I.

Effect and Application of Laws – New Civil Code

A. When law takes effect

After 15 days following the completion of its publication in the Official Gazette, or
in a newspaper of general circulation, unless it is otherwise provided.1

B. Ignorance of the Law

Excuses no one from compliance therewith.2

C. Retroactivity of Laws

Laws shall have no retroactive effect, unless the contrary is provided.3

D. Mandatory or Prohibitory Laws

Acts which are contrary to mandatory or prohibitory laws are void, except
when the law itself authorizes its validity.4

1
Art. 2
This refers to the 15-day period and not to the requirement of publication. (Tanada vs. Tuvera, G.R.No.
L-63915, Dec. 29, 1986)
Administrative rules and regulations must also be published if their purpose is to enforce or
implement existing laws pursuant to a valid delegation. The publication must be in full or it is no
publication at all since its purpose is to inform the public of the contents of the law. (Phil. Int’l Trading
Corp. vs .Angeles)
2
Art. 3
Considered a conclusive presumption and applies only to mandatory and prohibitory laws. (Consunji vs.
CA)
Philippine laws are covered. There is no conclusive presumption of knowledge of foreign laws. Even
our courts cannot take judicial notice of them. Ignorance of a foreign law will not be a mistake of law
but a mistake of fact.
Ignorance may either be of law or of fact. Ignorance of fact (ignorantia facti) may excuse a party from
the legal consequences of his conduct; but not ignorance of law, for ignorantia juris neminem excusat.
In specific instances provided by law, mistake as to difficult legal questions has been given the same
effect as a mistake of fact, e.g., Art. 526, par. 3 which provides: "Mistake upon a doubtful or difficult
question of law may be the basis of good faith."
3
Art. 4
4
Art. 5

1

E. Waiver of Rights

Rights may be waived, unless the waiver is contrary to law, public order, public
policy, morals, or good customs, or prejudicial to a third person with a right recognized by
law.5

F. Repeal of Laws

Laws are repealed only by subsequent ones, either expressly or impliedly. Their
violation or non-observance shall not be excused by disuse, custom or practice to the
contrary.

When the courts declared a law to be inconsistent with the Constitution, the former
shall be void and the latter shall govern.

Administrative or executive acts, orders and regulations shall be valid only when
they are not contrary to the laws or the Constitution.6

G. Judicial Decisions

Judicial decisions applying or interpreting the laws or the Constitution shall form a
part of the legal system of the Philippines.7

H. Duty to Render Judgment

No judge or court shall decline to render judgment by reason of the silence,
obscurity or insufficiency of laws.8

5
Art. 6
6
Art. 7
7
Art. 8
Only Supreme Court decisions establish jurisprudence; decisions of other judicial or quasi-judicial
bodies are merely persuasive.
This principle, however, does not mean blind adherence. The duty of the Court is to abandon any
doctrine found to be in violation of the law in force.
8
Art. 9
This article does not apply to criminal prosecutions, bec. when there is no law punishing an act, the
case must be dismissed, however, reprehensible the act may seem to the judge (Tolentino).
If the law is vague or obscure, the court should clarify it in the light of the rules of statutory
construction; it is silent or insufficient, the court should fill the deficiency by resorting to customs or
general principles of law.

2

I. Presumption and Applicability of Custom

In case of doubt in the interpretation or application of laws, it is presumed that the
lawmaking body intended right and justice to prevail.9

Customs which are contrary to law, public order or public policy shall not be
countenanced.10

A custom must be proved as a fact, according to the rules of evidence.11

J. Legal Periods

When the laws speak of years, months, days or nights, it shall be understood that
years are of three hundred sixty-five days each; months, of thirty days; days, of twenty-four
hours; and nights from sunset to sunrise.

If months are designated by their name, they shall be computed by the number of
days which they respectively have.

In computing a period, the first day shall be excluded, and the last day included12

K. Applicability of Penal Laws

Penal laws and those of public security and safety shall be obligatory upon all who
live or sojourn in Philippine territory, subject to the principles of public international law
and to treaty stipulations.13

9
Art. 10
10
Art. 11
11
Art. 12
Custom is defined as "a rule of conduct formed by repetition of acts, uniformly observed (practiced)
as a social rule, legally binding and obligatory." The law requires that "a custom must be proved as a
fact, according to the rules of evidence." On this score the Court had occasion to state that "a local
custom as a source of right cannot be considered by a court of justice unless such custom is properly
established by competent evidence like any other fact." The same evidence, if not one of a higher
degree, should be required of a foreign custom
12
Art. 13
Superseded by Sec. 31, Book I of EO 292 (Administrative Code of 1987) w/c provides that
Sec. 31. Legal Periods.-- "Year" shall be understood to be twelve (12) calendar months; "months" of
thirty (30) days, unless it refers to a specific calendar month in which case it shall be computed
according to the number of days the specific month contains; "day," to a day of twenty four (24) hours;
and "nights," from sunset to sunrise.
This article applies only to legal provisions and not to contracts, where the parties may stipulate on
the manner of computing years, months and days (Baviera).
13
Art. 14

3

L. Conflict of Laws

Laws relating to family rights and duties, or to the status, condition and legal
capacity of persons are binding upon citizens of the Philippines, even though living
abroad.14

Real property as well as personal property is subject to the law of the country
where it is situated.15

However, intestate and testamentary successions, both with respect to the order of
succession and to the amount of successional rights and to the intrinsic validity of
testamentary provisions, shall be regulated by the national law of the person whose
succession is under consideration, whatever may be the nature of the property and
regardless of the country wherein said property may be found.16

The forms and solemnities of contracts, wills, and other public instruments shall be
governed by the laws of the country in which they are executed.17

When the acts referred to are executed before the diplomatic or consular officials
of the Republic of the Philippines in a foreign country, the solemnities established by
Philippine laws shall be observed in their execution.18

14
Art. 15
Theories on Personal Law.--
Domiciliary theory, followed in the US, according to w/c the personal laws of a person are determined
by his domicile.
Nationality theory w/c makes nationality or citizenship as the basis for determining the personal laws
of an individual. (Tolentino)
The question of how a citizen may strip himself of the status as such citizen is governed by his
national law.
15
Art. 16, 1st par.
The lex situs or lex rei sitae governs real or personal property.
16
id., 2nd par.
Can be invoked only when the deceased was vested w/ a descendible interest in prop. w/in the
jurisdiction of the Phils.
The intrinsic validity of the provisions of the will of a foreigner who dies in the Phils. is to be
determined by the laws of his own state or country, and not by those of the Phils. Thus, a condition in a
will of a foreigner that his legatee respect his order that his prop. be distributed according to the laws of
the Phils. instead of the laws of his own country, was held illegal and considered as not written.
The law governing succession may be considered from the point of view of (a) the execution of wills,
and (b) the distribution of property. The formalities of execution of will are generally governed by the
law of the place of execution (Art. 17, par. 1.) But the distribution of the estate is governed by the law
of the nation of the deceased.
17
Art. 17, 1st par., known as the lex loci celebrationis
18
id, 2nd par.

4

Prohibitive laws concerning persons, their acts or property, and those which have
for their object public order, public policy and good customs shall not be rendered
ineffective by laws or judgments promulgated, or by determinations or conventions agreed
upon in a foreign country.19

In matters which are governed by the Code of Commerce and special laws, their
deficiency shall be supplied by the provisions of the Civil Code.20

19
Id., 3rd par.
20
Art. 18

5

II. Human Relations – New Civil Code

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.21

Every person who, contrary to law, wilfully or negligently causes damage to
another, shall indemnify the latter for the same.22

Any person who wilfully causes loss or injury to another in a manner that is
contrary to morals, good customs or public policy shall compensate the latter for the
damage.23

Every person who through an act of performance by another, or any other means,
acquires or comes into possession of something at the expense of the latter without just or
legal ground, shall return the same to him.24

PERSONS

I. Persons and Personality25

A. Capacity to Act

1. Civil Personality26

Juridical capacity, which is the fitness to be the subject of legal relations, is inherent
in every natural person and is lost only through death.

Capacity to act, which is the power to do acts with legal effect, is acquired and may
be lost.27

21
Art. 19
Principle of abuse of rights
22
Art. 20
23
Art. 21
24
Art. 22
25
Civil Code
26
Aptitude of being the subject, active or passive, of rights and obligations
27
Art. 37
Capacity may be (1) juridical capacity, and (2) capacity to act. The union of these 2 forms the full civil
capacity. Juridical capacity is synonymous to legal capacity and to personality. They all refer to the
aptitude for the holding and enjoyment of rights. On the other hand, capacity to act refers to the
aptitude for the exercise of rights, and is often referred to merely as "capacity."

6

2. Restrictions on Capacity to Act

Minority, insanity or imbecility, the state of being a deaf-mute, prodigality and civil
interdiction are mere restrictions on capacity to act, and do not exempt the incapacitated
person from certain obligations, as when the latter arise from his acts or from property
relations, such as easements.28
The following circumstances, among others, modify or limit capacity to act: age,
insanity, imbecility, the state of being a deaf-mute, penalty, prodigality, family relations,
alienage, absence, insolvency and trusteeship. Capacity to act is not limited on account of
religious belief or political opinion.

A married woman, eighteen (18) years of age or over, is qualified for all acts of civil
life, except in cases specified by law.29

3. Birth

Determines personality; but the conceived child shall be considered born for all
purposes that are favorable to it, provided it be born later with certain conditions.30
For civil purposes, the foetus is considered born if it is alive at the time it is
completely delivered from the mother's womb. However, if the foetus had an intrauterine
life of less than seven months, it is not deemed born if it dies within twenty-four hours
after its complete delivery from the maternal womb.31

4. Death

Civil personality is extinguished by death. The effect of death upon the rights and
obligations of the deceased is determined by law, by contract and by will.32

28
Art. 38
29
Art. 39
30
Art. 40
Personality from Birth - Birth means the removal of the foetus from the mother's womb.
Conceived Child.-- The personality of the conceived child has 2 characteristics: (1) it is essentially
limited, bec. it is only for purposes favorable to the child, and (2) it is provisional or conditional, bec. it
depends upon the child being born alive later, such that if it is not born alive, its personality disappears
as if it had never existed.
For civil personality to be acquired, one must be born.-- A foetus is born after it is completely
separated from the mother's womb w/c is produced by the cutting of the umbilical cord; after the
separation, the child now survives by itself.
31
Art. 41
Once birth occurs, personality for favorable purposes retroacts from the moment of conception.--
The retroactivity rule is qualified-- only for purposes favorable to the child.
32
Art. 42
Physical death and legal death are the same. (Balane)

7

a. Compare Art. 43 with Rule 131, Sec. 3 (jj)
presumption of Survivorship

Art. 4333 Rule 131, Sec. 3 (jj)

Two or more persons, called to succeed When two persons perish in the same
each other, shall be presumed to have died calamity34 and it is not shown who died first,
at the same time, subject to the following and there are no particular circumstances
conditions: from which it can be inferred, the
survivorship35 is determined from the
1. parties are heirs to one another probabilities resulting from the strength and
the age of the sexes, according to the
2. no proof as to who died first following rules:

3. with doubt as to who died first 1. If both were under the age of fifteen
years, the older is deemed to have survived;

2. If both were above the age sixty, the
younger is deemed to have survived;

3. If one is under fifteen and the other
above sixty, the former is deemed to have
survived;

4. If both be over fifteen and under sixty,
and the sex be different, the male is deemed
to have survived, if the sex be the same, the
older;

5. If one be under fifteen or over sixty, and
the other between those ages, the latter is
deemed to have survived.

Article 43 applies when the parties are called to succeed each other. But if the
parties are not called to succeed each other, Rule 131, Sec. 3 (jj) of the Rules of Court
applies. Both are to be applied only in the absence of facts.

33
If there is a doubt, as between two or more persons who are called to succeed each other, as to which
of them died first, whoever alleges the death of one prior to the other, shall prove the same; in the
absence of proof, it is presumed that they died at the same time and there shall be no transmission of
rights from one to the other.
34
such as wreck, battle, or conflagration
35
except for purposes of succession

8

the domicile of natural persons is the place of their habitual residence.Domicile chosen by a person to change his original domicile. 1251. their personality begins as soon as they have been constituted according to law. created by law.In case of revocation of wills (Art.) Three kinds of Domicile: (1) Domicile of Origin. Domicile is residence plus habituality. par.e. place of performance of obligation (Art.Domicile of the parents of a person at the time he was born (2) Domicile of Choice. partnerships and associations for private interest or purpose to which the law grants a juridical personality. partner or member.-. as well as incur obligations and bring civil or criminal actions. 3). 45 39 Art. Partnerships and associations for private interest or purpose are governed by the provisions of this Code concerning partnerships. renvoi (Aznar v.39 B. Garcia) 9 . in conformity with the laws and regulations of their organization. a third requisite must be present in domicile of choice. separate and distinct from that of each shareholder. (2) Other corporations. institutions and entities for public interest or purpose.g. 829). 44. (2) animus manendi (intent to remain) (Gallego v. 50. (3) Corporations. Requisites of Domicile: (1) physical presence. Aside from the 2 requisites mentioned above.-.36 Juridical persons mentioned in Nos. 73 P 453.P.. 68 38 Art.-. Private corporations are regulated by laws of general application37 on the subject. 69. animus non revertendi (intention not to return to one's old domicile as his permanent place.40 36 Art. Vera.38 Juridical persons may acquire and possess property of all kinds. 46 40 Art. 5.) (3) Domicile by Operation of Law. Art.-. Domicile is not the same as residence. 1 and 2 are governed by the laws creating or recognizing them. 37 B. FC. Juridical Persons (1) The State and its political subdivisions. Importance of Understanding Domicile. Domicile and residence For the exercise of civil rights and the fulfillment of civil obligations.

10 . whether when absent. one has the intention of permanent or temporary returning There can be several places of residence There can only be one place of domicile Not domicile Residence coupled with the intention to remain for an unlimited time 41 Art. When the law creating or recognizing them. which Used to indicate a place of abode. the same shall be understood to be the place where their legal representation is established or where they exercise their principal functions.41 Domicile Residence More or less permanent More or less temporary Denotes a fixed permanent residence. 51. or any other provision does not fix the domicile of juridical persons.

35 (2) 49 Art. except those solemnized by any person not legally authorized to perform marriages unless such marriages were contracted with either or both parties believing in good faith that the solemnizing officer had the legal authority to do so (Art. infra 47 The appearance of the contracting parties before the solemnizing officer and their personal declaration that they take each other as husband and wife in the presence of not less than two witnesses of legal age (Art. 5 11 . Requisites 1.46 and (2) Consent freely given in the presence of the solemnizing officer. Kinds of Requisites Essential Formal (1) Legal capacity of the contracting (1) Authority of the solemnizing officer. It is the foundation of the family and an inviolable social institution whose nature.44 and (2) A valid marriage license. Nature of Marriage A special contract of permanent union between a man and a woman entered into in accordance with law for the establishment of conjugal and family life. 3. 2 46 Except Marriages Exempted from License Requirement. 4. Effect of absence of requisites The marriage is void ab initio. except that marriage settlements may fix the property relations during the marriage. and incidents are governed by law and not subject to stipulation.II. Age49 Any male or female of the age of eighteen (18) years or upwards. not under any of the impediments mentioned in Articles 37 and 38. 1988 43 Art.43 B. parties.45 (3) A marriage ceremony47 1.48 2. Marriage – Family Code42 A. 3) 48 Art. 1 44 Must be a male and a female 45 Art. 50 42 Aug. Essential requisites a. consequences.

or minister of any church or religious sect duly authorized by his church or religious sect and registered with the civil registrar general. 50 See Reference 51 The consent is real and not vitiated or rendered defective by any of the vices of consent. intimidation or undue influence (Art. however. b. 3. or if the consent of either party was obtained by force. 7 53 infra 54 Ibid. likewise only in the cases mentioned in Article 32. the marriage may be annulled if the consent of either party was obtained by fraud. 45. imam. 3). par.53 (4) Any military commander of a unit to which a chaplain is assigned. acting within the limits of the written authority granted by his church or religious sect and provided that at least one of the contracting parties belongs to the solemnizing officer's church or religious sect. Formal Marriage may be solemnized by:52 (1) Any incumbent member of the judiciary within the court's jurisdiction. for the contracting parties to appear personally before the solemnizing officer and declare in the presence of not less than two (2) witnesses of legal age that they take each other as husband and wife. rabbi.54 (5) Any consul-general. during a military operation. (2) Any priest. 4). This declaration shall be contained in the marriage certificate which shall be signed by the contracting parties and their witnesses and attested by the solemnizing officer. 52 Art. in the absence of the latter. It shall be necessary. Consent Freely given51 in the presence of the solemnizing officer. 12 .55 4. consul or vice-consul in the case provided in Article 10. (Art. (3) Any ship captain or airplane chief only in the case mentioned in Article 31. par. Hence. 45. Ceremony No prescribed form or religious rite for the solemnization of the marriage is required.

7. 10 60 Art. 3 (2). except Marriages Exempted from License Requirement.58 Marriages between Filipino citizens abroad may be solemnized by a consul-general. (2) Place of birth.59 a. Where a marriage license is required. (3) Age and date of birth. Solemnizing authority The marriage shall be solemnized publicly in the chambers of the judge or in open court. 35 (2). each of the contracting parties shall file separately a sworn application for such license with the proper local civil registrar. or in the office the consul-general.62 The license shall be valid in any part of the Philippines for a period of one hundred twenty (120) days from the date of issue. The issuance of the marriage license and the duties of the local civil registrar and of the solemnizing officer with regard to the celebration of marriage shall be performed by said consular official. id. consul or vice-consul of the Republic of the Philippines.61 A marriage license shall be issued by the local civil registrar of the city or municipality where either contracting party habitually resides. and shall be deemed automatically cancelled at the expiration of the said period if the contracting parties have not made use of it.63 56 Art. which fact shall be attested by the solemnizing officer56 5. (4) Civil status. In case of a marriage in articulo mortis. in the church. it shall be sufficient for one of the witnesses to the marriage to write the name of said party. except in cases of marriages contracted on the point of death or in remote places in accordance with Article 2957 of this Code. when the party at the point of death is unable to sign the marriage certificate. 6 57 See reference 58 Art. which shall specify the following: (1) Full name of the contracting party. chapel or temple. supra 62 Art. supra 59 Art. and not elsewhere. or where both of the parties request the solemnizing officer in writing in which case the marriage may be solemnized at a house or place designated by them in a sworn statement to that effect. except in marriages where no license is required. 13 . 8. infra 61 Art. for Art. 9. License Required A valid marriage license. Exceptions60 6. consul or vice- consul. The expiry date shall be stamped in bold characters on the face of every license issued.

who is a commissioned officer. 20 64 Art. it shall be necessary for them before a marriage license can be obtained. Foreign National When either or both of the contracting parties are citizens of a foreign country. whether members of the armed forces or civilians. and (10) Full name. but also during stopovers at ports of call. residence and citizenship of the father. (8) Full name. shall likewise have authority to solemnize marriages in articulo mortis between persons within the zone of military operation. 32 14 . residence and citizenship of the mother. their parents or guardians shall not be required to exhibit their residence certificates in any formality in connection with the securing of the marriage license (Art.65 A marriage in articulo mortis between passengers or crew members may also be solemnized by a ship captain or by an airplane pilot not only while the ship is at sea or the plane is in flight.64 b. The contracting parties shall state the foregoing facts in an affidavit before any person authorized by law to administer oaths. 31 67 Art. (9) Full name. 11) 63 Art. a. 27 66 Art. (6) Present residence and citizenship. residence and citizenship of the guardian or person having charge. The solemnizing officer shall also (5) If previously married. when and where the previous marriage was dissolved or annulled. (7) Degree of relationship of the contracting parties. the marriage may be solemnized without necessity of a marriage license and shall remain valid even if the ailing party subsequently survives. Stateless persons or refugees from other countries shall.67 No license shall be necessary for the marriage of a man and a woman who have lived together as husband and wife for at least five years and without any legal impediment to marry each other. issued by their respective diplomatic or consular officials. Exceptions In case either or both of the contracting parties are at the point of death.66 A military commander of a unit. to submit a certificate of legal capacity to contract marriage. in lieu of the certificate of legal capacity herein required. in case the contracting party has neither father nor mother and is under the age of twenty-one years. submit an affidavit stating the circumstances showing such capacity to contract marriage. 21 65 Art. how. The applicants.

(2) Their citizenship. shall also be valid in this country. except those prohibited under Articles 35 (1). Effect of Marriage celebrated abroad and foreign divorce71 All marriages solemnized outside the Philippines. and valid there as such. in accordance with the laws in force in the country where they were solemnized. 68 Art.state under oath that he ascertained the qualifications of the contracting parties are found no legal impediment to the marriage68 7. the Filipino spouse shall have capacity to remarry under Philippine law. (4). supra 70 Art. (5) and (6). 36. shall also state: (1) The full name. Marriage Certificate The marriage certificate. (6) That either or both of the contracting parties have complied with the legal requirement regarding parental advice in appropriate cases. 34 69 except Marriages Exempted from License Requirement. (3) The date and precise time of the celebration of the marriage. religion and habitual residence. attaching a copy thereof70 C. 26 72 infra 15 . in which the parties shall declare that they take each other as husband and wife.72 Where a marriage between a Filipino citizen and a foreigner is validly celebrated and a divorce is thereafter validly obtained abroad by the alien spouse capacitating him or her to remarry. 37 and 38. 22 71 Art. if any. sex and age of each contracting party. (4) That the proper marriage license has been issued according to law69 (5) That either or both of the contracting parties have secured the parental consent in appropriate cases. and (7) That the parties have entered into marriage settlement.

Psychological incapacity A marriage contracted by any party who. infra 78 Art. 36 16 . Absence of Requisites The following marriages shall be void from the beginning: (1) Contracted by any party below eighteen (18) years of age even with the consent of parents or guardians. the same shall not affect third persons. the subsequent marriage shall be null and void. and (6) Subsequent marriages that are void under Article 53. 52 74 Art.74 a. (2) Solemnized by any person not legally authorized to perform marriages unless such marriages were contracted with either or both parties believing in good faith that the solemnizing officer had the legal authority to do so. supra 76 infra 77 Art.73 Either of the former spouses may marry again after compliance with the foregoing requirements. Void and Voidable marriages 1.78 73 Art. otherwise. even if such incapacity becomes manifest only after its solemnization. D. 35.76 (5) Contracted through mistake of one contracting party as to the identity of the other. (3) Solemnized without license. Void Marriages The judgment of annulment or of absolute nullity of the marriage.77 b. at the time of the celebration. was psychologically incapacitated to comply with the essential marital obligations of marriage. the partition and distribution of the properties of the spouses and the delivery of the children's presumptive legitimes shall be recorded in the appropriate civil registry and registries of property. 53. Art. otherwise. 53 75 except Marriages Exempted from License Requirement.75 (4) Bigamous or polygamous marriages not failing under Article 41.

(5) Between the surviving spouse of the adopting parent and the adopted child. (8) Between adopted children of the same adopter. and (9) Between parties where one. (6) Between the surviving spouse of the adopted child and the adopter. whether of the full or half blood. with the intention to marry the other. (2) Between step-parents and step-children. Prescription The action or defense for the declaration of absolute nullity shall not prescribe. (7) Between an adopted child and a legitimate child of the adopter. up to the fourth civil degree.79 For reasons of public policy: (1) Between collateral blood relatives whether legitimate or illegitimate. 37 80 supra 81 Art.81 79 Art.80 such action or defense shall prescribe in ten (10) years after this Code shall take effect. Incestous marriages Whether the relationship between the parties be legitimate or illegitimate: (1) Between ascendants and descendants of any degree. or his or her own spouse. and (2) Between brothers and sisters. killed that other person's spouse. c. (4) Between the adopting parent and the adopted child. In case of marriage celebrated before the effectivity of this Code and falling under Article 36. 2. 39 17 . (3) Between parents-in-law and children-in-law.

42 18 . (2) A person in the armed forces who has taken part in war. an absence of only two (2) years shall be sufficient.82 A marriage contracted by any person during subsistence of a previous marriage shall be null and void. (2) The absolute community of property or the conjugal partnership. the spouse present must institute a summary proceeding for the declaration of presumptive death of the absentee. unless before the celebration of the subsequent marriage. 40 83 The following shall be presumed dead for all purposes. and has been missing for four years. The subsequent marriage referred to shall be automatically terminated by the recording of the affidavit of reappearance of the absent spouse. unless there is a judgment annulling the previous marriage or declaring it void ab initio.84 For the purpose of contracting the subsequent marriage under the preceding paragraph. including the division of the estate among the heirs: (1) A person on board a vessel lost during a sea voyage. In case of disappearance where there is danger of death under the circumstances set forth in the provisions of Article 39183 of the Civil Code.85 Effects of termination of the subsequent marriage: (1) The children of the subsequent marriage conceived prior to its termination shall be considered legitimate. 84 Art. as the case may be. who has not been heard of for four years since the loss of the vessel or aeroplane. Subsequent marriages The absolute nullity of a previous marriage may be invoked for purposes of remarriage on the basis solely of a final judgment declaring such previous marriage void. 41 85 Art. (3) A person who has been in danger of death under other circumstances and his existence has not been known for four years. without prejudice to the effect of reappearance of the absent spouse. shall be dissolved and liquidated. with due notice to the spouses of the subsequent marriage and without prejudice to the fact of reappearance being judicially determined in case such fact is disputed. but if either spouse contracted said marriage in 82 Art. 3. A sworn statement of the fact and circumstances of reappearance shall be recorded in the civil registry of the residence of the parties to the subsequent marriage at the instance of any interested person. the prior spouse had been absent for four consecutive years and the spouse present has a well- founded belief that the absent spouse was already dead. or an aeroplane which is missing.

guardian or person having substitute parental authority over the party. intimidation or undue influence. the children of the guilty spouse by a previous marriage or in default of children. and (5) The spouse who contracted the subsequent marriage in bad faith shall be disqualified to inherit from the innocent spouse by testate and intestate succession86 If both spouses of the subsequent marriage acted in bad faith. such party thereafter freely cohabited with the other as husband and wife. unless such party afterwards. in that order. the innocent spouse. even if such designation be stipulated as irrevocable.bad faith. freely cohabited with the other as husband and wife. with full knowledge of the facts constituting the fraud. his or her share of the net profits of the community property or conjugal partnership property shall be forfeited in favor of the common children or. (4) The consent of either party was obtained by force. (3) The consent of either party was obtained by fraud. 44 19 . (3) Donations by reason of marriage shall remain valid. such party freely cohabited with the other and both lived together as husband and wife. if there are none. except that if the donee contracted the marriage in bad faith. existing at the time of the marriage: (1) The party in whose behalf it is sought to have the marriage annulled was eighteen years of age or over but below twenty-one. (2) Either party was of unsound mind. unless after attaining the age of twenty-one. (4) The innocent spouse may revoke the designation of the other spouse who acted in bad faith as beneficiary in any insurance policy. such donations made to said donee are revoked by operation of law. 86 Art. and the marriage was solemnized without the consent of the parents. 43 87 Art. unless the same having disappeared or ceased. freely cohabited with the other as husband and wife. said marriage shall be void ab initio and all donations by reason of marriage and testamentary dispositions made by one in favor of the other are revoked by operation of law. Annullable marriage A marriage may be annulled for any of the following causes.87 4. unless such party after coming to reason.

existing at the time of the marriage. or by the insane spouse during a lucid interval or after regaining sanity. (3) Concealment of sexually transmissible disease. 92 No. within five (5) years after attaining the age of twenty-one. regardless of its nature. Voidable marriages The action for annulment of marriage must be filed by the following persons and within the periods indicated: (1) By the party whose parent or guardian did not give his or her consent. habitual alcoholism or homosexuality or lesbianism existing at the time of the marriage. id. 2. 3.88 Any of the following circumstances shall constitute fraud referred to in Number 3: (1) Non-disclosure of a previous conviction by final judgment of the other party of a crime involving moral turpitude. or (6) Either party was afflicted with a sexually-transmissible disease found to be serious and appears to be incurable.91 (3) By the injured party. id. within five (5) years after the discovery of the fraud. (5) Either party was physically incapable of consummating the marriage with the other. supra 91 No. 46 90 No.92 88 Art. or by the parent or guardian or person having legal charge of the minor. or by any relative or guardian or person having legal charge of the insane. 45.90 (2) By the sane spouse. and such incapacity continues and appears to be incurable. or (4) Concealment of drug addiction. No other misrepresentation or deceit as to character. who had no knowledge of the other's insanity. (2) Concealment by the wife of the fact that at the time of the marriage. fortune or chastity shall constitute such fraud as will give grounds for action for the annulment of marriage89 5. at any time before the death of either party. 20 . 45 89 Art. she was pregnant by a man other than her husband. health. at any time before such party has reached the age of twenty-one. 1 of Art. rank.

(4) By the injured party, within five (5) years from the time the force, intimidation
or undue influence disappeared or ceased;93
(5) By the injured party, within five (5) years after the marriage.94

6. Presence of prosecutor

In all cases of annulment or declaration of absolute nullity of marriage, the Court
shall order the prosecuting attorney or fiscal assigned to it to appear on behalf of the State
to take steps to prevent collusion between the parties and to take care that evidence is not
fabricated or suppressed.

No judgment shall be based upon a stipulation of facts or confession of
judgment.95

7. Pendency of action

During the pendency of the action and in the absence of adequate provisions in a
written agreement between the spouses, the Court shall provide for the support of the
spouses and the custody and support of their common children. The Court shall give
paramount consideration to the moral and material welfare of said children and their
choice of the parent with whom they wish to remain. It shall also provide for appropriate
visitation rights of the other parent.96

8. Effects of nullity

The effects provided for by paragraphs (2), (3), (4) and (5) of Article 43 and by
Article 4497 shall also apply in the proper cases to marriages which are declared ab initio or
annulled by final judgment under Articles 40 and 45.98

The final judgment in such cases shall provide for the liquidation, partition and
distribution of the properties of the spouses, the custody and support of the common
children, and the delivery of third presumptive legitimes, unless such matters had been
adjudicated in previous judicial proceedings.

All creditors of the spouses as well as of the absolute community or the conjugal
partnership shall be notified of the proceedings for liquidation.

93
No. 4, id.
94
Nos. 5 & 6, id. (Art. 47)
95
Art. 48
96
Art. 49
97
supra
98
Ibid.

21

In the partition, the conjugal dwelling and the lot on which it is situated, shall be
adjudicated in accordance with the provisions of Articles 102 and 129.99

In said partition, the value of the presumptive legitimes of all common children,
computed as of the date of the final judgment of the trial court, shall be delivered in cash,
property or sound securities, unless the parties, by mutual agreement judicially approved,
had already provided for such matters.

The children or their guardian or the trustee of their property may ask for the
enforcement of the judgment.

The delivery of the presumptive legitimes shall in no way prejudice the ultimate
successional rights of the children accruing upon the death of either of both of the parents;
but the value of the properties already received under the decree of annulment or absolute
nullity shall be considered as advances on their legitime100

The judgment of annulment or of absolute nullity of the marriage, the partition and
distribution of the properties of the spouses and the delivery of the children's presumptive
legitimes shall be recorded in the appropriate civil registry and registries of property;
otherwise, the same shall not affect third persons.101
Either of the former spouses may marry again after compliance with the
requirements of the immediately preceding Article; otherwise, the subsequent marriage
shall be null and void.102

Children conceived or born before the judgment of annulment or absolute nullity
of the marriage under Article 36103 has become final and executory shall be considered
legitimate.

Children conceived or born of the subsequent marriage under Article 53 shall
likewise be legitimate.104

99
Art. 50; for Arts. 102 & 109, see Reference
100
Art. 51
101
Art. 52
102
Art. 53
103
supra
104
Art. 54

22

III. Legal Separation

A. Grounds

(1) Repeated physical violence or grossly abusive conduct directed against the
petitioner, a common child, or a child of the petitioner;
(2) Physical violence or moral pressure to compel the petitioner to change religious
or political affiliation;
(3) Attempt of respondent to corrupt or induce the petitioner, a common child, or
a child of the petitioner, to engage in prostitution, or connivance in such corruption or
inducement;
(4) Final judgment sentencing the respondent to imprisonment of more than six
years, even if pardoned;
(5) Drug addiction or habitual alcoholism of the respondent;
(6) Lesbianism or homosexuality of the respondent;
(7) Contracting by the respondent of a subsequent bigamous marriage, whether in
the Philippines or abroad;
(8) Sexual infidelity or perversion;
(9) Attempt by the respondent against the life of the petitioner; or
(10) Abandonment of petitioner by respondent without justifiable cause for more
than one year.
The term "child" shall include a child by nature or by adoption.105

B. Defenses

(1) The aggrieved party has condoned the offense or act complained of;
(2) The aggrieved party has consented to the commission of the offense or act
complained of;
(3) There is connivance between the parties in the commission of the offense or act
constituting the ground for legal separation;
(4) Both parties have given ground for legal separation;
(5) There is collusion between the parties to obtain decree of legal separation; or

105
Art. 55; see also R. A. 9262, Anti-Violence Against Women and Children

23

(6) The action is barred by prescription106
An action for legal separation shall be filed within five (5) years from the time of
the occurrence of the cause.107

C. Cooling-off Period

An action for legal separation shall in no case be tried before six (6) months shall
have elapsed since the filing of the petition.108

D. Reconciliation efforts

No legal separation may be decreed unless the Court has taken steps toward the
reconciliation of the spouses and is fully satisfied, despite such efforts, that reconciliation is
highly improbable.109

E. Confession of Judgment

No decree of legal separation shall be based upon a stipulation of facts or a
confession of judgment.

In any case, the Court shall order the prosecuting attorney or fiscal assigned to it to
take steps to prevent collusion between the parties and to take care that the evidence is not
fabricated or suppressed.110

F. Effects of Filing Petition

The spouses shall be entitled to live separately from each other.

The court, in the absence of a written agreement between the spouses, shall
designate either of them or a third person to administer the absolute community or
conjugal partnership property. The administrator appointed by the court shall have the
same powers and duties as those of a guardian under the Rules of Court.111

106
Art. 56
107
Art. 57
108
Art. 58
109
Art. 59
110
Art. 60
111
Art. 61

24

G. Effects of pendency

The provisions of Article 49112 shall apply to the support of the spouses and the
custody and support of the common children.113

H. Effects of legal separation

(1) The spouses shall be entitled to live separately from each other, but the
marriage bonds shall not be severed;

(2) The absolute community or the conjugal partnership shall be dissolved and
liquidated but the offending spouse shall have no right to any share of the net profits
earned by the absolute community or the conjugal partnership, which shall be forfeited in
accordance with the provisions of Article 43(2);114

(3) The custody of the minor children shall be awarded to the innocent spouse,
subject to the provisions of Article 213115 of this Code; and

(4) The offending spouse shall be disqualified from inheriting from the innocent
spouse by intestate succession. Moreover, provisions in favor of the offending spouse
made in the will of the innocent spouse shall be revoked by operation of law.

After the finality of the decree of legal separation, the innocent spouse may revoke
the donations made by him or by her in favor of the offending spouse, as well as the
designation of the latter as beneficiary in any insurance policy, even if such designation be
stipulated as irrevocable. The revocation of the donations shall be recorded in the registries
of property in the places where the properties are located. Alienations, liens and
encumbrances registered in good faith before the recording of the complaint for
revocation in the registries of property shall be respected. The revocation of or change in
the designation of the insurance beneficiary shall take effect upon written notification
thereof to the insured

The action to revoke the donation must be brought within five (5) years from the
time the decree of legal separation become final.116

112
supra
113
Art. 62
114
supra
115
See Reference
116
Art. 64

25

I. Reconciliation

If the spouses should reconcile, a corresponding joint manifestation under oath
duly signed by them shall be filed with the court in the same proceeding for legal
separation.117

Consequences:

(1) The legal separation proceedings, if still pending, shall thereby be terminated at
whatever stage; and

(2) The final decree of legal separation shall be set aside, but the separation of
property and any forfeiture of the share of the guilty spouse already effected shall subsist,
unless the spouses agree to revive their former property regime.

The court's order containing the foregoing shall be recorded in the proper civil
registries.118

The agreement to revive the former property regime shall be executed under oath
and shall specify:

(1) The properties to be contributed anew to the restored regime;
(2) Those to be retained as separated properties of each spouse; and
(3) The names of all their known creditors, their addresses and the amounts owing
to each.
The agreement of revival and the motion for its approval shall be filed with the
court in the same proceeding for legal separation, with copies of both furnished to the
creditors named therein. After due hearing, the court shall, in its order, take measure to
protect the interest of creditors and such order shall be recorded in the proper registries of
properties.

The recording of the ordering in the registries of property shall not prejudice any
creditor not listed or not notified, unless the debtor-spouse has sufficient separate
properties to satisfy the creditor's claim.119

117
Art. 65
118
Art. 66
119
Art. 67

26

IV. Rights and Obligations Between Husband and Wife

A. Essential Obligations

The husband and wife are obliged to live together, observe mutual love, respect
and fidelity, and render mutual help and support.120

B. Family domicile

The husband and wife shall fix the family domicile. In case of disagreement, the
court shall decide.

The court may exempt one spouse from living with the other if the latter should
live abroad or there are other valid and compelling reasons for the exemption. However,
such exemption shall not apply if the same is not compatible with the solidarity of the
family.121

C. Support

The spouses are jointly responsible for the support of the family. The expenses for
such support and other conjugal obligations shall be paid from the community property
and, in the absence thereof, from the income or fruits of their separate properties. In case
of insufficiency or absence of said income or fruits, such obligations shall be satisfied from
the separate properties.122

D. Management of household

The right and the duty of both spouses. The expenses for such management shall
be paid in accordance with the provisions of Article 70.123
E. Effect of neglect of duty

The aggrieved party may apply to the court for relief.124

120
Art. 68
121
Art. 69
122
Art. 70
123
Art. 71
124
Art. 72

27

F. Exercise of profession

Either spouse may exercise any legitimate profession, occupation, business or
activity without the consent of the other. The latter may object only on valid, serious, and
moral grounds.

In case of disagreement, the court shall decide whether or not:

(1) The objection is proper, and
(2) Benefit has occurred to the family prior to the objection or thereafter. If the
benefit accrued prior to the objection, the resulting obligation shall be enforced against the
separate property of the spouse who has not obtained consent.

The foregoing provisions shall not prejudice the rights of creditors who acted in
good faith.125

V. Property Relations of the Spouses

A. Marriage Settlements

In order that any modification in the marriage settlements may be valid, it must be
made before the celebration of the marriage, subject to the provisions of Articles 66, 67,126
128, 135 and 136.127

The marriage settlements and any modification thereof shall be in writing, signed
by the parties and executed before the celebration of the marriage. They shall not prejudice
third persons unless they are registered in the local civil registry where the marriage
contract is recorded as well as in the proper registries of properties.128

A minor who according to law may contract marriage may also execute his or her
marriage settlements, but they shall be valid only if the persons designated in Article 14129
to give consent to the marriage are made parties to the agreement.130

For the validity of any marriage settlement executed by a person upon whom a
sentence of civil interdiction has been pronounced or who is subject to any other disability,

125
Art. 73
126
supra
127
Art. 76; see Reference for Arts. 128, 135-6
128
Art. 77
129
The father, mother, surviving parent or guardian, or persons having legal charge of them, in the order
mentioned.
130
Art. 78

28

stipulations that do not depend upon the celebration of the marriages shall be valid. which shall be governed by Article 81. insofar as they are not modified by the following articles135 May be revoked by the donor in the following cases: (1) If the marriage is not celebrated or judicially declared void ab initio except donations made in the marriage settlements.134 These donations are governed by the rules on ordinary donations established in Title III of Book III of the Civil Code. in consideration of the same. (2) With respect to the extrinsic validity of contracts affecting property not situated in the Philippines and executed in the country where the property is located. regardless of the place of the celebration of the marriage and their residence. and in favor of one or both of the future spouses. and (3) With respect to the extrinsic validity of contracts entered into in the Philippines but affecting property situated in a foreign country whose laws require different formalities for its extrinsic validity. the property relations of the spouses shall be governed by Philippine laws. shall be rendered void if the marriage does not take place. including donations between the prospective spouses made therein. 81 134 Art. 79 132 Art. Everything stipulated in the settlements or contracts referred to in the preceding articles in consideration of a future marriage. 82 135 Art. 83 136 supra 29 .133 B. 80 133 Art.132 This rule shall not apply: (1) Where both spouses are aliens. Donations by Reason of Marriage Those which are made before its celebration. However.136 131 Art.it shall be indispensable for the guardian appointed by a competent court to be made a party thereto131 In the absence of a contrary stipulation in a marriage settlement.

(4) Upon legal separation. the conjugal dwelling and the lot on which it is situated. 43 (3) 139 See (3) Subsequent marriages.143 C. The prohibition shall also apply to persons living together as husband and wife without a valid marriage. (6) When the donee has committed an act of ingratitude as specified by the provisions of the Civil Code on donations in general137 Donations by reason of marriage shall remain valid. All creditors of the spouses as well as of the absolute community or the conjugal partnership shall be notified of the proceedings for liquidation. (5) If it is with a resolutory condition and the condition is complied with. between the spouses during the marriage shall be void. shall be adjudicated in accordance with the provisions of Articles 102 and 129. supra 140 supra 141 ibid 142 See (4) Annullable marriages. see Reference for Arts. Void donations by the spouses Every donation or grant of gratuitous advantage. such donations made to said donee are revoked by operation of law. (3). and the delivery of third presumptive legitimes. supra 143 Art.144 137 Art. 50. In the partition. (2) When the marriage takes place without the consent of the parents or guardian. the custody and support of the common children. partition and distribution of the properties of the spouses. as required by law. 86 138 Art. (3) When the marriage is annulled.138 The effects provided for by paragraphs (2). 87 30 . (4) and (5) of Article 43139 and by Article 44140 shall also apply in the proper cases to marriages which are declared ab initio or annulled by final judgment under Articles 40141 and 45. the donee being the guilty spouse. unless such matters had been adjudicated in previous judicial proceedings. direct or indirect. and the donee acted in bad faith. except that if the donee contracted the marriage in bad faith.142 The final judgment in such cases shall provide for the liquidation. except moderate gifts which the spouses may give each other on the occasion of any family rejoicing. 102 & 129 144 Art.

the system of absolute community of property as established in this Code shall govern145 If the future spouses agree upon a regime other than the absolute community of property. the donee shall be entitled to the excess. in the marriage settlements. 84 147 Art. conjugal partnership of gains.146 Donations of future property shall be governed by the provisions on testamentary succession and the formalities of wills. Any excess shall be considered void. In case of foreclosure of the encumbrance and the property is sold for less than the total amount of the obligation secured.150 The creditors of the spouse who made such waiver may petition the court to rescind the waiver to the extent of the amount sufficient to cover the amount of their credits. for the commencement of the community regime at any other time shall be void. Any stipulation. 75 146 Art. In the absence of a marriage settlement. complete separation of property. Absolute Community of property 1. D. or after the marriage has been dissolved or annulled. the donee shall not be liable for the deficiency. express or implied.147 The absolute community of property between spouses shall commence at the precise moment that the marriage is celebrated. General Provisions The future spouses may. 89 150 See Reference 31 . the same shall appear in a public instrument and shall be recorded as provided in Article 77. 85 148 Art. they cannot donate to each other in their marriage settlements more than one- fifth of their present property. or when the regime agreed upon is void. shares and effects of the absolute community of property during the marriage can be made except in case of judicial separation of property. agree upon the regime of absolute community. If the property is sold for more than the total amount of said obligation. 145 Art. 88 149 Art. Donations by reason of marriage of property subject to encumbrances shall be valid. or any other regime.148 No waiver of rights.149 When the waiver takes place upon a judicial separation of property.

jewelry shall form part of the community property. of such property. (3) Property acquired before the marriage by either spouse who has legitimate descendants by a former marriage. the support of illegitimate children shall be governed by the provisions of this Code on Support. However. or by one spouse with the consent of the other. and the fruits as well as the income. 92 154 Art. 90 152 Art. unless it is expressly provided by the donor. 151 Art. liens. (2) All debts and obligations contracted during the marriage by the designated administrator-spouse for the benefit of the community. testator or grantor that they shall form part of the community property. What constitutes Community Property Consist of all the property owned by the spouses at the time of the celebration of the marriage or acquired thereafter. if any. if any. however. unless it is proved that it is one of those excluded therefrom. upon the community property. their common children.154 3. charges and expenses. 91 153 Art. and legitimate children of either spouse. The provisions on co-ownership shall apply to the absolute community of property between the spouses in all matters not provided for. (3) Debts and obligations contracted by either spouse without the consent of the other to the extent that the family may have been benefited. or by both spouses.151 2. (2) Property for personal and exclusive use of either spouse.153 Property acquired during the marriage is presumed to belong to the community. 93 32 . Charges Upon and Obligations of the Community Property (1) The support of the spouses. (4) All taxes. including major or minor repairs.152 Excluded from the community property: (1) Property acquired during the marriage by gratuitous title by either spouse. and the fruits as well as the income thereof.

in case of absence or insufficiency of the exclusive property of the debtor-spouse. or any other kind of gambling. shall be borne by the loser and shall not be charged to the community but any winnings therefrom shall form part of the community property. except those falling under paragraph (9). and (10) Expenses of litigation between the spouses unless the suit is found to be groundless. 94 156 Art.155 Whatever may be lost during the marriage in any game of chance. which must be availed of within five years from the date of the contract implementing such decision. Ownership. betting. Administration. (9) Antenuptial debts of either spouse other than those falling under paragraph (7) of this Article. subject to recourse to the court by the wife for proper remedy. the spouses shall be solidarily liable for the unpaid balance with their separate properties. (6) Expenses to enable either spouse to commence or complete a professional or vocational course. and liabilities incurred by either spouse by reason of a crime or a quasi-delict. or other activity for self-improvement. the husband's decision shall prevail. whether permitted or prohibited by law. If the community property is insufficient to cover the foregoing liabilities. (5) All taxes and expenses for mere preservation made during marriage upon the separate property of either spouse used by the family. the support of illegitimate children of either spouse. 155 Art. (7) Antenuptial debts of either spouse insofar as they have redounded to the benefit of the family. (8) The value of what is donated or promised by both spouses in favor of their common legitimate children for the exclusive purpose of commencing or completing a professional or vocational course or other activity for self-improvement. Enjoyment and Disposition of the Community Property The administration and enjoyment of the community property shall belong to both spouses jointly. In case of disagreement. sweepstakes. 95 33 . the payment of which shall be considered as advances to be deducted from the share of the debtor-spouse upon liquidation of the community.156 4.

100 34 . judicial authorization shall be obtained in a summary proceeding. 98 160 Art. either spouse may. 134-138 161 Art. or (4) Judicial separation of property during the marriage under Article 134 to 138.159 5. The spouse present shall. be given judicial authority to administer or encumber any specific separate property of the other spouse and use the fruits or proceeds thereof to satisfy the latter's share. without the consent of the other.161 157 Art.157 Either spouse may dispose by will of his or her interest in the community property. upon proper petition in a summary proceeding. 97 159 Art. the other spouse may assume sole powers of administration. the disposition or encumbrance shall be void. without just cause. (2) There is a decree of legal separation. These powers do not include disposition or encumbrance without authority of the court or the written consent of the other spouse. Dissolution of Community Regime (1) Upon the death of either spouse. the transaction shall be construed as a continuing offer on the part of the consenting spouse and the third person. (3) In the absence of sufficient community property. make moderate donations from the community property for charity or on occasions of family rejoicing or family distress. (3) The marriage is annulled or declared void. 99. However. In the absence of such authority or consent. and may be perfected as a binding contract upon the acceptance by the other spouse or authorization by the court before the offer is withdrawn by either or both offerors.160 The separation in fact between husband and wife shall not affect the regime of absolute community except that: (1) The spouse who leaves the conjugal home or refuses to live therein. (2) When the consent of one spouse to any transaction of the other is required by law. However.158 Neither spouse may donate any community property without the consent of the other. the separate property of both spouses shall be solidarily liable for the support of the family. 96 158 Art. see Reference for Arts. In the event that one spouse is incapacitated or otherwise unable to participate in the administration of the common properties. shall not have the right to be supported.

(4) The net remainder of the properties of the absolute community shall constitute its net assets. 101 163 supra 164 ibid 35 . listing separately all the properties of the absolute community and the exclusive properties of each spouse. unless a different proportion or division was agreed upon in the marriage settlements. No. parental or property relations.163 (3) Whatever remains of the exclusive properties of the spouses shall thereafter be delivered to each of them. or unless there has been a voluntary waiver of such share provided in this Code. A spouse is deemed to have abandoned the other when her or she has left the conjugal dwelling without intention of returning. The obligations to the family mentioned in the preceding paragraph refer to marital. for judicial separation of property or for authority to be the sole administrator of the absolute community. No. the spouses shall be solidarily liable for the unpaid balance with their separate properties in accordance with the provisions of the second paragraph of Article 94. 162 Art. The spouse who has left the conjugal dwelling for a period of three months or has failed within the same period to give any information as to his or her whereabouts shall be prima facie presumed to have no intention of returning to the conjugal dwelling. (2). which shall be divided equally between husband and wife. In case of insufficiency of said assets. the aggrieved spouse may petition the court for receivership. For purpose of computing the net profits subject to forfeiture in accordance with Articles 43.164 the said profits shall be the increase in value between the market value of the community property at the time of the celebration of the marriage and the market value at the time of its dissolution. (2) The debts and obligations of the absolute community shall be paid out of its assets. 162 6. Liquidation of the Absolute Community Assets and Liabilities Procedure: (1) An inventory shall be prepared. If a spouse without just cause abandons the other or fails to comply with his or her obligations to the family. subject to such precautionary conditions as the court may impose. (2) and 63.

Children below the age of seven years are deemed to have chosen the mother. 102 167 Art. 104 36 .166 Upon the termination of the marriage by death. (5) The presumptive legitimes of the common children shall be delivered upon partition. Should the surviving spouse contract a subsequent marriage without compliance with the foregoing requirements. taking into consideration the best interests of said children. In case there in no such majority. If no judicial settlement proceeding is instituted. the community property shall be liquidated in the same proceeding for the settlement of the estate of the deceased.167 Whenever the liquidation of the community properties of two or more marriages contracted by the same person before the effectivity of this Code is carried out simultaneously. the court shall decide. If upon the lapse of the six months period.168 165 ibid 166 Art. fruits and income of each community shall be determined upon such proof as may be considered according to the rules of evidence. any disposition or encumbrance involving the community property of the terminated marriage shall be void. In case of doubt as to which community the existing properties belong. 103 168 Art. the same shall be divided between the different communities in proportion to the capital and duration of each. no liquidation is made. in the partition of the properties.165 (6) Unless otherwise agreed upon by the parties. a mandatory regime of complete separation of property shall govern the property relations of the subsequent marriage. in accordance with Article 51. the respective capital. the surviving spouse shall liquidate the community property either judicially or extra-judicially within six months from the death of the deceased spouse. the conjugal dwelling and the lot on which it is situated shall be adjudicated to the spouse with whom the majority of the common children choose to remain. unless the court has decided otherwise.

(2) Each acquires during the marriage by gratuitous title.170 The rules provided in Articles 88 and 89171 shall also apply to conjugal partnership of gains. 108 174 Art.169 Under the regime of conjugal partnership of gains. (3) Acquired by right of redemption. the husband and wife place in a common fund the proceeds. General Provisions In case the future spouses agree in the marriage settlements that the regime of conjugal partnership gains shall govern their property relations during marriage. The provisions shall also apply to conjugal partnerships of gains already established between spouses before the effectivity of this Code. the provisions in this Chapter shall be of supplementary application. by barter or by exchange with property belonging to only one of the spouses. 105. see Reference for Art. Conjugal Partnership of Gains 1. as provided in Article 256. 107 173 Art. E.172 The conjugal partnership shall be governed by the rules on the contract of partnership in all that is not in conflict with what is expressly determined in this Chapter or by the spouses in their marriage settlements. without prejudice to vested rights already acquired in accordance with the Civil Code or other laws. Exclusive Property of Each Spouse (1) Brought to the marriage as his or her own.173 2. the net gains or benefits obtained by either or both spouses shall be divided equally between them. products. and (4) Purchased with exclusive money of the wife or of the husband174 169 Art. 256 170 Art. 106 171 supra 172 Art. upon dissolution of the marriage or of the partnership. 109 37 . unless otherwise agreed in the marriage settlements. fruits and income from their separate properties and those acquired by either or both spouses through their efforts or by chance. and.

114 180 Art.176 The alienation of any exclusive property of a spouse administered by the other automatically terminates the administration over such property and the proceeds of the alienation shall be turned over to the owner-spouse.179 Retirement benefits. which shall be recorded in the registry of property of the place the property is located. and in the absence of designation. annuities. gratuities. The spouses retain the ownership.180 175 Art. during the marriage. 111 177 Art. 110 176 Art.178 If the donations are onerous. encumber. 115 38 .175 A spouse of age may mortgage. alienate or otherwise dispose of his or her exclusive property. 112 178 Art. transfer the administration of his or her exclusive property to the other by means of a public instrument. and appear alone in court to litigate with regard to the same. shall pertain to the donee-spouses as his or her own exclusive property. without prejudice to the right of accretion when proper. usufructs and similar benefits shall be governed by the rules on gratuitous or onerous acquisitions as may be proper in each case. share and share alike. administration and enjoyment of their exclusive properties. jointly and with designation of determinate shares.177 Property donated or left by will to the spouses. possession. whenever they have been advanced by the conjugal partnership of gains. Either spouse may. the amount of the charges shall be borne by the exclusive property of the donee spouse. pensions. without the consent of the other spouse. 113 179 Art.

or civil. the sums which may be collected during the marriage in partial payments or by installments on the principal shall be the exclusive property of the spouse. natural. due or received during the marriage from the common property. 3. Conjugal Partnership Property All property acquired during the marriage. losses therefrom shall be borne exclusively by the loser-spouse. such as winnings from gambling or betting. (4) The share of either spouse in the hidden treasure which the law awards to the finder or owner of the property where the treasure is found. as well as the net fruits from the exclusive property of each spouse. 119 39 . (3) The fruits. 116 182 Art. and (7) Those which are acquired by chance. is presumed to be conjugal unless the contrary is proved. In either case.181 The following are conjugal partnership properties: (1) Those acquired by onerous title during the marriage at the expense of the common fund. whether the acquisition appears to have been made. However. 118 184 Art. However. interests falling due during the marriage on the principal shall belong to the conjugal partnership. whether the acquisition be for the partnership.183 Whenever an amount or credit payable within a period of time belongs to one of the spouses. contracted or registered in the name of one or both spouses. work or profession of either or both of the spouses. (5) Those acquired through occupation such as fishing or hunting. (6) Livestock existing upon the dissolution of the partnership in excess of the number of each kind brought to the marriage by either spouse.184 181 Art. 117 183 Art. any amount advanced by the partnership or by either or both spouses shall be reimbursed by the owner or owners upon liquidation of the partnership. industrial. (2) Those obtained from the labor.182 Property bought on installments paid partly from exclusive funds of either or both spouses and partly from conjugal funds belongs to the buyer or buyers if full ownership was vested before the marriage and to the conjugal partnership if such ownership was vested during the marriage. industry. or for only one of the spouses.

(3) Debts and obligations contracted by either spouse without the consent of the other to the extent that the family may have benefited. (4) All taxes. the ownership of the entire property shall be vested upon the reimbursement. made on the separate property of the spouses at the expense of the partnership or through the acts or efforts of either or both spouses shall pertain to the conjugal partnership. or other activity for self-improvement. subject to reimbursement of the value of the property of the owner-spouse at the time of the improvement. which shall be made at the time of the liquidation of the conjugal partnership. In either case. or by both spouses or by one of them with the consent of the other. likewise subject to reimbursement of the cost of the improvement. The ownership of improvements. their common children. subject to the following rules: When the cost of the improvement made by the conjugal partnership and any resulting increase in value are more than the value of the property at the time of the improvement. and expenses. and 40 . whether for utility or adornment. (6) Expenses to enable either spouse to commence or complete a professional. or to the original owner-spouse. and the legitimate children of either spouse. (5) All taxes and expenses for mere preservation made during the marriage upon the separate property of either spouse. (2) All debts and obligations contracted during the marriage by the designated administrator-spouse for the benefit of the conjugal partnership of gains. (8) The value of what is donated or promised by both spouses in favor of their common legitimate children for the exclusive purpose of commencing or completing a professional or vocational course or other activity for self-improvement. Charges upon and obligations of the Conjugal Partnership of Gains (1) The support of the spouse. including major or minor repairs upon the conjugal partnership property. said property shall be retained in ownership by the owner-spouse. (7) Antenuptial debts of either spouse insofar as they have redounded to the benefit of the family. vocational. 4. the entire property of one of the spouses shall belong to the conjugal partnership. charges. otherwise. liens.

121 186 Art. In case of disagreement. or any other kind of gambling whether permitted or prohibited by law. as well as the support of illegitimate children of either spouse. such spouse shall be charged for what has been paid for the purpose above-mentioned. but at the time of the liquidation of the partnership. If the conjugal partnership is insufficient to cover the foregoing liabilities. the transaction shall be construed as a continuing offer on the part of the consenting spouse and the third person. the disposition or encumbrance shall be void. the other spouse may assume sole powers of administration. (9) Expenses of litigation between the spouses unless the suit is found to groundless. the husband's decision shall prevail.186 Whatever may be lost during the marriage in any game of chance or in betting. These powers do not include disposition or encumbrance without authority of the court or the written consent of the other spouse. Administration of the of the Conjugal Partnership of Gains The administration and enjoyment of the conjugal partnership shall belong to both spouses jointly. Neither shall the fines and pecuniary indemnities imposed upon them be charged to the partnership. 122 187 Art.185 The payment of personal debts contracted by the husband or the wife before or during the marriage shall not be charged to the conjugal properties partnership except insofar as they redounded to the benefit of the family. However. if the spouse who is bound should have no exclusive property or if it should be insufficient. which must be availed of within five years from the date of the contract implementing such decision. However. shall be borne by the loser and shall not be charged to the conjugal partnership but any winnings therefrom shall form part of the conjugal partnership property. In the event that one spouse is incapacitated or otherwise unable to participate in the administration of the conjugal properties. sweepstakes.187 5. may be enforced against the partnership assets after the responsibilities enumerated in the preceding Article have been covered. 123 41 . the payment of personal debts contracted by either spouse before the marriage. 185 Art. In the absence of such authority or consent. that of fines and indemnities imposed upon them. the spouses shall be solidarily liable for the unpaid balance with their separate properties. subject to recourse to the court by the wife for proper remedy.

judicial authorization shall be obtained in a summary proceeding.188 Neither spouse may donate any conjugal partnership property without the consent of the other. Dissolution of the regime of Conjugal Partnership of Gains (1) Upon the death of either spouse. either spouse may. The obligations to the family mentioned in the preceding paragraph refer to marital. the aggrieved spouse may petition the court for receivership. 125 190 Art. make moderate donations from the conjugal partnership property for charity or on occasions of family rejoicing or family distress. upon petition in a summary proceeding. subject to such precautionary conditions as the court may impose. (3) The marriage is annulled or declared void. 126 191 Art. The spouse present shall. be given judicial authority to administer or encumber any specific separate property of the other spouse and use the fruits or proceeds thereof to satisfy the latter's share.189 6. without the consent of the other. shall not have the right to be supported. or for authority to be the sole administrator of the conjugal partnership property. 188 Art. (3) In the absence of sufficient conjugal partnership property. (2) When the consent of one spouse to any transaction of the other is required by law. parental or property relations. 124 189 Art. except that: (1) The spouse who leaves the conjugal home or refuses to live therein.and may be perfected as a binding contract upon the acceptance by the other spouse or authorization by the court before the offer is withdrawn by either or both offerors. without just cause. (2) There is a decree of legal separation. for judicial separation of property.191 If a spouse without just cause abandons the other or fails to comply with his or her obligation to the family. or (4) In case of judicial separation of property during the marriage under Articles 134 to 138. 127 42 .190 The separation in fact between husband and wife shall not affect the regime of conjugal partnership. the separate property of both spouses shall be solidarily liable for the support of the family. However.

(3) Each spouse shall be reimbursed for the use of his or her exclusive funds in the acquisition of property or for the value of his or her exclusive property. 128 193 supra 194 ibid 43 . which shall be divided equally between husband and wife.193 (5) Whatever remains of the exclusive properties of the spouses shall thereafter be delivered to each of them. listing separately all the properties of the conjugal partnership and the exclusive properties of each spouse. (7) The net remainder of the conjugal partnership properties shall constitute the profits. Liquidation of the Conjugal Partnership Assets and Liabilities Procedure: (1) An inventory shall be prepared. the ownership of which has been vested by law in the conjugal partnership. The spouse who has left the conjugal dwelling for a period of three months or has failed within the same period to give any information as to his or her whereabouts shall be prima facie presumed to have no intention of returning to the conjugal dwelling. A spouse is deemed to have abandoned the other when he or she has left the conjugal dwelling without intention of returning. the loss or deterioration of movables used for the benefit of the family. (4) The debts and obligations of the conjugal partnership shall be paid out of the conjugal assets. unless a different proportion or division was agreed upon in the marriage settlements or unless there has been a voluntary waiver or forfeiture of such share as provided in this Code. In case of insufficiency of said assets. if any. (6) Unless the owner had been indemnified from whatever source. in accordance with the provisions of paragraph (2) of Article 121. belonging to either spouse. shall be paid to said spouse from the conjugal funds. (8) The presumptive legitimes of the common children shall be delivered upon the partition in accordance with Article 51.192 7. the spouses shall be solidarily liable for the unpaid balance with their separate properties. (2) Amounts advanced by the conjugal partnership in payment of personal debts and obligations of either spouse shall be credited to the conjugal partnership as an asset thereof.194 192 Art. even due to fortuitous event.

195 Upon the termination of the marriage by death. any disposition or encumbrance involving the conjugal partnership property of the terminated marriage shall be void.199 195 Art. taking into consideration the best interests of said children. but from this shall be deducted that amount received for support which exceeds the fruits or rents pertaining to them. the surviving spouse shall liquidate the conjugal partnership property either judicially or extra-judicially within six months from the death of the deceased spouse. the same shall be divided between the different partnerships in proportion to the capital and duration of each. If no judicial settlement proceeding is instituted. the conjugal partnership property shall be liquidated in the same proceeding for the settlement of the estate of the deceased. Children below the age of seven years are deemed to have chosen the mother. In case of doubt as to which partnership the existing properties belong.198 From the common mass of property support shall be given to the surviving spouse and to the children during the liquidation of the inventoried property and until what belongs to them is delivered. In case there is no such majority. the respective capital. be adjudicated to the spouse with whom the majority of the common children choose to remain. unless otherwise agreed upon by the parties. 197 Art.197 The Rules of Court on the administration of estates of deceased persons shall be observed in the appraisal and sale of property of the conjugal partnership. a mandatory regime of complete separation of property shall govern the property relations of the subsequent marriage. (9) In the partition of the properties.196 Whenever the liquidation of the conjugal partnership properties of two or more marriages contracted by the same person before the effectivity of this Code is carried out simultaneously. 133 44 . unless the court has decided otherwise. the court shall decide. 130. 132 199 Art. and other matters which are not expressly determined in this Chapter. Should the surviving spouse contract a subsequent marriage without compliance with the foregoing requirements. the conjugal dwelling and the lot on which it is situated shall. fruits and income of each partnership shall be determined upon such proof as may be considered according to the rules of evidence. 131 198 Art. If upon the lapse of the six-month period no liquidation is made. 129 196 Art.

(4) That the spouse of the petitioner has abandoned the latter or failed to comply with his or her obligations to the family as provided for in Article 101. the separation of property between spouses during the marriage shall not take place except by judicial order.201 (5) That the spouse granted the power of administration in the marriage settlements has abused that power. and for the separation of their common properties. 136 45 . In the cases provided for in Numbers (1). shall be listed in the petition and notified of the filing thereof.200 Any of the following shall be considered sufficient cause for judicial separation of property: (1) That the spouse of the petitioner has been sentenced to a penalty which carries with it civil interdiction. and (6) That at the time of the petition. F. as well as the personal creditors of the spouse. The court shall take measures to protect the creditors and other persons with pecuniary interest. All creditors of the absolute community or of the conjugal partnership of gains.203 200 Art. (2) That the spouse of the petitioner has been judicially declared an absentee. 135 203 Art. the presentation of the final judgment against the guilty or absent spouse shall be enough basis for the grant of the decree of judicial separation of property. (2) and (3).202 The spouses may jointly file a verified petition with the court for the voluntary dissolution of the absolute community or the conjugal partnership of gains. Separation of Property of the Spouses and Administration of Common Property by One Spouse During the Marriage In the absence of an express declaration in the marriage settlements. (3) That loss of parental authority of the spouse of petitioner has been decreed by the court. 134 201 supra 202 Art. Such judicial separation of property may either be voluntary or for sufficient cause. the spouses have been separated in fact for at least one year and reconciliation is highly improbable.

reconcile and resume common life. (6) When the spouses who have separated in fact for at least one year. 139 207 Art. 140 46 . the provisions on complete separation of property shall apply. No voluntary separation of property may thereafter be granted. 204 Art. being satisfied that the spouse granted the power of administration in the marriage settlements will not again abuse that power. or (7) When after voluntary dissolution of the absolute community of property or conjugal partnership has been judicially decreed upon the joint petition of the spouses. (2) When the absentee spouse reappears. Once the separation of property has been decreed. the absolute community or the conjugal partnership of gains shall be liquidated in conformity with this Code. During the pendency of the proceedings for separation of property.207 The spouses may. (4) When the spouse who has left the conjugal home without a decree of legal separation resumes common life with the other.204 After dissolution of the absolute community or of the conjugal partnership. in the same proceedings where separation of property was decreed. they agree to the revival of the former property regime. the absolute community or the conjugal partnership shall pay for the support of the spouses and their children. 137 205 Art. (3) When the court.206 The separation of property shall not prejudice the rights previously acquired by creditors. 138 206 Art. (5) When parental authority is judicially restored to the spouse previously deprived thereof. authorizes the resumption of said administration. file a motion in court for a decree reviving the property regime that existed between them before the separation of property in any of the following instances: (1) When the civil interdiction terminates.205 The petition for separation of property and the final judgment granting the same shall be recorded in the proper local civil registries and registries of property.

In the latter case. 145 47 . or any other just cause. (3) When one spouse is sentenced to a penalty which carries with it civil interdiction. 142. 210 Art. dispose of.211 Each spouse shall own. the property not agreed upon as separate shall pertain to the absolute community. possess. 208 Art. to the current market value of their separate properties. or (4) When one spouse becomes a fugitive from justice or is in hiding as an accused in a criminal case.210 Separation of property may refer to present or future property or both. Regime of Separation of Property Should the future spouses agree in the marriage settlements that their property relations during marriage shall be governed by the regime of separation of property. natural. the provisions of this Chapter shall be suppletory. in case of insufficiency or default thereof. business or industry and all fruits. 209 Art. or.208 The administration of all classes of exclusive property of either spouse may be transferred by the court to the other spouse: (1) When one spouse becomes the guardian of the other. conflict of interest.209 G. It may be total or partial. due or received during the marriage from his or her separate property. without need of the consent of the other. 141. The revival of the former property regime shall be governed by Article 67. the court shall appoint a suitable person to be the administrator.212 Both spouses shall bear the family expenses in proportion to their income. If the other spouse is not qualified by reason of incompetence. 143 211 Art. To each spouse shall belong all earnings from his or her profession. (2) When one spouse is judicially declared an absentee. industrial or civil. administer and enjoy his or her own separate estate. 144 212 Art.

147 48 . If one of the parties is validly married to another. and shall be owned by them in equal shares. In the absence of proof to the contrary. without the consent of the other. his or her shall be forfeited in the manner provided in the last paragraph of the preceding Article. If the party who acted in bad faith is not validly married to another. In the absence of descendants. In the absence of proof to the contrary. his or her share in the co- ownership shall accrue to the absolute community or conjugal partnership existing in such valid marriage. In all cases. however. For purposes of this Article. Neither party can encumber or dispose by acts inter vivos of his or her share in the property acquired during cohabitation and owned in common. a party who did not participate in the acquisition by the other party of any property shall be deemed to have contributed jointly in the acquisition thereof if the former's efforts consisted in the care and maintenance of the family and of the household. In case of default of or waiver by any or all of the common children or their descendants. each vacant share shall belong to the respective surviving descendants. The liabilities of the spouses to creditors for family expenses shall. the forfeiture shall take place upon termination of the cohabitation. live exclusively with each other as husband and wife without the benefit of marriage or under a void marriage. work or industry. or industry shall be owned by them in common in proportion to their respective contributions. their contributions and corresponding shares are presumed to be equal.213 H. such share shall belong to the innocent party. The same rule and presumption shall apply to joint deposits of money and evidences of credit. be solidary. the share of the party in bad faith in the co-ownership shall be forfeited in favor of their common children. property. When only one of the parties to a void marriage is in good faith. only the properties acquired by both of the parties through their actual joint contribution of money. Property Regime of Unions Without Marriage When a man and a woman who are capacitated to marry each other. their wages and salaries shall be owned by them in equal shares and the property acquired by both of them through their work or industry shall be governed by the rules on co-ownership.214 In cases of cohabitation not falling under the preceding Article. until after the termination of their cohabitation. 213 Art. properties acquired while they lived together shall be presumed to have been obtained by their joint efforts. 146 214 Art.

The foregoing rules on forfeiture shall likewise apply even if both parties are in both faith. 148 49 .215 215 Art.

whether of the full or half-blood. (2) The validity of a marriage or a legal separation. 151 No compromise upon the following questions shall be valid: (1) The civil status of persons. constituted jointly by the husband and the wife or by an unmarried head of a family. (5) The jurisdiction of courts.217 No suit between members of the same family shall prosper unless it should appear from the verified complaint or petition that earnest efforts toward a compromise have been made. 2035) 219 Art.218 B.VI. 150 218 Art. The Family A. the same case must be dismissed. the family home continues to be such and is exempt 216 Art. being the foundation of the nation. The Family Home The family home. From the time of its constitution and so long as any of its beneficiaries actually resides therein. (2) Between parents and children.219 The family home is deemed constituted on a house and lot from the time it is occupied as a family residence. (4) Future support. practice or agreement destructive of the family shall be recognized or given effect. 217 Art. and the land on which it is situated. Consequently. 149. (3) Among brothers and sisters. is the dwelling house where they and their family reside. (6) Future legitime (Art. This rules shall not apply to cases which may not be the subject of compromise under the Civil Code. If it is shown that no such efforts were in fact made. 152 50 .216 Family relations include those: (1) Between husband and wife. (3) Any ground for legal separation. The Family as an Institution The family. is a basic social institution which public policy cherishes and protects. but that the same have failed. family relations are governed by law and no custom.

if the value of the currency changes after the adoption of this Code. 222 Art. (2) For debts incurred prior to the constitution of the family home. forced sale or attachment except as hereinafter provided and to the extent of the value allowed by law. whether the relationship be legitimate or illegitimate. forced sale or attachment except: (1) For nonpayment of taxes.220 The beneficiaries of a family home are: (1) The husband and wife.from execution. and (4) For debts due to laborers. 153 221 Art. (3) For debts secured by mortgages on the premises before or after such constitution. descendants. 156 51 . property that is the subject of a conditional sale on installments where ownership is reserved by the vendor only to guarantee payment of the purchase price may be constituted as a family home. brothers and sisters. It may also be constituted by an unmarried head of a family on his or her own property. or of the exclusive properties of either spouse with the latter's consent. materialmen and others who have rendered service or furnished material for the construction of the building. the value most favorable for the constitution of a family home shall be the basis of evaluation. 154. or such amounts as may hereafter be fixed by law. 155 223 Art. or an unmarried person who is the head of a family. ascendants. mechanics. and (2) Their parents. builders. the amount of the three hundred thousand pesos in urban areas. 220 Art.223 The actual value of the family home shall not exceed. architects. at the time of its constitution.221 The family home shall be exempt from execution. In any event. and two hundred thousand pesos in rural areas. Nevertheless.222 The family home must be part of the properties of the absolute community or the conjugal partnership. who are living in the family home and who depend upon the head of the family for legal support.

the court shall decide. The excess. Urban areas are deemed to include chartered cities and municipalities whose annual income at least equals that legally required for chartered cities.231 224 Art. 161 231 Art. the same rule and procedure shall apply. alienated. At the execution sale. 158 226 Art. 157 225 Art.230 The provisions in this Chapter shall also govern existing family residences insofar as said provisions are applicable. and he has reasonable grounds to believe that the family home is actually worth more than the maximum amount fixed in Article 157 228. This rule shall apply regardless of whoever owns the property or constituted the family home.229 For purposes of availing of the benefits of a family home. no bid below the value allowed for a family home shall be considered. If the increased actual value exceeds the maximum allowed in Article 157 and results from subsequent voluntary improvements introduced by the person or persons constituting the family home. a person may constitute.225 The family home shall continue despite the death of one or both spouses or of the unmarried head of the family for a period of ten years or for as long as there is a minor beneficiary. he may apply to the court which rendered the judgment for an order directing the sale of the property under execution. if any. 159 227 supra 228 ibid 229 Art. All others are deemed to be rural areas. and a majority of the beneficiaries of legal age.226 When a creditor whose claims is not among those mentioned in Article 155227 obtains a judgment in his favor. or by any of the beneficiaries. donated. by the owner or owners of the property. and then to the liabilities under the judgment and the costs.224 The family home may be sold. the latter's spouse. or be the beneficiary of. The proceeds shall be applied first to the amount mentioned in Article 157. 162 52 . only one family home. In case of conflict. assigned or encumbered by the owner or owners thereof with the written consent of the person constituting the same. and the heirs cannot partition the same unless the court finds compelling reasons therefor. shall be delivered to the judgment debtor. The court shall so order if it finds that the actual value of the family home exceeds the maximum amount allowed by law as of the time of its constitution. 160 230 Art.

which absolutely prevented sexual intercourse. Legitimate Children The filiation of children may be by nature or by adoption.233 Children conceived and born outside a valid marriage are illegitimate. or (c) serious illness of the husband. 165 235 supra 53 . The instrument shall be recorded in the civil registry together with the birth certificate of the child. 163 233 Art. except in the instance provided in the second paragraph of Article 164.VII. the child could not have been that of the husband.235 or 232 Art.234 Legitimacy of a child may be impugned only on the following grounds: (1) That it was physically impossible for the husband to have sexual intercourse with his wife within the first 120 days of the 300 days which immediately preceded the birth of the child because of: (a) the physical incapacity of the husband to have sexual intercourse with his wife. unless otherwise provided in this Code. Paternity and Filiation A. that both of them authorized or ratified such insemination in a written instrument executed and signed by them before the birth of the child. (b) the fact that the husband and wife were living separately in such a way that sexual intercourse was not possible. Children conceived as a result of artificial insemination of the wife with the sperm of the husband or that of a donor or both are likewise legitimate children of the husband and his wife. (2) That it is proved that for biological or other scientific reasons. Natural filiation may be legitimate or illegitimate. 164 234 Art.232 Children conceived or born during the marriage of the parents are legitimate. provided.

166 237 Art. intimidation. whichever is earlier.238 The legitimacy or illegitimacy of a child born after three hundred days following the termination of the marriage shall be proved by whoever alleges such legitimacy or illegitimacy.239 The action to impugn the legitimacy of the child shall be brought within one year from the knowledge of the birth or its recording in the civil register. should reside in the city or municipality where the birth took place or was recorded. violence. even though it be born within the three hundred days after the termination of the former marriage.237 If the marriage is terminated and the mother contracted another marriage within three hundred days after such termination of the former marriage. 168 239 Art. 170 54 . or undue influence.240 236 Art. 167 238 Art. the period shall be two years if they should reside in the Philippines. If the husband or. the written authorization or ratification of either parent was obtained through mistake. any of his heirs. in a proper case. and three years if abroad. provided it be born within three hundred days after the termination of the former marriage. (3) That in case of children conceived through artificial insemination. the period shall be counted from the discovery or knowledge of the birth of the child or of the fact of registration of said birth. if the husband or.236 The child shall be considered legitimate although the mother may have declared against its legitimacy or may have been sentenced as an adulteress. 169. 240 Art. (2) A child born after one hundred eighty days following the celebration of the subsequent marriage is considered to have been conceived during such marriage. all of his heirs do not reside at the place of birth as defined in the first paragraph or where it was recorded. If the birth of the child has been concealed from or was unknown to the husband or his heirs. fraud. these rules shall govern in the absence of proof to the contrary: (1) A child born before one hundred eighty days after the solemnization of the subsequent marriage is considered to have been conceived during the former marriage. in his default.

or (2) An admission of legitimate filiation in a public document or a private handwritten instrument and signed by the parent concerned. 171. and (3) To be entitled to the legitimate and other successional rights granted to them by the Civil Code.244 241 Art. their brothers and sisters. and in proper cases.241 B. 174 55 . Proof of Filiation By any of the following: (1) The record of birth appearing in the civil register or a final judgment. 173 244 Art. (2) To receive support from their parents. 172 243 Art. or (3) If the child was born after the death of the husband.242 The action to claim legitimacy may be brought by the child during his or her lifetime and shall be transmitted to the heirs should the child die during minority or in a state of insanity. the heirs shall have a period of five years within which to institute the action. in conformity with the provisions of the Civil Code on Surnames. their ascendants. in conformity with the provisions of this Code on Support. In the absence of the foregoing evidence. (2) If he should die after the filing of the complaint without having desisted therefrom.243 Legitimate children shall have the right: (1) To bear the surnames of the father and the mother. In these cases. The heirs of the husband may impugn the filiation of the child within the period prescribed in the preceding article only in the following cases: (1) If the husband should die before the expiration of the period fixed for bringing his action. by: (1) The open and continuous possession of the status of a legitimate child. or (2) Any other means allowed by the Rules of Court and special laws. 242 Art.

249 Legitimation shall take place by a subsequent valid marriage between parents. illegitimate children may use the surname of their father if their filiation has been expressly recognized by the father through the record of birth appearing in the civil register. However. 176. and shall be entitled to support. The father has the right to institute an action before the regular courts to prove non-filiation during his lifetime. 178 251 Art. 181 56 .252 The legitimation of children who died before the celebration of the marriage shall benefit their descendants. as amended by R. 179 252 Art.246 in which case the action may be brought during the lifetime of the alleged parent.254 245 supra 246 Ibid.251 The effects of legitimation shall retroact to the time of the child's birth. The legitime of each illegitimate child shall consist of one-half (1/2) of the legitime of a legitimate child. 180 253 Art.253 Legitimation may be impugned only by those who are prejudiced in their rights. 9255 249 Art.250 Legitimated children shall enjoy the same rights as legitimate children. within five years from the time their cause of action accrues.A.248 D. 175 248 Art. The action must be brought within the same period specified in Article 173. The annulment of a voidable marriage shall not affect the legitimation. 177 250 Art.245 except when the action is based on the second paragraph of Article 172. Legitimated Children Only children conceived and born outside of wedlock of parents who. C. at the time of the conception of the former. 247 Art. Illegitimate Children May establish their illegitimate filiation in the same way and on the same evidence as legitimate children. were not disqualified by any impediment to marry each other may be legitimated.247 Illegitimate children shall use the surname and shall be under the parental authority of their mother. or when an admission in a public document or private handwritten instrument is made by the father.

8552 57 . at least sixteen (16) years older than the adoptee.A. Who can adopt (a) Any Filipino citizen of legal age. has not been convicted of any crime involving moral turpitude. Adoption A. or is the spouse of the adoptee's parent.VIII. that he/she has been living in the Philippines for at least three (3) continuous years prior to the filing of the application for adoption and maintains such residence until the adoption decree is entered. or (ii) one who seeks to adopt the legitimate son/daughter of his/her Filipino spouse. or (c) The guardian with respect to the ward after the termination of the guardianship and clearance of his/her financial accountabilities. or (iii) one who is married to a Filipino citizen and seeks to adopt jointly with his/her spouse a relative within the fourth (4th) degree of consanguinity or affinity of the Filipino spouse. in possession of full civil capacity and legal rights. of good moral character. b) Any alien possessing the same qualifications as above stated for Filipino nationals: Provided. Further. emotionally and psychologically capable of caring for children. and who is in a position to support and care for his/her children in keeping with the means of the family. and that his/her government allows the adoptee to enter his/her country as his/her adopted son/daughter: Provided. 182 255 R. that he/she has been certified by his/her diplomatic or consular office or any appropriate government agency that he/she has the legal capacity to adopt in his/her country. That his/her country has diplomatic relations with the Republic of the Philippines. Domestic Adoption Act of 1998255 1. 254 Art. That the requirements on residency and certification of the alien's qualification to adopt in his/her country may be waived for the following: (i) a former Filipino citizen who seeks to adopt a relative within the fourth (4th) degree of consanguinity or affinity. The requirement of sixteen (16) year difference between the age of the adopter and adoptee may be waived when the adopter is the biological parent of the adoptee.

except in the following cases: (i) if one spouse seeks to adopt the legitimate son/daughter of the other. said person has been consistently considered and treated by the adopter(s) as his/her own child since minority. 16 58 . That no proceedings shall be initiated within six (6) months from the time of death of said parent(s). (e) A child whose adoption has been previously rescinded. 3. or (ii) if one spouse seeks to adopt his/her own illegitimate son/daughter: Provided. In case husband and wife jointly adopt. or one spouse adopts the illegitimate son/daughter of the other.256 2. Who can be adopted (a) Any person below eighteen (18) years of age who has been administratively or judicially declared available for adoption. (d) A person of legal age if.257 The adoptee shall be considered the legitimate son/daughter of the adopter(s) for all intents and purposes and as such is entitled to all the rights and obligations provided by law to legitimate sons/daughters born to them without discrimination of any kind. the other spouse has signified his/her consent thereto. all legal ties between the biological parent(s) and the adoptee shall be severed and the same shall then be vested on the adopter(s). prior to the adoption. joint parental authority shall be exercised by the spouses. 7 257 Sec. To this 256 Sec. or (iii) if the spouses are legally separated from each other. (b) The legitimate son/daughter of one spouse by the other spouse. Husband and wife shall jointly adopt. or (f) A child whose biological or adoptive parent(s) has died: Provided. (c) An illegitimate son/daughter by a qualified adopter to improve his/her status to that of legitimacy. Rights of an adopted child Except in cases where the biological parent is the spouse of the adopter.

(4) When the adopters concur with the illegitimate children and the surviving spouse of the adopted. one-half to be inherited by the parents or ascendants and the other half. (2) When the parents. the adopter(s) and the adoptee shall have reciprocal rights of succession without distinction from legitimate filiation. they shall divide the entire estate. guidance. the law on testamentary succession shall govern.258 In legal and intestate succession. except that if the adopter is the spouse of the parent by nature of the adopted. including the right of the adopted to use the surname of the adopters. they shall divide the entire estate in equal shares. Adoption shall have the following effects: (1) For civil purposes. 17 259 Art. the adoptee is entitled to love. (2) The parental authority of the parents by nature over the adopted shall terminate and be vested in the adopters. and (3) The adopted shall remain an intestate heir of his parents and other blood relatives. by the adopters. parental authority over the adopted shall be exercised jointly by both spouses. if the adoptee and his/her biological parent(s) had left a will.end. 189.259 Legal or intestate succession to the estate of the adopted shall be governed by the following rules: (1) Legitimate and illegitimate children and descendants and the surviving spouse of the adopted shall inherit from the adopted. one-half to be inherited by the spouse or the illegitimate children of the adopted and the other half. one-third to be 258 Sec. by the adopters. (3) When the surviving spouse or the illegitimate children of the adopted concur with the adopters. in accordance with the ordinary rules of legal or intestate succession. the adopted shall be deemed to be a legitimate child of the adopters and both shall acquire the reciprocal rights and obligations arising from the relationship of parent and child. However. legitimate or illegitimate. or the legitimate ascendants of the adopted concur with the adopter. they shall divide the entire estate in equal shares. and support in keeping with the means of the family. FC 59 .

one-third by the surviving spouse. and one-third by the adopters. (5) When only the adopters survive. All the foregoing effects of rescission of adoption shall be without prejudice to the penalties imposable under the Penal Code if the criminal acts are properly proven. (c) sexual assault or violence. (b) attempt on the life of the adoptee. The court shall order the Civil Registrar to cancel the amended certificate of birth of the adoptee and restore his/her original birth certificate. 60 . 19. the adoption may be rescinded on any of the following grounds committed by the adopter(s): (a) repeated physical and verbal maltreatment by the adopter(s) despite having undergone counseling. id. The reciprocal rights and obligations of the adopter(s) and the adoptee to each other shall be extinguished. 261 See Reference 262 Sec. the parental authority of the adoptee's biological parent(s). Rescission of adoption Upon petition of the adoptee. However. then the ordinary rules of legal or intestate succession shall apply. but only as of the date of judgment of judicial rescission. 190. Vested rights acquired prior to judicial rescission shall be respected. 20. or (d) abandonment and failure to comply with parental obligations. Succession rights shall revert to its status prior to adoption. and (6) When only collateral blood relatives of the adopted survive. with the assistance of the Department if a minor or if over eighteen (18) years of age but is incapacitated. or the legal custody of the Department shall be restored if the adoptee is still a minor or incapacitated. being in the best interest of the child.260 4. the adopter(s) may disinherit the adoptee for causes provided in Article 919261 of the Civil Code. shall not be subject to rescission by the adopter(s). Adoption. if known.263 260 Art.262 If the petition is granted.A. as guardian/counsel. they shall inherit the entire estate. R. id.inherited by the illegitimate children. 8552 263 Sec.

265 264 R. (g) agrees to uphold the basic rights of the child as embodied under Philippine laws. (d) has not been convicted of a crime involving moral turpitude. (e) is eligible to adopt under his/her national law. the U.Country Adoption Act of 1995264 1. Convention on the Rights of the Child. and has undergone the appropriate counseling from an accredited counselor in his/her country. 9 61 . (c) has the capacity to act and assume all rights and responsibilities of parental authority under his national laws. and to abide by the rules and regulations issued to implement the provisions of this Act.N. (f) is in a position to provide the proper care and support and to give the necessary moral values and example to all his children. Who can Adopt An alien or a Filipino citizen permanently residing abroad may file an application for inter-country adoption of a Filipino child if he/she: (a) is at least twenty-seven (27) years of age and at least sixteen (16) years older than the child to be adopted. at the time of application unless the adopter is the parent by nature of the child to be adopted or the spouse of such parent: (b) if married. Inter. (h) comes from a country with whom the Philippines has diplomatic relations and whose government maintains a similarly authorized and accredited agency and that adoption is allowed under his/her national laws. his/her spouse must jointly file for the adoption. and (i) possesses all the qualifications and none of the disqualifications provided herein and in other applicable Philippine laws. C.A. including the child to be adopted. 8043 265 Sec.

dwelling. trade or vocation. (b) Birth certificate/foundling certificate. even beyond the age of majority. (4) Parents and their illegitimate children and the legitimate and illegitimate children of the latter. Transportation shall include expenses in going to and from school. and (f) Recent photo of the child. 195 62 . Support A. the following documents must be submitted to the Board: (a) Child study. medical attendance. 8 267 Art. (3) Parents and their legitimate children and the legitimate and illegitimate children of the latter. and (5) Legitimate brothers and sisters. Who can be adopted Only a legally free child may be the subject of inter-country adoption. as necessary. 2. In order that such child may be considered for placement. (d) Medical evaluation /history.266 IX. in keeping with the financial capacity of the family. What it Comprises Everything indispensable for sustenance.267 B. education and transportation. or to and from place of work. whether of full or half-blood268 266 Sec. The education of the person entitled to be supported referred to in the preceding paragraph shall include his schooling or training for some profession. (2) Legitimate ascendants and descendants. (c) Deed of voluntary commitment/decree of abandonment/death certificate of parents. (e) Psychological evaluation. Who are Obliged (1) The spouses. clothing. 194 268 Art.

it is given by a stranger.271 Whenever two or more persons are obliged to give support. descendants.272 When the obligation to give support falls upon two or more persons. the latter shall have a right to claim the same from the former. except only when the need for support of the brother or sister. being of age.273 When. which shall be deducted from the share of the spouse obliged upon the liquidation of the absolute community or of the conjugal partnership. 196 271 Art. unless it appears that he gave it without intention of being reimbursed. the absolute community or the conjugal partnership. are likewise bound to support each other to the full extent set forth in Article 194269. and brothers and sisters. in case of urgent need and by special circumstances. the judge may order only one of them to furnish the support provisionally. only the separate property of the person obliged to give support shall be answerable provided that in case the obligor has no separate property. in which case the child shall be preferred. the order established in the preceding article shall be followed. whether of the full or half-blood. (2) The descendants in the nearest degree. the payment of the same shall be divided between them in proportion to the resources of each. if financially capable. 199 273 Art. 206 63 .274 269 supra 270 Art. Brothers and sisters not legitimately related. 197 272 Art. whether legitimate or illegitimate. and (4) The brothers and sisters. is due to a cause imputable to the claimant's fault or negligence.270 In case of legitimate ascendants. without the knowledge of the person obliged to give support. 200 274 Art. should the latter not have sufficient means to satisfy all claims. without prejudice to his right to claim from the other obligors the share due from them. shall advance the support. (3) The ascendants in the nearest degree. whether legitimately or illegitimately related. unless the concurrent obligees should be the spouse and a child subject to parental authority. When two or more recipients at the same time claim support from one and the same person legally obliged to give it. the liability shall devolve upon the following persons in the order herein provided: (1) The spouse. However.

with right of reimbursement from the person obliged to give support. 207 276 Art.275 In case of contractual support or that given by will. Support during marriage litigation The spouses and their children shall be supported from the properties of the absolute community or the conjugal partnership. the court may order that the guilty spouse shall give support to the innocent one. Support pendente lite may be claimed in accordance with the Rules of Court. but it shall not be paid except from the date of judicial or extrajudicial demand. any third person may furnish support to the needy individual.279 E. After the final judgment granting the petition. This shall particularly apply when the father or mother of a child under the age of majority unjustly refuses to support or fails to give support to the child when urgently needed. 275 Art. 198 278 Art. specifying the terms of such order. When Demandable From the time the person who has a right to receive the same needs it for maintenance. the obligation of mutual support between the spouses ceases. 279 Art.277 D. 202 64 . 201. contractual support shall be subject to adjustment whenever modification is necessary due to changes of circumstances manifestly beyond the contemplation of the parties. Furthermore. in case of legal separation. When the person obliged to support another unjustly refuses or fails to give support when urgently needed by the latter.276 C. However. Amount Shall be in proportion to the resources or means of the giver and to the necessities of the recipient.278 Support shall be reduced or increased proportionately. according to the reduction or increase of the necessities of the recipient and the resources or means of the person obliged to furnish the same. 208 277 Art. the excess in amount beyond that required for legal support shall be subject to levy on attachment or execution.

209 284 Art. his heirs shall not be obliged to return what he has received in advance. Attachment The right to receive support as well as any money or property obtained as such support shall not be levied upon on attachment or execution. 210 285 Art. The latter alternative cannot be availed of in case there is a moral or legal obstacle thereto.283 Parental authority and responsibility may not be renounced or transferred except in the cases authorized by law. General Provisions Pursuant to the natural right and duty of parents over the person and property of their unemancipated children. 205 283 Art.285 In case of absence or death of either parent. the father's decision shall prevail. mental and physical character and well-being. 211 65 . 204 282 Art. parental authority and responsibility shall include the caring for and rearing them for civic consciousness and efficiency and the development of their moral. In case of disagreement.280 F. or by receiving and maintaining in the family dwelling the person who has a right to receive support. Children shall always observe respect and reverence towards their parents and are obliged to obey them as long as the children are under parental authority. unless there is a judicial order to the contrary.282 X. Parental Authority A. the parent present shall continue exercising parental authority. 203 281 Art.284 The father and the mother shall jointly exercise parental authority over the persons of their common children.281 G. Options The person obliged to give support shall have the option to fulfill the obligation either by paying the allowance fixed. The remarriage of the surviving parent shall not affect the 280 Art. Payment shall be made within the first five (5) days of each corresponding month or when the recipient dies.

213. In case several survive. 288 Art. the one designated by the court. 214 289 Art. orphanages and similar institutions duly accredited by the proper government agency.286 In case of separation of the parents. unless the parent chosen is unfit.291 In case of foundlings. especially the choice of the child over seven years of age. 215 290 supra 291 Art. the same order of preference shall be observed. unless unfit or disqualified. absence or unsuitability of the parents. Whenever the appointment or a judicial guardian over the property of the child becomes necessary. Substitute and Special Parental Authority The following persons shall exercise substitute parental authority over the child in the order indicated: (1) The surviving grandparent. parental authority shall be entrusted in summary judicial proceedings to heads of children's homes.parental authority over the children. and (3) The child's actual custodian. parental authority shall be exercised by the parent designated by the Court.290 (2) The oldest brother or sister. except when such testimony is indispensable in a crime against the descendant or by one parent against the other. in a criminal case.289 B. over twenty-one years of age. 214. unless the court appoints another person to be the guardian of the person or property of the children. taking into account the same consideration mentioned in the preceding article.288 No descendant shall be compelled. to testify against his parents and grandparents. shall exercise the authority. over twenty-one years of age. 212 287 Art. The Court shall take into account all relevant considerations. unless unfit or disqualified. abandoned neglected or abused children and other children similarly situated.287 In case of death.292 286 Art. substitute parental authority shall be exercised by the surviving grandparent. 217 66 . as provided in Art. 216 292 Art.

All other cases not covered by this and the preceding articles shall be governed by the provisions of the Civil Code on quasi-delicts. 219 67 . companionship and understanding. self-reliance. supervise their activities. recreation and association with others. and prevent them from acquiring habits detrimental to their health. entity or institution. 293 Art. and inspire in them compliance with the duties of citizenship. The respective liabilities of those referred to in the preceding paragraph shall not apply if it is proved that they exercised the proper diligence required under the particular circumstances. judicial guardians or the persons exercising substitute parental authority over said minor shall be subsidiarily liable. to support. Authority and responsibility shall apply to all authorized activities whether inside or outside the premises of the school. protect them from bad company. studies and morals. (3) To provide them with moral and spiritual guidance. and to provide for their upbringing in keeping with their means. advice and counsel. or the individual. instruction or custody.293 Those given the authority and responsibility under the preceding Article shall be principally and solidarily liable for damages caused by the acts or omissions of the unemancipated minor. integrity. educate and instruct them by right precept and good example. Effect of Parental Authority upon the Persons of the Children The parents and those exercising parental authority shall have with the respect to their unemancipated children on wards the following rights and duties: (1) To keep them in their company. industry and thrift. its administrators and teachers. self-discipline. The school. inculcate in them honesty. The parents. 218 294 Art. (5) To represent them in all matters affecting their interests. entity or institution engaged in child are shall have special parental authority and responsibility over the minor child while under their supervision. (4) To furnish them with good and wholesome educational materials. (2) To give them love and affection.294 C. stimulate their interest in civic affairs.

296 The courts may appoint a guardian of the child's property or a guardian ad litem when the best interests of the child so requires. irrespective of the merits of the petition. may petition the proper court of the place where the child resides. The child shall be entitled to the assistance of counsel. in their absence or incapacity.295 Parents and other persons exercising parental authority shall be civilly liable for the injuries and damages caused by the acts or omissions of their unemancipated children living in their company and under their parental authority subject to the appropriate defenses provided by law. 222 298 Art. and (8) To perform such other duties as are imposed by law upon parents and guardians. for an order providing for disciplinary measures over the child. 221 297 Art. Upon proper petition or at its own instance. 223 299 Art. the court may terminate the commitment of the child whenever just and proper. and a summary hearing shall be conducted wherein the petitioner and the child shall be heard.297 The parents or. The parent exercising parental authority shall not interfere with the care of the child whenever committed but shall provide for his support. the court may also order the deprivation or suspension of parental authority or adopt such other measures as it may deem just and proper. 224 68 . or when the circumstances so warrant. However. the individual.298 The measures referred to in the preceding article may include the commitment of the child for not more than thirty days in entities or institutions engaged in child care or in children's homes duly accredited by the proper government agency. if in the same proceeding the court finds the petitioner at fault. either of his choice or appointed by the court. entity or institution exercising parental authority. 220 296 Art.299 295 Art. (6) To demand from them respect and obedience. (7) To impose discipline on them as may be required under the circumstances.

In any case. or. if the child resides in a foreign country. The ordinary rules on guardianship shall be merely suppletory except when the child is under substitute parental authority.000. unless the title or transfer provides otherwise. unless the owner. the proceeds thus give in whole or in part shall not be charged to the child's legitime. grants the entire proceeds to the child. In case of disagreement. or the guardian is a stranger. in which case the ordinary rules on guardianship shall apply. the father's decision shall prevail.300 The property of the unemancipated child earned or acquired with his work or industry or by onerous or gratuitous title shall belong to the child in ownership and shall be devoted exclusively to the latter's support and education. the parent concerned shall be required to furnish a bond in such amount as the court may determine. 227 69 . to guarantee the performance of the obligations prescribed for general guardians. 226 302 Art.301 If the parents entrust the management or administration of any of their properties to an unemancipated child. 225 301 Art. The child shall be given a reasonable monthly allowance in an amount not less than that which the owner would have paid if the administrator were a stranger. Effects of Parental Authority upon the Property of the Children The father and the mother shall jointly exercise legal guardianship over the property of the unemancipated common child without the necessity of a court appointment. The right of the parents over the fruits and income of the child's property shall be limited primarily to the child's support and secondarily to the collective daily needs of the family. or a parent has remarried. unless there is a judicial order to the contrary. The petition shall be docketed as a summary special proceeding in which all incidents and issues regarding the performance of the obligations referred to in the second paragraph of this Article shall be heard and resolved. the net proceeds of such property shall belong to the owner. in the proper court of the place where the property or any part thereof is situated. Where the market value of the property or the annual income of the child exceeds P50. A verified petition for approval of the bond shall be filed in the proper court of the place where the child resides.302 300 Art. D. but not less than ten per centum (10%) of the value of the property or annual income.

(2) Upon the death of the child.303 Parental authority also terminates:304 (1) Upon adoption of the child. (2) Gives the child corrupting orders. The grounds enumerated above are deemed to include cases which have resulted from culpable negligence of the parent or the person exercising parental authority. (2) Upon appointment of a general guardian. (3) Compels the child to beg.305 Parental authority is suspended upon conviction of the parent or the person exercising the same of a crime which carries with it the penalty of civil interdiction. 229 306 Art. (3) Upon judicial declaration of abandonment of the child in a case filed for the purpose. 303 Art. or (5) Upon judicial declaration of absence or incapacity of the person exercising parental authority. The authority is automatically reinstated upon service of the penalty or upon pardon or amnesty of the offender. (4) Upon final judgment of a competent court divesting the party concerned of parental authority. 230 70 . or (3) Upon emancipation of the child. 228 304 unless subsequently revived by a final judgment 305 Art. or (4) Subjects the child or allows him to be subjected to acts of lasciviousness. counsel or example.306 The court in an action filed for the purpose in a related case may also suspend parental authority if the parent or the person exercising the same: (1) Treats the child with excessive harshness or cruelty. Suspension or Termination of Parental Authority Parental authority terminates permanently: (1) Upon the death of the parents. E.

312 307 Art. 232 309 Art. If the degree of seriousness so warrants. majority commences at the age of twenty-one years. such person shall be permanently deprived by the court of such authority. Emancipation Emancipation takes place by the attainment of majority. 236 71 . 6809 312 Art. 234. In no case shall the school administrator.309 XI. the court shall deprive the guilty party of parental authority or adopt such other measures as may be proper under the circumstances.307 If the person exercising parental authority has subjected the child or allowed him to be subjected to sexual abuse.308 The person exercising substitute parental authority shall have the same authority over the person of the child as the parents.A. The suspension or deprivation may be revoked and the parental authority revived in a case filed for the purpose or in the same proceeding if the court finds that the cause therefor has ceased and will not be repeated. or (2) By the recording in the Civil Register of an agreement in a public instrument executed by the parent exercising parental authority and the minor at least eighteen years of age. 311 Art. Such emancipation shall be irrevocable.310 Emancipation also takes place: (1) By the marriage of the minor.311 Emancipation for any cause shall terminate parental authority over the person and property of the child who shall then be qualified and responsible for all acts of civil life. or the welfare of the child so demands. 233 310 Unless otherwise provided. teacher of individual engaged in child care exercising special parental authority inflict corporal punishment upon the child. as amended by R. 231 308 Art.

the final deed duly executed by the parties shall be submitted to and approved by the court.XII. 319 Art.313 When a husband and wife are separated in fact. if none. may be litigated only in a separate action.318 In case of non-appearance of the spouse whose consent is sought. 244 72 . a verified petition may be filed in court alleging the foregoing facts.316 Upon the filing of the petition. abandonment by one of the other. 242 318 Art. 243. 241 317 Art. be exercised by the proper court authorized to hear family cases. if the court deems it useful. the parties may be assisted by counsel at the succeeding conferences and hearings. In any case.314 Claims for damages by either spouse.315 Jurisdiction over the petition shall. The petition shall attach the proposed deed. embodying the transaction. and shall require such appearance. 240 316 Art. of said petition. shall describe in detail the said transaction and state the reason why the required consent thereto cannot be secured. if any. or one has abandoned the other and one of them seeks judicial authorization for a transaction where the consent of the other spouse is required by law but such consent is withheld or cannot be obtained. if one exists. or in the regional trial court or its equivalent sitting in the place where either of the spouses resides. ordering said spouse to show cause why the petition should not be granted. except costs of the proceedings. 239 315 Art. Summary Judicial Proceedings in Family Law Cases The procedural rules provided for shall apply as regards separation in fact between husband and wife. if possible. whose consent to the transaction is required. After the initial conference. the court shall notify the other spouse. and.317 A preliminary conference shall be conducted by the judge personally without the parties being assisted by counsel. The notice shall be accompanied by a copy of the petition and shall be served at the last known address of the spouse concerned.319 313 Art. the court shall inquire into the reasons for his failure to appear. and incidents involving parental authority. 238 314 Art. upon proof of notice to the other spouse. on or before the date set in said notice for the initial conference.

322 The petition for judicial authority to administer or encumber specific separate property of the abandoning spouse and to use the fruits or proceeds thereof for the support of the family shall also be governed by these rules.325 Such petitions shall be verified and filed in the proper court of the place where the child resides. 247 323 Art. 250 327 Art.326 Upon the filing of the petition. If testimony is needed. 252 73 . the court shall notify the parents or. 245 321 Art.320 If the petition is not resolved at the initial conference. said petition shall be decided in a summary hearing on the basis of affidavits. In any case. in their absence or incapacity.329 320 Art. documentary evidence or oral testimonies at the sound discretion of the court. 249 326 Art. the judge shall endeavor to protect the interests of the non-appearing spouse. the individuals. the attendance of the non-consenting spouse is not secured.321 The judgment of the court shall be immediately final and executor. the court may proceed ex parte and render judgment as the facts and circumstances may warrant. the court shall specify the witnesses to be heard and the subject-matter of their testimonies.327 The rules in Chapter 2328 hereof shall also govern summary proceedings under this Chapter insofar as they are applicable. 246 322 Art. 225 and 235324 of this Code involving parental authority shall be verified. If. directing the parties to present said witnesses. entities or institutions exercising parental authority over the child. 251 328 Separation in Fact 329 Art. 248 324 supra 325 Art.323 Petitions filed under Articles 223. despite all efforts.

the paternal shall have a better right.333 The funeral shall be in accordance with the expressed wishes of the deceased. under article 294. 256 331 See Reference 332 Art. Retroactivity of the Family Code Insofar as it does not prejudice or impair vested or acquired rights in accordance with the Civil Code or other laws. In the absence of such expression. 306 334 Art. Funerals The duty and the right to make arrangements for the funeral of a relative shall be in accordance with the order established for support.335 Any person who shows disrespect to the dead.332 Every funeral shall be in keeping with the social position of the deceased. if the deceased is one of the spouses.331 In case of descendants of the same degree.334 No human remains shall be retained. 305 333 Art. interred. 309 337 Art. the oldest shall be preferred.337 330 Art. after consulting the other members of the family.XIII. In case of ascendants. or wrongfully interferes with a funeral shall be liable to the family of the deceased for damages. In case of doubt. 307 335 Art. 305. supra 336 Art.336 The construction of a tombstone or mausoleum shall be deemed a part of the funeral expenses.330 XIV. his religious beliefs or affiliation shall determine the funeral rites. disposed of or exhumed without the consent of the persons mentioned in articles 294 and 305. 310 74 . or of brothers and sisters. and shall be chargeable to the conjugal partnership property. 308. material and moral. Art. the form of the funeral shall be decided upon by the person obliged to make arrangements for the same.

365 341 Art. 369 345 Art. such as "Mrs.343 Children conceived before the decree annulling a voidable marriage shall principally use the surname of the father. 368 344 Art. she may resume her maiden name and surname.342 Illegitimate children referred to in article 287 shall bear the surname of the mother.340 A natural child acknowledged by both parents shall principally use the surname of the father.346 338 other articles repealed by Family Code 339 Art. An adopted child shall bear the surname of the adopter. she shall resume her maiden name and surname. If recognized by only one of the parents. However. Use of surnames338 Legitimate and legitimated children shall principally use the surname of the 339 father. 364 340 Art.341 Natural children by legal fiction shall principally employ the surname of the father. a natural child shall employ the surname of the recognizing parent. 367 343 Art. and the wife is the guilty party. she may choose to continue employing her former husband's surname. 366 342 Art.344 A married woman may use: (1) Her maiden first name and surname and add her husband's surname. but prefixing a word indicating that she is his wife. If she is the innocent spouse. or (2) She or the former husband is married again to another person. 370 75 . unless: (1) The court decrees otherwise.XV."345 In case of annulment of marriage. or (2) Her maiden first name and her husband's surname or (3) Her husband's full name.

348 In case of identity of names and surnames. and so on. the wife shall continue using her name and surname employed before the legal separation. 371 347 Art.352 The unauthorized or unlawful use of another person's surname gives a right of action to the latter. 372 348 Art. 380 76 . provided it is done in good faith and there is no injury to third persons. no person shall use different names and surnames. or (2) Add the Roman numerals II.355 346 Art. 376. 377 353 Art.351 Usurpation of a name and surname may be the subject of an action for damages and other relief. amended by R.354 Except as provided in the preceding article. 379 355 Art. 375 351 Art. Grandsons and other direct male descendants shall either: (1) Add a middle name or the mother's surname. 374 350 Art. 373 349 Art. Pen names and stage names cannot be usurped. in accordance with article 370. 378 354 Art.A. the word "Junior" can be used only by a son. When legal separation has been granted. the younger person shall be obliged to use such additional name or surname as will avoid confusion. 9048. III.350 No person can change his name or surname without judicial authority.353 The employment of pen names or stage names is permitted.347 A widow may use the deceased husband's surname as though he were still living.349 In case of identity of names and surnames between ascendants and descendants. infra 352 Art.

XVI. If the absentee left no spouse. the judge.357 A.358 The appointment referred to in the preceding article having been made. Absence If there is a doubt. by the rules concerning guardians. an absence of only two years shall be sufficient. 381 359 Art. as between two or more persons who are called to succeed each other. Provisional measures in case of absence When a person disappears from his domicile. shall prove the same. it is presumed that they died at the same time and there shall be no transmission of rights from one to the other. In case of disappearance where there is danger of death under the circumstances set forth in the provisions of Article 391 of the Civil Code. his whereabouts being unknown. the judge shall take the necessary measures to safeguard the rights and interests of the absentee and shall specify the powers. the spouse present shall be preferred when there is no legal separation. unless before the celebration of the subsequent marriage. the prior spouse had been absent for four consecutive years and the spouse present has a well- founded belief that the absent spouse was already dead. FC 358 Art. any competent person may be appointed by the court. 41. in the absence of proof. at the instance of an interested party. and without leaving an agent to administer his property. obligations and remuneration of his representative. 43.360 356 Art. as to which of them died first. or a friend. whoever alleges the death of one prior to the other. This same rule shall be observed when under similar circumstances the power conferred by the absentee has expired. a relative. the spouse present must institute a summary proceeding as provided in this Code for the declaration of presumptive death of the absentee.359 In the appointment of a representative.356 A marriage contracted by any person during subsistence of a previous marriage shall be null and void. or if the spouse present is a minor. according to the circumstances. regulating them. 383 77 . CC 357 Art. without prejudice to the effect of reappearance of the absent spouse. may appoint a person to represent him in all that may be necessary. For the purpose of contracting the subsequent marriage. 382 360 Art.

or that of the conjugal partnership. Administration of the Property of the Absentee An administrator of the absentee's property shall be appointed in accordance with Article 383. 384 362 Art. 389 78 . In these cases the administrator shall cease in the performance of his office. (4) Those who may have over the property of the absentee some right subordinated to the condition of his death. (3) When a third person appears. and the property shall be at the disposal of those who may have a right thereto. his absence may be declared. (2) When the death of the absentee is proved and his testate or intestate heirs appear. 385 363 Art. Declaration of Absence Two (2) years having elapsed without any news about the absentee or since the receipt of the last news. and five (5) years in case the absentee has left a person in charge of the administration of his property. (2) The heirs instituted in a will. 386 364 Art. (3) The relatives who may succeed by the law of intestacy. B. without judicial authority. 387 365 Art.362 The judicial declaration of absence shall not take effect until six (6) months after its publication in a newspaper of general circulation.363 C. who may present an authentic copy of the same. 388 366 Art.365 The administration shall cease in any of the following cases: (1) When the absentee appears personally or by means of an agent. showing by a proper document that he has acquired the absentee's property by purchase or other title.364 The wife who is appointed as an administratrix of the husband's property cannot alienate or encumber the husband's property.361 The following may ask for the declaration of absence: (1) The spouse present.366 361 Art.

but he cannot claim either fruits or rents. including the division of the estate among the heirs: (1) A person on board a vessel lost during a sea voyage. Presumption of Death After an absence of seven (7) years. (2) A person in the armed forces who has taken part in war. (3) A person who has been in danger of death under other circumstances and his existence has not been known for four years. he shall recover his property in the condition in which it may be found. 392 79 . who has not been heard of for four years since the loss of the vessel or aeroplane. or an aeroplane which is missing. 391 369 Art. The absentee shall not be presumed dead for the purpose of opening his succession till after an absence of ten years. If he disappeared after the age of seventy-five years. and has been missing for four years. 390 368 Art. he shall be presumed dead for all purposes. an absence of five years shall be sufficient in order that his succession may be opened. and the price of any property that may have been alienated or the property acquired therewith. except for those of succession.368 If the absentee appears. it being unknown whether or not the absentee still lives.367 The following shall be presumed dead for all purposes.369 367 Art. or without appearing his existence is proved. D.

Arts. it shall be the duty of the clerk of the court which issued the decree to ascertain whether the same has been registered.370 The following shall be entered in the civil register: (1) Births. (15) voluntary emancipation of a minor. (4) legal separations.372 370 Art. (3) deaths. and if this has not been done. (2) marriages. (5) annulments of marriage. (14) judicial determination of filiation.371 In cases of legal separation. 407-413 Acts. Civil Registrar A. 408 372 Art. events and judicial decrees concerning the civil status of persons shall be recorded in the civil register. (6) judgments declaring marriages void from the beginning. naturalization and other judicial orders mentioned in the preceding article. to send a copy of said decree to the civil registry of the city or municipality where the court is functioning. adoption. or (12) recovery of citizenship. (9) acknowledgments of natural children. (8) adoptions.XVII. 407 371 Art. (7) legitimations. (13) civil interdiction. 409 80 . (11) loss. and (16) changes of name. (10) naturalization.

”. 410 374 Art. without a judicial order. However. Rule 108. Correction of Clerical Errors377 C. the civil registrar may exempt himself from such liability if he proves that he has taken every reasonable precaution to prevent the unlawful alteration. 411 375 Art.373 Every civil registrar shall be civilly responsible for any unauthorized alteration made in any civil register. See Reference 378 ibid 81 .374 No entry in a civil register shall be changed or corrected. 412 376 Art. 9048. entitled “An Act Authorizing the City or Municipal Civil Registrar or the Consul General to Correct a Clerical or Typographical Error in an Entry and/or Change of First Name or Nickname in the Civil Register Without Need of a Judicial Order…. to any person suffering damage thereby.376 B. The books making up the civil register and all documents relating thereto shall be considered public documents and shall be prima facie evidence of the facts therein contained.375 All other matters pertaining to the registration of civil status shall be governed by special laws.A. 413 377 R. Rules of Court378 373 Art.

quarries and slag dumps. Lands. Mines. while they are attached to the land or form 379 All things which are. and not merely as a part of the whole. Trees. to the soil may be considered movable. bed. 416 to 417 384 Pars. 3 & 7 82 . buildings. constructions (adhered to the soil).cannot be transferred from place to place. 1 & 8 385 The materials constituting a building which is the subject of demolition are movable.those which move by themselves (both immovable and movable in nature).386 b. 415 383 Art. a. c. Individuality or substantivity380 II. manner to be an integral part thereof. Special: real property which by any b) By incorporation – essentially movables special provisions of law is considered as but are attached to an immovable in a fixed personalty. Classification381 Immovables or real382 Movables383 a) By nature – those which cannot be General Rule: All things which can be carried from place to place. Utility for the satisfaction of moral and economic wants 2. Mixed/semi-movable . not adhered. Movable – excluded from the enumeration of immovable and can be moved from place to place without damage thereto. appropriation which are not included in the while the matter thereof forms part of the enumeration of immovables. roads and they are fixed.385 Exclusions: those movables susceptible of 2. In parts: forces of nature which are 1. Immovable .384 transported from place to place without impairment of the real property to which 1. the human hair becomes property only when it is detached from the hair 381 Tests: a. and waters either running or stagnant. 382 Art. it can exist by itself. Characteristics 1. or may be the object of appropriation 380 that is. hence. PROPERTY379 I. 2. plants and growing fruits brought under control by science. b. Susceptibility of appropriation 3. A structure which is merely superimposed. 386 Pars.

placed in a building or on lands. Obligations and actions which have for their object movables391 or demandable 2. c) By destination – essentially movables but are placed in an immovable as an added utility. object.388 2. by the owner of the immovable in such a manner that it reveals the intention to attach them permanently to the tenements. lake or coast. are intended by their nature and object to remain at a fixed place on a river.392 in a fixed manner in such a way that it cannot be separated therefrom without d. 1. and which tend directly to meet the needs of such industry or works. though floating. in case the owner has placed or preserved them with the intention to attach them permanently to the land. Fertilizers actually used on a piece of land.387 3. instruments or implements intended by the owner of the tenement for an industry or works which may be carried on in a building or land. and the animals in these places. reliefs painting or other objects for use or ornamentation. 4. 387 Rex vinta 388 Indirect utility 389 Direct utility 83 . Machinery. Docks and structures which. Shares of stocks or interests in breaking the material or deterioration of the juridical entities.389 3. Everything attached to an immovable sums. c.an integral part of an immovable. Statutes. Animal houses or breeding places.

Hidden Treasure393 Belongs to the owner of the land. he shall not be entitled to any share of the treasure. building. or of the State or any of its subdivisions. one-half (1/2) thereof shall be allowed to the finder. or other precious objects which are hidden and unknown. 2. When the discovery is made on the property of another.395 391 corporeal or intangible 392 These are really personal rights because they have a definite passive subject (e.classified by express provision of law because it is regarded as united to the immovable property.390 1. intellectual property). such that their finding is a real discovery. the State may acquire them at their just price. 394 Art. 390 Par.g. Real rights over immovable property. which shall be divided in conformity with the rule stated. 3. or other property on which it is found.394 By treasure is understood. A. Contracts for public works. and by chance. any hidden and unknown deposit of money. the lawful ownership of which does not appear. If the things found be of interest to science or the arts. 10 393 Treasure consists of money. or other precious objects. Servitudes. jewels. If the finder is a trespasser. jewelry.d) By analogy . 439 84 . for legal purposes. 438 395 Art.

441 398 Art.396 1. although unborn. and the young and other products of animals. (2) The industrial fruits. 442 399 Art. 444 85 . Fruits To the owner belongs: (1) The natural fruits. Civil fruits are the rents of buildings.400 396 Art. Right of Accession The ownership of property gives the right by accession to everything which is produced thereby. it is sufficient that they are in the womb of the mother. and preservation. B. 440 397 Art. 443 400 Art. the price of leases of lands and other property and the amount of perpetual or life annuities or other similar income.399 Only such as are manifest or born are considered as natural or industrial fruits. gathering. With respect to animals. or which is incorporated or attached thereto.397 Natural fruits are the spontaneous products of the soil. either naturally or artificially.398 He who receives the fruits has the obligation to pay the expenses made by a third person in their production. (3) The civil fruits. Industrial fruits are those produced by lands of any kind through cultivation or labor.

408 401 See reference 402 Art. after payment of the indemnity provided for in articles 546 and 548401. Builder. It is understood that there is bad faith on the part of the landowner whenever the act was done with his knowledge and without opposition on his part. planter. not only on the part of the person who built. planted or sowed on the land of another.402 In the cases of the two preceding articles. 452 406 Art. 448 403 Refers to Arts. 454 86 . he shall pay reasonable rent.406 When the landowner acted in bad faith and the builder. sowing or planting. planter or sower. the rights of one and the other shall be the same as though both had acted in good faith. sower in good faith The owner of the land on which anything has been built.405 If there was bad faith. 451 405 Art. With respect to Immovable Property a. sower on land of another in concept of owner (1) Builder. planter. infra 404 Art. and the one who sowed.403 the landowner is entitled to damages from the builder.404 The builder. or to oblige the one who built or planted to pay the price of the land. the court shall fix the terms thereof. However. 453 407 supra 408 Art. if the owner of the land does not choose to appropriate the building or trees after proper indemnity. The parties shall agree upon the terms of the lease and in case of disagreement. the builder or planter cannot be obliged to buy the land if its value is considerably more than that of the building or trees. In such case. planter or sower proceeded in good faith. shall have the right to appropriate as his own the works. the proper rent. 449 and 450. 2. sown or planted in good faith. planter or sower in bad faith is entitled to reimbursement for the necessary expenses of preservation of the land. but also on the part of the owner of such land. the provisions of Article 447407 shall apply.

loses what is built. If the owner of the materials.413 3. This provision shall not apply if the owner makes use of the right granted by article 450. plants or seeds belong to a third person who has not acted in bad faith. and the sower the proper rent. see Reference for Art. 2176 411 Art. Alluvion To the owners of lands adjoining the banks of rivers belong the accretion which they gradually receive from the effects of the current of the waters.410 (2) Builder. planted or sown without right to indemnity. plants or sows in bad faith on the land of another. 455 410 Art. 456. 457 87 . planted or sowed. If the materials. plants or seeds has been paid by the builder.414 409 Art. sower in bad faith He who builds. planted or sown in bad faith may demand the demolition of the work. Usufructuary The usufructuary may make on the property held in usufruct such useful improvements or expenses for mere pleasure as he may deem proper. 579 414 Art.411 The owner of the land on which anything has been built. provided he does not alter its form or substance. planter or sower. planter. but he shall have no right to be indemnified therefor. Lands adjoining river banks a. which gives right to damages under Article 2176. remove such improvements. however. the owner of the land shall answer subsidiarily for their value and only in the event that the one who made use of them has no property with which to pay. He may. or that the planting or sowing be removed. should it be possible to do so without damage to the property. or he may compel the builder or planter to pay the price of the land.412 b. the latter may demand from the landowner the value of the materials and labor.409 Good faith does not necessarily exclude negligence. in order to replace things in their former condition at the expense of the person who built. 450 413 Art. 449 412 Art.

415 Whenever a river. opens a new bed through a private estate. 460 88 . which value shall not exceed the value of the area occupied by the new bed. provided that he removes the same within two years418 Trees uprooted and carried away by the current of the waters belong to the owner of the land upon which they may be cast. the owners of the affected lands may not compel the government to restore the river to its former bed. Change of course of river River beds which are abandoned through the natural change in the course of the waters ipso facto belong to the owners whose lands are occupied by the new course in proportion to the area lost. 462 417 Art. 461 416 Art. 459 419 Art. changing its course by natural causes. a permit therefor is secured from the Secretary of Public Works. The owners of the affected lands may undertake to return the river or stream to its old bed at their own expense.419 River beds which are abandoned through the natural change in the course of the waters ipso facto belong to the owners whose lands are occupied by the new course in proportion to the area lost. However. creek or torrent segregates from an estate on its bank a known portion of land and transfers it to another estate. the owners of the lands adjoining the old bed shall 415 Art.417 c. If such owners claim them. the owner of the land to which the segregated portion belonged retains the ownership of it. the former owners of the new bed shall be the owners of the abandoned bed in proportion to the area lost by each. Avulsion Whenever the current of a river. However. b. 58. Transportation and Communication and work pertaining thereto are commenced within two (2) years from the change in the course of the river or stream. the owners of the lands adjoining the old bed shall have the right to acquire the same by paying the value thereof. Provided. this bed shall become of public dominion. if the owners do not claim them within six months. nor can they restrain the government from taking steps to revert the river or stream to its former course. they shall pay the expenses incurred in gathering them or putting them in a safe place. 1067 or the Water Code 418 Art. P.416 When a river or stream suddenly changes its course to traverse private lands.D. The owners of the land thus affected are not entitled to compensation for any damage sustained thereby. However.

Islands Islands which may be formed on the seas within the jurisdiction of the Philippines.423 Islands which through successive accumulation of alluvial deposits are formed in non-navigable and non-floatable rivers. and growing fruits. the owner of the nearer margin shall be the sole owner thereof. By Object 1. 465 425 See also Classification. changing its course by natural causes. 462 422 Art. leaving a piece of land or part thereof isolated.420 Whenever a river. Real or immovable425 (1) Land. 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.424 C.422 4. 461 421 Art. (3) Everything attached to an immovable in a fixed manner. in such a way that it cannot be separated therefrom without breaking the material or deterioration of the object. in which case it shall be divided longitudinally in halves. 463 423 Art.have the right to acquire the same by paying the value thereof. plants. which value shall not exceed the value of the area occupied by the new bed. buildings. 464 424 Art.421 Whenever the current of a river divides itself into branches. paintings or other objects for use or ornamentation. the owner of the land retains his ownership. (4) Statues. (2) Trees. on lakes. belong to the owners of the margins or banks nearest to each of them. He also retains it if a portion of land is separated from the estate by the current. or to the owners of both margins if the island is in the middle of the river. and on navigable or floatable rivers belong to the State. opens a new bed through a private estate. reliefs. while they are attached to the land or form an integral part of an immovable. supra 89 . this bed shall become of public dominion. roads and constructions of all kinds adhered to the soil. If a single island thus formed be more distant from one margin than from the other. 420 Art.

the animals in these places are included. 2. and slag dumps. (10) Contracts for public works. (2) Real property which by any special provision of law is considered as personalty. commercial and industrial entities. and which tend directly to meet the needs of the said industry or works. and servitudes and other real rights over immovable property. receptacles. in case their owner has placed them or preserves them with the intention to have them permanently attached to the land. (9) Docks and structures which. and (4) In general. are intended by their nature and object to remain at a fixed place on a river. 426 ibid 90 . lake. quarries. although they may have real estate. (5) Machinery. (6) Animal houses. (7) Fertilizer actually used on a piece of land. Movable property is either consumable or nonconsumable. beehives. fish ponds or breeding places of similar nature. and (2) Shares of stock of agricultural. (8) Mines. though floating. and forming a permanent part of it. pigeon-houses. (3) Forces of nature which are brought under control by science. and waters either running or stagnant. To the first class belong those movables which cannot be used in a manner appropriate to their nature without their being consumed. to the second class belong all the others. or coast. all things which can be transported from place to place without impairment of the real property to which they are fixed. while the matter thereof forms part of the bed. Also considered as personal property: (1) Obligations and actions which have for their object movables or demandable sums. Personal or Movable426 (1) Those movables susceptible of appropriation which are not included in the preceding article. instruments or implements intended by the owner of the tenement for an industry or works which may be carried on in a building or on a piece of land.

it is subject to the principles on private properties (e.g. Of public dominion It is not owned by the state but pertains to the state. relation to his own private property E. By Owner 1. and of State entities Patrimonial property428 Property of private ownership Property of the State owned by it in its This refers to all property belonging to private or proprietary capacity. For public use (e. 428 Used by the political subdivision as a juridical person in its private capacity (e. 2. rivers) b. 91 .g. public buildings) c. which. and of which it may dispose. For public service (e.g. subject to prescription 429 Consumable goods cannot be the subject matter of a contract of commodatum unless the purpose of the contract is not the consumption of the object as when it is merely for exhibition. tax sales).g. Fungible/non-fungible Consumable429 – cannot be used in a manner appropriate to their nature without being consumed 427 a. D. Patrimonial property (i) Distinction between private property of individual persons. property acquired through escheat proceedings. canals. For the development of the national wealth. roads. whether national. Of private ownership a.427 The ownership of such properties is in the social group. as territorial sovereign exercises certain juridical prerogatives over such property. to the same extent as private individuals according to laws and regulations on the procedure of exercising such rights. private persons either individually or collectively and those belonging to the State The state has the same rights over this kind and any of its political subdivisions which of property as a private individual in are patrimonial in nature. provincial or municipal. By Nature 1. Consumable/non-consumable vs. It is the property which the unit has the same rights. Hence.

433 fruendi.not consumed by use. Ownership A. dispose. quantity and quality. or the right to alienate. 10 bottles of wine which I have in my room 432 The right to enjoy. Jus utendi.436 disponendi437 (possidendi) (1) Actions to recover ownership and possession of real property 430 e.belong to a common genus permitting substitution of the same kind. Rights in general432 1. Fungibles . 433 the right to use 434 the right to enjoy the fruits 435 the right to destroy (but cannot harm others) 436 The right of action available to the owner to recover the property against the holder or possessor 437 The right to dispose.435 vindicandi. 10 bottles of wine 431 e. Bundle of rights a.Non-consumable .434 abutendi.430 Non-fungibles – specifically determined and cannot be substituted431 III.g.g. transform 92 . encumber. and recover a thing without further limitations than those established by law or the will of the owner.

The defendant. Sublessees are bound by the judgment rendered against the lessee in an ejectment case even if they were not made parties thereto. Issue: Physical possession. the only damages that can be recovered in an Ejectment suit are the fair rental value or the reasonable compensation for the use and occupation of the real property. It consists is the recovery of the of forcible entry and of the summary actions of: dominion over the property unlawful detainer. Identity of the Property 2.Action de facto but possession de for recovery of material jure. Plaintiff’s title to the property 439 plenary action Whenever the owner is dispossessed by any other means (e. Prayer: for the restitution of possession. he may maintain this action to recover possession without waiting for the expiration of 1 year before commencing this suit. 93 . Unlawful Detainer - Action for recovery of 438 This action should be filed in case of refusal of a party to deliver possession of property due to an adverse claim of ownership. Jurisdiction: MTC (summary proceedings). the object possession. accion interdictal Accion reinvindicatoria438 Accion publiciana439 Accion interdictal440 An action to recover real Ordinary civil proceeding to Summary action to recover property based on recover the better right of physical or material ownership. strategy. involved is not possession 1. Other damages must be claimed in an ordinary action. direct or indirect) to vacate. except in cases possession only. The as owner. possession of real property when a person originally in possession was deprived thereof by force. however. with damages and costs.g. No demand is necessary for a lessee to vacate when it is specifically provided for in the agreement. Forcible entry . Whatever the amount of plaintiff’s damages will not affect the court’s jurisdiction. threat or stealth 2. However. accion publiciana. intimidation. (a) Distinctions between accion reivindicatoria. may set up a counterclaim for moral damages and recover it if it is within the jurisdiction of the court. It may also be brought after the expiration of 1 year if no action had been instituted for forcible entry or unlawful detainer 440 Period to file action: Within 1 year after such unlawful deprivation or withholding of possession. possession is due to tolerance of the owner) other than FISTS. Requisites: 1. The decision in such action is res judicata in the question of possession. commencing from the time of last demand (oral or written. Here.

strategy. such that he claims the possession for himself and not for the co-ownership. by virtue of any contract. Can be brought by anyone of the co–owners. An adverse decision in the action is not necessarily res judicata with respect to the other co– owners not being parties to the action. A co-owner may bring such an action without the necessity of joining all the other co-owners as co- plaintiffs because the suit is deemed to be instituted for the benefit of all. Action may be brought not only against strangers but even against a co–owner. c. or other person against whom the possession of the same was unlawfully withheld after the expiration or termination of the right to hold possession. However. withholds possession after the expiration or threat or stealth termination of his right thereto. but they are bound where it appears that the action was instituted in their behalf with their express or implied consent. The effect of the action will be to obtain recognition of the co-ownership. (b) Distinction between forcible entry and unlawful detainer441 Forcible entry Unlawful detainer As to when possession became unlawful Possession of the defendant is unlawful Possession is inceptively lawful but becomes from the beginning as he acquires illegal from the time defendant unlawfully possession by Force. possession of any land or building by landlord. vendee. 94 . b. intimidation. and the plaintiff cannot recover any material or determinate part of the property. vendor. As to the necessity of demand No previous demand for the defendant to Demand is jurisdictional if the ground is vacate is necessary non-payment of rentals or failure to comply with the lease contract As to necessity of proof of prior physical possession 441 See Accion Interdictal. The defendant cannot be excluded because he has a right to possess as a co-owner. supra Ejectment suit: a. if the action is for the benefit of the plaintiff alone. the action will NOT prosper.

Long possession. Also. they become strong evidence of ownership. (3) Requisites for recovery of property (a) Proof of right Evidence to prove ownership: a.442 442 proof of ownership Tax declarations are not conclusive proof of ownership. d. c. Deed of sale. Patent duly registered in the Registry of Property by the grantee. (c) Reliance on strength of own evidence not weakness of defendant’s claim Strength of plaintiff’s title. However. Torrens title. e. b. (b) Identity Identity of the property.remedy when the complaint prays for the recovery of the possession of personal property. the failure of a person to declare land for taxation may be admitted to show that he is not the owner thereof. Title from the Spanish Government. when coupled with possession for a period sufficient for prescription. 95 . Plaintiff must prove that he was in prior Plaintiff need not have been in prior physical possession of the premises until physical possession he was deprived thereof by the defendant As to when the 1 year period is counted from From the date of actual entry on the land From the date of last demand or last letter of demand (2) Actions for recovery of possession of movable Property Replevin .

Prescription 5. without a passive subject individually from another. a right enforceable only against a whole world definite person or group of persons Right pertaining to a person over a specific Right pertaining to the person to demand thing. Law 2. Work which includes Intellectual creation 2. to do personally enforced or not to do. Distinction between real and personal rights Real Rights Personal Rights Jus in re. a right enforceable against the Jus ad rem. Original 2. Occupation 1. Modes of acquiring ownership 1. Donation 4. Succession 443 obligation 444 specific thing 96 . Object is corporeal thing443 Object is an intangible thing444 Creates juridical relations through mode & Creates juridical relations through title title Extinguished through loss or destruction of Not extinguished through loss or thing destruction of thing B. Derivative Original Derivative 1. 2. determined against whom such right may be the fulfillment of a prestation to give. Tradition 3. as a definite passive subject.

C. shall not be entitled to of raising revenues to carry compensation. principle of unjust enrichment Requisites: 97 . and not unduly oppressive upon individuals. State of necessity – law permits injury or destruction of things owned by another provided this is necessary to avert a greater danger449 445 For the benefit of the state 446 Requisites: 1 . Those imposed by law 1. in unjustified.447 2. The means employed are reasonably necessary for the accomplishment of a purpose. not complied with. restore the owner in his possession. safety or and objects within its upon payment of just security. to impose competent authority and competent authority in the burdens upon the subjects from public use and always interest of health. 2. requires such interference. the owner thereof jurisdiction. for the purpose compensation. the condemnation or seizure is courts shall protect and. Nuisance448 3.446 proper cases. General limitations445 Taxation Eminent domain Police power The inherent power of the No person shall be deprived When any property is sovereign. unless he can out the legitimate objects of Should this requirement be show that such the government. It does not apply where the owner of a thing makes use of it in a lawful manner for then it cannot be said that the manner of the use is such “as to injure the rights of a third person”. 2. exercised through of his property except by condemned or seized by the legislature. as distinguished from those of a particular class. 447 sic utere tuo This is based on the police power of the State.the owner of a thing cannot make use thereof in such a manner as to injure the rights of a 3rd person. Limitations 1. sic utere tuo ut non laedas . Specific Limitations a. 448 infra 449 with right to indemnity – vs.The interest of the public in general.

building or other property on which it is found. 2. mortgages imposed by contract IV. either naturally or artificially. The law does not require that the person acting in a state of necessity be free from negligence in the creation of the threatened danger 450 The right by virtue of which the owner of a thing becomes the owner of everything that it may produce or which may be inseparably united or incorporated thereto. his act would be illicit. 2. If through an error. or of the state or any of its political subdivisions. The finder is not a co-owner of the property where it is found. jewelry or other precious objects. 6. 3. Right to hidden treasure451 General rule: It belongs to the owner of the land. Danger to life is always greater than damage to property.452 1. The finder is not a trespasser. b. his share belongs to the community 98 . one believed himself to be in a state of necessity.any hidden or unknown deposit of money. The finder is not married under the absolute community or the conjugal partnership system. and the owner of the property can use the principle of self-help. The finder is not an agent of the landowner. the lawful ownership of which does not appear. The interference is necessary. 5. Easements voluntarily imposed by owner 1. 452 Otherwise. Accession450 A. The seriousness or gravity of the danger must be much greater than the damage to the property affected or destroyed by the protective act. Discovery was made on the property of another. Servitudes 2. Exceptions: The finder is entitled to ½ provided: 1. 451 Hidden treasure . or used excessive means. The finding was made by chance. 4. The damage to another is much greater than the damage to the property.

industrial and civil fruits 454 artificial/industrial and natural 455 spontaneous products of the soil and the young and other products of animals 456 those produced by lands of any kind through cultivation or labor 457 rents of buildings.457 General rule – Exceptions: Whatever is built. planted or sown on If the thing is: the land of another and the improvements or repairs made thereon belong to the a) in possession of a possessor in owner of the land. or d) in possession of an antichretic Alluvion or alluvium– increment which lands creditor abutting rivers gradually receive as a result of the current of the waters. B. planting or sowing industrial.456 and civil fruits.458 good faith. price of leases or lands and the amount of perpetual or life annuities or other similar income 458 The owner of the land must be known. It is the gradual deposit of sediment by the natural action of 453 Natural.455 Building. built or sown until a hearing shall have been accorded to whosoever is entitled thereto. Accession discreta453 and continua454 Accession discreta Accession continua The right pertaining to the owner of a thing The right pertaining to the owner of a thing over everything produced thereby over everything that is incorporated or attached thereto either naturally or artificially. General rule: Artificial/industrial To the owner belongs the natural. General Rules: 1. For immovables: a. otherwise no decision can be rendered on the ownership of the thing planted. 99 . Natural c) leased or pledged. by external forces. Exception: contrary is proven b) subject to a usufruct.

460 Rule Estates adjoining ponds or lagoons The owners of estates adjoining ponds or lagoons do not acquire the land left dry by the natural decrease of the waters. creek or torrent segregates from an estate on its bank a known portion and transfers it to another estate. If a known portion of land with trees standing thereon is carried away by the current to another land. they shall pay the expenses incurred in gathering or putting them in a safe place. or loss that inundated by them in extraordinary floods Trees uprooted/by force of river Trees uprooted and carried away by the current of the waters belong to the owner of the land upon which they may be case. If such owners claim them. the rule on avulsion governs. 460 The owner of the estate to which the segregated portion belongs preserves his ownership of the segregated portion provided he removes (not merely claims) the same within the period of 2 years. retains the ownership thereof.459 Avulsion .the accretion which takes place when the current of the river. in which case. the owner of the estate to which the segregated portion belonged. 100 .461 Abandoned river bed/change in the course River beds which are abandoned through of river the natural change in the course of waters ipso facto belong to the owners whose lands 459 To the owners of the lands adjoining the banks of rivers belong the accretions which they gradually receive from the effects of the current of the waters. 461 This rule refers to uprooted trees only. a current of fresh water (not sea water. the original identity of the deposit being lost. if the owners do not claim them within 6 months. Failure to do so would have the effect of automatically transferring ownership over it to the owner of the other estate.

the owner of the land retains his ownership thereto. 463 The bed of a public river or stream is of public ownership. there is abandonment by the government of its right over the old bed. this bed becomes of public dominion even if it is on private property. 2. Therefore. Formation of Islands 1.463 Branching of course of river Whenever the current of a river divides itself into branches. this bed shall become of public dominion. River beds are part of public domain. or on navigable or floatable rivers:464 the island belongs to the State as part of its patrimonial property. If formed in non – navigable and non – floatable rivers: a. on lakes. leaving a piece of land or part thereof isolated. the owners of land adjoining the old bed are given preferential right to acquire the same by paying the value thereof to promote the interest of agriculture because the riparian owners of the old course/bed can better cultivate the same. The law does not make any distinction whether the river is navigable or not. if only one owner lost a portion of his land. The indemnification to be paid shall not exceed the value of the area occupied by the new bed. or owner of the margin or bank nearest to it as he is considered on the best position to 462 However. He also retains ownership to a portion of his land separated from the estate by the current. In this case. changing its course by natural causes.462 New river bed without abandonment Whenever a river. “In proportion to the area lost” implies that there are two or more owners whose lands are occupied by the new bed. If formed on the seas within the jurisdiction of the Philippines. It belongs to the nearest riparian owner. 101 . are occupied by the new course in proportion to the area lost. 464 One which in its natural state affords a channel for useful commerce and not such as is only sufficient to float a banca or a canoe. opens a new bed through a private estate. the entire old bed should belong to him. The owner of the invaded land automatically acquires ownership of the same without the necessity of any formal act on his part. If the river changes its course and opens a new bed.

commixtion/confusion. planting. ibid. 467 conjunction. the island is divided longitudinally in halves. avulsion. rivers. If a single island be more distant from one margin than from the other. cultivate and develop the island. sowing in good faith or bad faith. c. b. Accession continua467 Adjunction or conjunction Commixtion or confusion Specification It is the union of 2 When two or more things Whenever the work of a movable things belonging to belonging to different person is done on the different owners in such a owners are mixed or material of another. b. islands. adjunction. specification 102 . and way that they form a single combined with the such material. For movables: a. but each one of the respective identities of the consequence of the work component things preserves component parts destroyed itself. the owner of the nearer margin shall be the sole owner thereof. supra 466 accretion. the latter is deemed ipso jure to be the owner of that portion which corresponds to the length of that portion of his property along the margin of the river. undergoes a its value. If the island formed is longer than the property of the riparian owner. Accession natural466 2. or lost. If the island is in the middle of the river. as a object. transformation 465 building. Accession industrial465 c.

payment of the price. there is no conflict of rights. Adjunction in bad faith: and the mixture can easily be Exception: divided between the 2 If the union took place in owners. Worker in bad faith but value as appraised by a. or ii. Worker and owner of the the owners or by chance: materials in good faith: If the union took place without bad faith. If the things mixed are than the work/transformed of different kind and quality. a. and the mixture can easily be work to himself without or the payment of the price. Mixture by will of both 1. be governed by their good faith: stipulations. To demand the experts. c. and the value of his material as must pay for the value of the in co-ownership. each owner acquires a right or interest in a. If the things mixed are has the option either: thing equal in kind and value of the same kind and quality. divided between the 2 paying the maker. If the material is more bad faith. 2. If the things mixed are value of the material plus of different kind and quality. Mixture caused by an b. work/transformed thing but the obligation to indemnify he must indemnify the the owner of the accessory b. He shall be liable for damages to the owner of the 2. Their rights shall first The worker becomes the of the principal thing be governed by their owner of the acquires the accessory. work or labor. or the owner in good faith or by indemnity for the material. the owner of the a. the following rules precious or of more value shall apply: c. b. Their rights shall first the owner of the material in experts. Bad faith on the part in the absence of a material may choose: of owner of accessory: stipulation. of the same kind and quality. To demand principal thing. thing. To appropriate the that of the principal thing. the owner a. damages. To appropriate the i. iii. The principal may The owner of the material demand for the delivery of a b.Rules: Rules: Rules: 1. OR including its sentimental owners. Adjunction in good faith: 1. with stipulations. value as appraised by b. and in all other respects to there is no conflict of rights. value. He shall lose the the mixture in proportion to new thing to himself but thing incorporated. Bad faith on the part in the absence of a 103 . chance: including its sentimental 2. If the things mixed are owner of the material for its for its value.

only forfeits the thing materials and shall have the belonging to him but also obligation to indemnify the ii. To have the becomes liable to pay worker for the damages he accessory thing separated indemnity for the damages may have suffered even if it be necessary to caused to the other owner. c. 4. and in all other respects to knowledge and without the that of the accessory thing. Owner of the materials in principal: acquires a right or interest in bad faith but the worker is the mixture in proportion to in good faith: The owner of the the value of his material as accessory thing is given the in co-ownership. their including its sentimental respective rights shall be value as appraised by determined as though both experts. The owner of the option either: material is in bad faith when 3. To require the owner owner in bad faith: employment of his materials. acted in good faith. Sentimental value shall be duly appreciated 104 . Mixture by both owners faith: in bad faith: iii. Accordingly. plus damages.of the owner of the stipulation. Mixture caused by an he does not object to the i. Both parties in bad faith: Their respective rights are to be determined as though both acted in good faith. owner. each owner 3. destroy the principal thing. of the principal thing to pay the value of the accessory The owner in bad faith not Accordingly. 4. The accessory may Their rights shall be demand for the delivery of a There is bad faith when the determined as though both thing equal in kind and value mixture is made with the acted in good faith. objection of the other or the payment of the price. he shall lose his thing. Both owners are in bad plus damages.

469 b. engraving and lithographs. paper or parchment shall be deemed the accessory thing. 469 Rule of importance and purpose 105 . Of greater volume. utility and volume of their respective things. canvas. Of greater merits taking into consideration all the pertinent legal provisions applicable as well as the comparative merits. Of greater value. printed matter. the board. b. the principal is that: accession in mixture since there is neither a principal a. Adjunction Mixture Specification Involves at least 2 things Involves at least 2 things May involve one thing (or more) but form is changed Accessory follows the Co-ownership results Accessory follows the principal principal Things joined retain their Things mixed or confused The new object retains or nature may either retain or lose preserves the nature of the their respective natures original object. writings. metal stone. if they are of an equal value. 468 In paintings and sculpture. c. To which the accessory nor an accessory has been united as an ornament or for its use or perfection. Rules for determining the principal and accessory468 Adjunction Mixture Specification In the order of application. d. Strictly speaking. there is no Labor is the principal. if they are of unequal values.

Plaintiff must have a legal or equitable title to. to put an end to vexatious litigation in delivery of. Requirements: 1.an equitable action in rem to determine the condition of the ownership or the rights to immovable property. in fact. respect to the property involved encumbrance.470 A. Distinction between quieting of title and removing/preventing a cloud471 Quieting of Title Removing/Preventing a Cloud Strictly considered. and which may be used to injure or vex him in the enjoyment of his title. 3. and 4. or reimburse him for expenses that may have redounded to his benefit. There must be a cloud in such title. record. appearing in some legal form which is. 470 The action to quiet title does not apply: a) to questions involving interpretation of documents b) to mere written or oral assertions of claims. Plaintiff must return to the defendant all benefits he may have received from the latter. Such cloud must be due to some instrument. B. and remove doubts thereon. except: i) if made in a legal proceeding ii) if it is being asserted that the instrument or entry in plaintiff’s favor is not what it purports to be c) to boundary disputes d) to deeds by strangers to the title UNLESS purporting to convey the property of the plaintiff e) to instruments invalid on their face f) where the validity of the instrument involves pure questions of law 471 What is a cloud on title? It is a semblance of title. claim. is substantially an action Intended to procure the cancellation. Quieting of Title to or Interest in and Removal or Prevention of Cloud over Title to or Interest in Real Property Quieting of Title . and is prejudicial to the plaintiff’s title. or a claim or a right in real property. invalid or which would be inequitable to enforce 106 . either legal or equitable. ineffective.V. or interest in the real property which is the subject matter of the action. voidable or unenforceable. release of an instrument. 2. encumbrance or proceeding which is apparently valid but is in truth invalid. or claim constituting a claim on plaintiff’s title.

Plurality of subjects. Prescription/non-prescription of action Plaintiff in possession Plaintiff not in possession Imprescriptible 10 years472 or 30 years473 VI. 472 ordinary 473 extraordinary 107 . Co-ownership exists where the ownership of a thing physically undivided pertains to more than one person. Co-ownership The right of common dominion which two or more persons have in a spiritual part of a thing which is not physically divided. In general a. and and avers that the claim is without prays that it be declared void. Characteristics of co-ownership 1.The plaintiff asserts his own estate and Plaintiff not only declares his own title. Relief is granted if the threatened or anticipated cloud is one which if it existed. but declares generally that the defendant claims also avers the source and nature of some estate in the land. C. Unity of object or material indivision. foundation. b. without defining it. points out its defect. would be removed by suit to quiet title. c. A. defendant’s claim. Recognition of ideal or intellectual shares of co-owners which determine their rights and obligations.

Any transfer or conveyance of a unit or an apartment. When the project has not been rebuilt or repaired substantially to its state prior to its damage or destruction 3 years after damage or destruction which rendered a material part thereof unfit for use. Concept of condominium (1) Condominium corporation An interest in real property consisting of a separate interest in a unit in a residential. except in cases of hereditary succession. that it is obsolete and uneconomic. and the condominium owners holding in aggregate more than 50% interest in the common areas are opposed to restoration. and there shall be no judicial partition thereof: Exceptions: 1. (2) Interest in real property474 (3) Concept of common areas. remodeling or modernizing. amendment General rule: Common areas shall remain undivided. however. 3. no condominium unit therein shall be conveyed or transferred to persons other than Filipino citizens or corporations at least 60% of the capital stock of which belong to Filipino citizens. shall include transfer or conveyance of the undivided interest in the common areas or. 474 See Condominium Corporation. 2. office or store or other space therein. that where the common areas in the condominium project are held by the owners of separate units as co-owners thereof. When damage or destruction has rendered ½ or more of the units untenantable and that the condominium owners holding more than 30% interest in the common areas are opposed to restoration of the projects. When the project has been in existence for more than 50 years. supra 108 . Special rules: a. in the land on which it is located and in other common areas of the building. in a proper case. the membership or shareholdings in the condominium corporation: provided. 2. directly or indirectly. industrial or commercial building and an undivided interest in common.

(b) Description of the building or buildings. (g) The following plans shall be appended to the deed as integral parts thereof: (1) A survey plan of the land included in the project. 5. (e) Statement of the purposes for which the building or buildings and each of the units are intended or restricted as to use. When conditions for partition by sale set forth in the declaration of restrictions duly registered have been met. When the project or a material part thereof has been condemned or expropriated and the project is no longer viable. (4) Documents to consider Master deed An enabling or master deed shall contain. (c) Description of the common areas and facilities. a statement to this effect shall be included. the following: (a) Description of the land on which the building or buildings and improvements are or are to be located. its relative location and approximate dimensions. the number of units and their accessories. (f) A certificate of the registered owner of the property. if he is other than those executing the master deed. as well as of all registered holders of any lien or encumbrance on the property. (d) A statement of the exact nature of the interest acquired or to be acquired by the purchaser in the separate units and in the common areas of the condominium project. that they consent to the registration of the deed. 109 . Where title to or the appurtenant interests in the common areas is or is to be held by a condominium corporation. among others. in sufficient detail to identify each unit. unless a survey plan of the same property had previously been filed in said office. 4. if any. or that the condominium owners holding in aggregate more than 70% interest in the common areas are opposed to the continuation of the condominium regime. stating the number of stories and basements. (2) A diagrammatic floor plan of the building or buildings in the project.

475 Declaration of restrictions The owner of a project shall. the by-laws of a condominium corporation shall provide that a stockholder or member shall not be entitled to demand payment of his shares or interest in those cases where such right is granted under the Corporation Law unless he consents to sell his separate interest in the project to the corporation or to any purchaser of the corporation's choice who shall also buy from the corporation the dissenting member or stockholder's interest. 477 Sec. 4726 476 Sec. morals or public policy regarding the right of any condominium owner to alienate or dispose of his condominium. R. In case of disagreement as to price. the procedure set forth in the appropriate provision of the Corporation Law for valuation of shares shall be followed. may be enforced by any condominium owner in the project or by the management body of such project. and other rules governing such body or bodies. 9. and shall insure to and bind all condominium owners in the project. if the land is patented or registered under the Land Registration or Cadastral Acts. All expenses incurred in the liquidation of the interest of the dissenting member or stockholder shall be borne by him. Such liens. The corporation shall have two years within which to pay for the shares or furnish a purchaser of its choice from the time of award. or a management agent elected by the owners or by the board named in the declaration. a board of governors elected by condominium owners. which restrictions shall constitute a lien upon each condominium in the project. 17 110 . The Register of Deeds shall enter and annotate the declaration of restrictions upon the certificate of title covering the land included within the project. register a declaration of restrictions relating to such project.477 475 Sec. an association of the condominium owners. unless otherwise provided. meeting date. The declaration of restrictions shall provide for the management of the project by anyone of the following management bodies: a condominium corporation. prior to the conveyance of any condominium therein. 4. It shall also provide for voting majorities quorums. notices.476 Articles and by-laws Any provision of the Corporation Law to the contrary notwithstanding. (h) Any reasonable restriction not contrary to law.A. The enabling or master deed may be amended or revoked upon registration of an instrument executed by the registered owner or owners of the property and consented to by all registered holders of any lien or encumbrance on the land or building or portion thereof.

957 Under R. 6552480 Under P. the buyer is entitled to the following rights in case he 1) Mortgage of Subdivision Lot or defaults in the payment of succeeding Condominium Unit installments: a) Requirements: (a) To pay. 957479 and R. buyer only once in every five years of the life of the contract and its extensions. the mortgage loan inures to the development of the condominium or (b) If the contract is canceled. 6552 A. the unpaid installments due within the total Owner or developer must: grace period earned by him which is hereby fixed at the rate of one month grace period i. 9 (d) 479 The Subdivision and Condominium Buyers' Protective Decree 480 Realty Installment Buyer Act 111 .A. after five years covered by the mortgage.D. cause the determination of property equivalent to fifty per cent of the the loan value of each lot or unit total payments made. Obligations and Rights of the Owner/ Where the buyer has paid at least two Developer (2) years of installments. the subdivision project seller shall refund to the buyer the cash surrender value of the payments on the iii. secure prior written for every one year of installment payments approval from the Authority made. The actual cancellation of the contract shall take place b) Buyer’s Option: To pay the after thirty days from receipt by the buyer mortgage loan of his lot or unit of the notice of cancellation or the demand for rescission of the contract by a notarial 478 Sec. show that the proceeds of any.478 (2) P. an additional five per cent every year but not to exceed ninety per cent iv. if ii.D. and of installments. each condominium unit to be assessed separately for its share of such expenses in proportion to its owners fractional interest in any common areas.A. This right shall be exercised by the (HLURB). Rights and obligations of condominium owner (1) Contributions/Dues For reasonable assessments to meet authorized expenditures. if any. b. and. without additional interest. of the total payments made. notify the buyer.

the seller shall give i. the seller may cancel the contract after thirty days from receipt by i. Down payments. 5 and 6. hereafter entered into contrary to the provisions of Sections 3. installments due at the expiration of the stated in the advertisement grace period.484 The buyer shall have the right to pay b) Sales Prior to in advance any installment or the full thisDecree: unpaid balance of the purchase price any time without interest and to have such full Within two (2) years from the payment of the purchase price annotated in effectivity of this Decree. i. deposits or options on the 2) Advertisement of the Subdivision or contract shall be included in the Condominium computation of the total number of installment payments made. 4. shall be ii. by the Authority (HLURB). etc. except: the certificate of title covering the property. or other period fixed shall be done by notarial act. 19 483 ibid 484 Sec. to acquire title thereof from the act and upon full payment of the cash mortgage. The buyer shall have the right to sell a) Sales On the Effectivity his rights or assign the same to another of this Decree: person or to reinstate the contract by updating the account during the grace Within one (1) year from the period and before actual cancellation of the issuance of the license of subdivision or contract.481 surrender value to the buyer. in a manner that does not became due. and the buyer a grace period of not less than sixty days from the date the installment ii. The deed of sale or assignment condominium project. mislead or deceive the public. 18 482 Sec. Time of Completion: by a notarial act. a) Contents: The owner must advertise only: In case where less than two (2) years of installments were paid. 481 Sec. if adequate null and void. Nature: Constitutes sales the buyer of the notice of cancellation or warranties483 the demand for rescission of the contract ii.482 If the buyer fails to pay the b) Improvements. 20 112 . facilities. if extended by the Any stipulation in any contract Authority (HLURB). real facts.

by the majority of the lot buyers in the subdivision. 6552 which took effect on August 26. 24 113 . 6 of this Decree is filed.486 4) Non-Forfeiture of Payments by the Owner or Developer a) If the failure of the subdivision or condominium buyer to pay installment is caused by the failure of the owner or developer to develop the subdivision or condominium according to the approved plan and within time limit. performance bond in accordance with Sec. 1976.485 3) Alteration of the Approved Subdivision Plan and/or of Representations in Advertisement: Requirements: The owner or developer must: a) secure approval of the Authority (HLURB). Republic Act No. but prior to such date. or in its absence. 21 486 Sec. 22 487 Sec. the buyer is entitled to refund based on installments paid after the effectivity of the law in the absence of contrary stipulation. b) If such failure is due to other causes. 23 488 Sec. but excluding 487 delinquency interest. 488 485 Sec. the buyer shall be reimbursed with legal interest and amortization interest. and b) written conformity or consent of the duly organized homeowners association.

b) Other Charges: 1) It cannot be collected by 489 Sec. 5) Issuance of Title to the Buyer by the Owner or Developer a) Time: Upon the full payment of the lot or unit. c) If the lot or unit is mortgaged. 2) Buyer who actually occupied and possessed a lot or unit is liable for taxes to the owner or developer from the year following such occupation or 489 possession. the owner or developer should redeem the lot or unit within six months from the issuance of the title. b) Chargeable Fee: The owner or developer can only charge from the buyer fee for the registration of the Deed of Sale to the Register of Deeds. 6) Payment of Realty Tax and Other Charges on the Subdivision or Condominium: Rules on: a) Real Taxes: 1) Paid by owner or developer unless title is passed to the buyer. 26 114 .

491 8) Right of Way to Public Road It should be secured by the owner and developer of a subdivision without access to any public road or street. b) Members: buyers and residents of the project c) Purpose: for the promotion and protection of mutual interest of 490 Sec. 28 492 Sec. the owner or developer. 2) It can be collected only by a properly organized homeowners association with the consent of majority of lot or unit buyers actually residing in the subdivision or 490 condominium project.492 9) Organization of Homeowner Association a) Formation: Initiated by the owner or developer. 7) Access to Public Offices in the Subdivisions: No owner or developer shall deny any person free access to any government office or public establishment located within the subdivision or which may be reached only by passing through the subdivision. 29 115 . Such way must be developed and maintained in accordance with the requirement set forth by the government. 27 491 Sec.

No. or that the owners holding in aggregate more than 70% 493 Sec. amending Sec. and for the community development493 10) Mandatory Donations of Roads and Open Spaces to Local Government494 c. the buyers and residents. 30 494 P. 1216. 116 . destruction to the projects which renders material part thereof unfit for its use prior thereto. and that owners holding in aggregate more than 30% interest in common areas are opposed to repair or restoration of the projects. b) Damage or destruction to the project has rendered one-half or more of its units thereof untenantable and the owners holding in aggregate more than 30% interest in common areas are opposed to repair or restoration of the project. that it is obsolete and uneconomic. c) The project has been in existence in excess of 50 years. D. or dissolution of the condominium Voluntary Dissolution495 Involuntary Dissolution Grounds: Grounds: a) Three (3) years after damage or Those provided for by law on corporations. the project has not been rebuilt or repaired substantially to its state prior to its damage or destruction. Grounds for partition of common areas. 31 of this Decree 495 Action for dissolution under Rule 104 of the Rules of Court. d) The project or material part thereof has been condemned or expropriated and that the project is no longer viable.

Fortuitous event or chance499 5. Succession498 4. use according to the purpose for which it was intended ii. 117 . 8.502 b) Right to substitute another person its enjoyment. 498 as when a person dies intestate. The Law497 2. Rights of co-owners 1.interest in common areas are opposed to the continuation of the condominium regime. except when personal rights are c) To the benefits of prescription: involved c) Right to alienate. 500 as when 2 persons catch a wild beast or gather forest products. 501 Limitations: i. fences and in the legal conjugal partnership. P.496 B. who become co- owners of the inheritance. 499 as in cases of commixtion and confusion caused by accident or chance. Contracts 3. and of hidden treasure accidentally discovered by a stranger on the land of another. dispose or encumber 496 Sec. Occupancy500 C. Sources of co-ownership 1. e) Conditions for partition under the declaration of restrictions have been met. interest of the co-ownership must not be prejudiced iii.D. Distinction between right to property owned in common and full ownership over his/her ideal share Right to property owned in common Right as to the ideal share of each co-owner: a) Each has full ownership of his part and a) To use the thing owned in common501 of his share of the fruits and benefits b) To share in the benefits and charges in proportion to the interest of each. leaving his properties undivided to several heirs. other co-owners must not be prevented from using it according to their own rights 502 Any stipulation to the contrary is void. 4726 497 as in party walls.

or withdraws it from the use to which they desire it to be intended.503 e) Alterations: to oppose alterations made e) Transactions entered into by each co- without the consent of all.504 f) To protest against seriously prejudicial decisions of the majority g) Legal redemption: to be exercised within 30 days from written notice of sale of an undivided share of another co-owner to a stranger h) To defend the co-ownership’s interest in court i) To demand partition at any time 2. 504 Alteration is an act by virtue of which a co-owner changes the thing from the state in which the others believe it should remain. The value of the property at the time of the renunciation will be the basis of the portion to be renounced.prescription by one co-owner benefits all. even if beneficial. Right to partition506 General rule: Partition is demandable by any of the co-owners as a matter of right at any time. or withdraws it from the use to which they desire it to be intended. Expenses to improve or embellish are decided by the majority 505 Alteration is an act by virtue of which a co-owner changes the thing from the state in which the others believe it should remain. 503 The co-owner being compelled may exempt himself from the payment of taxes and expenses by renouncing his share equivalent to such taxes and expenses. Expenses to improve or embellish are decided by the majority 506 The division between 2 or more persons of real or personal property which they own in common so that each may enjoy and possess his sole estate to the exclusion of and without interference from others 118 . beneficial. even if owner only affect his ideal share. 3. Right to oppose acts of alteration505 To oppose alterations made without the consent of all. d) Right to renounce part of his interest to d) Repairs and taxes: to compel the others reimburse necessary expenses incurred by to share in the expenses of preservation another co-owner even if incurred without prior notice.

119 . a co-owner may not be compelled to renounce. 507 Necessary expenses Expenses of preservation include all those which. waiver is not allowed if it is prejudicial to the co–ownership. would endanger the existence of the thing or reduce its value or productivity. Renunciation refers to existing debts and not to future expenses. but not to exceed 20 years. should consent thereto. When partition is prohibited by law f. When another co-owner has possessed the property as exclusive owner for a period sufficient to acquire it by prescription. 4. g. However. e. Expressly made – a tacit renunciation cannot produce any effect. e. c. b. Waiver508 Any one of the co-owners may exempt himself from this obligation by renouncing so much of his undivided interest as may be equivalent to his share of the expenses and taxes. is paid. The renunciation is in reality a case of dacion en pago. 5. Right to contributions for expenses Each co-owner shall have a right to compel the other co-owners to contribute to the expenses of preservation507 of the thing or right owned in common and to the taxes in proportion to their interest therein. who must should the debt of the renouncer in exchange for the portion being renounced. There is no other remedy available against the co-owner who refuses to pay his share in the expenses of preservation except an action to compel him to contribute such share. not in money. d. They do not imply an improvement or increase. The co-owner in default cannot be compelled to renounce his share therein. Renunciation is a free act. Renunciation is a voluntary and free act. the debt of the co-owner consisting of his share in the expenses of preservation and taxes. 508 No such waiver shall be made if it is prejudicial to the co-ownership Rules on renunciation: a. Failure to contribute does not amount to a renunciation of any portion of share in the co-ownership. but in an interest in property. if not made. Exceptions: a. d. c. it is only logical that the other co-owners. When partition would render the thing unserviceable. When there is a stipulation against it. but not to exceed 10 years. f. When the condition of indivision is imposed by the donor or testator. When the legal nature of the community prevents partition. b. Since the renunciation refers to a portion equivalent in value to the share of the renouncing co- owner in an existing debt. Total or partial.

reimbursements. Heir is exclusive owner of property adjudicated to him. 500 511 under Art.511 Each former co-owner is deemed to have had exclusive possession of the part allotted to him for the entire period during which the co-possession lasted. so that co-ownership. there should be mutual accounting of benefits. liability for defects of title and quality of portion assigned to each. payment of damages due to negligence or fraud. After partition. division and assignment of the thing held in common among those to whom it may belong. Termination/extinguishment509 The separation. no longer exists. 509 No co-owner shall be obliged to remain in the co-ownership. Right to redemption of co-owners share Legal redemption: to be exercised within 30 days from written notice of sale of an undivided share of another co-owner to a stranger D. Obligation of warranty is proportionate to respective hereditary shares.ownership commenced. 1. the portion belonging to each co-owner has been identified and localized. 1093 120 . Partition confers upon each the exclusive title over his respective share. the thing itself may be divided. Effects of partition Partition shall not prejudice third persons who do not intervene in the partition After partition. Each co-owner may demand at any time the partition of the thing owned in common. Co-owners reciprocally bound to each other for warranty of title and quality of part given to each (hidden defect) after partition. 510 See Art.510 Part allotted to a co-owner at partition will be deemed to be possessed by such co- owner from the time the co. or its value. 6. in its real sense. insolvency of one makes the others liable subject to reimbursement (joint liability).

531 121 . Partition in case co-owners cannot agree The thing shall be sold and its proceeds distributed to the co-owners. 1. 514 Art. Characteristics Characterized by two (2) relations: 1. How acquired By the material occupation of a thing or the exercise of a right. vs..R. Possession The holding of a thing or enjoyment of a right. 56550. B. Oct. 1990 The sale may be public or private. or by the proper acts and legal formalities established for acquiring such right. Rights against individual co-owners in case of partition512 3.513 VII. 498 The sale of the property held in common is resorted to when (1) the right to partition the property among the co-owners is invoked by any of them but because of the nature of the property. No. et al. Hon. Alfredo Concepcion. A. G. or by the fact that it is subject to the action of our will. et al.514 512 See Effects of partition. supra 513 Art. The possessor’s relation to the world. The possessor’s relation to the property itself. and 2. and the purchaser may be a co-owner or a third person. 2. it cannot be subdivided or its subdivision [See Article 495 of the New Civil Code] would prejudice the interests of the co-owners (See Section 5 of Rule 69 of the Revised Rules of Court) and (2) the co-owners are not in agreement as to who among them shall be allotted or assigned the entire property upon reimbursement of the shares of the other co-owners (Marina Reyes.

Effects of Possession 1. The owner of the thing may. shall lose the right to be indemnified in any other manner. Mistake upon a doubtful or difficult question of law may be the basis of good 516 faith. the possessor shall have a right to a part of the expenses of cultivation.517 a. Good faith is always presumed. Natural and industrial fruits are considered received from the time they are gathered or severed. both in proportion to the time of the possession. as an indemnity for his part of the expenses of cultivation and the net proceeds. and upon him who alleges bad faith on the part of a possessor rests the burden of proof. Possessor in Good Faith He is entitled to the fruits received before the possession is legally interrupted.518 515 Art.515 He is deemed a possessor in good faith who is not aware that there exists in his title or mode of acquisition any flaw which invalidates it. should he so desire. The charges shall be divided on the same basis by the two possessors. C. 526 517 Art. Civil fruits are deemed to accrue daily and belong to the possessor in good faith in that proportion. give the possessor in good faith the right to finish the cultivation and gathering of the growing fruits. 545 122 . Right to pending fruits If at the time the good faith ceases. the possessor in good faith who for any reason whatever should refuse to accept this concession. there should be any natural or industrial fruits. and to a part of the net harvest. 527 518 Art. 544 516 Art.

and if his successor in the possession does not prefer to refund the amount expended. 546 520 Art. Useful expenses shall be refunded only to the possessor in good faith with the same right of retention. planted or sown without right to indemnity. Possessor in Bad Faith He who builds.519 If the useful improvements can be removed without damage to the principal thing. 549 123 . Right to be reimbursed (1) Necessary and useful expenses Necessary expenses shall be refunded to every possessor. b. but only the possessor in good faith may retain the thing until he has been reimbursed therefor.521 The possessor in bad faith shall reimburse the fruits received and those which the legitimate possessor could have received. but he may remove the objects for which such expenses have been incurred.520 2.523 The expenses incurred in improvements for pure luxury or mere pleasure shall not be refunded to the possessor in bad faith. the possessor in good faith may remove them. 449 522 supra 523 See Reference 524 Art. but he may remove the ornaments with which he has embellished the principal thing if it suffers no injury thereby. (2) Expenses for pure luxury Not to be refunded to the possessor in good faith. unless the person who recovers the possession exercises the option under paragraph 2 of the preceding article. plants or sows in bad faith on the land of another.524 519 Art. the person who has defeated him in the possession having the option of refunding the amount of the expenses or of paying the increase in value which the thing may have acquired by reason thereof. provided that the thing suffers no injury thereby. loses what is built. and shall have a right only to the expenses mentioned in paragraph 1 of Article 546522 and in Article 443. and that the lawful possessor does not prefer to retain them by paying the value they may have at the time he enters into possession. 548 521 Art.

Where goods are sold by a person who is not the owner thereof. in accordance with the Code of Commerce and special laws527 1. the owner cannot obtain its return without reimbursing the price paid therefor. the buyer acquires no better title to the goods than the seller had.525 A possessor in bad faith shall be liable for deterioration or loss in every case. even if caused by a fortuitous event. Loss or Unlawful Deprivation of a Movable The possession of movable property acquired in good faith is equivalent to a title. or in fairs. Nevertheless.526 If the possessor of a movable lost or which the owner has been unlawfully deprived. as well as with respect to movables acquired in a public sale. D.528 Eight (8) years – if in bad faith. The provisions of Articles 559 and 1505529 shall be observed with regard to the right of the owner to recover personal property lost or of which he has been illegally deprived. unless the owner of the goods is by his conduct precluded from denying the seller's authority to sell. except in cases in which it is proved that he has acted with fraudulent intent or negligence. and who does not sell them under authority or with the consent of the owner. one who has lost any movable or has been unlawfully deprived thereof. fair. shall affect: xxx (3) Purchases made in a merchant's store. or from a merchant's store. or market. or markets. Nothing. after the judicial summons. 1134) 529 supra 530 Art. may recover it from the person in possession of the same. 1505 (3) 528 Ten (10) years in case of immovables (Art. Period to Recover Four (4) years – if in good faith. 1132 124 .530 525 Art. 552 526 Art. 559 527 Art. however. has acquired it in good faith at a public sale. A possessor in good faith shall not be liable for the deterioration or loss of the thing possessed.

Art. The finder and the owner shall be obliged.533 2. and without notice of the seller's defect of title. or its value. must return it to its previous possessor.531 Actions to recover movables shall prescribe eight (8) years from the time the possession thereof is lost. or without expenses which considerably diminish its value. the finder shall immediately deposit it with the mayor of the city or municipality where the finding has taken place. If the latter is unknown. but his title has not been avoided at the time of the sale. and 1133. 1505. 1133 532 supra 533 Id.536 531 Art. it shall be sold at public auction eight days after the publication.532 and without prejudice to the provisions of Articles 559. 719 535 Art. provided he buys them in good faith. 720 536 Art.535 3. Six months from the publication having elapsed without the owner having appeared. unless the possessor has acquired the ownership by prescription for a less period. Distinguished from voidable title Where the seller of goods has a voidable title thereto.534 If the owner should appear in time. shall be awarded to the finder. he shall be obliged to pay. 1140 534 Art. to reimburse the expenses. the buyer acquires a good title to the goods. one-tenth of the sum or of the price of the thing found. as the case may be. Movables possessed through a crime can never be acquired through prescription by the offender. the thing found. 1506 125 . Finder of Lost Movable Whoever finds a movable. If the movable cannot be kept without deterioration. according to Articles 1132.. as a reward to the finder. which is not treasure. for value. The finding shall be publicly announced by the mayor for two consecutive weeks in the way he deems best.

Co-possessors deemed to have exclusively possessed part which may be allotted to him. Rights of the possessor 1. with respect to the right they respectively exercise over the thing. person. interruption in whole or in part shall be to the prejudice of all 6. civil – accrue daily 126 . Person in concept of owner has in his favor the legal presumption of just title539 4. holder. Possessor in good faith entitled to fruits received before possession is legally interrupted540 537 None of these holders assert a claim of ownership in himself over the thing but they may be considered as possessors in the concept of owner. if disturbed – protected by means established by law. Possession of real property presumes that movables are included 5. public. Right to be respected in his possession. Possession has to be in concept of owner. in name of another537 In the concept of In the concept of In one’s own name In the name of owner holder another Possessor of the Possessor holds it Possessor claims the For whom the thing thing or right. by his merely to keep or thing for himself is held by the actions. In concept of owner. peaceful and uninterrupted b. E. the possessor considered or is ownership believed by other pertaining to another people as the owner. F. possessor regardless of the acknowledges in good or bad faith of another a superior the possessor right which he believes to be ownership. in one’s own name. Possession acquired and enjoyed in concept of owner538 can serve as title for acquisitive prescription 3. Title short of ownership 539 prima facie 540 natural and industrial – gathered or severed. spoliation 2. 538 a. or under claim of ownership. is enjoy it.

541 owner has option to require possessor to finish cultivation and gathering of fruits and give net proceeds as indemnity for his part of expenses. domesticated – possessed if they retain habit of returning back home 14. 11. Possessor in good faith and bad faith may not be entitled to payment for luxurious expense but may remove them provided principal is not injured – provided owner does not refund the amount expended 12.unless owner exercises option of paying. Possessor in good faith may remove improvements if can be done w/o damage to principal thing. owner has option of paying expenses or paying the increase in value of property which thing acquired by reason of useful expenses 10. Improvements caused by nature or time to inure to the benefit of person who has succeeded in recovering possession 13. Possessor in good faith entitled to part of net harvest and part of expenses of cultivation if there are natural or industrial fruits. Possessor has right to be indemnified for necessary expenses whether in good faith or in bad faith. 7. according to law. Wild animals possessed while in one’s control. if possessor in good faith refuses – barred from indemnification in other manner 8. Possessor in good faith has right of retention over thing unless necessary expenses paid by owner 9. possessor in bad faith not entitled. Possessor in good faith has right to be reimbursed for useful expenses with right of retention. One who recovers. possession unjustly lost is deemed to have enjoyed it w/o interruption 541 proportionate to time of possession 127 .

or cannot be recovered 545 see Reference 546 This refers to possession de facto and not de jure 547 Art. Loss/termination A possessor may lose his possession: (1) By the abandonment of the thing. Usufruct A. -the effect is that he who was the owner or possessor is no longer so 544 A thing is lost when it perishes. if the new possession has lasted longer than one year546. Characteristics 1. or goes out of commerce.547 (5) by recovery by lawful owner or possessor548 VIII. (4) By the possession of another. ownership of which may be acquired by occupation can hardly apply to land. or disappears in such a way that its existence is unknown. subject to the provisions of article 537545. A real right. 4. as to which said mode of acquisition is not available 543 The complete transmission of the thing or right to another by any lawful manner.542 (2) By an assignment543 made to another either by onerous or gratuitous title. Of temporary duration. 2. May be constituted on real or personal property. tangible or intangible. 555 548 Recovered in an reivindicatory action or in an action to recover the better right of possession 128 . consummable or non – consummable. (3) By the destruction or total loss of the thing544. Transmissible. G. But the real right of possession is not lost till after the lapse of ten years. By voluntary abandonment. the ownership of which is vested on another 542 The voluntary renunciation of all rights which a person has over a thing thereby allowing a third person to acquire ownership or possession thereof by means of occupancy. Abandonment which converts the thing into res nullius. thing becomes without an owner or possessor and is converted into res nullius and may thus be acquired by a third person by occupation. 3. or because it goes out of commerce.

legal.of rights 6. Quality or kind of object: . . Extent of owner’s patrimony . Quantity or extent of object . . .pure.particular 129 .multiple which may either be : .normal. B.successive 4. Origin .simple. Number of usufructuaries: .universal. . . . .abnormal 2.partial 7.simultaneous.mixed 3. Terms or conditions: .with a term or period. . allowed .voluntary. Classification 1.conditional 5. .of things. Whether or not impairment of object is .total.

To fruits growing at time usufruct begins. except when at duration of usufruct. Right not exempt from execution and can be sold at public auction by owner 5. 6. may still exercise make them at expense of usufructuary – act of ownership . cannot escape by renouncing usufruct belongs to owner 7. consumable a. Generally. Naked owner still have rights but w/o indispensable for preservation. thing deteriorates. Take care of property as a good father of family 4. usufructuary has no liability gratuitous or onerous. but can’t do acts of there is fraud or negligence. C. Obliged to make expenses due to his growing fruits at termination of usufruct fault. Notice of inventory of property551 b. 583-602 550 mutuum 551 appraisal of movables & description 552 1. intended for sale b. Pay legal interest from extraordinary 7. excused – allowed by owner. owner may prejudice to usufructuary. fruits proportionate obliged to return in that state. Before entering into usufructuary: a. Obliged to make ordinary repairs – wear & tear due to natural use of thing and are 5. Posting of security552 c. with term of usufruct. but is co-terminus when due to wear & tear. charges & taxes 8. whose who have right to fruits 2. then he shall be ownership such as alienation or conveyance liable except when property is: 3. To enjoy accessions & servitudes in its affecting fruits favor & all benefits inherent therein 549 Arts.bring action to preserve during existence of usufruct 6. Rights and obligations of usufructuary Rights Obligations549 1. To hidden treasure as stranger should reimburse expenses incurred 3. if not appraised & consumable – return same quality550 4. Payment of expenses. not required by law or no one will be injured 130 . natural & industrial fruits of 1. appraised when delivered. To civil. To transfer usufructuary rights – 2. To necessary expenses from cultivation at expenses made by owner end of usufruct 8. not applicable to parents who are usufructuary of children except when 2nd marriage contracted 2. Pay expenses to 3rd persons for property cultivation & production at beginning of usufruct.

To necessary expenses 14. Expenses. Payment of interest on amount paid by bearing trees & shrubs or those owner charges on capital uprooted/cut by accident but obliged to plant anew 10. To administer when property is co- owned. To make use of dead trunks of fruit 9. To leave dead. To oblige owner to give authority & furnish him proofs if usufruct is extended to recover real property or real right 13. Obliged to notify owner of act of 3rd person prejudicial to rights of ownership – 10. Usufructuary of woodland – ordinary he is liable if he does not do so for damages cutting as owner does habitually or custom – as if it was caused through his own fault of place. To introduce useful & luxurious expenses but with no obligation of reimbursement on part of owner. if co-ownership cease – usufruct of part allotted to co-owner belongs to usufructuary – not affected 17. cannot cut down trees unless it is for the restoration of improvement of 11. To demand the increase in value of property if owner did not spend for extraordinary repairs when urgent & necessary for preservation of thing 131 . uprooted trees at the disposal of owner with right to demand that owner should clear & remove them – if caused by calamity or extraordinary event – impossible to replace them 12.9. To set-off improvements against damages he made against the property 16. cost & liabilities in suits things in usufruct – must notify owner first brought with regard to usufructuary – borne by usufructuary 11. may remove improvement if can be done w/o damage 15.

Rights of the owner 1. 603) A usufruct is not extinguished by bad use of the thing in usufruct 554 Art. 553 such as emancipation of the child (Art. 2. 8. The immovable in favor of which the easement is established is called the dominant estate. Merger. Death of the usufructuary. Alienate thing 2. 6. Continuous easements are those the use of which is or may be incessant. Other causes553 IX. Make any improvement provided it does not diminish value or usufruct or prejudice right of usufructuary E. Renunciation. 7. 5. without the intervention of any act of man. 4. the servient estate. 3. Extinction/termination 1. D. Can’t alter form or substance 3.554 Easements may be continuous or discontinuous. Termination of right of owner. 613 132 . apparent or non-apparent. Can’t do anything prejudicial to usufructuary 4. that which is subject thereto. Construct any works 5. Expiration of period or fulfillment of condition. Loss of the thing. Prescription. Easements An easement or servitude is an encumbrance imposed upon an immovable for the benefit of another immovable belonging to a different owner.

never on one’s own property c) It involves two neighboring estates (in case of real easements) d) It is inseparable from the estate to which it is attached. Characteristics a) It is a real right but will affect third persons only when duly registered b) It is enjoyed over another immovable. 555 Art. without possession g) It cannot consist in the doing of an act unless the act is accessory in relation to a real easement h) It is a limitation on the servient owner’s rights of ownership for the benefit of the dominant owner. that which prohibits the owner of the servient estate from doing something which he could lawfully do if the easement did not exist.555 Easements are also positive or negative.556 A. and a negative easement. A positive easement is one which imposes upon the owner of the servient estate the obligation of allowing something to be done or of doing it himself. 615 556 Art. cannot be alienated independently of the estate e) It is indivisible for it is not affected by the division of the estate between two or more persons f) It is a right limited by the needs of the dominant owner or estate. Discontinuous easements are those which are used at intervals and depend upon the acts of man. and. Nonapparent easements are those which show no external indication of their existence. therefore. and. Apparent easements are those which are made known and are continually kept in view by external signs that reveal the use and enjoyment of the same. it is not presumed. therefore. 616 133 .

R. but consent once given is not revocable. Right of way The right granted to the owner of an estate which is surrounded by other estates belonging to other persons and without an adequate outlet to a public highway to demand that he be allowed a passageway throughout such neighboring estates after payment of proper indemnity. 688. who may be ignorant thereof. 54417. Legal easements They are easements imposed by law and which have for their object either public use or the interest of private persons. L-20786. Inc. and if so repealed. There must be a demand for extinction coupled with tender of indemnity by the servient owner. vs. Easement must be established at the point least prejudicial to the servient estate 6. a. Claimant must be an owner of enclosed immovable or one with real right 2. There must be no adequate outlet to a public highway 3.559 557 Requisites: 1. 1965 134 . all must consent. Right of way must be absolutely necessary 4. Quezon city. The owner possessing capacity to encumber property may constitute voluntary servitude. this prohibition would not be enforceable against new purchasers of the land. B. 558 Art. a. or joining the dominant tenement to another with exit on a public road. Classification 1. No. The extinction is NOT automatic. G.557 2. Effect of Zoning ordinance The existence of a zoning ordinance is immaterial. If there are various owners. Rafaela v. October 30. see Reference 559 see In re: Petition for cancellation of condition annotated on Transfer certificate of title no. Voluntary easements558 Constituted by the will of the parties or of a testator. Trias. Payment of proper indemnity Special cause of extinction: the opening of a public road.. Dra. Gregorio Araneta. The ordinance might be repealed at any time. Isolation must not be due to the claimant’s own act 5.

622 563 Art. in every case. the owner of a wall which is not party wall. from executing an act which would be lawful without the easement. C. should either of them be alienated. the owner of the servient estate.560 In order to acquire by prescription the easements referred to. shall be considered. 620 561 Art. adjoining a tenement or piece of land belonging to another. commenced to exercise it upon the servient estate. 621 562 Art. This provision shall also apply in case of the division of a thing owned in common by two or more persons. or the sign aforesaid should be removed before the execution of the deed. may be acquired only by virtue of a title.561 Continuous nonapparent easements. or the person who may have made use of the easement. established or maintained by the owner of both. 623 564 Art. Easement of light and view When the distances in Article 670565 are not observed. by an instrument acknowledged before a notary public. 624 565 See Reference 135 . the contrary should be provided in the title of conveyance of either of them.562 The absence of a document or proof showing the origin of an easement which cannot be acquired by prescription may be cured by a deed of recognition by the owner of the servient estate or by a final judgment.564 2. and. Modes of Acquiring Easements 1. from the day on which the owner of the dominant estate. from the day on which the owner of the dominant estate forbade.563 The existence of an apparent sign of easement between two estates. whether apparent or not. 560 Art. can make in it openings to admit light at the height of the ceiling joints or immediately under the ceiling. at the time the ownership of the two estates is divided. with an iron grating imbedded in the wall and with a wire screen. and discontinuous ones. as a title in order that the easement may continue actively and passively. the time of possession shall be computed thus: in positive easements. Compulsory easements Continuous and apparent easements are acquired either by virtue of a title or by prescription of ten years. and in negative easements. and of the size of thirty centimeters square. unless.

571 Any stipulation permitting distances less than those prescribed in article 670 is void.572 566 Art. Neither can side or oblique views upon or towards such conterminous property be had. Nevertheless. or other similar projections which afford a direct view upon or towards an adjoining land or tenement can be made.570 Whenever by any title a right has been acquired to have direct views. The nonobservance of these distances does not give rise to prescription. 671 569 supra 570 Art. 670 568 Art. 672 571 supra 572 Art. He can also obstruct them by constructing a building on his land or by raising a wall thereon contiguous to that having such openings. subject to special regulations and local ordinances. 669 567 Art. from the outer line of the latter when they do. the owner of the tenement or property adjoining the wall in which the openings are made can close them should he acquire part-ownership thereof. balconies or belvederes overlooking an adjoining property. if there be no stipulation to the contrary. unless an easement of light has been acquired.566 No windows. 673 136 .568 The provisions of Article 670569 are not applicable to buildings separated by a public way or alley. without leaving a distance of two meters between the wall in which they are made and such contiguous property. unless there be a distance of sixty centimeters. which is not less than three meters wide.567 The distance referred to shall be measured in cases of direct views from the outer line of the wall when the openings do not project. and in cases of oblique view from the dividing line between the two properties. the owner of the servient estate cannot build thereon at less than a distance of three meters to be measured in the manner provided in Article 671. balconies. apertures.

or anything else which: (1) Injures or endangers the health or safety of others. and cannot be said nuisance without being a public. inconvenience. or (5) Hinders or impairs the use of property. substantial annoyance. or injury to the public. How terminated X. business. or any body of water. establishment. private one. Classification Public nuisance Private nuisance Mixed nuisances The doing of or the failure One which violates only A thing may be a private to do something that private rights and produces nuisance without being a injuriously affects safety. Definition A nuisance is any act. D. 694 137 . or morals of the persons. condition of property. or (3) Shocks. damage to but one or few public one or a public health. or (2) Annoys or offends the senses.573 B. or (4) Obstructs or interferes with the free passage of any public highway or street. Nuisance A. omission. Rights and obligations of dominant and subservient estate E. or works some to be public. 573 Art. defies or disregards decency or morality.

He shall determine whether the third remedy. C. 699 575 The remedies are not exclusive but cumulative. 706 138 . without judicial proceedings575 Any person injured by a private nuisance may abate it by removing.576 3. it is indispensable that the procedure for extrajudicial abatement of a public nuisance by a private person be followed. the remedy must be availed of only with the intervention of the district health officer. All of the may be availed of by public officers. proceedings. by destroying the thing which constitutes the nuisance. However. Art. 2. without judicial 2. if the nuisance is especially injurious to the latter Role of district health officer and others with respect to public nuisance: The district health officer is charged with the duty to see to it that one or all of the remedies against a public nuisance are availed of. Civil action. 702 does not empower the district officer to abate a public nuisance to the exclusion of all other authorities. or other local ordinance. The action must be commenced by the city or municipal mayor. but a private person may also file an action if the public nuisance is especially injurious to him 576 Art. and the last two by private persons. or if necessary. It does not necessarily follow that the failure to observe art. Abatement. 702 is in itself a ground for the award for damages. A civil action. 705 577 Art. Abatement. a is the best remedy against a public nuisance. Prosecution under the Penal Code or any 1. Remedies Public nuisance574 Private nuisance 1. without committing a breach of the peace or doing unnecessary injury.577 574 Art.

hidden treasure and abandoned movables 580 Art. and in consequence of certain contracts. Definition An act of liberality whereby a person disposes gratuitously of a thing or right in favor of another. by donation. 713 581 Art. 712 579 such as animals that are the object of hunting and fishing. Occupation Things appropriable by nature which are without an owner579 are acquired by occupation.583 578 Art. Modes of Acquiring Ownership Ownership is acquired by occupation and by intellectual creation. or when the gift imposes upon the donee a burden which is less than the value of the thing given.581 When a person gives to another a thing or right on account of the latter's merits or of the services rendered by him to the donor. by testate and intestate succession.580 B. there is also a donation582 Acceptance must be made during the lifetime of the donor and of the donee. Donation 1. by tradition. 725 582 Art.XI. Ownership and other real rights over property are acquired and transmitted by law. They may also be acquired by means of prescription. provided they do not constitute a demandable debt. who accepts it. 726 583 Art.578 A. 746 139 .

Future property cannot be donated. and of all relatives who. or part thereof. 752 586 1.587 The donor may provide for reversion. Donee must reserve sufficient means for his support and for his relatives which are entitled to be supported by him. are by law entitled to be supported by the donor. 3. may be reduced on petition of persons affected. in full ownership or in usufruct. Except: conditional donation & donation mortis causa Except: future property 585 See Art. whereby the property donated shall “go back” to the donor or some other person. Donation should not prejudice creditors 4. Extent to which donor may donate property584 A person may not donate more than he can give by will and a person may not receive by way of donation more than what the donor is allowed by law to give by will.585 b. Reservations and reversions586 The donation may comprehend all the present property of the donor. sufficient means for the support of himself.588 584 What may be given: All or part of donor’s present property provided he reserves sufficient means for the support of the ff: a) himself b) relatives who by law are entitled to his support c) legitimes shall not be impaired when w/o reservation or if inofficious. Present property that can be donated: a) if the donor has forced heirs: he cannot give or receive by donation more than he can give of receive by will b) if the donor has no forced heirs: donation may include all present property provided he reserves in full ownership or in usufruct: 1) the amount necessary to support him. at the time of the acceptance of the donation. 757 A reversion in favor of the donor may be validly established “for any case and circumstances”. 140 . 2. the donation shall be reduced in petition of any person affected. Without such reservation. otherwise the donation shall be inofficious and shall be reduced with regard to the excess. provided he reserves. and 2) those relatives entitled to support from him 3) property sufficient to pay the donor’s debt contracted prior to the donation. 2. 587 A donor may donate all his present property or part thereof provided he reserves sufficient property in ownership or in usufruct for the support of himself and of all relatives who are entitled to be supported by him at the time of the perfection of the donation 588 See Art. Characteristics a.

id. (6) When the donee has committed an act of ingratitude as specified by the provisions of the Civil Code on donations in general594 If the revision is in favor of other persons. 141 . 86. 3. 83. in consideration of the same.590 b. the donee being the guilty spouse. and in favor of one or both of the future spouses.593 (2) When the marriage takes place without the consent of the parents or guardian. insofar as they are not modified by the following articles592 A donation by reason of marriage may be revoked by the donor in the following cases: (1) If the marriage is not celebrated or judicially declared void ab initio except donations made in the marriage settlements. Donation inter vivos589 When the donor intends that the donation shall take effect during the lifetime of the donor. and the donee acted in bad faith. 593 supra 594 Art. 82. as required by law.591 These donations are governed by the rules on ordinary donations. FC 592 Art. such other persons must be “living at the time of the donation 589 In case of doubt with regard to nature of donation: inter vivos 590 Art. Donation By Reason of Marriage Those which are made before its celebration. (3) When the marriage is annulled. The fruits of the property from the time of the acceptance of the donation. Kinds a. unless the donor provides otherwise. (5) If it is with a resolutory condition and the condition is complied with. (4) Upon legal separation. which shall be governed by Article 81. 729 591 Art. id. shall pertain to the donee. though the property shall not be delivered till after the donor's death.

595 d. c. Acceptance must be either: 2. Donation Mortis Causa Donations which are to take effect upon the death of the donor partake of the nature of testamentary provisions. in the same instrument. and shall be governed by the rules on Succession. b.000 – written in public or private 1. it may be oral/written – P5. conditional Simple Conditional Modal Gratuitous Valuable consideration is Imposes upon the donee imposed but value is less a burden which is less than value of thing than the value of the donated thing donated 4.596 e. Without simultaneous delivery: both deeds 595 Art. 733 142 . 728 Title conveyed upon donor’s death Void if donor survives done Always revocable Must comply with the formalities required by law for the execution of wills 596 Art. Onerous Donation Donations with an onerous cause shall be governed by the rules on contracts and remuneratory donations as regards that portion which exceeds the value of the burden imposed. notified to the donor in authentic form. Must be in a public instrument specifying property donated: the property donated and the burdens assumed by donee. Simple. How made and accepted Donations of movable property Donation of immovable property: a.000 or less. or document 2. Formalities required a. modal. and noted in b. regardless of value 1. if value exceeds P5. With simultaneous delivery of a. in another public instrument..

personal properties (1) Movables May be made orally or in writing. The donation and acceptance must be written in a public or private instrument. 749 143 . but it shall not take effect unless it is done during the lifetime of the donor. Differences between formalities for donation of real. specifying therein the property donated and the value of the charges which the donee must satisfy. The acceptance may be made in the same deed of donation or in a separate public document. and this step shall be noted in both instruments. the donation shall be void. If the acceptance is made in a separate instrument.598 (2) Immovables In order that the donation may be valid. If the value of the personal property donated exceeds five thousand pesos. Perfection597 c. regardless of value. 748 599 Art.599 597 See (a) How made and accepted. supra 598 Art. the donation and the acceptance shall be made in writing. Otherwise. it must be made in a public document. An oral donation requires the simultaneous delivery of the thing or of the document representing the right donated. b. the donor shall be notified thereof in an authentic form.

000 2.000 3. minors & other incapacitated a) by themselves . Future property cannot be donated. Effects of donation/limitations a. donee Donor Donee: All persons who may contract and 1. in donations propter nuptias.if pure & simple donation . natural guardian – not more than P50. In general Effects of donation Limitations on donation of property: 1. Present property that can be donated: 2. represented by person who would have been guardian if already born 6. donor’s warranty exists if donation may include all present property provided he reserves in full 144 .more than P50.if it does not require written acceptance b) by guardian. Qualifications of donor. donee may demand the delivery of the 1. except servitudes b) if the donor has no forced heirs: 4. legal representatives if needs written acceptance 1. court appointed . natural & juridical persons w/c are not especially dispose of their property disqualified by law 2. 5. thing donated 2. conceived & unborn child. donee is subrogated to the rights of the donor in the property a) if the donor has forced heirs: he cannot give or receive by donation 3. the donor more than he can give of receive by must release the property from will encumbrances.

no inscription. Donee must reserve sufficient means for his support and for his relatives which are entitled to be supported by him. If there are 2 or more donation: recent ones shall be suppressed 5. without accretion.in absence thereof. expressed ownership or in usufruct: b. If immovable – one who recorded in registry of property in good faith . a. donation is onerous 1) the amount necessary to support d. Action to reduce to be filed by heirs who have right to legitimate at time of donation 3. unless the donor’s debt contracted prior to contrary is stipulated. 3. donation is propter nuptias c. they are entitled to equal 3) property sufficient to pay the portions. Shall be reduced with regards to the excess 2. priority in right 1. and 2) those relatives entitled to 5. one who first took possession in good faith . donor is in bad faith him. the donation. Double donations Rule: Priority in time. when the donation is made to several support from him donees jointly. 1544 145 . If 2 or more donation at same time – treated equally & reduction is pro rata but donor may impose preference which must be expressly stated in donation 600 Art. If movable – one who first take possession in good faith 2. Donation should not prejudice creditors 4. Donees/creditors of deceased donor cannot ask for reduction of donation 4. Excessive/inofficious 1. b. one who can present oldest title600 c.

604 e. d. 759 146 . more than he may give or receive by will.602 The provisions of Article 750603 notwithstanding. at the time of the acceptance of the donation. the donee shall be responsible therefor only when the donation has been made in fraud of creditors. 752 605 Art. no person may give or receive. 751 603 See Reference 604 Art. in full ownership or in usufruct. or part thereof. The donation shall be inofficious in all that it may exceed this limitation. Without such reservation. 750 602 Art. In fraud of creditors There being no stipulation regarding the payment of debts. Scope of amount The donation may comprehend all the present property of the donor. The donation is always presumed to be in fraud of creditors.601 Donations cannot comprehend future property. by way of donation. sufficient means for the support of himself. the donation shall be reduced in petition of any person affected. and of all relatives who. are by law entitled to be supported by the donor. provided he reserves. when at the time thereof the donor did not reserve sufficient property to pay his debts prior to the donation.605 601 Art. By future property is understood anything which the donor cannot dispose of at the time of the donation.

or any one claiming under such witness.608 606 Art. (3) A guardian with respect to testamentary dispositions given by a ward in his favor before the final accounts of the guardianship have been approved. order. 7. (2) The relatives of such priest or minister of the gospel within the fourth degree. associations and corporations not permitted by law to inherit.606 Incapacity to succeed by will shall be applicable to donations inter vivos. descendant. or children. even if the testator should die after the approval thereof. (6) Individuals. or spouse. by reason of his office. descendants and ascendants. the spouse. Void Donations (1) Made between persons who were guilty of adultery or concubinage at the time of the donation. the church. nevertheless. in consideration thereof. In the case referred to in No. (2) Made between persons found guilty of the same criminal offense. sister.607 The following are incapable of succeeding: (1) The priest who heard the confession of the testator during his last illness. 1. nurse. (5) Any physician. or institution to which such priest or minister may belong. any provision made by the ward in favor of the guardian when the latter is his ascendant. parents. the action for declaration of nullity may be brought by the spouse of the donor or donee. and the guilt of the donor and donee may be proved by preponderance of evidence in the same action. surgeon. 1027 147 . brother. chapter. spouse. parents. (4) Any attesting witness to the execution of a will. (3) Made to a public officer or his wife. or children. 739 607 Art. 740 608 Art. health officer or druggist who took care of the testator during his last illness. organization. or the minister of the gospel who extended spiritual aid to him during the same period. shall be valid. community.

that is. no need needs court action needs court action for action.. children under his parental authority Donee imputes to donor any criminal offense or any cat involving moral turpitude even if he should prove it unless act/crime has been committed against donee himself. court decision is merely declaratory Extent: portion which may Extent: whole portion but Extent: Whole portion impair legitime of heirs court may rule partial returned 609 Affects the whole donation and is allowed during the lifetime of the donor Applies only to donation inter vivos Not applicable to onerous donations 610 Generally affects a portion only of the donation and is allowed during the lifetime of the donor or after his death 611 Art. How done Birth of child Non-fulfillment of condition Ingratitude Ipso jure revocation.. property of donor. 760 612 ibid 613 Donee commits offense against person. Grounds for revocation611 Revocation Reduction612 i. spouse. Revocation609 or reduction610 a. inofficiousness. appearance. 8. birth. ii. failure of the donor to reserve sufficient means for support of himself or dependent ii. the donation exceeds that which the donor can give by will. spouse or children under his parental authority Donee unduly refuses to give support to donor when legally or morally bound to give support to donor 148 . i. failure of the donor to reserve sufficient iii. iii. non – fulfillment of a resolutory relatives. condition imposed by the donor. b. honor. ingratitude of the donee613 property to pay off his existing debts. or adoption of a child.

revocation only Property must be returned Property in excess Property to be returned Alienation/mortgages done Alienations/mortgages Prior ones are void. etc. non-fulfilment knowledge of fact and it was possible for him to bring action Action cannot be renounced Action cannot be renounced in advance Right of action transmitted Right of action at instance of Heirs can’t file action to heirs donor but may be transmitted to heirs Action extends to donee’s Action does not extend to heirs donee’s heirs 149 . demand prior to recording in Register imposed are void unless value of property when of Deeds: registered with Register of alienated and can’t be If already sold or cannot Deeds recovered or redeemed from be returned – the value must 3rd persons be returned If mortgaged – donor may redeem the mortgage with right to recover from done Fruits to be returned at filing Fruits to be returned at filing of action for revocation of complaint Prescription of action is 4 Prescription is 4 years from Prescription is 1 year from years from birth.

614 In this case. 762 615 Art. 766 617 Art. with regard to third persons. the property donated shall be returned to the donor.615 Although the donation is revoked on account of ingratitude. the property affected shall be returned or its value if the donee has sold the same. 768 620 supra 150 . but this reduction shall not prevent the donations from taking effect during the life of the donor.616 The donor shall have a right to demand from the donee the value of property alienated which he cannot recover from third persons. Later ones shall be void. by the Mortgage Law and the Land Registration laws. 2 616 Art. bearing in mind the estimated net value of the donor's property at the time of his death. or the sum for which the same has been mortgaged. 614 Art. nor shall it bar the donee from appropriating the fruits. The value of said property shall be fixed as of the time of the donation. the donee shall return not only the property but also the fruits thereof which he may have received after having failed to fulfill the condition.617 When the donation is revoked for any of the causes stated in Article 760. If the revocation is based upon noncompliance with any of the conditions imposed in the donation. 618 or by reason of ingratitude. the alienations made by the donee and the mortgages imposed thereon by him being void. 764. or when it is reduced because it is inofficious. shall be reduced with regard to the excess.619 Donations which in accordance with the provisions of Article 752. with the limitations established. par. the donee shall not return the fruits except from the filing of the complaint.620 are inofficious. appearance or adoption of a child. c. 767 618 See Reference 619 Art. nevertheless. the alienations and mortgages effected before the notation of the complaint for revocation in the Registry of Property shall subsist. Effects Upon the revocation or reduction of the donation by the birth.

should have legitimate or legitimated or illegitimate children. (3) If the donor subsequently adopt a minor child. may be revoked or reduced by the happening of any of these events: (1) If the donor.625 are inofficious. after the donation. the provisions of Articles 911 and 912621 of this Code shall also govern. If the donor dies within the period of prescription. For the reduction of donations. whom the latter believed to be dead when he made the donation. (2) If the child of the donor. bearing in mind the estimated net value of the donor's property at the time of his death. taking into account the whole estate of the donor at the time of the birth. made by a person having no children or descendants. “by the happening” of any of the events mentioned in Article 760. d. or illegitimate. 622 The period to bring an action is four years. Prescription The donation is revoked ipso jure by operation of law. legitimate or legitimated by subsequent marriage. even though they be posthumous. The surviving spouse and the ascendants of the donor are not included. shall be reduced with regard to the excess.624 Donations which in accordance with the provisions of Article 752. but this reduction shall not prevent 621 See Reference 622 ibid 623 Art. 761 625 supra 151 . and the day from which the period shall begin to run depends upon the cause for the revocation or reduction. appearance or adoption of a child.623 The donation shall be revoked or reduced insofar as it exceeds the portion that may be freely disposed of by will. Inofficious Donations Every donation inter vivos. should turn out to be living. the action is transmitted to his legitimate and illegitimate children and descendants. 760 624 Art. c.

devisees and legatees. by reason of ingratitude in the following cases: (1) If the donee should commit some offense against the person. those of the more recent date shall be suppressed or reduced with regard to the excess. nor shall it bar the donee from appropriating the fruits. unless the crime or the act has been committed against the donee himself. The donees. there being two or more donations. or of his wife or children under his parental authority. to be counted from the time the donor had knowledge of the fact and it was possible for him to bring the action. his wife or children under his authority. either by express declaration. the honor or the property of the donor. 773 629 Art. 772 628 Art. even though he should prove it. Ingratitude The donation may also be revoked at the instance of the donor.628 d.626 Only those who at the time of the donor's death have a right to the legitime and their heirs and successors in interest may ask for the reduction or inofficious donations.630 626 Art. This action prescribes within one year. who are not entitled to the legitime and the creditors of the deceased can neither ask for the reduction nor avail themselves thereof. or by consenting to the donation. the disposable portion is not sufficient to cover all of them.629 The action granted to the donor by reason of ingratitude cannot be renounced in advance. 765 630 Art. or any act involving moral turpitude. (3) If he unduly refuses him support when the donee is legally or morally bound to give support to the donor. 771 627 Art. Those referred to in the preceding paragraph cannot renounce their right during the lifetime of the donor. 769 152 . (2) If the donee imputes to the donor any criminal offense.627 If.the donations from taking effect during the life of the donor.

Applicable to ownership and other real rights d. Definition One acquires ownership and other real rights through the lapse of time in the manner and under the conditions laid down by law.635 631 Art. 1106 632 One acquires ownership and other real rights through the lapse of time in the manner and under the conditions laid down by law. Results in the acquisition of ownership or other real rights in a person as well as the loss of said ownership or real rights in another f. Acquisitive632 May be ordinary or extraordinary. Ordinary634 a. PRESCRIPTION I.631 A. it is the possessor who is the actor b. Requires possession by a claimant who is not the owner c. Vests ownership or other real rights in the occupant e. Ordinary acquisitive prescription requires possession of things in good faith and with just title for the time fixed by law. 1117 634 requires possession of things in good faith and with just title for the time fixed by law 635 Art. Can be proven under the general issue without its being affirmatively pleaded 2. Characteristics a. Good Faith The good faith of the possessor consists in the reasonable belief that the person from whom he received the thing was the owner thereof. Relationship between the occupant and the land in terms of possession is capable of producing legal consequences.633 1. 1127 153 . 633 Art. and could transmit his ownership.

639 Art. 1132. 1119 642 Art.636 The title for prescription must be true and valid. without need of any other condition.643 If the natural interruption is for only one year or less. 1129 637 Art.644 636 Art.639 4. without need of title or of good faith. b. 2nd par.638 Ownership and other real rights over immovables also prescribe through uninterrupted adverse possession thereof for thirty (30) years. Requisites Possession has to be in the concept of an owner. but the grantor was not the owner or could not transmit any right.637 3. naturally or civilly. Just title There is just title when the adverse claimant came into possession of the property through one of the modes recognized by law for the acquisition of ownership or other real rights. 1130 638 Art.641 Possession is interrupted for the purposes of prescription. The old possession is not revived if a new possession should be exercised by the same adverse claimant.640 Acts of possessory character executed in virtue of license or by mere tolerance of the owner shall not be available for the purposes of possession. 1121 644 Art. Extraordinary The ownership of personal property also prescribes through uninterrupted possession for eight (8) years.642 Possession is naturally interrupted when through any cause it should cease for more than one year. peaceful and uninterrupted. 1118 641 Art. 1122 154 . 1120 643 Art. 1137 640 Art. public. the time elapsed shall be counted in favor of the prescription.

(3) If the possessor should be absolved from the complaint. without need of any other condition.647 5.649 Ownership and other real rights over immovable property are acquired by ordinary prescription through possession of ten (10) years. 1123 646 Art. 1124 647 Art. 1132 650 Art. (2) If the plaintiff should desist from the complaint or should allow the proceedings to lapse. or market. fair. as well as with respect to movables acquired in a public sale. 1125 648 See Reference 649 Art. the period of the interruption shall be counted for the prescription.650 In the computation of time necessary for prescription the following rules shall be observed: 645 Art. Period The ownership of movables prescribes through uninterrupted possession for four (4) years in good faith. With regard to the right of the owner to recover personal property lost or of which he has been illegally deprived. In all these cases. Civil interruption is produced by judicial summons to the possessor.646 Any express or tacit recognition which the possessor may make of the owner's right also interrupts possession. or from a merchant's store the provisions of articles 559 and 1505 648 of this Code shall be observed. The ownership of personal property also prescribes through uninterrupted possession for eight (8) years.645 Judicial summons shall be deemed not to have been issued and shall not give rise to interruption: (1) If it should be void for lack of legal solemnities. 1134 155 .

1960 655 Jocson. L-12998. 1960 156 . 1.651 6. whether real or personal 4. the possession by the offender may not be tacked to the successor’s possession653 Lands registered under the Torrens system cannot be acquired by prescription654 but this rule can be invoked only by one under whose name it was registered. although for purposes of computing the period of prescription. (2) It is presumed that the present possessor who was also the possessor at a previous time. et al. Should be affirmatively pleaded and proved to bar the action or claim of the adverse party 651 Art. Jaime. Results in the loss of a real or personal right. (3) The first day shall be excluded and the last day included. Silos. vs. What cannot be acquired by acquisitive prescription Movables possesses through a crime can never be acquired through prescription by the offender652 but his successors-in-interest may claim prescription.655 B. 533-534 654 Alfonso vs. Extinctive Rights and actions are lost through the lapse of time in the manner and under the conditions laid down by law. 1138 652 Art. (1) The present possessor may complete the period necessary for prescription by tacking his possession to that of his grantor or predecessor in interest. Characteristics 1. Requires inaction of the owner or neglect of one with a right to bring his action 3. L-12754. unless there is proof to the contrary. 30. Jan. July 25. 1133 653 See Arts. has continued to be in possession during the intervening time. Applies to all kinds of rights. One does not look to the act of the possessor but to the neglect of the owner 2. or bars the cause of action to enforce said right 6. Produces the extinction of rights or bars a right of action 5.

a thing capable of acquisition by prescription 3. Requisites 1. the offender can not acquire the movable by prescription. 157 . 2. Periods Movables Immovables Good Faith 4 years 10 years Bad Faith 8 years656 30 years 656 except where the loss was due to a crime in which case. lapse of time provided by law 3. and an action to recover it from him is imprescriptible. capacity to acquire by prescription 2. possession of thing under certain conditions 4.

1133 658 See reference 659 Art. or any person who by virtue of a real right may cultivate or use any immovable. among others. the indemnity shall consist in the payment of the damage caused by such encumbrance. To abate a nuisance660 657 Art. Action legal to demand a right of way The owner. are not extinguished by prescription: 1. Should this easement be established in such a manner that its use may be continuous for all the needs of the dominant estate. 649 660 Art. Registered Lands – PD 1529658 C. which is surrounded by other immovables pertaining to other persons and without adequate outlet to a public highway.II. the indemnity shall consist of the value of the land occupied and the amount of the damage caused to the servient estate. establishing a permanent passage.657 B. No Prescription Applicable A. is entitled to demand a right of way through the neighboring estates. In case the right of way is limited to the necessary passage for the cultivation of the estate surrounded by others and for the gathering of its crops through the servient estate without a permanent way. This easement is not compulsory if the isolation of the immovable is due to the proprietor's own acts. The following rights. 1143 158 . after payment of the proper indemnity. By Offender Movables possessed through a crime can never be acquired through prescription by the offender.659 2.

insofar as his share is concerned. Nevertheless. 1410 663 Art. 662 Art. Action to demand partition No co-owner shall be obliged to remain in the co-ownership.661 E. D. Void contracts The action or defense for the declaration of the inexistence of a contract does not prescribe. He may wait until his possession is disturbed or his title is attacked before taking steps to vindicate his right. This term may be extended by a new agreement. Neither shall there be any partition when it is prohibited by law. shall be valid. proceeding or suit upon the adverse claim. Action to quiet title if plaintiff in possession If the plaintiff is in possession of the property. he has a continuing right to be given aid by the court to ascertain and determine the nature of such claim and its effect on his title.663 661 Reason: While the owner continues to be liable to an action. not exceeding ten years.662 F. Each co-owner may demand at any time the partition of the thing owned in common. No prescription shall run in favor of a co-owner or co-heir against his co-owners or co-heirs so long as he expressly or impliedly recognizes the co-ownership. or to assert any superior equity in his favor. A donor or testator may prohibit partition for a period which shall not exceed twenty years. an agreement to keep the thing undivided for a certain period of time. the action does not prescribe. 494 159 .

For public service665 3. based on a fixed time G. question of inequity of permitting the 2. 664 e. to do that which. applies at law 5. not based on a fixed time 5. For the development of the national wealth. statutory 4. concerned with effect of delay 1. concerned with fact of delay 2. 1. question or matter of time claim to be enforced 3. rivers 665 e. Distinguished from laches Laches or “Stale demands: Failure or neglect. applies in equity 4. canals. by exercising due diligence.g. for an unreasonable and unexplained length of time. Property of public dominion 1. public buildings 160 . For public use664 2. warranting a presumption that the party entitled to assert it either has abandoned it or declined to assert it. it is negligence or omission to assert a right within reasonable time. roads. could or should have been done earlier. not statutory 3.g. Laches Prescription 1.

668 The following rights. To recover immovables667 C. (2) Upon an obligation created by law. 1140.673 666 Art. Ibid. supra 667 Art. (3) Upon a judgment. 1142 669 See reference 670 Art. (2) Upon a quasi-delict. 668 Art. are not extinguished by prescription: (1) To demand a right of way. among others. (2) Upon a quasi-contract. 1146 161 . 1143 671 Art.670 The following actions must be brought within ten (10) years from the time the right of action accrues: (1) Upon a written contract. To recover movables666 B.669 (2) To bring an action to abate a public or private nuisance. regulated in Article 649.672 The following actions must be instituted within four (4) years: (1) Upon an injury to the rights of the plaintiff. Prescription or Limitation of Actions A. 1141. 1145 673 Art. 1144 672 Art.671 The following actions must be commenced within six (6) years: (1) Upon an oral contract. Other actions A mortgage action prescribes after ten (10) years.III.

678 674 Art. 1155 162 . (2) For defamation. and when there is any written acknowledgment of the debt by the debtor. and 1144 to 1147675 are without prejudice to those specified in other parts of this Code.674 The limitations of action mentioned in Articles 1140 to 1142. in the Code of Commerce. 1147 675 supra 676 Art. Interruption When the actions are filed before the court. The following actions must be filed within one (1) year: (1) For forcible entry and detainer.676 All other actions whose periods are not fixed in this Code or in other laws must be brought within five (5) years from the time the right of action accrues. and in special laws. 1149 678 Art. when there is a written extrajudicial demand by the creditors. 1148 677 Art.677 IV.

1156 680 obligee or creditor 681 obligor or debtor 682 the subject matter of the obligation 683 Requisites: 1. it must be possible. it must have a possible equivalent in money 684 vinculum or juridical tie 163 . II. or doing or not doing a certain act683and 4. physically & juridically 3.679 one impressed with the character of enforceability. Definition A juridical necessity to give. Efficient cause684 The reason why the obligation exists 679 Art. to do or not to do. it must be determinate or determinable 4. 2. 3. Elements of an Obligation The possessor of a right. OBLIGATIONS I. he in 1. doing or not doing. Object or prestation682 May consist of giving a thing. it must be licit 2. Passive subject681 He who has the duty of giving. Active subject680 whose favor the obligation is constituted.

includes “not to give. b. shall depend upon the happening of the event which constitutes the condition. Criteria of demandability: a.It annuls the obligation w/c depends upon them.one w/c is not subject to a condition or a term. Plurality of objects a. in order to create a real right or for the use of the recipient or for its simple possession or in order to return to its owner 2.-. Pure . whether mental or physical 3. Different Kinds of Prestations 1. Conditional .-. It is the knowledge w/c is future and uncertain. as well as the extinguishment or loss of those already acquired. Effect of Impossible Condition. A condition is always future and uncertain.685 c.III. Single 685 Art. The entire juridical tie is tainted by the impossible condition. Classification of Obligations 1. 1181 A past thing can never be a condition. Not to do Consists in abstaining from some act. W/ a term686 - 2.It is really the knowledge of the event w/c constitutes the future. Past event unknown to the parties. To give Consists in the delivery of a movable or an immovable thing. To do All kinds of work or services.” both being negative obligations IV.the acquisition of rights. 686 see Reference 164 .

The demand by one creditor upon one debtor.one in w/c each of the debtors is liable only for a proportionate part of the debt or each creditor is entitled only to a proportionate part of the credit. nor does it authorize a creditor to demand anything from his co-creditors. produces the effects of default only w/ respect to the creditor who demanded and the debtor on whom the demand was made.689 e.where only one thing is due but the debtor has reserved the right to substitute it w/ another688 d. 3. but not w/ respect to the others. Joint . the fulfillment of one is sufficient (Tolentino) 688 Art.one in w/c the debtor is liable for the entire obligation or each creditor is entitled to demand the whole obligation.) 165 . Plurality of subjects b. does not benefit the other creditors nor interrupt the prescription as to other debtors. 5. On the same principle. 3. 4. Effects of Joint Liability: 1. Divisible . Solidary . Facultative . The vices of each obligation arising from the personal defect of a particular debtor or creditor does not affect the obligation or rights of the others. 4. There is only one obligation is a solidary obligation. Performance a. 1206 689 there are as many obligations as there are debtors multiplied by the number of creditors. In the joint divisible obligation. several objects being due. The insolvency of a debtor does not increase the responsibility of his co-debtors. Alternative . the defense of res judicata is not extended from one debtor to another. 2. 687 The characteristic of alternative obligations is that. (Manresa. The interruption of prescription by the judicial demand of one creditor upon a debtor.one susceptible of partial performance.where the debtor must perform any of the prestations687 c. a partial payment or acknowledgement made by one of several joint debtors does not stop the running of the statute of limitations as to the others.

) Three Exceptions to the Rule on Indivisibility: 1. 166 .an accessory undertaking to assume greater liability in case of breach. Sources of Obligations692 A. 1980 Ed. A single act or omission can give rise to different causes of action It is a source of obligation because of the provision in Article 100 of the Revised code that “every person criminally liable is also civilly liable. 3. Quasi-contracts 4. 1248. the creditor cannot be compelled partially to receive the prestations in which the obligation consists.”693 B. 1248. Indivisible . Performance after the civil obligation has prescribed. Do not grant such right of action to enforce their performance 695 Examples of natural obligations enumerated under the Civil Code: 1. W/ a penal clause . Contracts 3. The Philippine Law on Obligations and Contracts Explained.. When a penal clause is present. 1. p.) 2. Why? Bec. Simple b. Where the law provides otherwise. par. Neither may the debtor be required to make partial payments. b. damages do not have to be proved.695 690 General rule: Obligation is indivisible w/c means that it has to be performed in one act singly. Natural Obligations694 They are real obligations to which the law denies an action. par. Acts or omissions punished by law and 5. 693 Nolledo. but which the debtor may perform voluntarily. 2 694 a. the law provides so: Unless there is an express stipulation to that effect. 692 Obligations arise from: 1.691 V. Jose N. When the parties so provide. 691 The purpose is to strengthen the coercive force of the obligation. When the nature of the obligation necessarily entails performance in parts. Law 2.. Based not on positive law but on equity and natural law b.one that must be performed in one act. (Art. Sanctions for Breach a. 1.690 5. Quasi-delicts. xxx (Art.

5. 2142 to 2194 697 obligation ex quasi-contractu 698 This takes place when a person voluntarily takes charge of another’s abandoned business or property without the owner’s authority 699 This takes place when something is received when there is no right to demand it. There must be fault or negligence attributable to the person charged b. There must be damage or injury c. Reimbursement of a third person for a debt that has prescribed. and which has for its purpose. Quasi-delict/torts700 . Delivery by minor of money or fungible thing in fulfillment of obligation. Extra-contractual Obligations696 1. C. and 7. Quasi-contract697 . 6.701 2. There must be a direct relation of cause and effect between the fault or negligence on the one hand and the damage or injury on the other hand ( proximate cause ) 167 . and it was unduly delivered thru mistake 700 obligation ex quasi-delicto or ex quasi maleficio 701 Elements: a. the payment of indemnity to the end that no one shall be unjustly enriched or benefited at the expense of another 2 kinds: a. Payment by heir of debt exceeding value of property inherited. Restitution by minor after annulment of contract. Solutio indebiti .undue payment 699 2. there being no pre-existing contractual relations between the parties. Performance after action to enforce civil obligation has failed. 3.That juridical relation resulting from a lawful. Negotiorum gestio . voluntary and unilateral act.unauthorized management698 b. 4.It is a fault or act of negligence ( or omission of care ) which causes damage to another. Payment of legacy after will have been declared void. 696 Arts.

706 B. Obligation to give702 1. Nature and Effect of obligations A. in addition to the right granted him by Article 1170. To take care of the thing w/ the diligence of a good father of a family until actual delivery. 1164) 3. 1166) 703 See reference 704 Art.705 2.(Art. 1165. Obligation to do or not to do Obligations to do In Obligations not to do If a person is obliged to do something. To deliver accessions and accessories(Art. 1165 .704 The obligation to give a determinate thing includes that of delivering all its accessions and accessories.(Art. must be done as promised. 1166 706 Art. 1163) 2. This same rule shall be observed if he does it in contravention of the tenor of the obligation. Gonzales. he may ask that the obligation be complied with at the expense of the debtor.VI. and it cannot be and the obligor does what has been substituted by another act or forbearance forbidden him. Furthermore. 32 SCRA 547 168 . the creditor. An indeterminate or generic thing If the thing is indeterminate or generic. 707 see Art. 1st par. even though they may not have been mentioned. it may be decreed 702 Three Accessory Obligations: 1. it When the obligation consists in not doing.710 fails to do it. To deliver the fruits to the creditor (fruits produced after obligation to deliver arises). A determinate or specific thing When what is to be delivered is a determinate thing. it shall also be undone at his against the obligee’s will707. 2nd par. 1244 708 see Chavez vs. the same shall be executed at his cost708 albeit he may not be compelled to do so personally or by himself. If the obligor expense.703 may compel the debtor to make the delivery. 705 Art.

1168. Ex re – obligation is to give 2. 169 . 41 Phil. Demand is useless as when obligor has rendered beyond his power to perform 4. while he himself does not comply or is not ready to comply in a proper manner with what is incumbent upon him. Chan. Default. Demand is still necessary if their respective obligations are to be performed on separate dates. 1169 The general rule is that fulfillment by both parties should be simultaneous except when different dates for the performance of obligation is fixed by the parties. Cui vs. There is acknowledgment of default. In reciprocal obligations. It may be: 1.714 a. Breaches of obligations 1. 523 709 Art. 714 see Art. 715 There can be delay only in positive obligations (to give/to do).that what has been poorly done be undone.709 C. 1167 711 debtor is not liable for damages 712 Non-fulfillment of the obligation with respect to time 713 There must be a demand (judicial or extra-judicial) before delay may be incurred. There can be no delay in negative obligations (not to give/not to do). one party incurs in delay from the moment the other party fulfills his obligation. Ex persona – obligation is to do715 710 see Art. Obligation or law expressly so declares 2. Time is of the essence of the contract 3. Mora solvendi Delay of the debtor to perform his obligation. Complete failure to perform Debtor is unable to comply with his obligation because of fortuitous event.713 exceptions 1. delay or mora712 – no default unless creditors makes a demand.711 2.

Compesatio morae Delay of the parties or obligors in reciprocal obligation.719 716 Deliberate and intentional evasion of the fulfillment of an obligation 717 Art. 1171 Future fraud cannot be waived because it would result to illusory obligation. Contravention of the tenor of obligation The faithful observance of an obligation according to its tenor is mandated by law. Any waiver of an action for future fraud is void. 3. Fraud in the performance of obligation716 a. 719 see Art. Diligence normally required is ordinary diligence or diligence of a good father of a family b.717 4. 1170 170 . Negligence (culpa)718 in the performance of obligation a. Mora accipiendi Delay of the creditor to accept the delivery of the thing w/c is the object of the obligation c. an unexcused failure thereof renders the obligor liable for losses and damages caused thereby. Waiver of future fraud is void Responsibility arising from fraud is demandable in all obligations. Exceptions: common carriers which are required to exercise extraordinary diligence 5. b. 718 Omission of that diligence which is required by the nature of the obligation and corresponds with the circumstances of the persons. of the time and of the place Negligence can be waived unless the nature of the obligation or public policy requires extraordinary diligence as in common carrier.

requisites Fortuitous event720. 1165(3). Legal excuse for breach of obligation – fortuitous event. Requisites: 1. 722 Lasam vs. When expressly declared by stipulation or contract 3. occurrence must be such as to render it impossible for the debtor to fulfill his obligation in a normal manner 4.an event which could not be foreseen or which though foreseen. When expressly declared by law (e.g.) 2. Article 552(2). the event must be unforeseeable or unavoidable 3. When the nature of the obligation requires the assumption of risk 4 When the obligor is in default or has promised to deliver the same thing to 2 or more persons who do not have the same interest [Article 1165(3)]. 1942. cause is independent of the will of the debtor721 2. Exceptions: 1. 45 Phil. 1268. debtor must be free from any participation in the aggravation of the injury resulting to the creditor722 720 General Rule: No liability in case of fortuitous event. 6. Smith. 2147. 721 It must not only be the proximate cause but it must be the only and sole cause. was inevitable. 2148 and 2159 of the Civil Code. 657 171 .

unless a purely personal act Obligation to give generic thing Obligation to do If the thing is indeterminate or generic. the creditor. in addition to the right granted him by Art 1170. Exception: Imposition of personal force or coercion upon the debtor to comply with his obligation - tantamount to involuntary servitude and imprisonment for debt 172 .726 it in contravention of the tenor of the obligation. it may be decreed that what has been done poorly be undone. 1165. Remedies available to creditor in cases of breach 1. D. Furthermore. par 1. 1167 The court has no discretion to merely award damages to the creditor when the act can be done in spite of the refusal or failure of debtor to do so. see also ROC Rule 39. Par 2 Delivery of anything belonging to the species stipulated will be sufficient. Specific Performance723 When what is to be delivered is a determinate thing. the same shall be executed at his cost. Debtor cannot avoid obligation by paying damages if the creditor insists on the performance.725 a.724 may compel the debtor to make the delivery. Sec 10 726 Art 1165. 727 Art. Substituted performance by a third person on obligation to deliver generic thing and in obligation to do.727 723 in obligation to give specific thing 724 indemnification for damages 725 Art. complied with at the expense of the This same rule shall be observed if he does debtor. he If a person obliged to do something fails to may ask that the obligation be do it.

not permitted in casual/slight breach. Hawaiian Philippines) Rescission requires judicial approval to produce legal effect Exception: object is not yet delivered and obligation has not yet been performed If the obligation has not yet been performed: extrajudicial declaration of party willing to perform would suffice. There can be no partial performance and partial rescission. and each shall bear his own damages. In the case the other party impugns rescission. the court comes in either to: a. unless there be just cause authorizing the fixing of a period. If it cannot be determined which of the parties first violated the contract. party who did not perform not entitled to insist upon the performance of the contract by the defendant or recover damages by reason of his own breach Rights of injured party subordinated to the rights of a 3rd person to whom bad faith is not imputable Not absolute.730 with the payment of damages in either case. 1192 173 . Rescission728 The power to rescind obligations is implied in reciprocal ones. if the latter should become impossible. in case one of the obligors should not comply with what is incumbent upon him. in accordance with articles 1385731 and 1388732 and the Mortgage Law. may only be claimed in substantial breach (Song Fo v. Give a period to the debtor in which to perform 730 The remedy is alternative.733 In case both parties have committed a breach of the obligation.734 728 resolution in reciprocal obligations Only applies to reciprocal obligations. Reciprocal obligations have a “tacit resolutory condition” 729 Power to rescind: Pertains to the injured party. Declare the rescission as properly made b.729 The injured party may choose between the fulfillment and the rescission of the obligation.e. the same shall be deemed extinguished. 731 See Reference 732 ibid 733 Art. creditor debtor relations arise from the same cause or “identity of cause”. rescission produces legal effect). the liability of the first infractor shall be equitably tempered by the courts. can refuse to perform if the other party is not yet ready to comply If the injured party has already performed: cannot extrajudicially rescind IF the other party opposes the rescission (otherwise. even after he has chosen fulfillment. Party seeking rescission can only elect one between fulfillment and rescission. where there is “reciprocity” between the parties i. 1191 734 Art. 2. He may also seek rescission. This is understood to be without prejudice to the rights of third persons who have acquired the thing. The court shall decree the rescission claimed.

4. 1177. Accion pauliana738 Creditors have the right to set aside or revoke acts which the debtor may have done to defraud them. and then obtain therefrom the satisfaction of his own credit. See Reference Payments of pre-existing obligations already due. whether by gratuitous or onerous title. Subsidiary remedies of creditors a. 1729 174 . cannot be impugned by an accion pauliana 739 Arts. any balance shall pertain to the debtor Patrimony of the debtor (includes both present and future property) is liable for the obligations he may contract by being a legal guaranty in favor of his creditors. 1652. Damages. in any event In case of breach of the obligation. last sentence and 1381. whether natural or civil.741 735 Art. 1652 741 See Art.737 b.740 Right of the laborers or persons who furnish materials for a piece of work undertaken by a contractor to go directly to the owner for any unpaid claims due to the contractor. Accion subrogatoria736 Action which the creditor may exercise in place of the negligent debtor in order to preserve or recover for the patrimony of the debtor the product of such action. see reference 740 See Art. Responsibility for damages is indivisible 736 An action against the debtor’s debtor 737 subrogatory action. 1170. See Reference Recoverable damages include any and all damages that a human being may suffer. c. See Art. 3. can be revoked by this action. All acts of the debtor which reduce his patrimony in fraud of his creditors. 1177 Previous approval of court is not necessary Plaintiff entitled only to so much as is needed to satisfy his credit. 1729 & 1893.735 exclusive or in addition to specific performance. Hence. he cannot maliciously reduce such guaranty 738 rescissory action An action to rescind contracts entered into by the debtor in fraud of creditors ( Arts. Accion directa739 Right of the lessor to go directly to sublessee for unpaid rents of the lessee. 1608. 3. par.

"I will give you my plantation in Davao provided you reside in Davao permanently. the obligation shall be deemed to be one with a period. shall depend upon the happening of the event which constitutes the condition.746 third person or upon parties and partly on either chance.742 B. 3." 747 e. Suspensive condition744 The happening of the event gives birth to an obligation 2. which is demandable at once.. as well as the extinguishment or loss of those already acquired.VII. 1180) 743 Art. "I will give you my land in Pampanga if you will pass the bar exams this year. Kinds of Civil Obligations A. When the debtor binds himself to pay when his means permit him to do so.747 chance or the will of a third person. without prejudice to the effects of the happening of the event. casual or mixed Potestative Casual Mixed One w/c depends solely on One where the condition is One w/c depends partly the will of either one made to depend upon a upon the will of one of the party. Conditional The acquisition of rights. 1179 Every obligation which contains a resolutory condition shall also be demandable.g." 175 ..743 1. or upon a past event unknown to the parties. Potestative. subject to the provisions of Article 1197 (Art. Resolutory condition745 The happening of the event will extinguish the obligation. 1181 744 condition precedent 745 condition subsequent 746 e. Pure The performance does not depend upon a future or uncertain event. 742 Art.g.

When the obligation imposes reciprocal prestations upon the parties. (3) When the thing deteriorates without the fault of the debtor.749 5. a. or goes out of commerce. shall retroact to the day of the constitution of the obligation. the obligation shall take effect.748 4. Effect of improvement. 748 Art. he shall be obliged to pay damages. the obligation shall be extinguished. If the obligation is unilateral. the retroactive effect of the condition that has been complied with. the fruits and interests during the pendency of the condition shall be deemed to have been mutually compensated. it is understood that the thing is lost when it perishes. the conditional obligation shall be void. 1187 176 . 1182 749 Art. loss or deterioration of specific thing before the happening of a suspensive condition in obligation to do or not to do Rules in case of the improvement. the courts shall determine. once the condition has been fulfilled. Effect of the happening of suspensive condition or resolutory condition a) Extent of retroactivity The effects of a conditional obligation to give. loss or deterioration of the thing during the pendency of the condition: (1) If the thing is lost without the fault of the debtor. If it depends upon chance or upon the will of a third person. or disappears in such a way that its existence is unknown or it cannot be recovered. the debtor shall appropriate the fruits and interests received. unless from the nature and circumstances of the obligation it should be inferred that the intention of the person constituting the same was different. in each case. In obligations to do and not to do. (2) If the thing is lost through the fault of the debtor. Obligations subject to potestative suspensive conditions are void When the fulfillment of the condition depends upon the sole will of the debtor. the impairment is to be borne by the creditor.

A day certain is understood to be that which must necessarily come. 1189 751 supra 752 Art. 1193 177 . (6) If it is improved at the expense of the debtor. Effect when a resolutory condition in obligation to do or not to do happens and there is improvement. which is demandable only when that day comes. If the uncertainty consists in whether the day will come or not. the creditor may choose between the rescission of the obligation and its fulfillment. he shall have no other right than that granted to the usufructuary. (4) If it deteriorates through the fault of the debtor. the debtor cannot compel acceptance before the arrival of the term. although it may not be known when. 754 Art. loss or deterioration of the specific thing The provisions of the second paragraph of Article 1187751 shall be observed as regards the effect of the extinguishment of the obligation. but terminate upon arrival of the day certain. The consequence is that the creditor cannot compel the performance before the arrival of the term. or by time. par. Obligation with a period or a term753 Obligations for whose fulfillment a day certain has been fixed. Obligations with a resolutory period take effect at once. the presumption is that it is for the benefit of both parties. 1190.754 750 Art.752 C.750 6. the obligation is conditional. with indemnity for damages in either case. (5) If the thing is improved by its nature. the improvement shall inure to the benefit of the creditor. 3 753 General rule: If a period is attached in an obligation.

it is presumed to have been established for the benefit of both the creditor and the debtor. in consideration of which the creditor agreed to the period." This is a term for the benefit of the debtor. he becomes insolvent.000 on or before Oct.755 2. (4) When the debtor violates any undertaking. but the debtor can insist on payment before the period. (3) When by his own acts he has impaired said guaranties or securities after their establishment. 758 Art. performance anytime.1196 756 The obligation has already arisen except that it is not yet demandable 757 Illustrations: "I promise to pay within 60 days." This is a term for the benefit of the debtor. 1996. unless from the tenor of the same or other circumstances it should appear that the period has been established in favor of one or of the other.758 755 Art. Presumption that period is for the benefit of both debtor and creditor Whenever in an obligation a period is designated. unless he gives a guaranty or security for the debt. 1. Effect if given to debtor alone a) Instances when debtor losses benefit of period (1) When after the obligation has been contracted. (2) When he does not furnish to the creditor the guaranties or securities which he has promised. (5) When the debtor attempts to abscond. 1198 178 . Effect if suspensive period756 is for the benefit of both debtor and creditor Term is for the benefit of the creditor Term is for the benefit of the debtor The creditor can demand performance The creditor cannot demand performance anytime. 31. unless he immediately gives new ones equally satisfactory. and when through a fortuitous event they disappear. "I promise to pay Clara the sum of P100.757 3. but the debtor cannot insist on anytime.

In every case. it is difficult to distinguish the two. The creditor cannot be compelled to receive part of one and part of the other undertaking. 762 Facultative obligations always involve choice by the debtor. The courts shall also fix the duration of the period when it depends upon the will of the debtor. 1199 A person alternatively bound by different prestations shall completely perform one of them. Alternative or Facultative761 1. 4. Once fixed by the courts. but terminate upon arrival of the day certain. 759 in diem. But in practice. In theory.760 b. Definite or indefinite period a. the accessory being only a means to facilitate payment. Instances when courts may fix the period If the obligation does not fix a period. Resolutory period Obligations with a resolutory period take effect at once. but from its nature and the circumstances it can be inferred that a period was intended. the courts shall determine such period as may under the circumstances have been probably contemplated by the parties. Difference between alternative and facultative obligations762 Alternative Facultative As to contents of the obligation There are various prestations all of w/c Only the principal prestation constitutes constitute parts of the obligation the obligation. the period cannot be changed by them. You just have to find out what the parties really intended (Balane) 179 . or resolutory 760 Art.759 5. 1197 761 Art. it is easy to distinguish a facultative obligation from an alternative one. Creditor must ask court to set the period before he can demand payment D.

763 2. As to effect of loss Only the impossibility of all the prestations The impossibility of the principal prestation due w/o fault of the debtor extinguishes the is sufficient to extinguish the obligation. the latter is liable to indemnify the creditor for damages. If the choice is limited through the creditor's own acts. obligation even if the substitute is possible. 1205 (1) 769 Id. If one or some are lost through the resolution plus damages. As to choice The right to choose may be given to the Only the debtor can choose the substitute creditor prestation. through fault of debtor/creditor or through fortuitous events Choice is debtor's Choice is the creditor's a. 1204 768 Art. (2) 180 . When only one prestation is left. 1202 766 Art. If one or some are lost through fortuitous debtor may perform the one that is left. the creditor has choice from the remainder or the value of the things lost c. If everything is lost through the debtor's plus damages. w/c is still in force invalidates the obligation and the creditor w/ respect to those w/c have no vice cannot demand the substitute even when this is valid. If all are lost through the debtor's fault.765 event. the creditor may choose from those remaining.768 b.766 debtor's fault.764 the a. the debtor can ask for b. 763 IV Tolentino 764 whether or not the rest of the prestations have been lost through fortuitous event or through the fault of the debtor 765 Art. 1203 767 Art. Effect of loss of specific things or impossibility of performance of alternative.767 c.769 fault. As to nullity The nullity of one prestation does not The nullity of the principal prestation invalidate the obligation.

If all but one are lost through the fault of the debtor and the last one was lost through through fortuitous event. If some things are lost through the the choice of the creditor shall fall upon the debtor's fault.770 e. the obligation is extinguished. or that each one of the latter is bound to render. the creditor may choose from the remainder. prestation was lost through the debtor's the obligation is extinguished. the debtor can still choose price of any of them. fault. w/ indemnity for from those remaining. fault. entire compliance with the prestation. f. and the remaining e. If all are lost through fortuitous event. Joint and Solidary obligation A. Concurrence of two or more creditors and or two or more debtors a. (3) 771 Art. VIII. Joint (divisible) obligation 1. unless otherwise indicated by the law or nature of obligation The concurrence of two or more creditors or of two or more debtors in one and the same obligation does not imply that each one of the former has a right to demand. 1207 181 . or when the law or the nature of the obligation requires solidarity. If all are lost through the creditor's fault. the obligation is extinguished. Joint obligation is presumed. If all prestations but one are lost through fortuitous event. the latter is liable to indemnify the creditor for damages. damages. d. f. If some are lost through the creditor's the obligation is extinguished. If all are lost through fortuitous event. g.771 770 Id.d. There is a solidary liability only when the obligation expressly so states.

773 d. and the debt can be enforced only by proceeding against all the debtors. Joint Indivisible Obligation 1. Insolvency of a joint debtor. 1224 182 . Each credit is distinct from one another. the right of the creditors may be prejudiced only by their collective acts. Obligation presumed to be divided into as many equal shares as there are creditors or debtors The credit or debt or deemed divided into as many shares as there are creditors or debtors to each other.775 2.772 c. b. Obligation cannot be performed in parts but debtors are bound jointly Generally. 1233 and 1248 776 Art. others not liable for his share774 B. In case of failure of one joint debtor to perform his part (share). there is default but only guilty debtor shall be liable for damages A joint indivisible obligation gives rise to indemnity for damages from the time anyone of the debtors does not comply with his undertaking. obligations are indivisible since the integrity of the obligations requires their payment or performance completely.776 772 see Art. although he may pay if he wants to If the division is impossible. If one of the latter should be insolvent. The debtors who may have been ready to fulfill their promises shall not contribute to the indemnity beyond the corresponding portion of the price of the thing or of the value of the service in which the obligation consists. the others shall not be liable for his share. 1208 773 Art. 1209 774 ibid 775 Arts. each resulting credit or debt being considered distinct from one another. therefore a joint debtor cannot be required to pay for the share of another with debtor.

in case the debt had been totally paid by anyone of them before the remission was effected. no interest for the intervening period may be demanded. made by any of the solidary creditors or with any of the solidary debtors. but if any demand. 1215 780 Art. He who made the payment may claim from his co-debtors only the share which corresponds to each.780 Payment made by one of the solidary debtors extinguishes the obligation. payment should be made to him. shall extinguish the obligation. in proportion to the debt of each. When one of the solidary debtors cannot.779 2. 779 Art. shall be liable to the others for the share in the obligation corresponding to them. 1216 781 Art. avail himself of all defenses which are derived from the nature of the obligation and of those which are personal to him. without prejudice to the provisions of Article 1219. 1217 183 . compensation. has been made by one of them. If the payment is made before the debt is due. Solidary obligation 1. as well as he who collects the debt. judicial or extrajudicial. with the interest for the payment already made.778 The creditor who may have executed any of these acts. 1214 778 The remission made by the creditor of the share which affects one of the solidary debtors does not release the latter from his responsibility towards the co-debtors. confusion or remission of the debt. in actions filed by the creditor. Mutual guaranty among solidary debtors The creditor may proceed against any one of the solidary debtors or some or all of them simultaneously. reimburse his share to the debtor paying the obligation. the creditor may choose which offer to accept. The demand made against one of them shall not be an obstacle to those which may subsequently be directed against the others.777 Novation. because of his insolvency. If two or more solidary debtors offer to pay. so long as the debt has not been fully collected.781 A solidary debtor may. C. such share shall be borne by all his co-debtors. or pertain to his own share. Mutual agency among solidary debtors The debtor may pay any one of the solidary creditors. With respect to those which personally belong to the 777 Art.

785 D. he may avail himself thereof only as regards that part of the debt for which the latter are responsible. 1215 786 Art. The penalty may be enforced only when it is demandable.787 782 Art. compensation. 1222 783 Art. The creditor who may have executed any of these acts. Each one of solidary creditors may do whatever may be useful to the others. the accomplishment of work by metrical units.786 E. without prejudice to the provisions of Article 784 1219. When the obligation has for its object the execution of a certain number of days of work. Divisible and Indivisible Obligations to give definite things and those which are not susceptible of partial performance shall be deemed to be indivisible.782 3. However. an obligation is indivisible if so provided by law or intended by the parties. is liable to the others for the share in the obligation corresponding to them. even though the object or service may be physically divisible. but not anything prejudicial to them783 a) Effect of any novation. or analogous things which by their nature are susceptible of partial performance. divisibility or indivisibility shall be determined by the character of the prestation in each particular case. 1225 787 Art.others. 1226 184 . if there is no stipulation to the contrary. 1212 784 supra 785 Art. Obligations with a Penal Clause The penalty shall substitute the indemnity for damages and the payment of interests in case of noncompliance. as well as he who collects the debt. it shall be divisible. Damages shall be paid if the obligor refuses to pay the penalty or is guilty of fraud in the fulfillment of the obligation. confusion or remission of debt executed by a solidary creditor The obligation is extinguished. In obligations not to do.

791 Whoever pays on behalf of the debtor without the knowledge or against the will of the latter. 1238 185 . cannot compel the creditor to subrogate him in his rights. which requires the debtor's consent. 1236 792 Art. 1229 790 Art. Extinguishment of Obligations A. Proof of actual damages suffered by the creditor is not necessary in order that the penalty may be demanded. 1228 789 Art. guaranty.790 IX.792 Payment made by a third person who does not intend to be reimbursed by the debtor is deemed to be a donation. But the payment is in any case valid as to the creditor who has accepted it793 788 Art. unless there is a stipulation to the contrary. Payment The creditor is not bound to accept payment or performance by a third person who has no interest in the fulfillment of the obligation. 788 The judge shall equitably reduce the penalty when the principal obligation has been partly or irregularly complied with by the debtor. except that if he paid without the knowledge or against the will of the debtor. Even if there has been no performance. such as those arising from a mortgage. he can recover only insofar as the payment has been beneficial to the debtor. or penalty.789 The nullity of the penal clause does not carry with it that of the principal obligation. the penalty may also be reduced by the courts if it is iniquitous or unconscionable. 1237 793 Art. 1230 791 Art. Whoever pays for another may demand from the debtor what he has paid. The nullity of the principal obligation carries with it that of the penal clause.

The delivery of promissory notes payable to order. or when the application of payment is made by the party for whose benefit the term has been constituted. or bills of exchange or other mercantile documents shall produce the effect of payment only when they have been cashed. to which of them the same must be applied. 1. payment of the principal shall not be deemed to have been made until the interests have been covered. Unless the parties so stipulate.794 2. In the meantime. or when through the fault of the creditor they have been impaired. Dation in payment Property is alienated to the creditor in satisfaction of a debt in money. the former cannot complain of the same. then in the currency which is legal tender in the Philippines. If the debtor accepts from the creditor a receipt in which an application of the payment is made. may declare at the time of making the payment. 1252 799 Art. 1249 796 Art. Extraordinary inflation or deflation The value of the currency at the time of the establishment of the obligation shall be the basis of payment. unless there is a cause for invalidating the contract. unless there is an agreement to the contrary. 795 Art.and the debtor becomes now the vendor. application shall not be made as to debts which are not yet due.795 3. 1253 186 . the action derived from the original obligation shall be held in abeyance.796 4. 1250 797 the designation of a debt which is being paid by the debtor who has several obligations of the same kind in favor of the creditor to whom the payment is made (quoting Tolentino. If it is not possible to deliver such currency. Form of payment The payment of debts in money shall be made in the currency stipulated.798 If the debt produces interest.) 798 Art.799 794 Art. 1245 Dation in payment is governed by the law on sales because it is as if the creditor is now the vendee. Application of payment797 He who has various debts of the same kind in favor of one and the same creditor.

1258 804 Art.800 5.801 In order that the consignation of the thing due may release the obligor. 1254 801 Art.1256 802 Art. (2) He is incapacitated to receive the payment at the time it is due. shall be deemed to have been satisfied.802 Consignation shall be made by depositing the things due at the disposal of judicial authority. he refuses to give a receipt. When the payment cannot be applied. (3) Without just cause. when: (1) Creditor is absent or unknown. If the debts due are of the same nature and burden. in a proper case. 1257 803 Art. the debtor shall be released from responsibility by the consignation of the thing or sum due. and the announcement of the consignation in other cases. before whom the tender of payment shall be proved. among those due. the interested parties shall also be notified thereof. (4) Two or more persons claim the same right to collect. or does not appear at the place of payment. Tender of Payment and Consignation If the creditor to whom tender of payment has been made refuses without just cause to accept it. it must first be announced to the persons interested in the fulfillment of the obligation. (5) The title of the obligation has been lost. The consignation having been made. the payment shall be applied to all of them proportionately.803 The expenses of consignation. shall be charged against the creditor. or if application cannot be inferred from other circumstances. Consignation alone shall produce the same effect in the following cases. 1259 187 .804 800 Art. when properly made. the debt which is most onerous to the debtor.

Once the consignation has been duly made.808 When the service has become so difficult as to be manifestly beyond the contemplation of the parties. and before he has incurred in delay. 1267 188 . the obligor is liable even for fortuitous events. Loss of Determinate Thing Due or Impossibility or difficulty of performance The obligation is extinguished if it should be lost or destroyed without the fault of the debtor. the obligor may also be released therefrom. the consignation having been made. 1262 808 Art. The same rule applies when the nature of the obligation requires the assumption of risk.806 B.805 If. and he shall be responsible for damages. 1261 807 Art. the debtor may withdraw the thing or the sum deposited. When by law or stipulation.807 The debtor in obligations to do shall also be released when the prestation becomes legally or physically impossible without the fault of the obligor. the creditor should authorize the debtor to withdraw the same. allowing the obligation to remain in force. Before the creditor has accepted the consignation. or before a judicial declaration that the consignation has been properly made. the loss of the thing does not extinguish the obligation. 1260 806 Art.809 805 Art. 1266 809 Art. in whole or in part. guarantors and sureties shall be released. The co-debtors. the debtor may ask the judge to order the cancellation of the obligation. he shall lose every preference which he may have over the thing.

the obligation will be extinguished not by virtue of condonation but by waiver under Art. Express condonations and required formality thereof Express condonation shall comply with the forms of donation. 1271 813 Art. One and the other kind shall be subject to the rules which govern inofficious donations (Art. You can remit a debt even before it is due.) In this case. But note that the creditor may just refuse to collect (w/o observing any form. 1270) 811 The form of donation must be observed. implies the renunciation of the action which the former had against the latter. 3. the creditor renounces enforcement of an obligation which is extinguished.814 810 Four (4) requisites: 1. 1274 189 . It may be novation. is found in the possession of the debtor. Acceptance by the debtor 4.811 2. or of a third person who owns the thing. Condonation or remission is essentially gratuitous. in whole or in part. 2.812 Whenever the private document in which the debt appears is found in the possession of the debtor. It may be made expressly or impliedly. 812 Art. 748. If in order to nullify this waiver it should be claimed to be inofficious. apply Art. it shall be presumed that the creditor delivered it voluntarily. the mode of extinguishment may be something else. C. If renunciation is for a consideration. Renunciation must be gratuitous. compromise of dacion en pago.810 1.813 It is presumed that the accessory obligation of pledge has been remitted when the thing pledged. Condonation or Remission of Debt An act of liberality by virtue of which. If it involves immovables. without receiving any equivalent. Implied The delivery of a private document evidencing a credit. If the condonation involves movables. and requires the acceptance by the obligor. Debt that is existing. the debtor and his heirs may uphold it by proving that the delivery of the document was made in virtue of payment of the debt. made voluntarily by the creditor to the debtor. unless the contrary is proved. 749. 6. after its delivery to the creditor. Capacity of the parties. apply Art. 1272 814 Art.

815 E. 1288) If a person should have against him several debts which are susceptible of compensation. 1287) Neither shall there be compensation if one of the debts consists in civil liability arising from a penal offense (Art.816 It is necessary that: (1) Each one of the obligors be bound principally. in their own right. (4) They be liquidated and demandable. (2) Both debts consist in a sum of money.817 815 Art. (3) The two (2) debts be due. 1279 190 . are creditors and debtors of each other. or if the things due are consumable. 1278 Compensation shall not be proper when one of the debts arises from a depositum or from the obligations of a depositary or of a bailee in commodatum. 1275 816 Art. 1289) 817 Art. (5) Over neither of them there be any retention or controversy. and that he be at the same time a principal creditor of the other. without prejudice to the provisions of par. Compensation When two persons. they be of the same kind. D. the rules on the application of payments shall apply to the order of the compensation (Art. Confusion or Merger of Rights When the characters of creditor and debtor are merged in the same person. Neither can compensation be set up against a creditor who has a claim for support due by gratuitous title. and also of the same quality if the latter has been stated. 2 of Article 301 (Art. commenced by third persons and communicated in due time to the debtor.

1288 191 . the former may set it off by proving his right to said damages and the amount thereof. 1283 823 e. Arts. 1282 821 See Agreement. Agreement The parties may agree upon the compensation of debts which are not yet due. Legal compensation Compensation takes place by operation of law. but there shall be an indemnity for expenses of exchange or transportation to the place of payment. compensation takes effect by operation of law..819 b. Voluntary821 d. Facultative When compensation is claimable by only one of the parties but not of the other. supra 822 Art.818 When all the requisites mentioned above are present. 1290 820 Art. 1287. even though the debts may be payable at different places.823 818 Art.822 e. and extinguishes both debts to the concurrent amount. Kinds a. even though the creditors and debtors are not aware of the compensation.g. 1. 1286 819 Art.820 c. Judicial If one of the parties to a suit over an obligation has a claim for damages against the other.

829 The insolvency of the new debtor.826 In order that an obligation may be extinguished by another which substitute the same. Payment by the new debtor gives him the rights mentioned in articles 1236 and 1237. 1288 826 Art. or that the old and the new obligations be on every point incompatible with each other. 1291 827 Art. who has been proposed by the original debtor and accepted by the creditor. 2. 301. 2) 825 Art.825 F. If one of the debts consists in civil liability arising from a penal offense. shall not revive the action of the latter against the original 824 Art.828 If the substitution is without the knowledge or against the will of the debtor.824 c. without prejudice to the provisions of paragraph 2 of Article 301. Against a creditor who has a claim for support due by gratuitous title. 1287 Support in arrears may be compensated and renounced. Novation Obligations may be modified by: (1) Changing their object or principal conditions. but not without the consent of the creditor. 1294 192 . Obligations not compensable a. When one of the debts arises from a depositum or from the obligations of a depositary or of a bailee in commodatum. 1292 828 Art. may be made even without the knowledge or against the will of the latter. and the right to demand the same may be transmitted by onerous or gratuitous title (Art. the new debtor's insolvency or non-fulfillment of the obligations shall not give rise to any liability on the part of the original debtor. par. (2) Substituting the person of the debtor. it is imperative that it be so declared in unequivocal terms. (3) Subrogating a third person in the rights of the creditor.827 Novation which consists in substituting a new debtor in the place of the original one. 1293 829 Art. b.

pays with the express or tacit approval of the debtor.836 It is presumed that there is legal subrogation: (1) When a creditor pays another creditor who is preferred. 1300 836 Art.obligor. or known to the debtor. 1302 193 . the original one shall subsist. even without the knowledge of the debtor.834 Subrogation of a third person in the rights of the creditor is either legal or conventional. unless it is otherwise stipulated. the latter must be clearly established in order that it may take effect. The former is not presumed. accessory obligations may subsist only insofar as they may benefit third persons who did not give their consent. 1295 831 Art. 1299 835 Art. even without the debtor's knowledge. 1301 837 Art. except in cases expressly mentioned in this Code.830 When the principal obligation is extinguished in consequence of a novation. except when annulment may be claimed only by the debtor or when ratification validates acts which are voidable. 1298 834 Art. except when said insolvency was already existing and of public knowledge. 1296 832 Art. when the delegated his debt.831 If the new obligation is void.837 830 Art.832 The novation is void if the original obligation was void. unless the parties intended that the former relation should be extinguished in any event. a person interested in the fulfillment of the obligation pays.833 If the original obligation was subject to a suspensive or resolutory condition. (2) When a third person. the new obligation shall be under the same condition. (3) When.835 Conventional subrogation of a third person requires the consent of the original parties and of the third person. without prejudice to the effects of confusion as to the latter's share. not interested in the obligation. 1297 833 Art.

and he shall be preferred to the person who has been subrogated in his place in virtue of the partial payment of the same credit. subject to stipulation in a conventional subrogation. 1303 839 Art. Subrogation transfers to the persons subrogated the credit with all the rights thereto appertaining. to whom partial payment has been made. either against the debtor or against third person. be they guarantors or possessors of mortgages. 1304 194 .838 A creditor. may exercise his right for the remainder.839 838 Art.

841 certain formalities parties are bound not only prescribed by law. If the value of the personal property donated exceeds five thousand pesos (P5. specifying therein the property donated and An oral donation requires the simultaneous the value of the charges which the donee delivery of the thing or of the document must satisfy. the donation and the acceptance shall be made in writing. the for perfection. 748 195 . such to the fulfillment of what prescribed form being an has been expressly stipulated essential element but also to all consequences which.00). CONTRACTS I.840 II. representing the right donated. (3) Cause of the obligation which is established. 1381 841 like deposit. 1. Donations Movable Immovable May be made orally or in writing It must be made in a public document. pledge and commodatum 842 Art. usage and law. Essential Requisites (1) Consent of the contracting parties. according to their nature may be in keeping with good faith. the donation shall be void. (2) Object certain which is the subject matter of the contract.842 840 Art. Kinds of Contracts Consensual Real Formal or Solemn Perfected by mere consent Requires delivery of object Requires compliance with and from that moment.000. Otherwise.

The acceptance may be made in the same deed of donation or in a separate public
document, but it shall not take effect unless it is done during the lifetime of the donor.

If the acceptance is made in a separate instrument, the donor shall be notified thereof in an
authentic form, and this step shall be noted in both instruments.843

2. Partnership844 where real property contributed

A public instrument is necessary.845

There must be:

1. an inventory of said property
2. signed by the parties; and
3. attached to the public instrument.846

3. Antichresis

The amount of the principal and of the interest shall be specified in writing;
otherwise, the contract of antichresis is void.847

4. Agency to sell real property or an interest therein

The authority of the agent must be in writing; otherwise, the sale is void.848

5. Stipulation to charge interest

No interest shall be due unless it has been expressly stipulated in writing.849

843
Art. 749
844
may be constituted in any form
845
Art. 1771
846
Art. 1773; otherwise, the contract of partnership is void
847
Art. 2134
848
Art. 1874
849
Art. 1956

196

6. Stipulation limiting common carrier’s duty of extraordinary
diligence to ordinary diligence

A stipulation between the common carrier and the shipper or owner limiting the
liability of the former for the loss, destruction, or deterioration of the goods to a degree
less than extraordinary diligence shall be valid, provided it be:

(1) In writing, signed by the shipper or owner;
(2) Supported by a valuable consideration other than the service rendered by the
common carrier; and

(3) Reasonable, just and not contrary to public policy.850

7. Chattel mortgage
Personal property is recorded in the Chattel Mortgage Register as security for the
performance of an obligation.

If the movable, instead of being recorded, is delivered to the creditor or a third
person, the contract is a pledge and not a chattel mortgage.851

8. Sale of large cattle

Governed by special law852 which requires that the same be in a public instrument.

No person, partnership, association, corporation or entity shall engage in the
business of buy and sell of large cattle without first securing a permit for the said purpose
from the Provincial Commander of the province where it shall conduct such business and
the city/municipal treasurer of the place of residence of such person, partnership,
association, corporation or entity. The permit shall only be valid in such province.853

850
Art. 1744
851
Art. 2140
852
Act No. 1147
853
Sec. 5, P.D. 533

197

III. Formality

Contracts shall be obligatory, in whatever form they may have been entered into,
provided all the essential requisites for their validity are present. However, when the 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, that requirement is absolute and indispensable.
In such cases, the right of the parties stated in the following article cannot be exercised.854

If the law requires a document or other special form, the contracting parties may
compel each other to observe that form, once the contract has been perfected. This right
may be exercised simultaneously with the action upon the contract.855

The following must appear in a public document:

(1) Acts and contracts which have for their object the creation, transmission,
modification or extinguishment of real rights over immovable property; sales of real
property or of an interest therein are governed by Articles 1403, No. 2, and 1405;856

(2) The cession, repudiation or renunciation of hereditary rights or of those of the
conjugal partnership of gains;

(3) The 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 third
person;

(4) The cession of actions or rights proceeding from an act appearing in a public
document.

All other contracts where the amount involved exceeds five hundred pesos
(P500.00) must appear in writing, even a private one. But sales of goods, chattels or things
in action are governed by articles, 1403, No. 2 and 1405.857

854
Art. 1356
855
Art. 1357
856
infra
857
Art. 1358

198

IV. Defective Contracts

A. Rescissible Contracts858

(1) Those which are entered into by guardians whenever the wards whom they
represent suffer lesion by more than one-fourth of the value of the things which are the
object thereof;

(2) Those agreed upon in representation of absentees, if the latter suffer the lesion
stated in the preceding number;

(3) Those undertaken in fraud of creditors when the latter cannot in any other
manner collect the claims due them;

(4) Those which refer to things under litigation if they have been entered into by
the defendant without the knowledge and approval of the litigants or of competent judicial
authority;

(5) All other contracts specially declared by law to be subject to rescission.859

(6) Payments made in a state of insolvency on account of obligations not yet
enforceable

1. Difference with Rescission (resolution) under Art. 1191

Rescission in Article 1191 Rescission Proper in Article 1381

It is a principal action retaliatory in It is a subsidiary remedy.
character.

The only ground is non-performance of There are 5 grounds to rescind. Non-
one’s obligation/s or what is incumbent performance by the other party is not
upon him. important.

It applies only to reciprocal obligation It applies to both unilateral and reciprocal
obligations.

858
Contracts validly agreed upon but, by reason of lesion or economic prejudice may be rescinded in
cases established by law.
859
Art. 1381

199

Only a party to the contract may demand Even a 3rd person who is prejudiced by the
fulfillment or seek the rescission of the contract may demand the rescission of the
contract. contract.

B. Voidable Contracts860

Contracts entered into during a lucid interval are valid. Contracts agreed to in a
state of drunkenness or during a hypnotic spell are voidable.861

The incapacity declared in Article 1327862 is subject to the modifications determined
by law, and is understood to be without prejudice to special disqualifications established in
the laws.863

A contract where consent is given through mistake, violence, intimidation, undue
influence, or fraud is voidable.864

In order that mistake may invalidate consent, it should refer to the substance of the
thing which is the object of the contract, or to those conditions which have principally
moved one or both parties to enter into the contract.

Mistake as to the identity or qualifications of one of the parties will vitiate consent
only when such identity or qualifications have been the principal cause of the contract.

A simple mistake of account shall give rise to its correction.865

860
Art. 1409
Those in which all of the essential elements for validity are present, although the element of consent
is vitiated either by lack of capacity of one of the contracting parties or by VIMFU.
What contracts are voidable:
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
3. By loss of the thing which is the object of the contract through fraud or fault of the person who is
entitled to annul the contract.
Requisites:
a. there must be knowledge of the reason which renders the contract voidable
b. such reason must have ceased and
c. the injured party must have executed an act which expressly or impliedly conveys an intention to
waive his right.
861
Art. 1328
862
See Reference
863
Art. 1329
864
Art. 1330
865
Art. 1331

200

When one of the parties is unable to read, or if the contract is in a language not
understood by him, and mistake or fraud is alleged, the person enforcing the contract must
show that the terms thereof have been fully explained to the former.866

There is no mistake if the party alleging it knew the doubt, contingency or risk
affecting the object of the contract.867

Mutual error as to the legal effect of an agreement when the real purpose of the
parties is frustrated, may vitiate consent.868

There is violence when in order to wrest consent, serious or irresistible force is
employed.

There is intimidation when one of the contracting parties is compelled by a
reasonable and well-grounded fear of an imminent and grave evil upon his person or
property, or upon the person or property of his spouse, descendants or ascendants, to give
his consent.

To determine the degree of intimidation, the age, sex and condition of the person
shall be borne in mind.

A threat to enforce one's claim through competent authority, if the claim is just or
legal, does not vitiate consent.869

Violence or intimidation shall annul the obligation, although it may have been
employed by a third person who did not take part in the contract.870

There is undue influence when a person takes improper advantage of his power
over the will of another, depriving the latter of a reasonable freedom of choice. The
following circumstances shall be considered: the confidential, family, spiritual and other
relations between the parties, or the fact that the person alleged to have been unduly
influenced was suffering from mental weakness, or was ignorant or in financial distress.871

There is fraud when, through insidious words or machinations of one of the
contracting parties, the other is induced to enter into a contract which, without them, he
would not have agreed to.872

866
Art. 1332
867
Art. 1333
868
Art. 1334
869
Art. 1335
870
Art. 1336
871
Art. 1337
872
Art. 1338

201

Failure to disclose facts, when there is a duty to reveal them, as when the parties are
bound by confidential relations, constitutes fraud.873

The usual exaggerations in trade, when the other party had an opportunity to know
the facts, are not in themselves fraudulent.874

A mere expression of an opinion does not signify fraud, unless made by an expert
and the other party has relied on the former's special knowledge.875

Misrepresentation by a third person does not vitiate consent, unless such
misrepresentation has created substantial mistake and the same is mutual.876

Misrepresentation made in good faith is not fraudulent but may constitute error.877

In order that fraud may make a contract voidable, it should be serious and should
not have been employed by both contracting parties.

Incidental fraud only obliges the person employing it to pay damages.878

The following contracts are voidable or annullable, even though there may have
been no damage to the contracting parties:

(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.

These contracts are binding, unless they are annulled by a proper action in court.
They are susceptible of ratification.879

The action for annulment shall be brought within four (4) years.

This period shall begin:

In cases of intimidation, violence or undue influence, from the time the defect of
the consent ceases.

873
Art. 1339
874
Art. 1340
875
Art. 1341
876
Art. 1342
877
Art. 1343
878
Art. 1344
879
Art. 1390

202

In case of mistake or fraud, from the time of the discovery of the same.

And when the action refers to contracts entered into by minors or other
incapacitated persons, from the time the guardianship ceases.880

Ratification extinguishes the action to annul a voidable contract.881

Ratification may be effected expressly or tacitly. It is understood that there is a tacit
ratification if, with knowledge of the reason which renders the contract voidable and such
reason having ceased, the person who has a right to invoke it should execute an act which
necessarily implies an intention to waive his right.882

Ratification may be effected by the guardian of the incapacitated person.883

Ratification does not require the conformity of the contracting party who has no
right to bring the action for annulment.884

Ratification cleanses the contract from all its defects from the moment it was
constituted.885

The action for the annulment of contracts may be instituted by all who are thereby
obliged principally or subsidiarily. However, persons who are capable cannot allege the
incapacity of those with whom they contracted; nor can those who exerted intimidation,
violence, or undue influence, or employed fraud, or caused mistake base their action upon
these flaws of the contract.886

An obligation having been annulled, the contracting parties shall restore to each
other the things which have been the subject matter of the contract, with their fruits, and
the price with its interest, except in cases provided by law.

In obligations to render service, the value thereof shall be the basis for damages.887

When the defect of the contract consists in the incapacity of one of the parties, the
incapacitated person is not obliged to make any restitution except insofar as he has been
benefited by the thing or price received by him.888

880
Art. 1391
881
Art. 1392
882
Art. 1393
883
Art. 1394
884
Art. 1395
885
Art. 1396
886
Art. 1397
887
Art. 1398
888
Art. 1399

203

890 As long as one of the contracting parties does not restore what in virtue of the decree of annulment he is bound to return. unless said loss took place through the fraud or fault of the plaintiff. 1401 891 Art. he shall return the fruits received and the value of the thing at the time of the loss. 1400 890 Art.889 The action for annulment of contracts shall be extinguished when the thing which is the object thereof is lost through the fraud or fault of the person who has a right to institute the proceedings. the other cannot be compelled to comply with what is incumbent upon him. Whenever the person obliged by the decree of annulment to return the thing cannot do so because it has been lost through his fault. If the right of action is based upon the incapacity of any one of the contracting parties. the loss of the thing shall not be an obstacle to the success of the action. with interest from the same date. 1402 204 .891 889 Art.

unless they are ratified: (1) Those entered into in the name of another person by one who has been given no authority or legal representation. 3. or miscarriage of another. or by his agent. be in writing. not to those that are partially or completely fulfilled.00. (c) An agreement made in consideration of marriage. default or miscarriage of another. The statute of frauds applies only to executory contracts. of the agreement cannot be received without the writing. . those entered into in the name of another by one without or acting in excess of authority. Failure to object to the presentation of oral evidence to prove such contracts 2. other than a mutual promise to marry. 5. subscribed by the party charged or by his agent. (b) A special promise to answer for the debt. Agreements for the sale of real property or interest therein. the said contracts shall be unenforceable. or some note or memorandum thereof. Agreement for the sale of goods. unless the same. otherwise. Representation as to the credit of a third person. (2) Those that do not comply with the Statute of Frauds. memorandum or writing. 4. or a secondary evidence of its contents: (a) An agreement that by its terms is not to be performed within a year from the making thereof. those where both parties are incapable of giving consent. therefore. 2. etc. default. It refers rather to a collateral promise. In the following cases an agreement hereafter made shall be unenforceable by action. Agreement in consideration of marriage other than a mutual promise to marry. 6. and 3. Unenforceable Contracts892 The following contracts are unenforceable. evidence. 892 Those which cannot be enforced by proper action in court unless they are ratified What contracts are unenforceable 1.this does not refer to the original or independent promise of the debtor to his own creditor. at a price not less than P500. and subscribed by the party charged. Special promise to answer for the debt. Agreements not to be performed within one year from the making thereof. those which do not comply with the Statute of Frauds Agreements within the scope of the Statute of Frauds (exclusive list): 1. or who has acted beyond his powers. and 7. C. The contracts/agreements under the Statute of Frauds require that the same be evidenced by some note. Ratification of contracts in violation of the Statute of Frauds 1. 2. Contracts of lease for a period longer than one year. Acceptance of benefits under these contracts 205 .

or by the acceptance of benefit under them. by the person on whose behalf it has been executed.00). 1405 897 Art. A contract entered into in the name of another by one who has no authority or legal representation. 1406 If the law requires a document or other special form. 1357) 206 . unless the buyer accept and receive part of such goods and chattels. shall be unenforceable. price. once the contract has been perfected. the parties may avail themselves of the right under Article 1357.893 Unauthorized contracts are governed by Article 1317894 and the principles of 895 agency. or the evidences. or some of them. If ratification is made by the parents or guardians. chattels or things in action. of the amount and kind of property sold. 1403 894 No one may contract in the name of another without being authorized by the latter. (3) Those where both parties are incapable of giving consent to a contract. or unless he has by law a right to represent him. are ratified by the failure to object to the presentation of oral evidence to prove the same. at the time of the sale. as the case may be. as the case may be. or who has acted beyond his powers. 1404 896 Art. names of the purchasers and person on whose account the sale is made. terms of sale. or for the sale of real property or of an interest therein. (d) An agreement for the sale of goods. Contracts infringing the Statute of Frauds. but when a sale is made by auction and entry is made by the auctioneer in his sales book. referred to in No. unless it is ratified. (f) A representation as to the credit of a third person. it is a sufficient memorandum. ratification by the parent. expressly or impliedly. of one of the contracting parties shall give the contract the same effect as if only one of them were incapacitated.897 In a contract where both parties are incapable of giving consent. and a public document is necessary for its registration in the Registry of Deeds. 2 of Article 1403. express or implied. the contract shall be validated from the inception. before it is revoked by the other contracting party 895 Art. of both contracting parties. or guardian. (e) An agreement for the leasing for a longer period than one (1) year. at a price not less than five hundred pesos (P500. of such things in action or pay at the time some part of the purchase money. 893 Art. the contracting parties may compel each other to observe that form.896 When a contract is enforceable under the Statute of Frauds. This right may be exercised simultaneously with the action upon the contract (Art.

901 898 Art. expressly or impliedly. good customs. Void Contracts899 (1) Those whose cause. morals. No one may contract in the name of another without being authorized by the latter. 1409 901 Art. good customs. or who has acted beyond his powers. good customs. before it is revoked by the other contracting party.898 D. These contracts cannot be ratified.900 An absolutely simulated or fictitious contract is void. public order or public policy. (6) Those where the intention of the parties relative to the principal object of the contract cannot be ascertained. (4) Those whose object is outside the commerce of men. unless it is ratified. 1407 899 Those where all of the requisites of a contract are present but the cause. when it does not prejudice a third person and is not intended for any purpose contrary to law. object or purpose is contrary to law. (2) Those which are absolutely simulated or fictitious. or unless he has by law a right to represent him. A contract entered into in the name of another by one who has no authority or legal representation. 1346 207 . (7) Those expressly prohibited or declared void by law. (3) Those whose cause or object did not exist at the time of the transaction. A relative simulation. (5) Those which contemplate an impossible service. morals. public order or public policy binds the parties to their real agreement. or contract itself is prohibited or declared void by law. Neither can the right to set up the defense of illegality be waived. shall be unenforceable. by the person on whose behalf it has been executed. 900 Art. morals. public order or public policy. object or purpose is contrary to law.

1 or 3902 of Article 1403 may prescribe 4. Not cured by Cured by Cured by Not cured by prescription prescription prescription prescription 5. if there inexistence or annulability may was total or partial defense of nullity prescribe performance of or inexistence the unenforceable does not prescribe contract under No. Comparative table of defective contracts Void Voidable Rescissible Unenforceable 1. Assailed not Assailed only by a Assailed not only by Assailed only by a only by a contracting party a contracting party contracting party contracting party but even by a third 902 supra 208 . or or illegality parties of to a 3rd capacity of both person parties not cured by prescription 2. Do not. Cannot be Can be ratified Need not be ratified Can be ratified ratified 6. as a Valid and Valid and Cannot be general rule enforceable until enforceable until enforced by a produce any legal they are annulled by they are rescinded by proper action in effect a competent court a competent court court 3. Defect is Defect is caused by Defect is caused by Defect is caused caused by lack of vice of consent injury/ damage by lack of form. essential elements either to one of the authority. Action for the Action for Action for rescission Corresponding declaration or annulment or may prescribe action for nullity or defense of recovery.

Any stipulation to the contrary is null and void.903 3. This stipulation is void. Assailed directly Assailed directly or Assailed directly only Assailed directly or or collaterally collaterally collaterally 1. Pactum de non alienando A stipulation forbidding the owner from alienating the immovable mortgaged. it is a stipulation in a contract of mortgage of pledge which provides that the mortgagee will automatically own the property mortgaged in case the mortgagor fails to pay the loan. 2130 904 Art. Simply put. or dispose of them.but even by a person who is third person prejudiced or whose interest is damaged by the directly affected contract 7. Pactum leonina A stipulation which excludes one or more partners from any share in the profits or losses. 1799 209 . 2. Pactum commissorium It can be found in Article 2088 of the civil code which provides: The creditor cannot appropriate the things given by way of pledge or mortgage.904 903 Art.

The contracting parties must have clearly and deliberately conferred a favor upon a third person. 1311 210 .V. If a contract should contain some stipulation in favor of a third person.905 905 Art. except in case where the rights and obligations arising from the contract are not transmissible by their nature. Effect of Contracts Contracts take effect only between the parties. The heir is not liable beyond the value of the property he received from the decedent. their assigns and heirs. or by stipulation or by provision of law. he may demand its fulfillment provided he communicated his acceptance to the obligor before its revocation. A mere incidental benefit or interest of a person is not sufficient.

907 Art. A contract of sale may be absolute or conditional. recording laws. (3) Purchases made in a merchant's store. Nothing in this Title. It is clear that the two elements cannot be dissociated. Delivery and payment in a contract of sale are so interrelated and intertwined with each other that without delivery of the goods there is no corresponding obligation to pay. for the contract of purchase and sale is essentially a bilateral contract. 1470 211 . or in fairs. Compania Maritima. or that the parties really intended a donation or some other act or contract. as it gives rise to reciprocal obligations. it is perfected by mere consent. in accordance with the Code of Commerce and special laws. Essential Requisites of a Contract of Sale Subject to the provisions of this Title. The two complement each other. however. and the other to pay therefor a price certain in money or its equivalent. Inc. or markets. where goods are sold by a person who is not the owner thereof.909 906 A nominate contract whereby one of the contracting parties obligates himself to transfer the ownership of and to deliver a determinate thing and the other to pay therefor a price certain in money or its equivalent. Neither is the delivery of the thing bought nor the payment of the price necessary for the perfection of the contract of sale.908 B. Definition of Sales By the contract of sale one of the contracting parties obligates himself to transfer the ownership and to deliver a determinate thing. vs. (Pio Barretto Sons. and who does not sell them under authority or with the consent of the owner. shall affect: (1) The provisions of any factors' act. unless the owner of the goods is by his conduct precluded from denying the seller's authority to sell. (2) The validity of any contract of sale under statutory power of sale or under the order of a court of competent jurisdiction. Being consensual. except as it may indicate a defect in the consent. the buyer acquires no better title to the goods than the seller had. 1458 908 Art. or any other provision of law enabling the apparent owner of goods to dispose of them as if he were the true owner thereof. SALES906 I. 62 SCRA 167).907 Gross inadequacy of price does not affect a contract of sale. Introduction A.

Bilateral . or has promised to deliver the same thing to two or more persons who do not have the same interest. C. unlike accessory contract 2. 1165 913 obligation of seller – transfer ownership & deliver obligation of buyer – pay price Consequence: power to rescind is implied in bilateral contracts 914 Test: subjective – as long as parties believe in all honesty that he is receiving equal value then it complies with the test & would not be deemed a donation. Nominate .with valuable consideration 7. negligence. Consummation D. Characteristics of a Contract of Sale 1. performance may be demanded910 3.912 E.911 may compel the debtor to make the delivery. Inadequacy of price or aleatory character not sufficient ground to cancel contract of sale. Inadequacy can show vitiation of consent & sale may be annulled based on vice but not on inadequacy 212 . Commutative . he shall be responsible for any fortuitous event until he has effected the delivery.meeting of minds makes a perfect contract of sale but needs delivery to consummate. the creditor.can stand on its own. Negotiation 2.law gave it a name 5.imposes obligation on both parties913 4. Consensual . 3. and those who in any manner contravene the tenor thereof. it is a mode w/c actually transfers ownership 909 Art.with valuable consideration914 6. 912 Art. Obligations Created When what is to be delivered is a determinate thing. Principal . Title & not a mode – title gives rise to an obligation to transfer. 1505 910 specific performance 911 Those who in the performance of their obligations are guilty of fraud. If the obligor delays. are liable for damages. in addition to the right granted him by Article 1170. Onerous . he may ask that the obligation be complied with at the expense of the debtor. If the thing is indeterminate or generic. but must not be absurd. Perfection – by mere consent. or delay. Stages of Contract of Sale 1.

Sale Distinguished From Other Contracts Donation Sale Gratuitous Onerous Formal contract Consensual Governed by law on donation Governed by law on sales Barter915 Sale The consideration is the giving of a it is giving of money as payment thing Both are governed by law on sales. The contact transfers no real rights. G. it merely causes certain obligations to arise. If intention is not clear916 Value of thing is more than amount Value of thing is equal or less than of money amount of money 915 The only point difference between contract of sale and barter is in the element which is present in sale but not in barter. F. 1468 213 . Sale is Title and Not Mode The contract of sale by itself is not a mode of acquiring ownership. namely: price certain in money or its equivalent 916 Art. both are species of the genus sales If consideration consists party in money & partly by thing – look at manifest intention.

even if the order had not been given The services dominate the contract The primary objective of the even though there is a sale of goods contract is a sale of the involved manufactured item. it is a sale of goods even though the item is manufactured by labor furnished by the seller and upon previous order of the customer Not within the Statute of Frauds Within the Statute of Frauds Agency to sell Sale Agent not obliged to pay for price. essence is object – contract of sale b. Contract for piece of work917 Sale Goods are to be manufactured Contract for delivery of an article specially for a customer and upon which the vendor in the ordinary special order and not for the general course of business manufactures or market procures for general market918 The thing transferred is one not in The thing transferred is one which existence and which never would would have existed and would have have existed but for the order of the been the subject of sale to some party desiring to acquire it other person. Principal remains owner even if Buyer becomes owner of thing object delivered to agent Agent assumes no risk/liability as Seller warrants long as within the authority given 917 Art. 1467 Main factor in decision of the SC: essence of why parties enter into it: a. essence is service – contract for piece of work 918 whether on hand or not 214 . Buyer pays for price of object merely obliged to deliver price received from buyer.

May be revoked unilaterally because Not unilaterally revocable fiduciary & even if revoked w/o ground Agent not allowed to profit Seller receives profit A personal contract A real contract919 Agent receives the goods as goods Buyer receives the goods as owner of the principal who retains his ownership over them Agent delivers the price which in Buyer pays the price turn he got from his buyer Agent can return the goods in case Buyer. must act and is bound he pleases being the owner according to the instructions of the principal 919 to give 215 . as a general rule. cannot he is unable to sell the same to a return the object sold third person Agent makes no warranty for which Seller warrants the thing sold he assumes personal liability as long as he acts within his authority and in the name of the seller Agent in dealing with the thing Buyer can deal with the thing sold as received.

it is a sale by installments Dation in Payment920 Sale Pre-existing credit No pre-existing credit Obligations are extinguished Obligations are created Consideration of the debtor is the Consideration on the part of the extinguishment of the debt. The payment is received by the Buyer still has to pay the price debtor before the contract is perfected. on the seller is the price. it is the the buyer is the acquisition of the acquisition of the object offered in object lieu of the original credit Less Freedom in determining the Greater freedom in determining price the price. 920 A contract where property is alienated to satisfy/extinguish obligation to pay debt Novates creditor-debtor relationship into seller-buyer Delivery is required (real contract) 216 . on the part of part of the creditor. Lease Sale Use of thing is for a specified Obligation to absolutely transfer period only with an obligation to ownership of thing return Consideration is rent Consideration is price Lessor need not be owner Seller needs to be owner of thing to transfer ownership Lease with option to buy: really a contract of sale but designated as lease in name only.

CA [1988]) 217 . Title passes to the buyer upon Ownership is reserved in the seller delivery of the thing sold and is not to pass until full payment of the purchase price Non-payment of the price is a Full payment is a positive suspensive negative resolutory condition and condition. (Dignos vs. the failure of which is not the remedy of the seller is to exact a breach – casual or serious but fulfilment or to rescind the contract simply prevents the obligation of the vendor to convey title from having binding force Vendor loses and cannot recover Title remains in the vendor if the ownership of the thing sold and vendee does not comply with the delivered until the contract of sale is condition precedent of making resolved and set aside payment at the time specified in the contract 921 Absent a proviso in the contract that the title to the property is reserved in the vendor until full payment of the purchase price or a stipulation giving the vendor the right to unilaterally rescind the contract the moment the vendee fails to pay within the fixed period. the transaction is an absolute contract of sale and not a contract to sell. H. while expressly to transfer the ownership and to reserving the ownership of the deliver a determinate thing. and the subject property despite delivery other to pay therefor a price certain thereof to the prospective buyer in money or its equivalent. that is. full payment of the purchase price. Contract of Sale/Contract to Sell Contract of Sale Contract to sell921 A contract whereby one of the A bilateral contract whereby the contracting parties obligates himself prospective seller. binds himself to sell the said property exclusively to the prospective buyer upon fulfillment of the condition agreed upon.

this provision shall apply to judges and government experts who. even at a public or judicial auction. clothing and medical attendance. trade or vocation. the property and rights in litigation or levied upon an execution before the court within whose jurisdiction or territory they exercise their respective functions. the property of the estate under administration.924 922 Refers to Art. according to the social position of the family. clerks of superior and inferior courts. the property of the person or persons who may be under his guardianship. (4) Public officers and employees. 923 The following persons cannot acquire by purchase. (5) Justices. dwelling. Parties to a Contract of Sale A. take part in the sale. prosecuting attorneys. The prohibitions in the two preceding articles are applicable to sales in legal redemption. or of any government-owned or controlled corporation. with modifications. (3) Executors and administrators. he must pay a reasonable price therefor. the administration of which has been intrusted to them. Where necessaries922 are those sold and delivered to a minor or other person without capacity to act.II. judges. 290 which provides: Support is everything that is indispensable for sustenance. in any manner whatsoever. or institution. either in person or through the mediation of another: (1) The guardian. compromises and renunciations. even beyond the age of majority. may enter into a contract of sale. 1489 924 Art. (6) Any others specially disqualified by law. 1491 218 . and other officers and employees connected with the administration of justice. (2) Agents. Capacity of parties All persons who are authorized by law to obligate themselves. this prohibition includes the act of acquiring by assignment and shall apply to lawyers. Support also includes the education of the person entitled to be supported until he completes his education or training for some profession. the property whose administration or sale may have been intrusted to them. 923 Art. the property of the State or of any subdivision thereof. with respect to the property and rights which may be the object of any litigation in which they may take part by virtue of their profession. unless the consent of the principal has been given.

929 925 Art. B. 1327 926 Art.928 D. Special disqualifications The prohibitions are applicable to sales in legal redemption. and deaf-mutes who do not know how to write925 The action for the annulment of contracts may be instituted by all who are thereby obliged principally or subsidiarily. or caused mistake base their action upon these flaws of the contract. or employed fraud. compromises and renunciations. Absolute incapacity The following cannot give consent to a contract: (1) Unemancipated minors. or undue influence. violence. the incapacitated person is not obliged to make any restitution except insofar as he has been benefited by the thing or price received by him. However. 1399 928 Art. except: (1) When separation of property was agreed upon in the marriage settlements: or (2) When there has been a judicial separation of property between the spouses. (2) Insane or demented persons. nor can those who exerted intimidation. 1492 219 . 1490 929 Art.926 When the defect of the contract consists in the incapacity of one of the parties. persons who are capable cannot allege the incapacity of those with whom they contracted.927 C. 1397 927 Art. Relative incapacity: Married Persons The husband and the wife cannot sell property to each other.

Subject Matter A.931 Things having a potential existence may be the object of the contract of sale. weight or measure of the goods in the mass. the thing is capable of being made determinate without the necessity of a new or further agreement between the parties. 1459 931 Art. or goods to be manufactured.III. 1464 220 . weight or measure of the goods in the mass.934 In the case of fungible goods. unless a contrary intent appears.933 The sole owner of a thing may sell an undivided interest therein. The requisite that a thing be determinate is satisfied if at the time the contract is entered into. The sale of a vain hope or expectancy is void. and though the number. owned or possessed by the seller. 1460 932 Art. the buyer becomes the owner of the whole mass and the seller is bound to make good the deficiency from goods of the same kind and quality. weight or measure bought bears to the number.932 The goods which form the subject of a contract of sale may be either existing goods. If the mass contains less than the number. weight or measure bought. in this Title called "future goods. weight or measure of the mass. By such a sale the buyer becomes owner in common of such a share of the mass as the number. weight or measure of the goods in the mass is undetermined. though the seller purports to sell and the buyer to buy a definite number. Requisites of a valid subject matter The thing must be licit and the vendor must have a right to transfer the ownership thereof at the time it is delivered.930 A thing is determinate when it is particularly designated or physical segregated from all others of the same class. there may be a sale of an undivided share of a specific mass. 1461 933 Art. raised. 1462 934 Art. 1463 935 Art. The efficacy of the sale of a mere hope or expectancy is deemed subject to the condition that the thing will come into existence.935 930 Art. whose acquisition by the seller depends upon a contingency which may or may not happen. and though the number." There may be a contract of sale of goods. or acquired by the seller after the perfection of the contract of sale.

1459 221 . 1505 944 Art.936 B. 1463 & 1464 940 Arts. Things subject to a resolutory condition941 IV." There may be a contract of sale of goods. Things subject to a resolutory condition may be the object of the contract of sale. 1246 & 1409 938 Art. owned or possessed by the seller. 1462 943 Art. the buyer acquires no better title to the goods than the seller had.944 936 Art.943 The thing must be licit and the vendor must have a right to transfer the ownership thereof at the time it is delivered. Sale by a person not the owner at time of delivery The goods which form the subject of a contract of sale may be either existing goods.942 Where goods are sold by a person who is not the owner thereof. whose acquisition by the seller depends upon a contingency which may or may not happen. 1465 942 Art. or acquired by the seller after the perfection of the contract of sale. called "future goods. raised. Obligations of the Seller to Transfer Ownership A. and who does not sell them under authority or with the consent of the owner. or goods to be manufactured. 1381 & 1385 941 Art. 1465 937 see Arts. Sale of undivided interest or share939 4. 1462 939 Arts. unless the owner of the goods is by his conduct precluded from denying the seller's authority to sell. Sale of things in litigation940 5. Generic things937 2. Future Goods938 3. Particular kinds 1.

or markets. or that the determination thereof be left to the judgment of a special person or persons. 559 948 The sum stipulated as the equivalent of the thing sold and also every incident taken into consideration for the fixing of the price.947 V. Sale by a person having a voidable title Where the seller of goods has a voidable title thereto. but his title has not been avoided at the time of the sale. the contract shall be inefficacious. Exceptions (1) The provisions of any factors' act. Nevertheless. (3) Purchases made in a merchant's store. or any other provision of law enabling the apparent owner of goods to dispose of them as if he were the true owner thereof. Meaning of price The sum stipulated as the equivalent of the thing sold and also every incident taken into consideration for the fixing of the price. (2) The validity of any contract of sale under statutory power of sale or under the order of a court of competent jurisdiction. 945 Art. it shall be sufficient that it be so with reference to another thing certain. may recover it from the person in possession of the same. Price948 A.945 B. If the possessor of a movable lost or which the owner has been unlawfully deprived. 1. 1506 947 Art. 222 . the buyer acquires a good title to the goods. one who has lost any movable or has been unlawfully deprived thereof. In order that the price may be considered certain. in accordance with the Code of Commerce and special laws. put to the debit of the vendee and agreed to by him. has acquired it in good faith at a public sale. recording laws. put to the debit of the vendee and agreed to by him. the owner cannot obtain its return without reimbursing the price paid therefor. for value. 1505 946 Art. or in fairs. provided he buys them in good faith. Should such person or persons be unable or unwilling to fix it. and without notice of the seller's defect of title. unless the parties subsequently agree upon the price.946 The possession of movable property acquired in good faith is equivalent to a title.

951 The price of securities.950 If the price is simulated. grain. or in such exchange or market. If the third person or persons acted in bad faith or by mistake. as the case may be. liquids. or in a particular exchange or market.953 Where the price cannot be determined. but the act may be shown to have been in reality a donation. 1471 952 Art. when the price fixed is that which the thing sold would have on a definite day. However. 1474 223 . if the price fixed by one of the parties is accepted by the other.954 949 Art. if the thing or any part thereof has been delivered to and appropriated by the buyer he must pay a reasonable price therefor.949 Gross inadequacy of price does not affect a contract of sale. However. 1472 953 Art.952 The fixing of the price can never be left to the discretion of one of the contracting parties. except as it may indicate a defect in the consent. the sale is void. or that the parties really intended a donation or some other act or contract. the sale is perfected. 1469 950 Art. provided said amount be certain. Where such third person or persons are prevented from fixing the price or terms by fault of the seller or the buyer. the contract is inefficacious. the party not in fault may have such remedies against the party in fault as are allowed the seller or the buyer. 1470 951 Art. or when an amount is fixed above or below the price on such day. 1473 954 Art. What is a reasonable price is a question of fact dependent on the circumstances of each particular case. or in any other manner. the courts may fix the price. or some other act or contract. and other things shall also be considered certain.

955 Real 1. Must be in money or its equivalent 3. presumed to have valuable consideration Nominal consideration w/c is common law concept does not apply (P1. suspensive condition does not happen yet – courts have no jurisdiction b.VOID If False/simulated: what appears in contract is not the true price a. contract of sale is inefficacious However. or when an amount is fixed above or below the price on such day. Manner of payment provided for C. Where contract executory The contract is inefficacious 2. when SM delivered. Determination be left to judgment of specified person/s If contract states that price is to be determined by 3rd party. Requisites for a valid price 1. Must be certain or ascertainable956 at the time of the perfection of the contract 4. Where the thing has been delivered to and appropriated by the buyer The buyer must pay a reasonable price therefore 224 . or in a particular exchange or market. buyer must pay reasonable rice therefore – court can fix price 957 Effect of Failure to determine price: 1.00) 956 1. Valid if there is true consideration b. When price stated is one intended by parties If fictitious: no intention with respect to price . enforceable contract have not yet arisen – court with no jurisdiction to create contract between parties Result: inefficacious When price cannot be determined in accordance with any of the preceding rules. Must be real955 2. Void but if none (because it is fictitious) 2. B.Sufficient that it is fixed with reference to another thing certain That thing will have on a definite day. How price is determined957 It is not necessary that the certainty of the price be actual or determined at the time of the execution of the contract. or in such exchange or market provided said amount be certain 2. Valuable When not valuable – Void When contract is onerous. contract is already perfected (there is just a suspensive condition – actual fixing of price) 3rd party fixes price in bad faith or mistake – court remedy can be made 3rd party is unable or unwilling to fix price – parties have no cause of action Reason: a.

However if the price fixed by one of the parties is accepted by the other. Rescissible contracts due to lesion c. unless there has been fraud. the sale is perfected. 1472. when the price fixed is that which the thing sold would have on a definite day. or in such exchange or market. or when an amount is fixed above or below the price on such day. 1470 Gross inadequacy of price in ordinary sale does not render contract void unless it is shocking to conscience of man. Inadequacy of price Lesion or inadequacy of cause does not invalidate a contract. What is a reasonable price is a question of fact dependent on the circumstances of each particular case. mistake or undue influence. Judicial sale Shocking to conscience of man Higher price can be obtained at re-sale b. if the thing or any part thereof has been delivered to and appropriated by the buyer. When no price agreed The contract is inefficacious. 1355 961 Art. except as it may indicate a defect in the consent.961 E. or in a particular exchange or market. he must pay a reasonable price therefor. If the parties have fixed or agreed upon a definite amount. However. 959 The price of securities. or that the parties really intended a donation or some other act or contract. provided said amount be certain. The price is certain in the following cases: 1. 960 Art. liquids. If the determination of the price is left to the judgment of a specified person or persons even before such determination 4.959 NCC D.958 2. and other things shall also be considered certain. 1474 225 .962 958 The fixing of the price can never be left to the discretion of one of the contracting parties. Sales with right to repurchase (raises presumption of equitable mortgage) – Remedy is reformation 962 Art. In the cases provided under Art. grain. Except: a. If it be certain with reference to another thing certain 3.960 Gross inadequacy of price does not affect a contract of sale.

Manner of payment must be agreed upon Deemed to be an essential requisite because it is part of the presentation of the contract. Earnest money964 vs. an action for In case of non-payment.965 Earnest money Option money Title passes to the buyer upon delivery of the Ownership is reserved to the seller and is not thing sold to pass until full payment In case of non-payment. and given to the seller to bind the bargain. option money Whenever earnest money is given in a contract of sale. there can be action specific performance or for rescission can be for specific performance filed by the injured party Part of the purchase price Money given as a distinct consideration for an option contract When given. it shall be considered as part of the price and as proof of the perfection of the contract. It is considered as: a) part of the purchase price b) proof of perfection of the contract 965 Art. the buyer is bound to pay the The would-be buyer is not required to buy balance Given when there is already a sale Applies to a sale not yet perfected 963 Integral part of concept of price If there is failure to meet minds as regards term of payment: cash basis Must be certain or at least ascertainable Effect if absent: no contract situation 964 or “Arras” is something of value to show that the buyer was really in earnest. 1482 226 .963 G. F.

1324 227 . Formation of Contract of Sale966 A. as something paid or promised. except when the option is founded upon a consideration. Consummation – parties perform their respective undertakings 967 Art. Option Contract968 A promise to buy and sell a determinate thing for a price certain is reciprocally demandable. In an option to buy. Offer The contract of sale is perfected at the moment there is a meeting of minds upon the thing which is the object of the contract and upon the price. An accepted unilateral promise to buy or to sell a determinate thing for a price certain is binding upon the promisor if the promise is supported by a consideration distinct from the price. 1479 970 Art. time parties indicate their interest but no concurrence of offer & acceptance 2.VI.967 2. Policitacion/negotiation Stage – offer is floated. the only importance of the consideration for an option is that the option cannot be withdrawn by the grantor after acceptance. In view of the ruling of the Supreme Court. 969 Art. An option without consideration is void and the effect is the same as if there was no option However. the parties may reciprocally demand performance. Perfection – concurrence of all requisites. for which he has paid a consideration. applying Art. which gives him the right to buy certain merchandise.970 966 3 Stages in life of a contract of sale 1. the party who has an option may validly and effectively exercise his right by merely notifying the owner of the former’s decision to buy and expressing his readiness to pay the stipulated price. Rigos (1972). the offer may be withdrawn at any time before acceptance by communicating such withdrawal. subject to the provisions of the law governing the form of contracts. the moment it was accepted. at a fixed price. meeting of the minds 3. 1475 968 A contract granting a privilege in one person. acceptance is floated but they do not meet. Preparatory 1. in Sanchez vs.969 When the offerer has allowed the offeree a certain period to accept. at anytime within the agreed period. 1324 of the NCC. even though the option was not supported by a consideration. From that moment. a perfected contract of sale resulted.

al. Inc vs. 3. 111538. February 26. under the same terms as offered to the optionee. and which is in violation of the right of first refusal granted to the optionee is not voidable under the Statute of Frauds. A deed of sale executed in favor of a third party who cannot be deemed a purchaser in good faith. Mutual Promise to Buy and Sell973 One party accepts the other’s promise to buy and the latter.972 Option contract Right of first refusal Principal contract. stands on its own Accessory. the former’s promise to sell a determinate thing for a price certain It is reciprocally demandable It requires no consideration distinct from the selling price 971 Guzman Bocaling & Co. Only after the optionee fails to exercise its right of first priority under the same terms and within the period contemplated could the owner validly offer to sell the property to a third person. 1997 973 This is as good as a perfected sale. et. No title of dominion is transferred as yet. 2002 972 Paranaque Kings Enterprises. the parties being given only the right to demand fulfillment or damages 228 . Bonnavie. GR No. April 5. Right of First Refusal It is a right of first priority all things and conditions being equal. cannot stand on its own Needs separate consideration Does not need separate consideration Subject matter & price must be valid There must be subject matter but price not important Not conditional Conditional Not subject to specific performance Subject to specific performance 4. vs. CA.971 The basis of the right of first refusal must be the current offer to sell of the seller or offer to purchase of any prospective buyer. with optionee to enjoy the right of first priority. CA. there should be identity of the terms and conditions to be offered to the optionee and all other prospective buyers. 117355. GR No. again. vs. Riviera Filipina. such contract is valid but rescissible. Inc.

anything that refers to price is material b. small items are insignificant. even if neither is delivered. The offer must be certain and the acceptance absolute. when acceptance sent by mail. The terms and conditions of payment are merely accidental. perfected when auctioneer announces its perfection by the fall of the hammer or in other customary manner may impose terms under bidder may retract his bid. becomes perfected only upon happening of condition In sales at auction. perfection is deemed where the offer is made Performance has nothing to do with perfection stage 976 Art. not essential elements of the contract of sale except where the parties themselves stipulate that in addition to the subject-matter and the price. owner of property sold at auction may impose terms under w/c the auction will proceed & it shall be binding w/n the bidders are aware Place of perfection: where the meeting of minds happen. and the advertiser is not bound to accept the highest or lowest bidder. 1326 229 . in such a case. is presumed to have been entered into in the place where the offer was made.976 Unless it appears otherwise. unless the contrary appears. B. they are essential or material to the contract. A qualified acceptance constitutes a counter-offer. does not make acceptable unconditional When sale is subject to suspensive condition. Perfection974 Consent is manifested by the meeting of the offer and the acceptance upon the thing and the cause which are to constitute the contract. 975 Meeting of Minds: 1.978 974 Sale is a consensual contract. with damages in either case) Exception: When the sale is subject to a suspensive condition by virtue of law or stipulation. 1319 977 Art. 1325 978 Art. The contract. but mere invitations to make an offer. business advertisements of things for sale are not definite offers. delivery and payment are not essential for its perfection General rule: It is perfected at the moment there is meeting of the minds upon a determinate thing (object). Acceptance – absolute Qualified acceptance – merely a counter-offer which needs to be absolutely accepted to give rise to perfected contract of sale Business ads are mere invitations to make an offer except when it appears to be otherwise Acceptance by letter/telegram – binds only at time it came to knowledge of SELLER.975 Acceptance made by letter or telegram does not bind the offerer except from the time it came to his knowledge. hence.977 Advertisements for bidders are simply invitations to make proposals. prior thereto – offer may still be withdrawn Must be exact terms to be considered absolute When deviations allowed: a. no perfected contract of sale yet. and a certain price (consideration). A choice between rescission and fulfilment. Offer – certain 2.

1403 (d) (e) 981 Art. Sale of real property or an interest therein 3.982 or in any other manner signifying an agreement that the possession is transferred from the vendor to the vendee. when it is placed in the control and possession of the vendee. Exceptions: In order to be enforceable by action. subject to the provisions of the law governing the form of contracts. Transfer of Ownership A. 979 Art. 1496 984 Art. Formalities of the Contract General rule: Sale is a consensual contract and is perfected by mere consent. if from the deed the contrary does not appear or cannot clearly be inferred. the parties may reciprocally demand performance.981 The ownership of the thing sold is acquired by the vendee from the moment it is delivered to him in any of the ways specified in Articles 1497 to 1501. The contract of sale is perfected at the moment there is a meeting of minds upon the thing which is the object of the contract and upon the price.980 4. Manner of Transfer The ownership of the thing sold shall be transferred to the vendee upon the actual or constructive delivery thereof. Sale of personal property at a price not less than P500 2. “Applicable statute” requires that the contract of sale be in a certain form VII. the following must be in writing: 1. 1475 980 Art.984 When the sale is made through a public instrument. From that moment. 1477 982 See Reference 983 Art. the execution thereof shall be equivalent to the delivery of the thing which is the object of the contract.983 The thing sold shall be understood as delivered. 1497 230 . Sale of property not to be performed within a year from the date thereof.979 C.

Implied reservation of ownership989 C. or if the latter already had it in his possession for any other reason. With regard to movable property.986 There may also be tradition constitutum possessorium. if the thing sold cannot be transferred to the possession of the vendee at the time of the sale. approval or satisfaction 2. 1499 987 Art. with the vendor's consent. 1500 988 Art.991 985 Art. shall be understood as a delivery. 1498 986 Art. Kinds of delivery Actual or real Legal or Quasi-tradition Tradition by constructive990 operation of law Placing the thing Delivery is Delivery of rights. 1503 990 Three things before ownership may be transferred: 1. In any other case wherein said provisions are not applicable. Sale on trial. made by: the buyer indicative thereof a. The seller must have control over the thing 2. under the control represented by other credits or incorporeal and possession of signs or acts property.988 B. 3. When delivery does not transfer title Instances where Seller is still the Owner despite Delivery: 1. placing titles of Delivery by the ownership in the execution of a public hands of buyer instrument. its delivery may also be made by the delivery of the keys of the place or depository where it is stored or kept.987 With respect to incorporeal property. 1501 989 Art. The buyer must be put under control 3. There must be the intention to deliver the thing for purposes of ownership 231 . the placing of the titles of ownership in the possession of the vendee or the use by the vendee of his rights.985 The delivery of movable property may likewise be made by the mere consent or agreement of the contracting parties. the provisions of the first paragraph of article 1498 shall govern. Contrary intention appears by the term of the contract.

traditio constitutum possessorium – seller continues in possession but under a different title other than ownership. 10 Sept.to make use of rights effect delivery. allowing buyer to a. traditio longa manu – seller pointing out to the buyer the things which are transferred. the parties make use of a token or symbol to represent the thing delivered b. c. d. b. which at the time must be in sight. Cruz. 2003) 232 . traditio brevi manu – buyer simply continues in possession of the thing but under title of ownership. 991 Gives rise only to a prima facie presumption of delivery which is destroyed when actual delivery is not effected because of a legal impediment (Ten Forty Realty vs. traditio symbolica .

lease. 3. mortgage. 2. they must be bought from the same or immediate seller. said official shall advise the party in interest in writing of the ground or grounds for his refusal. Real Property a. Requisites for registration of deed of sale in good faith No deed. two or more buyers who are at odds over the rightful ownership of the subject matter must represent conflicting interests. the Register of Deeds shall forthwith record the instrument in the manner provided herein. after the same shall have been entered in the Primary Entry Book. conveyance. and the latter may appeal the matter to the Commissioner of Land Registration in accordance with the provisions of 992 Requisites: 1. on the face of the instrument. The recording of the deed and other instruments relating to unregistered lands shall be effected by any of annotation on the space provided therefor in the Registration Book. first registrant in good faith b. it appears that it is sufficient in law. the second buyer must not only show prior recording of his deed but must have acted in good faith. the entry number. they must pertain exactly to the same object or subject matter. among other particulars. Property Registration Decree 1. (b) If. the date. or other voluntary instrument affecting land not registered under the Torrens system shall be valid. unless such instrument shall have been recorded in the manner herein prescribed in the office of the Register of Deeds for the province or city where the land lies. the names of the parties. Personal Property a. two or more transactions must constitute valid sales. The Primary Entry Book shall contain. person with oldest title in good faith993 E. Double Sales992 Rules of preference: 1. In case the Register of Deeds refuses its administration to record. the nature of the document. except as between the parties thereto. without knowledge of the existence of another alienation by the vendor to another 233 . hour and minute it was presented and received. 993 Art. 1544 To be entitled to priority. first possessor in good faith c. (a) The Register of Deeds for each province or city shall keep a Primary Entry Book and a Registration Book. D. first possessor in good faith 2. AND 4.

Risk of Loss A. the obligation shall be extinguished. with indemnity for damages in either case. the impairment is to be borne by the creditor. returning to the registrant or person in interest the duplicate of the instrument. P. It shall be understood that any recording made under this section shall be without prejudice to a third party with a better right. adverse claim and other instruments in the nature of involuntary dealings with respect to unregistered lands. loss or deterioration of the thing during the pendency of the condition: (1) If the thing is lost without the fault of the debtor.995 VIII. or goes out of commerce. he shall collect the same amount of fees prescribed for similar services for the registration of deeds or instruments concerning registered lands. Accompanied by vendors duplicate certificate of title. he shall be obliged to pay damages. the file number and the date as well as the hour and minute when the document was received for recording as shown in the Primary Entry Book. attachment and levy. shall likewise be admissible to record under this section. upon the original of the recorded instruments.994 2. or disappears in such a way that its existence is unknown or it cannot be recovered. and documentary tax registration fees For the services to be rendered by the Register of Deeds. (d) Tax sale. the creditor may choose between the rescission of the obligation and its fulfillment. 113.D. certifying that he has recorded the instrument after reserving one copy thereof to be furnished the provincial or city assessor as required by existing law. 994 Sec. (2) If the thing is lost through the fault of the debtor. 1529 995 ibid 234 . payment of capital gains tax. (3) When the thing deteriorates without the fault of the debtor.Section 117 of this Decree. notice of lis pendens. (4) If it deteriorates through the fault of the debtor. with appropriate annotation. (c) After recording on the Record Book. if made in the form sufficient in law. it is understood that the thing is lost when it perishes. General rule The following rules shall be observed in case of the improvement. the Register of Deeds shall endorse among other things.

When loss occurred before perfection Seller bears the loss. 1263 998 Contract is void or inexistent. or (2) As valid in all of the existing goods or in so much thereof as have not deteriorated. the improvement shall inure to the benefit of the creditor. the buyer may at his option treat the sale: (1) As avoided.996 In an obligation to deliver a generic thing.1000 996 Art. if the sale was divisible.999 Where the parties purport a sale of specific goods. 999 Art. But if the thing should have been lost in part only. 1493 1000 Art. (6) If it is improved at the expense of the debtor. 1494 235 . he shall have no other right than that granted to the usufructuary. When loss occurred at time of perfection998 If at the time the contract of sale is perfected. (5) If the thing is improved by its nature. and the goods without the knowledge of the seller have perished in part or have wholly or in a material part so deteriorated in quality as to be substantially changed in character. and as binding the buyer to pay the agreed price for the goods in which the ownership will pass.997 B. the contract shall be without any effect. the vendee may choose between withdrawing from the contract and demanding the remaining part. paying its price in proportion to the total sum agreed upon. C. the thing which is the object of the contract has been entirely lost. the loss or destruction of anything of the same kind does not extinguish the obligation. or by time. 1189 997 Art.

or to criminal prosecution in the case of bouncing checks. Sps. if the thing is lost by fortuitous event before delivery. When ownership is transferred General rule: While a contract of sale is consensual. object sold is generic1002 E. as in our code. when object sold consists of fungible goods for a price fixed according to weight. When loss occurred after perfection but before delivery1001 General rule: Who bears the risk of loss is governed by the stipulations in the contract Exceptions: 1. Santos. Inc. usually in sales by installment. (EDCA Publishing and Distributing Corp. to the buyer. vs. D. Contrary stipulation or pactum reservati dominii1004 – a stipulation. 184 SCRA 614) 1004 contractual reservation of title 236 . 2. despite delivery of the property sold. Paras. negligence. Inc vs. Jalwindor Manufacturers. the vendor suffers the loss and cannot recover the price from the vendee (Commentaries and Jurisprudence on the Civil Code of the Philippines. number or measure 2. 93 SCRA 420) Nonpayment only creates a right to demand payment or to rescind the contract. Contrary view: Where the ownership is transferred by delivery. 1003 Daus vs. hence. ownership of the thing sold is acquired only upon its delivery. Buyer would have been the one to profit from the thing had it not been lost or destroyed. actual or constructive.1003 Exceptions: 1. ownership remains with the seller until full payment of the price is made. Tolentino) 1002 Civil Code of the Philippines. De Leon. as long as the property sold has been delivered (Sampaguita Pictures. Payment of the purchase price is not essential to the transfer of ownership. imposes the risk of loss upon the vendor. the application of the axiom res perit domino. whereby. seller is guilty of fraud. default or violation of contractual terms 3. This view conforms with Manresa’s view. Contract to sell 1001 In the absence of any stipulation: First view: Buyer bears the loss as an exception to the rule of res perit domino. 16 June 2003 This is true even if the purchase has been made on credit.

1006 B. or authorizing or purporting to authorize the possessor of the document to transfer or receive. Evidence of existence & possession of goods described therein 2. or any other document used in the ordinary course of business in the sale or transfer of goods. Contract of insurance – a perfected contract of sale. even without delivery. as proof of the possession or control of the goods. Negotiable documents of title A document of title in which it is stated that the goods referred to therein will be delivered to the bearer. 1504 1006 Art. Definition "Document of title to goods" includes any bill of lading. an existing interest over the goods sufficient to be the subject of insurance. 1005 Art. dock warrant. Medium by which seller is able to transfer possession of goods C. but when the ownership therein is transferred to the buyer the goods are at the buyer's risk whether actual delivery has been made or not. 3. Unless otherwise agreed. except that: (1) Where delivery of the goods has been made to the buyer or to a bailee for the buyer.1007 Those by the terms of which the bailee undertakes to deliver the goods to the bearer and which the bailee undertakes to deliver the goods to the order of a specified person. the goods remain at the seller's risk until the ownership therein is transferred to the buyer. Purpose of documents of title 1. either by indorsement or by delivery. or to the order of any person named in such document." or warehouse receipt or order for the delivery of goods. vests in the vendee an equitable title.1005 IX. the goods are at the buyer's risk from the time of such delivery. Documents of Title A. 1636 1007 Art. goods represented by such document. (2) Where actual delivery has been delayed through the fault of either the buyer or seller the goods are at the risk of the party in fault. "quedan. 1507 237 . in pursuance of the contract and the ownership in the goods has been retained by the seller merely to secure performance by the buyer of his obligations under the contract.

The bailee shall in no case be compelled to deliver up the actual possession of the goods until the document is surrendered to him or impounded by the court. or by a notification to such bailee by the transferor or a subsequent purchaser from the transferor of a subsequent sale of the goods by the transferor. whenever such warranties would have been implied if the contract of the parties had been to transfer without a document of title the goods represented thereby.1009 If goods are delivered to a bailee by the owner or by a person whose act in conveying the title to them to a purchaser in good faith for value would bind the owner and a negotiable document of title is issued for them they cannot thereafter. as against the transferor. (2) He has a legal right to negotiate or transfer it. but not negotiated. Warranties of seller of documents of title (1) The document is genuine. and thereby to acquire the direct obligation of such bailee to hold possession of the goods for him according to the terms of the document. 1516 1009 Art.1010 1008 Art. Rules on levy/garnishment of goods A person to whom a document of title has been transferred. (3) He has knowledge of no fact which would impair the validity or worth of the document. If the document is non-negotiable. E. Non-negotiable documents of title Those by the terms of which the goods covered are deliverable to a specified person. D. acquires thereby. and (4) He has a right to transfer the title to the goods and that the goods are merchantable or fit for a particular purpose. 1514 1010 Art. subject to the terms of any agreement with the transferor. be attached by garnishment or otherwise or be levied under an execution unless the document be first surrendered to the bailee or its negotiation enjoined. the title of the transferee to the goods and the right to acquire the obligation of such bailee may be defeated by the levy of an attachment of execution upon the goods by a creditor of the transferor. 1519 238 . such person also acquires the right to notify the bailee who issued the document of the transfer thereof. the title to the goods. while in possession of such bailee. Prior to the notification to such bailee by the transferor or transferee of a non- negotiable document of title.1008 F.

knowing that the seller is not going to perform the contract in full. the buyer may reject them. 1525 239 . Possessory lien over the goods 2. Special Right to rescind the sale 5. but if the buyer accepts or retains the goods so delivered.1011 X. however. (2) When a bill of exchange or other negotiable instrument has been received as conditional payment. A creditor whose debtor is the owner of a negotiable document of title shall be entitled to such aid from courts of appropriate jurisdiction by injunction and otherwise in attaching such document or in satisfying the claim by means thereof as is allowed at law or in equity in regard to property which cannot readily be attached or levied upon by ordinary legal process. Action for damages XI. Remedies of unpaid seller 1. Action for the price 6. Delivery of thing sold 1. Right of stoppage in transitu after he has parted with the possession of the goods and the buyer becomes insolvent 3. the buyer has used or disposed of the goods delivered before he knows that the seller is not going to perform his contract in full. Definition of unpaid seller The seller of goods is deemed to be an unpaid seller: (1) When the whole of the price has not been paid or tendered. Special Right of resale 4. 1011 Art. the buyer shall not be liable for more than the fair value to him of the goods so received. Performance of Contract A. Sale of Movables Where the seller delivers to the buyer a quantity of goods less than he contracted to sell. the insolvency of the buyer. 1520 1012 Art. or otherwise. If. 1012 B. and the condition on which it was received has been broken by reason of the dishonor of the instrument. he must pay for them at the contract rate. Remedies of an Unpaid Seller A.

the buyer may accept the goods which are in accordance with the contract and reject the rest. or measured and delivered. shall be governed by Articles 1163 to 1165. from the moment of the perfection of the contract to the time of delivery. and 1262. 1013 Art. or measure. the buyer may reject the whole of the goods. in the latter case. should this be not possible. If the buyer accepts the whole of the goods so delivered he must pay for them at the contract rate. after the contract has been perfected. the risk shall not be imputed to the vendee until they have been weighed. Sale of Immovables The obligation to deliver the thing sold includes that of placing in the control of the vendee all that is mentioned in the contract. 1537 1015 See Reference 1016 Art. in conformity with the following rules: If the sale of real estate should be made with a statement of its area. Should fungible things be sold for a price fixed according to weight.1016 2. All the fruits shall pertain to the vendee from the day on which the contract was perfected.1014 Any injury to or benefit from the thing sold. the vendee may choose between a proportional reduction of the price and the rescission of the contract. if the latter should demand it. 1522 1014 Art. special agreement. or without consideration of their weight. number. or course of dealing between the parties. at the rate of a certain price for a unit of measure or number. provided that. counted.1015 This rule shall apply to the sale of fungible things. 1480 240 . or measure. all that may have been stated in the contract. number. If the subject matter is indivisible. Where the seller delivers to the buyer the goods he contracted to sell mixed with goods of a different description not included in the contract. the buyer may accept the goods included in the contract and reject the rest. the vendor shall be obliged to deliver to the vendee. The provisions of this article are subject to any usage of trade. unless the latter has incurred in delay.1013 The vendor is bound to deliver the thing sold and its accessions and accessories in the condition in which they were upon the perfection of the contract. the lack in the area be not less than one-tenth of that stated. made independently and for a single price. but. Where the seller delivers to the buyer a quantity of goods larger than he contracted to sell.

1017 The actions arising from Articles 1539 and 15421018 shall prescribe in six months. making alterations in the goods or subjecting it to the process of manufacture. he may rescind the sale. if the vendee would not have bought the immovable had he known of its smaller area of inferior quality. taking them as they are or by any other similar 2. he retains the goods without intimating to the seller that he has rejected them. but only if necessary. 1584 241 . 1539 1018 See reference 1019 Art. goods when: and until the examination is completed or waived. Nevertheless. 1543 1020 See Art. in this case. if any part of the immovable is not of the quality specified in the contract. The rescission.1020 he does any act in relation to them which is inconsistent with the ownership of the seller 3. even when the area is the same. counted from the day of delivery. Exercise of acts of ownership over the goods is a manifestation of acceptance. he is under no obligation to accept 1. shall only take place at the will of the vendee. he intimates to the seller that the has them. The same shall be done. Exception: Buyer’s right to make a test of goods. when the inferior value of the thing sold exceeds one-tenth of the price agreed upon. the goods have been delivered to him and act. to enable him to determine whether to accept or reject the goods 1017 Art. such as making use of them as owner. after the lapse of a reasonable time.1019 3. Inspections and Acceptance Right of inspection Manifestation of Acceptance The buyer is entitled to examine the goods to The buyer is deemed to have accepted the decide whether he will become the owner. He may however waive this right by accepted them simply refusing to inspect the goods.

XII. and by which he promises or undertakes to insure that certain facts are or shall be as he then represents. natural tendency of affirmation or promise is to induce buyer to purchase subject matter 3. No affirmation of the value of the thing. 1546 242 . Warranties A. Where the goods cannot readily be resold for a reasonable price and the buyer wrongfully refuses to accept them even before the ownership of the goods has passed. and failure of which gives rise to an action for its breach. irrespective of the delivery or transfer of title 3. it must be an affirmation of fact or any promise by seller relating to the subject matter of sale 2. and if the buyer purchase the thing relying thereon. having reference to the character. Payment of price When may be exercised: 1. Where one party expressly promised that the contingency or some act fixed by the contract shall be performed. unless the seller made such affirmation or statement as an expert and it was relied upon by the buyer. if Article 15961021 is inapplicable. Where the price is payable on a day certain and he wrongfully neglects or refuses to pay for the price. Express warranties A statement or representation made by the seller of goods. the promise constitutes a warranty. Where the ownership has passed to the buyer and he wrongfully neglects or refuses to pay for the price 2. nor any statement purporting to be a statement of the seller's opinion only. like a promise that the goods are of a certain kind and character or that certain state of facts would exist.1023 1021 See Reference 1022 1. 1022 Any affirmation of fact or any promise by the seller relating to the thing is an express warranty if the natural tendency of such affirmation or promise is to induce the buyer to purchase the same. contemporaneously and as a part of the contract of sale. quality. buyer purchases the subject matter relying thereon 1023 Art. B. or title of the goods. shall be construed as a warranty.

not an essential element of a contract. return them or offer to return them to the seller and recover the price or any part thereof which has been paid. Warranty as to Fitness and Merchantability In a contract of sale. and that the buyer shall from that time have and enjoy the legal and peaceful possession of the thing.1025 C. there is: (1) An implied warranty on the part of the seller that he has a right to sell the thing at the time when the ownership is to pass. a. pledgee. at his election: (1) Accept or keep the goods and set up against the seller. be waived or modified by express stipulation. Warranty against hidden defects c. 1024 An implied warranty is a natural. Implied warranties1024 That which the law derives by implication or inference from the nature of the transaction or the relative situation or circumstances of the parties. mortgagee. and is deemed incorporated in the contract of sale. (3) Refuse to accept the goods. or any charge or encumbrance not declared or known to the buyer. irrespective of any intention of the seller to create it. or other person professing to sell by virtue of authority in fact or law. (2) An implied warranty that the thing shall be free from any hidden faults or defects. Warranty against eviction b. This shall not be held to render liable a sheriff. (De Leon) 1025 Art. the buyer may. B. unless a contrary intention appears. the breach of warranty by way of recoupment in diminution or extinction of the price. for the sale of a thing in which a third person has a legal or equitable interest. 1547 243 . It may however. and maintain an action against the seller for damages for the breach of warranty. (4) Rescind the contract of sale and refuse to receive the goods or if the goods have already been received. Effects of warranties Where there is a breach of warranty by the seller. (2) Accept or keep the goods and maintain an action against the seller for damages for the breach of warranty. auctioneer.

buyer without knowledge of a particular risk made general renunciation of warranty – not waiver but merely limits liability of seller in case of eviction1029 3.1027 (5) In the case of breach of warranty of quality. buyer with knowledge of risk of eviction assumed its consequences & made a waiver – vendor not liable. or if he fails to return or to offer to return the goods to the seller in substantially as good condition as they were in at the time the ownership was transferred to the buyer. the buyer shall thereafter be deemed to hold the goods as bailee for the seller. When the buyer has claimed and been granted a remedy in anyone of these ways. Where the buyer is entitled to rescind the sale and elects to do so. 1. such deterioration or injury shall not prevent the buyer from returning or offering to return the goods to the seller and rescinding the sale. If the price or any part thereof has already been paid. the seller shall be liable to repay so much thereof as has been paid. or if he fails to notify the seller within a reasonable time of the election to rescind. he shall cease to be liable for the price upon returning or offering to return the goods. concurrently with the return of the goods. such loss. but effect depends on good faith or bad faith on the part of the seller. 1599 1029 pay value of subject matter at time of eviction 1030 applicable only to waiver of warranty against eviction 244 . no other remedy can thereafter be granted. Effects of waivers Parties may increase or diminish implied warranty against eviction. seller in bad faith & there is waiver against eviction – null & void 2.1028 D. without prejudice to the provisions of the second paragraph of Article 1191. and with the remedies for the enforcement of such lien allowed to an unpaid seller by Article 1526. Where the buyer is entitled to rescind the sale and elects to do so. in the absence of special circumstances showing proximate damage of a greater amount.1030 1026 See Reference 1027 Ibid. if the seller refuses to accept an offer of the buyer to return the goods. but subject to a lien to secure the payment of any portion of the price which has been paid.1026 Where the goods have been delivered to the buyer. he cannot rescind the sale if he knew of the breach of warranty when he accepted the goods without protest. But if deterioration or injury of the goods is due to the breach or warranty. or immediately after an offer to return the goods in exchange for repayment of the price. 1028 Art. is the difference between the value of the goods at the time of delivery to the buyer and the value they would have had if they had answered to the warranty.

The term includes growing fruits or crops. "Specific goods" means goods identified and agreed upon at the time a contract of sale is made. Breach of Contract A. supra 1032 Art. Remedies of the Seller Actions for breach of the contract of sale of goods shall be governed particularly by the provisions of this Chapter. unless the context or subject matter otherwise requires: (1) "Document of title to goods" includes any bill of lading. whether insolvency proceedings have been commenced or not. buyer can still return them in that condition if such is due to breach or warranty 1031 See C. or authorizing or purporting to authorize the possessor of the document to transfer or receive. or any other document used in the ordinary course of business in the sale or transfer of goods. and as to matters not specifically provided for herein. Effects of Warranties. by other applicable provisions of this Title. Buyer’s options in case of breach of warranty1031 XIII. either by indorsement or by delivery. dock warrant." or warehouse receipt or order for the delivery of goods. E. whether for money or not.1032 In the preceding articles in this Title governing the sale of goods. constitutes "value" where goods or documents of title are taken either in satisfaction thereof or as security therefor. "Order" relating to documents of title means an order by indorsement on the documents. 1594 245 . goods represented by such document. An antecedent or pre-existing claim. When goods delivered to buyer he cannot rescind sale if he knew of the breach of warranty when he accepted goods without protest if he fails to return or offer to return goods to seller in substantially as good condition as they were at time ownership was transferred When goods deteriorated. (2) A person is insolvent within the meaning of this Title who either has ceased to pay his debts in the ordinary course of business or cannot pay his debts as they become due. "quedan. as proof of the possession or control of the goods. "Quality of goods" includes their state or condition. "Goods" includes all chattels personal but not things in action or money of legal tender in the Philippines.

be bound to take delivery of them. (3) Foreclose the chattel mortgage on the thing sold. 1636 1034 Art. (3) Goods are in a "deliverable state" within the meaning of this Title when they are in such a state that the buyer would. should the vendee fail to pay. when the lessor has deprived the lessee of the possession or enjoyment of the thing. a longer period for its payment has been stipulated i. Sale of Goods – i. action to rescind the sale1034 b. Recto Law: Sale of Movables on Installment The Recto law1037 provides for remedies of a seller in contracts of sale of personal property by installment.1039 In the case referred to in the two preceding articles. should the vendee's failure to pay cover two or more installments.1040 1033 Art. Movables in General – Failure of the vendee to appear to receive delivery or. action for damages1036 B.1038 The preceding article shall be applied to contracts purporting to be leases of personal property with option to buy. 1485 246 . under the contract. Any agreement to the contrary shall be void. as follows: (1) Exact fulfillment of the obligation. should the vendee's failure to pay cover two or more installments.1033 1. Sale of Movables a. (2) Cancel the sale. 1484 1039 Art. having appeared. 1596 1037 Installment Sales Law 1038 Art. 1595 1036 Art. 1593 1035 Art. failure to tender the price at the same time. action for the price1035 ii. if one has been constituted. unless. In this case. a stipulation that the installments or rents paid shall not be returned to the vendee or lessee shall be valid insofar as the same may not be unconscionable under the circumstances. he shall have no further action against the purchaser to recover any unpaid balance of the price.

1486 1041 Sec. the seller may cancel the contract after 30 days from 1040 Art. 24 1043 Maceda Law 247 . 1972. 6552.1041 The rights of the buyer in the event of this failure to pay the installments due for reasons other than the failure of the owner or developer to develop the project shall be governed by Republic Act No. the seller shall refund to the buyer the cash surrender value of the payments on the property equivalent to the 50% of the total payment made every year but not to exceed 90% of the total payments made. after due notice to the owner or developer. without additional interest. Where the buyer has paid at least two (2) years of installment. C. the unpaid installments due within the total grace period earned by him which is fixed at the rate of one month grace period for every one year of installments. If he fails to pay the installments due at the expiration of the grace period. Where the buyer has paid less than two years. Sale of Immovables 1. Where the transaction or contract was entered into prior to the effectivity of Republic Act No. 23 1042 Sec. P.1042 2. the defaulting buyer shall be entitled to the corresponding refund based on the installments paid after the effectivity of the law in the absence of any provision in the contract to the contrary. Such buyer may. with interest thereon at the legal rate. 2) If the contract is cancelled. 957 No installment payment made by a buyer in a subdivision or condominium project for the lot or unit he contracted to buy shall be forfeited in favor of the owner or developer when the buyer. 6552 on August 26.D. be reimbursed the total amount paid including amortization interests but excluding delinquency interests. the buyer is entitled to the following rights in case he defaults in payments of succeeding installments: 1) To pay. he shall be entitled to a grace period of 60 days from the date the installment became due. Sale of Immovables on Installment1043 It covers sales on installments of residential real estate and financing of such acquisitions. at his option. desists from further payment due to the failure of the owner or developer to develop the subdivision or condominium project according to the approved plans and within the time limit for complying with the same.

2. (4) Confusion or merger of the rights of creditor and debtor. Remedies of the Buyer 1. or the demand for rescission of the contract by a notarial act. Rescind ii. Sale of Immovables If disturbed in possession or with reasonable grounds to fear disturbance i. Sale of Movable When seller fails to deliver. 2. Suspend payment In case of subdivision or condo projects: If real estate developer fails to comply with obligations according to approved plan: i. Rescission. Fulfillment of a resolutory condition. Causes Obligations are extinguished by: (1) Payment or performance.receipt by the buyer of the notice of cancellation. 3. C. (2) Loss of the thing due. Suspend payment until seller complies XIV. buyer may seek specific performance without giving seller option to retain goods on payment of damages. (5) Compensation. Extinguishment of the Sale A. (6) Novation. and 248 . Other causes: 1. (3) Condonation or remission of the debt. Annulment.

the price of the sale. 1600 1046 The vendor cannot avail himself of the right of repurchase without returning to the vendee the price of the sale.1048 The contract shall be presumed to be an equitable mortgage. 208 SCRA 496 249 .1045 B. Conventional redemption The right which the vendor reserves to himself. b. expenses of the contract. c. (3) When upon or after the expiration of the right to repurchase another instrument extending the period of redemption or granting a new period is executed. the necessary and useful expenses made on the thing sold. any other legitimate payments made therefore and. and e. and in addition: (1) The expenses of the contract. 1231 1045 Art. 1044 Art. 1601 1048 Cachola vs. d. Prescription.1044 Sales are extinguished by the same causes as all other obligations and by conventional or legal redemption. and any other legitimate payments made by reason of the sale.1047 C. with the obligation to comply with the provisions of Article 16161046 and other stipulations which may have been agreed upon. 4. to reacquire the property sold provided he returns to the vendee: a. (2) The necessary and useful expenses made on the thing sold. (2) When the vendor remains in possession as lessee or otherwise. form of words. fulfills other stipulations which may have been agreed upon. or other requisites prescribed by law for a mortgage. but shows the intention of the parties to make the property subject of the contract as security for a debt and contains nothing impossible or contrary to law. Equitable mortgage One which lacks the proper formalities. 1047 Art. CA. in any of the following cases: (1) When the price of a sale with right to repurchase is unusually inadequate. Conventional redemption shall take place when the vendor reserves the right to repurchase the thing sold.

shall last four years from the date of the contract. 1049 Art. 1602 1050 Art. a perfected contract of sale resulted. Should there be an agreement. even though the option was not supported by a consideration.1054 in the absence of an express agreement.1052 D. the moment it was accepted. However. the period cannot exceed ten years.1053 In an option to buy. at anytime within the agreed period. the only importance of the consideration for an option is that the option cannot be withdrawn by the grantor after acceptance. In view of the ruling of the Supreme Court. the party who has an option may validly and effectively exercise his right by merely notifying the owner of the former’s decision to buy and expressing his readiness to pay the stipulated price. 1604 1053 An option without consideration is void and the effect is the same as if there was no option. In any of the foregoing cases. Distinguish from option to buy Option contract A contract granting a privilege in one person. 1324 of the NCC. a contract purporting to be a sale with right to repurchase shall be construed as an equitable mortgage. 1054 supra 250 . E. Period of redemption The right referred to in article 1601. applying Art. 1603 1051 supra 1052 Art. Rigos (1972). in Sanchez vs. or other benefit to be received by the vendee as rent or otherwise shall be considered as interest which shall be subject to the usury laws. fruits. for which he has paid a consideration. (4) When the purchaser retains for himself a part of the purchase price. (6) In any other case where it may be fairly inferred that the real intention of the parties is that the transaction shall secure the payment of a debt or the performance of any other obligation. which gives him the right to buy certain merchandise. at a fixed price.1049 In case of doubt. (5) When the vendor binds himself to pay the taxes on the thing sold.1050 The provisions of Article 16021051 shall also apply to a contract purporting to be an absolute sale. any money.

However. and in addition: (1) The expenses of the contract. (2) The necessary and useful expenses made on the thing sold. 1616 1057 Art.1055 F. Age redemption1058 XV.1056 G. or by any other transaction whereby ownership is transmitted by onerous title. 1058 ibid 1059 PD 957. The Condominium Act1060 1055 Art. Exercise of the right to redeem The vendor cannot avail himself of the right of repurchase without returning to the vendee the price of the sale. upon the same terms and conditions stipulated in the contract. ibid 251 .1057 H. and any other legitimate payments made by reason of the sale. Legal redemption The right to be subrogated. It must be exercised within thirty (30) days from the notice in writing by the vendor. The Subdivision and Condominium Buyers' Protective Decree1059 XVI. 1619 May be effected against movables or immovables. see Reference 1060 RA 4726. in the place of one who acquires a thing by purchase or dation in payment. 1606 1056 Art. the vendor may still exercise the right to repurchase within thirty days from the time final judgment was rendered in a civil action on the basis that the contract was a true sale with right to repurchase.

1063 Mixed succession is that effected partly by will and partly by operation of law.1065 "Decedent" is the general term applied to the person whose property is transmitted through succession.1067 1061 Art. but also those which have accrued thereto since the opening of the succession. he is also called the testator. or (3) Mixed.1066 The inheritance of a person includes not only the property and the transmissible rights and obligations existing at the time of his death. 778 1063 Art.1062 Testamentary succession is that which results from the designation of an heir. of a person are transmitted through his death to another or others either by his will or by operation of law. made in a will executed in the form prescribed by law. rights and obligations of a person which are not extinguished by his death.1064 A. (2) Legal or intestate. rights and obligations to the extent of the value of the inheritance. 774 1066 Art. General Provisions The inheritance includes all the property. 776 1062 Art. 781 252 . 780 1065 Art.1061 Succession may be: (1) Testamentary. whether or not he left a will. Definition/What is transmitted Succession is a mode of acquisition by virtue of which the property. If he left a will. 775 1067 Art. 779 1064 Art. SUCCESSION I.

1072 The duration or efficacy of the designation of heirs. when referred to by name. Legatees – An heir is a person called to the succession either by the provision of a will or by operation of law. to take effect after his death. 783 1071 Art. 787 1072 Art. Kinds of Successors – Heirs. When succession occurs The rights to the succession are transmitted from the moment of the death of the decedent. or accomplished through the instrumentality of an agent or attorney.1068 C. it cannot be left in whole or in part to the discretion of a third person. Wills 1.1070 The testator may not make a testamentary disposition in such manner that another person has to determine whether or not it is to be operative. or the determination of the portions which they are to take. Definition and characteristics A will is an act whereby a person is permitted. Testamentary Succession A. 782 1070 Art. with the formalities prescribed by law. B. 777 1069 Art. Devisees and legatees are persons to whom gifts of real and personal property are respectively given by virtue of a will.1071 i) Act of making a will a strictly personal act The making of a will is a strictly personal act.1073 1068 Art.1069 II. In General a. 785 253 . 784 1073 Art. Devisees. to control to a certain degree the disposition of this estate. cannot be left to the discretion of a third person. devisees or legatees.

786 1075 The testator’s intent (animus testandi). 790 1079 Art. or public policy that it cannot be given effect. and that he was unacquainted with such technical sense. and also the designation of the persons. 791 254 . if it can be done consistently with the established rules of law. mistakes and omissions must be corrected. the testator's intention is to be ascertained from the words of the will. unless a clear intention to use them in another sense can be gathered. that interpretation by which the disposition is to be operative shall be preferred. morals. It is sometimes said that the supreme law in succession is the intent of the testator. in case of doubt. and when an uncertainty arises upon the face of the will. 789 1078 Art.1079 1074 Art. taking into consideration the circumstances under which it was made. if the error appears from the context of the will or from extrinsic evidence. In case of doubt. or when no person or property exactly answers the description.1078 The words of a will are to receive an interpretation which will give to every expression some effect. All rules of construction are designed to ascertain and give effect to that intention. That construction is to be adopted which will sustain and uphold the will in all its parts. that is to be preferred which will prevent intestacy. as well as giving effect to such intent. as to the application of any of its provisions. Technical words in a will are to be taken in their technical sense. institutions or establishments to which such property or sums are to be given or applied. is primordial. rather than one which will render any of the expressions inoperative.1074 ii) Rules of Construction and Interpretation1075 If a testamentary disposition admits of different interpretations. or unless it satisfactorily appears that the will was drawn solely by the testator. a) Exception The testator may entrust to a third person the distribution of specific property or sums of money that he may leave in general to specified classes or causes. that interpretation by which the disposition is to be operative shall be preferred. 1076 Art. and of two modes of interpreting a will. excluding such oral declarations. It is only when the intention of the testator is contrary to law.1077 The words of a will are to be taken in their ordinary and grammatical sense. unless the context clearly indicates a contrary intention.1076 When there is an imperfect description. excluding the oral declarations of the testator as to his intention. 788 1077 Art. and that other can be ascertained.

793 1082 Art. 794 1083 Art. 797 1089 Art.1087 a. 795 1084 Testamentary capacity: 1. 1080 Art. 798 255 .1086 A married woman may dispose by will of all her separate property as well as her share of the conjugal partnership or absolute community property. Testamentary Capacity1084 and Intent All persons who are not expressly prohibited by law may make a will. 18 years old and above 3.1082 iii) Law governing formal validity The validity of a will as to its form depends upon the observance of the law in force at the time it is made. and without the authority of the court. should it expressly appear by the will that such was his intention. 802 1087 Art. at the time of its execution 1085 Art.1088 b.1083 2.1080 Property acquired after the making of a will shall only pass thereby. unless it is to be presumed that the testator would not have made such other dispositions if the first invalid disposition had not been made. The invalidity of one of several dispositions contained in a will does not result in the invalidity of the other dispositions. 796 1086 Art.1081 Every devise or legacy shall cover all the interest which the testator could device or bequeath in the property disposed of. as if the testator had possessed it at the time of making the will. Soundness of Mind It is essential that the testator be of sound mind at the time of execution of the 1089 will. All persons who are not expressly prohibited by law 2. 792 1081 Art. Age Requirement Persons of either sex under eighteen (18) years of age cannot make a will.1085 A married woman may make a will without the consent of her husband. 803 1088 Art. unless it clearly appears from the will that he intended to convey a less interest. Of sound mind.

and those which have for their object public order. the person who maintains the validity of the will must prove that the testator made it during a lucid interval. injury or other cause. the proper objects of his bounty. and the character of the testamentary act. 800 1092 Art. When the acts referred to are executed before the diplomatic or consular officials of the Republic of the Philippines in a foreign country. Form a) Rules governing the formal validity of wills The forms and solemnities of contracts. (iii) Supervening incapacity Does not invalidate an effective will. before making his will was publicly known to be insane. unimpaired. nor is the will of an incapable validated by the supervening of capacity. their acts or property. Prohibitive laws concerning persons. (i) When testator is deemed to be of sound mind It is not necessary that the testator be in full possession of all his reasoning faculties. It shall be sufficient if the testator was able at the time of making the will to know the nature of the estate to be disposed of. the solemnities established by Philippine laws shall be observed in their execution. or less. public policy and good customs shall not be rendered ineffective by laws or judgments promulgated. or unshattered by disease. and other public instruments shall be governed by the laws of the country in which they are executed.1090 The burden of proof that the testator was not of sound mind at the time of making his dispositions is on the person who opposes the probate of the will.1092 3. but if the testator. 17 256 . 799 1091 Art. or that his mind be wholly unbroken.1093 1090 Art. in the absence of proof to the contrary. wills. or by determinations or conventions agreed upon in a foreign country. one month. 801 1093 Art.1091 (ii) Presumptions Every person is of sound mind.

1099 Capacity to succeed is governed by the law of the nation of the decedent. or in conformity with those which this Code prescribes. 804 257 .1101 1094 Art.1097 (i) See law governing substantive validity Laws relating to family rights and duties. which is executed in accordance with the law of the country of which he is a citizen or subject. Such will may be probated in the Philippines. 817 1097 Art. 815 1095 Art. 1039 1101 Art.1096 Wills. even though authorized by the laws of the country where they may have been executed.1094 The will of an alien who is abroad produces effect in the Philippines if made with the formalities prescribed by the law of the place in which he resides. condition and legal capacity of persons are binding upon citizens of the Philippines. prohibited by the preceding article. executed by Filipinos in a foreign country shall not be valid in the Philippines. he is authorized to make a will in any of the forms established by the law of the country in which he may be.1095 A will made in the Philippines by a citizen or subject of another country. shall have the same effect as if executed according to the laws of the Philippines. 819 1098 Art.1100 b) Common requirements (i) In Writing (ii) Language/Dialect Requirement Every will must be in writing and executed in a language or dialect known to the testator.1098 Real property as well as personal property is subject to the law of the country where it is stipulated. 15 1099 Art. and which might be proved and allowed by the law of his own country. even though living abroad. When a Filipino is in a foreign country. or to the status. 16 1100 Art. 816 1096 Art. or according to the formalities observed in his country.

The number of pages used upon which the will is written b.1102 (ii) Special rules for handicapped testators Testator is deaf or a deaf mute Testator is blind 1. stating the following: a. must be signed by the testator or by the person requested by him to write his name. if The will shall be read to the testator twice – able to do so. or caused some other person to write his name. Otherwise. under his express direction.1104 1102 Arts. in the presence of the instrumental witnesses c. The fact that the testator signed the will and every page.1103 the will is acknowledged. Subscribed at the end by the testator himself or by the testator’s name written by some other person in his presence. It must contain an attestation clause. he shall designate two persons to read it and communicate to him. 805-806 258 . Each and every page of the will must be numbered correlatively in letters placed on the upper part of each page 7. In a language or dialect known to the testator 3. except the last. and by his express direction 4. Attested & subscribed by three or more credible witnesses in the presence of the testator and of one another 5. Once by one of the subscribing witnesses 2. Once by the notary public before whom practicable manner. its contents. c) Notarial Wills (i) Arts. 805-806 Requisites for valid notarial will: 1. In writing 2. on the left margin 6. 1. in some 2. All the instrumental witnesses witnessed and signed the will and all its pages in the presence of the testator and of one another 8. It must be acknowledged before a notary public by the testator and the witnesses. Testator must personally read the will. and by the instrumental witnesses of the will. Each and every page.

(iii) Substantial Compliance In the absence of bad faith. (2) Those who have been convicted of falsification of a document. 822 1109 Art. 807 1104 Art. perjury or false testimony 1107 Art. or undue and improper pressure and influence. deaf or dumb 4. perjury or false testimony. or fraud. deaf or dumb. However. be void. Of the age of 18 years or more 3. or child. Able to read and write 5.1106 Disqualified from being witnesses to a will: (1) Any person not domiciled in the Philippines.1109 1103 Art. a devise or legacy is given by such will. to whom or to whose spouse. so far only as concerns such person.1105 (iv) Witnesses to wills Any person of sound mind and of the age of eighteen (18) years or more. 821 1108 Art. such devise or legacy shall. 809 1106 Art. or child. Domiciled in the Philippines 6.1108 If a person attests the execution of a will. or any one claiming under such person or spouse. unless there are three other competent witnesses to such will. defects and imperfections in the form of attestation or in the language used therein shall not render the will invalid if it is proved that the will was in fact executed and attested in substantial compliance with all the requirements of Article 805. or parent. Have not been convicted of falsification of a document. Not blind. and able to read and write. their becoming subsequently incompetent shall not prevent the allowance of the will. and not blind. or parent. 820 Qualifications of witnesses to a notarial will: 1. or spouse. Of sound mind 2. such person so attesting shall be admitted as a witness as if such devise or legacy had not been made or given.1107 If the witnesses attesting the execution of a will are competent at the time of attesting. 808 1105 Art. 823 259 . forgery. or parent. or child of such person.

either for their reciprocal benefit or for the benefit of a third person. 810 1112 Art. and may be made in or out of the Philippines.1112 When a number of dispositions appearing in a holographic will are signed without being dated. at least three of such witnesses shall be required. and need not be witnessed. 811 1116 Art. whatever be the time of prior dispositions.1110 d. If the will is contested.1111 The dispositions of the testator written below his signature must be dated and signed by him in order to make them valid as testamentary dispositions. and signed by the hand of the testator himself.1113 (a) Requirements in case of alterations The testator must authenticate the same by his full signature. such date validates the dispositions preceding it.1116 1110 Art.1115 e. dated. 813 1114 Art. 824 1111 Art. It is subject to no other form. and if the court deem it necessary. expert testimony may be resorted to. Joint Wills Two or more persons cannot make a will jointly. or in the same instrument.1114 (ii) Witnesses Required for Probate It shall be necessary that at least one (1) witness who knows the handwriting and signature of the testator explicitly declare that the will and the signature are in the handwriting of the testator. 814 1115 Art. In the absence of any competent witness. Holographic Wills (i) Requirements Must be entirely written. 812 1113 Art. and the last disposition has a signature and a date. A mere charge on the estate of the testator for the payment of debts due at the time of the testator's death does not prevent his creditors from being competent witnesses to his will. 818 260 .

stating among other things the number of pages thereof c. by which disposition made in the original will is explained. Wills.1117 4.1119 5. it shall be executed as in the case of a will. Incorporate by Reference1120 Requisites: a. by a person who does not have his domicile in this country. Definition and Formal Requirements A codicil is supplement or addition to a will. 819 1118 Art. It must be identified by clear and satisfactory proof as the document or paper referred to therein d. Any waiver or restriction of this right is void. The document or paper referred to in the will must be in existence at the time of the execution of the will b. 828 261 .1122 A revocation done outside the Philippines. Codicils a. books of accounts. or altered. or according to the law of the place in which the testator had his domicile at 1117 Art. executed by Filipinos in a foreign country shall not be valid in the Philippines.1121 6.1118 In order that a codicil may be effective. It must be signed by the testator and the witnesses on each and every page. made after the execution of a will and annexed to be taken as a part thereof. 826 1120 Contemplates only lists of properties. added to. 827 1122 Art. is valid when it is done according to the law of the place where the will was made. except in case of voluminous books of account or inventories. 1121 Art. The will must clearly describe and identify the same. even though authorized by the laws of the country where they may have been executed. Revocation A will may be revoked by the testator at any time before his death. and inventories. Provisions which are in the nature of testamentary dispositions must be contained in the will itself. prohibited above. 825 1119 Art.

devisee/legatee revokes testamentary provisions in his favor. Kinds (1) By implication of law. alienation.1125 A revocation of a will based on a false cause or an illegal cause is null and void1126. said marriage shall be void ab initio and testamentary dispositions made by one in favor of the other are revoked by operation of law (Art. 833 1127 Art. cancelling. tearing. legal separation revokes testamentary provisions in favor of the offending spouse. or loss of bequeathed property revokes a legacy of such property. Express – when there is a revocatory clause expressly revoking the previous will or a part thereof b. or other writing executed as provided in case of wills. FC). or by their renunciation. codicil. 832 1126 Art. judicial action for recovery of debt revokes a legacy of credit/remission of debt. 829 1124 Art. 262 . f.1124 A revocation made in a subsequent will shall take effect. cancelled.1129 or (3) By burning. b. c. by the testator himself. 1129 Which may either be: a. even though the will wherein it was made should be revoked. Implied – when the provisions thereof are partially or entirely inconsistent with those of the previous will. preterition revokes the institution of heir.1128 or (2) By some will. devisees or legatees designated therein. void ab initio or annulled marriages revoke testamentary dispositions made by one spouse in favor of the other (Art. and by his express direction.1127 a. d. if both spouses of the subsequent marriage acted in bad faith. when it is in accordance with the provisions of this Code. and g. 50. e. and if the revocation takes place in this country. 44. torn. or obliterating the will with the intention of revoking it. transformation. even if the new will should become inoperative by reason of the incapacity of the heirs. annul only such dispositions in the prior wills as are inconsistent with or contrary to those contained in the later wills. The recognition of an illegitimate child does not lose its legal effect. without the express direction of the testator. 834 1128 a. act of unworthiness by an heir. If burned. or obliterated by some other person. 831 1125 Art. the will may still be established.the time. FC).1123 Subsequent wills which do not revoke the previous ones in an express manner. or by some other person in his presence. and the estate 1123 Art.

1132 While express revocation may be effected by a subsequent will. d. Allowance and Disallowance of Wills a. The testator himself may. completion of the subjective phase. testamentary capacity at the time of performing the act of destruction. (6) The testator acted by mistake or did not intend that the instrument he signed should be his will at the time of affixing his signature thereto. or otherwise mentally incapable of making a will.1130 7. (4) It was procured by undue and improper pressure and influence.distributed in accordance therewith. shall be conclusive as to its due execution. and e. intent to revoke (animus revocandi). or a codicil. actual physical act of destruction. 830 Requisites: a. if its contents. or a codicil. cancellation. 838 263 . during his lifetime. or threats. Probate Requirement No will shall pass either real or personal property unless it is proved and allowed. implied revocation may be effected only by either a subsequent will.1131 (i) Issues to be Resolved in Probate Proceedings The will shall be disallowed in any of the following cases: (1) The formalities required by law have not been complied with. and the fact of its unauthorized destruction. (2) The testator was insane. 1130 Art. Subject to the right of appeal. on the part of the beneficiary or of some other person. (The list is exclusive) 1131 Art. (5) The signature of the testator was procured by fraud. at the time of its execution. c. b. and due execution. performed by the testator himself or by some other person in his presence and express direction. The Supreme Court shall formulate such additional Rules of Court as may be necessary for the allowance of wills on petition of the testator. (3) It was executed through force or under duress. either during the lifetime of the testator or after his death. or a nontestamentary writing executed as provided in case of wills. petition the court having jurisdiction for the allowance of his will. or the influence of fear. or obliteration are established. the allowance of the will.

156 1134 See Art. 843 264 . Paredes. and when there are two persons having the same names. and even though the person so instituted should not accept the inheritance or should be incapacitated to succeed. 47 Phil. supra 1135 Art. or such institution should not comprise the entire estate. 839. 842 1138 Art.1135 A will shall be valid even though it should not contain an institution of an heir. 839 1133 Manalo vs. (a) Exceptions: when practical considerations demand the intrinsic validity of the will be resolved (ii) Effect of Final Decree of Probate. 1136 Art. In such cases the testamentary dispositions made in accordance with law shall be complied with and the remainder of the estate shall pass to the legal heirs. In re Estates of Johnson.1136 One who has no compulsory heirs may dispose by will of all his estate or any part of it in favor of any person having capacity to succeed. Institution of Heirs An act by virtue of which a testator designates in his will the person or persons who are to succeed him in his property and transmissible rights and obligations. 841 1137 Art. should he designate him in such manner that there can be no doubt as to who has been instituted.1137 The testator shall designate the heir by his name and surname. b. Grounds for Denying Probate1134 B.1133 and public policy and sound practice demand that at the risk of occasional errors judgment of courts should become final at some definite date fixed by law. Even though the testator may have omitted the name of the heir. Res Judicata on Formal Validity Binding upon the whole world. he shall indicate some circumstance by which the instituted heir may be known. the institution shall be valid. 39 Phil. 938. 840 The proper test in order to determine the validity of an institution of heir is the possibility of finally ascertaining the identity of the instituted heir by intrinsic or extrinsic evidence. One who has compulsory heirs may dispose of his estate provided he does not contravene the provisions of this Code with regard to the legitime of said heirs.1138 1132 Art.

However. 846 1142 Art. 849 1145 Art. 847 1143 Art. even with the use of other proof. unless it appears from the will that the testator would not have made such institution if he had known the falsity of such cause. to know with certainty the person instituted.1145 If the testator has instituted only one heir. the person instituted cannot be identified. and the children of C. 844 1140 Art. surname. as the case may be.1140 Heirs instituted without designation of shares shall inherit in equal parts.1143 When the testator calls to the succession a person and his children they are all deemed to have been instituted simultaneously and not successively." those collectively designated shall be considered as individually instituted. legal succession takes place with respect to the remainder of the estate. each being limited to an aliquot part. and all the parts do not cover the whole inheritance.1144 The statement of a false cause for the institution of an heir shall be considered as not written.1141 When the testator institutes some heirs individually and others collectively as when he says. If among persons having the same names and surnames. unless by some event or circumstance his identity becomes certain. 850 1146 Art. An error in the name. and the institution is limited to an aliquot part of the inheritance.1139 Every disposition in favor of an unknown person shall be void. and each of them has 1139 Art. in any other manner. "I designate as my heirs A and B. there is a similarity of circumstances in such a way that. and he has some of full blood and others of half blood. the inheritance shall be distributed equally unless a different intention appears. The same rule applies if the testator has instituted several heirs. or the whole free portion. none of them shall be an heir.1146 If it was the intention of the testator that the instituted heirs should become sole heirs to the whole estate. 848 1144 Art. or circumstances of the heir shall not vitiate the institution when it is possible. 851 265 . 845 1141 Art. unless it clearly appears that the intention of the testator was otherwise. a disposition in favor of a definite class or group of persons shall be valid.1142 If the testator should institute his brothers and sisters.

1151 1147 Art.1148 A voluntary heir who dies before the testator transmits nothing to his heirs. Preterition a. It annuls the institution of heir. a person incapacitated to succeed. If the omitted compulsory heir should die before the testator. Effects (i) Effects of preterition. shall transmit no right to his own heirs except in cases expressly provided for in this Code. devisees only entitled to completion of legitime i. each part shall be reduced proportionally. the institution shall be effectual. The heir omitted must be a compulsory heir in the direct line. A compulsory heir who dies before the testator. 854. Definition The omission in the testator’s will of one. and ii.1150 b. or the whole free portion. 2nd par. 2.been instituted to an aliquot part of the inheritance and their aliquot parts together do not cover the whole inheritance.1149 1. 1151 Art. and the parts together exceed the whole inheritance. 266 . 853 1149 Art. 1st par. Requisites 1. as the case may be. without prejudice to the right of representation. some. and 3. 852 1148 Art. ii. whether living at the time of the execution of the will or born after the death of the testator. 856 1150 Art. The omission must be complete and total in character. or all of the compulsory heirs in the direct line. and one who renounces the inheritance. The compulsory heir omitted must survive the testator. c. The devises and legacies are valid insofar as they are not inofficious.1147 If each of the instituted heirs has been given an aliquot part of the inheritance. 854. or the whole free portion. each part shall be increased proportionally.

907 1157 Art. 855 1155 Art. supra 1153 see Legitime. so much as may be necessary must be taken proportionally from the shares of the other compulsory heirs. the value of the property left at the death of the testator shall be considered. shall be added the value of all donations by the testator that are subject to collation. Disposition less than Legitime/Donation inter vivos The share of a child or descendant omitted in a will must first be taken from the part of the estate not disposed of by the will. insofar as they may be inofficious or excessive. Concept1152 3. 909 1159 Art. Compulsory Heirs in the Direct Line1153 4.1157 Donations given to children shall be charged to their legitime. 908 1158 Art. 906 1156 Art.1158 Donations which an illegitimate child may have received during the lifetime of his father or mother. To the net value of the hereditary estate. if any. they shall be reduced in the manner prescribed by this Code. Donations made to strangers shall be charged to that part of the estate of which the testator could have disposed by his last will. if that is not sufficient.1159 After the legitime has been determined in accordance with the three preceding articles.1154 Any compulsory heir to whom the testator has left by any title less than the legitime belonging to him may demand that the same be fully satisfied. the reduction shall be made as follows: 1152 See Definition.1156 To determine the legitime. Preterition vs. Should they exceed the portion that can be freely disposed of. shall be charged to his legitime. which shall not include those imposed in the will. deducting all debts and charges. 910 267 . 2.1155 Testamentary dispositions that impair or diminish the legitime of the compulsory heirs shall be reduced on petition of the same. infra 1154 Art. at the time he made them. they shall be reduced according to the rules established by this Code. Insofar as they may be inofficious or may exceed the disposable portion.

912 1162 Art. but the former and the latter shall reimburse each other in cash for what respectively belongs to them. in consequence of disinheritance. 917 268 . or which is not one of those set forth in this Code. (2) The reduction of the devises or legacies shall be pro rata. If the testator has directed that a certain devise or legacy be paid in preference to others. 913 1163 Art. if contradicted. without any distinction whatever. any heir or devisee who did not have such right may exercise it. 916 1166 Art. provided its value does not exceed that of the disposable portion and of the share pertaining to him as legitime. to the compulsory heirs. (3) If the devise or legacy consists of a usufruct or life annuity. 915 1165 Art. reducing or annulling. be deprived of his legitime. shall annul the institution of heirs insofar as it may prejudice the person disinherited.1160 If the devise subject to reduction should consist of real property. 911 1161 Art.1163 A compulsory heir may. if necessary.1161 If the heirs or devisees do not choose to avail themselves of the right granted by the preceding article. it shall not suffer any reduction until the latter have been applied in full to the payment of the legitime. but the devises 1160 Art. and in a contrary case. should the latter not make use of it.1164 Disinheritance can be effected only through a will wherein the legal cause therefor shall be specified. The devisee who is entitled to a legitime may retain the entire property. for causes expressly stated by law.1166 Disinheritance without a specification of the cause. the property shall be sold at public auction at the instance of any one of the interested parties. which cannot be conveniently divided. 914 1164 Art. the devises or legacies made in the will.1162 The testator may devise and bequeath the free portion as he may deem fit.1165 The burden of proving the truth of the cause for disinheritance shall rest upon the other heirs of the testator. whose value may be considered greater than that of the disposable portion. (1) Donations shall be respected as long as the legitime can be covered. if the disinherited heir should deny it. it shall go to the devisee if the reduction does not absorb one-half of its value. is not proved. or for a cause the truth of which. the compulsory heirs may choose between complying with the testamentary provision and delivering to the devisee or legatee the part of the inheritance of which the testator could freely dispose.

or should not wish. unless it clearly appears that the intention of the testator was otherwise.1172 1167 Art. 859 1169 Art.1171 The following shall not take effect: (1) Fideicommissary substitutions which are not made in an express manner. (3) Those which impose upon the heir the charge of paying to various persons successively. the substitute shall acquire the share of the heir who dies. A simple substitution.1167 C. 861 1171 Art. Substitution of Heirs The testator may designate one or more persons to substitute the heir or heirs instituted in case such heir or heirs should die before him. unless the testator has otherwise provided. or is incapacitated. a certain income or pension. and even a temporary one. 860 1170 Art. and one person for two or more heirs. or imposing upon the fiduciary the absolute obligation to deliver the property to a second heir. or the charges or conditions are personally applicable only to the heir instituted. they shall have the same share in the substitution as in the institution.1169 If heirs instituted in unequal shares should be reciprocally substituted. unless and testator has expressly provided the contrary. or should be incapacitated to accept the inheritance. If there are more than one substitute. without a statement of the cases to which it refers. beyond the limit fixed in article 863. (2) Provisions which contain a perpetual prohibition to alienate. shall comprise the three mentioned in the preceding paragraph. either by giving them this name.1168 Two or more persons may be substituted for one.and legacies and other testamentary dispositions shall be valid to such extent as will not impair the legitime. 918 1168 Art. renounces. 867 269 . beyond the limit prescribed in article 863. 862 1172 Art. (4) Those which leave to a person the whole or part of the hereditary property in order that he may apply or invest the same according to secret instructions communicated to him by the testator.1170 The substitute shall be subject to the same charges and conditions imposed upon the instituted heir.

The nullity of the fideicommissary substitution does not prejudice the validity of the
institution of the heirs first designated; the fideicommissary clause shall simply be considered
as not written.1173

The dispositions of the testator declaring all or part of the estate inalienable for more
than twenty years are void.1174

1. Definition

Substitution is the appointment of another heir so that he may enter into the
inheritance in default of the heir originally instituted.1175
The act by which the testator designates the person or persons to take the place of
the heir or heirs first instituted.1176

2. Kinds:

(a) Simple or common;
(b) Brief or compendious;
(c) Reciprocal; or
(d) Fideicommissary.1177

3. Simple Substitution

When the testator designates one or more persons to substitute the heirs/s instituted
in case such heir/s should die before him, or should not wish, or should be incapacitated to
accept the inheritance

4. Fideicommissary Substitution

The fiduciary or first heir instituted is entrusted with the obligation to preserve and
to transmit to a second heir the whole or part of the inheritance, provided such substitution
does not go beyond one degree from the heir originally instituted, and provided further, that
the fiduciary or first heir and the second heir are living at the time of the death of the
testator.1178
A fideicommissary substitution can never burden the legitime.1179

1173
Art. 868
1174
Art. 870
1175
Art. 857
1176
Tolentino
1177
Art. 858
1178
Art. 863
Requisites for a fideicommissary substitution:

270

Every fideicommissary substitution must be expressly made in order that it may be
valid.
The fiduciary shall be obliged to deliver the inheritance to the second heir, without
other deductions than those which arise from legitimate expenses, credits and
improvements, save in the case where the testator has provided otherwise.1180
The second heir shall acquire a right to the succession from the time of the testator's
death, even though he should die before the fiduciary. The right of the second heir shall pass
to his heirs.1181
A provision whereby the testator leaves to a person the whole or part of the
inheritance, and to another the usufruct, shall be valid. If he gives the usufruct to various
persons, not simultaneously, but successively, the provisions of Article 8631182 shall apply.1183

D. Conditional Testamentary Dispositions and Testamentary Dispositions
with a Term

The institution of an heir may be made conditionally, or for a certain purpose or
1184
cause.

The testator cannot impose any charge, condition, or substitution whatsoever upon
the legitimes prescribed in this Code. Should he do so, the same shall be considered as not
imposed.1185

Impossible conditions and those contrary to law or good customs shall be
considered as not imposed and shall in no manner prejudice the heir, even if the testator
should otherwise provide.1186

An absolute condition not to contract a first or subsequent marriage shall be
considered as not written unless such condition has been imposed on the widow or widower
by the deceased spouse, or by the latter's ascendants or descendants.

1. A fiduciary or first heir instituted entrusted with the obligation to preserve and to transmit to a
fideicommissary substitute or second heir the whole or part of the inheritance
2. Such substitution must not go beyond one degree from the heir originally instituted
3. The fiduciary or first heir and the second heir are living at the time of the death of the testator
4. The fideicommissary substitution must be expressly made
5. The fideicommissary substitution is imposed on the free portion of the estate and never on the
legitime
1179
Art. 864
1180
Art. 865
1181
Art. 866
1182
supra
1183
Art. 869
1184
Art. 871
1185
Art. 872
1186
Art. 873

271

Nevertheless, the right of usufruct, or an allowance or some personal prestation may
be devised or bequeathed to any person for the time during which he or she should remain
unmarried or in widowhood.1187

Any disposition made upon the condition that the heir shall make some provision in
his will in favor of the testator or of any other person shall be void.1188

Any purely potestative condition imposed upon an heir must be fulfilled by him as
soon as he learns of the testator's death.

This rule shall not apply when the condition, already complied with, cannot be
fulfilled again.1189

If the condition is casual or mixed, it shall be sufficient if it happen or be fulfilled at
any time before or after the death of the testator, unless he has provided otherwise.

Should it have existed or should it have been fulfilled at the time the will was
executed and the testator was unaware thereof, it shall be deemed as complied with.

If he had knowledge thereof, the condition shall be considered fulfilled only when it
is of such a nature that it can no longer exist or be complied with again.1190
A disposition with a suspensive term does not prevent the instituted heir from
acquiring his rights and transmitting them to his heirs even before the arrival of the term.1191

If the potestative condition imposed upon the heir is negative, or consists in not
doing or not giving something, he shall comply by giving a security that he will not do or
give that which has been prohibited by the testator, and that in case of contravention he will
return whatever he may have received, together with its fruits and interests.1192

If the heir be instituted under a suspensive condition or term, the estate shall be
placed under administration until the condition is fulfilled, or until it becomes certain that it
cannot be fulfilled, or until the arrival of the term.

The same shall be done if the heir does not give the security required in the
preceding article.1193

The appointment of the administrator of the estate mentioned in the preceding
article, as well as the manner of the administration and the rights and obligations of the
administrator shall be governed by the Rules of Court.1194

1187
Art. 874
1188
Art. 875
1189
Art. 876
1190
Art. 877
1191
Art. 878
1192
Art. 879
1193
Art. 880
1194
Art. 881

272

The statement of the object of the institution, or the application of the property left
by the testator, or the charge imposed by him, shall not be considered as a condition unless
it appears that such was his intention.

That which has been left in this manner may be claimed at once provided that the
instituted heir or his heirs give security for compliance with the wishes of the testator and
for the return of anything he or they may receive, together with its fruits and interests, if he
or they should disregard this obligation.1195

When without the fault of the heir, an institution referred to in the preceding article
cannot take effect in the exact manner stated by the testator, it shall be complied with in a
manner most analogous to and in conformity with his wishes.

If the person interested in the condition should prevent its fulfillment, without the
fault of the heir, the condition shall be deemed to have been complied with.1196

Conditions imposed by the testator upon the heirs shall be governed by the rules
established for conditional obligations in all matters not provided for by this Section.1197

The designation of the day or time when the effects of the institution of an heir shall
commence or cease shall be valid.

In both cases, the legal heir shall be considered as called to the succession until the
arrival of the period or its expiration. But in the first case he shall not enter into possession
of the property until after having given sufficient security, with the intervention of the
instituted heir.1198

1195
Art. 882
1196
Art. 883
1197
Art. 884
1198
Art. 885

273

E. Legitime

1. Definition

That part of the testator's property which he cannot dispose of because the law has
reserved it for certain heirs who are, therefore, called compulsory heirs.1199

2. Compulsory Heirs1200 and Various Combinations

(1) Legitimate children and descendants, with respect to their legitimate parents and
ascendants;

(2) In default of the foregoing, legitimate parents and ascendants, with respect to
their legitimate children and descendants;

(3) The widow or widower;

[(4) Acknowledged natural children, and natural children by legal fiction;]

(5) Other illegitimate children referred to in Article 287.

Compulsory heirs mentioned in Nos. 3, 4, and 5 are not excluded by those in Nos. 1
and 2; neither do they exclude one another.

In all cases of illegitimate children, their filiation must be duly proved.

The father or mother of illegitimate children of the three classes mentioned, shall
inherit from them in the manner and to the extent established by this Code.1201

The legitime of legitimate children and descendants consists of one-half of the
hereditary estate of the father and of the mother.

The latter may freely dispose of the remaining half, subject to the rights of
illegitimate children and of the surviving spouse as hereinafter provided.1202

1199
Art. 886
1200
Classes:
1.Primary – those who have precedence over and exclude other compulsory heirs
a. Legitimate children and descendants (legitimate), with respect to their legitimate parents and
ascendants
2.Secondary – those who succeed only in the absence of the primary heirs
a. Legitimate parents and ascendants (legitimate), with respect to their legitimate children and
descendants
3.Concurring – those who succeed together with the primary or the secondary compulsory heirs
a. Widow or widower (legitimate)
b. Illegitimate children and descendants (legitimate or illegitimate)
1201
Art. 887
1202
Art. 888

274

The legitime of legitimate parents or ascendants consists of one-half of the
hereditary estates of their children and descendants.

The children or descendants may freely dispose of the other half, subject to the
rights of illegitimate children and of the surviving spouse as hereinafter provided.1203

The legitime reserved for the legitimate parents shall be divided between them
equally; if one of the parents should have died, the whole shall pass to the survivor.

If the testator leaves neither father nor mother, but is survived by ascendants of
equal degree of the paternal and maternal lines, the legitime shall be divided equally between
both lines. If the ascendants should be of different degrees, it shall pertain entirely to the
ones nearest in degree of either line.1204

If only one legitimate child or descendant of the deceased survives, the widow or
widower shall be entitled to one-fourth of the hereditary estate. In case of a legal separation,
the surviving spouse may inherit if it was the deceased who had given cause for the same.

If there are two or more legitimate children or descendants, the surviving spouse
shall be entitled to a portion equal to the legitime of each of the legitimate children or
descendants.

In both cases, the legitime of the surviving spouse shall be taken from the portion
that can be freely disposed of by the testator.1205

If the testator leaves no legitimate descendants, but leaves legitimate ascendants, the
surviving spouse shall have a right to one-fourth of the hereditary estate.

This fourth shall be taken from the free portion of the estate.1206

If the testator leaves illegitimate children, the surviving spouse shall be entitled to
one-third of the hereditary estate of the deceased and the illegitimate children to another
third. The remaining third shall be at the free disposal of the testator.1207

The legitime of each of the acknowledged natural children and each of the natural
children by legal fiction shall consist of one-half of the legitime of each of the legitimate
children or descendants.

The legitime of an illegitimate child who is neither an acknowledged natural, nor a
natural child by legal fiction, shall be equal in every case to four-fifths of the legitime of an
acknowledged natural child.

1203
Art. 889
1204
Art. 890
1205
Art. 892
1206
Art. 893
1207
Art. 894

275

The legitime of the illegitimate children shall be taken from the portion of the estate
at the free disposal of the testator, provided that in no case shall the total legitime of such
illegitimate children exceed that free portion, and that the legitime of the surviving spouse
must first be fully satisfied.1208

Illegitimate children who may survive with legitimate parents or ascendants of the
deceased shall be entitled to one-fourth of the hereditary estate to be taken from the portion
at the free disposal of the testator.1209

When the widow or widower survives with legitimate children or descendants, and
acknowledged natural children, or natural children by legal fiction, such surviving spouse
shall be entitled to a portion equal to the legitime of each of the legitimate children which
must be taken from that part of the estate which the testator can freely dispose of.1210

If the widow or widower survives with legitimate children or descendants, and with
illegitimate children other than acknowledged natural, or natural children by legal fiction, the
share of the surviving spouse shall be the same as that provided in the preceding article.1211

When the widow or widower survives with legitimate parents or ascendants and with
illegitimate children, such surviving spouse shall be entitled to one-eighth of the hereditary
estate of the deceased which must be taken from the free portion, and the illegitimate
children shall be entitled to one-fourth of the estate which shall be taken also from the
disposable portion. The testator may freely dispose of the remaining one-eighth of the
estate.1212

If the only survivor is the widow or widower, she or he shall be entitled to one-half
of the hereditary estate of the deceased spouse, and the testator may freely dispose of the
other half.

If the marriage between the surviving spouse and the testator was solemnized in
articulo mortis, and the testator died within three months from the time of the marriage, the
legitime of the surviving spouse as the sole heir shall be one-third of the hereditary estate,
except when they have been living as husband and wife for more than five years. In the latter
case, the legitime of the surviving spouse shall be that specified in the preceding
paragraph.1213

When the testator dies leaving illegitimate children and no other compulsory heirs,
such illegitimate children shall have a right to one-half of the hereditary estate of the
deceased.

1208
Art. 895
1209
Art. 896
1210
Art. 897
1211
Art. 898
1212
Art. 899
1213
Art. 900

276

The other half shall be at the free disposal of the testator.1214

The rights of illegitimate children set forth in the preceding articles are transmitted
upon their death to their descendants, whether legitimate or illegitimate.1215

The legitime of the parents who have an illegitimate child, when such child leaves
neither legitimate descendants, nor a surviving spouse, nor illegitimate children, is one-half
of the hereditary estate of such illegitimate child. If only legitimate or illegitimate children are
left, the parents are not entitled to any legitime whatsoever. If only the widow or widower
survives with parents of the illegitimate child, the legitime of the parents is one-fourth of the
hereditary estate of the child, and that of the surviving spouse also one-fourth of the
estate.1216

Summary of Legitimes of Compulsory Heirs:

Surviving Legitimate Surviving Illegitimate Legitimate Illegitimate
relatives children & spouse children parents & parents
descendants ascendants
Legitimate ½ (divided
children alone by the # of
children)
1 legitimate child ½ ¼
surviving spouse

Legitimate ½ (divided Same as the
children by no. of share @ legit
Surviving spouse children) child

Legitimate ½ ½ of the
children share of @
Illegitimate legit child
children

1 legitimate child ½ ¼ ½ of the
surviving spouse (preferred) share of @
illegitimate legit child
children

2 or more ½ (divided Same as the ½ of the
legitimate by no. of share of @ share of @
children surviving children) legit child legit child
spouse
Illegitimate

1214
Art. 901
1215
Art. 902
1216
Art. 903

277

condition.1218 1217 Art. Neither can he impose upon the same any burden. 904 1218 Art. except in cases expressly specified by law. encumbrance. or substitution of any kind whatsoever. and the latter may claim the same upon the death of the former.1217 Every renunciation or compromise as regards a future legitime between the person owing it and his compulsory heirs is void. of Surviving spouse children) Surviving spouse ½ or 1/3 if alone marriage in articulo mortis Illegitimate ½ parents alone Illegitimate ¼ ¼ parents Surviving spouse The testator cannot deprive his compulsory heirs of their legitime. 905 278 . but they must bring to collation whatever they may have received by virtue of the renunciation or compromise. of children) Illegitimate 1/3 1/3 (divided children by no.children Legitimate ½ parents alone Legitimate ¼ ½ parents Illegitimate children Legitimate ¼ ½ parents and Surviving spouse Legitimate 1/8 ¼ ½ parents Surviving spouse Illegitimate children Illegitimate ½ (divided children alone by no.

without any distinction whatever. shall be charged to his legitime. it shall not suffer any reduction until the latter have been applied in full to the payment of the legitime. which shall not include those imposed in the will. 909 1223 Art. Should they exceed the portion that can be freely disposed of. the devises or legacies made in the will. 907 1221 Art.1221 Donations given to children shall be charged to their legitime. 910 279 . To the net value of the hereditary estate. 906 1220 Art.1223 After the legitime has been determined in accordance with the three preceding articles. If the testator has directed that a certain devise or legacy be paid in preference to others. shall be added the value of all donations by the testator that are subject to collation. insofar as they may be inofficious or excessive. Insofar as they may be inofficious or may exceed the disposable portion. they shall be reduced in the manner prescribed.1219 Testamentary dispositions that impair or diminish the legitime of the compulsory heirs shall be reduced on petition of the same. reducing or annulling. at the time he made them. Donations made to strangers shall be charged to that part of the estate of which the testator could have disposed by his last will. Any compulsory heir to whom the testator has left by any title less than the legitime belonging to him may demand that the same be fully satisfied. (2) The reduction of the devises or legacies shall be pro rata. deducting all debts and charges.1222 Donations which an illegitimate child may have received during the lifetime of his father or mother. they shall be reduced according to the rules. 908 1222 Art. the value of the property left at the death of the testator shall be considered. 1219 Art. if necessary.1220 To determine the legitime. the reduction shall be made as follows: (1) Donations shall be respected as long as the legitime can be covered.

1229 1224 Art. The devisee who is entitled to a legitime may retain the entire property. the property shall be sold at public auction at the instance of any one of the interested parties.1227 3.1225 If the heirs or devisees do not choose to avail themselves of the right granted by the preceding article. and in a contrary case.1224 If the devise subject to reduction should consist of real property. whose value may be considered greater than that of the disposable portion. 280 . should the latter not make use of it. 911 1225 Art. it shall go to the devisee if the reduction does not absorb one-half of its value. which cannot be conveniently divided. provided its value does not exceed that of the disposable portion and of the share pertaining to him as legitime. to the compulsory heirs. is obliged to reserve such property as he may have acquired by operation of law for the benefit of relatives who are within the third degree and who belong to the line from which said property came. Reserva Troncal1228 The reservation by virtue of which an ascendant who inherits from his descendant any property which the latter may have acquired by gratuitous title from another ascendant. 914 1228 Requisites 1) that the property was acquired by a descendant from an ascendant or from a brother or sister by gratuitous title 2) that said descendant died without an issue 3) that the property is inherited by another ascendant by operation of law 4) that there are relatives within the 3rd degree belonging to the line from which said property came 1229 Art. but the former and the latter shall reimburse each other in cash for what respectively belongs to them. any heir or devisee who did not have such right may exercise it.1226 The testator may devise and bequeath the free portion as he may deem fit. the compulsory heirs may choose between complying with the testamentary provision and delivering to the devisee or legatee the part of the inheritance of which the testator could freely dispose. 913 1227 Art. or a brother or sister. 912 1226 Art. (3) If the devise or legacy consists of a usufruct or life annuity. 891 It constitutes as an exception to both the system of legitime and the order of intestate succession.

deprives a compulsory heir of his right to the legitime. a. (6) Maltreatment of the testator by word or deed. legitimate as well as illegitimate: (1) A child or descendant has been found guilty of an attempt against the life of the testator. Disinheritance for cause Sufficient causes for the disinheritance of children and descendants. stating the cause in the will itself 5) The cause must be certain and true. intimidation. 4. 919 281 .1231 1230 Requisites for a valid disinheritance: 1) Heir disinherited must be designated by name or in such a manner as to leave no room for doubt as to who is intended 2) It must be for a cause designated by law 3) It must be made in valid will 4) It must be made expressly. (4) A child or descendant by fraud. descendants. (2) A child or descendant has accused the testator of a crime for which the law prescribes imprisonment for six years or more. (8) Conviction of a crime which carries with it the penalty of civil interdiction. and must be proved by the interested heir if the person disinherited should deny it 6) It must unconditional 7) It must be total 1231 Art. (5) Refusal without justifiable cause to support the parent or ascendant who disinherits such child or descendant. Disinheritance1230 It is the act by which the testator. for just cause. (3) A child or descendant has been convicted of adultery or concubinage with the spouse of the testator. by the child or descendant. or ascendants. (7) When a child or descendant leads a dishonorable or disgraceful life. violence. his or her spouse. if the accusation has been found groundless. or undue influence causes the testator to make a will or to change one already made.

intimidation. violence. found groundless. false 3 Causes * * * * testator/decedent to make will or change one by fraud. Summary of causes of disinheritance: GROUNDS FOR CHILDREN/ PARENTS/ SPOUSE UNWORTHINESS DISINHERITANCE DESCENDANTS ASCENDANTS 1 Guilty/convicted of * * * * attempt against life of testator/spouse/ ascendant/descenda nt 2 Accused * * * * testator/decedent of crime punishable by imprisonment of more than 6 years. or undue influence 4 Unjustified refusal * * * to support testator 5 Convicted of * * * adultery or concubinage with spouse of testator/decedent 6 Maltreatment of * 282 .

unless authorities have already taken action 283 . testator by word and deed 7 Leading a * dishonorable or disgraceful life 8 Conviction of crime * which carries penalty of civil interdiction 9 Abandonment of * * children or inducing children to live corrupt and immoral life or attempted against virtue 10 Loss of parental * * authority 11 Attempt by one * parent against life of the other unless there is reconciliation between parents 12 Spouses given cause * for legal separation 13 Failure to report * violent death of decedent within one month.

1234 5.1233 b. 924 284 . violence. Legacies and Devisees All things and rights which are within the commerce of man maybe bequeathed or devised.1232 (ii) Rights of descendants of person disinherited The children and descendants of the person disinherited shall take his or her place and shall preserve the rights of compulsory heirs with respect to the legitime. 923 1234 Art. but the devises and legacies and other testamentary dispositions shall be valid to such extent as will not impair the legitime.1235 A testator may charge with legacies and devises not only his compulsory heirs but also the legatees and devisees. but the disinherited parent shall not have the usufruct or administration of the property which constitutes the legitime.14 Force. 1232 Art. and renders ineffectual any disinheritance that may have been made. Disinheritance without cause Shall annul the institution of heirs insofar as it may prejudice the person disinherited. 918 1235 Art. * intimidation or undue influence to prevent another from making a will or revoking one already made or who supplants or alters the latter’s will 15 Falsifies or forges a * supposed will of the decedent (i) Reconciliation A subsequent reconciliation between the offender and the offended person deprives the latter of the right to disinherit. 922 1233 Art.

afterwards becomes his. 928 1240 Art. they shall be solidarily liable for the loss or destruction of a thing devised or bequeathed. Should he not charge anyone in particular. but if the owner of the thing refuses to alienate the same.1236 When the testator charges one of the heirs with a legacy or devise. the heir upon whom the obligation is imposed or the estate must acquire it and give the same to the legatee or devisee. the legacy or devise shall be understood limited to such part or interest. 930 1242 Art. unless the testator expressly declares that he gives the thing in its entirety. But if the thing bequeathed. the heir or the estate shall only be obliged to give the just value of the thing. all shall be liable in the same proportion in which they may inherit. even though only one of them should have been negligent. if the thing is indeterminate and is indicated only by its kind. by whatever title.1239 If the testator. the legacy or devise shall be valid to that extent. The compulsory heirs shall not be liable for the charge beyond the amount of the free portion given them.1240 The legacy or devise of a thing belonging to another person is void. he alone shall be bound. 929 1241 Art.1238 The heir who is bound to deliver the legacy or devise shall be liable in case of eviction.1237 If two or more heirs take possession of the estate. or legatee owns only a part of. if the testator erroneously believed that the thing pertained to him.1242 The legacy or devise of a thing which at the time of the execution of the will already belonged to the legatee or devisee shall be ineffective. or an interest in the thing bequeathed. though not belonging to the testator when he made the will. 925 1237 Art.1241 If the testator orders that a thing belonging to another be acquired in order that it be given to a legatee or devisee. heir. 931 1243 Art. The latter shall be liable for the charge only to the extent of the value of the legacy or the devise received by them. 932 285 . 927 1239 Art. or demands an excessive price therefor. even though another person may have some interest therein.1243 1236 Art. 926 1238 Art. If the testator expressly orders that the thing be freed from such interest or encumbrance. the disposition shall take effect.

unless the contrary intention appears. 933 1245 Art. passes with it to the legatee or devisee.1246 The legacy referred to shall lapse if the testator. Any other charge. should bring an action against the debtor for the payment of his debt. 1244 Art. 937 286 . The legacy to the debtor of the thing pledged by him is understood to discharge only the right of pledge. but not subsequent ones. the legacy or devise shall be without effect. In the second case. In the first case. but if it has been acquired by onerous title he can demand reimbursement from the heir or the estate. In both cases. The same rule applies when the thing is pledged or mortgaged after the execution of the will. should he request one.1245 The legacy of a credit against a third person or of the remission or release of a debt of the legatee shall be effective only as regards that part of the credit or debt existing at the time of the death of the testator. the estate shall comply with the legacy by assigning to the legatee all rights of action it may have against the debtor. with which the thing bequeathed is burdened.1248 A legacy or devise made to a creditor shall not be applied to his credit. even if such payment should not have been effected at the time of his death. If the legatee or devisee acquires it gratuitously after such time. perpetual or temporary. 935 1247 Art. the estate is obliged to pay the debt. 934 1246 Art.1247 A generic legacy of release or remission of debts comprises those existing at the time of the execution of the will. he can claim nothing by virtue of the legacy or devise. the legacy shall comprise all interests on the credit or debt which may be due the testator at the time of his death. unless the testator so expressly declares. If the thing bequeathed belonged to the legatee or devisee at the time of the execution of the will. after having made it. 936 1248 Art.1244 If the testator should bequeath or devise something pledged or mortgaged to secure a recoverable debt before the execution of the will. even though it may have subsequently alienated by him. by giving the legatee an acquittance.

save such modifications as may appear from the intention expressed by the testator. 943 287 . 942 1254 Art. except as herein provided. the disposition shall be considered as not written. this right shall pass to the respective heirs. legatee or devisee. of the credit or of the legacy or devise. 940 1252 Art. the provisions of this Code regulating obligations of the same kind shall be observed. 939 1251 Art. the choice is presumed to be left to the heir upon whom the obligation to give the legacy or devise may be imposed. dies before making it.1253 If the heir. his right shall pass to his heirs. the creditor shall have the right to collect the excess. the former may give or the latter may choose whichever he may prefer. in case it has been granted him. 938 1250 Art. or to the legatee or devisee.1249 If the testator orders the payment of what he believes he owes but does not in fact owe. Once made. The right of choice shall belong to the executor or administrator who shall comply with the legacy by the delivery of a thing which is neither of inferior nor of superior quality. In the latter case.1250 In alternative legacies or devises. The foregoing provisions are without prejudice to the fulfillment of natural obligations. the excess is not due. if any. unless a contrary intention appears. 1254 1249 Art. A devise of indeterminate real property shall be valid only if there be immovable property of its kind in the estate.1252 Whenever the testator expressly leaves the right of choice to the heir. who may have been given the choice. the choice is irrevocable.1251 A legacy of generic personal property shall be valid even if there be no things of the same kind in the estate. legatee or devisee cannot make the choice. 941 1253 Art. In the alternative legacies or devises. If as regards a specified debt more than the amount thereof is ordered paid. or the executor or administrator of the estate if no particular heir is so obliged. If the heir. but a choice once made shall be irrevocable.

or beyond the age of majority in order that the legatee may finish some professional. the legatee or devisee shall respect such right until it is legally extinguished.1258 If the legacy or devise is of a specific and determinate thing pertaining to the testator. or weekly amount is bequeathed. the thing bequeathed shall be at the risk of the legatee or devisee. If the testator has not fixed the amount of such legacies. From the moment of the testator's death. bear its loss or deterioration. but not the income which was due and unpaid before the latter's death. but is generic or of quantity. it shall be fixed in accordance with the social standing and the circumstances of the legatee and the value of the estate. 946 1258 Art. if the testator has not otherwise provided. monthly. or unborn offspring of animals. 945 1257 Art. A legacy for education lasts until the legatee is of age. as well as any growing fruits. even though the legatee should die before the expiration of the period which has commenced. the legatee or devisee acquires the ownership thereof upon the death of the testator. 949 288 .1256 If the thing bequeathed should be subject to a usufruct. or uncollected income. who shall.1255 If a periodical pension. If the testator or during his lifetime used to give the legatee a certain sum of money or other things by way of support. unless it be markedly disproportionate to the value of the estate. such payment shall not be returned. A legacy for support lasts during the lifetime of the legatee. and shall be benefited by its increase or improvement.1260 1255 Art. its fruits and interests from the time of the death of the testator shall pertain to the legatee or devisee if the testator has expressly so ordered. therefore. vocational or general course. the same amount shall be deemed bequeathed. and transmits it to his heirs. and for the following ones which shall be due at the beginning of each period. the legatee may petition the court for the first installment upon the death of the testator. 944 1256 Art.1257 The legatee or devisee acquires a right to the pure and simple legacies or devises from the death of the testator. or a certain annual.1259 If the bequest should not be of a specific and determinate thing. 947 1259 Art. without prejudice to the responsibility of the executor or administrator. provided he pursues his course diligently. 948 1260 Art.

(6) All others pro rata. or the executor or administrator of the estate.1261 The thing bequeathed shall be delivered with all its accessories and accessories and in the condition in which it may be upon the death of the testator. Legacies of money must be paid in cash. determinate thing which forms a part of the estate. leaving several heirs. or of the executor or administrator of the estate should he be authorized by the court to deliver it. (5) Legacies or devises of a specific.1263 The legatee or devisee cannot take possession of the thing bequeathed upon his own authority.1264 The legatee or devisee cannot accept a part of the legacy or devise and repudiate the other. If the estate should not be sufficient to cover all the legacies or devises. 951 1263 Art. cannot renounce the onerous one and accept the other. must deliver the very thing bequeathed if he is able to do so and cannot discharge this obligation by paying its value. some of the latter may accept and the others may repudiate the share respectively belonging to them in the legacy or devise. even though the heir or the estate may not have any. he shall 1261 Art.1262 The heir. 950 1262 Art. but shall request its delivery and possession of the heir charged with the legacy or devise. 952 1264 Art. 954 289 . 953 1265 Art. but without prejudice to the legitime. If both are onerous or gratuitous. one of which is onerous. The expenses necessary for the delivery of the thing bequeathed shall be for the account of the heir or the estate. (4) Legacies for education. charged with a legacy or devise. if the latter be onerous. Should he die before having accepted the legacy or devise.1265 The legatee or devisee of two legacies or devises. (2) Legacies or devises declared by the testator to be preferential. (3) Legacies for support. their payment shall be made in the following order: (1) Remuneratory legacies or devises.

1269 A disposition made in general terms in favor of the testator's relatives shall be understood to be in favor of those nearest in degree. (3) If the thing bequeathed is totally lost during the lifetime of the testator. 957 1269 Art. or renounce the latter and accept the former.be free to accept or renounce both. it being understood that in the latter case the legacy or devise shall be without effect only with respect to the part thus alienated.1268 A mistake as to the name of the thing bequeathed or devised. Any compulsory heir who is at the same time a legatee or devisee may waive the inheritance and accept the legacy or devise. or waive or accept both. (2) If the testator by any title or for any cause alienates the thing bequeathed or any part thereof. or after his death without the heir's fault.1270 1266 Art. except in cases of substitution and of the right of accretion. it shall be merged into the mass of the estate. 958 1270 Art. the legatee or devisee must either accept or renounce both. is of no consequence. Nevertheless. unless the reacquisition shall have been effected by virtue of the exercise of the right of repurchase. or to renounce either. 959 290 .1266 If the legatee or devisee cannot or is unwilling to accept the legacy or devise. 955 1267 Art. the legacy or devise shall not thereafter be valid. or if the legacy or devise for any reason should become ineffective. 956 1268 Art. the person obliged to pay the legacy or devise shall be liable for eviction if the thing bequeathed should not have been determinate as to its kind. But if the testator intended that the two legacies or devises should be inseparable from each other. even if it be by reason of nullity of the contract. If after the alienation the thing should again belong to the testator.1267 The legacy or devise shall be without effect: (1) If the testator transforms the thing bequeathed in such a manner that it does not retain either the form or the denomination it had. in accordance with the provisions of Article 928. if it is possible to identify the thing which the testator intended to bequeath or devise.

961 1275 Should brother and sisters of the full blood survive together with brothers and sisters of the half blood. 7. or dispose of all the property belonging to the testator. General Provisions Legal or intestate succession1271 takes place: 1. there being no substitution. Rule of Equal Division – the relatives who are in the same degree shall inherit in equal shares 1272 Legal succession shall take place only with respect to the property of which the testator has not disposed 1273 Art. subject to the provisions of Article 10061275 with respect to relatives of the full and half blood. 962 291 . Rule of Proximity – the relative nearest in degree excludes the farther one 2. If the suspensive condition attached to the institution of the heir does not happen or is not fulfilled 6. 2. 1276 Should there be more than one of equal degree belonging to the same line they shall divide the inheritance per capita. the former shall be entitled to a share double that of the latter. 1277 Art.III.1276 concerning division between the paternal and maternal lines. saving the right of representation when it properly takes place. Relatives in the same degree shall inherit in equal shares. and no right of accretion takes place 8.1277 1271 Fundamental underlying principles in legal or intestate succession: 1. par. When the will does not institute an heir to. one-half shall go to the paternal and the other half to the maternal ascendants. Legal or Intestate Succession A. If a person dies without a will 2. the relative nearest in degree excludes the more distant ones. In each line the division shall be made per capita. except in cases provided in the Code. When the heir instituted is incapable of succeeding.1274 In every inheritance. the law vests the inheritance in the legitimate and illegitimate relatives of the deceased. If a person dies with a will which has subsequently lost its validity 4. If a person dies with a void will 3.1273 In default of testamentary heirs. should they be of different lines but of equal degree. If the heir dies before the testator.1272 5. and of Article 987. in the surviving spouse. If the heir repudiates the inheritance. 960 1274 Art. and in the State.

1282 If there are several relatives of the same degree. 963 1279 Art. the child is one degree removed from the parent. a person is two degrees removed from his brother. 964 1280 Art. and three from the great- grandparent. Relationship Proximity of relationship is determined by the number of generations. A collateral line is that constituted by the series of degrees among persons who are not ascendants and descendants.1283 1278 Art. The former unites the head of the family with those who descend from him. ascent is made to the common ancestor. save the right of representation when it should take place.1281 Full blood relationship is that existing between persons who have the same father and the same mother. which may be either direct or collateral. four from his first cousin. but not the same father. and one or some of them are unwilling or incapacitated to succeed. excluding the progenitor. his portion shall accrue to the others of the same degree. two from the grandfather. three from his uncle.1278 A series of degrees forms a line. or the same mother. but not the same mother. In the collateral line. and so forth.1279 The direct line is either descending or ascending. who is the brother of his father.1280 In the line. 968 292 . A direct line is that constituted by the series of degrees among ascendants and descendants. as many degrees are counted as there are generations or persons. Half-blood relationship is that existing between persons who have the same father. 967 1283 Art. In the direct line. 1. ascent is made to the common ancestor and then descent is made to the person with whom the computation is to be made. The latter binds a person with those from whom he descends. Thus. 966 1282 Art. 965 1281 Art. Thus. Each generation forms a degree. but who come from a common ancestor.

if he were living or could inherit. 969 1285 Art. should there be several. they shall inherit from the latter by representation. it is necessary that the representative himself be capable of succeeding the decedent.1291 Heirs who repudiate their share may not be represented. 971 1287 Art. whether they be of the full or half blood. the division of the estate shall be made per stirpes. 974 1290 Art. and acquires the rights which the latter would have if he were living or if he could have inherited. those of the following degree shall inherit in their own right and cannot represent the person or persons repudiating the inheritance.1289 When children of one or more brothers or sisters of the deceased survive. In the collateral line. but never in the ascending. The representative does not succeed the person represented but the one whom the person represented would have succeeded.1285 The representative is called to the succession by the law and not by the person represented. 975 1291 Art. If the inheritance should be repudiated by the nearest relative. Right of Representation Representation is a right created by fiction of law.1288 Whenever there is succession by representation. But if they alone survive. or by all the nearest relatives called by law to succeed.1284 2. 970 1286 Art. 972 1288 Art.1286 The right of representation takes place in the direct descending line. it takes place only in favor of the children of brothers or sisters. 973 1289 Art. by virtue of which the representative is raised to the place and the degree of the person represented.1292 1284 Art. if they survive with their uncles or aunts. should there be one only. 977 293 . 976 1292 Art.1290 A person may represent him whose inheritance he has renounced. in such manner that the representative or representatives shall not inherit more than what the person they represent would inherit. they shall inherit in equal portions.1287 In order that representation may take place.

to the exclusion of collateral relatives. 981 1297 Art.1297 If illegitimate children survive with legitimate children. shall inherit in equal shares. his parents and relatives by consanguinity and not by adoption. if living.1298 In case of the death of an adopted child.1296 The grandchildren and other descendants shall inherit by right of representation. 986 294 .1299 In default of legitimate children and descendants of the deceased. 979 1295 Art.1293 Legitimate children and their descendants succeed the parents and other ascendants. Should one only of them survive. dividing the inheritance in equal shares. B. to the descending direct line. 1293 Art. and even if they should come from different marriages. the former shall inherit in their own right. the shares of the former shall be in the proportions prescribed by article 895. survive. leaving several heirs.1300 The father and mother. 980 1296 Art. 983 1299 Art. 985 1301 Art.1295 Should children of the deceased and descendants of other children who are dead. the portion pertaining to him shall be divided among the latter in equal portions. 982 1298 Art. An adopted child succeeds to the property of the adopting parents in the same manner as a legitimate child. he or she shall succeed to the entire estate of the 1301 child. shall be his legal heirs. leaving no children or descendants. Order of Intestate Succession Succession pertains. 984 1300 Art. 978 1294 Art. and the latter by right of representation. and if any one of them should have died. in the first place. the ascendants nearest in degree shall inherit. his parents and ascendants shall inherit from him.1294 The children of the deceased shall always inherit from him in their own right. without distinction as to sex or age. In default of the father and mother.

and if the child's filiation is duly proved as to both parents. In each line the division shall be made per capita. there should survive descendants of another illegitimate child who is dead. under Article 1001. Should there be more than one of equal degree belonging to the same line they shall divide the inheritance per capita.1305 If legitimate ascendants are left. and illegitimate children and their descendants. 994 1310 Art. taking one-half of the estate.1304 The hereditary rights granted by the two preceding articles to illegitimate children shall be transmitted upon their death to their descendants.1302 In the absence of legitimate descendants or ascendants. the former shall succeed in their own right and the latter by right of representation. 991 1307 Art. 990 1306 Art. 988 1304 Art. the surviving spouse shall inherit the entire estate.1310 1302 Art. without prejudice to the rights of brothers and sisters. nephews and nieces. nor shall such children or relatives inherit in the same manner from the illegitimate child.1306 An illegitimate child has no right to inherit ab intestato from the legitimate children and relatives of his father or mother. 993 1309 Art. should they be of different lines but of equal degree. the illegitimate children shall divide the inheritance with them. who shall inherit by right of representation from their deceased grandparent. his father or mother shall succeed to his entire estate. she or he shall inherit one-half of the estate.1308 In default of the father or mother. If the widow or widower should survive with brothers and sisters. an illegitimate child shall be succeeded by his or her surviving spouse who shall be entitled to the entire estate. should there be any. nephews and nieces. whether legitimate or illegitimate.1309 In the absence of legitimate descendants and ascendants.1303 If. one- half shall go to the paternal and the other half to the maternal ascendants. together with illegitimate children. and the latter the other half. they shall inherit from him share and share alike. 989 1305 Art. the illegitimate children shall succeed to the entire estate of the deceased. either legitimate or illegitimate. who are both living.1307 If an illegitimate child should die without issue. 992 1308 Art. whatever be the number of the ascendants or of the illegitimate children. 995 295 . 987 1303 Art.

1315 Should brothers and sisters or their children survive with the widow or widower. the collateral relatives shall succeed to the entire estate of the deceased in accordance with the following articles. if the surviving spouse gave cause for the separation. whether legitimate or illegitimate. If a widow or widower and legitimate children or descendants are left. illegitimate children.1314 If legitimate ascendants. such widow or widower shall be entitled to the same share as that of a legitimate child. 997 1313 Art. and illegitimate children are left. and the legitimate parents or ascendants to the other half. and the latter per stirpes. the ascendants shall be entitled to one-half of the inheritance. the surviving spouse shall be entitled to one-half of the estate. who are the children of the descendant's brothers and sisters of the full blood. he or she shall not have any of the rights granted in the preceding articles. the former shall inherit per capita. whether legitimate or illegitimate. the latter shall be entitled to one-half of the inheritance and the brothers and sisters or their children to the other half. ascendants. such widow or widower shall be entitled to one-half of the inheritance.1316 In case of a legal separation. and the other half shall be divided between the surviving spouse and the illegitimate children so that such widow or widower shall have one-fourth of the estate. the surviving spouse. 1002 1318 Art. 998 1314 Art. and the illegitimate children the other fourth. 1000 1316 Art. 1005 296 . and the illegitimate children or their descendants.1312 If a widow or widower survives with illegitimate children. 996 1312 Art. 1001 1317 Art.1317 If there are no descendants. 1004 1320 Art.1319 Should brothers and sisters survive together with nephews and nieces. they shall inherit in equal shares.1313 When the widow or widower survives with legitimate children or their descendants and illegitimate children or their descendants.1320 1311 Art. or a surviving spouse. 1003 1319 Art. the surviving spouse has in the succession the same share as that of each of the children. to the other half.1311 When the widow or widower survives with legitimate parents or ascendants.1318 Should the only survivors be brothers and sisters of the full blood. 999 1315 Art.

1322 Children of brothers and sisters of the half-blood shall succeed per capita or per stirpes.1325 In default of persons entitled to succeed. the State shall inherit the whole estate. the former shall be entitled to a share double that of the latter. in accordance with the rules laid down for brothers and sisters of the full blood. at the instance of an interested party. are the only survivors. all shall inherit in equal shares without distinction as to the origin of the property. 1011 1327 Art. 1010 1326 Art.1326 In order that the State may take possession of the property mentioned in the preceding article. Such estate shall be for the benefit of public schools. The court. the whole estate shall be assigned to the respective municipalities or cities where the same is located. 1012 1328 Art.1323 Should there be neither brothers nor sisters nor children of brothers or sisters. so that only the income from the property shall be used. 1009 1325 Art. the pertinent provisions of the Rules of Court must be observed. in which the same is situated. and the real estate to the municipalities or cities. the other collateral relatives shall succeed to the estate.1321 In case brothers and sisters of the half blood. 1008 1324 Art. Should brother and sisters of the full blood survive together with brothers and sisters of the half blood.1328 1321 Art. If the deceased never resided in the Philippines.1324 The right to inherit ab intestato shall not extend beyond the fifth degree of relationship in the collateral line. some on the father's andsome on the mother's side. and public charitable institutions and centers. respectively. in such municipalities or cities. the personal property shall be assigned to the municipality or city where the deceased last resided in the Philippines. 1013 297 . The latter shall succeed without distinction of lines or preference among them by reason of relationship by the whole blood. 1006 1322 Art.1327 After the payment of debts and charges. or on its own motion. 1007 1323 Art. The court shall distribute the estate as the respective needs of each beneficiary may warrant. may order the establishment of a permanent trust.

illegitimate siblings. No one Surviving spouse and Legitimate collaterals and state Illegitimate children descendants Illegitimate children Illegitimate parents. such person shall be entitled to the possession of the same. nieces nephews. If a person legally entitled to the estate of the deceased appears and files a claim hereto with the court within five (5) years from the date the property was delivered to the State. nephews. nieces 6 Legitimate collateral State State relatives 7 State Concurrence in legal or intestate succession INTESTATE HEIR EXCLUDES EXCLUDED BY CONCURS WITH Legitimate children Ascendants. siblings. the municipality or city shall be accountable to him for such part of the proceeds as may not have been lawfully spent. nieces nephews. 1014 298 . adoptive parents 4 Surviving spouse surviving spouse surviving spouse 5 Legitimate siblings. No one Surviving spouse 1329 Art. or if sold.1329 Order of legal or intestate succession: Legitimate child Illegitimate child Adopted Child 1 Legitimate child and legitimate child and legitimate child and legitimate descendants legitimate descendants legitimate descendants 2 Legitimate parents and illegitimate children and illegitimate children and legitimate ascendants legitimate or illegitimate legitimate or illegitimate descendants descendants 3 Illegitimate children and illegitimate parents legitimate or illegitimate legitimate or illegitimate parents and legitimate descendants ascendants.

Legitimate parents and illegitimate parents Other collaterals Collateral remoter in Legitimate children Collaterals in the within 5th degree degree and state Illegitimate children same degree Legitimate parents Illegitimate parents and Surviving spouse State No one Everyone No one A more detailed summary of intestate shares: 1. One legitimate child and surviving spouse INTESTATE HEIR SHARE AS LEGITIME SHARE AS FREE TOTAL INTESTATE DISPOSAL SHARE Legitimate child ½ ½ 299 .and Descendants collaterals and state Legitimate children and legitimate parents Legitimate parents Collaterals and state Legitimate children Illegitimate children and legitimate and surviving spouse ascendants Illegitimate parents Collaterals and state Legitimate children Surviving spouse and illegitimate children Surviving spouse Collaterals other than No one Legitimate children siblings. Legitimate children and legitimate descendants alone INTESTATE HEIR SHARE AS LEGITIME SHARE AS FREE TOTAL INTESTATE DISPOSAL SHARE Legitimate children ½ ½ 1 Total ½ ½ 1 2. Surviving spouse nieces and state illegitimate children. nephews and Illegitimate children nieces Legitimate parents and Illegitimate parents Siblings. nephews All other collaterals Legitimate children.

of 1 children children 4. Legitimate children and illegitimate children INTESTATE HEIR SHARE AS LEGITIME SHARE AS FREE TOTAL INTESTATE DISPOSAL SHARE Legitimate children ½ Remaining portion of Whole estate divided estate after paying by the ratio of 2:1 for legitimes each legitimate child as compared to the illegitimate child Illegitimate children ½ share of @ Legitimes to be 1 for @ illegitimate legitimate child divided by the ratio child provided that of 2 for @ legitimate legitimes wouldn’t be child. of Varies on no. of children plus legitimate child divided equally the surviving spouse between total no. 1 for @ impaired illegitimate child Total Varies on no.Surviving spouse ¼ ¼ ½ Total ¾ ¼ 1 3. of (see above) children plus the surviving spouse Total Varies on no. of children children 300 . Legitimate children and surviving spouse INTESTATE HEIR SHARE AS LEGITIME SHARE AS FREE TOTAL INTESTATE DISPOSAL SHARE Legitimate children ½ Remaining portion of Whole estate divided estate after paying equally between total legitimes number of children plus the surviving spouse Surviving spouse Same as share of @ Legitimes to be No. of Varies on no.

5. illegitimate child. if any after by the ratio of 2:1 for paying legitimes to be @ legitimate child divided by the ratio and illegitimate child of 2 for @ legitimate respectively child Illegitimate children ½ share of @ legit 1 for @ illegitimate 1 for @ illegitimate child child (see above) child (see above) Surviving spouse ¼ Same share as a Same share as a legitimate child. of illegitimate no. Legitimate children. of illegitimate no. of illegitimate children children 301 . respectively Illegitimate child ½ share of @ 1 for @ illegitimate 1 for @ illegitimate legitimate child child (see above) child Surviving spouse ¼ Same share as a Legitimes wouldn’t legitimate child be impaired TOTAL Varies depending on Varies depending on 1 no. One legitimate child. and surviving spouse INTESTATE HEIR SHARE AS LEGITIME SHARE AS FREE TOTAL INTESTATE DISPOSAL SHARE Legitimate child ½ Remaining portion of Whole estate divided estate after paying by the ratio of 2 @ legitimes to be legitimate child divided by the ratio of 2:1 for @ legitimate child and @ illegitimate child. of illegitimate children children 6. provided legitimes provided legitimes are not impaired are not impaired Total Varies depending on Varies depending on 1 no. illegitimate children and surviving spouse INTESTATE HEIR SHARE AS LEGITIME SHARE AS FREE TOTAL INTESTATE DISPOSAL SHARE Legitimate children ½ Remaining portion of Whole estate divided estate. legitimate child.

surviving spouse and illegitimate children INTESTATE HEIR SHARE AS LEGITIME SHARE AS FREE TOTAL INTESTATE DISPOSAL SHARE Legitimate parents ½ ½ Surviving spouse 1/8 1/8 ¼ Illegitimate children ¼ ¼ Total 7/8 1/8 1 11. Illegitimate children alone INTESTATE HEIR SHARE AS LEGITIME SHARE AS FREE TOTAL INTESTATE DISPOSAL SHARE Illegitimate children ½ ½ 1 alone Total ½ ½ 1 302 . Legitimate parents and surviving spouse INTESTATE HEIR SHARE AS LEGITIME SHARE AS FREE TOTAL INTESTATE DISPOSAL SHARE Legitimate parents ½ ½ Surviving spouse ¼ ¼ ½ Total ¾ ¼ 1 10. Legitimate parents alone INTESTATE HEIR SHARE AS LEGITIME SHARE AS FREE TOTAL INTESTATE DISPOSAL SHARE Legitimate parents ½ ½ 1 Total ½ ½ 1 8. 7. Legitimate parents and illegitimate children INTESTATE HEIR SHARE AS LEGITIME SHARE AS FREE TOTAL INTESTATE DISPOSAL SHARE Legitimate parents ½ ½ Illegitimate children ¼ ¼ ½ Total ¾ ¼ 1 9. Legitimate parents.

Illegitimate parents alone INTESTATE HEIR SHARE AS LEGITIME SHARE AS FREE TOTAL INTESTATE DISPOSAL SHARE Illegitimate parents ½ ½ 1 Total ½ ½ 1 15. nephews and nieces alone INTESTATE HEIR SHARE AS LEGITIME SHARE AS FREE TOTAL INTESTATE DISPOSAL SHARE Siblings. nephews. Surviving spouse INTESTATE HEIR SHARE AS LEGITIME SHARE AS FREE TOTAL INTESTATE DISPOSAL SHARE Surviving spouse ½ or 1/3 ½ or 1/3 1 Total ½ or 1/3 ½ or 1/3 1 14. Illegitimate children and surviving spouse INTESTATE HEIR SHARE AS LEGITIME SHARE AS FREE TOTAL INTESTATE DISPOSAL SHARE Illegitimate children 1/3 1/6 ½ Surviving spouse 1/3 1/6 ½ Total 2/3 1/3 1 13. ½ ½ 1 nieces TOTAL ½ ½ 1 303 . 12. Illegitimate parents and surviving spouse INTESTATE HEIR SHARE AS LEGITIME SHARE AS FREE TOTAL INTESTATE DISPOSAL SHARE Illegitimate parents ¼ ¼ ½ Surviving spouse ¼ ¼ ½ Total ½ ½ 1 16. Siblings.

17. ½ ½ nieces Total ½ ½ 1 304 . siblings. nephews and nieces INTESTATE HEIR SHARE AS LEGITIME SHARE AS FREE TOTAL INTESTATE DISPOSAL SHARE Surviving spouse ½ ½ Siblings. nephews. Surviving spouse.

any provision made by the ward in favor of the guardian when the latter is his ascendant. devise or legacy. community. or any one claiming under such witness. Provisions Common to Testate and Intestate Succession A. surgeon. or co-legatees.IV. Capacity to Succeed by Will or Intestacy 1. or be incapacitated to receive it. 1015 1331 Art. it shall be necessary: (1) That two or more persons be called to the same inheritance. health officer or druggist who took care of the testator during his last illness. or who died before the testator. sister. parents. 1027 305 .1330 In order that the right of accretion may take place in a testamentary succession. associations and corporations not permitted by law to inherit. the part assigned to the one who renounces or cannot receive his share. descendant. Right of Accretion 1. is added or incorporated to that of his co- heirs. nevertheless. 1016 1332 Art. even if the testator should die after the approval thereof. or to the same portion thereof. the church. or spouse. co-devisees. or renounce the inheritance. pro indiviso.1331 B. or institution to which such priest or minister may belong. Persons Incapable of Succeeding (1) The priest who heard the confession of the testator during his last illness. (2) The relatives of such priest or minister of the gospel within the fourth degree. (5) Any physician. (6) Individuals. parents. (4) Any attesting witness to the execution of a will. chapter. organization. the spouse. and (2) That one of the persons thus called die before the testator. when two or more persons are called to the same inheritance. or the minister of the gospel who extended spiritual aid to him during the same period. or children. shall be valid. (3) A guardian with respect to testamentary dispositions given by a ward in his favor before the final accounts of the guardianship have been approved. spouse.1332 1330 Art. nurse. Definition and Requisites Accretion is a right by virtue of which. brother. order. or children.

(2) Those made between persons found guilty of the same criminal offense. The following donations shall be void: (1) Those made between persons who were guilty of adultery or concubinage at the time of the donation. (8) Any person who falsifies or forges a supposed will of the decedent. 1. (6) Any person who by fraud. or attempted against their virtue. violence. there is no obligation to make an accusation. (7) Any person who by the same means prevents another from making a will. 739 1334 Art. should fail to report it to an officer of the law within a month. in consideration thereof. or from revoking one already made. descendants. descendants and ascendants. 1032 306 . (5) Any person convicted of adultery or concubinage with the spouse of the testator. by reason of his office. if the accusation has been found groundless. or ascendants. or alters the latter's will. his or her spouse. (3) Any person who has accused the testator of a crime for which the law prescribes imprisonment for six years or more. (4) Any heir of full age who.1333 The following are incapable of succeeding by reason of unworthiness: (1) Parents who have abandoned their children or induced their daughters to lead a corrupt or immoral life. this prohibition shall not apply to cases wherein. or undue influence should cause the testator to make a will or to change one already made. conceals. having knowledge of the violent death of the testator. unless the authorities have already taken action. according to law. or who supplants. the action for declaration of nullity may be brought by the spouse of the donor or donee. (3) Those made to a public officer or his wife. and the guilt of the donor and donee may be proved by preponderance of evidence in the same action. In the case referred to in No. intimidation. (2) Any person who has been convicted of an attempt against the life of the testator.1334 1333 Art.

1335 person is deprived of. institutions and entities qualified to acquire property may accept any inheritance left to the latter.1336 The effects of the acceptance or repudiation shall always retroact to the moment of the death of the decedent.1340 Public official establishments can neither accept nor repudiate an inheritance without the approval of the government.1338 Any person having the free disposal of his property may accept or repudiate an inheritance. Parents or guardians may repudiate the inheritance left to their wards only by judicial authorization.1337 No person may accept or repudiate an inheritance unless he is certain of the death of the person from whom he is to inherit. 1043 1339 Art. 1044 1340 Art.1342 1335 supra 1336 Art. Disinheritance Unworthiness Disinheritance A person cannot succeed for reasons A testamentary disposition by which a provided for by law. and of his right to the inheritance.1341 A married woman of age may repudiate an inheritance without the consent of her husband.1339 The lawful representatives of corporations. 1046 307 . associations. to those mentioned in Article 1030. 1042 1338 Art. 1030 1337 Art. The right to accept an inheritance left to the poor shall belong to the persons designated by the testator to determine the beneficiaries and distribute the property. Acceptance and Repudiation of the Inheritance The acceptance or repudiation of the inheritance is an act which is purely voluntary and free. Unworthiness vs. 2. the inheritance to which he has a right. 1045 1341 Art. the approval of the court shall be necessary. C. see Reference for Art. 1041. or in their default. or excluded from. but in order to repudiate it. Any inheritance left to minors or incapacitated persons may be accepted by their parents or guardians.

donates. even though gratuitously. Should they not be able to read and write.1344 An inheritance is deemed accepted: (1) If the heirs sells. for the benefit of one or more of his co-heirs. or to any of them. 1050 1346 Art.1347 The acceptance shall benefit the creditors only to an extent sufficient to cover the amount of their credits. A tacit acceptance is one resulting from acts by which the intention to accept is necessarily implied. Deaf-mutes who can read and write may accept or repudiate the inheritance personally or through an agent. Acts of mere preservation or provisional administration do not imply an acceptance of the inheritance if. but if this renunciation should be gratuitous. but shall be adjudicated to the persons to whom it may belong. 1052 308 . or by petition presented to the court having jurisdiction over the testamentary or intestate proceedings. 1342 Art. or to his co-heirs.1345 The repudiation of an inheritance shall be made in a public or authentic instrument. The excess. through such acts. the inheritance shall be accepted by their guardians. and the co-heirs in whose favor it is made are those upon whom the portion renounced should devolve by virtue of accretion. the latter may petition the court to authorize them to accept it in the name of the heir. (3) If he renounces it for a price in favor of all his co-heirs indiscriminately. or which one would have no right to do except in the capacity of an heir.1343 Acceptance may be express or tacit. 1048 1344 Art. or assigns his right to a stranger. (2) If the heir renounces the same. should there be any. 1047 1343 Art. 1051 1347 Art. 1049 1345 Art. An express acceptance must be made in a public or private document. shall in no case pertain to the renouncer. These guardians may repudiate the same with judicial approval. the title or capacity of an heir has not been assumed.1346 If the heir repudiates the inheritance to the prejudice of his own creditors. the inheritance shall not be deemed as accepted.

who is called to the same inheritance as an heir by will and ab intestato. they shall be reduced according to the rules established by this Code. 1055 1351 Art. some of them may accept and the others may repudiate it. once made. Should he repudiate it as an intestate heir. at the time he made them. or when an unknown will appears.1348 Should there be several heirs called to the inheritance.1353 Donations given to children shall be charged to their legitime. the heirs.1351 Within thirty days after the court has issued an order for the distribution of the estate in accordance with the Rules of Court. he is understood to have repudiated it in both capacities.1352 D. and cannot be impugned. shall be added the value of all donations by the testator that are subject to collation. 908 1354 Art. which shall not include those imposed in the will. repudiates the inheritance in his capacity as a testamentary heir. is irrevocable. 1057 1353 Art. If they do not do so within that time. deducting all debts and charges. 1056 1352 Art.1354 1348 Art. 1054 1350 Art. he may still accept it in the latter capacity. devisees and legatees shall signify to the court having jurisdiction whether they accept or repudiate the inheritance. If the heir should die without having accepted or repudiated the inheritance his right shall be transmitted to his heirs. To the net value of the hereditary estate. without knowledge of his being a testamentary heir.1349 If a person. Donations made to strangers shall be charged to that part of the estate of which the testator could have disposed by his last will. 909 309 .1350 The acceptance or repudiation of an inheritance. Insofar as they may be inofficious or may exceed the disposable portion. 1053 1349 Art. the value of the property left at the death of the testator shall be considered. except when it was made through any of the causes that vitiate consent. Collation To determine the legitime. they are deemed to have accepted the inheritance.

1080 310 . industrial. and in the account of the partition. Should they exceed the portion that can be freely disposed of. 1355 Art.1356 Collation shall not take place among compulsory heirs if the donor should have so expressly provided. although it should purport to be a sale. who succeeds with other compulsory heirs. It is not subject to any form. 1359 Art. 1079 It includes every act which is intended to put an end to indivision among co-heirs. by way of donation. must bring into the mass of the estate any property or right which he may have received from the decedent. The thing itself may be divided. or its value. 1062 1358 Art. Partition and Distribution of Estate 1.1357 E. exchange. shall be charged to his legitime.1359 2.1358 Should a person make partition of his estate by an act inter vivos. or by will. in the interest of his or her family. unless the donation should be reduced as inofficious. Partition The separation. such partition shall be respected. desires to keep any agricultural. they shall be reduced. or if the donee should repudiate the inheritance. and legatees or devisees. compromise. 1061 1357 Art. may avail himself of the right granted him in this article. A parent who. or manufacturing enterprise intact.1355 Every compulsory heir. during the lifetime of the latter. Partition inter vivos It is one that merely allocates specific items or pieces of property on the basis of the pro-indiviso shares fixed by law or given under the will to heirs or successors. 910 1356 Art. or any other transaction. Donations which an illegitimate child may have received during the lifetime of his father or mother. be paid in cash. in order that it may be computed in the determination of the legitime of each heir. division and assignment of a thing held in common among those to whom it may belong. or any other gratuitous title. insofar as it does not prejudice the legitime of the compulsory heirs. by ordering that the legitime of the other children to whom the property is not assigned.

1362 A partition made with preterition of any of the compulsory heirs shall not be rescinded. 1097 1362 Art. 1100 1363 Art. shall be void only with respect to such person.1364 1360 Art.1360 A partition may be rescinded or annulled for the same causes as contracts. but the latter shall be proportionately obliged to pay to the person omitted the share which belongs to him. but who is not. 1105 311 . 1091 1361 Art.1361 The action for rescission on account of lesion shall prescribe after four years from the time the partition was made. 1104 1364 Art. Effects of Partition A partition legally made confers upon each heir the exclusive ownership of the property adjudicated to him.1363 A partition which includes a person believed to be an heir. unless it be proved that there was bad faith or fraud on the part of the other persons interested. 3.

1769 312 . PARTNERSHIP I. Exception: Partnership by estoppel 2. property or industry to a common fund. even though the co-owners share in the profits derived from the incident of joint ownership. C. A partnership may sue and be sued in its name or by its duly authorized representatives. property or industry to a common fund. Two or more persons may also form a partnership for the exercise of a profession. Co-ownership of a property does not itself establish a partnership. Contract of partnership1365 A. B. that of the firm – must arise. A new personality. General rule: Persons who are not partners as to each other are not partners as to third persons. 3. Subject must be a lawful one. (Tai Tong Chuache & Co. 2. vs. Contribution of money. Insurance Commission 158 SCRA 336 [1988]) 1366 affectio societatis 1367 Art. A managing partner of the partnership may execute all acts of administration including the right to sue debtors of the partnership in the case of their failure to pay their obligation when it becomes demandable. 5. Rules to determine existence1367 1. Elements 1. 1366 6. with the intention of dividing the profits among themselves. A desire to formulate an active union. 4. distinct from the separate personality of each of the members. 1365 A partnership has a juridical personality which is separate and distinct from that of the partners. Definition By the contract of partnership two or more persons bind themselves to contribute money. Consensual. An intention of dividing the profit among the partners.

. (d) as interest on a loan.1773 A partnership contract which states that the partnership is established to operate a fishpond is not rendered void because no inventory of the fishpond was made (where it did not clearly appear in the articles of partnership that the real property had been contributed by anyone of the partners). D. Where the contract of partnership has a capital of 3. Where immovable property or real rights are contributed. However.000 pesos or more.1369 2. Receipt of share in the profits is a strong presumptive evidence of partnership. b. it shall appear in a public instrument and must be recorded in the Office of the 1368 Art. no such inference will be drawn if such profits were received in payment: (a) as a debt by installments or otherwise. 4. signed by the parties and attached to the public instrument. though the amount of payment vary with the profits of the business. How partnership is formed General rule: No special form is required for the validity or existence of the contract of partnership. the partnership contract shall be void unless: a. (b) as wages of an employee or rent to a landlord. Exceptions: 1. (Agad vs. Mabolo and Mabolo Agad and Co. (c) as an annuity to a widow or representative of a deceased partner. in money or property. Sharing of gross returns alone does not indicate a partnership. An inventory of the property contributed is made. whether or not the persons sharing them have a joint or common right or interest in any property from which the returns are derived. 1771 1369 Art. It is reduced to writing in a public instrument1368 . 23 SCRA 1223[1968]) 313 . such partnership contract is covered by the statute of frauds and thus requires a written agreement to be enforceable. 3. 3. and (e) as the consideration for the sale of a goodwill of a business or other property by installments or otherwise. Where the contract is by its terms not to be performed within a year from the making thereof.

314 . or a specific fund. 1370 expressly or impliedly 1371 In a universal partnership of all present property. with the intention of dividing the same undertaking. it will be presumed that the parties intended merely a partnership of profits. E. the property which belongs to each of the partners at the time of the constitution of the partnership. (Art. Future properties cannot be contributed. A stipulation for the common enjoyment of any other profits may also be made. Thus. General vs. becomes the common property of all the partners. but the properties which the partners may acquire subsequently by inheritance. Partnership term Unlimited in the sense that no time limit is fixed by law. only the usufruct passing to the partnership. which they may acquire therewith. except the fruits thereof. a partnership has a juridical personality even in case of failure to comply with this requirement.1370 F. 739. Persons who are prohibited from giving each other any donation or advantage cannot enter into a universal partnership. (2) legacy or (3) donation cannot be included by stipulation except the fruits thereof 1372 Movable or immovable property which each of the partners may posses at the time of the celebration of the contract shall continue to pertain exclusively to each. property subsequently acquired by (1) inheritance. may be agreed upon. as well as the profits which they may acquire therewith.Securities and Exchange Commission. Limited Universal partnership of all present Particular partnership property1371 The partners contribute all the property One which has for its object determinate which actually belong to them to a common things. However. Universal vs. Where the articles of partnership do not specify the nature of the universal partnership. Art. or the exercise of a profession among themselves. their use and fruits. Particular. 87. lottery) without employment of any physical or intellectual efforts are not included. legacy or donation cannot be included in such stipulation. whether it is one of “present property” or of “profits” only.e. as well as all the profits or vocation. Universal partnership of profits1372 Comprises all that the partners may acquire by their industry or work during the existence of the partnership and the usufruct of movable or immovable property which each of the partners may possess at the time of the celebration of the contract. Family Code) Profits acquired by their partners through chance (i.

Its requisites are: a.e. Joint Venture Partnership Joint Venture1375 Contemplates a general business with some Formed for the execution of a single degree of continuity transaction and is thus of temporary nature It is hardly distinguishable from partnership. the court defined a joint venture as an association of persons or companies jointly undertaking some commercial enterprise. b. A contract. and a mutual right of control. 232 SCRA 110 [1994]. Jr. the latter partnership debts. 1373 Elements to establish liability as a partner on ground of estoppel: 1. partnership liability is created only in favor of persons who on the faith of such representation given credit to the actual or apparent partnership 1375 In Kilosbayan. since their elements are similar.1374 H. who has. sharing of profits and losses. not being personally liable for the obligations of the partnership. A right to direct and govern the policy in connection therewith. Incorporated vs. Partnership by estoppel1373 Arises when a person. A community of interest in the performance of the subject matter. on the faith of such representation given credit to the actual or apparent partnership. by words spoken or written or by conduct. General partnership Limited partnership Consist of general partners who are liable One formed by two or more persons having pro rata and subsidiarily and sometimes as members one or more general partners solidarily with their separate property for and one or more limited partners. Statement of defendant not refuted 1374 Art 1825 It does not create a partnership as between the alleged partners. express or implied is essential to the creation of partnership. Guingona. Partnership v.Defendant represented himself as partner/represented by others as such and not denied/refuted by defendant 2. he is liable to any such person to whom such representation has been made. Duty to share profits and losses. as partner in an existing partnership. 315 . The law considers them partners and the association as a partnership insofar as it is favorable to third persons. c. represents himself or consents to another representing him to anyone. or with one or more persons not actual partners. generally all contribute assets and share risks. However. G. community of interest in the business. i. Plaintiff relied on such representation 3.

2. Extent of power: as long as he remains manager. to remove him for just cause. despite opposition of his partners ii. J. Appointment in the articles of partnership a. When the manner of management has been provided for in the partnership agreement When a managing partner has been appointed: 1. if he acts in good faith. he can perform all acts of administration. Power is irrevocable without just or lawful cause i. vote of partners representing controlling interest is necessary ii. Professional partnership Partnerships formed by persons for the sole purpose of exercising their common profession. I. if in bad faith. with or without just cause b. he can be removed 1376 Arts. 1800-1803 316 . Extent of power i. Power to act may be revoked at any time. Appointment other than in the articles of partnership a. to remove him without just cause or for an unjust cause. he may do all acts of administration. no part of the income of which is derived from engaging in any trade or business. there must be unanimity including his own vote b. but if others oppose and he persists. he cannot. Management1376 A.

Decision of the majority of the managing partners shall prevail b. decision of the partners representing the controlling interest shall prevail 2. Unanimous consent required for alteration of immovable property 317 . When two or more managing partners have been entrusted with the management of partnership: 1. When manner of management has not been agreed upon a. a. partner may act alone without the consent of the partner who is absent or under disability B. Without specification of their respective duties and without stipulation requiring unanimity of action General rule: Each managing partner may execute all acts of administration Exception: If any of the managing partners should oppose. In case of a tie. All partners shall be considered managers and agents b. With stipulation requiring unanimity of action General rule: Unanimous consent of all the managing partners shall be necessary for the validity of the acts and absence or inability of any managing partner cannot be alleged Exception: When there is an imminent danger of grave or irreparable injury to the partnership.

it must be connected with partnership affairs 2. Use of deceased partner’s name in law firm: permissible as long as it’s indicated in the firm’s communications that the partner is deceased (Rule 3. CC). 1840. 1379 Every partnership shall operate under a firm name (Art. 3. answer for risks (Art. 1795. Non-members whose names were used: don’t have the rights of a partner but are liable to 3rd persons without notice as partners (Art. CC) 2. 1820. They become partners by estoppel (PNB v. CC) to distinguish the partnership from other entities & from the individual partners. it’s within the scope of the partner’s authority (Art. in general: a) enter into contracts b) acquire and possess property of all kinds c) incur obligations d) bring civil and criminal actions e) be adjudged insolvent even if the individual members be each financially solvent f) bear risk of loss1377 g) reimburse1378 h) operate under firm name1379 i) bound by partner’s admission1380 1377 Partnership bears the risk: when what is contributed is a fungible thing. CC) 1380 Requisites to be admissible against the partnership: 1. the paying partner doesn’t have the right of retention if he isn’t paid. before the limited partner became such. Rights and obligations of partnership The partnership can. answer for obligations contracted in good faith in the partnership’s interest 3. But unlike an ordinary agent. CC) and acted within the scope of his authority. Purely industrial partner not liable for losses Exception: when a partner makes admissions for himself only without purporting to act for the partnership 318 . CPR) Other rules: 1. if the thing was contributed to be sold. the limited partner’s surname shall not appear in the firm name unless a. CC) as may be just and equitable under the circumstances according to capital contribution. Being a mere agent. 1815. thing which can’t be kept without deteriorating. 1846.II. refund disbursements with legal interest 2. CC) Partner = agent. the business had been carried on under a name in which his surname appeared (Art. Lo). 1815.02. 1796. it’s also the surname of a general partner b. 1912. CC) 1378 3 obligations of the partnership: 1. a person continuing the partnership after a dissolution uses the firm name/name of deceased partner as part of the name: deceased partner’s individual property isn’t liable for debts contracted (Art. he isn’t personally liable as long as he’s not at fault (Art. and contributions are appraised in the inventory (Art.

Obligation with respect to contribution of property a) To contribute what had been promised Admission by a former partner not admissible in evidence against the partnership. j) bound by notice to partner1381 k) liable for wrongful act of partner1382 III. (Congco vs. omissions of a partner: firm is liable to the same extent as the partner (Art. Property rights a) His rights in the specific partnership property b) His interest in the partnership c) His right to participate in the management 2. WON a partner at the time as long as he still remembers the partnership matter 3. Right to have partnership dissolved under certain conditions. CC) 1382 Extent of liability for wrongful acts. Obligations: 1. Right to reimbursement for amounts advanced to the partnership and to indemnification for risks in consequence of management 3. 319 . CC). Trillana) 1381 Notice to the firm: 1. Right to true and full information of all things affecting the partnership 6. CC). Knowledge is acquired by a partner who’s acting in a particular matter. Right to associate with another person in his share 4. 1823. 1383 The ten (10) year period to demand an accounting by a partner begins at the dissolution of the partnership. Notice to a partner while already a partner 2. Rights and obligations of partners among themselves Rights: 1. Right of access and inspection of partnership books 5. and could’ve communicated it to the acting partner (Art. The partner who acquired it has reason to believe that it be the subject of the business. 1821. the partnership is solidarily liable with the misappropriating partner (Art. Right to a formal account of partnership affairs under certain circumstances1383 7. Misapplication of money/property resulting in losses: if loss is suffered by the 3rd person who delivered the money/property. 1822.

cannot engage in any business for himself unless the partnership expressly permits him to do so. b) To answer for eviction in case the partnership is deprived of determinate property contributed c) To answer to the partnership for the fruits of the property the contribution of which is delayed. The other partners have the remedy of either excluding the erring partner from the firm or of availing themselves of the benefits which he may have obtained. 1384 The prohibition is absolute and applies whether the industrial partner is to engage in the same business in which the partnership is engaged or in any kind of business. It is clear that the reason for the prohibition exists in both cases. 51 SCRA 416.1384 Capitalist partner. 2. Obligations with respect to contribution of money and money converted to personal use a) To contribute on the date due the amount he has undertaken to contribute to the partnership b) To reimburse any amount he may have taken from the partnership coffers and converted to his own personal use c) To pay the agreed or legal interest. which is to prevent any conflict of interest between the industrial partner and the partnership and to insure faithful compliance by said partner with his prestation (Evangelista & Co. Obligation Not to Engage in Other Business for Himself Industrial partner. Abad Santos.The prohibition extends only to any operation which is of the same kind of business in which the partnership is engaged unless there is a stipulation to the contrary. 3. if he fails to pay his contribution on time or in case he takes any amount from the common fund and converted to his own personal use d) To indemnify the partnership for the damages caused to it by the delay in the contribution or the conversion of any sum for his personal benefit. 1973) 320 . from the date they should have been contributed to the time of actual delivery d) To preserve the property with the diligence of a good father of a family pending delivery to the partnership e) To indemnify the partners for any damages caused to it by the retention of the same or by delay in its contribution. vs.

shall be obliged. in which case the whole sum shall be applied to the partnership credit only. he shall be obliged to sell his interest in the partnership to other partners. 8. his share in the partnership credit 2) The other partners have not collected their shares. and there is no agreement to the contrary. liquidation of the partnership or form any use by him of its property. Duty to Render Information Partners shall render on demand true and full information of all things affecting the partnership to any partner or the legal representative of any deceased partner of any partner under legal disability. 6. he is under obligation to contribute an additional share to save the venture. and hold as trustee for it any profits derived by him without the consent of the other partners from any transaction connected with the formation. Obligation of Partner Who Receives Share in Partnership Credit A partner who receives. 1385 Requisites for application of rule: 1) A partner has received. Obligation to Contribute Additional Capital As a general rule. in whole or in part. He cannot compensate them with the profits and benefits which he may have earned for the partnership by his industry. when the others have not collected theirs. any sum received by the managing partner shall be applied to the two credits in proportion to their amounts. Obligation of Managing Partner who Collects Debt Where a person is separately indebted to the partnership and to the managing partner at the same time. to bring to the partnership capital what he received even though he may have given receipt for his share only. 4. If he refuses to contribute. a capitalist partner is not bound to contribute to the partnership more than what he agreed to contribute but in case of an imminent loss of the business. conduct. 9. Obligation of Partner for Damages to Partnership Every partner is responsible to the partnership for damages suffered by it through his fault. in whole or in part. 3) The partnership debtor has become insolvent. except where he received it entirely for the account of the partnership. if the debtor should thereafter become insolvent. 5. 321 . Obligation to account for any benefit and hold as trustee unauthorized personal profits Every partner must account to the partnership for any benefit. his share in the partnership.1385 7.

Acts of Strict Dominion or Ownership1387 General rule: Act does not bind the partnership. by any wrongful act or omission of any partner acting in the ordinary course of business of the partnership or with authority of his co-partners. Exception: Partnership is not bound if: i. are personally liable with all their property. 1816 1387 Acts which are not apparently for carrying on in the usual way the business of the partnership 1388 Art. or ii. including industrial partners. 1823 322 . Their individual liability is pro rata and subsidiary. Exception: Partnership is bound if: i. 1822 1389 Art. loss or injury is caused to any person. acting partner has in fact no authority and ii. they have abandoned the business c. Acts for apparently carrying on in the usual way the business of the partnership General rule: Act binds the partnership. Obligations of Partnership/Partners to Third Persons Liability for contractual obligations1386 All partners. the third person knows that the acting partner has no authority b.IV. Where one partner. receives money or property of a third person and misapplies it1389 1386 Art. Where. Acts in contravention of a restriction on authority Partnership is not liable to third persons having actual or presumptive knowledge of the restrictions Liability arising from partner’s tort or breach of trust a. acting within the scope of his apparent authority. the act is authorized by all the partners. not being a partner in the partnership1388 b. unless otherwise stipulated Liability of partnership for acts of partners a.

by the express will of any partner at any time. where the circumstances do not permit a dissolution under any other provision of this article. Dissolution is caused: (1) Without violation of the agreement between the partners: (a) By the termination of the definite term or particular undertaking specified in the agreement. in the course of its business. (3) By any event which makes it unlawful for the business of the partnership to be carried on or for the members to carry it on in partnership. when no definite term or particular is specified. in any case by the loss of the thing. It represents the demise of a partnership.1391 It is the point in time when the partners cease to carry on the business together. (d) By the expulsion of any partner from the business bona fide in accordance with such a power conferred by the agreement between the partners. 1828 323 . especially when it involves a fine rather than imprisonment. (c) By the express will of all the partners who have not assigned their interests or suffered them to be charged for their separate debts. perishes before the delivery. But where the crime is statutory. when the 1390 Ibid Criminal liability of partnership: Partnership liability does not extend to criminal liability where the wrongdoing is regarded as individual in character. c. receives money or property and it is misapplied by any partner while it is in the custody of the partnership1390 V. (4) When a specific thing which a partner had promised to contribute to the partnership. Where the partnership. who must act in good faith. criminal liability may be imposed All partners are solidarily liable with the partnership for any penalty or damage arising from a partnership tort or breach of trust 1391 Art. Dissolution Change in the relation of the partners caused by any partner ceasing to be associated in carrying on the business. either before or after the termination of any specified term or particular undertaking. (2) In contravention of the agreement between the partners. (b) By the express will of any partner.

B. As to third persons or creditors guilty of estoppel. If creditors deal with the firm as a limited partnership. (Jo Chung Cang vs. Name of partnership + word 2. Partner a. Limited partnership A. partnership must state the ff. in which all the members are liable as general partners. a firm which fails to substantially comply with the formal requirements of a limited partnership is a general partnership only as to its relations to third persons. How limited partnership is formed/amended1392 Formation Amendment 1. but the partnership shall not be dissolved by the loss of the thing when it occurs after the partnership has acquired the ownership thereof. (7) By the civil interdiction of any partner." b. or that the terms of the partnership were not sufficiently stated in the notice of its formation. (40 Am. Definition One formed by two or more persons having as members one or more general partners and one or more limited partners. Substitution of limited partner "ltd.partner who contributed it having reserved the ownership thereof. the firm shall not be treated as a general partnership despite lack of substantial compliance to the requirements of a limited partnership. (8) By decree of court under the following article. (5) By the death of any partner. they will be estopped from insisting that there is no such partnership. and that all the limited partner’s relations to his co-partners and their obligations to him growing out of the relation remain unimpaired. Character of business 3. Change in name of partnership. the latter not being personally liable for the obligations of the partnership.) 324 . 142 [1923]. Certificate of articles of the limited 1. 45 Phil. Pacific Commercial Co.. However. If there is no substantial compliance. (6) By the insolvency of any partner or of the partnership. 476. and as between the partners they are bound by their agreement. Admission of additional limited partner 1392 A strict compliance with the legal requirements is not necessary. the partnership becomes a general partnership as far as third persons are concerned. Jur. The firm is a limited partnership. matters: amount/character of contribution of ltd. VI. It is sufficient that there is substantial compliance in good faith. subject to all rules applicable to such partnership. has only transferred to the partnership the use or enjoyment of the same.

Change in character of business f. Right to admit additional partners 2. To ask for dissolution and winding up by decree of court 6. insolvency. Change in time as stated in the certificate g. at a reasonable hour. Sharing of profits/other partnership. Such certificate must be filed for record in the Office of the Securities and Exchange Commission. Rights and obligations of a limited partner Rights: 1. Name/place of residence of interdiction of general partner & members business is continued e. c. To receive the return of his contribution provided: a) All the liabilities of the partnership have been paid or the partnership assets are sufficient to pay partnership liabilities 325 . civil d. Admission of general partner business 5. Location of principal place of 4. Right of limited partner (if given) 10. Term for partnership is to exist 6. Time is fixed for dissolution of i. Time agreed upon to return contribution contribution of limited partner 9. insanity. Death. To demand true and full information of the things affecting the partnership 4. To have the partnership books kept at the principal place of business of the partnership 2. Additional contributions for dissolution of partnership/return of h. To inspect. To demand a formal account of the partnership affairs whenever circumstances render it just and reasonable 5. Amount of cash/value of 7. Change in other statement in certificate to substitute an assignee k. To receive a share in the profits or other compensation by way of income provided that the partnership assets are in excess of partnership liabilities after such payment 7. C. partnership books and copy any of them 3. False/erroneous statement in certificate property contributed 8. Return of contribution if no compensation orig. time specified j.

b) The consent of all the members has been obtained1393 c) The certificate is cancelled or so amended as to set forth the withdrawal or reduction Obligation: To contribute cash or property to the partnership but not services. 1393 Exception: When the return of the contribution may be rightfully demanded: 1) On the dissolution of the partnership 2) Upon the arrival of the date specified in the certificate for the return 3) After he has given 6 months’ notice in writing to all other partners. if no time is specified in the certificate there for the return of the contribution or for the dissolution of the partnership 326 .

1401 So far as third persons are concerned.1397 II. as written. AGENCY1394 I. Exceptions: 1. it shall be void if the party with whom the agent contracted is aware of the limits of the powers granted by the principal. 680 [1906]) 4. Where the principal has ratified the acts of the agent.1402 1394 General rule: There are no formal requirements governing the appointment of an agent. Powers A. Definition of agency A contract whereby a person1395 binds himself to render some service or to do something in representation or on behalf of another1396 with the consent or authority of the latter.1399 If the agent contracts in the name of the principal. an act is deemed to have been performed within the scope of the agent's authority. 6 Phil. The agent’s authority may be oral or written. the latter cannot set up the ignorance of the agent as to circumstances whereof he himself was. exceeding the scope of his authority. however. the agent is liable if he undertook to secure the principal's ratification. In this case. 3. 1900 327 . Where the principal’s acts have contributed to deceive the third person in good faith. 2. if such act is within the terms of the power of attorney. Where the principal has placed in the hands of the agent instruments signed by him in blank (Strong vs. 1897 1400 Art. aware. or ought to have been. It may be in a public or private writing. and the principal does not ratify the contract. 1868 1398 General Rule: The principal is not bound by the acts of the agent beyond his limited powers. To bind principal1398 The agent who acts as such is not personally liable to the party with whom he contracts. Where the limitations upon the power created by him could not have been known by the third person. 1399 Art. 1898 1401 Art. even if the agent has in fact exceeded the limits of his authority according to an understanding between the principal and the agent. 1899 1402 Art. unless he expressly binds himself or exceeds the limits of his authority without giving such party sufficient notice of his powers. Gutierrez Repide.1400 If a duly authorized agent acts in accordance with the orders of the principal. Exception: When the law requires a specific form 1395 agent 1396 principal 1397 Art.

Express vs. acts of the principal. In such case. or has signified his willingness to ratify the agent's acts. Implied Agency Express Implied1406 One where the agent has been actually One which is implied from the authorized by the principal. Private or secret orders and instructions of the principal do not prejudice third persons who have relied upon the power of attorney or instructions shown them. The provisions shall be understood to be without prejudice to the actions between the principal and agent. or the instructions as regards the agency. the agent is the one directly bound in favor of the person with whom he has contracted.1403 A third person with whom the agent wishes to contract on behalf of the principal may require the presentation of the power of attorney. 2. Exception If an agent acts in his own name. A third person cannot set up the fact that the agent has exceeded his powers. the principal has no right of action against the persons with whom the agent has contracted. 1901 1404 Art. or his failure to repudiate the agency knowing that another person is acting on his behalf without authority. as if the transaction were his own.1405 III. either orally or in writing. Acts of the agent. except when the contract involves things belonging to the principal.when he carries out the agency. if the principal has ratified. 1.from his silence or lack of action. 1902 1405 Art. 1883 1406 The principal is still bound by the acts of the agent just as in case of express agency 328 . neither have such persons against the principal. or from his silence or inaction according to the circumstances. 1403 Art.1404 B.

1409 1407 Cuison vs. 2d 443 (1979) 329 . 1993 1408 Siredy Enterprises. 575. Agency couched in general terms One which is created in general terms and is deemed to comprise only acts of administration. While third persons are bound to inquire into the extent or scope of the agent’s authority. 1409 Irving v. General vs. 2d 55 (1982). In the same way.1407 V.. The question in every case is whether the principal has by his voluntary act placed the agent in such a situation that a person of ordinary prudence. vs. and holds him out to the public as such. quoting Arthur v. Agency by operation of law The concept is essentially one of estoppel and has been explained in this manner: "The principal is bound by the acts of his agent with the apparent authority which he knowingly permits the agent to assume. et al. they are not required to go beyond the terms of the written power of attorney. 169 N. September 27. Inc. October 26.1408 VIII. third persons need not concern themselves with instructions given by the principal to his agent outside the written power of attorney. Agency by estoppel One who clothes another with apparent authority as his agent. or which he holds the agent out to the public as possessing. 2002 A third person with whom the agent wishes to contract on behalf of the principal may require the presentation of the power of attorney or the instructions as regards the agency. GR. conversant with business usages and the nature of the particular business. and in the honest belief that he is what he appears to be. Inc. except private or secret orders. Doctors Hospital of Lake Worth. cannot be permitted to deny the authority of such person in good faith. is justified in presuming that such agent has authority to perform the particular act in question. CA.88531. GR 129039. CA.IV. 415 So. Special Agency General Agency Special Agency One which comprises all the business of the One which comprises one or more specific principal transactions VI. Peters Hospital. St. VII. Agency requiring special power of attorney The scope of the agent’s authority is what appears in the written terms of the power of attorney. 405 A. Third persons cannot be adversely affected by an understanding between the principal and his agent as to the limits of the latter’s authority.J.

The reimbursement shall include interest on the sums advanced.1414 If two or more persons have appointed an agent for a common transaction or undertaking. Rights and Obligations of Principal The principal must comply with all the obligations which the agent may have contracted within the scope of his authority. they shall be solidarily liable to the agent for all the consequences of the agency. without prejudice to the provisions of Article 1544. 1911 1412 Art. the sums necessary for the execution of the agency. As for any obligation wherein the agent has exceeded his power. allows agent to exercise powers not granted to him.1415 When two persons contract with regard to the same thing. 1914 1415 Art. without fault or negligence on his part. the principal must reimburse him therefor. Should the agent have advanced them.1411 The principal must advance to the agent. 1910 1411 Art. the principal is solidarily liable with the agent if the former allowed the latter to act as though he had full powers. 1912 1413 Art.1416 Agency by estoppel is defined as "one created by operation of law and established by proof of such acts of the principal as reasonably lead third persons to the conclusion of its existence.1410 When the agent has exceeded his authority. provided the agent is free from all fault. should the latter so request.1412 The principal must also indemnify the agent for all the damages which the execution of the agency may have caused the latter. Arises where principal by negligence in failing to supervise agent’s affairs. one of them with the agent and the other with the principal. 1915 1416 Art. and the two contracts are incompatible with each other. thus justifying others in believing the agent possesses requisite authority 1410 Art. from the day on which the advance was made.IX. 1916 330 .1413 The agent may retain in pledge the things which are the object of the agency until the principal effects the reimbursement and pays the indemnity set forth in the two preceding articles. 1913 1414 Art. the principal is not bound except when he ratifies it expressly or tacitly. that of prior date shall be preferred. even if the business or undertaking was not successful.

1928 1421 Art. or if a partner is appointed manager of a partnership in the contract of partnership and his removal from the management is unjustifiable.1419 The agent may withdraw from the agency by giving due notice to the principal. unless the agent should base his withdrawal upon the impossibility of continuing the performance of the agency without grave detriment to himself. the principal shall be liable in damages to the third person whose contract must be rejected. even if he should withdraw from the agency for a valid reason.1422 1417 Art. he alone shall be responsible. (4) When it was stipulated that the expenses would be borne by the agent. unless the latter should wish to avail himself of the benefits derived from the contract. 1927 1420 Art. (2) When the expenses were due to the fault of the agent. If the agent acted in bad faith.1421 The agency shall remain in full force and effect even after the death of the principal. 1930 331 . the agent must indemnify him therefor. (3) When the agent incurred them with knowledge that an unfavorable result would ensue. 1918 1419 Art. Irrevocable agency An agency cannot be revoked if a bilateral contract depends upon it.1418 X. In the case referred to in the preceding article. 1420 The agent. or if it is the means of fulfilling an obligation already contracted.1417 The principal is not liable for the expenses incurred by the agent in the following cases: (1) If the agent acted in contravention of the principal's instructions. must continue to act until the principal has had reasonable opportunity to take the necessary steps to meet the situation. or in the interest of a third person who has accepted the stipulation in his favor. if the agent has acted in good faith. 1917 1418 Art. if it has been constituted in the common interest of the latter and of the agent. if the principal was not aware thereof. 1929 1422 Art. or that the latter would be allowed only a certain sum. If the latter should suffer any damage by reason of the withdrawal.

XI. Accomplishment of the object or the purpose of the agency 5. (3) Any ground for legal separation. Death. 2041 332 . (4) Future support. which entrusted or accepted the agency COMPROMISE I. 2037 1427 Art. Modes of extinguishment 1. insanity or insolvency of the principal or of the agent 3. Withdrawal of the agent1423 4. but there shall be no execution except in compliance with a judicial compromise. but must indemnify the principal for damages that he may suffer by reason of such withdrawal. the other party may either enforce the compromise or regard it as rescinded and insist upon his original demand. (2) The validity of a marriage or a legal separation.1427 1423 Agent may withdraw by giving notice to the principal. avoid a litigation or put an end to one already commenced. 2028 1425 Art. Dissolution of the firm or corporation. Void Compromise No compromise upon the following questions shall be valid: (1) The civil status of persons. 1424 Art. Definition A contract whereby the parties. civil interdiction. Expiration of the period 2. (6) Future legitime 1425 III. by making reciprocal concessions.1426 If one of the parties fails or refuses to abide by the compromise. 2035 1426 Art.1424 II. (5) The jurisdiction of courts. Effect The effect and authority of res judicata. Revocation 6.

Ordinary Commodatum – use by the borrower of the thing is for a certain period of time b. Loan A.one whereby the bailor may demand the thing loaned at will and it exists in the following cases: i. Commodatum1428 vs. shall produce the effect of payment only when they have been encashed (Gerales vs. such as checks. the use of the thing is merely tolerated by the owner 1429 A contract whereby one party delivers to another. (Art. The Civil Code provides that the delivery of bills of exchange and mercantile documents. money or other consumable thing with the understanding that the same amount of the same kind and quality shall be paid. It is only after the checks have produced the effect of payment that the contract of loan may be deemed perfected. Precarium . CA 218 SCRA 638). No estafa is committed by a person who refuses to pay his debt or denies its existence. Object Non-consumable Consumable Cause Gratuitous May or may not be gratuitous Purpose Use or temporary possession Consumption Subject Matter Real or personal property Only personal property 1428 Kinds: a. CREDIT TRANSACTIONS I. condition that the latter shall pay the same amount of the same kind and quality. neither the duration nor purpose of the contract is stipulated ii. The obligation is “to pay” and not to return because the consumption of the thing loaned is the distinguishing character of the contract of mutuum from that of commodatum. Mutuum1429 Commodatum Mutuum When the bailor1430 delivers to the Where the lender delivers to the bailee1431 a non-consumable thing so borrower money or other that the latter may use it for a certain consumable thing upon the time and return the identical thing. 1953) The mere issuance of the checks does not result in the perfection of the contract of loan. 1430 lender 1431 borrower 333 .

1941 334 . To pay for the ordinary expenses for the 1. To be liable for the loss of the thing even if it should be through a fortuitous event in Allow the bailee the use of the thing the following cases: loaned for the duration of the period stipulated or until the accomplishment of the a.1437 thing borrowed or his own things. accomplishment of its use Exceptions: b. when. c. Obligations of Bailor and Bailee Obligations of the Bailee Obligations of the bailor:1432 1. Ownership of the thing Retained by the bailor Passes to the debtor Thing to be returned Exact thing loaned Equal amount of the same kind and quality Who bears risk of loss Bailor Debtor When to return In case of urgent need. or 2. In case of urgent need in which case household bailee may demand its return or temporary use. when the thing loaned has been delivered with appraisal of its value b. 765. he chose to save the latter. when he keeps it longer than the purpose for which the commodatum was period stipulated. even before Only after the expiration of the the expiration of the term term B.1433 General rule: 2. To respect the duration of the loan use and preservation of the thing loaned. or after the instituted. when he lends or leases it to third persons who are not members of his a. 1946 – 1952 1433 Art. The bailor may demand immediate return of the thing if the bailee commits any d. being able to save either of the act of ingratitude specified in Art. To refund to the bailee extraordinary expenses for the preservation of the thing 1432 Arts.

their obligation shall be solidary. 3. 1438 Requisites: a. The bailee suffers damages by reason of said flaw or defect If the above requisites concur.1438 (a) if expressly stipulated. The flaw or defect is hidden. He cannot lawfully sell the thing to satisfy such damages without court’s approval. even though the bailee acted without fault. In case there are two or more bailees. the bailee has the right of retention for damages. There is flaw or defect in the thing loaned. To pay for extraordinary expenses arising from the actual use of the thing by the bailee. c. (b) if guilty of fault or negligence. b. To be liable for the deterioration of thing loaned 3. d. 2 1436 The bailee has no right to retain the thing loaned as security for claims he has against the bailor even for extraordinary expenses except for a claim for damages suffered because of the flaws of the thing loaned. To be liable to the bailee for damages for known hidden flaws. However. The bailor cannot exempt himself from the payment of expenses or damages by abandoning the thing to the 335 . loaned. To return the thing loaned1436 1437 supra 1434 Art. when the bailee devoted the thing for to the knowledge of the bailor before any purpose different from that for incurring them. which shall be borne equally by both the bailor and the bailee. and e. or (c) if he devotes the thing to any purpose different from that for which it has been loaned 4. unless there is a stipulation to the contrary1435 5. provided the bailee brings the same e. The bailor is aware thereof. except when they are so which it has been loaned1434 urgent that the reply to the notification cannot be awaited without danger. 1942 1435 Art. the bailee’s right extends no further than retention of the thing loaned until he is reimbursed for the damages suffered by him. He does not advise the bailee of the same. 1949. par.

When the obligation breached consists of payment of a sum of money. When the demand cannot be established. is imposed. as well as the accrual thereof. the rate shall be the legal rate 1441 computed from default. The following are the rules of thumb for the application/imposition of interest rates: a.1444 1439 Must be in writing in view of Art. the interest shall begin to run only from the date of the judgment of the court is made. i. 1956 1440 loan or forbearance of money 1441 i. When an obligation. CA. the rate of interest shall be six percent (6%) per annum. however.e.1443 iii. shall be 12% per annum from such finality until its satisfaction. when judicially demanded 2. Exceptions: 1. law. the rate of interest. 1994 336 . whether the case falls under paragraph i or ii above. 12% per annum 1442 The interest due shall itself earn legal interest from the time it is judicially demanded 1443 No interest.e. as follows: i. the rate of legal interest. regardless of its source. quasi- contracts. In absence of an agreement.1442 ii. In other cases. July 12. With regard particularly to an award of interest in the concept of actual and compensatory damages. 1444 Eastern Shipping Lines vs.. If there is stipulation: that rate shall be applied 2. the contravenor can be held liable for damages.1440 the interest shall be that which is stipulated or agreed upon by the parties. this interim period being deemed to be by then an equivalent to a forbearance of credit. When the judgment of the court awarding a sum of money becomes final and executory. C. delicts or quasi-delicts is breached. b. shall be adjudged on unliquidated claims or damages except when or until the demand can be established with reasonable certainty. Interest and the suspension of usury law General rule: Unpaid interest shall not earn interest. when there is an express stipulation1439 Guidelines for the application of proper interest rates: 1. contracts.

1452 Arts. A. CA. June 29. vs. 2001 1447 citing Lim Law vs. the same must be equitably reduced for being iniquitous. Necessary deposit One made in compliance with a legal obligation. 125944. or forbearance in the absence of express agreement to such rate Interest as indemnity for damages is payable only in case of default or non- performance of the contract.. No. or by travellers in hotels and inns. CA.1446 said that since the usury law had been repealed by CB Cir.1449. Solangon vs. goods or credits and judgments involving such loans. CA. 905. Central Bank Circular No. 1734 – 1735 337 .1452 B. 182 SCRA 517 1446 G. 416 fixing the rate of interest at 12% per annum deals with loans. 905 there is no more maximum rate of interest and the rate will just depend on the mutual agreement of the parties1447. they may be demanded separately. But the Supreme Court said that nothing in said circular grants lenders carta blanche authority to raise interest rates to level which will either enslave their borrowers or lead to a hemorrhaging of their assets 1448. there is lack of free choice in the depositor. it was ruled that while stipulated interest of 5. with the obligation of safely keeping it and of returning the same. whereas in the latter.1445 Validity of unconscionable interest rate in a loan: The Supreme Court in Sps. II. 1968 – 1995 1453 Arts.R. forbearance of any money. In Medel vs. Inc. unconscionable and exorbitant. 1996 . the depositor has a complete freedom in choosing the depositary.1454 1445 Sentinel Insurance Co..2004 1454 Arts. 129 SCRA 439 1448 citing Almeda vs. Deposit1451 A contract constituted from the moment a person receives a thing belonging to another. Olympic Sawmill Co. 256 SCRA 292) 1449 299 SCRA 481 1450 contra bonos mores 1451 The chief difference between a voluntary deposit and a necessary deposit is that in the former. As they are distinct claims.5% per month on a loan is usurious pursuant to CB Circular No. or on the occasion of any calamity. No. It was reduced to 12% per annum in consonant with justice and fair play. Voluntary deposit One wherein the delivery is made by the will of the depositor or by two or more persons each of whom believes himself entitled to the thing deposited.1453 or by travellers with common carriers. Jose Salazar. It is contrary to morals1450.

is responsible to the co-guarantors in the same terms as the guarantor. B. and which are not purely personal to the debtor. but also all its accessories. in case of the insolvency of the guarantor for whom he bound himself. the one among them who has paid may demand of each of the others the share which is proportionally owing from him. Where the guaranty definite: himself to the creditor to fulfill the It is limited to the principal debt. including the judicial costs. his share shall be borne by the others. III.1460 1455 Sequestration 1456 Art. 2055 1457 guarantor 1458 Art. C. to the obligation of the principal debtor in case the exclusion of accessories. Judicial deposit1455 When an attachment or seizure of property in litigation is ordered. If any of the guarantors should be insolvent. 2073 1459 Art. latter fail to do so. Guaranty and Suretyship A. in the same proportion. Nature and extent of guaranty Nature Extent of Guarantor’s liability1456 A contract whereby a person1457 binds 1. unless the payment has been made by virtue of a judicial demand or unless the principal debtor is insolvent. Where guaranty indefinite or simple: It shall comprise not only the principal obligation. provided with respect to the latter. including the payer. that the guarantor shall only be liable for those costs incurred after he has been judicially required to pay. 2.1459 A sub-guarantor. The provisions shall not be applicable. 2074 1460 Art. 2075 338 . the same defenses which would have pertained to the principal debtor against the creditor.1458 The co-guarantors may set up against the one who paid. Effects of guaranty When there are two or more guarantors of the same debtor and for the same debt.

2079 1466 Bond .1467 IV.an undertaking that is sufficiently secured. 2080 1464 Art.” If the person required to give a legal or judicial bond should not be able to do so. If the creditor voluntarily accepts immovable or other properties in payment of the debt. 2078 1462 Art. He must have the qualifications required of a guarantor and in special laws like the Rules of Court. Release in favor of one of the guarantors.a surety offered in virtue of a provision of law or a judicial order. 2082) 1467 Art 2083 339 . a pledge or mortgage sufficient to cover the obligation shall admitted in lieu thereof. 1461 Art.1465 D. (Art. mortgages and preferences of the former. Definition A contract wherein the debtor delivers to the creditor or to a third person a movable or document evidencing incorporeal rights for the purpose of securing fulfillment of a principal obligation with the understanding that when the obligation is fulfilled. even if he should afterwards lose the same through eviction or conveyance of property. the guarantors even though they are solidarily liable cannot be subrogated to the rights. benefits all to the extent of the share of the guarantor to whom it has been granted. Legal and judicial bonds1466 Judicial bonds constitute merely a special class of contracts of guaranty by the fact that they are given “in virtue… of a judicial order.1463 4. Pledge A. Whenever by some act of the creditor. the thing delivered shall be returned with all its fruits and accessions. C.1464 2. without the consent of the others. 1231 1465 Art.1462 3. When the principal obligation is extinguished. 2077 1463 Art.1461 2. and not cash or currency Bondsman . Extension granted to the debtor by the creditor without the consent of the guarantor. Extinguishment of guaranty 1. 6. For the same causes as all other obligations.

mortgagor. antichretic debtor must have free disposal of their property. Not to use thing unless authorized or by until after full payment of the debt. 4.1472 3. 2. 2105 1473 Art. but not for the validity of the contract. Pledgor.1471 of a good father of a family. It can only cover movable property and incorporeal rights evidenced by documents of title and the instruments proving the right pledged shall be delivered to the creditor.1468 5. 2104 1475 Art. Not to demand the return of the thing 2. or be legally authorized for such purpose. 2100 340 .1470 D. Secures the fulfillment of a principal obligation.1469 and 6. 2099 1474 Art. The description of the thing pledged and the date must appear in a public instrument to bind third persons. To advise the pledgee of the flaws of the 1. 2093 1469 Art. Not to deposit the thing with a 3rd person unless so stipulated. and if negotiable must be endorsed. Obligations of pledge Obligations of pledgor Obligations of pledgee 1. Pledgor. including the owner or its preservation requires its interest due thereon and expenses incurred use. B. 2101 1472 Art. 2094 1470 Art. Possession of the thing pledged must be transferred to the creditor or a third person by agreement. Essential requirements 1. Kinds 1. Take care of the thing with the diligence thing. antichretic debtor must be the absolute owner of the thing pledged or mortgaged.1475 1468 Art. Conventional /Voluntary – created by contract 2. mortgagor.1474 for its preservation. Legal – created by operation of law C.1473 2. and 3. 2096 1471 Art.

a second one with the same formalities shall be held. 1477 Art.1476 5. that the thing pledged be placed in the possession of the creditor. If at the first auction the thing is not sold. 2113 1481 Art.1483 A pledge shall not take effect against third persons if a description of the thing pledged and the date of the pledge do not appear in a public instrument. Rights of pledgor 1. To bid and be preferred at the public auction1480 3. This sale shall be made at a public auction. in order to constitute the contract of pledge. To ask that the thing pledged be deposited1482 F. To advise pledgor of the result of the public auction1478 E. Responsibility for acts of agents and employees as regards the thing. Foreclosure The creditor to whom the credit has not been satisfied in due time. 2107 1478 Art. 2093 1484 Art. 2104 & 2106 1483 Art.1484 G.1477 6. 2096 341 . may proceed before a Notary Public to the sale of the thing pledged. To alienate the thing pledged provided the pledgee consents to the sale1481 4. 2097 1482 Arts. subject to the duty of replacement1479 2. 4. or of a third person by common agreement. Perfection In addition to the requisites prescribed in article 2085. and with notification to the debtor and the owner of the thing pledged in a proper case. 2116 1479 ibid 1480 Art. and if at the second 1476 Ibid. stating the amount for which the public sale is to be held. To demand return in case of reasonable grounds to fear destruction or impairment of the thing without the pledgee’s fault. it is necessary. To advise pledgor of danger to the thing.

should the vendee fail to pay. notwithstanding any stipulation to the contrary. 1484 1491 Art. (2) Cancel the sale. such as those referred to in Articles 546. should the vendee's failure to pay cover two or more installments. 1731. the vendor may exercise any of the following remedies: (1) Exact fulfillment of the obligation. interest and expenses in a proper case. (3) Foreclose the chattel mortgage on the thing sold. he shall have no further action against the purchaser to recover any unpaid balance of the price. In this case he shall be obliged to give an acquittance for his entire claim.auction there is no sale either. If.1486 H. the contract is a pledge and not a chattel mortgage. The public auction shall take place within one month after such demand. 2112 1486 Art. Pledge by Operation of Law Pledges created by operation of law. 2122 1490 Art. If the price of the sale is more than said amount. However. neither shall the creditor be entitled to recover the deficiency. should the vendee's failure to pay cover two or more installments. If the movable. Distinguished from Chattel Mortgage In a contract of sale of personal property the price of which is payable in installments. 2121 1489 Art. Any agreement to the contrary shall be void. the remainder of the price of the sale shall be delivered to the obligor. personal property is recorded in the Chattel Mortgage Register as a security for the performance of an obligation. and 19941487. 2115 1487 See Reference 1488 Art.1491 1485 Art. the debtor may require the return of the thing. the debtor shall not be entitled to the excess. instead of being recorded.1485 The sale of the thing pledged shall extinguish the principal obligation. if one has been constituted. If the price of the sale is less. care and sale of the thing as well as on the termination of the pledge. whether or not the proceeds of the sale are equal to the amount of the principal obligation. after payment of the debt and expenses. without just grounds. the creditor may appropriate the thing pledged. unless it is otherwise agreed. 2140 342 .1488 A thing under a pledge by operation of law may be sold only after demand of the amount for which the thing is retained.1490 By a chattel mortgage. is delivered to the creditor or a third person.1489 I. are governed by the foregoing articles on the possession. the creditor does not cause the public sale to be held within such period. In this case.

3. Definition and characteristics A contract whereby the debtor secures to the creditor the fulfilment of a principal obligation. Foreclosure The remedy available to the mortgagee by which he subjects the mortgaged property to the satisfaction of the obligation to secure that for which the mortgage was given. Registration in the registry of property is necessary to bind third persons. 2125 1494 Art. Unilateral – it creates only an obligation on the part of the creditor who must free the property from the encumbrance once the obligation is fulfilled. 2124 1493 Art. B. Subsidiary 4. 2125 343 .1492 2. Accessory . It can cover only immovable property and alienable real rights imposed upon immovable. but not for the validity of the contract1494.V. specially subjecting to such security immovable property or real rights over immovable property in case the principal obligation is not complied with at the time stipulated. Real 2. 1492 Art. Essential requisites 1. It must appear in a public instrument1493. and 3.its consideration is that of the principal contract from which it receives life. Characteristics: 1. Real Mortgage A. C.

“in writing.. after receiving them. and thereafter to the principal of his credit. To apply all the fruits.VI. Antichresis A. Obligations of antichretic creditor 1. if owing. by stipulation to the contrary 1498 Art.1495 Characteristics: 1. to the payment of interest. including necessary expenses1497 2. To render an account of the fruits to the debtor 4. To bear the expenses necessary for its preservation and repair VII.”1496 B. Definition and characteristics A contract whereby the creditor acquires the right to receive the fruits of an immovable of the debtor. 1495 Art 2132) 1496 Art 2134 1497 Creditor may avoid said obligation by: a. To pay taxes and charges on the estate. Formal contract – it must be in a specified form to be valid.1498 Characteristics 1. and thereafter to the principal 3. compelling debtor to reacquire enjoyment of the property or b. Chattel Mortgage A.e. Definition and characteristics A contract by virtue of which personal property is recorded in the Chattel Mortgage Register as a security for the performance of an obligation. with the obligation to apply them to the payment of the interest.. Unilateral contract – it produces only obligations on the part of the creditor to free the thing from the encumbrance on fulfillment of the obligation. Accessory contract – it secures the performance of a principal obligation 2. 2140 344 . Accessory contract – it is for the purpose of securing the performance of a principal obligation 2. if owing. Formal contract – registration in the Chattel Mortgage Register is indispensable for its validity 3. i.

Inc. Registration The registration of the chattel mortgage is an effective and binding notice to other creditors of its existence and creates a real right or a lien which. 1500 The rules on preference of credits apply only when two or more creditors have separate and distinct claims against the same debtor who has insufficient property. gives no interest in property. the mortgage is nevertheless binding between the parties. Quasi-Contracts A. But the person in whose favor the law establishes a mortgage has no other right than to demand the execution and the recording of the document. B. Somes. NLRC. Solutio Indebiti - Arises whenever a person unduly delivers a thing through mistake to another who has no right to demand it. specific or general. 76) The preferential right of credit attains significance only after the properties of the debtor have been inventoried and liquidated. 68 SCRA 374 Effect of failure to register chattel mortgage in the chattel mortgage registry: Article 2140 makes the recording in the Chattel Mortgage Register an essential requisite but if the instrument is not recorded. IX. Coquia. Concurrence and Preference of Credits1500 A. B. to the preferred creditor but a preference in application of the proceeds after the sale. (DBP vs. and. and the claims held by his various creditors have been established. therefore. vs. 31 Phil. The registration gives the mortgagee symbolical possession. Meaning of concurrence and preference Concurrence of Credits Preference of Credit Possession by two or more creditors of equal Right held by a creditor to be preferred in rights or privileges over the same property or the payment of his claim above others out of all of the property of the debtor the debtor’s assets 1499 Northern Motors. Negotiorum Gestio - Arises whenever a person voluntarily takes charge of the agency or management of the business or property of another without any power or authority from the latter. Preference creates no lien on property. follows the chattel wherever it goes. (Molina vs. 183 SCRA 328) 345 . being recorded.1499 VIII.

1506 Secs. Sec. 118 of the Public Land Act1505 1503 2. Classification of credits With reference to specific movable property of the debtor. the following claims or liens shall be preferred: (1) Duties. neither is the right lost by the sale of the thing together with other property for a lump sum. the lien may be enforced on the price. 13. 2246 1502 Art. after the payment of duties. 1956] 346 . Exempt Property 1. Present property – those provided under Arts. or malfeasance by public officials committed in the performance of their duties. (2) Claims arising from misappropriation. Property under legal custody and those owned by municipal corporations necessary for governmental purposes D. (3) Claims for the unpaid price of movables sold. provided it has not lost its form. 68. breach of trust. taxes and fees due the State or any subdivision thereof. they shall be satisfied pro rata. so long as they are in the possession of the debtor. exclude all others to the extent of the value of the personal property to which the preference refers.1504 and Sec. Preferred Credits on Specific Movables Those credits which enjoy preference with respect to specific movables. taxes and fees due thereon to the State or any subdivision thereof. B. money or securities obtained by them. 69. and if the movable has been resold by the debtor and the price is still unpaid. 1505 Ibid. 1501 Art. is not liable for the unsatisfied claims of his creditors with said property subject to certain exceptions expressly provided by law. 2247 1503 See Reference 1504 Ibid. 155 and 205 of the Family Code. up to the value of the same. on the movables.1501 If there are two or more credits with respect to the same specific movable property. when the price thereof can be determined proportionally. Rule 39 of the Rules of Court. The Insolvency Law [Act No.1502 C. substance and identity. Future property – a debtor who obtains a discharge from his debts on account of his insolvency. this right is not lost by the immobilization of the thing by destination. on said movables.1506 3.

(12) Credits for rent for one year. (11) Credits for seeds and expenses for cultivation and harvest advanced to the debtor. arising from the contract of tenancy on shares. (9) Credits for transportation. up to the value thereof. repair. 2241 347 . (7) For expenses of salvage. on the goods manufactured or the work done. (10) Credits for lodging and supplies usually furnished to travellers by hotel keepers. upon the goods carried. upon the goods salvaged. on the movables belonging to the guest as long as such movables are in the hotel. until their delivery and for thirty days thereafter. as well as of architects. reconstruction or repair of buildings. (13) Claims in favor of the depositor if the depositary has wrongfully sold the thing deposited. upon said buildings. (8) Credits between the landlord and the tenant. kept or possessed. (5) Credits for the making. upon the fruits harvested. (3) Claims of laborers. within thirty days from the unlawful seizure. repaired. the creditor may demand them from any possessor. In the foregoing cases. (2) For the unpaid price of real property sold. the following claims. upon the price of the sale. (6) Claims for laborers' wages.1507 With reference to specific immovable property and real rights of the debtor. upon the things pledged or mortgaged. mechanics and other workmen. upon the personal property of the lessee existing on the immovable leased and on the fruits of the same. masons. canals or other works. or those guaranteed by a chattel mortgage. if the movables to which the lien or preference attaches have been wrongfully taken. mortgages and liens shall be preferred. safekeeping or preservation of personal property. upon the immovable sold. (4) Credits guaranteed with a pledge so long as the things pledged are in the hands of the creditor. 1507 Art. on the movable thus made. canals or other works. on the share of each in the fruits or harvest. engaged in the construction. engineers and contractors. for the price of the contract and incidental expenses. but not on money or instruments of credit. and shall constitute an encumbrance on the immovable or real right: (1) Taxes due upon the land or building. but not for money loaned to the guests.

1508 Art. upon the immovable preserved or improved. or liens within the purview of legal provisions governing insolvency. upon the property insured. 2243 348 . upon the immovable donated. (8) Claims of co-heirs for warranty in the partition of an immovable among them. upon the real estate mortgaged. (6) Expenses for the preservation or improvement of real property when the law authorizes reimbursement. (2) Credits for services rendered the insolvent by employees. or household helpers for one year preceding the commencement of the proceedings in insolvency. (7) Credits annotated in the Registry of Property.1509 With reference to other property. upon the property affected. for the insurance premium for two years. or illness resulting from the nature of the employment. (4) Claims of furnishers of materials used in the construction. (5) Mortgage credits recorded in the Registry of Property. (5) Credits and advancements made to the debtor for support of himself or herself. shall first be satisfied. upon said buildings. article 2242. during the last year preceding the insolvency. Taxes mentioned in No. 1. 2242 1509 Art. (3) Expenses during the last illness of the debtor or of his or her spouse and children under his or her parental authority. the following claims or credits shall be preferred in the order named: (1) Proper funeral expenses for the debtor. (10) Credits of insurers. if they have no property of their own. (9) Claims of donors or real property for pecuniary charges or other conditions imposed upon the donee. laborers. by attachments or executions. article 2241. in virtue of a judicial order. 1. and No. (4) Compensation due the laborers or their dependents under laws providing for indemnity for damages in cases of labor accident. or children under his or her parental authority who have no property of their own. reconstruction. when approved by the court. and family. canals or other works. real and personal. canals or other works. upon the real property thus divided. or repair of buildings.1508 The claims or credits enumerated in the two preceding articles shall be considered as mortgages or pledges of real or personal property. of the debtor. and only as to later credits.

and expenses incurred in the administration of the insolvent's estate for the common interest of the creditors. or (b) in a final judgment.1511 (11) Taxes and assessments due any city or municipality. These credits shall have preference among themselves in the order of priority of the dates of the instruments and of the judgments.1510 (10) Taxes and assessments due any province. appear in (a) a public instrument. when properly authorized and approved by the court. (9) Taxes and assessments due the national government. without special privilege. (6) Support during the insolvency proceedings. (7) Fines and civil indemnification arising from a criminal offense. 1. 1. respectively. 1. No. No. other than those mentioned in articles 2241. other than those referred to in articles 2241. and 2242. No. No. if they have been the subject of litigation. (14) Credits which. and 2242.1512 (12) Damages for death or personal injuries caused by a quasi-delict. 1. and for three months thereafter.1514 1510 supra 1511 ibid 1512 ibid 1513 Art. No. (13) Gifts due to public and private institutions of charity or beneficence. 2244 1514 Art. shall enjoy no preference. No. and 2242. 2245 349 .1513 Credits of any other kind or class. 1. or by any other right or title not comprised in the four preceding articles. other than those indicated in articles 2241. (8) Legal expenses. 1.

1517 If there are two or more credits with respect to the same specific real property or real rights. if any. shall be added to the free property which the debtor may have. Order of preference of credits Those credits which enjoy preference with respect to specific movables.1522 1515 Art. exclude all others to the extent of the value of the personal property to which the preference refers. 2247 1517 Art. real or personal. after the payment of duties.1519 Those credits which do not enjoy any preference with respect to specific property. after the payment of the credits which enjoy preference with respect to specific property.1516 Those credits which enjoy preference in relation to specific real property or real rights. for the payment of the other credits. and those which enjoy preference. they shall be satisfied pro rata. 2251 350 . as to the amount not paid.1515 If there are two or more credits with respect to the same specific movable property.1520 (2) Common credits referred to in Article 22451521 shall be paid pro rata regardless of dates. after the payment of the taxes and assessments upon the immovable property or real right. 2248 1518 Art. taxes and fees due the State or any subdivision thereof. 2246 1516 Art. 2249 1519 Art. they shall be satisfied pro rata. 2250 1520 supra 1521 ibid 1522 Art. E. exclude all others to the extent of the value of the immovable or real right to which the preference refers. shall be satisfied according to the following rules: (1) In the order established in Article 2244.1518 The excess.

Voluntary insolvency The situation of a debtor who. D. he cannot pay his debts as they fall due. thus. 2 351 . p. 1523 Philippine Commercial Law by C. would not be sufficient to discharge the latter.000 cannot discharge all of them with all of his existing assets. Villanueva.1524 The debtor has sufficient properties in value to meet his debts but there is not enough cash. C. Involuntary insolvency Instituted by three (3) or more resident creditors for an individual debtor whose credits aggregating not less than P1.1523 B.729 1524 Sec. He can ask for the suspension of payments of his debts for a given period within which to convert some of his properties to cash so that he can pay his debts. but foresees the impossibility of meeting them when they respectively fall due. if all made immediately available. voluntarily goes to court to have himself declared as an insolvent so that his assets may be equitably distributed among his creditors. Definition of insolvency The relative condition of man’s assets and liabilities that the former. Suspension of payments Proceedings for suspension of payments seek the postponement of the debts of a debtor who possesses sufficient property to cover his debts.. Insolvency Law A. 1998 Ed.000 accrued in the Philippines against a debtor who has committed any of the acts of insolvency. as a consequence. and who.X. having debts exceeding P1.

unless there is a stipulation to the contrary. the lessee may sublet the thing leased. 1646 1529 Art.1528 B. Rights and obligations of lessor and lessee When in the contract of lease of things there is no express prohibition.1532 1525 Art. However.1530 IV. Lease of Rural and Urban lands A.1529 C.1531 Without prejudice to his obligation toward the sublessor.1526 III. 1643 1526 Art. Prohibitions The lessee cannot assign the lease without the consent of the lessor. Qualified persons Those not covered within the scope as provided for under Articles 1490 and 1491 1527 of the Civil Code. the sublessee is bound to the lessor for all acts which refer to the use and preservation of the thing leased in the manner stipulated between the lessor and the lessee. it shall not be binding upon third persons.1525 II. in whole or in part. 1648 1530 Art. but the relations of principal and agent does not exist between them. Registration Every lease of real estate may be recorded in the Registry of Property. Unless a lease is recorded. 1649 1531 Art. 1644 1527 See Reference 1528 Art. 1650 352 . Lease of things One of the parties binds himself to give to another the enjoyment or use of a thing for a price certain and for a period which may be definite or indefinite. Lease of work or services One of the parties binds himself to execute a piece of work or to render to the other some service for a price certain. LEASE I. without prejudice to his responsibility for the performance of the contract toward the lessor. no lease for more than ninety-nine years shall be valid.

1656 1537 Art.1536 The lessee is obliged: (1) To pay the price of the lease according to the terms stipulated. 1652 1534 Art. 1655 1536 Art. The sublessee is subsidiarily liable to the lessor for any rent due from the lessee. so far as the lessor's claim is concerned.1538 1532 Art.1535 The lessor of a business or industrial establishment may continue engaging in the same business or industry to which the lessee devotes the thing leased. 1654 1535 Art. the sublessee shall not be responsible beyond the amount of rent due from him. the lease is extinguished. If the destruction is partial. However. at the time of the extra-judicial demand by the lessor. unless said payments were effected in virtue of the custom of the place. (2) To use the thing leased as a diligent father of a family.1534 If the thing leased is totally destroyed by a fortuitous event. unless there is a stipulation to the contrary.1537 The lessee may suspend the payment of the rent in case the lessor fails to make the necessary repairs or to maintain the lessee in peaceful and adequate enjoyment of the property leased. to that which may be inferred from the nature of the thing leased.1533 The lessor is obliged: (1) To deliver the thing which is the object of the contract in such a condition as to render it fit for the use intended. devoting it to the use stipulated. 1651 1533 Art. unless there is a stipulation to the contrary. and in the absence of stipulation. (2) To make on the same during the lease all the necessary repairs in order to keep it suitable for the use to which it has been devoted. (3) To maintain the lessee in the peaceful and adequate enjoyment of the lease for the entire duration of the contract. the lessee may choose between a proportional reduction of the rent and a rescission of the lease. according to the custom of the place. 1657 353 . (3) To pay expenses for the deed of lease. Payments of rent in advance by the sublessee shall be deemed not to have been made. in accordance with the terms of the sublease.

If the repairs last more than forty days the rent shall be reduced in proportion to the time . If the lessor fails to make urgent repairs. 1663 354 . He is also obliged to advise the owner. within the shortest possible time. may order the repairs at the lessor's cost.1540 If a dwelling place or any other building intended for human habitation is in such a condition that its use brings imminent and serious danger to life or health. upon the termination of the lease. or only the latter. If the lessor or the lessee should not comply with the obligations set forth in articles 1654 and 1657. even if at the time the contract was perfected the former knew of the dangerous condition or waived the right to rescind the lease on account of this condition. which cannot be deferred until the termination of the lease.including the first forty days .1542 The lessee is obliged to bring to the knowledge of the proprietor. or by ordinary wear and tear.and the part of the property of which the lessee has been deprived. through his negligence. he may rescind the contract if the main purpose of the lease is to provide a dwelling place for the lessee. every usurpation or untoward act which any third person may have committed or may be openly preparing to carry out upon the thing leased. allowing the contract to remain in force.1545 1538 Art. the lessee. he may be deprived of a part of the premises. may be suffered by the proprietor.1543 In both cases the lessee shall be liable for the damages which.1541 If during the lease it should become necessary to make some urgent repairs upon the thing leased. the lessee may terminate the lease at once by notifying the lessor. 1660 1542 Art. although it may be very annoying to him. the lessee is obliged to tolerate the work. with the same urgency. 2 of article 1654. 1662 1543 supra 1544 Art. save what has been lost or impaired by the lapse of time. 1659 1541 Art. of the need of all repairs included in No.1539 the aggrieved party may ask for the rescission of the contract and indemnification for damages. 1658 1539 supra 1540 Art.1544 The lessee shall return the thing leased. When the work is of such a nature that the portion which the lessee and his family need for their dwelling becomes uninhabitable. in order to avoid an imminent danger. and although during the same. or from an inevitable cause. as he received it.

In the absence of a statement concerning the condition of the thing at the time the lease was constituted. they shall be borne equally by both the bailor and the bailee.1547 The lessee is liable for any deterioration caused by members of his household and by guests and visitors. save always when there is a specific stipulation to the contrary. 1680 1551 Art. 1666 1547 Art. earthquake. provided the bailee brings the same to the knowledge of the bailor before incurring them. This burden of proof on the lessee does not apply when the destruction is due to earthquake. is understood to have been for all the time necessary for the gathering of the fruits which the whole estate 1545 Art. unless there is a stipulation to the contrary. storm or other natural calamity. 1665 1546 Art. Special rules for lease of rural/urban lands The lessee shall have no right to a reduction of the rent on account of the sterility of the land leased. or others which are uncommon. 1949 1550 Art.1549 V. when its duration has not been fixed. except when they are so urgent that the reply to the notification cannot be awaited without danger. If the extraordinary expenses arise on the occasion of the actual use of the thing by the bailee. unusual flood. even though he acted without fault. unless he proves that it took place without his fault. or by reason of the loss of fruits due to ordinary fortuitous events. locusts. and which the contracting parties could not have reasonably foreseen.1546 The lessee is responsible for the deterioration or loss of the thing leased. 1668 1549 Art. war. root or trunk.1551 The lease of a piece of rural land. but he shall have such right in case of the loss of more than one-half of the fruits through extraordinary and unforeseen fortuitous events. unless there is proof to the contrary. the law presumes that the lessee received it in good condition. 1667 1548 Art.1548 The bailor shall refund the extraordinary expenses during the contract for the preservation of the thing loaned. 1681 355 . flood. Extraordinary fortuitous events are understood to be: fire. pestilence.1550 Neither does the lessee have any right to a reduction of the rent if the fruits are lost after they have been separated from their stalk.

all in accordance with the custom of the place. food. reciprocally. the incoming lessee or the lessor is under obligation to permit the outgoing lessee to do whatever may be necessary for the gathering or harvesting and utilization of the fruits. Such compensation shall be in addition to the house helper's lodging. although two or more years have to elapse for the purpose. or which it may yield once. However. the head of the family shall give an opportunity to the house helper for at least elementary education. the provisions on partnership and by the customs of the place. 1683 1554 Art.1559 The house helper's clothes shall be subject to stipulation. and medical attendance. Household service Household service shall always be reasonably compensated.1555 VI.1552 The outgoing lessee shall allow the incoming lessee or the lessor the use of the premises and other means necessary for the preparatory labor for the following year. suitable and sanitary quarters as well as adequate food and medical attendance. free of charge. 1690 1558 Art. unless there is a stipulation to the contrary. 1691 1559 Art.1554 The tenant on shares cannot be ejected except in cases specified by law. to the house helper.1560 The head of the family shall treat the house helper in a just and humane manner.1558 No contract for household service shall last for more than two years. 1693 356 . The cost of such education shall be a part of the house helper's compensation. In no case shall physical violence be used upon the house helper. 1685 1556 Art.1557 If the house helper is under the age of eighteen years. the stipulations of the parties. 1684 1555 Art.1561 1552 Art.leased may yield in one year. 1689 1557 Art.1553 Land tenancy on shares shall be governed by special laws. However. Any stipulation that household service is without compensation shall be void. any contract for household service shall be void if thereby the house helper cannot afford to acquire suitable clothing. and. 1682 1553 Art.1556 The head of the family shall furnish. such contract may be renewed from year to year. 1692 1560 Art.

for not exceeding fifteen days. If the house helper leaves without justifiable reason. 1699 357 .1564 If the duration of the household service is not determined either by stipulation or by the nature of the service. mechanics or other employees. that the service shall be terminated at the end of the seventh day from the beginning of the week. (3) If the compensation is paid by the month. at the latest. (2) If the compensation is paid by the week. notice may be given. if the death or personal injury arose out of and in the course of the employment. The employer is also liable for compensation if the employee contracts any illness or disease caused by such 1561 Art. the house helper may demand from the head of the family a written statement on the nature and duration of the service and the efficiency and conduct of the house helper. 1694 1562 Art. on the fifth day of the month. with sufficient means therefor. according to the following rules: (1) If the compensation is paid by the day. the head of the family shall bear the funeral expenses if the house helper has no relatives in the place where the head of the family lives. 1696 1564 Art. he shall be paid the compensation already earned plus that for fifteen days by way of indemnity. except for a just cause. House helpers shall not be required to work more than ten hours a day.1566 VII. Every house helper shall be allowed four days' vacation each month. 1698 1566 Art. Obligation in case of death/injury of laborers Owners of enterprises and other employers are obliged to pay compensation for the death of or injuries to their laborers. notice may be given on any day that the service shall end at the close of the following day.1563 If the period for household service is fixed neither the head of the family nor the house helper may terminate the contract before the expiration of the term.1565 Upon the extinguishment of the service relation.1562 In case of death of the house helper. he shall forfeit any salary due him and unpaid. 1695 1563 Art. even though the event may have been purely accidental or entirely due to a fortuitous cause. that the service shall cease at the end of the month. the head of the family or the house helper may give notice to put an end to the service relation. 1697 1565 Art. with pay. workmen. at the latest on the first business day of the week. notice may be given. If the house helper is unjustly dismissed. Contract of labor A.

cannot claim any compensation if the work should be destroyed before its delivery.1571 An agreement waiving or limiting the contractor's liability for any defect in the work is void if the contractor acted fraudulently. or drunkenness. If the mishap was due to the employee's own notorious negligence.employment or as the result of the nature of the employment. or if the destruction was caused by the poor quality of the material. 1713 1570 Art. the latter and the employer shall be solidarily liable for compensation. or also furnish the material. 1716 1573 Art.1569 If the contractor agrees to produce the work from material furnished by him. The contractor may either employ only his labor or skill. the employer may require that the contractor remove the defect or execute another work. Contract for piece of work By the contract for a piece of work the contractor binds himself to execute a piece of work for the employer.1568 VIII.1573 The contractor who has undertaken to put only his work or skill. unless it should be shown that the latter did not exercise due diligence in the selection or supervision of the plaintiff's fellow worker. This contract shall be governed by the following articles as well as by the pertinent provisions on warranty of title and against hidden defects and the payment of price in a contract of sale. Should the work be not of such quality.1570 The contract shall execute the work in such a manner that it has the qualities agreed upon and has no defects which destroy or lessen its value or fitness for its ordinary or stipulated use. he shall deliver the thing produced to the employer and transfer dominion over the thing. If the contract fails or refuses to comply with this obligation. 1711 1568 Article 1712 1569 Art. in consideration of a certain price or compensation. or voluntary act. 1717 358 . 1567 If the death or injury is due to the negligence of a fellow worker. unless there has been delay in receiving it. 1714 1571 Art. at the contractor's cost. 1567 Art. the employer shall not be answerable. he shall suffer the loss if the work should be destroyed before its delivery. the employer may have the defect removed or another work executed. the compensation shall be equitably reduced. If a fellow worker's intentional or malicious act is the only cause of the death or injury. When the employee's lack of due care contributed to his death or injury.1572 If the contractor bound himself to furnish the material. 1715 1572 Art. the employer shall not be liable for compensation. save when there has been delay in receiving it.

an act of the employer is required. without any fault on the part of the contractor. 1718 1575 Art. after completion. in the absence if stipulation.1577 If the work cannot be completed on account of a defect in the material furnished by the employer. or due to any violation of the terms of the contract. does not imply waiver of any of the cause of action by reason of any defect mentioned in the preceding paragraph. 1722 1579 Art. The contractor is likewise responsible for the damages if the edifice falls. the same should collapse by reason of a defect in those plans and specifications. the sum shall be paid at the time and place of delivery. If the work is to be delivered partially.1574 Acceptance of the work by the employer relieves the contractor of liability for any defect in the work. the price or compensation for each part having been fixed.provided this fact was communicated in due time to the owner. the latter has a right to an equitable part of the compensation proportionally to the work done. 1720 1577 Art. If the material is lost through a fortuitous event. on the one hand. by the duration of the delay and the amount of the compensation stipulated. 1721 1578 Art. 1574 Art. on account of defects in the construction or the use of materials of inferior quality furnished by him. or because of orders from the employer. or (2) The employer expressly reserves his rights against the contractor by reason of the defect.1578 The engineer or architect who drew up the plans and specifications for a building is liable for damages if within fifteen years from the completion of the structure. 1723 359 . and reimbursement for proper expenses made. expected to recognize the same. and he incurs in delay or fails to perform the act. the contractor is entitled to a reasonable compensation. by what the contractor has saved in expenses by reason of the delay or is able to earn by a different employment of his time and industry. unless: (1) The defect is hidden and the employer is not. and on the other hand.1576 If. or due to the defects in the ground. The amount of the compensation is computed. within the same period. 1719 1576 Art. the contract is extinguished. by his special knowledge. he shall be solidarily liable with the contractor. in the execution of the work. If the engineer or architect supervises the construction. unless there is a stipulation to the contrary.1575 The price or compensation shall be paid at the time and place of delivery of the work.1579 Acceptance of the building.

indemnifying the contractor for all the latter's expenses.1581 When a piece of work has been entrusted to a person by reason of his personal qualifications.1580 The owner may withdraw at will from the construction of the work. work. save when there has been a change in the plans and specifications.1582 The contractor is responsible for the work done by persons employed by him. and of the materials prepared. and the usefulness which the owner may obtain therefrom. 1726 1583 Art. the contract is rescinded upon his death. and (2) The additional price to be paid to the contractor has been determined in writing by both parties. 1725 1582 Art. This article is subject to the provisions of special laws. provided: (1) Such change has been authorized by the proprietor in writing.1584 Those who put their labor upon or furnish materials for a piece of work undertaken by the contractor have an action against the owner up to the amount owing from the latter to the contractor at the time the claim is made. The action must be brought within ten years following the collapse of the building. in conformity with plans and specifications agreed upon with the land- owner. In this case the proprietor shall pay the heirs of the contractor in proportion to the price agreed upon. the value of the part of the work done. However. can neither withdraw from the contract nor demand an increase in the price on account of the higher cost of labor or materials. provided the latter yield him some benefit. 1728 360 .1583 The contractor is liable for all the claims of laborers and others employed by him. (2) Renunciation by the contractor of any amount due him from the owner. 1724 1581 Art. the following shall not prejudice the laborers.1585 1580 Art. although it may have been commenced. 1727 1584 Art. The same rule shall apply if the contractor cannot finish the work due to circumstances beyond his control. The contractor who undertakes to build a structure or any other work for a stipulated price. employees and furnishers of materials: (1) Payments made by the owner to the contractor before they are due. and damages. and of third persons for death or physical injuries during the construction.

1586 He who has executed work upon a movable has a right to retain it by way of pledge until he is paid. except in case of fraud or manifest error. 1731 361 . it is understood that in case of disagreement the question shall be subject to expert judgment. If it is agreed that the work shall be accomplished to the satisfaction of the proprietor.1587 1585 Art. If the work is subject to the approval of a third person. 1730 1587 Art. his decision shall be final. 1729 1586 Art.

Samia. Land Registration Act No. LAND TITLES AND DEEDS I. ibid 362 . 66 Phil. 1978 1590 Act 2259 1591 Com. to codify the various other laws relative to registration of real property and real rights. Rights acquired under this system are guaranteed by the government which provides an assurance fund to answer for damages to be suffered by persons thru the operation of this system. 141 1592 Sec. Act No. the court may. and to further strengthen the Torrens system.”1592 B. Act No. 1903. 19361591 which have been subsequently amended by later legislations. 496. orders. It cannot be a shield for the commission of fraud. The Torrens system does not create or vest title. 20. rules and regulations or parts thereof. This method is also known as the Torrens system of land registration. decrees. 496 of February 1. was passed and took effect on February 1. 496. 39. 1588 Angeles vs. Certificate of Title This is the true copy of the decree of registration or the transcription thereof and like the decree shall also be signed by LRA Administrator1593 It takes effect upon the date of entry thereof.D.1589 There are two (2) laws ancillary to Act No. 1903 has not been repealed or abrogated but rather. P. indefeasible and imprescriptible. after appropriate proceedings. in conflict with any provisions of this decree are hereby repealed or modified accordingly. It does not protect a usurper from the true owner. 444 (1938) 1589 Act 496 has been amended by P. and the land covered thereby becomes registered land on that date. upon the landowner’s application. 1529 1593 Sec. These are the Cadastral Law of February 11. It only confirms and records title already existing and vested. Concept and Background A system for registration of land under which. direct the issuance of a certificate of title. 1529 was issued to cope with the growing need of updating the Land Registration Act. otherwise known as the Land Registration Act. No. “all laws.D. 1529 which was enacted on June 11. 19131590 and the Public Land Law of December 1. It does not permit one to enrich himself at the expense of another1588 In order to establish a system of registration by which title recorded became absolute. Torrens System A. Presidential Decree No.

XII.A. time immemorial possession Native Title . 1987 Constitution 1595 Spouses Reyes et at. have been held under a claim of private ownership by ICCs/IPs.1594 B. Citizenship Requirement A.1595 C. Art. fisheries. March 3. or timber. Concept of native title. all other natural resources shall not be alienated. With the exception of agricultural lands. Private corporations may lease not more than 1. Individuals and corporations Alienable lands of the public domain: Only Filipino citizens may acquire not more than 12 hectares by purchase. 2. Concept All lands of the public domain. CA.1997 1596 See R. September 10. coal. petroleum and other mineral oils. 269 SCRA 159. 1594 Sec. or lease not more than 500 hectares. Effects Under the Regalian doctrine.refers to pre-conquest rights to lands and domains which. minerals. wildlife. as far back as memory reaches. 8371 363 . forests. 1998.II. v. which is the source of any asserted right to ownership of land. all forces of potential energy. 295 SCRA 296. and natural resources belong to the state. Regalian Doctrine A. have never been public lands and are thus indisputably presumed to have been held that way since before the Spanish Conquest.1596 III. CA. Cacho v. homestead or grant. All lands not otherwise appearing to be clearly within private ownership are presumed to belong to the State. waters.000 hectares for 25 years renewable for another 25 years. all lands of the public domain belong to the State. flora and fauna.

Where the land has been sold under pacto de retro. b. the latter shall be substituted for the applicant and may continue the proceedings. all the co-owners shall file the application jointly. 1529 (Property Registration Decree) b) Under Sec. Where the land is owned in common.1598 1597 Takes place when the title to land is made of public record for the first time in the name of its lawful owner. the vendor a retro may file an application for the original registration of the land. Those who have acquired ownership of private lands or abandoned river beds by right of accession or accretion. to adjudicate ownership of land Involuntary on the part of the claimants but they are compelled to substantiate their claim or interest through an answer 1598 Sec. it refers to the registration procedure from the filing of the application to the issuance of the original certificate of title in pursuance of the decree of registration. have been in open. Chapter XII. 1945. Under the Torrens system. unless prohibited by the instrument creating the trust. provided. Public Land Act 2. Those who. however. juridical persons may apply for registration of leased agricultural and disposable lands not exceeding 1. No. that should the period for redemption expire during the pendency of the registration proceedings and ownership to the property consolidated in the vendee a retro. continuous. Those who have acquired ownership of private lands by prescription under the provisions of existing laws. 3. Voluntary – by filing with the proper court a) Under P. Those who have acquired ownership of land in any other manner provided for by law. 48 of CA No.D. by way of exception. 14 All these persons must be natural-born Filipino Citizens. Original Registration1597 A. Under PD 1529 a. However. Involuntary – cadastral proceedings Compulsory registration initiated by the government. exclusive and notorious possession and occupation of alienable and disposable lands of the public domain under a bona fide claim of ownership since June 12. Kinds of Original Registration 1. and d. A trustee on behalf of the principal may apply for original registration of any land held in trust by him. c. Who may apply 1. 1987 Constitution) 364 . by themselves or through their predecessors-in-interest. or earlier. (Sec.000 hectares in area for a period of 25 years and renewable for not more than 25 years.IV. 141.

may have their claims officially established by filing applications for the identification and delineation of their claims with the Ancestral Domains Office. continuous. continuous. 3. or for any other cause. 146 SCRA 509) 1599 Sec. 53 (b) 365 . (b) Those who by themselves or through their predecessors in interest have been in open. at the time of institution of the registration proceedings. whether disposable or not. These shall be conclusively presumed to have performed all the conditions essential to a Government grant and shall be entitled to a certificate of title under the provisions of this chapter. (Dir. and notorious possession and occupation of agricultural lands of the public domain. 2. of Lands vs. IAC and ACME Plywood. (c) Members of the national cultural minorities who by themselves or through their predecessors-in-interest have been in open. Under RA 8371 Individual and indigenous corporate claimants of ancestral lands which are not within ancestral domains. respectively. the land was already private land. not received title therefor. exclusive and notorious possession and occupation of lands of the public domain suitable to agriculture. under a bona fide claim of ownership for at least 30 years shall be entitled to the rights granted in sub-section (b) hereof.1599 Notwithstanding the prohibition in the 1973 and 1987 Constitutions against private corporations holding lands of the public domain except by lease. An individual or recognized head of a family or clan may file such application in his behalf or in behalf of his family or clan. exclusive. Under CA 141 (a) Those who prior to the transfer of sovereignty from Spain to the prior United States have applied for the purchase. composition or other form of grant of lands of the public domain under the laws and royal decrees then in force and have instituted and prosecuted the proceedings in connection therewith. if such applicants or grantees and their heirs have occupied and cultivated said lands continuously since the filing of their applications. still a private corporation may institute confirmation proceedings under Section 48(b) of Public Land Act if. under a bona fide claim of acquisition or ownership. but have with or without default upon their part. for at least thirty years immediately preceding the filing of the application for confirmation of title except when prevented by war or force majeure.

D. Filing of Application for Registration by more than one applicant. 8. applicant must be stated therein. and if there is 2. Publication of Notice of Filing of owners. three (3) copies of interest in the property by the sheriff. Filing of Answer or Opposition to quadruplicate or. thereto. citizenship. The application must contain the initial hearing together with all documents or description of the land. no republication is needed. the number of other evidences attached thereto by the Clerk parcels and location threof. 1602 It is at this point that the court acquires jurisdiction over the subject matter This is done by the Administrator who acts as the clerk of court 1603 Republication or amendment of technical description of land is necessary when there is substantial increase of the area of the land. the application the applicant. 10. occupants and those known to have the technical description. encumbrances. if known.1602 with a tracing cloth plan approved by the Bureau of Lands together with two (2) blue 6. 4. city or municipality where property is situated. occupants thereon. names and addresses of adjoining 5. 3. Issuance of decree or order by the court 1600 Must be drawn in a tracing cloth plan Approved only by the Director of Land Management (authority of LRA to approve such plan was withdrawn by P. assessed value of the Application and date and place of hearing property. and all muniments of title in the notice or not. Promulgation of judgment by the court. 57 SCRA 531) 366 . Service of Notice upon contiguous print copies of the same. Registration process and requirements Registration process Requisites of an Application for Original Registration 1. B. The application must be in writing.1600 and sworn to by the applicant or by someone duly authorized in his behalf. Tuason. the nature of title of Court to the Land Registration Authority. If increase is merely minimal. once in the Official Gazette and once in a newspaper of general circulation in the 3. 239 dated July 9. three (3) copies of owners. (Benin vs. status. Transmittal of Application and date of 2. Setting of date for initial hearing by the residence and post office address of the court. the affidavit of its Application by any person whether named in market value. The application must be accompanied Philippines. 1983) 1601 Always at the RTC of the province. and the length of possession. Hearing of the case by the court. the certificate of the last assessment of the property in 7. if any. Survey of the land by the Bureau of Lands 1. The full name. the surveyor’s certificate. the possession of applicant or applicants.1603 9. if none.1601 shall be signed and sworn to by and in behalf of each. signed or a duly licensed private surveyor.

Entry of Decree in the Land Registration Authority.1604 11. 1605 This serves as the reckoning date to determine the 1-year period from which one can impugn the validity of the registration. and Transcription of Decree in the registration book and issuance of Owner’s Duplicate Original Certificate of Title of the applicant by the Register of Deeds upon payment of the prescribed fees. Decree of registration may be reviewed on the ground of fraud and must be filed within 1 year from entry of the decree. 1604 it is not the court but the LRA which issues the decree of confirmation and registration 1 year after issuance of decree. Sending of copy of Decree to the corresponding Register of Deeds. it becomes incontrovertible and amendments of the same will not be allowed except merely in case of clerical errors.1605 12.declaring the decision final and instructing the Land Registration Authority to issue a Decree of Confirmation and Registration. 367 .

award of excessive damages. such party may file a petition in the court that rendered such judgment praying that the said judgment be set aside. not by the persons claiming ownership of the land subject thereof. 1610 An action seeking to transfer or reconvey the land from the registered owner to the rightful owner May be filed even after the lapse of one year from entry of the decree of registration as long as the property has not been transferred or conveyed to an innocent purchaser for value. 368 . Action for Reconveyance1610 6. Petition for Review1609 5. C. Rule 37. Rules of Court Grounds: a. or excusable negligence. Recovery of Damages D. and to substantiate such claim or interest. in effect compelled to go to court to make known their claim or interest therein. or insufficiency of the evidence to justify the decision 1607 Nature: subsidiary remedy.e. (Esconde vs Borlongay. initiated by the filing of a petition for registration by the government. An action for reconveyance does not aim or purport to reopen the registration proceedings and set aside the decree of registration but only to show that the person who secured the registration of the questioned property is not the real owner thereof. 152 SCRA 603) 1611 Here. judgments and orders in land registration cases are appealable to the Court of Appeals or to the Supreme Court in the same manner as ordinary actions Must be filed within 15 days from receipt of the judgment or final order appealed from. on the pain of losing their claim thereto. Cadastral registration1611 A proceeding in rem.D. The action. accident. Appeal1608 4. mistake or excusable negligence which ordinary prudence could not have guarded against b. seeks to transfer or reconvey the land from the registered owner to the rightful owner. accident. 1609 of a Decree Any person may file a petition for review to set aside the decree of registration on the ground that he was deprived of their opportunity to be heard in the original registration case not later than one (1) year after the entry of the decree. The objective of the proceeding is the adjudication of title to the lands or lots involved in said proceeding. newly discovered evidence c. And it is a petition for review of the decree when it is filed within the one year period after such entry. the government does not seek the registration of land in its name. 1529. may be availed only when the judgment has become final and a new trial is not available Grounds: when a judgment is entered against a party through fraud. i. New Trial1606 2. while respecting the decree as incontrovertible. Relief from Judgment1607 3. and the latter are. 1606 Sec. mistake. It is a petition for review of judgment when it is filed after rendition of the decision but before the entry of the decree of registration. fraud. Remedies 1.1. 1608 Under P.

174 SCRA 484. 1613 In voluntary sale of land. 492 (1989)]. July 5. [GR No. the general rule that a purchaser or mortgagee of the land is not required to look further than what appears on the face of the title does not apply. IAC 166 SCRA 519. the purchaser is not required to explore further than what the Torrens title upon its face indicates in quest for any hidden defect or inchoate right that may subsequently defeat his right thereto. sale on execution or for taxes or for any assessment c. GR No. attachments b. b. Well settled is the rule that all persons dealing with property covered by Torrens certificate of title are not required to go beyond what appears on the face of the title.(Bernales vs. no other provision is made in the Decree for the registration of such right or claim (Sec. 336. or any encumbrance thereon. P. 70. CA.D. 381 SCRA 788) 1614 Involuntary dealings affecting registered land which must be registered: a.V. where incidental matters after original registration may be brought before the land registration court by way of motion or petition filed by the registered owner or a party in interest. or any encumbrance thereon. GSIS (365 SCRA 1) where the court ruled that “when the purchaser or mortgagee is a financing institution. (Fule vs. notice of lis pendens Claim or interest is adverse when: a. 1529) An adverse claim is a notice to third persons that someone is claiming an interest on the property or has a better right than the registered owner thereof. Involuntary dealings1614 1612 Takes place when any deed affecting the land is made of public record after the date of its original registration. 5) purchaser with full knowledge of flaws and defects in the title. [Centeno vs CA. 1996) 369 . such right arose subsequent to date of original registration. the purchaser is not required to explore further than what the Torrens Title upon its face indicates in quest for any hidden defect or inchoate right that may subsequently defeat his right thereto.1613 Refer to deeds.. (Francisco vs. claimant’s right or interest in registered land is adverse to the registered owner. When there is nothing on the COT indicating any cloud or vice in the ownership of the property. CA 39 SCRA 221). CA 153 SCRA 330. 3) where a person buys land not from the registered owner but from one whose right to the land has been merely annotated on the COT. (Quiniano vs. the registration of the instrument is the operative act that transmits or transfers title. 102377. 4) purchaser of land the certificate of title contains a notice of lis pendens. 524. boundaries and condition of the lot. adverse claim d. Lu vs. Where there is nothing on the certificate of title to indicate any cloud or vice in the ownership of the property. 139 SCRA 545. Legare. Manipon. instruments or documents which are results of the free and voluntary acts of the parties thereto B. 1st par. Voluntary dealings. 555 (1985)] Exceptions for applicability: 1) purchaser in bad faith [Egao vs. Subsequent Registration1612 A. c. and that any transaction regarding the disputed land is subject to the outcome of the dispute (Sajonas vs CA. 2) sufficiently strong indications to impel closer inquiry into the location.. 17951) The exception to the above rule is embodied in the case of Dela Merced vs. 337).

streets. 3344. Those reserved by the government for public or quasi-public purposes. Those devoted to public service such as towns. and whatever rights they may acquire in the property in any voluntary transaction are subject to the results of the action. Sec. 2. except agricultural. all instruments affecting lands originally registered under the Spanish Mortgage Law may be recorded under Section 113 of this Decree. however long. 1615 Art. Government of P. rivers. IAC.I. Non-Registrable Properties The following lands are not registrable by any private person in his name: 1. walls and fortresses.1615 Public forests are non-alienable public lands. P. cannot convert the same into private property1616 VII. banks and shores. as amended by Act No. residential and resettlement lands are inalienable. The books of registration for unregistered lands provided under Section 194 of the Revised Administrative Code. XIV.D. Dealings with Unregistered Lands1617 The system of registration under the Spanish Mortgage Law is hereby discontinued and all lands recorded under said system which are not yet covered by Torrens title shall be considered as unregistered lands. also Sec. Hereafter. and also to such instruments which are not the willful acts of the registered owner and which may have been executed even without his knowledge or against his consent. shall continue to remain in Notice of lis pendens is intended to constructively advise. (Heirs of Maria Marasigan vs. Mineral lands. 1529. until the land shall have been brought under the operation of the Torrens system. 152 SCRA 253). and may well be inferior and subordinate to those which may be finally determined and laid down therein. 8. 161 (1920) 1617 Sec.. canals. Possession of public forests on the part of the claimant. commercial and industrial. Refer to such writ order or process issued by a court of record affecting registered land which by law should be registered to be effective. The Constitution provides that all natural resources. and 5. 113 370 . Public forests. New Constitution 1616 Vano vs. 3. or warn all people who deal with the property that they so deal with it at their own risk. 41 Phil. 3. plazas. 4. VI. Those devoted to public land use such as public roads.

hour and minute it was presented and received. adverse claim and other instruments in the nature of involuntary dealings with respect to unregistered lands. it appears that it is sufficient in law. said official shall advise the party in interest in writing of the ground or grounds for his refusal. or other voluntary instrument affecting land not registered under the Torrens system shall be valid.force. In case the Register of Deeds refuses its administration to record.D. P. 371 . the nature of the document. the file number and the date as well as the hour and minute when the document was received for recording as shown in the Primary Entry Book. that all instruments dealing with unregistered lands shall henceforth be registered under Section 113 of this Decree. upon the original of the recorded instruments. provided. lease. the entry number. the Register of Deeds shall forthwith record the instrument in the manner provided herein. the Register of Deeds shall endorse among other things.1618 No deed. 113. The recording of the deed and other instruments relating to unregistered lands shall be effected by any of annotation on the space provided therefor in the Registration Book. (c) After recording on the Record Book. id. It shall be understood that any recording made under this section shall be without prejudice to a third party with a better right. and the latter may appeal the matter to the Commissioner of Land Registration in accordance with the provisions of Section 117 of this Decree. the names of the parties. among other particulars. on the face of the instrument. conveyance.1619 16181618 Sec. he shall collect the same amount of fees prescribed for similar services for the registration of deeds or instruments concerning registered lands. shall likewise be admissible to record under this section. attachment and levy. notice of lis pendens. mortgage. returning to the registrant or person in interest the duplicate of the instrument. 1529 1619 Sec. (b) If. unless such instrument shall have been recorded in the manner herein prescribed in the office of the Register of Deeds for the province or city where the land lies. after the same shall have been entered in the Primary Entry Book. with appropriate annotation. certifying that he has recorded the instrument after reserving one copy thereof to be furnished the provincial or city assessor as required by existing law. The Primary Entry Book shall contain. (e) For the services to be rendered by the Register of Deeds under this section. if made in the form sufficient in law. (d) Tax sale. (a) The Register of Deeds for each province or city shall keep a Primary Entry Book and a Registration Book. the date. except as between the parties thereto. 3.

3. 2154 372 . 20 (Globe Mackay vs. without any previous existing lawful relation of which the said act or omission may be said to be a natural outgrowth or incident. Observe honesty and good faith There is no hard and fast rule to determine whether or not the principle may be invoked. act with justice. For the sole intent of prejudicing or injuring another. Abuse of Right Every person must.1623 If something is received when there is no right to demand it. shall return the same to him. TORTS AND DAMAGES Book I – Torts1620 I. or any other means. The declaration is implemented by Art. Which is exercised in bad faith. in the exercise of his rights and in the performance of his duties. There is a legal right or duty 2. Principles A. 22 1624 Art. acquires or comes into possession of something at the expense of the latter without just or legal ground. CA) Sets certain standards which must be observed not only in the exercised of one’s rights but also in the performance of one’s duties. There must be enrichment on the part of the defendant. B. give everyone his due.1624 Certain lawful.1625 1620 An unlawful violation of private right. To give everyone his due. 1622 Elements of Unjust Enrichment: 1. and which gives rise to an action for damages. 2. not created by contract. It is an act or omission producing an injury to another. There is a concomitant injury to the plaintiff. 1621 Art. 19 Contains a mere declaration of principles. and 3. and it was unduly delivered through mistake. and observe honesty and good faith. 3. To act with justice 2. These standards are: 1. 1621 Elements: 1. voluntary and unilateral acts give rise to the juridical relation of quasi- contract to the end that no one shall be unjustly enriched or benefited at the expense of another. the obligation to return it arises. Unjust Enrichment1622 Every person who through an act of performance by another. There is no just cause or legal ground for the enrichment 1623 Art.

1630 Strict liability tort can be committed even if reasonable care was exercised and regardless of the state of mind of the actor at that time. so long as there is a violation of law and damage resulting therefrom. 20 Even if the particular provision of law does not expressly provide for indemnification in case of violation. 1628 Art. wilfully or negligently causes damage to another. shall indemnify the latter for the same. 2142 1626 Art. good customs or public policy shall compensate the latter for the damage. there is liability for damages under this article. Although this chapter covers negligent acts. the latter shall be liable for indemnity if through the act or event he was benefited. Acts Contrary to Law. C. Acts Contrary to Morals Any person who wilfully causes loss or injury to another in manner that is contrary to morals.1627 E.1628 II. Every person who.1630 substantially certain to result exercise due care in from it. Classification of Torts A. contrary to law. public order or public policy (Albeson vs. 21 There is an act which may be legal but which may be contrary to morals. 1625 Art. CA) 1629 They are found in Chapter 2 of the Preliminary Title of the NCC entitled “Human Relations”. 373 .23 1627 Art. the torts mentioned herein are mostly intentional in nature or torts involving malice or bad faith. According to manner of commission: Intentional Negligent Strict Liability Include conduct where the Involve voluntary acts or When the person is made actor desires to cause the omissions which result in liable independent of fault or consequences of his act or injury to others without negligence upon submission believes that the intending to cause the same of proof of certain facts consequences are or because the actor fails to specified by law. Liability without Fault Even when an act or event causing damage to another's property was not due to the fault or negligence of the defendant.1626 D.1629 performing such acts or omissions. good customs.

83 SCRA 237 1633 manufacturing and selling defective products 1634 Art. citing PNB v. (ii) Other corporations. created by law. provided for in the Civil Code. 2. B. d to every person not to As defined. The Direct Tortfeasor 1.1634 1631 i. CA. human relations that “were intended to expand the concept of torts in this jurisdiction by granting adequate legal remedy for the untold number of moral wrongs which is impossible for human foresight to specifically provide for in the statutes. (iii) Corporations.1631 The negligence. and 21 are provisions on liability. products liability. their personality begins as soon as they have been constituted according to law. separate and distinct from that of each shareholder. categories: intentional. partner or member.” 1632 III. Natural Persons Refer to human beings. et al. torts fall into three different cause harm either willfully or negligently. 20 and 21 1632 Aquino. partnerships and associations for private interest or purpose to which the law grants a juridical personality. Arts. negligent and Articles 19. 19. 20. Juridical Persons (i) The State and its political subdivisions. assault and battery. According to scope: general or specific General Specific The catchall provisions on torts It includes trespass.1633 product liability tort. The Tortfeasor A. 44 374 . and effect is that “there is a general duty owe intentional infliction of emotional distress. institutions and entities for public interest or purpose.e. 2005.

218-219. Guardians: a. 221 1638 Requisites of vicarious liability of Parents: 1. or. 2180 Basis: Pater Familias. damage caused by minor children1638 b. Persons Made Responsible for Others 1. The reason for the master’s liability is the negligence in the supervision of his subordinates. The child lives in the company of the parent concerned whether single or married. in conformity with the laws and regulations of their organization. as well as incur obligations and bring civil or criminal actions. Quasi-delicts1636 and the Family Code1637 1. Father. mother: a. or in case of death or incapacity. Owners and managers1639 of establishments: a. Juridical persons may acquire and possess property of all kinds. in the service of the branches in which they are employed. for their employees b. 46 1636 under Art. 1639 To be liable. The child committed a tortuous act to the damage and prejudice of another person 3. 1637 Arts. The child is below twenty‐one (21) years of age 2. the manager must be acting as an employer or with the same authority as the owner. under their authority c. 375 . on the occasion of their functions 1635 Art. In General a.1635 B. living in their company 3. living in their company 2. c. for minors or incapacitated persons b.

The student is in the custody of the school authorities as longs as he is under the control and influence of the school and within its premises whether the semester had not yet begun or has already ended. (Pineda. 2009. the employer is not liable. acting within the scope of their assigned tasks c. even if the employer is not engaged in any business or industry 5. Teachers or heads of establishments: a. so long as they remain in their custody.1643 1640 To make the employer liable. 1642 Art. not the teacher who is held liable where the injury is caused in a school of arts and trade. Torts and Damages.1642 The responsibility shall cease when the persons mentioned prove that they observed all the diligence of a good father of a family to prevent damage. State – acting through a special agent and not when the damage has been caused by the official to whom the task done properly pertains. Liability attaches to the teacher-in-charge. The school and administrators are not liable. 6.academic. Exception: It is only the head of the school. p. The school itself is now solidarily liable with the teacher-in-charge. of arts and trades b. FC if student is no longer a minor – Art. Whenever the school or teacher is being made liable. Art. Liability is imposed only if the pupil is already in the custody of the teacher or head. 2180 1643 The persons liable shall be exempted from liability if they can prove that they have exercised all the diligence of a good father of a family to prevent damage. Employers: a. the parents and those exercising substitute parental authority are not free from liability because Art. no matter how short in time is the deviation. 376 . Civil Code Applies also to teachers of academic institutions. The victim of negligence is likewise required to exercise due care in avoiding injury to himself. 219. The liability extends to acts committed even outside the school so long as it is an official activity of the school. 4. 219 of the Family Code expressly provides that they are subsidiarily liable. it must be established that the injurious or tortuous act was committed at the time the employee was performing his functions. General rule: The teacher-in-charge is liable for the acts of his students. damages caused by employees and household helpers1640 b. for damages caused by their pupils and students or apprentices1641 c.97) 1641 Statutory basis: if student is minor – Art. If there is deviation from the scope of employment. 2180 makes teachers and heads liable for acts of students and apprentices whether the latter are minors or not. 2180. The liability of the teacher subsists whether the school is academic or non.

definition Quasi-delict Elements Whoever by act or omission causes damage (a) fault or negligence of the defendant. teachers engaged in child care are made expressly liable School. id. entity or institution engaged in child are shall have special parental authority and responsibility over the minor child while under their supervision. 1646 Art.1647 respond. and (c) the connection of cause and effect between the fault or negligence of the 1644 Art. teachers is solidary and parents are made subsidiary liable Students involved must be minor Art 2180 Teachers. entity or institution. id. 1647 Article 2176 Difference between Articles 218 & 2180 Art 218 School. judicial guardians or the persons exercising substitute parental authority over said minor shall be subsidiarily liable. FC 1645 Art. instruction or custody. The parents. Authority and responsibility shall apply to all authorized activities whether inside or outside the premises of the school. 221. 218. The school. (b) damages suffered by the plaintiff. admin. or to another. admin. there being fault or negligence is some other person for whose acts he must obliged to pay for the damage done. its administrators and teachers. The respective liabilities of those referred to in the preceding paragraph shall not apply if it is proved that they exercised the proper diligence required under the particular circumstances. head of establishment in Arts and trades are made expressly liable No such express solidary nor subsidiary liability is stated Students involved not necessarily minor 377 .1646 (1) Elements.1644 Those given the authority and responsibility mentioned shall be principally and solidarily liable for damages caused by the acts or omissions of the unemancipated minor.1645 Parents and other persons exercising parental authority shall be civilly liable for the injuries and damages caused by the acts or omissions of their unemancipated children living in their company and under their parental authority subject to the appropriate defenses provided by law. or the individual. 219.

father of a family in the selection and supervision of the employee. 3. Pre-existing obligation interest. Reservation to file action. civil action is Master and Servant Rule solidary1649 impliedly instituted in the criminal action. Applied doctrine of separate civil action. Only acts covered by obligation Penal Law are punished 1650 4. 259 SCRA 426 1650 Barredo vs Garcia. Guilt proven beyond exercised diligence of a good reasonable doubt. Only private concern. or 6. 675 (1997) 1649 Fabre Jr. 73 Phil 607. Bocobo. 1. Crimes affected the public 1. Penal law punishes/ 2. No reservation – it’s available. 4. Employer’s liability is subsidiary Culpa Contractual Culpa Aquiliana The foundation of the liability of the It is a separate source of obligation defendant is the contract independent of contract In breach of contract committed through the In quasi-delict the presumptive responsibility negligence of employee. CA. 5. vs.1648 (2) Distinguished from culpa contractual and culpa criminal Culpa Aquiliana Culpa criminal Culpa Contractual 1. the employer cannot for the negligence of his servants can be erase his primary and direct liability by rebutted by proof of the exercise of due care invoking exercise of diligence of a good in their selection and supervision. 2. between the parties 2. J. incidental to the 3. Preponderance of 3. 1648 Philippine Bank of Commerce v. 1940 378 . Employer’s liability is reservation. 6. Repairs the damage by indemnification. No Respondent Superior. defendant and the damages incurred by the plaintiff. Fault or negligence is corrects the criminal act. father of a family is not 5. just like in criminal independent from crime. 667. Covers all acts that are performance of the faulty or negligent. CA. 336 Phil. Defense of having evidence.

He is solidarily liable with the tortfeasor. 28. or both.1654 1651 Vicarious liability The liability of the vicarious obligor is primary and direct and not subsidiary. subsequently.R. G. not subsidiary. Presumption of negligence on persons indirectly responsible Either in the selection of the servant or employee or in the supervision over him after the selection.1653 His responsibility is not conditioned upon the insolvency of or prior recourse against the negligent tortfeasor. 2194) 1654 De Leon Brokerage v.1652 d. Accordingly. Nature of liability. Feb. the presumption is overcome and he is relieved of the liability 1653 The responsibility of two or more persons who are liable for quasi-delict is solidary (Art. His responsibility is not conditioned upon the insolvency of or prior recourse against the negligent tortfeasor. He is solidarily liable with the tortfeasor. it may be rebutted. joint or solidary? His liability is primary and direct. 15247. Indirect liability for intentional acts A person who himself is not guilty of negligence is made liable for conduct of another. 1962 379 . CA. 1652 The presumption is juris tantum and not juris et de jure. Culpa Aquiliana Crime Only involves private concern Affect the public interest The Civil Code by means of indemnification The Revised Penal Code punishes or merely repairs the damage corrects criminal act Includes all acts in which any kind of fault or Punished only if there is a penal law clearly negligence intervenes covering them Liability is direct and primary in quasi-delict Liability of the employer of the actor- employee is subsidiary in crimes b.1651 c. if the employer shows to the satisfaction of the court that in the selection and supervision of his employee he has exercised the care and diligence of a good father of a family.

The parents or guardians can still be held liable even if the minor is already emancipated provided that he is below 21 years of age. A presumption which juris tantum. In case of disagreement. 2180 1656 Father and Mother shall jointly exercise parental authority over common children.1658 b. (Art. rebuttable‐ overcome by proof having exercised and observed all the diligence of a good father of a family. over 21 years old unless unfit or unqualified d. 211) Persons liable for the act of minors other than parents. 2009 ed. Parental authority is not the sole basis of liability. In Particular1655 a. The liability is present only both under Art 2180 of the NCC and Art 221 of the Family Code if the child is living in his parents’ company. not juris et de jure. disciplining and instructing their children. i. 209 SCRA 519 The basis of liability for the acts or omissions of their minor children is the parental authority that they exercise over them. Guardian De facto guardians are covered. The same foreseability test of negligence should apply to parents when they are sought to be held liable under Art. except for children 18 to 21. over 21 years old unless unfit or disqualified 1657 NCC and FC 1658 Tamagro vs. Parents and other persons exercising parental authority can escape liability by proving that they observed all the diligence of a good father of a family to prevent damages. Child’s actual custodian. p.) 380 . 2180) The burden of proof rests on the parents and persons exercising parental authority 1659 They are relatives and neighbors who take upon themselves the duty to care and support orphaned children without passing through judicial proceedings (Pineda.. the same is also imposed on those exercising substitute and special parental authority. 2. Parents1656 This liability is made natural as logical consequences of the duties and responsibilities of parents exercising parental authority which includes controlling. 2180. CA. Those exercising substitute parental authority b. father's decision shall prevail (Art. 88.e. In this jurisdiction the parent’s liability is vested by law1657 which assumes that when a minor or un emancipated child living with their parent. Oldest sibling. the parents are presumed negligent in t he performance of their duty to supervise the children under their custody. commits a tortuous/act.1659 1655 Art. A teacher in charge is still liable for the acts of their students even if the minor student reaches the age of majority. Surviving grandparents c. NCC The liability is not limited to parents. guardian. a.

3. Employers1660 The employer is liable only if the employee was performing his assigned task at the time the injury was caused.. This includes any act done by the employee in the furtherance of the interest of the employer at the time of the infliction of the injury or damage. exercise of due diligence ins election and supervision of employees b.1661 (1) Meaning of employers Includes any person acting directly or indirectly in the interest of an employer in relation to an employee and shall include the government and all its branches. c. 442 1663 Valenzuela v. p. act/omission was made outside working hours and in violation of company's rules and regulations 1661 Aquino. T. P. all government-owned or controlled corporations and institutions. 2005. 697 1662 Art. 2. subdivisions and instrumentalities. The service is to be rendered in/accordance with orders which the employer has the authority to give all times. or on the occasion of their functions. 97. The vicarious liability of the employer attaches only when the tortious conduct of the employee relates to. Torts and Damages.D. CA 381 . or is in the course of his employment. (b) Services rendered in accordance with orders which employer has authority to give Person for whom the services are to be performed controls not just the result but also the means and manner to achieve such end or result. d. The elicit act of the employee was on the occasion or by reason of the functions entrusted to him..1663 1660 Defenses available to employers: a. The employee was chosen by the employer personally or through another. Owners and Managers of Establishments and Enterprises They are liable for damage caused by their employees in the service of the branches in which they are employed. Second Ed.1662 (2) Requisites (a) Employee chosen by employer or through another 1. as well as non‐profit private institutions. or organizations.

They perform functions beyond their office. et al. the employer can then be made liable on the basis of the presumption that the employer failed to exercise diligentissimi patris families in the selection and supervision of its employees. Once the employee’s fault is established. the liability is primary. 6. 103 of the Revised Penal Code is subsidiary. 2176 and 2180 of the Civil Code.R. (5) Nature of employer’s liability If based on culpa aquiliana under Art. e. Vasquez. employees oftentimes wear different hats. 145804. admittedly. Navidad. State The State is only liable for the negligent acts of its officers.. (c) Illicit act of employee was on the occasion or by reason of the functions entrusted to him It is not necessary that the task performed by the employee is his regular job or that which was expressly given to him by the employer. Feb. G. title or designation but which. It is enough that the task is indispensable to the business or beneficial to the employer. 212 SCRA 637 1665 LRTA v. The State has voluntarily assumed liability for acts done through special agents. 382 .1667 1664 Filamer Christian Institute v. 2003 1666 For. nevertheless.1666 (4) Defense of diligence in selection and supervision It is a defense that the employer exercised proper diligence in the selection and supervision of negligent employee. Public officials with a particular assigned tasks but is specially commissioned to do such task foreign to his usual assigned governmental function.) 1667 Two Kinds: 1. are still within the call of duty (Castilex Industrial Corporation v.1664 (d) Presumption of negligence The employer is presumed to be negligent and the presumption flows from the negligence of the employee. while that under Art.1665 (3) Employer need not be engaged in business or industry As long as their employees and household helpers acted within the scope of their assigned task. IAC. agents and employees when they are acting as special agents.

The parent can instill more lasting discipline more lasting disciple on the child than the teacher and so should be held to a greater accountability than the teacher or the head for the tort committed by the child. The primary purpose of a tort action is to provide compensation to a person who was injured by the tortious conduct of the defendant. The State assumes the role of an ordinary employer and will be held liable for the special agent’s torts (Fontanilla vs Malianan) 1668 There is really no substantial difference distinction between the academic and nonacademic schools in so far as torts committed by their students are concerned. 2194 1671 People v. Any person who has been injured by reason of a tortious conduct can sue the tortfeasor. 2180. it being unnecessary that the same be actually produced. commissioned to perform non-governmental function.1671 It is an act or omission producing an injury to another. 324 1672 Defendants in tort cases can either be natural or artificial being. Private person – not a public official. Concept of Act Any bodily movement tending to produce some effect in the external world.1672 V. without any previous existing lawful relation of which the said act or omission may be said to be a natural outgrowth or incident. Preventive remedy is available in some cases. if done for their benefit. 1669 in place of parents 1670 Art. C. aid. However teachers are not expected to have the same measure of responsibility as that imposed on parent for their influence over the child is not equal in degree. 183 SCRA 309. they acting in loco 1669 parentis. cooperate in. encourage. promote. to the same extent and in the same manner as if they have performed the wrongful act themselves. Gonzales. they are each liable as a principal. The same vigilance is expected from the teacher over the student under their control and supervision. advice. or who approve of it after it is done. Corporations are civilly liable in the same manner as natural persons. as the possibility of its production is sufficient. A government commissioning a special person for a special task is acting thru a special agent within the meaning of Art. Act of Omission and Its Modalities A. Proximate Cause 2. instigate. 1670 IV. as such. 383 . Joint Tortfeasors All the persons who command. Teachers and heads of establishments of arts and trades1668 The basis of the teacher’s vicarious liability is. countenance. or abet the commission of a tort. f. whatever the nature of the school where he is teaching.

it is first necessary to determine if the cause-in-fact. the inquiry shifts to the question of limit of the defendant’s liability. A. 384 . Definition That cause which in natural and continuous sequence.1676 4. an act or omission that is considered producing the result after the actor’s in law to result in a consequence. without which the result would not have occurred. the inquiry stops. Distinguished from Intervening Cause Proximate Cause Intervening Cause A cause that is legally sufficient to result in One which comes into active operation in liability. Distinguished from Immediate Cause Proximate Cause Immediate Cause A cause that directly produces an event and The last event in a chain of events though without which the event would not have not necessarily the proximate cause of what occurred. 1674 The directness approach is being applied in this jurisdiction 1675 Black’s Law Dictionary. defendant’s negligence was the cause-in-fact of the damage to the plaintiff. so that negligent act or omission has occurred. 9th Ed. If it is. unbroken by any efficient intervening cause. 3. Test Cause-in-fact Test Policy Test1674 In determining the proximate cause of the If the defendant’s negligence was not the injury. 1677 Ibid. It is necessary that there be proof that defendant's conduct is a factor in causing plaintiff's damage. Concept 1.1677 1673 Primary cause remains the proximate cause even if there is an intervening cause which merely cooperated with the primary cause and which did not break the chain of causation. 1676 Ibid. liability can be imposed on the actor.1675 follows.1673 2. produces the injury.

show that the infection of the wound by tetanus was an efficient intervening cause later or between the time Javier was wounded to the time of his death. although acting independently. are in combination the direct and proximate cause 1678 Example: The medical findings. 2. Caltex 385 . 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. 1682 Africa vs. Concurrent Causes The actor is liable even if the active and substantially simultaneous operation of the effects of a third person’s innocent. One which destroys the causal connection between the negligent act and the injury and thereby negatives liability. 9th Ed. 1681 Ibid.1678 5.1682 Where several causes producing the injury are concurrent and each is an efficient cause without which the injury would not have happened. tortious or criminal act is also a substantial factor in bringing about the harm so long as the actor’s negligent conduct actively and continuously operate to bring about harm to another. 77 Phil 1038) 1679 supra 1680 Black’s Law Dictionary. Cause in Fact 1. (People vs.1681 injury.1680 B. Substantial Factor Test The conduct is the cause-in-fact of the damage if it was a substantial factor in producing the injuries. Where the concurrent or successive negligent acts or omissions of two or more persons. Distinguished from Remote and Concurrent Proximate Cause1679 Remote Cause Concurrent Cause A cause that does not One of two or more necessarily or immediately causes that simultaneously produce an event or produce a result. Rellin. In order to be a substantial factor in producing the harm. the causes set in motion by the defendant must continue until the moment of the damage or at least down the setting in motion of the final active injurious force which immediately produced or preceded the damage.

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 unreasonably subjected to a general but definite class of risk which made the actor’s conduct negligent. CA. Even if a particular injury was not foreseeable. 2202. see Reference 1685 Banzon v. Natural and Probable Consequences1684 Where the defendant’s liability is recognized only if the harm or injury suffered is the natural and probable consequence of his act or omission complained of. it is obviously the consequence for the actor must be held legally responsible. 1683 The responsibility of two or more persons who are liable for quasi-delict is solidary. they become joint tort-feasors and are solidarily liable for the resulting damage under Article 21941683 of the Civil Code.damage would not have resulted without the fault or negligence of the defendant 2. 175 SCRA 297 1686 Reyes & Puno 386 . his act or omission is the legal cause thereof. Legal Cause 1. 1684 Art. that is.of a single injury to a third person. Adequacy . To be negligent.1685 Involves 2 things: 1.the fault of the defendant would normally result in the damage suffered by the obligee1686 2. Foreseeability Involves the question of probability. and it is impossible to determine what proportion each contributed to the injury. Where the particular harm was reasonably foreseeable at the time of the defendant’s misconduct. action to avoid it. C. even though his act alone might not have caused the entire injury. Causality . the existence of some real likelihood of some damage and the likelihood is of such appreciable weight reasonably to induce. either of them is responsible for the whole injury. the risk is still foreseeable if possibility of injury is foreseeable.

D. Remained active itself. There is no efficient intervening cause if the force created by the negligent act or omission have either: 1. show that the infection of the wound by tetanus was an efficient intervening cause later or between the time Javier was wounded to the time of his death (People vs. Condition Cause Condition The active force The passive situation. the defendant is said not to be liable. The active “cause” of the harm The existing “conditions” upon which the cause operated. or 2.1689 1687 A cause is not an intervening cause if it was already in operation at the time the negligent act is committed. Rellin. 387 . 1688 Example: The medical findings. Created a new active risk of being acted upon by the active force that caused the result. Created another force which remained active until it directly caused the result.1688 E. or 3. The intervention of unforeseen and unexpected cause is not sufficient to relieve the wrongdoer from consequences of negligence if such negligence directly and proximately cooperates with the independent cause in the resulting injury. Cause vs. Efficient Intervening Cause1687 One which destroys the causal connection between the negligent act and the injury and thereby negatives liability. Foreseeable intervening causes cannot be considered sufficient intervening causes. 77 Phil 1038) 1689 If the defendant has created only a passive static condition which made the damage possible.

defendant knew of such position of the plaintiff c. A legal wrong inflicted by the defendant. have avoided the consequences of the negligence of the injured party. by exercising reasonable care and prudence. The contributory negligence of the party injured will not defeat the claim for damages if it is shown that the defendant could. The party charged is required to act instantaneously. 1691 Black’s Law Dictionary. and if the injury cannot be avoided by the application of all the means at hand after the peril is or should have been discovered. was not aware of the danger or risk brought about by the prior fraud or negligent act. Damage resulting to the plaintiff therefrom 1690 Doctrine of Last Clear Chance or Discovered Peril Elements: a. Elements of Right 1. plaintiff was in a position of danger by his own negligence b. might have avoided injurious consequences to the plaintiff notwithstanding the plaintiff’s negligence. defendants concurrently negligent as against 3rd persons Cases when the doctrine was held inapplicable (PICCA) 1. 2. which act must be not only hurtful. If the actor. a passenger. defendant had the least clear chance to avoid the accident by exercise of ordinary care but failed to exercise such last clear chance and d. though negligent. and 2. If the plaintiff was not negligent. joint tortfeasors 2.1691 An act causing damage. Legal Injury A. There must be damnum et injuria. B. filed an action against a carrier based on contract. VI. Where the plaintiff. 5. If defendant’s negligence is a concurrent cause and which was still in operation up to the time the injury was inflicted. F. by the exercise of reasonable care and prudence. Last Clear Chance1690 The negligence of the plaintiff does not preclude a recovery for the negligence of the defendant where it appears that the defendant. 9th Ed. but wrongful. Concept The violation of a legal right. 3. accident occurred as proximate cause of such failure Who may invoke: plaintiff Inapplicable to: 1. 388 . 4.

Family relations 1. Interference with contractual relations b. 2. Unfair competition 4. Economic relations a. D. conversion. and a.Meddling with or disturbing famiy relations b.Intriguing to cause another to be alienated from his friends 3. b. C. intentional infliction of emotional distress. battery. false imprisonment. Violation of Right or Legal Injury The loss. 2. assembly and petition. Political relations a. assault. 1. press. c. Classes of Injury Injury to persons Injury to property Injury to relations 1. trespass to chattels. hurt or harm which results from the injury. fraud a. 389 . etc. Violation of right to suffrage b. and 2. Criminal conversation 4. Loss of consortium 3. trespass to land. Social relations 5. Violation of other political rights1692 1692 freedom of speech. Alienation of affection 3.

privacy and peace of mind of his neighbors and other persons and any act of a person of meddling and prying into the privacy of another is punishable as an actionable wrong. and ii. 3. and recognizes the privacy of letters and other private communications. The Rules of Court provisions on privileged communication. Rules of Court. 1696 illegal detention 1697 Zones of privacy under the NCC.That every person shall respect the dignity. Interference with persons and property Physical harms Non-physical harms 1. 9th Ed. Concept A tort committed by someone acting with general or specific intent. 390 .1693 Include conduct where the actor desires to cause the consequences of his act or believes that the consequences are substantially certain to result from it. General 1. The RPC makes a crime the: i. Classes a.Violation of persons security.” Although this chapter covers negligent acts. Violation of privacy1697 b. Infliction of emotional distress a. and 5. anti‐wiretapping law. 4. assault1695 2. violation of secrets by an officer. personality. trespass to dwelling. False imprisonment1696 a. battery1694 3. RPC. 2. Appropriation 1693 Blacks’ Law Dictionary. and special laws: 1. They are found in Chapter 2 of the Preliminary Title of the NCC entitled “Human Relations. 1694 physical injury 1695 grave threat . Invasion of privacy is likewise an offense in special laws such as the: i. secrecy of bank deposits act. 2. the torts mentioned herein are mostly intentional in nature or torts involving malice or bad faith. and iii. physical 1. That a public officer or employee or any private individual shall be liable for damages for any violation of the rights and liberties of another person.VII. ii. Intentional Torts A. revelation of trade and industrial secrets. Violation of personal dignity injuries 2.

false light in the public eye a. Interference with personal property d. If the interference is by the parents of the spouse. Intentional Physical Harms a. Interference with relations The gist of the tort is an interference with one spouse’s mental attitude toward the other and the conjugal kindness of marital relations resulting in some actual conduct which materially affects it. B. Disturbance of peace of mind b. public disclosure of private facts 4. It extends to all cases of wrongful interference in the family affairs of others whereby one spouse is induced to leave the other spouse or conduct himself or herself that the comfort of married life is destroyed. Malicious prosecution 7. conversion 5. General (1) Concept It is an intentional infliction of a harmful or offensive bodily contact which offends a reasonable person’s sense of dignity or places him in apprehension of immediate bodily harm or offensive act. Interference with rights to persons and property 1. malice must be proven. Intrusion c. Defamation b. Trespass to land b. trespass to chattels 4.3. (2) Kinds1698 1698 supra 391 .

c. (2) Assault1701 It is the tort of acting intentionally and voluntarily causing the reasonable apprehension of an immediate harmful or offensive contact. It is unlawful obstruction or deprivation of freedom from restraint of movement. 1702 Illegal detention 1703 It applies to private as well as governmental detention. the other is conscious of the confinement or is harmed by it. (2) Elements 1. he acts intending to confine the other within boundaries fixed by the actor. Violation of persons security. b. his act directly or indirectly results in such a confinement. they are already covered by Article 2176. The Revised Penal Code and the New Civil Code requires intent or bad faith. see Reference Physical injuries which resulted because of negligence or imprudence is not included in this article. Cause something to enter another's land. physical injuries1699 (1) Battery1700 It is the intentional. and 3. 1699 Art. unprivileged. 392 . d. and either harmful or offensive contact with the person of another. 1700 Physical Injury 1701 Grave Threat Includes bodily injuries causing death. 1703 An actor is liable for false imprisonment if: 1. Intrude without authorization and without privilege under law 2. 33. False Imprisonment1702 It is a restraint of a person in a bounded area without justification or consent. Trespass to Land (1) Concept It is a tort that is committed when a person unlawfully invades the real property of another. 2.

(3) Intriguing to cause another to be alienated from his friends. there are damages resulting from the conversion 1705 supra 1706 Art. General (1) Concept (2) Kinds1705 b. e. (4) Vexing or humiliating another on account of his religious beliefs. The creditor possesses to himself the mortgaged property with violence and against the will of the debtor. 2) Conversion An intentional exercise of dominion and control over a chattel which so seriously interferes with the right of another to control it that the actor may justly be required to pay the other the full value of the chattel. lowly station in life.1706 1704 Elements: 1. 3. or other personal condition. place of birth. personality. 26 393 . though they may not constitute a criminal offense. 2. Interference with Personal Property 1) Trespass to Chattels It is where a person took possession of the property of another in bad faith. Intentional Non-Physical Harms a. the plaintiff has clear legal ownership or right to possession of the property at the time of the conversion. prevention and other relief: (1) Prying into the privacy of another's residence: (2) Meddling with or disturbing the private life or family relations of another. The following and similar acts. the defendant's conversion by a wrongful act or disposition of plaintiff's property rights. shall produce a cause of action for damages. privacy and peace of mind of his neighbors and other persons. physical defect. Violation of Personal Dignity Every person shall respect the dignity.1704 2.

eavesdropping. fright. and chagrin. 4. The conduct of the defendant was intentional or in reckless disregard of the plaintiff. It includes: 1. worry. 3. horror. or 1707 It is any highly unpleasant mental reaction such as extreme grief. c. as to go beyond all possible bounds of decency. and 4. 1708 It is conduct that is so outrageous in character.embarrassment. for the defendant’s benefit or advantage. invading his home. shock.shame. It includes cases when the defendant invades one’s privacy by looking from outside. 1709 Even if there was no intentional infliction of emotional distress in one case. The plaintiff must show that: 1. anger. and so extreme in degree.1709 d. Violation of Privacy (1) Appropriation It consists of appropriation. 1710 Example: “peeping-tom 394 . invading one’s privacy by looking from outside. disappointment. Infliction of emotional distress1707 An intentional conduct of defendant that results in extreme emotional distress of plaintiff.1708 3. prying into the privacy of one’s home. nausea. and utterly intolerable in civilized society.1710 Consists in the intrusion upon the plaintiff’s solitude or seclusion. There was a causal connection between the defendant’s conduct and the plaintiff’s mental distress. 2. The conduct was extreme and outrageous. humiliation. 2. (2) Intrusion It is not limited to cases where the defendant physically trespassed into another’s property. the SC recognized the possibility that one may be made liable for the tort of intentional infliction of emotional distress. mental suffering and anguish. of the plaintiff’s name or likeness. and to be regarded as atrocious. The plaintiff’s mental distress was extreme and severe.

annoy or humiliate. civil suit. Malice is the inexcusable intent to injure. Malicious Prosecution An action for damages brought by one against another whom a criminal prosecution. (3) Public disclosure of private facts Consists of a cause of action in publicity. The interest to be protected in this tort is the interest of the individual in not being made to appear before the public in an objectionable false light or false position. 2. May be committed by the media by distorting a news report. Disturbance of Peace of Mind1713 f. portraying him as a war hero. and that the action was finally terminated with an acquittal. given to private information about the plaintiff. 395 . the circumstance that the publication was made with intent of gain or for commercial and business purposes invariably serves to aggravate the violation of the right 1712 Example: Defendant was held liable for damages when he published an unauthorized biography of a famous baseball player exaggerating his feats on the baseball field. Publicity is given to any private or purely personal information about a person. even though it is true and no action would lie for defamation. The gist of the action is putting legal process in force regularly. like libel or defamation. suit or proceeding in favor of the defendant therein. hence an action for libel is also warranted. the action for invasion of privacy will afford an alternative remedy. (Spahn vs. oppress.1712 e. CA (1997) Elements: 1. vex. persistent and unwanted telephone calls. and Regardless of whether or not such publicity constitutes a criminal offense. after the termination of such prosecution. The prosecutor was actuated or impelled by legal malice. The fact of the prosecution and the further fact that the defendant was himself the prosecutor. 3. 2. 1713 See Emotional Distress 1714 Drilon vs. That in bringing the action. or other legal proceeding has been instituted maliciously and without probable cause.1714 1711 Requisites: 1. the prosecutor acted without probable cause. for mere purpose of vexation or injury. It is a non‐defamatory falsehood in that a false impression is conveyed. of a highly objectionable kind.1711 (4) False light in the public eye It is a tort committed by putting a person in a false light before the public. Messner) If the publicity given to the plaintiff is defamatory. 5. Without the latter’s consent.

RPC RPC considers the statement defamatory if it is an imputation of circumstance tending to cause the dishonor. made in good faith. or speech delivered in said proceedings or of any other act performed by public officers in the exercise of their functions. 1717 Presence of probable cause signifies absence of malice. g. status. (1) Defenses (a) Absence of elements Absence of malice1717 signifies good faith on the part of the defendant. In order to escape liability. of any judicial. or any act. or contempt of a natural or juridical person. and 2. It is a public and malicious imputation of a crime. if no good intention or justifiable motive for making it is shown. legislative or other official proceedings which are not of confidential nature. 353. It must be defamatory b. or of a vice or defect. It must be given publicity d. or to blacken the memory of one who is dead. or of any statement. The victim must be identifiable Test in determining the defamatory character of the imputation: A charge is sufficient if the words are calculated to induce the hearers to suppose and understand that the person/s against whom they were uttered were guilty of a certain offense. communication to a single individual is sufficient publication. General rule: Every defamatory imputation is presumed to be malicious. or circumstance tending to cause the dishonor. condition. real or imaginary. In order to escape criminal responsibility. 1716 Art. it must be shown that at least a third person could identify him as the object of the libelous publication. omission. slander and libel. discredit. The communication must be made in the performance of a “legal. report. the defendant may claim that the statements made are privileged.” 1715 Requisites for one to be liable for defamatory imputations: a. good faith may even be based on mistake of law. even if it be true. It must be malicious c.1716 It has two varieties. Dissemination to a number of persons is not required. or social duty. or reputation. A private communication made by any person to another in the performance of any legal. without any comments or remarks. Defamation1715 Defamation is tarnishing the reputation of someone. 396 . discredit or contempt of natural or juridical person or to blacken the memory of one who is dead. A fair and true report. It is not sufficient that the offended party recognized himself as the person attacked or defamed. it is not enough for the offender to say that he expresses therein no more than his opinion or belief. moral or social duty. Exceptions: 1. or to hold the person/s up to public ridicule. moral. virtue. or are sufficient to impeach their honesty.

1718 formerly deceit 1719 esp. i. by itself. or reckless misrepresentation made to induce another to act to his or her detriment. 9th Ed.1721 Half-truths are likewise included. it is actionable if the withholding of that which is not stated makes that which is stated absolutely false. h. Misrepresentation upon a mere matter of opinion is not an actionable deceit. The defendant is liable if he employed deceit. 397 . superior power or abuse of confidence in successfully having sexual intercourse with another even if he satisfied his lust without promising to marry the offended party. when the conduct is willful 1720 Black’s Law Dictionary. Seduction Seduction.1722 It may not even matter that the plaintiff and the defendant are of the same gender. 1721 Ibid. enticement.1720 A tort arising from a knowing misrepresentation. concealment of material fact. is an act contrary to morals. but in some cases1719 it may be a crime. (b) Privilege Two kinds: Absolutely privilege Qualifiedly privilege Not actionable even if the author acted in Not actionable unless found to have been bad faith made without good intention or justifiable motive. good customs and public policy. 1722 There is liability even if there is no breach of promise to marry. Fraud or Misrepresentation1718 Usually a tort.

integrity and good faith. j. Kinds1725 2. 398 . society. 1723 which prohibits acts of oppression by either capital or labor against the other 1724 supra 1725 See no. such exercise of the right to terminate must be consistent with the general principles provided for under articles 19 and 21. However.. NCC. 2-5. Unjust Dismissal It is a basic rule that an employer has a right to dismiss an employee in the mann er and on the grounds provided for under the NCC. If the dismissal is done anti‐ socially or oppressively then the employer should be deemed to have violated Article 1701.1723 NCC and Article 21. Interference with relations 1. This may be done by false imputation of misdeed to justify dismissal or any similar manner of dismissal which is done abusively. If the dismissal is for a valid cause.. T. below 1726 Aquino. observe mutual love. Concept1724 b. respect and fidelity. Second Ed. Interference with such may result in the tort liability of alienation of affection. his dismissal is consistent with the employer’s right to protect his interest in seeing to it that his employees are performing their jobs with honesty. The right to dismiss an employee should not be confused with the manner in which the right is exercised and the effects flowing therefrom. An employer may be held liable for damages if the manner of dismissing the employee is contrary to morals. General a. If there is non‐ compliance with said provisions. Torts and Damages. 480 The Family Code imposes on the spouses the obligation to live together. C. the employer may be held liable for damages. Alienation of affection This onsists of depriving one spouse of the affection.1726 The gist is an interference with one spouse’s mental attitude toward the other and the conjugal kindness of marital relations resulting in some actual conduct which materially affects it. 68). Family Relations a. p. 2005. companionship and comfort of the other. good customs and public policy. and render mutual help and support (Art.

and by him who has carnal knowledge of her knowing that she is married. c. Rule under Article 2201 and 2202 Civil Code 1) If in bad faith: defendant is liable for all natural and probable consequences of his act or omission.1728 3. whether the same is foreseen or unforeseen. shall produce a cause of action for damages. Loss of consortium The loss of conjugal fellowship and the impairment or destruction of sexual life. Interference with contractual relations Any third person who induces another to violate his contract shall be liable for damages to the other contracting parties. Intriguing to cause another to be alienated from his friends A person who committed affirmative acts intended to alienate the existing friendship of one with his friends is liable for damages. If a spouse does not perform his or her duty to the other.1731 1727 Adultery 1728 Art.1730 The existence of a contract is necessary and the breach must occur because of the alleged act of interference. 333. morals and good customs. 1729 Pineda. Meddling with or disturbing family relations Meddling with or disturbing the private life or family relations of another" and "similar acts". b. 1314 1731 Malice is not essential. prevention and other relief. Social Relations a. "though they may not constitute a criminal offense. b. RPC Liability for adultery or concubinage based on the law on torts: not only moral damages but also for other appropriate damages. 399 . No action can be maintained if the contract is void. 2004 1730 Art. Criminal conversation1727 Committed by the married woman who shall have sexual intercourse with a man not her husband. Economic Relations a. he may be held liable for damages for such omission because the same is contrary to law. A spouse has a legal obligation to live with his or her spouse.1729 4. although the marriage be afterwards declared void.

(8) The right to the equal protection of the laws. and effects against unreasonable searches and seizures. (10) The liberty of abode and of changing the same. machination or any unjust or oppressive or highhanded method shall give rise to a right of action by a person who thereby suffers damage. passing off and disparagement of products b. Violation of right to suffrage1733 b. (11) The privacy of communication and correspondence. below 400 . papers. 2) If in good faith: defendant is liable only for consequences that can be foreseen 1732 Article 27 For a defendant to be liable. Cases included: a.1732 5. (2) Freedom of speech. defeats. who directly or indirectly obstructs. interference c. the plaintiff must show that the former’s conduct was purely malicious and served no legitimate purpose. or that any trade or competitive motive was absent. Unfair competition Unfair Competition in agricultural. (4) Freedom from arbitrary or illegal detention. deceit. (5) Freedom of suffrage. or any private individual. (7) The right to a just compensation when private property is taken for public use. (3) Freedom to write for the press or to maintain a periodical publication. b. (6) The right against deprivation of property without due process of law. Violation of other political rights Any public officer or employee. or industrial enterprises. commercial. or in labor. house. violates or in any manner impedes or impairs any of the following rights and liberties of another person shall be liable to the latter for damages: (1) Freedom of religion. Political Relations a. misappropriation d. monopolies and predatory pricing 1733 see b (5). (9) The right to be secure in one's person. through the use of force. intimidation .

no injury is done" or "no injury is done to a person who consents" 401 . Consent Plaintiff gives permission. (14) The right to be free from involuntary servitude in any form. one cannot hold another liable in tort for actions to which one has con sented. (12) The right to become a member of associations or societies for purposes not contrary to law. 1734 Art. or from being induced by a promise of immunity or reward to make such confession. and (19) Freedom of access to the courts. The defendant is free from liability if he can prove that at the time of the commi ssion. (15) The right of the accused against excessive bail. or from being forced to confess guilt. (18) Freedom from excessive fines. Absence of element Defendant may not avail of any of the defenses if there is an absence of element. except when the person confessing becomes a State witness. to have a speedy and public trial. express or implied. to be informed of the nature and cause of the accusation against him. This is frequently summarized by the phrase "volenti non fit injuria. and to have compulsory process to secure the attendance of witness in his behalf. that what would otherwise be tortious is instead privileged. the plaintiff knew of the act of interference or omission. unless the same is imposed or inflicted in accordance with a statute which has not been judicially declared unconstitutional.1734 6. (16) The right of the accused to be heard by himself and counsel."1735 It operates when the claimant either expressly or implicitly consents to the risk of loss or damage. to meet the witnesses face to face. Typically. or cruel and unusual punishment. 32 1735 "to a willing person. (13) The right to take part in a peaceable assembly to petition the Government for redress of grievances. b. (17) Freedom from being compelled to be a witness against one's self. Privilege 1. Defenses a.

3. 1738 See also Persons. not intended or likely to cause death or serious bodily harm. military. engaging in conduct that otherwise would be tortuous.1736 An actor is privileged to use reasonable force. Self-defense and defense of others Reasonable force can be used where one reasonably believes that such force is necessary to protect oneself or a third party from immediate harm. etc. regulatory inspectors. But. 24. according to the discovery rule: if the injury is discovered after the four-year period. A waiver may not casually be attributed to a person when the terms thereof do not explicitly and clearly evidence an intent to abandon a right vested in such person. Dec. 2. prison officials. Waiver of Rights. Authority of Law Police. mental health workers. supra 402 . 1980) The four-year prescriptive period is reckoned from the date when the tortious act was committed. The self‐defense privilege extends to protecting total strangers as well. Prescription The following actions must be instituted within four (4) years: (1) Upon an injury to the rights of the plaintiff. 5. Necessity Allows the defendant to interfere with the property interests of an innocent party in order to avoid a greater injury.1737 d. must in the first place be couched in clear and unequivocal terms which leave no doubt as to the intention of a person to give up a right or benefit which legally pertains to him. 4. to defend himself against unprivileged harmful contract which he reasonably believes that another is about to inflict. 1755. Waiver1738 To be valid and effective. Defense of property An individual is privileged to use reasonable force to prevent a tort against her real or personal property. 1736 threatened battery 1737 Art. 1146 (As amended by PD No. (2) Upon a quasi-delict. the reckoning point is the date of discovery and not the date of commission of the act. c.

or the doing of something which a prudent and reasonable man would not do. IAC. 1918 403 . 1173) 1743 PNR v.R. 2215(4) No person shall be responsible for those events which cannot be foreseen. B. G. Force majeure General rule: It is a complete defense and a person is not liable if the cause of the damage is a fortuitous event. would do. CA. Good Father of a Family or Reasonably Prudent Man1742 A reasonable man is deemed to have knowledge of the facts that a man should be expected to know based on ordinary human experience. 336 Phil.1741 Involve voluntary acts or omissions which result in injury to others without intending to cause the same or because the actor fails to exercise due care in performing such acts or omissions. G.1744 1739 Art. Exception: assumption of risk 1740 Art. Jan.R. Mar. he is one who takes precautions against any harm when there is something before him to suggest or warn him of the danger or to foresee it. guided by those considerations which ordinarily regulate the conduct of human affairs. No. 1173 1741 Philippine Bank of Commerce v. e. L‐12406. 676 (1997) 1742 The only standard of conduct used in the Philippines (Art. Exception: It is merely a partial defense and the courts may mitigate the damages if the loss would have resulted in any event. Negligence A.1739 VIII. or which through foreseen were inevitable. No. 667.1743 The Supreme Court described a good father of a family by first stating who is not. 1993 1744 Picart v.1740 The omission to do something which a reasonable man. Concept The omission of that degree of diligence which is required by the nature of t he obligation and corresponding to the circumstances of the persons. Smith. 22. He is not and is not supposed to be omniscient of the future. of the time and pl ace. 15. rather. 7054.

NCC. unless the emergency in which he finds himself is brought about by his own negligence. The following are circumstances to be considered: 1. 1173 If the law or contract does not state the diligence which is to be observed in the performance. is not guilty of negligence. Alternative course of action 6. 253 SCRA 303) 1746 Emergency rule exempts common carriers 1747 Rule 133. Emergency Rule1745 One who suddenly finds himself in a place of danger. Evidence The quantum of proof required is preponderance of evidence. and is required to act without time to consider the best means that may be adopted to avoid the impending danger. Standard of Care 1.1747 1745 Applicable only to situations that are sudden and unexpected such as to deprive actor of all opportunity for deliberation But action must still be judged by the standard of the ordinary prudent man Absence of foreseeability An individual will nevertheless be subject to liability if the emergency was brought about by his own negligence (Valenzuela v. Art. Gravity of harm to be avoided 5. 2. Time 2. Emergency 4. 404 . Unreasonable risk of Harm If the risk is of such magnitude as to outweigh what the law regards as the utility of the act. C. Social value or utility of activity 7. Place 3. Person exposed to the risk E. RoC Exception: When the rules or the law provides for cases when negligence is presumed. CA. that which is expected of a good father of a family shall be required.1746 D. if he fails to adopt what subsequently and upon reflection may appear to have been a better method.

2184 1749 Art.1750 Presumption of negligence of the common carrier arises in case of loss. et al vs.1749 Prima facie presumption of negligence of the defendant arises if death or injury results from his possession of dangerous weapons or substance except when such possession or use is indispensable to his occupation or business. Res ipsa loquitur1751 “The thing or transaction speaks for itself. The accident was of a kind which ordinarily does not occur in the absence of someone’s negligence. destruction or deterioration of the goods. F. William Van Buskirk) 405 . 1748 Art. and 3.” It is a rule of evidence peculiar to the law of negligence which recognizes that prima facie negligence may be established in the absence of direct proof. or in case of death or injury of passengers except upon proof of exercise of extraordinary diligence. It is disputably presumed that a driver was negligent if he had been found guilty of reckless driving or violating traffic regulations at least twice for the next preceding two months. Presumption of Negligence 1. The instrumentality which caused the injury was under the exclusive control and management of the person charged with negligence. the owner is presumed negligent if he was in the vehicle and he could have used due diligence to prevent the misfortune. 2. Martinez. 1751 Requisites: 1.1748 The driver of a motor vehicle is presumed negligent if at the time of the mishap. Legal Provisions In motor vehicle mishaps. absence of explanation by the defendant. and furnishes a substitute for specific proof of negligence. he was violating any traffic regulation. 2185 1750 Art. 2188 Proof of possession of dangerous weapons or substances required. 2. The injury suffered must not have been due to any voluntary action or contribution on the part of the person injured. The doctrine is not applicable if there is direct proof of absence or presence of negligence.D. (S.

things. 1752 They are called “complete” defenses because they completely bar recovery as opposed to partial defenses which only serve to mitigate liability. There is no liability even if there is damage because there was no injury. there is no legal injury. Complete1752 a. Assumption of risk1756 Volenti non fit injuria: One is not legally injured if he has consented to the act complained of or was willing that it should occur. 1755 Literal translation: Damage without injury Consequences must be borne by the injured alone 1756 Doctrine of Assumption of Risk Intentional exposure to a known danger. 406 . Absence of element (1) Due diligence1753 Diligence required by law/contract/depends on circumstances of persons. Plaintiff’s acceptance of risk (by law/contract/nature of obligation) has erased defendant’s duty so that his negligence is not a legal wrong. Defenses 1. Damnum absque injuria1755 A principle that involves damage without injury. places. Accident or fortuitous event1754 c. G. Authority of law By specific provision of law. b. One who voluntarily assumed the risk of an injury from a known danger cannot recover in an action for negligence or an injury is incurred. e. therefore no liability is incurred. d. 1753 supra 1754 ibid. (2) Acts of public officers In the lawful exercise of their functions. Applies to all known danger.

There is assumption of risk if the plaintiff in advance has expressly waived his right
to recover damages for the negligent act of the defendant.1757

f. Last clear chance1758

g. Prescription

The following actions must be brought within ten (10) years from the time the right
of action accrues:

(1) Upon a written contract;
(2) Upon an obligation created by law;
(3) Upon a judgment1759

The following actions must be instituted within four (4) years:

(1) Upon an injury to the rights of the plaintiff;
(2) Upon a quasi-delict.1760

The time for prescription for all kinds of actions, when there is no special provision
which ordains otherwise, shall be counted from the day they may be brought.1761

h. Waiver

A person cannot contract away his right to recover damages resulting from
negligence. Such waiver is contrary to public policy and cannot be allowed. However, the
waiver contemplated by this prohibition is the waiver of the right to recover before the
negligent act was committed.

If waiver was made after the cause of action accrued, the waiver is valid and may be
construed as a condonation of the obligation.

i. Double recovery

The plaintiff cannot recover damages twice for the same act or omission of the
defendant.1762

1757
A person cannot contract away his right to recover damages resulting from negligence; the same is
contrary to public policy (Pleasantville Dev't. Corp vs. CA ,253 SCRA 10)
1758
supra
1759
Art. 1144
1760
Art. 1146
1761
Art. 1150
1762
Art. 2177

407

IX. Special Liability in Particular Activities

A. General

1. Concept

B. Products Liability1763

1. Manufacturers or Processors

a. Elements

Defects resulting from design, manufacture, construction, assembly and erection,
formulas and handling and making up, presentation or packing of their products, as well as
for the insufficient or inadequate information on the use and hazards thereof

The plaintiff should allege and prove that:

1) The product was defective;
2) The product was manufactured by the defendant;
3) The defective product was the cause of his injury.
b. Consumer Act1764

Any Filipino or foreign manufacturer, producer, and any importer, shall be liable for
redress, independently of fault, for damages caused to consumers by defects resulting from
design, manufacture, construction, assembly and erection, formulas and handling and
making up, presentation or packing of their products, as well as for the insufficient or
inadequate information on the use and hazards thereof.

A product is defective when it does not offer the safety rightfully expected of it,
taking relevant circumstances into consideration, including but not limited to:
a) presentation of product;
b) use and hazards reasonably expected of it;
c) the time it was put into circulation.

A product is not considered defective because another better quality product has
been placed in the market.

1763
Law which governs the liability of manufacturers and sellers for damages resulting from defective
products. It is meant to protect the consumers by providing safeguards when they purchase or use
consumer products (Aquino, T., Torts and Damages, 2005, Second Ed.)
Based on fraud, warranty, negligence or strict liability
1764
R.A. 7394

408

The manufacturer, builder, producer or importer shall not be held liable when it
evidences:

a) that it did not place the product on the market;
b) that although it did place the product on the market such product has no defect;
c) that the consumer or a third party is solely at fault.1765
The tradesman/seller is likewise liable when;

a) it is not possible to identify the manufacturer, builder, producer or importer.
b) the product is supplied, without clear identification of the manufacturer,
producer, builder or importer;
c) he does not adequately preserve perishable goods. The party making payment to
the damaged party may exercise the right to recover a part of the whole of the payment
made against the other responsible parties, in accordance with their part or responsibility in
the cause of the damage effected.1766

The service supplier is liable for redress, independently of fault, for damages caused
to consumers by defects relating to the rendering of the services, as well as for insufficient or
inadequate information on the fruition and hazards thereof.

The service is defective when it does not provide the safety the consumer may
rightfully expect of it, taking the relevant circumstances into consideration, including but not
limited to:

a) the manner in which it is provided;
b) the result of hazards which may reasonably be expected of it;
c) the time when it was provided.
A service is not considered defective because of the use or introduction of new
techniques.

The supplier of the services shall not be held liable when it is proven:

a) that there is no defect in the service rendered;
b) that the consumer or third party is solely at fault.1767

The suppliers of durable or nondurable consumer products are jointly liable for
imperfections in quality that render the products unfit or inadequate for consumption for
which they are designed or decrease their value, and for those resulting from inconsistency
with the information provided on the container, packaging, labels or publicity

1765
Art. 97
1766
Art. 98
1767
Art. 99

409

messages/advertisement, with due regard to the variations resulting from their nature, the
consumer being able to demand replacement to the imperfect parts.

If the imperfection is not corrected within thirty (30) days, the consumer may
alternatively demand at his option:

a) the replacement of the product by another of the same kind, in a perfect state of
use;
b) the immediate reimbursement of the amount paid, with monetary updating,
without prejudice to any losses and damages;
c) a proportionate price reduction.

The parties may agree to reduce or increase the term specified in the immediately
preceding paragraph; but such shall not be less than seven (7) nor more than one hundred
and eighty (180) days.

The consumer may make immediate use of the foregoing alternatives when by virtue
of the extent of the imperfection, the replacement of the imperfect parts may jeopardize the
product quality or characteristics, thus decreasing its value.

If the consumer opts for the alternative under sub-paragraph (a) and replacement of
the product is not possible, it may be replaced by another of a different kind, mark or model.
Any difference in price that may result thereof shall be supplemented or reimbursed by the
party which caused the damage, without prejudice to the provisions of the second, third and
fourth paragraphs.1768

Suppliers are jointly liable for imperfections in the quantity of the product when, in
due regard for variations inherent thereto, their net content is less than that indicated on the
container, packaging, labeling or advertisement, the consumer having powers to demand,
alternatively, at his own option:

a) the proportionate price
b) the supplementing of weight or measure differential;
c) the replacement of the product by another of the same kind, mark or model,
without said imperfections;

d) the immediate reimbursement of the amount paid, with monetary updating
without prejudice to losses and damages if any.

The provisions of the fifth paragraph of Article 99 shall apply to this Article. The
immediate supplier shall be liable if the instrument used for weighing or measuring is not
gauged in accordance with official standards.1769
1768
Art. 100
1769
Art. 101

410

The service supplier is liable for any quality imperfections that render the services
improper for consumption or decrease their value, and for those resulting from
inconsistency with the information contained in the offer or advertisement, the consumer
being entitled to demand alternatively at his option:

a) the performance of the services, without any additional cost and when applicable;
b) the immediate reimbursement of the amount paid, with monetary updating
without prejudice to losses and damages, if any;
c) a proportionate price reduction.

Reperformance of services may be entrusted to duly qualified third parties, at the
supplier's risk and cost.

Improper services are those which prove to be inadequate for purposes reasonably
expected of them and those that fail to meet the provisions of this Act regulating service
rendering.1770

When services are provided for the repair of any product, the supplier shall be
considered implicitly bound to use adequate, new, original replacement parts, or those that
maintain the manufacturer's technical specifications unless, otherwise authorized, as regards
to the latter by the consumer.1771

The supplier's ignorance of the quality imperfections due to inadequacy of the
products and services does not exempt him from any liability.1772

The legal guarantee of product or service adequacy does not require an express
instrument or contractual exoneration of the supplier being forbidden.1773

The stipulation in a contract of a clause preventing, exonerating or reducing the
obligation to indemnify for damages effected, as provided for in this and in the preceding
Articles, is hereby prohibited, if there is more than one person responsible for the cause of
the damage, they shall be jointly liable for the redress established in the pertinent provisions
of this Act. However, if the damage is caused by a component or part incorporated in the
product or service, its manufacturer, builder or importer and the person who incorporated
the component or part are jointly liable.1774

Any person who shall violate any provision of this Chapter or its implementing rules
and regulations with respect to any consumer product which is not food, cosmetic, or
hazardous substance shall upon conviction, be subject to a fine of not less than Five

1770
Art. 102
1771
Art. 103
1772
Art. 104
1773
Art. 105
1774
Art. 106

411

thousand pesos (P5,000.00) and by imprisonment of not more than one (1) year or both
upon the discretion of the court.

In case of juridical persons, the penalty shall be imposed upon its president, manager
or head. If the offender is an alien, he shall, after payment of fine and service of sentence, be
deported without further deportation proceedings.1775

C. Nuisance1776

1. Nuisance Per Se and Nuisance Per Accidence

Per se Per accidens

Nuisance at all times and under all Nuisance by reason of circumstances,
circumstances regardless of location and location, or surroundings.
surrounding.

2. Public Nuisance and Private Nuisance

Public Private

Affects the community or a considerable Affects only a person or a small number of
number of persons. persons.

3. Attractive Nuisance

One who maintains on his premises dangerous instrumentalities or appliances of a
character likely to attract children in play and who fails to exercise ordinary care to prevent
children from playing therewith or resorting thereto is liable to a child of tender years who is
injured thereby, even if the child is technically a trespasser in the premises.1777

D. Violation of Constitutional Rights1778

1. Violation of Civil Liberties1779

E. Violation of Rights Committed by Public Officers1780

1775
Art. 107
1776
For definition, see Art. 694, supra
1777
Doctrine of Attractive Nuisance
1778
It is not necessary that the defendant should have acted with malice/bad faith to be liable.
1779
supra, under Political Relations
1780
Ibid.

412

F. Provinces, Cities and Municipalities

Provinces, cities and municipalities shall be liable for damages for the death of, or
injuries suffered by any person by reason of the defective condition of roads, streets, bridges,
public buildings and other public works under their control and supervision.1781

G. Owner of Motor Vehicle

In motor vehicle mishap, the owner is solidarily liable with his driver, if the former,
who was in the vehicle, could have by the use of due diligence, prevented the misfortune. It
is disputably presumed that a driver was negligent, if he had been found guilty of reckless
driving or violating traffic regulations at least twice within the next preceding two
months.

If the owner was not in the motor vehicle, the provisions of Article 2180 are
applicable.1782

H. Proprietor of Building or Structure or Thing

The proprietor of a building or structure is responsible for the damages resulting
from its total or partial collapse, if it should be due to the lack of necessary repairs.1783

Proprietors shall also be responsible for damages caused:

(1) By the explosion of machinery which has not been taken cared of with due
diligence, and the inflammation of explosive substances which have not been kept in
a safe and adequate place;

(2) By excessive smoke, which may be harmful to persons or property;

(3) By the falling of trees situated at or near highways or lanes, if not caused by force
majeure;

(4) By emanations from tubes, canals, sewers or deposits of infectious matter,
constructed without precautions suitable to the place.1784

If damages referred to in Articles 2190 and 2191 1785 should be the result of any
defect in the construction mentioned in Article 1723,1786 the third person suffering damages

1781
Art. 2189
1782
Art. 2184
1783
Art. 2190
Third persons who suffered damages may proceed only against the engineer or architect or contractor
if the damage referred to in Articles 2190 and 2191should be a result of any defect in construction.
Nevertheless, actions for damages can still be maintained under Article 2176 for damages resulting
from proprietor’s failure to exercise due care in the maintenance of his building and that he used his
property in such a way that he injured the property of another.
1784
Art. 2191

413

may proceed only against the engineer or architect or contractor in accordance with said
article, within the period therein fixed.1787

I. Head of Family

The head of a family that lives in a building or a part thereof, is responsible for
damages caused by things thrown or falling from the same.1788

X. Strict Liability1789

A. Animals

1. Possessor and User of an Animal

General rule: The possessor of an animal or whoever may make use of the same is
responsible for the damages which it may cause although it may escape or be lost.

Exception: When the damage was caused by force majeure or by the person who
suffered the damage.1790

B. Nuisance

1. Classes

a) Per se or per accidents;

b) Public or Private1791

2. Easement Against Nuisance

Every building or piece of land is subject to the easement which prohibits the
proprietor or possessor from committing nuisance through noise, jarring, offensive
odor, smoke, heat, dust, water, glare and other causes.1792

1785
supra
1786
See Reference
1787
Art. 2192
1788
Art. 2193
1789
When the person is made liable independent of fault or negligence upon submission of proof of
certain facts specified by law.
Strict liability tort can be committed even if reasonable care was exercised and regardless of the state
of mind of the actor at that time.
1790
Art. 2183
1791
supra
1792
Art. 682

414

police and other laws and regulations. factories and shops may be maintained provided the least possible annoyance is caused to the neighborhood. 683 1794 supra 415 .1793 C. Products Liability 1. Consumer Act1794 1793 Art. health. Subject to zoning.

1797 Nominal damages are adjudicated in order that a right of the plaintiff. 2221 416 . (3) Nominal. Under Art. (5) Liquidated. 3. which are more than nominal but less than compensatory damages. Damage and the amount must be proven by competent evidence. Classification 1. (2) Moral. Only proximate damages. 2. The amount should be fair and just and commensurate to the damage. BOOK II – DAMAGES1795 I. 2205 1797 Art.1796 Willful injury to property may be a legal ground for awarding moral damages if the court should find that. 2. 1796 Art. 2197 of the Civil Code Damages may be: (1) Actual or compensatory. may be recovered when the court finds that some pecuniary loss has 1795 General Principles of Damages: 1.1798 Temperate or moderate damages. under the circumstances. or (6) Exemplary or corrective. 2220 1798 Art. (4) Temperate or moderate. (2) For injury to the plaintiff's business standing or commercial credit. General Considerations A. According to purpose Damages may be recovered: (1) For loss or impairment of earning capacity in cases of temporary or permanent personal injury. may be vindicated or recognized. can be recovered. The same rule applies to breaches of contract where the defendant acted fraudulently or in bad faith. such damages are justly due. “Competent” means that it is admissible. not remote or speculative. which has been violated or invaded by the defendant. and not for the purpose of indemnifying the plaintiff for any loss suffered by him.

2224 1800 Art. According to manner of determination No proof of pecuniary loss is necessary in order that moral. 2226 1801 Art. liquidated or compensatory damages.1801 3. 2216 1803 Bouvier’s Dictionary. in addition to the moral. may be adjudicated. arising from an act injurious in itself. to be paid in case of breach thereof. liquidated or exemplary damages. from the nature of the case. as when some particular loss arises from the uttering of slanderous words. The assessment of such damages. 750 417 . but injurious only in its consequences as when the words become actionable only by reason of special damages insuing. or such as arise from an act indifferent and not actionable in itself.1799 Liquidated damages are those agreed upon by the parties to a contract. temperate. 2229 1802 Art. Special and ordinary Special Ordinary Those which arise directly but not necessarily Those which necessarily and by implication or by implication of law.been suffered but its amount cannot. is left to the discretion of the court. temperate. from the act or of law result from the act or default default complained of. actionable in themselves.1800 Exemplary or corrective damages are imposed.1803 1799 Art. except liquidated ones. added to ordinary damages. according to the circumstances of each case.1802 4. be provided with certainty. These are super complained of. by way of example or correction for the public good. nominal. p.

C. 2200 1805 Malonzo vs. Value of loss.1804 B. Requisites 1. net income/earnings which the business was affected by the wrongful act or breach. Actual and Compensatory Damages A. the basis should be one of the 11 cases specified in Article 22081807 of the Civil Code. Component Elements 1. unrealized profit Loss of earning capacity Loss of profits Variables considered are: May be determined by considering the average profit for the preceding years 1. Concept Comprehends not only the value of the loss suffered but also that of the profits which the obligee failed to obtain. Plaintiff must allege the basis of his claim for attorney’s fees in the complaint. 2. Galang. conjecture or guesswork as to the fact and amount of damages. life expectancy multiplied by the number of years during 2. but must depend on actual proof that damages had been suffered and on evidence of the actual amount.II. 1804 Art. It is due to the plaintiff and not to the counsel. 109 Phil.1806 2.1805 Actual damages must be proved and a court cannot rely on speculation. Alleged and proved with certainty Actual or compensatory damages cannot be presumed but must be duly proved. 22 SCRA 839 1807 See Reference 418 . 16 1806 Rangas vs. Raya. Attorney’s fees and expenses of litigation They are actual damages. Not speculative Remote and speculative damages are not recoverable.

malice or wanton attitude. 1810 Art. 2201 419 . furthermore. 3. the obligor shall be responsible for all damages which may be reasonably attributed to the non-performance of the obligation. a loan or forbearance of money 1809 i.e. except when or until demand can be established with reasonable certainty.. 3. Extent or scope of actual damages 1. Where the demand is established with reasonable certainty. When the obligation is breached and it consist of payment of sum of money:1808 a.. D. Interest Award of interest in the concept of actual and compensatory damages. and which the parties have foreseen or could have reasonably foreseen at the time the obligation was constituted. as well as the accrual thereof is imposed as follows: 1. the rate of legal interest shall be 12% per annum from such finality until its satisfaction. No interest shall be adjudged on unliquidated claims or damages. The interest due should be that which may have been stipulated in writing. The rate of interest. When the obligation. not constituting a loan or forbearance or money.e. the interest due shall itself earn legal interest from the time it is judicially demanded. the interest shall begin to run from the time the claim is made judicially or extrajudicially. In case of fraud.1810 1808 i. When the judgment of the court awarding the sum of money becomes final and executory. from judicial or extra-judicial demand under and subject to the provisions of Article 1169 of the Civil Code. bad faith. the rate of interest shall be 12% per annum to be computed from default.1809 2. 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 obligation. is breached: An interest on the amount of damages to be awarded may be imposed at the discretion of the court at the rate of 6% per annum. b. In the absence of stipulation.

abduction. (7) Libel. serious anxiety. or other lascivious acts. (5) Illegal or arbitrary detention or arrest. To recover damages. In construing and applying this Article.1812 In the adjudication of moral damages. the sentimental value of property. the provisions of Article 2200 must be considered and taken into account. may be considered. It is not necessary that such damages have been foreseen or could have reasonably foreseen by the defendant. (2) Quasi-delicts causing physical injuries. Though incapable of pecuniary computation. 2. and similar injury. slander or any other form of defamation. (6) Illegal search. III. 2202 1812 Art. moral damages may be recovered if they are the proximate result of the defendant's wrongful act for omission. besmirched reputation. fright. real or personal. mental anguish. Moral Damages A. the amount of loss must not only be capable of proof but must actually be proven. Concept Moral damages include physical suffering. wounded feelings.1811 The amount should be that which would put plaintiff in the same position as he would have been if he had not sustained the wrong for which he is now getting his compensation or reparation. In crimes and quasi-delicts The defendant shall be liable for all damages which are the natural and probable consequences of the act and omission complained of. (3) Seduction. Uncertainty as to the precise amount is not necessarily fatal.1813 B. social humiliation. 1811 Art. moral shock. (4) Adultery or concubinage. 2217 1813 Art. 2218 420 . rape. When recoverable In the following and analogous cases: (1) A criminal offense resulting in physical injuries.

Nominal Damages A.1815 The parents of the female seduced. abduction. NCC1818 3. 2219 1817 Art. The same rule applies to breaches of contract where the defendant acted fraudulently or in bad faith. or abused. material and moral. 29. such damages are justly due.1817 1. 26. In cases of malicious prosecution1819 IV. descendants. (9) Acts mentioned in Article 309. 1814 Any person who shows disrespect to the dead.1816 Willful injury to property may be a legal ground for awarding moral damages if the court should find that. and 35. 34 & 35. Law presumes damage although actual or compensatory damages are not proven. raped. abducted. 28. Nominal damages cannot co-exist with actual or compensatory damages. 3 of this article. 27. Concept Small sums fixed by the court without regard to the extent of the harm done to the injured party. 21. referred to in No.1814 (10) Acts and actions referred to in Articles 21. 28. 34. 26. under the circumstances. and brothers and sisters may bring the action mentioned in No. In seduction. or wrongfully interferes with a funeral shall be liable to the family of the deceased for damages. 9 of this article. ascendants. 2220 1818 See Reference 1819 supra 421 . The spouse. They are damages in name only and are allowed simply in recognition of a technical injury based on a violation of a legal right. rape and other lascivious acts Victim and parents are included. 2. 32. in the order named. 27. 30. 1815 See reference 1816 Art. may also recover moral damages. 29. 32. In acts referred to in Arts. (8) Malicious prosecution.

Rules governing in case of breach of contract Interest may.1822 B. VI. When awarded In cases where the resulting injury might be continuing and possible future complications directly arising from the injury. which has been violated or invaded by the defendant. When awarded Nominal damages are adjudicated in order that a right of the plaintiff. 2210 422 . Concept These are damages. and may be recovered when the court finds that some pecuniary loss has been suffered but its amount cannot be proved with certainty. 2226 1823 Art. and not for the purpose of indemnifying the plaintiff for any loss suffered by him. may be vindicated or recognized. B. while certain to occur are difficult to predict. Concept Those agreed upon by the parties to a contract. temperate damages can and should be awarded on top of actual or compensatory damages. Temperate or Moderate Damages A. which are more than nominal but less than compensatory. Liquidated Damages A. to be paid in case of breach thereof. in the discretion of the court. 2221 1821 Article 2224 Civil Code 1822 Art.1823 1820 Art. in such cases there is no incompatibility between actual and temperate damages.1820 V. be allowed upon damages awarded for breach of contract.1821 B.

1829 1824 Art. In quasi-delicts If the defendant acted with gross negligence. When recovered 1. before the court may consider the question of granting exemplary in addition to the liquidated damages. In case liquidated damages have been agreed upon. the court will decide whether or not they should be adjudicated.VII. Concept Imposed. temperate or compensatory damages before the court may consider the question of whether or not exemplary damages should be awarded. although no proof of loss is necessary in order that such liquidated damages may be recovered.1825 2. 2234 423 . Such damages are separate and distinct from fines and shall be paid to the offended party. by way of example or correction for the public good.1824 B. temperate. 2231 1827 Art. 2232 1828 Art. 2229 1825 Art. in addition to the moral.1827 C. Requisites Exemplary damages cannot be recovered as a matter of right. or malevolent manner. the plaintiff must show that he is entitled to moral. liquidated or compensatory damages. oppressive.1826 3. 2230 1826 Art. In criminal offenses When the crime was committed with one or more aggravating circumstances. In contracts and quasi-contracts If the defendant acted in a wanton. nevertheless. fraudulent. 2233 1829 Art. Exemplary or Corrective Damages A.1828 While the amount of the exemplary damages need not be proved. the plaintiff must show that he would be entitled to moral. temperate or compensatory damages were it not for the stipulation for liquidated damages. reckless.

and the indemnity shall be paid to the heirs of the latter. if deceased was obliged to give support (for period not more than 5 years) d.1831 1830 As of 2008.1830 even though there may have been mitigating circumstances. 18. for a period not exceeding five years. such indemnity shall in every case be assessed and awarded by the court. In crimes and quasi-delicts causing death 1.000 b. had no earning capacity at the time of his death. Medical & Hospital Bills 2. In addition: (1) The defendant shall be liable for the loss of the earning capacity of the deceased. Moral damages 424 . (2) If the deceased was obliged to give support according to the provisions of article 291. Robert Brodett y Pajaro. may demand support from the person causing the death. Damages for death a. 2206 Damages recoverable in case of death: 1. 2008) 1831 Art. it is P75.VIII. Loss of earning capacity unless deceased had permanent physical disability not caused by defendant so that deceased had no earning capacity at time of death c. the exact duration to be fixed by the court. In death caused by breach of conduct by a common crime The amount of damages for death caused by a crime or quasi-delict shall be at least three thousand pesos. unless the deceased on account of permanent physical disability not caused by the defendant. Damages in Case of Death A. Jan. (3) The spouse. Minimum amount: P50. Support.000 (People vs. the recipient who is not an heir called to the decedent's inheritance by the law of testate or intestate succession. legitimate and illegitimate descendants and ascendants of the deceased may demand moral damages for mental anguish by reason of the death of the deceased.

In contracts. Duty of Injured Party 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. Graduation of Damages A. (2) Plaintiff has derived some benefit as a result of the contract.1836 1832 Art. (3) In cases where exemplary damages are to be awarded. (4) The loss would have resulted in any event. 2203 1833 Art. the defendant has done his best to lessen the plaintiff's loss or injury. 2214 1835 Art. In crimes The damages to be adjudicated may be respectively increased or lessened according to the aggravating or mitigating circumstances.1835 4. (5) Since the filing of the action. 2227 425 . 2204 1834 Art. 2215 1836 Art. In quasi-delict The contributory negligence of the plaintiff shall reduce the damages that he may recover. The court may equitably mitigate the damages. quasi-contracts and quasi-delicts.1832 B. that the defendant acted upon the advice of counsel.1833 2. Liquidated damages Shall be equitably reduced if they are iniquitous or unconscionable. as in the following instances: (1) Plaintiff himself has contravened the terms of the contract. Rules 1.1834 3.IX.

Compromise The courts may mitigate the damages to be paid by the losing party who has shown a sincere desire for a compromise. 5. Actual and Liquidated Liquidated damages are those agreed upon by the parties to a contract. 2012. 2226 1840 supra 1841 Ibid. or their respective heirs and assigns. 1837 Art. Miscellaneous Rules A. 426 . 2223 1839 Art. Damages that cannot co-exists 1. Damages that must co-exist 1.1839 B.1837 X. liquidated or compensatory1840 C. temperate.1838 2. as between the parties to the suit. Damages that must stand alone 1. 2031 1838 Art. Exemplary with moral. Nominal Damages1841 Include: Pertinent Supreme Court decisions promulgated up to January 31. to be paid in case of breach thereof. Nominal with other damages The adjudication of nominal damages shall preclude further contest upon the right involved and all accessory questions.

(2) Freedom of speech. who directly or indirectly obstructs. When the accused in a criminal prosecution is acquitted on the ground that his guilt has not been proved beyond reasonable doubt. physical defect. deceit. good customs or public policy shall compensate the latter for the damage. and no criminal proceedings are instituted during the pendency of the civil case. 32. Every person shall respect the dignity. Any public officer or employee. though they may not constitute a criminal offense. In the absence of any declaration to that effect. Art. machination or any other unjust. the court shall so declare. 427 . (2) Meddling with or disturbing the private life or family relations of another. personality. When a separate civil action is brought to demand civil liability arising from a criminal offense. it may be inferred from the text of the decision whether or not the acquittal is due to that ground. privacy and peace of mind of his neighbors and other persons. Such action requires only a preponderance of evidence. Article 28. Article 27. prevention and other relief: (1) Prying into the privacy of another's residence. (3) Intriguing to cause another to be alienated from his friends. a preponderance of evidence shall likewise be sufficient to prove the act complained of. a civil action for damages for the same act or omission may be instituted. the court may require the plaintiff to file a bond to answer for damages in case the complaint should be found to be malicious. to perform his official duty may file an action for damages and other relief against the latter. or any private individual. If in a criminal case the judgment of acquittal is based upon reasonable doubt. without just cause. commercial or industrial enterprises or in labor through the use of force. Article 29. Upon motion of the defendant. Article 26. Unfair competition in agricultural. or other personal condition. Any person suffering material or moral loss because a public servant or employee refuses or neglects. Any person who wilfully causes loss or injury to another in manner that is contrary to morals. defeats. 30. The following and similar acts. Art. REFERENCE Civil Code Article 21. without prejudice to any disciplinary administrative action that may be taken. oppressive or highhanded method shall give rise to a right of action by the person who thereby suffers damage. place of birth. violates or in any manner impedes or impairs any of the following rights and liberties of another person shall be liable to the latter for damages: (1) Freedom of religion. (4) Vexing or humiliating another on account of his religious beliefs. intimidation. lowly station in life. shall produce a cause of action for damages.

except when the person confessing becomes a State witness. and mat be proved by a preponderance of evidence. (18) Freedom from excessive fines. papers. (10) The liberty of abode and of changing the same. (13) The right to take part in a peaceable assembly to petition the government for redress of grievances. (15) The right of the accused against excessive bail. the aggrieved party has a right to commence an entirely separate and distinct civil action for damages. (12) The right to become a member of associations or societies for purposes not contrary to law. (14) The right to be free from involuntary servitude in any form. and (19) Freedom of access to the courts. to meet the witnesses face to face. to have a speedy and public trial. In any of the cases referred to in this article. and to have compulsory process to secure the attendance of witness in his behalf. and for other relief. (7) The right to a just compensation when private property is taken for public use (8) The right to the equal protection of the laws. house. (6) The right against deprivation of property without due process of law. whether or not the defendant's act or omission constitutes a criminal offense. or from being induced by a promise of immunity or reward to make such confession. 428 . (16) The right of the accused to be heard by himself and counsel. (17) Freedom from being compelled to be a witness against one's self. unless the same is imposed or inflicted in accordance with a statute which has not been judicially declared unconstitutional. to be informed of the nature and cause of the accusation against him. or cruel and unusual punishment. and effects against unreasonable searches and seizures. or from being forced to confess guilt. (11) The privacy of communication and correspondence. (5) Freedom of suffrage. Such civil action shall proceed independently of any criminal prosecution (if the latter be instituted). (9) The right to be secure in one's person. (3) Freedom to write for the press or to maintain a periodical publication (4) Freedom from arbitrary or illegal detention.

when proper and two or more persons are obliged to give it. When a person. for which no independent civil action is granted in this Code or any special law. When a member of a city or municipal police force refuses or fails to render aid or protection to any person in case of danger to life or property. the complaint may bring a civil action for damages against the alleged offender. claiming to be injured by a criminal offense. 429 . 391. If during the pendency of the civil action. Upon the defendant's motion. (2) From the descendants of the nearest degree. and has been missing for four years. The claim for support. entirely separate and distinct from the criminal action. may be brought by the injured party. Article 35. fraud. The indemnity shall include moral damages. who has not been heard of for four years since the loss of the vessel or aeroplane. charges another with the same. Article 34. Exemplary damages may also be adjudicated. (4) From the brothers and sisters. (3) From the ascendants. Such civil action may be supported by a preponderance of evidence. Among descendants and ascendants the order in which they are called to the intestate succession of the person who has a right to claim support shall be observed Art. but the justice of the peace finds no reasonable grounds to believe that a crime has been committed. the civil action shall be suspended until the termination of the criminal proceedings. (2) A person in the armed forces who has taken part in war. and shall require only a preponderance of evidence. The following shall be presumed dead for all purposes. shall be made in the following order: (1) From the spouse. and physical injuries a civil action for damages. or an aeroplane which is missing. Such civil action shall proceed independently of the criminal prosecution. The responsibility herein set forth is not demandable from a judge unless his act or omission constitutes a violation of the Penal Code or other penal statute. also of the nearest degree. The civil action herein recognized shall be independent of any criminal proceedings. the court may require the plaintiff to file a bond to indemnify the defendant in case the complaint should be found to be malicious. or the prosecuting attorney refuses or fails to institute criminal proceedings. an information should be presented by the prosecuting attorney. such peace officer shall be primarily liable for damages. Article 294. including the division of the estate among the heirs: (1) A person on board a vessel lost during a sea voyage. In cases of defamation. and a preponderance of evidence shall suffice to support such action. and the city or municipality shall be subsidiarily responsible therefor. Article 33.

do not affect possession Article 546. The owner. balconies. If the possessor of a movable lost or which the owner has been unlawfully deprived. The nonobservance of these distances does not give rise to prescription 430 . Necessary expenses shall be refunded to every possessor. is entitled to demand a right of way through the neighboring estates. Article 649. or by violence. after payment of the proper indemnity. This easement is not compulsory if the isolation of the immovable is due to the proprietor's own acts. or any person who by virtue of a real right may cultivate or use any immovable. In case the right of way is limited to the necessary passage for the cultivation of the estate surrounded by others and for the gathering of its crops through the servient estate without a permanent way. or other similar projections which afford a direct view upon or towards an adjoining land or tenement can be made. without leaving a distance of two meters between the wall in which they are made and such contiguous property. the owner cannot obtain its return without reimbursing the price paid therefor. Article 443. the indemnity shall consist of the value of the land occupied and the amount of the damage caused to the servient estate. gathering. Article 670. Neither can side or oblique views upon or towards such conterminous property be had. which is surrounded by other immovables pertaining to other persons and without adequate outlet to a public highway. Acts merely tolerated. and preservation Article 537. The possession of movable property acquired in good faith is equivalent to a title. but only the possessor in good faith may retain the thing until he has been reimbursed therefor. has acquired it in good faith at a public sale. Useful expenses shall be refunded only to the possessor in good faith with the same right of retention. unless there be a distance of sixty centimeters. Should this easement be established in such a manner that its use may be continuous for all the needs of the dominant estate. apertures. the indemnity shall consist in the payment of the damage caused by such encumbrance. the person who has defeated him in the possession having the option of refunding the amount of the expenses or of paying the increase in value which the thing may have acquired by reason thereof Article 559. Nevertheless. (3) A person who has been in danger of death under other circumstances and his existence has not been known for four years. one who has lost any movable or has been unlawfully deprived thereof. No windows. and those executed clandestinely and without the knowledge of the possessor of a thing. may recover it from the person in possession of the same. establishing a permanent passage. He who receives the fruits has the obligation to pay the expenses made by a third person in their production.

(3) If the devise or legacy consists of a usufruct or life annuity. legitimate or legitimated by subsequent marriage. and in a contrary case. should turn out to be living. Article 919. after the donation. Every owner of a tenement or piece of land may establish thereon the easements which he may deem suitable. The donation may comprehend all the present property of the donor. (820a) Article 912. provided he does not contravene the laws. legitimate as well as illegitimate: 431 . or illegitimate. the compulsory heirs may choose between complying with the testamentary provision and delivering to the devisee or legatee the part of the inheritance of which the testator could freely dispose. 688. (2) If the child of the donor. in full ownership or in usufruct. and in the manner and form which he may deem best. and of all relatives who. at the time of the acceptance of the donation. if necessary. it shall not suffer any reduction until the latter have been applied in full to the payment of the legitime. are by law entitled to be supported by the donor. it shall go to the devisee if the reduction does not absorb one-half of its value. If the testator has directed that a certain devise or legacy be paid in preference to others. Every donation inter vivos. If the devise subject to reduction should consist of real property. made by a person having no children or descendants. may be revoked or reduced as provided in the next article. but the former and the latter shall reimburse each other in cash for what respectively belongs to them. without any distinction whatever. reducing or annulling. the devises or legacies made in the will. provided he reserves. even though they be posthumous. the reduction shall be made as follows: (1) Donations shall be respected as long as the legitime can be covered. sufficient means for the support of himself. (3) If the donor subsequently adopt a minor child. provided its value does not exceed that of the disposable portion and of the share pertaining to him as legitime. Article 750. or part thereof. The devisee who is entitled to a legitime may retain the entire property. whose value may be considered greater than that of the disposable portion. to the compulsory heirs. The following shall be sufficient causes for the disinheritance of children and descendants. by the happening of any of these events: (1) If the donor. After the legitime has been determined in accordance with the three preceding articles. Art. should have legitimate or legitimated or illegitimate children. Article 911. Without such reservation. whom the latter believed to be dead when he made the donation. public policy or public order. (2) The reduction of the devises or legacies shall be pro rata. which cannot be conveniently divided. the donation shall be reduced in petition of any person affected Article 760.

or from a merchant's store the provisions of articles 559 and 1505 of this Code shall be observed. according to articles 1132. The designation of the persons who are to be considered as poor and the distribution of the property shall be made by the person appointed by the testator for the purpose. who shall decide by a majority of votes all questions that may arise. his or her spouse. descendants. and the municipal treasurer. (1) When a child or descendant has been found guilty of an attempt against the life of the testator. 1030. (7) When a child or descendant leads a dishonorable or disgraceful life. unless the possessor has acquired the ownership by prescription for a less period. Art. and should there be no executor. Movables possessed through a crime can never be acquired through prescription by the offender. 1505. as well as with respect to movables acquired in a public sale. The ownership of movables prescribes through uninterrupted possession for four years in good faith. fair. by the justice of the peace. With regard to the right of the owner to recover personal property lost or of which he has been illegally deprived. without designation of particular persons or of any community. or ascendants. by the child or descendant. In all these cases. intimidation. (4) When a child or descendant by fraud. violence. if the accusation has been found groundless. (6) Maltreatment of the testator by word or deed. without need of any other condition. Actions to recover movables shall prescribe eight years from the time the possession thereof is lost. unless it should clearly appear that his intention was otherwise. (8) Conviction of a crime which carries with it the penalty of civil interdiction. 432 . and without prejudice to the provisions of articles 559. the approval of the Court of First Instance shall be necessary. The ownership of personal property also prescribes through uninterrupted possession for eight years. The preceding paragraph shall apply when the testator has disposed of his property in favor of the poor of a definite locality Article 1132. by the executor. in default of such person. Article 1140. the mayor. (3) When a child or descendant has been convicted of adultery or concubinage with the spouse of the testator. (5) A refusal without justifiable cause to support the parent or ascendant who disinherits such child or descendant. and 1133. or undue influence causes the testator to make a will or to change one already made. (2) When a child or descendant has accused the testator of a crime for which the law prescribes imprisonment for six years or more. Testamentary provisions in favor of the poor in general. Article 1133. or market. shall be deemed limited to the poor living in the domicile of the testator at the time of his death.

The creditor has a right to the fruits of the thing from the time the obligation to deliver it arises. in addition to the right granted him by Article 1170. (2) Upon a quasi-contract. Article 1141. 1165. (As amended by PD No. However. (1094a) Art. (2) Upon an obligation created by law. The following actions must be instituted within four years: (1) Upon an injury to the rights of the plaintiff. or conduct of any public officer involving the exercise of powers or authority arising from Martial Law including the arrest. (2) Upon a quasi-delict. Every person obliged to give something is also obliged to take care of it with the proper diligence of a good father of a family. 1755. detention and/or trial of the plaintiff. unless the law or the stipulation of the parties requires another standard of care. The following actions must be filed within one year: (1) For forcible entry and detainer. This provision is without prejudice to what is established for the acquisition of ownership and other real rights by prescription. A mortgage action prescribes after ten years Article 1144. activity.) Article 1147. When what is to be delivered is a determinate thing. Real actions over immovables prescribe after thirty years. 1164. may compel the debtor to make the delivery. or has promised to deliver the same thing to two or more persons who do not have the same interest. Dec. (1095) Art. Article 1145. If the thing is indeterminate or generic. Art. The following actions must be commenced within six years: (1) Upon an oral contract. the same must be brought within one (1) year. (3) Upon a judgment. Article 1146. he may ask that the obligation be complied with at the expense of the debtor. 24. the creditor. 1980. The following actions must be brought within ten years from the time the right of action accrues: (1) Upon a written contract. Article 1142. (2) For defamation. he shall be responsible for any fortuitous event until he has effected the delivery 433 . when the action arises from or out of any act. If the obligor delays. 1163. However. he shall acquire no real right over it until the same has been delivered to him.

are liable for damages Art. if the latter should become impossible. Unless there is an express stipulation to that effect. (2) Insane or demented persons. and deaf-mutes who do not know how to write Article 1385. unless there be just cause authorizing the fixing of a period. Art. Those who in the performance of their obligations are guilty of fraud. it should be impossible for him to return them. Rescission creates the obligation to return the things which were the object of the contract. even after he has chosen fulfillment. The injured party may choose between the fulfillment and the rescission of the obligation. and before he has incurred in delay. whenever. In this case. with the payment of damages in either case. the creditor cannot be compelled partially to receive the prestations in which the obligation consists. The following cannot give consent to a contract: (1) Unemancipated minors. negligence. Neither may the debtor be required to make partial payments. indemnity for damages may be demanded from the person causing the loss. A debt shall not be understood to have been paid unless the thing or service in which the obligation consists has been completely delivered or rendered. the creditor may demand and the debtor may effect the payment of the former without waiting for the liquidation of the latter. The court shall decree the rescission claimed. together with their fruits. 1327. The same rule applies when the nature of the obligation requires the assumption of risk. Article 1233. An obligation which consists in the delivery of a determinate thing shall be extinguished if it should be lost or destroyed without the fault of the debtor. the loss of the thing does not extinguish the obligation. Whoever acquires in bad faith the things alienated in fraud of creditors. 1262. in case one of the obligors should not comply with what is incumbent upon him. He may also seek rescission. and those who in any manner contravene the tenor thereof. Article 1170. and he shall be responsible for damages. When by law or stipulation. due to any cause. Article 1388. and the price with its interest. as the case may be. The power to rescind obligations is implied in reciprocal ones. This is understood to be without prejudice to the rights of third persons who have acquired the thing. 434 . when the debt is in part liquidated and in part unliquidated. the obligor is liable even for fortuitous events. Neither shall rescission take place when the things which are the object of the contract are legally in the possession of third persons who did not act in bad faith. However. it can be carried out only when he who demands rescission can return whatever he may be obliged to restore. shall indemnify the latter for damages suffered by them on account of the alienation. (1 Article 1248. in accordance with Articles 1385 and 1388 and the Mortgage Law. Art. 1191. or delay. consequently.

in any manner whatsoever. judges. the property and rights in litigation or levied upon an execution before the court within whose jurisdiction or territory they exercise their respective functions. Art. (6) Any others specially disqualified by law. the property of the State or of any subdivision thereof. with the vendor's consent. even at a public or judicial auction. either in person or through the mediation of another: (1) The guardian. 1490. the administration of which has been intrusted to them. (4) Public officers and employees. the execution thereof shall be equivalent to the delivery of the thing which is the object of the contract. the property whose administration or sale may have been entrusted to them. the provisions of the first paragraph of article 1498 shall govern. and other officers and employees connected with the administration of justice. When the sale is made through a public instrument. this prohibition includes the act of acquiring by assignment and shall apply to lawyers. its delivery may also be made by the delivery of the keys of the place or depository where it is stored or kept. The delivery of movable property may likewise be made by the mere consent or agreement of the contracting parties. (1464) 435 . or institution. take part in the sale. (5) Justices. with respect to the property and rights which may be the object of any litigation in which they may take part by virtue of their profession. the placing of the titles of ownership in the possession of the vendee or the use by the vendee of his rights. There may also be tradition constitutum possessorium. the property of the person or persons who may be under his guardianship. this provision shall apply to judges and government experts who. (1462a) Art. the property of the estate under administration. 1497. clerks of superior and inferior courts. or of any government-owned or controlled corporation. 1500. if from the deed the contrary does not appear or cannot clearly be inferred. or if the latter already had it in his possession for any other reason. 1491. 1499. 1501. if the thing sold cannot be transferred to the possession of the vendee at the time of the sale. unless the consent of the principal has been given. Art. or (2) When there has been a judicial separation or property under Article 191. The thing sold shall be understood as delivered. 1498. (3) Executors and administrators. With regard to movable property. With respect to incorporeal property. Art. except: (1) When a separation of property was agreed upon in the marriage settlements. (2) Agents. Art. shall be understood as a delivery. when it is placed in the control and possession of the vendee. Art. (1458a) Art. The husband and the wife cannot sell property to each other. The following persons cannot acquire by purchase. In any other case wherein said provisions are not applicable. prosecuting attorneys.

Article 1505. however. in addition to his other remedies a right of withholding delivery similar to and coextensive with his rights of lien and stoppage in transitu where the ownership has passed to the buyer. 436 . The rescission. but. or any other provision of law enabling the apparent owner of goods to dispose of them as if he were the true owner thereof. recording laws. even when the area is the same. in accordance with the Code of Commerce and special laws Art. provided that. (4) A right to rescind the sale as likewise limited by this Title. in conformity with the following rules: If the sale of real estate should be made with a statement of its area. the buyer acquires no better title to the goods than the seller had. notwithstanding that the ownership in the goods may have passed to the buyer. (2) In case of the insolvency of the buyer. 1526. the lack in the area be not less than one-tenth of that stated. at the rate of a certain price for a unit of measure or number. shall affect: (1) The provisions of any factors' act. and who does not sell them under authority or with the consent of the owner. if any part of the immovable is not of the quality specified in the contract. Nothing in this Title. unless the owner of the goods is by his conduct precluded from denying the seller's authority to sell. he may rescind the sale. Subject to the provisions of this Title. 1539. where goods are sold by a person who is not the owner thereof. or markets. in this case. should this be not possible. all that may have been stated in the contract. when the inferior value of the thing sold exceeds one-tenth of the price agreed upon. (3) Purchases made in a merchant's store. shall only take place at the will of the vendee. Where the ownership in the goods has not passed to the buyer. The obligation to deliver the thing sold includes that of placing in the control of the vendee all that is mentioned in the contract. has: (1) A lien on the goods or right to retain them for the price while he is in possession of them. the vendee may choose between a proportional reduction of the price and the rescission of the contract. Nevertheless. the vendor shall be obliged to deliver to the vendee. if the vendee would not have bought the immovable had he known of its smaller area of inferior quality. the unpaid seller of goods. or in fairs. a right of stopping the goods in transitu after he has parted with the possession of them. Subject to the provisions of this Title. as such. (3) A right of resale as limited by this Title. in the latter case. if the latter should demand it. (2) The validity of any contract of sale under statutory power of sale or under the order of a court of competent jurisdiction. The same shall be done. the unpaid seller has. Art.

in the absence of agreement or usage of trade permitting such examination. on request. he shall suffer a reduction in the price. Where goods are delivered to the buyer. The profit the seller would have made if the contract or the sale had been fully performed shall be considered in awarding the damages. Article 1608. although there be a greater or less area or number than that stated in the contract. the buyer repudiates the contract or notifies the seller to proceed no further therewith. and. unless the contract is rescinded because the vendee does not accede to the failure to deliver what has been stipulated. Where goods are delivered to a carrier by the seller. he is not deemed to have accepted them unless and until he has had a reasonable opportunity of examining them for the purpose of ascertaining whether they are in conformity with the contract if there is no stipulation to the contrary. in proportion to what is lacking in the area or number. in the absence of special circumstances showing proximate damage of a different amount. even when it exceeds the area or number specified in the contract. or. he is bound. when the seller tenders delivery of goods to the buyer. there shall be no increase or decrease of the price. Where the buyer wrongfully neglects or refuses to accept and pay for the goods. the measure of damages is. Art. in accordance with an order from or agreement with the buyer." or otherwise. while labor or expense of material amount is necessary on the part of the seller to enable him to fulfill his obligations under the contract of sale. Where there is an available market for the goods in question. Art. Unless otherwise agreed. If. if no time was fixed for acceptance. the seller may maintain an action against him for damages for non-acceptance. besides mentioning the boundaries. Art. 1584. which is indispensable in every conveyance of real estate. but if. the difference between the contract price and the market or current price at the time or times when the goods ought to have been accepted. to afford the buyer a reasonable opportunity of examining the goods for the purpose of ascertaining whether they are in conformity with the contract. made for a lump sum and not at the rate of a certain sum for a unit of measure or number. The measure of damages is the estimated loss directly and naturally resulting in the ordinary course of events from the buyer's breach of contract. The same rule shall be applied when two or more immovables as sold for a single price. In the sale of real estate. 1596. without prejudice to the provisions of the Mortgage Law and the Land Registration Law with respect to third persons 437 . the vendor shall be bound to deliver all that is included within said boundaries. should he not be able to do so. 1542. its area or number should be designated in the contract. the buyer is not entitled to examine the goods before the payment of the price. then at the time of the refusal to accept. upon the terms that the goods shall not be delivered by the carrier to the buyer until he has paid the price. which he has not previously examined. The vendor may bring his action against every possessor whose right is derived from the vendee. even if in the second contract no mention should have been made of the right to repurchase. whether such terms are indicated by marking the goods with the words "collect on delivery. the buyer shall be liable to the seller for labor performed or expenses made before receiving notice of the buyer's repudiation or countermand.

the following shall not prejudice the laborers. The agent may appoint a substitute if the principal has not prohibited him from doing so. and the person appointed was notoriously incompetent or insolvent. Those who put their labor upon or furnish materials for a piece of work undertaken by the contractor have an action against the owner up to the amount owing from the latter to the contractor at the time the claim is made. However. within the same period. in accordance with the terms of the sublease. but he shall be responsible for the acts of the substitute: (1) When he was not given the power to appoint one. he shall be solidarily liable with the contractor. 1 and 2 of the preceding article. on account of defects in the construction or the use of materials of inferior quality furnished by him. (2) When he was given such power. The action must be brought within ten years following the collapse of the building Article 1729. employees and furnishers of materials: (1) Payments made by the owner to the contractor before they are due. so far as the lessor's claim is concerned. after completion. Article 1723. (2) Renunciation by the contractor of any amount due him from the owner. the sublessee shall not be responsible beyond the amount of rent due from him. but without designating the person. or due to any violation of the terms of the contract. If the engineer or architect supervises the construction. This article is subject to the provisions of special laws Article 1731. The engineer or architect who drew up the plans and specifications for a building is liable for damages if within fifteen years from the completion of the structure. He who has executed work upon a movable has a right to retain it by way of pledge until he is paid. Article 1652. However. at the time of the extra-judicial demand by the lessor. the principal may furthermore bring an action against the substitute with respect to the obligations which the latter has contracted under the substitution. Acceptance of the building. (1721) Article 1893. The sublessee is subsidiarily liable to the lessor for any rent due from the lessee. The contractor is likewise responsible for the damages if the edifice falls. does not imply waiver of any of the cause of action by reason of any defect mentioned in the preceding paragraph. unless said payments were effected in virtue of the custom of the place. In the cases mentioned in Nos. Article 1892. Payments of rent in advance by the sublessee shall be deemed not to have been made. the same should collapse by reason of a defect in those plans and specifications. 438 . All acts of the substitute appointed against the prohibition of the principal shall be void. or due to the defects in the ground.

attach a certificate issued by a priest. In the cases where parental consent or parental advice is needed. 15. or if it be unfavorable. In crimes and quasi-delicts. (7) In actions for the recovery of wages of household helpers. (9) In a separate civil action to recover civil liability arising from a crime. (62a) Art. the party or parties concerned shall. just and demandable claim. 16. if any. 2202. shall be attached to the application for marriage license. The depositary may retain the thing in pledge until the full payment of what may be due him by reason of the deposit Art. It is not necessary that such damages have been foreseen or could have reasonably been foreseen by the defendant. A sworn statement by the contracting parties to the effect that such advice has been sought. (5) Where the defendant acted in gross and evident bad faith in refusing to satisfy the plaintiff's plainly valid. imam or minister authorized to solemnize marriage under Article 7 of this Code or a marriage counselor duly accredited by the proper government agency to the effect that the 439 . If they do not obtain such advice. except: (1) When exemplary damages are awarded. together with the written advice given. cannot be recovered. (10) When at least double judicial costs are awarded. In all cases. this fact shall be stated in the sworn statement. (11) In any other case where the court deems it just and equitable that attorney's fees and expenses of litigation should be recovered. Article 1994. in addition to the requirements of the preceding articles. In the absence of stipulation. the defendant shall be liable for all damages which are the natural and probable consequences of the act or omission complained of. attorney's fees and expenses of litigation. (3) In criminal cases of malicious prosecution against the plaintiff. Any contracting party between the age of twenty-one and twenty-five shall be obliged to ask their parents or guardian for advice upon the intended marriage. (6) In actions for legal support. the marriage license shall not be issued till after three months following the completion of the publication of the application therefor. other than judicial costs. (2) When the defendant's act or omission has compelled the plaintiff to litigate with third persons or to incur expenses to protect his interest. Should the parents or guardian refuse to give any advice. 2208. laborers and skilled workers. (8) In actions for indemnity under workmen's compensation and employer's liability laws. (4) In case of a clearly unfounded civil action or proceeding against the plaintiff. Family Code Art. Art. the attorney's fees and expenses of litigation must be reasonable.

Art. Marriages Exempted from License Requirement Art. provided they are solemnized in accordance with their customs. 33. together with the legible copy of the marriage contract. who is a commissioned officer. 440 . specifying the barrio or barangay.contracting parties have undergone marriage counseling. Art. the other party must be present at the counseling referred to in the preceding paragraph. shall likewise have authority to solemnize marriages in articulo mortis between persons within the zone of military operation. Art. Art. Art. 34. Issuance of the marriage license within the prohibited period shall subject the issuing officer to administrative sanctions but shall not affect the validity of the marriage. 28. 30. In case either or both of the contracting parties are at the point of death. Art. shall be sent by the person solemnizing the marriage to the local civil registrar of the municipality where it was performed within the period of thirty days after the performance of the marriage. whether members of the armed forces or civilians. A military commander of a unit. but also during stopovers at ports of call. The solemnizing officer shall also state under oath that he ascertained the qualifications of the contracting parties are found no legal impediment to the marriage. (n) Chapter 2. The original of the affidavit required in the last preceding article. Marriages among Muslims or among members of the ethnic cultural communities may be performed validly without the necessity of marriage license. 32. Should only one of the contracting parties need parental consent or parental advice. The contracting parties shall state the foregoing facts in an affidavit before any person authorized by law to administer oaths. In the cases provided for in the two preceding articles. the marriage may be solemnized without necessity of a marriage license. 31. 27. is so located that there is no means of transportation to enable such party to appear personally before the local civil registrar and that the officer took the necessary steps to ascertain the ages and relationship of the contracting parties and the absence of legal impediment to the marriage. If the residence of either party is so located that there is no means of transportation to enable such party to appear personally before the local civil registrar. 29. Art. A marriage in articulo mortis between passengers or crew members may also be solemnized by a ship captain or by an airplane pilot not only while the ship is at sea or the plane is in flight. No license shall be necessary for the marriage of a man and a woman who have lived together as husband and wife for at least five years and without any legal impediment to marry each other. the solemnizing officer shall state in an affidavit executed before the local civil registrar or any other person legally authorized to administer oaths that the marriage was performed in articulo mortis or that the residence of either party. rites or practices. Failure to attach said certificates of marriage counseling shall suspend the issuance of the marriage license for a period of three months from the completion of the publication of the application. the marriage may be solemnized without necessity of a marriage license and shall remain valid even if the ailing party subsequently survives.

(6) Unless otherwise agreed upon by the parties. Art. but the value of the properties already received under the decree of annulment or absolute nullity shall be considered as advances on their legitime. the value of the presumptive legitimes of all common children. the following procedure shall apply: (1) An inventory shall be prepared. Art. the said profits shall be the increase in value between the market value of the community property at the time of the celebration of the marriage and the market value at the time of its dissolution. 441 . No. 102. In case of insufficiency of said assets. signed by the parties and executed before the celebration of the marriage. Upon dissolution of the absolute community regime. Art. 77. the conjugal dwelling and the lot on which it is situated shall be adjudicated to the spouse with whom the majority of the common children choose to remain. shall be delivered in cash. In case there in no such majority. For purpose of computing the net profits subject to forfeiture in accordance with Articles 43. computed as of the date of the final judgment of the trial court. which shall be divided equally between husband and wife. The children or their guardian or the trustee of their property may ask for the enforcement of the judgment. (4) The net remainder of the properties of the absolute community shall constitute its net assets. in the partition of the properties. In said partition. listing separately all the properties of the absolute community and the exclusive properties of each spouse. or unless there has been a voluntary waiver of such share provided in this Code. by mutual agreement judicially approved. They shall not prejudice third persons unless they are registered in the local civil registry where the marriage contract is recorded as well as in the proper registries of properties. property or sound securities. 51. had already provided for such matters. in accordance with Article 51. The delivery of the presumptive legitimes herein prescribed shall in no way prejudice the ultimate successional rights of the children accruing upon the death of either of both of the parents. the court shall decide. (2). (3) Whatever remains of the exclusive properties of the spouses shall thereafter be delivered to each of them. taking into consideration the best interests of said children. the spouses shall be solidarily liable for the unpaid balance with their separate properties in accordance with the provisions of the second paragraph of Article 94. unless the parties. No. (2) The debts and obligations of the absolute community shall be paid out of its assets. The marriage settlements and any modification thereof shall be in writing. unless the court has decided otherwise. Children below the age of seven years are deemed to have chosen the mother. (2) and 63. (5) The presumptive legitimes of the common children shall be delivered upon partition. unless a different proportion or division was agreed upon in the marriage settlements.

(8) The presumptive legitimes of the common children shall be delivered upon the partition in accordance with Article 51. unless otherwise agreed upon by the parties. the ownership of which has been vested by law in the conjugal partnership. Upon the dissolution of the conjugal partnership regime. listing separately all the properties of the conjugal partnership and the exclusive properties of each spouse. (5) Whatever remains of the exclusive properties of the spouses shall thereafter be delivered to each of them. (4) The debts and obligations of the conjugal partnership shall be paid out of the conjugal assets. The obligations to the family mentioned in the preceding paragraph refer to marital. for judicial separation of property. or for authority to be the sole administrator of the conjugal partnership property. (3) Each spouse shall be reimbursed for the use of his or her exclusive funds in the acquisition of property or for the value of his or her exclusive property. belonging to either spouse. the following procedure shall apply: (1) An inventory shall be prepared. parental or property relations. which shall be divided equally between husband and wife. (9) In the partition of the properties. Art. A spouse is deemed to have abandoned the other when he or she has left the conjugal dwelling without intention of returning. if any. subject to such precautionary conditions as the court may impose. the conjugal dwelling and the lot on which it is situated shall. shall be paid to said spouse from the conjugal funds. even due to fortuitous event. unless a different proportion or division was agreed upon in the marriage settlements or unless there has been a voluntary waiver or forfeiture of such share as provided in this Code. the spouses shall be solidarily liable for the unpaid balance with their separate properties. the loss or deterioration of movables used for the benefit of the family. Children below the age of seven years are 442 . be adjudicated to the spouse with whom the majority of the common children choose to remain. the aggrieved spouse may petition the court for receivership. If a spouse without just cause abandons the other or fails to comply with his or her obligation to the family. (7) The net remainder of the conjugal partnership properties shall constitute the profits. The spouse who has left the conjugal dwelling for a period of three months or has failed within the same period to give any information as to his or her whereabouts shall be prima facie presumed to have no intention of returning to the conjugal dwelling Art. 128. In case of insufficiency of said assets. (6) Unless the owner had been indemnified from whatever source. 129. in accordance with the provisions of paragraph (2) of Article 121. (2) Amounts advanced by the conjugal partnership in payment of personal debts and obligations of either spouse shall be credited to the conjugal partnership as an asset thereof.

In the cases provided for in Numbers (1). (4) That the spouse of the petitioner has abandoned the latter or failed to comply with his or her obligations to the family as provided for in Article 101. taking into consideration the best interests of said children. the presentation of the final judgment against the guilty or absent spouse shall be enough basis for the grant of the decree of judicial separation of property. After dissolution of the absolute community or of the conjugal partnership. Any of the following shall be considered sufficient cause for judicial separation of property: (1) That the spouse of the petitioner has been sentenced to a penalty which carries with it civil interdiction. Art. Once the separation of property has been decreed. Art.deemed to have chosen the mother. the separation of property between spouses during the marriage shall not take place except by judicial order. as well as the personal creditors of the spouse. 136. the provisions on complete separation of property shall apply. 138. Art. 137. (5) That the spouse granted the power of administration in the marriage settlements has abused that power. In case there is no such majority. the absolute community or the conjugal partnership shall pay for the support of the spouses and their children. 443 . During the pendency of the proceedings for separation of property. All creditors of the absolute community or of the conjugal partnership of gains. The court shall take measures to protect the creditors and other persons with pecuniary interest. the absolute community or the conjugal partnership of gains shall be liquidated in conformity with this Code. unless the court has decided otherwise. (192a) Art. Art. (2) That the spouse of the petitioner has been judicially declared an absentee. (2) and (3). and (6) That at the time of the petition. Such judicial separation of property may either be voluntary or for sufficient cause. 135. (3) That loss of parental authority of the spouse of petitioner has been decreed by the court. In the absence of an express declaration in the marriage settlements. and for the separation of their common properties. The spouses may jointly file a verified petition with the court for the voluntary dissolution of the absolute community or the conjugal partnership of gains. shall be listed in the petition and notified of the filing thereof. the court shall decide. the spouses have been separated in fact for at least one year and reconciliation is highly improbable. 134.

Property exempt from execution. teachers. Art. the property not agreed upon as separate shall pertain to the conjugal partnership of gains. (c) Three horses. and (4) For debts due to laborers. physicians. or other beasts of burden. (2) For debts incurred prior to the constitution of the family home. (3) For debts secured by mortgages on the premises before or after such constitution. not exceeding three hundred thousand pesos in value. (e) Household furniture and utensils necessary for housekeeping. architects. of a value not exceeding one hundred thousand pesos. (j) Lettered gravestones. engineers. forced sale or attachment except: (1) For nonpayment of taxes. The right to receive support under this Title as well as any money or property obtained as such support shall not be levied upon on attachment or execution Article 213. 155. shall be exempt from execution: (a) The judgment obligor's family home as provided by law. or three carabaos. 444 . (h) One fishing boat and accessories not exceeding the total value of one hundred thousand pesos owned by a fisherman and by the lawful use of which he earns his livelihood. Separation of property may refer to present or future property or both. (f) Provisions for individual or family use sufficient for four months. Art. materialmen and others who have rendered service or furnished material for the construction of the building. dentists. such as the judgment obligor may select necessarily used by him in his ordinary occupation. clergymen. excluding jewelry. It may be total or partial. (i) So much of the salaries. (b) Ordinary tools and implements personally used by him in his trade. such as the judgment obligor may select. or livelihood. lawyers. — Except as otherwise expressly provided by law. (d) His necessary clothing and articles for ordinary personal use. and land necessarily used in connection therewith. surveyors. or three cows. or earnings of the judgment obligor for his personal services within the four months preceding the levy as are necessary for the support of his family. or the homestead in which he resides. wages. and other professionals. The family home shall be exempt from execution. builders. In the latter case. the following property. 205. Rules of Court RULE 39 Section 13. (g) The professional libraries and equipment of judges. employment. mechanics. and no other. and used for that purpose by the judgment obligor and his family. pharmacists.

Sec. . But no article or species of property mentioned in this section shall be exempt from execution issued upon a judgment recovered for its price or upon a judgment of foreclosure of a mortgage thereon. and (o) changes of name.Upon good and valid grounds. (j) naturalization (k) election. 445 .The court in which the proceeding is brought may make orders expediting the proceedings. the following entries in the civil register may be cancelled or corrected: (a) births. . Order. (m) Properties specially exempted by law. (i) acknowledgments of natural children. order or decree concerning the civil status of persons which has been recorded in the civil register. benefits. 1. (b) marriages. 3. . Who may file petition. may file a verified petition for the cancellation or correction of any entry relating thereto. or any pension or gratuity from the Government. by an order. and cause reasonable notice thereof to be given to the persons named in the petition. event. . (l) The right to receive legal support. (c) deaths. (k) Monies. 4. and may also grant preliminary injunction for the preservation of the rights of the parties pending such proceedings. Notice and publication. 2. 5. or from the last date of publication of such notice. (m) judicial determination of filiation. fix the time and place for the hearing of the same. (e) judgments of annulments of marriage. Sec. within fifteen (15) days from notice of the petition.Any person interested in any act. Sec. Entries subject to cancellation or correction. loss or recovery of citizenship (l) civil interdiction. privileges.After hearing. 7. with the Court of First Instance of the province where the corresponding civil registry is located.chanrobles virtua law library Sec. the court may either dismiss the petition or issue an order granting the cancellation or correction prayed for. In either case. file his opposition thereto. Expediting proceedings. . (f) judgments declaring marriages void from the beginning. Parties. a certified copy of the judgment shall be served upon the civil registrar concerned who shall annotate the same in his record. or annuities accruing or in any manner growing out of any life insurance. . Sec. the civil registrar and all persons who have or claim any interest which would be affected thereby shall be made parties to the proceeding. 6. or money or property obtained as such support. (d) legal separations. the court shall.The civil registrar and any person having or claiming any interest under the entry whose cancellation or correction is sought may. (n) voluntary emancipation of a minor. RULE 108 CANCELLATION OR CORRECTION OF ENTRIES IN THE CIVIL REGISTRY Sec. Sec. (h) adoptions. Opposition. (g) legitimations. . The court shall also cause the order to be published once a week for three (3) consecutive weeks in a newspaper of general circulation in the province.When cancellation or correction of an entry in the civil register is sought.Upon the filing of the petition.

Sec. (5) "Civil registrar general" refers to the administrator of the National Statistics Office which is the agency mandated to carry out and administer the provision of laws on civil registration. (4) "Civil register" refers to the various registry books and related certificates and documents kept in the archives of the local civil registry offices. REPUBLIC ACT NO. age. The two (2) local civil registrars concerned will then communicate to facilitate the processing of the petition. In case the petitioner has already migrated to another place in the country and it would not be practical for such party. (2) "Petitioner" refers to a natural person filing the petition and who has direct and personal interest in the correction of a clerical or typographical error in an entry or change of first name or nickname in the civil register. a verified petition with the local civil registry office of the city or municipality where the record being sought to be corrected or changed is kept. and can be corrected or changed only by reference to other existing record or records: Provided. 446 . the petition may be filed. — Any person having direct and personal interest in the correction of a clerical or typographical error in an entry and/or change of first name or nickname in the civil register may file. in terms of transportation expenses. the following terms shall mean: (1) "City or municipal civil registrar" refers to the head of the local civil registry office of the city or municipality. Philippine Consulates and of the Office of the Civil Register General. Sec. — As used in this Act. 2. Who may File the Petition and Where. Definitions of Terms. No entry in a civil register shall be changed or corrected without a judicial order. in person. copying. (6) "First name" refers to a name or nickname given to a person which may consist of one or more names in addition to the middle and last names. as the case may be. 3. (3) "Clerical or typographical error" refers to a mistake committed in the performance of clerical work in writing. in person. time and effort to appear in person before the local civil registrar keeping the documents to be corrected or changed. such as misspelled name or misspelled place of birth or the like. who is appointed as such by the city or municipal mayor in accordance with the provisions of existing laws. however. Authority to Correct Clerical or Typographical Error and Change of First Name or Nickname. with the local civil registrar of the place where the interested party is presently residing or domiciled. That no correction must involve the change of nationality. except for clerical or typographical errors and change of first name or nickname which can be corrected or changed by concerned city or municipal civil registrar or consul general in accordance with the provisions of this Act and its implementing rules and regulations. which is visible to the eyes or obvious to the understanding. 9048 [March 22. transcribing or typing an entry in the civil register that is harmless and innocuous. status or sex of the petitioner. 2001] Section 1.

the petitioner shall submit a certification from the appropriate law enforcement agencies that he has no pending case or no criminal record. Citizens of the Philippines who are presently residing or domiciled in foreign countries may file their petition. The petitioner shall state the particular erroneous entry or entries which are sought to be corrected and/or the change sought to be made. in person. 447 . Sec. All petitions for the correction of clerical or typographical errors and/or change of first names or nicknames may be availed of only once. The petition and its supporting papers shall be filed in three (3) copies to be distributed as follows: first copy to the concerned city or municipal civil registrar. Form and Contents of the Petition. The petitions filed with the city or municipal civil registrar or the consul general shall be processed in accordance with this Act and its implementing rules and regulations. The affidavit shall set forth facts necessary to establish the merits of the petition and shall show affirmatively that the petitioner is competent to testify to the matters stated. — The petition shall be in the form of an affidavit. Grounds for Change of First Name or Nickname. — The petition for change of first name or nickname may be allowed in any of the following cases: (1) The petitioner finds the first name or nickname to be ridiculous. the petition shall likewise be supported with the documents mentioned in the immediately preceding paragraph. second copy to the Office of the Civil Registrar General. The petition shall be supported with the following documents: (1) A certified true machine copy of the certificate or of the page or of the registry book containing the entry or entries sought to be corrected or changed. tainted with dishonor or extremely difficult to write or pronounce. subscribed and sworn to before any person authorized by law to administer oaths. or the consul general. 5. with the nearest Philippine Consulates. or the consul general may consider relevant and necessary for the approval of the petition. 4. In case of change of first name or nickname. the petition shall be published at least once a week for two (2) consecutive weeks in a newspaper of general circulation. Sec. or (3) The change will avoid confusion. Furthermore. and the third copy to the petitioner. and (3) other documents which the petitioner or the city or municipal civil registrar. (2) At least two (2) public or private documents showing the correct entry or entries upon which the correction or change shall be based. (2) The new first name or nickname has been habitually and continuously used by the petitioner and he has been publicly known by the first name or nickname in the community. In addition.

or a fine of not less than Ten thousand pesos (P10. upon conviction. The petitioner may seek reconsideration with the civil registrar general or file the appropriate petition with the proper court. Upon receipt of the notice thereof. Sec. 7. Duties of the City of Municipal Civil Registrar or the Consul General. within ten (10) working days from receipt of the decision granting a petition. Sec. If the civil registrar general fails to exercise his power to impugn the decision of the city or municipal registrar or of the consul general within the period prescribed herein.000. An indigent petitioner shall be exempt from the payment of the said fee.000. such decision shall become final and executory. at the discretion of the court. or both. — The city or municipal civil registrar or the consul general shall be authorized to collect reasonable fees as a condition for accepting the petition. Sec. rules and regulations.00). the petitioner may either appeal the decision to the civil registrar general or file the appropriate petition with the proper court. 6. the city or municipal civil registrar or the consul general shall notify the petitioner of such action. — The city or municipal civil registrar or the consul general to whom the petition is presented shall examine the petition and its supporting documents. exercise the power to impugn such decision by way of an objection based on the following grounds: (1) The error is not clerical or typographical. — A person who violates any of the provisions of this Act shall. 8. The civil registrar general shall immediately notify the city or municipal civil registrar or the consul general of the action taken on the decision. be penalized by imprisonment of not less than six (6) years but not more than twelve (12) years. 448 . 9. Payment of Fees. Where the petition is denied by the city or municipal civil registrar or the consul general. In addition. or (3) The basis used in changing the first name or nickname of a person does not fall under Section 4. Duties and Powers of the Civil Registrar General.00) but not more than One hundred thousand pesos (P100. — The civil registrar general shall. The city or municipal civil registrar or the consul general shall act on the petition and shall render a decision not later than five (5) working days after the completion of the posting and/or publication requirement. Sec. He shall post the petition in a conspicuous place provided for the purpose for ten (10) consecutive days after he finds the petition and its supporting documents sufficient in form and substance. he shall suffer the penalties provided under civil service laws. if the offender is a government official or employee. Penalty Clause. (2) The correction of an entry or entries in the civil register is substantial or controversial as it effects the civil status of a person. He shall transmit a copy of his decision together with the records of the proceedings to the Office of the Civil Registrar General within five (5) working days from the date of the decision.

449 .------------------------------------------------------------- Public Land Act Section 118." when proper. Conveyance and encumbrance made by persons belonging to the so-called "non-Christian tribes. shall not be valid unless duly approved by the Director of the Bureau of non-Christian tribes.