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GENERAL PRINCIPLES § Exception to this Exception: Ex post facto law or impairment of

vested rights, impairment obligations in contracts, if it will violate our
Date of Effectivity of Laws constitution
• General Rule: 15 days after publication o Penal law is favorable to the accused
• Exception: Otherwise provided § Exception to this Exception: Habitual delinquent or a recidivist;
• Where Published: Official Gazette or Newspaper of General Circulation o Remedial or procedural in nature
• Qualification: “Immediately upon approval” o Curative in nature
o La Bugal-B’Laan Tribal Assoc. v Ramos: Effective immediately + publication o Interpretative laws
fulfilled o Creates new substantive rights
• General Rule: Publication must be complete § Requisite: It has not prejudiced another acquired right of the same
o Even Presidential Decrees or Executive Orders of the President (when there is origin
a valid delegation of legislative power) o Emergency laws
• IRRs if there is a valid delegation to administrative agencies must also be published o Tax Laws (Sometimes)
• Decisions of the Court
o Need not be published in a NGC, but is published in our SCRA Acts Contrary to Provisions of Mandatory/Prohibitory Laws
o Still needs to be published to inform the public of jurisprudence • General Rule: Void
• Exception: Law authorizes validity
Validity of Customs • Mandatory: Impose a duty
• General Rule: Valid o Contains “shall” or “must”
• Exception: Contrary to law, public order or policy o Example: Testator personally prepare and execute a will in a language know
to the testator
• Requisites to Establish a Custom:
o Plurality of acts • Prohibitory: Impose a duty to refrain from doing a particular act
o Repetitive acts o “Shall not” or “may not”
o Followed by a large number of people o Example: Joint Wills
o Not contrary to law
Waiver of Rights
Computation of Legal Periods • General Rule: Rights may be waived
• Year: 12 calendar months • Exception: Contrary to law, public order, public policy, morals or good customs, or
• Calendar Month: Month designated in the calendar prejudicial to a 3rd person
o Without regard to the number of days it may contain • Requisites of a Valid Waiver: [HEC-CN]
• Month: 30 days o Must actually have the right he renounces
o Exception: Refers to a specific calendar month o Must know of the existence of such right
• Day: 24 Hours o Must have the capacity to make the renunciation
o Renunciation must be made in a clear and unequivocal manner (Intent)
• Night: Sunset to sunrise
o Waiver is not contrary to law, public order, public policy, morals or good
• Note: As revised by the Administrative Code
customs, or prejudicial to a third person
• TLC: Why is this an important article? Your counting of your legal periods will be different
• Rights Subject to Waiver: What may be waived are rights and privileges of any
o Filing of pleadings etc
character, whether secured by contract, conferred by statute, or guaranteed by the
o Remember! Exclude the first, include the last
Constitution. Generally, the rights which are waived are those which refer to a person’s
patrimony (Patrimonial Rights)
Application of Laws
• Rights that Can’t be Waived: Human and Family Rights are not subject to waiver
• General Rule: Prospective
o Rights of others
• Exception: [EPR-CNET]
o Law expressly provides
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Repeal of Laws Damnum Absque Injuria
• Repealed only by subsequent ones • Exercise of a right + Exercised Validly or in good Faith + Damage is caused
• Manner of Repeal • Effect: Not a legal injury
o Express o No liability for damage
§ TLC: There is an repealing clause
o Implied: Provisions are incompatible with the previous law Acts Contrary to Law
§ Is not favored • Every person who, contrary to law, willfully or negligently causes damage to another,
shall indemnify the latter for the same
Repeal of Repealing Law o Note: May be done willfully or negligently
• Repealing Law Expressly Repeals + Is also repealed • Rationale of Provision: Overarching Remedy for acts not punishable
o General Rule: No revival for OG law • Requisites:
o Exception: Expressly provided o Act must be willful or negligent
• Repealing Law Impliedly Repeals + Is also repealed o It must be contrary to law
o General Rule: OG law revived o Damages must be suffered by the injured party
o Exception: Expressly provided • ETR: Art. 1170 = Culpa Contractual (performance of obligation); Art. 2176 = No Existing
Obligation + Not Contrary Existing Law; Art. 20 = No Existing Obligation + Contrary to
Abuse of Right (Art. 19) Existing law
• Every person must, in the exercise of his rights and in the performance of his duties, act
with justice, give everyone his due, and observe honesty and good faith Contrary to Morals, Good Customs or Public Policy (Art. 21)
• Requisites: • Any person who wilfully causes loss or injury to another in a manner that is contrary to
o Legal right or duty morals, good customs or public policy shall compensate the latter for the damage
o Exercised in bad faith • Requisites:
o For the sole intent of prejudicing or injuring another o Legal act
o Objective of act is illegitimate o Act is contrary to morals, good customs and public policy
o Done with intent to injure
Test of Abuse of Right
• No hard and fast rule Breach of Promise to Marry
o Depends on the circumstances of each case • General Rule: Mere breach of promise to marry is not an actionable wrong
• General Rule: The exercise of a right must be in accordance with the purpose for which • Exceptions
it was established o Wassmer v Velez: To formally set a wedding and go through all the above-
• Qualification: described preparation and publicity, only to walk out of it when the matrimony is
o Must not be excessive or unduly harsh about to be solemnized, is quite different
o No intention to injure another § This is palpably and unjustifiably contrary to good customs
o Baksh v CA: Seduction; Where a man's promise to marry is in fact the
Doctrine of volenti non fit injuria proximate cause of the acceptance of his love by a woman and his
• “To which a person assents is not esteemed in law as injury” refers to self-inflicted injury representation to fulfill that promise thereafter becomes the proximate cause of
or to the consent to injury – which precludes the recovery of damages by one who the giving of herself unto him in a sexual congress, proof that he had, in reality,
knowingly and voluntarily exposed himself to danger, even if he is not negligent in doing no intention of marrying her and that the promise was only a subtle scheme or
so deceptive device to entice or inveigle her to accept him and to obtain her
• Elsewhere, we explained that when “a right is exercised in a manner which does not consent to the sexual act, could justify the award of damages pursuant to
conform with the norms enshrined in Article 19 and results in damage to another, a legal Article 21 not because of such promise to marry but because of the fraud and
wrong is thereby committed for which the wrongdoer must be responsible.” deceit behind it and the willful injury to her honor and reputation. It is essential,
however, that such injury should have been committed in a manner contrary to
morals, good customs or public policy
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Elements of Malicious Prosecution - Delivery or payment was due to a interpretation of a doubtful or difficult
• The fact of the prosecution or that the prosecution did occur and that the defendant was simple mistake in law (not doubtful or interpretation of law)
himself the prosecutor or that he instigated its commencement difficult)
• That the action finally terminated with an acquittal
• That in bringing the action, the prosecutor acted without probable cause Thoughtless Extravagance
• That the prosecutor was actuated or impelled by legal malice, that is, by improper or • Expenses for pleasure or display
sinister motive • Court Option: Stop extravagant expenses
• Requisites:
Unjust Enrichment/Solutio Indebiti o Instance of government or private charitable institution
• Every person who through an act of performance by another, or any other means, o Period of acute public want or emergency
acquires or comes into possession of something at the expense of the latter without just
or legal ground, shall return the same to him Dereliction of Duty
• Requisites of Unjust Enrichment: • Who may File: Person who suffered material or moral loss
o Act of Performance or by any other legal means by a person • Qualification: Without prejudice to any disciplinary administrative action
o Acquires or comes into possession of something without just or legal ground • Requisites:
o Acquiring or possessing is to the expense of the performing party o Defendant is a public officer charged with a performance of a duty in favor of
the plaintiff
Action in Rem Reverso o He refused or neglected without just cause to perform the duty
• For the recovery of what has been paid or delivered without just cause or legal ground o Plaintiff sustained material or moral loss as a consequence of such non-
• Requisites: performance
o Defendant has been enriched o The amount of such damages, if material
o Plaintiff has suffered a loss
o Enrichment of the defendant is without just cause or legal ground Civil Liability Ex Delicto
o Plaintiff has no other action based on contract, quasi-contract, crime or quasi- • General Rule: Every person criminally liable is also civilly liable
delict • Exception: Accused not author of act
o No civil liability ex delicto
Solutio Indebiti • Qualification: Accused acquitted based on reasonable doubt—
• Imposes liability even without fault or negligence (Indemnity) o Not exempt from civil liability ex delicto
• Requisites: o Civil action for damages may be instituted
o Injurious act or event benefited the defendant § Quantum of Proof: Preponderance of evidence
o Delivery or payment by reason of mistake o Possible Court Action: Plaintiff to file a bond
§ Purpose of Bond: Answer for damages if complaint found to be
Action in Rem Reverso Solutio Indebiti malicious
- Plaintiff suffers a loss • Duty of Court: Declare that acquittal is based on reasonable doubt
- Defendant is enriched o Qualification: May be inferred from text of decision
- Enrichment of defendant is a case of unjust enrichment (Without legal or just cause)
- Plaintiff has right to recover and defendant has duty to return Civil Liability for Defamation, Fraud or Physical Injuries
- Duty to return is to prevent unjust enrichment • Punishable Acts:
- Plaintiff has no other action based on - Plaintiff has an action based on quasi- o Defamation
contract, quasi-contract, crime or contract o Fraud
quasi-delict - Source of obligation is quasi-contract o Physical injuries
- Source of obligation is law - Delivery or payment was made by § Note: Not the crime; with or without intent to kill or injure
- Delivery or payment is not necessary mistake (Of fact or application or • Effect: Independent and separate civil action
to be by mistake
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o Qualification: Even if no reservation is made by the injured party (law itself
makes the reservation)
• Quantum of Evidence: Preponderance of evidence
Liability of City or Municipal Police Force
• Punishable Act: Refuses or fails to render aid or protection
o To any person in danger to life or property
• Liability: Damages
o Qualification: City/Municipality subsidiarily responsible
• Civil action independent of any criminal proceeding
• Quantum of Evidence: Preponderance of evidence
Independent Civil Action; Requisites
• Complainant may bring a civil action for damages against the alleged offender
• Requisites:
o Person claims to be injured by a crime
o Charges another with the same
o No independent civil action is granted
o Justice finds no reasonable grounds to believe that a crime has been
committed or Prosecuting attorney refuses or fails to institute criminal
proceedings
• Effect of Filing of Criminal Case Pending Civil Action: Civil action suspended until
criminal case is terminated
Elements of a Pre-Judicial Question
• There is a civil action that is antecedent to the criminal cases
• The issues are the same, or are intimately related to each other so much so that we need
to resolve the civil case ahead of the criminal case
o Resolution of such issue determines whether or not the criminal action may
proceed
• The 2 cases are lodged between 2 different tribunals
CONFLICT OF LAW RULES
Latin Rules
• Lex Loci: Law of the place
• Lex Fori: Law of the court before which the case is pending
• Lex Loci Contracturs: Law of the place where contract was made/performed
• Lex Domicilii: Law of the place of the residence of a party
• Lex Loci Rei Sitae: Law of the place where the thing is located
• Lex Patriae or Lex Nationalli: Law of the country/national
• Lex Loci Voluntatis: Law of the place selected by the parties
• Lex Loci Intentionis: Law of the place intended by the parties
• Lex Situs: Law of the place where the property is located
• Loc Loci Solutionis: Law of the place of resolution/performance
• Lex Mercatoria: Merchant law, adopted used by all commercial nations
• Lex loci Delicti Commissi: Law of the place where the crime was committed
• Lex Loci Actus: Law of the place where the act was done
• Lex Non Scripta: Unwritten common law, particular customs/practices
Nationality Principle [NCC]
• General Rule: All laws relating to the following, are binding upon citizens of the
Philippines although living abroad— [FRD-SCL]
o Family rights and duties
o Status
o Condition
o Legal capacity of persons
• Exception: Par. 2, Art. 26, FC
Lex Rei Sitae/Situs [NCC]
• General Rule: Personal or real property is subject to the law of the country where it is
situated
o Includes: All rules governing the descent; alienation and transfer of immovable
property and the validity; effect and construction of wills and other
conveyances; legal capacity of the person making a deed relating to
immovable property
• Exceptions: Law of the Citizenship of the decedent
o Order of succession
o Amount of successional rights
o Intrinsic validity of testamentary provisions
o Capacity to succeed from the defendant
• The Doctrine Of Processual Presumption
o Foreign law must be proven under the rules on evidence
o Courts will not take judicial notice of them without alleging and proving foreign
law
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o Failure to prove will result in the presumption that foreign law is the same as
Philippine law
Principle of Sovereignty [NCC]
• What: Prohibitive laws concerning persons, their acts or property, and those which have
for their object public order, public policy and good customs
• ETR: We refer to this only when talking about Filipino Citizens
o General Rule: Court will use the applicable law following the Conflict of Laws
Rule
o Exceptions: Court may refuse to apply the applicable law when—
§ Result injustice to a citizen of the Philippines
§ Against well established public policy
• Rule: Not rendered ineffective by—
o Laws or judgments promulgated in a foreign country
o Determinations or conventions agreed upon in a foreign country
• Example: Foreign Divorce decrees
The Doctrine Of Processual Presumption
• Foreign law must be proven under the rules on evidence
• Courts will not take judicial notice of them without alleging and proving foreign law
• Failure to prove will result in the presumption that foreign law is the same as Philippine
law
Forms and Solemnities of Contracts, Wills and Public instruments [NCC]
• General Rule: Governed by the laws of the country in which they are executed
o Lex Loci Celebrationis
• Exception: Mandatory/Prohibitory laws which require a specific form (ETR)
• Qualification: Executed before the diplomatic/consular officials of the RP = Philippine
law
• Intrinsic Validity: Lex Contractus; Lex Voluntatis
Principle Generality of Philippine Penal Laws (Territoriality Principle) [NCC]
• General Rule: Obligatory on all those who are within Philippine territory
• Exceptions:
o Treaty stipulations
o Principles of Public International Law
o Laws of Preferential Application
o Offense committed by a foreign sovereign while in Philippine territory
o Offense is committed by diplomatic representatives
o Offense is committed in a public or armed vessel of a foreign country
Chocie Of Law In Family Relations
Marriage
• National law governs questions of family rights and duties, status, conditions and
capacity
• Extrinsic Validity (Formalities)
o Lex loci celebrationis
o General Rule: If valid in the country of celerbraiton, the marriage is also valid
in the Philppines
o All states recognize as valid marriages celebrated in foreign countries provided
they comply with the legal formalities prescribed therein
o Note: Present and Prove foreign law
o Celebration by proxy is a matter of form
• Intrinsic Validity
o Lex Domicili or lex nationali
o General ability of a person to marry, for instances defined by requirements of
age and parental consent, but does not refer clearly to an individual’s being
permitted to marry a specific person or person of a determinate class
o Art. 2, FC: At least 18 years old, Consent freely given in the presence of the
Solemnizing Officer (Essential Requisites Validity)
o Art. 3, FC: Authority of SO, Valid marriage license, marriage ceremony with the
appearance of the parties before the SO and their personal declaration to take
each other hass H and W in the presence of not less than 2 witnesses of legal
age (Formal Requisites)
o Exceptions that Relate to Capacity of Parties to Enter:
§ Either or both parties are below 18 years of age;
§ It is bigamous or polygamous;
§ A subsequent marriage is performed without recording in the
§ Civil Registry and Registry of Properties the judgment of annulment
or declaration of nullity of the first marriage, the partition and
distribution of the properties of the spouses and the delivery of the
children’s presumptive legitimes;
§ Mistake as to the identity of the contracting party;
§ One of the parties was psychologically incapacitated to comply with
the essential marital obligations;
§ Marriage is incestuous;
§ Marriage is void by reason of public policy
§ Note: These only apply to Filipinos who marry abroad
• Court may withhold recognition of foreign marriage by invoking public policy
• Valid under law of one spouse but void under law of the other—
o Uphold validity
o Unless universally incestuous or highly immoral
Effects of Marriage
• Personal Relations Between the Spouses
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o Mutual fidelity, respect, support, cohabitation, right to use husband’s surname
o Governed by the National law of the parties
o If the state follows domiciliary theory—apply the law governs their domicile
o If of different nationalities—
§ General Rule: Husband’s national law
• Woman usually loses her nationality and instead follows
that of the husbands
• Qualification: Not contrary to law, morals, good customs
of the forum
§ At Present: National law of the wife governs the personal relations of
a Filipino Wife who retains her Philippine citizenship
• Property Relations
o General Rule: Stipulation in marriage settlement
o Default Rule: Philippine law
§ Regardless of the place of celebration and residence
§ Even if of different nationalities
o Exceptions:
§ Agreed upon in the marriage settlement
§ Both spouses are aliens
§ Extrinsic validity of contracts affecting property outside the
Philippines and contract executed in that country (Lex situs)
§ Extrinsic validity of contracts entered into in the Philippines but
affecting property situated in a foreign country
• Whose laws require different formalities
o Doctrine of Immutability of Matrimonial Regime: regardless of the change
of nationality by the H or the W or both, the original property regime that
prevailed at the start of their marriage prevails
Divorce and Separation
• Based on defects/grounds arise after the marriage
• Absolute Divorce: Termination of the legal relationship between the spouses by an act
of law
• Relative Divorce/Legal Separation: Separation from bed and board which does not
affect the dissolution of the marital ties
o If same nationality—Use personal law
o If different nationality—Use personal law of the husband and law of the wife
• Divorce is a matter of concern of the state, and should be governed by the law of the
place where the person is most intimately concerned, the place where he dwelleth and
hath his home
• Grounds dictated by lex fori
• Divorce Decrees Obtained by Filipinos
o Of no validity and are not recognized here
o Reckoning point of citizenship is at the time the divorce was obtained and not
the time of celebration of the marriage
• Divorce between Foreigners
o Should be recognized under the principle of comity
o Provided it does not violate a strongly held policy of the Philippines
Annulment and Declaration of Nullity
• Annulment: Remedy if the marriage is voidable or annullable
• Declaration of Nullity: Remedy if the marriage is void ab initio
• Based on defects existing at the time of celebration of marriage
• If state follows traditional approach—
o Grounds of lex loci celebrationis
• If state follows policy centered approach—
o Grounds follow the law of the state of marital domicile
• Modern Approach: Law of the Marital Domicile
o Considered to have the most significant interest in the status of the spouses
• Lex fori does not come into play since the action turns on the validity of the marriage
• Example: Filipinos get married abroad—lex loci celebrationis for grounds of annulment
• Jurisdiction: `Lex loci celebrationis or Law of marital domicile
Parental Relations
• Legitimacy
o If parents of same nationality— Personal law of both
§ Personal law of the parents (Father)
o If parents of different nationalities— National law of the father
o Note: Above rules are what we follow here
o If illegitimate child— Personal law of the mother
• Paternity: Civil status of the father/mother with respect to the child begotten by him/her
• Filiation: Status of the child in relation to his parents
• Legitimation creates a permanent status of the child—immutable
• The rights and duties of parents may be modified by a change of the personal law of the
parents or of the father
Parental Authority Over the Child
• Personal law of the father controls the rights and duties of parents and children
• Joint exercise of parental authority mandated by Art. 211, FC
• If illegitimate— Personal law of the mother
• Doctrine of Immutability of Status:
o Status of a child is not affected by a subsequent change of nationality of the
parents; but the rights and duties of apparent and child, or child and parent,
would, after the parents’ change of nationality be governed by the new national
law of the parents
Adoption
• Adoption: Act by which relations of paternity and affiliation are recognized as legally
existing between persons not so related by nature
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• Law that Determines whether Relationship of Adoption has been created Capacity to Transfer/Acquire
o Child’s personal law • Law of the place where property is located
o If child does not reside in the country of his citizenship—
§ Personal law of the adopted will govern Extrinsic and Intrinsic Validity of Conveyances
§ Or persona law of the adopted and that of the child will be applied • Formalities—Lex situs
concurrently o Validity and effect of conveyance of property – question of property, rather than
• Process of adoption affects the status of the parties contract
o Lex domicile (of the adopted) • Essential validity of transfer—Lex situs
• If adopted and adopter are domiciled in different states— o Unless lex intentionis is clearly established
o Personal law of the adopted (child) shall apply • Effects of the conveyance of the properties—lex situs
• Effects of Adoption Exceptions to Lex Situs Rule
o Body of rights and other legal effects may be governed by two laws depending • Transaction does not affect transfer of title to or ownership of the land
on which law governed the creation of the adoption. o Governed by lex intentionis or lex voluntatis (Proper law of the contract)
§ If adopter’s personal law applied, same law governs effects. • Real property is offered by way of security (Mortgage) for the performance of an
§ If child’s personal law applied, such law will cease to regulate parent- obligation (mutuum)
child relations and will yield to the personal law of the parents o Loan—proper law of the contract
o Adoption relates to a civil right and does not effect changes in the political o Mortage- lex situs (merely an accessory contract)
rights of the adopter • Testate or intestate succession and capacity to succeed are governed by the national law
§ Citizenship of adopter not automatically given to adopted child of the decedent
• Issue involves considerations other than the validity and effect of the transfer itself
Choice Of Law In Property o Law of the state which has a real interest in applying its law governs
General Rule: Situs of Certain Properties
• Immovable: Lex Situs • Chose in Possession (Tangible)
o Extrinsic and intrinsic validity of transactions o If fixed situs—lex situs
o Transfer of property, alienations, mortgages, capacity of contracting parties, o If without fixed situs— no material existence, or material or tangible situs
interpretation, effects of ownership, accession, usufruct, lease, easement, § Given artificial or constructive situs
quieting of tile, police power, eminent domain, taxation • Those usually in motion—
• Movable: Lex domicile, lex situs, lex loci actus or the property law of transfer o Vessels—law of the flag (public); law of the country of registry
o Old Rule—Mobilia Sequuntur personam (private/commercial); if docked at foreign port (port = temporary situs)
§ Personal properties were understood to mean the personal effects or o Goods in transit
belongings of the owner which he carried with him wherever he went § LDD - law of destination
o Art. 15, NCC: Real/Personal subject to the law of the country where it is § Seizure of goods— law of the place where the goods were seized
situated § Disposition or alienation— proper law of the contract (lex loci
o Personal Property may be separated from its owner, who may be taxed on its voluntatis or lex loci intentionis)
account at the place where the property is located although he is not a • Choses in Action (Intangible)
domiciliary, citizen or resident of the state which imposed the tax o Credits, debts, negotiable instruments, shares of stock in corporations,
o Lex Situs: State where property is located has the sole power to decide the franchises, goodwill of a business, or intellectual properties (patents,
validity and effects of the transfer of properties trademarks etc.)
o Lex Loci Actus: Law of the place where the transaction was located (contracts, • Personal Property for Tax Purposes
sale or assignments) o Mobilia sequuntur personam
o Proper law of the forum: Law of the state which has the most real connection o Domicile of the credtiro, where the collectible credit may be taxeds
with the transfer • Situs of Money
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o Where such funds are located physically or where the institution holding such
funds is located
• Situs of Debts
o Choses in possession
o Choses in action: located where the debtor is located; it is where he can be
sued and the debt collected (Garnishment)
o Involuntary Transfer/Assignment— Where debtor may be served with
summons
o Voluntary Transfer/Assignment— Proper law of the contract
o For administering debts—
§ Where the assets of the debtor are usually situated
• Negotiable Instruments
o Whether Negotiable or not— Law governing the rights embodied in the
instruments
o Validity of transfer, deliver or negotiation— Law of the situs of the instrument at
the time of transfer, delivery or negotiation
• Corporate Shares of Stock
o Law of the place of incorporation
§ Situs of the shares themselves
§ It is there that the transfer is recorded in the books of the corporation
o Situs of the income derived from the sale of such shares
§ Proper law of the contract (lex loci voluntatis or lex loci intentionis)
o Taxation on dividends
§ Governed by the law of the place of incorporation
• Patents, Trademarks, Tradename and Copyright
o Use of a company’s corporate and trade name is a property right which may be
asserted against the whole world
o Trademark acknowledges no boundaries but extends to every market where
the trader’s goods have become known and identified by the use of the mark
Choice Of Law In Contracts
Extrinsic Validity
• General Rule: Lex loci celebrationis/Lex lcoi contractus
• If done by telefax, telegram, etc— Place where the offer was made
• If place of execution was accidental or casual— Law of the place with the most significant
relationships
o Law of the place which the parties must have assumed would be applied to
give effect to their transactions
• Exception: When lex loci contractus contravenes an established and important policy of
the forum; or when to apply it would work gross injustice; or transaction is conta bonus
mores
Intrinsic Validity
• Nature, content and effects of the agreement
• General Rule: Proper law of the contract
o Note: Policy of Philippine law is to give effect to the intention of the parties
• Perfection: Lex loci contractus (where contract is made)
o Law of the place where the last act is done which makes the agreement
binding
• Perofrmance: Lex loci solutionis (place of performance)
o All matters relating to the time, place and manner of performance, sufficiency of
performance and valid excuses for non-performance
• Lex loci intentionis (intention of the parties)
o Law intended by the parties
o Choice-of-law provision in the contract
Capacity to Contract
• General Rule: Personal law of the parties
o If Country follows domiciliary theory— Law of his Domicile
o If Country follows Nationality theory— National Law
§ Note: What we follow
• Exception: Alienation of Real and Personal properties; lex situs
Choice of Forum Clause
• General Rule: Parties are free to select the law to govern the contract
o Several laws may be selected; each governing different elements of the
transaction
o Can’t stipulate on the jurisdiction of courts or to oust Philippine courts of their
jurisdiction
§ Stipulations do not oust courts of jurisdiction
• If choice changes— New law should be applied
o Exception: Change is so revolutionary that it could never have been
contemplated by the parties
• Exception:
o Can’t select a law that has no connection at all with the transaction
o Contravenes a strong public policy of the forum in which the suit is brought,
whether declared by statute or judicial decision
• If under selected law contract is legal + illegal in place of performance—
o Selected law shall prevail
Arbitration Clause
• Absent averment and proof that compliance with the arbitration clause is a condition
precedent, will not rid the courts of jurisdictions
Cognovit Clause (Confession-of-Judgment Clause)
• Debtor may agree to be subject to the jurisdiction of a specific court/s in case he
breaches the contract or defaults in payment
• Waives debtor’s right to receive notice, authorizes entry of judgment against him
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Special Kinds of Contracts
• Sales: Lex situs
• Lease of Property:
o Creating real rights—lex situs
o Does not create real rights— General Rules Of Law On Contracts
§ Extrinsic—lex loci celebrationies
§ Capacity—personal law
§ Intrinsic—lex loci voluntatis or lex loci intentionis
• Simple Loan: General rules of law on contracts
• Loan by Private Individual: Where the loan was obtained
• Pledge/Mortgage/Antichresis: Lex Situs
• Lease of Service Agency, Guaranty/Suretyship: general rules of law on contracts
• Transpiration and Carriage
o Loss, destruction or deterioration of goods in transit—law of destination
o COGSA— limitation of liability applies,
§ Unless shipper declares the goods and inserts such declaration in
the bill of lading
o If air transport—Warsaw Convention
o If with malice, gross negligence, bad faith or improper discrimination
§ Carrier liable for damages beyond those limited by the Warsaw
convention
Absence of Effective Choice
• Consideration will be given to the following factors— Place of contracting, of negotiation,
of performance, situs of the subject matter, domicile, residence, nationality, place of
incorporation and place of business of the parties, place under whose local law the
contract will be most effective
• Forum court shall single out the state of the most significant relationship with the contract
Probate of Wills
• Probate: Process of proving before a competent court the due execution of a will, that
the testator was possessed of testamentary capcity and the approval by said court of the
will
• Law of the forum
o Procedural in character; generally does not pass upon the intrinsic validity of
the will
• Wills proved outside Philippines may be allowed here
o Not re-probation but now enforcement of a will already probated
• Wills executed in a foreign country may be probated in the PH
o Must show due execution in accordance with lex loci celebrationis
o Testamentary capacity at the time of execution of the will
• Will made in the Philippines by an alien which might be proved and allowed in his own
country shall have the same effect as if executing according to the laws of the Philippines
Joint Wills
• Invalid for Filipinos even if done abroad
• Made by aliens abroad—valid as long as executed according to their lex nationali or lex
domicile or lex loci celebrationis
• Made by an alien + Filipino abroad— valid as to the alien, void as to the Filipino
Administration of Estates
• Administration: Process of determining and realizing the assets of a decedent, payment
of debts of the estate and the actual distribution of the residue to the heirss
• Procedural in nature—lex fori
• Probate court has the duty, upon allowance, of the will, to issue letters testamentary to
the person named in the will upon the latter’s application
• Ancillary Administrator: Appointed by the court of the foreign country where the assets
or property are located
o Rights an duties of the executor/administrator are coextensive with the
territorial jurisdiction of the court that qualified/appointed him
Trusts
• Choice-of-law clause
• If no Choice-of-law clause— law that will sustain validity of the trust
o Law of the state where the trust is being administered
o Law of the state where the trustor was domiciled
Choice Of Law In Torts And Crimes
General Rule—Torts
• Traditional View: Lex loci Commissi/Locus Delicti (Law of the place where the tort was
committed)
o Common Law: Where the last event necessary to make an actor liable for an
alleged tort occurs
§ Adheres to the vested rights theory
§ Where the wrongful act became effective
o Civil Law: Where the tortious conduct was committed
§ Where the act began
• Modern View:
o Most Significant Relation
§ Evaluate the relevance of the contacts to the issue in question
• Strength, not in numbers
§ Assesses the event or transaction in light of the relevant policy
considerations of the interested states and their underlying policies
§ Local law of the state which, with respect to the particular issue, has
the most significant relationship to the occurrence and the parties
o Interest Analysis
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§ Relevant concerns that the state may have in the case and its
interest in having its law applied on that issue
§ Determination of whether there is a “False Conflict or not”
§ Note: False Conflict—if only one state has an interest in having its
law applied and failure to apply the other state’s law would not impair
the policy reflected in that law
o Caver’s Principle of Preference:
§ A higher standard of conduct and financial protection given to the
injured party by one State is applied by the State where the injury
happened, if the latter State adopts a lower standard of conduct and
financial protection to the injured
• Tag Jurisdiction: Used to justify the exercise of personal jurisdiction over a defendant
present in the territory, however short
Foreign Tort Claims
• Tortious liability is transitory—deemed personal to the tortfeasor and follows him
wherever he goes
• Note: All procedural matters are governed by the lex fori, but all substantive matters are
governed by lex loci commissi (Prescriptive Period to file an action is a substantive rule)
• Requisites:
o Foreign tort is based on a civil action ad not on a crime
o Foreign tort is not contrary to the public policy of the form
o Judicial machinery of the forum is adequate to satisfy the claim
• Product Liability of a Foreign Manufacturer
o Forum courts have real interest in applying its own law in order to allow its
injured domiciliary to recover damages
o Exercise of personal jurisdiction over a non-resident may be justified only if
there exist minimum contacts between the defendant and the forum state
The Alien Tort Act
• Grants US District Courts original jurisdiction over any civil action filed by an alien for a
tort committed in violation of the law of nations or a treaty of the United States
• Violation of human rights is a universal evil which warrants the exercise of jurisdiction
over completely foreign tort cases under the Alien Tort Act
o Even if there are no significant contacts between the forum, the parties and the
events
• Example: Cases filed in the US by Filipinos, for human rights violations, against the
Marcoses
Tort Crime
- Transitory and personal - Local; perpetrator can be sued only in the state where
- Injury to an individual the crime was committed
who may be situated in
any place
- Purpose is to indemnify - Injurty to the state; an affront against the sovereignty
the victim for injuries and good order of the state within whose jurisdiction it
occurs
- Purpose is to punish and reform perpetrators and to
deter them from violating the law
General Rule—Crimes
• Nullum crimen sine lege
• Lex loci delicti (Law of the place where the crime is committed)
• Territoriality Rule
o French Rule: The state whose flag is flown by the vessel has jurisdiction,
except if the crime affects the peace, order, security and safety of the territory
o English Rule: The territory where the crime was committed will have
jurisdiction
§ Exceptions:
• Matters relating to the internal order and discipline of the
vessel
• Those which affect solely the ship and its occupants such
as minor or petty criminal offenses committed by members
of the crew
§ Note: What we follow
Exceptions to Territoriality Rule
• Crimes committed by state officials, diplomatic representatives and officials of
recognized international organizations
o Only acts jus imperii (performed in sovereign capacity/duty) and not acts jure
gestionies (private, commercial or proprietary acts)
• Crimes committed on board a foreign vessel, even if it is within the territorial
waters of the coastal state
o Philippine laws can’t apply unless the crime disturbs our peace and order
• Article 2, Revised Penal Code
o Should commit an offense while on a Philippine ship or airship
o Should forge or counterfeit any coin or currency note of the Philippine Islands or
obligations and securities issued by the Government of the Philippine Islands
o Should be liable for acts connected with the introduction into these islands of the
obligations and securities mentioned in the presiding number
o While being public officers or employees, should commit an offense in the
exercise of their functions; or
o Should commit any of the crimes against national security and the law of nations,
defined in Title One of Book Two of this Code
[UNTS]
PERSONS AND FAMILY RELATIONS When Considered Born
• General Rule: Alive at time it is completely delivered from mother’s womb
Juridical Capacity Capacity to Act • Qualification: Fetus with intra-uterine life of less than 7 months
- Fitness to be subject of legal relations - Power to do acts with legal effects o Must be alive for at least 24 hours after complete delivery
- Inherent in every natural person - Not inherent, but is acquired o Effect of Death Within 24 Hours: Not considered born
- Lost only through death - May be lost through other means or • TLC: You have to check the intrauterine life. If less than 7 months there is the additional
- Can’t be limited or restricted circumstances requirement that it must be alive when completely separated and must also survive for at
- Can exist even without capacity to act - Can be limited or restricted by certain least 24 hrs
- Aptitude for holding and enjoyment of circumstances o Failure to survive for at least 24 hours will incapacitate him to be a donee
rights - Must exist with juridical capacity
- Aptitude to exercise rights Extinguishment of Civil Personality
Note: Full Civil Capacity = Juridical • Death
Capacity + Capacity to Act • Note: Natural or physical death
o Law does not recognize civil death
Presumption Of Capacity • Effect of Death on Rights and Obligations: Determined by law, contract and will
• Capacity to act must be supposed to attach to a person who has not previously been • People v Tirol: Criminal liability ends with death but civil liability may be charged against
declared incapable, and such capacity is presumed to continue for so long as the the estate
contrary is not proved
Doubt in Succession
Types of Personalities • General Rule: Whoever alleges death of one prior to the other shall prove
• Provisional Personality • Effect of Absence of Proof: Presumed that they died at the same time
o All purposes favorable to the conceived child o No transmission of rights from one to the other
• Actual Personality • Requisites for Application of Provision:
o After becoming a person o Question is on successional rights
• Artificial Personality o Persons who died are entitled to inherit from one another
o Estate
2 Persons Perish In The Same Calamity (Rules of Court)
Restrictions on Capacity to Act • Requisites:
• Minority o Deaths occurred in a calamity
• Insanity or imbecility o No particular circumstances form which it can be inferred that one died ahead of
• Deaf-mutism the other
• Civil Interdiction (Penalty) • Example: Insurance Contracts— Who is entitled to proceeds
• Prodigality • Survivorship is determined from the probabilities resulting from the strength and the age of
• Family relations the sexes, according to the following rules:
• Alienage o If both < 15 years old = Older survived
• Absence o If both > 60 years old = Younger survived
• Insolvency and trusteeship o If Person A is < 15 years old + Person B > 60 years old = Person A survived
o If both 15 < age < 60 + Different sex = Male survived
Acquisition of Personality o If both 15 < age < 60 + Same sex = Older survived
o If Person A < 15 or > 60 + Person B 15 < age < 60 = Person B survived
• General Rule: Birth determines personality
• Qualification: Conceived child considered born for all purposes favorable to it
o Requisite: Compliance with Art. 41
o Examples: Right to Legal Support; Can be a recipient of a simple or pure
donation
[UNTS]
Art. 43 Sec. 3(jj), Rule 131 Marriage Contract Ordinary Contract
- Used only for succession - May be used for non-succession purposes - Only 2 persons - May be entered into by any number of
purposes Only during death in calamities, wreck, - Between a man and woman only persons
- In any circumstance battle or conflagration - Nature, consequences and incidents of - May be of any sex
marriage are governed by law and not - Parties are free to stipulate clauses,
Juridical persons subject to an agreement terms and conditions as they may
• An abstract being, formed for the realization of collective purposes, to which the law has o Exception: Property deem convenient
granted capacity for rights and obligations Relations - Parties may terminate an ordinary
• Must be recognized as having its own rights and obligations which are not that of its - Can’t be revoked, dissolved, or contact by mutual agreement
component members otherwise terminated by the parties (Rescission by stipulation (extra-
• Its personality is manifested only in the realm of patrimonial relations—it has no family - TLC: Genera rule it is terminated only judicial rescission) or when there is a
and personal rights by the death of one of the spouses; but breach (judicial rescission))
it may be terminated judicially
Rights of Juridical Persons (declaration of nullity or annulment)
• Acquire and possess property of all kinds
• Incur obligations Essential Requisites of Marriage
• Bring civil or criminal actions • Legal Capacity (Age)
o Male and female
Domicile o At least 18 years old
• Natural Persons: Place of habitual residence § Note: Determined at date of marriage
• Juridical Persons: Place where their legal representation is established, or where they o No legal impediment
o Not under Art. 37 and 38
exercise their primary functions
o If Foreigner— Certificate of Legal Capacity by Consular Office
o Exception: There is a law or other provision that fixes the domicile
• Requisites of Domicile • Consent freely and voluntarily given
o Residence or bodily presence in a new locality o Qualification: If 18-21— Parental Consent
o Intention to permanently remain there( animus manendi)
o Intention to abandon the old domicile (animus no revertendi) Formal Requisites of Marriage
• Authority of the Solemnizing Officer
Kinds of Domicile • Valid Marriage License
• Domicile of Origin: Domicile of parents of a person at the time he was born o Exceptions:
• Domicile of Choice: Domicile chosen by a person, changing his domicile of origin § Affidavit of Exclusive Cohabitation
§ Articulo Mortis
o Domicile where he intends to remain (animus revertendi)
• Domicile by Operation of Law (i.e. Art. 69, domicile of minor) • Marriage Ceremony

PERSONS AND FAMILY RELATIONS Essentials of a Marriage Ceremony

Marriage
• Special contract of permanent union between a man and a woman
• For the establishment of conjugal and family life
• Foundation of the family and an inviolable social institution
o Whose nature, consequences, and incidents are governed by law and not
subject to stipulation
o Except that marriage settlements may fix the property relations during marriage
within the limits provided by law
• Personal appearance of the parties before a solemnizing officer
• Personal declaration that they take each other as husband and wife in front of at least 2
witnesses of legal age
Absence/Defect/Irregularity of Requisites
• Absence of an Essential Requisite = Void ab initio
o Marriage license expired on date of marriage
o Falsity of affidavit of cohabitation
• Defect in any of the essential Requisite = Voidable
[UNTS]
• Irregularity in Formal Requisite = Does not affect validity of marriage Mayor, Vice-Mayor or Sanggunian Within LGU
o Liability of Responsible Party: Civil + Criminal + Administrative Member (Temporary or Permanent
• Qualifications: The following are considered irregularities— Vacancy)
o Issuance before completion of publication of application for issuance of
marriage license Additional Duty of Solemnizing Officer
o Issuance of marriage license elsewhere • When Applicable: Articulo Mortis or Remote Location
o Absence of certificate of legal capacity to marry (Aliens) • Affidavit stating fact of—
o Absence of certificate of compliance with Family Planning o No means of transport/articulo mortis
o Judge/Mayor solemnized outside of his territorial jurisdiction o Took steps to ascertain the age, relationship and lack of legal impediment
o No 2 valid witnesses to the marriage ceremony
o Parties do not belong to the same religion/church (TLC) Marriages Exempt from Marriage License
• Note: The following are considered to not have any marriage at all— • Articulo Mortis
o No marriage ceremony (i.e, simple singing of document) o In General
o No consent o Stopovers and Port of Calls
o Within the Zone of Military Operation
Void Marriages No Marriage at All • Remote Areas
- Remedy: Petition for Declaration of - Remedy: Petition Correction of Entries • Among Muslims or other members of Ethnic Cultural Communities
Nullity (Rule 108) • 5 year Exclusive Capacitated Cohabitation
- Art. 40 applicable - Art. 40 inapplicable
5-Year Exclusive Capacitated Cohabitation
Solemnizing Officer Requisites • Requisites: Execute affidavit containing the following—
Incumbent Member of the Judiciary Within court’s jurisdiction o Lived as exclusively as husband and wife
o For at least 5 years
Note: Members of the CA and SC have o Without legal impediment to marry each other
jurisdiction over the whole of the Philippines • Additional Requisite: Solemnizing Officer shall state under oath that—
Priest, Rabbi, Imam or minister of 1. Written authority by his church o He ascertained the qualifications of the contracting parties + found no legal
any church or religious sect 2. Registered with the Civil Registry General impediment to the marriage
3. Acting within the limits of the written
authority granted him Where Marriage Ceremony Takes Place
4. At least one of the contracting parties • General Rule: Only in—
belong to the same church o Chambers of the judge or in open court
Ship Captain or Airplane Chief 1. Between passengers or crew members o Church, Chapel or Temple
2. While at sea or in flight, during stopovers o Office of the consul-general, consul or vice-consul
and ports of call • Exception:
3. Articulo Mortis o Marriages in articulo mortis
Military Commander of a Unit 1. Chaplain is assigned o Remote places
2. Chaplain is absent o Place designated by both parties
3. Officer a Commissioned Officer § Requisite: Written request of both parties to Solemnizing Officer
4. Between armed personnel or civilians
5. Within zone of military operation Issuance of Marriage License
6. Articulo Mortis • General Rule: Issued by the Local Civil Registrar of the City/Municipality where either
Consul-General, Consul or Vice- Qualification: Shall also serve as issuer of contracting party habitually resides
Consul marriage license and civil registrar • Exceptions:
o Marriages in Articulo Mortis
[UNTS]
o Contracting parties reside in a remote place and there is no means of o Mistake in identity Minority (Art. 35(5))
transportation to bring them to the Office of the Civil Registry § How does this happen?
o Marriages void for Non-Registration (Failure to comply with Art. 52) (Art. 35(6))
When Presentation of Birth Certificates Not Required o Psychological Incapacity (Art. 36)
• Parents of contracting parties appear personally before local civil registrar + swear to o Incestuous marriages (Art. 37)
correctness of lawful age of parties o Marriages against public policy (Art. 38)
• Local civil registrar is convinced that either or both of them have the required age
o By merely looking at them Requisites to Apply 2nd par., Art. 26
• Mixed marriage
Additional Requirements • Divorce is obtained by the alien or Filipino spouse
• 18-21 Years Old: Parental Consent (Alternatives) o Point of reckoning in determine nationality is at the time the divorce is obtained
o In writing + parents appear personally (to determine if mixed marriage)
o Affidavit + made in presence of 2 witnesses + attested to o Filipino who has become a foreign citizen + applies for divorce is considered a
• 21-25 Years Old: Parental Advice foreigner
• 18-25 Years Old: Marriage Counselling • Alien spouse must have obtained an Absolute Divorce
o Issued by Priest, Imam, Rabbi authorized to solemnizing, or accredited o Capacitates him to remarry
marriage counsellor
• Certificate of Legal Capacity to Contract Marriage Void Marriages
o Who: Either or both spouses an alien
o Issued by their diplomatic/consular officials Void Marriages
• Affidavit of Capacity to Contract Marriage • Article 35
o Who: Stateless persons or Refugees o Minority
o State circumstances showing capacity to contract marriage o No Authority of the Solemnizing Officer
§ Exception: Good faith belief of either or both parties
Publication of Notice o Solemnized without a License
• Full names + residence of the applicants + other data in application § Exceptions: Marriages in articulo mortis, remote areas, 5 year
• Period: 10 consecutive days exclusive cohabitation
• Place: Bulletin board outside office of the registrar o Bigamous or Polygamous Marriages
o Conspicuous place within the building + accessible to general public § Exception: Art. 41 Marriage
• Required Notice: Request all persons having knowledge of any impediment to advice o Mistake in Identity
registrar o Void Under Art. 53
• Date of Issuance of Marriage License: After completion of publication period • Psychological Incapacity (Art. 36)
o Qualification: Despite knowledge of impediment • Incestuous Marriages (Art. 37)
o Exception: Ordered by a competent court o Ascendants and descendants
§ Instance of any interested party or the registrar § Qualification: Any degree
§ TLC: Direct line
Marriages Solemnized Outside the Philippines o Brothers and sisters
• General Rule: Valid in foreign country of solemnization = Valid here § Qualification: Half or full blood
o Requisite: Celebrated in accordance with the laws in force in the country • Against Public Policy (Art. 38)
where they were solemnized o Collateral Blood Relatives
• Exceptions: § Within 4th civil degree
o Minority (Art. 35(1)) § Legitimate or illegitimate
o Bigamous and Polygamous marriage Minority (Art. 35(4)) § TLC: 2nd cousin pwede na
§ Unless Muslim o Step-parents and step-children
§ Applies even after termination of the marriage
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§ Note: Step-siblings may marry
o Parents-in-law and children-in-law
§ Applies even after termination of the marriage
o Adopting parent and adopted child
o Surviving spouse of adopter and adopted child
o Adopter and surviving spouse of adopted child
o Adopted child and legitimate child of the same adopter
o Adopted children of the adopter
o One kills the spouse of another to marry the latter
§ Qualification: Motive must be proven, but no need for conviction
Psychological Incapacity
• Psychologically incapacitated to comply with the essential marital obligations of marriage
o TLC: Not only insensitivity to marital obligations but also parental obligations
(Kalaw v Fernandez)
• Qualification: Even if ground manifests only after manifestation
Characteristics of Psychological Incapacity
• Gravity: Grave or serious enough to bring about the disability of the party to assume
essential obligations of marriage
o Downright incapacity or inability, not a refusal, neglect or difficulty, much less ill
will
• Juridical Antecedence: Rooted in the history of the party and must be proven to be
existing at the time of marriage
o Qualification: Overt manifestations may emerge only after the marriage
• Incurability: Medically or clinically permanent or incurable
o May be absolute or relative only in regards to the other spouse
Prescription of Action for Absolute Nullity
• General Rule: Does not prescribe
• Qualification: Art. 36 (10 years after marriage)
• Celebrated during NCC and those Before AM NO. 02-11-10-SC
o May be filed by any interested party
o Even beyond lifetime of the parties to the marriage
• After AM No 02-11-10-SC
o Petition for Declaration of Absolute Nullity
§ Only by husband and wife
o Collaterally in Estate Proceedings
§ Compulsory or Intestate Heirs
Judicial Decree of Nullity for Purposes of Remarriage
• General Rule: Must acquire judicial decree before a person can remarry
• Requisites for Application of Provision:
o Prior marriage ostensibly valid
§ Example: No marriage ceremony at all performed
§ Effect: No need to comply
o Subsequent marriage must have all essential requisites for validity except for
the existence of the prior marriage
Judicial Decree of Presumptive Death; Requisites of a Valid Subsequent Marriage (Art.
41)
• Prior spouse (absentee) has been absent for—
o 4 consecutive years
o 2 years if in danger of death
• Present spouse wishes to remarry
o If your reason in going to court is not to marry, you don’t need to file an action
o You only file if your purpose is to remarry
• Well-founded belief that absent spouse is already dead
o Earnest, genuine and active efforts on the part of the present spouse to look for
the absent spouse; look for the spouse himself and seek assistance of the
government
• Spouse present has obtained a judicial declaration of presumptive death
Effect of JDPD
• The first marriage will be dissolved as well as the property regime
• Children born/conceived during will be considered legitimate
• Surviving spouse may remarry
Termination of Subsequent Marriage
• Recording of the affidavit of reappearance
• Contents: Facts and circumstances of reappearance
• Requisites:
o Due notice to the spouse of the subsequent marriage
o Who Files: Any interested person
o Where Filed: Civil registry of the residence of the parties (subsequent
marriage)
• General Rule: Automatic termination upon filing of affidavit of reappearance
o Exceptions:
§ Judgement annulling or declaring void ab initio the previous marriage
§ Judicial declaration of dissolution or termination of the subsequent
marriage
3 Possible Remedies when Present Spouse in Bad Faith
• Annulment of judgment declaring presumptive death, based on extrinsic fraud
• Filing of affidavit of reappearance
• Petition to declare 2nd marriage an absolute nullity
o AM NO. 02-11-10-SC does not apply as parties are guilty of bigamy
[UNTS]
Effects of Termination of Subsequent Marriage (Applies to Voidable Marraiges As Well)
• Children conceived prior to termination are legitimate
o Custody + Support decided by the court in a proper proceeding
• ACP/CPG dissolved and liquidated
o Share of Guilty spouse is forfeited in favor of—
§ Common children
§ Children of guilty spouse by a former marriage
§ Innocent spouse
• Donations proper nuptias
o General Rule: Remain valid
o Exception: Donee or both spouses in bad faith
§ Revoked by operation of law
• Insurance Designation
o General Rule: Innocent spouse may revoked
o Qualification: Even if stipulated as irrevocable
• Spouse in bad faith disqualified to inherit from innocent via estate or intestate
o If both spouses in bad faith—
§ Testamentary dispositions by one in favor of the other are revoked by
operation of law
Void Marriage for Non-Registration (Art. 53)
• General Rule: Either of former spouses may remarry
o Requisite: Compliance with Art. 52 (Recording Requirements)
• Effect of Non-Compliance with Art. 52 on Subsequent Marriage: Null and void
Voidable Marriages
Voidable Marriages, Period and Personality to File Annulment (Art. 45)
• 18-21 years old + no consent of parents/guardian/SPA
o Ratification: Freely cohabitates after turning 21
o Period to File for Annulment:
§ No-Consent-Spouse: Within 5 years from turning 21
§ Parents of No-Consent Spouse: Before turning 21
o Qualification: If Illegitimate, consent of Mother only needed
• Unsound mind
o Ratification: Freely cohabitates after coming to reason or during lucid interval
(Insane spouse)
§ Sane spouse can’t ratify
o Period to File for Annulment:
§ Sane Spouse with No knowledge: Before death of either party
§ Parents of Insane: Before death of either party
§ Insane Spouse: Lucid interval or after regaining sanity + Before
death of either party
• Consent obtained by fraud
o Ratification: Freely cohabitates after gaining full knowledge
o Period to File for Annulment: 5 years after discovery (injured party only)
o Note: Each instance of Fraud has its own period to file
• Consent obtained by force, intimidation or undue influence
o Ratification: Freely cohabitates after disappearance or ceasing
o Period to File for Annulment: 5 years from disappearance or ceasing (injured
party only)
o Requisites:
§ Must be the determining cause of the contract
§ Unjust or unlawful
§ Serious or grave
§ Produced a reasonable and well-grounded fear from the fact that the
person who employed it has the necessary means to inflict the
threatened injury
• Physically incapable of consummating the marriage (Impotence)
o Requisites:
§ Must exist at time of celebration of marriage
§ Permanent and incurable
§ Unknown to other spouse at time of marriage
§ Other spouse not also impotent
o Period to File for Annulment: 5 years from marriage (injured party)
o Doctrine of Triennial Cohabitation: Where wife remains a virgin after 3 years
of marriage, the husband is presumed impotent
• STD
o Requisites:
§ Must exist at time of marriage
§ Serious
§ Incurable
§ Unknown to the other (may not even be known to himself)
§ The other must himself be free from such a disease
§ Note: Even if known or fact not concealed
o Period to File for Annulment: 5 years from marriage (injured party)
Instances of Fraud (Art. 46)
• Non-disclosure of a previous conviction by final judgment of a crime involving moral
turpitude
o Requisites:
§ Final judgment
§ Involves moral turpitude
§ Non-disclosure before or during celebration of marriage
• Concealment by the wife of the fact of pregnancy by another man
o Requisites:
§ Pregnancy at time of celebration
§ Woman impregnated by another man
§ Concealment from husband at time of celebration
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• Concealment of STD o Whether in the Philippines or abroad
o Requisites: • Sexual infidelity or perversion
§ Regardless of nature • Attempt on the life of the petitioner
§ Existing at time of marriage o By the respondent
• Concealment of drug addiction, habitual alcoholism or homosexuality or lesbianism o TLC: Attempt pa lang ah! There is an attempt to kill, hindi ito reckless
o Requisites: imprudence lang; you have to prove that there is really an intent to kill you
§ Existing at the time of marriage • Abandonment without justifiable cause
§ Concealment from other at time of celebration of marriage o For more than one year

Support Pending Action for Annulment Defenses in Legal Separation

• What: Support of the spouses + custody and support of common children + visitation • Condonation
rights of the other parent • Consent
• General Rule: Written agreement between the spouses • Connivance in the commission of the offense or act constituting the ground
• Exception: Court to provide support • Recrimination
o Court Considerations: • Collusion/Mutual Consent
§ Paramount consideration for the moral and material welfare of the • Prescription
said children
§ Child’s choice of parent Condonation Consent
- Given after the offense is committed - Given in advance or prior to the
Recording of Judgment (Art. 52) - In the nature of conditional forgives of commission of the act which would be
• What should be Recorded: a matrimonial offense which would be a ground for legal separation
o Judgment of Annulment, Absolute Nullity a ground for legal separation
o Partition and distribution of properties
o Delivery of presumptive legitime to the common children Connivance Collusion
• Where: Appropriate civil/property registries - An agreement, - Agreement between the parties for one of them to
• Effect of Non-Recording: Does not affect 3rd persons express or implied commit, or to appear to commit, or to be represented in
by both spouses to court as having committed, a matrimonial offense, or to
Legal Separation the ground for legal suppress evidence of a valid defense, for the purpose of
separation enabling the other to obtain legal separation
Legal Separation (Art. 55) - Corrupt accepting or - Corrupt agreeing to give rise to, or appear to have given
• Repeated physical violence or grossly abusive conduct (abusive words or language) consenting rise to a ground for legal separation
o Against Who: Petitioner, common child, or a child of the petitioner
• Change of Religion/Political Affiliation Court Procedure in Legal Separation
o Physical violence or moral pressure to compel • Who Can File: Innocent Spouse
o Against Who: Spouse • When Filed: 5 years from occurrence of cause
• Attempt to corrupt or induce to engage in prostitution, or connivance in such corruption or • Cool-Off Period (General Rule): 6 months from filing
inducement o Exception: VAWC
o Against Who: Petitioner, a common child, or a child of the petitioner § Sub Paragraphs 1, 2, 3, 8, 9, 10
o o Purpose: Reconciliation
• Final judgment sentencing the respondent to imprisonment of more than six years • Court Duty: Reconciliation
o Qualification: Even if pardoned o Qualification: Proceed when reconciliation is highly improbably despite efforts
• Drug addiction or habitual alcoholism o Exception: VAWC
• Lesbianism or homosexuality
• Contracting by the respondent of a subsequent bigamous marriage
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Right of Consortium § Qualification: Even if irrevocable
• Effect of Filing Legal Separation: Entitled to live separately from each other • Remedy: Action to revoke donation
• Administration of ACP/CPG o When Filed: Within 5 years from finality of decree of legal separation
o General Rule: Written agreement of parties • Recording of Revocation:
o Exception: Court to designate either of them or a 3rd person o Registries of property in the places where the properties are recorded
§ Same duties + responsibilities as a guardian • Effect of Revocation on Alienations/Liens/Encumbrances: Shall be respected
o Requisite:
Effects of Decree of Legal Separation § Done in good faith
• Entitled to live separately from each other § Before recording of the complaint for revocation
o Qualification: Marriage bonds shall not be severed
• ACP/CPG shall be dissolved and liquidated Requisites for Reconciliation
o Disqualification: Offending spouse shall have no right to any share of the net • Joint manifestation under oath
profits earned by the ACP/CPG • Signed
o Distribution of Share: • Where Filed: Same proceeding for legal separation
§ Common children • Note: Court order containing consequences shall be recorded in the civil registry
§ Children of guilty spouse by a previous marriage • Effects of Reconciliation
§ Innocent spouse o Pending Proceeding = Terminated
• Custody of Minor Children: Given to innocent spouse o Final Decree = Set Aside
o Note: Art. 213 and Rabuya says to parent designated by Court o Property Relations:
o Qualification: Child over 7 years old has choice § Separation of property + forfeitures effected = subsist
§ Exception: Parent deemed unfit § Exception: Property Regime may be revived or may consist of a new
§ Perpetrator of a woman who suffers from battered woman syndrome type
shall not be awarded custody of minor o Custody: Restored; community life is restored
• Parental Authority o Succession
o General Rule: Continues to be exercised jointly § Compulsory and intestate; restored
o Exception: Court decrees otherwise § Testamentary
• Successional Right of Guilty Spouse • Express revocation
o Disqualification: DQ from inheriting from the innocent spouse by intestate o Restored
and testate succession • Revocation by law or implication
o Provisions in the will of the innocent spouse shall be revoked by operation of o Remains disinherited
law o Donations Propter Nuptias: Remain revoked (if revoked)
o TLC: Testate or intestate succession
• Right to Support Revival of Property Regime
o General Rule: Obligation of mutual support ceases • Agreement to Revive
o Exception: Court may order the guilty spouse to give support to the innocent o Executed under oath
spouse • Verified motion for approval
• Use of Surname— Wife shall continue using her name + surname employed before • Where Filed: With court in the same proceeding for legal separation
legal separation • Copies furnished to creditors named
• Insurance Contract Beneficiary— May be revoked by the innocent spouse • Mandatory Provisions of Agreement:
o Properties to be contributed anew to the restored regime
Effect of Decree of Legal Separation on Donations/Insurance Designations o Those to be retained as separate properties of each spouse
• Option of Innocent Spouse o Names of all their known creditors + addresses + amounts owing to each
o May revoke the donations made by him in favor of the guilty spouse • Effect of Recording in Registries of Property
o May revoke designation as beneficiary in any insurance policy o Does not prejudice any creditor not listed or not notified
[UNTS]
o Exception: Debtor-spouse has sufficient separate properties to satisfy • Qualification: Object on valid, serious and moral grounds
• Chargeability to ACP/CPG:
Rights and Duties of Husband and Wife o Benefit accrued prior to objection—
§ Obligation chargeable to the ACP/CPG
Obligations of the Husband and Wife o Benefit accrued after the objection—
• Live together § Obligation enforced against separate property of spouse who has not
• Observe mutual love, respect and fidelity obtained consent
• Render mutual help and support
Property Relations
Family Domicile
• Husband and wife shall fix family domicile Possible Regimes in Marriage Settlement
o Qualification: Disagreement = Courts to fix • Absolute Community of Property
• Live together • Conjugal Partnership of Gains
o Exception: • Complete Separation of Property
§ Live abroad • Any other regime
§ Valid and compelling reason • Default: Absolute Community of Property
o Qualification: Must be compatible with the solidarity of the family o No Marriage Settlement or Void Marriage settlement
o Qualification: Marriage celebrated prior to Family Code
Support of the Family § Conjugal Partnership of Gains
• General Rule: Jointly responsible for the support of the family • Remarriage + Estate Settlement + No compliance with Liquidation of prior marriage—
o Source: ACP/CPG o Complete separation of property for subsequent marriage (Art. 103 and 130)
• Qualification: Fruits/income of separate property
o Requisite: In the absence of ACP/CPG Requisites of a Valid Marriage Settlement
o Insufficiency/Absence of Income/Fruits of Separate: Separate properties • In Writing
• Signed by the parties
Management of Household • Executed before the marriage
• Joint management of household • Additional Required Parties:
o Source: ACP/CPG o If party between 18-21 (Requires Parental Consent)
• Qualification: Fruits/income of separate § Person whose consent is need must also be a party
o Requisite: In the absence of ACP/CPG o If party is suffering from civil interdiction
o Insufficiency/absence of Income/Fruits of Separate: Separate properties § Court appointed guardian
• General Rule: Binds only the spouses (Contracting parties)
Application for Court Relief • Exception: Registration of MS in Local Civil Registry + Property Registry
• Who Files: Aggrieved party
• Remedy: Apply to court for relief Requisites of a Donation Proper Nuptias
• Grounds: • Donations made before its celebration
o Neglect duties to the conjugal union • In consideration of the same
o Commits acts which tend to bring danger, dishonor or injury to the other or to • In favor of one or both the future spouses
the family
Limitations of Donations Between Future Spouses
Right to Exercise Profession • ACP = No Limit
• General Rule: Exercise any profession, occupation, business or activity without consent • CGP/Other Regime = Not more than 1/5th of their present property
of the other o Validity of Excess: Void
o Note: Magna carta removed “legitimate” • Form of Donation: Governed by provisions of testamentary succession
[UNTS]
1. All property owned by the spouses at the time of celebration
Grounds Where Donor May Revoke DPN 2. All property acquired after marriage
• Who may Revoke: Donor 3. Winnings from games of chance, betting, sweepstakes, or any
o Donation may have given to either or both of the spouses other kind of gambling
What
• Marriage is not celebrated or judicially declared void ab initio a. Qualification: Legal or illegal gambling
Constitutes
o Exception: Donations made in the marriage settlements, which shall be b. Losses are not chargeable to ACP
governed by Article 81
• Marriage takes place without the consent of the parents or guardian as required by law Qualification: Property acquired during is presumed to belong to the
• Marriage is annulled + donee acted in bad faith community
o Exception: Termination of subsequent marriage upon reappearance 1. Acquired during the marriage by gratuitous title by either
§ Revoked by operation of law spouse
• Legal Separation + Donee the guilty spouse a. Includes: Fruits as well as the income thereof
• Fulfillment of a resolutory condition attached b. Exception: Expressly provided by the donor
• When the donee has committed an act of ingratitude 2. For personal and exclusive use of either spouse
a. Exception: Jewelry
Donations During Marriage Between Spouses b. Example: Law books
• General Rule: Every donation or grant of gratuitous advantage between the spouses is 3. Acquired before the marriage by either spouse who has
void What is legitimate descendants by a former marriage + fruits as well
o During the marriage Excluded as the income
o Direct or indirect 4. Improvements on Exclusive Property (cf. Art. 120)
o Includes: Those donations past the 1/5th cap for those under CPG a. Improvement (i.e, House) will always follow the land
b. If ACP funds are used to build a house on land
• Exception: Moderate gifts on the occasion of any family rejoicing
exclusively owned by one spouse, both house and lot
• Qualification: Applies to persons living together as husband and wife without a valid
become exclusive
marriage
c. The spouse needs to reimburse the AC
5. Property acquired by either spouse during marriage with funds
Absolute Community of Property
separately owned, or by exchange with separate property
Default property regime (No marriage settlement or is void) Administration 1. General Rule: Both spouses jointly
When
Governing and Enjoyment a. Exception: Other spouse may assume sole powers
When stipulated by the parties (Pre or Post Family Code) i. Requisite: One spouse incapacitated or
Joint owners of all the properties of the marriage unable to participate (without need of court
order)
All properties brought into the marriage ii. Excluded Actions:
Disposition/Encumbrance
All properties acquired during the marriage iii. Exceptions:
1. Court order
General General Rule: No waiver of rights, interests, shares and effects during 2. Written consent of other
Overview marriage iv. Qualification: Continuing Offer rule
b. In Case of Abandonment: Court Authority via
Exceptions: Summary Proceeding
1. Judicial Separation of Property 2. Disagreement: Husband’s decision to prevail
2. Marriage is annulled a. Remedy: Court action within 5 years from date of
implementation
Co-Ownership rules to apply suppletorily
[UNTS]
Note: Even if a spouse participates in negotiations, but does not sign iv. Market Value of ACP – Debts and Obligations
the contract, there is no valid consent. = Net Assets
v. Net Assets – MV at time of marriage = Net
Example: The husband wanted to sell a property owned by the ACP Profits
the wife may object. The husband may push through with the sale 5. Delivery of presumptive legitimes
over her objection but the wife can bring an action to court to rescind a. After partition
the sale b. Dissolution of ACP when marriage was annulled (Art.
Donations General Rule: Jointly donate 45)
During Marriage c. 2nd Void Marriage under Art. 40 was nullified
Qualification: Moderate donations for charity or on occasions of 6. Conjugal Dwelling + Lot
family rejoicing or distress a. General Rule: Spouse with whom the majority of the
common children choose to remain
Exception: Consent of the other spouse given i. Qualification: Children below the age of 7
When ACP 1. Death of either spouse years are deemed to have chosen the
Terminates a. General Rule: Settlement of Estate mother
b. Exception: If no estate settlement— Must liquidate ii. Exceptions:
property within one year 1. Court deems otherwise
i. Any transaction sans liquidation = void 2. If No Majority— Court to decide
2. Decree of legal separation iii. TLC: Why is this the rule? You do not want to
3. Annulment uproot the children from an environment they
4. Declared void ab initio under Art. 40 are used to
5. Judicial separation of property b. Exception: Otherwise agreed upon by the parties
Liquidation 1. Inventory Dissolution 1. Death of either spouse
Process a. Listing of all properties of ACP + exclusive properties 2. Decree of legal separation
2. Payment of debts and obligations of the absolute community 3. Marriage is annulled or declared void
shall be paid out of its assets 4. Judicial separation of property
a. Qualification: If insufficient
i. Spouses shall be solidarily liable for the Conjugal Partnership of Gains
unpaid balance with their separate At the precise moment that the marriage is celebrated
Time of
properties
Commencement
3. Delivery of remaining exclusive properties of the spouses Any other stipulation = void
a. Qualification: Special Rule on Conjugal Dwelling Marriages before the Family Code + No specified property regime
4. Division of Net Assets When
a. General Rule: Divided equally between husband and Governing
When stipulated by the parties
wife Husband and wife place in a common fund the proceeds, products,
b. Exceptions: fruits and income from their separate properties + those acquired by
i. A different proportion or division was agreed either or both spouses through their efforts or by chance
upon in the marriage settlements
ii. Voluntary waiver General Rule: No waiver of rights, interests, shares and effects during
1. Done during judicial General
marriage
iii. Net Profits: Increase in value between the Overview
market value of the community property at Exceptions:
the time of the celebration of the marriage 1. Judicial separation of property
and the market value at the time of its 2. Marriage is annulled
dissolution
[UNTS]
Presumption of CPG: Property acquired during marriage (Whether
made, contracted or registered in the name of one or both spouses)
Qualification: Does not apply where there is no showing when the
property was acquired
Exception: Contrary is proven
Partnership rules to apply suppletorily
General Rule: Net gains/benefits divided equally
Share of
Spouse upon Exception: Otherwise agree upon in the marriage settlement
Liquidation
Qualification: Subject to waiver
1. Proceeds, products, fruits and income from their separate
properties
a. TLC: The property still belongs to you, it is only the
proceeds/products/fruits that become conjugal
2. Those acquired by them through their efforts or by chance
3. Acquired by onerous title during the marriage
a. Requisite: At the expense of the common fund
b. Qualification: Whether the acquisition be for the
partnership, or for only one of the spouses
c. Exception: Acquired via right of redemption (Even if
common funds were used)
4. Obtained from the labor, industry, work or profession of either or
both of the spouses
5. Fruits, natural, industrial or civil, due or received during the
marriage from the common property
6. Net Fruits from the exclusive property of each spouse
What
7. Share of either spouse in the hidden treasure which the law
Constitutes
awards to the finder or owner of the property where the treasure
is found
8. Those acquired through occupation such as fishing or hunting
9. Livestock existing upon the dissolution of the partnership
a. Requisite: In excess of the number of each kind
brought to the marriage by either spouse
10. Acquired by chance, such as winnings from gambling or betting
a. Exception: Losses shall be borne exclusively by the
loser-spouse
11. Property Bought on Installment (Art. 118)
a. Requisite: Ownership vests during the marriage
b. Payment is made partly by exclusive and partly by
conjugal funds
c. Qualification: Reimbursal by owner upon liquidation
12. Interest on credit payable to one of the spouses (Art. 119)
a. Requisite: Interest falls due during the marriage
13. Improvement on Separate Property (Art. 120); Reverse
Accession
a. Requisite: Made at the expense of the partnership or
through the acts or efforts of either or both spouses
b. Ownership Rules:
i. Cost of improvement made by conjugal
partnership + resulting increase in value >
value of property at time of improvement =
Entire property shall now belong to CPG
1. Qualification: Subject to
reimbursement at time of
improvement (Value of
Improvement)
ii. Cost of improvement made by conjugal
partnership + resulting increase in value <
value of property at time of improvement =
Property to remain as exclusive
1. Qualification: Subject to
reimbursement at time of
improvement
c. Ownership vests only upon reimbursement
1. Brought into the marriage as his/her own
2. Acquired during the marriage by gratuitous title
a. Qualification: Donor may indicate the respective
determinate share of each spouse; absent designation
= equal sharing
3. Properties acquired by—
a. Right of Redemption
b. Barter
c. Exchange with property belonging to only one of
the spouses
4. Purchased with exclusive money
What is 5. Property Bought on Installment (Art. 118)
Excluded a. Requisite: Ownership vests prior the marriage
b. Payment is made partly by exclusive and partly by
conjugal funds
c. If that property had been disposed of before marriage +
reacquired during marriage (annulment or rescission of
contract), it remains separate
d. Qualification: Reimbursal by owner upon liquidation
6. Principal on credit payable to one of the spouses (Art. 119)
a. Qualification: Whether collected prior to or during the
marriage
7. Interest on credit payable to one of the spouses (Art. 119)
a. Requisite: Interest falls due prior the marriage
[UNTS]
8. Improvement on Separate Property (Art. 120) Transfer of Administration: Owner may transfer to other spouse
a. Requisite: Made at the expense of the partnership or administration
through the acts or efforts of either or both spouses Requisite: Public instrument recorded in the registry of property of the
b. Ownership Rules: place where the property is located
i. Cost of improvement made by conjugal Qualification: Alienation of owner during period of administration by
partnership + resulting increase in value > the other spouse automatically cancels the authority to administer
value of property at time of improvement =
Entire property shall now belong to CPG Grounds of Administration of exclusive Property of Other Spouse
1. Qualification: Subject to (Art. 142)
reimbursement at time of 1. One spouse becomes the guardian of the other
improvement 2. One spouse is judicially declared an absentee
ii. Cost of improvement made by conjugal 3. One spouse is sentenced to a penalty which carries with it civil
partnership + resulting increase in value < interdiction
value of property at time of improvement = 4. One spouse becomes a fugitive from justice or is in hiding as an
Property to remain as exclusive accused in a criminal case
c. Qualification: Subject to reimbursement at time of Donations General Rule: Jointly donate
improvement During Marriage
Administration Conjugal Partnership Property Qualification: Moderation donations for charity or on occasions of
and Enjoyment 1. General Rule: Both spouses jointly family rejoicing or distress
a. Exception: Other spouse may assume sole powers
i. Requisite: One spouse incapacitated or Exception: Consent of the other spouse given
unable to participate When CPG 1. Death of either spouse
ii. Excluded Actions: Terminates 2. Decree of legal separation
Disposition/Encumbrance 3. Annulment
iii. Exceptions: 4. Declared void ab initio
1. Court order 5. Judicial separation of property
2. Written consent of other Liquidation 1. Inventory
iv. Qualification: Continuing Offer rule Process a. Listing of all properties of CPG + exclusive properties
3. Disagreement: Husband’s decision to prevail 2. Payment of debts and obligations of either spouse
a. Remedy: Court action within 5 years from date of a. Credited as an asset of the CPG
implementation 3. Reimbursement of Spouse’s Exclusive Funds
a. Requisite: Used in the acquisition of property or for the
Exclusive Property: value of his property which has become CPG (Art. 120)
1. Owners spouse has— 4. Payment of debts and obligations of the conjugal
a. Possession partnership shall be paid out of its assets
b. Administration a. Qualification: If insufficient
c. Enjoyment i. Spouses shall be solidarily liable for the
d. Mortgage unpaid balance with their separate
e. Encumber properties
f. Alienate 5. Delivery of remaining exclusive properties of the spouses
g. Otherwise dispose 6. Payment for loss/Destruction of Movables belonging to one
2. No need for consent of other spouse spouse
3. Appear alone in court to litigate with regard to the same a. Requisites:
i. Movable used for the benefit of the family
ii. Not yet indemnified from whatever source
[UNTS]
b. Qualification: Even if due to fortuitous event Remedies for Abandonment or Failure to Comply with Obligations
7. Division of Net Assets • Receivership
a. General Rule: Divided equally between husband and • Judicial Separation of Property
wife • Authority to be the Sole Administrator of ACP/CPG
b. Exceptions: • Note: “Obligations” = marital, parental or property relations
i. A different proportion or division was agreed • Presumption of Abandonment: Has left the conjugal dwelling + no intention to return
upon in the marriage settlements o Presumption of No Intention to Return: Has left, or has failed to give any
ii. Voluntary waiver information as to his or her whereabouts for at least 3 months
1. Done during judicial
iii. Net Profits: Increase in value between the Duty of Surviving Spouse to Liquidate
market value of the community property at • No estate proceeding = Liquidate Community property
the time of the celebration of the marriage o Judicially or extra-judicially
and the market value at the time of its o Within 1 year from death of deceased spouse
dissolution • Effect: Disposition/Encumbrance of community property = Void
8. Delivery of presumptive legitimes
a. After partition Complete Separation of Property
9. Conjugal Dwelling + Lot
When Governing General Rule: Only upon judicial order
a. General Rule: Spouse with whom the majority of the
Exceptions:
common children choose to remain
1. Express declaration in marriage settlement
i. Qualification: Children below the age of 7
2. Voluntary Separation
years are deemed to have chosen the
mother
Mandatory:
ii. Exceptions:
1. No judicial/extra-judicial liquidation of community
1. Court deems otherwise
property/conjugal partnership within 1 year from death of
2. If No Majority— Court to decide
deceased spouse
iii. TLC: Why is this the rule? You do not want to
2. Reconciliation after legal separation + separation already
uproot the children from an environment they
effected
are used to
a. Exception: Agreement to revive former regime
b. Exception: Otherwise agreed upon by the parties
Dissolution 1. Death of either spouse Judicial Order
2. Decree of legal separation 1. Art. 135— Sufficient Cause for Judicial Separation of Property
3. Marriage is annulled or declared void 2. Art. 66— Revival of Regime after reconciliation in Legal
4. Judicial separation of property Separation
Effect of Separation in Fact TLC: For CPG and CSP you need a Marriage Settlement; It is only in
• General Rule: Does not affect property regime ACP where you do not need
• Exceptions: Agreement upon marriage settlement
o Spouse who left or refuses to live therein without just cause
§ No right to support Present or future property or both
o Where consent of other spouse required General
§ Acquire judicial authorization via summary proceeding Overview Total or partial
o Insufficient ACP/CPG
§ Separate property of both spouses solidarily liable Qualification: If Partial, properties not specified as separate shall be
• Acquire judicial authorization via summary proceeding part of absolute community
o To administer or encumber any specific property
[UNTS]
6. That at the time of the petition, the spouses have been
Judicial separation of property shall not prejudice the rights of separated in fact for at least one year and reconciliation is
previously acquired creditors highly improbable
1. Civil interdiction terminates
Conveyances between the spouses – prohibited – Art. 87. 2. Absentee spouse reappears
3. When the court, being satisfied that the spouse granted the
Sales between spouses – permitted – NCC Art. 1490 power of administration in the marriage settlements will not
Dispose of, possess, administer and enjoy his separate property again abuse that power, authorizes the resumption of said
Administration
administration;
and Enjoyment
Without need of consent of the other 4. Spouse who has left the conjugal home without a decree of legal
All the property he/she may own Grounds to separation resumes common life with the other
Revive Property 5. Parental authority is judicially restored to the spouse previously
Earnings from profession, business or industry Regime Existing deprived thereof
Separate before 6. When the spouses who have been separated in fact for at least
Property Fruits, natural, industrial or civil Separation of one year, reconcile and resumes common life
Property 7. Voluntary dissolution of the ACP/CPG has been judicially
Qualification: Due or received during the marriage from separate decreed upon the joint petition of the spouses+ agree to the
property revive of the former property regime
Community Exists only when separation is partial + property not specified as a. Qualification: No voluntary separation of property
Property separate may thereafter be granted
Solidary liability for Family Expenses
TLC: Take note that we need to protect the Creditors and they must
Charges Upon General Rule: Chargeable in proportion to their income be notified
Spouses General Rule: See Above
Qualification: Insufficiency/default— Exception: Applies after decree of judicial separation (I think)
Current market value of their separate properties 1. One spouse becomes the guardian of the other
1. That the spouse of the petitioner has been sentenced to a 2. One spouse is judicially declared an absentee
penalty which carries with it civil interdiction 3. One spouse is sentenced to a penalty which carries with it civil
a. Qualification: Final judgment against guilt/absent Grounds to interdiction
spouse enough to grant decree of judicial separation Transfer 4. One spouse becomes a fugitive from justice or is in hiding
2. That the spouse of the petitioner has been judicially declared Administration as an accused in a criminal case
an absentee of Exclusive 5. Voluntary Transfer
Sufficient Cause a. Qualification: Final judgment against guilt/absent Property a. Public instrument
for Judicial spouse enough to grant decree of judicial separation [GACF] b. Recorded in the registry of property of the place where
Separation of 3. That loss of parental authority of the spouse of petitioner has the property is located
Property been decreed by the court
[GALA-AbS] a. Qualification: Final judgment against guilt/absent Qualification: Court may appoint another suitable person to
spouse enough to grant decree of judicial separation administer where other spouse is not qualified by reason of
4. That the spouse of the petitioner has abandoned the latter or incompetence, conflict of interest or other just cause
failed to comply with his or her obligations to the family as 1. Verified petition
provided for in Article 101 Procedure for a. Qualification: An absolute right that may be exercised
5. That the spouse granted the power of administration in the Judicial i. May be done only once
marriage settlements has abused that power Separation b. Based on the Grounds listed in Art. 135, or Voluntarily
under Art. 136
[UNTS]
2. Creditors of ACP/CPG + Personal creditors of spouses listed Qualification: Even if one party’s or industry (must prove actual
and notified efforts consisted in taking care of contribution)
3. Liquidation + Dissolution of ACP/CPG the family and managing the
4. Record Petition + Final Judgment granting in proper local civil household (TLC: This is what we TLC: Failure to prove actual
registries and registries of property call spiritual contribution) contribution means that you
won’t get anything at all
Qualification: May be granted only once Exception: Contrary proof
Note: Cohabitation without
Art. 147 (Special Co-Ownership) Art. 148 (Limited Co- proof of contribution does not
Ownership) lead to co-ownership (in
When Requisites: Cumulative Requisites: proportion to contribution) or
Applicable 1. Man and woman are 1. Incapacitated to marry presumption of equal shares
capacitated to marry each each other or do not live Administration General Rule: Encumber or If one of the parties is validly
other exclusively with each and Enjoyment dispose of share with consent of married to another, his or her
2. Live exclusively with each other as husband and wife the other share in the co-ownership shall
other has husband and wife 2. Union is without benefit of accrue to the absolute
3. Without the benefit of marriage or under a void Exception: Termination of community or conjugal
marriage or under a void marriage cohabitation partnership existing in such
marriage valid marriage.
Note: Adulterous cohabitations
Void Marriages Covered: commenced before Family The Family
4. Where the solemnizing officer Code shall be covered by Art.
had no authority 148 Family Relations (Art. 150)
5. Where the marriage was • Between husband and wife
celebrated without a valid Void Marriages Covered: • Between parents and children
marriage license 1. Where one of the parties is • Among other ascendants and descendants
6. Where there was no valid below 18 • Among brothers and sisters
marriage ceremony 2. Bigamous or Polygamous o Qualification: Whether of the full or half-blood
7. Marriages declared void under marriage
Art. 36 (Psychological 3. Incestuous (Art. 37) Suit Between Families
Incapacity) 4. Against public policy (Art. • When Applicable: Suit between members of the same family
8. Marriages void for non- 38) • Pre-Requisite: Earnest efforts to compromise + failed
compliance with Art. 52 o Appearing in the verified petition/complaint
9. Those contracted through o Exceptions:
mistake of one contracting § Cases not subject to compromise
party as to the identity of the • Civil status of persons
other
• Validity of marriage or legal separation
• Any ground for legal separation
TLC: Do not say “co-ownership”
• Future support
alone; state whether Art. 147 or 148
Wages/Salaries Equal shares Exclusively • Jurisdiction of courts
Property Equal shares (Application of In proportion to contribution • Future legitime
Acquired Presumption) § Where 3rd parties (Strangers) are involved
During Requisite: Actual joint • Effect of Non-Compliance: Dismissal
Cohabitation contribution of money, property
[UNTS]
Family Home • Parents, ascendants, descendants, brothers and sisters
• Definition: Dwelling house + land on which it stands o Legitimate or illegitimate
o Qualification: Includes property subject of conditional sale on • Requisites to be Considered a Beneficiary:
installments o Among the relationships enumerated in Art. 150
§ Ownership reserved by vendor only to guarantee payment of the o Actually living in the family home
purchase price o Depend upon the head of the family for legal support
• Who Constitutes: Constituted jointly be husband and wife or unmarried head of the
family Benefits of Family Home
o Qualification: A person may only constitute one family home • General Rule: Exempt from—
§ Note: Subject to abandonment of first o Execution
o Unmarried head of the family o Forced sale
§ Couples in cohabitation o Attachment
• Exceptions:
How Constituted o Non-payment of taxes
• During Effectivity of Family Code: At time it is occupied as a family residence o Debts incurred prior to the constitution of the family home
• Prior to Family Code: o Debts secured by mortgages on the premises before or after such constitution
o Judicial o Debts due to laborers, mechanics, architects, builders, materialmen and others
§ Filing of verified petition before the courts § Requisite: Rendered service or furnished material for the
§ Registration of court order with the Registry of Deeds of the area construction of the building
where property is located • Requisites for Availment:
o Extra-Judicial o Constituted as a Family Home
§ Execution of public instrument o Within the allowable values
§ Registration with Registry of Property o Invoked by the Husband/Wife/Unmarried head of the family
• Qualification: Automatic recognition by operation of law § Note: Exemption is non-transferrable
o Those established prior to Family Code + existing after effectivity o Allege exemption

Requisites for Constitution Requisites for Disposition/Encumbrance

• Actually residing • General Rule: Family home may not be sold, alienated, donated, assigned or
• Part of the ACP/CPG or exclusive property of the unmarried head of the family (Art. 156) encumbered by the owner/s
o With the consent of the other spouse • Exception: Written consent of—
o Qualification: Must not be co-owned by 3rd persons (not the spouses) or must o Person constituting the same
be exclusively owned by unmarried head o Other spouse
§ May be partly community/conjugal property + partly exclusive o Majority of the beneficiaries of legal age
property with the consent of the other • Qualification: Court to decide in case of conflict
o Note: Cannot be a rented house

Duration of Recognition as Family Home Continuance of Constitution as Family Home

• From time of constitution as Family Home • Continue despite the death of one or both spouses, or the unmarried head
• Remains as long as any of its beneficiaries actually reside therein • Qualification: Applies regardless of who owns property or constituted the family home
• Note: Actual residing • Period of Continuance: Alternative
• Qualification: Actual occupancy need not be by owner; beneficiaries sufficient o 10 years after death
o As long as there is a minor beneficiary
Beneficiaries of Family Home § Requisite: Fully dependent on the person constituting for legal
• Husband and wife, or an unmarried person who is the head of a family support
[UNTS]
• Partition of Family Home During Continuance of Constitution: o With Birth Certificate of Child
o General Rule: No Partition
o Exception: Compelling reasons found by the court Requisites of Legitimation
• Conceived and born outside of wedlock
Requisites for Execution of Family Home • At the time of conception of the child parents were— (Alternative)
• There was an increase in its actual value o Not disqualified by any impediment to marry each other
• Increase resulted from voluntary improvements on the property introduced by the o Disqualified only by reason of minority
persons constituting the family home, its owners or any of its beneficiaries • After birth, his/her parents subsequently get married
• Increased actual value exceeded the maximum allowed under Art. 157 FC o Qualification: Death of child prior to subsequent marriage does not affect
status (in re: beneficial effects to child’s heirs)
Paternity and Filiation • Marriage is not void ab initio (valid or voidable)
o Exception: Void under Psychological Incapacity (Art. 36)
Legitimate Children
• Conceived or born during the marriage of the parents Proof of Filiation of Legitimate/Illegitimate Children (Art. 172)
o Includes: Born via artificial insemination • Record of birth appearing in the civil register
o Qualification: Presumption of legitimacy (Art 164) o Qualification: If unsigned by father = incompetent evidence
§ Requisites: § Exception: Father had active participation in preparation of birth
• Parents legally married certificate
• Conception or birth was during subsistence of the valid • Final judgment
marriage • An admission of legitimate filiation by parent in a—
• Conceived or born during a voidable marriage o Private handwritten instrument
o Qualification: Even if subsequently annulled o Public Instrument
• Conceived prior to termination of subsequent marriage by reason of reappearance o Requisites:
• Conceived or born prior to finality of judgement declaring marriage void under Art. 36 § Contain statement of admission of paternity or filiation
• Conceived or born in the subsequent marriage which is void under Art. 53 § Admission made personally by the parent himself/herself
• Legitimated children § Signed by the parent concerned
• Whose mother may have declared against the legitimacy/may have been sentence an • Exception: Private instrument + accompanied by other
adulteress relevant and competent evidence
• Open and continuous possession of the status of a legitimate child
Illegitimate o Requisite: Absence of first 2 modes
• General Rule: Conceived and born outside a valid marriage o Evidence of the manifestation of the permanent intention of the supposed
• Those considered illegitimate after the “Father” successfully impugns legitimacy father to consider the child as his + can’t be attributed to pure charity
o No particular length of time needed to satisfy “continuous”
• Exceptions: Marriage is void under—
o Psychological Incapacity (Ar.t 36) • Other means allowed by the Rues of Court and Special Laws
o Non-Compliance with Art. 53 o Requisite: Absence of first 2 modes
o Examples:
Children Born via Artificial Insemination § DNA Testing
• Considered legitimate • Pre-Requisite: Prima facie case or a reasonable possibility
• Requisites: of paternity or good cause for holding of the test
o Both authorized or ratified insemination § Blood Testing
o Written instrument
o Executed + signed by both spouses Grounds to Impugn Legitimacy of Child
o Done before birth of child • Physically impossible for the husband to have sexual intercourse with his wife
o Recorded in civil registry
[UNTS]
o Requisite: Impossibility must be within the first 120 days of the 300 days which 2) Husband dies
immediately preceded the birth of the child because of— after filing + no
§ Impotency desistance
• Physical incapacity of the husband to have sexual 3) Child born after
intercourse with his wife death of
§ Impossibility of Sexual Intercourse husband
• Husband and wife were living separately in such a way that Whe 1) Residing in 1) Child’s 1) Child’s Within 5 years
sexual intercourse was not possible n same Lifetime Lifetime from time their
§ Serious illness of the husband Filed: city/municipality 2) If filed by 2) If filed by cause of action
• Requisite: Absolutely prevent sexual intercourse where birth heirs heirs accrues
• Example: Comatose took place or is a) Within a) Within
o Qualification: Does not apply to conceptions by artificial insemination recorded— 5 5 years Scope of Issues:
• Biological or other scientific reasons, the child could not have been that of the husband, a) 1 year years from 1) If child was
o Exception: Artificial Insemination 2) Residing from death conceived
o Requisite: No Physical impossibility outside the death 3) Via and born out
o Example: Sterility of the father same OCEANPO of wedlock
• Artificial Insemination Consent/Ratification obtained via— city/municipality Qualification: or Other 2) Whether
o Mistake, fraud, violence, intimidation, or undue influence + within the Action ROC means parents
o Requisite: No Physical impossibility Philippines— commenced by a) Within were, at the
• Qualification: Direct attack only; can only be done by the Husband and in extreme and a) 2 years the child shall lifetime time of
limited circumstances, by his heirs 3) Residing survive of conception,
abroad notwithstanding putative not
Actions on Legitimacy Actions on Actions on a) 3 years the death of parent disqualified
Illegitimacy Legitimation either or both by any legal
Action to Impugn Action to Action to Claim Action to Counting of parties impediment
(Art. 170) Claim (Art. (Art. 173) Impugn (Art. Period: Counted or only
173) 182) from discovery or because of
knowledge of birth minority
Who 1) Husband 1) Child 1) Child Persons who are
or fact of registration 3) If the parents
May 2) Heirs of 2) Heirs of 2) Heirs of prejudiced in their
(Whichever is subsequently
File Husband Child Child successional
earlier) marry each
a) Requisite rights
other
: Default Grounds # 2: Grounds For #2:
Qualification: If the 4) Marriage is
on the part 1) Child dies 1) Child dies a
action is brought valid or
of the a minor minor
alleging that the voidable
Husband 2) Child dies 2) Child dies
child is not the 5) Note:
insane insane
offspring of the Legitimation
Ground for # 2: Art.
spouses at all, the Requisites
171
period and rules
1) Husband dies
above do not apply
before
expiration of
period to file Support

Support; What it Comprises: Everything indispensable for—

• Sustenance
[UNTS]
• Dwelling o Concurrent obligees are the spouse + child under PA
• Clothing
• Medical attendance Amount of Support
• Education • In proportion to—
o Includes: Schooling or training for some profession, trade or vocation o The resources/means of the giver
§ Even beyond age of majority o Necessities of recipient
• Transportation • May be reduced or increased proportionately according to—
o Includes: Expenses in going to and from school or place of work o Reduction or increase of the necessities of the recipient
• Qualification: In keeping with the financial capacity of the family o Resources or means of the person obliged to support
• Not subject to levy, attachment or execution
Demandability and Payment of Support
Persons Mandated to Support Each Other (Full Extent) • General Rule: From the time the person who has a right to receive the same needs it for
• Spouses maintenance
o Legitimate spouse • Support Pendete Lite: Claimed in accordance with ROC
o Adultery of other spouse is a valid defense for an action for support • When Paid: Within first 5 days of each corresponding month
• Legitimate ascendants and descendants o Qualification: Paid only from date of judicial or extrajudicial demand
• Parents and their legitimate children + legitimate and illegitimate children of the latter • Qualification: Heirs do not have to return support received in advance
• Parents and their illegitimate children + legitimate and illegitimate children of the latter
Choices of Obligor as to Manner of Support
• Brothers and sisters
o Full or Half-Blood • Paying allowance fixed
o Legitimate or illegitimate • Receiving and maintaining in the family dwelling the person who will be supported
o Exception: Right to support of illegitimate bro/sis, of legal age, ceases when o Exception: Moral or legal obstacle
the need for support, is due to a cause imputable to the claimant’s fault or
negligence Parental Authority

Order of Who Shall Give Support Who Exercises Parental Authority

• Spouses • Father and Mother
• Descendants o General Rule: Jointly exercise
o Nearest degree • Exceptions: Mother only
• Ascendants o Illegitimate child
o Nearest degree § Exception to this Exception:
o Tender Age Presumption
• Brothers and sisters
§ Exception to this Exception: Compelling reasons
• If duty to support falls upon 2 or more persons— Divided between them in proportion to
• Qualification: In case of disagreement— Father’s decision to prevail
resources
o Exception: Contrary judicial order
o Qualification: Judge may order one person to furnish support provisionally
§ Requisites: • Legal Separation of Parents
o Who Shall Exercise PA: Court to designate the parent who shall exercise PA
• Urgent need + special circumstances
§ Usually the innocent spouse
• Without prejudice to his right to claim from others the share
due them
Substitute Parental Authority
• Requisite: Death, absence or unsuitability of parents + no court designation
2 or More Claimants of Support
• Surviving Grandparent
• 2 or more claim from same person + person has insufficient means to satisfy all claims
o If several— Court designated
• General Rule: Follow order of who shall give support (Art. 199)
• Oldest Brother/Sister
• Exception: Child is Preferred
[UNTS]
o Over 21 years of age Grounds for Suspension of PA
o Exception: Unfit or disqualified • Conviction for a crime that carries with it the penalty of Civil Interdiction
• Child’s actual custodian o Qualification: Automatic reinstatement upon—
o Over 21 years of age § Service of penalty
o Exception: Unfit or disqualified § Pardon
• Foster Parents § Amnesty
o Qualification: Only has the same authority as those exercising Special PA • Treats the child with excessive harshness or cruelty
• Qualification: Same authority over the person as the parents • Gives the child corrupting orders, counsel or example
• Compels the child to beg
Foundlings, Abandoned, Neglected or Abused Children • Subjects the child or allows him to be subjected to acts of lasciviousness
• Who Exercises PA: Heads of children’s homes, orphanages and similar institutions • Qualification: 4 next immediately preceding grounds include cases which result from
o Duly accredited by the proper government agency (DSWD) culpable negligence on the person exercising PA
• How Appointed: Summary judicial proceedings o Court may order other measures (not suspension) as the circumstances
warrant
Special Parental Authority • Qualification: Court may order deprivation of PA
• School o Seriousness of offense warrants or welfare of child so demands
• School Administrators • Restoration of PA: Court action + Cause has ceased + will not be repeated
• Teachers
• Individual entity/institution engaged in child care Matters Covered by Summary Proceedings under the Family Code
• Requisite: While under their supervision, instruction or custody • Declaration of presumptive death (Art. 41)
o Limited and present only when the child is under the SIC • Delivery of presumptive legitimes to legitimate Children (Art. 51)
• Qualification: Whether inside or outside of school premises, entity or institution • Disagreement on the fixing of Family Domicile (Art. 69)
• Can’t inflict corporal punishment • Exemption from living with the spouse
• Co-exists with the parents’ PA • Disagreement on profession, occupation, business or activity (Art. 73)
• Disagreement on administration and enjoyment of community property or conjugal
Liability of Persons Exercising Parental Authority partnership (Art. 96/124)
• Civilly liable for injuries and damages caused by the acts or omissions of their • Petition to be sole administrator of the common or conjugal properties
unemancipated children • Separation de facto + judicial authorization for a transaction needed
• Subject to appropriate defenses available o Requisites:
§ Attach proposed deed
Liability of Person Exercising Special Parental Authority § Details for the transaction
• Acts or omissions of the unemancipated minor § Reason why the required consent can’t be secured
• Extent of Liability: Principally and solidarily liable for damages • Separation de facto or abandonment + petition to administer/encumber specific separate
• Exception: Proven to have exercised proper diligence required under the circumstances property (Art. 239)
• Qualification: Parents, Judicial guardians, persons exercising sub-PA • Entrusting to heads of institutions foundlings, abandoned, neglected or abused children
o Subsidiarily liable (Art. 217)
• Disciplinary measures over the child (Art. 223)
Permanent Termination of Parental Authority • Approval of bond over property of child (Art. 225)
• Death of parents Process of Summary Proceeding
• Death of child • Petition
• Emancipation of child o Inclusions in Petition:
• Subjected the child, or allowed to be subjected to sexual abuse § Affidavits (Your and + witnesses)
§ Pertinent documents (i.e, Deed of Sale of a property of the ACP
sought to be sold)
[UNTS]
• Notice to other Spouse Succession
• Preliminary Conference • Adopter and Adoptee shall have reciprocal rights of succession
o No counsel o Relationship = legitimate
• Court to proceed ex parte • If adoptee and biological parents leaves a will—
• Render Judgment o Law on testamentary succession shall govern
o Based on affidavits, documentary evidence or oral testimonies
Effects of Adoption
Surnames • Sever all legal ties between the biological parents and the adoptee
o Exception: Adopter = Spouse of the Adopter
• Deem the adoptees a legitimate child of the adopter
Surname of Married Woman • Give adopter and adoptee reciprocal rights and obligations arising from the relationship
• Use of husband’s surname is permissive and not obligatory of parent and child
• Options of Married Woman: o Right of the adopter to choose the name the child is to be known
o Maiden first name and surname + husband’s surname o Right of the adopter and the adoptee to be legal and compulsory heirs of each
o Maiden first name + husband’s surname other
o Husband’s full name + Prefix with Mrs • Adoption is strictly between adopter and adopted
o Not using the surname of the husband • If adopting parent should die before adopted child, latter cannot represent the adopter in
§ TLC: Allowed by jurisprudence; must be no confusion that they are the inheritance from the parents and ascendants of the adopter
married to each other • Adopted child is not related to the deceased in that case because filiation created by
• In case of legal separation— fiction of law is exclusive between adopted and adopter
o Continue to use name and surname used prior to legal separation\ • By adoption, the adopters can make for themselves an heir but they cannot make on for
o TLC: Take note that you are still married; it will only cause more confusion if their relatives
you are allowed
• In case of annulment— Who may Adopt (Sec. 7; Domestic Adoption)
o If guilty— • Any Filipino citizen
§ Resume to use maiden name and surname o Legal age
o If not guilty— Alternatives o Full civil capacity and legal rights
§ Resume her maiden name and surname o Good moral character
§ Continue using the former husband’s surname o Not convicted of a crime involving moral turpitude
• Exception: o Emotionally and psychologically capable of caring for children
o Court orders otherwise o At least 16 years older than the adoptee
o Former husband or her remarry § Exception: Adopter =
• In case of death of husband— (Alternatives) • Biological parent
o Resume to use maiden name and surname • Spouse of adoptee’s parent
o Continue employing deceased’s surname as if still living o In a position to support and care for his children in keeping with the means of
the family
Adoption • Any Alien
o Same qualifications as above
Parental Authority o Additional Requirements:
• General Rule: All legal ties between the biological parent and the adoptee severed § Country has diplomatic relations with the Philippines
o Vested on the adopters § Living in the Philippines for at least 3 continuous years prior to filing
• Exception: Biological parent = Spouse of Adopter § Certified by his diplomatic or consular office to have legal capacity to
adopt in his country
[UNTS]
§ Government allows the adoptee to enter his country as his adopted o Cang v CA: Even if biological parents are known, their consent is not required if
child they have abandoned the child
o Waiver of Residency and Certification Requirements: § Abandonment: Neglect and refusal to perform the filial and legal
§ Former Filipino who seeks to adopt a relative within the 4th degree of obligations of love and support
consanguinity or affinity o Intended to protect the natural parental relationship form unwarranted
§ Seeks to adopt a legitimate child of his Filipino Spouse interference by interlopers
§ Married to a Filipino citizen + seeks to adopt jointly with his spouse a o Insure the opportunity to safeguard the best interests of the child in the manner
relative within the 4th degree of the Filipino Spouse of the proposed adoption
• Guardian with respect to his ward • Legitimate and adopted children
o After termination of the guardianship + clearance of financial accountabilities o 10 years and above of the adopters and adoptee
o Ensures harmony among the prospective siblings
Joint Adoption (Sec. 7; Domestic Adoption) o Puts on notice that they will have to share their parent’s love and care, as well
• General Rule: Husband and Wife shall jointly adopt as their future legitimes, with another person
o In consonance with joint parental authority over the child • Illegitimate children of the adopter
o Filing of dissolution of marriage is irrelevant in joint adoption cases o 10 years and older
§ Until and unless there is a judicial decree of dissolution, the marriage o Living with the adopter and the latter’s spouse (if any)
subsists • Spouse of the person adopting or to be adopted
• Exception:
o One seeks to adopt the legitimate child of one spouse by the other spouse Rescission (Sec. 19; Domestic Adoption)
o One seeks to adopt his own illegitimate child • Who Files: Adoptee of legal age
§ Requisite: Other spouse must give consent o If minor— with assistance of the Department
o Spouses are legally separated from each other o If of age + incapacitated— Guardian or Counsel
o Note: Since adoption is for the best interest of the child, it shall not be subject
Who may be Adopted (Sec. 8; Domestic Adoption) to rescission by the adopter
• Minor • Where Filed:
o Administratively or judicially declared available for adoption o Family court of the city where the adoptee resides
o TLC: We do not anymore recognize direct adoption where the parents directly • When Filed: Within 5 years after reaching age of majority
give their child to their adopters o If incompetent at time of adoption— Within 5 years after recovery from
• Legitimate child of one spouse incompetency
• Illegitimate child by a qualified adopter • Grounds for Rescission
o To raise the status to legitimate o Repeated physical and verbal maltreatment
• Person of legal age, consistently considered and treated by adopter as their own child § Despite counselling
o Prior to adoption o Attempt on the life
• Child whose adoption has been rescinded o Sexual assault/violence
• Child whose biological parents have died o Abandonment or failure to comply with parental obligations
o Qualification: No proceedings within 6 months form time of death
Effects of Rescission
Consent Necessary (Sec. 9; Domestic Adoption) • Restores:
• Adoptee o Parental authority of Biological parents or custody of Department/Agency
o If 10 years of age or over o Original Birth Certificate
• Biological parents o Successional rights prior to adoption
o If known § Vested rights prior to judicial rescission shall remain
o Or legal guardian or proper government instrumentality with custody • Cancels/Extinguishes:
o Reciprocal rights and obligations extinguished
o Cancellation of amended Birth Certificate
[UNTS]
Inter-Country Adoption o At least 16 years older than child
• Socio-legal process of adopting a Filipino child by a foreigner or a Filipino citizen § Exception:
permanently residing abroad where the petition is filed, the supervised trial custody is • Petitioner is the parent by nature of the child
undertaken, and the decree of adoption is issued outside the Philippines • Spouse of such parent
• Child: A person below 15 years of age unless sooner emancipate d by law • If married—
• Authorized And Accredited Agency: State welfare agency or a licensed adoption o Spouse to jointly file
agency in the country of the adopting parents which provide comprehensive social • Capacity to act and assume all rights and responsibilities of parental authority under his
services and which is duly recognized by the Department national laws
• Legally-free child: A child who has been voluntarily or involuntarily committed to the • Not been convicted of a crime involving moral turpitude
Department, in accordance with the Child and Youth Welfare Code • Eligible to adopt under his national law
• Can provide proper care and support and instill necessary moral values
When Inter-Country Adoption Allowed • Agrees to uphold the basic rights of the child and abide by the rules and regulations
• Last Resort Rule o Philippine Laws and UN convention on Rights of the Child
• Requisites: • Possess all the qualifications and one of the disqualifications provided in RA No. 8043
o Adoption under the Family Code exhausted and other applicable laws
§ Possibilities exhausted • Comes from a country with diplomatic relations with the Philippines + Government
o Inter-Country Adoption is in the best interest of the child maintains a similarly authorized accredited agency + adoption of Filipino allowed under
§ Serves and protects her fundamental rights his national laws
§ RSE: “Best interest of the minor” standard
• Qualification: Maximum of 600 foreign adoptions per year Grounds for Change of First name or Nickname
o For the first 5 years • Petitioner finds the first name or nickname to be ridiculous, tainted with dishonor or
extremely difficult to write or pronounce
Family Selection • New first name or nickname has been habitually and continuously used by the petitioner
• General Rule: No foreign adopter unless shown that the child can’t be adopted locally o Has been publicly known by that first name or nickname in the community
• Acquire clearance from board stating inability for local adoption • Change will avoid confusion
• Adoptive Parent/s shall personally fetch the child
DOMESTIC INTER-COUNTRY
Best Interests of the Child (Sec. 7) Definition
• Inter-country adoption is allowed only when the same shall prove beneficial to the child’s Legal process of adopting a Filipino child Socio-legal process of adopting a Filipino
interest and shall serve and protect his/her fundamental rights by Filipinos and/or aliens residing in the child by a foreigner or a Filipino citizen
• In all actions concerning children, whether undertaken by public or private social welfare Philippines for at least 3 consecutive years permanently residing abroad where the
institutions, court of law, administrative authorities or legislative bodies, the best interest petition is filed, the supervised trial custody
of the child shall be a primary consideration is undertaken, and the decree of adoption
is issued outside the Philippines
Who may Be Adopted (Sec. 8; Inter-Country Adoption) Type of Proceeding
• Legally Free Child: Has been voluntarily or involuntarily committed to the DSWD, or to a Judicial Extra-Judicial
duly licensed and accredited child-placing agency or child-caring agency, freed of the Where to File
parental authority of his/her biological parent/s or guardian/s or adopter/s in case of Family court where prospective adopters 1) Family court where the adoptee
rescission of adoption reside resides or may be found
2) Inter-Country Adoption Board via an
Who may Adopt (Sec. 9; Inter-Country Adoption) intermediate agency (Whether
• Aliens or Filipinos permanently residing abroad governmental or an authorized and
• Age of Adopter and Adoptee accredited agency in the country of the
o At least 27 years old prospective adoptive parents)
[UNTS]
Who May Adopt
1) Filipino Citizen
2) Aliens
3) Guardian with respect to the ward
after the termination of the
guardianship and clearance of his
financial accountabilities
4) Any Filipino citizen
a) Legal age
b) Full civil capacity and legal rights
c) Good moral character
d) Not convicted of a crime involving 3) Has the capacity to act and assume all
moral turpitude
e) Emotional and psychologically
capable of caring for children
f) At least 16 years older than the
adoptee
i) Exception: Adopter =
(1) Biological parent
(2) Spouse of adoptee’s
parent
g) In a position to support and care
for his children in keeping with
the means of the family
5) Any Alien
a) Same qualifications as above
b) Additional Qualifications:
i) Country has diplomatic
relations with the Philippines
ii) Living in the Philippines for
at least 3 continuous years
prior to filing
iii) Certified by his diplomatic or
consular office to have legal
capacity to adopt in his
country
iv) Government allows the
adoptee to enter his country
as his adopted child
c) Waiver of Residency and
Certification Requirements:
i) Former Filipino who seeks to
adopt a relative within the 4th
Foreign nationals and Filipino Citizens
permanently residing abroad
1) Age of Adopter and Adoptee
a) At least 27 years old
b) At least 16 years older than child
i) Exception:
(1) Petitioner is the parent
by nature of the child
(2) Spouse of such parent
2) If married— Spouse to jointly file
rights and responsibilities of parental
authority under his national laws
4) Not been convicted of a crime
involving moral turpitude
5) Eligible to adopt under his national law
6) Can provide proper care and support
and instill necessary moral values
7) Agrees to uphold the basic rights of
the child and abide by the rules and
regulations
8) Possess all the qualifications and one
of the disqualifications provided in RA
No. 8043 and other applicable laws
9) Comes from a country with diplomatic
relations with the Philippines +
Government maintains a similarly
authorized accredited agency +
adoption of Filipino allowed under his
national laws
10) Possesses al the qualifications and
none of the disqualifications
degree of consanguinity or
affinity
ii) Seeks to adopt a legitimate
child of his Filipino Spouse
iii) Married to a Filipino citizen +
seeks to adopt jointly with
his spouse a relative within
the 4th degree of the Filipino
Spouse
6) Guardian with respect to his ward
a) After termination of the
guardianship + clearance of
financial accountabilities
7) General Rule: Husband and Wife
shall jointly adopt
a) In consonance with joint parental
authority over the child
b) Filing of dissolution of marriage is
irrelevant in joint adoption cases
i) Until and unless there is a
judicial decree of dissolution,
the marriage subsists
8) Exception:
a) One seeks to adopt the legitimate
child of one spouse by the other
spouse
b) One seeks to adopt his own
illegitimate child
i) Other spouse must give
consent
Who May Be Adopted
9) Minor who has been administratively Legally free child (Under 15 years old)
or judicially declared available for
adoption One who, in accordance with the Child and
10) Legitimate child of one spouse Youth Welfare Code, has been voluntarily
11) Illegitimate child by a qualified adopter or involuntarily committed to the DSWD, or
12) Person of legal age, consistently to a duly licensed and accredited child-
considered and treated by adopter as placing agency or child-caring agency,
their own child freed of the parental authority of his/her
13) Child whose adoption has been biological parent/s or guardian/s or
rescinded adopter/s in case of rescission of adoption
14) Child whose biological parents have
died Note: Last Resort Rule
15) Child not otherwise disqualified by law
or these rules
[UNTS]
Whose Consent Needed adoptee to enter his country as his 5) Income tax returns or any authentic
1) Adoptee --- own adopted child unless exempted document showing the current
a) If 10 years of age or over under Sec. 4(2) financial capabilities of the petitioner
2) Biological parents 5) Home study report on the adopters 6) Police clearance of petitioner issued
a) If known 6) Decree of annulment, nullity or legal within six months before the filing of
b) Or legal guardian or proper separation of the adopter as well as the petitioner
government instrumentality with that of the biological parents of the 7) Character reference from the local
custody adoptee, if any church/minister, the petitioner’s
3) Legitimate and adopted children employer and a member of the
a) 10 years and above of the immediate community who have
adopters and adopter known the petitioner for at least 5
4) Illegitimate children of the adopter years
a) 10 years and older 8) Full body postcard-size pictures of the
b) Living with the adopter and the petitioner and his immediate family
latter’s spouse (if any) taken at least 6 months before filing of
5) Spouse of the person adopting or to the petition
be adopted Court that Issues Decree of Adoption
What Petition for Adoption may Include Family Court Foreign Court
1) Prayer for change of name None Flow
2) Rectification of simulated birth 1) Filling of Petition for Adoption 1) File application to adopt before the
3) Declaration that the child is a 2) Order of Hearing Inter-Country Adoption Board (ICAB)
foundling, abandoned, dependent or 3) Publication of Order of Hearing through the Central Authority of the
neglected 4) Preparation and Submission of child Foreign Adoption Agency
Supervised Trial Custody and home study reports by the Social a) File Petition before RTC with
1) At least 6 months; reducible or may be 1) At least 6 months worker jurisdiction over Child
exempted (Foster Parents) 2) Within the country of the adopter 5) Social worker to verify with the civil b) RTC to refer the petition to the
2) Within the Philippines registry the real identity and registered ICAB
Publication Requirement name of the adoptee and establish 2) Family Selection and Matching of the
1x 3 in the NGC where the court is situated No publication requirement that the child is legally available for prospective adoptive child with the
adoption applicant— Matching proposal given
6) Hearing (Within 6 months from the to the Central Agency or Foreign
1) Birth, baptismal or foundling 1) Birth certificate of petitioner issuance of the Order of Hearing) Adoption Agency
certificate, as the case may be, and 2) Marriage contract, if married and if 7) Supervised Trial Custody 3) Acceptance of the Matching Proposal
school records showing the name, age applicable the divorce decree or 8) Social Worker’s report on the result of by the applicant and Assessment of
and residence of the adoptee judgment dissolving the marriage trial custody Pre-Adoptive Placement fees
2) Affidavit of consent 3) Sworn statement of consent of 9) Decree of adoption 4) ICAB issuance of Placement Authority
3) Child study report on the adoptee and petitioner’s biological or adopted 10) Issuance of Certificate of Finality upon within 3 working days from receipt of
his biological parent children above 10 years of age expiration of 15-day period to appeal acceptance of matching proposal and
4) If the petitioner is an alien— 4) Physical, medical and psychological 11) Adopter to submit a certified true copy corresponding fees
certification by his diplomatic or evaluation of the petitioner certified by of the decree of adoption and the a) ICAAB shall furnish the DFA and
consular office or any appropriate a duly licensed physician and certificate of finality to the Civil the Central Authority or Foreign
government agency that he has the psychologist Registrar Adoption Agency copies of the
legal capacity to adopt in his country 12) At the Civil Registrar: Placement Authority
and that his government allows the a) Annotation of the decree on 5) Trial Custody
adoptee’s original birth certificate
[UNTS]
b) Issuance of birth certificate a) Applicant personally fetches the
without notation that it is new or adoptive child from the
amended Philippines for trial custody not
c) Sealing of or original birth later than 20 working days after
certificate notice of issuance of the visa of
d) Submission of proof of the child for travel to the country
compliance where the applicant resides
6) ICAB transmits Affidavit of Consent to
Adoption to the Central Authority or
Foreign Adoption Agency within 15
days from receipt of last post-
placement report
7) Filing of Petition for Adoption by the
adoptive applicants in the court or
tribunal in accordance with their
national law
8) Decree of Adoption must be
transmitted by the Central Authority or
the Foreign Adoption Agency to the
ICAB
9) Recording of the judgment in the
Appropriate Civil Registry in the
Philippines
[UNTS]
PROPERTY
PROPERTY RELATIONS
Movable and Immovable Property
Classes of Immovable Property
• By their nature: Those cannot be moved from place to place
o Examples: land, mines, quarries, slag dumps
• By incorporation: Attached to an immovable in a fixed manner to be an integral part
thereof
o Examples: Par. 1 (XPN land, buildings, roads). 2-4
• By their destination: Placed in an immovable for the utility it gives to the activity carried
thereon
o Essentially movables, but by the purpose for which they have been placed in
an immovable partake of the nature of the latter because of the added utility
derived therefrom
o Examples: Pars. 4, 5, 6, 7, 8
• By analogy: By express provision of law
o Examples: Par. 9 and 10
Immovable Property
• Land, buildings, roads and constructions of all kinds adhered to the soil [NATURE;
INCORPORATION]
o Requisites:
§ Attached permanently to the land
§ Must not be of provisional or temporary character but fixed or integral
• Trees, plants, and growing fruits, while they are attached to the land or form an
integral part of an immovable [NATURE; INCORPORATION]
o Requisite: Attached to the land or form an integral part thereof
o Trees: When cut or uprooted = movable
§ Exception: Timber constitutes the natural product of the tenement
• Form an integral part of the immovable
o Growing Fruits: As long as attached to the soil
§ Exception: Treated as personal when they are for the purpose of
sale of the whole or part of the crops
o TLC: Once they are harvested or severed form the ground they are personal
property
§ Contracting parties may treat growing trees, plants and fruits as
movable property; but this agreement binds only them
• Everything attached to an immovable in a fixed manner [INCORPORATION]
o Requisite: It cannot be separated therefrom without breaking the material or
deterioration of the object
• 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
[INCORPORATION]
o Requisites:
§ Placed by the owner of the building or land
• Qualification: May be through agency or subsequent
ratification
• If placed by mere holder/tenant/usufruct/one with
temporary right over the immovable, these objects do not
become immovable
§ Attachment is intended to be permanent
• Machinery, receptacles, instruments or implements [DESTINATION]
o Requisites:
§ Placed by the owner of the tenement, building or land
§ 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
§ Essential, necessary and principal elements of the industry or works
• Tend directly to meet the needs of the said industry or
works
§ Industry or work is carried on in a building or piece of land, building of
the tenement
o General Rule: It is the owner is the one places it
o Exception: Tenant/Lessee is the one that places it
§ Agreement between the lessor-owner and lessee that after
termination of the lease, such machinery shall be left behind to be
part of the building, tenement, land of the owner
• Animal houses, pigeon-houses, beehives, fish ponds or breeding places of similar
nature; the animals in these places are included [DESTINATION]
o Requisites:
§ Owner has placed them or preserves them
§ With the intention to have them permanently attached to the land and
forming a permanent part of it
• Fertilizer [DESTINATION]
o Requisite: Actually used on a piece of land
• Mines, quarries, and slag dumps [DESTINATION]
o Requisite: Matter forms part of the bed, and waters either running or stagnant
• Docks and structures which, though floating [ANALOGY]
o Requisite: Intended by their nature and object to remain at a fixed place on a
river, lake, or coast
• Contracts for public works, and servitudes and other real rights [ANALOGY]
o Examples:
§ Easement
§ Real Estate Mortgage
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Par. 3 Par. 4 Kinds of Possessory Actions of Real Property
- Need not be placed by owner - Must be the owner that places the • Accion Interdictal: Summary action for Forcible entry and detainer which seeks the
- Property cannot be separated immovable recovery of physical possession only and is brought within one year in the justice of the
therefrom without deterioration - Intention to attach permanently must be peace of court
shown o Note: See Annex_Mandamunts
- Separation without deterioration is possible • Accion Publiciana: Recovery of the right to possess and is a plenary action in an
ordinary civil proceeding in a RTC
Ownership • Accion de Reinvindicacion: Seeks the recovery of ownership (which includes right to
use and to fruits) also brought in a RTC
Rights of Ownership
1. Right to Enjoy 7. Right to Recover Accion Interdictal Accion Publiciana Accion de Reivindicacion
2. Right to Fruits 8. Right to exclude others from the property (Ejectment)
3. Right to Possess: Actual 9. Right to enclose or fence his property - Summary action for - Plenary action for - Seeks recovery of
possession under a claim of 10. Right to compensation in case of eminent forcible entry or unlawful recovery of the right to ownership as well as
ownership raises a disputable domain detainer possess when the possession
- Recovery of physical dispossession has lasted - Includes the jus
presumption of ownership 11. Right to surface, sub-surface and space
possession where the for more than one year possidendi
4. Right to Use above the land Dispossession has not - Recovery of the right to - Action whereby a party
5. Right to Consume or Abuse 12. Right to hidden treasure lasted for more than one possess claims recovery of
6. Right to Dispose 13. Right of Accession year - Dispossession has lasted ownership over the
- Brought where for more than one year or property including the
Expropriation For Public Use dispossession of real when effected by means possession thereof
• Ground: For public use property has taken place other than those - Note: Different from
• General Rule: No person shall be deprived of his property under any of the means mentioned in Sec. 1, Rule interdictal and publiciana
in Sec. 1, Rule 70; 70 as those actions merely
• Exception: By competent authority and for public use and always upon payment of just - Provides an expeditious - A plenary action in an allege proof of a better
compensation means of protecting ordinary proceeding in right to possess without
actual possession of the CFI claim of title
Condemnation for General Welfare property - Determines the better
• Property may be condemned or seized by competent authority - Filed within 1 year after right of possession
• Ground: General interest of health, safety or security the unlawful deprivation independently of title
or deprivation
• General Rule: Owner not entitled to compensation
- 2 forms of an ejectment
• Exception: Condemnation or seizure is unjustified suit to recover
possession of real
Extent of Ownership property
• Extent of Ownership: Owner of a parcel of land also owns—
o Its surface REPLEVIN (RULE 60)
o Everything under it • Both a form of a principal remedy and of a provisional relief
• General Rule: He can construct any works or make any plantations and excavations o Principal Remedy: Ultimate goal is to regain the possession of personal chattels
o Which he may deem proper being wrongfully detained from the plaintiff by another
• Qualification: That it be without detriment to servitudes + subject to special § Seeks a determination of the right of possession of personal property
laws/ordinances o Provisional Remedy: Allows the plaintiff to retain the thing during the pendency
• Note: Owner cannot complain of reasonable requirements of aerial navigation of the action and hold it pendete lite
§ What is contemplated by Rule 60
§ Seeks possession of the property prior to the final determination of the
action
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• Party applies for the delivery of the property subject of the action during its pendency Accession
• When do you avail:
o At the commencement of the action Concept of Hidden Treasure (Art. 438-439)
o Any time before answer • Hidden and unknown deposit
• Consists of money, jewelry and other precious objects
Real Rights Personal Rights • Lawful ownership does not appear
- Confer upon its holder an autonomous power to derive - Demand from another as a
directly from a thing certain economic advantages definite passive subject, the Rules on Share in Hidden Treasure
independently of whoever the possessor of the thing fulfillment of a prestation to
Finder Share
give, to do, or not to do
Elements: Owner of land, building or property where All the treasure belongs to him
- Definite subject who has a right against persons as an treasure was found
indefinite passive subject Not the owner thereof ½ to him; ½ to owner
- Directed against the whole world
- Object is a corporeal thing (Usually) (Not a Trespasser)
- Extinguished by destruction or loss of the thing Merely employed by owner General Rule: No share in the treasure, but
should be paid his wages
General Limitations
• Taxation Power Exception: Contrary agreement (Wages +
• Police Power Share)
• Eminent Domain Trespasser No share in the treasure

Specific Limitations Kinds of Accession

• Legal Servitudes • Accession Discrete: Right of the owner of a property to whatever is produced thereby or
• Actions in a state of Necessity to the fruits of the same
• Nuisance o Natural + Industrial + Civil
• Voluntary Limitations o Exceptions:
o Example: Voluntary Easements § Usufruct (Natural + Industrial + Civil)
• Limitations imposed by Transferor § Lease or rural land (Natural + Industry)
o Example: Conditions imposed in a sale, donation etc. § Antichresis
§ Possessor in good faith
Requisites of Principle of Self-Help • Before his possession is legally interrupted
• Actual or threatened physical invasion or usurpation of property § Fruits natural falling on an adjacent land belonging to another
• Invasion or usurpation must be unlawful • Accession Continua: That which takes place when the property of another is
• Owner or lawful possessor the one defending the property incorporated to ours
• Reasonably necessary force to repel the invasion or usurpation o Right to acquire whatever is attached or incorporated naturally or artificially to
• Exercised at the time of an actual or threatened dispossession or immediately after our things
dispossession o Immovable
§ Accession industrial
Requisites of Doctrine of State of Necessity • Building, planting or sowing
• An imminent danger and threatened damage to the actor or 3rd person § Accession natural
• Interference to another’s property to avert such danger and damage • Alluvion, avulsion, change of course of river or formation of
• Said damage is much greater than damage to the property of the 3rd person islands
o Movable
§ Adjunction/Conjunction
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§ Commixtion (Solids) Good Faith Builder
§ Confusion (Liquids) • Believes that he is the owner of the land or that by some title he has the right to build
there on, or he has a claim of title thereto
Basic Principles In Accession [TLC] • Requisites:
• Accessory follows the principal o Possessor in the concept of an owner
• Union or incorporation must, with certain exceptions, be effected in such a manner that to § Can be invoked by a successor-in-interest of a builder in good faith
separate the principal from the accessory would result in substantial injury to either o Unaware that there exits in his title or mode of acquisition any flaw which
• He who is in GF may be held responsible but shall not be penalized invalidates it
• He who is in BF shall be penalized
• BF of one party neutralizes the BF of the other so both shall be considered in GF Rights and Obligations of Landowner in Rights and Obligations of B/P/S in Bad
• No one should be unjustly enriched at the expense of the other Good Faith Faith
Right of Appropriation without payment of No right except reimbursement of
Landowner Plants, Constructs, Or Works On His Land Using The Materials Of Another indemnity + Damages necessary expenses for preservation of
• If landowner is in good faith – Right to Demand Removal or Demolition (At land
o Keep the materials B’s Expense) + Damages
o Pay the owner of the materials for the value of the materials Right to Demand Price of Land or Rent + TLC: Under the principle of unjust
• If landowner is in bad faith – Damages enrichment this is the rule; take not of the
o Pay the owner of the materials for the value of the materials distinctions between Art. 448 and Arts. 449-
o Must also pay damages Qualification: Regardless of the value of 452
• Right To Remove By The Owner Of The Materials land (whether considerably more than value
o General Rule: Owner of materials can remove the materials of Building + Trees)
§ Requisite: If he can do so without injury to the work or destruction to
the plantings, construction or work done Rights and Obligations of Rights and Obligations of B/P/S in Good Faith
o Exception: When the landowner is in bad faith Landowner in Bad Faith
§ Owner of the materials can remove in any event + indemnity for Pay for Materials + Pay Payment for Materials + Damages
damages Damages
Allow Removal of Materials + Remove materials + Damages
Rights and Obligations of Landowner in Rights and Obligations of B/P/S in Good Pay Damages • Qualification: Even if removal will cause injury
Good Faith Faith
Right of appropriation after payment of Right of reimbursement of necessary and Requisites of Alluvion
indemnity provided in Arts. 546 and 548 useful expenses • Deposit of soil is gradual and imperceptible
• Cause is the current of the river
Right of retention until paid o Exclusive work of nature and not a result of human intervention
• River must continue to exist
Right to compel B/P to pay the price of the Right to buy the land upon which the • Increase must be comparatively little
land and S, the proper rent building has been built or trees have been • Lands where accretion takes place must be adjacent to the banks of the river
planted
Exception: Value of the land is Requisites of Avulsion
considerably more than value of the Exception: Value of land is considerably • Segregation or transfer caused by the current of a river, creek, or torrent
building or trees more than value of the building or trees • Segregation or transfer must be sudden or abrupt
- Remedy: Forced lease is the remedy, - Remedy: Forced lease shall result • Portion of the land transported known or identified
the terms of which is as per agreement • Caused only by the force of the current of the water independently of the act of man (Not
of the parties. In case of disagreement, included by TLC)
the court shall fix the terms thereof
• Effect: The owner of the land to which the segregated portion belongs retains ownership
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o Requisite: Provided he removes (not merely claims) the same within 2 years § Belongs to owners of the margins or banks nearest to the island
from such segregation § If in the middle of the river
§ Mere claim of ownership is insufficient • Owners of both margins, divided longitudinally
§ If more distant from one margin than the other
Uprooted Trees • Owner of nearer margin shall be sole owner
• What: Trees uprooted and carried away by the current of the waters
• General Rule: Owners of the land where the trees originated from own them Adjunction Mixture Specification
o Requisite: Owners claim them within 6 months + bring back within 4 years - 2 movable things - Combination or union - Giving of a new form to
§ TLC: Since they are personal property (uprooted) the period is 4 belonging to different of materials where the another’s material
years); you lose personal property in good faith within a period of 4 owners are united in respective identities of through application of
years such a away that they the component labor
o Effect: Pay expenses incurred in gathering them or putting them in safe place form a single object elements are lost - Involves only one thing
• Qualification: If the owners do not claim them within 6 months – - Involves at least 2 - Involves at least 2 but form is changed
o Belong to the owners of the land upon which the trees are cast things things - Accessory follows the
- Accessory follows the - Co-ownership principal
Requisites of Abandoned River Bed principal - Things mixed may - New object retains or
• Change in the course of river must be sudden so the old river bed may be identified - Things joined retain either retain or lose preserves the nature of
• Change in the course must be more or less permanent their nature their respective nature the original object
• Change of the river bed must be a natural one
• Definite abandonment by the government TLC: In a gin and tonic, the TLC: Original thing is flour;
• River must continue to exist gin is more expensive than you put egg and water and
• Effect: Abandoned river beds belong to the owners whose lands are occupied by the the 7-UP. So you give the work of the baker you have
new course; in proportion to the area lost owner of the gin more a cake; the principal here is
• Qualification: Owners of land adjacent to the river bed may acquire ownership shares than the owner of the worker; if worker in good
o Pay value thereof to the new owners the 7-Up faith he owns the thing but
o Value not to exceed value of the area occupied by the new river bed must indemnify the material
owners; if he is in bad faith
Branching of River Beds he indemnify the owner of
materials and loses the
• Current of a river divides itself into branches
cake and pay damages
o Leaving a piece of land or part thereof isolated
o A portion of land is separated from the estate by the current
Rules in Determining Principal and Accessory
• Effect: The owner of the land retains his ownership
• First Test:
Islands Belonging to the State o Principal: That which the other has been united as ornament or for its use or
perfection
• Those formed on the seas within the jurisdiction of the Philippines
§ TLC: Siya yung kinakabitan, hindi siya yung kinakabit; the ring is the
• On lakes
principal
• On navigable or floatable rivers o Accessory: That which is united as an ornament or for the use or perfection of
a thing
Formation of Islands
• Second Test: Thing of greater value is the principal
• On private land: Owner retains ownership of the land
• Third Test: One of greater volume
o Applicable to all kinds of rivers
• Qualifications: Painting , sculpture, writings, printed matter, engraving and lithographs—
• On non-navigable/floatable reivers: Formed through successive accumulation of
o Board, metal, stone, canvas, paper or parchment = accessory
alluvial deposit
o Ownership Rules:
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Right to Separation § Exception: If value of work, for artistic or scientific reasons is
• General Rule: Owners of things united may demand for their separation considerably more—
o Qualification: As long as they can be separated without injury § Owner of the material can’t appropriate work
• Exception: Accessory Owner may demand its separation even though the thing which o Indemnify him for the value of the material + damages he may have suffered
has been incorporated may suffer some injury
o Requisite: Accessory is more precious than the principal thing Co-Ownership

Adjunction in Bad Faith Requisites of Co-ownership

• AO in Bad Faith • Plurality of owners
o Loses his thing + Damages • Object of ownership is a thing or right which is undivided
• PO in Bad Faith o Unity of or material indivision
o Options of AO: o A single object which is not materially divided, and which is the element which
§ Payment for value of accessory + damages binds the subjects
§ Demand separation + damages • Each co-owner’s right is limited to his ideal share of the physical whole
• Even if it will cause injury
• Exception: Separation no practicable as in the case of Rights Of Each Co-Owner [TLC]
painting or writing • Full ownership of his part, i.e. his undivided interest or share in the common property
• Full ownership of the fruits and benefits pertaining thereto
Commixtion/Confusion in Good Faith • May alienate, assign, or mortgage his ideal interest or share
• Mixture of things solid or liquid pertaining to different owners • May even substitute another person in the enjoyment of his part, except when personal
• Commixtion = Solid rights are involved
• Confusion = Liquid • Right of Redemption in case the shares of all the other co-owners or any of them are sold
• Effect: Co-Owned in proportion to the part belonging to him to a third person
• When Applicable: • Renounce so much of his interest as may be equivalent to his share of the expenses and
o Chance or fortuitous event taxes to exempt himself from said obligation
o Will of both owners • Demand partition
o Will of only one owner acting in good faith
Right to Use by Co-Owners
Commixtion/Confusion in Bad Faith • May use the thing owned in common
• Mixture of things solid or liquid pertaining to different owners • Qualifications:
• When Applicable: One owner in Bad Faith o Does so in accordance with the purpose for which it was intended
• Effect: Owner in Bad Faith Loses the thing belonging to him + Indemnity for damages o In a way as not to—
suffered by the other § Injure the interest of the co-ownership
§ Prevent others from using it according to their rights
Rules on Ownership in Specification • Change of Purpose: Purpose of the co-ownership may be changed by agreement
• Worker In Good Faith: Worker shall appropriate thing as his own + indemnify Material o Express or implied
Owner (MO) for its value
o Qualification: If material is more precious than transformed thing; MO has 2 Right to File an Ejectment Suit
options— • Any co-owner may file an ejectment suit
§ Appropriate new thing to himself + paying indemnity for value of the o Deemed instituted for the benefit of all
work o Does not have join all the co-owners as parties (Not indispensable or
§ Demand indemnity for the material necessary parties)
• Worker In Bad Faith: MO has the following options— • Against Whom: Stranger or Co-Owner
o Appropriate new thing for himself + without paying anything to the maker
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o May be filed against a co-owner who takes exclusive possession and asserts Acts of Administration
exclusive ownership of the property • Those for preservation, improvement or embellishment of the thing owned in common
§ Note: But this will result only in a recognition of co-ownership as a • When is it an Act of Administration [TLC]:
co-owner has a right of possession o Do not involve an alteration
• Effect of Judgment: o Do not affect form and substance
o Favorable Judgment = Benefit the others o Improve or embellish the thing
o Adverse judgment = Cannot prejudice the rights of unimpleaded co-owners o May be renewed from time to time
• Other Actions Included: Forcible Entry, Unlawful detainer, Accion publiciana, Accion o Have transitory effects
reivindicatoria, Quieting of title, Replevin o Do not give rise to a real right over the thing owned in common
o Do not affect the substance or nature of the thing
Right to Contribution • Requisite for Validity: Majority of co-owners (majority interest)
• Right of Co-Owner: To compel the other co-owners to contribute to expenses of o TLC: Financial majority is required
preservation of the property o Qualification: Any interested person may apply to the court for relief if—
• Includes: Expenses for preservation, maintenance or necessary repairs and taxes § No majority
• Compel Contribution Of Other-Owners § Resolution of majority seriously prejudicial
o Qualification: Even if incurred without prior notice or knowledge o Court Option: May order such measures as It may deem proper (even
• Exempting Oneself From The Obligation: Co-owner may renounce so much of his appointment of an administrator)
undivided interest when he does not want to contribute • Qualification: Always give notice first to minority so that they can be heard
o Not allowed if waiver is prejudicial to co-ownership o Exception: Urgency of the case + difficulty of meeting with others
• If in favor of other co-owners = novation • Remedy of Minority Interests: Appeal to the court against the decision of the majority
• If in favor of creditor = Creditor must give his consent o No real majority
o Resolution is seriously prejudicial to the rights of an individual co-owner
Repairs For Preservation o Majority refuses to correct abuse of administration or maladministration
• May be made at will by one co-owner o Minority is made the victim of fraud
o Qualification: Consent of others not required o Alteration is agreed upon (instead of a mere act of administration)
• Duty of Co-Owner: First notify his co-owners of the necessity of repairs o Acts seriously prejudicial:
o If practicable
Right of Redemption of Co-Owners
Acts of Alteration • Who: Any Co-Owners
• Affects the substance of the thing and changes its essence and nature o If 2 or more Co-Owners want to redeem— Redeem in proportion to the share
• When is there Alteration [TLC]: they may respectively have in the co-owned thing
o More or less permanent • When Right Available: Shares of all Co-owners or any one of them are sold to a 3rd
o Changes the use of the thing person
o Prejudices the condition or its enjoyment by others • Amount: Sale Price
• Requisite for Validity: Unanimous consent o Qualification: If price of alienation grossly excessive— pay only a reasonable
o Express or implied price
o Qualification: Express consent required to recover expenses
• Effect of an Unauthorized Alterations: Act is illegal and invalid Termination Of Co-Ownership [TLC]
o Qualification: Even if it benefits all • Consolidation or merger in only one of the co-owners of all the interests of the other co-
o Remedy of Co-Owners: Compel erring co-owner to undo what has been owners
done + damages • Destruction or loss of the property co-owned
• Qualification: Unreasonable withholding of consent by one +withholding clearly • Acquisitive prescription in favor of a 3rd person or co-owner who has repudiated the co-
prejudicial to common interest ownership
o Apply to court for relief • Partition, extra-judicial or judicial
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• Termination of the period Legal Partition
o Period agreed upon by the parties • When Applicable: Thing is essentially indivisible and the co-owners cannot agree that it
o Imposed by donor or testator be allotted to one of them who shall indemnify the others
o That allowed by law, i.e., 10 years for contractual or 20 years for testacy • Procedure [TLC]: Successive
• Sale of the co-owners of the thing to a 3rd person and the distribution of its proceeds o Give the whole to one co-owner who will be required to indemnify the rest
among them o Public or private sale and its proceeds divided among the co-owners
§ Requisites:
Action for Partition • Right to partition is invoked by any of the co-owners
• Separation, division or assignment o fa thing held in common among those to whom it • Because of the nature of the property, it cannot be
may belong subdivided or its subdivision would prejudice the interests
o Includes every act which is intended to put an end to indivision among co-heirs of the co-owners
and legatees or devisees • Co-owners are not in agreement as to who among them
• Who: A Co-Owner can demand partition (General Rule) shall be allotted or assigned the entire property upon
o Insofar as his share is concerned proper reimbursement of the co-owners
o TLC: Even without any reason at all
• When: Anytime Possession
• Prescriptive Period: Imprescriptible
o Requisite: Absent repudiation of the co-ownership by a co-owner Classes of Possession [TLC]
o Qualification: Imprescriptibility does not apply when the one co-owner has • In one’s own name or in the name of another
already repudiated the co-ownership; the question becomes one of ownership • In the concept of the owner, in the concept of a holder, in the concept of both the owner
§ Period to File:10 years from repudiation implied or constructive trust and the holder
• When Partition Unavailable o TLC: Lessor
o Agreement to keep thing undivided • Good faith or bad faith
§ Qualification: Max of 10 years o TLC: Good faith= don’t know any defect in the title of your grantor or in your
• Renewable (Still subject to Max 10 year period) title to the property
§ If stipulation is more than 10 years = Only excess invalid
o Testator/Donor prohibits partition for a period not exceeding 20 years Doctrine of Constructive Possession
o Law prohibits partition • Possession in the eyes of the law does not mean that. A man has to have his feet on
§ Examples: ACP/CPG, Extra-judicial separation of properties, every square meter of ground before it can be said that he is in possession
o Legal Nature of the common property does not allow partition o The possession and cultivation of a portion of a tract under claim of ownership
o Physical Partition would render the thing unserviceable for the use for which it of all is a constructive possession of all, if the remainder is not in the adverse
is intended possession of another
• Requisites:
Requisites for Acquisitive Prescription on the Part of a Co-Owner o Alleged possessor must be in actual possession of a portion or part of the
• Must make known to the other co-owners that he is definitely repudiating the co- property
ownership and claiming complete ownership over the entire property o Claiming ownership of the whole area
• Evidence of repudiation and knowledge on the part of the others must be clear and o Remainder of the area must not be in the adverse possession of another
convincing person
• Open, continuous, public, peaceful, adverse possession for the period of time required o Area claimed must be reasonable
under the law
• Period of prescription starts from such repudiation When Possessor Losses Possession
• Abandonment of the thing
• Assignment made to another either by onerous or gratuitous title
• Destruction or total loss of the thing, or because it goes out of commerce
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• Possession of another, subject to the provisions of Art. 537, if the new possession has • Requisites:
lasted longer than one year o Has a title or mode of acquisition
§ Colorable belief and beyond a mere stubborn belief in one’s title
Who May Acquire Possession despite judicial adjudication
• Same person who enjoys it o There is a flaw or defect in said title
• His legal representative/agent o Possessor is unaware of the flaw or defect, or believes that the thing belongs to
• By any person without any power him
o Requisite: Person in whose name the act of possession was executed has • Qualification: Mistake upon a doubtful or difficult question of law may be the basis of
ratified the same good faith
§ Until ratification there is no possession acquired
o Qualification: Without prejudice to the consequences of negotorium gestio Bad Faith Possession (Requisite)
• His heirs • Possessor has a title or mode of acquisition
• There is a flaw or defect in title
Possession De Facto • Possessor is aware of the flaw or defect in the title
• General Rule: Cannot be recognized at the same time in 2 different personalities
• Exceptions: Transmission Of Possession In Succession
o Co-Possessors • Possession of property is transmitted to heirs via succession
o Possession in different concepts or degrees • When Transmitted: From the moment of death (if accepted)
o Qualification: Deemed transmitted to the heir without interruption
Kinds of Possession (Art. 523-525) • Effect of Renunciation of Inheritance: Never to have possessed the same
• In one’s own name
o Anchored on a juridical title or right Instances when Possession not Acquired (Art. 536-537)
o Fact + right of possession • Through force or violence
o Qualification: Does not have to exercise personally the rights of possession o As long as there is a possessor who objects thereto
• Possession in another’s name • Through acts merely tolerated
o Possession by a person without any right of his own • Clandestine and unknown acts
o Strictly an agent or merely an instrument in the exercise of such possession o Executed clandestinely + without the knowledge of the possessor
o Fact of possession only + acts in representation
• In the concept of an owner Wrongful Possession by Decedent
o May be the owner himself or one who claims to be so • General Rule: Does not suffer consequences of the wrongful possession of the
o Effects: deceased
§ Disputable presumption of ownership • Exception: Heir was aware of the flaws affecting it
§ Disputable presumption that the possessor has just title + can’t be • Qualification: Effects of possession in good faith benefits him only from date of death
obliged to show
§ May ripen into ownership through acquisitive prescription
• In the concept of a holder Rules in Conflicting Possession de Facto (Successive Tests) [TLC]
o Acknowledges in another a superior right which he believes to be ownership • Present possessor preferred
§ Whether his belief be right or wrong o The person first having actual possession
o Considered as such with respect to the thing itself • If both are possessors present— the one longer in possession
§ Considered as a possessor in the concept of an owner with respect • Both began to possess at the same time (Dates are the same)—
to their right o One who presents title
• If both present a title—
Possessor In Good Faith/Bad Faith o Court shall determine
• Presumption: Deemed a possessor in good faith
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o Placed in a judicial deposit pending determination of its possession or 13. Non-interruption of possession (possession during useful improvements
ownership through proper proceedings intermediate period) and no limited right of
14. Right to be respected and protected/restored in his/her removal
Tacking of Possession possession by the means established by the laws and 5. Right to remove
• The present possessor of the property can add the possession previously had by his the Rules of Court. [Art. 539, CC]. These include ornamental
predecessor-in-interest summary actions (forcible entry and unlawful detainer), improvements or be
• Upon the death of a decedent there is transmission of successional rights accion publiciana, and action for replevin. Accion paid the value of
o Even if you did not accept the property immediately upon the death of the reivindicatoria is not included. "Every possessor" - such at the time of
decedent there is already transmission of successional rights includes all kinds of possession, from that of an owner recovery but at the
• If the decedent was the possessor of a parcel of land; his possession was in bad faith to that of a mere holder, except that which constitutes a owner's option
o The bad faith possession of one person is not transmitted to another because crime.
the presumption is always that the possession of a person is in good faith 15. Lawful possessor can employ self-help
o The bad faith of the decedent terminated at his death 16. Possession of an immovable extends to the movables
o The possession of the heir is in good faith within or inside
• How do we apply tacking?
o We can add the possession of the predecessor-in-interest to the tacking of your Loss Or Termination Of Possession
possession • Abandonment of the thing
o We convert the bad faith of the father to good faith • Assignment made to another either by onerous or gratuitous title
§ get the common denominator (1:3 or 10:30) • Destruction or total loss of the thing, or because it goes out of commerce
• if the decedent was in possession in bad faith for 9 years, your good faith possession • By the possession of another, subject to the provisions of article 537, if the new
needs only 7 years more to acquire it possession has lasted longer than one year
• if you repudiated the inheritance, you will be considered as to not have possessed the o Qualification: Real right of possession is not lost till after the lapse of 10 years
property at all
Loss of Immovables
Possessor in Good Faith Possessor in Bad Faith • Abandoned Movables
1. Fruits 1. Right to be respected o Spes recuperandi + animus revertendi gone/given up
2. Refund of necessary expenses in possession • Misplaced/Mislaid Movables
3. Refund of useful 2. Right to necessary o No loss of spes recuperandi not lost + animus revertendi not given up
4. Right of retention when there are unpaid necessary or expenses and the § Still alive
useful expenses expenses for o Possession and ownership is not lost
5. Removal of useful/ornamental improvements without production, gathering, § As long as the movable is still remaining under control of the
damage to the principal thing and preservation of possessor
6. No liability for deterioration or loss, except in cases of fruits • Deemed remaining under his control so long as they are
fraudulent intent or negligence 3. Does not have right not under the control of another possessor
7. May acquire full ownership by prescription to reimbursement of o Mislaid Property: If property is already in the control of another person =
8. Presumption of just title expenses for luxury possession is lost
9. Can ask for the inscription of possession in the Registry but may remove them • Lost Movable
of Property [Art 708, CC] as long as the o Person who finds object acquires physical custody only
10. Generally, he/she can do on the things possessed principal thing suffers § Does not become vested with legal possession
everything that the law authorizes an owner to do until no injury or may sell o Duty of Finder:
he/she is ousted by one who has a better right them to the owner § Return to owner or deposit with the Mayo where object was found
11. Can exercise the right of pre-emption and is entitled to who opts to buy the § If owner appears—
indemnity in case of appropriation removable ornaments • Pay finder 1/10th of the price of the thing or sum
12. Has presumption of continuity of good faith 4. No right to § If owner does not appear after 6 months—
reimbursement for
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• Thing found, or its value, shall be awarded to the finder Easements
• Finder to reimburse expenses incurred in the publication
o Failure to Comply with Duty: Liable for Theft Characteristics of an Easement (TLC)
o Sale to 3rd Person: • Real right
§ General Rule: Owner may recover possession • Imposed on a real property only
• Without paying indemnity • Imposable only on another’s property
• Even if 3rd person in good faith • Involves two neighboring estates, the dominant and the servient estates
§ Exception: Good faith + Public sale (One with public notice where • A limitation or encumbrance on the servient estate for another’s benefit
anyone has right to bid and offer to buy) • A right limited by the needs of the dominant estate
• Owner may recover + pay price • Inherent from the servient estate as such
• Inseparable from the servient estate
Loss of Immovables • Non-possessory
• General Rule: Not deemed lost, or transferred for purposes of prescription • Indivisible
• Exception: Mortgage Law, Land Registration Laws • Intransmissible
• Perpetual
Possession of Movable Acquired in Possession of Movable in Acquired in
Good Faith Bad Faith Kinds of Easement: As to its Beneficiaries
Equivalent to title Not equivalent to title • Real Easement/Servitude (Paredial): Imposed upon an immovable for the benefit of
When Owner May Recover: Unlawful Deprivation— Includes all cases of another immovable
- Lost the same taking which constitute a criminal offense o Dominant Estate: Immovable in favor of which the easement is established
- Has been unlawfully deprived o Servient Estate: That which is subjected to the easement/servitude
• Personal Easement/Servitude: Encumbrance imposed upon an immovable for the
Exception: Possessor acquired the “benefit of a community, or of one or more persons to whom the encumbered estate does
movable in good faith at a public sale not belong”
- Effect: Owner must reimburse price
paid by possessor Kinds of Easement: As to its Exercise
• Continuous: Incessant + without the intervention of man
Possession of Animals o Enjoyment is continual, without the necessity of any actual interference by man
• Wild Animals: Those found in their natural freedom • Discontinuous: Used at intervals + depends on the act of man
o Possessed while they are under one’s control o Enjoyment of which can only be had by the interference of man
o Loss Of Possession: Once they recover their natural freedom, or restored to • Apparent: Made known and are continually kept in view by external signs that reveal the
their original state no more possession use and enjoyment of the same
• Domesticated or Tamed: Formerly wild but which have been subdued and retained the • Non-Apparent: Show no external indication of their existence
habit of returning to the premises o Example: Easement of not building beyond a certain height
o Possessed as long as they retain the habit of returning to the premises of the
• Positive: Imposes upon the owner of the servient estate the obligation of allowing
possessor something to be done on his property
o Loss of Possession: Lapse of 20 day period to claim from the occupation by
o Example: Easement of right of way
another person
• Negative: Prohibits the owner of the servient estate from doing something which he
• Domestic or Tame: Born or reared under the care and control of man could not lawfully do if the easement did not exist
o Considered as personal property o Example: Easement not to build higher
o Loss of Possession: Subject to general rules of NCC
Prescription
• Only those easements which are both continuous and apparent
• Requisite Period: 10 years
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• Counting of Period: another’s
o Positive Easement: From the day on which the owner of the dominant estate, Property
or the person who may have made use of the easement, commenced to Discontinuous and
exercise it upon the servient estate Apparent
o Negative Easement: From the day on which the owner of the dominant estate
forbade the owner of the servient estate from executing an act Continuous and Non-
By Title Only
§ How Done: Instrument acknowledged before a notary public Apparent
§ Opening of a Window in One’s Own Window: Period is counted
from the day the one who opened the window prohibits the adjacent Discontinuous and
land owner from doing anything which may tend to cut off or interrupt Non-Apparent
the light or block the view of the former
§ Opening of Window in a Party Wall: Count period from the time of Equivalents of Title
the opening of the window • Deed of Recognition
§ Opening of Window in Another’s Wall: Count period from the time • Final Judgment
of the opening of the window • By Apparent Sign or Legal Presumption
o Easement is created by way of tile through operation of law upon the division of
MODES OF ACQUIRING EASEMENTS (Arts. 620-623) ownership of the 2 estates
Continuous and 1. By Title o Requisites:
Apparent a. Does not necessarily mean document § There exist an apparent sign of servitude between 2 estates
b. It means a juridical act or law sufficient to create § At the time of the establishment, the ownership of the 2 estates
Examples: the encumbrance resides in one person
1. Easement of c. Example: law, Donation, Will, Contract § Sign of the easement be established by the owner of both estates
aqueduct • Note: Does not apply if easement is established by a
2. Easement of light 2. By Prescription – 10 Years person different form the owner
and view a. Positive: Computed from the day the dominant § Ownership over the 2 estates is later on divided
3. Positive; When owner commenced to exercise the easement • By alienation, partition or succession
Made: upon servient estate § At the time of division of ownership, nothing is stated in the document
a. On one’s b. Negative: Computed from the day notarial (alienating or partitioning the property) contrary to the easement nor
own party prohibition was made on the servient estate is the sign of the easement removed
wall i. How Done: Instrument acknowledged § Qualification: Regardless of good faith or bad faith
extending before a notary public
over ii. Opening of a Window in One’s Own Rights of Servient Estate Owner
another’s Window: Period is counted from the • Retains ownership of the property
property day the one who opened the window o Incorporeal interest on the property is what is granted to the Dominant Estate
b. On a prohibits the adjacent land owner Owner— No grant of title thereto
party wall from doing anything which may tend • Right to use the property in any way
4. Negative; When to cut off or interrupt the light or block o So long as not in a manner that will affect the exercise of the easement
Made: the view of the former
• Right to Change Place or Manner of Use
a. On one’s iii. Opening of Window in a Party Wall:
o Requisites:
own wall Count period from the time of the
§ Place originally assigned or the manner established has become very
which opening of the window
inconvenient to the owner of the servient estate or it has prevented
does not iv. Opening of Window in Another’s
him from making any important works, repairs or improvements
extend Wall: Count period from the time of
§ Servient owner offers another place or another manner of use equally
over the opening of the window
convenient
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§ No injury is caused thereby to the owner of the dominant estate or to § Continuous: Counted from the day on which an act contrary to the
those who may have a right to the use of the easement easement took place
§ The expenses that will be incurred in the process shall be borne by o If property dominant estate co-owned—
the owner of the servient estate § Use of one co-owner will prevent the running of the prescriptive
period
Rights of Dominant Estate Owner • Impossibility of use
• Exercise all rights necessary for it use o General Rule: Merely suspended until subsequent conditions shall permit
• Right to make any works on the servient estate if the same be necessary for the use and o Exception:
preservation of the servitude § Impossibility of use is irreparable
o Requisites: § Circumstances which caused the impossibility are reparable, but
§ Work necessary forth use and preservation of the servitude period of extinctive prescription by non-user has already lapsed
§ Work is done at the expense of the owner of the dominant estate • Qualification: Impossibility caused by a fortuitous event
§ Work can be done without altering the servitude or rendering it more will merely suspend, and prescription period does not start
burdensome to run
§ Owner of the servient estate is first notified • Expiration of term
§ Time and manner of making the work should be the most convenient o Applicable only to Voluntary Easements
to the owner of the servient estate, or it is done in such a manner that • Fulfillment of condition
it causes the least inconvenience to the owner of the servient estate o Applicable only to Voluntary Easements
o If several owners— Expenses borne shall be in proportion to the benefits which • Renunciations
each may derive thereform o Requisite: Clear and express
§ If any one does not wish to contribute— Exempt himself by • Redemption
renouncing the easement for the benefit of the others o Releasee of the servient estate from the servitude upon agreement of both
• May demand removal of fences which hinder the free passage over the servient estate owners
• Right to use the easement for the benefit of the immovable originally contemplated o Requisite: Payment by the owner of the servient estate of the corresponding
o Cannot use the easement except for the benefit of the immovable originally consideration
contemplated • Annulment or rescission of title constituting the easement
• Right to use in the manner established • Termination of the right of the grantor
o General Way: May be used for all the needs of the dominant estate o Example: Pacto de retro transactions
§ May be adopted to any new modification in the tenement itself • Abandonment of the servient estate
o Particular Way: Cannot be used for a different purpose • Eminent domain
§ Exception: Change of use does not make the easement more • Registration of the servient estate as free and without any encumbrance in the Torrens
burdensome System in favor of an innocent purchaser for value
• Cessation of necessity
Modes of Extinguishing Easements o Example: Legal Easement of Right of Way
• Merger
• Buying off of the easement
o If for the benefit of a community + acquisition of ownership by one—
§ Only extinguishes the personal easement Drainage of Waters
o If merger is only as to a part of the servient estate—
• Obligation of Owner of Lower Estate: Obliged to receive the waters which naturally
§ Will only be extinguished if what was acquired was the part with the
and without intervention of man flow from higher estate
servitude
o General Rule: May not construct works which will block or impede the flow of
o KTL: Must be complete, absolute and permanent
waters
• Non-use o Exception: Provides for an alternative method
o Period of Non-Use: 10 years
• Obligation of Owner of Higher Estate: May not construct works which will increase the
o Counting of Period:
burden or increase the natural flow
§ Discontinuous: Day on which the easement was not used
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o May resort to artificial means o Common Requisite: Public highway must substantially meet the needs of the
§ Select the routes and methods of drainage that will cause the dominant estate in order that the easement may be extinguished
minimum damage § Such new access is adequate and convenient to the dominant estate
§ Pay just compensation to the owner of the lower estate (Only requisite for TLC)
• Remedy of Dominant Estate Owner: Demand release of estate
Easement For Public Use on Water-Adjoined Properties o Return what he may have received by indemnity without interest
• For recreation, navigation, floatage, fishing and salvage § Interest = payment of ruse
o Not allowed to stay longer than what is necessary o Does not happen ipso jure; must ask for release
• Where Applied: Banks or rivers and streams and the shores of the seas and lakes
throughout their entire length and within a zone of Duty to Permit Acts of Dominant Estate Owner
o Urban Areas: 3 meters • Grounds:
o Agricultural: 20 meters o Indispensable for the construction, repair, improvement, alteration, or
o Forest: 40 meters beautification of abuilding
o Carry materials through the estate of another
Legal Easement of Right of Way; Requisites (TLC) o Raise scaffolding or other objects necessary for work
• Property (Dominant) is surrounded by other estates • Owner of estate shall permit the above-mentioned act
• No adequate outlet to a public highway • Requisite: After receiving payment of the proper indemnity for the damage caused him
• Absolutely necessary for use or cultivation of the enclosed estate of the claimant
• Isolation not due to claimant’s own act Rights and Obligations of Party Wall Owner
• Established at the point least prejudicial to servient estate • Use it in proportion to the right he may have in the co-ownership
• Claimant must be the owner or one with a real right thereto o Without the consent of the other cow-owners
• Payment of the proper indemnity o Should not interfere with the common and respective uses
o Amount of Indemnity: • Right to increase the height
§ Permanent Way: Value of land + Damage caused to servient estate o Done at his expense
§ Temporary Way: Damage caused to servient estate only o Pay for any damage which the work may cause
§ Even if temporary damage only
Permanent Temporary o If party wall cannot bear the increase in height—
Indemnity: Damages + Value of land Indemnity: Damages only § Is obliged to reconstruct it at his own expense
o If necessary to be made thicker—
Necessary Repairs: Dominant Owner Necessary Repairs: Servient Owner § Shall use his land
o Owns the increased height solely
Taxes: Dominant Owner to reimburse a Taxes: Servient Owner § Exception: Other co-owners contribute to the cost + land used to
proportionate share
increase its thickness
• Repairs and Maintenance
Width of Easement
o Borne by all the owners of the lands
• Width of Easement may be changed from time to time according to the needs of the o Remedy of Exemption: Co-owner may excuse himself from paying expenses
dominant estate § Requisite: Renounce his part ownership
• Who May Avail: Owner of Dominant estate or person with a real right to use the property § Exception: May not be resorted to when the party wall supports a
o Note: Usufructuaries may demand a right of way; lessee may not demand building belonging to him
Extinguishment of the Legal Easement of Right of Way Easement of Light
• Grounds for Extinguishment: • Right to make an opening not grated than 30 sq. cm + receive light from another’s
o No longer necessary because the owner has joined to another abutting on a tenement
public highway which meet the needs • Where Made:
o New road is opened giving access to the isolated estate o Ceiling
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o Wall o If one gives his consent, it shall bind him and his successors already
§ Additional Requisite: There must be an iron grating § He may not withdraw his consent
§ Qualification: IF you can look out = Easement of Light and View • Abandonment of Property
• Owner of tenement/property adjoining the wall can close them if he acquires part- o Owner of the servient estate bound himself to bear the cost of the work
ownership required for the use and preservation of the easement
o May free himself from his obligation by renouncing his property to the owner for
Light and View the dominant estate
• Easement consists in prohibiting or restraining the adjacent owner from doing anything o Owner of Servient estate need not renounce his ownership over the entire
which may tend to cut-off or interrupt the light property if the servitude affects only a part thereof
• Necessarily includes an easement not to build higher
• Of a negative character Nuisance
• Can be acquired by prescription
o Period to Acquire (Art. 668): Nuisance: Any act, omission, establishment, business, condition of property or anything else
§ Made Through a Party Wall: From time of opening of window in a which—
party wall • Injures or endangers the health or safety of others
• Must be made with the consent of the other co-owners • Annoys or offends the senses
§ Through a Wall on the Dominant Estate: From time of formal • Shocks, defies or disregards decency or morality
prohibition if window is through a wall on the dominant estate • Obstructs or interferes with the free passage of any public highway or street, or any body
• Prohibition on the proprietor of the adjoining land/tenement of water
• Hinders or impairs the use of property
Lateral and Subjacent Support • Qualification: Lapse of time does not legalize any nuisance (Public or Private)
• Excavations upon one’s land that will deprive any adjacent land or building of sufficient
lateral or subjacent support is prohibited Doctrine of Attractive Nuisance
• Right to have land supported by the adjoining land or the soil beneath • One who maintains on his premises dangerous instrumentalities or appliances of a
o Each of the 2 adjoining landowners is entitled to the support of the other’s land character likely to attract children in play, and who fails to exercise ordinary care to
• Stipulation or testamentary provision allowing excavations that cause danger = void prevent children from playing therewith or resorting thereto, is liable to a child of tender
• Lateral: Supported and supporting lands are divided by a vertical plane years who is injured thereby, even if the child is technically a trespasser in the premises
• Subjacent: Land is above, and the supporting land is beneath it • Qualification (TLC): This doctrine does not apply to bodies of water, artificial or natural,
• It is characterized as a negative easement in the absence of some unusual condition or artificial feature other than the mere water
and its location
Voluntary Easements
• When it may be Availed: When claimant is not entitled to demand for an easement as a Nuisance Per Se Nuisance Per Accidens
matter of right when the requisites for a legal easement are not present 1. Nuisance at all times and under any 1. Becomes a nuisance by reason of
• Only the owner of the property may constitute circumstances, regardless of location circumstances, location or
• On Property Held in Usufruct: or surroundings surroundings
o May be constituted on a land held in usufruct 2. Proof of its existence is sufficient 2. Proof of the manner of its conduct, or
§ Without the consent of the usufructuary 3. May be summarily abated under the the act, its consequences and other
o If the usufruct is imposed by the usufructuary the same is not really an undefined law of necessity like circumstances is necessary
easement or servitude 3. Reasonable notice and hearing on
§ It will not bind the owner or the property itself Example: Rabid Dogs whether or not, in law, it constitutes a
§ Not a real right but a mere personal right nuisance
• Over Co-Owned Property: TLC: Affects the immediate safety of
o Unanimous consent of all is required person and property Example: Factories
§ Simultaneously or successively
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Remedies to Abate a Nuisance (TLC) o There is a person who has ownership and who transmits the same to the
• Public Nuisance successor
o Prosecution under the Revised Penal Code or any local ordinance
o Civil Action Modes of Losing Ownership
§ General Rule: Must be commenced by the city or municipal mayor • Voluntary Modes: Those which depend upon the will of the owner
§ Exception: Private person may file the action if the nuisance is o Abandonment
specially injurious to himself o Alienation
o Extrajudicial abatement • Involuntary Mode: Independent of the will of the owner
§ District health officer determines whether or not it is the best remedy o Destruction of the thing
§ Private person himself, provided: (Art. 703/705 NCC) o Revocatory acts
• Nuisance especially injurious to himself o Extinguishment by legal precept and in virtue of certain acts, by the owner or
§ Demand is first made upon the owner or possessor of the property to third persons
abate the nuisance; o Extinguishment by judicial decree
§ Such demand has been rejected § Confirmation of a judicial sale as a result of levy on execution
§ Abatement be approved by the district health officer and executed o Extinguishment by act of the State
with the assistance of the local police § Confiscation of the effects and instruments of a crime
§ Removing or if necessary, by destroying the thing which constitutes
the nuisance, without committing a breach of the peace or doing Tradition or Delivery
unnecessary injury • Mode: Legal means by which dominion or ownership is created, transferred or
§ Value of the destruction does not exceed P3000 destroyed, but title is only the legal basis by which to affect dominion or ownership
• Qualifications: o Actual process of acquisition or transfer of ownership over a thing in question
o Remedies are cumulative not exclusive o Directly and immediately produces a real right
o All remedies may be availed of by public officers but a private person may avail o Cause
of the last 2 remedies only o Creates a real right
• Private Nuisance o 3 Modes of Acquisition of Ownership:
o Civil Action § Occupation
o Extra Judicial Abatement § Donation
§ Prescription and Laches
Modes of Acquiring Ownership • Title: Referring to every juridical act, right or condition which gives a means to the
acquisition of ownership and other real rights but which in itself insufficient to produce
Modes of Acquiring Ownership them
• Occupation o Juridical justification
• Intellectual Creation o Serves as a means and a pretext to that acquisition
• Law o Means
• Donation o Personal right
• Succession
• Tradition Tradition, Concept and Requisites
• Prescription • Transfer of possession accompanied by an intention to transfer ownership or other real
rights
Original and Derivate Modes • Requisites:
• Original Mode: independent creation of a new right of ownership, independent of the o Pre-existence of the right to be transmitted in the estate of the grantor
ownership of a definite person o Just cause or title for the transmission
• Derivative Mode: Acquisition of ownership which depend on the existence of the right of o Intention on the part of the grantor to grant and on the part of the grantee to
a certain other person acquire
o Capacity to transmit and capacity to acquire
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o Act which gives it outward form, physically, symbolically or legally
Kinds of Tradition
• Real Tradition: Physical or actual delivery
o Thing is placed in the control and possession of the grantee
o Movable: Deliver or transfer from hand to hand
o Immovable: Possessory act
• Constructive Tradition: Represented by other signs or acts indicative thereof
o Traditio simbolica: Delivery of symbols or things which represent those to be
delivered
o Traditio longa manu: Effected by the grantor by simply point out to the
grantee the things which are being transferred and which at the time must be
within their sight
o Traditio brevi manu: Grantee has already acquired actual control or
possession of the thing, when the thing Is leased to him
§ Mere declaration on the part of the grantor that the grantee shall now
hold the thing which is already in his control and possession, as
owner, operates as a form of delivery
o Traditio constitutum possessorium: Person who transfers ownership retains
possession of the property
§ Delivery is effected by a mere declaration on the part of the transferor
that he will hold the thing for the transferee
o Execution of Public Instrument: Equivalent to the delivery of the thing which
is the object of the contract
§ Qualification: Applies only when there is no legal impediment that
may prevent the passing of the property from the hands of the vendor
into those of the vendee
• If there is a legal impediment = execution of public
instrument only gives rise to a prima facie presumption of
delivery
• Quasi-Tradition: Transfer of rights or incorporeal things through the exercise of the
rights by the grantee with the acquiescence of the grantor
• Tradition by Operation of Law: Effected solely by virtue of a legal precept
Finder of Movable Property
• Duty of Finder: Return to previous possessor
o If unknown— Immediately deposit with Mayor of the place where finding had
taken place
• Duty of Mayor: Publicly announce for 2 consecutive weeks
o In the way he deems best
• Public Auction: Sold at Public auction
o When Done: 8 Days after publication
o Requisite: Movable can’t be kept without deterioration or without expenses
which considerably diminish its value
• Finders-Keepers: Owner has not appeared 6 months from publication
o Effect: Thing or its value awarded to finder
o Duty of Finder/Owner: Reimburse expenses
• Duty of Owner if he Appears: Pay 1/10th of the sum/price of the thing find
o Purpose: As a reward
Occupation
• Seizure or apprehension of things corporeal which have no owner, with the intention of
acquiring them and according to the rules laid down by law
• Requisites:
o Thing must be res nullius
o Appropriable by nature or one that can be seized and apprehended
§ Corporeal
o Brought into the actual possession or control of the one professing to acquire it
o Person must acquire it with the intention of acquiring ownership
Ownership of Animals
• General Rule: All animals which are still in their natural state of freedom become the
property of the captor by virtue of occupation
o Qualification: Right to hunt and to fish is regulated by special laws
o Exception: Buying, using, gathering, killing, processing and/or transporting of
rare, threatened and endangered species are prohibited
• Swarm of Bees
o Owner has a right to pursue them to another’s land
§ Exception: Can’t pursue in an enclosed estate
• Remedy: Obtain permission of the owner of the estate
o Duty: Indemnify the possessor for the damage
o Effect of Failure to Pursue or Ceases to Pursue within 2 Days: Abandoned
ownership
• Wild Animals
o Once they recover their natural freedom or restored to their original state of
being free, they cease to be under one’s possession
o Regain status as res nullius
• Domesticated Animals
o Once they lose habit of returning to the premises, they will immediately revert
back to their original status of being wild
o Ownership over animals not lost by the mere fact of not being in the
possession of the owner
§ Owner has 20 days to recover possession, counted from the
occupation by another
§ Failure to Claim: Abandoned the animals
• Domestic Animals
o Considered as movable property
o Subject so same rules governing the acquisition of ownership over other
movables
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PRESCRIPTION Can be proven under the general issue without its Should be affirmatively pleaded and proved to bar
being affirmatively pleaded the action or claim
Acquisitive Prescription
• The acquisition of ownership and other real rights through possession in the concept of Prescription Laches
owner of a thing in the manner and condition provided by law - Fact of delay - Effect of delay
• Refers to the possessor as the actor, as claimant in the possession - Matter of time - Question of inequity to be enforced; inequity
- Statutory founded on some subsequent change in the
• Vests property
- Applies at law condition or the relation of the parties
• Requisites of prescription as a Mode of acquiring Ownership: - Cannot be availed of unless it is - Not statutory
o Capacity to acquire by prescription especially pleaded as an affirmative - Applies at equity
o A thing capable of acquisition by prescription allegation - Being a defense of equity, need not be
o Possession of the thing under certain conditions - Based on a fixed time specifically pleaded
o Lapse of time provided by law - Not based on a fixed itme
• Ordinary: Requires possession of things in good faith + just title for the time fixed by law
o Just Title: It means that the possessor obtained the possession of the property Laches
through one of the modes recognized by law for acquiring ownership but the • Unreasonable delay in the bringing of a cause of action before the courts of justice; it is
transferor or grantor was not the owner of the property or he has no power to failure or neglect, for an unreasonable and unexplained length of time, to do that which,
transmit the right by exercising due diligence, could or should have been done earlier; it is negligence or
o Good Faith— Movables: 4 Years; Immovables: 10 years omission to assert a right within a reasonable time, warranting a presumption that the
o Bad Faith— Movables: 8 Years; Immovables: 30 Years party entitled thereto either has abandoned it or declined to assert it
• Extraordinary: Acquisition of ownership and other real rights • Requisites of Laches:
o Without need of title or of good faith or any other conditions o Conduct on the part of the defendant which gives rise to a claim;
o Loss of the right and limitation of actions o Delay in asserting complainant’s rights (the complainant having
o Refers to the neglect of the owner, who is out of possession knowledge/opportunity to file suit)
o Lack of knowledge/notice of the part of the defendant that the complainant
Extinctive Prescription would assert a right
• Based on the probability, born of experience, that the alleged right which accrued in the o Injury or prejudice to the defendant in the event relief is accorded to the
past never existed or has already been extinguished; or if it exists, the inconvenience complainant
caused by the lapse of time should be borne by the party negligent in the assertion of his
right Prescriptive
Action
o Requisites: Period
§ Capacity to acquire by prescription 1. Action to foreclose a mortgage
§ A thing capable of acquisition by prescription 2. Actions Upon:
10 years [Art.
§ Possession of the thing under certain conditions a. A written contract
1144, CC]
b. An obligation created by law
§ Lapse otf time provided by law
c. A judgment
Actions upon:
Acquisitive Prescription Extinctive Prescription 6 years [Art.
1. An oral contract
Requires positive action of the possessor Requires inaction of the owner out of possession or 1145, CC]
2. A quasi-contract
(a claimant) who is not the owner neglect of one with a right to bring his action
Applicable to ownership and other real rights. Applicable to all kinds of rights, whether real or 5 years [Art.
All other actions whose periods are not fixed in the CC or in other laws
personal 1149, CC]
Vests the property and raises a new title in the Vests the property and raises a new title in the Actions upon:
occupant occupant 1. An injury to the rights of the plaintiff
Results in the acquisition ownership or other real Merely results in the loss of a real or personal right 4 years [Art.
2. A quasi-delict.
rights in a person as well as the loss of said or bars the cause of action to enforce said right 1145, CC]
ownership or real rights in another Recover movables
[UNTS]
1. Actions for Art. 1147, CC
a. Forcible entry within one year from date of dispossession thru FISTS
or or Unlawful Detainer 1 year from date of last demand
b. Defamation
2. Actions upon an injury to the rights of the plaintiff or upon a quasi-delict resulting
from any act of any public officer involving the exercise of powers arising from
1 year
Martial Law including the arrest, detention and/or trial of the plaintiff.
3. To recover possession de facto
4. To revoke a donation on the ground of ingratitude. [Art. 769, CC]
5. To rescind or recover damages if immovable is old with non-apparent burden or
servitude. [Art. 1560 (3,4), CC]
6. To enforce warranty of solvency of debts in assignment of credits. [Art.
30 years Recover immovables
Start of Period
• General Rule: Counted from the day which they may be brought
• Exception: Otherwise provided
Start of Period for Payment of Principal With Interest/Annuity
• Obligation is to pay principal + interest/annuity
• Start of Period: Last payment of interest/annuity
• Natural: Any natural cause that interrupts the possession for more than one year. [Art.
1121, CC]
• Civil [Art. 1123, CC]
o For acquisitive prescription – starts from the time judicial summons are
received
o For extinctive prescription – starts from the time action is filed in court,
written extrajudicial demand by the creditors is received, or when there is
written acknowledgment of the debt by the debtor. [Art. 1155, CC]
Suspension in case of Acquisitive Prescription
• Judicial Summons is void
• Plaintiff desists form the complaint
• possessor is absolved of the complaint
• Effect: As if the interruption never happened
Effects of Interruption
• All the benefits acquired so far from the possession ceases
• When the prescription runs again, it will be reset

Start of Period for Obligations Declared by a Judgement

• Finality of judgment

Start of Period of Accounting

• Action to Demand Accounting: Day person who is mandated to render ceases in their
functions
• Action Arising from the Accounting: Date when result was recognized by agreement
of the parties

Tolling of Period
• Ground: Fortuitous event
o Prevented obligee from enforcing his right
• Effect: Not reckoned against him

Interruption of Period
• Filing in court
• Written extrajudicial demand by the creditor
• Written acknowledgement of the debt by the debtor
• CAU: The period is not merely suspended, but restarts or resets!

Types of Interruption
[UNTS]
OBLIGATIONS o 3 Incidental Obligations:
§ Preserve the thing with due care
Three Prestations § Deliver fruits
• To Give § Deliver accessories and accessions
o Not the same as to deliver
§ There can be an obligation to deliver only for the use of the thing Sources of Obligations
o Usually a transfer of ownership • Law
• To Do • Contracts
• Not to do • Quasi-contracts
• Juridical Necessity o Elements of Quasi Contract
o Not doing our civil obligations would lead to consequences § Lawful
§ Unilateral
Civil Obligations Natural Obligations § Voluntary
- Based on law (positive law) man - Based on equity and natural law • Delicts; Acts or omissions punished by law
made - General Rule: Does not grant a right of action to • Quasi-delicts
- Gives a right of action to compel enforce the performance
performance - Qualifications: Culpa Contractual Culpa Aquilania
- Transforms into a natural o Voluntary fulfillment = Recipient may - Arises from contract - No contractual relationship between the
obligation by the passing of time retain what has been delivered - Direct liability parties
(prescription) o Court Action + No objection - Proof of non-performance of contract - Vicarious liability
- Non-performance gives rise to a - Non-performance does not give rise to a cause of - Vinculum juris exists regardless of the - Proof of negligence in selection and
cause of action action voluntary breach supervision of employees
- Vinculum juris is created by the wrongful
Essential Elements of Obligations act of the party
• Active Subject (Creditor) – Obligee
o Has the right to demand Right to Fruits
• Passive Subject (Debtor) – Obligor • When: From the time the obligation to deliver it arises
• Prestation (Subject Matter of the Obligation; Object) • Qualification: Real right over the fruits is acquired only after delivery
o Not the same as thing o Real Right: Power belonging to a person over a specific thing, without a
• Vinculum (Efficient Clause; Juridical Tie) passive subject individually determined against whom such right may be
o That which binds the parties to an obligation personally exercised
o Personal Right: Power to demand of another, the fulfillment of a prestation
Kinds of Objects • With a Suspensive Condition— From moment the condition happens
• Indeterminate/Generic Objects • With a Suspensive Term— From expiration of the period
o Indicated only by its kind • Without Term or Condition— From perfection
o Not designated and distinguished from others
o Determinable— becomes determinate when delivered Transmissibility of Rights
o Example: Horse • Rights acquired by virtue of an obligation
o Exception: Thing designated as determinate by stipulation • General Rule: Transmissible
• Limited Generic • Exceptions:
o Generic objects confined to a particular class o Law
o Class- Determinate Object o Contrary stipulation
o Example: One of my horses o Nature of right
• Determinate/Specific Object
o Individualized and can be identified or distinguished from others of its kind
[UNTS]
Breaches of Obligation • Demandable in all kinds of obligations
• Kinds of Negligence:
Breach of Obligation o Simple Negligence: Failure to comply with the diligence required
• Manner of Breach o Gross Negligence: Amounts to bad faith and may be the source of moral
o Fraud damages
o Negligence • Option of the Court: Regulate liability
o Delay o According to the circumstances
o Contravene tenor of obligation • Culpa Contractual: Fault/negligence of the debtor as an incident in the fulfillment of an
• Effect: Liable of Damages existing obligation
o Exception: Failure due to fortuitous event or force majeure • Culpa Aquilania: Fault/negligence which constitutes an independent source of obligation
§ Exception to the Exception: Stipulation that liable for damages between parties not previously bound
nonetheless
Culpa Contractual
Fraud • Fault or negligence of the debtor as an incident in the fulfillment of an existing obligation
• Malice/bad faith in the performance of an existing obligation • Negligence should be the proximate cause
o Voluntary execution of a wrongful act or a willful omissions, knowing and • Qualification: If Negligence shows bad faith—
intending the effects o Art. 1171 and Par. 2, 2201 shall apply
o Element of intent and not actual harm done • Standard of Diligence: Diligence required by the nature of the obligation and
• Demandable in all obligations corresponds with the circumstances of the persons, of the time and of the place
• Waiver of Action for Future Fraud: Void o General Rule: That provided by—
§ Law
Kinds of Fraud § Contract
• Dolo Causante (Art. 1338): Fraud in obtaining consent, is applicable only to contracts o Default: Good father of a family
where consent is necessary and thus affects the validity of the contract, making it • Standard of Care:
voidable o Ordinary: That which is expected of a good father of a family (bonus pater
o Remedy: Action for Annulment of Contract familias)
o Elements of Dolo Causante: o Extraordinary: Utmost diligence. E.g., common carriers, banks, public utility
§ Insidious words or machinations companies (Meralco vs. Ramoy) and realty firms
§ Other is induced to enter into a contract
§ Without them, he would not have agreed to enter When in Delay
• Dolo Incidente (Art. 1334): Fraud in the performance of the obligation and applicable to • General Rule: Judicial or extrajudicial demand for fulfillment of obligation
obligations arising from any source o In any form as long as it can be proven
o Remedy: Damages • Exceptions:
o Obligation so declares
Actionable Fraud § Requisite: State that after lapse of period, default will commence
• May constitute a ground to Annul a Contract o Law provides
• Requisites: § Requisite: State that after lapse of period, default will commence
o Serious § Examples: Art. 1165, 1786, 1788, 1896, 1942
o Not employed by both parties o Period is controlling motive or the principal inducement for the creation of the
• Effect of Incidental Fraud: Obliges the person employing it to pay damages obligation
o Demand would be useless
Negligence in Performance • Reciprocal Obligations
• Negligence: Omission of that diligence which is required by the nature of the obligation o General Rule: One of the parties fulfills his obligation
and corresponds with the circumstances of the persons, of the time and of the place
[UNTS]
o Qualification: Neither party incurs in delay if the other does not comply or is o Independent of the human will
not ready to comply in a proper manner with what is incumbent upon him o Impossible to foresee the event; if foreseeable impossible to avoid
o Occurrence must be such as to render obligation impossible to perform the
Kinds of Delay obligation in a normal manner
• Mora Solviendi: Default on the part of the debtor (to do or to give) o Obligor free from any participation in the aggravation of the injury or the loss
o Prestation that is due and enforceable • General Rule: Not responsible for those which could not be foreseen or though foreseen
o Cause imputable to the debtor were inevitable
§ There is no delay if not imputable • Exceptions:
o Elements: o Specified by law
§ Obligation demandable and already liquidated o Stipulation
§ Debtor delays in the performance o Nature of the obligation requires the assumption of risk
§ Creditor requires performance (judicially or extrajudicially) § Those who profit from the assumption of risk should also bear the
o Effects: loss
§ Determinate— Places the risk of the thing on the debtor o Acts of the creditor
§ Becomes liable for damage for delay § Debtor not liable if non-performance is due to force majeure, but also
• Mora Accipiendi: Default on the part of the creditor when it is due to the act of the creditor himself
o Requisite: Debtor must be able to perform obligation o Debtor in Delay
o Elements: o Promise to deliver the same thing to 2 persons of different interests
§ Offer of performance by debtor who has the required capacity
§ Offer is to comply with prestation as it should be performed Remedies Available to Creditor in Case of Breach
§ Creditor refuses performance without just cause
o Effects: Remedies of Creditor in Obligations to Give
§ Possible consignation • Determinate Thing: Specific Performance
§ Debtor responsible only for fraud and gross negligence o Option of Creditor: Compel Delivery + Damages
§ Debtor exempted from risk of loss • Indeterminate/Generic: Substituted Performance
§ Expenses for preservation, chargeable to the creditor o Option of Creditor: Ask compliance with obligation + expense of debtor
§ Interest not chargeable to debtor • Grounds for Liability even if Fortuitous Events:
§ Creditor liable for damages o Obligor Delays
• Compensatio Morae: Default of both parties o Promise to deliver same thing to 2 or more persons
o Reciprocal Obligations § Requisite: Have different interests
§ General Rule: Simultaneous fulfillment
• Effect: No demand necessary because once a party fulfills Specific Performance
his obligation and the other does not fulfill his, the latter is • Whether determinate or generic, creditor has right to ask that the same be performed
automatically in delay • If Generic—
§ Qualification: Parties scan stipulate/regulate the order in which they o Comply at the expense of debtor
shall comply with the reciprocal prestations (Different dates for o Can’t pay damages in lieu of performance when creditor insists performance
performance of their obligations) • Qualification: Damages in both cases
§ If both in default = offset
Remedies of Creditor in Obligations to Do
Fortuitous Event • Debtor fails to do obligation
• Caso Fortuito: An event that takes place by accident and could not have been foreseen • Possible Effects:
o Circumstance independent of the will of the obligor o Executed at debtor’s cost
o Act of God § Creditor may demand proper performance by himself or a 3rd person
o Act of man that could not be resisted § If only debtor can perform—
• Characteristics:
[UNTS]
• Damages Action to Rescind Obligations (Resolution)
o What has been poorly done be undone • Implied in Reciprocal ones
• Other Grounds with Similar Effects: o Reciprocal Obligation: Arise from the same cause of action; each party is a
o Done in contravention of the tenor of the obligation debtor and a creditor of the other
• Note: Specific performance is not applicable since this would be violative of the debtor’s § The obligation of one is dependent upon the obligation of the other
constitutional right against involuntary servitude o Requisite: One of the obligors should not comply with what is incumbent upon
him
Remedies of Creditor in Obligations not to Do § Not permitted for a slight or casual breach of the contract
• Person does what is forbidden him • Options of Injured Party
• Effect: Undone at his expense + Damages o Fulfillment + Damages
o If impossible or affecting 3rd persons— o Rescission of the obligation + Damages
§ Damages only o Qualification: May seek rescission after choosing fulfillment
§ Requisite: Fulfillment becomes impossible
Subrogation of Creditor to the Rights of the Debtor
• Exercise all the rights and bring all the actions of the latter for the same purpose • Court Action: Decree rescission claimed
o Exception: Actions personal to the debtor o Exception: Just cause to authorize the fixing of a period
• Impugn the acts of debtor to defraud them • Effect of Rescission: Return the status quo
• Successive Rights of Creditors • Without prejudice to the rights of a 3rd person who have acquired the thing under—
o Levy by attachment and execution upon all the property of the debtor o Compensation
o Exercise all the rights and actions of the debtor o Mortgage Law
§ Exception: Those inherently personal
o Ask for rescission of contracts made by a debtor to defraud him Resolution/Rescission (Art. 1191) Rescission (Art. 1301)
§ Accion Pauliana: Action to revoke or rescind debtors acts done to - Principal remedy - Subsidiary remedy
defraud the creditor - May be availed of even if the party has - Can only be invoked if there is no
§ Includes judicial acts allowed by debtor to transpire other remedies available other remedy
• Requisites: - Cause of Action: Substantial or - Breach is not required
o Creditor has an interest in the right of action not only because of his credit but fundamental breach - May be invoked even if both parties
because of the insolvency of debtor already complied with their obligation
o After pursuing the property in possession of the debtor - Cause of Action: is lesion or
o Malicious/negligent inaction of the debtor in the exercise of his right or action of economic injury to a party
such seriousness as to endanger claim
o Credit is demandable and liquidated Parties in Pari Delicto
o Debtor’s right must be patrimonial or capable of being patrimonial • Both parties committed a breach of obligation
o Note: Not necessary that creditor’s claim be prior to the acquisition of the right • Effect: Liability of first infractor equitably tempered by the courts
• Rights of Debtor Exempt from Subrogatory Action o If it can’t be determined who first violated the contract—
o Support § Contract deemed extinguished
o Relations of a public character § Each to bear own damages
o Rights of a honorary character
o Non-patrimonial rights
o Patrimonial rights
o Patrimonial rights
[UNTS]
Kinds of Obligations • Period depends upon the will of the debtor
o Duty of the Court: Fix the duration
Happening of which gives • Irrevocability of Duration Fixed: Once court has set the period, it cannot be changed
Suspensive
rise to the obligation by them
Performance Of
Happening of which o Court shall consider the circumstances as may have been probably
Obligation
Resolutory extinguishes the rights contemplated
already existing
Depends on the will of the Conditional Obligations
party to the juridical relation
Effect of Conditional Obligations
Potestative
Note: Prohibition is when • What: Happening of the event which constitutes the condition
the condition relies solely on • Effect: Affects the acquisition of rights, and the extinguishment or loss of those already
Whom Or Where It
the will of the debtor acquired
Depends
Depends on chance or 3rd • Condition: Every future and uncertain event upon which an obligation or provision is
Casual
person made to depend
Partly depends on will of the o Imposed by the will of a party and not a necessary legal requisite
Mixed party and partly on chance • Note: If Future + Certain = One with a term and not a condition
or 3rd person o Example: Death of a person
Divisible Can be performed in parts • Past Events: Past event + unknown to parties
Capacity To Be Performed
Cannot be performed in o Considered a condition
in Parts Indivisible
parts o Not the event but the knowledge or proof of past event that serves as the
Conjunctive All must be performed condition
Whether Obligation Can
Be Fulfilled Only one must be Kinds of Conditions
Alternative/Disjunctive
performed • Suspensive: Happening gives rise to an obligation
Positive Act • Resolutory: Happening extinguishes rights already existing
As To Nature
Negative Omission • Qualification: Even if the condition is divisible, partial compliance does not give rise to
How Made Known To Express State the obligation
Other Party Implied Merely Inferred
Possible Can be fulfilled Period Condition
Whether Obligation Can
Cannot be fulfilled either - Certain to happen - Uncertain
Be Fulfilled Impossible
physically or legally - No effect - Has effect on existence
- Always future - May be past that is unknown
Pure Obligation
• Performance does not depend upon— Potestative Conditions
o A future or uncertain event • Fulfillment of condition depends on sole will of Debtor = Whole obligation is void
o Upon a past event unknown to the parties o Requisite: Suspensive condition
• Demandability: At once • Kinds of Potestative
• Resolutory Conditions: Demandable at once o Simple: Manifestation of will but also the realization of an external act
o Qualification: Without prejudice to the effects of the happening of the event o Pure: Depends solely and exclusively upon the will
• Chance or upon the will of a 3rd person = Provisions of the Code
Period of Obligation • Qualification: Does not apply when—
• Obligation has no period + nature and circumstances one was intended o The condition is resolutory
o Option of the Court: Fix the duration § Applies only when the condition is suspensive
[UNTS]
§ Because in obligations with a resolutory conditions there already is o Fruits + interests during pendency of condition = deemed mutually
an obligation compensated
o There is a pre-existing debt • Qualification: If unilateral obligation
o General Rule: Debtor/Obligor to appropriate the fruits + interests received (sa
Unlawful/Impossible Conditions debtor/obligor na)
• Impossible, contrary to good customs or public policy, prohibited by law o Exception: Inferable from the nature and circumstances the intention of the
o Impossible from the beginning person constituting the same was different
o Effect: Obligation is void
o Qualification: Divisible obligation Retroactivity in Suspensive Conditions— Obligation to Do or Not to Do
§ Part unaffected by the unlawful condition = valid • Court to determine retroactive effect
• Condition not to do an impossible thing • Acts of Administration
o Effect: Considered as not agreed upon + Obligation becomes pure o Not affected by retroactivity
• Qualification: If impossible becomes possible— Parties have to have a new agreement o Debtor has a claim against the creditor

Positive Conditions Rules Pending Obligation to Give a Determinate Thing with a Suspensive Condition
• Condition: Some event will happen at a determine time • Thing is Lost
• Effect: Extinguishes the obligation— o Lost: Perishes, or goes out of commerce, or disappears in such a way that its
o As soon as the time expires existence is unknown or it cannot be recovered
o Indubitable that the event will not take place o Without the fault of the debtor
§ Obligation shall be extinguished
Negative Conditions o Through fault of the debtor
• Condition: Some event will not happen at a determinate time § Debtor to pay damages
• Effect: Render the obligation effective— • Deterioration of Thing:
o From the moment the time indicated has elapsed o Without the fault of the debtor
o Become evident that the event cannot occur § Impairment borne by the creditor
• If no time fixed— o Through the fault of the debtor
o Deemed fulfilled at such time as may have probably been contemplated, § Options of Creditor: Choose between—
§ Bearing in mind the nature of the obligation • Rescission + damages
• Fulfillment + damages
Constructive Fulfillment • Improvement of Thing:
• What: Obligor (Debtor) voluntarily prevents fulfillment o By nature, or by time
• Effect: Condition deemed fulfilled § Improvement to inure to the benefit of the creditor
• Requisites: o At the expense of the debtor
o Suspensive condition § Usufructuary
o Intent of obligor to prevent fulfillment • Note: Article applies only when the obligation is to deliver a determinate thing
o Actually prevents obligee from complying
• Not Applicable When: Obligations to Give with a Resolutory Condition
o Resolutory conditions • Purpose of Condition: Extinguishment of an obligation to give
o External contingency that is lawfully within the control of the obligor • Duty of Parties Upon Fulfillment: Return what they have received
o Obligor acts pursuant to a right • Loss, Deterioration, or Improvement:
o Same rules as Art. 1189 (Above)
Retroactivity in Suspensive Conditions— Obligations to Give
• General Rule: Retroacts to the day of the constitution of the obligation Obligations To Do And Not To Do with a Resolutory Condition
• Qualification: If with reciprocal prestations— • Court to determine the retroactive effect of the condition that has been complied with
[UNTS]
Obligations with a Term When Court May Fix Period
• Obligation has no period + nature and circumstances one was intended
Obligations with a Term/Period o Option of the Court: Fix the duration
• Debtor to pay when his means permit him to do so = Deemed one with a period o Note: Can’t ask for fulfillment straight-up; file an action for court to fix date first
• Duty of Court: Fix period (Art. 1197) • Period depends upon the will of the debtor
o Creditor should file an action to fix a period for the payment of the obligation o Duty of the Court: Fix the duration
o Immediate action to enforce without court fixing a period would be premature • Irrevocability of Duration Fixed: Once court has set the period, it cannot be changed
• “Means to pay” by them
o Valid obligation with a period • Other Instances where Court Fixes Period:
o Remedy of Creditor: Go to court once the debtor has the means to pay o “Means permit debtor to do so”
o Action for rescission but court finds it proper to fix period instead (Art. 1191)
Demandability of Obligations with a Term
• Term/Period: Space of time which suspends their demandability or determines their Debtor Losses of Benefit of the Period
extinguishment • Becomes insolvent after obligation has been contracted
o Requisites: Future + Certain + Possible o Exception: Gives a guaranty or security for the debt
• Day Certain— • Does not furnish to the creditor the guaranties or securities which he has promised
o When Demandable: Only when the day comes • Impairs guaranties or securities after their establishment + disappears in a fortuitous
o Day Certain: That which must necessarily come event
§ Qualification: May not be known when exactly o Exception: Gives new ones equally satisfactory immediately
• Resolutory period— • Violates any undertaking, in consideration of which the creditor agreed to the period
o When Demandable: Take effect at once • Attempts to abscond
o Qualification: Terminate upon arrival of the term
• Qualification: Where uncertainty is whether the day will come = Condition Alternative or Facultative Obligations
o Not a term
Alternative Prestations
Rules Pending Obligation to Give with a Resolutory Condition • Bound by different prestations
• Same rules as Art. 1189 • Fulfillment: Performance of one of them
• Qualification: Can’t receive part of one and part of the other (Indivisibility)
Benefit of the Period/Term • Concentration: Act of making a choice in alternative obligations
• General Rule: Presumed established for the benefit of the creditor and debtor
• Exception: Tenor of obligation or other circumstances it should appear that the period Who has Right of Choice
has been established in favor of one or of the other • General Rule: Debtor
o Example: “On or before” for the benefit of the debtor; “within” • Exceptions:
• If for the creditor— May demand payment at any time + debtor can’t compel creditor to o Expressly granted to creditor
accept payment o Right of choice given to a third party
• If for the debtor— Can oppose premature demand for payment + may pay at any time + • Qualification: Can’t choose that which is impossible, unlawful or could not have been
can compel creditor to accept payment the object of the obligation
• Contracts of Loan— • How Right of Choice is Exercised (AVS):
o Without Interest o Choosing + Communicating
§ Deemed for the benefit of the debtor o Impliedly – On due date
o With interest • When Effective: Upon communication
§ Mutual benefit
§ Debtor can’t pay earlier against will of creditor Debtor Loses Right of Choice
• Alternative obligation + only one is practicable
[UNTS]
• Effect: Debtor loses right of choice - If everything is lost through the debtor's fault, the latter is liable to indemnify the
creditor for damages
Loss of Choice by Fault of Creditor - If some things are lost through the debtor's fault, the debtor can still choose
from those remaining
• Debtor cannot make a choice + through Creditor’s act
- If all are lost through fortuitous event, the obligation is extinguished
• Who has Right of Choice: Debtor - If all prestations but one are lost through fortuitous event, & the remaining
• Effect: Rescission + Damages prestation was lost through the debtor's fault, the latter is liable to indemnify the
creditor for damages.
Creditor’s Right to Indemnity - If all but one are lost through the fault of the debtor & the last one was lost
• Alternative obligation through fortuitous event, the obligation is extinguished
• Who Has Right of Choice: Debtor
• Grounds: Through the fault of the debtor— Facultative Obligation
o Object of obligations has been lost • One prestation agreed upon + Obligor may substitute another
o Compliance has become impossible o Note: Debtor always has the right; not the same as alternative obligations
• Effect: Creditor has right to indemnity • Who Has Right of Choice: Debtor only
• Amount of Indemnity: Value of the last thing which disappeared/Became impossible o Not really a right of choice but a right of substitution
o Qualification: Damages other than the value of the thing may also be awarded • Loss of Substitute:
o Via Negligence of Debtor/Obligor
Right of Choice with Creditor; Obligations of Debtor For Loss of Thing: § Not liable
• One lost via fortuitous event o Qualification: If substitution already made
o What creditor should choose from the remaining § Debtor/Obligor liable for loss through his delay, negligence or fraud
o That which only remains (if only one subsists)
• One lost via Debtor’s fault Alternative Facultative
o Creditor may claim any of those subsisting/remaining - There are various prestations all - Only one principal prestation constitutes the
o Price of that which has disappeared (via Debtor’s fault) + Damages of which constitute parts of the obligation, the accessory being only a means
• All things lost via Debtor’s Fault obligation to facilitate payment
o Claim price of any of them + Damages - All are due - Only one is due
• Obligations to do or not to do— - Duty of care applies to all 3 until - Duty of care does not apply to the substitute
o Same Rules as above choice is made - Only the debtor can choose the substitute
• Requisite for Application of Rules: Right of Choice with Creditor - Right to choose may be given to prestation
the creditor - Impossibility of principal prestation is
- If one or some are lost through fortuitous event, the creditor may choose from - Contract not impaired until all sufficient to extinguish the obligation (even if
those remaining.- Article 1205 (1) are lost substitute is possible); Loss of substitute
- If one or some are lost through the debtor's fault, the creditor has choice from - Nullity of one prestation does not does not affect the obligation
the remainder or the value of the things lost plus damages.- Article 1205 (2), invalidate the obligation, which is - Nullity of the principal prestation invalidates
Right Of
Choice
supra still in force with respect to those the obligation & the creditor cannot demand
- If all are lost through the debtor's fault, the choice of the creditor shall fall upon which have no vice the substitute even when this is valid
With
the price of any of them, with indemnity for damages.-- Article 1205 (3), supra.
Creditor
- If some are lost through the creditor's fault, the creditor may choose from the
Joint and Solidary Obligations
remainder
- If all are lost through fortuitous event, the obligation is extinguished
- If all are lost through the creditor's fault, the obligation is extinguished Joint Obligation
- When only one prestation is left (whether or not the rest of the prestations have • Each of the debtors is liable only for a proportionate part of the debt or each creditor is
Right Of entitled only to a proportionate part of the credit
been lost through fortuitous event or through the fault of the debtor), the debtor
Choice
With
may perform the one that is left.- Article 1202. • There are as many obligations as there are debtors multiplied by the number of creditors
- If the choice is limited through the creditor's own acts, the debtor can ask for o Number of Obligations = Debtors x Creditors
Debtor
resolution plus damages
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• Other Terms: Mancomunada or mancomunada simple or pro rata (Tolentino) oNote: Where there are no words used to indicate the character of a liability, the
• Effects: phrase "I promise to pay," followed by the signatures of 2 or more persons,
o The demand by one creditor upon one debtor, produces the effects of default gives rise to an individual or solidary responsibility
only with respect to the creditor who demanded & the debtor on whom the • Terms Indicating Solidary Liability:
demand was made, but not with respect to the others 1. Mancomunada solidaria 4. Juntos o separadamenta
o The interruption of prescription by the judicial demand of one creditor upon a 2. Joint and several 5. Individually and collectively
debtor does not benefit the other creditors nor interrupt the prescription as to 3. In solidum 6. Individually and jointly
other debtors
o On the same principle, a partial payment or acknowledgement made by one of Impossibility of Division of Joint Obligation
several joint debtors does not stop the running of the statute of limitations as to • Joint Indivisible Obligation
the others • Right of Creditors: Prejudiced only by their collective acts
o The vices of each obligation arising from the personal defect of a particular • Enforcement of Debt: Proceed only against all debtors
debtor or creditor does not affect the obligation or rights of the others • If one is insolvent—
o The insolvency of a debtor does not increase the responsibility of his co- o Others not liable for his share
debtors, nor does it authorize a creditor to demand anything from his co-
creditors Act of One Solidary Creditor
o In the joint divisible obligation, the defense of res judicata is not extended from • General Rule: Do whatever may be useful to the others
one debtor to another. (Manresa) • Qualification: Can’t do anything prejudicial to others

Kind of Joint Obligations Parties Assignment of Right of a Solidary Creditor

Active Joint on the Creditor’s side • General Rule: Can’t assign right
Passive Joint on the Debtor’s side • Exception: With the consent of the others
Mixed Multiple parties on each side
• Effects of Unauthorized Transfer: No effect, no rights transferred
o Assignee does not become solidary creditor, co-creditors and debtor/s not
Solidary Obligation bound by such transfer
• Debtor is liable for the entire obligation or each creditor is entitled to demand the whole o Payment made by this assignee will not extinguish obligation
obligation
• Other Terms: Mancommunada solidaria; joint and several; in solidum Right of Creditor Against Solidary Creditors
• If there is only one obligation, it is a solidary obligation • Proceed against—
o Any one of the solidary debtors
Kind of Solidary Obligations Parties o Some of them
Active Several Creditors + One Debtor o All of them simultaneously
Passive One Creditor + Several Debtors
• Qualification: Demand towards one does not preclude demand towards others
Creditor can only demand his share o Requisite: Debt not yet fully collected
Mixed Several Creditors + Several Debtors
Effect of Remission by Creditor
Solidary Liability • What: Solidary Debtor’s debt remitted
• Concurrence of 2 or more creditors or 2 or more debtors does not imply Solidarity • Qualification: Debtor may still liable to his co-debtors
• When Solidary Liability Applicable: o Requisite: Debt totally paid by one before remission effected
o Obligation expressly states
o Law expressly states Remission of Whole Obligation
o Nature of obligation requires • Remission obtained by one Solidary Debtor
o AVS: Final Judgment • Effect: Does not entitle him to reimbursement from is co-debtors
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Effect of Loss/Impossibility of Obligation 1. Share of each co-creditor reduced since the whole
• Without fault of solidary debtors obligation is reduced
o Obligation extinguished 2. All the co-creditors’ share shall be proportionately
o Restitution reduced
• With fault of any one of them 5. Joint Debtors
o All responsible to the creditor for the price + damages + interest a. Number of Obligations = Creditors x Debtors
o Qualification: Claim from guilty/negligent debtor i. Divide total obligation by the number of creditors à Divide the
• Via fortuitous event + after solidary debtor in delay amount by the number of debtors to get the liability of each Debtor
o Same effect as above ii. Will give you the number of obligations
b. Liable only for his share
Three Defenses of Solidary Debtor: i. Minority or insanity or NCCR of one co-debtor does not affect the
• Those derived from the nature of the obligation = total defense share of another joint debtor
• Those defenses personal to the debtor-defendant ii. Each debt is distinct from the other
• Those defenses personal to other co-debtors c. Default share is in equal parts
o Defense as to the share corresponding to other debtors = partial defense 6. Solidary Debtors
a. Liable for the whole share
Guide for Computation of Shares b. Minority, Insanity or NCCR of one solidary debtor affects the total amount of
the obligation (Partial Defense only)
1. Check for keywords that would indicate whether obligation is joint or solidary i. Total amount of obligation is reduced
2. Is the joint-ness or solidary-ness on the debtor or creditor side? ii. Will still be liable for the insolvency of his co-debtor
a. Do not confuse or mix the joint/solidary obligation of the debtor with the 1. Liability of NCCR-ed debtor is only his proportionate
joint/solidary right of the creditors share to the share of the insolvent debtor
b. Active Solidarity or Passive Solidarity iii. May be held liable to reimburse when co-debtor has paid whole
3. Joint Creditors obligation before NCCR
a. Divide by the number of creditors the total amount of the obligation c. NCCR of whole obligation = obligation extinguished
i. Amount is the share they can collect
Obligations with a Penal Clause
ii. Default share is in equal parts
b. Can claim only his share Obligations with a Penal Clause
i. Liable to reimburse only if he collects more than his share • Penal Clause: Accessory undertaking to assume greater liability in case of breach
4. Solidary Creditors
• Characteristics of Penal Clause:
a. Can collect the entire share
o Subsidiary: Upon non-performance
i. Liable to distribute the amount collected in accordance with the
§ General Rule: Takes the place of performance
share of each
ii. Default share is in equal parts • Only penalty may be demanded
§ Exception: Right “clearly” granted to creditor (joint)
b. Cannot do anything prejudicial
i. Unless with consent • Principal Obligation + Penalty
ii. Prejudicial act without consent, shall affect only the share of the o Exclusive
co-creditor who acted in prejudice § Penal Clause is for reparation
1. Total obligation may be reduced, but only the share of § Takes the place of damages
the creditor who prejudicially will be reduced • Nullity of Penal Clause: Does not affect principal obligation
2. Co-creditors shall still get his/her share o Note: Nullity of principal obligation = nullity of penal clause
3. NCCR of the whole obligation = co-creditor can’t
demand payment from debtors, but may demand from Penal Clause + Liquidated Damages
co-creditor who acted prejudicially • General Rule: Penal clause serves as a substitute for indemnity for damages + interest
iii. Prejudicial act with consent affects the whole obligation (Subsidiary)
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• Exception: Imposition of damages (Despite penal clause)— Extinguishment of Obligations
o Contrary Stipulation
o Obligor refuses to pay penalty Modes of Extinguishment
o Guilty of fraud in fulfillment of obligation • Payment or performance
• Penalty is a separate obligation with its own peculiar characteristics • Loss of the thing due
o It is not a condition • Condonation or remission of the debt
o Only give you specific circumstances where penalty arises • Confusion or merger of the rights of creditor and debtor
o It is not alternative; you cannot choose (See Art. 1227) • Compensation
• Novation
Options of Creditor with Penal Clause
• Annulment
• General Rules:
• Rescission
o Debtor can’t exempt self from performance by paying penal clause
§ Exception: Expressly reserved for him • Fulfillment of a resolutory condition/period
§ “Expressly reserved” does not require that it be stipulated, it may be • Prescription
inferred from the nature of the obligation • Mutual dissent/desistance (Saura v DBP)
o Creditor can’t demand fulfillment of obligation + satisfaction of penalty
§ Exception: Clearly granted Payment or Performance
• Qualification: Creditor decides to require fulfillment of obligation + becomes impossible
without Creditor’s fault Definition of Payment
o Effect: Penalty may be enforced • Delivery of money
o Note: Will happen only if through debtor’s fault or delay, for penalty to become • Performance in any other manner of an obligation
enforceable; because if through fortuitous event without creditor’s nor debtor’s
fault, principal obligation would be extinguished and so will the penal clause. Substantial Performance in Good Faith
• Substantial performance in good faith
Option of Judge • Effect: Debtor may recover as if there had been strict and complete fulfillment
• Equitably reduce penalty o Less: Damages suffered by obligee
• Ground: Principal obligation partly or irregularly complied with
• Qualification: May be reduced even without performance at all Requisites for Constructive Fulfillment
o Requisite: Penal clause iniquitous or unconscionable • Obligee accepts performance
• Knows incompleteness or irregularity
Alternative Obligations Obligations with a Penal Clause • Without expressing any protest/objection
- 2 or more obligations are due - There is only 1 principal obligation; only in
but performance of 1 is case of non-performance shall the penal Acceptance of Payment by 3rd Person
enough clause be enforceable • 3rd person has no interest in the fulfillment of the obligation
- Impossibility of one of the - Impossibility of principal obligation = Penal o General Rule: Creditor not bound to accept payment/performance by a 3rd
obligations = Others subsist Clause extinguished person
- Debtor can choose which - Debtor cannot choose to pay penalty to avoid § Can’t be compelled to accept payment
prestation to fulfill performance, unless expressly granted o Exception: Stipulation to the contrary
o Right of 3rd Person: Demand from debtor what he has paid (to the extent
Facultative Obligation Obligations with a Penal Clause beneficial to the debtor)
- Debtor has power to make substitution - General Rule: None § Pays for another
§ Note: No subrogation
- Creditor cannot demand both - Exception: Expressly granted
§ Exceptions: Recover only insofar as has been beneficial to debtor
prestations - Right to demand both may be given
• Without the knowledge of the debtor
• Against the will of the debtor
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• 3rd person has an interest in the fulfillment of the obligation or with consent • By the creditor's conduct, the debtor has been led to
o General Rule: Creditor can be compelled to accept payment believe that the third person had authority to receive the
o Rights of 3rd Person: payment
§ Demand reimbursement for full amount o Payment made in good faith to any person in possession of the credit
§ Subrogation: 3rd party may exercise rights belonging to the creditor
Payment of Money Debts
When Creditor May Be Bound To Accept Payment From A Third Person • General Rule: Currency stipulated
• Stipulated • Qualification: Currency which is legal tender in the Philippines
• 3rd party payor has an interest in the fulfilment of the obligation o Requisite: Not possible to deliver currency stipulated
• Debtor gives his consent
Delivery of Promissory Notes Payable to Order, Bills of Exchange, Other Mercantile
Obligations to Give Documents
• Payment by one without free disposal of the thing + without capacity to alienate • Produce effect of payment
• Effect: Not valid • Requisite: Alternatives
• Qualification: Without prejudice to the provisions of Natural Obligations o When cashed
o Impaired through the fault of the creditor
Payment to Incapacitated Person
• Who: Payee incapacitated to administer his property Inflation or Deflation of Currency
• General Rule: Valid • Extraordinary inflation or deflation
• Requisite: Alternatives • Effect: Value of currency at time of establishment shall be the basis of payment
o Incapacitated person has kept the thing delivered • Exception: Contrary agreement
o Insofar as the payment has been beneficial to him
Where Payment Made
Payment to 3rd Person • General Rule: Place stipulated
• Valid insofar as it has redounded to the benefit of the creditor • Default Rules:
• General Rule: Prove benefit o Delivery of determinate thing
• Exceptions: § Wherever thing is at moment obligation was constituted
o 3rd person acquires creditors rights after payment o Any other case
o Creditor ratifies the payment to a 3rd person § Domicile of debtor
o Debtor has been led to believe that the 3rd person had authority to receive the o Possible Liability: Debtor changes his domicile—
payment § In Bad Faith
§ Led to believe by creditor’s conduct § After he has incurred in delay
Payment to Wrong Party o Effect: Shall bear the additional expenses
• General Rule: Payment to anyone not authorized under Art. 1240 is a void payment
o Effect of Payment: Debtor may be compelled to pay again Checks as Legal Tender
• Exceptions: • Checks representing deposit money
o When without notice to assignment of credit, he pays to original Creditor o Not considered legal tender
o It redounded to the benefit of the creditor • General Rule: Creditor cannot be compelled to receive payment through checks
§ When Benefit need not be Proven: • Option of Creditor: Accept checks in the payment of public/private debts
• After the payment, the 3rd person acquires the creditor's • Qualification: Check considered equivalent to delivery to creditor
rights o In an amount equal to the amount credited to his account
• Creditor ratifies the payment to the 3rd person o Requisite: Check has been cleared + credited to the account of creditor
o Extinguishment of Obligation: Only at the time the check or other mercantile
documents have been encashed
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Special Form Consent of Transfer of Ownership Effect as to Extinguishment • Exceptions:
of Payment Creditor o Stipulation/Agreement by the parties
Dation in Needed as creditor There is a transfer of Total extinguishment o Application is made by the party for whose benefit the term has been
Payment has to accept thing ownership constituted
Application of Not Necessary; Yes but to which debt No total extinguishment ever;
Payment Debtor can shall it apply you have the choice to apply
• Receipt for Payment
designate because you do not have o Debtor accepts from creditor a receipt
enough to pay for all o General Rule: Can’t complain
Cession Needed No transfer; Merely Extent of Net Proceeds only o Exception: Cause for invalidating the contract
constituted as agents to (Exception: Parties agree
sell properties otherwise) Limitations on Option of Debtor
Consignation Not Necessary in There needs to be Not total if Creditor makes a • General Rule: Debtor has the right to choose to which obligation the payment shall be
Judicial creditor acceptance or reservation as to balance applied
Consignation judicial order
• Exceptions:
o Creditor can’t be compelled to accept partial payment (Art. 1248)
Application of Payments o Debtor cannot apply payment to principal if interest has not yet been paid (Art.
1253)
Default Rules in Various Debts
• General Rule: Debt most onerous deemed satisfied Interest in Payment of Debts
• Grounds for Application of Article: • What: Debt produces interest
o Payment cannot be made in accordance with preceding rules • Presumption: Principal not deemed paid until interests have been covered
o Application cannot be inferred from other circumstances
• Qualification: If debts of same nature and burden— Applied to all of them Dation in Payment
proportionately
Dation in Payment
Debts Considered More Onerous • Property is alienated to the creditor
1. Principal in Obligation> Surety in Another 8. Debt with an Encumbrance = That which
o Thing or right
2. Sole Debtor in One obligation > Solidary is Secured
Debtor in 9. Bond where Principal and Surety are • Alienated in satisfaction of a debt in money
3. Original Creditor > New Creditor solidarily bound + Small Portion pertains • Effect: Governed by law on sales
4. As Among Solidary Debtors = Part of the to Surety = Unsecured Portion more o Warranties and breach of warranties are applicable
debt corresponding to each is more Onerous o If satisfaction of a non-monetary obligation = Novation and not a sale
burdensome than as to every Debtor 10. Indemnity for Damages: Those with a • Requisites:
5. Various Debts + All without Interest = Oldest Penal Clause > Those governed by the o Delivery of the thing
6. Various Debts + Some with Interest = That General Rules on Damages
o Prior acceptance
with Highest Interest Rate 11. Liquidated debts > Unliquidated ones
7. Unsecured Debt + Interest > Secured Debt + 12. Those where the debtor is in default > o Consequent transfer of ownership
Without Interest Those where he is not
Cession
Various Debts Of Debtor; Same Creditor
• Requisites for Application of Article: Voluntary Cession/Assignment
o Debtor has various debts • Option of Debtor: Cede or assign his property to his creditors
o Debts are of the same kind o In payment of his debts
o Creditor of the debts are one and the same • General Rule: Releases the debtor from responsibility for the net proceeds of the thing
• Option of Debtor: Declare to which of them the payment must be applied assigned
o Declare at the time of making payment o Exception: Contrary stipulation
• General Rule: Application of payment shall not be made to payment not yet due • Note: Agreement on cession between debtor and creditor are governed by special laws
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• General Rule: Properties exempt from Execution are not covered by cession o Amount or thing due is deposited in court (Art. 1258)
o Exception: Debtor waives exemption o Notice given to interested parties after consignation is done
• CAU: Does the debtor need to be insolvent? Authors have different opinions, but Atty. • Effect of Refusal: Debtor released from responsibility by the consignation of the
Uribe agrees with Atty Sta. Maria that the debtor need not be involved; financial difficulty thing/sum due
suffices
Prior Announcement
Dation in Payment (Art. 1245) Cession or Assignment (Art. 1255) • Announce consignation to the persons interested in the fulfillment of the obligation
- Ownership of the thing is transferred to - No such transfer • Effect of Non-Compliance: Does not invalidate consignation + liable for damages
the creditor - Obligation is extinguished only insofar (Tolentino)
- Obligation may be totally extinguished as the net proceeds • Soco v Militante: Consignation is Void— Without the notice first announced to the
- Does not involve plurality of creditors o Exception: Exempt from persons interested in the fulfillment of the obligation, the consignation as a payment is
- Involves a specific thing execution void
- May be made even by a solvent - Involves plurality of creditors
debtor; merely involves a change of - Supposes financial difficulty on the Options of Debtor (Cancellation/Withdrawal)
the object of the obligation by part of the debtor • May ask judge to order the cancellation of the obligation
agreement of the parties and at the • Withdraw the thing or the sum deposited (As a Matter of Right)
same time fulfilling the same o Requisites for Withdrawal: Alternatives
voluntarily § Before creditor accepts consignation
§ Before a judicial declaration of consignation is made
Consignation o Effect of Withdrawal: Obligation remains in force

• Consignation: Deposit of the object of the obligation in a competent court in accordance
with rules prescribed by law, after the tender of payment has been refused or because of
circumstances which render direct payment to the creditor impossible
o It extinguishes the obligation
Consignation
• Requisites:
o There is a debt due
§ Note: Relate to obligations whose period was established for the
benefit of one or both parties
o Legal Grounds for Consignment:
§ Creditor is absent or unknown, or does not appear at the place of
payment
§ Creditor is incapacitated to receive the payment at the time it is due
§ Refuses to give a receipt, without just cause
§ 2 or more persons claim the same right to collect
§ Title of the obligation has been lost
§ If Creditor refuses without just cause to accept it—
• Debtor makes a tender of payment
o There is previous notice to consign to the persons having interest (Creditor) in
the fulfillment of the obligation (Art. 1257)
§ Note: Tolentino is of the opinion that it does not invalidate the
consignation but merely makes the debtor liable for damages
Loss of Determiante Thing Due to Impossibility or Difficulty of Performance
Loss/Destruction of a Determinate Thing
• General Rule: Debtor not Liable for Loss/Destruction due to a fortuitous event
o Requisites:
§ Lost/destroyed without the fault of the debtor
§ Before he has incurred delay
o Delay is not a factor to consider in determining whether the obligation has been
extinguished or not
§ Only relevant insofar as the remedies of the creditor against the
debtor are concerned
• Exception: Obligation is not extinguished + Damages
o Obligor liable for fortuitous events under law
o Stipulation so provides
o Obligation requires the assumption of risk
Loss/Destruction of an Indeterminate Thing
• General Rule: Does not extinguish the obligation
• Exceptions:
o Thing goes out of commerce
o Legal impossibility
o Limited Generic: Generic thing belongs to a particular group and the loss
pertains to the whole group and not only the thing itself
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Presumption of Fault o Implied
• Presumption: Presumed that the loss was due to his fault • As to Extent
o Requisite: Lost in the possession of the debtor o Total
o Effect: Burden of proof is on the debtor o Partial: May be partial as to amount, as to the accessory obligation, or as to a
• Qualification: Presumption does not apply in cases of— certain amount of debt (in case of solidarity)
o Earthquake • As to Manner of Remission
o Flood o Inter vivos
o Storm o Mortis Causa (In the form of a will)
o Other natural calamity
• Exception: Contrary proof Implied/Tacit Remission
• Delivery of private document evidencing credit by the creditor to the debtor
ifficulty of Prestation o Requisite: Delivery his voluntary
• Effect: Obligor may be released from the obligation • Effect of Delivery: Implies a renunciation of the action which the Creditor may have
o Qualification: In whole or in part against the debtor
• Requisites: • Qualification: Waiver may be claimed to be inofficious
o Event or change in the circumstances that could not have been foreseen at the o Debtor and his heirs may claim that delivery was by virtue of payment of the
time of execution of the contract debt
o Such event or change makes the performance extremely difficult but not • Other Form of Implied/Tacit Remission: Voluntary destruction or cancellation of the
impossible evidence of credit by the creditor with intent to renounce his right
o Such event or change is not due to the act of any of the parties
o Contract concerns a future prestation Private Document of Debt In Debtor’s Possession
• Qualification: Disappearance of the protected interest of the creditor (which is to be • Private document containing the debt + found in possession of the debtor
protected by the obligation), the obligation is extinguished • General Rule: Presumed delivered by creditor voluntarily
• Exception: Contrary is proved
Obligation form a Criminal Offense
• General Rule: Debtor not exempted from payment Presumption of Remission of Pledge
o Whatever may be the cause for the loss • Presumption: Pledge has been remitted
• Exception: Thing having been offered by him to the Creditor who refuses without • Requisites:
justification o Thing pledge found in possession of debtor/3rd person owner
o After delivery to creditor
Condonation or Remission
Confusion
• Condonation/Remission: Act of liberality, by virtue of which, without receiving any
equivalent, the creditor renounces the enforcement of an obligation, which is onfusion of Rights
extinguished in its entirety or in that part or aspect of the same to which the remission • Merger/Confusion: Meeting in one person of the qualities of the creditor and debtor with
refers respect to the same obligation
• Requisite: Acceptance of the obligor • Requisites:
o Express or implied o Merger of Creditor and Debtor in the same person
• Qualification: Subject to the rules on Inofficious donations § Must take place between the credit and the principal debtor
• Note: Rules of Joint and Solidary Obligations and effects on Condonation/Remission o Must involve the very same obligation
o Must be total
Kinds of Condonation • Effect: Obligation is totally extinguished (Always)
• As to Form
o Express: Made in accordance with the forms of ordinary donations
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Question: A borrowed money from B for P3B in 1998. In 2005, there was merger of the credit o Partial: Amounts are not equal; that is total as to the debt with lower amount
and the debt in the person of B. In 2014, there was rescission of such merger. On 2016, B • As to Origin/Cause
filed an action against A for the collection of the P3B. A put up the defense of prescription. Will o Legal: By operation of law because all requisites are present
the action prosper? o Facultative: Can be claimed by one of the parties
• Yes. The running of the prescriptive period is suspended during the time of merger, i.e., § Example: When one of the obligations has a period for the benefit of
2005 to 2014 one party alone and who renounces that period so as to make the
• This is because B cannot be expected to sue itself. As such, it has only been 9 years obligation due
from the time the obligation was constituted to the time the action was filed (1998-2005, o Conventional: Parties agree to compensate their mutual obligations even if
2014-2016) some of the requisites are lacking (Art. 1282)
o Judicial: Decreed by the court in a case where there is a counterclaim (Art.
Confusion vis-à-vis Guarantors 1283)
• Merger in the person of the principal debtor or creditor
• Effect: Guarantors also benefitted Requisites of Legal Compensation
• Qualification: Confusion between Guarantors and Creditors does not extinguish • Parties must be mutual principal debtors and creditors in their own right
obligation o Note: Principally bound would exclude guarantors/sureties
• Both debts must be due and demandable
Confusion in Joint Obligations o Need not be due at the same time; one debt may be due before the other as
• General Rule: Does not extinguish joint obligation long as at time of compensation both are due
• Exception: As regards the corresponding share of the Creditor or Debtor who merged • Debts must pertain to sums of money, or if consumables they must be of the same kind
grand quality
Compensation o No compensation in reciprocal obligations where there are always different
prestations
Compensation • Over neither of them there be any retention or controversy, commenced by third persons
• Compensation: Mode of extinguishment to the concurrent amount, the obligations of and communicated in due time to the debtor
those persons who in their own right, are reciprocally creditors and debtors of each other
• 2 persons are creditors and debtors of each other (in their own right) When Legal Compensation Improper
• One of the debts arises from—
Compensation Payment o Depositum
Capacity of Party to Dispose Not necessary because it takes Indispensable § As to the depositary
of Thing effect by operation of law o Obligations of a depositary or of a bailee in Commodatum
Extent of Extinguishment of May be partial Must be complete § As to the bailee
the Obligation • Against a creditor’s claim for gratuitous support (Subsistence support)
o As to the one giving support
Compensation Merger o Exceptions:
Number of Obligations Always 2 Only one § Support in arrears
Parties 2 persons are mutually the creditor Creditor and the debtor § Contractual support beyond the amount for legal support
and debtor of each other become one and the same
• Civil liability arising from a penal offense
Compensation Counterclaim
Need to be Alleged Need not be alleged and proven because it Must be alleged and
Conventional Compensation
takes effect by operation of law proven • Option of Parties: Compensation of debts which are not yet due
• Some of the requisites for legal compensation are lacking
Kinds of Compensation
• As to Effects/Extent Judicial Compensation; Setting Off of Damages
o Total: 2 obligations are of the same amount • One of the parties to a suit over an obligation has a claim for damages against the other
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o Counterclaim; Cross-claim Kinds of Novation:
• Option of Parties: Set off by proving— Kinds of Novation
o His right to damages As to Subjective/Personal— Changing the Subject
o Amount thereof Nature
Active: Third person is subrogated to the rights of the creditor
• By agreement or express
Compensation vis-à-vis Assignment of Rights by Creditor
o Art. 1300 and 1301
• Creditor assigns right to 3rd person + Debtor consents to the assignment • By Law or Implied
o General Rule: Debtor cannot set up compensation against the assignee o Art. 1302
§ Compensation between him and the creditor-assignor
o Exception: Debtor notifies creditor-assignor of his reservation of his right to Passive: Third person is substituted to the person of the debtor
compensation • It should be clear to both parties that the new debtor is in lieu of the old debtor
§ At the time he gives his consent • Common Requisite: Creditor’s consent
• Creditor communicates cession + Debtor does not consent • Expromision: Without knowledge or against the will of the original debtor
o Effect: Debtor may claim compensation of debts previous to cession o Old debtor is not the one who proposed
• Creditor assigns right to 3rd person + Without knowledge of debtor o Effects:
§ New debtor can recover only up to the extent that the old
o General Rule: Debtor may set up compensation of all credits prior to + later
debtor was benefitted
ones § Creditor can’t run after old debtor if new debtor becomes
o Qualification: May set up compensation until he had knowledge of assignment insolvent
• Delegacion: With consent or knowledge of the original debtor but without any
Novation objection
o It is the debtor who offers the change
Dual Function of Novation o Delgante— Old debtor
• Extinguishes the obligation and creates a new one o Delegado— New Debtor
o Delegatorio— Creditor
• Requisites:
o Effects:
o Previous valid obligation § Whole amount paid regardless of the extent the old debtor
o Agreement of all parties to a new contract was benefitted
o Extinguishment of old obligation § Creditor can run after old debtor if new debtor is insolvent
o Validity of new obligation • Requisite: (Alternatives)—
• Relevance of Determining Whether Novation Took Place: o Insolvency already existing and of public
o Vitiation of Consent – In the previous obligation, is not carried to the new knowledge
obligation if there is no such vitiation of consent in the novation o Known to the debtor
o Prescription – If there is no novation, the prescriptive period of the previous Form Express
obligation continues to run
Implied
• Note: Death of one of the creditor: the new creditor is(are) the heir(s), there is no Extent Total
novation
o Mere change in the person of the creditor does not cause novation Partial

How Obligations Modified Passive Subjective Novation

• Changing their object or principal conditions
• Substituting the person of the debtor
• Subrogating a 3rd person in the rights of the creditor
• Novation: Substitution of a new debtor in the place of the original one
o Requisite: Consent of the creditor
• Qualification: May be made even without the knowledge or against the will of the OG
debtor
• Effect of Payment by New Debtor: Art. 1236 and Art. 1237
o Demand from debtor what he has paid
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§ Pays for another Effect of Subrogation
§ Exceptions: Recover only insofar as has been beneficial to debtor • Transfer to the person subrogated
• Without the knowledge of the debtor • What is Transferred: Credit + all rights appertaining thereto
• Against the will of the debtor o Rights against the debtor or 3rd persons (Guarantors, Possessors of
o Who: Person who pays on behalf of the debtor who pays— mortgages)
§ Without knowledge • To Whom Transferred: Person subrogated
§ Against the will of the latter • Qualification: Subject to stipulation in a conventional subrogation
§ Effect: Can’t compel creditor to subrogate him in his rights
Partial Payment
Novation vis-à-vis Accessory Obligations • Creditor receives partial payment
• Principal obligation is extinguished by novation • Option of Creditor: Exercise right to remainder
• General Rule: Accessory obligations extinguished • Qualification: Has preference over the payor-3rd person
• Exception: Stipulation pour atrui o 3rd person has been subrogated in his place by virtue of the partial payment of
o Requisite: 3rd person for whose benefit the obligation was constituted did not the same credit
give his consent

Effect of Void New Obligation

• New obligation void
• General Rule: Original subsists
• Exception: Parties intended the former relation be extinguished in any event

Effect of Void Original Obligation

• Original Obligation is void
• General Rule: Novation is void
• Qualifications: Novation not void
o Annulment may be claimed only by the debtor
o Ratification validates acts which are voidable

Conditions Attached to Original Obligation

• General Rule: New obligation under same condition
• Exception: Otherwise stipulated

Conventional Subrogation of a 3rd Person

• Conventional subrogation of a 3rd person
• Requisite: Consent of original parties + 3rd person

Instances where Legal Subrogation is Presumed

• Creditor pays a preferred creditor
o Qualification: Even without the debtor's knowledge
• Uninterested 3rd person pays with the approval of the debtor
o Qualification: Express or tacit approval
• Interested person pays
o Qualification: Even without knowledge of the debtor
o Without prejudice to the effects of confusion as to interested person’s share
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CONTRACTS o Remaining period of the contract must not be less than 730 days
o Creditor increase the compensation rate once a year on anniversary date
Elements of a Contract Elements of an Obligation
1. Subject Matter/Object 1. Object 3rd Party Determination
2. Consent of the Contracting Parties 2. Subject • General Rule: Determination of Performance may be left to a third person
3. Consideration 3. Cause • Qualification: Decision not binding until made known to both contracting parties
o Exception: Determination is evidently inequitable
Requisites of a Contract § Effect: Not obligatory + Courts to decide what is equitable under
• Consent of the contracting parties circumstances
• Object certain (Subject Matter)
• Cause of the Oblgiation Relativity of Contracts
• General Rule: Contract takes effect only between the parties, their assigns and heirs
Characteristics of Contracts which are referred to as privies
• Mutuality of Contracts • Exceptions:
• Relativity/Privity of Contracts o Stipulation Pour Atrui
§ Requisites for Stipulation Pour Atrui:
First Characteristic—Art. 1305: Mutuality of Contracts • Stipulation is not the entirety of the contract, only a part of
• A person binds himself with respect to the other, to give something or to render some it; an incidental part of a contract, but nevertheless the
service intent to give benefit to a stranger is clearly inferable/seen
o To commit oneself from the contract
o When you bind yourself, you bind your patrimony • Stipulation that benefits the third person, must be accepted
• Binding Effect: Spec Per or Resc + damages in Either case by a third person
• Third person, for whom the benefit is given, did not pay any
Auto Contracts consideration for the benefit
• One person is responsible for the perfection of the contract but this person is acting in • The third person is not merely a representative of any of
two capacities, one in behalf of himself, one in behalf of another the contracting parties
• CAU: Generally valid: the number of parties is not determinative of the existence of a • Communication of acceptance to the obligor is required
contract; what is important is that there be at least 2 declaration of wills o Contracts creating Real Rights and successors-in-interest
o Accion Pauliana (Par. 3, Art. 1381, Art. 1313)
Kinds of Elements of a Contract o Tortious Interferers (Art. 1314)
• Essential: Those without which the contract cannot exist
• Natural: Those which exist as part of the contract even if the parties do not stipulate it Stages of a Contract
because the law is deemed written therein • Negotiation
• Accidental: Those which are agreed upon by the parties and which cannot exist without • Perfection
being stipulated • Performance
• Consummation
Escalation Clause
• Where one increases/decreases compensation of one of the parties Offer and Acceptance
• When Void: When the increase is dependent solely upon the will of one of the parties • Offer: Definite + Complete + Intentional
o This is void for violation of the principle of mutuality of contracts • Acceptance: Absolute + Unqualified
• Requisite: Increase/decrease is based on a valid and reasonable standard o Qualification: Follow the manner specified (if any)
• Requisites for Escalation Clause in a Contract of Loan:
o When the increase/decrease is dependent on valid and reasonable standards Offer through an Agent
o De-escalation clause • Offer made through an agent; buyer can also buy through an agent
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• Acceptance communicated to an Agent = Acceptance communicated to Principal • Incapacity [Vitiated; Voidable]
o Absolute Incapacity: The party cannot give consent in any contract, with
Ineffectivity of an Offer anyone, in whatever capacity, over anything
• When Offer Becomes Ineffective: Death, Civil Interdiction, Insanity or Insolvency o Relative Incapacity: A person may be prohibited from entering specific
• Requisite: Happens before acceptance is received/conveyed contracts or that in a contract, he may be prohibited in a certain capacity
• Given Bilaterally by 2 or more Incapacitated persons [Unenforceable]
Option Contract
• General Rule: Offer may be withdrawn any time before acceptance Situations Concerning Consent of the Parties (CAU)
o How Done: Communicating Withdrawal • Fictitious Contracts: Where one of the parties did not actually gave his consent
• Exception: Option is founded upon a consideration o Example: A party's signature in a deed of sale is forged
o Consideration = Something Paid or promise • Simulated Contracts: Where the parties would make it appear that they entered into a
contract when in fact they did not
3 Types of Options (As applied to a Contract of Sale) • Absolutely Simulated Contracts: They did not intend to be bound by the contract or
• Put: The holder of the option, has a right to compel the other party to conclude the any contract for that matter (Usually to defraud someone)
transaction • Relatively Simulated Contracts: The parties intended another contract
• Call: The holder can force the other party, to “put” the thing and he will buy it o Validity: Valid if it does not prejudice an third person + not intended for any
• Put and Call (Straddle): Both rights may be given to one party, or both parties purpose contrary to law, morals, good customs, or public policy or public order
(individually or separately) o Proof of relatively simulated sale: Capacity of the buyer to buy
§ If he does not have capacity to buy, it would be proof of simulation
Real Contracts
• Depositum Contract of Adhesion
• Pledge • One where there is already a prepared form containing the stipulations desired by one
• Commodatum party whereby the latter only asks the other party to agree to them if he wants to enter
• Mutuum into a contract
• General Rule: Valid; because a party who does not consent to the terms and conditions
Consent in Contracts in the contract can opt not to
• General Rule: No one may contract in the name of another person • Exception: If a waiver is contained in a contract of adhesion, the contract is void,
• Exception: Authorized by that person or has a right to represent him under law
Object of the Contract
Requisites of Valid Consent • Object: Is the subject matter of a contract which may not necessarily be a thing, it may
• Free: Freely given; no constraints; free exercise of ones will be rights or service
• Intelligent • Basic Requirements:
• Spontaneous: Natural reaction to a stimulus o Rights: Must not be intransmissible
o Services: Not contrary to law, morals, good customs, public order or public
Who Can’t Give Consent policy;
• Unemancipated Minors o Things: Must not be outside of commerce of men, it must be licit and not
impossible
• Insane or Demented person
o Insane: Needs psychiatrist; needs psychiatrist
Object; Determinate as to Kind
o Demented: Not insane; impairment of neurons;
§ Example: People who are in advanced age; Dementia • Requisite: Object of a Contract must be determinate as to its kind
• Deaf-mutes who do not know how to write • Qualification: Indeterminate object does not mean inexistence of contract
o Requisite: Possible to determine without need of a new contract
Effects of Defective Consent
• Non-Existent Consent [Void]
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Cause of Contracts Importance Of Classification As To Perfection: If the contract is consensual, it
• Onerous Contracts: There is reference to the contracting parties; the cause is is perfected by mere consent; if real, by delivery; if formal; upon compliance with
understood to be “for each contracting party” the required form
o Prestation or promise of a thing or service by the other According to Any Form
Solemnity
• Remuneratory Contract: Service or benefit to be renumerated Special Form
• Gratuitous Contract: The liberality of the person As to Transfer of Ownership (Sale, Donation, Barter or Exchange)
Purpose
Motive Conveyance of Use (Usufruct, Lease, Loan)
• General Rule: Does not affect the validity of a contract since motive is different from
cause and the illegality of motive does not affect the validity of the contract. Rendition of Service (Lease of Services, Agency)
• Exception: If it predominates the purpose of the party to enter into a contract As to Nature Bilateral: Where both parties are reciprocally obligated
of Obligation Example: Lease (where the lessor is obliged to allow the use of the thing and the
Produced lessee is obliged to pay rent); Sale (where the buyer is obliged to pay the price and
False Cause the seller obliged to deliver the thing)
• General Rule: Statement of a False Cause renders them void
• Exception: Proved that they were founded upon another cause which is true and lawful Unilateral: Only one party is obliged
Example: Guaranty and Pledge
Presumption of Existence of a Cause
• Presumed to exist + Presumed cause is lawful Importance of Classification
Fruits: In conditional obligations, who would be entitled to the fruits before the
happening of the suspensive condition?
Inadequacy and Red Flags - Bilateral: The fruits are deemed mutually compensated under Art. 1187
• General Rule: Lesion or Inadequacy of cause will not invalidate a contract - Unilateral: The fruits shall pertain to the debtor unless a contrary intention is
• Exception: There is Fraud, Mistake or Undue Influence clear

Classification of Contracts Rescission: Under Art. 1191, is implied in reciprocal obligations, or in this case,
bilateral contracts where both are reciprocally obligated
Classification of Contracts - But if the contract is unilateral, logically, the creditor would not rescind, he
Bilateral: Both parties are obliged (reciprocal obligations arose from the contract) would either demand performance or seek damages

Unilateral: Only one of the parties is obliged
According to Principal: Can stand on their own and do not depend on any other contract for
Degree of their existence or validity
Dependence
Accessory: Those which cannot stand on its own and are dependent upon other
contracts for its validity
Example: Guaranty, Suretyship, Mortgage and Antichresis
As to Consensual: Perfected by mere consent or “upon the meeting of the minds as to
Perfection the object or the cause” (CAU: Mas magnda yung huli)
Real: Those which are perfected only upon delivery of the thing subject of the
contract
- Examples: Deposit, Pledge, Commodatum and Mutuum
Formal: Those which require a certain form for its validity
- Validity and not just enforceability
- Example: Antichresis, Sale of Large Cattle (Public Instrument)
Delay: In reciprocal obligations (bilateral contracts), from the moment one of the
parties had already complied and the other did not, the latter shall be considered in
delay even if there is no demand
According to Onerous
Cause • Example: Essential Onerous— Sale or Lease
Gratuitous/Lucrative
• Example: Essential Gratuitous; Commodatum
Middle Ground (may be Onerous or Gratuitous): Agency; Deposit
Remuneratory
Importance of Classification
Presumption that the transfer of ownership is in fraud of creditors: A sold his
only property to B. At the time of sale, he was indebted to X. In this case, it may
not necessarily be in fraud of X, since the sale may have been precisely to have
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the proceeds delivered to X for payment. Would there be such presumption? It
depends—
- Onerous: If there is already a judgment against A as to his liability to X and
the transfer is onerous, such as this one (a sale), there is a presumption that
the transfer of ownership is in fraud of creditors.
- Gratuitous: It would depend on the remaining amount of property, such that
if A donated his property to B worth P3M, the presumption would arise only if
A did not reserve sufficient properties to cover his debts
Contracts of Agency: Agent committed fraud or caused damage to the principal
because of negligence, is the agent liable?
- The agent is liable but his liability may be mitigated if the agency is gratuitous
(Art. 1909)
Interpretation of contracts: A obliged to deliver a car to B and upon delivery, B
noticed that the car stereo was missing. B asked for the stereo but A claims that he
is the owner thereof. Who is entitled to the stereo? It depends—
- Gratuitous: Such as a donation, the principle that would apply is the least
transmission of rights, such that the donor would be entitled to the stereo
- Onerous: Such as a sale, the principle that would apply is the greatest
reciprocity of interests, such that the buyer would be entitled to the stereo
NOTE: The above principles would be applicable only on secondary matters of the
contract. Such that if the ambiguity pertains to the principal prestation, such as the
car in this case, then the contract would be void
According to Commutative
Risk
Aleatory: One of the parties or both reciprocally bind themselves to give or to do
something in consideration of what the other shall give or do upon the happening
of an event which is uncertain, or which is to occur at an indeterminate time
According to Nominate
Name
Innominate
Preparatory
According to Thing
Subject Right
Matter Service
Form of Contracts
Rule on Form of Contracts
• Obligatory in whatever form they may have been entered into
• Qualification: All essential requisites for their validity are present
• Exception: Law requires that a contract be in some form in order that it may be valid or
enforceable, or that a contract be proved in a certain way
o Requirement is absolute and indispensable
When a Specific Form is Required
• Validity—Formal contracts; non-compliance will make it void
• Enforceability—maintain an action for specific performance; non-compliance means not
action for specific performance (unenforceable)
• To bind Third Persons—you did not comply with the form, the other party can compel
you to execute the proper form
Contracts Requiring Specific Form for Validity
• Negotiable instruments – must be in writing
• Donations of personal property more than P5,000 – must be in writing;
• Donations of real property – must be in a public instrument;
• Interests on loan – must be stipulated in writing, otherwise they are not due;
• Principal and interests in antichresis – must be specified in writing, otherwise the
contract is void.
• Sale and transfer of large cattle – under the Cattle Registration Act, the same must be
registered and a certificate of transfer must be issued + public instrument
• Chattel mortgage – requires registration
• Contract of partnership where real property or real rights are contributed – must be
in a public instrument with an inventory attached
Contracts Required to be in a Public Document for Greater Efficacy
• Creation, transmission, modification or extinguishment of real rights over immovable
property
• Sale of real property or an interest therein
• Cession, repudiation or renunciation of hereditary rights or those of the CPG
• Power to administer property or any other power which has for its object an act appearing
or which should appear in a public document, or should prejudice a 3rd person
• Cession of actions or rights proceeding from an act appearing in a public document
• Qualification: All other contracts where amount > PHP 500
o Form: Written form (Public or Private)
Reformation of Contracts
Requisites for Reformation of Contract
• Meeting of the minds
• Intention is not expressed in the instrument purporting to embody the agreement
• Non-expression or misexpression is by reason of mistake, fraud, inequitable conduct or
accident
• No action brought to enforce contract (Estoppel)
When Reformation Unavailable
• Simple Donation Inter Vivos
• Will
• Real agreement is Void
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2. In the name of another by one who has no General Rule: Unenforceable
Equitable Mortgage authority or legal representation, or who has Exception: Ratified before revoked by
• 2 parties agree on a mortgage/pledge of real or personal property acted beyond his powers other contracting party
o Instrument states property is sold absolutely or with right of repurchase
• Remedy: Reformation of the instrument is proper Rescissible Contracts
Resicission
Instances Presumed to be an Equitable Mortgage • Remedy in equity
• Price unusually inadequate • Validly agreed upon contract, where neither party is in default or at fault, but leads to
• Possession retained by the seller as lessee or otherwise some economic damage
• Period of redemption extended (or granted anew) upon or after the expiration of the right • Scope: Valid, Voidable or Unenforceable Contracts
to repurchase • Effects of Rescission:
• Part of the purchase price retained by the seller o In Fraud of Creditors: Only to exten necessary to cover damages
• Payment of taxes on the thing sold borne by the seller o Grounds under Art. 1385: Restitution
• Any other case where it may be fairly inferred that the Real intention of the parties for the
Reuqisites for Rescission
transaction to secure a debt or other obligation
• Valid, Voidable or Unenforceable Contract
• Requisites for Presumption to Arise:
o Parties entered into a contract denominated as a Contract of Sale • Valid Ground for Rescission
o Intention was to secure an existing debt by way of a mortgage • Party must have no other legal means to obtain reparation (Last Resort)
• Things which are the object of the contract are not legally in the possession of 33rd
Defective Contracts persons in good faith
• Brought within 4 years
Void à Unenforceableà Voidable à Rescissible à Valid o Qualification: If under guardianship/Absentee— Counted from termination of
incapacity or until domicile of latter is known
No Consent Given
Fictitious Gemera; Rule: Void Grounds for Rescission
Simulated Qualification: Relatively Simulated valid • Entered into by guardians whenever the wards whom they represent suffer lesion
1. Absolutely Simulated if— o Requisite: More than 1/4th of the value of the things which are the object
2. Relatively Simulated • Founded on a real (hidden) o Exception: Contract approved by court
agreement • Agreed upon in representation of absentees
• Does not prejudice 3rd persons
o Requisite: Suffer the by more than 1/4th of the value of the object
• Not contrary to law
o Exception: Contract approved by court
Consent Was Given
By an Incapacitated Person
• Undertaken in fraud of creditors when the latter cannot in any other manner collect the
claims due them (Accion Pauliana)
1. Absolute Incapacity o Badges of Fraud
a. Without juridical capacity Void § Property of debtor at a grossly inadequate price
§ Relation of parties
b. With restrictions to capacity to act • Father selling property to the son/son-in-law
i. Only one of the parties Voidable § Seller remains in possession of property
§ Insolvent debtor and sold the property on credit
ii. Both parties Unenforceable
o Presumptions of Fraud (Art. 1387)
2. Relative Incapacity Void § Onerous alienation + At time of the sale there had already been a
By one with capacity judgment against him or garnishment against him
• Qualification: Need not have been obtained by the party
1. Vitiated Voidable seeking rescission
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§ Gratuitous alienation + Wuthout leaving sufficient properties to pay - Rescissible only if there is damage or - Voidable even without damage or
his debts (accruing before donation) prejudice prejudice
• Refer to things under litigation if they have been entered into by the defendant - Rescissible is based on equity - Annullability is based on law
o Requisite: Without the knowledge and approval of— (Alternatives) - May not be ratified - May be ratified
§ Litigants - May be invoked either by a contracting - May be invoked only by a
§ Competent judicial authority party or by a third person who is contracting party
• All other contracts specially declared by law to be subject to rescission prejudiced - Matter of public interest (Public
• Payments made in a state of insolvency (Art. 1382) - Matter of private interest (Fairness) Policy)
o Requisite: For obligations which are not yet due and demandable at time of
payment Vitiations of Consent
• Mistake
Remedy Against Transferee in Bad Faith • Violence: Serious or irresistible force
• Remedy: Rescission + Damages • Intimidation: One of the contracting parties is compelled by a reasonable and well-
• Creditors indemnified for damages suffere don account of the alienation grounded fear of an imminent and grave evil upon his person or property, or upon the
• Requisite: Impossible to return them person or property of his spouse, descendants or ascendants, to give his consent
• Qualification: First acquirer shall be first liable and so on (2 or more alienations) o Requisites:
• Only provision that couples Rescission with damages § Reasonable and well-grounded fear
§ Fear of an imminent and grave evil
Article Kind Threshold § Upon his person/property or upon the person/property of his spouse,
Article 1381 Lesion (Contract Law) More than 1/4th descendants/ascendants
Article 1382 Payment during Insolvency • Undue Influence
(Contract Law) o Test: When you subjugate the will of one person, so that he now speaks/acts
Article 1098 At least 1/4th not on his own free will, but his actions or his words reflect yours
Succession • Fraud
[Par. 5, Art. 1381] o Requisites:
Article 1539 At least 1/10th § Employed by one against another + not employed by both parties
Sale of Real Estate (Per Sq. § Fraud must lead to the consent
Meter) • If it has nothing to do with the consent, it does not vitiate
[Par. 5, Art. 1381]
Article 1542 At least 1/10th consent
Sale of Real Estate § Fraud must be serious
(Lump Sum) § Not incidental fraud
[Par. 5, Art. 1381]
Article 1381 Lesion (Contract Law) More than 1/4th § Vitiates only if it causes damage
• Even if you were defrauded, without damage, there is no
Voidable Contracts vice of consent

Voidable Contracts When Mistake Vitiates Consent (Alternatives)

• Either party is incapable of giving consent • Refer to the substance of the thing which is the object of the contract
• Consent is vitiated by Mistake, Violence, Intimidation, Undue Influence or Fraud • Those conditions which have principally moved one or both parties to enter into the
contract
Rescissible Voidable • Mistake as to identity or qualifications of the parties
- External defect as it consists of damage or - Defect is intrinsic because it o Requisite: When they have been the principal cause of the contract
prejudice either to one of the contracting consists of a vice which vitiates • General Requisite: Mistake must be Mutual
parties or a third person consent
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Disclosure of Facts • How Done: Express or Implied
• General Rule: Failure to disclose facts does not constitute Fraud • Who May Ratify
• Exception: There is a duty to reveal them (i.e, Confidential Relations) o Vice of Consent: Person whose consent was vitiated
o Incapacity:
§ Period of Incapacity— Guardian
Sales Talk § After acquiring Capacity—only the person himself
• General Rule: Usual exaggerations in trade is not fraudulent • Effects of Ratification (Confirmation): Cleanses the contract from all defects +
• Qualification: Other party had an opportunity to know the facts Retroactive effect—to the moment it was constituted

Opinion Who May Institute Action for Annulment

• General Rule: Expression of opinion is not fraud • Who Can File: All those obliged principally or subsidiarily
• Exception: Opinion is made by an expert • Who Cannot File: Person who caused vitiation or abused incapacity cannot file the
o Requisite: Other party relied on special knowledge action
Third Person Misrepresentation
• No fraud; you can’t be defrauded by a third person who is not a contracting party Effect of Annulement of Voidable Contract— Restitution
• But if the misrepresentation created a substantial mistake, and the same is mutual there • General Rule: Restore to each other the subject matter of the contract
is a vice of consent o Qualification: Value of service = Basis of Damages
o Includes: Their fruits + price with interest
Type of Vitiation Element of Valid Consent • Exception: Cases provided by law
Violence
Intimidation Free Extent of Restitution (Incapacitated)
Undue Influence • General Rule: Incapacitated person need not restitute
Mistake Intelligent • Exception: Insofar as he has been benefitted by the thing or price received by him
Fraud Spontaneous
When Person Obliged Can’t Restitute
Defenses in Actions for Voidability • Person obliged to restitute can’t return because it has been lost through his fault
• Confirmation (Ratification) • Effect: Return the fruits received + value of the thing at the time of the loss
• Estoppel o With interest from the time of loss
• Prescription
• Plaintiff not the property party in an action for annulment When Action Can’t Prosper
• Other person cannot return what he received from the other party through his fault • Object of contract has been lost through the fraud or fault of the Plaintiff
• Qualification: Incapacitated person will not be barred from filing an action to annul
Prescriptive Period o Exception: Loss took pace through the fraud/fault of the Plaintiff
• Period: 4 years
• Reckoning Point: Unenforceable Contracts
o Intimidation, Violence or Undue Influence: From the time the defect of the
consent ceases 3 Classes of Unenforcable Contracts
o Mistake or Fraud: From the time of the discovery of the same • Unauthorized or Acted Beyond Scope of Authority
o Minors or Incapacitated Person: From the time the guardianship ceases • Violated the Statute of Frauds
• Contacts between Incapacitated Persons
Cleansing of Effects [Ratification]
• Ratification extinguishes action to annul Effects of Unenforceability
• Proper term to use is Confirmation • Exclusively a matter of defense
• Confirmation is different from Ratification o Qualification: May not be raised by a stranger to the contract
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• Covers only purely executory contracts Void or Inexistent Contracts
• May still compel the other party to reduce the document into its proper form
Void and Inexistent Contracts
Unenforceable Contracts • Cause, object or purpose is contrary to law, morals, good customs, public order or public
• Unauthorized Contracts policy
o Those entered into in the name of another person by one who has been given • Absolutely simulated or fictitious
no authority or legal representation, or who has acted beyond his powers • Cause or object did not exist at the time of the transaction
• Contracts Between Incapacitated Persons • Object is outside the commerce of men
• Statutes of Fraud • Contemplate an impossible service
o Requirements of Statute of Fraud • Intention of the parties relative to the principal object of the contract cannot be
§ Contract must be in writing ascertained
§ Must be subscribed; signed • Expressly prohibited or declared void by law
§ Effect of Non Compliance: Evidence of the agreement cannot be
received without the writing or secondary evidence of its contempt Void Contracts
o Special Promise or Undertaking to answer for the debt, default, or miscarriage • Character of Void Contract: Can’t be ratified
of another (e.g Guarantor) • Right to set up defense of illegality cannot be waived
o Agreement that by its terms is not to be performed within a year from the • Prescriptive Period: No prescriptive period
making thereof (e.g, Forward Contracts) • 3rd person cannot raise the defense of illegality of contract
o Agreement made in consideration of marriage, other than mutual promise to o Exception: Interest is directly affected
marry
• Note: If you can’t point at a law that says a contract is void, please don’t say it is
o Agreement of sale of goods, chattels or things in action (Personal Property)
• Separability: If the entire contract is not void, but only portions thereof, and you can
§ Price is > PHP 500
segregate the bad part form the good part—amputate the bad part, throw it away and
§ Exception: Buyer accept/receive part of goods, or the evidences, or
keep the good part
some of them, or pay at the time some part of purchase money
§ Qualification: Sale via auction + entry made by auctioneer =
7 Void Contracts Simplified:
Sufficient Memorandum
1. Absence of an Essential Requisite: Consent, Object, Consideration
o Leasing for a period longer period than one year, or for the sale of real property
a. Absolutely no consent, as in absolutely simulated contracts = void
or of an interest therein
b. If there is no object, or unlawful or impossible or prohibited by law = void
• General Requisite: Covers only purely executory contracts c. No consideration, as in absolutely simulated contracts, immoral consideration
• General Exception: Ratification or illegal or against public policy= void
o How Ratification Done: 2. Can’t determine the intention of the parties
§ Express 3. Nullity expressly provided by law
§ Failure to object to the presentation of oral evidence to prove the
contract Other Some Void Contracts
§ Acceptance of benefits • Pactum Commisorium: Upon default of the debto in a contract of pledge or mortgage,
the property pledgeed or mortgaged would automatically belong to the pledgee or
Transfiguration of Contract mortgagee
• What: Both Parties Incapacitated to Give Consent • Pactum de non alienado: Stipulation in a contract of real estate mortgage which
o Parent/Guardian can expressly or impliedly ratify prohibits the mortgagor from alienating the property mortgaged without the consent of the
• Effect: As if only of them were incapacitated (Voidable) mortgagee
• Qualification: Both parents/guardians ratify • Pactum Leonina: Stipulation in a contract of partnership which excludes one or some of
o Effect: Validated from inception (Valid) the partners from sharing in the profits
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Void Rescissible § Exceptions: Parties may still recover (Art. 1411, 1412, 1414, 1415,
Defect is inherent There is no defect, but it has adverse 1416)
economic damage • Qualification: If void because of failure to comply with the form prescribed by law, the
Voidness a matter of law and public interest Matter of equity and private interest parties may recover
because it causes economic damage
No need to file an action to declare its It exists until you rescind Usurious Interest
nullity; it does not exist • Interest stated is usurious
No prescription 4 years • Effect: Whole amount of interest returned
o No more limit on interest rates
Void Unenforceable
Inexistent Exists Remedy Repudiating Party
Can’t be enforced Can’t be enforced; but such may be waived • Money Paid/Property Delivered for an illegal purpose + 1 Party repudiates
(failure to object timely to presentation of o Requisite: Repudiates before purpose accomplished or before damage
Oral evidence) caused to 3rd person
Can’t be ratified Ratifiable • Option of Court: Allow repudiating party to recover money/property
o Requisite: Public interest will be subserved
Void Voidable
Essential element missing Vice of Consent or Incapacity Protection of an Incompetent Person
Inexistent Valid until annulled • When Applicable: 1 Party to an illegal contract is incapacitated to give consent
May be asserted against anyone Asserted only be one of the contracting • Option of Court: Allow recovery of money/property
parties o Requisite: Interest of justice so demands
Can never be ratified Can be Confirmed
Imprescriptable 4 years Prohibited Agreements
• When Applicable: Agreement not illegal + merely prohibited
Object from Criminal Offense o Requisite: Prohibition designed to protect the plaintiff
• When Applicable: Illegal Cause/Object + Act constitutes a Crime • Effect: Plaintiff may recover what he has paid/delivered
• Requisite: Both parties in Pari delicto o Requisite: Public policy will be enhanced
• Effect: No action against each other + both prosecuted
Resolution of Contracts Rescission of Contracts
• Qualification: Innocent party may claim what he has given
(Art. 1191) (Art. 1381)
o Not bound to comply with his promise
Who may Party to a Contract Party to the contract
File
Unlawful or Forbidden Cause
3rd persons
• When Applicable: Unlawful/Forbidden Cause + Not a Crime
Cause Failure of one of the parties to 1. Lesion
• Effect: comply with what is incumbent on 2. In Fraud of Creditors
o If only 1 party at fault— Erring party can’t recover what he has given by him 3. Things under Litigation without
reason of the contract nor ask for fulfillment of what was promised to him consent
§ Remedy of Innocent Party: Demand return of what he has given
4. Others provided by law
• No obligation to comply with his promise Power of 1. Order Fulfillment + Damages Rescind Contract
o In Pari delicto rule— Court 2. Order Rescission +
§ General Rule: Neither may recover what he has given by virtue of Damages No power to fix a period (Extension)
the contract, or demand the performance of the other’s undertaking 3. Fix a Period (Extension)
• This rule is applicable only to contracts that are void Covered Reciprocal Contracts only Unilateral or Reciprocal
because its object or cause are contrary to law, morals etc. Contracts Valid, Voidable or Unenforceable
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LOAN Ownership of Thing
• Bailor retains the ownership of the thing loaned
Definition o Qualification: Need not be the owner of the thing
• Contract where one party delivers to another with something not consumable or so that • Bailor need not be the owner of the thing loaned
the latter may use the same for a certain time and return it, or money or other
consumable thing Use by Bailee
o Upon the condition that the same amount of the same kind and quality shall be • Acquires the use of the thing but not its fruits
paid • Purely personal
• Always arises from a contract—a real contract which is perfected only upon the delivery o Can’t lend or lease the object of the contract to a third person
of the object of the contract § Exception: Members of the Bailee’s household
• A contract of permissive use § Exception to this Exception:
• Contrary stipulation
Credit Card Transactions—3 Contracts • Nature of the thing forbids such use
• Sales contract (CC Holder and Merchant)
• Loan agreement (CC Holder and Issuer) Extinguishment of Commodatum
• Promise to Pay (Issuer and Merchant) • Death of Bailor or Bailee
• Each Credit Card transaction is considered a separate offer and acceptance • Expiration of Term agreed upon
• Accomplishment of the use for which constituted
Commodatum • Other applicable modes of extinguishing obligations

Commodatum Liability for Expenses and Damages

• Gratuitous lending of goods to be used by the borrower and then return them undamaged • Ordinary Expenses for its use and preservation
to the lender o Who Pays: Bailee
• Use for a certain time and return it • Deterioration of the property loaned due only to the use thereof and without his fault
o Who Pays: Bailor
Characteristics of Commodatum • Extraordinary expenses—
• Non-Consumable o For preservation of the property loaned
• Debtor obliged to return § Who Pays: Bailee + Subject to Refund by Bailor
• Purpose: Permissive use of the property for a certain time • Requisite: Bailee must inform Bailor before incurring the
• Creditor retains ownership expense
• Reciprocal obligation—promise of the debtor is to pay the consideration for the obligation o Exception: Situation is urgent that reply to
of the creditor to furnish the loan Notification can’t be awaited without danger
• Consideration: Gratuitous • Effect of Non-Compliance: Bailee liable
• May be a Consumable thing but only for exhibition o On occasion of the actual use of the thing—
• Consequent Obligation: Return the object § Who Pays: Bailor and Bailee are equally liable
• Personal or real property (must be written, if not only binding between 2 parties) • Exception: Otherwise stipulated
• Other Expenses—those which are not listed in Article 1941-1949
Object • Abandonment: Bailor can’t exempt himself from liability for the expenses or damages by
• Movable or Immovable property abandoning his property
• Real or Personal Property
• Non-Consumable Liability for Loss
o Qualification: If Consumable— Must be for exhibition only • General Rule: Bailee not liable for loss if through Fortuitous Event
• Purpose of the contract must not be the consumption of the thing o Bailor bares the loss if through Fortuitous Event since he retains ownership
• Exhibition = Accommodation • Exceptions:
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o Devotes ting to a different purpose than that for which it was loaned • Debtor obtains ownership
o Keeps it longer than the period stipulated • Reciprocal obligation—promise of the debtor is to pay the consideration for the obligation
o Thing is delivered with appraisal of its value (unless there is stipulation of the creditor to furnish the loan
exempting bailee from responsibility) • Consideration: Gratuitous or with stipulation to pay to pay interest
o Lends or leases the thing to third person (except members of his household) • Consequent Obligation: Payment
o Chooses to save his thing rather than the thing borrowed • Personal Property
Obligation to Return Object
• Primary obligation is to return • The Borrower acquires ownership of the money or consumable property for the
• When Returned: permissive use of the property
o Period has expired o Borrower can dispose of the property loaned (this is not misappropriation)
o Purpose has been accomplished • Consumable property and its use will generally result in its extinguishment
o Urgent need or temporary use • Why the obligation of the borrower in a simple loan is to pay an equal amount of the
§ Effect of Temporary Return: Commodatum is suspended same kind and quality
o Bailee commits an Act of Ingratitude • Fungible Property: Property commercially interchangeable with other property of the
§ Note: Return at any time
same kind, or goods of which any unit is from its nature by mercantile custom, treated as
• Precarium: Where Bailor may demand the property loaned at will— the equivalent of any other unit
o Period/Purpose not stipulated
o Use is merely tolerated Consideration
• Whether the object is money or other consumable thing
Acts of Ingratitude
• May be gratuitous or onerous
• Bailee commits some offense against he person, honor or property of the Bailor or the
• Onerous: Compensation to be paid by the borrower is referred to as Conventional
latter’s wife or children under parental authority
interest
• Imputes to the bailor any criminal offense or any act involving moral turpitude
o It is the interest agreed to by the parties themselves as distinguished from the
• Unduly refuses the bailor support when legal or morally bound to give support to the prescribed by law
bailor
Evidence of Indebtedness
Right of Retention • Note: written promise by one party to payment money to another party or to bearer, or a
• General Rule: Bailee can’t retain thing even Bailor owes him something written promise to pay a specified amount to a certain person on demand or on a
o There is no right of retention specified date
o Remedy of Bailee: Demand payment for the expenses + damages incurred • Bond: Written promise to pay money to the holder or a written promise, issued by a
• Exception: When the bailor does not disclose a defect that causes damage to the Bailee government or corporation to holders, to pay the principal amount of a loan at maturity
and a specified sum of money usually at specific intervals
Mutuum • Debenture: Instrument acknowledging a debt secured only by the issuer’s earning power
and not by a lien, or legal right or interest that a creditor has, on any specific asset, or an
Mutuum (Simple Loan) unsecured bond
• Creditor delivers to the debtor (Borrower) money or other consumable property upon the
condition that the same amount of the same kind and quality shall be paid Interest
• Purpose is still the permissive use of the money or consumable property
Interest
Characteristics of Mutuum • Kinds of Interest: Conventional and Compensatory interest
• Consumable • Right to interest arises only by virtue of a contract or by virtue of damages for delay or
• Debtor obliged to pay failure to pay the principal loan on which interest is demanded
• Purpose: Permissive use of the property by the debtor by taking ownership
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INTEREST Monetary Interest (Regular Interest)
• It may be gratuitous or onerous • Conventional interest in a simple loan of money
o If Onerousà Conventional Interest • Payment of both principal and interest is made in money gradually extinguishing the loan
• Conventional Interest of money
o Interest agreed upon by the parties • “Cost of Money” for its use or forbearance
o Any modifications must be with mutual consent • Until the principal sum due is returned to the creditor, regular interest continues to accrue
• Elements for Conventional Interest since the debtor continues to use the principal amount
o Express stipulation for the payment of interest
o Stipulation is in writing Escalation Clauses
• If no Stipulation and borrower paid? • Generally valid unless they contravene public policy
o Paid by mistake—creditor returns • Nothing inherently wrong with escalation clause
o Voluntary—creditor authorized to retain • Widely used in long-term commercial contracts as a means of maintaining fiscal stability
and retaining the real cost of money
How do you use the interest? • Valid stipulations to maintain fiscal stability and to retain the value of money in long term
• If rate is stipulated, follow the stipulation contracts
• No stipulation as to the specific rate, but there is stipulation that there shall be interest, • Rate of interest is a principal condition, if not the most important component
use legal interest o Any modification thereof must be mutually agreed upon
• Legal Rate
o 6% (After Jul 1, 2013) Guidelines to Escalation Clauses
o 12% (Before Jul 1, 2013) • Escalation clauses must be paired with de-escalation clauses
• Escalation must be pegged to prevailing market rates
Conventional Interest • Proposed modification must be the result of an agreement between the parties
• Onerous simple loan o Against mutuality of contracts
• Compensation to be paid by the borrower is the Conventional Interest o An Escalation clause which grants the creditor an unbridled right to adjust the
• Result of the express will of the parties in a contract interest independently and upwardly, completely depriving the debtor of the
o Payment of the interest is principal condition right to assent to an important modification in the agreement is void
o Any modification must be with mutual consent o Borrower’s assent to the increases cannot be implied from their lack of
• Such interest continues to run from the date stipulated with no break in the continuity of response to a letter sent by the bank informing them of the increase
the obligation to pay it § An appropriate form must be signed by the borrower’s indication to
• Payable in money (Stated amount or may be a computed amount based on an interest their conformity to the new rates
rate) or in kind (Appraised at time of payment) o If the contract states that the interest rate should be based on the prevailing
• Elements: market rate, that does not necessarily mean that it would run counter to the rule
o Express stipulation for the payment of interest on escalation clause
o Stipulation for the payment is in writing
• Types: Annulment of Escalation Clause
o Monetary Interest • Principal amount shall be subject to the original or stipulated interest rate
o Interest on Interest o And then upon maturity, the amount due shall be subject to legal interest
o Compensatory • Only the rates are found to be improper but not the imposition of interest rates

No Stipulation and Borrower Paid INTEREST ON INTEREST

• Borrower paid through mistake, the creditor is obliged to return what was delivered
(Quasi Contract) • For Conventional Interest
• Borrower voluntarily paid the creditor, and the latter is authorized to retain what was • General Rule: interest is paid on the principal only
delivered (Natural Obligation) o Interest on Interest is Generally not demandable
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When is Interest on Interest Demandable
• There must first be conventional interest to be paid in a contract of loan
• Any of the following instances are applicable
o Stipulation of the parties re compounding of interest
o There is interest that is due and unpaid
§ And payment for such interest is judicially demanded (from date of
filing of a complaint in court)
• Rate of interest shall be the legal rate applicable to loans or forbearance of money
COMPENSATORY INTEREST
• Also called penalty interest, indemnity or monetary interest
• The indemnity for damages arising from delay on the part of the debtor in an obligation
consisting in the payment of a sum of money
o Interest allowed by law in the absence of a promise to pay, as compensation
for delay in paying a fixed sum or a delay in assessing and paying damages
When Is it Demandable
• Always demandable in case the borrower in a simple loan of money incurs in delay
o Not every simple loan is an obligation that consists in the payment of a sum of
money
§ Happens when payment is in kind
Q: IF the debtor in a contract were not in delay, what should it be held liable for in accordance
with law?
• Debtor not in delay is properly liable only for the principal of the loan and conventional
interest
o Even if the debtor is not liable for compensatory interest, it does not relieve the
party from the payment of Conventional Interest
o Conventional Interest continues to accrue under the terms of the loan until
actual payment is effected
• If debtor were in delay then compensatory interest as a matter of law, will accrue in
addition to Conventional Interest
Forms of Compensatory Interest
• Parties may stipulate on compensatory interest through a Penal Clause
o Penal Clause: an accessory obligation of the debtor to assume greater liability
in case of breach of a principal obligation
§ Strengthens the coercive force and provides for liquidated damages
o May be equitably reduced by the courts it is iniquitous or unconscionable or if
the principal obligation has been partly or irregularly complied with
o May even be deleted if
§ There has been substantial performance in good faith by the obligor
§ Penalty clause itself suffers from fatal infirmity
§ Exceptional Circumstances so exist as to warrant it
• Payment of the penalty + interest may be demanded if there is stipulation to the same
• Until the principal sum is due and is returned to the creditor, conventional interest
continues to accrue
• If the debtor is in delay, compensatory interest, as a matter of law will accrue in addition
to conventional interest
INTEREST RATE
• Interest rate of 6% provided by the Usury Law applies to:
o Loan of money, goods or credits (Simple Loan or Mutuum)
o Forbearance of money, goods, or credits, even if the principal obligation or
agreement is not a simple loan
§ Forbearance: the act of refraining, tolerating or abstaining from
enforcing a right or obligation; arrangements other than loan
agreements, where a person acquiesces to the temporary use of his
money, goods or credits pending happening of certain events or
fulfillment of certain conditions
o Rate allowed in judgments
• Interest may be imposed even in the absence of stipulation in the contract
Rules on Rate of Compensatory Interest (Eastern Shipping Lines v Court of Appeals)
• Rules enunciated in this case refer to compensatory interest and not conventional
• When an obligation, regardless of its source, is breached, the contravenor can be held
liable for damages
• Award of interest in the concept of Actual And Compensatory Damages:
o Obligation is breached and it consists in the payment of a sum of money
§ Interest due should be that which may have been stipulated in writing
• Interest due shall itself earn legal interest from the time it is
judicially demanded
§ No stipulation, the rate of interest shall be 6% per annum to be
computed from default
• Judicial or extra-judicial demand
o Obligation not constituting a loan or forbearance of money is breached
§ Interest on the amount of damages awarded may be imposed, at 6%
per annum
§ No interest shall be applied to unliquidated claims or damages,
except when or until the demand can be established with reasonable
certainty
• If demand is established with reasonable certainty, interest
shall begin to run from the time the claim is made judicially
or extrajudicially
• If certainty cannot be reasonably established at the time
the demand is made, the interest shall begin to run only
from the date the judgment of the court is made
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o This is when the quantification of damages may
be deemed to have been reasonably ascertained
o When the judgment of the court awarding a sum of money becomes final and
executory
§ Whether the case falls under Par. 1 or Par. 2
• Apply 6% per annum from finality until satisfaction
§ Interim period from finality to satisfaction/payment shall be
considered as forbearance of credit/money
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MORTGAGE
Pledge and Mortgage
Definition
• Secured transaction constituted to secure the fulfillment of a principal obligation
• Contract of Real Security
o Property pledged/mortgaged may be alienated for purposes of payment to the
creditor of the principal obligation
• Pledgor/Mortgagor must be the absolute owner of the collateral
Requisites
• They be constituted to secure the fulfillment of a principal obligation
• That the pledgor or mortgagor be the absolute owner of the thing pledged/mortgaged
o A third party may secure the obligation by pledging or mortgaging his own
property
• Persons constituting the pledge or mortgage have the free disposal of their property or
legally authorized to do so
o Free disposal or legally authorized to constitute the pledge/mortgage
o If not, the mortgage/pledge is void – even if it concerns future property
Rights and Obligations
• Pledgor/Mortgagor remains to be the owner of the collateral
• Considered as a lien but does not pass ownership to the creditor
o The delivery is only to secure payment
Obligations Secured
• An accessory obligation to a valid, voidable or unenforceable contract
• Whether such be pure, conditional, suspensive or resolutory
Contract to Pledge or Mortgage
• Preparatory Contract
• Gives rise to personal action between the contracting parties
• Without prejudice to criminal liability
o Offered as unencumbered but with knowledge of an otherwise truth
Remedies of Pledgee or Mortgagee
• Foreclosure: legal proceeding to terminate a pledgor’s or mortgagor’s interest in the
collateral
o Creditor institutes the proceeding to gain title or to force a sale, in order to
satisfy the unpaid secured obligation
o Power of sale of foreclosure at a non-judicial public sale
o Creditor may still recover deficiency, unless mortgagor is an accommodation
mortgagor (Liable only up to the extent of the value of the property)
• Waive Security + Specific Performance
o A favorable judgment in an action for Specific Performance gives the Creditor
the right to execute judgment on all the properties
• These are alternative and not cumulative
Indivisibility of a Pledge or Mortgage
• The indivisibility of a pledge or mortgage is not affected by the fact that the debtors are
not solidarily liable
• Art. 2089
o Presupposes several heirs of the debtor or creditor
o It proscribes the foreclosure of only a portion of the debt where before
foreclosure proceedings the debt was already partially paid
o No partial release may be granted in favor of the partial or proportionate
extinguishment
Pactum Commisorium
• A thing pledged/mortgaged may be alienated for the payment of the creditor
o But you must resort to legal proceedings (foreclosure)
• Any stipulation in the contract in contravention of the provisions on Foreclosure is null
and void
• Elements:
o There is property pledge/mortgaged by way of security for the payment of the
principal obligation
o Stipulation for automatic appropriation by the creditor of the collateral in case of
non-payment of the principal obligation within the stipulated period
• If armed with authority, the pledgor/mortgagor may validly sell the collateral to
pledgee/mortgagee for the amount of the debt
• The nullity of a Pactum Commisorium clause does not substantially affect the validity of
the contract of pledge or mortgage
o The agreement subsists even if the parties have not agreed on how Creditor
will recover its credit
• What is customarily done is that the Creditor is appointed as an attorney in fact of the
debtor to alienate the property and apply the proceeds to the balance of the debt
• This should be distinguished from a Dacion en Pago where payment is in kind—the
property or thing is not intended as a security but as payment itself that extinguishes the
obligation
Real Estate Mortgage
Definition
• Real security transaction constituted to secure the fulfillment of a principal obligation by
the absolute owner of the immovable or alienable rights
• Subject to the condition that when the principal obligation becomes due, the collateral
may be alienated for payment to the creditor
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Characteristics
• Real right
• Accessory contract (Validity or existence is dependent upon the validity/existence of the
principal obligation)
• Indivisible (Each and every parcel under mortgage answers for the totality of the debt)
• Inseparable (Mortgage directly and immediately subjects the property upon which it is
imposed, whoever the possessor may be, ot the fulfillment of the obligation for whose
security it was constituted; mortgage adheres to the property regardless of the owner)
Requisites
• Constituted to fulfill a principal obligation
• Mortgagor be the absolute owner of the thing mortgaged
• Persons constituting the mortgage have the free disposal of their property
o In the absence of ownership, that he was legally authorized to do so
• Document in which the mortgage appears must be recorded in the Registry of Property
o Unregistered means not binding upon 3rd person but valid and binding upon the
parties nonetheless
Form of Real Estate Mortgage
• Document must be recorded in the Registry of Property
o Still binding if not recorded, but does not bind third persons
o Gives the Mortgagee the right to demand the execution and recording of the
document
• Form, extent and consequences are to be governed by the Mortgage Law
Obligations Secured
• General Rule: Real Estate Mortgage is limited to the principal obligations mentioned in
the contract of real estate mortgage
• Must be able to correctly and fully point to the Principal Obligation
Dragnet or Blanket Mortgage Clause
• REMs may secure future advancements so long as these debts that are yet to be
contracted are also accurately described
• Dragnet Clause subsumes all debts whether past or future
• Strictly and carefully construed
• Amounts stated as consideration in the REM do not limit the amounts for which the REM
may stand as security
• As long as from the instrument it can be gather that the intent is to secure future and
other indebtedness
• Enables the parties to provide continuous dealings, the nature or extent of which may not
be known or anticipated in time
• Parties avoid the expense and inconvenience of executing a new security
Reliance on Security Test
• You have a loan already secured by a REM
• You are granted another loan— two options:
o The same REM shall secure the new loan
o Another REM (Special Security) shall secure the new loan
§ In this case, the security for the new loan shall first be exhausted
before claiming payment against the old loan
§ The special security shall first be exhausted before the old
mortgaged property can be resorted to
Object of Contract of Mortgage
• Immovables
• Alienable rights in accordance with the laws, imposed upon immovables
o Rights, title and interest in a contract of lease of an immovable, such as a
building, as well as the rights, title and interest acquired in the land on which
the building was constructed
• An assignment by way of guaranty of such rights
o Because it secures a principal obligation
o And is not an absolute conveyance of title that confers ownership on the
assignee
After Acquired Properties
• There can be a stipulation that after the constitution of a REM—
o All property taken in exchange or replacement by the Mortgagor shall become
subject to the mortgage
• No need for the REM to be registered a second time in order to bind the after acquired
properties and affect third parties
• These after acquired properties (movables) may be deemed immobilized
o In relation to Art. 415
o Must be owned by the mortgagor
Effect and Extent
• Mortgage directly and immediately subjects the property upon which it is imposed,
whoever the possessor may be, to the fulfillment of the obligation for whose security it
was constituted
• Extends to the natural accessions, to the improvements, growing fruits, and the rents or
income not yet received when the obligation becomes due
• A registered REM is a right in rem
o A legal right or lien or interest that a creditor has in another’s property
o Inseparable from the collateral and until discharged follows the property
• Mortgagor actually retains the right to dispose of the collateral as owner thereof
o Any sale or transfer does not affect or release the mortgage (right in rem)
o Purchaser is bound to acknowledge and respect the encumbrance to which the
property is subjected
[UNTS]
o It does not affect or release the mortgage; the buyer or transferee must
Difference with a Mortgage Trust Indenture acknowledge and respect the encumbrance
• There are several Creditors in an MTI § Obligation to pay the debt remains with the original debtors
• In an MTI the same Creditors may increase their contribution o It only means that the Buyer/Transferee undertook to pay such mortgage or
• However, only one Creditor is registered or annotated at the back of the REM allow the subject property to be sold upon failure of the mortgage creditor to
o This Creditor acts as a trustee to his fellow creditors obtain payment from the principal debtor
o He handles the changes (increase in contribution or discharge) on a Trustee § Buyer/Transferee is a third party payor and may be subrogated since
level it was with the consent and knowledge of the principal debtor
• In a REM, all changes in contribution and discharged credits must be annotated at the o Buyer/Transferee may also choose abandon the property
back of the title • Unless the buyer/transferee assumes the debt by the contract of sale
§ There is a ranking of priority with regard to the Creditors (junior A REM is separate and distinct, it may be waived by the Creditor
mortgagors)
• No ranking exists in an MTI Real Estate Mortgage
• An accessory contract executed by a debtor in favor of a
Right to Alienate Mortgage Credit creditor ass security for the principal obligation (simple loan or
• Refers to the Mortgagee’s right mutuum)
• Right of the mortgagee to assign its rights under the principal obligation secured by the • A REM creates a real right which follows the property whoever
REM the owner may be after the constitution of the mortgage
o Creditor does not own the property but owns the REM-Credit
o May alienate or assign the same to a third person Requisites:
§ In whole or in part • Contract of Mortgage
§ Assignment includes all accessory rights (guaranty, mortgage, o With SPA if EJFS
pledge or preference) • Obligation is Due and Demandable
• Such assignment of a credit, right or action must appear in a public instrument, or • Debtor in Legal Default
recorded in the Registry of Property to affect third persons • Filing of Petition/Application
o This is if the property is real property
• Right of purchaser at a foreclosure sale is merely inchoate until after the period of Remedies Available to the Mortgagee
redemption has expired without the right to redeem being exercised FORECLOSURE • Foreclosure of the Mortgage
• Simple Action for Collection
Right to Alienate Collateral • Receivership
• Refers to the Mortgagor’s right
• He retains the ownership of the collateral and retains the right to dispose as an attribute Parties to a Real Estate Mortgage
of ownership • Debtor
• Might be the mortgagor’s last recourse to raise funds to pay the debt • Creditor
• Pactum de non Alienado—a stipulation that forbids the mortgagor from selling the • Mortgagor
collateral, or selling without the Mortgagee’s consent o Usually is also the Debtor
o Void (Art. 2130) o 3rd Party Mortgagor/Accommodation Mortgagor
• Stipulation prohibiting mortgagor form entering into a second mortgage is valid
o There is no law that forbids it Contents of the Complaint
• Right of first refusal to purchase the property is valid • Date and due execution of the mortgage
• Assignments (if any
Effect of Mortgagor Alienating the Collateral • Names + Residences of the—
• It does not mean that the new owner assumes the debt o Mortgagor + Mortgagee
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o All persons having or claiming an interest (junior
encumbrancers)
• Description of the mortgaged property
• Date of the note (other documentary evidence of the obligation
secured)
• Amount claimed to be unpaid
Parties in Foreclosure Suit
• Persons obligated to pay the mortgage debt
• Persons who own, occupy or control the mortgaged premises
or any part thereof
• Transferee or grantee of the property
• Junior encumbrancers or any persons claiming a right or
interest in the property
• Mortgagor even if not the owner of the mortgage property
Prohibition against Pactum Commissorium
• Creditor can’t appropriate the things given by way of pledgee
or mortgage or dispose of them
• Elements:
o There is property pledge/mortgaged by way of
security for the payment of the principal obligation
o Stipulation for automatic appropriation by the
creditor of the collateral in case of non-payment of
the principal obligation within the stipulated period
Equity of Redemption
• “Period of Grace”
o 90-120 days; Again you can pay earlier than the 90th
day
• Right of the mortgagor to extinguish and retain ownership of
the collateral
• After default of performance but before the foreclosure
o May be even after the foreclosure but before the
order of the confirmation of the sale
Right of Redemption
• General Rule: Not available in judicial foreclosure
• Exception: Mortgagee is the Philippine National Bank or a
bank or banking institution
• Exists only when a law grants such right
o Statutory right (i.e, General Banking Law—
mortgagor shall have the right within 1-year after the
sale of the collateral to redeem the property)
• After Confirmation
Who may Exercise Right/Equity of Redemption
• Those privy to the contract of mortgage
• Debtors
• Grantee
• Assignee for the benefit of Creditors
• Assignee or trustee in insolvency proceedings
• Successor-in-interest of the Debtor
Exceptions to the Ministerial Issuance of Writ of Possession
• Gross inadequacy of the purchase price
• Third party claiming rights adverse to the debtor-mortgagor
Mortgage Debt Due From Estate; 3 Options
• Waive the mortgage and claim the principal obligation from the
estate of the mortgagor as an ordinary claim
• Foreclose the mortgaged or realize upon his security, by
action in court
• Rely on the mortgage or other security exclusively, and
foreclose, extrajudicially, the same at any time before it is
barred by prescription
• Executor/Administrator may redeem the property mortgaged or
pledged by paying the debt
Note: See end for timeline
Foreclosure
Judicial Foreclosure Extra-Judicial Foreclosure
- Governed by the Rules of Court - Governed by Act No. 3135
- Requires the filing of an independent - Does not require filing of an action
action - Equity of Redemption + Right of
- Equity of Redemption and no Right of Redemption
Redemption; Except if Mortgagee is a - No deficiency judgment (No judicial
Ban proceeding); but recovery of deficiency
- There may be a deficiency judgment is allowed
- Recovery of deficiency by mere motion - Recovery deficiency by an
independent action
- DCC: More convenient, less
complicated, less expensive
- The period to redeem a property sold
in an extrajudicial foreclosure sale is
not extendible. A pending action to
[UNTS]
Timeline for Judicial Foreclosure
1. Contract to Mortgage
2. Contract of Mortgage
3. Demand for Payment of Principal
Obligation
4. Failure of Debtor to Pay Obligation
5. Filing of a Complaint for Foreclosure
6. Judgment of Foreclosure
a. Ascertainment of Amount
Due
b. Order to Pay Amount Due
c. Equity of Redemption
d. Failure to Pay Amount Due
on Judgment
7. Foreclosure Sale + Issuance of
Certificate of Sale
8. Writ of Possession
9. Registration of Order of Confirmation
and Sale
a. Right of Redemption (If
available)
10. Order Confirmation of Sale
11. Application of Proceeds
a. Costs of Foreclosure Sale
b. Principal Obligation
c. Junior Encumbrancers
12. Deficiency Judgment
13. Consolidation of Title
Judicial Foreclosure
Venue
A foreclosure action must be brought in the
RTC of the province where the land or any
part thereof is situated. If a mortgage
contract covers several distinct parcels of
land situated in different provinces, the
action may be brought in the RTC of any of
the provinces and the judgment will be
annul the foreclosure sale does not toll
the running of the one (1) year period
of redemption under Act No. 3135.
Timeline for Extra-Judicial Foreclosure
1. Contract to Mortgage
2. Contract of Mortgage
3. Demand for Payment of Principal
Obligation
4. Failure of Debtor to Pay Obligation
5. Filing of an Application for Extra-
Judicial Foreclosure
6. Notice of Sale + Publication
a. 3 Public Places; Once a
week for 3 consecutive
weeks
b. Order to Pay Amount Due
c. Equity of Redemption
7. Foreclosure Sale
8. Writ of Possession
9. Confirmation of Sale
a. Right of Redemption
3 Months or Before
Registration (Whichever
Earlier) – Juridical Person +
Mortgagor a Bank
1 Year— Natural Person
10. Registration of Order of Confirmation
and Sale (Within 3 months)
11. Application of Proceeds
a. Costs of Foreclosure Sale
b. Principal Obligation
c. Junior Encumbrancers
12. Action for Deficiency
13. Consolidation of Title
Extra-Judicial Foreclosure
Venue
A foreclosure action must be brought in the
RTC of the province where the land or any
part thereof is situated. If a mortgage
contract covers several distinct parcels of
land situated in different provinces, the
action may be brought in the RTC of any of
the provinces and the judgment will be
enforceable against any of the parcels of
land involved
Contents of the Complaint
• Date and due execution of the
mortgage
• Assignments (if any
• Names + Residences of the—
o Mortgagor + Mortgagee
o All persons having or
claiming an interest (junior
encumbrancers)
• Description of the mortgaged property
• Date of the note (other documentary
evidence of the obligation secured)
• Amount claimed to be unpaid
Judicial Foreclosure
When the defendant fails to pay the amount
of the judgement ascertaining the amount
due to the plaintiff upon the mortgage debt,
the court, upon motion, shall order the
property to be sold in the manner and under
the provisions of Rule 39 and other
regulations governing sales of real estate
under execution
Rule 39— Notice of sale shall specify the
place, date, and exact time of the sale
• The place of the sale may be agreed
upon by the parties
• If no agreement— Sale of real property
shall be held in the office of the clerk of
court in the RTC or MTC which issued
the writ, or which was designated by
the appellate court.
enforceable against any of the parcels of
land involved
Where Application Filed
• All applications shall be filed with the
Executive Judge (EJ) via the Clerk of
Court (Ex-Officio Sheriff)
• Whether under the direction of the
Sheriff or a notary public
Extra-Judicial Foreclosure
Conduct of the Sale
• Sale must be made in the province in
which the property or a part thereof is
situated
o Parties may stipulate that a
sale be conducted at a
particular place in the
locality/municipality
o If wording not restrictive,
venue stipulated only an
additional venue
• Made at public auction
• Between 9 am and 4 pm of the date of
the auction
• Under the direction of the:
o Province’s Sheriff,
o The justice, or auxiliary
justice of the peace of the
municipality
o A notary public of said
municipality—entitled to
collect a fee of PHP 5 every
day of actual work performed
+ expenses
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Judicial Foreclosure
Notice of sale is required before it is sold on
execution
Perishable Property
• Written notice of time and place
• 3 public places— conspicuous areas of
municipal or city hall, post office and
public market
• For such time as may be reasonable
(considering the character and
condition of the property)
Other Personal Property
• 3 public places
• Not less than 5 days
Real Property
• 3 public places
• 20 days
• Describing the property
• If assessed value is more than Php
50,000—publish a copy in one
newspaper, selected by raffle (English,
Filipino, or any major regional language
published) , having general circulation
in the province or city
In All types of Property
• Notice of sale shall be given to the
obligor
• At least 3 days before the sale
• Except as to perishable property—
anytime before the sale
• Same manner of service of pleadings
and other papers
Judicial Foreclosure
If assessed value is more than PHP 50,000—
publish a copy in one newspaper, selected by
raffle (English, Filipino, or any major regional
language published) , having general
circulation in the province or city
Extra-Judicial Foreclosure
Notice shall be given by posting notices of
the sale
• Not less than 20 days
• In at least 3 public places of the
municipality or city where the property
is situated
Loans not exceeding PHP 100,000,
exclusive of interests due and unpaid)
granted by rural banks or thrift banks—no
need to publish in a newspaper
• As long as notice of the foreclosure is
posted for 60 days immediately
preceding the public auction
• Posted in the most conspicuous areas
of the municipal building, the municipal
public market, rural bank, barangay
hall, barangay public market (In the
locality where the land mortgaged is
situated)
Parties are not precluded from exacting
additional requirements
• Even if mortgagee is to be constituted
as mortgagor’s attorney in fact, and
with a stipulation that mere sending via
mail or personally of all
correspondence relative to the
mortgage, constitutes valid and
effective notice
• You still must serve formal notice
(Grandfarms)
Extra-Judicial Foreclosure
If property is worth more than PHP 400—
Notice shall be published once a week for at
least 3 consecutive weeks (newspaper of
general circulation in the municipality or city)
- Reposting of the notice of sale is required if the foreclosure does not proceed
on the date originally intended
Effect of Lack of Republication: Foreclosure sale renders it void
Notified General Rule: Personal notice to the mortgagor unnecessaryà posting and
through publication sufficient
Summons
Exception: When the parties stipulate that personal notice is additionally
required to be given the mortgagor
Failure to abide by the general rule, or its exception, renders the foreclosure
proceedings null and void
Judicial Foreclosure Extra-Judicial Foreclosure
Upon finality of the order of confirmation Issuance of a Writ of Possession in favor of
or upon the expiration of the redemption the purchaser that seeks possession of the
period (when such is granted by law; i., 1 foreclosed collateral
year redemption) • Even during the redemption period
• The purchaser at auction sale or last • No discretion is left to the court
redemptioner shall be entitled to the o Any question regarding the
possession of the property regularity and validity of the
sale must be determined in a
Sale confers no title on the purchaser— subsequent proceeding
nothing more than a preferred bidder • Purchaser shall furnish a bond
• No right to the possession of such equivalent to the use of the property for a
property period of 12 months
• Title vests only when the court has • Pending action for annulment of
validly confirmed the foreclosure mortgage or foreclosure sale does not
sale stay the issuance of the Writ of
• During this time between the sale Possession
and the confirmation court may allow • Writ of Possession is an ex parte
the judgment debtor an opportunity proceeding
to pay the amount of the judgment
(Equity of Redemption)
Exception: Exceptions to the Ministerial Issuance of Writ of Possession
A third • Gross inadequacy of the purchase price (Cometa v Intermediate
party is Appellate Court)
actually • Third party claiming rights adverse to the debtor-mortgagor (Barican v
holding Intermediate Appellate Court)
possession o No longer ex parte
adversely • Doctrine of Mortgagee in good Faith – all persons dealing with property
to the covered by the TC, as buyers or mortgagees, are not required to go
judgment beyond what appears on the face of the title (HSLB v Delgado)
obligor
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• Purchaser in Good Faith—one who buys property without notice that • Grantee o Transferee of the statutory right to
some other person has a right to, or interest in, the property and pays • Assignee for the benefit of redeem
full and fair price at the time of purchase or before he has notice of the Creditors o Transferee Mortgagor’s interest in
claim or interest of other persons in the property • Assignee or trustee in the collateral
o Test: Was there a Notice of Lis Pendens annotated at the insolvency proceedings o Succeeds to the interest by
time of the purchase? • Successor-in-interest of the operation of law
Debtor o Joint Debtor-Mortgagors who are
Judicial Foreclosure Extra-Judicial Foreclosure o One to whom the joint owners of the collateral sold
Debtor-mortgagor is allowed the opportunity Party may file a petition to set aside the debtor has conveyed o NOTE: Surety can’t redeem the
to show why the sale should not be foreclosure sale and to cancel the writ of his interest in the collateral, because as surety he
confirmed during the hearing on the motion possession in the same proceeding property for the pays the debts and is therefore in
of confirmation of the sale o Appealable decision purpose of redemption the place of the creditor
• When Done: Not later than 30 days o One who succeeds to • Any judicial creditor or judgment creditor of
Grimalt v Velasquez: Failure to give notice after the purchaser was given the interest of the said debtor
of the hearing for motion of confirmation is possession debtor by operation of • Any person having lien on the property
good cause for setting aside the sale • Specify damages suffered by the law subsequent to the mortgage or deed of trust
debtor o One or more joint o Must prove his right to redeem via
• If court grants in favor of debtor— debtors documents in Rule 39
dispose all or part of the bond o Wife as regards her • Mortgagor that generally has the right to
furnished by the person who obtained husband’s homestead redeem
possession (some of her • NOTE: If purchaser is a junior
husband’s property encumbrancer—not considered as a
Judicial Foreclosure Extra-Judicial Foreclosure passes to her) redemptioner
Redemption Right of Redemption o Can’t redeem
• Right to redeem must be • Manifestation of desire to redeem not o Lien is still fully protected by
seasonably invoked as a counter enough purchasers
claim at the earliest opportunity o There must be an actual and Amount of the debt Equity Redemption: Amount of debt
o In the answer to the simultaneous tender of payment
complaint for judicial accompanying statement of Right of Redemption: If Redemptioner is a—
foreclosure intention • Bank: Amount Due on Mortgage + Interest
• An implied admission of the • Person who received Redemption Payment Rate + Expenses for sale
regularity of the sale and estops shall execute and deliver to redemptioner a • Non-Bank: Full Amount paid by Purchaser +
the petition from later impugning Certificate of Redemption acknowledged 1% Interest per month on Purchase Price +
its validity on that ground before a Notary Public or other officer Taxes Assessed
• Filing of an action for annulment authorized to take acknowledgements of Equity Redemption: 90-120 Days Equity Redemption: 90-120 Days from entry of
of mortgage does not toll the conveyances of real property from entry of Judgment of Judgment of Foreclosure
period of redemption o Certificate must be filed and Foreclosure
• Unequivocal tender of payment recorded in the Registry of Deeds Right of Redemption
for the full amount of repurchase Right of Redemption • Commences from the date of registration of
Who may Redeem • General Rule: No Right of sale and expires upon registration of the
Who may Redeem: • The Debtor—generally has the right to Redemption certificate of sale or 3 months (Judicial
• Those privy to the contract of redeem • Exception: Mortgagee is a Bank Person)
mortgage • Successors-in-interest—includes but is not
• Debtors limited to
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o This new rule on commencement Accion Interdictal Accion Publiciana Accion de Reivindicacion
of period may apply to mortgages (Ejectment)
contracted before 13 June 2000) - Summary action for - Plenary action for - Seeks recovery of
• May redeem the property at anytime within forcible entry or recovery of the right to ownership as well as
the term of 1 year from and after registration unlawful detainer possess when the possession
of sale - Recovery of physical dispossession has - Includes the jus
o Redemption to be governed by the possession where the lasted for more than possidendi
provisions of Secs. 464-466 and Dispossession has not one year - Action whereby a party
Civ Pro Rules lasted for more than - Recovery of the right to claims recovery of
• Banks, Quasi-Banks and Trust Entities— one year possess ownership over the
Whether judicial or extra-judicial foreclosure - Brought where - Dispossession has property including the
o Security for any loan or other credit dispossession of real lasted for more than possession thereof
accommodation property has taken one year or when - Note: Different from
o Property is sold for the full or place under any of the effected by means interdictal and
partial payment of his obligation means in Sec. 1, Rule other than those publiciana as those
o 1 year redemption period 70; mentioned in Sec. 1, actions merely allege
§ If Juridical Person—not - Provides an Rule 70 proof of a better right
more than 3 months after expeditious means of - A plenary action in an to possess without
foreclosure, or until the protecting actual ordinary proceeding in claim of title
registration of the possession of property the CFI
Certificate of Foreclosure - Filed within 1 year after - Determines the better
sale; whichever is earlier the unlawful right of possession
deprivation or independently of title
Equity of Redemption Right of Redemption deprivation
- Right of the mortgagor to extinguish - Right granted to the debtor, successor- - 2 forms of an
the mortgage and retain ownership of in-interest or any judicial creditor or ejectment suit to
the property judgment creditor of the debtor recover possession of
- Payment within 90 to 120 days after - Redeem within 1 year from the real property
entry of judgment registration of the Sheriff’s certificate of Exclusive Original
foreclosure of sale Jurisdiction: MeTCs, Metro Manila Outside Metro Manila
- Wholly statutory MuTCs, MCTCs • MTC: < PHP 50,000 • MTC: < PHP 20,000
• RTC: > PHP 50,000 • RTC: > PHP 20,000
Writ of Possession (No matter the value of the
• General Rule: A purchaser in a public auction sale of a foreclosed property is entitled to property)
a writ of possession
o Upon an ex parte petition of the purchaser, it is ministerial upon the trial court
to issue the writ of possession in favor of the purchaser
• When Entitled to Writ :
o Finality of the Order of Confirmation
o Expiration of the period for redemption
• Exception: Third party is actually holding the property adversely to the judgment obligor
o Qualification to the Exception: The property need not only be possessed by
a third party, but also held by the third party adversely to the judgment obligor
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QUASI-CONTRACTS o Qualification: Without prejudice to direct obligation of the delegate toward the
owner of the business
General Rule • 2 or more Officious Managers: Solidary liability
• Elements of Quasi Contract o Exception: Management assumed to save the thing/business from imminent
o Lawful danger
o Unilateral
o Voluntary Liability for Fortuitous Events
• No one shall be unjustly enriched or benefited at the expense of another • Undertakes risky operations
• Voluntary: The actor in quasi-contracts is not bound by any pre-existing obligation to act o Requisite: Owner was not accustomed to embark upon
• Unilateral: Arises from the sole will of the actor who is not previously bound by any • Preferred his own interest to that of the owner
reciprocal or bilateral agreement • Fails to return the property or business
• Purpose: The reason why the law creates a juridical relations and imposes certain o Requisite: Demand by the owner
obligation is to prevent a situation where a person is able to benefit or take advantage of • Assumed the management in bad faith
such lawful, voluntary and unilateral acts at the expense of said actor • Manifestly unfit to carry on the management
o Exception: Assumed to save property or business from imminent danger
Negotiorum Gestio • He prevented a more competent person from taking up the management
o Exception: Assumed to save property or business from imminent danger
Negotiorum Gestio
• Elements of Negotiorum Gestio: Liabilities of the Owner
o Voluntarily takes charge of the agency or management of the business or • Obligations incurred in his interest
property of another • Reimburse officious manager for necessary + useful expenses
o The business or property must be either neglected or abandoned • Damages incurred by the officious manager in the performance of his duties
o Without any power from the owner • Requisite for Liability: Owner enjoys the advantages of the officious management
o Assumption of the agency or management must be made in good faith o He is benefitted
• Duty of Gestor: Obliged to— • Qualification: Liable even without benefit if to prevent imminent and manifest loss
o Continue the same until the termination of the affair and its incidents o Exception: Liable Even if No Benefit and No Imminent Danger—
o Require the person concerned to substitute him § Requisites:
§ Qualification: Only if the owner is in a position to do so • Manager acted in good faith
• When No Negotiorum Gestio Arises: • Property or business is intact + ready to be returned to the
o Property or business is not neglected or abandoned owner
§ Governed by rules on unauthorized contracts
o Owner tacitly authorizes the Gestor (Art. 2149) Liability of Officious Manager for Contracts with 3rd Persons
§ Governed by rules on agency • General Rule: Personally liable for contracts
o Even though he acted in the name of the owner
Duty of Officious Manager
o No right of action between the owner and the 3rd persons
• Perform duties with all the diligence of a good father of a family • Exceptions:
• Possible Liability: Pay damages suffered by the owner through his fault or negligence o Owner expressly or tacitly ratified the management
• Option of the Court: Increase or Moderate indemnity according to circumstances of o Contract refers to things pertaining to the owner of the business
each case
Extinguishment of Officious Management
Delegation by Officious Manager • Owner repudiates it or puts an end thereto
• Delegates to another person all or some of his duties • Officious manager withdraws from the management
• Effect: Liable for the acts of the delegate o Subject to the provisions of Art. 2144
• Death, civil interdiction, insanity or insolvency of the owner or the officious manager
[UNTS]
Solution Indebiti • Requisite: Good faith belief that payment was being made of a legitimate and subsisting
claim
Solutio Indebiti • Remedy of Payee: Proceed only against true debtor or the guarantors to whom the
• What: Received something + no right to demand + delivered via mistake action is still effective
• Effect: Obligation to return o Note: Payee who unduly paid
• Requisites:
o He who paid was not under obligation to do so Other Quasi Contracts
o Payment was made by reason of an essential mistake of fact
Other Quasi Contracts
Property Belonging to a 3rd Person • Support is given by a stranger + without knowledge of person obliged to support
• What: Payee receives something that is not due o Effect: Right to reimbursement
• Effect: Comply with Art. 1984 § Exception: Gave it out of piety + without intention of being repaid
o Thing stolen + knows who its true owner is = advise true owner of the deposit • Funeral expenses paid by 3rd person + without knowledge of relatives obliged to
o Failure to Claim within 1 Month: Depositary relieved of all responsibility support
§ Return thing to depositor o Effect: Right to reimbursement
o Reasonable grounds to believe that the thing is unlawfully acquired by the § Requisite: Claim made by 3rd person
depositor
• Person obliged to support an orphan/insane/indigent person + unjustly refuses to
§ Return the thing
give support
Liability of Bad faith Recipient
o Any 3rd person may furnish support to the needy individual
o Effect: Right to reimbursement
• What: Accepts undue payment in bad faith
• Effects: • Injury/illness by accident or other cause + treated/helped + not in a condition to give
o Alternative (Depending of type of object/thing)— consent to a contract
§ Legal interest if money o General Rule: Pay for services of the physician or other person aiding him
§ Liable for fruits received or which should have been received § Exception: Service rendered out of pure generosity
o Loss or impairment of the thing from any cause, and for damages to the person • Property saved from destruction + fire, flood, storm or other calamity + without
who delivered the thing knowledge of owner
§ Qualification: Until recovered o Effect: Owner to pay compensation
• Failure to comply with health/safety regulations + Government makes the necessary
Liability of Good faith Recipient work
• What: Accepts undue payment in good faith o Effect: Pay expenses
• When Applicable: Thing certain + determinate § Qualification: Even over his objection
• Effect: Liable for impairment or loss of the thing + accessories and accessions • Movables owned by 2 or more persons are commingled or confused + Via accident
o Qualification: Insofar as he has been benefitted or fortuitous event
o If good faith recipient alienates— o Effect: Co-ownership
§ Return the price or assign the action to collect the sum

Liability of Good faith Recipient

• Recipient—
o Destroyed the document or allowed the action to prescribe
o Gave up the pledges
o Cancelled the guaranties of his right
• Effect: Exempt from obligation to restore
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TORTS AND QUASI-DELICTS
Abuse of Right (Art. 19)
• Every person must, in the exercise of his rights and in the performance of his duties, act
with justice, give everyone his due, and observe honesty and good faith
• Requisites:
o Legal right or duty
o Exercised in bad faith
o For the sole intent of prejudicing or injuring another
o Objective of act is illegitimate
• Globe Mackay v CA: A right, though by itself legal because recognized or granted by law
as such, may nevertheless become the source of some illegality
• Amonoy v Guitierrez: Art. 19 precludes the defense of damnum absque injuria. Damnum
absque injuria does not apply when there is an abuse of a person’s right
o The right ends when it disappears, and it disappears when it is abused
Solutio Indebiti
• Imposes liability even without fault or negligence (Indemnity)
• Requisite:
o Injurious act or event benefited the defendant
o Delivery or payment by reason of mistake
• This article is based on equity
o An involuntary act, because of its character cannot generally create an
obligation; but when by such act its author has been enriched, it is only just that
he should indemnify for the damages caused, to the extent of his enrichment
o Qualification: Indemnity does not include unrealized profits of the injured
party, because defendant’s enrichment is the limit of his liability
• Burden of Proof: Plaintiff
o Prove the extent of the benefit or enrichment of the defendant
• TLC: What is the classic example? Cows that transferred to the adjacent property
because of flooding

Test of Abuse of Right Note: See also Strict Liability Torts

• No hard and fast rule and depends on the circumstances of each case
• General Rule: The exercise of a right must be in accordance with the purpose for which Acts Contrary to Law
it was established • Every person who, contrary to law, willfully or negligently causes damage to another,
• Qualification: shall indemnify the latter for the same
o Must not be excessive or unduly harsh o Note: May be done willfully or negligently
• Rationale of Provision: Overarching Remedy for acts not punishable
Damnum Absque Injuria o General sanction for all other provisions of law which do not especially provide
• Exercise of a right + Exercised Validly or in good Faith + Damage is caused for their own sanction
• Effect: Not a legal injury • Requisites:
o No liability for damage o Act must be willful or negligent
o It must be contrary to law
• Contrary Existing Law; Art. 20 = No Existing Obligation + Contrary to Existing law o Damages must be suffered by the injured party
• TLC: Contrary to law
Unjust Enrichment/Solutio Indebiti • ETR: Art. 1170 = Culpa Contractual (performance of obligation); Art. 2176 = No Existing
• Every person who through an act of performance by another, or any other means, Obligation + Not
acquires or comes into possession of something at the expense of the latter without just
or legal ground, shall return the same to him Contrary to Morals, Good Customs or Public Policy (Art. 21)
• Action in Rem Reverso: For the recovery of what has been paid or delivered without • Any person who wilfully causes loss or injury to another in a manner that is contrary to
just cause or legal ground morals, good customs or public policy shall compensate the latter for the damage
o ETR: To prevent Unjust Enrichment • Requisites:
o Requisites: o Legal act
§ Defendant has been enriched o Act is contrary to morals, good customs and public policy
§ Plaintiff has suffered a loss o Done with intent to injure
§ Enrichment of the defendant is without just cause or legal ground • The injury suffered by the plaintiff may refer to any determinate right or property, whether
§ Plaintiff has no other action based on contract, quasi-contract, crime material or not
or quasi-delict • The doctrine of proximate cause must apply, because the defendant must have caused
the injury through their act or omission
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o If through the plaintiff’s own fault or negligence, they sustained injury, they Intentional Torts
cannot recover • Tort is intentional if an actor desires to cause the consequences of his act or that he
• TLC: Contra bonus mores/ contrary to morals believes that the consequences of his acts are certain to cause damage to another.
• It is equivalent to dolo or deceit in the Penal Code
Breach of Promise to Marry • Elements of Intentional Torts: Tortfeasor—
• General Rule: Mere breach of promise to marry is not an actionable wrong o Desires the consequence of their act
• Exceptions o They believe that the consequences are substantially certain to result from his
o Wassmer v Velez: To formally set a wedding and go through all the above- act
described preparation and publicity, only to walk out of it when the matrimony is
about to be solemnized, is quite different Negligent Torts
§ This is palpably and unjustifiably contrary to good customs • It is found in the rules on quasi delicts under Articles 2176 to 2194 of the New Civil Code.
o Baksh v CA: Seduction; Where a man's promise to marry is in fact the • In this kind of tort, there is negligence, different from intentional tort
proximate cause of the acceptance of his love by a woman and his • Thus, negligence is the omission to do something which a reasonable man guided by those
representation to fulfill that promise thereafter becomes the proximate cause of considerations which ordinarily regulate the conduct of human affairs, would do, or the
the giving of herself unto him in a sexual congress, proof that he had, in reality, doing of something which a prudent and reasonable man would do
no intention of marrying her and that the promise was only a subtle scheme or
deceptive device to entice or inveigle her to accept him and to obtain her Intentional Torts Negligent Torts
consent to the sexual act, could justify the award of damages pursuant to - Harmful consequences are - Act or omission merely creates a
Article 21 not because of such promise to marry but because of the fraud and substantially certain to occur or are foreseeable risk or harm, which may or
deceit behind it and the willful injury to her honor and reputation. It is essential, intended may not actually be realized
however, that such injury should have been committed in a manner contrary to - Substantial certainty of harmful - Conduct of defendant creates a risk or
morals, good customs or public policy consequences harm which may or may not result
Malicious Prosecution Human Relations Tort
• Institution of any action or proceeding, either civil, administrative or criminal, maliciously • Liability for personal acts or omission is founded on that indisputable principle of justice
and without probable cause recognized by all legislators that when a person by his act or omission causes damage or
• Elements: prejudice to another, a juridical relation is created by virtue of which the injured person
o The fact of the prosecution or that the prosecution did occur and that the acquires a right to be indemnified and the person causing the damage is charged with
defendant was himself the prosecutor or that he instigated its commencement the corresponding duty of repairing the damage
o That the action finally terminated with an acquittal • The reason for this is found in the obvious truth that man should subordinate his acts to
o That in bringing the action, the prosecutor acted without probable cause the precepts of prudence and if he fails to observe them and cause damage to another,
o That the prosecutor was actuated or impelled by legal malice, that is, by he must repair the damage
improper or sinister motive • Examples: Human Relations provisions in the Civil Code include Art. 19 (Abuse of
Rights) , Art. 20 (Acts Contrary to Law), Art. 21 (Acts contrary to morals), and Art. 26
Oppressive Dismissal (Violation of Human Dignity)
• The right of an employer to dismiss an employee is not to be confused with the manner in Strict Liability Tort
which this right is to be exercised and the effects flowing therefrom. If the dismissal was • There no intention to cause damage. Negligence is not necessary
done antisocially or oppressively, then there is a violation of Article 1701, which prohibits o However, it is sufficient that the act cause injury to another
acts of oppression by either capital or labor against the other, and Article 21, which
• Intention or negligence of the actor is not necessary, but the resulting injury is sufficient or
makes a person liable for damages if he willfully causes loss or injury to another in a
that it is enough that the law by reason of public policy, imposes liability upon the
manner that is contrary to morals, good customs, or public policy
defendant. This is akin to the principle of res ipsa loquitur
• When the manner in which the company exercised its right to dismiss was abusive,
oppressive and malicious, it is liable for damages Direct Tortfeasor— Natural Persons
• Act or omission causing damage to another, there being fault or negligence
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• Entirely separate and distinct from the civil liability arising from negligence under the RPC
• Cause of action for an action based on tort is negligence or fault
• Elements:
o Act or omission constituting fault or negligence
o Damage caused by the said act or omission
o Causal relation between the damage and the act or omission
o No pre-existing contractual relation between the parties
§ Exception: When the Tort is that which breaches the contract
• Direct Tortfeasor: One who is made liable for a tort committed through his own acts
o Liability: Payment of damages for injury suffered
Standard of Care Applied
• Conventional (Stipulation)
• Good Father of a Family
• Extraordinary Diligence as Required by Law
o Common Carriers
o Banking
o Energy
STANDARD OF CARE
MINOR A minor should not be held to the same degree of care as an
adult, but his conduct should be judged according to the average
conduct of persons of his age and experience
A child must conform for his own protection is that degree of care
ordinarily exercised by children of the same age, capacity,
discretion, knowledge and experience under the same similar
circumstances
PERSONS WHO General Rule: weak or accident-prone person must come up to
HAVE PHYSICAL the standard of a reasonable man, otherwise, he will be
DISABILITY considered as negligent
Exception: If the defect amounts to a real disability, the standard
of conduct is that of a reasonable person under like disability
EXPERTS AND General Rule: They should exhibit the case and skill of one who
PROFESSIONALS is ordinarily skilled in the particular field that he is in.
Note: Does not apply solely or exclusively to professionals who
have undergone formal education
Exception: When the activity, by its very nature, requires the
exercise of a higher degree of diligence (e.g. Banks; Common
carriers)
INSANE PERSONS General Rule: The insanity of a person does not excuse him or
his guardian from liability based on quasi-delict (Arts. 2180 and
2182, NCC).
This means that the act or omission of the person suffering from
mental defect will be judged using the standard test of a
reasonable man
BASIS FOR HOLDING PERMANENTLY INSANE PERSON
LIABLE FOR HIS TORTS:
- To induce those interested in the estate of the insane person
to restrain and control him
- The fear that an insanity defense would lead to false claims
of insanity to avoid liability
LIABILITY OF INSANE PERSON
- Under the RPC, an insane person is exempt from criminal
liability. However, by express provision of law, there may be
civil liability even when the actor is exempt from criminal
liability.
- An insane person is still liable with his property for the
consequences of his acts, though they performed unwittingly
EMPLOYERS That degree of care as mandated by the Labor Code or other
mandatory provisions for proper maintenance of the work place
or adequate facilities to ensure the safety of the employees.
Note: Failure of the employer to comply with mandatory
provisions may be considered negligence per se
EMPLOYEES Employees are bound to exercise due care in the performance of
their functions for the employers. Liability may be based on
negligence committed while in the performance of the duties of
the employee.
OWNERS, General Rule: The owner has no duty to take reasonable care
PROPRIETORS, AND towards a trespasser for his protection or even to protect him from
POSSESSORS OF concealed danger.
PROPERTY
Exceptions:
- Visitors: Owners of buildings or premises owe a duty of care
to visitors.
- Tolerated Possession - Owner is still liable if the plaintiff is
inside his property by tolerance or by implied permission.
However, common carriers may be held liable for negligence
to persons who stay in their premises even if they are not
passengers
- Doctrine of Attractive Nuisance
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- State of Necessity – A situation of present danger to legally
protected interests, in which there is no other remedy than
the injuring of another’s also legally protected interest
DOCTORS General Practitioner: Ordinary care and diligence in the
application of his knowledge and skill in the practice of his
profession
Specialist: The legal duty to the patient is generally considered
to be that of an average physician
LAWYERS An attorney is bound to exercise only a reasonable degree of care
and skill, having reference to the business he undertakes to do
Direct Tortfeasor— Juridical Persons
• A corporation is civilly liable in the same manner as natural persons
• The EE or Officer concerned is not free form liability but the corporation may be held
directly and primarily liable under the concept of vicarious liability or direct corporate
responsibility
• Close Corporation: SHs who are personally involved in the operation of the corporation
may be personally liable for corporate Torts
• Corporation by Estoppel: All persons who assume to act as a corporation knowing it to
be without authority to do so shall be liable as general partners for all debts, liabilities and
damages incurred or arising as a result thereof
• Partnerships: Partnership is solidarily liable with the partner if the latter commit tortious
acts while acting in the pursuit of partnership business (Mutual Agency)
Vicarious Liability (Doctrine of Imputed Negligence)
• Person is not only liability for torts committed by himself, but also for torts committed by
others with whom he has a certain relationship and for whom he is responsible
• Character of Liability: Primary and Direct Liability
• Person held vicariously liable may be proceeded against singly or together with the
person for whose acts or omissions he is made answerable for
• Presumption: There is failure to exercise due care and vigilance over the acts of the
subordinates to prevent them from causing damage; negligence is imputed to them by
law
o When Presumption Ends: Prove that they observed all the diligence of a
good father of a family to prevent damage
• When Not Applicable: When moral culpability can be directly imputed to the direct
tortfeasor— actual intent to cause harm to others
Vicarious Liability— Parents Exercising Parental Authority
• Who: Father and Mather
o Note: Death or incapacity of father irrelevantà Art. 221, Family Code
§ Persons exercising PA shall be civilly liable for the torts of the
children under their care
• Responsible for the damages caused by minor children
o Minors: Below 21 years of age (Note: Not amended by RA NO. 6809)
• Requisite: Live in their company
• Basis: Natural or logical consequence of the duties and responsibilities of parents— their
parental authority— which includes the instructing, controlling and disciplining of the child
Vicarious Liability— Guardians
• Who: Guardians
o Qualification: If Minor/Insane has no parent/guardian, the minor shall be
answerable with his own property in an action against him where a guardian ad
litem will be appointed
• Responsible for damages caused by Minors or incapacitated persons
• Requisites:
o Are under their authority
o Live in their company
Vicarious Liability— Employers— Owner/Manager of Establishment
• Who: Owner or Manager of Establishment/Enterprise
o Responsible for damages caused by their EEs
o Requisites: Alternatives—
§ EEs in the service branches in which the latter are employed
§ On the occasion of their functions
• Who: Employers in General
o Responsible for damages caused by their EEs and Household Helpers
§ Even if ER is not engaged in any business or industry
o Requisite:
§ EEs acted within the scope of their assigned tasks
§ EE was in the actual performance of his assigned tasks or duties
o How to Prove Liability of ER:
§ Prove existence of EE-ER Relationship
• Included Acts: Any act done by an EE, in furtherance of the interests of the ER or for
the account of the ER at the time of the infliction d of the injury or damage
• Nature of Liability:
o Direct— Basis of liability is his own negligence in hiring and supervising
o Primary— May be pursued without having to exhaust the EE’s assets
o Solidary— Injured may recover full amount
o Note: Liability of ER is independent of the EE’s own liablity for fault or
negligence and is distinct from the subsidiary civil liability under Art. 103, RPC
• Underlying Presumption: If the EE was negligent the ER was negligent in the—
o Hiring/Selection of their EEs
o Supervision of the EEs
• Defense: Diligence of a good father in the selection and supervision of employees
• Basis: Bonus pater familias and not respondeat superior (Let the superior reply)
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o Theory bass the liability of the master ultimately on his own negligence and not o Custody: Protective and supervisory custody that the school, its head and
on that of his servant teachers exercise over the pupils, for as long as they are in attendance in
o The losses caused by the torts of employees, which as a practical matter are school, which includes recess time
sure to occur in the conduct of the employer’s enterprise, are placed upon the § Does not require that the student live and board in school
enterprise itself, as a required cost of doing business • Note: Applies to all schools academic or non-academic; technical or vocational in nature
• Defense: Teacher/School observed all diligence of a good father of a family
Respondeat Superior Pater Familias • Basis: Loco parentis
- Master is absolutely liable to servant’s - There is only a presumption of o Called upon to exercise reasonable supervision over the conduct of students
act or omission negligence on the part of the ER • Special Parental Authority: School; School Administrators; Teachers
- No defense of negligence - Defense of negligence available o Individual entity/institution engaged in child care
- Art. 103, RPC - Art. 2180, NCC o Requisite: While under their supervision, instruction or custody
§ Limited and present only when the child is under the SIC
Article Liability o Qualification: Whether inside or outside of school premises, entity or
Art. 2180 Vicarious Liability— Direct and Primary institution
Art. 1759 (Culpa Liable for intentional assaults committed by its EEs upon its • Liability of Person Exercising Special Parental Authority: Acts or omissions of the
Contractual) passengers (Absolute) unemancipated minor
o Extent of Liability: Principally and solidarily liable for damages
Registered Owner Rule o Exception: Proven to have exercised proper diligence required under the
• The registered owner of a motor vehicle is solidarily liable for the injuries and damages circumstances
caused by the negligence of the driver, in spite of the fact that the vehicle may have al- o Qualification: Parents, Judicial guardians, persons exercising sub-PA
ready been the subject of an unregistered Deed of Sale in favor of another person § Subsidiarily liable
• Unless registered with the Land Transportation Office, the sale — while valid and binding
between the parties — does not affect third parties, especially the victims of accidents Vicarious Liability— State
involving the said transport equipment • Who: State
• Thus, in a case the registered owner was held liable for the acts of the driver employed • General Rule: State is not liable for the negligent acts of its regular officers or employees
by its former lessee who has become the owner of that vehicle by virtue of an in the performance of their ordinary functions
unregistered Deed of Sale • Exception: State acts through a Special Agent
• Remedy of Registered Owner: Be indemnified by the real or actual owner of the o Does not apply when damage is caused be an official to whom the task done
amount that he may be required to pay as damages for the injury caused to the plaintiff properly pertains
o Special Agent: One who receives a definite and fixed order or commission,
Subsidiary Liability of Employers under Revised Penal Code foreign to the exercise of the duties of his office if he is a special official so that
• ER may be held subsidiarily liable for a felony committed by his EE in the discharge of in representation of the state and being bound to act as an agent thereof he
his duty executed the trust confided to him
• Requisite:
o Establish EE-ER Relationship Liability of LGUS
o ER engaged in some industry • Who: Provinces, Cities and Municipalities
o Crime was committed by the EE in the discharge of their duties o Liable for damages for the death of, injuries suffered by any person
o Execution against the latter has not been satisfied due to insolvency o Requisite: Damage, injury death caused by the defective condition of the
roads, streets, bridges, public buildings, and other public works under their
Vicarious Liability— Teachers and Schools control or supervision
• Who: Teachers or Heads of Establishments of arts and trade • Who: LGUs and their Officials
• Responsible for damages caused by their pupils and students or apprentices o Liable for death or injury to person or damage to property
• Requisite: Pupil, Student, Apprentice remains in their custody
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Vicarious Liability— Claim for Reimbursement o Implied warrant that thee premises, appliances and amusement devices are safe
• Who: Person who pays for damage caused by his dependents or EEs for the purpose for which they are designed
• Recover from dependent/EE what he had paid or delivered
Engineer or Architect who drew up the plans and specifications is liable
Vicarious Liability of Owner of Vehicle • Building collapses within 15 years
• Who: Owner of Vehicle • Collapse is due to:
• Motor vehicle mishaps à Solidarily liable with his driver o Defect in those plans and specifications
o Carticiano v Nuval: The presumption is actually against the owner. Once a o Defects in the ground
driver is proven negligent in causing damage, the law presumes that the • Defense: No action 10 years from collapse
vehicle owner is equally negligent and imposes the burden of proving proper
selection and supervision of the EE as a defense Contractor Liability
• Requisite: • Edifice falls within 15 years
o Owner was in the vehicle • Collapse is due to:
o Could have, by the use of due diligence, prevent the misfortune o Defects in the construction
• Disputable Presumption: Driver was negligent o Use of materials of inferior quality furnished by the contractor
o Requisite: Guilty of reckless driving or violating traffic regulations at least twice o Due to any violation of the terms of the contract
within the next preceding 2 months • Plaintiff need only prove that such conditions exists, and need not prove that negligence
• Note: If owner was not inside the motor vehicle, Apply Art. 2180 of the defendant be the cause of the conditions
• Defense: No action 10 years from collapse
Art. 2180 Art. 2185
- Must have EE-ER Relationship - No need for EE-ER Relationship Joint Tortfeasors
- Owner of Vehicle does not have to be - Owner of Vehicle is in the car • 2 or more persons are liability for quasi-delict
in the car - Presumption of negligence on the • All persons who command, instigate, promote, encourage, advise, countenance,
- Presumption of negligence is on the driver’s part when found to have been cooperate in, aid or abet the commission of a tort, or who approve of it after it is done, if
owners part guilty of reckless driving at least 2 done for their benefit
- Defense: Due diligence in selection within the last 2 months • Character of Liability: Solidary
and employment - Defense: Due diligence to prevent • Remedy of Injured Party: Sue all of them or any number less than all
- Liability of owner is primary mishap
- Liability of owner is solidary Proximate Cause
• That which, in the and continuous sequence, unbroken by any efficient intervening cause,
Vicarious Liability of Proprietors of Buildings or Structure produces the injury and without which the result would not have occurred
• Damages resulting from its total or partial collapse • Proximate Legal Cause: Acting first and producing the injury, either immediately or by
o Requisite: Collapse is due to lack of necessary repairs setting other events in motion, all constituting a natural and continuous chain of events
• Explosion of machinery each having a close causal connection with its immediate predecessor, the final event in
o Requisite: Not been taken care of with due diligence the chain immediately affecting the injury as a natural and probable result of the cause
• Inflammation of explosive substances which first acted, under such circumstances that the person responsible for the first event
o Requisite: Not been kept in a safe and adequate place should, as an ordinary prudent and intelligent person, have reasonable ground to expect
• Excessive smoke, which may be harmful to persons or property at the moment of his act or default that an injury to some person might probably result
• By the falling of trees situated at or near highways or lanes therefrom
o Requisite: Not caused by force majeure • Dominant or immediate cause
• By emanations from tubes, canals, sewers or deposits of infectious matter, constructed • The cause that sets the others in motion
without precautions suitable to the place • The efficient cause
• Note: No requirement to prove negligence • Need not be the sole cause and not necessary that it immediately results in injury, but sets
in motion a chain of events
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• Rationale for Rule: There must be direct causal connection between the damage suffered
by the plaintiff and the act or omission of the defendant
• Where the particular harm sustained was reasonably foreseeable at the time of the
defendant’s misconduct, his act or omission is the legal cause thereof. Foreseeability is
the fundamental basis of the law of negligence. To be negligent, the defendant must have
acted or failed to act in such a way that an ordinary reasonable man would have realized
that certain interests of certain persons were reasonably subjected to a general but definite
class of risks
• How Determined: Determined by the facts of each case upon mixed considerations of
logic, common sense, policy and precedent
• But-For Test/Sine Qua Non Test: Damage would not have resulted had there been no
negligence on the part of the defendant
Concurrent Cause
• Where several causes producing an injury are concurrent and each is an efficient cause
without which the injury would not have happened, the injury may be attributed to all or any
of the causes and recovery may be had against any or all of the responsible persons
although under the circumstances of the case, it may appear that one of them was more
culpable, and that the duty owed by them to the injured person was not the same
• No actor’s negligence ceases to be a proximate cause merely because it does not exceed
the negligence of other actors. Each wrongdoer is responsible for the entire result and is
liable as though his acts were the sole cause of the injury
Remote Cause
• One which would have been a proximate cause, had there been no efficient intervening
cause after it and prior to the injury
• Rule: Cannot be made the cause of an action if—
o Remote cause did nothing but furnish the condition or give rise to the occasion
by which the injury was made possible
o If there intervened between such prior or remote cause the injury, a distinct,
successive, unrelated and efficient cause of the injury
§ Even if such injury would not have happened if not for such conditions
• Manila Electric v Remoquillo: It cannot be made the basis of an action if such did nothing
more than furnish the condition or give rise to the occasion by which the injury was made
possible, if there intervened between such prior or remote cause and the injury a distinct,
successive, unrelated, and efficient cause of the injury, even though such injury would not
have happened but for such condition or occasion
Cause in Fact (Bataclan v Medina)
• Whether such negligent conduct is a cause without which the injury would not have
occurred or is the efficient cause which set in motion the chain of circumstances leading
to the injury
Efficient Intervening Cause
• One which in ordinary human experience is reasonably to be anticipated, or one which the
defendant has reason to anticipate under the particular circumstances, the defendant may
be negligent, among other reasons, because of failure to guard against it
• There is an intervening cause combining with the defendant’s conduct to produce the
result, and the defendant’s negligence consists in failure to protect the plaintiff against that
very risk
• Test To Of Determine Whether Or Not The Intervening Cause Is Sufficient: Whether
the intervention of a later cause is a significant part of the risk involved in the defendant’s
conduct, or is so reasonable connected with it that the responsibility should not be
terminated
o In the affirmative, such foreseeable intervening forces are within the scope of the
original risk, and hence of the defendant’s negligence
o In the negative, there exists an efficient intervening cause that relieves the
defendant of liability
Cause As Distinguished From Condition (Phoenix Construction v IAC)
• The distinction between cause and condition has been almost entirely discredited
• So far as it has any validity at all, it must refer to the type of case where the forces set in
operation by the defendant have come to rest in a position of apparent safety, and some
new force intervenes
• But even in such cases, it is not the distinction between “cause” and “condition” which is
important, but the nature of the risk and the character of the intervening cause
Doctrine of Last Clear Chance
• The person who has the last clear chance or opportunity of avoid an accident,
notwithstanding the negligent act of his opponent or the negligence of a third person which
is imputed to his opponent, is considered in law solely responsible for the consequences
of the accident
• Presupposes a perilous situation created or existed through the negligence of both parties,
but assumes, and makes it a condition of the application of the doctrine, that there was a
time after the negligence occurred when defendant could have, and the injured person
could not have, averted the accident
• Must be shown that the person who allegedly had the last opportunity to avert the accident
was aware of the existence of the period or who with exercise of due care should have
been aware of it
o No application to a case where a person is to act instantaneously, and if the
injury can’t be avoided by using all means available after the peril is or should
have been discovered
• Effect on Right to Recover: An antecedent negligence of a person does not preclude the
recovery of damages for the supervening negligence of, or bar a defense against liability
sought by, another if the latter, who had the last fair chance, could have avoided the
impending harm by the exercise of due diligence
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• Note: Also called as Discovered Peril, Doctrine of Supervening Negligence, Humanitarian
Doctrine, Doctrine of Intervening Negligence, “Known Danger Rule” or “Rule of Davies v
Mann”
When not Applicable:
• When the proximate cause of the injury has been established
• Culpa contractual— where neither the contributory negligence of the plaintiff nor his last
clear chance to avoid the loss, would exonerate the defendant from liability
• When the party charged is required to act instantaneously, and if the injury cannot be
avoided by the application of all means at hand after peril is or should have been
discovered
• Does not arise where a passenger demand responsibility from the carrier to enforce its
contractual obligations
o This principle does not, however, apply when there is an abuse of a person's
right, or when the exercise of this right is suspended or extinguished pursuant
to a court order
o Indeed, in the availment of one's rights, one must act with justice, give their
due, and observe honesty and good faith
• The proper exercise of a lawful right cannot constitute a legal wrong for which an action
will lie, although the act may result in damage to another, for no legal right has been
invaded
• One may use any lawful means to accomplish a lawful purpose and though the means
adopted may cause damage to another, no cause of action arises in the latter's favor. An
injury or damage occasioned thereby is damnum absque injuria
• The courts can give no redress for hardship to an individual resulting from action
reasonably calculated to achieve a lawful means

Legal Injury Intentional Torts

• In order that the law will give redress for an act causing damage, that act must be not
only hurtful, but wrongful
• Requisite: Damage must be damnum et injuria or legal injury
• Requisites to Recover Damages:
o Right of action for a legal wrong inflicted by the defendant
o Damage resulting to the plaintiff therefrom
• Deliberate adoption of a course of action or means which is wrongful in relation to the
plaintiff or adoption of. course of action in order to cause a harmful end
• Actor desires to cause the consequences of his act or believes the consequences are
substantially certain to result from it
• The actor desires to cause consequences of his act, ro that he believes that the
consequences are substantially certain to result from it

Injury Damage Damages Intent

- Illegal invasion of a - Loss, hurt, or harm - Compensation • State of mind
legal right which results from the awarded for the • About consequences of an act or omission and not about the act itself
injury damage suffered • Extends not only to having in the mind a purpose to bring about given consequences but
also to having in mind a belief that given consequences are substantially certain to result
Legal Injury from the act
• In order that a plaintiff may maintain an action for the injuries of which he complains, he • How Proven: Usually by way of malice, bad faith or fraud
must establish that such injuries resulted from a breach of duty which the defendant • Bad Faith: Not simply bad judgment or simple negligence
owed to the plaintiff, and concurrence of injury to the plaintiff and legal responsibility by o Involves a dishonest purpose or some moral obloquy and conscious doing of a
the person causing it wrong, a breach of known duty to some motives or interest or ill will that
• The underlying basis for the award of tort damages is the premise that an individual was partakes of the nature of fraud
injured in contemplation of law o Elements of Bad Faith:
• Thus, there must first be the breach of some duty and the imposition of liability for that § Actor knew or should have known that a particular course of action is
breach before damages may be awarded; it is not sufficient to state that there should be wrong or illegal
tort liability merely because the plaintiff suffered some pain and suffering § Despite actual or imputable knowledge, the actor, voluntarily,
consciously and out of his own free will, proceeds with such course of
Damnum Absque Injuria action
• Under this principle, the legitimate exercise of a person's rights, even if it causes loss to • Fraud: All kinds of deception— whether through insidious machination, manipulation,
another, does not automatically result in an actionable injury. The law does not prescribe concealment or misrepresentation— that would lead an ordinarily prudent person into
a remedy for the loss error after taking the circumstances into account
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Intentional Tort Negligence
- Involves certainty of the - Negligence involves foreseeability of the risk
harm - Knowledge that is short of substantial certainty
Human Dignity
• Scope of Application: Intentional acts which fall short of being criminal offenses
o Fills in the gap in the law where a person who suffers injury because of a
wrongful act not constituting a crime is left without any redress
• Liability: Person responsible for the act
• Protected Rights:
o Prying into the privacy of another's residence;
o Meddling with or disturbing the private life or family relations of another;
o Intriguing to cause another to be alienated from his friends;
o Vexing or humiliating another on account of his religious beliefs, lowly station in
life, place of birth, physical defect, or other personal condition.
o Qualification: Not limited to the enumeration
• List of Punishable Acts:
1. The Right To Personal Dignity 4. The Right To Social Intercourse
2. The Right To Personal Security 5. The Right To Privacy
3. The Right To Family Relations 6. The Right To Peace Of Mind
• TLC: What is the favorite past time of Filipinos? Chismis
Right to Personal Dignity
• Violation of the right to personal dignity is analogous to the American law concept of
defamation
• Defamation: An invasion of a person's right to enjoy a reputation and good name
unimpaired by false attacks which tend to diminish the esteem in which a person is held
by men whose standard of opinion the court can properly recognize
o The reputation that is protected is the opinion of others
• General Rule: Malice on the part of the defendant need not be proved by the plaintiff
• Exception: Malice or ill will remain important where the exercise of a qualified privilege is
in question
Right to Personal Security
• A violation of the right to personal security is identical with the American intentional torts
of battery and assault.
• Battery: Actual and willful infliction of any unlawful or unauthorized violence on the
person of another, irrespective of its degree
o The interest protected by this action is the freedom from intentional and
unpermitted contacts with the plaintiff's person
o The term "person" includes any part of the body, or anything attached to it and
practically identified with it
o Accordingly, the slightest contact with the plaintiff's clothes or anything
attached to his person constitutes battery
o No harm or actual damage of any kind is required
• Assault: Intentional, unlawful offer of physical injury to another by force unlawfully
directed toward the person of another, under such circumstances as to create a well-
founded fear of imminent battery, coupled with the apparent present ability to effectuate
the attempt if not prevented
o The interest protected by this action is the freedom from apprehension of a
harmful or offensive contact with the person, as distinguished from the contact
itself
o No actual contact is necessary, and the plaintiff is protected against a purely
mental disturbance of his personal integrity
• The defendant must have intended to interfere with the plaintiff's personal integrity to
hold him liable for assault
o In short, he must have intended to bring about an assault or a batter
o Assault, therefore, cannot be committed through negligence. But the intent
need not be to inflict physical harm, it being sufficient that there is an intent to
arouse
Right to Privacy
• “Right to be left alone”
• The interference of the right, to be actionable, must be serious and outrageous, or
beyond the limits of common ideas of decent conduct.
• Invasion of the right of privacy involves four distinct types of tort:
o Intrusion upon the plaintiff's physical and mental solitude
o Public disclosure of private facts
o Placing the plaintiff in false light in the public eye
o Commercial appropriation of the plaintiff's name or likeness
• Note: The right of privacy does not prohibit the publication of materials which are of
legitimate public or general interest
• It has been frequently held that those who unwillingly court public attention become
reluctant public figures and "until they have reverted to the lawful and unexciting life led
by the great bulk of the community, they are subject to the privileges which publishers
have to satisfy the curiosity of the public as to their leaders, heroes, villains and victims.
Right to Peace of Mind
• Violation of the right to peace of mind under Art. 26 is akin to the American tort of
intentional infliction of mental distress (physical illness suffered by the plaintiff as a result
of the offensive words or act)
• However, the view that physical illness is immaterial in infliction of mental distress
appears to be applicable in this jurisdiction since Art. 26 itself creates a cause of action
for violation of the right to "peace of mind"
o Violation of the right in itself constitutes a legal injury sufficient to support the
action
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Dereliction of Duty
• Person Liable: Public Servant or Employee
• Punishable Act: Refusal or neglect, without just cause, to perform official duty
o Qualification: Good faith defense unavailable
§ An officer is under constant obligation to discharge the duties of his
office, and it is not necessary to show that his failure to act was due
to malice or willfulness
• Who may File: Person who suffered material or moral loss
• Qualification: Without prejudice to any disciplinary administrative action
• Requisites:
o Defendant is a public officer charged with a performance of a duty in favor of
the plaintiff
o He refused or neglected without just cause to perform the duty
o Plaintiff sustained material or moral loss as a consequence of such non-
performance
o The amount of such damages, if material
• TLC: Under administrative law a public officer has discretionary or ministerial functions
o What is mentioned in Art. 27 is ministerial functions
o If you are a public officer and refuse to perform ministerial duties and there is a
moral or material loss, there is liability (Not only for damages, but remember
the 3-Fold liability of public officers)
o What is an example? Register of Deeds who does not want to register the
property
Forms of Interference
• Alienation of Affection of Spouse: Depriving one spouse of the affection, society,
companionship and comfort of the other; interference with one spouse’s mental attitude
toward the other and the conjugal kindness of martial relations resulting in some actual
conduct which materially affects it
o Requisites:
§ Valid marriage
§ Wrongful conduct by the defendant with the plaintiff’s spouse
§ Loss of affection or consortium
§ Causal relation between the defendant’s conduct and the deprivation
of affection
• Wrongful act of defendant were the efficient cause
o Qualification: Alienation of Affection by In-Laws would require proof of malice;
parents enjoy a qualified privilege to interest themselves in the martial relations
§ Malice necessary if the defendant is not a relative of a spouse whose
affection was said to have been alienated
• Parent and Child: There is no prohibition against a child suing the parent; the child can
bring a tort action for injuries inflicted on him by the parent through excessive punishment
• Enticement: Parent may institute a tort action against a paerson who entices achild
away from home
Human Dignity— Personal Condition
• Scope of Application: Intentional acts which fall short of being criminal offenses
o Fills in the gap in the law where a person who suffers injury because of a
wrongful act not constituting a crime is left without any redress
• Liability: Person responsible for the act
• Protected Rights: Vexing or humiliating another on account of his religious beliefs, lowly
station in life, place of birth, physical defect, or other personal condition
• Emotional Distress: Any highly unpleasant mental reaction such as extreme grief,
shame, humiliation, embarrassment, anger, disappointment, worry, nausea, mental
suffering and anguish, shock, fright, horror and chagrin
o Requisites:
§ Conduct of the defendant was intentional or in reckless disregard of
the plaintiff
§ Conduct was extreme and outrageous
§ There was a causal connection between the defendant’s conduct and
the plaintiff’s mental distress
§ Plaintiff’s mental distress was extreme and severe
o Extreme and Outrageous Conduct: Conduct that is so outrageous in
character, and so extreme in degree, as to go beyond all possible bounds of
decency and to be regarded as atrocious and utterly intolerable in civilized
society
Human Dignity— Personal Condition
• Scope of Application: Intentional acts which fall short of being criminal offenses
o Fills in the gap in the law where a person who suffers injury because of a
wrongful act not constituting a crime is left without any redress
• Liability: Person responsible for the act
• Protected Rights: Intriguing to cause another to be alienated from his friends
• Intrigue: Implies malice or ill will, coupled with some scheme or secret plot to bring about
the desired purpose, that is, to alienate one from his friends
Art. 1314— Malicious Interference by Third Persons
• When a 3rd person may be liable under a contract
• There should be malice or a malicious inducement by the third person as a result of
which, the debtor does not comply with his obligation under the contract, which
necessarily implies that such third person has knowledge of the existence of the contract.
• Requisites:
o Existence of a valid contract
o Knowledge on the part of the third person of the existence of contract
o Interference of the third person is without legal justification or excuse
o Bad faith or malice on the part of the defendant
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Unfair Competition • How Applied:
• Where: Agricultural, Commercial or Industrial Enterprises o To be applied objectively as it depends on the factual circumstances of the case
• Requisites: o Not with reference to the personal judgment of the actor in the situation before
o Act of defendant causing losses or injury to plaintiff/rival him
o Act of defendant is contrary to good conscience or shocking to judicial o Law considers that would be reckless, blameworthy or negligent in the man of
sensibilities or otherwise unlawful ordinary intelligence and prudence and determines liability by that
o Could a prudent man, in the case under consideration, foresee harm as a result
Intellectual Property Code Civil Code of the course actually pursued
• Patent Is necessary • Patent is unnecessary § Civil Aeronautics Administration v CA: Foreseeability of the harm is an
indispensable requirement.
Negligence o Point of view of an ordinary person on how he/she would act on such situation
• The omission of that degree of diligence which is required by the nature of the obligation o So, you have to have an objective standard right? The objective standard is what
and corresponding to the circumstances of person, time and place would an ordinary prudent person would do in the same situation. But is that
• Omission to do something which a reasonable man, guided by those considerations which objective standard the same in all situations? Would an ordinarily prudent person
ordinarily regulate the conduct of human affairs, would do, or the doing of something which do exactly the same thing in all situations?
a prudent and reasonable man would do § What an ordinary prudent person would do is subjective. Why?
• Conduct which creates undue risk of harm to another, the failure to observe that degree of § Because it depends on the circumstances of the persons, time and
place
care, precaution and vigilance that the circumstance justly demands whereby that other
person suffers injury
Standard of Diligence Required
Negligence Fault • General Rule: Diligence stated in the agreement/contract
- Voluntary act or omission which causes - Failure to observe the protection of the • Default Rule: Good father of a family
damage to the right of another giving interest of another person that degree o Lesser in degree compared to extraordinary diligence required of common
rise to an obligation n the part of the of care, precaution and vigilance which carriers, diligence of good father of family may be likened to the requirement of
actor to repair such damage the circumstances justly demand ordinary diligence
- Requires the execution of a positive act - Omission to do acts which result in o The usual standard of care is such care as a prudent person would exercise
which causes damage to another damage to another under the circumstances of a particular case
• Factors to Be Considered:
Degrees of Negligence o Employment or occupation
o Degree of Negligence
• Slight Negligence: Failure to exercise great or extraordinary care
o Physical Condition
• Ordinary Negligence: Want of ordinary care and diligence, such care and diligence as an
o Other circumstances regarding persons, time and place
ordinarily prudent person would exercise under the same or similar circumstances
• Gross Negligence: Materially greater than ordinary negligence
Standard of Care
o Consists of an entire absence of care or an absence of even slight care or
Operators Because of the inherent differences between motorists and cyclists, the
diligence
of Motor former being capable of greater speed and destruction, operators of motor
o Thoughtless disregard for consequences or an indifference to the rights or
Vehicles vehicles have a higher standard in his duty of care
welfare of others
Banks Law imposes on banks high standards in view of the fiduciary nature of
banking (Higher than that of a good father of a family)
Test to Determine Existence of Negligence
Experts Those who undertake any work calling for special skills are required not
• Test: Did the defendant, in doing the alleged negligent act, use that reasonable care and
caution which an ordinarily prudent person would have used in the same situation? only to exercise reasonable care in what they do but also possess a
standard minimum of special knowledge and ability. In all employments
• Question as to what would constitute the conduct of a prudent man in a given situation
where peculiar skill is requisite, one who offers his services is understood
must of course be always determined in the light of human experience and in view of the
as holding himself out to the public as possessing the degree of skill
facts involved in the particular case
commonly possessed by others in the same employment
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Doctors Whether or not a physician has committed an ‘inexcusable lack of
precaution’ in the treatment of his patient is to be determined according to
the standard of care observed by other members of the profession in good
standing under similar circumstances bearing in mind the advanced state
of the profession at the time of treatment of present state of medical
science
Pharmacists Profession is one demanding care and skill. Even under the first
conservative expression, “ordinary care” with reference to the business of
a druggist must be held to signify “the highest practicable degree of
produce, thoughtfulness, and vigilance and most exact and reliable
safeguards consistent with the reasonable conduct of the business in
order that human life may not constantly be exposed to the danger flowing
from the substitution of deadly poisons for harmless medicine
Children Take into account the specific characteristic of the child in question The
conduct of an infant of tender years is not to be judged by the same rule,
which governs that of an adult. ...The care and caution required of a child
is according to his maturity and capacity only, and this is to be determined
in each case by the circumstances of the case
Jarco Marketing v CA: No contributory negligence can be imputed to
children below 9 years old
Emergency Rule/Sudden Peril
• General Rule: One who suddenly finds himself in a place of danger, and is required to
act without time to consider the best means that may be adopted to avoid the impending
danger, is not guilty of negligence, if he fails to adopt what subsequently and upon
reflection may appear to have been a better method
• Exception: Emergency in which he finds himself is brought about by his own negligence
Unreasonable Risk of Harm
• Negligence, as it is commonly understood, is a conduct that creates an undue risk of
harm to others
• However, in negligence, risk means a danger which is apparent, or should be apparent,
to one in the position of the actor
• Such type of risk is unreasonable risk. If such unreasonable risk results in injury to the
plaintiff, the latter can recover from the defendant
Burden of Proof
• Burden of proving negligence that is the proximate cause of the quasi delict is on the one
alleging the same
• The person alleging the negligence must prove the same
• What must be Proven:
o Facts constitutive of negligence
o Proximate Cause
• Quantum of Proof: Preponderance of Evidence
SECTION 3. Disputable Presumptions. — The following presumptions are satisfactory if
uncontradicted, but may be contradicted and overcome by other evidence:
(d) That a person takes ordinary care of his or her concerns;
Presumption of Negligence
• Driver presumed negligent if found guilty of reckless driving or violating traffic regulations
at least twice within the next preceding 2 months
• Simultaneous violation of traffic regulation = presumption of negligence
o Requisite: Casual connection between the injury received and the violation of
the traffic regulation
§ Tison v Sps. Tomasin: Must be proven that the violation of the traffic
regulation was the proximate or legal cause of the injury or that it
substantially contributed thereto
o When Presumption Inapplicable: Non-motorized vehicles
§ Rationale: Unequal footing of standards applicable to motor vehicles
as opposed to other types of vehciles
• Death/Injury with Dangerous Weapons/Substances
o General Rule: Presumption of negligence on the part of the defendant when
death or injury results from possession of dangerous weapons or substances
o Exception: Possession or use is indispensable in his occupation or business
• Presumed of Negligence of Common Carriers
o General Rule: Goods lost, destroyed or deteriorated are presumed to have
been at the fault of the common carrier, or presumed that the latter has acted
negligently
o Qualification: Common Carrier may rpove that it observed extraordinary
diligence
§ Effect: Will not be held liable
o Exception: When the presumption does not apply—
§ Flood, storm, earthquake, lightning, or other natural disaster or
calamity
§ Act of the public enemy in war, whether international or civil
§ Act or omission of the shipper or owner of the goods
§ Character of the goods or defects in the packing or in the containers;
§ Order or act of competent public authority
Res Ipsa Loquitur (“The thing speaks for itself”)
• Rebuttable presumption or inference that defendant was negligent, which arises upon
proof that instrumentality causing injury was in defendant’s exclusive control and that the
accident was one which ordinarily dos not happen in absence of negligence
• Basis of Doctrine: On the theory that the defendant either knows the cause of the accident
or has the best opportunity of ascertaining it and the plaintiff, having no knowledge thereof,
is compelled to allege negligence in general terms
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• Nature of Rule: Rule of evidence whereby negligence of alleged wrongdoer may be
inferred from mere fact that the accident happened
o Works on the presumption that the with absence of negligence the injury would
not have occurred
o It does not create or constitue an independent or separate ground of liablity
• When Invokable: When and only when, under the circumstances involved, direct evidence
is absent and not readily available
o Can’t be availed of, when plaintiff has knowledge and testifies or presents
evidence as to the specific act of negligence which is the cause of the injury
complained of or where there is direct evidence as to the precise cause of the
accident
• Finds application only in the laws of negligence
• All that plaintiff has to prove is the accident itself
• It must appear that the injured party had no knowledge as to the cause of the accident, or
that the party to be charged with negligence has superior knowledge or opportunity for
explanation of the accident
• Elements:
o Occurrence of an injury
o Thing Instrumentality which caused the injury, is within the exclusive control and
management of the defendant
o Occurrence was such that in the ordinary course of things, would not have
happened if those who had control or management used proper care
o Absence of explanation by the defendant
o That there is no contributory conduct on the part of the plaintiff
Damnum Absque Injuria
• No damage without injury in those instances in which the loss or harm was not the result
of a violation of a legal duty
• No legal wrong
Plaintiff’s Sole Negligence
• Negligence was the immediate and proximate cause of his injury
• Effect: Cannot recover damages
Doctrine of Contributory Negligence
• Negligence of Plaintiff only contributory + immediate and proximate cause is the
defendant’s lack of due care
• Contributory Negligence: Conduct on the part of the injured party, contributing as a
legal cause to the harm he has suffered, which falls below the standard which he is
required to conform for his own protection
• Effect: Plaintiff may recover damages (Partial Defense)
• Basis: A plaintiff who is partly responsible for his own injury should not be entitled to
recover damages in full but must bear the consequences of his own negligence
o Defendant must be held liable only for the damages actually caused by his
negligence
• Qualification: Courts to mitigate the damages to be awarded
o Amount: Each party is chargeable with damages in proportion to his fault
• Exception: Conclusive presumption that Children under 9 years of age are incapable of
contributory negligence

Defense of Persons Held Vicariously Liable (Art. 2180) Contributory Negligence Last Clear Chance
• Observance of the diligence of a good father of a family to prevent damage - Act or omission amounting to want of - Both parties are guilty of negligence,
• Diligence in the selection and supervision of his employees ordinary care on the part of the person but the negligent act of one succeeds
• When Available: Obligations extra-contractual and not ex contractu injured which, concurring with the that of the other by an appreciable
o Only in culpa aquiliana and not culpa contractual defendant’s negligence is the interval of time, the one who has the
proximate cause of the injury last reasonable opportunity to avoid
Acts of Public Officers - To hold a person as having contributed the impending harm and fails to do so
• Public officer is not liable for damages which a person may suffer arising from the just to his injuries, it must be shown that he is chargeable with the consequences,
performance of his official duties performed an act that brought about without reference to the prior
o Requisite: Within the scope of his assigned tasks his injuries in disregard of warnings or negligence of the other party [under
• When Liable: Damages he has caused in his/her personal capacity for acts done in bad signs of an impending danger to health the doctrine of last clear chance]
faith, which being outside the scope of his authority, are no longer protected by the and body.
immunity
Doctrine of Attractive Nuisance
Justifying Circumstances under the RPC • One who maintains on his premises dangerous instrumentalities or appliances of a
• Any person who acts in the fulfillment of a duty or in the lawful exercise of a right or office character likely to attract children in play, and who fails to exercise ordinary care to prevent
• Any person who acts in obedience to an order issued by a superior for some lawful children from playing therewith or resorting thereto, is liable to a child of tender years who
purpose is injured thereby, even if the child is technically a trespasser in the premises
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• When Inapplicable: Bodies of water, whether artificial or natural, in the absence of some
unusual condition or artificial feature other than the mere water and its location—there is
always the danger of drowning, and children form a very young age are told that these are
dangerous
Assumption of Risk (Volenti Non Fit Injuria Neques Dolus)
• “To which a person assents is not esteemed in law as injury”
• Refers to self-inflicted injury or to the consent to injury – which precludes the recovery of
damages by one who knowingly and voluntarily exposed himself to danger, even if he is
not negligent in doing so
• One who voluntarily assumes the risk may not later on ask for damages
• Includes: Instances where plaintiff participated in a dangerous sport, or joined a crowd of
spectators knowing that they were likely to become unruly, or submitted to beauty
treatment shops
o A person who is sui juris and participates in an athletic event, game or sport,
accepts the dangers inherent in the activity as far as are obvious or necessary
• Requisites:
o Plaintiff had actual knowledge of the danger
o He understood and appreciated the risk from the danger
o He voluntarily exposed himself to such risk
• When Rule Inapplicable:
o If an emergency is found to exist or if the life or property of another is in peril or
when he seeks to rescue his endangered property (Ilocos Norte v CA)
o Even if respondent Reyes assumed the risk of being asked to leave the party,
petitioners, under Articles 19 and 21 of the CC, were still under the obligation to
treat him fairly in order not to expose him to unnecessary ridicule and shame
(Nikko Hotel v Reyes)
Doctrine of Last Clear Chance
• Note: See Last Clear Chance Portion
Emergency Rule/Sudden Peril
• Note: See Standard of Care; Emergency Rule
Prescription
• Quasi-Delict: Within 4 Years
• Defamation: 1 Year
• Reckoning Point: Day the Quasi-Delict is committed
Fortuitous Event (Elements)
• 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
• It must be impossible to foresee the event or if it can be foreseen, it must be impossible
to avoid
• The occurrence must be such as to render it impossible for the debtor to fulfill his
obligation in a normal manner
• The obligor must be free from any participation in the aggravation of the injury resulting to
the creditor
Waiver
• Injured party waives his right to claim damages
Special Liability In Particular Activities
• While any person may be liable for a quasi- delict or tort, the law has also identified
specific individuals as being liable for particular types of injuries under certain conditions.
Products Liability; Manufacturers Or Processors
Products Liability/Enterprise Liability
• Who: Manufacturers and processors of foodstuffs, drinks, toilet articles and similar goods
• Responsible for death or injures are caused by noxious or harmful substances are used
o Covers any liability of a manufacturer or other seller of a product where personal
injury or damage to some other property is caused by a defect in the product
• Basis: Responsibility put upon one who sends goods out into the channels of trade for use
by others
• Am. Jur: Manufacturer is liable when an article he places in the market, knowing that it is
to be used without inspection for defect, proves to have a defect that causes injury to
human being
o Qualification: Doctrine relates only to defective and unreasonably dangerous
products and does not make a manufacturer or seller an insurer that no injury
will result from the use of his products nor does the doctrine mean that such a
manufacturer or seller is liable for any harm to anybody under the circumstances
• Requisites of liability
o Defendant is a manufacturer or possessor of foodstuff, drinks, toilet articles and
similar goods
o He used noxious or harmful substances in the manufacture or processing of the
foodstuff, drinks or toilet articles consumed or used by the plaintiff
o Plaintiff’s death or injury was caused by the product so consumed or used
o The damages sustained and claimed by the plaintiff and the amount thereof
Nuisance
Note: Another case similarly regarded as tort is nuisance. In the US, nuisance is considered a
property tort. But in the Philippines, nuisance is placed in different concept from quasi-delict
which is generally founded on negligence
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Nuisance Negligence • Freedom of suffrage;
- Whether the defendant’s use of his - Whether it was unreasonable for the • The right against deprivation of property without due process of law;
property was unreasonable to plaintiff, defendant to act as he did in view of • The right to a just compensation when private property is taken for public use;
without regard to foreseeability of the threatened danger or harm to one • The right to the equal protection of the laws;
injury in plaintiff’s position • The right to be secure in one's person, house, papers, and effects against unreasonable
- Person who creates/maintains a - Liability is based on a want of proper searches and seizures;
nuisance is liable for the resulting care • The liberty of abode and of changing the same;
injury to other regardless of the degree - Cause of action is for harm resulting • The privacy of communication and correspondence; cd
of care or skill exercised to avoid injury from one act which created • The right to become a member of associations or societies for purposes not contrary to
- Cause of action is for the continuing unreasonable risk of injury law;
harm caused by continuing or
• The right to take part in a peaceable assembly to petition the Government for redress of
recurrent acts which cause discomfort
grievances;
or annoyance to plaintiff
• The right to be free from involuntary servitude in any form; The right of the accused
against excessive bail;
Violation Of Constitutional Rights; Violation Of Civil Liberties
• The right of the accused to be heard by himself and counsel, to be informed of the nature
and cause of the accusation against him, to have a speedy and public trial, to meet the
Violation of Civil Liberties
witnesses face to face, and to have compulsory process to secure the attendance of
• Who is Liable: Public officer or employee, or private individual
witness in his behalf
o Exception: Not demandable from a judge
• Freedom from being compelled to be a witness against one's self, or from being forced to
§ Exception to this Exception: Act/Omission constitutes a crime
confess guilt, or from being induced by a promise of immunity or reward to make such
• Punishable Act: Directly or indirectly obstructs, defeats, violates or in any manner
confession, except when the person confessing becomes a State witness;
impedes or impairs the rights of another person
• Freedom from excessive fines, or cruel and unusual punishment, unless the same is
• Effect: Liable for damages
imposed or inflicted in accordance with a statute which has not been judicially declared
o Independent civil action (Tor for impairment of rights and liberties)
unconstitutional; and
o Includes moral and/or exemplary damages
• Freedom of access to the courts
• Qualification: Liable whether or not act constitutes a criminal offense
• Quantum of Evidence: Preponderance of evidence Violation Of Rights Committed By Public Officers
• Provides a sanction to rights and freedoms enshrined in the constitution
o Aberca v Ver: No man may seek to violate those sacred rights with impunity. In Liability of City or Municipal Police Force
times of great upheavel or of social and political stress, when the temptation is • Punishable Act: Refuses or fails to render aid or protection
strongest to yield o To any person in danger to life or property
• Not necessary that the public officer acted with malice or bad faith • Liability: Damages
o Cojuangco v CA: Even on the pretext of justifiable motives or good faith in the o Qualification: City/Municipality subsidiarily responsible
performance of one’s duties
• Civil action independent of any criminal proceeding
• Requisite for Liability: Violation of constitutional rights of the petitioner
• Quantum of Evidence: Preponderance of evidence
• Meralco v Spouses Chua: Art. 32 of the CC provides that moral damages are proper
when the rights of individuals, including the right against deprivation of property without Provinces, Cities And Municipalities
due process of law, are violated
Note: See Tortfeasor Portion
Protected Rights Owner Of Motor Vehicle
• Freedom of religion;
• Freedom of speech; Note: See Tortfeasor Portion
• Freedom to write for the press or to maintain a periodical publication;
• Freedom from arbitrary or illegal detention;
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Proprietor Of Building Or Structure Or Thing
Note: See Tortfeasor Portion
Head Of Family
Head of Family
• Who: Head of a family that lives in a building or a part thereof
• Responsible for damage from things thrown or falling form the same
• Purpose: To relieve the injured party of the difficulty of determining and proving who threw
the thing or what caused it to Fault, or that either was due to the fault or negligence of any
particular individual
o Lessee is considered as the head of the family
§ Enough that he lives there and has control over it
Violations Of Data Privacy
Right to Data Privacy
• Right of an individual not to have private information about himself disclosed, and to live
freely from surveillance and intrusion
• RA 10173, or the Data Privacy Act, protects individuals from unauthorized processing of
personal information that is (1) private, not publicly available; and (2) identifiable, where
the identity of the individual is apparent either through direct attribution or when put
together with other available information
SECTION 17. General Data Privacy Principles. — The processing of personal data shall be allowed, subject to
compliance with the requirements of the Act and other laws allowing disclosure of information to the public, and
adherence to the principles of transparency, legitimate purpose, and proportionality.
SECTION 18. Principles of Transparency, Legitimate Purpose and Proportionality. — The processing of personal data
shall be allowed subject to adherence to the principles of transparency, legitimate purpose, and proportionality.
a. Transparency. The data subject must be aware of the nature, purpose, and extent of the processing of his or her
personal data, including the risks and safeguards involved, the identity of personal information controller, his or her
rights as a data subject, and how these can be exercised. Any information and communication relating to the
processing of personal data should be easy to access and understand, using clear and plain language.
b. Legitimate purpose. The processing of information shall be compatible with a declared and specified purpose which
must not be contrary to law, morals, or public policy.
c. Proportionality. The processing of information shall be adequate, relevant, suitable, necessary, and not excessive
in relation to a declared and specified purpose. Personal data shall be processed only if the purpose of the processing
could not reasonably be fulfilled by other means.
SECTION 21. Principle of Accountability. — Each personal information controller is responsible for personal
information under its control or custody, including information that have been transferred to a third party for
processing, whether domestically or internationally, subject to cross-border arrangement and cooperation.
(a) The personal information controller is accountable for complying with the requirements of this Act and shall use
contractual or other reasonable means to provide a comparable level of protection while the information are being
processed by a third party.
(b) The personal information controller shall designate an individual or individuals w ho are accountable for the
organization's compliance with this Act. The identity of the individual(s) so designated shall be made known to any
data subject upon request.
SECTION 34. Extent of Liability. — If the offender is a corporation, partnership or any juridical person, the penalty
shall be imposed upon the responsible officers, as the case may be, who participated in, or by their gross negligence,
allowed the commission of the crime. If the offender is a juridical person, the court may suspend or revoke any of its
rights under this Act. If the offender is an alien, he or she shall, in addition to the penalties herein prescribed, be
deported without further proceedings after serving the penalties prescribed. If the offender is a public official or
employee and he or she is found guilty of acts penalized under Sections 27 and 28 of this Act, he or she shall, in
addition to the penalties prescribed herein, suffer perpetual or temporary absolute disqualification from office, as the
case may be.
SECTION 36. Offense Committed by Public Officer. — When the offender or the person responsible for the offense is
a public officer as defined in the Administrative Code of the Philippines in the exercise of his or her duties, an
accessory penalty consisting in the disqualification to occupy public office for a term double the term of criminal
penalty imposed shall be applied.
Right to be informed
• Personal data should never be collected, processed and stored by any organization
without the individual’s explicit consent, unless otherwise provided by law. Aside from
protecting against unfair means of personal data collection, this right also requires
personal information controllers (PICs) to notify individuals if their data have been
compromised, in a timely manner
Right to access
• This is the individual’s right to find out whether an organization holds any personal data
about them and if so, gain “reasonable access” to them. Through this right, organizations
may also be asked to provide a written description of the kind of information they have
about the individual as well as their purpose/s for holding them.
Right to object
• This right can be exercised if the personal data processing involved is based on consent
or on legitimate interest. When the individual objects or withholds consent, the PIC
should no longer process the personal data, unless the processing is pursuant to a
subpoena, for obvious purposes (contract, employer- employee relationship, etc.) or a
result of a legal obligation.
Right to erasure or blocking
• This is the right to suspend, withdraw or order the blocking, removal or destruction of
personal data. This right can be exercised upon discovery and substantial proof of the
following:
o Personal data is incomplete, outdated, false, or unlawfully obtained.
o It is being used for purposes the individual did not authorize.
o The data is no longer necessary for the purposes for which they were
collected.
o The individual has decided to withdraw consent or object to its processing,
and there is no overriding legal ground for its processing.
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o The data concerns information prejudicial to the data subject — unless Animals; Possessor And User Of An Animal
justified by freedom of speech, of expression, or of the press; or otherwise
authorized (by court of law) Strict Liability— Nuisance
o The processing is unlawful. • Who: Possessor of an animal or one who makes use of an animal
o The personal information controller, or the personal information processor, o Note: Not ownership
violated the rights of the data subject. • Responsible for damage which it may cause
o Qualification: Even if it escapes or is lost
Right to Damages • When Not Liable:
• The individual may claim compensation if they suffered damages due to inaccurate, o Damage caused by force majeure
incomplete, outdated, false, unlawfully obtained or unauthorized use of personal data, o Fault of the person who was injured
considering any violation of their rights and freedoms as data subject. o Act of third persons
• Vicious or tame animals are covered; wild or domestic
Right to File a Complaint • Those who possesses animals for his utility, pleasure or service must answer for the
• If individuals feel that their personal information has been misused, maliciously disclosed, damage which such animal may cause
or improperly disposed, or that any of their data privacy rights have been violated, they
have a right to file a complaint with the NPC. Products Liability; Consumer Act

Right to Rectify Products Liability

• This refers to the right to dispute and have corrected any inaccuracy or error in the data a • Who: Any Filipino or foreign manufacturer, producer and any importer
personal information controller (PIC) holds about the individual. The PIC should act on it • Liable for redress, independently of fault, for damages caused to consumers by defects
immediately and accordingly, unless the request is vexatious or unreasonable. Once resulting from—
corrected, the PIC should ensure that access and receipt of both new and retracted o Design
information. PICs should also furnish third parties with said information, should it be o Manufacture
requested by the data subject. o Construction
o Assembly and erections
Right to Data Portability o Formulas and handling and making up,
• This right assures that individuals remain in full control of their data. Data portability o Presentation or packing of their products
allows data subjects to obtain and electronically move, copy or transfer their data in a o Insufficient or inadequate information on the use and hazards thereof
secure manner, for further use. It enables the free flow of their personal information • Defective Product: When it does not offer the safety rightfully expected of it, taking
across the internet and organizations, according to their preference. This is important relevant circumstance into consideration:
especially now that several organizations and services can reuse the same date o Presentation of product
o Use and hazards reasonably expected of it
Strict Liability
o Time it was put into circulation
Strict Liability Tort When Tradesman, Seller Liable
• In this kind of tort, there is no intention to cause damage. Negligence is not necessary.
• Not possible to identify the manufacturer, builder or producer or importer
However, it is sufficient that the act cause injury to another
• Product is supplied without clear identification of the manufacturer, producer, builder or
• Liability without fault importer
• Acts which, though lawful, are so fraught with possibility of harm to others that the law • He does not adequately preserve perishable goods
treats them as allowable only on the terms of insuring the public against injury
• Regulates those activities that are useful and necessary but create abnormally dangerous Product and Service Imperfections
risks to society • Who: Suppliers od durable or nondurable consumer products
• Intention or negligence of the actor is not necessary, but the resulting injury is sufficient or • Grounds for Liability:
that it is enough that the law by reason of public policy, imposes liability upon the
defendant. This is akin to the principle of res ipsa loquitur
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o Imperfections in quality that render the products unfit or inadequate for • Supplier implicitly bound to use—
consumption for which they are designed or decrease their value o Adequate, new, original, replacement parts
o Those resulting from inconsistency with the information provided on the o Those that maintain the manufacturer’s technical specifications
container, packaging, labels or publicity messages/advertisement § Exception: Authorized to use otherwise by the consumer
• Nature of Liability: Jointly liable
• Remedies of Consumer:
o Imperfection must be corrected within 30 days
o Replace of the product by another of the same kind, in a perfect state of use
§ May be of a different kind, mark or model as long as the price
difference shall be supplemented or reimbursed by the party which
caused the damage
o Immediate reimbursement of the amount paid
o Proportionate price reduction

Product Quantity Imperfection

• Who: Suppliers
• Ground: Imperfections in the quantity of the product
o Net content less than indicated on the container, packaging, labeling or
advertisement
o In due regard for variations inherent thereto
• Nature of Liability: Jointly liable for imperfections in the quantity of the product
• Remedies of Consumer:
o Demand proportionate price
o Supplementing of weight or measure differential
o Replacement of the product by another of the same kind, mark or model, without
said imperfections
o Immediate reimbursement of the amount paid, with monetary updating without
prejudice to losses and damages

Service Quality Imperfection

• Who: Service supplier
• Grounds: Liable for any quality imperfections that—
o Render the services improper for consumption
o Decrease their value
o Those resulting from inconsistency with the information contained in the offer or
advertisement
• Remedies of Consumer:
o Performance without additional cost, when applicable
§ May be done by 3rd parties
o Immediate reimbursement of the amount paid
o Proportionate price reduction

Repair Service Obligation

• Services are provided for the repair of any product
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DAMAGES • In order that a plaintiff may maintain an action for the injuries of which he complains, he
must establish that such injuries resulted from a breach of duty which the defendant
A. General Considerations owed to the plaintiff
a. Classification • There must first be a breach of some duty and the imposition of liability for that breach
before damages may be awarded
Definition • Note: If damage results form a person’s exercising his legal rights, it is damnum absque
• Indemnity or reparation for the loss or injury sustained by the injured party so that he may injuria
be made whole and restored as nearly as possible to the position or condition he was in There may be cases where there can be damage without injury, and in such instances the
prior to the injury consequences must be borne by the injured party alone
• Pecuniary compensation, recompense, or satisfaction for an injury sustained, or as
otherwise expressed, the pecuniary consequences, which the law imposes for the breach Article 2197. Damages may be:
of some duty or the violation of some right
• Basis: Just Compensation; indemnity or reparation for the loss or injury sustained by the (1) Actual or compensatory;
(2) Moral;
injured party so that he may be made whole and restored as nearly as possible to the
(3) Nominal;
position or condition he was in prior to the injury (4) Temperate or moderate;
(5) Liquidated; or
When Allowed (6) Exemplary or corrective.
• Obligation to repair the damages exist whether done intentionally or negligently and
whether or not punishable by law • Damages: Harm done and what may be recovered
• Damage + Legal Injury o Measure of recovery
• Elements: • Injury: Wrongful or unlawful tortious act
o Right of action o Legal wrong to be redressed
o For a wrong inflicted by the defendant • Note: There may be damages without injury, and an injury without damages
o Damage resulting to the plaintiff • Janda v Lepanto Cons.: One who complies with a government promulgated rule can’t be
• Apportionment of Damages: Entire amount should be apportioned among all those held liable for damages that may be caused by other person
who cooperated in the crime • People v Verano: While the right to recover civil liability whether arising from an offense
o Those held guilty as principals shall have a bigger share than those adjudged or otherwise is available, still, where the waiver thereof was made in behalf of the minor
only as accessories heirs by a person who is not their judicial guardian, such waiver is ineffective if it lacks
judicial approval
Injury Damage Damages • Lim v De Leon: A prosecutor who orders the seizure of property alleged to be involved in
- Illegal invasion of a - Loss, hurt, or harm - Recompense or the crime without a search warrant is liable for actual damages (including atty’s fees),
legal right which results from the compensation awarded moral damages and exemplary damages
injury for the damage
suffered Classification of Damages
• According to Purpose
Damage v Injury o Adequate Reparation of Injury
• Damage: loss, hurt or harm which results from the injury § Compensatory Damages
o The recompense or compensation awarded for the damage suffered § Moral Damages
• Injury: Illegal invasion of a right o Vindication of a Right Violated: Nominal
o Less than Adequate Reparation: Moderate/Temperate
Damnum Absque Injuria o Deterring Future Violations: Exemplary
• “Damage without injury” • According to Manner of Determination
• The law affords no remedy for damages resulting form an act which does not amount to a o Conventional (Liquidated)
legal injury or wrong o Non-Conventional
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§ Statutory
§ Judicial
• General: Natural and necessary result of the wrongful act or omission asserted as the
foundation of liability
o Might accrue to any person similarly situated
o Includes those which follow as a conclusion of law from the statement of the
facts of the injury
o Need not be specially pleaded and may be embraced in the general plea for
“such other relief as may be deemed just and equitable under the premises”
• Special: Arise from the special circumstance, which, if properly pleaded, may be added
to the general damages which the law presumes or implies form the mere inasion of the
plaintiff’s rights
o Accrue to the particular individual by reason of the particular circumstances of
the case
o Have proximately resulted but do not always immediately result from the
breach and will not be implied by law
o Need to be specifically prayed for
b. Kinds Of Damages
i. Actual And Compensatory
Article 2199. Except as provided by law or by stipulation, one is entitled to an adequate
compensation only for such pecuniary loss suffered by him as he has duly proved. Such
compensation is referred to as actual or compensatory damages.
• Actual or Compensatory Damages: those recoverable because of pecuniary loss (in
business, trade, property, profession, job or occupation)
o Amount of loss must be proven with a reasonable degree of certainty
o Includes— the value of the loss suffered
§ Profits which were not obtained or realized
• Ramos v CA: Court rules on actual or compensatory damages generally assume that at
the time of litigation, the injury suffered as a consequence of an act of negligence, has
been completed and that the cost can be liquidated
Extent or Scope of Actual Damages
• Contracts and Quasi Contracts
o Obligor in Good Faith— Liable for all natural and probable consequences of
breach which the parties could have foreseen or could have reasonably
foreseen at the time the obligation was constituted
o Obligor in Bad Faith— Responsible for all damages which may be reasonably
attributed to the breach or non-performance
• Delicts and Quasi Delicts— All damages which are the natural and probable
consequence of the act or omission
o Increased or decreased according to aggravating or mitigating circumstances
Requisites to Recover
• There must be actual proof of loss
• Alleged and prayed for relief
• Injured party/claimant has the burden of proof of the damages suffered
o Prove actual amount of the loss
• Present the best evidence obtainable by the injured party
• Provided by law or stipulation
Necessity of Proof
• General Rule: Actual damages must be approved + the damages must possess at least
some degree of certainty
• Not necessary to prove exactly how this much
• When Actual Damages need Not be Proved:
o Liquidated damages had been previously agreed upon
o Damages other than actual
o In case loss is presumed as when a child or a spouse dies
o Forfeiture of bonds in favor of the government for the purpose of promoting
public interst or policy
o Minimum Wage Workers
§ Self-employed or Employee
o Death caused by a crime or contract of carriage
o Death = PHP 50,000
o Rape = PHP 100,000
• Radio Communications of the Philippines v Lantin: If because of a breach in a lease
contract, there is an award of compensatory damages, this award may be ordered
executed pending appeal, but not on award for moral or exemplatory
Article 2200. Indemnification for damages shall comprehend not only the value of the loss suffered,
but also that of the profits which the obligee failed to obtain.
2 Kinds of Actual or Compensatory Damage
• Losses suffered (damno vitando or daño emergente)
• Unrealized profits (lucro cesante)
o General Enterprises v Lianga bay Longgin: If there is basis for a reasonable
expectation that profits would have continued had there been no breach of
contract, indemnification for damages based on such expected profits
o Batong Buhay v CA: Damages by way of unrealized profits may not be
awarded in the absence of supporting evidence or merely on the basis of pure
assumption, speculation or conjecture. Speculative damages cannot be
recovered
o Hicks v Manila Hotel: Employer has duty to prove the earnings made or which
could have been earned during the unexpired period
Article 2201. In contracts and quasi-contracts, the damages for which the obligor who acted in good
faith is liable shall be those that are the natural and probable consequences of the breach of the
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obligation, and which the parties have foreseen or could have reasonably foreseen at the time the o Where income was not sufficiently prove à may be temperate
obligation was constituted. o Mercury Drug v Huang: The plaintiff need not be actually engaged in gainful
employment to recover damages due to loss or impairment of earning capacity.
In case of fraud, bad faith, malice or wanton attitude, the obligor shall be responsible for all damages In determining the amount of damages to be awarded, the Supreme Court
which may be reasonably attributed to the non- performance of the obligation.
considered the plaintiff’s age, probable life expectancy, the state of his health,
and his mental and physical condition before the accident. The court took into
Components of Actual Damages account [the plaintiff’s] outstanding abilities, and the possibility that he would
• Obligor in good faith is liable for damages that are— have enjoyed a successful professional career in banking
o Natural and probable consequences of the breach of the obligation o Pleyto v Lomboy: Testimonial evidence sufficies to establish a basis for which
o Those which the parties foresaw or could have reasonably foreseen at the time the court can make a fair and reasonable stimate of loss of earning capacity
the obligation was constituted • Loss or injury to business standing or commercial credit
• Obligor in bad faith is liable for the damages that may— be reasonably attributed to the o Should be proven with same standard of proof as other compensatory damages
non-performance of the obligation • Lameness is a permanent personal injury
• Interest • If a dancer’s leg is amputated, it is clear that recovery is proper
o Loan/Forbearance:
§ Stipulation Article 2207. If the plaintiff's property has been insured, and he has received indemnity from the
§ If no stipulation— legal interest (6%) insurance company for the injury or loss arising out of the wrong or breach of contract complained of,
o Other Obligation the insurance company shall be subrogated to the rights of the insured against the wrongdoer or the
§ From date of demand person who has violated the contract. If the amount paid by the insurance company does not fully
o From date of finality of judgment until fulfillment cover the injury or loss, the aggrieved party shall be entitled to recover the deficiency from the person
causing the loss or injury.
Article 2203. The party suffering loss or injury must exercise the diligence of a good father of a family
to minimize the damages resulting from the act or omission in question. • If the plaintiff receives money from the insurance company, he may recover from the
guilty party only the deficiency (unjust enrichment)
• Del Castelvi v Comapnia Gen. De Tabacos: Prudent men must minimize the damage • The insurer shall be subrogated to the rights of the injured party
done to them by others
• The person sued has the burden of proving that the victim could have mitigated the ARTICLE 2208. In the absence of stipulation, attorney's fees and expenses of
damage litigation, other than judicial costs, cannot be recovered, except: …

ARTICLE 2204. In crimes, the damages to be adjudicated may be respectively increased or lessened Atty’s Fees
according to the aggravating or mitigating circumstances. • General Rule: Not awarded as part of damages
• No premium should be placed on the right to litigate
Article 2205. Damages may be recovered: • Exceptions:
o Stipulated in the contract
(1) For loss or impairment of earning capacity in cases of temporary or
§ Exception to this Exception: Even without stipulation, in Art. 2208
permanent personal injury;
(2) For injury to the plaintiff's business standing or commercial credit. o Where there is showing of bad faith in the parties’ persistence of a case
• Court has discretion how much, considering the following—
Damages to Earning Capacity and to Business o Must be reasonable (must have bearing on the importance of the subject
• Loss or impairment of earning capacity in cases of temporary or permanent matter in controversy
personal injury o Extent of the services rendered
2 o Professional standing of the lawyer
Life expectancy = (80 − age at time of death) • Reason for awarding must be stated and mere inclusion in the dispositive portion is not
3
Net earning capacity enough
= Life Expectancy x (Gross Annual Income • In Labor Cases— withholding of wages of wages = 10% of the amount of wages
− Reasonable and Necessary living Expenses) recovered
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Attorney’s Fees, Expenses for Litgation, Other Judicial Costs o No contrary stipulation
• When exemplary damages are awarded; • Loan/Forbearance:
• When the defendant's act or omission has compelled the plaintiff to litigate with third o Stipulation agreed upon
persons or to incur expenses to protect his interest; o If no stipulation— legal interest (6%)
• In criminal cases of malicious prosecution against the plaintiff; • Other Obligation
• In case of a clearly unfounded civil action or proceeding against the plaintiff; o From date of demand
• Where the defendant acted in gross and evident bad faith in refusing to satisfy the • From date of finality of judgment until fulfillment
plaintiff's plainly valid, just and demandable claim; • Discretionary Interest: Breach of Contract
• In actions for legal support; ARTICLE 2211. In crimes and quasi-delicts, interest as a part of the damages may, in a proper case,
• In actions for the recovery of wages of household helpers, laborers and skilled workers; be adjudicated in the discretion of the court.
• In actions for indemnity under workmen's compensation and employer's liability laws;
• In a separate civil action to recover civil liability arising from a crime; Interest in Crimes and Quasi-Delicts
• When at least double judicial costs are awarded • Interest as part of damages
• In any other case where the court deems it just and equitable that attorney's fees and • Court Option: Award interest
expenses of litigation should be recovered
ARTICLE 2212. Interest due shall earn legal interest from the time it is judicially demanded, although
Kinds of Atty’s Fees the obligation may be silent upon this point. (1109a)
• Ordinary: Reasonable compensation paid to a lawyer for his services
• Extraordinary: Awarded to a successful litigant; to be paid by the losing part as Interest on Interest
indemnity for damages • Requisite: Judicial Demand
• Even if obligation is silent upon this point
Quirante v IAC
• Attorney’s fees in CC 2208 is an award made in favor of the litigant, not of his counsel, ARTICLE 2213. Interest cannot be recovered upon unliquidated claims or damages, except when the
and the litigant is the judgment creditor who may enforce the judgment for attorney's fees demand can be established with reasonable certainty.
by execution
• General Rule: No interest on unliquidated damages
Briones v Macapagal • Exception: Demand is established with reasonable certainty
• Attorney’s fees and expenses of litigation are recoverable only in the concept of actual
damages, not as moral damages nor judicial costs ARTICLE 2214. In quasi-delicts, the contributory negligence of the plaintiff shall reduce the damages
• Hence, such must be specifically prayed for and may not be deemed incorporated within that he may recover.
a general prayer for "such other relief and remedy as this court may deem just and
equitable Contributory Negligence
• Where: Quasi-Delicts
ARTICLE 2209. If the obligation consists in the payment of a sum of money, and the debtor incurs in • Effect: Contributory negligence of plaintiff shall reduce damages that may be recovered
delay, the indemnity for damages, there being no stipulation to the contrary, shall be the payment of
the interest agreed upon, and in the absence of stipulation, the legal interest, which is six per cent Article 2215. In contracts, quasi-contracts, and quasi-delicts, the court may equitably mitigate the
per annum. (1108) damages under circumstances other than the case referred to in the preceding article, as in the
following instances:
ARTICLE 2210. Interest may, in the discretion of the court, be allowed upon damages awarded for
breach of contract. (1) That the plaintiff himself has contravened the terms of the contract;
(2) That the plaintiff has derived some benefit as a result of the contract;
Interest (3) In cases where exemplary damages are to be awarded, that the defendant acted upon the advice
• Requisites to Award Interest: of counsel;
(4) That the loss would have resulted in any event;
o Obligation consists in the payment of money
o Debtor in Delay
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(5) That since the filing of the action, the defendant has done his best to lessen the plaintiff's loss or
injury.
• Court may equitably mitigate the damages under the circumstances other than in the
case of contributory negligence
• Examples:
o Plaintiff himself has contravened the terms of the contract
o Plaintiff has derived some benefit as a result of the contract
o Cases where exemplary damages are to be awarded
o Loss would have resulted in any event
o Since the filing of the action, the defendant has done his best to lessen he
plaintiff’s loss or injury
o Note: List is non-exhaustive
Other Kinds of Damages
Article 2216. No proof of pecuniary loss is necessary in order that moral, nominal, temperate,
liquidated or exemplary damages, may be adjudicated. The assessment of such damages, except
liquidated ones, is left to the discretion of the court, according to the circumstances of each case.
• No pecuniary loss needed for moral, nominal, temperate, liquidated or exemplary
damages
o Still important that plaintiff prove the existence of the factual basis of the
damages and its causal relation to the defendant’s act
o Note: Moral damages are awarded not to punish but to compensate, so there
must still be factual basis other than the injurious act
• Court has discretion to award according the circumstances of each case
o Except liquidated
• AMP: What does liquidated mean? Determined; calculated already
ii. Moral
SECTION 1
Moral Damages
Article 2217. Moral damages include physical suffering, mental anguish, fright, serious anxiety,
besmirched reputation, wounded feelings, moral shock, social humiliation, and similar injury. Though
incapable of pecuniary computation, moral damages may be recovered if they are the proximate
result of the defendant's wrongful act for omission.
• Physical suffering, mental anguish, firght, serious anxiety, besmirched reputation,
wounded feelings, moral shock, social humiliation and similar injury
• Francisco v Ferrer: To recover moral damages, it must be proven that the guilty party
acted in bad faith
o American Express International v Alejandrino: While petitioner was not in bad
faith, its negligence caused the private Respondent to suffer mental anguish,
serious anxiety, embarrassment and humiliation, for which he is entitle to
recover reasonable moral damages
• Requisites for Recovery:
o There must be physical suffering, mental anguish, fright, etc.
§ Mental Anguish: high degree of mental suffering and not a mere
disappointment or regret or from annoyance or vexation
§ Fright: a form of mental suffering
o Pleading of moral suffering, mental anguish, fright and the like
o Suffering must be the proximate result of the wrongful act or omission
o There must be clear testimony on the anguish, etc
§ Showing of factual basis of damage
• Exception to Pleading and Proof:
o Death
o Rape
o Murder/Homicide
• Aguilar v Commercial Savings Bank: The registered owner of any vehicle, even if not
used for public service, would primarily be responsible to the public or to third persons for
injuries caused the latter while the vehicle was being driven on the highways or streets
• General Rule: Moral damages are not awarded to a corporation it being an artificial
person and having existence only in legal contemplation, it has no feelings, no emotions,
no senses
o People v Manero: It is only when a juridical person has a good reputation that
is debased, resulting in social humiliation, that moral damages may be
awarded
o Note: Manero is considered to be an obiter dictum
• Domingding and Aranas v Ng: Social and financial standing may be considered in the
computation of moral damages
• Moral damages are not intended to enrich a complainant at the expense of defendant
• Court has discretion to set the amount of moral damages to be awarded
o AMP: You must still prove the anguish but it will be impossible to give an
amount
ARTICLE 2218. In the adjudication of moral damages, the sentimental value of property, real or
personal, may be considered.
ARTICLE 2219. Moral damages may be recovered in the following and analogous cases: …
The parents of the female seduced, abducted, raped, or abused, referred to in No. 3 of this article,
may also recover moral damages.
The spouse, descendants, ascendants, and brothers and sisters may bring the action mentioned in
No. 9 of this article, in the order named.
When Moral Damages can be Recovered
• A criminal offense resulting in physical injuries
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o Caused by a crime or quasi-delict o Not because of the breach of the promise to marry
o People v Villaver: “Physical Injuries” include death § Because of the fraud and deceit behind it and the willful injury to her
o People v Villarmea: Moral damages are awarded despite the absence of proof honor and reputation which followed thereafter
of mental and emotional suffering of the victim’s heirs since a violent death • Should have been committed in a manner contrary to
necessarily brings about emotional pain and anguish on the part of the victims morals, good customs or public policy
family
• Quasi-delicts causing physical injuries Corporations
• Seduction, abduction, rape, or other lascivious acts • General Rule: No moral damages may be awarded
o People v Bartolini: The award of moral damages in a conviction for simple rape o A corporation is an artificial person and having existences only in legal
should equal the award of moral damages in convictions for qualified rape. contemplation, it has no feelings, no emotions, no senses
Truly, [the victim’s] moral suffering is just as great as when her father who • Exception: Libel slander or any other form of defamation
raped her is convicted for qualified rape as when he is convicted only for simple
rape due to a technicality Example: Breach of contract of carriage where passenger dies
o People v Abadies: Multiple counts of rape and other lascivious acts = moral • Indemnity for death
damages for each count of AOL and rape • Actual damages
• Adultery or concubinage • Moral damages
• Illegal or arbitrary detention or arrest • Exemplary damages
• Illegal search • Attorney’s fees
• Libel, slander or any other form of defamation • Compensation for loss of earning capacity
• Malicious prosecution
o Mijares v CA: Moral damages cannot be recovered from a person who has filed Who may Recover
a complaint against another in good faith, or without malice or bad faith. If • Plaintiff/Injured Party
damage results from the filing of the complaint, it is damnum absque injuria o General Rule: If a person is not himself physically hurt, he can’t obtain moral
• Acts mentioned in article 309 damages
• Acts and actions referred to in articles 21, 26, 27, 28, 29, 30, 32, 34, and 35 § Mere sympathy for a close relative’s physical injuries can’t grant
• Culpa Contractual Cases moral damages to the sympathizer, even if he also suffers mental
o General Rule: Moral damages not recoverable anguish, as a result of such sympathy
o Exception: Bad faith or Gross Negligence or Wanton disregard of contractual o Exceptions:
obligations § Acts mentioned in article 309
o Common carriers: § Acts and actions referred to in articles 21, 26, 27, 28, 29, 30, 32, 34,
§ Automatic where a passenger dies and 35
§ Acted with fraud of bad faith • Spouse, legitimate and illegitimate descendants and ascendants of the deceased may
• Culpa Aquiliana Cases demand moral damages for mental anguish by reason of the death of the deceased
o Act or omission causes physical injuries • Corporation (Filipinas Broadcasting v Ao)
o Defendant is guilty of intentional tort
• Breach of Promise to Marry Article 2220. Willful injury to property may be a legal ground for awarding moral damages if the court
o General Rule: Not actionable should find that, under the circumstances, such damages are justly due. The same rule applies to
o Exception: Plaintiff has actually incurred expenses for the wedding and the breaches of contract where the defendant acted fraudulently or in bad faith.
necessary incidents thereto
o Where the promise to marry was just for the girl to giver herself unto him in a • Willful injury, fraud or bad faith in breaches of contract = moral damages
sexual congress, and that he had in reality no intention of marrying her and that
the promise was only a subtle scheme or deceptive device to entice or inveigle
her to accept him and to obtain her consent to the sexual act, the act could
justify award pursuant to Art. 21 Visayan Sawmill v CA
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• Moral damages are emphatically not intended to enrich a complainant at the expense of
the defendant
• Its award is aimed at the restoration, within the limits possible, of the spiritual status quo
ante, and it must be proportional to the suffering inflicted
Miranda-Ribaya v Bautista
• Failure to use the precise legal terms or "sacramental phrases" of "mental anguish, fright,
serious anxiety, wounded feelings or moral shock" does not justify the denial of the claim
for damages
• It is sufficient that these exact terms have been pleaded in the complaint and evidence
has been adduced
iii. Nominal
Article 2221. Nominal damages are adjudicated in order that a right of the plaintiff, which has been
violated or invaded by the defendant, may be vindicated or recognized, and not for the purpose of
indemnifying the plaintiff for any loss suffered by him.
• Nominal Damages: so that a right violated or invaded may be vindicated or recognized
o Not for the purpose on indemnifying plaintiff for any loss suffered by him
• Requisites
o Invasion or violation of any legal or property right
o No proof of loss is required
o Award is to vindicate the right violate
• Rules of Non-Concurrence With other Kinds of Damages
o Actual/Compensatory
o Exemplary
• Nominal damages can’t co-exist with compensatory damages, nor actual damages
o When the court awards compensatory and exemplary damages, this in itself is
already the recognition the plaintiff’s rights have been violated
• Sumalpong v CA: Whenever there has been a violation of an ascertained legal right,
although no actual damages resulted or non are shown, the award of nominal damages
is proper
• Amount: Assessment is left to the discretion of the trial court according to the
circumstances of the case
Twin Ace v Rufina
• When the plaintiff suffers injury not enough to warrant an award of actual damages, then
nominal damages may be given
Areola v CA
• Nominal damages may also be awarded where there has been a breach of contract and
no substantial injury or actual damages whatsoever have been or can be shown
Article 2222. The court may award nominal damages in every obligation arising from any source
enumerated in article 1157, or in every case where any property right has been invaded.
• Where Awarded: In all sources of obligations
• Assessment of nominal damages is left to the discretion of the court, according to the
circumstances of the case
• Ventanilla v Centeno: An award of nominal damages precludes the recovery of actual,
moral, temperate or moderate damages
ARTICLE 2223. The adjudication of nominal damages shall preclude further contest upon the right
involved and all accessory questions, as between the parties to the suit, or their respective heirs and
assigns
iv. Temperate
Article 2224. Temperate or moderate damages, which are more than nominal but less than
compensatory damages, may be recovered when the court finds that some pecuniary loss has been
suffered but its amount can not, from the nature of the case be proved with certainty.
ARTICLE 2225. Temperate damages must be reasonable under the circumstances.
• Temperate/Moderate: More than Nominal but less than Actual
o There are cases where from the nature of the case, definite proof of pecuniary
loss can’t be offered, although the court is convinced that there has been such
loss (injury to commercial credit or goodwill of a business firm)
• Requisites:
o Actual existence of pecuniary loss
o The nature and circumstances of the loss prevent proof of the exact amount
o They are more than nominal and less than actual
o Causal connection between the loss and the defendant’s act or omission
o Amount must be reasonable
• Some pecuniary loss must be suffered; even if the damage is physical, the fact that the
same is incapable of pecuniary estimation does not preclude the right to an indemnity
• Temperate damages can and should be awarded on top of actual or compensatory
damages in instances where the injury is chronic and continuing
When Temperate Damages can be Awarded
• Nature of the case prevents determination of actual loss
o Example: Injury to one’s commercial credit or to the goodwill of a business firm
• In addition to civil indemnity
• Cases where amount of loss is not proven
o Pleno v CA: Court awarded temperate damages in lieu of actual damages for
loss of earning capacity where earning acapacity is plainly established but no
evidence was presented
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• In addition to other actual damages proven when there is a chronic and continuing injury
involved
• People v Jugueta: When no documentary evidence of burial or funeral expenses is
presented in court, the amount of PHP 50,000 as temperate damages shall be awarded
v. Liquidated
Article 2226. Liquidated damages are those agreed upon by the parties to a contract, to be paid in
case of breach thereof.
• Conventional or agreed upon in the contract
• Concept of liquidated damages and penalty are the same
• Does not require proof of actual damages
• Requisites
o Must be stipulated in the contract
o The breach of contract committed must be the one contemplated by the parties
in agreeing upon the liquidated damages
§ If not the same ground— law to determine the measure of damages
• AMP: These are considered as obligations with a penal clause
o Why would the Courts like these kinds of clauses? Because with liquidated
damages there is no proof needed, just the fact of breach
Proving Liquidated Damages
• No proof of loss is necessary in order that such liquidated damages may be recovered
• A stipulation for liquidated damages is intended to obviate controversy on the amount of
damages
• No need to prove the amount of actual damages
ARTICLE 2227. Liquidated damages, whether intended as an indemnity or a penalty, shall be
equitably reduced if they are iniquitous or unconscionable.
Amount
• Amount stipulated in the contract
• Judge shall equitably reduce when the principal obligation has been partly or irregularly
complied with by the debtor
• Even if there has been no performance, the penalty may also be reduced by the courts if
it is iniquitous or unconscionable
ARTICLE 2228. When the breach of the contract committed by the defendant is not the one
contemplated by the parties in agreeing upon the liquidated damages, the law shall determine the
measure of damages, and not the stipulation.
• Breach of Contract not the one contemplated by the parties
• Effect: Law will determine measure of damages
vi. Exemplary
Article 2229. Exemplary or corrective damages are imposed, by way of example or correction for the
public good, in addition to the moral, temperate, liquidated or compensatory damages.
• To make an example of or correction for the public good
o Imposed primarily on the wrongdoer as a deterrent in the commission of similar
acts in the future
• In addition to moral, temperate, liquidated or compensatory
o Without any of these, there may be no Exemplary damages
o Note: Exemplary and Nominal damages can’t co-exist
• Requisites
o Imposed by way of example or correction only
§ In addition to compensatory damages
§ Can’t be recovered as a matter of right
o Must first establish his right to moral, liquidated, temperate, or compensatory
damages
§ Fact of exemplary damages cannot be proved itself, because of its
nature
§ It is always connected to MTLC damages
o Wrongful act must be accompanied by bad faith
o Allowed only if the guilty part acted in a wanton, fraudulent reckless, oppressive
or malevolent manner
• Grant of exemplary damages is discretionary—may be granted even if not expressly
pleaded or prayed for
o Would be better to specifically pray for Exemplary damages, but it may fall
under “Other remedies which may be just and equitable”
• Required by public policy for wanton acts must be suppressed
• Exemplary damages may be imposed only when the crime is committed with one or more
aggravating circumstances
• AMP: Is evidence needed to establish exemplary damages? What about to establish the
amount?
o Evidence is needed to establish, but no longer needed for the amount
ARTICLE 2230. In criminal offenses, exemplary damages as a part of the civil liability may be
imposed when the crime was committed with one or more aggravating circumstances. Such
damages are separate and distinct from nes and shall be paid to the offended party.
ARTICLE 2231. In quasi-delicts, exemplary damages may be granted if the defendant acted with
gross negligence.
Exemplary Damages in the Different kinds of Obligations
• Criminal— Imposed when the crime is committed with one or more aggravating
circumstances
o Where an aggravating circumstance is not alleged
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o The award is part of the civil liability and not of the penalty Common Provisions Rules
• Quasi-Delict— Defendant is shown to have been so guilty of gross negligence as to
approximate malice
Damages that May Co-Exist
Article 2232. In contracts and quasi-contracts, the court may award exemplary damages if the • Actual/Compensatory, Moral, Temperate/Moderate, Exemplary
defendant acted in a wanton, fraudulent, reckless, oppressive, or malevolent manner.
Damages that Can’t Co-Exist
• Where: Contracts and Quasi-Contracts • Nominal and Actual/Compensatory
• Wanton, fraudulent, reckless, oppressive or malevolent manner • Nominal and Exemplary
• Munsayac v de Lara: Exemplary damages punishes the intent, which can’t be so easily • Nominal and Moderate/Temperate
presumed on the part of an employer merely. Because of the wanton, oppressive, or
malicious intent on the part of the agent Exemplary Damages in Contracts and Quasi-Contracts
• Wanton, Fraudulent, Reckless, Oppressive or Malevolent manner
ARTICLE 2233. Exemplary damages cannot be recovered as a matter of right; the court will decide
whether or not they should be adjudicated. cdt Damages Where Amount Need Not be Proved
• Exemplary
• General Rule: Cannot be recovered as a matter of right • Moral
• Requisite to Recover: Court discretion • Nominal
• Temperate/Moderate
Article 2234. While the amount of the exemplary damages need not be proved, the plaintiff must
show that he is entitled to moral, temperate or compensatory damages before the court may consider
the question of whether or not exemplary damages should be awarded. In case liquidated damages Amount of Damages Subject to Court Discretion
have been agreed upon, although no proof of loss is necessary in order that such liquidated • Exemplary
damages may be recovered, nevertheless, before the court may consider the question of granting • Moral
exemplary in addition to the liquidated damages, the plaintiff must show that he would be entitled to • Nominal
moral, temperate or compensatory damages were it not for the stipulation for liquidated damages. • Temperate/Moderate

• Amount of exemplary damages need not be alleged and proved Doctrine of Avoidable Consequences
o AMP: Why not? (Answer is immediately below, I think) • A party cannot recover damages flowing form the consequences which the party would
• Note: Exemplary damages is never a stand alone form of award but always concurring reasonably have avoided
with moral, temperate or compensatory
• Prove firs that you may recover moral, temperate or compensatory damages Contributory Negligence
o Applies also to liquidated damages (where no proof of loss is necessary)— • Contributory negligence of the plaintiff shall reduce the damages that he may recover
must show that plaintiff would be entitled to moral, temperate or compensatory • Note: No contributory negligence in crimes
damages were it not for the stipulation for liquidated damages
Judgment on the Pleadings
Article 2235. A stipulation whereby exemplary damages are renounced in advance shall be null and • Court can’t take judgment on the pleadings on claims for damages
void.
• Rule stands even if the allegations of damages have not been specifically denied by the
defendant
• A waiver of any future exemplary damages = void
• AMP: A Waiver of past exemplary damages is however, valid Damages in Case of Death
• Cause of Death: Crime or Quasi Delict
• Amount: At least PHP 3,000 even if there be mitigating circumstances
• Loss of Earning Capacity à Paid to the heirs of the deceased
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o Exception: Deceased had not earning capacity at time of death on account of
a permanent physical disability not caused by defendant
• Demand of Support from Person Causing Death
o Who: Recipient who is not an heir called to the decedent’s inheritance by
testate or intestate succession
o Requisite: Deceased was obliged to give support
o Duration of Support: Period not exceeding 5 years (to be fixed by court)
• Moral Damages
o Who: Spouse, Legitimate/Illegitimate Descendants and Ascendants of the
deceased
o Requisite: Mental anguish by reason of the death of the deceased
• Other Damages
o Exemplary Damages
§ Requisite: Crime attended by one or more aggravating
circumstances
o Atty’s Fees and Costs of Litigation
§ Actual amount thereof
o Interests in the proper cases
Rape
• Civil indemnity (Actual Damages) awarded upon the finding of fact of rape
• People v Apattad: The principal consideration for the award of damages is not the public
penalty imposed upon the offender, but based on the heinousness of the offense of a
crime against chastity
Duty of Injured Party
• Who: Party suffering loss or injury
• Duty: Exercise the diligence of a good father of a family
o Purpose: Minimize the damages resulting from the act or omission in question
Crimes
• Increased or lessened according to the aggravating or mitigating circumstances
• 3 Kinds of Damages Generally Awarded in Criminal Cases:
o Civil Indemnity: Indemnity authorized in criminal law for the offended party, in
the amount authorized by prevailing judicial policy
§ Separate and distinct from other proven actual damages
§ Art. 100, RPC— Every person criminally liable is also civilly liable
o Moral Damages
§ Considered and allowed for resulting pain and suffering, and for
humiliation, indignity, and vexation suffered by the plaintiff as result of
his or her assailant's conduct, as well as the factors of provocation,
the reasonableness of the force used, the attendant humiliating
circumstances, the sex of the victim and mental distress
o Exemplary Damages
o Temperate Damages: Awarded as it cannot be denied that the heirs of the
victims suffered pecuniary loss although the exact amount was not proved
§ No documentary evidence for burial and funeral expense—
• PHP 50,000 as temperate damages
Quasi Delicts
• Contributory negligence of plaintiff will reduce the damages he may recover
• Grounds For Mitigation Of Damages For Quasi-Delicts:
o Loss would have resulted in any event because of the negligence or omission
of another, and where such negligence or omission is the immediate and
proximate cause of the damage or injury
o Defendant has done his best to lessen the plaintiff’s injury or loss
o Plaintiff himself has contravened the terms of the contract
o Plaintiff has derived some benefit as a result of the contract
o Defendant acted upon advice of counsel in cases where exemplary damages
are to be awarded
o Defendant has done his best to lessen the plaintiff’s injury or loss
o Where exemplary damages are to be awarded, that the defendant acted upon
the advice of counsel
o That the loss would have resulted in any event
• Note: Different from when the plaintiff’s
Contracts and Quasi-Contracts
• Option of Court:
o Equitably reduce/mitigate the damages to be awarded
o Impose Interest upon damages awarded for breach of contract
• Grounds to Reduce/Mitigate Damages:
o For Contracts:
§ Plaintiff himself has contravened the terms of the contract
§ Plaintiff has derived some benefit as a result of the contract
§ Defendant acted upon advice of counsel in cases where exemplary
damages are to be awarded
§ Defendant has done his best to lessen the plaintiff’s injury or loss
o For Quasi-Contracts:
§ Where exemplary damages are to be awarded, that the defendant
acted upon the advice of counsel
§ That the loss would have resulted in any event
§ Defendant has done his best to lessen the plaintiff’s loss or injury
Liquidated Damages
• Reduced when iniquitous or unconscionable
• Whether intended as indemnity or penalty
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Compromise may be fixed by the court as long as the factual basis for damages is
• Courts may mitigate the damages to be paid by the losing party who has shown a sincere desire established
for a compromise d. Client will get less than Actual damages but more than nominal damages

AMPIL LECTURE

ISSUES RE: DAMAGES

1. Factual basis for the award of damages

2. How much Shall be awarded

1. Actual Damages—
a. Reimbursement of expenses or Loss of earnings or unrealized profits
b. Memorize formula for Life Expectancy
c. Interest and Attorney’s Fees is a Form of actual damages
i. Legal expenses what the client had to spend— Client asking the
court for reimbursement for such expenses
2. Moral Damages—
a. Not reimbursement but compensation for wounded feelings, moral
sufferings, etc
i. Needs to be proved with evidence and established
b. The wounded feelings can be rebutted
c. The amount need not be established and prove since it is fixed by the court
d. Compensate a person for feelings/emotions
e. General Rule: Corporations are not granted moral damages
i. Exception: Loss of Good will and credit standing
3. Exemplary Damages—
a. Needs evidence to prove and establish the wanton, fraudulent, reckless,
oppressive or malevolent act
b. Amount is left to the court’s discretion
c. Punitive (punishment) to set an example to the public
d. General Rule: Only the driver is liable for Exemplary Damages
e. Exception: If the common carrier ratified/authorized the act that forms the
basis for exemplary damages
4. Nominal Damages—
a. When there is nothing to reimburse and no compensation for
feelings/emotions
b. But the court wants to recognize that the right was violated
5. Temperate/Moderate Damages—
a. There is a basis for actual damages
b. But the court does not have any evidence to base the amount of actual
damages
c. If the court does not know how much the actual damages since no evidence
was given as to how much the damge is, the temperate/moderate damages