Bicol university

legazpi city, ALBAY

College of engineering

ge - 311
bs – geodetic engineering

LAND REGISTRATION LAWS

First Semester, SY 2020-2021

PREPARED BY:
ENOC ISAAC C. LOGRONIO
OBLIGATION
AND
CONTRACTS
OBLIGATIONS
 Definition:
An obligation is a juridical necessity to
give, to do or not to do. (Article 1156 of
the New Civil Code)
 ESSENTIAL REQUISITES OF AN OBLIGATION
(APOT)
a) An active subject, who has the power to demand the prestation, known as the
CREDITOR or OBLIGEE
b) A passive subject, who is bound to perform the prestation, known as DEBTOR or
OBLIGOR
c) An object or the prestation which may consist in the ACT OF GIVING, DOING or
NOT DOING something.
d) The juridical tie/ necessity between the two subjects by reason of which the debtor is
bound in favor of the creditor to perform the prestation. It is the LEGAL TIE which
constituents the SOURCE OF OBLIGATION
 SAMPLE BOARD EXAM QUESTION

• Bruno contracted the services of Geodetic Engineer. Juan to conduct a

relocation survey of his twenty four hectares of land for a professional
fee of 180,000. Identify the object.
a) BRUNO
b) ENGR. JUAN
c) LAND
d) TO SURVEY
WHAT IS THE DIFFERENCE
BETWEEN OBLIGATION
AND CONTRACTS?
• Contract is the only one of the sources
of obligation, while obligations have
other sources like law, quasi-contracts,
delicts or quasi – delicts.
 SOURCE OF OBLIGATIONS (LCQAQ)

• OBLIGATION ARISE FROM:

Law
Contracts;
Quasi – contracts;
Acts or omissions punished by law;
Quasi - delicts
 ARISING FROM LAW
Examples:
- it is the duty of the Spouses to support each other. (Article. 291. New
civil code)

- and under the National Internal Revenue Code, it is the duty of every
person having an income to pay taxes.
 CONTRACTS (SEE SEPARATE
DISCUSSION)
• Contract is the MEETING BETWEEN MINDS between two
person whereby one binds himself with respect to the other.
• Obligation arising from contracts have the force of law
between the contracting parties because that which is agreed
upon in the contract is the law between them, thus, the
agreement should be complied with in good faith.
EXAMPLES:
 A contract of lease was executed between Cardo as the
lessee and Alyana (owner) as the lessor for the rent of
an apartment.

Contract of sale or Contract of Service

 QUASI - CONTRACTS
• The “Quasi” literally means “as if”

• Quasi – Contract is the juridical relation resulting from a

lawful, unilateral and voluntary act which has for its purpose
the payment of indemnity to the end that NO ONE SHALL
UNJUSTLY ENRICH or benefited at the expense of another.
 EXAMPLES OF QUASI - CONTRACTS

1. SOLUTIO INDEBITI (Payment by mistake)

 It is the juridical relation which arises when a person is obliged
to return something RECEIVED BY HIM THROUGH ERROR
or MISTAKE.

EXAMPLE:
 Receiving a big amount in your bank account by mistake.
2. NEGOTIORUM GESTIO (MANAGEMENT OF ANOTHER’S
PROPERTY)
 It is the VOLUNTARY MANAGEMENT or ADMINISTRATON BY A PERSON OF
THE ABANDONED BUSINESS OR PROPERTY OF ANOTHER without any
authority or power from the latter.

 EXAMPLE:
 Kobe, a wealthy landowner suddenly left for abroad leaving his livestock farm unattended.
Lebron managed the farm thereby incurring expenses. When kobe returns, he has the obligation to
reimburse Lebron for the expenses incurred by him and to pay him for his services.
 ACTS / OMISSIONS PUNISHED BY LAW AS A
SOURCE OF OBLIGATIONS (CRIMES)

• While an act or omission is felonious

because it is punished by law, the
criminal act gives rise to Civil liability
as it caused damage to another.
 QUASI - DELICTS
• Quasi – delicts is one where whoever by act or omission
CAUSES DAMAGE TO ANOTHER, there being fault or
negligence, is obliged to pay for damage done.
• EXAMPLE:
 If Pedro drives his car negligently and because of his negligence hits Jose,
who is walking on the sidewalk of the street, inflicting upon him physical
injuries. Then Pedro becomes liable for damages based on Quasi – delict.
 OBLIGATION TO GIVE (REAL
OBLIGATION)
1. Specific (determinate) thing
 PARTICULARLY DESIGNATED or physically segregated from all other of the same class
identified by individuality (cannot be substituted).
 Example: To deliver a specific lot number

2. Generic (indeterminate) thing

 OBJECT ID DESIGNATED ONLY ITS class / genus / species. (can be substituted by any of the
same class and same kind)
 Example: Money
 DUTIES OF THE DEBTOR
(OBLIGOR)

1. Preserve or take care of the thing due

2. To deliver the thing itself
3. To deliver the fruits of the thing
4. To deliver the accessions and accessories
5. To pay for damages incase of breach
 ACCESSION AND ACCESSORIES (TO BE
DISCUSSED IN PROPERTY LAW)
• ACCESSION
 Is the right pertaining to the owner of a thing over its products and whatever is attached
thereto either naturally or artificially.

 Example:
 ACCRETION which refers to the gradual and addition of sediment to the shore by action of
water.
 ACCESSORIES are those things which are joined attached to the principal object as ornament or
to render it perfect.
 EX: key to a car
RIGHTS OF THE CREDITOR (OBLIGEE)

• To compel delivery of the thing due or specific performance

• To recover damages in case of breach from the debtor (non-
fulfillment of the obligation)
• Entitled to fruits and interest from the time the obligation to
deliver arises
 TYPES OF FRUITS (NIC)
1) NATURAL FRUITS – the spontaneous products of the soil, and the
young and other products of animals (i.e. grass, trees and plants on
lands produced without the intervention of man)
2) INDUSTRIAL FRUITS – those produced by lands of any kind
THROUGH CULTIVATION OR LABOR (i.e. vegetables, rice and all
products of lands brought about by a reason of human labor)
3) CIVIL FRUITS – those derived by virtue of a JURIDICAL
RELATION (i.e rents of buildings)
 DEFAULT OR DELAY (MORA)

• Failure to perform an obligation on time

which constitutes breach of the obligation.
 TYPES OF DELAY OR MORA

1. MORA SOLVENDI - delay ON THE PART OF THE DEBTOR to fulfill his

obligation either to give or to do.
2. MORA ACCIPIENDE – delay ON THE PART OF THE CREDITOR to accept the
performance of the obligation
3. COMPENSATIO MORAE – delay of BOTH PARTIES in reciprocal obligation
• FRAUD in the performance of obligation –
Intentional evasion of the normal
fulfillment of an obligation (panloloko /
manloloko)
NEGLIGENCE IN THE PERFORMANCE OF AN
OBLIGATION
• Omission of that diligence which is required by the nature of
obligation (substandard fulfillment of an obligation)

• Note:
 In performing an obligation, ordinary diligence
required is diligence of a good father
REMEDIES AVAILABLE TO CREDITOR IN
CASE OF BREACH, DELAY OR FRAUD

1. Specific performance by the debtor

2. Right to rescind or cancel the contract
3. Damages if debtor is guilty of fraud,
negligence or delay.
KINDS OF DAMAGES THAT CAN BE
RECOVERED (MENTAL)

• MORAL
• EXEMPLARY OR CORRECTIVE
• NOMINAL
• TEMPERATE OR MODERATE
• ACTUAL OR COMPENSATORY
• LIQUIDATED
 FORTUITOUS EVENT (FORCE MAJEURE)

• A legal excuse for breach of obligation (except delivery of generic

things)

• A happening Independent of the will of the debtor and which makes the
normal fulfillment of the obligation impossible

• IN SHORT “MGA DI INAASAHANG PANGYAYARE”

 KINDS OF FORCE MAJEURE
1. ACT OF GOD
 Due directly or exclusively to natural causes without human intervention (i.e.
calamity, tsunami)

2. ACT OF MAN
 Essentially an act of man includes unavoidable accidents but no fault or
negligence on part of the debtor
 KINDS OF OBLIGATION
1. PURE OBLIGATION
Does not depend on any condition or term

2. CONDITIONAL OBLIGATION
Subject to a condition and the effectivity of which is
subordinated to the fulfillment or non-fulfillment of a
future and uncertain event
 CONDITIONAL OBLIGATION
TYPES OF CONDITION:
 SUSPENSIVE CONDITION – shall only be effective upon the
fulfillment of the condition
EX: “I will give you a car if you pass the GE BOARD
EXAM”
 RESOLUTORY CONDITION – immediately demandable but subject to
threat by the happening of the resolutory condition.
EX: “You can stay in my house until you get a job.”
• POTESTATIVE CONDITION – fulfillment of the condition
depends upon the will of one of the contracting parties
• CASUAL CONDITION – depends on chance or will of a
third person
• MIXED CONDITION – partly potestative and partly casual
3. OBLIGATION WITH A PERIOD OR TERM
4. FACULTATIVE (One object and can be substituted by
another) or alternative (several objects) obligation.
5. JOINT (liable to proportionate share only) or Solidary (all
for one, one for all)
6. DIVISIBLE or INDIVISIBLE OBLIGATION
 SAMPLE BOARD EXAM QUESTION
• Juan promised to pay ENGR. Maria 150,000 pesos if she can undertake a subdivision
survey of his property, which is located in an MNLF infested area. This is an example
of __________________.

a) PURE OBLIGATION
b) MIXED OBLIGATION
c) CASUAL OBLIGATION
d) CONDITIONAL OBLIGATION
 EXTINGUISHMENT OF OBLIGATION
1. Payment (obligation has been done)
 Consignation – depositing of object of an obligation in a competent court

2. Condonation or remission of debt

3. Confusion – creditor and debtor becomes one person
4. Compensation – offsetting of two obligations which are reciprocally extinguished if
they are lot same value
5. Novation – substitution or change of the obligation by subsequent one.
CONTRACTS
REQUISITES OF CONTRACTS (COC)

1.Consent of the Contracting Parties

2.Object certain which is the subject
matter of the Contract:
3.Consideration
 CONSENT
The following cannot give consent to a contract:
1. Minors
2. Insane or demented persons, and deaf-mutes
who do not know how to write.
GENERALLY, form is not required for a contract to be valid. It can be
done orally. It is enough that there be consent, subject matter and
consideration.
EXCEPTIONS:
1. Formal Contracts
2. Real Contracts
 REAL CONTRACTS

• Contracts which are perfected not merely by consent

but by delivery, actual or constructive, of the object of
the obligation.

• Example: Contract of SALE

 FORMAL CONTRACT

•Contracts for which a

special form is necessary for
its perfection
 EXAMPLE OF FORMAL CONTRACTS

• The donation of a movable may be made orally or in

writing
• If the value of the personal property donated exceeds
FIVE THOUSAND PESOS (5,000), the donation and
the acceptance shall be made in writing, otherwise,
the donation shall be VOID.
DONATION OF IMMOVABLE PROPERTY
(Ex. Land) of any value must be in a PUBLIC
DOCUMENT (Notarized).
 SAMPLE BOARD EXAM QUESTION
X and Y were to marry in 3 months. To express his affection, X donated a house and lot
to Y, which donation X wrote in a letter to Y. Y accepted the donation and took
possession of the property. Before the wedding, however, Y suddenly died of heart
broken attack (LOL). Can Y’s heirs get the property?

a. No, since the marriage did not take place.

b. Yes, since all the requisites of a donation of an immovable are present.
c. No, since the donation and its acceptance are not in a public instruments
d. Yes, since X freely donated the property to Y who became its owner
EFECTIVE CONTRACTS ( VURV):

1. VOID Contracts
2. UNENFORCEABLE Contracts
3. RESCISSIBLE Contracts
4. VOIDABLE Contracts
 VOID CONTRACTS
• No legal effect at all
• Examples:
Those whose cause, object or purpose is contrary to law, morals,
good customs, public order or public policy
Those which are absolutely simulated or fictitious
Those whose object is outside the commerce of men
Those which contemplate an impossible service
 UNENFORCEABLE CONTRACTS
• Those that cannot be enforced in court by reason of certain defects provided by law
until and unless they are ratified according to law.

• Examples:
 Those entered into the name of another person by one who has been given no
authority or legal representation, or who has acted beyond his powers;
 Formal contracts not made in writing
 Both parties are incapable of giving consent
 RESCISSIBLE CONTRACTS

• Valid until rescinded. All essential requisites of

a contract exist but there is INJURY or Damage
to one of the parties or to third persons.
 EXAMPLE OF RESCISSIBLE CONTRACTS

1. When the acts of administration cause lesion or damage to the ward

they represent
2. When the acts of administration cause lesion or damage to the
absentee they represent
3. When the creditors cannot in any other manner collect the claims due
them
4. If entered into by the defendant without the knowledge and approval
of the litigants or competent judicial authority
 VOIDABLE CONTRACTS
The following contracts are voidable or annullable:

1. Those where one of the parties is incapable of giving

consent to a contract;

2. Those where the consent is vitiated by mistake, violence,

intimidation, undue influence or fraud.
 SAMPLE BOARD EXAM QUESTION

Cardo entered into a contract to sell with Tonying undertaking to convey to the latter one
of the five lots he owns, without specifying which lot it was, for the price of one million
(1M). Later, the parties could not agree which of five lots he owned Cardo undertook to
sell to Ramon. What is the status of the Contract?
a) Rescissible
b) Unenforceable
c) Void
d) Voidable
This referenced is based from the 2017 GE BOARD EXAM
REVIEW HANDOUTS
 ACTIVITY 4

Purely situational question on Land laws and Regulations:

Explain your answer in every situational question.
1. May the owner of a building constructed on an unregistered land belonging to another
apply for the registration of such building under the Land Registration Act and PD
1529?
2. Maria failed to pay the realty taxes on her unregistered agricultural land located in
Magdugo, Toledo City. To satisfy the taxes due, the city sold it at public auction to
Juan whose bid at P10,000.00 pesos was the highest. Maria refused to turn over the
possession of the property to Juan alleging that she had been granted a free patent. Did
maria divest of her ownership through the tax sale?
3. “A” owned a parcel of unregistered land located on the Tarlac side of the
boundary between Tarlac and Pangasinan. His brother “B” owned the
adjoining parcel of unregistered land on the Pangasinan side. “A”sold the
tarlac parcel to “X” in a deed of sale executed as a public instrument. After
“X” paid in full the price of the sale, “X” took possession of the Pangasinan
parcel in the belief that it was the tarlac parcel. After twelve (12) years, a
controversy arose between “B” and “X” on the issue of the ownership of the
Pangasinan parcel. Who is the rightful owner of Pangasinan parcel?
4. In 1950, the Bureau of Lands issued a Homestead patent to “A”. Three (3) years
later, “A” sold the homestead to “B”. “A” died in 1990, and his heirs filed an action
to recover the homestead from “B” on the ground that its sale by their father to the
latter is void under Section 118 of the Public Land Law. Can the heirs still recover
the homestead patent?
5. Juan and his sister Juana inherited from their mother two parcels of farmland with
exactly the same areas. For convenience, the Torrens certificates of title covering
both lots were placed in Juan’s name alone. In 1996, Juan sold to an innocent
purchaser one parcel in its entirely without the knowledge and consent of juana, and
wrongfully kept for himself the entire price paid. What can juana do?
THANK YOU!