INTRODUCTION TO LAW
1. Law in its strict Legal Sense
LAW
• Any rule of action or any system of uniformity
• Law determines not only the activities of men as
rational beings but also the movements or
motions of all objects of creation whether
animate (living) or inanimate (non-living)
(state) Law may be understood in two concepts:
In its specific sense,
• “Rule of conduct, just and obligatory,
promulgated by legitimate authority and of
common observance and benefit” by Sanchez
Roman
In its general sense,
• “The mass of obligatory rules established for the
purpose of governing the relations of persons in
society”
DIVISION AND CHARACTERISTICS OF
LAW
4 CHARACTERISTICS OF LAW
1. Rule of Conduct
● System of Action
● Tells us what shall be done and what shall
not to be done
● Takes cognizance of external acts only
2. Obligatory
● Mandatory / Compulsory
● Positive command imposing a duty to obey
which involves sanctions / consequences
3. Promulgated by legitimate authority
● Laws called “statutes” are enacted by
Legislative Body / Congress
Statute - formal written enactment of a
legislative authority
4. Common observance and benefit
● “The law applies to all or none at all”
● Intended by man to serve man
2 DIVISION OF LAW / SENSES OF LAW
● State law because it is created and enforced
by the state
Also called as Municipal Law, Positive Law,
Civil Law, Imperative Law, State Law (civil
code)
2. Law in its Non-Legal Sense
● Not created and promulgated by the state
Divine Law (religion)
• Law of religion and faith which
concerns itself with the concept of
sin and salvation
• Source - promulgated by God
• Totally dependent on one’s belief
Natural Law (nature)
• Based on conscience
• Divine inspiration to man of the
sense of justice, fairness and
righteousness
• Internal dictates of reason alone /
Understanding good or bad
• Place in state law – reasonable basis
of state law
Moral Law (ethics)
• Totally of the norm of good and right
conduct growing out of the collective
sense of right and wrong of every
community
• Binding force - Not absolute
Example: polygamy is
immoral in Philippines while
it is allowed in other country
• Place in state law – Influences or
shape state law
Physical Law (physical science, all living
things)
• Law of physical science, order or
regularity in nature
• Called law only by analogy
CLASSIFICATIONS OF LAW
As to its purpose
1. Substantive Law
● Create, define, regulate the right and
duties of the parties which may be either
public or private in character
● What the law really provided / rule of
conduct
2. Adjective / Remedial / Procedural
Law
● Prescribes the cure, remedy, manner or
procedure by which rights may be
enforced or the violation may be
addressed
● Governed by the Rules of Court
promulgated by the Supreme Court and
by special laws
Rights and duties are useless unless they can be
enforced. It is not enough that the state regulates
the rights and duties of all who are subject to the
law; it must also provide legal remedies by which
substantive law may be administered.
As to its subject matter
1. Public law
● It affects everyone
● Governs the relations of an individual
with the state (state and people)
Example: Criminal Law – not only
violates the right of individual victim
but also disturbs the peace and order
of the state
2. Private law
● It affects some only
● Regulates relationship between citizens
Example: OBLICON - it only serves
private ends
• The state is also involved in private
law; it enforces private law but
simply as an arbiter and not as a
party
Arbiter - has the legal authority to decide
disputes.
SOURCES OF LAW
1. Primary Source
Constitution
● Supreme / Fundamental / Highest law of
the land
● Promulgated by the people themselves
● It is the law to which all other laws
enacted by the legislature must conform
● This means that laws which are declared
by the courts to be inconsistent with the
Constitution shall be null and void
● Provides and divides the power of the
government among several departments
Legislation
● Law created by the legislative branch
● Consist in the declaration of legal rules
by a competent authority
● Acts passed by the legislature are called
Enacted Law or Statute Law
● Preponderance source of law and
declaration of rules by competent
authority which is the legislature
● Ordinances are enacted by LGU (local
government unit)
Administrative or Executive Orders,
Rules and Regulation
● Issued by administrative officials under
legislative authority
● Intended to clarify or explain the law and
carry into effect its general provisions
● Valid only when they are not contrary to
laws and constitution
Judicial Decisions / Jurisprudence
● Decision by the supreme court (Highest
Court of the Land or Court of Last
Resort) in a particular case will become
part of legal system of the Philippines
(Article 8, Civil Code)
Effect of the decision: they become the
laws of the land called Doctrine of
Precedence / Stare Decisis
The supreme court, however, may reverse or
modify any of its previous rulings. Until then, the
decisions of the Supreme Court applying or
interpreting the laws or the Constitution are
 “laws” by their own right because they declare
what the laws say or mean.
Unlike rulings of the lower courts, which bind the
parties to specific cases alone, its judgement is
applied to all.
Customs
● Habits and practices which through long
and uninterrupted usage have become
acknowledged and approved by society
as binding rules of conduct
● Has force of law when recognized and
enforced by the state
● Must be proved as a fact according to the
rules of evidences (Article 12, Civil Code)
● May be applied by the courts in the
absence of law or statute exactly
applicable to the point in controversy
● Must not be contrary to law, public order,
or public policy
2. Secondary Source
Supplementary or they are resorted only by the
boards in the absence of all primary sources of law
Other Sources
● Decision of Foreign Courts
● Principle of Justice and Equity
● Religion
3 MAIN BRANCHES OF THE
GOVERNMENT
1. Legislative (Article 6 of 1987 Constitution)
● They promulgate / create / make the law
● Composed of the congress which is
subdivided into Bicameral (2 chambers)
House of Senate (24)
House of Representatives (not more than
250)
2. Executive (Article 7 of 1987 Constitution)
● They execute / implement / enforce the law
President of the Philippines
● Members of the cabinet
Vice-President of the Philippines
Local Chief Executives
● Mayors
● Vice Mayors
● Enforced by DILG, DOH, LGU etc.
● Veto is the power to object a bill
● If the president didn’t sign or reject
the bill after 30 days, it will be
considered as a state law
3. Judiciary / Judicial (Article 8 of 1987
Constitution)
● Last bastion of democracy
● Interpretation of the law
● Supreme court and other lower courts
ORGANIZATION OF COURTS
Under the Constitution, the judicial power or
the power to decide actual cases and controversies
involving the interpretation and application of laws
is “vested in one Supreme Court and in such lower
courts as may be established by laws”.
1. Regular Courts
• (a) Court of Appeals, (b) Regional Trial
Courts, (Municipal Trial Courts) are
considered courts of general or superior
jurisdiction.
2. Special Courts
• (a) Sandiganbayan, a special anti-graft
court, (b) Court of Tax Appeals, a special
tax court created by law.
3. Quasi-judicial Agencies
• Administrative bodies under the
executive branch performing quasi-
judicial functions like the National Labor
Relations Commission, Securities and
Exchange Commission, etc. do not form
part of the integrated judicial system.
• Involve the settlement or adjudication of
controversies or disputes.
JUDICIAL SYSTEM IN THE PHILIPPINES
The Highest Court
Supreme Court of the Philippines
Supreme Court
● The Supreme Court is the Highest Court
in the Philippines. There is only one
Supreme Court composed of one Chief
Justice and fourteen Associate Justices
● Appointed by the president
● It is the final arbiter of any and all judicial
issues
● If all 15 decided, it is called En Banc - only
for special cases
● Or may be divided into divisions of three,
five or seven members
Have contempt power - power to punish for
contempt (hindi pagsunod)
Lower Courts
Appellate and Special Courts
Court of Appeals
● Composed of one Presiding Justice and
sixty-eight Associate Justices is vested
with jurisdiction over appeals from the
decisions of the Regional Trial Courts
and certain quasi-judicial agencies,
boards or commissions
● Exercise appellate jurisdiction on all
cases not falling within the original and
exclusive jurisdiction of the Supreme
Court
Court of Tax Appeals
● A special court, composed of one
Presiding Judge and two Associate
Judges, is vested with the exclusive
appellate jurisdiction over appeals from
the decisions of the Commissioner of
Internal Revenue and the Commissioner
of Customs on certain specific issues
3. Sandiganbayan
● A special court, composed of one
Presiding Justice and eight Associate
Justices, has exclusive jurisdiction over
violations of the Anti-Graft and Corrupt
Practices Act [Republic Act No. 3019], the
Unexplained Wealth Act [Republic Act No.
1379] and other crimes or felonies
committed by public officials and
employees in relation to their office,
including those employees in
government-owned or controlled
corporations
Second Level Courts
Regional Trial Courts
● Established among the thirteen regions
in the Philippines consisting of Regions I
to XII and the National Capital Region
(NCR). There are as many Regional Trial
Courts in each region as the law
mandates
First-Level Courts
Metropolitan Trial Courts (MeTc) and
Municipal Trial Courts in Cities (MTCC)
● Municipal Trial Courts in the towns and
cities in the Metropolitan Manila area, as
distinguished from the other political
subdivisions in the Philippines, are
referred to as Metropolitan Trial Courts
● In cities outside Metropolitan Manila, the
equivalent of the Municipal Trial Courts is
referred to as Municipal Trial Courts in
Cities
Municipal Trial Courts (MTC) and Municipal
Circuit Trial Courts (MCTC)
● Every municipality in the Philippines has
its own Municipal Trial Court. It is
referred to as such if it covers only one
municipality; otherwise, it is called
Municipal Circuit Trial Court if it covers
two or more municipalities
Section 2, Article III of the Constitution (Bill of
rights)
The right of the people to be secure in their persons,
houses, papers, and effects against unreasonable
searches and seizures of whatever nature and for
any purpose shall be inviolable, and no search
warrant or warrant of arrest shall issue except
upon probable cause to be determined personally
by the judge after examination under oath or
affirmation of the complainant and the witnesses he
may produce, and particularly describing the place
to be searched and the persons or things to be
seize.

INTRODUCTION TO LAW ON
OBLIGATIONS AND
CONTRACTS
DEFINITION
● Private / Substantive Law
● Body of rules which deals with the nature
and sources of obligations and their rights
and duties arising from agreements and the
particular contracts

Book IV of the Civil Code deals with obligations and

contracts

● Civil Code of the Philippines (Title)

● Republic Act 386 (Citation)
● Approved on June 18, 1949
● August 30, 1950 (Date of Effectivity)
● Divided into four (4) books

Sources of the Civil Code

(a) The Civil Code of Spain which took effect in the

Philippines on December 7, 1889
(b) The Philippine Constitution of 1935
(c) Statutes or Laws (Philippine, American, European)
(d) Rules of Court (local and foreign)
(e) Decisions of local tribunals (particularly the
Supreme Court)
(f) Decisions of foreign tribunals
(g) Customs and traditions of our people
(h) General principles of law and equity
(i) Ideas from the Code Commission itself
EFFECT AND APPLICATION OF LAWS
REPUBLIC ACT NO. 386
AN ACT TO ORDAIN AND INSTITUTE THE CIVIL
CODE OF THE PHILIPPINES
PRELIMINARY TITLE
CHAPTER 1
Effect and Application of Laws
Article 1 to 18
ARTICLE 1. This Act shall be known as the “Civil
Code of the Philippines.”
ARTICLE 2. Laws shall take effect after fifteen
days following the completion of their
publication either in the Official Gazette or in a
newspaper of general circulation in the
Philippines, unless it is otherwise provided.
Scope of the Article on Effectivity of Laws
This Article provides for the effectivity of two kinds of law,
namely:
(a) AN ORDINARY LAW
(b) THE CIVIL CODE
Tañada v. Tuvera
• The Supreme Court cannot rule upon the wisdom of
a law or to repeal or modify it if it finds it impractical.
• The task of the Supreme Court is merely to interpret
and apply the law as conceived and approved by the
political departments of the government in
accordance with prescribed procedure.
• The publication must be in full or it is no publication
at all, since its purpose is to inform the public of the
contents of the laws.
Effectivity Date of an Ordinary Law
An ordinary law takes effect:
(a) On the date it is expressly provided to take effect.
(b) If no such date is made, then after 15 days following
the completion of its publication in the Official Gazette or
in a newspaper of general circulation.
ARTICLE 3. Ignorance of the law excuses no one
from compliance therewith.
Ignorancia Legis Neminem Excusat
Conclusive presumption of knowledge of law
(1) If laws will not be binding until they are actually
known, then social life will be impossible, because most
laws cannot be enforced due to it being unknown to many;
(2) Absurd to absolve those who do not know the law and
increase the obligations of those who know it;
(3) In our conscience, we carry norms of right and wrong,
and a sense of duty
(4) Evasion of law and administration of justice would be
defeated if persons could successfully plead ignorance
of the law to escape legal consequences.
The rule, therefore, is dictated not only by expediency
(convenience) but also by necessity.
ARTICLE 4. Laws shall have no retroactive effect,
unless the contrary is provided.
Retroactive - it has effect from a date in the past before
it was approved
If the rule was that laws were retroactive, grave injustice
would occur, for these laws would punish individuals for
violations of laws not yet enacted.
When a doctrine laid down by the Supreme Court is
overruled and a different view adopted, the new doctrine
should be applied prospectively, and not apply to parties
relying on the old doctrine and acting on the faith thereof.
Exceptions to the Prospective Effects of Laws
(1) If the laws themselves provide for retroactivity, but in
no case must an ex post facto law be passed.
a. An ex post facto law is one that makes criminal
and punishable an act done before the passing of
the law and which was innocent when done.
(2) If the laws are remedial in nature.
(3) If the statute is penal in nature, provided:
(4) If the laws are of an emergency nature and are
authorized by the police power of the government.
(5) If the law is curative
(6) If a substantive right be declared for the first time,
unless vested rights are impaired

ARTICLE 5. Acts executed against the provisions
of mandatory or prohibitory laws shall be void,
except when the law itself authorizes their
validity.
Mandatory or Prohibitory Laws
• Kinds of mandatory legislation (like penal and some
contractual laws):
o Positive - when something must be done
o Negative or prohibitory - when something
should not be done
Exceptions
Although in general, violations of mandatory or
prohibitory laws result in void acts or contracts, in some
instances, the law authorizes their validity.
• When the law makes the act not void but merely
voidable (valid, unless annulled) at the instance of
the victim
• When the law makes the act valid, but subjects the
wrongdoer to criminal responsibility
• When the law makes the act itself void, but
recognizes some legal effects flowing therefrom
• When the law itself makes certain acts valid although
generally they would have been void
ARTICLE 6. Rights may be waived, unless the
waiver is contrary to law, public order, public
policy, morals, or good customs, or prejudicial to
a third person with a right recognized by law.
Waiver of rights - act of voluntarily giving up a certain
legal right.
Definitions
(1) RIGHTS
a. The power or privilege given to one person and as a
rule demandable of another
b. In still another sense, a right denotes an interest or
title in an object or property
c. Rights involve two subjects: the active subject (the
person entitled) and the passive subject (the person
obliged to suffer the enforcement of the right)
d. Rights may be: 1) REAL RIGHTS (jus in re, jus in rem) —
enforceable against the whole world (absolute rights); 2)
PERSONAL RIGHTS (jus in personam, jus ad rem) —
enforceable against a particular individual (relative
rights)
(2) WAIVER
a. the intentional or voluntary relinquishment of a known
right, or such conduct as warrants an inference of the
relinquishment of such right
b. Thus, a waiver may be express or implied
Examples of Rights that Cannot be Renounced
(1) Natural rights, such as the right to life
a. Therefore, if a person requests another to kill
him, the killer would still be criminally liable
(2) Alleged rights which really do not yet exist
a. Future inheritance cannot be renounced since
no right is vested till the death of the decedent.
(3) Those the renunciation of which would infringe upon
public policy
a. The right to be heard in court cannot be
renounced in advance
(4) When the waiver is prejudicial to a third person with
a right recognized by law
Examples of Rights that may be Renounced
(1) Support in arrears
(2) The right granted to prepare at least two days before
trial is waivable, expressly or impliedly. It can be implied
from the failure to ask for sufficient time to prepare for
trial
(3) The right of the accused in a criminal case to have a
preliminary investigation may be waived
ARTICLE 7. Laws are repealed only by
subsequent ones, and their violation or non-
observance shall not be excused by disuse, or
custom or practice to the contrary.
When the courts declare a law to be inconsistent
with the Constitution, the former shall be void
and the latter shall govern.
Administrative or executive acts, orders and
regulations shall be valid only when they are not
contrary to the laws or the Constitution.
Repeal – revoke, cancel
Laws may lapse (i.e., end by itself in view of the expiration
of the period during which it was supposed to be
effective) without the necessity of any repeal.
How Laws Are Repealed
(1) Expressly
(2) Impliedly (insofar as there are inconsistencies
between a prior and a subsequent law)
a. If both statutes can stand together, there is no
repeal
 Rule for General and Special Laws
(1) If the general law was enacted prior to the special law,
the latter is considered the exception to the general law.
(2) If the general law was enacted after the special law,
the special law remains unless;
a. There is an express declaration to the contrary
b. Or there is a clear, necessary and
unreconcilable conflict.
c. Or unless the subsequent general law covers
the whole subject and is clearly intended to
replace the special law on the matter
General legislation must give way to special legislation
on the same subject (lex specialis derogat generali), and
where two statutes are of equal theoretical application to
a particular case, the one specially designed therefore
should prevail
An act passed later but going into effect earlier will
prevail over a statute passed earlier and going into effect
later. This is because the later enactment expresses the
later intent
Effect if the Repealing Law is Itself Repealed
(1) When a law which expressly repeals a prior law is
itself repealed, the law first repealed shall not be thereby
revived, unless expressly so provided
(2) When a law which repeals a prior law, not expressly
but by implication, is itself repealed, the repeal of the
repealing law revives the prior law, unless the language
of the repealing statute provides otherwise
ARTICLE 8. Judicial decisions applying or
interpreting the laws or the Constitution shall
form part of the legal system of the Philippines.
Are Judicial Decisions Laws?
NO. If this were so, the courts would be allowed to
legislate contrary to the principle of separation of
powers. Judicial decisions are evidence of what the laws
mean, and this is why they are part of the legal system of
the Philippines. The interpretation placed upon the
written law by a competent court has the force of law.
However, a reversal of that interpretation cannot be given
a retroactive effect to the prejudice of parties who had
relied on the first interpretation
Only the decisions of the Supreme Court, and unreversed
decisions of the Court of Appeals on cases of first
impression, establish jurisprudence or doctrines in the
Philippines. Decisions of subordinate courts are only
persuasive in nature, and can have no mandatory effect.
Doctrine of Stare Decisis
Or “adherence to precedents,” states that once a case has
been decided one way, then another case, involving
exactly the same point at issue, should be decided in the
same manner. The principle of stare decisis does not and
should not apply when there is a conflict between the
precedent and the law.
Obiter Dicta
Obiter dicta (singular “dictum”) are opinions not
necessary to the determination of a case. They are not
binding, and cannot have the force of judicial precedents.
It has been said that an obiter dictum is an opinion
“uttered by the way, not upon the point of question
pending.” Upon the other hand, a dissenting opinion
affirms or overrules no claim, right or obligation. And
neither disposes of nor awards anything. It merely
expresses the view of the dissenter.
How Judicial Decisions May Be Abrogated (Repealed)
(1) By a contrary ruling by the Supreme Court itself.
(2) By corrective legislative acts of Congress.
When Final Judgments May Be Changed
(1) Firstly, a judgment void for lack of jurisdiction over the
subject matter can be assailed at any time either directly
or collaterally.
(2) Secondly, when after judgment has been rendered
and the latter has become final, facts and circumstances
transpire which render its execution impossible or
unjust, the interested party may ask the court to modify
or alter the judgment to harmonize the same with justice
and with the facts
ARTICLE 9. No judge or court shall decline to
render judgment by reason of the silence,
obscurity or insufficiency of the laws.
Duty of a Judge if the Law is Silent
A judge must still give a decision, whether he knows what
law to apply or not.
Does Article 9 Apply to Criminal Cases?
In a way, yes. True, an offense is not a crime unless
prohibited and punished by the law applying the rule
(there is no crime and there is no penalty in the absence
of law), nevertheless, if somebody is accused of a non -
existent crime, the judge must DISMISS the case. This, in
reality, is equivalent to a judicial acquittal.
ARTICLE 10. In case of doubt in the interpretation
or application of laws, it is presumed that the
lawmaking body intended right and justice to
prevail.
Dura Lex Sed Lex
“The law may be harsh, but it is still the law.” Hence, the
first duty of the judge is to apply the law — whether it be
wise or not, whether just or unjust — provided that the
law is clear, and there is no doubt. What the law grants,
the court cannot deny.
In Case of Doubt
Judicial conclusions inconsistent with the spirit of a law
must be avoided. Moreover, it has been wisely stated that
“when the reason for the law ceases, the law
automatically ceases to be one.” Cessante ratione cessat
ipsa lex.
Some Rules of Statutory Construction
(1) When a law has been clearly worded, there is no room
for interpretation. VERBA LEGIS
(2) If there are two possible interpretations or
constructions of a law, that which will achieve the ends
desired by Congress should be adopted.
ARTICLE 11. Customs which are contrary to law,
public order or public policy shall not be
countenanced.
A custom is a rule of human action (conduct) established
by repeated acts, and uniformly observed or practiced as
a rule of society, thru the implicit approval of the
lawmakers, and which is therefore generally obligatory
and legally binding.
Requisites Before the Courts can Consider Customs
(1) A custom must be proved as a fact, according to the
rules of evidence; otherwise, the custom cannot be
considered as a source of right – thus, there is no judicial
notice of custom.
(2) The custom must not be contrary to law (contra
legem), public order, or public policy
(3) There must be a number of repeated acts.
(4) The repeated acts must have been uniformly
performed
(5) There must be a juridical intention (convictio juris seu
necessitatis) to make a rule of social conduct
a. i.e., there must be a conviction in the
community that it is the proper way of acting, and
that, therefore, a person who disregards the
custom in fact also disregards the law.
(6) There must be a sufficient lapse of time — this by itself
is not a requisite of custom, but it gives evidence of the
fact that indeed it exists and is being duly observed
ARTICLE 12. A custom must be proved as a fact,
according to the rules of evidence.
• There is a presumption that a person acts according
to the custom of the place.
• A custom is presumed not to exist when those who
should know, do not know of its existence
Kinds of Customs
A general custom is that of a country; a “custom of the
place” is one where an act transpires.
• A general custom if in conflict with the local
custom yields to the latter.
• However, in the absence of proof to the contrary,
a general custom is presumed to be also the
“custom of the place.’’
A custom may be propter legem (in accordance with law)
or contra legem (against the law).
• Customs extra legem are those which may
constitute sources of supplementary law, in
default of specific legislation on the matter.
ARTICLE 13. When the laws speak of years,
months, days or nights, it shall be understood
that years are of three hundred sixty-five days
each; months, of thirty days; days, of twenty-four
hours; and nights from sunset to sunrise.
If months are designated by their name, they
shall be computed by the number of days which
they respectively have.
In computing a period, the first day shall be
excluded, and the last day included.
The civil or solar or calendar month is that which agrees
with the Gregorian calendar
(a) 1 year = 365 days
(b) 1 month = 30 days
(c) 1 day = 24 hours
(d) One week = Seven successive days
(e) Night = Sunset to Sunrise
In computing a period, the first day shall be excluded, and
the last day included. (Just add X to the first-mentioned
date)
ARTICLE 14. Penal laws and those of public
security and safety shall be obligatory upon all
who live or sojourn in Philippine territory,
subject to the principles of public international
law and to treaty stipulations.
Theories of Territoriality and Generality
(Doctrine in criminal law) Any offense committed within
our territory offends the state. Therefore, any person,
whether citizen or alien, can be punished for committing
a crime here.
• it means that even aliens, male or female come
under our territorial jurisdiction
Exceptions
(1) The principles of public international law
(2) The presence of treaty stipulations
The status of a person in civil law includes:
(a) personal qualities and relations, more or less
permanent in nature, and
(b) not ordinarily terminable at his own will
ARTICLE 15. Laws relating to family rights and
duties, or to the status, condition and legal
capacity of persons are binding upon citizens of
the Philippines, even though living abroad.
Applicability
Article 15 which is a rule of private international law
stresses the principle of nationality
The capacity to enter into an ordinary contract is
governed by the national law of the person, and not by the
law of the place where the contract was entered into.
(Lex loci celebrationis)
Article 15 of the Code of Commerce says that “foreigners
and companies created abroad may engage in commerce
in the Philippines subject to the laws of their country with
respect to their capacity to contract.”
Capacity to Enter into Other Relations
(a) Capacity to acquire, encumber, assign, donate or sell
property depends on the law of the place where the
property is situated (lex situs or lex rei sitae).
(b) Capacity to inherit depends not on the national law of
the heir, but on the national law of the decedent.
(c) Capacity to get married depends not on the national
law of the parties, but on the law of the place where the
marriage was entered into (lex loci celebrationis or locus
regit actum), subject to certain exceptions.
ARTICLE 16. Real property as well as personal
property is subject to the law of the country
where it is situated.
However, intestate and testamentary
successions, both with respect to the order of
succession and to the amount of successional
rights and to the intrinsic validity of
testamentary provisions, shall be regulated by
the national law of the person whose succession
is under consideration, whatever may be the
nature of the property and regardless of the
country wherein said property may be found.
Lex Rei Sitae or Lex Situs
(Law of the place where the property is situated)
Real or immovable property is exclusively subject to the
laws of the country because it is part of the country and
so closely connected to it that all rights over them have
their natural center of gravity there.
Exceptions to the Lex Situs Rule
(Article 16, par. 2) Successional rights. The following
matters are governed by the national law of the
deceased.
To eliminate the possibility of “no jurisdiction,’’ it is clear
that Article 16, par. 2 can apply only to properties located
in the Philippines.
Intestate and testamentary successions - If no will was
left by the deceased, then his heirs shall inherit by
operation of law.
The Renvoi Problem
(Referring back); a problem when there is a doubt as to
whether a reference in our law to a foreign law:
(a) is a reference to the INTERNAL law of said foreign law;
or
(b) is a reference to the WHOLE of the foreign law,
including its CONFLICTS RULES.
In the latter case, if one state involved follows the
ARTICLE 18. In matters which are governed by
nationality theory, and the other, the domiciliary theory,
there is a possibility that the problem may be referred the Code of Commerce and special laws, their
back to the law of the first state. deficiency shall be supplied by the provisions of
this Code.
ARTICLE 17. The forms and solemnities of
• In case of conflict with the Code of Commerce or
contracts, wills, and other public instruments special laws, the Civil Code shall only be suppletory,
shall be governed by the laws of the country in except if otherwise provided for under the Civil Code.
which they are executed. • In general, therefore, in case of conflict, the special
law prevails over the Civil Code, which is general in
When the acts referred to are executed before
nature.
the diplomatic or consular officials of the
Republic of the Philippines in a foreign country, There are instances when the Civil Code expressly
the solemnities established by Philippine laws declares itself superior to special laws:
shall be observed in their execution. (a) Common carriers - The Code of Commerce supplies
the deficiency.
Prohibitive laws concerning persons, their acts
(b) Insolvency - The special laws supply the deficiency.
or property, and those which have for their object
public order, public policy and good customs The general rule in statutory construction is that the
shall not be rendered ineffective by laws or special law governs in case of conflict.
judgments promulgated, or by determinations or
conventions agreed upon in a foreign country.
(Paragraph 1) Doctrine of Lex Loci Celebrationis insofar
as extrinsic validity.
Example: A contract entered into by a Filipino in
Japan will be governed by Japanese law.

Formalities for the acquisition, encumbering, and

alienation of property (whether real or personal) shall be
governed by lex situs.
Example: In Japan, a Chinese sold a parcel of
land in the Philippines to a Filipino. The law of the
Philippines shall govern the formalities of the
sale.

Rule of Exterritoriality

Even if the act be done abroad, still if executed before

Philippine diplomatic and consular officials, the
solemnities of Philippine laws shall be observed.

The theory is that the act is being done within an

extension of Philippine territory (the principle of
exterritoriality).

Intrinsic Validity of Contracts

The prevailing rule in Private International Law today is

to consider the:

(a) lex loci voluntatis (the law of the place voluntarily

selected); or the
(b) lex loci intentionis (the law of the place intended by
the parties to the contract)
PRESCRIPTION OF ACTIONS
TITLE V
PRESCRIPTION
CHAPTER 3
Prescription of Actions
Article 1139 to 1155
ARTICLE 1139. Actions prescribe by the mere lapse
of time fixed by law.
ARTICLE 1140. Actions to recover movables shall
prescribe eight years from the time the possession
thereof is lost, unless the possessor has acquired
the ownership by prescription for a less period,
according to articles 1132, and without prejudice to
the provisions of articles 559, 1505, and 1133. (1962a)
Movable – personal belonging, which can either
move themselves or be moved in space
ARTICLE 1141. Real actions over immovables are
prescribed after thirty years.
This provision is without prejudice to what is
established for the acquisition of ownership and
other real rights by prescription.
Immovable - land or buildings, which are thought to
be stationary in space
ARTICLE 1142. A mortgage action is prescribed after
ten years.
Mortgage action - A court action brought by a
mortgagee for possession of the mortgaged
property or payment of all money due to him, when
the mortgagor has failed to pay the amounts due
under the mortgage.
ARTICLE 1143. The following rights, among others
specified elsewhere in this Code, are not
extinguished by prescription:
(1) To demand a right of way, regulated in article 649;
(2) To bring an action to abate a public or private
nuisance.
ARTICLE 1144. The following actions must be
brought within ten years from the time the right of
action accrues:
(1) Upon a written contract;
(2) Upon an obligation created by law;
(3) Upon a judgment.
ARTICLE 1145. The following actions must be
commenced within six years:
(1) Upon an oral contract;
(2) Upon a quasi-contract.
ARTICLE 1146. The following actions must be
instituted within four years:
(1) Upon an injury to the rights of the plaintiff;
(2) Upon a quasi-delict;
However, when the action arises from or out of any
act, activity, or conduct of any public officer
involving the exercise of powers or authority arising
from Martial Law including the arrest, detention
and/or trial of the plaintiff, the same must be
brought within one (1) year.
ARTICLE 1147. The following actions must be filed
within one year:
(1) For forcible entry and detainer;
(2) For defamation.
Defamation - the action of damaging the good
reputation of someone; slander or libel
ARTICLE 1148. The limitations of action mentioned in
articles 1140 to 1142, and 1144 to 1147 are without
prejudice to those specified in other parts of this
Code, in the Code of Commerce, and in special laws.
ARTICLE 1149. All other actions whose periods are
not fixed in this Code or in other laws must be
brought within five years from the time the right of
action accrues.
ARTICLE 1150. The time for prescription for all kinds
of actions, when there is no special provision which
ordains otherwise, shall be counted from the day
they may be brought.
ARTICLE 1151. The time for the prescription of
actions which have for their object the enforcement
of obligations to pay principal with interest or
annuity runs from the last payment of the annuity or
of the interest.
ARTICLE 1152. The period for prescription of actions
to demand the fulfillment of obligation declared by
a judgment commences from the time the judgment
become final.

ARTICLE 1153. The period for prescription of actions

to demand accounting runs from the day the
persons who should render the same cease in their
functions.
The period for the action arising from the result of
the accounting runs from the date when said result
was recognized by agreement of the interested
parties.

ARTICLE 1154. The period during which the obligee

was prevented by a fortuitous event from enforcing
his right is not reckoned against him.

ARTICLE 1155. The prescription of actions is

interrupted when they are filed before the court,
when there is a written extrajudicial demand by the
creditors, and when there is any written
acknowledgment of the debt by the debtor.
OBLIGATIONS (General Provisions)
BOOK IV
Obligations and Contracts
TITLE I
Obligations
CHAPTER 1
General Provisions
Article 1156 to 1162
ARTICLE 1156. An obligation is a juridical
necessity to give, to do or not to do.
The term obligation is derived from the Latin word
“obligatio” which means a “tying” or “binding.”
(1) It is a tie of law or a juridical bond by virtue of
which one is bound in favor of another to render
something — and this may consist in giving a thing,
doing a certain act, or not doing a certain act.
(2) Manresa defines the term as “a legal relation
established between one party and another,
whereby the latter is bound to the fulfillment of a
prestation which the former may demand of him.”
(3) Article 1156 gives the Civil Code definition of
obligation, in its passive aspect. Our law merely
stresses the duty of the debtor or obligor (he who
has the duty of giving, doing, or not doing) when it
speaks of obligation as a juridical necessity.
Juridical Necessity / Juridical Tie
● Obligation is a juridical necessity because in
case of non-compliance, the courts of justice
may be called upon to enforce its fulfillment or,
in default thereof, the economic value that it
represents. In a proper case, the debtor may
also be made liable for damages, which
represent the sum of money given as a
compensation for the injury or harm suffered by
the creditor or obligee (he who has the right to
the performance of the obligation) for the
violation of his rights.
● In other words, the debtor must comply with his
obligation whether he likes it or not; otherwise,
his failure will be visited with some harmful or
undesirable legal consequences. If obligations
were not made enforceable, then people can
disregard them with impunity. If an obligation
cannot be enforced, it may be only a natural
obligation.
CIVIL OBLIGATION VS. NATURAL
OBLIGATION
Nature of Obligations under Civil Code
Civil Obligation
● Article 1156
● Based on positive law (legal sense)
● Gives the creditor / oblige a right under law to
enforce their performance.
● One which binds in law, vinculum juris, and
which may be enforced in a court of justice.
Natural Obligation
● Articles 1423-1430
● Based on equity and natural law
● Do not grant a right of action to compel their
performance, but after voluntary fulfillment by
the obligor, they authorize the retention of what
has been delivered or rendered by reason
thereof.
● One which in honor and conscience binds the
person who has contracted it, but which cannot
be enforced in a court of justice.
Essential Requisites
(1) Passive Subject (debtor / obligor) - has the duty
and is bound to the fulfillment of the obligation = the
one who performs the prestation (payment of
money).
(2) Active Subject (Creditor / obligee) - has the right
and is entitled to demand the fulfillment /
performance of the obligation.
(3) Object or Prestation (subject matter) - conduct
to be performed. - to give, to do or not to do.
(4) Juridical or Legal Tie (Efficient Cause) -
agreement which binds or connects the parties to
the obligation.
• The source of the obligation or also called as
Vinculum Juris
Example:
Under a building contract, X bound himself to build a house
for Y for P1,000,000.
Here, X is the passive subject, Y is the active subject, the
building of the house is the object or prestation, and the
agreement or contract, which is the source of the
obligation, is the juridical tie.
Suppose X had already constructed the house and it was
the agreement that Y would pay X after the construction is
finished, X then becomes the active subject and Y, the
passive subject.
Form of Obligations
• May be oral or in writing, or partly oral and
partly in writing.
• No required form in obligations arising from
contracts and from other sources as well.
Obligation, Right, and Wrong distinguished
Obligation
• Act or performance which the law will enforce
Right
• Power to demand from another any prestation
Legal Wrong
• An act (ginawa) or omission (hindi ginawa) of a
person in violation of the legal right of another.
In law, the term injury is also used
An obligation on the part of a person cannot exist
without a corresponding right in favor of another,
and vice versa.
Elements of Legal Wrong and Injury
1. Legal Right in favor of a person (plaintiff or
creditor)
2. Correlative Legal Obligation on the part of the
debtor or defendant not to violate the right
3. An act or omission in violation of the right which
resulted into an injury or damage
Example:
In the preceding example, Y has the legal right to have
his house constructed by X who has the correlative
legal obligation to build the house of Y under their
contract. X has the right to be paid the agreed
compensation provided the house is built according to
the terms and conditions of the contract.
The failure of either party, to comply with such terms
and conditions gives the other a cause of action for the
enforcement of his right and/or recovery of indemnity
for the loss or damage caused to him for the violation
of his right.
Kinds of Obligation according to Subject Matter
(1) Real Obligation
• Obligation TO GIVE
• Obligor must deliver to obligee
• Subject: Thing
Example:
X (Seller) binds himself to deliver a piano to Y (Buyer)
(2) Personal Obligation
• Obligation TO DO or NOT TO DO
• Act to be done or not to be done.
• Subject: Action
a. Positive Personal Obligation
- To Do - To render services
Example:
X binds himself to repair the piano of Y
b. Negative Personal Obligation
- Not to Do / Not to give - Refraining from
doing some acts that are prohibited (not
to violate)
Example:
X obliges himself not to build a fence on a certain
portion of his lot in favor of Y who is entitled to a right
of way over said lot
ARTICLE 1157. Obligations arise from: (1) Law; (2)
Contracts; (3) Quasi-Contracts; (4) Acts or
omissions punished by law; and (5) Quasi-
Delicts.
5 SOURCES OF OBLIGATION
Sources classified
The law enumerates five (5) sources of obligations.
They may be classified as follows:
(1) Those emanating from law; and
(2) Those emanating from private acts which may be
further subdivided into:
 (a) Those arising from licit acts, in the case
of contracts and quasi-contracts (infra.); and
(b) Those arising from illicit acts, which may
be either punishable in the case of delicts or
crimes, or not punishable in the case of
quasi-delicts or torts.
Actually, there are only two (2) sources: law and
contracts because obligations arising from quasi-
contracts, delicts and quasi-delicts are imposed by
law
(1) Law
● Obligations imposed by law itself
● Impliedly set forth
● Cannot be presumed
Example: Obligation to pay taxes,
obligation to support one's family
(2) Contracts
● Obligations arising from the stipulation of the
parties
● Contract authorizes it and other party assents
Example: The obligation to repay a loan
or indebtedness by virtue of an
agreement
Stipulation - a condition or requirement that is
specified or demanded as part of an agreement.
(3) Quasi-contracts (you did something good)
● Lawful, voluntary, and unilateral acts
● Giving rise to a juridical relation to the end that
no one shall unjustly enriched at the expense of
another
Example: The obligation to return money
paid by mistake or return a wallet
Unjust enrichment - a benefit by chance, mistake or
another's misfortune for which the one enriched has
not paid or worked and morally and ethically should
not keep.
Illicit Acts
(4) Acts or omissions punished by law / Delicts
● Delict / Crime / Felony
● When they arise from civil liability which is the
consequence of a criminal offense
2 Liabilities
Civil liability - pay for damages
Criminal liability - go to prison
Example: The obligation of a thief to return
the car stolen by him
(5) Quasi-delicts. (1089a) (you did something bad)
● Arises from fault or negligence, but no
contractual relation exists between parties
Example: Obligation of the possessor of
an animal to pay for the damage if his
animal bite a person
ARTICLE 1158. Obligations derived from law are
not presumed. Only those expressly determined
in this Code or in special laws are demandable,
and shall be regulated by the precepts of the law
which establishes them; and as to what has not
been foreseen, by the provisions of this Book.
1st source of obligation: Law / Legal Obligation
● Law should be clearly set forth - to be
demandable.
● It arises from law and is not presumed because
they are considered a burden upon the obligor.
● Special laws refer to all other laws not
contained in the Civil Code. Thus:
(1) An employer has no obligation to furnish free legal
assistance to his employees because no law requires this,
and therefore, an employee may not recover from his
employer the amount he may have paid a lawyer hired by
him to recover damages caused to said employee by a
stranger or strangers while in the performance of his
duties.
(2) A private school has no legal obligation to provide
clothing allowance to its teachers because there is no law
which imposes this obligation upon schools. But a person
who wins money in gambling has the duty to return his
winnings to the loser. This obligation is provided by law.
ARTICLE 1159. Obligations arising from contracts
have the force of law between the contracting
parties and should be complied with in good
faith.
2nd source of obligation: Contractual Obligation
● Obligations arise from contracts or voluntary
agreements.
● Have meeting of minds
- Consent / agreements
● Binding Force
- Have the force of law between the
contracting parties
- Contract must be valid to be enforceable,
otherwise, void.
● Requirement for valid contract
- It shall not be contrary to law, morals,
good customs, public order, and public
policy.
- Void contract does not exist – no
obligations will arise.
● Breach of Contract
- It arises when party fails or refuses to
comply without legal reason or
justification
● Compliance in Good Faith
- Compliance and performance with the
stipulations or terms of the agreement
or contract.
- Non-compliance after receiving the
benefits would constitute unjust
enrichment on his part.
Examples:
(1) If S agrees to sell his house to B and B agrees to
buy the house of S, voluntarily and willingly, then they
are bound by the terms of their contract and neither
party may, upon his own will, and without any
justifiable reason, withdraw from the contract or
escape from his obligations thereunder.
That which is agreed upon in the contract is the law
between S and B and must be complied with in good
faith.
(2) A contract whereby S will kill B in consideration of
P1,000 to be paid by C, is void and non-existent
because killing a person is contrary to law. Likewise,
an agreement whereby S will render domestic service
gratuitously until his loan to B is paid, is void as being
contrary to law and morals.
Elements / Requisites of Contracts
1. Consent - Meeting of minds
2. Object - Subject matter
3. Cause - Consideration / price
ARTICLE 1160. Obligations derived from quasi-
contracts shall be subject to the provisions of
Chapter 1, Title XVII, of this Book.
3rd source of obligation: Quasi - Contract
● Juridical relation = lawful, voluntary, and
unilateral act.
● Not considered as proper contract (because
there is no consent, consent is by fiction of law)
● Becoming bound at the end where no one will be
unjustly enriched / benefitted at the expense of
the other.
Kinds of Quasi–Contracts
1. Negotiorum Gestio
- Voluntary management of others’
properties or affairs.
- Without knowledge or consent of the
latter.
- Can be reimbursed even without
consent
Example:
X went to Baguio with his family without leaving
somebody to look after his house in Manila. While
in Baguio, a big fire broke out near the house of X.
Through the effort of Y, a neighbor, the house of X
was saved from being burned. Y, however,
incurred expenses.
In this case, X has the obligation to reimburse Y
for said expenses, although he did not actually
give his consent to the act of Y in saving his house,
on the principle of quasi-contract.
2. Solutio Indebiti
- Unjust enrichment / improper
payment
- Something is received when no right
to demand it and was delivered
through mistakes
Example:
Dowes CP1,000. If D paid T believing that T was
authorized to receive payment for C, the obligation
to return on the part of T arises. If D paid C P2,000
by mistake, C must return the excess of P1,000.
The presumption (see Art. 1176.), however, is that
"money paid by one to another was due to the
latter," unless the payor proves otherwise.
3. Other example of quasi – contract
- Infinite Variety
- Recovery cannot be had on a true
contract.
- Recovery may be allowed on Quasi –
Contract.
Example:
 S, seller of goat s milk leaves milk at the house
of Beachmorning. B uses the milk and places the
empty bottles on the porch. After one (1) week, S
asks payment for the milk delivered.
Here, an implied contract is understood to have
been entered into by the very acts of S and B,
creating an obligation on the part of B to pay the
reasonable value of the milk, otherwise, B would
be unjustly benefited at the expense of S.
ARTICLE 1161. Civil obligations arising from
criminal offenses shall be governed by the penal
laws, subject to the provisions of article 2177,
and of the pertinent provisions of Chapter 2,
Preliminary Title, on Human Relations, and of
Title XVIII of this Book, regulating damages.
4th source of obligation: Delicts / Act or
omissions punished by law
Civil liability - legal obligation that requires a party
to pay for damages arising from crimes or delicts or
to follow other court-enforcements in a lawsuit.
ARTICLE 1162. Obligations derived from quasi-
delicts shall be governed by the provisions of
Chapter 2, Title XVII of this Book, and by special
laws.
5th source of Obligation: Quasi – Delicts
Causes damage through fault or negligence but
there are no pre-existing contracts between parties
Requisites:
1. Act or Omission
2. Fault or Negligence
3. There must be damage caused
4. There is a connection of cause and effect
between act or omission and the damage.
5. No pre-existing contractual relation.
Example:
While playing softball with his friends, X broke the window
glass of Y, his neighbor. The accident would not have
happened had they played a little farther from the house of
Y.

(1) Civil liability in addition to criminal liability – In this case, X is under obligation to pay the damage caused
to Y by his act although there is no pre-existing contractual
every person criminally liable for an act or omission
relation between them because he is guilty of mere fault or
is also civilly liable for damages suffered by the negligence without any criminal intent.
aggrieved party
Crime distinguished from Quasi-delict
(2) Criminal liability without civil liability – no
material damage (example: gambling), there is no
civil liability to be enforced Crime Quasi-Delict

(3) Civil liability without criminal liability – a person Malicious Intent / Negligence
not criminally responsible may still be liable civilly Criminal Negligence
(example: failure to pay a contractual debt)
Punishment Indemnification
● Civil Liability = Damages (Article 104 of Revised
Public Interest Private Interest
Penal Code)
1. Restitution - Return Criminal and Civil Civil Liability only
Liability
2. Reparation - Repair
3. Indemnification - Payment Criminal Liability Liability can be
Example:
cannot be compromised
X stole the car of Y. If X is convicted, the court will order compromised or
X: settled by parties

(1) to return the car or to pay its value if it was lost or Guilt must be proved Need only be proved by
destroyed; beyond reasonable preponderance of
(2) to pay for any damage caused to the car; and doubt evidence
(3) to pay such other damages suffered by Y as a
consequence of the crime.

Criminal Liability = Imprisonment