IMPORTANT PROVISIONS IN CIVIL LAW

Preliminary Chapter
Art. 2. Laws shall take eIIect aIter IiIteen days Iollowing the
completion oI their publication in the OIIicial Gazette, unless it is
otherwise provided. This Code shall take eIIect one year aIter such
publication. (1a)
Art. 3. Ignorance oI the law excuses no one Irom compliance
therewith. (2)
Art. 4. Laws shall have no retroactive eIIect, unless the contrary is
provided. (3)
Art. 5. Acts executed against the provisions oI mandatory or
prohibitory laws shall be void, except when the law itselI authorizes
their validity. (4a)
Art. 6. Rights may be waived, unless the waiver is contrary to law,
public order, public policy, morals, or good customs, or prejudicial to a
third person with a right recognized by law. (4a)
Art. 8. Judicial decisions applying or interpreting the laws or the
Constitution shall Iorm a part oI the legal system oI the Philippines. (n)
Art. 9. No judge or court shall decline to render judgment by reason oI
the silence, obscurity or insuIIiciency oI the laws. (6)
Art. 10. In case oI doubt in the interpretation or application oI laws, it
is presumed that the lawmaking body intended right and justice to
prevail. (n)
Art. 13. When the laws speak oI years, months, days or nights, it shall
be understood that years are oI three hundred sixty-Iive days each;
months, oI thirty days; days, oI twenty-Iour hours; and nights Irom
sunset to sunrise.
II months are designated by their name, they shall be computed by the
number oI days which they respectively have.
In computing a period, the Iirst day shall be excluded, and the last day
included. (7a)
Art. 14. Penal laws and those oI public security and saIety shall be
obligatory upon all who live or sojourn in the Philippine territory,
subject to the principles oI public international law and to treaty
stipulations. (8a)
Art. 15. Laws relating to Iamily rights and duties, or to the status,
condition and legal capacity oI persons are binding upon citizens oI the
Philippines, even though living abroad. (9a)
Art. 16. Real property as well as personal property is subject to the
law oI the country where it is stipulated.
However, intestate and testamentary successions, both with respect to
the order oI succession and to the amount oI successional rights and to
the intrinsic validity oI testamentary provisions, shall be regulated by
the national law oI the person whose succession is under consideration,
whatever may be the nature oI the property and regardless oI the
country wherein said property may be Iound. (10a)
Art. 17. The Iorms and solemnities oI contracts, wills, and other
public instruments shall be governed by the laws oI the country in
which they are executed.
Human Relation
Art. 19. Every person must, in the exercise oI his rights and in the
perIormance oI his duties, act with justice, give everyone his due, and
observe honesty and good Iaith.
Art. 20. Every person who, contrary to law, wilIully or negligently
causes damage to another, shall indemniIy the latter Ior the same.
Art. 21. Any person who wilIully causes loss or injury to another in a
manner that is contrary to morals, good customs or public policy shall
compensate the latter Ior the damage.
Art. 22. Every person who through an act oI perIormance by another,
or any other means, acquires or comes into possession oI something at
the expense oI the latter without just or legal ground, shall return the
same to him.
Art. 23. Even when an act or event causing damage to another's
property was not due to the Iault or negligence oI the deIendant, the
latter shall be liable Ior indemnity iI through the act or event he was
beneIited.
Art. 24. In all contractual, property or other relations, when one oI the
parties is at a disadvantage on account oI his moral dependence,
ignorance, indigence, mental weakness, tender age or other handicap,
the courts must be vigilant Ior his protection.
Art. 25. Thoughtless extravagance in expenses Ior pleasure or display
during a period oI acute public want or emergency may be stopped by
order oI the courts at the instance oI any government or private
charitable institution.
Art. 26. Every person shall respect the dignity, personality, privacy and
peace oI mind oI his neighbors and other persons. The Iollowing and
similar acts, though they may not constitute a criminal oIIense, shall
produce a cause oI action Ior damages, prevention and other relieI:
(1) Prying into the privacy oI another's residence:
(2) Meddling with or disturbing the private liIe or Iamily
relations oI another;
(3) Intriguing to cause another to be alienated Irom his
Iriends;
(4) Vexing or humiliating another on account oI his religious
belieIs, lowly station in liIe, place oI birth, physical deIect,
or other personal condition.
Art. 27. Any person suIIering material or moral loss because a public
servant or employee reIuses or neglects, without just cause, to perIorm
his oIIicial duty may Iile an action Ior damages and other relieI against
he latter, without prejudice to any disciplinary administrative action
that may be taken.
Art. 28. UnIair competition in agricultural, commercial or industrial
enterprises or in labor through the use oI Iorce, intimidation, deceit,
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machination or any other unjust, oppressive or highhanded method
shall give rise to a right oI action by the person who thereby suIIers
damage.
Art. 29. When the accused in a criminal prosecution is acquitted on the
ground that his guilt has not been proved beyond reasonable doubt, a
civil action Ior damages Ior the same act or omission may be
instituted. Such action requires only a preponderance oI evidence.
Upon motion oI the deIendant, the court may require the plaintiII to
Iile a bond to answer Ior damages in case the complaint should be
Iound to be malicious.
II in a criminal case the judgment oI acquittal is based upon reasonable
doubt, the court shall so declare. In the absence oI any declaration to
that eIIect, it may be inIerred Irom the text oI the decision whether or
not the acquittal is due to that ground.
Art. 30. When a separate civil action is brought to demand civil
liability arising Irom a criminal oIIense, and no criminal proceedings
are instituted during the pendency oI the civil case, a preponderance oI
evidence shall likewise be suIIicient to prove the act complained oI.
Art. 31. When the civil action is based on an obligation not arising
Irom the act or omission complained oI as a Ielony, such civil action
may proceed independently oI the criminal proceedings and regardless
oI the result oI the latter.
Art. 32. Any public oIIicer or employee, or any private individual, who
directly or indirectly obstructs, deIeats, violates or in any manner
impedes or impairs any oI the Iollowing rights and liberties oI another
person shall be liable to the latter Ior damages:
(1) Freedom oI religion;
(2) Freedom oI speech;
(3) Freedom to write Ior the press or to maintain a
periodical publication;
(4) Freedom Irom arbitrary or illegal detention;
(5) Freedom oI suIIrage;
(6) The right against deprivation oI property without due
process oI law;
(7) The right to a just compensation when private property
is taken Ior public use;
(8) The right to the equal protection oI the laws;
(9) The right to be secure in one's person, house, papers,
and eIIects against unreasonable searches and seizures;
(10) The liberty oI abode and oI changing the same;
(11) The privacy oI communication and correspondence;
(12) The right to become a member oI associations or
societies Ior purposes not contrary to law;
(13) The right to take part in a peaceable assembly to
petition the government Ior redress oI grievances;
(14) The right to be Iree Irom involuntary servitude in any
Iorm;
(15) The right oI the accused against excessive bail;
(16) The right oI the accused to be heard by himselI and
counsel, to be inIormed oI the nature and cause oI the
accusation against him, to have a speedy and public trial, to
meet the witnesses Iace to Iace, and to have compulsory
process to secure the attendance oI witness in his behalI;
(17) Freedom Irom being compelled to be a witness against
one's selI, or Irom being Iorced to conIess guilt, or Irom
being induced by a promise oI immunity or reward to make
such conIession, except when the person conIessing
becomes a State witness;
(18) Freedom Irom excessive Iines, or cruel and unusual
punishment, unless the same is imposed or inIlicted in
accordance with a statute which has not been judicially
declared unconstitutional; and
(19) Freedom oI access to the courts.
In any oI the cases reIerred to in this article, whether or not the
deIendant's act or omission constitutes a criminal oIIense, the
aggrieved party has a right to commence an entirely separate and
distinct civil action Ior damages, and Ior other relieI. Such civil action
shall proceed independently oI any criminal prosecution (iI the latter
be instituted), and mat be proved by a preponderance oI evidence.
The indemnity shall include moral damages. Exemplary damages may
also be adjudicated.
The responsibility herein set Iorth is not demandable Irom a judge
unless his act or omission constitutes a violation oI the Penal Code or
other penal statute.
Art. 33. In cases oI deIamation, Iraud, and physical injuries a civil
action Ior damages, entirely separate and distinct Irom the criminal
action, may be brought by the injured party. Such civil action shall
proceed independently oI the criminal prosecution, and shall require
only a preponderance oI evidence.
Art. 34. When a member oI a city or municipal police Iorce reIuses or
Iails to render aid or protection to any person in case oI danger to liIe
or property, such peace oIIicer shall be primarily liable Ior damages,
and the city or municipality shall be subsidiarily responsible thereIor.
The civil action herein recognized shall be independent oI any criminal
proceedings, and a preponderance oI evidence shall suIIice to support
such action.
Art. 35. When a person, claiming to be injured by a criminal oIIense,
charges another with the same, Ior which no independent civil action is
granted in this Code or any special law, but the justice oI the peace
Iinds no reasonable grounds to believe that a crime has been
committed, or the prosecuting attorney reIuses or Iails to institute
criminal proceedings, the complaint may bring a civil action Ior
damages against the alleged oIIender. Such civil action may be
supported by a preponderance oI evidence. Upon the deIendant's
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motion, the court may require the plaintiII to Iile a bond to indemniIy
the deIendant in case the complaint should be Iound to be malicious.
II during the pendency oI the civil action, an inIormation should be
presented by the prosecuting attorney, the civil action shall be
suspended until the termination oI the criminal proceedings.
Art. 36. Pre-judicial questions which must be decided beIore any
criminal prosecution may be instituted or may proceed, shall be
governed by rules oI court which the Supreme Court shall promulgate
and which shall not be in conIlict with the provisions oI this Code.
Birth
Art. 37. Juridical capacity, which is the Iitness to be the subject oI
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
eIIect, is acquired and may be lost. (n)
Art. 38. Minority, insanity or imbecility, the state oI being a deaI-mute,
prodigality and civil interdiction are mere restrictions on capacity to
act, and do not exempt the incapacitated person Irom certain
obligations, as when the latter arise Irom his acts or Irom property
relations, such as easements. (32a)
Natural Person

Art. 40. Birth determines personality; but the conceived child shall be
considered born Ior all purposes that are Iavorable to it, provided it be
born later with the conditions speciIied in the Iollowing article. (29a)
Art. 41. For civil purposes, the Ietus is considered born iI it is alive at
the time it is completely delivered Irom the mother's womb. However,
iI the Ietus had an intra-uterine liIe oI less than seven months, it is not
deemed born iI it dies within twenty-Iour hours aIter its complete
delivery Irom the maternal womb. (30a)
Art. 42. Civil personality is extinguished by death.
The eIIect oI death upon the rights and obligations oI the deceased is
determined by law, by contract and by will. (32a)
Art. 43. II there is a doubt, as between two or more persons who are
called to succeed each other, as to which oI them died Iirst, whoever
alleges the death oI one prior to the other, shall prove the same; in the
absence oI prooI, it is presumed that they died at the same time and
there shall be no transmission oI rights Irom one to the other. (33)
1uridical Person
Art. 46. Juridical persons may acquire and possess property oI all
kinds, as well as incur obligations and bring civil or criminal actions,
in conIormity with the laws and regulations oI their organization. (38a)
Marriage
Article 1. Marriage is a special contract oI permanent union between a
man and a woman entered into in accordance with law Ior the
establishment oI conjugal and Iamily liIe. It is the Ioundation oI the
Iamily and an inviolable social institution whose nature, consequences,
and incidents are governed by law and not subject to stipulation,
except that marriage settlements may Iix the property relations during
the marriage within the limits provided by this Code. (52a)
Art. 2. No marriage shall be valid, unless these essential requisites are
present:
(1) Legal capacity oI the contracting parties who must be a
male and a Iemale; and
(2) Consent Ireely given in the presence oI the solemnizing
oIIicer. (53a)
Art. 3. The Iormal requisites oI marriage are:
(1) Authority oI the solemnizing oIIicer;
(2) A valid marriage license except in the cases provided Ior
in Chapter 2 oI this Title; and
(3) A marriage ceremony which takes place with the
appearance oI the contracting parties beIore the solemnizing
oIIicer and their personal declaration that they take each
other as husband and wiIe in the presence oI not less than
two witnesses oI legal age. (53a, 55a)
Art. 4. The absence oI any oI the essential or Iormal requisites shall
render the marriage void ab initio, except as stated in Article 35 (2). A
deIect in any oI the essential requisites shall not aIIect the validity oI
the marriage but the party or parties responsible Ior the irregularity
shall be civilly, criminally and administratively liable. (n)
Article 35 (2). Those solemni:ed bv anv person not legallv
authori:ed to perform marriages unless such marriages were
contracted with either or both parties believing in good faith that the
solemni:ing officer had the legal authoritv to do so,
Art. 45. A marriage mav be annulled for anv of the following
causes, existing at the time of the marriage.
(1) That the partv in whose behalf it is sought to have the
marriage annulled was eighteen vears of age or over but below
twentv-one, and the marriage was solemni:ed without the consent of
the parents, guardian or person having substitute parental authoritv
over the partv, in that order, unless after attaining the age of twentv-
one, such partv freelv cohabited with the other and both lived together
as husband and wife,
(2) That either partv was of unsound mind, unless such partv
after coming to reason, freelv cohabited with the other as husband and
wife,
(3) That the consent of either partv was obtained bv fraud,
unless such partv afterwards, with full knowledge of the facts
constituting the fraud, freelv cohabited with the other as husband and
wife,
(4) That the consent of either partv was obtained bv force,
intimidation or undue influence, unless the same having disappeared
or ceased, such partv thereafter freelv cohabited with the other as
husband and wife,
(5) That either partv was phvsicallv incapable of
consummating the marriage with the other, and such incapacitv
continues and appears to be incurable, or
(6) That either partv was afflicted with a sexuallv-
transmissible disease found to be serious and appears to be incurable.
(85a)
Art. 5. Any male or Iemale oI the age oI eighteen years or upwards not
under any oI the impediments mentioned in Articles 37 and 38, may
contract marriage. (54a)
Art. 37. Marriages between the following are incestuous and
void from the beginning, whether relationship between the parties be
legitimate or illegitimate.
(1) Between ascendants and descendants of anv degree, and
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(2) Between brothers and sisters, whether of the full or half
blood. (81a)
Art. 38. The following marriages shall be void from the
beginning for reasons of public policv.
(1) Between collateral blood relatives whether legitimate or
illegitimate, up to the fourth civil degree,
(2) Between step-parents and step-children,
(3) Between parents-in-law and children-in-law,
(4) Between the adopting parent and the adopted child,
(5) Between the surviving spouse of the adopting parent and the
adopted child,
(6) Between the surviving spouse of the adopted child and the adopter,
(7) Between an adopted child and a legitimate child of the adopter,
(8) Between adopted children of the same adopter, and
(9) Between parties where one, with the intention to marrv the other,
killed that other person´s spouse, or his or her own spouse. (82)
Art. 6. No prescribed Iorm or religious rite Ior the solemnization oI the
marriage is required. It shall be necessary, however, Ior the contracting
parties to appear personally beIore the solemnizing oIIicer and declare
in the presence oI not less than two witnesses oI legal age that they
take each other as husband and wiIe. This declaration shall be
contained in the marriage certiIicate which shall be signed by the
contracting parties and their witnesses and attested by the solemnizing
oIIicer.
In case oI a marriage in articulo mortis, when the party at the point oI
death is unable to sign the marriage certiIicate, it shall be suIIicient Ior
one oI the witnesses to the marriage to write the name oI said party,
which Iact shall be attested by the solemnizing oIIicer. (55a)
Art. 7. Marriage may be solemnized by:
(1) Any incumbent member oI the judiciary within the
court's jurisdiction;
(2) Any priest, rabbi, imam, or minister oI any church or
religious sect duly authorized by his church or religious sect
and registered with the civil registrar general, acting within
the limits oI the written authority granted by his church or
religious sect and provided that at least one oI the
contracting parties belongs to the solemnizing oIIicer's
church or religious sect;
(3) Any ship captain or airplane chieI only in the case
mentioned in Article 31;
(4) Any military commander oI a unit to which a chaplain is
assigned, in the absence oI the latter, during a military
operation, likewise only in the cases mentioned in Article
32;
(5) Any consul-general, consul or vice-consul in the case
provided in Article 10. (56a)
Art. 36. A marriage contracted by any party who, at the time oI the
celebration, was psychologically incapacitated to comply with the
essential marital obligations oI marriage, shall likewise be void even iI
such incapacity becomes maniIest only aIter its solemnization. (As
amended by Executive Order 227)
Art. 39. The action or deIense Ior the declaration oI absolute nullity oI
a marriage shall not prescribe. (As amended by Executive Order
227and Republic Act No. 8533; The phrase "However, in case oI
marriage celebrated beIore the eIIectivity oI this Code and Ialling
under Article 36, such action or deIense shall prescribe in ten years
aIter this Code shall taken eIIect" has been deleted by Republic Act
No. 8533 |Approved February 23, 1998|).
Art. 40. The absolute nullity oI a previous marriage may be invoked
Ior purposes oI remarriage on the basis solely oI a Iinal judgment
declaring such previous marriage void. (n)
Art. 41. A marriage contracted by any person during subsistence oI a
previous marriage shall be null and void, unless beIore the celebration
oI the subsequent marriage, the prior spouse had been absent Ior Iour
consecutive years and the spouse present has a well-Iounded belieI that
the absent spouse was already dead. In case oI disappearance where
there is danger oI death under the circumstances set Iorth in the
provisions oI Article 391 oI the Civil Code, an absence oI only two
years shall be suIIicient.
For the purpose oI contracting the subsequent marriage under the
preceding paragraph the spouse present must institute a summary
proceeding as provided in this Code Ior the declaration oI presumptive
death oI the absentee, without prejudice to the eIIect oI reappearance
oI the absent spouse. (83a)
Art. 391 Civil code. The following shall be presumed dead
for all purposes, including the division of the estate among the heirs.
(1) A person on board a vessel lost during a sea vovage, or
an aeroplane which is missing, who has not been heard of
for four vears since the loss of the vessel or aeroplane,
(2) A person in the armed forces who has taken part in war,
and has been missing for four vears,
(3) A person who has been in danger of death under other
circumstances and his existence has not been known for four
vears. (n)
Art. 42. The subsequent marriage reIerred to in the preceding Article
shall be automatically terminated by the recording oI the aIIidavit oI
reappearance oI the absent spouse, unless there is a judgment annulling
the previous marriage or declaring it void ab initio.
A sworn statement oI the Iact and circumstances oI reappearance shall
be recorded in the civil registry oI the residence oI the parties to the
subsequent marriage at the instance oI any interested person, with due
notice to the spouses oI the subsequent marriage and without prejudice
to the Iact oI reappearance being judicially determined in case such
Iact is disputed. (n)
Art. 43. The termination oI the subsequent marriage reIerred to in the
preceding Article shall produce the Iollowing eIIects:
(1) The children oI the subsequent marriage conceived prior
to its termination shall be considered legitimate;
(2) The absolute community oI property or the conjugal
partnership, as the case may be, shall be dissolved and liquidated, but
iI either spouse contracted said marriage in bad Iaith, his or her share
oI the net proIits oI the community property or conjugal partnership
property shall be IorIeited in Iavor oI the common children or, iI there
are none, the children oI the guilty spouse by a previous marriage or in
deIault oI children, the innocent spouse;
(3) Donations by reason oI marriage shall remain valid,
except that iI the donee contracted the marriage in bad Iaith, such
donations made to said donee are revoked by operation oI law;
(4) The innocent spouse may revoke the designation oI the
other spouse who acted in bad Iaith as beneIiciary in any insurance
policy, even iI such designation be stipulated as irrevocable; and
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(5) The spouse who contracted the subsequent marriage in
bad Iaith shall be disqualiIied to inherit Irom the innocent spouse by
testate and intestate succession. (n)
Art. 44. II both spouses oI the subsequent marriage acted in bad Iaith,
said marriage shall be void ab initio and all donations by reason oI
marriage and testamentary dispositions made by one in Iavor oI the
other are revoked by operation oI law. (n)
Art. 45. A marriage may be annulled Ior any oI the Iollowing causes,
existing at the time oI the marriage:
(1) That the party in whose behalI it is sought to have the
marriage annulled was eighteen years oI age or over but
below twenty-one, and the marriage was solemnized without
the consent oI the parents, guardian or person having
substitute parental authority over the party, in that order,
unless aIter attaining the age oI twenty-one, such party
Ireely cohabited with the other and both lived together as
husband and wiIe;
(2) That either party was oI unsound mind, unless such party
aIter coming to reason, Ireely cohabited with the other as
husband and wiIe;
(3) That the consent oI either party was obtained by Iraud,
unless such party aIterwards, with Iull knowledge oI the
Iacts constituting the Iraud, Ireely cohabited with the other
as husband and wiIe;
(4) That the consent oI either party was obtained by Iorce,
intimidation or undue inIluence, unless the same having
disappeared or ceased, such party thereaIter Ireely cohabited
with the other as husband and wiIe;
(5) That either party was physically incapable oI
consummating the marriage with the other, and such
incapacity continues and appears to be incurable; or
(6) That either party was aIIlicted with a sexually-
transmissible disease Iound to be serious and appears to be
incurable. (85a)
Art. 46. Any oI the Iollowing circumstances shall constitute Iraud
reIerred to in Number 3 oI the preceding Article:
(1) Non-disclosure oI a previous conviction by Iinal
judgment oI the other party oI a crime involving moral turpitude;
(2) Concealment by the wiIe oI the Iact that at the time oI
the marriage, she was pregnant by a man other than her husband;
(3) Concealment oI sexually transmissible disease,
regardless oI its nature, existing at the time oI the marriage; or
(4) Concealment oI drug addiction, habitual alcoholism or
homosexuality or lesbianism existing at the time oI the marriage.
No other misrepresentation or deceit as to character, health, rank,
Iortune or chastity shall constitute such Iraud as will give grounds Ior
action Ior the annulment oI marriage. (86a)
Art. 47. The action Ior annulment oI marriage must be Iiled by the
Iollowing persons and within the periods indicated herein:
(1) For causes mentioned in number 1 oI Article 45 by the
party whose parent or guardian did not give his or her
consent, within Iive years aIter attaining the age oI twenty-
one, or by the parent or guardian or person having legal
charge oI the minor, at any time beIore such party has
reached the age oI twenty-one;
(2) For causes mentioned in number 2 oI Article 45, by the
same spouse, who had no knowledge oI the other's insanity;
or by any relative or guardian or person having legal charge
oI the insane, at any time beIore the death oI either party, or
by the insane spouse during a lucid interval or aIter
regaining sanity;
(3) For causes mentioned in number 3 oI Article 45, by the
injured party, within Iive years aIter the discovery oI the
Iraud;
(4) For causes mentioned in number 4 oI Article 45, by the
injured party, within Iive years Irom the time the Iorce,
intimidation or undue inIluence disappeared or ceased;
(5) For causes mentioned in number 5 and 6 oI Article 45,
by the injured party, within Iive years aIter the marriage.
(87a)
Art. 50. The eIIects provided Ior by paragraphs (2), (3), (4) and (5) oI
Article 43 and by Article 44 shall also apply in the proper cases to
marriages which are declared ab initio or annulled by Iinal judgment
under Articles 40 and 45.
The Iinal judgment in such cases shall provide Ior the liquidation,
partition and distribution oI the properties oI the spouses, the custody
and support oI the common children, and the delivery oI third
presumptive legitimes, unless such matters had been adjudicated in
previous judicial proceedings.
All creditors oI the spouses as well as oI the absolute community or
the conjugal partnership shall be notiIied oI the proceedings Ior
liquidation.
In the partition, the conjugal dwelling and the lot on which it is
situated, shall be adjudicated in accordance with the provisions oI
Articles 102 and 129.
Art. 51. In said partition, the value oI the presumptive legitimes oI all
common children, computed as oI the date oI the Iinal judgment oI the
trial court, shall be delivered in cash, property or sound securities,
unless the parties, by mutual agreement judicially approved, had
already provided Ior such matters.
The children or their guardian or the trustee oI their property may ask
Ior the enIorcement oI the judgment.
The delivery oI the presumptive legitimes herein prescribed shall in no
way prejudice the ultimate successional rights oI the children accruing
upon the death oI either oI both oI the parents; but the value oI the
properties already received under the decree oI annulment or absolute
nullity shall be considered as advances on their legitime. (n)
Art. 52. The judgment oI annulment or oI absolute nullity oI the
marriage, the partition and distribution oI the properties oI the spouses
and the delivery oI the children's presumptive legitimes shall be
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recorded in the appropriate civil registry and registries oI property;
otherwise, the same shall not aIIect third persons. (n)
Art. 53. Either oI the Iormer spouses may marry again aIter
compliance with the requirements oI the immediately preceding
Article; otherwise, the subsequent marriage shall be null and void.
Art. 54. Children conceived or born beIore the judgment oI annulment
or absolute nullity oI the marriage under Article 36 has become Iinal
and executory shall be considered legitimate. Children conceived or
born oI the subsequent marriage under Article 53 shall likewise be
legitimate.
Legal Separation

Art. 55. A petition Ior legal separation may be Iiled on any oI the
Iollowing grounds:
(1) Repeated physical violence or grossly abusive conduct
directed against the petitioner, a common child, or a child oI the
petitioner;
(2) Physical violence or moral pressure to compel the
petitioner to change religious or political aIIiliation;
(3) Attempt oI respondent to corrupt or induce the petitioner,
a common child, or a child oI the petitioner, to engage in prostitution,
or connivance in such corruption or inducement;
(4) Final judgment sentencing the respondent to
imprisonment oI more than six years, even iI pardoned;
(5) Drug addiction or habitual alcoholism oI the respondent;
(6) Lesbianism or homosexuality oI the respondent;
(7) Contracting by the respondent oI a subsequent bigamous
marriage, whether in the Philippines or abroad;
(8) Sexual inIidelity or perversion;
(9) Attempt by the respondent against the liIe oI the
petitioner; or
(10) Abandonment oI petitioner by respondent without
justiIiable cause Ior more than one year.
For purposes oI this Article, the term "child" shall include a child by
nature or by adoption. (9a)
Art. 56. The petition Ior legal separation shall be denied on any oI the
Iollowing grounds:
(1) Where the aggrieved party has condoned the oIIense or
act complained oI;
(2) Where the aggrieved party has consented to the
commission oI the oIIense or act complained oI;
(3) Where there is connivance between the parties in the
commission oI the oIIense or act constituting the ground Ior legal
separation;
(4) Where both parties have given ground Ior legal
separation;
(5) Where there is collusion between the parties to obtain
decree oI legal separation; or
(6) Where the action is barred by prescription. (100a)
Art. 57. An action Ior legal separation shall be Iiled within Iive years
Irom the time oI the occurrence oI the cause. (102)
Art. 58. An action Ior legal separation shall in no case be tried beIore
six months shall have elapsed since the Iiling oI the petition. (103)
Art. 59. No legal separation may be decreed unless the Court has taken
steps toward the reconciliation oI the spouses and is Iully satisIied,
despite such eIIorts, that reconciliation is highly improbable. (n)
Art. 60. No decree oI legal separation shall be based upon a stipulation
oI Iacts or a conIession oI judgment.
In any case, the Court shall order the prosecuting attorney or Iiscal
assigned to it to take steps to prevent collusion between the parties and
to take care that the evidence is not Iabricated or suppressed. (101a)
Art. 61. AIter the Iiling oI the petition Ior legal separation, the spouses
shall be entitled to live separately Irom each other.
The court, in the absence oI a written agreement between the spouses,
shall designate either oI 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 oI a guardian under the Rules oI Court. (104a)
Art. 62. During the pendency oI the action Ior legal separation, the
provisions oI Article 49 shall likewise apply to the support oI the
spouses and the custody and support oI the common children. (105a)
Art. 63. The decree oI legal separation shall have the Iollowing eIIects:
(1) The spouses shall be entitled to live separately Irom 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 oIIending spouse shall have
no right to any share oI the net proIits earned by the absolute
community or the conjugal partnership, which shall be IorIeited in
accordance with the provisions oI Article 43(2);
(3) The custody oI the minor children shall be awarded to
the innocent spouse, subject to the provisions oI Article 213 oI this
Code; and
(4) The oIIending spouse shall be disqualiIied Irom
inheriting Irom the innocent spouse by intestate succession. Moreover,
provisions in Iavor oI the oIIending spouse made in the will oI the
innocent spouse shall be revoked by operation oI law. (106a)
Rights and Obligation between Husband and Wife
Art. 68. The husband and wiIe are obliged to live together, observe
mutual love, respect and Iidelity, and render mutual help and support.
(109a)
Art. 72. When one oI the spouses neglects his or her duties to the
conjugal union or commits acts which tend to bring danger, dishonor
or injury to the other or to the Iamily, the aggrieved party may apply to
the court Ior relieI. (116a)
Art. 73. Either spouse may exercise any legitimate proIession,
occupation, business or activity without the consent oI the other. The
latter may object only on valid, serious, and moral grounds.
In case oI disagreement, the court shall decide whether or not:

( 1) The objection is proper; and
( 2) BeneIit has occurred to the Iamily prior to the objection or
thereaIter. II the beneIit accrued prior to the objection, the resulting
6
obligation shall be enIorced against the separate property oI the spouse
who has not obtained consent.
The Ioregoing provisions shall not prejudice the rights oI creditors who
acted in good Iaith. (117a)
Property Relation
Art. 74. The property relationship between husband and wiIe shall be
governed in the Iollowing order:
(1) By marriage settlements executed beIore the marriage;
(2) By the provisions oI this Code; and
(3) By the local custom. (118)
Art. 75. The Iuture spouses may, in the marriage settlements, agree
upon the regime oI absolute community, conjugal partnership oI gains,
complete separation oI property, or any other regime. In the absence oI
a marriage settlement, or when the regime agreed upon is void, the
system oI absolute community oI property as established in this Code
shall govern. (119a)
Art. 76. In order that any modiIication in the marriage settlements may
be valid, it must be made beIore the celebration oI the marriage,
subject to the provisions oI Articles 66, 67, 128, 135 and 136. (121)
Art. 77. The marriage settlements and any modiIication thereoI shall
be in writing, signed by the parties and executed beIore the celebration
oI 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 oI properties. (122a)
Donation
Art. 82. Donations by reason oI marriage are those which are made
beIore its celebration, in consideration oI the same, and in Iavor oI one
or both oI the Iuture spouses. (126)
Art. 83. These donations are governed by the rules on ordinary
donations established in Title III oI Book III oI the Civil Code, insoIar
as they are not modiIied by the Iollowing articles. (127a)
Art. 84. II the Iuture spouses agree upon a regime other than the
absolute community oI property, they cannot donate to each other in
their marriage settlements more than one-IiIth oI their present
property. Any excess shall be considered void.
Donations oI Iuture property shall be governed by the provisions on
testamentary succession and the Iormalities oI wills. (130a)
Art. 86. A donation by reason oI marriage may be revoked by the
donor in the Iollowing cases:
(1) II the marriage is not celebrated or judicially declared
void ab initio except donations made in the marriage
settlements, which shall be governed by Article 81;
(2) When the marriage takes place without the consent oI the
parents or guardian, as required by law;
(3) When the marriage is annulled, and the donee acted in
bad Iaith;
(4) Upon legal separation, the donee being the guilty spouse;
(5) II it is with a resolutory condition and the condition is
complied with;
(6) When the donee has committed an act oI ingratitude as
speciIied by the provisions oI the Civil Code on donations in
general. (132a)
Art. 87. Every donation or grant oI gratuitous advantage, direct or
indirect, between the spouses during the marriage shall be void, except
moderate giIts which the spouses may give each other on the occasion
oI any Iamily rejoicing. The prohibition shall also apply to persons
living together as husband and wiIe without a valid marriage. (133a)
System Of Absolute Community
Art. 89. No waiver oI rights, shares and eIIects oI the absolute
community oI property during the marriage can be made except in case
oI judicial separation oI property.
When the waiver takes place upon a judicial separation oI property, or
aIter the marriage has been dissolved or annulled, the same shall
appear in a public instrument and shall be recorded as provided in
Article 77. The creditors oI the spouse who made such waiver may
petition the court to rescind the waiver to the extent oI the amount
suIIicient to cover the amount oI their credits. (146a)
Art. 90. The provisions on co-ownership shall apply to the absolute
community oI property between the spouses in all matters not provided
Ior in this Chapter. (n)
Art. 91. Unless otherwise provided in this Chapter or in the marriage
settlements, the community property shall consist oI all the property
owned by the spouses at the time oI the celebration oI the marriage or
acquired thereaIter. (197a)
Art. 92. The Iollowing shall be excluded Irom the community
property:
(1) Property acquired during the marriage by gratuitous title
by either spouse, and the Iruits as well as the income thereoI,
iI any, unless it is expressly provided by the donor, testator
or grantor that they shall Iorm part oI the community
property;
(2) Property Ior personal and exclusive use oI either spouse.
However, jewelry shall Iorm part oI the community
property;
(3) Property acquired beIore the marriage by either spouse
who has legitimate descendants by a Iormer marriage, and
the Iruits as well as the income, iI any, oI such property.
(201a)
Property Relationship
(Article 94 and 191)
7
Art. 94. The absolute community oI property shall be liable Ior:
(1) The support oI the spouses, their common children, and legitimate
children oI either spouse; however, the support oI illegitimate children
shall be governed by the provisions oI this Code on Support;
(2) All debts and obligations contracted during the marriage by the
designated administrator-spouse Ior the beneIit oI the community, or
by both spouses, or by one spouse with the consent oI the other;
(3) Debts and obligations contracted by either spouse without the
consent oI the other to the extent that the Iamily may have been
beneIited;
(4) All taxes, liens, charges and expenses, including major or minor
repairs, upon the community property;
(5) All taxes and expenses Ior mere preservation made during marriage
upon the separate property oI either spouse used by the Iamily;
(6) Expenses to enable either spouse to commence or complete a
proIessional or vocational course, or other activity Ior selI-
improvement;
(7) Ante-nuptial debts oI either spouse insoIar as they have redounded
to the beneIit oI the Iamily;
(8) The value oI what is donated or promised by both spouses in Iavor
oI their common legitimate children Ior the exclusive purpose oI
commencing or completing a proIessional or vocational course or
other activity Ior selI-improvement;
(9) Ante-nuptial debts oI either spouse other than those Ialling under
paragraph (7) oI this Article, the support oI illegitimate children oI
either spouse, and liabilities incurred by either spouse by reason oI a
crime or a quasi-delict, in case oI absence or insuIIiciency oI the
exclusive property oI the debtor-spouse, the payment oI which shall be
considered as advances to be deducted Irom the share oI the debtor-
spouse upon liquidation oI the community; and
(10) Expenses oI litigation between the spouses unless the suit is Iound
to be groundless.
II the community property is insuIIicient to cover the Ioregoing
liabilities, except those Ialling under paragraph (9), the spouses shall
be solidarily liable Ior the unpaid balance with their separate
properties. (161a, 162a, 163a, 202a-205a)

Art. 121. The conjugal partnership shall be liable Ior:
(1) The support oI the spouse, their common children, and the
legitimate children oI either spouse; however, the support oI
illegitimate children shall be governed by the provisions oI this Code
on Support;
(2) All debts and obligations contracted during the marriage by the
designated administrator-spouse Ior the beneIit oI the conjugal
partnership oI gains, or by both spouses or by one oI them with the
consent oI the other;
(3) Debts and obligations contracted by either spouse without the
consent oI the other to the extent that the Iamily may have beneIited;
(4) All taxes, liens, charges, and expenses, including major or minor
repairs upon the conjugal partnership property;
(5) All taxes and expenses Ior mere preservation made during the
marriage upon the separate property oI either spouse;
(6) Expenses to enable either spouse to commence or complete a
proIessional, vocational, or other activity Ior selI-improvement;
(7) Ante-nuptial debts oI either spouse insoIar as they have redounded
to the beneIit oI the Iamily;
(8) The value oI what is donated or promised by both spouses in Iavor
oI their common legitimate children Ior the exclusive purpose oI
commencing or completing a proIessional or vocational course or
other activity Ior selI-improvement; and
(9) Expenses oI litigation between the spouses unless the suit is Iound
to groundless.
II the conjugal partnership is insuIIicient to cover the Ioregoing
liabilities, the spouses shall be solidarily liable Ior the unpaid balance
with their separate properties. (161a)
Art. 122. The payment oI personal debts contracted by the husband or
the wiIe beIore or during the marriage shall not be charged to the
conjugal properties partnership except insoIar as they redounded to the
beneIit oI the Iamily.
Neither shall the Iines and pecuniary indemnities imposed upon them
be charged to the partnership.
However, the payment oI personal debts contracted by either spouse
beIore the marriage, that oI Iines and indemnities imposed upon them,
as well as the support oI illegitimate children oI either spouse, may be
enIorced against the partnership assets aIter the responsibilities
enumerated in the preceding Article have been covered, iI the spouse
who is bound should have no exclusive property or iI it should be
insuIIicient; but at the time oI the liquidation oI the partnership, such
spouse shall be charged Ior what has been paid Ior the purpose above-
mentioned. (163a)
(Article 96 and 124)
Art. 96. The administration and enjoyment oI the community property
shall belong to both spouses jointly. In case oI disagreement, the
husband's decision shall prevail, subject to recourse to the court by the
wiIe Ior proper remedy, which must be availed oI within Iive years
Irom the date oI the contract implementing such decision.
In the event that one spouse is incapacitated or otherwise unable to
participate in the administration oI the common properties, the other
spouse may assume sole powers oI administration. These powers do
not include disposition or encumbrance without authority oI the court
or the written consent oI the other spouse. In the absence oI such
authority or consent, the disposition or encumbrance shall be void.
However, the transaction shall be construed as a continuing oIIer on
the part oI the consenting spouse and the third person, and may be
perIected as a binding contract upon the acceptance by the other
spouse or authorization by the court beIore the oIIer is withdrawn by
either or both oIIerors. (206a)
Art. 124. The administration and enjoyment oI the conjugal
partnership shall belong to both spouses jointly. In case oI
disagreement, the husband's decision shall prevail, subject to recourse
to the court by the wiIe Ior proper remedy, which must be availed oI
within Iive years Irom the date oI the contract implementing such
decision.
In the event that one spouse is incapacitated or otherwise unable to
participate in the administration oI the conjugal properties, the other
spouse may assume sole powers oI administration. These powers do
8
not include disposition or encumbrance without authority oI the court
or the written consent oI the other spouse. In the absence oI such
authority or consent, the disposition or encumbrance shall be void.
However, the transaction shall be construed as a continuing oIIer on
the part oI the consenting spouse and the third person, and may be
perIected as a binding contract upon the acceptance by the other
spouse or authorization by the court beIore the oIIer is withdrawn by
either or both oIIerors. (165a)
(Article 103 and 130) liquidation
Art. 103. Upon the termination oI the marriage by death, the
community property shall be liquidated in the same proceeding Ior the
settlement oI the estate oI the deceased.
II no judicial settlement proceeding is instituted, the surviving spouse
shall liquidate the community property either judicially or extra-
judicially within six months Irom the death oI the deceased spouse. II
upon the lapse oI the six months period, no liquidation is made, any
disposition or encumbrance involving the community property oI the
terminated marriage shall be void.
Should the surviving spouse contract a subsequent marriage without
compliance with the Ioregoing requirements, a mandatory regime oI
complete separation oI property shall govern the property relations oI
the subsequent marriage. (n)
Art. 130. Upon the termination oI the marriage by death, the conjugal
partnership property shall be liquidated in the same proceeding Ior the
settlement oI the estate oI the deceased.
II no judicial settlement proceeding is instituted, the surviving spouse
shall liquidate the conjugal partnership property either judicially or
extra-judicially within six months Irom the death oI the deceased
spouse. II upon the lapse oI the six-month period no liquidation is
made, any disposition or encumbrance involving the conjugal
partnership property oI the terminated marriage shall be void.
Should the surviving spouse contract a subsequent marriage without
compliance with the Ioregoing requirements, a mandatory regime oI
complete separation oI property shall govern the property relations oI
the subsequent marriage. (n)
What Constitute Community Property
Art. 91. Unless otherwise provided in this Chapter or in the marriage
settlements, the community property shall consist oI all the property
owned by the spouses at the time oI the celebration oI the marriage or
acquired thereaIter. (197a)
Art. 92. The Iollowing shall be excluded Irom the community
property:
(1) Property acquired during the marriage by gratuitous title by either
spouse, and the Iruits as well as the income thereoI, iI any, unless it is
expressly provided by the donor, testator or grantor that they shall
Iorm part oI the community property;
(2) Property Ior personal and exclusive use oI either spouse. However,
jewelry shall Iorm part oI the community property;
(3) Property acquired beIore the marriage by either spouse who has
legitimate descendants by a Iormer marriage, and the Iruits as well as
the income, iI any, oI such property. (201a)
Art. 93. Property acquired during the marriage is presumed to belong
to the community, unless it is proved that it is one oI those excluded
thereIrom. (160)

Art. 106. Under the regime oI conjugal partnership oI gains, the
husband and wiIe place in a common Iund the proceeds, products,
Iruits and income Irom their separate properties and those acquired by
either or both spouses through their eIIorts or by chance, and, upon
dissolution oI the marriage or oI the partnership, the net gains or
beneIits obtained by either or both spouses shall be divided equally
between them, unless otherwise agreed in the marriage settlements.
(142a)
Art. 116. All property acquired during the marriage, whether the
acquisition appears to have been made, contracted or registered in the
name oI one or both spouses, is presumed to be conjugal unless the
contrary is proved. (160a)
Art. 117. The Iollowing are conjugal partnership properties:
(1) Those acquired by onerous title during the marriage at the expense
oI the common Iund, whether the acquisition be Ior the partnership, or
Ior only one oI the spouses;
(2) Those obtained Irom the labor, industry, work or proIession oI
either or both oI the spouses;
(3) The Iruits, natural, industrial, or civil, due or received during the
marriage Irom the common property, as well as the net Iruits Irom the
exclusive property oI each spouse;
(4) The share oI either spouse in the hidden treasure which the law
awards to the Iinder or owner oI the property where the treasure is
Iound;
(5) Those acquired through occupation such as Iishing or hunting;
(6) Livestock existing upon the dissolution oI the partnership in excess
oI the number oI each kind brought to the marriage by either spouse;
and
(7) Those which are acquired by chance, such as winnings Irom
gambling or betting. However, losses thereIrom shall be borne
exclusively by the loser-spouse. (153a, 154a, 155, 159)
Art. 118. Property bought on installments paid partly Irom exclusive
Iunds oI either or both spouses and partly Irom conjugal Iunds belongs
to the buyer or buyers iI Iull ownership was vested beIore the marriage
and to the conjugal partnership iI such ownership was vested during
the marriage. In either case, any amount advanced by the partnership
or by either or both spouses shall be reimbursed by the owner or
owners upon liquidation oI the partnership. (n)

Art. 119. Whenever an amount or credit payable within a period oI
time belongs to one oI the spouses, the sums which may be collected
during the marriage in partial payments or by installments on the
principal shall be the exclusive property oI the spouse. However,
interests Ialling due during the marriage on the principal shall belong
to the conjugal partnership. (156a, 157a)
Art. 120. The ownership oI improvements, whether Ior utility or
adornment, made on the separate property oI the spouses at the
expense oI the partnership or through the acts or eIIorts oI either or
9
both spouses shall pertain to the conjugal partnership, or to the original
owner-spouse, subject to the Iollowing rules:
When the cost oI the improvement made by the conjugal partnership
and any resulting increase in value are more than the value oI the
property at the time oI the improvement, the entire property oI one oI
the spouses shall belong to the conjugal partnership, subject to
reimbursement oI the value oI the property oI the owner-spouse at the
time oI the improvement; otherwise, said property shall be retained in
ownership by the owner-spouse, likewise subject to reimbursement oI
the cost oI the improvement.
In either case, the ownership oI the entire property shall be vested
upon the reimbursement, which shall be made at the time oI the
liquidation oI the conjugal partnership. (158a)
Art. 127. The separation in Iact between husband and wiIe shall not
aIIect the regime oI conjugal partnership, except that:
(1) The spouse who leaves the conjugal home or reIuses to
live therein, without just cause, shall not have the right to be
supported;
(2) When the consent oI one spouse to any transaction oI the
other is required by law, judicial authorization shall be
obtained in a summary proceeding;
(3) In the absence oI suIIicient conjugal partnership
property, the separate property oI both spouses shall be
solidarily liable Ior the support oI the Iamily. The spouse
present shall, upon petition in a summary proceeding, be
given judicial authority to administer or encumber any
speciIic separate property oI the other spouse and use the
Iruits or proceeds thereoI to satisIy the latter's share. (178a)
Art. 128. II a spouse without just cause abandons the other or Iails to
comply with his or her obligation to the Iamily, the aggrieved spouse
may petition the court Ior receivership, Ior judicial separation oI
property, or Ior authority to be the sole administrator oI the conjugal
partnership property, subject to such precautionary conditions as the
court may impose.
The obligations to the Iamily mentioned in the preceding paragraph
reIer to marital, parental or property relations.
A spouse is deemed to have abandoned the other when he or she has
leIt the conjugal dwelling without intention oI returning. The spouse
who has leIt the conjugal dwelling Ior a period oI three months or has
Iailed within the same period to give any inIormation as to his or her
whereabouts shall be prima Iacie presumed to have no intention oI
returning to the conjugal dwelling. (167a, 191a)

Art. 134. In the absence oI an express declaration in the marriage
settlements, the separation oI property between spouses during the
marriage shall not take place except by judicial order. Such judicial
separation oI property may either be voluntary or Ior suIIicient cause.
(190a)

Art. 135. Any oI the Iollowing shall be considered suIIicient cause Ior
judicial separation oI property:
(1) That the spouse oI the petitioner has been sentenced to a penalty
which carries with it civil interdiction;
(2) That the spouse oI the petitioner has been judicially declared an
absentee;
(3) That loss oI parental authority oI the spouse oI petitioner has been
decreed by the court;
(4) That the spouse oI the petitioner has abandoned the latter or Iailed
to comply with his or her obligations to the Iamily as provided Ior in
Article 101;
(5) That the spouse granted the power oI administration in the
marriage settlements has abused that power; and
(6) That at the time oI the petition, the spouses have been separated in
Iact Ior at least one year and reconciliation is highly improbable.
In the cases provided Ior in Numbers (1), (2) and (3), the presentation
oI the Iinal judgment against the guilty or absent spouse shall be
enough basis Ior the grant oI the decree oI judicial separation oI
property. (191a)
Art. 101. If a spouse without fust cause abandons the other or fails to
complv with his or her obligations to the familv, the aggrieved spouse
mav petition the court for receivership, for fudicial separation of
propertv or for authoritv to be the sole administrator of the absolute
communitv, subfect to such precautionarv conditions as the court mav
impose
.
The obligations to the familv mentioned in the preceding paragraph
refer to marital, parental or propertv relations.
A spouse is deemed to have abandoned the other when her or she has
left the confugal dwelling without intention of returning. The spouse
who has left the confugal dwelling for a period of three months or has
failed within the same period to give anv information as to his or her
whereabouts shall be prima facie presumed to have no intention of
returning to the confugal dwelling. (178a)

Art. 136. The spouses may jointly Iile a veriIied petition with the court
Ior the voluntary dissolution oI the absolute community or the conjugal
partnership oI gains, and Ior the separation oI their common properties.
All creditors oI the absolute community or oI the conjugal partnership
oI gains, as well as the personal creditors oI the spouse, shall be listed
in the petition and notiIied oI the Iiling thereoI. The court shall take
measures to protect the creditors and other persons with pecuniary
interest. (191a)
Co-ownership
Art. 147. When a man and a woman who are capacitated to marry each
other, live exclusively with each other as husband and wiIe without the
beneIit oI marriage or under a void marriage, their wages and salaries
shall be owned by them in equal shares and the property acquired by
both oI them through their work or industry shall be governed by the
rules on co-ownership.
10
In the absence oI prooI to the contrary, properties acquired while they
lived together shall be presumed to have been obtained by their joint
eIIorts, work or industry, and shall be owned by them in equal shares.
For purposes oI this Article, a party who did not participate in the
acquisition by the other party oI any property shall be deemed to have
contributed jointly in the acquisition thereoI iI the Iormer's eIIorts
consisted in the care and maintenance oI the Iamily and oI the
household.
Neither party can encumber or dispose by acts inter vivos oI his or her
share in the property acquired during cohabitation and owned in
common, without the consent oI the other, until aIter the termination oI
their cohabitation.

When only one oI the parties to a void marriage is in good Iaith, the
share oI the party in bad Iaith in the co-ownership shall be IorIeited in
Iavor oI their common children. In case oI deIault oI or waiver by any
or all oI the common children or their descendants, each vacant share
shall belong to the respective surviving descendants. In the absence oI
descendants, such share shall belong to the innocent party. In all cases,
the IorIeiture shall take place upon termination oI the cohabitation.
(144a)
Art. 148. In cases oI cohabitation not Ialling under the preceding
Article, only the properties acquired by both oI the parties through
their actual joint contribution oI money, property, or industry shall be
owned by them in common in proportion to their respective
contributions. In the absence oI prooI to the contrary, their
contributions and corresponding shares are presumed to be equal. The
same rule and presumption shall apply to joint deposits oI money and
evidences oI credit.
II one oI the parties is validly married to another, his or her share in the
co-ownership shall accrue to the absolute community or conjugal
partnership existing in such valid marriage. II the party who acted in
bad Iaith is not validly married to another, his or her shall be IorIeited
in the manner provided in the last paragraph oI the preceding Article.
The Ioregoing rules on IorIeiture shall likewise apply even iI both
parties are in bad Iaith. (144a)
Family Home
Art. 151. No suit between members oI the same Iamily shall prosper
unless it should appear Irom the veriIied complaint or petition that
earnest eIIorts toward a compromise have been made, but that the
same have Iailed. II it is shown that no such eIIorts were in Iact made,
the same case must be dismissed.
This rules shall not apply to cases which may not be the subject oI
compromise under the Civil Code. (222a)
Art. 152. The Iamily home, constituted jointly by the husband and the
wiIe or by an unmarried head oI a Iamily, is the dwelling house where
they and their Iamily reside, and the land on which it is situated. (223a)
Art. 153. The Iamily home is deemed constituted on a house and lot
Irom the time it is occupied as a Iamily residence. From the time oI its
constitution and so long as any oI its beneIiciaries actually resides
therein, the Iamily home continues to be such and is exempt Irom
execution, Iorced sale or attachment except as hereinaIter provided and
to the extent oI the value allowed by law. (223a)
Art. 154. The beneIiciaries oI a Iamily home are:
(1) The husband and wiIe, or an unmarried person who is the
head oI a Iamily; and
(2) Their parents, ascendants, descendants, brothers and
sisters, whether the relationship be legitimate or illegitimate,
who are living in the Iamily home and who depend upon the
head oI the Iamily Ior legal support. (226a)
Art. 155. The Iamily home shall be exempt Irom execution, Iorced sale
or attachment except:
(1) For nonpayment oI taxes;
(2) For debts incurred prior to the constitution oI the Iamily home;
(3) For debts secured by mortgages on the premises beIore or aIter
such constitution; and
(4) For debts due to laborers, mechanics, architects, builders,
materialmen and others who have rendered service or Iurnished
material Ior the construction oI the building. (243a)
be owned by them in common in proportion to their respective
contributions. In the absence oI prooI to the contrary, their
contributions and corresponding shares are presumed to be equal. The
same rule and presumption shall apply to joint deposits oI money and
evidences oI credit.
II one oI the parties is validly married to another, his or her share in the
co-ownership shall accrue to the absolute community or conjugal
partnership existing in such valid marriage. II the party who acted in
bad Iaith is not validly married to another, his or her shall be IorIeited
in the manner provided in the last paragraph oI the preceding Article.
The Ioregoing rules on IorIeiture shall likewise apply even iI both
parties are in bad Iaith. (144a)
Art. 161. For purposes oI availing oI the beneIits oI a Iamily home as
provided Ior in this Chapter, a person may constitute, or be the
beneIiciary oI, only one Iamily home. (n)
Paternity and Filiation
Art. 164. Children conceived or born during the marriage oI the
parents are legitimate.
Children conceived as a result oI artiIicial insemination oI the wiIe
with the sperm oI the husband or that oI a donor or both are likewise
legitimate children oI the husband and his wiIe, provided, that both oI
them authorized or ratiIied such insemination in a written instrument
executed and signed by them beIore the birth oI the child. The
instrument shall be recorded in the civil registry together with the birth
certiIicate oI the child. (55a, 258a)
Art. 165. Children conceived and born outside a valid marriage are
illegitimate, unless otherwise provided in this Code. (n)
Art. 166. Legitimacy oI a child may be impugned only on the
Iollowing grounds:
(1) That it was physically impossible Ior the husband to have sexual
intercourse with his wiIe within the Iirst 120 days oI the 300 days
which immediately preceded the birth oI the child because oI:

(a) the physical incapacity oI the husband to have sexual intercourse
with his wiIe;
11
(b) the Iact that the husband and wiIe were living separately in such a
way that sexual intercourse was not possible; or
prevented sexual intercourse;
(2) That it is proved that Ior biological or other scientiIic reasons, the
child could not have been that oI the husband, except in the instance
provided in the second paragraph oI Article 164; or
(3) That in case oI children conceived through artiIicial insemination,
the written authorization or ratiIication oI either parent was obtained
through mistake, Iraud, violence, intimidation, or undue inIluence.
(255a)
Art. 168. II the marriage is terminated and the mother contracted
another marriage within three hundred days aIter such termination oI
the Iormer marriage, these rules shall govern in the absence oI prooI to
the contrary:
(1) A child born beIore one hundred eighty days aIter the
solemnization oI the subsequent marriage is considered to have been
conceived during the Iormer marriage, provided it be born within three
hundred days aIter the termination oI the Iormer marriage;
(2) A child born aIter one hundred eighty days Iollowing the
celebration oI the subsequent marriage is considered to have been
conceived during such marriage, even though it be born within the
three hundred days aIter the termination oI the Iormer marriage.
Art. 170. The action to impugn the legitimacy oI the child shall be
brought within one year Irom the knowledge oI the birth or its
recording in the civil register, iI the husband or, in a proper case, any
oI his heirs, should reside in the city or municipality where the birth
took place or was recorded.
II the husband or, in his deIault, all oI his heirs do not reside at the
place oI birth as deIined in the Iirst paragraph or where it was
recorded, the period shall be two years iI they should reside in the
Philippines; and three years iI abroad. II the birth oI the child has been
concealed Irom or was unknown to the husband or his heirs, the period
shall be counted Irom the discovery or knowledge oI the birth oI the
child or oI the Iact oI registration oI said birth, whichever is earlier.
(263a)
Art. 171. The heirs oI the husband may impugn the Iiliation oI the
child within the period prescribed in the preceding article only in the
Iollowing cases:
(1) II the husband should died beIore the expiration oI the period Iixed
Ior bringing his action;
(2) II he should die aIter the Iiling oI the complaint without having
desisted thereIrom; or
(3) II the child was born aIter the death oI the husband. (262a)
Chapter 2. ProoI oI Filiation

Art. 172. The Iiliation oI legitimate children is established by any oI
the Iollowing:
(1) The record oI birth appearing in the civil register or a Iinal
judgment; or
(2) An admission oI legitimate Iiliation in a public document or a
private handwritten instrument and signed by the parent concerned.
In the absence oI the Ioregoing evidence, the legitimate Iiliation shall
be
proved by:
(1) The open and continuous possession oI the status oI a legitimate
child; or
(2) Any other means allowed by the Rules oI Court and special laws.
(265a, 266a, 267a)
Art. 173. The action to claim legitimacy may be brought by the child
during his or her liIetime and shall be transmitted to the heirs should
the child die during minority or in a state oI insanity. In these cases,
the heirs shall have a period oI Iive years within which to institute the
action.
Art. 174. Legitimate children shall have the right:
(1) To bear the surnames oI the Iather and the mother, in
conIormity with the provisions oI the Civil Code on
Surnames;
(2) To receive support Irom their parents, their ascendants,
and in proper cases, their brothers and sisters, in conIormity
with the provisions oI this Code on Support; and
(3) To be entitled to the legitimate and other successional
rights granted to them by the Civil Code. (264a)
Art. 175. Illegitimate children may establish their illegitimate Iiliation
in the same way and on the same evidence as legitimate children.
The action must be brought within the same period speciIied in Article
173, except when the action is based on the second paragraph oI
Article 172, in which case the action may be brought during the
liIetime oI the alleged parent. (289a)
Art. 176. Illegitimate children shall use the surname and shall be under
the parental authority oI their mother, and shall be entitled to support
in conIormity with this Code. The legitime oI each illegitimate child
shall consist oI one-halI oI the legitime oI a legitimate child. Except
Ior this modiIication, all other provisions in the Civil Code governing
successional rights shall remain in Iorce. (287a)
Legitimation
Art. 177. Only children conceived and born outside oI wedlock oI
parents who, at the time oI the conception oI the Iormer, were not
disqualiIied by any impediment to marry each other may be
legitimated. (269a)
Art. 178. Legitimation shall take place by a subsequent valid marriage
between parents. The annulment oI a voidable marriage shall not aIIect
the legitimation. (270a)
Art. 179. Legitimated children shall enjoy the same rights as legitimate
children. (272a)
Art. 180. The eIIects oI legitimation shall retroact to the time oI the
child's birth. (273a)
Art. 184. The Iollowing persons may not adopt:
(1) The guardian with respect to the ward prior to the
approval oI the Iinal accounts rendered upon the termination
oI their guardianship relation;
(2) Any person who has been convicted oI a crime involving
moral turpitude;
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(3) An alien, except:

(a) A Iormer Filipino citizen who seeks to adopt a
relative by consanguinity;
(b) One who seeks to adopt the legitimate child oI
his or her Filipino spouse; or
(c) One who is married to a Filipino citizen and
seeks to adopt jointly with his or her spouse a
relative by consanguinity oI the latter.
Aliens not included in the Ioregoing exceptions may adopt Filipino
children in accordance with the rules on inter-country adoptions as
may be provided by law. (28a, E. O. 91 and PD 603)
Art. 190. Legal or intestate succession to the estate oI the adopted shall
be governed by the Iollowing rules:
(1) Legitimate and illegitimate children and descendants and
the surviving spouse oI the adopted shall inherit Irom the
adopted, in accordance with the ordinary rules oI legal or
intestate succession;
(2) When the parents, legitimate or illegitimate, or the
legitimate ascendants oI the adopted concur with the
adopter, they shall divide the entire estate, one-halI to be
inherited by the parents or ascendants and the other halI, by
the adopters;
(3) When the surviving spouse or the illegitimate children oI
the adopted concur with the adopters, they shall divide the
entire estate in equal shares, one-halI to be inherited by the
spouse or the illegitimate children oI the adopted and the
other halI, by the adopters.
(4) When the adopters concur with the illegitimate children
and the surviving spouse oI the adopted, they shall divide the
entire estate in equal shares, one-third to be inherited by the
illegitimate children, one-third by the surviving spouse, and
one-third by the adopters;
(5) When only the adopters survive, they shall inherit the
entire estate; and
(6) When only collateral blood relatives oI the adopted
survive, then the ordinary rules oI legal or intestate
succession shall apply. (39(4)a, PD 603)
Art. 191. II the adopted is a minor or otherwise incapacitated, the
adoption may be judicially rescinded upon petition oI any person
authorized by the court or proper government instrumental acting on
his behalI, on the same grounds prescribed Ior loss or suspension oI
parental authority. II the adopted is at least eighteen years oI age, he
may petition Ior judicial rescission oI the adoption on the same
grounds prescribed Ior disinheriting an ascendant. (40a, PD 603)
Art. 192. The adopters may petition the court Ior the judicial rescission
oI the adoption in any oI the Iollowing cases:
(1) II the adopted has committed any act constituting ground
Ior disinheriting a descendant; or
(2) When the adopted has abandoned the home oI the
adopters during minority Ior at least one year, or, by some
other acts, has deIinitely repudiated the adoption. (41a, PD
603)
Art. 193. II the adopted minor has not reached the age oI majority at
the time oI the judicial rescission oI the adoption, the court in the same
proceeding shall reinstate the parental authority oI the parents by
nature, unless the latter are disqualiIied or incapacitated, in which case
the court shall appoint a guardian over the person and property oI the
minor. II the adopted person is physically or mentally handicapped, the
court shall appoint in the same proceeding a guardian over his person
or property or both.
Judicial rescission oI the adoption shall extinguish all reciprocal rights
and obligations between the adopters and the adopted arising Irom the
relationship oI parent and child. The adopted shall likewise lose the
right to use the surnames oI the adopters and shall resume his surname
prior to the adoption.
The court shall accordingly order the amendment oI the records in the
proper registries. (42a, PD 603)
Adoption
RA 8552
Parental Authority
Art. 209. Pursuant to the natural right and duty oI parents over the
person and property oI their unemancipated children, parental
authority and responsibility shall include the caring Ior and rearing
them Ior civic consciousness and eIIiciency and the development oI
their moral, mental and physical character and well-being. (n)
Art. 213. In case oI separation oI the parents, parental authority shall
be exercised by the parent designated by the Court. The Court shall
take into account all relevant considerations, especially the choice oI
the child over seven years oI age, unless the parent chosen is unIit. (n)
Art. 216. In deIault oI parents or a judicially appointed guardian, the
Iollowing person shall exercise substitute parental authority over the
child in the order indicated:
(1) The surviving grandparent, as provided in Art. 214;
(2) The oldest brother or sister, over twenty-one years oI
age, unless unIit or disqualiIied; and
(3) The child's actual custodian, over twenty-one years oI
age, unless unIit or disqualiIied.
Whenever the appointment or a judicial guardian over the property oI
the child becomes necessary, the same order oI preIerence shall be
observed. (349a, 351a, 354a)
Art. 218. The school, its administrators and teachers, or the individual,
entity or institution engaged in child are shall have special parental
authority and responsibility over the minor child while under their
supervision, instruction or custody.
Authority and responsibility shall apply to all authorized activities
whether inside or outside the premises oI the school, entity or
institution. (349a)
13
Art. 219. Those given the authority and responsibility under the
preceding Article shall be principally and solidarily liable Ior damages
caused by the acts or omissions oI the unemancipated minor. The
parents, judicial guardians or the persons exercising substitute parental
authority over said minor shall be subsidiarily liable.
The respective liabilities oI those reIerred to in the preceding
paragraph shall not apply iI it is proved that they exercised the proper
diligence required under the particular circumstances.
All other cases not covered by this and the preceding articles shall be
governed by the provisions oI the Civil Code on quasi-delicts. (n)
Art. 220. The parents and those exercising parental authority shall have
with the respect to their unemancipated children on wards the
Iollowing rights and duties:
(1) To keep them in their company, to support, educate and
instruct them by right precept and good example, and to
provide Ior their upbringing in keeping with their means;
(2) To give them love and aIIection, advice and counsel,
companionship and understanding;
(3) To provide them with moral and spiritual guidance,
inculcate in them honesty, integrity, selI-discipline, selI-
reliance, industry and thriIt, stimulate their interest in civic
aIIairs, and inspire in them compliance with the duties oI
citizenship;
(4) To Iurnish them with good and wholesome educational
materials, supervise their activities, recreation and
association with others, protect them Irom bad company, and
prevent them Irom acquiring habits detrimental to their
health, studies and morals;
(5) To represent them in all matters aIIecting their interests;
(6) To demand Irom them respect and obedience;
(7) To impose discipline on them as may be required under
the circumstances; and
(8) To perIorm such other duties as are imposed by law upon
parents and guardians. (316a)
Art. 221. Parents and other persons exercising parental authority shall
be civilly liable Ior the injuries and damages caused by the acts or
omissions oI their unemancipated children living in their company and
under their parental authority subject to the appropriate deIenses
provided by law. (2180(2)a and (4)a )
Art. 231. The court in an action Iiled Ior the purpose in a related case
may also suspend parental authority iI the parent or the person
exercising the same:
(1) Treats the child with excessive harshness or cruelty;
(2) Gives the child corrupting orders, counsel or example;
(3) Compels the child to beg; or
(4) Subjects the child or allows him to be subjected to acts oI
lasciviousness.
The grounds enumerated above are deemed to include cases which
have resulted Irom culpable negligence oI the parent or the person
exercising parental authority.
II the degree oI seriousness so warrants, or the welIare oI the child so
demands, the court shall deprive the guilty party oI parental authority
or adopt such other measures as may be proper under the
circumstances.
The suspension or deprivation may be revoked and the parental
authority revived in a case Iiled Ior the purpose or in the same
proceeding iI the court Iinds that the cause thereIor has ceased and will
not be repeated. (33a)
Age of Majority
RA 6809
Art. 234. Emancipation takes place by the attainment oI majority.
Unless otherwise provided, majority commences at the age oI twenty-
one years.
Emancipation also takes place:
(1) By the marriage oI the minor; or
(2) By the recording in the Civil Register oI an agreement in a public
instrument executed by the parent exercising parental authority and the
minor at least eighteen years oI age. Such emancipation shall be
irrevocable.
Art. 236. Emancipation Ior any cause shall terminate parental authority
over the person and property oI the child who shall then be qualiIied
and responsible Ior all acts oI civil liIe. (412a)
Art. 255. This Code shall have retroactive eIIect insoIar as it does not
prejudice or impair vested or acquired rights in accordance with the
Civil Code or other laws.
PRESUMPTION OF DEATH

Art. 390. AIter an absence oI seven years, it being unknown whether
or not the absentee still lives, he shall be presumed dead Ior all
purposes, except Ior those oI succession.
The absentee shall not be presumed dead Ior the purpose oI opening
his succession till aIter an absence oI ten years. II he disappeared aIter
the age oI seventy-Iive years, an absence oI Iive years shall be
suIIicient in order that his succession may be opened. (n)
Art. 391. The Iollowing shall be presumed dead Ior all purposes,
including the division oI the estate among the heirs:
(1) A person on board a vessel lost during a sea voyage, or
an aeroplane which is missing, who has not been heard oI
Ior Iour years since the loss oI the vessel or aeroplane;
(2) A person in the armed Iorces who has taken part in war,
and has been missing Ior Iour years;
14
(3) A person who has been in danger oI death under other
circumstances and his existence has not been known Ior Iour
years. (n)
Property
Art. 415. The Iollowing are immovable property:
(1) Land, buildings, roads and constructions oI all kinds
adhered to the soil;
(2) Trees, plants, and growing Iruits, while they are attached
to the land or Iorm an integral part oI an immovable;
(3) Everything attached to an immovable in a Iixed manner,
in such a way that it cannot be separated thereIrom without
breaking the material or deterioration oI the object;
(4) Statues, relieIs, paintings or other objects Ior use or
ornamentation, placed in buildings or on lands by the owner
oI the immovable in such a manner that it reveals the
intention to attach them permanently to the tenements;
(5) Machinery, receptacles, instruments or implements
intended by the owner oI the tenement Ior an industry or
works which may be carried on in a building or on a piece oI
land, and which tend directly to meet the needs oI the said
industry or works;
(6) Animal houses, pigeon-houses, beehives, Iish ponds or
breeding places oI similar nature, in case their owner has
placed them or preserves them with the intention to have
them permanently attached to the land, and Iorming a
permanent part oI it; the animals in these places are
included;
(7) Fertilizer actually used on a piece oI land;
(8) Mines, quarries, and slag dumps, while the matter thereoI
Iorms part oI the bed, and waters either running or stagnant;
(9) Docks and structures which, though Iloating, are
intended by their nature and object to remain at a Iixed place
on a river, lake, or coast;
(10) Contracts Ior public works, and servitudes and other
real rights over immovable property. (334a)
Art. 416. The Iollowing things are deemed to be personal property:
(1) Those movables susceptible oI appropriation which are
not included in the preceding article;
(2) Real property which by any special provision oI law is
considered as personal property;
(3) Forces oI nature which are brought under control by
science; and
(4) In general, all things which can be transported Irom place
to place without impairment oI the real property to which
they are Iixed. (335a)
Art. 417. The Iollowing are also considered as personal property:
(1) Obligations and actions which have Ior their object
movables or demandable sums; and
(2) Shares oI stock oI agricultural, commercial and industrial
entities, although they may have real estate. (336a)
OWNERSHIP IN GENERAL

Art. 427. Ownership may be exercised over things or rights. (n)
Art. 428. The owner has the right to enjoy and dispose oI a thing,
without other limitations than those established by law.
The owner has also a right oI action against the holder and possessor
oI the thing in order to recover it. (348a)
Art. 429. The owner or lawIul possessor oI a thing has the right to
exclude any person Irom the enjoyment and disposal thereoI. For this
purpose, he may use such Iorce as may be reasonably necessary to
repel or prevent an actual or threatened unlawIul physical invasion or
usurpation oI his property. (n)
Art. 430. Every owner may enclose or Ience his land or tenements by
means oI walls, ditches, live or dead hedges, or by any other means
without detriment to servitudes constituted thereon. (388)
Art. 438. Hidden treasure belongs to the owner oI the land, building, or
other property on which it is Iound.
Nevertheless, when the discovery is made on the property oI another,
or oI the State or any oI its subdivisions, and by chance, one-halI
thereoI shall be allowed to the Iinder. II the Iinder is a trespasser, he
shall not be entitled to any share oI the treasure.
II the things Iound be oI interest to science oI the arts, the State may
acquire them at their just price, which shall be divided in conIormity
with the rule stated. (351a)
Art. 439. By treasure is understood, Ior legal purposes, any hidden and
unknown deposit oI money, jewelry, or other precious objects, the
lawIul ownership oI which does not appear. (352)
Right Of Accession


Art. 440. The ownership oI property gives the right by accession to
everything which is produced thereby, or which is incorporated or
attached thereto, either naturally or artiIicially. (353)

SECTION 1. - Right oI Accession with Respect to
What is Produced by Property

Art. 441. To the owner belongs:
(1) The natural Iruits;
(2) The industrial Iruits;
(3) The civil Iruits. (354)
15
Art. 442. Natural Iruits are the spontaneous products oI the soil, and
the young and other products oI animals.
Industrial Iruits are those produced by lands oI any kind through
cultivation or labor.
Civil Iruits are the rents oI buildings, the price oI leases oI lands and
other property and the amount oI perpetual or liIe annuities or other
similar income. (355a)
Right of Accession with Respect
to Immovable Property
Art. 445. Whatever is built, planted or sown on the land oI another and
the improvements or repairs made thereon, belong to the owner oI the
land, subject to the provisions oI the Iollowing articles. (358)
Art. 447. The owner oI the land who makes thereon, personally or
through another, plantings, constructions or works with the materials
oI another, shall pay their value; and, iI he acted in bad Iaith, he shall
also be obliged to the reparation oI damages. The owner oI the
materials shall have the right to remove them only in case he can do so
without injury to the work constructed, or without the plantings,
constructions or works being destroyed. However, iI the landowner
acted in bad Iaith, the owner oI the materials may remove them in any
event, with a right to be indemniIied Ior damages. (360a)
Art. 448. The owner oI the land on which anything has been built,
sown or planted in good Iaith, shall have the right to appropriate as his
own the works, sowing or planting, aIter payment oI the indemnity
provided Ior in Articles 546 and 548, or to oblige the one who built or
planted to pay the price oI the land, and the one who sowed, the proper
rent. However, the builder or planter cannot be obliged to buy the land
iI its value is considerably more than that oI the building or trees. In
such case, he shall pay reasonable rent, iI the owner oI the land does
not choose to appropriate the building or trees aIter proper indemnity.
The parties shall agree upon the terms oI the lease and in case oI
disagreement, the court shall Iix the terms thereoI. (361a)
Art. 546. Necessarv expenses shall be refunded to everv
possessor, but onlv the possessor in good faith mav retain the thing
until he has been reimbursed therefor.
Useful expenses shall be refunded onlv to the possessor in good faith
with the same right of retention, the person who has defeated him in
the possession having the option of refunding the amount of the
expenses or of paving the increase in value which the thing mav have
acquired bv reason thereof. (453a)
Art. 548. Expenses for pure luxurv or mere pleasure shall
not be refunded to the possessor in good faith, but he mav remove the
ornaments with which he has embellished the principal thing if it
suffers no infurv therebv, and if his successor in the possession does
not prefer to refund the amount expended. (454)
Art. 449. He who builds, plants or sows in bad Iaith on the land oI
another, loses what is built, planted or sown without right to
indemnity. (362)
Art. 450. The owner oI the land on which anything has been built,
planted or sown in bad Iaith may demand the demolition oI the work,
or that the planting or sowing be removed, in order to replace things in
their Iormer condition at the expense oI the person who built, planted
or sowed; or he may compel the builder or planter to pay the price oI
the land, and the sower the proper rent. (363a)
Art. 451. In the cases oI the two preceding articles, the landowner is
entitled to damages Irom the builder, planter or sower. (n)
Art. 452. The builder, planter or sower in bad Iaith is entitled to
reimbursement Ior the necessary expenses oI preservation oI the land.
(n)
Art. 453. II there was bad Iaith, not only on the part oI the person who
built, planted or sowed on the land oI another, but also on the part oI
the owner oI such land, the rights oI one and the other shall be the
same as though both had acted in good Iaith.
It is understood that there is bad Iaith on the part oI the landowner
whenever the act was done with his knowledge and without opposition
on his part. (354a)
Art. 454. When the landowner acted in bad Iaith and the builder,
planter or sower proceeded in good Iaith, the provisions oI article 447
shall apply. (n)
Art. 455. II the materials, plants or seeds belong to a third person who
has not acted in bad Iaith, the owner oI the land shall answer
subsidiarily Ior their value and only in the event that the one who made
use oI them has no property with which to pay.
This provision shall not apply iI the owner makes use oI the right
granted by article 450. II the owner oI the materials, plants or seeds
has been paid by the builder, planter or sower, the latter may demand
Irom the landowner the value oI the materials and labor. (365a)
Art. 457. To the owners oI lands adjoining the banks oI rivers belong
the accretion which they gradually receive Irom the eIIects oI the
current oI the waters. (336)
Art. 459. Whenever the current oI a river, creek or torrent segregates
Irom an estate on its bank a known portion oI land and transIers it to
another estate, the owner oI the land to which the segregated portion
belonged retains the ownership oI it, provided that he removes the
same within two years. (368a)
Art. 460. Trees uprooted and carried away by the current oI the waters
belong to the owner oI the land upon which they may be cast, iI the
owners do not claim them within six months. II such owners claim
them, they shall pay the expenses incurred in gathering them or putting
them in a saIe place. (369a)
Art. 472. II by the will oI their owners two things oI the same or
diIIerent kinds are mixed, or iI the mixture occurs by chance, and in
the latter case the things are not separable without injury, each owner
shall acquire a right proportional to the part belonging to him, bearing
in mind the value oI the things mixed or conIused. (381)
Co-ownership
Art. 484. There is co-ownership whenever the ownership oI an
undivided thing or right belongs to diIIerent persons.
In deIault oI contracts, or oI special provisions, co-ownership shall be
governed by the provisions oI this Title. (392)
16
Art. 485. The share oI the co-owners, in the beneIits as well as in the
charges, shall be proportional to their respective interests. Any
stipulation in a contract to the contrary shall be void.
The portions belonging to the co-owners in the co-ownership shall be
presumed equal, unless the contrary is proved. (393a)
Art. 487. Any one oI the co-owners may bring an action in ejectment.
(n)
Art. 488. Each co-owner shall have a right to compel the other co-
owners to contribute to the expenses oI preservation oI the thing or
right owned in common and to the taxes. Any one oI the latter may
exempt himselI Irom this obligation by renouncing so much oI his
undivided interest as may be equivalent to his share oI the expenses
and taxes. No such waiver shall be made iI it is prejudicial to the co-
ownership. (395a)
Art. 489. Repairs Ior preservation may be made at the will oI one oI
the co-owners, but he must, iI practicable, Iirst notiIy his co-owners oI
the necessity Ior such repairs. Expenses to improve or embellish the
thing shall be decided upon by a majority as determined in Article 492.
(n)
Art. 490. Whenever the diIIerent stories oI a house belong to diIIerent
owners, iI the titles oI ownership do not speciIy the terms under which
they should contribute to the necessary expenses and there exists no
agreement on the subject, the Iollowing rules shall be observed:
(1) The main and party walls, the rooI and the other things
used in common, shall be preserved at the expense oI all the
owners in proportion to the value oI the story belonging to
each;
(2) Each owner shall bear the cost oI maintaining the Iloor oI
his story; the Iloor oI the entrance, Iront door, common yard
and sanitary works common to all, shall be maintained at the
expense oI all the owners pro rata;
(3) The stairs Irom the entrance to the Iirst story shall be
maintained at the expense oI all the owners pro rata, with the
exception oI the owner oI the ground Iloor; the stairs Irom
the Iirst to the second story shall be preserved at the expense
oI all, except the owner oI the ground Iloor and the owner oI
the Iirst story; and so on successively. (396)
Art. 491. None oI the co-owners shall, without the consent oI the
others, make alterations in the thing owned in common, even though
beneIits Ior all would result thereIrom. However, iI the withholding oI
the consent by one or more oI the co-owners is clearly prejudicial to
the common interest, the courts may aIIord adequate relieI. (397a)
Art. 492. For the administration and better enjoyment oI the thing
owned in common, the resolutions oI the majority oI the co-owners
shall be binding.
There shall be no majority unless the resolution is approved by the co-
owners who represent the controlling interest in the object oI the co-
ownership.
Should there be no majority, or should the resolution oI the majority be
seriously prejudicial to those interested in the property owned in
common, the court, at the instance oI an interested party, shall order
such measures as it may deem proper, including the appointment oI an
administrator.
Whenever a part oI the thing belongs exclusively to one oI the co-
owners, and the remainder is owned in common, the preceding
provision shall apply only to the part owned in common. (398)
Art. 493. Each co-owner shall have the Iull ownership oI his part and
oI the Iruits and beneIits pertaining thereto, and he may thereIore
alienate, assign or mortgage it, and even substitute another person in
its enjoyment, except when personal rights are involved. But the eIIect
oI the alienation or the mortgage, with respect to the co-owners, shall
be limited to the portion which may be alloted to him in the division
upon the termination oI the co-ownership. (399)
Art. 494. No co-owner shall be obliged to remain in the co-ownership.
Each co-owner may demand at any time the partition oI the thing
owned in common, insoIar as his share is concerned.
Nevertheless, an agreement to keep the thing undivided Ior a certain
period oI time, not exceeding ten years, shall be valid. This term may
be extended by a new agreement.
A donor or testator may prohibit partition Ior a period which shall not
exceed twenty years.
Neither shall there be any partition when it is prohibited by law.
No prescription shall run in Iavor oI a co-owner or co-heir against his
co-owners or co-heirs so long as he expressly or impliedly recognizes
the co-ownership. (400a)
Art. 495. Notwithstanding the provisions oI the preceding article, the
co-owners cannot demand a physical division oI the thing owned in
common, when to do so would render it unserviceable Ior the use Ior
which it is intended. But the co-ownership may be terminated in
accordance with Article 498. (401a)
Art. 496. Partition may be made by agreement between the parties or
by judicial proceedings. Partition shall be governed by the Rules oI
Court insoIar as they are consistent with this Code. (402)
Art. 497. The creditors or assignees oI the co-owners may take part in
the division oI the thing owned in common and object to its being
eIIected without their concurrence. But they cannot impugn any
partition already executed, unless there has been Iraud, or in case it
was made notwithstanding a Iormal opposition presented to prevent it,
without prejudice to the right oI the debtor or assignor to maintain its
validity. (403)
Art. 498. Whenever the thing is essentially indivisible and the co-
owners cannot agree that it be allotted to one oI them who shall
indemniIy the others, it shall be sold and its proceeds distributed. (404)
Art. 501. Every co-owner shall, aIter partition, be liable Ior deIects oI
title and quality oI the portion assigned to each oI the other co-owners.
(n)
Possession
Art. 523. Possession is the holding oI a thing or the enjoyment oI a
right. (430a)
17
Art. 526. He is deemed a possessor in good Iaith who is not aware that
there exists in his title or mode oI acquisition any Ilaw which
invalidates it.
He is deemed a possessor in bad Iaith who possesses in any case
contrary to the Ioregoing.
Mistake upon a doubtIul or diIIicult question oI law may be the basis
oI good Iaith. (433a)
Art. 528. Possession acquired in good Iaith does not lose this character
except in the case and Irom the moment Iacts exist which show that the
possessor is not unaware that he possesses the thing improperly or
wrongIully. (435a)
Art. 531. Possession is acquired by the material occupation oI a thing
or the exercise oI a right, or by the Iact that it is subject to the action oI
our will, or by the proper acts and legal Iormalities established Ior
acquiring such right. (438a)
Art. 533. The possession oI hereditary property is deemed transmitted
to the heir without interruption and Irom the moment oI the death oI
the decedent, in case the inheritance is accepted.
One who validly renounces an inheritance is deemed never to have
possessed the same.
Art. 534. On who succeeds by hereditary title shall not suIIer the
consequences oI the wrongIul possession oI the decedent, iI it is not
shown that he was aware oI the Ilaws aIIecting it; but the eIIects oI
possession in good Iaith shall not beneIit him except Irom the date oI
the death oI the decedent. (442)
Art. 536. In no case may possession be acquired through Iorce or
intimidation as long as there is a possessor who objects thereto. He
who believes that he has an action or a right to deprive another oI the
holding oI a thing, must invoke the aid oI the competent court, iI the
holder should reIuse to deliver the thing. (441a)
Art. 537. Acts merely tolerated, and those executed clandestinely and
without the knowledge oI the possessor oI a thing, or by violence, do
not aIIect possession. (444)
Art. 538. Possession as a Iact cannot be recognized at the same time in
two diIIerent personalities except in the cases oI co-possession. Should
a question arise regarding the Iact oI possession, the present possessor
shall be preIerred; iI there are two possessors, the one longer in
possession; iI the dates oI the possession are the same, the one who
presents a title; and iI all these conditions are equal, the thing shall be
placed in judicial deposit pending determination oI its possession or
ownership through proper proceedings
Art. 545. II at the time the good Iaith ceases, there should be any
natural or industrial Iruits, the possessor shall have a right to a part oI
the expenses oI cultivation, and to a part oI the net harvest, both in
proportion to the time oI the possession.
The charges shall be divided on the same basis by the two possessors.
The owner oI the thing may, should he so desire, give the possessor in
good Iaith the right to Iinish the cultivation and gathering oI the
growing Iruits, as an indemnity Ior his part oI the expenses oI
cultivation and the net proceeds; the possessor in good Iaith who Ior
any reason whatever should reIuse to accept this concession, shall lose
the right to be indemniIied in any other manner. (452a)
Art. 546. Necessary expenses shall be reIunded to every possessor; but
only the possessor in good Iaith may retain the thing until he has been
reimbursed thereIor.
UseIul expenses shall be reIunded only to the possessor in good Iaith
with the same right oI retention, the person who has deIeated him in
the possession having the option oI reIunding the amount oI the
expenses or oI paying the increase in value which the thing may have
acquired by reason thereoI. (453a)
Art. 547. II the useIul improvements can be removed without damage
to the principal thing, the possessor in good Iaith may remove them,
unless the person who recovers the possession exercises the option
under paragraph 2 oI the preceding article. (n)
Art. 548. Expenses Ior pure luxury or mere pleasure shall not be
reIunded to the possessor in good Iaith; but he may remove the
ornaments with which he has embellished the principal thing iI it
suIIers no injury thereby, and iI his successor in the possession does
not preIer to reIund the amount expended. (454)
Art. 549. The possessor in bad Iaith shall reimburse the Iruits received
and those which the legitimate possessor could have received, and
shall have a right only to the expenses mentioned in paragraph 1 oI
Article 546 and in Article 443. The expenses incurred in improvements
Ior pure luxury or mere pleasure shall not be reIunded to the possessor
in bad Iaith, but he may remove the objects Ior which such expenses
have been incurred, provided that the thing suIIers no injury thereby,
and that the lawIul possessor does not preIer to retain them by paying
the value they may have at the time he enters into possession. (445a)
Art. 555. A possessor may lose his possession:
(1) By the abandonment oI the thing;
(2) By an assignment made to another either by onerous or
gratuitous title;
(3) By the destruction or total loss oI the thing, or because it
goes out oI commerce;
(4) By the possession oI another, subject to the provisions oI
Article 537, iI the new possession has lasted longer than one
year. But the real right oI possession is not lost till aIter the
lapse oI ten years. (460a)
18
Art. 537. Acts merelv tolerated, and those executed
clandestinelv and without the knowledge of the possessor of a thing, or
bv violence, do not affect possession. (444)
Art. 556. The possession oI movables is not deemed lost so long as
they remain under the control oI the possessor, even though Ior the
time being he may not know their whereabouts. (461)
Art. 559. The possession oI movable property acquired in good Iaith is
equivalent to a title. Nevertheless, one who has lost any movable or
has been unlawIully deprived thereoI may recover it Irom the person in
possession oI the same.
II the possessor oI a movable lost or which the owner has been
unlawIully deprived, has acquired it in good Iaith at a public sale, the
owner cannot obtain its return without reimbursing the price paid
thereIor. (464a)
Usufruct
Art. 562. UsuIruct gives a right to enjoy the property oI another with
the obligation oI preserving its Iorm and substance, unless the title
constituting it or the law otherwise provides. (467)
Art. 563. UsuIruct is constituted by law, by the will oI private persons
expressed in acts inter vivos or in a last will and testament, and by
prescription. (468)
Art. 564. UsuIruct may be constituted on the whole or a part oI the
Iruits oI the thing, in Iavor oI one more persons, simultaneously or
successively, and in every case Irom or to a certain day, purely or
conditionally. It may also be constituted on a right, provided it is not
strictly personal or intransmissible. (469)
Art. 572. The usuIructuary may personally enjoy the thing in usuIruct,
lease it to another, or alienate his right oI usuIruct, even by a gratuitous
title; but all the contracts he may enter into as such usuIructuary shall
terminate upon the expiration oI the usuIruct, saving leases oI rural
lands, which shall be considered as subsisting during the agricultural
year. (480)
Art. 573. Whenever the usuIruct includes things which, without being
consumed, gradually deteriorate through wear and tear, the
usuIructuary shall have the right to make use thereoI in accordance
with the purpose Ior which they are intended, and shall not be obliged
to return them at the termination oI the usuIruct except in their
condition at that time; but he shall be obliged to indemniIy the owner
Ior any deterioration they may have suIIered by reason oI his Iraud or
negligence. (481)
Art. 574. Whenever the usuIruct includes things which cannot be used
without being consumed, the usuIructuary shall have the right to make
use oI them under the obligation oI paying their appraised value at the
termination oI the usuIruct, iI they were appraised when delivered. In
case they were not appraised, he shall have the right to return at the
same quantity and quality, or pay their current price at the time the
usuIruct ceases. (482)
Art. 579. The usuIructuary may make on the property held in usuIruct
such useIul improvements or expenses Ior mere pleasure as he may
deem proper, provided he does not alter its Iorm or substance; but he
shall have no right to be indemniIied thereIor. He may, however,
remove such improvements, should it be possible to do so without
damage to the property. (487)
Art. 580. The usuIructuary may set oII the improvements he may have
made on the property against any damage to the same. (488)
Art. 583. The usuIructuary, beIore entering upon the enjoyment oI the
property, is obliged:
(1) To make, aIter notice to the owner or his legitimate
representative, an inventory oI all the property, which shall
contain an appraisal oI the movables and a description oI the
condition oI the immovables;
(2) To give security, binding himselI to IulIill the obligations
imposed upon him in accordance with this Chapter.
Art. 584. The provisions oI No. 2 oI the preceding article shall not
apply to the donor who has reserved the usuIruct oI the property
donated, or to the parents who are usuIructuaries oI their children's
property, except when the parents contract a second marriage. (492a)
Art. 603. UsuIruct is extinguished:
(1) By the death oI the usuIructuary, unless a contrary
intention clearly appears;
(2) By the expiration oI the period Ior which it was
constituted, or by the IulIillment oI any resolutory condition
provided in the title creating the usuIruct; (3) By merger oI
the usuIruct and ownership in the same person;
(4) By renunciation oI the usuIructuary; (5) By the total loss
oI the thing in usuIruct;
(6) By the termination oI the right oI the person constituting
the usuIruct;
(7) By prescription.
EXTINGUISHMENT OF USUFRUCT

Art. 603. UsuIruct is extinguished:
(1) By the death oI the usuIructuary, unless a contrary
intention clearly appears;
(2) By the expiration oI the period Ior which it was
constituted, or by the IulIillment oI any resolutory condition
provided in the title creating the usuIruct;
(3) By merger oI the usuIruct and ownership in the same
person;
(4) By renunciation oI the usuIructuary;
(5) By the total loss oI the thing in usuIruct;
(6) By the termination oI the right oI the person constituting
the usuIruct;
(7) By prescription. (513a)
Art. 606. A usuIruct granted Ior the time that may elapse beIore a third
person attains a certain age, shall subsist Ior the number oI years
speciIied, even iI the third person should die beIore the period expires,
unless such usuIruct has been expressly granted only in consideration
oI the existence oI such person. (516)
Art. 607. II the usuIruct is constituted on immovable property oI which
a building Iorms part, and the latter should be destroyed in any manner
19
whatsoever, the usuIructuary shall have a right to make use oI the land
and the materials.
The same rule shall be applied iI the usuIruct is constituted on a
building only and the same should be destroyed. But in such a case, iI
the owner should wish to construct another building, he shall have a
right to occupy the land and to make use oI the materials, being
obliged to pay to the usuIructuary, during the continuance oI the
usuIruct, the interest upon the sum equivalent to the value oI the land
and oI the materials. (517)
Art. 611. A usuIruct constituted in Iavor oI several persons living at
the time oI its constitution shall not be extinguished until death oI the
last survivor. (521)
Easement and Servitude
Art. 613. An easement or servitude is an encumbrance imposed upon
an immovable Ior the beneIit oI another immovable belonging to a
diIIerent owner.
The immovable in Iavor oI which the easement is established is called
the dominant estate; that which is subject thereto, the servient estate.
Art. 615. Easements may be continuous or discontinuous, apparent or
nonapparent.
Continuous easements are those the use oI which is or may be
incessant, without the intervention oI any act oI man.
Discontinuous easements are those which are used at intervals and
depend upon the acts oI man.
Apparent easements are those which are made known and are
continually kept in view by external signs that reveal the use and
enjoyment oI the same.
Nonapparent easements are those which show no external indication oI
their existence. (532)
Art. 616. Easements are also positive or negative.
A positive easement is one which imposes upon the owner oI the
servient estate the obligation oI allowing something to be done or oI
doing it himselI, and a negative easement, that which prohibits the
owner oI the servient estate Irom doing something which he could
lawIully do iI the easement did not exist.
Art. 617. Easements are inseparable Irom the estate to which they
actively or passively belong. (534)
Art. 619. Easements are established either by law or by the will oI the
owners. The Iormer are called legal and the latter voluntary easements.
Modes of Acquiring Easements
Art. 620. Continuous and apparent easements are acquired either by
virtue oI a title or by prescription oI ten years. (537a)
Art. 621. In order to acquire by prescription the easements reIerred to
in the preceding article, the time oI possession shall be computed thus:
in positive easements, Irom the day on which the owner oI the
dominant estate, or the person who may have made use oI the
easement, commenced to exercise it upon the servient estate; and in
negative easements, Irom the day on which the owner oI the dominant
estate Iorbade, by an instrument acknowledged beIore a notary public,
the owner oI the servient estate, Irom executing an act which would be
lawIul without the easement. (538a)
Art. 622. Continuous nonapparent easements, and discontinuous ones,
whether apparent or not, may be acquired only by virtue oI a title.
(539)
Art. 624. The existence oI an apparent sign oI easement between two
estates, established or maintained by the owner oI both, shall be
considered, should either oI them be alienated, as a title in order that
the easement may continue actively and passively, unless, at the time
the ownership oI the two estates is divided, the contrary should be
provided in the title oI conveyance oI either oI them, or the sign
aIoresaid should be removed beIore the execution oI the deed. This
provision shall also apply in case oI the division oI a thing owned in
common by two or more persons.
Art. 626. The owner oI the dominant estate cannot use the easement
except Ior the beneIit oI the immovable originally contemplated.
Neither can he exercise the easement in any other manner than that
previously established. (n)
Art. 631. Easements are extinguished:
(1) By merger in the same person oI the ownership oI the
dominant and servient estates;
(2) By nonuser Ior ten years; with respect to discontinuous
easements, this period shall be computed Irom the day on
which they ceased to be used; and, with respect to
continuous easements, Irom the day on which an act
contrary to the same took place;
(3) When either or both oI the estates Iall into such condition
that the easement cannot be used; but it shall revive iI the
subsequent condition oI the estates or either oI them should
again permit its use, unless when the use becomes possible,
suIIicient time Ior prescription has elapsed, in accordance
with the provisions oI the preceding number;
(4) By the expiration oI the term or the IulIillment oI the
condition, iI the easement is temporary or conditional;
(5) By the renunciation oI the owner oI the dominant estate;
(6) By the redemption agreed upon between the owners oI
the dominant and servient estates. (546a)
Art. 649. The owner, or any person who by virtue oI a real right may
cultivate or use any immovable, which is surrounded by other
immovables pertaining to other persons and without adequate outlet to
a public highway, is entitled to demand a right oI way through the
neighboring estates, aIter payment oI the proper indemnity.
20
Should this easement be established in such a manner that its use may
be continuous Ior all the needs oI the dominant estate, establishing a
permanent passage, the indemnity shall consist oI the value oI the land
occupied and the amount oI the damage caused to the servient estate.
In case the right oI way is limited to the necessary passage Ior the
cultivation oI the estate surrounded by others and Ior the gathering oI
its crops through the servient estate without a permanent way, the
indemnity shall consist in the payment oI the damage caused by such
encumbrance.
This easement is not compulsory iI the isolation oI the immovable is
due to the proprietor's own acts. (564a)
Art. 650. The easement oI right oI way shall be established at the point
least prejudicial to the servient estate, and, insoIar as consistent with
this rule, where the distance Irom the dominant estate to a public
highway may be the shortest. (565)
Art. 651. The width oI the easement oI right oI way shall be that which
is suIIicient Ior the needs oI the dominant estate, and may accordingly
be changed Irom time to time. (566a)
Art. 652. Whenever a piece oI land acquired by sale, exchange or
partition, is surrounded by other estates oI the vendor, exchanger, or
co-owner, he shall be obliged to grant a right oI way without
indemnity.
In case oI a simple donation, the donor shall be indemniIied by the
donee Ior the establishment oI the right oI way. (567a)
Art. 653. In the case oI the preceding article, iI it is the land oI the
grantor that becomes isolated, he may demand a right oI way aIter
paying a indemnity. However, the donor shall not be liable Ior
indemnity. (n)
Art. 668. The period oI prescription Ior the acquisition oI an easement
oI light and view shall be counted:
(1) From the time oI the opening oI the window, iI it is
through a party wall; or
(2) From the time oI the Iormal prohibition upon the
proprietor oI the adjoining land or tenement, iI the window
is through a wall on the dominant estate. (n)
Art. 669. When the distances in Article 670 are not observed, the
owner oI a wall which is not party wall, adjoining a tenement or piece
oI land belonging to another, can make in it openings to admit light at
the height oI the ceiling joints or immediately under the ceiling, and oI
the size oI thirty centimeters square, and, in every case, with an iron
grating imbedded in the wall and with a wire screen.
Nevertheless, the owner oI the tenement or property adjoining the wall
in which the openings are made can close them should he acquire part-
ownership thereoI, iI there be no stipulation to the contrary.
He can also obstruct them by constructing a building on his land or by
raising a wall thereon contiguous to that having such openings, unless
an easement oI light has been acquired. (581a)
Art. 670. No windows, apertures, balconies, or other similar
projections which aIIord a direct view upon or towards an adjoining
land or tenement can be made, without leaving a distance oI two
meters between the wall in which they are made and such contiguous
property.
Neither can side or oblique views upon or towards such conterminous
property be had, unless there be a distance oI sixty centimeters.
The nonobservance oI these distances does not give rise to
prescription. (582a)
Nuisance
Art. 694. A nuisance is any act, omission, establishment, business,
condition oI property, or anything else which:
(1) Injures or endangers the health or saIety oI others; or
(2) Annoys or oIIends the senses; or
(3) Shocks, deIies or disregards decency or morality; or
(4) Obstructs or interIeres with the Iree passage oI any
public highway or street, or any body oI water; or
(5) Hinders or impairs the use oI property.
Art. 695. Nuisance is either public or private. A public nuisance aIIects
a community or neighborhood or any considerable number oI persons,
although the extent oI the annoyance, danger or damage upon
individuals may be unequal. A private nuisance is one that is not
included in the Ioregoing deIinition.
Art. 697. The abatement oI a nuisance does not preclude the right oI
any person injured to recover damages Ior its past existence.
Art. 701. II a civil action is brought by reason oI the maintenance oI a
public nuisance, such action shall be commenced by the city or
municipal mayor.
Different mode of Acquiring Ownership
Art. 712. Ownership is acquired by occupation and by intellectual
creation.
Ownership and other real rights over property are acquired and
transmitted by law, by donation, by estate and intestate succession, and
in consequence oI certain contracts, by tradition.
They may also be acquired by means oI prescription. (609a)
OCCUPATION
Art. 713. Things appropriable by nature which are without an owner,
such as animals that are the object oI hunting and Iishing, hidden
treasure and abandoned movables, are acquired by occupation. (610)
Art. 719. Whoever Iinds a movable, which is not treasure, must return
it to its previous possessor. II the latter is unknown, the Iinder shall
21
immediately deposit it with the mayor oI the city or municipality
where the Iinding has taken place.
The Iinding shall be publicly announced by the mayor Ior two
consecutive weeks in the way he deems best.
II the movable cannot be kept without deterioration, or without
expenses which considerably diminish its value, it shall be sold at
public auction eight days aIter the publication.
Six months Irom the publication having elapsed without the owner
having appeared, the thing Iound, or its value, shall be awarded to the
Iinder. The Iinder and the owner shall be obliged, as the case may be,
to reimburse the expenses. (615a)
Donation
Art. 725. Donation is an act oI liberality whereby a person disposes
gratuitously oI a thing or right in Iavor oI another, who accepts it.
(618a)
Art. 726. When a person gives to another a thing or right on account oI
the latter's merits or oI the services rendered by him to the donor,
provided they do not constitute a demandable debt, or when the giIt
imposes upon the donee a burden which is less than the value oI the
thing given, there is also a donation. (619)
Art. 728. Donations which are to take eIIect upon the death oI the
donor partake oI the nature oI testamentary provisions, and shall be
governed by the rules established in the Title on Succession. (620)
Art. 731. When a person donates something, subject to the resolutory
condition oI the donor's survival, there is a donation inter vivos. (n)
Art. 734. The donation is perIected Irom the moment the donor knows
oI the acceptance by the donee.
Art. 737. The donor's capacity shall be determined as oI the time oI the
making oI the donation. (n)
Art. 739. The Iollowing donations shall be void:
(1) Those made between persons who were guilty oI
adultery or concubinage at the time oI the donation;
(2) Those made between persons Iound guilty oI the same
criminal oIIense, in consideration thereoI;
(3) Those made to a public oIIicer or his wiIe, descedants
and ascendants, by reason oI his oIIice.
In the case reIerred to in No. 1, the action Ior declaration oI nullity
may be brought by the spouse oI the donor or donee; and the guilt oI
the donor and donee may be proved by preponderance oI evidence in
the same action. (n)
Art. 746. Acceptance must be made during the liIetime oI the donor
and oI the donee. (n)
Art. 748. The donation oI a movable may be made orally or in writing.
An oral donation requires the simultaneous delivery oI the thing or oI
the document representing the right donated.
II the value oI the personal property donated exceeds Iive thousand
pesos, the donation and the acceptance shall be made in writing,
otherwise, the donation shall be void. (632a)
Art. 749. In order that the donation oI an immovable may be valid, it
must be made in a public document, speciIying therein the property
donated and the value oI the charges which the donee must satisIy.
The acceptance may be made in the same deed oI donation or in a
separate public document, but it shall not take eIIect unless it is done
during the liIetime oI the donor.
II the acceptance is made in a separate instrument, the donor shall be
notiIied thereoI in an authentic Iorm, and this step shall be noted in
both instruments.
Effect Of Donations And Limitations Thereon
Art. 750. The donations may comprehend all the present property oI
the donor, or part thereoI, provided he reserves, in Iull ownership or in
usuIruct, suIIicient means Ior the support oI himselI, and oI all
relatives who, at the time oI the acceptance oI the donation, are by law
entitled to be supported by the donor. Without such reservation, the
donation shall be reduced in petition oI any person aIIected. (634a)
Art. 751. Donations cannot comprehend Iuture property.
By Iuture property is understood anything which the donor cannot
dispose oI at the time oI the donation. (635)
Art. 755. The right to dispose oI some oI the things donated, or oI
some amount which shall be a charge thereon, may be reserved by the
donor; but iI he should die without having made use oI this right, the
property or amount reserved shall belong to the donee. (639)
Revocation And Reduction Of Donations
Art. 760. Every donation inter vivos, made by a person having no
children or descendants, legitimate or legitimated by subsequent
marriage, or illegitimate, may be revoked or reduced as provided in the
next article, by the happening oI any oI these events:
(1) II the donor, aIter the donation, should have legitimate or
legitimated or illegitimate children, even though they be
posthumous;
(2) II the child oI the donor, whom the latter believed to be
dead when he made the donation, should turn out to be
living;
(3) II the donor subsequently adopt a minor child. (644a)
Art. 761. In the cases reIerred to in the preceding article, the donation
shall be revoked or reduced insoIar as it exceeds the portion that may
be Ireely disposed oI by will, taking into account the whole estate oI
the donor at the time oI the birth, appearance or adoption oI a child. (n)
22
Art. 764. The donation shall be revoked at the instance oI the donor,
when the donee Iails to comply with any oI the conditions which the
Iormer imposed upon the latter.
In this case, the property donated shall be returned to the donor, the
alienations made by the donee and the mortgages imposed thereon by
him being void, with the limitations established, with regard to third
persons, by the Mortgage Law and the Land Registration Laws.
This action shall prescribe aIter Iour years Irom the noncompliance
with the condition, may be transmitted to the heirs oI the donor, and
may be exercised against the donee's heirs. (647a)
Art. 765. The donation may also be revoked at the instance oI the
donor, by reason oI ingratitude in the Iollowing cases:
(1) II the donee should commit some oIIense against the
person, the honor or the property oI the donor, or oI his wiIe
or children under his parental authority;
(2) II the donee imputes to the donor any criminal oIIense,
or any act involving moral turpitude, even though he should
prove it, unless the crime or the act has been committed
against the donee himselI, his wiIe or children under his
authority;
(3) II he unduly reIuses him support when the donee is
legally or morally bound to give support to the donor. (648a)
Succession
Art. 774. Succession is a mode oI acquisition by virtue oI which the
property, rights and obligations to the extent oI the value oI the
inheritance, oI a person are transmitted through his death to another or
others either by his will or by operation oI law. (n)
Art. 775. In this Title, "decedent" is the general term applied to the
person whose property is transmitted through succession, whether or
not he leIt a will. II he leIt a will, he is also called the testator. (n)
Art. 777. The rights to the succession are transmitted Irom the moment
oI the death oI the decedent. (657a)
Art. 793. Property acquired aIter the making oI a will shall only pass
thereby, as iI the testator had possessed it at the time oI making the
will, should it expressly appear by the will that such was his intention.
(n)
Art. 799. To be oI sound mind, it is not necessary that the testator be in
Iull possession oI all his reasoning Iaculties, or that his mind be wholly
unbroken, unimpaired, or unshattered by disease, injury or other cause.
It shall be suIIicient iI the testator was able at the time oI making the
will to know the nature oI the estate to be disposed oI, the proper
objects oI his bounty, and the character oI the testamentary act.
Art. 804. Every will must be in writing and executed in a language or
dialect known to the testator. (n)
Art. 805. Every will, other than a holographic will, must be subscribed
at the end thereoI by the testator himselI or by the testator's name
written by some other person in his presence, and by his express
direction, and attested and subscribed by three or more credible
witnesses in the presence oI the testator and oI one another.
The testator or the person requested by him to write his name and the
instrumental witnesses oI the will, shall also sign, as aIoresaid, each
and every page thereoI, except the last, on the leIt margin, and all the
pages shall be numbered correlatively in letters placed on the upper
part oI each page.
The attestation shall state the number oI pages used upon which the
will is written, and the Iact that the testator signed the will and every
page thereoI, or caused some other person to write his name, under his
express direction, in the presence oI the instrumental witnesses, and
that the latter witnessed and signed the will and all the pages thereoI in
the presence oI the testator and oI one another.
II the attestation clause is in a language not known to the witnesses, it
shall be interpreted to them. (n)
Art. 806. Every will must be acknowledged beIore a notary public by
the testator and the witnesses. The notary public shall not be required
to retain a copy oI the will, or Iile another with the OIIice oI the Clerk
oI Court. (n)
Art. 807. II the testator be deaI, or a deaI-mute, he must personally
read the will, iI able to do so; otherwise, he shall designate two persons
to read it and communicate to him, in some practicable manner, the
contents thereoI. (n)
Art. 808. II the testator is blind, the will shall be read to him twice;
once, by one oI the subscribing witnesses, and again, by the notary
public beIore whom the will is acknowledged. (n)
Art. 809. In the absence oI bad Iaith, Iorgery, or Iraud, or undue and
improper pressure and inIluence, deIects and imperIections in the Iorm
oI attestation or in the language used therein shall not render the will
invalid iI it is proved that the will was in Iact executed and attested in
substantial compliance with all the requirements oI Article 805. (n)
Art. 810. A person may execute a holographic will which must be
entirely written, dated, and signed by the hand oI the testator himselI.
It is subject to no other Iorm, and may be made in or out oI the
Philippines, and need not be witnessed. (678, 688a)
Art. 811. In the probate oI a holographic will, it shall be necessary that
at least one witness who knows the handwriting and signature oI the
testator explicitly declare that the will and the signature are in the
handwriting oI the testator. II the will is contested, at least three oI
such witnesses shall be required.
In the absence oI any competent witness reIerred to in the preceding
paragraph, and iI the court deem it necessary, expert testimony may be
resorted to. (619a)
Art. 812. In holographic wills, the dispositions oI the testator written
below his signature must be dated and signed by him in order to make
them valid as testamentary dispositions. (n)
Art. 813. When a number oI dispositions appearing in a holographic
will are signed without being dated, and the last disposition has a
23
signature and a date, such date validates the dispositions preceding it,
whatever be the time oI prior dispositions. (n)
Art. 814. In case oI any insertion, cancellation, erasure or alteration in
a holographic will, the testator must authenticate the same by his Iull
signature. (n)
Art. 815. When a Filipino is in a Ioreign country, he is authorized to
make a will in any oI the Iorms established by the law oI the country in
which he may be. Such will may be probated in the Philippines. (n)
Art. 816. The will oI an alien who is abroad produces eIIect in the
Philippines iI made with the Iormalities prescribed by the law oI the
place in which he resides, or according to the Iormalities observed in
his country, or in conIormity with those which this Code prescribes.
(n)
Art. 817. A will made in the Philippines by a citizen or subject oI
another country, which is executed in accordance with the law oI the
country oI which he is a citizen or subject, and which might be proved
and allowed by the law oI his own country, shall have the same eIIect
as iI executed according to the laws oI the Philippines. (n)
Art. 818. Two or more persons cannot make a will jointly, or in the
same instrument, either Ior their reciprocal beneIit or Ior the beneIit oI
a third person. (669)
Art. 819. Wills, prohibited by the preceding article, executed by
Filipinos in a Ioreign country shall not be valid in the Philippines, even
though authorized by the laws oI the country where they may have
been executed.
Art. 830. No will shall be revoked except in the Iollowing cases:
(1) By implication oI law; or
(2) By some will, codicil, or other writing executed as
provided in case oI wills; or
(3) By burning, tearing, cancelling, or obliterating the will
with the intention oI revoking it, by the testator himselI, or
by some other person in his presence, and by his express
direction. II burned, torn, cancelled, or obliterated by some
other person, without the express direction oI the testator,
the will may still be established, and the estate distributed in
accordance therewith, iI its contents, and due execution, and
the Iact oI its unauthorized destruction, cancellation, or
obliteration are established according to the Rules oI Court.
(n)
Art. 831. Subsequent wills which do not revoke the previous ones in an
express manner, annul only such dispositions in the prior wills as are
inconsistent with or contrary to those contained in the latter wills. (n)
Art. 832. A revocation made in a subsequent will shall take eIIect,
even iI the new will should become inoperative by reason oI the
incapacity oI the heirs, devisees or legatees designated therein, or by
their renunciation. (740a)
Art. 833. A revocation oI a will based on a Ialse cause or an illegal
cause is null and void. (n)
Art. 834. The recognition oI an illegitimate child does not lose its legal
eIIect, even though the will wherein it was made should be revoked.
(714)
Art. 838. No will shall pass either real or personal property unless it is
proved and allowed in accordance with the Rules oI Court.
The testator himselI may, during his liIetime, petition the court having
jurisdiction Ior the allowance oI his will. In such case, the pertinent
provisions oI the Rules oI Court Ior the allowance oI wills aIter the
testator's a death shall govern.
The Supreme Court shall Iormulate such additional Rules oI Court as
may be necessary Ior the allowance oI wills on petition oI the testator.
Subject to the right oI appeal, the allowance oI the will, either during
the liIetime oI the testator or aIter his death, shall be conclusive as to
its due execution. (n)
Art. 839. The will shall be disallowed in any oI the Iollowing cases:
(1) II the Iormalities required by law have not been complied
with;
(2) II the testator was insane, or otherwise mentally
incapable oI making a will, at the time oI its execution;
(3) II it was executed through Iorce or under duress, or the
inIluence oI Iear, or threats;
(4) II it was procured by undue and improper pressure and
inIluence, on the part oI the beneIiciary or oI some other
person;
(5) II the signature oI the testator was procured by Iraud;
(6) II the testator acted by mistake or did not intend that the
instrument he signed should be his will at the time oI
aIIixing his signature thereto. (n)
Art. 846. Heirs instituted without designation oI shares shall inherit in
equal parts. (765)
Art. 854. The preterition or omission oI one, some, or all oI the
compulsory heirs in the direct line, whether living at the time oI the
execution oI the will or born aIter the death oI the testator, shall annul
the institution oI heir; but the devises and legacies shall be valid
insoIar as they are not inoIIicious.
II the omitted compulsory heirs should die beIore the testator, the
institution shall be eIIectual, without prejudice to the right oI
representation. (814a)
Art. 856. A voluntary heir who dies beIore the testator transmits
nothing to his heirs.
Art. 857. Substitution is the appointment oI another heir so that he may
enter into the inheritance in deIault oI the heir originally instituted. (n)
Art. 859. The testator may designate one or more persons to substitute
the heir or heirs instituted in case such heir or heirs should die beIore
24
him, or should not wish, or should be incapacitated to accept the
inheritance.
Art. 863. A Iideicommissary substitution by virtue oI which the
Iiduciary or Iirst heir instituted is entrusted with the obligation to
preserve and to transmit to a second heir the whole or part oI the
inheritance, shall be valid and shall take eIIect, provided such
substitution does not go beyond one degree Irom the heir originally
instituted, and provided Iurther, that the Iiduciary or Iirst heir and the
second heir are living at the time oI the death oI the testator. (781a)
Art. 864. A Iideicommissary substitution can never burden the
legitime. (782a)
Art. 865. Every Iideicommissary substitution must be expressly made
in order that it may be valid.
The Iiduciary shall be obliged to deliver the inheritance to the second
heir, without other deductions than those which arise Irom legitimate
expenses, credits and improvements, save in the case where the testator
has provided otherwise. (783)
Art. 866. The second heir shall acquire a right to the succession Irom
the time oI the testator's death, even though he should die beIore the
Iiduciary. The right oI the second heir shall pass to his heirs. (784)
Art. 871. The institution oI an heir may be made conditionally, or Ior a
certain purpose or cause. (790a)
Art. 874. An absolute condition not to contract a Iirst 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.
Nevertheless, the right oI usuIruct, or an allowance or some personal
prestation may be devised or bequeathed to any person Ior the time
during which he or she should remain unmarried or in widowhood.
(793a)
Art. 882. The statement oI the object oI the institution, or the
application oI the property leIt 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 leIt in this manner may be claimed at once
provided that the instituted heir or his heirs give security Ior
compliance with the wishes oI the testator and Ior the return oI
anything he or they may receive, together with its Iruits and interests,
iI he or they should disregard this obligation. (797a)
Art. 886. Legitime is that part oI the testator's property which he
cannot dispose oI because the law has reserved it Ior certain heirs who
are, thereIore, called compulsory heirs. (806)
Art. 887. The Iollowing are compulsory heirs:
(1) Legitimate children and descendants, with respect to
their legitimate parents and ascendants;
(2) In deIault oI the Ioregoing, 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 Iiction;
(5) Other illegitimate children reIerred 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 oI illegitimate children, their Iiliation must be duly proved.
The Iather or mother oI illegitimate children oI the three classes
mentioned, shall inherit Irom them in the manner and to the extent
established by this Code. (807a)
Art. 888. The legitime oI legitimate children and descendants consists
oI one-halI oI the hereditary estate oI the Iather and oI the mother.
The latter may Ireely dispose oI the remaining halI, subject to the
rights oI illegitimate children and oI the surviving spouse as
hereinaIter provided. (808a)
Art. 891. The ascendant who inherits Irom his descendant any property
which the latter may have acquired by gratuitous title Irom another
ascendant, or a brother or sister, is obliged to reserve such property as
he may have acquired by operation oI law Ior the beneIit oI relatives
who are within the third degree and who belong to the line Irom which
said property came. (871)
Art. 892. II only one legitimate child or descendant oI the deceased
survives, the widow or widower shall be entitled to one-Iourth oI the
hereditary estate. In case oI a legal separation, the surviving spouse
may inherit iI it was the deceased who had given cause Ior the same.
Art. 895. The legitime oI each oI the acknowledged natural children
and each oI the natural children by legal Iiction shall consist oI one-
halI oI the legitime oI each oI the legitimate children or descendants.
The legitime oI an illegitimate child who is neither an acknowledged
natural, nor a natural child by legal Iiction, shall be equal in every case
to Iour-IiIths oI the legitime oI an acknowledged natural child.
The legitime oI the illegitimate children shall be taken Irom the portion
oI the estate at the Iree disposal oI the testator, provided that in no case
shall the total legitime oI such illegitimate children exceed that Iree
portion, and that the legitime oI the surviving spouse must Iirst be Iully
satisIied. (840a)
Art. 896. Illegitimate children who may survive with legitimate parents
or ascendants oI the deceased shall be entitled to one-Iourth oI the
hereditary estate to be taken Irom the portion at the Iree disposal oI the
testator. (841a)
Art. 897. When the widow or widower survives with legitimate
children or descendants, and acknowledged natural children, or natural
children by legal Iiction, such surviving spouse shall be entitled to a
portion equal to the legitime oI each oI the legitimate children which
25
must be taken Irom that part oI the estate which the testator can Ireely
dispose oI. (n)
Art. 898. II the widow or widower survives with legitimate children or
descendants, and with illegitimate children other than acknowledged
natural, or natural children by legal Iiction, the share oI the surviving
spouse shall be the same as that provided in the preceding article. (n)
Art. 902. The rights oI illegitimate children set Iorth in the preceding
articles are transmitted upon their death to their descendants, whether
legitimate or illegitimate. (843a)
Art. 904. The testator cannot deprive his compulsory heirs oI their
legitime, except in cases expressly speciIied by law.
Neither can he impose upon the same any burden, encumbrance,
condition, or substitution oI any kind whatsoever. (813a)
Art. 906. Any compulsory heir to whom the testator has leIt by any
title less than the legitime belonging to him may demand that the same
be Iully satisIied. (815)
Art. 909. Donations given to children shall be charged to their
legitime.
Donations made to strangers shall be charged to that part oI the estate
oI which the testator could have disposed by his last will.
InsoIar as they may be inoIIicious or may exceed the disposable
portion, they shall be reduced according to the rules established by this
Code. (819a)
Disinheritance

Art. 915. A compulsory heir may, in consequence oI disinheritance, be
deprived oI his legitime, Ior causes expressly stated by law. (848a)
Art. 916. Disinheritance can be eIIected only through a will wherein
the legal cause thereIor shall be speciIied. (849)
Art. 917. The burden oI proving the truth oI the cause Ior
disinheritance shall rest upon the other heirs oI the testator, iI the
disinherited heir should deny it. (850)
Art. 918. Disinheritance without a speciIication oI the cause, or Ior a
cause the truth oI which, iI contradicted, is not proved, or which is not
one oI those set Iorth in this Code, shall annul the institution oI heirs
insoIar as it may prejudice the person disinherited; but the devises and
legacies and other testamentary dispositions shall be valid to such
extent as will not impair the legitime. (851a)
Art. 919. The Iollowing shall be suIIicient causes Ior the disinheritance
oI children and descendants, legitimate as well as illegitimate:
(1) When a child or descendant has been Iound guilty oI an
attempt against the liIe oI the testator, his or her spouse,
descendants, or ascendants;
(2) When a child or descendant has accused the testator oI a
crime Ior which the law prescribes imprisonment Ior six
years or more, iI the accusation has been Iound groundless;
(3) When a child or descendant has been convicted oI
adultery or concubinage with the spouse oI the testator;
(4) When a child or descendant by Iraud, violence,
intimidation, or undue inIluence causes the testator to make
a will or to change one already made;
(5) A reIusal without justiIiable cause to support the parent
or ascendant who disinherits such child or descendant;
(6) Maltreatment oI the testator by word or deed, by the
child or descendant;
(7) When a child or descendant leads a dishonorable or
disgraceIul liIe;
(8) Conviction oI a crime which carries with it the penalty oI
civil interdiction. (756, 853, 674a)
Art. 920. The Iollowing shall be suIIicient causes Ior the disinheritance
oI parents or ascendants, whether legitimate or illegitimate:
(1) When the parents have abandoned their children or
induced their daughters to live a corrupt or immoral liIe, or
attempted against their virtue;
(2) When the parent or ascendant has been convicted oI an
attempt against the liIe oI the testator, his or her spouse,
descendants, or ascendants;
(3) When the parent or ascendant has accused the testator oI
a crime Ior which the law prescribes imprisonment Ior six
years or more, iI the accusation has been Iound to be Ialse;
(4) When the parent or ascendant has been convicted oI
adultery or concubinage with the spouse oI the testator;
(5) When the parent or ascendant by Iraud, violence,
intimidation, or undue inIluence causes the testator to make
a will or to change one already made;
(6) The loss oI parental authority Ior causes speciIied in this
Code;
(7) The reIusal to support the children or descendants
without justiIiable cause;
(8) An attempt by one oI the parents against the liIe oI the
other, unless there has been a reconciliation between them.
(756, 854, 674a)
Art. 921. The Iollowing shall be suIIicient causes Ior disinheriting a
spouse:
(1) When the spouse has been convicted oI an attempt
against the liIe oI the testator, his or her descendants, or
ascendants;
26
(2) When the spouse has accused the testator oI a crime Ior
which the law prescribes imprisonment oI six years or more,
and the accusation has been Iound to be Ialse;
(3) When the spouse by Iraud, violence, intimidation, or
undue inIluence cause the testator to make a will or to
change one already made;
(4) When the spouse has given cause Ior legal separation;
(5) When the spouse has given grounds Ior the loss oI
parental authority;
(6) UnjustiIiable reIusal to support the children or the other
spouse. (756, 855, 674a)
Art. 922. A subsequent reconciliation between the oIIender and the
oIIended person deprives the latter oI the right to disinherit, and
renders ineIIectual any disinheritance that may have been made. (856)
Art. 923. The children and descendants oI the person disinherited shall
take his or her place and shall preserve the rights oI compulsory heirs
with respect to the legitime; but the disinherited parent shall not have
the usuIruct or administration oI the property which constitutes the
legitime. (857)
Art. 947. The legatee or devisee acquires a right to the pure and simple
legacies or devises Irom the death oI the testator, and transmits it to his
heirs. (881a)
Art. 962. In every inheritance, the relative nearest in degree excludes
the more distant ones, saving the right oI representation when it
properly takes place.
Relatives in the same degree shall inherit in equal shares, subject to the
provisions oI article 1006 with respect to relatives oI the Iull and halI
blood, and oI Article 987, paragraph 2, concerning division between
the paternal and maternal lines. (912a)

Art. 969. II the inheritance should be repudiated by the nearest relative,
should there be one only, or by all the nearest relatives called by law to
succeed, should there be several, those oI the Iollowing degree shall
inherit in their own right and cannot represent the person or persons
repudiating the inheritance.
Art. 972. The right oI representation takes place in the direct
descending line, but never in the ascending.
In the collateral line, it takes place only in Iavor oI the children oI
brothers or sisters, whether they be oI the Iull or halI blood. (925)
Art. 973. In order that representation may take place, it is necessary
that the representative himselI be capable oI succeeding the decedent.
(n)
Art. 974. Whenever there is succession by representation, the division
oI the estate shall be made per stirpes, in such manner that the
representative or representatives shall not inherit more than what the
person they represent would inherit, iI he were living or could inherit.
(926a)
Art. 975. When children oI one or more brothers or sisters oI the
deceased survive, they shall inherit Irom the latter by representation, iI
they survive with their uncles or aunts. But iI they alone survive, they
shall inherit in equal portions. (927)
Art. 977. Heirs who repudiate their share may not be represented.
(929a)
Art. 979. Legitimate children and their descendants succeed the
parents and other ascendants, without distinction as to sex or age, and
even iI they should come Irom diIIerent marriages.
An adopted child succeeds to the property oI the adopting parents in
the same manner as a legitimate child. (931a)
Art. 980. The children oI the deceased shall always inherit Irom him in
their own right, dividing the inheritance in equal shares. (932)
Art. 981. Should children oI the deceased and descendants oI other
children who are dead, survive, the Iormer shall inherit in their own
right, and the latter by right oI representation. (934a)
Art. 982. The grandchildren and other descendants shall inherit by
right oI representation, and iI any one oI them should have died,
leaving several heirs, the portion pertaining to him shall be divided
among the latter in equal portions. (933)
Art. 983. II illegitimate children survive with legitimate children, the
shares oI the Iormer shall be in the proportions prescribed by Article
895. (n)
Art. 990. The hereditary rights granted by the two preceding articles to
illegitimate children shall be transmitted upon their death to their
descendants, who shall inherit by right oI representation Irom their
deceased grandparent. (941a)
Art. 991. II legitimate ascendants are leIt, the illegitimate children
shall divide the inheritance with them, taking one-halI oI the estate,
whatever be the number oI the ascendants or oI the illegitimate
children. (942-841a)
Art. 992. An illegitimate child has no right to inherit ab intestato Irom
the legitimate children and relatives oI his Iather or mother; nor shall
such children or relatives inherit in the same manner Irom the
illegitimate child. (943a)
Art. 995. In the absence oI legitimate descendants and ascendants, and
illegitimate children and their descendants, whether legitimate or
illegitimate, the surviving spouse shall inherit the entire estate, without
prejudice to the rights oI brothers and sisters, nephews and nieces,
should there be any, under article 1001. (946a)
Art. 996. II a widow or widower and legitimate children or
descendants are leIt, the surviving spouse has in the succession the
same share as that oI each oI the children. (834a)
Art. 997. When the widow or widower survives with legitimate parents
or ascendants, the surviving spouse shall be entitled to one-halI oI the
estate, and the legitimate parents or ascendants to the other halI. (836a)
27
Art. 998. II a widow or widower survives with illegitimate children,
such widow or widower shall be entitled to one-halI oI the inheritance,
and the illegitimate children or their descendants, whether legitimate or
illegitimate, to the other halI. (n)
Art. 999. When the widow or widower survives with legitimate
children or their descendants and illegitimate children or their
descendants, whether legitimate or illegitimate, such widow or
widower shall be entitled to the same share as that oI a legitimate
child. (n)
Art. 1001. Should brothers and sisters or their children survive with the
widow or widower, the latter shall be entitled to one-halI oI the
inheritance and the brothers and sisters or their children to the other
halI. (953, 837a)
Art. 1003. II there are no descendants, ascendants, illegitimate
children, or a surviving spouse, the collateral relatives shall succeed to
the entire estate oI the deceased in accordance with the Iollowing
articles. (946a
Art. 1004. Should the only survivors be brothers and sisters oI the Iull
blood, they shall inherit in equal shares. (947)
Art. 1005. Should brothers and sisters survive together with nephews
and nieces, who are the children oI the descendant's brothers and
sisters oI the Iull blood, the Iormer shall inherit per capita, and the
latter per stirpes. (948)
Art. 1006. Should brother and sisters oI the Iull blood survive together
with brothers and sisters oI the halI blood, the Iormer shall be entitled
to a share double that oI the latter. (949)
Art. 1008. Children oI brothers and sisters oI the halI blood shall
succeed per capita or per stirpes, in accordance with the rules laid
down Ior the brothers and sisters oI the Iull blood. (915)
Art. 1015. Accretion is a right by virtue oI which, when two or more
persons are called to the same inheritance, devise or legacy, the part
assigned to the one who renounces or cannot receive his share, or who
died beIore the testator, is added or incorporated to that oI his co-heirs,
co-devisees, or co-legatees. (n)
Art. 1016. In order that the right oI accretion may take place in a
testamentary succession, it shall be necessary:
(1) That two or more persons be called to the same
inheritance, or to the same portion thereoI, pro indiviso; and
(2) That one oI the persons thus called die beIore the
testator, or renounce the inheritance, or be incapacitated to
receive it. (928a)
Art. 1021. Among the compulsory heirs the right oI accretion shall
take place only when the Iree portion is leIt to two or more oI them, or
to any one oI them and to a stranger.
Should the part repudiated be the legitime, the other co-heirs shall
succeed to it in their own right, and not by the right oI accretion. (985)
Art. 1025. In order to be capacitated to inherit, the heir, devisee or
legatee must be living at the moment the succession opens, except in
case oI representation, when it is proper.
A child already conceived at the time oI the death oI the decedent is
capable oI succeeding provided it be born later under the conditions
prescribed in article 41. (n)
Art. 1027. The Iollowing are incapable oI succeeding:
(1) The priest who heard the conIession oI the testator
during his last illness, or the minister oI the gospel who
extended spiritual aid to him during the same period;
(2) The relatives oI such priest or minister oI the gospel
within the Iourth degree, the church, order, chapter,
community, organization, or institution to which such priest
or minister may belong;
(3) A guardian with respect to testamentary dispositions
given by a ward in his Iavor beIore the Iinal accounts oI the
guardianship have been approved, even iI the testator should
die aIter the approval thereoI; nevertheless, any provision
made by the ward in Iavor oI the guardian when the latter is
his ascendant, descendant, brother, sister, or spouse, shall be
valid;
(4) Any attesting witness to the execution oI a will, the
spouse, parents, or children, or any one claiming under such
witness, spouse, parents, or children;
(5) Any physician, surgeon, nurse, health oIIicer or druggist
who took care oI the testator during his last illness;
(6) Individuals, associations and corporations not permitted
by law to inherit. (745, 752, 753, 754a)
Art. 1028. The prohibitions mentioned in article 739, concerning
donations inter vivos shall apply to testamentary provisions. (n)
Art. 1061. Every compulsory heir, who succeeds with other
compulsory heirs, must bring into the mass oI the estate any property
or right which he may have received Irom the decedent, during the
liIetime oI the latter, by way oI donation, or any other gratuitous title,
in order that it may be computed in the determination oI the legitime oI
each heir, and in the account oI the partition. (1035a)
Art. 1034. In order to judge the capacity oI the heir, devisee or legatee,
his qualiIication at the time oI the death oI the decedent shall be the
criterion.
In cases Ialling under Nos. 2, 3, or 5 oI Article 1032, it shall be
necessary to wait until Iinal judgment is rendered, and in the case
Ialling under No. 4, the expiration oI the month allowed Ior the report.
II the institution, devise or legacy should be conditional, the time oI
the compliance with the condition shall also be considered. (758a)
Art. 1035. II the person excluded Irom the inheritance by reason oI
incapacity should be a child or descendant oI the decedent and should
28
have children or descendants, the latter shall acquire his right to the
legitime.
The person so excluded shall not enjoy the usuIruct and administration
oI the property thus inherited by his children. (761a)
Art. 1039. Capacity to succeed is governed by the law oI the nation oI
the decedent. (n)
Art. 1062. Collation shall not take place among compulsory heirs iI the
donor should have so expressly provided, or iI the donee should
repudiate the inheritance, unless the donation should be reduced as
inoIIicious. (1036)
PRESCRIPTION OF OWNERSHIP AND OTHER REAL RIGHTS
Art. 1117. Acquisitive prescription oI dominion and other real rights
may be ordinary or extraordinary.
Ordinary acquisitive prescription requires possession oI things in good
Iaith and with just title Ior the time Iixed by law. (1940a)
Art. 1118. Possession has to be in the concept oI an owner, public,
peaceIul and uninterrupted. (1941)
Art. 1119. Acts oI possessory character executed in virtue oI license or
by mere tolerance oI the owner shall not be available Ior the purposes
oI possession. (1942)
Art. 1120. Possession is interrupted Ior the purposes oI prescription,
naturally or civilly. (1943)
Art. 1127. The good Iaith oI the possessor consists in the reasonable
belieI that the person Irom whom he received the thing was the owner
thereoI, and could transmit his ownership. (1950a)
Art. 1128. The conditions oI good Iaith required Ior possession in
Articles 526, 527, 528, and 529 oI this Code are likewise necessary Ior
the determination oI good Iaith in the prescription oI ownership and
other real rights. (1951)
Art. 1129. For the purposes oI prescription, there is just title when the
adverse claimant came into possession oI the property through one oI
the modes recognized by law Ior the acquisition oI ownership or other
real rights, but the grantor was not the owner or could not transmit any
right. (n)
Art. 1132. The ownership oI movables prescribes through
uninterrupted possession Ior Iour years in good Iaith.
The ownership oI personal property also prescribes through
uninterrupted possession Ior eight years, without need oI any other
condition.
With regard to the right oI the owner to recover personal property lost
or oI which he has been illegally deprived, as well as with respect to
movables acquired in a public sale, Iair, or market, or Irom a
merchant's store the provisions oI Articles 559 and 1505 oI this Code
shall be observed. (1955a)
Art. 1137. Ownership and other real rights over immovables also
prescribe through uninterrupted adverse possession thereoI Ior thirty
years, without need oI title or oI good Iaith. (1959a)
Art. 1142. A mortgage action prescribes aIter ten years. (1964a)
Art. 1143. The Iollowing rights, among others speciIied elsewhere in
this Code, are not extinguished by prescription:
(1) To demand a right oI way, regulated in Article 649;
(2) To bring an action to abate a public or private nuisance.
(n)
Art. 1144. The Iollowing actions must be brought within ten years
Irom the time the right oI action accrues:
(1) Upon a written contract;
(2) Upon an obligation created by law;
(3) Upon a judgment. (n)
Computation ...
Obligation
Art. 1156. An obligation is a juridical necessity to give, to do or not to
do. (n)
Art. 1157. Obligations arise Irom:
(1) Law;
(2) Contracts;
(3) Quasi-contracts;
(4) Acts or omissions punished by law; and
(5) Quasi-delicts. (1089a)
Art. 1159. Obligations arising Irom contracts have the Iorce oI law
between the contracting parties and should be complied with in good
Iaith. (1091a)
Art. 1163. Every person obliged to give something is also obliged to
take care oI it with the proper diligence oI a good Iather oI a Iamily,
unless the law or the stipulation oI the parties requires another standard
oI care. (1094a)
Art. 1164. The creditor has a right to the Iruits oI the thing Irom the
time the obligation to deliver it arises. However, he shall acquire no
real right over it until the same has been delivered to him. (1095)
Art. 1165. When what is to be delivered is a determinate thing, the
creditor, in addition to the right granted him by Article 1170, may
compel the debtor to make the delivery.
29
II the thing is indeterminate or generic, he may ask that the obligation
be complied with at the expense oI the debtor.
II the obligor delays, or has promised to deliver the same thing to two
or more persons who do not have the same interest, he shall be
responsible Ior any Iortuitous event until he has eIIected the delivery.
(1096)
Art. 1166. The obligation to give a determinate thing includes that oI
delivering all its accessions and accessories, even though they may not
have been mentioned. (1097a)
Art. 1167. II a person obliged to do something Iails to do it, the same
shall be executed at his cost.
This same rule shall be observed iI he does it in contravention oI the
tenor oI the obligation. Furthermore, it may be decreed that what has
been poorly done be undone. (1098)
Art. 1168. When the obligation consists in not doing, and the obligor
does what has been Iorbidden him, it shall also be undone at his
expense. (1099a)
Art. 1169. Those obliged to deliver or to do something incur in delay
Irom the time the obligee judicially or extrajudicially demands Irom
them the IulIillment oI their obligation.
However, the demand by the creditor shall not be necessary in order
that delay may exist:
(1) When the obligation or the law expressly so declare; or
(2) When Irom the nature and the circumstances oI the
obligation it appears that the designation oI the time when
the thing is to be delivered or the service is to be rendered
was a controlling motive Ior the establishment oI the
contract; or
(3) When demand would be useless, as when the obligor has
rendered it beyond his power to perIorm.
In reciprocal obligations, neither party incurs in delay iI the other does
not comply or is not ready to comply in a proper manner with what is
incumbent upon him. From the moment one oI the parties IulIills his
obligation, delay by the other begins. (1100a)
Art. 1170. Those who in the perIormance oI their obligations are guilty
oI Iraud, negligence, or delay, and those who in any manner
contravene the tenor thereoI, are liable Ior damages. (1101)
Art. 1174. Except in cases expressly speciIied by the law, or when it is
otherwise declared by stipulation, or when the nature oI the obligation
requires the assumption oI risk, no person shall be responsible Ior
those events which could not be Ioreseen, or which, though Ioreseen,
were inevitable. (1105a)
Nature
Art. 1167. II a person obliged to do something Iails to do it, the same
shall be executed at his cost.
This same rule shall be observed iI he does it in contravention oI the
tenor oI the obligation. Furthermore, it may be decreed that what has
been poorly done be undone. (1098)
Art. 1168. When the obligation consists in not doing, and the obligor
does what has been Iorbidden him, it shall also be undone at his
expense. (1099a)
Art. 1169. Those obliged to deliver or to do something incur in delay
Irom the time the obligee judicially or extrajudicially demands Irom
them the IulIillment oI their obligation.
However, the demand by the creditor shall not be necessary in order
that delay may exist:
(1) When the obligation or the law expressly so declare; or
(2) When Irom the nature and the circumstances oI the
obligation it appears that the designation oI the time when
the thing is to be delivered or the service is to be rendered
was a controlling motive Ior the establishment oI the
contract; or
(3) When demand would be useless, as when the obligor has
rendered it beyond his power to perIorm.
In reciprocal obligations, neither party incurs in delay iI the other does
not comply or is not ready to comply in a proper manner with what is
incumbent upon him. From the moment one oI the parties IulIills his
obligation, delay by the other begins. (1100a)
Art. 1170. Those who in the perIormance oI their obligations are guilty
oI Iraud, negligence, or delay, and those who in any manner
contravene the tenor thereoI, are liable Ior damages. (1101)
Art. 1174. Except in cases expressly speciIied by the law, or when it is
otherwise declared by stipulation, or when the nature oI the obligation
requires the assumption oI risk, no person shall be responsible Ior
those events which could not be Ioreseen, or which, though Ioreseen,
were inevitable. (1105a)
Art. 1176. The receipt oI the principal by the creditor without
reservation with respect to the interest, shall give rise to the
presumption that said interest has been paid.
The receipt oI a later installment oI a debt without reservation as to
prior installments, shall likewise raise the presumption that such
installments have been paid. (1110a)
Art. 1177. The creditors, aIter having pursued the property in
possession oI the debtor to satisIy their claims, may exercise all the
rights and bring all the actions oI the latter Ior the same purpose, save
those which are inherent in his person; they may also impugn the acts
which the debtor may have done to deIraud them. (1111)
Art. 1178. Subject to the laws, all rights acquired in virtue oI an
obligation are transmissible, iI there has been no stipulation to the
contrary.
Art. 1179. Every obligation whose perIormance does not depend upon
a Iuture or uncertain event, or upon a past event unknown to the
parties, is demandable at once.
30
Every obligation which contains a resolutory condition shall also be
demandable, without prejudice to the eIIects oI the happening oI the
event. (1113)
Art. 1180. When the debtor binds himselI to pay when his means
permit him to do so, the obligation shall be deemed to be one with a
period, subject to the provisions oI Article
Art. 1181. In conditional obligations, the acquisition oI rights, as well
as the extinguishment or loss oI those already acquired, shall depend
upon the happening oI the event which constitutes the condition.
(1114)
Art. 1182. When the IulIillment oI the condition depends upon the sole
will oI the debtor, the conditional obligation shall be void. II it depends
upon chance or upon the will oI a third person, the obligation shall take
eIIect in conIormity with the provisions oI this Code. (1115)
Art. 1183. Impossible conditions, those contrary to good customs or
public policy and those prohibited by law shall annul the obligation
which depends upon them. II the obligation is divisible, that part
thereoI which is not aIIected by the impossible or unlawIul condition
shall be valid.
The condition not to do an impossible thing shall be considered as not
having been agreed upon. (1116a)
Art. 1185. The condition that some event will not happen at a
determinate time shall render the obligation eIIective Irom the moment
the time indicated has elapsed, or iI it has become evident that the
event cannot occur.
II no time has been Iixed, the condition shall be deemed IulIilled at
such time as may have probably been contemplated, bearing in mind
the nature oI the obligation. (1118)
Art. 1187. The eIIects oI a conditional obligation to give, once the
condition has been IulIilled, shall retroact to the day oI the constitution
oI the obligation. Nevertheless, when the obligation imposes reciprocal
prestations upon the parties, the Iruits and interests during the
pendency oI the condition shall be deemed to have been mutually
compensated. II the obligation is unilateral, the debtor shall
appropriate the Iruits and interests received, unless Irom the nature and
circumstances oI the obligation it should be inIerred that the intention
oI the person constituting the same was diIIerent.
In obligations to do and not to do, the courts shall determine, in each
case, the retroactive eIIect oI the condition that has been complied
with. (1120)
Art. 1191. The power to rescind obligations is implied in reciprocal
ones, in case one oI the obligors should not comply with what is
incumbent upon him.
The injured party may choose between the IulIillment and the
rescission oI the obligation, with the payment oI damages in either
case. He may also seek rescission, even aIter he has chosen IulIillment,
iI the latter should become impossible.
The court shall decree the rescission claimed, unless there be just cause
authorizing the Iixing oI a period.
This is understood to be without prejudice to the rights oI third persons
who have acquired the thing, in accordance with Articles 1385 and
1388 and the Mortgage Law
Obligation With A Period
Art. 1194. In case oI loss, deterioration or improvement oI the thing
beIore the arrival oI the day certain, the rules in Article 1189 shall be
observed. (n)
Art. 1195. Anything paid or delivered beIore the arrival oI the period,
the obligor being unaware oI the period or believing that the obligation
has become due and demandable, may be recovered, with the Iruits
and interests. (1126a)
Art. 1196. Whenever in an obligation a period is designated, it is
presumed to have been established Ior the beneIit oI both the creditor
and the debtor, unless Irom the tenor oI the same or other
circumstances it should appear that the period has been established in
Iavor oI one or oI the other. (1127)
Art. 1197. II the obligation does not Iix a period, but Irom its nature
and the circumstances it can be inIerred that a period was intended, the
courts may Iix the duration thereoI.
The courts shall also Iix the duration oI the period when it depends
upon the will oI the debtor.
In every case, the courts shall determine such period as may under the
circumstances have been probably contemplated by the parties. Once
Iixed by the courts, the period cannot be changed by them. (1128a)
Art. 1198. The debtor shall lose every right to make use oI the period:
(1) When aIter the obligation has been contracted, he becomes
insolvent, unless he gives a guaranty or security Ior the debt;
(2) When he does not Iurnish to the creditor the guaranties or securities
which he has promised;
(3) When by his own acts he has impaired said guaranties or securities
aIter their establishment, and when through a Iortuitous event they
disappear, unless he immediately gives new ones equally satisIactory;
(4) When the debtor violates any undertaking, in consideration oI
which the creditor agreed to the period;
(5) When the debtor attempts to abscond. (1129a)
Art. 1198. The debtor shall lose every right to make use oI the period:
(1) When aIter the obligation has been contracted, he becomes
insolvent, unless he gives a guaranty or security Ior the debt;
(2) When he does not Iurnish to the creditor the guaranties or securities
which he has promised;
(3) When by his own acts he has impaired said guaranties or securities
aIter their establishment, and when through a Iortuitous event they
disappear, unless he immediately gives new ones equally satisIactory;
31
(4) When the debtor violates any undertaking, in consideration oI
which the creditor agreed to the period;
(5) When the debtor attempts to abscond. (1129a)
Solidarity
Art. 1207. The concurrence oI two or more creditors or oI two or more
debtors in one and the same obligation does not imply that each one oI
the Iormer has a right to demand, or that each one oI the latter is bound
to render, entire compliance with the prestation. There is a solidary
liability only when the obligation expressly so states, or when the law
or the nature oI the obligation requires solidarity. (1137a)
Art. 1208. II Irom the law, or the nature or the wording oI the
obligations to which the preceding article reIers the contrary does not
appear, the credit or debt shall be presumed to be divided into as many
shares as there are creditors or debtors, the credits or debts being
considered distinct Irom one another, subject to the Rules oI Court
governing the multiplicity oI suits. (1138a)
Art. 1209. II the division is impossible, the right oI the creditors may
be prejudiced only by their collective acts, and the debt can be
enIorced only by proceeding against all the debtors. II one oI the latter
should be insolvent, the others shall not be liable Ior his share. (1139)
Art. 1211. Solidarity may exist although the creditors and the debtors
may not be bound in the same manner and by the same periods and
conditions. (1140)
Art. 1216. The creditor may proceed against any one oI the solidary
debtors or some or all oI them simultaneously. The demand made
against one oI them shall not be an obstacle to those which may
subsequently be directed against the others, so long as the debt has not
been Iully collected. (1144a)
Art. 1217. Payment made by one oI the solidary debtors extinguishes
the obligation. II two or more solidary debtors oIIer to pay, the creditor
may choose which oIIer to accept.
Art. 1219. The remission made by the creditor oI the share which
aIIects one oI the solidary debtors does not release the latter Irom his
responsibility towards the co-debtors, in case the debt had been totally
paid by anyone oI them beIore the remission was eIIected. (1146a)
Art. 1222. A solidary debtor may, in actions Iiled by the creditor, avail
himselI oI all deIenses which are derived Irom the nature oI the
obligation and oI those which are personal to him, or pertain to his
own share. With respect to those which personally belong to the
others, he may avail himselI thereoI only as regards that part oI the
debt Ior which the latter are responsible.
Art. 1226. In obligations with a penal clause, the penalty shall
substitute the indemnity Ior damages and the payment oI interests in
case oI noncompliance, iI there is no stipulation to the contrary.
Nevertheless, damages shall be paid iI the obligor reIuses to pay the
penalty or is guilty oI Iraud in the IulIillment oI the obligation.
Art. 1235. When the obligee accepts the perIormance, knowing its
incompleteness or irregularity, and without expressing any protest or
objection, the obligation is deemed Iully complied with. (n)
Art. 1240. Payment shall be made to the person in whose Iavor the
obligation has been constituted, or his successor in interest, or any
person authorized to receive it. (1162a)
Payment
Art. 1245. Dation in payment, whereby property is alienated to the
creditor in satisIaction oI a debt in money, shall be governed by the
law oI sales.
Art. 1246. When the obligation consists in the delivery oI an
indeterminate or generic thing, whose quality and circumstances have
not been stated, the creditor cannot demand a thing oI superior quality.
Neither can the debtor deliver a thing oI inIerior quality. The purpose
oI the obligation and other circumstances shall be taken into
consideration. (1167a)
Art. 1248. Unless there is an express stipulation to that eIIect, the
creditor cannot be compelled partially to receive the prestations in
which the obligation consists. Neither may the debtor be required to
make partial payments.
However, when the debt is in part liquidated and in part unliquidated,
the creditor may demand and the debtor may eIIect the payment oI the
Iormer without waiting Ior the liquidation oI the latter. (1169a)
Art. 1249. The payment oI debts in money shall be made in the
currency stipulated, and iI it is not possible to deliver such currency,
then in the currency which is legal tender in the Philippines.
The delivery oI promissory notes payable to order, or bills oI exchange
or other mercantile documents shall produce the eIIect oI payment
only when they have been cashed, or when through the Iault oI the
creditor they have been impaired.
In the meantime, the action derived Irom the original obligation shall
be held in the abeyance. (1170)
Art. 1250. In case an extraordinary inIlation or deIlation oI the
currency stipulated should supervene, the value oI the currency at the
time oI the establishment oI the obligation shall be the basis oI
payment, unless there is an agreement to the contrary. (n)
Art. 1251. Payment shall be made in the place designated in the
obligation.
There being no express stipulation and iI the undertaking is to deliver a
determinate thing, the payment shall be made wherever the thing might
be at the moment the obligation was constituted.
In any other case the place oI payment shall be the domicile oI the
debtor.
II the debtor changes his domicile in bad Iaith or aIter he has incurred
in delay, the additional expenses shall be borne by him.
These provisions are without prejudice to venue under the Rules oI
Court. (1171a)
32
Art. 1252. He who has various debts oI the same kind in Iavor oI one
and the same creditor, may declare at the time oI making the payment,
to which oI them the same must be applied. Unless the parties so
stipulate, or when the application oI payment is made by the party Ior
whose beneIit the term has been constituted, application shall not be
made as to debts which are not yet due.
II the debtor accepts Irom the creditor a receipt in which an application
oI the payment is made, the Iormer cannot complain oI the same,
unless there is a cause Ior invalidating the contract. (1172a)
Art. 1253. II the debt produces interest, payment oI the principal shall
not be deemed to have been made until the interests have been
covered. (1173)
Art. 1254. When the payment cannot be applied in accordance with the
preceding rules, or iI application can not be inIerred Irom other
circumstances, the debt which is most onerous to the debtor, among
those due, shall be deemed to have been satisIied.
II the debts due are oI the same nature and burden, the payment shall
be applied to all oI them proportionately. (1174a)
Payment by Cession

Art. 1255. The debtor may cede or assign his property to his creditors
in payment oI his debts. This cession, unless there is stipulation to the
contrary, shall only release the debtor Irom responsibility Ior the net
proceeds oI the thing assigned. The agreements which, on the eIIect oI
the cession, are made between the debtor and his creditors shall be
governed by special laws. (1175a

Art. 1256. II the creditor to whom tender oI payment has been made
reIuses without just cause to accept it, the debtor shall be released Irom
responsibility by the consignation oI the thing or sum due.
Consignation alone shall produce the same eIIect in the Iollowing
cases:
(1) When the creditor is absent or unknown, or does not
appear at the place oI payment;
(2) When he is incapacitated to receive the payment at the
time it is due;
(3) When, without just cause, he reIuses to give a receipt;
(4) When two or more persons claim the same right to
collect;
(5) When the title oI the obligation has been lost. (1176a)
Art. 1257. In order that the consignation oI the thing due may release
the obligor, it must Iirst be announced to the persons interested in the
IulIillment oI the obligation.
The consignation shall be ineIIectual iI it is not made strictly in
consonance with the provisions which regulate payment. (1177)
Art. 1258. Consignation shall be made by depositing the things due at
the disposal oI judicial authority, beIore whom the tender oI payment
shall be proved, in a proper case, and the announcement oI the
consignation in other cases.
The consignation having been made, the interested parties shall also be
notiIied thereoI. (1178)
Art. 1259. The expenses oI consignation, when properly made, shall be
charged against the creditor. (1178)
Art. 1260. Once the consignation has been duly made, the debtor may
ask the judge to order the cancellation oI the obligation.
BeIore the creditor has accepted the consignation, or beIore a judicial
declaration that the consignation has been properly made, the debtor
may withdraw the thing or the sum deposited, allowing the obligation
to remain in Iorce. (1180)
Art. 1261. II, the consignation having been made, the creditor should
authorize the debtor to withdraw the same, he shall lose every
preIerence which he may have over the thing. The co-debtors,
guarantors and sureties shall be released. (1181a)
Art. 1232. Payment means not only the delivery oI money but also the
perIormance, in any other manner, oI an obligation. (n)
Art. 1222. A solidarv debtor mav, in actions filed bv the creditor, avail
himself of all defenses which are derived from the nature of the
obligation and of those which are personal to him, or pertain to his
own share. With respect to those which personallv belong to the
others, he mav avail himself thereof onlv as regards that part of the
debt for which the latter are responsible.
Art. 1234. II the obligation has been substantially perIormed in good
Iaith, the obligor may recover as though there had been a strict and
complete IulIillment, less damages suIIered by the obligee. (n)
Art. 1215. Novation, compensation, confusion or remission of the debt,
made bv anv of the solidarv creditors or with anv of the solidarv
debtors, shall extinguish the obligation, without prefudice to the
provisions of Article 1219.
The creditor who mav have executed anv of these acts, as well as he
who collects the debt, shall be liable to the others for the share in the
obligation corresponding to them.
Loss
Art. 1262. An obligation which consists in the delivery oI a
determinate thing shall be extinguished iI it should be lost or destroyed
without the Iault oI the debtor, and beIore he has incurred in delay.
When by law or stipulation, the obligor is liable even Ior Iortuitous
events, the loss oI the thing does not extinguish the obligation, and he
shall be responsible Ior damages. The same rule applies when the
nature oI the obligation requires the assumption oI risk. (1182a)
Art. 1263. In an obligation to deliver a generic thing, the loss or
destruction oI anything oI the same kind does not extinguish the
obligation. (n)
33
Art. 1266. The debtor in obligations to do shall also be released when
the prestation becomes legally or physically impossible without the
Iault oI the obligor. (1184a)
Art. 1267. When the service has become so diIIicult as to be
maniIestly beyond the contemplation oI the parties, the obligor may
also be released thereIrom, in whole or in part. (n)
Art. 1270. Condonation or remission is essentially gratuitous, and
requires the acceptance by the obligor. It may be made expressly or
impliedly.
One and the other kind shall be subject to the rules which govern
inoIIicious donations. Express condonation shall, Iurthermore, comply
with the Iorms oI donation. (1187)
Compensation
Art. 1278. Compensation shall take place when two persons, in their
own right, are creditors and debtors oI each other. (1195)
Art. 1279. In order that compensation may be proper, it is necessary:
(1) That each one oI the obligors be bound principally, and
that he be at the same time a principal creditor oI the other;
(2) That both debts consist in a sum oI money, or iI the
things due are consumable, they be oI the same kind, and
also oI the same quality iI the latter has been stated;
(3) That the two debts be due;
(4) That they be liquidated and demandable;
(5) That over neither oI them there be any retention or
controversy, commenced by third persons and
communicated in due time to the debtor. (1196)
Art. 1280. Notwithstanding the provisions oI the preceding article, the
guarantor may set up compensation as regards what the creditor may
owe the principal debtor. (1197)
Art. 1287. Compensation shall not be proper when one oI the debts
arises Irom a depositum or Irom the obligations oI a depositary or oI a
bailee in commodatum.
Neither can compensation be set up against a creditor who has a claim
Ior support due by gratuitous title, without prejudice to the provisions
oI paragraph 2 oI Article 301. (1200a)
Novation
Art. 1291. Obligations may be modiIied by:
(1) Changing their object or principal conditions;
(2) Substituting the person oI the debtor;
(3) Subrogating a third person in the rights oI the creditor.
(1203)
Art. 1292. In order that an obligation may be extinguished by another
which substitute the same, it is imperative that it be so declared in
unequivocal terms, or that the old and the new obligations be on every
point incompatible with each other. (1204)
Art. 1293. Novation which consists in substituting a new debtor in the
place oI the original one, may be made even without the knowledge or
against the will oI the latter, but not without the consent oI the creditor.
Payment by the new debtor gives him the rights mentioned in Articles
1236 and 1237. (1205a)
Art. 1294. II the substitution is without the knowledge or against the
will oI the debtor, the new debtor's insolvency or non-IulIillment oI the
obligations shall not give rise to any liability on the part oI the original
debtor. (n)
Art. 1296. When the principal obligation is extinguished in
consequence oI a novation, accessory obligations may subsist only
insoIar as they may beneIit third persons who did not give their
consent. (1207)
Contracts
Art. 1305. A contract is a meeting oI minds between two persons
whereby one binds himselI, with respect to the other, to give
something or to render some service. (1254a)
Art. 1306. The contracting parties may establish such stipulations,
clauses, terms and conditions as they may deem convenient, provided
they are not contrary to law, morals, good customs, public order, or
public policy. (1255a)
Art. 1307. Innominate contracts shall be regulated by the stipulations
oI the parties, by the provisions oI Titles I and II oI this Book, by the
rules governing the most analogous nominate contracts, and by the
customs oI the place. (n)
Art. 1308. The contract must bind both contracting parties; its validity
or compliance cannot be leIt to the will oI one oI them. (1256a)
Art. 1311. Contracts take eIIect only between the parties, their assigns
and heirs, except in case where the rights and obligations arising Irom
the contract are not transmissible by their nature, or by stipulation or
by provision oI law. The heir is not liable beyond the value oI the
property he received Irom the decedent.
II a contract should contain some stipulation in Iavor oI a third person,
he may demand its IulIillment provided he communicated his
acceptance to the obligor beIore its revocation. A mere incidental
beneIit or interest oI a person is not suIIicient. The contracting parties
must have clearly and deliberately conIerred a Iavor upon a third
person. (1257a)
Art. 1314. Any third person who induces another to violate his contract
shall be liable Ior damages to the other contracting party. (n)
Art. 1315. Contracts are perIected by mere consent, and Irom that
moment the parties are bound not only to the IulIillment oI what has
been expressly stipulated but also to all the consequences which,
34
according to their nature, may be in keeping with good Iaith, usage and
law. (1258)
Art. 1316. Real contracts, such as deposit, pledge and Commodatum,
are not perIected until the delivery oI the object oI the obligation. (n)
Art. 1317. No one may contract in the name oI another without being
authorized by the latter, or unless he has by law a right to represent
him.
A contract entered into in the name oI another by one who has no
authority or legal representation, or who has acted beyond his powers,
shall be unenIorceable, unless it is ratiIied, expressly or impliedly, by
the person on whose behalI it has been executed, beIore it is revoked
by the other contracting party.
Art. 1318. There is no contract unless the Iollowing requisites concur:
(1) Consent oI the contracting parties;
(2) Object certain which is the subject matter oI the contract;
(3) Cause oI the obligation which is established. (1261)
Consent

Art. 1319. Consent is maniIested by the meeting oI the oIIer and the
acceptance upon the thing and the cause which are to constitute the
contract. The oIIer must be certain and the acceptance absolute. A
qualiIied acceptance constitutes a counter-oIIer.
Acceptance made by letter or telegram does not bind the oIIerer except
Irom the time it came to his knowledge. The contract, in such a case, is
presumed to have been entered into in the place where the oIIer was
made. (1262a)
Art. 1323. An oIIer becomes ineIIective upon the death, civil
interdiction, insanity, or insolvency oI either party beIore acceptance is
conveyed. (n)
Art. 1324. When the oIIerer has allowed the oIIeree a certain period to
accept, the oIIer may be withdrawn at any time beIore acceptance by
communicating such withdrawal, except when the option is Iounded
upon a consideration, as something paid or promised
Art. 1326. Advertisements Ior bidders are simply invitations to make
proposals, and the advertiser is not bound to accept the highest or
lowest bidder, unless the contrary appears. (n)
Art. 1327. The Iollowing cannot give consent to a contract:
(1) Unemancipated minors;
(2) Insane or demented persons, and deaI-mutes who do not
know how to write. (1263a)
Art. 1339. Failure to disclose Iacts, when there is a duty to reveal
them, as when the parties are bound by conIidential relations,
constitutes Iraud. (n)
Art. 1479. A promise to buv and sell a determinate thing for a price
certain is reciprocallv demandable.
An accepted unilateral promise to buv or to sell a determinate thing
for a price certain is binding upon the promissor if the promise is
supported bv a consideration distinct from the price.
Kinds/Forms
Art. 1356. Contracts shall be obligatory, in whatever Iorm they may
have been entered into, provided all the essential requisites Ior their
validity are present. However, when the law requires that a contract be
in some Iorm in order that it may be valid or enIorceable, or that a
contract be proved in a certain way, that requirement is absolute and
indispensable. In such cases, the right oI the parties stated in the
Iollowing article cannot be exercised. (1278a)
Art. 1357. II the law requires a document or other special Iorm, as in
the acts and contracts enumerated in the Iollowing article, the
contracting parties may compel each other to observe that Iorm, once
the contract has been perIected. This right may be exercised
simultaneously with the action upon the contract. (1279a)
Art. 1380. Contracts validly agreed upon may be rescinded in the cases
established by law. (1290)
Art. 1381. The Iollowing contracts are rescissible:
(1) Those which are entered into by guardians whenever the
wards whom they represent suIIer lesion by more than one-
Iourth oI the value oI the things which are the object thereoI;
(2) Those agreed upon in representation oI absentees, iI the
latter suIIer the lesion stated in the preceding number;
(3) Those undertaken in Iraud oI creditors when the latter
cannot in any other manner collect the claims due them;
(4) Those which reIer to things under litigation iI they have
been entered into by the deIendant without the knowledge
and approval oI the litigants or oI competent judicial
authority;
(5) All other contracts specially declared by law to be
subject to rescission. (1291a)
Art. 1383. The action Ior rescission is subsidiary; it cannot be
instituted except when the party suIIering damage has no other legal
means to obtain reparation Ior the same. (1294)
Art. 1385. Rescission creates the obligation to return the things which
were the object oI the contract, together with their Iruits, and the price
with its interest; consequently, it can be carried out only when he who
demands rescission can return whatever he may be obliged to restore.
Neither shall rescission take place when the things which are the object
oI the contract are legally in the possession oI third persons who did
not act in bad Iaith.
In this case, indemnity Ior damages may be demanded Irom the person
causing the loss.
VOIDABLE CONTRACTS
35

Art. 1390. The Iollowing contracts are voidable or annullable, even
though there may have been no damage to the contracting parties:
(1) Those where one oI the parties is incapable oI giving
consent to a contract;
(2) Those where the consent is vitiated by mistake, violence,
intimidation, undue inIluence or Iraud.
These contracts are binding, unless they are annulled by a proper
action in court. They are susceptible oI ratiIication. (n)
Art. 1391. The action Ior annulment shall be brought within Iour years.
This period shall begin:
In cases oI intimidation, violence or undue inIluence, Irom
the time the deIect oI the consent ceases.
In case oI mistake or Iraud, Irom the time oI the discovery oI
the same.
And when the action reIers to contracts entered into by minors or other
incapacitated persons, Irom the time the guardianship ceases. (1301a)
Art. 1396. RatiIication cleanses the contract Irom all its deIects Irom
the moment it was constituted. (1313)
Art. 1397. The action Ior the annulment oI contracts may be instituted
by all who are thereby obliged principally or subsidiarily. However,
persons who are capable cannot allege the incapacity oI those with
whom they contracted; nor can those who exerted intimidation,
violence, or undue inIluence, or employed Iraud, or caused mistake
base their action upon these Ilaws oI the contract. (1302a)
Art. 1399. When the deIect oI the contract consists in the incapacity oI
one oI the parties, the incapacitated person is not obliged to make any
restitution except insoIar as he has been beneIited by the thing or price
received by him. (1304)
UNENFORCEABLE CONTRACTS

Art. 1403. The Iollowing contracts are unenIorceable, unless they are
ratiIied:
(1) Those entered into in the name oI another person by one
who has been given no authority or legal representation, or
who has acted beyond his powers;
(2) Those that do not comply with the Statute oI Frauds as
set Iorth in this number. In the Iollowing cases an agreement
hereaIter made shall be unenIorceable by action, unless the
same, or some note or memorandum, thereoI, be in writing,
and subscribed by the party charged, or by his agent;
evidence, thereIore, oI the agreement cannot be received
without the writing, or a secondary evidence oI its contents:
(a) An agreement that by its terms is not to be
perIormed within a year Irom the making thereoI;
(b) A special promise to answer Ior the debt,
deIault, or miscarriage oI another;
(c) An agreement made in consideration oI
marriage, other than a mutual promise to marry;
(d) An agreement Ior the sale oI goods, chattels or
things in action, at a price not less than Iive
hundred pesos, unless the buyer accept and receive
part oI such goods and chattels, or the evidences,
or some oI them, oI such things in action or pay at
the time some part oI the purchase money; but
when a sale is made by auction and entry is made
by the auctioneer in his sales book, at the time oI
the sale, oI the amount and kind oI property sold,
terms oI sale, price, names oI the purchasers and
person on whose account the sale is made, it is a
suIIicient memorandum;
(e) An agreement oI the leasing Ior a longer period
than one year, or Ior the sale oI real property or oI
an interest therein;
(I) A representation as to the credit oI a third
person.
(3) Those where both parties are incapable oI giving consent to a
contract
VOID AND INEXISTENT CONTRACTS

Art. 1409. The Iollowing contracts are inexistent and void Irom the
beginning:
(1) Those whose cause, object or purpose is contrary to law,
morals, good customs, public order or public policy;
(2) Those which are absolutely simulated or Iictitious;
(3) Those whose cause or object did not exist at the time oI
the transaction;
(4) Those whose object is outside the commerce oI men;
(5) Those which contemplate an impossible service;
(6) Those where the intention oI the parties relative to the
principal object oI the contract cannot be ascertained;
(7) Those expressly prohibited or declared void by law.
These contracts cannot be ratiIied. Neither can the right to set up the
deIense oI illegality be waived.
Art. 1410. The action or deIense Ior the declaration oI the inexistence
oI a contract does not prescribe.
Art. 1411. When the nullity proceeds Irom the illegality oI the cause or
object oI the contract, and the act constitutes a criminal oIIense, both
parties being in pari delicto, they shall have no action against each
other, and both shall be prosecuted. Moreover, the provisions oI the
Penal Code relative to the disposal oI eIIects or instruments oI a crime
shall be applicable to the things or the price oI the contract.
36
This rule shall be applicable when only one oI the parties is guilty; but
the innocent one may claim what he has given, and shall not be bound
to comply with his promise. (1305)
Art. 1412. II the act in which the unlawIul or Iorbidden cause consists
does not constitute a criminal oIIense, the Iollowing rules shall be
observed:
(1) When the Iault is on the part oI both contracting parties,
neither may recover what he has given by virtue oI the
contract, or demand the perIormance oI the other's
undertaking;
(2) When only one oI the contracting parties is at Iault, he
cannot recover what he has given by reason oI the contract,
or ask Ior the IulIillment oI what has been promised him.
The other, who is not at Iault, may demand the return oI
what he has given without any obligation to comply his
promise. (1306)
Art. 1413. Interest paid in excess oI the interest allowed by the usury
laws may be recovered by the debtor, with interest thereon Irom the
date oI the payment.
Art. 1416. When the agreement is not illegal per se but is merely
prohibited, and the prohibition by the law is designated Ior the
protection oI the plaintiII, he may, iI public policy is thereby enhanced,
recover what he has paid or delivered.
Art. 1420. In case oI a divisible contract, iI the illegal terms can be
separated Irom the legal ones, the latter may be enIorced.
NATURAL OBLIGATIONS

Art. 1423. Obligations are civil or natural. Civil obligations give a
right oI action to compel their perIormance. Natural obligations, not
being based on positive law but on equity and natural law, do not grant
a right oI action to enIorce their perIormance, but aIter voluntary
IulIillment by the obligor, they authorize the retention oI what has
been delivered or rendered by reason thereoI. Some natural obligations
are set Iorth in the Iollowing articles.
Natural Obligation
Art. 1424. When a right to sue upon a civil obligation has lapsed by
extinctive prescription, the obligor who voluntarily perIorms the
contract cannot recover what he has delivered or the value oI the
service he has rendered.
Estopel

Art. 1431. Through estoppel an admission or representation is rendered
conclusive upon the person making it, and cannot be denied or
disproved as against the person relying thereon.
Art. 1433. Estoppel may be in pais or by deed.
Art. 1434. When a person who is not the owner oI a thing sells or
alienates and delivers it, and later the seller or grantor acquires title
thereto, such title passes by operation oI law to the buyer or grantee.
Art. 1435. II a person in representation oI another sells or alienates a
thing, the Iormer cannot subsequently set up his own title as against
the buyer or grantee.
Art. 1436. A lessee or a bailee is estopped Irom asserting title to the
thing leased or received, as against the lessor or bailor.
Art. 1437. When in a contract between third persons concerning
immovable property, one oI them is misled by a person with respect to
the ownership or real right over the real estate, the latter is precluded
Irom asserting his legal title or interest therein, provided all these
requisites are present:
(1) There must be Iraudulent representation or wrongIul
concealment oI Iacts known to the party estopped;
(2) The party precluded must intend that the other should act
upon the Iacts as misrepresented;
(3) The party misled must have been unaware oI the true
Iacts; and
(4) The party deIrauded must have acted in accordance with
the misrepresentation.
Trust
Art. 1440. A person who establishes a trust is called the trustor; one in
whom conIidence is reposed as regards property Ior the beneIit oI
another person is known as the trustee; and the person Ior whose
beneIit the trust has been created is reIerred to as the beneIiciary.
Art. 1443. No express trusts concerning an immovable or any interest
therein may be proved by parol evidence.
Art. 1448. There is an implied trust when property is sold, and the
legal estate is granted to one party but the price is paid by another Ior
the purpose oI having the beneIicial interest oI the property. The
Iormer is the trustee, while the latter is the beneIiciary. However, iI the
person to whom the title is conveyed is a child, legitimate or
illegitimate, oI the one paying the price oI the sale, no trust is implied
by law, it being disputably presumed that there is a giIt in Iavor oI the
child.
Art. 1449. There is also an implied trust when a donation is made to a
person but it appears that although the legal estate is transmitted to the
donee, he nevertheless is either to have no beneIicial interest or only a
part thereoI.
Art. 1451. When land passes by succession to any person and he
causes the legal title to be put in the name oI another, a trust is
established by implication oI law Ior the beneIit oI the true owner.
Art. 1453. When property is conveyed to a person in reliance upon his
declared intention to hold it Ior, or transIer it to another or the grantor,
there is an implied trust in Iavor oI the person whose beneIit is
contemplated.
37
Art. 1456. II property is acquired through mistake or Iraud, the person
obtaining it is, by Iorce oI law, considered a trustee oI an implied trust
Ior the beneIit oI the person Irom whom the property comes.
Sales
Art. 1458. By the contract oI sale one oI the contracting parties
obligates himselI to transIer the ownership and to deliver a determinate
thing, and the other to pay thereIor a price certain in money or its
equivalent.
A contract oI sale may be absolute or conditional. (1445a)
Art. 1459. The thing must be licit and the vendor must have a right to
transIer the ownership thereoI at the time it is delivered. (n)
Art. 1499. The deliverv of movable propertv mav likewise be
made bv the mere consent or agreement of the contracting parties, if
the thing sold cannot be transferred to the possession of the vendee at
the time of the sale, or if the latter alreadv had it in his possession for
anv other reason. (1463a)
Art. 1500. There mav also be tradition constitutum possessorium. (n)
Art. 1501. With respect to incorporeal propertv, the
provisions of the first paragraph of article 1498 shall govern. In anv
other case wherein said provisions are not applicable, the placing of
the titles of ownership in the possession of the vendee or the use bv the
vendee of his rights, with the vendor´s consent, shall be understood as
a deliverv. (1464)
Art. 1502. When goods are delivered to the buver "on sale
or return" to give the buver an option to return the goods instead of
paving the price, the ownership passes to the buver of deliverv, but he
mav revest the ownership in the seller bv returning or tendering the
goods within the time fixed in the contract, or, if no time has been
fixed, within a reasonable time. (n)
When goods are delivered to the buver on approval or on trial or on
satisfaction, or other similar terms, the ownership therein passes to
the buver.
(1) When he signifies his approval or acceptance to the
seller or does anv other act adopting the transaction,
(2) If he does not signifv his approval or acceptance to the
seller, but retains the goods without giving notice of
refection, then if a time has been fixed for the return of the
goods, on the expiration of such time, and, if no time has
been fixed, on the expiration of a reasonable time. What is a
reasonable time is a question of fact. (n)
Art. 1503. When there is a contract of sale of specific goods,
the seller mav, bv the terms of the contract, reserve the right of
possession or ownership in the goods until certain conditions have
been fulfilled. The right of possession or ownership mav be thus
reserved notwithstanding the deliverv of the goods to the buver or to a
carrier or other bailee for the purpose of transmission to the buver.
Where goods are shipped, and bv the bill of lading the goods are
deliverable to the seller or his agent, or to the order of the seller or of
his agent, the seller therebv reserves the ownership in the goods. But,
if except for the form of the bill of lading, the ownership would have
passed to the buver on shipment of the goods, the seller´s propertv in
the goods shall be deemed to be onlv for the purpose of securing
performance bv the buver of his obligations under the contract.
Where goods are shipped, and bv the bill of lading the goods are
deliverable to order of the buver or of his agent, but possession of the
bill of lading is retained bv the seller or his agent, the seller therebv
reserves a right to the possession of the goods as against the buver.
Where the seller of goods draws on the buver for the price and
transmits the bill of exchange and bill of lading together to the buver
to secure acceptance or pavment of the bill of exchange, the buver is
bound to return the bill of lading if he does not honor the bill of
exchange, and if he wrongfullv retains the bill of lading he acquires no
added right therebv. If, however, the bill of lading provides that the
goods are deliverable to the buver or to the order of the buver, or is
indorsed in blank, or to the buver bv the consignee named therein, one
who purchases in good faith, for value, the bill of lading, or goods
from the buver will obtain the ownership in the goods, although the
bill of exchange has not been honored, provided that such purchaser
has received deliverv of the bill of lading indorsed bv the consignee
named therein, or of the goods, without notice of the facts making the
transfer wrongful. (n)
Art. 1504. Unless otherwise agreed, the goods remain at the
seller´s risk until the ownership therein is transferred to the buver, but
when the ownership therein is transferred to the buver the goods are
at the buver´s risk whether actual deliverv has been made or not,
except that.
(1) Where deliverv of the goods has been made to the buver
or to a bailee for the buver, in pursuance of the contract and
the ownership in the goods has been retained bv the seller
merelv to secure performance bv the buver of his obligations
under the contract, the goods are at the buver´s risk from the
time of such deliverv,
(2) Where actual deliverv has been delaved through the fault
of either the buver or seller the goods are at the risk of the
partv in fault. (n)
Art. 1470. Gross inadequacy oI price does not aIIect a contract oI sale,
except as it may indicate a deIect in the consent, or that the parties
really intended a donation or some other act or contract. (n)
Art. 1475. The contract oI sale is perIected at the moment there is a
meeting oI minds upon the thing which is the object oI the contract and
upon the price.
From that moment, the parties may reciprocally demand perIormance,
subject to the provisions oI the law governing the Iorm oI contracts.
(1450a)
Art. 1476. In the case oI a sale by auction:
(1) Where goods are put up Ior sale by auction in lots, each
lot is the subject oI a separate contract oI sale.
(2) A sale by auction is perIected when the auctioneer
announces its perIection by the Iall oI the hammer, or in
other customary manner. Until such announcement is made,
any bidder may retract his bid; and the auctioneer may
38
withdraw the goods Irom the sale unless the auction has
been announced to be without reserve.
(3) A right to bid may be reserved expressly by or on behalI
oI the seller, unless otherwise provided by law or by
stipulation.
(4) Where notice has not been given that a sale by auction is
subject to a right to bid on behalI oI the seller, it shall not be
lawIul Ior the seller to bid himselI or to employ or induce
any person to bid at such sale on his behalI or Ior the
auctioneer, to employ or induce any person to bid at such
sale on behalI oI the seller or knowingly to take any bid
Irom the seller or any person employed by him. Any sale
contravening this rule may be treated as Iraudulent by the
buyer. (n)
Art. 1477. The ownership oI the thing sold shall be transIerred to the
vendee upon the actual or constructive delivery thereoI. (n)
Art. 1478. The parties may stipulate that ownership in the thing shall
not pass to the purchaser until he has Iully paid the price. (n)
Art. 1479. A promise to buy and sell a determinate thing Ior a price
certain is reciprocally demandable.
An accepted unilateral promise to buy or to sell a determinate thing Ior
a price certain is binding upon the promissor iI the promise is
supported by a consideration distinct Irom the price. (1451a)
Art. 1482. Whenever earnest money is given in a contract oI sale, it
shall be considered as part oI the price and as prooI oI the perIection oI
the contract. (1454a)
Art. 1484. In a contract oI sale oI personal property the price oI which
is payable in installments, the vendor may exercise any oI the
Iollowing remedies:
(1) Exact IulIillment oI the obligation, should the vendee Iail
to pay;
(2) Cancel the sale, should the vendee's Iailure to pay cover
two or more installments;
(3) Foreclose the chattel mortgage on the thing sold, iI one
has been constituted, should the vendee's Iailure to pay cover
two or more installments. In this case, he shall have no
Iurther action against the purchaser to recover any unpaid
balance oI the price. Any agreement to the contrary shall be
void. (1454-A-a)
Art. 1485. The preceding article shall be applied to contracts
purporting to be leases oI personal property with option to buy, when
the lessor has deprived the lessee oI the possession or enjoyment oI the
thing. (1454-A-a)
Art. 1486. In the case reIerred to in two preceding articles, a
stipulation that the installments or rents paid shall not be returned to
the vendee or lessee shall be valid insoIar as the same may not be
unconscionable under the circumstances. (n)
Art. 1496. The ownership oI the thing sold is acquired by the vendee
Irom the moment it is delivered to him in any oI the ways speciIied in
Articles 1497 to 1501, or in any other manner signiIying an agreement
that the possession is transIerred Irom the vendor to the vendee. (n)

Art. 1497. The thing sold shall be understood as delivered, when it is
placed in the control and possession oI the vendee. (1462a)
Art. 1504. Unless otherwise agreed, the goods remain at the seller's
risk until the ownership therein is transIerred to the buyer, but when
the ownership therein is transIerred to the buyer the goods are at the
buyer's risk whether actual delivery has been made or not, except that:
(1) Where delivery oI the goods has been made to the buyer
or to a bailee Ior the buyer, in pursuance oI the contract and
the ownership in the goods has been retained by the seller
merely to secure perIormance by the buyer oI his obligations
under the contract, the goods are at the buyer's risk Irom the
time oI such delivery;
(2) Where actual delivery has been delayed through the Iault
oI either the buyer or seller the goods are at the risk oI the
party in Iault. (n)
Art. 1544. II the same thing should have been sold to diIIerent
vendees, the ownership shall be transIerred to the person who may
have Iirst taken possession thereoI in good Iaith, iI it should be
movable property.
Should it be immovable property, the ownership shall belong to the
person acquiring it who in good Iaith Iirst recorded it in the Registry oI
Property.
Should there be no inscription, the ownership shall pertain to the
person who in good Iaith was Iirst in the possession; and, in the
absence thereoI, to the person who presents the oldest title, provided
there is good Iaith. (1473)
Art. 1505. Subfect to the provisions of this Title, where goods are sold
bv a person who is not the owner thereof, and who does not sell them
under authoritv or with the consent of the owner, the buver acquires
no better title to the goods than the seller had, unless the owner of the
goods is bv his conduct precluded from denving the seller´s authoritv
to sell.
Nothing in this Title, however, shall affect.
(1) The provisions of anv factors´ act, recording laws, or anv
other provision of law enabling the apparent owner of goods
to dispose of them as if he were the true owner thereof,
(2) The validitv of anv contract of sale under statutorv
power of sale or under the order of a court of competent
furisdiction,
(3) Purchases made in a merchant´s store, or in fairs, or
markets, in accordance with the Code of Commerce and
special laws. (n)
OBLIGATIONS OF THE VENDOR
39

Art. 1504. Unless otherwise agreed, the goods remain at the seller's
risk until the ownership therein is transIerred to the buyer, but when
the ownership therein is transIerred to the buyer the goods are at the
buyer's risk whether actual delivery has been made or not, except that:
(1) Where delivery oI the goods has been made to the buyer
or to a bailee Ior the buyer, in pursuance oI the contract and
the ownership in the goods has been retained by the seller
merely to secure perIormance by the buyer oI his obligations
under the contract, the goods are at the buyer's risk Irom the
time oI such delivery;
(2) Where actual delivery has been delayed through the Iault
oI either the buyer or seller the goods are at the risk oI the
party in Iault. (n)
Art. 1537. The vendor is bound to deliver the thing sold and its
accessions and accessories in the condition in which they were upon
the perIection oI the contract.
All the Iruits shall pertain to the vendee Irom the day on which the
contract was perIected. (1468a)
Art. 1544. II the same thing should have been sold to diIIerent
vendees, the ownership shall be transIerred to the person who may
have Iirst taken possession thereoI in good Iaith, iI it should be
movable property.
Should it be immovable property, the ownership shall belong to the
person acquiring it who in good Iaith Iirst recorded it in the Registry oI
Property.
Should there be no inscription, the ownership shall pertain to the
person who in good Iaith was Iirst in the possession; and, in the
absence thereoI, to the person who presents the oldest title, provided
there is good Iaith. (1473
Art. 1559. The deIendant vendee shall ask, within the time Iixed in the
Rules oI Court Ior answering the complaint, that the vendor be made a
co-deIendant. (1482a)
Art. 1561. The vendor shall be responsible Ior warranty against the
hidden deIects which the thing sold may have, should they render it
unIit Ior the use Ior which it is intended, or should they diminish its
Iitness Ior such use to such an extent that, had the vendee been aware
thereoI, he would not have acquired it or would have given a lower
price Ior it; but said vendor shall not be answerable Ior patent deIects
or those which may be visible, or Ior those which are not visible iI the
vendee is an expert who, by reason oI his trade or proIession, should
have known them. (1484a)
Art. 1562. In a sale oI goods, there is an implied warranty or condition
as to the quality or Iitness oI the goods, as Iollows:
(1) Where the buyer, expressly or by implication, makes
known to the seller the particular purpose Ior which the
goods are acquired, and it appears that the buyer relies on
the seller's skill or judgment (whether he be the grower or
manuIacturer or not), there is an implied warranty that the
goods shall be reasonably Iit Ior such purpose;
(2) Where the goods are brought by description Irom a seller
who deals in goods oI that description (whether he be the
grower or manuIacturer or not), there is an implied warranty
that the goods shall be oI merchantable quality. (n)
Art. 1545. Where the obligation of either partv to a contract of sale is
subfect to anv condition which is not performed, such partv mav refuse
to proceed with the contract or he mav waive performance of the
condition. If the other partv has promised that the condition should
happen or be performed, such first mentioned partv mav also treat the
nonperformance of the condition as a breach of warrantv.
Where the ownership in the thing has not passed, the buver mav treat
the fulfillment bv the seller of his obligation to deliver the same as
described and as warranted expresslv or bv implication in the contract
of sale as a condition of the obligation of the buver to perform his
promise to accept and pav for the thing. (n)
Art. 1583. Unless otherwise agreed, the buyer oI goods is not bound to
accept delivery thereoI by installments.
Where there is a contract oI sale oI goods to be delivered by stated
installments, which are to be separately paid Ior, and the seller makes
deIective deliveries in respect oI one or more instalments, or the buyer
neglects or reIuses without just cause to take delivery oI or pay Ior one
more instalments, it depends in each case on the terms oI the contract
and the circumstances oI the case, whether the breach oI contract is so
material as to justiIy the injured party in reIusing to proceed Iurther
and suing Ior damages Ior breach oI the entire contract, or whether the
breach is severable, giving rise to a claim Ior compensation but not to a
right to treat the whole contract as broken. (n)
Art. 1592. In the sale oI immovable property, even though it may have
been stipulated that upon Iailure to pay the price at the time agreed
upon the rescission oI the contract shall oI right take place, the vendee
may pay, even aIter the expiration oI the period, as long as no demand
Ior rescission oI the contract has been made upon him either judicially
or by a notarial act. AIter the demand, the court may not grant him a
new term. (1504a)
Art. 1601. Conventional redemption shall take place when the vendor
reserves the right to repurchase the thing sold, with the obligation to
comply with the provisions oI Article 1616 and other stipulations
which may have been agreed upon. (1507)
Art. 1602. The contract shall be presumed to be an equitable mortgage,
in any oI the Iollowing cases:
(1) When the price oI a sale with right to repurchase is
unusually inadequate;
(2) When the vendor remains in possession as lessee or
otherwise;
(3) When upon or aIter the expiration oI the right to
repurchase another instrument extending the period oI
redemption or granting a new period is executed;
(4) When the purchaser retains Ior himselI a part oI the
purchase price;
40
(5) When the vendor binds himselI to pay the taxes on the
thing sold;
(6) In any other case where it may be Iairly inIerred that the
real intention oI the parties is that the transaction shall
secure the payment oI a debt or the perIormance oI any other
obligation.
In any oI the Ioregoing cases, any money, Iruits, or other beneIit to be
received by the vendee as rent or otherwise shall be considered as
interest which shall be subject to the usury laws. (n)
Art. 1603. In case oI doubt, a contract purporting to be a sale with right
to repurchase shall be construed as an equitable mortgage. (n)
Art. 1616. The vendor cannot avail himself of the right of repurchase
without returning to the vendee the price of the sale, and in addition.
(1) The expenses of the contract, and anv other legitimate
pavments made bv reason of the sale,
(2) The necessarv and useful expenses made on the thing
sold. (1518)
Art. 1604. The provisions oI Article 1602 shall also apply to a contract
purporting to be an absolute sale. (n)
Art. 1605. In the cases reIerred to in Articles 1602 and 1604, the
apparent vendor may ask Ior the reIormation oI the instrument. (n)
Art. 1606. The right reIerred to in Article 1601, in the absence oI an
express agreement, shall last Iour years Irom the date oI the contract.
Should there be an agreement, the period cannot exceed ten years.
However, the vendor may still exercise the right to repurchase within
thirty days Irom the time Iinal judgment was rendered in a civil action
on the basis that the contract was a true sale with right to repurchase.
(1508a)
Art. 1607. In case oI real property, the consolidation oI ownership in
the vendee by virtue oI the Iailure oI the vendor to comply with the
provisions oI article 1616 shall not be recorded in the Registry oI
Property without a judicial order, aIter the vendor has been duly heard.
(n)
Art. 1619. Legal redemption is the right to be subrogated, upon the
same terms and conditions stipulated in the contract, in the place oI
one who acquires a thing by purchase or dation in payment, or by any
other transaction whereby ownership is transmitted by onerous title.
(1521a)
Legal Redemption

Art. 1619. Legal redemption is the right to be subrogated, upon the
same terms and conditions stipulated in the contract, in the place oI
one who acquires a thing by purchase or dation in payment, or by any
other transaction whereby ownership is transmitted by onerous title.
(1521a)
Art. 1620. A co-owner oI a thing may exercise the right oI redemption
in case the shares oI all the other co-owners or oI any oI them, are sold
to a third person. II the price oI the alienation is grossly excessive, the
redemptioner shall pay only a reasonable one.
Should two or more co-owners desire to exercise the right oI
redemption, they may only do so in proportion to the share they may
respectively have in the thing owned in common. (1522a)
Art. 1621. The owners oI adjoining lands shall also have the right oI
redemption when a piece oI rural land, the area oI which does not
exceed one hectare, is alienated, unless the grantee does not own any
rural land.
This right is not applicable to adjacent lands which are separated by
brooks, drains, ravines, roads and other apparent servitudes Ior the
beneIit oI other estates.
II two or more adjoining owners desire to exercise the right oI
redemption at the same time, the owner oI the adjoining land oI
smaller area shall be preIerred; and should both lands have the same
area, the one who Iirst requested the redemption. (1523a)
Art. 1622. Whenever a piece oI urban land which is so small and so
situated that a major portion thereoI cannot be used Ior any practical
purpose within a reasonable time, having been bought merely Ior
speculation, is about to be re-sold, the owner oI any adjoining land has
a right oI pre-emption at a reasonable price.
II the re-sale has been perIected, the owner oI the adjoining land shall
have a right oI redemption, also at a reasonable price.
When two or more owners oI adjoining lands wish to exercise the right
oI
pre-emption or redemption, the owner whose intended use oI the land
in question appears best justiIied shall be preIerred. (n)
Art. 1623. The right oI legal pre-emption or redemption shall not be
exercised except within thirty days Irom the notice in writing by the
prospective vendor, or by the vendor, as the case may be. The deed oI
sale shall not be recorded in the Registry oI Property, unless
accompanied by an aIIidavit oI the vendor that he has given written
notice thereoI to all possible redemptioners.
The right oI redemption oI co-owners excludes that oI adjoining
owners. (1524a)
Assignment Of Credits And Other Incorporeal Rights

Art. 1624. An assignment oI creditors and other incorporeal rights
shall be perIected in accordance with the provisions oI Article 1475.
(n)
Art. 1634. When a credit or other incorporeal right in litigation is sold,
the debtor shall have a right to extinguish it by reimbursing the
assignee Ior the price the latter paid thereIor, the judicial costs incurred
by him, and the interest on the price Irom the day on which the same
was paid.
41
A credit or other incorporeal right shall be considered in litigation
Irom the time the complaint concerning the same is answered.
The debtor may exercise his right within thirty days Irom the date the
assignee demands payment Irom him. (1535)
Lease
Art. 1642. The contract oI lease may be oI things, or oI work and
service. (1542)
Art. 1647. II a lease is to be recorded in the Registry oI Property, the
Iollowing persons cannot constitute the same without proper authority:
the husband with respect to the wiIe's paraphernal real estate, the
Iather or guardian as to the property oI the minor or ward, and the
manager without special power. (1548a)
Art. 1649. The lessee cannot assign the lease without the consent oI the
lessor, unless there is a stipulation to the contrary. (n)
Art. 1650. When in the contract oI lease oI things there is no express
prohibition, the lessee may sublet the thing leased, in whole or in part,
without prejudice to his responsibility Ior the perIormance oI the
contract toward the lessor. (1550)
Art. 1651. Without prejudice to his obligation toward the sublessor, the
sublessee is bound to the lessor Ior all acts which reIer to the use and
preservation oI the thing leased in the manner stipulated between the
lessor and the lessee. (1551)
Art. 1652. The sublessee is subsidiarily liable to the lessor Ior any rent
due Irom the lessee. However, the sublessee shall not be responsible
beyond the amount oI rent due Irom him, in accordance with the terms
oI the sublease, at the time oI the extrajudicial demand by the lessor.
Payments oI rent in advance by the sublessee shall be deemed not to
have been made, so Iar as the lessor's claim is concerned, unless said
payments were eIIected in virtue oI the custom oI the place. (1552a)
Art. 1654. The lessor is obliged:
(1) To deliver the thing which is the object oI the contract in
such a condition as to render it Iit Ior the use intended;
(2) To make on the same during the lease all the necessary
repairs in order to keep it suitable Ior the use to which it has
been devoted, unless there is a stipulation to the contrary;
(3) To maintain the lessee in the peaceIul and adequate
enjoyment oI the lease Ior the entire duration oI the contract.
(1554a)
Art. 1655. II the thing leased is totally destroyed by a Iortuitous event,
the lease is extinguished. II the destruction is partial, the lessee may
choose between a proportional reduction oI the rent and a rescission oI
the lease. (n)
Art. 1657. The lessee is obliged:
(1) To pay the price oI the lease according to the terms
stipulated;
(2) To use the thing leased as a diligent Iather oI a Iamily,
devoting it to the use stipulated; and in the absence oI
stipulation, to that which may be inIerred Irom the nature oI
the thing leased, according to the custom oI the place;
(3) To pay expenses Ior the deed oI lease. (1555)
Art. 1659. II the lessor or the lessee should not comply with the
obligations set Iorth in Articles 1654 and 1657, the aggrieved party
may ask Ior the rescission oI the contract and indemniIication Ior
damages, or only the latter, allowing the contract to remain in Iorce.
(1556)
Art. 1665. The lessee shall return the thing leased, upon the
termination oI the lease, as he received it, save what has been lost or
impaired by the lapse oI time, or by ordinary wear and tear, or Irom an
inevitable cause. (1561a)
Art. 1666. In the absence oI a statement concerning the condition oI
the thing at the time the lease was constituted, the law presumes that
the lessee received it in good condition, unless there is prooI to the
contrary. (1562)
Art. 1667. The lessee is responsible Ior the deterioration or loss oI the
thing leased, unless he proves that it took place without his Iault. This
burden oI prooI on the lessee does not apply when the destruction is
due to earthquake, Ilood, storm or other natural calamity. (1563a)
Art. 1670. II at the end oI the contract the lessee should continue
enjoying the thing leased Ior IiIteen days with the acquiescence oI the
lessor, and unless a notice to the contrary by either party has
previously been given, it is understood that there is an implied new
lease, not Ior the period oI the original contract, but Ior the time
established in Articles 1682 and 1687. The other terms oI the original
contract shall be revived.
Art. 1673. The lessor may judicially eject the lessee Ior any oI the
Iollowing causes:
(1) When the period agreed upon, or that which is Iixed Ior
the duration oI leases under Articles 1682 and 1687, has
expired;
(2) Lack oI payment oI the price stipulated;
(3) Violation oI any oI the conditions agreed upon in the
contract;
(4) When the lessee devotes the thing leased to any use or
service not stipulated which causes the deterioration thereoI;
or iI he does not observe the requirement in No. 2 oI Article
1657, as regards the use thereoI.
The ejectment oI tenants oI agricultural lands is governed by special
laws.
42
Art. 1676. The purchaser oI a piece oI land which is under a lease that
is not recorded in the Registry oI Property may terminate the lease,
save when there is a stipulation to the contrary in the contract oI sale,
or when the purchaser knows oI the existence oI the lease.
II the buyer makes use oI this right, the lessee may demand that he be
allowed to gather the Iruits oI the harvest which corresponds to the
current agricultural year and that the vendor indemniIy him Ior
damages suIIered.
II the sale is Iictitious, Ior the purpose oI extinguishing the lease, the
supposed vendee cannot make use oI the right granted in the Iirst
paragraph oI this article. The sale is presumed to be Iictitious iI at the
time the supposed vendee demands the termination oI the lease, the
sale is not recorded in the Registry oI Property. (1571a)
Art. 1677. The purchaser in a sale with the right oI redemption cannot
make use oI the power to eject the lessee until the end oI the period Ior
the redemption. (1572)
Art. 1678. II the lessee makes, in good Iaith, useIul improvements
which are suitable to the use Ior which the lease is intended, without
altering the Iorm or substance oI the property leased, the lessor upon
the termination oI the lease shall pay the lessee one-halI oI the value oI
the improvements at that time. Should the lessor reIuse to reimburse
said amount, the lessee may remove the improvements, even though
the principal thing may suIIer damage thereby. He shall not, however,
cause any more impairment upon the property leased than is necessary.
With regard to ornamental expenses, the lessee shall not be entitled to
any reimbursement, but he may remove the ornamental objects,
provided no damage is caused to the principal thing, and the lessor
does not choose to retain them by paying their value at the time the
lease is extinguished. (n)
Art. 1678. II the lessee makes, in good Iaith, useIul improvements
which are suitable to the use Ior which the lease is intended, without
altering the Iorm or substance oI the property leased, the lessor upon
the termination oI the lease shall pay the lessee one-halI oI the value oI
the improvements at that time. Should the lessor reIuse to reimburse
said amount, the lessee may remove the improvements, even though
the principal thing may suIIer damage thereby. He shall not, however,
cause any more impairment upon the property leased than is necessary.
With regard to ornamental expenses, the lessee shall not be entitled to
any reimbursement, but he may remove the ornamental objects,
provided no damage is caused to the principal thing, and the lessor
does not choose to retain them by paying their value at the time the
lease is extinguished. (n)
Art. 1680. The lessee shall have no right to a reduction oI the rent on
account oI the sterility oI the land leased, or by reason oI the loss oI
Iruits due to ordinary Iortuitous events; but he shall have such right in
case oI the loss oI more than one-halI oI the Iruits through
extraordinary and unIoreseen Iortuitous events, save always when
there is a speciIic stipulation to the contrary.
Extraordinary Iortuitous events are understood to be: Iire, war,
pestilence, unusual Ilood, locusts, earthquake, or others which are
uncommon, and which the contracting parties could not have
reasonably Ioreseen. (1575)
Art. 1682. The lease oI a piece oI rural land, when its duration has not
been Iixed, is understood to have been Ior all the time necessary Ior the
gathering oI the Iruits which the whole estate leased may yield in one
year, or which it may yield once, although two or more years have to
elapse Ior the purpose. (1577a)
Art. 1687. II the period Ior the lease has not been Iixed, it is
understood to be Irom year to year, iI the rent agreed upon is annual;
Irom month to month, iI it is monthly; Irom week to week, iI the rent is
weekly; and Irom day to day, iI the rent is to be paid daily. However,
even though a monthly rent is paid, and no period Ior the lease has
been set, the courts may Iix a longer term Ior the lease aIter the lessee
has occupied the premises Ior over one year. II the rent is weekly, the
courts may likewise determine a longer period aIter the lessee has been
in possession Ior over six months. In case oI daily rent, the courts may
also Iix a longer period aIter the lessee has stayed in the place Ior over
one month. (1581a)
Contract oI Labor
Art. 1700. The relations between capital and labor are not merely
contractual. They are so impressed with public interest that labor
contracts must yield to the common good. ThereIore, such contracts
are subject to the special laws on labor unions, collective bargaining,
strikes and lockouts, closed shop, wages, working conditions, hours oI
labor and similar subjects.
Art. 1702. In case oI doubt, all labor legislation and all labor contracts
shall be construed in Iavor oI the saIety and decent living Ior the
laborer.
Art. 1723. The engineer or architect who drew up the plans and
speciIications Ior a building is liable Ior damages iI within IiIteen
years Irom the completion oI the structure, the same should collapse by
reason oI a deIect in those plans and speciIications, or due to the
deIects in the ground. The contractor is likewise responsible Ior the
damages iI the ediIice Ialls, within the same period, on account oI
deIects in the construction or the use oI materials oI inIerior quality
Iurnished by him, or due to any violation oI the terms oI the contract.
II the engineer or architect supervises the construction, he shall be
solidarily liable with the contractor.
Acceptance oI the building, aIter completion, does not imply waiver oI
any oI the cause oI action by reason oI any deIect mentioned in the
preceding paragraph.
The action must be brought within ten years Iollowing the collapse oI
the building. (n)
Art. 1724. The contractor who undertakes to build a structure or any
other work Ior a stipulated price, in conIormity with plans and
speciIications agreed upon with the land-owner, can neither withdraw
Irom the contract nor demand an increase in the price on account oI the
higher cost oI labor or materials, save when there has been a change in
the plans and speciIications, provided:
43
(1) Such change has been authorized by the proprietor in
writing; and
(2) The additional price to be paid to the contractor has been
determined in writing by both parties. (1593a)
Art. 1727. The contractor is responsible Ior the work done by persons
employed by him. (1596)
Art. 1733. Common carriers, Irom the nature oI their business and Ior
reasons oI public policy, are bound to observe extraordinary diligence
in the vigilance over the goods and Ior the saIety oI the passengers
transported by them, according to all the circumstances oI each case.
Such extraordinary diligence in the vigilance over the goods is Iurther
expressed in Articles 1734, 1735, and 1745, Nos. 5, 6, and 7, while the
extraordinary diligence Ior the saIety oI the passengers is Iurther set
Iorth in Articles 1755 and 1756.
Safety of Passengers

Art. 1755. A common carrier is bound to carry the passengers saIely as
Iar as human care and Ioresight can provide, using the utmost diligence
oI very cautious persons, with a due regard Ior all the circumstances.
Art. 1756. In case oI death oI or injuries to passengers, common
carriers are presumed to have been at Iault or to have acted
negligently, unless they prove that they observed extraordinary
diligence as prescribed in Articles 1733 and 1755.
Art. 1757. The responsibility oI a common carrier Ior the saIety oI
passengers as required in Articles 1733 and 1755 cannot be dispensed
with or lessened by stipulation, by the posting oI notices, by statements
on tickets, or otherwise.
Art. 1758. When a passenger is carried gratuitously, a stipulation
limiting the common carrier's liability Ior negligence is valid, but not
Ior wilIul acts or gross negligence.
The reduction oI Iare does not justiIy any limitation oI the common
carrier's liability.
Art. 1759. Common carriers are liable Ior the death oI or injuries to
passengers through the negligence or wilIul acts oI the Iormer's
employees, although such employees may have acted beyond the scope
oI their authority or in violation oI the orders oI the common carriers.
This liability oI the common carriers does not cease upon prooI that
they exercised all the diligence oI a good Iather oI a Iamily in the
selection and supervision oI their employees.
Art. 1760. The common carrier's responsibility prescribed in the
preceding article cannot be eliminated or limited by stipulation, by the
posting oI notices, by statements on the tickets or otherwise.
Art. 1761. The passenger must observe the diligence oI a good Iather
oI a Iamily to avoid injury to himselI.
Art. 1762. The contributory negligence oI the passenger does not bar
recovery oI damages Ior his death or injuries, iI the proximate cause
thereoI is the negligence oI the common carrier, but the amount oI
damages shall be equitably reduced.
Art. 1763. A common carrier is responsible Ior injuries suIIered by a
passenger on account oI the wilIul acts or negligence oI other
passengers or oI strangers, iI the common carrier's employees through
the exercise oI the diligence oI a good Iather oI a Iamily could have
prevented or stopped the act or omission.
Art. 1764. Damages in cases comprised in this Section shall be
awarded in accordance with Title XVIII oI this Book, concerning
Damages. Article 2206 shall also apply to the death oI a passenger
caused by the breach oI contract by a common carrier
Partnership
Art. 1767. By the contract oI partnership two or more persons bind
themselves to contribute money, property, or industry to a common
Iund, with the intention oI dividing the proIits among themselves.
Two or more persons may also Iorm a partnership Ior the exercise oI a
proIession. (1665a)
Art. 1769. In determining whether a partnership exists, these rules
shall apply:
(1) Except as provided by Article 1825, persons who are not
partners as to each other are not partners as to third persons;
(2) Co-ownership or co-possession does not oI itselI
establish a partnership, whether such-co-owners or co-
possessors do or do not share any proIits made by the use oI
the property;
(3) The sharing oI gross returns does not oI itselI establish a
partnership, whether or not the persons sharing them have a
joint or common right or interest in any property Irom which
the returns are derived;
(4) The receipt by a person oI a share oI the proIits oI a
business is prima Iacie evidence that he is a partner in the
business, but no such inIerence shall be drawn iI such proIits
were received in payment:

(a) As a debt by installments or otherwise;
(b) As wages oI an employee or rent to a landlord;
(c) As an annuity to a widow or representative oI a
deceased partner;
(d) As interest on a loan, though the amount oI
payment vary with the proIits oI the business;
(e) As the consideration Ior the sale oI a goodwill
oI a business or other property by installments or
otherwise. (n)
44
Art. 1782. Persons who are prohibited Irom giving each other any
donation or advantage cannot enter into universal partnership. (1677)
Art. 1789. An industrial partner cannot engage in business Ior himselI,
unless the partnership expressly permits him to do so; and iI he should
do so, the capitalist partners may either exclude him Irom the Iirm or
avail themselves oI the beneIits which he may have obtained in
violation oI this provision, with a right to damages in either case. (n)
Art. 1797. The losses and proIits shall be distributed in conIormity
with the agreement. II only the share oI each partner in the proIits has
been agreed upon, the share oI each in the losses shall be in the same
proportion.
In the absence oI stipulation, the share oI each partner in the proIits
and losses shall be in proportion to what he may have contributed, but
the industrial partner shall not be liable Ior the losses. As Ior the
proIits, the industrial partner shall receive such share as may be just
and equitable under the circumstances. II besides his services he has
contributed capital, he shall also receive a share in the proIits in
proportion to his capital. (1689a)
Art. 1799. A stipulation which excludes one or more partners Irom any
share in the proIits or losses is void. (1691)
Art. 1800. The partner who has been appointed manager in the articles
oI partnership may execute all acts oI administration despite the
opposition oI his partners, unless he should act in bad Iaith; and his
power is irrevocable without just or lawIul cause. The vote oI the
partners representing the controlling interest shall be necessary Ior
such revocation oI power.
A power granted aIter the partnership has been constituted may be
revoked at any time. (1692a)
Art. 1801. II two or more partners have been intrusted with the
management oI the partnership without speciIication oI their respective
duties, or without a stipulation that one oI them shall not act without
the consent oI all the others, each one may separately execute all acts
oI administration, but iI any oI them should oppose the acts oI the
others, the decision oI the majority shall prevail. In case oI a tie, the
matter shall be decided by the partners owning the controlling interest.
(1693a)
Art. 1804. Every partner may associate another person with him in his
share, but the associate shall not be admitted into the partnership
without the consent oI all the other partners, even iI the partner having
an associate should be a manager. (1696)
Art. 1808. The capitalist partners cannot engage Ior their own account
in any operation which is oI the kind oI business in which the
partnership is engaged, unless there is a stipulation to the contrary.
Any capitalist partner violating this prohibition shall bring to the
common Iunds any proIits accruing to him Irom his transactions, and
shall personally bear all the losses. (n)
Art. 1813. A conveyance by a partner oI his whole interest in the
partnership does not oI itselI dissolve the partnership, or, as against the
other partners in the absence oI agreement, entitle the assignee, during
the continuance oI the partnership, to interIere in the management or
administration oI the partnership business or aIIairs, or to require any
inIormation or account oI partnership transactions, or to inspect the
partnership books; but it merely entitles the assignee to receive in
accordance with his contract the proIits to which the assigning partner
would otherwise be entitled. However, in case oI Iraud in the
management oI the partnership, the assignee may avail himselI oI the
usual remedies.
In case oI a dissolution oI the partnership, the assignee is entitled to
receive his assignor's interest and may require an account Irom the date
only oI the last account agreed to by all the partners. (n)
Art. 1816. All partners, including industrial ones, shall be liable pro
rata with all their property and aIter all the partnership assets have
been exhausted, Ior the contracts which may be entered into in the
name and Ior the account oI the partnership, under its signature and by
a person authorized to act Ior the partnership. However, any partner
may enter into a separate obligation to perIorm a partnership contract.
(n)
Art. 1818. Every partner is an agent oI the partnership Ior the purpose
oI its business, and the act oI every partner, including the execution in
the partnership name oI any instrument, Ior apparently carrying on in
the usual way the business oI the partnership oI which he is a member
binds the partnership, unless the partner so acting has in Iact no
authority to act Ior the partnership in the particular matter, and the
person with whom he is dealing has knowledge oI the Iact that he has
no such authority.
An act oI a partner which is not apparently Ior the carrying on oI
business oI the partnership in the usual way does not bind the
partnership unless authorized by the other partners.
Except when authorized by the other partners or unless they have
abandoned the business, one or more but less than all the partners have
no authority to:
(1) Assign the partnership property in trust Ior creditors or
on the assignee's promise to pay the debts oI the partnership;
(2) Dispose oI the good-will oI the business;
(3) Do any other act which would make it impossible to
carry on the ordinary business oI a partnership;
(4) ConIess a judgment;
(5) Enter into a compromise concerning a partnership claim
or liability;
(6) Submit a partnership claim or liability to arbitration;
(7) Renounce a claim oI the partnership.
No act oI a partner in contravention oI a restriction on authority shall
bind the partnership to persons having knowledge oI the restriction. (n)
Art. 1822. Where, by any wrongIul act or omission oI any partner
acting in the ordinary course oI the business oI the partnership or with
the authority oI co-partners, loss or injury is caused to any person, not
being a partner in the partnership, or any penalty is incurred, the
partnership is liable thereIor to the same extent as the partner so acting
or omitting to act. (n)
45
Art. 1824. All partners are liable solidarily with the partnership Ior
everything chargeable to the partnership under Articles 1822 and 1823.
(n)
Art. 1825. When a person, by words spoken or written or by conduct,
represents himselI, or consents to another representing him to anyone,
as a partner in an existing partnership or with one or more persons not
actual partners, he is liable to any such persons to whom such
representation has been made, who has, on the Iaith oI such
representation, given credit to the actual or apparent partnership, and iI
he has made such representation or consented to its being made in a
public manner he is liable to such person, whether the representation
has or has not been made or communicated to such person so giving
credit by or with the knowledge oI the apparent partner making the
representation or consenting to its being made:
(1) When a partnership liability results, he is liable as though
he were an actual member oI the partnership;
(2) When no partnership liability results, he is liable pro rata
with the other persons, iI any, so consenting to the contract
or representation as to incur liability, otherwise separately.
When a person has been thus represented to be a partner in an existing
partnership, or with one or more persons not actual partners, he is an
agent oI the persons consenting to such representation to bind them to
the same extent and in the same manner as though he were a partner in
Iact, with respect to persons who rely upon the representation. When
all the members oI the existing partnership consent to the
representation, a partnership act or obligation results; but in all other
cases it is the joint act or obligation oI the person acting and the
persons consenting to the representation. (n)
Art. 1829. On dissolution the partnership is not terminated, but
continues until the winding up oI partnership aIIairs is completed. (n)
Art. 1830. Dissolution is caused:
(1) Without violation oI the agreement between the partners:
(a) By the termination oI the deIinite term or
particular undertaking speciIied in the agreement;
(b) By the express will oI any partner, who must
act in good Iaith, when no deIinite term or
particular is speciIied;
(c) By the express will oI all the partners who
have not assigned their interests or suIIered them
to be charged Ior their separate debts, either beIore
or aIter the termination oI any speciIied term or
particular undertaking;
(d) By the expulsion oI any partner Irom the
business bona Iide in accordance with such a
power conIerred by the agreement between the
partners;
(2) In contravention oI the agreement between the partners,
where the circumstances do not permit a dissolution under
any other provision oI this article, by the express will oI any
partner at any time;
(3) By any event which makes it unlawIul Ior the business oI
the partnership to be carried on or Ior the members to carry
it on in partnership;
(4) When a speciIic thing which a partner had promised to
contribute to the partnership, perishes beIore the delivery; in
any case by the loss oI the thing, when the partner who
contributed it having reserved the ownership thereoI, has
only transIerred to the partnership the use or enjoyment oI
the same; but the partnership shall not be dissolved by the
loss oI the thing when it occurs aIter the partnership has
acquired the ownership thereoI;
(5) By the death oI any partner;
(6) By the insolvency oI any partner or oI the partnership;
(7) By the civil interdiction oI any partner;
(8) By decree oI court under the Iollowing article. (1700a
and 1701a)
Art. 1837. When dissolution is caused in any way, except in
contravention oI the partnership agreement, each partner, as against his
co-partners and all persons claiming through them in respect oI their
interests in the partnership, unless otherwise agreed, may have the
partnership property applied to discharge its liabilities, and the surplus
applied to pay in cash the net amount owing to the respective partners.
But iI dissolution is caused by expulsion oI a partner, bona Iide under
the partnership agreement and iI the expelled partner is discharged
Irom all partnership liabilities, either by payment or agreement under
the second paragraph oI Article 1835, he shall receive in cash only the
net amount due him Irom the partnership.
When dissolution is caused in contravention oI the partnership
agreement the rights oI the partners shall be as Iollows:
(1) Each partner who has not caused dissolution wrongIully
shall have:

(a) All the rights speciIied in the Iirst paragraph oI
this article, and
(b) The right, as against each partner who has
caused the dissolution wrongIully, to damages
breach oI the agreement.
(2) The partners who have not caused the dissolution
wrongIully, iI they all desire to continue the business in the
same name either by themselves or jointly with others, may
do so, during the agreed term Ior the partnership and Ior that
purpose may possess the partnership property, provided they
secure the payment by bond approved by the court, or pay
any partner who has caused the dissolution wrongIully, the
value oI his interest in the partnership at the dissolution, less
any damages recoverable under the second paragraph, No. 1
(b) oI this article, and in like manner indemniIy him against
all present or Iuture partnership liabilities.
(3) A partner who has caused the dissolution wrongIully
shall have:

46
(a) II the business is not continued under the
provisions oI the second paragraph, No. 2, all the
rights oI a partner under the Iirst paragraph,
subject to liability Ior damages in the second
paragraph, No. 1 (b), oI this article.
(b) II the business is continued under the second
paragraph, No. 2, oI this article, the right as
against his co-partners and all claiming through
them in respect oI their interests in the partnership,
to have the value oI his interest in the partnership,
less any damage caused to his co-partners by the
dissolution, ascertained and paid to him in cash, or
the payment secured by a bond approved by the
court, and to be released Irom all existing
liabilities oI the partnership; but in ascertaining
the value oI the partner's interest the value oI the
good-will oI the business shall not be considered.
(n)
Art. 1838. Where a partnership contract is rescinded on the ground oI
the Iraud or misrepresentation oI one oI the parties thereto, the party
entitled to rescind is, without prejudice to any other right, entitled:
(1) To a lien on, or right oI retention oI, the surplus oI the
partnership property aIter satisIying the partnership
liabilities to third persons Ior any sum oI money paid by him
Ior the purchase oI an interest in the partnership and Ior any
capital or advances contributed by him;
(2) To stand, aIter all liabilities to third persons have been
satisIied, in the place oI the creditors oI the partnership Ior
any payments made by him in respect oI the partnership
liabilities; and
(3) To be indemniIied by the person guilty oI the Iraud or
making the representation against all debts and liabilities oI
the partnership. (n)
Art. 1839. In settling accounts between the partners aIter dissolution,
the Iollowing rules shall be observed, subject to any agreement to the
contrary:
(1) The assets oI the partnership are:

(a) The partnership property,
(b) The contributions oI the partners necessary Ior
the payment oI all the liabilities speciIied in No. 2.
(2) The liabilities oI the partnership shall rank in order oI
payment, as Iollows:

(a) Those owing to creditors other than partners,
(b) Those owing to partners other than Ior capital
and proIits,
(c) Those owing to partners in respect oI capital,
(d) Those owing to partners in respect oI proIits.
(3) The assets shall be applied in the order oI their
declaration in No. 1 oI this article to the satisIaction oI the
liabilities.
(4) The partners shall contribute, as provided by article
1797, the amount necessary to satisIy the liabilities.
(5) An assignee Ior the beneIit oI creditors or any person
appointed by the court shall have the right to enIorce the
contributions speciIied in the preceding number.
(6) Any partner or his legal representative shall have the
right to enIorce the contributions speciIied in No. 4, to the
extent oI the amount which he has paid in excess oI his share
oI the liability.
(7) The individual property oI a deceased partner shall be
liable Ior the contributions speciIied in No. 4.
(8) When partnership property and the individual properties
oI the partners are in possession oI a court Ior distribution,
partnership creditors shall have priority on partnership
property and separate creditors on individual property,
saving the rights oI lien or secured creditors.
(9) Where a partner has become insolvent or his estate is
insolvent, the claims against his separate property shall rank
in the Iollowing order:

(a) Those owing to separate creditors;
(b) Those owing to partnership creditors;
(c) Those owing to partners by way oI
contribution. (n)
Art. 1840. In the Iollowing cases creditors oI the dissolved partnership
are also creditors oI the person or partnership continuing the business:
(1) When any new partner is admitted into an existing
partnership, or when any partner retires and assigns (or the
representative oI the deceased partner assigns) his rights in
partnership property to two or more oI the partners, or to one
or more oI the partners and one or more third persons, iI the
business is continued without liquidation oI the partnership
aIIairs;
(2) When all but one partner retire and assign (or the
representative oI a deceased partner assigns) their rights in
partnership property to the remaining partner, who continues
the business without liquidation oI partnership aIIairs, either
alone or with others;
(3) When any partner retires or dies and the business oI the
dissolved partnership is continued as set Iorth in Nos. 1 and
2 oI this article, with the consent oI the retired partners or
the representative oI the deceased partner, but without any
assignment oI his right in partnership property;
(4) When all the partners or their representatives assign their
rights in partnership property to one or more third persons
47
who promise to pay the debts and who continue the business
oI the dissolved partnership;
(5) When any partner wrongIully causes a dissolution and
the remaining partners continue the business under the
provisions oI article 1837, second paragraph, No. 2, either
alone or with others, and without liquidation oI the
partnership aIIairs;
(6) When a partner is expelled and the remaining partners
continue the business either alone or with others without
liquidation oI the partnership aIIairs.
The liability oI a third person becoming a partner in the partnership
continuing the business, under this article, to the creditors oI the
dissolved partnership shall be satisIied out oI the partnership property
only, unless there is a stipulation to the contrary.
When the business oI a partnership aIter dissolution is continued under
any conditions set Iorth in this article the creditors oI the dissolved
partnership, as against the separate creditors oI the retiring or deceased
partner or the representative oI the deceased partner, have a prior right
to any claim oI the retired partner or the representative oI the deceased
partner against the person or partnership continuing the business, on
account oI the retired or deceased partner's interest in the dissolved
partnership or on account oI any consideration promised Ior such
interest or Ior his right in partnership property.
Nothing in this article shall be held to modiIy any right oI creditors to
set aside any assignment on the ground oI Iraud.
The use by the person or partnership continuing the business oI the
partnership name, or the name oI a deceased partner as part thereoI,
shall not oI itselI make the individual property oI the deceased partner
liable Ior any debts contracted by such person or partnership. (n)
Agency
Art. 1873. II a person specially inIorms another or states by public
advertisement that he has given a power oI attorney to a third person,
the latter thereby becomes a duly authorized agent, in the Iormer case
with respect to the person who received the special inIormation, and in
the latter case with regard to any person.
The power shall continue to be in Iull Iorce until the notice is
rescinded in the same manner in which it was given. (n)
Art. 1874. When a sale oI a piece oI land or any interest therein is
through an agent, the authority oI the latter shall be in writing;
otherwise, the sale shall be void. (n)
Art. 1875. Agency is presumed to be Ior a compensation, unless there
is prooI to the contrary. (n)
Art. 1876. An agency is either general or special.
The Iormer comprises all the business oI the principal. The latter, one
or more speciIic transactions. (1712)
Art. 1877. An agency couched in general terms comprises only acts oI
administration, even iI the principal should state that he withholds no
power or that the agent may execute such acts as he may consider
appropriate, or even though the agency should authorize a general and
unlimited management. (n)
Art. 1878. Special powers oI attorney are necessary in the Iollowing
cases:
(1) To make such payments as are not usually considered as
acts oI administration;
(2) To eIIect novations which put an end to obligations
already in existence at the time the agency was constituted;
(3) To compromise, to submit questions to arbitration, to
renounce the right to appeal Irom a judgment, to waive
objections to the venue oI an action or to abandon a
prescription already acquired;
(4) To waive any obligation gratuitously;
(5) To enter into any contract by which the ownership oI an
immovable is transmitted or acquired either gratuitously or
Ior a valuable consideration;
(6) To make giIts, except customary ones Ior charity or those
made to employees in the business managed by the agent;
(7) To loan or borrow money, unless the latter act be urgent
and indispensable Ior the preservation oI the things which
are under administration;
(8) To lease any real property to another person Ior more
than one year;
(9) To bind the principal to render some service without
compensation;
(10) To bind the principal in a contract oI partnership;
(11) To obligate the principal as a guarantor or surety;
(12) To create or convey real rights over immovable
property;
(13) To accept or repudiate an inheritance;
(14) To ratiIy or recognize obligations contracted beIore the
agency;
(15) Any other act oI strict dominion. (n)
Art. 1879. A special power to sell excludes the power to mortgage; and
a special power to mortgage does not include the power to sell. (n)
Art. 1881. The agent must act within the scope oI his authority. He
may do such acts as may be conducive to the accomplishment oI the
purpose oI the agency. (1714a)
Art. 1882. The limits oI the agent's authority shall not be considered
exceeded should it have been perIormed in a manner more
advantageous to the principal than that speciIied by him. (1715)
48
Art. 1883. II an agent acts in his own name, the principal has no right
oI action against the persons with whom the agent has contracted;
neither have such persons against the principal.
In such case the agent is the one directly bound in Iavor oI the person
with whom he has contracted, as iI the transaction were his own,
except when the contract involves things belonging to the principal.
The provisions oI this article shall be understood to be without
prejudice to the actions between the principal and agent.
Art. 1891. Every agent is bound to render an account oI his
transactions and to deliver to the principal whatever he may have
received by virtue oI the agency, even though it may not be owing to
the principal.
Art. 1892. The agent may appoint a substitute iI the principal has not
prohibited him Irom doing so; but he shall be responsible Ior the acts
oI the substitute:
(1) When he was not given the power to appoint one;
(2) When he was given such power, but without designating
the person, and the person appointed was notoriously
incompetent or insolvent.
All acts oI the substitute appointed against the prohibition oI the
principal shall be void. (1721)
Every stipulation exempting the agent Irom the obligation to render an
account shall be void. (1720a)
Art. 1898. II the agent contracts in the name oI the principal,
exceeding the scope oI his authority, and the principal does not ratiIy
the contract, it shall be void iI the party with whom the agent
contracted is aware oI the limits oI the powers granted by the principal.
In this case, however, the agent is liable iI he undertook to secure the
principal's ratiIication. (n)
Art. 1900. So Iar as third persons are concerned, an act is deemed to
have been perIormed within the scope oI the agent's authority, iI such
act is within the terms oI the power oI attorney, as written, even iI the
agent has in Iact exceeded the limits oI his authority according to an
understanding between the principal and the agent. (n)
Art. 1907. Should the commission agent receive on a sale, in addition
to the ordinary commission, another called a guarantee commission, he
shall bear the risk oI collection and shall pay the principal the proceeds
oI the sale on the same terms agreed upon with the purchaser. (n)
Art. 1909. The agent is responsible not only Ior Iraud, but also Ior
negligence, which shall be judged with more or less rigor by the
courts, according to whether the agency was or was not Ior a
compensation. (1726)
Art. 1910. The principal must comply with all the obligations which
the agent may have contracted within the scope oI his authority.
As Ior any obligation wherein the agent has exceeded his power, the
principal is not bound except when he ratiIies it expressly or tacitly.
(1727)
Art. 1911. Even when the agent has exceeded his authority, the
principal is solidarily liable with the agent iI the Iormer allowed the
latter to act as though he had Iull powers.
Art. 1919. Agency is extinguished:
(1) By its revocation;
(2) By the withdrawal oI the agent;
(3) By the death, civil interdiction, insanity or insolvency oI
the principal or oI the agent;
(4) By the dissolution oI the Iirm or corporation which
entrusted or accepted the agency;
(5) By the accomplishment oI the object or purpose oI the
agency;
(6) By the expiration oI the period Ior which the agency was
constituted. (1732a)
Art. 1927. An agency cannot be revoked iI a bilateral contract depends
upon it, or iI it is the means oI IulIilling an obligation already
contracted, or iI a partner is appointed manager oI a partnership in the
contract oI partnership and his removal Irom the management is
unjustiIiable. (n)
Art. 1930. The agency shall remain in Iull Iorce and eIIect even aIter
the death oI the principal, iI it has been constituted in the common
interest oI the latter and oI the agent, or in the interest oI a third person
who has accepted the stipulation in his Iavor. (n)
Art. 1931. Anything done by the agent, without knowledge oI the
death oI the principal or oI any other cause which extinguishes the
agency, is valid and shall be Iully eIIective with respect to third
persons who may have contracted with him in good Iaith. (1738)
Art. 1932. II the agent dies, his heirs must notiIy the principal thereoI,
and in the meantime adopt such measures as the circumstances may
demand in the interest oI the latter. (1739)

Title XI. - LOAN

GENERAL PROVISIONS

Art. 1933. By the contract oI loan, one oI the parties delivers to
another, either something not consumable so that the latter may use the
same Ior a certain time and return it, in which case the contract is
called a commodatum; or money or other consumable thing, upon the
condition that the same amount oI the same kind and quality shall be
paid, in which case the contract is simply called a loan or mutuum.
Commodatum is essentially gratuitous.
Simple loan may be gratuitous or with a stipulation to pay interest.
In commodatum the bailor retains the ownership oI the thing loaned,
while in simple loan, ownership passes to the borrower. (1740a)
49
Art. 1935. The bailee in commodatum acquires the used oI the thing
loaned but not its Iruits; iI any compensation is to be paid by him who
acquires the use, the contract ceases to be a commodatum. (1941a)
Art. 1936. Consumable goods may be the subject oI commodatum iI
the purpose oI the contract is not the consumption oI the object, as
when it is merely Ior exhibition. (n)
Art. 1937. Movable or immovable property may be the object oI
commodatum. (n)
Art. 1938. The bailor in commodatum need not be the owner oI the
thing loaned. (n)
Art. 1939. Commodatum is purely personal in character. Consequently:
(1) The death oI either the bailor or the bailee extinguishes
the contract;
(2) The bailee can neither lend nor lease the object oI the
contract to a third person. However, the members oI the
bailee's household may make use oI the thing loaned, unless
there is a stipulation to the contrary, or unless the nature oI
the thing Iorbids such use. (n)
Art. 1940. A stipulation that the bailee may make use oI the Iruits oI
the thing loaned is valid. (n)

Loan
Art. 1941. The bailee is obliged to pay Ior the ordinary expenses Ior
the use and preservation oI the thing loaned. (1743a)
Art. 1942. The bailee is liable Ior the loss oI the thing, even iI it should
be through a Iortuitous event:
(1) II he devotes the thing to any purpose diIIerent Irom that
Ior which it has been loaned;
(2) II he keeps it longer than the period stipulated, or aIter
the accomplishment oI the use Ior which the commodatum
has been constituted;
(3) II the thing loaned has been delivered with appraisal oI
its value, unless there is a stipulation exemption the bailee
Irom responsibility in case oI a Iortuitous event;
(4) II he lends or leases the thing to a third person, who is
not a member oI his household;
(5) II, being able to save either the thing borrowed or his
own thing, he chose to save the latter. (1744a and 1745)
Art. 1944. The bailee cannot retain the thing loaned on the ground that
the bailor owes him something, even though it may be by reason oI
expenses. However, the bailee has a right oI retention Ior damages
mentioned in Article 1951. (1747a)
Art. 1946. The bailor cannot demand the return oI the thing loaned till
aIter the expiration oI the period stipulated, or aIter the
accomplishment oI the use Ior which the commodatum has been
constituted. However, iI in the meantime, he should have urgent need
oI the thing, he may demand its return or temporary use.
In case oI temporary use by the bailor, the contract oI commodatum is
suspended while the thing is in the possession oI the bailor. (1749a)
Art. 1947. The bailor may demand the thing at will, and the contractual
relation is called a precarium, in the Iollowing cases:
(1) II neither the duration oI the contract nor the use to
which the thing loaned should be devoted, has been
stipulated; or
(2) II the use oI the thing is merely tolerated by the owner.
(1750a)
Art. 1953. A person who receives a loan oI money or any other
Iungible thing acquires the ownership thereoI, and is bound to pay to
the creditor an equal amount oI the same kind and quality. (1753a)
Art. 1956. No interest shall be due unless it has been expressly
stipulated in writing.
Deposit
Art. 1962. A deposit is constituted Irom the moment a person receives
a thing belonging to another, with the obligation oI saIely keeping it
and oI returning the same. II the saIekeeping oI the thing delivered is
not the principal purpose oI the contract, there is no deposit but some
other contract. (1758a)
Art. 1979. The depositary is liable Ior the loss oI the thing through a
Iortuitous event:
(1) II it is so stipulated;
(2) II he uses the thing without the depositor's permission;
(3) II he delays its return;
(4) II he allows others to use it, even though he himselI may
have been authorized to use the same. (n)
Art. 1980. Fixed, savings, and current deposits oI money in banks and
similar institutions shall be governed by the provisions concerning
simple loan. (n)
Art. 1990. II the depositary by Iorce majeure or government order
loses the thing and receives money or another thing in its place, he
shall deliver the sum or other thing to the depositor. (1777a)
Art. 1998. The deposit oI eIIects made by the travellers in hotels or
inns shall also be regarded as necessary. The keepers oI hotels or inns
shall be responsible Ior them as depositaries, provided that notice was
given to them, or to their employees, oI the eIIects brought by the
guests and that, on the part oI the latter, they take the precautions
50
which said hotel-keepers or their substitutes advised relative to the care
and vigilance oI their eIIects. (1783)
Art. 1999. The hotel-keeper is liable Ior the vehicles, animals and
articles which have been introduced or placed in the annexes oI the
hotel. (n)
Art. 2000. The responsibility reIerred to in the two preceding articles
shall include the loss oI, or injury to the personal property oI the guests
caused by the servants or employees oI the keepers oI hotels or inns as
well as strangers; but not that which may proceed Irom any Iorce
majeure. The Iact that travellers are constrained to rely on the vigilance
oI the keeper oI the hotels or inns shall be considered in determining
the degree oI care required oI him. (1784a)
Art. 2001. The act oI a thieI or robber, who has entered the hotel is not
deemed Iorce majeure, unless it is done with the use oI arms or
through an irresistible Iorce. (n)
Art. 2002. The hotel-keeper is not liable Ior compensation iI the loss is
due to the acts oI the guest, his Iamily, servants or visitors, or iI the
loss arises Irom the character oI the things brought into the hotel. (n)
Art. 2003. The hotel-keeper cannot Iree himselI Irom responsibility by
posting notices to the eIIect that he is not liable Ior the articles brought
by the guest. Any stipulation between the hotel-keeper and the guest
whereby the responsibility oI the Iormer as set Iorth in articles 1998 to
2001 is suppressed or diminished shall be void. (n)
Art. 2004. The hotel-keeper has a right to retain the things brought into
the hotel by the guest, as a security Ior credits on account oI lodging,
and supplies usually Iurnished to hotel guests.
Art. 1754. The provisions of Articles 1733 to 1753 shall
applv to the passenger´s baggage which is not in his personal custodv
or in that of his emplovee. As to other baggage, the rules in Articles
1998 and 2000 to 2003 concerning the responsibilitv of hotel-keepers
shall be applicable.
Art. 1980. Fixed, savings, and current deposits oI money in banks and
similar institutions shall be governed by the provisions concerning
simple loan. (n)
Insurance
Art. 2011. The contract oI insurance is governed by special laws.
Matters not expressly provided Ior in such special laws shall be
regulated by this Code. (n)
Art. 2012. Any person who is Iorbidden Irom receiving any donation
under Article 739 cannot be named beneIiciary oI a liIe insurance
policy by the person who cannot make any donation to him, according
to said article. (n)
Art. 739. The following donations shall be void.
(1) Those made between persons who were guiltv of adulterv
or concubinage at the time of the donation,
(2) Those made between persons found guiltv of the same
criminal offense, in consideration thereof,
(3) Those made to a public officer or his wife, descedants
and ascendants, bv reason of his office.
In the case referred to in No. 1, the action for declaration of nullitv
mav be brought bv the spouse of the donor or donee, and the guilt of
the donor and donee mav be proved bv preponderance of evidence in
the same action. (n)
Art. 2014. No action can be maintained by the winner Ior the
collection oI what he has won in a game oI chance. But any loser in a
game oI chance may recover his loss Irom the winner, with legal
interest Irom the time he paid the amount lost, and subsidiarily Irom
the operator or manager oI the gambling house. (1799a)
Art. 2016. II the loser reIuses or neglects to bring an action to recover
what has been lost, his or her creditors, spouse, descendants or other
persons entitled to be supported by the loser may institute the action.
The sum thereby obtained shall be applied to the creditors' claims, or
to the support oI the spouse or relatives, as the case may be. (n)
Art. 2018. II a contract which purports to be Ior the delivery oI goods,
securities or shares oI stock is entered into with the intention that the
diIIerence between the price stipulated and the exchange or market
price at the time oI the pretended delivery shall be paid by the loser to
the winner, the transaction is null and void. The loser may recover
what he has paid. (n)
Compromise
Art. 2034. There may be a compromise upon the civil liability arising
Irom an oIIense; but such compromise shall not extinguish the public
action Ior the imposition oI the legal penalty. (1813)
Art. 2035. No compromise upon the Iollowing questions shall be valid:
(1) The civil status oI persons;
(2) The validity oI a marriage or a legal separation;
(3) Any ground Ior legal separation;
(4) Future support;
(5) The jurisdiction oI courts; (6) Future legitime. (1814a)
Art. 2041. II one oI the parties Iails or reIuses to abide by the
compromise, the other party may either enIorce the compromise or
regard it as rescinded and insist upon his original demand. (n)
Guaranty
Art. 2047. By guaranty a person, called the guarantor, binds himselI to
the creditor to IulIill the obligation oI the principal debtor in case the
latter should Iail to do so.
II a person binds himselI solidarily with the principal debtor, the
provisions oI Section 4, Chapter 3, Title I oI this Book shall be
observed. In such case the contract is called a suretyship. (1822a)
51
Art. 1952. The bailor cannot exempt himselI Irom the payment oI
expenses or damages by abandoning the thing to the bailee. (n)

Art. 2058. The guarantor cannot be compelled to pay the creditor
unless the latter has exhausted all the property oI the debtor, and has
resorted to all the legal remedies against the debtor. (1830a)
Art. 2059. The excussion shall not take place:
(1) II the guarantor has expressly renounced it;
(2) II he has bound himselI solidarily with the debtor;
(3) In case oI insolvency oI the debtor;
(4) When he has absconded, or cannot be sued within the
Philippines unless he has leIt a manager or representative;
(5) II it may be presumed that an execution on the property
oI the principal debtor would not result in the satisIaction oI
the obligation. (1831a)
Art. 1959. Without prejudice to the provisions oI Article 2212, interest
due and unpaid shall not earn interest. However, the contracting parties
may by stipulation capitalize the interest due and unpaid, which as
added principal, shall earn new interest. (n)
Art. 2060. In order that the guarantor may make use oI the beneIit oI
exclusion, he must set it up against the creditor upon the latter's
demand Ior payment Irom him, and point out to the creditor available
property oI the debtor within Philippine territory, suIIicient to cover
the amount oI the debt. (1832)
Art. 2061. The guarantor having IulIilled all the conditions required in
the preceding article, the creditor who is negligent in exhausting the
property pointed out shall suIIer the loss, to the extent oI said property,
Ior the insolvency oI the debtor resulting Irom such negligence.
(1833a)
Art. 2062. In every action by the creditor, which must be against the
principal debtor alone, except in the cases mentioned in Article 2059,
the Iormer shall ask the court to notiIy the guarantor oI the action. The
guarantor may appear so that he may, iI he so desire, set up such
deIenses as are granted him by law. The beneIit oI excussion
mentioned in Article 2058 shall always be unimpaired, even iI
judgment should be rendered against the principal debtor and the
guarantor in case oI appearance by the latter. (1834a)
Art. 2063. A compromise between the creditor and the principal debtor
beneIits the guarantor but does not prejudice him. That which is
entered into between the guarantor and the creditor beneIits but does
not prejudice the principal debtor. (1835a)
Art. 2064. The guarantor oI a guarantor shall enjoy the beneIit oI
excussion, both with respect to the guarantor and to the principal
debtor.
Pledge and Mortgage
Art. 2085. The Iollowing requisites are essential to the contracts oI
pledge and mortgage:
(1) That they be constituted to secure the IulIillment oI a
principal obligation;
(2) That the pledgor or mortgagor be the absolute owner oI
the thing pledged or mortgaged;
(3) That the persons constituting the pledge or mortgage
have the Iree disposal oI their property, and in the absence
thereoI, that they be legally authorized Ior the purpose.
Third persons who are not parties to the principal obligation may
secure the latter by pledging or mortgaging their own property. (1857)
Art. 2087. It is also oI the essence oI these contracts that when the
principal obligation becomes due, the things in which the pledge or
mortgage consists may be alienated Ior the payment to the creditor.
Art. 2112. The creditor to whom the credit has not been
satisfied in due time, mav proceed before a Notarv Public to the sale
of the thing pledged. This sale shall be made at a public auction, and
with notification to the debtor and the owner of the thing pledged in a
proper case, stating the amount for which the public sale is to be held.
If at the first auction the thing is not sold, a second one with the same
formalities shall be held, and if at the second auction there is no sale
either, the creditor mav appropriate the thing pledged. In this case he
shall be obliged to give an acquittance for his entire claim. (1872a)
Art. 2115. The sale of the thing pledged shall extinguish the
principal obligation, whether or not the proceeds of the sale are equal
to the amount of the principal obligation, interest and expenses in a
proper case. If the price of the sale is more than said amount, the
debtor shall not be entitled to the excess, unless it is otherwise agreed.
If the price of the sale is less, neither shall the creditor be entitled to
recover the deficiencv, notwithstanding anv stipulation to the contrarv.
(n)
Art. 2088. The creditor cannot appropriate the things given by way oI
pledge or mortgage, or dispose oI them. Any stipulation to the contrary
is null and void. (1859a)
Art. 2094. All movables which are within commerce may be pledged,
provided they are susceptible oI possession. (1864)
Art. 2124. Only the Iollowing property may be the object oI a contract
oI mortgage:
(1) Immovables;
(2) Alienable real rights in accordance with the laws,
imposed upon immovables.
Nevertheless, movables may be the object oI a chattel mortgage.
(1874a)
Art. 2125. In addition to the requisites stated in Article 2085, it is
indispensable, in order that a mortgage may be validly constituted, that
the document in which it appears be recorded in the Registry oI
Property. II the instrument is not recorded, the mortgage is
nevertheless binding between the parties.
52
The persons in whose Iavor the law establishes a mortgage have no
other right than to demand the execution and the recording oI the
document in which the mortgage is Iormalized. (1875a)
Art. 2131. The Iorm, extent and consequences oI a mortgage, both as
to its constitution, modiIication and extinguishment, and as to other
matters not included in this Chapter, shall be governed by the
provisions oI the Mortgage Law and oI the Land Registration Law.
(1880a)

Antichresis
Art. 2132. By the contract oI antichresis the creditor acquires the right
to receive the Iruits oI an immovable oI his debtor, with the obligation
to apply them to the payment oI the interest, iI owing, and thereaIter to
the principal oI his credit. (1881)
Art. 2133. The actual market value oI the Iruits at the time oI the
application thereoI to the interest and principal shall be the measure oI
such application. (n)
Art. 2134. The amount oI the principal and oI the interest shall be
speciIied in writing; otherwise, the contract oI antichresis shall be
void. (n)
Art. 2135. The creditor, unless there is a stipulation to the contrary, is
obliged to pay the taxes and charges upon the estate.
He is also bound to bear the expenses necessary Ior its preservation
and repair.
The sums spent Ior the purposes stated in this article shall be deducted
Irom the Iruits. (1882)
Art. 2136. The debtor cannot reacquire the enjoyment oI the
immovable without Iirst having totally paid what he owes the creditor.
But the latter, in order to exempt himselI Irom the obligations imposed
upon him by the preceding article, may always compel the debtor to
enter again upon the enjoyment oI the property, except when there is a
stipulation to the contrary. (1883)

Art. 2140. By a chattel mortgage, personal property is recorded in the
Chattel Mortgage Register as a security Ior the perIormance oI an
obligation. II the movable, instead oI being recorded, is delivered to
the creditor or a third person, the contract is a pledge and not a chattel
mortgage. (n)
Negostiorum Gestio
Art. 2144. Whoever voluntarily takes charge oI the agency or
management oI the business or property oI another, without any power
Irom the latter, is obliged to continue the same until the termination oI
the aIIair and its incidents, or to require the person concerned to
substitute him, iI the owner is in a position to do so. This juridical
relation does not arise in either oI these instances:
(1) When the property or business is not neglected or
abandoned;
(2) II in Iact the manager has been tacitly authorized by the
owner.
In the Iirst case, the provisions oI Articles 1317, 1403, No. 1, and 1404
regarding unauthorized contracts shall govern.
In the second case, the rules on agency in Title X oI this Book shall be
applicable. (1888a)
Art. 2145. The oIIicious manager shall perIorm his duties with all the
diligence oI a good Iather oI a Iamily, and pay the damages which
through his Iault or negligence may be suIIered by the owner oI the
property or business under management.
The courts may, however, increase or moderate the indemnity
according to the circumstances oI each case. (1889a)
Art. 2146. II the oIIicious manager delegates to another person all or
some oI his duties, he shall be liable Ior the acts oI the delegate,
without prejudice to the direct obligation oI the latter toward the owner
oI the business.
The responsibility oI two or more oIIicious managers shall be solidary,
unless the management was assumed to save the thing or business
Irom imminent danger. (1890a)
Art. 2147. The oIIicious manager shall be liable Ior any Iortuitous
event:
(1) II he undertakes risky operations which the owner was
not accustomed to embark upon;
(2) II he has preIerred his own interest to that oI the owner;
(3) II he Iails to return the property or business aIter demand
by the owner;
(4) II he assumed the management in bad Iaith. (1891a)
Art. 2148. Except when the management was assumed to save property
or business Irom imminent danger, the oIIicious manager shall be
liable Ior Iortuitous events:
(1) II he is maniIestly unIit to carry on the management;
(2) II by his intervention he prevented a more competent
person Irom taking up the management. (n)
Art. 2149. The ratiIication oI the management by the owner oI the
business produces the eIIects oI an express agency, even iI the
business may not have been successIul. (1892a)
Art. 2150. Although the oIIicious management may not have been
expressly ratiIied, the owner oI the property or business who enjoys
the advantages oI the same shall be liable Ior obligations incurred in
his interest, and shall reimburse the oIIicious manager Ior the
necessary and useIul expenses and Ior the damages which the latter
may have suIIered in the perIormance oI his duties.
53
The same obligation shall be incumbent upon him when the
management had Ior its purpose the prevention oI an imminent and
maniIest loss, although no beneIit may have been derived. (1893)
Art. 2151. Even though the owner did not derive any beneIit and there
has been no imminent and maniIest danger to the property or business,
the owner is liable as under the Iirst paragraph oI the preceding article,
provided:
(1) The oIIicious manager has acted in good Iaith, and
(2) The property or business is intact, ready to be returned to
the owner. (n)
Art. 2152. The oIIicious manager is personally liable Ior contracts
which he has entered into with third persons, even though he acted in
the name oI the owner, and there shall be no right oI action between
the owner and third persons. These provisions shall not apply:
(1) II the owner has expressly or tacitly ratiIied the
management, or
(2) When the contract reIers to things pertaining to the
owner oI the business. (n)
Solutio Indebiti

Art. 2154. II something is received when there is no right to demand it,
and it was unduly delivered through mistake, the obligation to return it
arises. (1895)
Solutio Indebiti
Art. 2171. The rights and obligations oI the Iinder oI lost personal
property shall be governed by Articles 719 and 720.
Art. 719. Whoever finds a movable, which is not treasure,
must return it to its previous possessor. If the latter is unknown, the
finder shall immediatelv deposit it with the mavor of the citv or
municipalitv where the finding has taken place.
The finding shall be publiclv announced bv the mavor for two
consecutive weeks in the wav he deems best.
If the movable cannot be kept without deterioration, or without
expenses which considerablv diminish its value, it shall be sold at
public auction eight davs after the publication.
Six months from the publication having elapsed without the owner
having appeared, the thing found, or its value, shall be awarded to the
finder. The finder and the owner shall be obliged, as the case mav be,
to reimburse the expenses. (615a)
Art. 720. If the owner should appear in time, he shall be
obliged to pav, as a reward to the finder, one-tenth of the sum or of the
price of the thing found.
Quasi Delict
Art. 2174. When in a small community a nationality oI the inhabitants
oI age decide upon a measure Ior protection against lawlessness, Iire,
Ilood, storm or other calamity, any one who objects to the plan and
reIuses to contribute to the expenses but is beneIited by the project as
executed shall be liable to pay his share oI said expenses.
Art. 2175. Any person who is constrained to pay the taxes oI another
shall be entitled to reimbursement Irom the latter.

Art. 2176. Whoever by act or omission causes damage to another,
there being Iault or negligence, is obliged to pay Ior the damage done.
Such Iault or negligence, iI there is no pre-existing contractual relation
between the parties, is called a quasi-delict and is governed by the
provisions oI this Chapter. (1902a)
Art. 2177. Responsibility Ior Iault or negligence under the preceding
article is entirely separate and distinct Irom the civil liability arising
Irom negligence under the Penal Code. But the plaintiII cannot recover
damages twice Ior the same act or omission oI the deIendant. (n)
Art. 2178. The provisions oI Articles 1172 to 1174 are also applicable
to a quasi-delict. (n)
Art. 2179. When the plaintiII's own negligence was the immediate and
proximate cause oI his injury, he cannot recover damages. But iI his
negligence was only contributory, the immediate and proximate cause
oI the injury being the deIendant's lack oI due care, the plaintiII may
recover damages, but the courts shall mitigate the damages to be
awarded.
Art. 2180. The obligation imposed by Article 2176 is demandable not
only Ior one's own acts or omissions, but also Ior those oI persons Ior
whom one is responsible.
The Iather and, in case oI his death or incapacity, the mother, are
responsible Ior the damages caused by the minor children who live in
their company.
Guardians are liable Ior damages caused by the minors or incapacitated
persons who are under their authority and live in their company.
The owners and managers oI an establishment or enterprise are
likewise responsible Ior damages caused by their employees in the
service oI the branches in which the latter are employed or on the
occasion oI their Iunctions.
Employers shall be liable Ior the damages caused by their employees
and household helpers acting within the scope oI their assigned tasks,
even though the Iormer are not engaged in any business or industry.
The State is responsible in like manner when it acts through a special
agent; but not when the damage has been caused by the oIIicial to
whom the task done properly pertains, in which case what is provided
in Article 2176 shall be applicable.
Lastly, teachers or heads oI establishments oI arts and trades shall be
liable Ior damages caused by their pupils and students or apprentices,
so long as they remain in their custody.
54
The responsibility treated oI in this article shall cease when the persons
herein mentioned prove that they observed all the diligence oI a good
Iather oI a Iamily to prevent damage. (1903a)
Art. 2184. In motor vehicle mishaps, the owner is solidarily liable with
his driver, iI the Iormer, who was in the vehicle, could have, by the use
oI the due diligence, prevented the misIortune. It is disputably
presumed that a driver was negligent, iI he had been Iound guilty or
reckless driving or violating traIIic regulations at least twice within the
next preceding two months.
II the owner was not in the motor vehicle, the provisions oI Article
2180 are applicable. (n)
Art. 2187. ManuIacturers and processors oI IoodstuIIs, drinks, toilet
articles and similar goods shall be liable Ior death or injuries caused by
any noxious or harmIul substances used, although no contractual
relation exists between them and the consumers. (n)
Art. 2188. There is prima Iacie presumption oI negligence on the part
oI the deIendant iI the death or injury results Irom his possession oI
dangerous weapons or substances, such as Iirearms and poison, except
when the possession or use thereoI is indispensable in his occupation
or business. (n)
Art. 2189. Provinces, cities and municipalities shall be liable Ior
damages Ior the death oI, or injuries suIIered by, any person by reason
oI the deIective condition oI roads, streets, bridges, public buildings,
and other public works under their control or supervision. (n)
Art. 2190. The proprietor oI a building or structure is responsible Ior
the damages resulting Irom its total or partial collapse, iI it should be
due to the lack oI necessary repairs. (1907)
Art. 2191. Proprietors shall also be responsible Ior damages caused:
(1) By the explosion oI machinery which has not been taken
care oI with due diligence, and the inIlammation oI
explosive substances which have not been kept in a saIe and
adequate place;
(2) By excessive smoke, which may be harmIul to persons or
property;
(3) By the Ialling oI trees situated at or near highways or
lanes, iI not caused by Iorce majeure;
(4) By emanations Irom tubes, canals, sewers or deposits oI
inIectious matter, constructed without precautions suitable to
the place. (1908)
Art. 2194. The responsibility oI two or more persons who are liable Ior
quasi-delict is solidary.
Damages
Art. 2195. The provisions oI this Title shall be respectively applicable
to all obligations mentioned in Article 1157.
Art. 2196. The rules under this Title are without prejudice to special
provisions on damages Iormulated elsewhere in this Code.
Compensation Ior workmen and other employees in case oI death,
injury or illness is regulated by special laws. Rules governing damages
laid down in other laws shall be observed insoIar as they are not in
conIlict with this Code.
Art. 2197. Damages may be:
(1) Actual or compensatory;
(2) Moral;
(3) Nominal;
(4) Temperate or moderate;
(5) Liquidated; or
(6) Exemplary or corrective.
Art. 2198. The principles oI the general law on damages are hereby
adopted insoIar as they are not inconsistent with this Code.

ACTUAL OR COMPENSATORY DAMAGES

Art. 2199. Except as provided by law or by stipulation, one is entitled
to an adequate compensation only Ior such pecuniary loss suIIered by
him as he has duly proved. Such compensation is reIerred to as actual
or compensatory damages.
Art. 2201. In contracts and quasi-contracts, the damages Ior which the
obligor who acted in good Iaith is liable shall be those that are the
natural and probable consequences oI the breach oI the obligation, and
which the parties have Ioreseen or could have reasonably Ioreseen at
the time the obligation was constituted.
In case oI Iraud, bad Iaith, malice or wanton attitude, the obligor shall
be responsible Ior all damages which may be reasonably attributed to
the non-perIormance oI the obligation. (1107a)
Art. 2205. Damages may be recovered:
(1) For loss or impairment oI earning capacity in cases oI
temporary or permanent personal injury;
(2) For injury to the plaintiII's business standing or
commercial credit.
Art. 2206. The amount oI damages Ior death caused by a crime or
quasi-delict shall be at least three thousand pesos, even though there
may have been mitigating circumstances. In addition:
(1) The deIendant shall be liable Ior the loss oI the earning
capacity oI the deceased, and the indemnity shall be paid to
the heirs oI the latter; such indemnity shall in every case be
assessed and awarded by the court, unless the deceased on
account oI permanent physical disability not caused by the
deIendant, had no earning capacity at the time oI his death;
55
(2) II the deceased was obliged to give support according to
the provisions oI Article 291, the recipient who is not an heir
called to the decedent's inheritance by the law oI testate or
intestate succession, may demand support Irom the person
causing the death, Ior a period not exceeding Iive years, the
exact duration to be Iixed by the court;
(3) The spouse, legitimate and illegitimate descendants and
ascendants oI the deceased may demand moral damages Ior
mental anguish by reason oI the death oI the deceased.
Art. 2207. II the plaintiII's property has been insured, and he has
received indemnity Irom the insurance company Ior the injury or loss
arising out oI the wrong or breach oI contract complained oI, the
insurance company shall be subrogated to the rights oI the insured
against the wrongdoer or the person who has violated the contract. II
the amount paid by the insurance company does not Iully cover the
injury or loss, the aggrieved party shall be entitled to recover the
deIiciency Irom the person causing the loss or injury.
Art. 2208. In the absence oI stipulation, attorney's Iees and expenses oI
litigation, other than judicial costs, cannot be recovered, except:
(1) When exemplary damages are awarded;
(2) When the deIendant's act or omission has compelled the
plaintiII to litigate with third persons or to incur expenses to
protect his interest;
(3) In criminal cases oI malicious prosecution against the
plaintiII;
(4) In case oI a clearly unIounded civil action or proceeding
against the plaintiII;
(5) Where the deIendant acted in gross and evident bad Iaith
in reIusing to satisIy the plaintiII's plainly valid, just and
demandable claim;
(6) In actions Ior legal support;
(7) In actions Ior the recovery oI wages oI household
helpers, laborers and skilled workers;
(8) In actions Ior indemnity under workmen's compensation
and employer's liability laws;
(9) In a separate civil action to recover civil liability arising
Irom a crime;
(10) When at least double judicial costs are awarded;
(11) In any other case where the court deems it just and
equitable that attorney's Iees and expenses oI litigation
should be recovered.
In all cases, the attorney's Iees and expenses oI litigation must be
reasonable.
Art. 2209. II the obligation consists in the payment oI a sum oI money,
and the debtor incurs in delay, the indemnity Ior damages, there being
no stipulation to the contrary, shall be the payment oI the interest
agreed upon, and in the absence oI stipulation, the legal interest, which
is six per cent per annum. (1108)
Art. 2210. Interest may, in the discretion oI the court, be allowed upon
damages awarded Ior breach oI contract.
Art. 2211. In crimes and quasi-delicts, interest as a part oI the damages
may, in a proper case, be adjudicated in the discretion oI the court.
Art. 2214. In quasi-delicts, the contributory negligence oI the plaintiII
shall reduce the damages that he may recover.
Art. 2216. No prooI oI pecuniary loss is necessary in order that moral,
nominal, temperate, liquidated or exemplary damages, may be
adjudicated. The assessment oI such damages, except liquidated ones,
is leIt to the discretion oI the court, according to the circumstances oI
each case.

Moral Damages

Art. 2217. Moral damages include physical suIIering, mental anguish,
Iright, serious anxiety, besmirched reputation, wounded Ieelings,
moral shock, social humiliation, and similar injury. Though incapable
oI pecuniary computation, moral damages may be recovered iI they are
the proximate result oI the deIendant's wrongIul act Ior omission.
Art. 2218. In the adjudication oI moral damages, the sentimental value
oI property, real or personal, may be considered.
Art. 2219. Moral damages may be recovered in the Iollowing and
analogous cases:
(1) A criminal oIIense resulting in physical injuries;
(2) Quasi-delicts causing physical injuries;
(3) Seduction, abduction, rape, or other lascivious acts;
(4) Adultery or concubinage;
(5) Illegal or arbitrary detention or arrest;
(6) Illegal search;
(7) Libel, slander or any other Iorm oI deIamation;
(8) Malicious prosecution;
(9) Acts mentioned in Article 309;
(10) Acts and actions reIerred to in Articles 21, 26, 27, 28,
29, 30, 32, 34, and 35.
The parents oI the Iemale seduced, abducted, raped, or abused, reIerred
to in No. 3 oI this article, may also recover moral damages.
56
The spouse, descendants, ascendants, and brothers and sisters may
bring the action mentioned in No. 9 oI this article, in the order named.
Art. 2220. WillIul injury to property may be a legal ground Ior
awarding moral damages iI the court should Iind that, under the
circumstances, such damages are justly due. The same rule applies to
breaches oI contract where the deIendant acted Iraudulently or in bad
Iaith.

Nominal Damages

Art. 2221. Nominal damages are adjudicated in order that a right oI the
plaintiII, which has been violated or invaded by the deIendant, may be
vindicated or recognized, and not Ior the purpose oI indemniIying the
plaintiII Ior any loss suIIered by him.
Art. 2222. The court may award nominal damages in every obligation
arising Irom any source enumerated in Article 1157, or in every case
where any property right has been invaded.
Art. 2223. The adjudication oI nominal damages shall preclude Iurther
contest upon the right involved and all accessory questions, as between
the parties to the suit, or their respective heirs and assigns.

Temperate or Moderate Damages

Art. 2224. Temperate or moderate damages, which are more than
nominal but less than compensatory damages, may be recovered when
the court Iinds that some pecuniary loss has been suIIered but its
amount can not, Irom the nature oI the case, be provided with
certainty.
Art. 2225. Temperate damages must be reasonable under the
circumstances.

Liquidated Damages

Art. 2226. Liquidated damages are those agreed upon by the parties to
a contract, to be paid in case oI breach thereoI.
Art. 2227. Liquidated damages, whether intended as an indemnity or a
penalty, shall be equitably reduced iI they are iniquitous or
unconscionable.
Art. 2228. When the breach oI the contract committed by the
deIendant is not the one contemplated by the parties in agreeing upon
the liquidated damages, the law shall determine the measure oI
damages, and not the stipulation.

Exemplary or Corrective Damages

Art. 2229. Exemplary or corrective damages are imposed, by way oI
example or correction Ior the public good, in addition to the moral,
temperate, liquidated or compensatory damages.
Art. 2230. In criminal oIIenses, exemplary damages as a part oI the
civil liability may be imposed when the crime was committed with one
or more aggravating circumstances. Such damages are separate and
distinct Irom Iines and shall be paid to the oIIended party.
Art. 2231. In quasi-delicts, exemplary damages may be granted iI the
deIendant acted with gross negligence.
Art. 2232. In contracts and quasi-contracts, the court may award
exemplary damages iI the deIendant acted in a wanton, Iraudulent,
reckless, oppressive, or malevolent manner.
Art. 2233. Exemplary damages cannot be recovered as a matter oI
right; the court will decide whether or not they should be adjudicated.
Art. 2234. While the amount oI the exemplary damages need not be
proved, the plaintiII must show that he is entitled to moral, temperate
or compensatory damages beIore the court may consider the question
oI whether or not exemplary damages should be awarded. In case
liquidated damages have been agreed upon, although no prooI oI loss
is necessary in order that such liquidated damages may be recovered,
nevertheless, beIore the court may consider the question oI granting
exemplary in addition to the liquidated damages, the plaintiII must
show that he would be entitled to moral, temperate or compensatory
damages were it not Ior the stipulation Ior liquidated damages.
Art. 2235. A stipulation whereby exemplary damages are renounced in
advance shall be null and void
Preference & Concurrence of Credit
Art. 2241. With reIerence to speciIic movable property oI the debtor,
the Iollowing claims or liens shall be preIerred:
(1) Duties, taxes and Iees due thereon to the State or any
subdivision thereoI;
(2) Claims arising Irom misappropriation, breach oI trust, or
malIeasance by public oIIicials committed in the
perIormance oI their duties, on the movables, money or
securities obtained by them;
(3) Claims Ior the unpaid price oI movables sold, on said
movables, so long as they are in the possession oI the debtor,
up to the value oI the same; and iI the movable has been
resold by the debtor and the price is still unpaid, the lien may
be enIorced on the price; this right is not lost by the
immobilization oI the thing by destination, provided it has
not lost its Iorm, substance and identity; neither is the right
lost by the sale oI the thing together with other property Ior a
lump sum, when the price thereoI can be determined
proportionally;
(4) Credits guaranteed with a pledge so long as the things
pledged are in the hands oI the creditor, or those guaranteed
by a chattel mortgage, upon the things pledged or
mortgaged, up to the value thereoI;
(5) Credits Ior the making, repair, saIekeeping or
preservation oI personal property, on the movable thus
made, repaired, kept or possessed;
(6) Claims Ior laborers' wages, on the goods manuIactured
or the work done;
57
(7) For expenses oI salvage, upon the goods salvaged;
(8) Credits between the landlord and the tenant, arising Irom
the contract oI tenancy on shares, on the share oI each in the
Iruits or harvest;
(9) Credits Ior transportation, upon the goods carried, Ior the
price oI the contract and incidental expenses, until their
delivery and Ior thirty days thereaIter;
(10) Credits Ior lodging and supplies usually Iurnished to
travellers by hotel keepers, on the movables belonging to the
guest as long as such movables are in the hotel, but not Ior
money loaned to the guests;
(11) Credits Ior seeds and expenses Ior cultivation and
harvest advanced to the debtor, upon the Iruits harvested;
(12) Credits Ior rent Ior one year, upon the personal property
oI the lessee existing on the immovable leased and on the
Iruits oI the same, but not on money or instruments oI credit;
(13) Claims in Iavor oI the depositor iI the depositary has
wrongIully sold the thing deposited, upon the price oI the
sale.
In the Ioregoing cases, iI the movables to which the lien or
preIerence attaches have been wrongIully taken, the creditor
may demand them Irom any possessor, within thirty days
Irom the unlawIul seizure. (1922a)
Art. 2242. With reIerence to speciIic immovable property and real
rights oI the debtor, the Iollowing claims, mortgages and liens shall be
preIerred, and shall constitute an encumbrance on the immovable or
real right:
(1) Taxes due upon the land or building;
(2) For the unpaid price oI real property sold, upon the
immovable sold;
(3) Claims oI laborers, masons, mechanics and other
workmen, as well as oI architects, engineers and contractors,
engaged in the construction, reconstruction or repair oI
buildings, canals or other works, upon said buildings, canals
or other works;
(4) Claims oI Iurnishers oI materials used in the
construction, reconstruction, or repair oI buildings, canals or
other works, upon said buildings, canals or other works;
(5) Mortgage credits recorded in the Registry oI Property,
upon the real estate mortgaged;
(6) Expenses Ior the preservation or improvement oI real
property when the law authorizes reimbursement, upon the
immovable preserved or improved;
(7) Credits annotated in the Registry oI Property, in virtue oI
a judicial order, by attachments or executions, upon the
property aIIected, and only as to later credits;
(8) Claims oI co-heirs Ior warranty in the partition oI an
immovable among them, upon the real property thus
divided;
(9) Claims oI donors or real property Ior pecuniary charges
or other conditions imposed upon the donee, upon the
immovable donated;
(10) Credits oI insurers, upon the property insured, Ior the
insurance premium Ior two years. (1923a)
Art. 2243. The claims or credits enumerated in the two preceding
articles shall be considered as mortgages or pledges oI real or personal
property, or liens within the purview oI legal provisions governing
insolvency. Taxes mentioned in No. 1, Article 2241, and No. 1, Article
2242, shall Iirst be satisIied. (n)
Art. 2244. With reIerence to other property, real and personal, oI the
debtor, the Iollowing claims or credits shall be preIerred in the order
named:
(1) Proper Iuneral expenses Ior the debtor, or children under
his or her parental authority who have no property oI their
own, when approved by the court;
(2) Credits Ior services rendered the insolvent by employees,
laborers, or household helpers Ior one year preceding the
commencement oI the proceedings in insolvency;
(3) Expenses during the last illness oI the debtor or oI his or
her spouse and children under his or her parental authority, iI
they have no property oI their own;
(4) Compensation due the laborers or their dependents under
laws providing Ior indemnity Ior damages in cases oI labor
accident, or illness resulting Irom the nature oI the
employment;
(5) Credits and advancements made to the debtor Ior support
oI himselI or herselI, and Iamily, during the last year
preceding the insolvency;
(6) Support during the insolvency proceedings, and Ior three
months thereaIter;
(7) Fines and civil indemniIication arising Irom a criminal
oIIense;
(8) Legal expenses, and expenses incurred in the
administration oI the insolvent's estate Ior the common
interest oI the creditors, when properly authorized and
approved by the court;
(9) Taxes and assessments due the national government,
other than those mentioned in Articles 2241, No. 1, and
2242, No. 1;
(10) Taxes and assessments due any province, other than
those reIerred to in Articles 2241, No. 1, and 2242, No. 1;
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(11) Taxes and assessments due any city or municipality,
other than those indicated in Articles 2241, No. 1, and 2242,
No. 1;
(12) Damages Ior death or personal injuries caused by a
quasi-delict;
(13) GiIts due to public and private institutions oI charity or
beneIicence;
(14) Credits which, without special privilege, appear in (a) a
public instrument; or (b) in a Iinal judgment, iI they have
been the subject oI litigation. These credits shall have
preIerence among themselves in the order oI priority oI the
dates oI the instruments and oI the judgments, respectively.
(1924a)
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