Professional Documents
Culture Documents
PAGE 1
TABLE OF CONTENT
PAGE 2
TABLE OF CONTENT
PAGE 3
TABLE OF CONTENT
PAGE 4
UP LAW BOC
CIVIL LAW
Support ............................................ 63
Adoption ...........................................56
Marriage .............................................15
REQUISITES................................................ 15
EFFECT OF MARRIAGE CELEBRATED
ABROAD AND FOREIGN DIVORCE ............. 18
VOID AND VOIDABLE MARRIAGES ............ 19
GROUNDS ................................................. 29
DEFENSES ................................................. 30
WHEN TO FILE ........................................... 30
COOLING-OFF PERIOD AND
RECONCILIATION EFFORTS ...................... 30
CONFESSION OF JUDGMENT ..................... 31
EFFECTS OF FILING PETITION ................... 31
EFFECTS OF PENDENCY............................. 31
EFFECTS OF LEGAL SEPARATION ............. 31
RECONCILIATION ....................................... 31
UP LAW BOC
PROPERTY
CIVIL LAW
IN GENERAL .............................................101
PURPOSE ..................................................101
NATURE: QUASI IN REM .......................... 102
JUSTIFICATIONS FOR QUIETING OF TITLE
.................................................................. 102
THE ACTION TO QUIET TITLE DOES NOT
APPLY ....................................................... 102
REQUIREMENTS ....................................... 102
QUIETING OF TITLE V. REMOVAL OF CLOUD
.................................................................. 103
PRESCRIPTION/NON-PRESCRIPTION OF
ACTION ..................................................... 103
Accession ..........................................94
Ownership ........................................ 90
Characteristics .................................. 83
Classification .................................... 83
SUSPENSION OR TERMINATION OF
PARENTAL AUTHORITY ............................ 69
Emancipation, as amended by
RA6809.............................................. 71
Summary Judicial Proceedings in the
Family Law ......................................... 71
PROCEDURAL RULES ................................ 71
SEPARATION IN FACT ................................ 61
INCIDENTS INVOLVING PARENTAL
AUTHORITY ................................................ 72
Absence............................................. 74
PROVISIONAL MEASURES IN CASE OF
ABSENCE ....................................................75
SUBSEQUENT MARRIAGE CONTRACTED
WHEN ONE SPOUSE IS ABSENT ................75
DECLARATION OF ABSENCE......................75
ADMINISTRATION OF THE PROPERTY OF
THE ABSENTEE .......................................... 77
PRESUMPTION OF DEATH ......................... 77
UP LAW BOC
CIVIL LAW
SALES
Contracts.......................................... 191
OBLIGATIONS AND
CONTRACTS
Nuisance ............................................. 71
NUISANCE V. TRESPASS .............................. 141
NUISANCE V. NEGLIGENCE .......................... 142
CLASSES .................................................... 142
DOCTRINE OF ATTRACTIVE NUISANCE ........ 142
LIABILITY IN CASE OF NUISANCE ................. 142
REGULATION OF NUISANCES ...................... 143
UP LAW BOC
CIVIL LAW
SUCCESSION
Warranties.......................................234
Price................................................. 216
MEANING OF PRICE ................................. 216
REQUISITES FOR A VALID PRICE ............. 216
UP LAW BOC
CIVIL LAW
Obligations of the
Partnership/Partners to Third
Persons........................................... 308
......................................................... 308
......................................................... 306
......................................................... 304
......................................................... 304
......................................................... 304
AGENCY AND
PARTNERSHIP
AGENCY ......................................... 298
Contract of Partnership ................ 298
DEFINITION........................................ 298
ESSENTIAL FEATURES ........................ 298
PARTIES ............................................ 298
OBJECT .............................................. 298
FORM ................................................ 299
DURATION ......................................... 299
RULES TO DETERMINE EXISTENCE ....... 299
KINDS................................................ 300
KINDS OF PARTNERS .......................... 300
PARTNERSHIP AND OTHER CONTRACTS
DISTINGUISHED .................................. 301
.......................................................... 310
LIABILITY OF THE OTHER PARTNERS
UNDER ART. 1822 AND 1823 .................. 311
LIABILITY IN CASE OF PARTNERSHIP BY
ESTOPPEL ............................................ 311
UP LAW BOC
CIVIL LAW
......................................................... 340
......................................................... 339
.......................................................... 337
IN GENERAL ........................................335
OBLIGATION TO CARRY OUT AGENCY ....335
OBLIGATION WHEN AGENT DECLINES ...335
OBLIGATION TO ADVANCE NECESSARY
FUNDS................................................335
OBLIGATION TO ACT IN ACCORDANCE
WITH INSTRUCTIONS ...........................336
OBLIGATION TO PREFER INTEREST OF
PRINCIPAL ..........................................336
OBLIGATION FOR THINGS RECEIVED .....336
RESPONSIBILITY FOR ACTS OF SUBSTITUTE
.......................................................... 318
10
UP LAW BOC
CIVIL LAW
CREDIT TRANSACTIONS
Credit Transactions .......................346
SECURITY ............................................... 346
TYPES OF CONTRACTS OF SECURITY .... 346
Loan.................................................346
COMMODATUM [NCC 1935-1952] .............. 347
INTEREST AND SUSPENSION OF USURY
LAW ......................................................... 348
Pledge .............................................359
CHARACTERISTICS ................................. 360
KINDS ...................................................... 360
ESSENTIAL REQUISITES ......................... 360
PROVISIONS APPLICABLE ONLY TO PLEDGE
................................................................. 360
OBLIGATIONS OF PLEDGEE .................... 360
RIGHTS OF PLEDGOR............................... 361
UP LAW BOC
CIVIL LAW
CONCEPT ..................................................392
WHEN APPLICABLE..................................392
WHO MAY APPLY .....................................392
FILING OF THE APPLICATION .................. 393
PROCEDURE IN JUDICIAL CONFIRMATION
.................................................................. 393
EVIDENCE NECESSARY TO SUBSTANTIATE
APPLICATION ........................................... 393
Original Registration......................384
INDIVIDUALS............................................383
CORPORATIONS ..................................... 384
CONCEPT ..................................................382
EFFECTS ...................................................382
CONCEPT OF NATIVE TITLE, TIME
IMMEMORIAL POSSESSION.....................383
12
CIVIL LAW
UP LAW BOC
13
UP LAW BOC
14
CIVIL LAW
PAGE 15
UP LAW BOC
CIVIL LAW
Exceptions:
(1) If the waiver is contrary to law, public order,
public policy, morals or good customs;
(2) If the waiver prejudices a third person;
(3) If the alleged rights do not yet exist;
(4) If the right is a natural right.
WAIVER OF RIGHTS
Exceptions to Exception:
(1) Ex post facto law
(2) Impairment of contract
(3) In case of remedial statutes
(4) In case of curative statutes
(5) In case of laws interpreting others
(6) In case of laws creating new rights [(Bona v.
Briones (1918)]
(7) Penal laws favorable to the accused
RETROACTIVITY OF LAWS
PAGE 1
UP LAW BOC
REPEAL OF LAWS
CIVIL LAW
LEGAL PERIODS
Exception:
This article does not apply to criminal
prosecutions because where there is no law
punishing an act, the case must be dismissed.
[Tolentino]
JUDICIAL DECISIONS
Art. 8, CC. Judicial decisions applying or
interpreting the laws or the Constitution shall
form a part of the legal system of the
Philippines.
Jurisprudence cannot be considered as an
independent source of law; it cannot create law.
[1 Camus 38 as cited in Tolentino]
General Rule:
PAGE 2
UP LAW BOC
CIVIL LAW
RULE ON PROPERTY
However,
intestate
and
testamentary
succession, both with respect to the order of
succession and to the amount of successional
rights and to the intrinsic validity of
testamentary provisions, shall be regulated by
the national law of the person whose succession
is under consideration, whatever may be the
nature of the property and regardless of the
country wherein the property may be found.
EXEMPTIONS UNDER
INTERNATIONAL LAW (THEORY OF
EXTRATERRITORIALITY):
PRIVATE
CONFLICT OF LAWS
CONFLICT OF LAWS/
INTERNATIONAL LAW
(1) It is a branch or part of Philippine Law which
regulates the application of foreign law
within Philippine jurisdiction in the
resolution of cases involving foreign
elements.
(2) It is that part of municipal law which
governs cases involving a foreign element.
(3) Private International Law is more commonly
known in other jurisdictions as conflict of
laws
SOURCES
(1) Codes and statutes
(2) Treaties and international conventions
(3) Treatises, commentaries, and studies of
learned societies
(4) Judicial decisions
(1)
(2)
(3)
(4)
(5)
(6)
(7)
PAGE 3
UP LAW BOC
CIVIL LAW
Applicable Law
Filipino Testator
Philippine Law
(1) Law of the place
where he may be
(lex
loci
celebrationis) [Art
815, CC]
(2) Philippine law [III
Tolentino 117]
Philippines
Alien Testator
INTRINSIC VALIDITY
Intestate and testamentary successions shall be
regulated by the national law of the decedent,
Foreign Country
Philippines
Place of Execution
RULE ON SUCCESSION
PAGE 4
UP LAW BOC
CIVIL LAW
TRUSTS
Extrinsic validity: Rule governing wills apply.
Intrinsic validity: lex situs since a trust involves
property [Art. 17, CC]
ADMINISTRATION OF ESTATES
Territorial: governed by the law of the place
where the administration takes place, and that
is the law of the country from which the
administrator derives his authority.
Applicable Law
INTERPRETATION OF WILLS
Governed by the National Law of the decedent.
REVOCATION
Testator
Philippine Law
PAGE 5
UP LAW BOC
CIVIL LAW
DEFINITION
MARRIAGE
Based
on
the
contemporaneous and subsequent acts
of the parties; often upheld with
reference to the rule of validity of
contracts which presumes that the
parties contemplate to enter into a valid
contract
CONTRACTS BEFORE
DIPLOMATIC/CONSULAR OFFICIALS
The solemnities established by Philippine laws
shall be observed with respect to contracts
executed before diplomatic or consular officials
of the Republic of the Philippines in a foreign
country [Art. 17(2), FC]
CONTRACTS ENTERED INTO BY LETTER/
CABLEGRAM, ETC.
A contract accepted by letter or cablegram is
presumed to have been entered into at the
place where the offer was made. (Art. 1319(2))
THREE POSSIBLE LAWS
(1) Lex Loci Contractus Law of the place where
the contract is made
(a) Advantages
(i) Relative ease in establishing
(ii) Certainty and stability
(b) Disadvantage: Unjust results when
place of making is entirely incidental
Note: To determine where the contract is
made, we look to the place where the last
act is done which is necessary to bring the
binding agreement into being so far as the
acts of the parties are concerned.
(2) Lex Loci Solutionis Law of the place of
performance governs
(a) Advantage Always connected to the
contract in a significant way
(b) Disadvantage Not helpful when the
contract is performed in 2 or more
states with conflicting laws
(3) Lex Loci Intentionis Law intended by the
parties
Basis: 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 [Art. 1306, CC]
May be express or implied
(a) Express when the parties stipulate
that the contract be governed by a
specific law, such law will be recognized
PAGE 6
UP LAW BOC
CIVIL LAW
PAGE 7
UP LAW BOC
CIVIL LAW
Rule is inapplicable:
(i) If both spouses are aliens
(ii) With respect to the extrinsic validity
of the contracts affecting property
not situated in the Philippines and
executed in the country where the
property is located
(iii) With respect to the extrinsic validity
of contracts entered into in the
Philippines but affecting property
situated in a foreign country whose
laws require different formalities for
its extrinsic validity.
(3) Doctrine of Immutability of Matrimonial
Property Regime The change of nationality
on the part of the husband or wife does not
affect the original property regime except
when the law of the original nationality
itself changes the marital regime, hence,
the property regime has to change
accordingly.
Property relations
(1) The Hague Convention declares that the
governing law on matrimonial property is:
(a) The internal law designated by the
spouses before the marriage
(b) In the absence thereof, the internal law
of the state in which the spouses fix
their habitual residence
(2) Rule under Philippine law (Art. 80, FC)
(a) In the absence of a contrary stipulation
in the marriage settlements, the
property relations of the spouses shall
be governed by Philippine laws,
regardless of the place of the
celebration of the marriage and their
residence.
PAGE 8
UP LAW BOC
JURISDICTION TO ANNUL
(1) Lex loci celebrationis; or
(2) Place of matrimonial domicile
CIVIL LAW
PAGE 9
UP LAW BOC
OF
Juridical Capacity
Fitness of man to be the
subject of legal relations
Passive
Aptitude for the Holding
and Enjoyment of rights
Inherent in natural persons
Lost upon death
Can exist without capacity
to act
Cannot be limited or
restricted
CIVIL LAW
UNJUST
Art. 2154
(Solutio Indebiti)
Capacity to Act
Power to do acts with
legal effect
Active
Aptitude for the
Exercise of rights
Must be acquired
Lost through death
and other causes
Must
exist
with
juridical capacity
May be restricted or
limited
CIVIL PERSONALITY
CAPACITY TO ACT
Art. 22
(Accion in Rem Verso)
PRINCIPLE
ENRICHMENT
GOVERNING LAW
(1) Lex loci celebrationis determines the
consequences of any defect as to form
(2) In general, the same applies with reference
to substantive or intrinsic validity. But with
regard to capacity of the parties to marry,
national law is determinative.
Human Relations
ABUSE OF RIGHT
Art. 19, CC. Every person must, in the exercise of
his rights and in the performance of his duties,
act with justice, give everyone his due, and
observe honesty and good faith.
PAGE 10
CIVIL LAW
DEATH
UP LAW BOC
BIRTH
Art. 42, CC. Civil personality is extinguished by
death. The effect of death upon the rights and
obligations of the deceased is determined by
law, by contract and by will.
In any circumstance
Art. 43
Rule 131, Sec. 3 (jj)
Only use the presumptions when there are no
facts to get inferences from
Only
use
for Cannot be used for
succession purposes
succession purposes
Only during death in
calamities,
wreck,
battle or conflagration
PAGE 11
UP LAW BOC
CIVIL LAW
Effects on Marriage
May not yet contract marriage [Art. 5, FC].
When
a
minor
made
no
active
misrepresentation as to his minority and such
minority is known to the other party, the
contract is voidable [Art. 1403, CC] as to the
minor. [Bambalan v. Maramba, (1928)]
Estoppel
works
against
minors
who
misrepresent their ages in a contract and are
compelled to comply with its terms. (active
misrepresentation done by minors). [Mercado v.
Espiritu, (1918)]
Effects on Contracts
(1) They cannot give consent to a contract [Art.
1327 (1), CC]
(2) A contract where one of the parties is a
minor is voidable [Art. 1390(1), CC]
(3) A contract is unenforceable when both of
the parties are minors (incapable of giving
consent) [Art. 1403(3), CC]
(4) Minority cannot be asserted by the other
party in an action for annulment [Art. 1397,
CC]
(5) Not obliged to make restitution except
insofar as he has been benefited [Art. 1399,
CC]
(6) Minor has no right to demand the
thing/price voluntarily returned by him [Art.
1426, CC]
(7) Minor has no right to recover voluntarily
paid sum or delivered thing, if consumed in
good faith [Art. 1427, CC]
(8) Must pay reasonable amount for
necessaries delivered to him [Art. 1489, CC]
MINORITY
RA 6809 (1989) An act lowering the age of
majority from twenty-one to eighteen years.
Older
Male
One under 15
Presumed Survivor
Older
Younger
PAGE 12
CIVIL LAW
Effect on Crimes
General rule: Exempted from criminal liability.
Cannot be a witness to the execution of a will
[Art. 820, CC]
UP LAW BOC
INSANITY
Insanity includes many forms of mental disease,
either inherited or acquired. A person may not
be insane but only mentally deficient (idiocy,
imbecility, feeble-mindedness).
FAMILY RELATIONS
Justifying circumstance if acted in defense of
person/rights
of
spouse,
ascendants,
descendants, brothers/sisters, and other
relatives up to the 4th civil degree [Art. 11(2),
RPC]
CIVIL INTERDICTION
PRODIGALITY
A spendthrift or a prodigal is a person, who, by
excessive drinking, gambling, idleness or
debauchery of any kind shall so spend, waste or
lessen his estate as to expose himself or his
family to want or suffering. The acts of
prodigality must show a morbid state of mind.
[Martinez v. Martinez, (1902)]
Effect on Contracts
(1) Incapacity to give consent to a contract [Art.
1327(2), CC]
(2) Contracts entered into during lucid intervals
are valid [Art. 1328, CC]
(3) Restitution of benefits [Art. 1399, CC]
(4) Voidable if one of the parties is insane [Art.
1390, CC]
(5) Unenforceable if both of the parties are
insane [Art. 1403 (3), CC]
Effect on Crimes
General rule: Exempted from criminal liability
Exception: Acted during lucid interval
Effect on Marriage
May be annulled if either party was of unsound
mind unless the such party after coming to
reason, freely cohabited with the other [Art.
45(2), FC]
Action for annulment of marriage must be filed
by the sane spouse who had no knowledge of
the others insanity, or by any relative/guardian
of the insane before the death of either party; or
by the insane spouse during a lucid interval or
after regaining sanity [Art. 47(2), FC]
STATE OF BEING DEAF-MUTE
Cannot give consent to a contract if he/she also
does not know how to write [Art. 1327(2), CC]
Voidable if one of the parties is deaf-mute and
does not know how to write
Unenforceable if both of the parties are deafmutes and does not know how to write
Can make a valid will, provided: he must
personally read the will. The contents of the
same have either been read personally by him
PAGE 13
UP LAW BOC
CIVIL LAW
PAGE 14
UP LAW BOC
CIVIL LAW
KINDS OF REQUISITES
KINDS OF DOMICILE
(1) Domicile of Origin Domicile of parents of
a person at the time he was born.
(2) Domicile of Choice Domicile chosen by a
person, changing his domicile of origin.
A 3rd requisite is necessary: intention not to
return to ones domicile as his permanent
place.
(3) Domicile by Operation of Law (i.e., Article
69, domicile of minor)
A married woman does not lose her
domicile to her husband. [RomualdezMarcos vs. Comelec (1995)]
Family Code
The Family Code took effect on August 3, 1988.
Marriage
REQUISITES
NATURE OF MARRIAGE
Art. 1, FC. Marriage is a special contract of
permanent union between a man and a woman
entered into in accordance with law for the
establishment of conjugal and family life. It is
the foundation of the family and an inviolable
social institution whose nature, consequences,
and incidents are governed by law and not
PAGE 15
UP LAW BOC
CIVIL LAW
CEREMONY
No prescribed form or religious rite for the
solemnization of marriage is required. [Art. 6,
FC]
Defect or Irregularity
Voidable
ESSENTIAL REQUISITES
AGE
Legal Capacity Male or female 18 years old
and above, not under any of the impediments
mentioned in Art. 37 (incestuous marriages) &
Art. 38 (marriages against public policy), may
contract marriage. [Art. 5, FC]
MUST BE MALE AND FEMALE
Changing of sex in ones birth certificate on the
basis of sex reassignment was denied;
otherwise, it would result in confusion and
would allow marriage between persons of the
same sex which is in defiance of the law, as
marriage is a union between a man and a
woman. [Silverio v. Republic, (2007)]
Note: The best source for citing the requirement
of male/female is still statutory, as provided
explicitly in the Family Code.
CONSENT FREELY GIVEN
Consent here refers to the consent of the
contracting parties; not of the parent/guardian
in those cases where such consent is required
(when either party is between 18 to 21 years of
age).
Absence
A marriage entered into by a person whose real
intent is to avoid prosecution for rape is void for
total lack of consent. The accused did not
intend to be married. He merely used such
marriage to escape criminal liability. [People v.
Santiago, (1927)]
Defect
Art. 45, FC. A marriage may be annulled for any
of the following causes existing at the time of
the marriage: xxx (3) that the consent of either
party was obtained by fraud, unless such party
afterwards, with full knowledge of the facts
constituting the fraud, freely cohabited with the
other as husband and wife.
PAGE 16
CIVIL LAW
Exceptions:
(1) Marriages performed in articulo mortis or in
remote places. [Art. 29, FC]
(2) Where both parties request in writing that
marriage be solemnized at a place
designated by them.
UP LAW BOC
Foreign National
When either or both parties are foreign
nationals: Certificate of legal capacity to contract
marriage, issued by a diplomatic or consular
official, shall be submitted before a marriage
license can be obtained [Art. 21, FC]
General rule
License required
Issued by local registrar of city or municipality
where either contracting party habitually resides
[Art. 9, FC]
LICENSE REQUIRED
IRREGULARITY
Effect
VOID
VOID
IRREGULARITY
PAGE 17
UP LAW BOC
CIVIL LAW
Exceptions:
(1) Marriage between persons below 18 years
old [Art. 35(1), FC]
(2) Bigamous or polygamous marriage [Art.
35(4), FC]
(3) Mistake in identity [Art. 35 (5), FC]
EFFECT
OF
MARRIAGES
CELEBRATED ABROAD AND
FOREIGN DIVORCE
Exceptions
(1) Marriage in Articulo mortis [Art. 27, FC]
The marriage may be solemnized without
the necessity of a marriage license.
It remains valid even if ailing party
survives.
(2) Between passengers or crew members in a
ship or airplane [Art. 31, FC]
(3) Persons within a military zone [Art. 32, FC]
(4) Marriage in Remote and inaccessible places
[Art. 28, FC]
(5) Marriages by Muslims and Ethnic cultural
minorities provided they are solemnized in
accordance with their customs, rites or
practices. [Art. 33, FC]
(6) Marriage by parties who have Cohabited for
at least 5 years without any legal
impediment to marry each other. [Art. 34,
FC; Ninal vs. Badayog (2000)]
Requisites for the 5-year cohabitation to be valid
for the exemption from acquiring a marriage
license:
(1) The man and woman must have been living
together as husband and wife for at least
five years before the marriage;
(2) The parties must have no legal impediment
to marry each other;
(3) The fact of absence of legal impediment
between the parties must be present at the
time of marriage;
(4) The parties must execute an affidavit
stating that they have lived together for at
least five years [and are without legal
impediment to marry each other]; and
(5) The solemnizing officer must execute a
sworn statement that he had ascertained
the qualifications of the parties and that he
had found no legal impediment to their
marriage. [Borja-Manzano v. Judge Sanchez
(2001)]
MARRIAGE CERTIFICATE
Absence and irregularity of marriage license
and contract
There is a presumption of regularity of official
acts, and the issuance of the Civil Registrar of a
Certificate of Due Search and Inability to Find
the application for a marriage license certifies
PAGE 18
UP LAW BOC
CIVIL LAW
VOIDABLE
PRESUMPTION OF MARRIAGE
VOID
AND
MARRIAGES
Formal requisites
Requirements
independent of the
parties
Lex loci celebrationis if
valid where celebrated,
then valid everywhere;
forms of contracting
marriage are to be
regulated by the law
where it is celebrated.
[Art. 26, FC]
FOREIGN DIVORCES
Those obtained by Filipino citizens are void
under Philippine law.
If the foreign spouse obtains a valid divorce
decree abroad capacitating him/her to remarry,
the Filipino spouse shall have capacity to
remarry under Philippine law. [Art. 26, FC]
A divorce obtained by the foreign spouse in
accordance with the said spouses national law
is recognized in the Philippines and releases
Filipino spouse from their marriage. [Van Dorn v.
Romillo (1985)]
The citizenship of the spouses at the time of the
divorce determines their capacity to obtain a
valid divorce. [Quita v. Dandan (1998)]
PAGE 19
UP LAW BOC
VOID MARRIAGES
CIVIL LAW
Molina Guidelines:
(1) The burden of proof to show the nullity of
the marriage belongs to the plaintiff. This is
to be investigated by the OSG for collusion.
(2) The root cause of the psychological
incapacity must be: (a) medically or clinically
identified, (b) alleged in the complaint, (c)
sufficiently proven by the experts, (d) clearly
explained in the decision.
(3) The incapacity must be proven to be existing
at the time of the celebration of the
marriage.
(4) Such incapacity must also be shown to be
medically or clinically permanent or
incurable.
(5) Such illness must be grave enough to bring
about the disability of the party to assume
the essential obligations of marriage.
(6) The essential marital obligations must be
those embraced by Articles 68 up to 71 of
the Family Code as regards the husband
and wife as well as Articles 220, 221, and
225 of the same Code in regard to parents
and their children.
(7) Interpretations given by the National
Appellate Matrimonial Tribunal of the
Catholic Church in the Philippines, while not
controlling/decisive, should be given great
respect by our courts.
(8) The trial court must order the prosecuting
attorney or fiscal and the Solicitor General to
appear as counsel for the state. No decision
shall be handed down unless the Solicitor
General issues a certification. [Republic v.
Molina, (1997)]
PAGE 20
UP LAW BOC
CIVIL LAW
Non-Recording
Subsequent marriage of spouses, where the
requirements of recording under Art. 52 have
not have been complied with, shall be null and
void. [Art. 53, FC]
Presumptive Death
Failure of the spouse present to obtain a judicial
declaration of presumptive death before
entering a subsequent marriage [Art. 41, FC]
PAGE 21
UP LAW BOC
CIVIL LAW
PAGE 22
UP LAW BOC
CIVIL LAW
Civil Code
under
PAGE 23
UP LAW BOC
OR
CIVIL LAW
ANNULLABLE
VOIDABLE
MARRIAGE
PAGE 24
UP LAW BOC
CIVIL LAW
Art. 45 STD
Art. 46 STD
The STD is a type of
Ground for annulment fraud which is a
ground for annulment
Does not have to be
Must be concealed
concealed
Must be serious and Need not be serious
incurable
nor incurable
It is the concealment
The STD itself is the
that gives rise to the
ground for annulment
annulment
Concealment of pregnancy
Fraud against very essence of marriage;
importance of procreation of children; an
assault to the integrity of the union by
introducing alien blood
If husband knew of pregnancy, the marriage
cannot be annulled on the ground of
concealment
Fraud
Only those enumerated in Art. 46:
(1) Non-disclosure of previous conviction by
final judgment of a crime involving moral
turpitude
(2) Concealment by wife at the time of
marriage, that she was pregnant by another
man
(3) Concealment of STD regardless of nature
existing at time of marriage
(4) Concealment of drug addiction, habitual
alcoholism, homosexuality, lesbianism
existing at time of marriage
Action to Annul
Action in rem, concerns status of parties; res is
relation between parties or marriage tie;
jurisdiction depends on nationality or domicile
not the place of celebration.
GROUNDS FOR ANNULMENT EXPLAINED
Lack of parental consent
18 x < 21 without parental consent
Ratified by party 18 or above but below 21
upon free cohabitation upon reaching 21.
Parents whose consents were wanting may
ratify before 21; this right can be waived;
however, the Code Commission believes that
no such ratification can be made by the
parent. [Tolentino]
In defending the requirement of parental
consent, the Court held that the State has
power to make adjustments in the
constitutional rights of minors based on the
following grounds: 1) the peculiar vulnerability
of children, 2) to protect minors from immature
decision making and prevent unstable
marriages, 3) on the presumption that parents
act in the best interests of their children in child
rearing. [Moe v. Dinkins, (1981)]
Insanity
Mental incapacity or insanity is a vice of
consent; insanity
(1) of varying degrees
(2) curable being an illness capable of
ratification or convalidation
(3) has lucid intervals
(4) ground only for annulment in many
countries
Can be ratified by cohabitation after insanity is
cured or during a lucid interval
Mere mental weakness is not a ground for
annulment, but if found grave enough, it may
amount to psychological incapacity.
Intoxication, somnambulism where one had
no mental capacity to give consent is
equivalent to insanity
Must exist at the time of the celebration of the
marriage. Insanity that occurs after the
celebration of marriage does not constitute a
cause for nullity [Katipunan v. Tenorio (1937)]
PAGE 25
UP LAW BOC
CIVIL LAW
Impotency
Must exist at time of marriage, and be
continuous and incurable. If incapacity can be
remedied or is removable by operation, NOT
ANNULLABLE [Sarao v. Guevarra(1940)]
PAGE 26
UP LAW BOC
CIVIL LAW
after
Prescription
Ratification
(Art. 47)
(Art. 45)
Within 5 years after
attaining 21.
Free cohabitation
Before party below 21 attaining age of 21.
reaches 21.
party
Insane party
Injured
party)
Potent spouse
Within 5 years
disappearance of
undue
influence,
intimidation
Within 5 years
marriage
Within 5 years
marriage
Ground
Who can file
(Art. 45)
(Art. 47)
Party 18 or above but below
Lack
of
21
parental
Parent or guardian who did
consent
not give consent
Sane spouse with no
knowledge of the others
insanity
Insanity
Fraud
Impotence
Healthy party
Force,
intimidation,
Injured party
undue
influence
STD
PAGE 27
UP LAW BOC
CIVIL LAW
Exceptions:
(1) Children conceived or born before the
judgment under Article 36 has become final
and executory [Art. 54, FC]
(2) Children conceived or born of subsequent
marriages under Article 53 Art. 54, FC]
EFFECTS OF NULLITY
EFFECT OF PENDING
ACTIONS/DECREE
(1) The court shall provide for the support of the
spouses,
(2) The custody and support of the common
children, giving paramount consideration to
their moral and material welfare, their choice
of parent with whom they wish to remain.
(3) The court shall also provide for visitation
rights of other parent. [Art. 49, FC]
DECISIONS ON THE NULLIFICATION OF THE
MARRIAGE
Art. 48 (2), FC. In the cases referred to in the
preceding paragraph, no judgment shall be based
upon a stipulation of facts or confession of
judgment.
Stipulation of facts An admission by both parties
after agreeing to the existence of any of the
grounds or facts that would constitute a
void/voidable marriage
Confession of judgment The admission by one
party admitting his/her fault to cause the
invalidity of the marriage.
PAGE 28
UP LAW BOC
JURISDICTION
(1)
(2)
(3)
(4)
(5)
CIVIL LAW
LEGAL
FOR
Legal Separation
GROUNDS
SEPARATION
Note: The grounds for legal separation are
exclusive. [Art. 55, FC]
These must be filed within 5 years after
occurrence of cause [Art. 57, FC]:
(1) Repeated physical violence or grossly abusive
conduct directed against the petitioner, a
common child, or a child of the petitioner;
(2) Physical violence or moral pressure to compel
the petitioner to change religious or political
affiliation;
(3) Attempt of respondent to corrupt or induce
the petitioner, a common child, or a child of
the petitioner, to engage in prostitution, or
connivance
in
such
corruption
or
inducement;
(4) Final judgment sentencing the respondent to
imprisonment of more than six years, even if
pardoned;
(5) Drug addiction or habitual alcoholism of the
respondent;
(6) Lesbianism or homosexuality of the
respondent;
(7) Contracting by the respondent of a
subsequent bigamous marriage, whether in
the Philippines or abroad;
(8) Sexual infidelity or perversion;
(9) Attempt by the respondent against the life of
the petitioner; or
(10) Abandonment of petitioner by respondent
without justifiable cause for more than one
year.
Adultery is not a continuing crime; it is
consummated at every moment of carnal
knowledge. Thus, every sexual act is a ground for
PAGE 29
UP LAW BOC
(6)
(7)
(8)
(9)
DENYING
CIVIL LAW
LEGAL
COOLING-OFF
PERIOD
AND
RECONCILIATION EFFORTS
GROUNDS FOR
SEPARATION
DEFENSES
PAGE 30
UP LAW BOC
(3)
(4)
(5)
(6)
(7)
(8)
CIVIL LAW
Effects of reconciliation:
(1) Proceedings for legal separation shall be
terminated at whatever stage. [Art. 66, FC]
(2) If there is a final decree of legal separation, it
shall be set aside. [Art. 66, FC]
(3) The separation of property and forfeiture of
share of guilty spouse shall subsist, unless the
spouses agree to revive their former property
regime or to institute another property
regime. [Art. 66 cf. Art. 67, FC]
(4) Joint custody of children is restored.
(5) The right to intestate succession by guilty
spouse from innocent spouse is restored.
The right to testamentary succession
depends on the will of the innocent spouse.
RECONCILIATION
CONFESSION OF JUDGMENT
No decree of legal separation shall be based upon
a stipulation of facts or a confession of judgment
[Art. 60, (1). FC]
Note: Art. 60 par. 1 applies only if the judgment
was based solely on the stipulation of facts or
solely on the confession of judgment. Thus, if
other grounds were used, Art. 60 par. 1 is not
applicable. [Balane]
The prohibition on confession of judgment does
not mean that the Court will not grant petition if
one party admits to being guilty of the charges of
adultery. The point of this provision is that the
Court should still admit evidence, not decide just
based on an admission of guilt. Because what is
prohibited is handing down a decree of legal
separation based solely on a confession of
judgment. [Ocampo v Florenciano (1960)]
EFFECTS OF PENDENCY
The Court shall provide for: [Art. 62, cf. Art. 49. FC]
(1) Support of spouses
(2) Custody of children the court shall give
custody of children to one of them, if there is
no written agreement between the spouses.
(3) Visitation rights of the other spouse
PAGE 31
UP LAW BOC
CIVIL LAW
Voidable Marriages
Legal Separation
(1) Repeated physical violence
(2) Pressure
to
compel
to
change
religious/political affiliations
(1) Lack of parental
(3) Corruption / inducement to engage in
consent
prostitution
(2) Insanity
(4) Final judgment with sentence of more than
(3) Fraud
6 yrs.
(4) Force, Intimidation
(5) Drug addiction / habitual alcoholism
or Undue Influence
(6) Homosexuality / lesbianism
(5) Impotence
(7) Bigamous marriage
(6) Serious
and
(8) Sexual Infidelity
Incurable STD
(9) Attempts against the life of petitioner
(10) Abandonment without just cause for more
than 1 year
GROUNDS
Void Marriages
(1) One is a minor
(2) No authority to marry
(3) No valid marriage
license
(4) Bigamous
and
polygamous marriages
(5) Mistake of identity
(6) Void
subsequent
marriage
(7) Psychological
incapacity
(8) Incestuous Marriages
(9) Marriages
against
public policy
Custody of Children
Court Proceeding
Court Proceeding
Innocent Spouse
Void Marriages
Terminated Marriage
Voidable
Legal Separation
[Art. 41, FC]
Marriages
Status of Marital ties
Severed
Severed
Severed
Not Severed
Status of Marriage
Void ab initio
Subsequent marriage Void
Valid
is terminated (not
invalidated)
Status of Children born and conceived before termination
Illegitimate
Legitimate
Legitimate
Legitimate
EXCEPT: Art. 36 and 35
conceived and born before
judgment (legitimate)
Court Proceeding
PAGE 32
UP LAW BOC
CIVIL LAW
SUPPORT
FAMILY DOMICILE
Void Marriages
Terminated Marriage
Voidable
Legal Separation
[Art. 41, FC]
Marriages
Property Relations
(1) Dissolution and Liquidation of properties
(a) Guilty/Bad Faith spouse will forfeit his/her share from the Net Profits to the (in order):
(i) Common children
(ii) Children of the guilty spouse by previous marriage
(iii) The innocent spouse
(2) Notification of creditors with the proceedings for liquidation
(3) Conjugal dwelling to be adjudicated to the spouse who has custody of majority of common children
(4) Insurance policy may be revoked only by the innocent spouse (Legal Separation: Only within 5 years)
(5) Spouse in bad faith/guilty shall be disqualified to inherit from innocent spouse (intestate succession
only in legal separation)
Donation Propter Nuptias
Valid, but if donee contracted marriage in bad faith, revoked by operation of May be revoked within 5
law
years
PAGE 33
UP LAW BOC
MARRIAGE SETTLEMENTS
CIVIL LAW
MANAGEMENT OF HOUSEHOLD
This is the right and duty of both spouses.
EXERCISE OF PROFESSION
Requirements of
marriage settlements
and any modification
thereof [Art. 77, FC]
PAGE 34
UP LAW BOC
CIVIL LAW
DONATIONS BY REASON OF
MARRIAGE
Solis v. Barroso (1928): In donations propter
nuptias, the marriage is really a consideration,
but not in the sense of giving birth to the
obligation. There can be a valid donation even if
the marriage never took place, but the absence
of marriage is a ground for the revocation of the
donation.
Requisites of
donations propter
nuptias
Donations excluded
Grounds for
revocation of
donation propter
nuptias [Art. 86, FC]
PAGE 35
UP LAW BOC
Effects of judicial
declaration of nullity
CIVIL LAW
Donations by reason of marriage shall remain valid except that if the donee
contracted marriage in bad faith, such donations made to said donee are revoked
by operation of law. [Art. 43 (3), FC]
Revocation by operation of law Thus, even if spouse in good faith condones the
donee, the donation propter nuptias is still forfeited.
Effects provided for by Art. 43(2), (3), (4), and (5) and by Art. 44 shall also apply to
marriages that are declared void ab initio or annulled by final judgment under
Article 40 (Judicial declaration of nullity) and 45 (Voidable marriages). [Art. 50,
FC]
General rule: Spouses cannot donate to each other, directly or indirectly;
donations made by spouses to each other during the marriage are void. [Art. 87,
FC]
These donations refer to donations inter vivos [Tolentino]
Exception: Moderate gifts on the occasion of any family rejoicing.
The prohibition on donations can only be assailed by persons who bear such
relation to the parties or the property itself, that their rights are being interfered
with. Here, the insurance company of the donated car cannot assail the validity of
the donation. In addition, the codal exception of moderate gifts depends on the
income class of the spouses and a car could be considered a moderate gift that
does not infringe the prohibition of donation between spouses. [Harding v.
Commercial Union, (1918)]
A spouse cannot donate to persons which the other spouse may inherit from as it
constitutes an indirect donation. [Nazareno v. Birog, (1947)]
The donation between common-law spouses falls within the provision prohibiting
donations between spouses during marriage. [Matabuena v Cervantes, (1971)]
The donation made by a man to a woman was held valid because no proof was
shown that they were still living in a common-law relationship at the time of the
donation. [Sumbad v. CA, (1999)]
Ordinary donations
Express acceptance necessary
Cannot be made by minors
Cannot include future property
No limit to donation of present property provided
legitimes are not impaired
Grounds for revocation in donation laws
PAGE 36
UP LAW BOC
ABSOLUTE
COMMUNITY
OF
PROPERTY
AND
CONJUGAL
PARTNERSHIP OF GAINS
Art. 80, FC. In absence of a contrary stipulation in
a marriage settlement, property relations between
Filipino spouses are governed by Philippine laws,
regardless of the place of marriage and their
residence.
General rule: By the Nationality Rule [Art. 15, FC],
the rule that Absolute Community Property (ACP)
is the default mode of property relations absent
any marriage settlement applies to all Filipinos,
regardless of the place of the marriage and their
residence.
Exceptions:
(1) Where both spouses are aliens
(2) As to the extrinsic validity of contracts
affecting property not situated in the
Philippines and executed in the country where
the property is located
(3) As to the extrinsic validity of contracts entered
into in the Philippines but affecting property
situated in a foreign country whose laws
require different formalities for its extrinsic
validity
Art. 81, FC. Everything stipulated in marriage
settlements in consideration of a future marriage
are void if marriage does not take place. However,
stipulations that do not depend upon the
celebration of marriage (e.g. recognition of
paternity of illegitimate child) remain valid.
Art. 89, FC. Waiver of rights, interests, shares and
effects of the absolute community of property is
allowed, except in the following cases:
(1) When there is judicial separation of property
(2) When the marriage is dissolved by death of
one of the spouses
(3) When the marriage is annulled
Regarding Art. 89: The creditors of the spouse
who made such waiver may petition the court to
rescind the waiver to the extent of the amount
sufficient to cover the amount of their credits.
Art. 90, FC. Co-ownership rules shall apply to ACP
in matters not provided by the Family Code.
PAGE 37
CIVIL LAW
UP LAW BOC
When it
commences
What it
consists of
CIVIL LAW
PAGE 38
UP LAW BOC
What it
consists of
(continued)
What
remains
exclusive
property
CIVIL LAW
PAGE 39
UP LAW BOC
What
remains
exclusive
property
(continued)
Presumption
1.
CIVIL LAW
PAGE 40
UP LAW BOC
Charges and
obligations
CIVIL LAW
PAGE 41
UP LAW BOC
Charges
and
Obligations
(continued)
CIVIL LAW
PAGE 42
UP LAW BOC
Ownership,
administration,
enjoyment, and
disposition
CIVIL LAW
PAGE 43
UP LAW BOC
Ownership,
administration,
2.
enjoyment, and
disposition
(continued)
Dissolution of
the regime
CIVIL LAW
PAGE 44
UP LAW BOC
Effect of de
facto
separation
Rules on
Abandonment
CIVIL LAW
PAGE 45
UP LAW BOC
Liquidation of
assets and
liabilities
(3)
(4)
(5)
(6)
CIVIL LAW
Rules in case of termination of marriage by death of one of the spouses [Art. 104, FC]:
(1) The community property shall be liquidated in the same proceeding for the settlement of the
estate of the deceased spouse.
(2) If no such judicial settlement proceeding is instituted, surviving spouse shall liquidate the
community property either judicially or extra-judicially within one year from the death of the
deceased spouse.
(a) If no liquidation is made within the period, any disposition or encumbrance involving
community property of the terminated marriage shall be void.
(b) Non-compliance with liquidation procedures would mean that a subsequently contracted
marriage will follow a regime of complete separation of property.
Procedure for liquidation of properties of two marriages [Art. 104, FC]:
(1) Determine the capital, fruits, and income of each community upon such proof as may be
considered according to the rules of evidence.
(2) In case of doubt as to which community the existing properties belong, they shall be divided
between two communities in proportion to the capital and duration of each.
PAGE 46
UP LAW BOC
SEPARATION OF PROPERTY OF
THE SPOUSES AND
ADMINISTRATION OF COMMON
PROPERTY BY ONE SPOUSE
DURING THE MARRIAGE
Art. 134, FC. In the absence of an express
declaration in the marriage settlements, the
separation of property between spouses during
the marriage shall not take place except by
judicial order. Such judicial separation of property
may either be voluntary or for sufficient cause
Judicial separation of property may either be:
(1) voluntary or
(2) for sufficient cause
(3)
(4)
(5)
(6)
CIVIL LAW
(7)
PAGE 47
UP LAW BOC
When it
applies
What it
consists of
CIVIL LAW
SEPARATION OF PROPERTY
Agreed upon in the marriage settlements by the spouses
Mandatory under Arts. 103 & 130 (subsequent marriages contracted by a surviving
spouse without judicial settlement of previous property regime)
Default property regime when there is reconciliation between spouses after judicial
separation of property
Present or future property or both
Each spouses earnings from his or her own profession, business, or industry
Natural, industrial or civil fruits of spouses separate properties
May be total or partial
PAGE 48
UP LAW BOC
CIVIL LAW
Art. 147
Art. 148
Applicability
Man and woman living together as husband and
wife, with capacity to marry [Art. 5, FC] without any Man and woman living together as husband and
legal impediment)
wife, NOT capacitated to marry
(1) at least 18 years old
(1) Under 18 years old
(2) not Art. 37 (incestuous void marriage)
(2) Adulterous relationship
(3) not Art. 38 (void marriage by reason of public (3) Bigamous /polygamous marriage
policy)
(4) Incestuous marriages under Art. 37
(4) not bigamous
(5) Void marriages by reason of public policy under
Art. 38
Other void marriages due to absence of formal
requisite
Owned in equal shares
Remains exclusive
Forfeiture
If one party is validly married to another his/her
share in the co-owned properties will accrue to the
ACP/CPG of his/her existing valid marriage
Application of Article 148; there was no proof of actual contribution, while there was a subsisting
marriage apart from the union without marriage, therefore, the N. Forbes house goes to the CPG of
subsisting marriage. [Yaptinchay v. Torres (1969)]
Transfer of certificate and tax declarations are not sufficient proof of joint contribution. [Villanueva v. CA
(2004)]
Marriages that have been declared void come under the rules of co-ownership under FC147/148
regardless of the reason. [Valdez v. QC-RTC (1996)]
PAGE 49
UP LAW BOC
The Family
AS
CIVIL LAW
GUIDELINES
INCLUDES
CONSTITUTED
AN
THE
FAMILY
INSTITUTION
ASPECTS OF FAMILY RELATIONS
(1) External Aspect
(a) Governed by law [Art. 149, FC]
(b) Only in this aspect can third persons
and the public interest be concerned
(2) Internal Aspect
(a) Sacred to the family and inaccessible to
law because law must respect the
freedom of action of man
(b) e.g. spiritual relations, sexual relations
of spouses, profession and career of
spouses, practices and customs of
family
Between husband and wife
Between parents and children
Among other ascendants and descendants
Among brothers and sisters, full or half
blood
PAGE 50
UP LAW BOC
THE
FAMILY
CIVIL LAW
OF
BENEFICIARIES
HOME
(1) Husband and wife, or an unmarried person
who is the head of the family
(2) Parents (may include parent-in-laws),
ascendants, descendants, brothers and
sisters (legitimate/illegitimate), who are
living in the family home and who depend
on the head of the family for support. [Art.
154, FC]
REQUISITES TO BE A BENEFICIARY
(1) The
relationship
is
within
those
enumerated;
(2) They live in the family home; and
(3) They are dependent for legal support on the
head of the family.
PAGE 51
UP LAW BOC
CIVIL LAW
Exceptions:
(1) Children of marriages void under Art.36
(psychological incapacity); and
(2) Under Art. 53 (subsequent marriages which
ARTIFICIAL INSEMINATION
Requisites to be considered legitimate:
(1) Artificial insemination made on wife
(2) Sperm comes from any of the following:
(a) Husband
(b) Third person donor
(c) Husband and third person donor
(3) In case of donor sperm, husband and wife
must authorize/ratify insemination in a
written instrument:
(a) Executed & signed by husband and wife
before the birth of the child.
(b) Recorded in the civil registry together
with the birth certificate of the child.
[Art. 164, FC]
NATURAL/BIOLOGICAL
A child conceived or born during a valid
marriage is presumed to belong to that
marriage, regardless of the existence of
extramarital relationships. [Liyao v. Liyao
(2002)]
LEGITIMATE CHILDREN
PAGE 52
UP LAW BOC
CIVIL LAW
IMPUGNING LEGITIMACY
Grounds for impugning legitimacy of a child are:
(1) Physical impossibility for the husband to
have sexual intercourse with his wife within
the first 120 days of the 300 days which
immediately preceded the child's birth due
to:
(a) Physical incapacity of the husband to
have sexual intercourse with his wife
(b) Husband and wife were living
separately as to make sexual
intercourse impossible
(c) Serious illness of the husband
absolutely
preventing
sexual
intercourse
(2) Other biological or scientific reasons, except
artificial insemination
(3) And in case of artificial insemination, the
written consent of either parent was vitiated
through
fraud,
violence,
mistake,
intimidation, or undue influence. [Art. 166,
FC]
Mere proximate separation between the
spouses is not sufficient physical separation to
constitute as ground for impugning legitimacy.
[Macadangdang v. CA (1980)]
Serious illness of the husband which absolutely
prevented him from having sexual intercourse
with his wife, like if the husband was already in
comatose or a vegetable, or sick with syphilis in
the tertiary stage so that copulation was not
possible. But tuberculosis, even in its most
crucial stage, does not preclude copulation
between the sick husband and his wife. [Andal v.
Macaraig (1951)]
Blood-type matching is an acceptable means of
impugning legitimacy, covered by Art. 166(2),
under biological or other scientific reasons.
But this is only conclusive of the fact of nonpaternity. [Jao v. CA (1987)]
PAGE 53
UP LAW BOC
CIVIL LAW
ILLEGITIMATE CHILDREN
PROOF OF FILIATION
Legitimate children may establish their filiation
by any of the following [Art. 172, FC]:
(1) Primary Evidence
(a) Their record of birth appearing in the
civil registry.
(b) An admission of his filiation by his
parent in a public document or a private
handwritten instrument and signed by
said parent
(2) Secondary Evidence
(a) Proof of open and continuous
PAGE 54
UP LAW BOC
CIVIL LAW
PAGE 55
UP LAW BOC
CIVIL LAW
IMPUGNING
Legitimation
Adoption
Legal effect
The law merely makes The law creates by
legal what exists by fiction a relation which
nature
did not in fact exist
Persons affected
Natural children
Strangers (generally)
Procedure
Extrajudicial acts of Always by judicial
parents
decree
Who should apply
Both parents, with
exceptions allowing
Both parents
only one of them to
apply [RA 8552]
Effect on parent-child relationship
Same status and
rights with that of a
Creates a relationship
legitimate child not
only between the child
only in relation to the
and the adopting
legitimizing parents
parents
but also to other
relatives
Adoption
RIGHTS
GROUNDS
FOR
LEGITIMATION
LEGITIMATED CHILDREN
Legitimated children are illegitimate children
who because of the subsequent marriage of
their parents are, by legal fiction, considered
legitimate.
TO BE CAPABLE OF LEGITIMATION
(1) The child must have been conceived and
born outside of wedlock; and
(2) The parents, at the time of the child's
conception, were not disqualified by any
impediment to marry each other, or
disqualified only because either or both of
them were below 18 y.o. [Art. 177 as
amended by RA 9858]
PAGE 56
UP LAW BOC
CIVIL LAW
Exceptions:
(1) If one spouse seeks to adopt the legitimate
child of the other
(2) If one of the spouses seeks to adopt his/her
illegitimate child provided that the other
spouse has signified his/her consent
(3) If spouses are legally separated from each
other
JOINT ADOPTION
General rule: Husband and wife shall adopt
jointly.
GUARDIANS
With respect to their wards, after the
termination of the guardianship and clearance
of his/her accountabilities.
PAGE 57
UP LAW BOC
CIVIL LAW
PRE-ADOPTION PROCEDURES
PAGE 58
UP LAW BOC
OF
CIVIL LAW
Adoption Decree
Placement
Matching
ADOPTION PROCEDURES
INVOLUNTARY
COMMITMENT
ABANDONED OR NEGLECTED CHILD
Filing of a petition at Regional DSWD in
the form of an affidavit and with the
required supporting documents
PAGE 59
UP LAW BOC
WHO MAY
ADOPTED
NOT
BE
CIVIL LAW
RESCISSION OF ADOPTION
NATIONALITY
Adoption does not confer citizenship: Philippine
citizenship may be lost/acquired [only] in the
manner provided by law. [Sec. 3, Art. 4,
Constitution]
NAME
ADOPT/
PAGE 60
UP LAW BOC
SIMULATED
CIVIL LAW
or
THREE-IN-ONE PROCEDURE
(1) Correction of entries in birth certificate
(2) Deed of Voluntary Commitment
Declaration of abandonment
(3) Adoption decree
OF
RECTIFICATION
BIRTH
Simulation of birth is the tampering of LCR
records to make it appear that a certain child
was born to a person who is not his/her
biological parent, causing said child to lose
his/her true identity/status.
Sec. 21-b (RA 8552). Any person who shall cause
the fictitious registration of the birth of a child
under the name(s) of a person(s) who is not
his/her biological parent(s) shall be guilty of
simulation of birth, and shall be punished by
prision mayor in its medium period and a fine
not exceeding P50,000.00.
A person who has, prior to the effectivity of RA
8552, simulated the birth of a child shall not be
PAGE 61
UP LAW BOC
CIVIL LAW
PAGE 62
UP LAW BOC
Support
WHAT IT COMPRISES
FOR
CIVIL LAW
ANSWERABLE
PROPERTIES
SUPPORT
ORDER OF SUPPORT
PAGE 63
UP LAW BOC
CIVIL LAW
ATTACHMENT
OPTIONS
WHEN DEMANDABLE
AMOUNT
OR
PAGE 64
UP LAW BOC
Parental Authority
GENERAL PROVISIONS
(1)
(2)
(3)
(4)
(5)
CIVIL LAW
CASES
WHEN
PARENTAL
AUTHORITY AND RESPONSIBILITY
MAY
BE
TRANSFERRED
OR
RENOUNCED
(1) Adoption;
(2) Guardianship; or
(3) Commitment of the child in an entity or
institution engaged in childcare or in a
childrens home.
CHARACTERISTICS OF PARENTAL
AUTHORITY
PAGE 65
UP LAW BOC
DESCENDANTS
OF
EXERCISING
CIVIL LAW
SPECIAL
Substitute Parental
Special Parental
Authority
Authority
It
is
exercised
concurrently with the
parental authority of
the parents and rests
on the theory that
It is exercised in case
while the child is in the
of death, absence, or
custody of the person
in case of unsuitability
exercising
special
of parents.
parental authority, the
parents temporarily
relinquish
parental
authority over the
child to the latter.
PERSONS
PRIVILEGE
is
In order:
(1) The surviving grandparent [Art. 214, FC]
(2) Oldest brother or sister, over 21 years old,
unless unfit or unqualified.
(3) Childs actual custodian, over 21 years old,
unless unfit or unqualified.
The same order applies to the appointment of
judicial guardian over the property of the child.
PAGE 66
UP LAW BOC
(1)
(2)
(3)
(4)
(5)
(6)
(7)
CIVIL LAW
THE
(1) The parents or, in their absence or
incapacity, the individual, entity or
institution exercising parental authority,
may petition the proper court of the place
COURT
ASSISTANCE
IN
DISCIPLINE OF THE CHILD
SUBSTITUTE REPRESENTATION
EFFECT OF PARENTAL
AUTHORITY UPON THE
PERSONS OF THE CHILDREN
RIGHTS OF PARENTS UPON THE
PERSON OF THE CHILDREN
PAGE 67
UP LAW BOC
CIVIL LAW
ENTRUST THE
OF
THEIR
PROPERTIES TO A CHILD [Art. 227, FC]
If the parents entrust the management or
administration of any of their properties to an
unemancipated child, the net proceeds of
such property shall belong to the owner.
The child shall be given a reasonable monthly
allowance in an amount not less than that
which the owner would have paid if the
administrator were a stranger, unless the
owner grants the entire proceeds to the child.
WHEN PARENTS
MANAGEMENT
PARENTS USUFRUCT
OWNERSHIP OF CHILDS
ACQUISITIONS
EFFECTS OF PARENTAL
AUTHORITY UPON THE
PROPERTY OF THE CHILDREN
[Art. 225, FC]
(1) The father and mother shall jointly exercise
legal guardianship over the property of the
minor common child without court
appointment.
(2) In case of disagreement, the fathers
decision shall prevail, unless there is judicial
order to the contrary.
(3) The ordinary rules on guardianship shall be
merely suppletory except when the child is
under substitute parental authority, or the
guardian is a stranger, or a parent has
remarried, in which case the ordinary rules
on guardianship shall apply.
(4) If the market value of the property or the
annual income of the child exceeds
P50,000, the parent is required to furnish a
PAGE 68
UP LAW BOC
OF
SUBSTITUTE
CIVIL LAW
AND
PERSONS LIABLE
(1) Those who engage in or promote, facilitate
or induce child prostitution which include,
but are not limited to, the following:
(a) Acting as a procurer of a child
prostitute;
(b) Inducing a person to be a client of a
child prostitute by means of written or
oral advertisements or other similar
means;
(c) Taking advantage of influence or
relationship to procure a child as
prostitute;
(d) Threatening or using violence towards a
child to engage him as a prostitute; or
SCOPE
PERMANENT DEPRIVATION OF
PARENTAL AUTHORITY ON
SUSPENSION OR TERMINATION
OF PARENTAL AUTHORITY;
RA 7610, CHILD ABUSE LAW
PARENTAL AUTHORITY
PERMANENTLY TERMINATES
(1)
(2)
(3)
(4)
TERMINATION
OF
PARENTAL
AUTHORITY WHICH CAN BE REVIVED
BY FINAL JUDGMENT [Art. 229, FC]
(1) Upon adoption of the child;
(2) Upon the appointment of a general
guardian for the child;
(3) Upon judicial declaration of
(a) Abandonment of the child in a case
filed for the purpose
(b) Absence or incapacity of the person
exercising parental authority
(4) Upon final judgment of a competent court
divesting the party concerned of parental
authority.
GROUNDS FOR SUSPENSION OF
PARENTAL AUTHORITY [Art. 230 and
231, FC]
(1) Conviction of parent for crime which carries
with it the penalty of civil interdiction
(2) Treats child with excessive harassment and
cruelty
(3) Gives corrupting orders, counsel, or
example
(4) Compels child to beg
PAGE 69
UP LAW BOC
CIVIL LAW
PAGE 70
UP LAW BOC
Emancipation
6809]
CIVIL LAW
JURISDICTION
SITUATION
SEPARATION IN FACT
[as amended by RA
Summary Judicial
Proceedings in the Family
Law
PROCEDURAL RULES
PROVIDED FOR IN THIS TITLE
PAGE 71
UP LAW BOC
PROCEDURE
CIVIL LAW
PROCEDURE
INCIDENTS INVOLVING
PARENTAL AUTHORITY
NATURE OF JUDGMENT
PAGE 72
UP LAW BOC
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
CIVIL LAW
GUIDELINES
IN
MAKING
FUNERAL ARRANGEMENTS
FUNERAL EXPENSES
DAMAGES
Retroactive Effect
This Code shall have retroactive effect insofar as
it does not prejudice or impair vested or
acquired rights in accordance with the Civil
Code or other laws. [Art 256, FC]
Funeral
RELATIVES DUTY AND RIGHTS
TO ARRANGE FUNERALS
The duty and the right to make arrangements
for the funeral of a relative shall be in
accordance with the order established for
support, under Article 294 [Art. 305, CC]:
(1) Spouse
(2) Descendants in the nearest degree. In case
of descendants of the same degree, the
oldest shall be preferred.
(3) The ascendants in the nearest degree. In
case of ascendants, the paternal shall have
a better right.
(4) The brothers and sisters, the oldest shall be
preferred.
(5) Municipal authorities, if there are no
persons who are bound to support or if such
persons are without means.
NATURE OF FUNERAL
Every funeral shall be in keeping with the social
position of the deceased. [Art. 306]
The funeral shall be [Art. 307, CC]:
(1) In accordance with the expressed wishes of
the deceased.
(2) In the absence of such expression, his
religious beliefs or affiliation shall
determine the funeral rites.
(3) In case of doubt, the form of the funeral
shall be decided upon by the person obliged
to make arrangements for the same, after
consulting the other members of the family
PAGE 73
UP LAW BOC
Use of Surnames
DURING
CIVIL LAW
SURNAMES OF CHILDREN
AND
WIFE AFTER
MARRIAGE
(1) A married woman may use [Art. 370, CC]:
(a) Her maiden first name and surname
and add her husband's surname, or
(b) Her maiden first name and her
husband's surname or
(c) Her husband's full name, but prefixing a
word indicating that she is his wife, such
as "Mrs."
The wife cannot claim an exclusive
right to use the husbands surname.
She cant be prevented from using it;
but neither can she restrain others
from using it. [Tolentino]
(2) In case of annulment of marriage, and the
wife is the guilty party, she shall resume her
maiden name and surname. If she is the
innocent spouse, she may resume her
maiden name and surname. However, she
may choose to continue employing her
former husband's surname, unless [Art. 371,
CC]:
(a) The court decrees otherwise, or
PAGE 74
UP LAW BOC
Absence
CIVIL LAW
Exceptions:
The following subsequent marriage of the
present spouse is valid:
(1) Subsequent marriage due to ordinary
absence where:
(a) The prior spouse had been absent for 4
consecutive years;
(b) The spouse present had a well-founded
belief that absent spouse is dead; and
(c) Judicial declaration of presumptive
death was secured (no prejudice to the
effect of the reappearance of the absent
spouse).
(2) Subsequent marriage due to extraordinary
absence where:
(a) The prior spouse had been missing for 2
consecutive years;
(b) There is danger of death attendant to
the disappearance [Art. 391, Civil Code];
(c) The spouse present had a well-founded
belief that the missing person is dead;
and
(d) Judicial declaration of presumptive
death was secured (no prejudice to the
effect of the reappearance of the absent
spouse).
SUBSEQUENT MARRIAGE
CONTRACTED WHEN ONE
SPOUSE IS ABSENT
PROVISIONAL MEASURES IN
CASE OF ABSENCE
Art. 43, CC. If there is a doubt, as between two
or more persons who are called to succeed each
other, as to which of them died first, whoever
alleges the death of one prior to the other, shall
prove the same; in the absence of proof, it is
presumed that they died at the same time and
there shall be no transmission of rights from
one to the other.
Article 43 provides a statutory presumption
when there is doubt on the order of death
between persons who are called to succeed each
other (only).
The statutory presumption of Article 43 was not
applied due to the presence of a credible
eyewitness as to who died first. [Joaquin v.
Navarro (1948)]
Older
Male
Presumed Survivor
Older
Younger
One under 15
PAGE 75
UP LAW BOC
(1)
(2)
(3)
(4)
CIVIL LAW
AS
Spouse present
Heirs instituted in a will, who may present an
authentic copy of the same;
Relatives who may succeed by the law of
intestacy;
Those who may have some right over the
property of the absentee, subordinated to the
condition of his death.
DECLARATION OF ABSENCE
REQUISITES TO APPOINT
REPRESENTATIVE
PAGE 76
UP LAW BOC
CIVIL LAW
EXTRAORDINARY ABSENCE
Exception: Succession
In succession, 10 years is required for
presumption of death.
If absentee disappeared after age of 75, 5
years shall be sufficient.
PRESUMPTION OF DEATH
ADMINISTRATION
OF
THE
PROPERTY OF THE ABSENTEE
Art. 387, CC. An administrator of the absentee's
property shall be appointed in accordance with
Article 383.
Art. 388, CC. The wife who is appointed as an
administratrix of the husband's property cannot
alienate or encumber the husband's property, or
that of the conjugal partnership, without judicial
authority.
Art. 389, CC. The administration shall cease in
any of the following cases:
(1) When the absentee appears personally or
by means of an agent;
(2) When the death of the absentee is proved
and his testate or intestate heirs appear;
(3) When a third person appears, showing by a
proper document that he has acquired the
absentee's property by purchase or other
title.
In these cases the administrator shall cease in
the performance of his office, and the property
shall be at the disposal of those who may have a
right thereto.
PAGE 77
UP LAW BOC
CIVIL LAW
Exception:
Clerical or typographical errors;
Change of: first name or nickname, day and
month in the date of birth, or sex of a person
This exception applies where it is patently clear
that there was a clerical or typographical error
or mistake in the entry, which can be corrected
RA 9048 AS AMENDED BY RA
10172
Civil Registrar
ARTICLES 407-413
Art. 407, CC. Acts, events and judicial decrees
concerning the civil status of persons shall be
recorded in the civil register.
Art. 408, CC. The following shall be entered in
the civil register:
(1) Births;
(2) Marriages;
(3) Deaths;
(4) Legal Separations;
(5) Annulments of marriage;
(6) Judgments declaring marriages void from
the beginning;
(7) Legitimations;
(8) Adoptions;
(9) Acknowledgments of natural children;
(10) Naturalization;
(11) Loss, or
(12) Recovery of citizenship;
(13) Civil interdiction;
(14) Judicial determination of filiation;
(15) Voluntary emancipation of a minor; and
(16) Changes of name.
PAGE 78
UP LAW BOC
CIVIL LAW
GROUNDS
PAGE 79
UP LAW BOC
CIVIL LAW
OF
PAGE 80
UP LAW BOC
CIVIL LAW
(3) Deaths
(4) Legal separations
(5) Judgments of annulments of marriage
(6) Judgments declaring marriages void from
the beginning
(7) Legitimations
(8) Adoptions
(9) Acknowledgments of natural children
(10) Naturalization
(11) Election, loss or recovery of citizenship
(12) Civil interdiction
(13) Judicial determination of filiation
(14) Voluntary emancipation of a minor
(15) Changes of name
WHERE FILED
Verified petition for cancellation or correction of
entry in the civil registry may be filed with the
Regional Trial Court of the province where the
corresponding civil registry is located.
ENTRIES SUBJECT TO
CANCELLATION/CORRECTION
(1) Births
(2) Marriages
PAGE 81
PAGE 82
UP LAW BOC
Property
CIVIL LAW
(1) Par. 1
(a) Building - their adherence to the land
must be permanent and substantial.
(b) Buildings have been considered as
immovables, despite:
CATEGORIES OF IMMOVABLES
(1) By nature
(2) By incorporation
(3) By destination
(4) By analogy
PROPERTY
Characteristics
(1) Utility capacity to satisfy human wants
(2) Substantivity and Individuality separate and
autonomous existence
(3) Susceptibility of being appropriated what
cannot be appropriated because of their
distance, depth, or immensity cannot be
considered things (i.e. stars, ocean)
Classification
HIDDEN TREASURE
Hidden treasure any hidden and unknown
deposit of money jewels or other precious
objects, the lawful ownership of which does not
appear. [NCC 439]
Owner of the land, building or other property on
which the hidden treasure was found, also owns
it, subject to:
(1) Right of a finder by chance who is not a
trespasser/intruder: of treasure
(2) Right of a usufructuary who finds treasure:
of treasure
(3) Right of State to acquire things of interest to
science or the arts [NCC 438]
BASED ON MOBILITY
[IMMOVABLE OR MOVABLE]
REAL OR IMMOVABLE PROPERTY
NCC 415.
(1) Land, buildings, roads and constructions
of all kinds adhered to the soil;
(2) Trees, plants, and growing fruits, while
they are attached to the land or form an
integral part of an immovable;
(3) Everything attached to an immovable in
a fixed manner, in such a way that it cannot
be separated therefrom without breaking
the material or deterioration of the object;
PAGE 83
UP LAW BOC
Par. 3 v. Par. 4
Par. 3
Cannot be separated
from
immovable
without breaking or
deterioration
by
CIVIL LAW
(2) Par. 5
(a) Immovability depends upon their being
destined for use in the industry or work
in the tenement;
(i) The moment they are separated,
(from the immovable or from the
industry or work in which they are
utilized) they recover their condition
as movables.
(ii) If it is still needed for the industry
but separated from the tenement
temporarily, the property continues
to be immovable.
(b) Requisites for Immovability in Par. 5:
(i) Placed by the owner or the tenant
(as agent);
(ii) The
machine,
receptacle,
instrument, implement must also
Par. 4
Can be separated
from
immovable
without breaking or
deterioration
Must be placed by
the owner, or by his
agent, expressed or
implied
Real property by
incorporation
and
destination
(1) Par. 4
(a) Requisites:
(i) Placed by the owner or by the
tenant (as agent);
(ii) With intention of attaching them
permanently even if adherence
will not involve breakage or injury.
(b) Where the improvement or ornaments
placed by the lessee are not to pass to
the owner at the expiration of the lease,
they remain movables for chattel
mortgage purposes. [Davao Sawmill v.
Castillo(1935)]
PROPERTY
PAGE 84
UP LAW BOC
PROPERTY
CIVIL LAW
(2) By description
(a) Ability to change location whether it
can be carried from place to place;
(1) By exclusion
Everything NOT included in Article 415
Parties cannot by agreement treat as
immovable that which is legally movable.
PERSONAL OR MOVABLE
PAGE 85
UP LAW BOC
CIVIL LAW
PROPERTY
the
PAGE 86
UP LAW BOC
BASED ON OWNERSHIP
NCC 419. Property is part of either the
public dominion or private ownership.
CIVIL LAW
PROPERTY
PUBLIC DOMINION
Property of public dominion is outside the
commerce of man. They cannot be the subject
matter of private contracts, cannot be acquired
by prescription and they are not subject to
attachment and execution nor burdened with a
voluntary easement.
Public
Dominion
Public Domain
Public Lands
CHARACTERISTICS
Not owned by the State but pertains to
it as territorial sovereign; to hold in trust
for the interest of the community.
Purpose: For public use, and not for use
by the State as a juridical person.
Cannot be the subject of appropriation
either by the State or by private
persons.
CLASSIFICATIONS
Administered by the State [NCC 420]
(1) Those intended for public use. (roads, canals,
rivers, torrents, ports and bridges
constructed by the State, banks, shores,
roadsteads, and others of similar character)
May be used by everybody, even by
strangers or aliens but nobody can exercise
over it the rights of a private owner.
(2) Those intended for some public service:
may be used only by authorized persons but
exists for the benefit of all.
PAGE 87
UP LAW BOC
CIVIL LAW
personally/through
predecessors-in-interest,
openly,
continuously and exclusively for 30
years is CONVERTED to private
property by the mere lapse or
completion of the period. The
application for confirmation is mere
formality, because land had already
been converted, giving rise to a
registrable title. [Director of Lands v.
IAC(1986)]
Conversion
PROPERTY
(2) Patrimonial
property
of
Municipal
Corporations:
The province or municipality, as a juridical
entity, also possesses private property to
answer for its economic necessities.
Classification of Properties of provinces,
cities, and municipalities [Salas v.
Jarencio, (1972)]
(i) Properties acquired with their own
funds in their private or corporate
capacity over which the political
subdivision has ownership and
control.
(ii) Properties of public dominion held in
trust for the States inhabitants are
subject to the control and supervision
of the State.
Private Ownership
Can be exercised by the State in its private
capacity or by private persons.
Kinds
(1) Patrimonial property - Property owned by the
State and its political subdivisions in their
private capacity; all property of the State
not included in NCC 420 (on public
dominion) [NCC 421-424]
PAGE 88
UP LAW BOC
CIVIL LAW
BY SUSCEPTIBILITY TO DETERIORATION
(1) Deteriorable
Those that deteriorate through use or by
time.
(2) Non-deteriorable.
OTHER CLASSIFICATIONS
(1)
(2)
(3)
(4)
PROPERTY
CONSUMABILITY
BASED ON
[NCC 418]
Only applies to movable property, determined by
nature.
CONSUMABLE
(1) Movables which cannot be used in a
manner appropriate to their nature without
their being consumed. (e.g. food)
(2) Consumable goods cannot be the subject
matter of a commodatum unless the
purpose of the contract is not the
consumption of the object, as when it is
merely for exhibition.
NON-CONSUMABLE
All others not falling under consumable e.g.
money in coin.
BASED ON SUSCEPTIBILITY TO
SUBSTITUTION
Only applies to movables, determined by the
intention of the parties.
FUNGIBLES
Things that, because of their nature or the will
of the parties, are capable of being substituted
by others of the same kind, not having a distinct
individuality.
NON-FUNGIBLES
(1) Things that cannot be substituted for
another;
(2) If the parties agreed that the same thing be
returned, it is not fungible.
PAGE 89
UP LAW BOC
Real Rights
Definite active subject
who has a right against
ALL persons generally
as an indefinite passive
subject.
CIVIL LAW
[NCC
Personal Rights
Definite active subject
(creditor)
and
a
definite
passive
subject (debtor).
Personal Rights
Rights of a person to demand from another as a
definite passive subject, the fulfillment of a
prestation to give, to do or not to do.
Real Rights
Rights that confer upon its holder an
autonomous power to derive directly from a
thing
certain
economic
advantages
independently of whoever the possessor of the
thing.
BASIC DISTINCTIONS
PROTECTING PROPERTY
BUNDLE OF RIGHTS
(1) Jus Utendi: Right to enjoy and receive what
the property produces.
(2) Jus Fruendi: Right to receive the fruits.
(3) Jus Accessiones: Right to the accessories.
(4) Jus Abutendi: Right to consume a thing by
use.
(5) Jus Disponendi: Right to alienate,
encumber, transform or even destroy the
thing owned.
(6) Jus Vindicandi: Right to recover possession
of property based on a claim of ownership.
(7) Jus Possidendi: Right to possess the
property. (Implied from all the other rights)
428]
RIGHT IN GENERAL
PROPERTY
BY REASON OF DESIGNATION
(1) Generic
That which indicates its homogenous
nature, but not the individual such as a
horse, house, dress, without indicating it.
(2) Specific
That which indicates the specie or its nature
and the individual, such as the white horse
of X.
EXISTENCE IN POINT OF TIME
(1) Present
Those which exist in actuality, either
physical or legal, such as, the erected
building.
(2) Future
Those which do not exist in actuality, but
whose existence can reasonably be
expected with more or less probability, such
as ungathered fruits.
Ownership
DEFINITION AND CONCEPT
Independent
right
of
exclusive
enjoyment and control of a thing.
Has the purpose of deriving all
advantages required by the reasonable
needs of the owner/holder of right and
promotion of general welfare.
A complete subjection to an owners
will.
May be exercised in everything not
prohibited by public law or the rights of
another.
TYPES OF OWNERSHIP
PAGE 90
UP LAW BOC
CIVIL LAW
Accion Interdictal
A summary action for recovery of physical
possession through either an action for Forcible
Entry or Unlawful Detainer.
Prior physical possession by the plaintiff
is not required.
The action must be filed within 1 year
AFTER
dispossession/unlawful
possession/demand to vacate.
Accion Publiciana
Recovery of a better right to possess (de jure).
Judgment as to who has the better right
of possession.
Also, actions for ejectment not filed
within 1 year must be filed as accion
publiciana.
Prescription: 10 years.
PROPERTY
Real Rights
Personal Rights
Object is generally a Subject matter is
corporeal thing.
always an incorporeal
thing.
Generally extinguished Personal
right
by
the
loss
or survives the subject
destruction of the thing matter.
over which it is
exercised.
It is directed against It is binding or
the whole world, giving enforceable
only
rise to real actions against a particular
against 3rd persons.
person giving rise to
personal
actions
against such debtor.
REAL ACTION v. PERSONAL ACTION (ROC,
Rule 4 Sec 1-2)
Real action
Actions affecting title to or possession of real
property or any interest therein.
Personal action
All other actions.
ACTION IN REM v. ACTION IN PERSONAM v.
ACTION QUASI IN REM
Action in rem
Action against a property, judgment binding
against the whole world.
Action in personam
Action against a specific person, judgment
binding against that particular person.
Action quasi in rem
Action against a specific property with respect
to a person.
REMEDIES
DOCTRINE OF SELF-HELP [NCC 429-430]
The owner may use such force as may be
reasonably necessary to repel or prevent an
actual or threatened unlawful physical
invasion or usurpation of his property.
Every owner may enclose or fence his land or
tenements by any other means without
detriment to servitudes constituted thereon.
PAGE 91
UP LAW BOC
Movable property
CIVIL LAW
SPECIFIC LIMITATIONS
Imposed by law, sic utere tuo, nuisance, state of
necessity, easements, and those voluntarily
imposed by the owner: servitudes, mortgages
imposed by contract.
EMINENT DOMAIN
Property taken for public use/purpose, but
subject to due process and payment of just
compensation.
TAXATION
Forced contribution to the operation of
government.
PROPERTY
Replevin
For manual delivery of property
Prescription of Right: 4 years (GF) or 8 years
(BF)
Requisites for recovery of property [NCC 434]
(1) Property must be identified;
Through a relocation survey and a title
properly identifying boundaries and
location.
(2) Plaintiff must rely on the strength of his title
and not on weakness of defendants title.
Right must be founded on positive title
and not on lack or insufficiency of
defendants.
Ei incumbit probatio qui dicit, non qui
negat: He who asserts, not he who denied
must prove.
LIMITATIONS ON OWNERSHIP
LIMITATIONS ON THE RIGHT OF
OWNERSHIP PROVIDED BY THE LAW
GENERAL LIMITATIONS
Taxation, eminent domain, police power
POLICE POWER
Property taken with no compensation for
general welfare.
When any property is condemned or seized by
competent authority in the interest of health,
safety or security, the owner thereof shall not
be entitled to compensation, unless he can
show that such condemnation or seizure is
unjustified. [Art. 436, Civil Code]
Requisites: To justify the exercise of police
power, the following must appear [US v
Toribio(1910)]:
(a) The interests of the public generally, require
such interference (as distinguished from
those of a particular class); and
(b) The means are reasonably necessary for the
accomplishment of a purpose, and not
unduly oppressive.
PAGE 92
UP LAW BOC
PROPERTY
Real Action
Venue
In personam
Summon
Prayer
Basis
Title
In personam
In personam
Real Action
Possession Prior
physical
possession
Possession Real right of
Possession
Possession Ownership
Real Action
Quasi-in rem
Quieting
Ownership
of Title
Possession Ownership
In personam
Real Action
In personam
Ownership
Personal
Action
Real Action
(4) Nuisance
A nuisance is any act, omission, establishment,
business, condition of property, or anything else
which:
(a) Injures or endangers the health or safety
of others;
(b) Annoys or offends the senses;
(c) Shocks, defies or disregards decency or
morality;
(d) Obstructs or interferes with the free
passage of any public highway or street,
or any body of water; or
(e) Hinders or impairs the use of property.
[NCC 694]
Summary of Actions:
Action
Forcible Entry/Unlawful
Detainer
Accion Publiciana
Accion Reividicatoria
Reconveyance
Quieting of Title
Replevin
PAGE 93
CIVIL LAW
Prescription
1 year
10 years
[NCC 555(4)]
GF: 10 years
BF: 30 years
[NCC 1137]
Unless--Torrens Title -- Unless
laches
10 years
(NCC 1456)
Imprescriptible
GF: 4 years
BF: 8 years
UP LAW BOC
Accession
CIVIL LAW
Note:
(a) Natural and Industrial Fruits are real
property while still ungathered.
(b) Only those that are manifest or born are
considered as natural or industrial fruits.
Kinds of Fruits
(1) Natural spontaneous products of soil and the
young and other products of animals [NCC 442
(1)].
PROPERTY
CLASSIFICATION OF
ACCESSION
(1) Accession Discreta (fruits) the right
pertaining to the owner of a thing over
everything produced thereby (by internal
forces).
(2) Accession Continua the right pertaining to
the owner of a thing over everything that is
incorporated or attached thereto either
naturally or artificially; by external forces (by
external forces).
(a) Over Immovables
(i) Industrial
(ii) Natural
(1) Alluvion
(2) Avulsion
(3) Change of Course of River
(4) Formation of Islands
(b) Over Movables
(i) Conjunction and Adjunction
(ii) Commixtion and Confusion
(iii) Specification
PAGE 94
UP LAW BOC
CIVIL LAW
Rationale
To offset the owners loss from possible
erosion due to the current of the river;
To compensate for the subjection of the
land to encumbrances and legal
easements.
Effect:
The riparian owner automatically owns the
Alluvion BUT it does not automatically
become registered property. [Reynante v CA
(1992)]
Requisites:
(1) Deposit of soil or sediment is gradual
and imperceptible;
(2) As a result of the action of the currents
of the waters of the river;
(3) Land where the accretion takes place is
adjacent to the banks of the rivers; and
(4) Deemed to Exist: When the deposit of
the sediment has reached a level higher
than the highest level of the water
during the year.
Note:
Bad faith leads to liability for damages and the
loss of the works or the improvement without
reimbursement.
Bad faith of one party neutralizes the bad faith of
the other.
PROPERTY
PAGE 95
UP LAW BOC
CIVIL LAW
PROPERTY
Requisites:
(1) Segregation and transfer of land is
sudden and abrupt;
(2) Caused by the current of the water;
and
(3) The portion of land transported
must be known and identifiable.
OR
(4) Can also apply to sudden transfer
by other forces of nature such as
land transferred from a mountain
slope because of an earthquake.
Effect:
The ownership of the detached property
is retained by the owner subject to
removal within 2 years from the
detachment.
(c) Change Of Course Of River
Requisites:
(1) Change in the natural course of the
waters of the river; and
(2) Such
change
causes
the
abandonment of the river beds.
Natural Bed: ground covered by its
waters during ordinary floods.
(3) Such change is sudden or abrupt
Results:
(i) Owners whose lands are occupied
by the new course automatically
become owners of the old bed, in
proportion to the area they lost
(ii) Owners of the lands adjoining the
old bed are given the right to
acquire the same by paying the
value of the land.
*Not exceeding the value of the land
invaded by the new bed (the old
property of the owner)
(iii) The new bed opened by the river on
a private estate shall become of
public dominion.
PAGE 96
UP LAW BOC
Builder,
Planter,
Sower
[BPS]
Good Faith
Bad Faith
Good Faith
PROPERTY
Landowner
Bad Faith
SAME AS
GF: GF
CIVIL LAW
PAGE 97
UP LAW BOC
Material
Man
Good
Faith
Bad
Faith
Landowner
PROPERTY
Good Faith
Landowner
Bad Faith
CIVIL LAW
Owner of Material
Bad faith
Bad faith
Recover necessary expenses for (1) Recover value from BPS (as if
preservation of land from
both are in good faith)
landowner unless landowner (2) If BPS acquires improvement,
sells land.
remove materials if feasible
w/o injury
(3) No action against landowner
but may be liable to
landowner for consequential
damages
Good faith
Bad faith
(1) Right of retention until (1) Lose the material without
necessary
and
useful
right to indemnity.
expenses are paid.
(2) Must pay for damages to
(2) Keep BPS without indemnity
BPS.
to OM and collect damages
from him.
Good faith
Good faith
(1) Right of retention until (1) Collect value of material
necessary and useful expenses
primarily from BPS and
are paid;
subsidiarily to landowner if
(2) To pay value of materials to
BPS is insolvent; and
OM.
(2) Limited right of removal (if
the removal will not cause
any injury)
BPS
Good faith
Options:
(a) Right to acquire
improvements and pay
indemnity to BPS; subsidiarily
liable to OM;
(b) Sell the land to BP except if
the value of the land is
considerably more; or
(c) Rent to sower.
Good faith
Options:
(a) Right to acquire
improvements and pay
indemnity to BPS;
(b) Sell land to BP except if the
value of the land is
considerably more; or
(c) Rent to sower.
Good faith
(1) Landowner has right to collect
damages from BPS in any
case and the option to either:
(a) Acquire improvements
w/o paying for indemnity;
(b) Demolition or restoration;
or
(c) Sell to BP, or to rent to
sower
(2) Pay necessary expenses to
BPS.
PAGE 98
UP LAW BOC
Landowner
Bad faith
Same as when all acted in good
faith under Article 453
Bad faith
(1) Acquire improvement after
paying indemnity and
damages to BPS unless the
latter decides to remove.
(2) Subsidiarily liable to OM for
value of materials.
Bad faith
Options:
(a) Acquire improvements after
indemnity; subsidiarily liable
to OM for value of materials;
(b) Sell the land to BP except if
the value of the land is
considerably more; or
(c) Rent to sower.
Good faith
(1) Landowner has right to collect
damages from BPS in any
case and the option to either:
(a) Acquire improvements
w/o paying for indemnity;
(b) Demolition or restoration;
or
(c) Sell to BP, or to rent to
sower
(2) Pay necessary expenses to
BPS.
(3) Subsidiarily liable to OM.
Bad faith
Acquire improvements and pay
indemnity and damages to BPS
unless the latter decides to
remove materials.
Bad faith
(a) Right of retention until
necessary expenses are paid.
(b) Pay value of materials to OM
and pay him damages.
Bad faith
Same as when all acted in good
faith under Article 453
Good faith
(1) May remove improvements.
(2) Be indemnified for damages
in any event.
(3) Pay OM the value of the
materials.
BPS
Good faith
(1) Collect value of materials
primarily from BPS and
subsidiarily from landowner
(2) Collect damages from BPS
(3) If BPS acquires
improvements, absolute right
of removal in any event.
Good faith
(a) Collect value of materials
primarily from BPS and
subsidiarily from landowner.
(b) Collect damages from BPS.
(c) Absolute right to remove
materials in any event.
Bad faith
Same as when all acted in good
faith under Article 453
Good faith
(1) Remove materials if possible
w/o injury
(2) Collect value of materials
from BPS; subsidiarily from
landowner
Owner of Material
CIVIL LAW
Bad faith
(1) Right to necessary expenses.
(2) Pay value of materials to OM.
(3) Pay damages to OM/LO.
Bad faith
(1) No right to indemnity.
(2) Loses right to material.
PROPERTY
Good faith
(1) Receive indemnity for
damages.
(2) Absolute right of removal of
improvements in any event.
PAGE 99
UP LAW BOC
CIVIL LAW
Rules:
(1)
Mixture by will of the owners:
(a) Primarily governed by their stipulations.
Mixture
Kinds of Mixtures:
(1) Commixtion: mixture of solid things
(2) Confusion: mixture of liquid things
PROPERTY
Three Types
(1) Conjunction or Adjunction - process where 2
movables belonging to different owners are
attached to each other to form a single object.
(2) Mixture the union of material where the
components lose their identity.
Kinds:
(a) Commixtion mixture of solids
(b) Confusion mixture of liquids and gases
(3) Specification transforming/giving of a new
form to anothers material through labor.
Adjunction
Requisites:
(1) There are 2 movables belonging to 2 different
owners;
(2) They are united in such a way that they form a
single object; and
(3) They are so inseparable that their separation
would impair their nature or result in
substantial injury to either component.
Kinds of Adjunction:
(1) Inclusion or engraftment e.g. a diamond is
set on a gold ring
(2) Soldadura or soldering e.g. when lead is
united or fused to an object made of lead
(a) It is ferruminacion if both the accessory and
principal objects are of the same metal;
and
(b) Plumbatura, if they are of different metals
(3) Escritura or writing e.g. when a person writes
on paper belonging to another;
(4) Pintura or painting e.g. when a person
paints on canvas belonging to another;
(5) Tejido or weaving e.g. when threads
belonging to different owners are used in
making textile
Ownership of new object formed by adjunction
(1) If union was made in good faith
The owner of principal thing acquires the
accessory, with obligation to indemnify the
PAGE 100
UP LAW BOC
CIVIL LAW
(2)
PROPERTY
Definition:
Takes place when the work of a person is done on
the material of another, such material, in
consequence of the work itself, undergoes a
transformation.
Rules:
(1) To declare:
(a) The invalidity of a claim on a title; or
(b) The invalidity of an interest in property.
PURPOSE
PAGE 101
UP LAW BOC
CIVIL LAW
PROPERTY
REQUIREMENTS
REQUISITES OF AN ACTION TO QUIET
TITLE
PAGE 102
UP LAW BOC
(1)
(2)
(3)
(4)
(5)
(6)
CIVIL LAW
CHARACTERISTICS OF COOWNERSHIP
(1) Contracts ;
(2) Special laws; and
(3) The Civil Code
REQUISITES
DEFINITION
Co-ownership
PROPERTY
PRESCRIPTION/NONPRESCRIPTION OF ACTION
PRESCRIPTION OF ACTION
(1) When the plaintiff is in possession of the
property, the action to quiet title does not
prescribe.
The rationale for this rule has been aptly
stated thus:
The owner of real property who is in
possession thereof may wait until his
possession is invaded or his title is attacked
before taking steps to vindicate his right. A
person claiming title to real property, but not
in possession thereof, must act affirmatively
and within the time provided by the statute.
Possession is a continuing right as is the right
to defend such possession. So it has been
determined that an owner of real property in
possession has a continuing right to invoke a
court of equity to remove a cloud that is a
continuing menace to his title. Such a menace
is compared to a continuing nuisance or
trespass which is treated as successive
nuisances or trespasses, not barred by statute
until continued without interruption for a
length of time sufficient to affect a change of
title as a matter of law." [Pingol v. CA]
(2) When the plaintiff is not in possession of the
property, the action to quiet title may
prescribe.
(a) 10 yrs. ordinary prescription
(b) 30 yrs. extraordinary prescription
PAGE 103
UP LAW BOC
CIVIL LAW
CONTRACT
(3) Easement of Party Wall: co-ownership of partowners of a party wall (NCC 658)
PROPERTY
SOURCES OF CO-OWNERSHIP
Law,
contract,
succession,
testamentary
disposition or donation inter vivos, fortuitous
event or chance, and by occupancy
LAW
PAGE 104
UP LAW BOC
CIVIL LAW
Limitations:
That he use the thing in accordance with the
purpose for which it is intended.
RIGHTS OF CO-OWNERS
BY OCCUPANCY
BY FORTUITOUS EVENT OR BY
CHANCE
PROPERTY
SUCCESSION
Intestate succession: co-ownership between the
heirs before partition of the estate
NCC 1078. Where there are two or more heirs, the
whole estate of the decedent is, before its
partition, owned in common by such heirs, subject
to the payment of debts of the deceased.
For as long as the estate is left undivided the
heirs will be considered co-owners of the
inheritance.
If one of the heirs dies, his heirs will in turn be
co-owners of the surviving original heirs.
TESTAMENTARY DISPOSITION OR
DONATION INTER VIVOS
PAGE 105
UP LAW BOC
CIVIL LAW
EMBELLISHMENTS OR
IMPROVEMENTS
ON RENUNCIATION
RULES
PROPERTY
PAGE 106
UP LAW BOC
CIVIL LAW
Effect:
(1) Confers exclusive ownership of the property
adjudicated to a co-heir.
(2) Co-heirs shall be reciprocally bound to
warrant the title to and the quality of each
property adjudicated.
(3) Reciprocal obligation of warranty shall be
proportionate to the respective hereditary
shares of co-heirs.
(4) An action to enforce warranty must be
brought within 10 years from the date the
right accrues.
(5) The co-heirs shall not be liable for the
subsequent insolvency of the debtor of the
estate.
PARTITION OR DIVISION
PROPERTY
TERMINATION/
EXTINGUISHMENT
TOTAL DESTRUCTION OF THING OR LOSS OF
THE PROPERTY CO-OWNED
Is there still co-ownership if a building is
destroyed?Yes, over the land and the debris.
MERGER OF ALL INTERESTS IN ONE PERSON
ACQUISITIVE PRESCRIPTION
By whom
(1)
A third person. [NCC 1106]
(2)
A co-owner against the other co-owners.
Requisites for acquisitive prescription against coowners [Adille v CA (1988)]:
(1) A co-owner repudiates the co-ownership;
(2) The act of repudiation is clearly made known
to other co-owners;
(3) The evidence thereon is clear and conclusive;
and
(4) The co-owner has been in possession thru
open, continuous, exclusive and notorious
possession of the property for the period
required by law.
Note: there is a presumption that possession of a
co-owner is NOT adverse
PAGE 107
UP LAW BOC
Right of Possession
(jus possessionis)
Independent right
CIVIL LAW
Right to possess
(jus possidendi)
Incident to
ownership
REQUISITES
CHARACTERISTICS
ESSENTIAL
POSSESSION
DEGREES OF POSSESSION
OF
PROPERTY
Possession
DEFINITION
The holding of a thing or the enjoyment of a right.
[NCC 523]
CONCEPT OF POSSESSION
PAGE 108
UP LAW BOC
CIVIL LAW
PROPERTY
CASES OF POSSESSION
Possession for Oneself, or Possession
Exercised in Ones Own Name and Possession
in the Name of Another [NCC 524]
(1) In ones own name the fact of possession and
the right to such possession is found in the
same person.
(2) In the name of another the one in actual
possession is without any right of his own, but
is merely an instrument of another in the
exercise of the latters possession.
Kinds of possession in the name of another
(a) Necessary arises by operation of law
e.g. representatives who exercise possession
in behalf of a conceived child, juridical
persons, persons not sui juris and the conjugal
partnership
(b) Voluntary effected through the mutual
consent of the parties
(i) e.g. agents or administrators appointed
by the owner or possessor.
(ii) Third person may also voluntary exercise
possession in the name of another, but it
does not become effective unless ratified
by the person in whose name it is
exercised.
PAGE 109
UP LAW BOC
(a)
(b)
(c)
(d)
(e)
CIVIL LAW
ACQUISITION OF POSSESSION
PROPERTY
PAGE 110
UP LAW BOC
CIVIL LAW
PROPERTY
PAGE 111
UP LAW BOC
CIVIL LAW
OBLIGATIONS OF A POSSESSOR IN
GOOD FAITH
EFFECTS OF POSSESSION
PROPERTY
PAGE 112
UP LAW BOC
CIVIL LAW
PROPERTY
OBLIGATIONS OF A POSSESSOR IN
GOOD FAITH
(1) Reimburse the value of the fruits received and
which the legitimate possessor could receive;
(NCC 549)
(2) Pay in proportion to the charges, expenses of
cultivation and the net proceeds upon
cessation of good faith; (NCC 545)
(3) Costs of litigation; (NCC 550)
(4) Liability to the deterioration/loss of a thing
possessed in every case, including fortuitous
events. (NCC 552)
Rules:
(1) Lawful possessor can employ self-help (NCC
429)
(2) To consolidate title by prescription, the
possession must be under claim of ownership,
and it must be peaceful, public and
uninterrupted.
(3) It is only the conviction of ownership
externally manifested, which generates
ownership.
(4) Acts of possessory character done by virtue of
a license or mere tolerance by the real owner
are not sufficient and will not confer title by
prescription or adverse possession.
(5) The following cannot acquire title by
prescription:
(a) Lessees, trustees, pledges, tenants on
shares or planters and all those who hold
in the name or representation of another;
(b) Mere holders placed in possession of the
property by the owner, such as agents,
employees;
(c) Those holding in a fiduciary character, like
receivers, attorneys, depositaries and
antichretic creditors;
(d) Co-owner, with regard to common
property; Except: When he holds the same
adversely against all of them with notice
to them of the exclusive claim of
ownership.
(i) Possession of real property presumes
possession of the movables therein
(NCC 542);
PAGE 113
CIVIL LAW
PROPERTY
UP LAW BOC
ENTITLEMENT
TO
FRUITS
NECESSARY EXPENSES
(1) Imposed by the thing itself for its preservation
and have no relation to the desire or purpose
of the possessor.
(2) They are the cost of living for the thing and
must be reimbursed to the one who paid
them, irrespective of GF or BF.
(a) Only the possessor in GF may retain the
thing until he has been reimbursed
therefor.
(3) The
expenses
are
not
considered
improvements; they do not increase the value
of the thing, but merely prevent them from
becoming useless.
PAGE 114
UP LAW BOC
Right
reimbursement
retention
in
meantime (546)
CIVIL LAW
Possessor in BF
to
and
Reimbursement only
the
(546)
Necessary Expenses
Charges
Pending Fruits
Fruits Received
Possessor in GF
Note:
(1) Costs of litigation over the property shall be
borne by every possessor. [NCC 550]
(2) Improvements caused by nature or time shall
always inure to the benefit of the person who
has succeeded in recovering possession [NCC
551]
Includes all the natural accessions referred
to by articles 457-465, and all those that do
not depend upon the will of the possessor.
(e.g. widening of the streets, rising of
fountains of fresh or mineral water, increase
of foliage of trees)
PROPERTY
USEFUL EXPENSES
(1) Incurred to give greater utility or productivity
to the thing, e.g. Wall surrounding an estate,
an irrigation system, planting in an
uncultivated land, a fishpond, an elevator in
the building, electric lighting system
(2) They are reimbursed only to the possessor in
GF as a compensation or reward for him. A
possessor in BF cannot recover such
expenses.
(3) If the useful improvements can be removed
without damage to the principal thing, the
possessor in good faith may remove them,
unless the person who recovers the
possession refunds the expenses or pays the
increase in value which the thing may have
acquired by reason thereof.
PAGE 115
UP LAW BOC
Possessor in GF
Possessor in BF
Useful Expenses
CIVIL LAW
PROPERTY
of
Ornamental Expenses
Limited
right
removal (548)
Deterioration or Loss
Costs of Litigation
PAGE 116
UP LAW BOC
CIVIL LAW
PROPERTY
PAGE 117
UP LAW BOC
(c)
(d)
(e)
(f)
(g)
(1)
(2)
(3)
(4)
CIVIL LAW
POSSESSION
BY
ANOTHER;
IF
POSSESION HAS LASTED LONGER
THAN ONE YEAR; REAL RIGHT OF
POSSESSION NOT LOST AFTER 10
YEARS SUBJECT TO NCC 537
ABANDONMENT
PROPERTY
LOSS/TERMINATION OF
POSSESSION [NCC 555]
(1) By the abandonment of the thing;
(2) By an assignment made to another either by
onerous or gratuitous title;
(3) By the destruction or total loss of the thing, or
because it goes out of commerce;
PAGE 118
UP LAW BOC
CIVIL LAW
BY ORIGIN
CLASSIFICATION
NATURAL CHARACTERISTICS
CHARACTERISTICS
PROPERTY
KINDS OF ANIMALS
(1) Wildthose which live naturally independent
of man.
(2) Domesticatedthose which, being wild by
nature, have become accustomed to
recognize the authority of man. When they
observe this custom, they are placed in the
same category as domestic and when they
lose it, they are considered as wild.
(3) Domestic or Tamethose which are born and
reared ordinarily under the control and care of
man; they are under the ownership of man,
and do not become res nullius unless they are
abandoned.
Usufruct
CONCEPT [NCC 562]
Usufruct gives a right to enjoy the property of
another with the obligation of preserving its form
and substance, unless the title constituting it or
the law otherwise provides.
OBJECTS OF USUFRUCT
(1) Independent Rights
A servitude which is dependent on the
tenement to which it attaches cannot be the
object of usufruct.
(2) Things
Non-consumable things.
Consumable things, but only as to their
value if appraised, or on an equal quantity
and quality if they were not appraised.
(3) Unproductive things
e.g. sterile or absolutely unproductive land, or
things for mere pleasure, such as promenades,
statues or paintings, even if they do not
produce any utility.
PAGE 119
UP LAW BOC
CIVIL LAW
AS TO THE OBJECT
(1) Singular: only on particular property of the
owner.
(2) Universal: pertains to the whole property;
A universal usufructuary must pay the debts
of the naked owner, if stipulated. Article 758
and 759 on donations apply.
AS TO THE FRUITS
(1) Total: all consumed by the usufruct.
(2) Partial: only on certain aspects of the
usufructs fruits.
PROPERTY
BY OBJECT OF USUFRUCT
Usufruct may be constituted on the whole or a
part of the fruits of the thing or on a right,
provided it is not strictly personal or
intransmissible. [NCC 564]
RIGHTS
(1) Must not be strictly personal or
intransmissible.
(2) Usufruct over a real right is by itself a real
right.
(a) Right to receive present or future support
cannot be the object of the usufruct.
THINGS
(1) Normal: involves non-consummable things
where the form and substance are preserved.
(2) Abnormal or irregular: when the usufruct
includes things which cannot be used without
being consumed.
(a) The usufructuary has right to make use of
them under the obligation of paying their
appraised value at the termination of the
usufruct, if they were appraised when
delivered.
PAGE 120
UP LAW BOC
CIVIL LAW
Without
need
to The
owner
shall
reimburse the expenses reimburse
to
the
to the owners
usufructuary ordinary
cultivation
expenses
from the proceeds of
the fruits (not to exceed
the value of the fruits)
Belong to the
usufructuary
PROPERTY
PAGE 121
UP LAW BOC
CIVIL LAW
PROPERTY
PAGE 122
UP LAW BOC
CIVIL LAW
To Make An Inventory:
(1) Requisites:
(a) Immovables must be described; and
(b) Movables must be appraised because
they are easily lost or deteriorated.
(2) Concurrence of the owner in the making of the
inventory.
(3) Expenses for the making of the inventory are
borne by the usufructuary.
(4) The inventory may be in a private document,
except when immovables are involved. (a
public instrument is prescribed to affect 3rd
persons)
(5) Failure to make an inventory does not affect
the rights of the usufructuary to enjoy the
property and its fruits.
(a) A prima facie presumption arises that the
property was received by the usufructuary
in good condition.
(b) Even if he is already in possession, he may
still be required to make an inventory.
(6) Exception to the requirement of inventory
(a) When no one will be injured, the
usufructuary may be excused from this
obligation.
PROPERTY
OBLIGATIONS
AT THE BEGINNING OF THE USUFRUCT OR
BEFORE EXERCISING THE USUFRUCT
(1) To make, after notice to the owner or his
legitimate representative, an inventory of all
PAGE 123
UP LAW BOC
CIVIL LAW
(1)
Ordinary repairs:
(a) Such as are required by the wear and tear
due to the natural use of the thing and
are indispensable for its preservation;
(b) Deteriorations or defects arise from the
natural use of the thing;
(c) Repairs are necessary for the preservation
of the thing.
PROPERTY
PAGE 124
UP LAW BOC
CIVIL LAW
PROPERTY
PAGE 125
UP LAW BOC
CIVIL LAW
MORTGAGED
ENTIRE
Applies when:
(1) The usufruct is a universal one
(2) And the naked owner Has debts or is
obliged to make periodical payments
(whether or not there be known capital)
USUFRUCT
OVER
AN
PATRIMONY [NCC 598]
USUFRUCT
ON
PROPERTY [NCC 600]
PROPERTY
PAGE 126
UP LAW BOC
CIVIL LAW
EXPIRATION
OF
PERIOD
OR
FULFILLMENT
OF
RESOLUTORY
CONDITION IMPOSED ON USUFRUCT
BY
PERSON
CONSTITUTING
USUFRUCT
EXCEPTIONS
(1) In multiple usufructs: it ends at the death of
the last survivor (NCC 611)
(a) If simultaneously constituted: all the
usufructuaries must be alive (or at least
conceived) at the time of constitution.
(b) If successively constituted:
(i) If by virtue of donation all the
donees-usufructuaries must be living
at the time of the donation;
(ii) If by will there should only be 2
successive usufructuaries and both
must have been alive at the time of
testators death.
DEATH OF USUFRUCTUARY
PROPERTY
CONSUMABLE
USUFRUCT
OVER
PROPERTY [NCC 574]
(1) The usufructuary shall have the right to make
use of them under the obligation of paying
their appraised value at the termination of the
usufruct, if they were appraised when
delivered.
(2) If not appraised, he shall have the right to
return at the same quantity and quality, or
pay their current price at the time the usufruct
ceases.
EXTINGUISHMENT/
TERMINATION [NCC 603]
(1) By the death of the usufructuary, unless a
contrary intention clearly appears;
(2) By the expiration of the period for which it was
constituted, or by the fulfillment of any
resolutory condition provided in the title
creating the usufruct;
(3) By merger of the usufruct and ownership in
the same person;
(4) By renunciation of the usufructuary;
(5) By the total loss of the thing in usufruct;
(6) By the termination of the right of the person
constituting the usufruct; or
(7) By prescription.
PAGE 127
UP LAW BOC
Situation
Effect
CIVIL LAW
Owner
entitled
to
insurance money (no
interest
paid
to
usufructuary).
If he does not rebuild,
usufruct continues over
remaining land and/or
owner may pay interest
on value of both
materials and land
(607).
If
owner
rebuilds,
usufruct
does
not
continue
on
new
building, but owner
must pay interest on
value of land and old
materials.
PRESCRIPTION
Insurance
proceeds
goes
to
the
usufructuary.
No
obligation
to
rebuild.
Usufruct continues on
the land.
Owner has no share in
insurance proceeds.
When insurance
If
owner
rebuilds,
premium paid by owner usufruct subsists on
and usufructuary (par. 1) new building.
If owner does not
rebuild, interest upon
insurance
proceeds
paid to usufructuary.
Art. 608
If destroyed property is insured before termination of
the usufruct
PROPERTY
RENUNCIATION OF USUFRUCT
(1) Waiver: A voluntary surrender of the rights of
the usufructuary, made by him with the intent
to surrender them.
(2) Limitations:
(a) Must be express: tacit renunciation is not
sufficient;
(b) Does not need the consent of naked
owner; and
(c) If made in fraud of creditors, they may
rescind the waiver through an action
under Article 1381 (accion pauliana).
Effect
PAGE 128
UP LAW BOC
CIVIL LAW
ESSENTIAL FEATURES:
CHARACTERISTICS
Easement
PROPERTY
AFFECTING
NOT
CONDITIONS
USUFRUCT
THING
IN
EXPRORPIATION
OF
USUFRUCT [NCC 609]
3 SITUATIONS
(1) If naked owner alone was given the indemnity,
he has the option:
(a) To replace with equivalent thing; or
(b) To pay to the usufructuary legal interest
on the indemnity. This requires a security
to be given by the naked owner for the
payment of the interest.
(2) If both the naked owner and the usufructuary
were separately given indemnity, each owns
the indemnity given to him, the usufruct being
totally extinguished.
(3) If usufructuary alone was given the indemnity,
he must give it to the naked owner and
compel the latter to return either the interest
or to replace the property. He may even
deduct the interest himself, if the naked
owner fails to object.
PAGE 129
UP LAW BOC
CIVIL LAW
AS TO CAUSE OR ORIGIN
AS TO RECIPIENT OF BENEFITS
CLASSIFICATION
PROPERTY
PAGE 130
UP LAW BOC
CIVIL LAW
RELEVANCE OF
CLASSIFICATIONS
PROPERTY
and
GENERAL RULES
PAGE 131
UP LAW BOC
(1)
(2)
(3)
(4)
CIVIL LAW
OWNERS
VOLUNTARY EASEMENTS
LEGAL EASEMENTS
BY PRESCRIPTION
BY
WILL
OF
THE
(VOLUNTARY EASEMENTS)
PROPERTY
CREATION
BY TITLE
(1)
(2)
(3)
(4)
PAGE 132
UP LAW BOC
PROPERTY
CIVIL LAW
DOMINANT
ESTATE
RIGHTS
OWNER
(1)
(2)
(3)
(4)
PAGE 133
UP LAW BOC
CIVIL LAW
(1) Any person who may wish to use upon his own
estate any water of which he can dispose shall
have the right to make it flow through the
intervening estates, with the obligation to
indemnify their owners, as well as the owners
of the lower estates upon which the waters
may filter or descend.
AQUEDUCT
DRAWING WATER
DAM
DRAINAGE OF BUILDINGS
PROPERTY
NATURAL DRAINAGE
(1) Lower estates are obliged to receive the waters
which naturally and without the intervention of
man descend from the higher estates (as well
as the stones or earth which they carry with
them).
(2) The owner of the lower estate cannot do any
works that will impede this easement.
(3) The owner of the higher estate cannot do any
works that will increase the burden.
RIPARIAN BANKS
PAGE 134
CIVIL LAW
PROPERTY
UP LAW BOC
SLUICE GATE
RIGHT OF WAY
REQUISITES
(1) The dominant estate is surrounded by other
immovables owned by other persons;
PAGE 135
UP LAW BOC
CIVIL LAW
Notes on extinguishment:
(1) Extinguishment is NOT automatic. The owner
of the servient estate must ask for such
extinguishment.
(2) Indemnity paid to the servient owner must be
returned:
(a) If easement is permanent: value of the land
must be returned
(b) If easement is temporary: nothing is to be
returned
PROPERTY
Consists of the
damages only.
to
Necessary repairs
Dominant owner
spend on such.
Servient owner
spend on such.
Share in taxes
The dominant owner
shall reimburse a
proportionate share of
taxes to the proprietor
of the servient estate.
Rules on indemnity for estates enclosed through a
sale, exchange, partition or donation.
Sale, exchange or
Donation
partition
The donee shall pay
the donor indemnity.
EXTINGUISHMENT
(1) The owner has joined the dominant estate to
another abutting the public road.
(2) A new road is opened giving access to the
isolated estate.
PAGE 136
UP LAW BOC
PARTY WALL
Party Wall
CIVIL LAW
PROPERTY
Co-Ownership
Shares of the coowners cannot be
physically segregated
but they can be
physically identified.
NATURE
(1) A common wall which separates two estates,
built by common agreement at the dividing
line such that it occupies a portion of both
estates on equal parts.
(2) A party wall is a special form of co-ownership
(a kind of compulsory co-ownership).
(a) Each owner owns part of the wall but it
cannot be separated from the other
portions belonging to the others. A party
wall has a special characteristic that makes
it more of an easement as it is called by law.
(b) An owner may use a party wall to the extent
of the portion on his property.
Before
division
of
shares, a co-owner
cannot point to any
definite portion of the
property as belonging to
him.
None of the co-owners There is no such
may use the community limitation
property
for
his
exclusive
benefit
because he would be
invading the rights of
the others.
In a co-ownership, Any owner may free
partial renunciation is himself from
allowed.
contributing to the cost
of repairs and
construction of a party
wall by renouncing all
his rights thereto.
WHEN EXISTENCE OF EASEMENT OF PARTY
WALL IS PRESUMED
(1) In dividing walls of adjoining buildings up to
the point of common elevation.
(2) In dividing walls of gardens or yards situated in
cities, or towns, or in rural communities.
PAGE 137
UP LAW BOC
CIVIL LAW
NATURE
(1) Positive: Opening a window through a party
wall
(a) When a part owner of a party wall opens a
window therein, such act implies the
exercise of the right of ownership by the use
of the entire thickness of the wall.
(b) The easement is created only after the
lapse of the prescriptive period.
PROPERTY
PAGE 138
UP LAW BOC
CIVIL LAW
PROPERTY
PAGE 139
UP LAW BOC
MODES OF ACQUIRING
EASEMENT
BY TITLE
CIVIL LAW
EXTINGUISHMENT BY IMPOSSIBILITY
OF USE
MERGER
PROPERTY
BY PRESCRIPTION
Requisites
(1) The easement must be continuous and
apparent;
(2) The easement must have existed for 10 years;
and
(3) There is NO NEED for good faith or just title.
EXTINGUISHMENT OF
EASEMENTS
(1) By merger in the same person of the ownership
of the dominant and servient estates;
(2) By nonuser for ten years;
(3) When either or both of the estates fall into
such condition that the easement cannot be
used;
(4) By the expiration of the term or the fulfillment
of the condition, if the easement is temporary
or conditional;
(5) By the renunciation of the owner of the
dominant estate; or
(6) By the redemption agreed upon between the
owners of the dominant and servient estates.
PAGE 140
UP LAW BOC
CIVIL LAW
Injury is consequential.
Trespass
Injury is immediate.
Nuisance
NUISANCE V. TRESPASS
Nuisance
PROPERTY
PAGE 141
UP LAW BOC
Negligence
(3) Mixed
DOCTRINE
NUISANCE
CIVIL LAW
ATTRACTIVE
OF
PROPERTY
Nuisance
Whether
the
defendants use of his
property
was
unreasonable as to
plaintiff, without regard
to foreseeability of
injury.
NUISANCE V. NEGLIGENCE
Whether
it
was
unreasonable for the
defendant to act as he
did in view of the
threatened danger or
harm
to
one
in
plaintiffs position.
Principles
ordinarily
apply where the cause
of action is for harm
resulting from one act
which
created
an
unreasonable risk of
injury.
Liability
for
the Liability is based on a
resulting
injury
to want of proper care
others regardless of the
degree of care or skill
exercised to avoid such
injury.
Principles
ordinarily
apply where the cause
of
action
is
for
continuing harm caused
by
continuing
or
recurrent acts which
cause discomfort or
annoyance to plaintiff in
the use of his property.
CLASSES
ACCORDING TO NATURE
(1) Nuisance per se or at law
An act, occupation or structure which is a
nuisance at all times and under any
circumstances, regardless of location or
surroundings.
Per accidens
PAGE 142
UP LAW BOC
and
damages
are
CIVIL LAW
cumulative
Remedies
The remedies against a public nuisance are:
(1) A prosecution under the Penal Code or any
local ordinance:
(2) A civil action; or
(3) Extrajudicial abatement.
(a) It must be reasonably and efficiently
exercised
(b) Means employed must not be unduly
oppressive on individuals, and
(c) No more injury must be done to the
property or rights of individuals than is
necessary to accomplish the abatement.
(d) No right to compensation if property taken
or destroyed is a nuisance.
PUBLIC NUISANCE
REGULATION OF NUISANCES
NO PRESCRIPTION
Abatement
remedies.
PROPERTY
LIABILITY OF TRANSFEREES
The grantee of land upon which there exists a
nuisance created by his predecessors in title is
NOT responsible therefore merely because he
becomes the owner of the premises, or merely
because he permits it to remain.
He shall be liable if he knowingly continues the
nuisance. Generally, he is not liable for continuing
it in its original form, unless he has been notified
of its existence and requested to remove it, or has
actual knowledge that it is a nuisance and
injurious to the rights of others.
If the transferee cannot physically abate the
nuisance without legal action against another
person, then he shall not be liable for such
nuisance.
NATURE OF LIABILITY
PAGE 143
UP LAW BOC
CIVIL LAW
(1) Occupation
(2) By operation of Law
(3) Donation
(4) Tradition
(5) Intellectual Property
(6) Prescription
(7) Succession
Modes of Acqiring
Ownership
Remedies
The remedies against a private nuisance are:
(1) A civil action; or
(2) Extrajudicial abatement.
(a) The procedure for extrajudicial abatement
of a public nuisance by a private person will
also be followed.
(b) The person extrajudicially abating a
nuisance liable for damages if:
(i) If he causes unnecessary injury; or
(ii) If an alleged nuisance is later declared
by the courts to be not a real nuisance.
PRIVATE NUISANCE
PROPERTY
PAGE 144
UP LAW BOC
Title
Means
CIVIL LAW
HIDDEN TREASURE
He who by chance discovers hidden treasure in
anothers property: shall be allowed to the
finder.
SPECIAL RULES
PROPERTY
Cause
Remote cause
that
is
Directly
and Serves merely to give
immediately produces a the occasion for its
real right.
acquisition or existence.
Proximate cause
Essence of the right, Means whereby
which is to be created or essence
transmitted.
transmitted.
OCCUPATION
Note: Ownership of land cannot be acquired by
occupation.
REQUISITES
(a) The property must be a corporeal personal
property susceptible of appropriation;
(b) The property is either res nullius (no owner) or
res derelict (abandoned property);
(c) There is seizure or apprehension with the
intent to appropriate; and
(d) There is an observance of requisites or
conditions prescribed by law.
KINDS
Of Animals
(1) Wild or feral animals seizure (hunting/fishing)
in open season by means NOT prohibited.
(2) Tamed/domesticated animals General Rule:
belong to the tamer, but upon recovering
freedom, are susceptible to occupation
UNLESS claimed within 20days from seizure
by another.
(3) Tame/domestic animals not acquired by
occupation EXCEPT when ABANDONED.
Of Other Personal Property
(1) Abandoned may be acquired
(2) Lost
(3) Hidden treasure finder gets by occupation;
landowner gets by accession; EXCEPT in
CPG system, share goes to the partnership.
PAGE 145
UP LAW BOC
CIVIL LAW
KINDS OF DONATIONS
Future property
(1) Donations cannot comprehend future property.
(2) Future property is understood anything
which the donor cannot dispose of at the time
of the donation.
PROPERTY
DONATION
Donation is an act of liberality whereby a person
disposes gratuitously of a thing or right in favor of
another, who accepts it.
NATURE
REQUISITES
PAGE 146
UP LAW BOC
Acceptance must be
made during the
lifetime of the donor.
CIVIL LAW
Mortis causa
Acceptance must be
made after the death
of the donor, the
donation being
effective only after the
death of donor.
Acceptance during the
donors lifetime is
premature and
ineffective because
there can be no
contract regarding
future inheritance.
As to acceptance
As to effectivity
As to formalities
Characteristics:
(a) The transferor retains ownership and control of
the property while alive;
(b) The transfer is revocable at will before his
death; and
(c)The transfer will be VOID if the transferor
should survive the transferee.
PROPERTY
Propter Nuptias
Express acceptance
Necessary
May be made by minors
(FC 78)
As to minors
Cant be made by
minors
May include future
property (same rule as
wills)
As to future property
Cannot include future
property
If present property is
donated and property
regime is ACP, limited
to 1/5.
PAGE 147
UP LAW BOC
Inter vivos
Mortis causa
CIVIL LAW
Time Of Acceptance
Acceptance must be done during the lifetime of
the donor and the donee.
PERFECTION
Acceptance
(1) Donation is perfected upon the donors learning
of the acceptance.
(2) Acceptance may be made during the lifetime of
both donor and donee.
FORMALITIES REQUIRED
AS TO EFFECTIVITY OR EXTINGUISHMENT
(1) Pure donation is without conditions or
periods,
(2) Conditional donation is subject to suspensive
or resolutory conditions.
(3) With a term
PROPERTY
Upon acceptance by
the donee, but the
effect of such retroacts
to the time of death of
the donor.
As to reduction or suppression
When it is excessive or
inofficious,
being
preferred, it is reduced
only after the donations
mortis causa had been
reduced or exhausted.
Notes:
The NATURE of the act, whether its one of
disposition or of execution, is CONTROLLING to
determine whether the donation is mortis causa
or inter vivos.
What is important is the TIME of TRANSFER of
ownership even if transfer of property donated
may be subject to a condition or a term.
Whether the donation is inter vivos or mortis
causa depends on whether the donor intended
to transfer ownership over the properties upon
the execution of the deed. [Gestopa v. CA
(2002)]
AS TO CAUSE OR CONSIDERATION
(1) Simple - made out of pure liberality or because
of the merits of the donee.
(2) Remuneratory - made for services already
rendered to the donor.
(3) Onerous - imposes a BURDEN inferior in value
to property donated.
(a) Improper - burden EQUAL in value to
property donated
(b) Sub-modo or modal - imposes a prestation
upon donee as to how property donated will
be applied.
(c) Mixed donations e.g. sale for price lower
than value of property.
PAGE 148
UP LAW BOC
CIVIL LAW
IN GENERAL
(1) The donee may demand actual delivery of thing
donated;
EFFECTS OF DONATION /
LIMITATIONS
NCC 1027:
(1) The priest who heard the confession of the
testator during his last illness, or the minister
of the gospel who extended spiritual aid to him
during the same period;
(2) The relatives of such priest or minister of the
gospel within the fourth degree, the church,
order, chapter, community, organization, or
institution to which such priest or minister may
belong;
(3) A guardian with respect to testamentary
dispositions given by a ward in his favor before
the final accounts of the guardianship have
been approved, even if the testator should die
after the approval thereof; nevertheless, any
provision made by the ward in favor of the
guardian when the latter is his ascendant,
descendant, brother, sister, or spouse, shall be
valid;
(4) Any physician, surgeon, nurse, health officer or
druggist who took care of the testator during
his last illness; or
(5) Individuals, associations and corporations not
permitted by law to inherit.
PROPERTY
PAGE 149
UP LAW BOC
CIVIL LAW
Excessive/Inofficious Donations
A type of donation in which a person gives or
receives more than what he may give or receive by
will. [NCC 752]
Double donations
Rule: Priority in time, priority in right.
(1) If movable: one who first took possession in
good faith.
(2) If immovable: one who recorded in registry of
property in good faith
(a) If there is no inscription, the one who first
took possession in good faith.
(b) If there is no possession, one who can
present the oldest title.
PROPERTY
PAGE 150
UP LAW BOC
comprehend
future
CIVIL LAW
REVOCATION V. REDUCTION
Revocation
Total withdrawal of
Amount is only insofar
amount, whether the
as the legitime is
legitime is impaired or
prejudiced
not
Reduction
PROPERTY
Inofficious Donations
(1) The donation shall be reduced with regard to
the excess.
(2) But this reduction shall not prevent the
donations from taking effect during the life of
the donor, nor shall it bar the donee from
appropriating the fruits.
(3) Only those who, at the time of the donor's
death, have a right to the legitime and their
heirs and successors-in-interest may ask for
the reduction or inofficious donations.
(4) If, there being two or more donations, the
disposable portion is not sufficient to cover all
of them, those of the more recent date shall be
suppressed or reduced with regard to the
excess.
Scope of amount [NCC 750-752]
(1) The donations may comprehend all the present
property of the donor, or part thereof.
cannot
PAGE 151
UP LAW BOC
CIVIL LAW
himself;
not
Notes:
(1) Founded on moral duty: one who received a
donation must be grateful to his benefactor.
(2) Conviction is NOT necessary.
(3) Time to file action for revocation within 1yr
from knowledge of the offense.
PROPERTY
PAGE 152
UP LAW BOC
PROPERTY
CIVIL LAW
Limitation:
(1) He reserves in full ownership or in usufruct,
sufficient means for his support and for all
relatives who are at the time of the acceptance
of the donation are, by law, entitled to be
supported
Effect of non-reservation: reduction of the
donation
(2) He reserves sufficient property at the time of the
donation for the full settlement of his debts
Effect of non-reservation: considered to be a
donation in fraud of creditors, and donee may
be liable for damages
PAGE 153
UP LAW BOC
PROPERTY
CIVIL LAW
Effect
Liability (Fruits)
Reversion
Right to dispose of some of the things donated, or If the donor dies without exercising this right
of some amount which shall be a charge thereon
Transmissibility
PAGE 154
UP LAW BOC
Time of Action
Transmissibility
PROPERTY
Ingratitude
Effect
CIVIL LAW
Liability (Fruits)
PAGE 155
UP LAW BOC
TRADITION
CONCEPT
CIVIL LAW
DEFINITION
Prescription
PROPERTY
REQUISITES
(1) Pre-existence in the estate of the grantor of
the right to be transmitted;
(2) Just cause or title for the transmission;
Intention on the part of the grantor to grant and
on the part of the grantees to acquire;
(3) Capacity to transmit and to acquire; and
(4) An act that gives it outward form, physically,
symbolically, or legally.
PURPOSE
ACQUISITIVE PRESCRIPTION
KINDS OF PRESCRIPTION
RATIONALE
KINDS
(1) Real Tradition: physical delivery
(2) Constructive Tradition: when the delivery of
the thing is not real or material but consists
merely in certain facts indicative of the same
(a) Symbolical Tradition: done through the
delivery of signs or things which
represent that which is being
transmitted. (e.g. keys or title itself)
(b) Tradition by public instrument: consists in
the substitution of real delivery of
possession by a public writing with the
delivery of a document which evidences
the transaction.
(c) Tradicio longa manu: made by the grantor
pointing out to the grantee the thing to
be delivered.
(d) Tradicio brevi manu: takes place when the
grantee is already in possession of the
thing. (e.g. when the lessee buys the
thing leased to him)
Tradicion constitutum possessorium:
similar to brevi manu but in the opposite
PAGE 156
UP LAW BOC
Acquisitive Prescription
Requires inaction of
the owner out of
possession or neglect
of one with a right to
bring his action
Extinctive Prescription
CIVIL LAW
Requires
positive
action of the possessor
(a claimant) who is not
the
Owner
Applicable to all kinds
of rights, whether real
or personal
Results
in
the
acquisition
of
ownership or other real
rights in a person as
well as the loss of said
ownership or real rights
in another
Should be affirmatively
pleaded and proved to
bar the action or claim
of the adverse party
OTHER PURPOSES)
No title to registered land in derogation of the
title of the registered owner shall be acquired by
prescription or adverse possession.
REGISTERED LANDS
BY OFFENDER
NO PRESCRIPTION APPLICABLE
Applicable to
ownership and other
real rights
PROPERTY
EXTINCTIVE PRESCRIPTION
PAGE 157
UP LAW BOC
NOT statutory
Prescription
Laches
CIVIL LAW
OTHER ACTIONS
TO RECOVER IMMOVABLES
PRESCRIPTION OR LIMITATION
OF ACTIONS
PROPERTY
VOID CONTRACTS
(1) The action or defense for the declaration of
the inexistence of a contract does not
prescribe. [NCC 1410]
(2) The title is susceptible to direct as well as to
collateral attack. [Ferrer v. Bautista, 1994]
Laches
the Concerned with
effect of delay
the
DISTINGUISHED
PRESCRIPTION
FROM LACHES
Prescription
Concerned with
fact of delay
Statutory
Applies at equity
PAGE 158
UP LAW BOC
PROPERTY
PAGE 159
CIVIL LAW
(c)
When
there
is
any
written
acknowledgment of the debt by the
debtor
Civil actions are deemed commenced from
the date of the filing and docketing of the
complaint with the Clerk of Court. [Cabrera
v. Riano (1963)]
A written extrajudicial demand wipes out the
period that has already elapsed and starts
anew the prescriptive period [The Overseas
Bank of Manila v. Geraldez, (1979)]
Not all acts of acknowledgement of a debt
interrupt prescription. To produce such
effect, the acknowledgment must be
written, so that the payment, if not coupled
with the communication signed by the payor
would interrupt the running of the period of
prescription [PNB v. Osete (1968)
UP LAW BOC
PAGE 160
CIVIL LAW
UP LAW BOC
Obligations
IN GENERAL
DEFINITION
CIVIL LAW
SOURCES OF OBLIGATIONS
AS TO PERSONS OBLIGED
(1) Unilateral only one of the parties is bound
(2) Bilateral both parties are bound
(a) Reciprocal performance by one is
dependent on the performance by the
other
(b) Non-reciprocal performance by one is
independent of the other [Paras]
AS TO THE AFFIRMATIVENESS OR
NEGATIVENESS OF THE OBLIGATION
(1) Positive/Affirmative obligation to give or to
do
(2) Negative obligation not to give or not to do
CLASSIFICATION OF OBLIGATIONS
AS TO SANCTION
(1) Civil Obligation (or perfect obligation) the
sanction is judicial process
(2) Natural Obligation the sanction is the law
(3) Moral Obligation (or imperfect obligation)
the sanction is conscience or morality
AS TO SUBJECT MATTER
(1) Real obligation to give
(2) Personal obligation to do or not to do
PAGE 161
UP LAW BOC
NATURE AND
OBLIGATIONS
CIVIL LAW
OBLIGATION TO DO OR NOT TO DO
OF
Limited
Generic Thing
When
the
generic
objects
are
confined to a
particular
class.
EFFECT
Generic Thing
OBLIGATION TO GIVE
Specific Thing
Particularly
Object
is
designated or designated
physically
only by its
segregated
class/ genus/
from
all species.
others of the
same
class
[Art. 1460];
Identified by
individuality.
Cannot
be Can
be
substituted
substituted by
any of the
same
class
and
same
kind.
RIGHTS AND DUTIES OF PARTIES
Duties of the Debtor
Rights of the Creditor
To Give a Specific Thing
(1) To preserve or take (1) To compel delivery
care of the thing
[Art. 1165]
due [Art. 1163]
(2) To
recover
(2) To deliver the thing
damages in case of
itself [Art. 1165]
breach, exclusive or
(3) To deliver the fruits
in
addition
to
of the thing [Art.
specific
1164]
performance [Art.
(4) To
deliver
its
1165; 1170]
accessions
and (3) Entitlement
to
accessories
[Art.
fruits from the time
1166]
the obligation to
(5) To pay damages in
deliver arises [Art.
case of breach [Art.
1164]
1170]
(4) Not
to
be
compelled
to
receive a different
one, although of
the same value as,
or more valuable
than that which is
due [Art. 1244]
PAGE 162
UP LAW BOC
CIVIL LAW
delay is
Requisites:
(1) Obligation must be liquidated, due and
demandable.
(2) Non-performance by the debtor within the
period agreed upon.
(3) Demand, judicial or extra-judicial, by the
creditor.
Unilateral Obligations
Reciprocal Obligations
Those obliged to No delay if neither
deliver or to do performs.
something incur in
delay from the time
the obligee judicially
or
extrajudicially
demands from them
the fulfillment of their
obligation. [Art. 1169
par 1]
BREACH
Art. 1170. Those who in the performance of their
obligations are guilty of fraud, negligence, or
delay, and those who in any manner contravene
the tenor thereof, are liable for damages.
UP LAW BOC
CIVIL LAW
Fraud in the
Casual Fraud
Performance
(dolo causante)
(dolo incidente)
[Arts. 1338, 1344]
[Art. 1170]
Present during the Present during the
performance of a pre- time of birth or
existing obligation
perfection
of
the
obligation
Purpose is to evade Purpose is to secure
normal fulfilment of consent of another to
obligation
enter the contract
Results in breach
Results in vitiation of
consent
Obligee may recover Innocent party may
damages [Art. 1344]
annul the contract
Valid obligation
Voidable obligation
Effects:
(1) The debtor is liable for damages.
(2) The debtor is liable even if the loss is due to
fortuitous events.
(3) For determinate objects, the debtor shall
bear the risk of loss.
Mora accipiendi Delay on the part of the
creditor to accept the performance of the
obligation.
Requisites:
(1) Debtor offers performance.
(2) Offer must be in compliance with the
prestation.
(3) Creditor refuses performance without just
cause.
Effects:
(1) The responsibility of the debtor is reduced to
fraud and gross negligence.
(2) The debtor is exempted from risk of loss of
the thing which is borne by the creditor.
(3) The expenses incurred by the debtor for the
preservation of the thing after the mora shall
be chargeable to the creditor.
(4) If the obligation bears interest, the debtor
does not have to pay from the time of delay.
(5) The creditor is liable for damages.
(6) The debtor may relieve himself of the
obligation by consigning the thing.
Compensatio morae Delay of both parties in
reciprocal obligations.
Effects:
(1) Delay of the obligor cancels delay of obligee
(and vice versa) hence it is as if there is no
default.
(2) The liability of the first infractor shall be
equitably tempered by the courts. If it cannot
be determined which of the parties first
violated the contract, the same shall be
deemed extinguished, and each shall bear
his own damages. [Art. 1192]
PAGE 164
UP LAW BOC
THE
CIVIL LAW
Test of Negligence
Did the defendant in doing the alleged
negligent act use the reasonable care and
caution, which an ordinary and prudent person
would have used in the same situation? If not,
then he is guilty of negligence. [Mandarin Villa
Inc. vs. CA (1996)]
NEGLIGENCE
(CULPA)
IN
PERFORMANCE OF THE OBLIGATION
Art. 1172. Responsibility arising from negligence
in the performance of every kind of obligation is
also demandable, but such liability may be
regulated by the courts, according to the
circumstances.
The fault or negligence of the obligor consists in
the omission of that diligence which is required
by the nature of the obligation and corresponds
with the circumstances of the persons, of the
time and of the place. [Art. 1173]
Diligence Required [De Leon]
(1) By stipulation of the parties
(2) By law, in the absence of stipulation
Diligence of a good father of a family, if both the
contract and law are silent. [Art. 1173 par 2]
(3) Future negligence may be waived except in
cases where the nature of the obligation or
the public requires another standard of care
(i.e. common carriers)
Exceptions:
Common Carriers
Art. 1733. Common carriers, from the nature of
their business and for reasons of public policy,
are bound to observe extraordinary diligence in
the vigilance over the goods and for the safety
of the passengers transported by them,
according to all the circumstances of each case.
Such extraordinary diligence in the vigilance
over the goods is further expressed in articles
1734, 1735, and 1745, Nos. 5, 6, and 7, while the
extraordinary diligence for the safety of the
passengers is further set forth in articles 1755
and 1756.
PAGE 165
UP LAW BOC
CIVIL LAW
BREACH:
is
and
Culpa Aquiliana
Negligence
substantive
independent.
There may or may not
be a pre-existing
contractual obligation.
The
source
of
obligation
is
the
defendants
negligence itself.
The negligence of the
defendant must be
proved.
Proof of diligence in
the selection and
supervision of the
employee is a defense.
PAGE 166
CIVIL LAW
UP LAW BOC
Requisites:
(1) The person to whom the right of action
pertains must be indebted to the creditor
(2) The debt is due and demandable
(3) The creditor must be prejudiced by the
failure of the debtor to collect his debts due
him from third persons, either through
malice or negligence
(4) The debtors assets are insufficient (debtor is
insolvent)
Rescission / Resolution
Rescission [Art. 1380]
[Art. 1191]
Based
on
non- Based on lesion or
performance or non- fraud upon creditors.
fulfillment of obligation.
Action is instituted only Action is instituted by
by the injured party.
either party or by a
third person.
In some cases, court Court cannot grant a
may grant a term.
period or term within
which
one
must
comply.
Non-performance by the Non-performance by
other party is important. the other party is
immaterial.
PAGE 167
UP LAW BOC
CIVIL LAW
Accion Pauliana
Requisites:
(1) There is a credit in favour of the plaintiff prior
to the alienation by the debtor
(2) The debtor has performed a subsequent
contract conveying patrimonial benefit to
third person/s.
(3) The debtors acts are fraudulent to the
prejudice of the creditor.
(4) The creditor has no other legal remedy to
satisfy his claim.
(5) The third person who received the property is
an accomplice to the fraud.
Accion Subrogatoria
Not necessary that Credit must exist
creditors claim is prior before the fraudulent
to the acquisition of act
the right by the debtor
No need for fraudulent Fraudulent intent is
intent
required if the contract
rescinded is onerous
for Prescribes in 4 years
from the discovery of
the fraud
No
period
prescription
Accion Directa
Subsidiary liability of sublessee to the lessor for
rent due from the lessee
Art. 1652. The sublessee is subsidiarily liable to
the lessor for any rent due from the lessee.
However, the sublessee shall not be responsible
beyond the amount of rent due from him, in
accordance with the terms of the sublease, at
the time of the extra-judicial demand by the
lessor.
PAGE 168
UP LAW BOC
CIVIL LAW
After Fulfillment
Before Fulfillment
of
Fulfillment
Doctrine of Constructive
Suspensive Conditions
CONDITIONAL OBLIGATIONS
PURE OBLIGATIONS
PAGE 169
UP LAW BOC
Principle of
Conditions
Retroactivity
in
To Do/Not To Do
CIVIL LAW
Preservation
of
creditors rights [Art.
1187 par. 1] also applies
to obligations with a
resolutory condition.
Before Fulfillment
After Fulfillment
Exclusively
Condition and obligation are
upon the
valid.
Creditors Will
Condition and obligation are
void because to allow such
Exclusively
condition would be equivalent
upon
the
to sanctioning obligations
Debtors Will in
which are illusory. It also
case of a
constitutes
a
direct
Suspensive
contravention of the principle
Condition
of mutuality of contracts.
[Art. 1182]
There is nothing to demand
until the debtor wishes to.
Suspensive
To Give
In obligations to do or
not to do, the court
shall determine the
retroactive effect of
the condition that has
been complied with
[Art. 1187, par. 2]
The power of the court
includes
the
determination
of
whether or not there
will be any retroactive
effect. This rule shall
likewise
apply
in
obligations with a
resolutory condition
[Art. 1190 par. 3]
PAGE 170
UP LAW BOC
Exclusively
upon
the
Debtors Will in
case of a
Resolutory
Condition
[Art. 1179 par.
2]
CIVIL LAW
Without Debtors
With Debtors Fault/Act
Fault/Act
Loss
Obligation
is Obligation is converted
extinguished.
into one of indemnity
for damages.
Deterioration
Impairment to be Creditor may choose
borne by the creditor. between bringing an
action for rescission of
the obligation OR
bringing an action for
specific performance,
with damages in either
case.
Improvement
Improvement at the Improvement by the
debtors expense, the things nature or by
debtor shall ONLY time shall inure to the
have
usufructuary benefit of the creditor.
rights.
PAGE 171
UP LAW BOC
IMPOSSIBLE CONDITIONS
CIVIL LAW
CONDITION
Condition
When it is left
exclusively to the will
of the debtor, the very
existence
of
the
obligation is affected
Exerts an influence
upon
the
very
existence
of
the
obligation itself
AND
Term/Period
TERM/PERIOD
DISTINGUISHED
PAGE 172
UP LAW BOC
ADVANCE
OR
CIVIL LAW
PAYMENT
PAGE 173
UP LAW BOC
Alternative Obligations
CIVIL LAW
Facultative Obligations
The loss/impossibility
of one of the things
does not extinguish
the obligation.
Culpable loss of any of
the
objects
alternatively
due
before the choice is
made may give rise to
liability on the part of
the debtor.
FACULTATIVE
Facultative Obligations
OR
Loss/impossibility of
all object/prestation
due to fortuitous event
shall extinguish the
obligation.
Loss/impossibility of
the object/prestation
due to fortuitous event
is
sufficient
to
extinguish
the
obligation.
Alternative Obligations
ALTERNATIVE
OBLIGATIONS
PAGE 174
UP LAW BOC
CIVIL LAW
Exceptions:
(1) When the obligation expressly states that
there is solidarity
(2) When the law requires solidarity, i.e. quasidelicts
(3) When the nature of the obligation requires
solidarity
JOINT OBLIGATIONS
After Substitution is
Made
The
loss
or
deterioration of the
substitute on account
of the obligors delay,
negligence, or fraud,
renders the obligor
liable because once
the substitution is
made, the obligation
is converted into a
simple one with the
substituted thing as
the object of the
obligation.
Fortuitous Event
Debtors Fault
One Remains
Creditor may claim the Creditor may claim the
remaining
thing remaining
thing
without a right to without a right to
damages OR the damages OR the
price/value of the price/value of the
thing lost with right to thing lost with right to
damages.
damages.
INSTANCES
WHEN
OBLIGATION
IS
CONVERTED INTO A SIMPLE OBLIGATION
(1) The person with the right of choice has
communicated his choice [Arts. 1201, 1205
par 1]
(2) Only one prestation is practicable [Art. 1202]
LOSS
OF
SPECIFIC
THINGS
OR
IMPOSSIBILITY OF PERFORMANCE OF
ALTERNATIVE
Art. 1204: Debtors Choice
Fortuitous Event
Debtors Fault
All Lost
Debtor is released Creditor shall have a
from the obligation.
right to indemnity for
damages based on the
value of the last thing
which disappeared or
service which become
impossible.
Some
Debtor to deliver that Debtor to deliver that
which he shall choose which the creditor
from
among
the shall choose from
remainder.
among the remainder
without damages.
One Remains
Debtor to deliver that Debtor to deliver that
which remains.
which remains.
Art. 1205: Creditors Choice
Fortuitous Event
Debtors Fault
All Lost
Debtor is released Creditor may claim the
from the obligation.
price/value of any of
them with indemnity
for damages.
Some
Debtor to deliver that Creditor may claim
which he shall choose any of those subsisting
from
among
the without a right to
remainder.
damages
OR
price/value of the
thing lost with right to
damages.
PAGE 175
UP LAW BOC
CIVIL LAW
PAGE 176
UP LAW BOC
Joint Divisible
Obligations
In case of breach of
obligation by one of
the debtors, damages
due must be borne by
him alone.
CIVIL LAW
Indivisibility
Each creditor cannot
demand more than his
share and each debtor
is not bound to pay
more than his share
Effect
of
breach:
Obligation
is
converted
to
indemnity
for
damages
Only the debtors guilty
of breach of obligation
is liable for damages
Other debtors are not
liable if one debtor is
insolvent
As to Uniformity
(1) Uniform Parties are bound by the same
stipulation
(2) Non-uniform Parties are bound by different
conditions or terms
As to Parties Bound
(1) Active (solidarity among creditors) Each
creditor has the authority to claim and
enforce the rights of all, with the resulting
obligation of paying everyone of what
belongs to him.
(2) Passive (solidarity among debtors) Each
debtor can be made to answer for the others,
with the right on the part of the debtor-payor
to recover from the others their respective
shares.
(3) Mixed (solidarity among creditors and
debtors) Solidarity is not destroyed by the
fact that the obligation of each debtor is
subject to different conditions or periods. The
creditor can commence an action against
anyone of the debtors for the compliance
with the entire obligation minus the portion
or share which corresponds to the debtor
affected by the condition or period.
Solidarity
Each creditor may
demand the entire
prestation and each
debtor is bound to pay
the entire prestation
Effect
of
breach:
Solidarity remains
Joint Indivisible
Obligations
In case of breach
where one of the joint
debtors fails to comply
with his undertaking,
the obligation can no
longer be fulfilled or
performed. Thus, the
action
must
be
converted into one for
indemnity
for
damages.
Solidary Obligations
An obligation where there is concurrence of
several creditors, or of several debtors, or of
several creditors and several debtors, by virtue
of which, each of the creditors has the right to
demand, and each of the debtors is bound to
render, entire compliance with the prestation
which constitutes the object of the obligation
(obligacion solidaria).
Solidarity may exist although the creditors and
the debtors may not be bound in the same
manner and by the same periods and
conditions. [Art. 1211]
DISTINGUISHED FROM INDIVISIBILITY
Indivisibility
Refers
to
the
prestation that is not
capable of partial
performance
PAGE 177
UP LAW BOC
Demand Upon a
Solidary Debtor
The demand made
against one of them
shall not be an
obstacle to those
which
may
subsequently
be
directed against the
others so long as the
debt has not been
fully collected [Art.
1216].
The creditor may
proceed against any
one of the solidary
debtors
or
all
simultaneously [Art.
1216].
CIVIL LAW
Payment by a Debtor
PAGE 178
UP LAW BOC
Demand Upon a
Solidary Debtor
A creditors right to
proceed against the
surety
exists
independently of his
right
to
proceed
against the principal
be
CIVIL LAW
Rules
(1) Divisibility/indivisibility refers to the
performance of the prestation and not to
INDIVISIBLE OBLIGATIONS
Ones which cannot be validly performed in parts
[Tolentino]
DIVISIBLE OBLIGATIONS
Ones which are susceptible to partial
performance, that is, the debtor can legally
perform the obligation by parts and the creditor
cannot demand a single performance of the
entire obligation [Tolentino]
Payment by a Debtor
The solidary debtor
who
made
the
payment shall have
the right to claim from
his co-debtors the
share
which
corresponds to them
with interest, UNLESS
barred by prescription
or illegality [Art. 1218].
shall
The
obligation
extinguished.
PAGE 179
UP LAW BOC
(2)
(3)
(4)
(5)
(6)
PENAL
CIVIL LAW
CHARACTERISTICS OF PENALTY
(1) The penalty shall substitute the indemnity
for damages and payment of interest in
case of non-compliance [Art. 1226],
UNLESS:
(a) There is a stipulation to the contrary
(b) The obligor refuses to pay the penalty
(c) The obligor is guilty of fraud
(2) Debtor cannot exempt himself from the
performance of the principal obligation by
paying the stipulated penalty unless this
right has been expressly reserved for him
[Art. 1227].
(3) Creditor cannot demand the fulfillment of
the principal obligation and demanding the
satisfaction of the penalty at the same time
unless the right has been clearly granted to
him [Art. 1227]. Tacit or implied grant is
admissible.
(a) If the creditor has chosen fulfillment of
the principal obligation and the
performance
thereof
becomes
impossible without his fault, he may still
demand the satisfaction of the penalty.
(b) If there was fault on the part of the
debtor, creditor may demand not only
the satisfaction of the penalty but also
the payment of damages.
(c) If the creditor chooses to demand the
satisfaction of the penalty, he cannot
afterwards demand the fulfillment of
the obligation.
PURPOSES OF PENALTY
(1) Funcion coercitiva de garantia - to insure the
performance of the obligation.
(2) Funcion liquidatoria - to liquidate the
amount of damages to be awarded to the
injured party in case of breach of the
principal obligation (compensatory).
(3) Funcion estrictamente penal - to punish the
obligor in case of breach of the principal
obligation (punitive).
WITH
Effect
Creditor cannot be compelled to receive
partially the prestation in which the obligation
consists; neither may the debtor be required to
make the partial payment [Art. 1248], UNLESS:
(1) The obligation expressly stipulates the
contrary.
(2) The different prestations constituting the
objects of the obligation are subject to
different terms and conditions.
(3) The obligation is in part liquidated and in
part unliquidated.
OBLIGATIONS
CLAUSE
PAGE 180
UP LAW BOC
CIVIL LAW
the
Consequence: Defendant cannot demand return
of what he has delivered or the payment of the
value of the service.
NATURAL OBLIGATIONS
Art. 1423. Obligations are civil or natural. Civil
obligations give a right of action to compel their
performance. Natural obligations, not being
based on positive law but on equity and natural
law, do not grant a right of action to enforce
their performance, but after voluntary
fulfillment by the obligor, they authorize the
retention of what has been delivered or
rendered by reason thereof. Some natural
obligations are set forth in the following articles.
EXAMPLES OF NATURAL OBLIGATIONS
Art. 1424. When a right to sue upon a civil
obligation has lapsed by extinctive prescription,
the obligor who voluntarily performs the
contract cannot recover what he has delivered
or the value of the service he has rendered.
(1) There is a civil obligation
(2) The right to sue upon it has already lapsed
by extinctive prescription
(3) Obligor performs contract voluntarily
Consequence: Obligor cannot recover what he
has delivered or value of the service he
rendered.
PAGE 181
UP LAW BOC
is
effective
and
CIVIL LAW
BY WHOM
Payor must have free disposal of the thing due
and capacity to alienate it. [Art. 1239]
PAYMENT OR PERFORMANCE
Payment
EXTINGUISHMENT OF
OBLIGATIONS
Art. 1231. Obligations are extinguished:
(1) By payment or performance;
(2) By the loss of the thing due;
(3) By the condonation or remission of the
debt;
(4) By the confusion or merger of the rights of
creditor and debtor;
(5) By compensation;
(6) By novation.
Other causes of extinguishment of
obligations, such as annulment, rescission,
fulfillment of a resolutory condition, and
prescription, are governed elsewhere in this
Code.
PAGE 182
UP LAW BOC
CIVIL LAW
Requisites:
(1) There is a plurality of debts
(2) Debts are of the same kind
(3) Debts are owed to the same creditor and by
the same debtor
(4) All debts must be due, UNLESS parties so
stipulate, or when application is made by
the party for whose benefit the term has
been constituted
(5) Payment made is not sufficient to cover all
debts [Art. 1252]
APPLICATION OF PAYMENTS
Designation of the debt to which should be
applied a payment made by a debtor who owes
several debts to the same creditor.
Form of Payment
PLACE OF PAYMENT
(1) In the place designated in the obligation.
(2) In the absence of stipulation
(a) If obligation is to deliver a determinate
thing: wherever the thing might be at
the moment the obligation was
constituted.
(b) In any other case: Domicile of debtor
[Art. 1251]
PAGE 183
UP LAW BOC
Cession
Plurality of creditors
Debtor
must
be
partially or relatively
insolvent
Universality
of
property is ceded
Merely releases debtor
for the net proceeds of
things
ceded
or
assigned, unless there
is contrary intention
Involves all properties
of debtor
Creditor does not
become owner of the
ceded property
CIVIL LAW
Dacion en pago
One creditor
Debtor not necessarily
in state of financial
difficulty
Thing delivered is
equivalent
of
performance
Extinguishes
obligation
to the
extent of the value of
the thing delivered, as
agreed upon, proved
or implied from the
conduct of the creditor
Does not involve all
properties of debtor
Creditor
becomes
owner
Requisites:
(1) There is a plurality of debts
(2) Partial or relative insolvency of debtor
(3) Acceptance of the cession by the creditors
[Art. 1255]
Rules on Application
(1) Preferential right of debtor - debtor has the
right to select which of his debts he is
paying.
(2) The debtor makes the designation at the
time he makes the payment.
(3) If not, the creditor makes the application, by
so stating in the receipt that he issues,
unless there is cause for invalidating the
contract.
(4) If neither the creditor nor debtor exercises
the right to apply, or if the application is not
valid, the application is made by operation
of law.
(5) If debt produces interest, the payment is not
to be applied to the principal unless the
interests are covered.
(6) When no application can be inferred from
the circumstances of payment, it is applied:
(a) to the most onerous debt of the debtor;
or (b) if debts due are of the same nature
and burden, to all the debts in proportion
(7) Rules of application of payment may not be
invoked by a surety or solidary guarantor.
Rules on application of payment cannot be
made applicable to a person whose obligation
as a mere surety is both contingent and
singular. There must be full and faithful
compliance with the terms of the contract.
[Reparations Commission vs. Universal Deep Sea
Fishing Corp (1978)]
DATION IN PAYMENT
Delivery and transmission of ownership of a
thing by the debtor to the creditor as an
accepted equivalent of the performance of the
obligation (dacion en pago).
Requisites:
(1) Existence of a money obligation
(2) Alienation to the creditor of a property by
the debtor with the creditors consent
(3) Satisfaction of the money obligation
PAYMENT BY CESSION
Special form of payment where the debtor
assigns/abandons ALL his property for the
benefit of his creditors in order that from the
proceeds thereof, the latter may obtain
payment of their credits.
PAGE 184
UP LAW BOC
CIVIL LAW
Requisites of Consignation
(1) There is a debt due
(2) Consignation is made because of some
legal cause
(a) There was tender of payment and creditor
refuses without just cause to accept it
(b) Instances when consignation alone would
suffice as provided under Art. 1256
(3) Previous notice of consignation was given to
those persons interested in the performance
of the obligation
(4) Amount or thing due was placed at the
disposal of the court
(5) After the consignation has been made, the
persons interested were notified thereof
When Tender and Refusal Not Required [Art.
1256]
(1) Creditor is absent or unknown, or does not
appear at the place of payment.
(2) Creditor is incapacitated to receive the thing
due at the time of payment.
(3) Without just cause, creditor refuses to give
receipt.
(4) Two or more persons claim the same right
to collect.
(5) Title of the obligation has been lost.
What Constitutes Valid Consignation
In order that the consignation of the thing due
may release the obligor, it must first be
announced to the persons interested in the
fulfilment of the obligation.
The consignation shall be ineffectual if it is not
made strictly in consonance with the provisions
which regulate payment. [Art. 1257]
How Consignation is Made
Consignation shall be made by depositing the
things due at the disposal of judicial authority,
before whom the tender of payment shall be
proved, in a proper case, and the announcement
of the consignation in other cases.
The consignation having been made, the
interested parties shall also be notified thereof.
PAGE 185
UP LAW BOC
CIVIL LAW
Requisites:
(1) Event could not have been foreseen at the
time of the constitution of the contract.
(2) Event makes performance extremely
difficult but not impossible.
(3) Event is not due to any act of the parties.
(4) Contract is for future prestation.
Partial Impossibility
Courts shall determine whether it is so
important as to extinguish the obligation.
(1) If debtor has performed part of the
obligation when impossibility occurred,
creditor must pay the part done as long as
he benefits from it.
(2) If debtor received full payment from
creditor, he must return excess amount
corresponding to part which was impossible
to perform.
Subjective Impossibility
Where there is no physical or legal loss, but the
thing belongs to another, the performance by
the debtor becomes impossible. The debtor
must indemnify the creditor for damages.
Partial loss
Art. 1264: Partial loss due to a fortuitous event
does not extinguish the obligation; thing due
shall be delivered in its present condition,
without any liability on the part of the debtor,
UNLESS the obligation is extinguished when
the part lost was of such extent as to make the
thing useless.
Obligation to Deliver a
Generic Thing
Loss of a generic thing
does not extinguish an
obligation, EXCEPT in
case of delimited
generic things, where
the kind or class is
limited itself, and the
whole class perishes.
PAGE 186
UP LAW BOC
CIVIL LAW
EFFECTS
(1) Both debts are extinguished to the
concurrent amount, even though the
creditors and debtors are not aware of the
compensation.
(2) Accessory obligations are also extinguished.
COMPENSATION
CONDONATION OR REMISSION OF
THE DEBT
An act of liberality, by virtue of which, without
receiving any equivalent, creditor renounces the
enforcement of the obligation. The obligation is
extinguished either in whole or in such part of
the same to which remission refers.
REQUISITES
(1) Debt must be existing and demandable.
(2) Renunciation must be gratuitous; without
any consideration.
(3) Debtor must accept the remission. [Art.
1270]
EFFECT
Renunciation of the principal debt shall
extinguish the accessory obligations, but
remission of the latter leaves the principal
obligation in force. [Art. 1273]
EXPRESS CONDONATION
Made formally; in accordance with forms of
ordinary donations. [Art. 1270]
IMPLIED CONDONATION
(1) Whenever the private document in which
the debt is found is in the possession of the
debtor, it shall be presumed that the
creditor delivered it voluntarily, unless the
contrary is proved. [Art. 1272]
(2) Delivery of a private document evidencing
credit made voluntarily by the creditor to
the debtor implies the renunciation of the
action of creditor against the latter. [Art.
1272]
(3) Accessory obligation of pledge has been
remitted when thing after its delivery is
found in the possession of the debtor or
third person. [Art. 1274]
PAGE 187
UP LAW BOC
With
debtors
consent
With
debtors
knowledge
but without
consent
Without
debtors
knowledge
CIVIL LAW
Right of a Guarantor
A guarantor may set up compensation as
regards what the creditor may owe the principal
debtor. (Art. 1280)
Confusion
PAGE 188
UP LAW BOC
NOVATION
CIVIL LAW
Test of Incompatibility
Whether or not the old and new obligation can
stand together, each one having an
independent existence. No incompatibility exists
when they can stand together. Hence, there is
no novation. Incompatibility exists when they
cannot stand together. Hence, there is novation.
KINDS OF NOVATION
As to form
(1) Express declared in an unequivocal terms
(2) Implied the old and new obligations are on
every point incompatible with each other
Incompatible
Compatible Conditions
Conditions
(a) Fulfillment of both (a) Original
conditions:
new
obligation
is
obligation
becomes
extinguished,
demandable
while
new
(b) Fulfillment
of
obligation
condition concerning
exists
the original obligation: (b) Demandability
old
obligation
is
shall be subject
revived; new obligation
to fulfillment/
loses force
nonfulfillment
(c) Fulfillment
of
of the condition
condition concerning
affecting it
the new obligation: no
novation; requisite of a
previous valid and
effective
obligation
lacking
If Original
Obligation
is Void
If New
Obligation
is Void
PAGE 189
UP LAW BOC
As to effect
(1) Total
(2) Partial
Total
(1) Transfers to the
person subrogated
the credit with all
the rights thereto
appertaining, either
against the debtor
or third persons.
(2) Obligation is not
extinguished, even
if the intention is to
pay it.
(3) Defenses against
the old creditor are
retained,
unless
waived by the
debtor.
CIVIL LAW
Subrogation
Transfers to the person subrogated the credit
with all the rights thereto appertaining, either
against the debtor or against third persons, be
they guarantors or possessors of mortgages,
subject to stipulation in a conventional
subrogation. [Art. 1303]
Expromision
Delegacion
Requisites
(1) Consent of the Consent of old debtor,
creditor and the new new
debtor,
and
debtor
creditor
(2) Knowledge
or
consent of the old
debtor
is
not
required
Effects
(1) Old
debtor
is (1) Insolvency of the
released
new debtor revives
(2) Insolvency of the
the obligation of
new debtor does
the old debtor if it
not revive the old
was anterior and
obligation in case
public, and known
the old debtor did
to the old debtor.
not
agree
to (2) New debtor can
expromision
demand
(3) If with knowledge
reimbursement of
and consent of old
the entire amount
debtor, new debtor
he has paid from
can
demand
the original debtor.
reimbursement of
He may compel
the entire amount
creditor
to
paid and with
subrogate him to
subrogation
of
all of his rights.
creditors rights.
(4) If
without
knowledge of the
old debtor, new
debtor can demand
reimbursement
only up to the
extent that the
latter has been
benefited without
subrogation
of
creditors rights.
Partial
A creditor, to whom
partial payment has
been
made, may
exercise his right for
the remainder, and
shall be preferred to
the person subrogated
in his place in virtue of
the partial payment.
As to Essence
(1) Objective/ Real
(2) Subjective/ Personal
(a) Substitution of debtors
(i) Expromision
(ii) Delegacion
(b) Subrogation of a third person to the
rights of the creditor
(i) Conventional
(ii) Legal
OBJECTIVE NOVATION
(1) Change of the subject matter
(2) Change of cause or consideration
(3) Change of the principal conditions or terms
SUBJECTIVE NOVATION
Substitution of Debtors
Expromision
Delegacion
Initiative for change Debtor
(delegante)
does not emanate from offers or initiates the
the debtor, and may change,
and
the
even be made without creditor (delegatorio)
his knowledge.
accepts a third person
(delegado)
as
consenting
to
the
substitution.
PAGE 190
UP LAW BOC
CIVIL LAW
Requisites:
(1) It must be manifested by the concurrence of
the offer and acceptance [Arts. 1319-1326].
(2) The contracting parties must possess the
necessary legal capacity [Arts. 1327-1329].
CONSENT
ESSENTIAL REQUISITES
Relativity
Mutuality
Autonomy
Contracts
Conventional
Assignment of credit
subrogation
Debtors consent is Debtors consent is not
necessary.
required.
Extinguishes
an Refers to the same
obligation and gives right which passes
rise to a new one.
from one person to
another,
without
modifying
or
extinguishing
the
obligation.
Defects/vices in the Defects/vices in the
old obligation are old obligation are not
cured.
cured.
Legal Subrogation takes place by operation of
law
Legal subrogation is not presumed, except in
the following circumstances:
(1) When creditor pays another creditor who is
preferred, even without the debtors
knowledge
(2) When a third person not interested in the
obligation pays with the express or tacit
approval of the debtor
(3) When, even without the knowledge of the
debtor, a person interested in the fulfillment
of the obligation pays, without prejudice to
the effects of confusion as to the latters
share [Art. 1302]
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. 1431]
Estoppel is effective only as between the parties
thereto or their successors in interest. [Art. 1439]
ELEMENTS OF ESTOPPEL
(1) A person makes an admission or
representation to another
(2) There is reliance by the other on such
admission or representation
(3) The other person acts upon such admission
or representation
PAGE 191
UP LAW BOC
CIVIL LAW
Without consideration
CAPACITY TO CONTRACT
Persons incapacitated to give consent (Art. 1327)
(1) Minors, except
(a) For necessaries [Art.1427]
(b) Estoppel where the minor actively
misrepresents his age
Offeror
cannot Offeror may withdraw
unilaterally withdraw by
communicating
his offer.
withdrawal
to the
offeree
before
acceptance.
With consideration
OPTION CONTRACT
A preparatory contract in which one party
grants to the other, for a fixed period, the option
to decide whether or not to enter into a principal
contract [Art. 1324]
Exceptions:
(1) Real contracts, such as deposit, pledge and
commodatum, are not perfected until the
delivery of the object of the obligation [Art.
1316]
(2) Formal contracts, where the law requires
that a contract be in some form or be
proved in a certain way [Art. 1356]
ACCEPTANCE
Requisites of acceptance:
(1) Unqualified and unconditional, i.e. it must
conform with all the terms of the offer,
otherwise it is a counter-offer [Art. 1319]
(2) Communicated to the offeror and learned by
him [Arts. 1319, 1322]. If made through an
agent, the offer is accepted from the time
the acceptance is communicated to such
agent.
(3) Express/implied, but is not presumed.
PAGE 192
UP LAW BOC
Mistake of Fact
When one or
both parties
arrive at an
erroneous
conclusion on
the
interpretation
of a question
of law or its
legal effects.
Mistake of Law
CIVIL LAW
Mutual
Mistake
(1) Must be as
to
the
legal
effect of
an
agreement
(2) Must be
mutual
(3) Real
purpose of
the parties
must have
been
frustrated
When one or
both
contracting
parties believe
that a fact
exists when in
reality it does
not, or vice
versa.
Circumstances to consider:
(1) Relationship of the parties (family, spiritual,
confidential etc.)
(2) That the person unduly influenced was
suffering from infirmity (mental weakness,
ignorance etc.) [Art.1337]
PAGE 193
UP LAW BOC
CIVIL LAW
Exceptions:
(1) Things which are outside the commerce of
men
(2) Intransmissible rights
(3) Future inheritance except in cases
authorized by law
(4) Impossible things or services
(5) Objects which are indeterminable as to their
kind, the genus should be expressed
Requisites:
(1) Must be within the commerce of men [Art.
1347]
(2) Must not be impossible, legally or physically
[Art.1348]
(3) For things as object of contract, must be in
existence or capable of coming into
existence [See Arts. 1461, 1493, 1495]
(4) Must be determinate or determinable,
without the need of a new contract between
the parties [Arts. 1349, 1460, par.2]
OBJECT OF CONTRACTS
Relative Simulation
Simulation of Contracts
Takes place when the parties do not really want
the contract they have executed to produce the
legal effects expressed by its wordings. It may
be absolute or relative [Arts. 1345-1346]
Absolute Simulation
PAGE 194
UP LAW BOC
CIVIL LAW
CAUSE OF CONTRACTS
The essential and impelling reason why a party
assumes an obligation [Manresa]. Motive, on the
other hand, is the particular reason for a
contracting party which does not affect the
other.
REQUISITES
(1) Must exist at the time of the contract is
entered into [Arts. 1352, 1409, par. 3]
(2) Must be lawful (ibid).
(3) Must be true or real [Art.1353]
Pure
Beneficence
Mere
liberality of
the
benefactor
Motive
Remote reason for the
contract
Psychological
and
purely personal reason
Differs
for
each
contracting party
Illegality does not
affect existence or
validity of contract
PAGE 195
UP LAW BOC
(2)
(3)
(4)
(5)
(6)
(7)
CIVIL LAW
Cause
Effect
Falsity of cause Contract with a false cause is
cause
is merely revocable/voidable.
stated but is
untrue
Lesion
or
inadequacy of
cause cause is
not
proportionate to
object
FORM OF CONTRACTS
General rule: Contracts shall be obligatory, in
whatever form they may have been entered into,
provided all the essential requisites for their
validity are present.
KINDS OF CONTRACTS
PAGE 196
UP LAW BOC
CIVIL LAW
RESCISSIBLE CONTRACTS
REQUISITES
(1) Meeting of the minds of the parties
(2) There is a written instrument which,
however, does not express their true
intention
(3) By reason of mistake, fraud, inequitable
conduct or accident [Art. 1359]
REFORMATION OF
INSTRUMENTS
PAGE 197
UP LAW BOC
CIVIL LAW
Effects of Rescission
It creates an obligation to return the things
which were the object of the contract, together
with their fruits, and the price with its interests.
PAGE 198
UP LAW BOC
VOIDABLE CONTRACTS
CIVIL LAW
UNENFORCEABLE CONTRACTS
Effects of Annulment
The contracting parties shall restore to each
other the things which have been the subject
matter of the contract, with their fruits, and the
price with its interest, except in cases provided
by law. [Art. 1398]
Effect of Ratification
It cleanses the contract from all its defects from
the moment it was constituted [Art. 1396]
PAGE 199
UP LAW BOC
CIVIL LAW
VOID OR INEXISTENT
CONTRACTS
KINDS OF UNENFORCEABLE
CONTRACTS
(1) Unauthorized contracts those entered into
by one who has no authority or legal
representation or who has acted beyond his
powers [Art.1403, par.1]
(2) Those which did not comply with the Statute
of Frauds [Art.1403, par.2]
(3) Those where both parties are incapable of
giving consent to a contract [Art.1403, par.3]
(2)
(3)
(4)
PAGE 200
UP LAW BOC
PAGE 201
CIVIL LAW
UP LAW BOC
Rescissible
Damage to a party or to a
third person.
Voidable
Unenforceable
Defect
Vitiation of consent
Without or in excess of
authority,
or
doesnt
comply with Statute of
Fraud, or both parties are
incapacitated.
Effect
Valid until annulled.
Cannot be enforced by
court action.
Grounds
Art. 1390
Art. 1403
(1) Those where one of the (1) Those entered into in
parties is incapable of
the name of another
giving consent to a
person by one who has
contract;
been given no authority
or legal representation,
or who has acted
beyond his powers;
(2)Those
where
the
consent is vitiated by
mistake,
violence,
intimidation,
undue
influence or fraud.
(2) Those that do not
comply
with
the
Statute of Frauds as set
forth in this number. In
the following cases an
agreement hereafter
made
shall
be
unenforceable
by
action, unless the
same, or some note or
memorandum, thereof,
be in writing, and
subscribed by the party
charged, or by his
agent;
evidence,
therefore,
of
the
agreement cannot be
received without the
writing, or a secondary
evidence
of
its
contents:
(a) An agreement that by
its terms is not to be
performed within a
year from the making
thereof;
(b) A special promise to
answer for the debt,
default, or miscarriage
of another;
(c) An agreement made in
consideration
of
marriage, other than a
mutual promise to
marry;
PAGE 202
Void
CIVIL LAW
UP LAW BOC
Rescissible
Necessary.
Cant be ratified.
Prescriptible.
Assailable by a party or by a third
party who is damaged.
Voidable
Unenforceable
(d) An agreement for the
sale of goods, chattels
or things in action, at
a price not less than
five hundred pesos,
unless the buyer
accept and receive
part of such goods
and chattels, or the
evidences, or some of
them, of such things
in action or pay at the
time some part of 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 of
the sale, of the
amount and kind of
property sold, terms
of sale, price, names
of the purchasers and
person on whose
account the sale is
made, it is a sufficient
memorandum;
(e) An agreement for the
leasing for a longer
period than one year,
or for the sale of real
property or of an
interest therein;
(f) A representation as to
the credit of a third
person.
Void
CIVIL LAW
PAGE 203
UP LAW BOC
EFFECT OF CONTRACTS
OF
THE
CIVIL LAW
OFFICIOUS
LIABILITIES
MANAGER
(4)
(3)
(2)
(1)
Requisites:
(1) The property or business is abandoned by its
owner
(2) One voluntarily takes charge of the agency or
management of the business or property
(3) Such taking charge was without any
authorization from the owner, whether
express or tacit.
Quasi-Contracts
Art. 2142. Certain lawful, voluntary and
unilateral acts give rise to the juridical relation
of quasi-contract to the end that no one shall be
unjustly enriched or benefited at the expense of
another.
NEGOSTIORUM GESTIO
Art. 2144. Whoever voluntarily takes charge of
the agency or management of the business or
property of another, without any power from the
latter, is obliged to continue the same until the
termination of the affair and its incidents, or to
require the person concerned to substitute him,
if the owner is in a position to do so. This
juridical relation does not arise in either of these
instances:
(1) When the property or business is not
neglected or abandoned;
(2) If in fact the manager has been tacitly
authorized by the owner. In the first case, the
provisions of articles 1317, 1403, No. 1, and
PAGE 204
UP LAW BOC
CIVIL LAW
SOLUTIO INDEBITI
Art. 2154. If something is received when there is
no right to demand it, and it was unduly
delivered through mistake, the obligation to
return it arises.
Art. 2155. Payment by reason of a mistake in the
construction or application of a doubtful or
difficult question of law may come within the
scope of the preceding article.
OTHER QUASI-CONTRACTS
Art. 2164. When, without the knowledge of the
person obliged to give support, it is given by a
stranger, the latter shall have a right to claim
the same from the former, unless it appears
that he gave it out of piety and without
intention of being repaid.
PAGE 205
UP LAW BOC
PAGE 206
CIVIL LAW
PAGE 207
UP LAW BOC
ESSENTIAL REQUISITES OF A
CONTRACT OF SALE
ESSENTIAL ELEMENTS OF A VALID
CONTRACT OF SALE
[Coronel v. Court of Appeals (1996); De Leon
(2010)]:
(1) Consent or meeting of the minds to transfer
ownership in exchange for the price
(2) Being a consensual contract, the contract of
sale is perfected at the moment there is a
meeting of the minds upon the thing which
is the object of the contract and upon the
price. [Art. 1475]
REQUISITES:
(1) Capacity
(2) Offer and acceptance
(3) No vitiation of consent
Exceptions to consent being a requisite:
(1) Expropriation
(2) Ordinary execution sale
(3) Judicial foreclosure sale
(4) Extra-judicial foreclosure sale
Special Case: If sale involves the conjugal
property of spouses, consent must be given by
both.
SALES
PAGE 208
CIVIL LAW
NON-ESSENTIAL ELEMENTS OF A
CONTRACT OF SALE
(1) Natural those deemed to exist in certain
contracts in the absence of any contrary
stipulations.
(2) Accidental those which may be present or
absent depending on the stipulations of the
parties.
UP LAW BOC
OBLIGATIONS CREATED
Art. 1165, CC. 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.
If the thing is indeterminate or generic, he may
ask that the obligation be complied with at the
expense of the debtor.
If 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 for any fortuitous event until he has
effected the delivery.
Specific or Determinate Thing capable of
particular designation, e.g. this car, the car with
plate no. XNY 200
Generic or Indeterminate Thing refers only to a
class, to a genus, and cannot be pointed out
with particularity, e.g. a car (genus
nunquamperit)
NATURE OF OBLIGATIONS CREATED PER
DEFINITION IN ART. 1458[Villanueva]
(1) For the SELLER:
(a)To transfer ownership and
(b)To deliver possession of the subject
matter
(2) For the BUYER: To pay the price
CHARACTERISTICS OF A CONTRACT
OF SALE
SALES
PAGE 209
CIVIL LAW
Donation
Gratuitous
by
DONATION
Sale
Onerous
Perfected
consent
is
UP LAW BOC
For
a
specific
customer
Not within Statute of
Frauds
Goods
are
manufactured
or
procured
in
the
ordinary course of
business
For the general market,
whether on hand or not
Governed by Statute of
Frauds
The fact that the object were made by the seller
only when customers placed their orders, does
not alter the nature of the contract of sale, for it
only accepted such orders as called for the
employment of such materials as it ordinarily
manufactured or was in a position habitually to
manufacture such. [Celestino Co & Co vs.
Collector (1956)]
When each product or system executed is
always UNIQUE and could not mass-produce
the product because of its very nature, such is a
contract for a piece of work. [Commissioner vs.
Engineering Equipment and Supply Co. (1975)]
SALES
PAGE 210
DACION EN PAGO
Sale
No pre-existing debt
Creates an obligation
Price is more freely
agreed upon, fixed by
the parties
Buyer has to pay the
price
CIVIL LAW
Dacion en pago
Pre-existing debt
Extinguishes
the
obligation (mode of
payment)
Price is value of the
thing given
Payment is received
by the debtor before
contract is perfected
A subsequent buyer is
presumed to be a
buyer in good faith
Contract to sell
UP LAW BOC
Sale
Agency to sell
Lease
of
Parties to a Contract of
Sale
CAPACITY OF PARTIES
Art. 1489, CC. All persons who have capacity to
enter into obligations may enter into a contract
of sale.
KINDS OF INCAPACITY
SALES
PAGE 211
CIVIL LAW
ABSOLUTE INCAPACITY
(MIND-CI) [Art. 1327, CC]
(1) Minors
(2) Insane or Demented
(3) Deaf-mutes who do not know how to write
(4)Civil Interdiction
(5) Judicially-declared Incompetents (Art. 39)
(a) Prodigals
(b) Imbeciles
(c) Absence & presumption of death
(d) Persons not of unsound mind but by
reason of age, disease, weak mind, and other
similar causes, cannot take care of
themselves and manage their property
without outside aid (Easy prey for deceit and
exploitation)
RELATIVE INCAPACITY: MARRIED PERSONS
(1) Husband and Wife[Art. 1490, CC]
General Rule: Cannot sell property to each
other
Exceptions:
(1) Separation of property in marriage
settlement, OR
(2) Judicial separation of property.
Although certain transfers from husband to wife
or vice versa are prohibited, such prohibition can
be taken advantage of only to persons who bear
such relation to parties making transfer with
their rights or interest. Unless such a
relationship appears, the transfer cannot be
attacked. [Cook v. McMicking (1914)]
Sale by husband in favor of a concubine after he
had abandoned his family and left conjugal
home where his wife and children lived and
from whence they derived their support, is void.
[Ching v. Goyanko, Jr. (2006)]
Similarly, donations are prohibited. This is so
because if such transfers areallowed during
marriage, then the same would destroy the
system of conjugal partnership, a basic policy in
civil law.
(2) Alienage [Art. 39,CC]
GeneralRule: Aliens are disqualified from
purchasing or acquiring real property.
Exception: If acquisition is through hereditary
succession
(3) Trusteeship[Art. 39, CC]
UP LAW BOC
SPECIAL DISQUALIFICATIONS
SPECIFICINCAPACITY/ SPECIAL DISQUALIFICATIONS
(AGE-PLJ) [Art. 1491, CC]
The sale entered into by agents, guardians, and
executors and adminsitrators shall be voidable
because it affects only private interests.
The sale entered into by public officers, lawyers,
justices and judges, and others specially
disqualified by lawshallbe void because it
affects the public interest.
(1) Agents
Cannot purchase or acquire property whose
administration or sale was entrusted to them
Exception: Principal gives consent.
(2) Guardian
Cannot purchase property of person under
his guardianship
Rationale: Guardianship is a trust of the
highest order, and the trustee cannot be
allowed to have any inducement or neglect
his wards interest. [Phil Trust Co v Roldan,
1956]
Art. 1491(2) in relation to Art. 1409 does not
apply where the sale was under a special power
attached to the real estate mortgage, pursuant
law. Under Act No. 3135, a mortgagee-creditor
is allowed, as an exception, to participate in the
bidding under the same condition as any other
bidder. [Fiestan v. CA (1990)]
(3) Executors and Administrators
Cannot acquire or purchase property of
estate under their administration
The prohibition on executors and administrators
does not apply if the principal consents to the
sale. [Distajo v. CA (2000)]
(4) Public Officers and Employees
Cannot acquire or purchase property of
State/any of its subdivisions, GOCC or
administration, the administration of which
was entrusted to them.
SALES
PAGE 212
CIVIL LAW
UP LAW BOC
EFFECTS OF INCAPACITY
(1) Absolute Incapacity
(a)If both parties are incapacitated:
UNENFORCABLE [Art. 1403 (3)]
(b) If only 1 party is incapacitated: VOIDABLE
(c)If necessaries are sold and delivered to an
incapacitated person: pay a reasonable
price therefor. [Art 1489, CC]
Necessaries
those
which
are
indispensable for sustenance, dwelling,
clothing, medical attendance, education and
transportation. [Art 194, Family Code]
(2) Relative Incapacity
Sale between spouses is VOID.
Rationale:
(1) To protect 3rd persons who may have
contracted with the spouse
SALES
PAGE 213
CIVIL LAW
VALID
Those
entered
into
by
public
officers/employees, justices and judges, and
lawyers in violation of Art. 1491 are inexistent
and void from the beginning. [Rubias v
Batiller, 1973].
Subject Matter
REQUISITES OF
SUBJECT MATTER
FOR RIGHTS:
FOR THINGS:
(1) Licit
(2) Existing, Future, Contingent
(3) Determinate or determinable
UP LAW BOC
SALES
PAGE 214
CIVIL LAW
UP LAW BOC
SALES
PAGE 215
CIVIL LAW
UP LAW BOC
SALES
PAGE 216
CIVIL LAW
Price
MEANING OF PRICE
(Ce-MoRe)
(1) Certain or ascertainable at the time of
perfection
(2) In Money or its equivalent
(a)Example of equivalent: Letters of credit
(b) If price is partly in money and partly in
another thing: Determine manifest
intention of the parties to see whether it
was barter or sale. [Art 1468,CC]
(c)If intention does not clearly appear, it shall
be considered a barter if the value of the
thing exceed the amount of money or its
equivalent. [Art 1468,CC]
(3) Real
When buyer has an intention to pay and the
seller has an expectation to receive the price
(a) If simulated: Sale is VOID; BUT act may
be shown to have been a donation or
some other act or contract. [Art 1471, CC]
(b) An admission of non-payment of any
centavo in exchange of a property in a
UP LAW BOC
INADEQUACY OF PRICE
General Rule: Does not affect a contract of
sales validity. [Art. 1470, CC]
The stipulation in a contract of sale which states
that the consideration is P1 and other valuable
considerations does not make the contract
void. Gross inadequacy of price does not affect
the contract of sale except that it may indicate a
defect in consent. [Bagnas v. C.A., 1989]
SALES
PAGE 217
CIVIL LAW
Exceptions:
(1) In Voluntary sales
(a) Where low price indicates a vice of
consent, sale may be annulled.
(b) Where price is so low to be shocking to
the conscience, then sale may be set aside.
(c) Where price is simulated such as when
the real intention was a donation or some
other contract.
(d) Where the parties did not intend to be
bound at all, sale is void.
(2) In Involunatry sales
(a) Where price is so low to be shocking to
the conscience, then judicial sale will be set
aside.
(b) If in event of a resale, a better price can
be obtained.
(3) Rescissible contracts of sale
Inadequacy of price is a ground for
rescission of conventional sale under Art
1381 (a-b)
UP LAW BOC
VS.OPTION
MONEY
EARNEST
MONEY
Earnest Money Definition: paid in advance of the
purchase price agreed upon by the parties in a
contract of sale, given by the buyer to the seller,
to bind the latter to the bargain. [Asked in 93,
02]
Earnest Money
Part of purchase price
[Art 1482, CC]
SALES
PAGE 218
CIVIL LAW
Formation of Contract of
Sale
PREPARATORY
(1) OFFER
IN GENERAL:
(a) The contract of sale is perfected at the
moment there is meeting of the minds
upon the thing which is the object of the
contract and upon the price. [Art. 1475,
par.1, CC]
(b) From that moment, the parties may
reciprocally
demand
performance,
subject to the provisions of law
governing the form of contracts. [Art.
1475, par. 2, CC]
(c) A private instrument signed by the
defendant reciting that he bought from
the plaintiff a property at a specific
address for a specific price to be paid as
soon as a bill of sale is signed is not a
mere draft but a perfected agreement
and hence, obligatory, even if there was
no statement as to area or price per
meter. [Goyena v. Tambunting, 1902]
General Rule: Offer may be withdrawn at any
time without even communicating such
withdrawal to the interested buyer.
Exception: When the offerer has allowed the
offeree a certain period to accept, the offer may
be withdrawn at any time before acceptance by
communicating such withdrawal. [Art 1324, CC]
Exception to the exception: Cannot be
withdrawn within a certain period if offer is
founded upon a consideration. [Art 1324 and
1479, CC]
FORM AND TYPE
(a) Offer must be certain as to the object and
price [Art. 1319, CC]
(b) Business advertisements of things for sale
are not offers but mere invitations to make
an offer
Exception: If otherwise provided [Art. 1325,
CC]
UP LAW BOC
(2) ACCEPTANCE
(a) The acceptance must be absolute.
(b)The acceptance must be plain and
unconditional.
(c)To bind the offeror, the offeree must
comply with the conditions of the offer.
Where the acceptance was not in
accordance with the terms and
conditions of the offer, the offer lapsed
even though the offeree later on was
willing to accept the terms and
conditions of the offer.
The acceptance referred to which determines
consent is the acceptance of the offer, and not
of the goods delivered. [National Grains
Authority v. IAC (1989)]
For price, fixing cannot be left to only one party,
but price fixed by one and accepted, leads to a
perfected sale. For consent, offer without
acceptance means there is no contract. The
decision to accept proposal must be
communicated to the bidder. But a binding
contract may exist between parties whose
minds are set, although there are no signatures
anywhere, as acceptance may be expressed ir
implied, recognizing existence of contract of
sale.[Robern Development Corporation v.
Peoples Landless Association (2013)]
Receipt of installment payments is not proof of
acceptance. Except where formal acceptance is
so required, although the acceptance must be
affirmatively and clearly made and must be
SALES
PAGE 219
CIVIL LAW
UP LAW BOC
Sale
Option Contract
Unilateral: gives a right
to buy or to sell, but
imposes no obligation
on the part of the
option-holder,
aside
from the consideration
for the offer
Sale of right to
purchase
Bilateral
Sale of property
SALES
PAGE 220
CIVIL LAW
PERFECTION
WHEN PERFECTED
(1) Contract of sale is a consensual contract,
hence perfected at the moment of the
meeting of the minds of the parties as to the
object of the contract and the price. [Art
1475,CC]
(2) It is the proof of all the essential elements of
the contract of sale, and not the mere giving
of earnest money, which establishes the
existence of a perfected sale. [Platinum
Plans Phils. vs. Cucueco, 2006]
EFFECT OF PERFECTION
From the moment of the perfection of the
contract of sale, the parties may reciprocally
demand performance, subject to the provisions
of the Statute of Frauds. [Art 1475, CC]
UP LAW BOC
CONSUMMATION
When parties fulfill their obligations.
SALES
PAGE 221
CIVIL LAW
UP LAW BOC
Transfer of Ownership
OBLIGATIONS OF THE VENDOR:
(a) To transfer ownership of the thing
(b) To deliver the thing, with its accessions and
accessories, if any
(c) To warrant against eviction and against
hidden defects
(d) To take care of the thing, pending delivery,
with proper diligence
(e) To pay for the expenses of the deed of sale
MANNER OF TRANSFER
General Rule: ownership of the thing sold shall
be transferred to the vendee upon actual or
constructive delivery thereof [Art 1477]
Obligation to transfer ownership and to deliver
is implied in every contract of sale [Arts. 14581459]
Transfer of ownership requires delivery [Art.
1495]
Exceptions (elaborated later)
(1) Contrary stipulation
(2) Contract to sell
(3) Contract of insurance
(4)Sale on acceptance/Trial
(5) When seller is not the owner or has voidable
title
SALES
PAGE 222
GENERAL CONCEPTS
CIVIL LAW
CONCEPT OF DELIVERY
REQUISITES
(1) Identity must be delivered
(2)Integrity in a consition suitable for
enjoyment
(3) Intentional
WHAT TO DELIVER
(1) Thing sold [Art. 1495]
(2) Fruits [Art. 1164 & 1537]
(3) Accessions and accessories [Art. 1166 & 1537]
(a) Improvements by seller at his expense
grants him a usufructuary right.
(b) No indemnification
(c) But he may remove it to the extent that
there is no damage [Art. 1538]
WHERE TO DELIVER
(1) A hierarchy is followed:(STOR)
(a) Stipulation
(b) Usage of trade
(c) Sellers place of business (office)
(d) Sellers residence
(2) In case of specific goods, which the parties
knew to be at some other place when the
contract was perfected, that place is the place
of delivery
UP LAW BOC
SALES
PAGE 223
CIVIL LAW
Subject
to
a
resolutory condition
Risk of loss remains
with the buyer
UP LAW BOC
SALES
PAGE 224
KINDS OF DELIVERY
CIVIL LAW
UP LAW BOC
SALES
PAGE 225
CIVIL LAW
Exceptions
(i) Seller reserved title by the form of the
bill of lading, with intent to remain the
owner, not merely for the purpose of
securing payment, OR
(ii) Contrary intention appears in the
contract (i.e. seller is required to
deliver goods to buyer at the point of
destination)
(iii) F.O.B. (Free on Board or Freight on
Board):When seller bears the expenses
of transportation up to the F.O.B.
point.
(iv) C.I.F. (Cost, Insurance, Freight):Price
quoted includes the costs of the goods,
insurance, and freight charges on the
goods up to the point of destination.
(v) F.A.S. (Free Alongside):Seller bears the
expenses of transportation until he
delivers the goods alongside a vessel
at a named port.
DOUBLE SALES
General Rule: Prior tempore, potior jure (he who
is first in time is preferred in right) applies.
Requisites [Cheng v Genato, 1998]:
(1) 2 or more valid sales;
(2) Same subject matter;
(3) 2 or more buyers with conflicting interests at
odds over the rightful ownership of the
thing sold;
(4) Same seller
RULES
GOVERNING
SALE
OF
MOVABLES,
IMMOVABLES
AND
UNREGISTERED LANDS
(1) Sale of Movables
Ownership shall be transferred to the person
who may have first taken possession in good
faith.
(2) Immovables
(a) Ownership belongs to the person who:
(i) In good faith first recorded it in the
Registry of Property; OR
(ii) If there is no inscription, ownership
passes to the person who in good
faith was first in possession; OR
UP LAW BOC
of
SALES
PAGE 226
CIVIL LAW
UP LAW BOC
Annotation of Adverse
Claim
May be cancelled only
in one instance, i.e.,
after the claim is
adjudged invalid or
unmeritorious by the
Court
SALES
PAGE 227
Risk of Loss
GENERAL RULE
CIVIL LAW
AFTER DELIVERY
Buyer bears risk of loss
WHEN OWNERSHIP IS
TRANSFERRED
WHEN OWNERSHIP IS TRANSFERRED TO THE
BUYER, THE GOODS ARE AT THE BUYERS
RISK
(1) Where delivery of the goods has been made
to the buyer or to a bailee for the buyer, in
pursuance of the contract and the ownership
in the goods has been retained by the seller
UP LAW BOC
DETERIORATION
Impairment is borne by the buyer if the thing
deteriorates without the fault of the seller [Art
1189 (3)]
If it deteriorates through the fault of the debtor,
the creditor may choose between rescission of
obligation and fulfillment, either case with
indemnity for damages.
Documents of Title
DEFINITION
A document used in the ordinary course of
business in the sale or transfer of goods, as
proof of the possession or control of the goods,
or authorizing or purporting to authorize the
possessor of the document to transfer or
receive, either by endorsement or by delivery,
goods represented by such document. [Art.
1636]
Examples: bill of lading, quedan, warehouse
receipts, trust receipts, dock warrant
PURPOSE OF DOCUMENTS OF
TITLE
(1) As evidence of possession or control of goods
described therein
(2)As a medium of transferring title and
possession over the goods described therein
without having to effect actual delivery
thereof [Villanueva]
The custody of a negotiable warehouse receipts
issued to the order of the owner, or to bearer, is
a representation of title upon which bona fide
purchasers for value are entitled to rely, despite
breaches of trust or violations of agreement on
the part of the apparent owner. [Siy Cong Bieng
vs. HSBC, 56 Phil 598]
SALES
PAGE 228
NEGOTIABLEDOCUMENTS
TITLE
CIVIL LAW
OF
Endorsed in blank by
the person to whose
order the goods were
supposed
to
be
delivered
Goods are deliverable By indorsement of
to the order of a such person [Art.
specified person
1509, CC]
WHO MAY NEGOTIATE IT? [ART.1512, CC]
(1) Owner
(2) Person to whom the possession or custody of
the document has beenentrusted by the
owner
(a) If bailee undertakes to deliver the goods
to such person
(b) If document is in such form that it may be
negotiated by delivery
A PERSON TO WHOM A DOCUMENT HAS BEEN
NEGOTIATED ACQUIRES
(1) Title of person negotiating the document,
over goods coverd by document
(2) Title of depositor/owner over such goods
(3) Direct obligation of bailee/carrier to hold
possession of goods for him
NON-NEGOTIABLE
DOCUMENTS OF TITLE
UP LAW BOC
Transferee does
not acquire a
better title than
his transferor
WARRANTIES OF SELLER OF
DOCUMENTS OF TITLE
A PERSON WHO NEGOTIATES A DOCUMENT
OF TITLE WARRANTS
(1) Genuineness of document
(2) Legal right to negotiate or transfer
(3) No knowledge of fact which would impair the
validity or worth of the document
(4) Right to transfer the title to the goods and
merchantability or fitness for a particular
purpose, whenever such warranties would
have been implied
SALES
PAGE 229
CIVIL LAW
RULES ON
LEVY/GARNISHMENT OF
GOODS
Goods in the hands of the carrier covered by a
negotiable document cannot be attached or
levied upon, UNLESS
(1) Document is first surrendered to the carrier;
or
(2) Impounded by the court; or
(3)Its negotiation is enjoined. [Art. 1519-1520,CC]
The levy of an attachment of execution upon the
goods by a creditor of the transferor may defeat
the title of the transferee and the right to
acquire the obligation of such bailee when:
(1) It was done prior to the notification to such
bailee by the transferor of a non-negotiable
document of title or
(2) By a notification to such bailee by the
transferor or a subsequent purchaser from
the transferor of a subsequent sale of the
goods by the transferor. [Art 1514 (3rd par)]
A creditor whose debtor is the owner of a
negotiable document of title shall be entitled to
such aid from courts in regard to property which
cannot be readily attached or levied by ordinary
legal process [Art 1520]
UP LAW BOC
Remedies of an Unpaid
Seller
DEFINITION OF UNPAID SELLER
A seller is considered to be an unpaid seller if
the whole price has not been paid or tendered,
or when check received as a conditional
payment was dishonored by non-payment or
insolvency of the buyer [Baviera]
An seller is unpaid within such definition
whether or not title has been passed. Partial
payment of the price does not extinguish the
unpaid sellers lien. [De Leon]
Term also includes:
(1) The agent of the seller to whom the bill of
lading was endorsed,
(2) The consignor or agent who had paid the
price or is responsible for the price
(3) Any other person who is in the position of a
seller (i.e. buyer who paid the price and had
a right to return the goods). [Baviera]
SALES
PAGE 230
CIVIL LAW
UP LAW BOC
SALES
PAGE 231
CIVIL LAW
UP LAW BOC
Performance of Contract
DELIVERY OF THING SOLD
(1) SALE OF MOVABLES [Arts. 1522, 1537, 1480]
(a) When Quantity less than expected
(i) Buyer may reject all
(ii) Buyer accepts with knowledge of
sellers inability to deliver the rest
buyer pays at contract price
(iii) Buyer has used or disposed prior to
knowing sellers inability to deliver the
rest buyer pays fair value
(b) Quantity more than expected
(i) If divisible, buyer may reject excess
(ii) If indivisible, buyer may reject all
If the buyer accepts all goods delivered, he
makes himself liable for the price of all of them.
(c) Quality different or different goods
(i) If divisible, buyer may accept the goods
compliant with contract and reject
those that are not
(ii) If indivisible, buyer may reject all [Art.
1522]
(d) Sale of specific mass of goods
(i) In the sale of fungibles where the
measure or weight has not been
agreed upon nor is there a fixed rate
based upon a measurement, the
subject matter of the sale is a
determinate object the specific mass;
seller is merely required to deliver such
mass even if actual quantity falls short
of parties estimate [Art. 1480]
(e) Delivery by installments
(i) By default, buyer is not bound to accept
delivery of goods by installments
(ii) In a contract of delivery by installment
to be paid by installment as well, delay
or breach may not necessarily mean
breach of the entire contract;
depending on the circumstances, breach
may be severable and the aggrieved
party is entitled to damages and not
rescission. [Art. 1583]
(2) SALE OF IMMOVABLES [Arts. 1539, 1543]
(a) Sale at a fixed rate per unit of measure
SALES
PAGE 232
CIVIL LAW
UP LAW BOC
SALES
PAGE 233
PAYMENT OF PRICE
CIVIL LAW
UP LAW BOC
SALES
PAGE 234
Warranties
CIVIL LAW
EXPRESS WARRANTIES
For there to be express warranty, the following
requisites must concur: (APIR)
(1) An affirmation of fact or any promise relating
to the thing sold;
(2) The natural tendency of such affirmation or
promise is to induce the buyer to buy;
(3) The buyer buys the thing relying thereon.
[Art. 1546]
UP LAW BOC
Dealers or Traders
Talk
(a) Affirmation of the
value of the thing or
statement of the
sellers opinion only is
not a warranty unless:
i. The seller made
it as an expert;
ii. It was relied
upon by the buyer.
[Art.1546]
(b) Ordinarily, what
does not appear on
the face of the written
instrument [Moles v.
IAC, 1989]
Express Warranty
False Representation
Concealment of facts When concealment of
does not necessarily facts comes with an
amount
to
false active misstatement of
representation
fact or a partial
statement of fact such
that withholding of
that unsaid portion
makes that which is
stated absolutely false
However, buyer who
fails
to
inspect
condition of property
despite
ample
opportunity to do so
when there is no
opposition on the part
of seller to inspect
cannot later on allege
false
representation.
[Phil Mftg Co. v Go
Jucco, 1926]
SALES
PAGE 235
Express Warranty
CIVIL LAW
False Representation
Reason: buyers duty
to inspect remains
despite
false
representation by the
seller; he has the duty
to
exercise
due
diligence.
IMPLIED WARRANTIES
An implied warranty is derived by law by
implication or inference from the nature of the
transaction
or
relative
situation,
or
circumstances of the parties, irrespective of any
intention of the seller to create it.[De Leon]
(TODS)
(1) Implied Warranty of Title
(2)Implied Warranty against Encumbrance/
Non-Apparent Servitudes
(3) Implied Warranty against Hidden Defects
[Art. 1547]
(a) Implied warranty as to Merchantable
Quality and Fitness of Goods
(b) Implied warranty against Redhibitory
Defect in the Sale of Animals [Art. 1572]
(c) Quality and Fitness of Goods in Sale by
Sample or Description
(4) Other Warranties
IMPLIED WARRANTY OF TITLE
(1) Implied warranty arises by operation of law
and need not be stipulated in the contract of
sale.
(2) Warranty of Sellers Right to Sell: Seller
warrants his right to sell at the time the
ownership is to pass.
(a) Inapplicable to a sheriff, auctioneer,
mortgagee, pledgee, or other person
professing to sell by virtue of authority
in fact or law. [Art. 1547]
(3) Warranty against Eviction: seller warrants
that buyer, from the time ownership passes,
shall have and enjoy legal and peaceful
possession of the thing. Its requisites are:
(a) Buyer is deprived of the whole or a part of
the thing sold;
(b) Eviction is by final judgment
(c) Final judgment based on a right prior to
the sale or an act imputable to the vendor
UP LAW BOC
(d) Seller is summoned and made codefendant in the suit for eviction at the
instance of the buyer. [Power Commercial
and Industrial Corp. v. CA, 1997]
IMPLIED WARRANTY AGAINST
ENCUMBRANCE/ NON-APPARENT
SERVITUDES
Requisites for breach:
(1) Thing sold is an immovable
(2) Burden or servitude encumbering the thing
sold is:
(a) Non-apparent to the naked eye
(b) Not mentioned in the agreement
(c) Of such nature that it must be presumed
that the buyer would not have bought it
had he been aware of it
(d) Not recorded in the Registry of Property
unless there is an express warranty that
the thing is free from all burdens and
encumbrances [Art.1560]
IMPLIED WARRANTY AGAINST HIDDEN
DEFECTS
Requisites for breach:
(1) The defect renders the thing sold unfit for the
use for which it was intended OR diminishes
its fitness for such use to such an extent that
had the buyer been aware thereof, he would
not have bought it or would have paid a
lower price;
(2) The defect is not patent or visible;
(3) The buyer is not an expert who, by reason of
his trade or profession, should have known
the defect
(4) The seller is aware of the hidden fault or
defect, OR even if he is not aware thereof, if
there is no stipulation to the contrary
[Arts.1561 &1566]
SALES
PAGE 236
CIVIL LAW
MERCHANTABLE QUALITY:
(1) Where the goods are brought by description
from a seller who deals in goods of that
description [Art.1562]
(2) In a sale by sample, if the seller is a dealer in
goods of that kind and the defect is not
apparent on reasonable examination of the
sample [Art.1566]
In a sale by sample, there is implied warranty
that goods are free from defects not apparent
on reasonable examination of sample and
which render goods unmerchantable. [Mendoza
v. David (2004)]
FITNESS FOR A PARTICULAR PURPOSE:
Where the buyer expressly or impliedly makes
known to the seller the particular purpose for
which the goods are acquired AND it appears
that the buyer relied on the sellers skill or
judgment [Art.1562(1)]
IMPLIED WARRANTY AGAINST REDHIBITORY
DEFECT IN THE SALE OF ANIMALS (ART.
1572)
Redhibitory defect- a hidden defect of animals
of such nature that expert knowledge is not
sufficient to discover it, even in a case where a
professional inspection has been made
No warranty in case of [Art. 1574]:
(a) Animals sold at fairs or public auctions
(b) Livestock sold as condemned
The following sales are void [Art. 1575]:
(a) Sale of animals suffering from contagious
diseases
(b) Sale of animals unfit for the purpose for
which they are acquired as stated in the
contract
CIVIL LAW
SALES
UP LAW BOC
EFFECTS OF WAIVERS
EFFECTS OF WARRANTIES
EXPRESS WARRANTY
(1) Prescriptive period: Period specified in express
warranty OR 4 years, if no period is specified
(following the general rule on rescission of
contracts)
(2) Remedies:
(a) Accept goods + demand diminution/
extinction of price
(b) Accept goods + damages
(c) Refuse to accept goods + damages
(d) Rescind (Refuse to accept or return or
offer to return) + recover price paid
(3) Rescission not available when buyer:
(a) Knew of breach of warranty when he
accepted the goods without protest
(b) Fails to notify the seller about election to
rescind within a reasonable period of time
(c) Fails to return or offer to return the goods
to the seller in substantially a good
condition as they were when delivered,
unless deterioration was due to breach of
warranty
(4) Measure of damages: Difference between
value of goods at the time of delivery and
the value they would have had if they had
answered to the warranty
(5) Effects of rescission:
(a) Buyer no longer liable for price
i. Entitled to the return of any part of
price paid, concurrently with or
immediately after an offer to return
the goods
(b) If seller refuses to accept offer to return
goods: buyer deemed as bailee for seller
and has right of lien to secure payment
of part of price paid
PAGE 237
UP LAW BOC
Total Eviction
Partial Eviction
Enforce liability for Enforce
liability
eviction
(demandVICED)
OR
Demand from seller: Rescind
(VICED)
(a) If he would not
(a) Value of thing
have bought the
sold at time of
thing
sold
eviction
without the part
(b) Income or fruits, if
lost;
he has been (b) BUT he must
ordered to deliver
return the thing
them to the party
without
other
who won the
encumbrances
eviction suit
than those which
(c) Costs of eviction
it had when he
suit and in a
acquired it
proper case, suit
against seller for
warranty
(d) Expenses of the
contract, if buyer
has paid them
(e) Damages and
interests,
and
ornamental
expenses, IF sale
was made in bad
faith
(1) Rules:
(a) Buyer need not appeal from decision to
hold seller liable for eviction
(b) When adverse possession commenced
before sale, but prescription period
completed after transfer: seller is not
liable
(c) If property sold for nonpayment of taxes
due and not made known to the buyer
before the sale: seller liable
(d) Judgment debtor also responsible for
eviction in judicial sales, unless it is
otherwise decreed in the judgment
(2) If there is waiver of warranty:
(a) Seller acted in bad faith: Waiver is void,
seller liable for eviction
SALES
PAGE 238
CIVIL LAW
UP LAW BOC
Express Warranty
Implied Warranty
(1) Demand repair (1) Retain the goods
within 30 days
and
recover
(a) Extendible for
damages
causes beyond the
OR
control of the (2) Reject the goods,
warrantor
cancel
contract
(2) Demand refund of
and recover from
price
minus
seller so much of
amount directly
the purchase price
attributable to the
as has been paid +
use
of
the
damages
consumer prior to
the discovery of
the
nonconformity
SALES
PAGE 239
Breach of Contract
GENERAL REMEDIES
CIVIL LAW
UP LAW BOC
Vendee
becomes
SALES
PAGE 240
CIVIL LAW
UP LAW BOC
SALES
PAGE 241
CIVIL LAW
When available:
(1) Seller expressly reserved his right to
rescind in case buyer defaults
(2) Buyer has been in default in payment
for an unreasonable time
Transfer of title shall not be held to have
been rescinded by the unpaid seller until
he manifests by notice to the buyer or
some other overt act an intention to
rescind.
Election by seller to rescind may be maintained
by giving notice to the buyer or by some other
overt act showing intention to rescind.
Communication to buyer is not always
necessary. But giving/failure to give notice is
relevant in determining reasonableness of time
given to the buyer to make good his obligation
under contract. [De Leon]
(a) When the whole of the price has not been
paid or tendered;
(b) When a bill of exchange or other
negotiable instrument has been received
as conditional payment and the condition
on which it was received has been broken
by reason of the dishonor of the
instrument, the insolvency of the buyer, or
otherwise.
SALES
CIVIL LAW
UP LAW BOC
SALE OF IMMOVABLES
(a) PD 957, sec. 23, 24
Non-forfeiture of payments
(1) No installment payment made by the
buyer shall be forfeited in favor of the
owner or developer of the condominium
or subdivision project, after due notice,
when the buyer desists from paying due
to the failure of the developer or owner
to develop the project according to the
approved plans or within the time limit
stated.
(2) Buyers Remedy: At his option, he may
reimburse the total amount paid
including amortization interest with
interest thereon at the legal rate
(3) If the buyer fails to pay the installments
for reasons other than the failure of the
owner or developer to develop the
project, his rights shall be governed by
RA 6552.
PAGE 242
UP LAW BOC
SALES
PAGE 243
CIVIL LAW
UP LAW BOC
If thing deteriorates
Without fault of seller
Through fault of seller
NO
BREACH. Rescission + damages
Impairment shall be OR
borne by buyer
Specific performance
+ damages
(2) Remedy for breach of obligation to deliver
Delivery of wrong quantity [Art. 1522]
Goods are less than
More
what was contracted
Reject the goods
Reject the excess (Or
OR
the
whole,
if
Accept and pay
indivisible)
(a) At contract rate if OR
buyer
accepts Accept the whole and
knowing
that pay at contract rate
seller
wont
perform in full
(b) At fair value: If
goods were used
before
knowing
that seller wont
be able to perform
in full
Art. 1464. Civil Code. In the sale of an undivided
share of a specific mass of fungible goods, if the
mass contains less than the number, weight, or
measure bought, the buyer becomes the owner
of the whole mass and the seller is bound to
make good the deficiency from goods of the
same kind and quality, UNLESS a contrary
intent appears.
SALE OF IMMOVABLES
Real Estate [Arts. 1539-1543]
(a) If at the rate of a certain price per unit of
measure or number:
SALES
PAGE 244
CIVIL LAW
Proportional reduction
in price
OR
Rescission
UP LAW BOC
Extinguishment of Sale
CAUSES
Generally, extinguished by the same causes as
all other obligations [Arts.1600, 1231]
SALES
CIVIL LAW
(P-PLAN-C3-R3)
(1) Payment/performance
(2) Prescription
(3) Loss of thing due
(4) Annulment
(5) Novation
(6) Condonation/remission
(7) Confusion/merger
(8) Compensation
(9) Rescission
(10) Resolutory condition fulfilled
(11) Redemption (Conventional or Legal)
CONVENTIONAL REDEMPTION
HOW EXERCISED
(1) By returning the ff. to the buyer: (PEN)
(a) Price of the sale;
(b) Expenses of the contract and other
legitimate payments made by reason of the
sale;
(c) Necessary and useful expenses made on
the thing sold
(2) Complying with any other stipulation agreed
upon, if any.
BY WHOM EXERCISED
(1) Vendor
(2) His heirs, assigns or agents
(3) Creditor, if he has exhausted the property of
the vendor
PERIOD
General Rule: Follow period stipulated in
contract, but should not exceed 10 years.
(1) If no period stipulated, then it shall be four
years from the execution of the contract
(2) But vendor may still exercise the right to
repurchase within thirty days from the time
final judgment was rendered in a civil action
on the basis that the contract was a true sale
with right to repurchase
DEFINITION
(1) Vendor reserves the right to repurchase the
thing sold, with the obligation to comply with
the provisions of Article 1616 and other
stipulations which may have been agreed
upon. [Art 1601,CC]
(2) Available when the seller reserves the right
to repurchase the thing sold in the same
instrument of sale as one of the stipulations
of the contract [Villarica v CA, 1968]
PAGE 245
UP LAW BOC
EFFECT OF REDEMPTION
(1) The seller shall receive the thing free from all
charges or mortgages constituted by the
buyer BUT he shall respect leases executed
by the buyer in good faith and in accordance
with local custom.
(2) If there are growing fruits at the time of sale
and at the time of redemption: no
reimbursement or prorating if the buyer did
not pay indemnity at the time of sale
(3) If there were no growing fruits at the time of
sale, but some exist at the time of redemption:
fruits prorated (buyer entitled to part
corresponding to time he possessed the land
in the last year, counted from the anniversary
of the date of sale)
EFFECT OF NON-REDEMPTION
Ownership is consolidated in the buyer BUT the
consolidation shall not be recorded in the
Registry of property without a judicial order,
after the vendor has been duly heard.
Stipulation that installments paid shall not be
returned is valid insofar as the same may not be
unconscionable under Art. 1486. Since the
defendant admitted using the units, this means
they did not pay the monthly installments, using
units free to prejudice of petitioner. Under the
circumstances, the treatment of the installment
payments as rentals cannot be said to be
unconscionable. [Delta Motor Sales v. Niu Kim
Duan (1992)]
RIGHT TO REDEEM VS. OPTION TO PURCHASE
(VILLANUEVA)
Right to Redeem
Option to Purchase
Not
a
separate Generally a principal
contract but part of a contract and may be
main contract of sale, created independent
and
cannot
exist of another contract
unless reserved at the
time of the perfection
of the main contract of
sale
Does not need its Must
have
a
separate consideration consideration separate
to be valid and and distinct from the
effective
purchase price to be
valid and effective
[Arts. 1324 and 1479]
SALES
PAGE 246
Right to Redeem
The maximum period
for the exercise of the
right to repurchase
cannot exceed 10
years
Requires in addition a
tender of payment of
the amount required
by law, including
consignment thereof if
tender of payment
cannot
be
made
effectively on the
buyer
CIVIL LAW
Option to Purchase
The period of the
option contract may
be beyond the 10-year
period
May be exercised by
notice of its exercise to
the offeror
EQUITABLE MORTGAGE
UP LAW BOC
THE
PRESUMPTION
OF
AN
EQUITABLE
SALES
PAGE 247
CIVIL LAW
PERIOD OF REDEMPTION
Art. 1606. The right referred to in Article 1601, in
the absence of an express agreement, shall last
four years from the date of 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 from the time
final judgment was rendered in a civil action on
the basis that the contract was a true sale with
right to repurchase.
Period of Redemption
(1) No stipulation: 4 years from the date of
contract
(2) When there is agreement: Period not to
exceed 10 years
(3) General Rule: Period starts to run from the
date of the execution of the contract
(4) Exception: When the efficacy of the sale is
subject to a suspensive condition, period
should be counted not from the date
appearing on the instrument, but from the
date when the condition is fulfilled,
marking the consummation of the sale
[Tolentino citing Manresa].
Additional 30 days for Repurchase
The last paragraph of Art. 1606 giving the
vendor the right to repurchase within 30 days
from the time of the rendition of final judgment
applies only where the nature and the character
of the transaction, whether as a pacto de retro
or an equitable mortgage, was put in issue
CIVIL LAW
SALES
UP LAW BOC
PERIOD TO REDEEM
To whom granted
Period
(a) Co-owner
[Art 30 days from notice
1620]
(a) In writing
(b) By the seller
(b) Adjoining owner of (c) Of
the
actual
Rural Land [Art
execution
and
1621]
delivery of the deed
of sale
MANNER
(1) a formal offer to redeem or
(2) filing of an action in court together with the
consignation of the redemption price within
the reglementary period
DEFINITION
(1) Right to be subrogated:
(a) upon the same terms and conditions
stipulated in the contract,
(b) in the place of one who acquires a thing
by purchase or dation in payment, or by
any other transaction whereby ownership
is transmitted by onerous title [Art 1619,
CC]
(2) Applies to transfers of ownership by onerous
title where subrogation is possible. Hence, it
cannot apply to barter or to transfer by
gratuitous title or hereditary succession.
(3) Applies to sales with pacto de retro [Baviera
citing MANRESA]
LEGAL REDEMPTION
PAGE 248
UP LAW BOC
To whom granted
Period
Actual knowledge of
the sale is immaterial ,
absent any showing
that the co-owner has
been shown a copy of
the deed of sale
through a written
communication.
[Doromal v. CA, 1975]
The law did not
provide for a particular
mode
of
written
notice,
thus
any
compliance
with
written
notice
should
suffice,
including the giving of
a copy of the deed of
sale. [[Cronejero v. CA,
1966]]
30 days from the date
the assignee demands
payment from debtor
1 year from date of
forfeiture
1 year from the date of
registration of the
certificate of sale
SALES
PAGE 249
To whom granted
Debtor-mortgagor in
case
of
judicial
foreclosure of real
estate mortgage IF the
mortgagee is a bank
or
a
banking
institution. [The
General Banking Law
of 2000]
Agricultural
lessee
w/o knowledge of sale
of
landholding
[Agrarian Land
Reform Code, Sec.12]
CIVIL LAW
Period
90 days from finality
of judgment
UP LAW BOC
Priority if 2 or more
adjoining owners want
to redeem: owner
whose intended use of
the land appears to be
best justified
Right of Redemption
If the resale has been
perfected, the owner
of the adjoining land
shall have a right of
redemption, also at a
reasonable price
SALES
PAGE 250
CIVIL LAW
Right of Pre-emption
Right of Redemption
Arises before sale
Arises after sale
No rescission because There
can
be
no sale exists yet
rescission
of
the
original sale
The action is directed Action is directed
against
prospective against buyer
seller
(4) Redemption of Credit
Available when it is sold while in litigation
(From the time the complaint is answered)
NOT available when the assignment is in
favor of:
(a) Co-heir/co-owner of right assigned
(b) Creditor in payment of his credit
(c) Possessor of a tenement or piece of land
which is subject to the right assigned
How exercised: reimburse the assignee for
the:
(a) Price paid
(b) Judicial expenses incurred
(c) Interest on the price from date of payment
(5) Under the Public Land Act
Coverage:
(a) Every conveyance of land acquired under
a free patent or homestead
(b) The ownership of the land must have
been transferred to another. If the
transaction is a mere promise to sell,
there is no right yet to redeem
(c) This refers to conveyances made after the
prohibited 5 years from the issuance of
the patent or grant
Period:
(a) Within 5 years from the date of
conveyance
(b) If pacto de retro sale, the period to
redeem cannot be less than 5 years
Who may redeem:
(a) General Rule: Applicant, widow, or heirs
(b)Exception: land is sold to another member
of the family of the applicant, or his direct
descendant or heir
(c) From whom: Subsequent purchasers
UP LAW BOC
SALES
PAGE 251
CIVIL LAW
AGE REDEMPTION
Art. 1619. Legal redemption is the right to be
subrogated, upon the same terms and
conditions stipulated in the contract, in the
place of one who acquires a thing by purchase
or dation in payment, or by any other
transaction whereby ownership is transmitted
by onerous title.
UP LAW BOC
SALES
PAGE 252
CIVIL LAW
PUBLICATION
AND
ISSUANCE
OF
REGISTRATION CERTIFICATE [SECTION 4, PD
957]
UP LAW BOC
SALES
PAGE 253
CIVIL LAW
BROKERS,
UP LAW BOC
SALES
PAGE 254
CIVIL LAW
UP LAW BOC
SALES
PAGE 255
CIVIL LAW
OTHER DEFINITIONS
TRANSFERS OR CONVEYANCES OF A
UNIT OR AN APARTMENT, OFFICE
OR STORE, OR OTHER SPACE
THEREIN [SECTION 5, RA 4726]
UP LAW BOC
SALES
PAGE 256
CIVIL LAW
DECLARATION OF RESTRICTIONS BY
OWNER OF PROJECT PRECONDITION TO CONVEYANCE
[SECTION 9]
UP LAW BOC
ASSESSMENT IN ACCORDANCE
WITH DECLARATION OF
RESTRICTIONS [SECTION 20]
This is the "tax imposition power" of the
condominium corporation. If unpaid, the
management body may cause a notice of
assessment to be registered with the Register of
Deeds, which may be released only upon
payment of the assessed fees. This lien is
superior to all other subsequent liens except
real property taxes liens and other liens
provided for in the declaration of restrictions.
CONTENTS OF A DECLARATION OF
RESTRICTIONS [SECTION 9]
(1) Provisions for the management of the project
by any of the ff bodies:
(a) Condominium corporation
(b) Association of condominium owners
(c) Board of governors elected by
condominium owners
(d) Management agent elected by the
owners or by the board named in the
declaration
(2) Provisions for voting majorities quorums,
notices, meeting date, and other rules
governing such body or bodies
(3) Powers of the management body
(4) Maintenance of insurance policies (fire,
casualty, workmen's compensation, etc)
(5) Maintenance, utility, gardening and other
services for the common areas
(6) Amendment of the restrictions
(7) Reasonable
assessment
to meet
expenditures
(8) And many other provisions - the common
thread
is
the
management
and
maintenance of the common areas and the
manner of exercise of the management
body's powers
SALES
PAGE 257
CIVIL LAW
INVOLUNTARY DISSOLUTION OF
THE CONDOMINIUM CORPORATION
[SECTION 12]
In case of involuntary dissolution, the common
areas held by the corporation shall be
transferred pro-indiviso and in proportion to
their interest to the members/stockholders of
the corporation, subject to the rights of creditors
of the corporation. The common areas remain in
undivided co-ownership.
STOCKHOLDER/MEMBER
DEMANDING PAYMENT FOR SHARES
OR INTEREST AKA APPRAISAL
RIGHT [SECTION 17]
UP LAW BOC
REQUIREMENTS
FOR
REGISTRATION OF CONVEYANCE
WITH THE REGISTER OF DEEDS
[SECTION 18]
Certificate of the management body of the
project that the conveyance is in accordance
with the declaration of restrictions
SALES
PAGE 258
CIVIL LAW
PAGE 259
UP LAW BOC
General Provisions
DEFINITION
CIVIL LAW
KINDS OF SUCCESSORS
Heirs those who are called to the whole or an
aliquot portion of the inheritance either by will or
by operation of law. [Art. 782, CC]
SUBJECTS OF SUCCESSION
SUCCESSION
KINDS OF SUCCESSION
(1)
(2)
(3)
(4)
AND
OBJECT OF SUCCESSION
TRANSMISSION
Inheritance includes:
All the property, rights and obligations of a
person which are not extinguished by his
death. [Art. 776, CC]
Not only the property and the transmissible
rights and obligations existing at the time of
his death, but also those which have accrued
thereto since the opening of the succession.
[Art. 781, CC]
What are transmitted?
Rights and obligations which are not strictly
personal (intuit personae).
Money debts of the decedent are not
transmitted to the heirs nor paid by them. The
estate pays them. [Balane, 2010)
RULE ON TRANSMISSION
General rule: All property rights which have
accrued to the hereditary estate since the
opening of succession are transmitted to the
heirs.
PAGE 260
UP LAW BOC
CIVIL LAW
What cannot be
What may be
delegated to third
entrusted to third
persons
persons
(1) Designation
of
person/institutio
n falling under a
(1) Designation
of
class specified by
heirs,
devisees
testator;
and legatees;
(2) Manner
of
(2) Duration/efficacy
distribution
of
of designation;
property specified
(3) Determination of
by testator. [Art.
portions, when
786, CC]
referred to by
name. [Art. 785,
CC]
CHARACTERISTICS OF WILLS
(1) Purely personal will-making is nondelegable
Making of a will cannot be left in whole or
in part of the discretion of a third person, or
accomplished through the instrumentality
of an agent or attorney. [Art. 784, CC]
Testator may not make a testamentary
disposition in such manner that another
person has to determine whether or not it
is to be operative. [Art. 787, CC]
SUCCESSION
Testamentary Succession
WILLS
IN GENERAL
Will an act whereby a person is permitted, with
the formalities prescribed by law to control to a
certain degree the disposition of his estate to
take effect after his death. [Art. 783, CC]
KINDS OF WILLS
(1) Notarial an ordinary or attested will, which
must comply with the requirements of the
law. [Arts. 804-808, CC]
(2) Holographic a will entirely written, dated
and signed by the hand of the testator. [Art.
810, CC]
PAGE 261
UP LAW BOC
Intrinsic Validity
CAPACITY
CIVIL LAW
AND
Requisites:
He must not be expressly prohibited by law to
make a will [Art. 796, CC]
TESTAMENTARY
INTENT
Governing Law
Law in force at the time
the will was executed. [Art.
795, CC]
Law of decedents
nationality at the time of
his death. [Art. 16 and
2263, CC]
Patent or Extrinsic
Latent or Intrinsic
Ambiguity
Ambiguity
One which cannot be
seen from the reading
of the will but which
One which appears
appears only upon
upon the face of the
consideration
of
instrument.
extrinsic
circumstances.
Kinds of Ambiguities
SUCCESSION
AND
(3)
(4)
(5)
(6)
(7)
PAGE 262
UP LAW BOC
Place of
Execution of
Will
Philippines
Outside of
the
Philippines
Philippines
Outside of
the
Philippines
TO
CIVIL LAW
PLACE
Governing Law
OF
Alien
Filipino
Testator
GOVERNING LAW AS
EXECUTION OF WILL
SUCCESSION
FORM
IN GENERAL [Art. 804, CC]
(1) The will must be in writing.
(2) It must be in a language or dialect known to
the testator.
APPLICABLE LAWS AS TO FORMAL VALIDITY
Formal validity is governed by the law in force
at the time the will was executed. [Art. 795, CC]
As to the place, forms and solemnities of a will
are governed by the law of the country in which
the will was executed. [Art. 17, CC]
Arts. 815-817 (summarized in the table below)
provide for the various governing laws in these
instances:
(1) A will was made in a foreign country by a
Filipino [Art. 815, CC]
PAGE 263
UP LAW BOC
of
CIVIL LAW
Exceptions:
(1) When the will consists of only one page;
(2) When the will consists of only two pages, the
first of which contains all dispositions and is
signed at the bottom by the testator and the
witnesses, and the second page contains
only the attestation clause duly signed at the
bottom by the witnesses. [Abangan vs.
Abangan (1919)]
SUCCESSION
Purpose
identification
Subscription
Mechanical (act of the
hand)
PAGE 264
UP LAW BOC
Advantages
Simple and easy to
make.
Induces foreigners in
this jurisdiction to
set down their last
wishes.
Guarantees
the
absolute secrecy of
the
testamentary
dispositions.
CIVIL LAW
Disadvantages
No guarantee as to
the capacity of the
testator.
No
protection
against
violence,
intimidation or undue
influence.
May not faithfully
express the will of
the testator due to
faulty expressions.
Can be easily falsified
and concealed.
Requisites:
(1) In writing [Art. 804, CC];
(2) In a language known to the testator [Art.
804, CC];
(3) Entirely written, dated and signed in the
hand of the testator himself. [Art. 810, CC]
HOLOGRAPHIC WILLS
Examples:
(1) Whether all pages are consecutively
numbered;
(2) Whether the signatures appear in each and
every page;
(3) Whether the subscribing witnesses are
three;
(4) Whether the will was notarized. [Caneda v.
CA (1993)]
SUCCESSION
of
Exception
If there are three other
competent witnesses,
the device or legacy
shall be valid and the
interested
witness
shall be treated as a
mere surplusage
PAGE 265
UP LAW BOC
CIVIL LAW
INCORPORATION BY REFERENCE
CODICIL
(1) It is a supplement or addition to a will,
(2) Made after the execution of a will,
(3) And annexed to be taken as a part of the will,
(4) By which any disposition made in the original
will is explained, added to, or altered.
(5) In order that it may be effective, it shall be
executed as in the case of a will. [Arts. 825826, CC]
CODICILS
RECIPROCAL WILLS
(1) Testators name each other as beneficiaries in
their own wills,
(2) Under similar testamentary plans.
MUTUAL WILLS
(1) Executed pursuant to an agreement between
two or more persons,
(2) Jointly executed by them,
(3) Either for their reciprocal benefit or for the
benefit of a third person.
SUCCESSION
PAGE 266
UP LAW BOC
CIVIL LAW
SUCCESSION
REVOCATION
MODES OF REVOCATION [Art. 830, CC]
(1) By implication of law; or
(2) By the execution of a will, codicil or other
writing executed as provided in the case of
wills; or
(3) By burning, tearing, canceling, or obliterating
the will with the intention of revoking it, by
the testator himself, or by some other person
in his presence, and by his express direction.
The act contemplating revocation must be done
at any time before the death of the testator. The
right of revocation cannot be waived or
restricted. [Art. 828, CC]
LAW GOVERNING REVOCATION [Art. 829,
CC]
Place of
Testators
Governing Law
Revocation
Domicile
Philippines, or
Philippine some other Philippine Law
s
country
Philippines
Philippine Law
(1) Law of the
place where
the will was
made; or
(2) Law of the
place in which
the
testator
Outside
Foreign
had
his
the
Country
domicile at the
Philippine
time
of
s
revocation.
DEPENDENT RELATIVE
DOCTRINE OF
REVOCATION
PAGE 267
UP LAW BOC
CIVIL LAW
Revocation
Disallowance
Voluntary act of the Given
by
judicial
testator.
decree.
Must always be for a
With or without cause.
legal cause.
Always total, except
when the ground of
fraud or influence for
May be partial or total.
example affects only
certain portions of the
will.
Pastor v. CA (1983)
Probate court may pass upon the title to a
property, but such determination is provisional
and not conclusive, and is subject to the final
decision in a separate action to resolve title.
SUCCESSION
Republication
Revival
Takes place by an
Takes place by
act of the testator.
operation of law.
Corrects extrinsic
Restores a revoked
and
intrinsic
will.
defects.
PAGE 268
UP LAW BOC
INSTITUTION OF HEIRS
CIVIL LAW
MANNER OF DISTRIBUTION
SUCCESSION
MANNER OF INSTITUTION
RULES ON IDENTITY OF HEIRS [Arts. 843849, CC]
The heir must be designated with sufficient
clarity.
If an unknown person is instituted, the
disposition is void (UNLESS by some event, the
identity becomes certain).
If a definite class or group of persons is
instituted, institution is valid.
PAGE 269
UP LAW BOC
Preterition
Tacit deprivation of
a compulsory heir of
his legitime.
May be voluntary
but the presumption
of law is that it is
involuntary.
Law presumes there
has been merely
oversight or mistake
on the part of the
testator.
Since
preterition
annuls
the
institution of heirs,
the omitted heir
gets not only his
legitime but also his
share in the free
portion not disposed
of by way of legacies
and devises.
CIVIL LAW
Express deprivation
of a compulsory heir
of his legitime.
Always voluntary.
For some
legal
cause.
If the disinheritance
is
valid,
the
compulsory
heir
disinherited is totally
excluded from the
inheritance. In case
of
invalid
disinheritance, the
compulsory heir is
merely restored to
his legitime.
Disinheritance
SUCCESSION
(5)
PRETERITION
The preterition or omission of one, some, or all
of the compulsory heirs in the direct line,
whether living at the time of the execution of
the will or born after the death of the testator,
shall annul the institution of heir; but the
devises and legacies shall be valid insofar as
they are not inofficious.
If the omitted compulsory heirs should die
before the testator, the institution shall be
effectual, without prejudice to the right of
representation. [Art. 854, CC]
CONCEPT [Art. 854, CC]
(1) There must be a total omission of one, some
or all of the heir/s from the inheritance.
[Seangio v Reyes (2006)]
(2) The omission must be that of a compulsory
heir.
(3) The compulsory heir omitted must be of the
direct line.
(4) The omitted compulsory heir must be living
at the time of the testators death or must at
least have been conceived before the
testators death.
PAGE 270
UP LAW BOC
(1)
(2)
(3)
(4)
(5)
CIVIL LAW
FIDEICOMMISSARY SUBSTITUTION
The testator institutes an heir with an obligation
to preserve and to deliver to another the property
so inherited. The heir instituted to such condition
is called the First Heir or the Fiduciary Heir; the
one to receive the property is the
Fideicommissary or the Second Heir. [Art. 863,
CC]
SUCCESSION
SUBSTITUTION OF HEIRS
Substitution the appointment of another heir,
so that he may enter into the inheritance in
default of the heir originally instituted. [Art. 857,
CC]
Brief or Compendious
Reciprocal
Simple or Common
Fideicommissary
KINDS
(1)
(2)
(3)
(4)
BRIEF OR COMPENDIOUS [Art. 860, CC]
Brief Two or more persons were designated by
the testator to substitute for only one heir.
Compendious One person is designated to take
the place of two or more heirs.
RECIPROCAL [Art. 861, CC]
If the heirs instituted in unequal shares should
be reciprocally substituted, the substitute shall
acquire the share of the heir who dies,
renounces, or is incapacitated, unless it clearly
appears that the intention of the testator was
otherwise. If there is more than one substitute,
they shall have the same share in the
substitution as the institution.
Example (only 1 substitute): If two heirs are
reciprocally substituted, then if one of them
dies before the testator dies, renounces, or
turns out to be incapacitated, the other will get
his share, regardless of whether or not their
shares are equal.
Example (more than 1 substitute): A is
instituted to 1/3, B to 1/6, and C to . If C dies
PAGE 271
UP LAW BOC
Scriptura
Captatoria/
CASUAL
CIVIL LAW
Legacy-hunting
MIXED
Constructive Compliance:
If casual not applicable.
If mixed applicable only if dependent partly
on the will of a third party not interested.
Casual or mixed
General rule: May be fulfilled at any time (before
or after testators death), unless testator provides
otherwise.
Potestative conditions
General rule: Must be fulfilled as soon as the heir
learns of the testators death.
AND
Dispositions
SUCCESSION
TESTAMENTARY
TESTAMENTARY DISPOSITIONS
WITH A CONDITION, A TERM,
AND A MODE
3
KINDS
OF
DISPOSITIONS
(1) Conditional (obliquely defined in Article 1179,
par. 1)
(2) Dispositions with a term (obliquely defined in
Article 1193, pars. 1 and 3)
(3) Dispositions with a mode/modal dispositions
(obliquely defined in Article 882)
CONDITIONAL DISPOSITIONS
Basis of testators right to impose conditions,
terms or modes: Testamentary freedom
PROHIBITED CONDITIONS: (CONSIDERED AS
NOT IMPOSED)
(1) Any charge, condition or substitution
whatsoever upon the legitimes. [Art. 872)
(2) Impossible and illegal conditions. [Art. 873)
(3) Absolute condition not to contract a first
marriage. [Art. 874)
(4) Absolute condition not to contract a
subsequent marriage unless imposed on the
widow or widower by the deceased spouse,
or by the latters ascendants or descendants.
[Art. 874)
(5) Scriptura captatoria or legacy-hunting
dispositions [Art. 875)
PAGE 272
UP LAW BOC
CIVIL LAW
(1) LC
and
descendants;
(2) ILC
and
descendants;
(3) In default of Nos.
12, ILP only;
(4) SS.
If the testator is an
ILLEGITIMATE CHILD:
LEGITIME
SUCCESSION
MODAL DISPOSITIONS
Dispositions with an obligation imposed upon
the heir, without suspending the effectivity of
the institution, as a condition does.
Must be clearly imposed as an obligation in
order to be considered as one.
Mere
preferences or wishes expressed by the testator
are not modes.
A mode functions similarly to a resolutory
condition.
Rabadilla v. CA (2000)
In modal institutions, the testator states (1) the
object of the institution, (2) the purpose or
application of the property left by the testator, or
(3) the charge imposed by the testator upon the
heir.
CAUCIN MUCIANA
A security to guarantee the return of the value of
property, fruits, and interests, in case of
contravention of condition, term or mode.
Instances when it is needed:
(1) Suspensive term [Art. 885)
(2) Negative potestative condition when the
condition imposed upon the heir is negative,
or consists in not doing or not giving
something. [Art. 879)
(3) Mode [Art. 882, par. 2, CC]
If the testator is a
LEGITIMATE CHILD:
(1) LC
and
descendants;
(2) In default of No. 1,
LP
and
ascendants;
(3) SS;
(4) IC
and
descendants.
PAGE 273
UP LAW BOC
CIVIL LAW
SUCCESSION
PAGE 274
UP LAW BOC
Legend:
LC Legitimate Children
SS Surviving Spouse
LP Legitimate Parents
ILP Illegitimate Parents
SUCCESSION
SS
Same portion as 1
LC
1/4
LP alone
1/2
in
portions
1/2
1/4
ILC
LC alone
1/2
LC & Descendants
1
1 LC, SS
Surviving Relatives
2
LC, SS
equal
equal
3
LC, ILC
7
LP, ILC
1/4
1/2
in
portions
1/2
in
portions
8
LP, SS
1/8
1/4 (preferred)
9
LP, SS, ILC
1/4
1/3
1/2
Same as share of 1
LC
10
ILC alone
ILC, SS
equal
11
12
SS alone
ILP alone
ILP, SS
13
14
15
PAGE 275
LP &
Ascendants
1/2
1/2
1/2
1/2
ILP
CIVIL LAW
1/2
1/4
UP COLLEGE OF LAW
Parties: [Balane]
(1) Origin or Mediate Source either an
ascendant of any degree of ascent or a
brother or sister of the Prepositus;
responsible for the 1st transfer.
(2) Prepositus the first transferee of the
reserved property.
(3) Reservista an ascendant of the Prepositus
other than the Origin or Mediate Source; the
one obligated to reserve the property.
(4) Reservatarios within the 3rd degree of
consanguinity from the Prepositus [Cabardo
RESERVA TRONCAL
SUCCESSION
PAGE 276
UP COLLEGE OF LAW
VALID
(1) Heir disinherited must be designated by
name or in such a manner as to leave no
room for doubt as to who is intended to be
disinherited.
(2) It must be for a cause designated by law.
REQUISITES
OF
DISINHERITANCE
DISINHERITANCE
Two Views
Reserva Maxima: The entire property will be
considered acquired as legitime and therefore
wholly reservable.
Reserva Minima: One half is reservable, the
other half is not subject to reserva troncal.
[Tolentino, p. 284]
SUCCESSION
PAGE 277
UP COLLEGE OF LAW
(1)
(2)
(3)
(4)
(5)
(6)
921, CC]
(8)
(7)
(6)
(5)
(4)
(3)
SUCCESSION
PAGE 278
SUCCESSION
CC 921
Spouse
CC 1032
Unworthiness
CC 920
Parents &
Ascendants
UP COLLEGE OF LAW
CC 919
Children &
Descendants
3
4
5
6
7
8
9
10
11
12
13
14
15
PAGE 279
UP COLLEGE OF LAW
MODES
OF
REVOCATION
DISINHERITANCE
(1)
(2)
(3)
(4)
Preterition
Person omitted must
be a compulsory heir
in the direct line
Annuls the entire
institution of heirs
Ineffective
Disinheritance
Person
disinherited
may be any compulsory
heir
Only
annuls
the
institution in so far as it
prejudices the person
disinherited
SUCCESSION
OF
918, CC]
INSTANCES
OF
INEFFECTIVE
DISINHERITANCE:
(1) There is no specification of the cause.
(2) The cause is not proved.
(3) The cause is not among those specified in
the provisions.
PAGE 280
UP COLLEGE OF LAW
SUCCESSION
PAGE 281
UP COLLEGE OF LAW
SUCCESSION
EFFECT
To a creditor
legacies
Legacy of support
Legacy of education
and
Alternative
devises
ORDER OF PAYMENT IN CASE THE ESTATE IS NOT SUFFICIENT TO COVER ALL THE LEGACIES
AND DEVISES
ART. 911
ART. 950
ORDER OF PREFERENCE
Remuneratory legacy/devise
Preferential legacy/devise
Legitime of compulsory heirs
Legacy for Support
Donations Inter vivos
Legacy for Education
Preferential legacies or devises
Legacy/devise of Specific, determinate thing which forms a part
All Other legacies or devises pro rata
of the estate
All Others pro rata
APPLICATION
When the reduction is necessary to preserve the legitime of
compulsory heirs from impairment whether there are donations
inter vivos or not; or
When, although, the legitime has been preserved by the testator
himself there are donations inter vivos.
Art. 911, CC governs when there is a conflict between compulsory
heirs and the devisees and legatees.
PAGE 282
UP LAW BOC
CIVIL LAW
GENERAL PROVISIONS
Legal or Intestate
Succession
SUCCESSION
951, CC]
(1) The very thing bequeathed shall be
delivered and not its value,
(2) With all its accessions and accessories,
(3) In the condition in which it may be upon the
death of the testator.
(4) Legacies of money must be paid in cash.
(3)
(4)
PAGE 283
UP LAW BOC
CIVIL LAW
RELATIONSHIP
The number of generations determines the
proximity of the relationship. Each generation
forms one degree. [Art. 963, CC]
Note:
If one of the legitimate ascendants,
illegitimate parents, legitimate children or
illegitimate children survives, the brother,
sisters, nephews, and nieces (BSNN) are
excluded.
If one of the legitimate ascendants,
illegitimate parents, legitimate children,
illegitimate children or surviving spouse
survives, the other collateral relatives and the
state are excluded.
If any of the heirs concur in legitimes, then
they also concur in intestacy.
SUCCESSION
IN
FUNDAMENTAL
PRINCIPLES
INTESTATE SUCCESSION
RULE OF PREFERENCE BETWEEN LINES
Those in the direct descending line shall
exclude those in the direct ascending and
collateral lines;
Those in the direct ascending line shall, in
turn, exclude those in the collateral line.
RULE OF PROXIMITY
The relative nearest in degree excludes the
farther one. [Art. 962[1], CC], saving the right
of representation when it properly takes place.
RULE OF EQUAL DIVISION
The relatives who are in the same degree shall
inherit in equal shares. [Arts. 962[2], 987 and
1006, CC]
Exceptions: [Balane, 427-428]
(a) Rule of preference between lines.
(b) Distinction between legitimate and
illegitimate filiation. The ratio under
PAGE 284
UP LAW BOC
CIVIL LAW
When it occurs
Representation is allowed with respect to
inheritance conferred by law (legitime and
intestate based on Art. 923).
Effect of Representation
The representative heir acquires the rights
which the person represented would have if he
were living or if he could have inherited.
RIGHT OF REPRESENTATION
Representation right created by fiction of law,
by virtue of which the representative is raised to
the place and the degree of the person
represented, and acquires the rights which the
latter would have if he were living or if he could
have inherited [Art. 970, CC]
SUCCESSION
PAGE 285
UP LAW BOC
between legitimate
applicable.
and
if
CIVIL LAW
illegitimate,
Representation in Adoption
If the adopting parent should die before the
adopted child, the latter cannot represent the
former in the inheritance of the parents or
ascendants of the adopter. The adopted child is
not related to the deceased in that case,
because filiation created by fiction of law is
exclusively between the adopter and the
adopted. [Tolentino, 448-449]
SUCCESSION
PAGE 286
UP LAW BOC
SUCCESSION
CIVIL LAW
2
3
Surviving spouse (SS)
Illegitimate brothers and sisters,
nephews, nieces (IBS/NN)
State
State
4
Brothers and sisters,
nephews, nieces (BS/NN)
Legitimate collateral relatives
th
within the 5 degree (C5)
State
or
5
6
7
Everyone
No one
LC and ILC
LC
No one
No one
Excluded By
No one
SS
SS
ILC + SS
SS, LC, LP
SS + ILC
Concurs With
Excludes
Ascendants,
Collaterals and
State
ILP,
Collaterals and
State
Collaterals and
State
Collaterals and
State
Collaterals other than
siblings, nephews and nieces,
State
ILP
SS
All other collaterals and
State
th
Siblings,
Nephews
Nieces
Other collaterals within 5
degree
State
PAGE 287
UP LAW BOC
OUTLINE
SHARES
OF
CIVIL LAW
AND
AND
AND
AND
SURVIVING
SPOUSE
AND
LEGITIMATE
BROTHERS
AND
SISTERS, NEPHEWS AND NIECES
SURVIVING
SPOUSE
ILLEGITIMATE PARENTS
ILLEGITIMATE
CHILDREN
SURVIVING SPOUSE
LEGITIMATE
PARENTS
SURVIVING SPOUSE
LEGITIMATE
PARENTS
ILLEGITIMATE CHILDREN
SUCCESSION
INTESTATE
AND
LEGITIMATE
CHILDREN
ILLEGITIMATE CHILDREN
AND
LEGITIMATE
CHILDREN
SURVIVING SPOUSE
Divide entire estate equally between the
legitimate children and the surviving spouse,
the latter deemed as one child. The same rule
holds where there is only one child.
Children as used in Art. 996 is interpreted to
include a situation where there is only one
child.
ONLY
LEGITIMATE ASCENDANTS
(EXCLUDING PARENTS)
PAGE 288
UP LAW BOC
AND
CIVIL LAW
RIGHT OF ACCRETION
Provisions Common to
Testate and Intestate
Succession
STATE
SUCCESSION
SURVIVING
SPOUSE
AND
ILLEGITIMATE
BROTHERS
AND
SISTERS, NEPHEWS AND NIECES
Surviving spouse gets of the estate while
the rest gets the other with the nephews
and nieces inheriting by representation, if
proper; Note that all the other relatives
should be illegitimate because of the ironcurtain rule. [Art. 994, CC]
ILLEGITIMATE
PARENTS
AND
CHILDREN OF ANY KIND (WHETHER
LEGITIMATE
OR
ILLEGITIMATE
CHILD)
BROTHERS
LEGITIMATE
SISTERS ONLY
Divide the entire estate such that full-blood
brothers/sisters gets a share double the
amount of a half-blood brother or sister. [Art.
1004 and 1006, CC]
LEGITIMATE
BROTHERS
AND
SISTERS, NEPHEWS AND NIECES
Divide the entire estate observing the 2 is to 1
ratio for full and half-blood relationships with
respect to the brothers and sisters, with the
nephews
and
nieces
inheriting
by
representation, if proper. [Art. 1005 & 1008,
CC]
PAGE 289
UP LAW BOC
TESTAMENTARY
SUCCESSION
FREE
PORTION
Representatio
n
Intestate
Succession
INTESTATE
SUCCESSION
CIVIL LAW
PERSONS
INCAPABLE
OF
SUCCEEDING [Arts. 1027, 739, 1032]
SUCCESSION
EXCEPTIONS [Balane]
(1) In testamentary succession, if the testator
provides otherwise.
(2) If the obligation is purely personal, and
hence intransmissible.
The heirs to whom the inheritance accrues shall
succeed to all the rights and obligations which
the heir who renounced or could not receive it
would have had. [Art. 1020, CC]
In testamentary succession, when the right of
accretion does not take place, the vacant
portion of the instituted heirs, if no substitute
has been designated, shall pass to the legal
heirs of the testator, who shall receive it with the
same charges and obligations. [Art. 1022, CC]
Accretion shall also take place among devisees,
legatees and usufructuaries under the same
conditions established for heirs. [Art. 1023, CC]
Accretion
Intestate
Succession
Representati
on
Intestate
Succession
Representati
on
Intestate
Succession
LEGITIME
Accretion
Intestate
Succession
Predecease
Incapacity
Accretion
Representatio
n
Intestate
Succession
Representati
on
Disinheritance
Intestate
Succession
Intestate
Accretion
Succession
Repudiation
PAGE 290
UP LAW BOC
Unworthiness
Unworthiness renders
a person incapable of
succeeding to the
succession, whether
testate or intestate
DETERMINATION
OF
[Arts.
ACCEPTANCE AND
REPUDIATION OF THE
INHERITANCE
CHARACTERISTICS
CIVIL LAW
CAPACITY
1041
Exceptions:
(1) Those falling under 2, 3, and 5 of Art. 1032
when the final judgment is rendered.
(2) Those falling under 4 of Art. 1032 when
the month allowed for the report expired.
(3) If the institution is conditional when the
condition is complied with.
[TOLENTINO, p. 539]
Disinheritance
Disinheritance is the
act by which a
testator, for just cause,
deprives a compulsory
heir of his right to the
legitime [Art. 815, CC]
SUCCESSION
1032, CC]
(1) Parents who have abandoned their children
or induced their daughters to lead a corrupt
or immoral life, or attempted against their
virtue;
(2) Any person who has been convicted of an
attempt against the life of the testator, his
or her spouse, descendants, or ascendants;
(3) Any person who has accused the testator of
a crime for which the law prescribes
imprisonment for six years or more, if the
accusation has been found groundless;
(4) Any heir of full age who, having knowledge
of the violent death of the testator, should
fail to report it to an officer of the law within
a month, unless the authorities have already
taken action; this prohibition shall not apply
to cases wherein, according to law, there is
no obligation to make an accusation;
(5) Any person convicted of adultery or
concubinage with the spouse of the
testator;
(6) Any person who by fraud, violence,
intimidation, or undue influence should
cause the testator to make a will or to
change one already made;
(7) Any person who by the same means
prevents another from making a will, or
from revoking one already made, or who
supplants, conceals, or alters the latter's
will;
(8) Any person who falsifies or forges a
supposed will of the decedent.
PARDON OF ACTS OF UNWORTHINESS
Express
Implied
Effected when the
Made by the execution
testator makes a will
of a document or any
instituting
the
writing in which the
unworthy heir with
decedent
condones
knowledge of the
the cause of incapacity
cause of incapacity
Revoked when the
testator revokes the
will or the institution
Cannot be revoked
PAGE 291
UP LAW BOC
Acceptance
Repudiation
Renders
the
transmission
of
successional rights
ineffective
Involves
the Equivalent to an
confirmation
of
act of disposition or
transmission
of
alienation
successional rights Publicity
requirement
is
necessary for the
protection of other
heirs and creditors
CIVIL LAW
CONCEPT OF COLLATION
COLLATION
1055, CC]
CC]
SUCCESSION
1050, CC]
(1) Express Acceptance one made in a public
or private document. [Art. 1049 par. 1)
(2) Tacit Acceptance one resulting from acts
by which the intention to accept is
necessarily implied or from acts which one
would have no right to do except in the
capacity of an heir.
(3) Implied Acceptance Within thirty days
after the court has issued an order for the
distribution of the estate in accordance with
the Rules of Court, the heirs, devisees and
legatees shall signify to the court having
jurisdiction whether they accept or
repudiate the inheritance; if they do not do
so within that time, they are deemed to
have accepted the inheritance. [Art. 1057,
CC]
An inheritance is deemed accepted:
(a) If the heir sells, donates, or assigns his
right to a stranger, or to his co-heirs, or
to any of them;
The heir must first accept the
inheritance before he can dispose of it.
(b) If the heir renounces the same, even
though gratuitously, for the benefit of
one or more of his co-heirs;
This is actually a donation. The heir
must first accept the inheritance before
he can donate it.
PAGE 292
UP LAW BOC
RELATED
(1)
(2)
(3)
(4)
NOT
CIVIL LAW
SUBJECT
TO
GENERALLY
NOT
IMPUTABLE
TO
LEGITIME/
CANNOT
BE
COLLATED,
SUBJECT TO EXCEPTIONS
(1) Expenses incurred by parents in giving their
children professional, vocational or other
career unless the parents so provide, or
unless they impair the legitime. [Art. 1067,
CC]
(2) Wedding gifts by parents and ascendants,
consisting jewelry, clothing and outfit,
except when they exceed 1/10 of the sum
disposable by will. [Art. 1070, CC]
(3) Neither shall donations to the spouse of the
child be brought to collation; but if they
have been given by the parent to the
spouses jointly, the child shall be obliged to
bring to collation one-half of the thing
donated. [Art. 1066, CC]
ABSOLUTELY NO COLLATION
Expenses for support, education (only
elementary
and
secondary),
medical
attendance, even in extraordinary illness,
apprenticeship, ordinary equipment, or
customary gifts. [Art. 1067, CC]
PROPERTIES
COLLATION
WHAT TO COLLATE
SUCCESSION
TO
OPERATIONS
COLLATION
(1)
(2)
(3)
(4)
PAGE 293
UP LAW BOC
CIVIL LAW
PROHIBITION TO PARTITION
The prohibition to partition for a period not
exceeding 20 years can be imposed even on
the legitime.
If the prohibition to the partition is for more
than 20 years, the excess is void.
Even if a prohibition is imposed, the heirs by
mutual agreement can still make the
partition.
SUCCESSION
PAGE 294
UP LAW BOC
CIVIL LAW
END OF WARRANTY
The obligation of warranty among co-heirs shall
cease in the following cases:
(1) The testator himself has made the partition
Unless it appears, or it may be reasonably
presumed, that his intention was
otherwise, but the legitime shall always
remain unimpaired.
(2) When it has been so expressly stipulated in
the agreement of partition
Unless there has been bad faith.
(3) When the eviction is due to a cause
subsequent to the partition, or has been
caused by the fault of the distributee of the
property. [Art. 1096, CC]
SUCCESSION
EFFECTS OF PARTITION
EFFECT
A partition legally made confers upon each heir
the exclusive ownership of the property
adjudicated to him [Art. 1091, CC]
WARRANTY
After the partition has been made, the coheirs shall be reciprocally bound to warrant
the title to, and the quality of, each property
adjudicated [Art. 1092 CC]
The reciprocal obligation of warranty shall be
proportionate to the respective hereditary
shares of the co-heirs;
If any one of them should be insolvent, the
other co-heirs shall be liable for his part in the
same proportion, deducting the part
corresponding to the one who should be
indemnified.
Those who pay for the insolvent heir shall
have a right of action against him for
reimbursement, should his financial condition
improve [Art. 1093 CC]
An action to enforce the warranty among the
co-heirs must be brought within ten years
from the date the right of action accrues. [Art.
1094 CC]
If a credit should be assigned as collectible,
the co-heirs shall not be liable for the
subsequent insolvency of the debtor of the
estate, but only for his insolvency at the time
the partition is made. [Art. 1095, CC]
PAGE 295
UP LAW BOC
OF
NULLITY
CIVIL LAW
FROM
DIFFERENCE
RESCISSION
SUCCESSION
PAGE 296
[Type text]
[Type text]
PAGE 297
[Type text]
UP LAW BOC
PARTNERSHIP
CIVIL LAW
OBJECT OF UNIVERSAL
PARTNERSHIP
OBJECT
Contract of Partnership
DEFINITION
By the contract of partnership:
(1) Two or more persons;
(2) Bind themselves to contribute money,
property, or industry to a common fund;
(3) With the intention of dividing the profits
among themselves [Art. 1767]
Article 1767 defines partnership from the
viewpoint of a contract. From the contract arises
the partnership relation [De Leon (2010)]
ESSENTIAL FEATURES
(1)
(2)
(3)
(4)
(5)
(6)
PARTIES
General rule: Any person capacitated to contract
may enter into a contract of partnership.
As such, the following persons cannot enter into
a contract of partnership:
(1) Those suffering from civil interdiction;
(2) Minors;
(3) Insane or demented persons;
(4) Deaf-mutes who do not know how to write;
(5) Incompetents who are under guardianship.
Exceptions : The capacity of the following
persons to enter into a contract of partnership,
though capacitated to contract generally, are
limited:
PAGE 298
UP LAW BOC
OBJECT OF PARTICULAR
PARTNERSHIP
CIVIL LAW
RULES TO DETERMINE
EXISTENCE
EXTENSION
TERM
COMMENCEMENT
DURATION
FORM
General rule: The contract may be constituted in
any form [Art. 1771].
Exceptions:
(1) Where immovable property or real rights
are contributed:
(a) The contract must appear in a public
instrument; and
(b) Attached to such instrument must be
an inventory, signed by the parties, of
the property contributed [Arts. 1771 and
1773];
(2) Where the capital is at least P3,000, in
money or property:
(a) The contract must appear in a public
instrument; and
(b) It must be recorded in the Office of the
Securities and Exchange Commission
(SEC).
As to the second, failure to comply with these
requirements, however, does not affect the
liability of the partnership and the partners to
third persons [Arts. 1768 and 1772].
PAGE 299
UP LAW BOC
CIVIL LAW
KINDS OF PARTNERS
KINDS
(1)
(2)
(3)
(4)
(5)
PAGE 300
UP LAW BOC
CIVIL LAW
Joint venture
Operates with
name
and
personality
Usually limited to a
single transaction
Partnership
Generally relates to a
continuing business of
various transactions of
a certain kind
Corporations
enter
into
ventures
Has
a
separate
juridical personality
Generally created by
either express or
implied contract
Partnership
no
Has
no
separate
juridical personality
Generally created by
law and may exist
even
without
a
contract
Co-ownership
There
is
agency
partners
Death or incapacity of
a co-owner does not
dissolve
the
coownership
There is no mutual
representation among
co-owners
has
Death or incapacity of
a partner dissolves the
partnership
A
co-owner
can
dispose of his share
without consent of
others
mutual
between
A partner cannot
dispose of his interest,
so as to make the
assignee a partner,
without consent of
others
Duration
limitation
An agreement to keep
a thing undivided for
more than ten years is
not allowed, but may
be extended
may
joint
firm
legal
Capitalist
partner
equitable
Share in profits
Money or property
Form of contribution
Industrial
partner
Industry
Just and
share
According
to
agreement; if none, in
proportion
to
contribution
According
to
agreement; if none, in
the same proportion
as the agreed share in
profits; if none, in
proportion
to
contribution
Share in losses
Exempted as to losses
as between partners,
but liable to third
persons,
without
prejudice
to
reimbursement from
capitalist partners
Cannot engage, for his
own account, in the
same kind of business
as that of the
partnership,
unless
there is a stipulation
to the contrary; should
he do so, he shall
bring to the common
fund
any
profits
accruing to him from
his transactions and
shall personally bear
all the losses [Art.
1808]
Engagement in business
Cannot engage in
business for himself,
unless the partnership
expressly permits him
to do so; should he do
so without permission,
the capitalist partners
may: (1) exclude him
from the firm; or (2)
avail themselves of
the benefits obtained
in violation of the
prohibition, with right
to damages in either
case [Art. 1789]
PAGE 301
UP LAW BOC
Partnership
CIVIL LAW
Conjugal Partnership of
Gains
by
Has
no
personality
Partnership
Corporation
Has
personality
Commencement is on
the date of the
celebration of the
marriage and any
stipulation
to
the
contrary is void
Created by voluntary
agreement of two or
more partners of either
sex
Commencement date
may be stipulated
Administration belongs
to the spouses jointly,
but
decision
of
husband prevails in
case of disagreement
A partner cannot
dispose of his interest,
so as to make the
assignee a partner,
without consent of
others
When management is
not agreed upon,
every partner may act
for the partnership
Personality
commences from the
moment of execution
of the contract
Created by agreement
Stockholders
are
liable only to the
extent of their shares
Management is vested
in the board of
directors or trustees
Personality
commences from the
issuance of certificate
of incorporation
Created by operation
of law
The partnership is
primarily liable; the
partners are liable only
subsidiarily
Capital is contributed
Has
personality
Capital
is
not
contributed, although
fees are collected from
members
Has
no
personality
juridical
juridical
Governed by law
Management shared by
all partners, unless
otherwise agreed upon
no
Taxable as in a corporation
Association
Duration
limitation
has
May be dissolved at
any time by one or all
of the partners
juridical
Partnership
PAGE 302
UP LAW BOC
MONEY
OR
CIVIL LAW
Requisites:
(1) There exist at least two debts, one where
the collecting partner is creditor, and the
other, where the partnership is the creditor;
CONTRIBUTION OF INDUSTRY
OF
CONTRIBUTION
PROPERTY
With respect to contribution of property, a
partner is obliged to:
(1) To contribute, at the beginning of the
partnership or at the stipulated time, the
money, property or industry which he
undertook to contribute;
(2) In case a specific and determinate thing is
to be contributed:
(a) To warrant against eviction in the same
manner as a vendor; and
(b) To deliver to the partnership the fruits
of the property promised to be
contributed, from the time they should
have been delivered, without need of
demand [Art. 1786];
(3) In case a sum of money is to be contributed,
or in case he took any amount from the
partnership coffers, to indemnify the
partnership for:
(a) Interest; and
(b) Damages, from the time he should have
complied with his obligation, or from
the time he converted the amount to his
own use, respectively [Art. 1788].
AMOUNT OF CONTRIBUTION
General rule: Partners are to contribute equal
shares to the capital of the partnership.
Exception: When there is an agreement to the
contrary, the contribution shall follow such
agreement [Art. 1790].
PAGE 303
UP LAW BOC
FOR
CIVIL LAW
RIGHT TO ASSOCIATE
ANOTHER IN SHARE
RESPONSIBILITY TO PARTNERS
INDEMNITY
RIGHT TO
DAMAGES
SET-OFF OF LIABILITY
PAGE 304
UP LAW BOC
RIGHT TO INSPECT
PARTNERSHIP BOOKS
CIVIL LAW
Partnership property
OF
(1)
(2)
(3)
(4)
(5)
CERTAIN
OWNERSHIP
PROPERTIES
Partnership capital
PROPERTY RIGHTS OF
PARTNERS
IN GENERAL
PAGE 305
UP LAW BOC
CIVIL LAW
IN
BY
BY TWO OR MORE
When there are two or more managing partners
appointed, without specification of their duties
or without a stipulation on how each one will
act:
MANAGING
PARTNERS
REVOCATION
OF
POWER
MANAGING PARTNER
RIGHT TO PARTICIPATE
MANAGEMENT
INTEREST IN PARTNERSHIP
A partners interest in the partnership is his
share of the profits and surplus [Art. 1812].
ASSIGNMENT OF INTEREST
Assignment by a partner of his whole interest in
the partnership, of itself:
(1) Does not dissolve the partnership; or
(2) Does not entitle the assignee to:
(a) Interfere in the management or
administration of the partnership
business or affairs;
(b) Require information or account of
partnership; or
(c) Inspect the partnership books.
It merely entitles the assignee to:
(1) Receive the profits to which the assigning
partner was entitled;
(2) In case of fraud in management, avail
himself of the usual remedies;
(3) In case of dissolution:
(a) Receive his assignors interest; and
(b) Require an accounting from the date
only of the last account agreed to by all
the partners [Art. 1813].
PAGE 306
UP LAW BOC
CIVIL LAW
OF
MUTUAL AGENCY
STIPULATION OF UNANIMITY
Art. 1802. In case there is a stipulation that none
of the managing partners shall act without the
consent of others, the concurrence of all is
necessary for the validity of the acts, and the
absence or disability of one cannot be alleged,
unless there is imminent danger of grave or
irreparable injury to the partnership.
PAGE 307
UP LAW BOC
CIVIL LAW
Exceptions:
(1) They cannot use a name which is identical
or deceptively or confusingly similar to an
existing or corporation [or partnership] or to
any other name already protected by law or
is patently deceptive, confusing or contrary
to existing laws [Sec. 18, Corporation Code].
(2) Use of names of deceased partner in law
firms is permissible provided that the firm
indicates in all its communications that said
partner is deceased [Rule 3.02, Code of
Professional Responsibility].
OBLIGATION
TO
OPERATE
UNDER A FIRM NAME
Obligations
of
the
Partnership/Partners to
Third Persons
RENDER
OBLIGATION
TO
INFORMATION
Partners shall render on demand true and full
information of all things affecting the
partnership to:
(1) Any partner;
(2) The legal representative of any deceased
partner; or
(3) The legal representative of any partner
under legal disability [Art. 1806].
PAGE 308
UP LAW BOC
AN
INDUSTRIAL
CIVIL LAW
OF
PRO RATA
The partners are liable pro rata.
This liability is not increased even when a
partner:
(1) Has left the country and the payment of his
share of the liability cannot be enforced [CoPitco v. Yulo (1907)]; or
(2) His liability is condoned by the creditor
[Island Sales v. United Pioneers (1975)].
LIABILITY
PARTNER
PAGE 309
UP LAW BOC
CIVIL LAW
LIABILITY OF THE
PARTNERSHIP FOR
MISAPPLICATION OF MONEY
OR PROPERTY
LIABILITY OF PARTNERSHIP
FOR WRONGFUL ACTS OF A
PARTNER
LIABILITY OF PARTNERSHIP
FOR ADMISSION BY A PARTNER
ACTS IN CONTRAVENTION OF A
RESTRICTION
Any act of a partner in contravention of a
restriction on authority does not bind the
partnership to persons having knowledge of the
restriction [Art. 1818, par. 4].
CONVEYANCE
OF
PARTNERSHIP REAL PROPERTY
TITLE IN PARTNERSHIP NAME
Any partner may convey the real property in the
name of the partnership.
The partnership can recover it, except when:
(1) The act of the partner binds the partnership,
when he has authority to carry out the usual
business of the partnership, under Article
1818, 1st par.; or
(2) If not so authorized, the property has been
conveyed by the grantee, or a person
claiming under him, to a holder for value
and without knowledge that the partner
exceeded his authority [Art. 1819, par. 1].
A partner authorized to carry out the usual
business may convey, in his own name, the
equitable interest of the partnership [Art. 1819,
par. 2].
PAGE 310
UP LAW BOC
CIVIL LAW
NATURE OF LIABILITY
consenting
to
the
contract
or
representation.
(3) When there are no such other persons, he is
separately liable [Art. 1825, par. 1].
LIABILITY IN CASE OF
PARTNERSHIP BY ESTOPPEL
PARTNER BY ESTOPPEL
A partner by estoppel is a person who, by words
spoken or written or by conduct (1) represents
himself as a partner or (2) consents to another
representing him to anyone as a partner:
(1) In an existing partnership; or
(2) With one or more persons not actual
partners [Art. 1825, par. 1].
LIABILITY OF A PARTNER BY
ESTOPPEL
PERSONAL REPRESENTATION
A partner by estoppel is liable to any such
persons:
(1) To whom such representation has been
made; and
(2) Who has, on the faith of such
representation, given credit to the actual or
apparent partnership [Art. 1825, par. 1].
PUBLIC REPRESENTATION
If he has made such representation or
consented to its being made in a public manner,
whether the representation has or has not been
(personally) made or communicated to such
persons so giving credit by or with his
knowledge, and:
(1) Partnership liability results, he is liable as
though he were an actual member of the
partnership.
(2) No partnership liability results, he is liable
pro rata with the other persons, if any, so
PAGE 311
UP LAW BOC
OF
CAUSES OF DISSOLUTION
WITHOUT VIOLATION
AGREEMENT
(1)
(2)
(3)
(4)
CIVIL LAW
THE
CONCEPTS
LIABILITY OF AN INCOMING
PARTNER
A person admitted as a partner is liable:
(1) For obligations incurred subsequent to his
admission as the other partners are liable;
(2) For obligations incurred before his
admission, but will be satisfied only out of
the partnership property, unless otherwise
stipulated that he fully assumes such
obligations.
Ratio:
(1) The new partner partakes of the benefits of
the partnership property and an already
established business.
(2) He has every means of obtaining full
knowledge of the debts of the partnership
and remedies that amply protect his
interest [De Leon (2010)].
NOTICE TO OR KNOWLEDGE OF
THE PARTNERSHIP
The following operate as notice to or knowledge
of the partnership:
(1) Notice to any partner of any matter relating
to partnership affairs;
(2) Knowledge of the partner acting in the
particular matter acquired while a partner;
(3) Knowledge of the partner acting in the
particular matter then present to his mind;
or
(4) Knowledge of any other partner who
reasonably could and should have
communicated it to the acting partner.
These do not apply in case of fraud on the
partnership committed by or with the consent of
the partner [Art. 1821].
PAGE 312
UP LAW BOC
not
OF
permit
THE
(1)
(2)
(3)
(4)
CIVIL LAW
OTHER CAUSES
BY DECREE OF A COURT
do
circumstances
IN
CONTRAVENTION
AGREEMENT
Where
dissolution under any other provision of Article
1830, it may also be dissolved by the express
will of any partner at any time.
Thus, even if there is a specified term, one
partner can cause its dissolution by expressly
withdrawing even before the expiration of the
period, with or without justifiable cause. If the
cause is not justified or no cause was given, the
withdrawing partner is liable for damages but in
no case can he be compelled to remain in the
firm [Rojas v. Maglana (1990)].
BY OPERATION OF LAW
(1) By any event which makes it unlawful for
the business of the partnership to be carried
on or for the members to carry it on in
partnership;
(2) When a specific thing which a partner had
promised to contribute, perishes before
delivery, or by the loss of the thing, only the
use or enjoyment of which has been
contributed; the loss of a specific thing,
however, does not dissolve the corporation
after its ownership has already been
transferred to the partnership;
(3) By the death of any partner;
(4) By the insolvency of any partner or of the
partnership;
(5) By the civil interdiction of any partner;
PAGE 313
UP LAW BOC
EFFECTS OF DISSOLUTION
CIVIL LAW
PAGE 314
UP LAW BOC
OF
CIVIL LAW
MANNER OF WINDING UP
WINDING UP PARTNERS
LAIBILITY
Exceptions:
(1) The dissolution being by act of any partner,
the partner acting for the partnership had
knowledge of the dissolution; or
(2) The dissolution being by death or insolvency
of a partner, the partner acting for the
partnership had knowledge or notice of the
death or insolvency [Art. 1833].
ON
EXISTING
PARTNERS
General rule: Dissolution does not of itself
discharge the existing liability of any partner.
Exception: A partner may be relieved when there
is an agreement to that effect between:
(1) Himself;
(2) The partnership creditor; and
(3) The person or partnership continuing the
business.
Such agreement may be inferred from the
course of dealing between the creditor having
knowledge of the dissolution and the person or
partnership continuing the business.
In case of dissolution by death, the individual
property of a deceased partner is liable for
obligations of the partnership incurred while he
was a partner, after payment of his separate
debts [Art. 1835].
PAGE 315
UP LAW BOC
OF
CIVIL LAW
PARTNERSHIP
COMPOSITION
ASSETS
SETTLING
OF
ACCOUNTS
BETWEEN PARTNERS
DISSOLUTION IN CONTRAVENTION
OF THE AGREEMENT
PARTNER WHO DID NOT CAUSE THE
DISSOLUTION
The partners who did not cause the dissolution
wrongfully has the following rights:
(1) To demand the right under Article 1837, 1st
par.;
(2) To be indemnified for damages for breach
of the agreement against the partner who
caused the dissolution wrongfully [Art.
1837(1)];
(3) To continue the business:
(a) In the same name;
(b) By themselves or jointly with others;
(c) During the agreed term for the
partnership.
For the purpose of continuing the business, the
said partners may possess the partnership
property provided:
(1) They secure the payment by bond approved
by the court; or
(2) They pay any partner who has caused the
dissolution wrongfully the value of his
interest in the partnership, less any
damages recoverable, and indemnity
against all present or future partnership
liabilities [Art. 1837(2)].
PARTNER WHO CAUSED THE DISSOLUTION
The partner who caused the dissolution
wrongfully has the following rights:
(1) If the business is not continued, all the
rights Article 1837, par. 1, subject to liability
for damages;
(2) If the business is continued, the right, as
against his co-partners and all claiming
through them, to:
(a) Ascertainment, without considering the
value of the goodwill of the business,
and payment to him in cash the value of
his partnership interest, less any
damage, or have the payment secured
by a bond approved by the court; and
(b) Be released from all existing liabilities
of the partnership [Art. 1837(3)].
PAGE 316
UP LAW BOC
OF
THE
CIVIL LAW
OF
NEW
AS CREDITORS
PARTNERSHIP
RIGHTS OF CREDITORS
DISSOLVED PARTNERSHIP
DISTRIBUTION OF PROPERTY OF
INSOLVENT PARTNER
ENFORCEMENT OF CONTRIBUTION
The following persons have the right to enforce
the contributions:
(1) An assignee for the benefit of creditors;
(2) Any person appointed by the court; or
(3) To the extent of the amount which he has
paid in excess of his share of the partnership
liability, any partner or his legal
representative [Art. 1839(5) and (6)].
The individual property of a deceased partner
shall be liable for the contributions [Art.
1839(7)].
DOCTRINE OF MARSHALLING OF
ASSETS
When partnership property and the individual
properties of the partners are in possession of a
court for distribution:
(1) Partnership creditors have priority on
partnership property;
(2) Separate creditors have priority on
individual property, saving the rights of lien
of secured creditors.
PAGE 317
UP LAW BOC
(1)
(2)
(3)
(4)
(5)
CIVIL LAW
CHARACTERISTICS
DEFINITION
Limited Partnership
RIGHT TO AN ACCOUNT
OF
PRIORITY
OF
CREDITORS
DISSOLVED PARTNERSHIP
Creditors of the dissolved partnership have prior
right to any claim of the retired partner or the
representative of the deceased partner against
the person or partnership continuing the
business [Art. 1840, par. 3].
This is without prejudice to the right of creditors
to set aside any assignment on the ground of
fraud [Art. 1840, par. 4].
RIGHTS OF A RETIRED
PARTNER OR A
REPRESENTATIVE OF
DECEASED PARTNER
Unless otherwise agreed upon, when any
partner retires or dies, and the business is
continued without any settlement of accounts
as between him or his estate and the person or
partnership continuing the business, he or his
legal representative, as against such person or
partnership, subject to the prior rights of
creditors of the dissolved partnership:
(1) May have the value of his interest at the
date of dissolution ascertained; and
(2) Shall receive as an ordinary creditor:
(a) An amount equal to the value of his
interest in the dissolved partnership
with interest; or
(b) At his option or at the option of his legal
representative, in lieu of interest, the
profits attributable to the use of his
PAGE 318
UP LAW BOC
Dissolves partnership
General
partnership
May be constituted in
any form, subject to
exceptions
Articles 1828-1842
CIVIL LAW
Limited partner
Assignable
Limited
partnership
Firm name
Composition
Creation
GENERAL
AND
LIMITED
PARTNERSHIP DISTINGUISHED
Not assignable
Assignability of interest
General partner
Limited partner
Extent of liability
Personally,
but
subsidiarily, liable for
obligations of the
partnership
No right to participate
in management
Nature of contribution
Cash, property
industry
Proper party in proceedings by
or against partnership
Proper party
Firm name
Name may appear in
the firm name
Not prohibited
PAGE 319
UP LAW BOC
FORMATION
GENERAL REQUIREMENTS
IN
CIVIL LAW
THE
MANAGEMENT
Requisites:
(1) The partner knew the statement to be false:
(a) At the time he signed the certificate; or
(b) Subsequently, but having sufficient time
to cancel or amend it, or file a petition
for its cancellation or amendment, and
he failed to do so;
(2) The person seeking to enforce liability has
relied upon the false statement in
transacting business with the partnership;
and
(3) The person suffered loss as a result of
reliance upon such false statement.
FALSE
STATEMENT
CERTIFICATE
PURPOSE OF FILING
The purpose of filing the certificate in the SEC
is:
(1) To give actual or constructive notice to
potential creditors or persons dealing with
the partnership; and
(2) To acquaint them with its essential features,
including the limited liability of limited
partners [De Leon (2010)].
FIRM NAME
General rule: The surname of a limited partner
shall not appear in the partnership name.
Exceptions:
(1) It is also the surname of a general partner;
or
(2) Prior to the time when the limited partner
became such, the business had been carried
on under a name in which his surname
appeared.
A limited partner whose surname appears in a
partnership name contrary to this prohibition is
liable as a general partner to partnership
creditors who extend credit without actual
knowledge that he is not a general partner.
PAGE 320
UP LAW BOC
TO
TO
CIVIL LAW
PARTNERSHIP
General rule: A limited partner is not liable as a
general partner. His liability is limited to the
extent of his contributions [Art. 1843].
LIABLITY
CREDITORS
RELATED
OBLIGATIONS OF A LIMITED
PARTNER
OBLIGATIONS
CONTRIBUTION
The contributions of a limited partner may be
cash or other property, but not services [Art.
1845].
A limited partner is liable for partnership
obligations when he contributes services
instead of only money or property to the
partnership [De Leon (2010)].
A limited partner is liable to the partnership:
(1) For the difference between his actual
contribution and that stated in the
certificate as having been made; and
(2) For any unpaid contribution which he
agreed in the certificate to make in the
future at the time and on the conditions
stated in the certificate [Art. 1858, par. 1].
PAGE 321
UP LAW BOC
RETURN
CIVIL LAW
OF
A limited partner may have his contributions
withdrawn or reduced when:
(1) All the liabilities of the partnership, except
liabilities to general partners and to limited
partners on account of their contributions,
have been paid or there remains property of
the partnership sufficient to pay them;
(2) The consent of all members is had, unless
the return may be demanded as a matter of
right; and
RIGHT
TO
CONTRIBUTION
PAGE 322
UP LAW BOC
CIVIL LAW
DISSOLUTION
PREFERENCE OF LIMITED
PARTNERS
General rule: The limited partners stand on
equal footing.
Exception: By an agreement of all the partners
(general and limited) in the certificate, priority or
preference may be given to some limited
partners over others with respect to:
(1) The return of contributions;
(2) Their compensation by way of income; or
(3) Any other matter [Art. 1855].
PAGE 323
UP LAW BOC
CIVIL LAW
AMENDMENT OF CERTIFICATE
CANCELLATION OF CERTIFICATE
AMENDMENT OR
CANCELLATION OF
CERTIFICATE
SETTLEMENT OF ACCOUNTS
ORDER OF PAYMENT
In settling accounts after dissolution, the
liabilities of the partnership shall be entitled to
payment in the following order:
(1) Those to creditors, including limited
partners except those on account of their
contributions, in the order of priority as
provided by law;
(2) Those to limited partners in respect to their
share of the profits and other compensation
by way of income in their contributions;
(3) Those to limited partners in respect to the
capital of their contributions;
(4) Those to general partners other than for
capital and profits;
(5) Those to general partners in respect to
profits;
(6) Those to general partners in respect to
capital [Art. 1863, par. 1].
Note: In settling accounts of a general
partnership, those owing to partners in respect
to capital enjoy preference over those in respect
to profits.
PAGE 324
UP LAW BOC
CIVIL LAW
INTENT
(1) On the part of the principal, there must be
an actual intention to appoint or an
intention naturally inferable from his words
or actions; and
(2) On the part of the agent, there must be an
intention to accept the appointment and act
on it [Victorias Milling v. CA (2000)].
CAPACITY
(1) A principal must have legal capacity to
enter into contract in his own right.
(2) An agent must have legal capacity to enter
into the contract of agency, although he
may not have capacity to enter into the
particular contract subject of agency.
PARTIES
ESSENTIAL ELEMENTS
FORMATION
AGENCY
Contract of Agency
DEFINITION
By the contract of agency:
(1) A person binds himself to render some
service or to do something;
(2) In representation or on behalf of another;
(3) With the consent or authority of the latter
[Art. 1868].
Agency may refer to both a contract, as defined
in the provision, and the representative relation
created. As a relationship, it is fiduciary (based
on trust and confidence), where the agent is
empowered to contract with a third person on
behalf of a principal [De Leon (2010)].
The basis of agency is representation [Victorias
Milling v. CA (2000)].
CHARACTERISTICS
The contract of agency is:
(1) Consensual, perfected by mere consent;
(2) Nominate, has its own name;
(3) Preparatory, entered into as a means to
enter into other contracts;
(4) Principal, does not depend on another
contract for existence and validity;
PAGE 325
UP LAW BOC
CIVIL LAW
PRESUMPTION OF EXISTENCE
Exceptions:
(1) Personal acts, which the law or public policy
requires to be performed personally (e.g., to
vote, make a will, make statements under
oath, or attend board meetings as director
or trustee of a corporation);
(2) Criminal acts;
(3) Acts not allowed by law to be done by the
principal.
ACTS DELEGATED
FORM OF CONTRACT
POWER OF ATTORNEY
PAGE 326
UP LAW BOC
CIVIL LAW
Partnership
A partner acts for the
other partners, the
partnership
and
himself
Representation
An agent is not
entitled to profits, only
compensation
A partners power to
bind his co-partners is
not subject to their
control
A partner is personally
liable with all his
property,
after
exhaustion of the
partnership properties
A partner is entitled to
a share in the profits
of the partnership
Share in profits
Personal liability
An agents power to
bind the principal is
subject to the latters
control
Control
Agency
AGENCY
AND
OTHER
CONTRACTS DISTINGUISHED
Exceptions:
(1) Where the agents interests are adverse to
those of the principal;
(2) Where the agents duty is not to disclose the
information (e.g., he is informed by way of
confidential information);
(3) Where the person claiming the benefit of
the rule colludes with the agent to defraud
the principal [De Leon (2010)].
Requisites:
(1) Actual notice to the agent;
(2) Notice must pertain to a matter of fact and
not of law;
(3) The fact must be within the scope of the
agents authority.
COMMUNICATION OF EXISTENCE
There are two ways of giving notice of agency
with different effects:
(1) If a person specially informs another (e.g.,
by letter), the person appointed is
considered an agent with respect to the
person specially informed;
(2) If a person states by public advertisement,
the person appointed is considered an
agent with regard to any person.
In either case, the power of the agent continues
in full force until the notice is rescinded in the
same manner in which it was given [Art. 1873].
EFFECT
EXTENSION OF PERSONALITY
In an agent-principal relationship, the
personality of the principal is extended through
the facility of the agent. The agent, by legal
fiction, becomes the principal, authorized to
perform all acts which the latter would have
him do [Litonjua v. Eternit Corp. (2006)].
PAGE 327
UP LAW BOC
Agency
Control
An agent acts under
the
control
and
instruction of the
principal
Agency
Control
CIVIL LAW
Lease of property
A lessee is not subject
to the control of the
lessor
Lease of property
involves property only
the
acquires
Sale
Buyer
ownership
Ownership of goods
retains
Payment
A buyer pays
purchase price
Generally, a buyer
cannot return the
goods bought
is
the
Sale
Ownership
transferred
buyer
Ownership of goods
Ownership is acquired
in behalf of the
principal
Change in price
Generally, any change
in the price is borne by
the principal
Payment
Price is paid in behalf
of the principal
to
Agency to buy
Generally, an agent
can return goods
unsold
Return of goods
Principal
ownership
Agency to sell
Authority to bind
Things involved
Independent
contractor
An
independent
contractor is not
subject to control,
except insofar as the
result of the work is
concerned
Employer is not liable
for torts committed by
the
independent
contractor
Sub-agents
Agents of the agent is
still subject to the
control of the principal
Lease of service
Employment
Basis
Agency
Representation
Execution of piece of
work or rendition of
service
Purpose
Execution of juridical
acts in relation to third
persons
Material acts only
Authorized acts
Juridical
acts
(creation,
modification,
extinction of relations
with third parties)
Discretion
Ordinarily,
lessor
performs
only
ministerial functions
Two parties are
involved (employeremployee)
Parties
An agent is authorized
to exercise discretion
PAGE 328
UP LAW BOC
Agency
A guardian has no
power to impose
personal liability on
the ward
CIVIL LAW
IMPLIED AGENCY
EXPRESS AGENCY
AS TO MANNER OF CREATION
Guardianship
A guardian represents
an
incapacitated
person
Person represented
An agent represents a
capacitated person
A
guardian
is
appointed by the court
Source of authority
An agent is appointed
by the principal
A guardian is not
subject to the control
of the ward
Control
An agent is subject to
the control of the
principal
An agent can make
the
principal
principally liable
Trust
Authority to bind
Agency
by
Title to property
Title
retained
principal
A trustee is only
subject
to
the
stipulated guidance of
the trustor
Control
An agent is subject to
the control of the
principal
Termination
In general, an agency
may be revoked at any
time
Kinds of Agency
IN GENERAL
As to manner of creation:
(1) Express;
(2) Implied.
As to cause or consideration:
(1) Gratuitous;
(2) Compensated or onerous.
PAGE 329
UP LAW BOC
CIVIL LAW
AS TO AUTHORITY CONFERRED
AS TO EXTENT OF BUSINESS
COVERED
Special agency
Usually involves
single transaction
Only
specific
authorized acts or
those
necessarily
implied
Scope of authority
continuous
Authority to bind
Acts within the scope
of authority, even in
conflict with special
instructions, may bind
principal
No notice required,
since third parties are
required to inquire as
to authority
Termination of authority
Notice
to
third
persons required to
terminate apparent
authority
Instructions
Notice
to
third
persons required
The instructions, in so
far as they grant
authority, are strictly
construed
PAGE 330
UP LAW BOC
CIVIL LAW
Rests on intention
Rests on prejudice
Estoppel
Retroacts
as
if
originally authorized
Substance is the
principals
inducement for third
party to act to his
prejudice
Substance
is
confirmation
of
unauthorized
acts
after it has been done
Ratification
Through estoppel:
(1) An admission or representation;
(2) Is rendered conclusive upon the person
making it; and
(3) Cannot be denied or disproved as against
the person relying thereon [Art. 1431].
AGENCY BY ESTOPPEL
SPECIAL KINDS
PAGE 331
UP LAW BOC
CIVIL LAW
Qualifications:
(1) Coupled with interest or not, the authority
certainly can be revoked for a just cause,
such as when the attorney-in-fact betrays
the interest of the principal. It is not open to
serious doubt that the irrevocability of the
power of attorney may not be used to shield
the perpetration of acts in bad faith, breach
of confidence, or betrayal of trust, by the
agent for that would amount to holding
that a power coupled with an interest
authorizes the agent to commit frauds
against the principal [Coleongco v. Claparols
(1964)].
(2) A mere statement in the power of attorney
that it is coupled with an interest is not
enough. In what does such interest consist
must be stated in the power of attorney [Del
Rosario v. Abad (1958)].
IRREVOCABLE AGENCY
PAGE 332
UP LAW BOC
(1)
(2)
(3)
(4)
CIVIL LAW
KINDS OF AUTHORITY
AUTHORITY OF AN AGENT
KINDS OF AGENTS
AS TO NATURE AND EXTENT OF
AUTHORITY
According to the nature and extent of their
authority, agents have been classified into:
(1) Universal agents are authorized to do all
acts for his principal which can lawfully be
delegated to an agent. So far as such a
condition is possible, such an agent may be
said to have universal authority.
(2) General agents are authorized to do all acts
pertaining to a business of a certain kind or
at a particular place, or all acts pertaining to
a business of a particular class or series. He
has usually authority either expressly
conferred in general terms or in effect made
general by the usages, customs or nature of
the business which he is authorized to
transact. An agent, therefore, who is
empowered to transact all the business of
his principal of a particular kind or in a
particular place, would, for this reason, be
ordinarily deemed a general agent.
(3) Special agents are authorized to do some
particular act or to act upon some particular
occasion (i.e., acts usually in accordance
with specific instructions or under
limitations necessarily implied from the
nature of the act to be done) [Siasat v. IAC
(1985)].
(4)
PAGE 333
UP LAW BOC
POWER
TO
PRINCIPAL
BIND
CIVIL LAW
THE
Requisites:
SCOPE OF AUTHORITY
General rule: The scope of the authority of
the agent is what appears in the terms of the
power of attorney [Siredy Enterprises v. CA
(2002)].
Exceptions: An agent is considered acting within
the scope of his authority when:
(1) He performs acts which are conducive to the
accomplishment of the purpose of the
agency [Art. 1881];
(2) He performed the agency in a manner more
advantageous to the principal than that
specified by said principal [Art. 1881];
(3) The principal ratifies the act, expressly or
tacitly [Art. 1910].
Art. 1900. So far as third persons are concerned,
an act is deemed to have been performed within
the scope of the agents authority, if such act is
within the terms of the power of attorney, as
written, even if the agent has in fact exceeded
the limits of his authority according to an
understanding between the principal and the
agent.
While third persons are bound to inquire into
the extent or scope of the agents authority, they
are not required to go beyond the terms of the
written power of attorney. Third persons cannot
be adversely affected by an understanding
between the principal and his agent as to the
limits of the latters authority. Third persons
need not concern themselves with instructions
given by the principal to his agent outside of the
written power of attorney [Siredy Enterprises v.
CA (2002)].
PAGE 334
UP LAW BOC
Obligations of Agent
IN GENERAL
WHEN
CIVIL LAW
AGENT
ADVANCE
OBLIGATION TO
NECESSARY FUNDS
OBLIGATION
DECLINES
PAGE 335
UP LAW BOC
OBLIGATION TO ACT IN
ACCORDANCE WITH
INSTRUCTIONS
Authority
Private
rule
of
guidance to the agent
Instructions
FOR
CIVIL LAW
THINGS
IS
NOT
(1) If the agent or broker acted only as a
middleman with the task of merely bringing
together the vendor and the vendee
[Domingo v. Domingo (1971)].
(2) If the agent had informed the principal of
the gift or bonus or profit he received from
the purchaser and the principal did not
object thereto;
(3) When a right of lien exists in favor of the
agent.
WHEN
OBLIGATION
APPLICABLE
WHAT TO DELIVER
OBLIGATION
RECEIVED
Relates
to
the
transaction
or
business with which
the
agent
is
empowered to act
Does not bind third
parties
OBLIGATION
TO
PREFER
INTEREST OF PRINCIPAL
General rule: The agent shall be liable for
damages if, there being a conflict between his
interest and those of the principal, he should
prefer his own [Art. 1889].
Exceptions: The agent is not liable for giving
preference to his own when:
(1) The principal waives the benefit of this rule,
with full knowledge of the facts; or
(2) When the interest of the agent is superior.
An example of the latter is where the agent has
security interest in goods of the principal in his
possession, he may protect his interest even if in
doing so, he disobeys the principals orders or
injures his interest [De Leon (2010)].
PAGE 336
UP LAW BOC
(2)
(3)
(4)
CIVIL LAW
OBLIGATION
FOR
SUMS
APPLIED TO HIS OWN USE
RESPONSIBILITY OF TWO OR
MORE AGENTS
EFFECTS OF SUBSTITUTION
(1)
SUB-AGENCY
A sub-agent or substitute is a person employed
or appointed by an agent as his agent, to assist
him in the performance of an act for the
principal, which the agent has been empowered
to perform. The agent is a principal with respect
to the sub-agent.
General rule: The agent may appoint a subagent.
Ratio: The law allows such substitution for
reasons of convenience and practicality.
Exceptions:
(1) The appointment is prohibited by the
principal [Art. 1892];
(2) The work entrusted to the agent requires
special knowledge, skill, or competence,
unless authorized to do so by the principal
[De Leon (2010)].
PAGE 337
UP LAW BOC
PRESENTATION
ATTORNEY
OF
OF
CIVIL LAW
POWER
OBLIGATIONS TO THIRD
PERSONS
LIABILITY OF AGENT FOR
OBLIGATIONS CONTRACTED
General rule: The agent who acts as such is not
personally liable to the party with whom he
contracts. The principal is responsible for such
acts done within the scope of the authority
granted to the agent, and should bear any
damage caused to third persons [Art. 1910].
Exceptions: He is personally liable when:
(1) He acts in his own name [Art. 1883];
(2) He expressly binds himself; or
(3) He exceeds the limits of his authority
without giving such party sufficient notice of
his powers [Art. 1897].
VOID CONTRACTS
The contract entered into by an agent on behalf
of the principal shall be void when:
(1) The agent contracts in the name of the
principal;
(2) He exceeded the scope of his authority;
(3) The principal does not ratify the contract;
and
(4) The party with whom the agent contracted
is aware of the limits of the powers granted
by the principal.
The agent, however, is liable if he undertook to
secure the principals ratification.
IGNORANCE OF AGENT
PAGE 338
UP LAW BOC
Ordinary agent
Acts in his own name
or that of his principal
Commission agent
GOODS
CIVIL LAW
CREDIT
SALE OF GOODS ON
WITHOUT AUTHORITY
OBLIGATIONS OF A
COMMISSION AGENT
FACTOR OR COMMISSION AGENT
A factor or commission agent is one whose
business is to receive and sell goods for a
commission (also called factorage) and who is
entrusted by the principal with the possession of
goods to be sold, and usually selling in his own
name. He may act in his own name or in that of
the principal.
Need
not
have
possession of the
goods
or
the
Commission agent
FOR
Maintains
relations
with the thing, the
buyer and the seller
Has
custody
possession of
things to be sold
Broker
Has no custody of the
thing to be disposed
of, only acts as
intermediary between
seller and buyer
Maintains no relations
with things to be
sold/bought
RESPONSIBILITY
RECEIVED
PAGE 339
UP LAW BOC
CIVIL LAW
WITH
SEPARATE
CONTRACTS
PRINCIPAL AND AGENT
RATIFICATION
Obligations of the
Principal
IN GENERAL
In addition to his duties specified under the
contract itself, the principal is under obligation
to deal fairly and in good faith with his agent,
who owes the same to his principal.
PAGE 340
CIVIL LAW
UP LAW BOC
NECESSARY FUNDS
COMPENSATION OF BROKER
OBLIGATION FOR
COMPENSATION OF AGENT
Art. 1875. Agency is presumed to be for a
compensation, unless there is proof to the
contrary.
AMOUNT
PAGE 341
UP LAW BOC
IS
CIVIL LAW
REVOCATION BY PRINCIPAL
Agency is extinguished:
(1) By its revocation;
(2) By the withdrawal of the agent;
(3) By the death, civil interdiction, insanity or
insolvency of the principal or of the agent;
(4) By the dissolution of the firm or corporation
which entrusted or accepted the agency;
(5) By the accomplishment of the object or
purpose of the agency;
(6) By the expiration of the period for which the
agency was constituted [Art. 1919].
IN GENERAL
Modes of Extinguishment
NOT
DAMAGES
Art. 1913. The principal must also indemnify the
agent for all the damages which the execution
of the agency may have caused the latter,
without fault or negligence or his part.
MULTIPLE PRINCIPALS
If there are two or more principals who
appointed the agent for a common transaction
or undertaking, they shall be solidarily liable for
all the consequences of the agency [Art. 1915].
Requisites:
(1) There are two or more principals;
(2) The principals have all concurred in the
appointment of the same agent; and
PAGE 342
UP LAW BOC
CIVIL LAW
IN
WITHDRAWAL BY AGENT
EFFECT
OF
REVOCATION
RELATION TO THIRD PARTIES
MANNER
Revocation may be express or implied.
There is express revocation when the principal
clearly and directly makes a cancellation of the
authority of the agent orally or in writing.
There is implied revocation in the following
cases:
(1) The appointment of a new agent for the
same business or transaction revokes the
previous agency from the day on which
notice thereof was given to the former
agent, without prejudice to the requirement
of notice to third persons [Art. 1923].
(2) The agency is revoked if the principal
directly manages the business entrusted to
the agent, dealing directly with third
persons [Art. 1924].
(3) A general power of attorney is revoked by a
special one granted to another agent, as
regards the special matter involved in the
latter [Art. 1926].
PAGE 343
UP LAW BOC
OR
CIVIL LAW
EXPIRATION OF TERM
DEATH OF AGENT
If the agent dies, his heirs must:
(1) Notify the principal thereof; and
(2) In the meantime adopt such measures as
the circumstances may demand in the
interest of the latter [Art. 1932].
ACCOMPLISHMENT OF OBJECT
OR PURPOSE
FIRM
DISSOLUTION OF
CORPORATION
PAGE 344
[Type text]
[Type text]
PAGE 345
[Type text]
UP LAW BOC
Credit Transactions
OF
Essentially
[Art.1933]
CIVIL LAW
Contract to Loan
Mutuum
is
the
money or
consumable
to
Ordinarily
involves Involves
something
not other
consumable* [Art.1936] thing
Commodatum
Real Contract:
Consensual Contract:
perfected, not by mere perfected by mere
consent,
but
the consent
delivery of the contract
Contract of Loan
CREDIT TRANSACTIONS
SECURITY
CONTRACTS
TYPES OF
SECURITY
(1) Secured transactions those supported by a
collateral or an encumbrance of property
(2) Unsecured transactions those supported
only by a promise to pay or the personal
commitment of another such as a guarantor
or surety
Loan
CONTRACTS OF LOAN
(1) Commodatum - A contract where one party
delivers to another something not consumable
so that the latter may use the same for a certain
sum and return it [Art. 1933]
(2) Mutuum (Simple Loan)- A contract where
one party delivers to another money or other
consumable thing, upon the condition that the
same amount of the same kind and quality shall
be paid [Art. 1933]
CHARACTERISTICS OF A LOAN
PAGE 346
UP LAW BOC
Commodatum
Mutuum
CIVIL LAW
BAILOR
IN
Exceptions:
(a) Urgent need of the thing, during which
time he may demand its return or
temporary use [Art.1946]
(b) Precarium [Art.1947]
If duration of the contract has not been
stipulated
If use or purpose of the thing has not
been stipulated
If use of thing is merely tolerated by the
bailor
(c) Bailee commits an act of ingratitude
specified in Art. 765 [Art.1948]:
Commission of offenses against the
person, the honor, or the property of the
bailor, or of his wife or children under
his parental authority
Imputing to the bailor any criminal
offense, or any act involving moral
turpitude, even though he should prove
it, unless the crime or the act has been
committed against the bailee himself,
his wife, or children under his authority
Undue refusal to give the bailor support
when the bailee is legally or morally
bound to do so
OBLIGATIONS OF
COMMODATUM
KINDS OF COMMODATUM
CREDIT TRANSACTIONS
Lender
may
not
demand its return
before the lapse of the
term agreed upon
PAGE 347
UP LAW BOC
BAILEE
IN
CIVIL LAW
KINDS OF INTEREST
RIGHT OF RETENTION
CREDIT TRANSACTIONS
OBLIGATIONS OF
COMMODATUM
(1) Obligation to pay for the ordinary expenses
for the use and preservation of the thing
loaned [Art.1941]
(2) Obligation to take good care of the thing
with the diligence of a good father of a family
[Art.1163]
(3) Liability for loss, even if loss through
fortuitous event, under certain circumstances
[Art.1942]
(4) Liability for deterioration of thing loaned,
except
under
certain
circumstances
[Art.1943]
(5) Obligation to return the thing upon
expiration of term or upon demand in case of
urgent need [Art. 1946]
(6) Solidary obligation where there are 2 or
more bailees to whom a thing was loaned in
the same contract [Art.1945]
PAGE 348
UP LAW BOC
CIVIL LAW
CREDIT TRANSACTIONS
UP LAW BOC
ELEMENTS OF USURY
CIVIL LAW
Exceptions
1. Depositor was not aware of the danger;
2. Depositor was not expected to know the
dangerous character of the thing;
3. Depositor notified the depositary of
such dangerous character;
4. Depositary was aware of the danger
without advice from the depositor.
OBLIGATIONS OF DEPOSITOR
EXTINGUISHMENT
GENERAL CONCEPTS
CREDIT TRANSACTIONS
Deposit
A deposit is constituted from the moment a
person receives a thing belonging to another,
with the obligation of safely keeping it and of
returning the same. [Art. 1962]
OBJECT OF DEPOSIT
Art. 1966 provides that only movable things may
be the object of a deposit. However, Art. 2006
provides that movable as well as immovable
property may be the object of sequestration or
judicial deposit.
PRINCIPAL PURPOSE
Safekeeping of the thing; if NOT, there is NO
DEPOSIT but some other contract. [Art. 1962]
CONSIDERATION
KINDS OF DEPOSIT
(1) Extrajudicial
(a) Voluntary Obligation arises as a
consequence of contract
(b) Necessary Obligation arises as a
consequence of law or quasi-contract
(2) Judicial Obligation arises as a
consequence of a law allowing the issuance
of a judicial order constituting a deposit
PAGE 350
UP LAW BOC
LIABILITY
UNDER
CIVIL LAW
HOTEL-KEEPERS RIGHT TO
RETENTION
CREDIT TRANSACTIONS
OF
EXTENT
ART.1998
PAGE 351
UP LAW BOC
SEQUESTERED
CIVIL LAW
A surety is usually
bound
with
his
principal by the same
instrument, executed
at the same time, and
on
the
same
consideration. He is an
original promissor and
debtor
from
the
beginning, and is held,
ordinarily, to know
every default of his
principal.
An accessory promise
by which a person
binds
himself
for
another already bound,
and agrees with the
creditor to satisfy the
obligation if the debtor
does not
Surety
A guarantor is often
discharged by the mere
indulgence of the
creditor
to
the
principal, and is usually
not
liable
unless
notified of the default
of the principal
The
contract
of
guaranty
is
the
guarantor's
own
separate undertaking,
in which the principal
does not join. It is
usually entered into
before or after that of
the principal, and is
often supported on a
separate consideration
from that supporting
the contract of the
principal. The original
contract of his principal
is not his contract, and
he is not bound to take
notice of its nonperformance
A
collateral
undertaking to pay the
debt of another in case
the latter does not pay
the debt.
Guaranty
GUARANTY
DISTINGUISHED
FROM SURETYSHIP [ZOBEL,
CREDIT TRANSACTIONS
OF
DEPOSITARY
PROPERTY
A person is appointed by the court [Art. 2007]
with the obligations
(1) To take care of the property with the
diligence of a good father of the family. [Art.
2008]
(2) To continue in his responsibility until the
controversy which give rise thereto is ended
unless the court so orders. [Art. 2007]
APPLICABLE LAW
The law on judicial deposit is remedial or
procedural in nature.
Rules of Court shall govern matters not
provided for in the Civil Code. [Art. 2009]
SURETYSHIP
PAGE 352
CIVIL LAW
[ART. 2052(1)]
2050]
CREDIT TRANSACTIONS
Guaranty
UP LAW BOC
Surety
OF
A guarantor is the
insurer of the solvency
of the debtor and thus
binds himself to pay if
the principal is unable
to pay
EXTENT
NATURE AND
GUARANTY
A
GUARANTY
IS
GENERALLY
GRATUITOUS [ART. 2048]
General Rule: Guaranty is gratuitous
Exception: When there is a stipulation to the
contrary
[ART. 2049]
Exceptions:
(1) With her husbands consent, bind the
community or conjugal partnership property
(2) Without husbands consent, in cases
provided by law, such as when the guaranty
has redounded to the benefit of the family.
PAGE 353
UP LAW BOC
CIVIL LAW
Exceptions
(a) Interest, judicial costs, and attorneys fees as
part of damages may be recovered
creditors suing on a suretyship bond may
recover from the surety as part of their
damages, interest at the legal rate, judicial
costs, and attorneys fees when appropriate,
even without stipulation and even if the
surety would thereby become liable to pay
more than the total amount stipulated in the
bond.
CREDIT TRANSACTIONS
PAGE 354
UP LAW BOC
OF
CIVIL LAW
THE UNDERTAKING IS TO
CREDITOR, NOT THE DEBTOR
PRINCIPAL.
Strictissimi juris rule is applicable only to
accommodation surety.
THE
CREDIT TRANSACTIONS
CONTRACT OF GUARANTY IS
COVERED BY THE STATUTE OF
FRAUDS [SEE ART. 1403(2(B))]
EXTENT
NATURE AND
SURETYSHIP
PAGE 355
UP LAW BOC
CIVIL LAW
CREDIT TRANSACTIONS
Reasons:
(1) Compensated corporate sureties are
business associations organized for the
purpose of assuming classified risks in large
numbers, for profit and on an impersonal
basis.
(2) They are secured from all possible loss by
adequate counter-bonds or indemnity
agreements.
Such corporations are in fact insurers and in
determining their rights and liabilities, the rules
peculiar to suretyship do not apply.
The stipulation in the indemnity agreement
allowing the surety to recover even before it
paid the creditor is enforceable. In accordance
therewith, the surety may demand from the
indemnitors even before paying the creditors.
[Mercantile Insurance Company v. Ysmael, 169
SCRA 66, 1989]
EFFECT OF GUARANTY
EFFECTS OF GUARANTY BETWEEN
THE
GUARANTOR
AND
THE
CREDITOR
(1) THE GUARANTOR HAS THE RIGHT TO
BENEFIT FROM EXCUSSION/ EXHAUSTION
[2058]
The guarantor cannot be compelled to pay the
creditor unless the latter has:
(a) Exhausted all of the property of the debtor;
and
(b) Resorted to all the legal remedies against
the debtor.
Exceptions to the benefit of excussion [Art. 2059]
(a) As provided in Art. 2059:
(i) If the guarantor has expressly renounced
it.
(ii) If he has bound himself solidarily with the
debtor. Here, the liability assumed is that
of a surety. The guarantor becomes
primarily liable as a solidary co- debtor. In
effect, he renounces in the contract itself
the benefit of exhaustion.
(iii) In case of insolvency of the debtor
guarantor guarantees the solvency of the
debtor. If the debtor becomes insolvent,
the liability of the guarantor arises as the
PAGE 356
UP LAW BOC
CIVIL LAW
CREDIT TRANSACTIONS
2060]
2058, 2061]
PAGE 357
UP LAW BOC
CIVIL LAW
Art. 2066
Provides
for
the
protection before he
has paid but after he
has become liable
Art. 2071
Substantive Right
Preliminary remedy
EFFECTS
OF
GUARANTY
BETWEEN CO-GUARANTORS
AS
Provides
for
the
enforcement of the
guaranty/surety
against the debtor
after he has paid the
debt
CREDIT TRANSACTIONS
PAGE 358
CREDIT TRANSACTIONS
CIVIL LAW
UP LAW BOC
ART. 2073
QUALIFICATIONS
OF
PERSONAL
BONDSMAN [2082 IN RELATION TO ART.
Pledge
[ART. 2084]
[ART. 2083]
2056]
EXTINGUISHMENT OF
GUARANTY
PAGE 359
UP LAW BOC
CIVIL LAW
OBLIGATIONS OF PLEDGEE
CREDIT TRANSACTIONS
CHARACTERISTICS
(1) Real perfected upon delivery of thing
pledged
(2) Accessory cannot exist independently
(3) Unilateral obligation on the part of the
creditor to return the thing pledged upon the
fulfillment of the principal obligation
(4) Subsidiary obligation incurred does not
arise until the fulfillment of the secured
principal obligation
KINDS
(1) Voluntary or conventional Created by
agreement of parties
(2) Legal Created by operation of law
ESSENTIAL REQUISITES
Common to pledge and mortgage [Art. 2085]
(1) Constituted to secure the fulfillment of a
principal obligation.
(2) Pledgor or mortgagor must be the absolute
owner of the thing pledged or mortgaged.
(3) The persons constituting the pledge or
mortgage have the free disposal of their
property, and in the absence thereof, that
they be legally authorized for the purpose.
(4) Cannot exist without a valid obligation.
(5) Debtor retains the ownership of the thing
given as a security.
(6) When the principal obligation becomes due,
the thing pledged or mortgaged may be
alienated for the payment to the creditor.
[Art. 2087]
PAGE 360
UP LAW BOC
CIVIL LAW
CREDIT TRANSACTIONS
RIGHTS OF PLEDGOR
(1) Takes responsibility for the flaws of the thing
pledged [Art. 2101 in relation to Art. 1951.
(2) Cannot ask for the return of the thing
against the will of the creditor, unless and
until he has paid the debt and its interest,
with expenses in a proper case [Art. 2105].
(3) Subject to the right of the pledgee under
article 2108, pledgor is allowed to substitute
the thing which is in danger of destruction or
impairment without any fault on the part of
the pledgee with another thing of the same
kind and quality [Art. 2107].
(4) May require that the thing be deposited with
a 3rd person, if through the negligence or
willful act of the pledgee the thing is in
danger of being lost or impaired [Art. 2106].
The pledgee can temporarily entrust the
physical possession of the chattels pledged to
the pledgor without invalidating the pledge. The
pledgor is regarded as holding the pledged
property merely as trustee for the pledgee. The
type of delivery will depend upon the nature and
the peculiar circumstances of each case.
[Yuliongsiu v. PNB (1968)]
A pledgee cannot become the owner of, nor
appropriate to himself, the thing given in
pledge. If by the contract of pledge the pledgor
continues to be the owner of the thing pledged
during the pendency of the obligation, it stands
to reason that in case of loss of the property, the
loss should be borne by the pledgor. [PNB v.
Atendido (1954)]
PAGE 361
UP LAW BOC
EFFECT ON PLEDGE
CIVIL LAW
ELEMENTS
PACTUM COMMISSORIUM
CREDIT TRANSACTIONS
Pledge
PLEDGE AS DISTINGUISHED
FROM CHATTEL MORTGAGE
Delivery
is
required for the
validity of the
pledge
Not necessary;
Public document
is enough to bind
third persons
ESSENTIAL REQUISITES
EQUITABLE MORTGAGE
Necessary
for
validity of the
CM against third
persons
Delivery of
Personal
Property
Registratio
n in the
Chattel
Mortgage
Register
The excess goes
to
the
pledgee/creditor,
unless otherwise
stipulated
Creditor/
Creditor/
mortgagee can mortgagee is not
recover from the entitled
to
debtor/
recover
any
Right to
mortgagor,
deficiency after
Recover
except if covered the property is
Deficiency
by Recto Law
sold,
notwithstanding
contrary
stipulation
PAGE 362
UP LAW BOC
Real Mortgage
MORTGAGE
CIVIL LAW
TO 2090]
PRINCIPLE OF INDIVISIBILITY OF
PLEDGE/MORTGAGE [ARTS. 2089
KINDS
CREDIT TRANSACTIONS
2124]
(1) Immovables
(2) Alienable real rights over immovables.
Future property cannot be an object of
mortgage; however, a stipulation subjecting to
the mortgage improvements which the
mortgagor may subsequently acquire, install or
use in connection with real property already
mortgaged belonging to the mortgagor is valid.
CHARACTERISTICS
(1) As a general rule, the mortgagor retains
possession of the property. He may deliver
said property to the mortgagee without
altering the nature of the contract of
mortgage.
(2) It is not an essential requisite that the
principal of the credit bears interest, or that
the interest as compensation for the use of
the principal and the enjoyment of its fruits
be in the form of a certain percentage
thereof.
(3) Mortgage creates an encumbrance over the
property, but ownership of the property is not
parted with. It merely restricts the
mortgagors jus disponendi over the property.
The mortgagor may still sell the property,
and any stipulation to the contrary is void
[Art. 2130]
(4) Mortgage extends to the natural accessions,
to the improvements of growing fruits and
the rents or income NOT YET RECEIVED
when the obligation becomes DUE, including
indemnity from insurance, and/or amount
received from expropriation for public use
[Art. 2127]
(a) Applies only when the accessions and
accessories subsequently introduced
belongs to the mortgagor.
PAGE 363
UP LAW BOC
KINDS OF FORECLOSURE
1. Judicial Foreclosure
2. Extrajudicial Foreclosure
CIVIL LAW
JUDICIAL
FORECLOSURE
EXTRAJUDICIAL FORECLOSURE
No court intervention
Extrajudicial
Court intervenes
There is right of
redemption period
start from date of
registration
of
certificate of sale
Judicial
There is equity of
redemption period
starts from the finality
of the judgment until
order of confirmation
VS.
FORECLOSURE OF MORTGAGE
CREDIT TRANSACTIONS
PAGE 364
UP LAW BOC
Judicial
Decisions
appealable
Extrajudicial
CIVIL LAW
EXTRAJUDICIAL FORECLOSURE
NATURE
OF
JUDICIAL
FORECLOSURE PROCEEDINGS
CREDIT TRANSACTIONS
Special
power
of
attorney in favor of the
mortgage is required in
the contract
JUDICIAL FORECLOSURE
Rule 68, ROC:
(a) May be availed of by bringing an action in
the proper court which has jurisdiction over
the area wherein the real property involved
or a portion thereof is situated
(b) If the court finds the complaint to be wellfounded, it shall order the mortgagor to pay
the amount due with interest and other
charges within a period of not less than 90
days nor more than 120 days from the entry
of judgment
(c) If the mortgagor fails to pay at time directed,
the court, upon motion, shall order the
property to be sold to the highest bidder at a
public auction.
(d) Upon confirmation of the sale by the court,
also upon motion, it shall operate to divest
the rights of all parties to the action and to
vest their rights to the purchaser subject to
such rights of redemption as may be allowed
by law
(e) Before the confirmation, the court retains
control of the proceedings; execution on
judgment
(f) The proceeds of the sale shall be applied to
the payment of the:
(i) costs of the sale;
(ii) amount due the mortgagee;
(iii) claims of junior encumbrancers or
persons holding subsequent mortgages in
the order of their priority; and
(iv) the balance, if any shall be paid to the
mortgagor
(g)Sheriffs
certificate
is
executed,
acknowledged and recorded to complete the
foreclosure
PAGE 365
UP LAW BOC
CIVIL LAW
REDEMPTION
CREDIT TRANSACTIONS
NATURE OF POWER OF
FORECLOSURE BY EXTRAJUDICIAL
SALE
(1) Conferred for mortgagees protection.
(2) An ancillary stipulation.
(3) A prerogative of the mortgagee.
Note:
(a) Both should be distinguished from execution
sale governed by Rule 39, ROC.
(b) Foreclosure retroacts to the date of
registration of mortgage.
(c) A stipulation of upset price, or the minimum
price at which the property shall be sold to
become operative in the event of a
foreclosure sale at public auction, is null and
void.
PAGE 366
UP LAW BOC
CIVIL LAW
FROM
Personal property
Pledge
Kind
of Real property
property
to Retained
debtor
by
Real mortgage
Delivery of thing
pledged
Antichresis
Delivered
creditor
Creditor
Creditor does not
acquires
only have the right to
Right
to the right to receive fruits, but
the fruits receive fruits
a real right over
the property is
created
Possession
Antichresis
AS
DISTINGUISHED
OTHER CONTRACTS
CREDIT TRANSACTIONS
Antichresis
A real security transaction that arises by
contract, with the antichretic creditor acquiring
the right to receive the fruits of an immovable of
the antichretic debtor, and the obligation to
apply them to the payment of the interest, if
owing, and thereafter to the principal. [Art. 2132]
Payment of Creditor
is Creditor has no
taxes and generally
obligation to pay
charges
obliged to pay
CHARACTERISTICS
SPECIAL REQUISITES
(1) It can cover only the fruits of an immovable
property
(2) Delivery of the immovable is necessary for
the creditor to receive the fruits, not to make
the contract binding
(3) Amount of principal and interest must be
specified in writing; otherwise, the contract of
antichresis shall be void [NCC 2134]
(4) Express agreement that debtor will give
possession of the property to creditor and
that the latter will apply the fruits to the
interest, if any, then to the principal of his
credit
Note: The obligation to pay interest is not the
essence of the contract of antichresis; there
being nothing in the Code to show that
antichresis is only applicable to securing the
payment of interest-bearing loans. On the
contrary, antichresis is susceptible of
guaranteeing all kinds of obligations, pure or
conditional.
OBLIGATIONS OF ANTICHRETIC
CREDITOR
PAGE 367
UP LAW BOC
CIVIL LAW
FORMAL REQUISITES
VALIDITY OF CHATTEL
MORTGAGE
PROPERTY COVERED
OBLIGATIONS SECURED
CREDIT TRANSACTIONS
REMEDIES OF CREDITOR IN
CASE OF NON-PAYMENT OF
DEBT
(1) Action for specific performance
(2) Petition for the sale of the real property as in
a foreclosure of mortgage under Rule 68 of
the Rules of Court [NCC 2137]
(a) The parties, however, may agree on an
extrajudicial foreclosure in the same
manner as they are allowed in contracts
of mortgage and pledge Tavera v. El
Hogar Filipino, Inc. [1939]
(b) A stipulation authorizing the antichretic
creditor to appropriate the property upon
the non-payment of the debt within the
agreed period is void [NCC 2088]
Because of the right of the creditor to judicially
foreclose, antichresis is generally viewed as a
species of real estate mortgage, in which the
mortgagee retains possession of the collateral
and takes the fruits of the property in lieu of
interest on the debt. [Gomez-Somera]
Chattel Mortgage
CHATTEL MORTGAGE
A conditional sale of personal property as
security for the payment of a debt, or the
performance of some other obligation
specified therein, the condition being that the
sale shall be void upon the seller paying to
the purchaser a sum of money or doing some
other act named. If the condition is performed
according to its terms, the mortgage and sale
immediately become void, and the mortgagee
is thereby divested of his title. [Section 3, Act
1508]
It is a contract by virtue of which personal
property is recorded in the Chattel Mortgage
Register as a security for the performance of
an obligation. [Art. 2140]
CHARACTERISTICS
(1) It is an accessory contract because it secures
performance of a principal obligation
(2) It is a formal contract because it requires
registration in the Chattel Mortgage Register
PAGE 368
UP LAW BOC
OF
CIVIL LAW
REGISTRATION OF ASSIGNMENT OF
MORTGAGE NOT REQUIRED
CREDIT TRANSACTIONS
CHATTEL
REGISTRATION
MORTGAGE
PERIOD
There is substantial and sufficient compliance
with the law when registration is made by the
mortgagee before the mortgagor has complied
with his principal obligation, and no right of
innocent third persons is prejudiced.
TO
VENUE
Effect
Creates real rights which follows the chattel
It is an effective and binding notice to other
creditors
Registration gives the mortgagee symbolical
possession
FAILURE OF MORTGAGEE
DISCHARGE THE MORTGAGE
PAGE 369
UP LAW BOC
CIVIL LAW
OBLIGATIONS OF A GESTOR
Quasi-Contracts
CREDIT TRANSACTIONS
FORECLOSURE
The mortgagee, his executor, administrator or
assign may cause the mortgaged property or
any part thereof to be sold at a public auction by
a public officer:
(1) After 30 days from the time of condition
broken
(2) At a public place in the municipality where
the mortgagor resides, or where the property
is situated
(3) Provided at least 10 day-notice of the time,
place, and purpose of such sale has been
posted at 2 or more public places in such
municipality, and
(4) The mortgagee, his executor, administrator,
or assign shall notify the mortgagor or
person holding under him and the persons
holding subsequent mortgages of the time
and place of sale at least 10 days previous to
the sale:
(a) Either by notice in writing directed to him
or left at his abode, if within the
municipality, or
(b) Sent by mail if he does not reside in such
municipality
DISPOSITION OF PROCEEDS
The proceeds of the sale shall be applied to the
payment:
(1) Costs and expenses of keeping and sale
(2) Payment of the obligation secured by the
mortgage
(3) The residue shall be paid to persons holding
subsequent mortgages in their order
(4) The balance shall be paid to the mortgagor
or person holding under him on demand
PAGE 370
UP LAW BOC
CIVIL LAW
EXTINGUISHMENT OF
MANAGEMENT
EFFECT OF RATIFICATION
CREDIT TRANSACTIONS
UP LAW BOC
CIVIL LAW
PRESUMPTION OF PAYMENT BY
MISTAKE, DEFENSE
CREDIT TRANSACTIONS
LIABILITY OF PAYEE
If in bad faith, he shall be liable:
(1) For legal interest if a sum of money is
involved, or
(2) For the fruits received or which should have
been received if the thing produces fruits
AND
(3) For any loss or impairment of the thing for
any cause, and
(4) For damages to the person who delivered
the thing, until it is recovered. [Art. 2159]
If in good faith, he shall be liable:
(1) For the impairment or loss of the thing
certain and determinable or its accessories
and accessions insofar as he has thereby
been benefited.
(2) For the return of the price or assign the
action to collect the sum if he has alienated
the same. [Art. 2160]
PAGE 372
UP LAW BOC
CIVIL LAW
CLASSIFICATION OF CREDITS
CREDIT TRANSACTIONS
Concurrence and
Preference of Credits
Concurrence of credits implies possession by
two or more creditors of equal rights or
privileges over the same property or all of the
property of the debtor.
Preference of credits is the right held by a
creditor to be preferred in the payment of his
claim above others out of the debtors assets.
Preference is merely a method adopted to
determine and specify the order in which credits
should be paid, as opposed to a lien, which
creates a charge on a particular property. [DBP
v. NLRC (1990)]
PAGE 373
UP LAW BOC
CIVIL LAW
[ART. 2242]
CREDIT TRANSACTIONS
PAGE 374
UP LAW BOC
CIVIL LAW
CREDIT TRANSACTIONS
ORDINARY PREFERRED
CREDITS [ART. 2244]
With reference to other property, real and
personal, of the debtor, the following claims or
credits shall be preferred in the order named:
(1) Proper funeral expenses for the debtor, or
children under his or her parental authority
who have no property of their own, when
approved by the court;
(2) Credits for services rendered the insolvent by
employees, laborers, or household helpers
for one year preceding the commencement
of the proceedings in insolvency;
(3) Expenses during the last illness of the debtor
or of his or her spouse and children under his
or her parental authority, if they have no
property of their own;
(4) Compensation due the laborers or their
dependents under laws providing for
indemnity for damages in cases of labor
accident, or illness resulting from the nature
of the employment;
(5) Credits and advancements made to the
debtor for support of himself or herself, and
family, during the last year preceding the
insolvency;
(6) Support during the insolvency proceedings,
and for three months thereafter;
(7) Fines and civil indemnification arising from a
criminal offense;
(8) Legal expenses, and expenses incurred in
the administration of the insolvent's estate
for the common interest of 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;
PAGE 375
UP LAW BOC
CREDIT TRANSACTIONS
EXEMPT PROPERTY
(1) Present property
(a) Family home [NCC 152, 153 and 155]
(b) Right to receive support, as well as money
or property obtained by such support,
shall not be levied upon on attachment or
execution. [NCC 205]
(c) Rule 39, Sec. 13
(d) Sec 118, Public Land Act [CA 141, as
amended]
(2) Future property:
(a) A debtor who obtains a discharge from
his debts on account of insolvency, is not
liable for the unsatisfied claims of his
creditors with said property [Sec. 68 and
69, Insolvency Law, Act 1956]
(3) Property in custodia legis and of public
dominion
PAGE 376
CIVIL LAW
PAGE 377
UP LAW BOC
Land Title
CONCEPT
CIVIL LAW
NATURE OF LAND
REGISTRATION
CONCEPT
Land Registration
Deed
CONCEPT
A written instrument executed in accordance
with law, wherein a person grants or conveys to
another
certain
land,
tenements
or
hereditaments.
Grantor
Grantee
Words of Grant
Description of the property involved
Signature of the grantor
At least 2 witnesses
Notarial acknowledgment
ELEMENTS OF A DEED
(a)
(b)
(c)
(d)
(e)
(f)
(g)
Estate
CONCEPT
An estate, strictly speaking, represents the
nature, extent, degree, and quantity of a
persons interest in land.
TYPES OF ESTATE
(1) Freehold Estate Indicates title of
ownership
(a) Fee Simple An absolute title in
perpetuity; Title to land is conferred
upon a man and his heirs absolutely
and without any limitation imposed
upon the estate
(b) Fee Tail One designed to pass title
from grantee to his heirs, in the intent of
the grantor being to keep the property
in the grantees line of issue
(c) Life Estate One held for the duration
of the life of the grantee; In some cases,
it may terminate earlier as by forfeiture
PAGE 378
UP LAW BOC
LAWS IMPLEMENTING
REGISTRATION
(1)
(2)
(3)
(4)
(5)
(6)
Private or public
Alienable or inalienable
Registered or unregistered
Registrable or Non-registrable
CIVIL LAW
CONCEPT
Torrens System
Those found in the Civil Code dealing with nonregistrable properties (e.g. property of public
dominion)
NON-REGISTRABLE LANDS
REGISTRABLE LANDS
(1)
(2)
(3)
(4)
CLASSIFICATION OF LANDS
OBJECT OF REGISTRATION
LAND
LAND
PURPOSES
OF
REGISTRATION
(1) To notify and protect the interests of
strangers to a given transaction, who may
be ignorant thereof [Sapto, et al. v. Fabiana
(1958)]
(2) As held in Legarda v. Saleeby (1915)
(a) To quiet title to the land and to stop
forever any question as to the legality of
said title
(b) To relieve the land of unknown claims
(c) To guarantee the integrity of land titles
and to protect their indefeasibility once
the claim of ownership is established
and recognized
(d) To give every registered owner complete
peace of mind
(e) To issue a certificate of title to the
owner which shall be the best evidence
of his ownership of the land
(f) To avoid conflicts of title in and to real
estate and to facilitate transactions
(3) As held in Capitol Subdivisions, Inc. v.
Province of Negros Occidental (1963)
(a) To avoid possible conflicts of title in and
to real property, and
PAGE 379
UP LAW BOC
HISTORY
OF
CIVIL LAW
THE
CERTIFICATE OF TITLE
ADMINISTRATION
TORRENS SYSTEM
PURPOSE
The real purpose of the Torrens system of
registration is to quiet title to land; to put a stop
forever to any question of the legality of the
PAGE 380
UP LAW BOC
CIVIL LAW
NOTE:
Under the Torrens system, registration only
gives validity to the transaction or creates a lien
upon the land. It merely confirms, but does not
confer, ownership [Lu v. Manipon, (2002)]
Exceptions:
(1) If previous valid title of the same land
exists
(2) When the land covered is not capable of
registration
(3) When acquisition of certificate is
attended by fraud
Exceptions:
(a) Those claims noted on the certificate
(b) Liens, claims, or rights arising or
existing under the laws and the
Constitution, which are not by law
required to appear on record in the
Register in order to be valid
(c) Unpaid real estate taxes levied and
assessed within 2 years immediately
preceding the acquisition of any right
over the land by an innocent purchaser
for value
PROBATIVE VALUE
A Torrens Certificate of Title is valid and
enforceable against the whole world. It may be
received in evidence in all courts of the
Philippines, and shall be conclusive as to all
matters contained therein, principally the
identity of the owner of the covered land
thereby and identity of the land.
A Torrens title, once registered, cannot be
defeated, even by adverse, open and notorious
possession. A registered title under the Torrens
system cannot be defeated by prescription. The
title, once registered, is notice to the whole
world. All persons must take notice. No one can
plead ignorance of the registration. [Egao vs. CA
(1989)]
EFFECT OF REGISTRATION
UNDER THE TORRENS SYSTEM
(1) Land is placed under the operation of the
Torrens system
(2) Claims and liens of whatever character
existing against the land prior to the
issuance of the certificate of title are cut off
by such certificate and the certificate so
issued binds the whole world, including the
government
General rule: It is an elemental rule that a
decree of registration bars all claims and
rights which arose or may have existed prior
to the decree of registration. By the
issuance of the decree, the land is bound
and title thereto quieted, subject only to
certain exceptions under the property
registration decree. [Heirs of Alejandra Delfin
v. Avelina Rabadon (2013)]
PAGE 381
UP LAW BOC
EFFECT OF NONREGISTRATION
CIVIL LAW
EFFECTS
CONCEPT
Regalian Doctrine
LACHES
PAGE 382
UP LAW BOC
ANCESTRAL
INDIVIDUALS
CONSTITUTIONAL
AND LIMITATIONS
CIVIL LAW
KRIVENKO DOCTRINE
REQUIREMENTS
Citizenship Requirement
OF
CERTIFICATE
DOMAIN TITLE
PAGE 383
UP LAW BOC
CIVIL LAW
Subsequent Registration
ORIGINAL
(1) Voluntary by filing with the proper court
under:
(a) PD 1529, Property Registration Decree
(b) CA 141, Public Land Act
(c) RA 8371, IPRA
(2) Involuntary as in Cadastral Proceedings
This is compulsory registration initiated by
the government to adjudicate ownership
of the land
KINDS
OF
REGISTRATION
Original Registration
CONCEPT
Original Registration
CORPORATION SOLE
Exceptions:
(1) Aliens by way of hereditary succession
(2) Natural born citizens who have lost their
citizenship- limited to 5,000 sq. m. for
urban land and 3 hectares for rural land [RA
No. 7042 as amended by RA No. 8179]
(3) Aliens, although disqualified to acquire
lands of public domain, may lease private
land for a reasonable period provided, that
such lease does not amount to a virtual
transfer of ownership. They may also be
given an option to buy property on the
condition that he is granted Philippine
citizenship. [Llantino v Co liong Chong (GR
No. 29663)]
(4) Lands acquired by an American citizen prior
the
proclamation
of
Philippine
Independence on July 4, 1946 but after the
passage of the 1935 Constitution may be
registered, based on the ordinance
appended to the 1935 Constitution [Moss v
Director of Lands (GR No. L-27170)]
(5) Land sold to an alien which is now in the
hands of a naturalized citizen can no longer
be annulled [De Castro v Tan (GR No. L31956)]. The litigated property is now in the
hands of a naturalized Filipino. It is no
longer owned by a disqualified vendee. The
purpose of the prohibition ceases to be
applicable. [Barsobia v Cuenco (GR No. L33048)]
CORPORATIONS
Private corporations may not hold alienable
lands of the public domain except by lease for a
period not exceeding twenty-five years,
renewable for not more than twenty-five years,
and not to exceed one thousand hectares in
area. (Art. XII, Sec. 3, Constitution)
LIMITATIONS TO OWNERSHIP OF
LANDS
(1) For private lands
(a) At least 60% Filipino [Art. XII, Sec. 7,
Constitution]
(b) Restricted as to extent reasonably
necessary to enable it to carry out the
purpose for which it was created
(c) If engaged in agriculture, it is restricted
to 1,024 hectares
PAGE 384
UP LAW BOC
CIVIL LAW
WHERE TO FILE
PAGE 385
UP LAW BOC
CIVIL LAW
PROCEDURE IN ORDINARY
LAND REGISTRATION
STEP 1: Survey of the land by the Bureau of
Lands or a duly registered private surveyor
Note: No plan of such survey, whether it be
original or subdivision, may be admitted in land
registration proceedings until approved by the
Director of lands [Sec. 1858, Administrative
Code]
STEP 2: Filing of application for registration by
the applicant:
(1) Form of the application
(a) In writing
(b) Signed by the applicant/s or person
duly authorized in his behalf
(c) Sworn before any officer authorized to
administer oath for the province or city
where the application was actually
signed
(d) Application is presented in duplicate
(2) Contents of the application:
(a) A description of the land
(b) The citizenship and civil status of the
applicant, whether single or married,
and, if married, the name of the wife or
husband, and, if the marriage has been
legally dissolved, when and how the
marriage relation terminated. It shall
also state
(c) The full names and addresses of all
occupants of the land and those of the
adjoining owners, if known, and, if not
known, it shall state the extent of the
search to find them.
(d) Whether the property is conjugal,
paraphernal or exclusively owned by the
applicant.
(3) Documents to accompany the application
(from Regulations in Ordinary Land
Registration Cases)
(a) Tracing-cloth plan duly approved by the
Director of Lands, together with two
blueprint or photographic copies
thereof;
(b) Three copies of the corresponding
technical descriptions;
(c) Three copies of the surveyors
certificate;
PAGE 386
UP LAW BOC
CIVIL LAW
PAGE 387
UP LAW BOC
CIVIL LAW
PAGE 388
UP LAW BOC
CIVIL LAW
PAGE 389
UP LAW BOC
IN
EVIDENCE NECESSARY
PROOFS NECESSARY
REGISTRATION
(1)
(2)
(3)
(4)
CIVIL LAW
REVERSION
LAND
REMEDIES
An aggrieved party in a registration proceeding
may avail himself of the following remedies:
(1) Motion for New Trial (see Rule 37, ROC)
(2) Appeal
(3) Relief from Judgment (see Rule 38, ROC)
(4) Annulment of Judgment (see Rule 47, ROC)
(5) Reconveyance
(6) Recovery of Damages
(7) Reversion
(8) Review of Decree of Registration
PAGE 390
UP LAW BOC
CIVIL LAW
PAGE 391
UP LAW BOC
CIVIL LAW
INDIVIDUALS
Judicial Confirmation of
Imperfect or Incomplete
Titles
CONCEPT
No title or right to, or equity in, any lands of the
public domain may be acquired by prescription
or by adverse possession or occupancy except as
expressly provided by law. [CA 141, Sec 57]
The Public Land Act recognizes the concept of
ownership under the civil law. This ownership is
based on adverse possession and the right of
acquisition is governed by the Chapter on
judicial confirmation of imperfect or incomplete
titles.
WHEN APPLICABLE
PAGE 392
UP LAW BOC
CORPORATIONS
CIVIL LAW
EVIDENCE
NECESSARY
TO
SUBSTANTIATE APPLICATION
SCOPE OF APPLICATION
RA 9176 also limited the area subject of the
application to 12 hectares. Prior to RA 9176, the
maximum area applied for was 144 hectares.
JUDICIAL
PROCEDURE
IN
CONFIRMATION
PAGE 393
CIVIL LAW
Cadastral Registration
STEP 2: Director of lands shall make a cadastral
survey
UP LAW BOC
CONCEPT
STEP 3: Director of Lands gives notice to
interested persons
Contents of the Notice:
(1) Day on which the survey will begin
(2) Full and accurate description of the lands to
be surveyed
STEP 4: Publication of notice
(1) Published once in the Official Gazette
(2) A copy of the notice in English or the
national language shall be posted in a
conspicuous place on the bulletin board of
the municipal building of the municipality in
which the lands or any portion thereof is
situated
Compulsory
Cadastral Registration
PROCEDURE IN CADASTRAL
REGISTRATION [Sec. 35 and 36,
PD 1529]
STEP 1: Determination of the President that
public interest requires title to unregistered
lands be settled and adjudicated. President
PAGE 394
UP LAW BOC
CIVIL LAW
DISALLOWANCE OF
REOPENING CADASTRAL
CASES
RA 931, effective June 20, 1953 for 5 years,
authorizing the reopening of cadastral cases
under certain conditions and which had been
extended until Dec. 31, 1968, is no longer in
force.
Courts are thus without jurisdiction or authority
to reopen a cadastral proceeding since Dec. 31,
1968. [Aquino citing Republic v. Estenzo (1988)]
Subsequent Registration
CONCEPT
Subsequent registration is a proceeding where
incidental matters AFTER original registration
may be brought before the land registration
court by way of motion or petition filed by the
registered owner or a party in interest
PAGE 395
UP LAW BOC
Involuntary Dealings
CIVIL LAW
Voluntary Dealings
AFP Mutual Benefit
Association
vs.
Santiago (2008): Entry
of the attachment in
the books is sufficient
notice to all persons.
Hence, the fact that the
deed of sale was
already annotated is of
no moment with regard
to third persons. The
preference created by
the levy on attachment
is not diminished by
the
subsequent
registration of the deed
of sale.
VOLUNTARY DEALINGS
PROCESS OF REGISTRATION
VOLUNTARY
INSTRUMENTS
GENERAL [Sec. 55, PD 1529]
OF
IN
Involuntary Dealings
An innocent purchaser
for value of registered
land becomes the
registered owner the
moment he presents
and files a duly
notarized and valid
deed of sale and the
same is entered in the
day book and at the
same
time
he
surrenders or presents
the owners duplicate
certificate
of
title
covering the land sold
and
pays
the
registration fees.
Dir. Of Lands vs. Reyes
(1976): Entry in the day
book is sufficient notice
to all persons of an
adverse claim without
the
same
being
annotated at the back
of the certificate of title
PAGE 396
UP LAW BOC
(2)
(3)
(4)
(5)
OF
CIVIL LAW
MORTGAGES
REGISTRATION
IF
THERE
ARE
SUBSISTING
ENCUMBRANCES AND ANNOTATIONS
They shall be carried over in the new certificate
or certificates; except when they have been
simultaneously discharged.
PROCESS OF REGISTRATION OF
DEALINGS LESS THAN OWNERSHIP
[Sec. 54, PD 1529]
*Note: If an instrument does not divest
ownership or title from owner or from transferee
of the registered owners, then no new certificate
shall be entered or issued.
(1) Filing of the instrument with the Register of
Deeds
(2) A brief memorandum thereof is made:
(a) On the certificate of title by the Register
of Deeds and signed by him, and
(b) On the owners duplicate
Cancellation or extinguishment of such interests
shall be registered in the same manner.
PAGE 397
UP LAW BOC
POWERS
OF
CIVIL LAW
REGISTRATION OF ATTACHMENT
OF
REGISTRATION
Attachment is a writ issued at the institution or
during progress of an action commanding the
sheriff to attach the property, rights, credits or
effects of the defendant to satisfy demands of
the plaintiff.
EFFECT
OF
REGISTRATION
OF
ATTACHMENT
(1) Creates real right
(2) Has priority over execution sale
(3) But between 2 attachments one that is
earlier in registration is preferred
PROCESS OF REGISTRATION
(1) Copy of writ in order to preserve any lien,
right or attachment upon registered land
shall be filed with the Register of Deeds
where the land lies, containing number of
certificate of title of land to be affected or
description of land (PD 1529, Sec 69)
(2) Register of Deeds to index attachment in
names of both plaintiff & defendant or
name of person whom property is held or in
whose name stands in the records
(a) If duplicate of certificate of title is not
presented:
(i) Register of Deeds shall within 36
hours send notice to registered
owner by mail stating that there has
been registration & requesting him
to produce duplicate so that
memorandum be made
(ii) If owner neglects or refuses
Register of Deeds shall report
matter to court.
(b) Court after notice shall enter an order to
owner to surrender certificate at time &
place to be named therein.
(3) Although notice of attachment is not noted
in duplicate, notation in book of entry of
Register of Deeds produces effect of
registration already
KINDS
(1) Preliminary
(2) Garnishment
(3) Levy on execution
REGISTRATION OF TRUSTS
Registration is by memorandum:
(1) A memorandum by the words in trust or
upon condition or other apt words is made
if a deed or other instrument is filed in order
to:
(a) Transfer registered land in trust, or
upon any equitable condition or
limitation expressed therein, or
(b) Create or declare a trust or other
equitable interests in such land without
transfer [Sec. 65, PD 1529]
(2) A memorandum by the words with power
to sell, or power to mortgage or other apt
words is made when:
The instrument creating or declaring a trust
or other equitable interest contains an
express power to sell, mortgage, or deal
with the land in any manner
However, if an implied or constructive trust
is claimed, person claiming such must
execute a sworn statement thereof with the
Register of Deeds, containing a description
of the land, the name of the registered
owner and a reference to the number of the
certificate of title. Such claim shall not
affect the title of a purchaser for value and
in good faith before its registration. [Sec. 68,
PD 1529]
INVOLUNTARY DEALINGS
The following involuntary dealings affecting
registered land must be registered:
(1) Attachments [Sec. 69, PD 1529]
(2) Sale on execution or for taxes or for any
assessment [Sec. 74, PD 1529]
(3) Adverse claim [Sec. 70, PD 1529]
(4) Notice of lis pendens [Sec. 76, PD 1529]
PAGE 398
UP LAW BOC
OF
CIVIL LAW
NOTICE
LIS
PROCESS
OF
REGISTRATION:
By
Memorandum or Notice stating
(1) The institution of the action or proceeding
(2) The court wherein the same is pending
(3) The date of the institution of the action
(4) Reference to the number of the certificate of
title
REGISTRATION
PENDENS
PAGE 399
UP LAW BOC
CIVIL LAW
CONCEPT
Non-Registrable
Properties
EFFECT OF REGISTRATION
(1) Impossibility of alienating the property in
dispute during the pendency of the suit
may be alienated but purchaser is subject to
final outcome of pending suit
(2) Register of Deeds is duty bound to carry
over notice of lis pendens on all new titles to
be issued
PAGE 400
UP LAW BOC
CIVIL LAW
PAGE 401
UP LAW BOC
CIVIL LAW
IN
INVOLUNTARY DEALINGS
UNREGISTERED LANDS
PROCESS OF REGISTRATION
Dealings with
Unregistered Lands
TRANSACTIONS
UNREGISTERED
EFFECTS OF
COVERING
LAND
(1) As between the parties The contract is
binding and valid even if not registered
(2) As among third persons There must be
registration for the transaction to be
binding against third persons
PAGE 402
PAGE 403
UP LAW BOC
TORTS
Principles
ABUSE OF RIGHT
CIVIL LAW
LEGAL RIGHT
CASE
DOCTRINE
AND INJURY
The dismissal
itself was not When a right is
illegal but it exercised in a
was
the manner which
manner
of does
not
dismissal
conform with
which
was the norms in
Globe vs. CA
deemed
in NCC 19, and
(1989):
violation
of results
in
Article 19, as damage
to
such
was another,
a
based
on legal wrong is
unfounded
thereby
accusations of committed.
dishonesty.
The conscious
The conscious
indifference of
indifference of
a person to the
the school in
rights
or
not informing
welfare of the
University
of its
student
others
who
the East vs. that he could
may
be
Jader (2000):
not graduate
affected by his
formed
the
act or omission
basis for the
can support a
award
of
claim
for
damages.
damages.
Article
19,
known
to
contain what is
commonly
Ruby
Lims
referred to as
throwing out
the principle of
of complainant
abuse
of
Reyes, as a
rights, is not a
gatecrasher in
panacea for all
a private party,
human hurts
was merely in
and
social
Nikko
Hotel exercise of her
grievances.
Manila Garden duties
as
The object of
vs.
Reyes Executive
this article is to
(2005)
Secretary
of
set
certain
the
hotel
standards
where
the
which must be
party was held,
observed not
and did not
only in the
constitute
a
exercise
of
violation
of
ones
rights
Article 19.
but also in the
performance
of ones duties.
The standards
in NCC 19 are
implemented
by NCC 21.
DOCTRINE
Elements:
(1) There is a legal right or duty;
(2) Which is exercised in bad faith;
(3) For the sole intent of prejudicing or injuring
another.
LEGAL RIGHT
CASE
AND INJURY
The transfer
of credit from
Shell
Philippines to
Shell
USA
was deemed a
violation
of
Velayo
vs. NCC 21 as it
Shell (1959)
allowed Shell
to
attach
properties of
their creditor
CALI to the
prejudice of
its
other
creditors.
PAGE 404
UP LAW BOC
CIVIL LAW
MALICIOUS PROSECUTION
PAGE 405
UP LAW BOC
CIVIL LAW
SCOPE OF LIABILITY
The indemnity does not include unrealized
profits of the injured party, because the
defendants enrichment is the limit of his
liability.
BASIS OF LIABILITY
Equity. An involuntary act, because of its
character, cannot generally create an
obligation; but when by such act its author has
been enriched, it is only just that he should
indemnify for the damages caused to the extent
of this enrichment.
Requisites:
(1) That the defendant has been enriched;
(2) That the plaintiff has suffered a loss;
(3) That the enrichment of the defendant is
without just or legal ground; and
(4) That the plaintiff has no other action based
on contract, crime or quasi-delict.
PUBLIC HUMILIATION
It is against morals, good customs and public
policy to humiliate, embarrass and degrade the
dignity of a person. Everyone must respect the
dignity, personality, privacy and peace of mind
of his neighbors and other persons [Art.icle 26,
Civil Code). [Grand Union vs. Espino (1979)]
UNJUSTIFIED DISMISSAL
The right of an employer to dismiss an
employee is not to be confused with the manner
in which this right is to be exercised.
When the manner in which the company
exercised its right to dismiss was abusive,
oppressive and malicious, it is liable for
damages.
UNJUST ENRICHMENT
Art. 22. Every person who through an act of
performance by another, or any other means,
acquires or comes into possession of something at
the expense of the latter without just or legal
ground, shall return the same to him.
Art. 23. Even when an act or event causing
damage to anothers property was not due to the
fault or negligence of the defendant, the latter
shall be liable for indemnity if through the act or
event he was benefited
Art. 2142. Certain lawful, voluntary and unilateral
acts give rise to the juridical relation of quasicontract to the end that no one shall be unjustly
enriched or benefited at the expense of another.
Art. 2143. The provisions for quasi contracts in this
Chapter do not exclude other quasi-contracts
which may come within the purview of the
preceding article.
PAGE 406
UP LAW BOC
Classification of Torts
CIVIL LAW
The Tortfeasor
ACCORDING TO MANNER OF
COMMISSION
NEGLIGENT TORT
A negligent tort consists in the failure to act
according to the standard of diligence required
under the attendant circumstances. It is a
voluntary act or omission which results in injury
to others, without intending to cause the same.
INTENTIONAL TORT
An intentional tort is perpetrated by one who
intends to do that which the law has declared to
be wrong. It is conduct where the actor desires
to cause the consequences of the act, or that he
believes
that
the
consequences
are
substantially certain to result therefrom.
Note: Article 2176 where it refers to fault or
negligence covers not only acts not
punishable by law but also acts criminal in
character, whether intentional and voluntary or
negligent. (Elcano vs. Hill [1977])
STRICT LIABILITY
One is liable independent of fault or negligence.
It only requires proof of a certain set of facts.
Liability here is based on the breach of an
absolute duty to make something safe. It most
often applies to ultra-hazardous activities or in
product liability cases. It is also known as
absolute liability or liability without fault.
Strict liability is imposed by articles 1314, 1711,
1712, 1723, 2183, 2187, 2189, 2190, 2191, 2192,
2193.
ACCORDING TO SCOPE
GENERAL
SPECIFIC
PAGE 407
UP LAW BOC
ACTUAL
CIVIL LAW
Meaning of Minority
Par. 2 and 3 of Art. 2180 speak of minors.
Minors here refer to those who are below 21
years of age, NOT below 18 years. The law
reducing the majority age from 21 to 18 years
old did not amend these pars.
Basis of Liability
It is based on the presumption of failure on their
part to properly exercise their parental authority
for the good education of their children and
exert adequate vigilance over them.
THE
LIABILITY
OF
TORTFEASOR
The author of the act is not exempted from
personal liability. He may be sued alone or with
the person responsible for him.
2 Requisites According to Chironi:
(1) The duty of supervision;
(2) The possibility of making such supervision
effective.
PRESUMPTION OF NEGLIGENCE ON
PERSONS
INDIRECTLY
RESPONSIBLE
Liability arises by virtue of a presumption juris
tantum of negligence on the part of the persons
made responsible under the article, derived from
their failure to exercise due care and vigilance
over the acts of the subordinates to prevent
them from causing damage.
The basis of this vicarious, although primary,
liability is, as in Article 2176, fault or negligence,
which is presumed from that which
accompanied the causative act or omission. The
presumption is merely prima facie and may
therefore be rebutted. [Tamargo vs. CA (1992)]
NATURE OF LIABILITY
PAGE 408
UP LAW BOC
CIVIL LAW
Liability of guardians
Guardians are liable for damages caused by the
minors or incapacitated persons who are under
their authority and live in their company. [Art.
2180, par. 3]
The liability of guardians with respect to their
wards is governed by the same rule as in the
liability of parents with respect to their
children below 21 years and who live with
them.
Incompetent includes those:
(1) suffering the penalty of civil interdiction,
(2) prodigals,
GUARDIANS
Parental
authority
over
foundlings,
abandoned, neglected or abused and other
similarly situated children
In case of foundlings, abandoned, neglected or
abused children and other children similarly
situated, parental authority shall be entrusted in
summary judicial proceedings to heads of
children's homes, orphanages and similar
institutions duly accredited by the proper
government agency. [Art. 217, FC]
Adopted Children
Judicially adopted children are considered
legitimate children of their adopting parents.
Thus, adopters are civilly liable for their
tortious/ criminal acts if the children live with
them and are below 21 years of age.
Illegitimate Children
Responsibility is with the mother whom the law
vests with parental authority.
Reason for Vicarious Liability
The civil liability which the law imposes upon
the father and, in case of his death or incapacity,
the mother, for any damages that may be
caused by the minor children who live with
them, is obvious. This is a necessary
consequence of the parental authority they
exercise over them which imposes upon the
parents the duty of supporting them, keeping
them in their company, educating them in
proportion to their means, while, on the other
hand, gives them the right to correct and
punish them in moderation. [Exconde vs.
Capuno (1957)]
The basis of parental authority for the torts of a
minor child is the relationship existing between
the parents and the minor child living with them
and over whom, the law presumes, the parents
exercise supervision and control. To hold that
parental authority had been retroactively
lodged in the adoptive parents so as to burden
them with the liability for a tortious act that they
could not have foreseen and prevented would
be unfair.
Parental liability is, in other words, anchored
upon parental authority coupled with presumed
parental dereliction in the discharge of the
duties accompanying such authority. The
parental dereliction is, of course, only presumed
and the presumption can be overturned under
Article 2180 of the Civil Code by proof that the
PAGE 409
UP LAW BOC
Requisites for
liability to
attach
CIVIL LAW
Requisites for
liability to
attach
be
If
the
School
tortfeasor is a Must
(generally not
stranger, it is below 18
held liable)
liable
for
breach
of
contract since
the school has
the implied
duty to its
students to
maintain
peace
and
order within
its premises.
(PSBA vs. CA
[1992])
SCHOOL,
TEACHERS
AND
ADMINISTRATORS
Teachers or heads of establishments of arts and
trades shall be liable for damages caused by
their pupils and students or apprentices, so long
as they remain in their custody. [Art. 2180, par.
7]
Who are liable
be
Custody
regardless of
the age
Teacher-inPupils
and
charge (the
students
one
Pupils
and remain
in
designated to students
teachers
exercise
custody
supervision
regardless of
over students)
the age
Head
of
establishment
of arts and Apprentices
trades
If
the
tortfeasor is a
School
student of the Must
(generally not
school [Art. below 18
held liable)
218 FC]
PAGE 410
CIVIL LAW
UP LAW BOC
For whose
acts
OWNERS
AND
MANAGERS
OF
ESTABLISHMENTS AND ENTERPRISES
The owners and managers of an establishment
or enterprise are likewise responsible for
damages caused by their employees in the
service of the branches in which the latter are
employed or on the occasion of their functions.
[Art. 2180, par. 4]
Who are liable
Owners and
managers of
Their
an
employees
establishment
or enterprise
Requisites for
liability to attach
The
damage
was caused in
the service of
the branches in
which
the
employees are
employed
-ORThe
damage
was caused on
the occasion of
their functions
PAGE 411
UP LAW BOC
Meaning of employer
CIVIL LAW
Presumption of negligence
The presentation of proof of the negligence of
its employee gives rise to the presumption that
the defendant employer did not exercise the
diligence of a good father of a family in the
selection and supervision of its employees.
Basis of liability
Employers negligence in:
(1) The selection of their employees (culpa in
eligiendo); and
(2) The supervision over their employees (culpa
in vigilando).
PAGE 412
UP LAW BOC
CIVIL LAW
4th paragraph
Employers in
general,
whether or not
engaged
in
business
or
industry
5th paragraph
Liable
persons
Owners
and
managers of an
establishment or an
enterprise
Negligent acts
of employees
acting within
the scope of
their assigned
task
IN
DEFENSE
OF
DILIGENCE
SELECTION AND SUPERVISION
Negligent acts of
employees
committed either in
Covered acts the service of the
branches or on the
occasion of their
functions
PAGE 413
CIVIL LAW
UP LAW BOC
Exceptions:
(1) There is express legislative consent;
(2) The State filed the case (because here, it is
deemed to have waived its immunity).
THE STATE
The State may not be sued without its consent.
[Sec 3, Art XVI, 1987 Constitution]
PAGE 414
UP LAW BOC
CIVIL LAW
NATURE OF LIABILITY
DEFINITION OF JOINT
TORTFEASORS
JOINT TORTFEASORS
PAGE 415
UP LAW BOC
OF
CIVIL LAW
Intervening cause
If the intervening cause is one which in ordinary
human experience is reasonably to be
anticipated, or one which the defendant has
reason to anticipate under the particular
circumstances, the defendant may be negligent,
among other reasons, because of failure to
guard against it.
PROXIMATE
Proximate Cause
CONCEPT
CAUSE
In order that civil liability for negligence may
arise, there must be a direct causal connection
between the damage suffered by the plaintiff
and the act or omission of the defendant. In
other words, the act or omission of the
defendant must be the proximate cause of the
loss or damage of the plaintiff.
DEFINITION
Proximate cause that cause, which, in natural
and continuous sequence, unbroken by any
efficient intervening cause, produces the injury,
and without which the result would not have
occurred.
Proximate legal cause that acting first and
producing the injury, either immediately or by
setting other events in motion, all constituting a
natural and continuous chain of events, each
having a close causal connection with its
immediate predecessor, the final event in the
chain immediately effecting the injury as a
natural and probable result of the cause which
first acted, under such circumstances that the
person responsible for the first event should, as
an ordinary prudent and intelligent person, have
reasonable ground to expect at the moment of
his act or default that an injury to some person
might probably result therefrom. [Bataclan vs.
Medina (1957)]
Proximate cause is determined from the facts of
each case, upon a combined consideration of
logic, common sense, policy or precedent. [
Quezon City vs. Dacara (2005):]
DIFFERENTIATED FROM:
Remote cause
A prior and remote cause cannot be made the
basis of an action if such remote cause did
nothing more than furnish the condition or give
rise to the occasion by which the injury was
made possible, if there intervened between such
prior or remote cause and the injury a distinct,
successive, unrelated, and efficient cause of the
PAGE 416
UP LAW BOC
TESTS TO DETERMINE
PROXIMATE CAUSE
CAUSE IN FACT
LEGAL CAUSE
NATURAL
AND
CONSEQUENCES
CIVIL LAW
PROBABLE
CAUSE;
EFFECTIVENESS OF THE
BUT FOR RULE
Whether such negligent conduct is a cause
without which the injury would not have taken
place (sine qua non rule) or is the efficient cause
which set in motion the chain of circumstances
leading to the injury. [Bataclan vs. Medina,
supra]
FORESEEABILITY TEST
PROBABLE
NATURAL
AND
CONSEQUENCE TEST
OR
HINDSIGHT TEST
PAGE 417
UP LAW BOC
LAST
CLEAR
TO
CIVIL LAW
ACTS
OF
JOINT
Note:
If plaintiff is the proximate cause: NO
RECOVERY can be made.
INAPPLICABLE
TORTFEASORS
COVERS SUCCESSIVE
NEGLIGENCE
Elements:
(1) Plaintiffs own negligence puts himself in a
dangerous situation;
(2) Defendant saw or discovered, by exercising
reasonable care, the perilous position of
plaintiff;
(3) In due time to avoid injuring him
(4) Despite notice and imminent peril,
defendant failed to employ care to avoid
injury; and
(5) Injury of plaintiff resulted.
FORESEEABILITY
Anticipation of consequence is a necessary
element in determining not only whether a
particular act or omission was negligent, but
also whether the injury complained of was
proximately caused by such act or omission.
Where the particular harm sustained was
reasonably foreseeable at the time of the
defendants misconduct, his act or omission is
the legal cause thereof [Jarencio]
OF
DOCTRINE
CHANCE
Also known as: doctrine of discovered peril or
doctrine of supervening negligence or
humanitarian doctrine
The negligence of the plaintiff does not
preclude a recovery for the negligence of the
defendant where it appears that the defendant
by exercising reasonable care and prudence,
might have avoided injurious consequences to
the plaintiff notwithstanding the plaintiffs
(own) negligence. [Sangco, Torts and Damages.]
The doctrine of last clear chance states that
where both parties are negligent but the
negligent act of one is appreciably later than
that of the other, or where it is impossible to
determine whose fault or negligence caused the
loss, the one who had the last clear opportunity
to avoid the loss but failed to do so, is
chargeable with the loss. The antecedent
negligence of the plaintiff does not preclude
him from recovering damages caused by the
supervening negligence of the defendant, who
had the last fair chance to prevent the
PAGE 418
UP LAW BOC
CIVIL LAW
Elements:
(1) Legal right in favor of a person;
(2) Correlative legal duty on the part of
another;
(3) Wrong in the form of an act or omission or
violation of said legal right and duty with
consequent injury or damage.
Legal Injury
CONTRIBUTORY NEGLIGENCE
Conduct on the part of the injured party, which
contributed as a legal cause to the harm he has
suffered, which falls below the standard to
which he is required to conform for his own
protection. [Valenzuela vs. CA (1996)]
Contributory negligence does not defeat an
action if it can be shown that the defendant
might, by the exercise of reasonable care and
prudence, have avoided the consequences of
the injured party's negligence. Petitioners
negligence contributed only to his own injury
and not to the principal occurrenceit was
PAGE 419
UP LAW BOC
CIVIL LAW
VIOLATIONS OF A PERSONS
SECURITY
AND
PHYSICAL
INJURIES [ART. 33, CC)
CONCEPT
Intentional Torts
CLASSES OF INJURY
INJURY TO PERSONS
Art. 19. Every person must, in the exercise of his
rights and in the performance of his duties, act
with justice, give everyone his due, and observe
honesty and good faith.
Art. 20. Every person who, contrary to law, willfully
or negligently causes damage to another shall
indemnify the latter for the same.
Art. 21. Any person who willfully causes loss or
injury to another in a manner that is contrary to
morals, good customs or public policy shall
compensate the latter for the damage.
INJURY TO PROPERTY
Art. 23. Even when an act or event causing
damage to anothers property was not due to the
fault or negligence of the defendant, the latter
shall be liable for indemnity if through the act or
event he was benefited.
INJURY TO RELATIONS
Art. 26. Every person shall respect the dignity,
personality, privacy and peace of mind of his
neighbors and other persons. The following and
similar acts, though they may not constitute a
criminal offense, shall produce a cause of action
for damages, prevention and other relief:
(1) Prying into the privacy of anothers residence;
(2) Meddling with or disturbing the private life or
family relations of another;
(3) Intriguing to cause another to be alienated
from his friends;
(4)
Vexing or humiliating another on account
of his religious beliefs, lowly station in life, place of
birth, physical defect, or other personal condition.
PAGE 420
UP LAW BOC
WITH
CIVIL LAW
PERSONAL
INTENTIONAL NON-PHYSICAL
HARMS
Conversion
Major interferences with the chattel, or with the
plaintiffs rights in it, which are so serious, and
so important, as to justify the forced judicial sale
to the defendant. [Prosser and Keeton, p. 90]
TRESPASS TO CHATTELS
Any direct and immediate intentional
interference with a chattel in the possession of
another. [Prosser and Keeton, p. 85]
Elements: An invasion
(1) which interfered with the right of exclusive
possession of the land, and
(2) which was a direct result of some act
committed by the defendant. [Prosser and
Keeton, p. 67]
TRESPASS TO LAND
Any intentional use of anothers real property,
without authorization and without a privilege by
law to do so, is actionable as a trespass without
regard to harm. [Prosser and Keeton, p. 70]
INTERFERENCE
PROPERTY
(ILLEGAL
FALSE IMPRISONMENT
DETENTION)
PAGE 421
UP LAW BOC
CIVIL LAW
VIOLATION OF PRIVACY
It is the right to be let alone, or to be free from
unwarranted publicity, or to live without
unwarranted interference by the public in
matters in which the public is not necessarily
concerned.
PAGE 422
UP LAW BOC
Invasion of Privacy
Types:
CIVIL LAW
Elements:
(1) That the defendant was himself the
prosecutor or that he instigated its
commencement;
(2) That the action was finally terminated with
an acquittal;
(3) That in bringing the action, the prosecutor
acted without probable cause;
(4) That he was actuated or impelled by legal
malice, that is, by improper and sinister
motives. [Lao vs. CA, 1991]
MALICIOUS PROSECUTION
Defamation
PAGE 423
UP LAW BOC
CIVIL LAW
SEDUCTION
Sangco: Seduction is sexual intercourse with an
unmarried woman of chaste character whose
consent was obtained through abuse of
confidence or through deceit.
FRAUD OR MISREPRESENTATION
(FORMERLY DECEIT)
Defenses:
(1) Absence of elements
(2) Privilege
AND
DEFAMATION, FRAUD
PHYSICAL INJURIES
Art. 33. In case of defamation, fraud, and physical
injuries, a civil action for damages, entirely
separate and distinct from the criminal action, may
be brought by the injured party. Such civil action
shall proceed independently of the criminal
prosecution, and shall require only a
preponderance of evidence.
DEFAMATION
PAGE 424
UP LAW BOC
CIVIL LAW
Elements:
(1) Wrongful conduct of the defendant:
intentional and malicious enticing of a
spouse away from the other spouse
ALIENATION OF AFFECTION
This is a cause of action in favor of a husband
against one who wrongfully alienates the
affection of his wife, depriving him of his
conjugal rights to her consortium, that is, her
society, affection, and assistance.
FAMILY RELATIONS
Kinds:
(1) Family relations
(2) Social relations
(3) Economic relations
(4) Political relations
INTERFERENCE WITH
RELATIONS
UNJUST DISMISSAL
The employers right to dismiss his employee
differs from, and should not be confused with
the manner in which the right is exercised.
When the manner in which the company
exercised its right to dismiss was abusive,
oppressive or malicious, it is liable for damages.
Although the acts complained of seemingly
appear to constitute matters involving
employee-employer relations as Quisaba's
dismissal was the severance of a pre-existing
employee-employer relation, his complaint is
grounded not on his dismissal per se as in fact
he does not ask for reinstatement or backwages,
but on the manner of his dismissal and the
consequent effects of such dismissal.
The case at bar is intrinsically concerned with a
civil (not a labor) dispute; it has to do with an
alleged violation of Quisaba's rights as a
member of society, and does not involve an
existing employee-employer relation within the
meaning of section 2(1) of Presidential Decree
No. 21. The complaint is thus properly and
exclusively cognizable by the regular courts of
justice, not by the National Labor Relations
Commission. [Quisaba vs. Sta. Ines-Melale
Veneer & Plywood (1974)]
Note: The foregoing decision thus states that
where the employee does not seek
reinstatement or expressly or impliedly accepts
the employers right to terminate the contract of
PAGE 425
UP LAW BOC
CIVIL LAW
LOSS OF CONSORTIUM
The plaintiff Aleko E. Lilius also seeks to recover
the sum of P2,500 for the loss of what is called
Anglo-Saxon common law consortium of his
wife, that is, her services, society and conjugal
companionship, as a result of personal injuries
which she had received from the accident now
under consideration.
PAGE 426
UP LAW BOC
INTERFERENCE
ECONOMIC RELATIONS
TORTIOUS
CONTRACT
CIVIL LAW
Elements of interference:
(1) Existence of a valid contract;
(2) Knowledge of the third person of the
existence of such contract; and
(3) Interference without legal justification or
excuse.
WITH
SOCIAL RELATIONS
MEDDLING WITH OR DISTURBING FAMILY
RELATIONS
Art. 26. Every person shall respect the dignity,
personality, privacy and peace of mind of his
neighbors and other persons. The following and
similar acts, though they may not constitute a
criminal offense, shall produce a cause of action
for damages, prevention and other relief:
(2)
Meddling with or disturbing the private
life or family relations of another;
PAGE 427
UP LAW BOC
CIVIL LAW
POLITICAL RELATIONS
32, CC)
UNFAIR COMPETITION
Art. 28. Unfair competition in agricultural,
commercial or industrial enterprises or in labor
through the use of force, intimidation, deceit,
machination or any other unjust, oppressive or
highhanded method shall give rise to a right of
action by the person who thereby suffers damage.
PAGE 428
UP LAW BOC
CIVIL LAW
PATERFAMILIAS)
TEST OF NEGLIGENCE
Elements:
(1) Legal duty
(2) Breach
(3) Causation
(4) Damages
Negligence
PAGE 429
UP LAW BOC
CIVIL LAW
DOCTORS
Whether or not a physician has committed an
inexcusable lack of precaution in the treatment
of his patient is to be determined according to
the standard of care observed by other
members of the profession in good standing
under similar circumstances bearing in mind the
advanced state of the profession at the time of
BANKS
STANDARD OF CARE
Test: Did the defendant in doing the alleged
negligent act use that reasonable care and
caution which an ordinarily prudent man would
have used in the same situation? If not, then he
is negligent. Negligence in a given case is not
determined by reference to the personal
judgment of the actor in the situation before
him, but is determined in the light of human
experience and the facts involved in the
particular case.
Conduct is said to be negligent when a prudent
man in the position of the tortfeasor would have
foreseen that an effect harmful to another was
sufficiently probable to warrant his foregoing
the conduct or guarding against its
consequences. [Picart vs. Smith (1918)]
Note: Only the KIND of injury needs to be
foreseen, NOT the actual specific injury.
PAGE 430
UP LAW BOC
OR
CIVIL LAW
SUDDEN
Valenzuela vs. CA (1996): An individual, who
suddenly finds himself in a situation of danger
and is required to act without much time to
consider the best means that may be adopted
to avoid the impending danger, is not guilty of
negligence if he fails to undertake what
subsequently and upon reflection may appear
to be a better solution, unless the emergency
was brought by his own negligence.
EMERGENCY RULE
PERIL DOCTRINE
POSSESSOR
OF
EXTREMELY
DANGEROUS INSTRUMENTALITIES
Indeed, a higher degree of care is required of
someone who has in his possession or under his
control an instrumentality extremely dangerous
in character, such as dangerous weapons or
substances. Such person in possession or
control of dangerous instrumentalities has the
duty to take exceptional precautions to prevent
any injury being done thereby. Unlike the
ordinary affairs of life or business which involve
little or no risk, a business dealing with
dangerous weapons requires the exercise of a
higher degree of care. [Pacis vs. Morales (2010)]
CHILDREN
PAGE 431
CIVIL LAW
PRESUMPTION OF NEGLIGENCE
UP LAW BOC
Art 1711.
Owners of enterprises and other
employers are obliged to pay compensation for the
death of or injuries to their laborers, workmen,
mechanics or other employees even though the
event may have been purely accidental or entirely
due to fortuitous cause, if the death or personal
injury arose out of and in the course of
employment. The employer is also liable for
compensation if the employee contracts any
illness or disease caused by such employment or
as a result of the nature of the employment. If the
mishap was due to the employees own notorious
negligence, or voluntary act, or drunkenness, the
employer shall not be liable for compensation.
When the employees lack of due care contributed
to his death or injury, the compensation shall be
equitably reduced.
Art. 1735. In all cases other than those mentioned
in Nos. 1, 2, 3, 4, and 5 of the preceding article
(calamity, act of public enemy in war, act of owner
of the goods, character of the goods, order of
competent public authority), if the goods are lost
destroyed or deteriorated, common carriers are
presumed to have been at fault or to have acted
negligently, unless they prove that they observed
extraordinary diligence as required under Art. 1733.
OR
PRESUMED
NEGLIGENCE
NEGLIGENCE PER SE
EVIDENCE
QUANTUM OF PROOF IN QUASIDELICT VS. QUANTUM OF PROOF IN
BREACH OF CONTRACT
PAGE 432
UP LAW BOC
CIVIL LAW
Elements:
The elements of caso fortuito are:
(1) The cause of the unforeseen and
unexpected occurrence, or of the failure of
the debtor to comply with his obligation,
must be independent of the human will;
DUE DILIGENCE
DEFENSES
Elements:
Res ipsa loquitur is applicable when:
(1) The accident is of a kind which ordinarily
does not occur in the absence of someones
negligence;
(2) It is caused by an instrumentality within the
exclusive control of the defendant or
defendants; and
(3) The possibility of contributing conduct
which would make the plaintiff responsible
is eliminated. [Ramos vs. CA (1999)]
BASIS
The res ipsa loquitur doctrine is based in part
upon the theory that the defendant in charge of
the instrumentality which causes the injury
either knows the cause of the accident or has
the best opportunity of ascertaining it and that
the plaintiff has no such knowledge, and
therefore is compelled to allege negligence in
general terms and to rely upon the proof of the
happening of the accident in order to establish
negligence. [DM Consunji vs. CA (2001)]
EFFECT
The fact of the occurrence of an injury, taken
with the surrounding circumstances, raise a
presumption of negligence, or make out a
plaintiffs prima facie case, and present a
question of fact for defendant to meet with an
explanation.
In medical malpractice cases, when the doctrine
of res ipsa loquitur is availed by the plaintiff, the
need for expert medical testimony is dispensed
with because the injury itself provides the proof
of negligence. The reason is that the general
rule on the necessity of expert testimony applies
only to such matters clearly within the domain
of medical science, and not to matters that are
within the common knowledge of mankind
which may be testified to by anyone familiar
with the facts. [Ramos vs. CA, supra]
Note: For the res ipsa loquitur doctrine to apply,
it must appear that the injured party had no
knowledge as to the cause of the accident, or
that the party to be charged with negligence
has superior knowledge or opportunity for
explanation of the accident.
PAGE 433
UP LAW BOC
Damages
Recompense
compensation
awarded
or
CIVIL LAW
AUTHORITY OF LAW
Compared to Article 19
One who made use of his own legal right does
no injury, thus, whatever damages are caused to
another should be borne solely by him under
the principle of damnum absque injuria. This
principle, however, does not apply when there is
an abuse in the exercise of a persons right.
[Amonoy vs. Gutierrez (2001)]
Damage
Loss,
hurt,
harm resulting
from the injury
PAGE 434
UP LAW BOC
CIVIL LAW
WAIVER
Prescriptive periods:
4 years for QD
1 year for defamation
PAGE 435
UP LAW BOC
Question
CIVIL LAW
(b)
May both taxicab owners
raise the defense of due diligence in
the selection and supervision of their
drivers to be absolved from liability
for damages to X? Reason.
PAGE 436
UP LAW BOC
Suggested
Answer
Alternative
Answer
a)
CIVIL LAW
in
Requisites of liability:
(1) Defendant is a manufacturer or possessor of
foodstuff, drinks, toilet articles and similar
goods;
(2) He used noxious or harmful substances in
the manufacture or processing of the
foodstuff, drinks or toilet articles consumed
or used by the plaintiff;
(3) Plaintiffs death or injury was caused by the
product so consumed or used; and
(4) The damages sustained and claimed by the
plaintiff and the amount thereof.
PRODUCTS LIABILITY
Special
Liability
Particular Cases
PAGE 437
UP LAW BOC
BURDEN OF PROOF
CIVIL LAW
7394,
PAGE 438
UP LAW BOC
CIVIL LAW
PAGE 439
UP LAW BOC
Negligence
Basis
Liability
is
based on lack of
proper care and
diligence
for
Condition
of the act
Action
damages
Act complained
of is already
done
which
caused injury to
the plaintiff
Remedy
VS.
CIVIL LAW
Abatement
NUISANCE PER SE
Nuisance
Liability
attaches
regardless
of
the
skill
exercised
to
avoid the injury
There
is
continuing harm
being suffered
by the aggrieved
party because of
the
maintenance of
the act or thing
which
constitutes the
nuisance
NUISANCE
Art. 694. A nuisance is any act, omission,
establishment, business, condition of property, or
anything else which:
(1) Injures or endangers the health or safety of
others; or
(2) Annoys or offends the senses; or
(3) Shocks, defies or disregards decency or
morality; or
(4) Obstructs or interferes with the free passage
of any public highway or street, or any body of
water; or
Hinders or impairs the use of property.
(5)
Art. 696. Every successive owner or possessor of
property who fails or refuses to abate a nuisance in
that property started by a former owner or
possessor is liable therefor in the same manner as
the one who created it.
Art. 697. The abatement of a nuisance does not
preclude the right of any person injured to recover
damages for its past existence.
Art. 698. Lapse of time cannot legalize any
nuisance, whether public or private.
PAGE 440
UP LAW BOC
PUBLIC NUISANCE
CIVIL LAW
ATTRACTIVE NUISANCE
PRIVATE NUISANCE
PAGE 441
UP LAW BOC
CIVIL LAW
VIOLATION OF
CONSTITUTIONAL RIGHTS
VIOLATION OF CIVIL LIBERTIES
Art 32. Any public officer or employee, or any
private individual, who directly or indirectly
obstructs, defeats, violates or in any manner
impedes or impairs any of the following rights and
liberties of another person shall be liable to the
latter for damages:
(1) Freedom of religion
(2) Freedom of speech
(3) Freedom to write for the press or to maintain a
periodical publication
(4) Freedom from arbitrary or illegal detention
(5) Freedom of suffrage
(6) The right against deprivation of property
without due process of law
(7) The right to just compensation when property
PAGE 442
UP LAW BOC
CITIES,
CIVIL LAW
AND
PROVINCES,
MUNICIPALITIES
Nature of liability
(1) Of the police officer Primary
(2) City or municipality Subsidiary
DERELICTION OF DUTY
Requisites:
(1) Defendant is a public officer charged with a
performance of a duty in favor of the
plaintiff;
(2) He refused or neglected without just
cause to perform the duty;
(3) Plaintiff sustained material or moral loss as
a consequence of such non-performance;
(4) The amount of such damages, if material.
[Amaro vs. Samanguit]
Coverage
Applies only to acts of nonfeasance or the
nonperformance of some acts which a person is
obliged or has responsibility to perform.
The duty of the public servant must be
ministerial in character. If the duty is
discretionary, he is not liable unless he acted in
a notoriously arbitrary manner.
Defense of good faith is not available
The reason of its unavailability is that an officer
is under constant obligation to discharge the
PAGE 443
UP LAW BOC
Summary:
CIVIL LAW
PAGE 444
UP LAW BOC
BUILDING
OR
CIVIL LAW
HEAD OF FAMILY
OF
PROPRIETOR
STRUCTURE
Art. 2190. The proprietor of a building or structure is
responsible for the damages resulting from its total
or partial collapse, if it should be due to the lack of
necessary repairs.
Art. 2191. Proprietors shall also be responsible for
damages caused:
(1) By the explosion of machinery which has not
been taken care of with due diligence, and the
inflammation of explosive substances which
have not been kept in a safe and adequate
place;
(2) By excessive smoke, which may be harmful to
persons or property;
(3) By the falling of trees situated at or near
highways or lanes, if not caused by force
majeure;
(4) By emanations from tubes, canals, sewers or
deposits of infectious matter, constructed
without precautions suitable to the place.
PAGE 445
UP LAW BOC
Strict Liability
CIVIL LAW
CLASSES
NUISANCE
APPLICABILITY OF PROVISION
Since the law makes no distinction, this is
applicable to both wild (in case the wild animal
is kept) and domestic animals. It is enough that
defendant is the possessor, owner, or user of the
animal at the time it caused the damage
complained of, to hold him liable therefor.
BASIS
Possession of the animal, not ownership, is
determinative of liability under Art. 2183. The
obligation imposed by said article is not based
on the negligence or on the presumed lack of
vigilance of the possessor or user of the animal
causing damage. It is based on natural equity
and on the principle of social interest that he
who possesses animals for his utility, pleasure,
or service, must answer for any damage which
such animal may cause. [Vestil vs. IAC (1989)]
SCOPE OF PROVISION
PAGE 446
CIVIL LAW
UP LAW BOC
CONSUMER ACT
PAGE 447
UP LAW BOC
CIVIL LAW
Defenses/Exceptions
Force majeure
Fault of the person who
suffered damage
Manufacturers and
processors of foodstuffs,
drinks, toilet articles and
similar goods
Defendant in possession
of dangerous weapons/
substances such as
firearms and poison
Provinces, Cities and
Municipalities
Proprietor of building/
structure
Engineer or Architect
PAGE 448
UP LAW BOC
Contractor
For What
If within the same period, the edifice
falls on account of:
o Defects in the construction;
o Used of materials of inferior quality
furnished by him; or
o Violation of the terms of the contract
AND he supervised the construction.
If within 15 years from the completion
of the structure, the edifice falls on
account of:
o Defects in the construction;
o Used of materials of inferior quality
furnished by him; or
o Violation of the terms of the contract
Liable for damages caused by things
thrown or falling from the same
PAGE 449
CIVIL LAW
Defenses/Exceptions
CIVIL LAW
UP LAW BOC
DAMAGES
ACCORDING TO MANNER OF
DETERMINATION
VS.
Requisites:
To seek recovery of actual damages, it is
necessary to prove the actual amount of loss
with a reasonable degree of certainty, premised
upon competent proof and on the best evidence
obtainable.[ Asilio, Jr. vs. People and Sps.
Bombasi (2011)]
SPECIAL DAMAGES
GENERAL DAMAGES
Definition
DAMAGE
INJURY VS.
DAMAGES
Injury is the illegal invasion of a legal right.
Damage is the loss, hurt, or harm which results
from the injury. Damages are the recompense or
compensation awarded for the damage
suffered. [Custodio vs. CA (1996)]
The obligation to repair the damages exists
whether done intentionally or negligently and
whether or not punishable by law. [Ocena vs.
Icamina (1990)]
Elements for recovery of damages:
(1) Right of action
(2) For a wrong inflicted by the defendant
(3) Damage resulting to the plaintiff
Classification
Art. 2197. Damages may be:
(1) Actual or compensatory;
(2) Moral;
(3) Nominal;
(4) Temperate or moderate;
(5) Liquidated; or
(6) Exemplary or corrective.
ACCORDING TO PURPOSE
(1) For adequate reparation of the injury
(a) Compensatory (reparation of pecuniary
losses)
(b) Moral (reparation for non-pecuniary
losses: injury to feelings; physical
suffering, etc.)
(2) For vindication of the right violated:
Nominal
(3) For less than adequate reparation:
Moderate
PAGE 450
UP LAW BOC
LOSS;
CIVIL LAW
UNREALIZED
VALUE OF
PROFIT
COMPONENTS
PAGE 451
UP LAW BOC
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
CIVIL LAW
COMPOUNDING OF INTEREST
Interest due shall earn legal interest from the
time it is judicially demanded, although the
obligation may be silent on the point.
INTEREST
PAGE 452
UP LAW BOC
6%
per
annum
6%
per
annum.
Legal
interest
(b) In the
absence of
stipulation,
the rate of
interest
shall be 6%
p.a. (legal
interest)
RATE
(a)
That
which may
have been
stipulated in
writing.
Contracts
and
Quasicontracts
Source
Art.
2201
Crimes
and
Quasidelicts
RATE
of
CIVIL LAW
ACCRUAL
forbearance
credit.
QUASI-
AND
IN
CONTRACTS
CONTRACTS
Art.
2202
Extent of Liability
If the obligor acted in GOOD
FAITH, he shall be liable for
natural
and
probable
consequences of the breach,
which the parties have foreseen
or could have reasonably
foreseen at the time the
obligation was constituted.
Start of Delay:
(1) Extrajudicial: Demand letter
(2) Judicial: Filing of complaint
(3) Award
BASE
and
executory,
whether or not
the case consists
in the payment of
a sum of money
If UNLIQUIDATED,
from the time the
demand can be
established
with
reasonable
certainty. Hence,
the interest shall
begin to run only
FROM THE DATE
THE JUDGMENT
OF THE COURT IS
MADE (at which
time
the
quantification
of
damages may be
deemed to have
been reasonably
ascertained).
From
FINALITY
UNTIL
ITS
SATISFACTION,
this period being
deemed to be an
equivalent to a
To be computed
from default, i.e.,
from JUDICIAL or
EXTRAJUDICIAL
demand under and
subject to the
provisions
of
Article 1169 of the
Civil Code.
ACCRUAL
PAGE 453
UP LAW BOC
CIVIL LAW
BUSINESS
Where:
Life expectancy = 2/3 * (80 age of victim at
the time of death)
EARNING CAPACITY,
STANDING
PAGE 454
UP LAW BOC
CIVIL LAW
IN RAPE CASES
PAGE 455
UP LAW BOC
Moral Damages
PRINCIPLES
CIVIL LAW
OF
be
GENERAL
RECOVERY
Requisites:
(1) There must be an injury, whether physical,
mental or psychological, clearly sustained
by the claimant;
(2) There must be a culpable act or omission
factually established;
(3) The wrongful act or omission of the
defendant must be the proximate cause of
the injury sustained by the claimant; and
(4) The award of damages is predicated on any
of the cases stated in Art. 2219. [Villanueva
vs. Salvador (2006)]
WHEN AWARDED
Awarded when injury consists of:
(a) Physical suffering
(b) Besmirched reputation
(c) Mental anguish
(d) Fright
(e) Moral shock
(f) Wounded feelings
(g) Social humiliation
(h) Serious anxiety
(i) Similar injury
Though incapable of pecuniary computation,
If such is the proximate result of defendants
act or omission.
PAGE 456
UP LAW BOC
Question
CIVIL LAW
PAGE 457
UP LAW BOC
Suggested
Answer
CIVIL LAW
WHEN RECOVERABLE
Art. 2219. Moral damages may be recovered in the
following and analogous cases:
(1) A criminal offense resulting in physical
injuries;
(2) Quasi-delicts causing physical injuries;
(3) Seduction, abduction, rape, or other lascivious
acts;
Adultery or concubinage;
Illegal or arbitrary detention or arrest;
Illegal search;
Libel, slander or any other form of defamation;
Malicious prosecution;
Acts mentioned in article 309;
Acts and actions referred to in articles 21, 26,
27, 28, 29, 30, 32, 34, and 35.
(4)
(5)
(6)
(7)
(8)
(9)
(10)
The parents of the female seduced, abducted,
raped, or abused, referred to in No. 3 of this article,
may also recover moral damages.
The spouse, descendants, ascendants, and
brothers and sisters may bring the action
mentioned in No. 9 of this article, in the order
named.
Art. 2220. Willful injury to property may be a legal
ground for awarding moral damages if the court
should find that, under the circumstances, such
damages are justly due. The same rule applies to
breaches of contract where the defendant acted
fraudulently or in bad faith.
PAGE 458
UP LAW BOC
CIVIL LAW
PAGE 459
UP LAW BOC
IN
CASES
PROSECUTION
OF
CIVIL LAW
must
be
Requisites:
(1) Actual existence of pecuniary loss.
(2) The nature and circumstances of the loss
prevents proof of the exact amount.
(3) They are more than nominal and less than
compensatory.
(4) Causal connection between the loss and the
defendants act or omission.
(5) Amount must be reasonable.
Temperate Damages
MALICIOUS
Nominal Damages
Nominal damages consist in damages awarded,
not for purposes of indemnifying the plaintiff for
any loss suffered, but for the vindication or
recognition of a right violated by the defendant.
Requisites and characteristics:
(1) Invasion or violation of any legal or property
right.
(2) No proof of loss is required.
(3) The award is to vindicate the right violated.
WHEN AWARDED
Art. 2221. Nominal damages are adjudicated in
order that a right of the plaintiff, which has been
violated or invaded by the defendant, may be
vindicated or recognized, and not for the purpose
of indemnifying the plaintiff for any loss suffered
by him.
Art. 2222. The court may award nominal damages
in every obligation arising from any source
enumerated in article 1157, or in every case where
any property right has been invaded.
Art. 2223. The adjudication of nominal damages
shall preclude further contest upon the right
involved and all accessory questions, as between
the parties to the suit, or their respective heirs and
assigns.
PAGE 460
CIVIL LAW
UP LAW BOC
Exemplary or Corrective
Damages
Exceptions:
(1) When there is a stipulation to the contrary.
(2) When the obligor is sued for refusal to pay
the agreed penalty.
(3) When the obligor is guilty of fraud.
Liquidated Damages
Art. 2227. Liquidated damages, whether intended
as an indemnity or a penalty, shall be equitably
reduced if they are iniquitous or unconscionable.
PAGE 461
UP LAW BOC
WHEN RECOVERABLE
Art.
2231
Art.
2230
Contracts
and
Quasi- contracts
Quasi-delicts
Crimes
If arising from
Art.
2232
(1)
(2)
(3)
(4)
CIVIL LAW
GENERAL PRINCIPLES
When exemplary
damages are granted
The
crime
was
committed with an
aggravating
circumstance/s
Defendant acted with
gross negligence
Defendant acted in a
wanton,
fraudulent,
reckless, oppressive, or
malevolent manner
QUASI-
IN
CONTRACTS
AND
CONTRACTS [ART. 2232)
Art. 2232. In contracts and quasi-contracts, the
court may award exemplary damages if the
defendant acted in a wanton, fraudulent, reckless,
oppressive, or malevolent manner.
PAGE 462
UP LAW BOC
(3)
(4)
(5)
(6)
(7)
CIVIL LAW
Graduation of Damages
PAGE 463
UP LAW BOC
CIVIL LAW
FOR CONTRACTS
Art. 2215 In contracts, quasi-contracts, and quasidelicts, the court may equitably mitigate the
damages under circumstances other than the case
referred to in the preceding article, as in the
following instances:
(1) That the plaintiff himself has contravened the
terms of the contract;
(2) That the plaintiff has derived some benefit as
a result of the contract;
(3) In cases where exemplary damages are to be
awarded, that the defendant acted upon the
advice of counsel;
(4) That the loss would have resulted in any
event;
(5)
That since the filing of the action, the
defendant has done his best to lessen the
plaintiff's loss or injury.
IN CONTRACTS, QUASI-CONTRACTS
AND QUASI-DELICTS
PLAINTIFFS NEGLIGENCE
Even if Manila Electric is negligent, in order that
it may be held liable, its negligence must be the
proximate and direct cause of the accident.
[Manila Electric vs. Remonquillo (1956)]
BURDEN OF PROOF
The DEFENDANT has the burden of proof to
establish that the victim, by the exercise of the
diligence of a good father of a family, could
have mitigated the damages. In the absence of
such proof, the amount of damages cannot be
reduced.
Note: The victim is required only to take such
steps as an ordinary prudent man would
reasonably adopt for his own interest.
RULES
IN CRIMES
Art. 2204. In crimes, the damages to be
adjudicated may be respectively increased or
lessened according to the aggravating or
mitigating circumstances.
IN QUASI-DELICTS
Art. 2214. In quasi-delicts, the contributory
negligence of the plaintiff shall reduce the
damages that he may recover.
CONTRIBUTORY NEGLIGENCE
The alleged contributory negligence of the
victim, if any, does not exonerate the accused in
criminal cases committed through reckless
imprudence, since one cannot allege the
negligence of another to evade the effects of his
own negligence. [Genobiagon vs. CA (1989)]
If so, the disobedience of the plaintiff in placing
himself in danger contributed in some degree to
the injury as a proximate, although not as its
primary cause.
(Supreme Court in this case cited numerous
foreign precedents, mostly leaning towards the
doctrine that contributory negligence on the
part of the plaintiff did not exonerate defendant
PAGE 464
UP LAW BOC
CIVIL LAW
FOR QUASI-CONTRACTS
(1) In cases where exemplary damages are to
be awarded such as in Art. 2232;
(2) Defendant has done his best to lessen the
plaintiffs injury or loss.
LIQUIDATED DAMAGES
Miscellaneous Rules
COMPROMISE
FOR QUASI-DELICTS:
(1) That the loss would have resulted in any
event because of the negligence or omission
of another, and where such negligence or
omission is the immediate and proximate
cause of the damage or injury;
(2)
Defendant has done his best to lessen
the plaintiffs injury or loss.
PAGE 465
UP LAW BOC
THAT MUST
CO-
DAMAGES
EXIST
EXEMPLARY
WITH
MORAL,
TEMPERATE,
LIQUIDATED
OR
COMPENSATORY
There is no basis for awarding exemplary
damages either, because this species of
damages is only allowed in addition to moral,
temperate, liquidated, or compensatory
damages, none of which have been allowed in
this case, for reasons herein before discussed.
[Francisco vs. GSIS (1963)]
There was, therefore, no legal basis for the
award of exemplary damages since the private
respondent was not entitled to moral,
temperate, or compensatory damages and
there was no agreement on stipulated
damages. [Scott Consultants & Resource
Development Corp. vs. CA (1995)]
PAGE 466
CIVIL LAW