Civi Law an Practica ercise

Syllabus-based eReviewer for the 2022 Bar

Compiled by RGL
Civil Law and Practical Exercises Reviewer for the 2022 Bar

Tabl of Content Part I private laws;

2. Presidential decrees and executive orders promulgated
Preliminary Title 2
I Preliminary Title by the President in the exercise of legislative powers;

Persons and Family Relations 5 3. Administrative rules and regulations, if their purpose is
E ect and Application of Laws
to enforce or implement existing law pursuant also to a
Human Relations valid delegation.
Succession 59
4. The charter of a city;
A E ect and Application of Laws
Obligations and Contracts 81 5. The circulars issued by the Monetary Board, if they are
When does an ordinary law take effect? meant not merely to interpret but to " ll in the details" of
Sales 131 ART 2. Laws shall take e ect after fteen days following the the Central Bank Act which that body is supposed to
completion of their publication either enforce.

Lease 143 1. in the O cial Gazette OR When publication NOT required

2. in a newspaper of general circulation in the Philippines, 1. Interpretative regulations and those merely internal in
Partnership 146 unless it is otherwise provided. xxxx nature;

Is publication needed? 2. Letters of instructions;

Agency 159
3. Municipal ordinances are not covered by this rule but by
Tañada v. Tuvera the Local Government Code.
Credit Transactions 167
The clause "unless it is otherwise provided" refers to the date of The publication must be in full or it is no publication at all
e ectivity and not to the requirement of publication itself, which since its purpose is to inform the public of the contents of the
Torts and Damages 176
cannot in any event be omitted. This clause does not mean that the laws.
legislator may make the law e ective immediately upon approval, or
Property 185 on any other date without its previous publication. Publication is
indispensable in every case, but the legislature may in its discretion Fariñas v. Executive Secretary
Credit Transactions 221 provide that the usual fteen-day period shall be shortened or
extended. The "E ectivity" clause (Section 16) of Rep. Act No. 9006 which
provides that it "shall take e ect immediately upon its
Land Titles and Deeds 226 What needs to be published? approval," is defective.
1. All statutes, including those of local application and
Practical Exercises 241 Following Article 2 of the Civil Code and the doctrine enunciated in

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Tañada, Rep. Act No. 9006, notwithstanding its express statement,
took e ect fteen days after its publication in the O cial Gazette or
a newspaper of general circulation.
B Human Relations
Principle of Abuse of Rights
ART 19. Every person must, in the exercise of his rights and in
the performance of his duties,
a) act with justice,
b) give everyone his due, and
c) observe honesty and good faith.
The principle of abuse of rights sets certain standards which
must be observed not only in the exercise of one's rights but also in
the performance of one's duties.
When a right is exercised in a manner which does not conform
with the norms enshrined in Article 19 and results in damage to
another, a legal wrong is thereby committed for which the
wrongdoer must be held responsible.
But while Article 19 lays down a rule of conduct for the
government of human relations and for the maintenance of social
order, it does not provide a remedy for its violation. Generally, an
action for damages under either Article 20 or Article 21
would be proper.
Albetz Investment Inc. v. CA
The demolition complained of in the case at bar was not carried out
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in a manner consistent with justice and good faith. At the instance of
petitioner, it was done in a swift, unconscionable manner, giving the
occupants of the house no time at all to remove their belongings
therefrom. No damage worth mentioning would have been
sustained by petitioner if their men, led by the Sheri , had been
instructed to allow said occupants to remove their personal
properties, considering that this would not have taken a considerable
length of time.
Velayo v. Shell Co. Phil.
The Defendant schemed and a ected the transfer of its credits (from
which it could derive practically nothing) to its sister corporation in
the United States where CALI's plane C-54 was then situated,
succeeding by such swift and unsuspected operation in disposing of
said insolvent's property by removing it from the possession and
ownership of the insolvent.
We hold Defendant liable to pay to the plainti , for the bene t of
the insolvent CALI and its creditors, as compensatory damages a
sum equivalent to the value of the plane at the time aforementioned
and another equal sum as exemplary damages.
Meralco v. CA
A prior written notice to the customer is required before
disconnection of the service. Failure to give such prior notice
amounts to a tort.
The prematurity of the action is indicative of an intent to cause
additional mental and moral su ering to private respondent. This is
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a clear violation of Article 21 of the Civil Code.
In the Manila Gas Corporation case, the Court held that
respondents’ default in the payment of his bills “cannot be utilized
by petitioner to defeat or nullify the claim for damages. At most, this
circumstance can be considered as a mitigating factor in
ascertaining the amount of damages to which respondent is
entitled.”
Go v. Cordero 2010
The failure of Robinson, Go, Tecson and Landico to act with
fairness, honesty and good faith in securing better terms for the
purchase of high-speed catamarans from AFFA, to the prejudice of
Cordero as the duly appointed exclusive distributor, is further
proscribed by Article 19 of the Civil Code.
The elements of abuse of rights are the following:
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.
When Article 19 is violated, an action for damages is proper under
Articles 20 or 21 of the Civil Code. Article 20 pertains to damages
arising from a violation of law. Article 21 refers to acts contra
bonus mores and has the following elements:
1) There is an act which is legal;
2) but which is contrary to morals, good custom, public order,
or public policy; and
3) it is done with intent to injure.
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A common theme runs through Articles 19 and 21, and that is, the
act complained of must be intentional.
Cebu Country Club v. Elqueizaga
In rejecting respondent’s application for proprietary membership,
we nd that petitioners violated the rules governing human relations.
Petitioners committed fraud and evident bad faith in disapproving
respondent’s applications. This is contrary to morals, good custom
or public policy. Hence, petitioners are liable for damages pursuant
to Article 19 in relation to Article 21 of the same Code.
As to petitioners’ reliance on the principle of damnum absque
injuria or damage without injury, su ce it to state that the same is
misplaced. In Amonoy v. Gutierrez, we held that this principle
does not apply when there is an abuse of a person’s right, as in
this case.
Under Article 2219, moral damages may be recovered, among
others, in acts and actions referred to in Article 21.
Acts contrary to law done willfully or negligently causing
damage
ART 20. Every person who, contrary to law, wilfully or
negligently causes damage to another, shall indemnify the
latter for the same.
No right impaired, no basis for damages
Felipe v. Leuterio, et al.
Whether the courts have the authority to reverse the award of the board
of judges of an oratorical competition.
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No rights to the prizes may be asserted by the contestants, because
theirs was merely the privilege to compete for the prize, and that
privilege did not ripen into a demandable right unless and until they
were proclaimed winners of the competition by the appointed
arbiters or referees or judges.
Error and wrong do not mean the same thing. "Wrong" as used in
the aforesaid legal principle is the deprivation or violation of a right.
Granting that Imperial su ered some loss or injury, yet in law there
are instances of "damnum absque injuria". This is one of them. If
fraud or malice had been proven, it would be a di erent proposition.
But then her action should be directed against the individual judge
or judges who fraudulently or maliciously injured her. Not against
the other judges. The judiciary has no power to reverse the
award of the board of judges of an oratorical contest.
University of the East v. Jader
May an educational institution be held liable for damages for
misleading a student into believing that the latter had satisfied all the
requirements for graduation when such is not the case?
YES. Educational institutions are duty-bound to inform the
students of their academic status and not wait for the latter to
inquire from the former. Want of care to the conscious disregard of
civil obligations coupled with a conscious knowledge of the cause
naturally calculated to produce them would make the erring party
liable. Petitioner’s liability arose from its failure to promptly inform
respondent of the result of an examination and in misleading the
latter into believing that he had satis ed all requirements for the
course.
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However, while petitioner was guilty of negligence and thus
liable to respondent for the latter’s actual damages, we hold that
respondent should not have been awarded moral damages.
At the very least, it behooved on respondent to verify for himself
whether he has completed all necessary requirements to be eligible
for the bar examinations.
Willful acts that are contrary to law causing damage to another
ART 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.
Breach of promise to marry, is it actionable?
"Mere breach of a promise to marry" is NOT an actionable wrong.
What kind of damage can be recovered?
Per express provision of Article 2219 (10) of the New Civil Code,
moral damages are recoverable in the cases mentioned in Article
21.
Cecilio Pe v. Alfonso Pe
The circumstances under which defendant tried to win Lolita's
a ection cannot lead to any other conclusion than that it was he
who, thru an ingenious scheme or trickery, seduced the latter to the
extent of making her fall in love with him. Defendant not only
deliberately, but through a clever strategy, succeeded in winning the
a ection and love of Lolita to the extent of having illicit relations
with her. The wrong he has caused her and her family is indeed
immeasurable considering the fact that he is a married man.
Verily, he has committed an injury to Lolita's family in a manner
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contrary to morals, good customs and public policy as contemplated
in Article 21 of the new Civil Code.
Wassmer v. Velez
Hermosisima v. CA, as reiterated in Estopa v. Piansay, ruled that
"mere breach of a promise to marry" is not an actionable wrong.
This here is not a case of mere breach of promise to marry. To
formally set a wedding and go through all the above-described
preparation, and publicity, only to walk out of it when the
matrimony is about to be solemnized, is quite di erent. This is
palpably and unjusti ably contrary to good customs, for which
defendant must be held answerable in damages in accordance with
Article 21 aforesaid.
Gashem Shookat Baksh v. CA
Whether or not damages may be recovered for a breach of promise to
marry on the basis of Article 21.
Where a man's promise to marry is in fact the proximate
cause of the acceptance of his love by a woman and his
representation to ful ll that promise thereafter becomes the
proximate cause of the giving of herself unto him in a sexual
congress, proof that he had, in reality, no intention of marrying her
and that the promise was only a subtle scheme or deceptive device to
entice or inveigle her to accept him and to obtain her consent to the
sexual act, could justify the award of damages pursuant to Article 21
not because of such promise to marry but because of the fraud and
deceit behind it and the willful injury to her honor and reputation
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which followed thereafter. It is essential, however, that such
injury should have been committed in a manner contrary to
morals, good customs or public policy.
Unjust Enrichment
Solutio Indebiti and Accion en rem verso
ART 22. Every person who through an act of performance by
another, or any other means, acquires or comes into possession
of something at the expense of the latter without just or legal
ground, shall return the same to him.
Requisites for an Accion in rem verso
a) Defendant has been enriched;
b) Plainti su ered a loss;
c) Enrichment of defendant is without just or legal ground; and
d) Plainti has NO other action based on contract,
quasi-contract, crime, or quasi-delict.
Even without fault one is liable for damages if benefited
ART 23. Even when an act or event causing damage to
another's property was not due to the fault or negligence of
the defendant, the latter shall be liable for indemnity if
through the act or event he was bene ted.
Parens Patriae
Meaning of court’s vigilance for the protection of the poor
ART 24. In all contractual, property or other relations, when
one of the parties is at a disadvantage on account of his moral
dependence, ignorance, indigence, mental weakness, tender
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age or other handicap, the courts must be vigilant for his
protection.
Damages Against Public O cials and
for Unfair Competition
ART 27. Any person su ering material or moral loss because a
public servant or employee refuses or neglects, without just
cause, to perform his o cial duty may le an action for
damages and other relief against the latter, without prejudice
to any disciplinary administrative action that may be taken.
ART 28. Unfair competition in agricultural, commercial or
industrial enterprises or in labor through the use of force,
intimidation, deceit, machination or any other unjust,
oppressive or highhanded method shall give rise to a right of
action by the person who thereby su ers damage.
II Persons and Family Relations
Persons
Civil Personality
Use of Surnames
Entries in the Civil Registry and
Clerical Error Law
Absence
Civil Code Provisions
Presumptive death of absent spouse under the Family
Code
Marriage
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Requisites of marriage Domestic Adoption (RA 8552) ART 41. For civil purposes, the foetus is considered born if it is
Exemption from license requirement Who may adopt alive at the time it is completely delivered from the mother's
womb.
Marriages solemnized abroad and foreign divorce Who may be adopted
However, if the foetus had an intrauterine life of less than
Void and voidable marriages Rights of an adopted child seven months, it is not deemed born if it dies within
Annulment under Article 36 Instances and e ects of rescission twenty-four hours after its complete delivery from the
maternal womb.
Legal Separation Inter-country Adoption (RA 8043)

Rights and Obligations Between Spouse When allowed Geluz v. CA

Property Relations Between Spouse Who may adopt Whether the husband of a woman, who voluntarily procured her
General provisions Who may be adopted abortion, could recover damages from the physician who caused the
same.
Donations by reason of marriage Support
NO. Since an action for pecuniary damages on account of personal
Absolute Community of Property Parental Authority
injury or death pertains primarily to the one injured, if no action for
Conjugal Partnership of Gains Emancipation such damages could be instituted on behalf of the unborn child on
account of the injuries it received, no such right of action could
Separation of property and administration of common Retroactivity of the Family Code
derivatively accrue to its parents or heirs. In fact, even if a cause of
property by one spouse during the marriage action did accrue on behalf of the unborn child, the same was
A Persons
Regime of separation of property extinguished by its pre-natal death, since no transmission to
anyone can take place from one that lacked juridical
Property regime of unions without marriage 1 Civil Personality personality.
Family Home
Natural Persons Recovery can not be had for the death of an unborn child. This is
Paternity and Filiation not to say that the parents are not entitled to collect any damages at
ART 40. Birth determines personality; but the conceived child
all. But such damages must be those in icted directly upon
Legitimate children shall be considered born for all purposes that are favorable to
them, as distinguished from the injury or violation of the rights of
Proof of liation it, provided it be born later with the conditions speci ed in the
the deceased, his right to life and physical integrity.
following article.
Illegitimate children
Commencement of civil personality Extinguishment of civil personality
Legitimated children
ART 42. Civil personality is extinguished by death.
Adoption

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The e ect of death upon the rights and obligations of the
deceased is determined by law, by contract and by will.
Rallos v. Felix Gochan & Sons Realty
Is the sale of the undivided share of Concepcion Rallos in lot 5983
valid although it was executed by the agent after the death of his
principal?
By reason of the very nature of the relationship between principal
and agent, agency is extinguished by the death of the principal or of
the agent. It follows a fortiori that any act of an agent after the
death of his principal is void ab initio unless the same falls under
the exceptions provided for in Articles 1930 and 1931.
Here, the agent, Simeon Rallos, knew of the death of his principal at
the time he sold the latter's share in Lot No. 5983 to respondent.
Thus, Article 1931 of the Civil Code is inapplicable.
People v. Tirol
Death extinguishes criminal liability. Civil liability however generally
subsists.
Dumlao v. Quality Plastic Product
As far as Oria was concerned, the lower court's judgment against him
in Civil Case No. T-662 is void for lack of jurisdiction over his
person. He was not, and he could not have been, validly served
with summons. He had no more civil personality. His juridical
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capacity, which is the tness to be the subject of legal relations, was
lost through death.
ART 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
rst, 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.
Juridical Persons
Kinds of juridical persons
ART 44. The following are juridical persons:
1) The State and its political subdivisions;
2) Other corporations, institutions and entities for public
interest or purpose, created by law; their personality
begins as soon as they have been constituted according to
law;
3) Corporations, partnerships and associations for private
interest or purpose to which the law grants a juridical
personality, separate and distinct from that of each
shareholder, partner or member.
2 Use of Surnames
Legitimate and Legitimated Children
ART 364. Legitimate and legitimated children shall principally
use the surname of the father.
Alanis III v. CA 2020
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Reading Article 364 of the Civil Code together with the State's
declared policy to ensure the fundamental equality of women and
men before the law, a legitimate child is entitled to use the surname
of either parent as a last name.
Indeed, the provision states that legitimate children shall
"principally" use the surname of the father, but "principally" does
not mean "exclusively." This gives ample room to incorporate into
Article 364 the State policy of ensuring the fundamental equality of
women and men before the law, and no discernible reason to ignore
it.
Adopted Children
ART 365. An adopted child shall bear the surname of the
adopter.
Illegitimate Children
ART 368. Illegitimate children referred to in Article 287 shall
bear the surname of the mother.
Alba v. CA
Substantial corrections or cancellations of entries in civil registry
records a ecting the status or legitimacy of a person may be e ected
through the institution of a petition under Rule 108 of the Revised
Rules of Court, with the proper RTC. Being a proceeding in rem,
acquisition of jurisdiction over the person of petitioner is therefore
not required in the present case. It is enough that the trial court is
vested with jurisdiction over the subject matter.
An in rem proceeding is validated essentially through publication.
The absence of personal service of the order to Armi was therefore
cured by the trial court's compliance with Section 4, Rule 108,
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which requires notice by publication.
Married Women
ART 370. A married woman may use:
1) Her maiden rst name and surname and add her
husband's surname, or
2) Her maiden rst name and her husband's surname or
3) Her husband's full name, but pre xing a word
indicating that she is his wife, such as "Mrs."
Remo v. Secretary of Foreign Affairs 2010
A married woman has an option, but not a duty, to use the
surname of the husband in any of the ways provided by Article
370 of the Civil Code.
The con ict between Article 370 of the Civil Code and Section 5(d)
of RA 8239 is more imagined than real. RA 8239, including its
implementing rules and regulations, does not prohibit a married
woman from using her maiden name in her passport. In fact, in
recognition of this right, the DFA allows a married woman who
applies for a passport for the rst time to use her maiden name. Such
an applicant is not required to adopt her husband's surname.
In the case of renewal of passport, a married woman may either
adopt her husband's surname or continuously use her maiden name.
If she chooses to adopt her husband's surname in her new passport,
the DFA additionally requires the submission of an authenticated
copy of the marriage certi cate. Otherwise, if she prefers to continue
using her maiden name, she may still do so. The DFA will not
prohibit her from continuously using her maiden name.
However, once a married woman opted to adopt her husband's
Reviewer for the 2022 Bar
surname in her passport, she may not revert to the use of her Change of Name
maiden name, except in the cases enumerated in Section 5(d) of RA
ART 376. No person can change his name or surname without
8239. These instances are:
judicial authority.
1) death of husband,
2) divorce, Republic v. Vicencio
3) annulment, or In Republic v. Hernandez, we have recognized inter alia, the
following as su cient grounds to warrant a change of name:
4) nullity of marriage.
a) when the name is ridiculous, dishonorable or extremely
Since petitioner's marriage to her husband subsists, she may not
di cult to write or pronounce;
resume her maiden name in the replacement passport. Otherwise
stated, a married woman's reversion to the use of her maiden name b) when the change is a legal consequence of legitimation or
must be based only on the severance of the marriage. adoption;
c) when the change will avoid confusion;
Legally Separated Wife
d) when one has continuously used and been known since
ART 372. When legal separation has been granted, the wife
childhood by a Filipino name and was unaware of alien
shall continue using her name and surname employed before
parentage;
the legal separation.
e) when the change is based on a sincere desire to adopt a
Laperal v. Republic Filipino name to erase signs of former alienage, all in good
faith and without prejudice to anybody; and
The language of the statute is mandatory that the wife, even after the
f) when the surname causes embarrassment and there is no
legal separation has been decreed, shall continue using her name and
showing that the desired change of name was for a
surname employed before the legal separation. This is so because her
fraudulent purpose, or that the change of name would
married status is una ected by the separation, there being no
prejudice public interest.
severance of the vinculum.
The touchstone for the grant of a change of name is that there be
Even, however, applying Rule 103 to this case, the fact of legal
‘proper and reasonable cause’ for which the change is sought. A
separation alone which is the only basis for the petition at
legitimate child generally bears the surname of his or her father. It
bar—is, in our opinion, not a su cient ground to justify a
must be stressed that a change of name is a privilege, not a matter
change of the name of herein petitioner, for to hold otherwise
of right, addressed to the sound discretion of the court.
would be to provide an easy circumvention of the mandatory
provisions of the said Article 372. More confusion with grave legal consequences could arise if we allow
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private respondent to bear her step-father’s surname, even if she is
not legally adopted by him. While previous decisions have allowed
children to bear the surname of their respective step-fathers even
without the bene t of adoption, these instances should be
distinguished from the present case.
In Calderon v. Republic, and Llaneta v. Agrava, this Court
allowed the concerned child to adopt the surname of the step-father,
but unlike the situation in the present case where private respondent
is a legitimate child, in those cases the children were not of
legitimate parentage.
Yasin v. Shari'a District Court,
Third Sharia Judicial District
When the marriage ties or vinculum no longer exists as in the case of
death of the husband or divorce as authorized by the Muslim Code,
the widow or divorcee need not seek judicial con rmation of the
change in her civil status in order to revert to her maiden
name as use of her former husband's is optional and not obligatory
for her. When petitioner married her husband, she did not change
her name but only her civil status. Neither was she required to secure
judicial authority to use the surname of her husband after the
marriage as no law requires it.
Usurpation of Name
ART 377. Usurpation of a name and surname may be the
subject of an action for damages and other relief.
Tolentino v. CA
Whether or not a woman who has been legally divorced from
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her husband may be enjoined by the latter's present wife from
using the surname of her former husband.
There is no usurpation of the petitioner's name and surname in this
case so that the mere use of the surname Tolentino by the private
respondent cannot be said to have injured the petitioner's rights.
The following are the elements of usurpation of a name:
1) there is an actual use of another's name by the defendant;
2) the use is unauthorized; and
3) the use of another's name is to designate personality or
identify a person.
None of these elements exists in the case at bar and neither is there a
claim by the petitioner that the private respondent impersonated
her. In fact, it is of public knowledge that Constancia Tolentino is
the legal wife of Arturo Tolentino so that all invitations for Senator
and Mrs. Tolentino are sent to Constancia. Consuelo never
represented herself after the divorce as Mrs. Arturo Tolentino but
simply as Mrs. Consuelo David-Tolentino. The private respondent
has legitimate children who have every right to use the surname
Tolentino.
Ursua v. CA
The use of a ctitious name or a di erent name belonging to another
person in a single instance without any sign or indication that the
user intends to be known by this name in addition to his real name
from that day forth does not fall within the prohibition contained
in C.A. No. 142 as amended.
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Entries in the Civil Registry and
3 Clerical Error Law
R.A. No. 9048 as amended by R.A. No. 10172
Acts, Events and Matters to be Registered
ART 407. Acts, events and judicial decrees concerning the civil
status of persons shall be recorded in the civil register.
Civil Registrar's Books are Public Documents
ART 410. The books making up the civil register and all
documents relating thereto shall be considered public
documents and shall be prima facie evidence of the facts
therein contained.
Republic v. Olaybar 2014
Rule 108 of the Rules of Court provides the procedure for
cancellation or correction of entries in the civil registry. The
proceedings may either be summary or adversary.
1. If the correction is clerical, then the procedure to be
adopted is summary.
2. If the recti cation a ects the civil status, citizenship or
nationality of a party, it is deemed substantial, and the
procedure to be adopted is adversary.
Here, respondent sought, not the nulli cation of marriage as there
was no marriage to speak of, but the correction of the record of such
marriage to re ect the truth as set forth by the evidence. Otherwise
stated, in allowing the correction of the subject certi cate of
marriage by cancelling the wife portion thereof, the trial court
did not, in any way, declare the marriage void as there was no
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marriage to speak of.
Republic v. Kho
What surfaces as an issue is whether the failure to implead Marivel
and Carlito's parents rendered the trial short of the required
adversary proceeding and the trial court's judgment void. Barco v.
Court of Appeals has ruled that the publication of the order of
hearing under Section 4 of Rule 108 cured the failure to implead an
indispensable party.
Onde v. The Office of the Local
2014
Civil Registrar of Las Piñas
Under Section 1 of R.A. No. 9048, clerical or typographical errors
on entries in a civil register can be corrected and changes of rst
name can be done by the concerned city civil registrar without need
of a judicial order.
In Silverio v. Republic, we held that under R.A. No. 9048,
jurisdiction over applications for change of rst name is now
primarily lodged with administrative o cers. The remedy and the
proceedings regulating change of rst name are primarily
administrative in nature, not judicial.
Correcting the entry on petitioner’s birth certi cate that his parents
were married on December 23, 1983 in Bicol to “not married” is a
substantial correction requiring adversarial proceedings. Said
correction is substantial as it will a ect his legitimacy and convert
him from a legitimate child to an illegitimate one.
Reviewer
Babiera v. Catotal
The present action involves the cancellation of petitioner's Birth
Certi cate; it does not impugn her legitimacy. Thus, the prescriptive
period set forth in Article 170 of the Family Code does not apply.
Verily, the action to nullify the Birth Certi cate does not prescribe,
because it was allegedly void ab initio.
Chuc Siu v. Local Civil Registrar of Manila
A summary petition as authorized by Article 412 of the New Civil
Code does not lie where the matter "concerns the citizenship not
only of petitioner but of his children." There is need for its being
"threshed out in an appropriate action."
In Re Petition for Change of Name Julian
Carulasan Wang v. Cebu City Civil Registrar
Petitioner sought to drop his middle name and have his registered
name changed from Julian Lin Carulasan Wang to Julian Lin Wang.
Does the law allow one to drop the middle name from his registered
name? We have to answer in the negative.
A name is said to have the following characteristics:
1) It is absolute, intended to protect the individual from being
confused with others.
2) It is obligatory in certain respects, for nobody can be
without a name.
3) It is xed, unchangeable, or immutable, at least at the start,
and may be changed only for good cause and by judicial
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proceedings.
4) It is outside the commerce of man, and, therefore,
inalienable and intransmissible by act inter vivos or mortis
causa.
5) It is imprescriptible.
This citation does not make any reference to middle names, but this
does not mean that middle names have no practical or legal
signi cance. Middle names serve to identify the maternal
lineage or liation of a person as well as further distinguish him
from others who may have the same given name and surname as he
has.
Here, the only reason advanced by petitioner for the dropping his
middle name is convenience. However, how such change of name
would make his integration into Singaporean society easier and
convenient is not clearly established. That the continued use of his
middle name would cause confusion and di culty does not
constitute proper and reasonable cause to drop it from his registered
complete name.
Republic v. Vergara 2015
The Court has held that not all alterations allowed in one's name are
con ned under Rule 103 and that corrections for clerical errors may
be set right under Rule 108.
Here, respondent never had any intention to change her name and
sex. What she seeks is simply the removal of the clerical fault or
error in her registered sex and given name, and to set aright
the same to conform to her real sex and the name she grew up
with.
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In any event, even granting that Rule 103 applies to this case, it still
cannot be denied that respondent complied with the requirements
for an adversarial proceeding before the RTC. The publication and
posting of the notice of hearing in a newspaper of general circulation
and the notices sent to the OSG, the Civil Registrar-General and the
Local Civil Registrar of Pasig City are su cient indicia of an adverse
proceeding. The fact that no one opposed the petition, including the
OSG, did not deprive the court of its jurisdiction to hear the same
and did not make the proceedings less adversarial in nature.
Considering that the OSG did not oppose the petition and the
motion to present respondent's evidence ex parte when it had the
opportunity to do so, it cannot now complain that the proceedings
in the lower court were defective. In this regard, this Court adheres
to the principle that even substantial errors in a civil registry
may be corrected and the true facts established under Rule
108 provided the parties aggrieved by the error avail
themselves of the appropriate adversary proceeding.
4 Absence
a Civil Code Provisions
Provisional Measures in Case of Absence (Temporary Absence)
When a person disappears from his domicile, his whereabout
being unknown, and without leaving an administrator of his
properties
ART 381. When a person disappears from his domicile, his
whereabouts being unknown, and without leaving an agent to
administer his property, the judge, at the instance of an
Reviewer
interested party, a relative, or a friend, may appoint a person to
represent him in all that may be necessary.
Appointment of an Administrator of his property. His wife is
prefered to administrator.
ART 382. The appointment referred to in the preceding article
having been made, the judge shall take the necessary measures
to safeguard the rights and interests of the absentee and shall
specify the powers, obligations and remuneration of his
representative, regulating them, according to the
circumstances, by the rules concerning guardians.
Declaration of Absence
Declaration of Absence by the court if the disappearance is two
(2) years, and if he left behind an administrator of his
properties he can be declared an absentee after five (5) years.
ART 384. Two years having elapsed without any news about
the absentee or since the receipt of the last news, and ve years
in case the absentee has left a person in charge of the
administration of his property, his absence may be declared.
Who can ask for declaration of absence
ART 385. The following may ask for the declaration of
absence:
1) The spouse present;
2) The heirs instituted in a will, who may present an
authentic copy of the same;
3) The relatives who may succeed by the law of intestacy;
4) Those who may have over the property of the
absentee some right subordinated to the condition of
his death.
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When judicial declaration of absence will take effect
ART 386. The judicial declaration of absence shall not take
e ect until six months after its publication in a newspaper
of general circulation.
Administration of the Property of the Absentee
ART 388. The wife who is appointed as an administratrix of
the husband's property cannot alienate or encumber the
husband's property, or that of the conjugal partnership,
without judicial authority.
ART 389. The administration shall cease in any of the
following cases:
1) When the absentee appears personally or by means of
an agent;
2) When the death of the absentee is proved and his
testate or intestate heirs appear;
3) When a third person appears, showing by a proper
document that he has acquired the absentee's
property by purchase or other title.
Presumption of Death
Ordinary disappearance (7 years)
ART 390. After an absence of seven years, it being unknown
whether or not the absentee still lives, he shall be presumed
dead for all purposes, except for those of succession.
Opening up of estate (10 years)
The absentee shall not be presumed dead for the purpose of
opening his succession till after an absence of ten years.
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If he disappeared after the age of 75 years, an absence of
ve years shall be su cient in order that his succession may
be opened.
Extra-Ordinary disappearance (4 years)
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.
Presumptive death of absent spouse under the
b
Family Code
Republic v. CA
WON a petition for declaration of the presumptive death of a
person is in the nature of a special proceeding.
If it is, the period to appeal is 30 days and the party appealing must,
in addition to a notice of appeal, le with the trial court a record on
appeal to perfect its appeal. Otherwise, if the petition is an ordinary
action, the period to appeal is 15 days from notice or decision or
nal order appealed from and the appeal is perfected by ling a
notice of appeal.
Reviewer
The petition of Apolinaria Jomoc to have her absent spouse declared
presumptively dead had for its purpose her desire to contract a valid
subsequent marriage. Ergo, the petition for that purpose is a
"summary proceeding," following Art. 41, paragraph 2.
Since Title XI of the Family Code, entitled SUMMARY JUDICIAL
PROCEEDING IN THE FAMILY LAW, contains the following
provision, inter alia:
ART 238. Until modi ed by the Supreme Court, the
procedural rules provided for in this Title shall apply as regards
separation in fact between husband and wife, abandonment by
one of the other, and incidents involving parental authority.
there is no doubt that the petition of Apolinaria Jomoc required,
and is, therefore, a summary proceeding under the Family Code, not
a special proceeding under the Revised Rules of Court appeal for
which calls for the ling of a Record on Appeal. It being a summary
ordinary proceeding, the ling of a Notice of Appeal from the
trial court's order su ced.
Marriage
B
Family Code of the Philippines
ART 1. Marriage is a special contract of permanent union
between a man and a woman entered into in accordance with
law for the establishment of conjugal and family life. It is the
foundation of the family and an inviolable social institution
whose nature, consequences, and incidents are governed by
law and not subject to stipulation, except that marriage
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settlements may x the property relations during the
marriage within the limits provided by this Code.
Castillo v. De Leon-Castillo 2016
The validity of a marriage and all its incidents must be
determined in accordance with the law in e ect at the time of
its celebration. In this case, the law in force at the time Lea
contracted both marriages was the Civil Code. The children of the
parties were also born while the Civil Code was in e ect i.e. in 1979,
1981, and 1985. Hence, the Court must resolve this case using the
provisions under the Civil Code on void marriages.
1 Requisites of marriage
Essential Requisites
ART 2. No marriage shall be valid, unless these essential
requisites are present:
1) ⭐Legal capacity of the contracting parties who
must be a male and a female; and
2) Consent freely given in the presence of the
solemnizing o cer.
Formal Requisites
ART 3. The formal requisites of marriage are:
1) ⭐Authority of the solemnizing o cer;
2) ⭐A valid marriage license except in the cases
provided for in Chapter 2 of this Title; and
3) A marriage ceremony which takes place with the
appearance of the contracting parties before the
solemnizing o cer and their personal declaration that
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they take each other as husband and wife in the
presence of not less than two witnesses of legal age.
⭐ Absence makes the marriage VOID.
ART 4. The absence of any of the essential or formal
requisites shall render the marriage void ab initio, except as
stated in Article 35 (2).
Effect of irregularity in any of the formal requisites
Navarro v. Domagtoy
Even if the spouse present has a well-founded belief that the absent
spouse was already dead, a summary proceeding for the declaration
of presumptive death is necessary in order to contract a subsequent
marriage.
Where a judge solemnizes a marriage outside his court's jurisdiction,
there is a resultant irregularity in the formal requisite laid down in
Article 3, which while it may not affect the validity of the marriage,
may subject the o ciating o cial to administrative liability.
Simulated marriage
Go-Bangayan v. Bangayan Jr.
The marriage between Benjamin and Sally “was made only in jest”
and “a simulated marriage, at the instance of Sally, intended to
cover her up from expected social humiliation coming from relatives,
friends and the society especially from her parents seen as Chinese
conservatives.” In short, it was a ctitious marriage.
Reviewer
Legal capacity
ART 5. Any male or female of the age of eighteen years or
upwards not under any of the impediments mentioned in
Articles 37 and 38, may contract marriage.
Consent
Republic v. Albios 2013
Is a marriage, contracted for the sole purpose of acquiring American
citizenship in consideration of $2,000.00, void ab initio on the ground
of lack of consent?
NO. Consent was NOT lacking between Albios and Fringer. That
their consent was freely given is best evidenced by their conscious
purpose of acquiring American citizenship through marriage. Such
plainly demonstrates that they willingly and deliberately contracted
the marriage.
The respondent’s marriage is not at all analogous to a
marriage in jest. Albios and Fringer had an undeniable intention
to be bound in order to create the very bond necessary to allow the
respondent to acquire American citizenship.
Solemnizing o cer
Persons authorized to solemnize marriage
ART 7. Marriage may be solemnized by:
1) Any incumbent member of the judiciary within the
court's jurisdiction;
2) Any priest, rabbi, imam, or minister of any church
or religious sect duly authorized by his church or
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religious sect and registered with the civil registrar
general xxx;
3) Any ship captain or airplane chief only in the case
mentioned in Article 31;
4) Any military commander of a unit to which a
chaplain is assigned, in the absence of the latter,
during a military operation, likewise only in the cases
mentioned in Article 32;
5) Any consul-general, consul or vice-consul in the case
provided in Article 10.
ART 10. Marriages between Filipino citizens abroad may be
solemnized by a consul-general, consul or vice-consul of the
Republic of the Philippines. xxxx.
Alcantara v. Alcantara
An irregularity in any of the formal requisites of marriage
does not a ect its validity but the party or parties responsible for
the irregularity are civilly, criminally and administratively liable.
Moreover, the solemnizing o cer is not duty-bound to
investigate whether or not a marriage license has been duly
and regularly issued by the local civil registrar.
Kho v. Republic 2016
The Certi cation issued by the Civil Registrar is su cient evidence
to prove the absence of the subject marriage license. By virtue of
such certi cation, it becomes the burden of respondent to prove that
their marriage is valid as it is she who alleges such validity. The
Certi cate of Marriage issued by the o ciating priest does not
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contain any entry regarding the said marriage license.
Respondent could have obtained a copy of their marriage contract
from the National Archives and Records Section, where information
regarding the marriage license, i.e., date of issuance and license
number, could be obtained. However, she also failed to do so.
In Republic v. CA, this Court considered the certi cation issued by
the Local Civil Registrar as a certi cation of due search and
inability to nd the record or entry sought by the parties despite
the absence of a categorical statement that "such document does not
exist in their records despite diligent search."
Diaz-Salgado v. Anson 2016
A cursory examination of the marriage contract of Luis and Severina
reveals that no marriage license number was indicated therein. It
also appears therein that no marriage license was exhibited to the
solemnizing o cer.
Enumeration not exclusive. Mayor may also solemnize.
People v. Bustamante
When the issue involves the assumption of powers and duties of the
o ce of the mayor by the vice-mayor, when proper, it is immaterial
whether it is because the latter is the Acting Mayor or merely acting
as Mayor, for in both instances, he discharges all the duties and
wields the powers appurtenant to said o ce.
Marriage license
Where issued
Reviewer
ART 9. A marriage license shall be issued by the local civil
registrar of the city or municipality where either contracting
party habitually resides, except in marriages where no license is
required xxxx.
Sevilla v. Cardenas
A marriage license is an essential requisite for the validity of
marriage. The certi cation to be issued by the Local Civil Registrar
must categorically state that the document does not exist in his o ce or
the particular entry could not be found in the register despite
diligent search.
Aranes v. Occiano
Respondent judge should be faulted for solemnizing a marriage
without the requisite marriage license. In People vs. Lara, we held
that a marriage which preceded the issuance of the marriage
license is void, and that the subsequent issuance of such license
cannot render valid or even add an iota of validity to the marriage.
Abbas v. Gloria Goo Abbas 2013
The Municipal Civil Registrar of Carmona, Cavite, where the
marriage license of Gloria and Syed was allegedly issued, issued a
certi cation to the e ect that no such marriage license for Gloria and
Syed was issued, and that the serial number of the marriage license
pertained to another couple. The marriage cannot be characterized
as among the exemptions, and thus, having been solemnized without
a marriage license, is void ab initio.
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Marriage ceremony
ART 6. No prescribed form or religious rite for the solemnization
of the marriage is required. It shall be necessary, however, for
the contracting parties to appear personally before the
solemnizing o cer and declare in the presence of not less than
two witnesses of legal age that they take each other as husband
and wife. xxxx
Beso v. Daguman
A marriage can be held outside the judge’s chambers or courtroom
only in the following instances:
1. at the point of death;
2. in remote places in accordance with Article 29, or
3. upon the request of both parties in writing in a sworn
statement to this e ect. [ART 8]
Morigo v. People
In the instant case, no marriage ceremony at all was performed by a
duly authorized solemnizing o cer. Petitioner and Lucia Barrete
merely signed a marriage contract on their own. The mere private act
of signing a marriage contract bears no semblance to a valid marriage
and thus, needs no judicial declaration of nullity. Such act
alone, without more, cannot be deemed to constitute an ostensibly
valid marriage for which petitioner might be held liable for bigamy
unless he rst secures a judicial declaration of nullity before he
contracts a subsequent marriage.
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Proof to attack the validity of marriage
Lim Tanhu v. Ramolete
The primary evidence of a marriage must be an authentic copy
of the marriage contract. While a marriage may also be proved
by other competent evidence, the absence of the contract must rst
be satisfactorily explained. The certi cation of the person who
allegedly solemnized a marriage is not admissible evidence of such
marriage unless proof of loss of the contract or of any other
satisfactory reason for its non-production is rst presented to the
court.
Pugeda v. Trias
Testimony by one of the parties to the marriage, or by one of
the witnesses to the marriage, has been held to be admissible
to prove the fact of marriage. The person who o ciated at the
solemnization is also competent to testify as an eyewitness to the fact
of marriage.
Sy v. CA
On the day of the marriage ceremony, there was no marriage
license. A marriage license is a formal requirement; its absence
renders the marriage void ab initio. In addition, the marriage
contract shows that the marriage license was issued in Carmona,
Cavite, yet, neither petitioner nor private respondent ever resided in
Carmona.
Reviewer
Villanueva v. CA
The best documentary evidence of a marriage is the marriage
contract itself. A Torrens certi cate is the best evidence of
ownership of registered land, not of the civil status of the owner.
SSS v. Enobiso 2013
In Trinidad v. CA, et al., this Court ruled that the following may
be presented as proof of marriage:
a) testimony of a witness to the matrimony;
b) the couple's public and open cohabitation as husband and
wife after the alleged wedlock;
c) the birth and baptismal certi cate of children born during
such union; and
d) the mention of such nuptial in subsequent documents.
Here, the lack of prompt recording with the OCR does not amply
rebut the presumption that Lourdes was Petronilo's wife. As
declared in Vda. de Jacob, the "failure to send a copy of a
marriage contract for record purposes does not invalidate the
marriage." It is not the duty of the couple to send a copy of the
marriage contract to the civil registrar.
Avenido v. Avenido 2014
While a marriage certificate is considered the primary evidence of a
marital union, it is not regarded as the sole and exclusive evidence of
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marriage. Jurisprudence teaches that the fact of marriage may be
proven by relevant evidence other than the marriage certi cate.
Hence, even a person’s birth certi cate may be recognized as
competent evidence of the marriage between his parents.
Here, the establishment of the fact of marriage was completed by the
testimonies of Adelina, Climaco and Tecla; the unrebutted fact of
the birth within the cohabitation of Tecla and Eustaquio of four (4)
children coupled with the certi cates of the children’s birth and
baptism; and the certi cations of marriage issued by the parish priest
of the Most Holy Trinity Cathedral of Talibon, Bohol.
In the matter of the Intestate Estates of Delgado and Rustia
In this jurisdiction, every intendment of the law leans toward
legitimizing matrimony. Persons dwelling together apparently in
marriage are presumed to be in fact married. Semper praesumitur
pro matrimonio. Always presume marriage.
2 Exemption from license requirement
ARTICLE 27. In case either or both of the contracting parties are
at the point of death, the marriage may be solemnized
without necessity of a marriage license and shall remain valid
even if the ailing party subsequently survives.
ARTICLE 28. If the residence of either party is so located that
there is no means of transportation to enable such party to
appear personally before the local civil registrar, the marriage
may be solemnized without necessity of a marriage license.
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ARTICLE 33. Marriages among Muslims or among members of
the ethnic cultural communities may be performed validly
without the necessity of marriage license, provided they are
solemnized in accordance with their customs, rites or
practices.
ARTICLE 34. No license shall be necessary for the marriage of a
man and a woman who have lived together as husband and
wife
1) for at least ve years and
2) without any legal impediment to marry each other.
The contracting parties shall state the foregoing facts in an
a davit before any person authorized by law to administer
oaths. The solemnizing o cer shall also state under oath that
he ascertained the quali cations of the contracting parties and
found no legal impediment to the marriage.
Marriages solemnized abroad and foreign
3 same being considered contrary to our concept of public policy and
divorce
ART 26. All marriages solemnized outside the Philippines, in
accordance with the laws in force in the country where they
were solemnized, and valid there as such, shall also be valid in
this country, except those prohibited under Articles 35 (1), (4),
(5) and (6), 36, 37 and 38.
Where a marriage between a Filipino citizen and a foreigner is
validly celebrated and a divorce is thereafter validly obtained
abroad by the alien spouse capacitating him or her to remarry,
the Filipino spouse shall have capacity to remarry under
Philippine law. (As amended by Executive Order 227)
Reviewer
Lavadia v. Heirs of Luna 2014
Divorce between Filipinos is void and ine ectual under the
nationality rule adopted by Philippine law.
Republic v. Orbecido III
The reckoning point is not the citizenship of the parties at the time
of the celebration of the marriage, but their citizenship at the time
a valid divorce is obtained abroad by the alien spouse capacitating
the latter to remarry.
Llorente v. CA
In Van Dorn v. Romillo, Jr. we held that owing to the nationality
principle embodied in Article 15 of the Civil Code, only Philippine
nationals are covered by the policy against absolute divorces, the
morality.
Citing this landmark case, the Court held in Quita v. CA, that once
proven that respondent was no longer a Filipino citizen when he
obtained the divorce from petitioner, the ruling in Van Dorn would
become applicable and petitioner could "very well lose her right to
inherit" from him.
In Pilapil v. Ibay-Somera, we stated that divorce and its legal
e ects may be recognized in the Philippines insofar as respondent is
concerned in view of the nationality principle in our civil law on the
status of persons.
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Bayot v. CA
The fact that Rebecca was clearly an American citizen when she
secured the divorce and that divorce is recognized and allowed in any
of the States of the Union, the presentation of a copy of foreign
divorce decree duly authenticated by the foreign court issuing said
decree is, as here, su cient.
Garcia v. Recio
The divorce decree and the governing personal law of the alien
spouse who obtained the divorce must be proven. Our courts do not
take judicial notice of foreign laws and judgments; hence, like any
other facts, both the divorce decree and the national law of the alien
must be alleged and proven according to our law on evidence.
Ando v. DFA 2014
With respect to her prayer for the recognition of her second marriage
as valid, petitioner should have led, instead, a petition for the
judicial recognition of her foreign divorce from her rst
husband.
Fujiki v. Marinay 2013
The Rule on Declaration of Absolute Nullity of Void Marriages and
Annulment of Voidable Marriages (A.M. No. 02-11-10-SC) does
not apply in a petition to recognize a foreign judgment
relating to the status of a marriage where one of the parties is
a citizen of a foreign country.
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Moreover, in Juliano-Llave v. Republic, this Court held that the
rule in A.M. No. 02-11-10-SC that only the husband or wife can le
a declaration of nullity or annulment of marriage “does NOT apply
if the reason behind the petition is bigamy.”
Fujiki has the personality to le a petition to recognize the
Japanese Family Court judgment nullifying the marriage between
Marinay and Maekara on the ground of bigamy because the
judgment concerns his civil status as married to Marinay. For the
same reason he has the personality to le a petition under Rule 108
to cancel the entry of marriage between Marinay and Maekara in the
civil registry on the basis of the decree of the Japanese Family Court.
A recognition of a foreign judgment is NOT an action to
nullify a marriage. It is an action for Philippine courts to
recognize the e ectivity of a foreign judgment, which presupposes a
case which was already tried and decided under foreign law.
⭐Republic v. Manalo 2018 En Banc
In this jurisdiction, the following rules exist:
1. Philippine law does not provide for absolute divorce; hence,
our courts cannot grant it.
2. Consistent with Articles 15 and 17, the marital bond
between two Filipinos cannot be dissolved even by an
absolute divorce obtained abroad.
3. An absolute divorce obtained abroad by a couple, who are
both aliens, may be recognized in the Philippines, provided
it is consistent with their respective national laws.
4. In mixed marriages involving a Filipino and a foreigner, the
Reviewer
former is allowed to contract a subsequent marriage in case
the absolute divorce is validly obtained abroad by the alien
spouse capacitating him or her to remarry.
Based on a clear and plain reading of Paragraph 2 of Article 26, it
only requires that there be a divorce validly obtained abroad.
The letter of the law does not demand that the alien spouse
should be the one who initiated the proceeding wherein the
divorce decree was granted. It does not distinguish whether the
Filipino spouse is the petitioner or the respondent in the foreign
divorce proceeding.
Morisono v. Morisono 2018 reiterating Manalo
Pursuant to Manalo, foreign divorce decrees obtained to nullify
marriages between a Filipino and an alien citizen may already be
recognized in this jurisdiction, regardless of who between the
spouses initiated the divorce; provided, of course, that the party
petitioning for the recognition of such foreign divorce decree –
presumably the Filipino citizen – must prove the divorce as a fact
and demonstrate its conformity to the foreign law allowing it.
Republic v. Cote 2018
WON the provisions of A.M. No. 02-11-10-SC applies in a case
involving recognition of a foreign decree of divorce.
A.M. No. 02-11-10-SC only covers void and voidable
marriages that are speci cally cited and enumerated in the
Family Code.
It was error for the RTC to use as basis for denial of petitioner's
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appeal Section 20 of A.M. No. 02-11-10-SC. Since Florie followed
the procedure for cancellation of entry in the civil registry, an appeal
from the RTC decision should be governed by Section 3 of Rule
41 of the Rules of Court and not A.M. No. 02-11-10-SC.
Noveras v. Noveras 2014
The trial court erred in recognizing the divorce decree which severed
the bond of marriage between the parties. Only the divorce decree
was presented in evidence. The required certi cates to prove its
authenticity, as well as the pertinent California law on divorce were
not presented. Absent a valid recognition of the divorce decree, it
follows that the parties are still legally married in the Philippines.
The trial court thus erred in proceeding directly to liquidation.
Nullada v. the Civil Registrar of Manila 2019
Applying the same legal considerations and considering the similar
factual milieu that attended in Manalo, the present case warrants a
reversal of the RTC's decision that refused to recognize the divorce
decree that was mutually obtained by Marlyn and her foreigner
spouse in Japan solely on the ground that the divorce was jointly
initiated by the spouses. The Court nds no reason to deviate from
its recent disposition on the issue, as made in Manalo.
4 Void and voidable marriages
Rule on Declaration of Absolute Nullity of Marriage and
Annulment of Voidable Marriages
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Marriages that are Void ab initio
ART 35. The following marriages shall be VOID from the
beginning:
1) Those contracted by any party below eighteen
years of age even with the consent of parents or
guardians;
2) Those solemnized by any person not legally
authorized to perform marriages unless such
marriages were contracted with either or both parties
believing in good faith that the solemnizing o cer
had the legal authority to do so;
3) Those solemnized without license, except those
covered the preceding Chapter;
4) Those bigamous or polygamous marriages not
failing under Article 41;
5) Those contracted through mistake of one
contracting party as to the identity of the other; and
6) Those subsequent marriages that are void under
Article 53.
Incestuous Marriage
ART 37. Marriages between the following are incestuous and
void from the beginning, whether relationship between the
parties be legitimate or illegitimate:
1) Between ascendants and descendants of any degree;
and
2) Between brothers and sisters, whether of the full or
half blood.
Reviewer
Void Marriage for Reason of Public Policy
ART 38. The following marriages shall be void from the
beginning for reasons of public policy:
1) Between collateral blood relatives whether legitimate
or illegitimate, up to the fourth civil degree;
2) Between step-parents and step-children;
3) Between parents-in-law and children-in-law;
4) Between the adopting parent and the adopted child;
5) Between the surviving spouse of the adopting parent
and the adopted child;
6) Between the surviving spouse of the adopted child
and the adopter;
7) Between an adopted child and a legitimate child of
the adopter;
8) Between adopted children of the same adopter; and
9) Between parties where one, with the intention to
marry the other, killed that other person's spouse, or
his or her own spouse.
Imprescriptibility of Action to Declare Nullity of
Marriage
ART 39. The action or defense for the declaration of absolute
nullity of a marriage shall not prescribe.
Niñal v. Bayadog, supra
The law makes either the action or defense for the declaration of
absolute nullity of marriage imprescriptible. Corollarily, if the death
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of either party would extinguish the cause of action or the ground
for defense, then the same cannot be considered imprescriptible.
Bigamous Marriage Under Art 40
ART 40. The absolute nullity of a previous marriage may be
invoked for purposes of remarriage on the basis solely of a
nal judgment declaring such previous marriage void.
Article 40 and the crime of Bigamy
For a person to be convicted of bigamy, the following
elements must concur:
1) that the o ender has been legally married;
2) that the rst marriage has not been legally dissolved
or, in case of an absentee spouse, the absent spouse
could not yet be presumed dead according to the
provisions of the Civil Code;
3) that the o ender contracts a second or subsequent
marriage; and
4) that the second or subsequent marriage has all the
essential requisites for validity.
Mercado v. Tan and Iwasawa v. Custodio Gangan 2013
A judicial declaration of nullity of a previous marriage is
necessary before a subsequent one can be legally contracted.
One who enters into a subsequent marriage without rst obtaining
such judicial declaration is guilty of bigamy. This principle applies
even if the earlier union is characterized by statute as “void.”
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Nicdao Cariño v. Cariño
The marriage between petitioner Susan Nicdao and the deceased,
having been solemnized without the necessary marriage license, and
not being one of the marriages exempt from the marriage license
requirement, is undoubtedly void ab initio.
Accordingly, the declaration in the instant case of nullity of the
previous marriage of the deceased and Susan Nicdao does not
validate the second marriage of the deceased with Susan Yee. The fact
remains that their marriage was solemnized without rst obtaining a
judicial decree declaring the marriage of Susan Nicdao and the
deceased void. Hence, the marriage of Susan Yee and the deceased is,
likewise, void ab initio.
Montañez v. Cipriano 2012
Whether or not the RTC erred in quashing the Information for
bigamy filed against respondent.
YES. Here, at the time respondent contracted the second marriage,
the rst marriage was still subsisting as it had not yet been legally
dissolved. In Atienza v. Brillantes, Jr., the Court already made the
declaration that Article 40, which is a rule of procedure, should be
applied retroactively.
Capili v. People 2013
Whether or not the subsequent declaration of nullity of the second
marriage is a ground for dismissal of the criminal case for bigamy.
NO. The subsequent judicial declaration of the second marriage for
Reviewer
being bigamous in nature does not bar the prosecution of petitioner
for the crime of bigamy.
People v. Odtuhan 2013
Settled is the rule that criminal culpability attaches to the o ender
upon the commission of the o ense and from that instant, liability
appends to him until extinguished as provided by law and that the
time of ling of the criminal complaint or information is material
only for determining prescription.
Sarto y Misalucha v. People 2018
Redante admitted that he had contracted two marriages. He,
however, put forth the defense of the termination of his rst
marriage as a result of the divorce obtained abroad by his alien
spouse.
Since neither the divorce decree nor the alleged Canadian law was
satisfactorily demonstrated, the type of divorce supposedly secured
could not be ascertained. As such, Redante failed to prove his
defense that he had the capacity to remarry when he contracted a
subsequent marriage to Fe. His liability for bigamy is, therefore,
now beyond question.
No retroactive effect for Article 40
Castillo v. De Leon-Castillo, supra 2016
We nd that the provisions of the Family Code cannot be
retroactively applied to the present case, for to do so would prejudice
the vested rights of petitioner and of her children.
By RGL
for the 2022 Bar
The subsequent marriage of Lea to Renato is valid in view of the
invalidity of her rst marriage to Bautista because of the absence of a
marriage license. That there was no judicial declaration that the rst
marriage was void ab initio before the second marriage was
contracted is immaterial as this is not a requirement under the Civil
Code.
Vitangcol v. People 2016
Persons intending to contract a second marriage must rst secure a
judicial declaration of nullity of their rst marriage. If they proceed
with the second marriage without the judicial declaration, they are
guilty of bigamy regardless of evidence of the nullity of the rst
marriage.
Mere presentation of a certi cation from the civil registrar that the
marriage license cannot be found is not enough to discharge the
burden of proving that no such marriage license was issued.
Judicial Declaration of Presumptive Death
Requisites
There are four (4) requisites for the declaration of presumptive death
under Article 41 of the Family Code:
1. That the absent spouse has been missing for 4 consecutive
years, or 2 consecutive years if the disappearance occurred
where there is danger of death under the circumstances laid
down in Article 391, Civil Code;
2. That the present spouse wishes to remarry;
3. That the present spouse has a well-founded belief that the
absentee is dead; and
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4. That the present spouse les a summary proceeding for the
declaration of presumptive death of the absentee.
Republic v. Nolasco
Nolasco failed to conduct a search for his missing wife with
such diligence as to give rise to a "well-founded belief" that she
is dead.
When he arrived in San Jose, Antique after learning of Janet's
departure, instead of seeking the help of local authorities or of the
British Embassy, he secured another seaman's contract and went to
London, a vast city of many millions of inhabitants, to look for her
there. We do not consider that walking into a major city like
Liverpool or London with a simple hope of somehow bumping into
one particular person there — which is in e ect what Nolasco says
he did — can be regarded as a reasonably diligent search.
Republic v. Espinosa Cantor 2013 En Banc
The Family Code was explicit that the court’s judgment in summary
proceedings, such as the declaration of presumptive death of an
absent spouse under Article 41 of the Family Code, shall be
immediately nal and executory. Modi cation of the court’s
ruling, no matter how erroneous, is no longer permissible. The nal
and executory nature of this summary proceeding thus prohibits
the resort to appeal. (Republic v. Bermudez-Lorino, Republic v.
Tango)
The law did not de ne what is meant by “well-founded belief.”
To be able to comply with this requirement, the present spouse must
prove that his/her belief was the result of diligent and reasonable
Reviewer
e orts and inquiries to locate the absent spouse and that based on
these e orts and inquiries, he/she believes that under the
circumstances, the absent spouse is already dead. It requires
exertion of active e ort (not a mere passive one).
Judicial Declaration of
Presumptive Death NOT required
prior to effectivity of Family Code
Valdez v. Republic
For the purposes of the civil marriage law, it is not necessary to have
the former spouse judicially declared an absentee. The declaration of
absence made in accordance with the provisions of the Civil Code
has for its sole purpose to enable the taking of the necessary
precautions for the administration of the estate of the absentee. For the
celebration of civil marriage, however, the law only requires
1. that the former spouse has been absent for seven
consecutive years at the time of the second marriage,
2. that the spouse present does not know his or her former
spouse to be living,
3. that such former spouse is generally reputed to be dead and
4. the spouse present so believes at the time of the celebration
of the marriage.
Under the Civil Code, the presumption of death is established
by law and no court declaration is needed for the presumption
to arise.
Matias v. Republic 2018
By RGL
for the 2022 Bar
The petition for the declaration of presumptive death led by
the petitioner is not an authorized suit and should have been
dismissed by the RTC because petitioner was not seeking to remarry.
A reading of Article 41 of the FC shows that the presumption of
death established therein is ONLY applicable for the purpose
of contracting a valid subsequent marriage under the said law.
Republic v. Catubag 2018
Since what is involved in the instant case is a petition for declaration
of presumptive death, the relevant provisions of law are Articles 41,
238, and 253 of the Family Code. These provisions explicitly
provide that actions for presumptive death are summary in nature.
Parties cannot seek reconsideration, nor appeal decisions in
summary judicial proceedings under the Family Code. Petitioner's
resort to certiorari under Rule 65 of the Rules of Court to challenge
the RTC's Order declaring Shanaviv presumptively dead was
proper.
Santos v. Santos 2014
The proper remedy for a judicial declaration of presumptive death
obtained by extrinsic fraud is an action to annul the judgment.
An affidavit of reappearance is not the proper remedy when the
person declared presumptively dead has never been absent.
Voidable Bigamous Marriage
SSS v. Vda. De Bailon
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If the subsequent marriage is not terminated by registration of an
a davit of reappearance or by judicial declaration but by death of
either spouse as in the case at bar, the e ects of dissolution of valid
marriages shall arise.
It bears reiterating that a voidable marriage cannot be assailed
collaterally except in a direct proceeding. In the case at bar, as no
step was taken to nullify, in accordance with law, Bailon's and
respondent's marriage prior to the former's death in 1998,
respondent is rightfully the dependent bene ciary of Bailon.
Effects of Reappearance
ART 42. The subsequent marriage referred to in the preceding
Article shall be automatically terminated by the recording
of the a davit of reappearance of the absent spouse, unless
there is a judgment annulling the previous marriage or
declaring it void ab initio.
A sworn statement of the fact and circumstances of
reappearance shall be recorded in the civil registry of the
residence of the parties to the subsequent marriage at the
instance of ANY interested person, with due notice to the
spouses of the subsequent marriage and without prejudice to
the fact of reappearance being judicially determined in case
Effects if both parties to the subsequent marriage are in bad
such fact is disputed.
faith
Effects of termination of subsequent marriage
by reappearance of the absent spouse
ART 43. The termination of the subsequent marriage referred
to in the preceding Article shall produce the following e ects:
1) The children of the subsequent marriage conceived
prior to its termination shall be considered
legitimate;
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2) The property relations shall be dissolved and
liquidated, but if either spouse contracted said
marriage in bad faith, his or her share of the net
pro ts shall be forfeited in favor of
a) the common children or,
b) if there are none, the children of the guilty
spouse by a previous marriage or
c) in default of children, the innocent spouse;
3) Donations by reason of marriage shall remain valid,
except that if the donee contracted the marriage in
bad faith, such donations made to said donee are
revoked by operation of law;
4) The innocent spouse may revoke the designation of
the other spouse who acted in bad faith as
bene ciary in any insurance policy, even if such
designation be stipulated as irrevocable; and
5) The spouse who contracted the subsequent marriage
in bad faith shall be disquali ed to inherit from
the innocent spouse by testate and intestate
succession.
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 marriage and testamentary dispositions
made by one in favor of the other are revoked by operation of
law.
By RGL
for the 2022 Bar
Voidable Marriages
Grounds for Annulment of Marriage
ART 45. Simply
a. Lack of Parental Consent;
b. Unsoundness of mind;
c. Consent obtained by Fraud;
d. Consent obtained by force, intimidation, or undue
in uence;
e. Physical incapacity of consummating the marriage;
f. A icted with STD that is serious and incurable.
Elmer Bermudo v. CA 2013
Petitioner’s claim of vitiated consent as a result of the force and
intimidation employed by respondent’s friends in obtaining his
agreement to his marriage with respondent has no merit.
Here, no evidence was presented to reveal force, intimidation or
undue in uence. There is no proof of the facts or circumstances
constituting force, intimidation or undue in uence that respondent
or her friends have improperly taken advantage of, or used their
power, if any, over the will of petitioner, depriving him of a
reasonable freedom of choice. Petitioner is a healthy male with
su cient intellectual capacity to resist any untoward intimidation
against him.
Kinds of Fraud that could invalidate the marriage
ART 46. Any of the following circumstances shall constitute
fraud referred to in Number 3 of the preceding Article:
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1) Non-disclosure of a previous conviction by nal
judgment of the other party of a crime involving
moral turpitude;
2) Concealment by the wife of the fact that at the time
of the marriage, she was pregnant by a man other
than her husband;
3) Concealment of STD, regardless of its nature,
existing at the time of the marriage; or
4) Concealment of drug addiction, habitual
alcoholism or homosexuality or lesbianism
existing at the time of the marriage.
No other misrepresentation or deceit as to character, health,
rank, fortune or chastity shall constitute such fraud as will give
grounds for action for the annulment of marriage.
Aquino v. Delizo
Concealment by the wife of the fact that at the time of the marriage,
she was pregnant by a man other than her husband constitutes fraud
and is ground for annulment of marriage.
Prescriptive period for Annulment of Marriage
ART 47. The action for annulment of marriage must be led
by the following persons and within the periods indicated
herein:
1) For causes mentioned in number 1 of Article 45 by
the party whose parent or guardian did not give his or
her consent, within 5 years after attaining the age
of twenty-one, or by the parent or guardian or
person having legal charge of the minor, at any time
Reviewer for the 2022 Bar
before such party has reached the age of
contending parties is not fatal to the validity of the proceedings
twenty-one;
in the trial court.
2) For causes mentioned in number 2 of Article 45, by
the same spouse, who had no knowledge of the
other's insanity; or by any relative or guardian or
Ancheta v. Ancheta
person having legal charge of the insane, at any time
before the death of either party, or by the insane The records show that for the petitioner’s failure to le an answer to
spouse during a lucid interval or after regaining the complaint, the trial court granted the motion of the respondent
sanity; herein to declare her in default. The public prosecutor condoned the
acts of the trial court when he interposed no objection to the motion
3) For causes mentioned in number 3 of Articles 45, by
of the respondent. The trial court forthwith received the evidence of
the injured party, within 5 years after the discovery
the respondent ex-parte and rendered judgment against the
of the fraud;
petitioner without a whimper of protest from the public prosecutor.
4) For causes mentioned in number 4 of Article 45, by
The actuations of the trial court and the public prosecutor are in
the injured party, within 5 years from the time the
de ance of Article 48 of the Family Code.
force, intimidation or undue in uence disappeared or
ceased;
5) For causes mentioned in number 5 and 6 of Article Republic v. Iyoy
45, by the injured party, within 5 years after the
marriage. The general rule is that only the Solicitor General is authorized to
bring or defend actions on behalf of the People or the Republic once
No declaration of default in annulment cases the case is brought before this Court or the Court of Appeals. Since
it shall be eventually responsible for taking the case to the appellate
Tuason v. CA, supra courts when circumstances demand, then it is only reasonable and
practical that even while the proceeding is still being held before the
The role of the prosecuting attorney or scal in annulment of
RTC, the OSG can already exercise supervision and control over the
marriage and legal separation proceedings is to determine whether
conduct of the prosecuting attorney or scal therein to better
collusion exists between the parties and to take care that the evidence
guarantee the protection of the interests of the State.
is not suppressed or fabricated. Petitioner’s vehement opposition to
the annulment proceedings negates the conclusion that collusion
Custody and support of children during pendency of the case
existed between the parties. Here, the non-intervention of a
prosecuting attorney to assure lack of collusion between the Visitorial rights of parent
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ART 49. During the pendency of the action and in the
absence of adequate provisions in a written agreement
between the spouses, the Court shall provide for the support
of the spouses and the custody and support of their common
children. The Court shall give paramount consideration to the
moral and material welfare of said children and their choice of
the parent with whom they wish to remain. It shall also
provide for appropriate visitation rights of the other parent.
Silva v. CA
The case merely concerns the visitation right of a parent over his
children which the trial court has adjudged in favor of petitioner by
holding that he shall have “visitorial rights to his children during
Saturdays and/or Sundays, but in no case (could) he take out the
children without the written consent of the mother x x x." The
visitation right referred to is the right of access of a noncustodial
parent to his or her child or children.
Effects of Annulment of Marriage
ART 50. The e ects provided for by paragraphs (2), (3), (4)
and (5) of Article 43 and by Article 44 shall also apply in the
proper cases to marriages which are declared ab initio or
annulled by nal judgment under Articles 40 and 45.
The nal judgment in such cases shall provide for
1. the liquidation, partition and distribution of the
properties of the spouses,
2. the custody and support of the common children,
and
3. the delivery of third presumptive legitimes.
Reviewer
Valdes v. RTC
In a void marriage, regardless of the cause thereof, the property
relations of the parties during the period of cohabitation is governed
by the provisions of Article 147 or Article 148, such as the case
may be.
A court which has jurisdiction to declare the marriage a nullity must
be deemed likewise clothed with authority to resolve
incidental and consequential matters.
Yu v. Reyes-Carpio 2011
The family court shall proceed with the liquidation, partition and
distribution, custody, support of common children, and delivery of
their presumptive legitimes upon entry of judgment granting the
petition. And following the pertinent provisions of A.M. No.
02-11-10-SC, this act is undoubtedly consistent with Articles 50
and 51 of the Family Code, contrary to what petitioner asserts.
The trial court may receive evidence on the subject incidents after a
judgment granting the petition but before the decree of nullity or
annulment of marriage is issued.
Diño v. Diño 2011
Whether the trial court erred when it ordered that a decree of absolute
nullity of marriage shall only be issued after liquidation, partition,
and distribution of the parties' properties under Article 147 of the
Family Code.
YES. The ruling has no basis because Section 19(1) of the Rule does
By RGL
for the 2022 Bar
not apply to cases governed under Articles 147 and 148 of the Family
Code. Article 50 of the Family Code does not apply to marriages
which are declared void ab initio under Article 36, which
should be declared void without waiting for the liquidation of the
properties of the parties. Thus, what governs the liquidation of
properties owned in common by petitioner and respondent are the
rules on co-ownership.
Under Article 496 of the Civil Code, "partition may be made by
agreement between the parties or by judicial proceedings. x x x." It is
NOT necessary to liquidate the properties of the spouses in
the same proceeding for declaration of nullity of marriage.
Salas Jr. v. Aguila 2013
Under Art 147 of the Family Code, property acquired during the
marriage is prima facie presumed to have been obtained through the
couple’s joint e orts and governed by the rules on co-ownership.
In the present case, Salas did not rebut this presumption. Where the
ground for nullity of marriage was psychological incapacity, we held
that the properties acquired during the union of the parties, as found
by both the RTC and the CA, would be governed by co-ownership.
Partition and Presumptive Legitime
ART 51. In said partition, the value of the presumptive
legitimes of all common children, computed as of the date of
the nal judgment of the trial court, shall be delivered in cash,
property or sound securities, unless the parties, by mutual
agreement judicially approved, had already provided for such
matters.
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The children or their guardian or the trustee of their
property may ask for the enforcement of the judgment. xxxx
Requirement of registration of the decree of annulment or
nullity of marriage — Effects of non-compliance
ART 52. The judgment of annulment or of absolute nullity of
the marriage, the partition and distribution of the properties
of the spouses and the delivery of the children's presumptive
legitimes shall be recorded in the appropriate civil registry
and registries of property; otherwise, the same shall not a ect
third persons.
⭐ART 53. Either of the former spouses may marry again
after compliance with the requirements of the immediately
preceding Article; otherwise, the subsequent marriage shall be
null and void.
Status of children of dissolved marriages
ART 54. Children conceived or born before the judgment of
annulment or absolute nullity of the marriage under Article 36
has become nal and executory shall be considered legitimate.
Children conceived or born of the subsequent marriage under
Article 53 shall likewise be legitimate.
a Annulment under Article 36
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.
Meaning
"Psychological incapacity" should refer to no less than a mental
Reviewer
(not physical) incapacity that causes a party to be truly incognitive
of the basic marital covenants that concomitantly must be assumed
and discharged by the parties to the marriage which, as so expressed
by Article 68 of the Family Code, include their mutual obligations
to live together, observe love, respect and delity and render help
and support.
Requisites
Psychological incapacity must be characterized by
a) Gravity, the incapacity must be grave or serious such that
the party would be incapable of carrying out the ordinary
duties required in marriage;
b) Juridical antecedence, it must be rooted in the history of
the party antedating the marriage, although the overt
manifestations may emerge only after the marriage; and
c) Incurability, it must be incurable or, even if it were
otherwise, the cure would be beyond the means of the
party involved. (Santos v. CA)
⭐Tan-Andal v. Andal 2021 En Banc
1. The plainti -spouse must prove his or her case with clear
and convincing evidence.
2. The second Molina guideline is abandoned.
Psychological incapacity is neither a mental incapacity
nor a personality disorder that must be proven through
expert opinion.
There must be proof, however, of the durable or enduring
aspects of a person's personality, called "personality
structure," which manifests itself through clear acts of
dysfunctionality that undermines the family. The spouse's
By RGL
for the 2022 Bar
personality structure must make it impossible for him or her
to understand and, more important, to comply with his or
her essential marital obligations.
3. A party to a nullity case is still required to prove juridical
antecedence because it is an explicit requirement of the
law.
Proof of juridically antecedent psychological incapacity may
consist of testimonies describing the environment where the
supposedly incapacitated spouse lived that may have led to a
particular behavior.
4. The third Molina guideline is amended. Psychological
incapacity is incurable, not in the medical, but in the legal
sense.
This means that the incapacity is so enduring and persistent
with respect to a speci c partner, and contemplates a
situation where the couple's respective personality
structures are so incompatible and antagonistic that the
only result of the union would be the inevitable and
irreparable breakdown of the marriage.
5. With respect to gravity, the requirement is retained. The
psychological incapacity cannot be mere "refusal, neglect, or
di culty, much less ill will." In other words, it must be
shown that the incapacity is caused by a genuinely serious
psychic cause.
6. The persuasive e ect of the decisions of the National
Appellate Matrimonial Tribunal of the Catholic Church of
the Philippines on nullity cases pending before secular
courts is retained.
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While Article 36 is similarly worded to the third paragraph
of Canon 1095, canonical decisions based on the second
paragraph should likewise have a persuasive effect in secular
decisions on psychological incapacity.
Macam v. Macam 2014
Any party may attack a VOID marriage. It may be questioned even
beyond the lifetime of the parties to the marriage. Indeed, a void
marriage may be impugned either:
1) directly, by ling an action attacking the validity thereof; or
2) collaterally, in a suit instituted not to speci cally question
the same, but where the determination of the issue of its
validity is essential to the resolution of the controversy, as in
the case at bar.
Mallion v. Alcantara
A previous nal judgment denying a petition for declaration of
nullity on the ground of psychological incapacity BARS a
subsequent petition for declaration of nullity on the ground of lack
of marriage license.
Chi Ming Tsoi v. CA
One of the essential marital obligations under the Family Code is
"To procreate children based on the universal principle that
procreation of children through sexual cooperation is the basic end
Reviewer
of marriage." Constant non-ful llment of this obligation will nally
destroy the integrity or wholeness of the marriage.
In the case at bar, the senseless and protracted refusal of one of
the parties to ful ll the above marital obligation is equivalent
to psychological incapacity.
Republic v. Molina
1. The burden of proof to show the nullity of the marriage
belongs to the plainti .
2. The root cause of the psychological incapacity must be
a) medically or clinically identi ed,
b) alleged in the complaint,
c) su ciently proven by experts and
d) clearly explained in the decision.
3. The incapacity must be proven to be existing at “the time of
the celebration” of the marriage.
4. Such incapacity must also be shown to be medically or
clinically permanent or incurable.
5. Such illness must be grave enough to bring about the
disability of the party to assume the essential obligations of
marriage.
6. The essential marital obligations must be those embraced by
Articles 68 up to 71 of the Family Code as regards the
husband and wife as well as Articles 220, 221 and 225 of the
same Code in regard to parents and their children.
7. Interpretations given by the National Appellate
By RGL
for the 2022 Bar
Matrimonial Tribunal of the Catholic Church in the
Philippines, while not controlling or decisive, should be
given great respect by our courts.
8. The trial court must order the prosecuting attorney or scal
and the Solicitor General to appear as counsel for the state.
as reiterated in Azcueta v. Republic and CA
Ngo Te v. Te
and Halili v. Halili and Republic✔
Petitioner's behavioral pattern falls under the classi cation of
dependent personality disorder, and respondent's, that of the
narcissistic and antisocial personality disorder. Both parties
being a icted with grave, severe and incurable psychological
incapacity, the precipitous marriage is thus declared null and void.
Ting v. Velez-Ting
Far from abandoning Molina, the Court in Te v. Te simply
suggested the relaxation of the stringent requirements set forth
therein.
⭐Tenebro v. CA
The subsequent judicial declaration of nullity of marriage on
the ground of psychological incapacity does not retroact to the
date of the celebration of the marriage insofar as the Philippines’
penal laws are concerned. As such, an individual who contracts a
second or subsequent marriage during the subsistence of a valid
marriage is criminally liable for bigamy, notwithstanding the
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subsequent declaration that the second marriage is void ab initio on
the ground of psychological incapacity.
Antonio v. Reyes ✔ the respondent had “compulsive and dependent tendencies” to
The Court had already held in Marcos v. Marcos that personal
examination of the subject by the physician is NOT required
for the spouse to be declared psychologically incapacitated.
Buenaventura v. CA
By declaring the petitioner as psychologically incapacitated, the
possibility of awarding moral damages on the same set of facts was
negated. Since psychological incapacity means that one is truly
incognitive of the basic marital covenants that one must
assume and discharge as a consequence of marriage, it removes
the basis for the contention that the petitioner purposely
deceived the private respondent. If the private respondent was
deceived, it was not due to a willful act on the part of the petitioner.
Therefore, the award of moral damages was without basis in
law and in fact.
Rumbaua v. Rumbaua
A.M. No. 02-11-10-SC, as a remedial measure, removed the
mandatory nature of an OSG certi cation and may be applied
retroactively to pending matters. Thus, what is important is the
presence of the prosecutor in the case, not the remedial requirement
that he be certi ed to be present.
Reviewer for the 2022 Bar
1) Repeated physical violence or grossly abusive
conduct directed against the petitioner, a common
Kalaw v. Fernandez 2015 ✔
child, or a child of the petitioner;
In her Psychological Evaluation Report, Dr. Dayan impressed that
2) Physical violence or moral pressure to compel the
petitioner to change religious or political a liation;
the extent of being “relationship dependent.”
3) Attempt of respondent to corrupt or induce the
The frequency of the respondent’s mahjong playing should not have
petitioner, a common child, or a child of the
delimited our determination of the presence or absence of
petitioner, to engage in prostitution, or connivance
psychological incapacity. Instead, the determinant should be her
in such corruption or inducement;
obvious failure to fully appreciate the duties and
responsibilities of parenthood at the time she made her marital 4) Final judgment sentencing the respondent to
imprisonment of more than six years, even if
vows.
pardoned;
5) Drug addiction or habitual alcoholism of the
Vinas v. Parel-Vinas 2015 respondent;
6) Lesbianism or homosexuality of the respondent;
The lack of personal examination or assessment of the
respondent by a psychologist or psychiatrist is not necessarily 7) Contracting by the respondent of a subsequent
fatal in a petition for the declaration of nullity of marriage. bigamous marriage, whether in the Philippines or
“If the totality of evidence presented is enough to sustain a nding of abroad;
psychological incapacity, then actual medical examination of the
8) Sexual in delity or perversion;
person concerned need not be resorted to.”
9) Attempt by the respondent against the life of the
petitioner; or
Legal Separation 10) Abandonment of petitioner by respondent without
C justi able cause for more than one year.
Rule on Legal Separation
For purposes of this Article, the term "child" shall include a
child by nature or by adoption.
Grounds
ART 55. A petition for legal separation may be led on any of
Gandionco v. Penaranda, et al.
the following grounds:
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A decree of legal separation, on the ground of concubinage,
may be issued upon proof by preponderance of evidence in the
action for legal separation. No criminal proceeding or
conviction is necessary.
Defenses
ART 56. The petition for legal separation shall be denied on
any of the following grounds:
1) Condonation
Almacen v. Baltazar
There has been a condonation by the defendant of the acts
committed by the wife because the defendant had given money to
the plainti on several occasions through third persons.
Pardon or condonation does not require sexual intercourse
and it may be express or implied.
Bugayong v. Ginez
Condonation is the "conditional forgiveness or remission, by a
husband or wife of a matrimonial o ense which the latter has
committed".
A single voluntary act of sexual intercourse by the innocent spouse
after discovery of the o ense is ordinarily su cient to constitute
condonation, especially as against the husband. Where the parties
live in the same house, it is presumed that they live on terms of
matrimonial cohabitation.
Reviewer
2) Consent
People v. Sensano
The husband consented to the adulterous relations existing between
the accused and therefore he is not authorized by law to institute this
criminal proceeding.
3) Connivance
The furtive consent of one person to cooperate with another in the
commission of an unlawful act. The tacit encouragement of or
assent to another's wrongdoing. An agreement or consent,
indirectly given, that something unlawful shall be done by another.
4) Recrimination or Mutual Guilt
Arroyo Jr. v. CA
While there is a conceptual di erence between consent and pardon
in the sense that consent is granted prior to the adulterous act while
pardon is given after the illicit a air, nevertheless, for either consent
or pardon to bene t the accused, it must be given prior to the ling
of a criminal complaint.
5) Collusion
Ocampo v. Florenciano
Collusion in divorce, or legal separation means the agreement.
"* * * between husband and wife for one of them to commit, or
to appear to commit, or to be (represented in court as having
committed, a matrimonial o ense, or to suppress evidence of a
valid defense, for the purpose of enabling the other to obtain a
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divorce. This agreement, if not express, may be implied from the
acts of the parties. It is a ground for denying the divorce."
Here, the o ense of adultery had really taken place, according to the
evidence. It has been held that collusion may not be inferred from
the mere fact that the guilty party confesses to the o ense and thus
enables the other party to procure evidence necessary to prove it.
And proof that the defendant desires the divorce and makes no
defense, is not by itself collusion.
6) Prescription
Brown v. Yambao
Brown did not petition for legal separation proceedings until ten
years after he learned of his wife's adultery. An action for legal
separation can not be led except within one (1) year from and
after the plainti became cognizant of the cause and within
ve years from and after the date when such cause occurred.
Procedure
1) No hearing within 6 months from filing — Cooling-off
period
ART 58. An action for legal separation shall in no case be tried
before six months shall have elapsed since the ling of the
petition.
EXC Where violence as speci ed in RA 9262 is alleged,
cooling-o period shall not apply. (§19)
2) No decree can be issued without efforts towards
conciliation
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ART 59. No legal separation may be decreed unless the Court
has taken steps toward the reconciliation of the spouses and
is fully satis ed, despite such e orts, that reconciliation is
highly improbable.
3) No decree based on stipulation of facts or confession of
judgment
ART 60. No decree of legal separation shall be based upon a
stipulation of facts or a confession of judgment.
4) Court should order Fiscal to take steps to prevent
collusion. — In any case, the Court shall order the
prosecuting attorney or scal assigned to it to take steps to
prevent collusion between the parties and to take care that the
evidence is not fabricated or suppressed.
Macias v. Ochotorena
While the record shows that Public Prosecutor Paculanag had led a
Certi cation, such a directive must be made by the court before
trial could proceed, not after the trial on the merits of the case
had already been had. Notably, said Certi cation was led after
the respondent judge had ordered the termination of the case.
E ects
1) After filing, the spouses may live separately;
ART 61. After the ling of the petition for legal separation, the
spouses shall be entitled to live separately from each other.
The court, in the absence of a written agreement between the
spouses, shall designate either of them or a third person to
administer the absolute community or conjugal partnership
property. xxxx
Reviewer
2) During pendency of the action, the court may provide
order of support and custody of children in accordance
with Art. 49 F.C.;
3) Absolute Community or Conjugal Partnership is
dissolved and the guilty Spouse is not entitled to a share
in the profit;
4) Offending spouse is disqualified to inherit from the
innocent spouse.
ART 63. The decree of legal separation shall have the following
e ects:
1) The spouses shall be entitled to live separately from
each other, but the marriage bonds shall not be
severed;
2) The absolute community or the conjugal partnership
shall be dissolved and liquidated but the o ending
spouse shall have no right to any share of the net
profits;
3) The custody of the minor children shall be awarded
to the innocent spouse; and
4) The o ending spouse shall be disquali ed from
inheriting from the innocent spouse by intestate
succession. Moreover, provisions in favor of the
o ending spouse made in the will of the innocent
spouse shall be revoked by operation of law.
5) Innocent spouse may revoke donation in favor of guilty
spouse
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ART 64. xxxx The action to revoke the donation under this
Article must be brought within ve years from the time the
decree of legal separation become nal.
Reconciliation
There should be joint manifestation under
oath of reconciliation to be filed in court
ART 65. If the spouses should reconcile, a corresponding joint
manifestation under oath duly signed by them shall be led
with the court in the same proceeding for legal separation.
Consequences of reconciliation
ART 66. The reconciliation shall have the following
consequences:
1) The legal separation proceedings, if still pending, shall
thereby be terminated at whatever stage; and
2) The nal decree of legal separation shall be set aside,
but the separation of property and any forfeiture
of the share of the guilty spouse already e ected
shall subsist, unless the spouses agree to revive their
former property regime.
The court's order containing the foregoing shall be recorded in
the proper civil registries.
Agreement to revive former property
regime must also be under oath
ART 67. The agreement to revive the former property regime
shall be executed under oath and shall specify:
1) The properties to be contributed anew to the restored
regime;
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2) Those to be retained as separated properties of each
spouse; and
3) The names of all their known creditors, their
addresses and the amounts owing to each.
E ect of Death
a) In case a party dies at any stage of proceedings BEFORE the
entry of judgment, the court shall order the case closed and
terminated without prejudice to the settlement of estate
proper proceedings in the regular courts.
b) If the party dies AFTER the entry of judgment, the same shall
be binding upon the parties and their successors in interest in
the settlement of the estate in the regular courts. (§21 AM No
02-11-11-SC)
D Rights and Obligations Between Spouse
Basic Obligations
ART 68. The husband and wife are obliged to live together,
observe mutual love, respect and delity, and render mutual
help and support.
Arroyo v. Vazquez de Arroyo
It is not within the province of the courts of this country to
attempt to compel one of the spouses to cohabit with, and
render conjugal rights to, the other. Of course where the
property rights of one of the pair are invaded, an action for
restitution of such rights can be maintained.
Reviewer
People v. Jumawan 2014 on Marital Rape
Husbands do not have property rights over their wives’ bodies.
Sexual intercourse, albeit within the realm of marriage, if not
consensual, is rape.
Fixing of the Domicile
ART 69. The husband and wife shall x the family domicile.
In case of disagreement, the court shall decide.
The court may exempt one spouse from living with the other
if the latter should live abroad or there are other valid and
compelling reasons for the exemption. However, such
exemption shall not apply if the same is not compatible with
the solidarity of the family.
Joint responsibility for the Support of the family
ART 70. The spouses are jointly responsible for the support
of the family. The expenses for such support and other
conjugal obligations shall be paid
1. from the community property and,
2. in the absence thereof, from the income or fruits of
their separate properties and,
3. in case of insu ciency or absence of said income or
fruits, from the separate properties.
Joint management of the household
ART 71. The management of the household shall be the right
and the duty of both spouses. The expenses for such
management shall be paid in accordance with the provisions of
Article 70.
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Application for relief from the court if one party commits acts
which will bring danger or dishonor to the family
ART 72. When one of the spouses neglects his or her duties to
the conjugal union or commits acts which tend to bring
danger, dishonor or injury to the other or to the family, the
aggrieved party may apply to the court for relief.
Objection on the exercise of profession
ART 73. Either spouse may exercise any legitimate profession,
occupation, business or activity without the consent of the
other. The latter may object only on valid, serious, and
moral grounds.
In case of disagreement, the court shall decide whether or not:
1) The objection is proper, and
2) Bene t has accrued to the family prior to the objection or
thereafter.
a) If the bene t accrued PRIOR to the objection, the
resulting obligation shall be enforced against the
community property.
b) If the bene t accrued THEREAFTER, such obligation
shall be enforced against the separate property of the
spouse who has not obtained consent.
E Property Relations Between Spouse
1 General provisions
ART 74. The property relationship between husband and wife
shall be governed in the following order:
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1) By marriage settlements executed before the
marriage;
2) By the provisions of this Code; and
3) By the local custom.
Types of regime that may be included and how modified
ART 75. The future spouses may, in the marriage settlements,
agree upon the regime of absolute community, conjugal
partnership of gains, complete separation of property, or
any other regime. In the absence of a marriage settlement, or
when the regime agreed upon is void, the system of absolute
community of property as established in this Code shall
govern.
Requisites for its validity
ART 76. In order that any modi cation in the marriage
settlements may be valid, it must be made BEFORE the
celebration of the marriage xxxx.
ART 77. The marriage settlements and any modi cation
thereof shall be
1. In writing;
2. Signed by the parties;
3. Executed before the celebration of marriage; and
4. Registered in the LCR and Registry of Properties.
Persons other than parties who must sign the marriage
settlement
ART 78. A minor who according to law may contract marriage
may also execute his or her marriage settlements, but they shall
Reviewer
be valid only if the persons designated in Article 14 to give
consent to the marriage are made parties to the agreement.
ART 79. For the validity of any marriage settlement executed
by a person
a) upon whom a sentence of civil interdiction has been
pronounced or
b) who is subject to any other disability,
it shall be indispensable for the guardian appointed by a
competent court to be made a party thereto.
Laws that governs marriage settlement (Nationality Theory)
ART 80. In the 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.
This rule shall not apply:
1) Where both spouses are aliens;
2) With respect to the extrinsic validity of contracts
a ecting property not situated in the Philippines and
executed in the country where the property is located;
and
3) With respect to the extrinsic validity of contracts
entered into in the Philippines but a ecting property
situated in a foreign country whose laws require
di erent formalities for its extrinsic validity.
Effects if marriage did not materialize
ART 81. Everything stipulated in the settlements or contracts
referred to in the preceding articles in consideration of a future
marriage, including donations between the prospective
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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.
2 Donations by reason of marriage
1) Must be made before the celebration of marriage;
2) Must be in consideration of marriage;
3) In favor of either or both of the future spouses.
Limitations on Donation Propter Nuptias
ART 84. If the future spouses agree upon a regime other than
the absolute community of property, they cannot donate to
each other in their marriage settlements more than one- fth
of their present property. Any excess shall be considered
VOID.
Donations of future property shall be governed by the
provisions on testamentary succession and the formalities of
wills.
Grounds for revocation of donation
ART 86. A donation by reason of marriage may be revoked by
the donor in the following cases:
1) If the marriage is not celebrated or judicially declared
void ab initio except donations made in the marriage
settlements, which shall be governed by Article 81;
2) When the marriage takes place without the consent
of the parents or guardian, as required by law;
3) When the marriage is annulled, and the donee acted
in bad faith;
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4) Upon legal separation, the donee being the guilty
spouse;
5) If it is with a resolutory condition and the condition
is complied with;
6) When the donee has committed an act of
ingratitude.
Void donations by the spouses
ART 87. Every donation or grant of gratuitous advantage,
direct or indirect, between the spouses during the marriage
shall be void, except moderate gifts which the spouses may
give each other on the occasion of any family rejoicing.
Matabuena v. Cervantes reiterated in Agapay v. Palang
WON the ban on a donation between the spouses during a
marriage applies to a common-law relationship.
YES. If the policy of the law is to prohibit donations in favor of the
other consort and his descendants because of fear of undue and
improper pressure and in uence upon the donor; then there is every
reason to apply the same prohibitive policy to persons living together
as husband and wife without bene t of nuptials.
Harding v. Commercial Union Assurance Co
Appellants are not in a position to challenge the validity of the
transfer, if it may be called such. They bore absolutely no relation
to the parties to the transfer at the time it occurred and had no
rights or interests inchoate, present, remote,or otherwise, in the
property in question at the time the transfer occurred. Although
Reviewer
certain transfers from husband to wife or from wife to husband are
prohibited in the article referred to, such prohibition can be taken
advantage of only by persons who bear such a relation to the parties
making the transfer or to the property itself that such transfer
interferes with their rights or interests. Unless such a relationship
appears the transfer cannot be attacked.
3 Absolute Community of Property
When it will commence
ART 88. The absolute community of property between
spouses shall commence at the precise moment that the
marriage is celebrated. Any stipulation, express or implied,
for the commencement of the community regime at any other
time shall be VOID.
What comprise the Community Property
ART 91. Unless otherwise provided in this Chapter or in the
marriage settlements, the community property shall consist of
all the property owned by the spouses at the time of the
celebration of the marriage or acquired thereafter.
What are excluded from the Community Property
ART 92. The following shall be excluded:
1) Property acquired during the marriage by gratuitous
title by either spouse, and the fruits as well as the income
thereof, if any, unless it is expressly provided by the donor,
testator or grantor that they shall form part of the
community property;
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2) Property for personal and exclusive use of either
spouse. However, jewelry shall form part of the
community property;
3) Property acquired before the marriage by either spouse
who has legitimate descendants by a former marriage,
and the fruits as well as the income, if any, of such
property.
Property acquired during marriage using exclusive money of
one spouse.
ART 93. Property acquired during the marriage is
presumed to belong to the community, unless it is proved that
it is one of those excluded therefrom.
Charges and Obligations of the ACP
ART 94. The ACP shall be liable for:
1) The support of the spouses, their common children,
and legitimate children of either spouse;
2) All debts and obligations contracted during the
marriage;
3) Debts and obligations to the extent that the family may
have been bene ted;
4) All taxes, liens, charges and expenses, including major
or minor repairs, upon the community property;
5) All taxes and expenses for mere preservation made
during marriage upon the separate property of either
spouse used by the family;
6) Expenses for self-improvement;
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7) Antenuptial debts insofar as they have redounded to
the bene t of the family;
8) The value of what is donated or promised by both
spouses in favor of their common legitimate children for
the exclusive purpose of self-improvement;
9) In case of absence or insufficiency of the exclusive
property of the debtor-spouse
a) Other antenuptial debts of either spouse,
b) the support of illegitimate children of either
spouse, and
c) liabilities incurred by either spouse by reason of a
crime or a quasi-delict,
the payment of which shall be considered as advances
to be deducted from the share of the debtor-spouse upon
liquidation of the community; and
10) Expenses of litigation between the spouses unless the
suit is found to be groundless.
If the community property is insu cient to cover the
foregoing liabilities, except those falling under paragraph (9),
the spouses shall be solidarily liable for the unpaid balance
with their separate properties.
Ayala Investment v. CA
From the jurisprudential rulings of the Court, we can derive the
following conclusions:
a) If the husband himself is the principal obligor in the
contract, i.e., he directly received the money and services to
be used in or for his own business or his own profession,
Reviewer
that contract falls within the term “x x x x obligations
for the benefit of the conjugal partnership.” Here, no
actual bene t may be proved. Simply stated, where the
husband contracts obligations on behalf of the family
business, the law presumes that such obligation will
redound to the benefit of the conjugal partnership.
b) On the other hand, if the money or services are given to
another person or entity, and the husband acted only as a
surety or guarantor, that contract cannot, by itself, alone
be categorized as falling within the context of “obligations
for the bene t of the conjugal partnership.”
No presumption can be inferred that, when a husband
enters into a contract of surety or accommodation
agreement, it is “for the bene t of the conjugal partnership.”
Proof must be presented to establish benefit
redounding to the conjugal partnership.
Ownership, Administration,
Enjoyment & Disposition of ACP
Husband and wife are joint administrator
ART 96. The administration and enjoyment of the
community property shall belong to both spouses jointly. In
case of disagreement, the husband's decision shall prevail,
subject to recourse to the court by the wife for proper remedy,
which must be availed of within ve years from the date of
the contract implementing such decision.
When the spouse can be the sole administrator?
In the event that one spouse is incapacitated or otherwise
unable to participate in the administration of the common
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properties, the other spouse may assume sole powers of
administration.
In the absence of authority or consent, the disposition or
encumbrance shall be void. However, the transaction shall be
construed as a continuing offer.
Neither spouse can dispose or donate a community property
without the consent of the other spouse.
ART 98. Neither spouse may donate any community property
without the consent of the other. However, either spouse may,
without the consent of the other, make moderate donations
from the community property for charity or on occasions of
family rejoicing or family distress.
The sale of a common property by one spouse only is VOID
PNB v. CA
The presumption of conjugality applies to property acquired
during the lifetime of the husband and wife. In this case, it
appears on the face of the title that the properties were acquired by
Donata Montemayor when she was already a widow. When the
property is registered in the name of a spouse only and there is no
showing as to when the property was acquired by said spouse, this is
an indication that the property belongs exclusively to said spouse.
And this presumption cannot prevail when the title is in the name of
only one spouse and the rights of innocent third parties are involved.
Docena v. Lapesura
Under the Family Code, the administration of the conjugal
property belongs to the husband and the wife jointly. However,
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unlike an act of alienation or encumbrance where the consent of
both spouses is required, joint management or administration does
not require that the husband and wife always act together.
The signing of the attached certi cate of non-forum shopping only
by the husband is not a fatal defect. If anybody may repudiate
the certi cation or undertaking for having been incorrectly
made, it is the wife who may conceivably do so.
Uy v. CA
In regular manner, the rules on summary judicial proceedings
under the Family Code govern the proceedings under Article 124.
Such rules do not apply to cases where the non-consenting spouse is
incapacitated or incompetent to give consent. In such case, the
proper remedy is a judicial guardianship proceedings under
Rule 93 of the 1964 Revised Rules of Court.
Villaranda v. Villaranda
Without the wife’s consent, the husband’s alienation or
encumbrance of conjugal property prior to the e ectivity of the
Family Code is not void, but merely voidable.
Jader-Manalo v. Camaisa, et al.
WON the husband may validly dispose of a conjugal property without
the wife’s written consent.
Article 124 of the Family Code requires that the disposition of a
conjugal property by the husband as administrator in appropriate
Reviewer
cases requires the written consent of the wife, otherwise, the
disposition is VOID. Respondent Norma may have been aware of
the negotiations for the sale of their conjugal properties. However,
being merely aware of a transaction is not consent.
It should be stressed that court authorization under Art. 124 is
only resorted to in cases where the spouse who does not give
consent is incapacitated.
Sps Carlos v. Tolentino 2018
The Court is disinclined to rule that the Deed of Donation is wholly
void ab initio and that the Spouses Carlos should be totally stripped
of their right over the subject property. In consonance with justice
and equity, We deem it proper to uphold the validity of the Deed of
Donation but only to the extent of Mercedes' one half share in the
subject property.
Dissolution of Absolute Community
Grounds for dissolution
ART 99. The absolute community terminates:
1) Upon the death of either spouse;
2) When there is a decree of legal separation;
3) When the marriage is annulled or declared void; or
4) In case of judicial separation of property during
the marriage under Articles 134 to 138.
Effect of de-facto separation on the ACP
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ART 100. The separation in fact between husband and wife
shall not a ect the regime of absolute community except
that:
1) The spouse who leaves the conjugal home or refuses
to live therein, without just cause, shall not have the
right to be supported;
2) When the consent of one spouse to any transaction
of the other is required by law, judicial authorization
shall be obtained in a summary proceeding;
3) In the absence of su cient community property, the
separate property of both spouses shall be solidarily
liable for the support of the family. The spouse
present shall, upon proper petition in a summary
proceeding, be given judicial authority to administer or
encumber any speci c separate property of the other
spouse and use the fruits or proceeds thereof to satisfy
the latter's share.
Effect of abandonment or failure to comply with his/her
obligation to the family.
ART 101. If a spouse without just cause abandons the other or
fails to comply with his or her obligations to the family, the
aggrieved spouse may petition the court
a) for receivership,
b) for judicial separation of property or
c) for authority to be the sole administrator of the
absolute community.
Meaning of abandonment?
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The spouse who has left the conjugal dwelling for a period of
three months or has failed within the same period to give any
information as to his or her whereabouts shall be prima facie
presumed to have no intention of returning to the conjugal
dwelling.
Liquidation of the Absolute Community
supra 2014
Noveras v. Noveras
As a general rule, any modification in the marriage
settlements must be made before the celebration of marriage.
An exception to this rule is allowed provided that the modi cation
is judicially approved and refers only to the instances provided in
Articles 66, 67, 128, 135 and 136 of the Family Code.
The grant of the judicial separation of the ACP automatically
dissolves the absolute community regime, as stated in the 4th
paragraph of Article 99 of the Family Code. Under Article 102,
liquidation follows the dissolution of the absolute
community regime and the following procedure should apply:
ART 102. Upon dissolution of the absolute community
regime, the following procedure shall apply:
1) An inventory shall be prepared.
2) The debts and obligations of the absolute
community shall be paid out of its assets. In case of
insu ciency, the spouses shall be solidarily liable
for the unpaid balance with their separate
properties.
3) Whatever remains of the exclusive properties shall
thereafter be delivered to each of them.
Reviewer
4) The net remainder of the properties of the
absolute community shall constitute its net assets,
which shall be divided equally, unless a di erent
proportion or division was agreed upon.
5) The presumptive legitimes of the common
children shall be delivered upon partition.
6) The conjugal dwelling and the lot shall be
adjudicated to the spouse with whom the
majority of the common children choose to
remain.
Effect if no liquidation is made after the death of a spouse on
the subsequent marriage of the surviving spouse
ART 103. Upon the termination of the marriage by death, the
community property shall be liquidated in the same proceeding
for the settlement of the estate of the deceased.
If no judicial settlement proceeding is instituted, the surviving
spouse shall liquidate the community property either judicially
or extra-judicially within 6 months from the death of the
deceased spouse. If upon the lapse of the six months period,
no liquidation is made, any disposition or encumbrance shall
be VOID.
Should the surviving spouse contract a subsequent marriage
without compliance with the foregoing requirements, a
Concept of Conjugal Partnership of Gains
mandatory regime of complete separation of property
shall govern the property relations of the subsequent marriage.
Quiao v. Quiao 2012
WON petitioner’s vested right over half of the common properties of
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the conjugal partnership violated when the trial court forfeited them in
favor of his children pursuant to Articles 63(2) and 129 of the Family
Code? NO.
While one may not be deprived of his “vested right,” he may
lose the same if there is due process and such deprivation is
founded in law and jurisprudence.
More, in Abalos v. Dr. Macatangay, Jr., we reiterated our
long-standing ruling that:
Prior to the liquidation of the conjugal partnership, the interest
of each spouse in the conjugal assets is inchoate, a mere
expectancy, which constitutes neither a legal nor an equitable
estate.
The net pro ts of the conjugal partnership of gains are all the
fruits of the separate properties of the spouses and the
products of their labor and industry.
As to the de nition of “net pro ts,” Article 102(4) of the Family
Code, provides that net pro ts “shall be the increase in value between
the market value of the community property at the time of the
celebration of the marriage and the market value at the time of its
dissolution.”
4 Conjugal Partnership of Gains
ART 105. In case the future spouses AGREE in the marriage
settlements that the regime of CPG shall govern their property
relations during marriage. xxxx
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ART 106. Under the regime of CPG, the husband and wife
place in a common fund the proceeds, products, fruits and
income from their separate properties and those acquired by
either or both spouses through their e orts or by chance, and,
upon dissolution of the marriage or of the partnership, the net
gains or bene ts obtained by either or both spouses shall be
divided equally between them, unless otherwise agreed in the
marriage settlements.
What are the exclusive properties of each spouse?
ART 109. The following shall be the exclusive property of
each spouse:
1) That which is brought to the marriage as his or her
Ownership, Enjoyment, and
own;
Administration of Exclusive Property
2) That which each acquires during the marriage by
What are the conjugal partnership properties?
gratuitous title;
3) That which is acquired by right of redemption, by
barter or by exchange with property belonging to
only one of the spouses; and
4) That which is purchased with exclusive money of
the wife or of the husband.
Real property acquired by a Filipina
wife of a foreigner is EXCLUSIVE
Matthews v. Taylor
The rule is clear and in exible: aliens are absolutely not allowed
to acquire public or private lands in the Philippines, save only in
constitutionally recognized exceptions. Considering that Joselyn
appeared to be the designated "vendee" in the Deed of Sale of said
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property, she acquired sole ownership thereto. This is true even if
we sustain Benjamin's claim that he provided the funds for such
acquisition.
Pacific Ace Finance v. Yanagisawa 2012
Eiji did not claim ownership of the Parañaque townhouse unit or his
right to consent to the REM as his basis for seeking its annulment.
Instead, Eiji invoked his right to rely on Evelyn’s commitment not to
dispose of or encumber the property, and the annotation of the said
commitment on the TCT.
ART 117. The following are conjugal partnership properties:
1) Those acquired by onerous title during the marriage at
the expense of the common fund, whether the acquisition
be for the partnership, or for only one of the spouses;
2) Those obtained from the labor, industry, work or
profession of either or both of the spouses;
3) The fruits, natural, industrial, or civil, due or received
during the marriage from the common property, as well as
the net fruits from the exclusive property of each
spouse;
4) The share of either spouse in the hidden treasure;
5) Those acquired through occupation such as shing or
hunting;
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6) Livestock existing upon the dissolution of the
partnership in excess of the number of each kind brought
to the marriage by either spouse; and
7) Those which are acquired by chance, such as winnings
from gambling or betting..
Dela Peña v. Avila 2012
Although it is not necessary to prove that the property was acquired
with funds of the partnership, proof of acquisition during the
marriage is an essential condition for the operation of the
presumption in favor of the conjugal partnership.
In the case Ruiz v. CA, this Court ruled that the phrase "married
to" is merely descriptive of the civil status of the wife and
cannot be interpreted to mean that the husband is also a
registered owner.
Rules to determine conjugality
Rule on property bought on installment by one spouse before the
marriage
ART 118. Property bought on installments paid partly from
exclusive funds of either or both spouses and partly from
conjugal funds belongs
a) to the buyer or buyers if full ownership was vested
BEFORE the marriage and
b) to the conjugal partnership if such ownership was
vested DURING the marriage.
In either case, any amount advanced by the partnership or by
either or both spouses shall be reimbursed by the owner or
owners upon liquidation of the partnership.
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Rule on amount received by one spouse during the marriage as
payment of credit
ART 119. Whenever an amount or credit payable within a
period of time belongs to one of the spouses, the sums which
may be collected during the marriage in partial payments or by
installments on the principal shall be the exclusive property
of the spouse.
However, interests falling due during the marriage on the
principal shall belong to the conjugal partnership.
Rule on ownership of improvements made by the conjugal
partnership on the exclusive property of one spouse
a) When the cost of the improvement and any resulting increase
in value are MORE than the value of the property, the entire
property shall belong to the conjugal partnership,
subject to reimbursement of the value of the property of
the owner-spouse; otherwise,
b) said property shall be retained in ownership by the
owner-spouse, likewise subject to reimbursement of the cost
of the improvement.
In either case, the ownership of the entire property shall be
vested upon the reimbursement, which shall be made at the
time of the liquidation of the conjugal partnership.
Muñoz, Jr. v. Ramirez, et al. 2010
As a general rule, all property acquired during the marriage,
whether the acquisition appears to have been made, contracted or
registered in the name of one or both spouses, is presumed to be
conjugal unless the contrary is proved.
Reviewer
In the present case, clear evidence that Erlinda inherited the
residential lot from her father has su ciently rebutted this
presumption of conjugal ownership. Pursuant to Articles 92 and
109 of the Family Code, properties acquired by gratuitous title by
either spouse, during the marriage, shall be excluded from the
community property and be the exclusive property of each
spouse. The residential lot, therefore, is Erlinda's exclusive
paraphernal property.
Wong v. IAC
While there is proof that Romarico acquired the properties with
money he had borrowed from an o cemate, it is unclear where he
obtained the money to repay the loan. If he paid it out of his
salaries, then the money is part of the conjugal assets and not
exclusively his. Proof on this matter is of paramount importance
considering that in the determination of the nature of a property
acquired by a person during coverture, the controlling factor is
the source of the money utilized in the purchase.
The conjugal nature of the properties notwithstanding, Katrina's
indebtedness may not be paid for with them, her obligation not
having been shown by the petitioners to be one of the charges
against the conjugal partnership. In addition to the fact that her
rights over the properties are merely inchoate prior to the liquidation
of the conjugal partnership, the consent of her husband and her
authority to incur such indebtedness had not been alleged in the
complaint and proven at the trial.
Lilius v. Manila Railroad Co.
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for the 2022 Bar
It appears that there are two distinct theories as to whether
damages arising from an injury suffered by one of the spouses
should be considered conjugal or separate property of the
injured spouse.
The theory holding that such damages should form part of the
conjugal partnership property is based wholly on the proposition
that by the injury, the earning capacity of the injured spouse is
diminished to the consequent prejudice of the conjugal partnership.
It is held that the sum of P10,000 with interest thereon awarded to
Sonja Maria Lilius as damages is paraphernal property.
Charges Upon and Obligations of the CPG
ART 121. The conjugal partnership shall be liable for:
1) The support of the spouse, their common children, and
the legitimate children of either spouse; however, the
support of illegitimate children shall be governed by the
provisions of this Code on Support;
2) All debts and obligations contracted during the
marriage;
3) Debts and obligations contracted by either spouse
without the consent of the other to the extent that the
family may have bene ted;
4) All taxes, liens, charges, and expenses, including major
or minor repairs upon the conjugal partnership property;
5) All taxes and expenses for mere preservation made
during the marriage upon the separate property of either
spouse;
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6) Expenses to enable either spouse to commence or
complete a professional, vocational, or other activity for
self-improvement;
7) Antenuptial debts of either spouse insofar as they have
redounded to the bene t of the family;
8) The value of what is donated or promised by both spouses
in favor of their common legitimate children for the
exclusive purpose of commencing or completing a
professional or vocational course or other activity for
self-improvement; and
9) Expenses of litigation between the spouses unless the
suit is found to be groundless.
If the conjugal partnership is insu cient to cover the
foregoing liabilities, the spouses shall be solidarily liable for
the unpaid balance with their separate properties.
Ros v. PNB 2011
Where the husband contracts obligations on behalf of the
family business, the law presumes, and rightly so, that such
obligation will redound to the bene t of the conjugal
partnership.
Thus, Ros' loan from PNB redounded to the bene t of the conjugal
partnership. Hence, the debt is chargeable to the conjugal
partnership.
Sps Buado v. CA and Nicol
Is the husband, who was not a party to the suit but whose conjugal
Reviewer
property is being executed on account of the other spouse being the
judgment obligor, considered a "stranger?"
Mariano v. CA and Sps Ching v. CA held that the husband of
the judgment debtor cannot be deemed a "stranger" to the case
prosecuted and adjudged against his wife for an obligation that has
redounded to the bene t of the conjugal partnership.
On the other hand, Naguit v. CA and Sy v. Discaya held that a
spouse is deemed a stranger to the action wherein the writ of
execution was issued and is therefore justi ed in bringing an
independent action to vindicate her right of ownership over his
exclusive or paraphernal property.
Unlike in the system of absolute community where liabilities
incurred by either spouse by reason of a crime or quasi-delict is
chargeable to the ACP, in the absence or insu ciency of the
exclusive property of the debtor-spouse, conjugal property cannot
be held liable for the personal obligation contracted by one
spouse, unless some advantage or bene t is shown to have
accrued to the conjugal partnership.
Francisco v. Gonzales
A wife may bind the conjugal partnership only
a) when she purchases things necessary for the support of the
family, or
b) when she borrows money for that purpose upon her
husband's failure to deliver the needed sum;
c) when administration of the conjugal partnership is
transferred to the wife by the courts or by the husband; or
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d) when the wife gives moderate donations for charity.
Failure to establish any of these circumstances means that the
conjugal asset may not be bound to answer for the wife's personal
obligation. Here, the liability incurred by Michele arose from a
judgment rendered in an unlawful detainer case against her and her
partner Matrai.
Alipio v. CA
A creditor cannot sue the surviving spouse of a decedent in an
ordinary proceeding for the collection of a sum of money chargeable
against the conjugal partnership and that the proper remedy is for
him to le a claim in the settlement of estate of the decedent.
Pana v. Heirs of Juanite, Sr., et.al. 2012
Post-marriage modi cation of marriage settlements can take
place only where:
a) the absolute community or conjugal partnership was
dissolved and liquidated upon a decree of legal separation;
b) the spouses who were legally separated reconciled and
agreed to revive their former property regime;
c) judicial separation of property had been had on the ground
that a spouse abandons the other without just cause or fails
to comply with his obligations to the family;
d) there was judicial separation of property under Article
135;
e) the spouses jointly led a petition for the voluntary
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dissolution of their absolute community or conjugal
partnership of gains.
None of these circumstances exists in the case of Efren and Melecia.
Melecia has no exclusive property of her own and thus, Article 122
of the Family Code applies. The civil indemnity that the
decision in the murder case imposed on her may be enforced
against their conjugal assets after the responsibilities
enumerated in Article 121 have been covered.
Contrary to Efren’s contention, Article 121 allows payment of
the criminal indemnities imposed on his wife, Melecia, out of the
partnership assets even before these are liquidated. No prior
liquidation of those assets is required.
Payment of Ante-nuptial debts of either spouse by the CPG.
What is its difference from the ACP?
ART 122. The payment of personal debts contracted by the
husband or the wife before or during the marriage shall not
be charged to the conjugal properties partnership except
insofar as they redounded to the benefit of the family.
However,
a) the payment of personal debts contracted by either
spouse before the marriage,
b) that of nes and indemnities imposed upon them,
c) as well as the support of illegitimate children of either
spouse,
may be enforced against the partnership assets
a) after the responsibilities enumerated in the preceding
Article have been covered,
Reviewer
b) if the spouse who is bound should have no exclusive
property or if it should be insu cient;
at the time of the liquidation of the partnership, such spouse
shall be charged for what has been paid for the purpose
above-mentioned.
Administration of the Conjugal Partnership
Sps Guiang v. CA
The sale of a conjugal property requires the consent of both
the husband and the wife. The absence of the consent of one
renders the sale null and void, while the vitiation thereof
makes it merely voidable. Only in the latter case can
rati cation cure the defect.
Here, private respondent’s consent to the contract of sale of
their conjugal property was totally inexistent or absent. Said
contract properly falls within the ambit of Article 124.
The nullity of the contract of sale is premised on the absence of
private respondent’s consent. Neither can the “amicable
settlement” be considered a continuing o er that was accepted
and perfected by the parties, following the last sentence of Art 124.
Sps Ravina v. Villa Abrille et al.
A sale or encumbrance of conjugal property concluded after the
e ectivity of the Family Code is governed by Article 124 of the
same Code that now treats such a disposition to be void if done
a) without the consent of both the husband and the wife, OR
b) in case of one spouse’s inability, the authority of the court.
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Roxas v. CA, et al.
WON a husband, as the administrator of the conjugal partnership,
may legally enter into a contract of lease involving conjugal real
property without the knowledge and consent of the wife.
NO. The joinder of the wife, although unnecessary for an oral
lease of conjugal realty which does not exceed one year in
duration, is required in a lease of conjugal realty for a period
of more than one year, such a lease being considered a conveyance
and encumbrance within the provisions of the Civil Code.
Sps Aggabao v. Parulan, Jr., et al. 2010
Under Article 124 of the Family Code, the transaction executed sans
the written consent of Dionisio or the proper court order was void;
hence, rati cation did not occur, for a void contract could not be
rati ed.
Article 124 categorically requires the consent of both spouses before
the conjugal property may be disposed of by sale, mortgage, or other
modes of disposition. Thus, the buyers of conjugal property
must observe two kinds of requisite diligence, namely:
a) the diligence in verifying the validity of the title covering
the property; and
b) the diligence in inquiring into the authority of the
transacting spouse to sell conjugal property on behalf of
the other spouse.
ART 125. Neither spouse may donate any conjugal partnership
property without the consent of the other. However, either
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spouse may, without the consent of the other, make
moderate donations from the conjugal partnership property
1) for charity or
2) on occasions of family rejoicing or
3) family distress.
Dissolution of the Conjugal Partnership
ART 126. The conjugal partnership terminates:
1) Upon the death of either spouse;
2) When there is a decree of legal separation;
3) When the marriage is annulled or declared void; or
4) In case of judicial separation of property during
the marriage under Articles 134 to 138.
ART 127. The separation in fact between husband and wife
shall not a ect the regime of conjugal partnership, except that:
1) The spouse who leaves the conjugal home or refuses
to live therein, without just cause, shall not have the
right to be supported;
2) When the consent of one spouse to any transaction of
the other is required by law, judicial authorization
shall be obtained in a summary proceeding;
3) In the absence of su cient conjugal partnership
property, the separate property of both spouses
shall be solidarily liable for the support. xxxx
ART 128. If a spouse without just cause abandons the other or
fails to comply with his or her obligation to the family, the
aggrieved spouse may petition the court
Reviewer
1) for receivership,
2) for judicial separation of property, or
3) for authority to be the sole administrator of the
conjugal partnership property, subject to such
precautionary conditions as the court may impose.
Quiao v. Quiao, supra 2012
On Conjugal Partnership Regime ART 129. Virtually same as
ACP
Liquidation of the Conjugal Partnership
ART 130. Same as ACP
Heirs of Go v. Servacio 2011
The disposition by sale of a portion of the conjugal property
by the surviving spouse without the prior liquidation
mandated by Article 130 of the Family Code is not necessarily
void if said portion has not yet been allocated by judicial or
extrajudicial partition to another heir of the deceased spouse.
At any rate, the requirement of prior liquidation does not
prejudice vested rights.
Article 130 is to be read in consonance with Article 105 of the
Family Code. Hence, any disposition of the conjugal property
after the dissolution of the conjugal partnership must be made
only AFTER the liquidation; otherwise, the disposition is void.
The appropriate recourse of co-owners in cases where their consent
were not secured in a sale of the entire property as well as in a sale
merely of the undivided shares of some of the co-owners is an action
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for PARTITION under Rule 69.
Domingo v. Sps Genaro 2016
Anastacio and Flora's conjugal partnership was dissolved
upon Flora's death.
In the case of Taningco v. Register of Deeds of Laguna, we held
that the properties of a dissolved conjugal partnership fall under the
regime of co-ownership among the surviving spouse and the heirs of
the deceased spouse until nal liquidation and partition. Thus,
Anastacio, as co-owner, cannot claim title to any speci c portion of
the conjugal properties without an actual partition being rst done
either by agreement or by judicial decree. Nonetheless, Anastacio
had the right to freely sell and dispose of his undivided
interest in the subject property.
Separation of property and administration of
5 common property by one spouse during the
marriage
ART 135. Any of the following shall be considered su cient
cause for judicial separation of property:
1) That the spouse of the petitioner has been sentenced
to a penalty which carries with it civil interdiction;
2) That the spouse of the petitioner has been judicially
declared an absentee;
3) That loss of parental authority of the spouse of
petitioner has been decreed by the court;
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4) That the spouse of the petitioner has abandoned the
latter or failed to comply with his or her obligations
to the family;
5) That the spouse granted the power of administration
in the marriage settlements has abused that power;
Effects of the decree of separation of property
and
6) That at the time of the petition, the spouses have
been separated in fact for at least one year and
reconciliation is highly improbable.
Voluntary separation — How is it done?
ART 136. The spouses may jointly file a verified petition
with the court for the voluntary dissolution of the absolute
Revival of the previous property regime
community or the conjugal partnership of gains, and for the
separation of their common properties.
Toda, Jr. v. CA
The separation of property is not e ected by the mere execution of
the contract or agreement of the parties, but by the decree of the
court approving the same. It, therefore, becomes e ective only
upon judicial approval, without which it is void.
Espinosa et al. v. Omaña 2011
Whether Omaña violated the Canon of Professional Responsibility in
the notarization of Marantal and Espinosa's "Kasunduan Ng
Paghihiwalay."
This Court has ruled that the extrajudicial dissolution of the
conjugal partnership without judicial approval is void. The
Reviewer
Court has also ruled that a notary public should not facilitate the
disintegration of a marriage and the family by encouraging the
separation of the spouses and extrajudicially dissolving the conjugal
partnership, which is exactly what Omaña did in this case.
ART 137. Once the separation of property has been decreed,
the absolute community or the conjugal partnership of gains
shall be liquidated in conformity with this Code.
During the pendency of the proceedings for separation of
property, the absolute community or the conjugal partnership
shall pay for the support of the spouses and their children.
1. Revival if separation is based on Art. 135 = Pars 1 - 6;
2. Revival if separation is based on Art. 136 = Par 7.
ART 141. The spouses may, in the same proceedings where
separation of property was decreed, le a motion in court for
a decree reviving the property regime that existed between
them before the separation of property in any of the following
instances:
1) When the civil interdiction terminates;
2) When the absentee spouse reappears;
3) When the court, being satis ed that the spouse
granted the power of administration in the marriage
settlements will not again abuse that power,
authorizes the resumption of said administration;
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4) When the spouse who has left the conjugal home
without a decree of legal separation resumes
common life with the other;
5) When parental authority is judicially restored to the
spouse previously deprived thereof;
6) When the spouses who have separated in fact for at
least one year, reconcile and resume common life; or
7) When after voluntary dissolution of the absolute
community of property or conjugal partnership has
been judicially decreed upon the joint petition of the
spouses, they agree to the revival of the former
property regime. No voluntary separation of
property may thereafter be granted.
The revival of the former property regime shall be governed by
Article 67.
6 Regime of separation of property
ART 144. Separation of property may refer to present or
future property or both. It may be total or partial. In the
latter case, the property not agreed upon as separate shall
pertain to the absolute community.
Both spouses shall bear the family expenses in proportion to their
income. Liability is solidary.
ART 146. Both spouses shall bear the family expenses in
proportion to their income, or, in case of insu ciency or
default thereof, to the current market value of their separate
properties.
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The liabilities of the spouses to creditors for family expenses
shall, however, be solidary.
7 Property regime of unions without marriage
⭐If no legal impediments to marry each other or the marriage
is void, the regime is CO-OWNERSHIP.
ART 147. When a man and a woman who are capacitated to
marry each other, live exclusively with each other as husband
and wife without the bene t of marriage or under a void
marriage, their wages and salaries shall be owned by them in
equal shares and the property acquired by both of them
through their work or industry shall be governed by the rules
on co-ownership.
In the absence of proof to the contrary, properties acquired
while they lived together shall be presumed to have been
obtained by their joint efforts, work or industry, and
shall be owned by them in equal shares. For purposes of this
Article, a party who did not participate in the acquisition by
the other party of any property shall be deemed to have
contributed jointly in the acquisition thereof if the former's
e orts consisted in the care and maintenance of the family and
of the household. xxxx
Diño v. Diño, supra 2011
Article 147 of the Family Code applies to union of parties who are
legally capacitated and not barred by any impediment to contract
marriage, but whose marriage is nonetheless void, such as petitioner
and respondent in the case before the Court. For Article 147 of the
Family Code to apply, the following elements must be present:
Reviewer
1. The man and the woman must be capacitated to marry
each other;
2. They live exclusively with each other as husband and
wife; and
3. Their union is without the bene t of marriage, or their
marriage is void.
In this case, petitioner's marriage to respondent was declared void
under Article 36 of the Family Code and not under Article 40 or 45.
The rules on co-ownership apply and the properties of the spouses
should be liquidated in accordance with the Civil Code provisions
on co-ownership. It is not necessary to liquidate the properties
of the spouses in the same proceeding for declaration of
nullity of marriage.
Salas Jr. v. Aguila, supra 2013
Here, the partition of the Discovered Properties as ordered by the
RTC and the CA should be sustained, but on the basis of
co-ownership and not on the regime of conjugal partnership of
gains.
Barrido v. Nonato 2014
Under this property regime, property acquired by both spouses
through their work and industry shall be governed by the rules on
equal co-ownership. Here, the former spouses both agree that
they acquired the subject property during the subsistence of their
marriage. Thus, it shall be presumed to have been obtained by their
By RGL
for the 2022 Bar
joint e orts, work or industry, and shall be jointly owned by them in
equal shares. Therefore, the subject property remains to be owned in
common by Nonato and Barrido, which should be divided in
accordance with the rules on co-ownership.
⭐Paterno v. Arcaya-Chua 2017
What are the common properties included in the dissolution
of the co-ownership?
Petitioner should be reminded of the legal e ect of a con rmation of
a void ab initio marriage: it is retroactive to the time when the
marriage ceremony transpired. In short, after the trial court declared
her marriage to Mr. Paterno void in 2005 because of both parties'
psychological incapacity, the marriage ceremony on December 27,
1987 was invalidated as if no marriage took place. This means then
that during their ten-year cohabitation, Ms. Lomongo and Mr.
Paterno lived together merely as common-law spouses. This is where
Article 147 comes in.
ART 148. In cases of cohabitation not falling under the
preceding Article, only the properties acquired by both of the
parties through their actual joint contribution of money,
property, or industry shall be owned by them in common in
proportion to their respective contributions. In the
absence of proof to the contrary, their contributions and
corresponding shares are presumed to be equal. The same
rule and presumption shall apply to joint deposits of money
and evidences of credit.
If one of the parties is validly married to another, his or her
share in the co-ownership shall accrue to the absolute
community or conjugal partnership existing in such valid
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marriage. If the party who acted in bad faith is not validly

married to another, his or her shall be forfeited in the
manner provided in the last paragraph of the preceding
Article.
The foregoing rules on forfeiture shall likewise apply even if
both parties are in both faith.
Nicdao Cariño v. Cariño, supra
Article 148 of the Family Code refers to the property regime of
bigamous marriages, adulterous relationships, relationships in
a state of concubine, relationships where both man and
woman are married to other persons, multiple alliances of the
same married man.
Thus, one-half of the subject "death bene ts" under scrutiny
shall go to the petitioner as her share in the property regime,
and the other half pertaining to the deceased shall pass by, intestate
succession, to his legal heirs, namely, his children with Susan Nicdao.
Mercado-Fehr v. Fehr
This case arose from a petition for declaration of nullity of marriage
on the ground of psychological incapacity.
The crux of the petition is the ownership of Suite 204 of LCG
Condominium and how the properties acquired by petitioner and
respondent should be partitioned.
Suite 204 was acquired during the parties' cohabitation. Accordingly,
under Article 147 of the Family Code, said property should be
governed by the rules on co-ownership.
Lavadia v. Heirs of Luna, supra 2014 d. relationships where both man and woman are married
to other persons,
Article 148 provided that: only the property acquired by both of
the parties through their actual joint contribution of money, e. multiple alliances of the same married man.
property or industry shall be owned in common and in proportion
to their respective contributions. Such contributions and F Family Home
corresponding shares were prima facie presumed to be equal.
Concept of Family Home
However, for this presumption to arise, proof of actual
contribution was required. The same rule and presumption was ART 152. The family home, constituted jointly by the husband
to apply to joint deposits of money and evidence of credit. and the wife or by an unmarried head of a family, is the
dwelling house where they and their family reside, and the
IN SUMMARY land on which it is situated.
1. The key to determine whether to apply Art 147 or 148: When is it deemed constituted
LEGAL CAPACITY.
ART 153. The family home is deemed constituted on a house
a. With LC, Art 147;
and lot from the time it is occupied as a family residence. From
b. Without LC, Art 148. the time of its constitution and so long as any of its
bene ciaries actually resides therein, the family home
2. The following void marriages fall under Art 147 on
continues to be such and is exempt from execution, forced sale
ABSOLUTE CO-OWNERSHIP:
or attachment except as hereinafter provided and to the extent
a. Arts 36, 44, 53; of the value allowed by law.
b. Absence of consent; ART 161. For purposes of availing of the bene ts of a family
c. Lack of authority of solemnizing o cer; home, a person may constitute, or be the bene ciary of, only
ONE family home.
d. Lack of valid marriage license;
e. Absence of marriage ceremony. Modequillo v. Breva
3. Article 148 on CO-OWNERSHIP based on ACTUAL
Article 162 does not state that the provisions of Chapter 2, Title V
CONTRIBUTION refers to the property regime of
have a retroactive e ect.
a. bigamous marriages,
Is the family home of petitioner exempt from execution of the money
b. adulterous relationships, judgment aforecited? NO. The debt or liability which was the basis
c. relationships in a state of concubine, of the judgment arose or was incurred at the time of the vehicular

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accident in 1976 and the money judgment arising therefrom was
rendered by the appellate court in January 1988. Both preceded the
e ectivity of the Family Code on August 3, 1988. This case does not
fall under the exemptions from execution provided in the Family
Code.
Disposition and encumbrance of a family home
Beneficiaries of family home
ART 154. The bene ciaries of a family home are:
1) The husband and wife, or an unmarried person who
is the head of a family; and
2) Their parents, ascendants, descendants, brothers
and sisters, whether the relationship be legitimate or
illegitimate, who are living in the family home and
who depend upon the head of the family for
legal support.
Continuance of the family home despite the death of the owner
Advantages of a family home is that it is exempt from execution,
forced sale and attachment. Exceptions to the rule
ART 155.
1) For nonpayment of taxes;
2) For debts incurred prior to the constitution of the
family home;
3) For debts secured by mortgages on the premises
before or after such constitution; and
4) For debts due to laborers, mechanics, architects,
builders, materialmen and others who have rendered
service or furnished material for the construction of
the building.
Limitations on the value of family home
Reviewer
ART 157. The actual value of the family home shall not
exceed, at the time of its constitution, the amount of the
PHP300K three hundred thousand pesos in urban areas,
and PHP200K two hundred thousand pesos in rural areas,
or such amounts as may hereafter be xed by law.
ART 158. The family home may be sold, alienated, donated,
assigned or encumbered by the owner or owners thereof with
the written consent of
a) the person constituting the same,
b) the latter's spouse, and a
c) majority of the bene ciaries of legal age.
In case of con ict, the court shall decide.
ART 159. The family home shall continue despite the death of
one or both spouses or of the unmarried head of the family for
a period of 10 years or for as long as there is a minor
bene ciary, and the heirs cannot partition the same unless
the court nds compelling reasons therefor. This rule shall
apply regardless of whoever owns the property or constituted
the family home.
Ramos v. Pangilinan 2010
For family homes constructed AFTER the e ectivity of the Family
Code, there is no need to constitute extrajudicially or judicially,
and the exemption is e ective from the time it was constituted and
lasts as long as any of its bene ciaries under Art. 154 actually resides
therein. The debts incurred for which the exemption does not
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apply as provided under Art. 155 for which the family home is made
answerable must have been incurred after August 3, 1988.
And in both cases, whether under the Civil Code or the Family
Code, it is not su cient that the person claiming exemption merely
alleges that such property is a family home. This claim for
exemption must be set up and proved.
Manacop v. CA
The law explicitly provides that occupancy of the family home
either by the owner thereof or by “any of its bene ciaries”
must be actual. That which is “actual” is something real, or
actually existing, as opposed to something merely possible, or to
something which is presumptive or constructive. Actual occupancy,
however, need not be by the owner of the house speci cally. Rather,
the property may be occupied by the “bene ciaries” enumerated by
Article 154.
This enumeration may include the in-laws where the family home is
constituted jointly by the husband and wife. But the law de nitely
excludes maids and overseers.
Sps Versola v. CA and Sps De Mesa v. Sps Acero 2012
WON petitioners timely raised and proved that their property is
exempt from execution.
The settled rule is that the right to exemption or forced sale under
Article 153 of the Family Code is a personal privilege granted
to the judgment debtor and as such, it must be claimed not by
the sheri , but by the debtor himself before the sale of the property
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at public auction.
Eulogio et al. v. Bell, Sr. et al. 2015
Re-litigating the issue of the value of respondents' family
home is barred by res judicata.
The issue of whether the property in dispute exceeded the statutory
limit of P300,000 has already been determined with nality by
the trial court. Its nding necessarily meant that the property is
exempt from execution.
Respondents' family home cannot be sold on execution under
Article 160 of the Family Code.
To warrant the execution sale of respondents' family home under
Article 160, petitioners needed to establish these facts:
1) there was an increase in its actual value;
2) the increase resulted from voluntary improvements on
the property introduced by the persons constituting the
family home, its owners or any of its bene ciaries; and
3) the increased actual value exceeded the maximum allowed
under Article 157.
Arriola v. Arriola
It being settled that the subject house (and the subject lot on which
it stands) is the family home of the deceased and his heirs, the same is
shielded from immediate partition under Article 159 of FC.
Decedent Fidel died on March 10, 2003. Thus, for 10 years from said
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date or until March 10, 2013, or for a longer period, if there is still a incurred prior to the constitution of the family home.
minor bene ciary residing therein, the family home he constituted
cannot be partitioned, much less when no compelling reason exists
for the court to otherwise set aside the restriction and order the G Paternity and Filiation
partition of the property.
ART 163. The liation of children may be by nature or by
adoption. Natural liation may be legitimate or
Patricio v. Dario III illegitimate.
To be a bene ciary of the family home, three requisites must 1 Legitimate children
concur:
Meaning of legitimate child
1) they must be among the relationships enumerated in Art.
154 of the Family Code; ART 164. Children conceived or born during the marriage
of the parents are legitimate.
2) they live in the family home; and
For a child conceived through arti cial insemination to be
3) they are dependent for legal support upon the head of
considered legitimate, the following elements must concur:
the family.
1) Both spouses authorized it in writing;
As to the third requisite, Marcelino IV cannot demand support from
his paternal grandmother if he has parents who are capable of 2) If the husband had no knowledge, he rati es later upon
supporting him. Thus, Marcelino IV cannot be considered a knowledge;
bene ciary. With this nding, there is no legal impediment to
3) The instrument containing the agreement must be executed
partition the subject property.
before the birth of the child;
4) The instrument shall be recorded in the civil registry together
with the birth of the child.
Gomez v. Sta. Ines
ART 165. Children conceived and born outside a valid
Marietta's liability, which was the basis of the judgment, arose long
marriage are illegitimate, unless otherwise provided in this
before the levied property was constituted as a family home by
Code.
operation of law in August 1988. Thus, the liability incurred by
Marietta falls squarely under one of the instances when a family ART 167. The child shall be considered legitimate although the
home may be the subject of execution, forced sale, or attachment, as mother may have declared against its legitimacy or may have
provided for by Article 155, particularly, to answer for debts been sentenced as an adulteress.
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Grounds to impugn the legitimacy of the child
ART 165. Legitimacy of a child may be impugned only on
the following grounds:
1) That it was physically impossible for the husband to
have sexual intercourse with his wife within the rst 120
days of the 300 days which immediately preceded the
birth of the child because of:
a) the physical incapacity of the husband to have
sexual intercourse with his wife;
b) the fact that the husband and wife were living
separately in such a way that sexual intercourse
was not possible; or
c) serious illness of the husband, which
absolutely prevented sexual intercourse;
2) That it is proved that for biological or other scienti c
reasons, the child could not have been that of the
husband, except with regard to Article 164(2); or
3) That in case of children conceived through arti cial
insemination, the written authorization or
rati cation of either parent was obtained through
mistake, fraud, violence, intimidation, or undue in uence.
ART 168. If the marriage is terminated and the mother
contracted another marriage within three hundred days
after such termination of the former marriage, these rules shall
govern in the absence of proof to the contrary:
1) A child born before 180 days after the solemnization
of the subsequent marriage is considered to have been
conceived during the former marriage, provided it be
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born within 300 days after the termination of the former
child born after the dissolution of a prior marriage or the separation
marriage;
of the spouses must introduce such evidence to prove his or her
2) A child born after 180 days following the celebration allegation.
of the subsequent marriage is considered to have been
conceived during such marriage, even though it be born
within the 300 days after the termination of the former Andal v. Macaraig
marriage.
Impossibility of access by husband to wife would include
ART 169. The legitimacy or illegitimacy of a child born after
three hundred days following the termination of the 1) absence during the initial period of conception,
marriage shall be proved by whoever alleges such legitimacy or 2) impotence which is patent, continuing and incurable, and
illegitimacy.
3) imprisonment, unless it can be shown that cohabitation
took place through corrupt violation of prison regulations.
Tan v. Trocio
Experience shows that tuberculosis does not prevent carnal
Jewel Tan was born in 1972, during wedlock of Complainant and intercourse.
her husband and the presumption should be in favor of
legitimacy unless physical access between the couple was impossible.
From the evidence on hand, that presumption has not been overcome
Agustin v. CA
by adequate and convincing proof.
Even if the assailed resolution and order e ectively integrated an
action to compel recognition with an action for support, such was
valid and in accordance with jurisprudence. In Tayag v. CA, we
Arbolario v. CA
allowed the integration of an action to compel recognition with
Once a valid marriage is established, it is deemed to continue an action to claim one’s inheritance.
until proof that it has been legally ended is presented. Thus,
We take this opportunity to forcefully reiterate our stand that DNA
the mere cohabitation of the husband with another woman
testing is a valid means of determining paternity.
will not give rise to a presumption of legitimacy in favor of the
children born of the second union, until and unless there be
convincing proof that the rst marriage had been lawfully
terminated; and the second, lawfully entered into. Herrera v. Alba
There is no presumption of legitimacy or illegitimacy in this Filiation proceedings are usually led not just to adjudicate
jurisdiction; and whoever alleges the legitimacy or illegitimacy of a
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paternity but also to secure a legal right associated with paternity,
such as citizenship, support, or inheritance. There are four
signi cant procedural aspects of a traditional paternity action
which parties have to face:
1. a prima facie case,
2. a rmative defenses,
3. presumption of legitimacy, and
4. physical resemblance between the putative father and child.
A prima facie case exists if a woman declares that she had sexual
relations with the putative father. In our jurisdiction, corroborative
proof is required to carry the burden forward and shift it to the
putative father. There are two a rmative defenses available to the
putative father.
1. Incapability of sexual relations with the mother, because of
either physical absence or impotency; OR
2. That the mother had sexual relations with other men at the
time of conception.
A child born to a husband and wife during a valid marriage is
presumed legitimate. Finally, physical resemblance between the
putative father and child may be o ered as part of evidence of
paternity.
DNA analysis that excludes the putative father from paternity
should be conclusive proof of non-paternity. If the value of W is less
than 99.9%, the results of the DNA analysis should be considered as
corroborative evidence. If the value of W is 99.9% or higher, then
there is refutable presumption of paternity.
Reviewer
Estate of Ong v. Diaz
The New Rules on DNA Evidence allows the conduct of DNA
testing, either motu proprio or upon application of any person who
has a legal interest in the matter in litigation. The death of the
petitioner does not ipso facto negate the application of DNA testing
for as long as there exist appropriate biological samples of his DNA.
Surposa Uy v. Ngo Chua
It is settled, then, in law and jurisprudence, that the status and
liation of a child cannot be compromised. Being contrary
to law and public policy, the Compromise Agreement between
petitioner and respondent is void ab initio.
Concepcion v. CA
Gerardo invokes Article 166 (1)(b) of the Family Code. He cannot.
He has no standing in law to dispute the status of Jose Gerardo.
Only Ma. Theresa's husband Mario or, in a proper case, his heirs,
who can contest the legitimacy of the child Jose Gerardo born to his
wife. Impugning the legitimacy of a child is a strictly personal right
of the husband or, in exceptional cases, his heirs. The presumption
of legitimacy proceeds from the sexual union in marriage,
particularly during the period of conception. Here, the
separation between Ma. Theresa and her lawful husband, Mario, was
certainly not such as to make it physically impossible for them to
engage in the marital act.
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Gotardo v. Buling 2012
One can prove liation, either legitimate or illegitimate, through
a) the record of birth appearing in the civil register or a nal
judgment,
b) an admission of liation in a public document or a private
handwritten instrument and signed by the parent
concerned, or
c) the open and continuous possession of the status of a
legitimate or illegitimate child, or
d) any other means allowed by the Rules of Court and special
laws.
Who can impugn the legitimacy of the child
ART 170. The action to impugn the legitimacy of the child
shall be brought within 1 year from the knowledge of the
birth or its recording in the civil register, if the husband
or, in a proper case, any of his heirs, should reside in the city or
municipality where the birth took place or was recorded.
If the husband or, in his default, all of his heirs do not reside at
the place of birth as de ned in the rst paragraph or where it
was recorded, the period shall be 2 years if they should
reside in the Philippines; and 3 years if abroad.
If the birth of the child has been concealed from or was
unknown to the husband or his heirs, the period shall be
counted from the discovery or knowledge of the birth of
the child or of the fact of registration of said birth,
whichever is earlier.
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ART 171. The heirs of the husband may impugn the liation
of the child within the period prescribed in the preceding
article only in the following cases:
1) If the husband should die before the expiration of the
period xed for bringing his action;
2) If he should die after the ling of the complaint
without having desisted therefrom; or
3) If the child was born after the death of the husband.
De Jesus v. Dizon
The due recognition of an illegitimate child in a record of
birth, a will, a statement before a court of record, or in any
authentic writing is, in itself, a consummated act of
acknowledgment of the child, and no further court action is
required. In fact, any authentic writing is treated as not just a
ground for compulsory recognition; it is in itself a voluntary
recognition that does not require a separate action for judicial
approval. Where, instead, a claim for recognition is predicated
on other evidence merely tending to prove paternity, judicial
action within the applicable statute of limitations is essential
in order to establish the child's acknowledgment.
Succinctly, in an attempt to establish their illegitimate liation
to the late Juan G. Dizon, petitioners, in e ect, would impugn
their legitimate status as being children of Danilo de Jesus and
Carolina Aves de Jesus. This step cannot be aptly done because the
law itself establishes the legitimacy of children conceived or born
during the marriage of the parents.
Reviewer
Liyao v. Liyao
It is settled that the legitimacy of the child can be impugned
only in a DIRECT action brought for that purpose, by the
proper parties and within the period limited by law.
Babiera v. Catotal
A birth certi cate may be ordered cancelled upon adequate
proof that it is ctitious. Thus, void is a certi cate which shows
that the mother was already fty-four years old at the time of the
child's birth and which was signed neither by the civil registrar nor
by the supposed mother. The present action involves the
cancellation of petitioner's Birth Certi cate; it does not impugn her
legitimacy. Thus, the prescriptive period set forth in Article 170 of
the Family Code does not apply. Verily, the action to nullify the
Birth Certificate does not prescribe, because it was allegedly void
ab initio.
San Juan Geronimo v. Santos 2015
We do not agree with the conclusion of both courts a quo. The
appellate court itself ruled that the irregularities consisting of the
superimposed entries on the date of birth and the name of the
informant made the document questionable. These irregularities
and the totality of the circumstances surrounding the alleged birth
of respondent are su cient to overthrow the presumption of
regularity attached to respondent's birth certi cate.
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2 Proof of liation
ART 172. The liation of legitimate children is established by
any of the following:
1) Primary Proofs
a. Record of birth;
b. Admission in a public document or a private
handwritten instrument signed by the parent.
Mariategui v. CA
Evidence on record proves the legitimate liation of the private
respondents. Jacinto's birth certi cate is a record of birth. In the case
of Julian and Paulina, they may not have presented in evidence any
of the documents required by Article 172 but they continuously
enjoyed the status of children of Lupo Mariategui in the same
manner as their brother Jacinto.
Thus, private respondents are legitimate children and heirs of
Lupo and therefore, the time limitation prescribed in Article 285 for
ling an action for recognition is inapplicable to this case.
2) Secondary Proofs
a. Open and continuous possession of the status of
a legitimate child;
b. Any other means allowed by the Rules of Court.
Berciles v. GSIS
The rule is that although the baptismal record of a natural child
describes her as a child of the decedent, yet, if in the preparation of
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the record the decedent had no intervention, the baptismal record
cannot be held to be a voluntary recognition of parentage. There is
jurisprudence that a typewritten letter signed by the father is
not an authentic writing.
Calimag v. Heirs of Macapaz 2016
The petitioner's assertion that the birth certi cate must be signed by
the father in order to be a competent evidence of legitimate liation
does not nd support in law and jurisprudence. Only in the
registration of birth of an illegitimate child does the law require
that the birth certi cate be signed and sworn to jointly by the
parents of the infant, or only by the mother if the father refuses to
acknowledge the child.
Aguilar v. Siasat 2015
Alfredo Aguilar’s SSS Form E-1 satis es the requirement for proof
of liation and relationship to the Aguilar spouses under Article 172
of the Family Code; by itself, said document constitutes an
“admission of legitimate liation in a public document or a private
handwritten instrument and signed by the parent concerned.”
Such due recognition in any authentic writing is, in itself, a
consummated act of acknowledgment of the child, and no further
court action is required.
Reyes v. CA
Since Irene was already of age (35 years old) when her alleged father
Reviewer
died, and she had not presented any discovered document wherein
her presumed father recognized her, the action to compel
recognition is already barred.
re Private Handwritten
San Juan De la Cruz v. Gracia
Instruments
1) Where the private handwritten instrument is the lone piece of
evidence submitted to prove liation, there should be strict
compliance with the requirement that the same must be signed
by the acknowledging parent; and
2) Where the private handwritten instrument is accompanied by
other relevant and competent evidence, it su ces that the
claim of liation therein be shown to have been made and
handwritten by the acknowledging parent as it is merely
corroborative of such other evidence.
Mendoza v. CA
"Continuous" does not mean that the concession of status shall
continue forever but only that it shall not be of an intermittent
character while it continues. There must be a showing of the
permanent intention of the supposed father to consider the child as
his own, by continuous and clear manifestation of paternal a ection
and care.
Although Teopista has failed to show that she was in open and
continuous possession of the status of an illegitimate child of
Casimiro, we nd that she has nevertheless established that status
by another method.
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Ong v. CA
While Saturnina Caballes testi ed that she and Manuel Ong lived
together for four months as husband and wife in order to justify a
nding of cohabitation, the relationship was not open and
public so as to constitute cohabitation. While the parties are not
required to hold themselves out as husband and wife, neither must
they act clandestinely or secretly, otherwise they will be considered to
have merely engaged in illicit sexual intercourse.
Sps Alcantara v. Sps Belen 2017
In Bagayas v. Bagayas, this Court reiterated that courts must
refrain from making a declaration of heirship in an ordinary civil
action because "matters relating to the rights of liation and heirship
must be ventilated in a special proceeding instituted precisely for
the purpose of determining such rights." Straightforwardly, the CA
is precluded from determining the issue of liation in a
proceeding for the quieting of title and accion reivindicatoria.
Locsin v. Locsin
A Certi cate of Live Birth duly recorded in the Local Civil Registry,
a copy of which is transmitted to the Civil Registry General, is prima
facie evidence of the facts therein stated. However, if there are
material discrepancies between them, the one entered in the Civil
Registry General prevails.
Action to claim legitimacy – Prescriptive period
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ART 173. The action to claim legitimacy may be brought by
the child during his or her lifetime and shall be transmitted to
the heirs should the child die during minority or in a state of
insanity. In these cases, the heirs shall have a period of 5 years
within which to institute the action.
3 Illegitimate children
ART 175. Illegitimate children may establish their illegitimate
liation in the same way and on the same evidence as
legitimate children.
The action must be brought within the same period speci ed
in Article 173, except when the action is based on the second
paragraph of Article 172, in which case the action may be
brought during the lifetime of the alleged parent.
Ara v. Pizarro 2017
In this case, although the petitioners also presented the birth
certi cate of Garcia, the same could not be given great weight by the
Court because it is very questionable as it was a product of a delayed
registration. It was registered only in 2003 or after the death of the
alleged parent, Josefa Ara.
Tayag v. CA
In Paulino, we held that an illegitimate child, to be entitled to
support and successional rights from the putative or presumed
parent, must prove his liation to the latter. We also said that it is
necessary to allege in the complaint that the putative father had
acknowledged and recognized the illegitimate child because such
Reviewer
acknowledgment is essential to and is the basis of the right to inherit.
There being no allegation of such acknowledgment, the action
becomes one to compel recognition which cannot be brought
after the death of the putative father.
Potenciano v. Reynoso
The due recognition of an illegitimate child in a record of birth, a
will, a statement before a court of record, or in any authentic writing
is, in itself, a consummated act of acknowledgment of the child, and
no further court action is required. Under the Family Code,
liation may likewise be established by holographic as well as
notarial wills, except that they no longer need to be probated or to
be strictly in conformity with the formalities thereof for purposes of
establishing liation.
Bernabe v. Alejo
The right to seek recognition granted by the Civil Code to
illegitimate children who were still minors at the time the Family
Code took e ect cannot be impaired or taken away. The minors have
up to four years from attaining majority age within which to
le an action for recognition.
The crucial issue to be resolved therefore is whether Adrian’s right to
an action for recognition, which was granted by Article 285 of the
Civil Code, had already vested prior to the enactment of the Family
Code. Our answer is a rmative. We hold that Article 285 of the
Civil Code is a substantive law, as it gives Adrian the right to le
his petition for recognition within four years from attaining majority
age. Therefore, the Family Code cannot impair or take Adrian’s
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right to le an action for recognition, because that right had
already vested prior to its enactment.
Abella v. Cabañero 2017
When " liation is beyond question, support follows as a matter of
obligation." To establish liation, an action for compulsory
recognition may be led against the putative father ahead of an
action for support. In the alternative, an action for support may
be directly led, where the matter of liation shall be
integrated and resolved.
ART 176. Illegitimate children shall use the surname and shall
be under the parental authority of their mother, and shall be
entitled to support in conformity with this Code. However,
illegitimate children may use the surname of their father if
their liation has been expressly recognized by the
father
1. through the record of birth appearing in the civil
register, or
2. when an admission in a public document or
3. private handwritten instrument is made by the father.
Provided, the father has the right to institute an action before
the regular courts to prove non- liation during his lifetime.
(as amended by RA No 9255)
Grande v. Antonio 2014 En Banc
The general rule is that an illegitimate child shall use the surname
of his or her mother. The exception provided by RA 9255 is, in case
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his or her liation is expressly recognized by the father through the
record of birth appearing in the civil register or when an admission
in a public document or private handwritten instrument is made by
the father. In such a situation, the illegitimate child may use the
surname of the father.
Is there a legal basis for the court a quo to order the change of the
surname to that of respondent? Clearly, there is none. Art. 176 gives
illegitimate children the right to decide if they want to use the
surname of their father or not. It is not the father or the
mother who is granted by law the right to dictate the surname of
their illegitimate children.
4 Legitimated children
Concept
ART 177. Children conceived and born outside of wedlock of
parents who, at the time of conception of the former, were not
disquali ed by any impediment to marry each other, or were
so disquali ed only because either or both of them were below
eighteen (18) years of age, may be legitimated. (as amended
by RA No 9858)
ART 178. Legitimation shall take place by a subsequent valid
marriage between parents. The annulment of a voidable
marriage shall not affect the legitimation.
Requisites
1) The child was born AND conceived outside of wedlock;
2) The parents do not su er any legal impediments, aside from
minority, to marry each other at the time of the conception
of the child;
Reviewer
3) The parents subsequently enter into a valid marriage.
Abadilla v. Tabiliran
Despite his subsequent marriage to Priscilla, these three children
cannot be legitimated nor in any way be considered legitimate
since at the time they were born, there was an existing valid
marriage between respondent and his rst wife.
De Santos v. Angeles
How are the offspring of the second union affected by the first wife's
death and the ensuing celebration of a valid marriage between her
widower and his ostensible second wife? Natural children by legal
ction cannot be legitimized in this fashion.
Who can impugn legitimation and when?
ART 182. Legitimation may be impugned only by those who
are prejudiced in their rights, within 5 years from the time
their cause of action accrues.
Effects of legitimation
ART 180. The e ects of legitimation shall retroact to the
time of the child's birth.
Posthumous legitimation
ART 181. The legitimation of children who died before the
celebration of the marriage shall bene t their descendants.
H Adoption
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Adoption is de ned as the process of making a child, whether
related or not to the adopter, possess in general, the rights accorded
to a legitimate child.
It is a juridical act, a proceeding in rem which creates between two
persons a relationship similar to that which results from legitimate
paternity and liation.
Domestic Adoption
1
Domestic Adoption Act of 1998
a Who may adopt
A. Filipino. — at least sixteen (16) years older than the adoptee.
The requirement of sixteen (16) year di erence between the age of
the adopter and adoptee may be waived when the adopter is the
biological parent of the adoptee, or is the spouse of the adoptee's
parent.
B. Foreigners
Any alien possessing the same quali cations as for Filipino
nationals: Provided,
1. That his/her country has diplomatic relations with the
Republic of the Philippines,
2. that he/she has been living in the Philippines for at least
three (3) continuous years prior to the ling of the
application for adoption and maintains such residence until
the adoption decree is entered,
3. that he/she has been certi ed by his/her diplomatic or
consular o ce or any appropriate government agency that
he/she has the legal capacity to adopt in his/her country, and
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4. that his/her government allows the adoptee to enter his/her
country as his/her adopted son/daughter:
Exemption from the 3 years residence
requirements for foreigners
1. a former Filipino citizen who seeks to adopt a relative within
the fourth (4th) civil degree; or
2. one who seeks to adopt the legitimate son/daughter of his/her
Filipino spouse; or
3. one who is married to a Filipino citizen and seeks to adopt
jointly with his/her spouse a relative within the fourth (4th)
degree of consanguinity or a nity of the Filipino spouse.
C. The guardian with respect to the ward after the termination of
the guardianship and clearance of his/her nancial
accountabilities.
JOINT ADOPTION of Husband and Wife if adapter is married
except in the following cases:
1. if one spouse seeks to adopt the legitimate son/daughter of
the other; or
2. if one spouse seeks to adopt his/her own illegitimate
son/daughter: Provided, However, that the other spouse has
signi ed his/her consent thereto; or
3. if the spouses are legally separated from each other.
Republic v. Toledano
Evelyn may appear to qualify pursuant to paragraph 3(a) of Article
184 of E.O. 209. She was a former Filipino citizen. She sought to
adopt her younger brother. Unfortunately, the petition for
adoption cannot be granted in her favor alone without
Reviewer
violating Article 185 which mandates a joint adoption by the
husband and wife.
b Who may be adopted
a) Any person below eighteen (18) years of age who has been
administratively or judicially declared available for
adoption;
A child is one below 18 years old OR even over 18 but unable
to take care of himself because of a physical or mental defect.
(as amended by RA 9523)
b) The legitimate child of one spouse by the other spouse;
c) An illegitimate child by a quali ed adopter to improve
his/her status to that of legitimacy;
d) A person of legal age if, prior to the adoption, said person has
been consistently considered and treated by the adopter(s)
as his/her own child since minority;
e) A child whose adoption has been previously rescinded; or
f) A child whose biological or adoptive parent(s) has died:
Provided, That no proceedings shall be initiated within six (6)
months from the time of death of said parent(s).
RA 9523 on DSWD Certi cation of Availability for Adoption
Child Legally Available for Adoption refers to a child in whose
favor a certi cation was issued by the DSWD that he/she is legally
available for adoption after the fact of abandonment or neglect has
been proven through the submission of pertinent documents, or
one who was voluntarily committed by his/her parent(s) or legal
guardian.
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Whose consent is necessary to the adoption
a) The adoptee, if ten (10) years of age or over;
b) The biological parent(s) of the child, if known, or the legal
guardian, or the proper government instrumentality which has
legal custody of the child;
c) The legitimate and adopted children, ten (10) years of age or
over, of the adopter(s) and adoptee, if any;
d) The illegitimate children, ten (10) years of age or over, of the
adopter if living with said adopter and the latter's spouse, if
any; and
e) The spouse, if any, of the person adopting or to be adopted.
Santos v. Aranzanso
If the natural parents have abandoned their children, consent
to the adoption by the guardian ad litem su ces.
Adoption is a proceeding in rem and that constructive
notice, such as the publication duly made as aforesaid, is enough
where the residence of the parents is unknown. Notice, moreover,
is not required in adoption cases in regard to the abandoning
parent.
Cang v. CA
Can minor children be legally adopted without the written
consent of a natural parent on the ground that the latter has
abandoned them?
The written consent of the natural parent to the adoption has
remained a requisite for its validity. Nevertheless, the
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requirement of written consent can be dispensed with if the
parent has abandoned the child or that such parent is "insane
or hopelessly intemperate."
In cases where the father opposes the adoption primarily because his
consent thereto was not sought, the matter of whether he had
abandoned his child becomes a proper issue for determination.
The issue of abandonment by the oppositor natural parent is a
preliminary issue that an adoption court must rst confront.
Here, records disclose that petitioner’s conduct did not constitute
abandonment. Physical estrangement alone, without nancial
and moral desertion, is not tantamount to abandonment.
While admittedly, petitioner was physically absent as he was then in
the United States, he was not remiss in his natural and legal
obligations of love, care and support for his children.
In re Petition for Adoption of
Michelle and Michael Jude P. Lim
Petitioner appealed directly to this Court raising the sole issue of
whether or not petitioner, who has remarried, can singly adopt. It is
undisputed that, at the time the petitions for adoption were led,
petitioner had already remarried. She led the petitions by herself,
without being joined by her husband Olario. We have no other
recourse but to a rm the trial court's decision denying the petitions
for adoption. Dura lex sed lex. The law is explicit.
The fact that Olario gave his consent to the adoption as shown in his
A davit of Consent does not su ce. There are certain requirements
that Olario must comply being an American citizen. He must meet
the quali cations set forth in Section 7 of RA 8552. None of these
quali cations were shown and proven during the trial.
Reviewer
Sayson v. CA
It is too late now to challenge the decree of adoption, years after it
became nal and executory. That was way back in 1967.
A no less important argument against the petitioners is that their
challenge to the validity of the adoption cannot be made
collaterally, as in their action for partition, but in a direct
proceeding frontally addressing the issue.
c Rights of an adopted child
1. Parental Authority;
2. Legitimacy;
3. Succession.
Effects of rescission of adoption
Santos, Jr. v. Republic
Whether or not an elder sister may adopt a younger brother.
YES.
In re Adoption of Stephanie Nathy Astorga Garcia
May an illegitimate child, upon adoption by her natural father, use
the surname of her natural mother as her middle name? YES. There
is no law regulating the use of a middle name.
d Instances and e ects of rescission
2
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Grounds for Rescission of Adoption. – Upon petition of the
adoptee, with the assistance of the Department if a minor or if over
eighteen (18) years of age but is incapacitated, as guardian/counsel,
the adoption may be rescinded on any of the following grounds
committed by the adopter(s):
a) repeated physical and verbal maltreatment by the
adopter(s) despite having undergone counseling;
b) attempt on the life of the adoptee;
c) sexual assault or violence; or
d) abandonment and failure to comply with parental
obligations.
Adoption, being in the best interest of the child, shall not be
subject to rescission by the adopter(s). However, the
adopter(s) may disinherit the adoptee for causes provided in
Article 919 of the Civil Code.
1. The parental authority of the adoptee's biological parent(s)
shall be restored if the adoptee is still a minor or
incapacitated.
2. The reciprocal rights and obligations of the adopter(s) and the
adoptee to each other shall be extinguished.
3. The court shall order the Civil Registrar to cancel the
amended certi cate of birth of the adoptee and restore his/her
original birth certi cate.
4. Succession rights shall revert to its status prior to adoption.
Vested rights acquired prior to judicial rescission shall be
respected.
Inter-country Adoption
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Inter-Country Adoption Act of 1995
Inter-country adoption refers to the socio-legal process of
adopting a Filipino child by a foreigner or a Filipino citizen
permanently residing abroad where the petition is led, the
supervised trial custody is undertaken, and the decree of adoption
is issued outside the Philippines.
a When allowed
E orts shall be exerted to place the child with an adoptive family in
the Philippines.
However, recognizing that inter-country adoption may be
considered as allowing aliens, not presently allowed by law to adopt
Filipino children if such children cannot be adopted by quali ed
Filipino citizens or aliens, the State shall take measures to ensure
that inter-country adoptions are allowed when the same shall prove
bene cial to the child's best interests, and shall serve and protect
his/her fundamental rights. (Sec. 2)
b Who may adopt
An alien or a Filipino citizen permanently residing abroad
may le an application for inter-country adoption of a Filipino
child if he/she:
a) is at least twenty-seven (27) years of age AND at least
sixteen (16) years older than the child to be adopted, at
the time of application unless the adopter is the parent by
nature of the child to be adopted or the spouse of such
parent;
b) if married, his/her spouse must jointly le for the
adoption;
c) has the capacity to act and assume all rights and
responsibilities of parental authority;
d) has not been convicted of a crime involving moral
turpitude;
e) is eligible to adopt under his/her national law;
f) is in a position to provide the proper care and support;
g) agrees to uphold the basic rights of the child;
h) comes from a country with whom the Philippines has
diplomatic relations; and
i) possesses all the quali cations and none of the
disquali cations provided herein and in other applicable
Philippine laws.
c Who may be adopted
1) Only a legally free child may be the subject of inter-country
adoption.
2) Legally-free child means a child who has been voluntarily or
involuntarily committed to the Department, in accordance
with the Child and Youth Welfare Code.
3) Child means a person below fteen (15) years of age
unless sooner emancipated by law.
I Support
1. What it compromises
ART 194. Support comprises xxxx
a. Sustenance;
b. Dwelling;
c. Clothing;
d. Medical attendance;
e. Education;
f. Transportation.
2. Who are obliged to give support
ART 195.
1) The spouses;
2) Legitimate ascendants and descendants;
3) Parents and their legitimate children and the
legitimate and illegitimate children of the latter;
4) Parents and their illegitimate children and the
legitimate and illegitimate children of the latter; and
5) Legitimate brothers and sisters, whether of full or
half-blood.
Support between brothers and sisters
ART 196. Brothers and sisters NOT legitimately related,
whether of the full or half-blood, are likewise bound to
support each other to the full extent set forth in Article 194,
except only when the need for support of the brother or sister,
being of age, is due to a cause imputable to the claimant's fault
or negligence.
Quintana v. Lerma and Reyes v. Ines-Luciano
The special defense of adultery set up by the defendant in his
answer both to the original and the amended complaint is a good
defense, and if properly proved and sustained will defeat the action.

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Sps. Lim v. Lim et al.
Whether petitioners are concurrently liable with Edward to
provide support to respondents.
YES. Although the obligation to provide support arising from
parental authority ends upon the emancipation of the child, the
same obligation arising from spousal and general familial ties ideally
lasts during the obligee's lifetime. Also, while parental authority
pertains to parents, passing to ascendants only upon its termination
or suspension, the obligation to provide legal support passes on to
ascendants not only upon default of the parents but also for
the latters inability to provide su cient support.
Petitioners Precluded from Availing of the Alternative
Option
Petitioners pray that they be allowed to ful ll their obligation by
maintaining respondents at petitioners' Makati residence. The
option is unavailable to petitioners. While not rising to the level of a
legal obstacle, as indeed, Cheryl's charge against Edward for
concubinage did not prosper for insu cient evidence, her steadfast
insistence on its occurrence amounts to a moral impediment
bringing the case within the ambit of the exception clause.
3. Source
ART 197. In case of legitimate ascendants; descendants,
whether legitimate or illegitimate; and brothers and sisters,
whether legitimately or illegitimately related, only the
separate property of the person obliged to give support
shall be answerable provided that in case the obligor has no
separate property, the absolute community or the conjugal
Reviewer
partnership, if nancially capable, shall advance the
support, which shall be deducted from the share of the spouse
obliged upon the liquidation of the absolute community or of
the conjugal partnership.
4. Order
ART 199. Whenever two or more persons are obliged to give
support, the liability shall devolve upon the following persons
in the order herein provided:
1) The Spouse;
2) The Descendants in the nearest degree;
3) The Ascendants in the nearest degree; and
4) The Brothers and sisters.
5. Amount
When the obligation to give support to one person falls on
several persons
ART 200. When the obligation to give support falls upon two
or more persons, the payment of the same shall be divided
between them in proportion to the resources of each.
However, in case of urgent need and by special circumstances,
the judge may order only one of them to furnish the support
provisionally, without prejudice to his right to claim from
the other obligors the share due from them.
How much is the amount of support to be given?
ART 201. The amount of support, in the cases referred to in
Articles 195 and 196, shall be in proportion to the resources
or means of the giver and to the necessities of the recipient.
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6. Manner and time of payment
ART 203. The obligation to give support shall be demandable
from the time the person who has a right to receive the same
needs it for maintenance, but it shall not be paid except from
the date of judicial or extrajudicial demand. xxxx
Payment shall be made within the rst ve days of each
corresponding month or when the recipient dies, his heirs
shall not be obliged to return what he has received in advance.
Option available to supporter
ART 204. The person obliged to give support shall have the
option to ful ll the obligation either
a) by paying the allowance xed, or
b) by receiving and maintaining in the family dwelling
the person who has a right to receive support.
The latter alternative cannot be availed of in case there is a
moral or legal obstacle thereto.
Amount of support to be received cannot be attached or levied
by creditors
ART 205. The right to receive support under this Title as
well as any money or property obtained as such support shall
not be levied upon on attachment or execution.
ART 207. When the person obliged to support another
unjustly refuses or fails to give support when urgently needed
by the latter, any third person may furnish support to the
needy individual, with right of reimbursement from the
person obliged to give support.
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7. Renunciation and termination
De Asis v. CA
The right to receive support can neither be renounced nor
transmitted to a third person. Furthermore, future support
cannot be the subject of a compromise.
8. Support pendente lite
Validity of the relationship must be proven first
Dolina v. Vallecera 2010
Dolina evidently led the wrong action to obtain support for her
child. The child's remedy is to le through her mother a judicial
action against Vallecera for compulsory recognition. If liation
is beyond question, support follows as a matter of obligation.
Alternatively, she may directly le an action for support, where
the issue of compulsory recognition may be integrated and
resolved.
J Parental Authority
1. General provisions
Medina v. Makabali
The right of parents to the company and custody of their children is
but ancillary to the proper discharge of parental duties to provide the
children with adequate support, education, moral, intellectual and
civic training and development.
Reviewer
While our law recognizes the right of a parent to the custody of her
child, Courts must not lose sight of the basic principle that "in all
questions of the care, custody, education and property of children,
the latter's welfare shall be paramount", and that for compelling
reasons, even a child under seven may be ordered separated
from the mother.
Sagala-Eslao v. CA
In the instant petition, when private respondent entrusted the
custody of her minor child to the petitioner, what she gave to the
latter was merely temporary custody and it did not constitute
abandonment or renunciation of parental authority. For the
right attached to parental authority, being purely personal, the law
allows a waiver of parental authority only in cases of adoption,
guardianship and surrender to a children’s home or an orphan
institution which do not appear in the case at bar.
Santos v. CA
Parental authority and responsibility are inalienable and may
not be transferred or renounced except in cases authorized by law.
Santos, Sr. has not been shown to be an unsuitable and un t parent.
Private respondents' demonstrated love and a ection for the boy,
notwithstanding, the legitimate father is still preferred over
the grandparents.
Renunciation
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ART 210. Parental authority and responsibility may not be
renounced or transferred except in cases authorized by law.
Celis v. Cafuir
The word "entrusted" cannot convey the idea of definite and
permanent renunciation of the mother's custody of her child.
The second document merely designated respondent Soledad as the
"real guardian" of the child. The designation of one as the guardian
of another cannot and does not mean that said guardian will always
assume and discharge the duties of the o ce or position.
Guardianship is always or almost invariably understood to be
temporary. While one is a minor or is incompetent, a guardian is
appointed; but when minority has passed or incapacity has ceased,
guardianship also terminates.
Joint exercise of parental authority
ART 211. The father and the mother shall jointly exercise
parental authority over the persons of their common children.
In case of disagreement, the father's decision shall prevail,
unless there is a judicial order to the contrary.
Hirsch v. CA
The so-called "tender-age presumption" under Article 213 of the
Family Code may be overcome only by compelling evidence of the
mother's un tness. Here, the mother was not shown to be
unsuitable or grossly incapable of caring for her minor child. All
told, no compelling reason has been adduced to wrench the child
from the mother's custody.
Rule on parental authority for illegitimate child
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Dempsey v. RTC
Illegitimate children have rights to the same nature as legitimate and
adopted children. Rights must be enforced or protected to the extent
that it is possible to do so.
Rule in case of separation of parents
ART 213. In case of separation of the parents, parental
authority shall be exercised by the parent designated by the
Court.
1. In case of disagreement, the court will decide who
between the parents will have custody.
2. Basic rule is if the child is below 7 years old, he should be
with the mother. If over 7 years old, the child will decide.
3. Best interest and welfare of the child rule.
4. Joint custody is NOT encouraged.
Beckett v. Sarmiento, Jr 2013
The matter of custody, to borrow from Espiritu v. Court of
Appeals, “is not permanent and unalterable and can always be
re-examined and adjusted.”
The preference of a child over 7 years of age as to whom he desired to
live with shall be respected. Moreover, custody, even if previously
granted by a competent court in favor of a parent, is not, to reiterate,
permanent.
Dacasin v. Del Mundo-Dacasin 2010
For review is a dismissal of a suit to enforce a post-foreign divorce
Reviewer
child custody agreement for lack of jurisdiction.
No child under seven years of age shall be separated from the
mother. Clearly then, the Agreement's object to establish a
post-divorce joint custody regime between respondent and
petitioner over their child under seven years old contravenes
Philippine law.
A custody agreement can never be regarded as “permanent and
unbending,” the simple reason being that the situation of the parents
and even of the child can change. In a very real sense, then, a
judgment involving the custody of a minor child cannot be accorded
the force and effect of res judicata.
Luna v. IAC
The manifestation of the child Shirley that she would kill herself or
run away from home if she should be taken away from the herein
petitioners and forced to live with the private respondents is a
circumstance that would make the execution of the judgment
inequitable, unfair and unjust, if not illegal.
Chua v. Cabangbang
The absence of any kinship between the child and the
Cabangbangs alone cannot serve to bar the lower court from
awarding her custody to them. Indeed, the law provides that in
certain cases the custody of a child may be awarded even to
strangers, as against either the father or the mother or against both.
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Laxamana v. Laxamana
While petitioner may have a history of drug dependence, the records
are inadequate as to his moral, nancial and social well-being.
Moreover, the children in this case were 14 and 15 years old at the
time of the promulgation of the decision, yet the court did not
ascertain their choice as to which parent they want to live with.
Gualberto v. Gualberto
There being no su cient proof of any compelling reason to
separate the minor from his mother, custody should remain
with her.
Here, Crisanto cites immorality due to alleged lesbian relations
as the compelling reason to deprive Joycelyn of custody. But sexual
preference or moral laxity alone does not prove parental neglect or
incompetence. Not even the fact that a mother is a prostitute or has
been unfaithful to her husband would render her un t to have
custody of her minor child. To deprive the wife of custody, the
husband must clearly establish that her moral lapses have had
an adverse e ect on the welfare of the child or have distracted
the o ending spouse from exercising proper parental care.
Sombong v. CA
Habeas Corpus may be resorted to in cases where "the rightful
custody of any person is withheld from the person entitled thereto."
Thus, although the Writ of Habeas Corpus ought not to be issued
if the restraint is voluntary, we have held time and again that the said
writ is the proper legal remedy to enable parents to regain the
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custody of a minor child even if the latter be in the custody of
a third person of her own free will.
Madrinan v. Madrinan
A careful reading of Section 5(b) of RA 8369 reveals that family
courts are vested with original exclusive jurisdiction in
custody cases, not in habeas corpus cases.
Unson III v. Navarro and Araneta
The fact, that petitioner might have been tolerant about her stay
with her mother in the past when she was still too young to
distinguish between right and wrong and have her own correct
impressions or notions about the unusual and peculiar
relationship of her mother with her own uncle-in-law, the
husband of her sister's mother, is hardly of any consequence now
that she has reached a perilous stage in her life.
Tonog v. Daguimol
Inasmuch as the age of the minor, Gardin Faith, has now exceeded
the statutory bar of seven years, a fortiori, her preference and
opinion must rst be sought in the choice of which parent should
have the custody over her person.
David v. CA
The fact that private respondent has recognized the minor
Reviewer
child may be a ground for ordering him to give support to the
latter, but not for giving him custody of the child.
Yu v. Yu
By petitioner's ling of the case for declaration of nullity of marriage
before the Pasig RTC he automatically submitted the issue of the
custody of Bianca as an incident thereof. The custody issue in a
declaration of nullity case is deemed pleaded. The ling of a
new action is not necessary for the court to consider the issue
of custody of a minor.
The petition led by petitioner for the declaration of nullity of
marriage before the Pasig RTC is the more appropriate action to
determine the issue of who between the parties should have custody
over Bianca in view of Article 50 of the Family Code. This must be
so in line with the policy of avoiding multiplicity of suits.
see A.M. No. 03-03-04-SC
2. Substitute parental authority
ART 216. In default of parents or a judicially appointed
guardian, the following person shall exercise substitute
parental authority over the child in the order indicated:
1) The surviving grandparent, as provided in Art. 214;
2) The oldest brother or sister, over 21 years of age,
unless un t or disquali ed; and
3) The child's actual custodian, over twenty-one years
of age, unless un t or disquali ed.
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Whenever the appointment or a judicial guardian over the
property of the child becomes necessary, the same order of
preference shall be observed.
Bagtas v. Santos
Section 1, Rule 102, of the Rules of Court states that the writ of
habeas corpus shall extend to all cases where the rightful custody of
any person is withheld from the persons entitled thereto. In cases
involving minors, the purpose of a petition for habeas corpus is not
limited to the production of the child before the court. The main
purpose of the petition for habeas corpus is to determine who
has the rightful custody over the child.
3. Special parental authority
Who will exercise special parental authority
ART 218. The school, its administrators and teachers, or the
individual, entity or institution engaged in child care 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.
Extent of liability of those exercising special parental authority
ART 219. xxx shall be principally and solidarily liable for
damages caused by the acts or omissions of the unemancipated
minor.
The parents, judicial guardians or the persons exercising
substitute parental authority over said minor shall be
subsidiarily liable.
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What are the available defenses for them. — that they
exercised the proper diligence required.
Amadora v. CA
The rector, the high school principal and the dean of boys cannot be
held liable because none of them was the teacher-in-charge.
At any rate, assuming that he was the teacher-in-charge, there is no
showing that Dicon was negligent in enforcing discipline upon
Da on or that he had waived observance of the rules and regulations
of the school or condoned their non-observance.
The Colegio cannot be held directly liable under the article because
only the teacher or the head of the school of arts and trades is
made responsible for the damage caused by the student or
apprentice.
PSBA v. CA
When an academic institution accepts students for enrollment, there
is established a contract between them, resulting in bilateral
obligations which both parties are bound to comply with.
The school may still avoid liability by proving that the breach of its
contractual obligation to the students was not due to its negligence.
4. E ect of parental authority over the child's person
ART 221. 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 their company and under their parental
authority subject to the appropriate defenses provided by law.
Reviewer
Defense of the parents
Libi v. IAC
Parents are and should be held primarily liable for the civil liability
arising from criminal o enses committed by their minor children
under their legal authority or control, or who live in their company,
unless it is proven that the former acted with the diligence of a
good father of a family to prevent such damages.
St. Mary’s Academy v. Carpetanos
For petitioner to be liable, there must be a nding that the act or
omission considered as negligent was the proximate cause of the
injury caused because the negligence must have a causal connection
to the accident. In this case, the respondents failed to show that the
negligence of petitioner was the proximate cause of the death of the
victim. The negligence of petitioner St. Mary’s Academy was
only a remote cause of the accident.
5. E ects of parental authority over the child's
property
ART 225. The father and the mother shall jointly exercise legal
guardianship over the property of the unemancipated
common child without the necessity of a court appointment.
Where the market value of the property or the annual income
of the child exceeds P50,000, the parent concerned shall be
required to furnish a bond in such amount as the court may
determine, but not less than ten per centum (10%) of the
value of the property or annual income, to guarantee the
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performance of the obligations prescribed for general
guardians.
The petition shall be docketed as a summary special
proceeding.
6. Suspension or termination of parental authority
Permanent Termination
ART 228. Parental authority terminates permanently:
1) Upon the death of the parents;
2) Upon the death of the child; or
3) Upon emancipation of the child.
ART 232. If the person exercising parental authority has
subjected the child or allowed him to be subjected to sexual
abuse, such person shall be permanently deprived by the court
of such authority.
Terminated unless subsequently revived
ART 229. Unless subsequently revived by a nal judgment,
parental authority also terminates:
1) Upon adoption of the child;
2) Upon appointment of a general guardian;
3) Upon judicial declaration of abandonment of the
child in a case led for the purpose;
4) Upon nal judgment of a competent court divesting
the party concerned of parental authority; or
5) Upon judicial declaration of absence or incapacity
of the person exercising parental authority.
Ipso Facto Suspension
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ART 230. Parental authority is suspended upon conviction of without their consent. General Provisions
the parent or the person exercising the same of a crime which However, inasmuch as it is evident that Reginald is now of age, as a Testamentary Succession
carries with it the penalty of civil interdiction. The authority matter of equity, the liability of Atty. Hill has become merely
is automatically reinstated upon service of the penalty or subsidiary to that of his son. Wills
upon pardon or amnesty of the o ender.
Institution of heirs
Suspension by court action
Substitution of heirs
ART 231. The court in an action led for the purpose in a Libi v. IAC, supra
Conditional testamentary dispositions and those with a
related case may also suspend parental authority if the parent Parents are and should be held primarily liable for the civil liability
or the person exercising the same: term
arising from criminal o enses committed by their minor children
1) Treats the child with excessive harshness or cruelty; under their legal authority or control, or who live in their company, Legitime
unless it is proven that the former acted with the diligence of a good
2) Gives the child corrupting orders, counsel or example; Disinheritance
father of a family to prevent such damages.
3) Compels the child to beg; or Legacies and devises

4) Subjects the child or allows him to be subjected to
acts of lasciviousness.
K Emancipation
When emancipation takes place?
ART 234. Emancipation takes place by the attainment of
majority. Unless otherwise provided, majority commences at
the age of eighteen years. (as amended by RA 6809)
Elcano v. Hill
The marriage of a minor child does not relieve the parents of the
duty to see to it that the child, while still a minor, does not give cause
to any litigation, in the same manner that the parents are answerable
for the borrowings of money and alienation or encumbering of real
property which cannot be done by their minor married child
Legal and Intestate Succession
L Retroactivity of the Family Code General provisions; relationship and right of
representation
ARTICLE 256. This Code shall have retroactive e ect insofar as
it does not prejudice or impair vested or acquired rights in Order of intestate succession
accordance with the Civil Code or other laws.
Provisions Common to Testate and Intestate Succession
Bernabe v. Alejo on Vested Rights Right of Accretion
The right to seek recognition granted by the Civil Code to Capacity to succeed by will or by intestacy
illegitimate children who were still minors at the time the Family Acceptance and repudiation of inheritance
Code took e ect cannot be impaired or taken away. The minors have
up to four years from attaining majority age within which to le an Partition and distribution of the estate
action for recognition.
A General Provisions
III Succession

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 Civil Law and Practical Exercises
1. De nition
ART 774. Succession is a mode of acquisition by virtue of
which the property, rights and obligations to the extent of the
value of the inheritance, of a person are transmitted through
his death to another or others either by his will or by
operation of law.
2. Succession occurs at the moment of death
ART 777. The rights to the succession are transmitted from the
moment of the death of the decedent.
Objects of Succession
Transmissible rights and obligations
ART 776. The inheritance includes all the property, rights
and obligations of a person which are not extinguished by
his death.
Rabadilla v. CA
Under Article 776 inheritance includes all the property, rights and
obligations of a person, not extinguished by his death. Conformably,
whatever rights Dr. Rabadilla had by virtue of subject Codicil were
transmitted to his forced heirs, at the time of his death. And since
obligations not extinguished by death also form part of the estate of
the decedent; corollarily, the obligations imposed by the Codicil on
the deceased Dr. Rabadilla, were likewise transmitted to his
compulsory heirs upon his death.
ART 781. The inheritance of a person includes not only the
property and the transmissible rights and obligations existing
Reviewer
at the time of his death, but also those which have accrued
thereto since the opening of the succession.
Examples of rights NOT extinguished by death, and thereby
TRANSMISSIBLE
a) Right to bring or continue an accion interdictal;
b) To compel the execution of a document necessary for
convenience;
c) To continue a lease contract;
d) Property right in an insurance policy.
NHA v. Almeida
The death of Margarita Herrera does not extinguish her interest over
the property. Obligations are transmissible. Margarita's obligation
to pay became transmissible at the time of her death either by will or
by operation of law.
3. Kinds of Successors
ART 782. An heir is a person called to the succession either by
the provision of a will or by operation of law.
Devisees and legatees are persons to whom gifts of real and
personal property are respectively given by virtue of a will.
B Testamentary Succession
1 Wills
A will is an act whereby a person is permitted, with the formalities
prescribed by law, to control to a certain degree the disposition of
his estate, to take e ect after his death.
By RGL
for the 2022 Bar
Seangio v. Reyes
Segundo's document, although it may initially come across as a mere
disinheritance instrument, conforms to the formalities of a
holographic will prescribed by law. It is written, dated and signed
by the hand of Segundo himself. An intent to dispose mortis causa
can be clearly deduced from the terms of the instrument, and while
it does not make an a rmative disposition of the latter's property,
the disinheritance of Alfredo, nonetheless, is an act of
disposition in itself.
ART 828. A will may be revoked by the testator at any time
before his death. Any waiver or restriction of this right is
VOID.
ART 818. Two or more persons cannot make a will jointly,
or in the same instrument, either for their reciprocal bene t or
for the bene t of a third person.
ART 784. The making of a will is a strictly personal act; it
cannot be left in whole or in part to the discretion of a third
person, or accomplished through the instrumentality of an
agent or attorney.
Interpretation of wills
ART 788. If a testamentary disposition admits of di erent
interpretations, in case of doubt, that interpretation by
which the disposition is to be operative shall be
preferred.
Kinds of Ambiguity
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a) Latent or Intrinsic — that which does not appear on its d) Legacies of credit or remission are e ective only as regards The institution of legatees in this will is conditional, and the
face, and is discovered only by evidence aliunde. that part of the credit or debt existing at the time of the condition is that the instituted legatees must respect the testator's
death of the testator. will to distribute his property, not in accordance with the laws of his
b) Patent or Extrinsic — appears on the face of the will.
nationality, but in accordance with the laws of the Philippines. Said
How to cure? condition is VOID, being contrary to law.
Law governing form
a) By examining the will itself;
as to time of execution
b) Extrinsic evidence such as WRITTEN declarations of the
testator. ART 795. The validity of a will as to its form depends upon Cayetano v. Leonidas
the observance of the law in force at the time it is made.
Although on its face, the will appeared to have preterited the
ART 791. The words of a will are to receive an interpretation petitioner, the private respondents have su ciently established that
Enriquez v. Abadia
which will give to every expression some e ect, rather than one Adoracion was, at the time of her death, an American citizen and a
which will render any of the expressions inoperative; and of The validity of a will is to be judged not by the law in force at the permanent resident of Pennsylvania, U.S.A. Thus, the law which
two modes of interpreting a will, that is to be preferred which time of the testator's death or at the time the supposed will is governs Adoracion's will is the law of Pennsylvania. The
will prevent intestacy. presented in court for probate or when the petition is decided by the Pennsylvania law does not provide for legitimes and that all the estate
court but at the time the instrument was executed. may be given away by the testatrix to a complete stranger.
“Testacy is preferred over intestacy.”
It is a settled rule that as regards the intrinsic validity of the
as to place of execution
provisions of the will, as provided for by Article 16 (2) and 1039 of
GR: What is given by the will are those properties already the Civil Code, the national law of the decedent must apply.
Testator Where Governing law as to form
owned by the testator at the time the will was made, NOT
those acquired after. Filipino Abroad Foreign law as to form (Art 815) General Rules on VALIDITY
EXC: a) EXTRINSIC validity
Alien Abroad Formalities observed in
a) If it expressly appears that it was the intention to include i) TIME — the law in force when the WILL WAS
after-acquired properties; a. the place in which he resides, or
MADE;
b) If the will is republished or modi ed by a subsequent b. his country; or
ii) PLACE — depends if testator is:
will or codicil; c. The NCC. (Art 816)
1) Filipino;
c) If the testator erroneously thought he owned certain
Anyone PH National law (Art 817) 2) An alien abroad;
properties, such gift is invalid, unless after making the will,
said properties will belong to him. Law governing content 3) An alien in PH.
b) INTRINSIC validity
Miciano v. Brimo

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i) TIME — Successional rights are governed at the time
of DEATH of DECEDENT.
ii) PLACE — National law of Decedent subject to the
rules on renvoi. Thus, if the national law of the
decedent refer the matter to the law of his domicile,
say PH, then the PH laws must be applied.
Who may make a will
ART 799. To be of sound mind, it is not necessary that the
testator be in full possession of all his reasoning faculties, or
that his mind be wholly unbroken, unimpaired, or
unshattered by disease, injury or other cause.
It shall be sufficient if the testator was able at the time of
making the will to know the
1) nature of the estate to be disposed of, the
2) proper objects of his bounty, and the
3) character of the testamentary act.
Presumption: Testator is of sound mind.
Burden of Proof on the one alleging the contrary.
EXC: Testator is presumed INSANE if:
a) One month or less before making the will, he was
publicly known to be insane; OR
b) He made the will after being judicially declared to
be such.
Burden of Proof SHIFTS to the one who maintains the will’s
validity.
Reviewer
Notarial Wills
General requirements
ART 806. Every will must be acknowledged before a
notary public by the testator and the witnesses. The notary
public shall not be required to retain a copy of the will, or le
another with the o ce of the Clerk of Court.
Suroza v. Honrado
In this case, respondent judge, on perusing the will and noting that it
was written in English and was thumbmarked by an obviously
illiterate testatrix, could have readily perceived that the will is void.
Specific requirements
⭐ART 805. Every will, other than a holographic will, must
be subscribed at the end thereof by the testator himself or
by the testator's name written by some other person in his
presence, and by his express direction, and attested and
subscribed by three or more credible witnesses in the
presence of the testator and of one another.
The testator or the person requested by him to write his name
and the instrumental witnesses of the will, shall also sign, as
aforesaid, each and every page thereof, except the last, on
the left margin, and all the pages shall be numbered
correlatively in letters placed on the upper part of each page.
The attestation shall state the number of pages used upon
which the will is written, and the fact that the testator signed
the will and every page thereof, or caused some other person to
write his name, under his express direction, in the presence of
the instrumental witnesses, and that the latter witnessed and
By RGL
for the 2022 Bar
signed the will and all the pages thereof in the presence of the
testator and of one another.
If the attestation clause is in a language not known to the
witnesses, it shall be interpreted to them.
Mercado v. Lacuesta
The attestation clause is fatally defective for failing to state that
Antero Mercado caused Atty. Florentino Javier to write the testator's
name under his express direction. The cross cannot and does not have
the trustworthiness of a thumbmark.
Testate Estate of Abada v. Abaja
A scrutiny of Abada’s will shows that it has an attestation clause. The
pages are numbered correlatively with the letters “ONE” and
“TWO”. The attestation clause clearly states that Abada signed the
will and its every page in the presence of the witnesses.
In applying the rule on substantial compliance in determining
the number of witnesses, while the attestation clause does not state
the number of witnesses, a close inspection of the will shows that
three witnesses signed it. Precision of language in the drafting of an
attestation clause is desirable. However, it is not imperative that a
parrot-like copy of the words of the statute be made. It is
su cient if from the language employed it can reasonably be
deduced that the attestation clause ful lls what the law expects of it.
Azuela v. CA
A will whose attestation clause does not contain the number of pages
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on which the will is written is fatally defective. A will whose
attestation clause is not signed by the instrumental witnesses is fatally
defective. And perhaps most importantly, a will which does not
contain an acknowledgment, but a mere jurat, is fatally defective.
Santos Mitra v.
2018 cf. Lopez v. Lopez in Art 809
Saban-Guevara
When Article 805 of the Civil Code requires the testator to
subscribe at the end of the will, it necessarily refers to the logical
end thereof, which is where the last testamentary disposition
ends. As the probate court correctly appreciated, the last page of the
will does not contain any testamentary disposition; it is but a mere
continuation of the Acknowledgment.
An examination of the will in question reveals that the attestation
clause indeed failed to state the number of pages comprising the will.
However, as was the situation in Taboada, this omission was
supplied in the Acknowledgment. It was speci ed therein that the
will is composed of four pages, the Acknowledgment included.
Cruz v. Villasor
The notary public before whom the will was acknowledged cannot
be considered as the third instrumental witness since he cannot
acknowledge before himself his having signed the will.
Javellana v. Ledesma
Whether or not the notary signed the certi cation of
Reviewer
acknowledgment in the presence of the testatrix and the witnesses,
does not a ect the validity of the codicil. The new Civil Code does
not require that the signing of the testator, witnesses and
notary should be accomplished in one single act.
Guerrero v. Bihis
An acknowledgment taken outside the territorial limits of the
o cer's jurisdiction is VOID as if the person taking it were wholly
without o cial character.
Ortega v. Valmonte
The party challenging the will bears the burden of proving the
existence of fraud at the time of its execution. The burden to show
otherwise shifts to the proponent of the will only upon a showing of
credible evidence of fraud.
Special requirements
ART 807. If the testator be deaf, or a deaf-mute, he must
personally read the will, if able to do so; otherwise, he shall
designate two persons to read it and communicate to him, in
some practicable manner, the contents thereof.
ART 808. If the testator is blind, the will shall be read to him
twice; once, by one of the subscribing witnesses, and again,
by the notary public before whom the will is acknowledged.
d. substantial compliance
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ART 809. In the absence of bad faith, forgery, or fraud, or
undue and improper pressure and in uence, defects and
imperfections in the
1) form of attestation or in the
2) language used therein
shall not render the will invalid if it is proved that the will was
in fact executed and attested in substantial compliance
with all the requirements of Article 805.
Gil v. Murciano
Failure to state in the attestation clause that testator signed the will is
fatal, for the precise purpose of the attestation clause is to certify
that the testator signed the will, this being the most essential
element of the clause. Without it there is no attestation at all.
Caneda v. CA
An attestation clause that fails to speci cally state the fact that the
attesting witnesses witnessed the testator sign the will and all its
pages in their presence and that they, the witnesses, likewise signed
the will and every page thereof in the presence of the testator and of
each other, is FATALLY DEFECTIVE.
⭐The rule on substantial compliance must be limited to
disregarding those defects that can be supplied by an
examination of the will itself.
Lopez v. Lopez 2012
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The law is clear that the attestation must state the number of pages ART 821. The following are disquali ed from being 4) whether the execution of the will and its signing were the
used upon which the will is written. witnesses to a will: voluntary acts of the decedent.
The statement in the Acknowledgement portion of the subject 1) Any person not domiciled in the Philippines; A reading of Article 813 shows that its requirement a ects the
LAST WILL AND TESTAMENT that it “consists of 7 pages
2) Those who have been convicted of falsi cation of a validity of the dispositions contained in the holographic will, but not
including the page on which the rati cation and acknowledgment
document, perjury or false testimony. its probate. If the testator fails to sign and date some of the
are written” cannot be deemed substantial compliance. The will
dispositions, the result is that these dispositions cannot be
actually consists of 8 pages including its acknowledgment which Holographic Wills e ectuated. Such failure, however, does not render the whole
discrepancy cannot be explained by mere examination of the will
ART 812. In holographic wills, the dispositions of the testator testament void.
itself but through the presentation of evidence aliunde. Thus, the
written below his signature must be dated and signed by
doctrine on substantial compliance cannot be relied upon. ART 811. In the probate of a holographic will, it shall be
him in order to make them valid as testamentary dispositions.
necessary that at least one witness who knows the
Witnesses ART 813. When a number of dispositions appearing in a handwriting and signature of the testator explicitly declare
a) Of sound mind; holographic will are signed without being dated, and the last that the will and the signature are in the handwriting of the
disposition has a signature and a date, such date validates testator. If the will is contested, at least three of such
b) At least 18 years old;
the dispositions preceding it, whatever be the time of prior witnesses shall be required.
c) Able to read and write; dispositions.
In the absence of any competent witness referred to in the
d) Not be blind, deaf or dumb; ART 814. In case of any insertion, cancellation, erasure or preceding paragraph, and if the court deem it necessary,
e) Domiciled in PH; alteration in a holographic will, the testator must expert testimony may be resorted to.
authenticate the same by his full signature.
f) Not have been CONVICTED of:
Rodelas v. Aranza
i) Falsi cation of a document; Ajero v. CA
If the holographic will has been lost or destroyed and no other copy
ii) Perjury; or
In a petition to admit a holographic will to probate, the only issues is available, the will can not be probated because the best and only
iii) False Testimony. to be resolved are: evidence is the handwriting of the testator in said will. It is necessary
1) whether the instrument submitted is, indeed, the decedent's that there be a comparison between sample handwritten statements
ART 824. A mere charge on the estate of the testator for the last will and testament; of the testator and the handwritten will. But a photostatic copy or
payment of debts due at the time of the testator's death does xerox copy of the holographic will may be allowed because
2) whether said will was executed in accordance with the
not prevent his creditors from being competent witnesses to his comparison can be made with the standard writings of the testator.
formalities prescribed by law;
will.
3) whether the decedent had the necessary testamentary
capacity at the time the will was executed; and, Codoy v. Calugay

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We cannot eliminate the possibility of a false document being
adjudged as the will of the testator, which is why if the holographic
will is contested, that law requires three witnesses to declare that the
will was in the handwriting of the deceased. The will was found not
in the personal belongings of the deceased but with one of the
respondents.
Incorporation of Document by Reference
ART 827. If a will incorporates into itself by reference any
document or paper, such document or paper shall not be
considered a part of the will unless the following requisites
are present:
1) The document or paper referred to in the will must
be in existence at the time of the execution of the
will;
2) The will must clearly describe and identify the same,
stating among other things the number of pages
thereof;
3) It must be identi ed by clear and satisfactory proof
as the document or paper referred to therein; and
4) It must be signed by the testator and the witnesses
on each and every page, except in case of voluminous
books of account or inventories.
Codicils
ART 825. A codicil is a supplement or addition to a will,
made after the execution of a will and annexed to be taken as a
part thereof, by which disposition made in the original will is
explained, added to, or altered.
Reviewer
Revocation of Wills and Testamentary Disposition
Definition of revocation
An act of the mind, terminating the potential capacity of the will
to operate at the death of the testator, manifested by some outward
or visible act or sign, symbolic thereof.
It is simply an act to annul a will in whole or in part.
When may revocation be effected
ART 828. A will may be revoked by the testator at any time
before his death. Any waiver or restriction of this right is
VOID.
Maloto v. CA
It is clear that the physical act of destruction of a will, like burning in
this case, does not per se constitute an e ective revocation, unless the
destruction is coupled with animus revocandi on the part of the
testator.
Implied revocation
ART 831. Subsequent wills which do not revoke the
previous ones in an express manner, annul only such
dispositions in the prior wills as are inconsistent with or
contrary to those contained in the later wills.
Effect of revocation
ART 833. A revocation of a will based on a false cause or an
illegal cause is null and void.
ART 834. The recognition of an illegitimate child does not
lose its legal e ect, even though the will wherein it was made
should be revoked.
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Doctrine of dependent relative revocation
ART 832. A revocation made in a subsequent will shall take
e ect, even if the new will should become inoperative by
reason of the incapacity of the heirs, devisees or legatees
designated therein, or by their renunciation.
Molo v. Molo
The rule is established that where the act of destruction is connected
with the making of another will so as fairly to raise the inference that
the testator meant the revocation of the old to depend upon the
e cacy of the new disposition intended to be substituted, the
revocation will be conditional and dependent upon the e cacy
of the new disposition; and if, for any reason, the new will
intended to be made as a substitute is inoperative, the
revocation fails and the original will remains in full force.
Republication and Revival
Republication is the process of re-establishing a will, which has
become useless because of its nullity or it having been revoked. It is
made by:
1) Re-execution of the original will (COPYING the original
provisions);
2) Execution of a codicil or implied republication.
ART 836. The execution of a codicil referring to a previous
will has the e ect of republishing the will as modi ed by the
codicil.
1) To republish a VOID will as to form, all dispositions
must be reproduced in the new will.
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2) To republish a valid but REVOKED will, the disinheritance results in the disposition of the property of the Effect of allowance of wills
execution of a codicil which makes reference to that testator Segundo in favor of those who would succeed in the absence
1) The probate proper or ALLOWANCE of the will is binding
will is su cient. of Alfredo.
upon the WHOLE WORLD insofar as
ART 837. If after making a will, the testator makes a second In probate proceedings, the court — a) Testamentary capacity; AND
will expressly revoking the rst, the revocation of the
a) Orders the probate of the will; b) Due execution
second will does not revive the rst will, which can be revived
only by another will or codicil. b) Grants letters testamentary or letters with a will are concerned.
annexed;
1) Republication is an act of the testator, whereas Revival takes 2) The following are NOT included in the probate order as they
place by operation of law. c) Hears and approves claims against the estate; delve into the INTRINSIC validity of the will:

2) Samples of Revival d) Orders the payment of lawful debts; a) Exclusion of widow from inheritance;

a) Preterition nulli es the institution. But If the omitted heir e) Authorizes the sale, mortgage, or any other encumbrance
dies ahead of the testator, the institution is revived. (Art of real estate;
856) f) And directs the delivery of the estate or properties to those
b) If testator makes a second will that impliedly revokes the who are entitled thereto.
rst, the revocation of the second will revives the rst.
NB: Even if a will is never probated, property may be
(Art 837) transmitted if a partition agreement is entered into which
is based on the will.
Allowance of Wills
ART 838. No will shall pass either real or personal property Modes of probate
unless it is proved and allowed in accordance with the a) DURING testator’s lifetime; Ante mortem
Rules of Court.
b) AFTER death. Post mortem
The testator himself may, during his lifetime, petition the
→ TWO PARTS:
court having jurisdiction for the allowance of his will.
1) Probate Proper — deals with EXTRINSIC validity;
Seangio v. Reyes 2) Inquiry into INTRINSIC validity and
DISTRIBUTION of estate.
An intent to dispose mortis causa can be clearly deduced from the
terms of the instrument, and while it does not make an a rmative → Any person interested in the probate of the will may le a
disposition of the latter's property, the disinheritance of Alfredo, petition.
nonetheless, is an act of disposition in itself. In other words, the
b) Disinheritance of a child;
c) Impairment of legitime;
d) Declaring a certain woman the true wife of testator;
e) Partitioning of conjugal properties;
f) Right of a widow to inherit;
g) Titles to property, and annulment of alleged
fraudulent sales.
These matters are to be brought in the 2nd part, and if
disposed of in the rst, CANNOT be res judicata.
3) The GR is that a probate court has NO jurisdiction to decide
question of ownership EXC:
a) When the parties voluntarily submit the matter to
the court; OR
b) To decide provisionally to determine whether to
include the property in the inventory.
4) There is NO prescriptive period for instituting probate
proceedings. ESTOPPEL is NOT applicable as well.

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5) Probate proceedings are TERMINATED:
a) Upon approval of the project of partition;
b) Granting of petition to close the proceedings; and
c) Issuance of the order of distribution directing the
delivery of the properties to the heirs.
6) Matters that should be brought up before the probate court:
a) Determination of heirs;
b) Proof of liation;
c) Determination of estate of decedent; AND
d) Claims thereto.
Maninang v. CA
The law enjoins the probate of the Will and public policy requires it,
because unless the Will is probated and notice thereof given to the
whole world, the right of a person to dispose of his property by Will
may be rendered nugatory.
Preterition 'consists in the omission in the testator's will of the
forced heirs or anyone of them, either because they are not
mentioned therein, or, though mentioned, they are neither
instituted as heirs nor are expressly disinherited.
Disinheritance, in turn, 'is a testamentary disposition depriving any
compulsory heir of his share in the legitime for a cause authorized by
law.'
Nepomuceno v. CA
The prohibition in Article 739 is against the making of a donation
Reviewer
between persons who are living in adultery or concubinage. It is the
donation which becomes VOID. The giver cannot give even
assuming that the recipient may receive. The very wordings of the
Will invalidate the legacy because the testator admitted he was
disposing the properties to a person with whom he had been living
in concubinage.
Disallowance
ART 839. The will shall be disallowed in any of the following
cases:
1) If the formalities required by law have not been
complied with;
2) If the testator was insane, or otherwise mentally
incapable of making a will, at the time of its
execution;
3) If it was executed through force or under duress, or
the in uence of fear, or threats;
4) If it was procured by undue and improper pressure
and in uence, on the part of the bene ciary or of
some other person;
5) If the signature of the testator was procured by
fraud;
6) If the testator acted by mistake or did not intend
that the instrument he signed should be his will at the
time of a xing his signature thereto.
2 Institution of heirs
Treyes v. Larlar 2020 En banc Caguioa, J
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for the 2022 Bar
The rule which requires a prior determination of heirship in a
separate special proceeding as a prerequisite before one can le an
ordinary civil action to enforce ownership rights acquired by virtue
of succession, is abandoned.
Henceforth, the rule is: 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. The ruling of the trial court shall only be in
relation to the cause of action of the ordinary civil action, i.e., the
nulli cation of a deed or instrument, and recovery or reconveyance
of property, which ruling is binding only between and among the
parties.
ART 840. Institution of heir is an act by virtue of which a
testator designates in his will the person or persons who are to
succeed him in his property and transmissible rights and
obligations.
1) Institution of an Heir is de ned as:
a) A voluntary act that cannot a ect the legitime;
b) Generally applicable to devises and legacies;
c) Applicable only in testamentary succession;
d) May be done to a conceived child.
2) Requisites
a) Will is EXTRINSICALLY valid;
b) Institution INTRINSICALLY valid; AND
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i) Legitime not impaired;
ii) Heir certain or ascertainable;
iii) No preterition.
c) Must be EFFECTIVE.
i) No predecease;
ii) No repudiation;
iii) No incapacity of heir.
Effect if will institute no heir
ART 841. A will shall be VALID even though it should
1) not contain an institution of an heir, or
2) such institution should not comprise the entire estate,
and
3) even though the person so instituted should not
accept the inheritance or should be incapacitated to
succeed.
In such cases the testamentary dispositions made in
accordance with law shall be complied with and the
remainder of the estate shall pass to the legal heirs.
(intestate succession applies)
Disposition in favor of a definite class
ART 845. Every disposition in favor of an unknown person
shall be VOID, unless by some event or circumstance his
identity becomes certain. However, a disposition in favor of a
de nite class or group of persons shall be VALID.
Unknown person — one who cannot be identi ed in the will; not
one who is a stranger to the testator.
Reviewer
Equality of heirs — FIRST RULE
ART 846. Heirs instituted without designation of shares shall
inherit in equal parts.
Exception is when the instituted heir is likewise a
compulsory heir, since he automatically gets ½ or the
legitime. His equal share will only pertain to the free portion.
Individuality of institution — SECOND RULE
ART 847. When the testator institutes some heirs individually
and others collectively as when he says, "I designate as my heirs
A and B, and the children of C," those collectively
designated shall be considered as individually
instituted, unless it clearly appears that the intention of the
testator was otherwise.
Simultaneity of institution — THIRD RULE
ART 849. When the testator calls to the succession a person
and his children, they are all deemed to have been instituted
simultaneously and not successively.
Austria v. Reyes
Before the institution of heirs may be annulled under Article 850 of
the Civil Code, the following requisites must concur:
First, the cause for the institution of heirs must be stated in the
will;
Second, the cause must be shown to be false; and
Third, it must appear from the face of the will that the testator
would not have made such institution if he had known the
falsity of the cause.
By RGL
for the 2022 Bar
Predecease of heirs
ART 856. A voluntary heir who dies before the testator
transmits nothing to his heirs.
A compulsory heir who dies before the testator, a person
incapacitated to succeed, and one who renounces the
inheritance, shall transmit no right to his own heirs except in
cases expressly provided for in this Code.
Effect of Predecease
1) As to VOLUNTARY heir — no right of representation; his
heir gets NOTHING;
2) As to COMPULSORY heir — his heir will get his share in the
legitime as his representative.
3) As to INCAPACITATED heir — same as for compulsory
heir;
4) As to REPUDIATING heir — no right of representation; his
heir gets NOTHING.
Preterition
Preterition or pretermission is the omission, whether intentional or
not, of a compulsory heir in the inheritance of a person. Effects:
1) Institution of heirs is VOID, without need of court action;
2) Legacies and devises shall remain VALID insofar as they are
NOT inofficious.
Requisites
a) There is a TOTAL omission in the inheritance;
b) The omission must be of a COMPULSORY heir; and
c) The compulsory heir omitted must be in the DIRECT line.
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ART 906. Any compulsory heir to whom the testator has left
by any title less than the legitime belonging to him may
demand that the same be fully satis ed. — Remedy of
COMPLETION OF LEGITIME.
Nuguid v. Nuguid
The will completely omits both of Rosario’s parents. This is a clear
case of preterition.
Article 854 merely nulli es "the institution of heir."
Considering, however, that the will before us solely provides for the
institution of petitioner as universal heir, and nothing more, the
result is the same. The entire will is null.
Morales v. Olondriz 2016
As the decedent's illegitimate son, Francisco is a compulsory heir in
the direct line. There was preterition.
Balanay v. Martinez
In the instant case, the preterited heir was the surviving spouse. His
preterition did not produce intestacy. Moreover, he signi ed his
conformity to his wife's will and renounced his hereditary rights.
Solano v. CA
The preterition of the GARCIAS should annul the institution
of ZONIA as heir only insofar as the legitime of the omitted
Reviewer
heirs is impaired. The Will, therefore, is valid subject to that
limitation.
In the case at bar, there is a speci c bequest or legacy so that Article
854 applies merely annulling the "institution of heir".
JLT Agro v. Balansag
In the case at bar, Don Julian did not execute a will since what
he resorted to was a partition inter vivos of his properties, as
evidenced by the court approved Compromise Agreement. Thus, it
is premature if not irrelevant to speak of preterition prior to
the death of Don Julian in the absence of a will depriving a
legal heir of his legitime.
3 Substitution of heirs
ART 857. Substitution is the appointment of another heir
so that he may enter into the inheritance in default of the heir
originally instituted.
Effect on the Substitution of Charges and Conditions Imposed
in the Institution. (Art 862)
GR: If substitute inherits, he MUST FULFILL the conditions
imposed on the original.
EXC:
1) If testator has expressly provided the contrary;
2) If the charges or conditions are personally applicable only
to the heir instituted.
Kinds of substitution
By RGL
for the 2022 Bar
ART 858. Substitution of heirs may be:
1) Simple or common; sustitución vulgar
2) Brief or compendious; sustitución brevilocua o
compendiosa
3) Reciprocal; sustitucion reciproca or
4) Fideicommissary. sustitución fideicomisaria
Simple or common
ART 859. The testator may designate one or more persons to
substitute the heir or heirs instituted in case such heir or heirs
1) should die before him, (predecease) or
2) should not wish, (renounce or repudiate) or
3) should be incapacitated to accept the inheritance.
(incapacity)
NOTE:
1. The substitute enters the inheritance, not as heir
succeeding the rst heir, but as an heir of the testator.
2. Instances when substitution is extinguished:
a) Substitute predeceases the testator;
b) Substitute is incapacitated;
c) Substitute renounces;
d) Institution of heir is annulled;
e) Institution or substitution is revoked;
f) Will is void or revoked.
Brief or compendious
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ART 860. Two or more persons may be substituted for one
(BRIEF); and one person for two or more heirs
(COMPENDIOUS).
Reciprocal
ART 861. The instituted heirs are also made substitutes of each
other.
Fideicommisary
1. An indirect substitution by virtue of which a testator
institutes a 1st heir, and charges him to preserve and transmit
the whole or part of the inheritance later on to a 2nd heir.
2. BOTH 1st and 2nd heirs inherit.
Requisites and Limitations:
a) FIRST HEIR, the fiduciary, called primarily to the
enjoyment of the property;
b) An OBLIGATION clearly imposed upon him TO
PRESERVE and TRANSMIT to a 3rd person the whole or
part of the inheritance;
c) SECOND HEIR — the fideicommisary heir;
d) 1st and 2nd heirs must be ONE DEGREE APART;
Relationship is counted from the 1st heir.
e) Both ALIVE (or conceived) at the time of testator’s death;
f) Made in an EXPRESS manner;
g) Must NOT BURDEN THE LEGITIME;
h) Must NOT BE CONDITIONAL.
ART 866. The second heir shall acquire a right to the
succession from the time of the testator's death, even though he
Reviewer
should die before the fiduciary. The right of the second heir
shall pass to his heirs.
In other words. The 2nd heir inherits not from the 1st heir but from
the testator himself.
The 2nd heir may predecease the 1st heir, transmitting his rights to his
own heirs. But neither should predecease the testator.
ART 868. The nullity of the deicommissary substitution
does not prejudice the validity of the institution of the heirs
rst designated; the fideicommissary clause shall simply be
considered as NOT written.
ART 869. A provision whereby the testator leaves to a person
the whole or part of the inheritance, and to another the
USUFRUCT, shall be valid. If he gives the usufruct to
various persons, not simultaneously, but successively, the
provisions of Article 863 shall apply.
Rabadilla v. CA
Neither is there a deicommissary substitution here. The instituted
heir is in fact allowed under the Codicil to alienate the property
provided the negotiation is with the near descendants or the sister of
the testatrix. Thus, a very important element of a deicommissary
substitution is lacking — the obligation clearly imposing upon the
rst heir the preservation of the property and its transmission to the
second heir.
A deicommissary substitution is void if the rst heir is not related
by rst degree to the second heir. Here, the near descendants are not
at all related to the instituted heir, Dr. Jorge Rabadilla.
By RGL
for the 2022 Bar
Perez v. Garchitorena
All the requisites of a deicommissary substitution are present in the
case now under consideration, to wit:
1. A rst heir primarily called to the enjoyment of the estate.
In this case the plainti was instituted an heiress, called to
the enjoyment of the estate.
2. An obligation clearly imposed upon the heir to preserve and
transmit to a third person the whole or a part of the estate.
3. A second heir. Such are the children of the heiress
instituted, who are referred to as such second heirs.
Thus, the inheritance in question does not belong to the heiress
instituted, the plainti herein, as her absolute property, but to her
children, from the moment of the death of the testatrix.
Crisologo v. Singson
The substitution of heirs herein is not expressly made of the
deicommissary kind. It merely provides that upon appellee's
death her share shall belong to the brothers of the testatrix. Thus, the
will established a mere sustitucion vulgar.
Time-limitation on inalienability
ART 870. The dispositions of the testator declaring all or part
of the estate inalienable for more than 20 years are VOID.
Conditional testamentary dispositions and
4
those with a term
Conditional
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ART 871. The institution of an heir may be made
conditionally, or for a certain purpose or cause.
NB: The condition may be imposed only on the free
portion, never on the legitime. (Art 904)
Disposición captatoria — VOID
ART 875. Any disposition made upon the condition that the
heir shall make some provision in his will in favor of the
testator or of any other person shall be VOID.
ART 879. If the potestative condition imposed upon the
heir is negative, or consists in not doing or not giving
something, he shall comply by giving a security (caucion
muciana) that he will not do or give that which has been
prohibited by the testator, and that in case of contravention
he will return whatever he may have received, together
with its fruits and interests.
NOTE:
1) Occurs when any or all of the following are stated:
a) Object of the institution;
b) Application of the property left by the testator;
c) The charge imposed by the testator.
2) One practical di erence between modal and conditional
institution is when the condition is suspensive. In modal,
inheritance can be immediately demanded upon giving of the
bond, whereas in conditional, property is placed under
administration in the meantime.
3) Some principles:
a) When in doubt between condition or mode, MODE;
Reviewer
b) When in doubt between mode or suggestion,
SUGGESTION;
c) Condition suspends but does not obligate; Mode
obligates but does not suspend.
5 Legitime
ART 886. Legitime is that part of the testator's property
which he cannot dispose of because the law has reserved it
for certain heirs who are, therefore, called compulsory heirs.
Manongsong v. Estimo
We nd no basis for the trial court's declaration that the sale
embodied in the Kasulatan deprived the compulsory heirs of
Guevarra of their legitimes. As opposed to a disposition inter vivos
by lucrative or gratuitous title, a valid sale for valuable
consideration does not diminish the estate of the seller. When
the disposition is for valuable consideration, there is no diminution
of the estate but merely a substitution of values, that is, the property
sold is replaced by the equivalent monetary consideration.
Sps. Joaquin v. CA
Petitioners do not have any legal interest over the properties subject
of the Deeds of Sale. As the appellate court stated, petitioners' right
to their parents' properties is merely inchoate and vests only upon
their parents' death. While still living, the parents of petitioners are
free to dispose of their properties.
Raymundo v. Vda de Suarez
By RGL
for the 2022 Bar
Herein respondents are primary compulsory heirs, excluding
secondary compulsory heirs, and preferred over concurring
compulsory heirs in the distribution of the decedent's estate. In ne,
Teo sta's ownership over the subject properties is not absolute. Since
Teo sta owns only a portion of the subject properties, only that
portion could have been, and was actually, levied upon and sold on
auction by the provincial sheri of Rizal.
ART 887. The following are compulsory heirs:
1) Legitimate children and descendants, with respect
to their legitimate parents and ascendants;
2) In default of the foregoing, legitimate parents and
ascendants, with respect to their legitimate children
and descendants;
3) The widow or widower;
4) Acknowledged natural children, and natural
children by legal ction;
5) Other illegitimate children referred to in article
287.
Compulsory heirs mentioned in Nos. 3, 4, and 5 are not
excluded by those in Nos. 1 and 2; neither do they exclude one
another. xxxx
ART 902. The rights of illegitimate children are transmitted
upon their death to their descendants, whether legitimate or
illegitimate.
Baritua v. CA
The parents of the deceased succeed ONLY when the latter dies
without a legitimate descendant. On the other hand, the surviving
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spouse concurs with all classes of heirs. Mere estrangement is most) LCD; Generally:
NOT a legal ground for the disquali cation of a surviving IC gets ½ of
1) Compulsory Heirs ALWAYS get at least ONE-HALF of the
spouse as an heir of the deceased spouse. one LCD.
TN: There Estate;
could be FD Only exception is an SS married in articulo mortis.
Concurrence of legitime
left.
SUMMARY OF CONCURRENCE OF LEGITIMES 2) LCD and LPA, whether concurring with other compulsory
S F heirs or not, ALWAYS get ONE-HALF of the estate.
Legend: LCD - Legitimate Children or Descendants; LPA - 899 LPA IC
S D
Legitimate Parents or Ascendants; SS - Surviving Spouse; 3) SS = 1 LCD; 1 IC = ½ of 1 LCD.
IC - Illegitimate Children; FD - Free Disposal SS only Specifically:
compulsory
Art DISTRIBUTION NOTES SS FD heir; At least 4) If an SS or IC concur with LPA, each of the former gets
living as spouse ONE-FOURTH.
888 LCD FD for 5 years.
If an SS and IC concur with LPA, IC gets ONE-FOURTH,
889 LPA FD 900 Marriage in SS gets ONE-EIGHTH.
articulo mortis 5) If SS and IC concur, each gets ONE-THIRD.
If 2 or more AND testator
LCD, SS gets SS (⅓) FD died within 3 6) If IPA and SS concur, each gets ONE-FOURTH.
SS
892 LCD FD equal to months from
(At most) Determination or computation
legitime of one marriage, SS
LCD. 1/3 ART 908. NET HEREDITARY ESTATE =
893 LPA SS FD 901 IC FD PROPERTY LEFT — DEBTS and CHARGES +
COLLATIONABLE DONATIONS
894 IC (⅓) SS (⅓) FD (⅓) If only IPA as
compulsory ART 909. Donations given to children shall be charged to
This assumes 1 their legitime.
heirs; If there
IC (At LCD and 1 IC. IPA FD
895 LCD FD are children
most) IC gets ½ of 903 Donations made to strangers shall be charged to free
left, IPA gets
one LCD. portion.
NOTHING.
896 LPA IC FD Order of Preference in the Hereditary Estate
IPA SS FD
1) Legitimes;
897 SS (At IC SS gets equal to
LCD TIPS AND TRICKS IN DETERMINING LEGITIME
898 most) (At legitime of one 2) Donations inter vivos;

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3) Preferred legacies and devises;
4) All other legacies and devises pro rata.
Cross Reference to Art 950
1) Art 911 applies when aside from the legacies and devises, there
are also legitimes and donations inter vivos to be preserved.
2) Art 950 only applies when there are no compulsory heirs and
donations to speak of. They are paid in the following order:
(RPSESA)
a) Remuneratory
b) Preferred;
c) Support
d) Education;
e) Speci c, Determinate things;
f) All others pro rata;
ART 912. Reduction of Inofficious Devises
1) If the reduction < ½ the value of devise, it goes to the
DEVISEE, but he must reimburse the compulsory heirs
of such reduction.
2) If reduction => ½, it goes to the COMPULSORY
HEIRS, but they must reimburse the devisee the amount
equal to the Value of Devise - Reduction.
ART 913. If the heirs or devisees do not choose to avail
themselves of the right granted by the preceding article, any
heir or devisee who did not have such right may exercise it;
should the latter not make use of it, the property shall be sold
at public auction at the instance of any one of the interested Representation of Disinherited Heir. The heirs of the disinherited
parties. heir can represent the latter only insofar as the legitime is concerned.
Presumptive Legitime
Requisites of a Valid Disinheritance
STEPS TO DETERMINE LEGITIMES, INOFFICIOUS
1) Made in a valid will;
DONATIONS AND EXCESSIVE LEGACIES AND DEVISES
2) Expressly made;
1) From the value of property left, SUBTRACT debts and
charges; 3) For a legal cause;
2) ADD to (1) all the COLLATIONABLE DONATIONS; 4) For a true cause;
3) From the NET HEREDITARY ESTATE, determine the 5) For an existing cause;
actual legitimes of the surviving compulsory heirs; 6) Total or complete;
4) CHARGE or IMPUTE donations; 7) Cause must be stated in the will;
5) ADD Donations to LEGACIES and DEVISES; 8) Disinherited heir be clearly identi ed;
9) Not have been revoked.
6 Disinheritance
Grounds
ART 918. Disinheritance without a speci cation of the cause,
TSDA = Testator, his Spouse, Descendant, Ascendant
or for a cause the truth of which, if contradicted, is not
proved, or which is not one of those set forth in this Code, Ground CD PA S
shall annul the institution of heirs insofar as it may
Guilty of an attempt of the life of the TSDA ✔ ✔ ✔
prejudice the person disinherited; but the devises and
legacies and other testamentary dispositions shall be Accused the testator, without ground, of a
valid to such extent as will not impair the legitime. crime for which the law prescribes ✔ ✔ ✔
ART 922. A subsequent reconciliation between the imprisonment for six years or more
o ender and the o ended person deprives the latter of the
By fraud, violence, intimidation, or undue
right to disinherit, and renders ine ectual any disinheritance
in uence cause the testator to make a will or to ✔ ✔ ✔
that may have been made.
change one
Characteristic of Reconciliation. There is no special form. It may be
express or implied. Unjusti able refusal to support ✔ ✔ ✔

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Convicted of adultery or concubinage with the Problem: A and B, legitimate children, were instituted ⅗ and ⅖ ART 950. If the estate should not be su cient to cover all
✔ ✔
spouse of the testator respectively of an estate worth P1M. A legacy of P100,000 is to be the legacies or devises, their payment shall be made in the
given to X. How much should A and B contribute? following order:
Maltreatment of the testator by word or deed ✔
Proportion Share in 1) Remuneratory legacies or devises;
Inheritance =
Free Portion of Free Legacy =
Leads a dishonorable or disgraceful life ✔ Heir P1M x
(-P250K) Portion P100K x 2) Legacies or devises declared by the testator to be
Proportion
(PFP) PFP preferential;
Civilly interdicted ✔
A 3) Legacies for support;
Loss of Parental Authority ✔ ✔ P600,000 P350,000 70% P70,000
(⅗) 4) Legacies for education;
Abandoned their children or induced to live a B 5) Legacies or devises of a speci c, determinate thing
P400,000 P150,000 30% P30,000
corrupt or immoral life, or attempted against ✔ (⅖) which forms a part of the estate;
their virtue
Remedies of Mortgagee if mortgaged property given as a devise: 6) All others pro rata.
Attempt by one of the parents against the life NB: Art 950 applies when there are only legacies and devises to
✔ a) ABANDON his security and prosecute his claim before the
of the other contend with. If there are legitimes or donations inter vivos to
probate court;
be respected, Article 911 should be applied instead.
Given cause for legal separation ✔ b) FORECLOSE the mortgage; OR
ART 957. The legacy or devise shall be without e ect:
c) RELY on the mortgage ALONE.
7 Legacies and devises 1) If the testator transforms the thing bequeathed in
When is right transmitted?
such a manner that it does not retain either the form
ART 924. All things and rights which are within the a) If SPECIFIC - from testator’s death; or the denomination it had;
commerce of man be bequeathed or devised. b) If GENERIC - from the time selection has been made, so as to 2) If the testator by any title or for any cause alienates
1. Bequeathed - personal property; Legacy ⇒ Legatee make speci c; the thing bequeathed xxxx. If after the alienation the
2. Devised - real property; Devise ⇒ Devisee c) If ALTERNATIVE - from the time choice has been made. thing should again belong to the testator, even if it be
by reason of nullity of the contract, the legacy or
Who has the duty of giving the legacies and devises? d) If ACQUIRED from a stranger - from the moment of
devise shall NOT thereafter be valid, unless the
acquisition.
GR: Estate, represented by the executor, or administrator reacquisition shall have been effected by virtue
with a will annexed. NB: A voluntary heir who predeceases the testator, or is of the exercise of the right of repurchase;
incapacitated, or repudiates, transmits NO RIGHT to his
EXC: Compulsory heirs, if duty given by the testator.
own heirs.

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3) If the thing bequeathed is totally lost during the
lifetime of the testator, or after his death without the
heir's fault. xxxx
ART 959. A disposition made in general terms in favor of the
testator's relatives shall be understood to be in favor of those
nearest in degree.
C Legal and Intestate Succession
General provisions; relationship and right of
1
representation
When does it take place — Art 960
1) If a person dies without a will, or with a void will, or one
which has subsequently lost its validity;
2) When the will does not institute an heir to, or dispose of
all the property belonging to the testator.
In such case, legal succession shall take place only with respect
to the property of which the testator has not disposed;
3) If the suspensive condition attached to the institution of heir
does not happen or is not ful lled, or if the heir dies before
the testator, or repudiates the inheritance, there being no
substitution, and no right of accretion takes place;
4) When the heir instituted is incapable of succeeding.
Who are the intestate heirs
In default of testamentary heirs, the law vests the inheritance, in
accordance with the rules hereinafter set forth, in the legitimate
Reviewer for the 2022 Bar
and illegitimate relatives of the deceased, in the surviving his portion shall accrue to the others of the same
spouse, and in the State. degree, save the right of representation when it should
Some Important Rules take place.
1) The right of representation takes place in the direct descending Accretion in Intestate Succession
line, NEVER in the ascending. (Art 972) A, B and C are legitimate children of D. X and Y
2) In the collateral line, the right of representation takes place are legitimate children of A.
only in favor of children of siblings, regardless of blood D leaves P300,000 intestate.
relationship. (Art 972)
1) If A is incapacitated, X and Y inherits
3) Siblings of full blood are entitled to DOUBLE the share of the P100K share of A by right of
those of the half-blood. (Art 1006) representation.
4) Should there be more than one ascendant of equal degree of 2) However, should A repudiate, his
the same line, they shall share per capita; should they be of P100K share will go to B and C by accretion.
di erent lines but of equal degree, ½ shall go to the paternal,
and the other ½ to the maternal. In each line, division shall still
be per capita. Effect of Repudiation
5) Exceptions to the rule of equal division: Suppose the estate is P1.2M. If A, B and C
repudiate, how will the estate be divided?
a) In the ascending line;
➔ W, X, Y and Z each gets P300K in his
b) Between relatives of the full and half blood;
OWN RIGHT.
c) In cases of representation.
If only C repudiates?
Bagunu v. Piedad ➔ A and B will each get P600K. W, X
and Y are excluded because the nearer
Respondent, being a relative within the third civil degree, of the late
excludes the farther; and Z is also excluded because there is
Augusto H. Piedad excludes petitioner, a relative of the fth degree,
no right of representation in repudiation.
from succeeding ab intestato to the estate of the decedent.
Suppose A, B and C are all incapacitated or that they all
Relationships predeceased D?
ART 968. If there are several relatives of the same degree, and
one or some of them are unwilling or incapacitated to succeed,
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➔ Then their children will inherit by right of representation.
X and Y will share the P400K share of A; while W and Z will
each inherit the P400K share of B and C respectively.
Representation
ART 970. Representation is a right created by ction of law,
by virtue of which the representative is raised to the place and
the degree of the person represented, and acquires the rights
which the latter would have if he were living or if he could
have inherited.
Right of Representation exists in case of:
1) PREDECEASE;
2) INCAPACITY;
3) DISINHERITANCE.
NOTE
a) In testacy, the right of representation covers ONLY THE
LEGITIME. There is no right to represent a voluntary heir.
b) In intestacy, the right covers ALL that the person being
represented would have inherited.
If the estate of D is P900K, A, B and C would get
P300K each but A is incapacitated:
a. X and Y shares the P150K legitime of A.
The remaining P150K will go to B and C by
accretion.
b. X and Y thus get P75K each, while B and
C get P375K each.
Reviewer for the 2022 Bar
Rules in Adoption Article 992, a basic postulate, enunciates what is so commonly
referred to in the rules on succession as the "principle of absolute
1) An adopted child CANNOT represent.
separation between the legitimate family and the illegitimate family."
2) Neither may an adopted child be represented. The doctrine rejects succession ab intestato in the collateral line
between legitimate relatives, on the one hand, and illegitimate
Two Ways of Inheriting relatives, on other hand, although it does not totally disavow such
succession in the direct line. Since the rule is predicated on the
1) Per stirpes or per capita;
presumed will of the decedent, it has no application, however, on
Per stirpes means inheritance by group, all those within the testamentary dispositions.
group inherit in equal shares.
2) By representation or by one’s own right.
2 Order of intestate succession
Inheritance by Nephews and Nieces Descending direct line
ART 978. Succession pertains, in the rst place, to the
descending direct line.
Leonardo v. CA
At most, petitioner would be an illegitimate child who has no right
B and C are brothers of A. A died leaving a P900,000 estate. If C to inherit ab intestato from the legitimate children and relatives of his
predecease A, divide the estate: father.
➔ B gets P450K and Y and Z each gets P225K.
If both B and C predecease A?
Pascual v. Pascual-Bautista
➔ Then X, Y and Z each gets P300K in their OWN RIGHT
As ruled in Diaz v. IAC, Article 992 of the Civil Code provides a
and thus inherits per capita.
barrier or iron curtain in that it prohibits absolutely a
succession ab intestato between the illegitimate child and the
A Renouncer may Represent BUT may not be represented.
legitimate children and relatives of the father or mother of said
legitimate child.
Manuel v. Ferrer
Estate of an illegitimate decedent
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ART 992. An illegitimate child has no right to inherit ab
intestato from the legitimate children and relatives of his father
or mother; nor shall such children or relatives inherit in the
same manner from the illegitimate child.
This article speaks of the BARRIER between the legitimate
and illegitimate families.
Ascending Direct Line
Legitimate parents and ascendants
ART 985. In default of legitimate children and descendants of
the deceased, his parents and ascendants shall inherit from
him, to the exclusion of collateral relatives.
ART 986. The father and mother, if living, shall inherit in
equal shares.
Should one only of them survive, he or she shall succeed to the
entire estate of the child.
ART 987. In default of the father and mother, the ascendants
nearest in degree shall inherit. xxxx
Illegitimate parents
ART 994. In default of the father or mother, an illegitimate
child shall be succeeded by his or her surviving spouse who
shall be entitled to the entire estate.
If the widow or widower should survive with brothers and
sisters, nephews and nieces, she or he shall inherit one-half of
the estate, and the latter the other half.
Collateral Line
Reviewer
ART 1003. If there are no descendants, ascendants, illegitimate 1)
children, or a surviving spouse, the collateral relatives shall
succeed to the entire estate of the deceased in accordance 2)
with the following articles.
ART 1004. Should the only survivors be brothers and sisters of 3)
the full blood, they shall inherit in equal shares.
ART 1005. Should brothers and sisters survive together with 4)
nephews and nieces, who are the children of the descendant's
brothers and sisters of the full blood, the former shall inherit
5)
per capita, and the latter per stirpes.
ART 1007. In case brothers and sisters of the half blood, some
6)
on the father's and some on the mother's side, are the only
survivors, all shall inherit in equal shares without distinction
as to the origin of the property.
The State 7)
ART 1011. In default of persons entitled to succeed in
accordance with the provisions of the preceding Sections, the
State shall inherit the whole estate.
ART 1014. If a person legally entitled to the estate of the 8)
deceased appears and les a claim thereto with the court
within ve years from the date the property was delivered
to the State, such person shall be entitled to the possession of
the same, or if sold, the municipality or city shall be
accountable to him for such part of the proceeds as may not
have been lawfully spent. 9)
CARDINAL PRINCIPLES OF INTESTATE SUCCESSION
10) There can be reserva troncal in legal succession.
By RGL
for the 2022 Bar
Even if there is an order of intestate succession, the
compulsory heirs are never excluded.
The nearer excludes the farther without prejudice to the
right of representation.
There is NO right of representation in the ascending line;
ONLY in the descending line.
In the collateral line, the right of representation is due only
to children of brothers and sisters.
The intestate shares are either EQUAL to or GREATER
than the legitime.
In case of partial intestacy, the legacies and devises must be
charged PROPORTIONATELY against the intestate heirs
who are given intestate shares greater than their legitimes, but
in no case should the legitime be impaired.
Grandchildren ALWAYS inherit by right of
representation. Thus, when all children repudiate, the
grandchildren inherit IN THEIR OWN RIGHT, since
representation is NOT PROPER.
Nephews and nieces inherit:
a) By right of representation when they concur with
aunts and uncles;
b) In their own right whenever they do not concur
with same.
Illegitimates of legitimates CANNOT represent because of
the BARRIER, but illegitimates or legitimates of illegitimates
CAN.
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11) A renouncer CAN represent, but CANNOT be 3) Repudiation; 2 Capacity to succeed by will or by intestacy
represented. 4) If a suspensive condition is not ful lled; Determination
12) A person who cannot represent a near relative cannot also 5) If there is failure to identify one particular heir, devisee, or
represent a relative farther in degree. ART 1034. In order to judge the capacity of the heir, devisee
legatee but the others can be identi ed (ine ectiveness of
or legatee, his quali cation at the time of the death of
institution).
Provisions Common to Testate and the decedent shall be the criterion.
D
Intestate Succession 1) If EARMARKED - NO accretion;
xxxx
If the institution, devise or legacy should be conditional, the
2) If NOT EARMARKED - there can be accretion.
1 Right of Accretion time of the compliance with the condition shall also
be considered.
ART 1015. Accretion is a right by virtue of which, when two ART 1019. The heirs to whom the portion goes by the right of
or more persons are called to the same inheritance, devise or accretion take it in the same proportion that they inherit.
ART 1039. Capacity to succeed is governed by the law of the
legacy, the part assigned to the one who renounces or cannot nation of the decedent.
receive his share, or who died before the testator, is added or ART 1020. The heirs to whom the inheritance accrues shall
Who may succeed
incorporated to that of his co-heirs, co-devisees, or co-legatees. succeed to all the rights and obligations which the heir who
renounced or could not receive it would have had. ART 1025. In order to be capacitated to inherit, the heir,
In legal succession devisee or legatee must be living at the moment the
How Accretion be avoided
succession opens, except in case of representation, when it is
1) By expressly designating a substitute; ART 1018. In legal succession the share of the person who proper.
repudiates the inheritance shall ALWAYS accrue to his
2) By expressly providing that no accretion should take place. A child already conceived at the time of the death of the
co-heirs.
REQUISITES decedent is capable of succeeding provided it be born later
Compulsory succession under the conditions prescribed in article 41.
1) Unity of object;
ART 1021. Among the compulsory heirs the right of
2) Plurality of subjects; accretion shall take place only when the free portion is left to Parish Priest of Victoria v. Rigor
3) Vacant portion; two or more of them, or to any one of them and to a stranger.
The said bequest refers to the testator's nearest male relative living at
4) Acceptance. Should the part repudiated be the legitime, the other co-heirs the time of his death and not to any inde nite time thereafter.
shall succeed to it in their own right, and NOT by the right Inasmuch as the testator was not survived by any nephew who
Causes (Art 1016 par 2)
of accretion. became a priest, the unavoidable conclusion is that the bequest in
1) Predecease; question was ine ectual or inoperative.
2) Incapacity; Accretion ONLY concerns the FREE portion, NEVER the legitime.
Who are incapable of succeeding

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ART 1027. The following are incapable of succeeding:
1) The priest who heard the confession of the testator
during his last illness, or the minister of the gospel
who extended spiritual aid to him during the same
period;
2) The relatives of such priest or minister of the
gospel within the fourth degree, the church, order,
chapter, community, organization, or institution to
which such priest or minister may belong;
3) A guardian with respect to testamentary
dispositions given by a ward in his favor before the
nal accounts of the guardianship have been
approved, even if the testator should die after the
approval thereof; nevertheless, any provision made by
the ward in favor of the guardian when the latter is his
ascendant, descendant, brother, sister, or spouse, shall
be valid;
4) Any attesting witness to the execution of a will,
the spouse, parents, or children, or any one claiming
under such witness, spouse, parents, or children;
5) Any physician, surgeon, nurse, health o cer or
druggist who took care of the testator during his last
illness;
6) Individuals, associations and corporations not
permitted by law to inherit.
ART 1033. The cause of unworthiness shall be without
effect if the testator
Reviewer
a) had knowledge thereof at the time he made the will,
or
b) if, having known of them subsequently, he should
condone them in writing.
Effect of alienations by the excluded heir
ART 1036. Alienations of hereditary property, and acts of
administration performed by the excluded heir, before the
judicial order of exclusion, are valid as to the third persons
who acted in good faith; but the co-heirs shall have a
right to recover damages from the disquali ed heir.
Prescription of action
ART 1040. The action for a declaration of incapacity and for
the recovery of the inheritance, devise or legacy shall be
brought within ve (5) years from the time the
disquali ed person took possession thereof. It may be
brought by any one who may have an interest in the
succession.
3 Acceptance and repudiation of inheritance
ART 1041. The acceptance or repudiation of the
inheritance is an act which is purely voluntary and free.
ART 1042. The e ects of the acceptance or repudiation shall
always retroact to the moment of the death of the decedent.
ART 1044. Any person having the free disposal of his property
may accept or repudiate an inheritance.
Any inheritance left to minors or incapacitated persons
may be accepted by their parents or guardians. Parents or
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for the 2022 Bar
guardians may repudiate the inheritance left to their wards
only by judicial authorization.
xxxx
ART 1049. Acceptance may be express or tacit.
An express acceptance must be made in a public or private
document.
A tacit acceptance is one resulting from acts by which the
intention to accept is necessarily implied, or which one would
have no right to do except in the capacity of an heir.
Acts of mere preservation or provisional administration do not
imply an acceptance of the inheritance if, through such acts,
the title or capacity of an heir has not been assumed.
ART 1050. An inheritance is deemed accepted:
1) If the heirs sells, donates, or assigns his right to a
stranger, or to his co-heirs, or to any of them;
2) If the heir renounces the same, even though
gratuitously, for the bene t of one or more of his
co-heirs;
3) If he renounces it for a price in favor of all his co-heirs
indiscriminately; but if this renunciation should be
gratuitous, and the co-heirs in whose favor it is made
are those upon whom the portion renounced should
devolve by virtue of accretion, the inheritance shall
NOT be deemed as accepted.
ART 1051. The repudiation of an inheritance shall be made
in a public or authentic instrument, or by petition
presented to the court having jurisdiction over the
testamentary or intestate proceedings.
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ART 1052. If the heir repudiates the inheritance to the
prejudice of his own creditors, the latter may petition the
court to authorize them to accept it in the name of the heir.
xxxx
ART 1053. If the heir should die without having accepted or
repudiated the inheritance his right shall be transmitted to
his heirs.
ART 1055. If a person, who is called to the same inheritance as
an heir by will and ab intestato, repudiates the inheritance in
his capacity as a testamentary heir, he is understood to
have repudiated it in both capacities.
Should he repudiate it as an intestate heir, without
knowledge of his being a testamentary heir, he may still
accept it in the latter capacity.
ART 1056. The acceptance or repudiation of an inheritance,
once made, is irrevocable, and cannot be impugned, except
when it was made through any of the causes that vitiate
consent, or when an unknown will appears.
ART 1057. Within thirty days after the court has issued an
order for the distribution of the estate xxxx, the heirs, devisees
and legatees shall signify to the court having jurisdiction
whether they accept or repudiate the inheritance.
If they do not do so within that time, they are deemed to
have accepted the inheritance.
Guy v. CA
Parents and guardians may not therefore repudiate the
Reviewer
inheritance of their wards without judicial approval. This is
because repudiation amounts to an alienation of property which
must pass the court's scrutiny in order to protect the interest of the
ward. Not having been judicially authorized, the Release and Waiver
of Claim in the instant case is VOID and will not bar private
respondents from asserting their rights as heirs of the deceased.
4 Partition and distribution of the estate
ART 1078. Where there are two or more heirs, the whole estate
of the decedent is, before its partition, owned in common by
such heirs, subject to the payment of debts of the deceased.
For a partition to be valid, the following must concur:
1) Decedent left no will;
2) Decedent left no debts, or if there were debts left all had been
paid;
Presumed NO debts if within 2 years from death, no
creditor has petitioned for letters of administration.
3) The heirs and liquidators are of age, or duly represented if
minors;
4) Partition was made by means of a public instrument or
a davit duly registered with the Register of Deeds.
ART 1079. Partition, in general, is the separation, division and
assignment of a thing held in common among those to whom
Requisites for Legal Redemption by Co-heirs
it may belong. The thing itself may be divided, or its value.
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ART 1080. Should a person make partition of his estate by an
act inter vivos, or by will, such partition shall be respected,
insofar as it does not prejudice the legitime of the compulsory
heirs.
A parent who, in the interest of his or her family, desires to
keep any agricultural, industrial, or manufacturing
enterprise intact, may avail himself of the right granted
him in this article, by ordering that the legitime of the other
children to whom the property is not assigned, be paid in
cash.
ART 1081. A person may, by an act inter vivos or mortis causa,
intrust the mere power to make the partition after his death to
any person who is not one of the co-heirs.
Mandatary is the person entrusted to make the partition and
should not be a co-heir. His partition may be approved or rejected
by the heirs.
If rejected, the probate court decides.
ART 1083. Every co-heir has a right to demand the division of
the estate unless the testator should have expressly forbidden
its partition, in which case the period of indivision shall not
exceed twenty years as provided in article 494. This power
of the testator to prohibit division applies to the legitime.
xxxx.
1) At least 2 heirs;
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2) One must sell his hereditary rights;
3) Buyer is a stranger;
4) Sale made before partition;
5) At least 1 co-heir demands redemption;
6) Demand must be made within 1 month from the time of
noti cation in writing; AND
7) Redemptioner must reimburse the price of sale.
Effects of Partition
ART 1092. After the partition has been made, the co-heirs
Rescission and Nullity of Partition
shall be reciprocally bound to warrant
a) the title to, and
b) the quality of,
each property adjudicated.
ART 1093. The reciprocal obligation of warranty referred to
in the preceding article shall be proportionate to the
respective hereditary shares of the co-heirs, but if any one of
them should be insolvent, the other co-heirs shall be liable for
his part in the same proportion, deducting the part
corresponding to the one who should be indemni ed.
Those who pay for the insolvent heir shall have a right of
action against him for reimbursement, should his nancial
condition improve.
ART 1094. An action to enforce the warranty among heirs
must be brought within ten (10) years from the date the
right of action accrues.
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CANNOT maintain an action for rescission on the ground of
ART 1095. If a credit should be assigned as collectible, the
lesion, but he shall have a right to be indemni ed in cash.
co-heirs shall not be liable for the subsequent insolvency of the
debtor of the estate, but only for his insolvency at the time ART 1104. A partition made with preterition of any of the
the partition is made. compulsory heirs shall NOT be rescinded, unless it be proved
that there was bad faith or fraud on the part of the other
The warranty of the solvency of the debtor can only be
enforced during the ve (5) years following the partition. persons interested; but the latter shall be proportionately
obliged to pay to the person omitted the share which belongs
Co-heirs do NOT warrant bad debts, if so known to, and to him.
accepted by, the distributee. But if such debts are not assigned
to a co-heir, and should be collected, in whole or in part, the ART 1105. A partition which includes a person believed to be
amount collected shall be distributed proportionately among an heir, but who is not, shall be VOID only with respect to such
the heirs. person.
IV Obligations and Contracts
ART 1098. A partition, judicial or extrajudicial, may also be
rescinded on account of lesion, when any one of the co-heirs Obligations
received things whose value is less, by at least one-fourth,
General provisions
than the share to which he is entitled, considering the value of
the things at the time they were adjudicated. Nature and e ect
ART 1099. The partition made by the testator CANNOT be Kinds
impugned on the ground of lesion, except Extinguishment
a) when the legitime of the compulsory heirs is thereby Contracts
prejudiced, or
General provisions
b) when it appears or may reasonably be presumed, that
the intention of the testator was otherwise. Essential requisites
Reformation of instruments
ART 1100. The action for rescission on account of lesion shall
prescribe after four (4) years from the time the partition was Interpretation of contracts
made.
Rescissible contracts
ART 1102. An heir who has alienated the whole or a
Voidable contracts
considerable part of the real property adjudicated to him
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Unenforceable contracts Law (Art Imposed by the law itself Art 195 Civil Code - 1) Law
Void or inexistent contracts 1158) support
ART 1158. Obligations derived from law are not presumed.
Natural Obligations Contracts Arise from stipulation of Obligation to repay a loan Only those expressly determined in this Code or in special
(Art 1159) parties (Art 1306); by virtue of an agreement laws are demandable xxxx.
Estoppel

Trusts Quasi- Arise from lawful, Return money paid by Bautista v. F.O. Borromeo, Inc.
contracts voluntary and unilateral mistake (Art 2154)
Quasi-Contracts Borromeo paid the widow of its employee, Quintin Delgado,
acts and which are
enforceable to the end compensation (death bene t) and funeral expenses for the latter's
A Obligations death while in the course of employment. This obligation arises
that no one shall be
unjustly enriched (Art from law - Section 2 of the Workmen's Compensation Act.
1 General provisions 2142).
2) Contracts
ART 1156. An obligation is a juridical necessity to give, to do Acts or Arise from civil liability Restitution,
ART 1159. Obligations arising from contracts have the force
or not to do. omissions which is the consequence indemni cation,
of law between the contracting parties and should be complied
punished of a criminal o ense (Art reparation.
Obligation is a legal relation established between one party and with in good faith.
by law 1161)
another, whereby the latter is bound to the ful llment of a prestation
which the former may demand of him. Quasi- Torts; Arise from damage Art 2193 - head of the Maritime Company of the Philippines v.
delicts caused to another family liable for damage Reparations Commission
Elements
through an act or caused by things thrown Every contract contains not only what has been explicitly stipulated,
a) An active subject — the obligee or creditor;
omission, there being or falling from building in but the statutory provisions that have any bearing on the matter.
b) A passive subject — the obligor or debtor; fault or negligence, but which he resides;
no contractual relation Art 2183 - Possessor of an The rule is that the law forms part of, and is read into, every
c) The object or prestation; contract, unless clearly excluded therefrom in those cases where such
exists between the animal to pay for damages
The subject matter of an obligation — and may consist of parties. (Art 2176) which it may cause. exclusion is allowed.
giving a thing, doing or not doing a certain act.
ART 1157. Obligations arise from: 3) Quasi-Contracts
d) The e cient cause — the vinculum or juridical tie.
ART 1160. Obligations derived from quasi-contracts shall
Sources be subject to the provisions of Chapter 1, Title XVII, of this
Book.
Source De nition Examples

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A quasi-contract is that juridical relation resulting from a lawful,
voluntary, and unilateral act, and which has for its purpose the
payment of indemnity to the end that no one shall be unjustly enriched
or bene ted at the expense of another. It could either be:
a) Negotiorum gestio — the voluntary management of the
property or a airs of another without the knowledge or
consent of the latter (Art 2144). This does not apply when
i) property or business is not neglected, in which case
provisions on unauthorized contracts shall govern,
and
ii) the manager has been tacitly authorized by the owner,
in which case the rules on agency shall govern.
b) Solutio indebiti — created when something is received when
there is no right to demand it and it was unduly delivered
through mistake (Art 2154). Whether the payment was made
by mistake is a judicial matter. General presumption: “money
paid by one to another was due to the latter”.
c) Other cases — Arts 2164 - 2175. Recovery may be allowed in
view of the peculiar circumstances or factual environment to
the end that a recipient of bene ts or favors resulting from
lawful, voluntary and unilateral acts of another may not be
unjustly enriched at the expense of the latter.
Cruz v. J.M. Tuason & Co., Inc.
A presumed quasi-contract cannot emerge as against one party when
the subject matter thereof is already covered by an existing contract
with another party.
Reviewer
National Commercial Bank of Saudi Arabia v. CA
Solutio indebiti applies where:
1) a payment is made when there exists no binding relation
between the payor, who has no duty to pay, and the person
who received the payment, and
2) the payment is made through mistake, and not through
liberality or some other cause.
Here, PBC and NCBSA were bound by their contract, the letter of
credit. As such, the cause of action was based on a contract, and the
prescriptive period is ten, not six years.
Siga-an v. Villanueva
Under Article 1960, if the borrower of loan pays interest when there
has been no stipulation therefor, the provisions of the Civil Code
concerning solutio indebiti shall be applied.
4) Delict
ART 1161. Civil obligations arising from criminal o enses shall
be governed by the penal laws, subject to the provisions of
Article 2177, and of the pertinent provisions on Human
Relations, and of Title XVIII, regulating damages.
DMPI Employees Credit Cooperative, Inc. v. Velez
Every person criminally liable for a felony is also civilly liable. Civil
liability includes restitution, reparation for damage caused, and
indemni cation of consequential damages.
The case herein, an independent civil action for damages on
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for the 2022 Bar
account of the fraud committed against Villegas under Article 33,
may proceed independently even if there was no reservation.
Hun Hyung Park v. Eung Won Choi
The civil action based on delict may, however, be deemed
extinguished if there is a nding on the nal judgment in the
criminal action that the act or omission from which the civil
liability may arise did not exist.
5) Quasi-delict
ART 1162. Obligations derived from quasi-delicts shall be
governed by the provisions of Chapter 2, Title XVII of this
Book, and by special laws.
A quasi-delict is a fault or act of negligence or omission of care
which causes damage to another, there being no pre-existing
contractual relations between the parties. There must be:
1) An act or omission by the defendant;
2) Fault or negligence by the defendant;
3) Damage caused to the plainti ;
4) Direct relation or connection of cause and e ect between 1
and 3; and
5) No pre-existing contractual relations between the parties.
Lasam v. Smith
In a legal sense and, consequently, also in relation to contracts, a caso
fortuito presents the following essential characteristics:
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1) The cause of the unforeseen and unexpected occurrence, or
of the failure of the debtor to comply with his obligation,
must be independent of the human will.
2) It must be impossible to foresee the event which
constitutes the caso fortuito, or if it can be foreseen, it must
be impossible to avoid.
3) The occurrence must be such as to render it impossible for
the debtor to ful ll his obligation in a normal manner.
and
4) The obligor (debtor) must be free from any participation
in the aggravation of the injury resulting to the creditor.
1. Compliance with Obligations
Elcano v. Hill
In this jurisdiction, the separate individuality of a cuasi-delito or
culpa aquiliana under the Civil Code has been fully and clearly
recognized, even with regard to a negligent act for which the
wrongdoer could have been prosecuted and convicted in a criminal
case and for which, after such a conviction, he could have been sued
for this civil liability arising from his crime.
The acquittal of Reginald Hill in the criminal case has not
extinguished his liability for quasi-delict, hence that acquittal is not
a bar to the instant action against him.
Virata v. Ochoa
It is settled that in negligence cases, the aggrieved parties may
choose between an action under the RPC or for quasi-delict
Duties of debtor in obligation to give a determinate thing
Reviewer
under Article 2176. What is prohibited by Article 2177 is to
recover twice for the same negligent act.
Neplum, Inc. v. Orbeso
Deemed instituted in every criminal prosecution is the civil liability
arising from the crime or delict per se (civil liability ex delicto), but
NOT those liabilities from quasi-delicts, contracts or
quasi-contracts.
2 Nature and e ect
1) In Obligations to Give
ART 1163. Every person obliged to give something is also
obliged to take care of it with the proper diligence of a good
father of a family, unless the law or the stipulation of the
parties requires another standard of care.
ART 1165. When what is to be delivered is a determinate
thing, the creditor, in addition to the right granted him by
article 1170, may compel the debtor to make the delivery.
If the thing is indeterminate or generic, he may ask that the
obligation be complied with at the expense of the debtor.
If the obligor delays, or has promised to deliver the same thing
to two or more persons who do not have the same interest, he
shall be responsible for any fortuitous event until he has
e ected the delivery.
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1. Preserve or take care of the thing due;
2. Deliver the fruits of the thing (Art 1164);
3. Deliver its accessions and accessories (Art 1166);
4. Deliver the thing itself; and
5. Answer for damages in case of non-ful llment or breach (Art
1170).
Duties of debtor in obligation to deliver a generic thing
1. Deliver a thing which is of the quality intended by the parties
considering the purpose of the obligation and other
circumstances (Art 1246); and
2. Be liable for damages in case of fraud, negligence, or delay, in
the performance of his obligation, or contravention of the
tenor thereof (Art 1170).
Remedies of creditor when debtor fails to comply. Demand
a) Speci c performance;
b) Rescission or cancellation; or
c) Damages.
ART 1166. The obligation to give a determinate thing
includes that of delivering all its accessions and accessories,
even though they may not have been mentioned.
Fidelity & Deposit Co. v. Wilson
The delivery of a thing constitutes a necessary and indispensable
requisite for the purpose of acquiring the ownership of the same by
virtue of a contract. The ownership, the property right, is only
derived from the delivery of a thing.
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2) In Obligations to Do
ART 1167. If a person obliged to do something fails to do it,
the same shall be executed at his cost.
This same rule shall be observed if he does it in contravention
of the tenor of the obligation. Furthermore, it may be decreed
that what has been poorly done be undone.
Remedies of creditor if debtor fails to do
a) To have the obligation performed by himself or by
another at debtor’s expense.
b) Plus damages.
Chavez v. Gonzales
The defendant-appellee contravened the tenor of his obligation
because he not only did not repair the typewriter but returned it "in
shambles." He is liable under Article 1167 for the cost of executing
the obligation in a proper manner. In addition, he is likewise liable,
under Article 1170, for the cost of the missing parts for in his
obligation to repair the typewriter he was bound, but failed, to
return it in the same condition it was when he received it.
Tanguilig v. CA
Whether petitioner is under obligation to reconstruct the windmill
after it collapsed.
YES. When the windmill failed to function properly it became
incumbent upon petitioner to institute the proper repairs in
accordance with the guaranty stated in the contract. Thus,
respondent cannot be said to have incurred in delay; instead, it is
Reviewer
petitioner who should bear the expenses for the reconstruction of the
windmill. Article 1167 is explicit on this point that if a person
obliged to do something fails to do it, the same shall be executed at
his cost.
Vil-Rey Planners and Builders v. Lexber, Inc. 2016
Breach of contract is the failure of a party, without legal reason,
to comply with the terms of a contract or perform any promise that
forms either a part or the whole of it.
The reciprocal obligation in this case was Lexber's payment of the
50% balance upon Vil-Rey's completion of the works. However,
despite the grant of extension, and even after the lapse of another
ve-day grace period, Vil-Rey failed to nish the works.
The law provides that the obligation of a person who fails to
ful ll it shall be executed at that person's cost. Thus, Vil-Rey
should be held liable for the amount paid by Lexber to another
contractor to complete the works. Article 1169 provides that in
reciprocal obligations, delay by one of the parties begins from the
moment the other ful lls the obligation.
3) In Obligations Not to Do
ART 1168. When the obligation consists in not doing, and the
obligor does what has been forbidden him, it shall also be
undone at his expense.
As a rule, the remedy of the obligee is the undoing of the
forbidden thing plus damages (Art 1170). If it is not possible,
physically or legally, or because of the rights acquired by third
persons who acted in good faith, the remedy is an action for
damages caused by the violation.
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2. Breach of Obligations and Grounds for Liability
ART 1170. Those who in the performance of their obligations
are guilty of fraud, negligence, or delay, and those who in
any manner contravene the tenor thereof, are liable for
damages.
Areola v. CA
Respondent insurance company is liable by way of damages for
the fraudulent acts committed by Malapit that gave occasion to the
erroneous cancellation of subject insurance policy. Its earlier act of
reinstating the insurance policy can not obliterate the injury in icted
on petitioner-insured.
1) Fraud
ART 1171. Responsibility arising from fraud is demandable in
all obligations. Any waiver of an action for future fraud
is void.
Fraud (deceit or dolo) — deliberate or intentional evasion of the
normal ful llment of an obligation.
a) Includes any act, omission or concealment involving some
kind of malice or dishonesty. It is synonymous to bad faith.
Moral damages may be recovered.
b) Art 1170 refers to incidental fraud (dolo incidente)
committed in the performance of an obligation already
existing because of contract. It is di erent from causal fraud
(dolo causante) or fraud employed in the execution of a
contract under Art 1338, which vitiates consent and makes the
contract voidable.
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2) Negligence
ART 1172. Responsibility arising from negligence in the
performance of every kind of obligation is also demandable,
but such liability may be regulated by the courts, according to
the circumstances.
Picart v. Smith
The test by which to determine the existence of negligence in a
particular case may be stated as follows: Did the defendant in
doing the alleged negligent act use that reasonable care and
caution which an ordinarily prudent person would have used
in the same situation? If not, then he is guilty of negligence.
The proper criterion for determining the existence of
negligence in a given case is this — Conduct is said to be negligent
when a prudent man in the position of the tortfeasor would have
foreseen that an e ect harmful to another was su ciently probable
to warrant his foregoing the conduct or guarding against its
consequences.
PNB v. CA
Damages are not intended to enrich the complainant at the expense
of the defendant, and there is no hard-and-fast rule in the
determination of what would be a fair amount of moral damages
since each case must be governed by its own peculiar facts. The
yardstick should be that it is not palpably and scandalously
excessive.
Reviewer for the 2022 Bar
Samson v. CA the diligence required of it constitutes negligence, and negates its
assertion that it is a mortgagee in good faith.
Bad faith is essentially a state of mind a rmatively operating with
furtive design or with some motive of ill-will. Bad faith is thus
synonymous with fraud and involves a design to mislead or deceive
Vinluan v. CA
another, not prompted by an honest mistake as to one's rights or
duties, but by some interested or sinister motive. In case of injury to a passenger due to the negligence of the driver of
the bus on which he was riding and of the driver of another vehicle,
In contracts, the kind of fraud that will vitiate consent is known as
the drivers as well as the owners of the two vehicles are jointly and
dolo causante or causal fraud which is basically a deception
severally liable for damages.
employed by one party prior to or simultaneous to the contract in
order to secure the consent of the other.
Metro Manila Transit Corp. v. CA
PNCC v. CA Petitioner's attempt to prove its diligentissimi patris familias in the
selection and supervision of employees through oral evidence must
The petitioner failed to exercise the requisite diligence in maintaining
fail as it was unable to buttress the same with any other evidence,
the NLEX safe for motorists. PASUDECO's negligence in
object or documentary, which might obviate the apparent biased
transporting sugarcanes without proper harness/straps, and that of
nature of the testimony.
PNCC in removing the emergency warning devices, were two
successive negligent acts which were the direct and proximate
cause of Latagan's injuries. As such, PASUDECO and PNCC are
jointly and severally liable. Calalas v. CA
The doctrine of proximate cause is applicable only in actions
for quasi-delict, not in actions involving breach of contract.
Prudential Bank v. Rapanot, et al. 2017 The doctrine is a device for imputing liability to a person where there
is no relation between him and another party. In such a case, the
If only the Bank exercised the highest degree of diligence required
obligation is created by law itself. But, where there is a pre-existing
by the nature of its business as a nancial institution, it would have
contractual relation between the parties, it is the parties themselves
discovered that (i) Golden Dragon did not comply with the approval
who create the obligation, and the function of the law is merely to
requirement imposed by Section 18 of PD 957, and (ii) that Rapanot
regulate the relation thus created.
already paid a reservation fee and had made several installment
payments in favor of Golden Dragon. The Bank's failure to exercise
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moment one of the parties ful lls his obligation, delay by

Air France v. Carrascoso
Although the relation of passenger and carrier is "contractual both in
origin and nature" nevertheless "the act that breaks the contract
may be also a tort".
Barredo v. Garcia
A quasi-delict or "culpa aquiliana" is a separate legal
institution under the Civil Code, with a substantivity all its own,
and individuality that is entirely apart and independent from a delict
or crime.
Macalinao v. Ong
Under local jurisprudence, the following are the requisites for the
application of res ipsa loquitur:
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
An act or omission causing damage to another may give rise to two
the other begins.
separate civil liabilities on the part of the o ender, i.e.,
1) Civil liability ex delicto, under Article 100 of the RPC; GR: Demand is necessary to put debtor in default or mora.
and EXC: Art 1169(2)
2) Independent civil liabilities, such as those 1) When the law so provides;
a) not arising from an act or omission complained of as a 2) When the obligation expressly so provides;
felony, e.g., culpa contractual or obligations arising
3) When time is of the essence;
from law under Article 31 of the Civil Code,
intentional torts under Articles 32 and 34, and culpa 4) When demand would be useless, as when the debtor has
aquiliana under Article 2176 of the Civil Code; or rendered it beyond his power to perform;
b) where the injured party is granted a right to le an 5) When debtor has expressly acknowledged that he really is in
action independent and distinct from the criminal default.
action under Article 33 of the Civil Code. Kinds of Mora
At the time of the ling of the complaint for damages in this case, the 1) Mora solvendi — on the part of debtor;
cause of action ex quasi delicto had already prescribed. Nonetheless,
2) Mora accipiendi — on the part of creditor;
petitioners can pursue the remaining avenue opened for them by
their reservation, i.e., the surviving cause of action ex delicto. This is 3) Compensatio morae — both are in default; as if neither is in
so because the prescription of the action ex quasi delicto does default.
not operate as a bar to an action to enforce the civil liability
Mora solvendi
arising from crime especially as the latter action had been expressly
reserved. Requisites

3) The possibility of contributing conduct which would make
the plainti responsible is eliminated.
There exists a fourth requisite, that the defendant fails to o er any
explanation tending to show that the injury was caused by his or her
want of due care.
Sps Santos v. Pizarro
3) Delay
ART 1169. Those obliged to deliver or to do something incur
in delay from the time the obligee judicially or extrajudicially
demands from them the ful llment of their obligation. xxx
In reciprocal obligations, neither party incurs in delay if the
other does not comply or is not ready to comply in a proper
manner with what is incumbent upon him. From the
1) The obligation must be due, enforceable, and already
liquidated or determinate in amount;
2) There must be non-performance;
3) There must be a demand, unless not required;
4) The demand must be for the obligation that is due.
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1) If the debtor is in default, he may be liable for interest or
damages;
2) He may also have to bear the risk of loss;
3) He is liable even for a fortuitous event, subject to
mitigation.
Mora accipiendi
When creditor unjusti ably refuses to accept payment or
performance at the time it can be done.
Aerospace Chemical Industries, Inc. v. CA
Whether damages have been properly awarded against petitioner for
its unjustified delay in the performance of its obligation under the
contract. YES.
Records reveal that a tanker ship had to pick-up sulfuric acid in
Basay, then proceed to get the remaining stocks in Sangi, Cebu. A
period of three days appears to us reasonable for a vessel to travel
between Basay and Sangi. The general rule that before delivery, the
risk of loss is borne by the seller who is still the owner, is not
applicable in this case because petitioner had incurred delay in
the performance of its obligation as per Article 1504 of the Civil
Code.
Binalbagan Tech, Inc. v. CA
A party to a contract cannot demand performance of the other
party’s obligations unless he is in a position to comply with his
own obligations. Similarly, the right to rescind a contract can be
demanded only if a party thereto is ready, willing and able to comply
Reviewer
with his own obligations thereunder (Art 1191).
Petitioner was evicted from the subject subdivision lots in 1974 by
virtue of a court order and reinstated to the possession thereof only
in 1982. During that period, Echaus was not in a legal position to
demand compliance of the prestation of petitioner to pay the price of
said subdivision lots. In short, her right to demand payment was
suspended during that period.
Bricktown Development Corp. v.
Amor Tierra Development Corp.
A grace period is a right, not an obligation, of the debtor. When
unconditionally conferred, the grace period is e ective without
further need of demand either calling for the payment of the
obligation or for honoring the right. The grace period must not be
likened to an obligation. The provisions of Article 1169 would nd
no relevance.
While petitioner corporation acted within its legal right to declare
the contracts to sell rescinded or cancelled, it would be
unconscionable to sanction the forfeiture by petitioner of
payments made to it by private respondent.
Leaño v. CA
On the issue of whether Leaño was in delay in paying the
amortizations, we rule that while the contract provided that the total
purchase price was payable within a ten-year period, the same
contract speci ed that the purchase price shall be paid in monthly
installments for which the corresponding penalty shall be imposed in
case of default. The default committed by Leaño could be
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compensated by the interest and surcharges imposed upon her under
the contract in question.
Lee v. De Guzman, Jr.
It is well-settled that when after a judgment has become nal and
executory, facts and circumstances transpire which render its
execution impossible or unjust, the interested party may ask a
competent court to stay its execution or prevent its enforcement.
Unfortunately it is not possible for Motorcars to comply with the
writ of execution since admittedly, the then Delta Motors who
manufactured 1983 models of Toyota Liftback had already closed
shop. The relief left for Lee is that found under Article 1170. There
was therefore delay in the delivery of the subject vehicle which
entitles petitioner to be awarded damages.
Vermen Realty v. CA
Article 1191 provides the remedy of rescission in (more
appropriately, the term is “resolution”) in case of reciprocal
obligations, where one of the obligors fails to comply with what is
incumbent upon him. The general rule is that rescission of a
contract will not be permitted for a slight or causal breach, but
only for such substantial and fundamental breach as would
defeat the very object of the parties in executing the agreement.
Petitioner would never be able to ful ll its obligation in allowing
respondent to exercise the option to transfer from Phase I to Phase
II, as the construction of Phase II has ceased. The impossibility of
fulfillment of the obligation on the part of petitioner
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necessitates resolution of the contract for indeed, the
non-ful llment of the obligation constitutes substantial breach of
the O setting Agreement.
Heirs of Luis Bacus v. CA
Obligations under an option to buy are reciprocal obligations. In
Nietes v. CA, we held that notice of the creditor's decision to
exercise his option to buy need not be coupled with actual payment
of the price, so long as this is delivered to the owner of the property
upon performance of his part of the agreement. Consequently, since
the obligation was not yet due, consignation in court of the purchase
price was not yet required.
Corollary, private respondents did not incur in delay when they
did not yet deliver payment nor make a consignation before the
expiration of the contract.
⭐Lara’s Gift and Decors v. 2019 En Banc
Midtown Industrial Sales
With regard to an award of interest in the concept of actual and
compensatory damages, the rate of interest, as well as the accrual
thereof, is imposed, as follows:
1. When the obligation is breached, and it consists in the
payment of a sum of money, i.e., a loan or forbearance of
money, goods, credits or judgments, the interest due shall
be that which is stipulated by the parties in writing,
provided it is not excessive and unconscionable.
2. In the absence of stipulated interest, in a loan or forbearance
Reviewer
of money, goods, credits or judgments, the rate of interest
on the principal amount shall be the prevailing legal
interest prescribed by the BSP.
For both Nos 1 and 2, the interest shall be computed from
default, i.e., from extrajudicial or judicial demand in
accordance with Article 1169 of the Civil Code, UNTIL
FULL PAYMENT, without compounding any interest
unless compounded interest is expressly stipulated by the
parties, by law or regulation.
Interest due on the principal amount accruing as of judicial
demand shall SEPARATELY earn legal interest at the
prevailing rate prescribed by the BSP, from the time of
judicial demand UNTIL FULL PAYMENT.
3. When the obligation, not constituting a loan or forbearance
of money, goods, credits or judgments, is breached, an
interest on the amount of damages awarded may be imposed
in the discretion of the court at the prevailing legal
interest prescribed by the BSP.
No interest, however, shall be adjudged on unliquidated
claims or damages until the demand can be established with
reasonable certainty.
Accordingly, where the amount of the claim or damages is
established with reasonable certainty, the prevailing legal
interest shall begin to run from the time the claim is made
extrajudicially or judicially UNTIL FULL PAYMENT, but
when such certainty cannot be so reasonably established at
the time the demand is made, the interest shall begin to run
only from the date of the judgment of the trial court
UNTIL FULL PAYMENT. The actual base for the
computation of the interest shall, in any case, be on the
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principal amount nally adjudged, without compounding
any interest unless compounded interest is expressly
stipulated by law or regulation.
2015 En Banc re Just
Republic v. Hon. Mupas
Compensation
Contrary to the Government’s opinion, the interest award is not
anchored either on the law of contracts or damages; it is based
on the owner’s constitutional right to just compensation. The
di erence in the amount between the nal payment and the initial
payment – in the interim or before the judgment on just
compensation becomes nal and executory – is not unliquidated
damages which do not earn interest until the amount of damages is
established with reasonable certainty. The di erence between nal
and initial payments forms part of the just compensation that the
property owner is entitled from the date of taking of the property.
Republic v. CA ruled that just compensation is e ectively a
forbearance of money, and not indemnity for damages.
Odiamar v. Valencia 2018
The Court notes that there are two (2) types of interest, namely,
monetary interest and compensatory interest.
Monetary interest is the compensation xed by the parties for the
use or forbearance of money. On the other hand, compensatory
interest is that imposed by law or by the courts as penalty or
indemnity for damages.
Anent monetary interest, it is an elementary rule that no interest
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shall be due unless it has been expressly stipulated in writing.
In this case, no monetary interest may be imposed on the loan
obligation, considering that there was no written agreement expressly
providing for such. This notwithstanding, such loan obligation may
still be subjected to compensatory interest, following Nacar.
Heirs of Jarque v. Jarque 2018
Since the obligation of P950.00 is a forbearance of money, the
amount shall earn interest from the time of demand in the
counterclaim. The awards of moral and exemplary damages and
attorney's fees shall earn interest at the rate of 6% p.a. from the time
they became determinable, i.e., date of the MCTC Decision, until
nality of judgment. The total amount shall thereafter earn interest
at the rate of 6% p.a. from such nality of judgment until
satisfaction.
Contravention of Tenor of Obligations
Pacmac v. IAC
The parties’ contract of exclusive distributorship arrangement was
still in existence on August 3, 1965 when VULCAN decided to stop
deliveries of its products to PACMAC. VULCAN's unilateral act
of terminating the contract without legal justi cation makes it
liable for damages su ered by PACMAC pursuant to Article 1170.
FGU Insurance Corp. v. G.P. Sarmiento Trucking
A breach upon the contract confers upon the injured party a
valid cause for recovering that which may have been lost or
Reviewer
su ered. The remedy serves to preserve the interests of the
promisee that may include his
a) “expectation interest,” which is his interest in having
the bene t of his bargain by being put in as good a
position as he would have been in had the contract been
performed, or his
b) “reliance interest,” which is his interest in being
reimbursed for loss caused by reliance on the contract by
being put in as good a position as he would have been in
had the contract not been made; or his
c) “restitution interest,” which is his interest in having
restored to him any bene t that he has conferred on the
other party.
3. E ects of Fortuitous Events in Obligations
ART 1174. Except
a) in cases expressly speci ed by the law, or
b) when it is otherwise declared by stipulation, or
c) when the nature of the obligation requires the
assumption of risk,
no person shall be responsible for those events which
could not be foreseen, or which, though foreseen, were
inevitable.
Republic v. Luzon Stevedoring
Whether nor not the collision of appellant's barge with the supports or
piers of the Nagtahan bridge was in law caused by fortuitous event or
force majeure. NO. The very measures adopted by appellant
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prove that the possibility of danger was not only foreseeable,
but actually foreseen, and was not caso fortuito.
Respondent, knowing and appreciating the perils posed by the
swollen stream and its swift current, voluntarily entered into a
situation involving obvious danger; it therefore assumed the risk,
and can not shed responsibility merely because the precautions it
adopted turned out to be insu cient.
Austria v. CA
Whether in a contract of agency (consignment of goods for sale) it is
necessary that there be prior conviction for robbery before the loss of the
article shall exempt the consignee from liability for such loss. NO.
To require in the present action for recovery the prior conviction of
the culprits in the criminal case, in order to establish the robbery as a
fact, would be to demand proof beyond reasonable doubt to
prove a fact in a civil case.
Southeastern College, Inc. v. CA
Whether the damage on the roof of the building of private respondents
resulting from the impact of the falling portions of the school building’s
roof ripped off by the strong winds of typhoon “Saling”, was, within
legal contemplation, due to fortuitous event. YES. In order to be
exempt from liability arising from any adverse consequence
engendered thereby, there should have been no human
participation amounting to a negligent act.
Here, petitioner has not been shown negligent or at fault regarding
the construction and maintenance of its school building in question
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and that typhoon “Saling” was the proximate cause of the
damage su ered by private respondents’ house.
Schmitz Transport and Brokerage Corp.
v. Transport Venture, Inc.
The principle embodied in the act of God doctrine strictly requires
that the act must be occasioned solely by the violence of nature.
When the e ect is found to be in part the result of the participation
of man, whether due to his active intervention or neglect or failure to
act, the whole occurrence is then humanized and removed from
the rules applicable to the acts of God.
Here, TVI’s failure to promptly provide a tugboat did not only
increase the risk that might have been reasonably anticipated
during the shipside operation, but was the proximate cause of
the loss.
Sps Poon v. Prime Savings Bank 2016
Resolution is a principal action based on a breach by a party,
while rescission under Article 1383 is a subsidiary action limited
to cases of rescission for lesion under Article 1381.
The period during which the bank cannot do business due to
insolvency is NOT a fortuitous event, unless it is shown that the
government's action to place a bank under receivership or liquidation
proceedings is tainted with arbitrariness, or that the regulatory body
has acted without jurisdiction.
Alternatively, respondent lessee invokes the doctrine of
unforeseen event under Article 1267. Tagaytay Realty Co., Inc.
Reviewer
v. Gacutan lays down the requisites for the application of Article
1267, as follows:
1. The event or change in circumstance could not have been
foreseen at the time of the execution of the contract.
2. It makes the performance of the contract extremely
di cult but not impossible.
3. It must not be due to the act of any of the parties.
4. The contract is for a future prestation.
The di culty of performance should be such that the party seeking
to be released from a contractual obligation would be placed at a
disadvantage by the unforeseen event. The rst and the third
requisites here are lacking.
4. Usurious Transactions; Interests
ART 1175. Usurious transactions shall be governed by special
laws.
Security Bank and Trust Co. v. RTC of Makati
In a loan or forbearance of money, the interest due should be that
stipulated in writing, and in the absence thereof, the rate shall be 12%
per annum. Hence, only in the absence of a stipulation can the
court impose the 12% rate of interest.
Siga-an v. Villanueva, supra
Article 1956, which refers to monetary interest, speci cally mandates
that no interest shall be due unless it has been expressly
stipulated in writing. Thus, payment of monetary interest is
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allowed only if:
1) there was an express stipulation for the payment of interest;
and
2) the agreement for the payment of interest was reduced in
writing.
There are instances in which an interest may be imposed even in the
absence of express stipulation, verbal or written, regarding payment
of interest.
1) Article 2209 states that if the obligation consists in the
payment of a sum of money, and the debtor incurs delay, a
legal interest of 12% per annum may be imposed as
indemnity for damages if no stipulation on the payment of
interest was agreed upon.
2) Article 2212 provides that interest due shall earn legal
interest from the time it is judicially demanded, although
the obligation may be silent on this point.
All the same, the interest under these two instances may be imposed
only as a penalty or damages for breach of contractual
obligations. It cannot be charged as a compensation for the use or
forbearance of money. In other words, the two instances apply only
to compensatory interest and not to monetary interest. The case
at bar involves petitioner's claim for monetary interest.
Asiatrust Development Bank v. Tuble 2012
Assuming that the Real Estate Mortgage Contract subsists, we rule
that the dragnet clause therein does not justify the imposition
of an 18% annual interest on the redemption price.
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In addition to the 18% annual interest, the bank also claims a 12%
interest per annum on the consumption loan. A default must exist
before the bank can collect the compensatory legal interest of 12%
per annum. Here, the obligation of Tuble had already been settled by
paying the redemption price. Thus, Tuble is NOT in default.
Sps Bonrostro v. Sps Luna 2013
Article 1191 cannot be applied to sales of real property on
installment since they are governed by the Maceda Law.
The spouses Bonrostro erroneously assumed that their notice to pay
would excuse them from paying interest. Their claimed tender of
payment did not produce any e ect whatsoever because it was not
accompanied by actual payment or followed by consignation. Hence, it
did not suspend the running of interest. The spouses Bonrostro
are therefore liable for interest on the subject installments from the
date of default until full payment.
a. Principal Remedies — from the land, petitioners lost the right to demand that the land be sold
to them. We hold that they did not and that the appellate court erred
1. Speci c Performance, Substitute Performance;
in holding otherwise.
Equivalent Performance (1165; 1167; 1168; 1170)
Private respondent fails to distinguish between a condition imposed
2. Rescission (Resolution) (1191)
on the perfection of the contract and a condition imposed on
b. Subsidiary Remedies — the performance of an obligation. Failure to comply with the rst
1. Acción subrogatoria; condition results in the failure of a contract, while failure to comply
with the second condition only gives the other party the option
2. Accion pauliana.
either to refuse to proceed with the sale or to waive the condition.
c. Ancillary Remedies (replevin, attachment, garnishment,
In any case, private respondent’s action for rescission is not
etc.)
warranted. She is not the injured party. The right of resolution
Accion Subrogatoria of a party to an obligation under Article 1191 is predicated on
a breach of faith by the other party that violates the reciprocity
ART 1177. The creditors, after having pursued the property in
between them. It is private respondent who has failed in her
possession of the debtor to satisfy their claims, may exercise all
obligation under the contract.
the rights and bring all the actions of the latter for the same
purpose, save those which are inherent in his person; they may
also impugn the acts which the debtor may have done to
defraud them. Deiparine, Jr. v. CA

5. Presumptions
ART 1176. The receipt of the principal by the creditor without
reservation with respect to the interest, shall give rise to the
presumption that said interest has been paid.
The receipt of a later installment of a debt without reservation
as to prior installments, shall likewise raise the presumption
that such installments have been paid.
6. Remedies of Creditors for Breach of Obligations
1) Extrajudicial Remedies;
2) Judicial Remedies
Accion Pauliana — see Rescissible Contracts
Molina v. CA
The contract of sale remains but the payment of the price is a
resolutory condition, and the remedy of the seller is to exact
ful llment or, in case of a substantial breach, to rescind the
contract under Article 1191.
Lim v. CA
Whether as a result of private respondent’s failure to eject the squatters
Deiparine did not deal with the Carungays in good faith. His breach
of this duty constituted a substantial violation of the contract
correctible by judicial rescission. The violation of reciprocity
between Deiparine and the Carungay spouses, to wit, the breach
caused by Deiparine's failure to follow the stipulated plans and
speci cations, has given the Carungay spouses the right to rescind
or cancel the contract. When the structure failed, the Carungay
spouses were left with no other recourse than to rescind their
contract.
Sps Velarde v. CA

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A substantial breach of a reciprocal obligation, like failure to
pay the price in the manner prescribed by the contract, entitles
the injured party to rescind the obligation. Rescission abrogates
the contract from its inception and requires a mutual restitution
of bene ts received.
Campos Assets Corp. v. Club X.O. Company
Jurisprudence supports the view that when parties to a contract
expressly reserve an option to terminate or rescind a contract upon
the violation of a resolutory condition, notice of resolution must
be given to the other party when such right is exercised.
PNCC v. Mars Construction Enterprises, Inc.
Unilateral rescission of a contract is subject to judicial
determination. Contractual stipulations should be interpreted
together. Ambiguous ones should be construed to conform to
the sense that would result when all the provisions are
comprehended jointly. Moreover, doubts should be settled in
favor of the greatest reciprocity of interests.
By saying that the quantity speci ed in the letter was its last order,
petitioner unilaterally amended its Contract with the respondent.
When the herein petitioner resolved or rescinded the Agreement
without previous court action, it proceeded at its own risk. Only the
nal judgment of a court will conclusively and nally settle whether
such recourse was correct in law.
DBP v. CA
Reviewer
Rescission of a contract will not be permitted for a slight or
casual breach, but only such substantial and fundamental
breach as would defeat the very object of the parties in making
the agreement. Private respondents made regular payments to
petitioner DBP. Their fault consisted only of their failure to pay the
installments on the dates stipulated in the contract, for which they
were charged additional interests and penalty charges.
Central Bank v. Bichara
The law speaks of the right of the "injured party" to choose between
rescission or ful llment of the obligation, with the payment of
damages in either case.
Heirs of the late Justice J.B.L. Reyes v. CA
The crux of the case is whether there was a need for judicial rescission
of the contract of lease before respondent MMB, Inc. may be compelled
to move out of the leased premises. We rule that there is no need for a
judicial rescission of the lease contract.
Sps Pangilinan v. CA
Article 1592, requiring demand by suit or by notarial act in case the
vendor of realty wants to rescind, does not apply to a contract to sell
but only to contract of sale.
The applicable provision of law in instant case is Article 1191.
There is nothing in this law which prohibits the parties from
entering into an agreement that a violation of the terms of the
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contract would cause its cancellation even without court
intervention.
Goldenrod, Inc. v. CA
In the absence of a specific stipulation, may the seller of real estate keep
the earnest money to answer for damages in the event the sale fails due
to the fault of the prospective buyer?
By virtue of the extrajudicial rescission of the contract to sell by
petitioner without opposition from private respondents who, in
turn, sold the property to other persons, private respondent had the
obligation to return the earnest money plus legal interest from the
date it received notice of rescission from petitioner up to the date of
the return or payment.
3 Kinds
Pure and Conditional
Pure obligation is one which is not subject to any condition and no
speci c date is mentioned for its ful llment and is, therefore,
immediately demandable. Obligation immediately demandable when
it is:
1. Pure (Art 1179[1]);
2. Subject to a resolutory condition (Art 1179[2]); or
3. Subject to a resolutory period (Art 1193[2]).
Conditional obligations
ART 1181. In conditional obligations, the acquisition of rights,
as well as the extinguishment or loss of those already acquired,
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shall depend upon the happening of the event which

Negative Consists in the omission of an act ART 1182. When the ful llment of the condition depends
constitutes the condition.
upon the sole will of the debtor, the conditional obligation
A condition is a future and uncertain event, upon the happening of There are several conditions and all
Conjunctive shall be VOID. If it depends upon chance or upon the will of
must be ful lled
which, the e ectivity or extinguishment of an obligation (or rights) a third person, the obligation shall take e ect in conformity
Number
subject to it depends. There are several conditions and at with the provisions of this Code.
Disjunctive
a) Classi cation of Conditions least one must be ful lled 1. Potestative — Suspensive in nature and which depends upon
the sole will of one of the contracting parties.
Its happening gives rise to the Divisible Susceptible of partial performance
Suspensive 2. Casual — If the suspensive condition depends upon chance
obligation Divisibility
Not susceptible of partial or upon the will of a third person, the obligation subject to it
Effect Indivisible
Its happening extinguishes the performance is VALID.
Resolutory
obligation 3. Mixed — VALID if the suspensive condition depends partly
b) Kinds of conditional obligations
upon chance and partly upon the will of a third person.
Express Is clearly stated 1) Suspensive and resolutory
Form 3) Positive and negative conditions
Implied Merely inferred Suspensive Resolutory ART 1184. The condition that some event happen at a
(precedent or antecedent) (subsequent) determinate time shall extinguish the obligation as soon as
Capable of ful llment, legally and
Possible
physically Its ful llment will give rise to an Its ful llment will extinguish an a) the time expires or
Possibility obligation obligation already existing.
Not capable of ful llment, legally and b) if it has become indubitable that the event will not
Impossible
physically If it does not take place, the tie If it does not take place, tie of take place.
of law does not appear law is consolidated ART 1185. The condition that some event will not happen at
Depends upon the will of one of the
Potestative a determinate time shall render the obligation e ective from
contracting parties Acquisition of rights - Until it Loss of rights already acquired -
takes place, existence of Its e ect ow, but over it, hovers a) the moment the time indicated has elapsed, or
Cause/ Depends upon chance or upon the
Casual obligation a mere hope the possibility of termination. b) if it has become evident that the event cannot occur.
Origin will of a third person
Demandability of the obligation If no time has been xed, the condition shall be deemed
Depends partly upon chance and ful lled at such time as may have probably been contemplated,
Mixed is suspended until its happening
partly upon the will of a 3rd person bearing in mind the nature of the obligation.
2) Potestative, casual and mixed
Positive Consists in the performance of an act c) Constructive ful llment
Mode

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ART 1186. The condition shall be deemed ful lled when the
obligor voluntarily prevents its ful llment.
This provision refers to the constructive ful llment of a suspensive
condition, whose application calls for two requisites, namely:
a) the intent of the obligor to prevent the ful llment of the
condition, AND
b) the ACTUAL prevention of the ful llment.
Mere intention of the debtor to prevent the happening of the
condition, or to place ine ective obstacles to its compliance, without
actually preventing the ful llment, is insu cient.
d) Ful llment of obligations
ART 1187. The e ects of a conditional obligation to give,
once the condition has been ful lled, shall retroact to the
day of the constitution of the obligation. Nevertheless, when
the obligation imposes reciprocal prestations upon the
parties, the fruits and interests during the pendency of the
condition shall be deemed to have been mutually
compensated. If the obligation is unilateral, the debtor shall
appropriate the fruits and interests received, unless from the
nature and circumstances of the obligation it should be
inferred that the intention of the person constituting the same
was di erent.
In obligations to do and not to do, the courts shall
determine, in each case, the retroactive e ect of the condition
that has been complied with.
e) Preservation of Rights
Reviewer
ART 1188. The creditor may, before the ful llment of the
condition, bring the appropriate actions for the preservation
of his right.
The debtor may recover what during the same time he has
paid by mistake in case of a suspensive condition.
f) Rules in case of Loss, Deterioration, or Improvement
⭐ART 1189. When the conditions have been imposed with
the intention of suspending the e cacy of an obligation to
give, the following rules shall be observed in case of the
improvement, loss or deterioration of the thing during the
pendency of the condition:
1) If the thing is lost without the fault of the debtor, the
obligation shall be extinguished;
2) If the thing is lost through the fault of the debtor, he
shall be obliged to pay damages;
It is understood that the thing is lost when
a) it perishes, or
b) goes out of commerce, or
c) disappears in such a way that its existence is unknown
or it cannot be recovered;
3) When the thing deteriorates without the fault of the
debtor, the impairment is to be borne by the creditor;
4) If it deteriorates through the fault of the debtor, the
creditor may choose between the rescission of the
obligation and its ful llment, with indemnity for
damages in either case;
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5) If the thing is improved by its nature, or by time, the
improvement shall inure to the bene t of the creditor;
6) If it is improved at the expense of the debtor, he shall
have no other right than that granted to the
usufructuary
Requisites for Art 1189 to apply
1. Real obligation;
2. Object is speci c or determinate;
3. Obligation subject to suspensive condition;
4. Condition is ful lled; and
5. There is loss, deterioration, or improvement of the thing
during the pendency of the happening on one condition.
Kinds of loss
1. Physical — when a thing perishes, i.e. house is burned; or
2. Legal — a thing goes out of commerce or when it heretofore
legal becomes illegal; or
3. Civil — it disappears in such a way that its existence is
unknown; or even if known, it cannot be recovered, whether
as a matter of fact or of law (e.g. a property is lost through
prescription). (Art 1262).
Deterioration occurs when the value of a thing is reduced or impaired
with or without the fault of the debtor.
Improvement occurs when the value of a thing is increased or
enhanced by nature or time, or at the expense of the debtor or creditor
(Art 1187).
Lost without Obligation is extinguished; debtor
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debtor’s fault not liable. the remedy of the party entitled to restitution is
3) GR: Previous demand required before the obligor can be
against the other (not the third person).
considered in default.
with debtor’s Creditor entitled to demand iv. If subject to suspensive condition, retroactive only
fault damages (Art 1170) Remedy of Rescission
when the nature and circumstances in unilateral
obligation infer it to be so. 1. To put an end to the contract in all its parts as though it never
without
Creditor su ers the impairment. were.
debtor’s fault v. If the condition is not ful lled, the rights acquired by
a party become vested. 2. When a party demands rescission he, in e ect, treats the
Deteriorates
Creditor may choose between non-ful llment by the other party of his obligation as a
with debtor’s b) In obligations to do or not to do — Courts shall determine the
rescission or ful llment of the resolutory condition.
dault retroactive e ect of the ful llment of the condition, may it be
obligation, with damages.
resolutory or suspensive. Effects of Rescission
By nature or Shall inure to the bene t of the h) Rescission in Reciprocal Obligations 1) Contract abrogated from its inception;
time creditor.
2) Mutual restitution of benefits received by each party required;
ART 1191. The power to rescind obligations is implied in
Debtor will have the right granted reciprocal ones, in case one of the obligors should not comply Court may grant guilty party term for performance
Improves
to a usufructuary with respect to with what is incumbent upon him.
At debtor’s 1. Applies only where the guilty party is willing to comply with
improvements made on the thing
expense The injured party may choose between the ful llment and his obligation but needs time to do so and not where he refuses
held in usufruct. (see Arts 562,
the rescission of the obligation, with the payment of to perform.
579, 580).
damages in either case. He may also seek rescission, even after 2. Breach must not be substantial and in bad faith, and there
g) Resolutory Conditions — Effect of fulfillment of resolutory he has chosen ful llment, if the latter should become should be just cause for grant of additional period.
condition impossible.
Damages recoverable
a) In obligations to give — Obligation is extinguished and both The court shall decree the rescission claimed, unless there be
1) In contract of sale, seller is entitled to repossession of the thing
parties are obliged to return to each other what they have just cause authorizing the xing of a period.
and its fruits should the same have been already delivered. If he
received under the obligation.
Choice of remedy in reciprocal obligations elects speci c performance, he is entitled to the price with
i. There is a return to status quo. Thus, the e ect is interest if it has not been paid.
1) Should there be breach of the obligation, the aggrieved party
retroactive.
may choose between an action for rescission or for speci c 2) In case of rescission due to non-delivery, purchaser is entitled
ii. Mutual restitution of the thing and its fruits absolute. performance, with damages. to interest on the amount he has paid.
iii. In case the thing to be returned is legally in possession 2) Breach is the obligor’s failure to comply with an existing 3) Where the conditional obligation is deemed not to have existed
of a third person acting in good faith (Art 1384[2]), obligation, not a failure of a condition to render binding the by reason of the non-ful llment of the suspensive condition,
obligation. the award of damages under Art 1191 is unwarranted.

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Rescission of contract without previous judicial decree
1) Where automatic rescission expressly stipulated — parties may
validly stipulate for automatic rescission should there be
violation of the terms of the contract. Hence, Art 1191
becomes inapplicable. Simply put, resolution of reciprocal
obligations may be made extrajudicially unless impugned in
court.
2) Where contract still executory — In the absence of a
stipulation, the right to rescind must be invoked judicially.
Procedure where extrajudicial rescission contested
1) With stipulation for automatic revocation — judicial
intervention is necessary to determine whether rescission was
proper.
2) Without stipulation for automatic revocation —
Notwithstanding absence thereof, a contracting party has the
power to extrajudicial rescind a contract, subject to judicial
inquiry from the other.
Rescission and Termination distinguished
Rescission Termination
Unmaking of a contract, or its
undoing from the beginning. End in time or existence; a close,
May be e ected mutually or cessation or conclusion
unilaterally
Agreement is deemed inexistent
Agreement deemed valid at its
and the parties are returned to
inception.
their status quo ante.
Reviewer for the 2022 Bar
Prior to termination, parties are Davies, Inc. v. CA
bound to the provisions of the
There is mutual restitution of The enumerated "basic terms and conditions" were prescriptions on
contract. Consequences may be
bene ts. how the obligation was to be performed and implemented. They were
anticipated and provided
far from being conditions imposed on the perfection of the contract.
therein.
Where both parties guilty of breach
1) First infractor known — Under this provision, the second Baluran v. Navarro
infractor is not liable for damages at all. Art 1192 does not
A resolutory condition is one which extinguishes rights and
really exculpate the second infractor from liability, as the
obligations already existing. The right of "material possession"
second infractor is actually punished for his breach by
granted in the agreement ends if and when any of the children of
mitigating the damages to be awarded to him from the
Obedencio would reside in the municipality and build his house on
previous breach of the other party. (Ong v. Bogñalbal)
the property. Inasmuch as the condition imposed is not dependent
2) First infractor cannot be determined — Contract shall be solely on the will of one of the parties to the contract — the spouses
deemed extinguished and both bear the damages sustained. Paraiso — but is partly dependent on the will of third persons —
Obedencio and any of her children — the same is VALID.
Rillo v. CA
The respondent court did not err when it did not apply Articles 1191
Central Philippine University v. CA
and 1592 on rescission to the case at bar. The contract between the
parties is not an absolute conveyance of real property but a contract When the obligation does not x a period but from its nature and
to sell. In a contract to sell real property on installments, the full circumstances it can be inferred that a period was intended, the
payment of the purchase price is a positive suspensive condition, the general rule provided in Art. 1197 applies.
failure of which is not considered a breach, casual or serious, but
This general rule however cannot be applied considering that more
simply an event which prevented the obligation of the vendor to
than a reasonable period of fty (50) years has already been allowed
convey title from acquiring any obligatory force.
petitioner to avail of the opportunity to comply with the condition
It was held in Luzon Brokerage Co., Inc. v. Maritime Building Co., even if it be burdensome, to make the donation in its favor forever
Inc. that there can be no rescission of an obligation that is still valid. But, unfortunately, it failed to do so.
non-existent, the suspensive condition not having happened.
F.F. Cruz & Co., Inc. v. HR Construction Corp. 2012
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The right of rescission is statutorily recognized in reciprocal
obligations. The right to rescind, however, may be waived,
expressly or impliedly.
HRCC had no right to rescind the Subcontract Agreement in the
guise of a work stoppage, the latter having waived such right. In view
of the provision of the Subcontract Agreement, HRCC is deemed to
have e ectively waived its right to e ect extrajudicial rescission of its
contract with FFCCI.
International Hotel Corporation
2013
v. Joaquin, Jr. & Suarez
To avoid unjust enrichment to a party from resulting out of a
substantially performed contract, the principle of quantum meruit
may be used to determine his compensation in the absence of a
written agreement for that purpose. The principle of quantum
meruit justi es the payment of the reasonable value of the services
rendered by him.
Wellex Group, Inc. v. U-Land Airlines Co., Ltd. 2015
At the lapse of the 40-day period, the parties failed to enter into a
share purchase agreement. This lapse is the rst circumstance
provided for in Article 1185 that gives rise to the obligation. The
parties were then obligated to return to each other all that they had
received in order to be freed from their respective undertakings.
U-Land correctly sought the principal relief of rescission or
resolution under Article 1191.
Reviewer for the 2022 Bar
Nolasco v. Cuerpo, et al. 2015
Here, it cannot be said that petitioners' failure to undertake their PEZA v. Pilhino Sales Corp 2016
obligation under paragraph 7 defeats the object of the parties in
Jurisprudence has long settled that the restoration of the contracting
entering into the subject contract, considering that the same
parties to their original state is the very essence of rescission. Mutual
paragraph provides respondents contractual recourse in the
restitution under Article 1191 is, however, no license for the
event of petitioners' non-performance of the aforesaid obligation,
negation of contractually stipulated liquidated damages.
that is, to cause such transfer themselves in behalf and at the expense
of petitioners.
DBP v. Sta. Ines Melale Forest Products 2017
Fong v. Dueñas 2015 A condition shall be deemed ful lled when the obligor
voluntarily prevents its ful llment and a debtor loses the right
The ultimate e ect of rescission is to restore the parties to their
to make use of the period when a condition is violated, making
original status before they entered into a contract. Thus, Fong’s
the obligation immediately demandable as per Art 1186.
prayer for the return of his contribution did not automatically
The failure to execute the share purchase agreement was brought
convert the action to a complaint for a sum of money. The mutual
about by NDC's delay in reviewing the nancial accounts submitted
restitution is only a necessary consequence of their agreement’s
by Galleon's stockholders. Considering NDC's delay, the execution
rescission.
of the share purchase agreement should be considered ful lled with
The Court notes that Fong also breached his obligation in the JVA
NDC as the new owner of 100% of Galleon's shares of stocks.
with the diminution of his capital share to P5 Million. As both
parties failed to comply with their respective reciprocal
With a Period
obligations, we apply Article 1192. Thus, no damages shall be
awarded to any party.
A period is a future and certain event upon the arrival of which
the obligation subject to it either arises or is extinguished.
2016 When the debtor binds himself to pay when his means permit him
Osmeña III v. PSALM
to do so, the obligation shall be deemed to be one with a period,
SPC can never legally and validly invoke its Right to Top in view of subject to the provisions of Art 1197. (Art 1180)
its nullity. The condition, therefore, is deemed complied with by
Period and condition distinguished
operation of law, and the obligation to execute the purchase
contracts in favor of TPVI, due and demandable.
As to Period Condition
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the parties. Once xed by the courts, the period cannot be

Certain to happen sooner 4) When the debtor violates any undertaking, in
changed by them.
or later at a date known consideration of which the creditor agreed to the
Fulfillment Uncertain
beforehand, or at an Action to fix duration of period period;
indeterminate time 1) Separate action for that express purpose — The only action that 5) When the debtor attempts to abscond.
can be maintained is to ask the court rst to determine the
May refer to past
term within which the obligor must comply with his Radiowealth Finance Company v. Del Rosario
Time Refers only to the future events unknown to
obligation for the reason that ful llment of the obligation
the parties The Note expressly stipulated that the debt should be amortized
itself cannot be demanded until after the court has xed the
monthly in installments for twelve consecutive months. While the
Merely xes the time for period for its compliance and such has arrived.
Influence on Causes an obligation speci c date on which each installment would be due was left blank,
the e caciousness of the 2) Where separate action would be a mere formality — Action
the obligation to arise or to cease. the Note clearly provided that each installment should be payable
obligation. brought for that express purpose separate from action to each month.
enforce payment; but may not be adhered to when a prior and
Empowers the court to x Invalidates the
When left to separate action would be a mere formality and would serve no
the duration thereof (Art obligation (Art Alternative and Facultative
debtor’s will other purpose than to delay.
1197[2]). 1182).
When debtor loses the right to make use of the period ART 1199. A person alternatively bound by di erent
As to prestations shall completely perform one of them.
E ects do not retroact, Has retroactive ART 1198. The debtor shall lose every right to make use of the
retroactivity
unless agreed. e ect. period: The creditor cannot be compelled to receive part of one and
of effects
part of the other undertaking.
1) When after the obligation has been contracted, he
ART 1194. In case of loss, deterioration or improvement of the becomes insolvent, unless he gives a guaranty or An alternative obligation is one wherein various prestations are due
thing before the arrival of the day certain, the rules in Article security for the debt; but the performance of one of them is su ciently determined by the
1189 shall be observed. choice which, as a general rule, belongs to the debtor.
2) When he does not furnish to the creditor the
When Court May Fix Period guaranties or securities which he has promised; ART 1200. The right of choice belongs to the debtor, unless
ART 1197. If the obligation does not x a period, but from its it has been expressly granted to the creditor.
3) When by his own acts he has impaired said
nature and the circumstances it can be inferred that a period guaranties or securities after their establishment, and Limitations to the right of choice rule given to the debtor
was intended, the courts may x the duration thereof. when through a fortuitous event they disappear, 1. Prestations that are
The courts shall also x the duration of the period when it unless he immediately gives new ones equally
satisfactory; a) Impossible,
depends upon the will of the debtor.
b) unlawful, or
In every case, the courts shall determine such period as may
under the circumstances have been probably contemplated by

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c) those which could not have been the object of the 1. Some of the objects — Debtor is not liable, even through his 1. Debtor cannot be held in default, notwithstanding the lapse of
obligation, are VOID. fault, since he has the right of choice and the obligation can maturity. Debtor does not yet know what to deliver. Creditor
still be performed. This is an exception to Art 1170, regarding is considered to have waived the period through his inaction.
2. When only one prestation is practicable. The obligation thus
liability for damages arising from negligence.
becomes simple. 2. If the debtor wants to relieve himself, he may petition the
2. All of the objects — Creditor shall have the right to indemnity court to compel the creditor to accept, in the alternative, at the
3. Cannot choose parts of di erent prestations.
for damages. reditor’s option, with resultant damages if any.
Effect of Notice of Choice
Effect of fortuitous event
1. Effect of notice — Until the choice is made and communicated, Arco Pulp v. Lim 2014
1. If ALL became impossible due to caso fortuito, obligation
the obligation remains alternative.
extinguished. When Arco Pulp and Paper tendered a check to respondent in partial
a) Obligation then becomes simple. payment for the scrap papers, they exercised their option to pay the
2. If one or more becomes impossible due to caso fortuito, and
b) Such choice is irrevocable and cannot be renounced. price. The memorandum declared in clear terms that the delivery of
the last also then becomes impossible due to debtor’s fault, Art
Creditor not required to concur with it. Arco Pulp and Paper’s nished products would be to a third person,
1204 applies: debtor is liable for damages equivalent to the
thereby extinguishing the option to deliver the nished products of
c) It produces legal e ects. value of the last prestation.
equivalent value to respondent.
2. Proof and form of notice — Burden of proof incumbent upon ART 1205. When the choice has been expressly given to the
him who made the choice. May be written, or oral; expressed, creditor, the obligation shall cease to be alternative from the Facultative Obligations
or implied. day when the selection has been communicated to the debtor. ART 1206. When only one prestation has been agreed upon,
3. Requisites for The Making of the Choice: Until then the responsibility of the debtor shall be governed but the obligor may render another in substitution, the
by the following rules: obligation is called facultative.
a) Made properly so that the creditor and his agent will
actually know;
Only one becomes As to Alternative Facultative
All become impossible
b) With full knowledge that a selection is indeed being impossible
made. Only the principal
There are various
Fortuitous Any of the remaining prestation constitutes the
c) Voluntarily and freely; Obligation extinguished prestations, all of which
Event item Contents obligation, the accessory
constitute parts of the
d) In due time, that is, before or upon maturity; of the only a means to facilitate
obligation. Creditor
Any of the item + obligation payment. Creditor may
e) To all the proper persons, i.e. in case of joint creditors; Debtor’s Creditor demands the must demand all leaving
damages; or Price of lost only demand the
Fault price of any + damages the debtor to choose.
f) Without conditions unless agreed to by the creditor; item + damages principal prestation.
g) That it may be waived, expressly or impliedly.
Effect if creditor delays in making the choice Nullity Nullity of one prestation Nullity of the principal
Effects of loss or becoming impossible of objects of obligation

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does not invalidate the invalidates the obligation, 2. Presumption — When there is no expressed provision in the ART 1212. Each one of the solidary creditors may do whatever
obligation. and the creditor cannot contract, joint obligation is presumed. may be useful to the others, but not anything which may be
demand the substitute prejudicial to the latter.
3. Effects — Art 1207, 1208
even when it is valid.
a) Demand by one creditor upon one debtor, produces the Bene cial Acts Prejudicial Acts
May be given to the Only the debtor can e ects of default only with respect to the creditor who
Choice
creditor choose the substitute. demanded and the debtor on whom the demand was Interrupt The acts of extinguishment, i.e. remission,
made, but not with respect to the others. prescription; novation, compensation and merger or
Only the impossibility of
b) The interruption of prescription by the judicial demand constitute debtor confusion, which are prejudicial to the
all prestations due Impossibility of the
Effect of of one creditor upon a debtor, does not bene t the other in default; bring co-creditors, will be valid so as to extinguish
without fault to the principal is su cient to
loss creditors nor interrupt the prescription as to the other suit so that the the claim against the debtors, but not with
debtor extinguishes the extinguish the obligation.
debtors. On the same principle, a partial payment or obligation may respect to the co-creditors whose rights subsist
obligation
acknowledgment made by one of several joint debtors produce interest and can be enforced against the creditor who
Effect of loss does not stop the running of the statute of limitations as performed the act alone.
to the others.
1) Before substitution — If the principal is lost due to caso Assignment of rights not allowed
fortuito, the obligation is extinguished; otherwise, the debtor is c) In the joint divisible obligation, the defense of res judicata
ART 1213. A solidary creditor cannot assign his rights without
liable for damages. The loss of the intended substitute with or is not extended from one debtor to another.
the consent of the others.
without the fault of the debtor does not render him liable.
B. Solidary Obligations mancomunada solidaria, joint and several,
GR: Solidary creditor cannot assign his rights.
2) After substitution — If the principal is lost, the debtor is not in solidum
liable whatever may be the cause, because it is no longer due. If EXC: Allowed if all the others consent.
1. Concept — One where each of the debtors is bound to render,
the substitute is lost, liability is dependent on the existence of Demand by Several Creditors — If all or several creditors demand
and/or each one of the creditors has a right to demand entire
fault on the part of the debtor. payment separately, the debtor should pay to the one who rst noti ed
compliance with the prestation (Art 1207).
him. If they demand at the same time or collectively, the debtor
Joint and Solidary 2. Effects
preserves his right to choose and may pay anyone of those demanding
ART 1216. The creditor may proceed against any one of the payment.
A. Joint Obligations mancomunada simple, pro rata
solidary debtors or some or all of them simultaneously. The
1. Concept — One where the whole obligation is to be paid or ART 1215. Novation, compensation, confusion or remission
demand made against one of them shall not be an obstacle to
ful lled proportionately by the di erent debtors and/or is to of the debt, made by any of the solidary creditors or with any
those which may subsequently be directed against the others,
be demanded proportionately by the di erent creditors. (Art of the solidary debtors, shall extinguish the obligation,
so long as the debt has not been fully collected.
1208) without prejudice to the provisions of article 1219.
Prejudicial Acts Prohibited

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The creditor who may have executed any of these acts, as well b) Reimbursement is not automatic and shall only be
as he who collects the debt, shall be liable to the others for the recovered in so far as payment exceeded his share of
share in the obligation corresponding to them. the obligation.
Liability of solidary creditor in case of novation, compensation, confusion, 3) Among the solidary creditors — The receiving creditor is
or remission — Creditor who executed any of these acts should be liable jointly liable to the others for their corresponding shares (Art
to the others for their corresponding shares. (Art 1212). 1208).
Effect of extension of time given by creditor to a solidary debtor Effect of Loss or Impossibility
1. Does not amount to novation that will discharge the other 1. If without fault — no liability.
solidary debtors. The latter shall be liable for the whole debt
2. If with fault — there is liability (also for damages and interest).
less the share of the debtor granted the extension (Art 1211).
Only guilty debtor should be liable, not shared with
2. Upon the expiration of the term, the creditor can demand co-debtors.
payment of the unpaid share from any of the solidary debtors.
3. Due to caso fortuito AFTER default — there will be liability
Effects of payment by a solidary debtor because of the default.
1) Between the solidary debtor and creditor(s) — Defenses available to a solidary debtor against the creditor
Extinguishes the obligation. Creditor is given the right to
a) Types
choose which o er to accept should there be more than one
o er to pay. 1) Those derived from the nature of the obligation —
C. Joint Indivisible Obligations
Constitutes TOTAL defense:
2) Among the solidary debtors — Does not create a real case of
subrogation. Merely entitles the payer to claim a. Lack of consideration or cause;
reimbursement. b. Absolute simulation;
a) The other debtors do not become by virtue of such c. Illegal consideration;
payment solidary debtors of the debtors of the
d. Extinguishment of the obligation
debtor-payer. Their liability is not based on the
e. Non-ful llment of the suspensive condition;
original obligation which has been extinguished, but
upon the payment made by the co-debtor which f. Statute of Frauds;
creates a joint obligation of reimbursement on the
g. When ALL the debtors were incapacitated to give
part of the others (Art 1208). In case of insolvency,
the others assume the share of the insolvent one pro consent;
rata (pars 2, 3).
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for the 2022 Bar
h. When there are VICES OF CONSENT on the part
of ALL the debtors
2) Personal defenses — COMPLETE defense:
a. Vitiated consent;
b. Incapacity to give consent;
3) Defenses pertaining to his share — PARTIAL defense:
a. Non-ful llment of condition imposed regarding his
share;
b. Non-arrival of term
4) Those personally belonging to the other co-debtors —
Partial defense. Debtor-defendant may also set up defenses
which are personal to his co-debtors.
b) E ects — Exempts debtor-defendant from payment of the
portions of the obligation corresponding to the other debtors
who have such personal defenses.
1. Concept — Obligation is joint because the parties are merely
proportionately liable. It is indivisible because the object is not
physically divisible into parts.
2. Effects
ART 1209. If the division is impossible, the right of the
creditors may be prejudiced only by their collective acts, and
the debt can be enforced only by proceeding against all the
debtors. If one of the latter should be insolvent, the others
shall not be liable for his share.
3. Liability for damages in case of breach
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because in indivisible obligations, partial performance is equivalent to

a. Obligation transformed into one for damages — The
creditor cannot ask for speci c performance or rescission
because there is no cause of action against the debtors who
are willing to ful ll their promises.
b. Contribution of innocent debtors limited to their respective
shares. — Obligation becomes divisible.
Lafarge Cement Phils. v. Continental Cement Corp., et al.
Obligations arising from tort are, by their nature, always solidary.
International Finance Corporation v.
Imperial Textile Mills, Inc.
While referring to ITM as a guarantor, the Agreement speci cally
stated that the corporation was "jointly and severally" liable. To put
emphasis on the nature of that liability, the Contract further stated
that ITM was a primary obligor, not a mere surety. Those
stipulations meant only one thing: that at bottom, and to all legal
intents and purposes, it was a surety.
Divisibility of things
non-performance. Exc:
Juridically, a thing is considered indivisible when, if divided by
a) where the obligation has been substantially performed in good
parts, its value is diminished disproportionately. A thing is divisible
faith, the debtor may recover as if there had been complete
when each one of the parts into which it is divided forms a
performance, minus the damages su ered by the creditor (Art
homogeneous and analogous object to the other parts as well as to
1234); and
the thing itself.
b) when the creditor accepts performance, knowing its
Factors which determine divisibility
incompleteness, and without protest, the obligation is deemed
1) Will or intention of the parties, expressed or implied; fully performed (Art 1235).
2) Objective or purpose of the stipulated prestation;
Nazareno v. CA
3) Nature of the thing;
4) Provisions of law a ecting prestation. An obligation is indivisible when it cannot be validly performed in
parts, whatever may be the nature of the thing which is the object
Distinguished from solidary obligations thereof. The indivisibility refers to the prestation and not to
the object thereof.
Indivisibility Solidarity
In the present case, the Deed of Sale supposedly conveyed the six lots
Refers to prestations Refers to the juridical or legal tie to Natividad. The obligation is clearly indivisible because the
performance of the contract cannot be done in parts, otherwise the
Only the debtor guilty of breach All of the debtors are liable for value of what is transferred is diminished. Petitioners are therefore
is liable for damages, thereby the breach committed by a mistaken in basing the indivisibility of a contract on the number of
terminating the agency co-debtor (Art 1221) obligors.

Sps. Ibañez v. James 2017 Can exist although there is only There must be at least two
one debtor and creditor debtors and creditors.
Solidary obligations cannot be inferred lightly. They must be Sps Lam v. Kodak Philippines 2016
positively and clearly expressed. Others are not liable in case of Others are proportionately liable
The intention of the parties to bind themselves to an indivisible
In this case, given that solidarity could not be inferred from the insolvency of one debtor.
obligation can be discerned through their direct acts in relation to the
agreement, the presumption under the law applies—the obligation is package deal. There was only one agreement covering all three (3)
Effects of partial performance — Debtor who fails to fully perform the
joint. work agreed upon, but abandons the same after performing a part, units of the Minilab Equipment and their accessories.
cannot recover on quantum meruit for the work already nished, Through the speci ed terms and conditions, the tenor of the Letter
Divisible and Indivisible

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Agreement indicated an intention for a single transaction. This NB: Obligations with penal clauses strictly construed. by express stipulation.
intent must prevail even though the articles involved are physically
separable and capable of being paid for and delivered individually. As Obligations with penal clause Conditional Obligations Creditor may demand both Creditor can never demand both
per the last paragraph of Art 1225 — even though the object or principal and penalty. prestations.
service may be physically divisible, an obligation is indivisible There is already an existing There is no obligation before the
if so provided by law or intended by the parties. obligation (the principal) from happening of a suspensive
the very beginning. condition. Obligations with penal clause Guaranty

With Penal Clause It is the accessory obligation The principal obligation is Both intended to insure performance of the principal obligation.
which is dependent upon dependent upon an uncertain
1. An obligation with a penal clause is one which contains an Both accessory and subsidiary obligations.
non-performance of the event.
accessory undertaking to pay a previously stipulated indemnity
principal. Obligation to pay the penalty is Object of the principal debtor
in case of breach of the principal prestation intended primarily
to induce its ful llment. di erent from the principal. and guarantor the same.

2. A penal clause is an accessory undertaking attached to an Obligations with penal clause Alternative Obligations Principal and penalty can be Principal debtor cannot be the
obligation to assume greater liability on the part of the obligor assumed by the same person. guarantor of the same obligation
in case of breach of the obligation. There is only one prestation. Two or more obligations due,
Only when it is not performed performance of either is Penalty is extinguished by the Subsists even when the principal
Principal vs. Accessory Obligation nullity of the principal obligation is voidable or
shall the penalty be enforceable. su cient.
1. Principal obligation is one which can stand by itself and does obligation, except when the unenforceable or is a natural
not depend for its validity and existence upon another Impossibility of the principal Impossibility of one of the penal clause is assumed by third one.
obligation. extinguishes the penalty. obligations, not due to debtor, persons.
still leaves the other subsisting.
2. Accessory obligation is one which is attached to a principal A. Effects of Penal Clause
obligation and, therefore, cannot stand alone. Debtor cannot choose to pay the Debtor can choose which
1. Substitute for indemnity for damages and payment of
Penalty generally resolves question of damages penalty to relieve himself of the prestation to ful ll.
interest;
principal, unless that right is
1. When the purpose is reparation or compensation — penalty an 2. Not exempt debtor from performance - Art 1227
expressly granted to him.
anticipated valuation of the damages which may be su ered
should there be breach. EXC: Only when the right has been expressly reserved
for the debtor.
2. When the purpose is punishment — damages may be recovered Obligations with penal clause Facultative Obligations
in addition to the penalty. 3. Creditor cannot demand both performance and penalty at
Payment of the penalty in lieu of Power of the debtor to make the the same time - Art 1227
the principal can be made only substitution is absolute.

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a) Where there is performance — Generally, penal clause
is subsidiary and not joint.
b) Where there is no performance — Creditor may ask
for either the penalty or speci c performance.
4. Creditor cannot collect other damages in addition to penalty
- Art 1226
EXC: Damages besides penalty
1. When there is an express provision;
2. When the debtor refuses to pay the penalty; and
3. When the debtor is guilty of fraud in the
non-ful llment of the obligation.
When penalty may be reduced by the courts
1) When there is partial or irregular performance; or
2) When the penalty agreed upon is iniquitous or unconscionable -
NOT VOID, but subject merely to equitable reduction (Art
2227).
Nullity of Principal Obligation or Penal Clause
a) E ects - Art 1230
Generally, nullity of the principal nulli es the penalty. Exc:
1) When the penalty is undertaken by a third person
precisely for an obligation which is unenforceable,
voidable, or natural, in which case it assumes the form of a
guaranty valid under Art 2052;
2) When the nullity of the principal obligation itself gives
rise to liability of the debtor for damages, which may be
due to the fault of the debtor who acted in bad faith. (Arts
10, 19, 20, 21).
Reviewer for the 2022 Bar
b) Rationale — Principal obligation can stand alone, and the Courts may equitably reduce a stipulated penalty in the contract in
void penal clause can just be disregarded. two instances:
1) If the principal obligation has been partly or irregularly
SSS v. Moonwalk Development and Housing Corporation complied; and
A penalty is demandable in case of non performance or late 2) even if there has been no compliance if the penalty is
performance of the main obligation. In other words in order that the iniquitous or unconscionable in accordance with Article
penalty may arise there must be a breach of the obligation either by 1229.
total or partial non ful llment or there is non ful llment in point of
Here, the project was already 94.53% complete and Filinvest did agree
time which is called mora or delay.
to extend the period for completion of the project, which extensions
Filinvest included in computing the amount of the penalty, the
reduction thereof is clearly warranted. There has been substantial
Ligutan v. CA compliance in good faith on the part of Pecorp which renders
A penalty stipulation is not necessarily preclusive of interest, if there unconscionable the application of the full force of the penalty.
is an agreement to that e ect, the two being distinct concepts which
may separately be demanded.
Louh, Jr., et al. v. BPI 2017
Courts may reduce the interest rate as reason and equity demand.
Palmares v. CA The same is true with respect to the penalty charge.
The penalty charge of 3% per month and attorney’s fees equivalent
to 25% of the total amount due are highly inequitable and 4 Extinguishment
unreasonable.
ART 1231. Obligations are extinguished:
It must be remembered that from the principal loan of P30K, the
amount of P16,300.00 had already been paid even before the ling of 1) By payment or performance;
the present case. Article 1229 provides that the court shall equitably
2) By the loss of the thing due;
reduce the penalty when the principal obligation has been partly or
irregularly complied with by the debtor. 3) By the condonation or remission of the debt;
4) By the confusion or merger of the rights of
creditor and debtor;
Filinvest Land, Inc. v. CA
5) By compensation;
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6) By novation.
Payment or Performance
Elements of payment.
1. Persons, who may pay and to whom payment may be made;
2. Thing or object in which payment must consist;
3. The cause thereof;
4. The mode or form thereof;
5. The place and time in which it must be made;
6. The imputation of expenses occasioned by it; and
7. The special parts which may modify the same and the e ects
they generally produce.
Burden of proving payment
1. Devolves upon the debtor.
2. When debtor has introduced evidence that the obligation has
been extinguished, burden then shifts to the creditor.
3. A receipt of payment is deemed to be the best evidence of
payment. A voucher is not proof of payment.
Person to whom payment shall be made (Art 1240)
1. Creditor or obligee — at the time payment is to be made,
not at the constitution of the obligation.
2. Successor-in-interest;
3. Any authorized person — either by the creditor or by law, i.e.
guardian, executor or administrator of the estate of a deceased,
and assignee or liquidator of a partnership or corporation.
Reviewer
Effects of payment to an incapacitated person (Art 1241 par 1)
1. INVALID, unless such person
a) kept the thing paid or delivered, or
b) was bene ted by the payment.
2. In the absence of said bene t, debtor may be asked to pay
again by the creditor’s guardian, or by the incapacitated person
himslef when he recovers his capacity.
3. Proof of such bene t is incumbent upon the debtor who
paid.
4. If payment is impossible to be made to a legal representative,
debtor may relieve himself through consignation (Art 1256
par 1).
Effect of payment to a third person (Art 1241 par 2)
1. INVALID, except insofar as it has redounded to the bene t of
the creditor.
2. Immaterial if debtor acted in good faith and by mistake, or
through error induced by fraud of a third person if the
creditor is without fault or negligence.
3. Proof of bene t to the creditor must be duly established.
4. Absence of such proof, the payment thereof in error and in
good faith will not deprive the creditor from demanding
payment.
When benefit to creditor need not be proved by debtor
(Art 1241 par 3)
1. Subrogation of the payer in the creditor's rights;
2. Rati cation by the creditor;
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3. Estoppel on the part of the creditor.
➔ The debtor who, before having knowledge of the assignment
of a credit to a third person, pays the original creditor, shall be
released from the obligation (Art 1626).
Payment to the third person in possession of credit (Art 1242)
1. Possession of credit itself, and not a mere instrument thereof.
2. Payer must act in good faith, which is presumed, that is, in the
honest belief that he is making a valid payment and that the
payee is the owner of the credit.
When debt considered paid
1. Integrity of the prestation — complete ful llment thereof.
2. Identity of the prestation — the very thing or service due
must be delivered or performed.
Substitution of prestation
1. Can be made if the obligee consents, i.e. in facultative
obligations (Art 1206).
2. There may be dation in payment (Art 1245) or novation (Art
1291), in case of waiver by the creditor or substitution is
allowed by stipulation with the consent of the creditor.
Waiver of defects — If creditor expressly so declares, or if, with
knowledge thereof, he accepts the thing without protest or disposes of
it or consumes it.
Rule of the medium quality — A principle of equity wherein the
court steps in whenever there is disagreement whether the contract to
deliver an indeterminate thing has been complied with.
Meaning of inflation and deflation
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In ation De ation When the debt is in part liquidated and in part unliquidated, the obligation is deemed fully complied with.
the creditor may demand and the debtor may e ect the
Sharp sudden increase of money Reduction in volume and Where payment is to be made
payment of the former without waiting for the liquidation of
or credit or both without a circulation of the available the latter. (Art 1248 par 2) a) If there is a stipulation — the place designated;
corresponding increase in money or credit.
Other instances where partial performance allowed: b) If there is NO stipulation
business transactions.
a) When the di erent prestations are subject to di erent i) If obligation to deliver a determinate specific thing —
Causes a drop in the value of Decline of the general price level. conditions or di erent terms; where the thing is usually or habitually placed at the
money, resulting in the rise of time the obligation was constituted.
the general price level. b) When a joint debtor pays his share or the creditor demands the
same; ii) For any other obligation — domicile of debtor.
ART 1250. In case an extraordinary in ation or de ation of c) When a solidary debtor pays only the part demandable because Application of Payments
the currency stipulated should supervene, the value of the the rest are not yet demandable; It is the designation of the debt to which should be applied to a
currency at the time of the establishment of the obligation
d) In case of compensation, when one debt is larger than the payment made by a debtor who owes several debts in favor of the same
shall be the basis of payment, unless there is an agreement to
other; creditor.
the contrary.
e) When work is to be done in parts. Requisites
Requisites for application of Art 1250
Substantial Performance in Good Faith a) There must be two or more debts;
1. O cial declaration of extraordinary in ation or de ation
from BSP; ART 1234. If the obligation has been substantially performed b) The debts must be of the same kind;

2. Obligation is contractual; and
3. Parties expressly agreed to consider the e ects of the
extraordinary in ation or de ation.
How payment to be made
A debt shall not be understood to have been paid unless the thing
or service in which the obligation consists has been completely
delivered or rendered, as the case may be. (Art 1233)
Estoppel
GR: Partial Payment NOT allowed; (Art 1248)
EXC: Unless there is an express stipulation to that e ect.
in good faith, the obligor may recover as though there had c) The debts are owed by the same debtor in favor of the same
been a strict and complete ful llment, less damages su ered by creditor;
the obligee.
d) All the debts must be due except:
➔ Applies only when an obligor admits breaching the contract
i) If the parties so stipulate; or
after honestly and faithfully performing all the material
elements thereof except for some technical aspects that cause ii) When the application of payment is made by the
no serious harm to the obligee. (IHC v. Joaquin, Jr.) party for whose bene t the term has been constituted.
e) The payment is not enough to extinguish all the debts.
Preferential Right of the Debtor — subject to limitations:
ART 1235. When the obligee accepts the performance,
a) If there was a valid prior but contrary agreement, the debtor
a) knowing its incompleteness or irregularity, and
cannot choose;
b) without expressing any protest or objection,

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b) The debtor cannot choose to pay part of the principal ahead of Cession is the process by which a debtor transfers all the properties d) May take place during the
insolvency;
the interest, unless the creditor consents. not subject to execution in favor of his creditors so that the latter may sell solvency of debtor; e) Does not transfer
How Made them, and thus apply the proceeds to their credits. ownership;
e) Transfers ownership upon
a) The debtor makes the designation at the time when payment is Requisites for Voluntary Assignment delivery; f) NOT an act of novation.
made; a) More than one debt; f) More of an act of novation.
b) If not, the creditor makes it, by so stating in the receipt that he b) More than one creditor;
issues, “unless there is cause for invalidating the contract;” Tender of Payment and Consignation
c) Complete or partial insolvency of debtor;
c) If no one made the application or it is invalid, then application 1. Tender of payment is the act of o ering the creditor what is due
d) Abandonment of all debtor’s property not exempt from
is made by operation of law: him together with a demand that the creditor accept the same.
execution;
i) If the debt produces interest, payment of the If the creditor to whom tender of payment has been made refuses
e) Acceptance or consent on the part of creditors.
principal shall not be deemed to have been made without just cause to accept it, the debtor shall be released from
until the interests have been covered. (Art 1253) Effect of Voluntary Assignment responsibility by the consignation of the thing or sum due.

ii) The debt which is most onerous to the debtor, a) Creditors are merely assignees with authority to sell; 2. Consignation is the act of depositing the thing due with the court
among those due, shall be deemed to have been or judicial authorities whenever the creditor cannot accept or
b) Debtor is released up to the amount of the net proceeds of the
satis ed. refuses to accept payment.
sale, unless there is a contrary stipulation. The balance remains
If the debts due are of the same nature and burden, collectible; Prior tender of payment is generally required. However,
the payment shall be applied to all of them Consignation alone shall produce the same e ect in the following
c) Creditors will collect credits in the order of preference agreed
proportionately. (Art 1254) cases:
upon.
1) When the creditor is absent or unknown, or does not
Payment by Cession
Dacion en pago Cession appear at the place of payment;
ART 1255. The debtor may cede or assign his property to his
creditors in payment of his debts. This cession, unless there is a) Does not a ect ALL a) Generally a ects ALL 2) When he is incapacitated to receive the payment at the
stipulation to the contrary, shall only release the debtor from properties; properties of the debtor; time it is due;
responsibility for the net proceeds of the thing assigned. The 3) When, without just cause, he refuses to give a receipt;
b) Does not require plurality b) Requires more than one
agreements which, on the e ect of the cession, are made
of creditors; creditor; 4) When two or more persons claim the same right to
between the debtor and his creditors shall be governed by
c) Only the speci c creditor’s c) Requires the consent of collect;
special laws.
consent is required; ALL creditors; 5) When the title of the obligation has been lost. (Art 1256)
d) Requires full or partial

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When Creditor Justified in Refusing Tender of Payment — if
the tender is invalid. To be valid, the following requisites must concur:
1) Must be made in legal tender;
2) Must include whatever interest is due;
3) Must generally be unconditional;
4) Obligation must already be due.
Essential Requisites for Consignation
1) Existence of a valid debt;
2) Valid prior tender, unless excused;
3) Prior notice of consignation (before deposit) — may be
accomplished simultaneously with tender of payment.
4) Actual consignation (deposit);
5) Subsequent notice of consignation.
Effects if Consignation Has Been Duly Made
a) The debtor may ask the judge to order the cancellation of the
obligation;
b) The running of interest is suspended;
c) Creditor bears the loss if
i) Consignation is judicially approved;
ii) All the essential requisites are present; or
iii) Creditor has signi ed his acceptance.
Effects of Withdrawal by Debtor After
Consignation Has Been Made
a) Obligation remains;
Reviewer
b) The creditor who authorized the withdrawal loses any
preference over the thing;
c) The co-debtors, guarantors, and sureties are released unless
they consented.
Filinvest Credit Corporation v. Philippine Acetylene Co.
The mere return of the mortgaged motor vehicle by the mortgagor to
the mortgagee does not constitute dation in payment or dacion en
pago in the absence, express or implied, of the true intention of the
parties.
Golez v. Camara
In right of redemption, no judicial consignation is necessary. A
bona fide tender of payment su ces.
Singson v. Caltex
Here, the in ation rate rose to 50.34% in 1984. We hold that there is
no legal or factual basis of the existence of extraordinary in ation
during this period. We are hard put to treat this as an "extraordinary
in ation" within the meaning and intent of Article 1250.
"Erosion" is an accurate description of the trend of decline in the
value of the peso in the past three to four decades. Moreover, this
Court has held that the effects of extraordinary inflation are
not to be applied without an official declaration thereof by
competent authorities.
By RGL
for the 2022 Bar
CF Sharp and Co., Inc. v. Northwest Airlines, Inc.
Obligations in foreign currency may be discharged in Philippine
currency based on the prevailing rate at the time of payment.
The rule that the value of the currency at the time of the
establishment of the obligation shall be the basis of payment nds
application only when there is an o cial pronouncement or
declaration of the existence of an extraordinary inflation or
deflation.
Far East Bank and Trust Co. (FEBTC) v. Diaz Realty, Inc.
For a valid tender of payment, it is necessary that there be a fusion of
intent, ability and capability to make good such o er, which must
be absolute and must cover the amount due. Though a check is not
legal tender, and a creditor may validly refuse to accept it if tendered
as payment, one who in fact accepted a fully funded check after the
debtor's manifestation that it had been given to settle an obligation is
estopped from later on denouncing the e cacy of such tender.
Aquintey v. Tibong
Dacion en pago is the delivery and transmission of ownership of a
thing by the debtor to the creditor as an accepted equivalent of the
performance of the obligation. The requisites for dacion en pago
are:
1) there must be a performance of the prestation in lieu of
payment (animo solvendi) which may consist in the delivery
of a corporeal thing or a real right or a credit against the
third person;
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2) there must be some di erence between the prestation due
and that which is given in substitution (aliud pro alio); and
3) there must be an agreement between the creditor and debtor
that the obligation is immediately extinguished by reason of
the performance of a prestation di erent from that due.
International Hotel Corp. v. Joaquin, Jr. & Suarez 2013
Article 1234 applies only when an obligor admits breaching the
contract after honestly and faithfully performing all the material
elements thereof except for some technical aspects that cause no
serious harm to the obligee. IHC correctly submits that the provision
refers to an omission or deviation that is slight, or technical and
unimportant, and does not a ect the real purpose of the contract.
Sps. Bonrostro v. Sps. Luna 2013 supra
When a tender of payment is made in such a form that the creditor
could have immediately realized payment if he had accepted the
tender, followed by a prompt attempt of the debtor to deposit the
means of payment in court by way of consignation, the accrual of
interest on the obligation will be suspended from the date of such
tender.
But when the tender of payment is not accompanied by the
means of payment, and the debtor did not take any immediate
step to make a consignation, then interest is not suspended
from the time of such tender.
Reviewer
NPC v. Ibrahim, et al. 2015
Mangondato—being the judgment creditor as well as the registered
owner of the subject land at the time—may be considered as a
“possessor of credit” with respect to the rental fees and
expropriation indemnity adjudged due for the subject land in the
two cases, if the Ibrahims and Maruhoms turn out to be the real
owners of the subject land. Hence, petitioner’s payment to
Mangondato of the fees and indemnity due for the subject land as a
consequence of the execution of the Civil Cases could still validly
extinguish its obligation to pay for the same even as against the
Ibrahims and Maruhoms.
Sinamban v. China Banking Corporation 2015
A co-maker of a PN who binds himself with the maker "jointly and
severally" renders himself directly and primarily liable with the
maker on the debt, without reference to his solvency.
Marquez v. Elisan Credit Corporation 2015
There is a need to analyze and harmonize Article 1176 and Article
1253 of the Civil Code to determine whether the daily payments
made after the second loan's maturity should be credited against the
interest or against the principal. Correlating the two provisions, the
rule under Article 1253 that payments shall rst be applied to the
interest and not to the principal shall govern if two facts exist:
1) the debt produces interest; and
2) the principal remains unpaid.
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Since the doubt in the present case pertains to the application of the
daily payments, Article 1253 shall apply. Only when there is a
waiver of interest shall Article 1176 become relevant.
Sps. Tan, et al. v. China Banking Corporation 2016
The right of the debtor to apply payment is merely directory in
nature and must be promptly exercised, lest such right passes to the
creditor.
Osmeña-Jalandoni v. Encomienda 2017
Jalandoni greatly bene ted from the purportedly unauthorized
payments. Thus, even if she asserts that Encomienda's payment of
her household bills was without her knowledge or against her will,
she cannot deny the fact that the same still inured to her bene t and
Encomienda must therefore be consequently reimbursed for it.
Loss of The Thing Due
Effect of Loss on an Obligation to Deliver Specific Thing
GR: Obligation EXTINGUISHED;
EXC: Not extinguished in the following cases:
1) The debtor is at fault;
2) The debtor is made liable for a fortuitous event.
Effect of Loss on an Obligation to Deliver Generic Thing
GR: Obligation NOT EXTINGUISHED — genus never
perishes;
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EXC: Extinguished in the following cases:
1) If the generic thing is delimited;
2) Has already been segregated or set aside, in which case, it
has become speci c.
Effect of Loss Through a Fortuitous Event in
Reciprocal Obligations
GR: The obligation that was not extinguished remains;
EXC: Extinguished in the following cases:
1) In the case of lease — if the object is destroyed, both the
lease and obligation to pay rent are extinguished (Art
1655);
2) In contracts for piece of work — If the thing is lost prior
to delivery, the worker cannot ask for the price.
Rebus sic stantibus (Art 1267)
1. This refers to the moral impossibility or impracticability due
to change of certain conditions.
2. When the service has become so di cult as to be manifestly
beyond the contemplation of the parties, the obligor may
also be released therefrom, in whole or in part.
3. It speaks of personal obligations and is thus inapplicable to real
obligations.
4. The following requisites must concur:
a) The service must become so di cult that it was
manifestly beyond the contemplation of both parties;
b) One of the parties must ask for relief;
Reviewer
c) The object must be a future service with future
unusual change in conditions.
Naga Telephone Co., et al. v. CA supra
Article 1267 speaks of “service” which has become so di cult.
Taking into consideration the rationale behind this provision, the
term “service” should be understood as referring to the
“performance” of the obligation. In the present case, the obligation
of private respondent consists in allowing petitioners to use its posts
Condonation or remission is the abandonment by the creditor of
in Naga City, which is the service contemplated in said article.
his right. Essential Requisites
It is not a requirement thereunder that the contract be for future
service with future unusual change. The allegations in private
respondent’s complaint and the evidence it has presented su ciently
made out a cause of action under Article 1267.
Eastern Telecom v. Eastern Telecoms Employees Union 2012
The parties to the contract must be presumed to have assumed the
risks of unfavorable developments. It is, therefore, only in absolutely
exceptional changes of circumstances that equity demands assistance
for the debtor by applying Art 1267. In the case at bench, the Court
determines that ETPI’s claimed depressed nancial state will not
release it from the binding e ect of the 2001-2004 CBA.
Presumptions
Tagaytay Realty Co., Inc. v. Gacutan 2015
Considering that the petitioner's unilateral suspension of the
construction of the amenities was intended to save itself from costs,
its plea for relief from its contractual obligations was properly
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rejected because it would thereby gain a position of advantage at the
expense of the lot owners like the respondent. Its invocation of
Article 1267 was factually unfounded.
Mere inconvenience, or unexpected impediments, or increased
expenses did not su ce to relieve the debtor from a bad bargain.
Condonation or Remission of Debt
1) There must be an agreement;
2) The parties must be capacitated and must consent;
3) There must be a subject matter;
4) The cause or consideration must be liberality;
5) The obligation remitted must have been demandable;
6) Must not be ino cious;
7) Formalities of a donation are complied with in case of
express remission;
8) They must be clearly and convincingly shown as they are
not to be presumed generally.
1) of Remission — The delivery of a private document
evidencing a credit, made voluntarily by the creditor to the
debtor. (Art 1271);
2) of Voluntary Delivery — Whenever the private document in
which the debt appears is found in the possession of the
debtor. (Art 1272);
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3) of Remission of Pledge — When the thing pledged, after its
delivery to the creditor, is found in the possession of the
debtor, or of a third person who owns the thing. (Art 1274)
Confusion or Merger of Rights
Confusion or merger is the meeting in one person of the qualities of
creditor and debtor with respect to the same obligation.
Essential Requisites
1) It should take place between the principal debtor and creditor;
2) Must be clear and de nite;
3) The very obligation involved must be the same or identical.
Compensation
Compensation is the extinguishment in the concurrent amount of
the obligations of those persons who are reciprocally debtors and
creditors of each other.
ART 1279. In order that compensation may be proper, it is
necessary:
1) That each one of the obligors be bound principally,
and that he be at the same time a principal creditor of
the other;
2) That both debts consist in a sum of money, or if the
things due are consumable, they be of the same kind,
and also of the same quality if the latter has been
stated;
3) That the two debts be due;
4) That they be liquidated and demandable;
Reviewer
5) That over neither of them there be any retention
or controversy, commenced by third persons and
communicated in due time to the debtor.
ART 1290. When all the requisites xxx are present,
compensation takes effect by operation of law, and
extinguishes both debts to the concurrent amount, even
though the creditors and debtors are not aware of the
compensation.
Compensation of Following are Prohibited
1) Debts arising from a depositum (Art 1287);
2) Debts arising from the obligations of a depositary (Art 1287);
3) Debts arising from the obligations of a bailee in commodatum
(Art 1287);
4) Debts arising from a claim for future support due by
gratuitous title (Art 1287);
5) Debts arising in civil liability arising from a penal o ense (Art
1288);
6) Damages su ered by a partnership through the fault of a
partner vis-a-vis pro ts and bene ts the erring partner may
have earned for the partnership by his industry (Art 1794).
Judicial Compensation or Set-off
ART 1283. If one of the parties to a suit over an obligation has
a claim for damages against the other, the former may set it o
by proving his right to said damages and the amount thereof.
Effect of Assignment on Compensation of Debts (Art 1285)
1) If made with consent of debtor — Compensation
CANNOT be set up except if the right thereto is reserved.
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2) With knowledge but without consent or against the will of
debtor — compensation can be set up regarding debts
previous to the assignment.
3) Without knowledge of debtor — Debtor can set up
compensation as a defense for all debts maturing prior to his
knowledge of the assignment.
Garcia v. Lim Chiu Sing
A share of stock or the certi cate thereof is not an indebtedness to
the owner nor evidence of indebtedness and, therefore, it is not a
credit. Stockholders, as such, are not creditors of the corporation.
Therefore, Lim Chu Sing not being a creditor of the Mercantile Bank
of China, although the latter is a creditor of the former, there is no
sufficient ground to justify a compensation.
Union Bank v. DBP 2014
Since DBP’s assumed obligations to Union Bank for remittance of
the lease payments are contingent on the prior payment thereof by
[FW] to DBP, it cannot be said that both debts are due. Also, any
de ciency that DBP had to make up for the full satisfaction of the
assumed obligations “cannot be determined until after the
satisfaction of Foodmasters’ obligation to DBP.” In this regard, it
cannot be concluded that the same debt had already been liquidated,
and thereby became demandable.
Novation
ART 1291. Obligations may be modi ed by:
1) Changing their object or principal conditions;
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2) Substituting the person of the debtor;
3) Subrogating a third person in the rights of the
creditor.
Novation is understood as the substitution or change of an obligation
by another, which extinguishes or modi es the rst, either changing its
object or principal condition, or substituting another in place of the
debtor, or subrogating a third person in the right of the creditor.
Essential Requisites
1) The old obligation must be valid;
2) The intent to extinguish or modify the old obligation by a
substantial di erence;
3) The capacity and consent of all parties except in expromision.
4) The new obligation must be valid.
How Implied Novation Made — by making substantial changes
1) In the object or subject matter;
2) In the cause or consideration;
3) In the principal terms or conditions
a) If a debt subject to a condition is made an absolute one;
b) Reduction of the term or period;
c) When, without consent of some subscribers, the capital
stock of a corporation is increased.
Instances Where there was NO Extinctive Novation
1) When there are only slight alterations or modi cations;
2) When the new contract merely contains supplementary
agreement;
Reviewer
3) When additional interest is agreed upon;
4) When additional security is given;
5) A contract was entered into providing a method of payment;
6) When a guarantor also becomes a principal debtor;
7) When the creditor in the meantime refrains from suing the
debtor, or extends the term of payment;
8) When the place of payment is changed or there is a variation in
the amount of partial payments;
9) When a public instrument is executed to con rm a valid
contract.
Substitution of Debtor (Art 1293)
a) Expromision — the initiative comes from a third person; (Art
1294)
b) Delegacion — the initiative comes from the debtor. Here the
three parties must agree. (Art 1295)
Requisites for Expromision
1) Initiative must come from a third person who will be the new
debtor;
2) The new debtor and creditor must consent;
3) The old debtor must be excused or released from his
obligation.
Requisites for Delegacion
1) The initiative comes from the old debtor;
2) All parties concerned must consent or agree;
Effect of Insolvency of New Debtor
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1) In expromision — If the substitution is without the
knowledge or against the will of the debtor, the new debtor's
insolvency or non-ful llment of the obligations shall not give
rise to any liability on the part of the original debtor. (Art
1294)
2) In delegacion — shall not revive the action of the creditor
against the original obligor,
EXC: when said insolvency was already existing and of
public knowledge, OR known to the debtor,
when he delegated his debt. (Art 1295)
Subrogation
Extinctive subjective novation by change of creditor is the transfer to a
third person of all the rights appertaining to the creditor.
ART 1301. Conventional subrogation of a third person
requires the consent of the original parties and of the third
person.
ART 1302. It is presumed that there is legal subrogation:
1) When a creditor pays another creditor who is
preferred, even without the debtor's knowledge;
2) When a third person, not interested in the obligation,
pays with the express or tacit approval of the debtor;
3) When, even without the knowledge of the debtor, a
person interested in the ful llment of the obligation
pays, without prejudice to the e ects of confusion as
to the latter's share.
Babst v. CA
Due to the failure of BPI to register its objection to the take-over by
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DBP of ELISCON's assets, it is deemed to have consented to the
substitution of DBP for ELISCON as debtor. Hence, there was a
valid novation which resulted in the release of ELISCON from its
obligation to BPI, whose cause of action should be directed against
DBP as the new debtor.
Philippine Savings Bank v. Manalac, Jr.
There was no agreement to form a new contract by novating the
mortgage contracts of the Mañalacs and the Galicias. In accepting the
check, the bank only acceded to Mañalac’s instruction on whose loan
accounts the proceeds shall be applied but rejected the other
condition that the 4 parcels of land be released from mortgage.
Clearly, there is no mutual consent to replace the old mortgage
contract with a new obligation.
Neither can Mañalac be deemed substitute debtor within the
contemplation of Article 1293. Mañalac has not shown that they
were expressly taking the place of Galicia as debtor, or that the latter
were being released from their solidary obligation. Nor was it shown
that the obligation of the Galicias was being extinguished and
replaced.
Odiamar v. Valencia 2016
The fact that the creditor accepts payments from a third person, who
has assumed the obligation, will result merely in the addition of
debtors and not novation.
Reviewer
Ever Electrical Manufacturing, Inc. v.
2016
Philippine Bank of Communications
Under the terms of the agreement, Vicente is an additional person
who would ensure that the loan of Ever to PBCom would be paid.
Under the rules of novation, the mere act of adding another person
to be personally liable, who in this case is Vicente, did not
constitute novation since there was no agreement to release Ever
from its responsibility to PBCom.
Figuera v. Ang 2016
A person interested in the fulfilment of the obligation is one
who stands to be bene ted or injured in the enforcement of the
obligation. The Court agrees with Figuera that it became absolutely
necessary for her to pay the bills since Ang did not do so when the
obligation became due.
The consent or approval of the debtor is required only if a third
person who is not interested in the ful lment of the obligation pays
such. On the other hand, no such requirement exists in cases of
payment by a creditor to another creditor who is preferred, and by a
person interested in the ful lment of the obligation.
Therefore, legal subrogation took place despite the absence of
Ang's consent to Figuera's payment of the EIDC bills. Figuera is
now deemed as Ang's creditor by operation of law.
Liam v. UCPB 2016
The transaction between UCPB and PPGI was an assignment of
credit and not subrogation.
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The crucial distinction between assignment and subrogation actually
deals with the necessity of the consent of the debtor in the original
transaction. In an assignment of credit, the consent of the debtor is
not necessary. Only notice is required.
Meanwhile, subrogation requires an agreement among the three
parties concerned — the original creditor, the debtor, and the new
creditor. The MOA and the Deed of Sale/Assignment clearly state
that UCPB became an assignee of PPGI's outstanding receivables of
its condominium buyers.
SM Systems Corporation v. Camerino, et al. 2017
The compromise agreements executed by and between SMS and
four of the farmers are valid, thus, a novation of the judgment in the
redemption case.
SMS' obligation to allow redemption of the three parcels of land was
superseded by the terms of the compromise agreements executed
with the four farmers. Novation, thus, arose as the old obligation
became incompatible with the new.
B Contracts
1 General provisions
ART 1305. A contract is a meeting of minds between two
persons whereby one binds himself, with respect to the other,
to give something or to render some service.
1) Binding force — Has the force of law and neither of the
parties may without the consent of the other, renege
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therefrom. It should not be contrary to law, morals, good
customs, public order, or public policy. (Art 1306).
2) Requirements of a valid contract — Must be valid and
enforceable (Art 1403), with all the essential elements (Art
1318) and is not contrary to law, morals, good customs, public
order, and public policy. A void contract does not exist. A
contract may be valid but unenforceable (Arts 1317,
1403).
3) Where contract requires approval by the government —
Such contract becomes the law between the parties only when
approved and its validity must be sustained.
1. Principles
4) Compliance in good faith — No party is permitted to
change his mind or disavow or go back upon his own acts, or
proceed contrary thereto, to the prejudice of the other party.
5) Liability for breach of contract — Our law on contracts
recognizes the principle that actionable injury inheres in every
contractual breach (Arts 1170, 1191).
6) Unreasonable delay in demanding performance — May
render the contract ine ective where it does not provide for
the period within which performance may be demanded but
the parties did not contemplate that the same could be made
inde nitely.
7) Preservation of interest of promisee — The e ect of every
infraction is to create a new duty, that is, to make recompense
to the one who has been injured by the failure of another to
observe his contractual obligation unless he can show
extenuating circumstances.
Sps Pascual v. Ramos
Reviewer
The interest rate of 7% per month was voluntarily agreed upon by
RAMOS and the PASCUALs. There is nothing from the records
and, in fact, there is no allegation showing that petitioners were
victims of fraud when they entered into the agreement with
RAMOS. Neither is there a showing that in their contractual
relations with RAMOS, the PASCUALs were at a disadvantage on
account of their moral dependence, ignorance, mental weakness,
tender age or other handicap, which would entitle them to the
vigilant protection of the courts as mandated by Article 24 of the
Civil Code.
a) Freedom to Stipulate or Autonomy or Liberality — The
contracting parties may establish such stipulations, clauses,
terms and conditions as they may deem convenient, provided
they are not contrary to law, morals, good customs, public
order, or public policy. (Art 1306)
b) Mutuality — The contract must bind both contracting
parties; its validity or compliance cannot be left to the will of
one of them. (Art 1308)
c) Relativity — Contracts take e ect only between the parties,
their assigns and heirs, except in case where the rights and
obligations arising from the contract are not transmissible by
their nature, or by stipulation or by provision of law. (Art
1311)
d) Consensuality — Contracts are perfected by mere consent
xxx (Art 1315)
e) Obligatory Force — xxx Parties are bound not only to the
ful llment of what has been expressly stipulated but also to all
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the consequences which, according to their nature, may be in
keeping with good faith, usage and law. (Art 1315)
Liberty or Autonomy of Contracts
Tee v. Tacloban Electric and Ice Plant Co.
Under the principles relating to the doctrine of public policy, as
applied to the law of contracts, courts of justice will not recognize or
uphold any transaction which, in its object, operation, or tendency, is
calculated to be prejudicial to the public welfare, to sound morality,
or to civic honesty. The test is whether the parties have
stipulated for something inhibited by the law or inimical to, or
inconsistent with, the public welfare.
Industrial Personnel and Management
2016
Services, Inc. v. De Vera, et al.
The general rule is that Philippine laws apply even to overseas
employment contracts. As an exception, the parties may agree that a
foreign law shall govern the employment contract subject to the
following requisites:
1. That it is expressly stipulated in the overseas employment
contract that a speci c foreign law shall govern;
2. That the foreign law invoked must be proven before the
courts pursuant to the Philippine rules on evidence;
3. That the foreign law stipulated in the overseas employment
contract must not be contrary to law, morals, good customs,
public order, or public policy of the Philippines; and
4. That the overseas employment contract must be processed
through the POEA.
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Further, these strict terms are pursuant to the jurisprudential
doctrine that "parties may not contract away applicable provisions of
law especially peremptory provisions dealing with matters heavily
impressed with public interest," such as laws relating to labor.
Mutuality of Contracts
Allied Banking Corporation v. CA
Whether a stipulation in a contract of lease to the effect that the
contract "may be renewed for a like term at the option of the lessee" is
void for being potestative or violative of the principle of mutuality of
contracts under Art. 1308.
NO. The fact that such option is binding only on the lessor and can
be exercised only by the lessee does not render it void for lack of
mutuality. After all, the lessor is free to give or not to give the option
to the lessee. Mutuality obtains in such a contract and equality exists
between the lessor and the lessee since they remain with the same
faculties in respect to ful llment.
PNB v. CA
We cannot countenance petitioner bank's posturing that the
escalation clause at bench gives it unbridled right to unilaterally
upwardly adjust the interest on private respondents' loan. That
would completely take away from private respondents the right to
assent to an important modi cation in their agreement, and would
negate the element of mutuality in contracts.
Buenaventura v. MBTC 2016
Reviewer
A contract of adhesion is so-called because its terms are prepared by
only one party while the other party merely a xes his signature
signifying his adhesion thereto. The terms and conditions of the
promissory notes involved herein, being clear and beyond doubt,
should then be enforced accordingly. It does not exempt the parties
from compliance with what was mutually agreed upon by them.
Relativity of Contracts
Exceptions
a) Where the rights and obligations arising from the contract are
not transmissible by their nature, or by stipulation or by
provision of law;
b) Stipulation pour autrui — if a contract should contain
some stipulation in favor of a third person;
c) Tortious interference — Where a third person induces
another to violate his contract, he shall be liable for damages to
the other contracting party; (Art 1314)
So Ping Bun v. CA laid out the elements of tortious
interference:
1) existence of a valid contract;
2) knowledge on the part of the third person of the
existence of contract; and
3) interference of the third person is without legal
justi cation or excuse. (see Excellent Essentials v.
Extra Excel 2018)
d) Where third persons may be adversely a ected by a contract
where they did not participate;
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e) Accion directa — Where the law authorizes the creditor to
sue on a contract entered into by his debtor.
Florentino v. Encarnacion
A stipulation pour autrui is a stipulation in favor of a third
person. The requisites are:
1) there must be a stipulation in favor of a third person.
2) the stipulation must be a PART, not the whole of the
contract.
3) the contracting parties must have clearly and deliberately
conferred a favor upon a third person, not a mere incidental
bene t or interest.
4) the third person must have communicated his acceptance to
the obligor before its revocation.
5) neither of the contracting parties bears the legal
representation or authorization of the third party.
Sps Pontigon, et al v. Heirs of Sanchez 2016
The principle of relativity of contracts dictates that contractual
agreements can only bind the parties who entered into them, and
cannot favor or prejudice third persons, even if he is aware of such
contract and has acted with knowledge thereof.
As a general rule, the heirs of the contracting parties are precluded
from denying the binding e ect of the valid agreement entered into
by their predecessors-in-interest. This is so because they are not
deemed "third persons" to the contract within the contemplation of
law. It is then immaterial that the Extrajudicial Settlement executed
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by Flaviana was not properly notarized for the said document to be
binding on her heirs.
Consensuality of Contracts
ABS-CBN v. CA, et al.
A quali ed acceptance, or one that involves a new proposal,
constitutes a counter-o er and is a rejection of the original o er.
Consequently, when something is desired which is not exactly what
is proposed in the o er, such acceptance is not su cient to generate
consent because any modi cation or variation from the terms of the
o er annuls the o er.
DBP v. Perez
There was no evidence showing that the respondents signed the new
promissory note through mistake, violence, intimidation, undue
in uence, or fraud. The respondents merely alleged that they were
forced to restructure their loan for fear of having their mortgaged
properties foreclosed. However, it is axiomatic that this would not
amount to vitiated consent. A threat to foreclose the mortgage
would NOT, per se, vitiate consent.
Archbishop Capalla v. Comelec 2012 En Banc
In this jurisdiction, the award of public contracts, through public
bidding, is a matter of public policy. The parties are, therefore, not at
full liberty to amend or modify the provisions of the contract bidded
upon. The three principles of public bidding are:
1) the o er to the public;
Reviewer
2) an opportunity for competition; and
3) a basis for the exact comparison of bids.
A winning bidder is not precluded from modifying or amending
certain provisions of the contract bidded upon. However, such
changes must not constitute substantial or material amendments that
would alter the basic parameters of the contract and would constitute
a denial to the other bidders of the opportunity to bid on the same
terms.
Obligatory Force of Contracts
Laguna Tayabas Bus v. Manabat
Where a person by his contract charges himself with an
obligation possible to be performed, he must perform it, unless
the performance is rendered impossible by the act of God, by the law,
or by the other party, it being the rule that in case the party desires to
3. Classi cation
be excused from the performance in the event of contingencies
arising, it is his duty to provide therefor in his contract.
2. Stages
a) preparation, conception, or generation, which is the period of
negotiation and bargaining, ending at the moment of
agreement of the parties;
b) perfection or birth of the contract, which is the moment
when the parties come to agree on the terms of the contract;
and
c) consummation or death, which is the ful llment or
performance of the terms agreed upon in the contract.
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Metro Rail Transit v. Gammon Philippines 2018
To determine when the contract was perfected, the acceptance of
the o er must be unquali ed, unconditional, and made known to
the o eror. Before knowing of the acceptance, the o eror may
withdraw the o er. Moreover, if the o eror imposes the manner of
acceptance to be done by the o eree, the o eree must accept it in that
manner for the contract to be binding. If the o eree accepts the o er
in a di erent manner, it is not e ective, but constitutes a
counter-o er, which the o eror may accept or reject.
In bidding contracts, this Court has ruled that the award of the
contract to the bidder is an acceptance of the bidder's o er. Its e ect
is to perfect a contract between the bidder and the contractor upon
notice of the award to the bidder. Thus, the award of a contract to a
bidder perfects the contract. Failure to sign the physical contract does
not affect the contract's existence.
a) According to perfection or formation
i) Consensual;
ii) Real — perfected by delivery.
1) Depositum;
2) Pledge;
3) Commodatum. (Art 1316)
iii) Formal or Solemn — where special formalities are
essential before perfection.
1) Donation inter vivos of real property requires
for its validity a public instrument.
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nominate contracts, and by the customs of the place.

b) According to cause or equivalence of the value of 2) Object certain which is the subject matter of the
(Art 1307)
prestations contract;
1) Do ut des — I give that you may give;
i) Onerous — there is an interchange of equivalent 3) Cause of the obligation which is established.
valuable consideration; 2) Do ut facias — I give that you may do;
Consent
ii) Gratuitous or lucrative — one party receives no 3) Facio ut des — I do that you may give;
equivalent prestation; Requisites of Consent
4) Facio ut facias — I do that you may do.
iii) Remunerative — one prestation is given for a service 1) There must be two or more parties;
f) According to the risk of fulfillment
or bene t that had been rendered previously. 2) The parties must be capable or capacitated;
i) Commutative — real ful llment is contemplated;
c) According to importance or dependence of one upon 3) There must be no vitiation of consent;
another ii) Aleatory — the ful llment is dependent upon
chance, e.g. insurance contract. 4) There must be no con ict between what was expressly
i) Principal — the contract may stand alone, e.g. sale, declared and what was really intended;
lease; g) According to the time of performance or fulfillment
5) The intent must be declared properly.
ii) Accessory — depends for its existence upon another i) Executed — obligations are all complied with;
Requisites for the Meeting of the Minds
contract, e.g. mortgage; ii) Executory — the prestations are to be complied with
at some future time. 1) An o er that must be certain; and
iii) Preparatory — not an end by itself but as a means
for future transactions or contracts, e.g. agency, h) According to subject matter — contracts involving 2) An acceptance that must be unquali ed and absolute.
partnership. Offer Ineffective
i) Things — e.g. sale;
d) According to the parties obligated ART 1323. An o er becomes ine ective upon the death, civil
ii) Rights or credits — e.g. usufruct, assignment of
i) Unilateral — only one party has an obligation, e.g. credits; interdiction, insanity, or insolvency of either party before
commodatum; acceptance is conveyed.
iii) Services — e.g. agency, lease of services, common
ii) Bilateral — both parties are required to render carriage. Option Contracts
reciprocal prestations.
2 Essential requisites ART 1324. When the o erer has allowed the o eree a certain
e) According to their name or designation period to accept, the o er may be withdrawn at any time
ART 1318. There is no contract unless the following requisites before acceptance by communicating such withdrawal, except
i) Nominate;
concur: when the option is founded upon a consideration, as something
ii) Innominate — shall be regulated by the stipulations paid or promised.
1) Consent of the contracting parties;
of the parties, by the provisions on Obligations and
Contracts, by the rules governing the most analogous

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An option is a preparatory contract in which one party grants to a) Generally, spouses cannot sell to each other (Art 1490), ART 1330. A contract where consent is given through
the other, for a xed period and under speci ed conditions, the power nor can they donate to each other (Art 134). Transactions mistake, violence, intimidation, undue in uence, or
to decide whether or not to enter into a principal contract. are VOID, but only those prejudiced can assail the validity fraud is VOIDABLE.
of the transaction.
It is a separate agreement distinct from the contract which the parties Requisites for MISTAKE to Vitiate Consent
may enter into upon the consummation of the option. (Carceller v. b) Insolvents before they are discharged cannot make
payments. 1) The error must be substantial regarding
CA)
c) Persons disquali ed because of fiduciary relationship. a) The object of the contract;
Option Money Earnest Money (Art 1491) b) The conditions which principally moved or induced
one of the parties;
Given as a distinct Part of purchase price
Yuviengco v. Dacuycuy
consideration c) Identity or quali cations if such were the principal
Yao King Ong's telegram simply says "we agree to buy property". cause.
Applies to a sale not yet Given only where there is
It does not necessarily connote acceptance of the price but instead 2) The error must be excusable and not caused by negligence;
perfected already a sale
suggests that the details were to be subject of negotiation. Instead of
3) The error must be a mistake of fact, and not of law.
Not required to buy When given, buyer is bound to "absolutely" accepting the "certain" o er - if there was one - of the
pay the balance petitioners, respondents still insisted on further negotiation of details. Requisites for MUTUAL ERROR to Vitiate Consent
1) There must be mutual error;
Persons Incapacitated to Give Consent (Art 1327) Parties and Capacity
2) The error must refer to the legal e ect of the agreement;
a) Unemancipated minors; Frias v. Esquivel
3) The real purpose of the parties is frustrated.
b) Insane or demented persons, unless entered into during lucid
Inasmuch as Perpetua P. Zaragoza does not appear to have been Requisites for VIOLENCE to Vitiate Consent
intervals (Art 1328);
appointed a judicial guardian of her minor children with the power
c) Deaf-mutes who do not know how to write. to sell their property, the aforesaid deed of conveyance is, therefore, 1) Employment of serious or irresistible force;

Persons Specially Disqualified
1. Here, the transaction is VOID because the right itself is
restricted.
2. However, if there is mere legal incapacity, such as when only
the exercise of the right is restricted, then the transaction is
merely VOIDABLE.
Vices of Consent (Arts 1330-1344)
unenforceable. 2) It must have been the reason why the contract was entered
into.
With regard to Ricardo Esquivel, the CA found him to be insane at
the time of the execution of the deed of conveyance. This nding Requisites for INTIMIDATION to Vitiate Consent
shows that the said deed is VOID as to him for there was lack of
1) Reasonable and well-grounded fear
authority on the part of his mother Perpetua to sell his portion, she
2) Of an imminent and grave evil
not having been appointed judicial guardian of said Ricardo.
3) Upon his person, property, or upon the person or property of
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4) It must have been the reason why the contract was entered into
5) The threat must be of an unjust act, an actionable wrong.
Requisites for UNDUE INFLUENCE to Vitiate Consent
1) Improper advantage;
2) Power over the will of another;
3) Deprivation of the latter’s will of a reasonable freedom of
choice.
Requisites of Dolo Causante under Art 1338
1) The fraud must be material and serious that it really induced
the consent. (Art 1344)
2) The fraud must have been employed by only one of the parties.
3) There must be a deliberate intent to deceive or to induce. (Art
1343)
4) The other party must have relied on the untrue statement and
must himself not be guilty of negligence in ascertaining the
truth.
Failure to Disclose Facts
ART 1339. Failure to disclose facts, when there is a duty to
reveal them, as when the parties are bound by con dential
relations, constitutes fraud.
Caveat Emptor
ART 1340. The usual exaggerations in trade, when the other
party had an opportunity to know the facts, are NOT in
themselves fraudulent.
Mere Expression of an Opinion
Reviewer for the 2022 Bar
ART 1341. A mere expression of an opinion does not signify prudent person into error; that which cannot deceive a prudent
fraud, unless made by an expert and the other party has person cannot be a ground for nullity.
relied on the former's special knowledge.
Simulation of Contracts (Arts 1345-1346)
Misrepresentation
It is the process of intentionally deceiving others by producing the
ART 1342. Misrepresentation by a third person does not appearance of a contract that really does not exist (absolute) or
vitiate consent, unless such misrepresentation has created which is di erent from the true agreement (relative).
substantial mistake and the same is mutual.
Requisites for Simulation
ART 1343. Misrepresentation made in good faith is not
1) An outward declaration of will different from the will of the
fraudulent but may constitute error.
parties;
Requisites for FRAUD to Vitiate Consent
2) The false appearance must have been intended by mutual
1) The fraud must be serious; agreement;
2) The parties must NOT be in pari delicto. 3) The purpose is to deceive third persons.
Kinds of Simulated Contracts
Tankeh v. DBP 2013
a) Absolute — parties do not intend to be bound; VOID
There are two types of fraud contemplated in the performance of
b) Relative — parties conceal their true agreement. They are
contracts: dolo incidente or incidental fraud and dolo causante or
then bound to the real or true agreement except
fraud serious enough to render a contract voidable.
i) If the contract should prejudice third persons; or
In order to constitute fraud that provides basis to annul contracts, it
must ful ll two conditions. ii) If the purpose is contrary to law, morals, good
customs, public order, or public policy.
1. First, the fraud must be dolo causante or it must be fraud
in obtaining the consent of the party.
Sps Ladanga v. CA
2. Second, this fraud must be proven by clear and
A contract of sale is void and produces no e ect whatsoever where
convincing evidence.
the price, which appears therein as paid, has in fact never been paid
The misrepresentation constituting the fraud must be established by by the purchaser to the vendor. Such a sale is inexistent and cannot
full, clear, and convincing evidence, and not merely by a be considered consummated.
preponderance thereof. The deceit must be serious. The fraud is
serious when it is su cient to impress, or to lead an ordinarily
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Object
Requisites
1) The thing or service must be within the commerce of man;
2) Must be transmissible;
3) Must not be contrary to law, morals, good customs, public
order, or public policy;
4) Must not be impossible (Art 1348);
5) Must be determinate as to its kind or determinable without
the need of a new contract or agreement (Art 1349).
De Belen Vda De Cabalu v. Tabu & Laxamana 2012
Paragraph 2 of Article 1347, characterizes a contract entered into
upon future inheritance as VOID. The law applies when the
following requisites concur:
1) the succession has not yet been opened;
2) the object of the contract forms part of the inheritance; and
3) the promissor has, with respect to the object, an expectancy
of a right which is purely hereditary in nature.
In this case, at the time the deed was executed, Faustina’s will was not
yet probated; the object of the contract, the 9,000 square meter
property, still formed part of the inheritance of his father from the
estate of Faustina; and Domingo had a mere inchoate hereditary
right therein.
Cause
A consideration, in the legal sense of the word, is some right,
interest, bene t, or advantage conferred upon the promisor, to
Reviewer for the 2022 Bar
which he is otherwise not lawfully entitled, or any detriment,
ii) Those agreed upon in representation of absentees, if
prejudice, loss, or disadvantage su ered or undertaken by the
the latter su er the lesion stated in the preceding
promisee other than to such as he is at the time of consent bound
number; (Art 1381[2])
to su er.
iii) In partition, when any one of the co-heirs received
Requisites
things whose value is less, by at least one-fourth,
1) Must be present at the time the contract was entered into; than the share to which he is entitled. (Art 1098)
2) Must be true;
Cojuangco, Jr. v. Republic 2012 En Banc
3) Must be lawful.
The presumption that a contract has sufficient consideration
Motive distinguished from Cause
cannot be overthrown by the bare uncorroborated and self-serving
assertion of petitioners that it has no consideration. To overcome the
Motive Cause
presumption of consideration, the alleged lack of consideration must
May vary although he enters Always the same be shown by preponderance of evidence.
into the same contract Inadequacy of the consideration, however, does not render a
contract void under Article 1355. While one may posit that the
May be unknown to the other Always known
PCA-Cojuangco Agreement puts PCA and the coconut farmers at a
Di cult to separate from cause Its absence cannot be cured by disadvantage, the facts do not make out a clear case of violation of
presence of motive any law that will necessitate the recall of said contract.
While consideration is usually in the form of money or property, it
Lesion — It is the inadequacy of cause.
need not be monetary. This is clear from Article 1350.
GR: Lesion does NOT invalidate a contract.
EXC:
Sta. Fe Realty Inc., et al. v. Sison 2016
a) When there has also been fraud, mistake or undue in uence;
Gross inadequacy of price does not even a ect the validity of a
b) In cases expressly provided by law:
contract of sale, unless it signi es a defect in the consent or that the
i) Those which are entered into by guardians whenever parties actually intended a donation or some other contract.
the wards whom they represent su er lesion by more Inadequacy of cause will not invalidate a contract unless there has been
than one-fourth of the value of the things which are fraud, mistake or undue influence.
the object thereof; (Art 1381[1])
Petitioners are assailing the deeds of sale for being absolutely
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simulated and for inadequacy of the price. However, these two
grounds are incompatible. If there exists an actual consideration
for transfer evidenced by the alleged act of sale, no matter how
inadequate it be, the transaction could not be a simulated sale.
3 Reformation of instruments
1. Reformation is that remedy in equity by means of which a
written instrument is made or construed so as to express or
conform to the real intention of the parties.
2. An action for reformation is in personam, not in rem, xxx
even when real estate is involved.
3. May prosper only upon the concurrence of the following
requisites:
a) there must have been a meeting of the minds of the
parties to the contact;
b) the instrument does not express the true intention
of the parties; and
c) the failure of the instrument to express the true
intention of the parties is due to mistake, fraud,
inequitable conduct or accident.
4. The onus probandi is upon the party who insists that the
contract should be reformed.
5. The prescriptive period for actions based upon a written
contract and for reformation of an instrument is ten (10)
years under Article 1144.
6. Under Section 1, Rule 64, an action for the reformation of an
instrument is instituted as a special civil action for
declaratory relief. It may be entertained only before the
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breach or violation of the law or contract to which it
refers.
When Instrument may be Reformed
1) When a mutual mistake of the parties causes the failure of the
instrument to disclose their real agreement; (Art 1361)
2) If one party was mistaken and the other acted fraudulently or
inequitably in such a way that the instrument does not show
their true intention; (Art 1362)
3) When one party was mistaken and the other knew or believed
that the instrument did not state their real agreement, but
concealed that fact; (Art 1363)
4) When through the ignorance, lack of skill, negligence or bad
faith on the part of the person drafting the instrument or of
the clerk or typist, the instrument does not express the true
intention of the parties; (Art 1364)
5) If two parties agree upon the mortgage or pledge of real or
personal property, but the instrument states that the property
is sold absolutely or with a right of repurchase. (Art 1365)
When Reformation NOT Allowed
1) Simple donations inter vivos wherein no condition is imposed;
2) Wills;
3) When the real agreement is VOID; (Art 1366)
4) When one of the parties has brought an action to enforce the
instrument; (Art 1367)
Sarming v. Dy, et al.
There was a meeting of the minds between the parties to the contract
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but the deed did not express the true intention of the parties due to
mistake in the designation of the lot subject of the deed. There is no
dispute as to the intention of the parties to sell the land to Alejandra
Del no but there was a mistake as to the designation of the lot
intended to be sold.
Bentir v. Leanda
Whether the complaint for reformation of instrument has prescribed.
YES. Respondent corporation had ten (10) years from 1968, the
time when the contract of lease was executed, to le an action for
reformation. Sadly, it did so only on May 15, 1992 or twenty-four
(24) years after the cause of action accrued, hence, its cause of action
has become stale, hence, time-barred.
4 Interpretation of contracts
The "interpretation" of a contract is the determination of the
meaning attached to the words written or spoken which make the
contract.
Kasilag v. Rodriguez
The cardinal rule in the interpretation of contracts is to the e ect
that the intention of the contracting parties should always prevail
because their will has the force of law between them.
The terms, clauses and conditions contrary to law, morals and public
order should be separated from the valid and legal contract when
such separation can be made because they are independent of the
valid contract which expresses the will of the contracting parties.
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valid, by means of the restoration of things to their condition

entitled to liquidated damages. Substantial completion of the
at the moment prior to the celebration of said contract.
project equates to achievement of 95% project completion which
Sy v. CA
excuses the contractor from the payment of liquidated damages. 2. It is a relief allowed for the protection of one of the
In order to judge the intention of the parties, their contemporaneous contracting parties and even third persons from all injury and
As expressly stated under Articles 1234 and 1376, and in
and subsequent acts shall be principally considered. damage the contract may cause, or to protect some
jurisprudence, the construction industry's prevailing practice
incompatible and preferent right created by the contract.
may supplement any ambiguities or omissions in the stipulations
of the contract. 3. Rescission implies a contract which, even if initially valid,
Angeles v. Calasang produces a lesion or pecuniary damage to someone that
The Four Kinds of Defective Contracts in decreasing validity justi es its invalidation for reasons of equity.
The contract to sell, being a contract of adhesion, must be construed
against the party causing it. Validity Reason for Defect Rati able 4. The action for rescission is subsidiary; it cannot be instituted
except when the party su ering damage has no other legal
Extrinsic, consisting
Valid until means to obtain reparation for the same. (Art 1383)
Rescissible
rescinded
of economic damage ✘
Century Properties, Inc. v. Babiano, et al 2016 or lesion 5. The acquisition by a third person of the property subject of
The rule is that where the language of a contract is plain and the contract is an obstacle to the action for its rescission
Valid until Intrinsic, as in vitiated
unambiguous, its meaning should be determined without reference Voidable
annulled consent
✔ where it is shown that such third person is in lawful possession
to extrinsic facts or aids. The intention of the parties must be of the subject of the contract and that he did not act in bad
gathered from that language, and from that language alone. faith. (Art 1385)
Lack of authority;
Thus, in the interpretation of contracts, the Court must rst Has no Failure to comply 6. The kinds of rescissible contracts, according to the reason for
determine whether a provision or stipulation therein is ambiguous. Unenforceable e ect for with Statute of ✔ their susceptibility to rescission, are the following:
Absent any ambiguity, the provision on its face will be read as it is now Frauds; Both parties a. first, those which are rescissible because of lesion or
written and treated as the binding law of the parties to the contract. lack capacity prejudice;
Void or No e ect b. second, those which are rescissible on account of
Inexistent at all
Various, see Art 1409 ✘ fraud or bad faith; and
Werr International Corporation v. Highlands Prime 2017
c. third, those which, by special provisions of law, are
Deemed incorporated into every contract are the general provisions 5 Rescissible contracts susceptible to rescission.
on obligations and interpretation of contracts found in the Civil
1. Rescission is a remedy granted by law to the contracting Requisites for Rescission
Code.
parties and even to third persons, to secure reparations for 1) There must be at the beginning either a valid or voidable
In previous cases, we applied Articles 1234 and 1376 in
damages caused to them by a contract, even if this should be contract;
construction agreements to determine whether the project owner is

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2) But there is an economic prejudice to a party or third person;
3) Requires mutual restitution. (Art 1385)
Enumeration of Rescissible Contracts
ART 1381. The following contracts are rescissible:
1) Those which are entered into by guardians whenever
the wards whom they represent su er lesion by more
than one-fourth of the value of the things which are
the object thereof;
2) Those agreed upon in representation of absentees, if
the latter su er the lesion stated in the preceding
number;
3) Those undertaken in fraud of creditors when the
latter cannot in any other manner collect the claims
due them;
4) Those which refer to things under litigation if they
have been entered into by the defendant without the
knowledge and approval of the litigants or of
competent judicial authority; xxxx
Requisites for an Accion Pauliana to Accrue (Par 3 of Art 1381)
1) That the plainti asking for rescission has a credit prior to
the alienation, although demandable later;
2) That the debtor has made a subsequent contract conveying a
patrimonial bene t to a third person;
3) That the creditor has no other legal remedy to satisfy his
claim, but would bene t by rescission of the conveyance to the
third person;
4) That the act being impugned is fraudulent;
Reviewer
5) That the third person who received the property conveyed, if
by onerous title, has been an accomplice in the fraud.
An accion pauliana presupposes the following:
1) A judgment;
2) the issuance by the trial court of a writ of execution for the
satisfaction of the judgment, and
3) the failure of the sheri to enforce and satisfy the judgment of
the court.
The following successive measures must be taken by a creditor before
he may bring an action for rescission of an allegedly fraudulent sale:
1) exhaust the properties of the debtor through levying by
attachment and execution upon all the property of the debtor,
except such as are exempt from execution;
2) exercise all the rights and actions of the debtor, save those
personal to him (accion subrogatoria); and
3) seek rescission of the contracts executed by the debtor in fraud
of their rights (accion pauliana).
Premature Payments Made in a State of Insolvency (Art 1382)
Two requisites must concur:
1) The debtor-payer must have been insolvent;
2) The debt was not yet due and demandable.
Presumptions of Fraud (Art 1387)
a) In case of gratuitous alienations — when the debtor did
not reserve su cient property to pay all debts contracted
before the donation.
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b) In case of onerous alienations — when made by persons
against whom
i) some judgment has been rendered in any instance; or
ii) some writ of attachment has been issued.
The decision or attachment need not refer to the property
alienated, and need not have been obtained by the party
seeking the rescission.
Badges of Fraud
In the early case of Oria v. Mcmicking, the Supreme Court considered
the following instances as badges of fraud:
1. The fact that the consideration of the conveyance is ctitious
or is inadequate.
2. A transfer made by a debtor after suit has begun and while it
is pending against him.
3. A sale upon credit by an insolvent debtor.
4. Evidence of large indebtedness or complete insolvency.
5. The transfer of all or nearly all of his property by a debtor,
especially when he is insolvent or greatly embarrassed
nancially.
6. The fact that the transfer is made between father and son,
when there are present other of the above circumstances.
7. The failure of the vendee to take exclusive possession of all
the property.
Rosencor Development Corporation v. Inquing, et al.
May a contract of sale entered into in violation of a third party's right
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of first refusal be rescinded in order that such third party can exercise like creditors. The status of creditors could be validly accorded the These contracts are binding, unless they are annulled by a
said right? YES. But not in this case. Bonnevies for they had substantial interests that were prejudiced by proper action in court. They are susceptible of ratification.
the sale of the subject property to the petitioner without recognizing
The acquisition by Rosencor of the property subject of the right of Rescission distinguished from Annulment
their right of rst priority under the Contract of Lease.
rst refusal is an obstacle to the action for its rescission where, as in
this case, it was shown that Rosencor is in lawful possession of the Rescission Annulment
subject of the contract and that it did not act in bad faith. (Art 1385)
Ada v. Baylon 2012 Basis is lesion Basis is vitiated consent or
Respondents’ remedy is not an action for the rescission of the Deed incapacity to consent
of Absolute Sale but an action for damages against the heirs of the The rescission of a contract under Article 1381(4) only requires the
spouses Tiangco for the unjusti ed disregard of their right of rst concurrence of the following: Defect is external or intrinsic Defect is intrinsic
refusal.
1) first, the defendant, during the pendency of the case, enters
Subsidiary action Principal action
into a contract which refers to the thing subject of litigation;
and Remedy Sanction
Khe Hong Cheng v. CA
2) second, the said contract was entered into without the
Private interest governs Public interest governs
When did the four (4) year prescriptive period as provided for in knowledge and approval of the litigants or of a competent
Article 1389 for Philam to file its action for rescission of the subject judicial authority. Equity predominates Law predominates
deeds of donation commence to run?
Rescission under Article 1381(4) is not preconditioned upon the
Plainti may be a party or third Plainti must be a party whether
Philam only learned about the unlawful conveyances made by Khe judicial determination as to the ownership of the thing subject of
person bound principally or subsidiarily
Hong Cheng in January 1997. There they found that he no longer litigation.
had any properties in his name. It was only then that respondent There must be damage to Damage to plainti immaterial
Philam's action for rescission of the deeds of donation accrued plainti
6 Voidable contracts
because then it could be said that Philam had exhausted all legal
means to satisfy the trial court's judgment in its favor. ART 1390. The following contracts are voidable or annullable, If plainti indemni ed, cannot Indemnity is no bar to action
even though there may have been no damage to the prosper
contracting parties:
Compatible with the perfect A defect is presupposed
Guzman, Bocaling and Co., Inc. v. Bonnevie 1) Those where ONE of the parties is incapable of validity of contract
The respondent court correctly held that the Contract of Sale was giving consent to a contract;
Rati cation is NOT required to Rati cation required to prevent
not voidable but rescissible. Under Article 1380 to 1381(3) of the 2) Those where the consent is vitiated by mistake,
prevent rescission annulment
Civil Code, a contract otherwise valid may nonetheless be violence, intimidation, undue in uence or fraud.
subsequently rescinded by reason of injury to third persons, Prescriptive Period (Art 1391)

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The action for annulment shall be brought within four years. This ART 1399. When the defect of the contract consists in the c) An agreement made in consideration of
period shall begin: incapacity of one of the parties, the incapacitated person is marriage, other than a mutual promise to marry;
not obliged to make any restitution d) An agreement for the sale of goods, chattels or
Ground From the time things in action, at a price not less than ve
Exception to the exception
hundred pesos, unless the buyer accept and
In cases of intimidation, violence the defect of the consent ceases except insofar as he has been bene ted by the thing or price
receive part of such goods and chattels, or the
or undue in uence received by him.
evidences, or some of them, of such things in
In case of mistake or fraud of discovery of same action or pay at the time some part of the
7 Unenforceable contracts purchase money; xxxx;
Entered into by minors or other the guardianship ceases
Kinds of Unenforceable Contracts e) An agreement for the leasing for a longer
incapacitated persons
a) Unauthorized contracts; period than one year, or for the sale of real
Ratification; Effects property or of an interest therein;
b) Those that fail to comply with the Statute of Frauds;
a) The action to annul is extinguished (Art 1392); f) A representation as to the credit of a third
c) Those where BOTH parties are incapable of giving consent to
person.
b) Cleanses the contract from all its defects from the moment it a contract.
was constituted. (Art 1396) 3) Those where BOTH parties are incapable of
ART 1403. The following contracts are unenforceable, unless giving consent to a contract.
Ratification; Requisites they are rati ed:
General Rules of Application Concerning Statute of Frauds
1) The contract must be voidable; 1) Those entered into in the name of another person by
one 1) Applies only to executory contracts where no performance
2) The person ratifying must know the reason for the contract
has yet been made.
being voidable; a) who has been given no authority or legal
representation, or 2) Cannot apply if the action is neither
3) The cause must not exist or continue to exist anymore at the
time of rati cation; b) who has acted beyond his powers; a) for damages because of the violations of an agreement
nor
4) Must have been made expressly or by an act implying a 2) Those that do not comply with the Statute of
waiver of the action to annul; Frauds as set forth in this number. xxxx: b) for the speci c performance of said agreement.

5) The person ratifying must be the injured party. a) An agreement that by its terms is not to be 3) Exclusive — applies only to the agreements or contracts
performed within a year from the making enumerated above.
There Must be Mutual Restitution, Except
thereof; 4) The defense of the Statute of Frauds may be waived.
b) A special promise to answer for the debt,
default, or miscarriage of another;

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5) A personal defense — a contract infringing it cannot be 8 Void or inexistent contracts parties directly a ected
assailed by third persons. (Art 1408)
Voidable distinguished from Void Contracts Enumeration of Void Contracts
6) Concerns itself with the admissibility of evidence and not its
credibility or weight. Voidable Void ART 1409. The following contracts are inexistent and void
from the beginning:
7) Does not apply if it is claimed that the contract does not
May be rati ed Cannot be rati ed
express the true agreement of the parties. 1) Those whose cause, object or purpose is contrary to
Produces e ects until annulled Generally, e ects are not law, morals, good customs, public order or public
Ratification of Contracts Infringing the Statute of Frauds (Art
produced at all policy;
1405
2) Those which are absolutely simulated or ctitious;
a) By the failure to object to the presentation of oral evidence to Defect is due to incapacity or Ordinarily, public policy is
prove the same, or vitiated consent militated against 3) Those whose cause or object did not exist at the
time of the transaction;
b) By the acceptance of bene t under them.
Valid until annulled Generally, no action required to
4) Those whose object is outside the commerce of
set aside, unless has already been
Rosencor Development Corporation v. Inquing, et al men;
performed
5) Those which contemplate an impossible service;
A right of rst refusal is NOT among those listed as unenforceable
May be cured by prescription Cannot be cured by prescription
under the statute of frauds. 6) Those where the intention of the parties relative to
Defense may be invoked only by Defense may be availed of by the principal object of the contract cannot be
the parties or their successors in anybody whose interest is ascertained;
Carbonell v. Poncio interest and privies directly a ected (Art 1421) 7) Those expressly prohibited or declared void by law.

The Statute of Frauds is applicable only to executory contracts, not Relative or conditional nullity Absolute nullity These contracts cannot be rati ed. Neither can the right to set
to contracts that are totally or partially performed. up the defense of illegality be waived.
Unenforceable distinguished from Void Contracts
Lone Instance Where Recovery Can Be
Unenforceable Void Had Even in the Presence of Pari Delicto
Western Mindanao Lumber Co. v. Medalle
ART 1414. When money is paid or property delivered for an
May be rati ed Cannot be rati ed
An agreement creating an easement of right-of-way is NOT one of illegal purpose, the contract may be repudiated by one of the
those contracts covered by the statute of frauds since it is not a sale of There is a contract but cannot No contract at all parties
real property or of an interest therein. be enforced by a court action a) before the purpose has been accomplished, or

Cannot be assailed by third Can be assailed by anybody b) before any damage has been caused to a third person.

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In such case, the courts may, if the public interest will thus be
subserved, allow the party repudiating the contract to recover
the money or property.
Contracts Merely Prohibited
1. Those forbidden because of private interests, as opposed to
those that are illegal per se that are forbidden due to public
interests.
2. Recovery is permitted, provided that:
a) The contract is not illegal per se;
b) The prohibition is designed for the protection of the
plainti ; and
c) Public policy would be enhanced by allowing the
recovery.
Marin v. Adil
It is evident from the deed of exchange that the intention of the
parties relative to the lots, which are the objects of the exchange,
cannot be de nitely ascertained. We hold that this circumstance
renders the exchange VOID or inexistent. The instant rescissory
action may be treated as an action to declare void the deed of
exchange.
Razon, Inc. v. PPA
The transfer of the control of petitioner E. Razon, Inc. from
petitioner Enrique Razon to Alfredo “Bejo” Romualdez, which We
have resolved to be null and void, served as the direct link to
petitioner company's obtaining the Management Contract. Being
Reviewer
the direct consequence and result of a previous illegal contract, the
Management Contract itself is null and void as provided in Article
1422 of the Civil Code.
Homena v. Casa
The plainti s’ supposed cause of action rests upon the deed of sale
executed by defendants in their favor wherein the latter sold a
two-hectare portion of the homestead which they were applying for
to the plainti s on the understanding that the actual conveyance of
the said portion to plainti s would be made only after the lapse of
the ve-year period during which, under the Public Land Act, the
homestead owner was prohibited from transferring his rights. The
agreement is clearly illegal and void ab initio; it is intended to
circumvent and violate the law. As parties to a void contract, the
plainti s have no rights which they can enforce and the court can not
lend itself to its enforcement.
Sps Abella v. Sps Abella 2015
The imposition of an unconscionable interest rate is void ab initio
for being "contrary to morals, and the law."
Sps Jonsay, et al. v. Solidbank Bank Corp 2016
An escalation clause in a loan agreement granting the lending bank
authority to unilaterally increase the interest rate without prior
notice to and consent of the borrower is VOID.
By RGL
for the 2022 Bar
Peña v. Delos Santos, et al 2016
The judicial action over the subject lots was still in the appellate
proceedings stage when they were conveyed to Jesus and Rosita's
counsel, Atty. Robiso.
Under Article 1409, contracts which are expressly prohibited or
declared void by law are considered inexistent and void from the
beginning. There is no need to bring a separate action for the
declaration of the subject deeds of conveyance as void.
Guillermo, et al. v. PIA 2017
The Administrative Code of 1987 expressly prohibits the entering
into contracts involving the expenditure of public funds unless two
prior requirements are satis ed. First, there must be an
appropriation law authorizing the expenditure required in the
contract. Second, there must be attached to the contract a
certi cation by the proper accounting o cial and auditor that funds
have been appropriated by law and such funds are available. Failure
to comply with any of these two requirements renders the contract
VOID.
C Natural Obligations
1. Natural obligations, not being based on positive law but
on equity and natural law, do not grant a right of action to
enforce their performance, but after voluntary ful llment by
the obligor, they authorize the retention of what has been
delivered or rendered by reason thereof. (Art 1423)
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2. Voluntary fulfillment means that the debtor complied with
the same even if he knew that he could not have been legally
forced to do so.
3. Natural Obligations in Wills and Succession:
a. When a testate or intestate heir voluntarily pays a debt of
the decedent exceeding the value of the property which he
received by will or by the law of intestacy from the estate
of the deceased, the payment is valid and cannot be
rescinded by the payer. (Art 1429)
b. When a will is declared void because it has not been
executed in accordance with the formalities required by
law, but one of the intestate heirs, after the settlement of
the debts of the deceased, pays a legacy in compliance with
a clause in the defective will, the payment is e ective and
irrevocable. (Art 1430)
D Estoppel
1. Estoppel is a bar which precludes a person from denying or
asserting anything to the contrary of that which has, in
contemplation of law, been established as the truth, either by
the acts of judicial or legislative o cers or by his own deed or
representation, either expressed or implied.
2. May be in pais or by deed (Art 1433).
3. Estoppel in pais or Equitable Estoppel arises when one,
by his
a. acts,
b. representations or admissions, or
c. by his silence when he ought to speak out,
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intentionally or through culpable negligence, induces another
to believe certain facts to exist, and such other rightfully relies
and acts on such belief, so that he will be prejudiced if the
former is permitted to deny the existence of such facts.
4. Estoppel by laches or the unreasonable delay in bringing a
court action requires four elements
a. conduct on the part of the defendant, or of one
under whom he claims, giving rise to the situation of
which complaint is made and for which the complaint
seeks a remedy;
b. delay in asserting the complainant's rights, the
complainant having had knowledge or notice of the
defendant's conduct and having been a orded an
opportunity to institute a suit;
c. lack of knowledge or notice on the part of the
defendant that the complainant would assert the right
on which he bases his suit; and
d. injury or prejudice to the defendant in the event
relief is accorded to the complainant, or the suit is not
held to be barred.
5. Estoppel by deed or Technical Estoppel is a bar which
precludes a party to a deed and his privies from asserting as
against the other and his privies any right or title in derogation
of the deed, or from denying the truth of any material fact
asserted in it.
6. Sale of After-acquired Property. When a person who is
not the owner of a thing sells or alienates and delivers it, and
later the seller or grantor acquires title thereto, such title passes
by operation of law to the buyer or grantee. (Art 1434)
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7. Estoppel by Record. Only applies as between the same parties
or their privies and can neither be used against strangers.
Estoppel by record, to the extent that they bind parties, will
also bind their privies; but they can exist only as between
the same parties or those in legal privity with them, and can
be used neither by nor against strangers. (Beltran v. Escudero)
8. Agency by Estoppel. For an agency by estoppel to exist, the
following must be established:
1) the principal manifested a representation of the
agent's authority or knowingly allowed the agent to
assume such authority;
2) the third person, in good faith, relied upon such
representation;
3) relying upon such representation, such third person
has changed his position to his detriment.
An agency by estoppel, which is similar to the doctrine of
apparent authority, requires proof of reliance upon the
representations, and that, in turn, needs proof that the
representations predated the action taken in reliance.
(Litonjua, Jr. v. Eternit Corporation)
E Trusts
1. Trust is the right to the bene cial enjoyment of property, the
legal title to which is vested in another.
It is a fiduciary relationship concerning property which obliges
the person
2. Trusts are either express or implied.
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a. Express trusts are created by the intention of the trustor
or of the parties.
b. Implied trusts come into being by operation of law. (Art
1441) There are two kinds:
i. Resulting trust — There is an intent to create a
trust but it is not e ective as an express trust.
ii. Constructive trust — No intention to create a
trust is present. i.e.
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 1456)
3. Instances of Implied Trust
a. When property is sold, and the legal estate is granted to
one party but the price is paid by another for the purpose
of having the bene cial interest of the property. (Art
1448) [Resulting Trust]
However, if the person to whom the title is conveyed is a
child, legitimate or illegitimate, of the one paying the price
of the sale, no trust is implied by law, it being disputably
4. How Trust be Proven
presumed that there is a gift in favor of the child.
b. When a donation is made to a person but it appears that
although the legal estate is transmitted to the donee, he
nevertheless is either to have no bene cial interest or only
a part thereof. (Art 1449) [Resulting Trust]
5. Prescription of Trusts
c. If the price of a sale of property is loaned or paid by one
person for the bene t of another and the conveyance is
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made to the lender or payor to secure the payment of the
debt. (Art 1450) [Constructive Trust]
d. When land passes by succession to any person and he
causes the legal title to be put in the name of another. (Art
1451) [Resulting Trust]
e. 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 bene t of all. (Art 1452) [Resulting Trust]
f. 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. (Art 1453) [Resulting Trust]
g. If an absolute conveyance of property is made in order to
secure the performance of an obligation of the grantor
toward the grantee. (Art 1454) [Constructive Trust]
h. When any trustee, guardian or other person holding a
duciary relationship uses trust funds for the purchase of
property and causes the conveyance to be made to him or
to a third person. (Art 1455) [Constructive Trust]
i. If property is acquired through mistake or fraud. (Art
1456) [Constructive Trust]
a. No express trusts concerning an immovable or any interest
therein may be proved by parol evidence. (Art 1443)
b. An implied trust may be proved by oral evidence. (Art
1457)
a. Express trusts are IMPRESCRIPTIBLE unless there has
been repudiation of the trust.
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The same rule applies for Resulting trusts.
b. Constructive trusts do prescribe.
F Quasi-Contracts
Quasi-contracts are lawful, voluntary, and unilateral acts
which generally require a person to reimburse or compensate
another in accordance with the principle that no one shall be
unjustly enriched or bene ted at the expense of another.
Unjust Enrichment
For the rule on unjust enrichment to apply, two conditions must
concur:
1) A person is unjustly bene ted; and
2) Such bene t is derived at another’s expense or damage.
Included in the Concept of Implied Contracts
Quasi-contracts fall within the concept of implied contracts that
must be included in the claims required to be led with the judicial
settlement of the deceased’s estate under Section 5, Rule 86 of the
Rules of Court. (MBTC v. Absolute Management 2013)
A. Negotiorum Gestio
ART 2144. Whoever voluntarily takes charge of the agency or
management of the business or property of another, without
any power from the latter, is obliged to continue the same
until the termination of the a air and its incidents, or to
require the person concerned to substitute him, if the owner is
in a position to do so. xxxx
Essential Requisites
1) No meeting of the minds;
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2) Taking charge of another’s business or property;
3) The property or business must have been abandoned or
neglected;
Otherwise, the rule on unauthorized contracts would apply.
4) The o cious manager must NOT have been expressly or
implicitly authorized;
Otherwise, the rules on agency would apply.
5) The o cious manager must have voluntarily taken charge.
Notes
1. The o cious manager shall perform his duties with all the
diligence of a good father of a family. (Art 2145)
GR: The responsibility of two or more o cious managers
shall be solidary
EXC: Unless the management was assumed to save the thing
or business from imminent danger. (Art 2146)
2. The rati cation of the management by the owner of the
business produces the e ects of an express agency, even if
the business may not have been successful. (Art 2149)
3. Generally, the owner should have been bene ted for him to be
liable to the gestor. There are instances when there is still
liability even if there have been no bene t derived:
a. When the management had for its purpose the prevention
of an imminent and manifest loss; (Art 2150 par 2) and
b. Even though there has been no imminent and manifest
danger to the property or business:
i. The o cious manager has acted in good faith,
and
Reviewer
ii. The property or business is intact, ready to be
returned to the owner. (Art 2151)
Liability for Fortuitous Events
The o cious manager shall be liable for any fortuitous event:
1) If he undertakes risky operations which the owner was not
accustomed to embark upon;
2) If he has preferred his own interest to that of the owner;
3) If he fails to return the property or business after demand by
the owner;
4) If he assumed the management in bad faith; (Art 2147)
5) If he is manifestly un t to carry on the management;
6) If by his intervention he prevented a more competent person
from taking up the management.
For 5 and 6, except when the management was assumed to
save property or business from imminent danger. (Art 2148)
Extinguishment of Officious Management
1) When the owner repudiates it or puts an end thereto;
2) When the o cious manager withdraws from the
management;
3) By the death, civil interdiction, insanity or insolvency of
the owner or the o cious manager.
B. Solutio Indebiti
Solutio indebiti is the quasi-contract that arises when a person
is obliged to return whatever was received by him through error or
mistake or received by him although there was no right to demand
it.
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The responsibility of two or more payees is solidary. (Art 2157)
If payee is in bad faith, he shall be liable for interests, or fruits and
for fortuitous events. (Art 2159)
Essential Requisites
1) Receipt of something;
2) There was no right to demand it; (Art 2154)
3) The undue delivery was because of mistake, either of fact, or of
law, which may be doubtful or di cult. (Art 2155)
Liability of a Payee in Good Faith
a) In case of impairment or loss — only to the extent of bene t;
b) In case of alienation — price to be reimbursed;
c) In case of credit — the same should be assigned
When Mistake Presumed
ART 2163. It is presumed that there was a mistake in the
payment if something which had never been due or had
already been paid was delivered; but he from whom the return
is claimed may prove that the delivery was made out of
liberality or for any other just cause.
V Sales
Nature and Form
Essential requisites
Perfection
Contract of sale v. Contract to sell
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Capacity to buy or sell e) Principal; 3. Goods may be existing or future goods. Future goods are
E ects of the contract when the thing sold has been lost those still to be
f) Nominate;
Obligations of Vendor a. Manufactured or printed;
g) Title and not Mode — A mode is the legal means by which
Obligations of Vendee dominion or ownership is created, transferred or destroyed, b. Raised, or future agricultural products;
but title is only the legal basis by which to a ect dominion or
c. Acquired by seller after perfection of contract, or
Breach of Contract ownership. Sale by itself does not transfer or a ect ownership;
after-acquired property;
Remedies the most that sale does is to create the obligation to transfer
ownership. It is tradition (delivery as a consequence of sale) d. Things whose acquisition depends upon a
Recto Law and Maceda Law contingency that may or may not happen. (Art 1462)
that actually transfers ownership. [San Lorenzo Dev. Corp. v.
Extinguishment CA] 4. An undivided interest in a thing may be sold by the sole
In general 1 Essential requisites owner which results in a co-ownership. (Art 1463)
The full owner may sell the usufruct of his land, leaving the
Pacto de retro sale 1) Consent or Meeting of the Minds;
naked ownership to himself.
Equitable mortgage 2) Determinate subject matter; 5. Things subject to a resolutory condition may be the object of
Assignment of Credits 3) Price certain in money or its equivalent. the contract of sale. (Art 1465)

Provisions as to Subject Matter Provisions as to Price

A Nature and Form
1. The thing must be licit and the vendor must have a right to 1. If the consideration of the contract consists partly in money,
ART 1458. By the contract of sale one of the contracting transfer the ownership thereof at the time it is delivered. (Art and partly in another thing, the transaction shall be
parties obligates himself to transfer the ownership and to 1459) characterized by the manifest intention of the parties.
deliver a determinate thing, and the other to pay therefor a If such intention does not clearly appear, it shall be considered
The seller must be the owner of the subject sold. Nemo dat
price certain in money or its equivalent. a barter if the value of the thing exceeds the amount of the
quod non habet. But the seller only needs to be the owner
A contract of sale may be absolute or conditional. upon delivery, and not necessarily upon perfection of the money or its equivalent; otherwise, it is a sale. (Art 1468)

Essential Characteristics contract of sale. 2. Gross inadequacy of price does not a ect a contract of sale,
2. A thing is determinate if at the time the contract is entered except as it may indicate a defect in the consent, or that the
a) Consensual;
into, the thing is capable of being made determinate without parties really intended a donation or some other act or
b) Bilateral reciprocal; the necessity of a new or further agreement between the contract. (Art 1470)
c) Onerous; parties. (Art 1460) 3. If the price is simulated, the sale is VOID, but the act may be
d) Generally, commutative; shown to have been in reality a donation, or some other act or
contract. (Art 1471)

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4. The xing of the price can never be left to the discretion of one
of the contracting parties. However, if the price xed by one of
the parties is accepted by the other, the sale is perfected. (Art
1473)
5. Where the price cannot be determined, the contract is
inefficacious. However, if the thing or any part thereof has
been delivered to and appropriated by the buyer he must pay a
reasonable price therefor. (Art 1474)
2 Perfection
1) Sale is perfected at the moment there is a meeting of minds
upon the thing which is the object of the contract and upon
the price. From that moment, the parties may reciprocally
demand performance subject to the law governing the form of
contracts.
2) Mutual consent may only be inferred from the con uence of
two acts of the parties:
a) an o er certain as to the object of the contract and its
consideration, and
b) an acceptance of the o er which is absolute in that it
refers to the exact object and consideration embodied
in said o er.
3) Sale by Auction. Owner’s terms and conditions for the sale
of property under auction are binding on all bidders, whether
or not they knew of them.
An auction sale is perfected by the fall of the hammer or in
other customary manner and it does not matter that another
was allowed to match the bid of the highest bidder. [Province
of Cebu v. Heirs of Rufina Morales]
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4) Earnest Money in Art 1482. Earnest money given by the
buyer shall be considered as part of the price and as proof of
the perfection of the contract. It constitutes an advance
payment to be deducted from the total price.
In a potential sale transaction, prior payment of earnest money
even before the owner can agree to sell his property is irregular,
and cannot be used to bind the owner to the obligations of a
seller under an otherwise perfected contract of sale. Property
owner/prospective seller may not be legally obliged to enter
into a sale with a prospective buyer through the latter's
employment of questionable practices which prevent the
owner from freely giving his consent to the transaction. [First
Optima Realty Corp. v. Securitron Security Services 2015]
Where parties merely exchanged o ers and counter-o ers,
there being no perfection of a contract of sale yet, money given
as deposit cannot be considered earnest money since such term
applies only to a perfected sale. [Starbright Sales Enterprises v.
Philippine Realty Corp. 2012]
3 Contract of sale v. Contract to sell
1) In a contract of sale, title to the property passes to buyer
upon the delivery of the thing sold;
In a contract to sell, ownership is, by agreement, reserved in
the seller and is not to pass to the buyer until full payment of
purchase price.
2) In the latter contract, payment of the price is a positive
suspensive condition, failure of which is not a breach but an
event that prevents the obligation of the vendor to convey title
from becoming e ective.
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3) A contract of sale may either be absolute or conditional. One
form of conditional sales is a “Contract to Sell.”
4) A Contract to Sell is perfected at the moment there is a
meeting of minds upon the thing which is the object of the
contract and upon the price. It also undergoes the three stages
of a contract: negotiation, perfection and consummation.
[Robern Dev. Corp. v. People’s Landless Assn. 2013]
5) In a contract to sell, the ful llment of the suspensive
condition will NOT automatically transfer ownership to
the buyer although the property may have been previously
delivered to him. The prospective seller still has to convey title
to the prospective buyer by entering into a contract of absolute
sale.
On the other hand, in a conditional contract of sale, the
ful llment of the suspensive condition renders the sale
absolute and the previous delivery of the property has the
e ect of automatically transferring the seller’s ownership or
title to the property to the buyer. [Ventura v. Heirs of Spouses
Endaya 2013]
6) In contracts of sale, the seller loses ownership over the
property and cannot recover it until and unless the contract is
resolved or rescinded;
In a contract to sell, title is retained by the seller until full
payment of the price. [Montecalvo v. Heirs of Eugenia Primero
2010]
7) In a contract to sell, the prospective seller explicitly reserves
the transfer of title to the prospective buyer, meaning, the
prospective seller does not as yet agree or consent to transfer
ownership of the property subject of the contract to sell until
the happening of an event, which for present purposes we shall
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take as the full payment of the purchase price. [Republic v.
Marawi-Marantao General Hospital 2012].
8) The failure of the prospective buyer to make full payment
and/or abide by his commitments stated in the contract to sell
prevents the obligation of the prospective seller to execute the
corresponding deed of sale to e ect the transfer of ownership
to the buyer from arising. [Ventura v. Heirs of Spouses Endaya
2013]
9) Remedy of Rescission Does Not Apply to Contracts to
Sell. The remedy of rescission under Article 1191 of the Civil
Code cannot apply to mere contracts to sell.
10) The seller’s obligation to deliver the corresponding certi cates
of title is simultaneous and reciprocal to the buyer’s full
payment of the purchase price. [Gotesco Properties v. Fajardo
2013].
11) Essential Stipulations to Constitute a Contract to Sell –
A contract is one of sale, absent any stipulation therein
a) reserving title over the property to the vendee until
full payment of the purchase price, and
b) giving the vendor the right to unilaterally rescind the
contract in case of non-payment.
C has been made or not, except that:
12) Substantial Breach (Arts. 1191 and 1234) – Concept of
substantial breach is irrelevant in contracts to sell.
Loss of Object Before Sale
B Capacity to buy or sell
1. Sales by and between Spouses. Under Art. 124 of Family
Code, sale by husband of a conjugal property without the
wife’s consent is VOID, not merely voidable, since the
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resulting contract lacks one of the essential elements of “full
consent”. [Guiang v. CA]
The in pari delicto doctrine would not apply to the
spouses-parties under Art. 1490, since only the heirs and the
creditors can question the sale’s nullity [Modina v. CA];
nevertheless, when the property is re-sold to a third-party
buyer in good faith and for value, reconveyance is no longer
available. [Cruz v. CA]
There are two instances under Art 1490 that spouses can sell
property to each other:
1) When a separation of property was agreed upon in
the marriage settlements; or
2) When there has been a judicial separation of
property.
2. Relative Incapacity under Art 1491. Contracts entered
into in violation of Arts. 1491 and 1492 are not merely
voidable, but are NULL AND VOID.
The relative prohibition applies to sales in legal redemption,
compromises and renunciations. (Art 1492)
E ects of the contract when the thing
sold has been lost
ART 1493. If at the time the contract of sale is perfected, the
thing which is the object of the contract has been entirely
lost, the contract shall be without any e ect.
But if the thing should have been lost in part only, the
vendee may choose between
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a) Rescission — withdrawing from the contract and
b) Specific Performance — demanding the remaining
part, paying its price in proportion to the total sum
agreed upon
Loss of Specific Goods
ART 1494. Where the parties purport a sale of speci c goods,
and the goods without the knowledge of the seller have
perished in part or have wholly or in a material part so
deteriorated in quality as to be substantially changed in
character, the buyer may at his option treat the sale:
1) As avoided; or
2) As valid in all of the existing goods or in so much
thereof as have not deteriorated, and as binding the
buyer to pay the agreed price for the goods in which
the ownership will pass, if the sale was divisible.
Risk of Loss
ART 1504. Unless otherwise agreed, the goods remain at the
seller's risk until the ownership therein is transferred to the
buyer, but when the ownership therein is transferred to the
buyer the goods are at the buyer's risk whether actual delivery
1) Where delivery of the goods has been made to the
buyer or to a bailee for the buyer, in pursuance of the
contract and the ownership in the goods has been
retained by the seller merely to secure performance
by the buyer of his obligations under the contract, the
goods are at the buyer's risk from the time of such
delivery;
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2) Where actual delivery has been delayed through the
fault of either the buyer or seller the goods are at the
risk of the party in fault.
Notes on Delivery
D Obligations of Vendor
a) To transfer ownership;
b) To deliver with fruits and accessories;
c) To warrant the object sold; (waivable since this is not an
essential element)
d) To preserve the thing from perfection to delivery, otherwise
he can be held liable for damages.
Transfer of ownership
Kinds of Delivery or Tradition
ART 1477. The ownership of the thing sold shall be transferred
to the vendee upon the actual or constructive delivery
thereof.
ART 1478. The parties may stipulate that ownership in the
thing shall not pass to the purchaser until he has fully paid
the price.
Notes on Tradition Doctrines
1. Nemo Dat Quod Non Habet — “No man can give that
which he does not have.” Even when the sale is valid, if the seller
had no ownership over the subject matter at the time of
delivery, no valid title can pass in favor of the buyer.
A contract to sell, or a conditional contract of sale where the
suspensive condition has not happened, even when found in a
public document, cannot be treated as constituting
constructive delivery, especially when from the face of the
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instrument it is shown that the seller “was not yet the owner
of the property and was only expecting to inherit it.”
[Heirs of Arturo Reyes v. Socco-Beltran]
1. Delivery contemplates the absolute giving up of the control
and custody of the property on the part of the vendor, and the
assumption of the same by the vendee.
2. “Delivery” in sales refers to the concurrent transfer of two
things: possession AND ownership.
If the vendee is placed in actual possession of the property, but
by agreement of the parties ownership of the same is retained
until the vendee has fully paid the price, there was no delivery.
[Cebu Winland Dev. Corp. v. Ong Siao Hua]
1) Actual or real — when the thing sold is placed in the control
and possession of the vendee. (Art 1497)
2) Constructive or legal —
Special Rules on Completeness of Delivery
a) Legal formalities — execution of public instrument is
deemed delivery. (Art 1498 par 1);
b) Tradition simbolica — delivery of the keys of the place
or depository where movable property is stored or kept.
(Art 1498 par 2);
c) Traditio longa manu — by the mere consent or
agreement of the contracting parties, if the thing sold
cannot be transferred to the possession of the vendee at
the time of the sale. (Art 1499);
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d) Traditio brevi manu — if the buyer already had the
possession of the object even before the purchase. (Art
1499);
e) Traditio constitutum possessorium — possession as
owner changed to possession as a lessee, for example.
3) Quasi-tradition — delivery of rights, credits, or
incorporeal property, made by:
a) placing of the titles of ownership in the possession of the
vendee or
b) the use by the vendee of his rights, with the vendor's
consent. (Art 1501)
In the sale of shares of stock, delivery of a stock certi cate is
one of the essential requisites for the transfer of ownership of
the stocks purchased. Seller’s failure to deliver the stock
certi cates representing the shares of stock amounted to a
substantial breach which gave rise to a right to rescind the
sale. [Raquel-Santos v. CA]
1. In Case of Movables (Arts 1522 and 1537, 1480)
a. Sale on Approval, Trial or Satisfaction (Art 1502)
In a “sale or return,” the ownership passes to the buyer
on delivery pursuant to a perfected contract of sale; and
the subsequent return of the goods reverts ownership
back to the seller. In such case, tradition as a mode of
acquiring ownership must be in consequence of a
contract.
In a “sale on approval” (also called “sale on acceptance,
“sale on trial” or “sale on satisfaction”), the delivery of the
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object does not transfer ownership to the buyer since the
2. Express Warranty. A warranty is a statement or
delivery was not for purposes of transferring ownership,
since the prestation to e ect a meeting of the minds to
give rise to a valid contract is incumbent on the buyer.
b. Sale by Description and/or Sample (Art 1481)
There is a sale by sample
a) when a small quantity is exhibited by the seller as
a fair specimen of the bulk,
b) which is not present and there is no opportunity
to inspect or examine the same; and
c) the parties treated the sample as the standard of
quality and
d) that they contracted with reference to the sample
e) with the understanding that the product to be
delivered would correspond with the sample.
3. Implied Warranties
Warranties
1. Conditions. Failure to comply with condition imposed upon
perfection of the contract results in failure of a contract,
while the failure to comply with a condition imposed on the
performance of an obligation only gives the other party the
option either to refuse to proceed with sale or waive the
condition. [Laforteza v. Machuca]
The condition in the contract of sale of buyer’s assumption of
the mortgage constituted on the subject matter is deemed
ful lled when the seller prevented its fulfillment by paying his
outstanding obligation to the bank and taking back the
certi cates of title without even notifying the buyer. [De Leon
v. Ong 2010]
Reviewer
representation made by the seller of goods,
contemporaneously and as part of the contract of sale, having
reference to the character, quality or title of the goods, and by
which he promises or undertakes to insure that certain facts
are or shall be as he then represents them. [Ang v. CA]
Breach of an express warranty makes seller liable for damages.
The following requisites essential to establish an express
warranty:
a. it must be an a rmation of fact or any promise by the
seller relating to the subject matter of the sale;
b. natural tendency of such a rmation or promise is to
induce the buyer to purchase the thing; and
c. buyer purchases the thing relying on such a rmation or
promise thereon. [Carrascoso, Jr. v. CA]
a. That seller has the right to sell;
b. Against Eviction (Arts 1548 - 1560)
Seller must be summoned in the suit for eviction at the
instance of the buyer (Art 1558), and be made a
co-defendant or a third-party defendant (Art 1559)
A dacion en pago is governed by the law of sales, and
contracts of sale come with warranties, either express or
implied. The implied warranty in case of eviction is
waivable and cannot be invoked if the buyer knew of the
risks or danger of eviction and assumed its consequences.
[Luzon Dev. Bank v. Enriquez 2011]
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for the 2022 Bar
No Warranty Against Eviction When Execution
Sale — In voluntary sales, vendor can be expected to
defend his title because of his warranty to the vendees but
no such obligation is owed by the owner whose land is
sold at execution sale. [Santiago Land Dev. Corp. v. CA]
However, under Art 1552, the judgment debtor is also
responsible for eviction in judicial sales, unless it is
otherwise decreed in the judgment. Also in Art 1570, the
judgment debtor in judicial sales shall not be liable for
damages in view of the compulsory nature of the sales.
The prescriptive period to le a breach thereof is six (6)
months after the delivery. Mere noti cation not
su cient.
A breach of this warranty requires the concurrence of the
following circumstances:
1) The purchaser has been deprived of the whole or
part of the thing sold;
2) This eviction is by a nal judgment;
3) The basis thereof is by virtue of a right prior to
the sale made by the vendor; and
4) The vendor has been summoned and made
co-defendant in the suit for eviction at the
instance of the vendee.
c. Against Non-Apparent Servitudes (Art 1560)
Remedy is rescission + damages if made within one year
from execution of deed.
But if one year has already lapsed, remedy is only for
damages.
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d. Against Hidden Defects (Arts 1561, 1566-1580)
Requisites to recover because of Hidden Defects:
1) Defect must:
a) be hidden;
b) exist at perfection of contract;
c) ordinarily have been excluded from the
contract; and
d) be important to render the thing un t or
considerably decreases tness; and
2) Action must be instituted within the statute of
limitations.
Redhibitory Defect — a defect that renders a thing
useless or so diminishes its usefulness or value that it must
be presumed that the buyer would not have bought it or
would have paid a lesser price if aware of the defect.
Remedies:
1) Withdrawal or rescission (accion redhibitoria)
+ damages;
Prescriptive period generally 6 months from
delivery except if involving defects of animals, 40
days.
2) Proportionate reduction in the price (accion
quanti minoris) + damages.
3) If due to the hidden defect the thing sold should
be lost:
a) If seller aware — Return the price + refund
expenses of contract + damages;
Reviewer
b) If not aware — same except for damages.
e. As to Fitness or Quality of Goods (Arts 1562, 1565,
1599)
In order to enforce the implied warranty that the goods
are reasonably t and suitable to be used for the purpose
which both parties contemplated, the following must be
established:
1) that the buyer sustained injury because of the
product;
2) that the injury occurred because the product was
defective or unreasonably unsafe; and nally
3) the defect existed when the product left the
hands of the petitioner.
E Obligations of Vendee
Merchantable Quality — Fit for the general purpose of
a thing, and not necessarily the particular purpose for
which it has been acquired.
f. Sale of Goods by Sample (Art 1565) — there is a
warranty of merchantability.
g. Additional Warranties for Consumer Products in
RA 7394
Warranties in Supply of Services. —
a) There is an implied warranty that the service will
be rendered with due care and skill.
b) Where the consumer, expressly or by implication,
makes known to the seller the particular purpose
for which the services are required, there is an
implied warranty that the services will be
reasonably t for that purpose.
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for the 2022 Bar
4. Effects and Prescription of Warranties (Art 1599) – A
breach in the warranties of the seller entitles the buyer to a
proportionate reduction of the purchase price. [PNB v.
Mega Prime Realty and Holding Corp.]
The prescriptive period for instituting actions based on a
breach of
a) express warranty is that speci ed in the contract,
and in the absence of such period, the general rule on
rescission of contract, which is 4 years, while for
b) implied warranty, the prescriptive period is 6
months from the date of the delivery of the thing
sold. [Ang v. CA]
1. Pay the Price (Art 1582)
When seller cannot show title to the subject matter, then he
cannot compel the buyer to pay the price. [Heirs of Severina
San Miguel v. CA]
When Buyer May Suspend the Payment of the Price
a) If there is a well-grounded fear.
b) The fear is because of:
i) A vindicatory action or action to recover, or
ii) A foreclosure of mortgage. (Art 1590)
2. Accept Delivery of the Subject Matter (Arts 1582-1585)
a. Buyer’s Right to Inspect Before Acceptance (Arts
1481 and 1584[1]);
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EXC: When Carrier Delivers under COD Terms
b. When Buyer Refuses to Accept (Art 1588) —
Since delivery of subject matter is an obligation on the
part of the seller, the acceptance thereof by the
buyer is not a condition for the completeness of
delivery. [La Fuerza v. CA]
If the refusal is justi ed, the buyer has no duty to
return the goods to the seller; mere notice to seller of
the refusal will su ce. The buyer may make himself a
voluntary depositary. (Art 1587)
c. When There is Acceptance (Art 1585)
i. Express acceptance;
ii. When buyer does an act which only an
owner can do;
iii. Failure to return after a reasonable lapse of
time.
F Breach of Contract
1 Remedies
Remedies of Seller
1. If Buyer Refuses to Pay — maintain an action against buyer for
the price of the goods. (Art 1595)
2. If Buyer Refuses to Accept and Pay — action for damages,
measured as the estimated loss directly and naturally resulting
in the ordinary course of events from the buyer's breach. (Art
1596)
3. When Seller May Totally Rescind — Where
Reviewer for the 2022 Bar
a. the goods have not been delivered to the buyer, and b. Where the goods have been sold on credit, but the term of
credit has expired;
b. the buyer
c. Where the buyer becomes insolvent.
i. has repudiated the contract of sale, or
The seller may exercise his right of lien notwithstanding that
ii. has manifested his inability to perform his obligations
he is in possession of the goods as agent or bailee for the buyer.
thereunder, or
(Art 1527)
iii. has committed a breach thereof. (Art 1597)
The unpaid seller of goods loses his lien thereon:
Unpaid Seller of Goods (Arts 1524-1535)
1) When he delivers the goods to a carrier or other bailee
1. A seller is unpaid for the purpose of transmission to the buyer without
a. When the whole of the price has not been paid or reserving the ownership in the goods or the right to
tendered; the possession thereof;
b. When a bill of exchange or other negotiable instrument 2) When the buyer or his agent lawfully obtains
has been received as conditional payment, and the possession of the goods;
condition on which it was received has been broken by 3) By waiver thereof. (Art 1529)
reason of the dishonor of the instrument, the insolvency
Although possessory lien may be lost, lien is still maintained
of the buyer, or otherwise. (Art 1525)
where the unpaid seller is considered a preferred creditor
2. Rights of an Unpaid Seller with respect to the price of the speci c goods sold.
a. Possessory lien, in the nature of a pledge — while still in 4. Right of Stoppage in Transitu. — available to the unpaid
possession. seller if
b. Right of stoppage in transitu — if seller has parted with a. He has parted with the possession of goods; and
the possession;
b. If the buyer is or becomes insolvent. (Art 1530 par 1)
c. To Resale;
How Exercised
d. To Rescind the sale.
1) Obtaining actual possession;
3. Possessory Lien.
2) Giving notice of the claim. — either to
a. Where the goods have been sold without any stipulation as
a) The person in actual possession; or
to credit;
b) His principal.
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Civil Law and Practical Exercises
The consequential effects are
1) The goods are no longer in transitu;
2) The contract of carriage ends; the carrier now
becomes a bailee;
3) The carrier should not deliver anymore to the buyer;
otherwise, he will be liable for damages;
4) The carrier must deliver to, or according to the
directions of, the seller.
5. Right of Resale.
a. Where the goods are of perishable nature, or
b. where the seller expressly reserves the right of resale in case
the buyer should make default, or
c. where the buyer has been in default in the payment of the
price for an unreasonable time,
an unpaid seller having a right of lien or having stopped the
goods in transitu may resell the goods.
He shall not thereafter be liable to the original buyer upon the
contract of sale or for any pro t made by such resale, but may
recover from the buyer damages for any loss occasioned by the
breach. (Art 1533)
Is notice of an intention to resell essential? NO. But where the
right to resell is not based on the perishable nature of the
goods or upon an express provision of the contract of sale, the
giving or failure to give such notice shall be relevant in any
issue involving the question whether the buyer had been in
default for an unreasonable time before the resale was made.
6. Right to Rescind. Applies in case there has been
Reviewer
a. Express stipulation or reservation;
b. Unreasonable default.
There must be notice to the buyer or there must be an overt
act showing an intention to rescind. (Art 1534)
Remedies of Buyer in case of Breach of Warranty
The buyer may, at his election:
1) Accept or keep the goods and set up against the seller, the
breach of warranty by way of recoupment in diminution or
extinction of the price;
2) Accept or keep the goods and maintain an action against the
seller for damages for the breach of warranty;
3) Refuse to accept the goods, and maintain an action against
the seller for damages for the breach of warranty;
4) Rescind the contract of sale and refuse to receive the goods
or if the goods have already been received, return them or
o er to return them to the seller and recover the price or any
part thereof which has been paid. (Art 1599)
2 Recto Law and Maceda Law
Recto Law (Articles 1484 - 1486)
ART 1484. In a contract of sale of personal property the
price of which is payable in installments, the vendor may
exercise any of the following remedies:
1) Specific Performance — Exact ful llment of the
obligation, should the vendee fail to pay;
2) Rescission — Cancel the sale, should the vendee's
failure to pay cover two or more installments;
Maceda Law Sales of Residential Realty on Installments
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for the 2022 Bar
3) Foreclosure — Foreclose the chattel mortgage on the
thing sold, if one has been constituted, should the
vendee's failure to pay cover two or more installments.
In this case, he shall have no further action against the
purchaser to recover any unpaid balance of the price. Any
agreement to the contrary shall be VOID.
1. Recto Law prevents mortgagee from seizing mortgaged
property, buying it at foreclosure sale for a low price and then
bringing the suit against the mortgagor for a de ciency
judgment. [Magna Financial Services Group v. Colarina]
2. In a case, mortgagor-buyer never bought the subject vehicle
from the nancing company but from a third party, and
merely sought nancing from the mortgagee for its full
purchase price. Consequently, Art 1484 does not apply against
nancing company. [Equitable Savings Bank v. Palces 2016]
3. Purported Lease with Option to Buy. Where a lease
agreement over equipment is without an express option to
purchase, but nevertheless when a nal demand is given prior
to suit, the demand letter indicates clearly it was within the
option of the lessee to fully pay the balance of the unpaid
rentals and would be able to keep the equipment, then the real
contract between the parties was a sale of movable on
installment disguised as a lease agreement. [PCI Leasing and
Finance v. Giraffe-X Creative Imaging]
4. Generally, mutual restitution is required in case of rescission.
As a way of exception, a stipulation that the installments or
rents paid shall not be returned to the vendee or lessee shall be
valid insofar as the same may not be unconscionable under the
circumstances. (Art 1486)
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1. Maceda Law recognizes in conditional sales of all kinds of real
estate seller’s right to cancel the contract upon non-payment
of an installment by the buyer, which is simply an event that
prevents the obligation of the vendor to convey title from
acquiring binding force.
2. How Cancellation of Contract Can Be Effected. The
cancellation of the contract under the Maceda Law must
follow the following steps:
a. First, seller should extend the buyer a grace period of at
least 60 days from the due date of the installments.
b. Second, at end of grace period, seller shall furnish buyer
with a notarial notice of cancellation or demand for
rescission, e ective 30 days from buyer’s receipt thereof;
a mere notice or letter, would not su ce. [McLaughlin v.
CA]
c. Third, for contracts covering more than two years of
payments, there must be a return to the buyer of the cash
surrender value. [Villdara, Jr. v. Zabala]
d. Until and unless seller complies with these mandatory
requirements, contract to sell remains valid and subsisting.
[Communities Cagayan v. Nanol 2012]
3. Important Features.
a. After having paid installment for at least two (2) years,
the buyer is entitled to a mandatory grace period of one
month for every year of installment payments made, to
pay the unpaid installments without interest.
b. If the contract is cancelled, the seller shall refund to the
buyer the cash surrender value equivalent to 50% of the
total payments made, and after ve years of installments,
Reviewer
an additional 5% every year but not to exceed 90% of total
payment made. Thus, if installment paid
i. 2 – 5 years — 50%;
ii. > 5 years — 50% + 5% for every year.
iii. But in no case shall exceed 90%.
c. In case the installments paid were less than two years,
the seller shall give the buyer a grace period of not less
than 60 days.
d. If the buyer fails to pay the installments due at the
expiration of the grace period, the seller may cancel the
contract after 30 days from receipt by the buyer of the
notice of cancellation or demand for rescission by notarial
act.
4. The buyers cannot use the second sentence of Section 4 of the
Maceda Law against the sellers’ alleged failure to give an
e ective notice of cancellation or demand for rescission
because the sellers merely sent the notice to the address
supplied by the buyers in the Contract to Sell. [Sps Garcia v.
CA 2010]
5. Under the Maceda Law, the right of the buyer to refund
accrues only when he has paid at least two years of
installments. [Manuel Uy & Sons v. Valbueco, Inc. 2013]
G Extinguishment
1 In general
ART 1600. Sales are extinguished by the same causes as all other
obligations, by those stated in the preceding articles of this
Title, and by conventional or legal redemption.
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2 Pacto de retro sale
Conventional Redemption
1. Conventional redemption shall take place when the
vendor reserves the right to repurchase the thing sold. (Art
1601)
2. How Is Redemption Effected? (Art 1616)
In order to exercise the right to redeem, only tender of
payment is su cient; consignation is not required after
tender is refused. When tender is not possible, consignation
should be made.
A formal o er to redeem accompanied by a tender of
redemption price is not essential where the right is exercised
through a judicial action within the redemption period and
simultaneously depositing the redemption price. [Lee Chuy
Realty Corp. v. CA]
3. Redemption Price (Art 1616)
A stipulation in a sale a retro requiring as part of the
redemption price interest for the cost of money, is not in
contravention with Art 1616, since the provision is not
restrictive nor exclusive, and does not bar additional amounts
that the parties may agree upon, since the article itself provides
“and other stipulations which may have been agreed upon.”
4. Fruits – Article 1617 on the disposition of fruits of property
redeemed applies only when the parties failed to provide a
sharing arrangement thereof; otherwise, the parties contractual
stipulations prevail. [Almeda v. Daluro]
5. Effect When No Redemption Made (Art 1607) —
Consolidation
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If the vendee succeeds in proving that the transaction was
indeed a pacto de retro, the vendor is still given a period of
thirty days from the nality of the judgment within which to
repurchase the property.
Once vendor fails to redeem the property within the stipulated
period, irrevocable title shall be vested in the vendee by
operation of law. [Vda. de Rigonan v. Derecho]
Under a sale a retro, failure of buyer to consolidate his title
under Art 1607 does not impair such title and ownership
because the method prescribed thereunder is merely for the
purpose of registering and consolidating titles to the property.
[Cadungog v. Yap]
Legal Redemption
1. Legal redemption is in the nature of a privilege created by
law partly for reasons of public policy and partly for the
bene t and convenience of the redemptioner, to a ord him a
way out of what might be a disagreeable or an inconvenient
association into which he has been thrust.
It is intended to minimize co-ownership. (Art 1619)
2. Under the Civil Code
a. Among Co-Heirs (Art 1088)
When heirs have partitioned the estate among themselves and
each have occupied and treated de nite portions thereof as
their own, co-ownership has ceased even though the property
is still under one title, and sale by one of the heirs of his
de nite portion cannot trigger the right of redemption in
favor of the other heirs. [Vda. De Ape v. CA]
Reviewer
Heirs who actually participated in the execution of the
extrajudicial settlement, which included the sale to a third
person of their pro indiviso shares in the property, are bound
by the same; while the co-heirs who did not participate are
given the right to redeem their shares pursuant to Art 1088.
[Cua v. Vargas]
b. Among Co-Owners (Art 1620)
c.
When seller a retro dies, right to redeem cannot be exercised by
a co-heir alone, since the right belonged in common to all the
heirs. [De Guzman v. CA]
The right of redemption may be exercised by a co-owner only
when part of the community property is sold to a stranger,
not when sold to another co-owner because a new participant
is not added to the co-ownership. [Fernandez v. Tarun]
For the right of redemption to be exercised, co-ownership
must exist at the time the conveyance is made by a co-owner
and the redemption is demanded by the other co-owner or
co-owners. [Avila v. Barabat]
Redemption by co-owner redounds to the bene t of all
co-owners; and 30-day redemption period, begins from
written notice served by seller to the party entitled to exercise such
redemption right, [Guillen v. CA]
The requisites for the exercise of legal redemption are as
follows:
1) there must be co-ownership;
2) one of the co-owners sold his right to a stranger;
3) the sale was made before the partition of the
co-owned property;
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4) the right of redemption must be exercised by one or
more co-owners within a period of thirty days to be
counted from the time he or they were noti ed in
writing by the co-owner vendor; and
5) the vendee must be reimbursed the price of the sale.
[Calma v. Santos]
Among Adjoining Owners (Arts 1621 and 1622)
Right of redemption covers only “resale” and does not cover
exchanges or barter of properties [De Santos v. City of Manila]
When there is no issue that adjoining lands involved are both
rural lands, right to redeem can be exercised and the only
exception is when the buyer cannot show that he did not own
any other rural land. [Primary Structures Corp. v. Valencia]
a) Rural Land — The owners of adjoining lands shall also
have the right of redemption when a piece of rural land,
the area of which does not exceed one hectare, is
alienated, unless the grantee does not own any rural land.
If two or more adjoining owners desire to exercise the
right of redemption at the same time,
1) the owner of the adjoining land of smaller area
shall be preferred; and
2) should both lands have the same area, the one
who rst requested the redemption. (Art 1621)
b) Urban Land — Whenever a piece of urban land which is
1) so small and
2) so situated that a major portion thereof cannot be
used for any practical purpose within a reasonable
time,
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3) having been bought merely for speculation,
4) is about to be re-sold,
the owner of any adjoining land has a right of pre-emption
at a reasonable price.
If the resale has been perfected, the owner of the adjoining
land shall have a right of redemption, also at a reasonable
price.
When two or more owners of adjoining lands wish to
exercise the right of pre-emption or redemption, the
owner whose intended use of the land in question
appears best justified shall be preferred.
d. Sale of Credit in Litigation (Art 1634) — 30 Days from
Notice of Demand to Pay.
For debtor to be entitled to extinguish his credit by
reimbursing the assignee under Art 1634, the following
requisites must concur:
a) there must be a credit or other incorporeal right;
b) the credit or other incorporeal right must be in litigation;
c) credit or other incorporeal right must be sold to an
assignee pending litigation;
d) assignee must have demanded payment from the debtor;
e) debtor must reimburse the assignee for the price paid,
judicial costs incurred and interest on the price from the
day on which the same was paid; and
f) reimbursement must be done within 30 days from the
date of the assignee’s demand. [Situs Dev. Corp. v.
Asiatrust Bank 2012]
Reviewer
3. When Period of Legal Redemption Begins (Art 1623)
The 30-day period for the commencement of the right to
exercise the legal redemption right, even when such right has
been recognized to exist in a nal and executory court decision,
does not begin from the entry of judgment, but from the
written notice served by the seller to the party entitled to
exercise such redemption right. [Guillen v. CA]
Interpretation of Art 1623 where there is a need for notice in
writing, should always tilt in favor of redemptioner and
against buyer, since the purpose is to reduce the number of
participants until the community is terminated. [Hermoso v.
CA]
Written notice of sale is mandatory, notwithstanding
actual knowledge of a co-owner, in order to remove all
uncertainties about the sale, its terms and conditions, as well as
its e cacy and status. [Verdad v. CA]
Notice required under Art 1623 is deemed to have been
complied with when other co-owner has signed Deed of
Extrajudicial Partition which embodies the disposition of part
of the property owned in common. [Fernandez v. Tarun]
Francisco v. Boiser, summarized the case-law on Art. 1623, and
with de nitiveness declared:
1. For the 30-day redemption period to begin to run,
notice must be given by seller;
2. When notice is given by the proper party (seller), no
particular form of written notice is prescribed under
Art 1623, so that the furnishing of the copies of the
deeds of sale to the co-owner would be su cient.
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3. A rmed ruling in Alonzo v. IAC, that ling of suit for
ejectment or collection of rentals against a
co-owner actually dispenses with the written notice,
and commences running of period to exercise the
right of redemption, since ling of the suit amounted
to actual knowledge of the sale.
Rare Exceptions — When sale to the buyer was e ected
through the co-owner acting as broker, and never indicated
that he would exercise his right to redeem. [Distrito v. CA]
When buyers took possession of the property immediately
after the execution of the deed of sale in their favor and lived in
the midst of the other co-owners who never questioned the
same. [Pilapil v. CA]
3 Equitable mortgage
1. When a Pacto de Retro Sale Presumed an Equitable
Mortgage.
a. When the price of a sale with right to repurchase is
unusually inadequate;
b. When the vendor remains in possession as lessee or
otherwise;
c. 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;
d. When the purchaser retains for himself a part of the
purchase price;
e. When the vendor binds himself to pay the taxes on
the thing sold;
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f. 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. (Art 1602)
2. Equitable Mortgage. — two requisites must concur:
1) that the parties entered into a contract denominated
as a sale; and
2) the intention was to secure an existing debt by way of
mortgage.
Equitable mortgage favors the least transmission of rights and
4. The right of redemption, in the absence of an express
interest over a property in controversy, since the law seeks to
agreement, shall last four years from the date of the contract.
prevent circumvention of the law on usury and the
prohibition against pactum commissorium provisions.
An equitable mortgage is a voidable contract. It may be
annulled within four (4) years from the time the cause of
action accrues. [Ayson, Jr. v. Paragas]
Although Art 1605 which allows for the remedy of
reformation, nothing therein precludes an aggrieved party
from pursuing other remedies to e ectively protect his interest
and recover his property, such as an action for declaration of
nullity of the deed of sale and speci c performance.
3. Pactum Commissorium (Art 2088) — A stipulation
which enables the mortgagee to acquire ownership of the
mortgaged properties without need of any foreclosure
proceedings—it is a nullity, [Lumayag v. Heirs of Jacinto
Nemeño]; and has been repeatedly declared as contrary to
morals and public policy, [Solitarios v. Jaque 2014]
In a pactum commissorium there should be:
Reviewer
1) a property mortgaged by way of security for the
payment of the principal obligation, and
2) a stipulation for automatic appropriation by the
creditor of the thing mortgaged in case of
non-payment of the principal obligation within the
stipulated period.
That the questioned contracts were freely and voluntarily
executed by the parties is of no moment, pactum
commissorium being VOID for being prohibited by law. [Ong
v. Roban Lending Corp.]
Should there be an agreement, the period cannot exceed ten
years.
However, the vendor may still exercise the right to repurchase
within thirty days from the time nal judgment was rendered
in a civil action on the basis that the contract was a true sale
with right to repurchase. (Art 1606)
Sellers in a sale judicially declared as pacto de retro may not
exercise the right to repurchase within the 30-day period
under Art 1606, although they have taken the position that
the same was an equitable mortgage, if it is shown that there
was no honest belief thereof since none of the circumstances
under Art 1602 were shown to exist.
If they truly believed the sale to be an equitable mortgage, as a
sign of good faith, they should have consigned with the
amount representing their alleged loan, on or before the
expiration of the right to repurchase. [Abilla v. Gobonseng]
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for the 2022 Bar
H Assignment of Credits
1) An assignment of credit is an agreement by virtue of which
the owner of a credit, known as the assignor, by a legal cause,
such as sale, dacion en pago, exchange or donation, and
without the consent of the debtor, transfers his credit and
accessory rights to another, known as the assignee, who
acquires the power to enforce it to the same extent as the
assignor could enforce it against the debtor. [Aquintey v.
Tibong]
2) As a consequence, the third party steps into the shoes of the
original creditor as subrogee of the latter. Although
constituting a novation, such assignment does not extinguish
the obligation under the credit assigned, even when the
assignment is e ected without his consent. [South City Homes
V. BA Finance Corp.]
3) By virtue of the Deed of Assignment, assignee is deemed
subrogated to the rights and obligations of assignor and is
bound by exactly the same conditions as those which bound
the assignor. Accordingly, an assignee of a nonnegotiable chose
in action acquires no greater right than what was possessed by
his assignor and simply stands into the shoes of the latter. [Fort
Bonifacio Dev. Corp. v. Fong 2015]
VI Lease
General Provisions
Rights and Obligations of the Lessor
Rights and Obligations of the Lessee
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A General Provisions Usury Law Cause More or less ACTIVE More or less PASSIVE

1. Lease is a consensual, bilateral, onerous, and commutative If what is leased is real Usufructuary has the
Statute of Lessee generally has no
contract by which one person binds himself to grant property for more than ✘ Repairs duty to make ordinary
Frauds duty to pay for repairs
temporarily the use of a thing or the rendering of some service one year repairs
to another who undertakes to pay some rent, compensation,
Property Real and Personal Personal only Usufructuary pays for
or price. Lessee generally pays
Taxes annual charges and taxes
NO taxes
2. The contract of lease may be of things, or of work and service. Lease Commodatum on the fruits
(Art 1642)
Onerous ✔ ✘ Lessee cannot constitute
3. Distinctions between Lease and other contracts Usufructuary may lease
Other things a usufruct on the
the property to another.
Personal ✘ ✔ property leased
Lease Sale

What is Only use or enjoyment Ownership

Consensual ✔ ✘ 4. In the lease of things, one of the parties binds himself

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

Lease Usufruct
b. for a price certain, and
Transfer is Temporary Permanent
Only a particular or c. for a period which may be definite or indefinite.
Extent Covers all fruits and uses
Must be Lessor need not be the Seller must be the owner speci c use
However, no lease for more than ninety-nine (99) years shall
owner owner at the time the property
Personal, unless it be valid. (Art 1643)
is delivered
pertains to lease of real 5. In the lease of work or service, one of the parties binds
Nature of
Price of object Distinguished from rent, Usually mentioned property which is Always a real right himself
right
usually not mentioned registered, or is for more
than one year. a. to execute a piece of work or
Lease Mutuum b. to render to the other some service
Creator of May or may not be the Owner, or by his duly
Loses right owner authorized agent c. for a price certain,
✘ ✔
ownership d. but the relation of principal and agent does not exist
Created only by
between them. (Art 1644)
Relationship Lessor-Lessee Obligor-Obligee contract, except as to By law, contract, will, or
Origin
tacita reconduccion prescription.
Lease of Services Contract for a Piece of Work
Governed by ✘ ✔ which is by law.

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Civil Law and Practical Exercises
The important object here is the The important object here is the
labor performed for the lessor. work done, the result of the
labor
The result is generally NOT The result is generally important;
important the price is not payable until the
work is completed.
Laborer is entitled to be paid Price cannot generally be
even if there is destruction of the lawfully demanded if the work is
work through a fortuitous event. destroyed before it is nished
and accepted.
6. Causes for Judicial Ejectment.
a. When the period agreed upon, or that which is xed
for the duration of leases under Articles 1682 and
1687, has expired;
b. Lack of payment of the price stipulated;
c. Violation of any of the conditions agreed upon in the
contract;
d. When the lessee devotes the thing leased to any use or
service not stipulated which causes the deterioration
thereof; or if he does not observe the requirement in
No. 2 of Article 1657, as regards the use thereof. (Art
1673)
7. Rules on Useful Improvements and Ornamental
Expenses.
a. If the lessee makes, in good faith, useful
improvements
Reviewer
i. which are suitable to the use for which the
lease is intended,
ii. 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
i. may remove the improvements,
ii. even though the principal thing may su er damage
thereby.
He shall not, however, cause any more impairment upon
the property leased than is necessary.
b. 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. (Art 1678)
B Rights and Obligations of the Lessor
1. The lessor is obliged:
a. To deliver the thing which is the object of the contract in
such a condition as to render it t for the use intended;
b. To make on the same during the lease all the necessary
repairs in order to keep it suitable for the use to which it has
been devoted, unless there is a stipulation to the contrary;
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c. To maintain the lessee in the peaceful and adequate
enjoyment of the lease for the entire duration of the contract.
(Art 1654)
2. Accion Directa. Lessor may directly bring an action against a
sublessee even though the latter is not a party to the lease contract.
3. Subsidiary Liability of Sublessee. However, the sublessee shall
not be responsible beyond the amount of rent due from him, in
accordance with the terms of the sublease, at the time of the
extrajudicial demand by the lessor. (Art 1652)
C Rights and Obligations of the Lessee
1. Effect of Total or Partial Destruction. If the thing leased is
totally destroyed by a fortuitous event, the lease is extinguished.
If the destruction is partial, the lessee may choose between
a. a proportional reduction of the rent and
b. a rescission of the lease. (Art 1655)
2. Obligations of Lessee. The lessee is obliged:
a. To pay the price of the lease according to the terms stipulated;
b. To use the thing leased as a diligent father of a family,
devoting it to the use stipulated; and in the absence of
stipulation, to that which may be inferred from the nature of
the thing leased, according to the custom of the place;
c. To pay expenses for the deed of lease. (Art 1657)
NB: This is di erent from a contract of sale wherein it is the
seller who generally pays the expenses for the deed of sale.
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d. To notify lessor in case of usurpation or need for repairs; 8. Tacita Reconduccion — Implied New Lease. If at the end of 2. to contribute money, property, or industry
otherwise, lessee will be liable for damages which the lessor the contract the lessee
3. to a common fund,
would su er. (Art 1663)
a. should continue enjoying the thing leased for fteen days
4. with the intention of dividing the pro ts among themselves.
e. To return the thing leased, upon the termination of the lease,
b. with the acquiescence of the lessor, and
as he received it. (Art 1665) General professional partnership. Two or more persons may also
c. unless a notice to the contrary by either party has previously form a partnership for the exercise of a profession.
3. When Lessee May Suspend Rental Payment. In case the lessor
been given,
fails Characteristic Elements
it is understood that there is an implied new lease, not for the
a. to make the necessary repairs or 1) Consensual — perfected by mere consent;
period of the original contract, but for the time established in
b. to maintain the lessee in peaceful and adequate enjoyment of Articles 1682 and 1687. 2) Nominate — has a special name in law;
the property leased. (Art 1658)
The other terms of the original contract shall be revived. (Art 3) Bilateral — entered into by 2 or more persons with
4. In case of non-ful llment of duties, aggrieved party may seek 1670) reciprocal rights and obligations;
a. Rescission + Damages; or Acceptance of rentals beyond the original term does NOT signify 4) Onerous — parties aspire to gain some bene t;
acquiescence. There is thus no implied renewal of lease. [Torres v.
b. Damages only, leaving the contract in force — speci c 5) Commutative — the undertaking of each of the partners is
CA]
performance. (Art 1659) considered as the equivalent of that of the others;
5. Should there be a need for urgent repairs, the lessee may ask for 6) Principal — does not depend upon some other contracts;
VII Partnership
proportionate reduction of rent only if the repairs last 40 days 7) Preparatory — a means to an end.
or more. (Art 1662)
General Provisions
6. If lessor fails to make urgent repairs. Lessee may Essential Features
Obligations of the Partners
1) There must be a valid contract;
a. Order the repairs at the lessor’s cost, in order to avoid
Dissolution and Winding up
imminent danger; 2) The parties have legal capacity to enter into the contract;
Limited Partnership 3) There must be a mutual contribution of money, property or
b. Sue for damages;
industry to a common fund;
c. Suspend payment of rent;
A General Provisions 4) The object must be lawful; and
d. Ask for rescission, in case of substantial damage.
De nition 5) The primary purpose is to carry on a business for pro ts and
7. Trespass in fact — perturbación de mere hecho. When an
to divide the same among the parties.
intruder or trespasser claims no right whatsoever, the lessor is not By the contract of partnership
liable to the lessee. The lessee instead has a direct action against the
1. two or more persons bind themselves
intruder. (Art 1664)

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Partnership as a juridical person
The partnership has a juridical personality separate and
distinct from that of each of the partners, even in case of failure to
execute a public instrument and register the same with the SEC if
such partnership has a capital of at least P3K.
However, a contract of partnership is void, whenever immovable
property is contributed thereto
1. if an inventory of said property is not made,
2. signed by the parties, and
3. attached to the public instrument.
Secret Associations and Societies. Associations and societies,
1. whose articles are kept secret among the members, and
2. wherein any one of the members may contract in his own
name with third persons,
shall have no juridical personality, and shall be governed by the
provisions relating to co-ownership.
A partnership for the practice of law, constituted in accordance
with the Civil Code provisions on partnership, acquires juridical
personality by operation of law. (Saludo, Jr. v. PNB 2018)
Rules to determine existence of partnership
1) Persons who are not partners as to each other are not partners
as to third persons except as provided by Article 1825 on
partnership by estoppel;
2) Co-ownership or co-possession does not of itself establish a
partnership, whether such co-owners or co-possessors do or do
not share any pro ts made by the use of the property;
Reviewer
3) The sharing of gross returns does not of itself establish a
partnership, whether or not the persons sharing them have a
joint or common right or interest in any property from which
the returns are derived;
4) The receipt by a person of a share of the pro ts of a
business is prima facie evidence that he is a partner in the
business, except if such pro ts were received in payment as:
a) Debt by installments or otherwise;
b) Wages of an employee or rent to a landlord;
c) Annuity to a widow or representative of a deceased
partner;
d) Interest on a loan, though the amount of payment
vary with the pro ts of the business;
e) Consideration for the sale of a goodwill of a business
or other property by installments or otherwise.
Incidents of a partnership
1) Partners share in pro ts and losses. There is community of
interest; (1767, 1797, 1798)
2) They have equal rights in the management and conduct of the
business; (1803)
3) Every partner is an agent of the partnership who binds the
others for his acts for the purpose of its business; (1818)
4) All partners are personally liable for the debts of the
partnership with their separate property (1816, 1822-1824)
exc limited partners; (1843)
5) The books shall be kept at the principal place of business;
(1805)
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6) A duciary relation exists between partners; (1807)
7) A capitalist partner cannot carry on a competing business
unless expressly allowed (1808), while an industrial partner is
absolutely prohibited from engaging in any other business;
(1789)
8) The partnership is not terminated upon dissolution, but
continues until the winding up is completed. (1828)
E ects of an unlawful partnership
1) The contract is void ab initio and the partnership never existed
in the eyes of the law;
2) The pro ts are con scated in favor of the government;
3) The instruments or tools and proceeds of the crime shall also
be forfeited; and
4) The contributions of partners shall not be con scated unless
they fall under No. 3.
A partnership is dissolved ipso facto upon the happening of an event
which makes it unlawful for the business to be carried on, or for the
members to carry it on in partnership. A judicial decree is NOT
necessary to dissolve an unlawful partnership.
Form of partnership contract
GR: No special form is required for the validity or existence of
partnership. The contract may be made orally or in writing.
EXC: Where immovable property or real rights are contributed.
In such case, a public instrument is necessary. To a ect third
persons, the transfer of real property to the partnership must
be duly registered in the Registry of Property.
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An inventory of the contributed property duly signed by the
parties should also be attached to the public instrument. This
is indispensable to the validity of the partnership. (Litonjua
v. Litonjua)
If capital is at least P3K, in money or property, the contract
1) shall appear in a public instrument,
2) which must be recorded in the SEC.
Classi cations of partnership
1) As to extent of its subject matter
a) Universal which refers to all the present property or to
all the pro ts.
i) Universal partnership of all present property —
that in which the partners contribute all the property
which actually belongs to them to a common fund,
with the intention of dividing the same among
themselves, as well as all the pro ts which they may
acquire therewith.
ii) ✔ Universal partnership of pro ts — comprises all
that the partners may acquire by their industry or
work during the existence of the partnership.
This is presumed if the nature of articles of universal
partnership is not speci ed.
b) Particular — has for its object determinate things, their
use or fruits, or a speci c undertaking, or the exercise of a
profession or vocation.
2) As to liability of partners
Reviewer
a) General — one consisting of general partners who are
liable pro rata and subsidiarily, and sometimes solidarily
with their separate property for partnership debts;
b) Limited — one formed by 2 or more persons having as
members one or more general partners and one or more
limited partners, the latter not being personally liable for
the obligation of the partnership.
3) As to duration
a) At will —
i) no time is speci ed and is not formed for a particular
undertaking and which may be terminated anytime
by mutual agreement of the partners or by the will of
one of them; OR
ii) one for a xed term or particular undertaking that is
continued after the termination of such term or
particular undertaking without any express agreement
b) With a xed term — one in which the term is xed or
agreed upon or formed for a particular undertaking, and
upon expiration of the term or completion of the
undertaking, the partnership is dissolved, unless
continued by the partners.
4) As to the legality of its existence — as to compliance with
all legal requirements for establishment:
a) De jure — complied;
b) De facto — failed;
5) As to representation to others
a) Ordinary or real — exists among partners as also as to
third persons;
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b) Ostensible or by estoppel — in reality is not a
partnership, but is considered one only in relation to those
who, by their conduct or admission, are precluded to deny
or disprove its existence.
6) As to publicity
a) Secret — the existence of certain persons as partners is
not made known to the public;
b) Open or notorious — whose existence is made known to
the public by the members.
7) As to purpose
a) Commercial or trading — formed for the transaction of
business;
b) Professional or non-trading — formed for the exercise
of a profession.
B Obligations of the Partners
Obligations of the Partners Among Themselves
When does a partnership commence?
GR: From the moment of the execution of the contract.
EXC: Unless otherwise stipulated.
Obligations of partners with
respect to contribution of property
1) To contribute at the beginning of the partnership or at the
stipulated time the money, property, or industry which he may
have promised to contribute;
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2) To answer for eviction in case the partnership is deprived of
the determinate property contributed;
3) To answer for the fruits of the property the contribution of
which he delayed, from the date they should have been
contributed up to the time of actual delivery.
Prohibition against engaging in business
1) Industrial partner — Absolutely prohibited, regardless of
the nature of the business whether of the same kind or not.
Unless expressly allowed, not merely by toleration. The
remedies of the other partners would be
a) To exclude the erring industrial partner from the
rm; or
b) To avail themselves of the bene ts which he may
have obtained;
c) Plus right to damages in either case.
2) Capitalist partner — Relative prohibition, only to any
business of the same kind, unless there is a stipulation to the
contrary. Sanctions for violating the prohibition include:
a) Bringing to the common funds any pro ts from the
other business; and
b) Personally bearing the losses.
When is a capitalist partner obliged to sell his interest to others?
1) There is an imminent loss of the partnership business;
2) The majority of the capitalist partners are of the opinion
that an additional contribution to the common fund would
save the business;
Reviewer
3) The capitalist partner refuses deliberately to contribute an
additional share to the capital; and
4) There is no agreement that even in case of an imminent loss of
the business, the partners are not obliged to contribute.
Here, an industrial partner is exempt from contributing an additional
share. He has already contributed his entire industry.
Obligation of managing partner who collects debt
Where
1) There exists at least 2 debts, one where the collecting partner is
creditor, and the other, the partnership is the creditor;
2) Both debts are demandable; and
3) The collecting partner is authorized to manage and actually
manages the partnership, the RULE is as follows:
GR: The sum received is to be applied to the 2 credits in
proportion to their amounts.
EXC: If received, for the account of the partnership, shall be applied
to the partnership credit only.
EXC to EXC:
If credit to the collecting partner is more onerous, the debtor
is given the right to prefer payment to the former.
Obligation of partner who receives
share of partnership credit
A partner shall be obliged to bring to the partnership capital what
he received even though he may have given receipt for his share only,
IF
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1) He has received, in whole or in part, his share of a partnership
credit;
2) The other partners have not collected theirs; AND
3) The partnership debtor has become insolvent.
Obligations of partner for damages to partnership
GR: The damages caused by a partner to the partnership
CANNOT be o set by the pro ts or bene ts which he may
have earned for the partnership by his industry.
EXC: If through the partner's extraordinary e orts in other
activities of the partnership, unusual pro ts have been
realized, the courts may equitably lessen this
responsibility.
Risk of loss of things contributed
Who bears loss?
Speci c and determinate things, which are not
Partner
fungible where only use is contributed
Speci c and determinate things the ownership
Partnership
of which is transferred to the partnership
Fungibles or things which cannot be kept
without deteriorating even if contributed only Partnership
for use
Things contributed to be sold Partnership
Things brought and appraised in the inventory Partnership
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Rules for distribution of pro ts and losses
1) Capital
a) According to agreement;
b) If no agreement, the share shall be equal;
c) In case of imminent loss of the business, additional shares
may be determined by the majority.
2) Pro ts
a) According to agreement;
b) If no agreement
i) The share of the capitalist partner is in proportion to
his capital contribution.
ii) The industrial partner shall receive such share as may
be just and equitable, which must be satis ed rst
before the capitalist partners shall divide the pro ts.
This means the least amount that a capitalist partner
gets.
3) Losses
a) According to agreement;
b) If no agreement, but the contract provides for a
pro t-sharing scheme, the losses shall be in accordance
with that scheme.
c) If there is also no pro t-sharing stipulated, then losses
shall be borne in proportion to capital contribution.
In any case, the purely industrial partner shall not be
liable for the losses.
Reviewer
Can a third person be designated to determine share in profits
or losses?
YES. If the partners have agreed to intrust to a third person.
Such designation may be impugned only when it is manifestly
inequitable. In no case may a partner complain of such decision if
he
1. Has begun to execute the decision of the third person, or
2. Has not impugned the same within a period of three
months from the time he had knowledge thereof,
The designation of losses and pro ts cannot be intrusted to one of
the partners.
A stipulation which excludes one or more partners from any share
in the pro ts or losses is VOID.
Management
1) If ONE is appointed manager
May execute all acts of administration despite the opposition
of his partners, unless he should act in bad faith;
If appointed in articles of partnership, his power is irrevocable
without just or lawful cause. Thus, removal may be had
only
a) For lawful cause of if there is bad faith; AND
b) Through the votes of the partners representing the
controlling interest.
If appointed after the partnership has been constituted, his
power may be revoked at any time by the vote of the partners
representing the controlling interest.
GR: Partner NOT entitled to compensation.
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2) If TWO OR MORE are appointed managers
a) without speci cation of their respective duties, or
b) without a stipulation that one of them shall not act
without the consent of all the others,
each one may separately execute all acts of administration,
but if any of them should oppose the acts of the others, the
decision of the majority of the managers shall prevail.
In case of a tie, the matter shall be decided by the partners
owning the controlling interest.
In case UNANIMITY OF ACTION is stipulated, the
CONCURRENCE OF ALL shall be necessary for the
validity of the acts.
The absence or disability of any one of them cannot be alleged,
unless there is imminent danger of grave or irreparable
injury to the partnership.
3) When the manner of management has NOT been agreed
upon, the following rules shall be observed:
a) ALL the partners shall be considered agents and
whatever any one of them may do alone shall bind the
partnership.
b) UNANIMOUS CONSENT is required in making
any important alteration in the immovable
property of the partnership, even if it may be useful to
the partnership.
But if the refusal of consent by the other partners is
manifestly prejudicial to the interest of the partnership,
the court's intervention may be sought.
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EXC: The law may imply a contract for compensation. a) Equal right to possess for partnership purposes, Original capital Aggregate of the
but not for any other purpose without the consent of contribution + All individual contributions
Subpartnership the other partners; Assets property subsequently made in establishing or
Every partner may associate another person with him in his share, included acquired + Partnership continuing the
b) NOT assignable except in connection with the
but the associate shall NOT be admitted into the partnership assignment of rights of all the partners in the same name + Goodwill partnership
without the consent of ALL the other partners, even if the property;
partner having an associate should be a manager. Assignment of partner’s whole interest
c) NOT subject to attachment or execution except
Right of partner to a formal account on a claim against the partnership; This is permitted without causing dissolution. However, such
assignment does NOT grant the assignee the right to:
GR: During the existence of the partnership, a partner is NOT When partnership property is attached for a
entitled to a formal account of partnership a airs since his partnership debt the partners, or any of them, or the a) Interfere in the management;
right to know are amply protected with regard to access to representatives of a deceased partner, cannot claim b) Require any information or account; or
partnership books. any right under the homestead or exemption
c) Inspect partnership books.
laws.
EXC: Action for accounting. Any partner shall have the right to a
The only rights of the assignee are:
formal account as to partnership a airs: d) NOT subject to legal support.
1) To receive the pro ts accruing to the assigning partner;
1) If he is wrongfully excluded from the partnership business or 2) His interest in the partnership;
possession of its property by his co-partners; 2) To avail of usual remedies in the event of fraud in the
Refers to his share of the pro ts and surplus. These may be
management;
2) If the right exists under the terms of any agreement; assigned.
3) To receive assignor’s interest in case of dissolution;
3) As provided by Article 1807 — Every partner must account to A partner shall NOT be deprived of his right, if any, under the
the partnership for any bene t, and hold as trustee for it any exemption laws, as regards his interest in the partnership. 4) To require an account of partnership a airs, but only in case
pro ts derived by him without the consent of the other of dissolution.
3) His right to participate in the management.
partners from any transaction connected with the formation, Remedies of separate judgment creditor of a partner
conduct, or liquidation of the partnership or from any use by Partnership Property Partnership Capital
him of its property. 1) Application for a charging order after securing judgment
Changes on his credit. However, claims of partnership creditors
4) Whenever other circumstances render it just and reasonable. VARIES CONSTANT
in value must be satis ed rst.
e.g. a partner has been assigned abroad for a long time.
2) Other remedies may include
Property Rights of a Partner a) Receivership;
1) His rights in speci c partnership property;
b) Sale of interest.
A partner is co-owner with his partners.

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The interest charged may be redeemed. A stipulation among partners contrary to the pro rata and 4) Confess a judgment;
subsidiary liability expressly imposed is VOID and of no e ect as
5) Enter into a compromise concerning a partnership
Obligations of the Partners to third persons.
claim or liability;
with Regard to Third Persons
Such stipulation however is VALID and enforceable among the
Liability for inclusion of name in firm name 6) Submit a partnership claim or liability to arbitration;
partners.
Partners by estoppel. Persons who, being not partners, include 7) Renounce a claim of the partnership.
Liability of partnership for acts of partners
their names in the rm name 3) Acts in contravention of a restriction on authority
1) Acts for apparently carrying out the usual way of
1. DO NOT acquire the rights of a partner, GR: Partnership is NOT liable to third persons having
business of the partnership a.k.a. Acts of administration
2. but they shall be SUBJECT to the liability of a partner actual or presumptive knowledge of the restrictions.
GR: Every partner is an agent and may execute such acts
insofar as third persons without notice are concerned. EXC: Such persons not having such notice have a right to
with binding e ect.
Liability for contractual obligations of the partnership assume that the authority of a partner is co-extensive
EXC: If the partner so acting with the business transacted by his rm.
The general rule is that a partner, who had actual or apparent
authority, has the right to make all partners liable for the a) Has in fact no authority; AND
Conveyance of real property owned by partnership
contracts he makes for the partnership in the name and for the b) The third person KNOWS. Title in Conveyance
account of the partnership. EFFECT
2) Acts of strict dominion or ownership name of in name of
The individual liability of partners to creditors is pro rata and
GR: NOT binding; Passes title, but partnership can
subsidiary.
EXC: Unless authorized by the other partners. recover if
1) Pro rata — based on the number of partners, and not on the
a) Conveyance was not in usual
amount of contribution. Except when authorized by the other partners or
Partnership Partnership way of business; or
unless they have abandoned the business, one or
2) Subsidiary or secondary — only after all the partnership b) Buyer had knowledge that
more but less than all the partners have no authority
assets have been exhausted. the partner-seller had no
to:
authority.
Industrial partners, although not liable for losses, are
1) Assign the partnership property in trust for creditors
personally liable for liabilities of the partnership to third Buyer gets equitable interest of the
or on the assignee's promise to pay the debts of the
persons. partnership except if
partnership; Partner’s
Losses = settlement of partnership a airs among partners; Partnership a) Partnership is not engaged in
2) Dispose of the goodwill of the business; name
buying and selling of lands;
Liabilities = to third persons.
3) Do any other act which would make it impossible to or
Stipulation against liability carry on the ordinary business of a partnership;

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b) Buyer had knowledge that 3. who reasonably could and should have communicated it to the Partner and Partnership by estoppel
the partner-seller had no acting partner,
When does partnership liability result?
authority.
operate as notice to or knowledge of the partnership.
Partnership by estoppel results if ALL the actual partners
Partner/s in EXC: in the case of fraud on the partnership, committed by or with consented to the representation.
One or
whose name the consent of that partner.
more Passes title, same as (1) When is liability pro rata?
the title
partners NB: Notice to any partner, under certain circumstances, operates as
stands a) When there is NO existing partnership, and all those
notice to or knowledge to the partnership only. Evidently, it
represented as partners consented; or
One or does not provide for the reverse situation, or that notice to the
more or all partnership is notice to the partners. (Guy v. Gacott 2016) b) When there is an existing partnership, and not all of the
partners or partners consented.
Partnership Buyer gets equitable interest of the Liability arising from partner’s wrongful
a third When is liability separate?
or partner partnership, same as (2) act, omission, or breach of trust
person in
The partners and partnership are SOLIDARILY liable for: a) When there is NO existing partnership, and only some of
trust for
those represented consented; or
partnership 1) Loss or injury caused to third persons — Requisites for
liability b) When there is an existing partnership, and none of the
All partners consented.
All partners Passes title. a) Partner must be guilty of a wrongful act or omission;
partners
AND Elements to establish liability as a partner on ground of estoppel
Admission by a partner b) He must be acting in the ordinary course of business, 1) Proof by plainti that he was individually aware of the
An admission or representation made by any partner concerning or with the authority of his co-partners even if the act defendant’s representations;
partnership a airs within the scope of his authority is evidence is unconnected with the business. 2) Reliance on such representation by the plainti ; and
against the partnership. 2) Loss where one partner acting within the scope of his 3) Lack of any denial or refutation of the statements by the
Notice to, or knowledge of, a partner apparent authority receives money or property of a third defendant.
person and misapplies it;
GR: Notice to any partner of any matter relating to partnership Liability of incoming partner for partnership obligations
a airs, and the knowledge of the partner acting in the 3) Loss where the partnership in the course of its business
receives money or property of a third person and the money or 1) Limited to his share in the partnership property for
particular matter,
property so received is misapplied by any partner while it is in existing obligations.
1. acquired while a partner or
the custody of the partnership; GR: Not personally liable for existing partnership
2. then present to his mind, and obligations.
the knowledge of any other partner

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separate debts, either before or after the termination of any

EXC: Unless there is a stipulation to the contrary. ii) Fraud in the management of the business;
speci ed term or particular undertaking;
2) Extends to his separate property for subsequent obligations. iii) Refusal without justi able cause to render accounting
d) Expulsion of any partner from the business bona de in
of partnership a airs, etc.
accordance with such a power conferred by the agreement
C Dissolution and Winding up between the partners; On the application of the purchaser of a partner's interest:

Three stages of ending a partnership:
1) Dissolution — is the change in the relation of the partners
caused by any partner ceasing to be associated in the carrying
on of the business.
2) Winding up — is the actual process of settling the business
or partnership a airs after dissolution, involving
a) The collection and distribution of partnership assets,
b) Payment of debts, and
2) Act of parties in violation of their agreement;
3) Operation of law —
a) Any event which makes it unlawful for the business of
the partnership to be carried on or for the members to
carry it on in partnership;
b) Loss of speci c thing — When a speci c thing which a
partner had promised to contribute to the partnership,
perishes before the delivery;
a) After the termination of the speci ed term or particular
undertaking;
b) At any time if the partnership was a partnership at will
when the interest was assigned or when the charging
order was issued.
E ect of dissolution on authority of partner
GR: Upon dissolution, a partnership ceases to be a going concern
and the partner’s power of representation is con ned only to

c) Determination of the value of each partner’s interest in
the partnership.
3) Termination — point in time when all partnership a airs are
completely wound up and nally settled. It signi es the end of
the partnership life.
4)
Causes of Dissolution
1) Act of parties NOT in violation of their agreement —
a) Termination of the de nite term or particular
undertaking speci ed in the agreement;
b) Express will of any partner, who must act in good faith,
when no de nite term or particular is speci ed;
c) Express will of ALL the partners who have not assigned
their interests or suffered them to be charged for their
c) Death of any partner; 1. acts incident to winding up or
d) Insolvency of any partner or of the partnership; 2. completing transactions begun but not nished.
e) Civil interdiction of any partner; This rule is subject to quali cations.
Court decree — On application by or for a partner the a) With respect to partners themselves —
court shall decree a dissolution due to: i) If the dissolution is NOT caused by the act, insolvency
a) Insanity; or death of a partner, the authority of any partner to bind
the partnership by a new contract is IMMEDIATELY
b) Incapacity;
terminated.
c) Misconduct;
ii) Otherwise, termination of authority depends upon WON
d) Persistent breach of partnership agreement; the partner had knowledge or notice of the dissolution —
e) The business of the partnership can only be carried GR: Each partner is liable to his co-partners for his
on at a loss; share of any liability created by any partner acting
f) Other circumstances render a dissolution equitable. for the partnership as if the partnership had not
been dissolved
i) Abandonment of the business;

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EXC: Unless the partner acting for the partnership had
a) knowledge of the dissolution caused by act of
any partner; OR
b) knowledge or notice of the death or
insolvency.
b) With respect to third persons —
i) As to prior or former dealers — persons who extended
credit to partnership prior to dissolution — must have
knowledge or actual notice of the dissolution to relieve
partnership from liability;
ii) As to persons who had known of partnership’s existence
— publication;
In both instances, the liability of a partner shall be satis ed
out of partnership assets alone when such partner had
been prior to dissolution:
1) Unknown as a partner to the person with whom the
contract is made; and
2) So far unknown and inactive in partnership a airs
that the business reputation of the partnership could
not be said to have been to any degree due to his
connection with it.
iii) The partnership is in NO case bound by any act of a
partner after dissolution:
1) Unlawful to carry on the business, unless the act is
appropriate for winding up partnership a airs;
2) Insolvency of partner;
3) Partner has no authority to wind up partnership
a airs; except by a transaction with one who —
a) Is a former dealer and had no knowledge or
notice of his want of authority; or
b) Is not a former dealer, and, having no knowledge
or notice of his want of authority, the fact of his
want of authority has not been duly published.
Winding up; manner, persons authorized
Winding up may be done judicially or extrajudicially by
1) The partners designated by the agreement;
2) In the absence of such agreement, by all partners who have not
wrongfully dissolved the partnership; OR
3) The legal representative of the last surviving partner, not
insolvent; OR
4) A court-appointed receiver.
Right of partner to application of partnership property on
dissolution
“Partner’s lien” is the right of every partner, on a dissolution,
against the other partners and persons claiming through them in
respect of their interests as partners, to have the partnership
property applied to discharge partnership liabilities and the surplus
assets, if any, distributed in cash to the respective partners, after
deducting what may be due to the rm from them as partners.
1) If dissolution NOT in contravention of agreement —
Partners have the right to have
a) The partnership property applied to discharge the
liabilities of the partnership; AND
b) The surplus, if any, applied to pay in cash the net amount
owing to respective partners.
NO partner is liable for any loss sustained as a result of
dissolution.
2) If dissolution in contravention of agreement — The
rights of a partner vary depending on his innocence.
a) If innocent —
i) To have partnership property applied for the
payment of its liabilities and to receive in cash his
share of the surplus;
ii) To be indemni ed for damages caused by the guilty
partner;
iii) To continue the business in the same name during
the agreed term, by themselves or jointly with others;
and
iv) To possess partnership property should they
decide to continue the business.
b) If guilty of wrongfully causing the dissolution —
i) If the business is NOT continued — To have
partnership property applied for the payment of its
liabilities and to receive in cash his share of the surplus
less damages.
ii) If the business is continued
1) To have the value of his interest in the partnership
at the time of dissolution, less damages
ascertained and paid in cash or secured by bond
approved by the court; and

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2) To be released from all existing and future
liabilities of the partnership.
In ascertaining the value of the partner's interest
the value of the goodwill of the business shall
NOT be considered.
Rights of injured partner where partnership contract rescinded
1) Right of a lien on, or retention of, the surplus of partnership
property after satisfying partnership liabilities for any sum of
money paid or contributed by him;
2) Right to subrogation in place of partnership creditors after
payment of partnership liabilities; and
3) Right of indemni cation by the guilty partner against all
debts and liabilities of the partnership.
Rules in settling accounts between partners
1) Assets of the partnership. —
a) Partnership property + Goodwill; AND
b) Contributions of the partners necessary for the payment
of all liabilities.
2) Order of application of the assets. —
a) Those owing to partnership creditors;
b) Those owing to partners other than for capital and pro ts,
such as loans given by partners or advances for business
expenses;
c) Return of capital contribution of partners;
Rights of creditors of dissolved partnership which is continued
d) Pro ts.
Reviewer
3) Right of a partner where assets insu cient. — The
following shall have the right to enforce the contributions
a) Any partner or his legal representative, to the extent of the
amount which he has paid in excess of his share of the
liability;
b) An assignee for the bene t of creditors; or
c) Any person appointed by the court
4) Liability of deceased partner’s individual property. —
shall be liable for his share of the contributions necessary to
satisfy the liabilities incurred while he was a partner.
5) Priority to payment of partnership creditors/ partners’
creditors. — When partnership property and the individual
properties of the partners are in possession of a court for
distribution
a) partnership creditors shall have priority
partnership property; and
b) separate creditors on individual property.
This is otherwise known as the doctrine of the
marshalling of assets.
6) Distribution of property of insolvent partner. — his
individual property shall be distributed as follows:
a) To those owing separate creditors;
b) To those owing to partnership creditors; and
c) To those owing to partners by way of contribution.
1) Equal rights of dissolved and new partnership creditors.
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2) Liability of persons continuing the business. — shall be
satis ed out of the partnership property only, unless there
is a stipulation to the contrary.
3) Prior right of dissolved partnership creditors as against
purchaser. — When a retiring or deceased partner has sold his
interest without a nal settlement with partnership creditors,
such creditors have an equitable lien on the consideration
paid to the retiring or deceased partner by the purchaser.
The lien comes ahead of the separate creditors of said partner.
Rights of retiring, or of estate of deceased, partner
when business is continued
1) To have the value of the interest of the retiring or deceased
partner in the partnership ascertained as of the date of
retirement or death; AND
on 2) To receive thereafter, as an ordinary creditor, an amount
a) equal to the value of his share in the dissolved
partnership
b) with interest,
c) or, at his option, in lieu of interest, the pro ts
attributable to the use of his right.
D Limited Partnership
De nition and Requirements
A limited partnership is one formed by two or more persons,
having as members
1. one or more general partners AND
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2. one or more limited partners. 1) Sign and swear to a certi cate; GR: Unless he is a general partner, a limited partner is NOT a
The limited partners as such shall not be bound by the obligations proper party to proceedings by or against a partnership
2) File for record the certi cate in the O ce of the SEC.
of the partnership. EXC: Where the object is to enforce a limited partner's right against
A limited partnership is formed if there has been substantial
As to General Limited or liability to the partnership.
compliance in good faith with the foregoing requirements.
Status of person erroneously believing
Extends only to capital If there is no substantial compliance, the partnership becomes a
Liability Personally liable himself to be a limited partner
contribution general partnership as far as third persons are concerned, in
A person who has contributed to a partnership erroneously believing
which ALL members are liable as general partners.
Management ✔ ✘ that he has become a limited partner, is NOT personally liable as a
When does a limited partner become liable as a general general partner, provided:
Money, property or partner?
Contribution At least money or property a) On ascertaining the mistake he promptly renounces his
industry 1. If his surname appears in rm name; interest in the pro ts of the business, or other compensation
NO unless also a general 2. If he takes part in the control of the business. by way of income;
To proceedings by partner, or where the object b) His surname does NOT appear in the partnership name; and
Proper Party or against the is to enforce his right Limited partner; speci c rights
c) He does NOT participate in the management of the business.
partnership against, or liability to, the 1) To require that the partnership books be kept at the principal
partnership. place of business; Transactions of limited partner with the partnership
2) To inspect and copy at a reasonable hour partnership books 1) Allowable transactions.—
Does not make
or any of them;
Assignment of assignee new partner a) Grant loans to the partnership;
Freely assignable
interest without consent of 3) To demand true and full information of all things a ecting
b) Transacting other business with it; and
others. the partnership;
c) Receiving a pro rata share of the partnership assets with
Name in firm ✔ ✘ 4) To demand a formal account of partnership a airs whenever
general creditors if he is not also a general partner.
circumstances render it just and reasonable;
Absolutely or 2) Prohibited transactions. —
Other business No prohibition 5) To ask for dissolution and winding up by decree of court;
relatively prohibited a) Receive or hold as collateral security any partnership
6) To receive a share of the pro ts or other compensation by way
property; or
Retirement, death, insanity, of income;
Dissolution ✔ insolvency DOES NOT b) Receive payment, conveyance or release from liability if it
7) To receive the return of his contribution provided there is a
dissolve will prejudice the right of third persons.
surplus.
Statutory requirements

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IF at the time the assets of the partnership are not
su cient to discharge partnership liabilities to persons
not claiming as general or limited partners.
Any violation of the prohibition will give rise to the
presumption that it has been made to defraud
partnership creditors.
Return of contribution
GR: A limited partner only has the right to demand and receive
CASH for his contribution, whether he contributed money or
property.
EXC: When there is stipulation to the contrary in the certi cate; or
Where ALL partners consent to the return other than in form
of cash.
When may a limited partner have the partnership dissolved?
Upon petition with the court:
a) When his demand for the return of his contribution is
denied although he has a right to such return; or
b) When his contribution is not paid because the other
liabilities of the partnership have not been paid or the
partnership property is insu cient for their payment.
Before seeking judicial redress, he may rst ask the other partners to
The liabilities may be waived or compromised,
have the partnership dissolved.
provided the waiver or compromise:
Limited partner; liabilities
1) To the partnership —
a) For the di erence between his contribution as actually
made and that stated in the certi cate as having been
made, and
Reviewer
b) For any unpaid contribution which he agreed in the
certi cate to make in the future at the time and on the
conditions stated in the certi cate.
2) To partnership creditors and other partners — becomes
liable for partnership obligations when
a) He contributes services, instead of only money or
property;
b) He allows his surname to appear in the rm name;
c) He fails to have a false statement in the certi cate
corrected, knowing it to be false;
d) He takes part in the control of the business;
e) He receive partnership property as collateral security,
payment, conveyance, or release in fraud of partnership
creditors; and
f) There is failure to substantially comply with the legal
requirements governing the formation of limited
partnerships.
3) To separate creditors — Charging order — The interest
may be redeemed with the separate property of any
general partner, but may NOT be redeemed with
partnership property.
1) Is made with unanimous consent; and
2) Does not prejudice partnership creditors who extended
credit or whose claims arose before the cancellation or
amendment of the certi cate.
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Limited partner; assignee to substituted
A substituted limited partner is a person admitted to all the
rights of a limited partner who has died or has assigned his interest
in a partnership.
An assignee, who does NOT become a substituted limited partner, has
1. NO right to
a. require any information or
b. account of the partnership transactions or
c. to inspect the partnership books;
2. He is only entitled to
a. receive the share of the pro ts or other compensation by
way of income, or
b. the return of his contribution, to which his assignor
would otherwise be entitled.
What are the requisites for an assignee to
become a substituted limited partner?
1) Unanimous consent of all members; or if the limited partner
is empowered by the certi cate, must give the assignee the right
to become a limited partner;
2) The certi cate must be amended; and
3) The amended certi cate must be registered in the SEC.
GR: A substituted limited partner is liable for all the liabilities of his
assignor;
EXC: Those of which he was ignorant at the time he became a
limited partner and which could not be ascertained from the
certi cate.
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Limited Partnership; Dissolution Under Article 1868, a contract of agency is one whereby “a
person binds himself to render some service or to do something in
The partnership liabilities shall be settled in the following order:
representation or on behalf of another, with the consent or
1) Those due to creditors, including limited partners, authority of the latter.”
except those on account of their contributions, in the order of 2. Objective. Its aim is to extend the personality of the principal or
priority as provided by law; the party for whom another acts and from whom he or she derives
the authority to act. [Westmont Investment Corp. v. Francis, Jr.
2) Those to limited partners
2011]
a) in respect to their share of the pro ts and other
compensation by way of income on their contributions; 3. Elements of the Contract of Agency
b) in respect to the capital of their contributions; a) Consent, express or implied, of the parties to establish the
relationship;
3) Those to general partners
b) Object, which is the execution of juridical acts in relation
a) other than for capital and pro ts; to third parties;
b) in respect to pro ts; c) Agent acts as a representative and not for himself; and
c) in respect to capital. (NB: in general partnership, capital d) Agent acts within the scope of his authority.
enjoys preference over pro ts)
4. Subject Matter — Service – Execution of Juridical Acts in
Behalf of Principal and Within the Scope of Authority
VIII Agency
No contract of agency exists where a common carrier leases the
Nature, form and kinds trucks of another carrier, for there is no power of representation by
one with respect to the other and neither was there any authority
Obligations of the Agent
to represent the other by the terms of the arrangements.
Obligations of the Principal [Loadmasters Customs Services v. Glodel Brokerage Corp. 2011]
Modes of Extinguishment 5. Essential Characteristics of Agency
a. Nominate and Principal. — Acts done by one person in
A Nature, form and kinds behalf of another who authorized such acts is the essential
nature of agency.
1. Definition; Parties in an Agency Relationship
b. Unilateral and Primarily Onerous (Art 1875). — Agency is
presumed to be for compensation; when agent performs
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services for principal at latter’s request, principal’s intent to
compensate the agent will be inferred from the principal's
request for the agent’s service. [Urban Bank v. Peña 2011]
c. Consensual (Arts 1869 and 1870). — Such a relationship can
only be e ected with the consent of the principal, which must
not, in any way, be compelled by law or by any court.
An agency may be expressed or implied from the principal’s
act, from his silence or lack of action, or failure to repudiate
the agency. [Litonjua, Jr. v. Eternit Corp]
d. Personal, Representative and Derivative (Art 1868). —
The authority of the agent emanates from the powers granted
to him by his principal; his act is the act of the principal if
done within the scope of the authority. Consequently, agency
is extinguished by the death of the principal or agent. [Rallos v.
Felix Go Chan & Sons Realty Corp.]
Consequently:
Art. 1897 reinforces the doctrine that an agent is not
personally liable to the party with whom he contracts; it is the
principal who is liable on the contracts of the agent. [Eurotech
Industrial Technologies, Inc. v. Cuizon]
When an agent purchases the property in bad faith, the
principal is deemed a purchaser in bad faith. [Caram, Jr. v.
Laureta]
Under the principle that knowledge of agent is knowledge
by principal, spouses cannot contend lack of knowledge of
the rules upon which they received their tickets from the
airline company since their travel agent, who handled their
travel arrangements, was duly informed by the airline
representatives. [Air France v. CA]
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e. Fiduciary and Revocable. — The relations of an agent to his
principal are duciary and in regard to the property forming
the subject matter thereof, he is estopped from acquiring or
asserting a title adverse to that of the principal.
Agency is generally revocable as it is a personal contract of
representation based on trust and con dence reposed by the
principal on his agent. [Republic v. Evangelista]
f. Agency Is a “Preparatory Contract.”
6. Doctrine of “Efficient Procuring Cause” — In agencies to sell
where the entitlement of the commission is subject to the
successful consummation of the sale with the buyer located by the
agent, said agent would still be entitled to the commission on sales
consummated after the expiration of his agency when the facts
show that the agent was the “e cient procuring cause in bringing
about the sale”. [Pratts v. CA]
7. There is no agency relationship existing in a tenancy
arrangement over agricultural land. [Jusayan v. Sombilla 2015]
8. How Agency May be Constituted (Art 1869)
a. From Side of the Principal (Art 1869)
Where the principal has acquiesced in the act of his agent for a
9. Kinds of Agency
long period of time, and has received and appropriated to his
own use the bene ts resulting from the acts of his agent,
courts cannot declare the acts of the agent null and void.
b. From Side of the Agent (Arts 1870, 1871 and 1872)
Whether or not an agency has been created is determined by
the fact that one is representing and acting for another. The
law makes no presumption of agency; proving its existence,
nature and extent is incumbent upon the person alleging it.
[Urban Bank v. Peña 2011]
Reviewer
c. From Side of Third Parties (Arts 1873, 1408, 1921, 1922)
i. Agency Is Not Presumed to Exist
Persons dealing with an agent must ascertain not only the
fact of agency, but also the nature and extent of the agent’s
authority. A third person with whom the agent wishes to
contract on behalf of the principal may require the
presentation of the power of attorney, or the instructions
as regards the agency. [Salvador v. Rabaja 2015]
ii. Agency by Estoppel With Respect to Third Parties
When the law rm has allowed for quite a period the
messenger of another o ce to receive mails and
10. General Powers of Attorney (Art 1877)
correspondence on their behalf, an implied agency had
been duly constituted, specially when there is no showing
that counsel had objected to such practice or took steps to
put a stop to it. [Equitable PCI-Bank v. Ku]
An agency by estoppel, which is similar to the doctrine
of apparent authority, requires proof of reliance upon
the representations, and that, in turn, needs proof that the
representations predated the action taken in reliance.
[Country Bankers Insurance v. Keppel Cebu 2012]
a. Based on Business or Transactions Encompassed (Art
1876): General or Universal vs Special or Particular
i. Universal agent is authorized to do all acts for his
principal which can lawfully be delegated to an agent;
such an agent may be said to have universal authority.
ii. General agent is authorized to do all acts pertaining to a
business of a certain kind or at a particular place, or all acts
pertaining to a business of a particular class or series.
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iii. Special agent is authorized to do some particular act or to
act upon some particular occasion; he acts usually in
accordance with speci c instructions or under limitations
necessarily implied from the nature of the act to be done.
b. Whether It Covers Legal Matters: Attorney-at-Law vs
Attorney-in-Fact
An attorney cannot, without a client’s authorization, settle the
action or subject matter of the litigation, even when he
believes that such a settlement will best serve his client’s
interest. [Phil. Aluminum Wheels, Inc. v. FASGI Enterprises,
Inc.]
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
may consider appropriate, or even though the agency should
authorize a general and unlimited management. [Yoshizaki v. Joy
Training Center of Aurora, Inc. 2013]
“Acts of Administration” means to perform acts which the
principal himself may pursue in the ordinary course of the
business, thus:
a. When agent has been given general control and management
of the business, he is deemed to have power to employ such
agents and employees as are usual and necessary in the conduct
of the business, and needs no SPA for such purpose.
b. A co-owner who is made an attorney-in-fact, with the same
power and authority to deal with the property which the
principal might or could have had if personally present, may
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retain the services of legal counsel to preserve the ownership
and possession of the principal’s property.
c. Power of administration does not include dispositions or
encumbrances which are acts of strict ownership. [Sps Aggabao
v. Parulan Jr. 2010]
11. Special Powers of Attorney
Even when the instrument's title is “General Power of Attorney,”
but its operative clause contains an authority to sell, it constituted
the requisite SPA to sell a piece of land. Thus, there was no need to
execute a separate and special power of attorney. [Veloso v. CA]
12. Cases Where SPA Necessary (Art 1878)
As long as the mandate is express, such authority may be either
oral or written. [Patrimonio v. Gutierrez 2014]
a. With Respect to Matters Involved in Litigation
Involving the Principal
a) To Compromise;
b) To Submit Questions to Arbitration;
c) To Renounce the Right to Appeal from a Judgment;
d) To Waive Objections to the Venue of an Action;
e) To Abandon a Prescription Already Acquired.
Power to Compromise Excludes Power to Submit to Arbitration;
Vice Versa (Art 1880)
b. With Respect to Money or Funds of the Principal
a) To Make Payments that “Are Not Usually Considered
as Acts of Administration”
The payment of claims by the area manager of an
insurance company is not an act of administration. Thus,
Reviewer
the amounts paid by the area manager to settle such claims
cannot be reimbursed from the principal insurance
company. [Dominion Insurance Corp. v. CA]
b) To Collect or Receive Payments on Behalf of the
Principal
A salesman with authority to collect money for his
principal does not have the implied authority to indorse
checks received in payment. [Insular Drug v. PNB]
c) To Loan or Borrow Money
EXC: Agent may borrow money when it is urgent and
indispensable for the preservation of the things
which are under administration. [Yasuma v. Heirs
of De Villa]
Entrusting by the principal of blank pre-signed checks to
the agent does not give the agent the implied authority to
enter into a loan in the name of the principal. [Patrimonio
v. Gutierrez]
c. With Respect to Obligations Due to/From the Principal
a) to e ect novations which put an end to obligations
already in existence at the time the agency was constituted;
b) to waive any obligation gratuitously;
c) to ratify or recognize obligations contracted before the
agency.
d. With Respect to Immovable Properties
a) To enter into any contract by which ownership of an
immovable is transmitted or acquired, gratuitously or for a
valuable consideration.
b) Sale of a Piece of Land or Interest Therein (Art 1874)
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The compromise agreement is void for the power to sell
by way of compromise could not be implied to protect the
interests of the principal to secure possession of the
properties. [Cosmic Lumber v. CA]
Any sale of real property by one purporting to be the
agent of the registered owner without any authority
therefore in writing from the said owner is null and void.
[Litonjua v. Fernandez]
However, we apply the estoppel principle to enforce the
sale with respect to the principal. [Pahud v. CA]
As a general rule, an agency may be oral; however, Art
1874 provides that the contract of agency must be
written for the validity of the sale of a piece of land or any
interest therein; otherwise, the sale shall be void. Art 1878
states that SPAs are necessary to convey real rights over
immovable properties. [Yoshizaki v. Joy Training Center of
Aurora, Inc. 2013]
c) Agents Cannot Buy Property of Principal Unless
Authorized (Art 1491[2])
d) Power to Sell Excludes Power to Mortgage, Vice
Versa (Art 1879)
e) To Lease Real Property for More Than One Year
Such is considered not merely an act of administration but
an act of strict dominion or of ownership. [Shopper’s
Paradise Realty v. Roque]
e. With Respect to Speci c Contracts “Deemed Personal”
to the Principal
a) To Accept or Repudiate an Inheritance;
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b) To Make Gifts;
c) To Bind the Principal to Render Some Service
Without Compensation;
d) To Bind the Principal in a Contract of Partnership;
e) To Obligate the Principal as a Guarantor or Surety.
A power of attorney authorizing agent to bind principal
to a surety bond to a particular entity, cannot be relied
upon as su cient authority to a surety bond issued to
other persons or entity. [Country Bankers Insurance v.
Keppel Cebu 2012]
f. Any Other Act of Strict Dominion
13. Doctrine of Implied Powers Emanating from Express Powers
Speci c grants of “Powers of Dominion” necessarily includes
those implied powers or those necessary to ful ll those powers of
ownership granted, thus:
a. Empowering the agent to sell hemp in a foreign country,
carries with it implied power to make and enter into the usual
and customary contract for its sale, which may provide for
settlement of issues by arbitration. [Robinson Fleming v. Cruz]
b. An SPA to make an assignment of credits, hire lawyers to take
charge of actions necessary or expedient for principal’s
interests, and defend suits brought against principal,
necessarily implies authority to pay for professional services.
[Municipal Council of Iloilo v. Evangelista]
c. SPA to sell “for such price or amount” is broad enough to
cover exchange in the Deed of Assignment between the
properties and the corresponding corporate shares in a
corporation, with the latter replacing the cash equivalent of
Reviewer for the 2022 Bar
the option money initially agreed to be paid by the
b. Primary Obligation of Agent Is to Carry Out Agency in
corporation under the MOA. [Hernandez-Nievera v.
Accordance with Principal’s Instructions (Art 1887)
Hernandez 2011]
If agent followed instructions, principal cannot set-up agent’s
B Obligations of the Agent ignorance or circumstance which principal was/ought to have
been aware of. (Art 1899)
1. General Obligation of Agent Who Accepts the Agency
c. E ects of Acts Done Within the Scope of Agent’s
Agent is bound to carry agency to its completion for the bene t of
Authority:
principal (Art 1884); otherwise, the agent will be liable for
damages which the principal may su er due to non-performance. Valid, and Principal Is the One Liable; Agent Is Not
Personally Liable (Art 1881)
Agent who withdraws from the agency (Art 1929) must continue
to act until principal takes necessary steps to meet the situation. Under Art 1881, when agent acts within the scope of
authority, principal is bound by acts e ected in his behalf,
In the event of death of principal (Art 1919[3]), agent must nish
whether or not third person dealing with the agent believes
business already begun should delay entail any danger – even if the
that the agent has actual authority. [Sargasso Const. & Dev.
principal's death extinguishes the agency.
Corp. v. PPA 2010]
2. Obligation of Agent Who Declines Agency Who Has
The legal impact of Art 1881 is that the agent is granted the
Custody of Goods
right “to a ect the legal relations of his principal by the
Agent must observe due diligence in the custody and preservation performance of acts e ectuated in accordance with the
of the goods until new agent appointed (Art 1885). principal's manifestation of consent.” [Pacific Rehouse Corp. v.
3. Duty of Obedience EIB Securities, Inc. 2010]
d. E ects When Agent’s Act Beyond the Scope of His
a. Agent Must Act “In the Name of the Principal, Within
the Scope of His Authority” (Art 1881) Authority: Unenforceable, Not Void; Unless Principal
Ratifies (Arts 1317, 1403 and 1898)
i. Act deemed to have been performed within the scope
When third person knows that the agent was acting beyond
of agent’s authority, if such act is within the terms of
his power or authority, the principal cannot be held liable for
the written power of attorney, even if in fact the agent
the acts of the agent. He is not entitled to recover damages
exceeded the limits of the authority according to the
private understanding with the principal. (Art 1900) from the agent, unless the latter undertook to secure the
principal’s rati cation.
ii. Authority of agent shall not be deemed exceeded if
Even when an attorney-at-law in forging a compromise
performed in a manner more advantageous to
agreement, had exceeded his authority in inserting a penalty
principal. (Art 1882)
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clause, same is not void but merely unenforceable. Client’s
failure to question the inclusion of the penalty clause despite
several opportunities was tantamount to rati cation. [Borja,
Sr. v. Sulyap, Inc.]
e. E ects When Agent Acts in His Own Name (Art 1883):
i. Principal has no right against third person contracting
with agent;
ii. Agent is directly bound to third person as if the
transaction were his own;
EXC: When contract involves things belonging to
principal.
4. Duty of Diligence
Where holder of an exclusive and irrevocable power of attorney to
make collections, failed to collect the sums due to principal and
thereby allowed the allotted funds to be exhausted by other
creditors, such agent has failed to act with the care of a good father
of a family required under Art 1887 and became personally liable
for the damages which the principal may su er through his
non-performance. [PNB v. Manila Surety]
Well-settled is the rule that an agent is also responsible for any
negligence in the performance of its function (Art 1909) and is
liable for the damages which the principal may su er by reason of
its negligent act. (Art 1884) [British Airways v. CA]
5. Duty of Loyalty
a. Agent Shall Be Liable for Damages Sustained by the
Principal Where in Case of Con ict-of-Interests
Situations, He Should Prefer His Own Interest (Art
1889)
b. Agent Is Prohibited from Buying Property Entrusted to
Him for Administration or Sale Without Principal’s
Consent (Art 1491[2]).
When an agent is involved in the perpetration of fraud upon
his principal for his extrinsic bene t, he is not really acting for
the principal but is really acting for himself, entirely outside
the scope of his agency. [Cosmic Lumber v. CA]
c. Agent Obliged to Render an Accounting to the Principal
of All Matters Relating Agency (Art 1891)
An agent can assert, as against his own principal, an
independent, autonomous, right to retain money or goods
received in consequence of the agency; as when the principal
fails to reimburse him for advances he has made, and
indemnify him for damages su ered without his fault.
[Chua-Burce v. CA] Consequently:
i. An insurance agent is guilty of estafa for failing to deliver
sums of money paid to him as agent for the account of his
employer.
ii. A traveling sales agent who misappropriated or failed to
return to his principal the proceeds of the things or goods
he was commissioned or authorized to sell, is liable for
estafa.
iii. Whereas, a bank teller or cash custodian, being merely an
employee of the bank, cannot be held liable for estafa, but
rather for theft.
Submission by administrator of four letter reports during the
entire 18 years that he was administering the property can
hardly be considered as su cient to keep the principal
informed and updated of the condition and status of the
latter’s properties. [Sazon v. Vasquez-Menancio 2012]
d. Rule If Agent Is Empowered to Borrow/Lend Money
(Art 1890)
i. if empowered to borrow money, he may be the lender at
current interest rates;
ii. if empowered to lend money, he cannot borrow without
principal’s consent.
e. Agent Is Liable to the Principal For Interests (Art 1896)
i. on sums he applied to his own use (from the time he used
them)
ii. on sums owing the principal (from the time agency is
extinguished)
6. Agent Has No Obligation to Advance Funds (Art 1886)
It is principal’s obligation to advance the funds, but principal to
pay interest on advances made by agent from day advances made.
(Art 1912)
EXC:
1) If Stipulated in the Agency Agreement;
2) Principal Is Insolvent; Insolvency Extinguishes the Agency
(Art 1919[3])
7. Power of Agent to Appoint a Sub-Agent (Art 1892)
a. GR: Agent must act himself, but may appoint a
not-prohibited substitute. Agent is responsible for acts of
substitute when:
i. Agent was not expressly given the power to appoint a
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 Civil Law and Practical Exercises
ii. Agent was given the power, but without designating the
person and the substitute was notoriously incompetent or
was insolvent.
b. All Acts of Substitute Appointed Against Principal’s
Prohibition Are VOID as to the Principal.
Where the SPA to sell a piece of land contains a prohibition to
appoint a substitute, but agent appoints a substitute who
executes the deed of sale in name of the principal, while the
agent may have acted outside the scope of his authority, that
did not make the sale void, but merely unenforceable under
the second paragraph of Art 1317. Acceptance of the proceeds
thereof are tantamount to rati cation thereof. [Escueta v.
Lim]
8. Liability When Two or More Agents Appointed by the Same
Principal: Responsibility of Agents NOT Solidary (Art 1894)
EXC: Where two or more agents agree to be solidarily bound
(Art 1895)
Compare: Two principals with common agent – Principals
Solidarily Liable (Art 1915).
9. Rule on Liability Rules to Third Parties: Agent Not Bound
to Third Parties; It Is the Principal Who Is Bound by the
Contracts Entered Into By the Agent (Art 1897)
a. Except When Agent Expressly Binds Himself (Art 1897)
When the previous agent of the union bound itself personally
liable on the contracts of the union, the new agent is not
bound by the assumption undertaken by the original agent.
[Benguet v. BCI Employees]
10. Obligation Rules for Commission Agents: Sales on
Reviewer
b. Except When Agent Exceeds Authority Without Giving
Notice of Limited Powers (Art 1897) – Only the Agent Is
Liable, Principal Is Not Liable Unless He Ratifies.
Where an agent de es the instructions of its principal in New
York not to proceed with the sale due to non-availability of
carriage, it has acted without authority or against its principal’s
instructions and holds itself personally liable for the contract it
entered into with the local company. [National Power v.
NAMARCO]
c. Except When Agent Acts with Fraud or Negligence:
Solidarily Bound with Principal
Every principal is subject to liability for loss caused to another
by the latter’s reliance upon a deceitful representation by an
agent in the course of his employment
i. if the representation is authorized;
ii. if it is within the implied authority of the agent to
make for the principal; or
iii. if it is apparently authorized, regardless of whether the
agent was authorized by him or not to make the
representation. [Pahud v. CA]
d. Agent Is Criminally Liable for Crime Committed in the
Pursuit of the Agency
The Law on Agency has no application in criminal cases, and
no man can escape punishment when he participates in the
commission of a crime upon the ground that he simply acted
as an agent of any party. [People v. Chowdhury]
Consignment Arrangements
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a. Commission Agent Responsible for Goods Received
According to Terms and Conditions and as Described in
Consignment (Art 1903)
EXC: When Has Made Written Statement of Damage/
Deterioration (Art 1903)
In sale on consignment, as a form of agency,
consignee-agent is relieved from his liability to return the
goods received from the consignor-principal when it is shown
by preponderance of evidence that the goods were taken from
the custody of the consignee by robbery, and no separate
conviction of robbery is necessary to avail of the exempting
provisions under Art 1174 for force majeure. [Austria v. CA]
b. Agent Handling Various Goods for Di erent Owners
(Art 1904): He Must Distinguish Them by Countermarks If
Goods of Same Kind and Mark
c. Commission Agent Cannot Sell on Credit Without
Principal’s Consent (Art 1905)
Otherwise: Considered as Cash Sales.
Under Art 1905, without the express or implied consent of
principal, commission agent cannot sell on credit; should it do
so principal may demand from him payment in cash. [Green
Valley v. IAC]
d. When With Principal’s Authority to Sell on Credit (Art
1906)
i. Inform the Principal with Statement of Buyer’s Names;
ii. E ect of Non-Compliance – Considered Cash Sale.
e. E ect When Agent Receives Guaranty or Del Credere
Commissions (Art 1907)
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Civil Law and Practical Exercises
i. He Shall Bear the Risk of Collection;
ii. He Shall Pay Principal the Proceeds on Same Terms
Agreed with Purchaser.
f. Liability for Failure to Collect Principal’s Credit When
Due (Art 1908)
i. Liability for Damages;
ii. Unless Due Diligence Proven.
C Obligations of the Principal
1. Obligations of Principal With Third Parties with Whom
the Agent Contracts
a. The Principal Is Bound By the Contracts Entered Into
by the Agent:
Where authorized agent failed to indicate in the mortgage that
she was acting for and on behalf of her principal; and the
REM explicitly shows on its face that it was signed by agent in
her own name and in her own personal capacity. Thus,
consistent with the law on agency, the principal cannot be
bound by the acts of the agent. The third-party bank has no
one to blame but itself. [Bucton v. Rural Bank of El Salvador,
Inc. 2014]
b. As far as third persons are concerned, an act is deemed to have
been performed within the scope of the agent’s authority, if
such is within the terms of the power of attorney, as written,
even if the agent has in fact exceeded the limits of his authority
according to an understanding between the principal and his
agent. [Eugenio v. CA] Consequently:
Reviewer
i. Spouses Rabaja required her presentation of the power of
attorney before they transacted with her principal. And
when Gonzales presented the SPA to Spouses Rabaja, the
latter had no reason not to rely on it. [Salvador v. Rabaja
2015]
ii. A person who deliberately ignores a signi cant fact that
could create suspicion in an otherwise reasonable person is
not an innocent purchaser for value. [Bank of Commerce v.
San Pablo, Jr.]
iii. Undue haste in granting the loan without inquiring into
the ownership of the subject properties being mortgaged,
as well as the authority of the supposed agent to constitute
the mortgages on behalf of the owners, bank accepting the
mortgage cannot be deemed a mortgagee in good faith.
[San Pedro v. Ong]
c. Principal Not Bound to Contracts Entered Into By
Agent Outside of His Authority (Arts 1898 and 1910)
i. When Principal Ratifies, Expressly or Impliedly (Art
1901)
For rati cation to take place, it is required that the
principal must have full knowledge at the time of
rati cation of all the material facts and circumstances
relating to the unauthorized act of the person who
assumed to act as agent.
Nevertheless, this principle does not apply if the
principal’s ignorance of the material facts and
circumstances was willful, or that the principal chooses
to act in ignorance of the facts. [Manila Memorial
Park Cemetery, Inc. v. Linsangan]
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Even when the agent exceeds his authority, the principal is
still solidarily liable together with the agent if the
principal allowed the agent to act as though the agent had
full powers. [Filipinas Life Assurance Co. v. Pedroso]
Under Arts 1898 and 1910, agent’s act done beyond the
scope of authority may bind principal if he rati es them,
whether expressly or tacitly. Only the principal, and not
the agent, can ratify the unauthorized acts, which the
principal must have knowledge of. [Country Bankers
Insurance v. Keppel Cebu 2012]
ii. Third Person Cannot Set-up Facts of Agent’s
Exceeding Authority Where Principal Ratified or
Signified Willingness to Ratify Agent’s Acts (Art
1901)
In an expropriation proceeding, the State cannot raise the
alleged lack of authority of the counsel of the owner to
bind his client in a compromise agreement because such
lack of authority may be questioned only by the
principal or client. [Commissioner of Public Highways v.
San Diego]
Doctrine of Apparent Authority
The doctrine of apparent authority focuses on two factors:
1. first the principal’s manifestations of the existence of
agency which need not be expressed, but may be
general and implied; and
2. second, is the reliance of third persons upon the
conduct of the principal or agent.
Under the doctrine, the question in every case is whether the
principal has by his voluntary act placed the agent in such a
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situation that a person of ordinary prudence, conversant with

business usages and the nature of the particular business, is
justified in presuming that such agent has authority to perform
the particular act in question. [Professional Services, Inc. v. CA]
Easily discernible from the foregoing is that apparent
authority is determined only by the acts of the principal
and not by the acts of the agent. The principal is, therefore, not
responsible where the agent’s own conduct and statements
have created the apparent authority. [Sargasso Const. & Dev.
3. Obligations of
Corp. v. PPA 2010]
There is no basis to apply the doctrine where there is no
evidence showing manner by which the supposed principal has
“clothed” or “held out” its branch manager as having the
power to enter into an agreement, as claimed by petitioners.
[Banate v. Philippine Countryside Rural Bank 2010]
Agency by Estoppel
Article 2180 does not make the principal vicariously liable for the 1. How and When Agency Extinguished (Art 1919)
tort committed by its agent’s employees and the principal-agency
a. By Principal’s Revocation (Express or Implied) of the
relationship per se does not make the principal a party to such tort;
Agency;
hence, the need to prove the principal’s own fault or
negligence. [Sps Viloria v. Continental Airlines, Inc. 2012] b. By Agent’s Withdrawal from the Agency;
c. By Death, Civil Interdiction, Insanity or Insolvency of
cf: As far as the dealer was concerned with regard to the terms of
the Principal or the Agent;
the dealership contract, acts of Villaruz and his employees are also
acts of Petron. [Petron Corp. v. Sps Jovero 2012] d. By Dissolution of the Juridical Entity Which Entrusted or
the Principal Within the Agency Accepted the Agency;
Arrangement e. By the Accomplishment of the Object or Purpose of the
a. to Pay Agent’s Compensation (Art 1875) Agency;
b. to Advance Sums Requested for Execution of Agency f. By the Expiration of the Period for Which Agency Was
(Art 1912) Constituted.
2. Express Revocation: The Principal May Revoke an “Agency
i. Agent has right to reimbursement for expenses advanced
including interest from the day it was advanced. at Will”

Even when an agent of real estate company acts unlawfully and ii. Where principal not liable to agent for expenses incurred a. In which case, principal may compel agent to return the
outside the scope of authority, the principal can be held liable (Art 1918) document evidencing the agency (Art 1920).
when by its own act it accepts without protest the proceeds of b. In case of multiple principals, any of the principals can revoke
c. to Indemnify Agent for Damages Sustained in Pursuing
the sale of the agents. In such case the liabilities of both the the authority of their common agent, without the consent of
Agency (Art 1913)
principal and the agent is solidary. [Manila Remnants v. the others (Art 1925).
CA] d. Agent’s Right To Retain Object as Pledge for Advances
and Damages (Art 1914) 3. Implied Revocation
For one to successfully claim the bene t of estoppel on the
i. Agent bound to deliver to principal everything received, a. Appointment of New Agent for Same Business/
ground that he has been misled by the representations of
even if not due the principal (Art 1891). Transaction (Art 1923)
another, he must show that he was not misled through his
own want of reasonable care and circumspection. [Country ii. Thing pledged may be sold only after demand of amount i. Impliedly Revoked as to Agent Only;
Bankers Insurance v. Keppel Cebu 2012] due (Art 2122). ii. As to Third Persons, Notice to Them Necessary (Art
2. Liability of Principal to Third Persons for Acts of the 1922)
Agent’s Employees D Modes of Extinguishment b. Principal Directly Manages Business Entrusted to Agent
(Art 1924)

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 Civil Law and Practical Exercises
Even if purported agent is considered to have been constituted
as an agent to sell the re truck, such agency would have been
deemed revoked upon resumption of direct negotiations
between seller-principal and the municipality, the
purported agent having in the meantime abandoned all e orts
to secure the deal in the seller’s behalf. [Guardex v. NLRC]
Damages are generally not awarded to the agent for the
revocation of the agency, and the case at bar is not one falling
under the exception mentioned, which is to evade the
payment of the agent’s commission. [CMS Logging v. CA]
4. Cases of Irrevocable Agencies (Art 1927): “Agency Coupled
with Interest”
a. When a Bilateral Contract Depends Upon the
Continued Existence of the Agency
An exception to the revocability of a contract of agency is when
it is coupled with interest, i.e., if a bilateral contract depends
upon the agency. [Republic v. Evangelista]
b. When It Is the Means of Ful lling an Obligation Already
Contracted
Unlike simple SPAs, an agency coupled with interest
cannot be revoked at will, since it had been created for the
mutual interest of the agent and the principal. [Sevilla v. CA]
There may be cases in which if the authority is withdrawn, the
agent will be exposed to personal loss or liability. [Valenzuela
v. CA]
NASUTRA/SRA executed promissory notes in favor of PNB
every time it availed of the credit line. The agency established is
one coupled with interest which cannot be revoked at will by
any of the parties. [National Sugar Trading v. PNB]
Reviewer for the 2022 Bar
Although the revocation was done in bad faith, respondents 7. Death of the Principal Extinguishes the Agency (Arts 1919[3],
did not act in a wanton, fraudulent, reckless, oppressive or 1931)
malevolent manner. They revoked the SPA because they were
a. When the Agency Continues Despite Death of Principal
not satis ed with the amount of the loan approved. Thus,
(Art 1930)
petitioners are not entitled to exemplary damages. [Ching v.
Bantolo 2012] The death of the principal-debtor did not extinguish the
power of the Bank to sell the property at a public sale; the
Indeed, even an agency coupled with interest may indeed
power to foreclose is not an ordinary agency that contemplates
be revoked on the ground of fraud committed by the agent,
exclusively the representation of the principal by the agent but
which is really an act of rescission, the same must be proven.
is primarily an authority conferred upon the mortgagee for the
[Bacaling v. Muya]
latter’s own protection. [Perez v. PNB]
5. Effects of Revocation on Third Parties — Revocation of
b. Acts Done by Agent Without Knowledge of Principal’s
Agent’s General Powers E ective Against Third Persons (Art
Death (Art 1931) — Acts Are Valid Provided:
1922)
i. Agent Does Not Know of Death or Other Cause of
a. Refers to agency created to deal with the general public;
Extinguishment of Agency;
b. Revocation will not prejudice third persons who deal with the
ii. Third Persons Must Also Be in Good Faith (Not Aware of
agent in good faith and without knowledge of revocation;
Death or Other Cause).
c. However, notice of revocation in a newspaper of general
8. Death of the Agent Extinguishes the Agency (Art 1932):
circulation is su cient warning;
Obligation of Agent’s Heirs in Case of Agent’s Death:
6. Right of Agent to Withdraw from Agency (Art 1928)
i. Notify Principal;
a. By giving due notice to principal;
ii. Adopt Measures as Circumstances Demand in Principal’s
b. Agent to indemnify principal should he su er any damage; Interest.
Unless, withdrawal is due to impossibility of continuing
agency without grave detriment to agent. IX Credit Transactions
c. Even if agent withdraws from the agency for a valid reason, he
Loan
must continue to act until the principal has had reasonable
opportunity to take necessary steps to meet the situation (Art Deposit
1929)
Guaranty and Suretyship
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A Loan Purpose
For use or temporary
For consumption
Under Article 1934 of the Civil Code, a loan contract is perfected
possession only upon the delivery of the object of the contract.
By the contract of LOAN, one of the parties delivers to another a
Property Any Only personal In this case, although petitioners applied for a P3 million loan, only
non-consumable or consumable thing upon the condition that it
the amount of P1 million was approved by the bank because
be returned or that the same amount of the same kind and quality
Ownership transmitted petitioners became collaterally de cient. Thus, the loan contract was
be paid. Risk of loss Bailor retains ownership
to bailee perfected when petitioners received the P1 million loan, which was
Kinds of Loan the object of both the promissory note and the real estate mortgage
Returnable before end executed by petitioners in favor of the bank.
A. Commodatum — where one of the parties (bailor) delivers to Time of Not returnable until
of period in case of
another (bailee) something not consumable so that the latter payment end of period
urgent need
may use the same for a certain time and thereafter returns it. Commodatum
Character of A contract of commodatum is essentially gratuitous. If the
B. Mutuum — where money or other consumable thing is Purely personal Not personal
contract breeding fee be considered a compensation, then the contract
delivered by the lender to the borrower subject to the
would be a LEASE of the bull. (Republic v. Bagtas)
condition that the same amount of the same kind and quality
As to Loan Deposit
shall be paid. Kinds
Characteristics Safekeeping; generally, 1) Ordinary — the bailor can not just demand the return of the
Purpose Use of thing depositary cannot use thing at will because there is a period agreed upon.
1) Real — perfected upon delivery and not by mere consent.
the thing
2) Precarium — bailor may demand return of thing loaned at
2) Unilateral — the borrower has the obligation to return either
Time of Generally, at the end of Can demand return at will under the following conditions:
the same thing or its equivalent.
payment period any time a) If neither the duration of the contract nor the use to
Distinctions
which the thing loaned should be devoted, has been
As to Commodatum Mutuum Compensation of Not applicable to things stipulated; or
Compensation
credits applicable deposited
Money or consumable, b) If the use of the thing is merely tolerated by the owner.
Subject Non-consumable, must One of lender and
the equivalent is to be Juridical One of depositor and Pactum de commodando (Art 1934)
matter be returned borrower; creditor and
returned relations depositary
debtor An accepted promise to deliver something by way of commodatum
May be onerous, as or simple loan is binding upon parties, but the commodatum or
Nature Essentially gratuitous when interest is agreed simple loan itself shall not be perfected until the delivery of the
upon object of the contract.
Sps Palada v. Solidbank 2011
Requisites

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a) Capacity; 2) If he keeps it longer than the period stipulated, or after c) Destruction of the thing
the accomplishment of the use for which the
b) Object; d) Death of parties
commodatum has been constituted;
c) Consideration; e) Ingratitude of the borrower
3) If the thing loaned has been delivered with appraisal of
d) Form. its value, unless there is a stipulation exempting the bailee i) If the bailee should commit some o enses against the
from responsibility in case of a fortuitous event; person, honor or property of the bailor or of his wife or
Characteristics
children under his parental authority.
a) Real — perfected upon delivery of thing by the bailor to the 4) If he lends or leases the thing to a third person, who is
not a member of his household; ii) If the bailee imputes any criminal o ense, or any act
bailee.
involving moral turpitude, even though he should prove
b) Principal — its existence does not depend upon another 5) If, being able to save either the thing borrowed or his own
it, unless the crime or the act has been committed against
contract. thing, he chose to save the latter.
the bailee himself, his wife or children under his authority;
c) Gratuitous — if any compensation is payable for use of thing, Obligations of the Bailor (Arts 1946 - 1952) and
it ceases to be commodatum. a) To pay extraordinary expenses of preservation. iii) If the bailee unduly refuses the bailor support when the
d) Personal — consequently bailee is legally or morally bound to do so.
b) To answer for damages to the borrower
i) Death of either party extinguishes the contract; The bailor who, Simple loan
ii) Bailee can neither lend nor lease the object of the contract 1) knowing the aws of the thing loaned, Mutuum vs Commodatum
to a third person.
2) does not advise the bailee of the same, Producers Bank v. CA. — Thus, if consumable goods are loaned
However, the members of the bailee's household may make only for purposes of exhibition, or when the intention of the
shall be liable to the latter for the damages which he may su er
use of the thing loaned, unless parties is to lend consumable goods and to have the very same
by reason thereof.
1) there is a stipulation to the contrary, or goods returned at the end of the period agreed upon, the loan is a
i) The bailor cannot evade liability by commodatum and not a mutuum.
2) the nature of the thing forbids such use. abandonment of the thing.
Mutuum vs Barter
Obligations of the Bailee (Arts 1941-1945) Termination
As to Mutuum Barter
a) To pay for the ordinary expenses for the use and preservation a) Expiration of time or use stipulated
of the thing loaned. Subject Money or other fungible Non-fungible things
b) Claim of the lender — Lender has urgent need of the thing
b) Liable for the loss of the thing, even if it should be through matter things
loaned, in which case, he may demand its
a fortuitous event:
i) Return, or Nature May be onerous Always onerous
1) If he devotes the thing to any purpose di erent from
ii) Temporary use — commodatum is suspended. E ect There is transfer of In e ect a mutual sale
that for which it has been loaned;

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ownership, but no sale 2) In case it is impossible to deliver the same kind, its value at 1. Deposit in General and its Di erent Kinds
the time of the perfection of the loan shall be paid.
Return of Same thing after No return after mutual Characteristics
thing expiration of period. exchange b) To pay interest. — Requisites in Pan Pacific Service v. Equitable
1) Real;
PCI 2010
Mutuum vs Lease 2) Naturally gratuitous;
Payment of monetary interest is allowed only if:
As to Mutuum Lease 3) Primarily for custody.
1) there was an express stipulation for the payment of
interest; and Nature of rental of safety deposit box
Ownership Transferred to borrower No transfer, only
temporary 2) the agreement for the payment of interest was reduced CA Agro-Industrial v. CA
relinquishment of in writing. The contract for the rent of the safety deposit box is not an
possession to lessee ordinary contract of lease as de ned in Article 1643 of the Civil
We agree with petitioners' interpretation that in case of
default, the consent of the respondent is not needed in order Code. However, the same is NOT a contract of deposit, but a
Nature Unilateral Bilateral
to impose interest at the current bank lending rate. special kind of deposit.
Subject Consumable Non-consumable Here, no competent proof was presented to show that
Matter Interests on loan
respondent Bank was aware of the agreement between the
Interest payable in kind petitioner and the Pugaos to the e ect that the certi cates of title
Juridical Lender and Borrower Lessor and Lessee
In the determination of the interest, if it is payable in kind, its value were withdrawable from the safety deposit box only upon both
relations
shall be appraised at the current price of the products or goods at parties' joint signatures, and that no evidence was submitted to
Requisites the time and place of payment. reveal that the loss of the certi cates of title was due to the
fraud or negligence of the respondent Bank.
1) Consent of parties; Compounding of interest
Sia v. CA
2) Object certain; and GR: Interest due and unpaid shall not earn interest. However, the
contracting parties may by stipulation capitalize the interest SBTC was aware of the oods of 1985 and 1986; it also knew that
3) Cause of the obligation the oodwaters inundated the room where the Safe Deposit Box was
due and unpaid, which as added principal, shall earn new
4) Delivery - for perfection. interest. located. In this respect, it failed to exercise the reasonable care and
prudence expected of a good father of a family, thereby
Obligation of the Borrower Under Article 1959 of the Civil Code, unless there is a
becoming a party to the aggravation of the injury or loss.
a) To return the thing or amount borrowed stipulation to the contrary, interest due should not
further earn interest. 4) Either unilateral or bilateral
i) If not money
5) Non-use by depositary of the thing deposited
1) The debtor owes another thing of the same kind, quantity B Deposit
and quality, even if it should change in value. 6) Object of contractual deposit.

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Kinds 1) Deposit by will of depositor;

Whether or not the petitioner, which is acting as a collecting bank, has
1) Extrajudicial - may either be voluntary or necessary 2) Deposit by two or more claimants. the right to debit the account of its client for a check deposit which was
dishonored by the drawee bank.
or Judicial - brought about by the attachment or seizure of a Requisites
property by court order. Right of Setoff
1) Capacity of the parties;
2) Regular - thing deposited can not be used by depositary Here, purportedly as an act of accommodation to a valued client,
2) Object;
petitioner allowed the withdrawal of the face value of the deposited
or Irregular - thing may be used by depositary.
3) Formalities — may be entered into orally or in writing. check prior to its clearing. That act certainly disregarded the
3) Voluntary - by the will of the parties clearance requirement of the banking system.
Obligations of the Depositary (Arts 1972-1991)
or Necessary - it is made in compliance with a legal obligation
1) To preserve the thing; Earnest Money
OR takes place on the occasion of any calamity.
a. The depositary is liable for the loss of the thing through a Obligation if sale did not materialize — Compania Maritima
Deposit vs Commodatum and Mutuum
fortuitous event: v. CA
As to Deposit Commodatum Mutuum
1. If it is so stipulated; The return of P15,000.00 was but just and proper. That sum was
Purpose Principally for Use of thing Consumption of 2. If he uses the thing without the depositor's tendered to REPUBLIC which together with its
safekeeping thing permission; (PAN-ORIENTAL's) alleged expenses already made on the vessel,
cover 25% of the cost of the vessel, as provided in the option granted
Nature May be onerous1 Always May be onerous 3. If he delays its return; in the bareboat contract. This amount was accepted by the
gratuitous 4. If he allows others to use it, even though he himself Administration as deposit x x x ." Since the purchase did not
may have been authorized to use the same. eventually materialize for reasons attributable to
Object Only movables2 Any Money or
REPUBLIC, it is but just that the deposit be returned. Courts
fungible thing 2) To return the thing.
may issue such orders of restitution as justice and equity may
Demand At will Lapse of period Lapse of period Right of a bank to apply a deposit to the debt of a depositor. — warrant.
Associated Bank v. Tan
1. A deposit is a gratuitous contract, except when there is an Obligations of the Depositor (Arts 1992-1995)
While banks are granted by law the right to debit the value of a
agreement to the contrary, or unless the depositary is engaged 1) If the deposit is gratuitous, the depositor is obliged to
dishonored check from a depositor’s account, they must do so
in the business of storing goods. reimburse the depositary for the expenses he may have
with the highest degree of care, so as not to prejudice the
2. In extra-judicial deposits. depositor unduly. incurred for the preservation of the thing deposited.
2. Voluntary Deposit 2) To pay the compensation agreed upon as consideration for the
deposit.
Kinds

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3) The depositor shall reimburse the depositary for any loss
arising from the character of the thing deposited, unless at the
time of the constitution of the deposit the former was not
aware of, or was not expected to know the dangerous character
of the thing, or unless he noti ed the depositary of the same,
or the latter was aware of it without advice from the depositor.
Security of the Depositary. The depositary may retain the thing in
pledge until the full payment of what may be due him by reason of the
deposit.
Extinguishment
a) General causes
i) Loss or destruction of thing;
ii) Death of party, in case of gratuitous deposit.
YHT Realty v. CA
Whether a hotel may evade liability for the loss of items left with it for
safekeeping by its guests, by having these guests execute written waivers
holding the establishment or its employees free from blame for such loss
in light of Article 2003 of the Civil Code which voids such waivers.
NO.
Art 2003. The hotel-keeper cannot free himself from
responsibility by posting notices to the e ect that he is not liable
for the articles brought by the guest. Any stipulation between
the hotel-keeper and the guest whereby the responsibility of the
former as set forth in Articles 1998 to 2001 is suppressed or
diminished shall be VOID.
Rules Regarding Hotels and Inns
5. The hotel-keeper has a right to retain the things brought
into the hotel by the guest, as a security for credits on account
of lodging, and supplies usually furnished to hotel guests.
Durban Apartments v. Pioneer Insurance and Surety 2011
A contract of necessary deposit existed between the insured See
and petitioner.
The insured See deposited his vehicle for safekeeping with petitioner,
through the latters employee, Justimbaste. In turn, Justimbaste
issued a claim stub to See. Thus, the contract of deposit was
perfected from See's delivery, when he handed over to Justimbaste
the keys to his vehicle, which Justimbaste received with the
obligation of safely keeping and returning it. Ultimately, petitioner is
liable for the loss of See’s vehicle.

b) Other causes 1. The hotel-keeper is liable for the vehicles, animals and articles
4) In common carriers.
which have been introduced or placed in the annexes of the
i) Expiration of period agreed upon;
hotel. 4. Sequestration or Judicial Deposit
ii) Demand at will of depositor;
2. The responsibility shall include the loss of, or injury to the Judicial Deposit (Arts 2005-2009)
iii) Mutual withdrawal from contract; personal property of the guests caused by the servants or
employees of the keepers of hotels or inns as well as strangers; Takes place when an attachment or seizure of property in litigation is
iv) Ful llment of the purpose of deposit; ordered.
but not that which may proceed from any force majeure.
v) Ful llment of resolutory condition. Distinguished from Extra-judicial Deposit
3. The act of a thief or robber, who has entered the hotel is NOT
3. Necessary Deposit deemed force majeure, unless it is done with the use of arms As to Judicial Extra-judicial
or through an irresistible force.
Kinds Source By court order Will of parties
4. The hotel-keeper is not liable for compensation if the loss is
1) In compliance with legal obligations; due to the acts of the guest, his family, servants or visitors, or if Purpose To secure owner’s For safekeeping
2) On the occasion of a calamity; the loss arises from the character of the things brought into the rights
hotel.
3) By transients.
Object Any Personal Property

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knowledge or against the will of the debtor, he can recover

Cause Remuneratory Generally gratuitous The guarantor cannot be compelled to pay the creditor unless the
only insofar as the payment has been bene cial to the debtor.
latter has exhausted all the property of the debtor, and has resorted
Possession For bene t of owner For bene t of depositor (Art 1236, NCC)
to all the legal remedies against the debtor. (Art 2058, NCC)
7. Expromision — Whoever pays on behalf of the debtor
Termination When controversy ends Generally, when The excussion shall not take place:
without the knowledge or against the will of the latter, cannot
depositor claims back 1) If the guarantor has expressly renounced it;
compel the creditor to subrogate him in his rights, such as
Principles CC + Rules of Court Civil Code those arising from a mortgage, guaranty, or penalty. (Art 2) If he has bound himself solidarily with the debtor — surety;
applicable 1237, NCC)
3) In case of insolvency of the debtor;
Obligations secured by guaranty
4) When he has absconded, or cannot be sued within the
1. Voidable and unenforceable contracts; Philippines unless he has left a manager or representative;
C Guaranty and Suretyship
2. Natural obligations; 5) If it may be presumed that an execution on the property of the
3. Future debts with unknown amount; principal debtor would not result in the satisfaction of the
Guaranty
obligation. (Art 2059, NCC)
4. Conditional obligations.
a. Nature and extent 6) In the case of judicial bondsman (Art 2084, NCC); and
Parties to a guaranty
1. A guaranty is a contract by virtue of which a person, called 7) When the guarantor has constituted in favor of the creditor a
the guarantor, binds himself to the creditor to ful ll the 1. Guarantor — shall be subject to the jurisdiction of the court
pledge or mortgage as additional security.
obligation of the principal debtor in case the latter should of the place where this obligation is to be complied with. If the
guarantor should be In order that the guarantor may make use of the bene t of
fail to do so. (Art 2047, NCC)
excussion, he must set it up against the creditor upon the latter's
2. It is gratuitous, unless there is a stipulation to the contrary. a. convicted in the rst instance of a crime involving
demand for payment from him, and point out to the creditor
(Art 2048, NCC) dishonesty or
available property of the debtor within Philippine territory,
3. It is not presumed; it must be express and cannot extend to b. should become insolvent, su cient to cover the amount of the debt. (Art 2060, NCC)
more than what is stipulated therein. the creditor may demand another who has all the
Gilat Satellite v. UCPB 2014
4. It must be in writing. quali cations except where the creditor has required and
stipulated that a speci ed person should be the guarantor. The existence of a suretyship agreement does not give the surety the
5. The creditor is not bound to accept payment or performance
2. Creditor; right to intervene in the principal contract, nor can an arbitration
by a third person who has no interest in the ful llment of the
clause between the buyer and the seller be invoked by a non-party
obligation, unless there is a stipulation to the contrary. 3. Principal Debtor.
such as the surety.
6. Delegacion — Whoever pays for another may demand from
b. E ects
the debtor what he has paid, except that if he paid without the Right to protection and indemnification
⭐Excussion

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 Civil Law and Practical Exercises
A compromise between the creditor and the principal debtor
bene ts the guarantor but does not prejudice him. That which is
entered into between the guarantor and the creditor bene ts but
does not prejudice the principal debtor. (Art 2063, NCC)
The guarantor who pays for a debtor must be indemni ed by the
latter.
The indemnity comprises:
1) The total amount of the debt;
2) The legal interests thereon from the time the payment was
made known to the debtor, even though it did not earn
interest for the creditor;
3) The expenses incurred by the guarantor after having noti ed
the debtor that payment had been demanded of him;
4) Damages, if they are due. (Art 2066, NCC)
The guarantor may set up against the creditor all the defenses
which pertain to the principal debtor and are inherent in the debt;
but not those that are personal to the debtor. (Art 2081, NCC)
⭐The guarantor, even before having paid, may proceed against the
principal debtor:
1) When he is sued for the payment;
2) In case of insolvency of the principal debtor;
3) When the debtor has bound himself to relieve him from the
guaranty within a speci ed period, and this period has
expired;
4) When the debt has become demandable, by reason of the
expiration of the period for payment;
Reviewer
5) After the lapse of ten years, when the principal obligation has
no xed period for its maturity, unless it be of such nature that
it cannot be extinguished except within a period longer than
ten years;
6) If there are reasonable grounds to fear that the principal
debtor intends to abscond;
7) If the principal debtor is in imminent danger of becoming
insolvent.
In all these cases, the action of the guarantor is
a) to obtain release from the guaranty, or
b) to demand a security that shall protect him from any
proceedings by the creditor and from the danger of insolvency
of the debtor. (Art 2071, NCC)
Right to subrogation
1. The guarantor who pays is subrogated by virtue thereof to all
the rights which the creditor had against the debtor.
2. If the guarantor should pay without notifying the debtor, the
latter may enforce against him all the defenses which he could
have set up against the creditor at the time the payment was
made. (Art 2068, NCC)
3. If the debt was for a period and the guarantor paid it before it
became due, he cannot demand reimbursement of the debtor
until the expiration of the period unless the payment has been
rati ed by the debtor. (Art 2069, NCC)
4. In case of a gratuitous guaranty, if the guarantor was prevented
by a fortuitous event from advising the debtor of the payment,
and the creditor becomes insolvent, the debtor shall reimburse
the guarantor for the amount paid. (Art 2070, NCC)
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for the 2022 Bar
Rights of co-guarantors
1. The obligation to answer for the same is divided among all.
Or by default, JOINT.
2. The bene t of division against the co-guarantors ceases in
the same cases and for the same reasons as the bene t of
excussion against the principal debtor. (Art 2065, NCC)
3. If any of the guarantors should be insolvent, his share shall be
borne by the others, including the payer, in the same
proportion.
4. A sub-guarantor, in case of the insolvency of the guarantor
for whom he bound himself, is responsible to the
co-guarantors in the same terms as the guarantor. (Art 2075,
NCC)
c. Extinguishment
1. An extension granted to the debtor by the creditor without
the consent of the guarantor extinguishes the guaranty. (Art
2076, NCC)
2. A release made by the creditor in favor of one of the
guarantors, without the consent of the others, bene ts all to the
extent of the share of the guarantor to whom it has been
granted. (Art 2079, NCC)
3. If the creditor voluntarily accepts immovable or other
property in payment of the debt, even if he should afterwards
lose the same through eviction, the guarantor is released. (Art
2077, NCC)
4. The mere failure on the part of the creditor to demand
payment after the debt has become due does not of itself
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constitute any extension of time referred to herein. (Art 2079, surety contract or bond for each nancing or credit
NCC) a. Concept accommodation extended to the principal debtor.
Suretyship is a contract by virtue of which a person binds
CCC Insurance v. Kawasaki Steel 2015 himself solidarily with the principal debtor to ful ll the
d. Distinctions
obligation. Suretyship Standby Letter of Credit
There was no creditor-debtor relationship between the Republic and
FFMCCI and Article 2079 of the Civil Code did not apply. The Although the contract of a surety is secondary only to a valid Attached to underlying Independent from underlying
extension granted by the Republic to Kawasaki modi ed the principal obligation, the surety becomes liable for the debt or duty transaction transaction
deadline for the completion of the Project under the Construction of another although it possesses no direct or personal interest over
Contract, but had no e ect on the obligations of FFMCCI to the obligations nor does it receive any bene t therefrom. Completion of obligor’s Expectation of cash payment in
Kawasaki under the Consortium Agreement, much less, on the (Philippine Charter Insurance Corporation v. Petroleum performance the event of nonperformance
liabilities of CCCIC under the Surety and Performance Bonds. Distributors 2012)
No duty to indemnify the The bene ciary avoids that
b. Forms bene ciary until the bene ciary litigation burden and receives his
d. Legal and judicial bonds
Private/ Gratuitous/ Compensated Corporate establishes the fact of the money promptly upon
1. The bondsman who is to be o ered in virtue of a provision of obligor’s performance, normally presentation of the required
Accommodation Surety Surety
law or of a judicial order shall have the same quali cations. in a litigation process documents.
(Art 2082, NCC) Signs for Friendship Signs for Cash
See Transfield v. Luzon Hydro
2. If the person bound to give a bond in the cases of the
Surety does not prepare the Suretyship Guaranty
preceding article, should not be able to do so, a pledge or Contract of Adhesion
contract
mortgage considered su cient to cover his obligation shall be
Liability is primary Liability is subsidiary
admitted in lieu thereof. (Art 2083, NCC) Assume obligation on the basis
Assumes obligation only after
3. A judicial bondsman cannot demand the exhaustion of the of the debtor’s representations Assumes liability as a regular Assumes liability by
full investigation has been made
property of the principal debtor. and without legal advice party independent agreement

4. A sub-surety in the same case, cannot demand the exhaustion Rule of Strictissimi Juris Rule of Interpretation Liability is original Liability is collateral
of the property of the debtor or of the surety. (Art 2084,
NCC) c. Obligations secured Insurer of debt Insurer of solvency of debtor

Comprehensive or Continuing Surety — Existing and Future Excussion and division NOT HAS bene t of excussion and
Surety obligations; available division
By executing this type of surety agreement, the principal places
itself in a position to enter into the projected series of transactions
with its creditor; there would be no need to execute a separate

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Suretyship
The surety who does pay the
creditor has the right to recover
the full amount paid, and not
just any proportional share,
from the principal debtor/s.
Joint and Solidary
Obligations
The solidary debtor who
e ected the payment to the
creditor may claim from his
co-debtors only the share which
corresponds to each, with the
interest for the payment already
made.
obligations under the Sub-Contract. The Performance Bond thus principal, this Court has nevertheless characterized the surety's
stands as a contract of surety. liability to the creditor of the principal as "direct, primary, and
The surety's liability attaches the moment a demand for payment is absolute; in other words, the surety is directly and equally bound
made by the creditor. It is not necessary that the original debtor with the principal."
rst failed to pay before the surety could be made liable.
As to the applicability of Article 2080, in Bicol Savings & Loan
Association v. Guinhawa, the Court unequivocally ruled that Article X Torts and Damages
2080 applies only with respect to the liability of a guarantor. Verily,
a surety's liability stands without regard to the debtor's ability to Torts
perform his obligations under the contract subject of the suretyship. Elements

2015 Culpa aquiliana v. culpa contractual v. culpa criminal

Allied Banking v. Yujuico
Cellpage International Corp. v. Vicarious liability
Although the rst part of the continuing guaranties showed that 2020
The Solid Guaranty, Inc.
Jesus as the signatory had agreed to be bound "either as guarantor or Res ipsa loquitur
otherwise," the usage of term guaranty or guarantee in the caption of WON Solid Guaranty is liable to Cellpage in the absence of a written
Last clear chance
the documents, or of the word guarantor in the contents of the principal contract.
documents did not conclusively characterize the nature of the Damnum absque injuria
YES. The surety bonds herein do not expressly require the
obligations assumed therein. What properly characterized and Proximate cause
submission of a written principal agreement. Nowhere in the said
de ned the undertakings were the contents of the documents and
surety bonds did Solid Guaranty and Cellpage stipulate that Solid Negligence
the intention of the parties. With the stipulations in the continuing
Guaranty's performance of its obligations under the surety bonds is
guaranties indicating that he was the surety of the credit line Standard of care
preconditioned upon Cellpage's submission of a written principal
extended to YLTC, Jesus was solidarily liable to Genbank for the
agreement. Presumptions
indebtedness of YLTC.
A suretyship agreement is a contract of adhesion ordinarily prepared Damages
by the surety or insurance company. Therefore, its provisions are
General Provisions
interpreted liberally in favor of the insured and strictly against the
Mercantile Insurance v. 2019 Caguioa, J
DMCI-Laing Construction insurer. The oft-repeated rule in suretyship is that a surety's liability Kinds of Damages
is joint and solidary with that of the principal debtor. This makes a
In case of death
Mercantile obligated itself to pay DLCI immediately upon demand, surety agreement an ancillary contract as it presupposes the
notwithstanding any dispute as to the ful llment of Altech's existence of a principal agreement. Although the surety's obligation
is merely secondary or collateral to the obligation contracted by the A Torts

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an establishment or enterprise" is used in the sense of

Tort is broadly de ned as a breach of legal duty. It essentially superior applies. insolvent.
"employer." (Phil Rabbit Bus v. Phil-Am Forwarders)
consists in the violation of a right given or omission of statutory
Presumption arises Ordinarily, Prosecution has Acts done within the scope of the employee’s assigned tasks
duty imposed by law.
upon proof that complainant must burden to prove the includes "any act done by an employee in furtherance of the
1 Elements there was a contract prove the negligence negligence of interests of the employer or for the account of the employer at
and that it was not of defendant. accused. the time of the in iction of the injury or damages." (Castilex
To sustain a claim based on quasi-delict, the following requisites must
carried out. Industries v. Vasquez)
concur:

1. damage su ered by the plainti ; 4) Vicarious liability of Employers. — Employers shall be

3 Vicarious liability liable for the damages caused by their employees and
2. fault or negligence of defendant; and household helpers acting within the scope of their assigned
ART 2180. The obligation imposed by Article 2176 is
3. connection of cause and e ect between the fault or tasks, even though the former are not engaged in any business
demandable not only for one's own acts or omissions, but also
negligence of defendant and the damage incurred by the or industry.
for those of persons for whom one is responsible.
plainti . Where the security agency recruits, hires and assigns the work
1) Vicarious liability of Parents. — The father and, in case of
Culpa aquiliana v. culpa contractual v. culpa of its watchmen or security guards, the agency is the employer
his death or incapacity, the mother, are responsible for the
2 of such guards and watchmen. Liability for illegal or harmful
criminal damages caused by the minor children who live in their
acts committed by the security guards attaches to the employer
company.
agency, and not to the clients or customers of such agency.
Contractual Aquiliana Criminal 2) Vicarious liability of Guardians. — Guardians are liable (Mamaril v. Boy Scouts of the Philippines 2013)
for damages caused by the minors or incapacitated persons
Negligence is merely Direct, substantive and independent of a When an injury is caused by the negligence of an employee
who are under their authority AND live in their company.
incidental contract there instantly arises a presumption of the law that there was
(Art 217 Family Code)
negligence on the part of the employer either in the selection
There’s a No pre-existing obligation, except the duty to 3) Vicarious liability of Owners and Managers of of his employee or in the supervision over him after such
pre-existing do no harm. Establishments. — Article 2180 does not make the principal selection. The presumption however may be rebutted by a
obligation vicariously liable for the tort committed by its agent’s clear showing on the part of the employer that it had exercised
employees and the principal-agency relationship per se does the care and diligence of a good father of a family in the
Preponderance of evidence required Proof beyond
not make the principal a party to such tort; hence, the need to selection and supervision of his employee. (Baliwag Transit v.
reasonable doubt
prove the principal’s own fault or negligence. (Sps Viloria v. CA)
Defense of a good Defense of a good The employee’s guilt Continental Air 2012)
Before an employer may be held liable for the negligence of his
father of a family father of a family is a is automatically the A manager of a corporation is a mere employee and is not employee, the act or omission which caused damage or
inapplicable. proper and complete employer's civil guilt vicariously liable under this provision. The term "managers of prejudice must have occurred while an employee was in the
Respondeat defense. if the former is
performance of his assigned tasks. (St Francis HS v. CA)

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Civil Law and Practical Exercises
A working scholar is not an employee of the learning
institutions in which they work for the privilege of a free
education. (Filamer Christian Institute v. CA)
For an employer to have exercised the diligence of a good father
of a family, he should not be satis ed with the applicant's mere
possession of a professional driver's license; he must also
carefully examine the applicant for employment as to his
quali cations, his experience and record of service. (Yambao v.
Zuñiga)
The employer must not merely present testimonial evidence to
prove that he observed the diligence of a good father of a
family in the selection and supervision of his employee, but he
must also support such testimonial evidence with concrete or
documentary evidence. (Syki v. Begasa)
In an action based on quasi-delict, the liability of the
employer is direct and primary, subject to the defense of
5) Vicarious liability of Vehicle Owners. —
due diligence in the selection and supervision of the employee.
(Aguila v. Baldovizo)
To sustain claims against employers for the acts of their
employees, the following requisites must be established:
1) That the employee was chosen by the employer
personally or through another;
2) That the service to be rendered in accordance with
orders which the employer has the authority to give at
all times; and
3) That the illicit act of the employee was on the
ART 2185. Unless there is proof to the contrary, it is presumed
occasion or by reason of the functions entrusted to
that a person driving a motor vehicle has been negligent if at
him. (Sps Jayme v. Apostol)
the time of the mishap, he was violating any tra c regulation.
Reviewer
Vis-a-vis Registered Owner Rule — In cases where both
the registered-owner rule and Article 2180 apply, the plainti
must rst establish that the employer is the registered owner of
the vehicle in question. Once the plainti successfully proves
ownership, there arises a disputable presumption that the
requirements of Article 2180 have been proven. As a
consequence, the burden of proof shifts to the defendant to
show that no liability under Article 2180 has arisen. (Caravan
Travel and Tours v. Abejar 2016)
To prove due diligence in the supervision of employees, it is
not enough for an employer to emptily invoke the existence of
rules. What is more important is the actual implementation
and monitoring of consistent compliance with the rules. Thus,
there must be proof of diligence in the actual supervision of
the employees' work. (Our Lady of Lourdes Hospital v. Sps
Capanzana)
a) If owner in the vehicle — the owner is solidarily liable
with his driver, if the former, who was in the vehicle,
could have, by the use of the due diligence, prevented
the misfortune.
b) If not in the vehicle — Article 2180 applies.
An owner of a vehicle cannot be held liable for an accident
involving the said vehicle if the same was driven without his
consent or knowledge and by a person not employed by him.
(Duavit v. CA)
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This article’s applicability is expressly quali ed to motor
vehicles only, and there is no ground to presume that the law
intended a broader coverage. (Añonuevo v. CA)
The registered owner of any vehicle, even if he had already sold
it to someone else, is primarily responsible to the public for
whatever damage or injury the vehicle may cause. (Cadiente v.
Macas)
6) Vicarious liability of the State. — The State is responsible
in like manner when it acts through a special agent; but not
when the damage has been caused by the o cial to whom the
task done properly pertains, in which case what is provided in
Article 2176 shall be applicable.
A special agent is one who receives a de nite and xed order
or commission, foreign to the exercise of the duties of his o ce
if he is a special o cial. (Merritt v. GPI)
BPI v. Central Bank 2020
The State in the performance of its governmental functions is liable
only for the tortuous acts of its special agents. On the other hand, the
State becomes liable as an ordinary employer when performing its
proprietary functions.
Both Valentino and Estacio are not considered as special agents of
CBP during their commission of the fraudulent acts against BPI as
they were regular employees performing tasks pertaining to their
o ces, namely, bookkeeping and janitorial-messenger. Thus, CBP
cannot be held liable for any damage caused to BPI by reason of
Valentino and Estacio's unlawful acts.
7) Vicarious liability of Teachers. — Teachers or heads of
establishments of arts and trades shall be liable for damages
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caused by their pupils and students or apprentices, so long as
they remain in their custody.
The provision should apply to ALL schools, academic as well
as non-academic. Where the school is academic rather than
technical or vocational in nature, responsibility for the tort
committed by the student will attach to the teacher in charge
of such student, following the rst part of the provision. This
is the general rule.
In the case of establishments of arts and trades, it is the head
thereof, and only he, who shall be held liable as an exception to
the general rule. In other words, teachers in general shall be
liable for the acts of their students except where the school is
technical in nature, in which case it is the head thereof who
shall be answerable. (Amadora v. CA modifying Exconde v.
Capuno)
Under Article 219 of the Family Code, if the person under
custody is a minor, those exercising special parental
authority are principally and solidarily liable for damages
caused by the acts or omissions of the unemancipated minor
while under their supervision, instruction, or custody. (St.
Mary’s Academy v. Carpitanos)
4 Res ipsa loquitur
The doctrine of res ipsa loquitur applies where
1. the accident was of such character as to warrant an
inference that it would not have happened except for the
defendant's negligence;
2. the accident must have been caused by an agency or
instrumentality within the exclusive management or
Reviewer
control of the person charged with the negligence
complained of; and
3. the accident must not have been due to any voluntary
action or contribution on the part of the person injured.
The REQUISITES of the applicability of res ipsa loquitur are:
1) the occurrence of an injury;
2) ⭐ the thing which caused the injury was under the
control and management of the defendant;
3) the occurrence was such that in the ordinary course of
things, would not have happened if those who had control
or management used proper care; and
4) the absence of explanation by the defendant.
This is NOT a rule of substantive law but for mere procedural
convenience. It can only be invoked when direct evidence is absent
and not readily available. It is applicable only in cases of pure tort
and NOT in culpa contractual cases.
The doctrine rests on inference and not on presumption. The
facts of the occurrence warrant the supposition of negligence and
they furnish circumstantial evidence of negligence when direct
evidence is lacking.
Carmen, Jr v. Bacoy 2012
Res ipsa loquitur is “merely evidentiary, a mode of proof, or a mere
procedural convenience, since it furnishes a substitute for, and
relieves a plainti of, the burden of producing a speci c proof of
negligence.”
Here, petitioner’s own evidence casts doubt on his claim that his jeep
was stolen by Allan and his alleged cohorts. Negligence is
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for the 2022 Bar
presumed under the doctrine of res ipsa loquitur.
The requisites of the doctrine of res ipsa loquitur were all present in
this case.
First, no person just walking along the road would suddenly be
sideswiped and run over by an on-rushing vehicle unless the one in
charge of the said vehicle had been negligent.
Second, the jeep which caused the injury was under the exclusive
control of Oscar Jr. as its owner.
Lastly, there was no showing that the death of the victims was due to
any voluntary action or contribution on their part.
The aforementioned requisites having been met, there now arises a
presumption of negligence against Oscar Jr. which he could have
overcome by evidence that he exercised due care and diligence in
preventing strangers from using his jeep. Unfortunately, he failed to
do so.
Solidum v. People 2014
In cases where the res ipsa loquitur is applicable, the court is
permitted to nd a physician negligent upon proper proof of injury
to the patient, without the aid of expert testimony, where the court
from its fund of common knowledge can determine the proper
standard of care.
Res ipsa loquitur is NOT available in a malpractice suit if the only
showing is that the desired result of an operation or treatment was
not accomplished. The real question, therefore, is whether or not in
the process of the operation any extraordinary incident or unusual
event outside of the routine performance occurred which is beyond
the regular scope of customary professional activity in such
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operations, which, if unexplained would themselves reasonably speak
to the average man as the negligent cause or causes of the untoward
consequence.
5 Last clear chance
The law is that the person who has the last fair chance to avoid the
impending harm and fails to do so is chargeable with the
consequences, without reference to the prior negligence of the
other party.
The doctrine is being applied for the purpose of determining the
proximate cause of the accident. Cases where the doctrine is
INAPPLICABLE
a) If the plainti was not negligent, that is, only the defendant
was negligent. (PNR v. Vizcara)
b) Where the defendant is required to act instantaneously, and
if the injury cannot be avoided by the application of all means
at hand after the peril is or should have been discovered; at
least in cases in which any previous negligence of the party
charged cannot be said to have contributed to the injury.
c) If defendant’s negligence is a concurrent cause and which was
still in operation up to the time the injury was in icted. In
other words, it cannot be applied in the eld of joint
tortfeasors and it cannot be invoked as between defendants
who are concurrently negligent.
d) Where the plainti , a passenger, led an action against a
carrier based on contract.
Reviewer
e) If the actor, though negligent, was not aware of the danger or
risk brought about by a prior fraud or negligent act.
PNR v. Vizcara 2012
Absent preceding negligence on the part of the plainti , the doctrine
of last clear chance cannot be applied.
The doctrine of last clear chance provides that the antecedent
negligence of a person does not preclude recovery of damages caused
by the supervening negligence of the latter, who had the last fair
chance to prevent the impending harm by the exercise of due
diligence. To reiterate, the proximate cause of the collision was the
petitioners’ negligence in ensuring that motorists and pedestrians
alike may safely cross the railroad track. The unsuspecting driver and
passengers of the jeepney did not have any participation in the
occurrence of the unfortunate incident which befell them. Likewise,
they did not exhibit any overt act manifesting disregard for their own
safety. Thus, absent preceding negligence on the part of the
respondents, the doctrine of last clear chance cannot be
applied.
Greenstar Express v. Universal Robina 2016
Where both parties are negligent but the negligent act of one is
appreciably later in point of time than that of the other, or where it is
impossible to determine whose fault or negligence brought about the
occurrence of the incident, the one who had the last clear
opportunity to avoid the impending harm but failed to do so, is
chargeable with the consequences arising therefrom.
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for the 2022 Bar
6 Damnum absque injuria
Thus, there can be damage with- out injury in those instances in
which the loss or harm was not the result of a violation of a legal
duty. In such cases, the consequences must be borne by the injured
person alone, the law a ords no remedy for damages resulting
from an act which does not amount to a legal injury or wrong.
If damage results from a person exercising his legal rights, it is
damnum absque injuria.
Cebu Country Club v. Elqueizaga
In rejecting respondent’s application for proprietary membership,
we nd that petitioners violated the rules governing human relations.
Petitioners committed fraud and evident bad faith in disapproving
respondent’s applications. This is contrary to morals, good custom
or public policy. Hence, petitioners are liable for damages pursuant
to Article 19 in relation to Article 21 of the same Code.
As to petitioners’ reliance on the principle of damnum absque
injuria or damage without injury, su ce it to state that the same is
misplaced. In Amonoy v. Gutierrez, we held that this principle
does not apply when there is an abuse of a person’s right, as in
this case.
Under Article 2219, moral damages may be recovered, among
others, in acts and actions referred to in Article 21.
Felipe v. Leuterio, et al.
Whether the courts have the authority to reverse the award of the board
of judges of an oratorical competition.
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No rights to the prizes may be asserted by the contestants, because
theirs was merely the privilege to compete for the prize, and that
privilege did not ripen into a demandable right unless and until they
were proclaimed winners of the competition by the appointed
arbiters or referees or judges.
Error and wrong do not mean the same thing. "Wrong" as used in
the aforesaid legal principle is the deprivation or violation of a right.
Granting that Imperial su ered some loss or injury, yet in law there
are instances of "damnum absque injuria". This is one of them. If
fraud or malice had been proven, it would be a di erent proposition.
But then her action should be directed against the individual judge
or judges who fraudulently or maliciously injured her. Not against
the other judges. The judiciary has no power to reverse the
award of the board of judges of an oratorical contest.
B Proximate cause
To sustain a claim based on quasi-delict, the following requisites must
concur:
1. damage su ered by the plainti ;
2. fault or negligence of defendant; and
3. connection of cause and e ect between the fault or
negligence of defendant and the damage incurred by the
plainti .
1. Concept
Proximate cause has been de ned as that cause, which, in
natural and continuous sequence, unbroken by any e cient
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intervening cause, produces the injury or loss, and without which
3. Proximate cause is determined from the facts of each case,
the result would not have occurred.
upon a combined consideration of logic, common sense,
The proximate legal cause is that policy, and precedent.
1) acting rst and producing the injury, The care required must be commensurate with the danger
involved, and the skill employed must correspond with the
2) either immediately or by setting other events in motion,
superior knowledge of the business which the law demands.
3) all constituting a natural and continuous chain of events, (Mercury Drug v. Baking)
4) each having a close causal connection with its immediate
2. Cause in fact
predecessor,
The initial step in determining proximate cause is to determine if
5) the nal event in the chain immediately e ecting the
the negligent act or omission of the defendant is the cause-in-fact
injury as a natural and probable result of the cause which
or the actual cause of plainti ’s damage or injury. Two main tests
rst acted,
are being applied:
6) under such circumstances that the person responsible for
1) Sine Qua Non or the But-For Test. — Defendant’s conduct
the rst event should, as an ordinary prudent and
is the cause in fact of the injury if the damage would not have
intelligent person, have reasonable ground to expect at
resulted had there been no negligence on the part of the
the moment of his act or default that an injury to some
defendant.
person might probably result therefrom.
Conversely, defendant’s negligent conduct is not the cause in
Some cases
fact if the accident could not have been avoided in the absence
1. A causal connection must exist between the injury received thereof.
and the violation of the tra c regulation. It must be proven
2) Substantial Factor Test. — In order to be a substantial
that the violation of the tra c regulation was the proximate or
factor in producing the harm, the causes set in motion by the
legal cause of the injury or that it substantially contributed
defendant must continue until the moment of the damage or
thereto. (Tison et al. v. Sps. Pomasin 2011)
at least down the setting in motion of the nal active injurious
2. An injury or damage is proximately caused by an act or failure force which immediately produced or preceded the damage.
to act, whenever it appears from the evidence in the case that
the act or omission played a substantial part in bringing about 3. E cient intervening cause
or actually causing the injury or damage, and that the injury or An e cient intervening cause is one that destroys the causal
damage was either a direct result or a reasonably probable connection between the negligent act and injury and thereby
consequence of the act or omission. (Ocean Builders v. Sps.
Cubacub 2011)
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Civil Law and Practical Exercises
negatives liability. There is no e cient intervening cause if the
force created by the negligent act or omission have either:
1) remained active itself or
2) created another force which remained active until it
directly caused the result, or
3) created a new active risk of being acted upon by the active
force that caused the result.
The test of the su ciency of an intervening cause to defeat recov-
ery for negligence is not to be found in the mere fact of its
existence, but rather in its nature and manner in which it a ects
the continuity of operation of the primary cause or the connection
between it and the injury. Such intervening cause must be
a) new and independent,
b) not under the control of the original wrongdoer, or
c) one which by the exercise of reasonable foresight and
diligence, he should have anticipated and guarded against
it.
The e cient intervening cause may be the negligence of the
defendant.
A cause is NOT an intervening cause if it is already in operation at
the time the negligent act is committed.
The rule in this jurisdiction is to the e ect that foreseeable
intervening causes cannot be considered su cient intervening
causes. Under this same principle, a tortfeasor is liable for the
conse- quence of negligence, mistake, or lack of skill of a physician
or surgeon whose treatment aggravated the original injury.
The intervention of an unforeseen and unexpected cause, is
NOT su cient to relieve a wrongdoer from consequences of
Reviewer for the 2022 Bar
negligence, if such negligence directly and proximately cooperates
The degree of care required to be exercised must vary with the
with the inde- pendent cause in the resulting injury. (Africa v.
capacity of the person endangered to care for himself.
Caltex)
A HIGH degree of care and diligence is required if it involves:
C Negligence a) Functions imbued with public interest, i.e. banking
business;
Negligence is de ned as the failure to observe for the protection
b) Objects that are dangerous, i.e. electricity;
of the interests of another person that degree of care, precaution,
and vigilance which the circumstances justly demand, whereby c) An instrumentality extremely dangerous in character, i.e.
such other person su ers injury. dangerous weapons or substances.
Picart v. Smith laid out the following test of negligence: Did the Factors to be considered. In considering negligence, the following
defendant in doing the alleged negligent act use that reasonable care are to be factored in:
and caution which an ordinary person would have used in the same
a) Employment or occupation;
situation? If not, then he is guilty of negligence.
b) Degree of intelligence;
Degrees of negligence
c) Physical condition;
a) SLIGHT negligence. Failure to exercise great or
d) Other circumstances reg persons, time, and place.
extraordinary care.
b) ORDINARY negligence. The want of ordinary care and EMERGENCY RULE. An individual who suddenly nds
diligence. himself in a situation of danger and is required to act without
much time to consider the best means that may be adopted to
c) GROSS negligence. Consists of an entire absence of care
avoid the impending danger, is not guilty of negligence if he fails to
or an absence of even slight care or diligence; a thoughtless
undertake what subsequently and upon re ection may appear to
disregard for the consequences or an indi erence to the
be a better solution, unless the emergency was brought by his own
rights or welfare of others.
negligence. (Valenzuela v. CA)
Nature of the concept of negligence. It is RELATIVE and
INAPPLICABLE. One who suddenly nds himself in a place of
COMPARATIVE. It is dependent upon the situation of the
danger, and is required to act without time to consider the best
parties and the care and vigilance which the circumstances
means that may be adopted to avoid the impending danger, is not
reasonably impose.
guilty of negligence, if he fails to adopt what subsequently and
upon re ection may appear to have been a better method, unless
1 Standard of care
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the emergency in which he nds himself is brought about by his
own negligence. (Orix Metro Leasing v. Mangalinao 2012)
2 Presumptions
a) Art 2184. xxxx a driver was negligent, if he had been found
guilty of reckless driving or violating tra c regulations
at least twice within the next preceding two months.
b) Art 2185. xxxx a person driving a motor vehicle has been
negligent if at the time of the mishap, he was violating any
tra c regulation.
c) Art 2188. There is prima facie presumption of negligence on
the part of the defendant if the death or injury results from his
possession of dangerous weapons or substances, such as
rearms and poison, except when the possession or use
thereof is indispensable in his occupation or business.
Negligence, consisting in whole or in part, of violation of law, like
any other negligence, is without legal consequence unless it is a
contributing cause of the injury.
A causal connection must exist between the injury received and the
violation of the tra c regulation. It must be proven that the
violation of the tra c regulation was the proximate or legal cause
of the injury or that it substantially contributed thereto. (Tison v.
Sps Pomasin 2011)
D Damages
1 General Provisions
Damages is the pecuniary compensation, recompense, or
satisfaction for an injury sustained, or as otherwise expressed, the
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pecuniary consequences which the law imposes for the breach of
1) When exemplary damages are awarded;
some duty or violation of some rights.
2) When the defendant's act or omission has compelled the
There is a material distinction between damages and injury.
plainti to litigate with third persons or to incur expenses
Injury is the illegal invasion of a legal right; damage is the loss, to protect his interest;
hurt or harm which results from the injury; and damages are the
3) In criminal cases of malicious prosecution against the
recompense or compensation awarded for the damage su ered.
plainti ;
2 Kinds of Damages
4) In case of a clearly unfounded civil action or proceeding
against the plainti ;
a. Actual and Compensatory
Actual and compensatory damages are those recoverable because 5) Where the defendant acted in gross and evident bad faith
of pecuniary loss — in business, trade, property, profession, job or in refusing to satisfy the plainti 's plainly valid, just and
occupation. demandable claim;
Indemni cation for damages shall comprehend not only the value 6) In actions for legal support;
of the loss su ered, but also that of the pro ts which the obligee 7) In actions for the recovery of wages of household helpers,
failed to obtain. laborers and skilled workers;
To seek recovery for actual damages, it is necessary to prove with a 8) In actions for indemnity under workmen's compensation
reasonable degree of certainty, premised upon competent proof and employer's liability laws;
and on the best evidence obtainable by the injured party, the actual
9) In a separate civil action to recover civil liability arising
amount of loss.
from a crime;
Actual or compensatory damages under the prevailing law may be
10) When at least double judicial costs are awarded;
classi ed into two.
11) In any other case where the court deems it just and
1. One is the loss of what a person already possesses (daño
equitable that attorney's fees and expenses of litigation
emergente), and
should be recovered.
2. the other is the failure to receive as a bene t that would
No proof of pecuniary loss is necessary in order that moral, nominal,
have pertained to him (lucro cesante).
temperate, liquidated or exemplary damages, may be adjudicated.
Attorney’s Fees The assessment of such damages, except liquidated ones, is left to the
In the absence of stipulation, attorney's fees and expenses of discretion of the court, according to the circumstances of each case.
(Art 2216)
litigation, other than judicial costs, cannot be recovered, except:
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Civil Law and Practical Exercises
b. Moral
Moral damages are meant to enable the injured party to obtain
the means, diversions or amusements in order to alleviate the moral
su ering.
Moral damages may be awarded if the contractual breach is found
to be wanton and deliberately injurious, or if the one responsible
acted fraudulently or with malice or bad faith.
The principle that, in an action for breach of contract of carriage,
moral damages may be awarded only in case
1) an accident results in the death of a passenger; or
2) the carrier is guilty of fraud or bad faith,
is pursuant to Article 1764, in relation to Article 2206(3) of the
Civil Code, and Article 2220 thereof. (Darines v. Quiñones)
Case law establishes the following requisites for the award of moral
damages:
1) there must be an injury clearly sustained by the claimant,
whether physical, mental or psychological;
2) there must be a culpable act or omission factually
established;
3) the wrongful act or omission of the defendant is the
proximate cause of the injury sustained by the claimant;
c. Nominal
and
4) the award for damages is predicated on any of the cases
stated in Article 2219.
Moral damages may be recovered in the following and analogous
cases:
1) A criminal o ense resulting in physical injuries;
Reviewer
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.
Rule as to Juridical Persons. — A juridical person is generally
not entitled to moral damages because, unlike a natural person, it
cannot experience physical su ering or such sentiments as
wounded feelings, serious anxiety, mental anguish or moral shock.
However, where the claim for moral damages falls under item 7 of
Article 2219 of the Civil Code, moral damages may be recovered.
This provision expressly authorizes the recovery of moral damages
in cases of libel, slander or any other form of defamation. Article
2219(7) does not qualify whether the plainti is a natural or
juridical person.
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 or where there has
been a breach of contract and no substantial injury or actual
damages whatsoever have been or can be shown. (Seven Brothers v.
DMC Construction)
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d. Temperate
Temperate damages in lieu of actual damages for loss of earning
capacity may be awarded where earning capacity is plainly
established but no evidence was presented to support the allegation
of the injured party's actual income.
It is wrong to award, along with nominal damages, temperate or
moderate damages. The two awards are incompatible and
cannot be granted concurrently.
e. Liquidated
Liquidated damages are those agreed upon by the parties to a
contract, to be paid in case of breach thereof.
When the breach of the contract committed by the defendant is
not the one contemplated by the parties in agreeing upon the
liquidated damages, the law shall determine the measure of
damages, and not the stipulation.
f. Exemplary
Exemplary damages are designed to permit the courts to reshape
behavior that is socially deleterious in its consequence by creating
negative incentives or deterrents against such behavior.
Requisites:
1. May be imposed as way of example in addition to
compensatory damages, and only after the claimant’s right
to them has been established;
2. Cannot be recovered as a matter of right, always based on
amount of compensatory damages;
3. The act must be accompanied by bad faith, or done in
wanton, fraudulent, oppressive or malevolent manner.
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3 In case of death 3) The spouse, legitimate and illegitimate descendants and Possession
ascendants of the deceased may demand moral damages for Kinds of possession
When death occurs due to a negligent act or a crime, the following mental anguish by reason of the death of the deceased.
damages may be recovered: Acquisition of possession
Loss of Earning Capacity.
1) Civil indemnity ex delicto; E ects of possession
𝑁𝑒𝑡 𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 = 𝐿𝑖𝑓𝑒 𝐸𝑥𝑝𝑒𝑐𝑡𝑎𝑛𝑐𝑦 × [𝐺𝐴𝐼 − 𝑁𝐿𝐸]
2) Actual or compensatory damages; Usufruct
Where:
3) Moral damages; In general
2
𝐿𝑖𝑓𝑒 𝐸𝑥𝑝𝑒𝑐𝑡𝑎𝑛𝑐𝑦 = (80 − 𝐴𝑔𝑒 𝑎𝑡 𝐷𝑒𝑎𝑡ℎ);
4) Exemplary damages; 3
Rights and obligations of the usufructuary
5) Attorney’s fees and expenses of litigation; GAI = Gross Annual Income;
Extinguishment
6) Interest, in proper cases; and NLE = Necessary Living Expense.
Easements
7) Temperate damages, in lieu of actual damages in proper cases. GR: Must be established through documentary proof.
Modes of acquiring easements
Death indemnity. The amount of damages for death caused by a EXC:
Rights and obligations of the owners of the dominant
crime or quasi-delict shall be at least Php50K, even though there may 1) Self-employed earning less than minimum wage;
and servient estates
have been mitigating circumstances. In addition:
2) Daily wage earner earning less than MW.
Modes of extinguishment
1) The defendant shall be liable for the loss of the earning
capacity of the deceased, and the indemnity shall be paid to the Legal v. voluntary easements
heirs of the latter; such indemnity shall in every case be
assessed and awarded by the court, unless the deceased on
Part II Kinds of legal easement

account of permanent physical disability not caused by the Relating to waters

defendant, had no earning capacity at the time of his death; I Property Right of way
2) If the deceased was obliged to give support according to the
Classi cation of Property Light and view
provisions of article 291, the recipient who is not an heir called
to the decedent's inheritance by the law of testate or intestate Ownership Nuisance
succession, may demand support from the person causing the Modes of Acquiring Ownership
General Provisions
death, for a period not exceeding ve years, the exact duration
to be xed by the court; Rules on Accession Occupation

Rights of builder/planter/sower in good faith Donation

Co-ownership Nature

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Persons who may give or receive a donation or quasi-judicial power to determine the nature of any document of
1. Immovables
E ects and limitations of donation which registration is sought as a chattel mortgage.
What is immovable property?
Revocation and reduction
ART 415. The following are immovable property: xxxx
Prescription Davao Sawmill Co. v. Castillo
Classification of Real properties:
General provisions 1. Real property by nature (trees and plants); While not conclusive, the characterization of the machineries as
Prescription of ownership and other real rights chattels by the appellant is indicative of intention and impresses
2. By incorporation (building);
upon the property the character determined by the parties.
Prescription of actions 3. By destination or purpose (machinery);
Quieting of Title 4. By analogy (right of usufruct).
Actions to Recover Property Makati Leasing v. Wearever Textile Mills
Leung Yee v. Strong Machinery
Accion interdictal As stated in Standard Oil Co. of New York v. Jaramillo, it is
The building of strong materials in which the rice-cleaning undeniable that the parties to a contract may by agreement treat as
Accion publiciana
machinery was installed by the "Compania Agricola Filipina" was personal property that which by nature would be real property, as
Accion reivindicatoria real property, and the mere fact that the parties seem to have dealt long as no interest of third parties would be prejudiced
with it separate and apart from the land on which it stood in no wise thereby.
A Classification of Property changed its character as real property.

Importance of classification Mindanao Bus Company v. City Assessor

Di erent provisions of the law govern the acquisition, disposition,
loss, and registration of immovables and movables.
Classification of Property on the basis of its nature
ART 414. All things which are or may be the object of
appropriation are considered either:
1) Immovable or REAL property; or
2) Movable or PERSONAL property.
Punsalan, Jr. v. Lacsamana
The warehouse claimed to be owned by petitioner is an immovable
or real property as provided in Article 415(1). Buildings are always
immovable under the Code.
Standard Oil Co. v. Jaramillo
The duties of a register of deeds in respect to the registration
of chattel mortgages are of a purely ministerial character; and
no provision of law can be cited which confers upon him any judicial
So that movable equipment to be immobilized in contemplation of
the law must rst be "essential and principal elements" of an
industry or works without which such industry or works would be
"unable to function or carry on the industrial purpose for which it
was established."
Aside from the element of essentiality, Art 415(5) also requires that
the industry or works be carried on in a building or on a piece of
land. In the case at bar, the equipments in question are destined only
to repair or service the transportation business. Said equipments
may not, therefore, be deemed real property.

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Caltex Philippines Inc. v. CBAA
This case is about the realty tax on machinery and equipment
installed by Caltex in its gas stations located on leased land. Said
equipment and machinery, as appurtenances to the gas station
building or shed owned by Caltex and which xtures are necessary to
the operation of the gas station are taxable improvements and
machinery within the meaning of the Assessment Law and the Real
Property Tax Code.
Serg’s Products v. PCI Leasing
After agreeing to a contract stipulating that a real or
immovable property be considered as personal or movable, a
party is estopped from subsequently claiming otherwise.
Hence, such property is a proper subject of a writ of replevin
obtained by the other contracting party.
Tumalad v. Vicencio
Although there is no speci c statement referring to the subject house
as personal property, yet by ceding, selling or transferring a property
by way of chattel mortgage defendants-appellants could only have
meant to convey the house as chattel, or at least, intended to treat the
same as such, so that they should not now be allowed to make an
inconsistent stand by claiming otherwise.
Ago v. CA
Reviewer
By the installation of the sawmill machineries in the building of the
Golden Paci c Sawmill, Inc. for use in the sawing of logs carried on
in said building, the same became a necessary and permanent part of
the building or real estate on which the same was constructed,
converting the said machineries and equipment into real
estate.
Benguet Corp. v. CBAA
Here, the subject dam falls within the de nition of an
"improvement" because it is permanent in character and it enhances
both the value and utility of petitioner's mine. Moreover, the
immovable nature of the dam de nes its character as real property
under Article 415 of the Civil Code and thus makes it taxable under
Section 38 of the Real Property Tax Code.
Star Two, Inc. v. Paper City Corp. 2013
The real estate mortgages which speci cally included the machineries
and equipments were subsequent to the chattel mortgages dated 26
August 1992, 20 November 1992, 7 June 1994 and 24 January 1995.
Without doubt, the real estate mortgages superseded the earlier
chattel mortgages.
The real estate mortgage over the machineries and equipments is
even in full accord with the classi cation of such properties as
immovable property.
2. Movables
ART 416. The following things are deemed to be personal
property:
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1) Those movables susceptible of appropriation
which are not included in the preceding article;
2) Real property which by any special provision of law is
considered as personality;
3) Forces of nature which are brought under control
by science; and
4) In general, all things which can be transported from
place to place without impairment of the real property
to which they are xed.
ART 417. The following are also considered as personal
property:
1) Obligations and actions which have for their object
movables or demandable sums; and
2) Shares of stock of agricultural, commercial and
industrial entities, although they may have real estate.
a. General Test of Movable Character
1. If the property is capable of being carried from place to
place (test by description);
2. If such change in location can be made without injuring
the real property to which it may in the meantime be
attached (test by description); and
3. If the object is not one of those enumerated in Art 415
(test by exclusion)
b. Consumables and Non-Consumables. —According to the
nature of the movable property.
c. Fungible and Non-Fungible. — According to the
intention of the parties.
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⭐Laurel v. Abrogar Fort Bonifacio Development Corp. v. Fong 2015 i) To Possess; jus possidendi

This Court, in US v. Genato, US v. Carlos, and US v.
Tambunting, consistently ruled that any personal property, tangible
or intangible, corporeal or incorporeal, capable of appropriation
can be the object of theft.
The act of conducting ISR operations by illegally connecting various
equipment or apparatus to PLDT's telephone system, through
which petitioner is able to resell or re-route international long
distance calls using PLDT's facilities constitutes all three acts of
subtraction. The business of providing telecommunication or
telephone service is likewise personal property which can be the
object of theft under Article 308 of the RPC.
HPS Software and Communication v. PLDT 2012
The business of providing telecommunication or telephone service
is personal property which can be the object of theft under Article
308 of the RPC. Business may be appropriated under Section 2 of
the Bulk Sales Law, hence, could be the object of theft.
Definition of Ownership
Chiang v. PLDT 2017
Toll bypass operations could not have been accomplished without
the installation of telecommunications equipment to the PLDT
telephone lines. Thus, petitioners may also be held liable for violation
of PD No. 401, which penalizes the unauthorized installation of any
telephone connection without previous authority from PLDT.
1. Bundle of rights
An assignment of credit for a consideration and covering a
demandable sum of money is considered as a sale of personal
property.
Laud v. People 2014
“Personal property” refers to the thing’s mobility, and not to its
capacity to be owned or alienated by a particular person. Considering
that human remains can generally be transported from place to
place, and considering further that they qualify under the phrase
“subject of the o ense” given that they prove the crime’s corpus
delicti, it follows that they may be valid subjects of a search warrant.
Principle of “Self-Help”
B Ownership
1 General Provisions
ART 427. Ownership may be exercised over things or rights.
Ownership is the independent and general right of a person to
control a thing particularly in his possession, enjoyment,
disposition, and recovery, subject to no restrictions except those
imposed by the state or private persons, without prejudice to the
provisions of the law.
a) Right to enjoy;
ii) To Use; jus utendi
iii) To the Fruits. jus fruendi
b) Right to dispose; jus disponendi
i) To consume or destroy or abuse; jus abutendi
ii) To encumber or alienate.
c) Right to recover or vindicate; jus vindicandi
ART 430. Every owner may enclose or fence his land or
tenements by means of walls, ditches, live or dead hedges, or
by any other means without detriment to servitudes
constituted thereon.
ART 429. The owner or lawful possessor of a thing has the
right to exclude any person from the enjoyment and disposal
thereof.
For this purpose, he may use such force as may be reasonably
necessary to repel or prevent an actual or threatened unlawful
physical invasion or usurpation of his property.
German Management & Services, Inc. v. CA
The doctrine of self-help can only be exercised at the time of
actual or threatened dispossession which is absent herein.
When possession has already been lost, the owner must resort
to judicial process for the recovery of property.
Tan-Yap v. Patrick 2019

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The doctrine of "self-help" applies only when the person against
whom the owner has the right to use force (in order to exclude the
former from the latter's property) is really an "aggressor." In this
case, Sheri Alvarez was not an aggressor, as indeed he could not
have been one, because as an o cer or agent of the court, he was
simply carrying out his o cial duty to implement the writ of
execution.
Acts in a State of Necessity
ART 432. The owner of a thing has no right to prohibit the
interference of another with the same, if
1. the interference is necessary to avert an imminent
danger and
2. the threatened damage, compared to the damage
arising to the owner from the interference, is much
greater.
The owner may demand from the person bene ted
indemnity for the damage to him.
2. Limitations of ownership
a. Imposed by the State
i. Police Power
ART 436. When any property is condemned or seized by
competent authority in the interest of health, safety or
security, the owner thereof shall not be entitled to
compensation, unless he can show that such condemnation or
seizure is unjusti ed.
City Government of Quezon City v. Ericta
Reviewer
An ordinance that provides that at least 6% of the total area of the
memorial park cemetery shall be set aside for charity burial of
deceased persons who are paupers is being challenged. This is not a
mere police regulation but an outright con scation. It deprives a
person of his private property without due process of law, nay, even
without compensation.
OSG v. Ayala Land
The total prohibition against the collection of parking fees from
persons who use the mall parking facilities has no basis in the
National Building Code or its IRR. The State also cannot impose
the same prohibition by generally invoking police power, since said
prohibition amounts to a taking of respondents' property without
payment of just compensation.
MMDA v. Trackworks
MMDA's powers were limited to the formulation, coordination,
regulation, implementation, preparation, management, monitoring,
setting of policies, installing a system, and administration. Nothing
in RA 7924 granted MMDA police power, let alone legislative
power.
ii. Eminent Domain
ART 435. No person shall be deprived of his property except
by competent authority and for public use and always upon
payment of just compensation.
MCIAA v. Lozada, supra 2010 En Banc
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We now expressly hold that the taking of private property,
consequent to the Government's exercise of its power of eminent
domain, is ALWAYS subject to the condition that the property
be devoted to the speci c public purpose for which it was
taken. Corollarily, if this particular purpose or intent is not initiated
or not at all pursued, and is peremptorily abandoned, then the
former owners, if they so desire, may seek the reversion of the
property, subject to the return of the amount of just compensation
received. In such a case, the exercise of the power of eminent domain
has become improper for lack of the required factual justi cation.
Republic v. Heirs of Borbon 2015
The expropriator who has taken possession of the property subject
of expropriation is obliged to pay reasonable compensation to the
landowner for the period of such possession although the
proceedings had been discontinued on the ground that the public
purpose for the expropriation had meanwhile ceased.
b. Imposed by law
ART 431. The owner of a thing cannot make use thereof in
such manner as to injure the rights of a third person.
Ermino v. Golden Village Homeowners 2018 Caguioa, J
The bulldozing and construction works at the Hilltop City
Subdivision, made Alco Homes and Golden Village's obligation, as
lower estates, more burdensome than what the law contemplated.
Lower estates are only obliged to receive water naturally
owing from higher estates and such should be free from any
human intervention. In the instant case, what owed from Hilltop
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City Subdivision was not water that naturally owed from a higher a. Accession, not a mode of acquiring ownership iii. Sowing
estate. Alco Homes and Golden Village are not anymore obligated to
Accession is the right of a property owner to everything which is: b. Accession natural
receive such waters and earth coming from Hilltop City Subdivision.
a) Produced thereby (Accession discreta); i. Alluvium (Art 457)
Therefore, E.B. Villarosa is responsible for the damage su ered by
Spouses Ermino. E.B. Villarosa should have provided for the b) Or which is incorporated or attached thereto, either naturally ii. Avulsion (Art 459)
necessary measures such as retaining walls and drainage so that the or arti cially (Accession continua), which is either natural or iii. Change of course of rivers (Arts
large volume of water emanating from it would not unduly cause arti cial. 461-462)
inconvenience, if not injury, to the lower estates. b. Kinds of Accession iv. Formation of Islands (Arts 464 -465)
c. Imposed By The Grantor i. Accession Discreta 2. with respect to Personal Property
E.g. the donor may prohibit the donees from partitioning the 1. Natural fruits are the a. Adjunction or conjunction
property for a period not exceeding 20 years. a. spontaneous products of the soil, and b. Mixture

Roman Catholic Archbishop of Manila v. CA b. the young and other products of animals.
2. Industrial fruits are those produced by lands
The deed of donation involved herein expressly provides for
of any kind through cultivation or labor.
automatic reversion of the property donated in case of violation of
the condition therein, hence a judicial declaration revoking the same 3. Civil fruits are
is not necessary. The cause of action herein is based on the alleged
a. the rents of buildings,
breach by petitioners of the resolutory condition in the deed of
donation that the property donated should not be sold within a b. the price of leases of lands and other
period of one hundred (100) years from the date of execution of the property and
deed of donation. Said condition, in our opinion, constitutes an c. the amount of perpetual or life annuities or
undue restriction on the rights arising from ownership of other similar income.
petitioners and is, therefore, contrary to public policy.
ii. Accession Continua
d. Imposed By The Owner
1. with respect to Real Property
E.g. when the owner leases his property to another, said owner in
a. Accession industrial
the meantime cannot physically occupy the premises.
i. Building
2 Rules on Accession ii. Planting
i. Confusion - liquids;
ii. Commixtion - solids.
c. Speci cation.
1. Right to hidden treasure
ART 438. Hidden treasure belongs to the owner of the land,
building, or other property on which it is found.
Nevertheless, when the discovery is made on the property of
another, or of the State or any of its subdivisions, and by
chance, one-half thereof shall be allowed to the nder. If the
nder is a trespasser, he shall not be entitled to any share of the
treasure.
If the things found be of interest to science or the arts, the
State may acquire them at their just price, which shall be
divided in conformity with the rule stated.
ART 439. By treasure is understood, for legal purposes, any
hidden and unknown deposit of money, jewelry, or other

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precious objects, the lawful ownership of which does not

GF or BF owner of of material removal if 1. Refers to a land whose ownership is claimed by at least two
appear.
material not parties, one of whom has built some works thereon.
2. Rules of Accession injurious 2. Applies when builder
Right of Accession with respect to Immovable Property LO in GF; No right of a) acts in good faith believing himself to be the owner of the
Damages
ART 445. Whatever is built, planted or sown on the land of OM in BF removal land, or at least, to have a claim of title; or
another and the improvements or repairs made thereon, b) proceeded with the knowledge, tolerance, consent, or
Absolute
belong to the owner of the land, xxxx permission of owner.
LO in BF; Pays value right of
Basic principles of Accession Continua OM in GF + Damages removal + c) or in special cases where builder:
Damages
a. Accessory follows the principal. To the owner of the i) Built his house at the time he was still co-owner that
principal must belong also the accessions; Legend: LO = Landowner; OM = Owner of Material; GF = Good overlapped the land of another (Del Campo);
b. The union or incorporation must, within certain exceptions, be Faith; BF = Bad Faith ii) Built with consent of owner (Boyer-Roxas);
e ected in such a manner that to separate the principal from
⭐ART 448. The owner of the land on which anything has iii) Relied on consent of another they believed to be the
the accessory would result in substantial injury to either;
been built, sown or planted in good faith, shall have the right landowner (Sarmiento v. Agana);
c. He who is in good faith may be held responsible but he should
a) to appropriate as his own the works, sowing or iv) As son, built with knowledge and consent of his father
not be penalized;
planting, after payment of the indemnity provided for (Javier);
d. He who is in bad faith may be penalized; in articles 546 and 548, or
v) As children, built to lots owned by their parents who
e. No one should enrich himself unjustly at the expense of b) to oblige the one who built or planted to pay the invited them and fully consented to the improvements
another; price of the land, and the one who sowed, the proper introduced (Macasaet v. Sps Macasaet)
f. Bad faith of one party neutralizes the bad faith of the other so rent.
3. Inapplicable where one’s interest in the land is merely that of:
both should be considered in good faith. However, the builder or planter cannot be obliged to buy
a) A holder such as a tenant or lessee (Quevada, Mores);
the land if its value is considerably more than that of the
a Rights of builder/planter/sower in good faith building or trees. In such case, he shall pay reasonable rent, if b) An agent; or
the owner of the land does not choose to appropriate the c) A usufructuary (Macasaet)
LO OM building or trees after proper indemnity. The parties shall
Option Given to Landowner
agree upon the terms of the lease and in case of disagreement,
Rights Liabilities Rights Liabilities the court shall x the terms thereof. a. To appropriate improvement upon payment of the required
indemnity (Art. 546, 548, 448)
Both in Becomes Pays value Payment or

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1. Article 546. Necessary expenses shall be refunded to every
possessor; but only the possessor in good faith may retain the
thing until he has been reimbursed therefor.
2. Useful expenses shall be refunded only to the possessor in good
faith with the same right of retention, the person who has
defeated him in the possession having the option of refunding
the amount of the expenses or of paying the increase in value
which the thing may have acquired by reason thereof.
a) Forced lease is created wherein the court xes the
terms of lease. (Depra v. Dumlao)
b) Sell the property at public auction wherein proceeds
are applied rst to the land, then improvements.
c) Have improvements removed at builder’s expense.
Builder's/Sower's/Planter's Right to Retain Improvement
1. Right of Retention protects builders in good faith. It is to
right to indemnity.
ART 450. The owner of the land on which anything has been
built, planted or sown in bad faith
1. may demand
a. the demolition of the work, or
b. that the planting or sowing be removed, in order
to replace things in their former condition

3. Article 548. Expense for pure luxury or mere pleasure shall
not be refunded to the possessor in good faith; but he may
remove the ornaments with which he has embellished the
principal thing if it su ers no injury thereby, and if his
successors in the possession do not prefer to refund the
amount expended.
i. Liability of Builder to Account for Fruits Received
a) Whatever fruits he receives during period of retention
must be deducted from indemnity due to him;
Effect of Alienation by Owner of Land with Improvements
b) If Fruits > Indemnity, the excess shall be returned to
the landowner.
c) If building is occupied by the builder in GF,
landowner has no right to collect rent during period
of retention.
b. To oblige the builder or planter to pay the price of the land
and the sower, to pay the proper rent
i. When this right cannot be exercised
If value of LAND >> BUILDING.
ii. Fixing of Price; Remedies of the Landowner if
Builder/Planter Refuses to Pay
guarantee full and prompt reimbursement as it allows the at the expense of the person who built, planted or
actual possessor to remain in possession while he has not been sowed; OR
reimbursed for the necessary improvements.
2. he may compel
2. A builder in GF cannot be compelled to pay rentals during this
a. the builder or planter to pay the price of the land,
period nor be disturbed of his possession.
and
3. O setting of expenses with the fruits of builder in GF
b. the sower the proper rent.
prohibited.
ART 451. In the cases of the two preceding articles, the
4. Applies only to private land.
landowner is entitled to damages from the builder, planter or
sower.
1. A purchaser who buys land with improvements belonging to ART 452. The builder, planter or sower in bad faith is
another knowing such fact, places himself in the position of a entitled to reimbursement for the necessary expenses of
landowner in BF and must therefore pay for the indemnity. preservation of the land.
2. If new owner paid for the improvements, the action may still
be brought against him without prejudice to his right to
recover from the former owner. 1. Consequences of Bad Faith (Art. 449 and 450)
a. Article 450 applies when landowner chooses not to
3. Option transferred to purchaser if former owner fails to elect
either options. appropriate the improvements of the builder in BF. He may
elect to require builder to:
i. Remove at builder’s expense; or
ART 449. He who builds, plants or sows in bad faith on the
ii. Pay the price of land or proper rent in case of a sower.
land of another, loses what is built, planted or sown without

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b. In both instances, landowner is entitled to damages.
2. Rights of Builder/Planter/Sower in Bad Faith (Art. 452)
a. Examples of necessary expenses for preservation of land
i. Defense work to prevent erosion;
ii. Litigation expenses in defense of land against
usurpers.
iii. Real property taxes.
b. Right of Retention (Art. 546), Right to expenses of
production
i. Only possessor in GF is entitled to retain the thing
until he is fully reimbursed.
3. Rights of Owner of the Land (Art. 450-451)
a. To appropriate what has been built without obligation to pay
any indemnity therefor except for necessary expenses for the
preservation of the land + damages; or
b. To ask the removal or demolition + damages; or
c. To compel the builder or planter to pay the price of land
regardless if it is considerably higher than that of what was
built, and the sower, to pay rent + damages.
Balucanag v. Francisco
Stohner cannot be considered a builder in good faith. There is no
dispute that the relation between Balucanag and Stohner is that of
lessor and lessee.
The law applicable to the case at bar is Article 1678. This article
gives the lessor the option to appropriate the useful improvements
Reviewer
by paying one-half of their value; and the lessee cannot compel the
lessor to appropriate the improvements and make reimbursement.
But he shall not cause any more damage upon the property than is
necessary.
⭐Floreza v. Evangelista
Since petitioner cannot be classi ed as a builder in good faith within
the purview of Article 448, nor as a vendee a retro, who made useful
improvements during the lifetime of the pacto de retro, petitioner
has no right to reimbursement of the value of the house which
he had erected on the residential lot of the EVANGELISTAS,
much less to retention of the premises until he is reimbursed.
The rights of petitioner are more akin to those of a usufructuary
who, under Article 579, may make on the property useful
improvements but with no right to be indemnified therefor.
PNB v. De Jesus
Article 448 refers to a piece of land whose ownership is claimed
by two or more parties, one of whom has built some works (or
sown or planted something) and not to a case where the owner of
the land is the builder, sower, or planter who then later loses
ownership of the land by sale. In ne, petitioner is not in a valid
position to invoke the provisions of Article 448.
Heirs of Sarili v. Lagrosa 2014
As for Sps. Sarili, they knew – or at the very least, should have
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known – from the very beginning that they were dealing with a
person who possibly had no authority to sell the subject property
considering the palpable irregularity in the subject SPA’s
acknowledgment. It cannot be seriously doubted that Sps. Sarili were
actually aware of a aw or defect in their title or mode of acquisition
and have consequently built the house on the subject property in
bad faith under legal contemplation.
Ballatan, et.al. v. CA
Go built his house in the belief that it was entirely within the
parameters of his father's land. In short, respondents Go had no
knowledge that they encroached on petitioners' lot. They are deemed
builders in good faith until the time petitioner Ballatan informed
them of their encroachment on her property. Article 448 has been
applied to improvements or portions of improvements built by
mistaken belief on land belonging to the adjoining owner.
In the event that petitioners elect to sell to respondents Go the
subject portion of their lot, the price must be xed at the
prevailing market value at the time of payment.
Communities Cagayan, Inc. v. Sps Nanol 2012
As a general rule, Article 448 on builders in good faith does not
apply where there is a contractual relation between the
parties, such as in the instant case. However, the parties failed to
attach a copy of the Contract to Sell. As such, we are constrained to
apply Article 448.
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Vda. de Roxas v. Our Lady’s Foundation 2013
Ballatan v. CA already speci es that in the event that the seller
elects to sell the lot, “the price must be xed at the prevailing
market value at the time of payment.” More recently, Tuatis v.
Sps Escol illustrates that the present or current fair value of the
land is to be reckoned at the time that the landowner elected
the choice, and not at the time that the property was purchased.
In Sarmiento v. Agana, we reckoned the valuation of the property
at the time that the real owner of the land asked the builder to vacate
the property encroached upon. Depra v. Dumlao likewise ordered
the courts of origin to compute the current fair price of the land in
cases of encroachment on real properties.
Parilla v. Pilar
Petitioners, being dealers of Pilipinas Shell's petroleum products,
were allowed to occupy the property. Petitioners are thus considered
agents of Pilipinas Shell. As the law on lease has speci c rules
concerning useful improvements introduced by a lessee on the
property leased, it is erroneous on the part of petitioners to
urge this Court to apply Article 448, in relation to Article 546.
It does not apply where one's only interest is that of a lessee under a
rental contract; otherwise, it would always be in the power of
the tenant to "improve" his landlord out of his property.
Kilario v. CA
Neither did the promise of the Padas that they were going to donate
the premises to petitioners convert them into builders in good faith
Reviewer
for at the time the improvements were built on the premises, such
promise was not yet ful lled, i.e., it was a mere expectancy of
ownership that may or may not be realized. As such, petitioners
cannot be said to be entitled to the value of the improvements that they
built on the said lot.
2. Sources
C Co-ownership
ART 484. There is co-ownership whenever the ownership of
an undivided thing or right belongs to di erent persons.
Exists whenever an undivided thing or right belongs to
di erent persons.
Requisites
a. Plurality of owners;
b. Object is undivided;
c. Each co-owner’s right is limited only to his ideal share of the
physical value.
1. Characteristics
a) There are at least two co-owners;
b) Co-owner of the whole and at the same time absolute owner
of his own ideal (abstract, pro indiviso, fractional, aliquot) but
de nite share.
c) There is a single object which is not materially divided and
over which and his ideal share of the whole, each co-owner
exercises ownership, together with the other co-owners;
3. Rights of co-owners
d) There is no mutual representation by the co-owners;
Share of Co-Owners in Benefits and Charges
e) It exists for the common enjoyment of the co-owners;
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f) It has no distinct legal personality; and
g) It is governed by the contract of the parties, otherwise, by
special legal provisions, and in default, by Title III on
Co-ownership.
a) Contract;
b) Law — easement of party walls, absolute community of
property between spouses;
c) Succession;
d) Testamentary disposition, or donation inter vivos;
e) Fortuitous event or chance — commixtion or confusion;
f) Occupancy.
Gapacan v. Omipet
A property owner whose property rights were being disturbed may
ask a competent court for a proper determination of the respective
rights of the party-claimants.
As the two (2) surviving heirs of Paicat Gapacan, neither Maria nor
Antonio can claim absolute ownership over the entire property to
the prejudice of the other, for each, in legal contemplation, is entitled
to only one-half (1/2) pro-indiviso share of his or her father's estate.
Prior to partition, Maria and Antonio, and upon the latter's death,
the petitioners, hold the disputed property in their capacity as
co-owners.
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ART 485. The share of the co-owners, in the bene ts as well as
in the charges, shall be proportional to their respective
interests. Any stipulation in a contract to the contrary shall
be void.
The portions belonging to the co-owners in the co-ownership
shall be presumed equal, unless the contrary is proved.
Renunciation by a Co-owner of his Share in the Co-ownership
Is in reality a case of dacion en pago. It is not a unilateral act which
will extinguish an existing liability of co-owner without formal
acceptance by the others.
It must be a free act. He who has not renounced may be compelled
by an action in court to pay his share in the necessary expenses.
Right of any Co-Owner to Recover, Limitation of Right of
Co-Owner
ART 486. Each co-owner may use the thing owned in
common xxxx
ART 487. Any one of the co-owners may bring an action in
ejectment.
Torres, Jr. v. Lapinid 2014
In this case, Jesus can validly alienate his co-owned property in favor
of Lapinid, free from any opposition from the co-owners. From the
perfection of contract, Lapinid eventually became a co-owner of the
property.
No individual can claim title to a de nite or concrete portion before
partition of co-owned property. Each co-owner only possesses a right
to sell or alienate his ideal share after partition. However, in case he
disposes his share before partition, such disposition does not make
Reviewer
the sale or alienation null and void. What will be a ected on the sale
is only his proportionate share, subject to the results of the partition.
Adlawan v. Adlawan
Where the suit is for the bene t of the plainti alone who
claims to be the sole owner and entitled to the possession of
the litigated property, the action should be dismissed.
Here, petitioner brought the suit for unlawful detainer in his name
alone and for his own bene t to the exclusion of the heirs of
Graciana as he even executed an a davit of self-adjudication over the
disputed property. It is clear therefore that petitioner cannot validly
maintain the instant action considering that he does not recognize
the co-ownership.
Resuena v. CA
A co-owner may bring an action to exercise and protect the rights of
all. When the action is brought by one co-owner for the bene t of
all, a favorable decision will bene t them; but an adverse decision
cannot prejudice their rights.
Carandang v. De Guzman
Milagros de Guzman, being presumed to be a co-owner of the credits
allegedly extended to the spouses Carandang, seems to be either an
indispensable or a necessary party. Taken with the presumption of
the conjugal nature of the funds used to nance the four checks used
to pay for petitioners' stock subscriptions, and with the presumption
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that the credits themselves are part of conjugal funds, Article 1811
makes Quirino and Milagros de Guzman co-owners of the alleged
credit. Being co-owners of the alleged credit, Quirino and Milagros
de Guzman may separately bring an action for the recovery thereof.
Milagros de Guzman is not an indispensable party in the action
for the recovery of the allegedly loaned money to the spouses
Carandang.
Expenses for Preservation, Useful Expenses
ART 488. Each co-owner shall have a right to compel the other
co-owners to contribute to the expenses of preservation of
the thing or right owned in common and to the taxes. xxxx
ART 489. Repairs for preservation may be made at the will
of one of the co-owners, but he must, if practicable, rst
notify his co-owners of the necessity for such repairs.
Expenses to improve or embellish the thing shall be decided
upon by a majority as determined in article 492.
Renunciation by a Co-Owner of his share in the Co-Ownership
ART 488. xxxx Any one of the latter may exempt himself from
this obligation by renouncing so much of his undivided
interest as may be equivalent to his share of the expenses and
taxes. No such waiver shall be made if it is prejudicial to
the co-ownership.
Alteration of a Property under Co-Ownership
ART 491. None of the co-owners shall, without the consent of
the others, make alterations in the thing owned in common,
even though bene ts for all would result therefrom.
However, if the withholding of the consent by one or more of
the co-owners is clearly prejudicial to the common interest,
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the courts may a ord adequate relief.
ART 492. For the administration and better enjoyment of the
thing owned in common, the resolutions of the majority of
the co-owners shall be binding.
There shall be no majority unless the resolution is approved by
the co-owners who represent the controlling interest in the
object of the co-ownership.
Should there be no majority, or should the resolution of the
majority be seriously prejudicial to those interested in the
property owned in common, the court, at the instance of an
interested party, shall order such measures as it may deem
proper, including the appointment of an administrator.
De nition of Alteration
1. Involves change of the thing from the state or essence in which
the others believe it should remain; or
2. Withdrawal of the thing from the use to which they wish it to
be intended; or
3. Any other transformation which prejudices the condition or
substance of the thing or its enjoyment by others.
4. Any act of ownership — alienation, donation, lease, mortgage,
pledge.
Necessity of Consent, Form
1. Unanimous consent;
2. May be expressly or impliedly given.
Liability. — If the co-owner makes the alteration without the consent
of others, he acts in bad faith and must:
1. Lose what he has spent;
Reviewer
2. Be obliged to demolish the improvements done, and
3. Be liable to pay for losses and damages that may have been
su ered.
Acts of Administration and Better Enjoyment
1. Contemplates of acts or decisions for the common bene t of
all the co-owners and not for the bene t of only one or some.
2. Merely transitory, while alteration is more or less permanent.
Examples
1. Unregistered lease of one year or less;
2. Legal fees to preserve ownership and possession of property;
3. Payment made in the ordinary course of management.
Majority Rule
1. For the administration and better enjoyment of the thing
owned in common, the resolutions of the majority of the
co-owners shall be binding.
2. There shall be no majority unless the resolution is approved by
the co-owners who represent the controlling interest in the
object of the co-ownership.
⭐Cruz v. Catapang on entry by strategy
A co-owner cannot give valid consent to another to build a house on
the co-owned property, which is an act tantamount to devoting the
property to his or her exclusive use. Giving consent to a third person
to construct a house on the co-owned property will injure the
interest of the co-ownership and prevent other co-owners from using
the property in accordance with their rights.
The construction of a house on the co-owned property is an
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act of dominion. Therefore, it is an alteration falling under Article
491. The consent given by Norma Maligaya in the absence of the
consent of petitioner and Luz Cruz did not vest upon respondent
any right to enter into the co-owned property. Her entry into the
property still falls under the classi cation “through strategy
or stealth.” As such, respondent’s acts constitute forcible entry.
⭐Arambulo v. Nolasco 2014 on adequate relief of Art 491
Corollary to Article 494, Article 498 of the Civil Code states that
whenever the thing is essentially indivisible and the co-owners
cannot agree that it be allotted to one of them who shall indemnify
the others, it shall be sold and its proceeds accordingly distributed.
This is resorted to
a) when the right to partition the property is invoked by any of
the co-owners but because of the nature of the property, it
cannot be subdivided or its subdivision would
prejudice the interests of the co-owners, and
b) the co-owners are not in agreement as to who among them
shall be allotted or assigned the entire property upon proper
reimbursement of the co-owners.
This is the result obviously aimed at by petitioners at the outset. As
already shown, this cannot be done while the co-ownership exists.
Extent of Co-Owner’s Right
Paulmitan v. CA
Although petitioner Fanesa did not acquire ownership over the
entire lot by virtue of the redemption she made, nevertheless, she did
acquire the right to be reimbursed for half of the redemption price
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she paid to the Provincial Government of Negros Occidental on
behalf of her co-owners. Until reimbursed, Fanesa holds a lien upon
the subject property for the amount due her.
Sanchez v. CA
In co-ownership, the relationship of such co-owner to the other
co-owners is duciary in character and attribute.
Thus, the legal e ect of an agreement to preserve the properties in
co-ownership is to create an express trust among the heirs as
co-owners of the properties. Co-ownership is a form of trust and
every co-owner is a trustee for the others.
Nufable v. Nufable
Well-entrenched is the rule that a co-owner can only alienate his
pro indiviso share in the co-owned property.
Therefore, as regards the remaining ¾ pro indiviso share, the same
was held in trust for the party rightfully entitled thereto, who are
the private respondents herein.
Sale or Mortgage of Common Property
Effect of Redemption of Co-Owned Property by one Co-Owner
Pamplona v. Moreto
The title may be pro-indiviso or inchoate but the moment the
co-owner as vendor pointed out its location and even indicated
the boundaries over which the fences were to be erected
without objection, protest or complaint by the other
co-owners, on the contrary they acquiesced and tolerated such
Reviewer
alienation, occupation and possession, We rule that a factual
partition or termination of the co-ownership, although
partial, was created, and barred not only the vendor, Flaviano
Moreto, but also his heirs, the private respondents herein from
asserting as against the vendees-petitioners any right or title in
derogation of the deed of sale executed by said vendor Flaviano
Moreto.
Sps Del Campo v. CA
Where the transferees of an undivided portion of the land allowed a
co-owner of the property to occupy a de nite portion thereof and
had not disturbed the same for a period too long to be ignored, the
possessor is in a better condition or right than said transferees. Such
undisturbed possession had the e ect of a partial partition of
the co-owned property which entitles the possessor to the de nite
portion which he occupies.
Although Regalado's certi cate of title became indefeasible after the
lapse of one year from the date of the decree of registration, the
attendance of fraud in its issuance created an implied trust in
favor of petitioners and gave them the right to seek reconveyance of
the parcel wrongfully obtained by the former.
Adille v. CA
May a co-owner acquire exclusive ownership over the property held in
common?
NO. The right of repurchase may be exercised by a co-owner with
respect to his share alone. Necessary expenses may be incurred by
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one co-owner, subject to his right to collect reimbursement from the
remaining co-owners. There is no doubt that redemption of
property entails a necessary expense.
Prescription, as a mode of terminating co-ownership, must have
been preceded by repudiation of the co-ownership. The act of
repudiation, in turn, is subject to certain conditions:
1) a co-owner repudiates the co-ownership;
2) such an act of repudiation is clearly made known to the
other co-owners;
3) the evidence thereon is clear and conclusive; and
4) he has been in open, continuous, exclusive, and
notorious possession of the property for the period
required by law.
Here, the right of the respondents commenced from the time they
actually discovered the petitioner's act of defraudation.
Aguilar v. Aguilar
The following are the requisites for the exercise of legal
redemption:
1) There must be a co-ownership;
2) one of the co-owners sold his right to a stranger;
3) the sale was made before the partition of the co-owned
property;
4) the right of redemption must be exercised by one or more
co-owners within a period of thirty days to be counted
from the time that he or they were noti ed in writing by
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the vendee or by the co-owner vendor; and
5) the vendee must be reimbursed for the price of the sale.
We have held that after a property has been subdivided and
distributed among the co-owners, the community has
terminated and there is no reason to sustain any right of
pre-emption or redemption.
Sps Pascual v. Sps Ballesteros 2012
The 30-day period given to the respondents within which to exercise
their right of redemption has not commenced in view of the absence
of a written notice. Verily, despite the respondents’ actual
knowledge of the sale to the respondents, a written notice is still
mandatory and indispensable.
Reyes v. Concepcion
In this jurisdiction, the legal provisions on co-ownership do not
grant to any of the owners of a property held in common a
pre-emptive right to purchase the pro-indiviso shares of his
co-owners.
Here, no sale of the latter's pro-indiviso shares to a third party had
yet been made. Thus, Article 1620 nds no application to the case at
bar. Neither do petitioners have the legal right to enjoin respondents
from alienating their pro-indiviso shares to a third party. The rights
of a co-owner of a property are clearly speci ed in Article 493. None
of the legal exceptions under Article 494 applies to the case at bar.
Reviewer for the 2022 Bar
When Right to Demand Partition Not Available
4. Termination
ART 494. No co-owner shall be obliged to remain in the ⭐ART 498. Whenever the thing is essentially
co-ownership. Each co-owner may demand at any time the indivisible and the co-owners cannot agree that it be allotted
partition of the thing owned in common, insofar as his share is to one of them who shall indemnify the others, it shall be sold
concerned. and its proceeds distributed.
Nevertheless, an agreement to keep the thing undivided for a Effects of Partition
certain period of time, not exceeding ten (10) years, shall be 1. Mutual accounting for bene ts received;
valid. This term may be extended by a new agreement.
2. Mutual reimbursement for expenses;
A donor or testator may prohibit partition for a period
3. Indemnity for damages in case of negligence or fraud;
which shall not exceed twenty (20) years.
4. Reciprocal warranty for
Neither shall there be any partition when it is prohibited by
law. a. Defects of title or eviction;
No prescription shall run in favor of a co-owner or co-heir b. Quality or hidden defects.
against his co-owners or co-heirs so long as he expressly or
5. Each former co-owner is deemed to have had exclusive
impliedly recognizes the co-ownership.
possession of the part allotted to him for the entire period
Exceptions during which the co-possession lasted.
1. When co-owners have agreed to keep the thing undivided for a 6. Confers upon each, the exclusive title over his respective share.
certain period of time not exceeding ten years;
Termination of Co-Ownership
2. Prohibited by the donor or testator for a certain period not
1. Judicial partition;
exceeding twenty years;
2. Extrajudicial partition;
3. Prohibited by law;
3. When by prescription, one co-owner has acquired the whole
4. Partition would render the thing unserviceable (Art 495); and
property by adverse possession;
5. Co-owner has possessed the property as exclusive owner and
4. When a stranger acquires by prescription the thing owned in
for a period su cient to acquire it by prescription
common;
Prescription
5. Merger in one co-owner;
Generally, imprescriptible unless properly repudiated. In such case,
6. Loss or destruction;
action prescribes ten (10) years after repudiation.
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7. Expropriation.
Aguilar v. CA
When petitioner led an action to compel the sale of the
property and the trial court granted the petition and ordered
the ejectment of respondent, the co-ownership was deemed
terminated and the right to enjoy the possession jointly also ceased.
Quintos v. Nicolas 2014
There can still be res judicata in partition cases concerning the same
parties and the same subject matter once the respective shares of the
co-owners have been determined with nality by a competent court
with jurisdiction or if the court determines that partition is improper
for co-ownership does not or no longer exists.
⭐Figuracion v. Figuracion-Gerilla 2013
The rst stage in an action for partition is the settlement of
the issue of ownership. Such an action will not lie if the claimant
has no rightful interest in the subject property.
When Hilaria and Felipa registered the lot in their names to the
exclusion of Emilia, an implied trust was created by force of law
and the two of them were considered a trustee of the respondent’s
undivided share. As trustees, they cannot be permitted to repudiate
the trust by relying on the registration.
⭐Delima v. CA
Reviewer
When a co-owner of the property in question executed a deed of
partition and on the strength thereof obtained the cancellation of
the title in the name of their predecessor and the issuance of a new
one wherein he appears as the new owner of the property, the statute
of limitations started to run for the purposes of the action seeking a
declaration of the existence of the co-ownership and of their rights
thereunder. Since an action for reconveyance of land based on
implied or constructive trust prescribes after ten (10) years, it is
from the date of the issuance of such title that the e ective assertion
of adverse title for purposes of the statute of limitations is counted.
As the certi cate of title was notice to the whole world of his
exclusive title to the land, such rejection was binding on the
other heirs and started as against them the period of
prescription. Hence, when petitioners led their action for
reconveyance and/or to compel partition on February 29, 1968, such
action was already barred by prescription.
⭐Mariategui v. CA
Inasmuch as petitioners registered the properties in their names in
fraud of their co-heirs, prescription can only be deemed to have
commenced from the time private respondents discovered the
petitioners’ act of defraudation.
D Possession
ART 523. Possession is the holding of a thing or the enjoyment
of a right.
1 Kinds of possession
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Elements of Possession
a. There must be a holding or control of a thing or a right.
b. Animus possidendi;
c. Possession must be by virtue of one’s own right;
Degrees of Possession
a) Mere holding without any right;
b) Possession with juridical title; (juridical possession)
c) Possession with a just title; (real possessory right)
d) Possession with a title of dominium. (ownership)
Some Presumptions re Possession
a) Good faith is always presumed;
b) Continuity of character of possession whether in good or bad
faith;
c) Non-interruption;
d) Presumption of just title of a possessor in the concept of an
owner who is not obliged to show or prove it.
e) Non-interruption of possession of property unjustly lost but
legally recovered (Art 561);
f) The present possessor who was also the possessor at a previous
time, has continued to be in possession during the intervening
time, unless there is proof to the contrary;
g) The possession of real property presumes that of the movables
therein;
h) Each one of the participants of a thing possessed in common
shall be deemed to have exclusively possessed the part which
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may be allotted to him upon the division thereof, for the entire
period during which the co-possession lasted.
Kinds of Titles
1) True and Valid Title. There was a mode of transferring
ownership and the grantor was the owner. This is the just title
referred to in Art 541.
2) Colorable Title. Although there was a mode of transferring
ownership, the grantor is NOT the owner. This is the just title
in the law of prescription.
3) Putative Title. Although a person believes himself to be the
owner, he nonetheless is not since there was NO mode of
acquiring ownership.
Possession in the concept of an owner and of a mere holder
ART 540. Only the possession acquired and enjoyed in the
concept of owner can serve as a title for acquiring dominion.
Estreller v. Ysmael and Alvarez
A co-owner may le an action for recovery of possession without the
necessity of joining all the other co-owners as co-plainti s since the
suit is deemed to be instituted for the bene t of all.
Possession in Good Faith and Possession in Bad Faith
Manotok Realty v. CA
A possessor in good faith is one who is not aware that there
exists in his title or mode of acquisition any aw which invalidates it.
Villamil v. Villarosa
There were no traces of bad faith on Villarosa's part in acquiring the
subject property by purchase. When he visited the site, he inquired
2 Acquisition of possession
from Tolentino about the un nished structure and was informed
that the latter allegedly ran out of money and eventually lost interest Acquisition of Possession, Requisites
in pursuing the construction because of his old age. Villarosa was
a. Material occupation;
then given a copy of the title. He went to the Register of Deeds and
was able to verify the authenticity of the title. b. Subjection of the thing or right to the will of possessor;
In sum, Villarosa was able to establish good faith when he bought c. Proper acts and legal formalities.
the subject property. Essential requisites
Holder of Torrens Title, Right to Possession a) For personal acquisition
i) Intent
Sps Apostol v. CA
ii) Capacity
In Pangilinan v. Aguilar, the Court held that it is an accepted
iii) Object must be capable of being possessed.
rule that a person who has a torrens title over the property,
such as the respondents, is entitled to the possession thereof. b) Through an authorized person
This is reiterated in Javelosa v. CA, declaring that the registered
i) Intent to possess for principal;
owners are entitled to the possession of the property covered by the
ii) Authority or capacity to possess for another;
said title from the time such title was issued in their favor. Moreover,
the fact that the respondents were never in prior physical possession iii) Principal has intent and capacity to possess.
of the subject land is of no moment, as prior physical possession is
c) Through an unauthorized person, as in negotiorum gestio
necessary only in forcible entry cases.
i) Intent to possess for another;
ii) Capacity of principal to possess;
Villa v. Heirs of Altavas
iii) Rati cation by principal.
Being a mere lessee, petitioner steps into the shoes of her lessor,
3 E ects of possession
Virginia. However, Virginia's claim of ownership was not sustained
by the MCTC, which instead found that she was not the owner of
Wolfson v. Aenlle
and had no right to possess the disputed property or to transfer
possession of the same, through lease, in favor of another person. In order to bar the true owner of land from recovering it from an

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and substance of a thing. It is merely a natural element

occupant in adverse possession and claiming ownership through the b) VOLUNTARY or CONVENTIONAL
since it can be eliminated by a contrary stipulation.
operation of the statute of limitations, the possession must have
i) By will of the parties INTER VIVOS;
been, for the whole period prescribed by the statute, actual, open, c) ACCIDENTAL, which depends upon the stipulation of the
visible, notorious, continuous, and hostile to the true owner's parties. Examples are: ii) Created MORTIS CAUSA, as in last will.
title and to the world at large. It is also essential that the possession c) MIXED or PRESCRIPTIVE. Created by both law and act of
i) Whether it be pure or conditional usufruct;
must have been held under claim of right or color of title. person.
ii) The number of years it will exist;
As to Quantity or Extent of Fruits or Object
iii) Whether it is in favor of one or several persons.
a) As to fruits — total or partial;
E Usufruct Object
b) As to object
Usufruct is the right to enjoy the property of another, with the a) May be real or personal property;
i) Universal — over the entire patrimony;
obligation of preserving its form and substance. It is a real right, of b) May be sterile or productive;
a temporary nature, which authorizes its holder to enjoy all the ii) Singular or Particular.
c) May be created over a right as long as it is not strictly personal
bene ts which result from the normal enjoyment of another’s
or intransmissible, and as long as it has an independent As to Number of Persons Enjoying the Right
property, with the obligation to return, at the designated time,
existence. Thus, there can be no usufruct over an easement. a) Simple;
either the same thing, or its equivalent.
What is “Abnormal Usufruct”? b) Multiple –
Usufruct = Full Ownership – Naked Ownership
The obligation of conserving or preserving the form and substance i) Simultaneous;
1 In general of the thing may be provided otherwise by the title or the law,
ii) Successive.
giving rise to an abnormal or imperfect or irregular usufruct, such
1. Characteristics as the usufruct over sterile animal. As to Quality or Kind of Object

a) ESSENTIAL Causes or Sources of Usufruct (Art 563) a) Usufruct over RIGHTS as long as it is not strictly personal or
intransmissible;
i) It is a REAL right; Must be duly registered to bind a) by law,
third parties. b) Usufruct over THINGS
b) by the will of private persons expressed in acts inter vivos or in
ii) Of a temporary nature or duration; a last will and testament, and i) NORMAL or perfect or regular, which involves
non-consumable things where the form and substance
iii) Its purpose is to enjoy the bene ts and derive all c) by prescription.
are preserved.
advantages from the object.
2. Classi cation ii) ABNORMAL or imperfect or irregular. Involves
b) NATURAL
As to Origin usufruct over
i) The obligation of conserving or preserving the form
a) LEGAL. Created by law. 1) Consumable property

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2) Non-consumables that gradually deteriorate by ART 568. If the usufructuary has leased the lands or ii) SET OFF the improvements against damages for
use. tenements given in usufruct, and the usufruct should expire which he may be liable.
As to Terms or Conditions before the termination of the lease, he or his heirs and ART 580. The usufructuary may set o the improvements
successors shall receive only the proportionate share of the he may have made on the property against any damage to the
a) PURE
rent that must be paid by the lessee. same.
b) With a term or period
Simply put ART 581. The owner of property the usufruct of which is
i) ex die — from a certain day
a) If the duration of usufruct is ful lled, then all pro ts go held by another, may alienate it, but he cannot alter its form
ii) in diem — up to a certain day; to the usufructuary. or substance, or do anything thereon which may be prejudicial
iii) ex die in diem — from a certain day up to a certain to the usufructuary.
b) If, say only half of the duration is ful lled, then only half
day. of the total pro ts for the entire duration of the usufruct Rights of Usufructuary, Ungathered Fruits
c) With a condition. go to the usufructuary, while the other half to the owner.
This is regardless of when the pro t accrued. Fabie v. David
2 Rights and obligations of the usufructuary E ect of the Deterioration on the Liability of Usufructuary Who has the right to manage or administer the property—to select the
If these fast deteriorating things deteriorate due to tenant and to fix the amount of the rent? We nd that the said
Rules on Pending Natural or Industrial Fruits
usufructuary has the right to administer the property in question.
a) Fruits pending at the BEGINNING of usufruct a) NORMAL USE, the usufructuary is NOT liable;

i) Belong to the usufructuary; b) An event or act that endangers their preservation, the
usufructuary is required under Art 592 to make the Hemedes v. CA
ii) No necessity of refunding owner for expenses NECESSARY or ORDINARY REPAIRS.
incurred; Only the jus utendi and jus fruendi over the property is transferred
c) FRAUD amounting to an EVASION of the obligation to
iii) BUT without prejudice to the right of third persons, to the usufructuary. There is no doubt that the owner may validly
preserve, or NEGLIGENCE, the usufructuary is liable. Such
such as possessors in good faith as per Art 545. mortgage the property in favor of a third person.
liability may however be OFFSET against improvements.
b) Fruits pending at the TERMINATION of usufruct Being an innocent mortgagee for value, R & B Insurance validly
Useful and Luxurious Improvements (Art 579)
acquired ownership over the property, subject only to the
i) Belong to the OWNER; a) Usufructuary must not alter the form or substance of the usufructuary rights of Justa Kausapin thereto, as this
ii) BUT the owner must reimburse the usufructuary for property held in usufruct. encumbrance was properly annotated upon its certi cate of title.
ordinary cultivation expenses and for the seeds and b) He is NOT ENTITLED to a REFUND, but he may
similar expenses. Effect of Transfer of Rights and Alienation of Thing in
i) REMOVE the improvements if no substantial Usufruct
iii) Rights of innocent third parties should also not be damage is caused to the property in usufruct; OR
prejudiced. a) Naked owner may alienate the property held in usufruct;

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b) BUT he cannot alter its form or substance;
c) Or do anything prejudicial to the usufructuary;
d) The purchaser must respect the usufruct in case it is registered
or known to him. Otherwise, he can oust the usufructuary,
who can then look to the naked owner for damages.
e) If property is bequeathed or devised, the heir must also respect
the usufruct.
Rules on Abnormal Usufruct on Consumables
a) The usufructuary can use them as if he is the owner, with
complete right of pledge or alienation;
b) BUT at the end of the usufruct, he must
i) Pay the APPRAISED value; or
a) The owner must be previously NOTIFIED;
b) The condition of the immovables must be described;
c) The movables must be appraised;
d) As a rule, NO FORM is required except that when there are
real properties, Art 1358 demands a public instrument to
a ect third parties.
e) Expenses are to be borne by the usufructuary;
f) E ect of not making inventory same as when security is not
given;
g) When inventory is NOT required
i) When no one will be injured thereby provided the
naked owner consents;
v) When there is Caucion juratoria.
ART 586. Should the usufructuary fail to give security in
the cases in which he is bound to give it, the owner may
demand that the
a) immovables be placed under administration,
b) movables be sold,
c) public bonds, instruments of credit payable to order
or to bearer be converted into registered certi cates or
deposited in a bank or public institution, and
d) capital or sums in cash and the proceeds of the sale of
the movable property be invested in safe securities.
E ects of Failure to Give Security unless exempted

ii) If there is no appraisal, return the same kind, quality,
and quantity OR pay the price current at the
termination of the usufruct.
The Giving of Security
Obligations of the Usufructuary, Effect of Failure to Make an
Inventory
ART 583. The usufructuary, before entering upon the
enjoyment of the property, is obliged:
1) To make, after notice to the owner or his legitimate
representative, an inventory of all the property,
which shall contain an appraisal of the movables and
a description of the condition of the immovables;
2) To give security, binding himself to ful ll the
obligations imposed upon him xxxx.
Requirements for the Making of Inventory
ii) In case of waiver by the naked owner or the law, or
when there is a stipulation in a will or contract.
a) Purpose is to insure faithful compliance of the duties of the
usufructuary.
b) Any kind of su cient security should be allowed — such as
cash or personal bond, mortgage, etc.
c) When security NOT required (Art 584, 585)
i) When no one will be injured or prejudiced;
ii) When there is a waiver by the naked owner;
iii) When the usufructuary is the DONOR of the
property;
iv) When there is a parental usufruct except when the
parents contract a second marriage.;
a) On the Rights of Naked Owner –
i) He may deliver the property to the usufructuary; OR
ii) The naked owner may choose RETENTION of the
property as ADMINISTRATOR; OR
iii) The naked owner may demand RECEIVERSHIP or
administration by another of the real property, sale of
movable, conversion or deposit of credit instruments,
or investment of cash or pro ts.
b) On the Rights of Usufructuary –
i) He cannot possess the property until he gives the
security.
ii) He cannot administer the property, hence, he cannot
execute a lease thereon;

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iii) He cannot collect credits that have matured, nor ART 593. Extraordinary repairs shall be at the expense of b) Of retention till paid.
invest them unless the Court or naked owner the OWNER. The usufructuary is obliged to notify the Charges the Usufructuary must pay
consents; owner when the need for such repairs is urgent.
a) Annual charges on the fruits;
iv) But he can alienate his right to the usufruct. The ART 594. If the owner should make the extraordinary repairs,
grantee steps into the shoes of the usufructuary. b) Annual taxes on the fruits;
he shall have a right to demand of the usufructuary the legal
ART 587. Refers to — Caucion juratoria which takes the c) Theoretically, also the annual taxes on the land. However, refer
interest on the amount expended for the time that the
to BAA of Zamboanga del Sur case.
place of a bond, and is made by taking an oath to ful ll usufruct lasts.
properly the duties of a usufructuary. It is based on necessity d) Other charges on fruits:
Should he not make them when they are indispensable for the
and humanity as when a poor family acquires by inheritance, i) Ordinary repairs;
preservation of the thing, the usufructuary may make them;
the usufruct of a badly needed house.
but he shall have a right to demand of the owner, at the ii) Necessary cultivation expenses;
Requisites before Caucion juratoria is Allowed termination of the usufruct, the increase in value which the
immovable may have acquired by reason of the repairs. When Noti cation by Usufructuary Required and E ects of
a) Proper court petition; Non-compliance
Kinds of Extraordinary Repairs and who to pay
b) Necessity for delivery of furniture, implements or house a) If a third party commits acts prejudicial to the rights of
included in the usufruct; a) Those caused by natural use but NOT needed for ownership — Usufructuary is liable for damages.
preservation;
c) Approval of the court; b) If urgent repairs are needed — Usufructuary cannot make the
b) Those caused by ABNORMAL or exceptional circumstances extraordinary repairs needed.
d) Sworn promise.
AND needed for preservation;
If caucion juratoria is allowed, the usufructuary cannot alienate or c) If an inventory at the beginning of the usufruct is to be made.
c) Those caused by ABNORMAL or exceptional circumstances — Naked owner may later point out discrepancies and
lease the property for this means he does not need it.
but NOT needed for preservation; omissions in the inventory.
ART 592. The usufructuary is obliged to make the ordinary
Before the usufructuary is allowed to make extraordinary repairs,
repairs needed by the thing given in usufruct. ART 602. The expenses, costs and liabilities in suits brought
the following requisites must concur:
with regard to the usufruct shall be borne by the usufructuary.
By ordinary repairs are understood such as are required by the
a) There must be due noti cation to naked owner of urgency;
wear and tear due to the natural use of the thing and are
b) The naked owner failed to make them; BAA of Zamboanga Del Sur v. Samar Mining
indispensable for its preservation. Should the usufructuary fail
to make them after demand by the owner, the latter may make c) The repair is needed for preservation. It is well settled that a real tax, being a burden upon the capital,
them at the expense of the usufructuary. should be paid by the owner of the land and not by a usufructuary.
The usufructuary who has made extraordinary repairs has the
RIGHT
a) To get increase in value or get reimbursement of expenses;

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3 Extinguishment
ART 603. Usufruct is extinguished:
1) By the death of the usufructuary, unless a contrary
intention clearly appears;
2) By the expiration of the period for which it was
constituted, or by the ful llment of any
resolutory condition provided in the title creating
the usufruct;
3) By merger of the usufruct and ownership in the
same person;
4) By renunciation of the usufructuary;
5) By the total loss of the thing in usufruct;
6) By the termination of the right of the person
constituting the usufruct;
Death of Usufructuary — Exceptions:
7) By prescription.
ART 605. Usufruct cannot be constituted in favor of a town,
corporation, or association for more than fty years. xxxx
ART 606. A usufruct granted for the time that may elapse
before a third person attains a certain age, shall subsist for
the number of years speci ed, even if the third person should
die before the period expires, unless such usufruct has been
expressly granted only in consideration of the existence of such
person.
Other Causes of Extinguishment of Usufruct
Effect of “Bad Use” of the Thing
a) Which does not cause considerable injury to the naked
owner. Usufruct continues. Naked owner cannot demand
Reviewer for the 2022 Bar
administration.
d) Legal causes, as when attainment of age of majority
b) Which causes considerable injury. Usufruct continues, but extinguishes parental usufruct.
naked owner can DEMAND delivery to and administration by
him, but he will be obliged to pay NET PROCEEDS to Moralidad v. Sps Pernes
usufructuary. Naked owner gets paid administration fees and
Whether the existing usufruct may be deemed to have been
expenses.
extinguished or terminated.
ART 611. A usufruct constituted in favor of several persons
The continuing animosity between the petitioner and the Pernes
living at the time of its constitution shall not be extinguished
family and the violence and humiliation she was made to endure,
until the death of the last survivor.
despite her advanced age and frail condition, are enough factual
ART 612. Upon the termination of the usufruct, the thing in bases to consider the usufruct as having been terminated.
usufruct shall be delivered to the owner, without prejudice to
By express provision of Arts 579 and 580, respondents, as
the right of retention pertaining to the usufructuary or his
usufructuary, do not have the right to reimbursement for the
heirs for taxes and extraordinary expenses which should be
improvements they may have introduced on the property. The
reimbursed.
respondents may, however, remove or destroy the improvements
After the delivery has been made, the security or mortgage they may have introduced thereon without damaging the petitioner’s
shall be cancelled. property.
a) In the case of multiple usufructs;
F Easements
b) When there is a period xed based on the number of years that
would elapse before a person would reach a certain age, ART 613. An EASEMENT or servitude is an
encumbrance imposed upon an immovable for the
UNLESS the period was expressly granted only in
bene t of another immovable belonging to a di erent
consideration of the existence of such person, in which case it
owner.
ends at the death of said person;
c) In case the contrary intention CLEARLY appears. The immovable in favor of which the easement is established is
called the dominant estate; that which is subject thereto, the
servient estate.
a) Annulment;
1. Characteristics
b) Rescission;
a) A real right;
c) Mutual withdrawal;
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himself.
b) Imposable only on ANOTHER’s property; The dominant estate cannot be the servient estate at the same
time. One of the characteristics of an easement is that it can be ii) A negative easement is one that prohibits the
c) A real right that may be alienated;
imposed only on the property of another, never on one’s own owner of the servient estate from doing
d) It is a limitation or encumbrance on the servient estate for property. An easement can exist only when the servient and the something which he could lawfully do if the
another’s bene t, the dominant estate dominant estates belong to di erent owners. easement did not exist.
i) It is essential that there be a BENEFIT; e) Right given
ii) It is not essential that the bene t be exercised;
2. Classi cation
i) Partial use;
Resume of Classi cation According to
iii) Not presumed. ii) Getting of speci c material.
a) Party given benefit
e) There is INHERENCE or INSEPARABILITY from the f) Source or origin
estate to which it belongs (Art 617); i) Real or predial
i) Voluntary;
f) It is INDIVISIBLE (Art 618); ii) Personal
ii) Legal;
g) It is INTRANSMISSIBLE; b) Manner of exercise
iii) Mixed.
h) It is PERPETUAL. i) Continuous easements are those the use of
which is or may be incessant, without the Real and Personal Servitudes

Dichoso, Jr. v. Marcos 2011
An easement involves an abnormal restriction on the property
rights of the servient owner and is regarded as a charge or
encumbrance on the servient estate. It is incumbent upon the owner
of the dominant estate to establish by clear and convincing
evidence the presence of all the preconditions before his claim for
easement of right of way may be granted.
Mere convenience for the dominant estate is not what is
required by law as the basis of setting up a compulsory
easement. To be sure, the true standard for the grant of the legal
right is "adequacy."
Borbajo v. Hidden View Homeowners
intervention of any act of man.
ii) Discontinuous easements are those which are
used at intervals and depend upon the acts of man.
c) Whether or not existence is indicated
i) Apparent easements are those which are made
known and are continually kept in view by
external signs that reveal the use and enjoyment
of the same.
ii) Nonapparent easements are those which show
no external indication of their existence.
d) Purpose or nature of limitation
i) A positive easement is one which imposes upon
the owner of the servient estate the obligation of
allowing something to be done or of doing it
ART 614. Servitudes may also be established for the bene t of
a community, or of one or more persons to whom the
encumbered estate does not belong.
Jabonete v. Monteverde
The servitude established was clearly for the bene t alone of the
plainti s. In other words, the right acquired by the original plainti s
was a personal servitude under Article 614, and not a predial
servitude that inures to the bene t of whoever owns the dominant
estate.
Alcantara v. Reta, Jr.
Roble was allowed to construct his house on the land because it

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would facilitate his gathering of tuba. This would be in the nature of a) TITLE or PRESCRIPTION of 10 YEARS if Abellana, Sr. v. CA
a personal easement under Article 614.
i) Continuous AND Apparent. The use of a footpath or road may be apparent but it is a
Public and Private Easements b) TITLE ONLY if discontinuous easement because its use is at intervals and depends
upon the acts of man. It can be exercised only if a man passes or puts
i) Discontinuous and Apparent;
North Negros Sugar v. Hidalgo his feet over somebody else's land. Hence, a right of way is not
ii) Continuous and Non-apparent; acquirable by prescription.
An easement of way voluntarily constituted in favor of a
community. Consequently, the plainti may not establish iii) Discontinuous and Non-apparent.
discriminatory exceptions against any private person.
⭐Bogo-Medellin Milling, Co. v. CA Tañedo v. Bernad
What stamps a public character on a private property, like the road
in question, is not the number of persons who may have an interest The easement of right of way is considered discontinuous The alienation of the dominant and servient estates to
in its use, but the fact that all those who may desire to use it may do because it is exercised only if a person passes or sets foot on di erent persons is not one of the grounds for the
so upon payment of the required indemnity. somebody else's land. Like a road for the passage of vehicles or extinguishment of an easement. On the contrary, use of the
persons, an easement of right of way of railroad tracks is easement is continued by operation of law, speci cally, Art 624.
Continuous and Discontinuous Easements discontinuous. The presence of physical or visual signs only
classi es an easement into apparent or non-apparent. Rights and obligations of the owners of the
Liwag v. Happy Glen Loop Homeowners 2012 2
In this case, the presence of railroad tracks for the passage of dominant and servient estates
In this case, the water facility is an encumbrance on Lot 11 for the petitioner's trains denotes the existence of an apparent but
bene t of the community. It is continuous and apparent, because discontinuous easement of right of way. Dominant Estate Servient Estate
it is used incessantly without human intervention, and because it is
continually kept in view by the overhead water tank, which reveals its When is a party deemed to acquire title over the use of such land? In at Rights
use to the public. least two cases, we held that if:
a) it had subsequently entered into a contractual right of way 1. Exercise the easement and all 1. Retain ownership and
The easement of water facility has been voluntarily established.
with the heirs for the continued use of the land under the necessary rights; (Art 625) possession; (Art 630)
For more than 30 years, the facility was continuously used as the
residents’ sole source of water. Continuous and apparent principles of voluntary easements or 2. To make on the servient estate all 2. To make use of the
easements are acquired either by virtue of a title or by b) it had led a case against the heirs for conferment on it of a necessary works for its use and easement unless
prescription of 10 years. Thus, an easement of water facility has legal easement of right of way under Article 629, preservation, BUT deprived by stipulation
already been acquired through prescription. provided that the
then title over the use of the land is deemed to exist. a. Must be at his own expense;
exercise of easement is
b. Must notify the servient not adversely a ected
owner; and that he contributes
1 Modes of acquiring easements

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Civil Law and Practical Exercises
c. Select convenient time and
manner;
d. Must not alter the easement
or make it more
burdensome. (Art 627)
3. Ask for a mandatory injunction
to prevent impairment or
obstruction;
4. Renounce totally the easement if
he desires exemption from
contribution to expenses (Art
628)
Duties
1. Cannot use the easement except
for the bene t of the immovable
originally contemplated.
2. Cannot exercise the easement in
any other manner than that
previously established. (Art 626)
3. Cannot alter the easement;
4. Cannot make it more
burdensome;
5. For several dominant estates,
each must contribute to
necessary repairs and expenses in
proportion to the BENEFIT
received. (Art 628)
Reviewer for the 2022 Bar
to the expenses; Solid Manila v. Bio Hong Trading
3 Modes of extinguishment
3. To change the location Merger presupposes the existence of a prior servient-dominant
of a very inconvenient ART 631. Easements are extinguished: owner relationship, and the termination of that relation leaves the
easement provided that easement of no use. Unless the owner conveys the property in favor
1) By merger in the same person of the ownership of
an equally convenient of the public—if that is possible—no genuine merger can take
the dominant and servient estates;
substitute is made, place that would terminate a personal easement.
without injury to the 2) By nonuse for ten years;
dominant estate. (Art a) with respect to discontinuous easements, this
629) period shall be computed from the day on which 4 Legal vs. voluntary easements
they ceased to be used; and,
Legal easements are ones imposed by law, and which have, for
b) with respect to continuous easements, from the
their object, either public use or interest of private persons, as
day on which an act contrary to the same took
opposed to voluntary easements that are established by the
place;
agreements of the parties. The di erent legal easements are:
3) When either or both of the estates fall into such
a) easement relating to waters;
condition that the easement cannot be used; xxxx
1. Cannot impair the use b) right of way;
of the easement; (Art 4) By the expiration of the term or the ful llment of
629) the condition, if the easement is temporary or c) party wall;
conditional; d) light and view;
2. Must contribute to the
expenses in case he also 5) By the renunciation of the owner of the dominant e) drainage;
uses the easement; (Art estate;
f) intermediate distances;
628) 6) By the redemption agreed upon between the owners
g) easement against nuisance; and
3. In case of impairment, of the dominant and servient estates.
to restore conditions to h) lateral and subjacent support.
the status quo at his Salimbangon v. Tan 2010 Voluntary Easements
expense plus damages;
When the owner of Lots D and E also became the owner of Lot B, ART 688. Every owner of a tenement or piece of land may
4. To pay for the expenses the easement of right of way on Lot B became extinct by establish thereon the easements which he may deem suitable,
incurred for the change operation of law. and in the manner and form which he may deem best,
of location or form of provided he does not contravene the laws, public policy or
the easement. (Art 629) public order.
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Civil Law and Practical Exercises
ART 689. The owner of a tenement or piece of land, the
a Relating to waters
usufruct of which belongs to another, may impose thereon,
without the consent of the usufructuary, any servitudes which
will not injure the right of usufruct.
ART 690. Whenever the naked ownership of a tenement or
piece of land belongs to one person and the bene cial
ownership to another, no perpetual voluntary easement may
be established thereon without the consent of both owners.
ART 691. In order to impose an easement on an undivided
tenement, or piece of land, the consent of all the co-owners
shall be required.
The consent given by some only, must be held in abeyance
until the last one of all the co-owners shall have expressed his
conformity.
But the consent given by one of the co-owners separately from
the others shall bind the grantor and his successors not to
prevent the exercise of the right granted.
ART 692. The title and, in a proper case, the possession of an
easement acquired by prescription shall determine the rights
of the dominant estate and the obligations of the servient
estate. In default thereof, the easement shall be governed by
such provisions of this Title as are applicable thereto.
ART 693. If the owner of the servient estate should have
bound himself, upon the establishment of the easement, to
bear the cost of the work required for the use and preservation
thereof, he may free himself from this obligation by
renouncing his property to the owner of the dominant estate.
5 Kinds of legal easement
Reviewer
a) Natural drainage of lands; (Art 637)
b) Natural drainage of buildings; (Art 674)
c) Easement on riparian banks for navigation, oatage, shing,
salvage; (Art 638)
d) Easement of a dam; (Art 639, 647)
e) Easement for drawing water or for watering animals; (Art
640-641)
f) Aqueduct; (Art 643-646)
g) Construction of a stop lock or sluice gate. (Art 647)
ART 637. Lower estates are obliged to receive the waters which
naturally and without the intervention of man descend from
the higher estates, as well as the stones or earth which they
carry with them.
The owner of the lower estate cannot construct works
which will impede this easement; neither can the owner
Requirement of Easement for drawing water or for watering
of the higher estate make works which will increase the
animals
burden.
ART 638. The banks of rivers and streams, even in case they
are of private ownership, are subject throughout their entire
length and within a zone of three meters along their
margins, to the easement of public use in the general interest
of navigation, oatage, shing and salvage.
Estates adjoining the banks of navigable or oatable rivers are,
furthermore, subject to the easement of towpath for the
exclusive service of river navigation and oatage.
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If it be necessary for such purpose to occupy lands of private
ownership, the proper indemnity shall rst be paid.
ART 639. Whenever for the diversion or taking of water from
a river or brook, or for the use of any other continuous or
discontinuous stream, it should be necessary to build a dam,
and the person who is to construct it is not the owner of the
banks, or lands which must support it, he may establish the
easement of abutment of a dam, after payment of the proper
indemnity.
ART 640. Compulsory easements for drawing water or for
watering animals can be imposed only for reasons of public
use in favor of a town or village, after payment of the proper
indemnity.
ART 641. Easements for drawing water and for watering
animals carry with them the obligation of the owners of the
servient estates to allow passage to persons and animals to the
place where such easements are to be used, and the indemnity
shall include this service.
a) Must be for public use;
b) Must be in favor of a town or village;
c) Right must be sought by the town or village;
d) There must be payment of proper indemnity;
e) The right of way must have a maximum width of 10 meters,
which cannot be altered although the direction of the path
may be changed.
ART 642. Any person who may wish to use upon his own
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estate any water of which he can dispose shall have the right to
make it ow through the intervening estates, with the
obligation to indemnify their owners, as well as the owners of
the lower estates upon which the waters may lter or descend.
ART 643. One desiring to make use of the right granted in the
preceding article is obliged:
1) To prove that he can dispose of the water and that it is
su cient for the use for which it is intended;
2) To show that the proposed right of way is the most
convenient and the least onerous to third persons;
3) To indemnify the owner of the servient estate in the
manner determined by the laws and regulations.
ART 644. The easement of aqueduct for private interest
cannot be imposed on buildings, courtyards, annexes, or
outhouses, or on orchards or gardens already existing.
ART 645. The easement of aqueduct does not prevent the
owner of the servient estate from closing or fencing it, or from
building over the aqueduct in such manner as not to cause the
Requisites to Construct a Stop Lock or Sluice Gate
latter any damage, or render necessary repairs and cleanings
impossible.
ART 646. For legal purposes, the easement of aqueduct shall
be considered as continuous and apparent, even though the
ow of the water may not be continuous, or its use depends
upon the needs of the dominant estate, or upon a schedule of
alternate days or hours.
Requisites to Acquire Easement of AQUEDUCT
a) Indemnity must be paid;
b) If for private interests, the easement cannot be imposed
Reviewer
on EXISTING buildings, courtyards, annexes,
out-houses, orchards or gardens;
c) There must be PROOF:
i) That he can dispose of the water;
ii) That the water is SUFFICIENT for the use for
which it is intended;
iii) That the proposed course is the most convenient
and the least onerous to third persons and the
servient estate;
iv) That proper administrative permission be
obtained.
ART 647. One who for the purpose of irrigating or improving
his estate, has to construct a stop lock or sluice gate in the bed
of the stream from which the water is to be taken, may
demand that the owners of the banks permit its construction,
after payment of damages, including those caused by the new
easement to such owners and to the other irrigators.
a) Purpose must be for irrigation or improvement;
b) Construction must be on the estate of another;
c) Damages must be paid;
d) Third persons should not be prejudiced.
ART 648. The establishment, extent, form and conditions of
the servitudes of waters, to which this section refers, shall be
governed by the special laws relating thereto insofar as no
provision therefor is made in this Code.
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for the 2022 Bar
b Right of way
Villanueva v. Velasco
The essential requisites for an easement to be compulsory are:
1) the dominant estate is surrounded by other immovables and
has no adequate outlet to a public highway;
2) proper indemnity has been paid;
3) the isolation was not due to acts of the proprietor of the
dominant estate;
4) the right of way claimed is at a point least prejudicial to
the servient estate; and
5) to the extent consistent with the foregoing rule, where the
distance from the dominant estate to a public highway may
be the shortest.
Ramos, Sr. v. Gatchalian Realty, Inc.
Mere convenience for the dominant estate is not enough to
serve as its basis. To justify the imposition of this servitude, there
must be a real, not a ctitious or arti cial, necessity for it.
Quimen v. CA
If the two circumstances do not concur in a single tenement, the way
where damage will be least shall be used even if not the
shortest route. This is so because least prejudice prevails over
shortest distance.
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Floro v. Llenado
The use of Road Lots 4 and 5 by the Llenados during the month of
March was by mere tolerance of Floro pending the negotiation of
the terms and conditions of the right of way. Although such use was
in anticipation of a voluntary easement of right of way, no such
contract was validly entered into by reason of the failure of the
parties to agree on its terms and conditions. Thus, Llenados cannot
claim entitlement to a right of way through the Floro Park
Subdivision on the basis of a voluntary easement.
Valdez v. Tabisula
A document stipulating a voluntary easement must be recorded in
the Registry of Property in order not to prejudice third parties.
Here, petitioners and their family are also the owners of two
properties adjoining the subject property which have access to two
public roads or highways. Since petitioners then have more than
adequate passage to two public roads, they have no right to demand
an easement on the "western side of respondents' lot."
1) Right to Compensation of owner of servient estate
a) If permanent = Value of land + Damages;
Upon extinction, return the indemnity without interest.
b) If temporary = Damages only.
2) Width of an Easement of Right of Way
Encarnacion v. CA
Reviewer
Whether or not petitioner is entitled to a widening of an already
existing easement of right-of-way.
While there is a dried river bed less than 100 meters from the
dominant tenement, that access is grossly inadequate. Generally, the
right of way may be demanded:
1) when there absolutely no access to a public highway, and
2) when, even if there is one, it is di cult or dangerous to
use or is grossly insu cient.
Here, during the rainy season, the river bed is impassable due to the
ood. Thus, it can only be used at certain times of the year.
With the inherent disadvantages of the river bed which make passage
di cult, if not impossible, it is as if there were no outlet at all.
The law decrees that petitioner must indemnify the owners of the
servient estate. Since the easement to be established in favor of
petitioner is of a continuous and permanent nature, the indemnity
shall consist of the value of the land occupied and the amount of
the damage caused to the servient estate pursuant to Article 649.
3) Payment of Indemnity
Woodridge School v. reiterated De Guzman v.
2015
ARB Construction in Filinvest Dev’t
Since the intention of petitioners is to establish a permanent
passage, the second paragraph of Article 649 of the Civil Code
particularly applies. The Civil Code categorically provides for the
measure by which the proper indemnity may be computed: value of
the land occupied plus the amount of the damage caused to the
servient estate.
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c Light and view
⭐Sps Garcia v. Santos 2019 Caguioa, J
According to Article 621, in order to acquire easements by
prescription in positive easements, the prescriptive period shall
commence from the day on which the owner of the dominant estate,
or the person who may have made use of the easement, commenced
to exercise it upon the servient estate.
With respect to negative easements — from the day on which the
owner of the dominant estate forbade, by an instrument
acknowledged before a notary public, the owner of the servient
estate, from executing an act which would be lawful without the
easement.
How then is an easement of light and view classified?
As a general rule, an easement of light and view is a positive one if
the window or opening is situated in a party wall, while it is a
negative one if the window or opening is thru one's own wall, i.e.,
thru a wall of the dominant estate. However, even if the window is on
one's own wall, still the easement would be positive if the window is
on a balcony or projection extending over into the adjoining land.
Aside from prescription, easements may likewise be acquired
through title. The term "title" refers to a juridical act or law
su cient to create the encumbrance.
The mode of acquiring an easement under Article 624 is a "legal
presumption or apparent sign." Article 624 nds application in
situations wherein two or more estates were previously owned by a
singular owner, or even a single estate but with two or more
portions being owned by a singular owner. According to Article 624,
there arises a title to an easement of light and view, even in the
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absence of any formal act undertaken by the owner of the
dominant estate, if this apparent visible sign, such as the
existence of a door and windows, continues to remain and
subsist, unless, at the time the ownership of the two estates is
divided,
1) the contrary should be provided in the title of conveyance of
either of them, or
2) the sign aforesaid should be removed before the execution of
the deed.
The existence of an easement of light and view under Article 624 is
established as long as
1) there exists an apparent sign of servitude between two
estates;
2) the sign of the easement must be established by the owner
of both tenements;
3) either or both of the estates are alienated by the owner; and
4) at the time of the alienation nothing is stated in the
document of alienation contrary to the easement nor is the
sign of the easement removed before the execution of the
document.
Article 673 is the exception to the general rule. Therefore,
considering that the Sps. Garcia have acquired by title an easement of
light and view in accordance with Article 624, the Sps. Santos
should necessarily demolish or renovate portions of their
residential building so that the three-meter distance rule as
mandated under Article 673 is observed.
Reviewer
G Nuisance
ART 694. A nuisance is any act, omission, establishment,
business, condition of property, or anything else which:
1) Injures or endangers the health or safety of others;
or
2) Annoys or o ends the senses; or
3) Shocks, de es or disregards decency or morality; or
4) Obstructs or interferes with the free passage of any
public highway or street, or any body of water; or
5) Hinders or impairs the use of property.
Rana v. Wong 2014
Article 695 classi es nuisances with respect to the object or
objects that they a ect. In this regard, a nuisance may either be:
a) a public nuisance, or one which "a ects a community or
neighborhood or any considerable number of persons,
although the extent of the annoyance, danger or damage
upon individuals may be unequal"; or
b) a private nuisance, or one "that is not included in the
foregoing de nition", or, as case law puts it, one which
"violates only private rights and produces damages to but
one or a few persons".
Nuisance per se and per accidens
Jurisprudence further classi es nuisances in relation to their legal
susceptibility to summary abatement.
a) a nuisance per se, or one which "a ects the immediate
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safety of persons and property and may be summarily
abated under the unde ned law of necessity"; or
b) a nuisance per accidens, or that which "depends upon
certain conditions and circumstances, and its existence
being a question of fact, it cannot be abated without due
hearing thereon in a tribunal authorized to decide whether
such a thing does in law constitute a nuisance."
There is a need for judicial intervention when the
nuisance is NOT a nuisance per se.
Aside from the remedy of summary abatement, a private person
whose property right was invaded or unreasonably interfered with by
the act, omission, establishment, business or condition of the
property of another may le a civil action to recover personal
damages. To note, the remedies of abatement and damages are
cumulative; hence, BOTH may be demanded.
1. Liabilities
ART 696. Every successive owner or possessor of property
who fails or refuses to abate a nuisance in that property started
by a former owner or possessor is liable therefor in the same
manner as the one who created it.
2. Attractive Nuisance
Hidalgo Enterprises v. Balandan
The Doctrine of Attractive Nuisance states that one who
maintains on his premises dangerous instrumentalities or appliances
of a character likely to attract children in 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
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thereby, even if the child is technically a trespasser in the premises.
The attractive nuisance doctrine generally is NOT applicable to
bodies of water, arti cial as well as natural, in the absence of
some unusual condition or arti cial feature other than the mere
water and its location.
3. No prescription
ART 698. Lapse of time cannot legalize any nuisance, whether
public or private.
4. Extrajudicial abatement
ART 702. The district health officer shall determine
whether or not abatement, without judicial proceedings, is the
best remedy against a public nuisance.
Estate of Francisco v. CA
Violation of a municipal ordinance neither empowers the Municipal
Mayor to avail of extra-judicial remedies. On the contrary, the LGC
imposes upon him the duty "to cause to be instituted judicial
proceedings in connection with the violation of ordinances."
Respondents can not seek cover under the general welfare clause
authorizing the abatement of nuisances without judicial
proceedings. That tenet applies to a nuisance per se. The storage of
copra in the quonset building is a legitimate business. It is not per se
a nuisance warranting its summary abatement without judicial
intervention.
Parayno v. Jovellanos
Reviewer
A gas station is NOT a nuisance per se or one a ecting the
immediate safety of persons and property, hence, it cannot be closed
down or transferred summarily to another location.
Lucena Grand Central Terminal v. Jac Liner
Neither are terminals public nuisances as petitioner argues. For
their operation is a legitimate business which, by itself, cannot be
said to be injurious to the rights of property, health, or comfort of
the community.
Perez v. Sps Madrona and Pante 2012
For injunction to issue, two requisites must concur: first, there
must be a right to be protected and second, the acts against which
the injunction is to be directed are violative of said right. Here, there
is a right to be protected, that is, respondents’ right over their
concrete fence which cannot be removed without due process; and
the act, the summary demolition of the concrete fence, against which
the injunction is directed, would violate said right.
Telmo v. Bustamante
Nowhere was it shown that the concrete posts put up by
respondent in what he believed was his and his co-owners' property
were ever declared dangerous or ruinous, such that they can be
summarily demolished by petitioner. The concrete posts put up by
respondent on the property are not properly covered by the
de nition of the word "building" nor is it embraced in the
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corresponding interpretation of the word "structure."
Cruz v. Pandacan Hiker’s Club 2016
A basketball ring, by itself, poses no immediate harm or danger to
anyone but is merely an object of recreation. Also, the chief executive
of the local government, like the Punong Barangay, is not authorized
as the o cial who can determine the propriety of a summary
abatement.
Aquino v. Municipality of Malay 2014
In establishing a no build zone through local legislation, the LGU
e ectively made a determination that constructions therein, without
rst securing exemptions from the local council, qualify as
nuisances for they pose a threat to public safety.
Had it not been constructed in the no build zone, Boracay West
Cove could have secured the necessary permits without issue. As
such, petitioner is correct that the hotel is not a nuisance per se, but is
still a nuisance per accidens.
Pertinent herein is Sec. 444 (b)(3)(vi) of the LGC, which empowered
the mayor to order the closure and removal of illegally
constructed establishments for failing to secure the necessary
permits.
5. Special injury to individual
ART 703. A private person may le an action on account of a
public nuisance, if it is specially injurious to himself.
ART 704. Any private person may abate a public nuisance
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which is specially injurious to him by removing, or if

necessary, by destroying the thing which constitutes the same,
without committing a breach of the peace, or doing
unnecessary injury. But it is necessary:
1) That demand be rst 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 o cer and executed with the assistance of the
local police; and
4) That the value of the destruction does not exceed
P3K.
6. Right of individual to abate a public nuisance
ART 699. 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 700. The district health o cer shall take care that one or
all of the remedies against a public nuisance are availed of.
ART 701. 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.
7. Right to damages
ART 697. The abatement of a nuisance does not preclude the
right of any person injured to recover damages for its past
existence.
4. With intent to appropriate;
8. Who may sue on private nuisance
ART 705. The remedies against a private nuisance are: 5. Subject to compliance with speci c conditions and
prohibitions laid down by law.
1) A civil action; or
2 Donation
2) Abatement, without judicial proceedings.
ART 707. A private person or a public o cial extrajudicially a Nature
abating a nuisance shall be liable for damages:
1. De nition, Concept of, Elements
1) If he causes unnecessary injury; or
ART 725. Donation is an act of liberality whereby a person
2) If an alleged nuisance is later declared by the courts to
disposes gratuitously of a thing or right in favor of another,
be not a real nuisance.
who accepts it.
H Modes of Acquiring Ownership ART 726. Other instances where there is donation
a) when a person gives to another a thing or right on account
a) Occupation;
of the latter's merits or of the services rendered by him
b) Intellectual creation; to the donor, provided they do not constitute a
c) Law; demandable debt, or
d) Donation; b) when the gift imposes upon the donee a burden which is
less than the value of the thing given.
e) Succession;
ART 727. Illegal or impossible conditions in simple and
f) Tradition, as a consequence of certain contracts; and
remuneratory donations shall be considered as not imposed.
g) Prescription.
2. Requisites of Donation
1 Occupation 1) Consent, subject matter, cause;
2) Necessary form;
Requisites
3) Consent or acceptance by donee during donor’s lifetime;
1. Seizure or apprehension of property;
4) Irrevocability;
2. Property is corporeal personal property;
5) Intent to bene t the donee;
3. Property is without an owner;

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6) Resultant decrease in the patrimony of donor.
3. Classi cation of Donation
i. Simple
ii. Remuneratory
iii. Modal
iv. Onerous
ART 733. Donations with an onerous cause shall be governed
by the rules on contracts and remuneratory donations by
the provisions of the present Title as regards that portion
which exceeds the value of the burden imposed.
Roman Catholic Archbishop of Manila v. CA
The deed of donation involved herein expressly provides for
automatic reversion of the property donated in case of violation of
the condition therein, hence a judicial declaration revoking the same is
not necessary. Thus, the rules on contract and the general rules on
prescription should apply, and not Article 764.
The cause of action of herein respondents has not yet prescribed since
an action to enforce a written contract prescribes in ten (10) years.
Donation, as a mode of acquiring ownership, results in an e ective
transfer of title over the property from the donor to the donee. A
prohibition against alienation, in order to be valid, must not be
perpetual or for an unreasonable period of time. Such condition
shall be considered as not imposed.
Lagazo v. CA
Reviewer
A simple or pure donation is one whose cause is pure liberality,
while an onerous donation is one which is subject to burdens,
charges or future services equal to or more in value than the thing
donated. Here, the donation was simple, not onerous. Even
conceding that petitioner’s full payment of the purchase price of the
lot might have been a burden to him, such payment was not however
imposed by the donor as a condition for the donation. The
payments made by petitioner were merely his voluntary acts.
4. Perfection of Donation
ART 734. The donation is perfected from the moment the
donor knows of the acceptance by the donee.
Pajarillo v. IAC
The donation became e ective upon acceptance by Salud except
that, in obedience to her mother's request, she chose not to register
the land in the meantime and to allow her mother to enjoy its fruits.
What was deferred was not its e ectivity but only its
enjoyment by Salud. Registration was not necessary to make the
donation a binding commitment insofar as the donors and the donee
were concerned.
Dolar v. Barangay Lublub
Inter Vivos and Mortis Causa
Petitioner is hardly the proper party to challenge the validity of the
donation — which is presumed to be valid — on the ground he
presently invokes. The honor belongs to the Sanggunian. The
Sanggunian, by availing themselves of such bene ts for more than
two decades now, e ectively rati ed Militar's acceptance of the
donation.
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Where, however, the donee denies, as here, the rescission or
challenges the propriety thereof, then only the nal award of
the court can, to borrow from UP v. de los Angeles, "conclusively
settle whether the resolution is proper or not."
In the case at bench, respondent barangay denied or challenged the
purported revocation of the donation. Owing to the prescriptive
component of Article 764, an action to revoke prescribes after four
(4) years from non-compliance by the donee with any of the
conditions set forth in the deed of donation. Seventeen (17) years is
too far removed from the 4-year prescriptive period. Thus,
petitioner's action to revoke is time-barred.
5. Making and Acceptance of Donation
Quilala v. Alcantara
Under Article 749 of the Civil Code, the donation of an
immovable must be made in a public instrument in order to be
valid, specifying therein the property donated and the value of the
charges which the donee must satisfy.
The speci cation of the location of the signature is merely
directory. The instrument should be treated in its entirety. The
fact that the donee was not mentioned by the notary public in
the acknowledgment is of no moment.
a) Inter vivos
i) Takes e ect during lifetime of donor;
ii) Must follow formalities of donations;
iii) Cannot be revoked except for lawful grounds;
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iv) In case of impairment of legitime, donations inter
vivos are preferred to donations mortis causa;
v) The right of disposition is completely transferred
to the donee;
vi) Acceptance of donee must be DURING the
lifetime of the donor.
b) Mortis causa
i) Takes e ect after death of donor;
ii) Must follow the formalities of wills;
iii) Revocable while donor is alive;
iv) In case of impairment of legitime, donations
mortis causa are reduced ahead of inter vivos;
v) Right of disposition not transferred to donee
while donor is alive;
vi) Acceptance must be AFTER the death of the
donor.
Austria-Magat v. CA
In the case at bar, the decisive proof that the deed is a donation
inter vivos is in the provision that: Ibinibigay ko at ipinagkakaloob
ng ganap at hindi mababawi sa naulit na apat na anak ko at sa
kanilang mga tagapagmana, ang aking lupang residential o tirahan
sampu ng aking bahay nakatirik doon xxx. In Cuevas v. Cuevas,
when the deed of donation provides that the donor will not dispose
or take away the property donated (thus making the donation
irrevocable), he in e ect is making a donation inter vivos.
In Gestopa v. CA, the prohibition to alienate does not
Reviewer
necessarily defeat the inter vivos character of the donation.
Another indication in the deed of donation that the donation is
inter vivos is the acceptance clause therein of the donees. We have
ruled that an acceptance clause is a mark that the donation is inter
vivos.
Maglasang v. Heirs of Cabatingan
The herein subject deeds expressly provide that the donation shall be
rescinded in case petitioners predecease Conchita. As stated in Reyes
v. Mosqueda, one of the decisive characteristics of a donation
mortis causa is that the transfer should be considered void if
the donor should survive the donee.
Sps Gestopa v. CA
Whether the donor intended to transfer the ownership over the
properties upon the execution of the deed. YES.
First, the granting clause shows that Diego donated the properties
out of love and a ection for the donee. This is a mark of a donation
inter vivos.
Second, the reservation of lifetime usufruct indicates that the donor
intended to transfer the naked ownership over the properties.
Third, the donor reserved su cient properties for his maintenance
in accordance with his standing in society, indicating that the donor
intended to part with the six parcels of land.
Lastly, the donee accepted the donation.
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b Persons who may give or receive a donation
ART 735. All persons who may contract and dispose of their
property may make a donation.
ART 736. Guardians and trustees cannot donate the property
entrusted to them.
Arcaba v. Tabancura
Respondents having proven by a preponderance of evidence that
Cirila and Francisco lived together as husband and wife without a
valid marriage, the inescapable conclusion is that the donation made
by Francisco in favor of Cirila is VOID under Art 87 of the FC.
c E ects and limitations of donation
ART 750. The donation may comprehend all the present
property of the donor, or part thereof, provided he reserves,
in full ownership or in usufruct, su cient means for the
support of himself, and of all relatives who, at the time of the
acceptance of the donation, are by law entitled to be
supported by the donor.
Without such reservation, the donation shall be reduced
in petition of any person a ected.
ART 751. Donations cannot comprehend future property.
ART 753. When a donation is made to several persons jointly,
it is understood to be in equal shares, and there shall be NO
right of accretion among them, unless the donor has
otherwise provided.
The preceding paragraph shall not be applicable to donations
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made to the husband and wife jointly, between whom there
shall be a right of accretion, if the contrary has not been
provided by the donor.
Instances when accretion is proper
a) In case of predecease, the donee dying ahead of donor before
perfection;
b) In case of incapacity of donee;
c) In case of refusal or repudiation of donee.
In all three cases, there ordinarily would not be any perfection of the
donation.
When WARRANTY exists
a) If donor is in bad faith;
b) If donation is ONEROUS;
c) If warranty is expressly made;
d) If donation is PROPTER NUPTIAS unless the contrary is
stipulated.
ART 756. The ownership of property may also be donated to
one person and the usufruct to another or others, provided all
the donees are living at the time of the donation.
ART 757. Reversion may be validly established in favor of
only the donor for any case and circumstances, but not in
favor of other persons unless they are all living at the time of
the donation.
Rules on Stipulation that Donee Pays Debts of Donor
a) Pay only for PRIOR debts;
b) Pay only for debts up to the value of the property donated.
Reviewer
ART 759. There being no stipulation regarding the payment
of debts, the donee shall be responsible therefor only when the
donation has been made in fraud of creditors.
The donation is always presumed to be in fraud of
creditors, when at the time thereof the donor did not
reserve su cient property to pay his debts prior to the
donation.
d Revocation and reduction
Prescriptive Period to Revoke Donation
ART 765. The donation may also be revoked at the instance of
the donor, by reason of ingratitude in the following cases:
1) If the donee should commit some o ense against
the person, the honor or the property of the
donor, or of his wife or children under his parental
authority;
2) If the donee imputes to the donor any criminal
o ense, or any act involving moral turpitude, even
though he should prove it, unless the crime or the act
has been committed against the donee himself, his
wife or children under his authority;
3) If he unduly refuses him support when the donee
is legally or morally bound to give support to the
donor.
ART 773. If, there being two or more donations, the
disposable portion is not su cient to cover all of them, those
of the more recent date shall be suppressed or reduced
with regard to the excess.
De Luna v. Abrigo
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Judicial intervention is necessary not for purposes of obtaining a
judicial declaration rescinding a contract, but in order to determine
whether or not the rescission was proper.
As provided in the donation executed on April 9, 1971, compliance
with the terms and conditions of the contract of donation, shall be
made within ve (5) years from its execution. The complaint which
was led on September 23, 1980 was then well within the ten (10)
year prescriptive period to enforce a written contract.
Imperial v. CA
Ino ciousness as a cause of action may arise only upon the
death of the donor, as the value of the donation will then be
contrasted with the net value of the estate of the donor-deceased.
Under Article 1144 of the Civil Code, actions upon an obligation
created by law must be brought within ten years from the time the
right of action accrues. From when shall the ten-year period be
reckoned? The case of Mateo v. Lagua, recognized that the cause of
action to enforce a legitime accrues upon the death of the
donor-decedent.
Santos v. Alana
Gregorio could not donate more than he may give by will. Clearly,
by donating the entire lot to petitioner, we agree with both lower
courts that Gregorio's donation is ino cious as it deprives
respondent of her legitime.
3 Prescription
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ART 1131. For the purposes of prescription, just title must b. This also refers to Arts 1139 - 1155 as to the Prescription of
a General provisions
be proved; it is never presumed. Actions or the Statute of Limitations.
ART 1106. By prescription, one acquires ownership and other b) EXTRAORDINARY Period of Prescription
real rights through the lapse of time in the manner and under
ART 1137. Ownership and other real rights over immovables Movable Immovable
the conditions laid down by law. (ACQUISITIVE)
also prescribe through uninterrupted adverse possession
In the same way, rights and conditions are lost by prescription. Ordinary 4 years 10 years
thereof for thirty years, without need of title or of good faith.
(EXTINCTIVE)
Requisites of Acquisitive Prescription Extraordinary 8 years 30 years
b Prescription of ownership and other real rights a) Capacity of acquirer to acquire by prescription;
b) Capacity of loser to lose by prescription;
c Prescription of actions
1. Acquisitive
c) Object must be susceptible of prescription; 1. To recover movables
Acquisitive prescription is a mode of acquiring ownership by a
possessor through the requisite lapse of time. In order to ripen into d) Lapse of required period of time; ART 1140. Actions to recover movables shall prescribe 8 years
ownership, possession must be from the time the possession thereof is lost, unless the
e) Possession must be
a) open when it is patent, visible, apparent, notorious and not possessor has acquired the ownership by prescription for a less
i) In concept of owner; period xxx.
clandestine;
ii) Public; 2. To recover immovables
b) continuous when uninterrupted, unbroken and not
intermittent or occasional; iii) Peaceful; and ART 1141. Real actions over immovables prescribe after 30
c) exclusive when the adverse possessor can show exclusive iv) Continuous or uninterrupted. years.
dominion over the land and an appropriation of it to his own f) For ordinary prescription 3. Other actions
use and bene t; and
i) Good faith;
PERIOD ACTION
d) notorious when it is so conspicuous that it is generally ii) Just title.
known and talked of by the public or the people in the 10 YEARS a) Mortgage action;
neighborhood. 2. Extinctive b) Upon a written contract;
Two Types of Acquisitive Prescription ART 1139. Actions prescribe by the mere lapse of time xed by c) Upon an obligation created by law;
law. d) Upon a judgment.
a) ORDINARY
a. Another name for extinctive prescription is litigation of 6 YEARS a) Upon an oral contract;
Ordinary acquisitive prescription requires possession of things
action, liberatory prescription. b) Upon a quasi-contract.
in good faith and with just title for the time xed by law.

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4 YEARS a) Upon an injury to the rights of the plainti ;
b) Upon a quasi-delict;
c) Annulment of marriage based on non-age,
fraud, force, or intimidation;
d) Revocation or reduction of donations;
e) Rescission of contracts;
f) Annulment of contracts.
1 YEAR a) For forcible entry and detainer;
b) For defamation;
c) Legal separation;
d) To impugn the legitimacy of a child;
e) Revocation of donation on the ground of
ingratitude;
f) Rescission or for damages for sale of immovable
encumbered with any non-apparent burden.
6 MONTHS Reduction of the price or rescission of a sale of real
estate if the vendor is unable to deliver on demand
all that is stated in the contract, or included within
the boundaries;
5 YEARS All other actions whose periods are not xed in this
Code or in other laws must be brought within ve
years from the time the right of action accrues.
I Quieting of Title
What is cloud on title? Is a semblance of title, either legal or
equitable, or a claim of a right in real property, appearing in some
legal form but which is, in fact, invalid or unfounded, or which
would be inequitable to enforce.
Reviewer
Requisites
a. There is a Price, Record, Instrument, Claim, or
Encumbrance (P.R.I.C.E.) which is apparently e ective or
valid;
b. Such is in fact invalid, ine ective, voidable or unenforceable,
or has been extinguished or terminated, or has been barred by
extinctive prescription (Art 478);
c. Such may be prejudicial to said title.
Nature of action to quiet title
1. An action for quieting of title is imprescriptible until the
claimant is ousted of his possession.
2. Suits to quiet title are characterized as proceedings quasi in
rem. In an action quasi in rem, an individual is named as
defendant. However, unlike suits in rem, a quasi in rem
judgment is conclusive only between the parties.
1. Requisites
a. The plainti or complainant has a legal or an equitable title
to or interest in the real property subject of the action;
b. The defendant claims an interest therein adverse to the
plainti ; and
c. The deed, claim, encumbrance or proceeding claimed to be
casting cloud on his title must be shown to be in fact invalid
or inoperative despite its prima facie appearance of validity or
legal e cacy.
Heirs of Prodon v. Heirs of Alvarez 2013
In an action for quieting of title based on the inexistence of a deed
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of sale with right to repurchase that purportedly cast a cloud on the
title of a property, the Best Evidence Rule does not apply, and the
defendant is not precluded from presenting evidence other than the
original document.
It is not denied that this action does not involve the terms or
contents of the deed of sale with right to repurchase. The principal
issue raised by the respondents as the plainti s, which Prodon
challenged head on, was whether or not the deed of sale with right to
repurchase, duly executed by the late Alvarez, Sr., had really
existed.
2. Distinctions between quieting title and
removing/preventing a cloud
Gallar v. Husain
This action is not for speci c performance; all it seeks is to quiet title,
to remove the cloud cast on appellees’ ownership as a result of
appellant’s refusal to recognize the sale made by their predecessor.
And, as plainti -appellee is in possession of the land, the
action is imprescriptible.
An action for Quieting of Title is NOT a
remedy to settle a boundary dispute
Vda. de Aviles v. CA
Is the special civil action of Quieting of Title under Rule 64 the proper
remedy for settling a boundary dispute?
NO. The construction of the bamboo fence enclosing the disputed
property and the moving of earthen dikes are NOT the "clouds" or
"doubts" which can be removed in an action for quieting of title.
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Such determination of boundaries is appropriate in adversarial
proceedings where possession or ownership may properly be
considered and where evidence aliunde, other than the "instrument,
record, claim, encumbrance or proceeding" itself, may be
introduced. An action for forcible entry, whenever warranted by
the period prescribed in Rule 70, or for recovery of possession de
facto, also within the prescribed period, may be availed of.
3. Prescription/non-prescription of action
a. Plainti in possession — imprescriptible.
b. Plainti not in possession — 10 or 30 years.
May also be barred by laches.
Republic v. Mangotara 2010
Since the ordinary acquisitive prescription period of 10 years
does not apply to LANDTRADE, then the Court turns its
attention to the extraordinary acquisitive prescription period of 30
years set by Article 1137.
LANDTRADE adversely possessed the subject properties no earlier
than 1996, when it bought the same from Teo lo, and Civil Case
No. 4452 was already instituted two years later in 1998.
LANDTRADE cannot tack its adverse possession of the two parcels
of land to that of Teo lo considering that there is no proof that the
latter, who is already residing in the U.S.A., adversely possessed the
properties.
J Actions to Recover Property
ART 433. Actual possession under claim of ownership raises
Reviewer
disputable presumption of ownership. The true owner must
resort to judicial process for the recovery of the property.
Requisites in an Action to Recover
ART 434. In an action to recover, the property must be
identi ed, and the plainti must rely on the strength of his
title and not on the weakness of the defendant's claim.
1 Accion interdictal
Accion interdictal comprises two distinct causes of action, namely,
forcible entry (detentacion) and unlawful detainer (desahuico).
In forcible entry, one is deprived of physical possession of
real property by means of force, intimidation, strategy, threats,
or stealth whereas in unlawful detainer, one illegally
withholds possession after the expiration or termination of his
right to hold possession under any contract, express or
implied.
Estate of Manantan v. Somera
The Complaint does not allege facts showing compliance with the
prescribed one year period to le an action for unlawful detainer. It
does not state the material dates that would have established that it
was led within one year from the date of Manantan's last
demand upon respondent to vacate the disputed portion of land.
Such allegations are jurisdictional and crucial, because if the
complaint was led beyond the prescribed one year period, then it
cannot properly qualify as an action for unlawful detainer over
which the MTCC can exercise jurisdiction. It may be an accion
publiciana or accion reivindicatoria.
Here, the respondent was already in possession of the disputed
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portion at the time Manantan bought the subject property from the
Bayot family, and it was only after the conduct of a relocation
survey, which supposedly showed that respondent was encroaching
on the subject property, did Manantan begin asserting her claim of
ownership over the portion occupied and used by respondent.
Clearly, respondent's possession of the disputed portion was
not pursuant to any contract, express or implied, with
Manantan, and, resultantly, respondent's right of possession over
the disputed portion is not subject to expiration or termination.
Casilang v. Casilang-Dizon 2013
Inferior courts are empowered to rule on the question of ownership
raised by the defendant in an ejectment suit, but only to resolve the
issue of possession; its determination is not conclusive on the issue of
ownership.
Quijano v. Amante 2014
Where the plainti does not prove her alleged tolerance of the
defendant's occupation, the possession is deemed illegal from the
beginning. Hence, the action for unlawful detainer is an
improper remedy. But the action cannot be considered as one for
forcible entry without any allegation in the complaint that the entry
of the defendant was by means of force, intimidation, threats,
strategy or stealth.
Suarez v. Emboy 2014
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As a general rule, a pending civil action involving ownership of the
same property does not justify the suspension of ejectment
proceedings. Only in rare instances is suspension allowed to await the
outcome of the pending civil action. As an exception to the general
rule, the respondents’ petition for nulli cation of partition can abate
Carmencita’s suit for unlawful detainer.
Indisputably, the execution of the MCTC Decision would have
resulted in the demolition of the house subject of the ejectment suit;
thus, by parity of reasoning, considerations of equity require the
suspension of the ejectment proceedings. Needlessly, the litigants as
well as the courts will be wasting much time and e ort by proceeding
at a stage wherein the outcome is at best temporary, but the
result of enforcement is permanent, unjust and probably
irreparable.
Javelosa v. Tapus 2018
The petitioner failed to adduce evidence to establish that the
respondents' occupation of the subject property was actually e ected
through her tolerance or permission. Unfortunately, the petitioner
failed to prove how and when the respondents entered the subject
lot, as well as how and when the permission to occupy was
purportedly given. The absence of such essential details is especially
troubling considering that the respondents have been occupying the
subject property for more than 70 years.
2 Accion publiciana
Accion publiciana is the plenary action to recover the right
of possession, which should be brought before the proper RTC
when dispossession has lasted for more than one year. It is an
Reviewer for the 2022 Bar
ordinary civil proceeding to determine the better right of
possession of a piece of land claiming to be the owner thereof
possession of realty independently of title. In other words, if at the
may wait until his possession is disturbed or his title is
time of the ling of the complaint, more than one year has lapsed
attacked before taking steps to vindicate his right, the reason for
since defendant unlawfully withheld possession from plainti , the
the rule being, that his undisturbed possession gives him a
action will not be for illegal detainer, but an accion publiciana.
continuing right to seek the aid of a court of equity to ascertain
and determine the nature of the adverse claim of a third party and its
Gabriel v. Crisologo 2014
e ect on his own title, which right can be claimed only by one who is
The objective of the plainti s in accion publiciana is to recover in possession.
possession ONLY, not ownership. When parties, however, raise
the issue of ownership, the court may pass upon the issue to
determine who between the parties has the right to possess the II Credit Transactions
property. This adjudication, nonetheless, is not a final and
binding determination of the issue of ownership. Personal Property Securities (RA 11057)
Petitioners, as private individuals, are not the proper parties to Real Estate Mortgage
question the status of the respondent’s registered titles within the
Baguio Townsite Reservation. It is the SolGen who is the proper
Personal Property Securities
party.
A Personal Property Security Act
Implementing Rules and Regulations of RA No 11057
3 Accion reivindicatoria
a. De nition and scope
Accion reivindicatoria, meanwhile, is an action to recover
Security interest — a property right in collateral that secures
ownership, as well as possession, which should also be brought
payment or other performance of an obligation, regardless of
before the proper RTC in an ordinary civil proceeding.
whether the parties have denominated it as a security interest, and
Iglesia ni Cristo v. Ponferrada regardless of the type of asset, the status of the grantor or secured
creditor, or the nature of the secured obligation; including the
Since respondents were in actual or physical possession of the
right of a buyer of accounts receivable and a lessor under an
property when they led their complaint against petitioner, the
operating lease for not less than one (1) year.
prescriptive period for the reinvindicatory action had not even
commenced to run, even if petitioner was able to secure TCT over the
property in 1984. The reason for this is that one who is in actual
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 Civil Law and Practical Exercises
Control agreement — an agreement in writing between the
grantor and the secured creditor which perfects the security
interests over intangible asset.
GR: The PPSA shall apply to all transactions of any form that
secure an obligation with movable collateral
EXC: interests in
1. aircrafts subject to RA No. 9497, or the "Civil Aviation
Authority Act of 2008", and
2. ships subject to PD No, 1521, or the "Ship Mortgage Decree
of 1978".
The parties in a security agreement under the PPSA are:
a. Grantor —
1) The person who grants a security interest in collateral to
secure its own obligation or that of another person;
2) A buyer or other transferee of a collateral that, acquires its
right subject to a security interest;
3) A transferor in an outright transfer of an accounts
receivable: or
4) A lessee of goods;
b. Secured creditor — a person that has a security interest. For
the purposes of registration and priority only, it includes a
buyer of account receivable and a lessor of goods under an
operating lease for not less than one (1) year.
b. Asset-speci c rules
Future property
A security agreement may provide
Reviewer
a) for the creation of a security interest in future property or
after-acquired assets, but the security interest in that
property is created only when the grantor acquires rights in it or
the power to encumber it.
b) that a security interest in a tangible asset that is
transformed into a product extends to the product. It is
limited to the value of the encumbered asset immediately before
it became part of the product. e.g. raw materials.
c) that a security interest in a tangible asset extends to its
replacement. It is limited to the value of the encumbered asset
immediately before it was replaced.
Rights to proceeds and commingled funds
a) A security interest in personal property shall extend to its
identi able or traceable proceeds.
b) Where proceeds in the form of funds credited to a deposit
account or money are commingled with other funds:
i) The security interest shall extend to the commingled
money or funds, notwithstanding that the proceeds
have ceased to be identifiable to the extent they remain
traceable;
ii) The security interest in the commingled funds or
money shall be limited to the amount of the proceeds
immediately before they were commingled; and
iii) The security interest against the commingled funds or
money shall be limited to the lowest amount of the
commingled funds or money between the time when
the proceeds were commingled and the time the
security interest in the proceeds is claimed.
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Tangible assets commingled in a mass
a) A security interest in a tangible asset that is commingled in a
mass extends to the mass.
b) A security interest that extends to a mass is limited to the same
proportion of the mass as the quantity of the encumbered asset
bore to the quantity of the entire mass immediately after the
commingling.
Accounts receivables
a) Any stipulation limiting the grantor's right to create a security
interest shall be void.
b) This section shall apply only to accounts receivable arising
from:
i) A contract for the supply or lease of goods or services
other than nancial services;
ii) A construction contract or contract for the sale or lease
of real property; and
iii) A contract for the sale, lease or license of intellectual
property.
c. Perfection of security interests
a) A security interest shall be perfected when it has been created
and the secured creditor has taken one of the following
actions:
i) Registration of a notice with the Registry;
The period of e ectiveness of a notice may be
continued for an additional days by registering an
amendment notice which must be registered within
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six (6) months before the expiration of the e ective

period of the notice. Intangible Assets Speci c Cases
a) A security interest in a deposit account with respect to which Priority and Right of Retention by Operation of Law. — A
ii) Possession of the collateral by the secured creditor;
the secured creditor is the deposit-taking institution or person who
and
the intermediary shall have priority over a competing security
1. provides services or materials with respect to the goods, in
iii) Control of investment property and deposit account. interest perfected by any method.
the ordinary course of business, and
Means of Perfection b) A security interest in a deposit account or investment property
2. retains possession of the goods
Type of Asset Registration Possession Control that is perfected by a control agreement shall have priority
over a competing security interest except a security interest of shall have priority over a perfected security interest in the goods
the deposit-taking institution or the intermediary. until payment thereof.
Tangible ✔ ✔
c) The order of priority among competing security interests shall ⭐Transferee Exceptions. — Any party who obtains, in the
Investment Property be determined on the basis of the time of conclusion of the ordinary course of business, any movable property containing a
and Deposit Account
✔ ✔ security interest shall take the same free of such security interest
control agreements.
provided he was in good faith.
b) On perfection, a security interest becomes e ective against d) Any rights to set-o shall have priority over a security
interest in the deposit account. No such good faith shall exist if the security interest in the
third parties.
movable property was registered prior to his obtaining the
e) A security interest in electronic non-intermediated securities
d. Priority of security interests property.
perfected by a notation of the security interests in the books
General Rule — The priority of security interests and liens in the maintained for that purpose by or on behalf of the issuer shall Purchase Money Security Interest — a security interest in
same collateral shall be determined according to time of have priority. goods taken by the seller to secure the price or by a person who
registration of a notice or perfection by other means, without gives value to enable the grantor to acquire the goods to the extent
f) A security interest in electronic securities NOT held with an
regard to the order of creation of the security interests and liens. that the credit is used for that purpose.
intermediary perfected by the conclusion of a control
agreement shall have priority over a security interest in the Type of Asset Shall have priority
Tangible Assets
a) Secured creditor's possession of the certi cate shall have same securities perfected by registration.
If notice is registered within three (3)
Equipment
priority over a competing security interest perfected by g) A security interest in electronic securities held with an business days after receipt of possession.
registration. intermediary and perfected through a control agreement
shall have priority. If notice is registered not later than three (3)
b) Possession of the instrument or the negotiable document Consumer Goods
business days after receipt of possession.
shall have priority over a security interest perfected by h) The order of priority among competing security interests in
registration. electronic securities NOT held with an intermediary is Inventory, IP and
1. Upon perfection through possession; or
determined on the basis of the time of conclusion of the Livestock
control agreements.

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 Civil Law and Practical Exercises
2. Upon notice to holder of con icting
security interest.
Application of Proceeds
e. Enforcement of security interests
1. Whether through a judicial or extrajudicial process, including
the sale of the secured assets through either a public or private
disposition.
2. The right of the higher-ranking secured creditor to take over
the enforcement process shall include the right to enforce the
rights by any method.
Right of Buyers and Other Third Parties
3. After default, a secured creditor may sell or otherwise dispose
If a secured creditor
of the collateral, publicly or privately, in its present condition
or following any commercially reasonable preparation or
processing.
A disposition is not commercially unreasonable merely
because a better price could have been obtained by disposition
at a di erent time or by a di erent method from the time and
method selected by the secured creditor.
If a method of disposition of collateral has been approved in
any legal proceeding, it is conclusively commercially
reasonable.
Expedited Repossession of the Collateral
Noti cation Requirements Prior to Disposition
Not later than ten (10) days before disposition of the collateral, the
secured creditor shall notify:
1) The grantor;
2) Any other secured creditor or lien holder who, ve (5) days
before the date noti cation is sent to the grantor, held a
security interest or lien in the collateral that was perfected by
registration; and
Reviewer
3) Any other person from whom the secured creditor received
noti cation.
1) The reasonable expenses;
2) The satisfaction of the obligation secured by the security
interest of the enforcing secured creditor; and
3) The satisfaction of obligations secured by any
subordinate security interest or lien.
a) sells the collateral, the buyer shall acquire the grantor's right in
the asset free of the rights of any secured creditor or lien
holder.
b) leases or licenses the collateral, the lessee or licensee shall be
entitled to the bene t of the lease or license during its term
c) sells, leases or licenses the collateral not in compliance herein,
the buyer, lessee or licensee of the collateral shall acquire the
rights or bene ts, provided he was in good faith.
a) Extrajudicial — The secured creditor may take possession of
the collateral without judicial process if the security
agreement so stipulates: Provided, that possession can be
taken without a breach of the peace which shall include
1. entering the private residence of the grantor without
permission,
2. resorting to physical violence or intimidation, or
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3. being accompanied by a law enforcement o cer when
taking possession or confronting the grantor.
b) Judicial — The secured creditor shall
i) be entitled to an expedited hearing;
ii) provide the debtor, grantor, a copy of the
application; and
iii) be entitled to an order granting possession of the
collateral.
Right of Redemption
a) Any person who is entitled to receive a noti cation of
disposition is entitled to redeem the collateral by paying or
otherwise performing the secured obligation in full, including
the reasonable cost of enforcement.
b) The right of redemption may be exercised, unless:
i) The person entitled to redeem has, after the default,
waived in writing the right to redeem;
ii) The collateral is sold or otherwise disposed of,
acquired or collected by the secured creditor, or
when an agreement with those e ects on the collateral
is concluded by the secured creditor; or
iii) The secured creditor has retained the collateral.
f. Prior interests and the transitional period
A prior interest that was perfected under prior law continues to be
deemed perfected under the PPSA and these rules until the earlier
of:
1) The time the prior interest would cease to be perfected
under prior law; and
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2) The beginning of full implementation of the PPSA.
The transitional period shall begin on February 9, 2019, which
is the date of e ectivity of the PPSA. Transitional period means the
period from the date of e ectivity of the PPSA until the date
when the Registry has been established and operational.
Real Estate Mortgage
B rents and income not yet received, indemnity and just
Act No 3135 as amended by Act No 4118
a. De nition and characteristics
A real estate mortgage is an accessory contract whereby the
debtor guarantees the performance of the principal obligation by
subjecting real property or real rights as security in case of
non-performance of such obligation within the period agreed
upon.
Characteristics
1) Accessory;
2) Indivisible;
3) Inseparable;
4) Real Right;
5) Real Property.
Obligations Secured by REM
Dragnet or Blanket Mortgage Clause — a stipulation in a
mortgage contract which provides that the property will serve as
collateral not just for the present loan but also for future loans that
may be granted by the bank to the borrower.
EXC:
Reviewer
1. Debts not made by the debtor of the rst mortgage;
2. Debts secured by another collateral under Reliance of Security
Test, excluding excess amounts.
b. Object of Real Estate Mortgage
1. Immovables and alienable real rights;
2. Extends to natural accessions, improvements, growing fruits,
compensation; (Art 2127, NCC)
3. Future properties CANNOT be included.
c. Rights to alienate
Mortgage credit
The mortgage credit may be alienated or assigned to a third person,
in whole or in part, with the formalities required by law. (Art 2128,
NCC)
Collateral
A stipulation forbidding the owner from alienating the immovable
mortgaged shall be VOID. (Art 2130, NCC)
A stipulation prohibiting the mortgagor from entering into second
or subsequent mortgages was held valid.
d. Essential requisites
1) It must be constituted to secure the performance of the
principal obligation;
2) The mortgagor must be the absolute owner of the
property mortgaged;
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3) The mortgagor should have the free disposal of the property
mortgaged, and in the absence thereof, he should be legally
authorized for the purpose;
4) When the principal obligation becomes due, the property
mortgaged may be alienated for the payment of such
obligation;
No automatic attribution of property by the creditor,
otherwise it will amount to pactum commissorium.
5) The subject matter of the contract must be immovable
property or alienable real rights upon immovable.
It is indispensable, in order that a mortgage may be validly
constituted, that the document in which it appears be recorded in
the Registry of Property.
If the instrument is not recorded, the mortgage is nevertheless
binding between the parties. (Art 2125, NCC)
Fallarme v. Pagedped 2020
The e ect of the failure of the mortgagee to make the subordinate
lien holder a defendant is that the decree entered in the foreclosure
proceeding would not deprive the subordinate lien holder of his
right of redemption. A decree of foreclosure in a suit to which
the holders of a second lien are not parties leaves the equity of
redemption in favor of the lien holders unforeclosed and
una ected.
Here, since Fallarme was not impleaded as a defendant in the
foreclosure proceedings initiated by Pagedped in 2005, as
subordinate lienholder, however, she acquired an equity of
redemption. Thus, failure of the mortgagee to join a subordinate lien
holder as defendant in the foreclosure proceeding does not nullify
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the foreclosure proceeding, but kept alive the equity of
redemption acquired by said junior lien-holder.
The equity of redemption also does not constitute a bar to the
registration of the property in the name of the mortgagee.
Sy v. China Banking 2020
The general rule is that the court possesses no discretion to deny an
application for writ of possession if the judgment debtor failed to
redeem the foreclosed property within the legal redemption period
and hence, ownership is consolidated to the purchaser in the
extrajudicial foreclosure sale. However, the court's obligation to issue
an ex parte writ of possession in favor of the purchaser, in an
extra-judicial foreclosure sale, ceases to be ministerial in
exceptional cases
1. where a third party is claiming the property adversely to that
of the judgment debtor/mortgagor, and
2. where such third party is a stranger to the foreclosure
proceedings wherefrom the ex parte writ of possession was
applied for.
Understandably, the third party adversely possessing the foreclosed
property cannot be dispossessed by a mere ex parte possessory writ in
favor of the purchaser, because to do so would be tantamount to a
summary ejectment of the third party in violation of the latter's right
to due process.
to the lack of personal notice to petitioners of the two amended petitions Ordinary registration
for extra-judicial foreclosure filed by Solidbank. Who may apply
YES. Well-settled is the rule that personal notice to the mortgagor in Decree of registration
extrajudicial foreclosure proceedings is not necessary. An exception
Review of decree of registration; innocent purchaser
to this rule is when the parties stipulate that personal notice is
additionally required to be given to the mortgagor. for value
WON the mortgage contract includes PLC's other loan obligations. Certi cate of Title
YES, but only as to the renewal of the P700K loan. Although a Subsequent Registration
blanket mortgage or a dragnet clause is generally recognized as Voluntary dealings; general provisions
valid, these other obligations, past or future, secured by the REM
must be speci cally described within the terms of the mortgage Involuntary dealings
contract. Here, the REM with maximum amount of P2M was Adverse claim
constituted by the parties to secure PLC's loan obligation in the
Notice of lis pendens
amount of P700K. There is no doubt, therefore, as to the inclusion
of the renewal PN under the coverage of the Deed of REM. Non-registrable Properties
The Deed of REM is clear and explicit that it only covers certain Dealings with unregistered land
loans and other accommodations obtained from Solidbank without
Assurance Fund
reference to its past obligations such as the FLC. Further, the Deed
of REM has a maximum limit of P2M. Plainly, the obligation under Action of compensation from funds
FLC exceeds this benchmark. Limitation of action
Cadastral System of Registration
Land Titles and Deeds Registration through Administrative Proceedings
III Reconstitution of Titles
Property Registration Decree

Torrens System; general principles A Torrens System; general principles

Panacan Lumber Co., et al. v. Solidbank Corp. 2020 Regalian Doctrine Torrens System is a system of registration of land under which,
Original Registration upon the landowner’s application, the court may, after appropriate
WON the extra-judicial foreclosure of the REM is null and void due
proceedings, direct the issuance of a certi cate of title.

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 Civil Law and Practical Exercises
Torrens Title is a certi cate of ownership issued under the
Torrens System, through the Register of Deeds, naming and
declaring the owner of the real property described therein, free
from all liens and encumbrances except such as may be expressly
noted there or otherwise reserved by law.
Title in fee simple — such title in real property as belongs to a
person who has full and unconditional ownership in fact.
Analogous to absolute title.
Ownership signi es proprietorship, dominion or exclusive
control. It is a complete title.
Whereas Title refers to the evidence of a person’s right or the
extent of his interests.
Concept and background
Judicial proceedings for the registration of lands throughout the
Philippines shall be in rem and shall be based on the generally
accepted principles underlying the Torrens system.
Purpose and Meaning of the Torrens System of Registration
Legarda v. Saleeby
The real purpose of that system is to quiet title to land; to put a
stop forever to any question of the legality of the title, except claims
which were noted at the time of registration, in the certi cate, or
which may arise subsequent thereto.
Bishop v. CA
As registered owners of the lots in question, the private respondents
have a right to eject any person illegally occupying their property.
Reviewer
This right is imprescriptible.
MCIAA v. Ijordan 2016
A sale of jointly owned real property by a co-owner without the
express authority of the others is unenforceable against the latter,
but valid and enforceable against the seller.
1) Registration does not vest title. It is merely a procedure
to establish evidence of title over realty. Registration
merely con rms and thereafter protects the title already
possessed.
2) Registration under the Torrens system does not create nor
vest title if title was based on a forged deed. (Heirs of
Dumaliang v. Serban)
3) The system merely confirms ownership and does not
create it. Where such an illegal transfer is made, as in the
case at bar, the law presumes that no registration has been
made and so retains title in the real owner of the land. (Heirs
of Doronio v. Heirs of Doronio)
B Regalian Doctrine
Cruz v. Sec of DENR
The Regalian theory does not negate native title to lands held in
private ownership since time immemorial, adverting to the landmark
case of Carino v. Insular Govt.
The above ruling institutionalized the recognition of the existence of
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native title to land, or ownership of land by Filipinos by virtue of
possession under a claim of ownership since time immemorial
independent of any grant from the Spanish Crown as an exception
to the theory of jure regalia.
C Original Registration
1 Ordinary registration
a Who may apply
Please note that Sec 14 of PD 1529 has been amended by R.A. No.
11573 which was signed into law and later became effective after
the cut-off date of 30 June 2021 for the 2022 Bar Exams.
1) Those who by themselves or through their
predecessors-in-interest have been in open, continuous,
exclusive and notorious possession and occupation of
alienable and disposable lands of the public domain
under a bona de claim of ownership since June 12,
1945, or earlier.
Ong v. Republic
Even if we were to tack petitioner’s claim of ownership over the
subject lot to that of their alleged predecessors-in-interest, spouses
Agustin Cacho and Eufrosinia Bautista in 1971, still this would fall
short of the required possession from June 12, 1945 or earlier.
Further, possession alone is not su cient to acquire title to alienable
lands of the public domain because the law requires possession
AND occupation.
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Mayor of Parañaque v. Ebio 2010

2. The following are excepted from the general rule, to wit:
Republic v. Vega 2011 The subject land was formed from the alluvial deposits that have
a) Agricultural lands of the public domain are
rendered alienable and disposable through any of the gradually settled along the banks of Cut-cut creek. The law that
Section 14 (1) of PD 1529 requires that the property sought to be
exclusive modes enumerated under Section 11 of the governs ownership over the accreted portion is Article 84 of the
registered is already alienable and disposable at the time the
Public Land Act. Spanish Law of Waters of 1866.
application for registration is led.
If the mode is judicial con rmation of imperfect Alluvial deposits along the banks of a creek do not form part
In Republic v. Serrano, the Court held that a DENR Regional
title under Section 48(b) of the Public Land Act, the of the public domain as the alluvial property automatically
Technical Director's certi cation, which is annotated on the
agricultural land subject of the application needs only to belongs to the owner of the estate to which it may have been
subdivision plan submitted in evidence, constitutes substantial
be classified as alienable and disposable as of the time of added. The only restriction provided for by law is that the owner of
compliance with the legal requirement.
the application, provided the applicant’s possession the adjoining property must register the same under the Torrens
It must be emphasized that the present ruling on substantial system; otherwise, the alluvial property may be subject to acquisition
and occupation of the land dated back to June 12,
compliance applies pro hac vice. To establish that the land subject through prescription by third persons.
1945, or earlier.
of the application is alienable and disposable public land, the
b) Lands of the public domain subsequently classi ed Here, neither Guaranteed Homes, Inc. nor the local government of
general rule remains: all applications for original registration under
or declared as no longer intended for public use or Parañaque sought to register the accreted portion. Undoubtedly,
the Property Registration Decree must include both
for the development of national wealth are removed respondents are deemed to have acquired ownership over the
a) a CENRO or PENRO certi cation and subject property through prescription.
from the sphere of public dominion and are considered
b) a certi ed true copy of the original classi cation made by converted into patrimonial lands or lands of private
4) Those who have acquired ownership of land in any other
the DENR Secretary and ownership that may be alienated or disposed through
manner provided for by law.
any of the modes of acquiring ownership.
c) certi ed as a true copy by the legal custodian of the o cial
records.
3) Those who have acquired ownership of private lands or
b Decree of registration
abandoned river beds by right of accession or accretion STEPS in bringing a land under the Torrens system
2) Those who have acquired ownership of private lands by
under the existing laws.
prescription under the provision of existing laws. 1) Survey of land by the Lands Management Bureau or a duly
Republic v. Abrille licensed private surveyor;
Heirs of Malabanan v. Republic 2009 and 2013 En Banc
In order to bring this increase in area, proceedings in registrations of 2) Filing of application for registration by the applicant;
We now observe the following rules relative to the disposition of
land title should have been led instead of an ordinary approval of 3) Setting of the date for the initial hearing of the application;
public land or lands of the public domain, namely:
subdivision plan.
1. As a general rule, all lands of the public domain belong to 4) Transmittal of the application and the date of initial hearing
the State and are inalienable. to the Land Registration Commission;
5) Publication of a notice of the ling of the application and

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 Civil Law and Practical Exercises
date and place of the hearing in the O cial Gazette;
6) Service by mailing of notice upon those known to have
interests in the property;
7) Posting of the notice in a conspicuous place on the land.
8) Filing of answer to the application;
9) Hearing of the case by the Court;
10) Promulgation of judgment by the Court;
11) Issuance of the decree by the Court declaring the decision
nal and instructing the LRC to issue a decree of con rmation
and registration;
12) Entry of the decree of registration in the LRC;
13) Sending of copy of the decree of registration to the
corresponding Register of Deeds; and
14) Transcription of the decree of registration in the registration
book and the issuance of the owner's duplicate original
certi cate of title to the applicant by the Register of Deeds,
upon payment of the prescribed fees.
Amendments of boundaries or area — which shall consist
a) in a substantial change in the boundaries or
b) an increase in area of the land applied for or
c) which involve the inclusion of an additional land
shall be subject to the same requirements of publication and notice as in
an original application.
Republic v. Guerrero
Only actual and extrinsic fraud had been accepted and is
Reviewer
contemplated by the law as a ground to review or reopen a decree of
registration.
The remedy of reversion can ONLY be availed of in cases of
fraudulent or unlawful inclusion of the land in patents or
certi cates of title.
Dream Village v. BCDA 2013
While property of the State or any of its subdivisions patrimonial
in character may be the object of prescription, those “intended for
some public service or for the development of the national wealth”
are considered property of public dominion and therefore not
susceptible to acquisition by prescription.
Republic v. Nicolas 2017 re Survey of the Land
None of the documents submitted by respondent to the trial court
indicated that the subject property was agricultural or part of the
alienable and disposable lands of the public domain. At most, the
CENRO Report and Certification stated that the land was not covered
by any kind of public land application.
To establish that the land subject of the application has been
converted into patrimonial property of the State, an applicant must
prove the following:
1. The subject property has been classi ed as agricultural
land.
2. The property has been declared alienable and disposable.
3. There is an express government manifestation that the
By RGL
for the 2022 Bar
property is already patrimonial, or is no longer retained for
public service or the development of national wealth.
It must be emphasized that without the concurrence of these three
conditions, the land remains part of public dominion and thus
incapable of acquisition by prescription.
Carpo v. Ayala Land 2010
It is admitted that a survey plan is one of the requirements for the
issuance of decrees of registration.
It is not for ALI to allege in its pleadings, much less prove, that its
predecessor-in-interest complied with the requirements for the
original registration of the subject property.
Publication, Opposition of and Default in Heirs of Regalado v.
Republic
If what is sought to be registered are sublots of a bigger lot, the
publication must contain the technical descriptions of the smaller
lots since the adjoining owners of the mother lot are not the
adjoining owners of the smaller lots.
Notice of initial hearing in Director of Lands v. CA and
Abistado
Is newspaper publication of the notice of initial hearing in an original
land registration case mandatory or directory? Mandatory.
Publication in the O cial Gazette su ces to confer jurisdiction
upon the land registration court.
Indeed, if mailing of notices is essential, then by parity of reasoning,
publication in a newspaper of general circulation is likewise
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 Civil Law and Practical Exercises
imperative since the law included such requirement in its detailed
provision.
Proof Required in Registration Proceedings in Recto v. Republic
The belated declaration of the lot for tax purposes does not
necessarily mean that possession by the previous owners thereof did
not commence in 1945 or earlier.
As long as the testimony supporting possession for the required
period is credible, the court will grant the petition for registration. A
duly certi ed blue print copy of the tracing cloth with the
technical description is su cient compliance and the submission
of the survey plan on tracing cloth may be dispensed with.
Azana v. Lumbo
Non-declaration of property for tax purposes does not necessarily
negate ownership.
Republic v. Barandiaran
It is settled that tax receipts and declarations of ownership for tax
purposes are not incontrovertible evidence of ownership; they only
become evidence of ownership acquired by prescription when
accompanied by proof of actual possession of the property.
Republic v. Sta. Ana Burgos and Buenaventura v. Republic
The voluntary declaration of a piece of property for taxation
purposes manifests not only one’s sincere and honest desire to obtain
title to the property and announces his adverse claim against the
State and all other interested parties, but also the intention to
contribute needed revenues to the Government. Such an act
strengthens one’s bona de claim of acquisition of ownership.
Reviewer
Republic v. dela Paz 2010
The surveyor's annotation presented by respondents is NOT the
Factor v. Mariel, Jr.
kind of proof required by law to prove that the subject land falls
within the alienable and disposable zone.
Republic v. Espinosa 2012
Even if Espinosa’s application may not be dismissed due to his failure
to present the original tracing cloth of the survey plan, there are
numerous grounds for its denial. The blueprint copy of the
advanced survey plan may be admitted as evidence of the identity
and location of the subject property if:
a) it was duly executed by a licensed geodetic engineer;
b) it proceeded o cially from the Land Management Services
(LMS) of the DENR; and
c) it is accompanied by a technical description of the property
which is certi ed as correct by the geodetic surveyor who
conducted the survey and the LMS of the DENR.
However, while such blueprint copy of the survey plan may be
o ered as evidence of the identity, location and the boundaries of
the property applied for, the notation therein may not be admitted as
evidence of alienability and disposability.
Hearing; Judgment; Issuance of Decree
Republic v. San Lorenzo
Respondent should not be faulted if the initial hearing that was
conducted was outside the 90-day period set forth under Sec. 23 of
P.D. 1529, and that respondent might have substantially complied
By RGL
for the 2022 Bar
with the requirement thereunder relating to the registration of the
subject land.
A writ of possession may be issued only pursuant to a decree of
registration in original land registration proceedings not only against
the person who has been defeated in a registration case but also
against anyone adversely occupying the land or any portion thereof
during the proceedings up to the issuance of the decree.
Republic v. Nillas
The rule is that “neither laches nor the statute of limitations
applies to a decision in a land registration case.”
There is nothing in the law that limits the period within which the
court may order or issue a decree. The reason is xxx that the
judgment is merely declaratory in character and does not need to be
asserted or enforced against the adverse party. Furthermore, the
issuance of a decree is a ministerial duty both of the judge and of
the LRC.
PD No. 1529 does not speci cally provide for execution of
judgments in the sense ordinarily understood and applied in civil
cases, the reason being there is no need for the prevailing party
to apply for a writ of execution in order to obtain the title,
that Rule 39 is not applicable to land registration cases in the rst
place.
Republic v. Claro Yap 2018
Section 39 of PD No. 1529 provides that the original certi cate of
title shall be a true copy of the decree of registration. There is,
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therefore, a need to cancel the old decree and a new one issued in
order for the decree and the OCT to be exact replicas of each other.
Correct Procedure
1. Petition for cancellation of old decree;
2. Re-issuance of decree;
3. Issuance of OCT pursuant to the re-issued decree.
Section 39 of PD 1529 states that: "The original certi cate of title
shall be a true copy of the decree of registration."
This provision is signi cant because it contemplates an OCT which
is an exact replica of the decree. Ostensibly, therefore, the
cancellation of the old decree and the issuance of a new one is
necessary.
When OCT Takes E ect
Manotok Realty v. CLT Realty
The OCT is issued on the date the decree of registration is
transcribed. What stands as the certi cate of title is the transcript of
the decree or registration made by the registrar of deeds in the
registry.
Angeles v. Sec of Justice 2010
It was not unlawful for public respondents to refuse compliance
with the RTC Order, and the act being requested of them is not
their ministerial duty; hence, mandamus does not lie and the
petition must be dismissed.
Did public respondents have sufficient legal basis to refuse to grant
Reviewer
petitioner's request?
The issuance by the LRA o cials of a decree of registration is not a
purely ministerial duty in cases where they nd that such
would result to the double titling of the same parcel of land.
Review of decree of registration; innocent
c
purchaser for value
Remedies Available to the Losing Party in a Registration Case
1) Motion for New Trial or Reconsideration under Rule 37 of
the Rules of Court;
2) Petition for Relief from Judgment under Rule 38 of the Rules
of Court;
3) Appeal to the Court of Appeals or the Supreme Court, in the
same manner as in ordinary actions.
Remedies under the Property Registration Decree available to
the aggrieved party in cases of fraudulent registration
1) Petition for Review of Decree (Sec 32)
2) Action for Reconveyance (Secs 53 and 96)
3) Action for Damages (Sec 32)
4) Claim Against the Assurance Fund (Sec 95)
Other Remedies Available
1) Action for cancellation or reversion instituted by the
government through the Solicitor General (Sec 101 of the
Public Land Act);
2) Annulment of Judgment (Rule 47, Rules of Court);
3) Criminal Prosecution under the RPC.
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for the 2022 Bar
Notes
1) Petition for Review — When an original certi cate of title is
secured fraudulently and in breach of trust, a direct attack
on the title is a petition for review of decree of registration.
(Ingusan v. Heirs of Reyes)
To avail of a petition for review, the following requisites must
be satis ed:
a. The petitioner must have an estate or interest in the land;
b. He must show actual fraud in the procurement of the
decree of registration;
c. The petition must be led within one year from the
issuance of the decree by the Land Registration Authority;
and
d. The property has not yet passed to an innocent
purchaser for value. (Eland Philippines, Inc. v. Garcia
2010)
2) Reconveyance — The real owner has the right to sue for
reconveyance (an action in personam) of a property. The
action is imprescriptible if the land wrongfully registered is still
in the name of the person who caused the registration. (Heirs
of Dumaliang v. Serban)
Reconveyance is available not only to the legal owner of a
property but also to the person with a better right than
the person under whose name said property was erroneously
registered. (Gasataya v. Mabasa, Pacete v. Asotigue 2012)
An action for reconveyance based on an implied or
constructive trust prescribes in 10 years. All that must be
alleged in the complaint are two (2) facts:
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Civil Law and Practical Exercises
1) that the plainti was the owner of the land and,
2) that the defendant had illegally dispossessed him of
the same (Sanjorjo v. Quijano)
It is incumbent upon the aggrieved party to show
1) that he has a legal claim on the property superior to
that of the registered owner and
2) that the property has not yet passed to the hands of an
innocent purchaser for value. (Sps Roque v. Aguado
2014)
An action for reconveyance and cancellation of title prescribes
in 10 years from the time of the issuance of the Torrens title
over the property. (Sps Aboitiz v. Sps Po 2017)
3) Reversion — The objective of an action for reversion of
public land is the cancellation of the certi cate of title and the
resulting reversion of the land covered by the title to the State.
Only the State, through the OSG, can institute reversion
proceedings. (Cawis v. Cerilles 2010)
It is proper when public land is fraudulently awarded and
disposed of to private individuals or corporations, or even by
oversight. (Republic v. Espinosa 2017)
4) Laches — Although a registered owner may lose his right to
recover possession of his registered property by reason of
laches, the equitable defense is unavailing to one who has not
shown any color of title to the property such as a squatter.
(D’Oro Land Realty & Development Corporation v. Claunan)
Key Concepts
5) Damages — If the property has passed into the hands of an
innocent purchaser for value, for damages. (Reyes v.
Montemayor)
Reviewer
6) Annulment of Judgments, Final Orders or Resolutions
(Rule 47) — An action for annulment of free patents and
certi cates of title also seeks for the cancellation and
nulli cation of the certi cate of title, but once the same is
granted, it does not operate to revert the property back to the
State, but to its lawful owner.
In such action, the nullity arises not from fraud or deceit, but
from the fact that the director of the Land Management
Bureau had no jurisdiction to bestow title; hence, the issued
patent or certi cate of title was void ab initio. (Narcise v.
Valbueco 2017)
D Certificate of Title
a. Original Certi cate of Title — the rst title issued in the
name of the registered owner by the Register of Deeds (RoD)
covering a parcel of Land which has been registered under the
Torrens system by virtue of a judicial or administrative
proceeding. It consists of:
1. One original copy led in the RoD; and
2. The owner’s duplicate certi cate delivered to the
owner.
b. Transfer Certi cate of Title — issued by the RoD in favor
of a transferee to whom the ownership of a registered land has
been transferred by any legal mode of conveyance (e.g. sale,
donation).
1. Best Evidence of Ownership — Certi cate of Title is the
best evidence of ownership of the land described therein. (Lee
Tek Sheng v. CA)
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for the 2022 Bar
2. Constructive Notice — A Torrens title binds the whole
world. (People v. Reyes)
The issuance of a torrens certi cate of title is constructive
notice to the whole world that the person in whose name it is
issued has become the owner of the lot described therein. (Sps
Borbe v. Calalo)
3. Curtain Principle — Unregistered Claims — A Torrens
title bars all prior claims not registered on the title. (Republic v.
Umali)
All claims and liens of whatever character existing against the
land prior to the issuance of certi cate of title are barred, if not
noted on said certi cate. (Id.)
The registered owner of a Torrens Certi cate of Title and the
subsequent purchaser for value and in good faith of registered
land shall hold the certi cate, free from all liens and
encumbrances, except those noted in said certi cate and those
speci ed by law. (Secs 44 and 46 PD 1529)
4. Indefeasibility — A Torrens certi cate of title serves as
evidence of an indefeasible title to the property in favor of the
person whose name appears therein. (Ortegas v. Hidalgo)
Title to the property covered by a Torrens certi cate becomes
incontrovertible or indefeasible after one year from the
entry of the decree of registration. (Heirs of Santiago v. Heirs of
Santiago)
A certi cate of title cannot be defeated by adverse, open and
notorious possession by third persons. (D’Oro Land Realty &
Dev’t Corp. v. Claunan)
5. Imprescriptible —
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Civil Law and Practical Exercises
Section 47. Registered land not subject to prescriptions. —
No title to registered land in derogation of the title of the
registered owner shall be acquired by prescription or
adverse possession.
Bishop v. CA held that even if it be supposed that the holders
of the Torrens Title were aware of the other persons'
occupation of the property, regardless of the length of that
possession, the lawful owners have a right to demand the
return of their property at any time as long as the possession
was unauthorized or merely tolerated, if at all. (Supapo v. Sps
De Jesus 2015)
Note that Section 47 of P.D. No. 529 covers acquisitive
prescription. In a case, however, it was extinctive prescription,
and not acquisitive prescription, which barred the action of
petitioners. (Pangasinan v. Almazora 2015)
An action for reconveyance can indeed be barred by
prescription if based on implied or constructive trust and must
perforce prescribe in ten (10) years from the issuance of the
Torrens title over the property. An exception to this rule is
when the plainti is in possession of the land to be reconveyed.
(Tiongco v. Tiongco 2011)
6. Integrity of Titles — Insurance Principle — An innocent
purchaser for value, relying on a Torrens title issued, is
protected. (Nazareno v. CA)
7. Not Subject to Collateral Attack — A certi cate of title
shall not be the subject to collateral attack. It cannot be
altered, modi ed or cancelled, except in a direct proceeding in
accordance with law. (Vda de Retuerto v. Barz)
Reviewer
The action for the declaration of nullity of deed of sale is not
the direct proceeding required by law to attack a Torrens
certi cate of title. (Taparuc v. Vda de Mende)
8. Fraudulent Registration — The person in whose name the
land is fraudulently registered holds it as a mere trustee, with
the legal obligation to reconvey the property and the title
thereto in favor of the true owner. (Caro v. CA)
9. Forgery — A fraudulent or forged document of sale may
become the root of a valid title if the certi cate of title has
already been transferred from the name of the true owner to
the name of the forger or the name indicated by the forger.
(Reyes v. Borbon)
However, the doctrine cannot be applied where the owner still
holds a valid and existing certi cate of title covering the same
interest in a realty. (Torres v. CA)
10. Loss — As between two innocent persons, the one who made
it possible for the wrong to be done should be the one to bear
the resulting loss. (Traders Royal Bank v. CA)
11. Presumption: Regular and Valid — A Torrens title is
presumed to have been issued regularly and legally, unless
contradicted and overcomed by clear, convincing, strong and
irrefutable proof. More than merely preponderant
evidence is required. (Ramos v. Rodriguez)
12. Double Titles — Where two certi cates of title include the
same land, the certi cate of title that is earlier in date
prevails. (Garcia v. CA)
Registration Requirements
13. Priority of Rights — “Prior tempura potior jure”. He who is
rst in time is preferred in right. (Santiago v. CA)
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for the 2022 Bar
14. Reliance on the Title — Mirror Principle — The
minimum requirement for one to be a good faith buyer for
value is that the vendee at least sees the owner's duplicate copy of
the title and relies upon the same.
EXCEPTION: This principle does not apply when the
party has actual knowledge of facts and circumstances
that would impel a reasonably cautious man to make such
inquiry or when the purchaser has knowledge of a defect or
the lack of title in his vendor or of su cient facts to induce a
reasonably prudent man to inquire into the status of the title
of the property in litigation. (Domingo v. Roces)
A transferee who acquires the property covered by a reissued
owner's copy of the certi cate of title without taking the
ordinary precautions of honest persons in doing business and
examining the records of the proper Registry of Deeds, or who
fails to pay the full market value of the property is not
considered an innocent purchaser for value. (Sps Cusi v.
Domingo 2013)
15. Titles derived from a void title — If a certi cate of title is
void, all subsequent certi cates of title derived therefrom are
also void because of the truism that the “spring cannot rise
higher than its source”. (Mathay v. CA)
E Subsequent Registration
1 Voluntary dealings; general provisions
a) Compliance with the essential requisites of a contract;
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b) Observance of the formal requirements of public
instruments;
c) Performance of the jurisdictional requisites for registration.
In cases of voluntary registration of documents, an innocent
purchaser for value of registered land becomes the registered owner,
and, in contemplation of law the holder of a certi cate of title, the
moment he
1. presents and les a duly notarized and valid deed of sale;
2. and the same is entered in the day book;
3. and at the same time he surrenders or presents the owner's
duplicate certi cate of title covering the land sold;
4. and pays the registration fees,
because what remains to be done lies not within his power to perform
Primary Entry Book
1. Entry alone produces the e ect of registration. (DBP v. RD of
Nueva Ecija, Autocorp Group v. CA)
The Primary Entry of a Void Contract does not produce the
e ect of registration. (Ballesteros v. Abion)
Registration must be done in the proper registry in order to
bind the land. (Sps. Abrigo v. de Vera)
2. The prevailing rule is that there is e ective registration
once the registrant has ful lled all that is needed of him
for purposes of entry and annotation, so that what is left to
be accomplished lies solely on the register of deeds. (NHA v.
Basa 2010)
3. In voluntary registration, such as a sale, mortgage, lease and
the like, if the owner's duplicate certi cate be not
Reviewer
surrendered and presented or if no payment of registration
fees be made within 15 days, entry in the day book of the deed
of sale does NOT operate to convey and a ect the land sold.
(Durawood v. Bona 2012)
4. Whether the entry of a notice of lis pendens in the primary entry
book or day book of the Register of Deeds serves as notice to third
persons of the existence of such claim against a registered land.
YES. An involuntary instrument such as an attachment, a
lien, a notice of lis pendens, and the like, are adverse to the
claims of the registered owner. Thus, he cannot be expected to
provide all the necessary documents such as his owner's
duplicate copy of the title.
The mere recording of the involuntary instrument in the
primary entry book or day book is su cient to bind the
registered land and a ect third persons dealing with it.
(Mendoza v. Garaan 2015)
5. Documents, like the certi cates of title do not e ect a
conveyance of or encumbrances on a parcel of land.
Registration is the operative act that conveys ownership
or a ects the land insofar as third persons are concerned.
(Saberon v. Ventanilla 2014)
Double Sales. — Act 3344 provides for the system of recording of
transactions or claims over unregistered real estate without prejudice
to a third party with a better right. But if the land is registered under
the Land Registration Act, and it is sold and the sale is registered not
under the Land Registration Act but under Act 3344, as amended,
such sale is not considered registered. (Melencion v. CA)
Buyers and Mortgagees in Good Faith
By RGL
for the 2022 Bar
1. To prove good faith, a buyer of registered and titled land
need only show that he relied on the face of the title to the
property.
Such degree of proof of good faith, however, is su cient only
when the following conditions concur:
a. first, the seller is the registered owner of the land;
b. second, the latter is in possession thereof; and
c. third, at the time of the sale, the buyer was not aware
i. of any claim or interest of some other person, or
ii. of any defect or restriction in the title of the seller
or in his capacity to convey title to the property.
(Uy v. Fule 2014)
2. A bank whose business is impressed with public interest is
expected to exercise more care and prudence in its dealings
than a private individual, even in cases involving registered
lands. (LBP v. Poblete 2013)
3. If the land purchased is in the possession of a person other
than the vendor, the purchaser must be wary and must
investigate the rights of the actual possessor. Without such
inquiry, the purchaser cannot be said to be in good faith and
cannot have any right over the property. (Gabutan v.
Nacalaban 2016)
4. A buyer cannot claim to be an innocent purchaser for value by
merely relying on the TCT of the seller while ignoring all the
other surrounding circumstances relevant to the sale. (Nobleza
v. Nuega 2015)
5. Not in Good Faith. Nor was it safe for them to simply rely
on the face of Sy’s TCT in view of the fact that they were
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aware that her TCT was derived from a duplicate owner’s copy
reissued by virtue of the loss of the original duplicate owner’s
copy. That circumstance should have already alerted them to
the need to inquire beyond the face of Sy’s TCT. (Sps Cusi v.
Domingo 2013)
6. The doctrine of mortgagee in good faith assumes that the
title to the subject property had already been transferred or
registered in the name of the impostor who thereafter
transacts with a mortgagee who acted in good faith. In the case
at bench, it must be emphasized that the title remained to be
registered in the name of Bernardo, the rightful and real
owner, and not in the name of the impostor. (Ruiz v.
Dimailig 2016 Special En Banc)
Sale Invoicing Real Estate
1. In a lump sum contract, a vendor is generally obligated to
2 Involuntary dealings
deliver all the land covered within the boundaries, regardless of
whether the real area should be greater or smaller than that
a Adverse claim
recited in the deed. However, in case there is con ict between
the area actually covered by the boundaries and the estimated
area stated in the contract of sale, he/she shall do so only when
the excess or de ciency between the former and the latter is
reasonable.
Declaring Ingram as the owner of the whole 12,000 sqm when
what was only agreed upon is 6,200 sqm is NOT reasonable.
(Arcaina v. Ingram 2017)
Caveat Emptor. — How to conduct Due Diligence Verification of Title
1. Verify the origin, history, authenticity and validity of the title
with the Register of Deeds and Land Registration Authority;
2. Engage the services of a competent and reliable geodetic
engineer to verify the boundary, metes and bounds of the
Reviewer
lot subject of said title based on the technical description in the
said title and the approved survey plan in the Land
Management Bureau;
3. Conduct an actual ocular inspection;
4. Inquire from the owners and possessors of adjoining lots
with respect to the true and legal ownership of the lot in
question;
5. Put up signs that say lot is being purchased, leased or
encumbered;
6. Undertake such other measures to make the general public
aware that said lot will be subject to alienation, lease or
encumbrance by the parties (Domingo Realty Inc. v. CA,
Locsin v. Hizon 2014)
b Notice of lis pendens
1. Essential Requisites
a. The claimant must have an interest in the land adverse to
the registered owner;
b. The right or interest must arise subsequent to the original
registration of the land;
c. The registration of such interest or right is not otherwise
provided by P.D. 1529;
d. The claim must be in writing, signed and sworn to by the
adverse claimant, and must comply with formal
requirements.
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for the 2022 Bar
2. Cancellation of an adverse claim is still necessary even after the
lapse of thirty days to render it ine ective. (Sajonas v. CA)
3. The annotation of an adverse claim is a measure designated to
protect the interest of a person over a piece of real property
where the registration of such interest or right is not
otherwise provided by the Land Registration Act.
It was not shown in this case that there was a justi able reason
why the deed could not be registered. Hence, adverse claim
cannot substitute for registration. (Rodriguez v. CA)
4. Although the notice of adverse claim pertained to only one lot
and Filinvest wanted to acquire interest in some other lots
under the same title, the notice served as warning to it that one
of the owners was engaged in double selling. (Golden Haven
Memorial Park v. Filinvest 2010)
1. A notice of lis pendens is an announcement to the whole
world that a particular real property is in litigation, serving as
a warning that one who acquires an interest over said property
does so at his own risk, or that he gambles on the result of the
litigation over the said property.
2. It has a twofold effect:
a. to keep the subject matter of the litigation within the
power of the court until the entry of the nal judgment to
prevent the defeat of the nal judgment by successive
alienations; and
b. to bind a purchaser, bona de or not, of the land subject
of the litigation to the judgment or decree that the court
will promulgate subsequently. (De La Merced v. GSIS, et
al 2011)
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Civil Law and Practical Exercises
3. Requisites of a Valid Lis Pendens
a. There must be an action or proceeding a ecting the title
of real property on the possession thereof;
b. The court must have jurisdiction over the subject matter
and the property;
c. That the property is su ciently described in the
complaint.
4. The doctrine of lis pendens has NO application to a
proceeding in which the only object sought is the recovery of a
money judgment, though the title or right of possession to
property be incidentally a ected. (Atlantic Erectors, Inc. v.
Herbal Cove Realty)
5. A notice of lis pendens, once duly registered, may be cancelled
by the trial court before which the action involving the
property is pending.
The power to cancel a notice of lis pendens is exercised only
under exceptional circumstances, such as:
a. those imputable to the party who caused the annotation;
b. where the litigation was unduly prolonged to the
prejudice of the other party;
c. where the main case was dismissed for non prosequitur on
the part of the plainti ; or
d. where judgment was rendered against the party who
caused such a notation.
In such instances, said notice is deemed ipso facto cancelled.
(Casim Construction Supplies v. RoD of Las Piñas 2010)
6. An administrative remedy under Section 77 of PD 1529
provides the appropriate measure to have a notice of lis
Reviewer
pendens cancelled out from the title, that is by presenting to
the Register of Deeds, after nality of the judgment rendered
in the main action, a certi cate executed by the clerk of court
before which the main action was pending to the e ect that
the case has already been nally decided by the court.
F Non-registrable Properties
Land Bank of the Philippines v. Republic
A certi cate of title is VOID when it covers property of public
domain classi ed as forest or timber or mineral land; any title
issued covering non-disposable lots even in the hands of an alleged
innocent purchaser for value shall be cancelled.
Chavez v. Public Estates Authority
Foreshore lands became inalienable as natural resources of the
State, unless reclaimed by the government and classi ed as
agricultural lands of the public domain. These lands remained sui
generis, as the only alienable or disposable lands of the public
domain the government could not sell to private parties.
The only way the government can sell to private parties
government reclaimed lands of the public domain is for the
legislature to pass a law authorizing such sale. In the hands of
the government agency tasked and authorized to dispose of
alienable lands of the public domain, these lands are still public,
not private lands.
Chavez v. National Housing Authority
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for the 2022 Bar
The NHA is an “end-user agency” authorized by law to administer
and dispose of reclaimed lands.
The moment titles over reclaimed lands based on the special
patents are transferred to the NHA by the Register of Deeds, they
are automatically converted to patrimonial properties of the
State which can be sold to Filipino citizens and private
corporations, 60% of which are owned by Filipinos.
Santulan v. Executive Secretary
The regulations give Santulan a preferential right to lease the land as
a riparian owner. In the case of littoral lands, he who loses by the
encroachments of the sea should gain by its recession.
Cantoja v. Lim 2010
Being the owner of the land adjoining the foreshore area, respondent
is the riparian or littoral owner who has preferential right to
lease the foreshore area as provided under paragraph 32 of the Lands
Administrative Order No. 7-1 s. 1936.
Enriquez v. Director of Lands 2017
The subject lands may still be declared public lands notwithstanding
the Director of Lands' failure to appeal from the RTC decision.
Neither did such failure of the Director of Lands to appeal foreclose
the appellate court from declaring the land in question to be public
land, since the oppositors and the herein petitioners are both seeking
the registration of their title pursuant to the provisions of Section
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Civil Law and Practical Exercises
48 (b) of the Public Land Law.
G Dealings with unregistered land
Radiowealth v. Palileo
Under Act No. 3344, registration of instruments a ecting
unregistered lands is "without prejudice to a third party with a better
right". Mere registration of a sale in one's favor does not give him
any right over the land if the vendor was not anymore the owner of
the land having previously sold the same to somebody else even if the
earlier sale was unrecorded.
The purchaser of unregistered land at a sheri 's execution sale only
steps into the shoes of the judgment debtor, and merely acquires
the latter's interest in the property sold as of the time the property
was levied upon.
MCIAA v. Tirol
Registration of instruments must be done in the proper
registry in order to e ect and bind the land. Prior to the Property
Registration Decree of 1978, Act No. 496 governed the recording of
transactions involving registered land, i.e., land with a Torrens title.
On the other hand, Act No. 3344, as amended, provided for the
system of recording of transactions over unregistered real estate
without prejudice to a third party with a better right.
Consequently, the fact that MCIAA was able to register its Deed of
Absolute Sale under Act No. 3344 is of no moment, as the property
subject of the sale is indisputably registered land.
Reviewer
Sabitsana v. Muertegui 2013
Article 1544 does not apply to sales involving unregistered land.
The sale to respondent Juanito was executed on September 2, 1981
via an unnotarized deed of sale, while the sale to petitioners was
made via a notarized document only on October 17, 1991, or ten
years thereafter. Thus, Juanito who was the rst buyer has a better
right to the lot, while the subsequent sale to petitioners is null and
void, because when it was made, the seller Garcia was no longer the
owner of the lot. Nemo dat quod non habet.
H Assurance Fund
1 Action of compensation from funds
Recovery from Assurance Fund — A person who,
a. without negligence on his part,
b. sustains loss or damage, or
c. is deprived of land or any estate or interest therein
d. in consequence of the bringing of the land under the
operation of the Torrens system or
e. arising after original registration of land, through fraud or
in consequence of any error, omission, mistake or
misdescription in any certi cate of title, and
f. who by the provisions of this Decree is barred or otherwise
precluded under the provision of any law from bringing
an action for the recovery of such land or estate or interest
therein,
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may bring an action in any court of competent jurisdiction for
the recovery of damage to be paid out of the Assurance Fund.
2 Limitation of action
1) Any action for compensation against the Assurance Fund by
reason of any loss, damage or deprivation of land or any
interest therein shall be instituted within a period of six years
from the time the right to bring such action rst occurred.
2) The right of action shall survive to the legal representative of
the person sustaining loss or damage, unless barred in his
lifetime.
3) If at the time such right of action rst accrued the person
entitled to bring such action was a minor or insane or
imprisoned, or otherwise under legal disability, such person or
anyone claiming from, by or under him may bring the proper
action at any time within two years after such disability has
been removed, notwithstanding the expiration of the original
period of six years rst above provided.
Cadastral System of Registration
I
Act No. 2259, as amended
Manotok Realty, Inc. v. CLT Realty
Such jurisdiction is limited to the necessary correction of technical
errors in the description of the lands, provided such corrections do
not impair the substantial rights of the registered owner, and that
such jurisdiction cannot operate to deprive a registered owner of his
title.
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Civil Law and Practical Exercises
It was further clari ed in Timbol v. Diaz that the limited jurisdiction
of the cadastral court over such lands even extends to the
determination of “which one of the several con icting registered
titles shall prevail, as such power would seem to be necessary for a
complete settlement of the title to the land, the express purpose of
cadastral proceedings, and must therefore be considered to be within
the jurisdiction of the court in such proceedings.”
Republic v. Espinosa 2017
Here, the State hinges its whole claim on its lone piece of evidence,
the land classi cation map prepared in 1986. The records show,
however, that LC Map No. 2978 was not formally o ered in
evidence. The reclassi cation of the area where the property is
located in 1986 should not prejudice Espinosa and her
successor-in-interest.
To grant the reversion based on a subsequent reclassi cation, more
so on lack of evidence, would amount to taking of private property
without just compensation and due process of law.
Registration through Administrative
Proceedings
J disposable agricultural land of the public domain falls on the
Public Land Act
Please note that Sec 48(b) of CA 141 has been amended by R.A.
No. 11573 which was signed into law and later became effective
after the cut-off date of 30 June 2021 for the 2022 Bar Exams.
Reviewer
Judicial Con rmation of Imperfect or
Incomplete Title
SEC 48. The following-described citizens of the Philippines,
occupying lands of the public domain or claiming to own any
such lands or an interest therein, but whose titles have not
been perfected or completed, may apply to the RTC of the
province where the land is located for con rmation of their
claims and the issuance of a certi cate of title therefor, under
the Land Registration Act , to wit:
xxxx
(b) Those who by themselves or through their predecessors in
interest have been in open, continuous, exclusive, and
notorious possession and occupation of agricultural lands of
the public domain, under a bona de claim of acquisition or
ownership, for at least thirty years immediately preceding the
ling of the application for con rmation of title except when
prevented by war or force majeure. These shall be conclusively
presumed to have performed all the conditions essential to a
Government grant and shall be entitled to a certi cate of title
under the provisions of this chapter.
Republic v. Noval 2017
The burden of proving that the property is an alienable and
applicant, not the State. The OSG, however, has the correlative
burden to present e ective evidence of the public character of the
land.
Admittedly, respondents have failed to present any document from
the Secretary of the DENR certifying that the property is part of the
alienable and disposable land of the public domain. On the other
hand, the CA observed, as this Court has, that the OSG has failed to
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for the 2022 Bar
"present any evidence, testimonial or documentary evidence to
support its opposition.
When the State has no e ective opposition, except for a pro
forma opposition, to controvert an applicant's convincing
evidence of possession and occupation, presumptions are tilted
to this applicant's favor.
The burden of evidence lies on the party who asserts an a rmative
allegation. Therefore, if the State alleges that lands belong to it, it is
not excused from providing evidence to support this allegation.
This Court's previous rulings imposing the burden of overcoming
the presumption that a land is public should only be strictly applied
when a manifestly unregistrable land is in danger of fraudulent
titling-not when it will promote unfairness and violation of due
process rights.
Republic v. Rovency Realty 2018
Section 3, Article XII applies only to lands of the public domain.
Private lands are, therefore, outside of the prohibitions and
limitations stated therein. Thus, the appellate court correctly
declared that the 12-hectare limitation on the acquisition of lands
under Section 3, Article XII of the 1987 Constitution has no
application to private lands.
RRDC failed to establish the requisites under Sec 14(1):
a. RRDC failed to present a certi ed true copy of the original
classi cation approved by the DENR Secretary declaring
the subject land alienable and disposable.
b. RRDC also failed to prove that it and its individual
predecessors-in-interest su ciently complied with the
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Civil Law and Practical Exercises
required period and nature of possession. RRDC failed to
prove that its possession of the land, or at the very least, its
individual predecessors-in-interest's possession over the
same was not mere ction.
RRDC also failed to establish the requisites under Sec 14(2):
a. RRDC did not present any evidence which would show
that the subject land was expressly declared as no longer
intended for public service or the development of the
national wealth, or that the property has been converted
into patrimonial. Hence, it failed to prove that acquisitive
prescription has begun to run against the State, and that it
has acquired title to the subject land by virtue thereof.
Republic v. Herbieto
The Public Land Act, as amended, governs lands of the public
domain, except timber and mineral lands, friar lands, and
privately-owned lands which reverted to the State. It explicitly
enumerates the means by which public lands may be disposed, as
follows:
1. For homestead settlement;
2. By sale;
3. By lease;
4. By con rmation of imperfect or incomplete titles;
a. By judicial legalization; or
b. By administrative legalization (free patent)
Under the Property Registration Decree, there already exists a title
Reviewer
which is con rmed by the court; while under the Public Land Act,
the presumption always is that the land applied for pertains to the
State, and that the occupants and possessors only claim an interest in
the same by virtue of their imperfect title or continuous, open, and
notorious possession.
Respondents' application for registration of the Subject Lots must
have complied with the substantial requirements under Section
48(b) of the Public Land Act and the procedural requirements
under the Property Registration Decree.
Moreover, provisions of the Civil Code on prescription of
ownership and other real rights apply in general to all types of land,
while the Public Land Act speci cally governs lands of the public
domain. Relative to one another, the Public Land Act may be
considered a special law that must take precedence over the Civil
Code, a general law. It is an established rule of statutory construction
that between a general law and a special law, the special law prevails –
Generalia specialibus non derogant.
K Reconstitution of Titles
SEC 110. Reconstitution of lost or destroyed original of
Torrens title. Original copies of certi cates of title lost or
destroyed in the o ces of Register of Deeds as well as liens and
encumbrances a ecting the lands covered by such titles shall
be reconstituted judicially in accordance with the procedure
prescribed in Republic Act No. 26 insofar as not inconsistent
with this Decree. The procedure relative to administrative
reconstitution of lost or destroyed certi cate prescribed in said
Act is hereby abrogated.
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for the 2022 Bar
Notice of all hearings of the petition for judicial reconstitution
shall be given to the Register of Deeds of the place where the
land is situated and to the Commissioner of Land
Registration. No order or judgment ordering the
reconstitution of a certi cate of title shall become nal until
the lapse of thirty days from receipt by the Register of Deeds
and by the Commissioner of Land Registration of a notice of
such order or judgment without any appeal having been led
by any of such o cials.
Saint Mary Crusade v. Riel 2015
The petitioner did not present the duplicate or certi ed copy of
OCT No. 1609. Thereby, it disobeyed Section 2 and Section 3 of
Republic Act No. 26, the provisions that expressly listed the
acceptable bases for judicial reconstitution of an existing Torrens
title, to wit:
Sec. 2. Original certi cates of title shall be reconstituted from
such of the sources hereunder enumerated as may be available,
in the following order:
a) The owner's duplicate of the certi cate of title;
b) The co-owner's, mortgagee's, or lessee's duplicate of the
certi cate of title;
c) A certi ed copy of the certi cate of title, previously issued
by the register of deeds or by a legal custodian thereof;
d) An authenticated copy of the decree of registration or
patent, as the case may be, pursuant to which the original
certi cate of title was issued;
e) A document, on le in the registry of deeds, by which the
property, the description of which is given in said
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Civil Law and Practical Exercises
document, is mortgaged, leased or encumbered, or an
authenticated copy of said document showing that its
original had been registered; and
f) Any other document which, in the judgment of the court, is
su cient and proper basis for reconstituting the lost or
destroyed certi cate of title.
Sec. 3. Transfer certi cates of title shall be reconstituted from
such of the sources hereunder enumerated as may be available,
in the following order:
a) The owner's duplicate of the certi cate of title;
b) The co-owner's, mortgagee's, or lessee's duplicate of the
certi cate of title;
c) A certi ed copy of the certi cate of title, previously issued
by the register of deeds or by a legal custodian thereof;
d) The deed of transfer or other document, on le in the
registry of deeds, containing the description of the property,
or an authenticated copy thereof, showing that its original
had been registered, and pursuant to which the lost or
destroyed transfer certi cate of title was issued;
A document, on le in the registry of deeds, by which the property,
the description of which is given in said document, is mortgaged,
leased or encumbered, or an authenticated copy of said document
showing that its original had been registered; and
Any other document which, in the judgment of the court, is
su cient and proper basis for reconstituting the lost or destroyed
certi cate of title.
Reviewer
Republic v. Sps Sanchez
After hearing the parties, the trial court dismissed LRC Case No.
Q-96-8296 for lack of jurisdiction as all interested parties were not
actually noti ed of the petition as required under Section 13 in
relation to Section 12 of RA 26.
Guided by MWSS v. Sison, we had set aside so-called " nal"
reconstitution Orders for being void for non-compliance with
Section 13 of RA 26 where the Orders were challenged either
through a motion led in the trial court issuing the reconstitution
order or through a petition under Rule 47 of the Rules of Court led
with the Court of Appeals. Here, petitioner availed of the former
remedy.
Republic v. Lorenzo 2012
As correctly pointed out by petitioner, we had emphasized in
Republic v. Holazo that the term “any other document” in
paragraph (f) refers to reliable documents of the kind described in
the preceding enumerations and that the documents referred to in
Section 2(f) may be resorted to only in the absence of the preceding
documents in the list. Therefore, the party praying for the
reconstitution of a title must show that he had, in fact, sought to
secure such documents and failed to nd them before presentation
of “other documents” as evidence in substitution is allowed.
Furthermore, in a more recent case, this Court enumerated what
should be shown before an order for reconstitution can validly issue,
namely:
a) that the certi cate of title had been lost or destroyed;
b) that the documents presented by petitioner are su cient
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and proper to warrant reconstitution of the lost or
destroyed certi cate of title;
c) that the petitioner is the registered owner of the property or
had an interest therein;
d) that the certi cate of title was in force at the time it was lost
or destroyed; and
e) that the description, area and boundaries of the property are
substantially the same and those contained in the lost or
destroyed certi cate of title.
In the case at bar, the respondents were unable to discharge the
burden of proof prescribed by law and jurisprudence for the
reconstitution of lost or destroyed Torrens certi cate of title.
Quick Survey of Latest Jurisprudence
Bernas v. Estate of Yu Han Yat 2018 Caguioa, J
Action for quieting of title may or may not be a collateral attack on
certi cate of title.
Filipinas Eslon Manufacturing v. Heirs of Llanes 2019
Caguioa, J
An action for quieting of title is not a proscribed collateral attack on
a certi cate of title if its primary purpose is to nullify a certi cate of
title.
Heirs of Cullado v. Gutierrez 2019 En Banc Caguioa, J
In accion publiciana case, a rmative defenses (1) that plainti ’s
OCT was obtained by fraud and (2) of acquisitive prescription,
amounts to a collateral attack on OCT. RTC is without jurisdiction
to order reconveyance and e ectively nullify the OCT.
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Civil Law and Practical Exercises
Oño v. Lim 2010
An action or proceeding is deemed an attack on a title when its
objective is to nullify the title, thereby challenging the judgment
pursuant to which the title was decreed. The attack is direct when
the objective is to annul or set aside such judgment, or enjoin its
enforcement. On the other hand, the attack is indirect or collateral
when, in an action to obtain a di erent relief, an attack on the
judgment is nevertheless made as an incident thereof.
Heirs of Sumagang v. Aznar Enterprises 2019
A cross-claim is a direct attack.
Aquino v. Estate of Aguirre 2019
Petition for reconstitution not proper to cancel TCT since a
proscribed collateral attack. The proper remedy is R47 Annulment
of Judgment.
Pen Development v. Martinez Leyba, Inc 2017
Prescription as well as laches do not apply to registered land per §47
of PD 1529.
Heirs of Delfin v. NHA 2016
That land is alienable and disposable may be the subject of a judicial
admission.
Republic v. Tongson, Sr 2020
In order for CENRO and DENR certi cations to prove accretion,
the certifying o cer, the land surveyor, or any similarly competent
o cer of the said agency should have been presented in court to
provide the factual bases of their ndings.
Republic v. Heirs of Cabrera 2017 Caguioa, J
Reviewer
In reversion suit, the State must show that the land was inalienable at
the time it was decreed to the defendant.
Republic v. Heirs of Daquer 2018 En Banc
Homestead patent issued in 1936 nulli ed where holder unable to
show law or proclamation declaring such land to be alienable and
disposable. The fact that land was unclassi ed does not mean that it
is alienable and disposable.
Melendres v. Catambay 2018 Caguioa, J
Where petitioners claim that they have possessed the land for more
than 30 years, the land ipso facto becomes private. Thus they can le
action for reconveyance. CA erred in saying that reversion suit is the
only proper proceeding.
Republic v. Sps Alforte 2018
A legal easement of right-of-way exists in favor of the Government
over land that was originally a public land awarded by free patent
even if the land is subsequently sold to another.
Heirs of Mariano v. City of Naga 2018
City’s unregistered claim based on donation cannot give better right
of possession as against registered owner.
Jurado v. Sps Chai 2019
Persons dealing with administratively reconstituted titles should
conduct inquiry or investigation.
Princess Rachel Dev’t v. Hill View Marketing 2020 En Banc
Property developer guilty of substantial encroachment was a builder
in bad faith.
Onstott v. Upper Tagpos Neighborhood Association 2016
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for the 2022 Bar
Wife not an indispensable party if land is registered as “Husband,
married to Wife.”
Sps Anastacio v. Heirs of Coloma 2020 Caguioa, J
Where property shown to have been acquired during marriage, it
remains to be conjugal property even if registered as owned by
“Husband, married to Wife.” Hence sale by husband without wife’s
consent was nulli ed.
First Sarmiento v. PBCom 2018 En Banc
An action for annulment of a REM is incapable of pecuniary
estimation even if the realty had been foreclosed if the action was
led before the registration of the certi cate of sale.
Logarta v. Mangahis 2016
Adverse claim not proper to register a claim based on a contract to
sell.
Heirs of Ramirez v. Abon 2019 Caguioa, J
In a petition for issuance of a new owner’s duplicate certi cate of
title, notice to heirs of the registered owner is mandatory. Otherwise,
judgment is null and void.
PBCom v. RD of Benguet 2020 Caguioa, J
Registered owner of land not barred by res judicata from ling
second petition for issuance of new owner’s duplicate certi cate of
title. The reason is the indefeasibility of the Torrens Title.
IV Practical Exercises
Demand and authorization letters
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Civil Law and Practical Exercises Reviewer for the 2022 Bar

Simple Contracts A. Contract of Sale

Atty. Juan dela Cruz
Complaint
REPUBLIC OF THE PHILIPPINES )

A Demand and authorization letters [DATE] City/Municipality of ____________ ) S.S.

[BRANCH CLERK OF COURT] BILL OF SALE

[DATE]
Regional Trial Court KNOW ALL MEN BY THESE PRESENTS:
[NAME OF ADDRESSEE]
Branch [NUMBER], [VENUE] I, [NAME OF SELLER], Filipino, single, and resident of
[ADDRESS] [ADDRESS OF SELLER] for and in consideration of the amount
RE: [SUBJECT]
of [AMOUNT IN WORDS PESOS] (PhP xxx,xxx.xx), paid to me
RE: [SUBJECT]
today by [NAME OF BUYER], Filipino, single and resident of
To the Branch Clerk of Court: [ADDRESS OF BUYER] do hereby SELL, TRANSFER and
Dear [NAME], CONVEY absolutely and unconditionally unto said [NAME OF
I am [NAME OF CLIENT], [Plainti /Defendant] in BUYER] the following property:
We are writing on behalf of our client [NAME], in the matter of [Civil/Criminal] Case No. [NUMBER] pending before this
[SUBJECT]. Honorable Court. (Description of property)

Records disclose that [SUMMARY OF BASIC FACTS I am writing this letter to introduce my counsel, [FIRM] and to I own and have the right to sell and transfer the title and ownership
SUPPORTING YOUR CLIENT’S DEMAND/CAUSE OF authorize its lawyers and apprentices, including, but not limited to, of the above–described property; I will defend the same against the
ACTION]. [NAMES OF LAWYERS] to obtain copies of records pertaining to claims of any and all persons whatsoever.

We wish to inform you that your acts constitute violation of the aforementioned case on my behalf. IN WITNESS WHEREOF, I have signed this instrument this __th
[APPLICABLE LAW OR CONTRACTUAL STIPULATION]. For any clari cations or concerns, you may reach me through day of [MONTH, YEAR] at [PLACE OF SIGNING].

Accordingly, a demand is hereby made upon you to settle the [NUMBER/E-MAIL ADDRESS]. (sgd).
amount of [AMOUNT] within ____ days from the receipt of this Thank you for your kind consideration. [NAME OF SELLER]
letter. Otherwise, we will be constrained to nd recourse in the
SIGNED IN THE PRESENCE OF:
courts of law and le the necessary legal action against you to protect
the interest of our client. Yours, _________________ _________________
We trust that you will give this matter your urgent attention. Pedro Santos

[PLUS ACKNOWLEDGMENT]
Yours,
B Simple Contracts Unilateral Deed of Sale of Registered Land

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Civil Law and Practical Exercises
REPUBLIC OF THE PHILIPPINES )
City/Municipality of ____________ ) S.S.
DEED OF ABSOLUTE SALE
KNOW ALL MEN BY THESE PRESENTS:
I, [NAME OF SELLER], Filipino, single/married to [SPOUSE, IF
APPLICABLE], and resident of [ADDRESS OF SELLER] for and
in consideration of the amount of [AMOUNT IN WORDS
PESOS] (PhP xxx,xxx.xx), paid to me today by [NAME OF
BUYER], Filipino, single and resident of [ADDRESS OF BUYER]
do hereby SELL, TRANSFER and CONVEY absolutely and
unconditionally unto said [NAME OF BUYER] that certain
parcel(s) of land, together with the buildings and improvements
thereon situated in the [CITY/MUNICIPALITY OF ____], free
from all liens and encumbrances whatsoever and more particularly
described as follows:
(Technical Description of property as indicated in the title)
of which I am the registered owner in fee simple, my title thereto
being evidenced by [TRANSFER/ORIGINAL CERTIFICATE
TITLE NO.__________], issued by the Register of Deeds of
[CITY/MUNICIPALITY].
IN WITNESS WHEREOF, I have signed this instrument this __th
day of [MONTH, YEAR] at [PLACE OF SIGNING]
(sgd).
[NAME OF SELLER]
[If Seller is married, include spousal consent as follows:]
With my consent:
(sgd.)
Reviewer
[NAME OF SPOUSE OF SELLER]
SIGNED IN THE PRESENCE OF:
_________________ _________________
[PLUS ACKNOWLEDGMENT]
Unilateral Deed of Sale of Unregistered Land
REPUBLIC OF THE PHILIPPINES )
City/Municipality of ____________ ) S.S.
DEED OF ABSOLUTE SALE
KNOW ALL MEN BY THESE PRESENTS:
I, [NAME OF SELLER], Filipino, single/married to [SPOUSE, IF
APPLICABLE], and resident of [ADDRESS OF SELLER] for and
in consideration of the amount of [AMOUNT IN WORDS
PESOS] (PhP xxx,xxx.xx), paid to me today by [NAME OF
BUYER], Filipino, single and resident of [ADDRESS OF BUYER]
do hereby SELL, TRANSFER and CONVEY absolutely and
unconditionally unto said [NAME OF BUYER] that certain
parcel(s) of land, together with the buildings and improvements
thereon situated in the [CITY/MUNICIPALITY OF ____], free
from all liens and encumbrances whatsoever and more particularly
described as follows:
(Description: state the nature of each piece of land and its
improvements, situations and boundaries, area in square meters, e.g.
“Bounded on the N. by ____________; on the E. by
___________; on the S. by ____________; and on the W. by
____________; with an area of ________ square meters, more or
less.”)
By RGL
for the 2022 Bar
THAT the SELLER does hereby declare that the boundaries of the
foregoing land are visible by means of [MONUMENTS, CREEKS,
TREES ETC.] that the permanent improvements existing thereon
consist of [LIST VARIOUS IMPROVEMENTS, IF NONE,
STATE SO.]; that the land is assessed for the current year at (PhP
xxx.xx) as per Tax Declaration No. _________, and that the
property is in present possession of the SELLER.
The above described real estate, not having been registered under
Act No. 496 nor under the Spanish Mortgage Law, I have agreed to
register this instrument under the provisions of Sec. 194 of the
Revised Administrative Code, as amended by Sec. 113 of P.D 1159.
IN WITNESS WHEREOF, I have signed this instrument this __th
day of [MONTH, YEAR] at [PLACE OF SIGNING].
(sgd).
[NAME OF SELLER]
[If Vendor is married, include spousal consent as follows:]
(sgd.)
[NAME OF SPOUSE OF SELLER]
SIGNED IN THE PRESENCE OF:
_________________ _________________
[PLUS ACKNOWLEDGMENT]
Bilateral Deed of Sale of Registered Land
REPUBLIC OF THE PHILIPPINES )
City/Municipality of ____________ ) S.S.
DEED OF ABSOLUTE SALE
243 of 245
Civil Law and Practical Exercises Reviewer for the 2022 Bar

[PROPERTY] located at [ADDRESS OF PROPERTY TO

KNOW ALL MEN BY THESE PRESENTS: (sgd.) (sgd.)
This DEED OF ABSOLUTE SALE is made, executed and entered [NAME OF BUYER] [NAME OF SELLER]
into by:
BUYER SELLER
[NAME OF SELLER], Filipino, single/married to [SPOUSE, IF
[If Buyer and/or Seller are married, include spousal consent as
APPLICABLE], and resident of [ADDRESS OF SELLER]
follows:]
(SELLER)
With my consent:
-and-
(sgd.) (sgd.)
[NAME OF BUYER], Filipino, single/married to [SPOUSE, IF
APPLICABLE] and resident of [ADDRESS OF BUYER] [NAME OF SPOUSE OF BUYER] [NAME OF SPOUSE OF
(BUYER) SELLER]
WITNESSETH SIGNED IN THE PRESENCE OF:
That the SELLER is the registered owner in fee simple of a parcel of _________________ _________________
land with improvements situated in the [CITY/MUNICIPALITY [PLUS ACKNOWLEDGMENT FOR TWO-PARTY
OF ____] with [TRANSFER/ORIGINAL CERTIFICATE INSTRUMENT]
TITLE NO.__________], issued by the Register of Deeds of
[CITY/MUNICIPALITY] and more particularly described as B. Contract of Lease
follows:
CONTRACT OF LEASE
(Technical Description of property as indicated in the title)
KNOW ALL MEN BY THESE PRESENTS:
That the SELLER for and in consideration of the amount of
[AMOUNT IN WORDS PESOS] (PhP xxx,xxx.xx), does hereby This Agreement made and entered into at [PLACE] this ____ day
SELL, TRANSFER and CONVEY absolutely and unconditionally of [MONTH, YEAR] by and between [NAME OF LESSOR], of
legal age, single/married to [SPOUSE, IF APPLICABLE],
unto the BUYER that certain parcel(s) of land, together with the
buildings and improvements thereon free from all liens and (LESSOR) and resident of [ADDRESS], and [NAME OF
encumbrances whatsoever. LESSEE], of legal age, single and resident of [ADDRESS]
(LESSEE), WITNESSETH that:
That it is hereby mutually agreed that the BUYER shall bear all
expenses for the execution and registration of this deed of sale. 1. In consideration of a monthly rental of [AMOUNT IN
WORDS PESOS] (PhP xxx,xxx.xx) and the covenants made
IN WITNESS WHEREOF, the parties have signed this contract on below, the LESSOR hereby LEASES to the LESSEE a(n)
this __th day of [MONTH, YEAR] at [PLACE OF SIGNING].
BE LEASED] covered by [TCT/TAX DEC. NO.] for a
period of TWELVE (12) MONTHS from signing of this
contract.
2. The LESSEE covenants, as follows:
2.1. To pay the rentals on or before the fth day of each
month, without need of demand at the residence of
LESSOR;
2.2. To keep the premises in good and habitable condition,
making the necessary repairs inside and outside the
house;
2.3. Not to make major alterations and improvements
without the written consent of the LESSOR and in
the event of such unauthorized major alterations and
improvements, surrendering ownership over such
improvements and alterations to the LESSOR upon
expiration of this lease;
IN WITNESS WHEREOF, the parties have signed this contract on
the date and the place rst mentioned.
(sgd.) (sgd.)
[NAME OF LESSOR] [NAME OF LESSEE]
LESSOR LESSEE
[If Lessor is married, include spousal consent as follows:] With my
consent:
(sgd.)
[NAME OF SPOUSE OF LESSOR]
SIGNED IN THE PRESENCE OF:

By RGL 244 of 245

Civil Law and Practical Exercises Reviewer for the 2022 Bar

installment basis monthly. These amounts now total Nine

_________________ _________________ [NAME OF COUNSEL]
Hundred Thousand Pesos (P900,000.00).
[PLUS ACKNOWLEDGMENT FOR TWO-PARTY Attorney for Plainti
3. Despite repeated demands, both oral and written,
INSTRUMENT [ADDRESS]
defendant failed or has refused to pay any amount to
plainti as no installment payment has even been made. A Roll No. [1234]
C Complaint copy each of plainti ’s two (2) demand letters is attached as
PTR No. [1234] / [Place] / [Date]
ANNEX A and B.
REPUBLIC OF THE PHILIPPINES IBP No. [1234] / [Place] / [Date]
4. Resort to the Barangay Conciliation process proved
REGIONAL TRIAL COURT
fruitless as defendant failed to appear, despite notice on MCLE Compliance No. [1234]
NATIONAL CAPITAL REGION
BRANCH [#], [VENUE] him to appear. Thus, a Certi cation to File Action, a copy
of which is attached as ANNEX C, was issued by the
Barangay Chairman. NOTICE OF HEARING
[PLAINTIFF]
5. Defendant’s obligation is due and demandable and plainti The undersigned will submit the foregoing Motion to Declare in
Plainti , Civil Case No.: 123984
is entitled to the payment of the entire amount of Nine Default for the consideration and approval of the Honorable Court
-versus- on [DATE] at [TIME].
Hundred Thousand Pesos (P900,000.00) plus legal interest.
[DEFENDANT], For: [NATURE OF ACTION]
6. By reason of defendant’s unreasonable failure or refusal to
Defendant. pay his due and demandable obligation, plainti was forced
x------------------------------------------x to engage the services of counsel to vindicate his rights
. thereby committing himself to pay legal expenses
amounting to Fifty Thousand Pesos (P50,000.00).
COMPLAINT PRAYER
PLAINTIFF, by counsel, respectfully states that: WHEREFORE, plainti respectfully prays for judgment in his
1. Plainti is a Filipino, of legal age, and resident of 6750 favor through a Decision directing defendant to pay him NINE
Forbes Park, Makati City; defendant is also a Filipino, of HUNDRED THOUSAND PESOS (P900,000.00), with legal
legal age and resident of 6752, Forbes Park, Makati City, interest, as ACTUAL DAMAGES and FIFTY THOUSAND
where he may be served with summons and other processes. PESOS (P50,000.00) as Attorney’s Fees.

2. Sometime in January 2005 and over a period of six (6) Other just and equitable reliefs are also prayed for.
months, defendant borrowed certain amounts from [VENUE], [DATE].
plainti . Defendant promised to pay these amounts on an

By RGL 245 of 245