Civil Law Study Notes

By Elerlenne Lim

Table of Contents
IN GENERAL........................................................................1
WHEN LAW TAKES EFFECT...................................................1
RETROACTIVITY OF LAWS....................................................1
WAIVER OF RIGHTS.............................................................1
REPEAL OF LAWS.................................................................2
CONFLICT OF LAWS.............................................................2
HUMAN RELATIONS..................................................................2
PERSONS AND FAMILY RELATIONS......................................2
PERSONS................................................................................2
RIGHTS AND OBLIGATIONS OF COUPLES IN INTIMATE RELATIONSHIPS 2
MARRIAGE..............................................................................3
LEGAL SEPARATION..................................................................5
RIGHTS AND OBLIGATIONS BETWEEN HUSBAND AND WIFE..............5
PROPERTY RELATIONS OF THE SPOUSES........................................5
THE FAMILY............................................................................6
PATERNITY AND FILIATION.........................................................6
ADOPTION..............................................................................7
SUPPORT................................................................................8
PARENTAL AUTHORITY..............................................................8
SURNAME............................................................................9
ABSENCE................................................................................9
PROPERTY...........................................................................9
CLASSIFICATION OF PROPERTY....................................................9
OWNERSHIP..........................................................................10
ACCESSION...........................................................................10
QUIETING OF TITLE.................................................................14
CO-OWNERSHIP.....................................................................14
POSSESSION..........................................................................14
USUFRUCT............................................................................15
EASEMENTS..........................................................................15
NUISANCE.............................................................................16
MODES OF ACQUIRING OWNERSHIP..........................................16
PRESCRIPTION...................................................................17
TYPES OF PRESCRIPTION...................................................17
SUCCESSION......................................................................17
GENERAL PROVISIONS.............................................................17
TESTAMENTARY SUCCESSION....................................................17
LEGAL OR INTESTATE SUCCESSION....................................20
PROVISIONS COMMON TO TESTATE AND INTESTATE SUCCESSION 21
OBLIGATIONS....................................................................21
GENERAL PROVISIONS.............................................................21
NATURE AND EFFECT OF OBLIGATION........................................21
KINDS OF OBLIGATIONS...........................................................22
EXTINGUISHMENT OF OBLIGATION.............................................23
CONTRACTS......................................................................24
GENERAL PROVISIONS.......................................................24
FORMALITY........................................................................24
REFORMATION OF INSTRUMENT......................................25
DEFECTIVE CONTRACTS...........................................................25
ESTOPPEL..........................................................................26
SPECIAL CONTRACTS.........................................................26
SALES..................................................................................26
TRUSTS..............................................................................27
LEASE.................................................................................28
AGENCY.............................................................................28
COMPROMISES..................................................................29
LOAN.................................................................................29
QUASI-CONTRACTS...........................................................30
NEGOTIORUM GESTIO.......................................................30
SOLUTIO INDEBITI..............................................................30
TORTS...............................................................................31
DAMAGES.........................................................................31
LAND TITLES AND DEEDS...................................................31
TORRENS SYSTEM..............................................................31
CERTIFICATE OF TITLE........................................................32
ORIGINAL REGISTRATION..................................................32
WRIT OF POSSESSION........................................................33
SUBSEQUENT REGISTRATION............................................33
NON-REGISTRABLE PROPERTIES........................................33
The New Civil Code of the Philippines took effect on August
30, 1950
WHEN LAW TAKES EFFECT
General Rule: Laws shall take effect after 15 days following
the completion of their publication in the Official Gazette or
in a newspaper of general circulation.
Exception: Unless otherwise provided
RETROACTIVITY OF LAWS
General Rule: Laws are to be construed as having only
prospective operation.
Exception: Laws may be given retroactive effect in the
following cases:
1. When the law itself provide for its retroactivity
 Unless: The retroactive application of a
statute will make it an ex post facto law or
will result in impairment of obligations and
contract.
2. When a penal law is favorable to the accused
 Unless: the convicted felon is an habitual
delinquent, in which case it cannot be given
retroactive application
3. When the law is remedial or procedural in nature.
4. When the law is curative in character.
5. When the law creates new substantive rights
provided it has not prejudiced another acquired right
of the same origin.
WAIVER OF RIGHTS
Requisites for valid waiver of rights:
1. That the person making the waiver possesses the
right
2. That he has the capacity and power to dispose of the
right
3. That the waiver must be made in a clear and
unequivocal manner, although it may be made
expressly or impliedly
4. That the waiver is not contrary to law, public policy,
public order, morals good customs or prejudicial to a
third person with a right recognized by law.
REPEAL OF LAWS
Doctrine of Stare Decisis
Under this doctrine, a point of law already established will,
generally, be followed by the same determining court and by
all courts of lower rank in subsequent cases where the same
legal issue raised.
CONFLICT OF LAWS
Principle of Generality of Criminal Laws
General Rule: Philippine Penal laws and those of public
security and safety are obligatory upon all who live and
sojourn in the Philippines.
Exceptions: Philippine Penal laws shall not apply in the
following cases:
1. If treaty stipulations provide to the contrary
2. If a law of preferential application provides to the
contrary
3. If a principle of public international provides to the
contrary.
Principle of Lex Rei Sitae (or Lex Situs)
General Rule: If the issue involves properties, whether real or
personal, the applicable law is the law of the country where it
is situated.
Exception: It is the national law of the decedent which shall
apply in intestate or testamentary succession, with regard to:
1. The order of succession
2. Amount of successional rights
3. Intrinsic validity of the provisions of the will
4. The capacity to succeed
Whatever may be the nature of the property and regardless
of the country wherein such property may be found.
Renvoi Doctrine – procedure whereby the jural matter
presented is referred by the conflict of laws rules of the
forum to a foreign state, the conflict of laws rule of which in
turn refers the matter back to the law of the forum or a third
state.
Transmission Theory – where the foreign law refers the issue
to a third country, the third country’s law shall govern.
Doctrine of Processual Presumption
The foreign law must be alleged and proved otherwise it is
presumed that the foreign law is the same as domestic law.
Forum Non Conveniens (CIE)
Under this rule, a Philippine court or tribunal may assume
jurisdiction over the case if it chooses to do so, provided:
1. That the Philippine court is one to which the parties
may Conveniently resort to;
2. That the Philippine court is in a position to make an
Intelligent decision as to the law and the facts; and
3. That the Philippine court has or is likely to have
power to Enforce its decision.
 Human Relations 3. Constructive Domicile of Domicile by Operation of
Law – assigned by law to a child who is suffering
from legal disability at the time of his birth or also in
Damnum absque injuria one of change of domicile arising from marriage.
 under this principle, the proper exercise of lawful
right cannot constitute a legal wrong for which an
action will lie, although the act may result in damage RIGHTS AND OBLIGATIONS OF COUPLES IN
to another, for no legal right has been evaded. INTIMATE RELATIONSHIPS
 Well-settled is the rule that damage resulting from
the legitimate exercise of a person’s right is a loss
without injury. Who has the lawful custody of children in VAWC cases?
Children below seven (7) years old or older but with mental
The elements of abuse of rights are: or physical disabilities shall automatically be given to the
1. The existence of legal Right or duty mother, with right to support unless the court finds
2. Which is exercised in Bad faith compelling reasons to order otherwise.
3. With the sole intent of Prejudicing or injuring
another. A victim who is suffering from battered woman syndrome
shall not be disqualified from having custody of her children.
Accion In Rem Verso Solutio Indebiti In no case shall custody of minor children be given to the
(Art. 22) perpetrator of a woman who is suffering from Battered
The source of The source of woman syndrome.
obligation is quasi- obligation is law
contract
The delivery or The delivery or Marriage
payment is not due to payment to the  A special contract of permanent union between a
mistake of fact or defendant is by reason man and a woman entered into in accordance with
mistake in the of mistake of fact or law for the establishment of conjugal or family life.
application of a mistake in the
doubtful or difficult application of doubtful Essential requisites of a valid marriage: (LC)
provision of law. or difficult provision of 1. Legal Capacity of the contracting parties
law. a. The parties must be a man and a woman;
b. There must be no impediment to marry
Requisites in order for a prejudicial question to exist: each other;
1. The previously instituted civil action involves an issue c. Each party must be at least 18 years of age.
similar or intimately related to the issue raised in the 2. Consent which must be (a) freely given and (b) made
subsequent criminal action. in the presence of solemnizing officer.
2. The resolution of such issue determines whether or
not the criminal action may proceed. Formal Requisites of a Valid Marriage: (SLC)
1. Valid marriage license
2. Authority of solemnizing officer
3. Marriage ceremony
PERSONS AND FAMILY RELATIONS
Absence of any of the
Defect in any of the Irregularity in the
Persons formal or essential
essential requisites formal requisites
requisites
General Rule: Marriage is voidable It does not affect the
Marriage is void ab validity of the
Juridical Capacity vs. Capacity to Act
initio marriage but the
party responsible for
Juridical Capacity Capacity to Act Exception: Where such irregularity may
Definition: Fitness to Definition: The power either or both parties be held civilly,
believed in good faith criminally and
be the subject of legal to do acts with legal that the solemnizing administratively
relation effects. officer has legal liable.
Inherent in every Not inherent but may authority to perform
natural person only be acquired marriages. Exception: The
marriage is voidable
May only be lost May be lost through where contracting
through death (in case other means parties is 18 years old
of natural person) or over but below 21
without the consent
Cannot be limited or Can be limited or of the parents.
restricted restricted

When A Child is Considered Born (Bar 1991, 1999, 2012)
 Intra-uterine life of at least 7 months – considered
born if it is alive at the time it is completely delivered
from the mother’s womb.
 Intra-uterine life of less than 7 months – not
deemed born if it dies within 24 hours after its
complete delivery from the maternal womb.
DOMICILE AND RESIDENCE OF PERSONS
Kinds of Domicile
1. Domicile of Origin – assigned by law to a person at
birth;
2. Domicile of Choice – the place chosen by a person
who does not suffer any legal disability; and
Marriages exempt from requirement of marriage license:
1. Marriage in articulo mortis
2. Marriage among muslims or members of ethnic
cultural communities, provided the same are
solemnized in accordance with their customs, rites,
or practices
3. Marriages where 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 (Marriage in remote areas)
4. Marriages involving a man and a woman who have
been living together as husband and wife for at least
five (5) years before the marriage and who, during
the said period, were not suffering from any legal
impediment to marry each other.
Persons authorized to solemnize marriages:
1. Incumbent members of the judiciary
2. Pries, Rabbis and ministers of any church
a. Must be duly authorized by his respective
church or sect in writing
b. His written authority must be duly
registered with the Civil Registrar General
c. He must act within the limits of such written
authority
d. At least one of the contracting parties must
belong to his church or sect
3. Ship captain or airplane chief pilot (may be exercised
not only when the ship is at sea or the plane is in
flight but also during stopovers at ports of call)
a. Marriage must be in articulo mortis
b. Marriage must be between passengers
and/or crew members
4. Military commanders of a unit
a. There is absence of chaplain
b. The ceremony is in military zone of
operation
c. The marriage is in articulo mortis
5. Consul-general, consuls or vice-consuls
a. Marriage must be celebrated abroad in the
country where the consul holds office
b. The marriage must be between Filipino
citizens
6. Municipal and City Mayors
Marriages Exempt from the Marriage License Requirement:
(ARMM-L)
1. Marriage among Muslims or members of Ethnic
Cultural Communities, provided such were
solemnized in accordance with their customs, rites,
and practices;
2. Marriage solemnized outside the Philippines where
no marriage license required by the country where
the marriage was solemnized; (Lex Loci
Celebrationis)
3. Marriage of a man or a woman who have lived
together as husband and wife for at least five (5)
years (continuously before the marriage) and
without legal impediment to marry each other.
(Marital Cohabitation)
4. Marriage in Articulo mortis;
5. Marriage in Remote places – 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.
NIÑAL VS. BAYADOG
A false affidavit (meaning there was in fact no five-year
cohabitation) is not a mere formal irregularity – if there is no
affidavit of cohabitation or if the affidavit is false, the
marriage is void.
The parties must suffer no impediment at the time of
cohabitation and marriage (Bar 2002)
Requisites for a marriage ceremony to exist:
1. Personal appearance by the contracting parties
before the solemnizing officer
2. Personal declaration by the contracting parties that
they take each other as husband and wife
3. Such personal declaration by the parties must be
done in the presence of solemnizing officer
Void Marriages under Article 35: The following marriages
shall be void from the beginning
1. Those contracted by the parties below eighteen (18)
years of age
2. Absence of authority of solemnizing officer unless
the parties believed in good faith that the
solemnizing officer had the legal authority to do so
3. Absence of marriage license unless exempt from the
requirement of such marriage license
4. Bigamous or polygamous marriages
5. Contracted through mistake of one contracting party
as to the (physical) identity of the other.
6. Subsequent marriages that are void under article 53.
Juliano-Llave vs. Republic (2011)
In a void marriage, in which no marriage has taken place and cannot
be the source of rights, any interested party may attack the marriage
directly or collaterally without prescription, which may be filed even
beyond the lifetime of the parties to the marriage.
Requisites/Characteristics of Psychological Incapacity
1. Gravity
2. Juridical Antecedence
3. Incurability
DEL ROSARIO VS. DEL ROSARIO
Psychological incapacity must be more than just a difficulty,
refusal or neglect in the performance of the marital
obligations; it is not enough that the party prove that the
other failed to meet the responsibility and duty of a married
person.
Castillo vs. Republic (2017)
Irreconcilable differences, sexual infidelity or perversion, emotional
immaturity and irresponsibility and the like, do not by themselves
warrant a finding of psychological incapacity under Article 36, as the
same may only be due to a person's refusal or unwillingness to
assume the essential obligations of marriage. In order for sexual
infidelity to constitute as psychological incapacity, the respondent's
unfaithfulness must be established as a manifestation of a disordered
personality, completely preventing the respondent from discharging
the essential obligations of the marital state; there must be proof of a
natal or supervening disabling factor that effectively incapacitated
him from complying with the obligation to be faithful to his spouse. It
is indispensable that the evidence must show a link, medical or the
like,
between the acts that manifest psychological incapacity and the
psychological disorder itself.
Incestuous Marriages (Article 37)
1. Between ascendants and descendants of any degree
2. Between brothers and sisters, whether of full or half
blood.
Void marriages for reasons of public policy: The following
marriages are shall be void from the beginning for reason of
public policy:
1. Between collateral blood relatives, whether
legitimate or illegitimate, up to fourth civil degree
2. Between step-parents and step-children
3. Between parents in law and children in law
4. Between adopting parents and added child
5. Between the surviving spouse of adopting parent
and adopted child
6. Between surviving spouse of adopted child and
adopter
7. Between adopted child and legitimate child of the
adopter
8. Between the adopted children of the same adopter
9. Between parties where one, with the intention to
marry the other, killed the other person’s or his/her
own spouse.
A petition for declaration of absolute nullity of a void
marriage does not prescribe (ART. 39, FCP)
General Rule: A petition for declaration of absolute nullity of
a void may be filed solely by the husband or wife in such void
marriage.
Exception: In bigamy, the husband or wife of the prior
subsisting marriage is the one who can file the petition.
Bigamous marriage: Article 40 vs. Article 35 (4)
Art. 35 (4) Art. 40
 Prior marriage is Prior marriage is 4. If the fact of reappearance is disputed in the proper
either void or void but a courts of law, and no judgment is yet rendered
voidable subsequent confirming such fact of reappearance.
marriage is
contracted prior to Santos vs. Santos (2014)
judicial declaration Mere reappearance will not terminate the subsequent marriage even
of nullity of the if the parties to the subsequent marriage were notified if there was
prior marriage "no step taken to terminate the subsequent marriage, either by filing
Property regime of The property regime an affidavit of reappearance or by court action.
the void marriage is of the void marriage
A bigamous subsequent marriage may be considered valid when:
that provided in Art. is either absolute
1. The prior spouse has been absent for four consecutive
148 community of
years;
property or conjugal 2. The spouse present has well-founded belief that the absent
partnership of gains, spouse was already dead;
unless the parties 3. There must be a summary proceeding for the declaration of
provided for presumptive death of the absent spouse; and
complete 4. There is a court declaration of presumptive death of the
separation as their absent spouse. (id)
property regime in
their marriage A subsequent marriage contracted in bad faith, even if it was
settlement. contracted after a court declaration of presumptive death, lacks the
requirement of a well-founded belief that the spouse is already dead.
The first marriage will not be considered as validly terminated.
Voidable vs. Void Marriage Marriages contracted prior to the valid termination of a subsisting
marriage are generally considered bigamous and void. Only a
subsequent marriage contracted in good faith is protected by law. (id)
Voidable Marriage Void Marriage
The marriage is Already invalid Since an undisturbed subsequent marriage under Article 42 of the
invalidated only by a from the beginning Family Code is valid until terminated, the "children of such marriage
judgment of and the judgment shall be considered legitimate, and the property relations of the
annulment. of the court is spouse[s] in such marriage will be the same as in valid marriages.
merely
confirmatory if its VOIDABLE MARRIAGES
status.
Can be generally Can never be The following are Voidable Marriages:
ratified by free ratified 1. The party in whose behalf it is sought to have the
cohabitation (except marriage annulled was 18 years of age or over but
for grounds mentioned below 21, and the marriage was solemnized without
in par. 5 and 6 of art. the consent their father, mother, surviving parent or
45) guardian, or persons having legal charge of them (in
∫Can be assailed only in Can be attacked the order mentioned) and both lived together as
direct proceeding for collaterally husband and wife. (Bar 1990, 2011)
that purpose ( a 2. Either party is of unsound mind;
petition for annulment) 3. Fraud in obtaining consent of either party;
and not collaterally 4. Vitiated consent – consent was obtained through
Can be assailed only Can be questioned force, intimidation or undue influence;
during the lifetime of even after the 5. Physical incapability of either party to consummate
the parties and not death of either the marriage with the other, and such incapacity
after the death of party continues and appears to be incurable (Bar 2007);
either 6. Either party was afflicted with sexually transmissible
The action prescribes The action or disease found to be serious and appears to be
defense for nullity incurable.
is imprescriptible
Only the parties to the Any proper Exclusive List of Circumstances That Constitute Fraud:
voidable marriage can interested party (NCCC)
assail it. may attack a void 1. Non-disclosure of a previous conviction by final
marriage. judgment of the other party of a crime involving
moral turpitude (Bar 2011)
MERCADO VS. TAN 2. Concealment by the wife of the fact that at the time
Without judicial declaration, the void nature of the previous of marriage, she was pregnant by a man other than
marriage cannot be used as a defense in a bigamy case. (Bar her husband;
2011) 3. Concealment of sexually transmissible disease,
regardless of its nature, existing at the time of the
DECLARATION OF PRESUMPTIVE DEATH marriage;
4. Concealment of drug addiction, habitual alcoholism,
Recording in the Civil Registry of an affidavit of reappearance homosexuality or lesbianism existing at the time of
by absent spouse automatically terminates the second marriage.
marriage. (Art. 42, FCP)

The subsequent marriage may still subsist despite the absent

or presumptively dead spouse’s reappearance:
1. If the marriage has already been annulled or has
been declared a nullity;
2. If the sworn statement of the reappearance is not
recorded in the civil registry of the subsequent
spouse residence;
3. If there is no notice to the subsequent spouses;

Doctrine of Triennial Cohabitation
There is a presumption that the husband is impotent if, after
3 years of living together, the wife remains a virgin.
Republic vs. Manalo (April 2018)
The Supreme Court has held that a divorce decree obtained abroad
between a Filipino and his or her foreign spouse is valid even if one
who initiated the divorce proceedings is the Filipino and thus such
divorce decree may be the subject of a petition for recognition.
Racho vs. Tanaka (June 2018) [Penned by J.Leonen]
A foreign divorce may be recognized in this jurisdiction as long as it is
validly obtained, regardless of who among the spouses initiated the
divorce proceedings. The Filipino spouse may be granted the
capacity to remarry once our courts find that the foreign divorce was
validly obtained by the foreign spouse according to his or her national
law, and that the foreign spouse's national law considers the
dissolution of the marital relationship to be absolute.
Fujike vs. Marinay (2013)
Since the recognition of a foreign judgment only requires proof of fact
of the judgment, it may be made in a special proceeding for
cancellation or correction of entries in the civil registry under Rule
108 of the Rules of Court.
Legal Separation
Grounds for Legal Separation (Art. 55) (RAFPALCASA)
1. Repeated physical violence or grossly abusive
conduct directed against the petitioner, a common
child, or a child of the petitioner
2. Physical violence or moral pressure to compel the
petitioner to change religious or political affiliation
3. Attempt of respondent to corrupt or induce the
petitioner, a common child, or a child of the
petitioner, to engage in prostitution, or connivance
in such corruption or inducement
4. Final judgment sentencing the respondent to
imprisonment of more than six (6) years, even if
pardoned
5. Drug Addiction or habitual alcoholism of the
respondent
6. Lesbianism or homosexuality of the respondent
7. Contracting by the respondent of subsequent
bigamous marriage, whether in the Philippines or
abroad
8. Sexual infidelity or perversion
9. Attempt by the respondent against the life of the
petitioner; or
10. Abandonment of the petitioner by respondent
without justifiable cause for more than one year.
Prescriptive Period: 5 years from the occurrence of the
ground
Cooling-off Period: Six (6) months from the filing of petition.
Each sexual infidelity is a cause for a legal separation. Hence,
the five-year prescriptive period for filing legal separation
runs every time there is sexual infidelity.
Defenses in Legal Separation:
1. Condonation
2. Consent
3. Connivance
4. Collusion
5. Mutual guilt
6. Prescription (five years from the occurrence of the
cause).
Rights and Obligations between Husband and Wife
Rights and Obligations of Spouses:
1. To love together
2. Observe mutual, love, respect and fidelity
3. Render mutual help and support
Property Relations of the Spouses
MARRIAGE SETTLEMENT
Marriage Settlement – It is the agreement entered into by
the future spouses fixing the property regime that should
govern during the existence of marriage.
Requisites of a Valid Marriage Settlement:
1. It must be entered into before the celebration of
marriage;
2. It must be in writing;
3. It must be signed by the parties;
4. To affect third person, it should be registered in the
civil registry and registry of property;
5. It must fix terms and conditions of their property
relations.
Effect if the marriage does not take place or the marriage
settlement is void:
General Rule: The provision of the settlement is void.
Exceptions: Stipulations that do not depend upon the
celebration of marriage shall be valid and shall remain in
force. (Bar 2011)
DONATIONS BY REASON OF MARRIAGE (DONATION
PROPTER NUPTIAS)
Requisites of Donation Propter Nuptias:
1. Made before the celebration of the marriage;
2. Made in consideration of the marriage;
3. The donation is in favor of one or both of the future
spouses.
PROPERTY REGIMES
Absolute Community of Property
The community properties shall consist of all properties
owned by the spouses at the time of the marriage or acquired
thereafter.
Exclusions: Properties not included in the community
property are:
1. Property acquired during the marriage by gratuitous
title including the fruits and income thereof except
when the donor, testator, or grantor expressly
provide otherwise;
2. Property acquired before the marriage by either
spouse who has legitimate descendants by a former
marriage;
 3. Property for personal or exclusive use except
jewelry.
Conjugal Partnership of Gains
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
efforts or by chance.
PNB vs. Reyes Jr. (2016)
The administration and enjoyment of the conjugal partnership 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 five years
from the date of the contract implementing such decision. In the
event that one spouse is incapacitated or otherwise unable to
participate in the administration of the conjugal properties, the other
spouse may assume sole powers of administration. These powers do
not include disposition or encumbrance without authority of the court
or the written consent of the other spouse. In the absence of such
authority or consent, the disposition or encumbrance shall be void.
Exclusive Property of Each Spouse:
1. Property that is brought to the marriage as his or her
own;
2. Property acquired during the marriage by gratuitous
title;
3. Property acquired by right of redemption, barter, or
exchange with property belonging to either spouse;
4. Property purchased with exclusive money of either
spouse.
Malabanan vs. Malabanan Jr. (2019)
Under the Civil Code, property acquired during marriage is presumed
to be conjugal. There is no need to prove that the money used to
purchase a property came from the conjugal fund.
Rule in cases of improvement of exclusive property:
1. Reverse Accession – If the cost of the improvement
and the value of the improvement is more than the
value of the principal property at the time of the
improvement, the entire property becomes conjugal.
2. Accession – If cost of the improvement and the value
of the improvement is equal to or less than the
value of the principal, the entire property becomes
the exclusive property of the respective spouse.
Credit to a spouse prior to marriage: Debt to a spouse where
the term of payment extends after marriage shall remain the
property of the said spouse. However, the interest shall
pertain to the conjugal partnership. (Art. 119, FCP)
Property purchased on installment: Property bought on
installment that is paid partly from exclusive funds of the
spouses and partly from conjugal funds shall be subject to the
following rules:
1. If full ownership was vested before the marriage – it
shall belong to the buyer-spouse.
2. If full ownership was vested during the marriage – it
shall belong to the conjugal partnership.
Ante-nuptial debt that redound to the benefit of the
family/conjugal partnership is chargeable to the said
partnership.
PNB vs. Reyes Jr. (2016)
If she is a mere surety or guarantor, evidence that the family
benefited from the loan need to be presented before the conjugal
partnership can be held liable.
On the other hand, if the loan was taken out to be used for the family
business, there is no need to prove actual benefit. The law presumes
the family benefited from the loan and the conjugal partnership is
held liable.
If the conjugal partnership is insufficient to cover the liability, the
husband is solidarily liable with the wife for the unpaid balance. (id)
REGIME OF SEPARATION OF PROPERTY
Grounds for Judicial Separation of Property For Cause:
1. The spouse of petitioner has been sentenced to a
penalty which carries with it civil interdiction;
2. The spouse of the petitioner has been judicially
declared an absentee;
3. The loss of parental authority of the spouse of
petitioner has been decreed by the court;
4. The spouse of the petitioner has abandoned the
latter or failed to comply with his or her obligations
to the family as provided for in Article 101;
5. The spouse granted the power of administration in
the marriage settlement has abused that power; and
6. At the time of the petition, the spouses have been
separated in fact for at least one year and
reconciliation is highly improbable.
PROPERTY RELATIONS BETWEEN COMMON-LAW SPOUSES
Co-ownership (Art. 147): The law on co-ownership applies
with respect to the properties acquired by both through their
work or industry in any of these two cases:
1. The Common-Law Spouses are WITHOUT
IMPEDIMENT.
2. The marriage is void but the spouses are without
impediment. (Bar 1992, 2000, 2009, 2010, 2012 and
2015)
(See Codal)
Common-Law Spouses with Impediments: In cases of
cohabitation of common-law spouses who suffer from
impediment to marriage, 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. (Bar
1992, 1997, 1998, 2000, 2011, and 2012)
The Family
Family Relations includes:
1. Husband and wife;
2. Parents and children;
3. Brothers and sisters, whether full or half-blood.
The Law prohibits a compromise upon the following
questions:
1. Validity of marriage or legal separation;
2. Any ground for legal separation;
3. Future support;
4. Jurisdiction of the courts; and
5. Future legitime.
Family Home
It is the dwelling house and the land where the spouses or the
unmarried head of the family reside together with her family.
General Rule: A family home is exempt from execution,
forced sale or attachment.
Exceptions: A family home is not exempt from execution,
forced sale and attachment for the following claims:
1. Non-payment of taxes;
2. Debts incurred prior to the constitution of a family
home;
3. Debts secured by mortgages on the premises before
or after such constitution;
4. Debts due to laborers, mechanics, architects,
builders, materialmen and others who have
rendered service or furnished material for the
construction of the building.
Beneficiaries of the Family Home
1. The husband and wife, or an unmarried person who
is the head of a family, who constituted the family
home;
2. Their parents, ascendants, descendants, brothers,
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.
Paternity and Filiation
Paternity – civil status of a father in relation to the child.
Filiation – civil status of the child in relation to his or her
parents
People vs. Baring
Certificate of live birth purportedly identifying the putative
father is not competent evidence of paternity when there is
no showing that the putative father had a hand in the
preparation of the said certificate.
Legitimate children – They are children who are conceived or
born during the valid marriage of the parents. (Bar 2011)
General Rule: Children of void marriage are generally
illegitimate.
Exceptions: Children of void marriages by reason of:
1. Article 36 – void marriage by reason of Psychological
incapacity
2. Article 53- Void because of noncompliance of
liquidation, partition, and distribution of properties
of the spouses and the delivery of the children’s
presumptive legitime; and the recording of such fact
in the appropriate civil registry and registries of
property.
In an artificial insemination, the child is legitimate if:
1. Both the husband and the wife authorized or ratified
such insemination in a written instrument;
2. Such written instrument is executed and signed by
them before the birth of the child;
3. It is the wife who bore in her womb and delivered
the child.
Period to claim legitimacy: A person who claims to be a
legitimate child of another may file an action for the
declaration of his or her legitimacy.
1. If to be filed by the child himself or herself – The
action to claim legitimacy may be brought by the
child during his/her lifetime.
2. If the child dies during his/her minority or state of
insanity, the right to file an action to claim legitimacy
shall be transmitted to the heirs – the heirs shall
have a period of 5 years within which to institute the
action.
Proof of Legitimacy: (1995 Bar)
The filiation of the legitimate children is established by any of
the following:
1. The record of birth appearing in the civil register or a
final judgment; or
2. An admission of a legitimate filiation in a public
document or private handwritten instrument and
signed by the parents concerned;
In the absence of the foregoing, the legitimate filiation shall
be proved by:
1. The open and continuous possession of the status of
legitimate child; or
2. Any other means allowed by the Rules of Court and
special laws.
Rights of Legitimate Children (1990 Bar)
1. To bear the surnames of the father and the mother;
in conformity with the provisions of the civil code on
surnames;
2. To receive support from their parents, their
ascendants, and in proper cases, their brothers and
sisters, in conformity with provisions of this Code on
Support; and
3. To be entitled to the legitimate and other
successional rights.
Illegitimate Children – Those conceive and born outside a
valid marriage.
Barcelote vs. Republic (2017)
Article 176 of the Family Code, as amended by RA 9255, provides:
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 filiation has been expressly recognized
by their 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.
The law is clear that illegitimate children shall use the surname and
shall be under the parental authority of their mother. (id)
Abella vs. Cabañero (2017)
An illegitimate child, "conceived and born outside a valid marriage,"
as is the admitted case with petitioner's daughter, is entitled to
support. To claim it, however, a child should have first been
acknowledged by the putative parent or must have otherwise
previously established his or her filiation with the putative parent.
When "filiation is beyond question, support [shall then follow] as [a]
matter of obligation.
Impugning the Legitimacy of a Child
General Rule: Only the husband can impugn the legitimacy of
the child.
Exception: The heirs may impugn the legitimacy of the child
if: (PreFiBo)
1. The husband dies before the Prescription of the
action;
2. The husband dies after the Filing of the complaint
without having desisted therefrom;
3. If the child was Born after the death of the husband.
Prescriptive Period of Action to Impugn Legitimacy:
(Reckoning period: from knowledge of birth or recording of
such in the civil register)
1. One (1) year – if the husband, or in exceptional
cases, any of his heirs, resides in the city or
municipality where birth took place or was recorded;
2. Two (2) years – if the husband, or in his default, all
of his heirs do not reside at the place of birth or
where it was recorded, but all are residing in the
Philippines;
3. Three (3) years – if the husband or, in his default, all
of his heirs reside abroad.
Grounds to Impugn; (1989 Bar) (PBA)
1. Physical impossibility of the husband to have sexual
intercourse with the wife within the first 120 days of
the 300 days immediately preceding the birth of the
child due to: (ISI)
a. Physical Incapacity of the husband or
impotency;
b. Husband and wife were living Separately;
c. Serious Illness of the husband which
absolutely prevented sexual intercourse.
2. Biological or scientific proof that the child could not
have been that of the husband;
3. Written Authorization or ratification of either parent
for artificial insemination was obtained through
 mistake, fraud, violence, intimidation or undue consanguinity or affinity of the
influence. Filipino spouse.

Status of a Child Born After 300 days Following the
Termination of Marriage:
1. First marriage – If a child was born before the lapse
of 180 days after celebration of second marriage
provided it be born within 300 days after
termination of the first marriage.
2. Second marriage- If a child was born after 180 days
following the celebration of the second marriage
whether born within 300 days after termination of
first marriage or afterwards.
Legitimation
The process provided under our law where the status of a
child conceived and born out of wedlock is improved, by
operation of law, from illegitimacy to that of legitimacy by the
mere subsequent marriage of the parents.
Legitimated Children – children conceived and born outside
of wedlock of parents who, at the time of the conception of
the former, were not disqualified with any impediment to
marry each other or were so disqualified only because either
or both of them were below eighteen (18) years of age.
Consent in Adoption
The written consent of the following is required:
1. The adoptee, if he is 10 years of age or over;
2. Known biological parents or legal guardians or
proper government instrumentality which has legal
custody of a child;
3. Legitimate/adopted children, 10 years old or over, of
the adopter and adoptee;
4. The illegitimate children, 10 years old or over, of the
adopter if living with the adopter and the latter’s
spouse; and
5. Spouse of the adopter and adoptee.
General Rule: The husband and wife must jointly adopt.
Exception: Joint adoption is not necessary in the following
cases:
1. When one spouse seeks to adopt the legitimate child
of the other; (2003 Bar)
2. When one spouse seeks to adopt his/her own
illegitimate child (with the consent of the other
spouse); or
3. When the spouses are legally separated from each
other.

Adoption Written Consent of the Following Persons is Required in

Adoption: (BAILS)
1. The Adopted, if 10 years of age or over;
Domestic Adoption Act of 1998 (R.A. 8552)
2. Biological parents, if known, or legal guardian, or the
proper government instrumentality that has legal
Who may adopt:
custody of the child;
1. Filipino Citizen
3. The Legitimate/adopted children, 10 years old or
a. Of legal age;
over of the adopter and the adoptee;
b. In position to support and care for
4. The Illegitimate children, 10 years old or over, of the
his/children in keeping with the means of
adopter, if living with the adopter and the latter’s
the family;
spouse, if any; and
c. Good moral character
5. Spouse of the adopter and adoptee.
d. In possession of full civil capacity or legal
rights;
Recission of Adoption
e. At least sixteen (16) years older than the
adoptee except:
Grounds for Rescission: (ASAR)
i. Adopter is the biological parent of
1. Repeated physical and verbal maltreatment by the
the adoptee
adopter(s) despite having undergone counseling;
ii. Adopter is the spouse of the
2. Attempt on the life of the adoptee
adoptee’s parent
3. Sexual assault or violence;
f. Has not been convicted of any crime
4. Abandonment and failure to comply with parental
involving moral turpitude
obligations.
g. Emotionally and psychologically capable of
caring for children.
INTER-COUNTRY ADOPTION ACT OF 1995 (R.A. 8043)
2. Alien
a. Same qualification as Filipino;
Who may be adopted: Only legally free child may be the
b. Citizen of the country has diplomatic
subject of inter-country adoption.
relations with the Philippines;
c. Certified by said office that his government
Legally-free child – a child who has been voluntarily or
allows the adoptee to enter his country as
involuntarily committed to the DSWD of the Philippines, in
his adopted child;
accordance with the Child and Youth Welfare Code.
d. Have been living in the Philippines for at
least 3 continuous years prior to the
Who may adopt: Any alien or Filipino citizen permanently
application for adoption and maintains such
residing abroad may file an application for inter-country
residence until the adoption decree is
adoption of a Filipino child if he/she:
entered. Exceptions: the three (3) year
1. Is at least 27 years of age and at least 16 years older
requirement does not apply when:
than the child to be adopted, at the time of the
i. The adopter is a former Filipino
application unless the adopter is a parent by nature
citizen who seeks to adopt a
of the child to be adopted or the spouse of such
relative within the 4th degree of
parent;
consanguinity or affinity;
2. If married, his/her spouse must jointly file for
ii. One who seeks to adopt the
adoption;
legitimate or illegitimate child of
3. Has the capacity to act and assume all right and
his/her Filipino spouse;
responsibilities of parental authority under his
iii. One who is married to a Filipino
national laws, and has undergone the appropriate
citizen and seeks to adopt jointly
counselling from an accredited counselor in his/her
with his/her spouse a relative
country;
within the 4th degree of
 4. Has not been convicted of a crime involving moral
turpitude;
5. Is illegible to adopt under his/her national law;
6. Is in a position to provide a proper care and support
and to give the necessary moral values and example
to all his children, including the child to be adopted.
7. Agrees to uphold the basic rights of the child as
embodied under Philippine Laws, the U.N.
Convention on the rights of a child, and to abide by
the rules and regulations issued to implement the
Inter-Country Adoption Act.
8. Comes from a country with whom the Philippines
has diplomatic relations and whose government
maintains a similarly authorized and accredited
agency and that the adoption is allowed under
his/her national laws; or
9. Possess all the qualifications and none of the
disqualifications under the Inter-Country Adoption
Act and other applicable Philippine Laws.
Support
-Comprise everything indispensable for sustenance, dwelling,
clothing, medical attendance, education, and transportation,
in keeping with the financial capacity of the family.
Persons obliged to support each other:
1. Spouses;
2. Legitimate ascendants and descendants;
3. Parents and their (legitimate or illegitimate) children
and the (legitimate or illegitimate) children of the
latter;
4. Brother and sisters whether full or half-blood.
Order of liability for support:
1. The spouse;
2. The descendants in the nearest degree;
3. The ascendants in the nearest degree;
4. The brothers and sisters.
Parental Authority
Rule in case of legal separation of parents:
General Rule: No child under seven (7) years of age shall be
separated from the mother (2006 Bar)
Exception: Even if the child is of tender age, the child can be
separated from the mother when the court finds compelling
reason to order otherwise.
Child Over Seven
If a minor child is already over seven years of age, the child’s
choice as to which of his parents he prefers to be under
custody shall be respected unless the parent chosen proves
to be unfit.
Dacasin vs. Dacasin (2010)
General Rule: The law provides for joint parental authority when the
spouses live together.
Exception: However, upon separation of the spouses, the mother
takes sole custody under the law if the child is below seven (7) years
old and any agreement to the contrary is void.
Masbate vs. Relucio (2018)
The choice of a child over seven (7) years of age (first paragraph of
Article 213 of the Family Code) and over ten (10) years of age (Rule
99 of the Rules of Court) shall be considered in custody disputes only
between married parents because they are, pursuant to Article 211 of
the Family Code, accorded joint parental authority over the persons
of their common children. On the other hand, this choice is not
available to an illegitimate child, much more one of tender age
(second paragraph of Article 213 of the Family Code), because sole
parental authority is given only to the mother, unless she is shown to
be unfit or unsuitable (Article 176 of the Family Code).
Substitute Parental Authority: In the absence of parents, the
following shall exercise substitute parental authority in the
order indicated:
1. Surviving grandparent;
2. Oldest brother or sister over 21 years of age, unless
unfit or disqualified.
3. Actual custodian, over 21 years of age, unless unfit
or disqualified.
4. In case of foundlings, abandoned, neglected or
abused children, and other children similarly
situated, parental authority shall be entrusted in
summary judicial proceedings to heads of children’s
homes, orphanages or similar institutions duly
accredited by the proper government agency.
Special Parental Authority: While the child is under their
supervision, instruction or custody, the following exercise
special parental authority:
1. The school;
2. School administrators;
3. Individual, entity or institution engaged in child care.
Bond: Where the market value 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.
Termination of Parental Authority
1. Permanent Termination
a. Upon the death of the parents;
b. Upon the death of the child;
c. Upon emancipation of the child;
2. Terminated Unless Revived by Final Judgment:
a. Upon adoption of the child;
b. Upon appointment of general guardian;
c. Upon judicial declaration of abandonment
of the child in a case filed for the purpose;
d. Upon final judgment of a competent court
divesting the party concerned of parental
authority; or
e. Upon judicial declaration of absence or
incapacity of person exercising parental
authority.
Grounds for Suspension of Parental Authority:
1. Conviction of crime which carries with it the penalty
of civil interdiction;
2. Treating the child with excessive harshness or
cruelty;
3. Giving the child corrupting orders, counsel or
example;
4. Compelling the child to beg;
5. Subjecting the child or allowing him to be subjected
to acts of lasciviousness, however, subjecting the
child or allowing the child to be subjected to sexual
abuse is a ground for permanent deprivation of
parental authority.
SURNAME
Married Woman May Use The Following Surnames:
1. Use her maiden surname;
2. Use her maiden surname and add her husband’s
surname; or
3. Use her husband’s surname only; or
4. Use her husband’s full name but prefix-ing it with
“MRS”
Grounds for Change of First Name or Nickname: (RHC)
 1. The petitioner finds the first name or nickname to be
Ridiculous, tainted with dishonor or extremely
difficult to write or pronounce;
2. The first name or nickname has been Habitually and
continuously used by the petitioner and he has been
publicly known by that first name or nickname in the
community;
3. The change will avoid Confusion or embarrassment.
CHANGE OF NAME
Silverio vs. Republic (2007)
The sex of a person is determined at birth, visually done by the birth
attendant (the physician or midwife) by examining the genitals of the
infant. Considering that there is no law legally recognizing sex
reassignment, the determination of a person’s sex made at the time
of his or her birth, if not attended by error is immutable.
Republic vs. Cagandahan (2008)
We are of the view that where the person is biologically or naturally
intersex the determining factor in his gender classification would be
that the individual, like respondent, having reached the age of
majority, with good reason, thinks of his or her sex.
Absence
A Person’s Absence May Be Declared If:
1. Two (2) years have elapsed without any news about
the absentee or since the receipt of the last news;
2. Five (5) years have elapsed without any news about
the absentee or since the receipt of the last news in
case the absentee has left a person in charge of the
administration of his property.
PRESUMPTION OF DEATH
Required Period of Absence for Presumptive Death:
1. For purposes of remarriage:
a. Ordinary absence - four (4) years
b. Qualified/Extra-ordinary – two (2) years
2. For opening of succession:
a. Ordinary absence – ten (10) years unless
person disappeared after the age of 75 –
five (5) years
b. Qualified absence – five (5) years
3. For all other purposes:
a. Ordinary absence – seven (7) years
b. Qualified absence – four (4) years
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 sea voyage, or
an airplane which is missing, who has not been
heard of for FOUR (4) YEARS since the loss of the
vessel;
2. A person in the armed forces who has taken part in a
war, and has been missing for Four (4) Years;
3. A person who has been in danger of death under
other circumstances and his has not been known for
Four (4) Years.
PROPERTY
Classification of Property
Immovable Property under Article 415 of the Civil Code:
1. Land, buildings, roads and constructions of all kinds
adhered to the soil;
2. Trees, plants, and growing fruits, while they are
attached to the land or form an integral part of an
immovable;
3. Everything attached to an immovable in a fixed
manner, in such a way that it cannot be separated
therefrom without breaking the material or
deterioration of the object (also known as Rex
Vinta);
4. Statues, reliefs, paintings or other objects for use or
ornamentation, placed in buildings or on lands by
the owner of the immovable in such a manner that it
reveals the intention to attach them permanently to
the tenements.
5. Machinery, receptacles, instruments or implements
intended by the owner of the tenement for an
industry or works which may be carried on in a
building or on a piece of land, and which tend
directly to meet the needs of the industry or works;
6. Animal houses, pigeon-houses, beehives, fish ponds
or breeding places of similar nature, in case their
owner has placed them or preserves with the
intention to have them permanently attached to the
land, and forming a permanent part of it; the animals
in these places are included;
7. Fertilizer actually used on a piece of land;
8. Mines, quarries, and slag dumps, while the matter
thereof forms part of the bed, and waters either
running or stagnant;
9. Docks and structures which, though floating, are
intended by their nature and object to remain at a
fixed place on a river, lake or coast; and
10. Contracts for public works, and servitudes and other
real rights over immovable property.
Movable Properties:
1. Those movable susceptible of appropriation which
are not included in Art. 415;
2. Real property which by any special provision of law is
considered as personal property;
3. Forces oof nature which are brought under control
by science;
4. In general, all things which can be transported from
place to place without impairment of the real
property to which they are fixed;
5. Obligations and actions which have for their object
movables on demandable sums;
6. Shares of stock of agricultural, commercial and
industrial entities, although they may have real
estate.
Three kinds of property of public dominion: (USD)
1. Those intended for public Use;
2. Those intended for public Service;
3. Those intended for Development of national wealth.
Who makes the conversion
Non-use does not immediately convert a property of public
dominion into patrimonial property. Conversion can be done:
1. Generally by Congress;
2. By the President through Presidential Proclamation
in cases authorized by law.
Chavez vs. National Housing Authority
One of the State’s natural resources are lands of public
domain which include reclaimed lands. There must be a law
or presidential proclamation officially classifying these
reclaimed lands as alienable and disposable and open to
disposition or concession.
Heirs of Maravilla vs. Tupaz
Classification of public lands is the exclusive prerogative of
the Executive Department through the Office of the
President. Courts have no authority to do so.
Ownership
Doctrine of Self Help
The owner or lawful possessor may use reasonable force to
repeal or prevent an actual or threatened unlawful physical
invasion or usurpation of his property.
Requisites for Doctrine of Self Help: (Bar 1972)
1. There must be actual or threatened physical invasion
or usurpation;
2. Reasonable force is exercised;
3. The force is exercised by the owner or lawful
possessor;
4. There is no delay in the exercise.
Doctrine of State Necessity
Interference by another is allowed if the same is necessary to
avert an imminent danger and the threatened damage is
much greater compared to the damage to the owner.
Accession
HIDDEN TREASURE
Any deposit of money, jewelry, or other precious objects,
which must be hidden or unknown and the lawful ownership
of which must not appear.
1. For treasure hunting with Public Land, 75% to the
government and 25% to the Permit Holder.
2. For treasure hunting within Private Land, 30% to the
government and 70% to be shared by the Permit
Holder and the Landowner.
3. For Shipwreck or Sunken Vessel Recovery, 50% to
the government and 50% to the Permit Holder.
ACCESSION
Is the right of the owner of a thing to become the owner of
everything that is produced thereby or which may be
inseparable attached or incorporated thereto, either naturally
or artificially.
Kinds of accession:
1. Accession discreta – the right of the owner of
property to whatever is produced thereby or to the
fruits of the same;
2. Accession continua – the right to acquire whatever
is attached or incorporated naturally or artificially to
the thing.

Right to Hidden Treasure:

Rule:
 If the finder is the owner of the land, building or
property on which it is found, treasure belongs to
him solely.
 If the finder is not the owner, the owner is entitled
to ½ and the finder is entitled to the other ½
provided:
o The finding was made by chance
o The finder is not a co-owner of the property
o The finder is not a trespasser
 If the finder is a trespasser, the treasure solely
belongs to the owner of the land, building or
property on which it is found.

Treasure Hunting
 In case of treasure hunting in both government and
private lands, permits should be secured from the
Department of Environment and Natural Resources
(DENR)
 Permits to the hunt “exclusively of materials of
cultural or historical values” which shall be under the
National Museum.

Rules as to sharing: The sharing of the NET PROCEEDS of the

recovered treasures shall be as follows:
Rule 1: The landowner himself is the builder, planter and sower and he used the materials of another.

LANDOWNER (L) WHO IS THE BUILDER, PLANTER, SOWER OWNER OF THE MATERIALS (OM)
(BPS)
FIRST CASE:

Good Faith Good Faith

The LO shall have the right to acquire building etc., after 1. The OM has the right to remove materials if without
paying indemnity for value of materials injury to work or without plantings or constructions
being destroyed.

2. Receive indemnity for value of materials

SECOND CASE:

Bad Faith Good Faith

The right to acquire the materials after paying value of 1. Remove materials in any event
materials and indemnity for damages but subject to the 2. Be indemnified for damages
preferred right of OM to remove
THIRD CASE:

Good Faith Bad Faith

Acquire the materials without paying indemnity Lose the materials without right to be indemnified
 FOURTH CASE:

Bad Faith Bad Faith

Both shall be considered as if acted in good faith Both shall be considered as if acted in good faith

Rule 2: The land is claimed by the (1) Landowner; and (2) Builder, Planter Sower (Art. 448, 449, 450)

LANDOWNER (LO) BUILDER, PLANTER, SOWER (BPS)

FIRST CASE: (ART. 448)

Good Faith
Good Faith
LO has the option to: 1. If the landowner exercises option (1), but BP failed to
1. Sell the land to builder, planter (BP) or collect rent pay LO for the land, the LO can have the improvement
from Sower (S), Unless the value of the land is removed.
considerably greater than building etc., in which
case, BP shall pay rent under the terms fixed by 2. In case LO exercise option 2:
the parties.
a. B has the right to retain until indemnity is paid and
2. Acquire improvements after paying indemnity cannot be required to pay rent.
which could either be: b. The LO will be entitled to the fruits while exercising his
right of retention
a. Original cost of the improvements c. B is entitled to reimbursement for expenses and not the
b. Increase in the value of the whole. market value of the improvement.
Note: The choice belongs to the landowner however, the
builder or planter can compel the landowner to make a
choice.
SECOND CASE:

LO -Good Faith BPS – Bad Faith

1. Option to: 1. Lose the improvements and plants without a right to be
a. Acquire the improvements without paying indemnified;
indemnity and collect damages; or 2. Recover necessary expenses for preservation of land;
b. Sell the land to BP or rent it to S, and collect 3. Pay damages to LO.
damages; or
c. Order demolition of work or restoration to former
condition and collect damages.

2. Pay BPS necessary expenses for preservation

THIRD CASE:

Bas Faith Good Faith

1. LO must indemnify the BPS for the improvements 1. Preferred right to remove the improvement in any
and pay for damages (unless BPS) will remove; event; and/or

2. Cannot compel BPS to buy land 2. To be indemnified for damages.

FOURTH CASE:

Bad Faith Bad Faith

Same as though both acted in good faith Same as though both acted in good faith.

Rule 3: Persons involved are (1) Landowner (LO), (2) Builder, Planter, Sower (BPS) and (3) Owner of the materials (OM):

LO BPS OM
FIRST CASE:

Good Faith
Good Faith Good Faith
1. Acquire the improvements 1. Right of retention until payment of 1. Collect value of materials
after payment of indemnity to indemnity for necessary and useful primarily from BPS and
BPS and be subsidiarily liable to expenses; subsidiarily from LO if
OM for value of materials; former is insolvent;
2. Primarily liable to pay value of
2. materials to OM. 2. Remove materials only if he
a. A. sell the land to BP except if can without injury.
its value is considerably more;
b. Acquire rentals from S
SECOND CASE:

Good Faith Good Faith Bad Faith

1. Option to: 1. Right of retention for necessary 1. Lose materials without right
 a. Acquire improvements and pay and useful expenses. ot indemnity.
indemnity to BPS
b. i. Sell to BP except if value of 2. Keep building etc., without 2. Pay damages
land is considerably more; then indemnity to OM and collect
forced lease damages from him.
ii. Rent to S.

2. Without subsidiary liability

THIRD CASE:

Good Faith Bad Faith Bad Faith

1. Option to: 1. Recover necessary expenses for 1. Recover value from BPS (in
a. Acquire improvements without land preservation. pari delicto)
paying indemnity and collect
damages 2. Loses improvements without right 2. If BPS acquired
b. Demolition or restoration plus to indemnity from LO unless LO improvements, remove
damages sells the land. materials if possible without
c. Sell to BP or collect rent from S injury;
plus damages
3. No action against LO and
2. Pay necessary expenses to BPS. may be liable for damages.
FOURTH CASE:

Bad Faith Bad Faith Bad Faith

Same as though all acted in good faith Same as though all acted in good faith Same as though all acted in good
faith
FIFTH CASE:

Bad Faith Good Faith Good Faith

1. Acquire improvements after 1. Remove improvements; 1. Remove materials if
paying indemnity and damages possible without injury;
to BPS, unless the latter decides 2. Be indemnified for damages in any
to remove; event 2. Collect value of materials
primarily from BPS;
2. Subsidiarily liable to OM for subsidiarily from LO>
materials.
SIXTH CASEL

Bad Faith Bad Faith Good Faith

1. Acquire improvements after 1. Right to retention for necessary 1. Collect value of materials primarily
indemnity; expenses; from BPS; subsidiarily from LO;

2. Subsidiarily liable to OM for 2.Pay value of materials to OM and pay him 2. Collect damages
materials; damages.
3. If BPS acquired improvements,
3. A. sell to BP except if value of remove materials
land is considerably more;

B. Rent to S.
SEVENTH CASE:

Good Faith Bad Faith Good Faith

1. Option to: 1. Recover necessary expenses; 1. Collect value of materials
a. Acquire without paying primarily from BPS with
indemnity and collect damages; 2. Loses improvements without right damages, or subsidiarily
b. Sell to BP or rent to S and of indemnity from LO unless LO from LO without damages.
collect damages; sells the land;
c. Demolish/restore and collect 2. Remove materials in any
damages; 3. Loses right of retention; event if BPS acquired
materials.
2. Pay necessary expenses to BPS. 4. Pay damages to LO;

3. Subsidiarily liable to OM 5. Primarily liable to pay value of

without damages. materials plus damages.
EIGHT CASE:

Bad Faith Good Faith Bad Faith

Acquire improvements and pay 1. Indemnity for damages; No indemnity; loses materials
indemnity and damages to BPS, unless
the latter decides to remove. 2. Remove improvements in any
event.

Alluvion or Alluvium – is the soil deposited on the estate

fronting the river bank.
Accretion – the process whereby the soil is deposited along Same rules in good faith. Same rules in good faith.
the banks of rivers.
Mixture - is the union of materials where the components
Grande vs. CA lose their identity (1986 Bar)
Accretion operates ipso jure. However, the additional area is
not covered by a Torrens title and the riparian owner must Kinds of Mixture:
register the additional area, otherwise, the additional area 1. Commixtion – mixture of solids
can be acquired by other persons through prescription. 2. Confusion – Mixture of liquids.

Avulsion – The transfer of a known portion of land from one Specification – The transformation of another’s material by
tenement to another by the force of the current. the application of labor.

In avulsion, the original owner remains to be the owner of the Rights and Obligations of the Parties in Specification
portion that is attached. However, the said owner must
remove the transported portion within two years to retain MAKER (M) OWNER OF MATERIAL
ownership. (The one who applied the (OM)
labor)
Uprooted Trees FIRST CASE:
The owner retains ownership if he makes a claim within six
(6) months. Good Faith: Good Faith:

Accession Continua with Respect to Movables 1. General Rule: 1. General Rule;

a. He retains the a. OA is entitled to
Adjunction or Conjunction – It is the union of two things material reimbursement.
belonging to different owners, in such a manner that they b. He must indemnify
cannot be separated without injury, thereby forming a single OM.
object. 2. Exception: If the 3. Exception: If
material is more material is more
Rights and Obligations of Parties in Adjunction valuable than the valuable than the
resulting thing – resulting thing-
OWNER OR PRINCIPAL (OP) OWNER OF ACCESSORY his rights in No. 1 a. He can either
(OA) above is subject to acquire the
FIRST CASE: the superior right resulting thing
of OM. subject to payment
Good Faith Good Faith to M for the value
of the labor.
1. If separation is not 1. If separation is not b. Demand
possible without possible without reimbursement for
injury. injury. the value of the
material.
General Rule: OP gets the General Rule: OA is entitled SECOND CASE:
accessory. to reimbursement.
Good Faith: Bad Faith:
Exception: If the accessory Exception: If accessory is 1. Right to retain the 1. He loses the
is much more precious, his much more precious, he accessory. accessory.
right to retain the accessory can demand the separation. 2. Right to claim the 2. He is liable for
is subject to the right of OA. damages damages
2. If separation is THIRD CASE:
2. If separation is possible without
possible without damage. Bad Faith: Good Faith
damage. 1. He is liable for 1. The right to claim
OA can demand the damages payment for value
OP can demand for separation of the accessory. 2. His right to retain of materials plus
separation. is subject to the damages, or
SECOND CASE: superior right of 2. The right to claim
OM to retain the the resulting thing
Good Faith Bad Faith resulting thing. without indemnity.
1. Right to retain the 1. He loses the FOURTH CASE:
accessory. accessory.
Bad Faith Bad Faith
2. Right to claim 2. He is liable for
damages damages. Same rule if in good faith Same rule if in good faith.
THIRD CASE:

Bad Faith Good Faith

1. He is liable for 1. The right to claim Quieting of Title
damages for damages.
It is an action that may be brough to remove or prevent a
2. His right to retain 2. The right to cloud from being cast upon title to real property or any
is subject to the demand removal interest therein. It is an equitable action in rem.
superior right of even if there is
OA to ask for injury. Requisites for Quieting of Title to Prosper:
removal. 1. The plaintiff or complainant has a legal or equitable
FOURTH CASE: right.
2. The deed, claim, encumbrance, or proceeding
Bad Faith Bad Faith claimed to be casting a cloud on his title must be
 shown to be in fact invalid or inoperative despite its
prima facie appearance of validity or legal efficacy.
Prescriptive Period:
1. If the plaintiff is in possession – imprescriptible
2. If the plaintiff is not in possession
a. Ordinary – 10 years
b. Extraordinary – 30 years
2. Such positive acts of repudiation has been made
Known to the cestui que trust of the other co-
owners;
3. The Evidence thereon must be clear and convincing;
4. He has been in open, continuous, exclusive, and
notorious Possession of the property for the period
required by law. (Period: 10 years or 30 years as the
case may be)

Co-ownership
Possession
How Acts of Co-owners Should Be Divided
Classes of Possession:
PRESERVATION MANAGEMENT ALTERATION OR 1. Possession in one’s own name - where possessor
OF THE THING OR ACTS OF claims the thing for himself.
ADMINISTRATION OWNERSHIP 2. Possession in the name of another - there is another
One co-owner Financial majority Unanimity is person for whom the thing is held by the possessor.
may decide to must approve – required. 3. Possession in the concept of owner – possessor of
perform with due co-owner the thing or right, by his actions, is considered or is
notice. representing the Note: When one believed by other person as the owner.
majority interest. of the co-owners 4. Possession in concept of holder - possessor holds it
Note: Absence of unreasonably merely to keep or enjoy it, and he acknowledges in
notice will only withholds his another a superior right which he believes to be
result in consent, the co- ownership.
reduction of owners may ask
amount to be the help of the Conflict of Possession:
reimbursed but court. In case of conflict or two or more persons are claiming to be
the act is valid. the possessors, the order of preference is as follows: (PLTJ)
1. The Present possessor shall be preferred;
Grounds for Termination of Co-ownership: (CAL-PETS) 2. If there are two possessors, the one Longer in
1. Consolidation or merger in one co-owner possession;
2. Acquisitive Prescription in favor of a third person or 3. If the dates of possession are the same, the one with
a co-owner who repudiates the co-ownership. a Title;
3. Loss or destruction of property co-owned 4. If all the conditions are equal, the fact of possession
4. Partition shall be Judicially determined; in the meantime, the
5. Expropriation thing shall be placed in judicial deposit.
6. Termination of period agreed upon by the co-owners
7. Sale of property co-owned Causes of Loss or Termination of Possession
1. By abandonment;
2. By assignment;
General Rule: The right to ask for partition is demandable by 3. By destruction or loss of the thing;
any of the co-owners as a matter of right at any time. 4. By possession of another.

Exception: When partition cannot be demanded as a matter When owner can recover from possessor in good faith with
of right: respect to movable property:
1. When there is an agreement not to partition the 1. If he has lost the thing;
property for a period not exceeding 10 years; 2. He has been deprived of it.
2. When the donor or testator prohibits partition for a
period not exceeding 20 years; Usufruct
3. When the legal nature of the community prevents
partition; Obligation of the Usufructuary
4. When partition would render the thing
unserviceable for the use for which it is intended; When the Obligation must The Obligation to be
5. When partition is prohibited by law; be Performed Performed
6. When another co-owner has possessed the property
Before entering upon the 1. To make inventory
as exclusive owner for a period sufficient to acquire
enjoyment of the property to
it by prescription.
be held in usufruct
(after notice to the
Uy vs. State of Vipa Fernandez (2017)
owner or the
Before the partition of a land or thing held in common, no individual
latter’s
or co-owner can claim title to any definite portion thereof. All that the
co-owner has is an ideal or abstract quota or proportionate share in representative)
the entire land or thing. 2. To give security;
Except:
General Rule: The co-owners cannot acquire the share of the a. For usufruct
other co-owner by acquisitive prescription. reserved by donor
b. Parental usufruct
Exception: The co-owner or trustee repudiates his share in over minor
the co-ownership. children’s property
c. When the owner
Requisites of Effective Repudiation: (UKEP) waives or excuses
1. The co-owner has performed Unequivocal acts of the giving of
repudiation amounting to ouster of cestui que trust security.
or the other co-owners; During the existence of the 1. To make ordinary
usufruct repairs at his
 expense; done in his property or the owner of the
2. To notify the dominant estate will do an act himself.
owner when the b. Negative Easement – The owner of the
need for servient estate must refrain from doing
extraordinary something which he could lawfully do if the
repairs is urgent; easement did not exist.
3. To pay annual
taxes and charges Acquisition of Easement
on the fruits; 1. By Title only – Continuous non apparent easement
4. To notify the and discontinuous easements.
owner of any act of 2. By Title and Prescription – Continuous and apparent
third persons easements.
prejudicial to the
rights of ownership The Running Of The Period of Prescription Commences As
Upon extinguishment of the 1. To return the thing Follows:
usufruct in usufruct to the 1. The easement is negative – From the notarial
owner; Exception: prohibition to the owner of the servient estate from
if the usufructuary executing an act that is contrary to the existence of
has the right of servitude.
retention for the 2. If the easement is positive – from the day the owner
advances for taxes of the dominant estate or the person who have
and extraordinary made use of the easement, commenced to exercise
expenses; it upon the servient estate.
2. To pay interest on
the amount spent Modes of Extinguishment of Easement:
for extraordinary 1. By merger in the same person of the ownership of
repairs by the the dominant and servient estate;
owner (Art. 207) 2. By non-use for 10 years;
3. To pay interest on 3. By impossibility of use;
amount of taxes on 4. By expiration of the term;
capital paid by the 5. By fulfillment of condition;
owner. 6. By renunciation of the owner of the dominant
estate;
7. By redemption.
Extinguishment of the Usufruct: (1977 and 1989 Bar)
1. By the death of the usufructuary (or the last Usufruct vs. Easement
usufructuary if there are two or more) unless
contrary intention appears; USUFRUCT EASEMENT
2. By expiration of the period for which it was The usufructuary has the Easement gives only a right
constituted, or by the fulfillment of the resolutory right to enjoy including the to specific use or burden
condition provided in the title creating the usufruct; right to the fruits and to use
3. By merger of the usufruct and ownership in the it according to its nature.
same person; Possession is transferred to There is no transfer of
4. By renunciation of the usufructuary usufructuary possession
5. By total loss of the thing in usufruct; It can be over movable or It involves immovable only
6. By termination of the right of the person constituting immovable
the usufruct; It involves one estate It involves two estates
7. By prescription. It is extinguished upon the Death of the owner of the
death of the usufructuary servient or dominant estate
unless otherwise provided does not extinguish the
Easements easement.
The right of usufruct can be Easement is inseparable
Easement of Servitude - an encumbrance imposed upon an transferred. from the estate to which it
immovable for the benefit of another immovable belonging is attached.
to a different owner, or for the benefit of a community, or of
one or more persons to whom the encumbered estate does EASEMENT OF RIGHT OF WAY
not belong.
Requisites for Compulsory Easement of Right of Way:
Classification of Easement: (SIPOL)
1. As to its exercise 1. That dominant estate is Surrounded by other
a. Continuous Easement – the use is, or may immovable;
be, incessant without the intervention of 2. There must be no adequate Outlet to a public
any act of man; highway;
b. Discontinuous Easement – used at intervals 3. There must be Payment of proper indemnity;
and depend upon the acts of man; 4. That the Isolation must not be due to the claimant’s
2. As to whether it is revealed own act;
a. Apparent Easement – made known and are 5. That the right of way claimed is at the point Least
continually kept in view by external signs prejudicial to the servient estate; not necessarily the
that reveal the use and enjoyment of the shortest distance.
same;
b. Non-apparent Easement – no external sign
of existence.
3. As to the type of burden imposed Nuisance
a. Positive Easement - The owner of the
servient estate must allow something to be
A nuisance is any act, omission, establishment, business,
condition or property, or anything else which:
1. Injures or endangers the health or safety of others;
or
2. Annoys or offends the senses;
3. Shocks, defies, or disregards decency or morality;
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.
 In contracts, the illegal and impossible conditions
annuls the obligation
 An onerous donation is void if illegal and impossible
conditions are imposed.
 Donations that are partly onerous and partly
gratuitous, is void with respect to the part that is
onerous and valid with respect to the part that is
gratuitous if illegal and impossible conditions are
imposed.

Unisource Comm. & Dev’t Corp. vs. Chung Void/Prohibited Donations:

The Supreme Court has held that the availability of an
adequate outlet to the highway does not extinguish a
voluntary easement of right of way.
Doctrine of Attractive Nuisance
One who maintains in his premises dangerous
instrumentalities 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 thereby, even if a
child is technically a trespasser in the premises.
A private person may extrajudicially abate a public and
private nuisance if the following conditions are present:
1. That demand be first made upon the owner or
possessor of the property to abate the nuisance;
2. That such demand has been rejected;
3. That the abatement be approved by the district
health officer and executed with the assistance of
the local police.
4. That the value of the destruction does not exceed
P3000.
Modes of Acquiring Ownership
OCCUPATION
The acquisition of ownership by seizing corporeal thing that
have no owner. (1997, 2007 Bar)
DONATION
An act of liberality whereby a person disposes gratuitously of
a thing or right in favor of another who accepts it.
The donation is perfected from the moment the donor knows
of the acceptance by the donee. (Art. 734)
Donation Inter Vivos vs. Donation Mortis Causa
1. Those made between persons who were guilty of
adultery or concubinage at the time of donation;
2. Those made between persons found guilty of the
same criminal offense, in consideration thereof;
3. Those made to a public officer or his wife,
descendants, and ascendants by reason of his office;
4. Donations made to those who are incapacitated to
succeed by will;
5. Donations between the spouses during the marriage,
whether the donations be made directly or
indirectly, except moderate ones given on the
occasion of any family rejoicing, and;
6. Donations between those who are living together as
husband and wife without valid marriage, whether
the donation be made directly or indirectly.
Formalities of a Donation:
1. Donations of movable property
a. If 5,000 or less – It may either be (1) oral
but in which case there must be
simultaneous delivery of property donated,
or (2) in writing, whether in a public or
private instrument.
b. If the value exceeds P5,000 – both the
donation and acceptance must be in writing
(either in public or private instrument)
2. Donation of immovable property – The donation
must be in public instrument. The value is
immaterial.
Acceptance. The acceptance may be (1) in the same public
instrument containing the donation, or (2) in a separate
public instrument.
Reversion- stipulation that the property shall return to the
donor.

Donation Inter Vivos Donation Mortis Causa

It takes effect during the
lifetime of the donor
The formalities of simple
donation should be
followed
It is generally irrevocable
It must be accepted during
the lifetime of the donor
The donee becomes the
owner of the property and
can exercise the rights of an
owner during the lifetime of
the donor (subject to
limitations that may be
imposed)
The donation is not affected
even if the donor survives
the donee.
Conditional or Unconditional Donation
 Impossible or illegal conditions in simple and
remuneratory donations shall be considered as NOT
IMPOSED..
It takes effect only upon the PRESCRIPTION
death of the donor
The formalities of a will
should be followed TYPES OF PRESCRIPTION
It is revocable during the
lifetime of the donor upon Acquisitive Prescription:
the will of the donor 1. Ordinary
a. Movable – 4 years
Acceptance is made after
b. Immovable – 10 years
the death of the donor
2. Extraordinary
The donee becomes the
a. Movable – 8 years
owner of the property only
b. Immovable – 30 years
after the death of the
donor.
Prescriptive Periods:
Actions Movable Immovable
Action to recover 8 years from 30 years
the time
The transfer is void if the possession is
donor survives the donee. lost
Foreclosure of Mortgage 10 years
All other actions whose 5 years
periods are not fixed in the
code
1. Upon written 10 years
contract
2. Upon an obligation
 created by law; and 2. Designation of persons, institutions or
3. Upon a judgment establishments to which such property or sums are
1. Upon an oral 6 years to be given or applied.
contract
2. Upon a quasi-
Formalities of a Notarial Will (AW-SAMPAL)
contract
1. In Writing;
1. Upon injury to the 4 years
rights of plaintiff 2. Executed in a Language or dialect known to the
2. Upon quasi-delict testator;
3. Revoke or reduce 3. Subscription – Subscribed at the end thereof by the
donation based on testator himself or by testators name written by
the birth, some other person in his presence and by his
appearance or express direction;
adoption of a child; 4. Attested and subscribed by 3 or more credible
4. Revoke donation Witnesses in the presence of testator and one
based on non-
another;
compliance with a
condition;
5. Marginal Signature – All of the pages are signed,
5. Rescission; except in the last, on the left margin by the testator
6. Annul a contract or the person requested by him to write his name
1. Forcible entry and 1 year and the instrumental witnesses;
detainer 6. Page numbering – All the pages are numbered
2. Defamation correlatively in letters placed on the upper part of
3. Recover possession each page;
de facto 7. Attestation clause executed by the witnesses; and
8. Acknowledgment – Property acknowledged before a
notary public by the testator and the said witnesses.

Nera vs. Rimando (1994 and 2007 Bar)

The true test of presence of the testator and the witnesses in
SUCCESSION the execution of a will is not whether they actually saw each
other sign, but whether they might have seen each other
sign, had they chosen to do so, considering their mental and
General Provisions physical condition and position with relation to each other at
the moment of inscription of each signature.

Succession – 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.
Devisees – persons to whom gifts of real properties are given
by will.
Legatees – person to whom gifts of personal properties are
given by will.
Formalities in a Holographic Will (WDSL)
1. Entirely Written by the hand of the testator;
2. Entirely Dated by the hand of the testator;
3. Entirely Signed by the hand of the testator;
4. Executed in the Language or dialect known to the
testator.
Probate of Holographic Will
1. Uncontested – at least one (1) witness who knows
the handwriting and signature of the testator.
2. Contested – at least three (3) credible witness.

Testamentary Succession Kalaw vs. Relova

Will - 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 effect after his death.
General Rule: The will covers only properties of the testator
at the time of the making of the will
In case of any insertion, cancellation, erasure or alteration in
a holographic will, the testator must authenticate the same
by his full signature. If this is not complied with, the
corrections, insertions or alterations-not the will itself- are
invalid.
The original will (without insertion) is however valid.

Exception: Properties acquired after making of the will shall

pass to the heirs in the following cases:
1. If the intention to include properties acquired after
the making of the will expressly appear by the will
that such was his intention;
2. The properties acquired may also be covered by the
will through republication; if the will is republished,
the properties at the time of republication are
covered or deemed disposed in the will;
3. Property not owned by the testator but disposed in
the will: (i) where the testator thought that the
property belongs to him or her; (ii) the testator
acquires ownership of the same property
subsequently.
Matters that can be entrusted to third persons
After the testator has exercised his testamentary discretion,
he may entrust to third persons the:
1. Manner of distribution of specific property or sums
of money that he may leave in general to specified
classes or causes;
Testamentary Capacity – refers to the ability as well as the
power to make a will.
Requisites of Testamentary Capacity
1. The testator must be at least 18 years of age;
2. The testator must be of sound mind.
To be of sound mind it is not necessary that the testator is in
full possession of all his reasoning faculties or that his mind
be wholly unbroken, unimpaired or unshattered by disease,
injury or other cause.
Test of Soundness of Mind: (Code: CON)
Soundness of mind means the ability to know at the time of
making of a will:
1. The nature of the estate to be disposed of;
2. The proper objects of his bounty; and
3. The character of the testamentary act.
General Rule: It is presumed that the testator is of sound
mind.
Exception: Unless:
1. One month or less, before making his will, the
testator was publicly known to be insane;
2. The testator is under guardianship.
TESTATOR WITH DISABILITY
1. Testator is Deaf or Deaf-Mute – he must personally
read if he can; if he cannot read he shall designate
TWO PERSONS to read it and communicate to him
the contents of the will.
2. If the testator is BLIND – the will must be read twice
(by a witness and the notary).
Qualifications of a Witness: (1962 Bar)
For a witness to be considered qualified to be a witness to a
notarial will, the witness:
1. Must be at least 18 years of age;
2. Must be of sound mind;
3. Must be able to read and write;
4. Must not be blind, deaf or dumb;
5. Must be domiciled in the Philippines;
6. Must not have been convicted of falsification of a
document, perjury, or false testimony.
CODICIL
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 any disposition made in the original will is explained,
added to or altered.
If the first will is revoked by a second will, the EXPRESS
revocation of the second will does NOT revive the first will.
Revival through a will or codicil is necessary for such purpose.
(Art. 837 NCC)
The will is revived if: (1) the revocation of the first will is
implied not express or (2) a third will or codicil revives the
first will. (Palaganas vs. Palaganas)
Rules of Preference Among Legacies and Devisees: When the
question of preference is exclusively among the legatees and
devisees themselves and the estate is not sufficient to cover
all legacies or devises, their payment shall be made in the
following order:
1. Remuneratory legacies or devises;
2. Legacies or devises declared by the testator to be
preferential;
3. Legacies for support;
4. Legacies for education;
5. Legacies or devises of a specific, determinate thing
which forms part of the estate; and
6. All others pro rata.
PRETERITION
The omission of one, some, or all of the compulsory heirs in
the direct line, whether living at the time of the execution of
the will or born after the death of the testator, shall annul the
institution of heir.
Note: Omission of a surviving spouse is not preterition.

REVOCATION SUBSTITUTION
The appointment of another heir so that he may enter into
A will may be revoked by the testator at any time before his the inheritance in default of the heir originally instituted.
death. Any waiver or restriction of his right is void. (Art. 828,
NCC) Fideicommissary Substitution
Revocation by Physical Destruction Requisites:
The will is revoked if it is: 1. It must be expressly made;
1. Burned 2. There must be a first heir (fiduciary) who is to take
2. Torn the property upon the death of the testator;
3. Cancelled 3. There must be a second heir (fideicommissary) who
4. Obliterated; or is one degree from the First heir who will take the
5. Physically destroyed property after the specified the specified period or
upon the death of the fiduciary;
Doctrine of Absolute Revocation 4. The fiduciary must (1) preserve the property (2)
Art. 832: A revocation made in a subsequent will shall take transmit it after the lapse of the period to the
effect, even if the new will should become inoperative by fideicommissary.
reason of the incapacity of the heirs, devisees or legatees 5. Both the fiduciary and the fideicommissary must be
designated therein, or by their renunciation. living and must be qualified to be an heir at the time
of the death of the testator.
Doctrine of Dependent Relative Revocation
If a testator revokes a will with a present intention of making Disposition Captatoria - Any disposition made upon a
a new one immediately and as a substitute, and the new law condition that the heir shall make some provision in his will in
is not made or if made, fails to take effect for any reason, the favor of the testator or of any other person. The same is void.
old will remains effective and the revocation inoperative.
LEGITIMES
Grounds for Disallowance of a Will (F2UMIS)
The list is exclusive: Table of Legitimes
1. Formalities required by law have not been complied Legends:
with; LCD = Legitimate Children and Descendants
2. Will was executed through Force or under duress, or ICD = Illegitimate Children and Descendants
the influence of fear, or threats; SS = Surviving Spouse
3. Will was procured by Undue and improper pressure LPA = Legitimate Parents or Ascendants
and influence on the part of the beneficiary or of IP = Illegitimate Parents
some other person; AC = Adopted Child
4. Testator acted by Mistake or did not intend that the
instrument he signed should be his will at the time of Survivor Legitime
affixing his signature thereto; LCD 1/2
5. Testator was Insane, or otherwise mentally 1/2;
incapable of making a will at the time of its 1 LCD;
Same as that of one
execution; and SS
Legitimate Children
6. Signature of the testator was procured by fraud. 1/2;
2 or more LCD;
Same as that of each
REVIVAL SS
Legitimate Children
LCD; 1/2;
 ICD 1/2 of 1 LC/D gratuitous title-donation, remission, testate or
1/2; intestate successor.
LCD;
1/4;
SS;
1/2 of 1 LC COLLATION
ICD
It is the act by virtue of which descendants or other
LPA 1/2 compulsory heirs bring into the common mass, the property
LPA; 1/2; which they received from the decedent during the latter’s
ICD 1/2 lifetime – through donation or gratuitous title.
LPA; 1/2;
SS 1/4 DISINHERITANCE
LPA; 1/2;
SS; 1/8; Requisites for valid disinheritance
ICD 1/4 1. The disinheritance must be effected through a will;
ICD 1/2 2. The legal cause thereof shall be specified in the will;
SS; 1/3; 3. The cause must be one of those authorized by law;
ICD 1/3 4. The truth of the cause must be proven, of
1. 1/3 (If marriage is contradicted;
in articulo mortis 5. The heir disinherited must be designated in such a
and manner there can be no doubt as to his identity; and
testator/spouse 6. The disinheritance must be unconditional and total.
died within 3
months after the Grounds for Disinheritance:
marriage; 1. Disinheritance of Children and Descendants
2. 1/2 when they (Legitimate or Illegitimate):
have been living as a. When a child or descendant has been found
husband and wife guilty of an attempt against the life of the
SS for more than 5 testator, testator’s spouse, ascendant or
years before descendant;
marriage in b. When the child or descendant has accused
articulo mortis the testator of a crime for which the law
(even if the prescribes imprisonment for six years or
testator died more, if the accusation has been
within 3 months groundless;
after marriage); c. When child or descendant has been found
3. 1/2 If marriage is guilty of adultery or concubinage with the
not in articulo spouse of the testator;
mortis d. When child or descendant by fraud,
violence, intimidation, or undue influence
IP 1/2
causes the testator to make a will or chance
Excluded;
one already made;
It depends
IP; e. A refusal without justifiable cause to
(Children inherit in the
Any child (LCD/ICD) support the parent or ascendant who
amounts established in the
disinherits such child or descendant;
foregoing rules)
f. Maltreatment of the testator by word or
IP; 1/4;
deed, by the child or descendant;
SS 1/4
g. When the child or descendant leads a
LPA/IP of the adopted; 1/2;
dishonorable or disgraceful life;
Adopters 1/2
h. Conviction of a crime which carries with it
AC/
Same share as LCD the penalty of civil interdiction.
LCD
2. Disinheritance of Parents of Ascendants
a. When parents have abandoned their
RESERVA TRONCAL children or induced their daughters to live a
The ascendant who inherits from his descendant any corrupt or immoral life, or attempted
property which the latter may have acquired by gratuitous against their virtue;
title from another ascendant, or a brother or sister, is obliged b. When parent or ascendant has been
to reserve such property as he may have acquired by convicted of an attempt against the life of
operation of law for the benefit of relatives who are within the testator, the testator’s spouse,
the third degree and who belong to the line from which said descendant, or ascendants;
property came. c. When the parent or ascendant has accused
the testator of a crime for which the law
Persons Involved In Reserva Troncal: prescribes imprisonment for 6 years or
1. Reservista or Reservor – the person obliged to more, of the accusation has been found to
reserve; the legitimate ascendant who inherits by be false;
operation of law a property from his descendant- d. When the parent or ascendant has been
propositus convicted of adultery or concubinage with
2. Reservatarios or Reservees – the person for whom the spouse of the testator;
the property is reserved; relative within the third e. When the parent or ascendant by fraud,
degree counted from the descendant-propositus, violence, intimidation, or undue influence
and belonging to the line from which the property causes the testator to make a will or to
came. change one already made;
3. Propositus or Prepusitus – the descendant who f. The loss of parental authority for causes
previously received the reserved property by specified in this code;
gratuitous title and died without issue (legitimate g. The refusal to support the children or
descendants), making his other ascendant descendants without justifiable cause; or
(reservista) inherit by operation of law.
4. Origin – the ascendant, or brother or sister from
whom the propositus acquired the property by
 h. An attempt by one of the parents against surviving spouse the estate
the life of the other, unless there has been Surviving spouse = ½ of the
a reconciliation between them. estate
3. Disinheritance of Spouse Legitimate parents, Legitimate parents = ½
a. When the spouse has been convicted of an surviving spouse and Surviving spouse = ¼
attempt against the life of the testator, the illegitimate children Illegitimate children = ¼
testator’s descendants, or ascendants; Illegitimate children alone The whole estate
b. When the spouse has accused the testator Illegitimate children and Illegitimate children = ½
of a crime for which the law prescribes surviving spouse Surviving spouse = ½
imprisonment for 6 years or more, and the Surviving spouse alone The whole estate
accusation has been found to be false; Surviving spouse and No article governing, but
c. When the spouse by fraud, violence, illegitimate parents Art. 997 may be applied,
intimidation, or undue influence causes the thus:
testator to make a will or change one Surviving spouse = ½
already; Illegitimate parents = ½
d. When the spouse has given cause for legal Surviving spouse and Surviving spouse = ½
separation; legitimate brothers and Legitimate brothers, sisters,
e. When the spouse has given grounds for the sisters, nephews and nieces nephews, nieces = 1/2
loss of parental authority; and Surviving spouse and Surviving spouse =1/2
f. Unjustifiable refusal to support the children illegitimate brothers and Illegitimate brothers,
or the other spouse. sisters, nephews and nieces sisters, nephews and nieces
=½
Effect of Reconciliation Illegitimate parents alone The whole estate
The offended party-testator is deprived of the right to Illegitimate parents and Illegitimate parents =
disinherit if reconciliation occurs before the disinheritance is children of any kind excluded
made. If the reconciliation occurs after the disinheritance is Children
made, the disinheritance is rendered ineffectual. a. child alone (legitimate or
illegitimate) = whole estate
LEGACIES AND DEVISES b. Legitimate and
illegitimate children = each
Order of Preference When Estate is Insufficient: illegitimate gets ½ share of
1. Remuneratory legacies or devises; one legitimate child
2. Legacies or devises declared by the testator to be
Legitimate brothers and The whole estate, with a
preferential;
sisters alone brother/sister of the half-
3. Legacies for support;
blood inheriting ½ of the
4. Legacies for education;
share of a brother/sister of
5. Legacies or devises of a specific determinate thing
the full blood
which forms a part of the estate;
6. All other pro rata.
PROVISIONS COMMON TO TESTATE AND
LEGAL OR INTESTATE SUCCESSION INTESTATE SUCCESSION

Curtain Bar Rule – The illegitimate family cannot inherit by
intestate succession from the legitimate family and vice
versa.
TABLE OF INTESTATE SHARES
Legitimate Children alone The whole State divided
equally
Legitimate children and The whole estate, each
illegitimate children illegitimate child getting ½
share of one legitimate
child
Legitimate children and The whole estate divided
surviving spouse equally (the surviving
spouse counted as one
legitimate child)
Legitimate Children, The whole estate, the
surviving spouse and surviving spouse being
illegitimate children counted as one legitimate
child and each illegitimate
child getting ½ share of one
legitimate child.
Legitimate Parents alone The whole estate, divided
equally
Legitimate ascendants The whole estate, observing
(other than parents) alone in proper cases, the rule of
division by line
Legitimate Parents and Legitimate parents = ½ of
Illegitimate Children the estate
Illegitimate children = ½ of
the estate
Legitimate parents and Legitimate parents = ½ of
Persons Disqualified to Succeed:
1. Due to Undue Influence
a. 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;
b. 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.
c. A guardian with respect to testamentary
dispositions given by ward in his favor
before the final accounts of the
guardianship has been approved, even if
the testator should die after the approval
thereof.
d. 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.
e. Any physician, surgeon, nurse, health officer
or druggist who took care of the testator
during his last illness.
f. Individuals, associations, and corporations
not permitted by law to inherit.
2. Due to Public Policy and Morals
a. Testamentary dispositions made between
persons who were guilty of adultery or
concubinage at the time of the donation;
b. Testamentary dispositions made between
persons found guilty of the same criminal
offense, in consideration thereof;
 c. Testamentary dispositions made to a public
officer or his wife, descendants and
ascendants, by reason of his office.
3. Due to Acts of Unworthiness
a. Parents who have abandoned their children
or induced their daughters to lead a corrupt
or immoral life, or attempted against their
virtue;
b. Any person who has been convicted of an
attempt against the life of the testator, his
or her spouse, descendants, or ascendants;
c. Any person who has accused the testator of
a crime for which the law prescribes
imprisonment for six years or more, if the
accusation has been found groundless;
d. Any heir of full age who, having knowledge
of the violent death of the testator, should
fail to report it to an officer of the law
within a month, unless the authorities have
already taken action; this prohibition shall
not apply to cases wherein, according to
law, there is no obligation to make an
accusation;
e. Any person convicted of adultery or
concubinage with the spouse of the
testator;
f. Any person who by fraud, violence,
intimidation, or undue influence should
cause the testator to make a will or to
change one already made;
g. Any person who by the same means
prevents another from making a will, or
from revoking one already made, or who
supplants, conceals, or alters the latter’s
will;
h. Any person who falsifies or forges a
supposed will of the decedent.
Treyes vs. Larlar (2020)
Unless there is a pending 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 the recovery of property,
or any other action in the enforcement of their ownership rights
acquired by virtue of succession without the necessity of prior and
separate judicial declaration of their status as such.
OBLIGATIONS
General Provisions
Obligation – a juridical necessity to give, to do, or not to do.
Elements /Requisites of an obligation: (2012 Bar)
1. The Vinculum Juris or Juridical Tie which is the
efficient cause established by the various sources of
obligations;
2. Object which is the prestation or conduct, required
to be observed (to give, to do or not to do); and
3. The Subject-Persons who, viewed from the
demandability of the obligations are the active
(oblige/creditor) and passive (obligor/debtor).
Negotiorum Gestio
It is a juridical relation which arises when a person voluntarily
takes charge of the agency or management of another’s
abandoned or neglected business or property without the
owner’s authority.
Solutio Indebiti
It is a juridical relation which arises when something is
received when there is no right to demand it, and it was
unduly delivered through mistake.
Nature and Effect of Obligation
Kinds of Delay or Mora
1. Mora solvendi – delay on the part of the obligor or
debtor (2012 Bar)
2. Mora accipiende or creditoris – delay on the part of
creditor or oblige
3. Compensatio Morae – both parties are in delay
(2012 Bar)
General Rule: Demand is indispensable before the obligor
may be considered in delay.
Exceptions: (UTOL-R)
1. When the Obligation so declares;
2. When the Law expressly so declares;
3. When Time is of the essence – when from the nature
and circumstances of the obligation it appears that
the designation of the time when the thing is to be
delivered or the service is to be rendered was a
controlling motive for the establishment of the
contract;
4. When demand would be Useless as when the obligor
has rendered it beyond his power to perform; or
5. In Reciprocal obligations when one of the parties
failed to comply.
Delay in Reciprocal Obligations
In reciprocal obligations, neither party incurs in delay if the
other party does not comply or is not ready to comply in a
proper manner with what is incumbent upon him. Delay
begins from the moment one of the parties fulfills his
obligation.
Requisites for Fortuitous Event: In order for fortuitous event
to be accepted as a justification for non-performance of an
obligation, the following must be present:
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 fulfill his obligation in a
normal manner; and
4. The obligor must be free from any participation in
the aggravation of the injury resulting to the
creditor.
When There is Liability Even if There is Fortuitous Event: In
an obligation to deliver or to give, the debtor shall be liable
for any loss due to fortuitous event which occurred before
delivery in the following instances:
1. The obligor or debtor delays;
2. The obligor promised the same thing to two or more
persons who do not have the same interest;
3. When there is stipulation or agreement that the
obligor will not be excused;
4. If there is assumption of risk as required by the
nature of obligation;
5. When the thing to be delivered is generic;
6. Where the obligor is also at fault, the fortuitous
event is in effect humanized;
7. The nature of obligation makes the obligor liable;
8. The law makes the obligor liable;
9. Liability from delict.
Effect of Loss, Deterioration, or Improvement of
Determinate Thing Prior to Fulfillment of Obligation:
 If lost without the fault of the debtor, the obligation
is extinguished.
 If lost through the fault of the debtor, the debtor’s
obligation is converted to payment of damages.
  If it deteriorates without the fault of the debtor, the
impairment is borne by the creditor.
 If it deteriorates through the fault of the debtor, the
creditor may choose between the rescission of the
obligation and its fulfillment with damages in either
case.
 If it is improved by its nature, or by time, the
improvement shall inure to the benefit of the
creditor.
 If it is improved by the expense of the debtor, the
debtor may remove the improvement if the removal
can be done without injuring the thing due.
Kinds of Obligations
Suspensive and Resolutory Condition (1975, 1988 and 1992
Bar)
1. Suspensive Condition – The acquisition of rights
shall depend upon the happening of an event that
constitute the condition.
2. Resolutory Condition – The loss or extinguishment
of rights already acquired depends upon the
happening of the event that constitutes the
condition. It is a condition subsequent.
Potestative Condition – A condition is potestative if the
happening of the future and uncertain event that constitutes
the condition is dependent upon the sole will of one party.
Effect of Suspensive Potestative Conditions (1997, 2000 Bar)
1. Will of the debtor – Void
2. Will of the creditor – Valid
Effect of Resolutory Potestative Condition (2000 Bar)
1. Will of the debtor – Valid
2. Will of the creditor – Valid
Casual Condition – one where the fulfillment is dependent on
chance and/or the will of a third person.
Mixed Condition – present if the same depends partly upon
the will of the parties and partly upon chance or the will of a
third person.
Doctrine of Constructive Fulfillment of Suspensive Condition
The condition shall be deemed fulfilled when the obligor
voluntarily prevents its fulfillment.
When the Debtor Loses Benefit of the Period: (IFIVA)
1. When after the obligation has been contracted, he
becomes Insolvent, unless he gives a guaranty or
security for the debt;
2. When he does not Furnish to the creditor the
guaranties or securities which he has promised;
3. When by his own act he has Impaired said guaranties
or securities after their establishment, and when
through a fortuitous event they disappear, unless he
immediately gives new ones equally.
4. When the debtor Violates any undertaking in
consideration of which the creditor agreed to the
period; and
5. When the debtor attempts to Abscond.
When Court May Fix A Period
General Rule: Court are without power to fix a period.
Exceptions:
1. If the obligation does not fix a period but from its
nature and circumstances it can be inferred that a
period was intended:
2. If the duration of the period depends upon the will
of the debtor.
3. If the debtor binds himself to pay when his means
permit him to do so.
Alternative Obligation – present when there are two or more
prestations but the debtor is obliged to completely perform
only one.
Who Will Make The Choice:
General Rule: The debtor is the one who has the right to
choose.
Exception:
1. There is an agreement that the choice is granted to
the creditor.
2. There is an agreement that a third person will make
a choice.
Facultative Obligations – refer to a situation where only one
prestation was agreed upon and due but the debtor may
render another in substitution.
JOINT AND SOLIDARY OBLIGATION
Solidary Obligation – one in which each of the debtors is
liable for the entire obligation and each of the creditors is
entitled to demand the satisfaction of the whole obligation
from any or all of the debtors. (1988 Bar)
Defenses Available to a Solidary Debtor (NP-ShOt)
1. Defenses derived from the Nature of the obligation –
total defense; all solidary debtors are benefited.
2. Defenses Personal to him – total and partial defense.
3. Defenses pertaining to his own Share – partial
defense; only the debtor is benefited.
4. Defenses personal to the Others, but only as regards
that part of the debt for which the latter are
responsible – partial defense only for the debtor-
defendant.
Joint Obligation – one in which each debtor is liable only for
proportionate part of the debt and the creditor is entitled to
demand only a proportionate part of the credit from each
debtor.
General Rule: The presumption is that the obligation is joint.
Exception: The obligation is solidary only if:
1. There is an agreement that the obligation is solidary;
2. When the nature of the obligation contemplates
solidary obligation;
3. When the law provides for solidary liability.
Extinguishment of Obligation
BY PAYMENT OR PERFORMANCE
Payment by Third Persons
General Rule: The creditor is not bound to accept payment or
performance by third person.
Exceptions:
1. When made by third person who has interest in the
fulfillment of the obligation; and
2. Contrary stipulation.
Rights of a third person who made the payment:
1. When payment was made by knowledge and
consent of the debtor:
a. Reimbursement of the entire amount paid.
b. Can be subrogated to all rights of the
creditor.
2. If payment was made without the knowledge or
against the will of the debtor:
a. Can recover only insofar as the payment has
been beneficial to the debtor.
DATION IN PAYMENT
The delivery and transmission of ownership of a thing by the 5. The creditors must accept the abandonment in their
debtor to the creditor as an accepted equivalent of the favor.
performance of the obligation.
Dation In Payment Cession or Assignment
Commercial Papers Ownership of the thing The creditors do not
General Rule: delivered is transferred to acquire ownership but must
 Delivery of any of the commercial papers does not the creditor. sell the thing and apply the
produce the effect of payment. proceeds to the debt
 Obligation is not deemed extinguished by the The debt is extinguished The debts are extinguished
acceptance of the check until it is encashed. only up to the extent
covered by the proceeds of
Exception to the rule that delivery of commercial paper or the sale
mercantile documents does not produce the effect of There is only one creditor There are two or more
payment are as follows: creditors
1. When the paper or document is encashed Insolvency of the debtor is Insolvency of the debtor is
2. When the paper or document is impaired due to the not required required.
fault of the creditor.

Effect of Inflation TENDER OF PAYMENT AND CONSIGNATION

General Rule: The value of the currency at the time of the
establishment of the obligation shall be the basis of payment.
Exceptions:
1. When there is agreement to the contrary
2. In case of extraordinary inflation or deflation
Extraordinary Deflation or Inflation
Extraordinary inflation or deflation exists when there is a
decrease or increase in the purchasing power of the
Philippine currency which is unusual or beyond the common
fluctuation in the value of said currency, and such increase or
decrease could not have been reasonably foreseen or was
manifestly beyond the contemplation of the parties at the
time of establishment of the obligation.
APPLICATION OF PAYMENT
Requisites of Application of Payments:
1. There are two or more debts;
2. The creditor and debtor in such obligations are the
same;
3. The obligations must be of the same kind;
4. The obligations are all due and demandable;
5. The payment made is not sufficient to pay all
obligations.
Tender of Payment – It is the definitive act of offering the
creditor what is due him or her, together with the demand
that the creditor accept the same.
Consignation – It is the deposit in court by the debtor of the
object of the obligation if the creditor does not want to or
cannot receive the same.
Requisites of Valid Consignation:
1. The debt must be due;
2. The consignation of the obligation had been made
because the creditor to whom tender of payment
was made refused to accept without cause;
3. Previous notice of the consignation had been given
to the person interested in the performance of the
obligation;
4. The amount due was placed in the disposal of the
court; and
5. After the consignation has been made the person
interested must be notified thereof.
When Consignation Without Tender of Payment is Sufficient
General Rule: For consignation to be valid, there must be
prior tender of payment

Rules on Application
1. The debtor shall designate the debt to which
payment shall be applied.
2. In the event the debtor failed to exercise the right to
elect, the creditor may choose to which among the
debts the payment is applied.
3. If there is no designated debt in accordance with the
above stated rules, application shall be deemed
made by operation of law as follows:
a. Payment shall be applied to the interest
first before application to the principal;
b. Payment shall be applied to:
i. The debt that is most onerous;
ii. If debts are of the same terms and
conditions and burden (one is not
more onerous than others),
payment shall be applied in
proportion of the debt.
PAYMENT BY CESSION
Consists in abandonment by the debtor of all his properties
for the benefit of the creditors, so that, from their proceeds,
the latter may obtain satisfaction of the credits.
Exception: Consignation alone may release the debtor from
his responsibility, in the following cases:
1. When creditor is absent;
2. When creditor is unknown;
3. When creditor does not appear at the place of
payment;
4. When creditor is incapacitated to receive the
payment at the time it is due;
5. When, without just cause, creditor refuses to give
support;
6. When two or more persons claim the same right to
collect; and
7. When the title of the obligation has been lost.
CONDONATION OR REMISSION OF THE DEBT
An act of liberality by which, the obligee, who receives no
price of equivalent thereof, renounces the enforcement of
the obligation which is extinguished in its entirety or in part
or aspect of the same to which the remission refers.
CONFUSION OR MERGER
Takes place from the time the characters of the creditor and
debtor are merged in the same person.

Requisites of Payment by Cession: COMPENSATION

1. There must be two or more debts;
2. There must be two or more creditors;
3. There must be one debtor who is insolvent;
4. The debtor must abandon his properties in favor of
the creditors; and
Mode of extinguishing to the concurrent amount the
obligations of persons who in their own right and as principals
are reciprocally debtors and creditors of each other.
Elements of Legal Compensation:
 1. That each one of the obligors be bound principally, 2. Perfection
and that he be at the same time a principal creditor 3. Consummation
of each other; (1981 Bar)
2. That both debts consist in a sum of money, or if the Metrorail Transit Devt vs. Gammon Phils
things due are consumable, they be of the same A contract is perfected when both parties have consented to the
kind, and also of the same quality if the latter have object and cause of the contract. There is consent when the offer of
been stated; one party is absolutely accepted by the other party. In bidding
3. That the two debts be due; (2008 and 2012 Bar) contracts, the Court has ruled that the award of the contract to the
4. That they be liquidated and demandable; bidder is an acceptance of the bidder's offer. Its effect is to perfect a
5. That over neither of them there be any retention or contract between the bidder and the contractor upon notice of the
award to the bidder. Thus, the award of a contract to a bidder
controversy, commenced by third persons and
perfects the contract. Failure to sign the physical contract does not
communicated in due time to the debtor.
affect the contract's existence or the obligations arising from it. The
meeting of the minds need not always be put in writing, and the fact
NOVATION that the documents have not yet been signed or notarized does not
The extinguishment of an obligation by a subsequent one mean that the contract has not been perfected. A binding contract
which terminates it, either by changing its object or principal may exist even if the signatures have not yet been affixed because
conditions, by substituting a new debtor in place of an on old acceptance may be express or implied.
one, or by subrogating a third person to the rights of the
creditor. Dolo Causante Dolo Incidente
Definition Those deception or Those which are
Expromission – the initiative for change does not come from misrepresentations not serious in
- and may even be made without the knowledge of – the of a serious character and
debtor since it consists of a third person’s assumption of character employed without which the
obligation. by one party and other party would
without which the still have entered
Delegacion – The debtor offers, and the creditor accepts, a other party would into the contract.
third person who consents to the substitution and assumes not have entered
the obligation. into contract.
Effects Its effects are the Obliges the person
nullity of the employing it to pay
Expromission vs. Delegacion
contracts and damages.
Expromission Delegacion indemnification of
The initiative does not The initiative comes from damages
come from the debtor. the debtor.
Consent of the debtor is not Consent of the debtor, the
present and not even creditor and the third Obligatory Force of Contract
necessary. person are present. Obligations arising from contracts have the force of law
The debtor is released. The debtor is released. between the contracting parties and should be complied with
Insolvency of the new Insolvency of the new in good faith.
debtor before or after the debtor revives the
novation does not revive obligation of the debtor if: Autonomy of Contracts or Freedom of Contracts
the obligation of the debtor (a) insolvency is anterior – Means that the contracting parties are accorded the liberality
(2011 Bar). existing at the time of and freedom to establish such stipulations, clauses, terms,
novation; and (b) of public and conditions as they may deem convenient, provided the
knowledge or known to the same are not contrary to law, morals, good customs, public
debtor. order or public policy.

Subrogation – It is the transfer of all the rights of the creditor Mutuality of Contracts
to a third person. Means that the contract must bind both the contracting
parties; its validity or compliance cannot be left to the will of
General Rule: Legal subrogation is not presumed. one of them.

Exceptions: Legal subrogation is presumed in the following: Limso vs. PNB

1. When a creditor pays another creditor who is
preferred, even without the debtor’s knowledge;
2. When a third person is 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 fulfillment of the obligation
pays, without prejudice to the effects of confusion as
to the latter’s share.
There is no mutuality of contracts when the determination or
imposition of interest rates is at the sole discretion of a party to the
contract. Further, escalation clauses in contracts are void when they
allow the creditor to unilaterally adjust the interest rates without the
consent of the debtor.
Contracts of Adhesion
One in which one of the parties imposes a ready-made form
of contract, which the other party may accept or reject, but
which the latter cannot modify.

Relativity of Contracts
CONTRACTS Contracts can only bind the parties who entered into it, and it
cannot favor or prejudice a third person, even if he is aware
of such contract and has acted with such knowledge thereof.

GENERAL PROVISIONS Essential Requisites of Contract:

1. Consent of the contracting parties;
2. Object certain which is the subject matter of the
Contract – A meeting of minds between two persons
contract;
whereby one binds himself, with respect to the other, to give
3. Cause of the obligation which is established.
something or to render some service.
Cognition Theory – states that the acceptance takes effect
Stages of Contract:
from the time the offeror learns about the acceptance.
1. Negotiation
 be in writing.

FORMALITY
REFORMATION OF INSTRUMENT
General Rule: Contracts shall be obligatory in whatever form  Involves the filing of the case in court in order to
they have been entered into, provided all the essential have the contract to reflect the real intent of the
requisites for their validity are present. parties.

Exception: However, when the law requires that a contract Requisites:

be in some form in order that it may be valid or enforceable, 1. There must have been a meeting of minds of the
or that the contract be proved in a certain way, that parties to the contract;
requirement is absolute and indispensable. 2. The instrument does not express the true intention
of the parties; and
Contract Formality Required 3. The failure of the instrument to express the true
Donation of Real Property Public instrument intention of the parties is due to mistake, fraud,
Donation of personal In writing inequitable conduct or accident.
property exceeding P5,000
Stipulation that interest Must be in writing Prescriptive Period: 10 years
should be paid on loans
Agency to sell land Must be in writing General Rule: Mistake must be mutual
Partnership where real A signed inventory must be
property is contributed attached to the public Exception: Mistake need not be mutual in the following
instrument that evidences instances:
the partnership contract 1. If one party was mistaken and the other party acted
An agreement limiting the Must be in writing fraudulently or inequitably;
diligence of common 2. When one party was mistaken and the other party
carriers over goods to less knew or believed that the instrument did not state
than extraordinary diligence their real agreement, but concealed that fact from
Contract of Antichresis The principal amount and the former.
the interest to be paid must

Defective Contracts

Distinction of Defective Contracts

RESCISSIBLE VOIDABLE UNENFORCEABLE VOID

What is the defect? 1. Lesion, or 1. Incapacity or 1. In excess or 1. Absence of
2. Transfer in 2. Consent is without requisites or
fraud of vitiated by authority, 2. Illicit nature
creditors fraud, 2. Violation of
3. Transfer by violence, Statute of
insolvent intimidation, Frauds, or
before due undue 3. Incapacity of
date. influence. both parties
What is the effect? Binding and Valid and binding until Cannot be enforced No effect is produced
enforceable unless annulled unless ratified or
rescinded waived
Can it be ratified? Cannot be ratified. Can be ratified Can be ratified. Cannot be ratified.
Who can assail the Contracting party and Contracting parties Contracting parties Contracting parties and
contract? third persons who are only. only. third persons whose
prejudiced. interest are affected.
What is the Four Years. Four years. No prescriptive Period Action for declaration
prescriptive period? is provided because the that the contract is void
same is not applicable. is imprescriptible.
Prescription cannot
cure the defect.

Rescissible Contracts
Those where the essential requisites of a contract exist and
the contract should have been valid but by reason of injury or
damage to third persons, such as creditors, the contract may
be rescinded.
Statute of Frauds – that provision in the Civil Code which
enumerates certain contracts which are unenforceable by
action, unless the same, or some note or memorandum
thereof, be in writing and subscribed by the party charged or
by his agent.
Lesion – the injury suffered by one who does not receive a
full equivalent for what he gives in a commutative contract.
Requisites of Lesion:
1. The lesion that was suffered is more than one-fourth
(1/4) of the value of the thing;
2. The contract was entered into by a guardian or a
representative of an absentee;
3. The contract was entered into in behalf of the ward
or the absentee involving the ward or absentee’s
property; and
4. The contract does not require approval of the court
and/or there is no approval of the court.
Note:
 if the court approved the contract, the contract is
valid and not rescissible. The defect is cured by the
court approval.
 If court approval is required before the guardian can
enter into contract, and the guardian into such
contract without court approval, the contract is
 unenforceable. (not rescissible on the ground of
lesion) Kinds of Delivery:
1. Actual delivery – actual physical transfer of control
Prescriptive Period and possession to the vendee-buyer.
The action to claim rescission must be commenced within 2. Constructive delivery – includes:
four years. a. Execution of Public Instrument;
b. Traditio Longa Manu – where there is
Voidable Contracts delivery by mere consent.
c. Tradition Brevi Manu – the buyer is already
Prescriptive Period in possession in some other capacity as in
 4 Years the case where the buyer is the lessee,
depositary, or borrower.
d. Tradition symbolica – where the vendor
delivers the symbol of possession of the
ESTOPPEL movables; with regard to movable property,
its delivery may also be made by the
delivery of the keys of the place or
Estoppel by Laches – a person who failed or neglected to depositary where it is stored or kept.
assert a right for an unreasonable and unexplained length of e. Traditio constitutum possessorium – the
time is presumed to have abandoned or otherwise declined vendor remains in possession in some other
to assert such right. capacity for the vendee as in the case
where the vendor will now be the agent or
depositary of the vendee; and
SPECIAL CONTRACTS f. Negotiation of the negotiable document of
title – the document of title like a bill of
lading represents title to and possession of
Sales the property covered by the document.

DOUBLE SALE (ART. 1544)

Contract of Sale - By the contract of sale, one of the 1. Movables – The first possessor is preferred – the
contracting parties obligates himself to transfer the ownership shall be transferred to the person who
ownership and to deliver a determinate thing, and the other may have first taken possession thereof in good
to pay therefore a price certain in money or its equivalent. faith.
2. Immovable property (1987, 1989, 2001, 2004)
Essential Elements of Contract of Sale a. The buyer who first registered in good faith
1. Consent/Meeting of the Minds – refers to the – the ownership shall belong to the person
consent on the part of the seller to transfer and who acquiring it who in good faith first
deliver and on the buyer to pay. recorded it in the registry of property.
2. Object/Subject – refers to the determinate thing b. First possessor – should there be no
which is the object of the contract. inscription or registration, the ownership
3. Cause/Consideration – refers to a price certain in shall pertain to the person who in good
money or its equivalent. faith was first in possession.
c. Oldest title -In the absence of inscription
Contract of Sale vs. Contract to Sell and possessor, the property shall be
considered owned by the person who, in
Basis Contract of Sale Contract to Sell good faith, present the oldest title.
Ownership is
transferred to the buyer
Ownership is transferred upon SALE ON APPROVAL
As upon delivery of the
full payment of the purchase
regards object to him. When the goods are delivered to the buyer on approval or on
price.
transfer trial or on satisfaction, or other similar terms, the ownership
of Note: Vendor has lost
Note: Prior to full payment, therein passes to the buyer:
ownershi and cannot recover
ownership is retained by the 1. When he signifies his approval or acceptance to the
p ownership until and
seller.
unless the contract is seller or does any other act adopting the transaction;
resolved or rescinded. 2. If he does not signify his approval or acceptance to
There are two contracts:
the seller, but retains the goods without giving
1. The contract to sell
As to
There is only one 2. The deed of absolute notice of rejection within the stipulated time, or if no
numbers
contract executed sale time has been fixed, on the expiration of a
of
contracts
between the seller and reasonable time.
the buyer. Note: The principal contract is
involved
executed after full payment of
the purchase price. Option Contract – A contract by which the owner of the
Non-payment of the property agrees with another person that he shall have the
Full payment of the price is a
price is a resolutory
positive suspensive condition. right to buy his property at a fixed price within a certain time.
condition.
It is binding upon the promisor if the promise is supported by
Payment Note: Failure to fully pay the
as a
Vendor losses
price is not a breach but an
a consideration distinct from the price. An option contract is
ownership over the likewise a separate and distinct contract from a contract of
condition event that prevents the
property and cannot
recover it until and
obligation of the vendor to sale.
convey title from becoming
unless the contract is
effective.
resolved or rescinded.
1. Specific
Option Money Earnest Money
performance
1. Rescission Money given is distinct Part of the purchase price
Remedies ;
; or
available 2. Rescission; consideration for an option
2. Damages
or contract
3. Damages
Applies to a sale not yet Given only where there is
perfected already a sale
When the would-be buyer When earnest money is
DELIVERY
gives the option money, he given, the buyer is bound to
 is not required to buy. pay the balance.

Right of First Refusal

It is a contractual grant, not of the sale of a property, but of
the first priority to buy the property in the event the owner
sells the same.

Remedies of Unpaid Seller

1. Lien on the goods or right to retain them for the
price while he is in possession of them;
2. Right of stoppage in transit – in case of insolvency of
the buyer after the seller has parted with the
possession of them.
3. A right of resale;
4. A right to rescind the sale.

WARRANTIES

No affirmation of the value of the thing, nor any statement

purporting to be a statement of the seller’s opinion only, shall
be construed as a warranty unless the seller made such
affirmation or statement as an expert and it was relied upon
by the buyer.

Redhibition – The avoidance of a sale on account of some

vice or defect in the thing sold, which renders its use
impossible or so inconvenient and imperfect that it must be
supposed that the buyer would not have purchased it had he
known of the vice or defect.

RECTO LAW (ART. 1484)

Provides for remedies of a vendor in the sale of personal
property by installments.

Remedies of Seller if Price Not Paid in Sale of Personal

Property on Installments: (1984 and 1989 Bar)
1. Exact fulfillment of the obligation should the vendee
fail to pay (action for collection of the price) –
Available even if failure to pay covers only a single
installment.
2. Rescission or cancellation of the sale, if the failure to
pay covers two or more installments.
3. Foreclosure of the chattel mortgage, if the failure to
pay covers two or more installments.
Note: The remedies are alternative, not cumulative.
Foreclosure of the chattel mortgage on the things sold shall
bar recovery of any deficiency.
Pacto De Retro Sale
Sale with a right to repurchase, also known as conventional
redemption, takes place when the vendor reserves the right
to repurchase the thing sold, with the obligation of returning
to the vendee the price of the sale, the expenses of the
contract and any other legitimate payments made by reason
of the sale, the necessary and useful expenses made on the
thing sold and the obligation of complying with such other
stipulations which may have been agreed upon.

MACEDA LAW (R.A. 6552) EXTINGUISHMENT OF SALE

The Maceda Law applies to contracts of sale of real state on
installment payments, including residential condominium Sale are extinguished by:
apartments. It covers contracts to sell. (1999 and 2014 Bar) 1. The same causes as all other obligations;
2. Conventional redemption;
3. Legal redemption

Conventional Redemption
By express agreement, the seller is given the right to
repurchase the thing sold. Conventional redemption is legal
but it is not favored because it affects the stability of
ownership.

Period (Art. 1606)

The right of redemption should be exercised within the
following period:
1. Within period agreed upon which should not exceed
10 years from the date of the contract;
2. In the absence of an express agreement, the seller
should redeem within 4 years from the date of
contract.

Note: If a civil action was filed to establish that the contract is

a true sale with a right to repurchase, the vendor may still
exercise the right to repurchase within 30 days from the time
final judgment was rendered in a civil action.
Equitable Mortgage – Defined as a mortgage which, although
lacking in some formality, or forms or words, or other
requisites demanded by the statute, nevertheless reveals the
intention of the parties to charge real property as security for
a debt.
Legal Redemption
The right to be subrogated, upon the same terms and
conditions stipulated in the contract, in the place of one who
acquires a thing by purchase or dation in payment, or by any
other transaction whereby ownership is transmitted by
onerous title.
Examples of Legal Redemption
1. A co-owner of a thing may exercise the right of
redemption in case the shares of all the other co-
owners or any of them, are sold to a third person.
2. The owner 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.
3. If several persons, jointly and in the same contract,
should sell an undivided immovable with a right of
repurchase, none of them may exercise the right for
more than his respective share. The same rule shall
apply if the person who sold an immovable alone has
left several heirs, in which case each of the latter
may only redeem the part which he may have
acquired.
TRUSTS
-Legal relationship between one person having equitable
ownership in a certain property and another person owning
the legal title to such property.
Express trust – one which come into existence only by the
execution of an intention to create it by the trustor of the
parties.
Implied Trust – Those which, without being express, are
deductible from the nature of the transaction as matters of
intent, or which are superinduced on the transaction by
operation of law, as matters of equity, independently of
particular intention of parties.
Kinds of Implied Trust
1. Resulting Trust – raised by implication of law and
presumed to have been contemplated by the
parties; there is an intention to create a trust
although not in fact created by agreement. It results
from the words and acts of the parties expressly or
impliedly evincing a direct intention to create a trust
although there is no meeting of minds to perfect a
contract.
2. Constructive Trust – the parties do not intend,
expressly or impliedly to create a trust but it is
created by force of law by reason of the demands of
equity and justice (2007 Bar).
No express trusts concerning an immovable or any interest
therein may be proved by parol/oral evidence. (Art. 1443,
NCC)
RECONVEYANCE
Express Trust – imprescriptible; the property held in trust can
be recovered at any time.
a. Exception: If there is repudiation of the
express trust, the action for reconveyance
prescribes 10 years from the repudiation of
the trust.
Implied Trust – ten (10) years from the time the trust is
created if the plaintiff is not in possession of the property.
a. If in possession – the action does not
prescribe.
Yared vs. Tiongco
If the implied trust involves registration of the property in the name of
the trustee, the action for reconveyance must be filed within 10 years
from the issuance of the Torrens Title over the property.
Uy vs. CA
When the action for reconveyance is based on a void contract, as
when there was no consent on the part of the alleged vendor or when
the sale contract is forged, the action is imprescriptible. This action is
not based on implied or express trust.
Aniceto Uy vs. CA
The law creates the obligation of the trustee to reconvey the property
and its title in favor of the true owner. the prescriptive period for the
reconveyance of fraudulently registered real property is ten (10)
years reckoned from the date of the issuance of the certificate of title.
This ten-year prescriptive period begins to run from the date the
adverse party repudiates the implied trust, which repudiation takes
place when the adverse party registers the land. An exception to this
rule is when the party seeking reconveyance based on implied or
constructive trust is in actual, continuous and peaceful possession of
the property involved. Prescription does not commence to run
against him because the action would be in the nature of a suit for
quieting of title, an action that is imprescriptible.
ACQUISITIVE PRESCRIPTION
General Rule: in an express trust, the trustee cannot acquire
the property held in trust through prescription. The
possession of the trustee is not possession in concept of an
owner.
Exception: if there is conclusive evidence of a clear and
unequivocal act of repudiation of the trust made known to
the cestui que trust.
LEASE
Assignment
The lessee cannot assign the lease without the consent of the
lessor, unless there is a stipulation to the contrary.
Sublease
A lessee can sublease the property that he is leasing in whole
or in part if there is no express prohibition in the contract.
If the lessee subleases the property in violation of the
stipulation prohibiting the same, the lessor is entitled to
rescind the contract judicially or extrajudicially.
Effects of Sale of Property On Lease
 Lease that is not recorded in the registry of
property – The purchaser of a piece of land may
terminate the lease.
o Exceptions:
 When there is stipulation to the
contrary in the contract of sale
 When the purchaser in bad faith
knows or ought to know the
existence of the lease
 When the sale is fictitious – which
is presumed if it is not recorded in
the Registry of Property.
 If the lease is registered or annotated in the Torrens
Title – The buyer should respect the lease; the lease
has a real right.
Implied New Lease (Tacita Reconduccion)
Refers to the right of the lessee to continue enjoying the
material or de facto possession of the thing leased within a
period of time fixed by law. During its existence, the lessee
can prevent the lessor from evicting him from the disputed
premises.
Requisites of Implied New Lease
1. The term of the original contract of lease has
expired;
2. The lessor has not given the lessee a notice to
vacate; and
3. The lessee continued enjoying the thing leased for
15 days with the acquiescence of the lessor.
RIGHT REGARDING IMPROVEMENTS
Useful Improvements. If the lessee makes in good faith,
useful improvements which are suitable to the use for which
the lease is intended, without altering the form or substance
of the property leased, the lessor has the option either:
1. To pay the lessee, upon the termination of the lease,
one-half of the value of the improvements at that
time.
2. Refuse to reimburse said amount but allow the
lessee to remove the improvements even though the
principal thing may suffer damage thereby. The
lessee shall not, however, cause any more
impairment upon the property leased than is
necessary.
Not possessor in good faith. A lessee is not entitled to the
right of retention.
2. If the agent exceeds the limits of his authority
without giving such party sufficient notice of his
powers; or
3. If he contracts in his own name (even if he, in fact,
has authority)
Doctrine of Imputed Knowledge
Knowledge of the agent is imputed to the principal even
though the agent never communicated such knowledge to
the principal.
Doctrine of Apparent Authority
 The principal is liable only as to third persons who
has been led reasonably to believe by the conduct of
the principal that such actual authority exists,
although none has been given.
 Anybody who makes it appear that the agent is
authorized is bound by the acts of the agent.
Commission Agent (Factor) – one who is engaged in the
business of receiving, handling, and selling of goods for
commission whether in his own name or in that of another.
Guarantee Commission – This is a commission that is given in
addition to the ordinary commission. The guarantee is given
so that he can bear the risk of collection and pay the principal
the proceeds of the sale on the same terms agreed upon with
the purchaser (2004 Bar)

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 choose to retain them by paying their value at the
time the lease is extinguished.

AGENCY
By the contract of agency, a person binds himself to render
some service or to do something in representation or on
behalf of another, with the consent or authority of the latter.

Citibank N.A. vs. Chua (1993)

It is a fundamental principle in the law of agency that every
delegation of authority, whether general or special, carries with it,
unless the contrary be expressed, implied authority to do all of those
acts, naturally and ordinarily done in such cases, which are
reasonably necessary and proper to be done in order to carry into
effect the main authority conferred.

General Rule: An agent cannot acquire by purchase the

property whose administration or sale may be entrusted to
him.

Exception: Unless the consent of the principal has been given.

Villaluz vs. Landbank

The agent may appoint a substitute (sub-agent) if the
principal has not prohibited him from doing so. The principal
is then bound by the act of the substitute.

The agent and the substitute shall be responsible for the
acts of the substitute:
1. When the agent was not given the power to appoint
one;
2. When the agent was given such power, but without
designating the person, and the person appointed
was notoriously incompetent or insolvent.
General Rule: The principal is bound by the acts of the agent
within the bounds of the agent’s authority. It is the principal
who will be liable to third persons.
Exceptions:
1. If he expressly binds himself;
When void as to the agent
The contract is void if these concur:
1. The contract was entered into by the agent who
exceeded his authority, and;
2. The party with whom the agent contracted is aware
of the limits of the powers granted by the principal.
Effect if both the Agent and the Principal transacted:
When two persons contract with regard to the same thing,
one of them with the agent and the other with the principal,
and the two contracts are incompatible with each other, that
of prior date shall be preferred, without prejudice to the
provisions of Art. 1544.
If the agent has acted in good faith, the principal shall be
liable for damages to the third person whose contract must
be rejected. If the agent acted in bad faith, he alone shall be
responsible.
Agency coupled with interest
If it has been constituted: (i) in the common interest of the
principal and of the agent – the agent has interest distinct
from the principal; or (ii) in the interest of a third person who
has accepted the stipulation in his favor.
Note: This type of agency remain in full force and effect even
after the death of the principal; it cannot be revoke except
for cause.
COMPROMISES
 A Compromise is a contract whereby the parties, by
making reciprocal concessions, avoid a litigation or
put an end to one already commenced.
LOAN
Contract of Loan
By the contract of loan, one of the parties, called the bailor or
lender delivers to another called the borrower or bailee,
either something not consumable so that the latter may use
the same for a certain time and return or money or
consumable so that he may consume it with the obligation to
pay the same amount of the same kind and quality.
Kinds of Loans:
1. Commodatum – one of the parties delivers to
another something not consumable so that the latter
may use the same for a certain time.
2. Simple Loan or Mutuum – one of the parties delivers
to another money or other consumable thing, upon
condition that the same amount of the same kind
and quality shall be paid.
COMMODATUM
 The bailee is obliged to pay for the ordinary
expenses for the use or preservation of the thing
loaned. However, the bailee does not answer for the
deterioration of the thing loaned due only to the use
thereof and without his fault. (Art. 1941, NCC) (Bar
2013)
 The bailee in commodatum acquires the use of the
thing loaned but not its fruits.
 Commodatum is essentially gratuitous. If any
compensation is to be paid by him who acquires the
use, the contract ceases to be commodatum (it
becomes a lease)
The bailee is liable for the loss of the thing even if it should
be through fortuitous event in the following cases:
1. If he devotes the thing to any purpose different from
that for which it has been loaned. (1993 Bar)
2. If he keeps it longer than the period stipulated, or
after the accomplishment of the use for which the
commodatum has been constituted;
3. If the thing loaned has been delivered with appraisal
of its value, unless there is a stipulation exempting
the bailee from responsibility in case of fortuitous
event;
4. If he lends or leases the thing to a third person who
is not a member of his household; (2013 Bar)
5. If, being able to save either the thing borrowed or
his own thing, he chose to save the latter. (1983 Bar)
SIMPLE LOAN OR MUTUUM
Monetary interest is due only if the following concurs:
1. Payment of interest is agreed upon;
2. The stipulation to pay interest must be in writing;
3. The rate must not be against the law or against
morals and public policy.
DEPOSIT
There is deposit when one person delivers and the other
person receives a thing belonging to another, with the
obligation of safely keeping it and returning the same.
General Rule: A deposit is a gratuitous contract
Exceptions:
1. When there is an agreement to the contrary
2. The depositary is engaged in the business of storing
goods.
A depositary is liable for the loss of the thing through
fortuitous event in the following cases:
1. If it is so stipulated;
2. If he uses the thing without the depositary’s
permission;
3. If he delays its return;
4. If he allows others to use it, even though he himself
may have been authorized to use the same.
Necessary Deposit
A deposit is necessary:
1. When it is made in compliance with a legal
obligation
2. When it takes place on the occasion of any calamity,
such as fire, storm, flood, pillage, shipwreck, or other
similar events;
3. The deposit of effects made by the travelers in
hotels or ins shall also be regarded as necessary.
4. Deposit to the hotelkeeper for the vehicles, animals,
and articles which have been introduced or placed in
the annexes of the hotel;
5. The rules on necessary deposit applies to hand-
carried baggage of passengers in contract of
common carriers. However, it is believed that
although the rule on necessary deposit applies, the
contract remains to be a common carriage and not a
necessary deposit.
Hotels and Inns
The deposit of effects made by the travelers in hotels or inns
shall also be regarded as necessary. The keepers of hotels or
inns shall be responsible for them as depositaries, provided:
1. The notice was given to them, or to their employees,
of the effects brought by the guests; and
2. That on the part of the guests, they take the
precautions which said hotel-keepers or their
substitute advised relative to the care and vigilance
of their effects.
Liability for Acts of Servants and Employees
The hotel or inn-keeper shall be liable for the loss of, or injury
to the personal property of the guests caused by the servants
or employees of the keepers of hotels or inns as well as
stranger but not that which may proceed from any force
majeure.
Theft and Robber
General Rule: The act of thief or robber, who has entere the
hotel is not deemed force majeure.
Exception: The act of thief or robber is a defense if it is done
with use of arms or through an irresistible force. Hence, the
depositary is not liable under this exception.
QUASI-CONTRACTS

NEGOTIORUM GESTIO
 Arises when a person voluntarily takes charge of the
management of the business or property of another
without any power from the latter.
Obligations of Officious Manager (1992 Bar)
1. To continue the management until the termination
of the affair and its incidents;
2. To perform his duties with all the diligence of a good
father of a family;
3. To pay the damages which through his fault or
negligence may be suffered by the owner of the
property or business under management;
4. To be liable for the acts of the delegate if the
officious manager delegates to another person all or
some of his duties;
5. To be liable for damages caused by fortuitous event
in exceptional cases;
6. To be personally liable for contracts which he had
entered into with third persons, even though he
acted in the name of the owner.
Liability for Fortuitous Event: The officious manager is liable
for fortuitous event in the following cases: (1993 Bar)
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;
5. If he manifestly unfit to carry on the management;
a. Exception: when the management was
assumed to save property or business from
imminent danger.
6. If by his intervention, he prevented a more
competent person from taking up the management.
a. Exception: when the management was
assumed to save property or business from
imminent danger.
Liability For Contracts:
General Rule: The officious manager is personally liable for
contracts which he has entered into with third persons, even
though he acted in the name of the owner. There shall be
right of action between the owner and third persons.
Exception: The officious manager shall not be liable if:
1. If the owner has expressly or tacitly ratified
management; or
2. When the contract refers to things pertaining to the
owner of the business.
Obligations of the Owner: The owner of the property or
business shall: (1992 Bar)
1. Be liable for obligations incurred in his interest;
2. Reimburse the officious manager for the necessary
and useful expenses; and
3. Reimburse the officious manager for the damages
which the latter may have suffered in the
performance of his duties.
SOLUTIO INDEBITI
 It is a quasi-contract that arises if something is
received when there is no right to demand it, and it
was unduly delivered through mistake, the
obligation to return it arises. (1977 Bar)
Requisites of Solutio Indebiti (1952, 1980 and 2012 Bar)
1. There is delivery to the payee;
2. The payee has no right to demand what was
delivered; and
3. The delivery was through mistake.
Prescription
An action for quasi-contract prescribes in six (6) years.
TORTS
It is an act or omission producing an injury to another,
without need of any previous existing lawful relation of which
the said act or omission may be said to be a natural
outgrowth or incident.
QUASI-DELICT
Whoever by act or omission causes damage to another, there
being fault or negligence, is obliged to pay for the damage
done. Such fault or negligence, if there is no pre-existing
contractual relation between the parties, is quasi-delict or
culpa-aquiliana. (Art. 2176, NCC)
Requisites of Quasi-delict: (1988 and 2012 Bar)
1. There must be an act or omission constituting fault
or negligence;
2. Damage caused by the said act or omission; and
3. Casual relation between the damage and the act or
omission.
Negligence
The omission of that degree of diligence which is required by
the nature of the obligation and corresponding to the
circumstances of persons, time and place.
Emergency Rule
An individual who suddenly finds himself in a situation of
danger and is required to act without much time to consider
the best means that may be adopted to avoid the impending
danger is not guilty of negligence if he fails to undertake what
subsequently and upon reflection may appear to be a better
solution, unless the emergency was brought by his own
negligence.
Res Ipsa Loquitor
Where the thing that causes injury is shown to be under the
management of the defendant, and the accident is such as in
the ordinary course of things does not happen if those who
have the management use proper care, it affords reasonable
evidence
Contributory Negligence
Art. 2179
If the plaintiff’s negligence was only contributory, the
immediate and proximate cause of the injury being the
defendant’s lack of due care, the plaintiff may recover
damages, but the courts shall mitigate the damages to be
awarded.
Imputed Contributory Negligence
The general rule is that if an employer is injured by the
negligence of a third person but there is concurring
contributory negligence of his own employee or agent, the
latter’s negligence is imputed to his superior and there will be
mitigation of a liability of the tortfeasor.
Proximate Cause – It is that cause which, in natural and
continuous sequence, unbroken by any efficient intervening
cause, produces the injury, and without which the result
would not have occurred.
Calalas vs. CA (2000)
The doctrine of proximate cause is applicable only in actions for
quasi-delict, not in actions involving breach of contract.
Africa vs. Caltex
The primary cause remains to be the proximate cause even if
there is an intervening cause which merely cooperated with
the primary cause and which did not break the chain of
causation.
Doctrine of Last Clear Chance (1990 and 2007 Bar)
The law is that the person who had 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.
VICARIOUS LIABILITY
St. Francis High School vs. CA/ Filamer Christian Institute vs.
IAC
It is not necessary that the employer is engaged in some
industry or business. However, the employer is liable only if
the employee was performing his assigned task at the time
the injury was caused or is acting in furtherance of the
interest of the employer at the time of the infliction of the
injury or damage.
Arambulo vs. Manila Electric Co.
The Supreme Court has held that the defense of due diligence
may be raised by the employer only in civil action for quasi-
delict and not in a criminal case where the employer’s
subsidiary liability is sought to be enforced in case of
conviction.
DAMAGES
Damnum absque injuria
Under this principle, the legitimate exercise of a person’s
right, even if it causes loss to another, does not automatically
result in actionable injury.
Kinds of Damages: (MENTAL)
1. Moral
2. Exemplary
3. Nominal
4. Temperate
5. Actual or Compensatory
6. Liquidated
Kinds of Actual Damages:
1. Daño emergente – Loss of what a person already
possess.
2. Lucro cesante – Loss of a benefit that the plaintiff
failed to receive.
Doctrine of Avoidable Consequences
The party suffering loss or injury must exercise diligence of a
good father of a family to minimize the damages resulting
from the act or omission in question.
Temperate Damages
More than nominal but less than compensatory damages,
may be recovered when the court finds that some pecuniary
loss has been suffered but its amount cannot, from the
nature of the case, be provided with certainty (1991 Bar).
Liquidated Damages – are those agreed upon by the parties
to a contract, to be paid in case of breach thereof.
Exemplary Damages – imposed as a deterrent against or as a
negative incentive to curb socially deleterious actions.
INTERESTS
When the obligation consists in payment of sum of money
(i.e, a loan or forbearance of money, goods, credits or
judgment):
General Rule: That which may have been stipulated in
writing, provided it is not excessive or unconscionable.
Exception: In the absence of stipulation, the rate of interest,
it shall be 6% per annum (legal interest)
Legal Interest Rate
- 6% to be computed from default.
When an obligation, not constituting a loan or forbearance of
money, is breached, an interest on the amount of damages
awarded may be imposed at the discretion of the court at the
rate of 6% per annum.
Note: Twelve percent (12%) legal interest per annum shall
apply only until June 30, 2013. From July 1, 2013, the rate of
six percent (6%) per annum shall be the prevailing rate of
interest when applicable. (Nacar vs. Gallery Frames, 2013)
LAND TITLES AND DEEDS
Regalian Doctrine
All lands of whatever classification and other natural
resources not otherwise appearing to be clearly within
private ownership are presumed to belong to the State which
is the source of any asserted right to ownership of land.
TORRENS SYSTEM
General Rule: RTCs have plenary jurisdiction over land
registration cases.
Exceptions: MeTC, MTCC, MTC and MCTC have jurisdiction to
hear and determine cadastral or land registration cases in the
following instances:
1. Where the land sought to be registered is not the
subject of controversy; or
2. Where the land is contested but the value thereof
does not exceed 100,000 such value to be
ascertained by the affidavit of the claimant or by the
agreement of the respective claimants, if there be
more than one, or from the corresponding tax
declaration of the real property.
CERTIFICATE OF TITLE
Casimiro Development Corp vs. Mateo
Registration under the Torrens System, not being a mode of
acquiring ownership, does not create or vest title. The
Torrens certificate of title is merely an evidence of ownership
or title in the particular property described therein.
Mirror Doctrine
All persons dealing with a property covered by Torrens
certificate of title are not required to go beyond what
appears on the face of the title. Where there is nothing on
the certificate of title to indicate any cloud or vice on the
ownership or any encumbrance thereon, the purchaser is not
required to explore further than what the torrens title upon
its face indicates in quest for any hidden defect or inchoate
right that may defeat his right thereto.
General Rule: Mirror doctrine applies when title over a land is
registered under the Torrens System.
Exception Mirror doctrine cannot be invoked where:
1. The purchaser or mortgagee is a bank or financing
institution;
2. The owner still holds a valid and existing certificate
of title covering the same property because the law
protects the lawful holder of a registered title over
the transfer of a vendor bereft of any transmissible
right;
3. The purchaser is in bad faith;
 4. The purchaser purchases land with a certificate of
title containing a notice of lis pendens
5. There are sufficiently strong indications to impel
closer inquiry into the location, boundaries and
condition of the lot;
6. The purchaser had full knowledge of flaws and
defects in the title; or
7. A person buys land not from the registered owner
but from whose rights to the land has been merely
annotated on the certificate of title.
Amoguis vs. Ballado
While a person may rely on the correctness of the certificate of title,
and he or she is not obliged to go beyond the four (4) corners of the
certificate to determine the condition of the property, this rule 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 sufficient facts to induce a reasonably
prudent man to inquire into the status of the title of the property in
litigation.
Remedy in case a person lost his certificate of title
1. Reconstitution of Certificate of Title – If what is lost
is the original certificate of title (OCT) or transfer
certificate of title (TCT).
2. Replacement of lost duplicate certificate – If what is
lost is the duplicate of OCT or TCT.
Requisites for the issuance of an order for reconstitution:
1. That the certificate of title has been lost or
destroyed;
2. That the documents presented by petitioner are
sufficient and proper to warrant reconstitution of
the lost or destroyed certificate of title;
3. That the petitioner is the registered owner of the
property or had an interest therein.
4. That the certificate of title was in force at the time it
was lost or destroyed; and
5. That the description, area and boundaries of the
property are substantially the same as those
contained in the lost or destroyed certificate of title.
ORIGINAL REGISTRATION
Jurisdiction or venue where the application can be filed
If the application covers a single parcel of land situated
within:
1. Only one city or province:
a. RTC or MTC, as the case may be, of the
province or city where the land is situated.
2. Two or more provinces or cities;
a. When boundaries are not defined - In the
RTC or MTC of the place where it is declared
for taxation purposes.
b. When boundaries are defined – Separate
plan for each portion must be made by a
surveyor and a separate application for
each lot must be filed with the appropriate
RTC or MTC.
Note: MeTC, MCTC, and MTC has jurisdiction to decide
cadastral and land registration cases, provided:
1. There is no controversy or opposition (uncontested
land); or
2. Value of contested lots does not exceed P100,000.
In other cases, the RTC has jurisdiction.
Who may apply for registration?
1. Those who by themselves or their predecessors-in-
interest have been in open, continuous, exclusive,
and notorious possession and occupation of
alienable and disposable lands of a public domain
under a bona fide claim of ownership since June 12,
1945 or earlier. (OCENPO)
2. Those who have acquired ownership over private
lands by prescription under the provisions of existing
laws;
3. Those who have acquired ownership of private lands
or abandoned river beds by right of accession or
accretion under the existing laws; and
4. Those who have acquired ownership of land by any
other manner provided by law.
Republic vs. De Joson
The land of public domain, to be the subject of appropriation,
must be declared alienable and disposable either by the
President or the Secretary of DENR. Unless public land is
shown to have been reclassified or alienated to a private
person by the State, it remains part of the inalienable public
domain. Indeed, occupation thereof in the concept of owner,
no matter how long, cannot ripen into ownership and be
registered as a title.
General Rule: Private corporations or associations may not
hold alienable lands of public domain except by lease, for a
period not exceeding 25 years, renewable for not more than
25 years, and not to exceed 1000 hectares in area. (Sec. 3,
Art. XII, 1987 Constitution)
Exception: Where at the time the corporation acquired land,
its predecessors-in-interest had been in possession and
occupation thereof and in the manner and for the period
prescribed by law as to entitle him to registration in his name,
then the proscription against corporation acquiring alienable
lands of the public domain except through lease does not
apply for the land was no longer public land but private
property.
CADASTRAL LAND REGISTRATION
It is a proceeding in rem, initiated by the filing of the petition
for registration by the government, not by the persons
claiming ownership of the land subject thereof, and the latter
are, on the pain of losing their claim thereto, in effect
compelled to go to court to make known their claim or
interest therein, and to substantiate such claim or interest.
WRIT OF POSSESSION
 An order by which the sheriff is commanded to place
a person in possession of a real or personal property.
Gawaran vs. Intermediate Appellate Court
The writ is imprescriptible. A writ of demolition is but a
complement of the writ of possession.
Prescription of Writ of Possession
General Rule: A petition for the issuance of a writ of
possession does not prescribe.
Exception: If a party has once made use of the benefit of the
benefit of a writ of possession, he may not ask for it again, if
afterwards he loses possession of the property obtained by
virtue of the original writ.
SUBSEQUENT REGISTRATION
 It is where incidental matters after original
registration may be brought before the land
registration court by way of motion or petition filed
by the registered owner or a party in interest.
VOLUNTARY DEALING
Effect of Registration of such Voluntary Dealings:
1. Creates a lien that attaches to the property in favor
of the mortgagee; and
 2. Constitutes constructive notice of his interest in the on execution but after the levy is made, the validity of the execution
property to the whole world. sale should be upheld because it retroacts to the date of levy.

Spouses Guevarra vs. The Commoner Lending Corporation, Exception: Knowledge of an unregistered sale is equivalent to
2015 registration. If a party presents evidentiary proof that the judgment
In an extra-judicial foreclosure of a registered land acquired creditor knowledge of a valid sale between the judgment debtor an
under a free patent, the mortgager may redeem the property an innocent third party, that knowledge would have the effect of
registration on the judgment creditor.
within:
 Two (2) Years from the date of foreclosure if the
land is mortgaged to a rural bank;
NON-REGISTRABLE PROPERTIES
 One (1) Year from the registration of the certificate
of sale if the land is mortgaged to parties other than - These are properties of public dominion which,
the rural banks. under existing legislation, are not the subject of
private ownership and are reserved for public
If the mortgagor fails to exercise such right, he or his heirs purposes.
may still repurchase the property within five (5) years from
the expiration of the redemption period. Non-Registrable Lands
1. Property of public domain or those intended for
INVOLUNTARY DEALINGS public use, public service or development of the
national wealth;
Involuntary Dealings That Must Be Registered: 2. Forest or timber lands;
1. Attachment 3. Water sheds
2. Adverse claim; and 4. Mangrove swamps
3. Notice of lis pendens 5. Mineral Lands;
6. National Parks and Plazas;
Adverse Claim Notice of Lis Pendens 7. Military or Naval Reservations
Notice to third persons that Literally means pending 8. Foreshore Lands
any transaction regarding suit. It operates as a notice 9. Reclaimed lands;
the disputed land is subject to the whole world that a 10. Submerged areas;
to the outcome of the particular real property is in 11. River banks;
dispute litigation. The inscription 12. Lakes, rivers, creeks and lagoons;
serves as a warning that 13. Reservations for public and semi-public purposes;
one who acquires interest 14. Protected areas;
over litigated property does 15. Resources within ancestral domains; and
so at his own risk, or that he 16. Others of similar character.
gambles on the result of the
litigation over the property.
Its purpose is to apprise Its purpose is to protect the
third persons that there is a rights of the party causing
controversy over the the registration of his lis
ownership of the land and pendens to advise third
to preserve and protect the persons who purchase or
right of the adverse contract on the subject
claimant during the property that they do so at
pendency of the their peril and subject to
controversy. the result of the pending
litigation.

Registration of Adverse Claim

By filing a sworn statement with the Register of Deeds of the
province where the property is located, setting forth the basis
of the claimed right together with other data pertinent
thereto. The duty of the register of deeds to record the same
on the title is ministerial.

Effect of the Registration of the Adverse Claim

It renders the adverse claim effective and any transaction
regarding the disputed land shall be subject to the outcome
of the dispute.

Lifespan of a Registered Adverse Claim

The adverse claim shall be effective for a period of 30 days
from the date of registration and it may be cancelled.

Notice of Lis Pendens negates good faith

One who deals with property subject of a notice of lis
pendens cannot invoke the right of a purchaser in good faith
– neither can he acquire better rights than those of his
predecessor in interests.

Evy Construction and Devt Corp. vs. Valiant Roll Forming Sales
Corp.

General Rule: The SC held that a levy on attachment, duly

registered, has preference over a prior unregistered sale and, even if
the prior unregistered sale is subsequently registered before the sale