Professional Documents
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UP Bar Reviewer 2013 Civil Law PDF
UP Bar Reviewer 2013 Civil Law PDF
WHEN LAWS TAKE EFFECT ................................. 2 DOMICILE AND RESIDENCE OF PERSON ........... 13
FOR NATURAL PERSONS .......................................... 13
IGNORANCE OF THE LAW .................................. 2 FOR JURIDICAL PERSONS ......................................... 13
DOMICILE VS. RESIDENCE ......................................... 13
RETROACTIVITY OF LAWS .................................. 2 REQUISITES OF DOMICILE ......................................... 13
KINDS OF DOMICILE ................................................ 13
ACTS CONTRARY TO LAW ................................... 2
COOLING-OFF PERIOD
Human Relations .................. 8 AND RECONCILIATION EFFORTS...................... 26
ABUSE OF RIGHT ................................................ 8
CONFESSION OF JUDGMENT ............................ 26
ACTS CONTRARY TO LAW ................................... 9
EFFECTS OF FILING PETITION .......................... 26
ACTS CONTRA BONUS MORES ........................... 9
EFFECTS OF PENDENCY ................................... 26
PRINCIPLE OF UNJUST ENRICHMENT................. 9
EFFECTS OF LEGAL SEPARATION..................... 26
THE FAMILY AS AN INSTITUTION ..................... 40
RECONCILIATION ............................................. 27 ASPECTS OF FAMILY RELATIONS ............................... 40
HOW DONE ........................................................... 27 FAMILY RELATIONS INCLUDE ................................... 40
EFFECTS OF RECONCILIATION ................................... 27 EXCEPTIONS TO THE GENERAL RULE – CANNOT BE SUBJECT
OF COMPROMISE ................................................... 40
ANNEX TO VOID AND VOIDABLE
MARRIAGES AND LEGAL SEPARATION ............ 27 THE FAMILY HOME .......................................... 40
GROUNDS ............................................................ 27 CONSTITUTED BY .................................................. 40
EFFECTS OF FILING / PENDING DECREE ....................... 27 INCLUDES ............................................................ 41
EFFECTS OF AFFIDAVIT OF REAPPEARANCE, JUDICIAL GUIDELINES .......................................................... 41
DECLARATION OF NULLITY, ANNULMENT AND LEGAL BENEFICIARIES OF THE FAMILY HOME ......................... 41
SEPARATION ........................................................ 28 REQUISITES TO BE A BENEFICIARY .............................. 41
REQUIREMENTS FOR THE SALE, ALIENATION, DONATION,
ASSIGNMENT, OR ENCUMBRANCE OF THE FAMILY HOME . 41
Rights and Obligations REQUISITES FOR CREDITOR TO AVAIL OF THE RIGHT UNDER
The Family........................... 40
RA 8043 – THE LAW ON INTER-COUNTRY
ADOPTION ........................................................ 49 EFFECT OF PARENTAL AUTHORITY UPON THE
INTER-COUNTRY ADOPTION ..................................... 49 PERSONS OF THE CHILDREN............................ 54
WHO CAN ADOPT ................................................... 49 RIGHTS OF PARENTS UPON
WHO CAN BE ADOPTED ........................................... 50 THE PERSON OF THE CHILDREN ................................ 54
DUTIES OF PARENTS UPON
SUCCESSION Legal or
Intestate Succession ........ 224
General Provisions ............ 206 GENERAL PROVISIONS................................... 224
INSTANCES WHEN LEGAL OR INTESTATE SUCCESSION
DEFINITION & TRANSMISSION ....................... 206 OPERATES ......................................................... 224
THE INTESTATE OR LEGAL HEIRS ............................. 224
SUCCESSION OCCURS AT THE MOMENT OF FUNDAMENTAL PRINCIPLES IN
DEATH ........................................................... 206 INTESTATE SUCCESSION........................................ 224
OBLIGATION TO PREFER INTEREST OF LIABILITY FOR EXPENSES AND DAMAGES ..... 275
PRINCIPAL ...................................................... 270 NECESSARY FUNDS .............................................. 275
BASIS OF THE RULE .............................................. 270
WHEN PRINCIPAL NOT LIABLE FOR EXPENSES ............ 275
APPLICATION ...................................................... 270
DAMAGES .......................................................... 275
RIGHT OF RETENTION BY AGENT ............................. 275
OBLIGATION TO ACCOUNT AND TO DELIVER MULTIPLE PRINCIPALS .......................................... 275
THINGS RECEIVED ......................................... 270 LIABILITY FOR QUASI-DELICT BY AGENT .................... 275
WHAT TO DELIVER................................................. 271
LIABILITY FOR CONVERSION .................................... 271
EXEMPTING STIPULATION ....................................... 271
WHEN OBLIGATION NOT APPLICABLE......................... 271
Extinguishment
of agency ............................276
RESPONSIBILITY FOR ACTS OF SUBSTITUTE ... 271 MODES OF EXTINGUISHING AGENCY, IN
SUB-AGENCY ....................................................... 271 GENERAL.........................................................276
POWER TO APPOINT .............................................. 271
RELATIONS AMONG THE PARTIES ............................. 271
REVOCATION BY PRINCIPAL ...........................276
EFFECTS OF SUBSTITUTION ..................................... 271
MULTIPLE PRINCIPALS ...........................................276
MANNER OF REVOCATION ......................................276
RESPONSIBILITY OF TWO OR MORE AGENTS .. 271 EFFECT OF REVOCATION
IN RELATION TO THIRD PARTIES...............................276
OBLIGATION FOR SUMS APPLIED TO HIS OWN
USE ................................................................. 272 WITHDRAWAL BY AGENT ................................ 277
LIABILITY FOR DAMAGES ........................................ 277
OBLIGATIONS TO THIRD PERSONS ................ 272 OBLIGATION TO CONTINUE AGENCY .......................... 277
LIABILITY OF AGENT FOR OBLIGATIONS CONTRACTED .. 272
VOID CONTRACTS ................................................ 272
DEATH, CIVIL INTERDICTION, INSANITY OR
PRESENTATION OF POWER OF ATTORNEY.................. 272
INSOLVENCY ................................................... 277
RATIFICATION BY PRINCIPAL .................................. 272
DEATH OF PRINCIPAL ............................................ 277
IGNORANCE OF AGENT .......................................... 272
DEATH OF AGENT ................................................. 277
ONLY MOVABLE THINGS MAY BE THE OBJECT OF PROVISIONS APPLICABLE ONLY TO PLEDGE . 290
A DEPOSIT ...................................................... 282
KINDS ............................................................ 290
OBLIGATIONS OF DEPOSITOR ....................... 282
ESSENTIAL REQUIREMENTS ......................... 290
EXTINGUISHMENT OF DEPOSIT ..................... 282 ESSENTIAL REQUISITES COMMON TO PLEDGE AND
MORTGAGE ....................................................... 290
EFFECT OF DEATH OF DEPOSITOR OR
DEPOSITARY .................................................. 282 OBLIGATION OF PLEDGEE ............................. 290
VIOLATION OF CONSTITUTIONAL RIGHTS ...... 356 DEGREE OF CERTAINTY REQUIRED AS TO: FACT,
VIOLATION OF CIVIL LIBERTIES ................................ 356 CAUSE AND AMOUNT OF DAMAGES .............. 363
VIOLATIONS OF RIGHTS COMMITTED BY PUBLIC OFFICERS
....................................................................... 356 NOT SPECULATIVE ......................................... 363
PROVINCES, CITIES, AND MUNICIPALITIES ................. 357
OWNERS OF MOTOR VEHICLES ................................ 357 COMPONENTS ................................................ 363
PROPRIETOR OF BUILDING OR STRUCTURE ................ 358
HEAD OF FAMILY.................................................. 359 VALUE OF LOSS; UNREALIZED PROFIT .......... 363
Exemplary Or Corrective
Damages ............................. 371
WHEN RECOVERABLE..................................... 372
IN CRIMINAL OFFENSES ........................................ 372
IN QUASI-DELICTS................................................ 372
IN CONTRACTS AND QUASI-CONTRACTS.................... 372
REQUISITES ........................................................ 372
DAMAGES IN CASE OF DEATH RE. CRIMES AND QUASI-
DELICTS............................................................. 373
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(e) Laws on Succession itself, governing law is the law of the state
(f) Capacity to succeed which has real interest
Filipino Testator
RULE ON PROPERTY Foreign (1) Law of the place where he
Controlling Law — Lex Situs/Lex Rei Sitae Country may be (lex loci
celebrationis) [Art 815]
General Rule: Real and Personal Property is subject (2) Philippine law [see III
to the law of the country where it is situated (Art. 16) Tolentino 117]
Alien Testator
recognized [Llantino v Co Liong Chong]
Foreign (1) Law of the place in which
(2) The formalities of a contract to convey property Country he resides (lex domicilii)
are governed by Lex Situs (Arts. 816, (2) Law of his country (lex
17) nationali)
Exceptions to Lex Situs (3) Philippine law
(1) Transactions Not Affecting Transfer of Title or (4) Law of the place where
Ownership of Land: Lex Intentionis or Lex they were executed (lex
Voluntatis loci celebrationis)
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Revocation
Testator Applicable Law Art. 17. The forms and solemnities of contracts, wills,
and other public instruments shall be governed by
the laws of the country in which they are executed.
Philippine
Will is revoked in
the Philippines
Domiciliary
When the acts referred to are executed before the
Philippine Law diplomatic or consular officials of the Republic of the
Philippines in a foreign country, the solemnities
Non-domiciliary
established by Philippine laws shall be observed in
[Art. 829]
their execution.
(1) Philippine Law Prohibitive laws concerning persons, their acts or
Philippine (2) Law of the place of property, and those which have, for their object,
Will is revoked in a
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(viii) Marriages between parties where one, with (2) Consular Marriages
the intention to marry the other, killed that Marriages between Filipino citizens abroad may
other person's spouse, or his or her own be solemnized by a consul-general, consul or vice
spouse. consul of the Republic of the Philippines [Art. 10,
FC].
Note: These exceptions put into issue the capacity of
the parties to enter into the marriage and therefore Effects of Marriage
relate to the substantive requirement for marriage (1) Personal relations between the spouses
and is governed by lex nationalii. (a) Governed by the national law of the parties
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Persons and Personality General rule: Incapacitated persons are not exempt
from certain obligations arising from his acts or
property relations.
CAPACITY TO ACT
CIVIL PERSONALITY Minority
Art. 37. Juridical capacity, which is the fitness to be RA 6809 (1989): An act lowering the age of majority
the subject of legal relations, is inherent in every from twenty-one to eighteen years.
natural person and is lost only through death.
Capacity to act, which is the power to do acts with Effects on Contracts
legal effect, is acquired and may be lost. (1) They cannot give consent to a contract [Art. 1327
(1)]
(2) A contract where one of the parties is a minor is
Juridical Capacity Capacity to Act voidable [Art. 1390(1)]
(3) A contract is unenforceable when both of the
Fitness of man to be the Power to do acts with parties are minors (incapable of giving consent)
subject of legal relations legal effect [Art. 1403(3)]
Passive Active (4) Minority cannot be asserted by the other party in
Aptitude for the Holding Aptitude for the Exercise an action for annulment [Art. 1397]
and Enjoyment of rights of rights (5) Not obliged to make restitution except insofar as
he has been benefited [Art. 1399]
Inherent in every natural Must be acquired
(6) Minor has no right to demand the thing/price
person
voluntarily returned by him [Art. 1426]
Lost upon death Lost through death and
(7) Minor has no right to recover voluntarily paid sum
other causes
or delivered thing, if consumed in good faith [Art.
Can exist without Must exist with juridical 1427]
capacity to act capacity (8) Must pay reasonable amount for necessaries
Cannot be limited or May be restricted or delivered to him [Art. 1489]
restricted limited
Note: Juridical capacity can exist even without Mercado v. Espiritu, (1918):
capacity to act; the existence of the latter implies Estoppel works against minors who misrepresent their
that of the former. ages in a contract and are compelled to comply with
its terms. (active misrepresentation done by minors).
RESTRICTIONS ON CAPACITY TO ACT
Bambalan v. Maramba, (1928):
Art. 38. Minority, insanity or imbecility, the state of When a minor made no active misrepresentation as to
being a deaf-mute, prodigality and civil interdiction his minority and such minority is known to the other
are mere restrictions on capacity to act, and do not party, the contract is voidable (Art. 1403) as to the
exempt the incapacitated person from certain minor.
obligations, as when the latter arise from his acts or
from property relations, such as easements. Braganza v. Villa Abrille, (1959):
Minors are obliged to make restitution insofar as they
Art. 39. The following circumstances, among others, have been benefited (Art. 1399).
modify or limit capacity to act: age, insanity,
imbecility, the state of being a deaf-mute, penalty, Effects on Marriage
prodigality, family relations, alienage, absence, (1) May not yet contract marriage [Art. 5, FC].
insolvency and trusteeship. The consequences of (2) Marriages, where one of the parties is below 18,
these circumstances are governed in this Code, other even with the consent of parents/guardians, are
codes, the Rules of Court, and in special laws. VOID [Art. 35, FC]
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Prodigality Absence
Martinez v. Martinez, (1902): Art. 390. After an absence of seven years, it being
A spendthrift or a prodigal is “a person, who, by unknown whether or not the absentee still lives, he
excessive drinking, gambling, idleness or debauchery shall be presumed dead for all purposes, except for
of any kind shall so spend, waste or lessen his estate as those of succession.
to expose himself or his family to want or suffering.”
The acts of prodigality must show a morbid state of The absentee shall not be presumed dead for the
mind. purpose of opening his succession till after an absence
of ten years. If he disappeared after the age of
Note: It is not the circumstance of prodigality, but the seventy-five years, an absence of five years shall be
fact of being under guardianship that restricts sufficient in order that his succession may be
capacity to act. opened. (n)
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Art. 391. The following shall be presumed dead for all Period of Conception = the first 120 days of the 300
purposes, including the division of the estate among days preceding the birth of the child.
the heirs:
A conceived child can acquire rights while still in the
1. A person on board a vessel lost during a sea voyage, mother’s womb. It can inherit by will or by intestacy.
or an aeroplane which is missing, who has not been
heard of for four years since the loss of the vessel or Geluz v CA, (1961):
aeroplane; An aborted fetus had conditional personality but never
acquired legal rights/civil personality because it was
2. A person in the armed forces who has taken part in not alive at the time of delivery from the mother’s
war, and has been missing for four years; womb. No damages can be claimed in behalf of the
unborn child.
3. A person who has been in danger of death under
other circumstances and his existence has not been Complete respiration = test/sign of independent life
known for four years.
Death
Article 124, FC: Art. 42. Civil personality is extinguished by death.
(1) Administration and enjoyment of the CPG shall The effect of death upon the rights and obligations
belong to both spouses jointly. of the deceased is determined by law, by contract
(2) In case of disagreement, husband’s decision shall and by will
prevail, subject to recourse to the court by the
wife for proper remedy (within 5 years from date
Criminal liability ends with death BUT civil liability
of contract implementing such decision)
may be charged against the estate [People v. Tirol,
(3) If one spouse is incapacitated/unable to
(1981)].
administer, sole powers of administration may be
assumed by the other spouse.
(4) General Rule: This power does not include Art. 43. If there is a doubt, as between two or more
disposition/encumbrance. persons who are called to succeed each other, as to
which of them died first, whoever alleges the death
Exception: Judicial authority or written consent of of one prior to the other, shall prove the same; in the
other spouse. absence of proof, it is presumed that they died at the
same time and there shall be no transmission of
Birth rights from one to the other.
General Rule: Birth determines personality [Art. 40].
Death extinguishes civil personality [Art. 42]. Note: Article 43 provides a statutory presumption
when there is doubt on the order of death between
Exception: A “conceived child shall be considered persons who are called to succeed each other (only).
born for all purposes that are FAVORABLE to it,
provided it be born later” [Art. 40, 2nd clause] with The statutory presumption of Article 43 was not
the following circumstances: applied due to the presence of a credible eyewitness
as to who died first [Joaquin v. Navarro, (1948)]
Intra-Uterine Life When Considered Born Compare Art. 43 with Rule 131, Sec. 3 (jj), presumption
of Survivorship.
7 months or more Alive upon delivery
Less than 7 months Alive only after
completion of 24 hours Art. 43 Rule 131, Sec. 3 (jj)
from delivery
Only use the presumptions when there are no facts
Birth = complete removal of the fetus from the to get inferences from
mother’s womb; before birth, a fetus is merely part of Only use for succession Cannot be used for
the mother’s internal organs. purposes succession purposes
In any circumstance Only during death in
Personality of Conceived Child calamities, wreck, battle
(1) Limited = only for purposes FAVORABLE to it. or conflagration
(2) Conditional = it depends upon the child being
born alive later.
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Must be male and female Note: In a marriage in articulo mortis, when one or
Jones v Hallahan, (1973): Application for marriage both parties are unable to sign the marriage
license was denied since marriage is defined by law as certificate, it shall be sufficient for one of the
a contract entered into between a man and a woman. witnesses to write the name of said party, which shall
be attested by the solemnizing officer. (Art. 6, par. 2)
Goodridge v. Dept. of Public Health, (2003): Same-sex
couples should not be denied the same benefits as Places where marriage SHALL be publicly solemnized:
heterosexual couples; the right to marry includes the (CCO)
right to choose who to marry. (1) Chambers of the judge or in open court
(2) Church, chapel, or temple
Silverio v Republic, (2007): Changing of gender in one’s (3) Office of the consul-general, consul, or vice-
birth certificate was denied; otherwise, it would result consul [Art. 8]
in confusion and would allow marriage between
persons of the same sex which is in defiance of the law, Exceptions:
as marriage is a union between a man and a woman. (1) Marriages performed in articulo mortis or in
remote places. [Art. 29]
Note: The best source for citing the requirement (of (2) Where both parties request in writing that
male/female) is still statutory, as provided explicitly marriage be solemnized at a place designated by
in the Family Code. them.
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(2) Absence & Irregularity of Authority of a marry each other. [Art. 34, Ninal vs. Badayog
solemnizing officer (2000)]
Lack of valid notification of both parties desiring a Requisites for the 5-year cohabitation to be valid for the
ceremony in a remote place was held to be only a exemption from acquiring a marriage license
mere IRREGULARITY [Navarro vs. Domagtoy (1996)] (1) The man and woman must have been living
together as husband and wife for at least five
Respondent judge was faulted for solemnizing a years before the marriage;
marriage outside his territorial jurisdiction. Also, (2) The parties must have no legal impediment to
presentation of the marriage license subsequent to marry each other;
the solemnization of marriage will not cure the (3) The fact of absence of legal impediment between
defect. [Arañes v. Occiano (2002)] the parties must be present at the time of
marriage;
License required (4) The parties must execute an affidavit stating that
General Rule: License required they have lived together for at least five years
[and are without legal impediment to marry each
Article 9 - Issued by local registrar of city or other]; and
municipality where either contracting party (5) The solemnizing officer must execute a sworn
habitually resides statement that he had ascertained the
qualifications of the parties and that he had
Article 11 - Each contracting party should file found no legal impediment to their marriage.
separately. [Borja-Manzano vs. Judge Sanchez (2001)]
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(2) The presumption that a man and a woman (4) Bigamous or polygamous marriages not falling
deporting themselves as husband and wife have under Article 41 (Art. 41: subsequent marriage by
entered into a lawful contract of marriage is present spouse who obtained a declaration of
satisfactory if uncontradicted. [Sec. 3 (aa), Rule presumptive death for absent spouse prior to the
131, ROC] subsequent marriage)
(3) In marriages of exceptional character, the (5) There is a mistake as to the identity of the other
existence of the marriage is presumed, even in contracting party
the TOTAL ABSENCE of a marriage license. [Vda. (6) Subsequent marriages that are void under Article
De Jacob v CA (1999)] 53 (Non-compliance with Art. 52)
(4) If a marriage certificate is missing, and all means
HAVE NOT YET BEEN EXHAUSTED to find it, Psychological incapacity
then the marriage is presumed to exist [Sevilla v Contracted by any party who, at the time of the
Cardenas (2006)] celebration, was psychologically incapacitated to
comply with the essential marital obligations of
Absence of a marriage certificate is not proof of marriage, even if such incapacity becomes manifest
absence of marriage. To prove the fact of marriage, only after its solemnization [Art. 36]
the following would constitute competent evidence:
(1) the testimony of witnesses to matrimony; (2) the Republic v. Molina, (1997):
couple’s public cohabitation; and (3) birth and (1) The burden of proof to show the nullity of the
baptismal certificates of children born during the marriage belongs to the plaintiff.
union. [Trinidad v CA (1998)] (2) The root cause of the psychological incapacity must
be: (a) medically or clinically identified, (b) alleged in
VOID MARRIAGES the complaint, (c) sufficiently proven by the experts,
Type of Void Marriages (d) clearly explained in the decision.
(1) Absence of any formal/essential requisites (3) The incapacity must be proven to be existing at
(2) Psychologically Incapacitated spouse “the time of the celebration” of the marriage.
(3) Incestuous Marriages (4) Such incapacity must also be shown to be
(4) Marriages contrary to public policy medically or clinically permanent or incurable.
(5) Void subsequent marriages (5) Such illness must be grave enough to bring about
the disability of the party to assume the essential
Absence of Requisites obligations of marriage.
Art. 4(1): The absence of any essential or formal (6) The essential marital obligations must be those
requisites shall render the marriage void ab initio, embraced by Articles 68 up to 71 of the Family Code
except as stated in Article 35 (a). as regards the husband and wife as well as Articles
220, 221, and 225 of the same Code in regard to
Art. 5: Any male or female of the age of eighteen years parents and their children.
or upwards not under any of the impediments (7) Interpretations given by the National Appellate
mentioned in Articles 37 and 38, may contract Matrimonial Tribunal of the Catholic Church in the
marriage. Philippines, while not controlling/decisive, should
be given great respect by our courts.
(8) The trial court must order the prosecuting attorney
Void from the Beginning [Art. 35]. –
or fiscal and the Solicitor General to appear as
(1) Marriage where any party is below eighteen years
counsel for the state. No decision shall be handed
of age even with the consent of parents or
down unless the Solicitor General issues a
guardians
certification.
(2) Marriage solemnized by any person not legally
authorized to perform marriages unless such
Santos v. Bedia-Santos, (1995):
marriages were contracted with either or both
Laid down 3 characteristics for determining
parties believing in good faith that the
psychological incapacity: gravity, antecedent, and
solemnizing officer had the legal authority to do
incurability.
so.
Note: One’s belief in good faith that the
Tsoi v. CA, (1997):
solemnizing officer has the required authority is a
Refusal of husband to have sex was interpreted to be
mistake of fact, and not of law.
PI. “A man who can but won’t is PI”
(3) Marriage solemnized without a valid marriage
license, except in marriages under exceptional
circumstances
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Republic vs. San Jose (2007): Article 44 (Bad Faith of both spouses)
There is no requirement that the respondent be Both spouses entering a subsequent marriage after
medically examined first. presumptive death, who acted in bad faith
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Extraordinary circumstances [Art. 391, CC]: 4 years under normal Absent for at least 7
(a) ON BOARD VESSEL lost at sea voyage, airplane, circumstances; years;
(b) ARMED FORCES in war, or
(c) DANGER OF DEATH under other circumstances, 2 years under 4 years under
existence not known extraordinary extraordinary
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Family Code Civil Code Family Code makes an exception for the purpose of
remarriage by limiting such requirement to 4 years.
circumstances circumstances
Article 43 and 44 (Effects of Termination of Bigamous
As to remarriage Marriage under Art. 42)
In order to remarry, Declaration of Art. 43:
summary proceeding is presumptive death is not (1) Children of subsequent marriage – conceived prior
necessary necessary to its termination considered legitimate; custody
As to who can institute the action and support decided by court in a proper
proceeding
Can be instituted by the The spouses themselves (2) Property Regime – dissolved and liquidated (party
present spouse, any in bad faith shall forfeit his/her share in favor of
interested party, and the the common children or if there are none, children
subsequent spouse of the guilty spouse by a previous marriage, and in
case there are none, to the innocent spouse)
As to effect on subsequent marriage (3) Donation propter nuptias – remains valid, (but if
the donee contracted marriage in bad faith,
Subsequent marriage is Upon reappearance, donations will be revoked)
automatically terminated judicial proceeding is (4) Insurance benefits – innocent spouse may revoke
by the recording of an necessary to declare designation of guilty party as beneficiary, even if
affidavit of reappearance marriage null and void such designation is stipulated as irrevocable
of the absent spouse (5) Succession Rights – Party in bad faith disqualified
As to ground to inherit from innocent spouse, whether testate or
intestate
Well founded belief that Generally believed to be
the absent spouse is dead dead Article 44:
Donations: If both parties of subsequent marriage
acted in bad faith, any donations and testamentary
Connected Provisions
dispositions made by one party to the other by
Art. 390, Civil Code. After an absence of 7 years, it reason of marriage will be revoked
being unknown whether or not the absentee still lives,
he shall be presumed dead for all purposes, except for ACTION OR DEFENSE OF NULLITY
those of succession. Prescription
Art. 39. The action or defense for the declaration of
The absentee shall not be presumed dead for the
absolute nullity of a marriage shall not prescribe. (as
purpose of opening his succession till after an absence
amended by RA 8533)
of 10 years. If he disappeared after the age of 75 years,
an absence of 5 years shall be sufficient in order that
his succession may be opened. It must be noted that under the new Supreme Court
Rule on Declaration of Absolute Nullity of Void
Marriages and Annulment of Voidable Marriages
Art. 391, Civil Code. The following shall be presumed A.M. No. 02-11-10-SC, effective March 15, 2003,
dead for all purposes, including the division of the nullity of the marriage can still be collaterally
estate among the heirs: (SAAD) attacked.
(1) A person on board a vessel lost during a sea
voyage, or an aeroplane which is missing, who has Who may file the petition for nullity?
not been heard of for four years since the loss of the As to the parties allowed to file the action: Only an
vessel or aeroplane; aggrieved or injured spouse may file a petition for
(2) A person in the armed forces who has taken part in annulment of voidable marriages or declaration of
war, and has been missing for four years; absolute nullity of void marriages. Such petition
(3) A person who has been in danger of death under cannot be filed by compulsory or intestate heirs of
other circumstances and his existence has not been the spouses or by the State. The Committee is of the
known for four years. belief that they do not have a legal right to file the
petition. Compulsory or intestate heirs have only
Notes: inchoate rights prior to the death of their
Although 7 years is required for the presumption of predecessor, and, hence, can only question the validity
death of an absentee in the Civil Code, Art. 41 of the of the marriage of the spouses upon the death of a
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spouse in a proceeding for the settlement of the estate (b) Through concealment by the wife of the fact
of the deceased spouse filed in the regular courts. that at the time of the marriage she was
(Enrico v. Heirs of Sps. Medinaceli (2007)), also pregnant by another man;
reiterated in (Carlos vs. Sandoval (2008)) (c) Through concealment of a sexually-
transmitted disease, regardless of its nature,
How to attack a void marriage? existing at the time of marriage;
General Rule: Void Marriages may be attacked (d) Through concealment of drug addiction,
collaterally or directly. habitual alcoholism or
homosexuality/lesbianism. (Art.46)
Exception: A person in a void marriage must first file (4) The consent of either party was obtained through
for a declaration of nullity in order to subsequently force, intimidation, or undue influence.
marry (5) Either party is physically incapable of
consummating the marriage (impotence; this is
ANNULLABLE MARRIAGE different from sterility, which is the inability to
(Note: Although the Supreme Court in its syllabus produce offspring).
seems to make a distinction between annullable and (6) Either party has a serious and incurable sexually-
voidable marriages by the fact that they made two transmissible disease, even if not concealed.*
separate categories for the two, Tolentino makes no
mention of any such difference.) Action to Annul: Action in rem, concerns status of
parties; res is relation between parties or marriage
Art. 14: In case either or both of the contracting tie; jurisdiction depends on nationality or domicile
parties, not having been emancipated by a previous not the place of celebration.
marriage, are between the ages of eighteen and
twenty-one, In addition to the requirements of the Grounds for Annulment explained:
preceding articles: (1) Lack of parental consent
(a) Exhibit to the local civil registrar the consent to (a) 18 ≤ x < 21 without parental consent
their marriage of their father, mother, surviving (b) Ratified by party 18 or above but below 21
parent or guardian, or persons having legal charge upon free cohabitation upon reaching 21.
of them, in the order mentioned (c) TOLENTINO: parents whose consents were
(b) Manifested in writing by the interested party, who wanting may ratify before 21; this right can be
personally appears before the proper local civil waived; however, the Code Commission
registrar, or believes that no such ratification can be made
(c) In the form of an affidavit made in the presence of by the parent.
two witnesses and attested before any official
authorized by law to administer oaths (2) Insanity
(d) The personal manifestation shall be recorded in (a) Mental incapacity or insanity is a vice of
both applications for marriage license, and the consent; insanity (1) of varying degrees, (2)
affidavit, if one is executed instead, shall be curable being an illness, capable of
attached to said applications. ratification or convalidation, (3) has lucid
intervals, (4) ground only for annulment in
Grounds for Annulment many countries
Article 4 states that “xxx A defect in any of the (b) Can be ratified by cohabitation after insanity is
essential requisites shall render the marriage cured or during a lucid interval
voidable as provided in Article 45.” (c) Mere mental weakness is not a ground for
annulment, but if found grave enough may
Article 45. Marriage may be annulled on the amount to psychological incapacity.
following grounds existing at time of marriage: (d) Intoxication, somnambulism where one had
(PIFFIS) no mental capacity to give consent is
(1) One of the parties is 18 or above but below 21 equivalent to insanity
years old, and there is no parental consent. (e) Must EXIST AT THE TIME of the celebration of
(2) Either party was of unsound mind (insanity). the marriage.
(3) The consent of either party was obtained through (f) Law presumes SANITY, burden of proof on
fraud (different from mistake in identity): party alleging insanity
(a) Through non-disclosure of a previous
conviction of a crime involving moral (3) Fraud
turpitude; (a) Only those enumerated in Art. 46:
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(1) Non-disclosure of previous CONVICTION when wife had been at least 6 months pregnant prior
by final judgment of a crime involving to marriage.
MORAL TURPITUDE
(2) Concealment by wife at the time of Aquino v. Delizo, (1960):
marriage, that she was pregnant by The Supreme Court granted annulment because the
another man wife concealed the fact that she was 4 months
(3) Concealment of STD regardless of nature pregnant during the time of the marriage. It argued
existing at time of marriage that since Delizo was “naturally plump,” Aquino could
(4) Concealment of drug addiction, habitual hardly be expected to know, by mere looking, whether
alcoholism, homosexuality, lesbianism or not she was pregnant at the time of the marriage.
existing at time of marriage
(b) NO other misrepresentation or deceit of Almelor v. RTC, (2008):
CHARACTER, HEALTH, RANK, FORTUNE OR It is the concealment of homosexuality, and not
CHASTITY shall constitute FRAUD. homosexuality per se, that vitiates the consent of the
(c) Conviction of Crime: requisites are innocent party. Such concealment presupposes bad
(1) Moral turpitude faith and intent to defraud the other party in giving
(2) Conviction consent to the marriage.
(d) Concealment of Pregnancy
(1) Fraud against very essence of marriage; Corpuz v. Ochoterena, (2004):
importance of procreation of children; an In a legal separation or annulment case, the
assault to the integrity of the union by prosecuting attorney must first rule out collusion as a
introducing ALIEN BLOOD condition sine qua non for further proceedings. A
(2) If husband knew of pregnancy, the certification by the prosecutor that he was present
marriage cannot be annulled on the during the hearing and even cross-examined the
ground of concealment plaintiff does not suffice to comply with the mandatory
(e) Marriage cannot be annulled on the ground requirement.
that wife concealed the fact that she had been
lewd & corrupt and had illegitimate child. (4) Force, intimidation, undue influence
(Shrady v. Logan (1896)) (a) FORCE must be one as to prevent party from
(f) Maybe ratified upon free cohabitation after acting as a free agent; will destroyed by
knowledge of fraud. fear/compulsion
(b) INTIMIDATION must be one as to compel the
party by reasonable/well-grounded fear/evil
Art. 45 STD Art. 46 STD imminent upon person/properties
(c) DEGREE OF INTIMIDATION: age, sex,
Ground for annulment The STD is a type of condition of person borne in mind
fraud which is a ground (d) Threat or intimidation as not to act as FREE
for annulment AGENT; threatened of armed demonstrations
Does not have to be Must be concealed by brother is ANNULLABLE (Tiongco v Matig-
concealed a)
Must be serious and Need not be serious nor (e) Man rapes a girl, marries her to conceal the
incurable incurable rape & has no intention to live with the girl;
The STD itself is the It is the concealment marriage is annullable (People v Santiago
ground for annulment that gives rise to the (1927))
annulment (f) Committee added “undue influence”, maybe
compelled to enter out of REVERENTIAL
Effect of Cure to Fraud in Art. 46: FEAR e.g., fear of causing distress to parents,
Recovery or rehabilitation from STD, drug addiction, grandparents, etc.
and habitual alcoholism will NOT BAR ACTION for (g) May be ratified upon cohabitation after force,
annulment; The defect is not the disease, but the intimidation, or undue influence has ceased or
FRAUD which VITIATED CONSENT. disappeared.
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operation, NOT ANNULLABLE (Sarao v (j) RELATIVE IMPOTENCY: may now be invoked
Guevarra(1940)) because there are cases where one is
(b) Should be unknown to the other party impotent with respect to his spouse but not
(c) Physical condition: sexual intercourse with a with other men or women.
person of the opposite sex is impossible, not (k) EXAMPLE: penile erection to other women
mere sterility possible; unusually large penis cannot fit with
(d) When both spouses are impotent, marriage abnormally small vagina
cannot be annulled because neither spouse is
aggrieved (6) Sexually-transmissible disease serious and
(e) POTENCY PRESUMED; party who alleges incurable
impotency has burden of proof (Jimenez v (a) Should exist at the time of the marriage
Canizares (1960)) (b) Should be found serious
(f) Although potency is presumed, there is a (c) Should appear to be incurable
doctrine in England called TRIENNIAL (d) Should be unknown to other party
COHABITATION that if wife remains virgin (e) Reason: danger to the health of spouse &
after 3 yrs, husband presumed impotent & has offspring/s
burden to prove otherwise (Tompkins v (f) Same as incurable impotency
Tompkins) (g) Not subject to ratification cannot be ratified
(g) REFUSAL of wife to be examined DOES NOT or convalidated by prescription or
PRESUME impotency because Filipino women cohabitation:
are inherently shy & bashful; TC must order (a) Prior subsisting marriage; would result in
physical examination because w/o proof of anomalous relationship
impotency, she is presumed potent; to order (b) Vitiated by impotency remains as long as
her to undergo physical exam does not afflicted
infringe constitutional rights against self- (c) Vitiated by affliction of STD remains as
incrimination (Jimenez v Canizares) long as afflicted
(h) Villanueva vs. CA (2006): Absence of (d) Affliction of STD is unknown to the other
cohabitation is not a ground for annulment. spouse (Balane)
(i) NOTE: if wife continues to refuse to undergo (e) The other spouse must also be free from a
physical exam, she can be held for similar STD. (Balane)
CONTEMPT & ordered to be confined in jail (h) 2 & 3 above prescribe w/in 5 yrs by Art. 47(5)
until she does so
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Marriages Not Subject to Ratification/ Convalidation in the proper cases to marriages which are declared
by cohabitation ab initio or annulled by final judgment under Articles
(1) One spouse is incurably impotent (Art. 47 – 40 and 45 (Art. 50(1)).
prescription: 5 years)
(2) One spouse has an incurable STD (Art. 47 – Final judgment in such cases shall provide for the
prescription: 5 years) liquidation, partition, and distribution of the:
(3) Sane spouse marries an insane spouse w/o (1) Properties of the spouses
knowledge of insanity (2) Custody and support of the common children
(3) Delivery of their presumptive legitimes
Presence of Prosecutor (a) Unless such matters had been adjudicated
Art. 48: To prevent collusion between the parties, in previous judicial proceedings (Art. 50(2))
fabrication or suppression of evidence, the prosecuting (b) All creditors (of the spouses/property regime)
attorney or fiscal shall appear on behalf of the State. shall be notified of the proceedings for
liquidation (Art. 50(2 and 3))
EFFECT OF PENDING ACTIONS/DECREE
In the partition, the conjugal dwelling and lot shall be
Art. 49: During the pendency of the action and in the adjudicated to the spouse with whom majority of the
absence of adequate provisions in a written agreement common children remain (Art. 102 and 129) (Art.
between the spouses, the Court shall provide for the 50(4)
support of the spouses and the custody and support of
their common children. The Court shall give Presumptive legitimes, computed as of the date of
paramount consideration to the moral and material the final judgment, shall be delivered in cash,
welfare of said children and their choice of the parent property or sound securities:
with whom they wish to remain as provided for in Title (1) Unless the parties, by mutual agreement
IX. It shall also provide for appropriate visitation rights judicially approved, had already provided for such
of the other parent. (Art. 51(1))
(2) The children/guardian/trustee of property may
(1) The court shall provide for the support of the ask for the enforcement of the judgment (Art.
spouses, 51(2))
(2) The custody and support of the common children, (3) The delivery of the presumptive legitimes shall
giving paramount consideration to their moral not prejudice the ultimate successional rights,
and material welfare, their choice of parent with but the value of the properties already received
whom they wish to remain. shall be considered as advances on their legitime
(3) The court shall also provide for visitation rights of (Art. 51(3))
other parent.
Generally, children born or conceived within void
Decisions on the nullification of the marriage marriages are illegitimate.
Art. 48 (2): In the cases referred to in the preceding
paragraph, no judgment shall be based upon a Exceptions:
stipulation of facts or confession of judgment. (a) Children conceived or born before the judgment
under Article 36 has become final and executor
Stipulation of Facts: An admission by both parties (Art. 54)
after agreeing to the existence of any of the grounds (b) Children conceived or born of subsequent
or facts that would constitute a void/voidable marriages under Article 53 (Art. 54)
marriage
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These must be filed within 5 years after occurrence of (2) Threatening to cause the woman or her child
cause (Article 57) physical harm;
(1) Repeated physical violence or grossly abusive (3) Attempting to cause the woman or her child
conduct directed against the petitioner, a physical harm;
common child, or a child of the petitioner; (4) Placing the woman or her child in fear of
(2) Physical violence or moral Pressure to compel the imminent physical harm;
petitioner to change religious or political (5) Attempting to compel or compelling the woman or
affiliation; her child to engage in conduct which the woman
(3) Attempt of respondent to Corrupt or induce the or her child has the right to desist from or desist
petitioner, a common child, or a child of the from conduct which the woman or her child has
petitioner, to engage in prostitution, or the right to engage in, or attempting to restrict or
connivance in such corruption or inducement; restricting the woman's or her child's freedom of
(4) Final judgment sentencing the respondent to movement or conduct by force or threat of force,
imprisonment of more than six years, even if physical or other harm or threat of physical or
pardoned; other harm, or intimidation directed against the
(5) Drug addiction or habitual alcoholism of the woman or child. This shall include, but not
respondent; limited to, the following acts committed with the
(6) Lesbianism or Homosexuality of the respondent; purpose or effect of controlling or restricting the
(7) Contracting by the respondent of a subsequent woman's or her child's movement or conduct:
Bigamous marriage, whether in the Philippines (a) Threatening to deprive or actually depriving
or abroad; the woman or her child of custody to her/his
(8) Sexual infidelity or perversion; family;
(9) Attempt by the respondent Against the life of the (b) Depriving or threatening to deprive the woman
petitioner; or or her children of financial support legally due
(10) Abandonment of petitioner by respondent her or her family, or deliberately providing the
without justifiable cause for more than one year. woman's children insufficient financial
support;
People v. Zapata and Bondoc (1951): (c) Depriving or threatening to deprive the woman
Adultery is not a continuing crime, but is or her child of a legal right;
consummated and exhausted at the moment of carnal (d) Preventing the woman in engaging in any
union. Each sexual act constitutes one act of adultery. legitimate profession, occupation, business or
As such, every sexual act is a ground for legal activity or controlling the victim's own money
separation. or properties, or solely controlling the
conjugal or common money, or properties;
Gandioco v. Peñaranda (1989): (6) Inflicting or threatening to inflict physical harm on
In sexual infidelity as a ground for legal separation, oneself for the purpose of controlling her actions
there is no need for prior conviction for concubinage, or decisions;
because legal separation only requires a (7) Causing or attempting to cause the woman or her
preponderance of evidence, as opposed to proof child to engage in any sexual activity which does
beyond reasonable doubt required in concubinage. not constitute rape, by force or threat of force,
physical harm, or through intimidation directed
Lapuz Sy v. Eufemio (1972): against the woman or her child or her/his
The death of one party in a legal separation case immediate family;
abates the action. This is because the death of either (8) Engaging in purposeful, knowing, or reckless
spouse automatically dissolves the marriage. An conduct, personally or through another, that
action for legal separation is also purely personal alarms or causes substantial emotional or
between the spouses. psychological distress to the woman or her child.
This shall include, but not be limited to, the
Dela Cruz. v. Dela Cruz (1968): following acts:
Abandonment is not mere physical estrangement but (a) Stalking or following the woman or her child in
also financial and moral desertion. There must be an public or private places;
absolute cessation of marital relations, duties, and (b) Peering in the window or lingering outside the
rights with the intention of perpetual separation. residence of the woman or her child;
(c) Entering or remaining in the dwelling or on the
ACTS OF VIOLENCE ACCORDING TO RA 9262
property of the woman or her child against
(1) Causing physical harm to the woman or her child; her/his will;
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(d) Destroying the property and personal apply in cases where violence, as used in RA 9262
belongings or inflicting harm to animals or (Anti-Violence Against Women and their Children), is
pets of the woman or her child; and alleged. The case should be heard as soon as
(e) Engaging in any form of harassment or possible by the court.
violence;
(9) Causing mental or emotional anguish, public CONFESSION OF JUDGMENT
ridicule or humiliation to the woman or her child, No decree of legal separation shall be based upon a
including, but not limited to, repeated verbal and stipulation of facts or a confession of judgment (Art.
emotional abuse, and denial of financial support 60, par. 1. FC).
or custody of minor children of access to the
woman's child/children. Note: Art. 60 par. 1 applies only if the judgment was
based solely on the stipulation of facts or solely on
DEFENSES the confession of judgment. Thus, if other grounds
GROUNDS FOR DENYING LEGAL SEPARATION (ARTICLE 56) were used, Art. 60 par. 1 is not applicable. (Balane)
(4CMPRD):
(1) Condonation by aggrieved party Ocampo v Florenciano (1960):
(2) Consent by aggrieved party to the commission of The prohibition on confession of judgment does not
the offense mean that the Court will not grant petition if one party
(3) Connivance between parties in the commission of admits to being guilty of the charges of adultery. The
the offense point of this provision is that the Court should still
(4) Mutual guilt or Recrimination between spouses in admit evidence, not decide just based on an admission
the commission of any ground for legal of guilt. Because what is prohibited is handing down a
separation decree of legal separation based solely on a confession
(5) Collusion between parties to obtain decree of of judgment.
legal separation
(6) Prescription of action for legal separation (Art. 57: EFFECTS OF FILING PETITION
5 years from occurrence of the cause of action) (1) The spouses are entitled to Live separately, but
(7) Reconciliation of parties during pendency of the marital bond is not severed. (Art. 61 (1)
action (Art. 66 par.1) (2) Administration of Community or Conjugal Property
(8) Death of either party during pendency of action – If there is no written agreement between the
(Lapuz-Sy vs. Eufemio) parties, the court shall designate one of them or a
third person to administer the ACP or CPG. (Art.
COOLING-OFF PERIOD AND RECONCILIATION 61, par. 2)
EFFORTS
Action cannot be tried before six months have EFFECTS OF PENDENCY
elapsed from the filing of the petition (Art. 58). The Court shall provide for: (Art. 62, cf. Art. 49. FC)
(a) Support of spouses
Action cannot be tried unless the court has (b) Custody of children
attempted to reconcile the spouses, and determined The court shall give custody of children to one of
that despite such efforts, reconciliation is highly them, if there is no written agreement between
improbable (Art. 59) the spouses. It shall also provide for visitation
rights of the other spouse.
Note: This is without prejudice to judicial (c) Visitation rights of the other spouse
determination of custody of children, alimony, and
support pendente lite. EFFECTS OF LEGAL SEPARATION
(1) The spouses can live separately (Art. 63) but the
Araneta vs. Concepcion, (1956): marriage bonds are not severed.
Courts can still resolve other issues, pending the (2) The ACP or CPG shall be dissolved and liquidated,
waiting period or cooling off period. In resolving issues, and the share of the guilty spouse shall be
try not to touch, as much as possible, on the main forfeited in favor the common children, previous
issue (i.e. adultery if that is the ground used). However, children, or innocent spouse, in that order (Art.
Court must still receive evidence if just to settle 63. cf. Art. 43, par. 2).
incidental issues of support and custody. (3) Custody of the minor children shall be awarded to
the innocent spouse (Art. 63, cf. Art 213)
Note: This provision of the Family Code dictating a (4) Guilty spouse shall be disqualified from Inheriting
mandatory 6-month cooling-off period does not from innocent spouse by intestate succession.
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EFFECTS OF AFFIDAVIT OF REAPPEARANCE, JUDICIAL DECLARATION OF NULLITY, ANNULMENT AND LEGAL SEPARATION
Void Marriages Terminated Marriage (Art. Voidable Marriages Legal Separation
41)
Status of Marital ties
Severed Severed Severed Not Severed
Status of Marriage
Void ab initio Subsequent marriage is Void Valid
terminated (not
invalidated)
Status of Children born and conceived before termination
Illegitimate Legitimate Legitimate Legitimate
EXCEPT: Art. 36 and 35 conceived
and born before judgement
(legitimate)
Custody of Children
Court Proceeding Court Proceeding Court Proceeding Innocent Spouse
Property Relations
(1) Dissolution and Liquidation of properties
(a) Guilty/Bad Faith spouse will forfeit his/her share from the Net Profits to the (in order):
(i) Common children
(ii) Children of the guilty spouse
(iii) Children of the innocent spouse
(2) Notification of creditors with the proceedings for liquidation
(3) Conjugal dwelling to be adjudicated to the spouse who has majority custody of common children
(4) Insurance policy may be revoked only by the innocent spouse (Legal Separation: Only within 5 years)
(5) Spouse in bad faith/guilty shall be disqualified to inherit (testate and intestate)
Donation Propter Nuptias
Valid, but if donee contracted marriage in bad faith, revoked by operation of law May be revoked within 5
years
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MANAGEMENT OF HOUSEHOLD
This is the right and duty of both spouses.
Property Relations of the
EFFECT OF NEGLECT OF DUTY
In case the other spouse neglects his or her duties or
Spouses
commits acts which tend to bring danger, dishonor
or injury to the family, the aggrieved party may apply MARRIAGE SETTLEMENTS
to the court for relief. (Art. 72) Art. 75. Future spouses may agree upon, in the
marriage settlement, which property regime will
Injury contemplated is physical, moral, emotional or govern their marriage (ACP, CPG, complete
psychological, not financial. separation of property, other regimes). However, in
the absence of a marriage settlement, or when the
EXERCISE OF PROFESSION regime agreed upon is void, the system of absolute
Either spouse may exercise any legitimate community of property as established by this Code
profession, without need for consent of the other. shall govern.
(a) The other spouse may only object on valid,
serious, and moral grounds. Marriage settlements are considered accessory to
(b) In case of disagreement, the Court shall decide the marriage, therefore as per Art. 81, stipulations in
whether: consideration of future marriage and donations will
(1) The objection is proper, and be void if the marriage does not take place.
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Mateo v. Lagua (1969): Donations propter nuptias are without onerous consideration, marriage being merely the
occasion or motive for the donation, not its cause. Being liberalities, they remain subject to reduction for
inofficiousness upon the donor’s death, if they should infringe the legitime of a forced heir.
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General rule: Spouses cannot donate to each other, directly or indirectly (donations made
by spouses to each other during the marriage are void). [Art. 87]
Exception: Moderate gifts on the occasion of any family rejoicing.
Harding v. Commercial Union, (1918): The prohibition on donations can only be assailed by
Rules for donations
persons who bear such relation to the parties or the property itself, that their rights are
during marriage
being interfered with. Here, the insurance company of the donated car cannot assail the
validity of the donation. In addition, the codal exception of “moderate gifts” depends on
the income class of the spouses and a car could be considered a “moderate gift” that does
not infringe the prohibition of donation between spouses.
Matabuena v Cervantes, (1971): The donation between common-law spouses falls within
Rules for donations the provision prohibiting donations between spouses during marriage.
between common-law Sumbad v. CA, (1999): The donation made by a man to a woman was held valid because no
spouses proof was shown that they were still living in a common-law relationship at the time of the
donation.
By the Nationality Rule [Art. 15], the rule that Absolute Community Property (ACP) is the default mode of property
relations absent any marriage settlement applies to all Filipinos, regardless of the place of the marriage and their
residence.
Exceptions:
(1) Where both spouses are aliens
(2) As to the extrinsic validity of contracts
(3) Contrary stipulation
Art. 81. Everything stipulated in marriage settlements in consideration of a future marriage are void if marriage
does not take place. However, stipulations that do not depend upon the celebration of marriage (e.g.: recognition
of paternity of illegitimate child) remain valid.
Art. 89. As a general rule, a waiver of rights is not allowed, except in the following cases:
(1) When there is judicial separation of property
(2) When there is legal separation
(3) When the marriage is dissolved by death of one of the spouses
(4) When the marriage is annulled
Art. 90. Co-ownership rules shall apply to ACP in matters not provided by the Family Code.
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Separation of Property
Agreed upon in the marriage settlements by the spouses
Mandatory under Arts. 103 & 130 (subsequent marriages contracted by a surviving spouse
When it applies without judicial settlement of previous property regime)
Default property regime when there is reconciliation between spouses after judicial separation
of property
Present or future property or both
Each spouse’s earnings from his or her own profession, business, or industry
What it consists
Natural, industrial or civil fruits of spouse’s separate properties
of
May be total or partial
If partial, property not considered separate is presumed to pertain to the ACP
Family expenses: Both spouses are liable in proportion to their income; if insufficient, based on
Liabilities the current value of their separate properties
Creditors for family expenses: Spouses solidarily liable
Spouses may own, dispose, possess, and administer separate estates without the consent of the
other
Ownership, Administration of exclusive properties may be transferred between spouses when:
administration, 1. One spouse becomes the other spouse’s guardian
enjoyment, and 2. One spouse is judicially declared an absentee
disposition 3. One spouse is given the penalty of civil interdiction
4. One spouse becomes a fugitive
Conveyance between the spouses is allowed under Art. 1490, NCC.
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Applicability
Man and woman living together as husband Man and woman living together as husband and wife, NOT
and wife, with capacity to marry (Art.5, capacitated to marry
without any legal impediment) (a) Under 18 years old
(a) at least 18 years old (b) Adulterous relationship
(b) not Art. 37 (incestuous void marriage) (c) Bigamous/polygamous marriage
(c) not Art. 38 (void marriage by reason of (d) Incestuous marriages under Art. 37
public policy) (e) Void marriages by reason of public policy under Art. 38
(d) not bigamous
Other void marriages due to absence of
formal requisite
Salaries and wages
Owned in equal shares Separately owned by parties
Properties acquired through exclusive funds
Remains exclusive, provided there is proof Remains exclusive
Villanueva v. CA (2004): Transfer of certificate Juaniza v. Jose (1979): Property acquired by a married party during
and tax declarations are not sufficient proof cohabitation with another not his spouse belongs to the CPG of
of joint contribution. the marriage, and the other party cannot be held jointly/severally
liable for it
Properties acquired by both through work and industry
Governed by rules on co-ownership Owned in common in proportion to respective contribution
Properties acquired while living together
Owned in equal shares since it is presumed to No presumption of joint acquisition. When there is evidence of
have been acquired through joint efforts joint acquisition but none as to the extent of actual contribution,
there is a presumption of equal sharing.
If one party did not participate in acquisition, Joaquina v. Reyes (2004): Prohibitions against donations between
presumed to have contributed through care spouses must likewise apply to donations between persons living
and maintenance of family and household together in illicit relations
Forfeiture
(1) In favor of their common children If one party is validly married to another his/her share in the co-
(2) In case of default of or waiver by any or all owned properties will accrue to the ACP/CPG of his/her existing
of the common children or their valid marriage
descendants, each vacant share shall
belong to the respective surviving If the party who acted in bad faith is not validly married to another,
descendants his/her share shall be forfeited in the same manner as that
In the absence of such descendants, such provided in Art 147.
share belongs to the innocent party
The same rules on forfeiture shall apply if both parties are in bad
faith.
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Villanueva v. CA (2004):
Transfer of certificate and tax declarations are not sufficient proof of joint contribution.
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(b) Then the judgment in favor of the creditor will (1) Executed & signed by husband and wife
be paid, plus all the costs of execution before the birth of the child.
(c) The excess, if any, shall be delivered to the (2) Recorded in the civil registry together with the
judgment debtor birth certificate of the child.
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vegetable, or sick with syphilis in the tertiary stage so (2) Within 2 years if the husband or all heirs live in
that copulation was not possible. But tuberculosis, the Philippines but do not reside in the same city
even in its most crucial stage, does not preclude or municipality where the child's birth took place
copulation between the sick husband and his wife. or was recorded
(3) Within 3 years if the husband or all heirs live
Jao v. CA (1987): outside the Philippines when the child's birth took
Blood-type matching is an acceptable means of place or was recorded in the Philippines
impugning legitimacy, covered by Art. 166(2), under
"biological or other scientific reasons." But this is only If the birth of the child has been concealed or was
conclusive of the fact of non-paternity. unknown to the husband, the above periods shall be
counted:
Legitimacy with regard to the mother: (1) From the discovery or knowledge of the birth of
(1) Child considered legitimate although [Art. 167]: the child, or
(a) Mother may have declared against its (2) From the discovery or knowledge of its
legitimacy registration,
(b) Mother may have been sentenced as an (3) Whichever is earlier.
adulteress (also applies to wife who was
raped) General rule: Only the husband can impugn the
(2) If the marriage is terminated and the mother legitimacy of a child. If he does not bring an action
contracted another marriage within 300 days within the prescribed periods, he cannot file such
after the termination of the former marriage, the action anymore thereafter, and this is also true with
rules shall govern in the absence of proof to the his heirs.
contrary [Art 168]:
(a) If child born before 180 days after the Exception: That the heirs of the husband may file the
solemnization of the subsequent marriage – action or continue the same within the periods
child is considered conceived during the prescribed in Art. 170 [Art. 171]:
former marriage, provided it be born within (a) If the husband died before the expiration of the
300 days after termination of the former period fixed for bringing his action
marriage (b) If he should die after the filing of the complaint
(b) If child born after 180 days following the without having desisted therefrom
celebration of the subsequent marriage – (c) If the child was born after the death of the
child is considered conceived during such husband.
marriage, even if it be born within 300 days
after the termination of the former marriage Sayson v. CA (1992): Legitimacy can only be attacked
directly.
Note: The legitimacy or illegitimacy of a child born
after 300 days following the termination of the PROOF OF FILIATION
marriage – burden of proof upon whoever alleges Legitimate children may establish their filiation by
the status. [Art. 169] any of the following [Art. 172]:
(1) Primary Evidence
[Tolentino:] If nobody asserts the legitimacy or (a) Their record of birth appearing in the civil
illegitimacy of the child described in Art. 169, the registry.
child should be considered illegitimate unless (b) An admission of his filiation (legitimate or
legitimacy is proved. Legitimacy cannot be presumed illegitimate) by his parent or parents in a
here since the birth was beyond the 300-day period public document or a private handwritten
of gestation. While it goes against the policy of law instrument and signed by said parent or
to lean in favor of legitimacy, this interpretation is parents
better than the anomalous situation created by Art.
169, which is a child without a status. (2) Secondary Evidence
(a) Proof of open and continuous possession of
ACTION FOR IMPUGNING LEGITIMACY [ARTS. 170 AND 171] status as legitimate or illegitimate child
May be brought within 1, 2, or 3 years from the (b) Any other means stated by the rules of court
knowledge of the birth, or the knowledge of or special laws
registration of birth.
(1) Within 1 year if husband or any heirs reside in Note: Only in the absence of primary evidence can
the same city or municipality where the child was secondary evidence be admitted
born or his birth was recorded.
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ACTION FOR CLAIMING FILIATION [ART. 173]: reputation or tradition regarding pedigree like
(a) The child can bring the action during his or her inscriptions on tombstones, monuments, or coffin
lifetime, and once commenced such action plates.
survives even after the death of the parents. The
action does not prescribe as long as he lives. Eceta v. Eceta (2004):
(b) If the child dies during minority or in a state of Signature of the father on the birth certificate is
insanity, such action shall be transmitted to his considered as an acknowledgement of paternity and
heirs, who shall have a period of five years within mere presentation of a duly authenticated copy of such
which to institute the action. certificate will successfully establish filiations.
RIGHTS OF LEGITIMATE CHILDREN [ART. 174]: Heirs of Rodolfo Bañas v. Heirs of Bibiano Bañas
(a) To bear the surnames of the father and the (1985):
mother, in conformity with the provisions of the "Su padre [Your father]" ending in a letter is only proof
Civil Code on Surnames of paternal solicitude and not of actual paternity.
(b) To receive support from their parents, their Signature on a report card under the entry of
ascendants, and in proper cases, their brothers "Parent/Guardian" is likewise inconclusive of open
and sisters, in conformity with the provisions of admission.
this Code on Support
(c) To be entitled to the legitimate and other De Jesus v. Syquia (1933):
successional rights granted to them by the Civil By "open and continuous possession of the status of a
Code legitimate child" is meant the enjoyment by the child
of the position and privileges usually attached to the
ILLEGITIMATE CHILDREN status of a legitimate child, like bearing the paternal
Illegitimate children may establish their illegitimate surname, treatment by the parents and family of the
filiation in the same way and on the same evidence child as legitimate, constant attendance to the child's
(primary or secondary) as legitimate children. [Art. support and education, and giving the child the
175] reputation of being a child of his parents.
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Persons whose written consent is necessary for Posting of the petition, then recommendation by
adoption [Sec. 9] the Regional Director of the DSWD (5 days each)
(1) The prospective adoptee if 10 years or older
(2) The prospective adoptee’s biological parents,
legal guardian or the government instrumentality Issuance of certification by DSWD Secretary
or institution that has custody of the child declaring the child legally available for adoption
(3) The prospective adopters’ legitimate and adopted
children who are 10 years or older
(4) The prospective adopters’ illegitimate children, if Notes:
any, who are 10 years or older and living with (1) Abandoned child – no proper parental
them care/guidance; or parents have deserted him/her
(5) The spouse, if any, of the person adopting or to be for at least 3 continuous months, including
adopted. foundlings
Note: A decree of adoption shall be effective as of the (2) Neglected child – his basic needs have been
date the original petition was filed. It also applies in deliberately unattended or inadequately
case the petitioner dies before the issuance of the attended within 3 continuous months either by:
decree of adoption to protect the interest of the (a) Physical Neglect – child is malnourished, ill-
adoptee. clad, without proper shelter, or without proper
provisions
PRE-ADOPTION PROCEDURES (b) Emotional Neglect – child is maltreated,
(1) Voluntary Commitment of biological mother raped, seduced, exploited, overworked, or in
wanting to put her child up for adoption moral danger
Counseling on her options other than adoption (3) Required supporting documents for a petition for
the declaration of involuntary commitment:
(a) Social Case Study Report by DSWD / LGU /
Explaining to her the implications of losing her institution charged with child’s custody
parental authority over the child (b) Proof of efforts to locate the child’s
parents/known relatives
(1) Written certification that a local/national
Continuing services shall be provided after radio/TV case was aired on 3 different
relinquishment to cope with feelings of loss, etc. occasions
and other services for his/her reintegration to the (2) Publication in 1 newspaper of general
community circulation
(3) Police report / barangay certification of
due diligence
Biological parent(s) who decide to keep the child (4) Returned registered mail to last known
shall be provided with adequate services and address of parents
assistance to fulfill their parental responsibilities (c) Birth certificate, if available
(d) Recent photo and photo upon
abandonment of child
Biological parent(s) who decide to put the child
for adoption shall sign the Deed of Voluntary ADOPTION PROCEDURES
Commitment (DVC), which shall be rescissible
within 3 months from signing of the same Inquiry of prospective adopters at DSWD
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Recommendation and Consent of DSWD Art. 190 as amended. Rules on legal or intestate
succession to the estate of the adoptee:
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Note: Both legitimate and illegitimate children are Lacson v. San Jose-Lacson (1968):
entitled to support. Man is still liable for support in arrears since the
mother advanced it from a stranger (the uncle of the
PROPERTIES ANSWERABLE FOR SUPPORT daughters).
From the separate property of the obligor. If no
separate property, the ACP/CPG (if financially Lacson v. Lacson (2006):
capable) shall advance the support, to be deducted Acknowledgment of and commitment to comply with
from the obligor’s share upon liquidation of such support obligation through a note in his own
regime. [Art. 197] handwriting is proof that a demand was made.
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Note: De facto separation does not affect the ACP, PARENTAL AUTHORITY AND RESPONSIBILITY MAY NOT BE
except that the spouse who leaves the conjugal RENOUNCED OR TRANSFERRED EXCEPT IN THE CASES
home without just cause shall not be entitled to AUTHORIZED BY LAW. [ART. 210]
support. [Art. 100]
CASES WHEN PARENTAL AUTHORITY AND RESPONSIBILITY
AMOUNT MAY BE TRANSFERRED OR RENOUNCED:
The amount of support is in proportion to the means (a) Adoption;
of the provider and the needs of the receiver, and can (b) Guardianship; or
be reduced or increased if such circumstances (c) Commitment of the child in an entity or
change. [Arts. 201, 202] institution engaged in child care or in a children’s
home
WHEN DEMANDABLE
(a) The obligation to give support shall be RULES AS TO THE EXERCISE OF PARENTAL AUTHORITY:
DEMANDABLE from the time the person who has (a) Jointly exercised by the father and mother over
a right to receive the same needs it for their common children, but in case of
maintenance, but it shall not be PAYABLE except disagreement, the father's decision shall prevail,
from the date of judicial or extra-judicial demand. unless there is a judicial order to the contrary [Art.
[Art. 203] 211]
(b) Support pendente lite may be claimed in (b) Exercised by the mother if the child is illegitimate
accordance with the Rules of Court. [Art. 203] [Art.176]
(c) Payment shall be made within the first five days (c) Children under parental authority shall always
of each corresponding month. When the recipient observe respect and reverence towards their
dies, his heirs shall not be obliged to return what parents and are obliged to obey them [Art. 211]
he has received in advance. [Art. 203]
CHARACTERISTICS OF PARENTAL AUTHORITY:
OPTIONS (1) Natural right and duty of parents [Art. 209, FC]
(a) Payment of the amount; or (2) Cannot be renounced, transferred or waived,
(b) Receiving and maintaining the recipient in the except in cases authorized by law [Art 210, FC]
home of the provider, unless there is a legal or (3) Jointly exercised by the father and the mother
moral obstacle for doing so. [Art. 211, FC]
(4) Purely personal and cannot be exercised through
ATTACHMENT agents
The right to receive support as well as any money or (5) Temporary
property obtained as such support shall not be levied
upon on attachment or execution. (Art. 205) PARENTAL PREFERENCE RULE:
The natural parents, who are of good character and
[Tolentino:] This is to protect that which the law gives who can reasonably provide for the child, are
to the recipient against want and misery. ordinarily entitled to custody as against all persons.
[Santos v CA (1995)]
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(4) The court shall take into account all relevant SUBSTITUTE PARENTAL AUTHORITY OVER DISADVANTAGED
considerations, especially the choice of the child CHILDREN (ART. 217)
over seven years of age, unless the parent chosen Entrusted in summary judicial proceedings to:
is unfit [Art. 213 par. 1] (1) Heads of children’s homes
(5) Substitute parental authority [Art. 214] (2) Orphanages
(a) In case of death, absence or unsuitability of Similar institutions duly accredited by the proper
the parents, substitute parental authority shall government agency (such as the DSWD)
be exercised by the surviving grandparent
(b) When several grandparents survive, the one Who are disadvantaged children:
designated by the court shall exercise (1) Foundlings
parental authority, taking into account all (2) Abandoned
relevant considerations, especially the choice (3) Neglected
of the child over seven years of age, unless the (4) Abused
grandparent chosen is unfit (5) Others similarly situated
DESCENDANT’S PRIVILEGE OF REFUSAL TO TESTIFY [ART. PERSONS EXERCISING SPECIAL PARENTAL AUTHORITY
215]: No descendant shall be compelled, in a criminal [ART. 218 FC]
case, to testify against his parents and grandparents. (1) School, its administrators and teachers; or
(2) The individual, entity or institution engaged in
Exception: When such testimony is indispensable in child care
(1) a crime against the descendant, or (2) a crime by
one parent against the other. Note: Exercised over minor child while under their
supervision, instruction or custody; authorized
TENDER YEARS PRESUMPTION: activities include those conducted both within or
NO child under 7 years of age shall be separated outside the school, entity or institution
from the mother, unless the court finds compelling
reasons to order otherwise. [Art. 213 par 2; Gamboa v. Substitute Special Parental Authority
CA (2007)] Parental Authority
It is exercised in It is exercised concurrently with
Examples of compelling reasons are: case of death, the parental authority of the
(1) When the mother is insane; absence, or in parents and rests on the theory
(2) with a communicable disease that might case of that while the child is in the
endanger the life or health of the child; unsuitability of custody of the person exercising
(3) is maltreating the child; or parents. special parental authority, the
(4) has another child by another man who lives with parents temporarily relinquish
her. [Cervantes v. Fajardo (1989)] parental authority over the child
to the latter.
Note: Prostitution or infidelity to husband does not
make a mother unfit as parent. St. Mary’s Academy v. Carpitanos (2002):
The special parental authority and responsibility
SUBSTITUTE AND SPECIAL PARENTAL applies to all authorized activities, whether inside or
AUTHORITY outside the premises of the school, entity or institution.
PERSONS EXERCISING SUBSTITUTE PARENTAL AUTHORITY
LIABILITY OF THOSE EXERCISING SPECIAL PARENTAL
IN DEFAULT OF PARENTS OR JUDICIALLY APPOINTED
AUTHORITY OVER THE CHILD (ART. 219 FC)
GUARDIAN (IN THIS ORDER):
(1) Principal and solidary liability for damages
(a) The surviving grandparent [Art. 214, FC]
caused by the acts or omissions of the minor child
(b) Oldest brother or sister, over 21 years old, unless while under their special parental authority
unfit or unqualified.
(2) Subsidiary liability for the parents and judicial
(c) Child’s actual custodian, over 21 years old, unless
guardians of the minor, or those exercising
unfit or unqualified.
substitute parental authority over such minor for
his acts and omissions
Note: The same order applies to the appointment of
judicial guardian over the property of the child
Note: Both groups can use the defense that they
exercised proper diligence to avoid liability
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EFFECT OF PARENTAL AUTHORITY UPON THE (3) If the court finds the petition meritorious,
PERSONS OF THE CHILDREN disciplinary measures may include the
commitment of the child for not more than 30
RIGHTS OF PARENTS UPON THE PERSON OF THE CHILDREN: days in entities or institutions engaged in child
(1) To have them in their custody [Art. 220] care or in children’s homes duly accredited by the
(2) To represent them in all matters affecting their proper government agency. [Art. 224]
interests [Art. 220] (a) The parent exercising parental authority shall
(3) To demand from them respect and obedience not interfere with the case of the child
and impose necessary discipline on them [Art. whenever committed but shall provide for his
220] support. [Art. 224]
(4) To give or withhold consent to their marriage, (b) Upon proper petition or at its own instance,
their marriage settlements, their donations by the court may terminate the commitment of
reason of marriage, adoption, and employment the child whenever just and proper. [Art. 224]
(Art. 220) If the court finds the petitioner at fault, irrespective of
(5) To disinherit them for just cause (Tolentino) the merits of the petition, or when the circumstances
so warrant, the court may also order the deprivation
People v Silvano (1999): or suspension of parental authority or adopt such
Art. 220 which states that the parent has a right to other measures as it may deem just and proper. [Art.
impose necessary discipline on the child does not 223]
authorize the parent to invade or disregard the
child’s honor and dignity under the mask of EFFECTS OF PARENTAL AUTHORITY UPON THE
discipline. Such acts can never be justified as PROPERTY OF THE CHILDREN
parental punishment. (a) The father and mother shall jointly exercise legal
guardianship over the property of the minor child
DUTIES OF PARENTS UPON THE PERSON OF THE CHILDREN: without court appointment. [Art. 225]
(a) To support them, providing for their upbringing in (b) In case of disagreement, the father’s decision
accordance with their means [Art. 220] shall prevail, unless there is judicial order to the
(b) To educate, instruct, and provide them with moral contrary. [Art. 225]
and spiritual guidance and love and (c) The ordinary rules on guardianship shall be
understanding [Art. 220] merely suppletory except when the child is under
(c) To defend them against unlawful aggression [Art. special parental authority, or the guardian is a
220] stranger, or a parent has remarried, in which case
(d) To give their lawful inheritance (Tolentino) the ordinary rules on guardian ship shall apply.
(e) To perform such other duties as are imposed by [Art. 225]
law [Art. 220] (d) If the market value of the property or the annual
(f) To answer for damages caused by their fault or income of the child exceeds P50,000, the parent
negligence and for the civil liability for crimes is required to furnish a bond of not less than 10%
committed by them. [Art. 221] of the value of the child’s property or income.
[Art. 225]
SUBSTITUTE REPRESENTATION [ART. 222]
The courts may appoint a guardian of the child’s PROCEDURE IN THE APPROVAL OF THE PARENT’S BOND
property, or a guardian ad litem when the best [ART. 225]
interests of the child so requires. (a) A verified petition for approval of the bond shall
be filed in the proper court of the place where the
COURT ASSISTANCE IN THE DISCIPLINE OF THE CHILD child resides.
[ARTS. 223-224] (b) If the child resides in a foreign country, the
(1) The parents or, in their absence or incapacity, the petition shall be filed in the proper court of the
individual, entity or institution exercising parental place where the property or any part thereof is
authority, may petition the proper court of the situated.
place where the child resides, for an order (c) The petition shall be docketed as a summary
providing for disciplinary measures over the child. special proceeding. The court shall determine
[Art. 223] the amount of the bond, but shall not be less
(2) The child shall be entitled to the assistance of than 10% of the market value of the child’s
counsel, either of his choice or appointed by the property or of his annual income.
court, and a summary hearing shall be conducted
wherein the petitioner and the child shall be
heard. [Art. 223]
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OWNERSHIP OF CHILD’S ACQUISITIONS [ART. 226] (4) Upon final judgment of a competent court
The property of the unemancipated child earned or divesting the party concerned of parental
acquired with his work or industry or by onerous or authority.
gratuitous title shall belong to the child in ownership
and shall be devoted exclusively to the latter’s GROUNDS FOR SUSPENSION OF PARENTAL AUTHORITY
support and education, unless the title or transfer [CLEBC; ART. 230-231]
provides otherwise. (1) Conviction of parent for crime which carries with it
the penalty of civil interdiction
PARENT’S USUFRUCT [ART. 226] (2) Treats child with excessive harassment and
The right of the parents over the fruits and income cruelty
(not the property itself) of the child’s property shall (3) Gives corrupting orders, counsel, or example
be limited primarily to the child’s support and (4) Compels child to beg
secondarily to the collective daily needs of the family. (5) Subjects or allows acts of lasciviousness
WHEN PARENTS ENTRUST THE MANAGEMENT OF THEIR SCOPE OF SUBSTITUTE AND SPECIAL PARENTAL AUTHORITY
PROPERTIES TO A CHILD [ART. 227] [ART. 233]
(a) If the parents entrust the management or (a) The person exercising substitute parental
administration of any of their properties to an authority shall have the same authority over the
unemancipated child, the net proceeds of such person of the child as the parents.
property shall belong to the owner. (b) In no case shall the school administrators, teacher
(b) The child shall be given a reasonable monthly or individual engaged in child care exercising
allowance in an amount not less than that which special parental authority inflict corporal
the owner would have paid if the administrator punishment upon the child.
were a stranger, unless the owner grants the
entire proceeds to the child. RA 7610 – CHILD ABUSE LAW
(c) In any case, the proceeds thus given in whole or An ascendant, stepparent or guardian of a minor
in part shall not be charged to the child’s who shall induce, deliver or offer the minor to:
legitime. (1) Any one prohibited to keep the minor or
(2) Any one prohibited to have in his company a
SUSPENSION OR TERMINATION OF PARENTAL minor, twelve (12) years or under or who is ten (10)
AUTHORITY; years or more his junior in any public or private
RA 7610 – CHILD ABUSE LAW place, hotel, motel, beer joint, discotheque,
cabaret, pension house, sauna or massage parlor,
PARENTAL AUTHORITY PERMANENTLY TERMINATES beach and/or other tourist resort or similar places
(1) Upon death of parents [Art. 228] shall suffer penalties and imprisonment.
(2) Upon death of child [Art. 228]
(3) Upon emancipation of child [Art. 228] Note: Those not prohibited to have in his company
(4) If the parents exercising parental authority has such minor in any of the mentioned places: anyone
subjected the child or allowed him to be who is related within the fourth degree of
subjected to sexual abuse [Art. 232] consanguinity or affinity or any bond recognized by
law, local custom and tradition or acts in the
Note: In the case of death of parents, there is no performance of a social, moral or legal duty
absolute termination of parental authority because
while the child is still a minor, the grandparents,
brothers and sisters, or a guardian may exercise
substitute parental authority over the child [Art. 216]
Emancipation, as amended
TERMINATION OF PARENTAL AUTHORITY WHICH CAN BE
REVIVED BY FINAL JUDGMENT [ART. 229]
by RA 6809
(1) Upon adoption of the child;
(2) Upon the appointment of a general guardian for Art. 234. Emancipation takes place by the attainment
the child; of majority. Unless otherwise provided, majority
(3) Upon judicial declaration of commences at the age of eighteen years.
(a) Abandonment of the child in a case filed for
the purpose Art. 236. Emancipation shall terminate parental
(b) Absence or incapacity of the person exercising authority over the person and property of the child who
parental authority shall then be qualified and responsible for all acts of
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civil life, save the exceptions established by existing exercised by the proper court authorized to hear
laws in special cases. family cases, if one exists, or in the regional trial
court or its equivalent sitting in the place where
Contracting marriage shall require parental consent either of the spouses resides. [Art. 241]
until the age of twenty-one.
NOTIFICATION TO OTHER SPOUSE:
Nothing in this Code shall be construed to derogate (1) Upon the filing of the petition, the court shall
from the duty or responsibility of parents and notify the other spouse, whose consent to the
guardians for children and wards below twenty-one transaction is required, of said petition, ordering
years of age mentioned in the second and third said spouse to show cause why the petition
paragraphs of Article 2180 of the Civil Code. should not be granted, on or before the date set
RA 6809: in said notice for the initial conference.
By virtue of this law, emancipation can no longer (2) The notice shall be accompanied by a copy of the
take place by virtue of the minor’s marriage or by the petition and shall be served at the last known
concession of the parents to a minor in a recorded address of the spouse concerned. [Art. 242]
public instrument.
PROCEDURE:
(1) A preliminary conference shall be conducted by
the judge personally without the parties being
assisted by counsel.
Summary Judicial (2) After the initial conference, if the court deems it
Proceedings in the Family useful, the parties may be assisted by counsel at
the succeeding conferences and hearings. [Art.
Law 243]
(3) If the petition is not resolved at the initial
conference, said petition shall be decided in a
PROCEDURAL RULES PROVIDED FOR IN THIS
summary hearing. Basis of summary hearing (at
TITLE SHALL APPLY TO [ART. 238]:
the sound discretion of the court):
(1) Separation in fact between husband and wife
(a) Affidavits
(2) Abandonment by one of the other
(b) Documentary evidence
(3) Incidents involving parental authority
(c) Oral testimonies at the court’s sound
discretion. If testimony is needed, the court
SEPARATION IN FACT
shall specify the witnesses to be heard and the
A verified petition alleging the following facts is
subject-matter of their testimonies, directing
required when [Art. 239]:
the parties to present said witnesses. [Art.
(a) A husband and wife are separated in fact; or,
246(a)]
(b) One has abandoned the other
WHEN APPEARANCE OF SPOUSES REQUIRED:
Situation: Where one of them seeks judicial
(1) In case of non-appearance of the spouse whose
authorization for a transaction where the consent of
consent is sought, the court shall inquire into the
the other spouse is required by law but such consent
reasons for his failure to appear, and shall require
is withheld or cannot be obtained
such appearance, if possible. [Art. 244]
(2) If, despite all efforts, the attendance of the non-
The petition shall:
consenting spouse is not secured, the court may
(1) Attach the proposed deed, if any, embodying the
proceed ex parte and render judgment as the
transaction, if none, shall describe in detail the
facts and circumstances may warrant. In any
said transaction and state the reason why the
case, the judge shall endeavor to protect the
required consent thereto cannot be secured.
interests of the non-appearing spouse. [Art. 245]
(2) The final deed duly executed by the parties shall
be submitted to and approved by the court.
NATURE OF JUDGMENT: The judgment of the court
shall be immediately final and executory. [Art 247]
SEPARATE CLAIM FOR DAMAGES: Claims for damages by
either spouse, except costs of the proceedings, may
RULES APPLICABLE FOR ADMINISTERING OR ENCUMBERING
be litigated only in a separate action. [Art. 240]
SEPARATE PROPERTY OF SPOUSE: The petition for
judicial authority to administer or encumber specific
JURISDICTION:
Jurisdiction over the petition shall,
separate property of the abandoning spouse and to
upon proof of notice to the other spouse, be
use the fruits or proceeds thereof for the support of
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Note:
(a) Petitions filed under Articles 223, 225 and 235 of
this Code involving parental authority shall be
verified. [Art. 249]
Funeral, NCC Arts. 305-310
(b) The rules in Chapter 2 hereof shall also govern
summary proceedings under this Chapter insofar The duty and the right to make arrangements for the
as they are applicable [Art. 253] funeral of a relative shall be in accordance with the
(c) The foregoing rules in Chapter 2 (Separation in order established for support, under Article 294 [Art.
Fact) and (Incidents Involving Parental Authority) 305]:
hereof shall likewise govern summary (1) Spouse
proceedings filed (2) Descendants in the nearest degree. In case of
(1) Declaration of presumptive death [Art. 41] descendants of the same degree, or of brothers
(2) Delivery of presumptive legitime [Art. 51] and sisters, the oldest shall be preferred.
(3) Fixing of family domicile [Art. 69] (3) The ascendants in the nearest degree. In case of
(4) Disagreements regarding one spouse’s ascendants, the paternal shall have a better right
profession, occupation, business, or activity (4) The brothers and sisters.
[Art. 73] (5) Municipal authorities – if there are no persons
(5) Disposition or encumbrance of common who are bound to support or if such persons are
property in ACP where one spouse is without means
incapacitated or unable to participate in the
NATURE OF FUNERAL: Every funeral shall be in keeping
administration; administration of absolute
community in a disagreement and the wife with the social position of the deceased. [Art. 306]
takes recourse within five years [Art. 96]
(6) Disposition or encumbrance of common The funeral shall be:
property in CPG where one spouse is (1) In accordance with the expressed wishes of the
incapacitated or unable to participate in the deceased.
administration; administration of absolute (2) In the absence of such expression, his religious
community in a disagreement and the wife beliefs or affiliation shall determine the funeral
takes recourse within five years, [Art. 124] rites.
(3) In case of doubt, the form of the funeral shall be
When wife and husband are de facto separated and decided upon by the person obliged to make
the CPG is insufficient, the spouse present shall, arrangements for the same, after consulting the
upon a petition, be given judicial authority to other members of the family [Art. 307]
administer or encumber any specific property of the
other spouse and use the fruits and proceeds thereof Note: No human remains shall be retained, interred,
to satisfy the latter’s share. [Art. 127] disposed of or exhumed without the consent of the
persons mentioned in articles 294 and 305.
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Funeral Expenses: The construction of a tombstone or (5) Illegitimate children referred to in Article 287 shall
mausoleum shall be deemed a part of the funeral bear the surname of the mother. [Art 368]
expenses, and shall be chargeable to the conjugal (6) Children conceived before the decree annulling a
partnership property, if the deceased is one of the voidable marriage shall principally use the
spouses [Art. 310]. surname of the father. [Art. 369]
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Exception to the Exception: (4) Those who may have over the property of the
Art. 381. When a person disappears from his domicile, absentee some right subordinated to the condition of
his whereabouts being unknown, and without leaving his death.
an agent to administer his property, the judge, at the
instance of an interested party, a relative, or a friend, Article 386. The judicial declaration of absence shall
may appoint a person to represent him in all that may not take effect until six months after its publication in
be necessary. a newspaper of general circulation.
This same rule shall be observed when under similar WHEN MAY A DECLARATION OF ABSENCE BE DECLARED?
circumstances the power conferred by the absentee (a) Two years without any news about the absentee
has expired. (b) Five years if the absentee left a person in charge
of administration of his property
Art. 382. The appointment referred to in the preceding (c) Declaration takes effect only after six months after
article having been made, the judge shall take the publication in a newspaper of general circulation
necessary measures to safeguard the rights and
interests of the absentee and shall specify the powers,
obligations and remuneration of his representative, WHO MAY ASK FOR A DECLARATION OF ABSENCE?
regulating them, according to the circumstances, by (1) Spouse present
the rules concerning guardians. (2) Heirs instituted in a will, who may present an
authentic copy of the same;
Art. 383. In the appointment of a representative, the (3) Relatives who may succeed by the law of intestacy;
spouse present shall be preferred when there is no (4) Those who may have some right over the property of
legal separation. the absentee, subordinated to the condition of his
death.
If the absentee left no spouse, or if the spouse present
is a minor, any competent person may be appointed ADMINISTRATION OF THE PROPERTY OF THE
by the court. ABSENTEE, ARTS. 387-389
Art. 387. An administrator of the absentee's property
REQUISITES: The judge may appoint a person to shall be appointed in accordance with Article 383.
represent absentee when:
(1) Person disappears from his domicile Art. 388. The wife who is appointed as an
(2) His whereabouts are unknown administratrix of the husband's property cannot
(3) No agent to administer his property alienate or encumber the husband's property, or that
(4) An interested party, a relative, or a friend files the of the conjugal partnership, without judicial authority.
action
Art. 389. The administration shall cease in any of the
WHO MAY BE APPOINTED AS REPRESENTATIVE?
following cases:
(1) Spouse present shall be preferred when there is (1) When the absentee appears personally or by means
no legal separation of an agent;
(2) If no spouse or spouse is incapacitated, any (2) When the death of the absentee is proved and his
competent person testate or intestate heirs appear;
(3) When a third person appears, showing by a proper
DECLARATION OF ABSENCE, ARTS. 384-389 document that he has acquired the absentee's
Art. 384. Two years having elapsed without any news property by purchase or other title.
about the absentee or since the receipt of the last
news, and five years in case the absentee has left a In these cases the administrator shall cease in the
person in charge of the administration of his property, performance of his office, and the property shall be at
his absence may be declared. the disposal of those who may have a right thereto.
Art. 385. The following may ask for the declaration of WHO MAY ADMINISTER THE PROPERTY?
absence: (a) Spouse present shall be preferred when there is
(1) The spouse present; no legal separation
(2) The heirs instituted in a will, who may present an (b) If no spouse or spouse is incapacitated, any
authentic copy of the same; competent person
(3) The relatives who may succeed by the law of
intestacy;
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Exception: Succession
(a) In succession, 10 years is required for
presumption of death. Civil Registrar
(b) If absentee disappeared after age 75, 5 years
shall be sufficient. ARTS. 407-413
Art. 407. Acts, events and judicial decrees concerning
EXTRAORDINARY ABSENCE the civil status of persons shall be recorded in the civil
Only 4 years is required for presumption to arise if: register.
(1) A person on board a vessel lost during a sea
voyage, or an aeroplane which is missing, who has Art. 408. The following shall be entered in the civil
not been heard of for four years since the loss of register:
the vessel or aeroplane; (1) Births;
(2) A person in the armed forces who has taken part (2) marriages;
in war, and has been missing for four years; (3) deaths;
(3) A person who has been in danger of death under (4) legal separations;
other circumstances and his existence has not (5) annulments of marriage;
been known for four years.
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Citizens of the Philippines who are presently residing or petition and shall show affirmatively that the petitioner
domiciled in foreign countries may file their petition, in is competent to testify to the matters stated. The
person, with the nearest Philippine Consulates. petitioner shall state the particular erroneous entry or
entries, which are sought to be corrected and/or the
The petitions filed with the city or municipal civil change sought to be made.
registrar or the consul general shall be processed in
accordance with this Act and its implementing rules The petition shall be supported with the following
and regulations. documents:
All petitions for the clerical or typographical errors (1) A certified true machine copy of the certificate or of
and/or change of first names or nicknames may be the page of the registry book containing the entry or
availed of only once. entries sought to be corrected or changed.
(2) At least two (2) public or private documents
GROUNDS showing the correct entry or entries upon which the
Who may file the petition and where? correction or change shall be based; and
(1) Any person having direct personal interest in the (3) Other documents which the petitioner or the city or
correction of a clerical or typographical error in an municipal civil registrar or the consul general may
entry and/or change of first name or nickname in consider relevant and necessary for the approval of the
the civil register petition.
(2) Verified petition with the local civil registry office
of the city or municipality No petition for correction of erroneous entry
(a) where the record being sought to be corrected concerning the date of birth or the sex of a person shall
or changed is kept be entertained except if the petition is accompanied by
(b) where the interested party is presently earliest school record or earliest school documents
residing or domiciled, if it will be impractical such as, but not limited to, medical records, baptismal
to submit in the place where record is kept (i.e. certificate and other documents issued by religious
when party has migrated to another place in authorities; nor shall any entry involving change of
the country gender corrected except if the petition is accompanied
(c) nearest Philippine Consulates, if the petitioner by a certification issued by an accredited government
is presently residing or domiciled in foreign physician attesting to the fact that the petitioner has
countries not undergone sex change or sex transplant. The
petition for change of first name or nickname, or for
Note: correction of erroneous entry concerning the day and
All petitions for the clerical or typographical errors month in the date of birth or the sex of a person, as the
and/or change of first names or nicknames may be case may be, shall be published at least once a week
availed of only once. for two (2) consecutive weeks in a newspaper of
general circulation.
Sec. 4. Grounds for Change of First Name or
Furthermore, the petitioner shall submit a certification
Nickname. – The petition for change of first name or
from the appropriate law enforcements, agencies that
nickname may be allowed in any of the following
he has no pending case or no criminal record.
cases:
(1) The petitioner finds the first name or nickname to
The petition and its supporting papers shall be filed in
be ridiculous, tainted with dishonor or extremely
three (3) copies to be distributed as follows: first copy
difficult to write or pronounce.
to the concerned city or municipal civil registrar, or the
(2) The new first name or nickname has been
consul general; second copy to the Office of the Civil
habitually and continuously used by the petitioner and
Registrar General; and third copy to the petitioner.
he has been publicly known by that by that first name
or nickname in the community: or
(3) The change will avoid confusion.
RULE 108, RULES OF COURT
Sec. 5. Form and Contents of the Petition. – The CANCELLATION OR CORRECTION OF ENTRIES IN
petition for correction of a clerical or typographical THE CIVIL REGISTRY
error, or for change of first name or nickname, as the
case may be, shall be in the form of an affidavit, Sec. 1. Who may file petition. - Any person interested in
subscribed and sworn to before any person authorized any act, event, order or decree concerning the civil
by the law to administer oaths. The affidavit shall set status of persons which has been recorded in the civil
forth facts necessary to establish the merits of the register, may file a verified petition for the cancellation
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or correction of any entry relating thereto, with the (2) Any act, event, order or decree concerning the
Court of First Instance of the province where the civil status of persons which has been recorded in
corresponding civil registry is located. the civil register
(3) Verified petition for the cancellation or correction
Sec. 2. Entries subject to cancellation or correction. - of any entry relating thereto with the Court of
Upon good and valid grounds, the following entries in First Instance of the province where the
the civil register may be cancelled or corrected: (a) corresponding civil registry is located
births; (b) marriages; (c) deaths; (d) legal separations;
ENTRIES SUBJECT TO CANCELLATION
(e) judgments of annulments of marriage; (f)
judgments declaring marriages void from the (a) Births
beginning; (g) legitimations; (h) adoptions; (i) (b) Marriages
acknowledgments of natural children; (j) (c) Deaths
naturalization (k) election, loss or recovery of (d) Legal separations
citizenship (l) civil interdiction; (m) judicial (e) Judgments of annulments of marriage
determination of filiation; (n) voluntary emancipation (f) Judgments declaring marriages void from the
of a minor; and (o) changes of name. beginning
(g) Legitimations
Sec. 3. Parties. - When cancellation or correction of an (h) Adoptions
entry in the civil register is sought, the civil registrar (i) Acknowledgments of natural children
and all persons who have or claim any interest which (j) Naturalization
would be affected thereby shall be made parties to the (k) Election, loss or recovery of citizenship
proceeding. (l) Civil interdiction
(m) Judicial determination of filiation
Sec. 4. Notice and publication. - Upon the filing of the (n) Voluntary emancipation of a minor
petition, the court shall, by an order, fix the time and (o) Changes of name
place for the hearing of the same, and cause
reasonable notice thereof to be given to the persons
named in the petition. The court shall also cause the
order to be published once a week for three (3)
consecutive weeks in a newspaper of general
circulation in the province.
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Property – All things which are, or may be, the object them with the intention to have them
of appropriation. [NCC 414] permanently attached to the land, and forming a
permanent part of it; the animals in these places
Characteristics (USA) are included;
(7) Fertilizer actually used on a piece of land;
(8) Mines, quarries, and slag dumps, while the
(1) Utility – capacity to satisfy human wants matter thereof forms part of the bed, and waters
(2) Substantivity and Individuality – separate and either running or stagnant;
autonomous existence (9) Docks and structures which, though floating, are
(3) Susceptibility of being appropriated – what cannot intended by their nature and object to remain at
be appropriated because of their distance, depth, a fixed place on a river, lake, or coast;
or immensity cannot be considered ‘things’ (i.e. (10) Contracts for public works, and servitudes and
stars, ocean) other real rights over immovable property.
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(b) By special treatment of Act 1508 (Chattel work in which they are utilized) they
Mortgage Law), growing crops may be subject recover their condition as movables.
of a Chattel Mortgage. (ii) If it is still needed for the industry but
(c) For the purpose of attachment: growing crops separated from the tenement
are to be attached in the same manner as temporarily, the property continues to be
realty. (Rule 59, Sec. 7) immovable.
(b) Requisites for Immovability in Par. 5:
(2) Par. 3 (i) Placed by the owner or the tenant (as
(a) Res vinta in Roman Law agent);
(b) “Attachment in a fixed manner”: breakage or (ii) Adapted to the needs of the industry or
injury in case of separation will be substantial work
e.g. wells, sewers, aqueducts and railways (c) Except: Estoppel
(i) Whether attached by the owner himself (d) Parties may, by agreement, treat as personal
or some other person property that which by nature would be real,
as long as no third parties would be
(3) Par. 7 prejudiced. That characterization is effective
Actually used (it has been spread over the land) between the parties. [Makati Leasing v.
Wearever(1983)]
Immovables by Destination: are essentially movables (e) Effect of Attachment
but by the purpose for which they have been placed (i) Machinery becomes part of the
in an immovable, partake of the nature of an immovable.
immovable [Par. 4, 5, 6 & 9] (ii) The installation of machinery and
(1) Par. 4 equipment in a mortgaged sugar central
(a) Requisites: for the purpose of carrying out the
(i) Placed by the owner or by the tenant (as industrial functions and increasing
agent); production, constitutes a permanent
(ii) With intention of attaching them improvement on said sugar central and
permanently even if adherence will not subjects said machinery and equipment
involve breakage or injury. to the mortgage constituted thereon.
(b) Where the improvement or ornaments placed [Berkenkotter v. Cu Unjieng(1935)]
by the lessee are not to pass to the owner at
the expiration of the lease, they remain (4) Par. 6
movables for chattel mortgage purposes. Requisites:
[Davao Sawmill v. Castillo(1935)] (a) Placed by the owner or the tenant (as agent);
(b) With the intention of permanent attachment;
(2) Par. 3 v. Par. 4 (c) Forming a permanent part of the immovable.
Par. 3 Par. 4
(5) Par. 9:
Cannot be separated Can be separated (a) A floating house tied to a shore and used as a
from immovable from immovable residence is considered real property,
without breaking or without breaking or considering that the waters on which it floats
deterioration deterioration are considered immovables.
Must be placed by (b) But if the floating house makes it a point to
Need not be placed by the owner, or by his journey from place to place, it assumes the
the owner agent, expressed or category of a vessel, and is considered
implied immovable
Real property by
Real property by Immovables by Analogy: Contracts for public works,
incorporation and
incorporation servitudes, other real rights over immovable property
destination
e.g. usufruct and lease of real property for a period of
(3) Par. 5 1 year and registered [Par. 10]
(a) Immovability depends upon their being
destined for use in the industry or work in the Note: Enumeration in Art. 415 not absolute
tenement; (1) Parties may by agreement treat as, but effective
(i) The moment they are separated, (from only as to them.
the immovable or from the industry or
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It is based, partly, upon the principle of estoppel. (c) Intellectual property – considered personal
[Evangelista vs. Alto Surety(1958)] property; it consists in the pecuniary benefit
which the owner can get by the reproduction
(2) For purposes of taxation, improvements on land or manufacture of his work.
are commonly taxed as realty, even though for
some purposes, they might be considered as (4) By forces of nature – e.g. electricity, gas, heat,
personalty. oxygen
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(7) In affecting third persons (3) Those for the development of the national wealth
(a) In transactions involving real property – must
be recorded in the Registry of Property to Includes natural resources such as minerals, coal,
affect third persons oil and forest
(b) In transactions involving personal property –
registration is not required, except for chattel (4) Patrimonial property
mortgages [Chattel Mortgage Register, NCC (a) Owned by the State over which it has the
2140] same rights as private individuals in relation
to their own property
BASED ON OWNERSHIP (b) Subject to the administrative laws and
Either of public dominion or private ownership [NCC regulations on the procedure of exercising
419] such rights.
(c) E.g. friar lands, escheated properties and
Churches and other consecrated objects are commercial buildings
considered outside the commerce of man; they are (d) Purpose:
considered neither public nor private property (i) Enables the State to attain its economic
ends
PUBLIC DOMINION (ii) Serves as a means for the State’s
Property of public dominion is outside the commerce subsistence and preservation
of man. They cannot be the subject matter of private (iii) Enables the State to fulfill its primary
contracts, cannot be acquired by prescription and mission
they are not subject to attachment and execution nor (e) Conversion of Property of Public Dominion for
burdened with a voluntary easement. Public Use to Patrimonial Property:
(i) Property of public dominion, when no
Public As defined by NCC 420 longer intended for public use or for
Dominion public service, shall form part of the
Public Used in Art XII, Section 2, 1987 patrimonial property of the State [NCC
Domain Constitution 422, Civil Code]
(ii) Requires a Declaration by the
Public Lands Public Land Act Government (executive or legislative
departments) that it is no longer needed
Characteristics: for public use or service.
(1) Not owned by the State but pertains to it as
territorial sovereign; to hold in trust for the Administered by Municipal Corporations: [NCC 424]
interest of the community. (1) Property for public use, in the provinces, cities,
(2) Purpose: For public use, and not for use by the and municipalities, consist of the provincial
State as a juridical person roads, city streets, municipal streets, the squares,
(3) Cannot be the subject of appropriation either by fountains, public waters, promenades, and public
the State or by private persons works for public service paid for by said provinces,
cities, or municipalities.
Classifications: (2) Patrimonial property of Municipal Corporations:
Administered by the State: [NCC 420] (a) The province or municipality, as a juridical
(1) Those intended for public use (roads, canals, entity, also possesses private property to
rivers, torrents, ports and bridges constructed by answer for its economic necessities.
the State, banks, shores, roadsteads, and others
of similar character)
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(b) Classification of Properties of provinces, cities, acquired with its private or corporate funds, the
and municipalities [Salas v. Jarencio, (1972)] presumption is that such land came from the
(i) Properties acquired with their own funds State upon the creation of the municipality.
in their private or corporate capacity over
which the political subdivision has Conversion
ownership and control Alienable Public Land converted to Private Property
(ii) Properties of public dominion held in trust through Prescription – Alienable public land held by a
for the State’s inhabitants are subject to possessor – personally/through predecessors-in-
the control and supervision of the State interest, openly, continuously and exclusively – for
30 years is CONVERTED to private property by the
(c) A municipal corporation must prove that they mere lapse or completion of the period. The
acquired the land with their own corporate application for confirmation is mere formality,
funds because land had already been converted, giving rise
to a registrable title. [Director of Lands v. IAC]
(d) Presumption: that land comes from the State
upon the creation of the municipality. All Private Land converted to Property of Public Dominion
lands in the possession of the municipality through abandonment and reclamation – Through the
gradual encroachment or erosion by the ebb and
Except for those acquired with its private funds, flow of the tide, private property may become public
are deemed to be property of public dominion, IF the owner appears to have ABANDONED the land,
held in trust for the State for the benefit of its and permitted it to be totally destroyed so as to
inhabitants. become part of the shore. The land having
disappeared on account of the gradual erosion, and
(e) Congress has paramount power to dispose of having remained submerged until they were
lands of public dominion in a municipality, the reclaimed by the government, they are public land.
latter being a subdivision only for purposes of [Government v. Cabangis]
local administration. [Salas v. Jarencio, (1972)]
BASED ON CONSUMABILITY [NCC 418]
PRIVATE OWNERSHIP Only applies to movables, determined by nature
Can be exercised by the State in its private capacity
or by private persons CONSUMABLE
(1) Movables which cannot be used in a manner
Kinds: appropriate to their nature without their being
(1) Patrimonial property - Property owned by the consumed (e.g. food)
State and its political subdivisions in their private (2) Consumable goods cannot be the subject matter
capacity; all property of the State not included in of a commodatum unless the purpose of the
NCC 420 (on public dominion) [NCC 421-424] contract is not the consumption of the object, as
(2) Property belonging to private persons, either when it is merely for exhibition.
individually or collectively [NCC 425]
(1) Property of private ownership, besides the NON-CONSUMABLE
patrimonial property of the State, provinces, All others not falling under ‘consumable’ e.g. money
cities, and municipalities, consists of all in coin
property belonging to private persons, either
individually or collectively. SUSCEPTIBILITY TO SUBSTITUTION
(2) Refers to all property belonging to private Only applies to movables, determined by the
persons, natural or juridical, either individually intention of the parties.
or collectively (co-owned property) FUNGIBLES
Things which, because of their nature or the will of
Determination (two different views): the parties, are capable of being substituted by
(1) Determined by how the property was used: others of the same kind, not having a distinct
In Province of Zamboanga v. City of Zamboanga individuality
(1968), property was considered patrimonial for
they were not for public use. NON-FUNGIBLES
(1) Things which cannot be substituted for another
(2) Determined by how the property was acquired: (2) If the parties agreed that the same thing be
According to Salas v. Jarencio (1972), the absence returned, it is not fungible
of a title deed to any land, showing that it was
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Real Rights Personal Rights Distinction between forcible entry and unlawful
Generally extinguished by Personal right survives detainer
the loss or destruction of the subject matter (1) Forcible Entry: Lawful possessor deprived through
the thing over which it is FISTS:
exercised (a) FISTS (Force, Intimidation, Strategy, Threats,
Stealth)
It is directed against the It is binding or (b) Prescription: 1 year from dispossession (force,
whole world, giving rise to enforceable only intimidation, threats) or from knowledge of
rd
real actions against 3 against a particular dispossession (strategy, stealth)
persons person giving rise to
personal actions (2) Unlawful Detainer: Possessor refused to vacate
against such debtor upon demand by owner
(a) Legal possession (by permission/ tolerance)
(2) Real action v. Personal action (Rule 4 Sec 1-2) becomes unlawful upon failure to vacate
Real action – actions affecting title to or (b) Prescription of action: 1 year from last notice
possession of real property or any interest therein to vacate
Personal action – all other actions Actions for recovery of possession of movable
property
(3) Action in rem v. Action in personam v. Action Replevin
quasi in rem (1) for manual delivery of property
Action in rem – action against a property, (2) Prescription of Right: 4 years (GF) or 8 years (BF)
judgment binding against the whole world
Requisites for recovery of property [NCC 434]
Action in personam – action against a specific (1) Property must be identified
person, judgment binding against that particular Through a relocation survey and a title properly
person identifying boundaries and location
Action quasi in rem – action against a specific (2) Plaintiff must rely on the strength of his title and
property with respect to a person not on weakness of defendant’s title
(a) Right must be founded on positive title and
REMEDIES
not on lack or insufficiency of defendant’s
(1) Self-help [NCC 429-430] (b) Ei incumbit probatio qui dicit, non qui negat:
(a) The owner may use such force as may be He who asserts, not he who denied must
reasonably necessary to repel or prevent an prove
actual or threatened unlawful physical
invasion or usurpation of his property. LIMITATIONS ON OWNERSHIP
LIMITATIONS ON THE RIGHTS OF OWNERSHIP PROVIDED
(b) Every owner may enclose or fence his land or
BY LAW
tenements by any other means without
detriment to servitudes constituted thereon. General limitations – taxation, eminent domain,
(2) Actions to recover ownership and possession of police power
real property (1) Police Power: Property taken with no
compensation for general welfare
RIGHT TO RECOVER POSSESSION
(a) When any property is condemned or seized by
Immovable Property competent authority in the interest of health,
(1) Accion Reivindicatoria: Recovery of ownership of safety or security, the owner thereof shall not
real property be entitled to compensation, unless he can
(a) Including but not limited to possession show that such condemnation or seizure is
(b) Prescription of Action: 30 years unjustified. [Art. 436, Civil Code]
(2) Accion Publiciana: Recovery of a better right to (b) Requisites: To justify the exercise of police
possess (de jure) power, the following must appear:
(a) Judgment as to who has the better right of (i) The interests of the public generally,
possession require such interference (as distinguished
(b) Also, actions for ejectment not filed within 1 from those of a particular class)
year must be filed as accion publiciana (ii) The means are reasonably necessary for
(c) Prescription: 10 years the accomplishment of a purpose, and not
unduly oppressive
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Summary of Actions:
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Landowner
Ornamental
Builder,
Planter, (b) Sell to BP (unless the value of the land is
Sower considerably more than that of the
[BPS] building or trees)
(c) Rent to S
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Landowner
Landowner
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Case 2: BPS builds, plants, or sows on another’s ;and using his own materials
Landowner BPS and Owner of Material
Good faith Good faith
Landowner has option to: BPS has right to retain (right of retention) the land until
(a) Acquire the improvement after paying indemnity the payment of indemnity
which may be the original cost of improvement OR
increase in value of the whole brought about by the NOTE: During this period BPS is not required to pay
improvement rent.
(b) Sell the land to the BP or collect rent from sower
UNLESS value of land is more than the thing built,
planted or sown or BP shall pay rent fixed by parties
or by the court in case of disagreement.
Case 3: BPS builds, plants or sows on another’s land with materials owned by third persons
Landowner BPS Owner of Material
Good faith Good faith Good faith
(a) Right to acquire improvements (1) Right of retention until necessary (1) Collect value of material
and pay indemnity to BPS; and useful expenses are paid primarily from BPS and
subsidiarily liable to OM (2)Pay value of materials to OM subsidiarily liable for landowner
(b) Has option to: if BPS is insolvent
(1) Sell land to BP except if the (2) Limited right of removal
value of the land is
considerably more
(2) Rent to sower
Good faith Good faith Bad faith
(1) Right to acquire improvements (1) Right of retention until necessary (1) Lose the material without right
and pay indemnity to BPS and useful expenses are paid. to indemnity
(2) Has option to: (2)Keep BPS without indemnity to (2) Must pay for damages to BPS
(1) Sell land to BP except if the OM and collect damages from
value of the land is him
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WITH RESPECT TO MOVABLE PROPERTY (2) Mixture – the union of material where the
Three Types: components lose their identity
(1) Conjunction or Adjunction - process where 2
movables belonging to different owners are Kinds:
attached to each other to form a single object (a) Commixtion – mixture of solids
(b) Confusion – mixture of liquids and gases
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Worker becomes the owner but must indemnify NATURE: QUASI IN REM
owner (who was also in good faith) for the value (a) A suit against a particular person or persons in
of the material respect to the res and the judgment will apply
only to the property in dispute.
Exception: (b) The action to quiet title is characterized as
If material is more valuable than the new thing, proceeding quasi in rem. Technically, it are
owner of material may choose: neither in rem nor in personam. In an action
(a) To take the new thing but must pay for the quasi in rem, an individual is named as defendant.
work or labor However, unlike suits in rem, a quasi in rem
(b) To demand indemnity for the material judgment is conclusive only between the parties.
[Spouses Portic v. Cristobal]
If the owner was in bad faith, maker may
appropriate the new thing without paying the JUSTIFICATIONS FOR QUIETING OF TITLE
owner OR require the owner to pay him the value (1) To prevent future or further litigation on the
of the thing or his work, with right to indemnity ownership of the property
(2) To protect the true title and possession
(2) Person in bad faith (3) To protect the real interest of both parties
General rule: (4) To determine and make known the precise state
(a) Owner may either appropriate the new thing of the title for the guidance of all
to himself without paying the maker OR
(b) Owner may demand value of material plus THE ACTION TO QUIET TITLE DOES NOT APPLY:
damages (1) To questions involving interpretation of
documents
Exception: (2) To mere written or oral assertions of claims
The first option is not available in case the value (a) Unless made in a legal proceeding
of the work, for artistic or scrientific reasons, is (b) Or asserting that an instrument or entry in
considerably more than that of the material plaintiff’s favor is not what it purports to be
(3) To boundary disputes
(3) Person made use of material with consent and (4) To deeds by strangers to the title unless
without objection of owner purporting to convey the property of the plaintiff
Rights shall be determined as though both acted (5) To instruments invalid on their face
in good faith (6) Where the validity of the instrument involves a
pure question of law
REQUIREMENT
Quieting of Title or Interest in REQUISITES OF AN ACTION TO QUIET TITLE
(1) There is a CLOUD on title to real property or any
and Removal or Prevention of interest to real property.
(2) The plaintiff must have legal or equitable title to,
Cloud over Title to or Interest or interest in the real property.
(3) Plaintiff must return the benefits received from
in Real Property the defendant.
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(b) Any record, claim, encumbrance e.g. an affirmatively and within the time provided by the
attachment, lien, inscription, adverse claim, lis statute. Possession is a continuing right as is the
pendens, on a title right to defend such possession. So it has been
(c) Any proceeding e.g. an extrajudicial partition determined that an owner of real property in
of property possession has a continuing right to invoke a
(2) The claim should appear valid or effective and court of equity to remove a cloud that is a
extraneous evidence is needed to prove their continuing menace to his title. Such a menace is
validity or invalidity. compared to a continuing nuisance or trespass
(a) Test: Would the owner of the property in an which is treated as successive nuisances or
action for ejectment brought by the adverse trespasses, not barred by statute until continued
party be required to offer evidence to defeat a without interruption for a length of time sufficient
recovery? to affect a change of title as a matter of law."
(b) As a general rule, a cloud is not created by [Pingol v. CA]
mere verbal or parole assertion of ownership
or an interest in property. (2) When the plaintiff is not in possession of the
(3) Such instrument, etc. is, in truth and in fact, property, the action to quiet title may prescribe.
invalid, ineffective, voidable, or unenforceable, or (a) 10 yrs. – ordinary prescription
has been extinguished or terminated, or has been (b) 30 yrs. – extraordinary prescription
barred by extinctive prescription.
(4) Such instrument, etc. may be prejudicial to the
true owner or possessor.
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THERE ARE IDEAL SHARES DEFINED BUT NOT PHYSICALLY (b) Article 148: between a man and a woman not
IDENTIFIED [NCC 485] capacitated to marry each other
(1) The share of the co-owners, in the benefits as (c) Article 90: if matter is not provided in the FC
well as in the charges, shall be proportional to Chapter on ACP, then rules on co-ownership
their respective interests. will apply
(2) Any stipulation in a contract to the contrary shall
be void. (2) Purchase creating implied trust: co-ownership
(3) The portions belonging to the co-owners in the between persons who agree to purchase property
co-ownership shall be presumed equal, unless If two or more persons agree to purchase
the contrary is proved property and by common consent the legal title is
taken in the name of one of them for the benefit
Each co-owner has absolute control over his ideal of all, a trust is created by force of law in favor of
share the others in proportion to the interest of each
Every co-owner has absolute ownership of his [NCC 1452]
undivided interest in the co-owned property and is
free to alienate, assign or mortgage his interest (3) Easement of Party Wall: co-ownership of part-
except as to purely personal rights. While a co- owners of a party wall (NCC 658)
owner has the right to freely sell and dispose of his
undivided interest, nevertheless, as a co-owner, he (4) Condominium Law: co-ownership of the common
cannot alienate the shares of his other co-owners – areas by holders of units
nemo dat qui non habet. [Acabal v. Acabal] Sec. 6, RA 4726. The Condominium Act. Unless
otherwise expressly provided in the enabling or
Mutual respect among co-owners with regard to use, master deed or the declaration of restrictions, the
enjoyment, and preservation of the things as a whole incidents of a condominium grant are as follows:
(1) The property or thing held pro-indiviso is (a) Unless otherwise, provided, the common
impressed with a fiduciary character: each co- areas are held in common by the holders of
owner becomes a trustee for the benefit of his co- units, in equal shares, one for each unit.
owners and he may not do any act prejudicial to
the interest of his co-owners. CONTRACTS
(2) Until a judicial division is made, the respective By Agreement of Two or More Persons
part of each holder cannot be determined. The Article 494, Civil Code. No co-owner shall be obliged
effects of this would be: to remain in the co-ownership. Each co-owner may
(a) Each co-owner exercises, together with the demand at any time the partition of the thing owned
others, joint ownership over the pro indiviso in common, insofar as his share is concerned.
property, in addition to his use and enjoyment
of the same Nevertheless, an agreement to keep the thing
(b) Each co-owner may enjoy the whole property undivided for a certain period of time, not exceeding
and use it. ten years, shall be valid. This term may be extended
by a new agreement.
Only limitation: a co-owner cannot use or enjoy
the property in a manner that shall injure the A donor or testator may prohibit partition for a
interest of his other co-owners. [Pardell v. period which shall not exceed twenty years.
Bartolome]
Neither shall there be any partition when it is
SOURCES OF CO-OWNERSHIP prohibited by law.
Law, contract, succession, testamentary disposition
or donation inter vivos, fortuitous event or chance, No prescription shall run in favor of a co-owner or co-
and by occupancy heir against his co-owners or co-heirs so long as he
expressly or impliedly recognizes the co-ownership.
LAW
(1) Cohabitation: co-ownership between common (1) Two or more persons may agree to create a co-
law spouses ownership
(2) Note: there is a 10-year term limit for ownership
The Family Code, in the following provisions, by agreement; BUT: Term may be extended by a
made the rules on co-ownership apply new agreement
(a) Article 147: between a man and a woman
capacitated to marry each other
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By the creation of a Universal Partnership when the discovery is made on the property of
Of all present property another, or of the State or any of its subdivisions,
NCC 1778. A partnership of all present property is and by chance, one-half shall be allowed to the
that in which the partners contribute all the property finder.
which actually belongs to them to a common fund,
with the intention of dividing the same among BY OCCUPANCY
themselves, as well as all the profits which they may Harvesting and Fishing: co-ownership by two or more
acquire therewith. persons who have seized a res nullius thing
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(c) May be contradicted and rebutted by evidence does not become effective unless ratified
– to prove that the person who is in by the person in whose name it is
possession does not in fact exercise power or exercised.
control and does not intend to do so.
Possession in the Concept of an Owner, and
DEGREES OF POSSESSION Possession in the Concept of a Holder with the
(1) Mere holding or possession without title and in Ownership Belonging to Another [NCC 525]
violation of the right of the owner (1) Possession in Concept of Holder:
(a) e.g. possession of a thief or usurper of land (a) One who possesses as a mere holder, not in
(b) Here, both the possessor and the public know the concept of owner, acknowledges in
that the possession is wrongful. another a superior right which he believes to
be ownership, whether his belief be right or
(2) Possession with juridical title but not that of wrong.
ownership (b) e.g. tenant, usufructuary, borrower in
(a) e.g. possession of a tenant, depository agent, commodatum.
bailee trustee, lessee, antichretic creditor.
(b) This possession is peaceably acquired. (2) Possession in Concept of Owner:
(c) This degree of possession will never ripen into (a) May be exercised by the owner himself or
full ownership as long as there is no one who claims to be so.
repudiation of concept under which property is (b) When a person claims to be the owner of a
held. thing, whether he believes so or not, acting as
an owner, and performing acts of ownership,
(3) Possession with just title or title sufficient to and he is or may be considered as the owner
transfer ownership, but not from the true owner by those who witness his exercise of
(a) e.g. possession of a vendee from a vendor who proprietary rights, then he is in the possession
pretends to be the owner. of an owner. This is the kind of possession
(b) This degree of possession ripens into full that ripens into ownership under Article 540,
ownership by lapse of time. when such possession is public, peaceful and
uninterrupted [see Art. 1118].
(4) Possession with a just title from the true owner
This is possession that springs from ownership. Effects of Possession in Concept of an Owner
(1) Converted into ownership by the lapse of time
CASES OF POSSESSION necessary for prescription
Possession for Oneself, or Possession Exercised in (2) Possessor can bring all actions necessary to
One’s Own Name and Possession in the Name of protect his possession, availing himself of any
Another [NCC 524] action which an owner can bring, except
(1) In one’s own name – the fact of possession and accion reivindicatoria which is substituted by
the right to such possession is found in the same accion publiciana.
person. (3) He can ask for the inscription of possession in
(2) In the name of another – the one in actual the registry of property
possession is without any right of his own, but is (4) Upon recovering possession from one who
merely an instrument of another in the exercise of has unlawfully deprived him of it, he can
the latter’s possession. demand fruits and damages
(5) He can do on the thing possessed everything
Kinds of possession in the name of another that the law authorizes an owner to do; he
(a) Necessary – arises by operation of law can exercise the right of pre-emption and is
e.g. representatives who exercise possession entitled to the indemnity in case of
in behalf of a conceived child, juridical appropriation.
persons, persons not sui juris and the conjugal
partnership Possession in Good Faith and Possession in Bad Faith
[NCC 526]
(b) Voluntary – effected through the mutual (1) Possessor in good faith – one who is unaware that
consent of the parties there exists a flaw which invalidates his
(i) e.g. agents or administrators appointed acquisition
by the owner or possessor. (a) Good faith – consists in the possessor’s belief
(ii) Third person may also voluntary exercise that the person from whom he received a
possession in the name of another, but it
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BY WHOM MAY POSSESSION BE ACQUIRED [NCC 532] cannot read and write, spendthrifts and those
(1) By the same person under civil interdiction)
(2) By his legal representative (2) Object of possession – things only, not rights.
(3) By his agent (3) Method of acquisition – material occupation;
(4) By any person without any power whatsoever but acquisition by means for which the incapacitated
subject to ratification, without prejudice to person has the capacity, such as acquisition by
proper case of negotiorum gestio [Arts. 2144, 2149, succession, testate or intestate, or by donations
2150] propter nuptias, pure and simple donations
(5) Qualifiedly, minors and incapacitated persons
WHAT DO NOT AFFECT POSSESSION (NCC 537)
By the same person (1) Acts merely tolerated
Elements of personal acquisition: (a) Those which because of neighborliness or
(1) Must have the capacity to acquire possession familiarity, the owner of property allows
(2) Must have the intent to possess another person to do on the property;
(3) The possibility to acquire possession must be (b) Those services or benefits which one’s
present. property can give to another without material
injury or prejudice to the owner, who permits
By his legal representative them out of friendship or courtesy
Requisites of acquisition through another: (c) Acts of little disturbances which a person, in
(1) That the representative or agent has the intention the interest of neighborliness or friendly
to acquire the thing or exercise the right for relations permits others to do on his property,
another, and not for himself although continued for a long time, no right
(2) That the person for whom the thing has been will be acquired by prescription
acquired or the right exercised, has the intention
of possessing such thing or exercising such right Note: Permissive use merely tolerated by the
possessor cannot affect possession and cannot
Note: be the basis of acquisitive prescription.
(a) Bad faith is personal and intransmissible. Its Possession to constitute the foundation of
effects must be suffered only by the person who prescriptive right must be possession under claim
acted in bad faith; his heir should not be saddled of title; it must be adverse. [Cuaycong v.
with the consequences Benedicto]
(b) Good faith can only benefit the person who has it;
and the good faith of the heir cannot erase the (2) Acts executed clandestinely and without the
effects of bad faith of his predecessor. knowledge of the possessor [NCC 1108]
Possession has to be in the concept of an owner,
By any person without any power whatsoever but public, peaceful and uninterrupted. (UPPO)
subject to ratification, without prejudice to proper
case of negotiorum gestio [NCC 2144, 2149, 2150] (3) Acts of violence as long as the possessor objects
(1) Whoever voluntarily takes charge of the agency thereto (i.e. he files a case) [NCC 536]
or management of the business or property of (a) Possession cannot be acquired through force
another, without any power from the latter, is or intimidation.
obliged to continue until the termination of the
affair and its incidents, or to require the person Includes forcibly taking away the property
concerned to substitute him, if the owner is in a from another and also when one occupied the
position to do so. property in the property in the absence of
(2) This juridical relation does not arise in either of another, and repels the latter upon his return
these instances:
(a) When the property or business is not (b) Effect on Possession: Acts mentioned do not
neglected or abandoned; constitute true possession. They do not
(b) If in fact the manager has been tacitly interrupt the period of prescription nor affect
authorized by the owner. the rights to the fruits.
Qualifiedly, minors and incapacitated persons [NCC RULES TO SOLVE CONFLICTS OF POSSESSION (NCC 538)
535] General Rule: Possession cannot be recognized in two
(1) Incapacitated – all those who do not have the different personalities, except in cases of co-
capacity to act (insane, lunatic, deaf-mutes who possession by co-possessors without conflict of
claims of interest.
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(2) Natural and industrial fruits are considered When fruits are insufficient
received from the time they are gathered or There should only be reimbursement of expenses;
severed but each possessor should suffer a proportionate
(3) Civil fruits are deemed to accrue daily and belong reduction due to the insufficiency of the harvest.
to the possessor in good faith in that proportion
REIMBURSEMENT FOR EXPENSES—POSSESSOR IN GOOD
Provision is based on the following reasons of equity FAITH/BAD FAITH (NCC 546-552)
(1) The fruits received are generally used for the Necessary Expenses
consumption and livelihood of the possessor, and (1) Imposed by the thing itself and have no relation
his life and expenses may have been regulated in to the desire or purpose of the possessor
view of such fruits (2) They are the “cost of living” for the thing and
(2) The owner has been negligent in not discovering must be reimbursed to the one who paid them,
or contesting the possession of the possessor; it irrespective of GF or BF.
would be unjust after the possessor has been (a) Only the possessor in GF may retain the thing
thus allowed to rely on the efficacy of the title, to until he has been reimbursed therefor
require him to return the fruits he has received on (3) Those imposed for the preservation of the thing.
the basis of that title. They are not considered improvements; they do
(3) Between the owner, who has abandoned his not increase the value of the thing, but merely
property and left it unproductive, and the prevent them from becoming useless.
possessor, who has contributed to the social
wealth, by the fruits he has produced, the law Useful Expenses
leans toward the latter (1) Incurred to give greater utility or productivity to
the thing
Right of the possessor in good faith (2) e.g. Wall surrounding an estate, an irrigation
Only limited to the fruits of the thing. He must restore system, planting in an uncultivated land, a
the fruits received from the time such good faith fishpond, an elevator in the building, electric
ceased. He has no rights to the objects which do not lighting system
constitute fruits. (3) They are reimbursed only to the possessor in GF
as a compensation or reward for him. Possessor
Legal interruption of possession in good faith in BF cannot recover such expenses
Takes place when an action is filed against him— (4) If the useful improvements can be removed
from the time he learns of the complaint, from the without damage to the principal thing, the
time he is summoned to the trial. possessor in good faith may remove them, unless
the person who recovers the possession refunds
When good faith ceases (NCC 545) the expenses or pays the increase in value which
(1) If at the time the good faith ceases, there should the thing may have acquired by reason thereof
be any natural or industrial fruits, the possessor
shall have a right to a part of the expenses of Expenses for Luxury
cultivation, and to a part of the net harvest, both (1) They do not affect the existence or the substance
in proportion to the time of the possession. of the thing itself, but only the comfort,
(2) The charges divided on the same basis by the two convenience or enjoyment of the possessor.
possessors. (2) They are not the subject of reimbursement,
(a) “Charges” – Those which are incurred, not on because the law does not compensate personal
the thing itself but because of it (e.g. taxes, whims or caprices.
contributions in favor of the government) (3) e.g. Opening of a garden, placing fountains and
(3) The owner of the thing may give the possessor in statues in it, adorning the ceilings with paintings,
good faith the right to finish the cultivation and and the walls with reliefs
gathering of the growing fruits, as an indemnity
for his part of the expenses of cultivation and the Useful Expenses Expenses for Luxury
net proceeds.
(a) The possessor in good faith who refuses to Those which increased
Those which merely
accept this concession shall lose the right to the income derived from
embellished the thing
be indemnified in any other manner. the thing
Result: Increase in the Result: Benefit or
products, either advantage is only for the
absolutely, or because of convenience of definite
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LOSS OR UNLAWFUL DEPRIVATION OF A The finder and the owner shall be obliged, as the
MOVABLE case may be, to reimburse the expenses.
POSSESSION OF MOVABLE ACQUIRED IN GOOD FAITH (IN (6) If the owner should appear in time, he shall be
CONCEPT OF OWNER) IS EQUIVALENT TO TITLE (NCC 559) obliged to pay, as a reward to the finder, one-
(1) Possessor has actual title which is defeasible only tenth of the sum or of the price of the thing found
by true owner. DISTINGUISHED FROM VOIDABLE TITLE (NCC 1506)
(1) Seller of goods with voidable title not avoided at
Requisites of Title the time of the sale: buyer acquires a good title to
(a) Possession in GF the goods, provided he buys them in good faith,
(b) The owner has voluntarily parted with the for value, and without notice of the seller's defect
possession of the thing of title
(c) The possession is in the concept of an owner (2) A movable lost or which the owner has been
unlawfully deprived acquired by a possessor in
(2) Nevertheless, one who has lost any movable or good faith at a public sale - the owner can always
has been unlawfully deprived thereof may recover recover the movable provided he reimburses the
it from the person in possession price paid.
(3) If the current possessor has acquired it in good General Rule: Presumption of just title and cannot be
faith at a public sale, owner must reimburse the obliged to show or prove it (NCC 541)
price paid (1) Basis: Possession is presumed ownership, unless
the contrary is proved. This presumption is prima
PERIOD TO RECOVER (NCC 1140, 1132, 1133) facie and it prevails until contrary is proved.
(1) Actions to recover movables prescribe 8 years (2) Just title – that which is legally sufficient to
from the time the possession thereof is lost, transfer the ownership or the real right to which it
unless the possessor has acquired the ownership relates
by prescription for a lesser period (3) For the purposes of prescription, there is just title
(2) Ownership of movables prescribes through when the adverse claimant came into possession
uninterrupted possession for 4 years in good of the property through one of the modes
faith. recognized by law for the acquisition of
(3) Ownership of personal property also prescribes ownership or other real rights, but the grantor
through uninterrupted possession for 8 years, was not the owner or could not transmit any
without need of any other condition. right. (NCC 1129)
(4) Movables possessed through a crime can never
be acquired through prescription Exception: For the purposes of prescription, just title
must be proved; it is never presumed (NCC 1131)
FINDER OF LOST MOVABLE (NCC 719-720) (1) Possessor may bring all actions necessary to
(1) Whoever finds a movable, which is not a treasure, protect his possession except reivindicatoria
must return it to its previous possessor. (2) May employ self-help under Art. 429
(2) If the previous possessor is unknown, the finder (3) Possessor may ask for inscription of such real
shall immediately deposit it with the mayor of the right of possession in the registry of property
city or municipality where the finding has taken (4) Has right to the fruits and reimbursement of
place. expenses (assuming he is possessor in good faith)
(3) The finding shall be publicly announced by the (5) Upon recovery of possession which he was
mayor for two consecutive weeks in the way he unlawfully deprived of, may demand fruits and
deems best. damages
(4) If the movable cannot be kept without (6) Generally, he can do on the things possessed
deterioration, or without expenses which everything that the law authorizes the owner to
considerably diminish its value, it shall be sold at do until he is ousted by one who has a better
public auction eight days after the publication. right.
(5) Six months from the publication having elapsed (7) Possession in good faith and possession in bad
without the owner having appeared, the thing faith (Art. 528)
found, or its value, shall be awarded to the finder.
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(i) If the usufructuary is authorized to the return of the value or of the things of the
alienate the thing in case of necessity, it same quantity and quality (as if converted
is the usufructuary who determines the into a simple loan)
question of necessity.
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RIGHTS AND OBLIGATIONS OF USUFRUCTUARY ungathered for no fault imputable to him, but
because of malice or an act imputable to the naked
rd
RIGHTS owner or a 3 person, or even due to force majeure
As to Thing and Its Fruits or fortuitous event.
Right to enjoy the property to the same extent as the
owner, but only with respect to its use and the receipt of Right to civil fruits
its fruits. (1) Civil fruits – deemed to accrue daily, and belong
(1) Usufructuary cannot extract products which do to the usufructuary in proportion to the time the
not constitute fruits because he is bound to usufruct may last.
preserve the form and substance of the thing. (2) Whenever a usufruct is constituted on the right to
(2) Usufructuary rights may be transferred, assigned receive a rent or periodical pension, whether in
or otherwise disposed of by the usufructuary. money or in fruits, or in the interest on bonds or
(3) Not exempt from execution and can be sold at securities payable to bearer, each payment due
public auction. shall be considered as the proceeds or fruits of
such right
As to hidden treasure, usufructuary is considered a (3) Whenever it consists in the enjoyment of benefits
stranger without a right to a share, unless he is also the accruing from a participation in any industrial or
finder of the treasure commercial enterprise, the date of the
(1) With respect to hidden treasure which may be distribution of which is not fixed, such benefits
found on the land or tenement, he shall be shall have the same character
considered a stranger (a) In either case they shall be distributed as civil
(2) Hidden treasure belongs to the owner of the fruits
land, building, or other property on which it is
found. Right to enjoy any increase through accessions and
(3) Nevertheless, when the discovery is made on the servitudes, including products of hunting and fishing
property of another, or of the State or any of its
subdivisions, and by chance, one-half thereof Right to lease the thing
shall be allowed to the finder. General rule: The usufructuary may lease the thing to
another but this shall terminate upon the expiration
Right to fruits pending at the beginning of usufruct of the usufruct, saving leases of rural lands, which
Fruits pending at the Fruits pending at the shall be considered as subsisting during the
beginning of the usufruct beginning of the usufruct agricultural year
Belong to the Belong to the naked Exceptions:
usufructuary owner (1) Legal usufructs cannot be leased.
(2) Caucion juratoria (lease would show that the
Without need to The owner shall usufructuary does not need the property badly)
reimburse the expenses to reimburse to the
the owners usufructuary ordinary Effect of the transfer of right:
cultivation expenses (1) The transfer or lease of the usufruct does NOT
from the proceeds of the terminate the relation of the usufructuary with
fruits (not to exceed the the owner
value of the fruits) (2) Death of the transferee does not terminate the
Without prejudice to the Rights of innocent 3
rd usufruct but it terminates upon the death of the
rd
right of 3 persons e.g. if parties should not be usufructuary who made the transfer.
the fruits had been prejudiced.
planted by a possessor in Rules as to Lease
good faith, the pending (1) The property in usufruct may be leased even
crop expenses and without the consent of the owner.
charges shall be prorated (2) The lease should be for the same period as the
between said possessor usufruct.
and the usufructuary (a) EXCEPT: leases of rural lands continues for
the remainder of the agricultural year
(b) A lease executed by the usufructuary before
Fruits already matured at the time of the termination the termination of the usufruct and subsisting
of the usufruct, which ordinarily would have already after the termination of the usufruct must be
been gathered by the usufructuary, may remain
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respected, but the rents for the remaining usufruct, he has the right to do so, and the owner
period will belong to the owner. cannot prevent him from doing so even upon
(c) If the usufructuary has leased the lands or payment of their value.
tenements given in usufruct, and the usufruct (3) This right does not involve an obligation – if the
should expire before the termination of the usufructuary does not wish to exercise it, he
lease, he or his heirs and successors shall cannot be compelled by the owner to remove the
receive only the proportionate share of the improvements.
rent that must be paid by the lessee. (Art. 568, (4) This right to remove improvements can be
Civil Code) enforced only against the owner, not against a
(3) It is the usufructuary and not the naked owner purchaser in good faith to whom a clean title has
who has the right to choose the tenant. been issued.
(a) As corollary to the right of the usufructuary to (5) Usufructuary may set off the improvements
all the rent, to choose the tenant, and to fix against any damage to the property
the amount of the rent, she necessarily has (a) The improvements should have increased the
the right to choose herself as the tenant value of the property, and that the damages
thereof; and, as long as the obligations she are imputable to the usufructuary.
had assumed towards the owner are fulfilled. (b) Increase in value and the amount of damages
(Fabie v. Gutierrez David) are set off against each other.
(4) A lease executed by the owner before the (c) If the damages exceed the increase in value,
creation of the usufruct is not extinguished by the difference should be paid by the
such usufruct. usufructuary as indemnity.
(d) If the increase in value exceeds the damages,
Limitations on the Right to Lease the Property and the improvements are of such nature that
(1) Usufructuary cannot alienate a thing in usufruct they can be removed without injury to the
(a) Cannot alienate or dispose of the objects thing in usufruct, the settlement of the
included in the usufruct difference must be agreed upon by the
(b) Cannot renounce a servitude parties.
(c) Cannot mortgage or pledge a thing (e) If the improvements cannot be removed
(d) EXCEPT: without injury, the excess in value accrues to
(i) When the right of usufruct is converted the owner.
into the right of ownership (6) Registration of improvements – to protect
rd
(ii) When the things are consumable (574); usufructuary against 3 persons
(iii) When the things by their nature are
intended for sale, such as the As to the Legal Right of Usufruct Itself
merchandise in a commercial Right to mortgage right of usufruct
establishment; and (1) The usufructuary may alienate his right of
(iv) When the things, whatever their nature, usufruct, even by a gratuitous title; but all the
are delivered under appraisal as contracts he may enter into as such usufructuary
equivalent to their sale shall terminate upon the expiration of the
(2) Future crops may be sold but such sale would be usufruct [Art. 572]
void if not ratified by the owner. (2) Does not include parental usufruct because of
(a) The buyer’s remedy is to recover from the personal and family considerations.
usufructuary.
(3) Only voluntary usufruct can be alienated. Right to alienate the usufruct except in purely personal
(4) The usufructuary-lessor is liable for the act of the usufructs or when title constituting it prohibits the
substitute. same
(a) A usufructuary who alienates or leases his Parental usufruct is inalienable
right of usufruct shall answer for any damage
which the things in usufruct may suffer OBLIGATIONS
through the fault or negligence of the person At the Beginning of Usufruct or Before Exercising the
who substitutes him. (Art. 590, Civil Code) Usufruct
(1) To make, after notice to the owner or his
Right to improve the thing, but improvement inures legitimate representative, an inventory of all the
to the benefit of the naked owner property, which shall contain an appraisal of the
(1) Usufructuary is not entitled to reimbursement. movables and a description of the condition of
(2) Whenever the usufructuary can remove the the immovables;
improvements without injury to the property in
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(2) To give security, binding himself to fulfill the (iv) Sworn promise
obligations imposed upon him in accordance with (c) A usufructuary under this can neither alienate
this Chapter. his right nor lease the property, for that would
mean that he does not need the dwelling or
Note: These requirements are NOT conditions the implements and furniture.
precedent to the commencement of the right of the
usufructuary but merely to the entry upon the (4) Effect of filing a bond
possession and enjoyment of the property. (a) Retroactivity: upon giving the security, the
usufructuary will be entitled to all the benefits
To Make An Inventory: accruing since the time when he should have
(1) Requisites begun to receive them.
(a) Immovables must be described (5) Effect of failure to give bond (NCC 586)
(b) Movables must be appraised because they are (a) The owner may demand that the immovables
easily lost or deteriorated. be placed under administration;
(2) Concurrence of the owner in the making of the (i) That the movables be sold;
inventory (ii) That the public bonds, instruments of
(3) Expenses for the making of the inventory are credit payable to order or to bearer be
borne by the usufructuary converted into registered certificates or
(4) Inventory may be in a private document, except deposited in a bank or public institution;
when immovables are involved (a public (iii) That the capital or sums in cash and the
rd
instrument is prescribed to affect 3 persons) proceeds of the sale of the movable
(5) Failure to make an inventory does not affect the property be invested in safe securities.
rights of the usufructuary to enjoy the property (b) Owner may, until the usufructuary gives
and its fruits. security, retain in his possession the property
(a) A prima facie presumption arises that the in usufruct as administrator, subject to the
property was received by the usufructuary in obligation to deliver to the usufructuary the
good condition net proceeds, after deducting the sums which
(b) Even if he is already in possession, he may still may be agreed upon or judicially allowed him
be required to make an inventory. for such administration.
(6) Exception to the requirement of inventory
(a) When no one will be injured , the usufructuary During the Usufruct
may be excused from this obligation (1) To take care of the thing like a good father of a
family
To give a bond for the faithful performance of duties as (2) To undertake ordinary repairs
usufructuary: (3) To notify owner of need to undertake
(1) Any kind of sufficient security is allowed, e.g. extraordinary repairs
cash, personal bond, mortgage (4) To pay for annual charges and taxes on the fruits
(2) No bond is required in the following (5) To notify owner of any act detrimental to
(a) No prejudice would result (Art. 585) ownership
(b) Usufruct is reserved by a donor (Art. 584) (6) To shoulder the costs of litigation re usufruct
(i) Gratitude on the donee’s part demands (7) To answer for fault or negligence of alienee,
that the donor be excused from filing the lessee or agent of usufructuary
bond
(c) Title constituting usufruct excused To take care of the thing like a good father of a family
usufructuary (1) When damages are caused to the property by the
(3) If usufructuary takes possession under a caucion fault or negligence of the usufructuary, the naked
juratoria (Art. 587) owner need not wait for the termination of the
(a) The security given may be by a personal bond, usufruct before bringing the action to recover
a pledge, or a mortgage. proper indemnity.
(b) It is only by way of exception that a caucion (2) The bad use of a thing, which causes
juratoria is allowed, and only under the considerable injury, entitles the owner to demand
special circumstances: the delivery and administration of the thing.
(i) Proper court petition (3) The exercise of this remedy does NOT extinguish
(ii) Necessity for delivery of furniture, the usufruct.
implements or house included in the
usufruct
(iii) Approval of the court
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To undertake ordinary repairs (b) The usufructuary who has made the
The usufructuary is obliged to make the ordinary extraordinary repairs necessary for
repairs needed by the thing given in usufruct (NCC preservation is entitled to recover from the
592) owner the increase in value which the
(1) Ordinary repairs: tenement acquired by reason of such works.
(a) Such as are required by the wear and tear due (c) Usufructuary may retain until he is paid.
to the natural use of the thing and are
indispensable for its preservation. To pay for annual charges and taxes on the fruits
(b) Deteriorations or defects arise from the It is well settled that a real tax, being a burden upon
natural use of the thing; the capital, should be paid by the owner of the land
(c) Repairs are necessary for the preservation of and not by a usufructuary. There is no merit in the
the thing. contention of distinguishing public lands into
alienable and indisposable. All properties owned by
(2) The usufructuary is bound to pay only for the the government, without any distinction, are exempt
repairs made during the existence of the usufruct. from taxation. (Board of Assessment Appeals of
(a) If the defects existed already at the time the Zamboanga del Sur v. Samar Mining Company, Inc.)
usufruct began, the obligation to defray the
ordinary repairs falls upon the owner. To notify owner of any act detrimental to ownership
(NCC 601)
(3) If the defects are caused by the ordinary use of
the thing, the usufructuary may exempt himself To shoulder the costs of litigation re usufruct (NCC 602)
from making the repairs by returning to the
owner the fruits received during the time that the To answer for fault or negligence of alienee, lessee or
defects took place. agent of usufructuary (NCC 590)
The usufructuary is made liable for the acts of the
Except: When the ordinary repairs are due to substitute. While the substitute answers to the
defects caused by the fault of the usufructuary usufructuary, the usufructuary answers to the naked
owner.
(4) If the usufructuary fails to make the repairs even
after demand, the owner may make them at the At the Time of the Termination of the Usufruct
expense of the usufructuary To deliver the thing in usufruct to the owner in the
condition in which he has received it, after
To notify owner of need to undertake extraordinary undertaking ordinary repairs
repairs
(1) Extraordinary repairs Exception: abnormal usufruct – return the thing of
(a) Those caused by exceptional circumstances, same kind, quantity and quality; if with appraised
whether or not they are necessary for the value, must return value appraised
preservation of the thing;
(b) Those caused by the natural use of the thing, SPECIAL CASES OF USUFRUCT
but are not necessary for its preservation. USUFRUCT OVER A PENSION OR PERIODICAL INCOME (NCC
570)
(2) General Rule: Naked owner must make the (1) Each payment due shall be considered as the
extraordinary repairs proceeds or fruits of such right
(a) Usufructuary obliged to pay legal interest on (2) Shall be distributed as civil fruits
the amount while usufruct lasts
USUFRUCT OF PROPERTY OWNED IN COMMON (NCC 582)
(3) If the extraordinary repairs are indispensable, and (1) The usufructuary takes the place of the owner as
the naked owner fails to undertake them, the to:
usufructuary may make such repairs (a) Management;
(a) Requisites: (b) Fruits; and
(i) There must be due notification to the (c) Interest
naked owner of the urgency – if it is not (2) Effect of partition:
urgent, there is no obligation to give (a) The right of the usufructuary is not affected by
notice. the division of the property in usufruct among
(ii) The naked owner failed to make them the co-owners.
(iii) The repair is needed for preservation (b) After partition, the usufruct is transferred to
the part allotted to the co-owner
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title in order that the easement may continue established thereon without the consent of both
actively and passively. owners. (NCC 690)
(4) Consent of all co-owners is required to impose an
Unless: at the time the ownership of the two easement on an undivided tenement (NCC 691)
estates is divided, the contrary should be
provided in the title of conveyance of either of RIGHTS AND OBLIGATIONS OF OWNERS OF
them, or the sign aforesaid should be removed DOMINANT AND SERVIENT ESTATES
before the execution of the deed. This provision RIGHT OF DOMINANT ESTATE OWNER
shall also apply in case of the division of a thing (1) To use the easement and exercise all rights
owned in common by two or more persons. (NCC necessary for it (NCC 625, 626)
624) (a) Owner of the dominant estate is granted the
right to use the principal easement, and all
BY LAW (LEGAL EASEMENTS) accessory servitudes
(1) Easements imposed by law have for their object (b) Example: Easement of drawing water carries
either public use or the interest of private persons with it the easement of right of way to the
(NCC 634) place where water is drawn.
(2) These easements may be modified by agreement (c) Limitation: Only for the original immovable
of the interested parties, whenever the law does and the original purpose
not prohibit it or no injury is suffered by a third (2) To do at his expense, all necessary works for the
person (NCC 636) use and preservation of the easement (NCC 627)
Necessity of the works determine extent of such
BY WILL OF THE OWNERS (VOLUNTARY EASEMENTS) works.
Every owner of a tenement or piece of land may (3) In a right of way, to ask for change in width of
establish the easements which he may deem easement sufficient for needs (NCC 651)
suitable and best (NCC 688)
Encarnacion v. Court of Appeals: The Court
BY PRESCRIPTION granted the modification of the easement stating
Continuous and apparent easements may be that under the law, the needs of the dominant
acquired by prescription of 10 years (NCC 620) property ultimately determine the width of the
passage. And these needs may vary from time to
LEGAL EASEMENTS time.
LAW GOVERNING LEGAL EASEMENTS
For public easements OBLIGATIONS OF DOMINANT ESTATE OWNER
(1) Special laws and regulations relating thereto (ex: (1) To use the easement for the benefit of immovable
PD 1067 and PD 705) and in the manner originally established (NCC
(2) By the provisions of Chapter 2, Title VII, Book II, 626)
NCC If established for a particular purpose, the
easement cannot be used for a different one.
For private legal easements However, if established in a general way, without
(1) By agreement of the interested parties whenever specific purpose, the easement can be used for
the law does not prohibit it and no injury is all the needs of the dominant estate.
rd
suffered by a 3 person (2) To notify owner of servient before making repairs
(2) By the provisions of Chapter 2, title VII, Book II and to make repairs in a manner least
inconvenient to servient estate [NCC 627(2)]
VOLUNTARY EASEMENTS
(1) Every owner of a tenement or piece of land may (3) Not to alter easement or render it more
establish thereon the easements which he may burdensome
deem suitable, and in the manner and form (a) Owner of dominant estate may make repairs
which he may deem best (NCC 688) at his expense, but cannot alter the easement
(2) The owner of a thing, the usufruct of which or make it more burdensome. (NCC 627)
belongs to another, may impose, without the (b) Court allowed Central to use the right of way
consent of the usufructuary, any servitudes which to transport the additional sugar. This did not
will not injure the right of usufruct (NCC 689) make the easement more burdensome nor
(3) Whenever the naked ownership belongs to one did it alter it. What is prohibited is extending
person and the beneficial ownership to another, the road or repairing it or depositing
no perpetual voluntary easement may be excavations outside the area. But the
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establish the easement of abutment of a dam, after easement to such owners and to the other
payment of the proper indemnity. irrigators.
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enjoyment of wall, fence, enclosures or hedges, by When existence of exterior sign is presumed (NCC
the owners of adjacent buildings and estates 660)
separated by such objects (1) Whenever in the dividing wall of buildings there is
a window or opening
Nature (2) Whenever the dividing wall is, on one side,
(1) A common wall which separates two estates, straight and plumb on all its facement, and on
built by common agreement at the dividing line the other, it has similar conditions on the upper
such that it occupies a portion of both estates on part, but the lower part slants or projects
equal parts outward
(2) A party wall is a co-ownership (a kind of (3) Whenever the entire wall is built within the
compulsory co-ownership) boundaries of one of the estates
(a) Each owner owns part of the wall but it (4) Whenever the dividing wall bears the burden of
cannot be separated from the other portions the binding beams, floors and roof frame of one
belonging to the others. A party wall has a of the buildings, but not those of the others
special characteristic that makes it more of an (5) Whenever the dividing wall between courtyards,
easement as it is called by law gardens, and tenements is constructed in such a
(b) An owner may use a party wall to the extent way that the coping sheds the water upon only
of the ½ portion on his property. one of the estates
(6) Whenever the dividing wall, being built of
Co-Ownership Party Wall masonry, has stepping stones, which at certain
intervals project from the surface on one side
Before division of shares, Shares of the co-owners only, but not on the other
a co-owner cannot point cannot be physically (7) Whenever lands enclosed by fences or live
to any definite portion of segregated but they can hedges adjoin others which are not enclosed
the property as belonging be physically identified
to him Note: The deposit of earth or debris on one side
alone is an exterior sign that the owner of that
None of the co-owners No such limitation
side is the owner of the ditch or drain. The
may use the community
presumption is an addition to those enumerated
property
in NCC 660.
for his exclusive benefit
because he would be
invading the rights of the
Demolition of building supported by party wall
others
(1) An owner may also renounce his part ownership
In a co-ownership, partial Any owner may free of a party wall if he desires to demolish his
renunciation himself from contributing building supported by the wall.
is allowed to the cost of repairs and (2) He shall bear all the expenses of repairs and work
construction of a party necessary to prevent any damage which the
wall by renouncing all his demolition may cause to the party wall.
rights thereto
Increasing height of party wall
When existence of easement of party wall presumed An owner is given the right to increase the height of a
(1) In dividing walls of adjoining buildings up to the party wall subject to the following conditions:
point of common elevation (1) He must do so at his own expense;
(2) In dividing walls of gardens or yards situated in (2) He must pay for any damage which may be
cities, or towns, or in rural communities caused thereby even if the damage is temporary;
(3) In fences, walls and live hedges dividing rural (3) He must bear the cost of maintaining the portion
lands added;
(4) He must pay the increased cost of preservation of
Note: may be rebutted by a title or exterior sign, the wall
or any other proof showing that the entire wall in
controversy belongs exclusively to one of the Proportional use of party wall
adjoining property-owners The part owners share in the expenses of
maintaining a party wall in proportion to the interest
of each
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LIGHT AND VIEW (ii) The outer line of the openings if they
Definition project
(1) Easement of light (jus luminum) is the right to (iii) The dividing line between the two
admit light from the neighboring estate by virtue properties in cases of oblique view
of the opening of a window or the making of (d) If distances are not complied with:
certain openings (i) Windows are considered unlawful
(2) Easement of view (jus prospectus) is the right to openings
make openings or windows, to enjoy the view (ii) Owner may be ordered by the Court to
through the estate of another and the power to close them
prevent all constructions or works which would (iii) Even if the adjoining owner does not
obstruct such view or make the same difficult. object to the construction of such
(a) Necessarily includes the easement of light structures at first, he cannot be held to
(b) It is possible to have light only without view be in estoppel, except if 10-year period of
acquisitive prescription has passed.
Nature (iv) Does not give rise to prescription
(1) Positive: Opening a window through a party wall (v) Mere opening of the window in violation
When a part owner of a party wall opens a of the distances does not give rise to the
window therein, such act implies the exercise of easement of light and view by
the right of ownership by the use of the entire prescription
thickness of the wall = invasion of the right of the (3) In buildings separated by a public way or alley,
other part owners / violation of the right to not less than 3 meters wide, the distances
proportional use of the party wall. required (2 m, 60 cm) do not apply
(4) If an easement is acquired to have direct views,
(2) Negative: Formal prohibition upon the owner of balconies or belvederes, the owner of the servient
the adjoining land or tenement estate must not build at less than 3 meters from
(a) When a person opens a window on his own the boundary line of the two tenements.
building, he does nothing more than (a) The distances may be stipulated by the
exercise an act of ownership on his property. parties, but should not be less than what is
(i) Does not establish an easement prescribed by the law (2 meters and 60 cm)
(b) Coexistent is the right of the owner of the
adjacent property to build on his own land, Exception to Easement Vs. Direct View
even if such structures cover the window (1) Owners of a wall (not a party wall) adjoining a
(c) If the adjacent owner does not build tenement of another can make openings to admit
structures to obstruct the window, such is light without complying with the distance
considered mere tolerance and NOT a requirements SO LONG AS:
waiver of the right to build. (a) Openings are made at the height of the
(d) An easement is created only when the ceiling joists (horizontal beams) or
owner opens up a window, prohibits or immediately under the ceiling
restrains the adjacent owner from doing (i) Size: 30 cm square
anything, which may tend to cut off or (ii) With iron grating imbedded in the wall
interrupt the light + prescriptive period (iii) With a wire screen
(2) But owner of the adjoining estate can close the
Easement against Direct view opening if:
(1) Acquired by the person who opens the window (a) He acquires part ownership of the party wall
(2) The following structures cannot be built without (b) He constructs a building or raises a wall on his
following the prescribed distances land, unless an easement of light has been
(a) Window, apertures, balconies and other acquired
projections with a direct view upon or towards (3) If requirements are not complied with, the owner
an adjoining land must have a distance of 2 of the adjoining estate may compel the closure of
METERS between the wall and the contiguous the opening.
property. (4) The action to compel the closing of the opening
(b) For structures with a side or oblique view (at may prescribe if the opening is permitted without
an angle from the boundary line), there protest.
should be a distance of 60 centimeters. (a) BUT prescription of the action to compel the
(c) Measured from: closure of the opening DOES NOT MEAN that
(i) The outer line of the wall if the openings the servitude of light and view has been
do not project acquired.
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(b) Period of acquisitive prescription will only (4) Obstructs or interferes with the free passage of
start to run from the time the owner asserting any public highway or street, or any body of
the servitude has forbidden the owner of the water; or
adjoining tenement from doing something he (5) Hinders or impairs the use of property.
could lawfully do.
(c) THUS, although the action to compel the LATERAL AND SUBJACENT SUPPORT
closure might have prescribed, the owner of (1) The proprietor is prohibited from making
the adjoining estate may still build on his own dangerous excavations.
land a structure which might obstruct the (a) No proprietor shall make such excavations
view. upon his land as to deprive any adjacent land
or building of sufficient lateral or subjacent
INTERMEDIATE DISTANCES (NCC 677) support.
NCC 677, in effect, establishes an easement in favor (2) Easement of lateral and subjacent support is
of the State. The general prohibition is dictated by deemed essential to the stability of buildings
the demands of national security. (3) Support is lateral when the supported and
supporting lands are divided by a vertical plane.
The following must comply with the regulations or (4) Support is subjacent when the supported land is
customs of the place: above and the supporting land is beneath it.
(1) Construction of aqueduct, well, sewer, etc. (678)
Constructions which by reason of their nature or MODES OF ACQUIRING EASEMENT
products are dangerous or noxious BY TITLE
Juridical act which gives rise to the servitude (e.g.
(2) Planting of trees (NCC 679) law, donations, contracts or wills)
(a) No trees shall be planted near a tenement or (1) If easement has been acquired but no proof of
piece of land belonging to another except at existence of easement available, and easement is
the distance authorized by the ordinances or one that cannot be acquired by prescription
customs of the place
(b) In the absence of regulations: The defect may be cured by:
(i) At least 2 meters from the dividing line (a) Deed of recognition by owner of servient estate:
of the estates if tall trees are planted By affidavit or a formal deed acknowledging
(ii) At least 50 centimeters if shrubs or the servitude
small trees are planted (b) By final judgment: Owner of the dominant
(c) In case of violation, a landowner shall have estate must file a case in Court to have the
the right to demand the uprooting of the easement declared by proving its existence
plant even if it has grown spontaneously. through other evidence
Branches, roots, and fruits: (2) Existence of an apparent sign considered as title
(1) If the branches of any tree should extend over a Illustration: The presence of 4 windows was
neighboring estate, tenement, garden or yard, considered an apparent sign which created a
the owner of the latter shall have the right to negative easement of light and view (altius non
demand that they be cut-off tollendi) i.e. not to build a structure that will
(2) If it be the roots of a neighboring tree which cover the windows. (Amor v. Florentino)
should penetrate into the land of another, the
latter may cut them off himself within his BY PRESCRIPTION
property Requisites
(3) Fruits naturally falling upon adjacent land belong (1) Easement must be continuous and apparent.
to the owner of said land. (2) Easement must have existed for 10 years.
(3) NO NEED for good faith or just title.
NUISANCE
A nuisance is any act, omission, establishment,
business, condition of property, or anything else EXTINGUISHMENT OF EASEMENTS
which: (1) By merger in the same person of the ownership of
(1) Injures or endangers the health or safety of the dominant and servient estates
others; or (2) By nonuser for ten years
(2) Annoys or offends the senses; or (3) When either or both of the estates fall into such
(3) Shocks, defies or disregards decency or morality; condition that the easement cannot be used
or
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(4) By the expiration of the term or the fulfillment of RENUNCIATION OF THE OWNER OF THE DOMINANT ESTATE
the condition, if the easement is temporary or Must be specific, clear, express (distinguished from
conditional non-user)
(5) By the renunciation of the owner of the dominant
estate; REDEMPTION AGREED UPON BETWEEN THE OWNERS
(6) By the redemption agreed upon between the
owners of the dominant and servient estates OTHER CAUSES NOT MENTIONED IN NCC 631
(1) Annulment and rescission of the title constituting
MERGER the voluntary easement
Must be absolute, perfect and definite, not merely (2) Termination of the right of grantor of the
temporary voluntary easement
(1) Absolute: Ownership of the property must be (3) Abandonment of the servient estate
absolute, thus not applicable to lease, usufruct, (a) Owner of the servient estate gives up
etc. ownership of the easement (e.g. the strip of
(2) Perfect: Merger must not be subject to a land where the right of way is constituted) in
condition favor of the dominant estate.
(3) If the merger is temporary, there is at most a (b) The easement is extinguished because
suspension of the easement, but no ownership is transferred to the dominant
extinguishment. owner, who now owns both properties.
(4) Eminent domain
BY NON-USER FOR 10 YEARS (a) The government’s power to expropriate
(1) Owner of dominant estate does not exercise right property for public use, subject to the
over easement. payment of just compensation.
(2) Inaction, not outright renunciation. (5) Special cause for extinction of legal rights of way;
(3) Due to voluntary abstention by the dominant if right of way no longer necessary
owner, and not due to a fortuitous event (a) NCC 655
(4) Computation of the period (i) If the right of way granted to a
(a) Discontinuous easements: counted from the surrounded estate ceases to be
day they ceased to be used necessary because its owner has joined it
(b) Continuous easements: counted from the day to another abutting on a public road, the
an act adverse to the exercise of the easement owner of the servient estate may
took place demand that the easement be
(i) E.g. in an easement of light and view, extinguished, returning what he may
the erection of works obstructing the have received by way of indemnity. The
servitude would commence the period of interest on the indemnity shall be
prescription deemed to be in payment of rent for the
(5) Use by a co-owner of the dominant estate bars use of the easement.
prescription with respect to the others (ii) The same rule shall be applied in case a
(6) Servitudes not yet exercised cannot be new road is opened giving access to the
extinguished by non-user isolated estate.
(a) An easement must have first been used, (iii) In both cases, the public highway must
before it can be extinguished by inaction. substantially meet the needs of the
dominant estate in order that the
EXTINGUISHMENT BY IMPOSSIBILITY OF USE easement may be extinguished.
(1) Impossibility referred to must render the entire (b) Right of way ceases to be necessary:
easement unusable for all time. (i) Owner of the of the dominant estate has
(2) Impossibility of using the easement due to the joined to another abutting on a public
condition of the tenements (e.g. flooding) only road
suspends the servitude until it can be used again. (ii) A new road is opened giving access to
(3) Except: If the suspension exceeds 10 years, the the isolated estate
easement is deemed extinguished by non-user (c) Requisite: the public highway must
substantially meet the needs of the dominant
EXPIRATION OF THE TERM OR FULFILLMENT OF estate in order that the easement may be
RESOLUTORY CONDITION extinguished
Applicable only to voluntary easements (d) Owner of the servient estate may demand
that the easement be extinguished.
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(d) No right to compensation if property taken or allow thereafter a reasonable time to enable the
destroyed is a nuisance. other to abate the nuisance himself.
(4) Means employed must be reasonable and for any
Action for abatement unnecessary damage or force, the actor will be
(1) The district health officer shall take care that one liable. Right to abate is not greater than the
or all of the remedies against a public nuisance necessity of the case and is limited to the removal
are availed of. of only so much of the objectionable thing as
(2) If a civil action is brought by reason of the actually causes the nuisance.
maintenance of a public nuisance, such action (5) Abatement must be approved by the district
shall be commenced by the city or municipal health officer.
mayor. (6) Property must not be destroyed unless it is
(3) The district health officer shall determine absolutely necessary to do so.
whether or not abatement, without judicial (7) Right must always be exercised with the
proceedings, is the best remedy against a public assistance of local police so as not to disturb the
nuisance. public peace.
(4) A private person may file an action on account of
a public nuisance if it is especially injurious to PRIVATE NUISANCE
himself. Remedies
The remedies against a private nuisance are:
General rule: Individual has no right of action against (1) A civil action; or
a public nuisance. The abatement proceedings must (2) Abatement, without judicial proceedings.
be instituted in the name of the State or its (a) The procedure for extrajudicial abatement of
representatives. a public nuisance by a private person be
followed
Exception: An individual who has suffered some (b) Person extrajudicially abating a nuisance
special damage different from that sustained by the liable for damages if:
general public may maintain a suit in equity for an (i) If he causes unnecessary injury
injunction to abate it, or an action for damages which (ii) If an alleged nuisance is later declared
he has sustained. by the courts to be not a real nuisance
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special status of things, capacity and intention of The owner of a swarm of bees shall have a right to
persons and fulfillment of the requisites of law. pursue them to another’s land, indemnifying the
possessor of the latter for the damage.
Title is every juridical right which gives a means to
the acquisition of real rights but in itself is If the owner has not pursued the swarm, or ceases to
insufficient to produce them. do so within 2 consecutive days, the possessor of the
land may occupy or retain the same.
Ownership is not transferred by contract merely but
by tradition or delivery. Contracts only constitute The 20 days to be counted from their occupation by
titles or rights to transfer or acquisition of ownership, another person. This period having expired, they
while delivery is the mode of accomplishing the shall pertain to him who has caught and kept them.
same.
Occupation of domesticated animals
Mode Title Wild animals are possessed only while they are
under one's control; domesticated or tamed animals
Directly and immediately Serves merely to give the are considered domestic or tame if they retain the
produces a real right occasion for its acquisition habit of returning to the premises of the possessor.
or existence
Pigeons and fish
Cause Means
Pigeons and fish which from their respective
Proximate cause Remote cause breeding places pass to another pertaining to a
Essence of the right Means whereby that different owner shall belong to the latter, provided
which is to be created or “essence” is transmitted they have not been enticed by some artifice or fraud.
transmitted
Hidden treasure
He who by chance discovers hidden treasure in
OCCUPATION
another’s property: ½ shall be allowed to the finder.
Note: Ownership of land cannot be acquired by
occupation
If the finder is a trespasser, he shall not be entitled to
any share of the treasure.
REQUISITES
(a) Corporeal personal property
If the things found be of interest to science or the
(b) Property susceptible of appropriation
arts, the State may acquire them at their just price,
(c) Seizure with intent to appropriate
which shall be divided in conformity with the rule
(d) Res nullius (no owner) or res derelict (abandoned
stated
property)
(e) Observance of conditions prescribed by law
Lost movables; procedure after finding lost movables
Whoever finds a movable, which is not treasure, must
KINDS
return it to its previous possessor.
Of Animals
(1) Wild or feral animals – seizure (hunting/fishing)
If unknown, the finder shall immediately deposit it
in open season by means NOT prohibited
with the mayor of the city or municipality where the
(2) Tamed/domesticated animals – General Rule:
finding has taken place.
belong to the tamer, but upon recovering
freedom, are susceptible to occupation UNLESS
The finding shall be publicly announced by the
claimed within 20days from seizure by another
mayor for two consecutive weeks in the way he
(3) Tame/domestic animals – not acquired by
deems best.
occupation EXCEPT when ABANDONED
If the movable cannot be kept without deterioration,
Of Other Personal Property
or without expenses which considerably diminish its
(1) Abandoned – may be acquired
value, it shall be sold at a public auction eight days
(2) Lost
after the publication.
(3) Hidden treasure – finder gets ½ by occupation;
landowner gets ½ by accession; EXCEPT in CPG
Six months from the publication having elapsed
system, share goes to the partnership
without the owner having appeared, the thing found,
or its value, shall be awarded to the finder. The finder
SPECIAL RULES
Occupation of a swarm of bees
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and the owner shall be obliged, as the case may be, WHAT MAY NOT BE DONATED
to reimburse the expenses. Future property
(1) Donations cannot comprehend future property.
If the owner should appear in time, he shall be (2) “Future property” is understood anything which
obliged to pay, as a reward to the finder, one-tenth the donor cannot dispose of at the time of the
of the sum or of the price of the thing found. donation.
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Causes for revocation of donation propter nuptias: Inter vivos Mortis causa
(1) If the marriage is not celebrated or judicially
declared void ab initio, except donations of the donor the donor, the donation
made in the marriage settlements being effective only after
(2) When the marriage takes place without the the death of donor.
consent of the parents or guardian, as Acceptance during the
required by law; donor’s lifetime is
(3) When the marriage is annulled, and the premature and
donee acted in bad faith; ineffective because there
(4) Upon legal separation, the donee being the can be no contract
guilty spouse; regarding future
(5) If it is with a resolutory condition and the inheritance
condition is complied with;
(6) When the donee has committed an act of As to transfer of ownership for right of disposition
ingratitude as specified by the provisions of Ownership is immediately
the Civil Code on donations in general. transferred. Delivery of Ownership is transferred
Donation between spouses possession is allowed after death
GENERAL RULE: Every donation or grant of after death
gratuitous advantage, direct or indirect, between
the spouses during the marriage shall be void. As to revocation
The prohibition applies to persons living together Irrevocable – may be Revocable upon the
as husband and wife without a valid marriage revoked only for the exclusive will of the donor
reasons provided in CC
EXCEPTION: Moderate gifts which the spouses 760, 764, 765
may give each other on the occasion of any family
As to reduction or suppression
rejoicing.
When it is excessive or When it is excessive or
(3) Donation Mortis Causa (NCC 728) inofficious, being inofficious, it is reduced
(a) Becomes effective upon the death of donor preferred, it is reduced first, or even suppressed
(b) Donor’s death ahead of the donee is a only after the donations
suspensive condition for the existence of the mortis causa had been
donation reduced or exhausted
Characteristics: Note:
(a) Transferor retains ownership and control of (a) NATURE of the act, whether it’s one of
the property while alive disposition or of execution, is CONTROLLING
(b) Transfer is revocable at will before his death to determine whether the donation is mortis
(c) Transfer will be VOID if the transferor should causa or inter vivos.
survive the transferee (b) What is important is the TIME of TRANSFER
of ownership even if transfer of property
Inter Vivos v. Mortis Causa donated may be subject to a condition or a
Inter vivos Mortis causa term.
(c) Whether the donation is inter vivos or mortis
As to formalities causa depends on whether the donor
Executed and accepted Must be in the form of a intended to transfer ownership over the
with formalities will, with all the properties upon the execution of the deed.
prescribed by CC formalities for the validity (Gestopa v. CA; Austria-Magat v. CA)
of wills
As to cause or consideration
As to effectivity (1) Simple - made out of pure liberality or because of
Effective during the Effective after the death the merits of the donee
lifetime of the donor of the donor (2) Remuneratory - made for services already
rendered to the donor
As to acceptance (3) Onerous - imposes a BURDEN inferior in value to
Acceptance must be Acceptance must be property donated
made during the lifetime made after the death of (a) Improper - burden EQUAL in value to property
donated
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(6) Any person who by fraud, violence, intimidation, (b) Donation to husband and wife jointly with
or undue influence should cause the testator to right of accretion UNLESS donor provides
make a will or to change one already made; otherwise
(7) Any person who by the same means prevents
another from making a will, or from revoking one Special Provisions
already made, or who supplants, conceals, or Reservation by donor of power to dispose (in whole or in
alters the latter's will; part) or to encumber property donated (NCC 755)
(8) Any person who falsifies or forges a supposed will (1) The right to dispose of some things donated, or of
of the decedent. some amount which shall be a charge thereon,
may be reserved by the donor
NCC 1027: (2) But if he should die without having made use of
(a) The priest who heard the confession of the this right, the property or amount reserved shall
testator during his last illness, or the minister of belong to the donee.
the gospel who extended spiritual aid to him
during the same period Donation of naked ownership to one donee and
(b) The relatives of such priest or minister of the usufruct to another (NCC 756)
gospel within the fourth degree, the church, (1) May be donated
order, chapter, community, organization, or (2) Provided all the donees are living at the time of
institution to which such priest or minister may the donation
belong
(c) A guardian with respect to testamentary Conventional reversion in favor of donor or other person
dispositions given by a ward in his favor before (NCC 757)
the final accounts of the guardianship have been (1) In favor of donor, for any case and circumstance
approved, even if the testator should die after the (2) In favor of other persons who must be living at
approval thereof; nevertheless, any provision the time of donation
made by the ward in favor of the guardian when (3) If rule is violated, reversion is void but donation is
the latter is his ascendant, descendant, brother, not nullified
sister, or spouse, shall be valid
(d) Any physician, surgeon, nurse, health officer or Payment of donor’s debt (NCC 758)
druggist who took care of the testator during his (1) If expressly stipulated - donee to pay only debts
last illness contracted before the donation unless specified
(e) Individuals, associations and corporations not otherwise. But in no case shall donee be
permitted by law to inherit responsible for debts exceeding value of property
donated unless clearly intended
By reason of prejudice to creditors or heirs (voidable) (2) if there’s no stipulation - donee answerable only
for donor’s debt only in case donation is in fraud
EFFECTS OF DONATION/LIMITATIONS of creditors
In general
(1) Donee may demand actual delivery of thing Illegal or impossible conditions (NCC 1183)
donated (1) Impossible conditions, those contrary to good
(2) Donee is SUBROGATED to rights of donor in the customs or public policy and those prohibited by
property donated law shall annul the obligation which depends
(3) Donor NOT obliged to warrant things donated upon them.
EXCEPT in onerous donations in which case (2) If the obligation is divisible, that part thereof
donor is liable for eviction up to extent of burden which is not affected by the impossible or
(ART. 754) unlawful condition shall be valid.
(4) Donor is liable for EVICTION or HIDDEN (3) The condition not to do an impossible thing shall
DEFECTS in case of BF on his part (ART. 754) be considered as not having been agreed upon.
(5) In donation propter nuptias, donor must
RELEASE property donated from mortgages and Double donations
other encumbrances UNLESS the contrary has Rule: Priority in time, priority in right
been stipulated (1) If movable – one who first took possession in
(6) Donations to several donees jointly – NO right of good faith
accretion EXCEPT: (2) If immovable – one who recorded in registry of
(a) Donor provides otherwise property in good faith
(a) no inscription, one who first took
possession in good faith
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(b) in absence thereof, one who can In fraud of creditors (NCC 759)
present oldest title (1) Donation is always presumed to be in fraud of
creditors, when at the time thereof the donor did
Excessive/Inofficious Donations not reserve sufficient property to pay his debts
A donation in which a person gives or receives more prior to the donation
than what he may give or receive by will (NCC 752) (2) Donee shall be responsible therefor only when
the donation has been made in fraud of creditors
Donation inter vivos, made by a person having no
children or descendants, legitimate or legitimated by VOID DONATIONS (NCC 739-740, 1027)
subsequent marriage, or illegitimate, may be (1) Those made between persons who were guilty of
revoked or reduced by the happening of any of these adultery or concubinage at the time of the
events: donation;
(1) If the donor, after the donation, should have
legitimate or legitimated or illegitimate children, NOTE: The action for declaration of nullity may
even though they be posthumous; be brought by the spouse of the donor or donee;
(2) If the child of the donor, whom the latter believed and the guilt of the donor and donee may be
to be dead when he made the donation, should proved by preponderance of evidence in the same
turn out to be living; action
(3) If the donor subsequently adopt a minor child
(2) Those made between persons found guilty of the
The donation shall be revoked or reduced insofar as same criminal offense, in consideration thereof;
it exceeds the portion that may be freely disposed of
by will, taking into account the whole estate of the (3) Those made to a public officer or his wife,
donor at the time of the birth, appearance or descendants and ascendants, by reason of his
adoption of a child office.
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(4) Mortgages by the donee are valid but may be Effect as to fruits (NCC 768)
discharged subject to reimbursement from the When the donation is revoked for any of the causes
donee stated in NCC 760, or by reason of ingratitude, or
when it is reduced because it is inofficious, donee
Extent of revocation – only to the extent of the shall not return the fruits except from the filing of the
presumptive legitime of the child complaint
(1) If the revocation is based upon noncompliance
Prescription – 4yrs with any of the conditions imposed in the
donation, the donee shall return not only the
Revocation property but also the fruits thereof which he may
Ingratitude have received after having failed to fulfill the
In the following cases: condition
(1) If the donee should commit some offense against
the person, the honor or the property of the
donor, or of his wife or children under his parental
authority;
(2) If the donee imputes to the donor any criminal
offense, or any act involving moral turpitude,
even though he should prove it, unless the crime
or the act has been committed against the donee
himself, his wife or children under his authority;
(3) If he unduly refuses him support when the donee
is legally or morally bound to give support to the
donor.
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If exceeds: inofficious
Donations made to several persons jointly
No accretion – one donee does not get the share of Exception: those given to husband and wife, except
the other donees who did not accept (Article 753) when the donor otherwise provides
Donor
Who are allowed: All persons who may contract (of Who are not allowed:
legal age) and dispose of their property (Article 735)
(1) Guardians and trustees with respect to the
property entrusted to them (Article 736)
Donor’s capacity is determined at the time of the (2) Made between person who are guilty of adultery
making of donation (Article 737) or concubinage (Article 739)
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Revocation/Reduction
Time of Action Transmissibility Effect Liability (Fruits)
Birth, appearance, adoption
Within 4 years from birth, Transmitted to children Property returned/ value Fruits returned from the
legitimation and adoption and descendants upon (if sold)/ redeem filing of the complaint
the death of donor mortgage with right to
recover
Non-compliance with condition
Within 4 years from non- May be transmitted to Property returned, Fruits received after
compliance donor’s heirs and may be alienations and having failed to fulfill
exercised against donee’s mortgages void subject to condition returned
heirs rights of third persons in
good faith
Ingratitude
Within 1 year after Generally not transmitted Property returned, but Fruits received from the
knowledge of the fact to heirs of donor/ donee alienations and filing of the complaint
mortgages effected returned
before the notation of the
complaint for revocation
in the registry of property
subsist
Failure to reserve sufficient means for support
At any time, by the donor Reduced to the extent Donee entitled
or relatives entitled to Not transmissible necessary to provide
support support
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(1) If he undertakes risky operations which the owner owner, and there shall be no right of action between
was not accustomed to embark upon; the owner and third persons. These provisions shall
(2) If he has preferred his own interest to that of the not apply:
owner; (1) If the owner has expressly or tacitly ratified the
(3) If he fails to return the property or business after management, or
demand by the owner; (2) When the contract refers to things pertaining to
(4) If he assumed the management in bad faith. the owner of the business.
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damages to the person who delivered the thing, until Art. 2166. When the person obliged to support an
it is recovered. orphan, or an insane or other indigent person
unjustly refuses to give support to the latter, any
ARTICLE 2160 third person may furnish support to the needy
Art. 2160. He who in good faith accepts an undue individual, with right of reimbursement from the
payment of a thing certain and determinate shall person obliged to give support. The provisions of this
only be responsible for the impairment or loss of the article apply when the father or mother of a child
same or its accessories and accessions insofar as he under eighteen years of age unjustly refuses to
has thereby been benefited. If he has alienated it, he support him.
shall return the price or assign the action to collect
the sum. ARTICLE 2167
Art. 2167. When through an accident or other cause a
ARTICLE 2161 person is injured or becomes seriously ill, and he is
Art. 2161. As regards the reimbursement for treated or helped while he is not in a condition to
improvements and expenses incurred by him who give consent to a contract, he shall be liable to pay
unduly received the thing, the provisions of Title V of for the services of the physician or other person
Book II shall govern. aiding him, unless the service has been rendered out
of pure generosity.
ARTICLE 2162
ARTICLE 2168
Art. 2162. He shall be exempt from the obligation to
restore who, believing in good faith that the payment Art. 2168. When during a fire, flood, storm, or other
was being made of a legitimate and subsisting claim, calamity, property is saved from destruction by
destroyed the document, or allowed the action to another person without the knowledge of the owner,
prescribe, or gave up the pledges, or cancelled the the latter is bound to pay the former just
guaranties for his right. He who paid unduly may compensation.
proceed only against the true debtor or the
guarantors with regard to whom the action is still ARTICLE 2169
effective. Art. 2169. When the government, upon the failure of
any person to comply with health or safety
ARTICLE 2163 regulations concerning property, undertakes to do
Art. 2163. It is presumed that there was a mistake in the necessary work, even over his objection, he shall
the payment if something which had never been due be liable to pay the expenses.
or had already been paid was delivered; but he from
whom the return is claimed may prove that the ARTICLE 2170
delivery was made out of liberality or for any other Art. 2170. When by accident or other fortuitous event,
just cause. movables separately pertaining to two or more
persons are commingled or confused, the rules on
OTHER QUASI-CONTRACTS co-ownership shall be applicable.
ARTICLE 2164
Art. 2164. When, without the knowledge of the ARTICLE 2171
person obliged to give support, it is given by a Art. 2171. The rights and obligations of the finder of
stranger, the latter shall have a right to claim the lost personal property shall be governed by Articles
same from the former, unless it appears that he gave 719 and 720.
it out of piety and without intention of being repaid.
ARTICLE 2172
ARTICLE 2165
Art. 2172. The right of every possessor in good faith to
Art. 2165. When funeral expenses are borne by a reimbursement for necessary and useful expenses is
third person, without the knowledge of those governed by Article 546.
relatives who were obliged to give support to the
deceased, said relatives shall reimburse the third ARTICLE 2173
person, should the latter claim reimbursement.
Art. 2173. When a third person, without the
knowledge of the debtor, pays the debt, the rights of
ARTICLE 2166
the former are governed by Articles 1236 and 1237.
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ARTICLE 2175
Employers shall be liable for the damages caused by
their employees and household helpers acting within
Art. 2175. Any person who is constrained to pay the the scope of their assigned tasks, even though the
taxes of another shall be entitled to reimbursement former are not engaged in any business or industry.
from the latter.
The State is responsible in like manner when it acts
QUASI-DELICTS through a special agent; but not when the damage
ARTICLE 2176 has been caused by the official to whom the task
Art. 2176. Whoever by act or omission causes damage done properly pertains, in which case what is
to another, there being fault or negligence, is obliged provided in Article 2176 shall be applicable.
to pay for the damage done. Such fault or
negligence, if there is no pre-existing contractual Lastly, teachers or heads of establishments of arts
relation between the parties, is called a quasi-delict and trades shall be liable for damages caused by
and is governed by the provisions of this Chapter. their pupils and students or apprentices, so long as
they remain in their custody.
ARTICLE 2177
The responsibility treated of in this article shall cease
Art. 2177. Responsibility for fault or negligence under when the persons herein mentioned prove that they
the preceding article is entirely separate and distinct observed all the diligence of a good father of a family
from the civil liability arising from negligence under to prevent damage.
the Penal Code. But the plaintiff cannot recover
damages twice for the same act or omission of the ARTICLE 2181
defendant.
Art. 2181. Whoever pays for the damage caused by his
dependents or employees may recover from the
ARTICLE 2178
latter what he has paid or delivered in satisfaction of
Art. 2178. The provisions of Articles 1172 to 1174 are the claim.
also applicable to a quasi-delict.
ARTICLE 2182
ARTICLE 2179
Art. 2182. If the minor or insane person causing
Art. 2179. When the plaintiff's own negligence was damage has no parents or guardians, the minor or
the immediate and proximate cause of his injury, he insane person shall be answerable with his own
cannot recover damages. But if his negligence was property in an action against him where a guardian
only contributory, the immediate and proximate ad litem shall be appointed.
cause of the injury being the defendant's lack of due
care, the plaintiff may recover damages, but the ARTICLE 2183
courts shall mitigate the damages to be awarded.
Art. 2183. The possessor of an animal or whoever
may make use of the same is responsible for the
ARTICLE 2180
damage which it may cause, although it may escape
Art. 2180. The obligation imposed by Article 2176 is or be lost. This responsibility shall cease only in case
demandable not only for one's own acts or the damage should come from force majeure or from
omissions, but also for those of persons for whom the fault of the person who has suffered damage.
one is responsible.
ARTICLE 2184
The father and, in case of his death or incapacity, the
mother, are responsible for the damages caused by Art. 2184. In motor vehicle mishaps, the owner is
the minor children who live in their company. solidarily liable with his driver, if the former, who was
in the vehicle, could have, by the use of the due
diligence, prevented the misfortune. It is disputably
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presumed that a driver was negligent, if he had been (1) By the explosion of machinery which has not been
found guilty or reckless driving or violating traffic taken care of with due diligence, and the
regulations at least twice within the next preceding inflammation of explosive substances which have
two months. not been kept in a safe and adequate place;
(2) By excessive smoke, which may be harmful to
If the owner was not in the motor vehicle, the persons or property;
provisions of Article 2180 are applicable. (3) By the falling of trees situated at or near
highways or lanes, if not caused by force majeure;
ARTICLE 2185 (4) By emanations from tubes, canals, sewers or
Art. 2185. Unless there is proof to the contrary, it is deposits of infectious matter, constructed without
presumed that a person driving a motor vehicle has precautions suitable to the place.
been negligent if at the time of the mishap, he was
violating any traffic regulation. ARTICLE 2192
ARTICLE 2186 Art. 2192. If damage referred to in the two preceding
Art. 2186. Every owner of a motor vehicle shall file articles should be the result of any defect in the
with the proper government office a bond executed construction mentioned in Article 1723, the third
by a government-controlled corporation or office, to person suffering damages may proceed only against
answer for damages to third persons. The amount of the engineer or architect or contractor in accordance
the bond and other terms shall be fixed by the with said article, within the period therein fixed.
competent public official.
ARTICLE 2193
ARTICLE 2187 Art. 2193. The head of a family that lives in a building
Art. 2187. Manufacturers and processors of or a part thereof, is responsible for damages caused
foodstuffs, drinks, toilet articles and similar goods by things thrown or falling from the same.
shall be liable for death or injuries caused by any
noxious or harmful substances used, although no ARTICLE 2194
contractual relation exists between them and the Art. 2194. The responsibility of two or more persons
consumers. who are liable for quasi-delict is solidary.
ARTICLE 2188
Art. 2188. There is prima facie presumption of
negligence on the part of the defendant if the death
or injury results from his possession of dangerous
Nature and Effect of
weapons or substances, such as firearms and poison, Obligations
except when the possession or use thereof is
indispensable in his occupation or business.
OBLIGATION TO GIVE
A DETERMINATE OR SPECIFIC THING
ARTICLE 2189
AN INDETERMINATE OR GENERIC THING
Art. 2189. Provinces, cities and municipalities shall be
liable for damages for the death of, or injuries Specific Thing Generic Thing Limited Generic
suffered by, any person by reason of the defective Thing
condition of roads, streets, bridges, public buildings, Particularly Object is When the
and other public works under their control or designated or designated only generic objects
supervision. physically by its class/ are confined to
segregated from genus/ species. a particular
ARTICLE 2190 all other of the Debtor can give class.
Art. 2190. The proprietor of a building or structure is same class; anything of the
responsible for the damages resulting from its total identified by same class as
or partial collapse, if it should be due to the lack of individuality. long as it is of
necessary repairs. the same kind.
Cannot be Can be
ARTICLE 2191 substituted. substituted by
any of the same
Art. 2191. Proprietors shall also be responsible for
class and same
damages caused:
kind.
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in delay from the time performs his the debtor within the prestation.
the obligee judicially or undertaking [Art. 1169, period agreed upon. (3) Creditor refuses the
extrajudicially demands par. 2]. (3) Demand, judicial or performance without
from them the extra-judicial, by the just cause.
fulfillment of their creditor.
obligation [Art. 1169 par.
1]. Effects
(1) The debtor is liable for (1) The responsibility of
Exceptions: damages. the debtor is reduced
ARTICLE 1169 (2) The debtor is liable to fraud and gross
Art. 1169. par 2-3: even if the loss is due negligence.
xxx to fortuitous events. (2) The debtor is
However, the demand by the creditor shall not be (3) For determinate exempted from risk of
necessary in order that delay may exist: objects, the debtor loss of the thing
(1) When the obligation or the law expressly so shall bear the risk of which is borne by the
declares; or loss. creditor.
(2) When from the nature and the circumstances of (3) The expenses
the obligation it appears that the designation of incurred by the
the time when the thing is to be delivered or the debtor for the
service is to be rendered was a controlling motive preservation of the
for the establishment of the contract; (time is of thing after the mora
the essence) or shall be chargeable
(3) When demand would be useless, as when the to the creditor.
obligor has rendered it beyond his power to (4) If the obligation bears
perform. interest, the debtor
does not have to pay
In reciprocal obligations, neither party incurs in delay from the time of
if the other does not comply or is not ready to comply delay.
in a proper manner with what is incumbent upon (5) The creditor is liable
him. From the moment one of the parties fulfills his for damages.
obligation, delay by the other begins. (6) The debtor may
relieve himself of the
obligation by
(1) Mora solvendi- Delay on the part of the debtor to consigning the thing.
fulfill his obligation either to give (ex re) or to do
(ex persona)
FRAUD (DOLO) IN THE PERFORMANCE OF OBLIGATION
No Mora Solvendi in:
Fraud (dolo): deliberate or intentional evasion of the
(a) Negative obligations because delay is
normal fulfillment of an obligation [De Leon, 2003].
impossible [De Leon, 2003]
(b) Natural obligations [Tolentino, 1987]
Waiver of future fraud is void. [Art. 1171]
(2) Mora accipiendi- Delay on the part of the creditor
Past Fraud: Can be subject of a valid waiver by the
to accept the performance of the obligation.
aggrieved party. [De Leon, 2003]
(3) Compensatio morae- Delay of both parties in
reciprocal obligations. Effect: As if there is no
default. Woodhouse vs. Halili (1953):
“...[I]n order that fraud may vitiate consent, it must
be the dolo causante and not merely the dolo
Mora Solvendi Mora Accipiendi incidente, inducement to the making of the contract.
The false representation was used by plaintiff to get
Requisites from defendant a bigger share of net profits. This is
(1) Obligation must be (1) Debtor offers just incidental to the matter in agreement. Because
liquidated, due and performance. despite plaintiff’s deceit, respondent would have still
demandable. (2) Offer must be in entered into the contract.”
(2) Non-performance by compliance with the
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Culpa Contractual Culpa Aquiliana (e) debtor has promised to deliver the same thing to
two or more persons who do not have the same
contract.
interest [Art. 1165 par. 3]
Proof of the existence of The negligence of the (f) the thing is lost due to the obligor’s fraud,
the contract and of its defendant must be negligence, delay or contravention of the tenor of
breach or non-fulfillment proved. the obligation [Art. 1170]
is sufficient prima facie (g) the obligation to deliver a specific thing arises
to warrant recovery. from a crime [Art. 1268]
Proof of diligence in the Proof of diligence in the (h) the object is a generic thing, i.e. the genus never
selection and supervision selection and perishes
of the employees is NOT supervision of the
available as defense. employee is a defense. Requisites for Exemption
(a) The event must be independent of the debtor’s
CONTRAVENTION OF THE TENOR OF OBLIGATION will (fraud or negligence).
Contravention of the tenor of obligation: Violation of (b) The event must be unforeseeable or inevitable.
the terms and conditions stipulated in the obligation, (c) The event renders it impossible for debtor to
which must not be due to a fortuitous event or force fulfill his obligation in a normal manner.
majeure [De Leon, 2003]. (d) The debtor must be free from any participation in
the aggravation of the injury to the creditor
“In any manner contravenes the tenor” means any [Tolentino, 1987; De Leon, 2003].
illicit act, which impairs the strict and faithful (e) It must be the only and sole cause, not merely a
fulfillment of the obligation, or every kind of proximate cause.
defective performance [Tolentino, 1987].
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The condition that payment should be made by (3) The mere intention of the debtor to prevent,
Hermosa as soon as he receives funds from the sale without actually preventing fulfillment is not
of his property in Spain is a mixed condition. The sufficient. Constructive fulfillment will not hold
condition implies that the obligor already decided to when the debtor acts pursuant to a right. There is
sell the house and all that was needed to make the constructive fulfillment when:
obligation demandable is that the sale be (a) Intent of the obligor is to prevent fulfillment;
consummated and the price thereof remitted to the and
islands. There were still other conditions that had to (b) There is actual prevention of compliance.
concur to effect the sale, mainly that of the presence
of a buyer, ready, able and willing to purchase the Principle of Retroactivity in Suspensive Conditions
property under the conditions set by the intestate. Art.1187, par.1: Once the condition is fulfilled, its
effects must logically retroact to the moment when
the essential elements, which gave birth to the
EFFECT OF THE HAPPENING OF SUSPENSIVE CONDITION
obligation have taken place. The condition which is
(ART. 1187); RESOLUTORY CONDITION
imposed is only accidental, not an essential element
ARTICLE 1187
of the obligation. (This is applied only to consensual
Art. 1187. The effects of a conditional obligation to contracts. No application to real contracts which can
give, once the condition has been fulfilled, shall only be perfected by delivery.)
retroact to the day of the constitution of the
obligation. Nevertheless, when the obligation
imposes reciprocal prestations upon the parties, the To Give To Do/Not To Do
fruits and interests during the pendency of the
condition shall be deemed to have been mutually If reciprocal, the fruits and In obligations to do or
compensated. If the obligation is unilateral, the interests shall be deemed not to do, the court shall
debtor shall appropriate the fruits and interests to have been mutually determine the retroactive
received, unless from the nature and circumstances compensated as a matter effect of the condition
of the obligation it should be inferred that the of justice and convenience that has been complied
intention of the person constituting the same was [Art. 1187, par. 1]. with
different. [Art. 1187, par. 2].
If unilateral, the debtor The power of the court
In obligations to do and not to do, the courts shall shall appropriate the includes the
determine, in each case, the retroactive effect of the fruits and interests determination of whether
condition that has been complied with. received, unless from the or not there will be any
nature and circumstance retroactive effect. This
it should be inferred that rule shall likewise apply
Suspensive Condition the intention of the in obligations with a
persons constituting the resolutory condition [Art.
Before Fulfillment After Fulfillment same was different. 1190 par. 3].
The demandability and The obligation arises or Resolutory Condition
acquisition or effectivity of becomes effective.
the rights arising from the The obligor can be Before Fulfillment After Fulfillment
obligation is suspended. compelled to comply Preservation of creditor’s Whatever may have been
Anything paid by mistake with what is incumbent rights (Art. 1188, par. 1) paid or delivered by one
during such time may be upon him. also applies to obligations or both of the parties
recovered. with a resolutory upon the constitution of
condition. the obligation shall have
Doctrine of Constructive Fulfillment of Suspensive to be returned upon the
Conditions fulfillment of the
Art. 1186: The condition shall be deemed fulfilled condition. There is no
when the obligor actually prevented the obligee from return to the status quo.
complying with the condition, and that such However, when the
prevention must have been voluntary or willful in condition is not fulfilled,
character. rights are consolidated
(1) Applicable to suspensive conditions but not to and they become
resolutory conditions. absolute in character.
(2) The article can have no application to an external
contingency which is lawfully within the control of
the obligor.
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(2) If the thing is lost through the fault of the debtor, OBLIGATIONS WITH A PERIOD OR TERM
he shall be obliged to pay damages; it is ARTICLE 1193
understood that the thing is lost when it perishes, Art. 1193. Obligations for whose fulfillment a day
or goes out of commerce, or disappears in such a certain has been fixed, shall be demandable only when
way that its existence is unknown or it cannot be that day comes.
recovered;
Obligations with a resolutory period take effect at once,
(3) When the thing deteriorates without the fault of but terminate upon arrival of the day certain.
the debtor, the impairment is to be borne by the
creditor; A day certain is understood to be that which must
necessarily come, although it may not be known when.
(4) If it deteriorates through the fault of the debtor,
the creditor may choose between the rescission of If the uncertainty consists in whether the day will come
the obligation and its fulfillment, with indemnity or not, the obligation is conditional, and it shall be
for damages in either case; regulated by the rules of the preceding Section.
(5) If the thing is improved by its nature, or by time, Period or Term: Interval of time, which either
the improvement shall inure to the benefit of the suspends demandability or produces
creditor; extinguishment.
(6) If it is improved at the expense of the debtor, he The period must be: future, certain, and possible
shall have no other right than that granted to the [Tolentino, 1987].
usufructuary.
A fortuitous event does not interrupt the running of
ARTICLE 1190 the period. It only relieves the contracting parties
Art. 1190, par. 3. As for the obligations to do and not to from the fulfillment of their respective obligations
do, the provisions of the second paragraph of Article during the period.
1187 shall be observed as regards the effect of the
extinguishment of the obligation. Kinds of Period [Art. 1193]:
(1) Ex die - period with a suspensive effect.
Obligation becomes demandable after the lapse
Without Debtor’s With Debtor’s Fault/Act of the period.
Fault/Act (2) In diem - period with a resolutory effect.
Loss Obligation is demandable at once but is
Obligation is Obligation is converted extinguished upon the lapse of the period.
extinguished. into one of indemnity for
damages. ARTICLE 1180
Deterioration Art. 1180. When the debtor binds himself to pay when
Impairment to be borne Creditor may choose his means permit him to do so, the obligation shall be
by the creditor. between bringing an deemed to be one with a period, subject to the
action for rescission of provisions of Article 1197.
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COMPLIANCE THEREWITH, AND SUCH PERIOD HAS The effect of the notice is to limit the obligation to
ARRIVED. the object or prestation selected. Notice of selection
or choice may be in any form provided it is sufficient
ALTERNATIVE OR FACULTATIVE to make the other party know that the selection has
DIFFERENCE BETWEEN ALTERNATIVE AND FACULTATIVE been made. It can be:
OBLIGATIONS (a) oral
(b) in writing
Alternative Obligations Facultative Obligations (c) tacit
Several objects are due. Only one object is due. (d) any other equivocal means
May be complied with by May be complied with by
delivery of one of the the delivery of another Choice of the debtor when communicated to the
objects or by performance object or by the creditor does not require the latter’s concurrence.
of one of the prestations performance of another
which are alternatively prestation in substitution When the choice is rendered impossible through the
due. of that which is due. creditor’s fault, the debtor may bring an action to
Choice may pertain to Choice pertains only to rescind the contract with damages [Art. 1203].
debtor, creditor, or third the debtor.
person. Obligation is converted into a simple obligation
when:
(a) The person with the right of choice has
Loss/impossibility of all Loss/impossibility of the
communicated his choice [Art. 1201].
object/prestation due to object/prestation due to
(b) Only one prestation is practicable [Art. 1202].
fortuitous event shall fortuitous event is
extinguish the obligation. sufficient to extinguish
Facultative Obligation
The loss/impossibility of the obligation.
Only one prestation has been agreed upon but the
one of the things does not
debtor may render another in substitution [De Leon,
extinguish the obligation.
2003]. Debtor always has the right of choice.
Culpable loss of any of Culpable loss of the
the objects alternatively object which the debtor
Effect of Loss of Substitute
due before the choice is may deliver in
made may give rise to substitution before the
liability on the part of the substitution is effected Before Substitution is After Substitution is
debtor. does not give rise to any Made Made
liability on the part of the If due to bad faith or fraud The loss or deterioration
debtor. of obligor: obligor is liable. of the substitute on
account of the obligor’s
delay, negligence, or
If due to the negligence of fraud, renders the
Alternative Obligations
the obligor: obligor is not obligor liable because
Several prestations are due but the performance of
liable. once the substitution is
one is sufficient [De Leon, 2003].
made, the obligation is
converted into a simple
Right of Choice:
one with the substituted
Art. 1200: Belongs to the debtor, UNLESS:
thing as the object of
(1) when it is expressly granted to the creditor
the obligation.
(2) when it is expressly granted to a third person
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Effect
Indivisibility Solidarity
Creditor cannot be compelled to receive partially the
It refers to the prestation It refers to the legal tie prestation in which the obligation consists; neither
which constitutes the or vinculum, and may the debtor be required to make the partial
object of the obligation. consequently, to the payment [Art. 1248], UNLESS:
subjects or parties of (1) The obligation expressly stipulates the contrary.
the obligation. (2) The different prestations constituting the objects
Plurality of subjects is not Plurality of subjects is of the obligation are subject to different terms
required. indispensable. and conditions.
In case of breach, When there is liability (3) The obligation is in part liquidated and in part
obligation is converted into on the part of the unliquidated.
indemnity for damages debtors because of the
because the indivisibility of breach, the solidarity OBLIGATIONS WITH A PENAL CLAUSE, ARTS.
the obligation is among the debtors 1226, 1228-1230
terminated. remains. ARTICLE 1226
The indivisibility of an obligation does not necessarily Art. 1226. In obligations with a penal clause, the
give rise to solidarity. Nor does solidarity itself imply penalty shall substitute the indemnity for damages
indivisibility [Art. 1211]. and the payment of interests in case of
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There are two persons There is only one person ARTICLE 1288
who are mutually whom the characters of Art. 1288. Neither shall there be compensation if one of
debtors and creditors of the creditor and debtor the debts consists in civil liability arising from a penal
each other in two meet. offense.
separate obligations,
each arising from the ARTICLE 1289
same cause.
Art. 1289. If a person should have against him several
Compensation: debts which are susceptible of compensation, the rules
on the application of payments shall apply to the order
Requisites Effects of the compensation.
(1) Each obligor is bound (1) Effects rise from the
ARTICLE 1290
principally, and at the moment all the
same time a principal requisites concur. Art. 1290. When all the requisites mentioned in Article
creditor of the other (2) Debtor claiming its 1279 are present, compensation takes effect by
(2) Both debts must benefits must prove operation of law, and extinguishes both debts to the
consist in a sum of compensation; once concurrent amount, even though the creditors and
money, or if the things proven, effects debtors are not aware of the compensation.
due are FUNGIBLE, of retroact from the
the same kind & moment when the (2) AGREEMENT [ART. 1282]
quality requisites concurred. Parties agree to compensate their mutual
(3) Both debts are due (3) Both debts are obligations even when some requisite in Art. 1279 is
(4) Debts are liquidated extinguished to the lacking.
and demandable concurrent amount,
(5) There must be no even though the (3) VOLUNTARY [ART. 1282]
retention or creditors and debtors ARTICLE 1282
controversy over either are not aware of the Art. 1282. The parties may agree upon the
of the debts, compensation. compensation of debts which are not yet due.
commenced by third (4) Accessory obligations
persons and are also extinguished. (4) JUDICIAL [ART. 1283]
communicated in due Decreed by court when there is counterclaim;
time to the debtor effective upon final judgment
(6) Compensation is not
prohibited by law
KINDS
ARTICLE 1283
(1) LEGAL COMPENSATION [ARTS. 1286-1290]
Takes place by operation of law Art. 1283. If one of the parties to a suit over an
obligation has a claim for damages against the
ARTICLE 1286
other, the former may set it off by proving his right to
said damages and the amount thereof.
Art. 1286. Compensation takes place by operation of
law, even though the debts may be payable at different
(5) FACULTATIVE
places, but there shall be an indemnity for expenses of
When it can be claimed by one of the parties who,
exchange or transportation to the place of payment.
however, has the right to object to it.
ARTICLE 1287
Compensation which can only be set up at the option
Art. 1287. Compensation shall not be proper when one of a creditor, when legal compensation cannot take
of the debts arises from a depositum or from the place because some legal requisites in favor of the
creditor are lacking. Creditor may renounce his right
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Objective Novation
(1) Change of the subject matter
(2) Change of cause or consideration
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SIMULATION OF CONTRACTS takes place when the (b) Aleatory contract, where one of the contracting
parties do not really want the contract they have parties assumes the risk that the thing will never
executed to produce the legal effects expressed by come into existence, e.g. insurance.
its wordings. It may be absolute or relative [Arts.
1345-1346]. CAUSE
DEFINITION
The essential and impelling reason why a party
Absolute Simulation Relative Simulation assumes an obligation (Manresa). Motive, on the
other hand, is the particular reason for a contracting
No real transaction is Real transaction is hidden. party which does not affect the other.
intended.
Fictitious contract. Disguised contract. REQUISITES:
Void. Bound as to hidden 1. Must exist at the time of the contract is entered
agreement, so long as it into [Arts. 1352, 1409, par. 3].
does not prejudice a third 2. Must be lawful (ibid).
person and is not contrary 3. Must be true or real [Art.1353].
to law, morals, good
customs, public order or CAUSE IN
public policy. Onerous Renumeratory Pure
Contracts Contracts Beneficence
OBJECT The undertaking The service or Mere
DEFINITION: or the promise benefit which is liberality of
The subject matter; the thing, right or service which of the thing or remunerated the
is the subject matter of the obligation arising from service by the benefactor
the contract [Tolentino]. other party
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Lesion or inadequacy Inadequacy of cause shall not The acceptance may be made in the same deed of
of cause – cause is invalidate the contract except donation or in a separate public document, but it
not proportionate to when: (1) there is fraud, shall not take effect unless it is done during the
object mistake, undue influence (2) lifetime of the donor.
when parties intended a
donation If the acceptance is made in a separate instrument,
the donor shall be notified thereof in an authentic
form, and this step shall be noted in both
Liguez v. CA (1957):
instruments.
In making the donation in question, Lopez was not
moved exclusively by the desire to benefit Liguez, but
also to secure her cohabiting with him, so that he PARTNERSHIP WHERE REAL PROPERTY IS CONTRIBUTED
could gratify his sexual impulses. The donation was (ARTS. 1771, 1773)
an onerous transaction and clearly predicated upon ARTICLE 1771
an illicit causa. Art. 1771. A partnership may be constituted in any
form, except where immovable property or real rights
are contributed thereto, in which case a public
instrument shall be necessary.
Kinds of Contracts ARTICLE 1773
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GENERALLY, form is not required. It is enough that The necessity for the public document in the
there be consent, subject matter and cause contracts enumerated under this article is only for
(Art.1318). convenience, not for validity or enforceability.
EXCEPTIONS:
(1) Formal contracts and Fule v. Court of Appeals (1998):
(2) Real contracts Article 1358, which requires the embodiment of
certain contracts in a public instrument, is only for
When Form is Important: convenience, and registration of the instrument only
(a) For Validity – e.g. for formal or solemn contracts adversely affects third parties.
(b) For Enforceability – e.g. for agreements
enumerated under the Statute of Frauds
(Art.1403)
(c) For Convenience – e.g. for contracts enumerated
in Art. 1385 Defective Contracts
ARTICLE 1357 FOUR KINDS OF DEFECTIVE CONTRACTS
Art. 1357. If the law requires a document or other (PARAS):
special form, as in the acts and contracts (a) RESCISSIBLE: Valid until rescinded. All essential
enumerated in the following article, the contracting requisites of a contract exist but there is injury or
parties may compel each other to observe that form, damage to one of the parties or to third persons –
once the contract has been perfected. This right may external or extrinsic defect consisting of an
be exercised simultaneously with the action upon the economic damage or lesion.
contract. (1279a) (b) VOIDABLE: Valid until annulled, unless ratified.
Defect is more or less intrinsic, as in the case of
This article applies only when form is needed for vitiated consent.
convenience, not for validity or enforceability. Thus, (c) UNENFORCEABLE: Cannot be sued upon or
before the contracting parties may be compelled to enforced, unless it is ratified. Intermediate ground
execute the needed form, it is essential that the between voidable and void contracts.
contract be: (1) perfected or valid (Art.1357) and (2) (d) VOID: No legal effect at all and cannot be ratified
enforceable under the Statute of Frauds (Art.1356). or validated.
RESCISSIBLE CONTRACTS (ART. 1381)
ARTICLE 1358 ARTICLE 1381
Art. 1358. The following must appear in a public Art. 1381. The following contracts are rescissible:
document: Those which are entered into by guardians whenever
(1) Acts and contracts which have for their object the the wards whom they represent suffer lesion by more
creation, transmission, modification or than one-fourth of the value of the things which are
extinguishment of real rights over immovable the object thereof;
property; sales of real property or of an interest Those agreed upon in representation of absentees, if
therein a governed by Articles 1403, No. 2, and 1405; the latter suffer the lesion stated in the preceding
(2) The cession, repudiation or renunciation of number;
hereditary rights or of those of the conjugal Those undertaken in fraud of creditors when the
partnership of gains; latter cannot in any other manner collect the claims
(3) The power to administer property, or any other due them;
power which has for its object an act appearing or Those which refer to things under litigation if they
which should appear in a public document, or should have been entered into by the defendant without the
prejudice a third person; knowledge and approval of the litigants or of
(4) The cession of actions or rights proceeding from competent judicial authority;
an act appearing in a public document. All other contracts specially declared by law to be
All other contracts where the amount involved subject to rescission.
exceeds five hundred pesos must appear in writing,
even a private one. But sales of goods, chattels or ARTICLE 1382
things in action are governed by Articles, 1403, No. 2 Art. 1382. Payments made in a state of insolvency for
and 1405. obligations to whose fulfillment the debtor could not
be compelled at the time they were effected, are also
rescissible.
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(1) Those entered into in the name of another person General Rules of Application of Statute of Frauds
by one who has been given no authority or legal (a) The Statute of Frauds is a Rule of Exclusion, i.e.
representation, or who has acted beyond his oral evidence might be relevant to the
powers; agreements enumerated therein and might
(2) Those that do not comply with the Statute of therefore be admissible were it not for the fact
Frauds as set forth in this number. In the that the law excludes said oral evidence.
following cases an agreement hereafter made (b) The defense of the Statute of Frauds may be
shall be unenforceable by action, unless the waived [Art.1405].
same, or some note or memorandum, thereof, be (c) Applies only to executory contracts, not partially
in writing, and subscribed by the party charged, or completely executed (consummated)
or by his agent; evidence, therefore, of the contracts.
agreement cannot be received without the (d) The Statute of Frauds cannot apply if the action is
writing, or a secondary evidence of its contents: neither for damages because of the violation of an
(a) An agreement that by its terms is not to be agreement nor for the specific performance of said
performed within a year from the making agreement [Lim vs. Lim, 10 Phil 635].
thereof; (e) The Statute of Frauds is exclusive, that is, it
(b) A special promise to answer for the debt, applies only to the agreements or contracts
default, or miscarriage of another; enumerated therein [See Quintos v. Morata
(c) An agreement made in consideration of (1930)].
marriage, other than a mutual promise to (f) The Statute of Frauds is a personal defense, that
marry; is, a contract infringing it cannot be assailed by
(d) An agreement for the sale of goods, chattels third persons [Art.1408].
or things in action, at a price not less than five (g) Contracts infringing the Statute of Frauds are not
hundred pesos, unless the buyer accept and void, they are merely unenforceable [Art.1403].
receive part of such goods and chattels, or the (h) The Statute of Frauds does not determine the
evidences, or some of them, of such things in credibility or weight of evidence. It merely
action or pay at the time some part of the concerns itself with the admissibility thereof.
purchase money; but when a sale is made by (i) The Statute of Frauds does not apply if it is
auction and entry is made by the auctioneer in claimed that the contract does not express the
his sales book, at the time of the sale, of the true agreement of the parties. As long as the true
amount and kind of property sold, terms of or real agreement is not covered by the Statute of
sale, price, names of the purchasers and Frauds, it is provable by oral evidence [Cayuga v.
person on whose account the sale is made, it Santos].
is a sufficient memorandum;
(e) An agreement of the leasing for a longer VOID CONTRACTS
period than one year, or for the sale of real ARTICLE 1409
property or of an interest therein; Art. 1409. The following contracts are inexistent and
(f) A representation as to the credit of a third void from the beginning:
person. Those whose cause, object or purpose is contrary to
(3) Those where both parties are incapable of giving law, morals, good customs, public order or public
consent to a contract. policy;
Those which are absolutely simulated or fictitious;
Definition of Unenforceable Contracts Those whose cause or object did not exist at the time
Those that cannot be enforced in court or sued upon of the transaction;
by reason of certain defects provided by law until and Those whose object is outside the commerce of men;
unless they are ratified according to law [De Leon]. Those which contemplate an impossible service;
Those where the intention of the parties relative to
Kinds of Unenforceable Contracts: the principal object of the contract cannot be
(1) Unauthorized contracts – those entered into by ascertained;
one who has no authority or legal representation Those expressly prohibited or declared void by law.
or who has acted beyond his powers [Art.1403, These contracts cannot be ratified. Neither can the
par.1]. right to set up the defense of illegality be waived.
(2) Those which did not comply with the Statute of
Frauds [Art.1403, par.2]. Definition of Void Contract [De Leon]
(3) Those where both parties are incapable of giving Those which, because of certain defects, generally
consent to a contract [Art.1403, par.3]. produce no effect at all. They are considered as
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Effects of Contracts
STATUTORY BASIS
ARTICLE 1311
Art. 1311. Contracts take effect only between the
parties, their assigns and heirs, except in case where
the rights and obligations arising from the contract
are not transmissible by their nature, or by
stipulation or by provision of law. The heir is not
liable beyond the value of the property he received
from the decedent.
EXCEPTIONS
(a) Obligations arising from the contract are not
transmissible by nature, stipulation or law
[Art.1311].
(b) Where there is a stipulation pour autrui.
STIPULATION POUR AUTRUI (definition):
stipulation in favor of a third person conferring
clear and deliberate favor which is merely art of
the contract entered into by parties, neither of
whom acted as agent of third person.
(c) Third person induces another to violate his
contract (Art. 1314).
(d) Where third persons may be adversely affected by
a contract where they did not participate [see
Arts. 1312, 2150, 2151].
(e) Where law authorizes creditor to sue on a
contract entered into by his debtor [accion
directa, Art. 1313]
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OBLIGATIONS CREATED – ART. 1165 Equatorial Realty Dev. v. Mayfair Theater (2001): Sale
Art. 1165. When what is to be delivered is a is merely title that creates the obligation on the part
determinate thing, the creditor, in addition to the of the seller to transfer ownership and deliver
right granted him by Article 1170, may compel the possession, but on its own, sale is not a mode that
debtor to make the delivery. transfers ownership.
If the thing is indeterminate or generic, he may ask SALE DISTINGUISHED FROM OTHER
that the obligation be complied with at the expense CONTRACTS
DONATION
of the debtor.
Sale Donation
If the obligor delays, or has promised to deliver the Onerous Gratuitous
same thing to two or more persons who do not have
the same interest, he shall be responsible for any Perfected by mere Must comply with the
fortuitous event until he has effected the delivery. consent formalities required by
law. [Art 745, CC]
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When the price of the contract of sale is simulated, There is a novation of the contract of loan into a
the sale may be void but the act may be shown to contract of sale when the creditor agrees to accept a
have been in reality a donation or some other thing in payment of the debt. Hence, if the thing
contract. [Art.1471, CC] given in payment turns out to belong to another, the
creditor’s remedy should be governed by the law on
BARTER sales, not loan. [Baviera]
Sale Barter
Bilateral promise to buy and sell [Asked in 80, 91]
Consideration is price in Consideration is A promise to buy and sell a determinate thing for a
money or its equivalent another thing price certain is reciprocally demandable. [Art 479,
CC]
Barter is a contract where one of the parties binds
himself to give one thing in consideration of the Like a sale, the thing must be determinate and the
other’s promise to give another thing [Art.1638, CC] price, certain.
If consideration consists partly in money and partly in CONTRACT OF SALE/CONTRACT TO SELL
another thing, the intention of the parties determines
whether the contract is one of sale or barter: Contract of Sale Contract to sell
If manifest intention is not clear: Barter when Ownership is Ownership is only
the value of thing is more than the amount of transferred upon transferred upon full
money or its equivalent; otherwise, sale. delivery payment of price
[Art.1468] Non-payment is a Full payment is a
resolutory condition positive suspensive
condition, hence non-
CONTRACT FOR A PIECE OF WORK payment would not
Contract for a Piece of give rise to the
Sale
Work obligation to transfer
Goods are Goods are ownership
manufactured or manufactured for
procured in the ordinary customer upon his Conditional Contract of
course of business special order Contract to sell
Sale
For the general market, For a specific Sale is already No perfected sale yet
whether on hand or not customer perfected
A subsequent buyer is A subsequent buyer is
The fact that the object were made by the seller only presumed to be a buyer presumed to be a
when customers placed their orders, does not alter in bad faith buyer in good faith
the nature of the contract of sale, for it only accepted
such orders as called for the employment of such
materials as it ordinarily manufactured or was in a
position habitually to manufacture such. [Celestino
Co & Co vs. Collector, 1956] Parties to a Contract of Sale
When each product or system executed is always
CAPACITY OF PARTIES – ARTS. 1489-1492
UNIQUE and could not mass-produce the product
All persons who have capacity to enter into
because of its very nature, such is a contract for a obligations may enter into a contract of sale [Art
piece of work. [Commissioner vs. Engineering
1489, CC]
Equipment and Supply Co., 1975]
KINDS OF INCAPACITY
DACION EN PAGO
(1) Absolute incapacity
Sale Dacion en pago (2) Relative incapacity
No pre-existing debt Pre-existing debt (3) Specific incapacity/Special disqualifications
Creates an obligation Extinguishes the
obligation (mode of ABSOLUTE INCAPACITY – ARTS. 1327, 1397, 1399
payment)
Price is more freely Price is value of the (MIND-CI) [ART. 1327, CC]
agreed upon, fixed by thing given (1) Minors
the parties (2) Insane or Demented
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Emptio Rei Speratei Emptio Spei (4) Things Subject to Resolutory Condition
Sale of things subject to a resolutory condition
In case of doubt, the presumption is in favor of may be the object of a contract of sale. [Art 1465,
emptio rei speratae since it is more in keeping CC]
with the commutative character of the contract.
Examples:
DETERMINATE OR DETERMINABLE
(a) things acquired under legal or conventional
A thing is DETERMINATE when it is particularly right of redemption; or
designated or physically segregated from all others (b) subject to reserva troncal,
of the same class. [Art 1460, CC]
(5) Quantity of Subject Matter not determinate
A thing is DETERMINABLE when it is capable of
The fact that the quantity is not determinate shall
being made determinate at the time the contract
not be an obstacle to the existence of the
was entered into without the necessity of a new or
contract provided it is possible to determine the
further agreement between the parties. [Art 1460, CC]
same, without the need of a new contract
between the parties. [Art. 1349, CC]
Failure to state the exact location of the land does
not make the subject matter indeterminate, so long
as it can be located. [Camacho v CA, 2007]
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(a) In execution sale, the buyer merely steps into When buyer has an intention to pay and the seller
the shoes of the judgment debtor [Rule 39, has an expectation to receive the price
sec. 33, ROC] (a) If simulated: Sale is VOID; BUT act may be
shown to have been a donation or some other
(5) When goods are purchased in Merchant’s store, act or contract. [Art 1471, CC]
Fair, or Market [Art 1505, CC] (b) An admission of non-payment of any centavo
(a) The policy of the law has always been that in exchange of a property in a contract of sale
where the rights and interest of the vendor renders the sale VOID. [Labagala vs. Santiago,
clash with that of an innocent buyer for value, 2001]
the latter must be protected. [Sun Brothers (c) If Price is false – when the real consideration
and Co. vs. Velasco, 1958] is not the price stated in the contract:
i. Sale is void
SALE BY A PERSON HAVING A VOIDABLE TITLE ii. UNLESS proved to be founded on another
– ARTS. 1506, 559 true and lawful price [Art 1353, CC]
(1) True owner may recover the thing when the ff.
requisites concur: HOW PRICE IS DETERMINED
(a) Subject matter is movable (1) Fixed by agreement of the parties
(b) Owner has either lost the thing or has been (a) Fixing of price cannot be left to the discretion
unlawfully deprived. [Art 559, CC] of one of the parties
(b) BUT if such is accepted by the other, sale is
(2) Reimbursement is necessary before owner can perfected. [Art 1473, CC]
recover when: (2) Determination is left to the judgment of a
(a) Buyer acted in good faith specified person
(b) Acquired at a public auction [Art 559, CC] (a) If unable or unwilling: Sale is inefficacious
UNLESS parties subsequently agree about the
(3) Recovery no longer possible when: price.
(a) Buyer in good faith (b) If in bad faith/by mistake: Courts may fix price
(b) Acquired it at a merchant’s store, fair or (c) If 3rd person is prevented from fixing price by
market. [Art 1506, CC] fault of seller or buyer: Innocent party may
avail of remedies.
(3) The price is made in reference to another thing, or
when the price fixed is the price of the commodity
Price on a definite day, or in a particular exchange or
market, OR when the amount fixed is above or
below the price on such day, exchange or market.
MEANING OF PRICE – ARTS. 1469-1474 [Art 1472, CC]
Price signifies the sum stipulated as the equivalent
of the thing sold and also every incident taken into INADEQUACY OF PRICE – ARTS. 1355, 1470
consideration for the fixing of the price put to the General Rule: Does not affect a contract of sale. [Art.
debit of the buyer and agreed to by him [Inchausti v. 1470, CC]
Cromwell, 1911]
The stipulation in a contract of sale which states that
REQUISITES FOR A VALID PRICE the consideration is “P1 and other valuable
(Ce-MoRe) considerations” does not make the contract void.
(1) Certain or ascertainable at the time of perfection Gross inadequacy of price does not affect the
(2) In Money or its equivalent contract of sale except that it may indicate a defect
(a) Example of “equivalent”: Letters of credit in consent. [Bagnas v. C.A., 1989]
(b) If price is partly in money and partly in another
thing: Determine manifest intention of the Exceptions:
parties to see whether it was barter or sale. (1) It may indicate a defect in consent such as fraud,
[Art 1468,CC] mistake, or undue influence
(c) If intention does not clearly appear, it shall be (2) It may indicate that the contract was in reality a
considered a barter if the value of the thing donation or some other act or contract
exceed the amount of money or its equivalent. (3) Inadequacy would make the contract of sale
[Art 1468,CC] rescissible where a contract was entered into by
(3) Real the guardian of a ward or a representative of an
absentee, without the court’s approval, and the
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owner suffers lesion by more than ¼ of the value (a) The contract of sale is perfected at the
of the thing sold. [Art 1381 (1) (2), CC] moment there is meeting of the minds upon
the thing which is the object of the contract
WHEN NO PRICE AGREED – ART. 1474 and upon the price. [Art. 1475, par.1, CC]
(1) Sale is inefficacious [Art. 1474, CC] (b) From that moment, the parties may
(2) But if the thing or part thereof has been delivered reciprocally demand performance, subject to
and appropriated by the buyer, he must pay a the provisions of law governing the form of
reasonable price therefor. contracts. [Art. 1475, par. 2, CC]
(a) What is a reasonable price is a question of fact (c) A private instrument signed by the defendant
dependent on the circumstances of each reciting that he bought from the plaintiff a
particular case. [Art 1474, CC] property at a specific address for a specific
(b) The reasonableness of a price may be price to be paid as soon as a bill of sale is
determined on the basis of a company’s signed is not a mere draft but a perfected
balance sheet showing the book value or fair agreement and hence, obligatory, even if there
market value of its shares. [Philippine Free was no statement as to area or price per
Press vs. CA, 2005] meter. [Goyena v. Tambunting, 1902]
General Rule: Offer may be withdrawn at any time
MANNER OF PAYMENT MUST BE AGREED UPON without even communicating such withdrawal to the
Disagreement on the manner of payment is interested buyer.
tantamount to a failure to agree on the price. [Toyota
Shaw vs. CA, 1995] Exception: When the offerer has allowed the offeree a
certain period to accept, the offer may be withdrawn
EARNEST MONEY VS. OPTION MONEY – ART. at any time before acceptance by communicating
1482 such withdrawal. [Art 1324, CC]
Earnest Money Definition: paid in advance of the
purchase price agreed upon by the parties in a Exception to the exception: Cannot be withdrawn
contract of sale, given by the buyer to the seller, to within a certain period if offer is founded upon a
bind the latter to the bargain. [Asked in 93, 02] consideration. [Art 1324 and 1479, CC]
Option Money vs. Earnest Money [Limson vs. CA, (2) OPTION CONTRACT – ARTS. 1479, 1324
2001] (a) Definition
Option Money Earnest Money i. An accepted unilateral promise to buy or
sell supported by a consideration distinct
Separate and distinct Part of purchase price from the price (Art 1479, CC)
consideration from the [Art 1482, CC] ii. An option contract is a privilege existing in
purchase price one person, for which he had paid a
Given when sale is not Given only when there consideration, which gives him the right to
yet perfected is already a sale buy, for example, certain merchandise or
When given, the would- When given, the buyer certain specified property, if he chooses, at
be-buyer is not required is bound to pay the any time within the agreed period, at a fixed
to buy, but may even balance price. [De la Cavada vs. Diaz, 1918]
forfeit it depending on iii. An option is not of itself a purchase, but
the terms of the option merely secures the privilege to buy.
Grantee of option is still Buyer manifests his iv. A consideration for an optional contract is
undecided whether or earnest desire to buy just as important as the consideration for
not to buy or sell the the property any other kind of contract. If there was no
property [Baviera] consideration for the option, then it cannot
be enforced any more than any other
contract where no consideration exists.
[Baviera]
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st
Sale Option Contract Option Contract Right of 1 Refusal
on the part of the buy or sell only a right to match
option-holder, aside the 1st offer to buy
from the consideration should the grantor
for the offer decide to sell
Sale of property Sale of right to
purchase (4) MUTUAL PROMISE TO BUY AND SELL – ART. 1479
A promise to buy and sell a determinate thing for a
(3) RIGHT OF FIRST REFUSAL price certain is reciprocally demandable. [Art 1479]
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(2) Sale of realty by an agent WHEN DELIVERY DOES NOT TRANSFER TITLE
Agent’s authority must be in writing, otherwise the (1) SALE ON APPROVAL, TRIAL, OR SATISFACTION
sale is void [Art.1874, CC] General Rule: Title remains with the seller
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and Industrial Corp. v. CA, 1997; Sabio v. The (3) 2 or more buyers with conflicting interests at
International Corporate Bank, Inc., 2001] odds over the rightful ownership of the thing sold;
(4) Same seller
(c) Tradition Longa Manu (Long Hand)
i. Delivery of thing by mere agreement. RULES GOVERNING SALE OF MOVABLES, IMMOVABLES AND
ii. Example: Seller points to the property UNREGISTERED LANDS
without actually transferring physical
possession thereof. (1) Sale of Movables
iii. When an employer assigned all its rights Ownership shall be transferred to the person who
and title to all surplus property salvaged by may have first taken possession in good faith.
the contractor, tradition longa manu takes
place. Delivery is upon the moment a thing (2) Immovables
is salvaged. [Board of Liquidators v. Floro, (a) Ownership belongs to the person who:
1960] i. In good faith first recorded it in the Registry
of Property; OR
(d) Tradition Brevi Manu (Short Hand) ii. If there is no inscription, ownership passes
MOVABLE is delivered when the buyer had the to the person who in good faith was first in
thing already in his possession before the sale possession; OR
took place, not as owner but as lessee, iii.In the absence thereof, to the person who
borrower, or depositary. presents the oldest title, PROVIDED there is
good faith.
(e) Tradition Constitutum Possessorium
Seller continues to be in possession of the “Oldest Title” – any public document showing
property sold, by virtue of a lease contract acquisition of the land in good faith. To
agreement with the vendee. constitute “title,” the transmission of
ownership must appear in a public document
(f) Delivery to a Common Carrier [Art. 1358 (1)]
General Rule: Delivery to the courier or carrier
is tantamount to delivery to buyer. Examples: Deed of Sale, Deed of Donation,
Exceptions Deed of Trust
i. Seller reserved title by the form of the bill of
lading, with intent to remain the owner, not (b) Registration includes any entry made in the
merely for the purpose of securing payment, Primary Entry Book of the registry, including
OR both registration in its ordinary and strict
ii. Contrary intention appears in the contract sense and cancellation, annotation, and even
(i.e. seller is required to deliver goods to marginal notes. [Cheng v. Genato, 1998]
buyer at the point of destination) i. Pencilled entries on the title are not
iii. F.O.B. (Free on Board or Freight on Board): considered registration [AFPMBAI v. Court of
When seller bears the expenses of Appeals, 1999].
transportation up to the F.O.B. point.
iv. C.I.F. (Cost, Insurance, Freight): Price quoted (3) Sale by Virtue of Execution and Attachment
includes the costs of the goods, insurance, Art. 1544 does NOT apply to the sale of
and freight charges on the goods up to the unregistered land at an execution sale because a
point of destination. buyer of unregistered land at an execution sale
v. F.A.S. (Free Alongside): Seller bears the only steps into the shoes of the judgment debtor,
expenses of transportation until he delivers and merely acquires the latter's interest in the
the goods alongside a vessel at a named property sold as of the time the property was
port. levied upon. [Carumba v. CA, 1970]
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(d) Profit that the seller would have made if sale a foreclosure sale resulting in a deficiency. The
had been fully performed payment of the sum of P1,250 of Sapinoso was
a voluntary act on his part and did not result
(3) Rescission by giving the buyer notice of the from a “further action” instituted by Northern
election to rescind [Art. 1597] Motors. [Motors vs. Sapinoso, 1970]
iii.The purpose of the law is to remedy the abuses
Under this rule, rescission would bar an action on committed in foreclosure of chattel
the contract because it means cancellation of the mortgages. It prevents mortgagees from
contractual obligations between the parties. seizing the mortgaged property, buying it at
[Baviera] foreclosure sale for a low price and then
bringing the suit against the mortgagor for a
(4) Special rule for sale of movables by installments – deficiency judgment. The almost invariable
Recto Law [Arts. 1484, 1485] result of this procedure was that the mortgagor
found himself minus the property and still
Applies in cases of: owing practically the full amount of his original
(a) Sale of movables in installment indebtedness. [Bachrach Motor Co., Inc. v.
i. The rule is intended to apply to sales of Millan, 1935]
movables, the price of which is payable in iv.Remedies are ALTERNATIVE, not cumulative,
two or more installments, but not to i.e. exercise of one bars exercise of the others.
straight-term sales where the price is [Nonato vs. IAC, 1985]
payable in full, after making a down
payment because the law aims to protect
improvident buyers who may be tempted to
buy beyond their means. [Levy Hermanos vs.
Gervacio, 1939] Performance of Contract
(b) Lease of personal property with option to buy
i. When lessor has deprived the lessee of the DELIVERY OF THING SOLD
possession or enjoyment of the thing (Ex.: (1) SALE OF MOVABLES – ARTS. 1522, 1537, 1480
When lessor files a complaint for replevin (a) When Quantity less than expected
against lessee) i. Buyer may reject all
ii. Also applies when seller assigns his credit ii. Buyer accepts with knowledge of seller’s
to someone else inability to deliver the rest – buyer pays at
contract price
ALTERNATIVE REMEDIES OF THE UNPAID SELLER UNDER iii.Buyer has used or disposed prior to knowing
RECTO LAW seller’s inability to deliver the rest – buyer
(a) Specific Performance pays fair value
(b) Cancellation of sale: If vendee fails to pay 2 or (b) Quantity more than expected
more installments i. If divisible, buyer may reject excess
i. When the seller cancels the sale by ii. If indivisible, buyer may reject all
repossessing the property sold, he is barred (c) Quality different or different goods
from exacting payment for its price. i. If divisible, buyer may accept the goods
(c) Foreclosure of Chattel Mortgage: If vendee fails compliant with contract and reject those
to pay 2 or more installments that are not
i. If seller chooses this remedy, he shall have no ii. If indivisible, buyer may reject all [Art. 1522]
further action to recover any unpaid balance, (d) Sale of specific mass of goods
and any stipulation to the contrary shall be void i. In the sale of fungibles where the measure
ii. What Art 1484 (3) prohibits is “further action or weight has not been agreed upon nor is
against the purchaser to recover any unpaid there a fixed rate based upon a
balance of the price;” and although this Court measurement, the subject matter of the
has construed the word “action” to mean “any sale is a determinate object – the specific
judicial or extrajudicial proceeding by virtue of mass; seller is merely required to deliver
which the vendor may lawfully be enabled to such mass even if actual quantity falls short
exact recovery of the supposed unsatisfied of parties’ estimate [Art. 1480]
balance of the purchase price from the (e) Delivery by installments
purchaser or his privy,” there is no occasion at i. By default, buyer is not bound to accept
this stage to apply the restrictive provision of delivery of goods by installments
the said article because there has not yet been
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Express Warranty False Representation (c) Final judgment based on a right prior to the
sale or an act imputable to the vendor
(d) Seller is summoned and made co-defendant in
However, buyer who the suit for eviction at the instance of the
fails to inspect buyer. [Power Commercial and Industrial Corp.
condition of property v. CA, 1997]
despite ample
opportunity to do so IMPLIED WARRANTY AGAINST ENCUMBRANCE/NON-
when there is no APPARENT SERVITUDES
opposition on the part Requisites for breach:
of seller to inspect (1) Thing sold is an immovable
cannot later on allege (2) Burden or servitude encumbering the thing sold
false representation. is:
[Phil Mftg Co. v Go (a) Non-apparent to the naked eye
Jucco, 1926] (b) Not mentioned in the agreement
(c) Of such nature that it must be presumed that
Reason: buyer’s duty the buyer would not have bought it had he
to inspect remains been aware of it
despite false (d) Not recorded in the Registry of Property unless
representation by the there is an express warranty that the thing is
seller; he has the duty free from all burdens and encumbrances
to exercise due [Art.1560]
diligence.
IMPLIED WARRANTY AGAINST HIDDEN DEFECTS
IMPLIED WARRANTIES – ART. 1547
Requisites for breach:
(1) The defect renders the thing sold unfit for the use
(TODS)
for which it was intended OR diminishes its
(1) Implied Warranty of Title
fitness for such use to such an extent that had the
(2) Implied Warranty against Encumbrance/Non-
buyer been aware thereof, he would not have
Apparent Servitudes
bought it or would have paid a lower price;
(3) Implied Warranty against Hidden Defects [Art.
(2) The defect is not patent or visible;
1547]
(3) The buyer is not an expert who, by reason of his
(a) Implied warranty as to Merchantable Quality
trade or profession, should have known the defect
and Fitness of Goods
(4) The seller is aware of the hidden fault or defect,
(b) Implied warranty against Redhibitory Defect
OR even if he is not aware thereof, if there is no
in the Sale of Animals [Art. 1572]
stipulation to the contrary [Arts.1561 &1566]
(c) Quality and Fitness of Goods in Sale by
Sample or Description
IMPLIED WARRANTY AS TO MERCHANTABLE QUALITY AND
(4) Other Warranties
FITNESS OF GOODS
IMPLIED WARRANTY OF TITLE
Merchantable Quality:
(1) Implied warranty arises by operation of law and (1) Where the goods are brought by description from
need not be stipulated in the contract of sale. a seller who deals in goods of that description
(2) Warranty of Seller’s Right to Sell: Seller warrants [Art.1562]
his right to sell at the time the ownership is to (2) In a sale by sample, if the seller is a dealer in
pass. goods of that kind and the defect is not apparent
(a) Inapplicable to a sheriff, auctioneer, mortgagee, on reasonable examination of the sample
pledgee, or other person professing to sell by [Art.1566]
virtue of authority in fact or law. [Art. 1547]
(3) Warranty against Eviction: seller warrants that Fitness for a particular purpose:
buyer, from the time ownership passes, shall have (1) Where the buyer expressly or impliedly makes
and enjoy legal and peaceful possession of the known to the seller the particular purpose for
thing. Its requisites are: which the goods are acquired AND it appears
(a) Buyer is deprived of the whole or a part of the that the buyer relied on the seller’s skill or
thing sold; judgment [Art.1562(1)]
(b) Eviction is by final judgment
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IMPLIED WARRANTY AGAINST REDHIBITORY DEFECT IN THE (following the general rule on rescission of
SALE OF ANIMALS (ART. 1572) contracts)
(2) Remedies:
Redhibitory defect- a hidden defect of animals of (a) Accept goods + demand diminution/
such nature that expert knowledge is not sufficient to extinction of price
discover it, even in a case where a professional (b) Accept goods + damages
inspection has been made (c) Refuse to accept goods + damages
(d) Rescind (Refuse to accept or return or offer to
No warranty in case of [Art. 1574]: return) + recover price paid
(a) Animals sold at fairs or public auctions (3) Rescission not available when buyer:
(b) Livestock sold as condemned (a) Knew of breach of warranty when he accepted
the goods without protest
The following sales are void [Art. 1575]: (b) Fails to notify the seller about election to
(a) Sale of animals suffering from contagious rescind within a reasonable period of time
diseases (c) Fails to return or offer to return the goods to
(b) Sale of animals unfit for the purpose for which the seller in substantially a good condition as
they are acquired as stated in the contract they were when delivered, unless deterioration
was due to breach of warranty
Veterinarian liable if he fails to discover or disclose (4) Measure of damages: Difference between value
the hidden defect through ignorance or bad faith [Art of goods at the time of delivery and the value they
1576] would have had if they had answered to the
warranty
Seller liable if animal dies within 3 days after its (5) Effects of rescission:
purchase due to a disease that existed at the time of (a) Buyer no longer liable for price
sale. [Art 1578] i. Entitled to the return of any part of price
paid, concurrently with or immediately after
EFFECTS OF WARRANTIES an offer to return the goods
(1) Natural tendency is to induce buyer to purchase (b) If seller refuses to accept offer to return
the subject matter goods: buyer deemed as bailee for seller and
(2) Buyer purchases subject matter relying thereon has right of lien to secure payment of part of
(3) Seller liable for damages in case of breach price paid
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(3) Resale may be in a private or public sale, making a down payment because the law
but seller cannot buy directly or indirectly. aims to protect improvident buyers who may
(4) For resale to be valid, buyer need not be be tempted to buy beyond their means. [Levy
notified of an intention to resell or the Hermanos vs. Gervacio, 1939]
time and place of the resale. (2) Lease of personal property with option to buy
(a) When lessor has deprived the lessee of the
Effects: possession or enjoyment of the thing (Ex.:
(1) Seller is no longer liable to the original When lessor files a complaint for replevin
buyer upon the contract of sale or for any against lessee)
profit made by the resale (b) Also applies when seller assigns his credit to
(2) Buyer at resale acquires good title as someone else
against the original owner Alternative Remedies of the unpaid seller under Recto
(3) In case resale is at a loss, seller is entitled Law
to recover the difference from the original (1) Specific Performance
buyer (2) Cancellation of sale: If vendee fails to pay 2 or
(4) Seller may recover damages from original more installments
buyer for breach of contract (a) When the seller cancels the sale by
repossessing the property sold, he is barred
(d) Special right to rescind: from exacting payment for its price.
RETURN of the title over the undelivered (3) Foreclosure of Chattel Mortgage: If vendee fails
goods to the seller, and right to recover to pay 2 or more installments
DAMAGES for breach of contract [Art. 1534] (a) If seller chooses this remedy, he shall have no
further action to recover any unpaid balance,
Available to unpaid seller who has a right of and any stipulation to the contrary shall be
lien or who has stopped the goods in transitu void
(b) What Art 1484 (3) prohibits is “further action
When available: against the purchaser to recover any unpaid
(1) Seller expressly reserved his right to balance of the price;” and although this Court
rescind in case buyer defaults has construed the word “action” to mean “any
(2) Buyer has been in default in payment for judicial or extrajudicial proceeding by virtue of
an unreasonable time which the vendor may lawfully be enabled to
exact recovery of the supposed unsatisfied
Transfer of title shall not be held to have been balance of the purchase price from the
rescinded by the unpaid seller until he purchaser or his privy,” there is no occasion at
manifests by notice to the buyer or some other this stage to apply the restrictive provision of
overt act an intention to rescind. the said article because there has not yet been
a foreclosure sale resulting in a deficiency.
(e) When the whole of the price has not been paid The payment of the sum of P1,250 of Sapinoso
or tendered; was a voluntary act on his part and did not
result from a “further action” instituted by
(f) When a bill of exchange or other negotiable Northern Motors. [Motors vs. Sapinoso, 1970]
instrument has been received as conditional (c) The purpose of the law is to remedy the
payment and the condition on which it was abuses committed in foreclosure of chattel
received has been broken by reason of the mortgages. It prevents mortgagees from
dishonor of the instrument, the insolvency of seizing the mortgaged property, buying it at
the buyer, or otherwise. foreclosure sale for a low price and then
bringing the suit against the mortgagor for a
deficiency judgment. The almost invariable
RECTO LAW: SALE OF MOVABLES ON result of this procedure was that the
INSTALLMENT – ARTS. 1484-1486 mortgagor found himself minus the property
and still owing practically the full amount of
Applies in cases of: his original indebtedness. [Bachrach Motor
(1) Sale of movables in installment Co., Inc. v. Millan, 1935]
(a) The rule is intended to apply to sales of (d) Remedies are ALTERNATIVE, not cumulative,
movables, the price of which is payable in 2 or i.e. exercise of one bars exercise of the others.
more installments, but not to straight-term [Nonato vs. IAC, 1985]
sales where the price is payable in full, after
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(1) SALE OF IMMOVABLES (4) Seller may go to court for judicial rescission in
(a) PD 957, sec. 23, 24 lieu of a notarial act of rescission
Non-forfeiture of payments (5) During the grace period, buyer shall have the
(1) No installment payment made by the buyer right:
shall be forfeited in favor of the owner or (a) To sell or assign his rights, to be evidenced
developer of the condominium or subdivision in a notarial instrument
project, after due notice, when the buyer (b) To update his account
desists from paying due to the failure of the (c) To pay in advance any installment, or the
developer or owner to develop the project full unpaid balance of the price, without
according to the approved plans or within the any interest
time limit stated.
(2) Buyer’s Remedy: At his option, he may In the sale of immovables
reimburse the total amount paid including (1) Rescission for Anticipatory Breach [Art. 1591]
amortization interest with interest thereon at (a) Available when seller has reasonable
the legal rate grounds to fear the loss of the immovable
(3) If the buyer fails to pay the installments for property sold and its price
reasons other than the failure of the owner or (b) Example: Buyer destroys the building sold,
developer to develop the project, his rights there being no security therefor, and buyer
shall be governed by RA 6552. becomes insolvent
(c) Court has no discretion to compel the
(b) Maceda Law: Sale of Immovables on seller to wait for the expiration of the
Installment period to pay, or to grant the buyer more
time to pay
RA 6552: An Act To Provide Protection for Buyers (2) Specific Performance + Damages [Art. 1191]
of Real Estate on Installment Payments (a) Seller may choose between specific
performance and rescission, with damages
DOES not apply to: in either case
(1) Industrial lots (b) Court has discretion, for a just cause, to
(2) Commercial buildings give the buyer more time to pay even if the
(3) Sale to tenants under Agricultural Reform seller chooses rescission
Code [RA 3844] (3) Rescission + Damages [Art. 1191]
Imposes ADDITIONAL REQUIREMENTS FOR A (a) If seller chose specific performance, and
VALID RESCISSION: such becomes impossible, he may still
(1) If buyer has paid at least 2 years of avail of rescission
installments: (GRN) (b) If absolute sale, seller must make a
(a) Grace period: 1 month per year of demand for rescission
installment payments made. BUT buyer i. Judicially, OR
may only avail of it only once in every 5 ii. By a notarial act
years (c) Necessary even if automatic rescission is
(b) Refund of Cash Surrender Value (CSV): stipulated
50% of total amount paid + 5% for every (d) Effect of lack of demand: Buyer can still pay
year after the 1st 5 years of installments (e) Effect of demand: Court may not grant
i. BUT not greater than 90% of total buyer a new term
amount paid
(c) Notice of cancellation of demand for REMEDIES OF THE BUYER
rescission by notarial act is effective 30 General rule: Courts will refuse to decree specific
days from the buyer’s receipt thereof and performance with respect to chattels, because
upon full payment of CSV damages are a sufficient remedy
(2) If buyer has paid less than 2 years: (GN) Exception: Buyer is entitled to the specific thing
(a) Grace period: at least 60 days which to him has special value and which he cannot
(b) Notice of cancellation or demand for readily obtain in the market OR where damages
rescission by notarial act, effective 30 days would not furnish a complete and adequate remedy
upon receipt thereof [Baviera]
(3) Down payments, deposits, or options on the
contract shall be included in the total number (1) SALE OF MOVABLE
of installments made (1) Remedy for breach of obligation to preserve
If thing is lost—
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CONVENTIONAL REDEMPTION – ART. 1601 (c) Necessary and useful expenses made on the
thing sold
DEFINITION (2) Complying with any other stipulation agreed
(1) Vendor reserves the right to repurchase the thing upon, if any.
sold, with the obligation to comply with the
provisions of Article 1616 and other stipulations The general rule in redemption is that it is not
which may have been agreed upon. [Art 1601,CC] sufficient that a person offering to redeem manifests
(2) Available when the seller reserves the right to his desire to do so. The statement of intention must
repurchase the thing sold in the same instrument be accompanied by an actual and simultaneous
of sale as one of the stipulations of the contract tender of payment for the full amount of the
[Villarica v CA, 1968] repurchase price. [BPI Family Savings Bank, Inc. v.
Veloso, 2004]
PERIOD
General Rule: Follow period stipulated in contract, Tender of payment is enough (i.e., consignation is
but should not exceed 10 years. not necessary), if made on time, as a basis for action
(1) If no period stipulated, then it shall be four years against the buyer to compel him to resell. But that
from the execution of the contract tender does not in itself relieve the buyer from his
(2) But vendor may still exercise the right to obligation to pay the price when redemption is
repurchase within thirty days from the time final allowed by the court. [Paez v. Magno, 1949]
judgment was rendered in a civil action on the
basis that the contract was a true sale with right EFFECT OF REDEMPTION
to repurchase (1) The seller shall receive the thing free from all
charges or mortgages constituted by the buyer
BY WHOM EXERCISED BUT he shall respect leases executed by the
(1) Vendor buyer in good faith and in accordance with local
(2) His heirs, assigns or agents custom.
(3) Creditor, if he has exhausted the property of the (2) If there are growing fruits at the time of sale and at
vendor the time of redemption: no reimbursement or
(4) Co-owners of an immovable, if they sold their prorating if the buyer did not pay indemnity at the
interests to the same person, may only redeem time of sale
their respective shares (3) If there were no growing fruits at the time of sale,
(a) Vendee cannot be compelled to agree to a but some exist at the time of redemption: fruits
partial redemption prorated (buyer entitled to part corresponding to
(b) If the co-owners sold their interest to the same time he possessed the land in the last year,
person who previously bought the share of a counted from the anniversary of the date of sale)
co-owner subject to a right of redemption,
then the latter may be compelled to redeem EFFECT OF NON-REDEMPTION
the whole property Ownership is consolidated in the buyer BUT the
consolidation shall not be recorded in the Registry of
FROM WHOM TO REDEEM property without a judicial order, after the vendor has
(1) Vendee a retro been duly heard.
(2) His heirs, assigns or agents
(3) Subsequent purchaser of property, even if the RIGHT TO REDEEM VS. OPTION TO PURCHASE (VILLANUEVA)
right to redeem was not mentioned in the Right to Redeem Option to Purchase
subsequent contract; except if registered land,
where the right to redeem must be annotated on Not a separate contract Generally a principal
the title but part of a main contract and may be
(4) If several heirs, then the right of redemption can contract of sale, and created independent of
be exercised against each heir for his share of the cannot exist unless another contract
property reserved at the time of
the perfection of the
HOW EXERCISED
main contract of sale
(1) By returning the ff. to the buyer: (PEN) Does not need its Must have a
(a) Price of the sale; separate consideration consideration separate
(b) Expenses of the contract and other legitimate to be valid and effective and distinct from the
payments made by reason of the sale; purchase price to be
valid and effective [Arts.
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Right to Redeem Option to Purchase (3) Period of redemption extended (or granted anew)
upon or after the expiration of the right to
1324 and 1479] repurchase;
(4) Part of the purchase price retained by the seller;
The maximum period for The period of the option (5) Payment of taxes on the thing sold borne by the
the exercise of the right contract may be beyond seller;
to repurchase cannot the 10-year period (6) Any other case where it may be fairly inferred that
exceed 10 years the Real intention of the parties is for the
Requires in addition a May be exercised by transaction to secure a debt or other obligation.
tender of payment of the notice of its exercise to
amount required by law, the offeror FOR THE PRESUMPTION OF AN EQUITABLE MORTGAGE TO
including consignment ARISE UNDER ART. 1602, 2 REQUISITES MUST CONCUR
thereof if tender of (MOLINA V. CA, 2003)
payment cannot be (1) That the parties entered into a contract
made effectively on the denominated as a contract of sale, and
buyer (2) That their intention was to secure an existing
debt by way of a mortgage.
EQUITABLE MORTGAGE – ARTS. 1602-1604
Definition: An equitable mortgage is defined as one In case of doubt, a contract purporting to be a sale
which, although lacking in some formality, or form or with right to repurchase shall be construed as an
words, or other requisites demanded by a statute, equitable mortgage [Art. 1603]
nevertheless reveals the intention of the parties to
charge real property as security for a debt, and RATIONALE BEHIND PROVISION ON EQUITABLE MORTGAGE
contains nothing impossible or contrary to law. (1) Circumvention of usury law
[Molina v. CA, 2003] (2) Circumvention of prohibition against pactum
commissorium – creditor cannot appropriate the
The Valdehuezas having remained in possession of things given by way of pledge or mortgage since
the land and the realty taxes having been paid by remedy is foreclosure.
them, the contracts which purported to be pacto de
retro transactions are presumed to be equitable
REMEDIES OF APPARENT VENDOR
mortgages, whether registered or not, there being no
(1) If the instrument does not reflect the true
third parties involved. [Tan v. Valdehueza, 2003]
agreement: remedy is reformation
(2) If decreed to be an equitable mortgage: any
A pactum commissorium is a stipulation enabling the
money, fruits or other benefit to be received by
mortgagee to acquire ownership of the mortgaged
the buyer as rent or otherwise considered as
properties without need of foreclosure proceedings
interest.
which is a nullity being contrary to the provisions of
(3) If decreed as a true sale with right to purchase:
Article 2088 of the Civil Code. The inclusion of such
seller may redeem within 30 days from finality of
stipulation in the deed shows the intention to
judgment, even if the period for redemption has
mortgage rather than to sell. [Legaspi v. Spouses
expired.
Ong, 2005]
PERIOD OF REDEMPTION – ART. 1606
A pactum commissorium is contrary to the nature of
a true pacto de retro sale since ownership of the Art. 1606. The right referred to in Article 1601, in the
property sold is immediately transferred to the absence of an express agreement, shall last four
vendee a retro upon execution of the sale, subject years from the date of the contract.
only to the repurchase of a vendor a retro within the
stipulated period. Should there be an agreement, the period cannot
exceed ten years.
DISTINGUISHED FROM OPTION TO BUY – ART.
1602 However, the vendor may still exercise the right to
repurchase within thirty days from the time final
PRESUMPTION THAT A CONTRACT IS AN EQUITABLE judgment was rendered in a civil action on the basis
MORTGAGE ARISES WHEN (5P-R)— ART. 1602 that the contract was a true sale with right to
(1) Price unusually inadequate; repurchase.
(2) Possession retained by the seller as lessee or
otherwise;
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the roads, gutters, drainage, sewerage, water system, (2) Payment of prescribed fee
lighting systems, and full development of the (3) Filing of bond or other security (amount fixed by
subdivision project or the condominium project and NHA) conditioned upon his faithful compliance
the compliance by the owner or dealer with the with provisions of PD 957
applicable laws and rules and regulations. The bond
shall be executed in favor of the Republic of the When registration of DBS terminates
Philippines and shall authorize the Authority to use (1) Termination of employment with dealer or broker
the proceeds thereof for the purposes of its (2) Expiration (31st day of Dec each year)
undertaking in case of forfeiture as provided in this
Decree. Registration of DBS may be renewed not less than
30 nor more than 60 days before Jan 1 and by
When license to sell and performance bond not payment of fee. If renewal is not within said period, it
required [Section 7, PD 957] shall be treated as an original application.
A license to sell and performance bond shall not be
required in any of the following transactions: Revocation of registration as DBS [Section 12, PD 957]
(a) Sale of a subdivision lot resulting from the Grounds
partition of land among co-owners and co-heirs. (1) Has violated any provision of this Decree or any
(b) Sale or transfer of a subdivision lot by the original rule or regulation made hereunder; or
purchaser thereof and any subsequent sale of the (2) Has made a material false statement in his
same lot. application for registration; or
(c) Sale of a subdivision lot or a condominium unit by (3) Has been guilty of a fraudulent act in connection
or for the account of a mortgagee in the ordinary with any sale of a subdivision lot or condominium
course of business when necessary to liquidate a unit; or
bona fide debt. (4) Has demonstrated his unworthiness to transact
the business of dealer, broker, or salesman, as
Grounds for suspension of license to sell [Section 8, the case may be.
PD 957] The NHA may suspend the DBS' registration pending
(1) misleading, incorrect, inadequate, or incomplete hearing of the case. The suspension or revocation of
information in registration statement the registration of a dealer or broker (DB) shall carry
(2) fraud upon prospective buyers on the sale or with it all the suspension or revocation of the
offering for a sale registration of all his salesmen (S).
Note: suspension is confidential unless orer of
suspension has been violated. Characteristics of sale of a condominium or
subdivision unit and similar contracts
Grounds for revocation of registration certificate and (1) Contracts to sell, deeds of sale, and other similar
license to sell [Section 9, PD 957] instruments must be registered with the Register
(1) Insolvency of owner/dealer of Deeds
(2) Violation of owner of PD 957 or its IRR or any (2) Mortgages on unit or lot by owner/developer
undertaking of his/its performance bond needs prior written approval by NHA for the
(3) Has been or is engaged or is about to engage in protection of buyers
fraudulent transactions (3) Advertisements by owner of developer become
(4) Misrepresentation in any prospectus, brochure, part of sales warranties enforceable against
circular or other literature about the subdivision owner or developer
project or condominium project that has been (4) No forfeiture of installments already paid by
distributed to prospective buyers buyer if buyer stops paying because of failure by
(5) Bad business repute of owner/dealer owner or developer to develop subdivision or
(6) Does not conduct his business in accordance with condominium
law or sound business principles (5) Failure to pay installments governed by Maceda
Law [RA 6552]
Requirement for Dealers, Brokers, and Salesmen (6) Title is issued to the buyer upon full payment
(DBS) (7) Realty tax is paid by owner or developer while not
Registration fully paid; but if the buyer occupies the unit/lot,
the owner/developer may recover the taxes from
Dealers, brokers, and salesmen (DBS) must be the buyer
registered (Section 11, PD 957) (8) Owner or developer cannot demand any other
Requisites of registration: charges allegedly for community benefit (may be
(1) Good reputation and compliance with NHA rules done by homeowner's association)
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(c) The lien may be enforced by any condominium POWER OF ATTORNEY HELD BY CORPORATION
owner or by the management body of the project IN CASE OF VOLUNTARY DISSOLUTION OF
CONDOMINIUM CORPORATION [SECTION 15]
ASSESSMENT IN ACCORDANCE WITH The condominium corporation is deemed to hold a
DECLARATION OF RESTRICTIONS [SECTION 20] power of attorney from all members/stockholders to
This is the "tax imposition power" of the sell and dispose of their separate interests in the
condominium corporation. If unpaid, the project. To liquidate, the condominium corporation
management body may cause a notice of will sell the entire project as if it owned the whole
assessment to be registered with the Register of project itself, subject to the corporate and individual
Deeds, which may be released only upon payment of condominium creditors.
the assessed fees. This lien is superior to all other
subsequent liens except real property taxes liens and SALE, EXCHANGE, LEASE, OR DISPOSITION BY
other liens provided for in the declaration of CORPORATION OF THE COMMON AREAS
restrictions. [SECTION 16]
Generally not allowed unless authorized by
HOW LIEN ENFORCED AFTER NON-PAYMENT affirmative vote of all of the stockholders/members.
OF ASSESSED FEES [SECTION 20]
Judicial or extra-judicial foreclosure of real property STOCKHOLDER/MEMBER DEMANDING
mortgages, where the management body may bid PAYMENT FOR SHARES OR INTEREST AKA
unless disallowed by the declaration of restrictions. APPRAISAL RIGHT [SECTION 17]
By-laws of the condominium corporation shall
CONTENTS OF A DECLARATION OF provide that any shareholder/member demanding
RESTRICTIONS [SECTION 9] payment for his share or interest must also consent to
(1) Provisions for the management of the project by sell his separate interest in the project to the
any of the ff bodies: corporation or any buyer of the corporation's choice.
(a) Condominium corporation
(b) Association of condominium owners REQUIREMENTS FOR REGISTRATION OF
(c) Board of governors elected by condominium CONVEYANCE WITH THE REGISTER OF DEEDS
owners [SECTION 18]
(d) Management agent elected by the owners or (1) Certificate of the management body of the
by the board named in the declaration project that the conveyance is in accordance with
(2) Provisions for voting majorities quorums, notices, the declaration of restrictions
meeting date, and other rules governing such
body or bodies REALTY TAX ON CONDOMINIUMS [SECTION 25]
(3) Powers of the management body Each condominium separately owned shall be
(4) Maintenance of insurance policies (fire, casualty, separately assessed, for purposes of real property
workmen's compensation, etc) taxation and other tax purposes to the owners
(5) Maintenance, utility, gardening and other services thereof and the tax on each such condominium shall
for the common areas constitute a lien solely thereon.
(6) Amendment of the restrictions
(7) Reasonable assessment to meet expenditures
(8) And many other provisions - the common thread
is the management and maintenance of the
common areas and the manner of exercise of the
management body's powers
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Substantial Compliance
Art. 809, CC. In the absence of bad faith, forgery, or Advantages Disadvantages
fraud, or undue and improper pressure and
influence, defects and imperfections in the form of (a) Simple and easy to (a) No guarantee as to
attestation or in the language used therein shall not make the capacity of the
render the will invalid if it is proved that the will was (b) Induces foreigners in testator
in fact executed and attested in substantial this jurisdiction to set (b) No protection against
compliance with all the requirements of Article 805. down their last violence, intimidation
wishes or undue influence
Substantial compliance rule applies only in cases (c) Guarantees the (c) May not faithfully
when such defects and imperfections can be absolute secrecy of express the will of the
supplied by an examination of the will itself the testamentary testator due to faulty
dispositions expressions
Examples: (d) Can be easily falsified
(a) Whether all pages are consecutively numbered and concealed
(b) Whether the signatures appear in each and every
page
(c) Whether the subscribing witnesses are three Witnesses Required for Probate – [Art. 811]
(d) Whether the will was notarized [Caneda v CA] (a) At least one witness who knows the handwriting
and signature of the testator; explicitly declare
WITNESSES
that it is the testator’s
Qualifications [Art. 820, CC] (b) If contested – at least 3 of such witnesses
(1) Of sound mind (c) In the absence of a competent witness, expert
(2) Aged 18 years or over testimony may be resorted to
(3) Not blind, deaf or dumb
(4) Able to read and write General Rule: The holographic will itself must be
presented for probate [Gan v Yap (1958)]
Disqualifications [Art. 821, CC]
(1) Person not domiciled in the Philippines Exception: If there is a photostatic copy or xerox copy
(2) Those who have been convicted of falsification, of the holographic will, it may be presented for
perjury, or false testimony. probate [Rodelas v Aranza (1982)]
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Effect of insertion written by another person on the Prohibition is applicable only to joint wills executed by
validity of a holographic will Filipinos.
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Place of Testator’s Governing Law contained in a previous one which is void as to its
Revocation Domicile form [Art. 835, CC].
(1) Law of the (1) Tolentino: Reproduction in the codicil is
place where required only when the original will is void as
the will was to it form; in all other cases, reference to the
Foreign Country made; or original will suffices to republish it through the
(2) Law of the codicil.
Outside the place in which (c) If after making a will, the testator makes a second
Philippines the testator will expressly revoking the first, the revocation of
had his the second will does not revive the first will, which
domicile at the can be revived only by another will or codicil.
time of (1) PRINCIPLE OF INSTANTER: Revoking clause
nd
revocation in the 2 will is NOT TESTAMENTARY in
character but operates to revoke the prior will
Doctrine of Dependent Relative Revocation— INSTANTER upon the execution of the will
nd
The rule that where the act of destruction is containing it. The revocation of the 2 will
st
connected with the making of another will so as to does not revive the 1 will which has already
fairly raise the inference that the testator meant the become a NULLITY.
revocation of the old to depend upon the efficacy of
the new disposition intended to be substituted, the Republication vs. Revival
revocation will be conditional and dependent upon the
efficacy of the new disposition; and if for any reason, Republication Revival
the new will intended to be made as a substitute is
inoperative, the revocation fails and the original will (a) Takes place by an act (a) Takes place by
remain in full force. [Molo vs. Molo, 1951] of the testator operation of law
(b) Corrects extrinsic (b) Restores a revoked
The failure of the new testamentary disposition upon and intrinsic defects will
whose validity the revocation depends is equivalent
to the non-fulfillment of a suspensive condition and
hence prevents the revocation of the original will.
ALLOWANCE AND DISALLOWANCE OF WILLS
Revocation vs. Nullity Probate Requirement
Probate –a Special Proceeding required to establish
Revocation Nullity the validity of a will and in order to pass real or
personal property [Art. 838, CC]
(a) By the act of the (a) Proceeds from law
testator (b) Inherent in the Matters to be proved in probate
(b) Presupposes a valid testament, be it an (1) Whether the instrument which is offered for
act intrinsic or an probate is the last will and testament of the
(c) Takes place during extrinsic defect decedent
the lifetime of the (c) Invoked after the (2) Whether the will has been executed in
testator testator’s death by accordance with the formalities prescribed by law
(d) Testator cannot his heirs (3) Whether the testator had testamentary capacity
renounce the right to (d) Nullity of a will can at the time of execution of the will
revoke be disregarded by
the heirs through Issues to be resolved in probate proceedings – [Art.
voluntary 839]
compliance General Rule: the probate court cannot inquire into
therewith the intrinsic validity of testamentary provisions. Only
the extrinsic validity of such wills may be examined.
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(b) Valera vs. Inserto (1987): Claimants are all heirs who are to succeed him in his property and
and they consent either, expressly or impliedly, to transmissible rights and obligation [Art 840, CC]
the submission of the question of intrinsic validity
to the court. A will shall be VALID even though it (1) should not
(c) Pastor vs. CA (1983): Probate court may pass contain an institution of an heir or (2) such institution
upon the title thereto, but such determination is should not comprise the entire estate or (3) the
provisional and not conclusive, and is subject to person so instituted should not accept the
the final decision in a separate action to resolve inheritance or be incapacitated to succeed.
title.
In such cases, the testamentary dispositions made in
Revocation v. Disallowance accordance with law shall be complied with and the
remainder of the estate shall pass to the legal heirs
Revocation Disallowance [Art. 841, CC].
Voluntary Act of the Given by Judicial Decree EXTENT OF GRANT [ART. 842, CC]:
Testator Freedom of disposition depends upon the existence,
With or Without Cause Must always be for a kind and number of compulosry heirs.
legal cause (1) No compulsory heirs Full power of disposition
May be partial or total Always total, except (2) One with compulsory heirs cannot disregard the
when the ground of rights of the latter (i.e. legitime)
fraud of influence for
example affects only EFFECT OF PREDECEASE OF HEIR (ART. 856, CC):
certain portions of the Any heir who dies before the testator or is
will incapacitated to succeed or renounces the
inheritance transmits no rights of the testator to his
Effect of Final Decree of Probate, Res Judicata on own heirs. This is without prejudice to the rights of
Formal Validity representation. [Tolentino]
The probate of a will by the probate court having
jurisdiction thereof is usually considered as IDENTIFICATION OF HEIRS, MANNER OF INSTITUTION [ART.
conclusive as to its due execution and validity, and is 843-849; 851-853]
also conclusive that the testator was of sound and
disposing mind at the time when he executed the FALSE CAUSE [ART. 850]:
will, and was not acting under duress, menace, fraud, The statement of a false cause for the institution of
or undue influence, and that the will is genuine and an heir shall be considered as not written unless it
not a forgery. [Mercado vs. Santos, 1938] appears from the will that the testator would not
have made such institution if he had known the
Grounds for Denying Probate (SUM IFF) falsity of such cause.
(1) If the Signature of the testator was procured by
fraud; PRETERITION
(2) If it was procured by Undue and improper The preterition or omission of one, some, or all of the
pressure and influence, on the part of the compulsory heirs in the direct line, whether living at
beneficiary or some other person; the time of the execution of the will or born after the
(3) If the testator acted by Mistake or did not intend death of the testator, shall annul the institution of
that the instrument he signed should be his will heir; but the devises and legacies shall be valid
at the time affixing his signature thereto; insofar as they are not inofficious.
(4) If the testator was Insane or otherwise mentally
incapable of making a will at the time of its If the omitted compulsory heirs should die before the
execution; testator, the institution shall be effectual, without
(5) If the Formalities required by law have not been prejudice to the right of representation. [Art. 854, CC]
complied with; or
(6) If it was executed through Force or under duress, Concept [Art. 854, CC]
or the influence of fear, or threats. (a) There must be a total omission of one, some or all
of the heir/s from the inheritance. [Balane citing
INSTITUTION OF HEIRS Seangio vs Reyes (2006)]
Institution of Heirs – an act by virtue of which the (b) The omission must be that of a compulsory heir.
testator designates in his will the person or persons (c) The compulsory heir omitted must be of the direct
line.
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(d) The omitted compulsory heir must be living at the (1) Neri vs. Akutin (1941): When there are no
time of the testator’s death or must at least have devises and legacies, preterition will result in
been conceived before the testator’s death. the annulment of the will and give rise to
intestate succession.
COMPULSORY HEIRS IN THE DIRECT LINE
A direct line is that constituted by the series of SUBSTITUTION OF HEIRS
degrees among ascendants and descendants DEFINITION
(ascending and descending). [Art 964 par.2] Substitution - is the appointment of another heir, so
that he may enter into the inheritance in default of
PRETERITION V. DISPOSITION LESS THAN LEGITIME the heir originally instituted. [Art 857, CC]
BALANE:
(a) If the heir in question is instituted in the will but KINDS
the portion given to him by the will is less than his Brief or Compendious [Art. 860, CC]
legitime – there is no preterition. [Reyes vs (a) Brief – Two or more persons were designated by
Barretto-Datu (1967)] the testator to substitute for only one heir
(b) If the heir is given a legacy or devise – there is no (b) Compendious – One person is designated to take
preterition. [Aznar vs Duncan (1966)] the place of two or more heirs
(c) If the heir had received a donation inter vivos from
the testator – the better view is that there is no Reciprocal
preterition. The donation inter vivos is treated as If the heirs instituted in unequal shares should be
an advance on the legitime under Articles 906, reciprocally substituted, the substitute shall acquire
909, 910 and 1062 the share of the heir who dies, renounces, or is
(d) The remedy, if the value of inheritance, legacy or incapacitated, unless it clearly appears that the
devise, or donation inter vivos is only for intention of the testator was otherwise. If there is
completion of his legitime under Articles 906 and more than one substitute, they shall have the same
907 share in the substitution as the institution.
EFFECTS OF PRETERITION [ART. 854, CC] Fideicommisary Substitution. – The testator institutes
(a) The institution of the heir is annulled. an heir with an obligation to preserve and to deliver
(b) Devises and legacies shall remain valid as long as to another the property so inherited. The heir
they are not inofficious. instituted to such condition is called the First Heir or
(c) If the omitted compulsory heir should die before the Fiduciary Heir; the one to receive the property is
the testator, the institution shall be effective, the fideicommissary or the second heir. [Art 863, CC]
without prejudice to the right of representation.
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(2) Secondary: Those who succeed only in the absence Direct Ascending Line
of the Primary compulsory heirs: (a) Rule of division between lines
(a) Legitimate Parents and Legitimate (1) The father and the mother shall inherit
Ascendants, with respect to their Legitimate equally if both living. One succeeds to the
Children and Descendants. (They will inherit entire estate of the child if the other is dead.
only in default of legitimate children and their [Art. 986, CC]
descendants) (2) In default of the mother and the father, the
(b) Illegitimate Parents with respect to their ascendants nearest in degree will inherit. [Art.
Illegitimate Children. (They will inherit only in 987]
default of the illegitimate and legitimate (3) If there is more than one relative of the same
children and their respective descendants). degree but of different lines, one half will go
Note that other illegitimate ascendants are to the paternal ascendants and the other half
not included. to the maternal ascendants. [Art. 987]
(b) Rule of equal division
(3) Concurring: Those who succeed together with the (1) The relatives who are in the same degree shall
primary or the secondary compulsory heirs: inherit in equal shares. [Art 987]
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Legitimat
Surviving Relatives Legitimate Children Surviving Illegitimate e Parents Illegitimate
[LC] & Descendants Spouse [SS] Children [ILC] [LP] & Parents
Ascendant [ILP]
s
14 ILP alone 1/2
15 ILP, SS ¼ 1/4
Steps in Determining the Legitime of Compulsory or a brother or sister, is obliged to reserve such
Heirs property as he may have acquired by operation of
(1) Determine the gross value of the estate at the law for the benefit of relatives who are within the
time of the death of the testator. third degree and who belong to the line from which
(2) Determine all debts and charges which are said property came.
chargeable against the estate.
(3) Determine the net value of the estate by Concept of Reserva Troncal [Art. 891, CC]
deducting all the debts and charges from the (1) A descendant (prepositus) inherits or acquires
gross value of the estate. property from an ascendant (origin or mediate
(4) Collate or add the value of all donations inter source) by gratuitous title or from a brother or
vivos to the net value of the estate. sister
(5) Determine the amount of the legitime from the (2) The same property is inherited by another
total thus found. ascendant (reservista) or is otherwise acquired by
(6) Impute the value of all donations inter vivos made him by operation of law from the said descendant
to strangers against the disposable free portion (prepositus)
and restore it to the estate if the donation is (3) The said ascendant (reservista) must reserve the
inofficious. property for the benefit of the relatives of the
(7) Distribute the residue of the estate in accordance deceased descendant within the third civil degree
with the will of the testator. and who belong to the line from which the said
property came (reservatarios).
Remedy of a Compulsory Heir in case of Impairment
of Legitime Parties: [Balane (2010)]
Extent and Nature of Remedy (1) Origin or Mediate Source – either an ascendant of
Impairment any degree of ascent or a brother or sister of the
st
Total omission of a Annulment of institution Prepositus; responsible for the 1 transfer
compulsory heir who is a and reduction of legacies (2) Prepositus – the first transferee of the reserved
direct descendant or and devises [Art. 854, property
ascendant (preterition) CC] (3) Reservista – an ascendant of the Prepositus other
Testamentary Reduction of the than the Origin or Mediate Source; the one
dispositions impairing or disposition insofar as obligated to reserve the property
rd
diminishing the legitime they may be inofficious (4) Reservatarios – within the 3 degree of
or excessive [Art. 907, consanguinity from the Prepositus [Cabardo v.
CC] Villanueva (1922)] belonging to the line from
Partial impairment Completion of the which the property came
legitime [Art. 906, CC]
Impairment by Collation – reduction of Requisites for Reserva Troncal [Chua vs. CFI(1977)]
inofficious donations donations [Arts. 771 and (1) That the property was acquired by a descendant
911, CC] (Prepositus) from an ascendant or from a brother
or sister (Origin or Mediate Source) by gratuitous
RESERVA TRONCAL title,
Art. 891. The ascendant who inherits from his (2) That the Prepositus died without (legitimate*)
descendant any property which the latter may have issue,
acquired by gratuitous title from another ascendant, (3) That the property is inherited by another
ascendant (Reservista) by operation of law, and
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rd
(4) That there are relatives within the 3 degree Two Views
(Reservatarios) belonging to the line from which (1) Reserva Maxima: The entire property will be
said property came. considered acquired as legitime and therefore
wholly reservable
Note: Only legitimate descendants will prevent the (2) Reserva Minima: One half is reservable, the other
property from being inherited by the legitimate half is not subject to reserva troncal [Tolentino, p.
ascending line by operation of law [Balane] 284]
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testator to make a will or to change one already testator to make a will or to change one already
made; made;
(4) A refusal without justifiable cause to support the (6) The loss of parental authority for causes specified
parent or ascendant who disinherits such child or in this Code;
descendant; (7) The refusal to support the children or
(5) Maltreatment of the testator by word or deed, by descendants without justifiable cause;
the child or descendant; (8) An attempt by one of the parents against the life
(6) When a child or descendant leads a dishonorable of the other, unless there has been a
or disgraceful life; reconciliation between them.
(7) Conviction of a crime which carries with it the
penalty of civil interdiction. Disinheritance of a spouse – [Article 921, CC]
Article 921. The following shall be sufficient causes
Disinheritance of parents and ascendants for disinheriting a spouse:
Article 920. The following shall be sufficient causes (1) When the spouse has been convicted of an
for the disinheritance of parents or ascendants, attempt against the life of the testator, his or her
whether legitimate or illegitimate: descendants, or ascendants;
(1) When the parents have abandoned their children (2) When the spouse has accused the testator of a
or induced their daughters to live a corrupt or crime for which the law prescribes imprisonment
immoral life, or attempted against their virtue; of six years or more, and the accusation has been
(2) When the parent or ascendant has been found to be false;
convicted of an attempt against the life of the (3) When the spouse by fraud, violence, intimidation,
testator, his or her spouse, descendants, or or undue influence cause the testator to make a
ascendants; will or to change one already made;
(3) When the parent or ascendant has accused the (4) When the spouse has given cause for legal
testator of a crime for which the law prescribes separation;
imprisonment for six years or more, if the (5) When the spouse has given grounds for the loss
accusation has been found to be false; of parental authority;
(4) When the parent or ascendant has been (6) Unjustifiable refusal to support the children or
convicted of adultery or concubinage with the the other spouse.
spouse of the testator;
(5) When the parent or ascendant by fraud, violence,
intimidation, or undue influence causes the
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Note: The moment that testator uses one of the acts Legacy Devise
of unworthiness as a cause for disinheritance; he
thereby submits it to the rules on disinheritance. A gift of personal property A gift of real property
Thus, reconciliation renders the disinheritance given in a will given in a will
ineffective. It is bequeathed It is devised
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Thing pledged by debtor Only the pledge is extinguished; the debt remains
To a creditor Shall not be applied to his credit unless the testator so declares
Order of payment of a debt (a) If testator does not really owe the debt, the disposition is void
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Order of Payment in Case the Estate Is Not Sufficient to Cover All the Legacies and Devises
Order of Preference
LIPO RPSESO
(a) Legitime of compulsory heirs (a) Remuneratory legacy/devise
(b) Donations Inter vivos (b) Preferential legacy/devise
(c) Preferential legacies or devises (c) Legacy for Support
(d) All Other legacies or devises pro rata (d) Legacy for Education
(e) Legacy/devise of Specific, determinate thing which forms
a part of the estate
(f) All Others pro rata
Application
(a) When the reduction is necessary to preserve the (a) When there are no compulsory heirs and the entire estate
legitime of compulsory heirs from impairment whether is distributed by the testator as legacies or devises; or
there are donations inter vivos or not; or (b) When there are compulsory heirs but their legitime has
(b) When, although, the legitime has been preserved by already been provided for by the testator and there are
the testator himself there are donations inter vivos. no donations inter vivos.
NOTE: Art. 911, CC governs when there is a conflict Note: Art. 950, CC governs when the question of reduction is
between compulsory heirs and the devisees and legatees. exclusively among legatees and devisees themselves.
How Legacy or Devise Delivered [Art. 951, CC] Effect of ineffective legacies or devises [Art. 956, CC]
(1) The very thing bequeathed shall be delivered and In case of repudiation, revocation or incapacity of the
not its value legatee or devisee, the legacy or devise shall
(2) With all its accessions and accessories bemerged with the mass of the hereditary estate,
(3) In the condition in which it may be upon the death except in cases of substitution or accretion.
of the testator
(4) Legacies of money must be paid in cash Ground for Revocation of Legacies and Devises [Art.
957, CC] - (TALO)
(1) Testator Transforms the thing such that it does
not retain its original form or denomination
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(2) Testator Alienates the thing by any title or for any (c) The right of Accretion applies to the free portion
cause. Reacquisition of the thing by the testator when the requisites in Art. 1016 are present.
does not make the legacy or devise valid, unless it is (d) If there is no substitute, and the right of
effected by right of repurchase. Representation or Accretion are not proper, the
(3) Thing is totally Lost during the lifetime or after rules on Intestate succession shall apply.
the death of the testator
(4) Other causes: nullity of will, non-compliance with THE INTESTATE OR LEGAL HEIRS
suspensive condition, sale of the thing to pay the (1) Relatives
debts of the deceased during the settlement of (a) Legitimate ascendants
his estate. (b) Illegitimate parents
(c) Legitimate children
(d) Illegitimate children
(e) Surviving Spouse
Legal or Intestate Succession (f) Brothers, sisters, nephews and nieces (BSNN)
(g) Other collateral relatives
(2) Surviving spouse
GENERAL PROVISIONS (3) State (through escheat proceedings)
Intestacy – that which takes place by operation of law
in default of compulsory and testamentary Intestate succession is based on the presumed will of
succession. Not defined in the Civil Code. the decedent. That is, to distribute the estate in
accordance with the love and affection he has for his
INSTANCES WHEN LEGAL OR INTESTATE SUCCESSION family, and in default of these persons, the presumed
OPERATES: [ART. 960, CC] desire to promote charitable and humanitarian
(1) If a person dies without a will, or with a void will, activities [Balane].
or one which has subsequently lost its validity
(2) When the will does not institute an heir FUNDAMENTAL PRINCIPLES IN INTESTATE SUCCESSION:
(3) Upon the expiration of term, or period of Rule of Preference between Lines
institution of heir [Balane, 426] (a) Those in the direct descending line shall exclude
(4) Upon fulfillment of a resolutory condition those in the direct ascending and collateral lines;
attached to the institution of heir, rendering the (b) Those in the direct ascending line shall, in turn,
will ineffective [Balane, 426] exclude those in the collateral line.
(5) When the will does not dispose of all the property
belonging to the testator. Legal succession shall Rule of Proximity
take place only with respect to the property which The relative nearest in degree excludes the farther
the testator has not disposed (mixed succession) one. [Art. 962[1], CC], saving the right of
(6) If the suspensive condition attached to the representation when it properly takes place.
institution of the heir does not happen or is not
fulfilled Rule of Equal Division
(7) If the heir dies before the testator The relatives who are in the same degree shall
(8) If the heir repudiates the inheritance, there being inherit in equal shares. [Arts. 962[2], 987 and 1006,
no substitution, and no right of accretion takes CC]
place
(9) When the heir instituted is incapable of Exceptions: [Balane, 427-428]
succeeding, except in cases provided in the Civil (a) Rule of preference between Lines
Code (b) Distinction between legitimate and illegitimate
(10) Preterition – Intestacy may be total or partial filiation. The ratio under present law is 2:1. [Art
depending on whether or not there are legacies 983, in relation to Article 895 as amended by
or devises [Balane, 426] Article. 176, FC]
(c) Rule of division by line in the ascending line [Art.
Note: In all cases where there has been an institution 987 [2], CC]
of heirs, follow the ISRAI order: (d) Distinction between full-blood and half-blood
(a) If the Institution fails, Substitution occurs. relationship among brothers and sisters, as well
(b) If there is no substitute, the right of as nephews and nieces. [Art. 1006 and 1008, CC]
Representation applies in the direct descending (e) Right of representation.
line to the legitime if the vacancy is caused by
predecease, incapacity, or disinheritance.
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Rule of Barrier between the legitimate family and the Blood relationship is either full or half-blood. [Art.
illegitimate family (the iron-curtain rule) 967, CC]
The illegitimate family cannot inherit by intestate
succession from the legitimate family and vice-versa. Note: As among brothers and sisters and nephews
[Art. 992, CC] and nieces, there is a 2:1 ratio for full-blood and half-
blood relatives. Direct relatives are preferred. But
Rule of Double Share for full blood collaterals this distinction does not apply with respect to other
When full and half-blood brothers or sisters, collateral relatives.
nephews or nieces, survive, the full blood shall take a
portion in the inheritance double that of the half- INCAPACITY [ART. 968, CC]
blood. [Arts. 895 and 983, CC] General Rule: If there are several relatives of the
same degree, and one or some of them are unwilling
Note: or incapacitated to succeed, his portion shall accrue
(1) If one of the legitimate ascendants, illegitimate to the others of the same degree.
parents, legitimate children or illegitimate
children survives, the brother, sisters, nephews, Exception: When the right of representation should
and nieces (BSNN) are excluded. take place.
(2) If one of the legitimate ascendants, illegitimate
parents, legitimate children, illegitimate children Note: This accretion in intestacy takes place in case
or surviving spouse survives, the other collateral of predecease, incapacity, or renunciation among
relatives and the state are excluded. heirs of the same degree. The relatives must be in
(3) If any of the heirs concur in legitimes, then they the same relationship because of the Rule of
also concur in intestacy. Preference of Lines.
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Legitimate children. Surviving spouse, and the other relatives should be “illegitimate” because
Illegitimate children of the iron-curtain rule. [Art. 994, CC]
Divide the entire estate such that the surviving
spouse is deemed one legitimate child and each Illegitimate parents only
illegitimate child getting ½ of what the legitimate Entire estate goes to the illegitimate parents. [Art
child gets. [Art. 996, CC and Art. 176, FC] 993, CC]
Legitimate parents only Illegitimate parents and children of any kind (whether
Divide the entire estate equally. [Art. 985, CC] legitimate or illegitimate child)
Illegitimate parents are excluded and do not inherit;
Legitimate ascendants only (excluding parents) For the rule on the respective shares of the children,
Divide the entire estate equally but with the see numbers 1, 2 or 10, whichever is applicable.
observance of the rule of division by line. [Art. 987,
CC] Legitimate brothers and sisters only
Divide the entire estate such that full-blood
Legitimate parents and illegitimate children brothers/sisters gets a share double the amount of a
Legitimate parents get ½ of the estate, illegitimate half-blood brother or sister. [Art. 1004 and 1006, CC]
children get the other ½. [Art. 991, CC]
Legitimate brothers and sisters, nephews and nieces
Legitimate parents and surviving spouse Divide the entire estate observing the 2 is to 1 ratio
Legitimate parents get ½ of the estate; The surviving for full and half-blood relationships with respect to
spouse gets the other ½. [Art. 997,CC] the brothers and sisters, with the nephews and
nieces inheriting by representation, if proper. [Art.
Legitimate parents, surviving spouse and illegitimate 1005 & 1008, CC]
children
Legitimate parents get ½ of the estate; surviving Nephews and nieces only
spouse and the illegitimate child each get ¼ each, Divide the entire estate per capita, observing the 2 is
the latter to share among themselves if more than to 1 ratio. [Arts. 975 and 1008, CC]
one. [Art. 1000, CC]
Other collaterals (Arts. 1009 and 1010)
Illegitimate children only (a) Divide entire estate per capita.
th
Divide the entire estate equally. [Art. 988, CC] (b) Collateral relatives must be with the 5 degree of
consanguinity.
Illegitimate children and surviving spouse
Illegitimate children get ½ of the estate; the Note: the nearer relative excludes the more remote
surviving spouse gets the other ½. [Art. 998, CC] relatives.
Surviving spouse and legitimate brothers and sisters, Provisions Common to estate
nephews and nieces
Surviving spouse gets ½ of the estate, while the rest
and Intestate Succession
gets the other ½ with the nephews and nieces
inheriting by representation if proper. [Art. 1001, CC] RIGHT OF ACCRETION
Surviving spouse and illegitimate brothers and sisters, DEFINITION AND REQUISITES – [ARTS. 1015-1016]
nephews and nieces Definition of Accretion [Art. 1015, CC]
Surviving spouse gets ½ of the estate while the rest It is a right by virtue of which, when two or more
gets the other ½ with the nephews and nieces persons are called to the same inheritance, devise or
inheriting by representation, if proper; Note that all legacy, the part assigned to one who renounces or
cannot receive his share or who died before the
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testator is added or incorporated to that of his co- Cause Of Testamentary Succession Intestate
heirs, co-devisees, or co-legatees. Vacancy Legitime Free Portion Succession
Successio n Succession
Requisites [Tolentino p. 497-499]: n
(1) Unity of object and plurality of subjects (two or
more persons are called to the same inheritance Incapacity Represent Accretion Representa
or same portion thereof) -ation Intestate -
(2) Vacancy of share (one of the heirs dies before the Intestate Succession tion
testator, or renounces the inheritance, or is Successio Intestate
incapacitated) n Succession
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implied or from acts which one would have no (b) Imputing or Charging – crediting the donation as
right to do except in the capacity of an heir. an advance on the legitime (if the donee is a
(3) Implied acceptance - Within thirty days after the compulsory heir) or on the free portion (if the
court has issued an order for the distribution of donee is a stranger). [Balane p 522]
the estate in accordance with the Rules of Court, (c) Reduction – determining to what extent the
the heirs, devisees and legatees shall signify to donation will remain and to what extent it is
the court having jurisdiction whether they accept excessive or inofficious.
or repudiate the inheritance; if they do not do so (d) Restitution – returning or the act of payment of
within that time, they are deemed to have the excess to the mass of hereditary estate.
accepted the inheritance. [Art 1057, CC]
PERSONS OBLIGED TO COLLATE
Forms of Repudiation [Art. 1051, CC] General Rule: Compulsory heirs
(1) in a public instrument acknowledged before a Exceptions:
notary public; or (a) when the testator should have so expressly
(2) in an authentic document – equivalent of an provided [Art. 1062, CC]
indubitable writing or a writing whose (b) when the compulsory heir should have
authenticity is admitted or proved; or repudiated his inheritance [Art 1062, CC]
(3) by petition presented to the court having
jurisdiction over the testamentary or intestate Grandchildren who survive with their uncles, aunts,
proceeding or first cousins and inherit by right of representation
[Art 1064, CC]
Heirs in Two Capacities [Art. 1055, CC]
(1) If a person is called to the same inheritance as an Note: Grandchildren may inherit from their
heir by will and by law and he repudiates the grandparents in their own right, i.e., as heirs next in
inheritance in his capacity as a testamentary heir, degree, and not by right of representation if their
he will be considered to have also repudiated the parent repudiates the inheritance of the
inheritance as a legal heir. grandparent, as no living person can be represented
(2) If he repudiates it as a legal heir, without his except in cases of disinheritance and incapacity. In
being a testamentary heir, he may still accept it in this case, the grandchildren are not obliged to bring
the latter capacity. to collation what their parent has received
gratuitously from their grandparent.
COLLATION
CONCEPT OF COLLATION
Surviving spouse NOT obliged to collate.
(a) To collate is to bring back or to return to the
WHAT TO COLLATE
hereditary mass in fact or by fiction property
which came from the estate of the decedent, (a) Any property or right received by gratuitous title
during his lifetime by donation or other during the testator’s lifetime [Art 1061, CC]
gratuitous title but which the law considers as (b) All that they may have received from the
an advance from the inheritance. (Art 1061, CC) decedent during his lifetime. [Art 1061, CC]
(b) It is the act by virtue of which, the compulsory (c) Expenses incurred by the parents in giving their
heir who concurs with other compulsory heirs in children a professional, vocational or other career
the inheritance bring back to the common shall not be brought to collation unless the
hereditary mass the property which they may parents so provide, or unless they impair the
have received from the testator so that a division legitime; but when their collation is required, the
may be effected according to law and the will of sum which the child would have spent if he had
the testator. lived in the house and company of his parents
(c) In reducing inofficious donations, the last to be shall be deducted therefrom. [Art 1068, CC]
donated should be the first to be reduced. (d) Any sums paid by a parent in satisfaction of the
(d) Rationale for collation: If donations inter vivos will debts of his children, election expenses, fines, and
not be collated, then the rule on legitimes shall similar expenses shall be brought to collation.
be circumvented or disregarded. [Art 1069, CC]
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Expenses for support, education (only elementary (a) Judicial – Partition done by Court pursuant to an
and secondary), medical attendance, even in Order of Distribution which may or may not be
extraordinary illness, apprenticeship, ordinary based on a project of partition.
equipment, or customary gifts [Art. 1067, CC] (b) Extra-judicial – partition made by the decedent
himself by an act inter vivos or by will or by a third
Generally not imputable to legitime/ cannot be person entrusted by the decedent or by the heirs
collected, subject to exceptions themselves. [Paras]
(a) Expenses incurred by parents in giving their
children professional, vocational or other career PARTITION INTER VIVOS (ASKED IN ‘85)
unless the parents so provide, or unless they It is one that merely allocates specific items or pieces
impair the legitime. [Art. 1067, CC] of property on the basis of the pro-indiviso shares
(b) Wedding gifts by parents and ascendants, fixed by law or given under the will to heirs or
consisting jewelry, clothing and outfit, except successors. (Art. 1080, cc)
when they exceed 1/10 of the sum disposable by
will. [Art. 1070, CC] Who may effect partition
(c) Neither shall donations to the spouse of the child (1) The Decedent, during his lifetime by an act inter
be brought to collation; but if they have been vivos or by will [Art.1080, CC]
given by the parent to the spouses jointly, the (2) The decedent’s heirs [Art.1083, CC]
child shall be obliged to bring to collation one- (3) A competent court [Art. 1083,CC]
half of the thing donated. [Art. 1066, CC] (4) A third person not an heir designated by the
decedent [Art.1081, CC]
Note: Parents are not obliged to bring to collation in
the inheritance of their ascendants any property Who Can Demand Partition
which may have been donated by the latter to their (1) Compulsory heir
children. [Art 1065, CC] (2) Voluntary heir upon fulfillment of condition if any
[Art 1084, CC]
PARTITION AND DISTRIBUTION OF ESTATE (3) Legatee or devisee
PARTITION (4) Any person who has acquired interest in the
Concept estate
(a) Separate, Divide, Assign. Partition is the
separation, division and assignment of a thing When Partition Cannot Be Demanded
held in common among those to whom it may (1) When expressly Prohibited by the testator for a
belong. The thing itself or its value may be period not exceeding 20 years [Art 1083, CC]
divided. [Art. 1079, CC] (2) When the co-heirs Agreed that the estate shall
(b) Owned in common. Before partition, the whole not be divided for a period not exceeding 10
estate of the decedent is owned in common by years, renewable for another 10 years
the heirs. [Art 1078, CC] (3) When Prohibited by law
(c) Thing or value may be divided. [Art 1079] (4) When to partition the estate would render it
(d) Acts deemed partition. Every act which is intended unserviceable for the use for which it is intended
to put an end to indivision among heirs and
legatees or devisees is deemed a parition, Prohibition To Partition
although it should purport to be a sale, an (1) The prohibition to partition for a period not
exchange, a compromise, or any other exceeding 20 years can be imposed on the
transaction. [Art 1082, CC] legitime.
(2) If the prohibition to the partition is for more than
A void partition may be valid if: 20 years, the excess is void.
(1) the will was in fact a partition (3) Even if a prohibition is imposed, the heirs by
(2) the beneficiaries of the void will were legal heirs mutual agreement can still make the partition.
The titles of acquisition or ownership of each Effects of Inclusion of Intruder in Partition [Art 1108,
property shall be delivered to the co-heir to whom CC]
said property has been adjudicated. [Art. 1089 CC] (1) Between a true heir and several mistaken heirs –
partition is void.
PARTITION INTER VIVOS (2) Between several true heirs and a mistaken heir –
Judicial v. Extrajudicial Partition transmission to mistaken heir is void
(3) Through error or mistake, share of true heir is
allotted to mistaken heir – partition shall not be
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rescinded unless there is bad faith or fraud on the proportionately among the heirs. [Art. 1095
part of the other persons interested, but the latter CC]
shall be proportionately obliged to pay the true
heir of his share. The partition with respect to the
mistaken heir is void. [Sempio-Dy] End of Warranty
The obligation of warranty among co-heirs shall
Right of Redemption in Partition cease in the ff. cases:
(a) Should any of the heirs sell his hereditary rights (a) The testator himself has made the partition
to a stranger before the partition, any or all of the (1) Unless it appears, or it may be reasonably
co-heirs may be subrogated to the rights of the presumed, that his intention was otherwise,
purchaser by reimbursing him for the price of the but the legitime shall always remain
sale, provided they do so within the period of one unimpaired.
month from the time they were notified in writing (b) When it has been so expressly stipulated in the
of the sale by the vendor [Art. 1088, CC] agreement of partition
(b) Strangers – those who are not heirs on the (1) Unless there has been bad faith
succession. (c) When the eviction is due to a cause subsequent to
the partition, or has been caused by the fault of
EFFECTS OF PARTITION the distributee of the property. (Art. 1096, CC)
Effect
A partition legally made confers upon each heir the NULLIFICATION OF PARTITION
exclusive ownership of the property adjudicated to Causes for Rescission or Annulment
him [Art 1091, CC] (a) A partition may be rescinded or annulled for the
same causes as contracts. [Art 1097, CC]
Warranty (b) A partition, judicial or extra-judicial, may also be
(a) After the partition has been made, the co-heirs rescinded on account of lesion, when any one of
shall be reciprocally bound to warrant the title to, the co-heirs received things whose value is less by
and the quality of, each property adjudicated at least one-fourth, than the share to which he is
[Art. 1092 CC] entitled, considering the value of the things at the
(b) The reciprocal obligation of warranty referred to time they were adjudicated [Art. 1098, CC]
in the preceding article shall be proportionate to (1) This article applies only to cases of partition
the respective hereditary shares of the co-heirs; among-coheirs
(1) But if any one of them should be insolvent, the (2) Lesion is the injury suffered in consequence of
other co-heirs shall be liable for his part in the inequality of situation by one party who does
same proportion, deducting the part not receive the full equivalent for what she
corresponding to the one who should be gives in a sale or any commutative contract
indemnified. (c) The partition made by the testator cannot be
(2) Those who pay for the insolvent heir shall impugned on the ground of lesion, except when
have a right of action against him for the legitime of the compulsory heirs is thereby
reimbursement, should his financial condition prejudiced, or when it appears or may be
improve [Art. 1093 CC] reasonably be presumed, that the intention of the
(c) An action to enforce the warranty among the co- testator was otherwise. [Art. 1099, CC]
heirs must be brought within ten years from the (d) Preterition of a compulsory heir in the partition
date the right of action accrues. [Art. 1094 CC] [Art 1104, CC]:
(d) If a credit should be assigned as collectible, the (1) Partition shall not be rescinded unless bad
co-heirs shall not be liable for the subsequent faith or fraud on the part of other heirs is
insolvency of the debtor of the estate, but only for proved.
his insolvency at the time the partition is made. [Art (2) The culpable heirs shall share in the damages
1095, CC] of the prejudiced compulsory heir
(e) The warranty of the solvency of the debtor can proportionately.
only be enforced during the five years following (e) A partition which includes a person believed to be
the partition. an heir, but who is not, shall be void only with
(f) Co-heirs do not warrant bad debts, if so known to, respect to such person. [Art. 1105 CC]
and accepted by the distributee.
(1) But if such debts are not assigned to a co-heir, (a) The action for rescission on account of lesion shall
and should be collected, in whole or in part, prescribe after four years from the time the
the amount collected shall be distributed partition was made. [Art. 1100, CC]
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(b) The heir who is sued shall have the option of 5 years from To enforce warranty of solvency
indemnifying the plaintiff for the loss, or partition of debtor of the estate at the
consenting to a new partition time partition is made
(c) Indemnity may be made: 4 years form Action for rescission of partition
(1) By payment in cash or partition on account of lesion
(2) By the delivery of a thing of the same kind
and quality as that awarded to the plaintiff.
(d) If a new partition is made, it shall affect neither
those who have not been prejudiced nor those
who have not received more than their just share
[Art. 1101, CC]
(e) An heir who has alienated the whole or a
considerable part of the real property adjudicated
to him cannot maintain an action for rescission on
the ground of lesion, but he shall have a right to
be indemnified in cash [Art. 1102, CC]
(f) The omission of one or more objects or securities
of the inheritance shall not cause the rescission of
the partition on the ground of lesion, but the
partition shall be completed by the distribution of
the objects or securities which have been omitted.
[Art. 1103, CC]
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with the policy of the law that a corporation should Exceptions: (1) Where immovable property or real
manage its own affairs. rights are contributed:
(a) The contract must appear in a public instrument;
Also, the arrangement would allow corporate and
property to be subject to risks not contemplated by (b) Attached to such instrument must be an
the stockholders when they originally invested. inventory, signed by the parties, of the property
[Mendiola v. CA (2006)] contributed. [Articles 1771 and 1773]
Although a corporation cannot enter into a (2) Where the capital is at least P3,000, in money or
partnership contract, it may, however, engage in a property:
joint venture with others [Auerbach vs. Sanitary (a) The contract must appear in a public
Wares Manufacturing Corp. (1989)]. instrument; and
(b) It must be recorded in the SEC. Failure to
There is no prohibition against a partnership being a comply with these requirements, however,
partner in another partnership. [De Leon (2010)] does not affect the liability of the partnership
and the partners to third persons. [Articles
OBJECT OF THE CONTRACT 1768 and 1772]
OBJECT OF UNIVERSAL PARTNERSHIP
A universal partnership may refer to: DURATION OF THE CONTRACT
(1) All present property: COMMENCEMENT
(a) The partners contribute all the property A partnership begins from the moment of the
which belongs to them to a common fund, execution of the contract, unless it is otherwise
with the intention of dividing the same stipulated. [Article 1784]
among themselves, as well as the profits they
may acquire therewith. [Article 1778] TERM
(b) The property contributed includes all those As to period, a partnership may either be:
belonging to the partners at the time of the (1) For a fixed term or particular undertaking; or
constitution of the partnership. (2) At will, the formation and dissolution of which
(c) A stipulation for the common enjoyment of depend on the mutual desire and consent of the
any other profits may also be made. parties. Any one of the partners may, at his sole
However, the property which the partners pleasure, dictate the dissolution of the
may acquire subsequently by inheritance, partnership, even in bad faith, subject to liability
legacy or donation cannot be included in for damages. [Ortega v. CA (1995)]
such stipulation, except the fruits thereof.
[Article 1779] EXTENSION
(2) All the profits: A partnership term may be extended by:
(a) It comprises all that the partners may acquire (1) Express renewal of the agreement; or
by their industry or work during the existence (2) Implied renewal, when the requisites concur:
of the partnership. (a) The partnership is for a fixed term or
(b) Only the usufruct over the property of the particular undertaking;
partners passes to the partnership. [Article (b) It is continued after the termination of the
1780] fixed term or particular undertaking without
When the articles of universal partnership any express agreement.
does not specify its nature (all present
property or all the profits), the partnership A continuation of the business by the partners or
will be considered as one only of all the such of them as habitually acted therein during the
profits. [Article 1781] term, without any settlement or liquidation of the
partnership affairs, is prima facie evidence of a
OBJECT OF PARTICULAR PARTNERSHIP continuation of the partnership. The effect of such
A particular partnership has for its object determinate continuation is that the right and duties of the
things, their use or fruits, or a specific undertaking, or partners remain the same as they were at such
the exercise of a profession or vocation. [Article 1783] termination of the period, but this time, the
partnership is considered to be at will. [Article 1785]
FORM OF THE CONTRACT
General rule: The contract may be constituted in any
form. [Article 1771]
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regard to the share of the latter in the DISTINGUISHED FROM OTHER CONTRACTS
partnership; Partnership Joint Venture
(11) Ostensible, who takes active part in the business
of the partnership and is known by the public; Operates with firm name Operates with no firm
(12)Secret, who takes active part in the business, but and legal personality name and legal
is unknown to the third persons as a partner; personality
(13) Silent, who does not take active part in the business, but may be known to be a partner by third persons;
(14)Dormant, who does not take active part in the Generally relates to a Usually limited to a single
business and is not known or held out as a continuing business of transaction
partner; various transactions of a
(15)Original, who has been a partner since the certain king
constitution of the partnership;
(16)Incoming, who is about to be taken as a member Corporations may not Corporations may enter
into an existing partnership; enter into a partnership into joint ventures
(17) Retiring, who is withdrawing from the
partnership. It would seem therefore that under Philippine law, a
joint venture is a form of partnership and should thus
Industrial Partner Capitalist Partner be governed by the laws of partnership. [Auerbach vs.
Sanitary Wares Manufacturing Corp. (1989)]
Form of contribution
Partnership Co-Ownership
Industry Money or property
Generally created by Generally created by law,
Share in profits either express or implied and may exist even
contract without a contract
Just and equitable share According to agreement;
if none, in proportion to Has a separate juridical Has no separate juridical
contribution personality personality
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Partner cannot dispose of Stockholder has the right Capital is contributed Capital is not contributed,
his interest so as to make to transfer his shares although fees are
the assignee a partner, without consent of others collected from members
without consent of others
Partnership is primarily The members are liable
Duration has no limitation The term is 50 years, but liable; the partners are individually for debts
may be extended liable only subsidiarily which they authorized or
ratified
May be dissolved at any May only be dissolved with
time by one or all of the the consent of the state Share in profits may be Share in profits is equal
partners stipulated; otherwise, in
proportion to contribution
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SUIT FOR DAMAGES Without such agreement, they shall be kept at the
Before a partner may sue another for alleged principal place of business of the partnership.
fraudulent management and resultant damages,
liquidation must first be effected to determine the Every partner shall, at any reasonable hour, have
extent of the damage. Without liquidation of access to and may inspect and copy any of them.
partnership affairs, a partner cannot claim damages [Article 1805]
[Soncuya v. De Luna (1939)].
BASIS OF RIGHT
RESPONSIBILITY OF THE PARTNERSHIP TO Since a partner is a co-owner of partnership
PARTNERS properties, which include the books, and has a right
In the absence of any stipulation to the contrary, to participate in the management of its affairs, the
every partner is an agent of the partnership for the books should not be in the exclusive custody or
purpose of its business. As such, it is responsible to control of any one partner [De Leon (2010)].
every partner:
(1) For amounts, and the corresponding interest REASONABLE HOUR
from the time the expenses were made, which he "Any reasonable hour" has been interpreted to mean
may have disbursed on behalf of the partnership; reasonable hours on business days throughout the
(2) For obligations he may have contracted in good year, not merely during some arbitrary period of a
faith in the interest of the partnership business; few days chosen by the managing partner [Pardo v.
and Lumber Co., (1925)].
(3) For risks in consequence of the management of
the partnership. [Article 1796] RIGHT TO A FORMAL ACCOUNT
Any partner shall have the right to a formal account
as to partnership affairs:
(1) If he is wrongfully excluded from the partnership
business or possession of its property by his co-
partners;
Rights and obligations (2) If the right exists under the terms of any
agreement;
of partners inter se (3) If, without his consent, a partner has derived
profits from any transaction connected with the
RIGHT TO ASSOCIATE ANOTHER IN SHARE formation, conduct, or liquidation of the
Every partner may associate another person with him partnership or from any use of partnership
in his share. property;
(4) Whenever other circumstances render it just and
The admission of the associate to the partnership, reasonable [Article 1809].
however, requires the consent of all the other
partners, even if the partner having an associate is a ACCRUAL OF RIGHT
managing partner [Article 1804]. General rule: The right to a formal account of
partnership affairs accrues only when the
SUBPARTNERSHIP partnership is dissolved. Ample protection is already
The arrangement refers to a contract of provided.
subpartnership, which is a partnership within a
partnership, distinct and separate from the main Exceptions: In special and unusual cases under
partnership [De Leon (2010)]. The associate is Article 1809, formal accounting may be demanded
sometimes referred to as a subpartner. even before dissolution.
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upon the dissolution when the final accounting is (b) Dissolution by judicial decree [Article 1831].
done [Fue Leung v. IAC (1989)]. (2) A partner's right in such property is not
assignable, except when all the partners assign
NATURE OF ACTION their rights in the same property.
The action for accounting is an action in personam, (3) The right is not subject to attachment or
regardless of the incidental fact that some of the execution, except on claim against the
assets of the partnership are real property [Emnace v. partnership. Also, in case of such attachment, the
CA (2001)]. partners, or any of them, or the representatives of
a deceased partner, cannot claim any right under
PROPERTY RIGHTS OF PARTNERS the homestead or exemption laws;
IN GENERAL (4) The right is also not subject to legal support
The property rights of a partner are: under Article 291 [Article 1811].
(1) Rights in specific partnership property;
(2) Interest in the partnership; and A partner's right in specific property cannot be
(3) Right to participate in the management [Article separately assigned, since it is impossible to
1810]. determine the extent of his beneficial interest in the
property until after the liquidation of partnership
PARTNERSHIP PROPERTY AND PARTNERSHIP CAPITAL affairs.
Capital Property
It is also not subject to support precisely because it is
With constant value Value varies with market a property of the partnership and not of the
conditions individual partners.
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(4) Wrongful act or omission of any partner acting for (2) A person admitted as a partner into an existing
partnership affairs makes the partnership liable partnership is liable for all the obligations of the
[Article 1822]. partnership arising before his admission, except
(5) Partnership is bound to make good losses for that his liability shall be satisfied only out of
wrongful acts or misapplications of partners partnership property, unless there is a stipulation
[Article 1823]. to the contrary.
Upon exhaustion of its assets, all partners are liable LIABILITY OF PARTNERS FOR PARTNERSHIP
pro rata with all their property. CONTRACTS
ACTS APPARENTLY FOR THE CARRYING ON OF USUAL
Any partner may enter into a separate obligation to BUSINESS
perform a partnership contract [Article 1816]. General rule: Every partner is an agent of the
partnership for the purpose of its business and any
NATURE OF INDIVIDUAL LIABILITY act of a partner which is apparently for the carrying
The pro-rating should be understood to mean on of the usual business of the partnership binds the
equally or jointly, not proportionally [De Leon (2010), latter, including the execution of any instrument in
citing Article 1839(4); note, however, that this the partnership name [1st par., Article 1818].
conclusion does not find textual support in Article
1816]. Exception: The partnership is not bound when:
(1) The partner has in fact no authority to act; AND
The fact that a partner has left the country and the (2) The person with whom he deals has knowledge of
payment of his share of the liability cannot be such fact.
enforced [Co-Pitco v. Yulo (1907)] or his liability is
condoned by the creditor [Island Sales v. United ACTS NOT APPARENTLY FOR CARRYING ON OF THE USUAL
Pioneers (1975)] cannot increase the liability of the BUSINESS
other partners. General rule: Acts of a partner which is not apparently
for carrying on of the usual business does not bind
The liability is subsidiary or secondary. It only arises the partnership.
upon exhaustion of partnership assets. However,
they may be joined as party defendants in the action Exception: The partnership is bound if the other
against the partnership, subject to their right to prior partners authorized him to do the act.
exhaustion of partnership assets [Cia. Maritima v.
ACTS OF STRICT DOMINION
Muñoz (1907)].
General rule: One or some of the partners have no
authority to do the following acts of strict dominion:
General rule: The partners are liable pro-rata and (a) Assign the partnership property in trust for
subsidiarily, with all their property. creditors or on the assignee's promise to pay the
debts of the partnership;
Exceptions: (b) Dispose of the goodwill of the business;
(1) A third person who transacted with the (c) Do any other act which makes it impossible to
partnership can hold the partners solidarily liable carry on the ordinary business of the partnership;
for the whole obligation if the case falls under (d) Confess a judgment;
Articles 1822 or 1823 [Muñasque v. CA (1985)]. (e) Enter into a compromise concerning a
partnership claim or liability;
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The partnership may recover it if the act does not LIABILITY IN CASE OF PARTNERSHIP BY
bind it under 1st par., Article 1818, unless the ESTOPPEL
purchaser or his assignee is: PARTNER BY ESTOPPEL
(1) A holder for value; AND A person, not a partner, may become a partner by
(2) Without knowledge that the act exceeded estoppel, and be liable as a partner, when, by words,
authority. spoken or written, or conduct, he:
(1) Directly represents himself to anyone as a partner
TITLE IN THE NAME OF ONE OR MORE OR ALL THE in an existing or non-existing partnership; or
PARTNERS, (2) Indirectly represents himself by consenting to
OR IN A THIRD PERSON IN TRUST FOR THE PARTNERSHIP another representing him as such partner. [Article
A partner may convey equitable title in the 1825]
partnership name or in his own name, when the act
is authorized under 1st par., Article 1818. LIABILITY OF PARTNER BY ESTOPPEL
A partner by estoppel is liable:
TITLE IN THE NAMES OF ALL THE PARTNERS (1) To any person who extended credit to the
The conveyance must be executed by all of them to partnership, actual or apparent, relying on his
pass all their rights in the property [Article 1819]. representation; and
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(2) In case the representation was made publicly, to the plaintiff might have learned of the truth or
any person, who extended such credit, whether or untruth of the representations.
not the communication to said creditor was made
with the knowledge of the partner. Persons who knowingly assume to act as a
corporation without authority to do so are liable as
NATURE OF LIABILITY general partners for all debts, liabilities and
He is liable in the following manner: damages incurred. [Section 21, Corporation Code] A
(1) When there is an existing partnership and all the partnership de facto is created.
partners consented to the representation, a
partnership liability results, and the partner by LIABILITY OF INCOMING PARTNER
estoppel is liable as though he were a partner; A person admitted as a partner is liable as the other
(2) When there is an existing partnership and not all partners for obligations subsequent to his admission.
the partners consented, or when there is no
existing partnership and all those represented as He is also liable for obligations incurred before his
partners consented to the representation, he is admission, but will be satisfied only out of the
liable jointly and pro rata with those who partnership property, unless otherwise stipulated.
consented to the representation; (Article 1826)
(3) When there is an existing partnership but none of
the partners consented, or when there is no Ratio:
existing partnership and not all of those (1) The new partner partakes of the benefits of the
represented as partners consented to the partnership property and an already established
representation, he is liable separately. business.
(2) He has every means of obtaining full knowledge
EFFECTS OF ACTS OF PARTNER BY ESTOPPEL of the debts of the partnership and remedies that
The acts of a partner by estoppel have the following amply protect his interest [De Leon (2010)].
effects:
(1) A person, thus representing himself as a partner However, an incoming partner may fully assume the
of other persons, becomes an agent of the latter, obligations of a retiring partner.
in the same manner as though he were a partner
in fact, with respect to persons who rely upon the NOTICE TO OR KNOWLEDGE OF THE
representation. PARTNERSHIP
(2) When all the members of the existing partnership The following operate as notice to or knowledge of
consent to the representation, a partnership act the partnership:
or obligation results. (1) Notice to any partner of any matter relating to
(3) In all other cases, only a joint act or obligation partnership affairs;
results. [Article 1825] (2) Knowledge of the partner acting in the particular
matter acquired while a partner;
No real partnership is created by estoppel. It is only (3) Knowledge of the partner acting in the particular
with respect to third persons that partnership by matter then present to his mind; and
estoppel is recognized. (4) Knowledge of any other partner who reasonably
could and should have communicated it to the
ESTABLISHING LIABILITY acting partner.
The basic elements in connection with establishment
of liability as a partner if based on the doctrine of These do not apply in case of fraud on the
estoppel must encompass: partnership committed by or with the consent of the
(1) Proof by plaintiff that he was individually aware of partner [Article 1821].
the defendant's representations as to his being a
partner or that such representations were made PREFERENCE OF PARTNERSHIP CREDITORS
by others and not denied or refuted by the Partnership creditors are preferred over personal
defendant; creditors of the partners with respect to partnership
(2) Reliance on such representations by the plaintiff; property.
and
(3) Lack of any denial or refutation of the statements However, personal creditors may ask the attachment
by the defendant; such denial need not precede and public sale of the share of the partner debtor in
plaintiff's acting therein if the denial was the partnership assets. [Article 1827]
forthcoming promptly upon hearing of the
representations, and if, by prudence and diligence
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Ratio: The partnership, as a legal entity distinct from or after the termination of any specified term or
its members, should apply its property to the particular undertaking;
payment of its debts in preference to the claim of any (4) By the expulsion of any partner from the business
partner or his individual creditors. bona fide in accordance with such a power
conferred by the agreement between the
partners.
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any degree due to his connection with it. [Article (3) The person or partnership continuing the
1834] business.
CASES WHERE PARTNERSHIP IS NOT BOUND Such agreement may be inferred from the course of
Any act of a partner after dissolution in no case binds dealing between the creditor having knowledge of
the partnership in the following cases: the dissolution and the person or partnership
(1) Where the partnership is dissolved because it is continuing the business.
unlawful to carry on the business, unless the act
is appropriate for winding up partnership affairs; In case of dissolution by death, the individual
(2) Where the partner has become insolvent; or property of a deceased partner is liable for
(3) Where the partner has no authority to wind up obligations of the partnership incurred while he was
partnership affairs, except by a transaction with a partner, after payment of his separate debts.
one who: [Article 1835]
(a) Had extended credit to the partnership prior to
dissolution and had no knowledge or notice of his WINDING UP PARTNERS
want of authority; or WHO MAY WIND UP
(b) Had not extended credit to the partnership prior The following partners have the right to wind up the
to dissolution, and, having no knowledge or partnership affairs:
notice of his want of authority, the fact of his want (1) Those designated in an agreement;
of authority has not been advertised. (2) Those who have not wrongfully dissolved the
partnership; or
PARTNERSHIP BY ESTOPPEL AFTER DISSOLUTION (3) The legal representative of the last surviving
Article 1834 does not affect the liability under Article partner, who was not insolvent.
1825 of any person who, after dissolution, represents
himself or consents to another representing him as a However, any partner or his legal representative or
partner in a partnership engaged in carrying on assignee may obtain winding up by the court, upon
business [Article 1834]. cause shown. [Article 1836]
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partners [referred to as the right under 1st par., Article Where a partnership contract is rescinded on such
1837]. grounds, the party entitled to rescind, without
prejudice to any other right, is entitled:
In case of dissolution by bona fide expulsion of a (1) After satisfying partnership liabilities to third
partner, and the expelled partner is discharged from persons, to a lien on, or right of retention of, to
all partnership liabilities, either by payment or the surplus of the partnership property:
agreement to that effect (Article 1835), he shall (a) For any sum of money paid by him for the
receive only the net amount due him from the purchase of an interest in the partnership; and
partnership. (b) For any capital or advances contributed by
him.
DISSOLUTION IN CONTRAVENTION OF THE AGREEMENT (2) After satisfying partnership liabilities to third
Rights of partner who has not caused the dissolution persons, to stand in the place of partnership
wrongfully: creditors for any payments made by him in
(a) To demand the right under 1st par., Article 1837; respect of the partnership liabilities; and
(b) To be indemnified for damages for breach of the (3) To be indemnified by the person guilty of the
agreement against the partner who caused the fraud or making the representation against all
dissolution wrongfully; debts and liabilities of the partnership. [Article
(c) To continue the business in the same name, by 1838]
themselves or jointly with others, during the
agreed term for the partnership and for that SETTLING OF ACCOUNTS BETWEEN PARTNERS
purpose may possess the partnership property Subject to any agreement to the contrary, the
provided they: following rules shall be observed in settling accounts
(i) Secure the payment by bond approved by the between partners after dissolution.
court; or
(ii) Pay any partner who has caused the COMPOSITION OF PARTNERSHIP ASSETS
dissolution wrongfully the value of his interest The assets of the partnership are:
in the partnership, less any damages (1) The partnership property; and
recoverable, and indemnity against all present (2) The contributions of the partners necessary for
or future partnership liabilities. the payment of all the liabilities.
Rights of partner who has caused the dissolution In accordance with the subsidiary liability of the
wrongfully: partners, the partnership property shall be applied
(a) If the business is not continued, all the rights 1st first to satisfy any liability of the partnership.
par., Article 1837, subject to liability for damages;
(b) If the business is continued, the right, as against AMOUNT OF CONTRIBUTION FOR LIABILITIES
his co-partners and all claiming through them, to: The rules on distribution of losses [Article 1979] shall
(i) Ascertainment, without considering the value determine the contributions of the partners. As such:
of the goodwill of the business, and payment to (1) The contribution shall be in conformity with the
him in cash the value of his partnership agreement.
interest, less any damage, or have the (2) If only the share in profits has been stipulated, the
payment secured by a bond approved by the contribution shall be in the same proportion.
court; and (3) In the absence of any stipulation, the contribution
(ii) Be released from all existing liabilities of the shall be in proportion to the capital contribution.
partnership. [Article 1837]
ENFORCEMENT OF CONTRIBUTION
The goodwill of a business may be defined to be the The following persons have the right to enforce the
advantage which it has from its establishment or contributions:
from the patronage of its customers, over and above (1) An assignee for the benefit of creditors;
the mere value of its property and capital. The (2) Any person appointed by the court; or
goodwill (which includes the firm name) is part of the (3) To the extent of the amount which he has paid in
partnership assets and may be subject of sale. [De excess of his share of the partnership liability, any
Leon (2010)] partner or his legal representative.
RIGHTS OF PARTNERS IN CASE OF RESCISSION The individual property of a deceased partner shall
A partner, induced by fraud or misrepresentation to be liable for the contributions.
become a partner, may rescind the contract.
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ORDER OF APPLICATION OF ASSETS with the consent of the retired partner or the
The partnership liabilities shall rank, in order of representative of the deceased partner, without
payment, as follows: assignment of their rights to partnership
(a) Those owing to creditors other than partners; property.
(b) Those owing to partners other than for capital (3) When the cause of dissolution is the assignment
and profits; by all the partners or their representatives of their
(c) Those owing to partners in respect of capital; rights in partnership property to one or more third
(d) Those owing to partners in respect of profits. persons who promise to pay the debts and who
continue the business of the partnership.
DOCTRINE OF MARSHALING OF ASSETS
When partnership property and the individual LIABILITY OF A NEW PARTNER
properties of the partners are in possession of a court The liability to the creditors of the dissolved
for distribution: partnership of a new partner in the partnership
(1) Partnership creditors shall have priority on continuing the business shall be satisfied out of the
partnership property; and partnership property alone. However, he may,
(2) Separate creditors on individual property, saving through agreement, assume individual liability.
the rights of lien of secured creditors.
(3) Anything left from either shall be applied to PRIORITY OF CREDITORS OF DISSOLVED PARTNERSHIP
satisfy the other. The creditors of dissolved partnership have prior
right to any claim of the retired partner or the
DISTRIBUTION OF PROPERTY OF INSOLVENT PARTNER representative of the deceased partner against the
Where a partner has become insolvent or his estate person or partnership continuing the business.
is insolvent, the claims against his separate property
shall rank in the following order: Nothing in this article shall be held to modify any
(1) Those owing to separate creditors; right of creditors to set aside any assignment on the
(2) Those owing to partnership creditors; ground of fraud.
(3) Those owing to partners by way of contribution.
[Article 1839] EFFECT OF CONTINUING USE OF PARTNERSHIP NAME
The use by the person or partnership continuing the
RIGHTS OF CREDITORS OF DISSOLVED business of the partnership name, or the name of a
PARTNERSHIP deceased partner as part thereof, shall not of itself
CREDITORS OF DISSOLVED PARTNERSHIP make the individual property of the deceased partner
AS CREDITORS OF NEW PARTNERSHIP liable for any debts contracted by such person or
In the following cases, creditors of the dissolved partnership. [Article 1840]
partnership are also creditors of the person or
partnership continuing the business: RETIRED OR REPRESENTATIVE OF DECEASED
(1) When the business is continued without PARTNER
liquidation, and the cause of dissolution is: Unless otherwise agreed upon, when any partner
(a) Admission of a new partner into the existing retires or dies, and the business is continued without
partnership; any settlement of accounts as between him or his
(b) Retirement or death of any partner, and his estate and the person or partnership continuing the
rights to partnership property are assigned to: business, he or his legal representative as against
(i) Two or more of the partners; or such person or partnership, subject to the prior rights
(ii) One or more of the partners and one or of creditors of the dissolved partnership:
more third persons. (1) May have the value of his interest at the date of
(c) Retirement of all but one partner, and their dissolution ascertained; and
rights to partnership property are assigned to (2) Shall receive as an ordinary creditor:
the remaining partner, who continues the (a) An amount equal to the value of his interest in
business, either alone or with others; the dissolved partnership with interest; or
(d) Wrongful dissolution by any partner, and the (b) At his option or at the option of his legal
remaining partners continue the business, representative, in lieu of interest, the profits
either alone or with others; attributable to the use of his right in the property of
(e) Expulsion of a partner, and the remaining the dissolved partnership. [Article 1841]
partners continue the business, either alone or
with others. RIGHT TO AN ACCOUNT
(2) When the cause of dissolution is the retirement or The right to an account of his interest shall accrue to
death of any partner, and business is continued any partner, or his legal representative, at the date of
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General Partner Limited Partner A limited partnership is formed if there has been
substantial compliance in good faith with the
Not assignable Assignable requirements.
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MANAGEMENT OF LIMITED PARTNERSHIP The acts enumerated are acts of strict dominion.
A limited partner shall not become liable as a
general partner unless, in addition to the exercise of OBLIGATIONS OF A LIMITED PARTNER
his rights and powers as a limited partner, he takes OBLIGATIONS RELATED TO CONTRIBUTION
part in the control of the business [Article 1848]. The contributions of a limited partner may be cash or
property, but not services [Article 1845].
MANAGEMENT BY GENERAL PARTNERS
Only the general partners have the right to manage A limited partner is liable for partnership obligations
the partnership. The limited partners are not so when he contributes services instead of only money
entitled. or property to the partnership [De Leon (2010)].
LIABILITY OF LIMITED PARTNER FOR PARTICIPATING IN A limited partner is liable to the partnership:
CONTROL (1) For the difference between his actual contribution
A limited partner is liable as a general partner (i.e., and that stated in the certificate as having been
subsidiarily liable) for the obligations of the made;
partnership if he takes part in the control of the (2) For any unpaid contribution which he agreed in
business. The control contemplated is active the certificate to make in the future at the time
participation in the management of the business. It and on the conditions stated in the certificate. [1st
does not contemplate mere giving of advice to par., Article 1858]
general partners which may be followed or not.
He holds as trustee for the partnership:
The abstinence of the limited partner from (1) Specific property stated in the certificate as
participation in the transaction of the business of the contributed by him, but which was not
firm is essential to his exemption from personal contributed or which has been wrongfully
liability. [De Leon (2010)]. returned; and
(2) Money or other property wrongfully paid or
POWERS OF GENERAL PARTNER conveyed to him on account of his contribution.
General rule: A general partner shall have the rights [2nd par., Article 1858]
and powers and be subject to all restrictions and
liabilities of a partner in a partnership without The liabilities under Article 1858 can be waived or
limited partners. compromised only by the consent of all members.
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General rule: A limited partner, irrespective of the RIGHT TO ASK FOR DISSOLUTION
nature of his contribution has only the right to A limited partner may have the partnership dissolved
demand and receive cash in return for his and its affairs wound up:
contribution. (1) When his demand for the return of his
contribution is denied although he has a right to
Exceptions: He may receive his contribution in a form such return;
other than cash when: (2) When he has such right, but his contribution is
(1) There is a statement in the certificate to the not paid because the partnership property is
contrary; or insufficient to pay its liabilities. [Article 1857]
(2) All the members of the partnership consent.
CAUSES OF DISSOLUTION OF LIMITED
PREFERENCE OF LIMITED PARTNERS PARTNERSHIP
General rule: The limited partners stand on equal A limited partnership is dissolved in much the same
footing as to their: way and causes as an ordinary partnership [De Leon
(1) Compensation by way of income; (2010)].
(2) Return of contribution; or
(3) Any other matter. General rule: The retirement, death, insolvency,
insanity or civil interdiction of a general partner
Exception: By an agreement of all the partners dissolves the partnership.
(general and limited) in the certificate, priority or
preference may be given to some limited partners Exception: It is not so dissolved when the business is
over others with respect to the matters enumerated. continued by the remaining general partners:
[Article 1855] (1) Under a right to do so stated in the certificate; or
(2) With the consent of all members. [Article 1860]
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On the death of a limited partner, his executor or (3) An additional limited partner is admitted;
administrator shall have: (4) A person is admitted as a general partner;
(1) All the rights of a limited partner for the purpose (5) A general partner retires, dies, becomes insolvent
of settling his estate; and or insane, or is sentenced to civil interdiction and
(2) The power to constitute an assignee as a the business is continued;
substituted limited partner, if the deceased was (6) There is a change in the character of the business
so empowered in the certificate. of the partnership;
(7) There is a false or erroneous statement in the
The estate of a deceased limited partner shall be certificate;
liable for all his liabilities as a limited partner. [Article (8) There is a change in the time as stated in the
1861] certificate for the dissolution of the partnership or
for the return of a contribution;
SETTLEMENT OF ACCOUNTS (9) A time is fixed for the dissolution of the
ORDER OF PAYMENT partnership, or the return of a contribution, no
In settling accounts after dissolution, the liabilities of time having been specified in the certificate; or
the partnership shall be entitled to payment in the (10) The members desire to make a change in any
following order: other statement in the certificate in order that it
(1) Those to creditors, including limited partners shall accurately represent the agreement among
except those on account of their contributions, in them.
the order of priority as provided by law;
(2) Those to limited partners in respect to their share REQUIREMENTS FOR AMENDMENT OR CANCELLATION
of the profits and other compensation by way of To amend or cancel a certificate:
income in their contributions; (1) The amendment or cancellation must be in
(3) Those to limited partners in respect to the capital writing;
of their contributions; (2) It must be signed and sworn to by all the
(4) Those to general partners other than for capital members including the new members, and the
and profits; assigning limited partner in case of substitution
(5) Those to general partners in respect to profits; or addition of a limited or general partner; and
(6) Those to general partners in respect to capital. (3) The writing to amend (with the certificate, as
amended) or to cancel must be filed for record in
Note: In settling accounts of a general partnership, the SEC.
those owing to partners in respect to capital enjoy
preference over those in respect to profits. From the moment the amended certificate/writing or
a certified copy of a court order granting the petition
SHARE IN THE PARTNERSHIP ASSETS for amendment has been filed, such amended
The share of limited partners in respect to their certificate shall thereafter be the certificate of
claims for capital, profits, or for compensation by way partnership. [Article 1865]
of income, is in proportion of their contribution,
unless:
(1) There is a statement in the certificate as to their
share in the profits; or Contract of agency
(2) There is a subsequent agreement fixing their
share. [Article 1863] DEFINITION
By the contract of agency, a person binds himself to
AMENDMENT OR CANCELLATION OF render some service or to do something in
CERTIFICATE representation or on behalf of another, with the
WHEN CERTIFICATE IS CANCELLED consent or authority of the latter [Article 1868].
The certificate shall be cancelled when:
(1) The partnership is dissolved; or Agency may refer to both a contract, as defined in
(2) All limited partners cease to be such. the provision, and the representative relation
created.
WHEN CERTIFICATE IS AMENDED
A certificate shall be amended when: As a relation, agency is fiduciary (based on trust and
(1) There is a change in the name of the partnership confidence), which implies a power in an agent to
or in the amount or character of the contribution contract with a third person on behalf of a principal.
of any limited partner;
(2) A person is substituted as a limited partner;
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The basis of agency is representation [Victorias Ratio: One who acts through an agent in law does
Milling v. CA (2000)]. the act himself. As such, the capacity to act by an
agent depends in general on the capacity of the
In an agent-principal relationship, the personality of principal to do the act himself as if he were present.
the principal is extended through the facility of the
agent. In so doing, the agent, by legal fiction, INTENTION OF PARTIES
becomes the principal, authorized to perform all acts On the part of the principal, there must be an actual
which the latter would have him do. Such a intention to appoint or an intention naturally
relationship can only be effected with the consent of inferable from his words or actions; and on the part of
the principal, which must not, in any way, be the agent, there must be an intention to accept the
compelled by law or by any court. [Orient Air v. CA appointment and act on it. [Victorias Milling v. CA
(1991)] (2000)]
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PRESUMPTION OF EXISTENCE
In other cases between persons who are absent, General rule: It [agency] must exist as a fact. The law
acceptance cannot be implied from the silence of the makes no presumption thereof. The person alleging
agent. [Article 1872] it has the burden of proof to show, not only the fact
of its existence, but also its nature and extent.
POWER OF ATTORNEY [People v. Yabut (1977)]
A power of attorney is an instrument in writing by
which one person, as principal, appoints another as Exceptions: A presumption of agency may arise:
his agent and confers upon him the authority to (1) Where an agency may arise by operation of law
perform certain specified acts of kinds of acts on his (e.g., all the partners being considered agents of
behalf. The written authorization itself is the power the partnership when the manner of
of attorney. It has also been called a "letter of management has not been agreed upon); or
attorney." (2) To prevent unjust enrichment. [De Leon (2010)]
Its primary purpose is not to define the authority of COMMUNICATION OF EXISTENCE OF AGENCY
the agent, but to evidence the authority of the agent There are two ways of giving notice of agency (that a
to third parties with whom the agent deals. The person has given a power of attorney to a third
person holding the power of attorney is designated person), with different effects:
as an "attorney-in-fact." (1) If a person specially informs another (e.g., by
letter), the person appointed as agent is
FORM OF CONTRACT considered such with respect to the person
General rule: There are no formal requirements specially informed;
governing the appointment of an agent. (2) If a person states by public advertisement, the
person appointed as agent is considered such
Exceptions: with regard to any person.
(1) When the law requires a specific form [2nd par.,
Article 1869]; In either case, the power of the agent continues in
(2) When a sale of piece of land or any interest full force until the notice is rescinded in the same
therein is through an agent, in which case the manner in which it was given. [Article 1873]
authority shall be in writing; otherwise the sale is
void [Article 1874]; DUTY OF THIRD PERSON
(3) When the law requires a special power of attorney The person dealing with the agent must act with
[Article 1878]. ordinary prudence and reasonable diligence.
Obviously, if he knows or has good reason to believe
DESIGNATION BY THE PARTIES that the agent is exceeding his authority, he cannot
The manner in which the parties designate the claim protection. [Keeler Electric v. Rodriguez (1922)]
relationship is not controlling. The use of this term
("agent") in one clause of the contract cannot EFFECT
dominate the real nature of the agreement as EXTENSION OF PERSONALITY
revealed in other clauses, no less than in the caption It bears stressing that in an agent-principal
["agency agreement"] of the agreement itself. relationship, the personality of the principal is
[Albadejo y Cia v. Phil. Refining (1923)] extended through the facility of the agent. In so
doing, the agent, by legal fiction, becomes the
ACTS DELEGATED principal, authorized to perform all acts which the
General rule: What a person may do in person, he latter would have him do. [Litonjua v. Eternit Corp.
may do through another. (2006)]
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(2) Notice must pertain to a matter of fact and not of Agency Independent Contractor
law;
(3) The fact must be within the scope of the agent's Control
authority.
An agent acts under the An independent
Thus, it is only logical that the agent is required to control and instruction of contractor is not subject to
notify the principal of all matters that came to his the principal control, except insofar as
attention that are material to the subject matter of the result of the work is
the agency. concerned
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Ownership of goods
Ownership is acquired in Ownership is transferred
behalf of the principal to the buyer
Changes in price
Kinds of agency
Generally, any change in A buyer cannot adjust the KINDS OF AGENCY, IN GENERAL
the price is borne by the price already agreed upon AS TO MANNER OF ITS CREATION
principal (1) Express;
(2) Implied.
Payment
AS TO CAUSE OR CONSIDERATION
Price is paid in behalf of Price is paid by the buyer (1) Gratuitous; or
the principal (2) Compensated or onerous.
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An agency by estoppel, which is similar to the doctrine Qualification: The exception only applies if the agent
of apparent authority, requires proof of reliance upon contracts with the properties of the principal within
the representations, and that, in turn, needs proof the scope of his authority [PNB v. Agudelo (1933)].
that the representations predated the action taken in
reliance. [Litonjua v. Eternit Corp. (2006)] AGENCY BY OPERATION OF LAW
An agency may exist by operation of law, such as in
Implied Agency Agency by Estoppel the following cases:
(1) Every partner is an agent of the partnership for
Principal is liable Person who is in bad faith the purpose of its business [Article 1818];
is liable (2) When the principal's actions would reasonably
lead a third person to conclude that an agency
exists, an agency by estoppel is created by
One who clothes another with apparent authority as
operation law [Black's Law Dictionary (9th)];
his agent, and holds him out to the public as such,
(3) In case of certain necessity or emergency, an
cannot be permitted to deny the authority of such
agency by necessity may arise.
person to act as his agent, to the prejudice of
innocent third parties dealing with such person in
IRREVOCABLE AGENCY
good faith.
Article 1927 (on agency coupled with an interest)
mentions three instances where the sole will of the
Note: Article 1911 states that: "Even when the agent
principal cannot terminate (revoke) an agency:
has exceeded his authority, the principal is solidarily
(1) A bilateral contract depends upon it;
liable with the agent if the former allowed the latter
(2) It is the means of fulfilling an obligation already
to act as though he had full powers." In this case,
contracted; or
there is a duly formed agency and estoppel only
(3) A partner is appointed manager of a partnership
applies to the excess of authority. This is an
in the contract of partnership and his removal
application of the doctrine of apparent authority
from the management is unjustifiable.
Under the doctrine of apparent authority, the
Qualifications:
question in every case is whether the principal has, by
(1) Coupled with interest or not, the authority
his voluntary act, placed the agent in such a situation
certainly can be revoked for a just cause, such as
that a person of ordinary prudence, conversant with
when the attorney-in-fact betrays the interest of
business usages and the nature of the particular
the principal, xxx. It is not open to serious doubt
business, is justified in presuming that such agent
that the irrevocability of the power of attorney
has authority to perform the particular act in
may not be used to shield the perpetration of acts
question. [Professional Services v. Agana (2008)]
in bad faith, breach of confidence, or betrayal of
trust, by the agent for that would amount to
In agency by estoppel, there is no agency. The alleged
holding that a power coupled with an interest
agent seemed to have apparent or ostensible
authorizes the agent to commit frauds against
authority, but not real authority to represent another.
the principal. [Coleongco v. Claparols (1964)]
AGENCY WITH UNDISCLOSED PRINCIPAL
(2) A mere statement in the power of attorney that it
General rule: If an agent acts in his own name (the
is coupled with an interest is not enough. In what
principal is undisclosed), the agent is the one directly
does such interest consist must be stated in the
bound in favor of the person with whom he has
power of attorney. [Del Rosario v. Abad (1958)]
contracted, as if the transaction were his own.
(3) An agency couple with an interest cannot affect
Ratio: There is no representation of the principal
third persons. They are obligatory only on the
when the agent acts in his own name. The third
principal who executed the agency. [New Manila
person cannot allege that he was misled by any
Lumber v. Republic (1960)]
representation since he did not know of the existence
of the undisclosed principal.
KINDS OF AGENTS
AS TO NATURE AND EXTENT OF AUTHORITY
Exception: The principal is bound when the contract
According to the nature and extent of their authority,
involves things belonging to him [Article 1883]. In this
agents have been classified into:
case, the contract is considered as one between the
(1) Universal agents are authorized to do all acts for
principal and the third person.
his principal which can lawfully be delegated to
an agent. So far as such a condition is possible,
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according to an understanding between the principal demands that the agent look out for the best
and the agent. [Article 1901] interests of the principal as against his own or those
of third parties. [See Article 1889]
While third persons are bound to inquire into the
extent or scope of the agent’s authority, they are not Thus, an act of the agent which tends to violate his
required to go beyond the terms of the written power fiduciary duty is not only invalid as to the principal,
of attorney. Third persons cannot be adversely but is also against public policy.
affected by an understanding between the principal
and his agent as to the limits of the latter’s authority. Presumption: Until proven otherwise, however, the
In the same way, third persons need not concern presumption arises that an agent has performed his
themselves with instructions given by the principal to duty in good faith, and the principal, until notice is
his agent outside of the written power of attorney. received of a breach of relational duties, may rely
[Siredy Enterprises v. CA (2002)] upon his agent's faithfulness.
POWER TO BIND THE PRINCIPAL Exception: The presumption does not arise when
Requisites: there is no relation of trust or confidence between
(1) The agent must act within the scope of his the parties (e.g., the agent is bound merely as an
authority; and instrument/servant, or there is no agency
(2) The agent must act in behalf of the principal. relationship). [De Leon (2010)]
Even when the agent acts in his own name, however, OBEDIENCE TO PRINCIPAL'S INSTRUCTIONS
the principal is still bound, when the contract General rule: An agent must obey all lawful orders
involves things belonging to the principal [Article and instructions of the principal within the scope of
1883] or when the principal ratifies the contract, the agency. If he fails to do so, he becomes liable for
expressly or tacitly [Article 1910]. any loss the principal incurs even though he can
show that he acted in good faith or exercised
EFFECTS OF ACTS OF AN AGENT reasonableness. [See Article 1887]
In summary, when the agent acts:
(1) With authority of the principal: EXERCISE OF REASONABLE CARE
(a) If done in the name of the principal, the By accepting an employment whose requirements he
principal is bound to comply with the knows, without stipulating otherwise, the agent
obligations contracted [Article 1910] and the impliedly undertakes that he possesses a degree of
agent is not personally liable to the party with skill reasonably and ordinarily competent for the
whom he contracts [Article 1897]; performance of the service, and that in performing
(b) If done in the name of the agent, the agent is his undertaking, he will exercise reasonable care,
the one directly bound in favor of the person skill and diligence. [De Leon (2010)]
with whom he has contracted, except when
the contract involves things belonging to the The specific obligations of the parties to each other
principal; are merely specific applications of the general
(2) Without authority or beyond the authority granted fiduciary obligation [De Leon (2010)].
by the principal:
(a) If done in the name of the principal, it is OBLIGATION TO CARRY OUT AGENCY
unenforceable against him, unless he ratifies General rule: The agent is:
it expressly or tacitly [Article 1910]. (1) Bound by his acceptance to carry out the agency;
(b) If done in the name of the agent, he is (2) Liable for damages, which the principal may
personally liable. suffer, in case of non-performance;
(3) Bound to finish the business already begun on
the death of the principal should delay entail
danger. [Article 1884]
Obligations of the agent Exception: An agent shall not carry out an agency if
its execution would manifestly result in loss or
OBLIGATIONS, IN GENERAL damage to the principal [Article 1888].
GOOD FAITH AND LOYALTY TO HIS TRUST
The duty of good faith is also called the fiduciary OBLIGATION IN CASE HE DECLINES AGENCY
duty, which imposes upon the agent the obligation of In case a person declines an agency, he is bound to
faithful service. The duty to be loyal to the principal observe the diligence of a good father of a family in
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The case treated in this provision is different from Binds third parties Does not bind third
withdrawal. In this case, no agency was formed. parties
Withdrawal presupposes an existing agency.
Note: Insolvency of the principal is also a ground for BASIS OF THE RULE
extinguishment. The underlying basis of the rule, which precludes an
agent from engaging in self-dealing, is to shut the
OBLIGATION TO ACT IN ACCORDANCE WITH door against temptation and keep the agent's eye
INSTRUCTIONS single to the rights and welfare of the principal.
In the execution of the agency, the agent shall act in
accordance with the instructions of the principal. APPLICATION
(1) A specific application of this subordination of
In the absence of such instructions, he shall do all interests is found in Article 1890: If the agent has
that a good father of a family would do, as required been empowered to borrow money, he may
by the nature of the business. [Article 1887] himself be the lender at the current rate of
interest. If he has been authorized to lend money
Note: The limits of the agent's authority shall not be at interest, he cannot borrow it without the
considered exceeded should it have been performed consent of the principal.
in a manner more advantageous to the principal (2) An agent authorized to sell merchandise cannot
than that specified by him [Article 1882]. bind the principal by selling to himself directly or
indirectly, unless the principal consented or
Authority Instructions ratified the purchase.
Sum total of the powers Private rule of guidance to OBLIGATION TO ACCOUNT AND TO DELIVER
committed or permitted to the agent THINGS RECEIVED
the agent Every agent is bound to:
(1) Render an account of his transactions; and
(2) Deliver to the principal whatever he may have
received by virtue of the agency, even though it
may not be owing to the principal.
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(1) The non-fulfillment of agency, even when the (4) The party with whom the agent contracted is
fellow agents acted beyond the scope of their aware of the limits of the powers granted by the
authority; and principal.
(2) The fault or negligence of his fellow agents,
except when the fellow agents acted beyond their The agent, however, is liable if he undertook to
authority. secure the principal's ratification.
Note: If the agent acts in his own name, he is directly A principal may not accept the benefits of a
bound in favor of the person with whom he transaction and repudiate its burdens. Thus, a
contracted, as if the transaction were his own, except principal who seeks to enforce a sale made by the
when the contract involves things belonging to the agent cannot ordinarily allege that the agent
principal. exceeded his authority.
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whereof he himself was, or ought to have been, SALE OF GOODS ON CREDIT WITHOUT AUTHORITY
aware. [Article 1899] General rule: The commission agent cannot sell on
credit. Should he do so, the principal may:
Thus, if the principal appoints an agent who is (1) Demand from him payment in cash, in which case
ignorant, the fault is his alone. He is bound by the the commission agent shall be entitled to any
acts of the agent. The agent is not liable to third interest or benefit, which may result from such
persons in this case. sale [Article 1905]; or
(2) Ratify the sale on credit, in which case the
OBLIGATIONS OF COMMISSION AGENT principal will have all the risks and advantages to
FACTOR OR COMMISSION AGENT him [De Leon (2010)].
A factor or commission agent is one whose business
is to receive and sell goods for a commission (also Exception: The commission agent can sell on credit
called factorage) and who is entrusted by the with the express or implied consent of the principal.
principal with the possession of goods to be sold,
and usually selling in his own name. SALE OF GOODS ON CREDIT WITH AUTHORITY
If the commission agent was authorized to sell on
He may act in his own name or in that of the credit and should he so sell on credit, he shall inform
principal. the principal of such sale, with a statement of the
names of the buyers.
An ordinary agent need not have possession of the
goods of the principal, while the commission agent Should he fail to inform the principal, the sale is
must be in possession. [De Leon (2010)] deemed to have been made for cash as far as the
principal is concerned. [Article 1906] As such, as to
Ordinary Agent Commission Agent the buyer, the sale may be on credit, but the principal
may demand the payment in cash from the agent.
Acts for and in behalf of Acts in his own name or
the principal that of his principal Should the commission agent receive a guarantee
commission (del credere commission) on a sale, in
Need not have possession Must have possession of addition to the ordinary commission, he shall:
of the goods the goods (1) Bear the risk of collection; and
(2) Pay the principal the proceeds of the sale on the
terms agreed upon with the purchaser.
Broker Commission Agent In case of a sale on credit, the commission agent is
Has no custody of the Has custody or possession obliged to collect the credits of his principal when
thing to be disposed of, of the things to be sold they become due and demandable.
only acts as intermediary
between seller and buyer General rule: Failing to so collect, the agent shall be
liable for damages
Maintains no relations Maintains relations with
with things to be the thing, the buyer and Exception: He is not liable if he proves that he
sold/bought the seller exercised due diligence for that purpose.
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The principal is solidarily liable if quasi-delict was The effects of ratification are:
committed by the agent while performing his duties (1) With respect to the agent, it relieves him of
in furtherance of the principal's business. liability. He may thus recover compensation from
the principal.
(2) With respect to the principal, he assumes
responsibility for the unauthorized act as fully as
if the agent had acted under an original authority.
Obligations of the principal But he is not liable for acts outside the authority
affirmed by his ratification.
OBLIGATIONS, IN GENERAL (3) With respect to third persons, they are bound by
In addition to his duties specified under the contract the ratification and cannot set up the fact that the
itself, the principal is under obligation to deal fairly agent has exceeded his powers [Article 1901].
and in good faith with his agent, who owes the same
to his principal. SEPARATE CONTRACTS WITH PRINCIPAL AND AGENT
When two persons contract with regard to the same
OBLIGATION TO COMPLY WITH OBLIGATIONS thing, one of them with the agent and the other with
CONTRACTED the principal, and the two contracts are incompatible
General rule: The principal must comply with all the with each other, that of prior date shall be preferred,
obligations which the agent may have contracted subject to the rules on double sales [Article 1916].
within the scope of his authority. As for any obligation
where in the agent has exceeded his power, the The rules on double sales (Article 1544) provide:
principal is not bound. (1) If the same movable property is sold to different
persons, ownership is transferred to whoever first
Exceptions: The principal is: took possession in good faith.
(1) Bound by the obligation entered into by the (2) If it be immovable:
agent in excess of his power, when he ratifies it (a) Ownership belongs to the person who in good
expressly or tacitly [Article 1910]; faith first recorded it in the Registry of
(2) Solidarily liable with the agent if the principal Property.
allowed the agent to act as though he had full (b) If there is no inscription, ownership shall
powers [Article 1911]. belong to the person who, in good faith was
first in possession; and in the absence of such,
Note: If the agent acts in his own name, but the to the one who presents the oldest title,
contract involves things belonging to the principal, provided there is good faith.
the contract must be considered as entered into
between the principal and the third person [Sy-Juco The liability for damages suffered by the third person
and Viardo v. Sy-Juco (1920)]. whose contract must be rejected shall be borne by:
(1) The principal, if the agent acted in good faith; or
RATIFICATION
(2) The agent, if he acted in bad faith. [Article 1918]
Ratification is the adoption or affirmance by a person
of a prior act which did not bind him, but which was WHEN PRINCIPAL NOT LIABLE, IN SUMMARY
done or professed to be done on his account, thus (1) Void or inexistent contracts [Article 1409];
giving effect to the acts as if originally authorized. (2) Sale of a piece of land or any interest therein
when the authority of the agent is not in writing
Aside from the intent to ratify, the following [Article 1874];
conditions must be fulfilled for ratification to be (3) Acts of the substitute appointed against the
effective: prohibition of the principal [Article 1892];
(1) The principal must have the capacity and power (4) Acts done in excess of the scope of the agent's
to ratify; authority [Articles 1898 and 1910];
(2) He must have had knowledge or had reason to (5) When the agent acts in his own name, except
know of material or essential facts about the when the contract involves things belonging to the
transaction; principal [Article 1883];
(3) He must ratify the acts entirely; (6) Unenforceable contracts [Article 1403].
(4) The act must be capable of ratification; and
(5) The act must be done in behalf of the principal. OBLIGATION FOR COMPENSATION OF AGENT
[De Leon (2010)] Agency is presumed to be for a compensation, unless
there is proof to the contrary [Article 1875].
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AMOUNT OF COMPENSATION (b) Provided that the agent is free from all fault.
The principal must pay the agent the compensation [Article 1912]
agreed upon, or the reasonable value of the agent's
services if no compensation was specified. The reimbursement shall include the interest on the
sums advanced from the day the advances were
This obligation presupposes that the agent complied made.
with his obligation to the principal.
WHEN PRINCIPAL NOT LIABLE FOR EXPENSES
COMPENSATION OF BROKER The principal is not liable for the expenses incurred
A broker is entitled to the usual commissions by the agent in the following cases:
whenever he brings to his principal a party who is (1) If the agent acted in contravention of the
able and willing to take the property and enter into a principal's instructions, unless the latter should
valid contract upon the terms named by the wish to avail himself of the benefits derived from
principal, although the terms may be arranged and the contract;
the matter negotiated and consummated between (2) When the expenses were due to the fault of the
the principal and the purchaser directly. agent;
(3) When the agent incurred them with knowledge
A broker is never entitled to commission for that an unfavorable result would ensue, if the
unsuccessful efforts. principal was not aware thereof;
(4) When it was stipulated that:
The governing rule is that the agent must prove that (a) The expenses would be borne by the agent; or
he was the procuring cause of the transaction. (b) That the latter would be allowed only a
Otherwise, he is not entitled to the stipulated certain sum. [Article 1918]
broker's commission [Inland Realty v. CA (1997)].
DAMAGES
Procuring cause refers to a cause originating a series The principal must also indemnify the agent for all
of events which, without break in their continuity, the damages which the execution of the agency may
result in the accomplishment of the prime objective have caused the latter, without fault or negligence or
of the employment of the broker – producing a his part. [Article 1913]
purchaser ready, willing and able to buy on the
RIGHT OF RETENTION BY AGENT
owner's terms.
The agent may retain in pledge the things which are
the object of the agency until the principal effects:
Since the broker’s only job is to bring together the (1) Reimbursement of necessary funds advanced;
parties to a transaction, it follows that if the broker and
does not succeed in bringing the mind of the (2) Payment of indemnity for damages. [Article 1914]
purchaser and the vendor to an agreement with
reference to the terms of a sale, he is not entitled to This is a case of legal pledge. However, the agent is
a commission [Rocha v. Prats (1922)]. not entitled to the excess in case the things are sold
to satisfy his claims.
If the principal breaks off from negotiations with a
buyer brought by the agent in order to deliberately MULTIPLE PRINCIPALS
deal later with the buyer personally, this is evident If there are two or more principals who appointed the
bad faith. In such case, justice demands agent for a common transaction or undertaking, they
compensation for the agent. [Infante v. Cunanan shall be solidarily liable for all the consequences of
(1953)] the agency [Article 1915].
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DEATH OF AGENT
If the agent dies, his heirs must:
(1) Notify the principal thereof; and
(2) In the meantime adopt such measures as the
circumstances may demand in the interest of the
latter. [Article 1932]
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Credit Transactions Upon delivery of the object of the contract of loan (in
this case the money received by the debtor when the
MEANING AND SCOPE OF CREDIT checks were encashed) the debtor acquires
TRANSACTIONS ownership of such money or loan proceeds and is
Credit transactions include all transactions involving bound to pay the creditor an equal amount. [Garcia
the purchase or loan of goods, services, or money in v. Thio, G.R. No. 154878]
the present with a promise to pay or deliver in the
future. COMMODATUM V. MUTUUM
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(2) To refund extraordinary expenses for the General Rule [1]: Bailee is liable for deterioration of
preservation of the thing loaned provided bailor is thing loaned.
notified before the expenses were incurred. [Art.
1949] Exception [1]: The deterioration of the thing is due
(a) Exception: Urgent need such that reply to the only to the use thereof and without his fault [Art.
notification cannot be awaited without 1943]
danger, hence no notice is necessary.
General Rule [2]: Bailee has no right of retention of
(3) To bear 50% of the extraordinary expenses the thing loaned, on the ground that the bailor owes
arising from actual use of bailee of the thing him something. [Art. 1944]
loaned [Art. 1949]
(a) Exception: Contrary stipulation Exception [2]: Bailee has a right of retention for
damages for known hidden flaws mentioned in Art
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Principal’s liability may exceed guarantor’s Note: Surety is not entitled to exhaustion
obligations
The amount specified in a surety bond as the (1) The undertaking is to the creditor, not the debtor
surety’s obligation does not limit the extent of the The surety makes no covenant or agreement with
damages that may be recovered from the the principal that it will fulfill the obligation
principal, the latter’s liability being governed by guaranteed for the benefit of the principal. The
the obligations he assumed under his contract surety’s undertaking is that the principal shall
fulfill his obligation and that the surety shall be
(10) The existence of a guaranty is not presumed relieved of liability when the obligation secured is
[2055] performed.
Guaranty requires the expression of consent on
the part of the guarantor to be bound. It cannot Exception: Unless otherwise expressly provided.
be presumed because of the existence of a
contract or principal obligation. (2) Prior demand by the creditor upon principal not
required. Surety is not exonerated by neglect of
Rationale: creditor to sue principal.
(a) There be assurance that the guarantor had
the true intention to bind himself; Strictissimi juris rule applicable only to
(b) To make certain that on making it, the accommodation surety
guarantor proceeded with consciousness of Reason: An accommodation surety acts without
what he was doing. motive of pecuniary gain and hence, should be
protected against unjust pecuniary impoverishment
(11) Contract of guaranty is covered by the Statute of by imposing on the principal, duties akin to those of
Frauds [See Art. 1403(2)(b)] a fiduciary. This rule will apply only after it has been
Guaranty must not only be expressed but must so definitely ascertained that the contract is one of
be reduced into writing. Hence, it shall be suretyship or guaranty.
unenforceable by action, unless the same or
some note or memorandum thereof be in writing, Strictissimi juris rule NOT applicable to compensated
and subscribed by the party charged, or by his sureties
agent; evidence, therefore, of the agreement Reasons:
cannot be received without the writing, or a (1) Compensated corporate sureties are business
secondary evidence of its contents. However, it associations organized for the purpose of
need not appear in a public document assuming classified risks in large numbers, for
profit and on an impersonal basis.
(2) They are secured from all possible loss by
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before he can be compelled to pay. (8) Co-guarantors are entitled to the benefit of division
Exception: The creditor may, prior thereto, secure [2065]
a judgment against the guarantor, who shall be The benefit of division applies only when there
entitled, however, to a deferment of the execution are several guarantors and one debtor for a
of said judgment against him, until after the single debt. Except when solidarity has been
properties of the principal debtor shall have been stipulated, a co-guarantor is liable only to the
exhausted, to satisfy the latter’s obligation. extent of his share in the obligation as divided
among all the co-guarantors.
(3) The creditor has the duty to make prior demand for
payment from the guarantor 2060) EFFECTS OF GUARANTY BETWEEN THE DEBTOR AND THE
(a) The demand is to be made only after GUARANTOR
judgment on the debt (1) The guarantor who pays has the right to be
(b) Joining the guarantor in the suit against the subrogated to the rights of the creditor [2067]
principal debtor is not the demand intended A guarantor who pays the debt is entitled to every
by law. Actual demand has to be made. remedy which the creditor has against the
principal debtor, to enforce every security and all
(4) The guarantor has the duty to set up the benefit of means of payments; to stand in the place of the
excussion [2060] creditor not only through the medium of the
As soon as he is required to pay, guarantor must contract, but even by means of the securities
also point out to the creditor available property entered into w/out the knowledge of the surety;
(not in litigation or encumbered) of the debtor having the right to have those securities
within the Philippines. transferred to him though there was no
stipulation for it, and to avail himself of all
(5) The creditor has the duty to resort to all legal securities against the debtor
remedies [2058, 2061]
After the guarantor has fulfilled the conditions The need to enforce the provisions on indemnity
required for making use of the benefit of in Article 2066 forms the basis for the
excussion, it becomes the duty of the creditor to: subrogation clause of Article 2067. The
(a) Exhaust all the property of the debtor pointed assumption, however, is that the guarantor who is
out by the guarantor; subrogated to the rights of the creditor, has the
(b) If he fails to do so, he shall suffer the loss for right to be reimbursed for his answering for the
the insolvency of the debtor, but only to the obligation of the debtor. Absent this right of
extent of the value of the said property reimbursement, subrogation will not be proper.
(6) The creditor has the duty to notify the guarantor in (2) The guarantor has the duty to notify the debtor
the action against the debtor [2062] before paying the creditor [2068].
Notice to the guarantor is mandatory in the
action against the principal debtor. The Should payment be made without notification,
guarantor, however, is not duty bound to appear and supposing the debtor has already made a
in the case, and his non- appearance shall not prior payment, the debtor would be justified in
constitute default, w/ its consequential effects. setting up the defense that the obligation has
already been extinguished by the time the
Rationale: To give the guarantor the opportunity guarantor made the payment. The guarantor will
to allege and substantiate whatever defenses he then lose the right of reimbursement and
may have against the principal obligation, and consequently the right of subrogation.
chances to set up such defenses as are afforded
him by law (3) The guarantor cannot demand reimbursement for
payment made by him before the obligation has
(7) A compromise shall not prejudice the person not become due [2069].
party to it [2063]
(a) A compromise between creditor and principal General Rule: Since a contract of guaranty is only
debtor benefits the guarantor but does not subsidiary, the guarantor cannot be liable for the
prejudice him. obligation before the period on which the
(b) A compromise between guarantor and the debtor’s Liability will accrue. Any payment made
creditor benefits but does not prejudice the by the guarantor before the obligation is due
principal debtor. cannot be indemnified by the debtor.
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For purposes of proportionate reimbursement, the Bondsman – a surety offered in virtue of a provision
other guarantors may interpose such defenses of law or a judicial order.
against the paying guarantor as are available to the
debtor against the creditor, except those that are QUALIFICATIONS OF PERSONAL BONDSMAN [2082 IN
personal to the debtor [Art. 2074] RELATION TO ART. 2056]
(1) He possesses integrity;
Requisites for the applicability of Art. 2073: (2) He has capacity to bind himself;
(1) Payment has been made by one guarantor; (3) He has sufficient property to answer for the
(2) The payment was made because obligation which he guarantees.
(a) Of the insolvency of the debtor, or
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PLEDGE OR MORTGAGE IN LIEU OF BOND [2083] (6) Creditor has the right to retain the thing in his
(a) Guaranty or suretyship is a personal security. possession or in that of a third person to whom it
(b) Pledge or mortgage is a property or real security. has been delivered, until the debt is paid [2098].
If the person required to give a legal or judicial (7) Special Laws apply to pawnshops and
bond should not be able to do so, a pledge or establishments engaged in making loans secured
mortgage sufficient to cover the obligation shall by pledges. Provisions of the Civil Code shall
be admitted in lieu thereof. apply subsidiarily to them.
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the debt and its interest, with expenses in a EFFECT OF THE SALE OF THE THING PLEDGED [Art 2115]
proper case [2105]. (1) Extinguishes the principal obligation, whether the
proceeds of the sale is more or less than the
Yuliongsiu vs. PNB: There is authority supporting the amount due.
proposition that the pledgee can temporarily entrust (2) If the price of sale is more than amount due, the
the physical possession of the chattels pledged to debtor is not entitled to the excess unless the
the pledgor without invalidating the pledge. In such contrary is provided.
a case, the pledgor is regarded as holding the (3) If the price of sale is less, the creditor is not
pledged property merely as trustee for the pledgee. entitled to recover the deficiency. A contrary
The type of delivery will depend upon the nature and stipulation is void.
the peculiar circumstances of each case.
PLEDGE BY OPERATION OF LAW – ART. 2121-
PNB vs. Atendido: according to law, a pledgee cannot 2122
become the owner of, nor appropriate to himself, the LEGAL PLEDGES/PLEDGE BY OPERATION OF LAW [Art.
thing given in pledge. If by the contract of pledge the 2121]
pledgor continues to be the owner of the thing (1) Necessary expenses shall be refunded to every
pledged during the pendency of the obligation, it possessor, but only a possessor in good faith may
stands to reason that in case of loss of the property, retain the thing until he has been reimbursed.
the loss should be borne by the pledgor. (a) Useful expenses shall be refunded only to the
possessor in good faith with the same right of
(3) Subject to the right of the pledgee under article retention, the person who has defeated him in
2108, pledgor is allowed to substitute the thing the possession having the option of refunding
which is in danger of destruction or impairment the amount of the expenses or of paying the
without any fault on the part of the pledgee with increase in value which the thing may have
another thing of the same kind and quality [2107]. acquired and by reason thereof [Art. 546]
(4) May require that the thing be deposited with a (2) He who has executed work upon a movable has a
3rd person, if through the negligence or willful right to retain it by way of pledge until he is paid.
act of the pledgee the thing is in danger of being This is called the mechanic’s lien. [Art. 1731]
lost or impaired [2106]. (3) The agent may retain the things which are the
objects of agency until the principal effects the
PERFECTION – ARTS. 2093, 2096 reimbursement and pays the indemnity. This is
REQUISITES FOR PERFECTION called the agent’s lien. [Art. 1914]
(1) The thing pledged is placed in the possession of (4) The laborer’s wages shall be a lien on the goods
the creditor or a third person [2093] manufactured or the work done. [Art. 1707]
(2) For the pledge to take effect as against third
persons, a description of the thing pledged and Note:
the date of the pledge should appear in a public (1) In legal pledges, the remainder of the price of the
instrument [2096] sale shall be delivered to the obligor.
(2) Public auction of legal pledges may only be
FORECLOSURE ARTS. 2112, 2115 executed after demand of the amount for which
REQUIREMENTS IN SALE OF THE THING PLEDGED BY A the thing is retained. It shall take place within one
CREDITOR, IF CREDIT IS NOT PAID ON TIME (ART 2112) month after the demand, otherwise the pledgor
(1) Debt is due and unpaid. may demand the return of the thing pledged,
(2) Sale must be at a public auction. provided s/he is able to show that the creditor did
(3) Notice to the pledgor and owner, stating the not cause the public sale without justifiable
amount due. grounds. [Article 2122]
(4) Sale must be made with the intervention of a
notary public. DISTINGUISHED FROM CHATTEL MORTGAGE –
(5) If at the first auction the thing is not sold, a ARTS. 2140, 1484
second one with the same formalities shall be Chattel Mortgager Pledge
held.
(6) If at the second auction, there is no sale either, Delivery of Personal Property
the creditor may appropriate the thing pledged
but he shall give an acquittance (release) for his Not required Delivery is required for the
entire claim. validity of the pledge
Registration in the Chattel Mortgage Register
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KINDS
Real Mortgage (1) Voluntary – constituted by the will of the owner of
the property on which it is created
DEFINITION AND CHARACTERISTICS
Mortgage is a contract whereby the debtor secures to (2) Legal – required by law to be executed in favor of
the creditor the fulfillment of a principal obligation, certain persons:
immediately making immovable property or real (a) Persons in whose favor the law establishes a
rights answerable to the principal obligation in case mortgage have no other right than to demand
it is not complied with at the time stipulated. the execution and recording of the document
in which the mortgage is formalized [Article
OBJECTS OF REAL MORTGAGE [Art. 2124] 2125]
(1) Immovables (b) The bondsman who is to be offered in virtue of
(2) Alienable real rights over immovables. a provision of law or of a judicial order shall
(a) Future property cannot be an object of have the qualifications prescribed in Art 2056
mortgage; however, a stipulation subjecting to (integrity, capacity to bind himself, and
the mortgage improvements which the sufficient property to answer for the
mortgagor may subsequently acquire, install obligation), and in other laws [Article 2082]
or use in connection with real property already (c) If the person bound to give a bond should not
mortgaged belonging to the mortgagor is be able to do so, a pledge or mortgage
valid. considered sufficient to recover his obligation
shall be admitted in lieu thereof [Article 2083]
CHARACTERISTICS
(1) As a general rule, the mortgagor retains (3) Equitable – One which, although lacking the
possession of the property. He may deliver said proper formalities of a mortgage, shows the
property to the mortgagee without altering the intention of the parties to make the property a
nature of the contract of mortgage. security for the debt.
(2) It is not an essential requisite that the principal of (a) lien created through equitable mortgage
the credit bears interest, or that the interest as ought not to be defeated by requiring
compensation for the use of the principal and the compliance with formalities necessary to the
enjoyment of its fruits be in the form of a certain validity of a voluntary real estate mortgage.
percentage thereof. Ex.: Pacto de retro
(3) Mortgage creates an encumbrance over the (b) provisions governing equitable mortgage:
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Arts. 1365, 1450, 1454, 1602, 1603, 1604 and (4) Cannot exist without a valid obligation.
1607. (5) Debtor retains the ownership of the thing given
as a security.
(6) When the principal obligation becomes due, the
PRINCIPLE OF INDIVISIBILITY OF PLEDGE/MORTGAGE thing pledged or mortgaged may be alienated for
[ART. 2089 TO 2090] the payment to the creditor. [Art. 2087]
(a) Dayrit v. CA: A mortgage directly and immediately (7) Must be recorded in the Registry of Property in
subjects the property upon which it is imposed. It order to be validly constituted.
is indivisible even though the debt may be Note: The mortgage would still be binding
divided, and such indivisibility is likewise between the parties even if the instrument is not
unaffected by the fact that the debtors are not recorded.
solidarity liable.
(b) Central Bank v. CA: Where only a portion of the FORECLOSURE
loan is released, the mortgage becomes FORECLOSURE OF MORTGAGE
enforceable only as to the proportionate value of It is the remedy available to the mortgagee by which
the loan he subjects the mortgaged property to the
satisfaction of the obligation secured by the
Indivisibility applies only as to pledgors/mortgagors mortgage.
who are themselves debtors in the principal (a) In General: An action for foreclosure of a
obligation, and not to accommodation pledgors/ mortgage is limited to the amount mentioned in
mortgagors the mortgage, EXCEPT when the mortgage
contract intends to secure future loans or
"When several things are pledged or mortgaged, advancements
each thing for a determinate portion of the debt, the (b) BLANKET mortgage/DRAGNET– mortgage that
pledges or mortgage, are considered separate from subsumes all debts of past or future origin
each other. But when the several things are given to (c) Mortgage may be used as a “continuing security”
secure the same debt in its entirety, all of them are which secures future advancements and is not
liable for the debt, and the creditor does not have to discharged by the repayment of the amount in
divide his action by distributing the debt among the the mortgage
various things pledged or mortgaged. Even when (d) Alienation or assignment of mortgage credit is
only a part of the debt remains unpaid, all the things valid even if it is not registered
are still liable for such balance." [Tolentino]
Acceleration Clause, or the stipulation stating that on
The question is whether or not the written the occasion of the mortgagor’s default, the whole
instrument in controversy was a mortgage OR a sum remaining unpaid automatically becomes due
conditional sale. The correct test, where it can be and demandable, is ALLOWED
applied, is the continued existence of a debt or
liability between the parties. If such exists, the KINDS OF FORECLOSURE
conveyance may be held to be merely a security for (1) Judicial Foreclosure
the debt or an indemnity against the liability. (Reyes (2) Extrajudicial Foreclosure
v. Sierra, 93 SCRA 473)
JUDICIAL FORECLOSURE
ESSENTIAL REQUISITES Rule 68, ROC:
ESSENTIAL REQUISITES COMMON TO PLEDGE AND (a) May be availed of by bringing an action in the
MORTGAGE proper court which has jurisdiction over the area
(1) Constituted to secure the fulfillment of a principal wherein the real or personal (in case of chattel
obligation. mortgage) property involved or a portion thereof
(2) Pledgor or mortgagor must be the absolute is situated.
owner of the thing pledged or mortgaged. (b) If the court finds the complaint to be well-
(3) The persons constituting the pledge or mortgage founded, it shall order the mortgagor to pay the
have the free disposal of their property, and in the amount due with interest and other charges
absence thereof, that they be legally authorized within a period of not less than 90 days nor more
for the purpose. than 120 days from the entry of judgment. If the
Note: Third persons who are not parties to the mortgagor fails to pay at the time directed, the
principal obligation may secure the latter by court, upon motion, shall order the property to be
pledging or mortgaging their own property. [Art. sold to the highest bidder at a public auction.
2085] (c) Upon confirmation of the sale by the court, it
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shall operate to divest the rights of all parties to to the buyer, which is similar to the equity of
the action and to vest their rights to the redemption. The TCT must be registered
purchaser subject to such rights of redemption as within THREE MONTHS after the foreclosure.
may be allowed by law. (b) The mortgagor can only legally transfer the
(d) Before the confirmation, the court retains control right to redeem and the use of the property
of the proceedings during the period of redemption.
(e) Execution of judgment subject to APPEAL but not (7) Remedy of party aggrieved by foreclosure is a
annulment petition to set aside sale and the cancellation of
(f) The foreclosure of the property is completed only writ of possession. However, if the mortgagee is a
when the sheriff’s certificate is executed, bank, the mortgagor is required to post a bond
acknowledged and recorded equal to the value of the mortgagee’s claim.
(8) Republication of the notice of sale is necessary for
The Proceeds of the Sale shall be applied to the the validity of the postponed extrajudicial sale
Payment of the: (9) In foreclosure of real estate mortgage under Act
(a) Costs of the sale; 3135, the buyer at auction may petition the land
(b) Amount due the mortgagee; registration court for a writ of possession pending
(c) Claims of junior encumbrancers or persons the one-year period of redemption of the
holding subsequent mortgages in the order of foreclosed property.
their priority; and
(d) Balance, if any shall be paid to the mortgagor. Nature of Power of Foreclosure by Extrajudicial Sale
(1) Conferred for mortgagee’s protection.
Nature of Judicial Foreclosure Proceedings (2) An ancillary stipulation.
(1) Quasi in rem action. Hence, jurisdiction may be (3) A prerogative of the mortgagee.
acquired through publication.
(2) Foreclosure is only the result or incident of the Note:
failure to pay debt. (a) Both should be distinguished from execution sale
(3) Survives death of mortgagor. governed by Rule 39, ROC.
(b) Foreclosure retroacts to the date of registration of
EXTRAJUDICIAL FORECLOSURE [ACT NO. 3135] mortgage.
(1) Applies to mortgages where the authority to (c) A stipulation of upset price, or the minimum price
foreclose is granted to the mortgagee. at which the property shall be sold to become
(2) Authority is not extinguished by death of operative in the event of a foreclosure sale at
mortgagor or mortgagee. This is an agency public auction, is null and void.
coupled with interest.
(3) Public sale should be made after proper notice to Right of mortgagee to recover deficiency
the public, otherwise it is a jurisdictional defect (1) Mortgagee is entitled to recover deficiency.
which could render the sale voidable. (2) If the deficiency is embodied in a judgment, it is
(4) There is no need to notify the mortgagor, where referred to as deficiency judgment.
there is no contractual stipulation therefor. (3) Action for recovery of deficiency may be filed even
during redemption period.
Proper notice consists of: (4) Action to recover prescribes after 10 years from
(a) posting notice in three public places and/or the time the right of action accrues.
(b) publication in newspaper of general
circulation Effect of inadequacy of price in foreclosure sale
(1) Where there is right to redeem, inadequacy of
Purpose of notice is to obtain the best bid for the price is immaterial because the judgment debtor
foreclosed property may redeem the property.
(a) Exception: Where the price is so inadequate as
(5) Surplus proceeds of foreclosure sale belong to to shock the conscience of the court, taking
the mortgagor. into consideration the peculiar circumstances.
(6) Debtor (who must be a NATURAL PERSON) has (2) Property may be sold for less than its fair market
the right to redeem the property sold within 1 year value, upon the theory that the lesser the price
from and after the date of sale. the easier it is for the owner to redeem.
(a) If the mortgagee is a bank and the debtor is a (3) The value of the mortgaged property has no
juridical person, then there is no right of bearing on the bid price at the public auction,
redemption. However, it may redeem the provided that the public auction was regularly
property BEFORE the registration of the TCT and honestly conducted.
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(c) Each mortgagor and mortgagee or, in the does not within ten days after being requested
absence of the mortgagee, his agent or attorney, thereto by any person entitled to redeem, discharge
shall make and subscribe an affidavit in the form the mortgage in the manner provided by law, the
prescribed by law, which affidavit, signed by the person entitled to redeem may recover of the person
parties to the mortgage and the two witnesses whose duty it is to discharge the same, twenty pesos
and the certificate of the oath signed by the for his neglect and all damages occasioned thereby
person authorized to administer an oath shall be in an action in any court having jurisdiction of the
appended to such mortgage and recorded subject-matter thereof. [Sec. 8]
therewith. [Sec. 5, Act 1508]
When the condition of the chattel mortgage is
DESCRIPTION OF PROPERTY broken, a mortgagor or person holding a subsequent
The mortgaged property should be described such mortgage, or a subsequent attaching creditor may
as to enable the parties to the mortgage, or any redeem the same by paying or delivering to the
other person, after reasonable inquiry and mortgagee the amount due on such mortgage and
investigation, to identify the same. the reasonable costs and expenses incurred by such
breach of condition before the sale thereof. An
Large cattle as chattel mortgage attaching creditor who so redeems shall be
The description in the mortgage shall contain the subrogated to the rights of the mortgagee and
brands, class, sex, age, knots of radiated hair entitled to foreclose the mortgage in the same
commonly known as remolinos or cowlicks, and manner that the mortgagee could foreclose it
other marks of ownership as described and set forth Foreclosure
in the certificate of ownership of said animal/s, The mortgagee, his executor, administrator or assign
together with the number and place of issue of such may cause the mortgaged property or any part
certificates of ownership. thereof to be sold at a public auction by a public
officer:
Growing crops as chattel mortgage (1) After 30 days from the time of condition broken
The mortgage may contain an agreement stipulating (2) At a public place in the municipality where the
that the mortgagor binds himself properly to tend, mortgagor resides, or where the property is
care for and protect the crop while growing, and situated
faithfully and without delay to harvest the same, and (3) Provided at least 10 day-notice of the time, place,
that in default of the performance of such duties, the and purpose of such sale has been posted at 2 or
mortgagee may enter upon the premises, take all the more public places in such municipality, and
necessary measures for the protection of said crop, (4) The mortgagee, his executor, administrator, or
and retain possession thereof and sell the same, and assign shall notify the mortgagor or person
from the proceeds of such sale pay all expenses holding under him and the persons holding
incurred in caring for, harvesting, and selling the subsequent mortgages of the time and place of
crop and the amount of the indebtedness or sale at least 10 days previous to the sale:
obligation secured by the mortgage, and the surplus, (a) either by notice in writing directed to him or
if any, shall be paid to the mortgagor or those left at his abode, if within the municipality, or
entitled to the same. (b) sent by mail if he does not reside in such
municipality
PROPERTY COVERED BY CM
It is deemed to cover only the property described DISPOSITION OF PROCEEDS
therein and not like or substituted property The proceeds of the sale shall be applied to the
thereafter acquired by the mortgagor and placed in payment:
the same depository as the property originally (1) first, to the costs and expenses of mortgage
mortgaged, anything in the mortgage to the contrary (2) the residue shall be paid to persons holding
notwithstanding. [Sec. 8, Act 1508] subsequent mortgages in their order
(3) the balance, after paying the mortgages, shall be
Breaches paid to the mortgagor or person holding under
Failure of mortgagee to discharge the mortgage him on demand
If the mortgagee, assign, administrator, executor, or
either of them,
(1) after performance of the condition before or after
the breach thereof, or
(2) after tender of the performance of the condition,
Quasi-Contracts
at or after the time fixed for the performance,
A quasi-contract is that juridical relation resulting
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from a lawful, voluntary and unilateral act, and (5) Be personally liable for contracts which he
which has for its purpose the payment of indemnity entered into with third persons, even though he
to the end that no one shall be unjustly enriched or acted in the name of the owner, and there shall
benefited at the expense of another [Art. 2142] be no right of action between the owner and third
persons.
NEGOTIORUM GESTIO
(UNAUTHORIZED MANAGEMENT) The gestor shall not be personally liable for such
This takes place when a person voluntarily takes contracts, provided:
charge of another’s abandoned business or property (a) The owner has expressly or tacitly ratified the
without the owner’s authority [Art. 2144]. management, or
Reimbursement must be made to the gestor (i.e. one (b) When the contract refers to things pertaining
who carried out the business) for necessary and to the owner of the business. [Art. 2152]
useful expenses, as a rule.
Note: The responsibility of two or more gestors
THE OBLIGATION DOES NOT ARISE: shall be solidary, unless the management was
(1) When the property or business is not neglected or assumed to save the thing or business from
abandoned; imminent danger.
(2) If in fact the manager has been tacitly authorized
by the owner. OBLIGATIONS OF THE OWNER OF THE PROPERTY OR
BUSINESS
In the first case, the provisions of Articles 1317, 1403, Although the management was not expressly
No. 1, and 1404 regarding unauthorized contracts ratified, the owner who enjoys the advantages of the
shall govern. same shall:
(a) Be liable for the obligations incurred in his
In the second case, the rules on agency in Title X of interest
this Book shall be applicable. [Art. 2144] (b) Reimburse the gestor for the necessary and
useful expenses and for the damages the latter
OBLIGATIONS OF A GESTOR may have suffered in the performance of his
(1) Perform his duties with all the diligence of a good duties
father of a family
(2) Pay the damages which through his fault and The above obligations shall be incumbent upon the
negligence may be suffered by the owner of the owner if the management had for its purpose the
property/business under his management [Art. prevention of an imminent and manifest loss,
2145] although no benefit may have been derived. [Art.
(3) Be liable for the acts of the persons to whom he 2150]
delegated all or some of his duties. This is
without prejudice to the direct obligation of the If the owner did not derive any benefit and there was
delegate to the owner of the business. [Art. 2146] no imminent and manifest danger to the property or
(4) Be liable for any fortuitous event under the business, the owner would still be liable for the
following conditions: abovementioned obligations and expenses,
(a) If he undertakes risky operations which the provided:
owner was not accustomed to embark upon (a) The gestor has acted in good faith; AND
(b) If he has preferred his own interest to that of (b) The property or business is intact, ready to be
the owner returned to the owner. [Art. 2151]
(c) If he fails to return the property or business
after demand of the owner EFFECT OF RATIFICATION
(d) If he assumed management in bad faith [Art. The ratification of the management by the owner of
2147] the business produces the effects of an express
(e) If he is manifestly unfit to carry on the agency, even if the business may not have been
management successful. [Art. 2149]
(f) If by his intervention he prevented a more
competent person from taking up the EXTINGUISHMENT OF MANAGEMENT
management. [Art. 2148] (1) When the owner repudiates or puts an end
thereto
Note: The gestor shall not be liable for “e” and “f” (2) When the gestor withdraws from the
if the management was assumed to save the management, subject to [Art. 2144]
property or business from imminent danger.
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(3) By the death, civil interdiction, insanity or (2) For the return of the price or assign the action to
insolvency of the owner or the gestor. [Art. 2153] collect the sum if he has alienated the same. [Art.
2160]
SOLUTIO INDEBITI (UNDUE PAYMENT)
This takes place when something is received when EXEMPTION FROM THE OBLIGATION TO RESTORE THE
there is no right to demand it, and it was unduly PAYMENT UNDULY MADE
delivered through mistake. The recipient has the A person who, believing in good faith that the
duty to return it [Art. 2154]. payment was being made of a legitimate and
subsisting claim,
This situation covers payment by reason of a mistake (1) destroyed the document, or
in the construction or application of a doubtful or (2) allowed the action to prescribe, or
difficult question of law [Art. 2155] (3) gave up the pledges, or
(4) cancelled the guaranties for his right shall be
WHEN DEBT NOT YET DUE exempt from the obligation to restore.
If the payer was in doubt whether the debt was due,
he may recover if he proves that it was not due. [Art. The person who paid unduly may proceed only
2156] against the true debtor or the guarantors with regard
to whom the action is still effective. [Art. 2162]
RESPONSIBILITY OF TWO OR MORE PAYEES
When there has been payment of what is not due, PRESUMPTION OF PAYMENT BY MISTAKE, DEFENSE
their responsibility is solidary. The presumption arises if something which had
never been due or had already been paid was
WHEN MONEY OR THING DELIVERED IS OWNED BY THIRD delivered; but he from whom the return is claimed
PERSON may prove that the delivery was made out of
The payee cannot demand that the payor prove his liberality or for any other just cause.
ownership of the thing delivered.
Nevertheless, should he discover that the thing has OTHER QUASI-CONTRACTS
been stolen and who its true owner is, he must (1) When, without the knowledge of the person
advise the latter. obliged to give support, it is given by a stranger,
the latter shall have a right to claim the same
If the owner, in spite of such information, does not from the former, unless it appears that he gave it
claim it within the period of one month, the payee out of piety and without intention of being repaid.
shall be relieved of all responsibility by returning the [Art. 2164]
thing deposited to the payor. (2) When funeral expenses are borne by a third
person, without the knowledge of those relatives
If the payee has reasonable grounds to believe that who were obliged to give support to the
the thing has not been lawfully acquired by the deceased, said relatives shall reimburse the third
payor, the former may return the same. [Art. 2158] person, should the latter claim reimbursement.
[Art. 2165]
LIABILITY OF PAYEE (3) When the person obliged to support an orphan,
If in bad faith, he shall be liable: or an insane or other indigent person unjustly
(1) For legal interest if a sum of money is involved, or refuses to give support to the latter, any third
(2) For the fruits received or which should have been person may furnish support to the needy
received if the thing produces fruits individual, with right of reimbursement from the
AND person obliged to give support. The provisions of
(3) For any loss or impairment of the thing for any this article apply when the father or mother of a
cause, and child under eighteen years of age unjustly refuses
(4) For damages to the person who delivered the to support him. [Art. 2166]
thing, until it is recovered. [Art. 2159] (4) When through an accident or other cause a
person is injured or becomes seriously ill, and he
If in good faith, he shall be liable: is treated or helped while he is not in a condition
(1) For the impairment or loss of the thing certain to give consent to a contract, he shall be liable to
and determinable or its accessories and pay for the services of the physician or other
accessions insofar as he has thereby been person aiding him, unless the service has been
benefited. rendered out of pure generosity. [Art. 2167]
(5) When during a fire, flood, storm, or other
calamity, property is saved from destruction by
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another person without the knowledge of the (2) Claims arising from misappropriation, breach of
owner, the latter is bound to pay the former just trust, or malfeasance by public officials
compensation. [Art. 2168] committed in the performance of their duties, on
(6) When the government, upon the failure of any the movables, money or securities obtained by
person to comply with health or safety them;
regulations concerning property, undertakes to
do the necessary work, even over his objection, he (3) Claims for the unpaid price of movables sold, on
shall be liable to pay the expenses. [Art. 2169] said movables, so long as they are in the
(7) When by accident or other fortuitous event, possession of the debtor, up to the value of the
movables separately pertaining to two or more same; and if the movable has been resold by the
persons are commingled or confused, the rules debtor and the price is still unpaid, the lien may
on co-ownership shall be applicable. [Art. 2170] be enforced on the price; this right is not lost by
(8) The rights and obligations of the finder of lost the immobilization of the thing by destination,
personal property shall be governed by Articles provided it has not lost its form, substance and
719 and 720. [Art. 2171] identity; neither is the right lost by the sale of the
(9) The right of every possessor in good faith to thing together with other property for a lump
reimbursement for necessary and useful sum, when the price thereof can be determined
expenses is governed by Article 546. [Art. 2172] proportionally;
(10) When a third person, without the knowledge of
the debtor, pays the debt, the rights of the former (4) Credits guaranteed with a pledge so long as the
are governed by Articles 1236 and 1237. [Art. 2173] things pledged are in the hands of the creditor, or
(11) When in a small community a nationality of the those guaranteed by a chattel mortgage, upon
inhabitants of age decide upon a measure for the things pledged or mortgaged, up to the value
protection against lawlessness, fire, flood, storm thereof;
or other calamity, any one who objects to the plan
and refuses to contribute to the expenses but is (5) Credits for the making, repair, safekeeping or
benefited by the project as executed shall be preservation of personal property, on the
liable to pay his share of said expenses. [Art. 2174] movable thus made, repaired, kept or possessed;
(12) Any person who is constrained to pay the taxes
of another shall be entitled to reimbursement (6) Claims for laborers' wages, on the goods
from the latter. [Art. 2175] manufactured or the work done;
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leased and on the fruits of the same, but not on (9) Claims of donors or real property for pecuniary
money or instruments of credit; charges or other conditions imposed upon the
donee, upon the immovable donated;
(13) Claims in favor of the depositor if the depositary
has wrongfully sold the thing deposited, upon the (10) Credits of insurers, upon the property insured,
price of the sale. for the insurance premium for two years.
In the foregoing cases, if the movables to which the PREFERRED CREDITS ON OTHER PROPERTY,
lien or preference attaches have been wrongfully REAL AND PERSONAL [ART. 2244]
taken, the creditor may demand them from any With reference to other property, real and personal,
possessor, within thirty days from the unlawful of the debtor, the following claims or credits shall be
seizure. preferred in the order named:
(2) For the unpaid price of real property sold, upon iii. Expenses during the last illness of the debtor or
the immovable sold; of his or her spouse and children under his or her
parental authority, if they have no property of
(3) Claims of laborers, masons, mechanics and other their own;
workmen, as well as of architects, engineers and
contractors, engaged in the construction, iv. Compensation due the laborers or their
reconstruction or repair of buildings, canals or dependents under laws providing for indemnity
other works, upon said buildings, canals or other for damages in cases of labor accident, or illness
works; resulting from the nature of the employment;
(4) Claims of furnishers of materials used in the v. Credits and advancements made to the debtor
construction, reconstruction, or repair of for support of himself or herself, and family,
buildings, canals or other works, upon said during the last year preceding the insolvency;
buildings, canals or other works;
vi. Support during the insolvency proceedings, and
(5) Mortgage credits recorded in the Registry of for three months thereafter;
Property, upon the real estate mortgaged;
vii. Fines and civil indemnification arising from a
(6) Expenses for the preservation or improvement of criminal offense;
real property when the law authorizes
reimbursement, upon the immovable preserved viii. Legal expenses, and expenses incurred in the
or improved; administration of the insolvent's estate for the
common interest of the creditors, when properly
(7) Credits annotated in the Registry of Property, in authorized and approved by the court;
virtue of a judicial order, by attachments or
executions, upon the property affected, and only ix. Taxes and assessments due the national
as to later credits; government, other than those mentioned in
Articles 2241, No. 1, and 2242, No. 1;
(8) Claims of co-heirs for warranty in the partition of
an immovable among them, upon the real x. Taxes and assessments due any province, other
property thus divided; than those referred to in Articles 2241, No. 1, and
2242, No. 1;
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xi. Taxes and assessments due any city or thereof [Art. 2247]
municipality, other than those indicated in Articles (3) Those credits which enjoy preference in relation
2241, No. 1, and 2242, No. 1; to specific real property or real rights exclude all
others to the extent of the value of the
xii. Damages for death or personal injuries caused by immovable or real right to which the preference
a quasi-delict; refers [Art. 2248].
(4) If there are 2 or more credits with respect to the
xiii. Gifts due to public and private institutions of same specific real property or real rights, they shall
charity or beneficence; be satisfied pro rata, after the payment of the
taxes and assessment of the taxes and
xiv. Credits which, without special privilege, appear in assessments upon the immovable property or
(a) a public instrument; or (b) in a final judgment, real right [Art. 2249].
if they have been the subject of litigation. These (5) The excess, if any, after the payment of the
credits shall have preference among themselves credits which enjoy preference with respect to
in the order of priority of the dates of the specific property, real or personal, shall be
instruments and of the judgments, respectively. added to the free property which the debtor may
have, for the payment of other credits [Art.
EXEMPT PROPERTY 2250].
(1) Present property: (6) Those credits which do not enjoy any preference
(a) Family home. [Arts. 152, 153 and 155, CC] with respect to specific property, and those
(b) Right to receive support, as well as money or which enjoy preference, as to the amount not
property obtained by such support, shall not paid, shall be satisfied according to the
be levied upon on attachment or execution. following rules:
[Art. 205, CC] (a) Order established by Art 2244
(c) Sec. 13, Rule 39, ROC. (b) Common credits referred to in Art 2245 shall
(d) Sec 118, Public Land Act. [CA 141, as be paid pro rata regardless of dates [Art.
amended] 2251].
(2) Future property:
A debtor who obtains a discharge from his debts
on account of insolvency, is not liable for the
unsatisfied claims of his creditors with said
property. [Sec. 68 and 69, Insolvency Law, Act
1956]
(3) Property in custodia legis and of public dominion.
CLASSIFICATION OF CREDITS
(1) Special preferred credits. [Art. 2241 and 2242, CC]
(a) Considered as mortgages or pledges of real or
personal property or liens within the purview
of legal provisions governing insolvency.
(b) Taxes due to the State shall first be satisfied.
(2) Ordinary preferred credits [Art. 2244] – Preferred
in the order given by law.
(3) Common credits [Art. 2245] – Credits of any other
kind or class, or by any other right or title not
comprised in Arts. 2241- 2244 shall enjoy no
preference.
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Torrens System with the delay, uncertainty, and expense of the old
conveyancing system.
THE TORRENS SYSTEM: By "Torrens" system generally are meant those
A system for registration of land under which, upon systems of registration of transactions with interest
landowner’s application, the court may, after in land whose declared object… is, under
appropriate proceedings, direct the issuance of a governmental authority, to establish and certify to
certificate of title. (Black’s Law Dictionary) the ownership of an absolute and indefeasible title to
realty, and to simplify its transfer. (Grey-Alba v. Dela
The underlying principle of the Torrens system is Cruz, GR No. L-524)
security with facility in dealing with land. This is
made possible by defining the absolute status of a CERTIFICATE OF TITLE
given property in a certificate of title with a
governmental and universal guaranty. This ORIGINAL CERTIFICATE OF TITLE OR OCT
certificate of title should better be known as It is the first certificate of title issued in the name of a
certificate of title and encumbrances. In the words of registered owner by the Register of Deeds covering a
torrens himself the main objects are “to simplify, parcel of land which had been registered under the
quicken, and cheapen the transfer of real estate and Torrens System, by virtue of judicial or administrative
to render title safe and indefeasible.” (The Philippine proceedings.
Torrens System by Florencio Ponce 1964)
TRANSFER CERTIFICATE OF TITLE OR TCT
PURPOSE: The subsequent certificate of title pursuant to any
The real purpose of that system is to quiet title to deed of transfer or conveyance to another person.
land; to put a stop forever to any question of the The Register of Deeds shall make a new certificate of
legality of the title, except claims which were noted title and given him an owner’s duplicate certificate.
at the time of registration, in the certificate, or which The previous certificate (need not be an OCT) shall
may arise subsequent thereto. (Legarda v Saleeby, be stamped “cancelled”.
GR No. 8936)
Avoid possible conflicts of title in and to real property PATENTS
ADVANTAGES:
PD 1529, Sec. 103. Certificates of title pursuant to
(a) Secures title patents. Whenever public land is by the Government
(b) Protection against fraud alienated, granted or conveyed to any person, the
(c) Simplified dealings same shall be brought forthwith under the operation
(d) Restoration of the estates to its just value, whose of this Decree.
depreciation is cause by some blur, technical
defect It shall be the duty of the official issuing the
(e) Barred the recurrence of faults in the title (See instrument of alienation, grant, patent or conveyance
Legarda v. Saleeby) in behalf of the Government to cause such
instrument to be filed with the Register of Deeds of
BACKGROUND:
the province or city where the land lies, and to be
The boldest effort to grapple with the problem of there registered like other deeds and conveyance,
simplification of title to land was made by Mr. whereupon a certificate of title shall be entered as in
(afterwards Sir Robert) Torrens, a layman, in South other cases of registered land, and an owner's
Australia in 1857. . . . In the Torrens system title by duplicate issued to the grantee.
registration takes the place of "title by deeds" of the
system under the "general" law. A sale of land, for The deed, grant, patent or instrument of conveyance
example, is effected by a registered transfer, upon from the Government to the grantee shall not take
which a certificate of title is issued. The certificate is effect as a conveyance or bind the land but shall
guaranteed by statute, and, with certain exceptions, operate only as a contract between the Government
constitutes indefeasible title to the land mentioned and the grantee and as evidence of authority to the
therein. Under the old system the same sale would Register of Deeds to make registration.
be effected by a conveyance, depending for its
validity, apart from intrinsic flaws, on the correctness It is the act of registration that shall be the operative
of a long series of prior deeds, wills, etc. . . . The act to affect and convey the land, and in all cases
object of the Torrens system, them, is to do away under this Decree, registration shall be made in the
office of the Register of Deeds of the province or city
where the land lies. The fees for registration shall be
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paid by the grantee. After due registration and been held prior the Spanish conquest and never to
issuance of the certificate of title, such land shall be have been public land.
deemed to be registered land to all intents and
purposes under this Decree. EFFECTS
All lands of public domain belong to the state, and
Note: that the State is the source of any asserted right to
(a) Patents only involve public lands which are ownership in land and charged with the conservation
alienated by the Government, pursuant to the of such patrimony (Republic v IAC, GR No. 71285)
Public Land Act.
(b) The patent (even if denominated as deed of Any applicant for judicial confirmation of an
conveyance) is not really a conveyance but a imperfect title has the burden of proving, by
contract between the grantee and the incontrovertible evidence, that the (a) land applied
Government and evidence of authority to the for is alienable and disposable public land; and, (b)
Register of Deeds to make registration. the applicant, by himself or through his
(c) The act of registration is the operative act to affect predecessors-in-interest had occupied and
and convey the land. possessed the land, in the concept of owner, openly,
continuously, exclusively, and adversely since June
General Rule: A Torrens Certificate of Title is valid 12, 1945, or earlier. (Pelbel Manufacturing Corp. v. CA,
and enforceable against the whole world. GR No. 141325)
A Torrens title, once registered, cannot be defeated, CONCEPT OF NATIVE TITLE, TIME IMMEMORIAL
even by adverse, open and notorious possession. A POSSESSION
registered title under the Torrens system cannot be A recognized exception to the theory of jura regalia,
defeated by prescription. The title, once registered, the ruling in Carino v Insular Government
is notice to the whole world. All persons must take institutionalized the recognition of the existence of
notice. No one can plead ignorance of the native title to land, or ownership of land by Filipinos
registration. (Egao vs. CA, 1989) by virtue of possession under a claim of ownership
since time immemorial and independent of any grant
from the Spanish Crown (Agcaoli)
Regalian Doctrine Lands under native title are not part of public
domain, “lands possessed by an occupant and his
predecessors since time immemorial, such
A western legal concept that was first introduced by possession would justify the presumption that the
the Spaniards into the country through the laws of land had never been part of the public domain or
the Indies and the Royal Cedulas. Whereby the that it had been private property even before the
Philippines passed to Spain by virtue of “discovery” Spanish conquest (Republic v CA, GR No. 130174)
and conquest. Consequently, all lands became the
exclusive patrimony and dominion of the Spanish
Crown. (Agcaoli)
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The 1935 Constitution reserved the right xxx for Where the land is Owned in common, all the
Filipino citizens or corporations at least sixty percent co-owners shall file the application jointly.
of the capital of which was owned by Filipinos.
Aliens, whether individuals or corporations, have Where the land has been sold under Pacto de
been disqualified from acquiring public lands; hence retro, the vendor a retro may file an
they have also been disqualified from acquiring application for the original registration of the
private lands. (Krivenko v ROD, GR No. L-630: Ong land, provided, however, that should the
Ching Po v CA, GR. No. 113427) period for redemption expire during the
pendency of the registration proceedings and
Non-Filipinos cannot acquire or hold title to private ownership to the property consolidated in the
lands of public domain, except only by way of legal vendee a retro, the latter shall be substituted
succession (Halili v CA, GR No. 113539); BASIS Sec 2, for the applicant and may continue the
5 Art XII Constitution proceedings.
Private corporations may not hold alienable lands of Lands acquired by an American citizen prior the
the public domain except by lease for a period not proclamation of Philippine Independence on July 4,
exceeding twenty-five years, renewable for not more 1946 but after the passage of the 1935 Constitution
than twenty-five years, and not to exceed one may be registered, based on the ordinance
thousand hectares in area. (1987 Constitution, Art. XII, appended to the 1935 Constitution (See: Moss v
Sec. 3) Director of Lands, GR No. L-27170)
Private lands may be owned for as long as the Land sold to an alien which is now in the hands of a
corporation is at least 60% Filipino: naturalized citizen can no longer be annulled (De
(a) Provided that at the time the corporation Castro v Tan, GR No. L-31956). The litigated property
acquired the land, it is under private ownership. is now in the hands of a naturalized Filipino. It is no
(b) Additional Requirements: (OCEN-PAAL) longer owned by a disqualified vendee. The purpose
(1) Those who by themselves or through their of the prohibition ceases to be applicable. (Barsobia v
predecessors-in-interest have been in Open, Cuenco, GR No. L-33048)
continuous, exclusive and notorious
possession and occupation of alienable and
disposable lands of the public domain under a
bona fide claim of ownership since June 12,
1945, or earlier.
Original Registration
(2) Those who have acquired ownership of private
WHO MAY APPLY
lands by Prescription under the provision of
existing laws.
(3) Those who have acquired ownership of private under pd 1529
lands or abandoned river beds by right of The following persons may file an application for
Accession or accretion under the existing laws. registration of title to land:
(4) Those who have acquired ownership of land in
any other manner provided for by Law. (1) Those who by themselves or through their
predecessors-in-interest have been in open,
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continuous, exclusive and notorious possession slope of eighteen percent (18%) or more, are hereby
and occupation of alienable and disposable lands classified as alienable and disposable agricultural
of the public domain under a bona fide claim of lands.
ownership since June 12, 1945, or earlier.
The option granted under this Section shall be
(2) Those who have acquired ownership of private exercised within twenty (20) years from the approval
lands by prescription under the provision of of this Act.
existing laws.
Sec. 51. Delineation and Recognition of Ancestral
(3) Those who have acquired ownership of private Domains. Self-delineation shall be the guiding
lands or abandoned river beds by right of principle in the identification and delineation of
accession or accretion under the existing laws. ancestral domains. As such, the ICCs/IPs concerned
shall have a decisive role in all the activities pertinent
(4) Those who have acquired ownership of land in thereto. The Sworn Statement of the Elders as to the
any other manner provided for by law. Scope of the territories and agreements/pacts made
with neighboring ICCs/IPs, if any, will be essential to
UNDER CA 141
the determination of these traditional territories. The
Sec. 12. Any citizen of the Philippines over the age of Government shall take the necessary steps to
eighteen years, or the head of a family, who does not identify lands which the ICCs/IPs concerned
own more than twenty-four hectares of land in the traditionally occupy and guarantee effective
Philippines or has not had the benefit of any protection of their rights of ownership and
gratuitous allotment of more than twenty-four possession thereto. Measures shall be taken in
hectares of land since the occupation of the appropriate cases to safeguard the rights of the
Philippines by the United States, may enter a ICCs/IPs concerned to land which may no longer be
homestead of not exceeding twenty-four hectares of exclusively occupied by them, but to which they have
agricultural land of the public domain. traditionally had access for their subsistence and
traditional activities, particularly of ICCs/IPs who are
UNDER RA 8371 still nomadic and/or shifting cultivators.
Sec. 11. Recognition of Ancestral Domain Rights. The
rights of ICCs/IPs to their ancestral domains by Sec. 52. Delineation Process.- The identification and
virtue of Native Title shall be recognized and delineation of ancestral domains shall be done in
respected. Formal recognition, when solicited by accordance with the following procedures:
ICCs/IPs concerned, shall be embodied in a (a) Ancestral Domains Delineated Prior to this Act -
Certificate of Ancestral Domain Title (CADT), which The provisions hereunder shall not apply to
shall recognize the title of the concerned ICCs/IPs ancestral domains/lands already delineated
over the territories identified and delineated. according to DENR Administrative Order No. 2,
series of 1993, nor to ancestral lands and
Sec. 12. Option to Secure Certificate of Title under domains delineated under any other
Commonwealth Act 141, as amended, or the Land community/ancestral domain program prior to
Registration Act 496. Individual members of cultural the enactment of his law. ICCs/IPs enactment of
communities, with respect to individually-owned this law shall have the right to apply for the
ancestral lands who, by themselves or through their issuance of a Certificate of Ancestral Domain
predecessors-in -interest, have been in continuous Title (CADT) over the area without going
possession and occupation of the same in the through the process outlined hereunder;
concept of owner since time immemorial or for a (b) Petition for Delineation - The process of
period of not less than thirty (30) years immediately delineating a specific perimeter may be initiated
preceding the approval of this Act and uncontested by the NCIP with the consent of the ICC/IP
by the members of the same ICCs/IPs shall have the concerned, or through a Petition for Delineation
option to secure title to their ancestral lands under filed with the NCIP, by a majority of the
the provisions of Commonwealth Act 141, as members of the ICCs/IPs;
amended, or the Land Registration Act 496. (c) Delineation Paper - The official delineation of
ancestral domain boundaries including census
For this purpose, said individually-owned ancestral of all community members therein, shall be
lands, which are agricultural in character and immediately undertaken by the Ancestral
actually used for agricultural, residential, pasture, Domains Office upon filing of the application by
and tree farming purposes, including those with a the ICCs/IPs concerned. Delineation will be
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done in coordination with the community publication: Provided, That in areas where no
concerned and shall at all times include genuine such newspaper exists, broadcasting in a radio
involvement and participation by the members station will be a valid substitute: Provided,
of the communities concerned; further, That mere posting shall be deemed
(d) Proof required - Proof of Ancestral Domain sufficient if both newspaper and radio station
Claims shall include the testimony of elders or are not available;
community under oath, and other documents (h) Endorsement to NCIP - Within fifteen (15) days
directly or indirectly attesting to the possession from publication, and of the inspection process,
or occupation of the area since time immemorial the Ancestral Domains Office shall prepare a
by such ICCs/IPs in the concept of owners which report to the NCIP endorsing a favorable action
shall be any one (1) of the following authentic upon a claim that is deemed to have sufficient
documents: proof. However, if the proof is deemed
(1) Written accounts of the ICCs/IPs customs insufficient, the Ancestral Domains Office shall
and traditions; require the submission of additional evidence:
(2) Written accounts of the ICCs/IPs political Provided, That the Ancestral Domains Office
structure and institution; shall reject any claim that is deemed patently
(3) Pictures showing long term occupation such false or fraudulent after inspection and
as those of old improvements, burial verification: Provided, further, That in case of
grounds, sacred places and old villages; rejection, the Ancestral Domains Office shall
(4) Historical accounts, including pacts and give the applicant due notice, copy furnished all
agreements concerning boundaries entered concerned, containing the grounds for denial.
into by the ICCs/IPs concerned with other The denial shall be appealable to the NCIP:
ICCs/IPs; Provided, furthermore, That in cases where there
(5) Survey plans and sketch maps; are conflicting claims, the Ancestral Domains
(6) Anthropological data; Office shall cause the contending parties to
(7) Genealogical surveys; meet and assist them in coming up with a
(8) Pictures and descriptive histories of preliminary resolution of the conflict, without
traditional communal forests and hunting prejudice to its full adjudication according to the
grounds; selection below.
(9) Pictures and descriptive histories of (i) Turnover of Areas Within Ancestral Domains
traditional landmarks such as mountains, Managed by Other Government Agencies - The
rivers, creeks, ridges, hills, terraces and the Chairperson of the NCIP shall certify that the
like; and area covered is an ancestral domain. The
(10) Write-ups of names and places derived from secretaries of the Department of Agrarian
the native dialect of the community. Reform, Department of Environment and
(e) Preparation of Maps - On the basis of such Natural Resources, Department of the Interior
investigation and the findings of fact based and Local Government, and Department of
thereon, the Ancestral Domains Office of the Justice, the Commissioner of the National
NCIP shall prepare a perimeter map, complete Development Corporation, and any other
with technical descriptions, and a description of government agency claiming jurisdiction over
the natural features and landmarks embraced the area shall be notified thereof. Such
therein; notification shall terminate any legal basis for
(f) Report of Investigation and Other Documents - A the jurisdiction previously claimed;
complete copy of the preliminary census and a (j) Issuance of CADT - ICCs/IPs whose ancestral
report of investigation, shall be prepared by the domains have been officially delineated and
Ancestral Domains Office of the NCIP; determined by the NCIP shall be issued a CADT
(g) Notice and Publication - A copy of each in the name of the community concerned,
document, including a translation in the native containing a list of all those identified in the
language of the ICCs/IPs concerned shall be census; and
posted in a prominent place therein for at least (k) Registration of CADTs - The NCIP shall register
fifteen (15) days. A copy of the document shall issued certificates of ancestral domain titles and
also be posted at the local, provincial and certificates of ancestral lands titles before the
regional offices of the NCIP, and shall be Register of Deeds in the place where the
published in a newspaper of general circulation property is situated.
once a week for two (2) consecutive weeks to
allow other claimants to file opposition thereto Sec. 53. Identification, Delineation and Certification of
within fifteen (15) days from the date of such
Ancestral Lands.
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(a) The allocation of lands within any ancestral meritorious, shall cause a parcellary survey of the
domain to individual or indigenous corporate area being claimed. The Ancestral Domains office
(family or clan) claimants shall be left to the shall reject any claim that is deemed patently
ICCs/IPs concerned to decide in accordance with false or fraudulent after inspection and
customs and traditions; verification. In case of rejection, the Ancestral
Domains office shall give the applicant due
(b) Individual and indigenous corporate claimants of notice, copy furnished all concerned, containing
ancestral lands which are not within ancestral the grounds for denial. The denial shall be
domains, may have their claims officially appealable to the NCIP. In case of conflicting
established by filing applications for the claims among individual or indigenous corporate
identification and delineation of their claims with claimants, the Ancestral domains Office shall
the Ancestral Domains Office. An individual or cause the contending parties to meet and assist
recognized head of a family or clan may file such them in coming up with a preliminary resolution
application in his behalf or in behalf of his family of the conflict, without prejudice to its full
or clan, respectively; adjudication according to Sec. 62 of this Act. In
all proceedings for the identification or
(c) Proofs of such claims shall accompany the delineation of the ancestral domains as herein
application form which shall include the provided, the Director of Lands shall represent
testimony under oath of elders of the community the interest of the Republic of the Philippines;
and other documents directly or indirectly and
attesting to the possession or occupation of the
areas since time immemorial by the individual or (g) The Ancestral Domains Office shall prepare and
corporate claimants in the concept of owners submit a report on each and every application
which shall be any of the authentic documents surveyed and delineated to the NCIP, which shall,
enumerated under Sec. 52 (d) of this act, in turn, evaluate or corporate (family or clan)
including tax declarations and proofs of payment claimant over ancestral lands.
of taxes;
Sec. 54. Fraudulent Claims.- The Ancestral Domains
(d) The Ancestral Domains Office may require from Office may, upon written request from the ICCs/IPs,
each ancestral claimant the submission of such review existing claims which have been fraudulently
other documents, Sworn Statements and the like, acquired by any person or community. Any claim
which in its opinion, may shed light on the found to be fraudulently acquired by, and issued to,
veracity of the contents of the application/claim; any person or community may be cancelled by the
NCIP after due notice and hearing of all parties
(e) Upon receipt of the applications for delineation concerned.
and recognition of ancestral land claims, the
Ancestral Domains Office shall cause the
publication of the application and a copy of each Sec. 55. Communal Rights.- Subject to Section 56
document submitted including a translation in hereof, areas within the ancestral domains, whether
the native language of the ICCs/IPs concerned in delineated or not, shall be presumed to be
a prominent place therein for at least fifteen (15) communally held: Provide, That communal rights
days. A copy of the document shall also be under this Act shall not be construed as co-
posted at the local, provincial, and regional ownership as provided in Republic Act. No. 386,
offices of the NCIP and shall be published in a otherwise known as the New Civil Code.
newspaper of general circulation once a week for
two (2) consecutive weeks to allow other REGISTRATION PROCESS AND REQUIREMENTS
claimants to file opposition thereto within fifteen (1) Survey
(15) days from the date of such publication: (2) Application
Provided, That in areas where no such newspaper (3) Initial Hearing
exists, broadcasting in a radio station will be a (4) Publication
valid substitute: Provided, further, That mere (5) Opposition
posting shall be deemed sufficient if both (6) Hearing
newspapers and radio station are not available. (7) Judgment
(8) Issuance of Decree
(f) Fifteen (15) days after such publication, the
Ancestral Domains Office shall investigate and WHAT LANDS ARE REGISTRABLE:
inspect each application, and if found to be (a) Private Lands
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APPLICATION PUBLICATION
The application for land registration shall be: The public shall be given notice of the initial hearing
(a) in writing of the application for land registration by means of
(b) signed and sworn to by the applicant/duly (1) publication; (2) mailing; and (3) posting. (PD 1529,
authorized person, and if more than one Sec. 23)
applicant, it shall be signed and sworn to by and
in behalf of each By publication
The Commissioner of Land Registration shall cause
It shall contain: it to be published: once in the Official Gazette
(a) a description of the land (sufficient to confer jurisdiction) and once in a
(b) citizenship and civil status of the applicant newspaper of general circulation in the Philippines
(c) if married, the name of the wife or husband
(d) if the marriage has been legally dissolved, when and The notice is addressed to:
how (a) all persons appearing to have an interest in the
(e) full names and addresses of all occupants and land the adjoining owners so far as known "to all
those of the adjoining owners, if known whom it may concern"
(f) if not known, it shall state the extent of the search
made to find them. (Sec. 15, PD 1529) By mailing
Within 7 days from publication in the OG, the
Note: It must be accompanied by the original tracing Commissioner of Land Registration (CLR) shall mail a
cloth plan, white or blue copies thereof, the original copy of the notice to:
and copies of the technical description and geodetic (a) Every person named in the notice whose address
engineer’s certification. is known.
(b) the Secretary of Public Highways, to the
Special Cases: Provincial Governor, and to the Mayor of the
(a) If the land bounded by a road, the applicant must municipality or city, in which the land lies, if the
state in his application if he claims any portion of applicant requests to have the line of a public
the land within the limits of the road, or if he likes way or road determined
to have the boundaries determined. (Sec. 20, PD (c) Secretary of Agrarian Reform, the Solicitor
1529) General, the Director of Lands, the Director of
(b) If the applicant is a non-resident, he shall appoint Mines and/or the Director of Fisheries and
an agent or representative who is a Philippine Aquatic Resources, (as appropriate) if the land
resident. (Sec. 16, PD 1529) borders on a river, navigable stream or shore, or
(c) Intestate Estate of Don Mariano San Pedro vs. CA on an arm of the sea where a river or harbor line
(1996): A person claiming ownership of real has been established, or on a lake, or if it
property must clearly identify the land claimed by otherwise appears from the application or the
him. proceedings that a tenant-farmer or the national
(d) In re: Application for Land Registration vs. Republic government may have a claim adverse to that of
(2008, Nachura): An applicant in a land the applicant
registration case must prove the facts and
circumstances evidencing the alleged ownership By posting
of the land applied for. General statements CLR shall cause the sheriff or his deputy to post the
which are mere conclusions of law and not notice at least 14 days before the hearing: in a
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an innocent lessee, mortgagee, or other not among the grounds for forcible entry and
encumbrancer for value.) unlawful detainer, or when possession has been lost
for more than one year and can no longer be
Arguelles vs. Timbancaya (1976): The rule on the maintained under Rule 70 of the Rules of Court.
incontrovertible nature of a certificate of title applies
when what is involved is the validity of the OCT, not The objective of the plaintiffs in accion publiciana is
when it concerns that of the TCT. to recover possession only, not ownership. The
Velascos were able to establish lawful possession of
IMPRESCRIPTIBLE the land when the Padillas occupied the property.
PD 1529, Sec 47. Registered land not subject to The OCT was issued to the original owners who then
prescriptions. No title to registered land in derogation sold the land to Artemio.
of the title of the registered owner shall be acquired
by prescription or adverse possession. From then on, he was in continuous possession of
the land until his death. It was only in 1987, when
the Padillas occupied the property. The argument
Barcelona vs. Barcelona (1956): Prescription is
that the lots are one and the same is a collateral attack
unavailing not only against the registered owner but
on the title over the property which is registered in the
also against his hereditary successors because the
name of Artemio, which cannot be countenanced.
latter merely step into the shoes of the decedent by
operation of law and are merely the continuation of
the personality of their predecessor-in-interest. Remedies of the Aggrieved Party
Motion for New 15 days from notice of judgment
NOT SUBJECT TO COLLATERAL ATTACK Trial
Grounds:
PD 1529, Sec 48. Certificate not subject to collateral
(a) Fraud, accident, mistake,
attack. A certificate of title shall not be subject to
excusable negligence
collateral attack. It cannot be altered, modified, or
(b) Newly discovered evidence
canceled except in a direct proceeding in accordance
(c) Awarded excessive
with law.
damages, or insufficiency of
evidence, or that the
Spouses Padilla vs. Velasco, et. al, G.R. No. 169956 decision is against law
(2009, Nachura) Appeal (d) 15 days from notice
Facts: Velasco et al (respondents) are the heirs of (e) appealable to the CA or to
Artemio who died, leaving a parcel of land. He the SC in the same manner
acquired it by virtue of a deed of sale in his favor. as in ordinary actions
The Padilla sps (petitioners) entered the land as Relief from (f) 60 days after petitioner
trustees by virtue of a deed of sale executed by a Judgment learns of judgment, but not
bank in favor of the Solomon sps. Velascos more than 6 months after
demanded that the Padillas vacate the property. judgment was entered
(g) Grounds: Fraud, accident,
Padillas cut trees, built a house and harvested crops. mistake, excusable
Velascos filed a complaint for accion publiciana negligence
before the RTC. Velascos presented deed of sale in Petition for Requisites: (Walstrom vs. Mapa,
favor of Artemio, while Padillas presented deed of Review 1990)
sale between bank and Solomons. (h) petitioner must have an
estate or interest in the land
The Padillas also argue that the Solomon sps (i) he must show actual fraud
acquired the land in good faith and for value and (j) petition must be filed within
that they argue that Lot 2161 (the one they are one year form the issuance
occupying) and Lot 76-pt (the lot the Solomon of the decree by LRA
spouses bought) are one and the same. (k) property has not yet passed
to an innocent purchaser for
Held: The Velascos have a better right to the land. value.
The instant case is for accion publiciana, or for Grounds:
recovery of the right to possess. (l) extrinsic fraud,
(m)void decision for want of
Accion publiciana is also used to refer to an due process
ejectment suit where the cause of dispossession is (n) lack of jurisdiction
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(d) Leung Yee vs. Strong Machinery, (1918): When party whether such person resides within or without the
concerned has actual knowledge of facts and Philippines, but the court may, in its discretion,
circumstances that would impel a reasonably require further or other notice to be given in any
cautious man to make inquiry. case, if in its opinion the interest of justice so
(e) Jamoc vs. CA, (1991): When purchaser is in bad faith; requires.
e.g. he had full knowledge of a previous sale.
(f) Quiniano vs. CA, (1971): When a person buys land from PD 1529, Sec 56. Primary Entry Book; fees; certified
one whose rights over the land is evidenced only by a copies. Each Register of Deeds shall keep a primary
deed of sale and an annotation in the certificate of entry book in which, upon payment of the entry fee,
title but no TCT. he shall enter, in the order of their reception, all
instruments including copies of writs and processes
VOLUNTARY DEALINGS filed with him relating to registered land.
A similar memorandum shall also be made on the Every deed or other instrument, whether voluntary or
owner's duplicate. The cancellation or involuntary, so filed with the Register of Deeds shall
extinguishment of such interests shall be registered be numbered and indexed and endorsed with a
in the same manner. reference to the proper certificate of title. All records
and papers relative to registered land in the office of
PD 1529, Sec 55. Grantee's name, nationality, etc., to the Register of Deeds shall be open to the public in
be stated. Every deed or other voluntary instrument the same manner as court records, subject to such
presented for registration shall contain or have reasonable regulations as the Register of Deeds,
endorsed upon it the full name, nationality, under the direction of the Commissioner of Land
residence and postal address of the grantee or other Registration, may prescribe.
person acquiring or claiming an interest under such
instrument, and every deed shall also state whether All deeds and voluntary instruments shall be
the grantee is married or unmarried, and if married, presented with their respective copies and shall be
the name in full of the husband or wife. attested and sealed by the Register of Deeds,
endorsed with the file number, and copies may be
If the grantee is a corporation or association, the delivered to the person presenting them.
instrument must contain a recital to show that such
corporation or association is legally qualified to Certified copies of all instruments filed and
acquire private lands. Any change in the residence or registered may also be obtained from the Register of
postal address of such person shall be endorsed by Deeds upon payment of the prescribed fees.
the Register of Deeds on the original copy of the
corresponding certificate of title, upon receiving a Process of registration
sworn statement of such change. All names and (1) File instrument creating or transferring interest
addresses shall also be entered on all certificates. and certificate of title with Register of Deeds
together with:
Notices and processed issued in relation to (a) Owner’s duplicate
registered land in pursuance of this Decree may be (b) Payment of fees & documentary stamp tax
served upon any person in interest by mailing the (c) Evidence of full payment of real estate tax
same to the addresses given, and shall be binding, (d) Document of transfer – 1 copy additional for
city/provincial assessor
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(2) Register of Deeds shall make a memorandum on If there are subsisting encumbrances and annotations
the certificate of title, signed by him They shall be carried over in the new certificate or
(3) TCT shall then be issued certificates; except when they have been
simultaneously discharged.
Note:
(a) If the grantee is a corporation or association, it MORTGAGES AND LEASES
must show that it is qualified to acquire private PD 1529, Sec 60. Mortgage or lease of registered land.
lands. Mortgage and leases shall be registered in the
(b) PNB vs. Fernandez (1935): The issuance of a new manner provided in Section 54 of this Decree.
transfer certificate without presentation of an
owner’s duplicate is unwarranted and confers no The owner of registered land may mortgage or lease
right on the purchaser it by executing the deed in a form sufficient in law.
(c) RA 456 prohibits registration of documents Such deed of mortgage or lease and all instruments
affecting real property which is delinquent in the which assign, extend, discharge or otherwise deal
payment of real estate taxes. Further, if evidence with the mortgage or lease shall be registered, and
of such payment is not presented with 15 days shall take effect upon the title only from time of
from the date of entry of said document in the registration.
primary entry book of the register of deeds the
entry shall be deemed cancelled. No mortgagee's or lessee's duplicate certificate of
(d) Pay fees and DST (government is exempt) title shall hereafter be issued by the Registers of
(e) The instruments are regarded as registered from Deeds, and those issued prior to the effectivity of this
the time ROD enters them in his book. Decree are hereby deemed canceled and the holders
thereof shall immediately surrender the same to the
REGISTRATION OF DEEDS OF SALE AND TRANSFERS Register of Deeds concerned.
If entire property is subject (PD 1529, Sec 57)
(a) Owner executes and registers the deed which
must be sufficient in form. PD 1529, Sec 61. Registration. Upon presentation for
(b) A new certificate of title is issued and Register of registration of the deed of mortgage or lease
Deeds prepares and delivers to grantee his together with the owner's duplicate, the Register of
owner's duplicate certificate Deeds shall enter upon the original of the certificate
(c) Register of Deeds notes upon the OCT and the of title and also upon the owner's duplicate
duplicate certificate the date of transfer, the certificate a memorandum thereof, the date and
volume and page of the registration book where time of filing and the file number assigned to the
the new certificate is registered deed, and shall sign the said memorandum.
(d) The original and the owner's duplicate of the
grantor's certificate shall be stamped "canceled". He shall also note on the deed the date and time of
(e) The deed of conveyance shall be filed and filing and a reference to the volume and page of the
indorsed with the number and the place of registration book in which it is registered.
registration of the certificate of title of the land
conveyed. Mortgage and leases shall be registered in the
manner provided for in Section 54.
If only a portion of property is subject (PD 1529, Sec When a deed of mortgage or lease is presented, ROD
58) will enter upon the OCT and upon the owner’s
(a) Include a plan which shows all the portions duplicate a memorandum thereof and shall sign.
already subdivided with verified and approved
technical description. POWERS OF ATTORNEY; TRUSTS
(b) That plan with the certified copy of the technical PD 1529, Sec 64. Power of attorney. Any person may,
descriptions shall be filed with the Register of by power of attorney, convey or otherwise deal with
Deeds for annotation in the TCT. registered land and the same shall be registered
(c) Register of Deeds shall issue a TCT and cancel with the Register of Deeds of the province or city
the grantor's certificate partially OR it may be where the land lies. Any instrument revoking such
canceled totally and a new one issued describing power of attorney shall be registered in like manner.
therein the remaining portion
PD 1529, Sec 65. Trusts in registered land. If a deed or
other instrument is filed in order to transfer
registered land in trust, or upon any equitable
condition or limitation expressed therein, or to create
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or declare a trust or other equitable interests in such claim doesn’t affect the title of a purchaser for
land without transfer, the particulars of the trust, value and in good faith before its registration.
condition, limitation or other equitable interest shall
not be entered on the certificate; but only a INVOLUNTARY DEALINGS
memorandum thereof shall be entered by the words
"in trust", or "upon condition", or other apt words, ATTACHMENT
and by a reference by number to the instrument A writ issued at the institution or during progress of
authorizing or creating the same. an action commanding the sheriff to attach the
property, rights, credits or effects of the defendant to
A similar memorandum shall be made upon the satisfy demands of the plaintiff
original instrument creating or declaring the trust or
other equitable interest with a reference by number Kinds
to the certificate of title to which it relates and to the (a) Preliminary
volume and page in the registration book in which it (b) Garnishment
is registered. (c) Levy on execution
PD 1529, Sec 66. Trust with power of sale, etc., how Registration of attachment/other liens
expressed. If the instrument creating or declaring a (a) Copy of writ in order to preserve any lien, right or
trust or other equitable interest contains an express attachment upon registered land shall be filed
power to sell, mortgage or deal with the land in any with the Register of Deeds where the land lies,
manner, such power shall be stated in the certificate containing number of certificate of title of land to
of title by the words "with power to sell", or "power to be affected or description of land (PD 1529, Sec
mortgage", or by apt words of description in case of 69)
other powers. (b) Register of Deeds to index attachment in names
of both plaintiff & defendant or name of person
No instrument which transfers, mortgages or in any whom property is held or in whose name stands
way deals with registered land in trust shall be in the records
registered, unless the enabling power thereto is (c) If duplicate of certificate of title is not presented:
expressly conferred in the trust instrument, or unless (1) Register of Deeds shall within 36 hours send
a final judgment or order of a court of competent notice to registered owner by mail stating that
jurisdiction has construed the instrument in favor of there has been registration & requesting him
the power, in which case a certified copy of such to produce duplicate so that memorandum be
judgment or order may be registered. made
(2) If owner neglects or refuses – Register of
Deeds shall report matter to court.
PD 1529, Sec 68. Implied, trusts, how established. (3) Court after notice shall enter an order to
Whoever claims an interest in registered land by owner to surrender certificate at time & place
reason of any implied or constructive trust shall file to be named therein.
for registration with the Register of Deeds a sworn (d) Although notice of attachment is not noted in
statement thereof containing a description of the duplicate, notation in book of entry of Register of
land, the name of the registered owner and a Deeds produces effect of registration already
reference to the number of the certificate of title.
Such claim shall not affect the title of a purchaser for Effect of registration of attachment
value and in good faith before its registration. (a) Creates real right
(b) Has priority over execution sale
(a) Powers of attorney and revocations shall be (c) But between 2 attachments – one that is earlier
registered with the Register of Deeds of the in registration is preferred
province or city where the land lies.
(b) To transfer registered land in trust without Duty of Register of Deeds
transfer, the particulars of the trust shall not be Ministerial but may refuse registration in the
entered on the certificate. Only a memorandum following circumstances:
shall be entered by the words "in trust", or "upon (1) Title to land is not in the name of defendant
condition". (2) No evidence is submitted to show that he has
(c) Power must be expressly conferred in the trust present or possible future interest in land
instrument.
(d) If implied or constructive trust, person claiming Exception: If petitioner is an heir
such must execute a sworn statement. But such
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EXECUTION AND TAX DELINQUENCY SALES sale) is made: cancellation of title & issuance of a
Execution sale new one
(a) To enforce a lien of any description on registered (e) Before cancellation, notice shall be sent to
land, any execution or affidavit to enforce such registered owner: to surrender title & show cause
lien shall be filed with Register of Deeds where why it shall not be cancelled
the land lies
(b) Register in the registration book & memorandum NOTE: Actual knowledge is equivalent to registration.
upon proper certificate of title as adverse claim or
as an encumbrance NOTICE OF LIS PENDENS
(c) To determine preferential rights between 2 liens: PD 1529, Sec. 76. Notice of lis pendens. No action to
priority of registration of attachment recover possession of real estate, or to quiet title
thereto, or to remove clouds upon the title thereof, or
Tax sale for partition, or other proceedings of any kind in court
(a) Sale of land for collection of delinquent taxes and directly affecting the title to land or the use or
penalties due the Government occupation thereof or the buildings thereon, and no
(b) In personam (all persons interested shall be judgment, and no proceeding to vacate or reverse
notified so that they are given opportunity to be any judgment, shall have any effect upon registered
heard) land as against persons other than the parties
(c) Notice to be given to delinquent tax payer at last thereto, unless a memorandum or notice stating the
known address institution of such action or proceeding and the court
(d) Publication of notice must also be made in wherein the same is pending, as well as the date of
English, Spanish & local dialect & posted in a the institution thereof, together with a reference to
public & conspicuous place in place wherein the number of the certificate of title, and an
property is situated & at the main entrance of the adequate description of the land affected and the
provincial building registered owner thereof, shall have been filed and
(e) Sale cannot affect rights of other lien holders registered.
unless they are given the right to defend their
rights: due process must be strictly observed Purpose
(f) Tax lien superior to attachment To keep the subject matter within the power of the
(g) No need to register tax lien because it is court until the entry of final judgment. It therefore
automatically registered once the tax accrues creates merely a contingency & not a lien.
(h) But sale of registered land to foreclose a tax lien
need to be registered. Effect of registration
(a) Impossibility of alienating the property in dispute
PD 1529, Sec 74. Enforcement of liens on registered during the pendency of the suit – may be
land. Whenever registered land is solved on alienated but purchaser is subject to final
execution, or taken or sold for taxes or for any outcome of pending suit
assessment or to enforce a lien of any character, or (b) Register of Deeds is duty bound to carry over
for any costs and charges incident to such liens, any notice of lis pendens on all new titles to be issued
execution or copy of execution, any officer's return, or
any deed, demand, certificate, or affidavit, or other Cancellation of lis pendens (PD 1529, Sec. 77)
instrument made in the course of the proceedings to (a) Before final judgment – court may order
enforce such liens and required by law to be cancellation after showing that notice is only for
recorded, shall be filed with the Register of Deeds of the purpose of molesting an adverse party or it is
the province or city where the land lies and not necessary to protect the rights of the party
registered in the registration book, and a who caused it to be registered
memorandum made upon the proper certificate of (b) Register of Deeds may also cancel upon verified
title in each case as lien or encumbrance. petition of the party who caused such registration
(c) Deemed cancelled when certificate of clerk of
Procedure of registration of tax sale court stating manner of disposal of proceeding is
(a) Officer’s return shall be submitted to Register of registered
Deeds together with duplicate title
(b) Register in the registration book Other parties who need to register
(c) Memorandum shall be entered in the certificate Assignee in involuntary proceeding for insolvency
as an adverse claim or encumbrance (a) Duty of the officer serving notice to file a copy of
(d) After the period of redemption has expired & no the notice to the Register of Deeds where the
redemption (2 years from registration of auction property of debtor lies
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(b) Assignee elected or appointed by court shall be thirty days, the claimant may withdraw his adverse
entitled to entry of new certificate of registered claim by filing with the Register of Deeds a sworn
land upon presentment of copy of assignment petition to that effect.
with bankrupt’s certificate of title (duplicate)
(c) New certificate shall note that it is entered to him When is a claim adverse?
as assignee or trustee in insolvency proceedings When a person claims any part or interest in
registered land adverse to the registered owner, after
Government in eminent domain date of the original registration
(a) Copy of judgment shall be filed in the Register of
Deeds which states description of property, Duration of an adverse claim
certificate number, interest expropriated, nature 30 days from the date of registration. After that the
of public use annotation of adverse claim may be cancelled upon
(b) Memorandum shall be made or new certificate of filing of a verified petition by the party in interest.
title shall be issued When cancelled, no second adverse claim based on
the same ground may be registered by the same
ADVERSE CLAIM claimant.
Sec. 70. Adverse claim. Whoever claims any part or
interest in registered land adverse to the registered Requisites
owner, arising subsequent to the date of the original The adverse claimant must give a statement, signed
registration, may, if no other provision is made in this and sworn before a notary public, of the following in
Decree for registering the same, make a statement in writing:
writing setting forth fully his alleged right or interest, (a) his alleged right or interest
and how or under whom acquired, a reference to the (b) how and under whom such alleged right or
number of the certificate of title of the registered interest is acquired
owner, the name of the registered owner, and a (c) the description of the land in which the right or
description of the land in which the right or interest interest is claimed and
is claimed. (d) the number of the certificate of title
(e) his residence or the place to which all notices may
The statement shall be signed and sworn to, and be served upon him.
shall state the adverse claimant's residence, and a
place at which all notices may be served upon him. NOTE: Non-compliance with the above requisites
This statement shall be entitled to registration as an renders the adverse claim non-registrable and
adverse claim on the certificate of title. The adverse ineffective.
claim shall be effective for a period of thirty days
from the date of registration. After the lapse of said
period, the annotation of adverse claim may be
canceled upon filing of a verified petition therefor by
the party in interest: Provided, however, that after
Non-registrable Properties
cancellation, no second adverse claim based on the NON-REGISTRABLE LANDS
same ground shall be registered by the same
claimant. 1987 Constitution, Art. XII, Sec. 2
All lands of the public domain, waters, minerals, coal,
Before the lapse of thirty days aforesaid, any party in petroleum, and other mineral oils, all forces of potential
interest may file a petition in the Court of First energy, fisheries, forests or timber, wildlife, flora and fauna,
Instance where the land is situated for the and other natural resources are owned by the State. xxx
cancellation of the adverse claim, and the court shall
grant a speedy hearing upon the question of the Civil Code, Art. 420
validity of such adverse claim, and shall render The following things are property of public dominion:
judgment as may be just and equitable. If the (1) Those intended for public use, such as roads,
adverse claim is adjudged to be invalid, the canals, rivers, torrents, ports and bridges
registration thereof shall be ordered canceled. constructed by the State, banks, shores,
roadsteads, and others of similar character;
If, in any case, the court, after notice and hearing, (2) Those which belong to the State, without being
shall find that the adverse claim thus registered was for public use, and are intended for some public
frivolous, it may fine the claimant in an amount not service or for the development of the national
less than one thousand pesos nor more than five wealth.
thousand pesos, in its discretion. Before the lapse of
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The following lands cannot be registered: the duplicate of the instrument, with appropriate
(a) Forest or timberlands annotation, certifying that he has recorded the
(b) Lands for public use: roads, ports and bridges, instrument after reserving one copy thereof to be
etc. furnished the provincial or city assessor as
(c) Lands which are owned by the State for public required by existing law.
service or development of national wealth
(d) Tax sale, attachment and levy, notice of lis
pendens, adverse claim and other instruments in
the nature of involuntary dealings with respect to
unregistered lands, if made in the form sufficient
Dealings with in law, shall likewise be admissible to record
under this section.
Unregistered Lands
(e) For the services to be rendered by the Register of
PD 1529, Sec 113. Recording of instruments relating to Deeds under this section, he shall collect the
unregistered lands. No deed, conveyance, mortgage, same amount of fees prescribed for similar
lease, or other voluntary instrument affecting land services for the registration of deeds or
not registered under the Torrens system shall be instruments concerning registered lands.
valid, except as between the parties thereto, unless
such instrument shall have been recorded in the Key points
manner herein prescribed in the office of the Register (1) The system of registration for unregistered land is
of Deeds for the province or city where the land lies. under the Torrens system.
(2) Before: covers voluntary dealings, now includes
(a) The Register of Deeds for each province or city involuntary dealings
shall keep a Primary Entry Book and a (3) Effect if prospective; binds 3rd persons after
Registration Book. The Primary Entry Book shall registration but yields to better rights of 3rd
contain, among other particulars, the entry person prior to registration (limited effect to 3rd
number, the names of the parties, the nature of parties) reason: no strict investigation involved
the document, the date, hour and minute it was (4) Subsequent dealings – also valid if recorded
presented and received. The recording of the (5) Register of deeds keeps day book & a register;
deed and other instruments relating to index system is also kept
unregistered lands shall be effected by any of
annotation on the space provided therefor in the Procedure
Registration Book, after the same shall have been (1) Presentment of instrument dealing in
entered in the Primary Entry Book. unregistered land
(2) If found in order – registered
(b) If, on the face of the instrument, it appears that it (3) If found defective – registration is refused writing
is sufficient in law, the Register of Deeds shall his reason for refusal
forthwith record the instrument in the manner
provided herein. In case the Register of Deeds
refuses its administration to record, said official
shall advise the party in interest in writing of the
ground or grounds for his refusal, and the latter
may appeal the matter to the Commissioner of
Land Registration in accordance with the
provisions of Section 117 of this Decree. It shall be
understood that any recording made under this
section shall be without prejudice to a third party
with a better right.
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Tanjanco v. CA (1966): However, when for one whole negligence of the defendant, the latter shall be liable
year, the plaintiff, a woman of legal age, maintained for indemnity if through the act or event he was
sexual relations with the defendant, with repeated benefited.
acts of intercourse, there is here voluntariness. No
case under Article 21 is made. Art. 2142. Certain lawful, voluntary and unilateral
acts give rise to the juridical relation of quasi-
MALICIOUS PROSECUTION contract to the end that no one shall be unjustly
Malicious prosecution is the institution of any action enriched or benefited at the expense of another.
or proceeding, either civil or criminal, maliciously and
without probable cause.
Art. 2143. The provisions for quasi contracts in this
Chapter do not exclude other quasi-contracts which
ELEMENTS:
may come within the purview of the preceding
(1) The fact of the prosecution and that the
article.
defendant was himself the prosecutor, and that
the action was finally terminated with an
acquittal One person should not be permitted to unjustly
(2) The prosecutor acted without probable cause enrich himself at the expense of another, but should
(3) The prosecutor was impelled by legal malice. be required to make restitution of, or for property or
benefits received, retained, or appropriated where it
is just and equitable that such restitution be made,
Que vs. IAC (1989): To constitute malicious and where much action involves no violation or
prosecution, there must be proof that the frustration of law or opposition to public policy,
prosecution was prompted by a sinister design to vex either directly or indirectly.
and humiliate a person and that it was initiated
deliberately by the defendant knowing that his While neither Art. 22 nor Art. 23 expressly provides
charges were false and groundless. Concededly, the for the effects of unjust enrichment, the Chapter on
mere act of submitting a case to the authorities for Quasi-Contracts (Articles 2159-2163), which
prosecution does not make one liable for malicious complements or supplements and should be so
prosecution. considered in appropriate cases, does.
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BASIS OF LIABILITY
Equity. An involuntary act, because of its character, The Tortfeasor
cannot generally create an obligation; but when by Worcester vs. Ocampo (1958): Tortfeasor refers to all
such act its author has been enriched, it is only just persons who command, instigate, promote,
that he should indemnify for the damages caused to encourage, advise, countenance, cooperate in, aid or
the extent of this enrichment. abet the commission of a tort, or who approve of it
after it is done, if done for their benefit.
SCOPE OF LIABILITY
The indemnity does not include unrealized profits of THE DIRECT TORTFEASOR
the injured party, because the defendant’s
Art. 2176. Whoever by act or omission causes damage
enrichment is the limit of his liability.
to another, there being fault or negligence, is obliged
to pay for the damage done.
(3) Strict Liability – one is liable independent of fault General Rule: proper defense is the exercise of the
or negligence. It only requires proof of a certain diligence of a good father of a family (bonus
set of facts. Liability here is based on the breach paterfamilias)
of an absolute duty to make something safe. It
most often applies to ultra-hazardous activities or Exception: common carriers, and all others subject to
in product liability cases. It is also known as extraordinary diligence.
“absolute liability” or liability without fault.”
Strict liability is imposed by articles 1314, 1711, 1712, BASIS OF VICARIOUS LIABILITY
1723, 2183, 2187, 2189, 2190, 2191, 2192, 2193. The basis of vicarious liability is NOT respondeat
superior; rather, it is the principle of pater familias.
ACCORDING TO SCOPE
GENERAL Respondeat Under American jurisprudence, it
Tort liability is based on any of the three categories: superior means that the negligence of the
intentional, negligent, strict liability servant is conclusively the negligence
of the master.
SPECIFIC
Includes trespass, assault, battery, negligence, Bonus pater Under the principle of pater familias,
products liability, and intentional infliction of familias the basis of the “master’s” liability is
emotional distress the negligence in the supervision of his
subordinates. The “master” will be
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(1) School
freed from liability if he can prove that
he had observed all the diligence of a (2) Administrators
good father of the family to prevent the (3) Teachers
(4) Individual, entity, or institution engaged in
damage.
child care
PRESUMPTION OF NEGLIGENCE ON PERSONS INDIRECTLY If there is just cause for separation, the responsibility
RESPONSIBLE ceases.
Liability arises by virtue of a presumption juris Note: The responsibility of the father and mother is
tantum of negligence on the part of the persons made not simultaneous but alternate.
responsible under the article, derived from their failure
to exercise due care and vigilance over the acts of the WHEN RESPONSIBILITY CEASES
subordinates to prevent them from causing damage. When parent is not in the position to exercise
authority and supervision over the child
The non-performance of certain duties of precaution
and prudence imposed upon the persons who MEANING OF “MINORITY”
become responsible by civil bond uniting the actor to Par. 2 and 3 of Art. 2180 speak of minors. Minors
them. here refer to those who are below 21 years of age,
NOT below 18 years. The law reducing the majority
age from 21 to 18 years old did not amend these
Tamargo v. CA (1992): The basis of this vicarious, pars.
although primary, liability is, as in Article 2176, fault
or negligence, which is presumed from that which Art. 236, par. 3 of the FC, as amended by RA 6809,
accompanied the causative act or omission. The provides:
presumption is merely prima facie and may therefore
be rebutted. “Nothing in this Code shall be construed to
derogate from the duty or responsibility of
NATURE OF LIABILITY parents and guardians for children and wards
The liability of the vicarious obligor is PRIMARY and below 21 years of age mentioned in the second
DIRECT (solidarily liable with the tortfesor), not and third paragraphs of 2180 of the Civil Code.”
subsidiary. His responsibility is not conditioned upon
ADOPTED CHILDREN
the insolvency of or prior recourse against the
negligent tortfeasor. Judicially adopted children are considered legitimate
children of their adopting parents. Thus, adopters
PERSONS VICARIOUSLY LIABLE (ART. 2180) are civilly liable for their tortious/ criminal acts if the
WHO ARE LIABLE FOR MINORS?
children live with them and are below 21 years of
(a) Parents (the father, and in case of his death or age.
incapacity, the mother)
ILLEGITIMATE CHILDREN
(b) Adopters
Responsibility is with the mother whom the law vests
(c) Court-appointed guardians
parental authority.
(d) Substitute Parental Authorities
(1) Grandparents REASON FOR VICARIOUS LIABILITY
(2) Oldest qualified sibling over 21 years old
Exconde vs. Capuno (1957): The civil liability which the law
(3) Child’s actual custodian, provided he is
qualified and over 21 years old. imposes upon the father and, in case of his death or
(e) Special Parental Authorities incapacity, the mother, for any damages that may be
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caused by the minor children who live with them, is PARENTAL AUTHORITY OVER FOUNDLINGS, ABANDONED,
obvious. This is a necessary consequence of the NEGLECTED OR ABUSED AND OTHER SIMILARLY SITUATED
parental authority they exercise over them which CHILDREN
imposes upon the parents the 'duty of supporting In case of foundlings, abandoned, neglected or
them, keeping them in their company, educating abused children and other children similarly
them in proportion to their means', while, on the situated, parental authority shall be entrusted in
other hand, gives them the 'right to correct and summary judicial proceedings to heads of children's
punish them in moderation.' homes, orphanages and similar institutions duly
accredited by the proper government agency. (FC
Tamargo vs. CA (1992): The basis of parental Art. 217)
authority for the torts of a minor child is the
GUARDIANS
relationship existing between the parents and the
LIABILITY OF GUARDIANS
minor child living with them and over whom, the law
Guardians are liable for damages caused by the
presumes, the parents exercise supervision and
minors or incapacitated persons who are under their
control. To hold that parental authority had been
authority and live in their company. [Art. 2180, par. 3]
retroactively lodged in the adoptive parents so as to
(a) The liability of guardians with respect to their
burden them with the liability for a tortious act that
wards is governed by the same rule as in the
they could not have foreseen and prevented would
liability of parents with respect to their children
be unfair.
below 21 years and who live with them
(b) “Incompetent” includes
Parental liability is, in other words, anchored upon
(1) those suffering the penalty of civil interdiction,
parental authority coupled with presumed parental
or
dereliction in the discharge of the duties
(2) prodigals,
accompanying such authority. The parental
(3) deaf and dumb who are unable to read and
dereliction is, of course, only presumed and the
write
presumption can be overturned under Article 2180 of
(4) unsound mind, even though they have lucid
the Civil Code by proof that the parents had
intervals
exercised all the diligence of a good father of a
(5) being of sound mind, but by reason of age,
family to prevent the damage
disease, weak mind, and other similar causes,
cannot take care of themselves or manage
(NOTE: Art 2180, par 2 of the Civil Code which holds
their property [Rule 92, ROC]
the father liable for damages has been modified by
the Family Code and PD 603. Art. 211 of the FC
Liability of minor or insane tortfeasor without a parent
declares joint parental authority of the mother and
or guardian
father over common children. The parent(s)
He shall be answerable with his own property in an
exercising parental authority are liable for the torts
action against him where a guardian ad litem shall
of their children.
be appointed. [Art. 2182]
Libi vs. IAC (1992): The parent's liability under 2180 SCHOOL, TEACHERS AND ADMINISTRATORS
should be primary and not subsidiary. If it were Teachers or heads of establishments of arts and
subsidiary, the parents cannot invoke due diligence trades shall be liable for damages caused by their
as a defense. Such interpretation reconciles 2180 pupils and students or apprentices, so long as they
with 2194 which calls for solidary liability of joint remain in their custody. [Art. 2180, par. 7]
tortfeasors.
Requisite for
REQUISITES FOR LIABILITY TO ATTACH Who are liable For whose Acts Liability to
(1) The child is below 21 years old Attach
(2) The child is under the parental authority of the Teacher-in- Pupils and Pupils and
parents charge (the students students
The child is living in the company of the parents one remain in
designated to teacher’s
exercise custody
supervision regardless of
over students) the age
Head of Apprentices Custody
establishment regardless of
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of employees, whether or not the employer is applicant for employment as to his qualifications, his
engaged in a business or industry, are covered so experience and record of service.
long as they were acting within the scope of their
assigned task, even though committed neither in the Metro Manila Transit vs. CA (1998): The responsibility
service of the branches nor on the occasion of their of employers for the negligence of their employees in
functions. For, admittedly, employees oftentimes the performance of their duties is primary, that is, the
wear different hats. They perform functions which injured party may recover from the employers
are beyond their office, title or designation but which, directly, regardless of the solvency of their
nevertheless, are still within the call of duty. employees. The rationale for the rule on vicarious
liability of the employer for the torts of the
Under the fifth paragraph of Article 2180, whether or employees is that this is a required cost of doing
not engaged in any business or industry, an business. They are placed upon the employer
employer is liable for the torts committed by because, having engaged in the enterprise, which
employees within the scope of his assigned tasks. will on the basis of all past experience involve harm
But it is necessary to establish the employer- to others through the tort of employees, and sought
employee relationship; once this is done, the plaintiff to profit by it, it is just that he, rather than the
must show, to hold the employer liable, that the innocent plaintiff, should bear them; and because he
employee was acting within the scope of his is better able to absorb them, through prices, rates
assigned task when the tort complained of was or liability or insurance, and so to shift them to
committed. It is only then that the employer may find society, to the community at large.
it necessary to interpose the defense of due diligence
in the selection and supervision of the employee. Nature of Employer’s Liability
th th The employer is PRIMARILY and SOLIDARILY liable
Distinction between 4 and 5 paragraph of 2180 for the tortious act of the employee. The employer
4th paragraph 5th paragraph may recover from the employee, the amount it will
have to pay the offended party’s claim.
Liable persons Owners and Employers in
managers of an general, Such recovery, however, is NOT for the entire
establishment or an whether or not amount. To allow such would be as if to say that the
enterprise engaged in employer was not negligent.
business or
industry
Philtranco vs. CA (1997): The liability of the registered
Covered acts Negligent acts of Negligent acts owner and driver is solidary, primary and direct.
employees of employees
committed either in acting within Criminal Negligence
the service of the the scope of Fernando v. Franco: The vicarious liability of the
branches or on the their assigned employer for criminal negligence of his employee is
occasion of their task governed by RPC 103. Conviction of the employee
functions conclusively binds the employer. Defense of due
diligence in the selection and supervision of the
DEFENSE OF DILIGENCE IN SELECTION AND SUPERVISION employee is NOT available. The employer cannot
appeal the conviction.
Metro Manila Transit vs. CA (1993): Due diligence in
the SUPERVISION of employees includes the Soliman v. Tuazon (1992): Liability for illegal or
formulation of suitable rules and regulations for the harmful acts committed by security guards attaches
guidance of employees and the issuance of proper to the employer agency, not to the clients or
instructions intended for the protection of the public customers of such agency.
and persons with whom the employer has relations
through his or her employees and the imposition of Registered Owner Rule
necessary disciplinary measures upon employees in (1) The registered owner of the vehicle is primarily
case of breach or as may be warranted to ensure responsible to the public for whatever damage or
performance of acts as indispensable to the business injury the vehicle may have caused, even if he had
of and beneficial to their employee. already sold the same to someone else. The
policy is the easy identification of the owner who
Due diligence in the SELECTION of employees can be held responsible so as not to
require that the employer carefully examined the
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inconvenience or prejudice the third party injured. private corporation or individual. (Mendoza vs. De
(Cadiente v. Macas, 2008) Leon, 1916)
(2) This rule applies even if the vehicle is leased to The State agencies or subdivisions, in the pursuance
third persons. of proprietary functions, are akin to any other private
corporation. They may be sued for:
Remedy of the registered owner (1) Torts committed by them (Art. 2176) or
His liability is subject to his right of recourse against (2) Torts committed by their employees (art 2180).
the transferee or buyer.
As long as it is performing proprietary functions, it
THE STATE can be held liable for the acts of its employees, both
The State may not be sued without its consent. (Sec regular and special.
3, Art XVI, 1987 Constitution)
Notes:
The State is responsible in like manner when it acts (a) As a governmental entity: Liable only for acts of
through a special agent; but not when the damage its special agents
has been caused by the official to whom the task (b) As a corporate entity: May be held liable just as
done properly pertains, in which case what is any other employer for the acts of its employees
provided in Article 2176 shall be applicable. (Art (c) Special Agent: One duly empowered by a definite
2180, par. 6) order or commission to perform some act or one
charged with some definite purpose which give
Merritt vs. Government of the Philippine Islands (1960): rise to the claim; if he is a government employee
A special agent is one who receives a definite and or official, he must be acting under a definite and
fixed order or commission, foreign to the exercise of fixed order or commission, foreign to the exercise
the duties of his office if he is a special official. of the duties of his office
This concept does not apply to any executive agent JOINT TORTFEASORS
who is an employee of the active administration and The responsibility of two or more persons who are
who on his own responsibility performs the functions liable for quasi-delict is solidary. (Art. 2194)
which are inherent in and naturally pertain to his
DEFINITION OF “JOINT TORTFEASORS”
office.
Filipinas Broadcasting Network vs. AMEC-BCCM
The responsibility of the state is limited to that which (2005): They are all persons who command,
it contracts through a special agent, duly instigate, promote, encourage, advise, countenance,
empowered by a definite order or commission to cooperate in, aid or abet in the commission of a tort,
perform some act or charged with some definite or who approve of it after it is done, if done for their
purpose which gives rise to the claim. benefit.
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Acts of Omission and its Quezon City vs. Dacara (2005): Proximate cause is
Modalities determined from the facts of each case, upon a
combined consideration of logic, common sense,
Human conduct can be described alternatively as policy or precedent.
acts or omission. In relation to the existence of a
legal duty, conduct may be described in terms of DIFFERENTIATED FROM:
action or inaction, or “misfeasance” or REMOTE CAUSE
“nonfeasance.” Manila Electric v. Remonquillo: A prior and remote
cause cannot be made the basis of an action if such
Manresa; “liability for personal acts or omission is remote cause did nothing more than furnish the
founded on that indisputable principle of justice condition or give rise to the occasion by which the
recognized by all legislators that when a person by injury was made possible, if there intervened
his act or omission causes damage or prejudice to between such prior or remote cause and the injury a
another, a juridical relation is created by virtue of distinct, successive, unrelated, and efficient cause of
which the injured person acquires a right to be the injury, even though such injury would not have
indemnified and the person causing the damage is happened but for such condition or occasion.
charged with the corresponding duty of repairing the Concurrent Cause – Several causes producing the
damage. The reason for this is found in the obvious injury, and each is an efficient cause without which
truth that man should subordinate his acts to the the injury would not have happened. The injury is
precepts of prudence and if he fails to observe them attributed to any or all the causes, and recovery may
and cause damage to another, he must repair the be had against any or all of those responsible.
damage.”
Far Eastern Shipping v. CA: Where the concurrent or
successive negligent acts or omissions of two or
more persons, although acting independently, are in
Proximate Cause combination the direct and proximate cause of a
single injury to a third person, it is impossible to
CONCEPT OF PROXIMATE CAUSE determine in what proportion each contributed to
In order that civil liability for negligence may arise, the injury and either of them is responsible for the
there must be a direct causal connection between whole injury. Where their concurring negligence
the damage suffered by the plaintiff and the act or resulted in injury or damage to a third party, they
omission of the defendant. In other words, the act or become joint tortfeasors and are solidarily liable for
omission of the defendant must be the proximate the resulting damage.
cause of the loss or damage of the plaintiff.
INTERVENING CAUSE
DEFINITION
Phoenix Construction v. IAC: If the intervening cause
Bataclan v. Medina:
is one which in ordinary human experience is
PROXIMATE CAUSE: that cause, which, in natural and
reasonably to be anticipated, or one which the
continuous sequence, unbroken by any efficient
defendant has reason to anticipate under the
intervening cause, produces the injury, and without
particular circumstances. The defendant may be
which the result would not have occurred.
negligent, among other reasons, because of failure
to guard against it.
PROXIMATE LEGAL CAUSE: that acting first and
producing the injury, either immediately or by setting
There is an intervening cause combining with the
other events in motion, all constituting a natural and
defendant’s conduct to produce the result, and the
continuous chain of events, each having a close
defendant’s negligence consists in failure to protect
causal connection with its immediate predecessor,
the plaintiff against that very risk.
the final event in the chain immediately effecting the
injury as a natural and probable result of the cause
Foreseeable intervening forces are within the scope
which first acted, under such circumstances that the
of the original risk, and hence of the defendant’s
person responsible for the first event should, as an
negligence.
ordinary prudent and intelligent person, have
reasonable ground to expect at the moment of his
act or default that an injury to some person might
probably result therefrom
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Amonoy vs. Gutierrez (2001): The exercise of a right Art. 33. In cases of defamation, fraud, and physical
ends when the right disappears, and it disappears injuries, a civil action for damages, entirely separate
when it is abused, especially to the prejudice of and distinct from the criminal action, may be
others. The mask of a right without the spirit of brought by the injured party. Such civil action shall
justice which gives it life, is repugnant to the modern proceed independently of the criminal prosecution,
concept of social law. It cannot be said that a person and shall require only a preponderance of evidence.
exercises a right when he unnecessarily prejudices
another xxx. Over and above the specific precepts of
positive law are the supreme norms of justice; and he
who violates them violates the law. For this reason it
is not permissible to abuse our rights to prejudice Intentional Torts
others.
CONCEPT
Under Article 2176, a person is also held liable for
intentional and malicious acts. The liability is
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(1) Prying into the privacy of another’s residence; In intentional infliction of mental distress, the
(2) Meddling with or disturbing the private life or gravamen of the tort is not the injury to plaintiff's
family relations of another; reputation, but the harm to plaintiff's mental and
(3) Intriguing to cause another to be alienated from emotional state. In libel, the gist of the action is the
his friends; injury to plaintiff's reputation. Reputation is the
(4) Vexing or humiliating another on account of his community's opinion of what a person is. In
religious beliefs, lowly station in life, place of intentional infliction of mental distress, the opinion
birth, physical defect, or other personal of the community is immaterial to the existence of
condition. the action although the court can consider it in
awarding damages. What is material is the
The principal rights protected under this provision disturbance on the mental or emotional state of the
are the following: plaintiff who is entitled to peace of mind.
(1) The right to personal dignity
(2) The right to personal security VIOLATION OF PRIVACY
(3) The right to family relations It is the right to be let alone, or to be free from
(4) The right to social intercourse unwarranted publicity, or to live without
(5) The right to privacy unwarranted interference by the public in matters in
(6) The right to peace of mind which the public is not necessarily concerned.
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violation of their own rights regarding the character DISTURBANCE OF PEACE OF MIND
and memory of the deceased. The disturbance of the mental and emotional
tranquility of the plaintiff by the defendant is a legal
Invasion of Privacy injury in itself and, therefore, a sufficient cause of
Types: action for damages, injunction, and other relief.
(1) Publication of embarrassing private facts – The
interest here is the right to be free from A person, however, cannot be held liable for
unwarranted publicity, wrongful publicizing of damages for the mental or emotional disturbance of
private affairs and activities, as these are outside the plaintiff which was due to the latter’s
the ambit of legitimate public concern. susceptibility to such disturbance, where the
defendant had no knowledge of such peculiar
Ayer v. Capulong (1988): Public figures enjoy a limited susceptibility. The tendency of the law is to secure an
right to privacy as compared to ordinary individuals. interest in mental comfort only to the extent of the
ordinary sensibilities of men.
(2) Intrusion upon plaintiff’s private affairs – This is
not limited to situations where the wrongdoer MALICIOUS PROSECUTION
physically trespasses into one’s property. Art. 2219. Moral damages may be recovered in the
(a) Generally, there is no invasion of privacy following and analogous cases:
when journalists report something that xxx
occurs in the public realm, except when the (8) Malicious prosecution
acts of the journalist are to an extent that it
constitutes harassment.
(b) RA 4200: it is illegal for any person not Art. 21. Any person who wilfully causes loss or injury
authorized by both parties to any private to another in manner that is contrary to morals, good
communication to secretly record such customs or public policy shall compensate the latter
communication. for the damage.
(c) Limitations to Right to Information v. Right
to Privacy: Malicious prosecution is the institution of any action
(i) Must be of public interest or proceeding either civil or criminal against another,
(ii) Must not be excluded by law maliciously and without probable cause.
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that his accusation of the person subject to such FRAUD OR MISREPRESENTATION (FORMERLY DECEIT)
malicious prosecution, was false and groundless. Salta vs. De Veyra (1982): Independent civil actions
are permitted to be filed separately regardless of the
xxx Proof and motive that the prosecution or result of the criminal action.
institution of the action was prompted by a sinister
design to vex and humiliate a person and to cast Samson vs. Daway (2004): Unfair competition under
dishonor and disgrace must be clearly and the Intellectual Property Code and fraud under Art.
preponderantly established to entitle the victims to 33 are independent actions. Art. 33 does not operate
damages and other rights granted by law; otherwise, as a prejudicial question to justify the suspension of
there would always be a civil action for damages the criminal cases at bar.
after every prosecution's failure to prove its cause
resulting in the consequent, acquittal of the accused SEDUCTION
therein. Sangco: Seduction is sexual intercourse with an
unmarried woman of chaste character whose
DEFAMATION, FRAUD AND PHYSICAL INJURIES consent was obtained through abuse of confidence
Art. 33. In case of defamation, fraud, and physical or through deceit.
injuries, a civil action for damages, entirely separate
and distinct from the criminal action, may be Seduction under the RPC (criminal seduction) is
brought by the injured party. Such civil action shall different from seduction under the NCC (civil
proceed independently of the criminal prosecution, seduction, Art. 21)
and shall require only a preponderance of evidence. (a) In criminal seduction, either qualified or simple,
the offended woman must be less than 18 years
of age.
DEFAMATION
(b) In civil seduction, the offended woman may be
Cojuangco vs. CA (1991): Separate civil action may be over 18 years of age.
consolidated with the criminal action.
Tanjanco vs. CA (1966): The essential feature is
MVRS vs. Islamic Da'wah (2003): Defamation is that seduction, that in law is more than mere sexual
which tends to injure reputation or diminish esteem, intercourse, or a breach of a promise of marriage; it
respect, good will, or confidence of the plaintiff, or connotes essentially the idea of deceit, enticement,
excite derogatory feelings about him. It must be superior power or abuse of confidence on the part of
personal. (What is definitive is not the level of hurt, the seducer to which the woman has yielded.
but the effect of the statement on the reputation or
standing of the person.) To constitute seduction there must in all cases be
some sufficient promise or inducement and the
Arafiles vs. Philippine Journalists (2004): In actions for woman must yield because of the promise or other
damages for libel, it is axiomatic that the published inducement. If she consents merely from carnal lust
work alleged to contain libelous material must be and the intercourse is from mutual desire, there is no
examined and viewed as a whole. seduction.
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backwages, but on the manner of his dismissal and and not by reason of the wrongful conduct of the
the consequent effects of such dismissal. defendant, there is no liability on the defendant.
However, if the defendant interferes and by his
The case at bar is intrinsically concerned with a civil wrongful conduct prevents a reconciliation
(not a labor) dispute; it has to do with an alleged between the spouses, or destroys the possibility
violation of Quisaba's rights as a member of society, thereof, the defendant is liable for alienation of
and does not involve an existing employee-employer affection.
relation within the meaning of section 2(1) of
Presidential Decree No. 21. The complaint is thus (2) Loss of affection or consortium
properly and exclusively cognizable by the regular
courts of justice, not by the National Labor Relations Note: Complete absence of affection between
Commission. the spouses is not a defense.
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from his or her spouse. This rule has more frequently who seeks to collect indemnity for damages resulting
been applied in the case of advice given to a married from deprivation of her domestic services must prove
daughter, but it is equally applicable in the case of such services.
advice given to a son.
Furthermore, inasmuch as a wife's domestic
LOSS OF CONSORTIUM assistance and conjugal companionship are purely
Lilius vs. Manila Railroad Company (1934): The personal and voluntary acts which neither of the
plaintiff Aleko E. Lilius also seeks to recover the sum spouses may be compelled to render, it is necessary
of P2,500 for the loss of what is called Anglo-Saxon for the party claiming indemnity for the loss of such
common law "consortium" of his wife, that is, "her services to prove that the person obliged to render
services, society and conjugal companionship", as a them had done so before he was injured and that he
result of personal injuries which she had received would be willing to continue rendering them had he
from the accident now under consideration. not been prevented from so doing.
In the case of Goitia vs. Campos Rueda, this court,
interpreting the provisions of the Civil Marriage Law CRIMINAL CONVERSATION (ADULTERY)
of 1870, in force in these Islands with reference to the Interference with the marital relations by committing
mutual rights and obligations of the spouses, adultery with one of the spouses. This is obvious
contained in articles 44-48 thereof, said as follows: enough in the case of rape but also applies where
the adulterous spouse consented to or initiated the
The above quoted provisions of the Law of Civil intercourse. (Prosser and Keeton, p. 917)
Marriage and the Civil Code fix the duties and
obligations of the spouses. The spouses must be SOCIAL RELATIONS
faithful to, assist, and support each other. The
husband must live with and protect his wife. The MEDDLING WITH OR DISTURBING FAMILY RELATIONS
wife must obey and live with her husband and Art. 26. Every person shall respect the dignity,
follow him when he changes his domicile or personality, privacy and peace of mind of his
residence, except when he removes to a foreign neighbors and other persons. The following and
country. . . . similar acts, though they may not constitute a
criminal offense, shall produce a cause of action for
Therefore, under the law and the doctrine of this damages, prevention and other relief;
court, one of the husband's rights is to count on his xxx
wife's assistance. This assistance comprises the 2) Meddling with or disturbing the private life or
management of the home and the performance of family relations of another;
household duties, including the care and education
of the children and attention to the husband upon Developed as an offshoot of the action for enticing
whom primarily devolves the duty of supporting the away a servant and depriving the master of the
family of which he is the head. When the wife's proprietary interest in [the servant’s] services until
mission was circumscribed to the home, it was not there has been a gradual shift of emphasis away
difficult to assume, by virtue of the marriage alone, from “services” and toward a recognition of more
that she performed all the said tasks and her intangible elements in the domestic relations, such
physical incapacity always redounded to the as companionship and affection. (Prosser and
husband's prejudice inasmuch as it deprived him of Keeton, p. 916)
her assistance. However, nowadays when women, in
their desire to be more useful to society and to the INTRIGUING TO CAUSE ANOTHER TO BE ALIENATED FROM
nation, are demanding greater civil rights and are HIS FRIENDS
aspiring to become man's equal in all the activities of A person who committed affirmative acts intended to
life, commercial and industrial, professional and alienate the existing friendship of one with his
political, many of them spending their time outside friends is liable for damages. A man is a social being
the home, engaged in their businesses, industry, and for being so, he needs friends to socialize with
profession and within a short time, in politics, and and to depend upon in case of need. To alienate him
entrusting the care of their home to a housekeeper, wrongfully or with malice from his friends is to cause
and their children, if not to a nursemaid, to public or him suffering for which he is entitled to damages.
private institutions which take charge of young
children while their mothers are at work, marriage
has ceased to create the presumption that a woman
complies with the duties to her husband and
children, which the law imposes upon her, and he
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Prohibited competition
Gilchrist vs. Cuddy (1915): Everyone has a right to In order to qualify as “unfair,” it must have 2
enjoy the fruits of his enterprise. He has no right to characteristics:
be protected from competition, but he has the right (1) It must involve an injury to a trade or rival
to be free from malicious and wanton interference. If (2) It must involve acts which are characterized as
the injury is a result of competition, it is a case of “contrary to good conscience,” or “shocking to
damnum absque injuria, unless superior right by judicial sensibilities,” or otherwise unlawful
contract is interfered with.
Note:
Injunction is the proper remedy to prevent wrongful Jarencio: Unfair competition dealt with in Art. 28 is
interference with contracts by strangers, where other different from the unfair competition under Sec. 29
legal remedies are insufficient and the resulting of RA 166. Unfair competition under Sec. 29 of Rep.
injury is irreparable. Act 166 consists in giving the same general
appearance to the goods manufactured or dealt in or
So Ping Bun vs. CA (1999): Bad faith/Malice is the services rendered by one person as the goods or
required to make the defendant liable for DAMAGES services of another who has already acquired a
in cases of tortuous interference. public goodwill for such goods or services. Unfair
competition under Art. 28 of the Civil Code refers to
Elements of Interference unfair competition in agricultural, commercial or
(1) Existence of a valid contract; industrial enterprises or in labor through the use of
(2) Knowledge of the third person of the existence force, intimidation, deceit, machination or any other
of such contract; and unjust, oppressive or high- handed method. Unfair
(3) Interference without legal justification or excuse. competition under the Civil Code covers a broader
area than Rep. Act 166.
Lagon vs. CA (2005): If there is no bad faith, there is
no tortious interference; Actual knowledge of the POLITICAL RELATIONS
contract is not required so long as there are facts
leading one to investigate. VIOLATION OF RIGHT TO SUFFRAGE (NCC, ART. 32)
Art 32. Any public officer or employee, or any private
Proper business interest provides a legal justification individual, who directly or indirectly obstructs,
to negate the presence of the third element. defeats, violates or in any manner impedes or
impairs any of the following rights and liberties of
UNFAIR COMPETITION another person shall be liable to the latter for
damages:
Art. 28. Unfair competition in agricultural,
(1) Freedom of religion
commercial or industrial enterprises or in labor
(2) Freedom of speech
through the use of force, intimidation, deceit,
(3) Freedom to write for the press or to maintain a
machination or any other unjust, oppressive or
periodical publication
highhanded method shall give rise to a right of
(4) Freedom from arbitrary or illegal detention
action by the person who thereby suffers damage.
(5) Freedom of suffrage
(6) The right against deprivation of property without
Free competition in agricultural, commercial or due process of law
industrial enterprises and in labor is essential in a (7) The right to just compensation when property is
democracy and should be encouraged. Monopolies, taken for public use
generally speaking, are prejudicial to public interest. (8) The right to equal protection of the laws
However, the right of free competition is not (9) The right to be secure in one’s person, house,
unlimited. papers and effects against unreasonable
searches and seizures
(10) The liberty of abode and of changing the same
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(11) The right to privacy of communication and required. If the violation of the civil or political rights
correspondence constitutes a crime and a criminal action is instituted
(12) The right to become a member of associations the civil action is also deemed instituted with the
and societies for purposes not contrary to law criminal action unless the same is reserved.
(13) The right to take part in a peaceable assembly
and petition the government for redress of Cojuangco vs. CA (1999): The purpose of article 32 is
grievances to remind us that basic rights are immutable. Thus,
(14) The right to be free from involuntary servitude in absence of bad faith or malice is not a defense.
any form
(15) The right of the accused against excessive bail Vinzons-Chato vs. Fortune (2007): A public officer
(16) The right of the accused to be heard by himself may be sued under Art. 32 even if his acts were not
and counsel, to be informed of the nature and so tainted with malice, as long as there is a violation
the cause of the accusation against him, to have of a constitutional right. Its precise object is to put an
a speedy and public trial, to meet the witnesses end to official abuse, done on the plea of good faith.
face to face, to have compulsory process to
secure the attendance of witnesses on is behalf;
(17) Freedom form being compelled to be a witness
against one’s self, or from being forced to
confess his guilt, or from being induced by a
Negligence
promise of immunity or reward to make such
confession, except when the person confessing Art. 1173. The fault or negligence of the obligor
becomes a State witness. consists in the omission of that diligence which is
(18) Freedom from excessive fines, or cruel and required by the nature of the obligation and
unusual punishment, unless the same is corresponds with the circumstances of the persons,
imposed or inflicted in accordance with a statute of the time and of the place. When negligence shows
which has not been judicially declared bad faith, the provisions of Articles 1171 and 2201,
unconstitutional; paragraph 2, shall apply.
(19) Freedom of access to the courts
If the law or contract does not state the diligence
In any of the cases referred to in this article, whether which is to be observed in the performance, that
or not the defendant’s act or omission constitutes a which is expected of a good father of a family shall
criminal offense, the aggrieved party has a right to be required.
commence an entirely separate and distinct civil
action for damages, and for other relief. Such civil ELEMENTS
action shall proceed independently of any criminal (1) Legal duty
prosecution (if the latter be instituted) and may be (2) Breach
proved by a preponderance of evidence. (3) Causation
(4) Damages
The indemnity shall include moral damages.
Exemplary damages may also be adjudicated. Layugan vs. IAC (1988): Negligence is the omission to
do something which a reasonable man, guided by
The responsibility herein set forth is not demandable those considerations which ordinarily regulate the
from a judge unless his act or omission constitutes a conduct of human affairs, would do, or the doing of
violation of the Penal code or any other penal something which a prudent and reasonable man
statute. would not do.
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state of the profession at the time of treatment or selection or supervision of the plaintiff’s fellow-
the present state of medical science. worker.
IN CASE OF INSANE PERSONS Amedo vs. Rio (1954): By jumping into the sea, the
Art. 2180. …Guardians are liable for damages caused employee failed to exercise even slight care and
by the minors or incapacitated persons who are diligence and displayed a reckless disregard of the
under their authority and live in their company… safety of his person. His death was caused by his
notorious negligence. Notorious negligence has
Art. 2182. If the minor or insane person causing been held to be tantamount to gross negligence
damage has no parents or guardian, the minor or which is want of even slight care and diligence.
insane person shall be answerable with his own
property in an action against him where a guardian EVIDENCE
ad litem shall be appointed. QUANTUM OF PROOF IN QUASI-DELICT VS. QUANTUM OF
PROOF IN BREACH OF CONTRACT
US vs. Baggay (1911): A lunatic or insane person who, Calalas vs. CA: In quasi-delict, the negligence or fault
in spite of his irresponsibility on account of the should be clearly established because it is the basis
deplorable condition of his deranged mind, is still of action, whereas in breach of contract, the action
reasonably and justly liable with his property for the can be prosecuted merely by proving the existence of
consequences of his acts. a contract and the fact that the obligor, in this case a
common carrier, failed to transport his passenger
safely to his destination.
EMERGENCY RULE OR SUDDEN PERIL DOCTRINE
Valenzuela vs. CA (1996): An individual, who suddenly PRESUMPTION OF NEGLIGENCE
finds himself in a situation of danger and is required
to act without much time to consider the best means Art. 2184. In motor vehicle mishaps, the owner is
that may be adopted to avoid the impending danger, solidarily liable with his driver, if the former, who was
is not guilty of negligence if he fails to undertake in the vehicle, could have, by the use of due
what subsequently and upon reflection may appear diligence, prevented the misfortune. It is disputable
to be a better solution, unless the emergency was presumed that the driver was negligent, if he had
brought by his own negligence. been found guilty of reckless driving or violating
traffic regulations at least twice within the next
preceding two months.
UNREASONABLE RISK OR HARM
Art 1711. Owners of enterprises and other employers
are obliged to pay compensation for the death of or Art. 2185. Unless there is proof to the contrary, it is
injuries to their laborers, workmen, mechanics or presumed that a person driving a motor vehicle has
other employees even though the event may have been negligent if at the time of the mishap, he was
been purely accidental or entirely due to fortuitous violating any traffic regulation.
cause, if the death or personal injury arose out of and
in the course of employment. The employer is also Art. 2188. There is prima facie presumption of
liable for compensation if the employee contracts negligence if the death or injury results from his
any illness or disease caused by such employment or possession of dangerous weapons or substances,
as a result of the nature of the employment. If the such as firearms and poison, except when the use or
mishap was due to the employee’s own notorious possession thereof is indispensable in his occupation
negligence, or voluntary act, or drunkenness, the or business.
employer shall not be liable for compensation.
When the employee’s lack of due care contributed to Art. 1735. In all cases other than those mentioned in
his death or injury, the compensation shall be Nos. 1, 2, 3, 4, and 5 of the preceding article
equitably reduced (calamity, act of public enemy in war, act of owner of
the goods, character of the goods, order of
Art. 1712. If the death or injury is due to the competent public authority), if the goods are lost
negligence of a fellow-worker, the latter and the destroyed or deteriorated, common carriers are
employer shall be solidarily liable for compensation. presumed to have been at fault or to have acted
If a fellow-worker’s intentional or malicious act is the negligently, unless they prove that they observed
only cause of the death or injury, the employer shall extraordinary diligence as required under Art. 1733.
not be answerable, unless it should be shown that
the latter did not exercise due diligence in the
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PRESUMED NEGLIGENCE OR NEGLIGENCE PER SE accident or has the best opportunity of ascertaining
Teague vs. Fernandez (1973): Violation of a statute or it and that the plaintiff has no such knowledge, and
ordinance constitutes negligence as a matter of law therefore is compelled to allege negligence in
or negligence per se because non-observance of general terms and to rely upon the proof of the
what the law provides as a suitable precaution is happening of the accident in order to establish
failure to observe that care which an ordinarily negligence.
prudent man would observe.
Note: For the res ipsa loquitur doctrine to apply, it
When the standard of care is fixed by law, failure must appear that the injured party had no
conform to such standard is negligence, negligence knowledge as to the cause of the accident, or that
per se or negligence in and of itself, in the absence of the party to be charged with negligence has superior
a legal excuse. knowledge or opportunity for explanation of the
accident.
RES IPSA LOQUITUR
The doctrine of res ipsa loquitur (“the thing speaks DEFENSES
for itself”) is a rule of evidence (not of substantive DUE DILIGENCE
law) peculiar to the law of negligence. Art. 2180. The obligation imposed by Article 2176 is
demandable not only for one’s own acts or
3 conditions for applicability: omissions, but also for those of persons for whom
F.F. Cruz vs. CA (1988): Res ipsa loquitur is applicable one is responsible.
when: xxx
(1) The thing causing the injury is under the control Par. 8. The responsibility treated of in this article
of the defendant or his servant; shall cease when the persons herein mentioned
(2) In the ordinary cause of things, the accident does prove that they observed all the diligence of a good
not happen if those who have control used proper father of a family to prevent damage.
care;
(3) In the absence of explanation from the
defendant, a presumption of negligence results. Ramos vs. PEPSI (1967): The presumption of
negligence on the part of the master or employer,
either in the selection of servant/employee or in the
Layugan vs. IAC 1988): Where the thing which causes supervision, when an injury is caused by the
injury is shown to be under the management of the negligence of a servant/employee may be rebutted if
defendant, and the accident is such as in the the employer shows to the satisfaction of the court
ordinary course of things does not happen if those that in the selection and supervision, he has
who have the management use proper care, it exercised the care and diligence of a good father of a
affords reasonable evidence, in the absence of an family
explanation by the defendant, that the accident
arose from want of care.
Metro Manila vs. CA (1993): The defense of due
diligence is plausible when defendant has presented
Ramos vs. CA (1999): The injury itself, taken together enough evidence to overcome the presumption of
with the circumstances, raises the presumption of negligence. It is not enough that it is alleged.
negligence that the defendant must meet with an
explanation.
ACTS OF PUBLIC OFFICERS
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responsible for those events which, could not injury, the damage is regarded as damnum absque
foreseen, or which, though foreseen, were inevitable. injuria.
In order that the law will give redress for an act Requisites
causing damage, that act must be not only hurtful, (1) That the plaintiff had actual knowledge of the
but wrongful. There must be damnum et injuria. If, danger;
as may happen in many cases, a person sustains (2) That he understood and appreciated the risk from
actual damage, that is, harm or loss to his person or the danger
property, without sustaining any legal injury, that is, (3) That he voluntarily exposed himself to such risk
an act or omission which the law does not deem an
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Consolidated Bank vs. CA (2003): This is a case of Art. 1171. Responsibility arising from fraud is
culpa contractual where neither contributory demandable in all obligations. Any waiver of an
negligence nor last clear chance will exonerate action for future fraud is void.
defendant from liability. (NOTE: This means that
Last Clear Chance is not a defense in culpa DOUBLE RECOVERY – NCC ART. 2177
contractual.) Art. 2177. Responsibility for fault or negligence under
the preceding article is entirely separate and distinct
PRESCRIPTION – NCC, ART. 1144, 1146, AND 1150 from the civil liability arising from negligence under
Art. 1144. The following actions must be brought the Penal Code. But the plaintiff cannot recover
within ten years from the time the right of action damages twice for the same act or omission of the
accrues: defendant.
(1) Upon a written contract;
(2) Upon an obligation created by law; Art. 100 (RPC). Civil liability of a person guilty of
(3) Upon a judgment. felony. - Every person criminally liable for a felony is
also civilly liable.
Art. 1146. The following actions must be instituted
within four years: Art. 2177 distinguishes 2 kinds of negligence:
(1) Upon an injury to the rights of the plaintiff; (1) Civil and
(2) Upon a quasi-delict; (2) Criminal.
The same negligence causing damage may produce
However, when the action arises from or out of any liability arising from crime, if the act or omission is
act, activity, or conduct of any public officer involving punished by the RPC, or may create an action for
the exercise of powers or authority arising from quasi-delict under the NCC.
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The only limitation is that the injured party cannot (a) Is it necessary for X to reserve his right to institute
recover twice for the same act or omission. a civil action for damages against both taxicab
owners before he can file a civil action for damages
EFFECT OF ACQUITTAL OF THE ACCUSED ON HIS CIVIL against them? Why?
LIABILITY
Art. 29. When the accused in a criminal prosecution (b) May both taxicab owners raise the defense of due
is acquitted on the ground that his guilt has not been diligence in the selection and supervision of their
proved beyond reasonable doubt, a civil action for drivers to be absolved from liability for damages to
damages for the same act or omission may be X? Reason.
instituted. Such action requires only a
preponderance of evidence. Upon motion of the Suggested Answer:
defendant, the court may require the plaintiff to file a It depends. If the separate civil action is to recover
bond to answer for damages in case the complaint damages arising from the criminal act, reservation is
should be found to be malicious. necessary. If the civil action against the taxicab
owners is based on culpa contractual or on quasi-
The acquittal of the accused in the criminal case will delict, there is no need for reservation.
not necessarily exonerate him from civil liability.
It depends. If the civil action is based on quasi-delict,
The judgment of acquittal does not necessarily the taxicab owners may raise the defense of
extinguish the civil liability of the accused EXCEPT: diligence of a good father of a family in the selection
(1) When it declares that the facts from which the and supervision of the driver; if the action against
civil liability might arise did not exist; them is based on culpa contractual or civil liability
(2) When it declares that the accused is not the arising from a crime, they cannot raise the defense.
author of the crime;
(3) When the judgment expressly declares that the Alternative Answer:
liability is only civil in nature; No such reservation is necessary. Under Section 1
(4) Where the civil liability is not derived or based on Rule 111 of the 2000 Rules on Criminal Procedure,
the criminal act of which the accused was what is “deemed instituted” with the criminal action
acquitted; is only the action to recover civil liability arising from
(5) Where the acquittal is based on reasonable the crime or ex delicto. All the other civil actions
doubt; under Articles 32, 33, 34, 2176 of the New Civil Code
(6) Where the civil action has prescribed. are no longer “deemed instituted,” and may be filed
separately and prosecuted independently even
NO RESERVATION IS REQUIRED IN THE CRIMINAL CASE FOR
without any reservation in the criminal action
THE FILING OF CIVIL ACTION ARISING FROM QUASI-DELICT
(Section 3, Rule 111, 2000 Rules on Criminal
Procedure). The failure to make a reservation of the
Rule 111, Sec. 3, ROC. When civil action may criminal action is not a waiver of the right to file a
proceeded independently. — In the cases provided separate and independent civil action based on
for in Articles 32, 33, 34 and 2176 of the Civil Code of these articles of the New Civil Code (Casupanan vs.
the Philippines, the independent civil action may be Laroya, G.R. No. 145391, August 26, 2002)
brought by the offended party. It shall proceed
independently of the criminal action and shall
require only a preponderance of evidence. In no case,
however, may the offended party recover damages
twice for the same act or omission charged in the Special Liability in Particular
criminal action.
Cases
In some cases tort law imposes liability on
defendants who are neither negligent nor guilty of
intentional wrongdoing. Known as Strict Liability, or
liability without fault, this branch of torts seeks to
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regulate those activities that are useful and (n) "Consumer" means a natural person who is a
necessary but that create abnormally dangerous purchaser, lessee, recipient or prospective purchaser,
risks to society. lessor or recipient of consumer products, services or
credit.
PRODUCTS LIABILITY
Art. 2187. Manufacturers and processors of (as) "Manufacturer" means any person who
foodstuffs, drinks, toilet articles and similar goods manufactures, assembles or processes consumer
shall be liable for death or injuries caused by any products, except that if the goods are manufactured,
noxious or harmful substances used, although no assembled or processed for another person who
contractual relation exists between them and the attaches his own brand name to the consumer
consumers. products, the latter shall be deemed the
manufacturer. In case of imported products, the
Under the foregoing provision, liability is not made to manufacturer's representatives or, in his absence, the
depend upon fault or negligence of the importer, shall be deemed the manufacturer.
manufacturer or processor. The provision likewise
dispensed with any contractual relation between the Article 92. Exemptions. – If the concerned
manufacturer and the consumer, thereby clearly department finds that for good or sufficient reasons,
implying that liability is imposed by law as a matter full compliance with the labeling requirements
of PUBLIC POLICY. otherwise applicable under this Act is impracticable
or is not necessary for the adequate protection of
Proof of negligence under this provision is not public health and safety, it shall promulgate
necessary; as such, traditional contract and warranty regulations exempting such substances from these
defenses as (1) lack of privity; (2) lack of reliance on a requirements to the extent it deems consistent with
warranty; (3) lack of notice to the defendant of the the objective of adequately safeguarding public
breach of warranty; and (4) disclaimer of implied health and safety, and any hazardous substance
warranties are INAPPLICABLE. which does not bear a label in accordance with such
regulations shall be deemed mislabeled hazardous
REQUISITES OF LIABILITY
substance.
(1) Defendant is a manufacturer or possessor of
foodstuff, drinks, toilet articles and similar Article 93. Grounds for Seizure and Condemnation of
goods; Mislabeled Hazardous Substances. –
(2) He used noxious or harmful substances in the (a) Any mislabeled hazardous substance when
manufacture or processing of the foodstuff, introduced into commerce or while held for sale
drinks or toilet articles consumed or used by the shall be liable to be proceeded against and
plaintiff; condemned upon order of the concerned
(3) Plaintiff’s death or injury was caused by the department in accordance with existing
product so consumed or used; and procedure for seizure and condemnation of
(4) The damages sustained and claimed by the articles in commerce: Provided, That this Article
plaintiff and the amount thereof. shall not apply to a hazardous substance
intended for export to any foreign country if:
BURDEN OF PROOF
(1) it is in a package labeled in accordance with
The burden of proof that the product was in a the specifications of the foreign purchaser;
defective condition at the time it left the hands of the (2) it is labeled in accordance with the laws of
manufacturer and particular seller is upon the the foreign country;
INJURED PLAINTIFF. (3) it is labeled on the outside of the shipping
package to show that it is intended for
WHO MAY RECOVER
export; and
Although the article used the term “consumer”, such (4) it is so exported,
term includes a “user” and “purchaser” of the
injuriously defective food product or toilet article. The (b) any hazardous substance condemned under this
person who may recover NEED NOT BE THE Article shall after entry of order of condemnation
PURCHASER of the foodstuff or toilet article. be disposed of by destruction or sale as the
concerned department may direct, and the
CONSUMER ACT –RA 7394, SECS. 92-107 (CH. 1)
proceeds thereof, if sold, less the legal cost and
charges, shall be paid into the treasury of the
Consumer Act Provisions Philippines; but such hazardous substance shall
Article 4. Definition of Terms. not be sold under any order which is contrary to
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against the other responsible parties, in The consumer may make immediate use of the
accordance with their part or responsibility in the alternatives under the second paragraph of this
cause of the damage effected. Article when by virtue of the extent of the
imperfection, the replacement of the imperfect parts
Article 99. Liability for Defective Services. – The may jeopardize the product quality or characteristics,
service supplier is liable for redress, independently of thus decreasing its value.
fault, for damages caused to consumers by defects
relating to the rendering of the services, as well as If the consumer opts for the alternative under sub-
for insufficient or inadequate information on the paragraph (a) of the second paragraph of this Article,
fruition and hazards thereof. and replacement of the product is not possible, it
may be replaced by another of a different kind, mark
The service is defective when it does not provide the or model: Provided, That any difference in price may
safety the consumer may rightfully expect of it, result thereof shall be supplemented or reimbursed
taking the relevant circumstances into consideration, by the party which caused the damage, without
including but not limited to: prejudice to the provisions of the second, third and
(a) the manner in which it is provided; fourth paragraphs of this Article.
(b) the result of hazards which may reasonably be
expected of it; Article 101. Liability for Product Quantity
(c) the time when it was provided. Imperfection. – Suppliers are jointly liable for
imperfections in the quantity of the product when, in
A service is not considered defective because of the due regard for variations inherent thereto, their net
use or introduction of new techniques. content is less than that indicated on the container,
packaging, labeling or advertisement, the consumer
The supplier of the services shall not be held liable having powers to demand, alternatively, at his own
when it is proven: option:
(a) that there is no defect in the service rendered; a) the proportionate price
(b) that the consumer or third party is solely at b) the supplementing of weight or measure
fault. differential;
c) the replacement of the product by another of
Article 100. Liability for Product and Service the same kind, mark or model, without said
Imperfection. – The suppliers of durable or imperfections;
nondurable consumer products are jointly liable for d) the immediate reimbursement of the amount
imperfections in quality that render the products paid, with monetary updating without prejudice
unfit or inadequate for consumption for which they to losses and damages if any.
are designed or decrease their value, and for those
resulting from inconsistency with the information The provisions of the fifth paragraph of Article 99
provided on the container, packaging, labels or shall apply to this Article.
publicity messages/advertisement, with due regard
to the variations resulting from their nature, the The immediate supplier shall be liable if the
consumer being able to demand replacement to the instrument used for weighing or measuring is not
imperfect parts. gauged in accordance with official standards.
If the imperfection is not corrected within thirty (30) Article 102. Liability for Service Quality Imperfection.
days, the consumer may alternatively demand at his – The service supplier is liable for any quality
option: imperfections that render the services improper for
a) the replacement of the product by another of consumption or decrease their value, and for those
the same kind, in a perfect state of use; resulting from inconsistency with the information
b) the immediate reimbursement of the amount contained in the offer or advertisement, the
paid, with monetary updating, without prejudice consumer being entitled to demand alternatively at
to any losses and damages; his option:
c) a proportionate price reduction. a) the performance of the services, without any
additional cost and when applicable;
The parties may agree to reduce or increase the term b) the immediate reimbursement of the amount
specified in the immediately preceding paragraph; paid, with monetary updating without prejudice
but such shall not be less than seven (7) nor more to losses and damages, if any;
than one hundred and eighty (180) days. c) a proportionate price reduction.
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Article 105. Legal Guarantee of Adequacy. – The Art. 697. The abatement of a nuisance does not
legal guarantee of product or service adequacy does preclude the right of any person injured to recover
not require an express instrument or contractual damages for its past existence.
exoneration of the supplier being forbidden.
Art. 698. Lapse of time cannot legalize any nuisance,
Article 106. Prohibition in Contractual Stipulation. – whether public or private.
The stipulation in a contract of a clause preventing,
exonerating or reducing the obligation to indemnify
LIABILITY FOR NEGLIGENCE VS. LIABILITY FOR NUISANCE
for damages effected, as provided for in this and in
Negligence Nuisance
the preceding Articles, is hereby prohibited, if there is
Basis
more than one person responsible for the cause of
Liability is based on lack Liability attaches
the damage, they shall be jointly liable for the
redress established in the pertinent provisions of this of proper care and regardless of the skill
diligence exercised to avoid the
Act. However, if the damage is caused by a
injury
component or part incorporated in the product or
service, its manufacturer, builder or importer and the Condition of the Act
person who incorporated the component or part are Act complained of is There is continuing harm
jointly liable. already done which being suffered by the
Article 107. Penalties. – Any person who shall violate caused injury to the aggrieved party by the
any provision of this Chapter or its implementing plaintiff maintenance of the act
rules and regulations with respect to any consumer or thing which
product which is not food, cosmetic, or hazardous constitutes the nuisance
substance shall upon conviction, be subject to a fine Remedy
of not less than Five thousand pesos (P5,000.00) Action for damages Abatement
and by imprisonment of not more than one (1) year or
both upon the discretion of the court. NUISANCE PER SE
It is recognized as a nuisance under any and all
In case of juridical persons, the penalty shall be circumstances because it constitutes a direct menace
imposed upon its president, manager or head. If the to public health and safety and, for that reason, may
offender is an alien, he shall, after payment of fine be abated summarily under the undefined law of
and service of sentence, be deported without further necessity.
deportation proceedings.
To become a nuisance per se, the thing must, of
itself, because of its inherent qualities, without
complement, be productive of injury, or, by reason of
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the matter of its use or exposure, threaten or be breach of the peace, or doing unnecessary injury. But
dangerous to life or property. it is necessary:
(1) That demand be first made upon the owner or
NUISANCE PER ACCIDENCE possessor of the property to abate the nuisance;
It becomes a nuisance depending upon certain (2) That such demand has been rejected;
conditions and circumstances, and its existence (3) That the abatement be approved by the district
being a question of fact, it cannot be abated without health officer and executed with the assistance
due hearing thereon in a tribunal authorized to of the local police; and
decide whether such a thing does in law constitute a (4) That the value of the destruction does not
nuisance. exceed three thousand pesos.
Art. 702. The district health officer shall determine Del Rosario vs. Manila Electric Co. (1932): It is doubtful
whether or not abatement, without judicial whether contributory negligence can properly be
proceedings, is the best remedy against a public imputed to the deceased, owing to his immature
nuisance. years and the natural curiosity which a child would
feel to do something out of the ordinary, and the
mere fact that the deceased ignored the caution of a
Art. 703. A private person may file an action on companion of the age of 8 years does not, in our
account of a public nuisance, if it is specially injurious opinion, alter the case.
to himself.
Hidalgo Enterprises vs. Balandan (1952): One who
Art. 704. Any private person may abate a public maintains on his premises dangerous
nuisance which is specially injurious to him by instrumentalities or appliances of a character likely
removing, or if necessary, by destroying the thing to attract children in play, and who fails to exercise
which constitutes the same, without committing a ordinary care to prevent children from playing
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therewith or resorting thereto, is liable to a child of (18) Freedom from excessive fines, or cruel and
tender years who is injured thereby, even if the child unusual punishment, unless the same is
is technically a trespasser in the premises. imposed or inflicted in accordance with a statute
which has not been judicially declared
The principle reason for the doctrine is that the unconstitutional;
condition or appliance in question although its (19) Freedom of access to the courts
danger is apparent to those of age, is so enticing or
alluring to children of tender years as to induce them In any of the cases referred to in this article, whether
to approach, get on or use it, and this attractiveness or not the defendant’s act or omission constitutes a
is an implied invitation to such children criminal offense, the aggrieved party has a right to
commence an entirely separate and distinct civil
VIOLATION OF CONSTITUTIONAL RIGHTS action for damages, and for other relief. Such civil
VIOLATION OF CIVIL LIBERTIES action shall proceed independently of any criminal
Art 32. Any public officer or employee, or any private prosecution (if the latter be instituted) and may be
individual, who directly or indirectly obstructs, proved by a preponderance of evidence.
defeats, violates or in any manner impedes or
impairs any of the following rights and liberties of The indemnity shall include moral damages.
another person shall be liable to the latter for Exemplary damages may also be adjudicated.
damages:
(1) Freedom of religion The responsibility herein set forth is not demandable
(2) Freedom of speech from a judge unless his act or omission constitutes a
(3) Freedom to write for the press or to maintain a violation of the Penal code or any other penal
periodical publication statute.
(4) Freedom from arbitrary or illegal detention
(5) Freedom of suffrage Aberca, et al. vs. Ver, et al. (1988): It is obvious that
(6) The right against deprivation of property without the purpose of the above codal provision (Art. 32) is
due process of law to provide a sanction to the deeply cherished rights
(7) The right to just compensation when property is and freedoms enshrined in the Constitution. Its
taken for public use message is clear; no man may seek to violate those
(8) The right to equal protection of the laws sacred rights with impunity. In times of great
(9) The right to be secure in one’s person, house, upheaval or of social and political stress, when the
papers and effects against unreasonable temptation is strongest to yield — borrowing the
searches and seizures words of Chief Justice Claudio Teehankee — to the
(10) The liberty of abode and of changing the same law of force rather than the force of law, it is
(11) The right to privacy of communication and necessary to remind ourselves that certain basic
correspondence rights and liberties are immutable and cannot be
(12) The right to become a member of associations sacrificed to the transient needs or imperious
and societies for purposes not contrary to law demands of the ruling power. The rule of law must
(13) The right to take part in a peaceable assembly prevail, or else liberty will perish.
and petition the government for redress of
grievances VIOLATIONS OF RIGHTS COMMITTED BY PUBLIC OFFICERS
(14) The right to be free from involuntary servitude in Art. 27. Any person suffering material or moral loss
any form because a public servant or employee refuses or
(15) The right of the accused against excessive bail neglects, without just cause, to perform his official
(16) The right of the accused to be heard by himself duty may file an action for damages and other relief
and counsel, to be informed of the nature and against the latter, without prejudice to any
the cause of the accusation against him, to have disciplinary administrative action that may be taken.
a speedy and public trial, to meet the witnesses
face to face, to have compulsory process to Art. 32, supra.
secure the attendance of witnesses on is behalf;
(17) Freedom form being compelled to be a witness
Dereliction of Duty
against one’s self, or from being forced to
Amaro vs. Samanguit: Requisites:
confess his guilt, or from being induced by a
(1) Defendant is a public officer charged with a
promise of immunity or reward to make such
performance of a duty in favor of the plaintiff;
confession, except when the person confessing
(2) He refused or neglected without just cause to
becomes a State witness.
perform the duty;
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(3) Plaintiff sustained material or moral loss as a defective roads or streets belong to the province, city
consequence of such non-performance; or municipality. What said article requires is that the
(4) The amount of such damages, if material. province, city or municipality have either "control or
supervision" over said street or road.
Coverage
Applies only to acts of nonfeasance or the OWNERS OF MOTOR VEHICLES
nonperformance of some acts which a person is Art. 2184. In motor vehicle mishaps, the owner is
obliged or has responsibility to perform. solidarily liable with his driver, if the former, who was
in the vehicle, could have, by the use of the due
The duty of the public servant must be ministerial in diligence, prevented the misfortune. It is disputably
character. If the duty is discretionary, he is not liable presumed that a driver was negligent, if he had been
unless he acted in a notoriously arbitrary manner. found guilty of reckless driving or violating traffic
regulations at least twice within the next preceding
Defense of Good Faith is not available two months.
The reason of its unavailability is that an officer is
under constant obligation to discharge the duties of If the owner was not in the motor vehicle, the
his office, and it is not necessary to show that his provisions of article 2180 are applicable.
failure to act was due to malice or willfulness.
Art. 2185. Unless there is proof to the contrary, it is
Art. 34. When a member of a city or municipal police presumed that a person driving a motor vehicle has
force refuses or fails to render aid or protection to been negligent if at the time of the mishap, he was
any person in case of danger to life or property, such violating any traffic regulation.
peace officer shall be primarily liable for damages,
and the city or municipality shall be subsidiarily
responsible therefor. The civil action herein Art. 2186. Every owner of a motor vehicle shall file
recognized shall be independent of any criminal with the proper government office a bond executed
proceedings, and a preponderance of evidence shall by a government-controlled corporation or office, to
suffice to support such action. answer for damages to third persons. The amount of
the bond and other terms shall be fixed by the
Art. 34 covers a situation where: competent public official.
(a) There is danger to the life or property of person;
(b) A member of a city or municipal police force who The owner is SOLIDARILY liable with the driver for
is present in the scene refused or failed to render motor vehicle mishaps when:
aid or protection to the person; and (1) The owner was IN the vehicle at the time, AND
(c) Damages are caused wither to the person and/or (2) The owner could have, by the use of due
property of the victim. diligence, prevented the misfortune.
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third persons and as such is directly and primarily accident. And as far as perception is concerned,
responsible for the consequences incident to its absent a minimum level imposed by law, a maneuver
operation, so that in contemplation of law, such that appears to be fraught with danger to one
owner/operator of record is the employer of the passenger may appear to be entirely safe and
driver, the actual operator and employer being commonplace to another. Were the law to require a
considered merely as his agent.” uniform standard of perceptiveness, employment of
professional drivers by car owners who, by their very
The registered owner of a motor vehicle is primarily inadequacies, have real need of drivers' services,
liable for the damage or injury caused to another, would be effectively proscribed.
but he has a right to be indemnified by the real
owner of the amount he was required to pay Duavit vs. CA (1989): An owner of a vehicle cannot be
(Tamayo vs, Aquino) This rule applies both to private held liable for an accident involving the said vehicle if
and to common carriers with respect to their the same was driven without his consent or
passengers. knowledge and by a person not employed by him.
Note: PROPRIETOR OF BUILDING OR STRUCTURE
If the owner was NOT inside the vehicle, Art. 2180
applies. Art. 2190. The proprietor of a building or structure is
responsible for the damages resulting from its total
The presumption is AGAINST the owner of the motor or partial collapse, if it should be due to the lack of
vehicle. He has the burden of proving due diligence. necessary repairs.
Thus, once a driver is proven negligent in causing Art. 2191. Proprietors shall also be responsible for
damage, the law presumes the vehicle owner equally damages caused:
negligent and imposes upon the latter the burden of (1) By the explosion of machinery which has not
proving proper selection of employee as a defense. been taken care of with due diligence, and the
inflammation of explosive substances which
Summary: have not been kept in a safe and adequate
Owner PRESENT in the Owner NOT PRESENT in place;
Vehicle the Vehicle (2) By excessive smoke, which may be harmful to
Owner is liable if he could Owner may be held persons or property;
have prevented the liable under Art. 2180, (3) By the falling of trees situated at or near
mishap by the exercise of par. 5. highways or lanes, if not caused by force
due diligence. majeure;
(4) By emanations from tubes, canals, sewers or
Caedo vs. Yu Khe Tai (1968): Car owners are not held deposits of infectious matter, constructed
to a uniform and inflexible standard of diligence as without precautions suitable to the place.
are professional drivers. In many cases they refrain
from driving their own cars and instead hire other Art. 2192. If damage referred to in the two preceding
persons to drive for them precisely because they are articles should be the result of any defect in the
not trained or endowed with sufficient discernment construction mentioned in article 1723, the third
to know the rules of traffic or to appreciate the person suffering damages may proceed only against
relative dangers posed by the different situations the engineer or architect or contractor in accordance
that are continually encountered on the road. What with said article, within the period therein fixed.
would be a negligent omission under aforesaid
Article on the part of a car owner who is in the prime Ownership of a building imposes on the proprietor
of age and knows how to handle a motor vehicle is thereof the duty to maintain it in good condition at
not necessarily so on the part, say, of an old and all times to the end that it may not collapse either
infirm person who is not similarly equipped. totally or partially as to cause damage or injury to
another’s person or property.
The law does not require that a person must possess
a certain measure of skill or proficiency either in the This duty obtains whether the building is leased or
mechanics of driving or in the observance of traffic held in usufruct.
rules before he may own a motor vehicle. The test of
his negligence, within the meaning of Article 2184, is Considering, however, that the lessee or usufructuary
his omission to do that which the evidence of his own has direct and immediate control of the building, the
senses tells him he should do in order to avoid the law imposes on him the duty to notify the proprietor
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of such urgent or extra-ordinary repairs AND where based on the negligence or on the presumed lack of
the proprietor’s failure to make the necessary repairs vigilance of the possessor or user of the animal
was due to the failure of the lessee or usufructuary to causing damage. It is based on natural equity and on
notify him, the proprietor is entitled to the principle of social interest that he who possesses
indemnification for damages he may have been animals for his utility, pleasure, or service, must
required to pay to the parties. answer for any damage which such animal may
cause.
Gotesco Investment Corp. vs. Chatto (1992): The
owner or proprietor of a place of public amusement POSSIBLE DEFENSES AGAINST THIS LIABILITY
impliedly warrants that the premises, appliances and (1) Force Majeure
amusement devices are safe for the purpose for (2) Fault of person suffering damage
which they are designed, the doctrine being subject (3) Act of third persons
to no other exception or qualification than that he
does not contract against unknown defects not SCOPE OF PROVISION
discoverable by ordinary or reasonable means. Contention that the defendant could not be
expected to exercise remote control of the animal is
HEAD OF FAMILY
not acceptable. In fact, Art. 2183 holds the possessor
liable even if the animal should “escape or be lost”
Art 2193. The head of a family that lives in a building and so be removed from his control.
or a part thereof, is responsible for damages caused
by things thrown or falling from the same. It is likewise immaterial that the animal was tame
and was merely provoked by the victim. The law does
Purpose of the law not speak only of vicious animals but covers even
To relieve the injured party of the difficulty of tame ones as long as they cause injury.
determining and proving who threw the thing or
what caused it to fall, or that either was due to the NUISANCE
fault or negligence of any particular individual. Sangco: A person who creates or maintains a
nuisance is liable for the resulting injury to others
Dingcong vs. Kanaan (1941): Lessee is considered as regardless of the degree of care or skill exercised to
the head of the family. It is enough that he lives in avoid the injury. The creation or maintenance of a
and has control over it. nuisance is a violation of an absolute duty.
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reason, it will readily be seen that whether a There can be no doubt that commercial and
particular thing is a nuisance is generally a question industrial activities which are lawful in themselves
of fact, to be determined in the first instance before may become nuisances if they are so offensive to the
the term nuisance can be applied to it. senses that they render the enjoyment of life and
property uncomfortable. It is no defense that skill
Salao and Lucas vs. Santos (1939): Nuisances are of and care have been exercised and the most improved
two kinds: nuisance per se and nuisance per methods and appliances employed to prevent such
accidens. The first is recognized as a nuisance under result.
any and all circumstances because it constitutes a
direct menace to public health or safety and, for that PRODUCTS LIABILITY (SUPRA)
reason, may ‘be abated summarily under the Art 2187. Manufacturers and processors of foodstuffs,
undefined law of necessity. The second is that which drinks, toilet articles and similar goods shall be liable
depends upon certain conditions and circumstances, for death or injuries caused by any noxious or
and its existence being a question of fact, it cannot harmful substances used, although no contractual
be abated without due hearing thereon in a tribunal relation exists between them and the consumers.
authorized to decide whether such a thing does in
law constitute a nuisance. CONSUMER ACT
Consumer Act Provisions (supra)
EASEMENT AGAINST NUISANCE
Art. 682. Every building or piece of land is subject to Coca-Cola v. CA (1993): While it may be true that the
the easement which prohibits the proprietor or pre-existing contract between the parties may, as a
possessor from committing nuisance through noise, general rule, bar the applicability of the law on
jarring, offensive odor, smoke, heat, dust, water, quasi-delict, the liability may itself be deemed to
glare and other causes. arise from quasi-delict if the act which breaks the
contract is also a quasi-delict.
Art. 683. Subject to zoning, health, police and other
laws and regulations, factories and shops may be Summary:
maintained provided the least possible annoyance is Person Strictly For What Defenses or
caused to the neighborhood. Liable Exceptions
Possessor of an For the damage Force majeure
The provisions impose a prohibition upon owners of animal or it may cause Fault of the
buildings of land from committing therein a nuisance whoever makes person who
or using such buildings or lands in a manner as will use of them suffered
constitute a nuisance. It is based on the maxim sic even if the damage
utere tuo ut alienum non laedas (so use your own as animal is lost or
not to injure another’s property). escaped
Owner of Motor Motor vehicle Solidary liability
Velasco vs. Manila Electric Co. (1971): The general rule Vehicle mishaps only if the
is that everyone is bound to bear the habitual or owner was in
customary inconveniences that result from the the vehicle and
proximity of others, and so long as this level is not if he could have
surpassed, he may not complain against them. But if prevented it
the prejudice exceeds the inconveniences that such thru due
proximity habitually brings, the neighbor who causes diligence
such disturbances is held responsible for the If not in vehicle
resulting damage, being guilty of causing nuisance. 2180
Manufacturers Death and Absence on
While no previous adjudications on the specific issue and Processors injuries caused contractual
have been made in the Philippines, our law of of foodstuffs, by any noxious relation NOT a
nuisances is of American origin, and a review of drinks, toilet or harmful defense
authorities clearly indicates the rule to be that the articles and substances used
causing or maintenance of disturbing noise or sound similar goods
may constitute an actionable nuisance. (FDTAS)
Defendant in Death or injury possession or
possession of results from use thereof is
dangerous such possession indispensable in
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Person Strictly For What Defenses or Person Strictly For What Defenses or
Liable Exceptions Liable Exceptions
weapons/ his occupation without
substances or business precautions
such as firearms suitable to the
and poison place
Provinces, Cities The death or Public works Engineer, if damage of
and injuries suffered must be under Architect or building or
Municipalities by any person by their Contractor structure is
reason of the supervisions caused by defect
defective in construction
condition of which happens
roads, streets, within 15 years
bridges, public from
buildings, and construction;
other public action must be
works brought within
Proprietor ofa) Total or partial Responsibility 10 years from
building/ collapse of for collapse collapse
structure building or should be due Head of the Liable for
structure if due to the lack of Family that lives damages
to lack of necessary in a building or caused by
necessary repair repairs any part thereof things thrown or
s falling from the
b) Explosion of same
machinery
which has not
been taken
cared of with
due diligence,
and the
inflammation of
explosive
substances
which have not
been kept in a
safe and
adequate place
c) By excessive
smoke, which
may be harmful
to persons or
property
d) By falling of
trees situated at
or near
highways or
lanes, if not
caused by force
majeure
e) By emanations
from tubes,
canals, sewers
or deposits of
infectious
matter,
constructed
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the best evidence obtainable by the injured party, the VALUE OF LOSS; UNREALIZED PROFIT
actual amount of loss. Art. 2200. Indemnification for damages shall
comprehend not only the value of the loss suffered,
Damages must be proved and cannot be presumed. but also that of the profits which the obligee failed to
It must be established by clear evidence. obtain.
Valencia vs. Tantoco (1956): Damages must be In other words, indemnification for damages is not
proved with reasonable accuracy, even when not limited to damnum emergens (actual loss) but
denied. extends to lucrum cessans (a cession of gain or
amount of profit lost).
DEGREE OF CERTAINTY REQUIRED AS TO: FACT,
CAUSE AND AMOUNT OF DAMAGES ATTORNEY’S FEES AND EXPENSES OF
Damages are not rendered uncertain just because LITIGATION
they cannot be calculated with absolute exactness or Art. 2208. In the absence of stipulation, attorney's
because the consequences of the wrong are not fees and expenses of litigation, other than judicial
precisely definite in pecuniary amount. costs, cannot be recovered, except:
(1) When exemplary damages are awarded;
The principle which will disallow recovery of (2) When the defendant's act or omission has
damages when their existence rests solely on compelled the plaintiff to litigate with third
speculation applies both to the fact and cause of persons or to incur expenses to protect his
damages. interest;
(3) In criminal cases of malicious prosecution
(1) The requirement of certainty does not prevent the against the plaintiff;
drawing of reasonable inferences from the fact (4) In case of a clearly unfounded civil action or
and circumstance in evidence. proceeding against the plaintiff;
(2) Events which occur after the wrong complained (5) Where the defendant acted in gross and evident
of may serve to render the damage sufficiently bad faith in refusing to satisfy the plaintiff's
certain. plainly valid, just and demandable claim;
(3) The damages must be susceptible of (6) In actions for legal support;
ascertainment in some manner other than by (7) In actions for the recovery of wages of household
mere speculation, conjecture or surmise and by helpers, laborers and skilled workers;
reference to some fairly definite standard, such as (8) In actions for indemnity under workmen's
market value, established experience or direct compensation and employer's liability laws;
inference from known circumstances. (9) In a separate civil action to recover civil liability
arising from a crime;
Talisay-Silay vs. Associacion: Where, however, it is (10) When at least double judicial costs are awarded;
reasonably certain that injury consisting of failure to (11) In any other case where the court deems it just
realize otherwise reasonably expected profits had and equitable that attorney's fees and expenses
been incurred, uncertainty as to the precise amount of litigation should be recovered.
of such unrealized profits will not prevent recovery or
the award of damages. In all cases, the attorney's fees and expenses of
litigation must be reasonable.
NOT SPECULATIVE
Actual damages to be compensable must be proved General Rule
by clear evidence, a court cannot rely on speculation, Attorney’s fees and costs of litigation are recoverable
conjectures or guesswork as to the fact and amount IF stipulated.
of damages, but must depend on actual proof that
damages has been suffered and on evidence of the Exceptions
actual amount. If there is no stipulation, they are recoverable only in
the following cases:
COMPONENTS (1) By reason of malice or bad faith
Actual damage covers the following: (a) When exemplary damages are awarded
(1) Value of loss; unrealized profit (b) In case of a clearly unfounded civil action
(2) Attorney’s fees and expenses of litigation (c) Where defendant acted in gross and evident
(3) Interest bad faith
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(d) When at least double judicial costs are No interest may be recovered on unliquidated (not
awarded fixed in amount) claims or damages, except when
(2) By reason of plaintiff’s indigence in the demand can be established with reasonable
(a) Actions for legal support certainty at the Court’s discretion.
(b) Actions for recovery of wages of laborers,
etc. COMPOUNDING OF INTEREST
(c) Actions for workmen’s compensation Interest due shall earn legal interest from the time it
(3) By reason of crimes in is judicially demanded, although the obligation may
(a) Criminal cases of malicious prosecution be silent on the point.
(b) Separate actions to recover civil liability
arising from crime Note that interest due can earn only at 6%, whether
(4) By reason of equity the rate of interest of the principal is greater than
(a) Where the defendant’s act compelled 6%.
plaintiff to litigate with third persons
(b) Where the Court deems it just and equitable DETERMINATION OF LEGAL INTEREST
(1) When an obligation, regardless of its source (i.e.,
Note: law, contracts, quasi-contracts, delicts or quasi-
In all cases, attorney’s fees and costs of litigation delicts) is breached, the contravenor can be held
must be reasonable. liable for damages.
(2) With regard particularly to an AWARD OF
Even if expressly stipulated, attorney’s fees are INTEREST in the concept of actual and
subject to control by the Courts. compensatory damages, the RATE of interest, as
well as the ACCRUAL thereof, is imposed, as
INTEREST follows (Eastern Shipping Lines vs. CA, 1994):
Art. 2209. If the obligation consists in the payment of
a sum of money, and the debtor incurs in delay, the
indemnity for damages, there being no stipulation to Base Rate Accrual
the contrary, shall be the payment of the interest
agreed upon, and in the absence of stipulation, the (a) When the (a) That which to be computed
legal interest, which is six per cent per annum. obligation is may have from default, i.e.,
breached, and it been from JUDICIAL or
consists in the stipulated in EXTRAJUDICIAL
Art. 2210. Interest may, in the discretion of the court, PAYMENT OF A writing. demand under
be allowed upon damages awarded for breach of SUM OF b) In the and subject to the
contract. MONEY, i.e., a absence of provisions of
loan or stipulation, Article 1169 of the
Art. 2211. In crimes and quasi-delicts, interest as a forbearance of the rate of Civil Code.
part of the damages may, in a proper case, be money, the interest shall
adjudicated in the discretion of the court. interest due be 12% per
should be annum (legal
Art. 2212. Interest due shall earn legal interest from interest)
the time it is judicially demanded, although the (b) Furthermore, legal interest from the time it is
obligation may be silent upon this point. the INTEREST JUDICIALLY
DUE shall itself demanded.
earn
Art. 2213. Interest cannot be recovered upon (c) When an at the rate of If claim or
unliquidated claims or damages, except when the obligation, NOT 6% per damages are
demand can be established with reasonable constituting a annum. LIQUIDATED,
certainty. loan or from default, i.e.,
forbearance of from judicial or
INTEREST ACCRUES WHEN: money, is extrajudicial
(1) The obligation consists in the payment of a sum breached, an demand. (Art.
of money interest on the 1169, Civil Code)
(2) Debtor incurs in delay AMOUNT OF
(3) There being no stipulation to the contrary DAMAGES If UNLIQUIDATED,
awarded may from the time the
be imposed at demand can be
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(1) All damages which may be reasonably damages were foreseen, or reasonably foreseeable
attributed to the non-performance of the by the defendant.
obligation, whether foreseen or not
(2) Exemplary or corrective damages Algarra vs. Sandejas: Actual damages for a negligent
act or omission are confined to those which "were
Note: foreseen or might have been foreseen," or those
Interest may be allowed on damages awarded, in the which were "the natural and probable
discretion of the court. consequences" or "the direct and immediate
consequences" of the act or omission.
Daywalt vs. Recoletos et al.: The damages
recoverable upon breach of contract are, primarily, Note:
the ordinary, natural and in a sense the necessary Damages are to be increased or decreased (in case of
damages resulting from the breach. Other damages, crimes only) according to aggravating or mitigating
known as special damages, are recoverable where it circumstances present.
appears that the particular conditions which made
such damages a probable consequence of the Interest, as part of damages, may be adjudicated in a
breach were known to the delinquent party at the proper case, in the Court’s discretion.
time the contract was made.
Contributory negligence of the plaintiff, in case of
IN CRIMES AND QUASI-DELICTS quasi-delicts, shall reduce the damages to which he
may be entitled.
Art. 2202. In crimes and quasi-delicts, the defendant
shall be liable for all damages which are the natural
Note:
and probable consequences of the act or omission
In crimes, no mitigation for contributory negligence.
complained of. It is not necessary that such damages
have been foreseen or could have reasonably been
foreseen by the defendant.
Art. 2206. The amount of damages for death caused Moral Damages
by a crime or quasi-delict shall be at least three
thousand pesos, even though there may have been Art. 2217. Moral damages include physical suffering,
mitigating circumstances. In addition: mental anguish, fright, serious anxiety, besmirched
(1) The defendant shall be liable for the loss of the reputation, wounded feelings, moral shock, social
earning capacity of the deceased, and the humiliation, and similar injury. Though incapable of
indemnity shall be paid to the heirs of the latter; pecuniary computation, moral damages may be
such indemnity shall in every case be assessed recovered if they are the proximate result of the
and awarded by the court, unless the deceased defendant's wrongful act for omission.
on account of permanent physical disability not
caused by the defendant, had no earning
Art. 2218. In the adjudication of moral damages, the
capacity at the time of his death;
sentimental value of property, real or personal, may
(2) If the deceased was obliged to give support
be considered.
according to the provisions of article 291, the
recipient who is not an heir called to the
decedent's inheritance by the law of testate or Visayan Sawmill vs. CA: Moral damages are
intestate succession, may demand support from emphatically not intended to enrich a complainant
the person causing the death, for a period not at the expense of the defendant. Its award is aimed
exceeding five years, the exact duration to be at the restoration, within the limits of the possible, of
fixed by the court; the spiritual status quo ante, and it must be
(3) The spouse, legitimate and illegitimate proportional to the suffering inflicted.
descendants and ascendants of the deceased
may demand moral damages for mental Bagumbayan Corp. vs. IAC (1984): Mental suffering
anguish by reason of the death of the deceased. means distress or serious pain as distinguished from
annoyance, regret or vexation.
Defendant is liable for all damages which are the
Mental anguish is intense mental suffering.
natural and probable consequences of the act or
Generally, damages for mental anguish are limited
omission complained of; it is not necessary that such
to cases in which there has been a personal physical
injury or where the defendant willfully, wantonly,
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physical suffering and mental anguish, which can be (1) A criminal offense resulting in physical injuries;
experienced only by one having a nervous system. (2) Quasi-delicts causing physical injuries;
The statement in People vs. Manero and Mambulao (3) Seduction, abduction, rape, or other lascivious
Lumber Co. vs. PNB that a corporation may recover acts;
moral damages if it "has a good reputation that is (4) Adultery or concubinage;
debased, resulting in social humiliation" is an obiter (5) Illegal or arbitrary detention or arrest;
dictum. (6) Illegal search;
(7) Libel, slander or any other form of defamation;
NAPOCOR vs. Philipp Brothers: While it is true that (8) Malicious prosecution;
besmirched reputation is included in moral (9) Acts mentioned in article 309;
damages, it cannot cause mental anguish to a (10) Acts and actions referred to in articles 21, 26, 27,
corporation, unlike in the case of a natural person, 28, 29, 30, 32, 34, and 35.
for a corporation has no reputation in the sense that
an individual has, and besides, it is inherently The parents of the female seduced, abducted, raped,
impossible for a corporation to suffer mental or abused, referred to in No. 3 of this article, may
anguish. also recover moral damages.
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(1) Prying into the privacy of another's residence: (7) The right to a just compensation when private
(2) Meddling with or disturbing the private life or property is taken for public use;
family relations of another; (8) The right to the equal protection of the laws;
(3) Intriguing to cause another to be alienated from (9) The right to be secure in one's person, house,
his friends; papers, and effects against unreasonable
(4) Vexing or humiliating another on account of his searches and seizures;
religious beliefs, lowly station in life, place of (10) The liberty of abode and of changing the same;
birth, physical defect, or other personal (11) The privacy of communication and
condition. correspondence;
(12) The right to become a member of associations
or societies for purposes not contrary to law;
Art. 27. Any person suffering material or moral loss
(13) The right to take part in a peaceable assembly
because a public servant or employee refuses or
to petition the government for redress of
neglects, without just cause, to perform his official
grievances;
duty may file an action for damages and other relief
(14) The right to be free from involuntary servitude in
against he latter, without prejudice to any
any form;
disciplinary administrative action that may be taken.
(15) The right of the accused against excessive bail;
(16) The right of the accused to be heard by himself
Art. 28. Unfair competition in agricultural, and counsel, to be informed of the nature and
commercial or industrial enterprises or in labor cause of the accusation against him, to have a
through the use of force, intimidation, deceit, speedy and public trial, to meet the witnesses
machination or any other unjust, oppressive or face to face, and to have compulsory process to
highhanded method shall give rise to a right of secure the attendance of witness in his behalf;
action by the person who thereby suffers damage. (17) Freedom from being compelled to be a witness
against one's self, or from being forced to
Art. 29. When the accused in a criminal prosecution confess guilt, or from being induced by a
is acquitted on the ground that his guilt has not been promise of immunity or reward to make such
proved beyond reasonable doubt, a civil action for confession, except when the person confessing
damages for the same act or omission may be becomes a State witness;
instituted. Such action requires only a (18) Freedom from excessive fines, or cruel and
preponderance of evidence. Upon motion of the unusual punishment, unless the same is
defendant, the court may require the plaintiff to file a imposed or inflicted in accordance with a statute
bond to answer for damages in case the complaint which has not been judicially declared
should be found to be malicious. unconstitutional; and
(19) Freedom of access to the courts.
If in a criminal case the judgment of acquittal is
based upon reasonable doubt, the court shall so In any of the cases referred to in this article, whether
declare. In the absence of any declaration to that or not the defendant's act or omission constitutes a
effect, it may be inferred from the text of the decision criminal offense, the aggrieved party has a right to
whether or not the acquittal is due to that ground. commence an entirely separate and distinct civil
action for damages, and for other relief. Such civil
action shall proceed independently of any criminal
Art. 32. Any public officer or employee, or any private prosecution (if the latter be instituted), and mat be
individual, who directly or indirectly obstructs, proved by a preponderance of evidence.
defeats, violates or in any manner impedes or
impairs any of the following rights and liberties of The indemnity shall include moral damages.
another person shall be liable to the latter for Exemplary damages may also be adjudicated.
damages: The responsibility herein set forth is not demandable
(1) Freedom of religion; from a judge unless his act or omission constitutes a
(2) Freedom of speech; violation of the Penal Code or other penal statute.
(3) Freedom to write for the press or to maintain a
periodical publication;
(4) Freedom from arbitrary or illegal detention; Art. 34. When a member of a city or municipal police
(5) Freedom of suffrage; force refuses or fails to render aid or protection to
(6) The right against deprivation of property without any person in case of danger to life or property, such
due process of law; peace officer shall be primarily liable for damages,
and the city or municipality shall be subsidiarily
responsible therefor. The civil action herein
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recognized shall be independent of any criminal Art. 2221. Nominal damages are adjudicated in order
proceedings, and a preponderance of evidence shall that a right of the plaintiff, which has been violated
suffice to support such action. or invaded by the defendant, may be vindicated or
recognized, and not for the purpose of indemnifying
Art. 35. When a person, claiming to be injured by a the plaintiff for any loss suffered by him.
criminal offense, charges another with the same, for
which no independent civil action is granted in this Art. 2222. The court may award nominal damages in
Code or any special law, but the justice of the peace every obligation arising from any source enumerated
finds no reasonable grounds to believe that a crime in article 1157, or in every case where any property
has been committed, or the prosecuting attorney right has been invaded.
refuses or fails to institute criminal proceedings, the
complaint may bring a civil action for damages
Art. 2223. The adjudication of nominal damages
against the alleged offender. Such civil action may
shall preclude further contest upon the right
be supported by a preponderance of evidence. Upon
involved and all accessory questions, as between the
the defendant's motion, the court may require the
parties to the suit, or their respective heirs and
plaintiff to file a bond to indemnify the defendant in
assigns.
case the complaint should be found to be malicious.
If during the pendency of the civil action, an General Rule: One does not ask for nominal
information should be presented by the prosecuting damages, and it is in lieu of the actual, moral,
attorney, the civil action shall be suspended until the temperate, or liquidated damages.
termination of the criminal proceedings.
Nominal damages are incompatible with: actual,
temperate and exemplary damages.
Please refer to previous discussions on the
provisions.
Armovit vs. CA: Nominal damages cannot co-exist
with actual or compensatory damages.
IN CASES OF MALICIOUS PROSECUTION
Mijares vs. CA: Moral damages cannot be recovered Francisco v. Ferrer: No moral or exemplary damages
from a person who has filed a complaint against was awarded. Nevertheless, when confronted with
another in good faith, or without malice or bad faith. their failure to deliver on the wedding day the
If damage results from the filing of the complaint, it wedding cake ordered and paid for, petitioners gave
is damnum absque injuria. the lame excuse that delivery was probably delayed
because of the traffic, when in truth, no cake could
Castillo vs. Castillo: The adverse result of an action be delivered because the order slip got lost. For such
does not per se make the act wrongful and subject prevarication, petitioners must be held liable for
the actor to the payment of moral damages. The law nominal damages for insensitivity, inadvertence or
could not have meant to impose a penalty on the right inattention to their customer's anxiety and need of
to litigate; such right is so precious that moral the hour.
damages may not be charged on those who may
exercise it erroneously.
Temperate Damages
Nominal Damages Art. 2224. Temperate or moderate damages, which
are more than nominal but less than compensatory
Nominal damages consist in damages awarded, not damages, may be recovered when the court finds
for purposes of indemnifying the plaintiff for any loss that some pecuniary loss has been suffered but its
suffered, but for the vindication or recognition of a amount cannot, from the nature of the case, be
right violated by the defendant. provided with certainty.
REQUISITES AND CHARACTERISTICS
(1) Invasion or violation of any legal or property right. Art. 2225. Temperate damages must be reasonable
(2) No proof of loss is required. under the circumstances.
(3) The award is to vindicate the right violated.
WHEN AWARDED
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These damages are awarded for pecuniary loss, in an Liquidated damages are those damages agreed
amount that, from the nature of the case, cannot be upon by the parties to a contract to be paid in case of
proved with certainty. breach thereof.
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PNB vs. CA: However, the award of P1,000,000 plaintiff must show that he would be entitled to
exemplary damages is also far too excessive and moral, temperate or compensatory damages were it
should likewise be reduced to an equitable level. not for the stipulation for liquidated damages.
Exemplary damages are imposed not to enrich one
party or impoverish another but to serve as a Art. 2235. A stipulation whereby exemplary damages
deterrent against or as a negative incentive to curb are renounced in advance shall be null and void.
socially deleterious actions.
Requisites to recover exemplary damages and
liquidated damages agreed upon
The plaintiff must show that he/she is entitled to
moral, temperate or compensatory damages:
WHEN RECOVERABLE
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to exercise the diligence of a good father of a family Cangco vs. Manila Railroad Co. (1918): In determining
to minimize the damages resulting from the act or the question of contributory negligence in
omission in question. One who is injured then by the performing such act — that is to say, whether the
wrongful or negligent act of another should exercise passenger acted prudently or recklessly — the age,
reasonable care and diligence to minimize the sex, and physical condition of the passenger are
resulting damage. Anyway, he can recover from the circumstances necessarily affecting the safety of the
wrongdoer money lost in reasonable efforts to passenger, and should be considered.
preserve the property injured and for injuries incurred
in attempting to prevent damage to it. PLAINTIFF’S NEGLIGENCE
Manila Electric vs. Remonquillo (1956): Even if Manila
BURDEN OF PROOF Electric is negligent, in order that it may be held
The DEFENDANT has the burden of proof to liable, its negligence must be the proximate and
establish that the victim, by the exercise of the direct cause of the accident.
diligence of a good father of a family, could have
mitigated the damages. In the absence of such Bernardo vs. Legaspi (1914): Both of the parties
proof, the amount of damages cannot be reduced. contributed to the proximate cause; hence, they
cannot recover from one another.
Note:
The victim is required only to take such steps as an IN CONTRACTS, QUASI-CONTRACTS AND QUASI-DELICTS
ordinary prudent man would reasonably adopt for Art. 2215 In contracts, quasi-contracts, and quasi-
his own interest. delicts, the court may equitably mitigate the
damages under circumstances other than the case
RULES referred to in the preceding article, as in the
following instances:
IN CRIMES
(1) That the plaintiff himself has contravened the
Art. 2204. In crimes, the damages to be adjudicated terms of the contract;
may be respectively increased or lessened according (2) That the plaintiff has derived some benefit as a
to the aggravating or mitigating circumstances. result of the contract;
(3) In cases where exemplary damages are to be
IN QUASI-DELICTS awarded, that the defendant acted upon the
advice of counsel;
Art. 2214. In quasi-delicts, the contributory (4) That the loss would have resulted in any event;
negligence of the plaintiff shall reduce the damages (5) That since the filing of the action, the defendant
that he may recover. has done his best to lessen the plaintiff's loss or
injury.
CONTRIBUTORY NEGLIGENCE
INSTANCES OF GROUNDS FOR MITIGATION OF DAMAGES
Genobiagon vs. CA (1989): The alleged contributory
negligence of the victim, if any, does not exonerate (a) For Contracts:
the accused in criminal cases committed through (1) Violation of terms of the contract by the
reckless imprudence, since one cannot allege the plaintiff himself;
negligence of another to evade the effects of his own (2) Obtention or enjoyment of benefit under the
negligence. contract by the plaintiff himself;
(3) Defendant acted upon advice of counsel in
cases where exemplary damages are to be
Rakes vs. Atlantic (1907): If so, the disobedience of
awarded such as under Articles 2230, 2231,
the plaintiff in placing himself in danger contributed
and 2232;
in some degree to the injury as a proximate,
(4) Defendant has done his best to lessen the
although not as its primary cause.
plaintiff’s injury or loss.
(Supreme Court in this case cited numerous foreign (b) For Quasi-Contracts:
precedents, mostly leaning towards the doctrine that (1) In cases where exemplary damages are to
contributory negligence on the part of the plaintiff be awarded such as in Art. 2232;
did not exonerate defendant from liability, but it led (2) Defendant has done his best to lessen the
to the reduction of damages awarded to the plantiff.) plaintiff’s injury or loss.
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NOMINAL DAMAGES
Art. 2223. The adjudication of nominal damages
shall preclude further contest upon the right
involved and all accessory questions, as between the
parties to the suit, or their respective heirs and
assigns.
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