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SJV 2014 CIVIL LAW BAR Q&A 20082013


I. Effect and Application of Laws (Civil Even if the applicable law is a foreign law, a court
in the Philippines may be constrained to apply
Philippine law under any of the following instances,
Include: Conflict of Laws (Private International
A. when the foreign law, judgment or contract is
contrary to a sound and important public policy
Congress passed a law imposing taxes on income B. when the property subject of the case is
earned out of a particular activity that was not located outside of the Philippines;
previously taxed. The law, however, taxed incomes C. when the foreign law or judgment is penal in
already earned within the fiscal year when the law nature;
took effect. Is the law valid? D. when the foreign law is procedural in nature.
A. No, because laws are intended to be CONFLICT OF LAWS JURISDICTION (2010)
prospective, not retroactive. Give at least two reasons why a court may assume
B. No, the law is arbitrary in that it taxes income jurisdiction over a conflict of laws case.
that has already been spent.
C. Yes, since tax laws are the lifeblood of the SUGGESTED ANSWER:
nation. 1. Statute theory. There is a domestic law
D. Yes, tax laws are an exception; they can be authorizing the local court to assume jurisdiction.
given retroactive effect. 2. Comity theory. The local court assumes
jurisdiction based on the principle of comity or
The doctrine of stare decisis prescribes adherence
to precedents in order to promote the stability of ALTERNATIVE ANSWER:
the law. But the doctrine can be abandoned 1. Public Order. To maintain peace and order,
disputes that disturb the peace of the forum should
A. When adherence to it would result in the be settled by the courts of the forum even though
Governments loss of its case. the application of a foreign law is necessary for the
B. When the application of the doctrine would purpose.
cause great prejudice to a foreign national. 2. Humanitarian Principle. An aggrieved party
C. When necessary to promote the passage of a should not be left without remedy in a forum even
new law. though the application of a foreign law by the
D. When the precedent has ceased to be courts of the forum is unavoidable in order to
beneficial and useful. extend relief.


This attribute or incident of a case determines (2009)
whether it is a conflict-of-laws case or one covered The doctrine of "processual presumption" allows the
by domestic law. court of the forum to presume that the foreign law
applicable to the case is the same as the local or
A. Cause of action domestic law. True or False?
B. Foreign element
D. Forum non conveniens TRUE. If the foreign law necessary to resolve an issue
is not proven as a fact, the court of the forum may
CONFLICT OF LAWS (2012) presume that the foreign law is the same as the law
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of the forum. Japan in favor of Pedro. In case Pedro performs his

obligation, but Bill fails or refuses to pay, what law
An Australian living in the Philippines acquired
shares of stock worth P10 million in food A. American law
manufacturing companies. He died in Manila, B. Philippine law
leaving a legal wife and a child in Australia and a C. Australian law
live-in partner with whom he had two children in D. Japanese law
Manila. He also left a will, done according to
Philippine laws, leaving all his properties to his live-in CONFLICT OF LAWS SUCCESSION (2012)
partner and their children. What law will govern the Atty. BUKO, a Filipino, executed a will while he was
validity of the disposition in the will? in Spain. The attestation clause of the said will does
A. Australia law since his legal wife and legitimate not contain Buko's signature. It is valid under
child are Australians and domiciled in Australia. Spanish law. At its probate in Manila, it is being
B. Australian law since the intrinsic validity of the opposed on the ground that the attestation clause
provisions of a will is governed by the does not contain BUKO's signature. Is the opposition
decedents national law. correct? Choose the best answer.
C. Philippine law since the decedent died in
Manila and he executed his will according to A. Yes, because it is a fatal defect.
such law. B. Yes, the will is not valid under Philippine law.
D. Philippine law since the decedents properties C. No, attestation clause is not an act of the
are in the Philippines. testator.
D. No, the governing law is Spanish law.
The capacity of an heir to succeed shall be SUGGESTED ANSWER:
governed by the: C OR D

A. national law of the decedent's heirs [NOTE: The facts do not state the Law observed by the
B. law of the country where the decedent was a Testator in executing his will. He could have observed
resident at the time of his death Spanish Law or Philippine Law (see comment of Tolentino
to Article 815, NCC in 3Tolentino117, 1992). If he observed
C. national law of the person who died
Spanish Law, the opposition is still not correct because
D. law of the country where the properties of the Philippine law does not require the Testator to sign the
decedent are located. Attestation Clause of his will, said clause not being his act.
In such case, choice (c) is the correct answer.]
If a will is executed by a testator who was born a CONFLICT OF LAWS SUCCESSION (2012)
Filipino citizen but became a naturalized Japanese Pedro (Filipino) and his wife Jane (American)
citizen at the time of his death, what law will govern executed a joint will in Canada, where such joint
its testamentary provisions if the will is executed in will is valid. In case the joint will is probated in
China and the property being disposed is located Japan, what law will govern the formalities of the
in Indonesia? joint will?

A. Chinese law A. American law

B. Philippine law B. Philippine law
C. Indonesian law C. Canadian law
D. Japanese law D. Japanese law


Pedro (Filipino) and Bill (American) entered into a A French national revokes his will in Japan where he
contract in Australia, whereby it was agreed that is domiciled. He then changed his domicile to the
Pedro will build a commercial building for Bill in the Philippines where he died. The revocation of his will
Philippines, and in payment for the construction, Bill in Japan is valid under Japanese law but invalid
will transfer and convey his cattle ranch located in
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under Philippine law. The affected heir is a Margarita invokes in support of sterility as such
Malaysian national residing in the Philippines. What ground; but should be the U.S. law. Hence, the
law will apply? Philippine court will not give due course to the case
based on Kenyan law. The nationality principle as
A. Japanese law expressed in the application of national law of
B. Philippine law foreign nationals by Philippine courts is established
C. French law by precedents. (Pilapil v. Ibay-Somera, 174 SCRA
D. Malaysian law 653 [1989], Garcia v Recio, 366 SCRA 437 [2001],
Llorente v Court of Appeals 345 SCRA 92 [2000],
CONFLICT OF LAWS CONTRACTS (2012) and Bayot v Court of Appeals 570 SCRA 472 [2008]).
A Japanese national and a Filipino national
entered into a contract for services in Thailand. The ANOTHER SUGGESTED ANSWER:
services will be rendered in Singapore. In case of The forum has jurisdiction over an action for the
breach, what law will govern? annulment of marriage solemnized elsewhere but
only when the party bringing the action is domiciled
A. Thailand law in the forum. In this case, none of the parties to the
B. Philippine law marriage is domiciled in the Philippines. They are
C. Singapore law here as officials of the US Embassy whose stay in the
D. Japanese law country is merely temporary, lasting only during their
fixed tour of duty. Hence, the Philippine courts have
CONFLICT OF LAWS MARRIAGE (2012) no jurisdiction over the action.
In the absence of contrary stipulation in a marriage
settlement, property relations of Filipino spouses b. Assume Emmanuel and Margarita are both
shall be governed by --- Filipinos. After their wedding in Kenya, they come
back and take up residence in the Philippines. Can
A. Philippine laws their marriage be annulled on the ground of
B. Law of the place where the spouses reside Emmanuels sterility? Explain. (3%)
C. Law of the place where the properties are
D. Law of the place where they were married. No, the marriage cannot be annulled under
Philippine law. Sterility is not a ground for annulment
CONFLICTS OF LAW ANNULMENT (2009) of marriage under Article 45 of the Family Code.
Emmanuel and Margarita, American citizens and
employees of the U.S. State Department, got ANOTHER SUGGESTED ANSWER:
married in the Africa state of Kenya where sterility is No, the marriage cannot be annulled in the
a ground for annulment of marriage. Thereafter,the Philippines. The Philippine court shall have
spouses were arraigned to the U.S. Embassy in jurisdiction over the action to annul the marriage
Manila. On the first year of the spouses tour of duty not only because the parties are residents of the
in the Philippines, Margarita filed an annulment Philippines but because they are Filipino citizens.
case against Emmanuel before a Philippine court The Philippine court, however, shall apply the law of
on ground of her husbands sterility at the time of the place where the marriage was celebrated in
the celebration of the marriage. determining its formal validity (Article 26, FC; Article
17, NCC).
a. Will the suit prosper? Explain your answer (3%)
Since the marriage was celebrated in Kenya in
SUGGESTED ANSWER: accordance with Kenyan law, the formal validity of
No, the suit will not prosper. As applied to foreign such marriage is governed by Kenyan law and any
nationals with respect to family relations and status issue as to the formal validity of that marriage shall
of persons, the nationality principle set forth in be determined by applying Kenyan law and not
Article 15 of the Civil Code will govern the relations Philippine law.
of Emmanuel and Margarita. Since they are
American citizens, the governing law as to the However, while Kenyan law governs the formal
ground for annulment is not Kenyan law which validity of marriage, the legal capacity of the
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Filipino parties to the marriage is governed not by before a Philippine court, what law shall apply?
Kenyan law but by Philippine law (Article 15, NCC). Explain. (2%)
Sterility of a party as a ground for the annulment of
marriage is not a matter of form but a matter of SUGGESTED ANSWER:
legal capacity. Hence, the Philippine court must Philippine law will apply. The petition for change of
apply Philippine law in determining the status of the name in the Philippines will affect only the records
marriage on the ground of absence or defect in of the petitioner and his transactions in the
the legal capacity of the Filipino parties. Since Philippines. The Philippine court can never acquire
sterility foes not constitute absence or defect in the jurisdiction over the custodian in the US of the
legal capacity of the parties under Philippine law, records of the petitioner. Moreover, change of
there is no ground to avoid or annul the marriage. name has nothing to do with the legal capacity or
Hence, the Philippine court has to deny the status of the alien. Since Philippine records and
petition. transactions are the only ones affected, the
Philippine court may effect the change only in
CONFLICT OF LAWS CHANGE OF NAME (2009) accordance with eh laws governing those records
If Ligaya, a Filipino citizen residing in the United and transactions. That law cannot be but Philippine
States, files a petition for change of name before law.
the District Court of New York, what law shall apply?
U.S. law shall apply as it is his national law. This is
SUGGESTED ANSWER: pursuant to the application of lex patriae or the
New York law shall apply. the petition for change of nationality principle, by which his legal status is
name filed in New York does not concern the legal governed by national law, the matter of change of
capacity or status of the petitioner. Moreover, it name being included in legal status. The Supreme
does not affect the Registry of any other country Court has reiterated in several cases, that the lex
including the country of birth of the petitioner. patriae as provided in Article 15 of the Civil Code is
Whatever judgment is rendered in that petition will applicable to foreign nationals in determining their
have effect only in New York. The New York court legal status (supra).
cannot, for instance, order the Civil Registrar in the
Philippines to change its records. The judgment of II. Human Relations (Arts. 19-22, Civil
the New York allowing a change in the name of the Code)
petitioner will be limited to the records of the
petitioner in New York. Since the records and Exclude: Independent civil actions and
processed in New York are the only ones affected, prejudicial questions which will be covered by
the New York Court will apply New York law in the examinations in Remedial Law
resolving the petition.

Philippine law shall apply (Art. 15, NCC). Status,
conditions, family rights and duties are governed by
Philippine laws as to Filipinos even though I. Persons and Personality (Civil Code)
sojourning abroad.
ANOTHER ALTERNATIVE ANSWER: Birth determines personality. Death extinguishes it.
If Ligaya, a Filipino, files a petition for change of Under what circumstances may the personality of a
name with the District Court of New York, the laws deceased person continue to exist?
of New York will govern since change of name is A. In case of re-appearance of a missing person
not one of those covered by the principles of presumed dead.
nationality. B. In protecting the works of a deceased under
intellectual property laws.
CONFLICT OF LAWS CHANGE OF NAME (2009) C. In case of declaration of presumptive death of
If Henry, an American citizen residing in the a missing spouse.
Philippines, files a petition for change of name D. In the settlement of the estate of a deceased
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person. of its complete delivery from the mothers womb.

We can gather from the facts that the baby was
PERSONALITY (2011) completely delivered. But whether or not it was
Because of Xs gross negligence, Y suffered injuries alive has to be proven by evidence.
that resulted in the abortion of the foetus she
carried. Y sued X for, among other damages, P1 If the baby was alive when completely delivered
million for the death of a family member. Is Y from the mothers womb, then it was born as a
entitled to indemnity for the death of the foetus she person and the question of who survived as
carried? between the baby and the mother shall be
A. Yes, since the foetus is already regarded as a resolved by the provisions of the Rules of Court on
child from conception, though unborn. survivorship. This is because the question has
B. No, since Xs would not have known that the nothing to do with succession. Obviously, the
accident would result in Ys abortion. resolution of the question is needed just for the
C. No, since birth determines personality, the implementation of an insurance contract. Under
accident did not result in the death of a person. Rule 13, Sec. 3, (jj), (5) as between the baby who
D. Yes, since the mother believed in her heart was under 15 years old and Marian who was 18
that she lost a child. years old, Marian is presumed to have survived.

PERSONALITY (2008) In both cases, therefore, the baby never acquired

At age 18, Marian found out that she was pregnant. any right under the insurance policy. The proceeds
She insured her own life and named her unborn of the insurance will then go to the estate of
child as her sole beneficiary. When she was already Marian.
due to give birth, she and her boyfriend Pietro, the
father of her unborn child, were kidnapped in a c. Will Pietro, as surviving biological father of the
resort in Bataan where they were vacationing. The baby, be entitled to claim the proceeds of the life
military gave chase and after one week, they were insurance on the life of Marian? (2%)
found in an abandoned hut in Cavite. Marian and
Pietro were hacked with bolos. Marian and the SUGGESTED ANSWER:
baby delivered were both found dead, with the Since the baby did not acquire any right under the
baby's umbilical cord already cut. Pietro survived. insurance contract, there is nothing for Pietro to
a. Can Marian's baby be the beneficiary of the
insurance taken on the life of the mother? (2%) JURIDICAL CAPACITY (2012)
Which of the following is NOT included in the
SUGGESTED ANSWER: attributes of juridical capacity?
An unborn child may be designated as the
beneficiary in the insurance policy of the mother. A. Juridical capacity is inherent in every natural
An unborn child shall be considered a person for person, and therefore it is not acquired.
purposes favourable to it provided it is born later in B. Juridical capacity is lost only through death.
accordance with the Civil Code. There is no doubt C. Juridical. capacity is the fitness to be the
that the designation of the unborn child as a subject of legal relations.
beneficiary is favorable to the child. D. Juridical capacity cannot exist without
capacity to act.
b. Between Marian and the baby, who is presumed
to have died ahead? (1%) CAPACITY TO ACT (2012)
Which of the following is NOT a restriction on one's
SUGGESTED ANSWER: capacity to act?
If the baby was not alive when completely
delivered from the mothers womb, it was not born A. Minority
as a person, then the question of who between two B. Marriage
persons survived will not be an issue. Since the baby C. Deaf-mute
had an intra-uterine life of more than 7 months, it D. Civil Interdiction
would be considered born if it was alive, at the time
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SUGGESTED ANSWER: and Annulment of Voidable Marriages; R.A. No.

This question should be disregarded 6955, entitled An Act to Declare Unlawful the
Practice of Matching Filipino Women for
[NOTE: There is no correct answer among the choices Marriage to Foreign Nationals on a Mail Order
given. All the choices are restrictions on ones capacity to Basis and Other Similar Practices x x x; R.A. No.
act. While marriage is the only one not mentioned in 9208 or the Anti-Trafficking in Persons Act of 2003
Articles 38 and 39 of the NCC as a restriction on capacity
to act, it restricts the capacity of a married person in MARRIAGE REQUISITES (2011)
cases of adoption.] QR and TS who had a marriage license requested a
newly appointed Judge in Manila to marry them on
RIGHTS EXTINGUISHED BY DEATH (2012) the beach of Boracay. Since the Judge maintained
The following rights are extinguished by death, Boracay as his residence, he agreed. The sponsors
except: were all public officials. What is the status of the
a) Legal support A. Valid, since the improper venue is merely an
b) Parental authority irregularity; all the elements of a valid marriage
c) Right to inherit are present.
d) Agency B. Void, because the couple did not get local
permit for a beach wedding.
C. Voidable, because the Judge acted beyond
DECLARATION OF ABSENCE (2011) his territorial jurisdiction and is administratively
When does a declaration of absence of a missing liable for the same.
person take effect? D. Void, because the Judge did not solemnize the
A. Immediately from the issuance of the marriage within the premises of his court.
declaration of absence.
B. 3 months after the publication of the MARRIAGE REQUISITES (2011)
declaration of absence. Conrad and Linda, both 20 years old, applied for a
C. 6 months after the publication of the marriage license, making it appear that they were
declaration of absence. over 25. They married without their parents
D. 15 days from the issuance of the declaration of knowledge before an unsuspecting judge. After the
absence. couple has been in cohabitation for 6 years, Lindas
parents filed an action to annul the marriage on
DECLARATION OF ABSENCE (2011) ground of lack of parental consent. Will the case
When can a missing person who left someone to prosper?
administer his property be declared an absentee A. No, since only the couple can question the
by the court? When he has been missing for validity of their marriage after they became 21
A. 2 years from the receipt of the last news about of age; their cohabitation also convalidated
him. the marriage.
B. 7 years from the receipt of the last news about B. No, since Lindas parents made no allegations
him. that earnest efforts have been made to come
C. 10 years from the receipt of the last news about to a compromise with Conrad and Linda and
him. which efforts failed.
D. 5 years from the receipt of the last news about C. Yes, since the marriage is voidable, the couple
him. being below 21 years of age when they
II. Marriage (Family Code) D. Yes, since Lindas parents never gave their
consent to the marriage.
Exclude: Muslim Code (P.D. 1083)
Exclude: Duties of a Civil Registrar under Articles Lito was a commercial pilot who flew for Pacific-
12-19, 23-25 (Family Code) Micronesian Air. In 1998, he was the co-pilot of the
airline's Flight MA916 that mysteriously disappeared
Exclude: A.M. No. 02-11-10-SC, Rule on
two hours after take-off from Agana, Guam,
Declaration of Absolute Nullity of Void Marriages
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presumably over the Pacific Ocean. No trace of however lengthy, insufficient to authorize Lita to
the plane and its 105 passengers and crew waas contract a subsequent marriage.
ever found despite diligent search; Lito himself was D. The marriage is void. If Lito is indeed alive, his
never heard of again. Lito left behind his wife, Lita, marriage to Lita was never dissolved and they
and their two children. can resume their marital relations at any time.

In 2008, Lita met and married Jaime. They now Any answer is correct.
have a child of their own.
Under Article 390 of the Civil Code, after an
While on a tour with her former high school absence of seven years, it being unknown whether
classmates in a remote province of China in 2010, or not the absentee still lives, he shall be presumed
Lita was surprised to see Lito or somebody who dead for all purposes, except for those of
looked exactly like him, but she was sure it was Lito succession. This provision was not repealed by the
because of the extreme surprise that registered in present Family Code. Applying this to the problem,
his face when he also saw her. Shocked, she (A) may be correct. (B) may also be correct. (C)
immediately fled to her hotel and post haste and (D) may also be correct under Article 41 of the
returned to the country the next day. Lita now Family Code.
comes to you for legal advice. She asks you the
following questions: PROHIBITION (2008)
Despite several relationships with different women,
a. If Lito is alive, what is the status of his marriage to Andrew remained unmarried. His first relationship
Lita? with Brenda produced a daughter, Amy, now 30
years old. His second, with Carla, produced two
A. The marriage subsists because the marital bond sons: Jon and Ryan. His third, with Donna, bore him
has not been terminated by death. no children although Elena has a daughter Jane,
B. The marriage was terminated when Lita married from a previous relationship. Can Jon and Jane
Jaime. legally marry? (1%)
C. The marriage subsists because Litas marriage to
Jaime is void. SUGGESTED ANSWER:
D. The marriage is terminated because Lito is Jon and Jane can legally marry because they are
presumed dead after his plane has been not related to each other. Jane is not a daughter of
missing for more than 4 years. Andrew.
D. The marriage can be formally declared
terminated if Lito would not resurface. PROHIBITION (2012)
Which of the following marriages is void for reasons
For the purpose of contracting the subsequent of public policy?
marriage under Article 41 of the Family Code, the
spouse present must institute a summary A. Between brothers and sisters, whether of the full
proceeding as provided in the Family Code for the or half blood.
declaration of presumptive death of the absentee, B. Between step-parents and step children.
without prejudice to the effect of reappearance of C. Between. parents-in-law and children-in-law.
the absent spouse. D. B and C

b. If Lito is alive, what is the status of Litas marriage DIVORCE (2010)

to Jaime? True or False: Under Article 26 of the Family Code,
when a foreign spouse divorces his/her Filipino
A. The marriage is valid because Lita's marriage to spouse, the latter may re-marry by proving only that
Lito was terminated upon Lito's disappearance the foreign spouse has obtained a divorce against
for more than seven years. her or him abroad. (1%)
B. The marriage is valid. After an absence of more
than 10 years, Lito is already presumed dead for SUGGESTED ANSWER:
all purposes FALSE. In Garcia v Recio, 366 SCRA 437 (2001), the
C. The marriage is void. Lito's mere absence, SC held that for a Filipino spouse to have capacity
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to contract a subsequent marriage, it must also be C. The children born before and after the divorce
proven that the foreign divorce obtained by the are all legitimate since Philippine law does not
foreigner spouse gives such foreigner spouse recognize divorce.
capacity to remarry. D. All the children are legitimate since they were
born of the same father and mother.
TRUE. Art 26 (2) (FC), clearly provides that the EFFECTS OF DIVORCE (2009)
decree of divorce obtained abroad by the Harry married Wilma, a very wealthy woman. Barely
foreigner spouse is sufficient to capacitate the five (5) years into the marriage, Wilma fell in love
Filipino spouse to remarry. with Joseph. Thus, Wilma went to a small country in
Europe, became a naturalized citizen of that
DIVORCE (2012) country, divorced Harry, and married Joseph. A
Cipriano and Lady Miros married each other. Lady year thereafter, Wilma and Joseph returned and
Miros then left for the US and there, she obtained established permanent residence in the Philippines.
American citizenship. Cipriano later learned all
about this including the fact that Lady Miros had a. Is the divorce obtained by Wilma from Harry
divorced him in America and that she had recognized in the Philippines? Explain your answer.
remarried there. He then filed a petition for (3%)
authority to remarry, invoking Par. 2, Art. 26 of the
Family Code. Is Cipriano capacitated to re-marry SUGGESTED ANSWER:
by virtue of the divorce decree obtained by his As to Wilma, the divorce obtained by her is
Filipino spouse who was later naturalized as an recognized as valid in the Philippines because she is
American citizen? Explain. (5%) now a foreigner. Philippine personal laws do not
apply to a foreigner. However, recognition of the
SUGGESTED ANSWER: divorce as regards Harry will depend on the
YES. He is capacitated to re-marry. While the applicability to his case of the second paragraph of
second paragraph of Article 26 of the Family Code Article 26 of the Family Code. If it is applicable,
is applicable only to a Filipino who married a divorce is recognized as to him and therefore he
foreigner at the time of the marriage, the Supreme can remarry. However, if it is not applicable,
Court ruled in the case of Republic v. Obrecido, divorce is not recognized as to him and,
G.R. No. 154380, October 5, 2005, that the said consequently, he cannot remarry.
provision equally applies to a Filipino who married
another Filipino, at the time of marriage, but who ANOTHER SUGGESTED ANSWER:
was already a foreigner when the divorce was Yes, the divorce obtained by Wilma is recognized
obtained. as valid in the Philippines. At the time she got the
divorce, she was already a foreign national having
EFFECTS OF DIVORCE (2011) been naturalized as a citizen of that "small country
Arthur and Helen, both Filipinos, got married and in Europe." Based on precedents established by the
had 2 children. Arthur later worked in Rome where Supreme Court [Bayot v CA, 570 SCRA 472 [2008]),
he acquired Italian citizenship. He got a divorce divorce obtained by a foreigner is recognized in the
from Helen in Rome but, on returning to the Philippines if validly obtained in accordance with
Philippines, he realized his mistake, asked his or her national law.
forgiveness of his wife, and resumed living with her.
They had 2 more children. What is the status of their b. If Harry hires you as his lawyer, what legal
4 children? recourse would you advise him to take? Why? (2%)

A. The children born before the divorce are SUGGESTED ANSWER:

legitimate but those born after it are not since I will advice Harry to:
Arthur got the divorce when he had ceased to (1) dissolve and liquidate his property relations with
be a Filipino. Wilma; and
B. The divorce rendered illegitimate the children (2) if he will remarry, file a petition for the
born before it since the marriage that begot recognition and enforcement of the foreign
them had been nullified. judgment of divorce (Rule 39, Rules of Court).
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c. Harry tells you that he has fallen in love with DECLARATION OF NULLITY OF MARRIAGE WHO
another woman, Elizabeth, and wants to marry her CAN FILE (2012)
because, after all, Wilma is already married to A petition for declaration of nullity of a void
Joseph. Can Harry legally marry Elizabeth? Explain. marriage can only be filed by either the husband or
(2%) the wife. Do you agree? Explain your answer. (5%)


Yes, he can validly remarry Elizabeth, applying the YES, I agree. Under the Rules promulgated by the
doctrine laid down by the Supreme Court in Supreme Court, a direct action for declaration of
Republic v. Obrecido [427 SCRA 114 [2005]. nullity may only be filed by any of the spouses.

Under the second paragraph of Article 26 of the ALTERNATIVE ANSWER:

Family Code, for the Filipino spouse to have NO, I do not agree. There are others who may file a
capacity to remarry, the law expressly requires the petition for declaration of nullity such as the other
spouse who obtained divorce to be a foreigner at spouse in bigamous marriages.
the time of the marriage. Applying this requirement
to the case of Harry, it would seem that he is not ANNULMENT WHO MAY FILE (2011)
given the capacity to remarry. This is because Josie, 18, married Dante, 25, without her parents
Wilma was a Filipino at the time of her marriage to knowledge and consent, and lived with him. After a
Harry. year, Josie returned to her parents home,
complained of the unbearable battering she was
In Republic v. Orbecido, however, the Supreme getting from Dante, and expressed a desire to have
Court ruled that a Filipino spouse is given the her marriage with him annulled. Who may bring the
capacity to remarry even though the spouse who action?
obtained the divorce was a Filipino at the time of
the marriage, if the latter was already a foreigner A. Dante.
when the divorce was obtained abroad. According B. Her parents.
to the Court, to rule otherwise will violate the equal C. Josie herself.
protection clause of the Constitution. D. The State.


Joseph, a 17-year old Filipino, married Jenny, a 21- Rene and Lily got married after a brief courtship.
year old American in Illinois, USA, where the After one month, Lily discovered that while Rene
marriage was valid. Their parents gave full consent presented himself as a macho man he was actually
to the marriage of their children. After three years, gay. He would not go to bed with her. He kept
Joseph filed a petition in the USA to promptly obscene magazines of nude men and always
divorce Jenny and this was granted. When Joseph sought the company of handsome boys. What
turned 25 years, he returned to the Philippines and legal remedy does Lily have?
married Leonora. What is the status of this second
marriage? A. She can file an action for annulment of
marriage on ground of fraud.
A. Void, because he did not cause the judicial B. She can seek a declaration of nullity of the
issuance of declaration of the nullity of his first marriage based on Renes psychological
marriage to Jenny before marrying Leonora. incapacity.
B. Valid, because Joseph's marriage to Jenny is C. She can go abroad and file for divorce in a
void, he being only 17 years of age when he country that can grant it.
married her. D. She has none since she had the opportunity to
C. Valid, because his marriage to Leonora has all examine the goods and freely entered into the
the elements of a valid marriage. marriage.
D. Void, because Joseph is still considered married
to Jenny since the Philippines does not ANNULMENT GROUNDS (2011)
recognize divorce.
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Manuel came to Manila and married Marianne. as to whether or not the respondent is
Unknown to Marianne, Manuel had been previously psychologically incapacitated.
convicted in Palawan of theft and served time for
it. After Marianne learned of his previous conviction, Since the psychologist did not personally examine
she stopped living with him. Can Marianne seek the the respondent, and his report is based solely on
annulment of the marriage based on Manuels non- the story of petitioner who has an interest in the
disclosure of his previous crime? outcome of the petition, the marriage cannot be
annulled on the ground of respondents
A. No, since the assumption is that marriage psychological incapacity if the said report is the
forgives all past wrongs. only evidence of respondents psychological
B. Yes, since the non-disclosure of that crime is the incapacity.
equivalent of fraud, which is a ground for
C. No, in case of doubt, the law must be construed You are a Family Court judge and before you is a
to preserve the institution of marriage. Petition for the Declaration of Nullity of Marriage
D. No, since Manuel already served the penalty for (under Article 36 of the Family Code) filed by Maria
his crime. against Neil. Maria claims that Neil is
psychologically incapacitated to comply with the
ANNULMENT GROUNDS (2012) essential obligations of marriage because Neil is a
The following constitute the different circumstances drunkard, a womanizer, a gambler, and a mama's
or cases of fraud which will serve as ground for the boy traits that she never knew or saw when Neil
annulment of a marriage, except? was courting her. Although summoned, Neil did not
answer Maria's petition and never appeared in
A. Non-disclosure of the previous conviction by court.
final judgment of the other party of a crime
involving moral turpitude. To support her petition, Maria presented three
B. Concealment of a sexually-transmissible witnesses - herself, Dr. Elsie Chan, and Ambrosia. Dr.
disease, regardless of its nature, existing at the Chan testified on the psychological report on Neil
time of the marriage. that she prepared. Since Neil never acknowledged
C. Concealment of drug addiction, habitual nor responded to her invitation for interviews, her
alcoholism, homosexuality or lesbianism existing report is solely based on her interviews with Maria
at the time of marnage. and the spouses minor children. Dr. Chan
D. Concealment by the wife or the husband of the concluded that Neil is suffering from Narcissistic
fact of sexual relations prior to the marriage. Personality Disorder, an ailment that she found to
be already present since Nell's early adulthood and
ANNULMENT PSYCHOLOGICAL INCAPACITY (2012) one that is grave and incurable. Maria testified on
The petitioner filed a petition for declaration of the specific instances when she found Neil drunk,
nullity of marriage based allegedly on the with another woman, or squandering the family's
psychological incapacity of the respondent, but resources in a casino. Ambrosia, the spouses
the psychologist was not able to personally current household help, corroborated Maria's
examine the respondent and the psychological testimony.
report was based only on the narration of
petitioner. Should the annulment be granted? On the basis of the evidence presented, will you
Explain. (5%) grant the petition? (8%)


The annulment cannot be granted solely on the NO. The petition should be denied. The
basis of the psychological report. For the report to psychological incapacity under Article 36 of the
prove the psychological incapacity of the Family Code must be characterized by (a) gravity,
respondent, it is required that the psychologist (b) juridical antecedence, and (c) incurability. It is
should personally examine the respondent and the not enough to prove that the parties failed to meet
psychological report should be based on the their responsibilities and duties as married persons; it
psychologists independent assessment of the facts is essential that they must be shown to be
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incapable of doing so, due to some psychological X insured himself for P5 million, designating Y, his
(not physical) illness (Republic v. CA and Molina, wife, as his sole beneficiary. The designation was
G.R. No. 108763 February 13, 1997). irrevocable. A few years later, X had their marriage
annulled in court on the ground that Y had an
In this case, the pieces of evidence presented are existing prior marriage. X subsequently died, Is Y
not sufficient to conclude that indeed Neil is entitled to the insurance benefits?
suffering from a psychological incapacity A. Yes, since the insurance was not dependent on
(Narcissistic Personality Disorder) existing already the marriage.
before the marriage, incurable and serious enough B. Yes, since her designation as beneficiary was
to prevent Neil from performing his essential marital irrevocable.
obligations. C. No, Xs designation of Y is revoked by operation
of law upon the annulment of their marriage
Dr. Chan Chan's report contains mere conclusions. based on Ys fault.
Being a drunkard, a womanizer, a gambler and a D. Yes, since without judicial revocation, Xs
mama's boy merely shows Neil's failure to perform designation of Y remains valid and binding.
his marital obligations. In a number of cases, the
Supreme Court did not find the existence of MARRIAGE INTIMIDATION (2011)
psychological incapacity in cases where the Baldo, a rejected suitor, intimidated Judy into
respondents showed habitual drunkenness marrying him. While she wanted to question the
(Republic v. Melgar, G.R. No. 139676 [2006]), validity of their marriage two years after the
blatant display of infidelity and irresponsibility intimidation ceased, Judy decided in the
(Dedel v. CA, [2004]), or being hooked to gambling meantime to freely cohabit with Baldo. After more
and drugs (Republic v. Tanyag-San Jose, G.R. No. than 5 years following their wedding, Judy wants to
168328, [2007]), file a case for annulment of marriage against Baldo
on ground of lack of consent. Will her action
YES. The petition should be granted. The personal
medical or psychological examination of A. Yes, the action for annulment is imprescriptible.
respondent is not a requirement for a declaration of B. No, since the marriage was merely voidable
psychological incapacity. It is the totality of the and Judy ratified it by freely cohabiting with
evidence presented which shall determine the Baldo after the force and intimidation had
existence of psychological incapacity (Marcos v. ceased .
Marcos, G.R. No. 136490, October 19, 2000). Dr. C. No, since the action prescribed 5 years from the
Chan's report, corroborated by Maria's and date of the celebration of the marriage.
Ambrosia's testimony, therefore, sufficiently proves D. Yes, because the marriage was celebrated
Neil's psychological incapacity to assume his without Judy's consent freely given.
marital obligations.
ANNULMENT EFFECT (2011) Ricky and Princess were sweethearts. Princess
X and Y, although not suffering from any became pregnant. Knowing that Ricky is preparing
impediment, cohabited as husband and wife for the bar examinations, Marforth, a lawyer and
without the benefit of marriage. Following the birth cousin of Princess, threatened Ricky with the filing of
of their child, the couple got married. A year after, a complaint for immorality in the Supreme Court,
however, the court annulled the marriage and thus preventing him from taking the examinations
issued a decree of annulment. What is the present unless he marries Princess. As a consequence of the
status of the child? threat, Ricky married Princess. Can the marriage be
annulled on the ground of intimidation under Article
A. Legitimated. 45 of the Family Code? Choose the best answer.
B. Illegitimate.
C. Natural child. A. Yes, because without the threat, Ricky would
D. Legitimate. not have married Princess.
B. Yes, because the threat to enforce the claim of
ANNULMENT EFFECT (2011) Princess vitiates the consent of Ricky in
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contracting the marriage. is not recognized as a valuable contribution for the

C. No, because the threat made by Marforth is just acquisition of a property. In the Article 147 special
and legal. co-ownership, however, care and maintenance is
D. No, because. Marforth is not a party to the recognized as a valuable contribution which will
contract of marriage between Princess and entitle the contributor to half of the property
Ricky. acquired.

MARRIAGE VOID (2012) Having been acquired during their cohabitation,

A marriage is void if: the residential lot is presumed acquired through
A. solemnized with a marriage license issued their joint work and industry under Article 147,
without complying with the required 10-day hence, B and G are co-owners of the said property
posting. in equal shares.
B. solemnized by a minister whom the parties
believe to have the authority. Article 147 also provides that when a party to the
C. between parties both 23 years of age but void marriage was in bad faith, he forfeits his share
without parental advice. in the co-ownership in favor of the common
D. none of the above children or descendants. In default of children or
descendants, the forfeited share shall belong to the
MARRIAGE EFFECT IF VOID (2010) innocent party. In the foregoing problem, there is
In 1997, B and G started living together without the no showing that one party was in bad faith. Hence,
benefit of marriage. The relationship produced one both shall be presumed in good faith and no
offspring, Venus. The couple acquired a residential forfeiture shall take place.
lot in Paraaque. After four (4) years or in 2001, G
having completed her 4-year college degree as a b. Is Venus legitimate, illegitimate, or legitimated?
fulltime student, she and B contracted marriage Explain briefly. (3%)
without a license. The marriage of B and G was, two
years later, declared null and void due to the SUGGESTED ANSWER:
absence of a marriage license. Venus is illegitimate. She was conceived and born
outside a valid marriage. Thus she is considered
a. If you were the judge who declared the nullity of illegitimate (Article 165, Family Code). While Venus
the marriage, to whom would you award the lot? was legitimated by the subsequent marriage of her
Explain briefly. (3%) parents, such legitimation was rendered ineffective
when the said marriage was later on declared null
SUGGESTED ANSWER: and void due to absence of a marriage license.
Since the marriage was null and void, no Absolute
Community or Conjugal Partnership was established Under Article 178 of the Family Code, legitimation
between B and G. Their properties are governed by shall take place by a subsequent valid marriage
the special co-ownership provision of Article 147 between parents. The annulment of a voidable
of the Family Code because both B and G were marriage shall not affect the legitimation. The
capacitated to marry each other. The said Article inclusion of the underscored portion in the Article
provides that when a man and a woman who are necessarily implies that the Articles application is
capacitated to marry each other, live exclusively limited to voidable marriages. It follows that when
with each other as husband and wife without the the subsequent marriage is null and void, the
benefit of marriage, or under a void marriage; (1) legitimation must also be null and void. In the
their wages and salaries shall be owned by them in present problem, the marriage between B and G
equal shares; and (2) property acquired by both of was not voidable but void. Hence, Venus has
them through their work or industry shall be remained an illegitimate child.
governed by the rules on co-ownership. In co-
ownership, the parties are co-owners if they MARRIAGE VALIDITY, EFFECTS (2009)
contributed something of value in the acquisition of In December 2000, Michael and Anna, after
the property. Their share is in proportion to their obtaining a valid marriage license, went to the
respective contributions. In an ordinary co- Office of the Mayor of Urbano, Bulacan, to get
ownership the care and maintenance of the family married. The Mayor was not there, but the Mayors
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secretary asked Michael and Anna and their died, Ana married Adolf Cruz Staedtler, a divorced
witnesses to fill up and sign the required marriage German national born of a German father and a
contract forms. The secretary then told them to Filipino mother residing in Stuttgart. To avoid being
wait, and went out to look for the Mayor who was reqiured to submit the required certificate of
attending a wedding in a neighboring municipality. capacity to marry from the German Embassy in
When the secretary caught up with the Mayor at Manila, Adolf stated in the application for marriage
the wedding reception, she showed him the license that he was a Filipino citizen. With the
marriage contract forms and told him that the marriage license stating that Adolf was a Filipino,
couple and their witnesses were waiting in his the couple got married in a ceremony officiated by
office. The Mayor forthwith signed all the copies of the Parish Priest of Calamba, Laguna in a beach in
the marriage contract, gave them to the secretary Nasugbu, Batangas, as the local parish priest
who returned to the Mayors office. She then gave refused to solemnize marriages except in his
copies of the marriage contract to the parties, and church. Is the marriage valid? Explain fully. (5%)
told Michael and Anna that they were already
married. Thereafter, the couple lived together as SUGGESTED ANSWER:
husband and wife, and had three sons. The issue hinges on whether or not the missing
husband was dead or alive at the time of the
a. Is the marriage of Michael and Anna valid, second marriage.
voidable, or void? Explain your answer. (3%)
If the missing husband was in fact dead at the time
SUGGESTED ANSWER: the second marriage was celebrated, the second
The marriage is void because the formal requisite of marriage was valid. Actual death of a spouse
marriage ceremony was absent (Art. 3, F.C. 209, dissolves the marriage ipso facto whether or not the
Family Code). surviving spouse had knowledge of such fact. A
declaration of presumptive death even if obtained
ALTERNATIVE ANSWER: will not make the marriage voidable because
The marriage is void because an essential requisite presumptive death will not prevail over the fact of
was absent: consent of the parties freely given in death.
the presence of solemnizing officer (Art. 2, FC).
If the missing husband was in fact alive when the
b. What is the status of the three children of Michael second marriage was celebrated, the second
and Anna? Explain your answer. (2%) marriage was void ab initio because of a prior
subsisting marriage. Had Ana obtained a
SUGGESTED ANSWER: declaration of presumptive death, the second
The children are illegitimate, having been born marriage would have been voidable.
outside a valid marriage.
In both cases, the fact that the German
c. What property regime governs the properties misrepresented his citizenship to avoid having to
acquired by the couple? Explain. (2%) present his Certificate of Legal Capacity, or the
holding of the ceremony outside the church of
SUGGESTED ANSWER: beyond the territorial jurisdiction of the solemnizing
The marriage being void, the property relationship officer, are all irregularities which do not affect the
that governed their union is special co-ownership validity of the marriage.
under Article 147 of the Family Code. This is on the
assumption that there was no impediment for them MARRIAGE VALIDITY (2008)
to validly marry each other. Roderick and Faye were high school sweethearts.
When Roderick was 18 and Faye, 16 years old, they
MARRIAGE VALIDITY (2008) started to live together as husband and wife
Ana Rivera had a husband, a Filipino citizen like her, without the benefit of marriage. When Faye
who was among the passengers on board a reached 18 years of age, her parents forcibly took
commercial jet plane which crashed in the Atlantic her back and arranged for her marriage to Brad.
Ocean ten (10) years earlier and had never been Although Faye lived with Brad after the marriage,
heard of ever since. Believing that her husband had Roderick continued to regularly visit Faye while Brad
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was away at work. During their marriage, Faye necessary consequence of the foreign divorce.]
gave birth to a baby girl, Laica. When Faye was 25
years old, Brad discovered her continued liason b. What is the status of the marriage between
with Roderick and in one of their heated Justine and Lea under Philippine laws?
arguments, Faye shot Brad to death. She lost no
time in marrying her true love Roderick, without a A. Valid
marriage license, claiming that they have been B. Void
continuosly cohabiting for more than 5 years. Was C. Voidable
the marriage of Roderick and Faye valid? (2%) D. Unenforceable

SUGGESTED ANSWER: c. What is the status of the marriage between

The marriage was void because there was no Charice and Bugoy under Philippine laws?
marriage license. Their marriage was not exempt
from the requisite of a marriage license because A. Valid
Roderick and Faye have not been cohabiting for at B. Void
least 5 continuous years before the celebration of C. Voidable
their marriage. Their lovers trysts and brief visitations D. Unenforceable
did not amount to cohabitation. Moreover, the
Supreme Court held that for the marriage to be d. What is the status of the marriage between
exempt from a license, there should be no Regine and James under Philippine laws?
impediment for them to marry each other during
the entire 5 years of cohabitation. Roderick and A. Valid
Faye could not have cohabited for 5 continuous B. Void
years without impediment because Faye was then C. Voidable
legally married to Brad. D. Unenforceable


In 1989, Charice (Filipina) and Justine (American), X and Y, Filipinos, got married in Los Angeles, USA,
were married in the Philippines. In 1990, they using a marriage license issued by the Philippine
separated and Justine went to Las Vegas where he consul in Los Angeles, acting as Civil Registrar. X
obtained a divorce in the same year. He then and Y did not know that they were first cousins
married another Filipina, Lea, in Canada on because their mothers, who were sisters, were
January 1, 1992. They had two (2) sons, James and separated when they were quite young. Since X did
John (who were both born in 1992). In 1993, after not want to continue with the relation when he
failing to hear from Justine, Charice married Bugoy heard of it, he left Y, came to the Philippines and
(a Filipino), by whom she had a daughter, Regine. married Z. Can X be held liable for bigamy?
In 2009, Regine married James (son of Justine with
Lea) in California, where such marriage is valid. A. No since Xs marriage to Y is void ab initio or did
not exist.
a. What is the current status of the marriage of B. No since X acted in good faith, conscious that
Charice and Justine under Philippine laws? public policy did not approve of marriage
between first cousins.
A. Valid C. Yes since he married Z without first securing a
B. Void judicial declaration of nullity of his marriage to
C. Voidable Y.
D. Dissolved D. Yes since his first marriage to Y in Los Angeles is
[NOTE: While Article 26 of the Family Code does not
categorically provide that the first marriage is dissolved MARRIAGE VALIDITY (2012)
by the divorce obtained by the foreign spouse abroad, Agay, a Filipino citizen and Topacio, an Australian
but provides that such divorce merely gives the Filipino citizen, got married in the consular office of the
spouse the capacity to contract a second marriage, it is
Philippines in Australia. According to the laws of
believed that the dissolution of the first marriage is the
Australia, a marriage solemnized by a consular
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official is valid, provided that such marriage is A. No, efforts at a compromise will only deepen
celebrated in accordance with the laws of such the wifes anguish.
consular official. Under Philippine law, what is the B. No, since legal separation like validity of
status of the marriage of Agay and Topacio? marriage is not subject to compromise
Choose the best answer. agreement for purposes of filing.
C. Yes, to avoid a family feud that is hurtful to
A. Void, because the consular official only has everyone.
authority to solemnize marriages between D. Yes, since the dispute could have been settled
Filipinos. with the parties agreeing to legal separation.
B. Valid, because according to the laws of
Australia, such consular official has authority to LEGAL SEPARATION REQUISITES (2011)
celebrate the marriage. No decree of legal separation can be issued
C. Voidable, because there is an irregularity in the
authority of the consular official to solemnize A. unless the childrens welfare is attended to first.
marriages. B. without prior efforts at reconciliation shown to
D. Valid, because such marriage is recognized as be futile.
valid in the place where it was celebrated. C. unless the court first directs mediation of the
[NOTE: The issue in the problem is whether or not the fact D. without prior investigation conducted by a
that one of the parties to the marriage was an alien public prosecutor.
constituted absence of authority or mere irregularity of
authority. The problem gives only the choice, letter (a), in
case it is interpreted as absence of authority. The
problem does not give a choice in case it is interpreted
After they got married, Nikki discovered that
as an irregularity thereby making all the other answers Christian was having an affair with another woman.
wrong.] But Nikki decided to give it a try and lived with him
for two (2) years. After two (2) years, Nikki filed an
III. Legal Separation (Family Code) action for legal separation on the ground of
Christian's sexual infidelity. Will the action prosper?
Exclude: A.M. No. 02-11-11-SC, or the Rule on
Explain. (5%)
Legal Separation
LEGAL SAPARATION (2012) Although the action for legal separation has not yet
In legal separation, which is not correct? prescribed, the prescriptive period being five years,
if Christians affair with another woman was ended
A. The aggrieved spouse may file. the action within when Nikki decided to live with him again, Nikkis
five (5) years from the time of the occurrence of action will not prosper on account of condonation.
the cause. However, if such affair is still continuing, Nikkis
B. No trial shall be held without the 6-month action would prosper because the action will surely
cooling off period being observed. be within five (5) years from the commission of the
C. The spouses will be entitled to live separately latest act of sexual infidelity. Every act of sexual
upon the start of the trial. liaison is a ground for legal separation.
D. The prosecuting attorney has to conduct his
own investigation. IV. Rights and Obligations Between
Husband and Wife (Family Code)
The wife filed a case of legal separation against her Exclude: R.A. No. 7192 or the Women in
husband on the ground of sexual infidelity without Development and Nation Building Act; R.A. No.
previously exerting earnest efforts to come to a 8187, or the Paternity Leave Act of 1996; R.A. No.
compromise with him. The judge dismissed the case 9710, or The Magna Carta of Women.
for having been filed without complying with a
condition precedent. Is the dismissal proper? MARRIAGE ABANDONMENT (2011)
The husbands acts of forcibly ejecting his wife
without just cause from the conjugal dwelling and
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refusing to take her back constitutes community of property.

D. They are superseded by the Family Code which
A. desertion. has retroactive effect.
B. recrimination.
C. constructive abandonment. MARRIAGE SETTLEMENT (2011)
D. de facto separation. X and Y agreed verbally before their marriage (a)
on the paternity of the illegitimate child of Y and (b)
MARRIAGE ABANDONMENT (2011) on the economic regime that will govern X and Ys
Is the wife who leaves her husband without just property relations. Is the verbal agreement valid?
cause entitled to support?
A. No, because a marriage settlement to be valid
A. No, because the wife must always be should be in writing.
submissive and respectful to the husband. B. Yes, since ante-nuptial agreements need not
B. Yes. The marriage not having been dissolved, be in writing.
the husband continues to have an obligation to C. No, because a marriage settlement cannot
support his wife. include an agreement on the paternity of an
C. No, because in leaving the conjugal home illegitimate child.
without just cause, she forfeits her right to D. Yes, since even if it is not a valid marriage
support. settlement, it is a valid verbal contract.
D. Yes, since the right to receive support is not
V. Property Relations of the Spouses (Family Solomon sold his coconut plantation to Aragon, Inc.
Code) for P100 million, payable in installments of P10 million
per month with 6% interest per annum. Solomon
PROPERTY RELATIONS (2011) married Lorna after 5 months and they chose
X and Y, both Filipinos, were married and resided in conjugal partnership of gains to govern their
Spain although they intend to return to the property relations. When they married, Aragon had
Philippines at some future time. They have not an unpaid balance of P50 million plus interest in
executed any marriage settlements. What law Solomons favor. To whom will Aragons monthly
governs their property relations? payments go after the marriage?

A. They may choose between Spanish law and A. The principal shall go to the conjugal partnership
Philippine law. but the interests to Solomon.
B. Philippine law since they are both Filipinos. B. Both principal and interests shall go to Solomon
C. No regime of property relations will apply to since they are his exclusive properties.
them. C. Both principal and interests shall go to the
D. Spanish law since they live in Spain. conjugal partnership since these become due
after the marriage.
PROPERTY RELATIONS BEFORE FAMILY CODE (2011) D. The principal shall go to Solomon but the
What happens to the property regimes that were interests to the conjugal partnership.
subsisting under the New Civil Code when the
Family Code took effect? PROPERTY RELATIONS LIQUIDATION (2011)
When A and B married, they chose conjugal
A. The original property regimes are immutable partnership of gains to govern their property
and remain effective. relations. After 3 years, B succeeded in getting her
B. Those enjoying specific regimes under the New marriage to A annulled on ground of the latters
Civil Code may adopt the regime of absolute psychological incapacity. What liquidation
community of property under the Family Code. procedure will they follow in disposing of their
C. Those that married under the New Civil Code assets?
but did not choose any of its regimes shall now
be governed by the regime of absolute A. They will follow the rule governing the liquidation
of a conjugal partnership of gains where the
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party who acted in bad faith forfeits his share in several years. Hardworking and bright, each
the net profits. earned incomes from their respective professions
B. Since the marriage has been declared void, the and enterprises. What is the nature of their
rule for liquidation of absolute community of incomes?
property shall be followed.
C. The liquidation of a co-ownership applies since A. Conjugal since they earned the same while
the annulment brought their property relation living as husband and wife.
under the chapter on property regimes without B. Separate since their property relations with their
marriage. legal spouses are still subsisting.
D. The law on liquidation of partnerships applies. C. Co-ownership since they agreed to work for
their mutual benefit.
PROPERTY RELATIONS (2011) D. Communal since they earned the same as
When does the regime of conjugal partnership of common-law spouses.
gains begin to exist?
A. At the moment the parties take and declare Before Karen married Karl, she inherited P5 million
each other as husband and wife before from her deceased mother which amount she
officiating officer. brought into the marriage. She later used part of
B. At the time the spouses acquire properties the money to buy a new Mercedes Benz in her
through joint efforts. name, which Karen and her husband used as a
C. On the date the future spouses executed their family car. Is the car a conjugal or Karens exclusive
marriage settlements because this is the starting property?
point of their marital relationship.
D. On the date agreed upon by the future spouses A. It is conjugal property since the spouses use it as
in their marriage settlements since their a family car.
agreement is the law between them. B. It is Karens exclusive property since it is in her
PROPERTY RELATIONS (2011) C. It is conjugal property having been bought
Josie owned a lot worth P5 million prior to her during the marriage.
marriage to Rey. Subsequently, their conjugal D. It is Karens exclusive property since she bought
partnership spent P3 million for the construction of a it with her own money.
house on the lot. The construction resulted in an
increase in the value of the house and lot to P9 PROPERTY RELATIONS (2010)
million. Who owns the house and the lot? G and B were married on July 3, 1989. On March 4,
2001, the marriage, which bore no offspring, was
A. Josie and the conjugal partnership of gains will declared void ab initio under Article 36 of the
own both on a 50- 50 basis. Family Code. At the time of the dissolution of the
B. Josie will own both since the value of the house marriage, the couple possessed the following
and the increase in the propertys value is less properties:
than her lots value; but she is to reimburse a house and lot acquired by B on August 3,
conjugal partnership expenses. 1988, one third (1/3) of the purchase price
C. Josie still owns the lot, it being her exclusive (representing downpayment) of which he paid;
property, but the house belongs to the conjugal one third (1/3) was paid by G on February 14,
partnership. 1990 out of a cash gift given to her by her parents
D. The house and lot shall both belong to the on her graduation on April 6, 1989; and the
conjugal partnership, with Josie entitled to balance was paid out of the spouses joint
reimbursement for the value of the lot. income; and
an apartment unit donated to B by an uncle on
Venecio and Ester lived as common-law spouses a. Who owns the foregoing properties? Explain. (5%)
since both have been married to other persons
from whom they had been separated in fact for SUGGESTED ANSWER:
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Since the marriage was declared void ab initio in because he acquired it before their cohabitation.
2001, no Absolute Community or Conjugal Even if he acquired it during their cohabitation it will
Partnership was ever established between B and G. still be his exclusively because it did not come from
Their property relation is governed by a special co- his wage or salary, or from his work or industry. It was
ownership under Art 147 of the Family Code acquired gratuitously from his uncle.
because they were capacitated to marry each
other. Under Art 147, wages and salaries of the b. If G and B had married on July 3, 1987 and their
former spouses earned during their cohabitation marriage was dissolved in 2007, who owns the
shall be owned by them in equal shares while properties? Explain. (5%)
properties acquired thru their work or industry shall
be owned by them in proportion to their respective SUGGESTED ANSWER:
contributions. Care and maintenance of the family The answer is the same as in letter A. Since the
is recognized as a valuable contribution. In the parties to the marriage which was later declared
absence of proof as to the value of their respective void ab initio were incapacitated to marry each
contributions, they shall share equally. other, the applicable law under the New Civil Code
was Article 144. This Article is substantially the same
If ownership over the house and lot was acquired as Article 147 of the Family Code. Hence, the
by B on August 3, 1988 at the time he bought it on determination of ownership will remain will remain
instalment before he got married, he shall remain the same as in question A. And even assuming that
owner of the house and lot but must reimburse G the two provisions are not the same, Article 147 of
for all the amounts she advanced to pay the the Family Code is still the law that will govern the
purchase price and for her one-half share in the last property relations of B and G because under Article
payment from their joint income. In such case, the 256, the Family Code has retroactive effect in so far
house and lot were not acquired during their as it does not prejudice or impair vested or
cohabitation, the house and lot will be owned as acquired rights under the New Civil Code or other
follows: laws. Applying Article 147 retroactively to the case
1. 1/3 of the house and lot is owned by B. He is an of B and G will not impair any vested right. Until the
undivided co-owner to that extent for his declaration of nullity of the marriage under the
contribution in its acquisition in the form of the Family Code, B and G have not as yet acquired
down payment he made prior he made before any vested right over the properties acquired
the celebration of the marriage. The money he during their cohabitation.
used to pay the down payment was not earned
during the cohabitation; hence, it is his exclusive PROPERTY RELATIONS ADULTEROUS MARRIAGE
property. (2009)
2. 1/3 of the house and lot is owned by G. She is If there is no marriage settlement, the salary of a
an undivided co-owner to the extent for her "spouse" in an adulterous marriage belongs to the
contribution in its acquisition when she paid 1/3 of conjugal partnership of gains. True or False?
the purchase price using the gift from her parents.
Although the gift was acquired by G during her SUGGESTED ANSWER:
cohabitation with B, it is her exclusive property. It False. In an adulterous marriage, the salary of a
did not consist of wage or salary or fruit of her married partner belongs to the absolute
work or industry. community, or conjugal partnership. of such
3. 1/3 of the house is co-owned by B and G married partner with his or her lawful spouse. Under
because the payment came from their co-owned Article 148 of the Family Code, the property
funds, i.e., their joint income during their relations between married partner and his/her
cohabitation which is shared by them equally in paramour is governed by ordinary co-ownership
the absence of any proof to the contrary. where the partners become co-owners only when
they contributed to the acquisition of the property.
After summing up their respective shares, B and G The paramour is deemed to have not contributed
are undivided co-owners of the house and lot in in the earning of the salary of the married partner.
equal shares.
As to the apartment, it is owned exclusively by B Audrey, single, bought a parcel of land in Malolos
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City from Franco for P1 Million. A contract was

executed between them which already vested If both of them were capacitated to marry each
upon Audrey full ownership of the property, other, Article 147-Co-ownership will apply to their
although payable in monthly installments for a property relations and the properties in question are
period of four (4) years. One (1) year after the owned by them in equal shares even though all the
execution of the contract, Audrey got married to funds used in acquiring the properties came only
Arnel. They executed a marriage settlement from the salaried or wages, or the income of
whereby they agreed that their properties shall be Jambrich from his business or profession. In such a
governed by the regime of conjugal partnership of case, while Jambrich is disqualified to own any part
gains. Thereafter, subsequent installments were of the properties, his subsequent transfer of all his
paid from the conjugal partnership funds. Is the interest therein to Borromeo, a Filipino, was valid as
land conjugal or paraphernal? it removed the disqualification. In such case, the
propertied are owned by Borromeo and Descallar
A. The land is conjugal because the installments in equal shares.
were paid from the conjugal partnership funds.
B. The land is paraphernal because ownership If, on the other hand, Jambrich and Descallar were
thereof was acquired before the marriage. not capacitated to marry each other, Article 148-
C. The land is both conjugal and paraphernal Co-ownership governs their property relations.
because the installments were paid from both Under this regime, Jambrich and Descallar are co-
the personal funds of Audrey and the conjugal owners of the properties but only if both of them
partnership funds. contributed in their acquisition. If all the funds used
D. The land is paraphernal because it was Audrey in acquiring the properties in question came from
who purchased the same. Jambrich, the entire property is his even though he
is disqualified from owning it. His subsequent transfer
PROPERTY RELATIONS (2012) to Borromeo, however, is valid as it removed the
Jambrich, an Austrian, fell in-love and lived disqualification. In such case, all of the properties
together with Descallar and bought their house and are owned by Borromeo. If, on the other hand,
lots at Agro-Macro Subdivision. In the Contracts to Descallar contributed to their acquisition, the
Sell, Jambrich and Descallar were referred to as the properties are co-owned by Descallar and
buyers. When the Deed of Absolute Sale was Borromeo in proportion to the respective
presented for registration before the Register of contributions of Descallar and Jambrich.
Deeds, it was refused because Jambrich was an
alien and could not acquire alienable lands of the [NOTE: The facts of the problem are not exactly the same
public domain. After Jambrich and Descaller as in the case of Borromeo v. Descallar, G.R. No. 159310,
separated, Jambrich purchased an engine and February 24, 2009, hence, the difference in the resulting
some accessories for his boat from Borromeo. To
pay for his debt, he sold his rights and interests in the
Agro-Macro properties to Borromeo. PROPERTY RELATIONS (2012)
Maria, wife of Pedro, withdrew P5 Million from their
Borromeo discovered that titles to the three (3) lots conjugal funds. With this money, she constructed a
have been transferred in the name of Descallar. building on a lot which she inherited from her
Who is the rightful owner of the properties? Explain. father. Is the building conjugal or paraphernal?
(5%) Reasons. (5%)


It depends. If the value of the building is more than
It depends. On the assumption that the Family the value of the land, the building is conjugal and
Code is the applicable law, the ownership of the the land becomes conjugal property under Article
properties depends on whether or not Jambrich 120 of the Family Code. This is a case of reverse
and Descallar are capacitated to marry each other accession, where the building is considered as the
during their cohabitation, and whether or not both principal and the land, the accessory. If, on the
have contributed funds for the acquisition of the other hand, the value of the land is more than the
propertied. value of the building, then the ordinary rule of
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accession where the land is the principal and the litigation in which they may take part by virtue of
building, the accessory. In such case, the land their profession. While the suit is for annulment of
remains paraphernal property and the building marriage and it may be argued that the land itself
becomes paraphernal property. is not the object of the litigation, the annulment of
marriage, if granted, will carry with it the liquidation
[NOTE: The rule on reverse accession is applicable only to of the absolute community or conjugal partnership
the regime of Conjugal Partnership of Gains in both the of the spouses as the case may be (Art. 50 in
Family Code and the New Civil Code. The foregoing relation to Art. .43 of the Family Code). Richard
answer assumes that CPG is the regime of the property
purchased the land with his lotto winnings during
relations of the spouses.]
the pendency of the suit for annulment and on the
assumption that the parties are governed by the
regime of absolute community or conjugal
Separation of property between spouses during the
partnership, winnings from gambling or betting will
marriage may take place only:
form part thereof. Also, since the land is part of the
absolute community or conjugal partnership o [of]
A. by agreement of the spouses.
Richard and Rica, it may not be sold or alienated
B. if one of the spouses has g1ven ground for legal
without the consent of the latter and any disposition
or encumbrance of the property of the community
C. upon order of the court.
or conjugal property without the consent of the
D. if one spouse has abandoned the other.
other spouse is void (Art. 96 and Art. I24,
Rica petitioned for the annulment of her ten-year
old marriage to Richard. Richard hired Atty. Cruz to
May a spouse freely donate communal or conjugal
represent him in the proceedings. In payment for
property without the consent of the other?
Atty. Cruz's acceptance and legal fees, Richard
conveyed to Atty. Cruz a parcel of land in Taguig
A. Absolutely not, since the spouses co-own such
that he recently purchased with his lotto winnings.
The transfer documents were duly signed and Atty.
B. Yes, for properties that the family may spare,
Cruz immediately took possession by fencing off the
regardless of value.
property's entire perimeter.
C. Yes, provided the donation is moderate and
intended for charity or family rejoicing.
Desperately needing money to pay for his
D. Yes, in a donation mortis causa that the donor
mounting legal fees and his other needs and
may still revoke in his lifetime.
despite the transfer to Atty. Cruz, Richard offered
the same Parcel of land for sale to the spouses
Garcia. After inspection of the land, the spouses
Can common-law spouses donate properties of
considered it a good investment and purchased it
substantial value to one another?
from Richard. Immediately after the sale, the
spouses Garcia commenced the construction of a
A. No, they are only allowed to give moderate
three-story building over the land, but they were
gifts to each other during family rejoicing.
prevented from doing this by Atty. Cruz who
B. No, they cannot give anything of value to each
claimed he has a better right in light of the prior
other to prevent placing their legitimate
conveyance in his favor.
relatives at a disadvantage.
Is Atty. Cruzs claim correct?
C. Yes, unlike the case of legally married spouses,
such donations are not prohibited.
D. Yes, as long as they leave sufficient property for
No, Atty. Cruz is not correct. At first glance, it may
themselves and for their dependents.
appear that Atty. Cruz is the one who has a better
right because he first took possession of the
property. However, a lawyer is prohibited under
VI. The Family
Article 1491 of the Civil Code from acquiring the
property and rights which may be the object of any FAMILY FAMILY HOME (2011)

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Spouses A and B leased a piece of land belonging 181 of the Family Code which states that the
to B's parents for 25 years. The spouses built their legitimation of children who died before the
house on it worth P300,000.00. Subsequently, in a celebration of marriage will benefit their
case that C filed against A and B, the court found descendants," does not preclude instances where
the latter liable to C for P200,000.00. When the such legitimation will benefit no one but the child's
sheriff was attaching their house for the satisfaction descendants, or other relatives.
of the judgment, A and B claimed that it was
exempt from execution, being a family home. Is this LEGITIMACY (2012)
claim correct? The husband may impugn the legitimacy of his
child but not on the ground that:
A. Yes, because while Bs parents own the land,
they agreed to have their daughter build her A. the wife is suspected of infidelity.
family home on it. B. the husband had a serious illness that prevented
B. No, because there is no judicial declaration that him from engaging in sexual intercourse.
it is a family home. C. they were living apart.
C. No, since the land does not belong to A and B, D. he is physically incapable of sexual intercourse.
it cannot qualify as a family home.
D. Yes, because the A and Bs family actually lives LEGITIMACY (2012)
in that house. Who are illegitimate children?

FAMILY COMPROMISE (2011) A. Children conceived or born outside a valid

Janice and Jennifer are sisters. Janice sued Jennifer marriage.
and Laura, Jennifers business partner for recovery B. Children born under a valid marriage, which
of property with damages. The complaint did not was later declared void because of the
allege that Janice exerted earnest efforts to come psychological incapacity of either or both of
to a compromise with the defendants and that the spouses.
such efforts failed. The judge dismissed the C. Children conceived and born outside a valid
complaint outright for failure to comply with a marriage.
condition precedent. Is the dismissal in order? D. Children born under a valid marriage, but the
parents later obtained a legal separation.
A. No, since Laura is a stranger to the sisters,
Janice has no moral obligation to settle with LEGITIMACY (2011)
her. Fidel, a Filipino with fair complexion, married Gloria.
B. Yes, since court should promote amicable Before the marriage, Gloria confessed to Fidel that
settlement among relatives. she was two-month pregnant with the child of a
C. Yes, since members of the same family, as black African who had left the country for good.
parties to the suit, are required to exert earnest When the child was born, Fidel could not accept it
efforts to settle their disputes before coming to being too black in complexion. What is the status of
court. the child?
D. No, the family council, which would ordinarily A. Illegitimate, because Gloria confessed that the
mediate the dispute, has been eliminated child is not Fidels.
under the Family Code. B. Illegitimate, because by the color of its skin, the
child could not possibly be that of Fidel.
VII. Paternity and Filiation (Family Code) C. Legitimate, because the child was born within a
valid marriage.
LEGITIMACY (2009) D. Legitimate, because Fidel agreed to treat the
A dead child can be legitimated. True or False? child as his own after Gloria told him who the
father was.
TRUE. To be legitimated, the law does not require LEGITIMACY (2011)
the child to be alive at the time of the marriage of X, a married man, cohabited with Y, an unmarried
his/her parents (Article 177, FC). Furthermore, Art. woman. Their relation bore them BB, a baby boy.
Subsequently, after X became a widower, he
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married Y. Was BB legitimated by that marriage? Aimees husband is required by law to be registered
A. Yes, since his parents are now lawfully married. under the surname of Aimees husband. While it is
B. Yes, since he is an innocent party and the true that Giannas registered surname is erroneous,
marriage rectified the wrong done him. a judicial action for correction of entry to change
C. No, since once illegitimate, a child shall always the surname og Gianna to that of Aimees maiden
remain illegitimate. surname will also be erroneous. A judicial action to
D. No, since his parents were not qualified to marry correct an entry in the birth certificate is allowed to
each other when he was conceived. correct an error and not to commit another error.


Gianna was born to Andy and Aimee, who at the (a)(ii):
time Gianna's birth were not married to each other. It May be noted that the problems do not show
While Andy was single at the time, Aimee was still in whether Gianna was born while Aimee was living
the process of securing a judicial declaration of with her ex-husband. Neither does it show who filed
nullity on her marriage to her ex-husband. Gianna's the judicial action to correct the entries.
birth certificate, which was signed by both Andy
and Aimee, registered the status of Gianna as If the problem is intended only for the purpose of
"legitimate", her surname carrying that of Andy's determining whether factual changes are in order,
and that her parents were married to each other. then the answers are:
(i.) A change from legitimate to illegitimate is
a. Can a judicial action for correction of entries in proper upon proof of lack of marriage between
Gianna's birth certificate be successfully Andy and Aimee.
maintained to: (ii.) If the child is considered illegitimate, then she
should follow the surname of her mother.
i. Change her status from "legitimate" to
"illegitimate" (1%); and b. Instead of a judicial action, can administrative
proceedings be brought for the purpose of making
SUGGESTED ANSWER: the above corrections? (2%)
a.i.) A judicial action cannot be maintained to
change the status of Gianna from legitimate to SUGGESTED ANSWER:
illegitimate child of Andy and Aimee. While it is true Under R.A. 9048, only typographical errors are
that Giannna is the biological daughter of Andy allowed to be corrected administratively. The
and Aimee conceived and born without marriage change of status from legitimate to illegitimate is
between them, Gianna is presumed, under the law not a typographical error and even assuming that it
as the legitimate child of Aimee and her husband. is, its administrative correction is not allowed under
This filiation may be impugned only by the husband. R.A. 9048. Typographical errors involving status, age,
To correct that status of Gianna in her birth citizenship, and gender are expressly excluded from
certificate from legitimate child of Andy and what may be corrected administratively.
Aimee to illegitimate child of Andy and Aimee
will amount to indirectly impugning her filiation as The change of the surname is also not allowed
the child of Aimees husband. This is not allowed administratively. R.A. 9048 provides for an
unless brought by Aimees husband in a proper administrative procedure for change of first name
action. What cannot be done directly cannot be only and not for change of surname.
done indirectly.
c. Assuming that Aimee is successful in declaring
ii. Change her surname from that of Andy's to her former marriage void, and Andy and Aimee
Aimee's maiden surname? (1%) subsequently married each other, would Gianna be
legitimated? (1%)
a.Ii.) A judicial action to change the surname of SUGGESTED ANSWER:
Gianna from the surname of Andy to the maiden No, Gianna will not be legitimated. While the court
surname of Aimee is also not allowed. Gianna, may have declared the marriage void ab initio
being presumed to be the legitimate child of and, therefore, no marriage took place in the eyes
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of the law, Gianna will still not be legitimated. This is C. Any one who is outraged by Bs claim.
because at the time she was conceived and born D. No one since A died.
her biological parents could not have validly
married each other. For their marriage to be valid, LEGITIMACY ACKNOWLEDGMENT (2011)
the court must first declare the first marriage null While engaged to be married, Arnold and
and void. In the problem. Gianna was conceived Josephine agreed in a public instrument to adopt
and born before the court has decreed the nullity out the economic regime of absolute community of
of her mothers previous marriage. property. Arnold acknowledged in the same
instrument that Josephines daughter Mary, is his
LEGITIMACY, USE OF SURNAMES (2010) illegitimate child. But Josephine died before the
Spouses B and G begot two offspring. Albeit they marriage could take place. Does the marriage
had serious personality differences, the spouses settlement have any significance?
continued to live under one roof. B begot a son by A. None, since the instrument containing the
another woman. G also begot a daughter by marriage settlement is essentially void for
another man. containing an unrelated matter.
B. Yes, insofar as Arnold acknowledged Mary as
a. If G gives the surname of B to her daughter by his illegitimate child.
another man, what can B do to protect their C. None, since the marriage did not take place.
legitimate children's interests? Explain. (5%) D. Yes, if they acquired properties while living
together as husband and wife.
B can impugn the status of Gs daughter by (2009)
another man as his legitimate daughter on the Four children, namely: Alberto, Baldomero,
ground that for biological reason he could not Caridad, and Dioscoro, were born to the spouses
have been the father of the child, a fact that may Conrado and Clarita de la Costa. The childrens
be proven by the DNA test. Having been born birth certificates were duly signed by Conrado,
during the marriage between B and G, Gs showing them to be the couples legitimate
daughter by another man is presumed as the child children.
of B under Art 164 of the Family Code. In the same
action to impugn, B can pray for the correction of Later, one Edilberto de la Cruz executed a notarial
the status of the said daughter in her record of birth. document acknowledging Alberto and Baldomero
as his illegitimate children with Clarita. Edilberto
b. If B acquiesces to the use of his surname by Gs died leaving substantial properties. In the
daughter by another man, what is/are the settlement of his estate, Alberto and Baldomero
consequence/s? Explain. (5%) intervened claiming shares as the deceaseds
illegitimate children. The legitimate family of
SUGGESTED ANSWER: Edilberto opposed the claim.
If B acquiesce and does not file the action to
impugn the legitimacy of the child within the Are Alberto and Baldomero entitled to share in the
prescriptive period for doing so in Art 170 of the estate of Edilberto? Explain. (4%)
Family Code, Gs daughter by another man shall
be conclusively presumed as the legitimate SUGGESTED ANSWER:
daughter of B by G. No, Alberto and Baldomero are not entitled to
share in Edilberto's estate. They are not related at all
PATERNITY ILLEGITIMATE CHILD (2011) to Edilberto. They were born during the marriage of
A left B, his wife, in the Philippines to work in Egypt Conrado and Clarita, hence, are considered
but died in that country after a years continuous legitimate children of said spouses. This status is
stay. Two months after As death, B gave birth to a conferred on them at birth by law.
child, claiming it is As child. Who can assail the
legitimacy of the child? Under the Philippine law, a person cannot have
A. As other heirs apart from B. more than one natural filiation. The legitimate
B. The State which has interest in the welfare of filiation of a person can be changed only if the
overseas contract workers. legitimate father successfully impugn such status.
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c. Can Laica be legitimated by the marriage of her

In the problem, therefore, the filiation of Alberto biological parents? (1%)
and Baldomero as the legitimate children of
Conrado cannot be changed by their recognition SUGGESTED ANSWER:
by Edilberto as his legitimate children. Before they No, she cannot be legitimated by the marriage of
can be conferred the status of Edilberto's her biological parents. In the first place she is not,
illegitimate children, Conrado must first impugn their under the law, the child of Roderick. In the second
legitimacy, they continue to be the legitimate place, her biological parents could not have validly
children of Conrado. They cannot be the married each other at the time she was conceived
illegitimate children of Edilberto at the same time. and born simply because Faye was still married to
Not being the illegitimate children of Edilberto, they Roderick at that time. Under Art 177 of the FC, only
have no right to inherit from him. children conceived or born outside of wedlock of
parents who, at the time of the conception of the
FILIATION (2008) child were not disqualified by any impediment to
Roderick and Faye were high school sweethearts. marry each other, may be legitimated.
When Roderick was 18 and Faye, 16 years old, they
started to live together as husband and wife VIII. Adoption
without the benefit of marriage. When Faye
reached 18 years of age, her parents forcibly took A. Domestic Adoption Act of 1998 (R.A. No. 8552)
her back and arranged for her marriage to Brad.
Although Faye lived with Brad after the marriage, Exclude:
Roderick continued to regularly visit Faye while Brad
was away at work. During their marriage, Faye 1. Rule on Adoption (A.M. No. 02-6-02-SC )
gave birth to a baby girl, Laica. When Faye was 25 2. R.A. No. 9523, entitled An Act Requiring
Certification of the Department of Social
years old, Brad discovered her continued liason
Welfare and Development to Declare a
with Roderick and in one of their heated Child Legally Available for Adoption as a
arguments, Faye shot Brad to death. She lost no Prerequisite for Adoption Proceedings x x x.
time in marrying her true love Roderick, without a
marriage license, claiming that they have been B. Inter-Country Adoption Act of 1995 (R.A. No.
continuosly cohabiting for more than 5 years. 8043)

a. What is the filiation status of Laica? (2%) Exclude: Articles 183-188, 191-193 (Family Code)


Having been born during the marriage of Faye and Under RA 8043, an adopter is required to be at least
Brad, she is presumed to be the legitimate child of __ years old and __ years older than the child to be
Faye and Brad. This presumption become adopted at the time of the application unless the
conclusive because the period of time to impugn adopter is the parent by nature of the child.
her filiation had already prescribed.
A. 30 and 15
b. Can Laica bring an action to impugn her own B. 27 and 16
status on the ground that based on DNA results, C. 50 and 10
Roderick is her biological father? (2%) D. 18 and 15


No, she cannot impugn her own filiation. The law Under RA 8043, a child qualified to be adopted is
does not allow a child to impugn his or her own any person below __ years old.
filiation. In the problem, Laicas legitimate filiation
was accorded to her by operation of law which A. 18
may be impugned only by Brad, or hi heirs in the B. 21
cases provided by law within the prescriptive C. 15
period. D. 16

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ADOPTION (2008) was already a final decree of legal separation.

Despite several relationships with different women,
Andrew remained unmarried. His first relationship b. If there was no legal separation, can Rex still
with Brenda produced a daughter, Amy, now 30 adopt his illegitimate child? Explain. (2.5%)
years old. His second, with Carla, produced two
sons: Jon and Ryan. His third, with Donna, bore him SUGGESTED ANSWER:
no children although Elena has a daughter Jane, Yes, he can still adopt his illegitimate child but with
from a previous relationship. His last, with Fe, the consent of his spouse, of his 14-year-old
produced no biological children but they informally legitimate child, of the illegitimate child, and of the
adopted without court proceedings, Sandy's now biological mother of the illegitimate child (Section 7
13 years old, whom they consider as their own. and 9, RA 8552).
Sandy was orphaned as a baby and was entrusted
to them by the midwife who attended to Sandy's ADOPTION ALIEN SPOUSE (2010)
birth. All the children, including Amy, now live with Eighteen-year old Filipina Patrice had a daughter
Andrew in his house. Is there any legal obstacle to out of wedlock whom she named Laurie. At 26,
the legal adoption of Amy by Andrew? To the legal Patrice married American citizen John who brought
adoption of Sandy by Andrew and Elena? (2%) her to live with him in the United States of America.
John at once signified his willingness to adopt
SUGGESTED ANSWER: Laurie. Can John file the petition for adoption? If
No, there is no legal obstacle to the legal adoption yes, what are the requirements? If no, why? (5%)
of Amy by Andrew. While a person of age may not SUGGESTED ANSWER:
be adopted, Amy falls within two exceptions: (1) No, John cannot file the petition to adopt alone.
she is an illegitimate child and she is being adopted Philippine law requires husband and wife to adopt
by her illegitimate father to improve her status; and jointly except in certain situations enumerated in
(2) even on the assumption that she is not an the law. The case of John does not fall in any of the
illegitimate child of Andrew, she may still be exceptions. (R.A. 8552).
adopted, although of legal age, because she has
been consistently considered and treated by the ADOPTION JOINT ADOPTION (2012)
adopter as his own child since minority. In fact, she Spouses Primo and Monina Lim, childless, were
has been living with him until now. entrusted with the custody of two (2) minor children,
the parents of whom were unknown. Eager of
There is a legal obstacle to the adoption of Sandy having children of their own, the spouses made it
by Andrew and Elena. Andrew and Elena cannot appear that they were the children's parents by
adopt jointly because they are not married. naming them Michelle P. Lim and Michael Jude Lim.
Subsequently, Monina married Angel Olario after
Spouses Rex and Lea bore two children now aged
14 and 8. During the subsistence of their marriage, She decided to adopt the children by availing the
Rex begot a child by another woman. He is now 10 amnesty given under R.A. 8552 to those individuals
years of age. On Leas discovery of Rexs fathering who simulated the birth of a child. She filed
a child by another woman, she filed a petition for separate petitions for the adoption of Michelle,
legal separation which was granted. Rex now then 25 years old and Michael, 18. Both Michelle
wants to adopt his illegitimate child. and Michael gave consent to the adoption.

a. Whose consent is needed for Rexs adoption of The trial court dismissed the petition and ruled that
his illegitimate child? (2.5%) Monina should have filed the petition jointly with her
new husband. Monina, in a Motion for
SUGGESTED ANSWER: Reconsideration argues that mere consent of her
The consent of the 14-year-old legitimate child, of husband would suffice and that joint adoption is
the 10-year-old illegitimate child, and of the not needed, for the adoptees are already
biological mother of the illegitimate are needed for emancipated.
the adoption. (Section 7 and 9, RA 8552). The
consent of Lea is no longer required because there Is the trial court correct in dismissing the petitions for
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adoption? Explain. (5%) provides only for the case where it is the petitioner
who dies before the decree is issued, it is with more
SUGGESTED ANSWER: compelling reason that the decree should be
YES, the trial court was correct. At the time the allowed in case it is the adoptee who dies because
petitions for adoptions were filed, petitioner had adoption is primarily for his benefit.
already remarried. Under the law, husband and
wife shall adopt jointly, except in the cases IX. Support (Family Code)
enumerated in the law. The adoption cases of
Michelle and James do not fall in any of the SUPPORT (2011)
exceptions provided in the law where a spouse is Spouses X and Y have a minor daughter, Z, who
permitted to adopt alone. Hence, Monina should needs support for her education. Both X and Y, who
adopt jointly with her husband Angel. (Adoption of are financially distressed, could not give the
Michelle P. Lim, G.R. Nos. 168992-93, May 21, 2009). needed support to Z. As it happens, Zs other
relatives are financially capable of giving that
ADOPTION TERMINATON OF PROCEEDINGS (2009) support. From whom may Z first rightfully demand
Rafael, a wealthy bachelor, filed a petition for the support? From her
adoption of Dolly, a one-year old foundling who A. grandfather.
had a severe heart ailment. During the pendency B. brother.
of the adoption proceedings, Rafael died of natural C. uncle.
causes. The Office of the Solicitor General files a D. first cousin.
motion to dismiss the petition on the ground that
the case can no longer proceed because of the SUPPORT (2011)
petitioners death. Illegitimate brothers and sisters, whether of full or
half-blood, are bound to support each other,
a. Should the case be dismissed? Explain. (2%) EXCEPT when
A. the brother or sister who needs support lives in
SUGGESTED ANSWER: another place.
It depends on the stage of the proceedings when B. such brothers and sisters are not recognized by
Rafael died. If he died after all the requirements their father.
under tha law have been complied with and the C. the brother or sister in need stops schooling
case is already submitted for resolution, the court without valid reason.
may grant the petition and issue a decree of D. the need for support of a brother or sister,
adoption despite the death of the adopter (Section already of age, is due to the latter's fault.
13, RA 8552). Otherwise, the death of the petitioner
shall have the effect of terminating the SUPPORT (2008)
proceedings. Despite several relationships with different women,
Andrew remained unmarried. His first relationship
b. Will your answer be the same if it was Dolly who with Brenda produced a daughter, Amy, now 30
died during the pendency of the adoption years old. His second, with Carla, produced two
proceedings? Explain. (2%) sons: Jon and Ryan. His third, with Donna, bore him
no children although Elena has a daughter Jane,
SUGGESTED ANSWER: from a previous relationship. His last, with Fe,
No, if it was Dolly who died, the case should be produced no biological children but they informally
dismissed. Her death terminates the proceedings adopted without court proceedings, Sandy's now
(Art. 13, Domestic Adoption Law). 13 years old, whom they consider as their own.
Sandy was orphaned as a baby and was entrusted
ALTERNATIVE ANSWER: to them by the midwife who attended to Sandy's
It depends. If all the requirements under the law birth. All the children, including Amy, now live with
have already been complied with and the case is Andrew in his house.
already submitted for resolution, the death of the
adoptee should not abate the proceedings. The a. In his old age, can Andrew be legally entitled to
court should issue the decree of adoption if it will be claim support from Amy, Jon, Ryan, Vina, Wilma,
for the best interest of the adoptee. While RA 8552
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and Sandy assuming that all of them have the the court and the properties of the marriage were
means to support him? (1%) distributed, there remained no more common
properties of B and G. While Art 198 of the Family
SUGGESTED ANSWER: Code appears to limit the source of support to the
Andrew can claim support from them all, except common properties of the said marriage in case of
from Sandy, who is not his child, legitimate, the pendency of an action to declare the nullity of
illegitimate or adopted. marriage, Art 94 and Art 121 indicate otherwise.
Under the said Articles, the spouses remain solidarily
b. Can Amy, Jon, Ryan, Vina, Wilma, and Sandy liable with their separate properties for support
legally claim support from each other? (2%) even though, for whatever reason, there are no
more community or partnership properties left.
Amy, Jon, Ryan Vina, and Wilma can ask support The judgment based on the compromise dissolving
from each other because they are half-blood the property relations of B and G does not bar G
brothers and sisters, and Vina and Wilma are full- from asking support pendente lite. The dissolution of
blood sisters (Art. 195 [5], Family Code), but not the property relations of the spouses did not
Sandy who is not related to any of them. terminate the obligation between them to support
each other. The declaration of the nullity of their
SUPPORT (2010) marriage is what terminates the right of G to be
G filed on July 8, 2000 a petition for declaration of supported B as his spouse.
nullity of her marriage to B. During the pendency of
the case, the couple entered into a compromise b. Suppose in late 2004 the two children had
agreement to dissolve their absolute community of squandered the P3 million fund for their education
property. B ceded his right to their house and lot before they could obtain their college degrees,
and all his shares in two business firms to G and their can they ask for more support from B? Explain. (3%)
two children, aged 18 and 19.
B also opened a bank account in the amount of P3 Yes, the two children can still ask for support for
million in the name of the two children to answer for schooling or training for some profession, trade or
their educational expenses until they finish their vocation, even beyond the age of majority until
college degrees. they shall have finished or completed their
education (Art 194, Paragraph 2, Family Code;
For her part, G undertook to shoulder the day-to- Javier v. Lucero, 94 Phil. 634 [1954]). Their having
day living expenses and upkeep of the children. squandered the money given to them for their
The Court approved the spouses agreement on education will not deprive them of their right to
September 8, 2000. complete an education, or to extinguish the
obligation of the parents to ensure the future of
a. Suppose the business firms suffered reverses, their children.
rendering G unable to support herself and the
children. Can G still ask for support pendente lite X. Parental Authority (Family Code)
from B? Explain. (3%)
SUGGESTED ANSWER: 1. Rule on Guardianship of Minors (A.M. No. 03-
Yes, G can still ask for support from B because 02-05-SC)
during the pendency of the action, the marriage 2. Rules on Custody of Minors and Writ of
between them is considered still subsisting (Art 68, Habeas Corpus in Relation to Custody of
Minors (A.M. No. 03-04-04-SC)
Family Code). Being considered still married to
3. Solo Parents' Welfare Act of 2000 (R.A. No.
each other, B and G still have the obligation to 8972)
support each other. The compromise agreement 4. The Early Childhood Care and Development
cannot operate to waive future support when Act (R.A. No. 8980)
needed (Art 2035, Civil Code).
Exclude: R.A. No. 9231, entitled An Act Providing
After the compromise agreement was approved by for the Elimination of the Worst Forms of Child
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Labor and Affording Stronger Protection for the C. Compels the child to take up a course in
Working Child x x x, which will be covered under college against his/her will.
Labor Law D. Subjects the child or allows him to be subjected
to acts of lasciviousness.
Include: Child Abuse Law (R.A. No. 7610)


Which of the following DOES NOT result in
permanent termination of parental authority?
The authority that school administrators exercise
over school children under their supervision,
A. Death of the parents.
instruction, or custody is called
B. Death of the child.
C. Emancipation of the child.
A. legal parental authority.
D. Conviction of the parents of a crime which
B. substitute parental authority.
carries with it the penalty of civil interdiction.
C. ordinary parental authority.
D. special parental authority.
XI. Emancipation (Arts. 234 and 236, Family
CHILDREN (2009) which lowered the age of majority)
Rodolfo, married to Sharon, had an illicit affair with
his secretary, Nanette, a 19-year old girl, and begot XII. Summary Judicial Proceedings in Family
a baby girl, Rona. When Rona reaches seven (7) Law Cases
years old, she tells Rodolfo that she prefers to live
with him, because he is better off financially than
XIII. Retroactivity of the Family Code (Art.
Nanette. If Rodolfo files an action for the custody of
Rona, alleging that he is Ronas choice as custodial
parent, will the court grant Rodolfos petition? Why
or why not? (2%) Exclude: Arts. 254-255, 257 (Family Code)

SUGGESTED ANSWER: XIV. Funerals (Arts. 305-310, Civil Code)

No, because Rodolfo has no parental authority
over Rona. He who has parental authority has the Exclude: Care and Education of Children
right to custody. Under the Family Code, the mother (Arts. 356-363, Civil Code)
alone has parental authority over the illegitimate
child. This is true even if the illegitimate father has XV. Use of Surnames
recognized the child and even though he is giving
support for the child. To acquire custody over Rona,
Arts. 364-369, 369-380, Civil Code (other articles
Rodolfo should first deprive Nanette of parental repealed by Family Code)
authority if there is a ground under the law, and in a
proper court proceeding. In the same action, the SURNAME ILLEGITIMATE CHILDREN (2011)
court may award custody of Rona to Rodolfo if it is Illegitimate children, those not recognized by their
for her best interest. biological fathers, shall use the surname of their
PARENTAL AUTHORITY SUSPENSION (2012) A. biological father subject to no condition.
The court, in an action filed for the purpose, may B. mother or biological father, at the mothers
suspend parental authority if the parent or the discretion.
person exercising parental authority commits any of C. mother.
the following acts, except: D. biological father unless he judicially opposes it.
A. Treats the child with excessive harshness or SURNAME ILLEGITIMATE CHILDREN (2009)
cruelty. Rodolfo, married to Sharon, had an illicit affair with
B. Gives the child corrupting orders., counsel or his secretary, Nanette, a 19-year old girl, and begot
example. a baby girl, Rona. Suppose Rodolfo later on
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acknowledges Rona and gives her regular support,

can he compel her to use his surname? Why or why SUGGESTED ANSWER:
not? (2%) NO, the trial court was not correct. There is no law
prohibiting an illegitimate child adopted by his
SUGGESTED ANSWER: natural father to use as middle name his mothers
No, he has no right to compel Rona to use his surname. The law is silent as to what middle name
surname. The law does not give him that right simply an adoptee may use. In the case of In re: Adoption
because he gave her support. (RA 9225). of Stephanie Nathy Astorga Garcia, G.R. No.
148311, March 31, 2005, the Supreme Court ruled
Under the Family Code, an illegitimate child was that the adopted child may use the surname of the
required to use only the surname of the mother. natural mother as his middle name because there is
Under RA 9225, otherwise known as the Revilla law, no prohibition in the law against it. Moreover, it will
however, the illegitimate child is given the option to also be for the benefit of the adopted child who
use the surname of the illegitimate father when the shall preserve his lineage on his mothers side and
latter has recognized the former in accordance reinforce his right to inherit from his mother and her
with law. Since the choice belongs to the family. Lastly, it will make the adopted child
illegitimate child, Rodolfo cannot compel Rona, if conform with the time-honored Filipino tradition of
already of age, to use his surname against her will. If carrying the mothers surname as the persons
Rona is still a minor, to use the surname of Rodolfo middle name.
will require the consent of Rona's mother who has
sole parental authority over her. XVI. Absence (Art. 43, Civil Code; Art. 41,
Family Code)
An illegitimate child may use the surname of his
father when his filiation is established in any of the XVII. Civil Registrar
following instances, except:
Exclude: Act No. 375 and the Implementing Rules
and Regulations of R.A. No. 9048
A. Filiation has been recognized by the father
through the record of birth appearing in the civil
B. Admission of.filiation by the father in a public PROPERTY
C. Private handwritten instrument is made by the I. Characteristics
father acknowledging his filiation.
D. Affidavit by the mother stating the name of his PROPERTY PRINCIPLES (2011)
true father. The owner of a thing cannot use it in a way that will
injure the right of a third person. Thus, every building
SURNAME ILLEGITIMATE CHILDREN (2012) or land is subject to the easement which prohibits its
Honorato filed a petition to adopt his minor proprietor or possessor from committing nuisance
illegitimate child Stephanie, alleging that like noise, jarring, offensive odor, and smoke. This
Stephanie's mother is Gemma Astorga Garcia; that principle is known as
Stephanie has been using her mother's middle
name and surname; and that he is now a widower A. Jus vindicandi.
and qualified to be her adopting parent. He B. Sic utere tuo ut alienum non laedas.
prayed that Stephanie's middle name be changed C. Jus dispondendi.
from "Astorga" to "Garcia," which is her mother's D. Jus abutendi.
surname and that her surname "Garcia" be
changed to "Catindig," which is his surname. This II. Classification
the trial court denied. Was the trial court correct in
denying Honorato's request for Stephanie's use of PROPERTY PUBLIC DOMINION (2012)
her mother's surname as her middle name? Explain. The following things are property of public
(5%) dominion, except:

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naturalized Filipino citizen. Six years after Chuas

A. ports and bridges constructed by the State. death, the heirs executed an extrajudicial
B. vehicles and weapons of the Armed Forces of settlement of estate, and the parcel of land was
the Philippines. allocated to Julian. In 2007, Luciano filed suit to
C. rivers. recover the land he sold to Chua, alleging that the
D. lands reclaimed by the state from the sea. sale was void because it contravened the
Constitution which prohibits the sale of private lands
SUGGESTED ANSWER: to aliens. Julian moved to dismiss the suit on
This question should be disregarded because there grounds of pari delicto, laches and acquisitive
is no correct answer in the choices given. prescription. Decide the case with reasons. (4%)

[NOTE: At first glance, one gets the impression that SUGGESTED ANSWER:
vehicles and weapons of the AFP are not property of The case must be dismissed. Julian, who is a
public dominion. But they are actually property of public naturalized Filipino citizen and to whom the
dominion under the second paragraph of Article 420 of
property was allocated in an extra-judicial partition
the NCC. Property of the State which are not for public
use but are intended for some public service are
of the estate is now the owner of the property. The
properties of public dominion. While the vehicles and defect in ownership of the property of Julians's alien
weapoins of the AFP are not for public use, they are father has already been cured by its transfer to
being used for the defense of the State which is a public Julian. It has been validated by the transfer of the
service.] property to a Filipino citizen. Hence, there is no
more violation of the Constitution because the
PROPERTY PATRIMONIAL PROPERTY (2012) subject real property is now owned by a Filipino
Which of the following statements is wrong? citizen (Halili v CA 287 SCRA 465 [1998]_. Further,
after the lapse of 35 years, laches has set in and the
A. Patrimonial property of the state, when no motion to dismiss may be granted for the failure of
longer intended for public use or for public Luciano to question the ownership of Chua before
service, shall become property of public its transfer to Julian.
B. All property of the State, which is not of public OWNERSHIP HIDDEN TREASURE (2010)
dominion, is patrimonial property. O, owner of Lot A, learning that Japanese soldiers
C. The property of provinces, cities and may have buried gold and other treasures at the
municipalities is divided into property for public adjoining vacant Lot B belonging to spouses X & Y,
use and patrimonial property. excavated in Lot B where she succeeded in
D. Property is either of public dominion or of unearthing gold and precious stones. How will the
private ownership. treasures found by O be divided? (1%)

III. Ownership A. 100% to O as finder

B. 50% to O and 50% to the spouses X and Y
OWNERSHIP LIMITATIONS (2012) C. 50% to O and 50% to the state
The following are the limitations on the right of D. None of the above
ownership imposed by the owner himself, except:
The general rule is that the treasure shall belong to
A. Will/Succession the spouses X and Y, the owners of Lot B. Under
B. Mortgage Article 438 (NCC), the exception is that when the
C. Pledge discovery of a hidden treasure is made on the
D. Lease property of another and by chance, one-half
thereof shall belong to the owner of the land and
OWNERSHIP PROPERTY (2009) the other one-half is allowed to the finder. In the
In 1972, Luciano de la Cruz sold to Chua Chung problem, the finding of the treasure was not by
Chun, a Chinese citizen, a parcel of land in chance because O knew that the treasure was in
Binondo. Chua died in 1990, leaving behind his wife Lot B. While a trespasser is also not entitled to any
and three children, one of whom, Julian, is a share, and there is no indication in the problem
whether or not O was a trespasser, O is not entitled
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to a share because the finding was not by the finder shall be given a reward of one-tenth of
chance. the price of the thing found, as a lost movable, on
the principle of quasi-contract.
Adam, a building contractor, was engaged by Blas However, the notes and coins may have become
to construct a house on a lot which he (Blas) owns. res nullius considering that Banco de las Islas
While digging on the lot in order to lay down the Filipinas is no longer a juridical person and has
foundation of the house, Adam hit a very hard apparently given up looking for then and Adam,
object. It turned out to be the vault of the old the first one to take possession with intent to possess
Banco de las Islas Filipinas. Using a detonation shall become the sole owner.
device, Adam was able to open the vault
containing old notes and coins which were in b. Assuming that either or both Adam and Blas are
circulation during the Spanish era. While the notes adjudged as owners, will the notes and coins be
and coins are no longer legal tender, they were deemed part of their absolute community or
valued at P100 million because of their historical conjugal partnership of gains with their respective
value and the coins silver nickel content. The spouses? (2%)
following filed legal claims over the notes and
i. Adam, as finder; Yes. The hidden treasure will be part of absolute
ii. Blas, as owner of the property where they were community or conjugal property of the respective
found; marriages (Arts. 91, 93 and 106, Family Code).
iii. Bank of the Philippine Islands, as successor-in-
interest of the owner of the vault; and ALTERNATIVE ANSWER:
iv. The Philippine Government because of their It is not hidden treasure and therefore, not part of
historical value. the absolute or conjugal partnership of the spouses.
But the finder of the lost movable, then his reward
a. Who owns the notes and coins? (4%) equivalent to one-tenth of the value of the vaults
contents, will form part of the conjugal partnership.
MAIN SUGGESTED ANSWER: If the government wants to acquire the notes and
Hidden treasure is money jewelry or other precious coins, it must expropriate them for public use as
objects the ownership of which does not appear museum pieces and pay just compensation.
(Art. 439, CC). The vault of the Banco de las Islas
Filipinas has been buried for about a century and HIDDEN TREASURE OWNERSHIP (2012)
the Bank of the Philippine Islands cannot succeed A husband by chance discovered hidden treasure
by inheritance to the property of Banco de las Islas on the paraphernal property of his wife. Who owns
Filipinas. The ownership of the vault, together with the discovered treasure?
the notes and coins can now legally be considered
as hidden treasure because its ownership is no A. The half pertaining to the husband (finder)
longer apparent. The contractor, Adams is not a belongs to the conjugal partnership.
trespasser and therefore entitled to one-half of the B. The half pertaining to the wife (as owner)
hidden treasure and Blas as owner of the property, belongs to the conjugal partnership.
is entitled the other half (Art. 438, CC). Since the C. One half shall belong to the husband as finder
notes and coins have historical value, the and the other half shall belong to the wife as
government may acquire them at their just price owner of the property.
which in turn will be divided equally between D. A and B
Adam and Blas (Art. 438, par. 3, CC).
IV. Accession
The Banco de las Islas Filipinas is the owner of the ACCESSION ACCRETION (2008)
vault. The finder and owner of the land cannot The properties of Jessica and Jenny, who are
share in the notes and coins, because they are not neighbors, lie along the banks of the Marikina River.
buried treasure under the law, as the ownership is At certain times of the year, the river would swell
known. Although under Art. 720 of the Civil Code and as the water recedes, soil, rocks and other
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materials are deposited on Jessica's and Jenny's and rocks excavated from the properties dumped
properties. This pattern of the river swelling, on the adjoining shore, giving rise to a new patch of
receding and depositing soil and other materials dry land. Can they validly lay claim to the patch of
being deposited on the neighbors' properties have land? (2%)
gone on for many years. Knowing his pattern,
Jessica constructed a concrete barrier about 2 SUGGESTED ANSWER:
meters from her property line and extending Jessica and Jenny cannot validly lay claim to the
towards the river, so that when the water recedes, price of dry land that resulted from the dumping of
soil and other materials are trapped within this rocks and earth materials excavated from their
barrier. After several years, the area between properties because it is a reclamation without
Jessica's property line to the concrete barrier was authority. The land is part of the lakeshore, if not the
completely filled with soil, effectively increasing lakebed, which is inalienable land of the public
Jessica's property by 2 meters. Jenny's property, domain.
where no barrier was constructed, also increased
by one meter along the side of the river. V. Quieting of Title to or Interest in and
Removal or Prevention of Cloud
a. Can Jessica and Jenny legally claim ownership
over Title to or Interest in Real
over the additional 2 meters and one meter,
respectively, of land deposited along their
SUGGESTED ANSWER: Which of the following is an indispensable
Jenny can legally claim ownership of the lands by requirement in an action for quieting of title
right of accession (accretion) under Article 457 of involving real property? The plaintiff must
the Civil Code. The lands came into being over the
years through the gradual deposition of soil and silt A. be in actual possession of the property.
by the natural action of the waters of the river. B. be the registered owner of the property.
C. have legal or equitable title to the
Jessica cannot claim the two meter0wide strip of property.
land added to her land. Jessica constructed the D. be the beneficial owner of the property.
cement barrier two meters in front of her property
towards the river not to protect her land from the RECOVERY OF POSSESSION (2012)
destructive forces of the water but to trap the A plenary action for the recovery of the
alluvium. In order that the riparian owner may be possession of real estate, upon mere allegation
entitled to the alluvium the deposition must occur and proof of a better right thereto, and without
naturally without the intervention of the riparian allegation of proof of title. This action can only
owner (Republic v. CA, 139 SCRA 514). be brought after the expiration of one (1) year.
What action is being referred to?
b. If Jessica's and Jenny's properties are registered,
will the benefit of such registration extend to the A. Accion publiciana
increased area of their properties? (2%) B. Accion reinvindicatoria
C. Accion interdicta!
SUGGESTED ANSWER: D. Quieting of Title
No, the registration of Jessicas and Jennys
adjoining property does not automatically extend RECOVERY OR POSSESSION (2012)
to the accretion. They have to bring their lands A summary action to recover physical or
under the operation of the Torrens system of land material possession only and must be brought
registration following the procedure prescribed in within one (1) year from the time the cause of
P.D. No. 1529. action arises. What action is being referred to?

c. Assume the two properties are on a cliff adjoining A. Accion publiciana

the shore of Laguna Lake. Jessica and Jenny had a B. Accion reinvindicatoria
hotel built on the properties. They had the erath C. Accion interdictal
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D. Quieting of Title simply means that he is accepting the value of his

interest as equivalent to his share in the taxes and
RECOVERY OF OWNERSHIP (2012) expenses of preservation.
Action to recover real property based on
ownership. Here, the object is the recovery of CO-OWNERSHIP (2008)
the dominion over the property as owner. What Alex died without a will, leaving only an
action is being referred to? undeveloped and untitled lot in Taguig City. He is
survived by his wife and 4 children. His wife told the
A. Accion publiciana children that she is waiving her share in the
B. Accion reinvindicatoria property, and allowed Bobby, the eldest son who
C. Accion interdictal was about to get married, to construct his house on
D. Quieting of Title of the lot, without however obtaining the consent
of his siblings. After settlement of Alex's estate and
[NOTE: The correct Latin word is reivindicatoria.] partition among the heirs, it was discovered that
Bobby's house was constructed on the portion
VI. Co-ownership allocated to his sister, Cathy asked Bobby to
demolish his house and vacate the portion allotted
CO-OWNERS RIGHTS (2011) to her. In lieu of demolition, Bobby offered to
Raul, Ester, and Rufus inherited a 10-hectare land purchase from Cathy the lot portion on which his
from their father. Before the land could be house was constructed. At that time, the house
partitioned, however, Raul sold his hereditary right constructed was valued at P350.000.
to Raffy, a stranger to the family, for P5 million. Do
Ester and Rufus have a remedy for keeping the land a. Can Cathy lawfully ask for demolition of Bobby's
within their family? house? (3%)

A. Yes, they may be subrogated to Raffys right by SUGGESTED ANSWER:

reimbursing to him within the required time what Yes, Cathy can ask for the demolition of Bobbys
he paid Raul. house on the portion allotted to Cathy in the
B. Yes, they may be subrogated to Raffys right partition. The lot is presumed to be community
provided they buy him out before he registers property as it was acquired during the marriage.
the sale. Upon Alexs death there was created a co-
C. No, they can be subrogated to Raffys right only ownership by operation of law among the widow
with his conformity. and four children. (Art. 108, CC) Bobbys share is
D. No, since there was no impediment to Raul only an undivided interest of 1/10 of the entire lot.
selling his inheritance to a stranger. The widows share in the co-ownership is 610 of the
entire lot, of the lot being her share in the
CO-OWNER RENUNCIATION OF SHARE (2009) community property and 1/5 of Alexs share in the
The renunciation by a co-owner of his undivided other half, because she has the same share as one
share in the co-owned property in lieu of the of the four children. She has the financial majority or
performance of his obligation to contribute to taxes majority interest of the co-ownership.
and expenses for the preservation of the property
constitutes dacion en pago. True or False? Bobbys act of building on of the lot is an act
requiring the unanimous consent of all the co-
SUGGESTED ANSWER: owners since it is an act of alteration. Bobby only
True. Under the Civil Code, a co-owner may had the ideal share of 1/10 of the entire lot and
renounce his share in the co-owned property in lieu when he built his house on of the lot, he was
of paying for his share in the taxes and expenses for arrogating unto himself the right to partition the
the preservation of the co-owned property. In property and taking more than what he legally
effect, there is dacion en pago because the owner owns. The consent given by the widow to Bobbys
is discharging his monetary obligation by paying it act of building his house was legally insufficient. As
with his non-monetary interest in the co-owned a matter of right, Cathy can ask for the demolition
property. The fact he is giving up his entire interest of the house and the payment of damages.

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ALTERNATIVE ANSWER: refunded to the possessor in bad faith:

Art. 448 of the NCC is applicable by analogy
(Concepcion Fernandez del Campo v. Abcisa, 160 A. but he may remove the objects for which such
SCRA 379 [1988]). Pursuant thereto, Cathy is given, expenses have been incurred, provided that
two options: [1] to appropriate the house that the thing suffers no injury thereby, and that the
Bobby built, upon payment of indemnity; or [2] to lawful possessor does not prefer to retain them.
compel Bobby to buy the land, considering that its B. and he may not remove the objects for which
value is not considerably higher than the value of such expenses have been incurred.
the house. At this stage she is not given the option C. and he may not remove the objects for which
to demand demolition of the house. However, if she such expense~ have been incurred, unless he
has chosen to sell the land to Bobby and the latter pays the value they may have at the time he
does not or cannot buy the land, she can demand entered into possession.
the demolition of the house. D. but he may remove the objects for which such
expenses have been incurred.
b. Can Bobby legally insist on purchasing the land?
SUGGESTED ANSWER: Ciriaco Realty Corporation (CRC) sold to the
No, Bobby cannot legally insist on purchasing the spouses Del a Cruz a 500-square meter land (Lot A)
land. The rules on building, planting and sowing are in Paranaque. The land now has a fair market value
not applicable to co-ownership. The rules of P1,200,000. CRC likewise sold to the spouses
applicable to co-ownership are acts of alteration or Rodriguez, a 700-square meter land (Lot B) which is
acts of ownership on one hand and acts of mere adjacent to Lot A. Lot B has a present fair market
administration on the other. Even if it were value of P1,500,000.
applicable, Bobby acted in bad faith and hence,
demolition is one of the three options open to an The spouses Dela Cruz constructed a house on Lot
owner. It is the owner of the land, not the builder, B, relying on the representation of the CRC sales
planter or sower who has the options even if both agent that it is the property they purchased. Only
acted in bad faith or good faith. upon the completion of their house did the spouses
Dela Cruz discover that they had built on Lot B
owned by the spouses Rodriguez, not on Lot A that
VII. Possession they purchased. They spent P 1,000,000 for the
Which of the following statements is wrong? As their lawyer, advise the spouses Dela Cruz on
their rights and obligations under the given
A. The possessor in bad faith shall reimburse the circumstances, and the recourses and options
fruits received and those which the legitimate open to them to protect their interests.
possessor could have received.
B. The possessor in bad faith has a right of SUGGESTED ANSWER:
reimbursement for necessary expenses and Based on the facts as stated, the spouses Dela Cruz
those for the production, gathering and as builders and the spouses Rodriguez as land
preservation of the fruits. owners, are both in good faith. The spouses Dela
C. The possessor in bad faith is not entitled to a Cruz are builders in good faith because before
refund of ornamental expenses. constructing the house, they exercised due
D. The possessor in bad faith is entitled to a refund diligence by asking the agent of CRC the location
of useful expenses. of Lot A, and they relied on the information given
by the agent who is presumed to know the identity
REIMBURSEMENT OF EXPENSES (2012) of the lot purchased by the Dela Cruz spouses
Which phrase most accurately completes the (Pleasantville v. CA, 253 SCRA 10 [1996]). On the
statement - The expenses incurred in improvements other hand, there is no showing that the
for pure luxury or mere pleasure shall not be landowners; spouses Rodriguez; acted in bad faith.
The facts do not show that the building was done
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with their knowledge and without opposition on huts, and demanded that he be paid his share in
their part (Art. 453, Civil Code). Good faith is always the proceeds of the harvest. Marciano claims that
presumed (Art. 527, Civil Code). under the Civil Code, the alluvium belongs to him
as a registered riparian owner to whose land the
The owner of the land on which anything bas been accretion attaches, and that his right is enforceable
built, sown or planted in good faith shall have the against the whole world.
right: to appropriate as his own the works after
payment of the indemnity provided for in Articles a. Is Marciano correct? Explain. (3%)
546 and 548, or to oblige the one who built to pay
the price of the land. SUGGESTED ANSWER:
Marciano's contention is correct. Since the
However, the builder cannot be obliged to buy the accretion was deposited on his land by the action
land if its value is considerably more than that of of the waters of the river and he did not construct
the building. In such case, he shall pay reasonable any structure to increase the deposition of soil and
rent if the owner of the land does not choose to silt, Marciano automatically owns the accretion. His
appropriate the building or trees after proper real right of ownership is enforceable against the
indemnity (Art. 448, Civil Code). whole world including Ulpiano and his two married
children. Although Marciano's land is registered, the
The house constructed by the spouses Dela Cruz is 3 hectares land deposited through accretion was
considered useful expense, since it increased the not automatically registered. As unregistered land,
value of the lot. As such, should the spouses it is subjective to acquisitive prescription by third
Rodriguez decide to appropriate the house, the persons.
spouses Dela Cruz are entitled to the right of
retention pending reimbursement of the expenses Although Ulpiano and his children live in the 3
they incurred or the increase in value which the hectare unregistered land owned by Marciano,
thing may have acquired by reason of the they are farmworkers; therefore they are possessors
improvement (Art. 546, Civil Code). Thus, the not in the concept of owners but in the concept of
spouses Dela Cruz may demand P1,000,000 as mere holders. Even of they possessed the land for
payment of the expenses in building the house or more than 30 years, they cannot become the
increase in value of the land because of the house owners thereof through extraordinary acquisitive
as a useful improvement, as may be determined by prescription, because the law requires possession in
the court from the evidence presented during the the concept of owner. Payment of taxes and tax
trial (Depra vs. Dumlao, 136 SCRA 475 [1985]; declaration are not enough to make their
Technogas Phils. vs. CA, 268 SCRA 5 [1997]). possession one in the concept of owner. They must
repudiate the possession in the concept of holder
POSSESSION (2009) by executing unequivocal acts of repudiation
Marciano is the owner of a parcel of land through amounting to ouster of Marciano, known to
which a river runs out into the sea. The land had Marciano and must be proven by clear and
been brought under the Torrens System, and is convincing evidence. Only then would his
cultivated by Ulpiano and his family as farmworkers possession become adverse.
therein. Over the years, the river has brought silt and
sediment from its sources up in the mountains and b. What rights, if any, does Ulpiano have against
forests so that gradually the land owned by Marciano? Explain. (3%)
Marciano increased in area by three hectares.
Ulpiano built three huts on this additional area, SUGGESTED ANSWER:
where he and his two married children live. On this Although Ulpiano is a possessor in bad faith,
same area, Ulpiano and his family planted peanuts, because he knew he does not own the land, he will
monggo beans and vegetables. Ulpiano also lose the three huts he built in bad faith and make
regularly paid taxes on the land, as shown by tax an accounting of the fruits he has gathered, he has
declarations, for over thirty years. the right to deduct from the value of the fruits the
expenses for production, gathering and
When Marciano learned of the increase in the size preservation of the fruits (Article 443, NCC).
of the land, he ordered Ulpiano to demolish the
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He may also ask for reimbursement of the taxes he planter, sower in bad faith. He can also be made to
has paid, as these are charges on the land owned account for the fruits but he may deduct expenses
by Marciano. This obligation is based on a quasi- for production gathering and preservation of the
contract (Article 2175, NCC). fruits (Art. 443, CC).

POSSESSION (2008) c. If there are standing crops on the property when

Anthony bought a piece of untitled agricultural Carlo recovers possession, can Carlo appropriate
land from Bert. Bert, in turn, acquired the property them? (2%)
by forging Carlo's signature in a deed of sale over
the property. Carlo had been in possession of the SUGGESTED ANSWER:
property for 8 years, declared it for tax purposes, The value of the standing crops must be prorated
and religiously paid all taxes due on the property. depending upon the period of possession and the
Anthony is not aware of the defect in Bert's title, but period of growing and producing the fruits. Anthony
has been in actual physical possession of the is entitled to a part of the net harvest and a part of
property from the time he bought it from Bert, who the expenses of cultivation in proportion to his
had never been in possession of the property for period of possession. Carlo may appropriate the
one year. respective parts subject to prorating the respective
periods of possession. However, Carlo may allow
a. Can Anthony acquire ownership of the property Anthony to gather these growing fruits as an
by acquisitive prescription? How many more years indemnity for the expenses of cultivation. If Anthony
does he have possess it to acquire ownership? (2%) refuses to accept this concession, he shall lose the
right to indemnity under Art. 433 (Art. 545, par. 3,
Yes, Anthony can acquire ownership of the
property by ordinary acquisitive prescription which VIII. Usufruct
requires just title and good faith (Art. 1117, CC).
There was just title because of deed of sale was USUFRUCT (2011)
issued in his favour even though it was forged, X, the owner, constituted a 10-year usufruct on his
which fact he was not aware of. He needs to land as well as on the building standing on it in Ys
possess the land in good faith and in the concept favor. After flood totally destroyed the building 5
of owner for a total of ten years in order to acquire years later, X told Y that an act of God terminated
ownership. Since Anthony possessed the land for the usufruct and that he should vacate the land. Is
only one year, he has not completed the ten-year X, the owner of the land, correct?
period. Even if Anthony tacks the 8-year period of
possession by Carlo who in the deed of sale is A. No, since the building was destroyed through
supposed to be his grantor or predecessor in no fault of Y.
interest (Article 1138 [1] CC), the period is still of ten B. No, since Y still has the right to use the land and
years. the materials left on it.
C. Yes, since Y cannot use the land without the
b. If Carlo is able to legally recover his property, can building.
he require Anthony to account for all the fruits he D. Yes, since the destruction of the building
has harvested from the property while in without the Xs fault terminated the usufruct.
possession? (2%)

IX. Easements
Since Anthony is a possessor in good faith, Anthony
cannot be made to account for the fruits he RIGHT OF WAY (2010)
gathered before he was served with summons. A Franz was the owner of Lot E which was surrounded
possessor in good faith is entitled to the fruits by four (4) lots one of which Lot C he also
received before the possession was legally owned. He promised Ava that if she bought Lot E,
interrupted by the service of summons (Art. 544, he would give her a right of way in Lot C.
CC). After Anthony was served with summons, he Convinced, Ava bought Lot E and, as promised,
became a possessor in bad faith and a builder, Franz gave her a right of way in Lot C. Ava
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cultivated Lot E and used the right of way granted from any of the owners of Lots A, B, and D, can she
by Franz. Ava later found gainful employment do that? Explain. (2.5%)
abroad. On her return after more than 10 years, the
right of way was no longer available to her SUGGESTED ANSWER:
because Franz had in the meantime sold Lot C to YES. Ava has the option to demand a right of way
Julia who had it fenced. on any of the remaining lots of Franz more so after
Franz sold Lot C to Julia. The essential elements of a
a. Does Ava have a right to demand from Julia the legal right of way under Article 649 and 650 of the
activation of her right of way? Explain. (2.5%) New Civil Code


YES. Ava has the right to demand from Julia the YES. Ava has the option to demand a right of way
activation of the right of way, for the following from the other lots. The law provides that whatever
reasons: a piece of land acquired by sale, exchange or
1. An easement of right of way is a real right partition is surrounded by other estates of the
which attaches to, and is inseparable from, the vendor, exchanger, or co-owner, he shall be
estate to which it belongs. obliged to grant a right of way without indemnity.
2. The sale of the property includes the easement (Art 652, NCC).
or servitude, even if the deed of sale is silent on
3. The vendee of the property in which a servitude No. There was merely a promise to Ava that a right
or easement exists cannot close or put up of way shall be granted to her in Lot C if Ava
obstructions thereon to prevent the dominant purchased lot E. The promise was not reduced into
estate from using it. writing (Obra v. Baldria, 529 SCRA 621 [2007]).
4. Avas working abroad for more than ten (10) Hence, it was not or could not have been
years should not be construed as non-user, registered as to warn buyers of Lot C about the
because it cannot be implied from the facts that existence of the easement on the property. Not
she or those whom she left behind to cultivate the having been annotated on the TCT to Lot C, the
lot no longer use the right of way. buyer acquired Lot C free from such right of way
Note: Since a right of way is a discontinuous granted to Ava.
easement, the period of 10 years of non-user shall
be computed from the day it ceased to be used RIGHT OF WAY (2013)
under Art 6341(2) CC. In 2005, Andres built a residential house on a lot
5. Renunciation or waiver of an easement must whose only access to the national highway was a
be specific, clear, express and made in a public pathway crossing Brando's property. Andres and
instrument in accordance with Article 1358 of the others have been using this pathway (pathway A)
New Civil Code. since 1980.

ANOTHER SUGGESTED ANSWER: In 2006, Brando fenced off his property, thereby
YES. Ava has the right to demand from Julia the blocking Andres' access to the national highway.
activation of her right of way. A voluntary Andres demanded that part of the fence be
easement of right of way, like any other contract, removed to maintain his old access route to the
could be extinguished only by mutual agreement highway (pathway A), but Brando refused, claiming
or by renunciation of the owner of the dominant that there was another available pathway
estate. Also, like any other contract, an easement is (pathway B) for ingress and egress to the highway.
generally effective between parties, their heirs and Andres countered that pathway B has defects, is
assigns, except in case where the rights and circuitous, and is extremely inconvenient to use.
obligations arising from the contract are not
transmissible by their nature, or by stipulation or by To settle their dispute, Andres and Brando hired
provision of law (Unisource Commercial v. Chung, Damian, a geodetic and civil engineer, to survey
593 SCRA 530 [2009]). and examine the two pathways and the
surrounding areas, and to determine the shortest
b. Assuming Ava opts to demand a right of way and the least prejudicial way through the servient
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estates. After the survey, the engineer concluded Brandos lot is burdened as a servient estate by a right of
that pathway B is the longer route and will need way as a servient estate. If there is such an easement
improvements and repairs, but will not significantly burdening Brandos lot, was it created as a legal
easement or as a voluntary easement. If the use of
affect the use of Brando's property. On the other
Pathway A was only by tolerance then Brando may close
hand, pathway A that had 1ong been in place, is
it. Andres must ask for the constitution of a legal
the shorter route but would significantly affect the easement through Brandos lot by proving the four
use of Brando's property. requisites required Articles 649 and 650, Civil Code.]

In light of the engineers findings and the ACQUISITIVE PRESCRIPTION (2009)

circumstances of the case, resolve the parties right Acquisitive prescription of a negative easement
of way dispute. runs from the time the owner of the dominant
estate forbids, in a notarized document, the owner
SUGGESTED ANSWER: of the servient estate from executing an act which
Andres is not entitled to the easement of right of would be lawful without the easement. True or
way for Pathway A, Pathway B must be used. The False?
owner of a dominant estate may validly obtain a
com1pulsory right of way only after he has SUGGESTED ANSWER:
established the existence of four requisites, to wit: True. in negative easements, acquisitive prescription
the (dominant) estate is surrounded by other runs from the moment the owner of the dominant
immovable and is without adequate outlet to a estate forbade, by an instrument acknowledged
public highway; after payment of the proper before a notary public, the owner of the servient
indemnity the isolation was not due to the estate from executing an act which would be
proprietors own acts; and the right of way claimed lawful without the easement (Art. 621, NCC).
is at a point least prejudicial to the servient estate,
and insofar as consistent with this rule, where the X. Nuisance
distance from the dominant estate to the public
highway may be the shortest (Art. 650, Civil Code). NUISANCE ATTRACTIVE NUISANCE (2011)
Virgilio owned a bare and simple swimming pool in
However, the Supreme Court has consistently ruled his garden. MB, a 7 -year old child, surreptitiously
that in case both criteria cannot be complied with, entered the garden and merrily romped around the
the right of way shall be established at the point ledges of the pool. He accidentally tripped, fell into
least prejudicial to the servient estate. the pool, and drowned. MBs parents sued Virgilio
for damages arising from their childs death,
The first and fourth requisites are not complied with. premised on the principle of attractive nuisance.
First, there is another available outlet to the national Is Virgilio liable for the death of MB?
highway (Pathway B). Second, the right of way
obtained (Pathway A) is not the least prejudicial to A. No, the child was 7 years old and knew the
Brando's property, as evidenced by the reports of dangers that the pool offered.
the geodetic and civil engineer. B. Yes, being an attractive nuisance, Virgilio had
the duty to prevent children from coming near
When there is already an existing adequate outlet it.
from the dominant estate to a public highway, C. No, since the pool was bare and had no
even if the said outlet, for one reason or another, enticing or alluring gadgets, floats, or devices in
be inconvenient, the need to open up another it that would attract a 7-year old child.
servitude is entirely unjustified (Costabella Corp. v. D. Yes, since Virgilio did not cover the swimming
CA, G.R. No. 80511, January 25, 1991). The rule that pool while not in use to prevent children from
the easement of right of way shall be established at falling into it.
the point least prejudicial to the servient estate is
controlling (Quimen v. Quimen), (CA, G.R. No.
112331, May 29, 1996). XI. Modes of Acquiring Ownership

[NOTE: It is not clear from the problem if there exists an POSSESSION IN THE CONCEPT OF OWNER (2011)
easement in favor of the lot belonging to Andres and if The residents of a subdivision have been using an
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open strip of land as passage to the highway for Moreover, mortis causa donations should follow the
over 30 years. The owner of that land decided, formalities of a will (Art. 728, Civil Code). Here, there
however, to close it in preparation for building his is no showing that such formalities were followed.
house on it. The residents protested, claiming that Thus, it is favorable to Jennifer that the deed is a
they became owners of the land through donation inter vivos.
acquisitive prescription, having been in possession
of the same in the concept of owners, publicly, Furthermore, what is most significant in determining
peacefully, and continuously for more than 30 the type of donation is the absence of stipulation
years. Is this claim correct? that the donor could revoke the donation; on the
contrary, the deeds expressly declare them to be
A. No, the residents have not been in continuous irrevocable, a quality absolutely incompatible
possession of the land since they merely passed with the idea of conveyances mortis causa where
through it in going to the highway. revocability is the essence of the act, to the extent
B. No, the owner did not abandon his right to the that a testator cannot lawfully waive or restrict his
property; he merely tolerated his neighbors use right of revocation. The provisions of the deed of
of it for passage. donation which state that the same will only take
C. Yes, residents of the subdivision have become effect upon the death of the donor and that there
owners by acquisitive prescription. is a prohibition to alienate, encumber, dispose, or
D. Yes, community ownership by prescription sell the same should be harmonized with its express
prevails over private claims. irrevocability (Austria-Magat v. CA, G.R. No. 106755,
February 1, 2002).
Josefa executed a deed of donation covering a ALTERNATIVE ANSWER:
one-hectare rice land in favor of her daughter, The donation is a donation mortis causa. The deed
Jennifer. The deed specifically provides that: clearly states that the donation shall take effect
upon the death of the donor, Josefa. The donor,
"For and in consideration of the love and service moreover, retained ownership of the subject
Jennifer has shown and given to me, I hereby freely, property as it was declared that the property
voluntarily and irrevocably donate to her my one- cannot be alienated, encumbered, sold or
hectare rice land covered by TCT No. 11550, disposed of while the donor is still alive.
located in San Fernando, Pampanga. This donation
shall take effect upon my death." As the donation is in the nature of a mortis causa
disposition, the formalities of a will should have
The deed also contained Jennifer's signed been complied with under Article 728 of the Civil
acceptance, and an attached notarized Code; otherwise, the donation is void and would
declaration by Josefa and Jennifer that the land produce no effect (The National Treasurer Of The
will remain in Josefa's possession and cannot be Philippines v. Vda. De Meimban, G.R. No. -61023,
alienated, encumbered, sold or disposed of while August 22, 1984).
Josefa is still alive.
Advise Jennifer on whether the deed is a donation Donation is perfected from the moment ---
inter vivos or mortis causa and explain the reasons
supporting your advice. (8%) A. the donee accepts the donation.
B. the donor executes the deed of donation.
SUGGESTED ANSWER: C. the donor knows of the donee's acceptance
The donation is a donation inter vivos. When the even if the latter has not received the copy of
donor intends that the donation shall take effect the deed of donation.
during the lifetime of the donor, though the D. the donee confirms that the donor has learned
property shall not be delivered till after the donor's the former'sacceptance.
death, this shall be a donation inter vivos (Art. 729,
X and Y were to marry in 3 months. Meantime, to
The Civil, Code favors inter vivos transmissions. express his affection, X donated a house and lot to
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Y, which donation X wrote in a letter to Y. Y wrote

back, accepting the donation and took possession Since the donation covered an immovable
of the property. Before the wedding, however, Y property, the donation and the acceptance must
suddenly died of heart attack. Can Ys heirs get the be in a public document. An e-mail is not a public
property? document. Hence No. 1 is false.

A. No, since the marriage did not take place. No. 2 and No. 4 are both false. The acceptance by
B. Yes, since all the requisites of a donation of an the donees father alone or mother alone, even
immovable are present. though in a public document, is not sufficient
C. No, since the donation and its acceptance are because the mother and the father did not have a
not in a public instrument. special power of attorney for the purpose. Under
D. Yes, since X freely donated the property to Y Article 745 (NCC), the done must accept the
who became its owner. donation personally, or through an authorized
person with a special power of attorney for the
DONATION VALIDITY (2012) purpose; otherwise, the donation shall be void.
Ernesto donated a mobile phone worth P32,000 to
Hubert orally and delivered the unit to Hubert who No. 3 is also false. B cannot accept the donation
accepted. Which statement is most accurate? anytime at his convenience. Under Article 749
NCC, the done may accept the donation only
A. The donation is void and Ernesto may get the during the lifetime of the donor.
mobile phone back.
B. The donation is void but Ernesto cannot get the DONATION REDUCTION (2012)
mobile phone back. The following cannot ask for the reduction of
C. The donation is voidable and may be anulled. inofficious donation, except:
D. The donation is valid.
A. Creditors of the deceased
DONATION VALIDITY (2012) B. Devisees or legatees
Which of the following is not a requisite for a valid C. Compulsory heirs of the donor
donation propter nuptias? D. The surviving spouse of the donee.

A. The donation must be made before the DONATION REVERSION (2011)

celebration of the marriage. Lucio executed a simple deed of donation of P50
B. The donation shall be automatically revoked in million on time deposit with a bank in favor of A, B,
case of non-celebration of the marriage. C, D, and E, without indicating the share of each
C. The donation must be made in consideration donee. All the donees accepted the donation in
of the marriage. writing. A, one of the donees, died. Will B, C, D, and
D. The donation must be made in favour of one or E get As share in the money?
both of the future spouses.
DONATION VALIDITY (2010) A. Yes, accretion will automatically apply to the
A executed a Deed of Donation in favor of B, a joint-donees in equal shares.
bachelor, covering a parcel of land valued at P1 B. Yes, since the donors intention is to give the
million. B was, however, out of the country at the whole of P50 million to the joint-donees in equal
time. For the donation to be valid, (1%) shares.
C. No, As share will revert to the donor because
A. B may e-mail A accepting the donation. accretion applies only if the joint-donees are
B. The donation may be accepted by Bs father spouses.
with whom he lives. D. No, As share goes to his heirs since the
C. B can accept the donation anytime convenient donation did not provide for reversion to donor.
to him.
D. Bs mother who has a general power of DONATION WHO MAY DONATE (2011)
attorney may accept the donation for him. Who can make a donation?
E. None of the above is sufficient to make Bs
acceptance valid A. All persons who can enter into contracts and
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dispose of their property. impaired the support due to himself and his
B. All persons who are of legal age and suffer from dependents.
no civil interdiction.
C. All persons who can make a last will and PRESCRIPTION
D. All persons, whether natural or artificial, who
own property.
I. Definition

DONATION (2011) II. No prescription applicable

In gratitude, the grooms parents made a donation
of a property in writing to the brides parents shortly III. Prescription or limitation of actions
before their childrens wedding. The donation was
accepted. What is the nature of the donation? VERBAL AGREEMENT (2011)
X bought a land from Y, paying him cash. Since
A. It is an ordinary donation since it was not given they were friends, they did not execute any
to the bride or groom. document of sale. After 7 years, the heirs of X asked
B. It is donation propter nuptias since it was given Y to execute a deed of absolute sale to formalize
with the marriage in mind. the verbal sale to their father. Unwilling to do so, Xs
C. It is an indirect donation propter nuptias since heirs filed an action for specific performance
the bride would eventually inherit the property against Y. Will their action prosper?
from her parents.
D. It is a remunatory donation. A. No, after more than 6 years, the action to
enforce the verbal agreement has already
Rex, a philanthropist, donated a valuable lot to the B. No, since the sale cannot under the Statute of
municipality on the condition that it will build a Frauds be enforced.
public school on such lot within 2 years from its C. Yes, since X bought the land and paid Y for it.
acceptance of the donation. The municipality D. Yes, after full payment, the action became
properly accepted the donation but did not yet imprescriptible.
build the public school after 2 years. Can Rex
revoke the donation? RECONVEYANCE (2011)
An action for reconveyance of a registered piece
A. Yes, since the donation is subject to a resolutory of land may be brought against the owner
condition which was not fulfilled. appearing on the title based on a claim that the
B. No, but Rex is entitled to recover the value of latter merely holds such title in trust for the plaintiff.
the land from the municipality. The action prescribes, however, within 10 years from
C. No, the transfer of ownership has been the registration of the deed or the date of the
completed. issuance of the certificate of title of the property as
D. Yes, the donation is not deemed made until the long as the trust had not been repudiated. What is
suspensive condition has been fulfilled. the exception to this 10-year prescriptive period?

DONATION INSUFFICIENT FUNDS (2011) A. When the plaintiff had no notice of the deed or
When the donor gives donations without reserving the issuance of the certificate of title.
sufficient funds for his support or for the support of B. When the title holder concealed the matter
his dependents, his donations are from the plaintiff.
C. When fortuitous circumstances prevented the
A. Rescissible, since it results in economic lesion of plaintiff from filing the case sooner.
more than 25% of the value of his properties. D. When the plaintiff is in possession of the
B. Voidable, since his consent to the donation is property.
vitiated by mindless kindness.
C. Void, since it amounts to wanton expenditure REVOCATION OF DONATION (2011)
beyond his means. What is the prescriptive period for filing an action
D. Reducible to the extent that the donations for revocation of a donation based on acts of
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ingratitude of the donee? C. the obligee may enforce through the court if
violated by the obligor.
A. 5 years from the perfection of the donation. D. cannot be judicially enforced but authorizes the
B. 1 year from the perfection of the donation. obligee to retain the obligors payment or
C. 4 years from the perfection of the donation. performance.
D. Such action does not prescribe.
V. Sources of Obligations
SOURCES (2012)
I. Definition It is a juridical relation arising from lawful, voluntary
and unilateral acts based on the principle that no
II. Elements of an Obligation one should unjustly enrich himself at the expense of
The following are the elements of an obligation, A. Quasi-contract
except: B. Quasi-delict
C. Contract
A. Juridical/Legal Tie D. Delict
B. Active subject
C. Passive subject VI. Nature and Effect of Obligations
D. Consideration
III. Different Kinds of Prestations This term refers to a delay on the part of both the
debtor and creditor in reciprocal obligations.
It is a conduct that may consist of giving, doing, or A. Mora accipiendi
not doing something. B. Mora solvendi
C. Compensation morae
A. Obligation D. Solution indibiti
B. Juridical necessity
D. Contract The following are the requisites of mora solvendi,
IV. Classification of Obligations
A. Obligation pertains to the debtor and is
NATURAL OBLIGATION (2012) determinate, due, demandable, and
An obligation which is based on equity and natural liquidated.
law is known as: B. Obligation was performed on its maturity date.
C. There is judicial or extrajudicial demand by the
A. pure creditor.
B. quasi-contract D. Failure of the debtor to comply with such
C. civil demand.
D. natural
NATURAL OBLIGATION (2011) It is an intentional evasion of the faithful
A natural obligation under the New Civil Code of performance of the obligation.
the Philippines is one which
A. Negligence
A. the obligor has a moral obligation to do, B. Fraud
otherwise entitling the obligee to damages. C. Delay
B. refers to an obligation in writing to do or not to D. Mistake
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FORTUITIOUS EVENT REQUISITES (2012) made within a month. Gary's promise of delivery
The following are the requisites of fortuitous event, on a "best effort" basis made the delivery
except: uncertain. The term, therefore, was ambiguous.
B. No. Homer was not justified in refusing to
A. Cause is independent of the will of the debtor. accept the tobacco leaves. He consented to
B. The event is unforeseeable/unavoidable. the terms and conditions of the sale and must
C. Occurrence renders it absolutely impossible for abide by it. Obligations arising from contract
the debtor to fulfill his obligation in a normal have the force of law between the contracting
manner; impossibility must be absolute not parties.
partial, otherwise not force majeure. C. Yes. Homer was justified in his refusal to accept
D. Debtor contributed to the aggravation of the the delivery. The contract contemplates an
injury to the creditor. obligation with a term. Since the delivery was
made after 30 days, contrary to the terms
FORTUITIOUS EVENT LIABILITY (2012) agreed upon, Gary could not insist that Homer
A debtor may still be held liable for loss or damages accept the tobacco leaves.
even if it was caused by a fortuitous event in D. No. Homer was not justified in refusing to
any of the following instances, except: accept the tobacco leaves. There was no term
in the contract but a mixed condition. The
A. The debtor is guilty of dolo, malice or bad faith, fulfillment of the condition did not depend
has promised the same thing to two or more purely on Gary's will but on other factors, e.g.,
persons who do not have the same interest the shipping company and the government.
B. The debtor contributed to the loss. Homer should comply with his obligation.
C. The thing to be delivered is generic.
D. The creditor is guilty of fraud, negligence or It is clear under the facts that the period of delivery
delay or if he contravened the tenor of the of the tobacco leaves was not guaranteed. Gary
obligation. anticipated other factors which may prevent him
from making the delivery within a month. True
VII. Kinds of Civil Obligations enough, transportation problems and government
red tape did. Such slight delay was, thus,
Gary is a tobacco trader and also a lending
investor. He sold tobacco leaves to Homer for Obligations arising from contract have the force of
delivery within a month, although the period for law between the contracting parties and should be
delivery was not guaranteed. Despite Gary's efforts complied with in good faith (Art. 1160, Civil Code).
to deliver on time, transportation problems and
government red tape hindered his efforts and he b. Can Gary compel Isaac to pay his loan even
could only deliver after 30 days. Homer refused to before the end of the two-year period?
accept the late delivery and to pay on the ground
that the agreed term had not been complied with. A. Yes, Gary can compel Isaac to immediately
As lending investor, Gary granted a P1,000,000 loan pay the loan. Noncompliance with the
to Isaac to be paid within two years from execution promised guaranty or security renders the
of the contract. As security for the loan, Isaac obligation immediately demandable. Isaac lost
promised to deliver to Gary his Toyota Innova within his right to make use of the period.
seven (7) days, but Isaac failed to do so. Gary was B. Yes, Gary can compel Isaac to immediately
thus compelled to demand payment for the loan pay the loan. The delivery of the Toyota Innova
before the end of the agreed two-year term. is a condition for the loan. Isaac's failure to
deliver the car violated the condition upon
a. Was Homer justified in refusing to accept the which the loan was granted. It is but fair for
tobacco leaves? Gary to demand immediate payment.
C. No, Gary cannot compel Isaac to immediately
A. Yes. Homer was justified in refusing to accept pay the loan. The delivery of the car as security
the tobacco leaves. The delivery was to be for the loan is an accessory contract; the
principal contract is still the P1,000,000 loan.
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Thus, Isaac can still make use of the period. A. Buko can ask for reimbursement from Fermin
D. No, Gary cannot compel Isaac to immediately and Toti.
pay the loan. Equity dictates that Gary should B. Buko can sue Fermin and Toti for damages.
have granted a reasonable extension of time C. Buko can sue for rescission ..
for Isaac to deliver his Toyota Innova. It would D. Buko can claim a refund from Ayee.
be unfair and burdensome for Isaac to pay the
P1,000,000 simply because the promised SOLIDARY OBLIGATION (2012)
security was not delivered. Buko, Fermin and Toti bound themselves solidarily to
pay Ayee the sum o'f P10.000.00. When the
Under Article 1198 (2) of the Civil Code, the debtor obligation became due and demandable, Ayee
shall lose every right to make use of the period sued Buko for the payment of the P10,000.00. Buko
when he does not furnish to the creditor the moved to dismiss on the ground that there was
guaranties or securities which he has promised. failure to implead Fermin and Toti who are
indispensable parties. Will the motion to dismiss
VIII. Joint and Solidary Obligation prosper? Why?

SOLIDARY OBLIGATION (2013) A. Yes, because Fermin and Toti should have been
A, B, C and D are the solidary debtors of X for impleaded as their obligation is solidary.
P40,000. X released D from the payment of his share B. No, because the creditor may proceed against
of P10,000. When the obligation became due and any one of the solidary debtors or some or all of
demandable, C turned out to be insolvent. them simultaneously.
C. No, because a motion to dismiss is a prohibited
Should the share of the insolvent debtor C be pleading.
divided only between the two other remaining D. Yes, because Fermin and Toti should also pay
debtors, A & B? (1%) their share of the obligation.

A. Yes. Remission of Ds share carries with it total SOLIDARY OBLIGATION (2012)

extinguishment of his obligation to the benefit of Buko, Fermin and Toti are solidary debtors of Ayee.
the solidary debtors. Twelve (12) years after the obligation became due
B. Yes. The Civil Code recognizes remission as a and demandable, Buko paid Ayee and later on
mode of extinguishing an obligation. This clearly asked for reimbursement of Fermin's and Toti's
applies to D. shares. Is Buko correct? Why?
C. No. The rule is that gratuitous acts should be
restrictively construed, allowing only the least A. No, because the obligation has already
transmission of rights. prescribed.
D. No, as the release of the share of one debtor B. Yes, because the obligation is solidary.
would then increase the burden of the other C. No, because .in solidary obligation any one of
debtors without their consent. the solidary debtors can pay the entire debt.
D. Yes, because Fermin and Toti will be unduly
When one of the solidary debtors cannot, because enriched at the expense of Buko.
of his insolvency, reimburse his share to the debtor
paying the obligation, such share shall be borne by SOLIDARY OBLIGATION (2012)
all his co-debtors, in proportion to the debt of each Buko, Fermin and Toti are solidary debtors under a
(Art. 1217, Civil Code). Additionally, D was released loan obligation of P300,000.00 which has fallen due.
only from his share of P10,000, not from the solidary The creditor has, however, condoned Fermin'sentire
tie that binds him to A, B, and C. share in the debt. Since Toti has become insolvent,
the creditor makes a demand on Buko to pay the
SOLIDARY OBLIGATION (2012) debt. How much, if any, may Buko be compelled to
Buko, Fermin and Toti bound themselves solidarily to pay?
pay Ayee the amount of P5,000.00. Suppose Buko
paid the obligation, what is his right as against his A. P200,000.00
co-debtors? B. P300.000.00
C. P100,000.00
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D. P150,000.00 B. No, since Rodrigo, the other solidary creditor,

already made a prior demand for payment
Roy and Carlos both undertook a contract to C. Yes, since the payment covers the whole
deliver to Sam in Manila a boat docked in Subic. obligation.
Before they could deliver it, however, the boat sank D. Yes, since Fernando was a solidary creditor,
in a storm. The contract provides that fortuitous payment to him extinguished the obligation.
event shall not exempt Roy and Carlos from their
obligation. Owing to the loss of the motor boat, ESTINGUISHMENT PAYMENT (2011)
such obligation is deemed converted into one of Allan bought Billys property through Carlos, an
indemnity for damages. Is the liability of Roy and agent empowered with a special power of
Carlos joint or solidary? attorney (SPA) to sell the same. When Allan was
ready to pay as scheduled, Billy called, directing
A. Neither solidary nor joint since they cannot Allan to pay directly to him. On learning of this,
waive the defense of fortuitous event to which Carlos, Billy's agent, told Allan to pay through him as
they are entitled. his SPA provided and to protect his commission.
B. Solidary or joint upon the discretion of Sam. Faced with two claimants, Allan consigned the
C. Solidary since Roy and Carlos failed to perform payment in court. Billy protested, contending that
their obligation to deliver the motor boat. the consignation is ineffective since no tender of
D. Joint since the conversion of their liability to one payment was made to him. Is he correct?
of indemnity for damages made it joint.
A. No, since consignation without tender of
IX. Extinguishment of Obligations payment is allowed in the face of the
conflicting claims on the plaintiff.
ESTINGUISHMENT PAYMENT (2012) B. Yes, as owner of the property sold, Billy can
Dina bought a car from Jai and delivered a check demand payment directly to himself.
in payment of the same. Has Dina paid the C. Yes, since Allan made no announcement of the
obligation? Why? tender.
D. Yes, a tender of payment is required for a valid
A. No, not yet. The delivery of promissory notes consignation.
payable to order, or bills of exchange or other
mercantile documents shall produce the effect EXTINGUISHMENT PAYMENT (2011)
of payment only when they have been cashed, Anne owed Bessy P1 million due on October 1, 2011
or when through the fault of the creditor they but failed to pay her on due date. Bessy sent a
have been impaired. demand letter to Anne giving her 5 days from
B. Yes, because a check is a valid legal tender of receipt within which to pay. Two days after receipt
payment. of the letter, Anne personally offered to pay Bessy in
C. It depends. If the check is a manager'scheck or manager's check but the latter refused to accept
cashier's check it will produce the effect of the same. The 5 days lapsed. May Annes
payment. If it's an ordinary check, no payment. obligation be considered extinguished?
D. Yes, because a check is as good as cash. A. Yes, since Bessys refusal of the managers
check, which is presumed funded, amounts to a
ESTINGUISHMENT PAYMENT (2011) satisfaction of the obligation.
Rudolf borrowed P1 million from Rodrigo and B. No, since tender of payment even in cash, if
Fernando who acted as solidary creditors. When refused, will not discharge the obligation
the loan matured, Rodrigo wrote a letter to Rudolf, without proper consignation in court.
demanding payment of the loan directly to him. C. Yes, since Anne tendered payment of the full
Before Rudolf could comply, Fernando went to see amount due.
him personally to collect and he paid him. Did D. No, since a managers check is not considered
Rudolf make a valid payment? legal tender in the Philippines.

A. No, since Rudolf should have split the payment EXTINGUISHMENT PAYMENT (2008)
between Rodrigo and Fernando. Felipe borrowed $100 from Gustavo in 1998, when
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the Phil P - US$ exchange rate was P56 - US$1. On instead? (1%)
March 1, 2008, Felipe tendered to Gustavo a
cashier's check in the amount of P4,135 in payment SUGGESTED ANSWER:
of his US$ 100 debt, based on the Phil P - US$ Yes. Felipe can compel Gustavo to pay US $100
exchange rat at that time. Gustavo accepted the instead. Under the prior law, RA 529, as amended
check, but forgot to deposit it until Sept. 12, 2008. RA 4100, payment can only be in Philippine
His bank refused to accepted the check because it currency as it would be against public policy, null
had become stale. Gustavo now wants Felipe to and void and of no effect. However, under RA
pay him in cash the amount of P5,600. Claiming 8183, payment may be made in the currency
that the previous payment was not in legal tender, agreed upon by the parties, and the rate of
and that there has been extraordinary deflation exchange to be followed is at the time of payment.
since 1998, and therefore, Felipe should pay him the (C.F. Sharp & Co. Inc v. Northwest Airlines, Inc., 381
value of the debt at the time it was incurred. Felipe SCRA 314 [2002]).
refused to pay him again, claiming that Gustavo is
estopped from raising the issue of legal tender, EXTINGUISHMENT PAYMENT (2013)
having accepted the check in March, and that it Litos failure to pay led to the extra-judicial
was Gustavo's negligence in not depositing the foreclosure of the mortgaged real property. Within
check immediately that caused the check to a year from foreclosure, Lito tendered a managers
become stale. check to Ferdie to redeem the property. Ferdie
refused to accept payment on the ground that he
a. Can Gustavo now raised the issue that the wanted payment in cash. The check does not
cashier's check is not legal tender? (2%) qualify as legal tender and does not include the
interest payment. Is Ferdies refusal justified?
No, because Gustavo is guilty of estoppel by SUGGESTED ANSWER:
laches. He led Felipe to believe he could pay by Ferdies refusal is justified. A check, whether a
cashiers check, and Felipe relied that such managers check or ordinary check, is not legal
cashiers check would be encashed thys tender, and an offer of a check in payment of a
extinguishing his obligation. Because of Gustavos debt is not a valid tender of payment and may be
inaction of more than six months the check refused receipt by the oblige or creditors (Philippine
became stale and Felipe will be prejudiced if he will Airlines v. CA and Amelia Tan, G.R. No. L-49188
not be required to pay $100 at the exchange rate [1990]). Mere delivery of checks does not discharge
at the time of payment. the obligation under judgment. A check shall
produce the effect of payment only when they
ALTERNATIVE ANSWER: have been cashed or when through the fault of the
Yes. The cashiers check is not legal tender until it is creditor, they have been impaired (Art. 1249, Civil
encashed (Art. 1249, CC). The cashiers check by Code).
itself is not legal tender. [Cuaycong v. Ruiz, 86 Phil.
170 [1950]); Belisario v. Natividad, 60 Phil, 156 However, it is not necessary that the right of
[1934]). redemption be exercised by delivery of legal
tender. A check may be used for the exercise of
b. Can Felipe validly refuse to pay Gustavo again? right of redemption, the same being a right and not
(2%) an obligation. The tender of a check is sufficient to
compel redemption but is not in itself a payment
SUGGESTED ANSWER: that relieves the redemptioner from, his liability to
Yes, if the payment is valid. Since the bank pay the redemption price (Biana v. Gimenez, G.R.
considered the cashiers check as being stale for No. 132768, Septemer 9, 2005, citing Fortunado v.
not having been encashed on time, then the CA).
cashiers check may be issued again. At any rate,
non-payment of the amount to Gustavo would Redemption within the period allowed by law is not
constitute to unjust enrichment. a matter of intent but a question of payment or
valid tender of full redemption price within the said
c. Can Felipe compel Gustavo to receive US$100 period. Whether the redemption is being made
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under Act. 3135 or under the General Banking Law, EXTINGUISHMENT NOVATION (2011)
the mortgagor or his assignee is required to tender Upon the proposal of a third person, a new debtor
payment to make said redemption valid (Heirs of substituted the original debtor without the latters
Quisumbing v. PNB and SLDC, G.R. No. 178242, consent. The creditor accepted the substitution.
January 20, 2009). Later, however, the new debtor became insolvent
and defaulted in his obligation. What is the effect of
Moreover, Ferdie's refusal was justified on the the new debtors default upon the original debtor?
ground that the amount tendered does not include A. The original debtor is freed of liability since
interest. In order to effect the redemption of the novation took place and this relieved him of his
foreclosed property, the payment to the purchaser obligation.
must include the following sums: (a) the bid price; B. The original debtor shall pay or perform the
(b) the interest on the bid price, computed at one obligation with recourse to the new debtor.
per centum (1%) per month; and (c) the C. The original debtor remains liable since he gave
assessments or taxes, if any, paid by the purchaser, no consent to the substitution.
with the same rate of interest (Section 28, 1997 Rules D. The original debtor shall pay or perform 50% of
of Civil Procedure). Unless there is an express the obligation to avoid unjust enrichment on his
stipulation to that effect, the creditor cannot be part.
compelled to receive partial payment of the
prestation (Art. 1248, Civil Code). CONTRACTS


The following are the requisites of legal It is a principle which holds that parties are bound
compensation, except: not only by what has been expressly provided for in
the contract but also to the natural consequences
A. That each of the obligors is bound principally that flow out of such agreement.
and that he be the same time a principal
creditor of the other. A. Obligatory force of contracts
B. That both debts consist in a sum of money, or if B. Mutuality of contracts
the things due are consumable, they be the C. Autonomy of contracts
same kind, and also of the same quality if the D. Relativity of contracts
latter has been stated.
C. That the two (2) debts are not yet due. PRINCIPLES (2012)
D. That they be liquidated and demandable. It is a principle which holds that contracts must be
binding to both parties and its validity and
EXTINGUISHMENT SUBROGATION (2011) effectivity can never be left to the will of one of the
Asiong borrowed P1 million from a bank, secured by parties.
a mortgage on his land. Without his consent, his
friend Boyong paid the whole loan. Since Asiong A. Obligatory force of contracts
benefited from the payment, can Boyong compel B. Mutuality of contracts
the bank to subrogate him in its right as mortgagee C. Autonomy of contracts
of Asiong's land? D. Relativity of contracts

A. No, but the bank can foreclose and pay PRINCIPLES (2012)
Boyong back. It refers to the rule that a contract is binding not
B. No, since Boyong paid for Asiongs loan without only between parties but extends to the heirs,
his approval. successors in interest, and assignees of the parties,
C. Yes, since a change of creditor took place by provided that the contract involved transmissible
novation with the banks consent. rights by their nature, or by stipulation or by law.
D. Yes, since it is but right that Boyong be able to
get back his money and, if not, to foreclose the A. Obligatory force of contracts
mortgage in the manner of the bank. B. Mutuality of contracts
C. Autonomy of contracts

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D. Relativity of contracts consideration.

PRINCIPLES (2011) OFFER (2012)

Contracts take effect only between the parties or An offer becomes ineffective on any of the
their assigns and heirs, except where the rights and following grounds, except:
obligations arising from the contract are not
transmissible by their nature, by stipulation, or by A. Death, civil interdiction, insanity/insolvency of
provision of law. In the latter case, the assigns or the either party before acceptance is conveyed.
heirs are not bound by the contracts. This is known B. Acceptance of the offer by the offeree.
as the principle of C. Qualified/conditional acceptance of the offer,
A. Relativity of contracts. which becomes counter-offer.
B. Freedom to stipulate. D. Subject matter becomes illegal/impossible
C. Mutuality of contracts. before acceptance is communicated.
D. Obligatory force of contracts
OFFER (2012)
PRINCIPLES (2012) Which of the following statements is correct?
It is a rule which holds that the freedom of the
parties to contract includes the freedom to A. Offers in interrelated contracts are perfected
stipulate, provided the stipulations are not contrary upon consent.
to law, morals, good customs, public order or public B. Offers in interrelated contracts require a single
policy. acceptance.
C. Business advertisements are definite offers that
A. Obligatory force of contracts require specific acceptance.
B. Mutuality of contracts D. Advertisements for Bidders are only invitations to
C. Autonomy of contracts make proposals and the advertiser is not bound
D. Relativity of contracts. to accept the highest/lowest bidder, unless it
appears otherwise.
I. Essential Requisites

OBJECTS (2011) II. Kinds of Contracts

Can future inheritance be the subject of a contract
The following are the ways by which innominate
A. No, since it will put the predecessor at the risk of contracts are regulated, except:
harm from a tempted buyer, contrary to public
policy. A. By the stipulation of the parties.
B. Yes, since the death of the decedent is certain B. By the general principles of quasi-contracts and
to occur. delicts
C. No, since the seller owns no inheritance while his C. By the rules governing the most analogous
predecessor lives. nominate contracts.
D. Yes, but on the condition that the amount of D. By the customs of the place.
the inheritance can only be ascertained after
the obligations of the estate have been paid. CONTRACTS SOLEMN (2012)
The following are solemn contracts (Contracts
PERFECTION (2012) which must appear in writing), except:
Which of the following statements is correct?
A. Donations of real estate or of movables if the
A. All contracts are perfected by mere consent. value exceeds P5,000.00.
B. All contracts are perfected by delivery of the B. Stipulation to pay interest in loans.
object. C. Sale of land through an agent (authority must
C. All contracts are required to be in writing. be in writing).
D. All contracts are required to have a valid D. Construction contract of a building.

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A contract granting a privilege to a person, for An accepted unilateral promise to buy or to sell a
which he has paid a consideration, which gives him determinate thing for a price certain is binding
the right to buy certain merchandise or specified upon the promissor if the promise is supported by a
property, from another person, at anytime within consideration distinct from the price (Art. 1479).
the agreed period, at a fixed price. What contract Consideration in an option contract may be
is being referred to? anything of value , unlike in sale where it must be
the price certain in money or its equivalent (San
A. Option Contract Miguel Properties Inc v. Spouses Huang, G.R. No.
B. Contract to Sell 137290, July 31, 2000).
C. Contract of Sale
D. Lease Here, the case of Jack Daniels Black and the P5,000
"pulutan'' money was a consideration to "seal their
CONTRACT OPTION CONTRACT (2013) agreement", an agreement that Marcelo is given
Sergio is the registered owner of a 500-square meter until June 30, 2012 to buy the parcel of land. There is
land. His friend, Marcelo, who has long been also no showing that such consideration will be
interested in the property, succeeded in considered part of the purchase price. Thus, Sergio's
persuading Sergio to sell it to him. On June 2, 2012, unilateral withdrawal of the offer violated the
they agreed on the purchase price of P600,000 and Option Contract between him and Marcelo.
that Sergio would give Marcelo up to June 30, 2012
within which to raise the amount. Marcelo, in a light ALTERNATIVE ANSWER:
tone, usual between them, said that they should YES. Marcelo has a cause of action against Sergio.
seal their agreement through a case of Jack There is a perfected contract of sale between
Daniels Black and P5,000 pulutan" money which he Sergio and Marcelo. Sergio agreed to sell the 500
immediately handed to Sergio and which the latter sq. m. parcel of land to Marcelo for a valuable
accepted. The friends then sat down and drank the consideration of P600,000. Being a consensual
first bottle from the case of bourbon. contract, a sale is perfected by both parties giving
their consent to the thing to be sold and the price
On June 15, 2013, Sergio learned of another buyer, to be paid therefor. By giving Marcelo time to raise
Roberto, who was offering P800,000 in ready cash the money, Sergio had agreed to consummate the
for the land. When Roberto confirmed that he sale on June 30, 2012. The value of the case of Jack
could pay in cash as soon as Sergio could get the Daniel's Black and the P5,000 pulutan money, is
documentation ready, Sergio decided to withdraw considered the earnest money to seal the bargain
his offer to Marcelo, hoping to just explain matters which shall form part of the purchase price, and
to his friend. Marcelo, however, objected when the shall be deductible from the Price of P600,000.
withdrawal was communicated to him, taking the Sergio has breached the obligation arising from the
position that they have a firm and binding contract and is liable for damages under Article
agreement that Sergio cannot simply walk away 1170 [of the Civil Code of the Philippines].
from because he has an option to buy that is duly
supported by a duly accepted valuable Can Sergio claim that whatever they might have
consideration. agreed upon cannot be enforced because any
agreement relating to the sale of real property must
Does Marcelo have a cause of action against be supported by evidence in writing and they
Sergio? (5%) never reduced their agreement to writing? (3%)


YES. Marcelo has a cause of action against Sergio. NO. Sergio's claim has no legal basis. The contract
Under e 1324, When the offerer has allowed the at issue in the present case is the option contract,
offeree a certain period to accept, the offer may not the contract of sale for the real property.
be withdrawn at any time before acceptance by Therefore, Article 1403 does not apply.
communicating such withdrawal, except when the
option is founded upon a consideration, as The Statute of Frauds covers an agreement for the
something paid or promised. sale of real property or of an interest therein. Such
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agreement is unenforceable by action, unless the is not among those enumerated under Article 1403
same, or some note or memorandum, thereof, be in (2) of the Civil Code, which are covered by the
writing. (Art. 1403 (e), Civil Code) Here, Marcelo Statute of Frauds.
and Sergio merely entered into an Option Contract,
which refers to a unilateral promise to buy or sell, It is important to note that under Article 1358 of the
which need not be in writing to be enforceable Civil Code, all other contracts where the amount
(Sanchez v. Rigos, G.R. No. L-25494, June 14, 1972, involved exceeds five hundred pesos must appear
citing Atkins, Kroll and Co., Inc. v. Cua Hian Tek anti in writing, even a private one. However, the
Southwestern Sugar & Molasses Co. v. Atlantic Gulf requirement is not for the validity of the contract,
& Pacific Co.). but only for its greater efficacy.

ALTERNATIVE ANSWER: With regard the chattel mortgage, Act No. 1508,
the Chattel Mortgage Law, requires an affidavit of
NO. Sergio's claim has no legal basis. The contract good faith stating that the chattel mortgage is
of sale has already been partially executed which supposed to stand as security for the loan; thus, for
takes it outside the ambit of the Statute of Frauds. It validity of the chattel mortgage, it must be in a
is well-settled in this jurisdiction that the Statute of public document and recorded in the Chattel
Frauds is applicable only to executory contracts, Mortgage Register in the Registry of Deeds. A real
not to contracts that are totally or partially estate mortgage under the provisions of Article
performed (Carbonnel v. Poncio, G.R. No. L-11231, 2125 of the Civil Code requires that in order that a
May 12, 1958). mortgage may be validly constituted, the
document in which it appears be recorded. If the
III. Formality instrument is not recorded, the mortgage is
nevertheless valid and binding between the parties.
FORMALITIES (2013) Hence, for validity of both chattel and real estate
Lito obtained a loan of P1,000,000 from Ferdie, mortgages, they must appear in a public
payable within one year. To secure payment, Lito instrument. But for purposes of enforceability, it is
executed a chattel mortgage on a Toyota Avanza submitted that the form of the contract, whether in
and a real estate mortgage on a 200-square meter a public or private document, would be immaterial
piece of property. Would it be legally significant (Mobil Oil v. Diocaresa, 29 SCRA 656 [1969]).
from the point of view of validity and enforceability
if the loan and the mortgages' were in public or Also, under Article 1358, acts and contracts which
private instruments? have for their object the creation or transmission of
real rights over immovable property must be in a
SUGGESTED ANSWER: public document for greater efficacy and a real
From the point of view of validity and enforceability, estate mortgage is a real right over immovable
there would be legal significance if the mortgage property.
was in a public or private instrument. As for the
loan, there is no legal significance except if interest CONTRACTS (2012)
were charged on the loan, in which case the Aligada orally offered to sell his two-hectare rice
charging of interest must be in writing. land to Balane for P10Million. The offer was orally
accepted. By agreement, the land was to be
A contract of loan is a real contract and is delivered (through execution of a notarized Deed
perfected upon the delivery of the object of the of Sale) and the price was to be paid exactly one-
obligation (Art. 1934, Civil Code). Thus, a contract month from their oral agreement. Which statement
of loan is valid and enforceable even if it is neither is most accurate?
in a private nor in a public document.
A. If Aligada refuses to deliver the land on the
As a rule, contracts shall be obligatory in whatever agreed date despite payment by Balane, the
form they may have been entered into provided all latter may not successfully sue Aligada because
the essential requisites for their validity are present. the contract is oral.
With regard to its enforceability, a contract of loan B. If Aligada refused to deliver the land, Balane

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may successfully sue for fulfillment of the

obligation even if he has not tendered payment DEFECTIVE CONTRACTS (2012)
of the purchase price. Michael Fermin, without the authority of Pascual
C. The contract between the parties is rescissible. Lacas, owner of a car, sold the same car in the
D. The contract between the parties is subject to name of Mr. Lacas to Atty. Buko. The contract
ratification by the parties. between Atty. Buko and Mr. Lacas is ---

A. void because of the absence of consent from

IV. Defective Contracts
the owner, Mr. Lacas.
B. valid because all of the essential requisites of a
DEFECTIVE CONTRACTS (2012) contract are present.
If one of the parties to the contract is without C. unenforceable because Michael Fermin had no
juridical capacity, the contract is: authority but he sold the car in the name of Mr.
Lacas, the owner.
A. voidable D. rescissible because the contract caused lesion
B. rescissible to Atty. Buko.
C. void
D. unenforceable DEFECTIVE CONTRACTS (2011)
An agent, authorized by a special power of
DEFECTIVE CONTRACTS (2012) attorney to sell a land belonging to the principal
When both parties to the contract are minors, the succeeded in selling the same to a buyer
contract is: according to the instructions given the agent. The
agent executed the deed of absolute sale on
A. voidable behalf of his principal two days after the principal
B. rescissible died, an event that neither the agent nor the buyer
C. void knew at the time of the sale. What is the standing of
D. unenforceable the sale?
A. Voidable.
When the consent of one of the parties was C. Void.
vitiated, the contract is: D. Unenforceable.
A. voidable DEFECTIVE CONTRACTS (2011)
B. rescissible The presence of a vice of consent vitiates the
C. void consent of a party in a contract and this renders
D. unenforceable the contract
A. Rescissible.
DEFECTIVE CONTRACTS (2011) B. Unenforceable.
When bilateral contracts are vitiated with vices of C. Voidable.
consent, they are rendered D. Void.
A. rescissible.
C. unenforceable. The following are rescissible contracts, except:
D. voidable.
A. Entered into by guardian whenever ward suffers
DEFECTIVE CONTRACTS (2012) damage more than of value of property.
Consent was given by one in representation of B. Agreed upon in representation of absentees, if
another but without authority. The contract is: absentee suffers lesion by more than of value
of property.
A. voidable C. Contracts where fraud is committed on creditor
B. rescissible (accion pauliana.).
C. void D. Contracts entered into by minors.
D. unenforceable
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RESCISSIBLE CONTRACTS (2012) D. Sale of EGM'spiece of land by KRP, a person

The following are the requisites before a contract stranger to EGM, without EGM'sconsent or
entered into in fraud of creditors may be rescinded, authority.
V. Effect of Contracts
A. There must be credit existing prior to the
celebration of the contract. FORTUITOUS EVENT (2008)
B. There must be fraud, or at least, the intent to AB Corp. entered into a contract with XY Corp.
commit fraud to the prejudice of the creditor whereby the former agreed to construct the
seeking rescission. research and laboratory facilities of the latter.
C. The creditor cannot in any legal manner collect Under the terms of the contract, AB Corp. agreed
his credit (subsidiary character of rescission) to complete the facility in 18 months, at the total
D. The object of the contract must be legally in the contract price of P10 million. XY Corp. paid 50% of
possession of a 3rd person in good faith. the total contract price, the balance to be paid
upon completion of the work. The work stated
VOIDABLE CONTRACTS (2012) immediately, but AB Corp. later experienced work
The following are the characteristics of a voidable slippage because of labor unrest in his company.
contract, except: AB Corp.'s employees claimed that they are not
being paid on time; hence, the work slowdown. As
A. Effective until set aside. of the 17th month, work was only 45% completed.
B. May be assailed/attacked only in an action for AB Corp. asked for extension of time, claiming that
that purpose. its labor problems is a case of fortuitous event, but
C. Can be confirmed or ratified. this was denied by XY Corp. When it became
D. Can be assailed only by either party. certain that the construction could not be finished
on time, XY Corp. sent written notice cancelling the
VOID CONTRACTS (2012) contract, and requiring AB Corp. to immediately
The following are void contracts, except: vacate the premises.

A. Pactum commissorium a. Can the labor unrest be considered a fortuitous

B. Pactum de non alienando event? (1%)
C. Pactum leonina
Labor unrest is not a fortuitous event that will excuse
VOID CONTRACTS (2012) AB Corp. from complying with its obligation of
Which of the following contracts is void? constructing the research and laboratory facilities
of XY Corporation. The labor unrest, which may
A. An oral sale of a parcel of land. even be attributed in large part to AB Corp. itself is
B. A sale of land by an agent in a public not the direct cause of non-compliance by AB
instrument where his authority from the principal Corp. It is independent of its obligation. It is similar to
is oral. the failure of a DBP borrower to pay her loan just
C. A donation of a wrist watch worth P4,500.00. because her plantation suffered losses due to the
D. A relatively simulated contract. cadang-cadang disease. It does not excuse
compliance with the obligation (DBP v. Vda. De
VOID CONTRACTS (2012) Moll, 43 SCRA 82 [1972])
Which of the following contracts of sale is void?
A. Sale of EGM'scar by KRP, EGM'sagent, whose The labor unrest in this case is not a fortuitous event.
authority is not reduced into writing. The requisites of fortuitous event are: (1) the event
B. Sale of EGM's piece of land by KRP, EGM's must be independent of human will or at least of
agent, whose authority is not reduced into the debtors will; (2) the event could not be
writing. foreseen or if foreseen, is inevitable; (3) the event
C. Sale of EGM'scar by KRP, a person stranger to must have rendered impossible debtors
EGM, without EGM'sconsent or authority. compliance of the obligation in a proper manner
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and (4) the debtor must not be guilty of concurrent

negligence (Lasan v. Smith, 43 Phils. 557 [1924]). All SALES
the requisites are absent in this case. AB Corp.,
could have anticipated the labor unrest which was
caused by delays in paying the laborers wages.
I. Definition and Essential Requisites of a
The company could have hired additional laborers Contract of Sale
to make up for the work slowdown.
Lino entered into a contract to sell with Ramon,
b. Can XY Corp. unilaterally and immediately undertaking to convey to the latter one of the five
cancel the contract? (2%) lots he owns, without specifying which lot it was, for
the price of P1 million. Later, the parties could not
MAIN SUGGESTED ANSWER: agree which of five lots he owned Lino undertook
No. XY Corp cannot unilaterally and immediately to sell to Ramon. What is the standing of the
cancel the contract because there is need for a contract?
judicial action of rescission. The provisions of 1191 of
the Civil Code providing for rescission in reciprocal A. Unenforceable.
obligations can only be invoked judicially. (Escueta B. Voidable.
v. Pando, 76 Phil. 256 [1946]; Republic v. Hospital C. Rescissible.
de San Juan de Dios, 84 Phil. 820 [1941]) D. Void.


Yes. XY Corp. May unilaterally cancel the obligation Arlene owns a row of apartment houses in
but this is subject to the risk that the cancellation of Kamuning, Quezon City. She agreed to lease
the reciprocal obligation being challenged in court Apartment No. 1 to Janet for a period of 18 months
and if AB Corp. succeeds, then XY Corp. will be at the rate of P10,000 per month. The lease was not
declared in default and be liable for damages (UP covered by any contract. Janet promptly gave
v. de los Angeles, 35 SCRA 102 [1970]). Arlene two (2) months deposit and 18 checks
covering the rental payment for 18 months. This
c. Must AB Corp. return the 50% down payment? show of good faith prompted Arlene to promise
(2%) Janet that should Arlene decide to sell the
property, she would give Janet the right of first
No. Under the principle of quantum meruit, AC
Corp., has the right to retain payment Not long after Janet moved in, she received news
corresponding to his percentage of that her application for a Master of laws scholarship
accomplishment less the amount of damages at Kings College in London had been approved.
suffered by XY Corp. because of the delay or Since her acceptance of the scholarship entailed a
default. transfer of residence, Janet asked Arlene to return
the advance rental payments she made. Arlene
CONTRACT LIABILITY (2012) refused, prompting Janet to file an action to
Which phrase most accurately completes the recover the payments. Arlene filed a motion to
statement -Any third person who induces another dismiss, claiming that the lease, on which the action
to violate his contract: is based, is unenforceable.

A. shall be liable for damages only if he is a party Assume that Janet decided not to accept the
to the same contract. scholarship and continued leasing Apartment No. 1.
B. shall be liable for damages to the other Midway through the lease period, Arlene decided
contracting party. to sell Apartment No. 1 to Jun in breach of her
C. shall not be liable for damages to the other promise to Janet to grant her the right of first refusal.
contracting party. Thus, Janet filed an action seeking the recognition
D. shall not be liable for damages if the parties are of her right of first refusal, the payment of damages
in pari delicto. for the violation of this right, and the rescission of
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the sale between Arlene and Jun.

b. Will the alternative prayer for extension of the
Is Janets action meritorious? lease prosper? (2%)

A. Yes, under the Civil Code, a promise to buy and SUGGESTED ANSWER:
sell a determinate thing is reciprocally No, the extension of the lease should be upon
demandable. mutual agreement of the parties.
B. No, the promise to buy and sell a determinate
thing was not supported by a consideration. SALE OF UNREGISTERED LAND (2008)
C. Yes, Janets right of first refusal was clearly Juliet offered to sell her house and lot, together with
violated when the property was not offered for all the furniture and appliances therein to Dehlma.
sale to her before it was sold to Jun. Before agreeing to purchase the property, Dehlma
D. No, a right of first refusal involves an interest over went to the Register of Deeds to verify Juliet's title.
real property that must be embodied in a She discovered that while the property was
written contract to be enforceable. registered in Juliet's name under the Land
Registration Act, as amended by the Property
The right of first refusal involves a transfer of interest Registration Decree, it property, Dehlma told Juliet
in real property. As such, it is covered by the Statute to redeem the property from Elaine, and gave her
of Frauds under Article 1403 (2) of the Civil Code. It an advance payment to be used for purposes of
must be in writing in order to be enforceable. releasing the mortgage on the property. When the
mortgage was released, Juliet executed a Deed of
RIGHT OF FIRST REFUSAL (2013) Absolute Sale over the property which was duly
Dux leased his house to Iris for a period of 2 years, at registered with the Registry of Deeds, and a new
the rate of P25,000.00 monthly, payable annually in TCT was issued in Dehlma's name. Dehlma
advance. The contract stipulated that it may be immediately took possession over the house and lot
renewed for another 2-year period upon mutual and the movables therein. Thereafter, Dehlma went
agreement of the parties. The contract also to the Assessor's Office to get a new tax declaration
granted Iris the right of first refusal to purchase the under her name. She was surprised to find out that
property at any time during the lease, if Dux the property was already declared for tax purposes
decides to sell the property at the same price that in the name of XYZ Bank which had foreclosed the
the property is offered for sale to a third party. mortgage on the property before it was sold to her.
Twenty-three months after execution of the lease XYZ Bank was also the purchaser in the foreclosure
contract, Dux sold the house to his mother for P2 sale of the property. At that time, the property was
million. Iris claimed that the sale was a breach of still unregistered but XYZ Bank registered the Sheriff's
her right of first refusal. Dux said there was no Deed of Conveyance in the day book of the
breach because the property was sold to his Register of Deeds under Act. 3344 and obtained a
mother who is not a third party. Iris filed an action to tax declaration in its name.
rescind the sale and to compel Dux to sell the
property to her at the same price. Alternatively, she a. Was Dehlma a purchaser in good faith? (2%)
asked the court to extend the lease for another 2
years on the same terms. SUGGESTED ANSWER:
Yes, Dehlma is a purchaser in good faith. She
a. Can Iris seek rescission of the sale of the property learned about the XYZ tax declaration and
to Dux's mother? (3%) foreclosure sale only after the sale to her was
registered. She relied on the certificate of title of her
SUGGESTED ANSWER: predecessor-in-interest. Under the Torrens system, a
Iris can seek rescission because pursuant to buyer of registered lands is not required by law to
Equatorial Realty Co. v. Mayfair Theater (264 SCRA inquire further than what the Torrens certificate
483 [1996]) rescission is a relief allowed for the indicates on its face. If a person proceeds to buy it
protection of one of the contracting parties and relying on the title that person is considered a buyer
even third persons from all injury and damage the in good faith.
contract of sale may cause or the protection of
some incompatible and preferred right. The priority in time rule could not be invoked by
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XYZ Bank because the foreclosure sale of the land retro within the stipulated period. This is known as
in favour of the bank was recorded under Act 3344,
the law governing transactions affecting A. equitable mortgage.
unregistered land and thus, does not bind the land. B. conventional redemption.
C. legal redemption.
b. Who as between Dehlma and XYZ Bank has a D. equity of redemption.
better right to the house and lot? (2%)

SUGGESTED ANSWER: II. Parties to a Contract of Sale

Between Dehlma and the bank, the former has a
better right to the house and lot. RIGHTS AND OBLIGATIONS OF BUYER (2011)
A buyer ordered 5,000 apples from the seller at P20
c. Who owns the movables inside the house? (2%) per apple. The seller delivered 6,000 apples. What
are the rights and obligations of the buyer?
Unless there is a contrary stipulation in the absolute A. He can accept all 6,000 apples and pay the
deed of sale, Dehlma owns the movables covered seller at P20 per apple.
by the Deed of Sale and her ownership is perfected B. He can accept all 6,000 apples and pay a
by the execution and delivery of public document lesser price for the 1,000 excess apples.
of sale. The delivery of the absolute deed of sale is C. He can keep the 6,000 apples without paying
a symbolical delivery of the house and lot, including for the 1,000 excess since the seller delivered
the contents of the house. This is an obligation to them anyway.
deliver a specific thing, which includes the delivery D. He can cancel the whole transaction since the
of the specific thin itself and all of its accessions and seller violated the terms of their agreement.
accessories even though they may not have been
mentioned (Art. 1166, CC).
III. Subject Matter
A contract to sell is the same as a conditional IV. Obligations of the Seller to Transfer
contract of sale. Do you agree? Explain your Ownership
answer. (5%)
V. Price
NO, a contract to sell is a species of conditional VI. Formation of Contract of Sale
sale. The contract to sell does not sell a thing or
property; it sells the right to buy property. A
conditional sale is a sale subject to the happening
VII. Transfer of Ownership
or performance of a condition, such as payment of
the full purchase price, or the performance of any VIII. Risk of Loss
other prestation to give, to do or not to do.
Compliance with the condition automatically gives IX. Documents of Title
the right to the vendee to demand the delivery of
the object of the sale. In a contract to sell, X. Remedies of an Unpaid Seller
however, the compliance with the condition does
not automatically sell the property to the vendee. It RESCISSION (2011)
merely gives the vendee the right to compel the X sold Y 100 sacks of rice that Y was to pick up from
vendor to execute the deed of absolute sale. Xs rice mill on a particular date. Y did not,
however, appear on the agreed date to take
PACTO DE RETRO SALE (2011) delivery of the rice. After one week, X automatically
In a true pacto de retro sale, the title and rescinded the sale without notarial notice to Y. Is
ownership of the property sold are immediately the rescission valid?
vested in the vendee a retro subject only to the
resolutory condition of repurchase by the vendor a
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A. Yes, automatic rescission is allowed since,

having the character of movables and Exclude: Electronic Commerce Act of 2000 (R.A.
consumables, rice can easily deteriorate. No. 8792); Public Land Law, Retail Trade and
B. No, the buyer is entitled to a customary 30-day Liberalization Act, Bulk Sales Law (Act No. 3952)
extension of his obligation to take delivery of the
goods. CONDOMINIUM ACT (2009)
C. No, since there was no express agreement The Ifugao Arms is a condominium project in Baguio
regarding automatic rescission. City. A strong earthquake occurred which left huge
D. No, the seller should first determine that Y was cracks in the outer walls of the building. As a result,
not justified in failing to appear. a number of condominium units were rendered
unfit for use. May Edwin, owner of one of the
XI. Performance of Contract condominium units affected, legally sue for partition
by sale of the whole project? Explain. (4%)
XII. Warranties
WARRANTY (2011) Yes, Edwin may legally sue for partition by sale of
A warranty inherent in a contract of sale, whether the whole condominium project under the
or not mentioned in it, is known as the following conditions: (a) the damage or destruction
caused by the earthquake has rendered one-half
A. warranty on quality. (1/2) or more of the units therein untenantable, and
B. warranty against hidden defects. (b) that the condominium owners holding an
C. warranty against eviction. aggregate of more than thirty (30%) percent
D. warranty in merchantability. interest of the common areas are opposed to the
restoration of the condominium project (Section
WARRANTY AGAINST HIDDEN DEFECTS (2011) 8[b], Republic Act No. 472 'Condominium Act").
Knowing that the car had a hidden crack in the
engine, X sold it to Y without informing the latter SUCCESSION
about it. In any event, the deed of sale expressly
stipulated that X was not liable for hidden defects. I. General Provisions
Does Y have the right to demand from X a
reimbursement of what he spent to repair the REQUISITES (2012)
engine plus damages? The requisites of succession are as follows, except:

A. Yes. X is liable whether or not he was aware of A. Death of decedent

the hidden defect. B. Transmissible estate
B. Yes, since the defect was not hidden; X knew C. Existence and capacity of successor,
of it but he acted in bad faith in not disclosing designated by decedent or law
the fact to Y. D. Payment of Taxes
C. No, because Y is in estoppel, having changed
engine without prior demand. SUCCESION CHARACTERISTICS (2012)
D. No, because Y waived the warranty against The characteristics of succession are as follows,
hidden defects. except:

XIII. Breach of Contract A. It is a legal contract.

B. Only property, rights and obligations to the
extent of the value of the inheritance are
XIV. Extinguishment of the Sale
C. The transmission takes place only at the time of
XV. The Subdivision and Condominium death.
Buyers' Protective Decree (P.D. 957) D. The transmission takes place either by will or by
operation of law.
XVI. The Condominium Act (R.A. No. 4726)
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II. Testamentary Succession handwriting.

WILLS PRINCIPLES (2012) b. Act as a witness to a will? (1%)

It is the omission in the testator's will of one; some or
all of the compulsory heirs in direct line, whether SUGGESTED ANSWER:
living at the time of execution of the will or born A blind man is disqualified by law to be a witness to
after the death of the testator. What principle is a notarial will.
being referred to?
c. In either of the above instances, must the will be
A. reserva troncal read to him? (1%)
B. preterition
C. fideicommissary SUGGESTED ANSWER:
D. disposicion captatoria In case Stevie executes a notarial will, it has to be
read to him twice. First by one of the instrumental
WILLS PRINCIPLES (2012) witnesses and second by the notary public before
Any disposition made upon the condition that the whom the will was acknowledged.
heir shall make some provision in his will in favor of
the testator or of any other person shall be void. FORMALITIES (2010)
Here, both the condition and the disposition are A executed a 5-page notarial will before a notary
void. What principle is being referred to? public and three witnesses. All of them signed each
and every page of the will.
A. reserva troncal
B. preterition One of the witnesses was B, the father of one of the
C. fideicommissary legatees to the will. What is the effect of B being a
D. disposicion captatoria witness to the will? (1%)

WILLS PRINCIPLES (2012) A. The will is invalidated

Which phrase most accurately completes the B. The will is valid and effective
statement - If at the time the contract of sale is C. The legacy given to Bs child is not valid
perfected, the thing which is the object of the
contract has been entirely lost: The validity of the will is not affected by the legacy
in favor of the son of an attesting witness to the will.
A. the buyer bears the risk of loss. However, the said legacy is void under Article 823
B. the contract shall be without any effect. NCC.
C. the seller bears the risk of loss.
D. the buyer may withdraw from the contract. ALTERNATIVE ANSWER:
B. The will is valid and effective. Under Article 823
FORMALITIES (2008) (NCC), the legacy given in favor of the son of an
Stevie was born blind. He went to school for the instrumental witness to a will has no effect on the
blind, and learned to read in Baille Language. He validity of the will. Hence, the will is valid and
Speaks English fluently. Can he: effective.

a. Make a will? (1%) FORMALITIES (2011)

Pepito executed a will that he and 3 attesting
SUGGESTED ANSWER: witnesses signed following the formalities of law,
Stevie may make a notarial will. A blind man is not except that the Notary Public failed to come. Two
expressly prohibited from executing a will. In fact, days later, the Notary Public notarized the will in his
Article 808 of the NCC provides for additional law office where all signatories to the will
formality when the testator is blind. Stevie, however, acknowledged that the testator signed the will in
may not make a holographic will in Braille because the presence of the witnesses and that the latter
the writing in Braille is not handwriting. A themselves signed the will in the presence of the
holographic will to be valid must be written entirely, testator and of one another. Was the will validly
signed and dated by the testator in his own
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notarized? free woman.

C. No, because the nullity of the prohibition also
A. No, since it was not notarized on the occasion nullifies the legacy.
when the signatories affixed their signatures on D. No, since such prohibition is authorized by law
the will. and is not repressive; she could remarry but
B. Yes, since the Notary Public has to be present must give up the money.
only when the signatories acknowledged the
acts required of them in relation to the will.
C. Yes, but the defect in the mere notarization of
The testator executed a will following the formalities
the will is not fatal to its execution.
required by the law on succession without
D. No, since the notary public did not require the
designating any heir. The only testamentary
signatories to sign their respective attestations
disposition in the will is the recognition of the
testator's illegitimate child with a popular actress. Is
the will valid?
The attestation clause contains the following,
A. Yes, since in recognizing his illegitimate child,
the testator has made him his heir.
B. No, because the non-designation of heirs
A. the number of pages used;
defeats the purpose of a will.
B. that the testator signed or caused another to
C. No, the will comes to life only when the proper
sign the will and every page thereof in the
heirs are instituted.
presence of the instrumental witnesses;
D. Yes, the recognition of an illegitimate heir is an
C. notary public;
ample reason for a will.
D. the instumental witnesses witnessed and signed
the will and all the pages thereof in the
presence of the testator and one another.
How can RJP distribute his estate by will, if his heirs
are JCP, his wife; HBR and .RVC, his parents; and an
illegitimate child, SGO? (5%)
In his will, the testator designated X as a legatee to
receive P2 million for the purpose of buying an
ambulance that the residents of his Barangay can
A testator may dispose of by will the free portion of
his estate. Since the legitime of JCP is 1/8 of the
What kind of institution is this?
estate, that of SGO is of the estate, and that of
A. a fideicomissary institution.
HBR and RVC is of the hereditary estate under
B. a modal institution.
Article 889 of the NCC, the remaining 1/8 of the
C. a conditional institution.
estate if the free portion which the testator may
D. a collective institution.
dispose of by will.
Fernando executed a will, prohibiting his wife
Joanne married James, a person with no known
Marina from remarrying after his death, at the pain
relatives. Through James' hard work, he and his wife
of the legacy of P100 Million in her favor becoming Joane prospered. When James died, his estate
a nullity. But a year after Fernandos death, Marina alone amounted to P100 million. If, in his will, James
was so overwhelmed with love that she married designates Joanne as his only heir, what will be the
another man. Is she entitled to the legacy, the free portion of his estate.
amount of which is well within the capacity of the
disposable free portion of Fernandos estate? A. Joanne gets all; estate has no free portion left.
B. Joanne gets 1/2; the other half is free portion.
A. Yes, since the prohibition against remarrying is C. Joanne gets 1/3; the remaining 2/3 is free
absolute, it is deemed not written. portion.
B. Yes, because the prohibition is inhuman and D. Joanne gets 1/4; the remaining 3/4 is free
oppressive and violates Marinas rights as a portion.

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a. Was Erica preterited? (1%)

ML inherited from his father P5 million in legitime but SUGGESTED ANSWER:
he waived it in a public instrument in favor of his No, Erica was not preterited under Art. 854 of the
sister QY who accepted the waiver in writing. But as New Civil Code because she was not related line.
it happened, ML borrowed P6 million from PF before Moreover, since there is an intestate portion in
the waiver. PF objected to the waiver and filed an Arthurs estate from which Erica will inherit as an
action for its rescission on the ground that he had intestate heir, she was not totally excluded or
the right to MLs P5 million legitime as partial omitted from the inheritance of Arthur. To be
settlement of what ML owed him since ML has preterited, the heir who must be a compulsory heir
proved to be insolvent. Does PF, as creditor, have in the direct line should be totally excluded from
the right to rescind the waiver? the inheritance, i.e. the heir will not receive
anything by will or by intestacy, and has not
A. No, because the waiver in favor of his sister QY received any advance by way of donation inter
amounts to a donation and she already vivos.
accepted it.
B. Yes, because the waiver is prejudicial to the Even assuming that Erica was preterited, her
interest of a third person whose interest is preterition will not have any effect on the provisions
recognized by law. of the will. The effect of preterition is simply to annul
C. No, PF must wait for ML to become solvent and, the institution of an heir made in the will. Legacies
thereafter, sue him for the unpaid loan. and devises are respected unless they are
D. Yes, because a legitime cannot be waived in inofficious. In the problem, since the will contains
favor of a specific heir; it must be divided nothing but a devise, there is no institution, that will
among all the other heirs. be annulled even on the assumption that ther was
PROBATE (2008)
Arthur executed a will which contained only: (i) a b. What other defects of the will, if any, can cause
provision disinheriting his daughter Bernica for denial of probate? (2%)
running off with a married man, and (ii) a provision
disposing of his share in the family house and lot in SUGGESTED ANSWER:
favor of his other children Connie and Dora. He did There are no other defects of the will that can
not make any provisions in favor of his wife Erica, cause denial of probate. Art. 805 of the Civil Code
because as the will stated, she would anyway get provides that the will must be subscribed at the end
of the house and lot as her conjugal share. The thereof by the testator, and subscribed by three or
will was very brief and straightforward and both the more credible witnesses in the presence of the
above provisions were contained in page 1, which testator and of one another. The driver, the cook
Arthur and his instrumental witness, signed at the and the lawyer who prepared the will are credible
bottom. Page 2 contained the attestation clause witnesses. The testator and the instrumental
and the signatures, at the bottom thereof, of the 3 witnesses of the will, shall also sign, and every page
instrumental witnesses which included Lambert, the of the will proper, except the last, on the left
driver of Arthur; Yoly, the family cook, and Attorney margin, and all the pages shall be numbered
Zorba, the lawyer who prepared the will. There was correlatively in letters placed on the upper part of
a 3rd page, but this only contained the notarial each page.
acknowledgement. The attestation clause stated
the will was signed on the same occasion by Arthur It has been held, however, that the testators
and his instrumental witnesses who all signed in the signature is not necessary in the attestation clause
presence of each other, and the notary public who and that if a will consists of two sheets, the first of
notarized the will. There are no marginal signatures which contains the testamentary dispositions, and is
or pagination appearing on any of the 3 pages. signed at the bottom by the testator and the three
Upon his death, it was discovered that apart from witnesses, and the second sheet contains the
the house and lot, he had a P 1 million account attestation clause, as in this case, signed by 3
deposited with ABC bank. witnesses, marginal signatures and paging are not
necessary. After all, the object of the law is to avoid
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substitution of any of the sheets of the will. and Mary. In one of their trips to London, the couple
(Abangan v. Abangan, 40 Phil. 476 [1919]; In Re: Will executed a joint will appointing each other as their
of Tan Diuco, 45 Phil 807 [1924]). heirs and providing that upon the death of the
survivor between them the entire estate would go
c. Was the disinheritance valid? (1%) to Peter and Paul only but the two could not
dispose of nor divide the London estate as long as
SUGGESTED ANSWER: they live. John and Paul died tragically in the
The fact that the daughters disinherited ran off with London Subway terrorist attack in 2005. Peter and
a married man is a valid ground for disinheritance Paul filed a petition for probate of their parent's will
under the Civil Code. One ground for disinheritance before a Makati Regional Trial Court.
of a descendant is when the descendant leads in
dishonourable or disgraceful life (Art. 919 [7], CC). a. Should the will be admitted to probate? (2%)
Running away with a married man leads to a
dishonourable or disgraceful life. SUGGESTED ANSWER:
No, the will cannot be admitted to probate. Joint
d. How should the house and lot, and the cash be wills are void under the New Civil Code. And even if
distributed? (1%) the joint will executed by Filipinos abroad were
valid where it as executed, the joint will is still not
SUGGESTED ANSWER: valid in the Philippines.
On the assumption that the House and Lot and
Cash were all conjugal property, the distribution will b. Are the testamentary dispositions valid? (2%)
be as follows:
House and Lot If a will is void, all testamentary dispositions
One half of the house shall be the conjugal share of contained in that will are also void. Hence, all
Erica. The other half is the conjugal share of Arthur testamentary provisions contained in the void joint
which was inherited by Erica, Connie and Dora in will are also void.
equal shares. Hence, Erica, Connie and Dora will be
undivided co-owners of the house and lot with c. Is the testamentary prohibition against the
Rtica getting 2/3 share thereof and Connie and division of the London estate valid? (2%)
Dora with 1/6 share each.
Cash The testamentary prohibition against the division by
The one million cash shall be divided in the same Peter and Paul of the London estate for as long as
manner. thereof or 500,000 shall be the conjugal they live, is not valid. Article 494 of the New Civil
share of Erica while 500,000 shall be the conjugal Code provides that a donor or testator may prohibit
share of Erica while 500,000 shall be the share of partition for a period which may not exceed twenty
Arthur. This amount shall be divided in 3 equal years.
shares, or 166,666.66 per share. Erica will get
166,666.66 as her share, while Dora and Connie will PROBATE (2012)
get 166,666.66 each as their inheritance. The one The will of a Filipino executed in a foreign country---
million cash will be distributed as follows:
A. cannot be probated in the Philippines;
Erica --------- 666,666.66 B. may be probated in the Philippines provided
Dora --------- 166,666.66 that properties in the estate are located in the
Connie ------- 166,666.66 Philippines;
C. cannot be probated before the death of the
PROBATE (2008) testator;
John and Paula, British citizens at birth, acquired D. may be probated in the Philippines provided it
Philippine citizenship by naturalization after their was executed in accordance with the laws of
marriage. During their marriage the couple the place where the will was executed.
acquired substanial landholdings in London and in
Makati. Paula bore John three children, Peter, Paul PROBATE (2012)
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John Sagun and Maria Carla Camua, British citizens period longer than twenty (20) years.
at birth, acquired Philippine citizenship by
naturalization after their marriage. During their FIDEICOMISSARY SUBSTITUTION (2008)
marriage, the couple acquired substantial Raymond, single, named his sister Ruffa in his will as
landholdings in London and in Makati. Maria begot a devisee of a parcel of land which he owned. The
three (3) children, Jorge, Luisito, and Joshur. In one will imposed upon Ruffa the obligation of preseving
of their trips to London, the couple executed a joint the land and transferring it, upon her death, to her
will appointing each other as their heirs and illegitimate daughter Scarlet who was then only one
providing that upon the death of the survivor year old. Raymond later died, leaving behind his
between them, the entire estate would go to Jorge widowed mother, Ruffa and Scarlet.
and Luisito only but the two (2) could not dispose of
nor divide the London estate as long as they live. a. Is the condition imposed upon Ruffa, to preserve
John and Maria died tragically in the London the property and to transmit it upon her death to
subway terrorist attack in 2005. Jorge and Luisito Scarlet, valid? (1%)
filed a petition for probate of their parents' will
before a Makati Regional Trial Court. Joshur SUGGESTED ANSWER:
vehemently objected because he was preterited. When an obligation to preserve and transmit the
property to Scarlet was imposed on Ruffa, the
a. Should the will be admitted to probate? Explain. testator Raymond intended to create a
(2%) fideicommissary substitution where Ruffa is the
fiduciary and Scarlet is the fideicommissary. Having
SUGGESTED ANSWER: complied with the requirements of Articles 63 and
NO, the will should not be admitted to probate. 869 (NCC) the fideicommissary substitution is valid.
Since the couple are both Filipino citizens, Articles
818 and 819 of the NCC shall apply. Said Articles b. If Scarlet predeceases Ruffa, who inherits the
prohibit the execution of joint wills and make them property? (2%)
void, even though authorized by the laws of the
country where they were executed. SUGGESTED ANSWER:
In Scarlet preceases Ruffa, the fideicommissary
b. Are the testamentary dispositions valid? Explain. substitution is rendered null or ineffective under
(2%) Article 863 (NCC) And applying Article 868 (NCC),
the fideicommisssary clause is disregarded without
SUGGESTED ANSWER: prejudice to the validity of the institution of the
Since the joint will is void, all the testamentary fiduciary. In such case Ruffa shall inherit the devise
dispositions written therein are also void. However, if free from the condition.
the will is valid, the institutions of heirs shall be
annulled because Joshur was preterited. He was c. If Ruffa predeceases Raymond, can Scarlet
preterited because he will receive nothing from the inherit the property directly from Raymond? (2%)
will, will receive nothing by intestacy, and the facts
do not show that he received anything as an SUGGESTED ANSWER:
advance on his inheritance. He was totally In a fideicommissary substitution, the intention of the
excluded from the inheritance of his parents. testator is to make the second heir his ultimate heir.
The right of the second heir is simply postponed by
c. Is the testamentary prohibition against the the delivery of the inheritance on the to the first heir
division of the London estate valid? Explain. (1%) for him to enjoy the usufruct over the inheritance.
Hence, when the first heir predeceased the
SUGGESTED ANSWER: testator, the first heir did not qualify to inherit and
Assuming the will of John and Maria is valid, the the right of the second heir to receive the
testamentary prohibition on the division of the inheritance will no longer be delayed provided the
London estate shall be valid but only for 20 years. second heir is qualified to inherit at the time of the
Under Articles 1083 and 494 of the NCC, a testators death. In fideicommissary substitution, the
testamentary disposition of the testator cannot first and the second heirs inherit from the testator,
forbid the partition of all or part of his estate for a hence, both should be qualified to inherit from the
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testator at the time of his death. Josie even abroad.

C. Yes, since they executed their joint will out of
In the problem, when Ruffa predeceased mutual love and care, values that the generally
Raymond, she did not qualify to receive the accepted principles of international law
inheritance t o enjoy its usufruct, hence, the right of accepts.
Scarlet to receive the inheritance upon the death D. Yes, since it is valid in the country where it was
of the testator will no longer be delayed. However, executed, applying the principle of lex loci
Scarlet is not qualified to inherit from Raymond celebrationis.
because she is barred by Art. 992 of the NCC being
an illegitimate child of Raymonds legitimate father. DESIGNATION OF LEGATEE (2011)
The devise will therefore be ineffective and the X owed Y P1.5 million. In his will, X gave Y legacy of
property will be disposed of by intestacy. P1 million but the will provided that this legacy is to
be set off against the P1.5 million X owed Y. After
SUBSTITUTION OF HEIRS (2011) the set off, X still owed Y P500,000. Can Y still collect
Ricky and Arlene are married. They begot Franco this amount?
during their marriage. Franco had an illicit
relationship with Audrey and out of which, they A. Yes, because the designation of Y as legatee
begot Arnel. Franco predeceased Ricky, Arlene created a new and separate juridical
and Arnel. Before Ricky died, he executed a will relationship between them, that of testator-
which when submitted to probate was opposed by legatee.
Arnel on the ground that he should be given the B. It depends upon the discretion of the probate
share of his father, Franco. Is the opposition of Arnel court if a claim is filed in the testate
correct? Why? (5%) proceedings.
C. No, because the intention of the testator in
SUGGESTED ANSWER: giving the legacy is to abrogate his entire
NO, his opposition is not correct. Arnel cannot obligation to Y.
inherit from Ricky in representation of his father D. No, because X had no instruction in his will to
Franco. In representation, the representative must deliver more than the legacy of P1 million to Y.
not only be a legal heir of the person he is
representing, he must also be a legal heir of the RESERVA TRONCAL (2009)
decedent he seeks to inherit from. In reserva troncal, all reservatarios (reservees) inherit
as a class and in equal shares regardless of their
While Arnel is a legal heir of Franco, he is not a legal proximity in degree to the prepositus. True or Fals?
heir of Ricky because under Article 992 of the NCC,
an illegitimate child has no right to inherit ab SUGGESTED ANSWER:
intestate from the legitimate children and relatives FALSE. Not all of the relatives within the third degree
of his father or mother. Arnel is disqualified to inherit will inherit as reservatario, and not all of those who
from Ricky because Arnel is an illegitimate child of are entitled to inherit will inherit in equal shares. The
Franco and Ricky is a legitimate relative of Franco. applicable laws of intestate succession will
determine who among the relatives will inherit as
JOINT WILL (2011) reservatarios and what shares they will take, i.e., the
Ric and Josie, Filipinos, have been sweethearts for 5 direct line excludes the collateral, the descending
years. While working in a European country where direct line excludes the ascending, the nearer
the execution of joint wills are allowed, the two of excludes the more remote, the nephews and
them executed a joint holographic will where they nieces exclude the uncles and aunts, and half
named each other as sole heir of the other in case blood relatives inherit half the share of full-blood
either of them dies. Unfortunately, Ric died a year relatives.
later. Can Josie have the joint will successfully
probated in the Philippines? PARTITION (2010)
A. Yes, in the highest interest of comity of nations True or False: X, a widower, died leaving a will
and to honor the wishes of the deceased. stating that the house and lot where he lived
B. No, since Philippine law prohibits the execution cannot be partitioned for as long as the youngest
of joint wills and such law is binding on Ric and of his four children desires to stay there. As coheirs
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and co-owners, the other three may demand

partition anytime. (1%) However, if the cancellation of Rosas name was
not done by the testator himself, such cancellation
SUGGESTED ANSWER: shall not be effective and the will in its original tenor
shall remain valid. The efficacy of a holographic will
FALSE. The other three co-heirs may not at any time cannot be left to the mercy of unscrupulous third
demand the partition of the house and lot since it parties.
was expressly provided by the decedent in his will
that the same cannot be partitioned while his The writing of Gregorios name as sole heir was
youngest child desires to stay there. Article 1803 of ineffective, even though written by the testator
the New Civil Code allows a decedent to prohibit, himself, because such is an alteration that requires
by will, the partition of a property in his estate for a the authentication by the full signature of the
period not longer than 20 years no matter what his testator to be valid and effective. Not having been
reason may be. Hence, the three co-heirs cannot authenticated, the designation of Gregorio as an
demand its partition at any time but only after 20 heir was ineffective. (Kalaw v. Relova, G.R. No. L-
years from the death of their father. Even if the 40207, September 28, 1984).
deceased parent did not leave a will, if the house
and lot constituted their family home, Article 159 of HOLOGRAPHIC WILL PROBATE (2009)
the Family Code prohibits of its partition for a period On December 1, 2000, Dr. Juanito Fuentes
of ten (10) years, or for as long as there is a minor executed a holographic will, wherein he gave
beneficiary living in the family home. nothing to his recognized illegitimate son, Jay. Dr.
Fuentes left for the United States, passed the New
HOLOGRAPHIC WILL REQUISITES (2012) York medical licensure examinations, resided
The following are the formalities required in the therein, and became a naturalized American
execution of holographic will, except: citizen. He died in New York in 2007. The laws of
New York do not recognize holographic wills or
A. Entirely written; compulsory heirs.
B. Dated;
C. Signed by testator himself a. Can the holographic will of Dr. Fuentes be
D. Notarized by a notary public. admitted to probate in the Philippines? Why or why
not? (3%)
Natividad's holographic will, which had only one (1) SUGGESTED ANSWER:
substantial provision, as first written, named Rosa as Yes, the holographic will of Dr. Fuentes may be
her sole heir. However, when Gregorio presented it admitted to probate in the Philippines because
for probate, it already contained an alteration, there is no public policy violated by such probate.
naming Gregorio, instead of Rosa, as sole heir, but The only issue at probate is the due execution of
without authentication by Natividad's signature. the will which includes the formal validity of the will.
Rosa opposes the probate alleging such lack of As regards formal validity, the only issue the court
proper authentication. She claims that the will resolve at probate is whether or not the will was
unaltered form of the will should be given effect. executed in accordance with the form prescribed
Whose claim should be granted? Explain. (5%) by the law observed by the testator in the
Philippines, an alien testator may observe the law of
SUGGESTED ANSWER: the place where the will was executed (Article 17,
It depends. If the cancellation of Rosas name in NCC), or the formalities of the law of the place
the will was done by the testator himself, Rosas where he resides, or according to the formalities of
claim that the holographic will in its original tenor the law of his own country, or in accordance with
should be given effect must be denied. The said the Philippine Civil Code (Art. 816, NCC). Since Dr.
cancellation has revoked the entire will as nothing Fuentes executed his will in accordance with the
remains of the will after the name of Rosa was Philippine law, the Philippine court shall apply the
cancelled. Such cancellation is valid revocation of New Civil Code in determining the formal validity of
the will and does not require authentication by the the holographic will. Under the New Civil Code,
full signature of the testator to be effective. which was the law used by Dr. Fuentes, the law in
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force at the time of execution of the will shall DISINHERITANCE (2011)

govern the formal validity of the will (Article 795, Which of the following is NOT a basis for rendering a
NCC). disinheritance defective or imperfect?

b. Assuming that the will is probated in the A. Its cause comes from the guilt of a spouse in a
Philippines, can Jay validly insist that he be given his legal separation case, the innocent-spouse
legitime? Why or why not? (3%) having died.
B. The truth of its cause is denied and not
SUGGESTED ANSWER: sufficiently proved by evidence.
No, Jay cannot insist because under New York law C. Its cause is not authorized by the law.
he is not a compulsory heir entitled to a legitime. D. Its cause is not specified.

The national law of the testator determine who his III. Legal or Intestate Succession
heirs are, the order that they succeed, how much
their successional rights are, and whether or not a HEIRS (2011)
testamentary disposition in his will is valid (Article 16, In the order of intestate succession where the
NCC). Since Dr. Fuentes was a US citizen, the laws of decedent is legitimate, who is the last intestate heirs
New York determines who his heirs are. And since or heir who will inherit if all heirs in the higher level
New York law does not recognize compulsory heirs, are disqualified or unable to inherit?
Jay is not a compulsory heir of Dr. Fuentes entitled
to a legitime. A. Nephews and nieces.
B. Brothers and sisters.
REVOCATION (2012) C. State.
Ramon, a Filipino, executed a will in Manila, where D. Other collateral relatives up to the 5th degree
he left his house and lot located in BF Homes of consanguinity.
Paranaque in favor of his Filipino son, Ramgen.
Ramon's other children RJ and Ramona, both DIVISION OF ESTATE (2011)
Turkish nationals are disputing the bequest of The decedent died intestate leaving an
Ramgen. They plotted to kill Ramgen. Ramon estate of P10 million. He left the following heirs:
learned of the plot, so he tore his will in two pieces a) Marlon, a legitimate child and b) Cecilia,
out of anger. Which statement is most accurate? the legal spouse. Divide the estate.

A. The mere act of Ramon Sr. is immaterial A. Marlon gets 1/4 and Cecilia gets 3/4.
because the will is still readable. B. Marlon gets 2/3 and Cecilia 1/3.
B. The mere act of tearing the will amounts to C. Marlon gets 1/2 and Cecilia gets 1/2.
revocation. D. Marlon gets 3/4 and Cecilia 1/4.
C. The tearing of the will may amount to
revocation if coupled with intent of revoking it.
D. The act of tearing the will is material.
T died intestate, leaving an estate of P9,000,000. He
left as heirs three legitimate children, namely, A, B,
DISALLOWANCE (2012) and C. A has two children, D and E. Before he died,
The following are the grounds for disallowance of A irrevocably repudiated his inheritance from T in a
wills, except: public instrument filed with the court. How much, if
any, will D and E, as As children, get from Ts
A. The formalities required by law have not been estate?
complied with.
B. The testator was insane or mentally incapable
of making will. A. Each of D and E will get P1,500,000 by right of
C. The will was executed through force or under representation since their father repudiated his
duress, or influence of fear or threats. inheritance.
D. The will contains an attestation clause. B. Each of D and E will get P2,225,000 because
they will inherit from the estate equally with B
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and C. incapacity:
C. D and E will get none because of the 3 children by first marriage --------- 1/6th of the
repudiation; B and C will get As share by estate for each
right of accretion. 2 children by second marriage -----1/6th of the
D. Each of D and E will get P2,000,000 because the estate for each
law gives them some advantage due to the surviving second spouse ------------1/6th of the
demise of A. estate
B. If the ground of nullity is not psychological
DIVISION OF ESTATE (2010) incapacity
The spouses Peter and Paula had three (3) children. 2 legitimate children --------- 1/4 of the estate for
Paula later obtained a judgment of nullity of each of second marriage
marriage. Their absolute community of property surviving second spouse ------------1/4 of the estate
having been dissolved, they delivered P1 million to 3 illegitimate children --------- 1/12 of the estate for
each of their 3 children as their presumptive each of first marriage
legitimes. Peter later re-married and had two (2)
children by his second wife Marie. Peter and Marie, Note: The legitime of an illegitimate child is
having successfully engaged in business, acquired supposed to be the legitime of a legitimate child
real properties. Peter later died intestate. or 1/8th of the estate. But the estate will not be
sufficient to pay the said legitimes of the 3
a. Who are Peters legal heirs and how will his estate illegitimate children, because only of the estate is
be divided among them? (5%) left after paying the legitime of the surviving spouse
spouse which is preferred. Hence, the remaining
SUGGESTED ANSWER: of the estate shall be divided among the 3
The legal heirs of Peter are his children by the first illegitimate children.
and second marriages and his surviving second b. What is the effect of the receipt by Peters 3
wife. children by his first marriage of their presumptive
Their shares in the estate of Peter will depend, legitimes on their right to inherit following Peters
however, on the cause of the nullity of the first death? (5%)
marriage. If the nullity of the first marriage was
psychological incapacity of one or both spouses, SUGGESTED ANSWER:
the three children of that void marriage are In the distribution of Peters estate, one-half of the
legitimate and all of the legal heirs shall share the presumptive legitime received by the three children
estate of Peter in equal shares. If the judgment of of the first marriage shall be collated to Peters
nullity was for other causes, the three children are estate and shall be imputed as an advance on
illegitimate and the estate shall be distributed such their respective inheritance from Peter. Only half of
that an illegitimate child of the first marriage the presumptive legitime is collated to the estate of
receive half the share of a legitimate child of the Peter because the other half shall be collated to
second marriage, and the second wife will inherit a the estate of his first wife.
share equal to that of a legitimate child. In no case
may the two legitimate children of the second DIVISION OF ESTATE (2013)
marriage receive a share less than one-half of the Armand died intestate. His full-blood brothers,
estate which is their legitime. When the estate is not Bobby and Conrad, and half-blood brothers,
sufficient to pay all the legitimes of the compulsory Danny, Edward and Floro, all predeceased him. The
heirs, the legitime of the spouse is preferred and the following are the surviving relatives:
illegitimate children will suffer the reduction.
Computation: Benny and Bonnie, legitimate children of Bobby;
A. If the ground of nullity is psychological Cesar, legitimate child of Conrad;
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Dante, illegitimate child of Danny; The legal relationship created by adoption is strictly
Ernie, adopted child of Edward; and between the adopted and the adopted. It does
Felix, grandson of Floro. not extend to the relatives of either party (Sayson v.
CA, G. R. Nos. 89224-25, January 23, 1992).
The net value of Armands estate is P1,200,000.
[Note: E. None of the above is another answer because
a. How much do Benny and Bonnie stand to inherit Ernie has no share at all in the net estate].
by right of representation? (1%)
d. How much is Felixs share in the net estate? (1%)
A. P200,000
B. P300,000 A. P400,000.
C. P400,000 B. P150,000.
D. P150,000 C. P300,000.
E. None of the above. D. P0.
E. None of the above.
If all the brothers/sisters are disqualified to inherit,
the nephews/nieces inherit per capita, and not by In the collateral line, representation is granted only
right of representation (Art. 975, Civil Code). to children of brothers or sisters, Felix is a grandson
of a predeceased brother.
b. How much is Dantes share in the net estate?
(1%) [Note: E. None of the above is another answer
because Felix has no share at all in the net estate].
A. P150,000
B. P200,000 DIVISION OF ESTATE (2009)
C. P300,000 Ramon Mayaman died intestate, leaving a net
D. P400,000 estate of P10,000,000.00. Determine how much
E. None of the above. each heir will receive from the estate:

There is no showing that Danny is an illegitimate a. If Ramon is survived by his wife, three full-blood
half-blood brother of Armand. In the absence of brothers, two half-brothers, and one nephew (the
proof to the contrary, the law presumes that the son of a deceased full-blood brother)? Explain. (3%)
relationship is legitimate. Thus, Dante, an illegitimate
child of Danny, is barred from inheriting from SUGGESTED ANSWER:
Armand pursuant to the iron curtain rule which Having died intestate, the estate of Ramon shall be
disqualifies an illegitimate child from inheriting ab inherited by his wife and his full and half blood
intestato from the legitimate children and relatives siblings or their respective representatives. In
of his father or mother, and vice versa (Art. 992, Civil intestacy, if the wife concurs with no one but the
Code). siblings of the husband, all of them are the intestate
heirs of the deceased husband. The wife will
c. How much is Ernies share in the net estate? (1%) receive half of the intestate estate, while the siblings
or their respective representatives, will inherit the
A. P0. other half to be divided among them equally. If
B. P400,000. some siblings are of the full-blood and the others of
C. P150,000. the half blood, a half blood sibling will receive half
D. P200,000. the share of a full-blood sibling.
E. None of the above. 1. The wife of Ramon will, therefore, receive once
half of the estate or the amount of
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P5,000,000.00, to the common law wife as her share in the co-

2. The three (3) full-blood brothers, will, therefore, ownership, while the other half of P50,000 shall be
receive P1,000,000.00 each. the share of Ernesto that will be inherited by his
mother, and two illegitimate children. The mother
3. The nephew wil receive P1,000,000.00 by right of
will get P12,500 each. The common law wife is not a
legal heir of Ernesto because they were not legally
4. The two (2) half-brothers will receive P500,000.00 married.
If there was an impediment for Ernesto and his
b. If Ramon is survived by his wife, a half-sister, and common law wife to marry each other, the
three nephews (sons of a deceased full-blood P100,000 will be owned by Ernesto alone, the
brother)? Explain. common law wife not having contributed to its
acquisition (Art. 148, Family Code). It shall be
inherited by his mother who will get P50,000, and his
two illegitimate sons who will get 25,000 each.
The wife will receive one half of the estate or
P5,000,000.00. The other half shall be inherited by INTESTATE SUCCESSION (2011)
(1)the full-blood brother, represented by his 3 A court declared Ricardo, an old bachelor, an
children and (2)the half-sister. They will divide that absentee and appointed Cicero administrator of
other half between them such that the share of the his property. After a year, it was discovered that
half-sister is just half of the share of the full-blood Ricardo had died abroad. What is the effect of the
fact of his death on the administration of his
brother. The share of the full-blood brother shall in
turn be inherited by the three (2) nephews in equal
shares by right of representation. A. With Ricardo no longer an absentee but a
deceased person, Cicero will cease to be
Therefore, the three (3) nephews will receive administrator of his properties.
P1,111,111.10 each and the half-sister will receive B. The administration shall be given by the court
the sum of P1,666,666.60. having jurisdiction over the intestate
proceedings to a new administrator whom it will
Ernesto, an overseas Filipino worker, was coming C. Cicero automatically becomes administrator of
home to the Philippines after working for so many Ricardos estate until judicially relieved.
years in the Middle East. He had saved P100,000 in D. Ciceros alienations of Ricardo's property will be
his saving account in Manila which intended to use set aside.
to start a business in his home country. On his flight
home, Ernesto had a fatal heart attack. He left INTESTATE SUCCESSION (2009)
behind his widowed mother, his common-law wife Dr. Lopez, a 70-year old widower, and his son
and their twins sons. He left no will, no debts, no Roberto both died in a fire that gutted their home
other relatives and no other properties except the while they were sleeping in their air-conditioned
money in his saving account. Who are the heirs rooms. Robertos wife, Marilyn, and their two
entitled to inherit from him and how much should children were spared because they were in the
each receive? (3%) province at the time. Dr. Lopez left an estate worth
P20M and a life insurance policy in the amount of
SUGGESTED ANSWER: P1M with his three children --- one of whom is
If the 100,000 peso savings came from wages and Roberto --- as beneficiaries.
salaries that Ernesto earned during the time that he
was cohabiting with his common law wife, and Marilyn is now claiming for herself and her children
there was no impediment for them to marry each her husbands share in the estate left by Dr. Lopez,
other, the P100,000 shall be owned by them in and her husbands share in the proceeds of Dr.
equal shares under Article 147 of the Family Code. Lopezs life insurance policy. Rule on the validity of
Therefore, one half thereof, or P50,000, shall belong Marilyns claims with reasons. (4%)

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SUGGESTED ANSWER: is valid even though not in writing.

As to the Estate of Dr. Lopez: Marilyn is not entitled
to a share in the estate of Dr. Lopez. For purposes of ANOTHER SUGGESTED ANSWER:
succession, Dr. Lopez and his son Roberto are TRUE. An oral contract of partnership is valid even
presumed to have died at the same time, there though not in writing. However, if it involves
being no evidence to prove otherwise, and there contribution of an immovable property or a real
shall be no transmission of rights from one to the right, an oral contract of partnership is void. In such
other (Article 43, NCC). Hence, Roberto inherited a case, the contract of partnership to be valid,
nothing from his father that Marilyn would in turn must be in a public instrument. (Art. 1771. NCC),
inherit from Roberto. The children of Roberto, and the inventory of said property signed by the
however, will succeed their grandfather, Dr. Lopez, parties must be attached to said public instrument.
in representation of their father Roberto and
together will receive 1/3 of the estate of Dr. Lopez, ANOTHER SUGGESTED ANSWER:
since their father Roberto was one of the three TRUE. partnership is a consensual contract, hence it
children of Dr. Lopez. Marilyn cannot represent her is valid even though not in writing. The oral contract
husband Roberto because the right is not given by of partnership is also valid even if an immovable
law to a surviving spouse. property or real right is contributed thereto. While
the law, in such a case, requires the partnership to
As to the proceeds of the insurance on the life of be in a public document, the law does not
Dr. Lopez: Since succession is not involved as expressly declare the contract void if not executed
regards the insurance contract, the provisions of in the required form. (Article 1409[7], NCC). And
the Rules of Court (Rule 131, Sec. 3 [jj] [5]) on there being nothing in the law from which it can be
survivorship shall apply. Under the Rules, Dr. Lopez, inferred that the said requirement is prohibitory or
who was 70 years old, is presumed to have died mandatory (article 5, NCC0, the said oral contract
ahead of Roberto, who is presumably between the of partnership must also be valid. The interested
ages of 15 and 60. Having survived the insured, party may simply require the contract to be made
Roberto's right as a beneficiary became vested into a public document in order to comply with the
upon the death of Dr. Lopez. When Roberto died required form (Article 1357, NCC). The purpose of
after Dr. Lopez, his right to receive the insurance the law in requiring a public document is simply to
proceeds became part of his hereditary estate, notify the public about the contribution.
which in turn was inherited in equal shares by his
legal heirs, namely his spouse and children. II. Rights and Obligations of Partnership
Therefore, Roberto's children and his spouse are
entitled to Roberto's one-third share in the insurance
III. Rights and Obligations of Partners
Among Themselves
IV. Provisions Common to Testate and
Intestate Succession
The liability of the partners, including industrial
partners for partnership contracts entered into in its
Exclude: Executors and administrators (Arts. 1058-
name and for its account, when all partnership
1060, Civil Code), which will be covered under
assets have been exhausted is
Remedial Law
A. Pro-rata.
B. Joint.
D. Voluntary.
I. Contract of Partnership
FORMALITIES (2009) A, B, and C entered into a partnership to operate a
An oral partnership is valid. restaurant business. When the restaurant had gone
past break-even stage and started to garner
SUGGESTED ANSWER: considerable profits, C died. A and B continued the
TRUE. partnership is a consensual contract, hence, it business without dissolving the partnership. They in
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fact opened a branch of the restaurant, incurring

obligations in the process. Creditors started a. Assuming that the just and equitable share of the
demanding for the payment of their obligations. industrial partner, P, in the profit in 2006 amounted
a. Who are liable for the settlement of the to P100,000, how much is the share of O, a limited
partnerships obligations? Explain? (3%) partner, in the P800,000 net profit? (1%)


The two remaining partners, A and B, are liable. B. P175,000.
When any partner dies and the business is C. P280,000.
continued without any settlement of accounts as D. P200,000.
between him or his estate, the surviving partners are E. None of the above.
held liable for continuing the business despite the
death of C (Articles 1841, 1785, par 2, and 1833 First, deduct the share of P from the profits. P800,000
NCC) less P100,000 is P700,000. Next, get the share of O by
following the proportion that the shares of L, M, N, O
b. What are the creditors recourse/s? Explain. (3%) is 1:1:1:2, respectively.

SUGGESTED ANSWER: b. In 2007, how much is the share of O, a limited

Creditors can file the appropriate actions, for partner, in the net loss of P800,000? (1%)
instance, an action for the collection of sum of
money against the partnership at will and if there A. P 0.
are no sufficient funds, the creditors may go after B. P100,000.
the private properties of A and B (Article 816, NCC). C. P125,000.
Creditors may also sue the estate of C. The estate is D. P200,000.
not excused from the liabilities of the partnership E. None of the above.
even if C is dead already but only up to the time
that he remained a partner (Article 1829, 1835, par A limited partner shall not become liable as a
2; NCC, Testate Estate of Mota v. Serra, 47 Phil. 464 general partner unless, in addition to the exercise of
[1925]). However, the liability of Cs individual his rights and powers as a limited partner, he takes
property shall be subject first to the payment of his part in the control of the business (Art. 1848, Civil
separate debts (Article 1835, NCC). Code). In the absence of stipulation as to profits
and losses, the share of each partner in the losses
LIMITED PARTNER SHARE AND LIABILITY (2013) shall be in proportion to what he may have
In 2005, L, M, N, O and P formed a partnership. L, M contributed. (Art. 1797).
and N were capitalist partners who contributed
P500,000 each, while O, a limited partner, IV. Obligations of Partnership/ Partners to
contributed P1,000,000. P joined as an industrial Third Persons
partner, contributing only his services. The Articles of
Partnership, registered with the Securities and PARTNERS LIABILITY TO CREDITORS (2013)
Exchange Commission, designated L and O as In 2005, L, M, N, O and P formed a partnership. L, M
managing partners; L was liable only to the extent and N were capitalist partners who contributed
of his capital contribution; and P was not liable for P500,000 each, while O, a limited partner,
losses. contributed P1,000,000. P joined as an industrial
partner, contributing only his services. The Articles of
In 2006, the partnership earned a net profit of Partnership, registered with the Securities and
P800,000. In the same year, P engaged in a Exchange Commission, designated L and O as
different business with the consent of all the managing partners; L was liable only to the extent
partners. However, in 2007, the partnership incurred of his capital contribution; and P was not liable for
a net loss of P500,000. In 2008, the partners dissolved losses.
the partnership. The proceeds of the sale of
partnership assets were insufficient to settle its In 2006, the partnership earned a net profit of
obligation. After liquidation, the partnership had an P800,000. In the same year, P engaged in a
unpaid liability of P300,000.
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different business with the consent of all the

partners. However, in 2007, the partnership incurred IV. Agency by Estoppel
a net loss of P500,000. In 2008, the partners dissolved
the partnership. The proceeds of the sale of
partnership assets were insufficient to settle its
V. General vs. Special Agency
obligation. After liquidation, the partnership had an
unpaid liability of P300,000. VI. Agency Couched in General Terms

Can the partnership creditors hold L, O, and P liable VII. Agency Requiring Special Power of
after all the assets of the partnership are Attorney
exhausted? (1%)
A. Yes. The stipulation exempting P from losses is X was the owner of an unregistered parcel of land
valid only among the partners. L is liable in Cabanatuan City. As she was abroad, she
because the agreement limiting his liability to his advised her sister Y via overseas call to sell the land
capital contribution is not valid insofar as the and sign a contract of sale on her behalf.
creditors are concerned. Having taken part in
the management of the partnership, 0 is liable Y thus sold the land to B1 on March 31, 2001 and
as capitalist partner. executed a deed of absolute sale on behalf of X.
B. No. P is not liable because there is a valid B1 fully paid the purchase price.
stipulation exempting him from losses. Since the
other partners allowed him to engage in an B2, unaware of the sale of the land to B1, signified
outside business activity, the stipulation to Y his interest to buy it but asked Y for her authority
absolving P from liability is valid. For 0, it is basic from X. Without informing X that she had sold the
that a limited partner is liable only up to the land to B1, Y sought X for a written authority to sell.
extent of his capital contribution.
C. Yes. The stipulations exempting P and L from X e-mailed Y an authority to sell the land. Y
losses are not binding upon the creditors. 0 is thereafter sold the land on May 1, 2001 to B2 on
likewise liable because the partnership was not monthly installment basis for two years, the first
formed in accordance with the requirements of installment to be paid at the end of May 2001.
a limited partnership.
D. No. The Civil Code allows the partners to Who between B1 and B2 has a better right over the
stipulate that a partner shall not be liable for land? Explain. (5%)
losses. The registration of the Articles of
Partnership embodying such stipulations serves SUGGESTED ANSWER:
as constructive notice to the partnership B-2 has a better title. This is not a case of double
creditors. sale since the first sale was void. The law provides
E. None of the above is completely accurate. that when a sale of a piece of land or any interest
therein is through an agent, the authority of the
V. Dissolution latter shall be in writing; otherwise, the sale shall be
void (Art 1874, NCC). The property was sold by Y to
VI. Limited Partnership B1 without any written authority from the owner X.
Hence, the sale to B1 was void.


AGENCY Under the facts, B-1 has a better right to the land.
Given the fact that the Deed of Sale in favor of B-1
I. Definition of Agency and B-2 are not inscribed in the Registry of Deeds,
the case is governed by Article 1544 of the New
II. Powers Civil Code which provides that in case of double
sales of an immovable property, the ownership shall
pertain to the person who in good faith was first in
III. Express vs. Implied Agency
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possession and in the absence thereof to the

person who presents the oldest title, provided there SUGGESTED ANSWER:
is good faith. In a case, the Supreme Court has held True. The Civil Code provides that "Any clause
that in a sale of real estate the execution of a giving one of the parties power to choose more
notarial document of sale is tantamount to delivery arbitrators than the other is void and of no effect"
of the possession of the property sold. Ownership of (Art. 2045,NCC).
the land therefore pertains to the 1st buyer. It may
also be mentioned that under Act 3344 no II. Void Compromise
instruments or deed establishing, transmitting,
acknowledging, modifying, or extinguishing right to
real property not registered under Act 496 shall be
III. Effect
valid except as between the parties. Thus, the
Deed of Sale of B-2 has no binding effect on B-1.
X, who was abroad, phoned his brother, Y, I. Loan
authorizing him to sell Xs parcel of land in Pasay. X
sent the title to Y by courier service. Acting for his LIABILITY (2012)
brother, Y executed a notarized deed of absolute A debtor is liable for damages in case of delay if he
sale of the land to Z after receiving payment. What is guilty of any of the following, except:
is the status of the sale?
A. default (mora)
A. Valid, since a notarized deed of absolute sale B. mistake
covered the transaction and full payment was C. negligence (culpa)
made. D. breach through contravention of the tenor
B. Void, since X should have authorized agent Y in thereof
writing to sell the land.
C. Valid, since Y was truly his brother Xs agent and RIGHTS OF CREDITOR (2012)
entrusted with the title needed to effect the The creditor has the right to the fruits of the thing
sale. from the time:
D. Valid, since the buyer could file an action to
compel X to execute a deed of sale. A. the thing is delivered.
B. the obligation to deliver the thing arises.
VIII. Agency by Operation of Law C. the contract is perfected.
D. the fruits are delivered.
IX. Rights and Obligations of Principal
The borrower in a contract of loan or mutuum must
X. Irrevocable Agency
pay interest to the lender.

XI. Modes of Extinguishment A. If there is an agreement in writing to that effect.

B. As a matter of course.
C. If the amount borrowed is very large.
COMPROMISE D. If the lender so demands at the maturity date.

I. Definition Siga-an granted a loan to Villanueva in the amount
of P540,000.00. Such agreement was not reduced
ARBITRATION (2009) to writing. Siga-an demanded interest which was
A clause in an arbitration contract granting one of paid by Villanueva in cash and checks. The total
the parties the power to choose more arbitrators amount Villanueva paid accumulated to
than the other renders the arbitration contract void. P1,200,000.00. Upon advice of her lawyer,
True or False?
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Villanueva demanded for the return of the excess thing loaned.

amount of P660,000.00 which was ignored by Siga- B. Yes, Jose's refusal is justified. He is obliged to pay
an. for all the ordinary and extraordinary expenses,
but subject to reimbursement from Cruz.
a. Is the payment of interest valid? Explain. (3%) C. Yes, Joses refusal is justified. The principle of
unjust enrichment warrants the reimbursement
SUGGESTED ANSWER: of Jose's expenses.
NO, Article 1956, Civil Code, provides that no D. No, Jose's refusal is not justified. The expenses he
interest shall be due unless it has been expressly incurred are useful for the preservation of the
stipulated in writing. thing loaned. It is Jose's obligation to shoulder
these useful expenses.
b. Is solutio indebiti applicable? Explain. (2%)
In commodatum, the bailee is obliged to pay for
SUGGESTED ANSWER: the ordinary expenses for the use and preservation
YES, solution indebiti is applicable because of the thing loaned (Article 1941, Civil Code).
Villanueva overpaid by P660,000, representing
interest payment which is not due. He can, The bailee, Jose, has no right of retention on the
therefore, demand its return. ground that the bailor owes him something, even if
it may be by reason of expenses. He can only retain
LOAN (2011) it if he suffers damages by reason of a flaw or
X borrowed money from a bank, secured by a defect in the thing loaned of which the bailor
mortgage on the land of Y, his close friend. When knows (Art. 1951, Civil Code).
the loan matured, Y offered to pay the bank but it
refused since Y was not the borrower. Is the banks During the bar exam month, Jose lent the car to his
action correct? girlfriend, Jolie, who parked the car at the Mall of
Asia's open parking lot, with the ignition key Inside
A. Yes, since X, the true borrower, did not give his the car. Car thieves broke into and took the car.
consent to Ys offer to pay.
B. No, since anybody can discharge Xs obligation COMMODATUM OBLIGATIONS OF THE BAILEE
to his benefit. (2013)
C. No, since Y, the owner of the collateral, has an During the bar exam month, Jose lent the car to his
interest in the payment of the obligation. girlfriend, Jolie, who parked the car at the Mall of
D. Yes, since it was X who has an obligation to the Asia's open parking lot, with the ignition key Inside
bank. the car. Car thieves broke into and took the car.

COMMODATUM REIMBURSEMENT (2013) Is Jose liable to Cruz for the loss of the car due to
Cruz lent Jose his car until Jose finished his Bar Jolie's negligence? (1%)
exams. Soon after Cruz delivered the car, Jose
brought it to Mitsubishi Cubao for maintenance A. No, Jose is not liable to Cruz as the loss was not
checkup and incurred costs of P8,000. Seeing the due to his fault or negligence.
car's peeling and faded paint, Jose also had the B. No, Jose is not liable to Cruz. In the absence of
car repainted for P10,000. Answer the two questions any prohibition, Jose could lend the car to Jolie.
below based on these common facts. Since the loss was due to force majeure, neither
Jose nor Jolie is liable.
After the bar exams, Cruz asked for the return of his C. Yes, Jose is liable to Cruz. Since Jose lent the car
car. Jose said he would return it as soon as Cruz has to Jolie without Cruz's consent, Jose must bear
reimbursed him for the car maintenance and the consequent loss of the car.
repainting costs of P18,000. Is Jose's refusal justified? D. Yes, Jose is liable to Cruz. The contract between
(1%) them is personal in nature. Jose can neither
lend nor lease the car to a third person.
A. No, Jose's refusal is not justified. In this kind of
contract, Jose is obliged to pay for all the The bailee is liable for the loss of the thing, even if it
expenses incurred for the preservation of the should be through a fortuitous event if he lends or
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leases the thing to a third person who is not a TRUE. An oral promise of guaranty is valid and
member of his household (Art. 1942, Civil Code). binding. While the contract is valid, however, it is
unenforceable because it is not in writing. Being a
II. Deposit special promise to answer for debt, default, or
miscarriage of another, the Stature of Frauds
DEPOSIT BANK (2009) requires it to be in writing to be enforceable (Article
Sarah had a deposit in a savings account with 1403 [2] b, NCC). The validity of a contract should
Filipino Universal Bank in the amount of five million be distinguished from its enforceability.
pesos (P5,000,000.00). To buy a new car, she
obtained a loan from the same bank in the amount CREDIT GUARANTY VS. SURETYSHIP (2010)
of P1,200,000.00, payable in twelve monthly What is the difference between "guaranty" and
installments. Sarah issued in favor of the bank post- "suretyship"?
dated checks, each in the amount of P100,000.00,
to cover the twelve monthly installment payments. SUGGESTED ANSWER:
On the third, fourth and fifth months, the Guaranty and Suretyship distinguished:
corresponding checks bounced. 1) The obligation in guaranty is secondary; whereas,
in suretyship, it is primary.
The bank then declared the whole obligation due, 2) In guaranty, the undertaking is to pay if the
and proceeded to deduct the amount of one principal debtor cannot pay; whereas, in suretyship,
million pesos (P1,000,000.00) from Sarahs deposit the undertaking is to pay if the principal debtor
after notice to her that this is a form of does not pay.
compensation allowed by law. Is the bank correct? 3) In guaranty, the guarantor is entitled to the
Explain. (4%) benefit of excussion; whereas, in suretyship, the
surety is not so entitled.
SUGGESTED ANSWER: 4) Liability in guaranty depends upon an
No, the bank is not correct. While the Bank is independent agreement to pay the obligations of
correct about the applicability of compensation, it the principal if he fails to do so; whereas, in
was not correct as to the amount compensated. suretyship, the surety assumes liability as a regular
A bank deposit is a contract of loan, where the 5) The Guarantor insures the solvency of the
depositor is the creditor and the bank the debtor. principal debtor; whereas, the surety insures the
Since Sarah is also a debtor of the bank with debt.
respect to the loan, both are mutually principal 6) In a guaranty, the guarantor is subsidiarily liable;
debtors and creditors of each other. Both wheareas, in a suretyship, the surety binds himself
obligations are due, demandable and liquidated solidarily with the principal debtor.
but only up to the extent of P300,000. The bank (Art. 2047, Civil Code)
therefore, may deduct P300,000 pesos from Sarah's
bank deposit by way of compensation. GUARANTOR LIABILITY (2013)
Amador obtained a loan of P300,000 from Basilio
III. Guaranty and Suretyship payable on March 25, 2012. As security for the
payment of his loan, Amador constituted a
GUARANTY FORMALITIES (2009) mortgage on his residential house and lot in Basilio's
An oral promise of guaranty is valid and binding. favor. Cacho, a good friend of Amador,
True or False? guaranteed and obligated himself to pay Basilio, in
case Amador fails to pay his loan at maturity.
FALSE. An oral contract of guaranty, being a If Amador fails to pay Basilio his loan on March 25,
special promise to answer for the debt of another, is 2012, can Basilio compel Cacho to pay?
unenforceable unless in writing. (Article 1403 [2] b,
NCC). A. No, Basilio cannot compel Cacho to pay
because as guarantor, Cacho can invoke the
ANOTHER SUGGESTED ANSWER: principle of excussion, i.e., all the assets of Basilio
must first be exhausted.
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B. No, Basilio cannot compel Cacho to pay thereof may recover it from the person in
because Basilio has not exhausted the available possession of the same. Tambunting's claim of
remedies against Amador. good faith is inconsequential.
C. Yes, Basilio can compel Cacho to pay because B. I will rule in favor of Betty. Tambunting's claim of
the nature of Cachos undertaking indicates good faith pales into insignificance in light of
that he has bound himself solidarily with the unlawful deprivation of the jewelries.
Amador. However, equity dictates that Tambunting- must
D. Yes, Basilio can compel Cacho who bound be reimbursed for the pawn value of the
himself to unconditionally pay in case Amador jewelries.
fails to pay; thus the benefit of excussion will not C. I will rule in favor of Tambunting. Its good faith
apply. takes precedence over the right of Betty to
recover the jewelries.
The guarantor cannot be compelled to pay the D. I will rule in favor of Tambunting. Good faith is
creditor unless the latter has exhausted all the always presumed. Tambunting's lawful
property of the debtor and has resorted to all the acquisition in the ordinary course of business
legal remedies against the debtor (Art. 2058, Civil coupled with good faith gives it legal right over
Code). the jewelries.

[Note: A is not the correct answer because it states that Tambunting's claim of good faith is inconsequential.
all the assets of Basilio (the creditor) must first be
exhausted]. Although possession of movable property acquired
in good faith is equivalent to a title, nevertheless,
one who has lost any movable or has been
IV. Pledge unlawfully deprived thereof may recover it from the
person in possession of the same. Betty has been
PURCHASER GOOD FAITH (2013) deprived unlawfully of her jewelries by the estafa
Betty entrusted to her agent, Aida, several pieces committed by Aida. The pledge of said jewelries by
of jewelry to be sold on commission with the express Aida to Tambunting Pawnshop is void because the
obligation to tum over to Betty the proceeds of the pledgor is not the owner (Article 2085 (2), Civil
sale, or to return the jewelries if not sold in a month's Code). Tambunting's claim of good faith is
time. Instead of selling the jewelries, Aida pawned inconsequential, because, aside from good faith
them with the Tambunting Pawnshop, and used the Tambunting must prove also that it acquired the
money for herself. Aida failed to redeem the jewelries at a public sale in order to be able to
pawned jewelries and after a month. Betty retain the jewelries until reimbursed by Betty the
discovered what Aida had done. Betty brought amount of the loan including interest. (Art. 559, Civil
criminal charges which resulted in Aida's conviction Code).
for estafa.
The only exception the law allows is when there is
Betty thereafter filed an action against Tambunting acquisition in good faith of the possessor at a public
Pawnshop for the recovery of the jewelries. sale, in which case the owner cannot obtain its
Tambunting raised the defense of ownership, return without reimbursing the price (Dizon v.
additionally arguing that it is duly licensed to Suntay, 47 SCRA 160, September 29, 1972).
engage in the pawnshop and lending business,
and that it accepted the mortgage of the jewelry PLEDGE PACTUM COMMISORIUM (2009)
in good faith and in the regular course of its Rosario obtained a loan of P100,000.00 from
business. Jennifer, and pledged her diamond ring. The
contract signed by the parties stipulated that if
If you were the judge, how will you decide the Rosario is unable to redeem the ring on due date,
case? she will execute a document in favor of Jennifer
providing that the ring shall automatically be
A. I will rule in favor of Betty. My ruling is based on considered full payment of the loan.
the Civil Code provision that one who has lost
any movable or has been unlawfully deprived a. Is the contract valid? Explain. (3%)
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SUGGESTED ANSWER: If Amador sells his residential house and lot to

The contract is valid because Rosario has to Diego, can Basilio foreclose the real estate
execute a document in favor of Jennifer to transfer mortgage? (1%)
the ownership of the pledged ring to the latter. The
contract does not amount to a pactum A. Yes, Basilio can foreclose the real estate
commissorium because it does not provide for the mortgage because real estate mortgage
automatic appropriation by the pledgee of the creates a real right that attaches to the
thing pledged in case of default by the pledgor. property.
b. Will your answer to [a] be the same if the B. Yes, Basilio can foreclose the real estate
contract stipulates that upon failure of Rosario to mortgage: It is binding upon Diego as the
redeem the ring on due date, Jennifer may mortgage is embodied in a public instrument.
immediately sell the ring and appropriate the entire C. No, Basilio cannot foreclose the real estate
proceeds thereof for herself as full payment of the mortgage. The sale confers ownership on the
loan? Reasons. (3%) buyer, Diego, who must therefore consent.
D. No, Basilio cannot foreclose the real estate
SUGGESTED ANSWER: mortgage. To deprive the new owner of
No, my answer will be different. While the contract ownership and possession is unjust and
of pledge is valid, the stipulation authorizing the inequitable.
pledgee to immediately sell the thing pledged is
void under Article 2088 of the New Civil Code which Since the mortgage is in a public instrument, there is
provides that: "The creditor cannot appropriate the constructive notice to Diego, who is the buyer of
things given by way of pledge or mortgage, or the mortgaged property.
dispose of them x x ". Jennifer cannot immediately
sell by herself the thing pledged. It must be ALTERNATIVE ANSWER:
foreclosed with the procedure under Article 2112 of C. No, Basilio cannot foreclose the real estate
the New Civil Code. mortgage. The sale confers ownership on the buyer,
Diego, who must therefore consent.
V. Real Mortgage
The mortgage is not registered, thus, cannot be
Include: Act 3135, as amended by R.A. No. 4118
binding against third persons. (Art. 2125, Civil Code)


The right of a mortgagor in a judicial foreclosure to Eduardo was granted a loan by XYZ Bank for the
redeem the mortgaged property after his default in purpose of improving a building which XYZ leased
the performance of the conditions of the mortgage from him. Eduardo, executed the promissory note
but before the sale of the mortgaged property or ("PN") in favor of the bank, with his friend Recardo
confirmation of the sale by the court, is known as as co-signatory. In the PN, they both
acknowledged that they are "individually and
A. accion publiciana. collectively" liable and waived the need for prior
B. equity of redemption. demand. To secure the PN, Recardo executed a
C. pacto de retro. real estate mortgage on his own property. When
D. right of redemption. Eduardo defaulted on the PN, XYZ stopped
payment of rentals on the building on the ground
FORECLOSURE (2013) that legal compensation had set in. Since there was
Amador obtained a loan of P300,000 from Basilio still a balance due on the PN after applying the
payable on March 25, 2012. As security for the rentals, XYZ foreclosed the real estate mortgage
payment of his loan, Amador constituted a over Recardo's property. Recardo opposed the
mortgage on his residential house and lot in Basilio's foreclosure on the ground that he is only a co-
favor. Cacho, a good friend of Amador, signatory; that no demand was made upon him for
guaranteed and obligated himself to pay Basilio, in payment, and assuming he is liable, his liability
case Amador fails to pay his loan at maturity. should not go beyond half the balance of the loan.
Further, Recardo said that when the bank invoked
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compensation between the rentals and the then they were already in default and foreclosure
amount of the loan, it amounted to a new contract was proper. However, if demand was not made,
or novation, and had the effect of extinguishing the then the loans had not yet become due and
security since he did not give his consent (as owner demandable. This meant that respondents had not
of the property under the real estate mortgage) defaulted in their payment and the foreclosure was
thereto. premature.

a. Can XYZ Bank validly assert legal compensation? ALTERNATIVE ANSWER:

(2%) No. Although the principal obligation of loan is due
and demandable without need of further demand
MAIN SUGGESTED ANSWER: the foreclosure of the accessory contract of real
XYZ Bank may validly assert the partial estate mortgage, there is a need of notice and
compensation of both debts, but it should be demand.
facultative compensation because not all of the
five requisites of legal compensation are present ANOTHER ANSWER:
(Article 1279, NCC). The payment of the rentals of Yes. Recardos property can be foreclosed to pay
XYZ Bank is not yet due, but the principal obligations the full balance of the loan. He is admittedly
of loan where both Eduardo and Recardo are individually and collectively liable. His liability is
bound to solidarily and therefore any of them is solidary. He and Eduardo have waived notice for a
principally bound to pay the entire loan, is due and prior demand as provided in the promissory note.
demandable without need of demand. XYZ Bank
may declare its obligation to pay rentals as already c. Does Recardo have basis under the Civil Code
due and demand payment from any of the two for claiming that the original contract was
debtors. novated? (2%)


Legal compensation can be validly asserted None of the three kinds of novation is applicable.
between the bank, Eduardo and Recardo. This is a There is no objective novation, whether express of
case of facultative obligation, thus, the bank can implied, because there is no change in the object
assert partial compensation. Banks have an or principal conditions of the obligation. There is no
inherent right to set off where both obligations are substitution of debtors, either. Compensation is
due and demandable. (Art. 1279, CC) considered as abbreviated or simplified payment
and since Recardo bound himself solidarily with
b. Can Recardo's property be foreclosed to pay Eduardo, any facultative compensation which
the full balance of the loan? (2%) occurs does not result in partial legal suborgation
which occurs does not result in partial legal
MAIN SUGGESTED ANSWER: subrogation. Neither Eduardo nor Recardo is a third
No, because there was no prior demand on person interested in the obligation under Art. 1302,
Ricardo, depriving him of the right to reasonably CC.
block the foreclosure by payment. The waiver of
prior demand in the PN is against public policy and WRIT OF POSSESSION (2012)
violates the right to due process. Without demand, Does the right to request for the issuance of a writ of
there is no default and the foreclosure is null and possession over a foreclosed real property prescribe
void. Since mortgage, insofar as Recardo is in five (5) years? (5%)
concerned is not violated, a requirement under Act
3135 for a valid foreclosure of real estate mortgage SUGGESTED ANSWER:
is absent. YES, it prescribes in 5 years. If the real property
mortgaged id judicially foreclosed, the action for
In the case of DBP v. Licuanan (516 SCRA 644 [200]), judicial foreclosure should be filed within a period of
it was held that: the issue of whether demand was ten (10) years. The request for issuance of a writ of
made before the forecolsoure was effected is possession should be filed upon motion of the
essential. If demand was made and duly received winning bidder within five (5) years after the
by the respondents and the latter still did not pay, judgment of foreclosure. The writ of possession is an
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order commanding the sheriff to place a person antichretic transaction with a company, giving it
named therein in possession of real property (BPI v. possession and management of the plantation with
Icot, G.R. No. 168081, October 12, 2009). power to harvest and sell the fruits and to apply the
proceeds to the payment of a loan he got. What is
EQUITABLE MORTGAGE (2012) the standing of the contract?
Eulalia was engaged in the business of buying and
selling large cattle. In order to secure the financial A. It is void in the absence of the wifes consent.
capital, she advanced for her employees B. It is void absent an authorization from the court.
(biyaheros). She required them to surrender TCT of C. The transaction is void and can neither be
their properties and to execute the corresponding ratified by the wife nor authorized by the court.
Deeds of Sale in her favor. Domeng Bandong was D. It is considered a continuing offer by the parties,
not required to post any security but when Eulalia perfected only upon the wifes acceptance or
discovered that he incurred shortage in cattle the courts authorization.
procurement operation, he was required to
execute a Deed of Sale over a parcel of land in VII. Chattel Mortgage
favor of Eulalia. She sold the property to her
grandneice Jocelyn who thereafter instituted an Include: Act 1508
action for ejectment against the Spouses Bandong.
VIII. Quasi-contracts
To assert their right, Spouses Bandong filed an
action for annulment of sale against Eulalia and
Jocelyn alleging that there was no sale intended IX. Concurrence and Preference of
but only equitable mortgage for the purpose of Credits
securing the shortage incurred by Domeng in the
amount of P70,000.00 while employed as "biyahero" PREFERENCE OF CREDITS (2011)
by Eulalia. Was the Deed of Sale between Domeng Which of the following claims against the debtor
and Eulalia a contract of sale or an equitable enjoys preference over the others with respect to
mortgage? Explain. (5%) his specific immovable property and real rights?

SUGGESTED ANSWER: A. Unpaid price of real property sold, upon the

The contract between Domeng Bandong and immovable property.
Eulalia was an equitable mortgage rather than a B. Mortgage credits recorded in the registry of
contract of sale. The purported deed of sale was property, upon the mortgaged real estate.
actually intended to merely secure the payment of C. Taxes due, upon the land or building.
the shortage incurred by Domeng in the conduct of D. Expenses for the preservation and improvement
the cattle-buying operations. Under Article 1602, of property, when the law authorizes
Civil Code, the contract shall be presumed to be reimbursement, upon the preserved or
an equitable mortgage when it may be fairly improved immovable.
inferred that the real intention of the parties is simply
to secure the payment of a debt or the
performance of any other obligation. The present
transaction was clearly intended to just secure the
shortage incurred by Eulalia because Bandong
remained in possession of the property inspite of the I. Lease of Things
execution of the sale.
II. Lease of Work or Services
VI. Antichresis
III. Lease of Rural and Urban Lands
The husband assumed sole administration of the
LEASE (2011)
familys mango plantation since his wife worked
The term of a 5-year lease contract between X the
abroad. Subsequently, without his wifes
lessor and Y the lessee, where rents were paid from
knowledge, the husband entered into an
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month to month, came to an end. Still, Y continued cause of action does not seek to enforce any
using the property with Xs consent. In such a case, right under the contract of lease.
it is understood that they impliedly renewed the
lease Janet is not asking for the continued use of the
leased premises. Moreover, the contract is outside
A. from month to month under the same the ambit of the Statute of Frauds as the same has
conditions as to the rest. already been partially performed.
B. under the same terms and conditions as before.
C. under the same terms except the rent which EFFECT OF SALE OF LEASED PROPERTY (2009)
they or the court must fix. Jude owned a building which he had leased to
D. for only a year, with the rent raised by 10% several tenants. Without informing his tenants, Jude
pursuant to the rental control law. sold the building to Ildefonso. Thereafter, the latter
notified all the tenants that he is the new owner of
RECOVERY OF PAYMENT (2013) the building. Ildefonso ordered the tenants to
Arlene owns a row of apartment houses in vacate the premises within thirty (30) days from
Kamuning, Quezon City. She agreed to lease notice because he had other plans for the building.
Apartment No. 1 to Janet for a period of 18 months The tenants refused to vacate, insisting that they will
at the rate of P10,000 per month. The lease was not only do so when the term of their lease shall have
covered by any contract. Janet promptly gave expired. Is Ildefonso bound to respect the lease
Arlene two (2) months deposit and 18 checks contracts between Jude and his tenants? Explain
covering the rental payment for 18 months. This your answer. (3%)
show of good faith prompted Arlene to promise
Janet that should Arlene decide to sell the SUGGESTED ANSWER:
property, she would give Janet the right of first Yes, Ildefonso must respect the lease contracts
refusal. between Jude and his tenants. While it is true that
the said lease contracts were not registered and
Not long after Janet moved in, she received news annotated on the title to the property, Ildefonso is
that her application for a Master of laws scholarship still not an innocent purchaser for value. He ought
at Kings College in London had been approved. to know the existence of the lease because the
Since her acceptance of the scholarship entailed a building was already occupied by the tenants at
transfer of residence, Janet asked Arlene to return the time he bought it. Applying the principle of
the advance rental payments she made. Arlene caveat emptor, he should have checked and
refused, prompting Janet to file an action to known the status of the occupants or their right to
recover the payments. Arlene filed a motion to occupy the building before buying it.
dismiss, claiming that the lease, on which the action
is based, is unenforceable. LEASE RURAL LAND
Six tenants sued X, the landowner, for willfully
If you were the judge, would you grant Arlenes denying them water for their farms, which water
motion? happened to flow from land under Xs control, his
intention being to force them to leave his
A. Yes, I will grant the motion because the lease properties. Is X liable for his act and why?
contract between Arlene and Janet was not in
writing; hence, Janet may not enforce any right A. No, because the tenants must be content with
arising from the same contract. waiting for rainfall for their farms.
B. No, I will not grant the motion because to allow B. No, since X owns both the land and the water.
Arlene to retain the advance payments would C. Yes, because the tenants farms have the
amount to unjust enrichment. natural right of access to water wherever it is
C. Yes, I will grant the motion because the action located.
for recovery is premature; Janet should first D. Yes, since X willfully caused injury to his tenants
secure a judicial rescission of the contract of contrary to morals, good customs or public
lease. policy.
D. No. I will not grant the motion because the

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IV. Rights and Obligations of Lessor and remove the improvements, even though the
Lessee principal thing may suffer damage thereby.

IMPROVEMENTS (2013) Can Boboy be held liable for damages for

Anselmo is the registered owner of a land and a removing the improvements over Anselmo's
house that his friend Boboy occupied for a nominal objection? (4%)
rental and on the condition that Boboy would
vacate the property on demand. With Anselmo's SUGGESTED ANSWER:
knowledge, Boboy introduced renovations NO. Boboy cannot be held liable for damages. The
consisting of an additional bedroom, a covered lessor, Anselmo, refused to reimburse one-half of the
veranda, and a concrete block fence, at his own value of the improvements, so the lessee, Boboy,
expense. may remove the same, even though the principal
thing may suffer damage thereby. If in removing
Subsequently, Anselmo needed the property as his the useful improvements Boboy caused more
residence and thus asked Boboy to vacate and impairment on the property leased than is
turn it over to him. Boboy, despite an extension, necessary he will be liable for damages (Art. 1678,
failed to vacate the property, forcing Anselmo to Civil Code).
send him a written demand to vacate.
V. Special Rules for Lease of Rural/Urban
In his own written reply. Boboy signified that he was Lands
ready to leave but Anselmo must first reimburse him
the value of the improvements he introduced on
VI. Household Service (Exclude, for
the property as he is a builder in good faith.
Anselmo refused, insisting that Boboy cannot ask for
inclusion in Labor Law)
reimbursement as he is a mere lessee. Boboy
responded by removing the improvements and VII. Contract of Labor (Exclude, for
leaving the building in its original state. inclusion in Labor Law)

Resolve Boboy's claim that as a builder in good VIII. Contract for Piece of Work (Exclude, for
faith, he should be reimbursed the value of the inclusion in Labor Law)
improvements he introduced. (4%)

Boboy's claim that he is a builder in good faith has LAND TITLES AND DEEDS
no legal basis. A builder in good faith is someone
who occupies the property in the concept of an I. Torrens System
owner. The provisions on builder-planter-sower
under the Civil Code cover cases in which the
II. Regalian Doctrine
builder, planter and sower believe themselves to be
owners of the land, or at least, to have a claim of
title thereto. III. Citizenship Requirement

As Boboy is a lessee of the- property, even if he was V. Subsequent Registration

paying nominal rental, Article 1678 Civil Code, is
applicable. Under this provision, if the lessee makes, PROPERTY UNREGISTERED (2013)
in good faith, useful improvements which are Manuel was born on 12 March 1940 in a 1,000-
suitable to the use for which the lease is intended, square meter property where he grew up helping
without altering the form or substance of the his father, Michael, cultivate the land. Michael has
property leased, the lessor. Upon the termination of lived on the property since the land was opened for
the lease shall pay the lessee one-half of the value settlement at about the time of the
of the improvements at that time. Should the lessor Commonwealth government in 1935, but for some
refuse to reimburse said amount, the lessee may reason never secured any title to the property other
than a tax declaration in his name. He has held the
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property through the years in concept of an owner classified as alienable and disposable at the time
and his stay was uncontested by others. He has also the application is filed, and require possession and
conscientiously and continuously paid for realty occupation since June 12, 1945. The only difference
taxes on the land. is that under the PRD, there already exists a title
which is to be conrmed, whereas under the PLA,
Michael died in 2000 and Manuelas Michaels the presumption is that land is still public land
only son and heir now wants to secure and (Republic v. Aquino, G.R. No. L-33983, January 27,
register title to the land in his own name. He consults 1983).
you for legal advice as he wants to perfect his title
to the land and secure its registration in his name. Manuel may also invoke vested rights acquired
under Rep. Act No. 1942, dated June 2, 1957, which
What are the laws that you need to consider in amended Sec. 48 (b) of the PLA by providing for a
advising Manuel on how he can perfect his title prescriptive period of thirty years for judicial
and register the land in his name? Explain the confirmation of imperfect title. It must only be
relevance of these laws to your projected course of demonstrated that possession and occupation
action. commenced on January 24, 1947 and the 30-year
period was completed prior to the effectivity of PD
SUGGESTED ANSWER: No. 1073 on January 25, 1977. PD No. 1073 now
[NOTE: With all due respect, it is recommended that the requires possession and occupation since June 12,
examiner accept and give full credit to any of the 1945 (Republic v. Espinosa, G.R. No.171514, July 18,
answers given in each of the following paragraphs.] 2012).
l would advise Manuel to file an application for Another alternative is for Manuel to secure title
registration under Sec. 14 of Pres. Decree No. 1529, through administrative proceedings under the
or the Property Registration Decree (PRD), homestead or free patent provisions of the PLA. The
specifically Sec. 14 (1) which requires (a) that the title issued has the same efficacy and validity as a
land applied for forms part of the alienable and title issued through judicial proceedings, but with
disposable (A & D) portion of the public domain, the limitation that the land cannot be sold or
and (b) that the applicant has been in open, disposed of within five years from the issuance of
continuous and notorious possession and patent (Sec. 118, CA No. 141, as amended).
occupation thereof under a bona fide claim of
ownership since June 12, 1945, or earlier. However, What do you have to prove to secure Manuels
it is only necessary that the land is already declared objectives and what documentation are
A & D land at the time the application for necessary?
registration is led (Malabanan v. Republic, G.R.
No. 180067, June 30, 2009). SUGGESTED ANSWER:
Manuel has the burden to overcome the
Manuel could also invoke Sec. 14 (2) of the same presumption of State ownership by well-nigh
Decree, which allows registration through ordinary incontrovertible evidence (Ong v. Republic, G.R.
acquisitive prescription for thirty years, provided, No. 175746, March 12, 2008). Accordingly, he must
however, that the land is patrimonial in show that the land is already classied as A&D at
character, i.e. already declared by the the time the application for registration is led and
government (a) as A & D land, and (b) no longer that he has been in possession and occupation
needed for public use or public service thereof in the manner required by law since June
(Malabanan, supra). 12, 1945, or earlier.
Manuel could also file an application for Manuel may tack his possession to that of his
confirmation of imperfect or incomplete title predecessor in interest (Michael) by the testimony
through judicial legalization under See. 48 (b)of of disinterested and knowledgeable eyewitnesses.
CA No. 141, or the Public Land Act (PLA). But, as Overt acts of possession may consist in introducing
held in Malabanan, there is no substantial valuable improvements like fencing the land,
difference between this provision and Sec. 14 (1) of constructing a residential house thereon, cultivating
the PRD. Both refer to agricultural lands already the land and planting fruit bearing trees, declaring
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the land for taxation purposes and paying realty Airlines. As she checked in, the manager
taxes, all of which are corroborative proof of downgraded her to economy on the ground that a
possession. Congressman had to be accommodated in the
business class. Lennie suffered the discomfort and
To identify the land, he must submit the tracing embarrassment of the downgrade. She sued the
cloth plan or a duly certified blueprint or whiteprint airlines for quasi-delict but Alta Airlines countered
copy thereof (Director of Lands v. Reyes, G.R. No. L- that, since her travel was governed by a contract
27594, November 28, 1975; Director of Lands v. CA between them, no quasi-delict could arise. Is the
and Iglesia ni Cristo, G.R. No. L-56613, March 14, airline correct?
1988). A. No, the breach of contract may in fact be
tortious as when it is tainted as in this case with
To show the classification of the land as A & D, the arbitrariness, gross bad faith, and malice.
application must be accompanied by (1) a CENRO B. No, denying Lennie the comfort and amenities of
or PENRO certification; and (2) a certified true copy the business class as provided in the ticket is a
of the original classification approved by the DENR tortious act.
Secretary (Republic v. Bantigue, G.R. No. 162322, C. Yes, since the facts show a breach of contract,
March 14, 2012). A presidential or legislative act not a quasi-delict.
may be considered. D. Yes, since quasi-delict presupposes the absence
of a pre-existing contractual relation between
VI. Non-registrable Properties the parties.

DAMAGES (2013)
VII. Dealings with Unregistered Lands A collision occurred at an intersection involving a
bicycle and a taxicab. Both the bicycle rider (a
Exclude: businessman then doing his morning exercise) and
1. History of land laws
the taxi driver claimed that the other was at fault.
2. Remedies sufficiently covered under
Remedial Law
Based on the police report the bicycle crossed the
3. Registration of judgments, orders and intersection first but the taxicab, crossing at a fast
partitions clip from the bicycle's left , could not brake in time
4. Assurance fund and hit the bicycle's rear wheel, toppling it and
5. Registration of patents throwing the bicycle rider into the sidewalk 5 meters
6. Administrative structure of the Register of away .
7. Consultas The bicycle rider suffered a fractured right knee,
sustained when he fell on his right side on the
TORTS AND DAMAGES concrete side walk. He was hospitalized and was
subsequently operated on, rendering him immobile
Book I--Torts for 3 weeks and requiring physical rehabilitation for
another 3 months. In his complaint for damages,
the rider prayed for the award of P 1,000,000 actual
I. Principles damages, P200,000 moral damages; P200,000
exemplary damages, P 100,000 nominal damages
ELEMENTS (2012) and P50,000 attorney's fees.
The following are the elements of quasi-delict,
except: Assuming the police report to be correct and as the
lawyer for the bicycle rider, what evidence
A. Act or omission (documentary and testimonial) and legal
B. FauIt/negligence arguments will you present in court to justify the
C. Damage/injury damages that your client' claims? (8%)
D. Pre-existing contract
BREACH OF CONTRACT (2011) I will base the claim of my client on quasi-delict
Lennie bought a business class ticket from Alta under Article 2176 of the Civil Code of the
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Philippines. oppressive, or malevolent manner. While the

amount of exemplary damages need not be
The requisites for a claim under quasi-delict to proved, the plaintiff must show that he is entitled to
prosper are as follows: moral or compensatory damages. In support of this,
1. Act or omission, there being fault or negligence; I will present the police report showing the
2. Damage or injury; and circumstances under which the accident took
3. Causal connection between the damage and place, taking into account the actions of the
the act or omission. parties. I will ask the officials who responded to the
accident to testify as to the conduct of the parties
The case clearly involves a quasi-delict where my at the time of the accident in order to determine
client, the bicycle rider, suffered injury as a result of whether defendant was guilty of gross negligence.
the negligence of the over-speeding taxi driver,
without fault on my client's part. Finally, attorney's fees may be recovered when
exemplary damages are awarded (Art. 2208, Civil
To prove actual damages, aside from the testimony Code).
of my client, I will present his hospital and medical
bills. Receipts of the fees paid on the rehabilitation DAMAGES (2009)
will also be presented. [The sentence in red should Rommels private car, while being driven by the
be replaced with the following sentence because regular family driver, Amado, hits a pedestrian
he is a businessman and not an employee. causing the latters death. Rommel is not in the car
Furthermore, I will present income tax returns, when the incident happened.
contracts and other documents to prove unrealized
profits as a result of this temporary injury.] I will also a. Is Rommel liable for damages to the heirs of the
call the attending physician to testify as to the deceased? Explain. (2%)
extent of the injuries suffered by my client, and to
corroborate t he contents of the medical SUGGESTED ANSWER:
documents. Yes, Rommel may be held liable for damages if he
fails to prove that he exercised the diligence of a
Based on Article 2202, in quasi-delicts, the good father of a family (Art. 2180, par. 5, NCC) in
defendant shall be liable for all damages which are selecting and supervising his family driver. The
the natural and probable consequences of the act owner is presumed liable unless he proves the
of omission complained of. It is not necessary that defense of diligence. If the driver was performing his
such damages have been foreseen or could have assigned task when the incident happened,
been foreseen by the defendant. Rommel shall be solidarily liable with the driver.

Unlike actual damages, no proof of pecuniary loss is In case the driver is convicted of reckless
necessary in order that moral, nominal, temperate, imprudence and cannot pay the civil liability,
liquidated or exemplary damages may be Rommel is subsidiarily liable for the damages
adjudicated. The assessment is left to the discretion awarded against the driver and the defense of
of the Court (Art. 2216, Civil Code). There must still diligence is not available.
be proof of pecuniary estimation, however. Moral
damages can be recovered by my client under b. Would your answer be the same if Rommel was
Articles 2219 and 2200. Moral damages may be in the car at the time of the accident. (2%)
recovered in case of a quasi-delict causing
physical injuries. Additionally, it must be proved that SUGGESTED ANSWER:
such damages were the proximate result of the act YES, my answer would be the same. Rommel, who
complained of. Medical certificates will be was in the car, shall be liable for damages if he
presented, along with the testimony from my client could have prevented misfortune by the use of
and other eye-witness accounts, in order to support diligence in supervising his driver but failed to
the award for moral damages. exercise it (Art. 2184, NCC). In such case, his liability
is solidary with his driver.
Exemplary damages may be granted if the
defendant acted in wanton, fraudulent, reckless, ALTERNATIVE ANSWER:
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Yes, my answer will be the same except that I such categorical finding that the hotel employee did not
a case the liability of the owner is not presumed. expose the complainant to ridicule, shame or
When the owner is inside the vehicle, he becomes embarrassment, hence, did not commit any abuse of
right. The present problem makes no statement of that
liable only when it is shown that he could have
finding. On the contrary, the problem states that it is a
prevented the misfortune by the use of due
mere allegation.]
diligence (Article 2184), NCC). For the owner to be
held liable, the burden of proving that he could
have prevented the misfortune rests on the shoulder II. Classification of Torts
of the victim.
DAMAGES (2012) Acme Cannery produced sardines in cans known
Roberto was in Nikko Hotel when he bumped into a as Sards. Mylene bought a can of Sards from a
friend who was then on her way to a wedding store, ate it, and suffered from poisoning caused by
reception being held in said hotel. Roberto alleged a noxious substance found in the sardines. Mylene
that he was then invited by his friend to join her at filed a case for damages against Acme. Which of
the wedding reception and carried the basket full the following defenses will hold?
of fruits which she was bringing to the affair. At the
reception, the wedding coordinator of the hotel A. The expiry date of the Sards was clearly
noticed him and asked him, allegedly in a loud printed on its can, still the store sold and Mylene
voice, to leave as he was not in the guest list. He bought it.
retorted that he had been invited to the affair by B. Mylene must have detected the noxious
his friend, who however denied doing so. Deeply substance in the sardines by smell, yet she still
embarrassed by the incident, Roberto then sued ate it.
the hotel for damages under Articles 19 and 21 of C. Acme had no transaction with Mylene; she
the Civil Code. Will Roberto's action prosper? bought the Sards from a store, not directly
Explain. (5%) from Acme.
D. Acme enjoys the presumption of safeness of its
SUGGESTED ANSWER: canning procedure and Mylene has not
NO, Robertos action will not prosper. From the facts overcome such presumption.
given in the problem, the wedding coordinator did
not abuse her right when she asked him to leave III. The Tortfeasor
the wedding reception because he was not in the
guest list. Hotel Nikko could not be held liable for LIABILITY AND DEFENSES (2010)
damages as its liability springs from the liability of its Define quasi tort. Who are the persons liable under
employee (Nikko Hotel Manila Garden v. Reyes, quasi torts and what are the defenses available to
G.R. No. 154259, February 28, 2005). them?


It depends. While the hotel has the right to exclude Quasi-tort is a legal concept upholding the doctrine
an uninvited guest from the wedding reception, that some legal duty exists that cannot be classified
that does not give the hotel the license to humiliate strictly as a personal duty (that is, resulting in a tort),
Roberto. If the wedding coordinator of the hotel nor as a contractual duty (thus resulting in a breach
acted wrongfully e.g. with abuse of right, unfairly, or of contract) but rather some other kind of duty
in a manner that exposed Roberto to unnecessary recognizable by the law. Tort or Quasi-Tort is an
ridicule or shame, his action will prosper. Otherwise, Anglo-American or Common Law concept, while
Robertos action will not prosper. Delict or Quasi-Delict is a Civil Law concept.
(Wikipedia Encyclopedia)
The hotel is liable for the wrongful acts of its
Quasi-Tort is considered as the equivalent of quasi-
[NOTE: The facts of the problem are almost similar to the delict. Hence, the rules of the latter pertaining to
facts of Nikko Hotel v. Roberto Reyes, G.R. No. 154259, persons who can be held liable and their defenses
February 28, 2005. In the said case, however, there is a would also apply.
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Those liable for quasi-delict include: specifications, or due to the defects in the ground.
1. The tortfeasor or the person causing the This liability may be enforced against the architect
damage to another through fault or negligence or engineer even by a third party who has no privity
(Art. 2176 NCC); and of contract with the architect or engineer under
2 .Persons vicariously liable under Article 2180 Article 2192 NCC.
The defenses available are: ALTERNATIVE ANSWER:
1. That the defendant was not negligent or that No.1. A, the owner. The lessee can sue only the
he exercised due diligence (Art. 2176 NCC). lessor for breach of contract under Article 1659 in
2. That although the defendant is negligent, his relation to Article 1654 NCC. The lessee cannot sue
negligence is not the proximate cause of the the architect or the engineer because there was no
injury (Art. 2179 NCC). privity of contract between them. When sued,
3. That the plaintiffs own negligence was the however, the lessor may file a third party claim
immediate and proximate cause of the injury (Art. against the architect or engineer.
2179 NCC).
4. That the person vicariously liable has observed ANOTHER ALTERNATIVE ANSWER:
all the diligence of a good father of a family to No. 2. B, the Engineer. Under Article 1723 (NCC), the
prevent damage (2180 NCC). engineer or architect who drew up the plans and
5. That the cause of action has prescribed after specifications for a building is liable for damages if
the lapse of 4 years (Art. 1146 NCC). within 15 years from the completion of the structure,
the same should collapse by reason of a defect in
The fact that the plaintiff had committed those plans and specifications, or due to the
contributory negligence is a partial defense (Art. defects in the ground. Under Article 2192 (NCC),
2179 NCC). however, if the damages should be the result of any
of the defect in the construction mentioned in
LIABILITY (2010) Article 1723 (NCC), the third person suffering
A had a 4-storey building which was constructed by damages may proceed only against the engineer
Engineer B. After five years, the building developed or architect or contractor within the period fixed
cracks and its stairway eventually gave way and therein. The damages suffered by the lessee in the
collapsed, resulting to injuries to some lessees. Who problem are clearly those resulting from defects in
should the lessees sue for damages? (1%) the construction plans or specifications.

A. A, the owner LIABILITY (2010)

B. B, the engineer On May 5, 1989, 16-year old Rozanno, who was
C. both A & B issued a student permit, drove to school a car, a gift
from his parents. On even date, as his class was
SUGGESTED ANSWER: scheduled to go on a field trip, his teacher
The lessee may proceed against A for breach of requested him to accommodate in his car, as he
contract, and against B for tort or statutory liability. did, four (4) of his classmates because the van
Under Article 1654 (2, of the) New Civil Code, the rented by the school was too crowded. On the way
lessor is obliged to make all the necessary repairs in to a museum which the students were scheduled to
order to keep the leased property suitable for the visit, Rozanno made a wrong maneuver, causing a
use to which it has been devoted. Consequently, collision with a jeepney. One of his classmates died.
under Article 1659 NCC, the proprietor of a building He and the three (3) others were badly injured.
or structure is responsible for the damages resulting
from its total or partial collapse, if it is due to the a. Who is liable for the death of Rozannos
lack of necessary repairs. classmate and the injuries suffered by Rozanno and
his 3 other classmates? Explain. (2%)
Under Article 1723 NCC, the engineer or architect
who drew up the plans and specifications for a SUGGESTED ANSWER:
building is liable for damages if within 15 years from At the time the incident occurred in May 1989,
the completion of the structure, the same should Rozanno was still a minor. Being a minor, Article 218
collapse by reason of defect in those plans and of the Family Code applies. Pursuant to Article 218,
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the school. Its administrators and teachers shall be panicked and ran but tripped on something and
liable for the acts of the minor Rozzano because of suffered a broken leg. Is anyone liable for Ns
the special parental authority and responsibility that injuries? Explain. (4%)
they exercised over him. This authority applies to all
authorized activities, whether inside or outside the SUGGESTED ANSWER:
premises of the school, entity or institution. The field No one is liable. The possessor of an animal or
trip, on which occasion Rozzano drove the car, was whoever may make use of the same is responsible
an authorized activity, and, thus, covered by the for the damage which it may cause, although it
provision. Furthermore, the parents of Rozzano are may escape or be lost. This responsibility shall cease
subsidiarily liable pursuant to Article 219 (FC), and only in case the damage should come from force
principally liable under Article 221 (FC), if they were majeur or from the fault of the person who has
negligent. suffered the damage (Art 2183, NCC)

b. How about the damage to the jeepney? Explain. LIABILITY (2012)

(2%) The liability of the school, its administrators and
teachers, or the individua1, entity or institution
SUGGESTED ANSWER: engaged in child care over the minor child for
With respect to the damages caused to the damage caused by the acts or omissions of the
jeepney, only Rozzano should be held liable unemancipated minor while under their supervision,
because his negligence or tortious act was the sole, instruction or custody shall be:
proximate, and immediate cause thereof.
A. Joint and subsidiary
c. Under the same facts, except the date of B. Principal and solidary
occurrence of the incident, this time in mid-1994, C. Principal and joint
what would be your answer? Explain. (2%) D. Subsidiary and solidary

SUGGESTED ANSWER: IV. Act of Omission and its Modalities

Since Rozzano was 16 years old in 1989, if the
incident happened sometime in the middle of 1994,
Rozzano would have been 21 years old at that
V. Proximate Cause
time. Hence, he was already of legal age. The law
reducing the age of majority to 18 years took effect VI. Legal Injury
in December 1989.
VII. Intentional Torts
Being of legal age, Articles 218, 219, and 221 of the
Family Code are no longer applicable. In such
VIII. Negligence
case, only Rozzano will be personally responsible for
all the consequences of his act unless the school or
his parents were themselves also negligent and IX. Special Liability in Particular
such negligence contributed to the happening of Activities
the incident. In that event, the school or his parents
are not liable under Article 218, 219 or 221 of the X. Strict Liability
Family Code, but will be liable under the general
provisions of the Civil Code on quasi-delict.
Book II--Damages
Primo owns a pet iguana which he keeps in a man- I. General Considerations
made pond enclosed by a fence situated in his
residential lot. A typhoon knocked down the fence DAMAGES (2011)
of the pond and the iguana crawled out of the When one exercises a right recognized by law,
gate of Primos residence. N, a neighbor who was knowing that he thereby causes an injustice to
passing by, started throwing stones at the iguana, another, the latter is entitled to recover damages.
drawing the iguana to move toward him. N This is known as the principle of
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for acts performed in the discharge of his duties.

A. res ipsa loquitur. The exceptions are when he acted with malice,
B. damnum absque injuria. bad faith, or gross negligence in the performance
C. vicarious liability. of his duty, or when his act is in violation of the
D. abuse of rights. Constitutionally guaranteed rights and liberties of a
person under Article 32 of the NCC. The public
DAMAGES (2009) officer is not automatically considered to have
Rodolfo, married to Sharon, had an illicit affair with violated the rights or liberties of a person simply
his secretary, Nanette, a 19-year old girl, and begot because the rule the public officer issued was
a baby girl, Rona. Nanette sued Rodolfo for declared invalid by the Court. The complainant
damages: actual, for hospital and other medical must still allege and prove the particular injury or
expenses in delivering the child by caesarean prejudice he has suffered from the violation of his
section; moral, claiming that Rodolfo promised to constitutional right by the issuance of the
marry her, representing that he was single when, in invalidated rule.
fact, he was not; and exemplary, to teach a lesson
to like-minded Lotharios. If you were the judge, The problem does not state any fact from which
would you award all the claims of Nanette? Explain. any malice, bad faith or gross negligence on the
(3%) part of Vinzons-Chato may be inferred, or the
particular injury or prejudice the complainant may
SUGGESTED ANSWER: have suffered as a result of the violation of his
If Rodolfo's marriage could not have been possibly constitutional rights. Hence, she cannot be held
known to Nanette or there is no gross negligence liable. The facts presented are similar to the facts of
on the part of Nanette, Rodolfo could be held the case of Vinsons-Chato v. Fortune, G.R. No.
liable for moral damages. 141309, December 23, 2008.

If there is gross negligence in a suit for quasi-delict, II. Actual and Compensatory Damages
exemplary damages could be awarded.
III. Moral Damages
DAMAGES (2012)
Liwayway Vinzons-Chato was then the
IV. Nominal Damages
Commissioner of Internal Revenue while Fortune
Tobacco Corporation is an entity engaged in the
manufacture of different brands of cigarettes, V. Temperate or Moderate Damages
among which are "Champion," "Hope," and "More" VI. Liquidated Damages
VII. Exemplary or Corrective Damages
Fortune 1filed a complaint against Vinzons-Chato to
recover damages for the alleged violation of its VIII. Damages in Case of Death
constitutional rights arising from Vinzons-
Chato'sissuance of Revenue Memorandum Circular IX. Graduation of Damages
No. 37-934 (which re-classified Fortune cigarettes as
locally manufactured with foreign brands and
thereby imposed higher taxes), which the Supreme
X. Miscellaneous Rules
Court later declared invalid.
Vinzons-Chato filed a Motion to Dismiss arguing that
she canndt be held liable for damages for acts she (2009)
performed while in the discharge of her duties as A person can dispose of his corpse through an act
BIR Commissioner. Is she correct? Explain. (5%) intervivos.
SUGGESTED ANSWER: False. A person cannot dispose of his corpse
YES. As a general rule, a public officer is not liable through an act inter vivos, i.e., an act to take effect
during his lifetime. Before his death there is no
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corpse to dispose. but he is allowed to do so A. Failure to disclose facts when there is a duty to
through an act mortis causa, i.e., an act to take reveal them, does not constitute fraud.
effect upon his death. B. Violence or .intimidation does not render a
contract annullable if employed not by a
(2009) contracting party but by a third person.
Before migrating to Canada in 1992, the spouses C. A threat to enforce one's claim through
Teodoro and Anita entrusted all their legal papers competent authority, if the claim is legal or just,
and documents to their nephew, Atty. Tan. Taking does not vitiate consent.
advantage of the situation, Atty. Tan forged a D. Absolute simulation of a contract always results
deed of sale, making it appear that he had bought in a void contract.
the couples property in Quezon City. In 2000, he
succeeded in obtaining a TCT over the property in (2012)
his name. Subsequently, Atty. Tan sold the same Which of the following statements is wrong?
property to Luis, who built an auto repair shop on
the property. In 2004, Luis registered the deed of A. Creditors are protected in cases of contracts
conveyance, and title over the property was intended to defraud them.
transferred in his name. B. Contracts take effect only between the
parties, their assign and heirs, except in case
In 2006, the spouses Teodoro and Anita came to where the rights and obligations arising from
the Philippines for a visit and discovered what had the contract are not transmissible by their
happened to their property. They immediately hire nature, or by stipulation or by provision of law.
you as lawyer. What action or actions will you C. If a contract should contain some stipulation in
institute in order to vindicate their rights? Explain favor of a third person, he may demand its
fully. (4%) fulfillment provided he communicated his
acceptance to the obligor before its
I will institute the following actions against Atty. Tan: D. In contracts creating real rights, third persons
(a) A civil action for damages for the fraudulent who come into possession of the object of the
transfer of the title in his name and to recover the contract are not bound thereby.
value of the property;
(b) An action against the National treasurer for the (2013)
compensation from the State Assurance Fund Which of the following actions or defenses are
which is set aside by law to pay those who lose their meritorious?
land or suffer damages as a consequence of the
operation of the Torrens system; A. An action for recovery of down payment paid
(c) A criminal action for forgery or falsification of under a rescinded oral sale of real property.
public document; B. A defense in an action for ejectment that the
(d) A complaint with the Supreme Court/Integrated lessor verbally promised to extend or renew the
Bar of the Philippines to disbar or suspend him or lease.
other disciplinary action for violation of the Code of C. An action for payment of sum of money filed
Professional Ethics. against one who orally promised to answer
anothers debt in case the latter defaults.
Any action against Luis will not prosper because he D. A defense in an action for damages that the
is an innocent purchaser for value. The Title to the debtor has sufficient, but unliquidated assets to
land he bought was already in the name of the satisfy the credit acquired when it becomes
person who sold the property to him and there is due.
nothing on the title which will make him suspect E. None of the above.
about the fraud committed by Atty. Tan.
An oral sale of real property is an unenforceable
(2012) contract under the Statute of Frauds. Since, in the
Which of the following expresses a correct principle problem, the vendee paid down payment, it takes
of law? Choose the best answer. it out of the ambit of the Statute of Frauds. The

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rescission here must be in the sense of resolution of

the reciprocal obligation arising from the contract
of sale. If the rescinded (resolved) by the vendee
on account of the vendors failure to deliver the
thing sold, the parties will go back to their status
prior to the contract. If the vendor refuses to return
the down payment, then the vendee can file an
action for recovery of the down payment.

If on the other hand, the vendor and the vendee

mutually agree to rescind, i.e., cancel the contract,
the vendee likewise can file an action for recovery
of the down payment on the basis of solution

E. None of the above.
A The recovery of the down payments should be
made in the same action for rescission. Otherwise it
would be a ground for dismissal under Rule 2, Sec. 4
of the Rules of Court.
B Lease of a real property is covered by the
Statute of Frauds. Furthermore, it also consists of
interest in real property. Hence, it must be in writing.
(Art. 1403, Civil Code)
C A contract of guaranty is a promise to answer
for the debt of another and hence, it is also
covered by the Statute of Frauds. It must be in
writing before it can be enforced in a court action.
(Art. 1403, Civil Code)
D The fact that a debtor has unliquidated assets
does not excuse him from paying his debt.
E If the technical meaning of rescission under
Article 1191 of the Civil Code will be adhered to,
then there is no absolutely correct answer. Hence,
letter E is also a possible answer.


1. This listing of covered topics is not intended and

should not be used by the law schools as a course
outline. This was drawn up for the limited purpose of
ensuring that Bar candidates are guided on the
coverage of the 2014 Bar Examinations.

2. All Supreme Court decisions - pertinent to a

given Bar subject and its listed topics, and
promulgated up to March 31, 2014 - are
examinable materials within the coverage of the
2014 Bar Examinations.

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