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Civil Law o No.

The phrase unless otherwise provided only refers to the


number of days, not fact of publication.
Bar 2011 Notes What is required to be published?
o The entire text of the law.
Roland Glenn T. Tuazon
What is the interpretation of the term law?
o It can be executive issuances, regulations, et. al., and not just
Ateneo de Manila University
republic acts, as long as it affects the public in general and it
requires public interest.
TABLE OF CONTENTS:
Can a law affect just one person?
1. PRELIMINARY TITLE o Yes, for instance, declarations of citizenship. It still has to be
2. PERSONS AND FAMILY RELATIONS published. Same rule applies, even if only one locality is
3. PROPERTY affected
4. SUCCESSION Read Tanada v. Tuvera.
5. OBLIGATIONS AND CONTRACTS o It is not whether you read the publication or not. It not whether
6. LAND TITLES you understand the law or not. As long as there is opportunity
7. PRESCRIPTION to read it, there is compliance with publication requirements.
8. CREDIT TRANSACTIONS Garcillano v. House:
9. SALES o The rules of procedure for legislative inquiries of Senate must
10. PARTNERSHIP be published in accordance to Art. 2 of the Civil Code, as
11. AGENCY mandated by the constitution (duly published).
12. COMPROMISE SEC v. GMA Network:
13. LEASE o A memorandum circular regulating filing fees for submission of
14. TORTS AND DAMAGES articles of incorporation or extension of corporate life must be
published because it regulates public rights at large.

PRELIMINARY TITLE Mistake of fact v. mistake of law

Mistake of fact can be a ground for vitiation of consent. But mistake of


Publication
law is not a defense for vitiated consent.
When do laws become effective? Specific instances where a mistake of law can have some effect?
o 15 days after publication in OG or newspaper of general o 1. Good faith defense must show that it is a difficult provision
circulation (EO 200), unless otherwise provided of law to interpret, and this gave rise to mistake (Art. 526).
Is 15 days mandatory? BUT this only gives rise to mitigation of liability, not complete
o No. It can be some other time period, less or more. What is excuse there from.
mandatory is fact of publication. o 2. Mistake of payment or solutio indebiti
Can the law provide that there is no need for publication?
Prospectivity of laws

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General rule: laws are prospective in nature. o If law number 2 is a case of implied repeal, then law number 1
When did the Family Code take effect? is revived unless law number 3 is likewise incompatible or law
o August 3, 1988 number 3 repeals law 1.
When did the Civil Code take effect? (2) When does a law lapse?
o August 30, 1950 o When the law itself provides for its own lifespan. There is no
Exceptions to non-retroactivity? need for a further statute to give effect to its lapse.
o Regardless of what kind of law, it MUST have a retroactivity (3) Unconstitutionality declared by courts. How does this differ?
clause. (IMPT) o When the court declares that a law is unconstitutional, it is null
o 1. Procedural laws and void from the beginning. Exception: operative fact, which
o 2. Curative laws is based on equity.
o 3. Tax laws
o 4. Penal laws which benefit the accused (who is not a habitual Judicial decisions
offender)
o 5. Substantive laws that do not impair vested rights Considered as part of the law of the land. Stare decisis, however, only
o 6. Interpretative laws applies to SC decisions.
Liam Law v. Olympic Sawmill: It does not, however, become a law per se no need to publish.
o Ineffectivity of usury law should retroact as to change the De Roy v. CA:
Rules of Court as to this matter. o Judicial decisions need not be published first in the OG before
becoming effective and binding jurisprudence. A lawyer must
Waiver of rights keep abreast with judicial decisions.

What is the general rule? Computation of period of laws


o Rights may be waived
What are the exceptions? Ordinary contracts: you can define your terms any way you want
o 1. Waiver against public policy, public order, good customs, (example, a year can be 300 days) For laws, however, a year is 365
morals, or law days.
o 2. Prejudicial to third persons with right recognized by law o UNLESS, one specifically names the year
First day excluded, last day included.
Three types of termination of laws For contracts, it does not matter if the last day falls on a weekend.
Contrast with Rules of Court, where it adjusts to the next business day.
Effectivity of laws is a shared legislative and judicial function.
(1) Repeal: Requires another law passed by Congress declaring that Principle of nationality
the law is repealed, or a new law that is irreconcilable with the old law.
Implied repeal is not favored. What are the things covered by the principle of nationality?
What happens if the repealing law is itself repealed? o Family rights and duties,
o It depends on law number 2. If law number 2 is a case of o status and condition, (ex. legitimacy, whether marriage is valid)
express repeal, then law number 1 is not revived. There must o Legal capacity
be a specific provision reviving it.
2
Wherever a Filipino citizen is, Philippine law governs the three realms property in the Philippines, where British law is
above. unclear, it is presumed it is the same as Philippine
When there is an alien within our country, we still apply their national law. Philippine law governs because the property is
laws as regards family rights and duties, status and condition, and legal found here. Our law says that he can only dispose
capacity. of his share in the property.
Nationality also governs successional rights of the decedent o Exceptions:
For purposes of legal capacity, when will the principle of 1) successional rights are governed by the national
nationality not apply? law of the decedent
o Marriages lex loci celebrationis but only as to authority of Order of succession, amount of successional
solemnizing officer, marriage license, marriage ceremony rights, intrinsic validity of testamentary
General rule: still governed by nationality (IMPT) provisions, capacity to succeed
o Contracts involving real or personal properties lex situs 2) property relations between spouses governed by
Exception: when reason of acquisition of the thing is the marriage settlement entered into prior to marriage
succession: nationality of the decedent governs When does renvoi usually apply?
o For the formal validity of wills lex loci celebrationis o This usually applies when an alien dies in the Philippines.
3 things to determine: Basing this on general principle, basing it on the law of
o What law governs legal capacity nationality of decedent. If based on national law of decedent, it
o What law governs extrinsic validity refers back to the law of the domicile (which is the Philippines),
o What law governs intrinsic validity then we accept the renvoi and apply Philippine law
CONTRACTS Llorente v. CA:
o Legal capacity nationality o A married Filipino man joined the US army and became a US
Except: contracts referring to properties, which is citizen. He divorced his wife after his wife cheated on him.
governed by lex situs The divorce was valid because under American national laws,
o Extrinsic validity lex loci celebrationis he could initiate divorce.
o Intrinsic validity there is freedom to stipulate governing law What does Article 17 say about prohibitive laws?
WILLS o Prohibitive laws here concerning persons, acts, property, or
o Legal capacity national law of decedent, not successor laws which have for their object public order, public policy, or
o Extrinsic validity lex loci celebrationis good customs are not rendered ineffective by laws, judgments,
Aliens choices national law, domicile, Philippine or conventions abroad.
law, lex loci celebrationis o EXCEPTION?
NOTE: for aliens wills, these refer to wills presented Art. 26(2), where an alien obtains divorce abroad
for probate in the Philippines; we dont care otherwise allowing him to remarry, his Filipino spouse gains
o Intrinsic validity national law of the decedent capacity to remarry as well.
PROPERTIES
o Lex rei sitae (where found) Human relations
Ex. so controversy between whether a British
Pardo de Tavera When do the provisions on human relations
decedent spouse can dispose of the entirety of
apply?
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o Human relations chapter are just general concepts guiding Ex. of Art. 21: Wife left her husband, went abroad,
particular human conduct. In the absence of any specific law got a divorce, and remarried. It is against morals,
or contract, then you use these provisions. You cannot good customs, or public policy.
immediately use these provisions, if there is a specific o N.B. Articles 20 and 21 are implementing provisions of Art. 19.
governing law or contract. So Art. 19 is the general principle, and 20 (general sanction)
Chato v. Fortune Tobacco Corp: and 21 (acts contra bonus mores) are the specifics.
o In order for Art. 32 to apply, where a private individual can hold Article 21 Breach of promise to marry. Is there any law that says
a public officer personally liable for an act or omission, there you have to comply with the promise to marry?
must be a particular injury to that person. o No. You cannot demand for specific performance that the
Duty to act with justice, observe honesty, and good faith: other marry you.
o Every person in the exercise of his rights and in the o But you can recover actual damages for expenses, such as
performance of his duties must act with justice, give everyone down-payment for venue, dress, food, etc. But not moral
his due, and observe honesty and good faith. damages, in general.
o Lorente v. Sandiganbayan: An official who cleared three o Exception: moral damages when there is deceit or fraud.
other terminated employees for unpaid liabilities (which is (Baksh)
offset by gratuities later) and then suddenly went legal on There was breach of promise to marry. The teacher became
another employee for no apparent reason was not acting with pregnant, and was dismissed from her job because she got
justice, honesty, good faith. pregnant without a husband. Can she recover from the man loss
o Leads to civil liability even if perfectly legal. of income?
Requisites for Art. 19? o Yes (old case).
o 1. There is legal right or duty o But now, you cannot be dismissed for this anymore, so its
o 2. Exercised in BF moot.
o 3. With intent to prejudice another Who is liable for hospital expenses?
Requisites of Art. 20? o Shared expenses, since it takes two to get pregnant.
o 1. Act contrary to law When are moral damages allowed?
o 2. Whether done willfully or negligently o Criminal or moral seduction.
Requisites of Art. 21?
o 1. Legal act Provisions Dean Del just breezed through:
o 2. But contrary to morals, GC, PP, PO, or law
o 3. With intent to prejudice another 1. Unjust enrichment
a. Garcia v. PAL: If a dismissed employee is reinstated, and then
What is the difference between Art 20 and 21?
the reinstatement is reversed, the employee is not bound to
o Article 20 has to be contrary to law. Article 21 is legal, but
return salaries received. This is a case where social justice
contrary to morals, public policy, or customs.
outweighs unjust enrichment provisions.
o Article 20, the act is either done willfully or negligently as
b. Accion in rem verso Art. 22. Requisites?
long as contrary to law. Article 21, intentional.
i. 1. Defendant enriched
ii. 2. Plaintiff suffered loss

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iii. 3. Unjust enrichment of defendant without just/legal o When a civil case is filed ahead, it proceeds independently and
ground need not wait for resolution of the criminal case.
iv. 4. Plaintiff has no other action based on K, quasi-K, o Assuming the criminal case is instituted ahead, the civil case
crime, or quasi-delict can still be prosecuted separately.
c. What is the difference between Art. 22 and solutio Prejudicial questions:
indebiti? o Opposite suspend criminal case, and wait for civil case to be
i. In solutio, mistake is an essential element. In accion resolved first, which is determinative of guilt or innocence of
in rem verso, it is not. accused in the criminal case.
2. Less in life = more in law o Questions on annulment or nullity of marriage are NOT
3. Thoughtless extravagance prejudicial questions for bigamy. Before you get married, you
4. Violation of privacy need a judicial declaration of nullity for the prior marriage.
o Classic case: ownership of property v. crime of theft.
Public officers o Ching civil case was for annulment of contract, and criminal
case is for violation of trust receipts law. HELD: not
Articles 19-21 bind even public officers. Take note. Though there are considered as prejudicial question because the criminal case
specific provisions. can still proceed, because the act can be considered as
Can a public officer invoke acting in public capacity as a defense? ordinary estafa.
o Aberca v. Ver
o No. Your official function does not include acting with injustice Persons
and being unfair
What actions can you file against public officers? Natural persons
o 1. Action for nonfeasance
But this action cannot be brought against those Juridical capacity:
officers exercising ministerial functions, ex. Register o Passive subject the ability to be the subject of legal relations
of Deeds o UPON BIRTH
o 2. Violation of basic rights o Exceptions: unborn fetus, if:
o 3. Policemen failure to come to the aid of persons in danger 1. Beneficial to it
Ex. donation
Civil liability in criminal prosecutions 2. Subsequent birth
So aborted fetus is not counted because it
Civil liability is always included wasnt born alive
There is a distinction between being acquitted o When is birth complete?
o For reasonable doubt: there is still civil liability 7 months or more in the womb: just born alive
o Because one did not commit the crime: no civil liability Less than 7 months: survive for 24 hours
General rule: civil case is simultaneously filed along with criminal case. Capacity to act:
Criminal case suspends separate civil action. o 18 years old, in general
Independent civil actions: o Although you cannot marry without consent of parents
o NOT suspended upon filing criminal case. End of judicial capacity AND capacity to act = upon death of person
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Doubt as to who between two or more persons called to succeed N.B. Very little relevance in civil law now, but usually just for elections,
each other, as to who died first: etc.
o Presumption: they died at the same time, so no transmission of Distinguish domicile from residence:
rights o Domicile
o Whoever alleges the prior death of one must prove it. Place of habitual residence; based on intention and
Contra rule in Remedial Law/Evidence: Survivorship for those who actual connection
died due to calamity, wreck, battle, or conflagration: One never loses a domicile under a new one is
o Follow what rule? acquired.
Strength and age of the sexes o Residency
o For what purpose can this be used? Based on actual facts of presence
ANY purpose except succession It is possible to be without residence, but one always
o Allowed for: has a domicile
Insurance Domicile is acquired from moment of birth:
Survivorship agreements o Legitimate child domicile of parents (correct the reviewer)
o Illegitimate of mother
Juridical persons o Legitimated of parents
o Foundling wherever found
Birth and death: from when created by law or for ordinary corporations, Domicile of juridical person:
upon registration/dissolution o Provided in charter
o If none, place of business or place of legal representation
Restrictions and limitations

Mere restrictions, which do not exempt the person from certain


obligations: PERSONS AND FAMILY RELATIONS
o Minority,
o insanity and imbecility, MARRIAGE
o deaf-mutism,
Took effect 3 August 1988
o prodigality,
o Does not change the regime of property relations of those who
o civil interdiction
got married prior to the FC
o [For juridical persons this is the issue of ultra vires acts]
o But those who selected CPG are affected by the new
Modifications, which affect a person depending on the type of
provisions as to this property relation, post 3 Aug 1988
transaction, who one is dealing with:
Definition of marriage (elements)
o Age (because it is not minority per se), etc. (See Art. 39)
o 1. Special contract
o Ex. foreigners ownership of land
Compare and contrast marriage from ordinary
Domicile contracts:

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As a general rule, ordinary contracts are provision on legal guardians here,
subject to parties stipulations, as long as not because upon turning 18, then he
against law, PP, morals. already has legal capacity.
But marriage contract is governed by law, 21 to under 25: need parental advice
and is only subject to stipulation for regime o Without: issuance of ML is delayed
of property relations at the moment of for three months
marriage. B) Sex
o 2. Permanent union C) Absence of legal impediments: (see full discussion
Only terminated by death below)
Grounds for voiding or avoiding a marriage: because 37. Incestuous relationships
the marriage was never deemed to have existed 38. Relationships against PP
o 3. Between man and woman 35. Prior existing marriage
Note: P v. Silverio and other spec pro cases on 36. Psychological incapacity
change of sex in registry 52, 53. Failed to comply with distribution of
o 4. In accordance with law properties and presumptive legitimes
o 5. Purpose: establish conjugal and family rights Is there such a thing as defective legal capacity?
No, its either you have it or not.
Effect of lack/defect of essential and formal requirements of marriage: o 2. Consent freely given
Before a solemnizing officer, at the time of the
Essential:
celebration of marriage
o Lack/absence void
Do you have to speak out your consent? No need
o Defect voidable
to verbally explicate it; as long as you can
Formal:
communicate your consent effectively to the
o Lack/absence void
solemnizing officer
o Irregularity still valid, but the person responsible is liable
Is there such a thing as defective consent? Yes,
when it is vitiated. Ex. when one is of unsound mind.
What are the essential and formal requisites of marriage?
A person actually said yes, but there was problem in
Essential requirements: the voluntariness.
o 1. Legal capacity Is it possible for a party not to give consent at all?
A) Age No. Ex. mistake in identity there is total absence of
Under 18: void consent.
18 to under 21: need parental consent Formal requirements:
o Without: voidable o 1. Authority of solemnizing officer
o Whose consent is required? When does the good faith exemption apply, and
when does it not? Will NOT apply for mistakes of
Ideally, both. But one is allowed to
decide, if one is absent, has passed law, such as if you thought one designation of people
away, lost capacity, etc. Ignore the (ex. president or senator) can solemnize a marriage,

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when in fact it cannot. It applies to mistakes of fact. What is this? The document signed after marriage
(ex. you thought the janitor posing as a priest was the ceremony. It is the evidence of the celebration of
parish priest.) Also, even if only one party believed in marriage. This is neither a formal or essential
good faith that the solemnizing officer had authority, requisite. It is merely evidentiary, although the best
the marriage is valid. evidence.
If the solemnizing officer committed fraud or an What is the difference between a ML and a MC?
irregularity in obtaining authority, it has no validity for The absence of a ML results in a void marriage. The
the marriage to be solemnized. absence of a MC will not affect the marriage.
o 2. Valid marriage license o 2. Place of celebration
A party thinks that the marriage license is valid, What about article 8? It is merely directory. If the
when it is not. Can the rule on good faith apply? solemnizing officer agrees to marry the couple in
No. There is no good faith exemption for marriage another place, then it is perfectly fine.
license. The exceptions provided by the FC are not Is there any instance where the place of the
based on GF, but on law. celebration of marriage affects the marriage?
Aranes v. Occiano: A ML gotten after a marriage Yes, for those marriages celebrated by persons with
without an ML does not cure the lack thereof. It is still limited jurisdiction. For instance, the ship captain or
void. airplane captain can only solemnize the marriage in
Examples of defects in marriage license: the vessel or during a stopover. For instance, for
1. Not applied for in the proper place military commanders, it must be within the zone of
2. Just signed by the employee of the LCR, military operations.
although acting with authority of the LCR (if What about members of the judiciary? Within their
no authority, void ML) judicial region. If it is SC, CA, or Sandiganbayan, it is
3. 10 day posting of ML not complied with nationwide.
o 3. Marriage ceremony What is the effect of marriages celebrated by
There is no particular requirement for the ceremony, judges outside judicial regions? As of now, it is a
except for: mere irregularity, according to the SC. This rule is
1. Both must personally appear before the different as opposed to ship captains, etc. (Navarro
solemnizing officer v. Domagtoy)
2. Must openly declare that they take each other as Can this decision apply to mayors? For instance,
husband and wife the mayor of Makati solemnized a marriage in QC.
3. Two witnesses of legal age According to Dean Del, the SC rule on judges must
If there is just one witness, is it an not extend to mayors they must strictly comply with
absence or an irregularity? No resolution their territorial jurisdiction.
yet. Legal impediments (in depth)
Other requirements: o A) Incestuous relationships:
o 1. Marriage certificate 1. Ascendants and descendants, regardless of degree
How many degrees does this rule cover?
Unlimited.
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2. Brothers and sisters, whether full or half blood marriage, is the latter valid? Yes, because
o B) Marriages against public policy the killing was not with intent to marry.
By blood: No need to be convicted
1. Between collateral blood relative, up to fourth civil Who can marry each other?
degree (whether legitimate or illegitimate) 1. Brother-in-law and sister-in-law
NOTE: no prohibition for collateral relatives 2. Stepbrother and stepsister
by half-blood 3. Guardian and ward
Created by marriage: 4. Adopted child and illegitimate child of the
2. Between step-parents and step-children same person
NOTE: no prohibition for step-brother and 5. Parties convicted of adultery or
step-sister concubinage
3. Between parent-in-law and children-in-law 6. Adopted child of husband, adopted child
If your wife dies, can you now marry your of wife
parent in law? No. Not even death o C) Prior existing marriage
terminates this relationship. Not unless you What if the prior marriage has a problem? There
terminate your marriage first through court must still be a judicial declaration that the prior
declaration that the marriage was not valid in marriage is a nullity or is annulled. You have to wait
the first place. for this.
Created by adoptive relationship: Wiegel v. Sempio-Diy: Need to have prior judicial
4. Adopter and adopted declaration of nullity or annulment first, or else the
5. SS of the adopter and adopted second marriage is bigamous.
6. Adopter and SS of adopted If the purpose is some other thing, like succession
7. Legitimate child of adopter and adopted issues, then there is no need for prior judicial
NOTE: the reason is because legitimate declaration prior to questioning the marriage.
children are asked to give their consent to
the adoption. Illegitimate children are not Authority of solemnizing officer:
asked.
Hence the illegitimate children and adopted Who can solemnize:
children may marry. o 1) Any member of the judiciary, as long as:
8. Between adopted children of same adopter Incumbent
Created by criminal intent When does incumbency start? From
9. When one party kills his own spouse or the other when one has taken his oath of office.
partys spouse, with the intention of marrying the What if the judge was on leave or is on
other vacation? Still incumbent.
If the killing was to obtain insurance Is there a need for further authority or
benefits, but there was subsequent license? None; it is an inherent function of
office.

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Within territorial jurisdiction During the voyage, from the point of
Who in particular? RTC, MTC, CA, CTA, SC, embarkation, until one reaches the final
Sandiganbayan, etc. Even if their jurisdiction is destination, including a stop-over.
limited, like the CTA. Contrast this to executive The stop-over must be in a continuous flight.
branch, where only the mayor can. This is different from a break where one
o 2) Member of religious group, authorized by religious group. disembarked and put down all the luggage
Does the religion officer per se possess the and went around already.
authority to solemnize marriage? No. The For purposes of marriage, do we adopt
authority does not come from the office itself. He transportation laws?
needs special authority from the group or sect first. No decision yet.
What is the requirement for the group or sect? o 4) Military commander
The church, sect or group must be recognized. Who is a military commander?
Either or both of the parties must be part of that Commissioned officer, at least second
religion or church. lieutenant up, must be the head of a
What if both are not members of that battalion
religion? Strictly, invalid. But a lot of There is a person who is preferred, before the
people are invoking that this is a gray area, military commander is allowed. Who is this?
where the good faith defense can apply, or There has to be a chaplain assigned to the
one can treat this as a mere irregularity. battalion in the zone of operations, and he
o 3) Ship captain or airplane chief has to be absent.
Who is the captain or chief? The head of the ship, If he is present, then the chaplain must be
or the chief pilot. the one to solemnize.
When can they solemnize marriages? In articulo What if there is no chaplain assigned?
mortis, where one or both are at the point of death. Dean Del prefers the liberal interpretation:
A person is diagnosed as terminally ill, when there is no chaplain assigned, then the
and given two weeks to live. Is he in military commander can solemnize.
articulo mortis? No, the person is not yet What is military operation?
at the point of death. Terminal illness is still Involves State action. This is different from
uncertain. mere police operations for petty crimes.
Who can they solemnize? Who?
Members of crew or passenger No need to be a member of the military or a
What about stowaways? combatant. As long as someone is within
Can still marry them, as long as on board the the zone of military operation.
vessel. o 5) Consuls
When and where can they solemnize? No need to be dying
As long as abroad and both Filipinos
o 6) Mayors

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Reinstated in the LGC of 1991 decides to marry someone else, he or she
cannot use that same consent.
Marriage license 21-25: parental advice
o 3. Certificate of marriage counseling.
Valid marriage license When does this apply?
o What is the consequence of lying about ones place of Parties below 25 years old
residence? What if one party is 80 years old, but the other is
It is a public document, so one can be charged for 23? BOTH must attend, even if the other party is
falsification of a public document. older than 25.
BUT this is a mere irregularity, and should not affect Lack thereof results in 3 month suspension of
validity issuance of Marriage License
o If you lie about your age, and you are not yet 18? 2. What do you need to present for a SUBSEQUENT MARRIAGE?
VOID marriage, not because of the irregularity in the o Proof of termination of marriage:
ML, but because of lack of capacity. Death certificate
Judicial declaration of nullity
Procedure to obtain a Marriage License
Judicial declaration of annulment
1. What do you need to present when you get married (FIRST o If one is previously married but is still 18-21 years old, do
MARRIAGE)? you still need parental consent? Not anymore, because the
o 1. Birth certificate, but just for the purpose of verifying legal prior marriage has fully emancipated the person.
capacity based on age. Absent this, you can submit a Jurado says otherwise
o What about those between 21-25, and this is the second
baptismal certificate.
marriage, do you still need parental advice? Yes, because
If none, either:
there is no stated exception of emancipation for prior marriage,
Residence certificate
unlike for parental consent. This is not anymore based on
Instrument containing sworn declaration of
parental authority, but is based on filial love and respect from
two witnesses of lawful age testifying on this
parents.
o 2. Additional requirements:
3. What about alien applicants?
18-21: consent of parents; order
o The diplomatic or consular officials will issue a certificate of
Father
legal capacity. This is usually taken by face value.
Mother
4. What about Stateless persons?
Surviving parent
o For these people without citizenship and if they can prove that
Legal guardian (but ignore this provision,
they are political refugees, all one needs is an affidavit
since when they turn 18, there is no more
declaring oneself as having legal capacity. Again, this is taken
need for a legal guardian since he is of full
by face value.
capacity.)
What is the nature of a marriage license?
What is the nature of the consent given
by the parents? The consent is with
respect to a specific person. If the child
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o It is a license to marry a specific person. You cannot use it to o Another issue in Ninal: do the children have standing to
marry another person. The impediments and capacities of ask for the nullification of the parents marriage based on
people are different. lack of ML? The court held that the children have standing.
o There is no good faith exemption for a ML. A fake marriage BUT this has been changed when the administrative rules
license is no good. came out. Ninal was decided before these rules came out.
What is the validity of the ML? o What are the requisites:
o For 120 days, then automatically cancelled after 1. Exclusivity absence of 3rd parties
o In any part of the Philippines 2. Continuity cohabitation as husband and wife 5
o An expired license is NOT a mere irregularity but an absence years immediately preceding marriage
of a requirement. 3. No impediments during the 5 year period
3. Parties who live in a remote place
Marriages exempt from requirement of ML o Ratio: no means of transportation to get to LCR
o Not based on distance: it doesnt matter how many kilometers
What are the marriages exempt from the ML requirement? there are. What matters is lack of means of transportation.
o Means of transportation need not be public.
1. Marriages in articulo mortis.
4. Muslims and cultural minorities
o Because there is no time.
o Look into customs, rites, practices
o The only exemption is the ML. There is no exception as to
5. Marriage celebrated abroad and there is no ML requirement in the
other essential and formal requisites.
country where it was celebrated
o The solemnizing authority determines whether there is legal
For marriages in articulo mortis and where a party lives in a remote
capacity between the parties to be married.
place, the law requires that the solemnizing officer state the
o Can the solemnizing officer refuse to solemnize the
circumstances of the marriage in an affidavit. What is the effect of
marriage? Yes, the solemnizing officer has discretion to
the lack of such?
refuse. There is no law compelling solemnizing officers to
o No effect. It is merely evidentiary. It is not a replacement to
marry.
the ML requirement.
o Are marriages in articulo mortis exempt from requirement
of ML limited to those in an airplane, military operation,
Marriages celebrated outside the Philippines
etc? No. It can occur anywhere, and the ML requirement is
still waived. What is the general rule?
o If the person miraculously survives, is the marriage valid? o Art 26: Lex loci celebrationis. When the marriage is valid in
Yes. that country, it is valid in the Philippines.
2. People who have been living together as husband and wife for at Does this provision apply to marriages of aliens outside the
least five years. country?
o Purpose: to save face, because they have already presented o No. It doesnt matter, our law doesnt care. Their own national
themselves as husband and wife. laws determine whether the marriage is valid.
o When must there be an absence of impediment? The Two Filipinos get married outside the country. Do we apply Art
entire five-year period of cohabitation. (Ninal v. CA) 26?
o Yes.
12
o Art 26 only applies ONLY when at least one of the parties is a 2 Fil 1 Alien, 1 Fil Old view: not allowed to
Filipino. circumvent the law through this
What are the exceptions to this rule? NOW: the Alien is not anymore
under our jurisdiction, so he can
o Art 35 (1, 4, 5, 6), Art 36, Art 37, Art 38
obtain divorce. Then Art. 26
(1) under 18 applies.
(4) bigamous 2 Fil 2 Aliens Amor-Catalan case: recognize as
(5) mistaken identity being a divorce entered into by 2
(6) void under Art 53 aliens. Art. 26 does not apply
o All of these exceptions deal with the essential requisites of because there is no Filipino to
marriage. But as to the formal requisites, then that is equalize.
determined by the law of the place where the marriage is 1 Alien 1 Fil 1 Alien 1 Fil Art. 26
1 Alien 1 Fil 2 Aliens Valid as well
celebrated.
What if two male people get married abroad?
o No settled rule yet. Difference between void and voidable marriages:
What is the rule on divorces obtained abroad?
o If the alien obtained a divorce decree abroad allowing him to VOID VOIDABLE
subsequently remarry, then the Filipino may remarry as well. Inexistent from the beginning Valid until annulled
o Van Dorn v. Romillo and Pilapil v. Ibay-Somera Does not prescribe Generally, 5 years prescription
In Van Dorn, alien husband got a divorce abroad, but No ratification May be ratified by free cohabitation
sought to administer community property in the or prescription
No community property. Only co- ACP unless provided otherwise
Philippines. The basis of the court was estoppel
ownership.
Pilapil: she is married to you but you are not married
Directly or collaterally attacked Must be directly attacked
to her [but subject to recent rules: check
NOTE: both cases were decided before the Family discussion below]
Code
Requisites?
o 1. Marriage between Alien and Filipino
o 2. Alien files for divorce The common statement is that void marriages can be collaterally
o 3. Divorce decree capacitated the alien to remarry attacked. But what does Art. 40 say?
What if the Filipino obtains the divorce? o Art. 40 For purposes of remarriage, one has to obtain a
o Not allowed. The article only applies if the alien was the one judicial declaration of nullity.
who obtained the divorce. o So there has to be a direct proceeding. You cannot do this by
The requirement that one is an alien and one is Filipino: must it collateral attack.
occur during the time of marriage, during the time of divorce, or RULES ON STANDING re: nullity
both? o SC 02-11-10 only husband and wife have standing in a
direct action
Time of marriage Time of divorce Effect EXCEPT: a) for those commenced before 15 March
2 Fil 2 Fil X 2003, b) marriages under CC
13
EXCEPT: for intestate and testate proceedings, allow o When there is a declaration of presumptive death. Article 41 is
collateral attack the only article which provides for a situation where there can
So the rule in Ninal was technically not changed be 2 valid subsisting marriages.
o BUT the main determinant is whether the person has standing Four years for ordinary situations
(as in an heir) Two years for extraordinary situations
o In Carlos v. Sandoval, since the one questioning was the o The declaration is not of DEATH but of PRESUMPTIVE
brother of the deceased, it doesnt matter if the marriage was DEATH.
valid or not because he only inherits in default of descendants o This takes the place of the usual requirement of death
or ascendants. certificate to allow the other spouse to remarry.
The declaration of presumptive death obviously only
What are the grounds for nullity? empowers the present spouse to remarry.
o Arts. 35, 36, 37, 38 o For other grounds, any subsequent marriage is automatically
o Art. 35: null and void.
A. party below 18 years old o What if both spouses in the subsequent marriage acted in
B. solemnized by unauthorized solemnizing officer BF?
EXCEPT if either or both parties believed in The marriage is void ab initio.
GF that the officer had authority
C. no marriage license Art. 41
EXCEPT when license is not required
What if the spouse who was declared presumptively dead
D. bigamous or polygamous
reappears?
EXCEPT: see below (presumptive death)
o If no one does anything, we have a situation where there are
E. Mistake in identity
two valid subsisting marriages
F. subsequent marriage void under Art. 53
o Reappearing spouse files an affidavit of reappearance to the
Failure to partition and distribute properties
LCR
and deliver presumptive legitimes of
But other people may file an objection to the affidavit
children, and recorded in the ROP and LCR
If there is no objection: then the subsequent marriage
o Art. 36: Psychological incapacity
is deemed terminated upon filing of the affidavit
o Art. 37: Incestuous marriage (see above)
Who can file reappearing spouse or persons
o Art. 38: Void due to public policy
interested (ex. children in first marriage)
A. by blood
Legal effect: not void ab initio, just terminated
B. by adoptive relationship
o If there are objections, then a court of law must rule on the
C. by marriage
objections. The LCR cannot rule upon the objections.
D. by criminal intent
o What is the basis for objection or opposition?
When is a marriage entered into without termination of a previous
The only basis: this is an impostor.
marriage valid?
o Is there a prescriptive period for filing an objection for the
affidavit of reappearance?
These questions have not been settled yet.

14
What is required to be proved in declaration of presumptive death? There is no case yet where the court says that psychological incapacity
o Proof that there is reasonable ground to believe that the is such that he will never be able to perform marital obligations. So after
spouse has died. declaration of nullity, both parties can still marry again. So
o Republic v. Nolasco: Not enough to just ask people around and psychological incapacity is relative.
say that the people havent seen her to prove that a person is Molina: Eight point test. This is the first case where the court actually
presumptively dead. Need more than that. set down, point by point, what one should look for to establish Art. 36:
o 1) plaintiff has burden of proof to show P.I.
Mistake in identity as ground for nullity o 2) Root cause must be something medically proven and
clinically identified and clearly explained in the decision
Spirit of provision consent to marriage is for a SPECIFIC person. If This has received so much flip-flopping from other
there is mistaken identity, there is no consent. decisions
This is NOT mistake in particulars of a person (ex. you thought he was o 3) it must exist at the time of the celebration of the marriage
rich, but he was actually a pauper) o 4) the PI is incurable [from Santos case]
o 5) it is grave and it prevents him from performing essential
Psychological incapacity
marital obligations
Molina included obligations to family and children too,
One that has a lot of cases. Members of the committee who drafted the
not just to the spouse
FC did not define what psychological incapacity. They wanted
o 6) Essential marital obligations are Arts. 68-71 of FC, and Arts.
jurisprudence to develop the concept.
220, 221, 225 of FC
What is the distinction between physical and psychological
o 7) Interpretation of the National Marital Tribunal must be given
incapacity?
weight
o Psychological incapacity is NOT physical incapacity, which is
But its decision is not public in character; so its effect
impotence. The latter is a ground for voidable marriage only.
is really just to the parties, and is not jurisprudence
o It is NOT mental incapacity, which is also for voidable
o 8) The trial court must order the public prosecutor and the Sol
marriage.
Gen to act as counsel for the state
What is psychological incapacity?
Paras: This should be the case to read if you want to know what DOES
o He is normal under any other circumstance, but he cannot
NOT amount to psychological incapacity. In this case the manifestation
carry out the essential obligations of marriage
relied upon is infidelity of the spouse, going out having drinks with
o Ex. Narcissistic complex
friends, falsifying signature all these were struck down by Paras
o Inability to perform obligations to the spouse and obligations to
Marcos v. Marcos: You dont need to have a psychiatrist or
the family (220, 221, 225)
psychologist to examine the party. Absence of such is not fatal. What
Santos: It was a cut and paste case from different sources. In the end,
you need is the totality of evidence. (Totality of evidence approach)
it did not say how we should define it in the Philippines. Only value is
You can use whatever evidence to prove PI.
that it gave the 3 requirements:
Te v. Te: Courts must be allowed to make a decision on a case-by-case
o 1) gravity
basis without being tied down by the Molina requirements. This came
o 2) juridical antecedence
out strong. Molina gave us a straitjacket and we dont want this.
o 3) incurability

15
Suazo v. Suazo: You dont have to be strictly bound by cases (open o The question of nullity of a previous marriage not judicially
case policy). We are not throwing away Molina but the court must be declared void is NOT a prejudicial question to a charge of
open to situational differences. bigamy. The marriage lawfully subsists.
o The SC is not bound to accept with finality the findings of fact Mercado v. Tan
by the TC. o Subsequently getting a declaration of nullity will not invalidate a
What is the end result of all this jurisprudence? conviction for bigamy.
o It is still case-to-case. There is no set doctrine. Morigo v. People
o The parties merely signed a marriage contract on their own,
Declaration of nullity without any ceremony there is no semblance of any valid
marriage. No need for prior declaration of nullity. Bigamy
Domingo v. CA: dismissed.
o Judicial declaration of nullity only needed for remarriage. Tenebro v. CA
o Otherwise, no need for judicial declaration to establish nullity of o The subsequent declaration of nullity of the second marriage
the marriage. under Art. 36 does not negate the criminal action for bigamy.
Tamano v. Ortiz: (The mere act of contracting a second marriage during the
o RTC has jurisdiction over all actions relating to marriage and firsts subsistence is punishable.) Article 36 marriages are not
marital relations. completely without effect (ex. legitimacy of children). So this
o Jurisdiction based on allegations of the plaintiff in the means that there can be prosecution for bigamy.
complaint; not dependent on the defenses set up. The
complaint said that the parties were married under the civil Voidable marriages
code.
Ninal v. Bayadog: Grounds
o There must be no impediment or interruption in the five-year
cohabitation period in the marriage license exemption. 1. Lack of parental consent
o Declaration of nullity may be collaterally attacked after the o Who has standing?
death of either party. (Ex. heirs, in succession.) 1. Parent/guardian who did not give consent
De Castro v. De Castro 2. Party whose parent/guardian did not give consent
o As in Ninal, the nullity of a void marriage may be established o What if both parties didnt get parental consent?
even collaterally in an action not for that purpose. (ex. Both can file, separate or joint
support). Here, the affidavit stating circumstances establishing Pari delicto doesnt apply
5-year cohabitation contained false statements; hence, there o When can the party who didnt get consent file?
was no ground to exempt from ML requirement. No ML = void. Upon reaching 21 years old
o When can the action be filed?
Declaration of nullity v. bigamy BEFORE reaching 21 parent or guardian who didnt
consent
Marbella-Bobis v. Bobis UPON reaching 21, until 26 party whose parent or
guardian didnt consent
o How is marriage ratified?

16
Free cohabitation by the parties upon reaching 21. o Cant apply because there must be
o Specific rules on form of consent: previous conviction by final
Mere attendance in wedding is not automatically judgment.
consent. Must be in ML application. 2. Concealment by wife that at the time of marriage,
Consent must be before wedding. she was pregnant with another man
2. Insanity 3. Concealment of STD, regardless of nature, at time
o When should insanity exist? of marriage
Time of marriage 4. Concealment of drug addiction, habitual
o When is there a presumption of insanity? alcoholism, homosexuality, lesbianism at time of
If the party was insane right before and after the marriage
precise moment of giving consent. o N.B. No other misrepresentation is ground for fraud.
o Who may file? o Ratification?
1. Sane spouse if no knowledge of insanity Free cohabitation upon knowledge of fraud
2. Relative, guardian, etc. even with knowledge of 5. Force, intimidation, undue influence
insanity o Intimidation must be evil and imminent and based on a well-
3. Insane spouse grounded fear
o What are the periods? o What if intimidation has a legal basis?
Sane spouse 5 years from discovery of insanity of It does not count.
the other spouse [because no period was provided] Ex. I will prosecute you for rape if you dont marry my
N.B. Sempio-Dy pegs the period at anytime daughter, and the guy really committed rape anyway.
before death of either party o Prescriptive period?
Relative, guardian, etc. 5 years from cessation of cause
Anytime before death of either party o Standing?
Insane spouse 5 years from regaining sanity Injured party
[because no period was provided] o Ratification?
o How is the marriage ratified? Free cohabitation after cause ceases.
Free cohabitation by the parties upon regaining of 6. Impotency
sanity by the insane spouse o Potency must be at the point of marriage. Becoming impotent
3. Fraud after is not a ground for annulment.
o Grounds: o What if both are impotent?
1. Non-disclosure of a previous conviction by FJ of Sempio-Diy: there is no injured party
the other party for crime involving moral turpitude Dean Del: both are injured parties and can file
If the conviction is pending appeal, is the o Period?
non-disclosure fraudulent? 5 years after marriage
o No. It must be by FINAL judgment. o Cannot be ratified by cohabitation.
What if the crime was alleged in the same o NOTE: the other party must not have known it at the time of
annulment case? marriage
o What is the doctrine of triennial cohabitation?
17
If the wife is still a virgin after three years of living
together, it is presumed the husband is impotent
o What is relative impotency? Procedure and effects of termination of marriage
You are only impotent as to one person but not
another. It is still voidable. Procedure
7. Serious and incurable STD
For all cases of nullity or annulment:
o Differentiate: Here, it is serious and incurable. If it is a ground
o Court orders prosecutor or fiscal to appear on behalf of the
for fraud, it was concealed but no need to be serious and
State
incurable.
o Take steps to:
o Who can file?
1. Prevent collusion between parties
Injured party
2. Make sure evidence is not fabricated or
o Cannot be ratified by cohabitation
suppressed
No judgment based on stipulation of facts or confession of judgment
Pendency of action:
Ground Who can file When Ratification o Follow written agreement between spouses
Lack of parental Underaged party Within 5 years Yes, but only o 1. Court provides for support of spouses
consent upon turning 21 upon reaching o 2. Custody and support of common children
21 Consider mutual written agreement first
Parent, guardian Until child or No ratification by Consider best interest of children
who did not ward turns 21 subsequent
And Tender Years Doctrine
consent consent
Insanity Sane party Within 5 years of And choice of parent
discovery of Visitation rights for other parent
insanity
Insane party Within 5 years of Yes, but only in Effects
lucid interval a lucid interval
Parent or Before death of What are the effects of nullity/annulment of marriage?
guardian, either party o 1) share of party in BF over net profits forfeited in favor of:
relative of insane Common children
party If none, children of guilty spouse in previous marriage
Fraud Injured party 5 years from Yes
If none, innocent spouse
cessation of
cause o 2) donations propter nuptias: valid, except:
Force, Injured party 5 years from Yes Donations in favor of guilty spouse revoked by
intimidation, cessation of operation of law
undue influence cause o 3) designation of guilty spouse as beneficiary in life insurance:
Impotence Potent party 5 years from No may be revoked
marriage Even if deemed irrevocable
Serious and Healthy party 5 years from No
incurable STD marriage
18
o 4) spouse in BF cannot inherit from innocent spouse by testate o 3. Born of subsequent marriage which didnt comply with
or intestate succession Article 53 (registration)
o 5) if both spouses guilty, revoke by operation of law: o 4. Born before reappearance of presumptively dead spouse
Donations propter nuptias to each other When do you not have to deliver presumptive legitime?
Testamentary dispositions to each other o 1. Legal separation (because marriage not dissolved)
[N.B. these two provisions were just included because o 2. Death (failure to liquidate, etc., will only make dispositions
Art. 43 mentions an innocent and guilty spouse; in Art. post-one-year void and mandate separation of properties for
44, both are guilty] marriage #2)
What does final judgment provide? o 3. Presumptive death (which has the same effects of death)
o 1) liquidation, partition, distribution of properties of spouses
Includes adjudication of common lot LEGAL SEPARATION
o 2) custody and support of common children
o 3) delivery of presumptive legitime Grounds:
Computed as of date of final judgment
Violent stuff
Delivered through cash, property, or sound securities
o 1. Repeated physical violence or grossly abusive behavior v.
Unless there was a judicially approved
spouse, common child, or child of spouse
mutual agreement
o 2. Physical violence or moral pressure to change
Who may ask for enforcement of judgment:
religious/political affiliation
1. Children
o 3. Attempt to corrupt or induce to engage in prostitution:
2. Guardian
spouse, common child, child of spouse
3. Trustee of property Or connivance in such
Will not prejudice ultimate successional rights o 4. Attempt against the life of spouse
delivered presumptive legitimes are deemed
Character stuff
advances
o 5. Final judgment of more than 6 years in prison
What must be done with judgment, partition and distribution of
Even if pardoned
properties, and delivery of presumptive legitime?
o 6. Drug addiction or habitual alcoholism
o This must be recorded in the appropriate civil registry and o 7. Abandonment of spouse without justified cause for more
registry of properties in places where the properties are than a year
located. N.B.: after 3 months from initial abandonment, there
What is the effect of non-recording? can already be judicial separation of property (JSP).
o It will not affect third persons When a year passes, there is a ground for LS.
What is the effect of non-compliance with partition, distribution, Sex stuff
delivery of presumptive legitime? o 8. Lesbianism or homosexuality
o Any subsequent marriage is null and void o 9. Contracting bigamous marriage
Which children are legitimate? o 10. Sexual infidelity or perversion
o 1. Born before annulment
o 2. Born before Art. 36 nullity Defenses:

19
1. Collusion Court must take steps towards reconciliation of the spouses, and satisfy
o Agreement between the spouses itself that despite such efforts, reconciliation is highly improbable
o Covered by proscription of legal separation based on No decree of LS based on:
stipulation of facts o Stipulation of facts
2. Connivance o Confession of judgment
o Luring (not entrapment) Prosecutor or fiscal assigned to take steps to prevent collusion between
3. Consent parties and ensure evidence is not fabricated or suppressed
o Express or implied
o Prior to the act Effects pendente lite, of death, and after finality
o Agreement between spouses against law and morals may be
null and void, but it may be considered consent that would bar What are the effects of pendency after filing of petition?
litigation. o 1. Spouses entitled to live separately from each other
4. Condonation o 2. Administration of properties:
o Forgiveness/pardon Based on written agreement
o May be express or implied If none, court designates either or a third person
o Sexual intercourse is implied condonation Same powers and duties as those of a
But not when it was just to save the marriage, and it guardian
was unsuccessful o 3. Support of spouses
o Each sexual intercourse with another person is a separate act Lerma v. CA: The court may make a preliminary
of adultery. Forgiveness for the first does not extend to ruling of the case during its pendency, to determine
subsequent acts whether support is justified. In this case, where one
5. Mutual guilt spouse was adulterous, the court deemed it proper to
o May be on different grounds deny him support pendente lite.
o Even when one party has pardoned the other and the other Sabalones v. CA: A decree of LS was issued, where
has not the husband was denied share in the profits and
6. Prescription denying him support from the wife. The husband
o Even if not alleged, court can take judicial notice appealed. Pendente lite of the appeal, the wife filed a
o If there are multiple acts, count from the last separate act petition for preliminary injunction against the husband
o From knowledge of the ground, not just from mere hearsay alienating conjugal properties. The court said this
was valid to preserve the wifes rights in the pendency
Prescription for all: within 5 years of occurrence of cause
of the appeal
Procedure o 4. Support and custody of children
What is the effect of death of a party?
What is the mandatory Cooling off period after filing of the o The action is dismissed, since it is purely personal between the
petition? spouses
o Only try an action for LS after 6 months have elapsed since o Macadangdang v. CA: Spouse died after the decree of LS
filing of petition was issued but before liquidation. The LS was deemed final

20
o However, now Rules say that if this happens, the decision in Reconciliation
the LS case, where there has been entry of judgment is final
and binding, will be accorded such finality in the settlement of What is the procedure for reconciliation?
the estate proceedings. o Execute joint manifestation under oath
Dean Dels interpretation: Because the finding in LS o Signed by both
case is final, even in the settlement of estate, one o Filed with court in same proceeding
may invoke forfeiture provisions. What are the effects of reconciliation?
o You dont do liquidation and partition in the same LS case o 1. If proceedings pending, terminate in whatever stage
anymore when one party dies after entry of judgment. But the o 2. If final, set aside final decree
decision of the LS case is already final and binding in the o 3. What shall persist:
settlement of estate proceedings of the deceased person. Separation of property
(IMPT!!) Forfeiture of shares
What are the effects after issuance of the decree? UNLESS spouses agree to revive former property
o 1. Spouses entitled to live separately regime
o 2. Dissolve ACP or CPG What do the spouses revive former property regime?
Offending spouse not entitled to net profits o Execute joint manifestation under oath
Siochi v. Gozon: what is forfeited are net profits and o Filed in the same proceeding for legal separation
not the undivided share in the community property Copies furnished to creditors
o 3. Custody of minor children to innocent spouse Creditors protected by court
o 4. Disqualify offending spouse from inheriting by intestate o What must be specified?
succession AND revoke testamentary provisions by operation 1. Properties contributed anew to restored regime
of law 2. What are retained as separate properties of each
But if the spouse makes another will with spouse
testamentary provisions in favor of the guilty spouse, 3. Names of all known creditors (addresses, amounts)
then the latter can inherit, obviously o How does the order bind third persons?
What are the optional effects? Record order in registries of property. It will not
o 1. Innocent spouse may revoke his or her donations to prejudice a creditor not listed or notified.
offending spouse FIVE YEAR period Unless debtor-spouse has sufficient separate
Record revocations in the registries of property where properties to satisfy debtors claim
located
Alienations, liens, encumbrances prior to recording RIGHTS AND OBLIGATIONS BETWEEN HUSBAND AND WIFE
the revocation are respected
Became important due to Molina doctrine (if you cannot perform these,
o 2. May also revoke designation of spouse as beneficiary in life
insurance policy No prescription, as long as the policy exists it can indicate psychological incapacity)
Takes effect upon written notification to the insured What are the obligations?
o [N.B. so while life insurances are still optionally revocable (the o 1. Live together
rule didnt change from Art. 43/44, the difference between Art. o 2. Mutual love, respect, fidelity
43/44 and this provision donations are just revocable here] o 3. Render mutual help and support
21
Who fixes the family residence? Administration of community properties
o Jointly fixed by husband and wife
o Otherwise, court decides Who administers the community properties?
If you dont want to live in the same dwelling, what is the o Spouses, jointly (whether ACP or CPG)
consequence? When it is possible for one spouse to have administration of the
o General rule: they must live together. community property?
o If they cannot, they go to court, and ask for an exemption only o A. Before the marriage
for valid and compelling reasons. Place in the marriage settlement that the H or W
o What are the consequences of refusal to live in the same alone will administer the property.
dwelling without valid and compelling reasons? o B. During the marriage
1. Not entitled to support In case of disagreement, decision of H prevails. No
2. Charged with abandonment. need to go to court for this.
3. Transfer of administration to the other spouse What is the relief the wife can ask for in court?
What does Respect imply? Must establish in court that it amounts to
o Lack thereof can lead to criminal and civil consequences mismanagement and it prejudices the
o Includes the woman being allowed to work and exercise her community property
profession Can ask for receivership, transfer of admin,
o When can a spouse object to profession? or in extreme cases, separation of property
Valid, serious, moral grounds NOTE: NOT to overturn the husband, but to
What happens when you incur liability pursuant to this profession get certain reliefs (stated above)
objected to? Who bears the liability and charges? o C. Need approval of court
o General rule: no prior consent necessary to exercise When the other spouse became incapable to jointly
profession administer (ex. one spouse became guardian of the
o This should be the rule: other)
Before any objection absolute community N.B. only ground where there is no need for court
After objection liabilities towards separate property approval
o BUT this is what was erroneously printed: What is the rule for acts of ownership?
Before any objection separate property o Both spouses MUST give consent before it becomes valid.
After objection absolute community o Either:
o Nancy Go: obligation was charged against separate property. 1. The other spouse must give written consent, or
Principle: because this is a separate endeavor by the liable 2. There must be court order
spouse and the contract cannot bind both spouses. (This is o What are examples of acts of ownership?
the fall back analysis) Ex. selling the house.
Support of the family comes from: Ex. making donation, except for small donations
o 1. Community or conjugal property o What is the effect if one of the spouses does not give
o 2. Income from separate property consent to these acts?
o 3. Separate property 1. Its void, but

22
2. It is a continuing offer from the spouse who gave o No, it must be the parties themselves who enter into the
consent and the third party. It can be validated by the contract.
objecting spouses consent. o If a party is 18 to below 21 years old, the parents must be part
o How much time does the non-consenting spouse have? of the marriage settlement.
The law does not provide. When can there be a change of property regime?
But the parties (consenting spouse or third party) may o 1, Separation of property
withdraw the offer any time. o 2. Legal separation
What are the rules on donations? o 3. Ordinary dissolution
o A. To each other What are the formal requisites for MS?
General rule: void o 1. In writing
o B. To third party What kind of document is needed?
Must be a joint act Private/public document, but it must be
Except: moderate donations for charity or family public document for it to be registered
rejoicing What if its not in writing?
o C. To the children Unenforceable
Valid as long as it is for education, etc. But it would Can compel to be reduced to writing
need consent of the other spouse, because its still an o 2. Signed by the parties
act of ownership. N.B. General rule is ONLY the future spouses are
Otherwise, still valid, but charged to the separate parties to the MS
property of the other spouse. o 3. Executed before the marriage
Who manages the household? o 4. Those who need parental consent must make parents party
o It is a joint role between both spouses. to the MS
Otherwise, MS is void (for lack of consent)
o 5. If under civil interdiction or disability, must make guardian
PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE party to the MS
Otherwise, MS is void
What governs the property relations between the spouses?
o Is there need for judicial approval for a marriage
o 1. Marriage settlement (MS) executed before the marriage
settlement?
o 2. FC provisions
No. Only need to register with the civil registrar to
o 3. Local customs
bind third persons
When can you enter into marriage settlement?
How can a MS affect third parties?
o Anytime before you celebrate marriage.
o 1. All above requirements
o What are the additional requirements?
o 2. MS registered in LCR where marriage contract is recorded
Legal capacity to enter into contracts
and in the property registries of property
The marriage must take place after
o N.B. or else, as to these third persons, ACP will be presumed
Can the parents enter into a marriage settlement on behalf of
to govern
minor children?
Rule if marriage does not take place:

23
o Everything stipulated in MS in consideration of future marriage o Any modification in marriage settlements must be made before
is void the celebration of marriage.
Including donations between respective spouses o Exception: judicial separation of property
contained therein In any case, the only change is from ACP/CPG
o Does NOT invalidate stipulations that do not depend on CSP, with court approval
celebration of the marriage. There can be no situation where CSP changes to
ACP or CPG because what is only allowed is revival
What are the Choices for property regime? of the old property regime
o 1. ACP o What is the status of an extrajudicial agreement between
o 2. CPG spouses to separate their properties?
o 3. CSP Void
o 4. Other regime What governs property relations between the spouses?
When does ACP govern? o Philippine laws, regardless of place of celebration of marriage
o 1. When it is expressly chosen and regardless of residence
o 2. When none is chosen o In absence of contrary stipulation in MS
o 3. When regime chosen is void. o Exceptions:
o Examples of void provisions: 1. Both spouses are aliens
Prohibited one party from marrying another, or a 2. Extrinsic validity of contracts affecting property
second marriage for surviving spouse located abroad, executed there
Spouses live separately 3. Extrinsic validity of contracts affecting property
Imposing fine on infidelity located abroad, executed here
Depriving parties from asking for LS when there is
sufficient ground to do so Donations by reason of marriage
Third person will manage conjugal properties
All properties of the wife belong to the husband Requisites of a valid donation propter nuptias?
N.B. Invalidity of some provisions will not nullify valid o 1. Made before marriage
ones. o 2. In consideration of the marriage
What properties are covered by the regime? o 3. To one or both of future spouses
o When a regime is chosen, all properties are governed by that
Donations propter nuptias (DPN) Ordinary donations
regime. Cannot exclude particular properties from the regime.
Does not require express Requires express acceptance
What if the parties expressly rejected ACP but did not agree on any acceptance
system to govern? May be made by minors Cannot be made by minors
o Determine intent of the parties. If it cannot be ascertained, May include future property (if done Just present property
then apply local custom. When there is no local custom, apply by either of the spouses); if done by
co-ownership. other persons, just present property
When can modifications in MS be done? If present property donated by a Only limit: non-impairment of
spouse and regime is not ACP, legitimes
limited to 1/5. If future property

24
donated by a spouse, limit is on non-
impairment of legitimes.
Grounds for revocation in FC Grounds for revocation in CC What are the grounds for which a donor may revoke a DPN?
o 1. Marriage not celebrated, or declaration of nullity
What is the limit on donations made by a spouse to the other in an o 2. No consent of parents or guardians to the marriage
MS? o 3. Marriage annulled and donee is in bad faith
o If future spouses agree upon regime other than ACP, cannot o 4. Legal separation and donee is guilty
donate to each other in MS more than 1/5 of present property. o 5. Resolutory condition
Excess: considered void o 6. Acts of ingratitude
o Why other than ACP? Prescriptive periods to revoke:
In ACP, their properties will become part of AC
anyway (except for some) Ground Period Remarks
What governs donations of future property in the MS? Marriage not DPN in MS, no The written and oral
o Governed by law on wills celebrated; declaration marriage takes place: donations that
o Therefore, these are revocable, unlike donation of present of nullity operation of law arent revoked by
Nullity, donor is operation of law just
properties in MS
spouse, donee in BF: follow the general
What is the rule on property subject to encumbrances? operation of law civil code rules on
o Property subject to encumbrances can be donated. Written donation: 10 prescription
o If foreclosed to secure an obligation: years (because theres no
In case of deficiency, donee not liable for difference Oral donation: 6 years marriage under law)
In case of excess, donee entitled to difference No consent of parents 4 years Expressly provided
When will a DPN be revoked by operation of law (Arts. 43, 81) and or guardians period
when will it be by option (Art. 86)? Annulment, donee in Donor is other spouse: Expressly provided
BF operation of law period
Article 43 Article 81 Article 86 Otherwise: 4 years
Marriage not Legal separation, 5 years Almost everything
N/A DPN made in an DPN not in an
celebrated donee is guilty related to legal
MS: void if there SM: revocable
separation has a 5-
is no resulting
year period
marriage
Marriage Revoked by N/A Revocable;
Resolutory condition Written donation: 10 Contract law
celebrated, but operation of law everything else years
terminated after if donee is in bad is covered here. Oral donation: 6 years
faith, and donor Even if youre Acts of ingratitude 1 year from knowledge of
is the other the spouse in the fact
spouse GF, some
donations are
revocable under What are the acts of ingratitude covered?
Art. 86 (ex. void o 1. Offense against person, honor, or property of donor, spouse,
ab initio children under parental authority
marriage)
25
o 2. Donee imputes to donor criminal offense or any act involving When does ACP commence?
moral turpitude, even if proven o Precise moment of celebration of marriage
Except if act is against donee, spouse, children under o Any stipulation which makes the commencement at any other
authority time is VOID
o 3. Donee unduly refuses to support donor when legally or Basic concept:
morally bound to do so o Upon marriage, all properties brought into marriage and
What is the status of donations during marriage between the acquired during marriage are included in ACP
spouses? o Upon dissolution, the entire common mass is divided between
o Void. the spouses
o Except: moderate gifts on family rejoicing Contra: in CPG, only the net profits are divided
Determined by social position of the family, and between them
customs Waiver of rights, interests, shares, and effects of ACP:
o What about those who are merely living together as o Disallowed by law.
husband and wife without valid marriage? o Except during:
Same prohibition 1. Judicial separation of property
Examples: 2. Dissolution of marriage (ex. death) or annulment
Common law marriage thereof
Adulterous relationship o How is this done?
o What does the prohibition cover? 1. In a public instrument
Grants of gratuitous advantage, direct or indirect 2. Recorded in LCR
Ex. donation to a child of the other spouse by another o What is the recourse of prejudiced creditors of the waiving
marriage (since if the child dies, the other spouse spouse?
inherits) May petition to the court to rescind the waiver to
Who has standing to question the validity of the donation between extent of amount sufficient to cover credits
spouses? What is included in the AC?
o ONLY persons prejudiced, like the donor or his heirs o All properties belonging to spouses before marriage and during
Case: Husband donated a car to his wife. The wife marriage
insured it. It was destroyed and the wife sought to o Cannot exclude specific properties from the community
collect insurance. The insurance company What are excluded?
challenged the validity of the donation. HELD: The o 1. Property acquired during marriage by gratuitous title
insurance company has no standing to question, (donation, succession)
since it has no rights or interests over the car in As well as its fruits and income
question. Except: if the donor expressly provides that the
o Donor has standing since there can be a case where a property is included in the AC
stronger spouse takes advantage of the weaker one o 2. Property for personal and exclusive use by either spouse
Except jewelry
Absolute Community of Property (ACP)

26
o 3. Property acquired before marriage of spouse with legitimate Includes installment-basis property, if
descendants from prior marriage ownership vested before marriage (but
Exclude fruits and income as well reimburse CP for payments on installments)
What is the presumption? Includes property alienated before marriage
o Property acquired during marriage are presumed to be but reacquired through rescission,
included in the AC, unless proven otherwise annulment, or revocation of contract
o There must be strong, clear, and convincing evidence 2. Acquired during marriage through gratuitous title
Apply rules on co-ownership, suppletorily Includes unearned increments
Includes moral damages (but not
Conjugal Property of Gains (CPG) hospitalization expenses, medical
assistance, or loss of salary)
When does CPG apply?
o Property by substitution:
o 1. Chosen by the spouses in the MS 3. Acquired by right of redemption, barter, or
o 2. Marriages under NCC by default exchange of exclusive property
What is included in COMMON FUND?
If money used for redemption was CP, just
o 1. Fruits, income, proceeds, products of separate property reimburse CP
o 2. Acquired through their efforts 4. Purchased with exclusive money of wife or
o 3. Acquired through chance husband
What is the rule upon dissolution of CPG? What about exclusive property that is alienated under pacto de
o Divide net gains equally, unless they agreed to a different retro and then subsequently repurchased?
division in the MS o Still exclusive. If the other spouse paid for the redemption, he
What is the nature of the spouses right over conjugal property? can be reimbursed.
o Each spouse has a mere inchoate right over conjugal property: Who manages exclusive or separate properties?
Cannot alienate of the interest. o 1. The spouses retain ownership, possession, administration,
Cannot be attached by creditors. enjoyment of exclusive properties
o Only ripens into actual title upon dissolution and liquidation of o 2. May mortgage, encumber, alienate, or dispose separate
partnership. property without consent of other spouse.
Apply same rules on: o 3. May appear in court alone to litigate it.
o 1. Commencement: upon precise moment of marriage o What is the exception?
o 2. No waiver of rights, shares, interest unless in JSP or May transfer administration to other spouse (or even
dissolution, and only in public instrument recorded in LCR another person) by public instrument recorded in
Apply rules on contract of partnership, suppletorily ROP, where located
o If the CP is not enough, use separate properties Alienation of the property terminates administration by
o But unlike ordinary partnership (pro rata), liability is solidary the other spouse. Obviously, proceeds go to the
What are exclusive properties in CPG? owner-spouse
o Property by direct acquisition as exclusive: For joint donations of property to the spouses, who owns the
1. Brought into marriage as his or her own property?

27
o If shares therein are designated, those shares are their But losses borne exclusively by the loser
exclusive property spouse
N.B. Because the disposition is gratuitous o By presumption
o If no designation of shares, it is 50-50 1. All property acquired during the marriage is
o When does right of accretion exist? presumed to be conjugal unless contrary is proved
1. when one spouse refuses to accept Rules on life insurance:
2. incapacity to accept o General rule:
3. predecease or death before perfection of donation The right to annuity itself is considered the exclusive
What about onerous donations? property of the purchasing spouse.
o Still exclusive property of donee-spouse The monthly pensions are conjugal.
o But reimburse CP for advances made o If the beneficiary is the insured himself or his estate:
What is the presumption? If paid out of conjugal funds, proceeds are conjugal
o All property acquired during marriage is presumed to be If paid out of separate funds, proceeds are separate
conjugal. If part conjugal, part separate, proceeds are part
o Regardless of registration. conjugal and part separate
Specific enumeration of conjugal property: o If the beneficiary is the other spouse
o Acquired by efforts Proceeds belong to the beneficiary spouse, even if
1. Those acquired by onerous title through common paid out of conjugal funds
fund, even if placed in the name of one spouse Deemed a donee of the premiums paid.
2. Obtained from labor, industry, work of either (Must return of premiums to conjugal
spouse partnership)
3. Acquired through occupation such as hunting or If both spouses are jointly insured in a single policy,
fishing proceeds belong to the surviving spouse (obviously),
o Fruits of property even if paid from conjugal funds
1. Fruits (natural, industrial, civil) of common property No obligation to return of the premiums,
2. Net fruits of exclusive property of each spouse because it is deemed a reciprocal donation
Net fruits only because use the income first If the insured is a third person, then the beneficiary
to pay for administration, preservation, etc. spouse owns it as separate property (deemed a
3. Livestock in excess of number of each kind brought donation)
into the marriage of each spouse On benefits, pensions, annuities, usufructs, etc.:
Only matters upon dissolution o General rule applies.
o Chance Gratuitous = exclusive;
1. Share of either spouse in hidden treasure Onerous = conjugal.
Even if it belongs to the exclusive property of o Annuities:
either spouse, because effort was involved The annuity itself (ex. purchased for P100K) is
2. Acquired by chance exclusive property

28
Pensions from that annuity (ex. P5K a month) is o Goes against usual rules on accession (accessory follows the
conjugal principal), which doesnt care about value
o Usufruct: o If the land is separate property, in CPG, whichever is more
The harvests or fruits of the land given as usufruct is valuable becomes the principal
conjugal So if the conjugal house is more valuable than the
o What is the determining factor? separate land, then the land becomes conjugal upon
If it was given out of pure liberality, then consider it reimbursement during dissolution
gratuitous (exclusive) o When should reimbursement be made?
If it is a pension, which is given for services rendered, Not required UNTIL there is liquidation of the CP
then it is onerous (conjugal) property.
Special cases: But there is no prohibition against early
o For SSS, the beneficiary is the exclusive owner of the reimbursement.
proceeds o BUT change in ownership only vests upon respective
o Intellectual property like copyright and patent is the exclusive reimbursements, which only happens during liquidation of the
property of the creator-spouse (since it is part of ones person partnership
and is just external manifestation of his genius) Determine whether there is a change in ownership
For loans and credit: upon the time the improvement was made
o Principal is exclusive property of lending spouse, if from own o If the land is conjugal, the usual rule on property applies (the
money land is always the principal)
o Interests falling during marriage is conjugal property o What if the house gets destroyed prior to liquidation of the
On tips received by waiters, etc.: partnership?
o Service charge entitled to it, so conjugal (onerous) There is no conversion because conversion only
o Beyond the service charge it is separate (gratuitous) happens upon reimbursement during liquidation.
On damages:
o If actual damages conjugal Charges upon the ACP/CPG
But can be separate if losses are based on losses
ACP CPG
from separate/exclusive funds
Support of: a) spouses, b) common Same
o If moral, etc. separate because these are paid for suffering, children, c) LC of either spouse
etc. and not actual loss Debts and obligations: a) contracted Same
Rule on fruits? by both spouses, or b) by one
o Fruits from conjugal property gross fruits belong to conjugal spouse for benefit of community
property Expenses, taxes, repairs: a) major or Same, except for: b) for mere
o Fruits from separate property net fruits (total fruits minus minor upon CP; b) for mere preservation during marriage of
preservation during marriage of separate property (no qualification
expenses incurred) are conjugal
separate property used by the family because the family already benefits
Compare with ACP? There, fruits from separate from the fruits of these)
properties are always separate Expenses for: a) either spouses Same
Rule on improvements? self-improvement b) what both

29
spouses donated or promised to o It is deemed as not redounding to the benefit of the AC/CP
common LCs self-improvement because while there can be incidental benefits (e.g. increase in
Ante-nuptial debts of either spouse Same goodwill) the benefit is not directly redounding to the AC/CP.
that redounded to the benefit of the
family Administration of property
Expenses of litigation between Same
spouses, unless found to be CONJUGAL PROPERTY
groundless
If exclusive property is insufficient, N/A
Who administers conjugal property?
but subject to deduction of share of
debtor-spouse upon liquidation: 1) o The spouses, jointly
ante-nuptial debts not redounding to What if there is disagreement?
benefit of family; 2) support for o Husbands decision prevails
illegitimate children; 3) liabilities due o But wife may file for proper remedy within 5 years of contract
to crime or quasi-delict implementing the decision
No need to prove first that
What is one spouse is unable to participate or is incapacitated?
the other obligations of the
AC have been covered o The other spouse may assume sole powers of administration
(unlike in CPG where the (with no need for judicial declaration)
other charges must first be What is not within the scope of powers of the sole-administrator-
covered), because usually spouse?
there are no separate o Does not automatically include power to encumber or dispose,
properties in ACP unless:
1. With consent of other spouse in writing
2. With judicial authorization
What is the rule when community property is insufficient to cover
o Without this, deemed void. But it is a continuing offer on the
for expenses (except for the last one, which has a special rule)?
part of the offering spouse and the third person. Perfected by
o The spouses are solidarily liable with separate properties for
other spouses consent or judicial authorization.
unpaid portion
What is the nature of the other spouses consent
o Reimbursement from AC due upon liquidation.
that is needed?
What is the difference in rules for debts not redounding to the
It must be written consent because mere
benefit of the family, support of IC, and liabilities for quasi-delicts
participation or awareness in the negotiation
and delicts?
is not enough.
o For ACP: No need to prove first that the other obligations of the
o What if the other spouse is not incapacitated or is not
AC have been covered
unable to participate in administration, can the other
o For CPG: Will only be covered by CP after covering other
spouse obtain judicial authorization to dispose?
charges
No. The judicial recourse is available only when the
What is the nature of one spouse acting as surety or guarantor to
other spouse is incapacitated or cannot participate.
another obligation?
Can a spouse make donations alone?

30
o No. He or she cannot make donations from 4. LS
community/conjugal property unless with other spouses 5. Judicial separation of property
consent What is Voluntary dissolution of regime?
o Exception: o May be jointly filed in a verified petition by the parties
MODERATE donations for charity or family o What is specially required for a voluntary dissolution?
rejoicing/distress Notify all creditors. Court takes measures to protect
What may be disposed by will? them.
o Interest in community property, but not specific properties Compare abandonment to separation in fact?
therein o Separation in fact is physical separation. It can be with or
without just cause (if without just cause, no right to be
EXCLUSIVE PROPERTY OF SPOUSES supported). It doesnt follow that when there is de facto
separation that the spouse is not complying with marital
What is the general rule? obligations. Abandonment implies failure to comply with
o Spouses administer their exclusive properties familial obligations too.
When can the courts transfer administration of exclusive property o What is abandonment?
of one spouse to the other? Left conjugal dwelling without intention of returning
o 1. One becomes the others guardian Prima facie assumed if one left conjugal dwelling for 3
o 2. Spouse judicially declared an absentee months or failed to give any information about his
o 3. Spouse sentenced to penalty carrying with it civil interdiction whereabouts for same period
o 4. Spouse becomes fugitive from justice or in hiding as How does separation in fact affect the property regime?
accused in criminal case o 1. Spouse who leaves conjugal home without just cause loses
o N.B. Distinguish this from administration of conjugal property right to demand support
where there is no need for court approval to assume o 2. When consent is needed from that spouse by law, judicial
administration authorization is in summary procedure
What if the other spouse is incompetent, has conflict of interest, or o 3. In absence of sufficient community property, separate
there is similar other just cause? properties of spouses are solidarily liable for support.
o The court can appoint some other person as administrator The present spouse, in summary proceedings, may
N.B. Administrating spouse cannot dispose of other spouses separate be given judicial authority to administer or encumber
properties specific separate property of the other spouse and
use fruits/proceeds to cover absent spouses share.
Dissolution of ACP/CPG same rules
Contra: Abandonment by one spouse, or failure to comply with familial
obligations (marital, parental, property)
What are the grounds to dissolve the regime?
o Aggrieved spouse may petition court for:
o Where marriage is dissolved:
1. Receivership
1. Death of one party
2. Judicial separation of property
2. Nullity
3. Sole administration of the AC/CP
3. Annulment
o Where marriage is not dissolved: Liquidation of ACP/CPG and liabilities
31
ACP CPG Simultaneous liquidation of two marriages contracted before
1 Inventory of assets (community, Inventory of assets (community, Family Code of 1988:
exclusive) exclusive) o Default: divide property depending on agreement
2 Credit CP with amounts advanced o If none: Determine the capital, fruits, income of each
to spouses personal obligations
community prove by evidence
3 Reimburse spouses for:
1. Exclusive funds used for o If there is doubt: Divide between two communities in proportion
acquiring conjugal to capital and duration of each
property o When does this apply?
2. Value of exclusive In a situation as in where H and W got married, W
property converted to died, but H did not liquidate. H gets married to W2,
conjugal property and then their marriage is dissolved. Liquidation
4 Pay community debts from assets Pay community debts from assets
would be simultaneous.
5 Deliver remaining exclusive Deliver remaining exclusive
property property NOTE, however, that this will not happen under the
6 CP pays spouse for deteriorated FC because if there is no liquidation of the first
movables that benefited family marriage, the second marriage is under mandatory
(unless indemnified elsewhere) regime of CSP.
7 Deliver net assets of community, Deliver net assets of community, For CPG support during liquidation:
considering, if present: considering, if present: o Taken from fruits and income pertaining to their shares in
1. Agreement (equal by 1. Agreement (equal by properties under liquidation
default) default)
2. Waiver of share 2. Waiver of share o If the support exceeds fruits and income pertaining to them
3. Forfeiture by spouse in 3. Forfeiture by spouse in excess is considered advances on shares
BF BF o If the liabilities of the CP exceed the assets, SS is not entitled
8 Deliver presumptive legitimes Deliver presumptive legitimes to any support during liquidation
9 Deliver conjugal dwelling and lot to Deliver conjugal dwelling and lot to
spouse with majority of children spouse with majority of children Separation of properties during marriage

Rule on dissolution by death (ACP and CPG): What is the general rule?
o Liquidate in judicial estate settlement proceedings o Separation of property can only take place by judicial order
What if there is no judicial estate settlement proceeding? (even voluntary separation)
o Within one year, must: o Either: voluntary or for sufficient cause
1. Judicially liquidate AC/CP, or 1. List of sufficient causes (see below)
2. Extra-judicially liquidate AC/CP 2. Voluntary dissolution
o What if there is no liquidation within the one year period? 3. Mandatory regime of CSP
Any disposition or encumbrance of the Grounds for judicial separation of property:
community/conjugal property is VOID o [Judicially declared grounds]
o What if there is subsequent marriage without liquidation? o 1. Civil interdiction
Mandatory regime of CSP for the subsequent o 2. Judicially declared an absentee
marriage o 3. Judicial declaration of loss of parental authority
32
o [Those that have to be proved] When does CSP apply?
o 4. Abandonment by spouse or failure to comply with familial o Chosen through MS
obligations What are the kinds of separation of property?
o 5. Administrator-spouse has abused privilege o Extent:
o 6. At time of petition, spouses are sep-in-fact for at least 1 year 1. Total
and reconciliation is highly improbable 2. Partial: those not agreed upon as separate shall be
o N.B. For grounds 1, 2, and 3 enough to present judicial AC property
declaration o As to kinds of property:
Procedure for voluntary separation: 1. Present property
o 1. Spouses file verified joint petition to court 2. Future property
o 2. Petition lists all creditors 3. Both
o 3. Creditors personally notified What are the rules in administration and ownership?
No need for publication o Each spouse administers and owns, disposes, encumbers, etc.
o 4. Pendency: AC or CP supports spouses or children own property without others consent
o 5. Court enters decree to convert regime to CSP o Each spouse gets his earnings from profession, business, and
o 6. Record in LCRs and registries of property all fruits from property
What are the effects of separation of property? How are family expenses borne?
o 1. Liquidate old property regime and apply CSP o Borne by both spouses, in proportion to income
o 2. Creditors not prejudiced o In case of insufficiency or default: in proportion to market value
Spouses still solidarily liable with separate properties of separate properties
to creditors What is the rule on liability to creditors?
o 3. Mutual obligation to support still continues unless there was o Liability is solidary [note!]
legal separation
How can there be revival of prior property regime? PROPERTY REGIME OF UNIONS WITHOUT MARRIAGE
o File motion in court for decree of revival
o When can there be a revival: Parties capacitated to marry and living together exclusively (147)
1. Civil interdiction terminates
2. Absentee returns Requisites for 147?
3. Court satisfied that abusive admin will not abuse o 1. Man and woman capacitated to marry each other
again o 2. Live exclusively with each other as husband and wife
4. Parental authority restored o 3. Without marriage or under void marriage
5. Abandoner returns o 4. Both have no existing valid marriage with someone else
6. Separated-in-fact spouses resume common life Who owns wages and salaries?
7. Agreement, after voluntarily dissolving regime o Owned in equal shares
NO voluntary separation may be granted Who owns property acquired jointly through work or industry?
again o Governed by co-ownership (proportionate ownership)
Thus, according to shares actually put in
CSP Regime o What is the presumption?
33
Party who did not participate in acquisition of property o Share in co-owned properties accrue to AC or CP of prior
contributed jointly, through care and maintenance of marriage
family and household o If party in BF, forfeit shares to:
o Where does this rule not apply? 1. Common children
1. Gratuitous title 2. Descendants of that child in case of predecease
2. Acquired in exchange for exclusive properties 3. Innocent party
When can there be disposition of properties owned in common? o If both are in BF rules on forfeiture still apply. [Dean Del:
o Cannot dispose unless with consent of the other (this is so magpapalitan lang sila ng property.]
different from normal co-ownership)
o Until termination of cohabitation THE FAMILY AND FAMILY HOME
What is the rule on termination of cohabitation if marriage is void,
and only one party is in GF? Which relations fall under the family?
o Share of party in BF in co-ownership forfeited in favor of: o 1. H and W
1. Common children o 2. Parents and children
2. In case of predecease of common child, to o 3. Ascendants and descendants
descendants of that child o 4. Brothers and sisters, whether full or half-blood
What is the special pre-requisite for suits between family
Repudiation leads to representation for
members?
descendants
3. If none, to innocent party o Prior earnest efforts to compromise
o Forfeiture upon termination of cohabitation What are exceptional cases, because they cannot be
compromised?
Parties not capacitated to marry or not living together exclusively (148) o 1. Civil status of persons
o 2. Validity of marriage/LS
To which does this apply to? o 3. Ground for LS
o 1. Bigamous marriages o 4. Future support
o 2. Adultery or concubinage o 5. Future legitime
o 3. Both man and woman are married to other persons o 6. Jurisdiction of courts
o 4. Multiple alliances of same married man Who may constitute a FH?
What properties are owned in common? o Jointly by spouses
o ONLY properties actually acquired by joint contribution are o Unmarried head of family
owned in common, proportionate to contributions. So: Can FH be on rented land?
Wages and salaries are EXCLUSIVE o No. The implication is a FH must be permanent, and hence
Care by other party to home, children, etc. or moral must include the land.
inspiration is not included What is the exemption of a FH?
o What is the presumption for actual contributions? o It is exempt from execution, forced sale, or attachment to the
Actual contributions deemed to be equal value allowed by law
If one party is married to another: o Except:
1. Non-payment of taxes
34
2. Debts prior to constitution of FH Children by nature
3. Debts secured by mortgage on the premises before
or after construction A. Legitimate:
4. Debts due to laborers who constructed or rendered o 1. Conceived OR born during marriage of parents:
materials for the building o 2. Children conceived through artificial insemination of wife
How is a FH constituted? Either with sperm of husband, of a donor, or both
o Automatic, by operation of law o What is the special requirement for artificially inseminated
But this provision of the FC does not retroact to FHs children?
constructed prior to 3 August 1988 Husband and wife must both authorize or ratify
o Only one FH allowed procedure in a written instrument
o Value must be: Record it in the civil registry, with birth certificate
300K for urban areas before the birth of the child
200K for rural areas B. Illegitimate:
Who are the beneficiaries of a FH? o Those conceived AND born outside valid marriage
o 1. H and W or the unmarried head of family o Exceptions?
o 2. Ascendants, descendants, brother and sisters (whether 1. Void marriages where solemnizing officer had no
legitimate or illegitimate) who are actually living in the FH and authority, but at least one spouse in GF
dependent on the head for support 2. Art. 36 nullity
How is a FH sold? 3. Art. 53 nullity
o By the owner, with written consent of person constituting it, the C. Legitimated
latters spouse, and majority of beneficiaries of legal age o Who can be legitimated?
What if one of the spouses (or both) or the unmarried head die? Children conceived and born outside of wedlock of
o The FH continues for 10 years or as long as there is still a parents NOT disqualified by any impediment to marry
minor beneficiary each other
o Heirs cannot partition it unless there is compelling reason for it 2009 amendment: if the only impediment is age, then
What if the FH increases in value beyond that allowed by law? the child can be legitimated
o If it is due to voluntary improvements introduced by the owners o How are they legitimated?
or beneficiaries, then the FH can be executed. Through subsequent valid marriage between the
parents
PATERNITY AND FILIATION N.B. Annulment of voidable marriage does not affect
o What is the effect?
Kinds of filiation 1. Effects retroact to time of childs birth
2. Legitimation of children who died before the
1. By nature marriage benefits descendants
o Legitimate So it can benefit a dead child with his own
o illegitimate descendants
2. Adoption o Who can file an action to impugn legitimation?
Only by those prejudiced in their rights
35
Ex. testamentary and intestate heirs o B. Private handwritten instrument
Creditors excluded because they only step and signed by parent concerned
into the picture when there is repudiation of Secondary methods:
inheritance by heirs 1. Open and continuous possession of status
From five years from time their cause of action arises of legitimate child
Cause of action accrues from death of 2. Other means in ROC and special laws
putative parent (From minutes of committee o When must action to claim legitimate filiation be filed?
meeting) 1. By child, during his or her lifetime
B and G are college sweethearts in Manila. When they graduated, 2. Transmitted to heirs (for up to 5 years), if:
G was 7 months pregnant. Unknown to G, B promised to marry his Child dies during minority
childhood friend C in Cebu after graduation. 2 months before B Or in state of insanity
and C married, G gave birth to W. During B and Cs marriage, C N.B. Action filed by child survives even if either party
gave birth to X. Unbeknownst to C, whenever B has a business dies
trip in Manila, he still sees G and because of this, G gave birth to Y. o What are the methods to claim illegitimate filiation?
Unbeknownst to B, when hes away, C has relations with the Same way, and with the same evidence as legitimate
plumber, P. C gave birth to Z. C died. Afterwards, B and G got filiation
married. What is the status of the children? o When must action to claim illegitimate filiation be filed?
o 1. W is legitimated, because W was born when B and C were 1. PRIMARY methods: up to childs lifetime
not yet married, so there was no impediment. The subsequent 2. SECONDARY methods: up to alleged parents
marriage of B and G legitimated W. lifetime
o 2. X is the legitimate child of B and C. G is Xs step mother. o H and W were married and during their marriage, children
o 3. Y is the illegitimate child of B and G because Y was A and B were born. X, in a notarized instrument,
conceived and born outside of valid marriage. acknowledged A and B as his illegitimate children. X died.
o 4. Z is the legitimate child of B and C. Even if P was the real On the strength of this declaration, A and B sought to
father, Z was conceived and born within a valid marriage and participate in the settlement of Xs estate, which the heirs
will remain that way until or unless B impugns his legitimacy. of X contested. Does the acknowledgement of illegitimacy
NOTE: the rule is different from Y, because in Ys hold water?
case, its obvious that C was not the mother. Its No. Both A and B were conceived/born under a valid
more difficult in the case of fathers. marriage and are thus legitimate. Recognition of
illegitimacy, even through proper means, cannot
Actions regarding filiation defeat presumption of legitimacy of children, which
was not impugned by H in this case.
A. To claim filiation B. To impugn filiation
o What are the methods to claim legitimate filiation? o How may the legitimacy of a child be attacked?
Primary methods: ONLY in a direct action or proceeding. (Sayson v. CA)
1. Record of birth in civil registrar o Who may impugn a childs legitimacy?
2. Admission of legitimate filiation in: 1. Husband ONLY, by default
o A. Public document or
36
2. Heirs of husband, if: B. 2 years, if residing in Philippines but not in place of
A. Husband dies before expiration of period birth or recording
fixed to bring action C. 3 years, if abroad
B. Husband dies after filing complaint, and If birth concealed or unknown, when do you start
did not desist counting the period?
C. Child born after death of husband From knowledge of birth or recording,
o What are the only grounds to impugn a childs legitimacy? whichever came first
1. Physically impossible for H to have sexual o Considered legitimate even if:
intercourse with W within first 120 days of 300 days Mother declared against its legitimacy
(first 4 months of the 10 months) which immediately Or mother has been sentenced as adulteress
preceded birth of the child; due to: Mother contracting a second marriage within 300 days (10 months)
Physical incapacity of H to have sexual after termination of first marriage:
intercourse with W o Child belongs to the first marriage if:
H and W living separately, and sexual Child born within first 180 days (6 months) after
intercourse not possible second marriage is solemnized
Serious illness of H preventing sexual AND MUST BE within 300 days after first marriage
intercourse with W terminated
2. Proved through biological or scientific reasons, that o Child belongs to the second marriage if:
the child could not have been that of the H Child born after 180 days after second marriage
Human Leukocyte Antigen (HLA) test solemnized
conclusive determination (Even if within 300 days after first marriage
Blood tests can disestablish paternity terminated)
DNA tests A.M. No. 06-11-5-SC So the rule is: BOTH periods must concur for the first
o CONCLUSIVE of non-paternity marriage to have the child. Else, second marriage
o If probability of paternity value is wins.
less than 99.9% = corroborative o N.B. these are mere presumptions. And regardless, the child
o If probability of paternity value = will be legitimate
99.9% or higher, then it creates a o What about children born after 300 days (10 months) of
termination of the first marriage?
disputable presumption of paternity
3. Artificial insemination with no written authorization No default status. Up to the one alleging legitimacy or
or ratification illegitimacy.
Or gotten through mistake, fraud, violence,
ADOPTION
intimidation, undue influence
o What is the period to impugn? RA 8552
A. Within 1 year from knowledge of birth or recording
in civil register: if husband (or heirs) resides in city Who may adopt:
where birth took place or was recorded

37
Filipino adopter Alien Alien under Inter- Alien: (same, capacity, residence, age, no abuse)
country adoption act o 1. SAME as above
18+ years old 27+ years old 27+ years old o 2. Certified by diplomatic/consular office that he has legal
At least 16 years older At least 16 years older At least 16 years older capacity to adopt under his laws and that the country allows
than adoptee (subject than adoptee (subject than adoptee (subject
the adoptee to become his son/daughter
to exceptions) to exceptions) to exceptions)
Full civil capacity Legal capacity to adopt Legal capacity to adopt o 3. Country has diplomatic relations with Philippines
certified by diplomatic certified by diplomatic o 4. Living in Philippines at least 3 years before adoption
or consular office or consular office application, and maintains residence until adoption decree
Country has diplomatic Country has diplomatic entered, except:
relations with the relations with the 1. Former Filipino who seeks to adopt relative by
Philippines Philippines consanguinity within 4th degree
GMC, not convicted of GMC, not convicted of GMC, not convicted of 2. Adopting legitimate son/daughter of Filipino spouse
crime involving moral crime involving moral crime involving moral
turpitude turpitude turpitude 3. Married to Filipino spouse and seeks to jointly
Agrees to uphold adopt a relative by consanguinity within 4th degree of
relevant UNCRC, Filipino spouse
Philippine law, R&R of o 5. At least 27 years old and 16 years older than adoptee at
inter-country adoption time of application
Emotional and Emotional and Emotional and Guardians, with respect to their wards:
psychological capability psychological capability psychological capability o 1. After termination of guardianship
(has undergone
counseling) o 2. Clearance of liabilities
Can give care/support Can give care/support Can give care/support Who must adopt?
3 year residence before o By default, the husband and wife must jointly adopt
adoption and until o Exceptions to this?
decree has been 1. Spouse adopted legitimate child of the other
entered (subject to 2. Spouse seeking to adopt own child
exceptions)
Other spouse must consent
3. Spouses legally separated
When can a Filipino adopt: (capacity, character, age) o N.B.: This rule is important. BOTH the H and W must jointly
o 1. Legal age adopt. If one spouse is qualified but the other is not, then there
o 2. Full civil capacity and legal rights can be no adoption.
o 3. GMC, and not convicted of crime involving moral turpitude Ex., a former Filipina who became American wanted
o 4. Emotionally and psychologically capable of caring for to adopt her younger minor brother. This is fine. But
children if her American husband is not qualified (ex. there is
o 5. Can provide care/support no residency requirement yet), then he cannot adopt.
o 6. At least 16 years older than adoptee, except if: The petition will fail.
Adopter is biological parent
Spouse of adoptees parent

38
Note: in the case above, the waiver of residency o 2. If adopters concur with parents/legitimate ascendants of the
period does not apply to the alien husband because adoptee, they divide the estate to the parents, to the
the brother is not the legitimate child of the wife yet. adopters
Who may be adopted? o 3. If adopters concur with SS or ICs of the adoptee, then divide
o 1. Person below 18 judicially or administratively declared the estate to adopters and SS or ICs
available for adoption o 4. If adopters concur with SS and ICs of the adoptee, then
o 2. Legitimate child of one spouse by the other spouse divide the estate 1/3 to adopters, 1/3 to SS, 1/3 to ICs
o 3. Illegitimate child of adopter, to improve status o 5. If only adopters, they get everything
o 4. Person of legal age, if prior to adoption and since minority, o 6. If only biological relatives, follow ordinary succession rules
consistently treated and considered as own child by adopter o N.B. if the adoptee has legitimate children/descendants, then
o 5. Child whose adoption has been previously rescinded just like ordinary succession, the adopters are excluded.
o 6. Child whose biological/adoptive parents died Who can rescind adoption?
But not within 6 months of death of parents o JUST the adopted child. Never the adopter.
Whose consent is needed for the adoption? Grounds to rescind?
o 1. Adoptee, if 10 years old or above o 1. Repeated physical or verbal abuse by adopter
o 2. Biological parents of child if known or government o 2. Attempt on life of adoptee
instrumentality caring for the child o 3. Sexual assault or violence
o 3. Legitimate and adopted children of adopter and adoptee, if o 4. Abandonment/failure to comply with obligations
over 10 years old Effects of rescission:
o 4. Illegitimate children, if over 10 years old and living with o 1. Restores parental authority of biological parents, if adoptee
adopter and spouse is still a minor/incapacitated
o 5. Spouse of adopter or adopted, if any o 2. The amended birth certificate is cancelled
What are the effects of adoption? o 3. Rights to succession are restored, but not as far as there are
o 1. All legal ties between the biological parents and the adoptee already vested rights
are severed Who may adopt under the Inter-country Adoption Act (RA 8043)?
Except when it is the biological parent that is the o 1. At least 27 years old and at least 16 years older than the
adopter prospective adoptee
o 2. The adoptee becomes the LC of the adopter Except:
o 3. Adopter and adoptee obtain reciprocal successional rights 1. Adopter is biological parent
(just them) 2. Adopter is spouse of biological parent
What is the effect on succession rights under FC, Articles 189-90? o 2. If married, the spouse must jointly file for adoption
N.B. There is controversy whether these still apply, o 3. Has capacity to act under national laws and undergone
but these were included in the Bar syllabus, so take counseling in his country
note. o 4. Not convicted for crime involving moral turpitude
o 1. The adoptee remains an intestate heir of his biological o 5. Eligible to adopt under national law
parents and blood relatives o 6. Can give proper care and support to the child

39
o 7. Agrees to uphold UNCRC, Philippine Law, and the R&R of o This is valuable if there is not much resources to provide
the Inter-country adoption act support with
o 8. Country has diplomatic relations with the Philippines o System of priority found in FC
o 9. Possesses all qualifications and none of the disqualifications Who are the persons required to support each other?
under Philippine law o 1. Ascendants and descendants
Where is a petition under RA 8043 filed? No matter how far removed
o 1. RTC with jurisdiction over the child In the case of illegitimate ascendants or descendants
o 2. With the Inter-country Adoption Board through a in the direct line:
governmental or accredited private intermediate agency in the Seems to stop at parents, and their
country of the prospective adopters children, whether legitimate or illegitimate,
What supporting documents must be filed? and their descendants, whether legitimate or
o 1. Birth certificate of parents illegitimate
o 2. Marriage contract if married or divorce decree But the effect is really just the same. The
o 3. Written consent of their biological children above 10 years of code just wants to make it clear that there
age (sworn statement) are no illegitimate parents or illegitimate
o 4. Physical, medical, and psychological evaluation by licensed ascendants. But basically it is the same. So
physician and psychologist illegitimate children can claim from their
o 5. ITRs or other documents showing financial capability illegitimate grandparents.
o 6. Police clearance o 2. Collateral relatives: limited to brothers and sisters
o 7. Character reference of local church or minister, employer, No other collateral relatives
and member of immediate community knowing the applicant Half-brothers and sisters are considered legitimate
for at least 5 years and are entitled to support
o 8. Recent postcard-size pictures of applicant and immediate If the illegitimate brother or sister is a minor, you are
family required to support him or her
What applies for judicial proceedings? If he or she is no longer a minor, you ask for the
o Rules of Court reason why he needs support
E.g. he is indolent, then you are not required
SUPPORT E.g. he is a paraplegic, sick, and has no job
opportunities, then you are required to
What is covered by support?
o 3. Spouses
o Everything necessary for sustenance The only thing that binds them together is the
o Food, clothing, medicine, education, transportation marriage contract. If you remove the validity of the
How long does support last? marriage, then there is no obligation to give support.
o Support doesnt end at age of majority This is why the guilty spouse may still be required to
o It is still the parents obligation provide support to the innocent spouse.
What is the order of support? Can you refuse to give support to a philandering
o There is a system of priority in support spouse?

40
No. Unless there is actual LS, there is no
legal defense to deny support.
However, an unjustifiable refusal to live with PARENTAL AUTHORITY
ones spouse is a ground to refuse to give
How does the rule on parental authority differ from support?
support.
o Parental Authority is time-bound: it only lasts until the children
Priority of support:
reach age of majority
o 1. Spouse
o Thus, the only freak situation is the giving of consent for
Different from succession, where spouse is only #4
marriage, even until 21 years old. This is the outlier.
o 2. Nearest descendant
What does Parental authority cover?
o 3. Nearest ascendant
o 4. Brothers/sisters o 1. Custody
o Order: o 2. Discipline (proportionate to offense)
Spouse What are the concomitant obligations?
Children o Support
Parents o Moral and spiritual guidance
Grandchildren o Provide good environment, etc. (PD 603)
Grandparents Two types of PA:
Etc. o 1. Parental authority over the person
N.B. Thus the rule is you do not exhaust going down Parents
before going up. It alternates ARE ALWAYS FIRST
Rule on plurality: Parents only lose if shown to be unfit
o When you have enough, you do not have to worry about the Having more resources has never been the
priority of support. Just give enough to everyone. criteria
o It will be prorated based on the ability of the provider to give. Take note of tender years doctrine (in
So a child who earns more must support the parent more than custody cases, a child under 7 goes to the
the child who earns less. mothers custody unless there are
o The court can demand one person to advance, and then the compelling reasons otherwise)
person demands from the rest. If parents are gone, substitute parental authority
Can the right to receive support be levied upon by attachment or (BOTH parents must be gone)
execution? 1. Grandparents no preference, whether
o No. Legal support is exempt from attachment and execution. parental or maternal line. If there is clash,
But contractual and testamentary support is NOT exempt from they go to court
attachment and execution. 2. Eldest B/S over 21
o The latter are in excess of what one is required to give 3. Anyone with custody over the child
Can judgment for support be considered final and res judicata? And concomitantly, special parental authority
o No. Its always subject to modification, depending on need and Teacher, in the classroom or outside the
capacity to support. classroom, for recognized school activity

41
Implication: responsible for injury or death o If there is excess, it can be used for
over child collective needs of the family
o Defense: due diligence 3. Properties owned by parents
The teacher exercising special parental o There can be minor children tasked
authority is SOLIDARILY AND PRIMARILY to administer certain parents
liable. The parents and those with substitute properties
parental authority: subsidiarily liable o OWNED by parents
o 2. Parental authority over property of the children o Fruits and income go to:
Legal guardianship Parents (but parents must
Automatic if value of childs assets are less pay the children, which
than P50,000 should be the same
If more than P50,000: required to file a bond amount they wouldve paid
and must be appointed by the court in a a 3rd person administrator)
summary proceeding Children (as earnings, not
Even if you are granted authority by the treated as advance on
court, legal guardianship authorizes only legitime)
acts of administration; NOT acts of When is parental authority terminated?
ownership o 1. Death of parents or death of child
There is separate approval if you want to sell the o 2. Emancipation of child
childs properties o 3. Adoption of child
Rules on property of minor children: o 4. Appointment of general guardian
1. Properties of children (regardless of how o 5. Judicial declaration of abandonment
acquired) o 6. Final judgment by court divesting parental authority
o OWNED by the children. Even o 7. Judicial declaration of absence or incapacity
minors can own property. Grounds for suspension and deprivation of parental authority?
o Parents only have legal o 1. Conviction of parent that has civil interdiction
guardianship. They can administer Automatically reinstated upon service of penalty,
it, and must account in a fiduciary pardon, or amenesty
capacity. o 2. Court, in action, finds that the parent:
o If LC joint admin by father and A. compels child to beg
mother; if disagreement, father B. Treats child with excessive harshness or cruelty
wins, but mother can seek court C. Gives child corrupting orders, counsel, example
redress D. subjects child or allows him to be subjected to acts
2. Fruits and income of the property of lasciviousness
o Can be used by the parents o 3. Subjected child or allowed him to be subjected to sexual
o Not for their own; ONLY to support abuse.
the child What is the special rule under this ground?

42
Deprivation of PA is permanent o What appears in the birth certificate
To change: Rule 103 of ROC
Funerals
What can you use as surname?
Who has the duty and right to make funeral arrangements?
o 1. Spouse Legitimate and legitimated children:
o 2. Descendants of nearest degree o MUST use fathers surname
o 3. Ascendants of nearest degree Illegitimate children:
o 4. Brothers and sisters o Only mothers surname
o What if there are descendants of same degree or several o Revilla law: allows use of fathers surname even if illegitimate,
siblings? if recognized in a private handwritten instrument or public
Older is preferred document
o Who has preference for ascendants? This is not mandatory
Paternal side Adopted children:
Against what property are funeral expenses chargeable? o If adopted by both H and W, use husbands surname
o Property of deceased o If solely adopted, use sole adopters surname
o If married, charge to conjugal property o If solely adopted by married woman, use married womans
surname
Emancipation Married women:
o Not required to use surname of the husband. Can retain
When is someone emancipated?
maiden name
o Just by reaching 18 If you change your surname to your husbands,
Still pegged at 21: theres no turning back
o 1. Parental consent for marriage o Options:
o 2. Art. 2180 of NCC (respondeat superior) 1. Keep maiden name
Ms. Gloria Macapagal
Retroactivity of the FC
2. Use maiden name plus husbands surname
Does the FC retroact? Ms. Gloria Macapagal-Arroyo
o Yes, as long as it does not affect vested rights (ex. Illegitimate 3. Use Mrs., then husbands surname
children) Mrs. Jose Miguel Arroyo
Remo v. DFA
SURNAMES o Woman adopted legally her husbands surname. Her passport
was under that name. In renewal, she asked the DFA if she
Purpose: can return to her maiden surname. But there is no annulment,
o 1. Interest of the State: because it seeks to prevent confusion or whatever ground to revert. She claimed that she had the
of identity option.
o 2. To prevent escaping from criminal liability o HELD: Cannot do this.
What is the legal name of a person? Rules:
43
o ANNULMENT Stages:
If guilty spouse, MANDATED to return to maiden
surname 1. Provisional absence
If innocent spouse, may retain husbands surname or o An ad hoc stage, since there are certain things that have to be
revert, unless she or the husband has remarried done (ex. Signing contracts, withdrawing from bank)
o NULLITY same o Legal representation: spouse is preferred
o LEGAL SEPARATION Only exception: when there is legal separation
Whether guilty or not, retain since they are still But court can appoint someone else if there is
married reasonable ground
o DEATH of husband 2. Declaration of absence
Can still use the husbands surname o Two years from time of disappearance, unless administration
May revert to maiden name of power of attorney was left with someone else, then five
Or add Vda. de Surname years
What is the rule on junior? o Procedure; prove that he has been missing/absent for a certain
o You can only give junior to the son. period of time
o There is no rule on giving daughters junior Administrator of absentee is appointed
What entries in the Civil Registry may be changed or corrected o If he reappears, he takes back his properties
without judicial order? 3. Presumptive death
o ONLY clerical or typographical errors and first/nicknames may o Here, transfer to administrator of presumptively dead person
be changed under the Clerical Error Law (RA 9408) o If proven to be dead, then transfer to administrator or executor
o Cannot change: of estate
Nationality Then proceed to settlement of estate
Sex o Periods?
Age 7 years of absence presume dead
Status 10 years for purposes of succession
o NOTE: name can only be changed once If over 75 years of age down to 5 years
When can there be change of name under Rule 103? o Periods for purposes of declaration of presumptive death
o N.B. you can change surnames through Rule 103 for remarriage?
o 1. Name is ridiculous, tainted with dishonor, extremely difficult 4 years for ordinary absence
to write or pronounce 2 years for extraordinary absence
o 2. Consequence of change of status, such as when child is What is the difference?
legitimated 4 years there is no danger of death
o 3. Change is necessary to avoid confusion 2 years there is danger of death
o 4. To improve social standing, as long as in doing so, there is o If the person reappears, return his assets to him
no injury to the State or third persons (Caledron v. Republic) If the spouse remarried, then follow Arts. 42 and 43 of
FC
ABSENCE

44
PROPERTY o Does incorporation always have to be to the soil?
No. Incorporation can be to another immovable; need
not be to the soil per se.
CLASSIFICATION OF PROPERTY Another consideration is if it cannot be separated
without breaking the material or the obect (this refers
How does the code define property? to the attached object, obviously, because even if
o Those subject to appropriation by man. land breaks, it still has value.)
o Things would thus be a broader concept since it covers even o X constructs a building on a piece of land he is merely
those not subject to appropriation. leasing from Y. Is it real or personal?
o The code weirdly interchanges the use of these two words. Real. It doesnt matter that who owns the land if by
What are the classifications? incorporation. It only matters if by destination.
o Real/immovable or personal/movable properties o If a painting is embedded into the cement wall of a house,
o Public dominion or private ownership thus becoming part of the wall, what happens to it?
What are real properties? The painting becomes immovable by incorporation.
o 1. Immovable by nature Because the painting will be destroyed when you try
Land to remove it.
o 2. Immovable by incorporation It doesnt matter what the intent is; the fact of
Buildings, constructions adhered to the soil incorporation is the controlling factor.
Trees, plants and growing fruits, while attached to the Does ownership of the painting and the wall
land matter?
Those that cannot be separated without damage No. The fact of incorporation is what matters
o 3. Immovable by destination What is the controlling factor for immovable by destination?
Ornaments o Intention of the owner of the property in question.
Machines o Give examples of immovable properties by destination.
Animal houses Statues, etc, used for embellishment.
Loading docks o If I hang the painting on the wall of Justitia (and I dont
Fertilizer actually used own Justitia)?
o 4. Immovable by analogy It does not become immovable by destination
Contracts for public works because it has to be placed by the owner of the place
Servitudes and other real rights over immovable where the painting is found, and he intends that it be
property an embellishment.
What is the only real property which is immovable by nature? o Ateneo owns a St. Thomas More painting and hangs it in
o Land the walls of Justitia. What happens?
Why do we consider buildings immovable? It is immovable property by destination, because there
o Because they are incorporated/adhered to the soil. is intent to make it an ornament and to keep it there
o If the bahay kubo can easily be moved and transported, then it indefinitely.
is personal property, not real property. When do machines or equipment become immovable by
destination?
45
o If they are placed in building or tenement where work or lease agreement stated that they are considered personal property.
industry is done, they are immobilized by intent of the owner. What are they?
o Ex. Computers used in a computer shop, and owned by the o Personal property, based on stipulation between the two
owner of the building. parties.
N.B. Does not apply to rented spaces in malls, o As to third persons in GF, they are real property, consistent
because you do not own the place; it is just for lease. with the code.
o Ex. Sewing machines in a clothing manufacturing warehouse, But if X and Y enter into a contract that deems the building as
if the machines and the warehouse are both owned by the chattel, can it be treated as such?
person. o Yes (Navarro v. Pineda). So while constructing the building on
o Animal houses: leased property does not per se affect the buildings status,
If you intend to keep it there forever, then it and the coupled with the declaration, it can. (Tumalad v. Vicencio)
animals become immovable property. o But as to third persons, its considered real property. So if its
Ex. Dog house in ones house and the dog itself publicly sold, one must compl with conditions precedent for the
becomes immovable property. sale of real property. Else, it is void. (Manarang v. Ofilada)
o Loading docks: o When there is a chattel mortgage between two persons over a
This covers, for instance, a floating platform made building and a real estate mortgage over the same property
of wood and metal where machinery of a towards another, the latter wins out because the CM is void as
petroleum corporation are attached. The platform regards third persons. (Associated Insurance v. Isabel Iya)
was tethered to a ship, which was anchored on What about a CM over machinery?
the seabed. Real or personal? o It can be valid even as to third persons, since the machine is
If intended to remain at a fixed place, real. only real property by destination if it directly meets the needs of
If it can be moved around and towed to other the business. If its just stored in the factory, then its personal
vessels, personal. property.
o Fertilizers: What are the tests to determine personal property?
Also immovable by destination o 1. Exclusion test
What are those by analogy? If not included in the list of immovable property, it is
o Contracts for public works, and real rights over immovable personal property
properties. o 2. Description test
o Is a mortgage on land movable or immovable? Can move from one place to another without
Immovable if registered in ROP impairment to the real property to which they are fixed
Movable if just between parties o 3. Considered movable properties by law
o What about shares of stock for real estate property? Ex. Growing fruits and plants because under Chattel
PERSONAL property. Shares of stock are always Mortgage Law, they are movables
personal property. Even if they are listed as immovable property in 415.
Machines placed in a chocolate-making factory were subjected to a How to resolve: only considered as chattels under
writ of seizure, which can only apply to personal property. The Chattel Mortgage Law. Otherwise, immovable under
415
o 4. Considered as personal property by analogy
46
Contracts, choses of action (right to sue or be sued) o 2. Cannot be subject matter of contracts (no alienation or
Radio frequencies encumbrance)
Shares of stock of ANY corporation, even if the o 3. Cannot be acquired by prescription
corporation owns immovable property o 4. Cannot be subject to attachment or execution
Classification in fungible or non-fungible/consumable or non- o 5. Cannot be burdened by voluntary easement
consumable:
o Only applies to personal or movable properties OWNERSHIP
o Fungible/non-fungible: based on intent of the parties
Fungible: can be substituted by others of same kind What are the rights of the owner?
or quality o 1. Right to enjoy the property
o Consumable/non-consumable: based on nature Jus possidendi
Cannot be used in manner appropriate to their nature Jus fruendi
without being consumed Jus utendi
o Money is ALWAYS fungible Jus abutendi
Although Arrovo bills are not fungible o 2. Right to dispose of the property (Jus disponendi)
Other classifications? Sell, encumber, dispose, etc.
o Constitution: o 3. Right of action to recover (Jus vindicandi )
Public domain Note: there is no such thing as absolute ownership. What are these
Private land restrictions?
o Civil Code: - for purposes of ownership o 1. Those in the Constitution
A. Properties of public dominion Eminent domain
1. Properties intended for public use Police power
2. Properties intended for public service National economy/patrimony powers
o Being used by the government to o 2. Contractual restrictions
render some service to the people, o 3. Provisions in the NCC
but not open to everybody Nuisance
o Ex. Police car Right of way
3. Patrimonial property Art 431: use property the way you want it, but not in
o Private property of the State; used manner injurious to others
for entering into some business or Art 432: doctrine of incomplete privilege the greater
utility right of more people can prevail
o Also includes those from first two Ex. Destroying ones fence to prevent
classifications that are not anymore flooding
for public use/service What are means to protect ones rights?
B. Privately-owned property o Doctrine of self-help Art 429: can use reasonable force to repel
What are the characteristics of property of public dominion? actual or imminent aggression
o 1. Cannot be appropriated Elements?

47
1. Force employed by owner or lawful o For there to be 50-50 split, the other person must have found
possessor the treasure by mere chance. Here, X already knew there was
2. Actual or threatened physical invasion treasure buried in his land.
3. Invasion/usurpation is unlawful N.B. some commentator believe by mere chance
4. Force employed is necessary to repel can cover even mere tips, because there is no reason
When does this not apply? to distinguish between one who finds treasure by pure
When the property has already been stolen. stroke of luck and one with an unsure tip.
The provision only applies to repel the o Remember, the requisites are:
aggressor. 1. Treasure is money, jewelry, precious objects
o What are your actions when you lose your property? 2. Hidden and unknown
Accion publiciana 3. Lawful ownership does not appear
Accion reivindicatoria 4. Discovery is by chance
Physical boundaries of property 5. Discover is not a trespasser
o Horizontal aspect o If the thing is of interest to science or the arts, the State may
o Vertical aspect acquire it by paying just price.
Until Rules of Aerial Navigation
Ex. If your property is near an airport, you have
special requirements to comply with
Accession
What are the rules on hidden treasure?
o If you own the building, it is yours Its an incident of ownership. Not a means of acquiring originally.
o Unless it is deemed to have been part of national treasure Two things:
o If of interest to the science or arts, the State may acquire it at o 1. Those produced from property (fruits) whether real or
their just price divided 50-50 as well personal (Accession discreta)
o Ownership must not be indicated internally generated accession
Ex. Golden spoon engraved: Imelda Marcos Natural fruits
o Only manufactured products Industrial fruits
Because if it is gold in raw state belongs to State Civil fruits
To whom does the property belong to, and what are the rules on o 2. Those attached or incorporated into ones property and
finders fee? cannot be separated without damage (Accession continua)
o Finder owns property 100% External forces or additions to the property
o Finder and owner split 50/50 Accessory follows the principal
As long as the finder is NOT a trespasser
X owned a piece of land where treasure was believed to have been Accession discreta
buried. He knew Y had a metal detector that could be used to find
treasure. Y agreed and he found treasure. To whom does it What are the kinds of fruits (accession discreta)?
belong? o 1. Natural
o To X. o 2. Industrial

48
o 3. Civil o When someone plants something in ones property, there is a
What are civil fruits? situation where you can compel the person to buy your
o Income from use of property, ex. Lease, rent of buildings property.
o These are synthetic because it is based on income of property. o In contrast, there is NEVER a situation where a sower can be
o Who gets dividends? compelled to buy the property. You can only require him to
For corporate law whoever is the registered owner pay rents.
as far as dividends are concerned, What is the rule as to expenses for planting and sowing? Who
For civil law if you only bought the shares the day pays for cost of the seeds, labor, gathering, preservation, etc.?
before, you dont get all the dividends. You have to o In general, these are charged to the person who receives the
split it proportionately. fruits.
What is the difference between natural and industrial fruits? o And as a general rule, it is the owner who gets these. But
o Natural fruits spontaneous products of the soil; products and there are instances when the law gives these fruits away to
the young of animals some other person apart from the owner.
Spontaneous they just grow, without planting, o What is the exception?
effort, cultivation Antichretic creditor (antichresis) the fruits are given
Spontaneous only qualifies soil products. No need to the creditor, and the creditor deducts it from the
to qualify animal products and young. amount of the obligation, first to interest then the
For young of animals, what is the rule? principal
If one person owns both father and mother, Know difference of Art. 4431 and 4492
then it doesnt matter. o If fruits have not yet been harvested:
If there are different owners, the owner of the Apply Art. 449.
mother gets the young. BPS in BF doesnt get indemnified.
o Industrial fruits products of the land through cultivation or o If fruits have already been harvested:
labor Apply Art. 443.
These are mostly products of the soil. Does not cover Even a BPS in BF will get compensated for necessary
animals. expenses
One must cultivate, process, plant, etc. o Contra: What if the BPS is in GF?
But the difference between natural and industrial fruits is mostly He gets compensated for what was built, planted, or
academic, unlike planting and sowing. What is the difference sown, regardless of whether fruits have been
between planting and sowing? harvested or not
o Planting produces something relatively long-term or
permanent, like trees
o Sowing a one-crop harvest like rice, corn, etc.
1
o N.B. the rules that apply to planting differ from rules applicable Art. 443. He who receives the fruits has the obligation to pay the
to sowing. expenses made by a third person in their production, gathering, and
How does the rule differ? preservation.
2
Art. 449. He who builds, plants or sows in bad faith on the land of
another, loses what is built, planted or sown without right to indemnity.
49
Accession continua Third person is the owner of the materials (OM)

General rules in accession continua: LO/BPS/OM scenarios


o 1. Owner receives the extension/increase
o 2. Accessory follows the principal 1. The ideal scenario is the LO, BPS, and OM is just one person. There
o 3. The things must be so united that they cannot be separated is no problem here. Accessory follows the principal. The presumption
without injuring or destroying the property is that the LO is also the BPS and OM.
o 4. Punitive liability attaches to the party in BF; party in GF is 2. LO and BPS is the same person; OM is a second person
not punished o When is the LO in GF here?
Accession continua those external in character, forming one single When he does not know the materials do not belong
object to him.
o Apply the accessory follows the principal rule o When is the OM in GF here?
o There are different accessions for movable and immovable When he does not know someone else is using it, or
o Immovable property: he thinks the materials used by the LO+BPS belongs
Accession industrial BPS rules (involves industry) to the LO+BPS.
Accession natural brought about by forces of o FIRST THING TO DO: determine whether accession exists. If
nature; no industry involved the materials can be removed, then there is no problem. (Ex.
Alluvium Light bulbs take them out and return them)
o Note the basic rule: when two persons are involved and both
Avulsion
are in GF, give preference to the LO.
Change in river course
o If both are in GF, what are the rights of the LO?
Formation of islands
Can acquire materials by paying indemnity to the
o Movable property:
owner of the materials. Measure of expenses: cost of
-ions (discussed below)
the materials at the time of payment.
Accession industrial
o If the LO was in GF and the OM was in BF, what happens?
o Building, planting, or sowing
Anyone who is in BF loses everything. He loses the
o What is building?
value of the materials and the owner can acquire the
Constructions, improvements using unnatural
materials without need for payment.
materials
o If the LO was in BF and the OM was in GF, what happens?
o Does it matter whether the building construction is
1. OM can remove the materials (whether or not this
permanent or transient (ex. Slums, kubo)?
causes damage) + damages
For purposes of accession, yes. Because for there to
Measure: cost of materials.
be accession, the joining together must have some
2. If OM doesnt want to remove the materials, the LO
degree of permanence.
has to pay the OM cost of materials + damages.
o How many persons are involved in the B/P/S problems?
o If both are in BF, what happens?
2 or 3
Both are deemed in GF.
There is always a land owner (LO)
3. LO is one person; BPS+OM is another person
Second personality is B/P/S (BPS)
o When is the LO in GF here?
50
He is not aware that someone has B/P/S in his considerably [key word] higher than what is
property. planted or built. (Depra v. Dumlao)
o When is the BPS in GF here? 3. Alternative: Can ask for rentals instead.
He doesnt know he is not the owner of the land. (So Value agree on a lease contract, or if they
he has to own land in the same area also, to think the cannot, court decides.
LOs land was his.) This is why most cases involving When the lease period is done, cannot
this involves only portions or property and boundary compel to renew.
disputes. If he cannot pay the rentals, then you can
o In all likelihood, there is going to be accession here, unlike in eject him.
scenario 2 since here, he builds, plants, or sows. But if it can BPSs rights:
be removed without damage, just allow removal. 1. Receive indemnity
o If both are in GF, what happens? 2. If there has been no indemnity given yet,
1. LO can acquire what was built, planted, or sown, there is right of retention and no need to pay
but pay indemnity. rents.
This option is always present. o N.B. there is right of retention if
Building there is GF
o If necessary improvement When is there right of removal by the LO against a
Measure of indemnity: BPS, if both are in GF?
actual costs. Note that this is NOT a principal remedy. It is
o If useful improvement subsidiary: you have to choose option #2,
Measure of indemnity: and then the BPS is unable to pay the
actual costs or plus value purchase value of the land.
(amount of increase of o If the LO is in GF, and the BPS is in BF?
value in land). NOTE: EVEN IF what was built, planted, or sown can
o If luxurious improvement be removed without damage, BPS cannot remove
Measure of indemnity: what he built, planed, or sown.
value at the time you enter 1. LO can acquire what was built, planted, or sown,
into possession. BUT with different rules.
(Strange rule because it The only time he must pay indemnity is for
gives the LO option to NECESSARY improvements.
acquire the property or MWSS case: for USEFUL expense can
not. But it would have to acquire without indemnity.
stay in the property LUXURIOUS improvements LO will pay, if
regardless, because there he wants it. If LO doesnt want it, he doesnt
is accession.) have to take it. Problem is, of course, its
2. LO can compel the BPS to purchase the land. going to be attached so LO really gets it free
NOTE: you can only exercise this option of charge.
when the value of the land is not
51
2. LO can always compel the BPS to purchase the 1. LO must acquire it, with indemnity plus
land, regardless of valuation. damages.
For sower in BF cannot be compelled to 2. N/A. NOTE: cannot compel the BPS to
purchase the land, whether in GF or in BF. purchase the land
Sower only pays rent. If in GF, just rentals. 3. N/A. NOTE: cannot compel the BPS to
If in BF, rentals and payment of damages. remove what was built or planted.
3. LO can demolish/remove what was built or planted. BPS here cannot compel the LO to sell him the land.
This is now a principal remedy in this case. It is just an option available to the LO.
Recall: this is just subsidiary if both are in o If they are both BF?
GF, after BPS cannot pay purchase price of Then both are in GF.
land. 4. Three persons: LO, BPS, and OM
BPS: o When is the LO in GF?
If LO takes first option: If he did not know that some BPSed in his land.
o Is entitled to indemnification ONLY o When is the BPS in GF?
for necessary expenses. He thought he owned the land.
o BPS also has no right of retention, o When is the OM in GF?
even if not paid. He did not know someone used his materials.
If LO takes second option: o As a general rule, the claims are:
o BPS must purchase it. If he doesnt OM, as against the BPS
pay, LO may sue. BPS, as against the LO
Sulo ng Nayon v. Nayong Filipino: rights of parties in o First thing to consider: Is there accession? The BPS can
this case not governed by these NCC rules. Instead, remove if there is no damage to materials AND the LO did not
the rights are governed by the lease agreement choose to buy what was built, planted, or sown.
existing between the two entities. The lease is an o What if they are all in GF?
acknowledgement of the rights of the parties; thus, a Primary option belongs to the LO.
lessee neither a builder in GF or BF. He is just a 1. LO can acquire was has been built, planted, or
lessee, governed by the laws on lease. sown with payment of indemnity including for
o If the LO is in BF, and the BPS is in GF? materials (to the OM).
First, ask the BPS in GF what he wants to do. He has 2. LO can sell the land, as long as not considerably
first dibs. more valuable. Etc.
BPS can: NOTE: These are the same rules as scenario 3.
1. Ask for removal. It doesnt matter whether BPS:
it causes damage or not. IF LO chooses to acquire the thing, BPS has
2. If he doesnt want to remove it, the ball no right to remove the thing.
passes to the LO, who has the following OM
choice [just one valid] LO chooses OPTION #1:
LOs choice:

52
o Principal remedy is against the No right of
BPS, since he took your materials. retention in case of
o Subsidiary remedy is against the non-payment
LO if the BPS is insolvent. (Basis: Can sell land (if not BPS pays for land. Right of removal comes
material rent lien because in this considerably more Becomes new owner of in (if it wouldnt cause
case, the LO received what was expensive) the land and what was any damage only, since
built or planted) built or planted both in GF).
LO chooses OPTION #2:
No subsidiary liability of
o OM can choose to remove the thing
LO.
if there is no damage suffered.
o If there is damage suffered
Remedy is against the
BPS. Illustration of LO, BPS, OM; OM in BF:
There is no subsidiary
remedy against LO. LO BPS OM (in BF)
o For the scenarios in BF,
Just apply the rules in scenarios #2 and #3. Can acquire BPS (pay Until payment, has right Loses everything. Not
indemnity for materials of retention; even subsidiary action
+ labor) against LO.
Illustration of LO, BPS, OM all in GF: Pays OM for cost of
materials
LO BPS OM
Can sell land (if not BPS pays for land. Loses everything
Can acquire BPS (pay Until payment, has right Cannot remove considerably more Becomes new owner of
indemnity for materials of retention; what was expensive) the land and what was
+ labor) built/planted, built or planted
Pays OM for cost of regardless of
materials whether there
would be damage
of not.
Right to receive Illustration of LO, BPS, OM; BPS and OM both in BF:
payment from
BPS. If BPS is LO BPS (in BF) OM (in BF)
insolvent, can
subsidiarily go Can acquire BPS. No Receive payment only Entitled to receive
after LO. [In latter indemnity, except for for necessary indemnity from BPS,
scenario, LO in necessary improvements. No who used his materials.
effect pays twice improvements. right of retention. [Since both in BF
for the same
becomes in GF as
materials]

53
regards BPS] There is LO-gf, and BPS-gf. LO-gf filed an action to recover the lot,
including the portion upon which the BPS-gf built his house. The
But no right to Trial Court ordered the BPS-gf to vacate and pay monthly rental
subsidiarily go against until the time they vacate. Correct?
LO [since LO in GF] o NO. First since, both are in GF, look at the options of the LO.
Since the LO doesnt want to buy the house, it looks as if the
Can sell land Pays for land. Can exercise right of LO chose option 2.
regardless. removal only when it o The TC mistakenly ordered the BPS to pay monthly rental,
does not cause because being in GF, he has the right of retention until the LO
damage. [Since both pays for the value of the expenses incurred by the BPS.
OM and BPS in BF
becomes in GF] Alluvium

Alluvium is gradual deposit.


When does subsidiary liability of LO occur? Four things to remember:
o Three requisites: o 1. Gradual deposit of SOIL
1) LO chose to acquire what was built or planted o 2. Must deposit in banks of rivers (and maybe lakes and
2) BPS is insolvent [not mere refusal to pay] creeks, since they empty into a larger body of water too)
3) OM is in good faith Not applicable to seas, etc. since these are public
What is the basic rule on BPS liability in favor of LO? property
o BPS is always liable in favor of the LO, if the LO is in GF. For banks of inland waters (like lagoons), do not apply
o [Or both BPS and LO are in BF becomes GF] alluvium
When is there right of removal? o 3. Deposit must be done on basis of natural current of the river
o Only enforceable against BPS, by the OM. So the LO has to Meaning, not man-made
always choose option 1. o 4. Right of ownership belongs to the riparian owner
o The only modification: whether BPS is in GF or BF No need to report, ask permission, etc. By provision of law, the gradual
If in GF must not cause damage deposit becomes yours, automatically.
If in BF regardless Does this mean you are protected in this additional area?
What are the remedies of the LO-gf if the chooses to compel the o No. Any land in the additional area is unprotected.
BPS-gf to buy the land, and the BPS-gf fails to pay? o So better if you subject it to the Torrens system, or else you
o 1. Leave things as they are and assume lessor-lessee relation can lose it through acquisitive prescription.
(Miranda v. Fadullan) o Even if the land receiving the alluvion is registered, the new
o 2. LO entitled to have improvement removed when the BPS-gf land is not yet. So it can be acquired by prescription by other
fails to pay (Ignacio v. Hilario) people. (Grande v. CA)
o 3. Sale of land and improvement in public auction, applying
proceeds to payment of value of land first to LO-gf, and the Avulsion
excess delivered to BPS-gf

54
This is abrupt. The transfer of a perceptible piece of land caused by the If the new area is smaller or bigger than the land lost, it doesnt make a
current of the river, but involving a VIOLENT and SUDDEN action of the difference. The law doesnt qualify.
water.
Prescription: two years to remove Formation of islands
o Or for uprooted trees carried by the current to another land: six
months to remove How are islands formed?
What happens if you dont take it out after two years? o When the water goes to a lower level
o Dean Del thinks if you dont remove it after two years, its gone. What is the rule?
Its not yours anymore. o If in the seas or navigable rivers, they become part of public
o It belongs to the person to whom that property is incorporated property.
into o If not in seas or navigable rivers, then the island belongs to the
o BUT some commentators dont think it will belong to the nearest riparian owner near the island.
person Ex. A and B on opposite river banks, are riparian
What about trees? owners. If the island appears on the left side, it goes
o If trees were uprooted and transferred to the other side, they to A. If on the right, to B. If in the middle, split
do not become trees. They are just logs. equidistantly
o Six months to remove
Accession in movable properties
Change of river course
N.B. Just one set of rules
Anything beneath the river is public property. So by default, when a
1. Adjunction
river bed dries up, its public land. The change in river course
provision is an exception. Ex. The table and the varnish
Example, a river goes through As property. But it changed course to Form one single object cannot distinguish one from the other.
Bs and Cs properties.
The two objects must belong to different owners
What happens?
Who owns the single object?
o B and C, the ones who lost property, own the new dry land due
o If you can separate them without injury (close to impossible)
to the change of course.
then just return
o In proportion to the land lost (ex. 2 meters of water for B, 4
o If it cannot be separated without damage the accessory
meters for C, so 1:2 ratio for B and C on the new dry land)
follows the principal
What is As right?
How do you know why is the principal, which is the accessory?
o He can choose to acquire the new dry land. Pay B and C what
o First test: What property is attached to what?
is due, in proper proportion.
o Second test: What is more valuable?
The government may choose to redirect the water. Only apply this if you cannot determine which is
Under the Water Code: the owners of the affected lands may undertake attached to what
to return the river/stream to its old bed at their own expense; but they o Third test: Based on volume
have to secure a permit from DPWH, and they must commence works
within 2 years of the change in course
55
Only apply this if values are the same or you cannot There is a co-ownership on the basis of the
determine what is more valuable. agreement.
In a diamond ring, which is the accessory and which is the They agree on the sharing. If there is none,
principal? determine by proportion of contribution.
o The band is the principal, the diamond is the accessory. This o 2. If not by the will of parties, but by chance:
is notwithstanding relative values. Pro-rata sharing by both
But if the accessory is worth much more than the principal, owner of the Determine proportionate share based on VALUE,
accessory can ask for separation, but he has to pay for the value of the and not anything else
principal since there would be damage caused. o 3. If only one owner was the cause of the mixture determine
o Ex. Diamond ring if in GF or BF:
For art, and similar materials which employ skill: In GF (thought other sack of rice was his): apply same
o DIFFERENT rule. rule on co-ownership by chance
o The work of art or intellect is the principal. The canvass or In BF: he loses whatever is his share in the mixture,
medium is the accessory. and he can be required to pay damages
If one of the parties is in bad faith, how do the rules change?
o If the owner of the accessory is in BF, the owner of the 3. Specification
accessory simply loses his accessory without remuneration, There is a thing, and it is turned into a finished product through the labor
and he is liable for damages. of another
o If the owner of the principal is in BF, the owner of the A has (Labor of one + material of another)
two choices: The labor is ALWAYS the principal, and the material, the accessory
1. Demand return of the accessory whether there is regardless of value
damage or not What is the rule?
2. Demand value of accessory, plus damages o Determine whether the worker is in GF or BF.
Measure of indemnity: o If in GF, he gets the appropriate the thing, but indemnify the
o Of same kind and quality, or give cash equivalent based on other guy for the cost of the materials
valuation. o If the worker is in BF, the owner of the materials can simply get
his stuff, and charge the worker with damages
2. Mixture Exception: work of art or scientific work the worker
The two properties must lose their respective identities, so you cannot can appropriate the whole thing:
determine which is which. But if with BF pay damages + value of
Ex. Two piles of rice get mixed together. You cannot determine who materials
owns which grain. But if with GF no damages
Two types of mixture:
o 1. Commixtion If solids are mixed Quieting of title
o 2. Confusion if liquids are mixed
Requisites for quieting?
What is the rule on mixture?
o 1. Plaintiff has legal or equitable title, or interest in the real
o 1. If the mixture occurred with the will of each owner:
property
56
o 2. There is cloud on such title o You cannot register a co-ownership as having separate
o 3. Cloud is due some instrument, record, claim, encumbrance, juridical personality.
or proceeding which is apparently valid or effective but is o Co-ownership can be created by various ways (above), while
actually invalid, ineffective, voidable, unenforceable, and partnership must be based on agreement (since it is based on
prejudicial to plaintiffs title fiduciary relationship, trust, confidence)
o 4. Plaintiff must return to defendant all benefits he received What is the right of a co-owner over the entire property?
from latter or reimburse defendant for expenses that benefited o A co-owner has borderless rights; one can use the entire
plaintiff thing. So an owner of one third of a table can use the whole
Are tax declarations conclusive evidence of ownership? table.
o No. Its just an indicia of possession in concept of an owner at What are the limitations on the right to use the thing owned in
best, but its not considered as title to property per se. common?
What is the prescriptive period? o 1. It must be according to the purpose for which it was
o If one possesses the property, there is no prescription. intended
Can it be filed against physical intruders? o 2. It must not injure the interest of the co-ownership
o No. It must be against an instrument, record, claim, o 3. It must not prevent other co-owners from using it according
encumbrance, proceeding to their rights
Does he have right to possession?
Co-ownership o Yes, over the whole thing.
o You cannot prevent other co-owners from using the thing.
What are the elements of co-ownership? o One co-owner can file for a suit for ejectment, no need to bring
o 1. Two or more owners in the others.
o 2. Unity of object If he wins the ejectment suit, it will benefit the other
o 3. Recognition that there is a co-ownership co-owners.
If I say this part is yours, this part is mine, etc. is it a co- If he loses the ejectment suit, what happens?
ownership? This is a point of contention among authors.
o No. Because there has to be undivided, aliquot shares. Can a co-owner sell the entire property?
How is co-ownership created? o No, not without the consent of other co-owners.
o 1. By law o But if one does, the sale is only over the undivided share of the
Ex. Party walls, etc. co-owner
o 2. By succession What is ones right over ones aliquot share?
Ex. Co-heirs before there is actual partition o As far as ones share is concerned, this is aliquot so there is
o 3. By agreement of the parties no specific possession. One talks about RIGHTS. You are an
o 4. By chance absolute owner of that right; you can sell or transfer it without
Ex. Mixture by chance the others consent.
o 5. By occupation o The buyer will stand in the same shoes as you did before the
Ex. Getting a wild pig together disposition.
Distinguish partnership from co-ownership. Do the co-owners have a right of first refusal?

57
o No. They do not have right of first refusal or preemptive right Cabales case was a minor at time of sale. He became of age, the
to purchase ones share, under law. court told him he had 30 days to exercise right of redemption.
o N.B. Of course if there is an agreement otherwise, respect that. How do you determine ones pro rata share in the co-ownership?
What is the right of redemption? o Respective interest in the property how much the person
o Co-owners have right to redeem. actually contributed
o Upon receipt of notice of sale. o Can you agree over the proportionate interest of each? Or
o Ratio: the law does not like co-ownership. As long as there is should you fix it to the amount of contribution?
a means to constrict co-ownership, the law favors that. Yes, you can agree over the proportionate interest; it
Redemption brings the thing back to the original co-owners; need not correspond to amount of contribution.
thus there will be fewer co-owners. Ex. A gave 1M, B gave 2M, C gave 3M. They can all
How do you exercise this right? own the thing by 1/3.
o Provided the buyer is a third person (not one of the original co- If there is no agreement, it is pro rata (1/6, 1/3, 1/2)
owners) o But with respect to income and expenses, can the parties
o Within 30 days from notice of sale stipulate?
o Can repurchase the thing from the buyer pay amount that Nope. The law renders it void.
was paid by the purchaser o So you can agree on the proportionate interest, but you cannot
o But if one paid a value grossly excessive, pay reasonable price stipulate on the share on income and expenses, which must
as determined by courts follow the proportionate interest.
Is there any preference among the remaining co-owners as to who Property must be used for the purpose that it is intended for.
can exercise of redemption? For an act of alteration, what is the rule?
o Ex. There are 5 of us, 1 sold his 1/5 share. How do you divide o To change the purpose of the thing, there must be unanimous
this? consent of the co-owners.
o Take the proportion among the remaining co-owners. So if the o Same with sale, mortgage, or another act tantamount to
other four have equal shares, each can purchase 1/20 of the alteration
1/5th share. o What is the rule on lease?
o If one does not exercise example, only 3 want to exercise his If it is either recorded in the ROP or is more than one
right, what happens the other 1/20? year: it is an act of ownership and requires unanimous
The 1/20 is divided into 3. It becomes 1/60. consent.
What if one of the co-owners advances the share of the others to If neither: it is an act of administration and just
the purchaser does he gain interest over the whole redeemed requires a majority.
thing? A, B, C co-own a house and lot in equal shares. What is the status
o No. He acquires only his own share, and he has right to get of the following acts?
reimbursement from the others. o A repaired the foundation of the house, which was tilting
o If the others dont pay their share, the shares still do not go to to one side Binding upon B and C. They must contribute 2/3
the one person he can attach over their properties: of the expense, since it is for preservation.
Properties
And even the pro rata share over the co-ownership

58
o B and C mortgaged the house and lot to secure a loan It is a RIGHT by any co-owner
Will only bind Bs and Cs interest, so As 1/3 is not covered by The other co-owners can remain to be co-owners as
the mortgage. to the remaining shares, after there was distribution to
o A built a concrete fence around the lot Not binding upon B the outing co-owner of his share.
and C since expenses to improve the thing must be decided by Is there a way to prevent a co-owner from asking for partition?
majority of the controlling interest. o A provision preventing partition until a certain time is valid.
o C built a grotto in the garden Does not bind A and B, since o Any prohibition for division including transfer good only for
it is for mere embellishment, and it was not decided by majority TEN YEARS
of the controlling interest. o Can extend again, but for another 10 year period. In the
o A and C sold the land to X The sale does not bind Bs 1/3 intervals, those who want out can get out again.
share of the property. B can redeem the 2/3 share sold by A o N.B. For testators can stipulate a longer period (20 years) but
and C to X, since X is a third person. this is not extendable
Distinguish: o What is the exception provided in the FC?
o Preservation: may be at the will of any one co-owner; but he For family homes, there can be no partition of FH as
must notify other co-owners first as far as practicable long as there are still minor beneficiaries.
o Administration: only with concurrence of majority of co- What is the rule on party walls?
owners o You cannot partition party-walls, and it will continue forever.
But they may designate one co-owner as Partitioning it would injure the building. So as long as
administrator; the latter becomes an agent someone is using it, it will persist.
o Alteration: only with unanimous concurrence of the other co- If partition would render the thing chop-chopped, what should one
owners do?
If you perform an act of ownership or administration, and you do o Sell the entire thing, and then divide the proceeds among the
not get the required number of votes, what happens? co-owners.
o Your act is considered not authorized, and the other co-owners How does a co-ownership terminate?
can require you to undo what you have done. o 1. Consolidation of ownership in one co-owner
o The other co-owners can ask you to destroy what you have o 2. Destruction of the thing
built, and you have to restore it in its original condition. o 3. Prescription in favor of a third person or a co-owner
What if a co-owner wants to make an improvement on the property o 4. Partition
but he cannot secure the majoritys consent, or if the majority How do you terminate the co-ownership?
resolution is seriously prejudicial? o Main way: by partition.
o At the instance of an interested co-owner, may petition the As to the process of partition, see the ROC. There is
court to order measures it deems proper ex. Appointing an judicial and extra-judicial partition.
administrator No need for a reason. You can ask anytime.
If you want to get out of the co-ownership, what is the remedy? o What happens about total partition?
o 1. Sell your undivided share. There is obligation of mutual accounting for the co-
o 2. Partition absolute right of any co-owner owners. This is for the benefits and profits earned by
No need to give a reason the co-ownership.

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E.g. If one lot is divided into three equal parts (30 What should the heir do to receive sole ownership?
sqm. Each) A, B, and C, then A loses his part to a o Wait for redemption period to expire, and then wait for the
real owner with title, because it wasnt actually part of mortgagee/purchaser to consolidate his title, and a new title is
the co-ownership, he can receive 10 sqm. each from issued in the mortgagee/purchasers name. Then the heir can
B and C. Same if A ends up with a ravine, as offer to purchase the property from the mortgagee.
opposed to Bs and Cs flatlands. Same rule for
proceeds (150K for B, 150K for C, 0K for A, but they Condominium Act
agreed to equal sharing 50K each from the
proceeds of Bs and Cs lands.) There is an aspect of co-ownership in the Condo Act.
o Another way: prescription Art. 490 is the predecessor of the Condo Act:
Requisites: o Building with several stories, and with different owners. There
1. Repudiates the rights of other co-owners are common areas, too.
2. Repudiation is brought to the knowledge o You only share on the expenses of the stairs that you actually
of the other co-owners use. So GF person spends nothing on stairs. 2nd F person
3. Evidence is clear and conclusive that he and up spend on the first floor stairs. And so on.
may acquire exclusive ownership Two things in condominium system:
4. After lapse of period fixed by law o 1. Interest in separate and independent unit (inside inner wall)
One co-owner sets up prescription against the other you get a CCT (Condominium Certificate of Title)
co-owners, claiming the property to be entirely his. o 2. Interest in the common areas (elevator, lobby, gym, etc.)
You must have an act considered adverse to the co- N.B. there is constitutional restriction on ownership of land (not the
owners; you repudiate the co-ownership through overt building). But the land is always part of the common area, since it is
acts or express communication to the other co- constructed on the land.
owners. Two options in so far as ownership of common areas:
From the time of repudiation, count the period o 1. Direct ownership unit owners own the common area in
necessary provided for by law for acquisitive common (1 unit, and there are 20, you own 1/20 of the
prescription. If completed without protest by the common areas, including the lot)
others, a co-owner can acquire the entire property. o 2. Indirect ownership Condominium corporation, and the unit
If you expressly start in co-ownership and you owner owns shares in proportion to the number of units owned
repudiate it after, then you are surely in BF, so you (see below)
have to follow the 30 year period. How do you get around the restriction on land?
Spouses H and W mortgaged their house to a bank. They failed to o Condominium Corporation: it is a corporate entity. As long as
pay, so the bank foreclosed the property. They died and left 60% of the ownership is for Filipinos, then the condominium
behind 3 heirs. One of the heirs redeemed the property within the corporation can own land.
one year period for redemption. Is she the sole owner or a co- o Transfer of this land to the Condominium Corporation is not
owner? subject to transfer taxes (tax incentive)
o Co-owner with her co-heirs. Redemption by one would benefit Can you build a condominium on leased land?
the others. o Not many are built on leased land, but actually, in this case,
there are no ownership restrictions unlike if the land is owned.
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o But this is not marketable; some people think that when the o 3. Existing more than 50 years, or obsolete/uneconomic and
lease expires, there would be no security. more than 50% interest in the common areas are opposed to
How do you register a condominium project? renovation
o 1. Master deed o 4. Material part of the condominium was expropriated and the
Indicates how many units, how big each is, etc. project is no longer viable
Because in the Condo Act, 1 unit = 1 share/vote Or more than 70% of the interest are opposed to
regardless of the size of unit continuation of the project after expropriation
The master deed changes this, usually: a studio gets o 5. Conditions for partition by sale in the deed of restrictions
1 vote, two bedroom condominiums get 2 votes, have been met
penthouses get 3 votes, etc.
o 2. Deed of restrictions Water Code
o Most of these documents are drawn up by the developers
before the building has been constructed. Waters are owned by the State (waters in their natural state not
Its hard to physical partition for common areas. So the only way you commodity water)
can partition is to sell the entire project (the whole building, including Right to appropriate water based on beneficial use
your units), because there is no one who will just buy the common o You have to ask for a water permit before you can draw water
areas. from these natural sources of water (if commercial), not small
How do you partition if there is direct co-ownership? drawings of water
o If DIRECT co-ownership: It is not like ordinary co-ownership For those who want to bathe/swim in the waters
where a partition can be for no reason. There has to be a
ground under Sec. 8 of the Condominium Act. (ex. Destruction
or damage for period of three years; 50% damage or injury and POSSESSION
more than 30% are opposed to repairing the building, etc.)
o If owned by a CONDOMINIUM CORP: Unlike Corp. Code Requisites of possession:
where 2/3 vote would lead to dissolution regardless. But here, o 1) modes of possession
you need any of the grounds in Sec. 13 (similar to grounds in o 2) intention to possess
Sec. 8). So its vote + reason for partition. o 3) own rights
Another difference with other corporations, where How do you determine GF/BF?
there is a 50 year maximum life span; condominium o GF:
corporations have no life span and will exist as long 1. Possessor acquired thing through title or mode of
as the project exists acquisition
What are these grounds under Sec. 8? 2. There is a flaw or defect in the title or mode,
o 1. 3 years after damage or destruction to projects which makes 3. He is not aware of it
a material part unfit for use, and not repaired o BF:
o 2. Damage to at least 50% of units and more than 30% interest 1. Same
ownership of common areas are opposed to repair 2. Same
3. He is aware of it

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o When does possession cease to be in GF? Contrast: this cannot ripen into ownership
When facts exist which show that the possessor is through acquisitive prescription because he
aware that he possesses the thing wrongly is not considered to be in legal possession of
Else, from the moment possessor receives judicial a property, because the law does not
summons to appear in trial consider him as such.
What are the modes of possession? Possession acquired through violence can never
o 1) Actual possession ripen into ownership.
o 2) Symbolic delivery o 2) Possession with juridical title
Ex. Giving someone a key to a car its symbolic You recognize that ownership belongs to another
possession of the thing the key pertains to person, but has turned over possession to you
Ex. Pointing to a property and saying that is yours Ex. A lessee
o 3) Constructive delivery Generally, this does not and cannot ripen into
On the basis of execution of legal formalities ownership.
What does intention to possess mean? Exception: repudiation of juridical title may
o Subjective element lead into acquisition of the property
What does own rights mean? Can fall under #3 under extraordinary
o Excludes those who possess something on behalf of other acquisitive prescription (always BF)
people (so the principal is actually the one in possession of the o 3) Possession with a just title
thing possessed). Example: Titulo colorado
Agent Possession acquired through just title but there a flaw
Guardian in the title
Attorney-in-fact Ex. The transferor has no right to transfer
Etc. Basis of just title: there is a mode of acquisition
o An agents possession could never ripen into ownership, Ex. Tradition (through sale), donation,
unless ratified by the principal succession
What are the kinds of possession? Can ripen into full ownership through acquisitive
o 1) Possession with no title prescription
Has no legal right at all. o 4) possession with just title and there is no flaw
Ex. Squatter Titulo verdadero y valido
Ex. Your phone was stolen by a thief. You took In the concept of an owner, just like #3, but in this
efforts to get it back. After a week you gave up. case, he really is the owner
Does the thief gain legal possession of the In case of conflict between 2 persons regarding possession of a
property? certain property, who shall be preferred?
The property becomes res nullius, because it o As a general rule, there can be no simultaneous possession of
has been abandoned. Thus, occupation is more than 2 distinct personalities, except for co-possession
the mode of acquiring ownership. (see below)
o Rules:

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1. Present possessor prevails Transfer of possession, once accepted, is seamless. You are deemed
2. If both are present, longer possession to have possessed it since death of decedent.
3. If same length, one with a title
4. If all are equal, place the thing in judicial deposit Rights of Legal Possessor:
pending determination by court
What kind of possession can serve as title for acquiring dominion? Peaceful and uninterrupted possession
o ONLY possession acquired and enjoyed in the concept of an
Is there such a thing as co-possession?
owner. Must be Titulo verdadero y valido. o Yes. But in co-possession, you dont have rights of ownership.
o BUT its possible that one acquires possession by some Can be no valid transfer of title, since there is a flaw. The
recognized mode, but from a person who could not transfer difference with co-ownership is that in there, there is right of
right of ownership ownership.
Tet he can still become an absolute owner, if he Can co-possession ripen to co-ownership?
proves acquisitive prescription, whether ordinary or o YES. Same rules on acquisitive prescription will apply.
extraordinary. The title here can be Titulo Colorado. How is co-possession credited?
o If there is partition, before ownership is acquired, the co-
Acquisitive prescription must it be only your own possession possessors can take credit for the years of possession before
that could lead to this? partition, in counting acquisitive prescription,
o No. There is principle of tacking. Those that came before o It is possible that one co-possessor is possessor in BF, and
the person claiming possession. one co-possessor is possessor in GF. Each of you will have to
o You have to trace your title directly to those preceding you. take your own character of possession. If you have 3 years of
There must be someone before you and you can co-possession, and you are in BF, and other is GF, then the
BF doesnt affect period or number of years of GF co-
point at the relationship of the predecessor with you
possessors.
(there must be privity of title) When is there interruption of possession?
o If all the possessors are in possession of such character (ex. o Two kinds: natural interruption and legal interruption
BF), just add all of the years together to figure out how many o How long should natural interruption be before you say
years are left that acquisitive prescription is lost?
Ex. A = 3 years, B = 3 years, C = 3 years 21 years 1 year. If gone for 6 months, but you came back and
left redeemed possession, you are deemed never to have
lost possession. 6 months will be counted in favor of
o Once the line is broken, you have to start counting again.
acquisitive period.
o On issue of ratio: you cannot take credit for BF possession o In legal interruption, there are judicial summons against you.
preceding yours. No credit, no tacking, no ratio. How do you lose possession of property, aside from interruption?
While Paras says you can use ratio (ex. Credit 1 year o 1. Absolute loss or destruction
of possession for 3 years of BF possession), Dean o 2. Assignment
Del Castillo disagrees. If the preceding possession is o 3. Abandonment
in BF, your possession is already tainted. o 4. Possession by another
Actions in case of deprivation of possession of immovable
Inheritance property:
o 1. Forcible entry/unlawful detainer within 1 year from cause
of action
If repudiated, deemed to have never possessed it in the first place.
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Within 10 days from filing this complaint, may secure refuses this concession, he loses all
preliminary mandatory injunction to restore indemnity
possession o 2. Share the fruits based on period
o 2. Accion publiciana within 10 years after possession was of possession (possession of
lost cultivator is not from the time he
Plenary action to recover possession of property actually took possession, but from
o 3. Accion reivindicatoria within 10 or 30 years, as the case time of pending fruits).
may be What if the possessor is in bad faith?
Action to recover possession based on ownership of Only entitled to be reimbursed for necessary
the property expenses.
Action in case of deprivation of possession of movable property: o B. Gathered fruits
o Action for replevin What if the possessor is in good faith?
Entitled to gathered fruits during possession.
Right of a dispossessed possessor over fruits What if the possessor is in bad faith?
Either:
A. Civil fruits o 1. Deliver gathered fruits from time
o What are civil fruits? he lost good faith
Rents, profits, and other forms of compensation for o 2. Reimburse the true owner for
use of property during time when you were in their value + interest
possession He shall also reimburse the true owner for
o When can you keep the civil fruits of the property you fruits the true owner could have received
possess? with exercise of due diligence.
As long as you are in good faith, you can keep the But he can deduct expenses he incurred in
fruits and there is no need to pay rentals for production, gathering, harvesting (necessary
possession expenses)
o What happens when GF is lost?
Once good faith is lost, you have to give the fruits Indemnity for expenses of a dispossessed possessor from the new
after that to the owner, and you have to pay rent. possessor
o What is the effect of a legal interruption?
If legal interruption, you have to allocate time when A. Necessary improvements
you received summons and were still in GF. After o Rights of possessor in GF:
summons, you have to turn over fruits and pay rent. 1. Right of reimbursement
B. Natural and Industrial Fruits 2. Right of retention
o A. Pending fruits o Rights of possessor in BF:
What about pending fruits? 1. Right of reimbursement only
Pending fruits are those that have not been B. Useful improvements
gathered, and are still standing in the o Rights of possessor in GF:
property. 1. Right of reimbursement
What if the possessor is in good faith? Either actual amount of expenses, or
Either: Increase in value of the property
o 1. Allow prior possessor to cultivate 2. Right of retention
the fruits. If the prior possessor 3. Limited right of removal
There must be no damage caused
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And the new possessor must not have 1. True owner lost the movable
chosen to reimburse the prior possessor 2. True owner unlawfully deprived thereof
o Rights of the possessor in BF: Exception to the exceptions:
None. When the present possessor acquired the
C. Luxurious improvements movable in GF in a public sale.
o Rights of possessor in GF: What is the remedy of the true owner in
Limited right of removal. this situation?
o Rights of possessor in BF: o Reimburse the possessor for the
Limited right of removal as well. price paid for it
D. For deterioration or loss What if the good was sold in a merchants store?
o Rights of possessor in GF: Then the buyer acquires better rights than
No liability the true owner
Unless due to fault or negligence after he had G lost his ring. After a few days, he found it in the possession of H
become a possessor in BF. who had loaned money to Z and received the ring as security, in
o Rights of possessor in BF: GF. What are the relative rights of G and H?
Always liable, even if due to his fault or negligence, or o Default rule: possession of movable in GF is already equivalent
fortuitous event to title.
o BUT in this case, G lost the ring. So he can still recover from
Special Rule re: movables H without obligation (first exception).
o The exception to the exception does not apply because H
Rules on acquisitive prescription: received it as pledge, and not from purchase in a public sale.
o Period for movable property is shorter Besides, only the lawful owner can pledge a movable, so the
What is the legal interruption for possession of movables? pledge is void.
o Replevin suit A agreed to sell his car to B, and they registered it in the name of
What is the rule in natural interruption? B. While waiting to get paid money in Bs sala, A never saw B or
o Even if you lose actual physical possession over it, you still the papers again. B sold the car to C, who sold it to D, both in GF.
possess it as long as it remains under your control. Can A recover the car from D?
o As long as you havent abandoned the property, it is still o Yes, since A was unjustly deprived of his car. The usual
subject to your control. common law rule that where two people (A and D here) would
What if it was misplaced? suffer from a fraud, the one whose acts enabled the fraud to be
o You still have possession committed should suffer does not apply by mandate of Art.
What if you were unlawfully deprived of the movable? 559.
o You still have possession but you have to recover the property o What if the car was bought in a public sale?
o As long as you havent abandoned the property The possessor is entitled to reimbursement
What is the rule on recovery of movables? o What if the car was bought from a merchants store?
o A. Possessor is in BF: The possessor wins. As between a purchaser at a
The owner can recover it from him without any mechants store and a legitimate owner of the thing
obligation whatsoever who lost it, the former wins (Art. 1505, NCC)
o B. Possessor is in GF: When can the owner of a movable who has lost it or who has been
The owner cannot recover it because possession in unlawfully deprived thereof no longer recover the property?
GF is equivalent to title. o 1. Prescription
Exceptions (where the true owner can still recover o 2. Possessor acquired thing from a person whose authority the
without obligation): owner is estopped from denying
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o3. Possessor acquired the thing from a merchants store, fairs, Substance: no operation, except with consent of
markets, etc. owner, that would prejudice the thing given
o 4. Thing is a negotiable instrument and possessor is purchaser Cannot appropriate the thing subject of usufruct
in GF and for value
o But can appropriate the fruits
o 5. Possessor is owner of thing in accordance with finders-
keepers principle (Art 719) What are the exceptions?
What is the finders-keepers principle? o 1. Can appropriate the thing
o Where one finds a lost item, he must turn it over to the mayor. Abnormal usufruct
o After publication for 2 weeks of announcement of finding, and o 2. Can alter the form of the thing, leading to a slightly
lapse of 6 months thereafter, the finder becomes the owner. deteriorated form
N.B. If the real owner comes forward, the finder gets Quasi usufruct
a reward of 1/10 the value of the thing
What is a abnormal usufruct?
Usufruct o For consumable things. So when returned, there is some or all
of it consumed.
What is the nature of usufruct? o Instead, you have to pay the propertys value based on
o A person was given the right to use the property owned by appraisal (for movable properties)
another. If there was appraisal at the beginning, pay that.
o It is a real right. If there was no appraisal, replace with another object
What is the most important aspect of usufruct? of same quality and quantity
o The right of possession over property held in usufruct is not
What is quasi usufruct?
matter of legal necessity. What will make it usufruct, where you
are entitled to, is the right to receive fruits. o For properties that easily depreciate
How is usufruct created? Ex. Cars
o 1. Voluntary act of owner not possessor. Possessor can lease, o You cannot really return the thing in the same form and
but not usufruct. substance.
o 2. Legal usufruct. But this is no more. o Instead, you return the object itself. As long as its normal
If children, mere act of administration by parents. wear and tear, you have no other obligation to the owner.
Husband now no longer owns properties of wife.
What is the right of the one enjoying usufruct? If a property has been encumbered, can it still be subject to
o Usufruct has ABSOLUTE right over fruits of property. usufruct?
o Preservation of substance and form of thing: only if you have o Yes. The usufructuary does not compete with the mortgagee
been granted possession of property in the first place. If not, as far as fruits. There is no inconsistency.
you only really get the fruits. o If the mortgagor defaults in the principal obligation, what
o Owner cannot control how usufruct uses the fruits. happens?
What can be the subject of usufruct?
The mortgagee can foreclose the property. This is his
o There can be usufruct over movable, immovable properties, or
even rights, but not personal rights right.
o Differentiate usufruct and easement: o If you are the usufructuary, how do you stop the
Easement is only for immovable properties. foreclosure? Should you pay the obligation?
What is the usufructuarys obligation? No need; there is no legal obligation to pay for the
o Preserve the form and substance of the thing lent in usufruct. principal obligation.

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His right to usufruct continues. It is a real right and building without land. So the loss was not a total loss that
can be enforced against any mortgagee. would extinguish the usufruct.
Can there be usufruct over pledged properties? o A is thus entitled to 1/3 of the land + materials thereon, as a
o No. There is a conflict. temporary measure until the buildings are reconstituted.
o The pledgee is entitled to the fruits of a pledged property. The A owned a parcel of land and gave B usufructuary rights. The land
fruits stand as security as well for the obligation. was still empty then. After, A constructed commercial buildings
o So you cannot give the fruits to a usufructuary. on the lot. Is B entitled to the fruits from rentals of the buildings?
o N.B. I assume, same goes with antichresis o No. The usufruct was constituted on the land, not the
What about a leased property? Can it be given in usufruct? (Ex. A buildings.
leased to B, A gave usufructuary rights to C) o But since the construction diminished the rights of the usufruct
o Yes. over the land, he must be indemnified for the loss. In a case
o Use and possession goes to the lessee. (Gaboya v. Cui), the owner was made to pay monthly rentals to
o The usufructuary need not have use and possession; all he the usufructuary.
needs to get are fruits. The usufructuary gets the rentals from
that property. Default provisions of usufruct
Requirements for usufruct?
o Form is not a matter of validity, just a matter of convenience. The other provisions in the Code: are those that apply by default, in the
o It is valid between the parties. absence of specific stipulations of the parties.
o You want it to be in a public instrument, so that you can If the property has pending fruits, when the contract of usufruct
register it. was entered into, to whom do these belong?
o NOTE: a usufruct is always a real right, and will follow the o Growing fruits at the time usufructuary enters into the property:
property. A lease is only a real right if registered. belong to the usufructuary
Modes of extinguishing a usufruct? o No indemnification
o 1. Death of usufructuary, unless contrary intent appears At the time the usufruct terminates, what happens to the pending
o 2. Expiration of period or fulfillment of resolutory condition fruits?
o 3. Merger of usufruct and ownership in one person o Belongs to the owner
o 4. Renunciation of usufruct o Owner pays indemnification for expenses to plant, cultivate,
o 5. Total loss of the thing and other expenses for the fruits
o 6. Termination of the right of the person constituting usufruct Gathered fruits?
o 7. Prescription o Belong to the usufructuary.
A sold a parcel of land to B. There were two buildings on the land. What is the nature of the usufructuarys possession?
There was a condition that 1/3 of the rents of the two buildings o Possession with juridical title
should go to A. Subsequently, without Bs fault, the buildings Can the usufructuary grant possession to another person (ex.
were totally destroyed. Did this extinguish the obligation? Lease)?
o No. What was constituted was a usufruct. Rentals are not o Yes. Here, it is mere possession that is transferred, the right of
only due from buildings, but also the land. There can be no which the usufructuary possesses
o What is the exception to this right?

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Caution juratoria - Giving possession to a person who o Necessary expenses: right to demand reimbursement
has nothing o Useful and luxurious:
What happens if the period of the lease is longer than the period of No reimbursement
the usufruct? But may remove these if there is no damage to
o Rentals after termination of the usufruct belong to the owner. property caused
o If the lease has become a real right, then the owner must N.B. TAKE NOTE! For BPS and for dispossessed
respect possessor, useful expenses are usually reimbursed.
1. Leases longer than 1 year Here they are not.
2. Leases of property registered in the ROD o May set-off these improvements against damage on the
Obligations of the usufructuary? property
o 1. Make an inventory of the property
o 2. Give necessary security
Exceptions to bond requirement?
Easements
1. No one will be injured by lack thereof
2. Donor has reserved usufruct of the What is the nature of an easement?
property donated o Also a real right. The right attaches to a specific property until
3. Parents, who are usufructuaries of the right is extinguished. Only difference from usufruct: it is
unemancipated childrens property, except something that attaches to personal property, while easement
when the parents contract a second only applies to real property
marriage Further qualify: easement is applicable to land,
4. Caucion juratoria buildings, tenements, and not other kinds of
Obligations of the usufructary during the usufruct? immovables
o 1. Take care of the property as a GFF o No easement over another easement, for instance, even if the
o 2. Make ordinary repairs easement is also a real property. Likewise, those by analogy:
o 3. Inform owner for extraordinary repairs cannot receive easements.
o 4. Pay annual charges, taxes, and liens over fruits What is an easement?
N.B. if the taxes, charges, or liens are over the o It is an encumbrance over an immovable property, for the
property itself, the owner is liable benefit of:
o 5. Notify owner of any act of a third person that may be o Another immovable property belonging to someone else (Real
prejudicial to right of ownership easement)
o 6. Pay expenses, costs, liabilities in suits with regard to o Or a person or community (Personal easement)
usufruct Dominant estate is the one benefited.
Obligations upon termination of the usufruct? Is there any difference between easement and servitudes?
o 1. Deliver the thing to the owner o For purposes of the NCC, these are used interchangeably
o 2. Right to retention for taxes over property and extraordinary o Servitude used in common law (personal and real
expenses, which must be reimbursed easements), and they only use easement only for real
Rights over necessary, useful, and luxurious expenses? properties

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Distinguish between positive and negative easements: Ex. On another note, easement over
o Positive the servient estate is either obliged to allow aqueducts can never be acquired by
someone to do something on his property, or to do it himself prescription even if it is A + C, by express
o Negative the servient estate is prohibited from doing provision of the Water Code.
something on his property which he could otherwise do How to count prescription of A+C?
o Give examples of positive easement. 1. Positive: Count period from actual use
Right of way, because the servient estate is required 2. Negative: from notarial act will contain
to let other people pass through his property the prohibition. Not just sending a letter to a
Tree with branch hanging out over neighbors neighbor. You have to have a basis; that
property required to cut you are a dominant estate.
o Give examples of negative easement. X owned a piece of property, where there was a house on the
Easement of light and view cannot block neighbors southern portion overlooking the northern portion through doors
view and windows. X subdivided the property into two: the empty
Distinguish from continuous and discontinuous. northern portion and the southern portion with the house. He sold
o Discontinuous only used in intervals, and with intervention of it to Y and Z respectively. Y wanted to build a house on the
man northern property. Z said that it should be not less than 3 m from
o Continuous constant, no need for intervention of man their boundary. Who wins?
Apparent from non-apparent. o Z wins. Under the NCC, when there is an apparent sign of
o Non-apparent no external signs easement between two properties maintained by the same
o Apparent made known and with external signs owner and these are subsequently alienated to different
Why is the classification needed? owners and there is no intent to the contrary the new
o Positive/negative determines rights owners must respect the easement.
o Continuous/discontinuous and apparent/non-apparent o Apparent easement here is of light and view: demonstrated by
determines how to acquire the windows and doors overlooking the northern portion.
Prescription only applies to apparent continuous o What are the requisites for this rule to apply?
How to acquire easement? 1. Apparent sign of easement in two estates originally
o Title owned by one owner
Juridical act (there is a mode of acquiring ownership 2. The sign was established by the owner
ex. Donation, succession, etc.) 3. One or both are alienated
Or law 4. The contrary was not provided in the deed of
o Prescription conveyance
10 years of use of servient estate Title is there a specific form?
Only covers apparent continuous easements o Under Statute of Frauds, any transaction over real right over
E.g. Easement of right of way can never be immovable property must be put into writing
acquired by prescription, because it is E.g. if you acquire it through tradition, you have to put
apparent, but discontinuous it into writing
If not put into writing, it is unenforceable

69
o If granted on basis of donation: it must be a public writing (both N.B. Check the intent. If a railroad company was
donation and acceptance) and in writing given right of way over several lots to transport sugar
Otherwise, it is void canes, check whether it is only sugar canes that can
o If through succession, it must be through a will be transported, or if he can transport other goods or
What is the meaning of permanence as a characteristic of transport for other persons, etc.
easement? o 2. Cant make the easement more burdensome
o General use: non-use will not extinguish easement Villanueva v. Velasco it is the need of the dominant
o Although, non-user for ten years will also extinguish the right estate that determines the width of the easement
E.g. drainage you are required to have neighbors Rights of the Servient Estate
water pass by you. You see the water and block it. It o To register the easement, even without permission from
is an act contrary to the easement. Non-use kicks in dominant estate
upon the blocking. If servient estate registers land without mentioning
Inseparability? easement, the voluntary easement is extinguished. If
o You cannot separate the easement from the immovable. dominant estate registers his land without mention of
When you sell property, and you do not inform the buyer about the the easement, the easement still subsists.
registered encumbrance? o Retains ownership of the portion where the easement is
o The encumbrance exists established and may use it in a manner not affecting exercise
o But you are guilty for breach of warranty, and the buyer can of the easement
sue you for not telling him about the encumbrance Obligations of the Servient Estate
o When does registration of an estate without mention of the o Cannot impair in any manner the easement
easement extinguish the voluntary easement? o But if the easement becomes very inconvenient to the owner of
If the dominant estate is registered without annotation the servient estate, or prevents him to make important works,
of the voluntary easement in its favor, it still exists repairs, or improvements thereon, it may be changed at his
If the servient estate is registered without annotation expense
of the voluntary easement, the easement is He must provide another place or manner equally
extinguished convenient
Indivisibility How does an easement terminate?
o Increase in number of owners does not increase the burden on o 1. Merger in the same person of ownership of both dominant
the servient estate. There is just one easement. and servient estates
o If servient estate partitioned or alienated, it still doesnt change o 2. Non-use for 10 years
anything. For discontinuous easements: count from last use
Rights of the Dominant Estate For continuous easements: count from contrary act
o To make all works necessary for the use and preservation of o 3. When either or both of the estates fall into condition that the
the servitude easement cannot be used
Obligations of the Dominant Estaete But it shall revive if the condition of either or both
o 1. Cant alter the easement (only for the benefit of the movable should again permit its use
originally contemplated) Except if prescription has set in
o 4. Expiration of term or fulfillment of condition
70
o 5. Renunciation of owner of dominant estate 1. Owner of dominant estate must prove he
o 6. Redemption agreed upon both owners can dispose of the water and it is sufficient
for the use for which it is intended
Legal easements 2. Show that the proposed right of way is the
most convenient and lease onerous to others
Not an exclusive list. There are other kinds.
3. Indemnify the owners of the servient
o Ex. Easements for aerial navigation
estates
1. Easements relating to waters
4. Secure a water right from the National
o What is the legal easement of drainage of waters?
Water Resource Council
Lower estates are obliged to receive waters which
o IMPLICATION: cannot acquire
naturally and without intervention of man descend
aqueduct by prescription
from higher estates, as well as the stones/earth
o Banks of rivers, etc. 3 m, etc. covered by Water code
carried along
2. Right of way
The lower estate cannot construct works that impede
o Most common right of way: road right of way
the flow. The higher estate cannot construct works
o Requisites:
the increase the burden
1. Dominant estate surrounded by other immovables
Water code governs
and there is no adequate outlet to a public highway
To extent not covered by Water code, use
There must be NO outlet, not merely
Civil Code
inconvenient
So lower estates still obliged to receive
2. Payment of proper indemnity
waters from higher estates; and higher
3. Isolation not due to acts of dominant estate
estates cannot construct something to
4. Right of way claimed is at the point least prejudicial
hasten down-flow of water
to the servient estate
Addition by Water Code: servient estate can block this
5. Shortest distance to public highway
flow, but must provide an alternative method of
o Generic rule: you have to pay indemnity to get road right of
drainage
way
o What is the legal easement of aqueduct?
You are not paying rentals, because you have a right
Any person who may wish to use upon his own estate
of way
any water which he can dispose has the right to make
It is a one-time indemnity
it flow through intervening estates
o Exception: Isolation on account of sale/transfer or donation
He must indemnify the owners of those estates AND
[N.B. the rules on sale and donation are inverse]
the owners of the estates where the waters may filter
If you are the buyer of the property and you property
or descend
is in the middle, and is isolated. You are entitled to
What is the nature of this easement?
ask the vendor to give you a right of way. You do not
Continuous and apparent have to pay for that.
Requisites?

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If the one that is isolated is the sellers property, he is 3. Party walls
also entitled to demand right of way. But he has to o Rules on co-ownership can apply
pay o The party wall itself is the servient estate, and the estates are
Donation: if you receive property through donation, dominant
you can demand for right of way, but you have to pay, o You cannot open a window on a party-wall
because its too much to ask if you get it for free na If someone does and the other does not object, you
nga, you burden the donor more pa. can acquire it after 10 years by prescription
If its the donees property that surrounds the property o Maam did not choose to discuss the dimensions, heights, etc.
of the donor, the donor can demand right of way and of windows in detail.
he doesnt have to pay indemnity. 4. Light and view
o Can the width of the easement of right of way be o How do you count prescription for acquisition of
changed? easement of light and view
Yes, from time to time, to suit the sufficient needs of 1. From opening of a window, if through a party wall
the dominant estate. For instance, when the 2. From time of formal prohibition upon the adjoining
dominant estate used to use a tricycle to pass through estate, if window is through a wall of the dominant
the road but changed to a jeep to suit the flourishing estate
plant nursery business, it can acquire from the Through a notarial instrument
servient estate a bigger width. o When is it positive? When negative?
o What is the measure of indemnity? Positive open window through party wall or wall of
1. If easement is permanent and general value of adjoining tenement
land and damage caused Negative open window through wall of dominant
Because here, youre practically taking it estate
2. If easement is limited and merely temporary just o What is the implication of failure to follow minimum
damage caused distances?
3. No indemnity for the two above situations: Cannot acquire by prescription
Sale of land surrounded by other estates of Distances:
vendor 2 meters from other lot if direct view
Donation of land surrounding other estates 60 cm from oblique view
of the donor When the easement already exists, any other
o When can the servient estate demand that the right of way construction must be at least 3 meters away as to not
be extinguished? block the view
When the dominant estate joins with another, which o X built a house adjoining the lot owned by Y. It had
has a right of way abutting a public road. several windows overlooking Ys half a meter away from
In this case, the servient estate returns what he may the boundary line. After 15 years, Y brought an action to
have received by way of indemnity. The interest on close the window. Has X acquired the easement by
the indemnity is deemed payment of rent for use of prescription?
the easement.

72
No. There was no notarial prohibition, so no o 3. Shocks, defies, or disregards decency or morality
prescription can vest. o 4. Obstructs or interferes with free passage of any public
Will the action of Y prosper? highway or street, or body of water
No. Because the action has prescribed after o 5. Hinders or impairs the use of property
10 years. Classify nuisances:
Doesnt this mean X acquired the easement of o Nuisance per se always a nuisance
light and view by prescription? o Nuisance per accidens nuisance by circumstance
No. Because Y can validly build something o Public nuisance affects a considerable number of persons,
or raise a wall that block Xs view. even if the extent may be different
5. Drainage of buildings 1. Criminal prosecution
o What is the rule? 2. Civil action
Roof must be constructed in a way that the rainwater 3. Extrajudicial abatement
falls on his own land or street/public place o Private nuisance only a person or small number of persons
NOT on the land of his neighbor 1. Civil action
o What is an easement on drainage of buildings? 2. Extrajudicial abatement
When rainwater cannot be collected in the required X has a small house where he sells shabu and other drugs. X was
areas stated above, it can be made to pass through caught by the police. The police demolished the house for being a
contiguous lands or tenements where egress may be nuisance per se. Are they right?
easiest and it causes least damage to the servient o No. It is not a nuisance per se because it is not a nuisance in
estate itself and at all times it was just the venue for the illegal act.
6. Trees extending over anothers property What are the requisites before there can be summary abatement of
o Who owns the fruit on the trees? nuisance by a private person?
Still the owner of the tree o 1. Specially injurious to him
But if the naturally fall on the other owners land, the o 2. Demand must first be made to owner/possessor, but was
other owner gets them rejected
o What is the right of the adjacent lots owner? o 3. Abatement approved by district health officer and executed
Demand that branches extending over his property be with assistance of local police
cut off by the trees owner. o 4. No breach of the peace or unnecessary injury is done
CANNOT cut them off himself o 5. Value of destruction not exceeding P3000
But for roots, he may What is the doctrine of attractive nuisance?
o A person who maintains in his premises a dangerous
Nuisance instrumentality of any character which is attractive to children
of tender years at play and fails to exercise due diligence to
What is a nuisance? prevent them from playing therewith
o Any act, omission, establishment, business, condition of o Even if the child is technically trespassing
property, or anything which:
o 1. Injures or endangers health/safety of others
o 2. Annoys or offends the senses
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o Ex. a swimming pool per se is not an attractive nuisance but if Domesticated animals are those taken from
there is an artificial condition or feature that will add another the wild and then tamed.
danger to children, it is an attractive nuisance Occupation over domestic animals cannot be
acquired by occupation unless they had
Modes of acquiring ownership been abandoned. Domestic means that they
are never wild to begin with.
How do you acquire property?
o Intellectual creation
o Occupation o Acquisitive Prescription
o Law Possession + just title (acquired through mode of
o Donation acquiring ownership) + 30 years
o Tradition So valid only if acquired through res nullius (in this
o Intellectual Creation case, its really occupation)
o Prescription Derivative Mode dependent on former owner or title of another
o Succession person
Sale is not a mode, it is tradition o Succession from whom you inherit
Mode:
o Donation from donor
o Process of acquiring ownership o Law
o Mode does not need a corresponding title o Tradition
Title:
o Juridical justification for a mode Donation
o Title needs a corresponding mode
Original Mode not dependent on former owner Requisites of donation:
o Occupation o 1. Decrease or reduction in the patrimony of the donor
Seizing of the property physically o 2. Increase of patrimony of the donee
Not owned by anyone or because there is a previous o 3. Animus donandi or intent to make a donation
owner and has abandoned it Classes of donation:
You do not occupy land; you occupy corporeal things. o 1. Donations inter vivos
Land is never without an owner the State owns it by Simple
default. Except if land was previously owned and it pure liberality
has been abandoned: this does not revert to the Remunerative
State. On account of services rendered by the
If intangible acquired by (1) intellectual creation, or donee, but not a demandable debt
(2) tradition Conditional
Occupation of animals Imposes a charge or burden on the donee
If the animal is wild a person becomes the less than the thing given
owner upon capture. Onerous
Occupation over domesticated animals, after Given in consideration of demandable debt
20 days, unless claim has been made. Actually governed by rules on contract
74
o 2. Donations mortis causa indicates that the donor parted with ownership of the land prior
Actually governed by rules on wills to his death.
Distinguish between illegal and impossible conditions in a simple Property is donated in a deed named donation inter vivos. It
donation from illegal and impossible conditions in an onerous said that the land donated shall be delivered immediately to X
donation: upon the perfection of the donation, with all the fruits thereof, but
o In simple donation, considered not written title shall only pass to the donee upon the donors death. What
o In onerous donation, annul the donation (since governed by is this?
rules of contract) o Mortis causa: the fact that no title or ownership is conveyed
Distinguish between inter vivos and mortis causa donations: until the death of the transferor controls.
Capacity of donor and donee:
Inter vivos Mortis causa o Donor:
1. Must have capacity to enter into contracts
Takes effect independently of Takes effect upon death of donor 2. Must be able to dispose of property
donors death 3. Must not be prohibited or disqualified by law from
Title or ownership conveyed before Title or ownership conveyed only making the donation
death of transferor upon death of the transferor o Donee:
1. Must not be prohibited or disqualified by law from
Valid if transferor survives transferee Void if transferor survives transferee accepting the donation
A, from Manila, offered B, who lived in Cebu, in writing to donate
Generally irrevocable Always revocable his car. Two days after , Bs letter of acceptance reached A, but
before it reached A, A has been confined in the psychiatric/mental
Comply with formalities on donations Comply with formalities on wills
ward. Is the donation binding?
o No. The donors capacity is determined from the perfection of
donation. A donation is perfected the moment the donor
A donation provides that it will take effect after the death of the
knows of the acceptance. Here, before he found out, he
donor, that the donor will not dispose of it or take it away from the
already lost capacity.
donee, that he had beneficial ownership while he lived. Is it inter
Prohibited donations:
vivos or mortis causa?
o By reason of relationship
o Inter vivos, since the donor intended to part with ownership
1. Between husband and wife, except moderate gifts
during his lifetime. Providing that the donor will not dispose of
in family rejoicing or distress
it or take it away means that the donation is irrevocable; thus,
2. And those with amorous relationships, living
inter vivos. It is also clear that he parted with naked title, while
together as husband and wife [here, there is no
maintaining beneficial ownership.
criminal act, unlike adultery/concubinage]
What does a habendum clause and a reddendum clause signify?
o By reason of public policy
o Inter vivos. Habendum cause indicates a grant of the property
1. Parties guilty of adultery/concubinage at the time
before death of the donor, while the reddendum, in so far as it
the donation is made
imposes a condition on how the donees should spend some of
Do they have to be convicted? No.
the income of the property and limits on how to dispose it

75
If they have already parted, then it is valid. Public document specifying the property + charges
2. Guilty of committing the same crime AND in Acceptance must be:
consideration thereof In same deed
You dont have to be both principals Or separate public document. Here, the
When must it be given? donor must be notified in an authentic form,
o It can be given before committing a and the step noted in both instruments.
crime (donation as the inducement) o C. Special rules on form:
o It can be during or after (reward) Onerous donation ordinary contract
Distinguish: for adultery/concubinage it Mortis causa donation formality of wills
cannot be after, and it must be in What is the effect of non-registration? Registration? Actual
consideration of the relationship. Here, it knowledge?
can be after, but it must be in consideration o Non-registration, although the donation of immovable is in a
of the crime. public document only binds the parties thereto
3. Made to public officers, spouses, etc. by reason of o Registration binds the whole world
his office o Third party with actual knowledge bound by the donation
4. Those disqualified under wills apply as well: between the parties, even if unregistered
A. Priest who heard confession or minister X wrote Y, donating in the letter a piece of land. Y accepted by
who extended spiritual aid during last illness means of public instrument. X died. His surviving son, B, wanted
B. The relatives within 4th degree of to cure the defect of the donation by executing a public instrument
abovementioned person, or his church/sect of ratification. Effect?
C. Ward to guardian, before final accounting o No effect. A void contract cannot be ratified. The contract is
o Except if guardian is ascendant, void because it was not in a public instrument.
descendant, or sibling X donated land to Y in a public instrument. Y accepted in a
D. Physician, or other health officer who took separate public instrument. X died before the acceptance could be
care of donor during last illness communicated to him. Valid?
5. Made by individuals, associations, corporations not o No. The constancia autentica (notification of the donor in
permitted by law to do so authentic form) is an essential formal requisite not complied
Formalities of a donation: with. The donation has no effect.
o A. MOVABLE X donated land to Y. Y accepted in a separate instrument, but did
Oral: not communicate it formally to the donor. Y paid taxes over the
Must have simultaneous delivery of thing land, since it was in the black list for non-payment of taxes. Was it
Or simultaneous delivery of document an onerous donation? Was the donation valid?
representing the right o It was a gratuitous donation, because payment of the taxes
Writing: was not a condition/burden imposed upon Y. It was just a
If the propertys value exceeds P5K consequence of the donation.
Acceptance must be in writing too o Thus, since it was NOT an onerous donation, it must follow the
o B. IMMOVABLE formal requisites of a contract. The formal requisite of

76
constancia autentica was not complied with; thus, the donation o 2. Supervening BAR
was invalid until communicated formally. o 3. Inofficious donations
Incapacity that would prevent a person from succeeding: Revocation of donations:
o Testamentary Art. 1027 o As a general rule, these are irrevocable. These cover
Applicable to testamentary succession, but not to donations inter vivos. Donations mortis causa are really based
donation: Witnesses to the will, because there are no on succession, so they are revocable.
witnesses required to a donation o 1. BAR for those with no descendants
o Intestate unworthiness (Art. 1032) A. Birth
Limitations on donations: B. Adoption
o 1. Donor must reserve sufficient means to support himself and C. Reappearance of child
all relatives, who at the time of the acceptance of the donation, These apply to those who have made donations
are entitled to support thinking they will not have successors, and these
Reduce upon petition of such persons would affect their legitime.
o 2. Donations cannot comprehend future property Subject to reduction or revocation. This ground does
Exception: donations propter nuptias in a marriage not consider the donation per se as revoked. It is only
settlement reduced to the extent that it is inofficious
o 3. No more than he may give or receive by will Determine the legitimate at that point in time (this is
Reduce what is inofficious where presumptive legitime is first introduced in the
A donated all his property to a foundation bearing his name, NCC), then determine if what was given exceeded.
ignoring claims of wife and children, except for a provision for What is the prescriptive period?
their maintenance and education during their lifetime. Effects of Period of four years from birth, adoption, or
this donation during As lifetime and after As death? filiation, or receipt of information re: missing
o Valid during lifetime of A. The donee can appropriate all the child
fruits. Cannot be renounced
o Once A dies, it is inofficious. It must be reduced to avoid Transmissible to LCs, ICs, or descendants
impairing the heirs legitimes, upon petition. upon death of donor
Is there a right of accretion in donation? o 2. Ingratitude:
o None, by default. 1. Donee commits an offense against person or
o Exception: H and W jointly. property of donor, spouse, or children under parental
When may a donation inter vivos be revoked? authority
o 1. Supervening BAR 2. Imputation of a crime involving moral turpitude
o 2. Non-fulfillment of condition Is veracity of the claim a defense? No.
o 3. Acts of ingratitude The only time it is a defense, is if the crime is
o 4. Inofficious donations committed to the donee, his spouse, or
When may a donation inter vivos be reduced? children under parental authority.
o 1. Donor did not reserve sufficient means to support himself 3. When donee unduly refuses to support the donor
and relatives entitled to support when there is a legal or moral obligation

77
Prescriptive period? One year from knowledge of X donated property to Y, with a condition. Y failed
the donor. to comply. X sold the property to Z. Valid?
It is purely personal and thus intransmissible No. He has to file a judicial action first within
to ones heirs. 4 years to revoke, unless there is an
What are the exceptions to automatic revocation clause in the donation.
intransmissibility? Rule on fruits for these revoked donations?
o 1. Donor already brought action but o Based on BAR donee entitled to fruits until filing of
died complaint
o 2. Donor prevented from filing o Based on non-fulfillment of condition donee must return the
action due to sickness, fortuitous fruits which he may received after failing to fulfill the condition,
event, etc. along with the property
o 3. Donee killed the donor o Based on inofficiousness donee entitled to fruits while the
o 4. Donor died without knowing act donor lives
of ingratitude
o 5. Donor already instituted criminal
proceedings but died before filing
civil case for revocation SUCCESSION
o 3. Inofficiousness of the donation General provisions
When does this action accrue?
This action ONLY arises when the donor (774) A mode of acquiring ownership
dies o It is not delivery (tradition) that vests ownership. Succession
Unlike supervening BAR which can be filed itself is the mode. You do not need delivery of the thing to the
while donor is alive successors.
Only compulsory heirs and heirs/successors in o In due time, the successor acquires a right to possession of the
interest may bring action thing, which may be in the hands of someone else. But this is
The creditors may only bring about an action of assertion/vindication of possession based on
rescission if it was in fraud of them ownership.
Prescription of four years is counted from the death of What is transferred?
the donor. So even if he donated the inofficious o The inheritance.
donation in 1960, and he died in 1984, the heirs have o Inheritance is defined in 776 as the transmissible rights and
up until 1988 to challenge the donation. obligations of a person
o 4. Non-compliance with a condition imposed o Are there intransmissible rights and obligations?
This is a modal issue Yes.
The donor has discretion 1. Purely personal;
Prescription? 2. Intransmissible by stipulation
4 years from non-compliance 3. Intransmissible by operation of law
Also transmissible to heirs Are these conveyed by succession?

78
No. children are excluded (unlike in the NCC, where they
What are examples? would get something)
A purely personal obligation or right o 2. Even before the actual partition of the estate, the heir can
Ex. Right to receive support from ones dispose can dispose of his/her interest over the inheritance.
parents De Borja v. De Borja the heir was allowed to
Give an example of a transmissible obligation. onerously dispose of her share even if she did not
X entered into a perfect contract to sell his know how much exactly she would get.
car to Y, but it has not been consummated. Could she have disposed of it gratuitously?
X died. This transfers to his heirs. Yes.
o Is a money debt a transmissible obligation? o 3. Heirs have a right to substitute their predecessor in an
Yes. action that survives.
But is it transmitted directly to the heirs? Bonilla v. Barcena
No. It is paid by the estate, upon claim by Patrimonial right right to prosecute an action
the creditor. (Unionbank v. Santibanez) Updates on the abovementioned jurisprudence:
Does this not violate Article 774? o Lee v. RTC (423 SCRA 497)
No. Although the creditors do not claim An heir can sell his right/interest in property under
directly from the heirs, the effect is the same administration. However, an heir can only alienate
what the heirs would have otherwise such portion of the estate allotted to him in the
gotten is diminished, so they are indirectly division of estate.
and ultimately paying the debt. So he can only sell his ideal or undivided share in the
Does this provision on money claims affect other estate, and not specific properties.
claims? o Liu v. Loi (405 SCRA 316)
No. They are still transmitted to the heirs. An heir can sell his interest in the decedents estate,
When does transmission take place? but always subject to the rights of the creditors and
o (777) Transmission takes place from the moment of death the result of the partition.
o This is legal fiction, because you dont really physically get the So if you end up having no share in the estate, then
inheritance at the moment of death. what you sold is subject to the creditors claim.
o Why is it proper to say the rights to succession vest o Heirs of Conti v. CA (300 SCRA 345)
instead of get transmitted? Reiterated Bonilla case: prior settlement of estate not
Because you already have that right, albeit inchoate. necessary for heirs to commence action or continue
It only vests upon death of the predecessor. action pertaining to the estate.
What are the consequences of Art. 777? o Heirs of Pinchay [?] v. Del Rosario
o 1. Determination of who the heirs will be is determined at the Prevented from filing action because the plaintiffs
moment of death; also, what law is in effect; what portions they have not established proof that they are the
will get, etc. decedents heirs.
Uson v. Del Rosario: Decedent died during How to resolve: you can continue an action if you are
effectivity of the old Civil Code, so the spurious indisputably an heir.
What are the three kinds of succession?
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o 1. Compulsory o 3. SS
o 2. Testamentary o 4. ICs
o 3. Intestate Which are primary and which are secondary?
In absence or default of valid will o Primary those who are never excluded
(781) is a WRONG provision. The heirs acquire rights to the Legitimate children/descendants
inheritance upon death. Any fruits/accruals after will indeed belong to o Secondary those who receive only in default of the primary
the heirs, but not through succession, but through accession discrete or Legitimate parents/ascendants
continua. Illegitimate parents
What is the importance of distinguishing between heirs and N.B. does not go beyond parents
legatees/devisees? o Concurring compulsory heirs
o This is an important distinction because of the rules on Surviving spouse
preterition. Illegitimate children/descendants
o Heirs succeeds to an aliquot part of the estate, whether What are the two principles?
through testate or intestate o A) Exclusion and B) concurrence
o These two principles simultaneously operate to establish
COMPULSORY SUCCESSION combinations of compulsory heirs
Legitimary combinations [recit]
Legitimes
1 LC, 1 IC LC = ; IC =
(886) Legitime 1 LC, 2 IP LC =
o A part of the testators property 3 IC, 2 LP, SS LP = each; 3 IC = 1/12 each; SS =
An aliquot or fractional part 1/8
o Which he cannot dispose of gratuitously 2 IP; SS IP = 1/8 each; SS =
Why is gratuitously underlined? 2 AC; 1 LC; 1 IC LC = 1/6 each; IC = 1/12
Because he can dispose of it onerously. He 1 LC; 2 IC; SS LC = ; SS = ; IC = 1/4 each, but
cannot donate to an extent that will eat into reduced to 1/8
6 LC; 3 IC LC = 1/12; IC = 1/24
the value of the legitime.
5 IC; SS SS = 1/3; IC = 1/15
But he can sell his properties. Onerous 1 AC; 2 LP; SS AC = ; SS =1/4; LP = 0
dispositions do not impair the legitime. 3 LGP; SS 1 LGP (one line) = ; 2 LGP (other
(Joaquin v. CA) line) = 1/8; SS =
So he can gratuitously dispose? 1 IC; SS IC = 1/3; SS =1/3
YES. But, he cannot eat into the legitime. 2 AC; 2 LP AC = each
Manongsong v. Estimo: Sale does not affect the 3 LC; 2 IC; SS LC = 1/6 each; IC = 1/12 each; SS =
value of the decedents estate. There is an exchange 1/6
2 AC; 1 LP; SS AC = each; SS =
of value.
Who are the compulsory heirs? (887)
o 1. LC and descendants Legitimate children or descendants
o 2. LPs and ascendants (in default of #1)
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o Get a constant Now, she can concur, and is in fact always an heir. But her
Note: There are only three cases where nobody gets share is variable.
: o What kind of marriage is needed to become a SS?
SS 1/3; IC 1/3 Valid or voidable
SS, exceptional circumstance of in articulo o What is the effect of legal separation?
mortis 1/3 Final decree will disqualify the guilty spouse from
SS 1/4; IP 1/4 inheriting through compulsory, testamentary, or
o They are the primary compulsory heir intestate succession.
o The nearer exclude the more remote. So children exclude Unless there is reconciliation.
grandchildren. Lapuz v. Eufemio: If pending a case for legal
o BUT the grandchildren can inherit if representation is proper separation, one of the spouses dies, the action is
Predecease automatically extinguished and there will be no LS.
Disinheritance o What are the prerequisites to have the SS inherit only 1/3?
Incapacity/Unworthiness 1. SS inherits alone
o N.B. If all the children renounce, then the grandchildren will all 2. The marriage was in articulo mortis
inherit equally (per capita) 3. Decedent dies within 3 months of the marriage
But if only a few renounce and not all, the remaining 4. Couple did not live together for at least 5 years
child/children will get what is left to the exclusion of 5. The decedent was the one at the point of death
the grandchildren upon marriage
o The adopted child is, for purposes of succession, in the exact Illegitimate Children or descendants
position as a LC o No more distinction between natural and spurious children.
Must be legally, not de facto adopted o What if they concur with legitimate children?
o Does the adopted child retain the right to succeed his Always get of one LCs share
biological parents? Their share can be reduced pro rata if the shares
This is still an open question. There is an obiter in the exceed 1 whole. They are less preferred than SS and
Stephanie Garcia case that the adopted child does, LC.
but it is a mere obiter, and it cites a Family Code o What if they do not concur with legitimate children?
provision that might have been repealed by the Variable shares. If with SS, then 1/3. If with IP, then
Domestic Adoption Act. . Alone, collectively. If with LP and SS, then .
Legitimate parents or ascendants o What is the rule on representation?
o Nearer exclude more remote. Parents exclude grandparents. The illegitimate children of an illegitimate child can
o Equal division by line. So paternal and maternal lines split by represent the latter. The illegitimate children of a
half then divide between the parents. legitimate child cannot represent the latter.
Surviving spouse Illegitimate Parents
o Before, in the Spanish Code, she cannot concur with LC; she o Excluded by BOTH legitimate and illegitimate children.
would only get usufructuary right over the property of the LC. o No succession for illegitimate ascendants beyond IPs

Preterition (854)
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What is preterition? o Not always! [ex. there was no disposition in his favor]
o Total omission of a compulsory heir in the direct line from the X has two children, A and B. X made a will giving B of his
inheritance. estate, and the other half to Ateneo. X did not give A anything by
o What is the mistake of the judge in Seangio? way of donation inter vivos either. But A predeceased X. Is there
He said that it is total omission from the will. It must preterition?
be total omission from the inheritance. o No. A predeceased. You only determine fact of preterition
When is a compulsory heir completely omitted? upon death of testator. (JLT Agro)
o When he gets nothing in the way of: [Same facts] A, however, had a son A1. A predeceased X still. Is
1. testamentary (institution of heir) disposition there preterition?
2. legacy or devise o Yes. But not of A, but of A1.
3. intestate succession o Does it matter than A1 was born after the will was made?
4. donation inter vivos It does not matter. The reckoning point is still time of
Dont forget donation inter vivos! death of the testator, not time of making the will.
and he was not disinherited. o What is the effect?
Why does it mention compulsory heirs in the direct line? Who is The entire estate is thrown open to intestacy because
a compulsory heir not in the direct line? there are no legacies or devises.
o The surviving spouse. X said I will disinherit my son B because he took up law, not
o So who is covered? medicine. Is this a valid disinheritance?
It can be LC, IC, and as circumstances apply, LP or o No. It is not one of the grounds. It is rendered ineffective, and
IP therefore, there is no preterition.
o How do you determine who are the compulsory heirs? [Same facts] But the second sentence now says, in addition, so
Determine only at the time of death because that is I give of my estate to Ateneo, and the other 1/2 to my brother Z.
only when the rights to succession vest. What happens here?
What if there is something is given but is insufficient? o There was no preterition. So X will get his legitime because
o Remedy is completion of legitime (906) the disinheritance is ineffective. The dispositions in favor of
What is the effect of preterition? Ateneo and Z are valid but inofficious, so these will just be
o Annulment of the institution of heir. But legacies and devises reduced but not rendered invalid. [Take note of this
are valid in so far as they are not inofficious. scenario]
o If there are no legacies or devises, the entire estate is thrown o Why does it become like this? Because preterition will only
open to intestacy. apply when there is inadvertent omission from the will (without
Does the fact that an heir is not mentioned in the will mean that he the heir being expressly disinherited). An ineffective
is preterited? disinheritance, thus only results into the heir being able to
o No, if the will does not dispose of the entire estate. (Seangio) demand his rightful share. Preterition does not vest.
If someone dies intestate, can there be preterition?
o No. Disinheritance (915-923)
Does the fact that an heir is mentioned in the will mean he is not
What is the effect of disinheritance?
preterited?
o Primary effect exclusion from the legitime
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o Actual effect TOTAL exclusion of the heir from all manner of o There must have been a prior demand, and the demand must
succession: exclusion of the heir from the legitime and the have been unjustifiably refused.
intestate portion, if any, and also from testamentary succession What is maltreatment by word or deed?
is instituted in an earlier will. o It covers a wide range of misdeeds, but it must be verbal or
Requisites? physical assault of a serious nature
o 1. Made in a will o No need for conviction
Can you disinherit in a medium other than a will? What is abandonment as a ground to disinherit a parent?
No. ONLY through a will. o Complete withholding of presence, love, care, and opportunity
o 2. Done for a cause specified by law. to display maternal affection; total denial of support and
o 3. Specify the cause maintenance
o 4. Must be unconditional o See discussion below in unworthiness
o 5. Must be total Must there be conviction in Attempt against virtue?
o 6. Cause must true o No.
o 7. If the truth of the cause is challenged, the truth of the cause What is giving cause for legal separation as ground to disinherit
must be proved by the proponent a spouse imply?
What is the policy of the law? o No need for decree of legal separation, because merely giving
It is reluctant to grant disinheritance. This is ground is enough
why the burden of proof is automatically with o Contrast this with loss of parental authority as a ground
the proponent of the will. The rebutting heir to disinherit a parent:
is not tasked to prove the denial. Need actual loss of parental authority for this ground
Take note of the following: Is there representation in disinheritance?
o 1. Some of the requisites require conviction by final judgment. o Yes, if the disinherited heir is a descendant.
Example: Number 1. Mere attempt to take the life is Also for brothers/sisters being represented by
not enough; there must be conviction. nephews/nieces but only in intestacy and not
But some do not need final conviction, like compulsory (because brothers/sisters are not
Maltreatment by word or deed compulsory heirs)
Living a dishonorable life o No, if the disinherited heir is an ascendant.
o 2. The grounds are exclusive. o N.B. representation does not apply to testamentary succession
o [The grounds are discussed in a table below] (obviously).
Which grounds require conviction by final judgment? o What does representation cover?
o 1. Attempt against life of testator, spouse, descendant, Compulsory and intestate succession
ascendant See rules on representation for further distinction
o 2. Adultery/concubinage with spouse of testator Does the disinherited parent have right to usufruct or
o 3. Conviction of crime which carries with it penalty of civil administration of the property constituting the legitime?
interdiction o No. The usual rule in the FC that the parents are legal
What is the special requirement for the ground of refusal to give guardians of the childs property does not apply to a
support? disinherited parent.

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How can disinheritance be lifted? Abandonment has no precise meaning. How do
o Reconciliation between the parties. we understand it here?
o It may be oral, in writing, or by conduct (implied). When the parent/ascendant culpably
o What must be the form of express pardon? neglects the support of the child. Culpably
It must be a pardon expressly and concretely means without justification.
extended to the offender, and not a mere general What about giving consent to adoption, is it
pardon extended to all who have offended him abandonment?
o What is the nature of pardon through conduct? No. It is not a culpable act. It is encouraged
The intent to forgive must be clear. This is a question by law.
of fact. o 2. Inducement by parent for daughters to live a corrupt or
What is the effect of reconciliation? immoral life
o It removes the disinheritance. Re: inducement. What about
o Does he recover legitime? grandchildren/granddaughters? What about
Definitely. The heir recovers his right to the legitime. grandsons?
o Does he receive anything by intestate succession? A liberal interpretation would include all
He recovers the right to the intestate portion, if there these.
is any left. o 3. Attempt against virtue of daughter
o Does it revive testamentary dispositions in a prior will? Attempt against virtue?
Yes, unless it was revoked. This should include grandparents
o What if there is reconciliation before disinheritance is Does this need conviction?
made? No.
The right to disinherit is extinguished What does attempt cover?
All stages of commission.
Unworthiness (1032-1040)
Also not limited to rape: it should cover other
offenses against chastity.
1032 enumerates causes for incapacity to succeed/unworthiness and
Are the grounds exclusive?
there is a close parallel with disinheritance. As with disinheritance,
o Yes.
there is need for final conviction for some, not for others, and one
Do you need actual disinheritance?
requires exoneration.
o No. The law itself excludes the heir.
First ground (actually three):
What is the extent of the disqualification?
o 1. Abandonment of child
This article refers to unworthiness of compulsory o Total, like in disinheritance no compulsory, testamentary,
heirs. Parents who have abandoned their intestate
children. But what if the child is under the Is there representation here?
authority of grandparents, will this apply? o Yes, in the same way as disinheritance.
RFB thinks so. It should probably be How does one set aside unworthiness?
ascendants who abandon descendants. o 1. Written condonation

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o 2. Execution by offended party of a will with knowledge of the In good faith if he acquired the thing for value (cant
cause of unworthiness be a donation) and without knowledge of the defect of
o Viz: in disinheritance, there can be implied reconciliation the transferors title
Why is the code stricter in unworthiness than disinheritance? o 2. But the co-heirs can recover damages regardless from the
o This is an inconsistency, because there are many grounds disqualified heir
common between both unworthiness and disinheritance. This o 3. But for necessary expenses, regardless of GF or BF, there
happens when if the offended party avails himself of that must be indemnification of the disqualified heir
ground and actually disinherits. What is the nature of the possession of the disqualified heir?
o Ex. X is the son of Y. X attempts to take Ys life. A case for o Possession in BF. Thus, must return the thing, with all its
frustrated parricide was filed, and he was convicted with final accessions, and all the fruits he actually and could have
judgment. It is a common ground in unworthiness and received
disinheritance. So in this case, he is automatically unworthy. What is the prescriptive period to declare incapacity and recover
But Y still disinherits X, which he can do. There is no problem property from the disqualified heir?
here; he is just double dead. But what if X and Y reconcile? o Five years from time of possession
Y admitted X back into his house, and forgave him orally.
Under the rules on disinheritance, reconciliation is enough to Grounds for disinheritance and unworthiness:
set aside the disinheritance. But because there is no written
pardon, the unworthiness persists. D of child/des D of parent/as D of spouse Unworthiness
o How do we resolve this? Attempt against Attempt against Attempt against Attempt against
life3 life life life
Commentators like Tolentino say that it is the rules on
Accusation of Accusation of Accusation of Accusation of
disinheritance that prevail, because disinheritance is crime4 crime crime crime
the express will of the aggrieved party. It should Adultery/conc.5 Adultery/conc. Adultery/conc.
prevail over unworthiness. Force to change Force to change Force to change Force to change
If the facts are the same but Y did not disinherit X, will will will will
unworthiness will apply. So there has to be a written Refuse to Refuse to Refuse to
pardon. support support support
When is capacity or incapacity determined? Maltreatment by
word/deed
o 1. In general, upon time of death of decedent
Dishonorable life
o 2. If institution is subject to a suspensive condition: Crime with civil
Time of decedents death AND interdiction
Happening of the condition Abandoned, Abandoned,
o 3. If judgment is a requisite of unworthiness, time of final induced to induced to
judgment corrupt life, corrupt life,
What if the disqualified heir makes alienations of hereditary attempt v. virtue attempt v. virtue
property and acts of administration?
3
o 1. As to third persons in GF, these are valid Of testator, spouse, ascendants, or descendants need conviction
4
Crime must be 6 years or more and found groundless
5
With testators spouse; Needs conviction
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Loss of P.A. Loss of P.A. 1. Abandonment, corrupting influence, attempt at
Attempt by one virtue
parent against 2. Prevent making or revocation of will
life of other 3. Falsification or forgery of will
Cause for LS
Prevent from Representation
making will or
revoking one
Definition of representation?
Falsification or
forgery of will o The representative is raised to the place and degree of the
person represented and acquires the rights which the latter
would have if her were living or if he could have inherited
Tips to remember the grounds: When does representation apply?
o A. Common five grounds: o 1. Predecease,
1. Attempt against life o 2. Disinheritance,
2. Accusation of crime o 3. Unworthiness/incapacity
3. Forced to change will o There is no representation in renunciation
4. Adultery/concubinage with testators spouse In what kinds of succession does representation operate?
Except D of spouse, because obviously o 1. Compulsory
he/she cannot screw him or herself o 2. Intestate
5. Refusal to support In what lines does representation obtain?
Except U; its not automatic o For compulsory succession
o B. Grounds for children: involve being a disappointment to their ONLY in the descending direct line.
ascendants: N.B. NEVER in ascending.
1. Maltreatment o For intestate succession
2. Dishonorable life 1. Direct descending line
3. Civil interdiction 2. One instance in collateral line: nephews and nieces
o C. Grounds for ascendants: being bad parents/examples representing brothers and sisters of the deceased
1. Abandonment, corrupting influence, attempt at What is the rule on adopted children?
virtue o Cannot represent nor be represented, because the legal
2. Loss of PA relationship in adoption is strictly between adopter and
3. Attempt against life by one against the other adopted.
o D. Grounds for spouse: just loss of PA and cause for legal What is the rule on representation by illegitimate children? (iron
separation curtain)
1. Loss of PA o Illegitimate child of a legitimate child cannot represent the
2. Cause for legal separation latter.
o E. Grounds for unworthiness: two grounds involving fraud in o Illegitimate child of an illegitimate child can represent the latter.
making of the will + triple-ground o If the child is legitimate, he can always represent his parents.
What is the rule on shares of the succeeding representatives?
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o Since they are only stepping into the shoes of the person o 2. Representative need not be qualified to succeed the person
represented, they could get unequal shares (per stirpes). Ex. represented (e.g. C need not be qualified to succeed B)
A had 2 children, B had 3. Both A and B predecease their o 3. The person represented need not be qualified to succeed
father, X. The 2 children of A split As share by each and the representative (e.g. B need not be qualified to succeed C)
the 3 children of B split Bs share by 1/3 each. What is the difference between representation OF and BY a
o When does the rule change from per stirpes to per capita? renouncer?
The rule changes when ALL, and not just some, of the o Representation OF renouncer does not happen
children renounce. The grandchildren will inherit per o Representation BY renouncer can happen.
capita. Illustrate this rule. ABC. C renounced Bs
o What if all children predecease? inheritance. But C can represent B if B predeceases
The grandchildren still inherit by representation, and A, because C is inheriting from A, not B.
not per capita.
o How does the rule change for the sole case of Reserva troncal
representation in the collateral line?
A, B, and C are brothers and sisters of X. If A and B What is Reserva Troncal?
predecease X, then the children of A and B inherit per o See Article 891
representation. Whats the purpose of reserva troncal?
But if ALL of A, B, and C predecease (or are o To keep property or return property to the line of origin.
disqualified) the nieces and nephews of X will inherit (Sanchez Roman view)
per capita. NOTE that this is different because in the What are the requisites of RT?
descending line, it will be still succession by o 1. Person acquires property from ascendant or brother/sister
representation. through gratuitous title
What if there is renunciation by all collateral o 2. Dies without legitimate issue
heirs? o 3. Inherited by another ascendant through operation of law
Same rule as direct line heirs: the nephews o 4. There are relatives within the 3rd degree of consanguinity
and nieces will inherit per capita. from the prepositus belonging to the line from where the
N.B. there is no distinction among the kinds of property came
disqualifications in collateral representation, so as Why is the reserva troncal included in compulsory succession?
long as all brothers/sisters die or renounce (no such o The RT can limit the operation of the legitime
thing as disinheritance or unworthiness for brothers o If that part which is reservable passes as legitime, the law says
and sisters), the nephews/nieces inherit per capita that it should pass with no burden. But if it passes as RT, it will
o Is it even relevant to talk about disinheritance or be under the burden of RT because the law says so.
unworthiness for collateral heirs? o Its better to take it up as part of compulsory succession
Its not. You cannot disinherit a brother or sister because it can become an encumbrance on the legitime.
because hes not a compulsory heir. What are the two transmissions that have to take place?
What are the 3 rules on qualification? o 1. By gratuitous title, from the origin to the prepositus
o 1. Representative must be qualified to succeed the decedent This can include donation or any kind of succession
(e.g. C must be qualified to represent A) o 2. By operation of law, from the prepositus to the reservista
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ONLY compulsory or intestate succession RT. According to Manresa and Sanchez-
What if there is only one transmission? Roman, there is an RT.7
o There is no RT. There have to be two transmissions for there o 4. Reservatarios
to be RT. They must be related within the third degree, in
o Solivio: there was just one transmission from the mother to the relation to the prepositus, and of the line where the
son, by donation. When the son died, he had no ascendants property originally came from
at all or descendants either. Because there was no other N.B. Of course exclude legitimate
ascendant, the second transmission could not happen. The descendants, since if the prepositus had
closest relatives are two aunts, who are not ascendants. decendants, there would have been no RT
Who are the parties in RT? Who are these possible reservatarios?
o But first, two basic rules: Parent, grandparent, great grandparent,
1. All of these parties must be legitimate. If any of the Brother, sister, nephew, nieces, uncles,
relationships is illegitimate, there can be no RT. aunts
2. No further inquiry beyond the origin is required Note: in the situation that JBL seeks to exclude (but
o 1. The origin Manresa favors), there is no need to make a
Ascendant of prepositus, of any degree, of either line distinction since there is no change in lines.
Or brother/sister of prepositus, either full or half blood When do you determine who the reservatarios?
If full blood, Manresa says yes. JBL says When the reservista dies. They do not have
no, because there is no possibility of the to exist when the prepositus dies.
property leaving the line. The ascendant If there are several, but of different degrees, how
lines are common.6 do you determine who gets what?
o 2. Prepositus Tolentino: Selection is made on preferential
o 3. Reservista basis, not integral and indiscriminate, as
Has to be a different ascendant from the origin Scaevola believed.
Must he be another ascendant from another line Apply the rules on intestate succession
or can it be same line? (direct over collateral). Another rule of
If another line, no question he can be a intestacy that applies is representation of
reservista. (Ex. F S M) nephews or nieces of brothers/sisters [so the
If same line (Ex. GF grandson F [same brothers/sisters do not exclude
line as grandfather, since he is the son of the nieces/nephews].
grandfather]), according to JBL, there is no What is the consequence?
Gonzales: The reservista cannot choose, by
will who the reservatarios will be. The law
chooses for her.
6
The difference is explained by different theories. JBLs view is that RT is
curative or remedial; if it does not leave the line, no need for RT. Manresa
7
says that it is preventive, too the RT seeks to prevent the property from Again, the source of disagreement is a different in theories on nature and
leaving the line as well. purpose of RT. RFB leans towards Manresas and Sanchez Romans view.
88
Should the reservatario be related to the origin? What kind of property can be reserved?
A1 and A2 have a child, B1. B1 is married to o Any type
B2, and have a child C. A1 donates property o What is the effect of substitution (e.g. the prepositus sells
to C. B1 died, when C dies, it goes to B2. the property)?
Thus, there is an RT here. When B2 dies, No RT because it must be the very same property
A2 survives and claims the property as that goes through the two transmissions for RT to
reservataria (since she is related by 2nd arise
degree to C, the prepositus). What is the nature of the reserved property when the reservista
MANRESA she is a reservataria, she dies?
meets the purpose and requirements o Its not part of his estate upon death. It passes by strict
SANCHEZ ROMAN she is not, because operation of law to the reservatarios.
you didnt return it to A1s line and A1s What are the rights and obligations of the reservatarios and
relatives. A2 is not related . reservistas?
So what is the majority view? o Reservista prepares inventory
The reservatarios must be related by blood o Right of reservatarios to annotate in case the reservista
to the origin. alienates (within 90 days from acceptance by the reservista)
This is not yet established by jurisprudence, o Appraise the movables
but this is a good view point. o Secure by means of mortgage
What is the nature of the right of the reservista? (Edroso) o Registration is demandable Sumaya
o 1. Right of ownership What are the causes for extinguishment of RT?
o 2. Subject to the resolutory condition that there will be o 1. Death of reservista (causes it to transfer)
reservatarios present upon the reservistas death o 2. Death of all the reservatarios
o 3. The right is alienable, subject to the same resolutory o 3. Renunciation by all the reservatarios, and none is born
condition subsequently
4. The right of ownership is registrable o 4. Total fortuitous loss of the property
What is the right of the reservatarios? (Sienes) o 5. Merger or confusion of rights
o 1. Right of expectancy o 6. Prescription or adverse possession
o 2. Subject to a suspensive condition, that there will be
reservatarios present upon the reservistas death TESTAMENTARY SUCCESSION
o 3. The right is alienable, subject to the same suspensive
In general
condition
o 4. The right of expectancy is registrable
What is the nature of making of a will?
o Dont these two rights of registration conflict with each
o It is a strictly personal act. It cannot be delegated.
other?
o The mechanical aspect is delegable but not the disposing
No. Theres only one title. The right of the reservista
power.
is annotated as ownership; the right of the
o What cannot be delegated?
reservatario is annotated as an encumbrance.
1. Designation of heirs, legatees, devisees
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2. Duration or efficacy of the designation Putting it positively, one must be a natural person 18
3. Determination of the portions they get years old or above and of sound mind.
o What is the exception to non-delegation? What must you know to establish a sound mind?
The testator must determine: a) property or amount of 1. Character of estate
money given, and b) the class or cause to be 2. Proper objects of your bounty
benefited. 3. Nature of the testamentary act
And then he may delegate to a third person: a) the Is there a presumption?
designation of persons, institutions, establishments Yes, a rebuttable presumption of
within the class or cause, or b) manner of distribution testamentary capacity
Testamentary succession can never impair the legitime When is there no presumption?
What is a will? o 1. If the testator, 1 month or less
o An act instrument whereby a person is permitted, with the before the making of the will, was
formalities prescribed by law, to control to a certain degree the publicly known to be of unsound
disposition of his estate to take effect after his death mind
What are the two kinds of wills? o 2. When the testator has been
o Holographic and attested/notarial placed under guardianship for
What are the three common requisites for both attested and insanity
holographic wills (first two, textual; one is non-textual)? What is the presumption then?
o 1. It must be in writing o There is a presumption of insanity,
o 2. Executed in a language or dialect understood by the testator not just a presumption of sanity.
Is this rule mandatory? Again, this is rebuttable
Definitely. Where must the testator sign?
So can the will be translated to the testator? o 1. He must sign the will
No. It must be written in a language known o 2. Also every page at the left hand margin, except the last.
to him. Do not confuse this with the o How can the testator usually sign?
attestation clause, which can be translated. He writes his name
Must the will state it was written in a language o What are the other recognized ways?
known to the testator? Affixing thumbmark (Matias v. Salud)
No. It can be shown by extraneous Is the thumbmark for the testator always a valid
evidence/evidence aliunde. way to sign the will?
o 3. Testamentary capacity Yes. Under all circumstances, even if not
Who can make a will? infirm or ill.
Natural person (juridical person cannot make Is a cross allowed (Garcia v. Lacuesta)?
a will) No, in general.
Who are the two classes of disqualified persons? THE EXCEPTION: If that is his usual way of
Those below 18 years old signing.
Those of unsound mind

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o There are two ways of interpreting the word the end, At the end of the attestation clause.
where the testators signature should be. What are these? Can they sign at the margin or elsewhere
1. The physical end, where the writing stops (beside)?
2. The logical end, if there are non-dispositive No. The attestation clause is deemed
portions written in the will unsigned.
o Must the signing always be at the left margin? o What must the attestation clause state?
No. It can be any margin. 1. Number of pages of the will
Why is there no requirement for marginal signing 2. Fact that the testator signed the will and all the
on the last page? pages thereof, or caused some other person to write
Because it would be superfluous. He also his name under his express direction, and in the
signs at the end. presence of the instrumental witnesses
The testator must sign in the presence of the witnesses. The 3. That the witnesses signed the will and all the pages
witnesses must also sign in the presence of the testator and of one thereof in the presence of the testator and of one
another. What does the law mean by in the presence? another
o Nera: The requirement of presence does not mandate that the Must the attested will bear a date?
person must actually see the other party signing; what is o No.
required is that he could have seen, by casting his eyes in the o Why?
proper direction (without changing his physical position). The certification in the acknowledgement will be dated
One of the options given to the testator is that he/she may ask anyway.
someone else to sign for him, provided some conditions are o Who certifies?
present (1. Express direction; 2. In his presence). The notary public as required by the notarial law.
o Should the testator be physically prevented from signing o Viz: should a holographic will be dated?
or have any particular reason to get an agent? Yes.
No. What if the notary public acted outside his notarial jurisdiction?
o What should the agent write? o It is void and tantamount to not being notarized.
He must write the testators name If the will was notarized by one of the witnesses, who was also a
It must be in the agents own handwriting notary public, will this make the will void?
o Must the agent write his own name? o No, if there are three other witnesses apart from the notary.
It is not required. o If there are less than three witnesses including him?
Must the attestation clause be signed? The will is void. There is a failure to meet the
o Yes. required number of witnesses.
o By whom? o But can a notary public be a witness?
The witnesses. Definitely. But the notary public cannot be counted as
o What about the testator? a witness, and the witness cannot be the notary public
No. The attestation clause is purely an affair of the too. For the latter, you are undermining the notary
witnesses. publics impartiality.
o Where should the witnesses sign the attestation? What is the requirement if the testator is blind?

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o Two readings by the notary public and by one of the attesting o Azuela: Deficiency was failure of the clause to state the
witnesses. number of pages, which was left blank. HELD: valid omission,
o Is this mandatory? because it can be supplied by a visual examination of the will.
Yes. Non compliance makes the will void. Requirements of a Holographic will?
Should this mandatory nature extend to illiterate o Completely written, dated, and signed by the testator
deaf mutes? o Roxas v. de Jesus: Feb/61 was held as a sufficient date this
Yes. is a problematic decision. Fortunately, there was no other will
Of course, the two persons need not be the also made in Feb/61, which could have possibly repealed it. In
notary and one witness; it can be whoever a very liberal decision, it was upheld.
can practicably communicate the wills o Where should the date be?
contents to him There was no mention where it should be. It could be
o Must the will or attestation clause mention compliance in the body.
with this mandatory requirement? o Can you sign by a thumbmark, as in an attested will?
No. It can be established by extrinsic evidence. Seems unlikely. It must be written by the hand not
o Garcia: The lawyer who assisted the testator read the will. a thumbmark. Though there is no jurisprudence on
It was read only once. The lawyer, however, read it aloud this.
in the presence of the attesting witnesses and the notary 813-4 dispositions after the signature
public, who had their own copies of the will. The testator o Some commentators say that this implies that the signature
was also listening. Art. 808 was hence not complied with. must be at the bottom of the holographic will.
But is this valid? o If there is only one additional disposition, it must be written and
This is valid, because there was substantial signed by the testator.
compliance. The intent of the law was achieved to o If there are several, what is the rule?
prevent fraud upon the testator. 1. Dated and signed
o Alvarado: Invalid because it was done by the lawyer who 2. Or each additional disposition may be signed,
drafted the will who read it aloud, so it wasnt even one of the provided the last one is dated and signed
two parties enumerated. And he read it out loud only once. What is required for insertions, cancellations, erasures, or
Art 809 is the provision on substantial compliance with respect to the alterations in holographic wills?
attestation clause, which needs three things (# of pages, fact that the o It must be authenticated by the testator through his signature
testator signed at the end in the presence of the witnesses, and that the o Kalaw v. Relova: Cancellation of the name of the original heir
witnesses did the same in the presence of the testator and of one and writing above it of the name of another heir invalid
another). How strict must this be in light of Art. 809? because it was not validated, because it was not signed.
o In the code itself, there is no clear rule about how liberal o But the court weirdly held that the cancellation was valid! But it
interpretation could be. was not signed. This is an odd decision, because it had an
o Caneda: defect was failure to state that the witnesses signed internal contradiction.
in the presence of the testator and of one another. HELD: Are joint wills allowed?
This was a fatal defect. Adopting JBL Reyess suggested o No.
standard, it could not be remedied by visually examining the
will.
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o But for aliens, if they execute their will abroad and their o Sometimes its hard to determine whether it is a codicil or a
national law allows it, then its valid. second will.
o If aliens execute it locally, there are two views: its either valid If it makes an independent disposition, it is a second
because national law allows it, or it is void due to public policy. will.
o If a Filipino and alien execute a joint will, its always void as to If it alters, modifies, changes, it is a codicil.
the Filipino. o But honestly, this distinction is academic, because the
What are the requisites to become a witness to a will executed in requirements of a codicil and a will are just the same.
805? o 827 An incorporated document. It is attached to a will and
o 1. Of sound mind is intended to explain. It cannot make a testamentary
o 2. At least 18 years old disposition because otherwise, it has to comply with the
o 3. Not blind, deaf, dumb requisites and form of a will.
o 4. Able to read and write Requisites?
o 5. Domiciled in the Philippines 1. It must predate the will
o 6. Not convicted for falsification of document, perjury, or false 2. It must be signed on every page by the
testimony testator and witnesses, except if it is
o What do these qualifications establish? voluminous
Competence only, but not credibility per se 3. It must be clearly referred to in the will
o When is competence of the witnesses needed? 4. It must be referred to in probate as that
During attestation only. If they become incompetent document
after, it has no effect. So since it requires witnesses, can you not have
When is a witness to a will disqualified to succeed? an incorporated document with holographic wills?
o When he is a witness to a will where something is given to him, Some say you cannot because there are no
his spouse, parent, or child witnesses. RFB says that you must interpret
o What is the effect? it liberally, and since there are no witnesses,
The will is valid but the witness cant succeed to the then it just means its just the testator that
will signs.
o How many witnesses are needed for this provision to Two modes of testamentary succession:
apply? o 1. Institution of an heir
Only three witnesses. If there are at least three other o 2. Institution of devisee or legatee
competent witnesses, there is no disqualification What is the permissible form of instituting a successor, whether
o What kind of succession is affected? heir, devisee, or legatee?
Only the testamentary dispositions, but not legitime or o Only thing required is that the identity of the successor is
intestate share because this is not affected by the adequately determined in the will. No need to mention by
witnessing (i.e. if the witness is a son of the testator) name, as long as the successors identity is determinable.
Codicils and incorporation by reference (825 and 827) I institute my brothers and sisters to of the share of my estate.
o Article 825 defines a codicil. This is exam material. It assumes What does this mean?
the existence of a prior will. You cannot have a codicil without
a prior will. It can explain or alter the prior will.
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o Siblings, whether legitimate, illegitimate, or half, inherit in equal TYPE OF CIRCUMSTANCES EFFECT
shares. DISPOSITION
o This is different from intestacy, where whole, half, and General rule Giving a thing in legacy Decedent just gives what his
illegitimate siblings inherit in 2:1:0 ratio. (You cannot inherit or devise interest covers
He gives more than he The estate will attempt to
from your illegitimate sibiling)
owns acquire it. Failing to do so, it
What is the rule on statement of false causes on a will? gives the monetary
o In general, it is deemed not written. equivalent.
o Exception requisites: He gives less than he He gives just that
1. Cause must be false owns
2. It must be shown to be false Legacy or He can give an order to The estate will attempt to
3. It must appear on the face of the will that the devise of acquire it acquire it. Failing to do so, it
something gives the monetary
testator would not have made the institution had he
belonging to equivalent.
known of the falsity of the cause another
If heirs are given different fractions each, and the total is less than Testator thought he Void disposition, except if
the free portion, what happens? (852/3) owned the thing subsequent to the disposition,
o The rest of the free portion goes into intestacy. the testator acquired the thing
o But what if it is shown that the testator intended to gratuitously or onerously
dispose the entire free portion? He knew he did not own Implied order to acquire
it, but did not give an
If the disposition is less than the portion, you increase
order to acquire
proportionately. If more, you decrease Thing already If it already belongs to Void disposition. Subsequent
proportionately. belongs to the the devisee/legatee alienation by the D/L does not
devisee/legatee validate it, unless it was in
924-959 Legacies and devises (D/L) favor of the testator.
Testator thought he Void disposition; the testator
Some provisions are inaccurate. It is the estate that is liable for owned the thing, and was still in error
legacies and devises, not compulsory heirs as 925 says. You cannot then the D/L acquired
charge the compulsory heir for the legacies and devises. Exception: the thing
indirect legacy Testator knew it did not The estate pays the value
belong to him, and then
What is the liability of two or more heirs who take possession of the D/L acquired it
the estate? onerously
o Solidarily liable for loss or destruction of the thing devised or Testator knew it did not There is nothing left to be
bequeathed, even if only one is negligent belong to him, and then done
Who is liable for eviction? the D/L acquired it
o In general, the estate onerously
Testator owned it when Void disposition (because any
o For subsidiary legacy or devise the heir, legatee, or devisee
he made the will, but subsequent disposition, even
charged the D/L acquired the to the D/L himself nullifies the
thing from him after disposition)
929-937 outline: D/L directing In general The estate pays for it
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the estate to o It exists if one provides that among several things mentioned
remove only one is given.
encumbrance o Who has right of choice?
from anothers 1. In general, the estate, acting through the E/A
property
2. In a subsidiary legacy or devise, the heir, legatee,
Pledge/mortgage The estate pays for it first
Any other kind of Passes with the things or devise charged
encumbrance like If he dies, his heirs choose
easement 3. If so provided, the legatee or devisee
Legacy of Giving to the legatee Effective as to the remaining o What is the nature of the choice?
credit or the debt owed to the debt owned upon the testator Irrevocable
remission testator by another when he dies What is the rule on validity of generic legacies/devises?
person
o 1. Generic legacy valid even if no such movables exist in the
If the testator sues that Ipso facto revokes the legacy.
other person Mere filing in court already testators estate upon his death (estate just acquires it)
revokes the disposition; o 2. Generic devise valid only if there exists such an
however, extrajudicial immovable in his estate upon death
demand does not revoke the o Who chooses?
disposition. The executor or administrator
Generic disposition of Covers debts existing when Except if the choice is expressly given to someone
debts the disposition was made.
else
Ex. X owed Y 2 debts in o What is the limitation?
1999. Y, in his will, gave Z Neither superior nor inferior in quality
the debts X owed Y. X o What is the nature of the choice?
owed Y 3 more debts in Irrevocable
2001. Y died. What debts Legacy of education, support, or periodical pension:
transfer?
o A. Education
Just the 2 existing when the
will was made. Lasts until age of majority or completion of the course,
whichever comes later
Amount as fixed by the testator; secondarily, that
which is proper, depending on social standing or
What is the treatment of a legacy/devise to a creditor? value of disposable portion of the estate
o It will be treated like any other legacy or devise and will not be o B. Support
imputed to the debt. Lasts until the legatees lifetime, unless the testator
o What is the exception? provides otherwise
Imputed to the debt if the testator provides so. If the Amount as fixed by the testator; secondarily, that
debt exceeds the legacy/devise, the remainder may which the testator used to give when he was alive
be demanded as an obligation of the estate unless disproportionate to the estate value; tertiarily,
When are there alternative legacies or devises? social standing or value of the disposable portion of
the estate
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o C. Legacy of a periodical pension o 2. Accretion
Demandable upon the testators death, and o 3. Intestacy
succeeding ones at the beginning of the period When is a legacy or devise without effect?
without duty to reimburse should the legatee die o 1. Transformation
before the lapse of the period Converted the thing
What is the order in 950 for reduction? (i.e. what is the order of o 2. Alienation
payment of legacies/devises if there is not enough) Either onerous or gratuitous, and even if the thing
o 1. Remuneratory reverts to the testator
o 2. Preferred Exceptions?
o 3. Legacy for support 1. Reversion was caused by annulment of
o 4. Education alienation because there was vitiated
o 5. Specific thing consent
o 6. All other, pro rata 2. Reversion due to redemption in a pacto de
What is the rule in 911? retro sale
o 1. Reduce pro rata non-preferred legacies and devises o 3. Total loss before the testators death
o 2. Reduce pro rata preferred legacies and devises
When do you use which? Rules common to heirs, legatees, and devisees
o If the reason for reduction is impairment of legitimes, use Rule
in 911 (non-preferred, then preferred). Capacity to succeed:
o If the reason for reduction is something else, use Rule 950. o In fact, the basic rules are common to all kinds of succession
o What other reasons could exist? (Alive + qualified to succeed at the time succession opens.
A testator has no compulsory heirs, but he gave away There is no exception here.)
too many legacies and devises, by sheer Art 1025 The heir, legatee, or devisee must be living when the
mathematical necessity. Rule 950 is followed. testator dies. There is NO exception, contrary to what this provision
Or maybe the testator already covered for the suggests.
compulsory heirs legitimes through donations inter o Representation is not an exception because the representative
vivos, so the remaining parts are all free portion. must at least be conceived already.
What is the rule on acceptance and repudiation of legacies and o For juridical persons, it must exist juridically when the testator
devises? dies.
o Acceptance may be total or partial 1027 First 5 paragraphs are important because they enumerate
o Except: if the legacy/devise is partly onerous and partly instances where one is incapacitated to succeed in testamentary
gratuitous, the recipient cannot accept the gratuitous part and succession. It does not apply to other kinds of succession.
renounce the onerous part o 1. Priest who heard confession of testator during last illness or
Other combinations are allowed minister of gospel extending spiritual aid in this period.
In case of repudiation or incapacity of the legatee/devisee, what Requisites:
are the applicable rules (in order)? A. Will executed during last illness
o 1. Substitution B. Spiritual ministration extended during last illness

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C. Will executed during or after the spiritual Predecease, incapacity, renouncement
ministration o How do you make it?
o 2. Relatives of priest/minister within 4th degree or his institution Enumerate all the three causes
o 3. Guardian, from ward before final accounts of guardianship o Can you restrict vulgar to 1 or 2 grounds?
approved Yes. Just specify.
Except if guardian is A/D/sibling/spouse What are the requisites for fideicomissary?
o 4. Attesting witness to the execution of a will, spouse, parents, o 1. First heir takes the inheritance
children, or anyone claiming under that witness, spouse, o 2. Second heir takes the thing after tenure of the first heir
parent, or children o 3. The second heir must be one degree from the first heir
Put in the exception, where there are three other What does first degree mean?
competent witnesses to the will, under here too It refers to relationship.
o 5. Physician or health officer who took care of the testator o 4. The first heir must have absolute obligation to preserve and
during last illness transmit
1028 only applies to testamentary succession: extend to prohibited o 5. Both heirs are alive and capacitated at the death of the
donations in 739 testator
What if the disposition is for prayers and pious works for the What is the tenure of the first heir?
benefit of his soul and no specifications are given? o What is specified by the testator
o to the church/denomination of testator o If not specified, it is the lifetime of the testator
o to the State Does the first heir have a right to alienate?
1032 disqualifications (unworthiness) these are general; these bar the o NO. This rule is unlike the reserva troncal.
DQ heir from compulsory, testamentary, or intestate succession
Conditions, terms, modes
Substitutions (857-870)
These all burdens in succession, especially since the testator has free
For what kind of succession does this apply? disposal of his property.
o Only testamentary succession. You cannot have substitution What are the types of conditions?
in compulsory and intestate succession. o Suspensive
What are the two kinds of substitutions? o Resolutory
o 1. Vulgar What are the special rules on suspensive conditions?
o 2. Fideicomissary o An impossible condition (873) considered not imposed. The
o The code seems to enumerate two more: disposition is valid and becomes pure.
1. Reciprocal o What about condition not to contract first marriage?
2. Compendious ALWAYS considered not written
(Several heirs one substitute) o What about subsequent marriages?
but these actually are just variations. They go into Generally void, unless imposed by the deceased
mode. spouse or the latters ascendants/descendants
What is substitution vulgar?
o Instituting an heir in default of the one instituted
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o BUT what is allowed is to impose a usufruct or some personal o After the testators death, you give it to the instituted heirs, and
prestation as long as one remains unmarried or a widow is when the term arrives, they turn it over to the legal heirs.
valid. A condition suspends, but not obligates. A term obligates, but does not
o A disposition on condition that the heir/legatee/devisee suspend. A term does not delay the efficacy of the disposition, but it
must also in turn make a disposition in favor of the places an obligation upon the instituted heir (even suspensive, since the
testator or another person? instituted heirs have an obligation to turn the property over to the
The entire disposition is void. Take note of this. The instituted heir when the term arrives).
purpose is to prevent the whole system from being What is a mode?
corrupt. o You have to do something alongside the disposition.
This is also called the disposition captatoria What if the heir fails or refuses to perform the act required?
When does a suspensive condition take effect? o The beneficiary can ask for the performance of the obligation.
o If both conditions exist: 1) the heir is alive when the testator o The legal heirs can ask for the forfeiture of the disposition.
dies, 2) the heir is alive when the condition happens How must a mode be stated?
What happens while waiting for the suspensive condition to o It must be a clear command, not just a request.
happen? When is a caucion muciana needed?
o Place the property under administration of o 1. In a potestative suspensive condition (879)
executor/administrator It is under the sole control of the heir (ex. I give X my
What is the difference between a term and condition? house and lot, as long as he doesnt use it as a drug
o A term is certain, a condition is not. den. In order to guarantee that the legal heirs, who
What are the two types of terms? will then be entitled to the property upon violation of
o Suspensive term the condition, then X has to put up a bond the
o Resolutory term caucion muciana).
When does an institution based on a term vest? o 2. Resolutory term, before the term arrives
o A disposition with a term vests upon the death of the testator, The legal heirs have the right to enjoin disposition of
unlike a conditional disposition (esp. suspensive) which only the property, but they have to put up a caucion
vests upon the happening of the condition. Since a term is muciana
certain to happen, it follows the general rule in 777 that it vests o 3. In case of a mode (882)
upon death. As security for compliance with the testators wishes
So must the heir be alive when the term arrives?
No. Just when the testator dies. Accretion (1015-23)
So he can transfer his vested right upon his
To which kinds of succession does it apply?
own successors.
o Applies only to testamentary and intestate succession.
What do you do as you wait for a suspensive term to arrive?
Requisites?
o Governed by 885. While you wait for the term to arrive, you
give it to the legal heirs (intestate heirs). o 1. Two or more heirs, legatees, devisees, called to the same
inheritance or portion thereof pro indiviso
For resolutory terms?
What does pro indiviso here mean?

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Some commentators say they must have o 2. Subsequent will/codicil
equal shares (like Tolentino), but this is 1. The will must comply with the requirements of wills
wrong. Theres no requirement of equality, 2. Testamentary capacity
just as long as they have aliquot shares. 3. Either an express revocatory clause or
This means even the shares can be unequal. incompatibility in the dispositions
There is no accretion is the shares are 4. The will must be admitted to probate
earmarked. o 3. Physical destruction
o 2. One or more must predecease the testator, become Either by the testator personally or in the case of
incapacitated, or renounce the inheritance. attested wills, it can be done by his agent acting
X gives his BPI account to A, Citibank account to B, PNB to C. C under his express direction and in his presence
predeceases. Is there accretion? Molo: There must be both a) corpus (actual
o No. The shares are earmarked. destruction), and b) animus (intent)
X gives of his estate to A, 1/3 to B, 1/6 to C. C predeceases. Is What if a will is revoked based on a false cause?
there accretion? o The revocation is null and void.
o Yes, because they got aliquot shares. A and B receive Cs o What are the requisites for this situation to apply?
shares according to the proportion they received their shares. 1. Cause must be concrete, factual, and not purely
In testamentary disposition, what wins out, accretion or subjective
substitution? 2. It must be false
o Substitution 3. The testator must not know of its falsity
In intestate disposition, what wins out, accretion or 4. It must appear in the will that the testator is
representation? revoking because of the cause which is false
o Representation, when proper What if the revocation was unauthorized?
o So if the intestate decedent has three brothers (X, Y, and Z) o If it is an attested will, it can be proved, if there are people
and X has X1 and X2, if X dies, representation applies. If X available who can attest to the contents of the will
has no children and X dies, accretion applies. o If it is a holographic will, too bad if no copies survive. Theres
no way of probating it.
Revocation of wills (828-834)
Republication and revival
There is no such thing as an irrevocable will. It only becomes
irrevocable when the testator dies. 835 and 836 are inconsistent with each other.
What are the three ways of revoking a will, whether total or partial? Republication/revival is giving efficacy to a will which somehow lost its
o 1. By operation of law efficacy
Legal separation (offending party is instituted as a o Ex. it has been revoked, and now you want to revive it.
beneficiary in a will) If it is defective as to form?
Preterition o You have to reproduce it in the form of a valid will or codicil.
Where the testator disposes property that is given as o You cannot revive it by reference.
legacy or devise in a will (the legacy/devise is What if it is inoperative by some other reason other than form?
revoked) o You can merely revive it by reference.
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Executors and administrators (1058-1060) Except there is a photocopy that survives (Rodella v.
Aranza)
What if the decedent dies with a will? With no will? o 2. If the holographic will is contested as probate, three
o It has to be probated, and if the will has appointed someone to witnesses who can identify the will and attest to its validity
take care of the estate, then he becomes the executor. must be presented.
o If there is none appointed or no will, then the court appoints an Is this mandatory?
administrator. The leading case of Azaola says that it is
only directory
Probate Godoy: Says that it is mandatory, although it
is criticized
Two aspects of validity of a will?
When is it deemed contested?
o Formal (Extrinsic validity)
If it is challenged as a forgery. If it is
including capacity of witnesses
admitted as genuine but admitted on other
o Substantive (intrinsic validity)
grounds such as mistake, fraud, or duress, it
Ex. impairment of legitimes, preterition, capacity of
is not a contest under 811 and you do not
heirs, legality or possibility of conditions
need three witnesses.
What is probate?
o Mandatory proceeding to determine only the formal validity of Conflicts rules
the will
o There is no substitute for probate. Substantive validity?
o Guevarra v. Guevarra, Seangio v. Reyes, Heirs of Lasam: o Time law as of time of death
All lay down the rule that probate is mandatory. o Place law of citizenship of decedent
Probate is determinative or conclusive of the validity and due execution Formal validity?
of the will. o There are always five choices:
How does it become final? o 1. Law of citizenship
o Just like any decision of court. o 2. Philippine law
o Once it becomes final, it becomes res judicata it becomes o 3. Law of residence
unassailable as to matters of form of the will. o 4. Law of place of execution
o Even if the decision is wrong. o 5. Law of domicile
What cannot be assailed after finality of probate decree?
o 1. Testamentary capacity INTESTATE SUCCESSION
o 2. That he acted freely
o 3. Followed all the requirements of the will, as to witnesses, In general
etc.
o 4. It is genuine and not forged What is intestate succession?
For probate of holographic wills, what must one remember? o Takes place by operation of law in default of a valid will
o 1. You have to present the will itself (Gan v. Yap) Look at the instances in 960 where total or partial intestacy occur:
o 1. No will, void will, or ineffectual will

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o 2. Does not dispose of all property (partial intestacy) o Is there representation if the collateral line?
o 3. Suspensive condition did not occur, predecease, repudiation Nephews and nieces exclude predeceased or
And there is no substitution (testate) unworthy brothers/sisters of decedent
And there is no accretion (testate/intestate) What is the nature of the spouse?
o 4. Heir is incapacitated/unworthy o Concurs with both direct and collateral (up to third degree)
o 5. Resolutory condition happens What is the rule of proximity of degree?
o 6. Resolutory term expires o Nearer exclude the more remote
o 7. Preterition o What is the exception?
What are the principles of intestacy? Representation (see above direct descending and
o Exclusion and concurrence, just like compulsory succession nephews/nieces only for collateral)
What is the rule of relationship? What is rule of equality of relatives of the same degree?
o The intestate heir must be related to the decedent o Relatives of equal degree inherit equally
o Jus familiae (ascendant/descendant) o Exceptions?
o Jus sanguinis (collaterals up to fifth degree) 1. Preference of lines
o Jus xxx (husband and wife) ex. legitimate direct descendant of 1 degree
o Jus imperii (decedent and State) excludes legitimate direct ascendant of 1
Jus familiae and sanguinis requires blood relationship. What is degree
the exception? 2. In collateral relationships, full blood and half-blood
o Legally adopted children and legally adoptive parent distinction
What are the limits? Siblings
o Going down, there is no limit Nephews and nieces
o Going up, there is no limit 3. Representation
o Collateral line, the limit is up to the fifth degree See the combinations in the book.
How do you count degrees? Can the adopted succeed to his biological parents?
o For direct line, count degrees o This is the same problem as in compulsory succession so see
o For collaterals, count up to the nearest ancestor the discussion above.
2nd brothers, sisters o But for the purposes of the Bar, the answer is yes, because the
3rd nephews, nieces, uncles, aunts provision in the FC pertaining to succession by adoptee from
And so on biological parents is within the coverage.
Rule of preference of lines? Combinations 2 and 4 in the book are dangerous, so take note that
o Direct excludes collaterals here (children and illegitimate children) each legitimate child gets
o As a general rule, descending excludes ascending double what the illegitimate children will get. What is the usual
Except: legitimate ascendants not excluded by pitfall?
illegitimate descendants o If you observe the 2:1 ratio intestacy, remember that you still
o Is there representation in the direct line? have the legitimes. You might end up impairing the legitime of
Yes, only in the descending the legitimate children, which cannot be impaired. The
o Collateral nearer excludes more remote

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illegitimate children can suffer impairment if there are a lot of Legitimes to LC, to SS
them, but never the legitimate children. Thus, to LC, to SS (entire free portion went to
o This problem doesnt apply in any other instance apart from the SS)
these two cases. o Partial intestacy: Ex. I gave 1/8 of my estate to Ateneo.
What is the successional bar? Note that the legitimes are to LC, to SS.
o Art. 992. An illegitimate child has no right to inherit ab intestato to legitimate children, 1/8 to Ateneo, 3/8 to spouse
from the legitimate children and relatives of his father or Note: the entire remaining free portion of 1/8 went to
mother; nor shall such children or relatives inherit in the same the SS.
manner from the illegitimate child.
o Compare: Acceptance and repudiation of the inheritance (1041-57)
In representation, an IC cannot represent his
legitimate parent, IC can represent IP, and LC can Acceptance and repudiation are always free acts. A person may always
represent either LP or IP. accept or reject, whether compulsory, testatamentary, intestate.
Here, in inheritance, an IC cannot inherit per se from Exception: accion pauliana
the legitimate relatives of his parents and vice versa. o If there are creditors and the decedent does not have enough
Situations to take note of: property to pay the creditors, the creditors can compel the heir
o In case of the concurrence of the SS and 1 LC, the SS will get to accept to the extent of the credit
, and the LC gets . What is the difference in form?
o SS, brothers, sisters, nephews, nieces SS gets , brothers o Laxer rules in acceptance, and stricter rules in renunciation,
sisters nephews nieces get . because it is prejudicial
According to the rules of division. There is need for judicial approval for renunciation of
o Nephews and nieces concurring with aunts/uncles of the incapacitated person. For acceptance, no need.
decedent nephews and nieces exclude the aunts/uncles o Acceptance there can be express acceptance in writing, oral,
even if they are in the same degree. or there can be tacit acceptance (by doing nothing).
What is the difference in rules for brothers/sisters in testate and o Renunciation you have to do it in writing or by judicial
intestate succession? approval.
o TESTACY: Difference in the rule of brothers and sisters if What is the retroactivity rule?
they are instituted indiscriminately, they receive equal shares o Acceptance as if the property passed at the moment of death
whether full or half blood. (Art 777)
o INTESTACY: Take note of the 2:1 ratio [for full and half blood] o Renunciation as if the renouncer never owned or possessed
and the successional bar. the property (the substitute, co-heir, or intestate heir receives it
Is partial intestacy possible? at the moment of death)
o Yes, there is a will but it doesnt dispose of the entire free o Conditional institutions retroactivity still applies even if the
portion. condition happens later
Give an example of the difference between total and partial What is the rule for public official establishments?
intestacy. o Can neither accept nor repudiate an inheritance without the
o Full intestacy: approval of the government
When is there deemed acceptance?
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o 1. Heir disposes onerously or gratuitously his right to one or o 2. Imputation donations inter vivos by decedent are charged
more co-heirs or stranger either to the donees legitime or against the disposable portion
o 2. Heir renounces it gratuitously to one or more co-heirs o 3. Return donations inter vivos is found to be inofficious and
o 3. Heir renounces it onerously to all co-heirs indiscriminately the inofficious value is actually returned to the estate to satisfy
What about a gratuitous disposition to all co-heirs legitimes
indiscriminately? N.B. if property is to be returned, following Art. 777,
This is a true renunciation and thus there is the fruits will pertain to the proper person (ex. entirely
no acceptance inofficious donation fruits go to compulsory heir;
What about a gratuitous disposition to all co-heirs partially inofficious donation some to compulsory
but in different portions? heir and some to donee)
Still a conveyance and is thus tacit For return, what expenses must be reimbursed by
acceptance the final recipient?
What if an heir dies without have accepted or repudiated the Necessary expenses full extent
inheritance? Useful expenses full extent as long as
o The right passes on to his heirs improvement still exists
What if a renouncing person is both a testamentary and interstate You have to collate:
heir? o 1. Inventory
o A. If he renounces the testamentary disposition he impliedly What results are his gross assets
renounces the intestate share too o 2. Deduct debts
o B. If he renounces as intestate heir without knowledge of being This is where the Santibanez and Hemady doctrines
a testamentary heir, he can still accept the disposition come in. The estate, after all pays money debts, prior
o N.B. this doesnt affect compulsory succession to the heirs receiving their shares.
What is the nature of acceptance/renunciation? What results: available assets
o Final, except: o 3. Add the value of donations inter vivos
1. Vitiated consent Net hereditary estate results.
2. Appearance of an unknown will What are not included?
Support, education, medical attendance,
Collation and partition customary gifts, etc. (since these are
impractical to calculate)
What is the effect upon death of the decedent? What about expenses for professional,
o The immediate effect of death is the vesting of successional vocational, or other career expenses of
rights. But at this point, nobody knows what part of the estate the child, as given by the parents?
goes to whom. o Charged against the free portion,
o The heirs co-own the mass of properties. unless:
What are the three ways by which collation is understood? 1. Provided otherwise
o 1. Computation simple accounting process where value of 2. Inofficious
donation inter vivos is added to the available assets

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o If imputable (the two above), deduct If he died with a will and the free portion cannot accommodate all
what the parents would have spent the dispositions?
on the child had he stayed home o Reduce testamentary dispositions
and loafed o First to be reduced are the non preferred testamentary
What is the measure of the value of the property dispositions
donated? After reducing them to zero, what if the legitimes are still
Value when the donation was made, since impaired?
this was when it was perfected. Any o Reduce the donations to strangers or donations to compulsory
subsequent increase inures to the benefit of heirs considered strangers
the donee. o How do you reduce?
What if the recipients of the donations are the NOT pro rata but in reverse order. The latest
compulsory heirs? donation gets reduced first.
You impute against their legitimes what they o N.B. contrast this with legacies and devises, which are
have received as donations inter vivos. reduced pro rata (non-preferred, then preferred)
Exceptions? Afterwards, the heirs can agree on a partition or go to settlement
o 1. Donor provides otherwise proceedings. Partition here is the physical division of the estate.
o 2. The donee renounces the How is partition done?
inheritance, because he gives up o 1. Extrajudicial agreement by the heirs or
the status as compulsory heir o 2. Judicial order in settlement proceedings
What if the donation to the compulsory What are the kinds of partition?
heir exceeds his legitime? o 1. Actual physical division of the thing
o The excess is taken out of the free o 2. Constructive any act other than physical division that
portion terminates the co-ownership (e.g. sale to third person)
What if the recipients of the donations are What are the characteristics of partition made by the decedent
strangers? himself?
You impute it against the free portion. o 1. It only takes effect upon death
What if the free portion can accommodate all o 2. It is revocable as long as he is still alive
those donations? o How can the decedent/causante make partition?
You take it all out from there 1. Will
What is the special rule for grandchildren 2. Act inter vivos
inheriting by representation, concurrently with Must be in writing and in public document
their uncles/aunts and other grandchildren? It must be accompanied by a prior will
Compute both: a) what their parents would because disposal of property mortis causa
have been obliged to collate and b) whatever can only be done through a will
they themselves are obliged to collate. N.B. unless the partition through act inter
Does collation mean you have to physically obtain the assets? vivos conforms strictly to intestate
o No. Collating means a purely mathematical computation.

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succession portions, so it does not make a Period: within 10 years from date of right to action
disposition What is the liability for co-warranty?
o What is partition to keep an enterprise intact? Proportional liability of co-heirs
A parent can keep an enterprise intact by covering for If one of the obligors is insolvent, his portion
his compulsory heirs legitimes through cash or other are borne proportionally by all, including the
property one entitled to the warranty
Who can the decedent designate as a mandatary? o 3. Co-heirs warrant solvency of debtor of the estate whose
o One who is not a co-heir can be chosen. He is designated to credit is assigned to a co-heir
make the partition after death. But they only warrant against insolvency during
What is the nature of the right to demand partition? partition and not subsequent insolvency
o Generally, it is a mater of right, so any co-heir may demand Period: 5 years from partition
partition at any time. o When is there no mutual warranty?
o Exception: 1. Partition by the testator himself, except when the
A. Partition forbidden by testator for period not legitime has been impaired
exceeding 20 years 2. Agreement among co-heirs to suppress the
Exceptions to this exception: warranty
o 1. Any of the causes for dissolution 3. Supervening events causing loss or diminution in
of partnership value
o 2. Court finds compelling reasons 4. Fault of the co-heir
for partition 5. Waiver
B. Co-heirs agree on indivision for period not What are the causes to annul or rescind a partition?
exceeding 10 years, renewable for like periods o Same as causes for voidable and rescissible contracts
o What about heirs upon whom some suspensive condition o N.B. the special provision on lesion in partition, however,
has been imposed? provides that it must be at least rather than the usual more
Cannot demand partition since he has no rights yet. than value.
But the other co-heirs can demand partition but must o When is the partition not subject to rescission due to
issue a security to protect the inchoate right of the lesion?
conditional heir. When it was the testator who made the partition
What if an heir sells his undivided share prior to partition to a himself, except:
stranger? 1. Impairment of the legitime (even if the
o The other heirs may exercise right to redemption within one lesion was less than )
month from written notice of the sale and prior to partition. 2. Mistake by the testator or vitiation of his
o N.B. some decisions say written notice is mandatory, while intent
some say that it can be replaced by actual knowledge. o What are the options of the co-heir who is sued for
Effects of partition: rescission?
o 1. Absolute ownership over share 1. Have a re-partition
o 2. Each co-heir warrants the share of the others 2. Indemnify the co-heir the amount of lesion suffered

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OBLIGATIONS o Ex. employer can be responsible for employees wages if not
paid
5. Unity in modern legislation
Trends in Obligations and Contracts: o This is especially important in global commerce
o Ex. Bills of Lading, Trust Receipts, Intellectual Property, etc.
1. Obligations have been progressively spiritualized
o There is very little requirement as to form. Upon meeting of Essential requisites of obligations
the minds, in general, there is a K.
2. The principle of autonomy of will, which is still the general rule in K What are the requisites of obligations?
law, has been restricted. o Four generally accepted requisites:
o There are prohibited obligations from being entered into o 1. Active subject
o Art. 1306 Contracting parties may establish clauses and A.K.A. Creditor (to give) or obligee (to do)
terms as they may deem convenient Has right to demand that the obligation be performed
Provided they are not contrary to law, morals, public o 2. Passive subject
order, good customs, or public policy A.K.A. Debtor or obligor
There are five categories of restrictions. They restrict Has to perform the obligation (reciprocal obligations)
freedom but promote the greater good. Note: In a sale of a thing, both parties are
Ex. labor contract with consideration less than the debtors and creditors of each other, with
minimum wage. correlative obligations (as to the thing; and
Ex. Those that violate environmental considerations, as to the money)
social justice, gender issues, etc. o 3. Object
3. Mitigation of the principle that the debtor must answer with all his o 4. Vinculum juris
property For both the active and passive subject, what is required?
o Before: you enter into a K and the creditor can pursue all your o They must be determined or determinable.
properties to exact fulfillment of the obligation What are the types of determined/determinable subjects?
o Now: In the interest of social justice, there are many things that o 1. Obligations where subjects are completely and absolutely
the creditor cannot levy upon, although the principle is still determined at the birth of the obligation
good the creditor csan pursue the property of the debtor to Most common type
exact fulfillment of the obligation o 2. One of the parties is determined, but one is determinable
o In the Rules of Court, there is a list of properties exempt from with a previously-established criterion
attachment, for instance: Ex. Negotiable instrument: I promise to pay X or
1. The Family Home order the amount of P5000, on November 15, 2011.
2. What you receive from support One of the parties (i.e., me) is determined. The other
Etc. is determinable, because X can negotiate it. The
4. Weakening of the principle that liability results from responsibility instrument lays down the criterion.
o In general, under the law, you are only liable if you are o 3. Subject/s is/are determined in accordance with their relation
responsible. Ex. if you are guilty of driving recklessly. to a thing. (Real contracts)

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The subject/s may change at the thing passes from o 1. Vinculum juris, the efficient cause of the obligation
one person to another. o 2. The object (prestation/conduct to be observed)
Ex. X borrowed 3M from Y, and placed his house and o 3. Subject persons, the active and passive subject
lot as security. There is a K of loan and a K of Combined #s 1 and 2 into one.
mortgage, which is registered. X sold his house and What is the fifth element, according to Castan?
lot to Z, who registered the property in her name. The o The causa. It is the why of the contract.
mortgage in favor of Y is still annotated. X doesnt o Ex. Why is Y bound to deliver the car to X? Because X will
pay by the due date. Y sought to foreclose the deliver P400000 to Y. Why is X bound to give P400000 to X?
mortgage, and Z cannot deny the mortgage, because Because Y will deliver the car to X.
Z is the mortgagor now. o What is the causa for a gratuitous contract?
What is the object of the obligation? Liberality.
o Its the prestation. It consists of conduct or an activity to be o What is the causa for a quasi-delict?
performed by the debtor or obligor. Causing an injury to the other.
o Its not the physical thing to be delivered in an obligation to What is the sixth requisite?
give. That is merely the object of the prestation. o The form. But it does not refer to a specific form, like putting it
o Ex. Y has to deliver a car to X on Feb 15, 2011. The object of in writing. It refers to the outward or external manifestation of
the obligation of sale is the act of delivering to X the ownership the obligation.
the car (tradition). The car is the object of the prestation.
o This distinction is, not, however always observed even by the Sources of obligations
NCC.
o What are the requisites for the prestation? Art 1157 Obligations arise from:
1. Licit o 1. Law
Cannot enter into contract of sale for shabu, o 2. Contracts
because the object of the prestation is illicit. o 3. Quasi-contracts
2. Possible o 4. Crimes
Cannot deliver Mount Apo o 5. Quasi-delicts
3. Determinate or determinable Arts. 1158-62 regulate these five sources
Cannot enter into a K with no defined Is this list exclusive?
prestation o Sagrada Orden v. NACOCO: The Japanese during the war
4. With pecuniary value seized the Sagrada Ordens property during the war. Upon
What is the vinculum juris? liberation, the US seized enemy property, which included
o The compulsive element; the obligatory element in an Sagradas property. The US entered into a custodianship
obligation. It makes an obligation an obligation. agreement with NACOCO. Sagrada Orden wanted to collect
o This is why an obligation dependent solely on ones will is void. rentals from NACOCO. Issue: is there an obligation to pay
o Ex. X tells Y, I will sell my car to you when I feel like it. Here, rentals to Sagrada? HELD: No obligation to pay rentals. The
there is no obligatory force. court, to arrive at this answer, the court looked at the five
Yu v. Asuncion: Enumerated requisites of an obligation. sources of obligations there was no contract, quasi-delict, no
provision of law that requires payment of rental, crime, or
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quasi-contract. The implication the court forwarded is that this o Quasi-delict only arises when there is a violation. The breach
is a closed list. itself gives rise to the obligation.
But is it, really? Or should it, really? o In contractual obligations, the obligation precedes breach and
o Many commentators believe it is not exclusive. is not dependent on one in order to exist.
What are the other obligations? Are quasi-delicts and contracts mutually exclusive?
o Public offer is a sixth source of obligation, for instance o No.
(auslobung in the German code or the unaccepted offer). A o They can co-exist separately.
person who by public notice advertises an award in exchange Ex. a bus and car collided, and a bus passenger
for a particular result is bound to grant this award. suffered injuries. The cars driver was a minor and
Ex. Proctor and Gamble announces on TV: For 30 incompetent driver. The passenger sued them all.
wrappers of Tide, you get a glass imported from The liability of the owner of the bus and bus driver
Switzerland. Offer good until Feb 28, 2011 only! X rests on contract. The fathers responsibility for his
saw this advertisement, and on Feb 27, 2011, childs act is based on quasi-delict.
presents 30 wrappers to the P&G office. Issue: is o They can also overlap.
there an obligation here? Held: yes. There is a public Ex. A bus driver drives recklessly and the bus hits a
offer here. tree. A passenger is injured and sues. The bus
Ex. X left his important papers inside a cab. X driver is liable based on quasi-delict or crime (criminal
advertised that whoever returns his papers will get a negligence). The bus company is liable based on
P20000 reward. There is a public offer here. contract of carriage or quasi-delict (negligence is
Some commentators say there are only two sources: law and contract. selection and supervision of driver).
Some say: laws and acts of persons (whether voluntary or involuntary). You are driving a car. Your car gets into an accident with a bus.
What is the nature of a contract as a source of obligation? Who do you sue? What are your options?
o What the contracting parties establish has the force of law o 1. Bus driver
between them, and must be complied with in GF. They are o 2. Bus company
free to enter into any contract, provided the stipulations do not o 3. Sue both because theyre joint tortfeasors, and thus
violate Art. 1306. In general, there is no specific form needed. solidarily liable
o How must compliance be done? Do you have to prove negligence when you sue under quasi-
1. It must be complied with according to its terms (ius delict?
civile pacta sunt servanda) o Yes, you have to prove negligence of the bus driver. It is not
2. And according to good faith (ius gentium bona presumed.
fide). Do you also have to prove the negligence of the bus company?
What is the general rule for obligations arising from delicts o Yes, in the selection and supervision of the bus driver. (Culpa
(crimes)? in eligiendo, culpa in vigilando)
o If you commit a crime, you are liable both criminally and civilly, o This is a rebuttable/disputable presumption.
except if there is no private offended party. As opposed to conclusive and quasi-conclusive
Distinguish a quasi-delict from a contractual obligation: presumptions

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In a situation where damage or injury is caused to a party, and o Accessory obligations:
there is a contract between him and the person who caused the 1. After constitution of obligation and before delivery:
damage, there is no question he can sue under contract. But can take care of the thing with diligence of GFF
he also sue under quasi-delict? Except when law or stipulation requires
o There is an old line of SC decisions in this country which says another standard
that you cannot sue under quasi-delict if there is a contract. If the thing is damaged, debtor is liable for
There is some basis for this, because Art. 2176 says that the damages
act or omission must occur when there is no pre-existing 2. Account and deliver to creditor the fruits of the thing
contractual relation between the parties. from the time of obligation to deliver
o There is, however, the theory of concentric circles (the smaller What is the nature of the right of the
circle of contract is always within the bigger circle of quasi- creditor?
delict). So if you sue under quasi-delict, you are disregarding o Before delivery, merely personal
the contract between the parties. This is valid. o Upon delivery, real
o You can sue under quasi-delict if it is the tort breaches the o A sold B a mango orchard to be
contract. If an act that constitutes breach of contract would in delivered Jan 1. A did not deliver
itself constitute the source of a quasi-delictual liability had there on Jan 1, and instead sold fruits
been no contract, then there is breach of contract through tort. to C, a buyer in GF. B sued for
o So you can choose to sue under quasi-delict or contract. specific performance and won.
Theory of vicarious liability: Can B recover the fruits?
o If you sue under quasi-delict and you choose to sue the As against A, yes.
company and not the employee, you are really suing under Art. But as against C, no
2180. because Bs right is merely
o This is actually a wrong term because vicarious means you are personal, not real. He can
answering for the liability of someone else. sue A for the fruits value.
o But the theory under 2180 is that the company/employer itself 3. To deliver accessories
is negligent as well. What are the creditors remedies for an obligation to give a
determinate thing?
Nature and effect of obligations o 1. Specific performance
o 2. Equivalent performance damages
What are the kinds of prestations?
Either exclusively or in addition to specific
o 1. To give performance
To give a determinate thing
Rules on improvement, deterioration, and loss
To give a generic thing
o When do these rules apply requisites?
o 2. To do
1. Obligation has suspensive condition (1189),
o 3. To not do
resolutory condition (1190), or a term (1194)
What is the primary obligation in giving a determinate thing? The
2. Obligor is obligated to deliver a determinate thing
accessory obligations?
o Primary obligations give what must be given
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3. There is improvement, loss, or deterioration before 1. Substitute performance
the fulfillment of the condition or arrival of the period 2. Equivalent performance
4. The condition is fulfilled or period arrives What are the creditors remedies if the obligation is not to do?
o What are the rules on loss? o 1. Substitute performance
Without fault of debtor: o 2. Equivalent performance
Extinguish obligation Exclusive or in addition
With fault of debtor:
Pay damages SPECIFIC EQUIVALENT SUBSTITUTE
o What are the rules on deterioration? PERFORMANCE PERFORMANCE PERFORMANCE
To give
Without fault of debtor:
Determinate Yes Yes No
Creditor must accept the thing (bear loss) thing
With fault of debtor, either: Determinable Yes Yes Yes
1. Resolution and damages thing
2. Fulfill obligation and damages To do
o What are the rules on improvement? Very personal No Yes No
Improved by time or nature: Not very No Yes Yes
personal
Creditor benefits
Not to do No Yes Yes
Improved by debtors expense:
Same rights as a usufructuary
o (579) he can remove improvements Irregularity in performance
if no damage is caused to the
property What are the types of irregularity of performance?
o (580) he may set-off the o I. Culpable (1170)
improvements he made against any 1. Malice (fraud)
damage to the same 2. Negligence
What are the creditors remedies if the obligation is to give a 3. Delay
generic thing? o II. Non-culpable
o 1. Specific performance Fortuitous event/force majeure
o 2. Substitute performance MALICE (FRAUD):
Done by someone else at the debtors expense o Responsibility arising from fraud is demandable in all
o 3. Equivalent performance obligations. Any waiver of an action for future fraud is void.
Damages, by itself o What about waiver of malice already committed?
Damages in addition to #1 and #2 This can be waived.
What are the creditors remedies if the obligation is to do? o What is another word for fraud?
o Something only the obligor can do (personal): Malice (This means it is intentional or deliberate
Equivalent performance (damages) evasion of the normal fulfillment of an obligation.)
o Anyone else can do it:

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o Differentiate this from the other kind of fraud mentioned in 3. Damages, either way
Obligations and Contracts (1338). DELAY/DEFAULT (MORA)
Deceit. This refers to vitiation of consent by a party o What are the three kinds of mora?
(through insidious words or machinations without 1. Solvendi
which the other party would not be induced to enter Delay in performance
into the contract). This applies here, in this provision
o Is there a difference in effect? 2. Accipiendi
Yes. Delay of creditor in accepting performance.
Deceit makes the obligation annullable, because it This applies in payment/performance
preceded the obligation. (particularly, consignation).
Malice only succeeds the obligation. The creditor 3. Compensatio morae
may insist on performance (specific or substitute), Reciprocal delay. (Taken alongside mora
resolution, and in either case, damages. solvendi)
o What are the effects of malice? o What is mora solvendi?
1. Creditor may insist on specific/substitute Non-performance with respect to time, whereas
performance, whichever applies malice and negligence are with respect to quality.
2. Resolution [for reciprocal obligations] o What are the requisites?
3. Damages, either way 1. Obligation is liquidated and demandable
NEGLIGENCE: 2. Debtor delays in the performance due to dolo or
o Always refers to the omission of something that should be culpa (thus, w/o justifiable reason)
there required degree of diligence. This differs depending 3. The creditor requires performance, judicially or
on attendant circumstances. extra-judicially (demand)
o What are the kinds of negligence? General rule: demand is required prior to
Simple mora solvendi applying (this requirement is
Gross/wanton if it is so reckless, that it practically called mora solvendi ex persona. If demand
amounts to malice, and is treated as such is not required mora solvendi ex re).
o What is the default standard of diligence required? o N.B. Jurado defines these
The fictional standard of a good father of a family. differently his ex persona is delay
(In common law, they refer to it as diligence of a in obligation to do, and his ex re is
prudent businessman.) delay is obligation to give
o Is waiver of future negligence allowed? When is demand not required?
Accepted view: waiver of future gross negligence is o 1. The obligation/law expressly so
not allowed, because its tantamount to malice declares.
Waiver of future simple negligence is allowed It is not enough that the
o Effects of negligence?
contract states specific
1. Creditor may insist on specific/substitute dates. Mere setting of
performance, whichever applies
2. Resolution [for reciprocal obligations]
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date is not enough. Need 4. Obligor must be free from participation in the
to demand still. aggravation of the injury to the creditor
o 2. Time is of the essence. o If any of the four is not present, there is no fortuitous event
Look at intent of the o If there is a fortuitous event, what is the effect?
parties and attendant As a general rule, the debtor is free from liability
circumstances. What are the exceptions?
o 3. Demand is useless 1. If the parties agree
N.B. under the law on partnership, a promise 2. If the law so declares (ex. in delay)
to make contributions on a particular date, 3. Nature of the obligation requires
and then failing to do so, would make the assumption of risk
person a debtor of the partnership and is o Ex. insurance
liable for interest and damages o Are defective brakes, blown tires, and other similar
o Can you have mora solvendi in negative obligations? problems fortuitous events?
You cannot have mora in negative obligations Our SC is consistent in denying such claim.
o What are the effects of mora solvendi?
Obligations to deliver a determinate thing: place the Other provisions
risk on the debtor
Liable for damages What are the presumptions re: interest and debt?
Basic remedy: performance or resolution o 1. If principal has been received without reservation re: interest
The provision also mentions contravene the tenor of the presume the interest has been paid
obligation. What is this? o 2. If later installment has been received without reservation re:
o Just as all-around term that encapsulates all the culpable prior installments presume the prior installments have been
violations. But actually nothing will get through the three paid
above. o N.B. these are rebuttable presumptions
What is compensatio morae? What are the four types by which creditors can satisfy their
o If both sides are in delay, these cancel out. claims?
o But when one party complies or is ready to comply with his o 1. Levy and execution on debtors non-exempt property
obligation, delay by the other begins o 2. Accion subrogatoria
FORCE MAJEURE Creditor sues on behalf of his debtor, against his
o What are the requisites of casa fortuito? debtors debtor
1. The cause was unforeseen and unexpected and Requisites?
was independent of human will 1. Creditor has credit against the debtor
2. Impossible to foresee, or if foreseen, impossible to 2. Credit is due and demandable
avoid 3. Failure of debtor to collect his own credit
3. Impossible for the debtor to fulfill his obligation in from a third person (through malice or
the normal manner negligence)
4. Insufficiency of assets of debtor to satisfy
creditors credit
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5. Right is not intuit personae o Suspensive, potestative, and is dependent on the sole will of
o 3. Accion pauliana the debtor the obligation is void.
Right of creditors to rescind alienations by their o Ex. I will sell you my car when I feel like it.
debtors to defraud them o Because there is no juridical tie here.
Requisites? What if its a suspensive, potestative condition dependent on the
1. There is credit in favor of plaintiff sole will of the creditor?
2. Debtor performed an act subsequent to o Ex. I will sell you my car when you feel like it.
the contract giving advantage to other o Its VALID. In fact, it becomes pure.
persons Obligation that depends on an impossible or illegal suspensive condition
3. Creditor is prejudiced by the debtors act o What is contemplated by this provision, original or
4. Creditor has no other legal remedy supervening impossibility?
5. Debtors acts are fraudulent ORIGINAL impossibility.
o 4. Accion directa The supervening impossibility does not annul the
Direct action by the creditor against his debtors obligation; it just extinguishes it.
debtor the creditor acts in his own name o A positive obligation to do an impossible thing:
Exception to relativity of contracts Both the condition and obligation are void.
Give examples: o Negative obligation not to do an impossible thing:
1. Lessor against sublessee (skip lessee) Condition is disregarded. The obligation is valid.
2. Laborer against principal (skip Ex. X sells Y his house and lot on condition that Y
independent contractor) does not transfer the house and lot to California.
3. Principal against subagent (skip agent) o Negative condition not to do an illegal thing:
Both the condition and obligation are valid.
4. Vendor-a-retro against transferee of
Ex. X sells Y his house and lot on condition that Y
vendee (skip vendee)
does not turn the house into a shabu den.
Types of obligations Obligations with supensive conditions:
o That X will happen by a certain time
Classes of obligations? Extinguished when time passes
o Pure Or indubitable that it will happen
o Conditional o That X will not happen by a certain time
Happening gives birth/death to the obligation Take effect when time passes
o With a term Or indubitable that it will not happen
Happening makes it demandable What are the requisites of constructive compliance/fulfillment of
What is a potestative condition? conditions?
o Something that depends solely on one of the parties o 1. Intent of the obligor to prevent fulfillment of the obligation
What is casual? o 2. Actual prevention
o Depends solely on chance or a third partys will. o What is the effect?
What condition will make obligation void? The condition is deemed complied with.

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o To which does constructive compliance apply? o Those produced from the constitution of the obligation to the
Only to potestative conditions or mixed conditions happening of the condition: not covered by the rule on
with potestative conditions. retroactivity
Ex. X sells Y a lot, if Y builds a road from the lot to the Resolution in 1191 what is the effect?
highway. The only road Y can build must go through o Mutual restitution. They are returned to status quo ante.
Xs property, but X refuses to allow. 1191
X sells Y a piece of land in year 2000, subject to the condition that o Compare rescission and resolution:
Y pass the Bar examinations. Y passes the Bar in 2005. What is Resolution primary remedy
the effect? Rescission subsidiary
o The condition is deemed to have arisen in year 2000. There must be no other remedy
o But not fruits. It has to be a last recourse
X sold the land to Z in 2001, when the condition had o Compare the basis:
not yet happened. Y sold the land to W in 2002. Ys Resolution non-fulfillment of obligation
sale wins out because the sale of X to Y retroacted to Rescission based on economic prejudice (lesion)
2000. o Resolution can be extrajudicial or judicial. Either is valid, but
o What is the right of the creditor in the mean time? extrajudicial resolution is always subject to court checks and
The creditor can take any action that protects his balance, so its at the risk of the party who resolves.
rights. o Is an express provision allowing extra-judicial resolution
Ex. He can put an adverse annotation on the title. mandatory?
When can the debtor recover due to payment by mistake? No. Parties can resolve even without an express
o 1. Performance by mistake provision allowing so.
o 2. Action for recovery is brought before condition happened or Outline of 1191 (resolution):
its apparent the condition will not happen o 1. Only applies to reciprocal obligations
What are the rules re: deterioration and improvement and loss Elements:
before the happening of the suspensive condition? 1. 2 prestations arising from same source
o 1. Fortuitous loss obligation is extinguished 2. Each prestation designed to be the
o 2. Culpable loss debtor liable for damages counterpart or equivalent of the other
o 3. Fortuitous deterioration borne by creditor Ex. Contract of sale
o 4. Culpable deterioration creditor chooses: o 2. There is a tacit resolutory condition: breach
A) rescission with damages o 3. The party seeking to rescind must be ready to comply with
B) fulfillment with damages the obligation, otherwise he is in BF
o 5. Fortuitous improvement benefit to the creditor o 4. The injured party can elect resolution even without court
o 6. Intentional improvement governed by Art. 579 of the action
usufruct o 5. Effect: mutual restitution
Can take it out if it does not lead to damage What if the other party does not want to return
If it would cause damage, no compensation what you have given him, after resolution?
Rule on fruits:

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Go to the court to recover. The action is not The creditor cannot demand, and the debtor cannot
for resolution, but recovery, because insist on pre-payment
resolution does not need court action. o If it is for the benefit of the debtor:
Obligations with a term/period what is the difference from a I promise to pay you on or before March 2011 this
condition? is for the benefit of the debtor.
o Term is certain, condition is uncertain. They are alike in the This is an example of a term benefit for the debtor
sense that theyre both future. When can the court fix the duration of the period?
o Only demandable when the day arrives. o 1. If it does not fix a period but a term is assumed to have
In case of loss, deterioration, or improvement before the day been intended
certain, what do you follow? o 2. If the period entirely depends upon the will of the debtor
o Follow the same rules as in suspensive conditions. o Two requisites for the application of this article?
Anything paid before the day arrives 1. Parties did not fix the period but from the nature of
o If made consciously, what is the implication? the circumstances, it can be inferred that the period
Nothing can be recovered, because the term was was intended by them
effectively waived. OR there was a period, but it was made
o What if it was made out of mistake? dependent on the will of the debtor
Old code: only fruits and interests can be recovered 2. The court must decide what period the parties
Now: The thing and the fruits and interests can be probably intended. The court cannot decide for itself,
recovered. it must infer the parties intent
Who is entitled to the fruits received from the constitution of the o Action for 1197 can only be for the fixing of the period. It
obligation until the arrival of the term? cannot be for fixing of the period and specific performance at
o One view: fruits belong to the debtor the same time, because the period is presumed not to have
o Other view: fruits belong to the creditor, even if they should not arrived yet.
be delivered til the term arrives o Exception: if a separate action for performance would be only
o RFBs view: The debtor keeps the fruits in the interim. dilatory (i.e. whatever the period was, it already has passed)
What are the instances when the fruits cannot be recovered When can the court fix the period for an obligation?
notwithstanding premature delivery? o 1. 1197, par. 1 (above): Parties did not fix the period but from
o 1. When the obligation is reciprocal and there is pre-payment the nature of the circumstances, it can be inferred they
on both sides (so both things are fruit producing) intended a period
o 2. The obligation is a loan where the debtor is bound to pay Exceptions:
interest A. 1682, 1687 these are leases payable
o 3. When the period is exclusively for the benefit of the creditor monthly or yearly; these terminate at the end
o 4. When the debtor, aware that the period has not yet arrived, of the month/year (the K fixed the period)
pays anyway B. Pacto de retro under 1606 the law fixes
When is a term for the benefit of the debtor? For the creditor? the period of redemption for four years
o Presumption: a term is beneficial for both C. Contracts of service for indefinite period
o What is the consequence of this? (involuntary servitude)

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o 2. 1197, par. 2 (above): Period entirely depends on the will of o Two or more obligations are agreed upon but one, some, or
the debtor not all have to be performed.
o 3. 1191, par. 3 o Who has the choice?
This is resolution instead of decreeing the Depending on whom the parties name as having to
resolution, the court decides to fix a period instead make that choice.
o 4. 1687 If there is no choice, the debtor chooses.
Contracts of lease falling under the 2nd-4th sentences o How must a choice be made?
o 5. 1180 Any form writing, oral, or implied/passive
If the debtor binds himself to pay when his means o Why must a choice be communicated?
allow him to do so If it depends on the creditor, duh, because the debtor
Deemed to be one with a term is not a mind reader.
Supposing the court fixes a period, can the parties agree to extend Ong: But even if it depends on the debtor, it gives the
it further? creditor the chance to consent to or impugn the
o Yes, it is contractual freedom. It is a novation there has to be choice. RFB does not agree with this, because the
an agreement between the parties, however. creditor has no right to impugn because the debtor is
When does the debtor lose right to avail of the period? these acting within his right.
obligations become pure What is the real reason?
o 1. After the obligation have been contracted, he becomes 1. To give the creditor the chance to prepare
insolvent, unless he gives security/guarantee for the debt for acceptance.
This is not limited to judicial insolvency 2. Because once the choice is
o 2. He does not furnish to the creditor the guarantees/securities communicated, it is irrevocable and the
promised obligation ceases to be alternative
o 3. By his own acts, he impaired said guarantees/securities, and Implications when debtor has right of choice?
by fortuitous event, they are lost. UNLESS he replaces them o 1. Limitation of choice
with securities just as good. What if there is one choice left due to the
o 4. He violates undertaking in consideration of which the fortuitous event?
creditor agreed to a period. The debtor has no choice but to perform it
o 5. He attempts to abscond. What if is limitation of choice left due to the
o 6. Article 2109 Creditor is deceived as to the substance or creditors acts?
quality of the thing Right to resolution, with damages.
o 2. Own fault
Classification according to number of prestations. If all of the things are lost due to the debtors
o Conjunctions 2 or more prestations, all of which must be fault?
performed. No special rules apply here. Creditor entitled to damages
o Alternative 1199-1205 If some of the things are lost due to the debtors
o Facultative 1206 fault?
What is an alternative obligation? Can perform what remains

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o 3. All lost o What if through the debtors fault, the principal prestation
If all are lost due to fortuitous event? is lost? Can you compel him to perform the substitute
Obligation is extinguished obligation?
If all but one are lost due to fortuitous event, and No. You cannot compel substitution it always
the last one lost due to debtors fault? belongs to the debtor as a choice. But you can ask
Creditor can demand damages. for damages.
If all but one are lost due to debtors fault, and the o What if the substitute prestation is lost due to the debtors
last one lost due to fortuitous event? fault, and then before the due date, the main prestation is
Obligation is extinguished lost due to fortuitous event?
Implications when creditor has right of choice? You cannot compel performance, unless there is
o 1. Some lost abuse of right. Because even if the substitute
If some lost due to fortuitous event? prestation has not been lost, loss of the main
Perform what remains prostation due to fortuitous event will extinguish the
If some are lost due to debtors fault? obligation anyway.
Creditor can ask for performance of any of
them or value of one of them + damages What is a joint obligation? (or mancomunada or pro rata)
If some are lost due to creditors fault? o The debtors are liable only for a proportionate part of the debt
Creditor can choose from remainder o Or the creditors are entitled only for a proportionate part of the
o 2. All lost debt
If all are lost due to debtors fault? What is a solitary obligation? (or joint and several, in solidum, or
Creditor can choose value of any of them + solidaria)
damages o Debtors can be held liable for the entire part of the debt
If all lost due to fortuitous event? o Or the creditors can demand the entire part of the debt
o What does individually and jointly mean?
Obligation extinguished
If all lost due to creditors fault? Solidary
o Where there are several debtors and the obligation
Obligation extinguished
mentions a singular (I or notice to me) and then
What is a facultative obligation?
signed by several people, what does this mean?
o There is only one obligation agreed upon, but the debtor has
Solidary
the right to substitution.
What is the essential nature of jointness?
o What is the difference from alternative obligation?
o Active joint (many creditors, one debtor) You have as many
If one or some of the obligations are impossible or
obligations as creditors multiplied by debtors
illegal, then there can still be performance of the
o Passive joint (many debtors, one creditor)
others.
o Mixed joint (many debtors, many creditors)
In facultative, if the principal obligation is impossible
What is the essential nature of solidarity?
or illegal, then the obligation is extinguished
o Who has the right to substitution? o Active There is mutual agency, up to a certain point (because
Always the debtor. if there are multiple creditors, and one collects, he must deliver

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what is not his. So its not complete agency because he keeps o Whereas in 1215, the creditor can perform acts like remission,
some for himself) novation, compensation, or confusion and this extinguishes the
o Passive There is mutual guarantee among the multiple debt
debtors, as to the single creditor o Ex. (A B and C) are soldiary creditors, X is the debtor. Can
o Mixed solidary B remit Xs debt?
What is the presumption? 1212 disallows this because Bs remission is
o In favor of joint obligations. prejudicial to A and C.
When is there soldarity? 1215 seems to allow it.
o 1. When the law so states (ex. joint tortfeasors) o How do you reconcile these?
o 2. When parties stipulate The remission was a true remission. The debt is
o 3. When the nature of the obligation demands solidarity extinguished. But B will be liable for A and C for their
What is the effect of demand by any of the solidary creditors? shares.
o The debtor may pay any of the creditors, but if any demand, A remits one of the solidary debtors shares.
judicial or extrajudicial, is made on him, he must pay only the o Can A go against one of the other debtors for the
one demanding payment remaining amount?
o What is the problem here? Yes.
If one of the creditors demands, but fails to follow up o Can A go against the debtor whose share he remitted for
on it, the rest cannot demand anymore. The debtor the remaining amount?
will get off scot-free. Yes, because that debtor can recover from the rest
o What if the debtor paid the wrong creditor (non-demanding anyway.
creditor)? Can the demanding creditor still demand? o One of the other solidary debtors becomes insolvent. Will
He can only recover the amount the whole obligation the debtor whose share was remitted share in covering for
minus the share of the creditor whom he paid. In the insolvent debtors share?
effect, the debtor pays a little less than twice the Yes. The remission only extended to that debtors
amount original shares, and not to that insolvent debtors
o Commentary: if the debtor paid the share of the wrong creditor, shares which has to be covered for now.
this is fine. The demanding creditor can still recover the whole What defenses are available to a solidary co-debtor?
amount minus the share of the creditor whom he had paid. o 1. From nature of obligation
o What if there are multiple creditors (A B C) and debtors (X o 2. Personal to him
Y Z), and A demanded Z. Can B demand X? o 3. Personal to a co-debtor
Yes, and X can pay B. As demand on Z is moot and What is the effect of each of these defenses?
academic. o Nature of the obligation total defense (ex. the obligation is
What is the conflict between 1212 and 1215? void because the prestation is illegal)
o According to 1212, in the case of active solidarity, the solidary o Person to him partial (ex. there is a special term or condition
creditors can do what is beneficial but not prejudicial as to him)
o Person as to a co-debtor partial (ex. when the co-debtor
entered into the obligation, he was insane)

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What is a divisible obligation? When are the cases when both the
o One susceptible of partial performance penalty and actual damages can be
o It does not follow that because the object of the prestation is demanded?
divisible that the obligation is also divisible o 1. Express stipulation
What is the general rule? o 2. Debtor refuses to pay the penalty
o Obligations are indivisible, as a general rule because the law o 3. Debtor is guilty of fraud in the
says so fulfillment of the obligation (fraud as
When are obligations divisible? malice)
o 1. Parties provide so o Pamintuan: There was an obligation with a penalty clause.
o 2. Nature of the obligation necessarily entails performance in It called for liquidated damages or penalty in the form of
parts (Ex. 1225, par. 2 first clause) 100K. There was fraud in the fulfillment of the obligation.
o 3. The law provides otherwise The aggrieved party was able to prove actual damages in
See these in payment or performance under the the amount of 190K. HELD: Since the amount of actual
topic of indivisibility of payment damages is bigger (190K), it absorbs the 100K. So if greater, it
Obligations with a penal clause: absorbs the penalty. BUT this is wrong.
o This is especially common in construction projects o Country Bankers: interpreted the rule correctly. The
o Sometimes there is an incentive too aggrieved party can collect BOTH, without absorption.
o What is the nature of the punishment?
Civil punishment. Usually a penalty or a fine. Extinguishment of obligations
o Purposes?
What are enumerated?
1. To provide for liquidated damages, saving him the
o 1. Payment
trouble of having to prove damages
o 2. Loss
2. To strengthen the coercive force of the obligation
o 3. Condonation/remission
o What is the safeguard?
o 4. Confusion/merger
The courts can reduce it if unconscionable
o 5. Compensation/set-off
o Characteristics?
o 6. Novation
1. Subsidiary
Is this an exclusive enumeration?
Only upon non-performance can the penalty
o Its not.
be demanded, nothing else
What else are there?
Debtor cannot save himself from performing
o 1. Death, for certain obligations (purely personal)
the obligation by paying the clause
o 2. Renunciation by the creditor
Exception: cumulative, when both the
o 3. Compromise
principal obligation and the penalty can be
o 4. Arrival of resolutory term
demanded
o 5. Mutual desistance/dissent
2. Exclusive
Ex. Landlord and lessee agree to cut short the lease
It takes the place of liquidated damages.
o 6. Unilateral withdrawal
Ex. partnership
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o 7. Change of civil status refused. Cathay bumped them off. X sued for
o 8. Rebus sic stantibus damages. HELD: Won, because you can demand the
o 9. [spaced out] very thing to be done or delivered even if the
o 10. Judicial insolvency alternative was superior.
o If its a generic obligation?
PAYMENT Cannot demand what is superior and cannot be given
what is inferior.
Payment or performance: (1232-1251) What is the special rule on money debts?
o This is the normal way of extinguishing an obligation o Made in the currency stipulated
o Distinguish payment from performance. N.B. There was a time when you cannot stipulate
Payment is the proper term for obligations to give currency other than peso, but now you can.
Performance is the proper term for obligations to do o If not possible, whatever is legal tender in the Philippines
o Outline this provision: What about payment in negotiable paper?
I. As to prestation o General rule: payment of money debt must be in legal tender
Identity o Seneris: Managers check same as legal tender
Integrity Corrected in subsequent cases which said that
Indivisibility managers, cashiers, or certified check is not legal
II. As to parties tender and can be rejected by the creditor
Payer o BUT the creditor can accept, and if he does, this payment is
Payee only provisional.
III. As to time/place o X issued a check to Y or order. Y endorsed it to Z. Z lets it go
o Special forms of payment: stale and he goes to the depositary bank and gets refused.
A. Dacion en pago This is the case where due to the creditors fault, there was
B. Imputacion prejudice.
C. Cession Namarco: Impairment has to be by someone else,
D. Consignation because if it was Y who impaired, X can just issue
Requisites of payment? again.
o For the prestation: Rule on inflation or deflation?
1. Identity o It must be extraordinary there must be a declaration from the
2. Integrity Bangko Sentral.
3. Indivisibility What are the exceptions to the requirement of identity?
What does identity mean? o 1. Dacion en pago
o The very thing itself must be done or delivered o 2. Novation
o If its a specific thing? What does integrity mean?
Cannot compel the creditor to receive some other o One must deliver the whole prestation
thing, even if its the same value o Exceptions to integrity?
Cathay Pacific: Business class has been fully 1. Substantial performance in good faith
booked, so X was being upgraded to first class, but X
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2. Waiver by the debtor/obligee If it is done with the debtors consent, then there is
3. Application of payments/imputacion (several debts subrogation. The one who pays becomes the creditor
are equally onerous) and he can go after the debtor.
What does indivisibility mean? Exception: if the third person intended it as
o Performance must be in one act a donation.
o Exceptions to indivisibility? What if it is without the debtors consent?
1. Waiver/agreement between the parties Payment, but only to the extent of the
2. Prestations that necessarily entail partial benefit.
performance Ex. X has a debt to Y for P70K. Y reduced
3. Cases when the law itself provides for divisibility: the debt to P50K. Z did not know about this,
A. Debt is liquidated in part and unliquidated so Z paid Y P70K on Xs behalf. How much
in part (1248) can Z demand from X?
B. Joint divisible obligation (you have as o Only P50K.
many obligations as creditors divided by o [Beyond topic: Z can demand as
debtors) the P20K from Y as solutio indebiti]
C. Solidary obligation where the debtors are Who can you pay?
bound under different terms and conditions 1. Creditor/obligee
D. Compensation, where there is a balance 2. His successor or transferee
left 3. Agent
E. Work is to be delivered partially 4. Third person, as long as:
F. Where there are several guarantors that o It redounded to the creditors
demand division (2065) benefit, and the payment is good
G. Impossibility or difficulty of single only to the extent of the benefit
performance o When is the benefit deemed to be
o This is an equity measure total?
The payor (1236-8) 1. After payment, the third
o Who can the payor be (and the payee cannot refuse)? person acquires the
The debtor/obligor himself creditors rights
Debtors heir or assignee 2. Creditor ratifies
Debtors agent (provided there is proof of agency) payment to the third
Anyone interested in the fulfillment of the obligation person
(ex. guarantor) 3. By creditors conduct,
o Who can the payor be with the payees consent? debtor was led to believe
Anyone. third person had authority
o What is effect of payment by a third person, if accepted? to receive payment
5. Anyone in possession of the credit
o Ex. NIL

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What if the debt has been garnished? o So what is it, really (Castan)?
The payment is no good, provided that the Its a special form of payment.
notice of garnishment has been served on Because it departs from the rule on identity
the payee. This is because the funds are o To what extent is the obligation extinguished?
held in escrow on behalf of another person. To the extent of the value of the thing given
When is time/place of payment? Unless the parties agree on total extinguishment
o Time when it is due generally the parties do
Generally, when there is judicial or extra-judicial o What is the essential requirement?
demand Both parties must consent
Except the three exceptions on mora solvendi ex re o What are the requisites of dacion en pago?
o Place 1. Performance of a prestation in lieu of payment
Primary rule: stipulated place 2. Some difference between the prestation due and
Secondary rule: place where the thing was located that which is given
at the time of constitution of obligation (only if the 3. Agreement between the debtor and creditor that
obligation is to deliver a determinate thing) the debt is extinguished by the performance of the
Tertiary rule: (for instance, if it is a generic thing, or substitute prestation
an obligation to do) debtors domicile 2. Imputacion (application of payment)
1. Dacion en pago (dation in payment) o What is it?
o Filinvest: The delivery and transmission of the ownership of a Designation of debt which is being paid by the debtor
thing by the debtor to the creditor as an accepted equivalent of who has several debts of the same kind to the creditor
the performance of an obligation. who is paid
o Go: A special form of payment by virtue of which the debtor o Give an example.
offers another thing to the creditor who accepts it as the X owes Y four debts: 10k, 20k, 30k, 40k. They are all
equivalent of payment for an outstanding debt. due. X remits 100k to Y. No need to apply the rules
o Note: There is no requirement that it must be to satisfy a on imputacion.
money debt. It can be for some other obligation. X remits 90k to Y. In this case, this is less than what
o What is the legal effect, as stated before? he owes in total. How is the payment applied?
The debtor becomes the seller, the creditor becomes See rules below
the buyer, and the debt becomes the purchase price o What are needed?
Since it is governed by the law of sales, there are 1. Debtor
implications: warranty against eviction, etc. 2. Creditor
This has been criticized precisely because of this. 3. Several debts which are due
o What is the other point of view? 4. Remittance of a payment which is less than the
Dacion en pago is a novation. total
This has also been criticized because in a novation, o How do you apply the amount paid to the several debts?
the original obligation is extinguished and a new one Primary rule apply according to the agreement of
takes its place. Here, there is no new obligation that the parties (1)
takes the place of the old one.
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Next the debtor may apply if there is no agreement, It is legal if the debtor goes to court and applies for
subject to rules on indivisibility of performance (2) public auction and receives an acquittal (under
What if the debtor does not apply? Insolvency Law)
The creditor may apply (3) 4. Consignation
What if neither the debtor nor creditor applies? o N.B. Tender of payment on consignation is not the correct
Apply to the most onerous first. (4) term
Ex. interest-bearing debt > non-interest o What is this?
bearing debt Act of depositing the thing due with the court or
Ex. secure debt > non-secure debt judicial authorities whenever the creditor cannot
Ex. debt with penal clause > without one accept or refuses to accept payment
What if there are equally onerous? It generally presupposes or requires prior tender of
Apply proportionally to all (5) payment
o What makes imputacion a special form of payment? o Requisites?
It departs from the rule on indivisibility and integrity 1. There must be a debt due
3. Payment by cession 2. Consignation was made due to some legal cause
o When does it apply? There was a prior tender which was unjustly
When there is one debtor and many creditors. refused
o What happens? Or there exist circumstances that make a
The debtor turns over all his assets to the creditors, prior tender unnecessary or impossible
allows them to sell the assets, and then the creditors 3. First notice of consignation given to interested
divide the proceeds proportionally parties
o Does cession require creditors acceptance? 4. Actual deposit with court
Yes. 5. Second notice given after consignation
o Does ownership over the thing pass to the creditors? o What is a tender?
No, they just receive authority to sell. Manifestation made by debtor of his desire/willingness
As opposed to dacion en pago, where ownership and ability to make immediate payment
transfers. o When is prior tender dispensed with?
o What is the extent of extinguishment of the debts? 1. Creditor is absent or unknown or does not appear
Only to the extent of the proceeds. in place of payment
Unless there is an agreement that the entire debt is 2. Creditor incapacitated during time of payment
extinguished. 3. When without just cause, he refuses to give a
o Why is it a special form of payment? receipt
Departs from integrity and indivisibility Odd: this still presupposes tender of
o Does this contemplate voluntary or legal cession? payment
Voluntary. It is extra-judicial. 4. When two or more persons claim the same right to
collect
5. Title of the obligation has been lost

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o Why is consignation a special form of payment? promised to sell Y his Innova for P1M. It was then lost. Does Y still
Departs from requisite of parties have the obligation to give the money?)
o What if it is a case of mora accipiendi, where the creditor o One view (Germanic view) the entire obligation is
unjustifiably refuses payment? extinguished
Go to court and consign it there. (The French and Res perit domino the debtor in effect bears the
German Codes just provide that the obligation is burden
extinguished. This is probably better and easier.) N.B. we generally follow this
o Other view (Romanic view) Y still has to pay the money
LOSS/IMPOSSIBILITY (fortuitous event) Res perit creditori the creditor in effect bears the
burden
When is it loss, when is it impossibility? Exceptions:
o Loss, if to give o 1504 sales of goods: res perit domino applies
o Impossibility, if to do o 1655 destruction of the thing leased through fortuitous event
What happens when loss occurs in an obligation to give a If total: extinguish lease
determinate thing (1262)? If partial: lessee chooses between rescission or
o The obligation is extinguished proportional reduction of lease payment
Does it apply to an obligation to give a generic thing? (1263) o 1717 contract for a piece of work, where the contractor
o No. furnishes the material
o Genus nunquam perit- the genus never perishes Contractor bears the loss of the materials if prior to
Except: if the thing is deemed contraband before delivery
delivery, so the genus perished Unless the creditor delayed in receiving the thing to
o Ex. X had an obligation to deliver a sack of rice, and the stocks be delivered
perished. X just has to buy rice. What is another mode of extinguishment hidden in the folds of this
What about a limited generic thing? provision?
o The obligation can be extinguished. o Rebus sic stantibus When the services become so difficult as
o Ex. X entered into an agreement to sell Y one of his cars. If he to be manifestly beyond the contemplation of the parties, the
lost all of them in a fortuitous event, the obligation perishes. obligor is excused
What about obligations to do? (1266) o Contracts which have stipulations on successive performances
o Released from the obligation is the prestation becomes (several prestations) or dependent on the future
impossible. o Must interpreted in accordance with the situation that existed
What do all of these presuppose? when the obligation was entered into
o That when the obligation was entered into, the obligation was o Requisites?
possible. The loss or impossibility simply supervened. 1. The event of change could not have been foreseen
o If the obligation was initially impossible, there is no obligation at the time of the agreement
to begin with. 2. Makes the performance extremely difficult, but not
In a reciprocal obligation, one of the prestations is lost under impossible
fortuitous event. Does it affect the other obligation? (Ex. X What if it makes it impossible?

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o You can invoke impossibility of o What if there is delivery by mistake?
performance The creditor can claim this and rebut the presumption
o You do not need to invoke rebus sic What is the debtors defense in this case?
stantibus He can claim that he actually paid the debt
3. The event was not due to the act of any of the o What is the presumption that gives rise to this
parties presumption above?
4. The K of the obligation was a future prestation If the debtor has the instrument in his possession, it is
o To what kind of obligation does it apply? presumed the creditor delivered it to him
Only to do, but not to give
But in the Philippines, it has evolved into including MERGER/CONFUSION
even obligations to give, see Naga Telephone
Because it just says obligations in general What is this?
o When the debtor and the creditor in the obligation is the same
CONDONATION/REMISSION person
Requisites?
What is this? o 1. Takes place between the creditor and the principal debtor
o Act of liberality wherein without receiving any equivalent, the o 2. The very same obligation is involved
creditor renounces the debt What is the most common cause of merger?
o Extinguishes the debt in whole or in part o Intestate succession, where you inherit your own debt/credit.
Requisites? Ex. X owes his brother Y a sum of money. Y dies intestate and
o 1. Debt existing at the time the remission is made X receives the credit, so there is confusion.
No need for the debt to be due, as long as it exists Y has a debt to X. The debt is guaranteed by Z. X assigns the debt
o 2. The remission or the waiver must be gratuitous to Z. Did remission happen?
o 3. Acceptance by the debtor o No. Z is not the principal debtor, he was just a guarantor.
o 4. Capacity between the parties to enter into a contract of o The guaranty is extinguished, and Z can go after Y.
donation
What is the form? COMPENSATION/SET-OFF
o If it is express remission, it must follow the rules on donations
as to form What is this?
o If it is an implied remission, and thus not governed by any o Concurrent amount of two persons who in their own right are
form. (Here, the creditor just does not collect) reciprocal debtors and creditors of each other
In case there is a debt evidenced by a private document and then How similar is this to merger?
later on, it is voluntarily surrendered by the creditor to the debtor, o There are at least two debts in both, but in merger, it is
what is the implication? concentrated in one person. In compensation, in two persons.
o The creditor is impliedly remitting the obligation What are the kinds of compensation?
Because he will lose his proof to collect o 1. Legal compensation (1279)
o It does not apply to a public document because there will be a Automatically when all requisites are present
copy of the document in the notarial archives o 2. Facultative compensation
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Can only be claimed by one party, but not the other o But now, before legal compensation takes place, X
(READ 1287-8) assigns to A credit 1. So for credit 1, A becomes the new
o 3. Conventional/contractual compensation creditor. There are three possibilities:
Parties agree to compensate, even if the requisites 1. The assignment was with Ys consent
are not complete (1282) A goes against Y when the assigned
o 4. Judicial compensation credit becomes due. Can Y set up
By means of court order/decree against A credit 2 (what X owes Y)?
What is legal compensation? o No, because Y consented to the
o 1. Parties are mutually debtors and creditors of each other assignment.
as principals 2. The assignment was with Ys knowledge, but
and in their own right without his consent
X owed Y 10,000. X lent Ys son 5,000 which the A goes against Y. Can Y set up against A
son used for nightclubbing. When the debt was credit 2?
due, X only gave 5,000 claiming compensation. o Yes, as long as credit 2 existed by
Correct? the time credit 1 was assigned.
No. Compensation must be between two Does not cover subsequent debts.
parties who are mutually creditors and 3. The assignment was without Ys knowledge
debtors of each other. Regardless of how the A goes against Y. Can Y set up against A
son spent the money, hes not part of the K. credit 2?
o 2. Both debts consist of sum of money, or fungible goods of the o Yes, as long as it arose before he
same kind/quality learned of the assignment
Note: it must be fungible the code wrongly says Facultative compensation
consumable o 1287 when legal compensation does not automatically take
o 3. The two debts are due place
o 4. They be liquidated and demandable 1. Deposit
Liquidated the amount is determined already X deposited 1000kg rice with Y (depositary).
o 5. Neither of the debts must be garnished In another unrelated transaction, Y owes X
o 6. Must not be prohibited by law 1000kg rice. There is no legal
Conventional requisites? compensation here because one of the
o 1. Each of the parties contracts is a contract of deposit.
o 2. The parties agree to mutually extinguish the credit But the depositor can claim in his favor
(See 1285) Assignment of credits confusing wording in the compensation. (Facultative in his favor)
provision, so heres the explanation 2. Commodatum
o Y owes a debt to X (credit 1). X owes a debt to Y (credit 2). 3. Support
In any other case, when both debts fall due, there is automatic o 1288 one of the debts arises from civil liability from a crime
compensation. This is not the concern of 1285. The victim of the crime from which the liability arises
can invoke this

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o N.B. usually the creditor is the one entitled to this option o 4. Validity of new
(bailor, depositor, recipient of support, victim of crime) Two types of novation?
When do the modes of compensation take place? o 1. Express
o 1. Legal when all the requisites concur o 2. Implied
o 2. Conventional upon agreement of the parties The two obligations must be incompatible
o 3. Facultative when the creditor entitled to the option What is expromission?
communicates his decision o The consent of the creditor and the new debtor are required,
o 4. Judicial final judgment but the consent of the old debtor is not required
Not covered by compensation: o X owes Y 50000. Z approaches Y and tells him that he will
o 1. From deposit K pay the debt. Is this valid?
o 2. From commodatum K Yes.
o 3. From support due by gratuitous title o Consequence?
o 4. Obligations from criminal offense The release of the old debtor is absolute, even if the
o 5. Taxes, fees, duties due to government new debtor becomes insolvent.
o N.B. what is common is that these are not debts per se What is delegacion? (conventional subrogation)
o The consent of all three creditor, original debtor, new debtor
NOVATION are all required. The initiative comes from the old debtor.
Delegante old debtor
When does it arise? Delegatario creditor
o 1. Changing object or principal conditions Delegado new debtor
o 2. Changing the debtor o X owes Y 50000. X approaches Z to ask him to pay for his
o 3. Subrogating third person to rights of the creditor debt. Y agreed. Is this valid?
Types? Yes.
o 1. Subjective/personal novation o Consequence?
Change in one or more parties The old debtor is absolved, in general. Exceptions:
Active subjective change in person of creditor 1. If the new debtor was already insolvent at
Passive subjective change in person of debtor the time of the novation AND
Expromission 2. Such insolvency was known to the old
Delegacion debtor or public knowledge
o 2. Objective/real novation o What about assignment of credit, do you need the consent
Change in the object or in the principal conditions of all three parties too?
o 3. Mixed novation No. Just the old creditor and the new creditor. The
Requisites of novation? consent of the debtor is not required. He must just be
o 1. Previous valid obligation notified.
Includes voidable When the principal obligation is extinguished, are the accessory
o 2. Agreement by the parties to the new obligation oligations extinguished too?
o 3. Extinguishment of the old obligation o As a general rule, yes. (Art. 1296)
This is actually a consequence
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o So pledge, mortgage, antichresis, guaranty, etc. are Definition of contract?
extinguished. o Meeting of the minds between two or more parties
o Exception? o Can one contract with oneself?
When there is benefit for a third person (stipulations Yes, an auto-contract one person acting as two
pour autrui) parties. (Ex. an agency to borrow money: he can also
o What is problem, as to subrogation? act as the lender)
In subrogation, Art. 1303, the guarantors, sureties, This is why party is the proper term.
mortgagors, etc. continue to be bound. Characteristics of obligations?
How to resolve the conflict Art. 1303 is the o 1. Obligatory force
exception to 1296. It only refers to one kind of o 2. Mutuality
novation: active subjective novation. (When the Performance cannot be left to the will of one of the
change is just from one creditor to another.) parties
Distinguish conventional subrogation from legal subrogation: o 3. Relativity
o Conventional with consent of original creditor, new creditor, o 4. Autonomy of parties
and debtor Elements of contract?
Distinguish from assignment of rights: o A. Essential
In assignment, no need for consent of the 1. Consent
debtor 2. Subject matter
Assignment doesnt extinguish the old 3. Cause
obligation and create a new one; it is just a o B. Natural
transmission of rights. Any vice in the Those incorporated by law into the contract
obligation carries over automatically
o Legal by operation of law due to acts of the new creditor Ex. Warranties in sales (against eviction, of
When is legal subrogation presumed? fitness, etc.)
1. Creditor pays another creditor who is Ex. Right to resolve in reciprocal contracts
preferred even without debtors consent o C. Accidental
2. Third person not interested in the Need to be stipulated by the parties
fulfillment of the obligation pays the debt with Ex. Purchase price in sales
the debtors express or tacit approval Ex. Conditions for performance of the
3. Even without knowledge of the debtor, contract
person interested in the fulfillment of the Classification of contracts?
obligation pays without prejudice to o A. Degree of dependence
confusion as to the latters share 1. Preparatory
One intended to lead into another K (ex. K of
agency)
CONTRACTS 2. Principal
Complete in themselves

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3. Accessory o H. According to name
Cannot exist alone (ex. mortgage) 1. Nominate
o B. According to perfection Ex. sales, lease, etc.
1. Consensual 2. Innominate
Most Ks are consensual Do ut des I give, you give
o Ex. Sales Do ut facias I give, you do
2. Real Facio ut des I do, you give
Perfected by consent + delivery of the Facio ut facias I do, you do
property What is autonomy of will?
o Ex. deposit, pledge, commodatum o Generally, you can enter into contracts depending on what you
3. Formal want
Need form for validity o This principle, however yields to various restrictions:
o Ex. donation of property 1. Law
o C. According to purpose [just theoretical] 2. Public policy
1. Transfer of ownership 3. Public order
2. Conveyance of use 4. Morals
3. Rendition of service 5. Good customs
o D. According to subject matter What is the rule on usury?
1. Involving things o Its now not a crime anymore.
2. To render service o The only limit is that it is not unconscionable
o E. According to the nature of the obligation produced o When is it unconscionable?
1. Bilateral It changes from decision to decision. Some decisions
2. Unilateral say that 5.5%/month is invalid, while some say
Ex. commodatum 7%/month is valid
o F. According to cause Latest Macalinaw v. BPI: Interest rate of the credit
1. Onerous card is 3%/month (36%/annum). HELD: Any interest
2. Gratuitous/lucrative of 3%/month and above is invalid, and will be reduced
Implication? to 1%.
Can determine degree of diligence required. What is mutuality of contracts?
For instance a gratuitous deposit requires o The K must bind both contracting parties. The legal tie must
less diligence be mutual.
o G. According to risk o What about contracts with escalation clause (adjustment
1. Commutative of interest)?
Exchange of value, so there is no risk It is valid as long as it is tied to a factor not entirely
2. Aleatory dependent on the will of the creditor (purely
Contract of risk/chance/hazard potestative)
o Ex. buying a lotto ticket What is relativity of contracts?

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o Acts between two persons cannot affect, positively or the contract. HELD: not a stipulation pour autrui because
negatively, a third person there was no deliberate benefit intended for the agents.
o Third persons neither can sue or be sued for the benefits of the When can you sue a third party for damages due to tortuous
contract interference?
o What if the contract is transmissible? o 1. There is a valid contract
If the contract is transmissible, it can pass on to heirs, o 2. Knowledge by the third party of the existence of that contract
assignees, or successors-in-interest o 3. Interference by that third person on the contractual
o When do contracts affect third parties? relationship without legal justification
1. Stipulation pour autrui Is it required that third person act maliciously?
2. Accion pauliana No. As long as it was deliberate.
3. Accion directa For instance, in an old case, the Augustinian
4. Contracts involving real rights fathers thought an old lady was being
Ex. mortgages, etc. cheated in a contract so they induced her to
What is a stipulation pour autrui requisites? break it.
o 1. Contracting parties clearly and deliberately conferred a N.B. So good faith/bad faith is not a measure it is
favor/benefit to a third person legality/illegality of justification that prevails
Not merely incidental What if one enters into a contract in the name of another without
o 2. The stipulation in favor of a third person is a part, not the authority or beyond the scope of his authority?
whole of the entire contract o The contract is unenforceable
o 3. It must not be compensated by any obligation whatsoever
o 4. Neither of the contracting parties must bear the legal Consent
representation of the third party
o 5. The third party communicated his acceptance to the obligor What are the elements of consent?
before the revocation by the original parties o 1. Plurality of subjects
Give examples showing/not showing stipulations pour autrui. o 2. Capacity
o There were squatters living in Krus na Ligas, near UP. For o 3. Intelligent and free will
humanitarian considerations, UP entered into a contract with o 4. Express/tacit manifestation of the will
the QC government to develop the area. The contracting o 5. Conformity of the internal will and its manifestation
parties are QC and UP. The informal settlers were third What are the requisites of a valid offer?
parties. Later on, there were snags in the arrangements, so o 1. Definite
the squatters filed a suit under the contract to carry out the o 2. Complete
project. HELD: it is a stipulation pour autrui o 3. Intentional
N.B. the most important element is the clear and What are the requisites of acceptance?
deliberate benefit conferred o 1. Unequivocal
o There was a sale of two parcels of property which was on a o 2. Unconditional
precipice. The sale was eventually rescinded because the If it is qualified, it is a counter-offer
land was unsuitable. The commission agents protested, saying What about an amplified acceptance?
that their commissions must be paid nonetheless, suing under
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It may or may not be an acceptance. It What if S sells the car to someone before the
depends on the circumstances period is done?
o Is silence acceptance? S is guilty of contractual breach.
Depends on the circumstances. For instance, X What if there is no consideration given?
delivers rice to A and B, who own rice stalls. X S can withdraw the offer anytime.
delivers rice to A every Sunday, and when A is not Does S still have to communicate the
there, his employee takes the rice. There is no such withdrawal?
prior arrangement with B. If both As and Bs o No. There is no separate option
employees were silent when X delivered rice to them, contract that requires him to do so.
A is deemed to have accepted, and B not. Original facts (B gave consideration). Within the
What is the cognition theory of acceptance? 30 day period, B told S that he wanted to buy the
o Offer and acceptance take effect only from the time knowledge car. S refused. What is Bs remedy?
is acquired by the other person. If during the intervening time, Specific performance, because upon
the party dies or becomes insane, the acceptance (or offer) communication of the option, there is an
has no effect. acceptance of the offer already. (Carceller
o X made an offer in Davao on Feb 1, through mail to Y, who v. CA)
received it Feb 5. Y accepted the offer Feb 5 through mail What if S had withdrawn the offer
to X. On Feb 8 Y becomes insane. The mail reaches X on contrary to the period or has already sold
Feb 13. Is the offer accepted? the car to X when B communicated his
No, under the cognition theory. acceptance what is Bs remedy?
o X made an offer in Davao on Mar 1, through mail to Y, who o Recover damages from S.
received in Mar 3. On Mar 4, Y sent his acceptance to X. o He cannot sue for specific
On Mar 5, X countermanded the offer. Both the performance because X is an
acceptance and countermand are in the mail. Which innocent purchaser.
prevails? Differentiate an option contract from the Right of First Refusal
Whichever reaches the other party first. (RFR):
Can an offeror withdraw his offer even if he gave the offeree a o RFR is the right to have first opportunity to purchase, or the
certain time to accept? right to meet any other offer.
o In general, yes. o An option contract limits the offerors power to revoke the offer.
What is the exception? o What is determined in an RFR? What is undetermined?
o When there is an option contract, which is supported by a The object is determined.
separate consideration. The terms are not.
o Give an example. Does RFR need separate consideration?
S is offering to sell B a car. B asked for 30 days to o Equatorial v. Mayfair says no. RFB disagrees with this.
think about it and paid S P5000 for this period. This is o Lintonjua v. CA says that the consideration for the loan or
a distinct contract an option contract. mortgage is already the consideration for the RFR.
Does RFR allow actions for specific performance?

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o Yes. The actual vendee may be required to sell the property to 1. Substance of the thing which is the object
the holder of the RFR at the price which he bought it for. of the contract
(See Equatorial and Paranaque Kings as examples 2. Conditions which principally moved either
where there was specific performance to enforce a or both parties to enter into the contract
RFR. This can be differentiated from Ang Yu which What if mistake is as to identity?
didnt allow specific performance of the RFR because Generally, not a ground to annul a contract.
in Equatorial and Paranaque Kings, the right was EXCEPT if the identity or qualifications is the
integrated into contract in these cases, for lease. principal cause of the contract
Ang Yu didnt stipulate RFR into contract) What about mistake as to accounting?
o Contrast: not allowed for option contracts. It only gives rise to correction
What if the one with the RFR refuses to exercise his option? o 2. Fraud
o If the one with the RFR refuses to exercise his option, the Different from fraud in 1170
seller cannot sell the property to another person on better It must be dolo causante, or one that has a decisive
terms. It has to be equal or more onerous. effect on the giving of consent
Who cannot give consent to a contract? Requisites:
o 1. Minors 1. Employed by one party against the other
Only the minor can sue to annul the contract. 2. Induced the other to enter into the contract
What about a minor who actively misrepresents 3. It must have been serious
himself as a non-minor? Can the minor still sue What if both parties employ fraud?
to annul the contract? No annulment.
He still can. If he is too young to enter into a Compare with dolo incidente?
contract, he is also too young to be held in Does not annul the contract because it did
estoppel. not induce the giving of consent
o 2. Insane or demented persons, and illiterate deaf-mutes
The consequence of incidental fraud is
N.B. Different from insanity of in testamentary law
merely damages
Being a deaf-mute is not enough; you have to be
What about dolus bonus?
illiterate too.
This is tolerable fraud and does not lead to
What is the exception to the insanity rule?
damages
When he entered into the contract during a
(Usual exaggerations in trade, when the
lucid interval
other party had an opportunity to know the
What are the situations where there is vitiation of consent?
facts) Art.1340
o 1. Mistake
o 3. Violence
When is mistake as to legal effect a vitiation of
Requisites of violence?
consent?
1. Physical force is irresistible
If the mistake is mutual and it frustrates the
2. It is the determining factor to give consent
real intent of the parties
o 4. Intimidation
To which must the mistake of fact refer to?
Requisites?
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1. Threat is determining factor to give What is the effect of violence if perpetrated by a third person (Art.
consent 1336)?
2. Threat is unjust and unlawful o It still makes it voidable. The contract is still voidable even if
o What if the threatened act is employed by a third person who did not take part in the
lawful, for instance, You, Mr. X contract.
from Surigao Institute of Law, got o What about undue influence by a third person?
my daughter pregnant. You By analogy, same rule.
better marry her, or I will report o What about fraud by a third person (Art. 1342)?
to the SC that you got her Does not vitiate consent
pregnant? Unless it led to substantial mistake and it is mutual
This is a lawful threat, so it What are the two kinds of simulation of contract?
does not vitiate consent. o 1. Absolute
o When will there be intimidation There is no underlying contract, and no intent to be
even if the threatened act is bound
lawful? What is the effect?
When there is no It is void, because there is no consent
connection between the o 2. Relative
threatened act and the They intend to be bound, but concealing the real
situation behind it (ex. sell agreement
me your house or else I Ex. making a donation to a son seem like a
will report the crime I saw sale as to not make siblings jealous
you did). What is the effect?
3. Threat is real and serious It will be treated in accordance with the rules
4. Threat produces a well-grounded fear that of the concealed contract
the person making it can and will inflict harm
o 5. Undue influence Object
What do you consider for undue influence?
Consider both the person invoking influence Requisites of object of contract?
and one being influenced o 1. It must be within the commerce of man, whether existing or
Consider: in potency
o Confidentiality, family, relations o 2. It must be licit
If the person was mentally weak, ignorant, or o 3. It must be possible
financially distressed At the time of perfection of the contract
What if it is impossible from the very start?
It must be influence that deprives one of freedom. So
it cant be lawful or due influence (ex. parental The contract does not exist because the
guidance). prestation does not exist
What if it becomes impossible in the middle of the
contract?
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Extinguishes the obligation o 4. Partnership where real property is contributed
o 4. It must be determinate as to its kind and determinable as to o 5. Interests in mutuum
quantity Must be expressly stipulated
o 6. Sale of land by an agent
Causa Power of agent must be in writing, else, sale is void
o 7. Chattel mortgage
What is the causa in onerous reciprocal obligations, like a contract o 8. Stipulation limiting common carriers duty of extraordinary
of sale? diligence to ordinary diligence
o For the seller, the payment of the money to him o Can one party require the other to follow the correct form?
o For the buyer, the delivery of the thing bought No, because that would presuppose a valid contract.
What about a remuneratory obligation? There is none here for failure of form.
o The service performed There are cases when form is required but not for validity but for
For donations? registration. What are these?
o Gratuity or liberality o Those in Art. 1358
Distinguish object form causa: 1. Acts and contracts for real rights over immovable
o Object is what is owed? property,
o Causa the proximate why of the contract. EXCEPT sales of real property or interest
Not the ultimate why, which is motive therein, which is governed by the SOF
Requisites? 2. Cession, repudiation, renunciation or hereditary
o 1. It must exist rights or those in CPG
o 2. It must be real 3. Power to administer property or any other power
o 3. It must be licit which:
Is there any instance when failure of the motive will lead the Should appear in a public document
contract to fail? Or should prejudice a third person
o Yes. 4. Cession of actions or rights from a public document
o 1. When the motive is stipulated to be a suspensive condition o Failure to follow form makes it valid and enforceable but
o 2. The realization of the motive is the cause of the contract and cannot be registered
there is an intervening serious mistake of fact o Can one party require the other to follow the correct form?
Yes. One party can require the other party to follow
Form the correct form needed (since they are valid)

General rule: no specific form required Defective contracts


When is it required?
o 1. Donation of property What are the types of defective contracts?
o 2. Sale of large cattle o 1. Rescissible
o 3. Antichresis o 2. Voidable
Requires statement of the principal and interest in o 3. Unenforceable
writing o 4. Void/inexistent
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When is it rescissible? o1. Entered into by guardians when wards suffer lesion by more
o When there is particular economic damage to one of the than of the value of the thing
parties or a third person Ex. the guardian of a ward who owns harvest with
How does the law treat the contract? value of P100K sells it for P80K.
o It is intrinsically valid but external factors allow it to be Is there lesion?
rescinded o Yes.
When is it voidable? Is there rescissible lesion?
o Defect in consent in one of the parties o No, because P20K is less than of
How does the law see it? the harvests property.
o Valid until annulled A guardian is judicially appointed. If the sale is
When is it unenforceable? made with court consent, what is the effect?
o For lack of authority, or writing, or incompetence of parties There can be no rescission.
How does the law see it? Sale of fruits and personalties are acts of
o Cannot be given effect unless ratified administration. These do not need judicial approval,
When is it void? so lesion can result. But for sale of real property, for
o Lack of requisites instance, where there must be court approval, there
Which can be cured? can be no rescission.
o Voidable and unenforceable N.B. its more than not at least
o 2. Same, but for representatives of absentees
Rescissible o 3. Disposition in favor of third person in fraud of creditors
What is the extent of rescission?
What is rescission? Only to the extent of creditor prejudice
o A process or remedy designated to render inefficacious a o 4. Refer to things under litigation if entered into without
contract validly entered into and normally binding by reason of knowledge of litigants or consent of judicial authority
external conditions creating an economic prejudice, either to a Rescissible at plaintiffs instance
party or to his creditors o 5. By special provision of law
What are the requisites for rescission? o (1382) 6. Payments made under state of insolvency for
o 1. The contract must be rescissible under 1381-2 obligations to whose fulfillment the debtor would not be
o 2. Last resort for plaintiff compelled at the time they were effected
o 3. Plaintiff must be able to return what he would be obliged to Does this require judicial insolvency?
return if rescission takes effect No, just actual insolvency
Sometimes, there is nothing to return, like a creditor in What is the effect?
action pauliana o Return what he may be obliged to return
o 4. The object of the contract must not have passed to an o When does it apply?
innocent third person Only instances #3 and 4 since for the rest there is
What are the rescissible contracts? nothing to return

Voidable
135
What are the characteristics of voidable contracts? return the fruits, value of the thing at the time of the
o 1. Effective unless set aside loss, interest
o 2. It may be assailed only for an action specifically for that o What if it is lost fortuitously?
purpose Return fruits and value of the thing at the time of the
Cannot attack it collaterally loss, but no interest
o 3. It can be confirmed o What if the thing the plaintiff must return is lost through
N.B. the law uses ratify confirm is a better term fault or fraud?
Ratification is for 1403 par. 1 Action is extinguished
Acknowledgement is for 1403 par. 2 Even if the party was incapacitated. If the party was
Confirmation may be express or tacit (implied waiver) incapacitated, he has to prove there was no fault or
May the guardian effect the ratification? fraud, if he wants the action to prosper.
Yes. o What if it is lost fortuitously?
o 4. May be assailed only by the party with vitiated consent, his Tolentino: action is extinguished unless the plaintiff
heirs, or subsidiaries offers to pay the value of the thing
What are the requisites of confirmation? Caguioa: plaintiff can still recover
o 1. Contract is voidable o What is the rule for restitution if one of the parties is
o 2. Confirmation made with knowledge of voidability incapacitated?
o 3. The cause for voidabilty has been removed The incapacitated person is not obliged to make
o 4. The one who is doing so if the one whose consent is restitution except insofar as he has been benefited by
defective the thing or price or received by him
When will action for annulment not prosper?
Unenforceable
o 1. If it has been confirmed
o 2. Prescription
What are the kinds?
What is the period to file the action?
o 1. Entered into in the name of another by one with no authority
4 years from the disappearance of the cause or legal representation, or acting beyond powers
for intimidation, violence, or undue influence o 2. Both parties are incapable of giving consent
4 years from discovery, for mistake or fraud What if one becomes capacitated and confirms it?
4 years from cessation of guardianship, in It becomes voidable
case of minor or incapacitated persons And if the other does so too?
o 3. Loss of the thing due to fraud or fault of person with right to Becomes valid
institute proceedings o 3. Falling under the Statute of frauds
o 4. Estoppel A. Agreement whereby its terms, cannot be begun
1400 and 1401 In a voidable contract, upon annulment, there within one year from the agreement
must be mutual restitution (just like resolution and rescission).
Refers to commencement, not completion
Are there any instances when the duty of mutual restitution is not
B. Special promise to answer for debt, default, or
present?
miscarriage of others
o The thing is lost due to defendants fault or fraud:
Contract of guaranty or suretyship
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C. Agreement made in consideration of marriage Void
except mutual promise to marry
D. Sale of chattel/goods/things in action for price What is it?
P500 or more o No force and effect, as if never entered into
Unless there is payment of price or delivery o Never validated, either by time or ratification
of goods Enumeration in 1409:
E. Agreement for leasing for period longer than 1 year o 1. Cause, object, or purpose is against law, morals, GC, PP,
or sale of real property/interest therein PO
Amount is immaterial for real property o 2. Absolutely simulated
F. Representation as to the credit of a third person o 3. Cause or object could not exist at the time of the transaction
G. (Art. 1443) no express trust concerning an This says those whose cause or object did not exist
immovable or any interest therein may be proved by at the time of the transaction. This is wrong,
parol evidence because there can be a contract over a future thing.
How does the contract get out of the SOF? It must be cause or object could not exist original
o 1. There is a note or memorandum in writing impossibility.
o 2. Subscribed to by the party charged or his agent o 4. Object is outside commerce of men
What are the rules re: Statute of frauds? o 5. Contemplates an impossible service
o 1. Only applies to actions which are for specific performance or o 6. Intent of the parties relative to the principal object of the
breach contract cannot be ascertained
o 2. Does not make void the contracts falling under the o 7. Expressly prohibited or declared void by law
enumeration if not in writing. It just bars action for specific Characteristics?
performance or breach o 1. No effect whatsoever
o 3. Applies only to executory, and not executed contracts in o 2. No action for annulment necessary because the nullity exists
whole or in part ipso jure
Executory one where there is no performance in Judgment of nullity is merely declaratory
either side o 3. It cannot be confirmed, ratified, or acknowledged
If either side has performed, then it gets out of SOF o 4. If performed, the restoration of what has been given is in
(1405 acceptance of benefit) order
o 4. Cannot be proved by parol evidence. o 5. Right to set-up defense of nullity cannot be waived
How do you resist a claim on an unenforceable contract? What are the special instances of void contracts?
o File a motion to dismiss o 1490, 1491 ex. contract between husband and wife
o Or use SOF as affirmative defense What is the pari delicto rule (1411-2)?
o Or object to presentation of parol evidence during trial o It literally means in equal fault.
Failure to object: waiver What if the act constitutes a criminal offense?
Can a third person assail the enforceability of an unenforceable o 1. Its a void contract which happens to constitute a criminal
contract? offense
o No, only the parties. o 2. If they are in pari delicto: no action for specific performance
or restitution for either side both are prosecuted
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o 3. What if only one party is guilty? LAND TITLES
For the guilty party, no action for restitution
For the innocent party, there can be What are the purpose and advantages of the Torrens system?
What if the object/cause is unlawful but not criminal? o 1. Make a title indefeasible
o 1. If both are guilty, there can be no specific performance or o 2. Make it imprescriptible
restitution o 3. Make it immune to collateral attacks
o 2. What if only one party is guilty? When is an attack direct?
For the guilty party, no action for restitution When the object is to annul or set aside the
For the innocent party, there can be decree of title
N.B. So whether criminal offense or not, no action for specific Can a counter-claim be considered a direct attack
performance. Restitution depends on guilt/innocence. on the title?
Article 1412-19: exceptions to pari delicto rule Yes. (Erman v. Erman)
o N.B. The parties are in pari delicto, but despite that, due to o 4. Conclusive (after lapse of period for remedies)
social considerations, allows one of the parties recovery: o 5. Declares the titled property free from liens and
o 1. Interest paid in excess of allowable by usury laws encumbrances not annotated, except:
o 2. Money paid for illegal purpose, but before it was A. Those not required to be annotated
accomplished or damage has been caused to third persons B. Unpaid real estate taxes within 2 years prior to
o 3. One of the parties to the illegal contract was incapacitated purchase (the taxes pre-2 years are paid by the
o 4. Agreement is not illegal per se but merely prohibited, and delinquent taxpayer alone)
prohibition is to protect the party seeking recovery of the C. Existing:
money paid public highways, government irrigation canal;
o 5. Payment of price beyond maximum price allowed by law for legal right of way under private law;
a commodity and the like
o 6. Employer and employee voluntarily agreeing on wages D. Limitations on disposition or use, under law
below the minimum wage or more hours than allowable But is registration a mode of acquiring title?
working hours (can ask for OT pay) o No, its not. There has to underlying basis for title before
What is pactum commissorium? registration.
o The creditor cannot appropriate the things given by way pledge o Such as?
or mortgage, or dispose of them. 1. Possession
Contrary stipulation is null and void. 2. Succession
What is pactum de non alienado? 3. Donation
o There can be no stipulation prohibiting the mortgagor from 4. Accretion
alienating his own property. 5. Sale
What is pactum leonina? 6. Acquisitive prescription (10/30 years)
o A stipulation which excludes one or more partners from any Can land registered under the Torrens system and for which a
share in the profits or losses of the partnership is void. certificate of title has been issued be taken?
o No.

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o What is the exception? It must not be contested by fellow IPs in the
If taken by the Dept. of Agrarian Reform (CARL) community
Police Power, Eminent Domain, Taxation Which lands are treated as alienable and
Who can register under PD 1529? disposable agricultural lands?
o 1. Those with open, continuous, exclusive, and notorious Those ancestral lands which are agricultural
(OCEAN) possession and occupation in character and actually used for
Of what? agricultural, residential, pasture, and tree
Alienable and disposable lands of public farming purposes
domain Including those with a slope 18% or more
What if the land is not alienable (ex. Until when can this right be exercised?
forest or park reservation)? Unless extended, until 29 Oct 2017
o It cannot be registered. The o What is the rule on Ancestral Domains?
certificate of title is void. It is communally owned. Registration is with the
Since when? Ancestral Domains Office of the NCIP, which shall
June 12, 1945 or earlier cause notice through publication and subsequent
Possession by whom? survey.
The registrant or his predecessors-in-interest Is this communal ownership the same as co-
o 2. Acquired ownership of private lands by prescription ownership under the NCC?
o 3. Accretion No.
What can be acquired? o What is the relationship of A.D. registration with existing
Private lands property rights?
Or abandoned river beds Existing property rights prevail.
When is there accretion (requisites)? o What is the priority as re: natural resources in these
1. The deposit is gradual and imperceptible Ancestral Domains?
2. Made through effects of water current The IP groups possess priority rights in using such.
3. Land is adjacent to river banks Non members of the IP group may develop and use
What does registration do? these resources for agreements not exceeding 25
To confirm and make the title imprescriptible years, renewable for not more than 25 years
o 4. Acquired ownership of land in any other manner provided by What is specially required?
law There must be a formal and written
Who can register under RA 8371 (IPRA)? agreement
o Individual members of IP communities, as to ancestral lands Extractions must be used to facilitate
(not domain), which they continuously possessed and development and improvement of ancestral
occupied in the concept of an owner since time immemorial or domains
at least 30 years before 29 Oct 1997 (approval of IPRA) Can a corporation register public land?
What else is required? o No. It can only lease public lands.
o But can a corporation acquire private land?

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Yes, as long as it is a Philippine corporation (60% N.B. contrast with accretion
rule). o [public waters]
N.B. If land is held by an individual from June 12, 1945 or ealier, it ipso o 1. Rivers
jure becomes private land (akin to #1 in the enumeration) o 2. Lakes
o THUS, if a corporation has personally possessed or is claiming o 3. Water sheds
under a predecessor-in-interest who has possessed the o [reservations]
property since June 12, 1945, the land is ipso facto converted o 1. Military reservations
to private land, which it can own. o 2. Other reservations
o Is forest land registrable? o [previously titled]
No, it cannot be registered. o 1. Previously titled lands
o Who can declassify it? What is the process of land registration?
Executive branch of government o 1. Survey
o Is payment of land taxes sufficient? Who performs this step?
No. It must be couple with possession in the concept Survey plan is signed by geodetic engineer
of an owner Approved by Director of Lands
o If it is not held since June 12, 1945, then what is required Is this an essential requisite?
apart from adverse possession for the proper period? YES.
The claimant must prove, by government act, that the o 2. File application for registration
land was classified as public and alienable lands. Where?
What is the status of reclaimed lands? In RTC where the land is actually situated
o Lands reclaimed by government are not available for sale to Can be to MTC is value is 100k or less
private parties unlike other alienable public lands. (Chavez v. What to identify?
PEA) 1. Basis of ownership
o The general rule that the grant of patent or certificate of title 2. Identity of Land
makes alienable land of the public domain automatically 3. Adjacent owners
become private land does not apply to government units and
4. Occupants/tenants
entities like the PEA.
5. Encumbrances
o When then can it become private land?
o 3. Set date of initial hearing
When it is transferred to qualified private parties or
o 4. Publication/posting
government entities not tasked to dispose public
What is the time frame?
lands (unlike the PEA)
It must precede the initial hearing or else the
What properties cannot be registered?
court has no jurisdiction
o [public lands]
Publication:
o 1. Forest lands
1. Official Gazette
o 2. Mineral lands
2. Newspaper of general circulation
o 3. Grazing lands
N.B. both must be done (Director v. CA)
o 4. Mangroves
Notice:
o 5. Manmade alluvial deposits along a river
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1. To all persons whose addresses are 2. In favor of oppositor/s
known 3. Dismiss case because nobody proved
o Within 7 days of publication in OG ownership
2.To DPWH, governor, and mayor if o 10. Court issues order for Decree
adjacent to road or public highway o 11. Issuance of Decree
3. To DAR, if river, farm, etc. Becomes incontrovertible after 1 year from issue
4. Others, by discretion (because the law allows the remedy of Petition for
Posting by ex-officio sheriff: Review within this period, under PD 1529)
1. Conspicuous place o 12. ROD issues OCT
o At least 14 days before hearing What are the remedies from an Order of Default?
2. Bulletin board in municipality or city o 1. Before decision
o 5. Oppositor files verified opposition Motion to lift order of default based on FAME
When? o 2. After decision
On or before hearing Petition for relief based on FAME
o 6. Otherwise, court issues order of general default What are the remedies from a Decision?
What if the oppositor attends hearing but does not o 1. MR on ground that decision is contrary to law/evidence
file an opposition? o 2. MNT on grounds of FAME or newly discovered evidence
1. Can be declared in default o 3. Appeal, on ground that it is contrary to law/evidence
2. Or can be given extension, after which, o When must any of these be filed?
failure to comply leads to default Within 15 days from receipt of decision
o 7. Ocular inspection What are the remedies from a Final Judgment?
What is checked? o (N.B. decision becomes final after lapse of 15 days)
1. Improvements o A. When a decree has not been issued
2. Lot owners 1. Petition for relief under ROC Rule 38
3. Adjacent owners What grounds?
What happens after? o FAME
The court prepares a report What are the requirements?
o 8. Hearing/trial o 1. Verified
What must the applicant prove? o 2. Filed 60 days from notice but no
1. Proof of publication (jurisdictional matter) more than 6 months from entry of
decision
2. Proof of ownership
o B. When a decree has been issued
3. Proof of identity of land
1. Petition for review under PD 1529, Sec. 32
What can the oppositors introduce?
What grounds?
Rebuttal evidence
o Actual and extrinsic fraud
o 9. Decision
When may it be filed?
What are the 3 situations?
1. In favor of applicant
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o Within 1 year from issuance of o 2. No negligence of the party
decree deprived
Exception? o 3. Reconveyance is not possible
o When there is an innocent o 4. Action filed within 4 years
purchaser for value What is the effect of a final decision with publication?
When is there an IPV? o It binds all parties in rem (binds the whole world)
o 1. No knowledge of defect in title o How can oppositors and squatters who entered before the
o 2. Payment of just price decree be evicted thereafter?
o 3. Examined sellers duplicate Writ of possession from the court
certificate of title o What about those who entered after the issuance of the
2. Action for reconveyance decree?
When do you file this? Ejectment suit
o If more than 1 year has elapsed What is a certificate of title?
Ground? o It is evidence of title, that the land is registered under the
o Extrinsic fraud or breach of trust Torrens system
Exception? o How many copies of the certificate?
o When there is an IPV Original with the ROD
o What is the remedy then? Duplicate with the registered owner
Action for damages ( value o What happens when there are conflicting certificates?
of land + damages) Earlier one prevails unless it is defective
When can it be filed? Compare cadastral registration with ordinary land registration:
o 1. Within 4 years of discovery of o In cadastral registration, it is the government, through the
fraud when there is need to annul Director of Lands, that commences the petition and NOT the
fraudulent deed persons claiming.
o 2. Within 10 years from breach of o Those claiming are merely compelled to go to court to make a
implied trust if aggrieved party is claim or make known their interest in the land.
not in possession of the land What is the procedure in cadastral registration?
o 3. Imprescriptible from breach of o 1. Survey conducted
implied trust if aggrieved party is in President tells Director of Lands to conduct the survey
possession of the land Notice and publication to those with interest and
Akin to a quieting of title general public
o 4. Imprescriptible from breach of Official Gazette
express trust Conspicuous place on municipal building
3. Action for damages bulletin board
Requisites for award of damages? Copy sent to mayor, barangay captain, and
o 1. Unlawful deprivation of land Sanggunian

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Persons claiming interest inform the geodetic 2. Clerical error in certificate
engineers of boundaries of claimed land 3. No serious dispute as to error or change of status
Parcels are designated as lots 4. Not amount to reopening
o 2. Petition 5. Not impair rights of IPV
Filed by Director of Lands (represented by Sol-Gen), o What if there is substantial change in the CT?
filed with RTC, and showing public interest involved. It must go through ordinary registration proceeding
Describe the land and the plan. 2. Reconstitution
o 3. Notice given (same as usual) o `What if the duplicate OCT is lost?
Publication File action for replacement
Mailing o What if the original OCT is lost?
Posting File action for reconstitution
o 4. Answer to petition filed by claimant What is the requirement for this?
1. Identity of claimant Petition that notifies occupants, adjacent
2. What is the lot claimed and what is the interest owners, adverse claimants by publication,
therein or time of possession/manner of acquisition posting, and personal notices
3. Provide adjoining owners and encumbrances or Otherwise, the reconstituted title is void
adverse claims, if any o What is the special requirement re: IPVs on reconstituted
When is a MTD allowed? titles?
Already subject to prior patent If a title has been reconstituted the buyer must
Or res judicata applies exercise extraordinary diligence to be deemed an IPV
o 5. Hearing, judgment, and issuance of decree o X pretends to be owner of land, files, for reconstitution,
What are the possible results? obtains reconstituted certificate, and mortgages to Z. Y,
1. Judgment of ownership the true owner, still has his TCT copy. Does Z have a right
o Usual remedies allowed through the mortgage?
o If no appeal performed, court orders No. Z has no better right than X, especially where Y,
LRA to issue certificate of title the true owner, still has his TCT copy.
o Registration of decree by the LRA o When is notice to owners or adjacent lots or actual
2. Declare land as public occupants NOT needed for reconstitution?
3. Order correction of technical description of When the source of reconstitution is the owners
the land or resolve overlapping titles duplicate copy thereof
o For both, as long as no impairment 3. Double sale
of substantive rights of owners o In a double sale situation, to whom does ownership
passes?
Actions, dealings, and subsequent registration The buyer in GF who first records the sale in the ROP
o What is a notice of adverse claim?
1. Amendments of CT
o When can amendment be done summarily?
1. Registered interest has terminated
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A measure to protect interest of person dealing over a o No he cannot.
piece of land, and to warn third persons dealing with o What is the prescriptive period for reversion?
that property None, because its the right of the State to recover
What is specially required in the notice? properties registered but are not capable of private
It must state how and under whom the right appropriation
was acquired
When is a notice of adverse claim effective? Chain of title
Upon entry in the day book, even if the
Can the buyer have title even if the seller does not?
owners duplicate has not been surrendered
o Yes, on certain situations. This is an exception to the civil law
What is subsequent registration?
doctrine that the stream cannot be higher than the source.
o When the land is already titled and you deal with it
o When is there registration of voluntary transactions? In general, what is the effect of a forged deed?
Once the deed is entered into the day book, the o It is a nullity and cannot serve as just title.
registrant surrenders the owners duplicate of title, Situation 1: X is the registered owner of TCT 12345. X goes to the
and pays fees US and gives title to Y in trust. Y forges Xs signature in the deed
o Example of voluntary transactions? of sale in Ys favor. Y gets TCT 12346. Y sells land to Z as IPV. Z
Sale and mortgage registers the land and gets TCT 12347.
o When is mortgage deemed registered? o Does Y have a valid title?
Entry in the day book, even if it is not annotated at the No, its void.
back of the title o Does Z have a valid title?
NOTE: for involuntary dealings, entry in the day book Yes.
is enough, even if the title is not surrendered. The o X returns from the US and learns of the sale. Can X
reason is obvious: the owner is likely not to surrender recover from Z?
his title in an involuntary dealing, unlike a voluntary No. Z is an IPV.
one. What is Xs remedy?
o How long is the life of an adverse claim? Go after Y for damages.
30 days, after which it lapses When can X recover from Z?
What must be done and what is the effect? If Z had not yet obtained his TCT.
The affidavit of adverse claim must be o Hypothetically, could Y have mortgaged the land in favor
entered into the day book, so the of Z, and would it have been valid?
subsequent buyer is constructively bound Yes and yes. While legally Y is not the owner of the
If there is a notice of lis pendens or adverse claim, land and cannot mortgage it, as far as Z is concerned,
how does it affect the double sale situation? Y is the registered owner. X must respect the
The party seeking to register cannot invoke mortgage.
good faith when there is an annotation at the Situation 2: X is the registered owner of TCT 12345. Y
back of the title misrepresents to Z that he is X and sells the land to Z. Z gets title
Can a private individual bring an action for reversion? TCT 12345.
o Does Z have a valid title?
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No. Z is negligent because he has the duty to find out Distinguish the two.
if the seller is the registered owner. (This duty also
applies if the price is suspiciously low.) Commodatum Mutuum
Note that there is no chain of title, since Y did not get SM is non-consumable SM is consumable
title in his name. Thus, Z has no title either. Ownership retained by bailor Ownership transferred to bailee
o What is Xs remedy? Essentially gratuitous Gratuitous or onerous
Return same thing Pay same amount or same
Since the title is void, X can recover the property from
kind/quality
Z. Real or personal property Personal property only
Situation 3: Y forges the deed of sale but does not register it to get Loan for use or temporary Loan for consumption
a new title. Y shows it to Z, and Z buys. Y makes deed of title in possession
favor of Z. Right to demand return of the thing No right to demand return before
o Can X recover the property from Z? in case of urgent need, even before lapse of term agreed upon
Yes, he can. There is no chain of title. expiration of term
o Who should shoulder the loss? Loss shouldered by bailor Loss shouldered by bailee even if
the loss is caused by fortuitous event
The one who is negligent. In this case, it was Z.
Distinguish between commodatum and lease.
What is the requirement of diligence for those dealing with
property covered by a Torrens title? Commodatum Lease
o Not required to go beyond what appears on the face of title. Real contract Consensual contract
SM is non-consumable thing SM can be even work or service
Essentially gratuitous Onerous
CREDIT TRANSACTIONS Distinguish between commodatum and usufruct.

Loan Contracts Commodatum Usufruct


By law or by contract By law, contract, testamentary
What are the characteristics of a loan contract? succession, or prescription
o 1. Real Contract, because delivery of the thing loaned is Purely personal right to use Real right to the fruits of anothers
anothers property property
necessary to perfect the K
Essentially gratuitous May be onerous
o 2. Unilateral Contract only the borrower has obligations upon Real contract Consensual contract
perfection Bailee only acquires use of thing, but Usufructuary acquires right to both
What are the kinds of Loan? not fruits use and fruits of the property
o 1. Commodatum (hiram) Consumable goods may be the SM May be over consumables like
The bailor delivers to the bailee a non-consumable only when the purpose of the K is for money
thing and the bailee may use it for a certain time and mere exhibition
return the same thing
o 2. Mutuum (utang) What are the characteristics of commodatum?
The bailor delivers to the bailee money or some o 1. Essentially gratuitous
consumable thing and the latter will pay the same What if its not?
amount or the same kind/quality Its a lease.
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o 2. Purpose: temporary use of the thing loaned Is the bailee liable for ordinary wear and tear of
Can acquisitive prescription in favor of the bailee the thing due to use?
vest? No.
No. There is no just title. The duty to return What are the exceptions?
prevails. o 1. If done with fault or negligence
o 3. Use is limited to the thing, but not the fruits o 2. Devoted the thing to a different
Exception? purpose from what was stipulated
If stipulated otherwise o 2. Bailee not liable for loss due to fortuitous event
o 4. SM is generally non-consumables unless the purpose of the What are the exceptions?
contract is exhibition of consumable things 1. Bailee devoted thing to different purpose
X lent Y P200000 to deposit in Ys corporations 2. Bailee kept thing longer than period
bank account to meet the minimum capitalization stipulated
requirement. Y would be tasked to return it after a 3. Thing was delivered with appraisal of its
month. What is the contract? value
Commodatum, even if the SM was o Unless stipulated otherwise
consumable goods. The purpose was 4. Balee lent the thing to a third person
merely to show requisite capitalization, not outside his household
for consumption. 5. Bailee, given a choice to save either the
o 5. Bailor need not be the owner, as long as he has possessory thing or his own thing, chose the latter
interest X lent Y his jeep to bring Ys sick wife the
o 6. Personal contract hospital. On the way back, Y took on paying
What if one of the parties dies? passengers who paid money. The jeep then was
The contract is extinguished; it doesnt get struck by lahar and was destroyed. Is Y liable?
inherited. Yes. The contract is commodatum, and Y
Cf. for usufruct, this is not the rule because devoted the jeep to a purpose different from
usufruct is a real right over the property. It what it was lent for.
attaches. o 3. Bailees are solidarily liable when the thing is loaned to 2 or
o 7. Bailee cannot lend or lease the SM of the contract to a third more bailees in the same contract
person o Can the bailee retain the thing loaned as security for
What is the exception? claims against the bailor?
Member of the bailees household No, not even due to extraordinary expenses incurred
What are the exceptions to the exception? What are the obligations of the bailor?
1. Stipulated to the contrary o 1. Allow the bailee the use of the thing loaned for the period
2. Nature of the thing forbids its use stipulated, or until accomplishment of the purpose
What are the obligations of the bailee? What are the exceptions?
o 1. Liable for ordinary expenses for use and preservation of the 1. Urgent need, which suspends the
thing commodatum

146
2. Precarium: What are the exceptions?
o A. Duration not stipulated 1. Debtor is in delay liable to pay legal
o B. Use or purpose not stipulated interest as indemnity, even in the absence of
o C. Use of thing merely tolerated by stipulation of interest
the bailor 2. Interest due shall earned interest from the
When else can the bailor demand the thing to be time its judicially demanded (interest on the
returned? interest)
Acts of ingratitude by the bailee o 2. Usury Law has been suspended
o 2. Refund extraordinary expenses for preservation of the thing But in case the interest rate is too exorbitant, the
What is the notice requirement? obligation is still valid although the interest may be
The bailor must be notified before the reduced
expenses were incurred o What is the legal interest?
What is the exception to this? 12% for loan or forbearance of money
Urgent need to repair 6% for other obligations
o 3. Refund 50% of extraordinary expenses from actual use of Ex. damages for personal injury, unearned
thing loaned profits, etc.
What is the exception? But it becomes 12% from the time when
Contrary stipulation judgment becomes final and executory
o 4. Pay damages to bailee for known hidden flaws in the thing until payment of such
loaned From whence can legal interest be counted?
What are the characteristics of mutuum? Usually, from rendition of judgment, not
o 1. Borrower acquires ownership of the thing and can dispose of demand
it But when the demand is established with
o 2. If the thing loaned is money, it must be in legal tender and in reasonable certainty, the interest begins to
case of extraordinary inflation or deflation, basis of payment run from when judicial or extrajudicial claim
may be value of the currency at time of creation of obligation is made (from default)
o 3. If consumable thing is loaned, borrower must return thing of o What are examples of SC rulings re: interest rate?
same kind/quality 5.5%/month is excessive and unconscionable (E and
Distinguish between mutuum and lease: U)
6%/month (72% per annum) is E and U
Mutuum Lease 3%/month (36% per annum) reduced to 1%/month
SM is money or consumable thing Anything (12% per annum)
Ownership is transferred Ownership is retained by lessor Penalty charge of 5%/month is E and U
Relationship is creditor-debtor Relationship is landlord-tenant or o Is an escalation clause valid?
lessor-lessee
Yes, if it also includes a de-escalation clause or a
stipulation that the rate of interest shall be reduced in
What are the rules on interest?
o 1. Interest must be expressly stipulated in writing
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the event that the maximum rate of interest is reduced
by law or the Monetary Board
Can an escalation clause stipulate that escalation What are the kinds of deposit?
is dependent on one of the parties? o 1. Judicial
No. That would violate mutuality of o 2. Extra-judicial
contracts. Voluntary
o Can a debtor be made liable for both stipulated monthly necessary
interest and the stipulated penalty charge? Distinguish between judicial and extra-judicial deposits.
Yes.
o Can there be compounding of the penalty or Extra-judicial Judicial
compensatory interest (adding to the principal)? By will of the parties By order of court
SM is movables SM may be immovable or movables
Yes, and this shall earn new interest.
Purpose is safekeeping Purpose is to secure or protect
owners right
Deposit
Essentially gratuitous Always onerous
Return upon demand by depositor Thing delivered only upon court
What are the characteristics of deposit? order
o 1. Real contract
o 2. If gratuitous, unilateral. If onerous, bilateral. What are the characteristics of voluntary deposit?
o 3. Principal purpose is safekeeping of the thing delivered o 1. Delivery made upon will of depositor
o 4. Essentially gratuitous o 2. Depositor need not be the owner of the thing, although thats
Exceptions? usually the case
1. Contrary stipulation o 3. May be oral or in writing
2. Depositary is in business of storing goods What are the obligations of the depositary?
3. Property saved from destruction during o 1. Keep the thing safely and return it when required, even if a
calamity without owners knowledge (must specific term was stipulated
compensate depositary) What are the special requirements in return if it is
Distinguish deposit from mutuum. locked or sealed?
1. Return the thing deposited in the same
Deposit Mutuum condition, if delivered closed and sealed
Purpose is safekeeping Purpose is consumption of SM
2. Pay for damages if the seal or lock is
Depositor can demand return at will Lender must wait for period to expire
SM is movables (extra-judicial) and SM is money or consumable thing broken through his fault (which is presumed)
immovables (judicial) 3. Keep secret of the deposit when the
seal/lock is broken
Distinguish between deposit and commodatum. When can the depositary open the thing
deposited, even if locked and sealed?
Deposit Commodatum 1. Presumed authority (ex. keys were
Purpose is safekeeping Purpose is transfer of use delivered)
May be gratuitous Always gratuitous
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2. In case of necessity What if the thing is non-consumable and the
o 2. Liable for loss if through fault or negligence depositary has permission to use it?
What is the presumption? It becomes commodatum
If lost while in the possession of depositary, What if it is money or consumable thing?
there is presumption of fault It becomes mutuum
How does the degree of negligence differ? But what if the principal purpose is still
For gratuitous deposit, the standard of care safekeeping?
required is less than for onerous deposit o Then it becomes an irregular
o 3. Cannot deposit the thing to a third person deposit
o 4. Liable for loss of the thing deposited, if: o When is the depositary liable even if loss is due to
1. Transferred to a third person without authority fortuitous event?
Negligence need not be proved 1. Stipulated
2. Transferred to a third person, with authority, but the 2. Used the thing without depositors permission
third person is manifestly careless or unfit 3. Delays in return
Negligence need not be proved 4. Allows others to use it, although the depositary
3. Thing is lost due to negligence of own employees himself may be authorized to use it
When is the depositary not liable? To whom can return of the thing deposited be made?
Loss of the thing without negligence of the o 1. To the depositor, heirs, or successors, or to the person
third person, if transfer was authorized, and designated in the contract
the person was not manifestly careless or o 2. If the depositor was incapacitated when the deposit was
unfit made (ex. minor):
o 5. Notify the depositor and wait for decision if he will change Return to his guardian or administrator
the way or manner of deposit Or the depositor himself if he acquires capacity
Exception? o 3. If the depositor was capacitated, but he lost it, then return to
If the delay will cause danger his guardian/legal representative
o 6. If the thing earns interest, must 1) collect interest as it Where must it be returned?
becomes due, and 2) take steps as may be necessary to o 1. Place agreed upon
preserve its value and the rights corresponding to it o 2. If no stipulation, place where the thing deposited is
o 7. Not to commingle things deposited if so stipulated, even if Even if it was transferred?
they are the same kind/quality Yes, even if it should not be the same place
So usually he can commingle? where the original deposit was made
Yes. Exception?
o 8. Not to make use of the thing, otherwise, liable for damages. When there is malice on the part of the
Exceptions? depositary who transferred the thing
1. Express permission of depositor Who shoulders transportation costs?
2. Preservation of the thing requires its use The depositor
When must the thing be returned?

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o Generally, upon demand or at will, regardless of period 2. Depositor was not expected to know the
stipulated dangerous character of the thing
o Exceptions? 3. Depositor notified the depositary about it
1. Thing is judicially attached while in depositarys 4. Depositary was aware, even without
possession depositors advice
2. Depositary was notified of the opposition of a third o Can the depositary retain the thing deposited in pledge
person to the return or removal of the thing until full payment of what is due him by reason of deposit?
When can the depositary return the thing deposited at his will Yes, he may.
(Requisites)? Cf. The rule is different from commodatum, which
o 1. The deposit must be gratuitous does not allow retention
o 2. Justifiable reasons exist When is there necessary deposit?
What are the rules on alteration by the depositarys heir (i.e. heir of o 1. In compliance with legal obligation
the depositary sold the thing deposited)? A. judicial deposit of thing where multiple persons
o 1. If in GF, the heir may either return the price he received or dispute possession of such
assign his right of action against the buyer in case the price B. deposit with bank or public institution of public
was not yet paid bonds/instruments of credit [payable to order/bearer]
o 2. If in BF, heir liable for damages and may be sued for estafa given in usufruct, when the usufructuary does not give
What is the relationship between a bank and depositor? proper security for their conservation
o The depositor is the creditor, and the bank is the debtor C. Deposit of thing pledged when the creditor uses it
o It is NOT a deposit contract, but a mutuum without authority of the owner or misuses the thing
So what is the legal effect of failure to pay D. In suits, when provided by the ROC
deposited money? E. Constituted to guarantee contracts with the
Its failure of debtor to pay a loan, and not government
breach of trust from depositarys failure to o 2. Made during a calamity
return the SM o 3. By travelers, in hotels and inns
When does the obligation of a bank to pay interest What are the required actions of the depositor?
on a deposit cease? 1. Depositary is informed about the effects
When the operations of the bank are brought by the guests
completely suspended by the C.B. 2. Guests took precautions for safekeeping
What are the obligations of the depositor? When is the hotelkeeper liable, regardless of
o 1. Pay expenses for preservation of the thing if deposit is amount of care exercised?
gratuitous 1. Loss or injury is caused by servants,
o 2. Pay for losses incurred due to character of the thing employees, or strangers [if the two requisites
deposited concur above]
What are the exceptions? 2. Loss is caused by robber or thief acting
1. Depositor was unaware without irresistible force
When is the hotelkeeper not liable?

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1. Loss is caused by force majeure or If there is doubt, what is presumed, guaranty or suretyship?
theft/robbery attended by irresistible force o Guaranty. Suretyship is never presumed.
2. Loss is due to acts of guests, his family, o Is an unconditional guaranty a suretyship?
servants/visitors No. It just means that unlike a conditional guaranty, it
3. Loss due to character of the things needs no other extraneous event to trigger the
brought into the hotel guarantors liability. But the principle remains that the
Can a hotelkeeper stipulate absolute exemption principal must first default.
from liability? Differentiate insurer of debtors insolvency (G) and insurer of
No. This is void. the debt:
Can the hotelkeeper retain the things of guests as o 1. Surety promises to pay the principals debt if the principal
security for unpaid lodging expenses and will not pay.
supplies? Must a surety be notified of the principals default
Yes. first?
See the usual rule on deposits, with which No. In fact, no prior demand is needed;
this is consistent. direct suit against the principal is the
Contra commodatum cant do this. demand in itself.
Judicial deposit: see above table for distinction vis--vis extra-judicial Is there need to demand the principal to pay first?
deposits No, especially where demand would be
useless. A suretyship is a direct contract to
Guaranty and Suretyship pay the debt of another. The surety is
absolutely liable as soon as default is made,
Distinguish between guaranty and suretyship without need for demand from the principal
or notice of default.
Guaranty Suretyship o 2. Guarantor promises to pay the principals debt if the
G is secondarily liable S is primarily liable and not entitled principal cannot pay. So this requires due diligence and
to benefit of excussion
exhaustion of remedies against the debtor.
G binds himself to pay only when S assumes liability as a regular party
principal cannot pay to the undertaking and promises to X Corp is liable to Y Corp for P5M. Z is X corp.s surety. X Corp
pay if the principal does not pay defaulted and was placed in a state of suspension of payments.
G is insurer of debtors insolvency S is an insurer of the debt Can Y Corp. proceed against Z?
Usually embodied in a separate Usually embodied in the same o Yes. The suspension only applies to X Corp, and as surety,
agreement before or after the instrument as the principal there is no need to exhaust X corp.s property before going
principal obligation obligation; thus, the surety is a party against Z.
to the contract
H and W are spouses. H signed a suretyship agreement to cover
for the liabilities of XYZ corp. Can the conjugal partnership be
Is there need for a separate consideration which the surety must
made liable when XYZ defaults?
receive?
o No. This act did not redound to the benefit of the partnership
o No. The surety is bound by the same consideration that
and is thus borne alone by H.
makes the contract effective between the primary parties.
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What is the nature and extent of guaranty? [nature of obligation]
o 1. Guarantee is generally gratuitous 4. Suretyship
What is the exception? 5. He is a judicial bondsman and sub-surety
Contrary stipulation 6. Pledge or mortgage has been given by the G as
o 2. Accessory contract special security
What if the principal obligation is void? [debtor clearly insolvent]
The guaranty cannot exist. 7. Debtor is insolvent
o 3. Guarantors liability cannot exceed the principal obligation 8. Presumed that execution of debtors property will
But does this provision include interest and other not satisfy the obligation
costs? [absconding]
No. The liability for interest and other costs 9. G absconded or cannot be sued in the Philippines
does not stem from contract but from the Unless he left a manager/representative
default. So the guarantor can technically o 2. Compromise between the creditor and principal can
pay more than the obligation secured. benefit but not prejudice the guarantor, otherwise, he would be
o 4. Doubt must be resolved in favor of the guarantor or surety released
What is the exception? o 3. If there are several guarantors and only one debtor, the
Compensated sureties guarantors are entitled to benefit of division. Their liability is
What are the qualifications of a guarantor? joint.
o 1. Possesses integrity Exceptions?
o 2. Capacity to bind himself 1. Solidarity
o 3. Sufficient property to answer for obligation 2. Any of the circumstances in 2057 taking
o What if the creditor required and stipulated a specific place
person should be the guarantor, can there be o A. A guarantor is convicted of crime
substitution? involving dishonesty
No. The selection of the guarantor is part of the terms o B. Guarantor becomes insolvent
of agreement. When can a guarantor who paid the entire debt
What are the effects of guaranty between the guarantor and seek reimbursement from co-guarantors?
creditor? 1. He paid by virtue of judicial demand
o 1. Guarantor has right to benefit of excussion 2. AND because the principal debtor was
o Exceptions? insolvent
[waiver] o What is a continuing guaranty or suretyship?
1. G expressly renounced excussion One that is constituted to cover even future debts, the
2. G fails to set-up benefit of excussion and fails to amount of which is not yet known.
point out to the creditor available property of the What are the effects of guaranty between the debtor and
debtor in the Philippines guarantor?
3. G fails to interpose it as defense before judgment is o A. Guarantor who pays for a debtor must be indemnified by the
rendered against him latter.

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What does the indemnity cover? 6. Debt has become demandable because period for
1. Amount of debt payment has expired
2. Legal interest from the time payment was 7. After lapse of 10 years when the principal
made known to the debtor obligation has no fixed period for maturity
3. Expenses incurred by guarantor after Unless the nature of the obligation is such
notifying debtor that payment has been that it cannot be extinguished except for a
demanded of him period longer than 10 years
4. Damages, if due o In all these cases under #3, what are the options of the
What are the exceptions to indemnity rule? guarantor (what does proceed against the debtor
1. Guaranty constituted without knowledge mean)?
or against the will of the debtor. In this case, 1. Obtain release from the guaranty
the guarantor can only recover to extent 2. Demand security to protect him against creditors
debtor was benefited. claims or insolvency of the debtor
2. Guaranty did not intend to be paid back How is guaranty extinguished?
(donation) although in this case, debtors o 1. When the principal obligation is terminated (the usual ways
acceptance is needed see oblicon)
o In any case, payment is valid as to Also, material alterations (where there is additional
the creditor who has accepted it obligation, new burden, etc.)
3. Waiver o 2. Release of one guarantor by the creditor
Can the guarantor demand more than what he has What is the effect if it is without the consent of the
paid? other guarantors?
No. Then they benefit to the extent of the share
o B. Guarantor has right to be subrogated against the debtor to of the released guarantor
enforce the indemnity o 3. Extension of term granted by the creditor to the debtor
o C. Guarantor can proceed (see below what proceed means) without guarantors consent
against debtor even before payment when: What if theres a continuing guaranty allowing for
[Just causes for guarantor] extensions?
1. He is sued for payment Then extension of term does not extinguish
2. Reasonable grounds to fear the debtor intends to the guaranty.
abscond Does the creditors neglect to immediately sue the
[Insolvency] principal constitute an extension of term?
3. Insolvency of debtor No. There has to be a separate agreement
4. Debtor is in imminent danger of insolvency for a definite period without the consent of
[Expiration of period, etc.] the guarantor.
5. Debtor bound himself to relieve him from the o 4. If there can be no subrogation because of the fault of the
guaranty within a specific period, and this period has creditor
expired What is an example of this?

153
When the creditor releases or fails to register Because the obligation solely rests on the part of the
a mortgage creditor: to return the thing upon fulfillment of the
What if the guarantors are solidary? principal obligation
Same effect. Can the pledgee keep the thing for himself after
Does this provision apply to sureties? default?
No. (Zobel v. CA) No. This is pactum commissorium
What about legal and judicial bonds? o 4. Subsidiary contract
o They are not entitled to the benefit of excussion because they Obligation does not arise until fulfillment of the
are guarantors but sureties whose liability is primary and principal obligation
solidary. X borrowed 400K from Y, pledging shares of stock worth 800K to
secure the obligation. An economic crisis occurred, plunging the
Pledge value of the stocks to 100K. Can Y demand X surrender other
shares worth 700K?
What is a pledge? o No. There is no showing the fall in value was due to Xs fault.
o It is a contract by virtue of which the debtor delivers to the Likewise, there was no showing Y was deceived as to the
creditor or third person a movable or document evincing substance or quality of the shares, where would have the right
incorporeal rights to claim another thing in their place or immediate payment of
o Purpose is to secure a principal obligation the obligation.
What are the essential requirements of pledge? o And more importantly, the right of a pledgee is to just sell the
o 1. Constituted to secure fulfillment of principal obligation pledged share at a public sale.
o 2. Pledgor or mortgagor is absolute owner of the thing May the pledge secure future advancements that the pledgor may
What if the thing is conjugal property of spouses procure from the pledge?
and only one acted as pledgor? o Yes.
The pledge is only over of the property o Contra: chattel mortgage cannot secure future debts
What if the property is covered by certificate of Distinguish pledge from REM:
title (this actually applies more to REM, not
pledge)? Pledge REM
The innocent pledgee or mortgagee for value Movable property Immovable property
can rely on the certificate, if there is no Delivery of object pledged Delivery of the thing NOT necessary
reason to further inquire, and is protected Pledge not valid against third REM not valid against third persons
persons unless description of the if not registered
o 3. Person has free disposal of the property, or legally
thing pledged + date of pledge is in
authorized to do so public instrument
o 4. Thing pledged is delivered to the creditor or third person by
common agreement Who has ownership of the thing pledged?
Characteristics of pledge? o Still the pledgor
o 1. Real contract thing must be delivered o Can he sell the thing pledged?
o 2. Accessory contract Yes, as long as the pledgee assents
o 3. Unilateral contract
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o Does this sale extinguish the pledge? accept the money and return the car. Can X compel Y to
No, it survives and follows the thing, even if accept?
ownership is transferred No. The debt was due Dec. 1. When a period is
o What happens then? stipulated, it is presumed to be for the benefit of both
1. The pledgee still possesses the thing until the the debtor and creditor. In fact here, Y is authorized
obligation is paid to use the car, which is the presumed benefit. X
2. The pledgee may still sell the thing in case of cannot pre-pay.
default When can the pledgor request the thing pledged be deposited
Can the debtor demand its return before the debt is paid? judicially or extra-judicially?
o No, possession is the security of the creditor. o 1. Creditor used the thing without authority
o What is the exception? o 2. Creditor misused the thing
If the thing is in danger of being impaired or o 3. Thing is in danger of being lost or impaired due to
destroyed, the pledgor can substitute it with a thing of negligence or willful act of the pledgee
the same kind and quality What is the effect of sale of the thing pledged upon default of the
o What presumption arises upon return of the thing debtor?
pledged? o The principal obligation is extinguished whether the price of
That the pledge has been extinguished sale is more or less than the amount due
Is there a presumption that the main obligation o 1. If the price is more than the amount due, the debtor is not
has been extinguished too? entitled to excess
No. o 2. If the price is less than the amount due, the creditor is not
What is the obligation of the pledgee? entitled to recover the deficiency
o Take care of the thing pledged with the diligence of a GFF o Differentiate from CM:
o When is he entitled to reimbursement? In CM, the excess is returned, and the deficiency is
Expenses incurred for preservation demandable
o When is he liable? (Take note of Recto Law, however)
Loss or deterioration by reason of fraud, negligence, What are examples of legal pledges under the law?
delay, or violation of terms of contract o 1. Possessor in GF exercising right of retention for necessary
Is a pledgee authorized to transfer possession of the thing to and useful expenses
another? o 2. Usufructuary exercising right of retention for taxes paid on
o No. Remember, hes not the owner. He has to be authorized the capital and for extraordinary expenses
to do this. o 3. Mechanics lien
o Can the pledgee use the thing pledged? o 4. Agent exercising right of retention for necessary expenses
None. He needs authority, again. for execution of agency and for damages which execution of
o X borrowed P10K from Y, payable Dec. 1. X pledged his agency caused him
car to Y, allowing Y to use it by express stipulation. X o 5. Bailee exercising right of retention for damage caused by
wanted to pay his debt on June 1, demanding that Y flaws in the thing loaned where the bailor knew about it but did
not inform the bailee

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o 6. Depository exercising right of retention for necessary Creditor has no right to fruits Vendee entitled to fruits
expenses if deposit is gratuitous or for fortuitous damages Upon default, creditor is not the Upon consolidation, vendee is the
caused him by the character of the thing deposited owner (no pactum commissorium) owner
o 7. Hotel-keeper, over guests things for unpaid board and
lodging
o How does the pledgee/creditor exercise his remedy? What is the effect of REM?
But must first demand payment of the amount due o It subsists until after payment of obligation.
Have the thing retained sold at public auction, within 1 o The right of the mortgagee in case of non-payment is
month after demand foreclosure of the REM. Pactum commissorium is against
public policy.
Real Estate Mortgage (REM) What is the extent of the mortgage?
o REM is not limited to the property itself, but also its accessions,
What is a REM? improvements, growing fruits, rents, income, proceeds of
o A contract where the debtor secures to the creditor the insurance in case it perishes, or expropriation value if
fulfillment of a principal obligation, by subjecting to such condemned.
security immovable property or real rights in case the principal o EXCEPT: contrary stipulation.
obligation is not complied with. Can the mortgage be alienated or assigned?
What are the characteristics of a REM? o Yes and the assignee or transferee is entitled to foreclose the
o 1. Accessory and subsidiary contract mortgage in case of non-payment of the obligation. If the
o 2. Unilateral because the only obligation is for the creditor to transferee becomes the owner of the property this is a void
free the property from encumbrance upon payment pactum commissorium.
o 3. Mortgagor retains possession of the property in general What if the mortgagor transfers the property?
Remember: pactum non alienando is void (prohibition o 1. It does not relieve him from his obligation to pay the debt to
for the mortgagor to dispose the property) the creditor, in the absence of novation.
o 4. Over immovable or alienable real rights over immovables o 2. Creditor must make demand against the debtor. If the latter
o 5. REM must appear in a public document recorded in the cannot pay, then the creditor can demand payment of the
ROP credit from the possessor of the property (transferee), and
If not registered, just binding between the parties foreclose thereafter if there is non-payment.
o 6. REM is a real right that attaches to the property 1. Judicial foreclosure under Rule 68 of the ROC.
So the REM is both a real right and real property by o Is there redemption here?
itself No, just equity of redemption where the mortgagor is
o 7. Mortgagor must be the absolute owner of the property, given the chance to pay the debt within the 90-120
otherwise, it is void days period after the judgment becomes final OR
after the foreclosure sale but before confirmation.
REM Pacto de retro sale o There is redemption, however, if the mortgagee is a banking
Accessory contract Principal contract institution (1 year for natural person mortgagors and 3
No transfer of title Conditional title months/before registration whichever comes first for juridical
No transfer of possession Conditional transfer of possession
person mortgagors)
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2. Extrajudicial foreclosure under Act 3135. o What if the purchaser contends the right of the redeeming
o When does this apply? person to do so (e.g. it was not the mortgagor but one of
When the mortgagee is given specific power or his heirs that is redeeming)?
express authority to foreclose. The sheriff cannot usurp judicial functions. He cannot
If there is none, there can be no EJ foreclosure. decide, so he must advice judicial redress to the
o Where must auction be conducted? parties.
Province where the property is found Does the mortgagee have a right to recover deficiency post-
o What is the requirement of notice? foreclosure?
1. Posting of notice of sale in 3 public places therein o Yes, he may. The action to recover the deficiency prescribes
2. Publication in newspaper of GC once a week for 3 after 10 years from right of action.
consecutive weeks If a mortgagor dies, what are the 3 mutually exclusive options of
If the sale is postponed, republish. the mortgagee?
Is personal notice to the mortgagor required? o 1. Waive mortgage and pursue claim against estate as an
No. Unless, of course, the contract provides ordinary claim
for it. o 2. Judicial foreclosure of the mortgage, and recover deficiency,
Can these notice requirements be waived? if any as an ordinary claim against the estate
No, its for the benefit of the public, not the o 3. Rely on the mortgage exclusively (e.g. EJ foreclosure),
parties. without right to file claim for deficiency
o How long does the mortgagor have to redeem? What if the mortgagor files a collection suit?
Within 1 year from date of sale. If the land is o It bars foreclosure of mortgage. The creditor cannot avail both
registered property, then from registration of remedies because it is in essence a splitting of his cause of
certificate of sale. action into two.
But if the mortgagor is a juridical person and the What is the nature of a writ of possession?
mortgagee is a bank, quasi-bank, or trust entity, then o The purchaser may petition for a writ of possession within the
redemption is only within 3 months from foreclosure redemption period by filing an ex parte motion under oath.
or registration of certificate of sale with ROD, o He files a bond. Upon approval of the bond thereafter, the
whichever is first. court must issue a writ of possession. It is a matter of course
o What is required for a valid redemption? and not a matter of discretion.
1. Within proper period o Since, its ex parte, any questions regarding the validity of the
2. Payment of purchase price of property plus 1% sale, the mortgage, etc. must be tried in separate proceedings.
interest per month When else may the purchaser file for a writ of possession?
Taxes with same 1% interest if paid by o When ownership has been consolidated upon himself, at the
purchaser end of the redemption period.
3. Written notice of redemption served on officer who o The bond is no longer necessary in this case because he is the
made the sale, and duplicate filed with ROD absolute owner already.

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Can an ex-parte writ of possession be enforced against a third o 1. Accessory contract
party who is in actual possession of the foreclosed property and is o 2. Formal contract because the amount of the principal and
not in privity with the mortgagor? of the interest must be in writing or else the antichresis contract
o No, it cannot. Under Art. 433 of the NCC, one who claims to is void
be owner of a property possessed by another must bring Is delivery of the property a requisite for the contracts validity (i.e.
appropriate judicial action in this case, it must be an action is it a real contract)?
for ejectment (or publiciana). o NO. The delivery is only to allow the creditor to receive the
o To rule otherwise would unduly prejudice the third person who fruits and apply them, and not to make the contract valid.
did not have a chance to oppose the claim, since the o But note, it is a formal contract.
proceedings to issue a writ of possession are ex parte. What is the requirement of appraisal?
What are the remedies of such third party claimants to property o The fruits of the immovable must be appraised at their actual
involved in a foreclosure sale, when the third party was not part of market value at the time of application (to know how much is
the foreclosure and there is no privity? deducted).
o Two options: a) terceria where he serves upon the sheriff an Can the debtor demand the return of the property before the debt
affidavit of his title and a copy is given to the judgment is totally paid?
creditors; in this case, the officer is not bound to keep the o No. It stands as security.
property; b) independent separate action, to recover ownership What are the obligations of the antichretic creditor?
and possession of the contested property (Rule 39, Sec. 16 of o 1. Pay taxes and charges of the estate and necessary
the ROC) expenses on the property
Is a purchaser in a foreclosure sale who hasnt turned over the Where does he take the funds?
excess of the proceeds of sale to the mortgagor entitled to a writ of From the fruits of the property
possession? Failure to do so damages in favor of debtor
o In a case, the SC ruled that hes not entitled. There can be contrary stipulation as re: payment of
Can a REM cover future loans or advancements? taxes and charges
o Yes, if stipulated by the parties in the contract. o 2. Apply fruits to the interest, and then the principal of the debt
What are the creditors remedies in case of default?
Antichresis o 1. Bring action for specific performance
o 2. Petition for sale of real property in foreclosure sale under
What is a contract of antichresis?
Rule 68 of the ROC, or if the parties agreed upon it, extra-
o A contract where the creditor acquires right to receive the fruits judicial foreclosure under Act 3135
of an immovable of his debtor, with the obligation to apply the
proceeds to the payment of interest (if there is), and then to the Antichresis Pledge
principal of the credit Real property Personal property
o What if the loan does not earn interest? Formal contract Real contract
There can still be a contract of antichresis. The
payments are applied directly to the principal, then.
o Again, take note that pactum commissorium is void. Antichresis REM
What are its characteristics? Property delivered to creditor Debtor usually retains the property

158
Creditor acquires only the right to No right over fruits, but it is a real one can file for replevin)
receive fruits of the property. It is right that attaches to the property Registration in CM Registry is Registration in ROP not necessary
NOT a real right. necessary to be valid beyond the for validity (just in a public
Creditor pays taxes and charges Creditor has no such obligation parties document)
unless stipulated otherwise If foreclosed, excess goes to debtor If sold, excess and deficiency are not
Creditor given possession of the Mortgagee has no such obligation and deficiency can be recovered by recoverable in general
property must apply the fruits to the the creditor. EXCEPT: if Recto Law
interest then the principal applies

Chattel Mortgage What are the offenses involving CM?


o 1. Knowingly removing personal property covered by CM to
What are the characteristics of a CM contract? any other province or city without written consent of the
o 1. Accessory contract mortgagee
o 2. Formal, because it must be registered in the CM Registry to o 2. Selling or pledging such personal property without consent
be valid of the mortgagee written on the back of the mortgage and
What if its not registered? recorded in CM Registry
Its not null and void, but it only binds the o What if the mortgagor thereafter pays the debt anyway or
parties. informs the mortgagee post-sale?
o 3. Unilateral only the creditor has obligation: to free the thing He is still criminally liable under the RPC.
from encumbrance upon fulfillment of the obligation o Is the sale valid?
o 4. It must be constituted by the absolute owner of the thing with Yes, but the mortgagor is liable criminally.
free disposal of the property What is valid subject matter of CM?
X went abroad and left his car with its certificate of registration o 1. Shares of stock in corporation
with Y. Y falsified Xs signature and sold it to Z. Z, in order to pay o 2. Interest in business
for the amount, executed a CM over the car in favor of a savings o 3. Machinery and house of mixed materials treated by the
and loan association which lent money to him. Z failed to pay and parties as personal property
the car was sold at a public auction where the SLA won. X And no third party will be prejudiced thereby
returned to the country and sought to recover possession of the o 4. Vessels, if the mortgage is recorded with MARINA
car. Can he? o 5. Motor vehicles, if mortgage is recorded with both the LTO
o Yes. A CM can only be constituted by the absolute owner with and the CM Registry
free disposal thereof, which Z was not since the seller, Y, had o 6. House intended to be demolished
no title over the car. Since X was unlawfully deprived of o 7. Growing crops and large cattle
possession of a movable, he can recover possession. What is the rule when the parties constitute a CM over a building?
o However, since Z purchased the car from a public sale, X must o In general, this cannot be done, but the parties are estopped
reimburse the SLA for the price at which it was bought for. from questioning it. Thus, the CM is valid. But if it will be
foreclosed, follow procedure for foreclosure of REM, because
CM Pledge third parties are not bound by the constitution of a CM over
Delivery is not necessary (to get it, Delivery is necessary immovables.
159
What if the property is found in a place other than where the 1. Given to the mortgagor
mortgagor resides? o N.B. unlike REM, where it isnt
o Register it in both registers in both provinces. Otherwise, the essential to give personal notice to
CM is void as to third parties. the mortgagor
o But again, the CM is valid as between the parties this is 2. Posting of public notice of time, place, and
always the rule if there is some infirmity: valid between the purpose of the sale
parties, but not against the world. o Is there right of redemption after sale?
What is the effect of registration? No, there is none, unlike in a REM.
o Makes the CM effective against third parties. It creates a o Can the mortgagee recover deficiency post-sale?
lien/real right which follows the chattel wherever. Yes, unlike in a pledge.
What if the mortgage is assigned to another? Action accrues within 10 years from sale.
o 1. No need to record the assignment in the registry What is the exception?
o 2. The assignee is subrogated to the rights of the transferee to Recto Law, if it is a sale of personal property
the CM in installments.
What is an Affidavit of GF? So if it is foreclosed, no deficiency. But
o It is an oath in a contract of CM that the parties: under the Recto Law, after specific
severally swear that the mortgage is made for the performance which leads to execution sale,
purpose of securing the obligation specified therein there can be recovery of deficiency because
and for no other purpose it is not a foreclosure.
and that it is a just and valid obligation and not one
entered for fraud Quasi-contracts
o If it is not appended, same rule as above: it cannot bind third
persons without notice or subsequent creditors. When does negotiorum gestio arise?
o In effect: an Affidavit of GF gives the CM preferred status. o When one voluntarily takes charge of the management of
o What is the implication of the Affidavit of GF which has business or property of another, without any power from the
then become doctrinal in CMs? latter
Because it only secures the obligation specified, a CM o What is he obliged to do?
cannot cover future debts, unlike a REM. Continue such management until termination of the
What are the options in foreclosure? affair and its incidents, or the owner is in a position to
o 1. Public sale substitute him
o 2. Private sale needs express stipulation in the contract o When does negotiorum not arise?
EXCEPT: a) fraud or b) duress 1. Property or business has been abandoned
o When can a CM be foreclosed? 2. Manager has been tacitly authorized
After 30 days from time that the condition is broken What are the obligations of the officious manager?
N.B. the 30 day period is a grace period to o 1. Perform duties with diligence of GFF
help the mortgagor discharge the obligation o 2. Liable for damages through fault or negligence
After there is 10 day notice: o 3. Liable for acts of a delegate, if he appoints one
o 4. Liable for fortuitous event if:
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A. He undertakes risky operations 1. He must pay legal interest if a sum of money is
B. Prefers own interest to that of the owner involved
C. Fails to return the property or business upon 2. Liable for fruits received or fruits that should have
demand of owner been received if it bears fruits
D. Assumption of management in BF 3. Answerable for loss or impairment
E. He is manifestly unfit to carry on the management, o What if he accepted it in GF?
unless done to save the property or business from 1. Answerable for loss or impairment only so far as it
imminent danger has benefited him
F. His intervention prevented a more competent 2. If he already alienated it, return the price or assign
manager from taking over, unless done to save the the action to collect the sum
property or business from imminent danger 3. Exempt from returning/restoring it if in GF, he
o 5. Liable for contracts entered into with third persons, unless: already destroyed the document, allowed action to
A. owner ratified prescribe, gave up pledges, or cancelled guaranties
B. the contract refers to things pertaining to the owner
What are the obligations of the owner? Concurrence and Preference of Credits
o If he derived benefit or the property was saved from imminent
danger: What are properties exempt from liability for obligations?
1. Liable for obligations incurred in his interest o Survival necessities
2. Reimburse officious manager for necessary and o 1. Family Home, except for:
useful expenses, and damages the manager may A. non-payment of taxes
have suffered B. debts prior to constitution of FH
o If he did not derive benefit: C. debts secured by mortgage on premises of the FH
Still liable as above if: a) the manager acted in GF, D. debts due to laborer, mechanics, architects, etc. for
and b) property or business is intact and ready to be the construction of the FH
returned to the owner o 2. Clothing and necessaries of the family
When does negotiorum end? o 3. Furniture and household things not exceeding 1K
o 1. Owner repudiates it or ends it o 4. Provisions for family for 3 months
o Money received for support
o 2. Manager withdraws from management
o 3. Death, civil interdiction, insanity, or insolvency of owner or o 1. Right to receive support and things procured from such
manager support
o 2. Earnings within the month to support the family
When does solutio indebiti arise?
o 3. Proceeds of life insurance
o Something is received when there is no right to demand it and
o 4. Right to receive legal support from government or those
it was given through mistake
procured from such
What is the obligation of the recipient?
o Employment/trade necessities
o He must return it.
o 1. Tools and implements for trade/employment
o What if he accepted it in BF?
o 2. 2 beasts of burden used in occupation
o 3. Professional libraries

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o 4. One fishing boat and net for fishermen o 7. Recorded attachments, by virtue of judicial order
o Specially enumerated o 8. Warranty in partition of co-heirs of property
o 1. Lettered gravestones o 9. Conditional donations, on the immovable donated as to
o 2. Copyrights and other properties exempted by law pecuniary charges and other conditions
o 3. Property in custodia legis, and of public dominion o 10. Premiums for 2 years in favor of insurers, on the insured
What are preferred credits as to specific movable property? (2241) property
o 1. Taxes on the movable What is the order of preference as to other properties of the
o 2. Malversation by public officials of such movables debtor? (2244)
o 3. Vendors lien o 1. Funeral expenses
As long as debtor still possesses it o 2. Wages of employees for one year
if resold, on the proceeds of sale o 3. Expenses of last illness
o 4. Credits secured by pledge, chattel mortgage o 4. Workmens compensation
o 5. Mechanics or repairmans lien, on the thing o 5. Support for one year
o 6. Laborers wages, on the thing o 6. Support during insolvency
o 7. Salvage, on the goods saved o 7. Fines in crimes
o 8. Tenancy, on the share of fruits/harvest o 8. Legal expenses for administration of insolvents estate
o 9. Carriers lien, on the goods carries o 9. Taxes other than those over specific property
o 10. Hotels lien National government first
On movables belonging to guests, but not for money Then to province
loaned to guests Then to city or municipality
o 11. Crop loan, over the fruits harvested o 10. Torts
o 12. Rentals for one year, on the movables in the property o 11. Donations
leased o 12. Credits in public instrument or covered by final judgment
o 13. Claim of depositor, on goods wrongfully sold by the Have preference among themselves in order of
depositary property of dates of instruments or judgments
o For these cases, what if the movables on which the lien What is the order of preference of credits?
exists have been wrongfully taken? o 1. Credits which enjoy preference as to specific movables
The creditor can demand them from any possessor, exclude all others to the extent of the value of the movable
within 30 days from unlawful seizure o 2. If there are two or more credits as to the same movable,
What are preferred credits over specific immovable property? claims are pro rata (meaning, the enumeration is not in order)
(2242) Except for payment of taxes due the State; this
o 1. Taxes, on the immovable always goes first
o 2. Vendors lien, for sale of real property o 3. APPLY SAME RULES TO SPECIFIC IMMOVABLES
o 3. Contractors lien, over the property o 4. For enumeration in 2244, follow the order
o 4. Lien of material-men, when material was used for property o 5. For common credits, no preference; just apply property pro
o 5. Mortgages recorded in ROP rata regardless of dates
o 6. Expenses of preservation, when the law authorizes X purchased an aircraft in cash, and had outstanding balance of
reimbursement (see property law and oblicon) P500K. He incurred indebtedness of P300K for repairs with a
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repair company over the aircraft. He borrowed P1M from a bank o It applies to situations where a debtor has properties, but not
for additional capital and constituted a CM on the aircraft. During enough to pay debts as they fall due. He is still solvent, but not
a flight, a passenger was injured and was awarded P200K in liquid.
damages. The aircraft was sold for 1M. The following claims thus What is the effect of suspension of payments?
exist o 1. No disposition of property of debtor except in ordinary
o A. Vendors lien on movable course of business
o B. Repairmans lien on movable o 2. No payment except in ordinary course of business
o C. CM lien on bank loan o 3. Upon request to court, all pending executions against debtor
o D. Tort claim shall be suspended
o What is the order of preference? Except those covered by mortgage
C CM lien on bank loan prevails over the tort claim. Which creditors are not affected by suspension of payments?
The liens of the vendor and repairman do not exist o 1. Those with claims within 60 days immediately preceding
anymore because the property has been sold and filing of petition:
thus the debtor is not in possession of the thing. The A. claims for personal labor
claims become ordinary claims that are defeated by B. claims for maintenance
the CM lien of the bank. C. expenses of last illness of debtor
When does the preference of workers to wages apply? D. Funeral of spouse or children of debtor
o When there is a declaration of bankruptcy or judicial liquidation o 2. Those possessing legal or contractual mortgages
of the company What is the procedure to petition for suspension of payments?
What happens when there is a distressed corporation that asks for o 1. File petition in RTC where debtor resides 6 months prior.
rehabilitation and suspension of payments? o 2. Along with the petition, file:
o Preferred creditors cannot assert preference anymore, and A. Verified list of creditors
stand in equal footing with other creditors. This allows the B. Debts and liabilities
receiver to exercise discretion free from legal interference that C. Statement of assets and liabilities
might hinder rescue of the company. D. Proposed agreement/schedule
o 3. Court issues order calling all creditors to a meeting (2-8
Insolvency Law (old law) weeks from order)
Publication and notice
What is the difference between suspension of payments and o 4. Meeting of creditors
insolvency? Quorum: represent at least 60% of liabilities of the
o In suspension, purpose is to delay payments; in insolvency, debtor
purpose is to discharge debtor from debts o 5. Creditors approve the proposition
o In suspension, amount of debt is not changed; in insolvency, Need double majority vote to approve:
creditors receive less than their credits (or where there are A. 2/3 of creditors
preferences, some may not receive at all)
B. 2/3 of 60% of the liabilities
N.B. correlate with concurrence and preference
o 6. Objections can be made within 10 days of meeting
What is suspension of payments?
A. Defects in call for meeting or the meeting itself

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B. Fraudulent connivance between one or some SAME RULE for dispositions within 30 days
creditors and the debtor to vote in favor of the before insolvency proceedings, unless there
agreement is value received in GF for the property
C. Fraudulent conveyance of claims to obtain a o 4. Liquidation of assets and payment of debts
majority o 5. Composition
o 7. Court issues order directing the agreement to be carried out Offer of terms of composition is made after filing of
What is the procedure for voluntary insolvency? schedule of liabilities and creditors
o 1. Debtor files petition that he is insolvent and cannot pay The offer must be accepted in writing by the same
debts in full, accompanied by: double majority of creditors
A. verified schedule of liabilities It is made after depositing the consideration to be
B. verified inventory of properties paid and the cost of proceedings
o 2. Court issues order of adjudication The court must approve the terms of composition
Publication and service of order to creditors o What is the effect?
Is hearing needed? The debtor is discharged from debts, except if
No, not in voluntary insolvency corporation
o 3. Meeting of all creditors to elect assignee of debtors property o What are available remedies?
Clerk of court conveys property to him Objection
What is the effect? Appeal to SC
The assignee gets legal title over the What is the procedure for involuntary insolvency?
property o 1. Three or more creditors file petition
What if someone has a mortgage over the When should they have been creditors?
property? More than 30 days prior to petition, to avoid
File a motion to be excluded from the fraudulent conveyance
insolvency proceedings because he will The creditors must be residents of the Philippines
pursue the mortgage lien o 2. Court issues order requiring debtor to show cause why he
What if there is an existing claim being filed in must not be declared insolvent
court? Debtor files MTD or answer
The case will only determine how much is o 3. Hearing of the case
due the creditor, but he has to join the other Issuance of order declaring debtor insolvent
creditors when he takes what is due him Then he will be required to submit schedule of assets
What attachments and judgments shall be set and liabilities
aside? Publication and service of order
Those levied or secured within 30 days o (N.B. procedure from this point is the same as voluntary
before insolvency proceeding (again, there is insolvency including commentaries)
badge of fraud) o 4. Meeting of all creditors to elect assignee of debtors property
Clerk of court conveys property to him
o 5. Liquidation of assets and payment of debts
o 6. Composition
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o What is the effect? (whichever secured secured
The debtor is discharged from debts, except if is higher) creditors obligations
corporation holding more approved
o What are available remedies? -and- than 50% of
secured -and-
Objection
The claims claims and
Appeal to SC are at least unsecured Creditors
more than creditors with at least
FRIA 60 days old holding 50% 75% of
or a creditor of unsecured unsecured
N.B. see how FRIA has modified the above rules has initiated claims obligations
What is the biggest change introduced by the FRIA? foreclosure approved
o There are new rules for out-of-court settlement of liabilities of proceedings
that makes -and-
debtors. Before, its purely contractual. Now there are rules
debtor
governing these. insolvent Approved by
How does the FRIA define an insolvent? creditors
o One who is unable to pay his liabilities as they fall due in the holding at
ordinary course of business or has liabilities greater than his least 85% of
assets total
liabilities
What are the three methods of rehabilitation of a corporation under
(secured
the FRIA? and
o 1. Court-supervised rehabilitation unsecured)
o 2. Pre-negotiated rehabilitation
o 3. Out-of-court restructuring agreements When is a petition for voluntary rehabilitation deemed to
commence?
Voluntary Involuntary Pre- Informal o Upon the court issuing a commencement order, indicating that
rehab rehab negotiated rehab
the petition is sufficient in form or substance
rehab
o Issued within 5 working days from filing of the petition
Petitioner Debtor Creditors Debtor who None
may be o What if the petition is deficient?
joined by Instead of dismissing it, the court may order the
any of his issuance of an amended/supplemental petition or the
creditors submission of additional documents
How to Corporations: Creditors Plan Debtor What does the commencement order do?
initiate majority of have approved by agreed o 1. Declare the debtor under rehab
BOD + 2/3 aggregate creditors
votes of SH claim of 1M+ with at least -and- o 2. Orders publication of order and notice to creditors
interest or at least 2/3 of o 3. Appoints a rehab receiver
25% of debtors Creditors General rule: Courts discretion
Partnerships: subscribed liabilities, with at least
majority capital stock including 67% of
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1. But if the debtor is a securities market participant, by these agencies to reimburse themselves for transactions
court prioritizes nominee of the appropriate securities settled for the debtor
or investment protection fund What is the difference of effect of the SO on secured and
2. If nominated by at least 50% of secured creditors unsecured claims?
and unsecured creditors, court must appoint him o It applies with equal force. The SO does not impair the
o 4. Sets date for initial hearing security or lien of a secured creditor, except that it suspends
Covers w/n the debtor can be rehabilitated the right to enforce the claim.
o 5. Directs creditors to file claims within 5 days from initial What are the other effects of commencement?
hearing o 1. The court can issue can order prohibiting suppliers from
o 6. Invites government through BIR to file a comment to the withholding essential goods and services from the debtor.
petition or file claims against the debtor This ensures the continuous delivery of goods and
When does the stay or suspension order (SO) issue? services necessary for the debtors business.
o In addition to the commencement order o 2. Waiver of all taxes from commencement order to approval of
What is the SO? the rehabilitation plan or its dismissal
o It prohibits sale and disposition of assets of the debtor and How long does the commencement order last?
orders suspension of all actions against him or his estate. o For as long as there is a substantial likelihood that the debtor
What are the actions not covered by the SO? will be successfully rehabilitated
o [SC or QJA] When can the court modify the terms of the SO or relieve from
o 1. Appeal already pending in the SC suspension a creditors claim?
Once there is FJ, directed to the rehab court o Either:
o 2. Subject to rehab courts discretion, actions pending in QJAs 1. A creditor does not have adequate protection over
Any FJ will be directed to court as a non-disputed the property securing his claim, or
claim Lack of adequate protection:
o [Nature of action] o A. Debtor fails to honor pre-existing
o 3. Claim against sureties and those solidarily liable with debtor, agreement with creditor to keep the
accommodation mortgagors, issuers of LOC property insured
o 4. Criminal actions o B. Debtors fails to take reasonable
o [Securities transactions] steps to preserve the property
o 5. Actions by customers of a securities market participant to o C. Property has depreciated to
recover those entrusted to the latter in the ordinary course of extent that creditor is under-
business or action by the securities market participant to pay secured
off these claims 2. The value of the claim exceeds the FMV of the
o 6. Actions by licensed broker or dealer to sell pledged property securing it
securities of the debtor (pursuant to pledge or margin o What can the court order?
agreement) 1. Additional securities or steps to preserve the
o 7. Clearing and settlement of financial transactions through property; or
facilities of SEC/BSP accredited clearing agency and actions 2. Allow creditor to enforce security claim on debtor

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For what purposes can the debtors property still be used? o 3. Rehab plan not supported by voting creditors
o 1. Ordinary course of business What is the period for confirmation of the plan?
o 2. Admin expenses during rehab proceedings o Within1 year, or else there will be automatic liquidation (to
o When is the debtor allowed to dispose of encumbered avoid delaying)
property?
When necessary for continuation of ordinary course of
business PRESCRIPTION
o What is new money?
Post-commencement-order loans or obligations
approved by court. These are considered admin What are the kinds of prescription?
expenses. o 1. Acquisitive
What is the rule on cancellation or confirmation of contracts? What are the requisites of acquisitive
o Within 90 days from the commencement order, the debtor may prescription?
elect to confirm or cancel contracts. This is to get out of 1. Capacity to acquire by prescription
onerous obligations. 2. Thing is capable of acquisition by
o Any contract not confirmed in 90 days is deemed cancelled. prescription
o What is the remedy of creditors with cancelled contracts? 3. Possession of the thing under certain
Can claim actual damages (if any), which will be conditions
considered a pre-commencement-order claim. 4. Lapse of required time under law
What are the powers of the rehab receiver? o 2. Extinctive or statute of limitations
o Annul pre-commencement transactions intended to defraud the Who may acquire by prescription?
creditors o 1. Person capable of acquiring property through other modes
o N.B. Creditors may file or commence it if receiver refuses the o 2. State
creditor benefits from such action to extent of his claim o 3. Minors through guardians or personally
Who approved the rehab plan drawn by the receiver? Against whom may prescription run?
o Just majority of each sub-class of creditors (as determined by o 1. Incapacitated person/minors with guardians
the plan) o 2. Absentees with administrators
o Unlike the old law, the debtor does not vote o 3. Persons abroad with administrators
o What if the creditors do not approve? o 4. Juridical persons except the state as to non-patrimonial
The court may still confirm the plan if its proven that property
the creditors would still receive a net present value When does prescription not run?
greater than what they would have received if the o 1. Between husband and wife even if there is CSP or JSP
debtor had been under liquidation o 2. Between parents and children, during minority/insanity
What are the only grounds by which the creditors can oppose a o 3. Between guardian and ward, during guardianship
plan if approved by court? Which are subject to prescription?
o 1. Creditors support induced by fraud o All things within the commerce of men private property and
o 2. Documents or data relief upon were false or misleading patrimonial property of State

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o What are not subject to prescription? o Reasonable belief by the person that he is the owner and could
1. Public domain validly transmit ownership
2. Intransmissible rights o Must exist through the entire period required for prescription
3. Movables possessed through crime What does just title mean as applicable to both ordinary and
4. Registered land extraordinary acquisitive prescription?
What is the rule on renunciation of prescription? o Titulo Colorado where there was a mode of transferring
o Person may renounce prescription already obtained, but not ownership but something is wrong because the grantor was
right to prescribe in the future not the owner
o How is renunciation done? Had the grantor been the owner, the mode would
Express or tacit. Tacit is when acts imply have transferred ownership
abandonment of the right acquired o How does this differ from mere titulo putativo?
o Who may impugn renunciation? Here, there was no mode of acquiring ownership,
Creditors and other persons interested in making although the person believes he has obtained title
prescription effective notwithstanding renunciation What is in concept of owner?
o X borrowed money from Y on November 29, 1933 as o It not out of mere tolerance of the owner, but is actually
evidenced by a PN. Y said that he waives prescription and adverse to the latter. It is a claim that the acquirer owns the
may still collect even after the 10 year period under law. X property.
failed to pay after repeated demands so Y sued him on What is public, peaceful, uninterrupted?
January 7, 1953. Can Y collect?