Professional Documents
Culture Documents
Civil Law
Civil Law
Course Outline
Art. 2 NCC; Art.5 Labor Code; Sec. 3(1) & 4, Ch. 2, Book VII,
Administrative Code of 1987; BSP Circular 799
If the law provides for its own effectivity date, then it takes effect on the
said date, subject to the requirement of publication. The clause “unless
otherwise provided” refers to the date of effectivity and not the to the
requirement of publication itself, which cannot in any event be omitted.
PASEI vs. Torres, G.R. NO. 101279,Aug. 06, 1992 212 SCRA 298
Although the questioned circulars are a valid exercise of the police power
as delegated to the executive branch of Government, they are legally
invalid, defective and unenforceable for lack of proper publication and
filing in the Office of the National Administrative Register as required in
Article 2 of the Civil Code, Article 5 of the Labor Code and Sections 3(1)
and 4, Chapter 2, Book VII of the Administrative Code of 1987
Rep. vs. Extelcom, G.R. NO. 147096,Jan. 15, 2002 373 SCRA 316
1
of 1987 which implies that the filing of the rules with the UP Law Center
is the operative act that gives the rules force and effect.
Cojuangco, Jr. vs. Rep., G.R. NO. 180705, Nov. 27,2012 686 SCRA
472
The Court cannot rely on a handwritten note that was not part of
Proclamation No. 2476 as published. Without publication, the note never
had any legal force and effect.
The term “laws” do not include decisions of the Supreme Court because
lawyers in the active practice must keep abreast of decisions, particularly
where issues have been clarified, consistently reiterated and published in
advanced reports and the SCRA.
The accused is prosecuted for the crime of bigamy for not obtaining a
judicial declaration of nullity of his first marriage before entering into
another marriage. Ignorance of the existence of article 40 of the Family
Code canno enve be successfully invoked as an excuse.
Bernabe v. Alejo G.R. NO. 140500, Jan. 21, 2002 374 SCRA 180
2
Whether or not, an alien, who is qualified to adopt at the time of filing
the petition, can be disqualified by the new provisions of the family code.
An alien qualified to adopt under the Child and Youth Welfare Code,
which was in force at the time of the filing of the petition, acquired a
vested right which could not be affected by the subsequent enactment of
a new law disqualifying him. Vested rights include not only legal or
equitable title to the enforcement of a demand, but also an exemption
from new obligations created after the right has vested.
The two marriages involved in this case was entered during the effectivity
of the New Civil Code. The Family Code has retroactive effect unless there
be impairment of vested rights.
Implied repeals are not to be favored because they rest only on the
presumption that because the old and the new laws are incompatible
with each other, there is an intention to repeal the old. There must be a
plain, unavoidable and irreconcilable repugnancy between the two.
When there is a conflict between a general law and a special statute, the
special statute should prevail since it evinces the legislative intent more
clearly than the general statute. The special law is to be taken as an
exception to the general law in the absence of special circumstances
forcing a contrary conclusion.
3
The Supreme Court declared the moratorium law unconstitutional but it
did not allow to toll the prescriptive period of the right to foreclose the
mortgage. The court adopted the view that before an act is declared
unconstitutional it is an operative fact which can be the source of rights
and duties.
Article 8. Stare Decisis; Case Law; See also Article 36, FC; article 9,
10, 11, 12 , 13, 14 NCC
Ting v. Velez-Ting, G.R. NO. 166562, Mar. 31, 2009 582 SCRA 694
Articles 15, 16, 17, 50, 51 (New Civil Code); Article 26, Family Code
Van Dorn vs. Romillo G.R. NO.L-68470 October 8, 1985 139 SCRA
139
4
which may be recognized in the Philippines, provided they are valid
according to their national law.
Pilapil vs. Ibay-Somera, G.R. NO. 80116 June 30, 1989 174 SCRA
652
Recio vs. Recio G.R. NO. 138322. October 2, 2001 366 SCRA 437
Roehr v. Rodriguez,G.R. NO. 142820 ,Jun. 30, 2003 404 SCRA 495
Morigo v. People, G.R. NO. 145226 , Feb. 6, 2004 422 SCRA 376
Rep. v. Orbecido, G.R. NO. 154380, Oct. 05, 2005 472 SCRA 114 –
Whether or not, a Filipino Spouse can remarry under ARTICLE 26 OF
THE FAMILY CODE where his,her spouse is later naturalized as a foreign
citizen and obtains a valid divorce decree capacitating him or her to
remarry. The reckoning point is not the citizenship of the parties at the
time of the celebration of the marriage, but their citizenship at the time a
valid divorce is obtained abroad by the alien spouse capacitating the
latter to remarry.
5
Corpuz v. Sto. Tomas, G.R.NO. 186571, Aug. 11, 2010 628 SCRA
266
In Gerbert’s case, since both the foreign divorce decree and the national
law of the alien, recognizing his or her capacity to obtain a divorce,
purport to be official acts of a sovereign authority, Section 24, Rule 132
of the Rules of Court comes into play. This Section requires proof, either
by (1) official publications or (2) copies attested by the officer having legal
custody of the documents. If the copies of official records are not kept in
the Philippines, these must be (a) accompanied by a certificate issued by
the proper diplomatic or consular officer in the Philippine foreign service
stationed in the foreign country in which the record is kept and (b)
authenticated by the seal of his office.
One who merely exercises one;s rights does no actionable injury and
cannot be held liable for damages.
Dionela filed a complaint for damages against RCPI alleging that the
defamatory words on the telegram sent to him not only wounded his
feelings but also caused him undue embarrassment and affected his
business as well as because other people have come to know of said
defamatory words. There is a clear case of breach of contract by the
petitioner in adding extraneous and libelous matters in the message sent
to Dionela.
6
Where a man’s promise to marry is in fact the proximate cause of the
acceptance of his love by a woman and his representation to fulfill that
promise thereafter becomes the proximate cause of the giving of herself
unto him a sexual congress, proof that he had, in reality, no intention of
marrying her and that the promise was only a subtle scheme or deceptive
device to entice or inveigle her to accept him and to obtain her consent to
the sexual act, could justify the award of damages pursuant to article 21
of the new civil code not because of such promise to marry but because
of the fraud and deceit behind it and the wilful injury to her honor and
reputation which followed thereafter.
Figueroa vs. Barranco, SBC Case NO. 519. July 31, 1997 276 5CRA
445 - His engaging in premarital sexual relations with complainant and
promises to marry suggests a doubtful moral character on his part but
the same does not constitute grossly immoral conduct.
University of the East vs Jader, G.R. NO. 132344, Feb. 7, 2000 325
SCRA 805
A law student was allowed to graduate by his school with a failing grade
but was later on prohibited by the said school to take the bar exams. The
negligent act of a professor who fails to observe the rules of the school,
for instance by not promptly submitting a student's grade, is not only
imputable to the professor but is an act of the school, being his
employer.
UP v. Philab, G.R. NO. 152411, Sept. 29, 2004 439 SCRA 467
Whether or not UP is liable to pay PHILAB considering that it is only a
donee of FEMF, FEMF being the one which funded the project, and
despite being a donee, unjust enrichment still applies to UP. In order
that accion in rem verso may prosper, the essential elements must be
present: (1) that the defendant has been enriched, (2) that the plaintiff
has suffered a loss, (3) that the enrichment of the defendant is without
just or legal ground, and (4) that the plaintiff has no other action
based on contract, quasi-contract, crime or quasi-delict.
Beumer vs. Amores, G.R. NO. 195670, Dec. 03, 2012 686 SCRA 770
An action for recovery of what has been paid without just cause has been
designated as an accion in rem verso. This provision does not apply if, as
in this case, the action is proscribed by the Constitution or by the
application of the pari delicto doctrine.
7
Padalhin vs. Laviña, G.R. NO. 183026,Nov. 14, 2012 685 SCRA 549
Civil Personality; Birth; Death; Arts 37, 38, 39 40, 41, 42; 390, 391,
712, 777 NCC; Art. 41, 96 &124, 99 & 126, 142 FC
8
Marriage
Our Family Law is based on the policy that marriage is not a mere
contract, but a social institution in which the State is vitally interested.
It is the union (and inviolable social institution) of one man with one
woman for the reciprocal blessings of a domestic home life, and for the
birth, rearing, and education of children. In one case, the Supreme Court
ruled that marriage is also a new relation in the maintenance of which
the general public is interested.
The offer of the accused to marry the victim establishes his guilt. As a
rule in rape cases, an offer of marriage is an admission of guilt
Appellant’s own admission that she was married to the victim was a
confirmation of the semper praesumitur matrimonio and the presumption
that a man and a woman so deporting themselves as husband and wife
had verily acted into a lawful contract of marriage.
9
The best documentary evidence of a marriage is the marriage contract. A
marriage contract renders unnecessary the presumption that a man and
a woman deporting themselves as husband and wife have entered into a
lawful contract of marriage.
The mere fact that no record of the marriage exists in the registry of
marriage does not invalidate said marriage, as long as in the celebration
thereof, all requisites for its validity are present. The forwarding of a copy
of the marriage certificate to the registry is not one of said requisites.
Trinidad vs. Court of Appeals, et. al., 289 SCRA 188 (1998)
The Supreme Court held that the following may be presented as proof of
marriage: (a) testimony of a witness to the matrimony; (b) the couple’s
public and open cohabitation as husband and wife after the alleged
wedlock; (c) the birth and baptismal certificate of children born during
such union; and (d) the mention of such nuptial in subsequent
documents.
The law favors the validity of marriage because the State is interested in
the preservation of the family and sanctity of the family is a matter of
constitutional concern. The burden of proof to show the nullity of the
marriage rests upon the party seeking its nullity
10
The birth certificate of Sylvia was presented to prove the marriage
between Isabel and John despite the absence of the marriage certificate.
The court held that the birth certificate may serve as evidence to prove
the marriage between Isabel and John , as it contains the following
notable entries: (a) that Isabel and John Desantis were "married" and (b)
that Sylvia is their "legitimate" child.
A lawyer was married three times, while the first marriage was still
subsisting, his marriage contracts as certified by the NSO was presented
in the disbarment proceeding to prove his subsequent marriages. For
purposes of disbarment proceeding, these marriage contracts bearing the
name of respondent are competent and convincing evidence proving that
he committed bigamy.
Cariño v. Cariño, G.R. NO. 132529 , Feb. 02, 2001 351 SCRA 127
Requirements of Marriage
Essential requisite
Formal Requisite
11
considered mere irregularities that do not affect the validity of the
marriage
Abbas v. Abbas, G.R. NO. 183896 , Jan. 30, 2013 689 SCRA 636
The Municipal Civil Registrar of Carmona, Cavite, where the marriage
license of Gloria and Syed was allegedly issued, issued a certification to
the effect that no such marriage license for Gloria and Syed was issued,
and that the serial number of the marriage license pertained to another
couple, Arlindo Getalado and Myra Mabilangan. The fact that the names
in said license do not correspond to those of Gloria and Syed does not
overturn the presumption that the registrar conducted a diligent search
of the records of her office.
Sy v. CA, G.R. NO. 127263 , Apr. 12, 2000 330 SCRA 550
The affidavit is for the purpose of proving the basis for exemption from
the marriage license. Even if there is failure on the part of the
solemnizing officer to execute the necessary affidavit, such irregularity
will not invalidate the marriage for the affidavit is not being required of
the parties.
12
Borja-Manzano vs. Sanchez, 354 SCRA 1, 5 (2001)
Marriage Ceremony
The failure of the solemnizing officer to ask the parties whether they take
each other as husband and wife cannot be regarded as a fatal omission if
the parties nonetheless signed the marriage contract in the presence of
the solemnizing officer. A declaration of word of mouth of what the
parties and already stated in writing would be a mere repetition, so that
its omission should not be regarded as fatal.
13
Persons who may solemnize Marriages
Arañes v. Occiano, A.M. 02-1390 , April 11, 2002 380 SCRA 402
The court does not accept the arguments of the respondent judges that
the ascertainment of the validity of the marriage license is beyond the
scope of the duty of a solemnizing officer especially when there are
glaring pieces of evidence that point to the contrary. As correctly
observed by the OCA, the presumption of regularity accorded to a
marriage license disappears the moment the marriage documents do not
appear regular on its face.
Compare the ruling of the court in the case of Cariño v. Cariño and
OCA vs. J. Necessario et al as to the duty of the solemnizing officer
to examine the validity of marriage license.
Rep. v. Orbecido, G.R. NO. 154380, Oct. 05, 2005 472 SCRA 114 –
Whether or not, a Filipino spouse of an alien, who is a Filipino at the
time of marriage, remarry after the latter acquires a foreign divorce that
allows her to remarry. The reckoning point is not the citizenship of the
parties at the time of the celebration of the marriage, but their
citizenship at the time a valid divorce is obtained abroad by the alien
spouse capacitating the latter to remarry.
Corpuz v. Sto. Tomas, G.R. NO. 186571, Aug. 11, 2010 628 SCRA
266
14
the law and the submission of the decree by themselves do not ipso facto
authorize the decree’s registration.
Valid
Voidable
Void
Terminable
Others Classifications
Legal Separation
Separation in Fact
Ablaza v. Republic, G.R. NO. 158298 , Aug. 11, 2010 628 SCRA 27
Indeed, a brother like the petitioner, albeit not a compulsory heir under
the laws of succession, has the right to succeed to the estate of a
deceased brother under the conditions stated in Article 1001 and Article
1003 of the Civil Code Necessarily, therefore, the right of the petitioner to
bring the action hinges upon a prior determination of whether
Cresenciano had any descendants, ascendants, or children (legitimate or
illegitimate), and of whether the petitioner was the late Cresenciano’s
surviving heir. Such prior determination must be made by the trial court,
for the inquiry thereon involves questions of fact.
15
Juliano-Llave v. Republic, G.R. NO. 169766 , Mar. 30, 2011 646
SCRA 637
The marriage between the late Sen. Tamano and Zorayda was celebrated
in 1958, solemnized under civil and Muslim rites. The only law in force
governing marriage relationships between Muslims and non-Muslims
alike was the Civil Code of 1950, under the provisions of which only one
marriage can exist at any given time.
Carlos v. Sandoval G.R. NO. 179922 , Dec. 16, 2008 574 SCRA 116
Bolos v. Bolos, G.R. NO. 186400 , Oct. 20, 2010 634 SCRA 429
Article 36, FC; AM 02-11-10 SC; See also Articles 48, 68-71, 220-221
& 225 FC
The Committee did not give any examples of psychological incapacity for
fear that the giving of examples would limit the applicability of the
provision under the principle of ejusdem generis. Rather, the Committee
would like the judge to interpret the provision on a case-to-case basis,
guided by experience, the findings of experts and researchers in
psychological disciplines, and by decisions of church tribunals which,
although not binding on the civil courts, may be given persuasive effect
since the provision was taken from Canon Law.”
16
Santos v. Court of Appeals, 240 SCRA 20 (1995)
The burden of proof to show the nullity of the marriage belongs to the
plaintiff. Any doubt should be resolved in favor of the existence and
continuation of the marriage and against its dissolution and nullity.
In this case, there was no sexual contact between the parties since their
marriage on May 22, 1988 up to Mar. 15, 1989 or for almost a year. The
senseless and protracted refusal of one of the parties of sexual
cooperation for the procreation of children is equivalent to psychological
incapacity.
Marable v. Marable G.R. NO. 178741, Jan. 17, 2011 639 SCRA 557
The appellate court correctly ruled that the report of Dr. Tayag failed to
explain the root cause of petitioner’s alleged psychological incapacity.
The evaluation of Dr. Tayag merely made a general conclusion that
17
petitioner is suffering from an Anti-social Personality Disorder but there
was no factual basis stated for the finding that petitioner is a socially
deviant person, rebellious, impulsive, self-centered and deceitful.
Ochosa v. Alano, G.R. NO. 167459 , Jan. 26, 2011 640 SCRA 517
In this case the court proved that respondent was the sex partner of
many military officials. In view of the foregoing, the badges of Bona’s
alleged psychological incapacity, i.e., her sexual infidelity and
abandonment, can only be convincingly traced to the period of time after
her marriage to Jose and not to the inception of the said marriage.
Yambao v. REP., G.R. NO. 184063 , Jan. 24, 2011 640 SCRA 355
Rep. v. Galang G.R. NO. 168335 , Jun. 6, 2011 650 SCRA 524
Aurelio v. Aurelio, G.R. NO. 175367 , Jun. 6, 2011 650 SCRA 561
Kalaw v. Fernandez, G.R. NO. 166357 , Sept 19, 2011 657 SCRA 822
18
infidelity per se is a G.R.ound for legal separation, but it does not
necessarily constitute psychological incapacity.
Toring v. Toring, G.R. NO. 165321 , Aug. 03, 2010 626 SCRA 389
In this case, the totality of evidence presented by Noel was not sufficient
to sustain a finding that Maribel was psychologically incapacitated.
Noel’s evidence merely established that Maribel refused to have sexual
intercourse with him after their marriage, and that she left him after
their quarrel when he confronted her about her alleged miscarriage.
In the present case, the petitioner’s testimony failed to establish that the
respondent’s condition is a manifestation of a disordered personality
rooted on some incapacitating or debilitating psychological condition that
makes her completely unable to discharge the essential marital
obligations. If at all, the petitioner merely showed that the respondent
had some personality defects that showed their manifestation during the
marriage; his testimony sorely lacked details necessary to establish that
the respondent’s defects existed at the inception of the marriage.
19
Republic v. Encelan, G.R. NO. 170022 , Jan. 9, 2013 688 SCRA 215
Evidentiary requirement
The award of moral damages should be predicated, not on the mere act
of entering into the marriage, but on specific evidence that it was done
deliberately and with malice by a party who had knowledge of his or her
disability and yet willfully concealed the same.
Prescription
Niñal v. Bayadog G.R. NO. 133778=, Mar. 14, 2000 328 SCRA 122
Ablaza v. Republic, G.R. NO. 158298 , Aug. 11, 2010 628 SCRA 27
20
Other than for purposes of remarriage, no judicial action is necessary to
declare a marriage an absolute nullity. For other purposes, such as but
not limited to determination of heirship, legitimacy or illegitimacy of a
child, settlement of estate, dissolution of property regime, or a criminal
case for that matter, the court may pass upon the validity of marriage
even in a suit not directly instituted to question the same so long as it is
essential to the determination of the case.
Morigo v. People, G.R. NO. 145226, Feb. 06, 2004 422 SCRA 376
The existence and the validity of the first marriage being an essential
element of the crime of bigamy, it is but logical that a conviction for said
offense cannot be sustained where there is no first marriage to speak of.
Jarillo v.People, G.R. NO.164435 , Sept. 29, 2009 601 SCRA 236
Tenebro v. CA, G.R. NO. 150758 , Feb. 18, 2004 423 SCRA 272
Antone v. Beronilla, G.R. NO.183824, Dec. 08, 2010 637 SCRA 615
21
To conclude, the issue on the declaration of nullity of the marriage
between petitioner and respondent only after the latter contracted the
subsequent marriage is, therefore, immaterial for the purpose of
establishing that the facts alleged in the information for Bigamy does not
constitute an offense. Following the same rationale, neither may such
defense be interposed by the respondent in his motion to quash by way
of exception to the established rule that facts contrary to the allegations
in the information are matters of defense which may be raised only
during the presentation of evidence.
Teves v. People, G.R. NO. 188775 , Aug 24, 2011 656 SCRA 307
Armas v. Calisterio, G.R. NO.136467, Apr. 06, 2000 330 SCRA 201
Whether or not, the rule under the FC, that a judicial declaration of
presumptive death of the absent spouse is necessary before the present
spouse can remarry, has a retroactive effect. A judicial declaration of
absence of the absentee spouse is not necessary as long as the
prescribed period of absence is met. It is equally noteworthy that the
marriage in these exceptional cases are, by the explicit mandate of Article
22
83, to be deemed valid "until declared null and void by a competent
court."
Rep. v. Nolasco, G.R. NO. 94053 , Mar. 17, 1993 220 SCRA 20
In the case at bar, the Court considers that the investigation allegedly
conducted by respondent in his attempt to ascertain Janet Monica
Parker's whereabouts is too sketchy to form the basis of a reasonable or
well-founded belief that she was already dead. When he arrived in San
Jose, Antique after learning of Janet Monica's departure, instead of
seeking the help of local authorities or of the British Embassy, he
secured another seaman's contract and went to London, a vast city of
many millions of inhabitants, to look for her there.
Retroactive application of Art. 41
Valdez v. Republic, G.R. NO.180863 , Sept. 08, 2009 598 SCRA 646
Rep. v. Tango, G.R. NO.161062 , Jul. 31, 2009 594 SCRA 560
Even if the spouse present has a well-founded belief that the absent
spouse was already dead, a summary proceeding for the declaration of
presumptive death is necessary in order to contract a subsequent
marriage, a mandatory requirement which has been precisely
incorporated into the Family Code to discourage subsequent marriages
where it is not proven that the previous marriage has been dissolved or a
23
missing spouse is factually or presumptively dead, in accordance with
pertinent provisions of law.
Armas v. Calisterio, G.R. NO.136467, Apr. 06, 2000 330 SCRA 201
Definition
A voidable marriage is considered valid and produces all its civil effects
until it is set aside by final judgment of a competent court in an action
for annulment. The terms “annul” and “null and void” have different legal
connotations and implications. Annul means to reduce to nothing; to
nullify; to abolish; to do away with; whereas, null and void is something
that does not exist from the beginning.
24
Characteristics of Voidable Marriages
G.R.ounds
The prosecuting attorney or fiscal may oppose the application for legal
separation or annulment (or declaration of nullity of marriages) through
the presentation of his own evidence, if in his opinion, the proof adduced
is dubious and fabricated.
Concept
G.R.ounds
Ong v. Ong, G.R. NO. 153206 , Oct. 23, 2006 505 SCRA 76
Also without merit is the argument of William that since Lucita has
abandoned the family, a decree of legal separation should not be granted,
following Art. 56, par. (4) of the Family Code which provides that legal
separation shall be denied when both parties have given ground for legal
separation. The abandonment referred to by the Family Code is
abandonment without justifiable cause for more than one year.
Manzano vs. Sanchez, A.M. NO.00-1329, Mar. 08, 2001 354 SCRA 1
The fact that Manzano and Payao had been living apart from their
respective spouses for a long time already is immaterial. Article 63(1) of
the Family Code allows spouses who have obtained a decree of legal
separation to live separately from each other, but in such a case the
marriage bonds are not severed.
SSS v. Aguas, G.R. NO. 165546 , Feb. 27, 2006 483 SCRA 383
25
On the claims of Rosanna, it bears stressing that for her to qualify as a
primary beneficiary, she must prove that she was "the legitimate spouse
dependent for support from the employee, whether one is actually
dependent for support upon the other is something that has to be shown;
it cannot be presumed from the fact of marriage alone. The obvious
conclusion then is that a wife who is already separated de facto from her
husband cannot be said to be "dependent for support" upon the
husband, absent any showing to the contrary.
Pacete vs. Carriaga, Jr., G.R. NO. L-53880, March 17, 1994.
In this interim, the court should take steps toward getting the parties to
reconcile.
During this period, the court where the action is pending shall remain
passive and is precluded from hearing the suit.
Bañez vs. Bañez, G.R. NO. 132592 , Jan. 23, 2002 374 SCRA 340
The effects of legal separation, such as entitlement to live separately,
dissolution and liquidation of the absolute community or conjugal
partnership, and custody of the minor children, follow from the decree of
legal separation. They are not separate or distinct matters that may be
resolved by the court and become final prior to or apart from the decree
of legal separation.
Pacete vs. Carriaga, G.R. NO. 53880, Mar. 17, 1994 231 SCRA 321
Quiao vs. Quiao, G.R. NO.176556 , July 4, 2012 675 SCRA 642
26
When the trial court issued its order dated November 8, 2006, it held
that although the Decision dated October 10, 2005 has become final and
executory, it may still consider the Motion for Clarification because the
petitioner simply wanted to clarify the meaning of "net profit earned."
Ilusorio v. Bildner, G.R. NO. 139789 , May 12, 200 332 SCRA 169
Marital rights including coverture and living in conjugal dwelling may not
be enforced by the extra-ordinary writ of habeas corpus. With his full
mental capacity coupled with the right of choice, Potenciano Ilusorio may
not be the subject of visitation rights against his free choice. Otherwise,
we will deprive him of his right to privacy.
Under Article 117 of the Civil Code (now Article 73 of the Family Code),
the wife may exercise any profession, occupation or engage in business
without the consent of the husband. In the instant case, we are
convinced that it was only petitioner Nancy Go who entered into the
contract with private respondent.
Concept
Marriage settlement
27
The following donations are not donations propter nuptias: (1) those made
in favor of the spouses after the celebration of marriage; (2) those
executed in favor of the future spouses but not in consideration of the
marriage; and (3) those Ggranted to persons other than the spouses even
though they may be founded on the marriage
Even if the donation proper nuptias is void for failure to comply with
formal requisites, it could still constitute as legal basis for adverse
possession.
Valencia v. Locquiao, G.R. NO. 122134, Oct. 3, 200 412 SCRA 600
Under the Old Civil Code, donations propter nuptias must be made in a
public instrument in which the property donated must be specifically
described. However, Article 1330 of the same Code provides that
"acceptance is not necessary to the validity of such gifts". In
other words, the celebration of the marriage between the beneficiary
couple, in tandem with compliance with the prescribed form, was enough
to effectuate the donation propter nuptias under the Old Civil Code.
Agapay vs. Palang, G.R. NO. 116668 , Jul. 28, 1997 276 SCRA 340
Article 87 of the Family Code expressly provides that the prohibition
against donations between spouses now applies to donations between
persons living together as husband and wife without a valid marriage, for
otherwise, the condition of those who incurred guilt would turn out to be
better than those in legal union.
Arcaba vs. Batocael, G.R. NO.146683 , Nov.22, 2001 370 SCRA 414
Respondents having proven by a preponderance of evidence that Cirila
and Francisco lived together as husband and wife without a valid
marriage, the inescapable conclusion is that the donation made by
Francisco in favor of Cirila is void under Art. 87 of the Family Code.
28
CHAPTER 3. SYSTEM OF ABSOLUTE COMMUNITY (Articles 88-104);
R.A. 8369
Sec. 3, Rule 87
29
Section 4. Ownership, Administration, Enjoyment & Disposition of
the Community Property (Articles 96-98)
Sec. 3, Rule 87
Concept
Homeowners Savings & Loan Bank vs. Dailo, 453 SCRA 283, 290
(2005)
Commencement of CPG
In this provision, net profits "shall be the increase in value between the
market value of the community property at the time of the celebration of
the marriage and the market value at the time of its dissolution."
General Provisions
Dewara v. Lamela G.R. NO. 179010, Apr. 11, 2011 647 SCRA 483
De Leon v. De Leon G.R. NO. 185063 , Jul. 23, 2009 593 SCRA 768 –
In the case at bar, ownership over what was once a PHHC lot and
covered by the PHHC-Bonifacio Conditional Contract to Sell was only
30
transferred during the marriage of Bonifacio and Anita. Evidently, title to
the property in question only passed to Bonifacio after he had fully paid
the purchase price on June 22, 1970.
Villegas v. Lingan G.R. NO. 153839 , Jun. 29, 2007 526 SCRA 63
For the presumption to apply, it is not even necessary to prove that the
property was acquired with funds of the partnership. In fact, even when
the manner in which the property was acquired does not appear, the
presumption applies and it will be considered conjugal property.
The party who invokes it must first prove that the property was acquired
during the marriage. Proof of acquisition during the coverture is a
condition sine qua non to the operation of the presumption in favor of
the conjugal partnership.
Pisueña vs. Heirs of Petra Unating, G.R. NO. 132803 , Aug. 31, 1999
313 SCRA 384
The words "married to" were merely descriptive of Petra Unating's status
at the time the lot was awarded and registered in her name. Since Petra
Unating did not leave any other property, will or debt upon her demise in
1948, the property in question was thus inherited by her children, Felix
and Catalina Villar; and her husband, Aquilino Villar.
31
Improvement on Separate Property
Determination of Ownership
Ferrer v. Ferrer, G.R. NO.166496 , Nov. 29, 2006 508 SCRA 570
Alipio vs. Court of Appeals, G.R. NO. 134100, Sept. 29, 2000.
Homeowner’s Savings & Loan Bank vs. Dailo, 453 SCRA 283 (2005)
The burden of proof that the debt was contracted for the benefit of the
conjugal partnership of gains lies with the creditor-party litigant claiming
as such.
Ching vs. CA, G.R. NO. 124642 , Feb. 23, 2004 423 SCRA 356
The barefaced fact that the shares of stocks were registered in the
corporate books of Citycorp Investment Philippines solely in the name of
the petitioner-husband does not constitute proof that the petitioner-
husband, not the conjugal partnership, owned the same.
Carlos vs. Abelardo, G.R. NO. 146504 , Apr. 09, 2002 380 SCRA 361
32
redounded to the benefit of the family. Hence, defendant-husband and
defendant-wife are jointly and severally liable in the payment of the loan.
SBTC v. Mar Tierra Corp., G.R. NO. 143382 , Nov. 29, 2006 508
SCRA 419
Ros v. PNB Laoag Br., G.R. NO.170166, Apr. 06, 2011 647 SCRA 334
Pana v. Heirs of Jose Juanite G.R. NO. 164201,Dec. 10, 2012 687
SCRA 414
Tinitigan vs. Tinitigan, Sr., NO. L- 45418, October 30, 1980, 100
SCRA 619.
A husband may sell property belonging to the conjugal partnership even
without the consent of the wife if the sale is necessary to answer for a big
conjugal liability which might endanger the family’s economic standing.
33
This is one instance where the wife’s consent is not required and,
impliedly, no judicial intervention is necessary.
Spouses Guiang vs. Court of Appeals, G.R. No. 125172. June 26,
1998,
Roxas vs. CA G.R. NO. 92245, Jun. 26, 1991 198 SCRA 541
Guiang vs. CA, G.R. NO. 125172, Jun. 26, 1998 291 SCRA 372
The sale of a conjugal property requires the consent of both the husband
and the wife. The absence of the consent of one renders the sale null and
void, while the vitiation thereof makes it merely voidable. Only in the
latter case can ratification cure the defect.
Jader-Manalo vs. Camaisa, G.R. NO. 147978, Jan. 23, 2002 374
SCRA 498
Respondent Norma Camaisa admittedly did not give her written consent
to the sale. Even G.R.anting that respondent Norma actively participated
in negotiating for the sale of the subject properties, which she denied,
her written consent to the sale is required by law for its validity.
Significantly, petitioner herself admits that Norma refused to sign the
contracts to sell.
Uy vs. CA, G.R. NO. 10955, Nov. 29, 2000 346 SCRA 246
34
consenting spouse is incapacitated or incompetent to give consent. In
this case, the trial court found that the subject spouse "is an
incompetent" who was in comatose.
Ravina v. Villa Abrille G.R. NO. 160708, Oct. 16, 2009 604 SCRA
120
De la Cruz v. Segovia, G.R. NO. 149801, Jun. 26, 2008 555 SCRA
453
While Florinda’s husband did not affix his signature to the above-
mentioned Agreement, we find no ground to disturb the uniform findings
of the trial court and appellate court that Renato, by his actuations,
agreed and gave his conformity to the Agreement. As found by the courts
below, Renato’s consent to the Agreement was drawn from the fact that
he was present at the time it was signed by the sisters and their
witnesses; he had knowledge of the Agreement as it was presented to him
for his signature, although he did not sign the same because his wife
Florinda insisted that her signature already carried that of her husband;
Renato witnessed the fact that Leonila contributed her hard earned
savings in the amount of P36,000.00 to complete their share in the
purchase price of the properties in question in the total amount of
P180,000.00.
MBTC v. Pascual, G.R. NO. 163744, Feb. 29, 2008 547 SCRA 246
Termination of Conjugal Property Regime does not ipso facto End the
Nature of Conjugal Ownership. While the declared nullity of marriage of
Nicholson and Florencia severed their marital bond and dissolved the
conjugal partnership, the character of the properties acquired before
such declaration continues to subsist as conjugal properties until and
after the liquidation and partition of the partnership.
Diño v. Diño, G.R. NO. 178044, Jan. 19, 2011 640 SCRA 178
35
has no basis because Section 19(1) of the Rule does not apply to cases
governed under Articles 147 and 148 of the Family Code.
Agtarap v. Agtarap, G.R. NO. 177099, Jun. 8, 2011 651 SCRA 455
We hold that the general rule does not apply to the instant case
considering that the parties are all heirs of Joaquin and that no rights of
third parties will be impaired by the resolution of the ownership issue.
More importantly, the determination of whether the subject properties
are conjugal is but collateral to the probate court’s jurisdiction to settle
the estate of Joaquin.
There being no dispute that Protacio, Sr. and Marta were married prior to
the effectivity of the Family Code on August 3, 1988, their property
relation was properly characterized as one of conjugal partnership
governed by the Civil Code. Upon Marta’s death in 1987, the conjugal
partnership was dissolved, pursuant to Article 175 (1) of the Civil Code,
and an implied ordinary co-ownership ensued among Protacio, Sr. and
the other heirs of Marta with respect to her share in the assets of the
conjugal partnership pending a liquidation following its liquidation.
36
Voluntary Separation of Property
Maquilan v. Maquilan, G.R. NO. 155409, Jun. 08, 2007 524 SCRA
166 –
(Articles 147-148)
Valdes vs. RTC Br. 102, QC G.R. NO. 122749, Jul. 31, 1996 260
SCRA 221
Mallilin, Jr. vs. Castillo, G.R. NO. 136803, Jun. 16, 2000 333 SCRA
628 –
Diño v. Diño, G.R. NO. 178044,Jan. 19, 2011 640 SCRA 178
37
are the rules on co-ownership. In Valdes, the Court ruled that the
property relations of parties in a void marriage during the period of
cohabitation is governed either by Article 147 or Article 148 of the Family
Code. The rules on co-ownership apply and the properties of the spouses
should be liquidated in accordance with the Civil Code provisions on co-
ownership. Under Article 496 of the Civil Code, partition may be made by
aG.R.eement between the parties or by judicial proceedings. It is not
necessary to liquidate the properties of the spouses in the same
proceeding for declaration of nullity of marriage.
Lacbayan v. Samoy, G.R. NO. 165427, Mar. 21, 2011 645 SCRA 677
Cariño v. Cariño, G.R. NO. 132529, Feb. 02, 2001 351 SCRA 127
As to the property regime of petitioner Susan Nicdao and the deceased,
Article 147 of the Family Code governs. This article applies to unions of
parties who are legally capacitated and not barred by any impediment to
contract marriage, but whose marriage is nonetheless void for other
reasons, like the absence of a marriage license
San Luis v. San Luis G.R. NO. 133743, Feb. 06, 2007 514 SCRA 294
38
Tuason vs. CA, 256 SCRA 158 (1996)
Our family law is based on the policy that marriage is not a mere
contract but a social institution in which the state is vitally interested.
Hontiveros vs. RTC Iloilo City, G.R. NO. 125465, Jun. 29, 1999 309
SCRA 340
Religious relationship and relationship by affinity are not given any legal
effect in this jurisdiction. Consequently, private respondent Ayson, who
is described in the complaint as the spouse of respondent Hontiveros,
and petitioner Maria Hontiveros, who is admittedly the spouse of
petitioner Augusto Hontiveros, are considered strangers to the
Hontiveros family, for purposes of Art. 151.
Indeed, "there is no affinity between the blood relatives of one spouse and
the blood relatives of the other. A husband is related by affinity to his
wife’s brother, but not to the wife of his wife’s brother. There is no affinity
between the husband’s brother and the wife’s sister; this is called
affinitas affinitatis."
39
which it is situated, which confers upon a particular family the right to
enjoy such properties, which must remain with the person constituting it
and his heirs.
Taneo vs. Court of Appeals, G.R. NO. 108562, Mar. 09, 1999 304
SCRA 308
By the very definition of the law that the “family home is the dwelling
house where a person and his family resides and the land on which it is
situated,” it is understood that the house should be constructed on a
land not belonging to another.
Arriola v. Arriola, G.R. NO. 177703, Jan. 28, 2008 542 SCRA 666
Furthermore, Articles 152 and 153 specifically extend the scope of the
family home not just to the dwelling structure in which the family resides
but also to the lot on which it stands. Thus, applying these concepts, the
subject house as well as the specific portion of the subject land on which
it stands are deemed constituted as a family home by the deceased and
petitioner Vilma from the moment they began occupying the same as a
family residence 20 years back
Cabang v. Basay, G.R. NO. 180587, Mar. 20, 2009 582 SCRA 172
The family home must be established on the properties of (a) the absolute
community, or (b) the conjugal partnership, or (c) the exclusive property
of either spouse with the consent of the other. It cannot be established
40
on property held in co-ownership with third persons. However, it can be
established partly on community property, or conjugal property and
partly on the exclusive property of either spouse with the consent of the
latter.
Olivia De Mesa v. Acero, G.R. NO. 185064 Jan. 16, 2012 663 SCRA
40
The family home’s exemption from execution must be set up and proved
to the Sheriff before the sale of the property at public auction. The
petitioners now are barred from raising the same. Failure to do so estop
them from later claiming the said exemption.
Articles 152 and 153 of the Family Code do not have a retroactive effect
such that all existing family residences are deemed to have been
constituted as family homes at the time of their occupation prior to the
effectivity of the Family Code and are exempt from execution for the
payment of obligations incurred before the effectivity of the Family Code.
Types of Filiation
Status of Children
Presumption of Legitimacy
Benitez-Badua vs. CA G.R. NO. 105625, Jan. 24, 1994 229 SCRA 468
Article 170 of the Family Code is inapplicable to this case because this is
not an action to impugn the legitimacy of a child, but an action of the
private respondents to claim their inheritance as legal heirs of their
childless deceased aunt. They do not claim that petitioner Violeta
Cabatbat Lim is an illegitimate child of the deceased, but that she is not
the decedent's child at all.
41
Liyao vs. Tanhoti-Liyao,G.R. NO. 138961, Mar. 07, 2002 378 SCRA
563
The grounds for impugning the legitimacy of the child mentioned in
Article 255 of the Civil Code may only be invoked by the husband, or in
proper cases, his heirs under the conditions set forth under Article 262
of the Civil Code.
Labagla vs. Santiago, G.R. NO. 132305, Dec. 04, 2001 371 SCRA 360
A baptismal certificate, a private document, is not conclusive proof of
filiation. More so are the entries made in an income tax return, which
only shows that income tax has been paid and the amount thereof.
In this case the husband and the wife continued to live in the same
province after their alleged separation, the Court did not discount the
possibility of physical access to each other considering their proximity to
each other and considering further that the wife still visited and
recuperated in her mother’s house where her spouse resided with their
children.
The court held that just because tuberculosis is advanced in a man does
not necessarily mean that he is incapable of sexual intercourse. There
are cases where persons suffering from tuberculosis can do the carnal
act even in the most crucial stage of health because then they seemed to
be more inclined to sexual intercourse.
Solinap vs. Locsin Jr. G.R. NO. 146737 , Dec. 10, 2001 371 SCRA
711
42
petitioner to the deceased. A birth certificate offers only prima facie
evidence of filiation and may be refuted by contrary evidence.
Verceles v. Posada, G.R. NO.159785, Apr. 27, 2007 522 SCRA 518
The court held that the due recognition of an illegitimate child in a record
of birth, a will, a statement before a court of record, or in any authentic
writing is, in itself, a consummated act of acknowledgement of the child,
and no further court action is required
Lucas v. Lucas, G.R. NO. 190710, Jun. 6, 2011 650 SCRA 667
Rodriguez vs. CA, G.R. NO. 85723, Jun. 19, 1995 245 SCRA 150
When a recognition has been made by one parent, the name of the other
parent may be revealed in an action by the child to compel such other
parent to recognize him also.
Heirs of Cabais vs. CA, G.R. NO. 106314-15,Oct. 08, 1999 316 SCRA
338
Cenido vs. Apacionado, G.R .NO. 132474, Nov. 19, 1999 318 SCRA
688
Under the law, this statement must be made personally by the parent
himself or herself, not by any brother, sister or relative; after all, the
concept of recognition speaks of a voluntary declaration by the parent, or
if the parent refuses, by judicial authority, to establish the paternity or
maternity of children born outside wedlock.
43
Tayag v. Tayag-Gallor, G.R. NO. 174680, Mar. 24, 2008 549 SCRA 68
Puno v. Puno Ent. Inc., G.R. NO. 177066, Sept. 11, 2009 599 SCRA
585
Gotardo v. Buling, G.R. NO. 165166, Aug. 15, 2012 678 SCRA 436
We have held that such other proof of one's filiation may be a "baptismal
certificate, a judicial admission, a family bible in which [his] name has
been entered, common reputation respecting his pediG.R.ee, admission
by silence, the testimonies of witnesses, and other kinds of proof
admissible under Rule 130 of the Rules of Court." In this case, the
respondent established a prima facie case that the petitioner is the
putative father of Gliffze through testimony that she had been sexually
involved only with one man, the petitioner, at the time of her conception.
Rodulfo corroborated her testimony that the petitioner and the
respondent had intimate relationship.
Lucas v. Lucas, G.R . NO. 190710, Jun. 6, 2011 650 SCRA 667
44
CHAPTER 3. ILLEGITIMATE CHILDREN (Articles 175-176)
Tonog vs. CA, G.R. NO. 122906 , Feb. 07, 2002 376 SCRA 523
In the case at bar, bearing in mind that the welfare of the said minor as
the controlling factor, the appellate court did not err in allowing her
father to retain in the meantime parental custody over her. Meanwhile,
the child should not be wrenched from her familiar surroundings, and
thrust into a strange environment away from the people and places to
which she had apparently formed an attachment.
Guy v. CA, G.R. NO. 163707, Sept. 15, 2006 502 SCRA 151
De La Cruz v. Gracia G.R. NO. 177728, Jul. 31, 2009 594 SCRA 648
Where the private handwritten instrument is the lone piece of evidence
submitted to prove filiation, there should be strict compliance with the
requirement that the same must be signed by the acknowledging parent.
Where the private handwritten instrument is accompanied by other
relevant and competent evidence, it suffices that the claim of filiation
therein be shown to have been made and handwritten by the
acknowledging parent as it is merely corroborative of such other
evidence.
Uy v. Chu, G.R. NO. 183965, Sept. 18, 2009 600 SCRA 806
It is settled, then, in law and jurisprudence, that the status and filiation
of a child cannot be compromised. Public policy demands that there be
no compromise on the status and filiation of a child. Paternity and
filiation or the lack of the same, is a relationship that must be judicially
established, and it is for the Court to declare its existence or absence. It
cannot be left to the will or aG.R.eement of the parties.
45
See RA 9858
Legitimation
Abadilla vs. Tabiliran, Jr. A.M NO. MTJ-92-716, Oct. 25, 1995 249
SCRA 447
Whether or not, a child born out of wedlock, by parents who have a legal
impediment to marry each other, can be legitimated. As a lawyer and a
judge, respondent ought to know that, despite his subsequent marriage
to Priscilla, these three children cannot be legitimated nor in any way be
considered legitimate since at the time they were born, there was an
existing valid marriage between respondent and his first wife, Teresita B.
Tabiliran.
Republic vs. Vergara, G.R. NO. 95551, Mar. 20, 1997 270 SCRA 206
The law here does not provide for an alien who is married to a former
Filipino citizen seeking to adopt jointly with his or her spouse a relative
46
by consanguinity, as an exception to the general rule that aliens may not
adopt.
Rosalina Dye cannot, on her own, adopt her brother and sister for the
law mandates joint adoption by husband and wife, subject to exceptions.
Republic vs. Miller, G.R. NO.125932, Apr. 21, 1999 306 5CRA 183
An alien qualified to adopt under the Child and Youth Welfare Code,
which was in force at the time of the filing of the petition, acquired a
vested right which could not be affected by the subsequent enactment of
a new law disqualifying him.
Republic vs. Toledano, G.R. NO.94147, Jun. 08, 1994 233 SCRA 9
The Family Code reiterated the rule by requiring that husband and wife
"must" jointly adopt, except in the cases mentioned before. Under the
said new law, joint adoption by husband and wife is mandatory
Cang vs. CA, G.R. NO.105308, Sept. 25, 1998 296 SCRA 128
The filing of a case for dissolution of the marriage between petitioner and
Olario is of no moment. It is not equivalent to a decree of dissolution of
marriage. Until and unless there is a judicial decree for the dissolution of
the marriage between petitioner and Olario, the marriage still subsists.
That being the case, joint adoption by the husband and the wife is
required.
Republic vs. CA & Bobiles, G.R. NO.92326, Jan. 24, 1992 205 SCRA
356
Under the Child and Youth Welfare Code, private respondent had the
right to file a petition for adoption by herself, without joining her
47
husband therein. When Mrs. Bobiles filed her petition, she was
exercising her explicit and unconditional right under said law.
Concept of Support
Right to support
Lim v. Lim, G.R. NO. 163209, Oct. 30, 2009 604 SCRA 691
The inability of the parents to sufficiently provide for their children shifts
a portion of their obligation to the ascendants in the nearest degree, both
in the paternal (petitioners) and maternal lines, following the ordering in
Article 199.
Gan vs. Reyes, G.R. NO.145527, May.28, 2002 382 SCRA 357
A judgment ordering for support is immediately executory despite
pendency of appeal.
De Asis vs. CA, G.R. NO.127578, Feb. 15, 1999 303 SCRA 176
48
Concept
Santos Sr. v. CA, G.R. NO. 113054, Mar. 16, 1995 242 SCRA 407
When a parent entrusts the custody of a minor to another, such as a
friend or godfather, even in a document, what is given is merely
temporary custody and it does not constitute a renunciation of parental
authority. Even if a definite renunciation is manifest, the law still
disallows the same.
Parents who exercises Parental Authority
Joint Parental Authority
Rule in case of Separation of Parents
Perez v. CA, G.R. NO. 118870, Mar. 29, 1996 255 SCRA 661
Only the most compelling of reasons shall justify the court's awarding
the custody of such a child to someone other than his mother, such as
her unfitness to exercise sole parental authority. In the past the following
grounds have been considered ample justification to deprive a mother of
custody and parental authority: neglect, abandonment, unemployment
and immorality, habitual drunkenness, drug addiction, maltreatment of
the child, insanity and being sick with a communicable disease.
It is clear that every child [has] rights which are not and should not be
dependent solely on the wishes, much less the whims and caprices, of
his parents. His welfare should not be subject to the parents' say-so or
mutual agreement alone. Where, as in this case, the parents are already
separated in fact, the courts must step in to determine in whose custody
the child can better be assured the rights granted to him by law. The
need, therefore, to present evidence regarding this matter, becomes
imperative.
49
shall be separated from the mother, unless the court finds compelling
reasons to order otherwise.
The liability for the accident, whether caused by the negligence of the
minor driver or mechanical detachment of the steering wheel guide of the
jeep, must be pinned on the minor’s parents primarily. The negligence of
petitioner St. Mary’s Academy was only a remote cause of the accident.
It is a rule long accepted by the courts that the right of parents to the
custody of their minor children is one of the natural rights incident to
parenthood, a right supported by law and sound public policy.
Duty of Representation
50
Licel was only 14 years old, definitely a minor, on May 22, 2001, when
she was presented before respondent’s sala to affirm the execution of her
affidavit of desistance. This being the case, said affidavit should have
been executed with the concurrence of her parents. Licel could not
validly give consent to an affidavit of desistance, for a minor is
incompetent to execute such an instrument.
(Articles 225-227)
Lindain v. CA, G.R. NO. 95305 , Aug. 20, 199 212 SCRA 725
Under the law, a parent, acting merely as the legal (as distinguished
from judicial) administrator of the property of his/her minor children,
does not have the power to dispose of, or alienate, the property of said
children without judicial approval.
Neri v. Heirs of Hadji Yusop, G.R. No 194366, Oct. 10, 2012 683
SCRA 253
Administration includes all acts for the preservation of the property and
the receipt of fruits according to the natural purpose of the thing. Any
act of disposition or alienation, or any reduction in the substance of the
patrimony of child, exceeds the limits of administration. Thus, a father or
mother, as the natural guardian of the minor under parental authority,
does not have the power to dispose or encumber the property of the latter
Bondagjy vs. Bondagjy, G.R. NO. 140817, Dec. 07, 2001 371 SCRA
64
Indeed, what determines the fitness of any parent is the ability to see to
the physical, educational, social and moral welfare of the children, and
the ability to give them a healthy environment as well as physical and
financial support taking into consideration the respective resources and
social and moral situations of the parents.
51
Cang vs CA,296 SCRA 128
Concept
Effects of Emancipation
Title XI SUMMARY JUDICIAL PROCEEDINGS IN THE FAMILY LAW
Regulations
See RA 9262 (Anti Violence against Women and Children [VAWC]) &
IRR
52
Uy (Jardeleza) vs. CA, G.R. NO. 109557, Nov. 29, 2000 346 SCRA
246
Rule 95 of the ROC, not the Rule on Summary Proceedings in the Family
Code, shall apply in a sale of a conjugal property where one spouse is is
an incompetent. A comatose spouse is incompetent.
Republic v. Tango, G.R. NO.161062, Jul. 31, 2009 594 SCRA 560
Rep. v. Bermudez-Lorino G.R. NO. 160258 , Jan. 19, 2005 449 SCRA
5
53
176 of the Family Code)”; IRR of 9255; Passport Law (RA 8239)
Arts.774 & 777; Art. 1456; Arts 22, 2142-2175; Wills & Succession
PROPERTY
Concept of Property
Classification of Property
54
The words "Personal property" under the Revised Penal Code must be
considered in tandem with the word "take" in the law. The statutory
definition of "taking" and movable property indicates that, clearly, not all
personal properties may be the proper subjects of theft. The general rule
is that, only movable properties which have physical or material
existence and susceptible of occupation by another are proper objects of
theft.
In the instant case, the parties: (1) executed a contract styled as “Real
Estate Mortgage and Chattel Mortgage,” instead of just “Real Estate
Mortgage” if indeed their intention is to treat all properties included
therein as immovable, and (2) attached to the said contract a separate
“LIST OF MACHINERIES & EQUIPMENT”. These facts, taken together,
evince the conclusion that the parties’ intention is to treat these units of
machinery as chattels.
55
While the two storage tanks are not embedded in the land, they may,
nevertheless, be considered as improvements on the land, enhancing its
utility and rendering it useful to the oil industry. It is undeniable that the
two tanks have been installed with some deG.R.ee of permanence as
receptacles for the considerable quantities of oil needed by Meralco for its
operations.
Rights as property
Concept
Jura Regalia simply means that the State is the original proprietor of all
lands and, as such, is the general source of all private titles. Thus,
pursuant to this principle, all claims of private title to land, save those
acquired from native title, must be traced from some grant, whether
express or implied, from the State. Absent a clear showing that land had
been let into private ownership through the State’s imprimatur, such
land is presumed to belong to the State
56
Public Service vs Public Use
Properties of public dominion, being for public use, are not subject to
levy, encumbrance or disposition through public or private sale. Any
encumbrance, levy on execution or auction sale of any property of public
dominion is void for being contrary to public policy.
57
Kinds of Properties of Public Dominion
To qualify as foreshore land, it must be shown that the land lies between
the high and low water marks and is alternately wet and dry according to
the flow of the tide. The land's proximity to the waters alone does not
automatically make it a foreshore land.
The buyer did not acquire private ownership of the bed of the eastern
branch of the Cagayan River even if it was included in the deeds of
absolute sale executed by the sellers since the sellers “could not have
validly sold land that constituted property of public dominion.”
Reclaimed Properties
The subject reclaimed lands are still part of the public domain,
owned by the State and, therefore, exempt from payment of real
estate taxes. Here, the subject lands are reclaimed lands,
58
specifically portions of the foreshore and offshore areas of Manila
Bay. As such, these lands remain public lands and form part of
the public domain.
Title II Ownership
Ownership in General
Concept of Ownership
Attributes of Ownership
Recovery of Property
59
claims that he has a better right to the property must first fix the identity
of the land he is claiming by describing the location, area and boundaries
thereof. Anent the second requisite, i.e., the claimant's title over the
disputed area, the rule is that a party can claim a right of ownership only
over the parcel of land that was the object of the deed.
In forcible entry, the possession is illegal from the beginning and the only
issue is who has the prior possession de facto. In unlawful detainer,
possession was originally lawful but became unlawful by the expiration
or termination of the right to possess and the issue of rightful possession
is the one decisive, for in such action, the defendant is the party in
actual possession and the plaintiff's cause of action is the termination of
the defendant's right to continue in possession.
German Management & Services, Inc. v. CA. 177 SCRA 495 (1989)
Limitations on Ownership
60
Right to sub-surface and airspace
General Provision
Accession
Definition
Kinds of Accession
Accession Discreta
61
Kinds of Fruits
Accession Continua
Fundamental rules
Industrial Accession
The rule under article 448 of the NCC applies only when the builder,
planter or sower believes he had the right so to build, plant or sow
because he thinks he owns the land or believes himself to have a claim of
title.
Article 448 applies only to a case where one builds on land in the belief
that he is the owner thereof and it does not apply where one’s only
interest in the land is that of a lessee under a rental contract.
62
The value of the useful improvements consisting of various fruits,
bamboos, a house and camarin made of strong materials based on the
market value of the said improvements.
Natural Accession
Alluvion
Riparian owners are, strictly speaking, distinct from owners, the latter
being owners of lands bordering the shore of the sea or lakes or other
tidal waters.
Since the subject land was the direct result of the dumping of sawdust
by the Sun Valley Lumber Co., the accretion was man-made, hence, Art.
457 does not apply. Ergo, the subject land is part of the public domain.
63
The right of the owners of the bank adjacent to rivers to the accretion
which they receive by virtue of the action of the waters of the river is ipso
jure and there is no need of an action of the owner of the bank to possess
the new addition since it belongs to him by the very fact of the addition.
Avulsion
Definition
Avulsion vs Alluvion
There need be no act on their part to subject the old river bed to their
ownership, as it is subject thereto ipso jure from the moment the mode of
acquisition becomes evident, without need of any formal act of
acquisition. Such abandoned riverbed had fallen to the private ownership
of the owner of the land through which the new river bed passes even
without any formal act of his will and any unauthorized occupant thereof
will be considered as a trespasser.
Formation of Island
Adjunction or Conjunction
Commixtion or Confusion
Specification
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Chapter 3 Quieting of Title
Requisites
The issues in a case for quieting of title are fairly simple; the plaintiff
need to prove only two things, namely: "(1) the plaintiff or complainant
has a legal or an equitable title to or interest in the real property subject
of the action; and (2) that the deed, claim, encumbrance or proceeding
claimed to be casting a cloud on his title must be shown to be in fact
invalid or inoperative despite its prima facie appearance of validity or
legal efficacy. Stated differently, the plaintiff must show that he has a
legal or at least an equitable title over the real property in dispute, and
that some deed or proceeding beclouds its validity or efficacy."
Under Articles 476 and 477 of the Civil Code, the two (2) indispensable
requisites in an action to quiet title are: (1) that the plaintiff or
complainant has a legal or an equitable title to or interest in the real
property subject of the action; and (2) that a deed, claim, encumbrance
or proceeding is claimed to be casting cloud on his title.
In this case, an action to quiet title is not the proper remedy because
petitioner no longer had any legal or equitable title to or interest in the
lots. The petitioner’s status as possessor and owner of the lots had been
settled in the final and executory December 4, 1985 decision of the
Bureau of Lands that the DENR Secretary and the OP affirmed on
appeal. Thus, the petitioner is not entitled to the possession and
ownership of the lots.
‘An action for quieting of title may not be brought for the purpose of
settling a boundary dispute.
65
Title III- Co-ownership
Definition
Requisites
Nature of Co-ownership
Alejandrino v. Court of Appeals, 295 SCRA 536, 548, Sept. 17, 1998
Each co-owner of property which is held pro indiviso exercises his rights
over the whole property and may use and enjoy the same with no other
limitation than that he shall not injure the interests of his co-owners.
Sources of Co-ownership
Extinguishment of Co-ownership
The rule in this jurisdiction is that the redemption by one co-heir or co-
owner of the property in its totality does not vest in him ownership over it
since redemption is not a mode of terminating a co-ownership.
66
Sanchez v. Court of Appeals, 404 SCRA 541, 548, June 20, 2003
Pangan v. Court of Appeals, 166 SCRA 375, 382, Oct. 17, 1988
From the moment one of the co-owners claims that he is the absolute
and exclusive owner of the properties and denies the others any share
therein, the question involved is no longer one of partition but of
ownership
The first phase of a partition and,or accounting suit is taken up with the
determination of whether or not a co-ownership in fact exists, and a
partition is proper (i.e., not otherwise legally proscribed) and may be
made by voluntary aG.R.eement of all the parties interested in the
property. This phase may end with a declaration that plaintiff is not
entitled to have a partition either because a co-ownership does not exist,
or partition is legally prohibited.
67
Cruz v. Catapang G.R. 164110, Feb. 12, 2008
Title V Possession
Concept of Possession
Elements of Possession
Kinds of Possession
Parilla v. Pilar, G.R. NO. 167680, Nov. 30, 2006 - One whose interest
is merely that of a holder, such as a mere tenant, agent or usufructuary,
is not qualified to become a possessor builder in good faith.
68
Bunyi v. Factor, G.R. NO. 172547, Jun. 30, 2009
591 SCRA 350
Effects of Possession
Actual delivery of the books having been made, Cruz acquired ownership
over the books which he could then validly transfer to the private
respondents. The fact that he had not yet paid for them to EDCA was a
69
matter between him and EDCA and did not impair the title acquired by
the private respondents to the books.
Bad faith does not simply connote bad judgment or negligence; it imports
a dishonest purpose or some moral obliquity and conscious doing of
wrong; it partakes of the nature of fraud. We have held that it is a breach
of a known duty through some motive of interest or ill will.
Title VI Usufruct
Restrictive Covenant
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Because of this character, an easement of a right of way may only be
acquired by virtue of a title.
Classification of Nuisance
Remedies
Telmo v. Bustamante, G.R. NO. 182567, Jul. 13, 2009
The wing walls do not per se immediately and adversely affect the safety
of persons and property. The fact that an ordinance may declare a
structure illegal does not necessarily make that structure a nuisance.
71
Perez v. Madrona G.R. NO. 184478, Mar. 21, 2012 -
Respondents’ fence is not a nuisance per se. By its nature, it is not
injurious to the health or comfort of the community. It was built
primarily to secure the property of respondents and prevent intruders
from entering it.
Donation
Nature of Donations
Classification of Donations
Formalities of Donation
The donation is null and void when (a) the deed of donation fails to show
the acceptance, or (b) where the formal notice of the acceptance made in
a separate instrument is either not given to the donor or else noted in the
deed of donation, and in the separate acceptance.
Villanueva vs. Spouses Branoco, G.R. No. 172804, January 24, 2011
When the donor used the words that the gift "does not pass title during
my lifetime; but when I die, she shall be the true owner of the two
aforementioned parcels"] the donor meant nothing else than that she
reserved of herself the possession and usufruct of said two parcels of
land until her death, at which time the donee would be able to dispose of
them freely.
Central Philippines University vs. CA, G.R. No. 112127 July 17,
1995
72
In essence, a life insurance policy is no different from a civil donation
insofar as the beneficiary is concerned. Both are founded upon the same
consideration: liberality. A beneficiary is like a donee, because from the
premiums of the policy which the insured pays out of liberality, the
beneficiary will receive the proceeds or profits of said insurance.
Since no period was imposed by the donor on when must the donee
comply with the condition, the latter remains the owner so long as he
has tried to comply with the condition within a reasonable period. Only
then - when the non-fulfillment of the resolutory condition was brought
to the donor's knowledge - that ownership of the donated property
reverted to the donor as provided in the automatic reversion clause of the
deed of donation.
PRESCRIPTION
OBLIGATIONS
I. DEFINITION
MAKATI STOCK EXCHANGE vs. CAMPOS, G.R. NO. 138814, April 16,
2009
73
Respondent used the terms "right and obligation" in his Petition from
which he concluded that that such Petition sufficiently states a cause of
action. Right and obligation are legal terms with specific legal meaning;
A right is a claim or title to an interest in anything whatsoever that is
enforceable by law, while an obligation is defined in the Civil Code as a
juridical necessity to give, to do or not to do and in the words of Arias
Ramos "An obligation is a juridical relation whereby a person (called the
creditor) may demand from another (called the debtor) the observance of
a determinative conduct (the giving, doing or not doing), and in case of
breach, may demand satisfaction from the assets of the latter."
For failure to pay on time the amortization, SSS imposed the 12%
penalty contained in the penal clause of the contract entered into
between the parties. Inpositive obligations, (to give and to do), the
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penalty is demandable when the debtor is in mora; hence, the necessity
of demand by the debtor unless the same is excused.
ANSAY vs. BOARD OF DIRECTORS, G.R. NO. L-13667, April 29, 1960
Article 1423 of the New Civil Code classifies obligations into civil or
natural, "Civil obligations are a right of action to compel their
performance, while Natural obligations, not being based on positive law
but on equity and natural law, do not grant a right of action to enforce
their performance, but after voluntary fulfillment by the obligor, they
authorize the retention of what has been delivered or rendered by reason
thereof".
75
enforced by the creditor but a new contract recognizing and assuming
the prescribed debt with full knowledge of the prescription would be valid
and enforceable and he thereby waives the benefit of prescription.
2. CIVIL OBLIGATIONS
V. SOURCES OF OBLIGATIONS
Delfin, the father, was held jointly and severally liable with his minor son
Dante arising from the criminal act committed by the latter. The civil
liability which the law imposes upon the father and, in case of his death
or incapacity, the mother, for any damages that may be caused by the
minor children who live with them, is a necessary consequence of the
parental authority they exercise over them which imposes upon the
parents the "duty of supporting them, keeping them in their company,
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educating them in proportion to their means", while, on the other hand,
gives them the "right to correct and punish them in moderation" .
Cruz alleged that Tuason had been enriched at the expense of Cruz by
virtue of an agreement made by Cruz and the Deudors in the clearing,
improving, subdividing and selling the large tract of land for the reasons
that said improvements are being used and enjoyed by Tuason. A
presumed quasi-contract cannot emerge as against one party when the
subject matter thereof is already covered by an existing contract with
another party.
A. NEGOTIORUM GESTIO
77
ADILLE vs. CA, G.R. NO. L-44546 January 29, 1988
B. SOLUTIO INDEBITI
PUYAT & SONS, INC. vs. CITY OF MANILA, G.R. NO. L-17447, April
30, 1963
The City Treasurer of Manila refused to refund the retail dealer's tax
erroneously paid by the petitioner on it's belief that it was not exempted
from such, on the ground that the tax was voluntarily paid and not
under protest which was a condition sine qua non in order that a legal
basis may arise. Voluntariness is incompatible with mistake being a
case of solutio indebiti, protest is not required as a condition sine qua
non for its application.
78
CINCO vs. CANONOY, G.R. NO. L-33171, May 31, 1979
NPC as a result of its inability to maintain the level of water in its dam
brought damages to defendants but asserts that the damages, if any,
were due to the heavy rains and should be regarded as a fortuitous
event. Negligence or imprudence is human factor which makes the
whole occurrence humanized, as it were, and removed from the rules
applicable to acts of God
JIMENEZ vs. CITY OF MANILA, G.R. NO. 71049, May 29, 1987
79
Integrated Corporation being joint tort-feasors are solidarily liable under
Article 2194 of the Civil Code.
JIMENEZ vs. CITY OF MANILA, G.R. NO. 71049, May 29, 1987
Petitioner fell into the open drainage holes, causing him physical
injuries, in a public market being managed by Asiatic Integrated
Corporation but such public market is still under the control and
supervision of the City of Manila. As a defense against liability on the
basis of a quasi-delict, one must have exercised the diligence of a good
father of a family. (Art. 1173 of the Civil Code).
80
GAISANO CAGAYAN, INC. vs INSURANCE COMPANY OF NORTH
AMERICA, G. R. NO. 147839, June 8, 2006
B. FAILURE OF PERFORMANCE
ART 1170
It is clear upon the records that the sole and principal reason for the
cancellation of the allocation of rice contracted by the appellee herein in
Burma, was the failure of the letter of credit to be opened by NARIC
within the contemplated period which resulted in the consequent
damage. Every debtor who fails in performance of his obligations due to
fraud, negligence, or delay is bound to indemnify for the losses and
damages caused thereby.
C. DELAY
1. MORA SOLVENDI
ART 11
SANTOS VENTURA HOCORMA FOUNDATION, INC., vs. SANTOS, G.R.
NO. 153004, November 5, 2004
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When respondents wrote a demand letter to petitioner, the obligation was
already due and demandable, and when the petitioner failed to pay its
due obligation after the demand was made, it incurred delay. Delay as
used in this article is synonymous to default or mora solvendi which
means delay in the fulfillment of obligations with respect to time and in
order for the debtor to be in default, it is necessary that the following
requisites be present: (1) that the obligation be demandable and already
liquidated; (2) that the debtor delays performance; and (3) that the
creditor requires the performance judicially or extrajudicially.
2. MORA ACCIPIENDI
3. COMPENSATIO MORAE
Cortes’ admission agreed that the Corporation’s full payment of the sum
would depend upon his delivery of the TCTs of the three lots.
Considering that their obligation was reciprocal, performance thereof
must be simultaneous and the mutual inaction of Cortes and the
Corporation therefore gave rise to a compensation morae or default on
the part of both parties because neither has completed their part in their
reciprocal obligation.
Petitioners contend that they have fully complied with their obligation
under the Memorandum of Agreement but due to respondents’ failure to
increase the capital stock of the corporation to an amount that will
accommodate their undertaking, it had become impossible for them to
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perform their end of the Agreement. In reciprocal obligations, failure of
the other party to perform the obligation renders the other party to
demand fulfillment of the obligation or asked for the rescission of the
contract, but not simply not performing their part of the Agreement.
D. NEGLIGENCE
1. DEGREE OF DILIGENCE
Sicam exempts himself from liability on the ground that the robbery of
his pawnshop is a fortuitous event which is by definition is an
extraordinary event not foreseeable or avoidable. In order for a fortuitous
event to exempt one from liability, it is necessary that one has committed
no negligence or misconduct that may have occasioned the loss and
robbery per se, just like carnapping, is not a fortuitous event for it does
not foreclose the possibility of negligence on the part of herein
petitioners.
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diligence which is to be observed in the performance of an obligation
then that which is expected of a good father of a family or ordinary
diligence shall be required.
2. FORTUITOUS EVENT
NAKPIL & SONS v. CA, G.R. NO. L-47851 April 15, 1988
There was an earthquake which caused the building heavy damage but
the other nearby structures had less damages as compared to the said
building, the architects, engineers and contractors are claiming
fortuitous event as a defense. To be exempt from liability due to an act of
God, the ff must occur:
3. EXTRAORDINARY INFLATION
84
Respondent patentee was dismissed as the permanent chief chemist of
the corporation without any fault or negligence on his part after the
execution of the Bill of Assignment, prompting him to rescind the
contract. The general rule is that rescission of a contract will not be
permitted for a slight or casual breach, but only for such substantial and
fundamental breach as would defeat the very object of the parties in
making the agreement.
A. PURE OBLIGATIONS
ART 1179
HONGKONG AND SHANGHAI BANKING CORP. vs. BROQUEZA, G.R.
NO. 178610 November 17, 2010
B. CONDITIONAL OBLIGATIONS
SUSPENSIVE CONDITION
183 SCRA 171
Art. 1181
85
not take place, the parties would stand as if the conditional obligation
had never existed.
In view of our finding in the present case that the aG.R.eement between
the parties is a contract to sell, it follows that the appellate court erred
when it decreed that a judicial rescission of said aG.R.eement was
necessary. In a contract to sell, the payment of the purchase price is a
positive suspensive condition and failure to pay the price agreed upon is
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not a mere breach, casual or serious, but a situation that prevents the
obligation of the vendor to convey title from acquiring an obligatory force.
CONDITION PRECEDENT
PARKS vs. PROVINCE OF TARLAC, G.R. NO. L-24190, July 13, 1926
RESOLUTORY CONDITION
ART 1181
87
Petitioner claimed that respondents are liable for the whole amount of
their debt and the interest thereon, after they defaulted on the monthly
installments, due to acceleration clause therein. Respondents, on the
other hand, countered that the installments were not yet due and
demandable, evidenced by the blank space left for the date on which the
installments should have commenced and theorized that fulfillment of
the obligation is dependent on the sole will of the debtor, hence proper
court should first fix a period for payment. The act of leaving blank the
due date of the first installment did not necessarily mean that the
debtors were allowed to pay as and when they could, since the presence
of an acceleration clause and a late payment penalty, showed the
intention of the parties that the installments should be paid at a definite
date, this is an obligation with a period.
Petitioner seeks the reversal of the decision of the lower court which
convicted her of the crime of Estafa when she failed to give the proceeds
of the sale of the tobacco in accordance with their agreement which says
that ''...payment should be given as soon as the tobaccos are sold...'' and
contended that the court should first fix the period. It is clear in the
aG.R.eement, that the obligation was immediately demandable as soon
as the tobacco was disposed of hence, Article 1197 of the New Civil Code,
which provides that the courts may fix the duration of the obligation if it
does not fix a period, does not apply.
ART 1197
Araneta, who was not able to comply with his obligation to create side
streets on the sides of the land which were sold to the PSE due to the
presence of squatters, questions the decision of the lower court ordering
him to comply with his obligation within 2 years from the finality of the
decision. It must be recalled that Article 1197 of the Civil Code involves a
two-step process, the Court must first determine that "the obligation
does not fix a period", or from the nature and the circumstances it can be
inferred that a period was intended, because courts can not fix a period
merely because in its opinion it is or should be reasonable and the
complaint not having sought that the court should set a period, but must
set the time that the parties are shown to have intended.
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4. OBLIGATIONS WITH A PENAL CLAUSE
THE BACHRACH MOTOR CO., INC., vs. ESPIRITU, G.R. NO. L-28497
November 6, 1928
Defendant alleged that the decision of the lower court to pay 25 percent
of the amount of the trucks in addition to the amount of the trucks plus
12 per cent per annum is unconscionable and exceeds the rate fixed by
law. The penalty agreed upon does not include the interest, and which
may be demanded separetely and the penalty is not to be added to the
interest for the determination of whether the interest exceeds the rate
fixed by the law, since said rate was fixed only for the interest.
5. RECIPROCAL OBLIGATION
89
GSIS sold a house to Agcaoili, and required him to immediately occupy it
under pain of cancellation of the sale, but Agcaoili found out that the
house was uninhabitable hence payment was suspended which
prompted GSIS to cancel the sale. It is axiomatic that "(i)n reciprocal
obligations, neither party incurs in delay if the other does not comply or
is not ready to comply in a proper manner with what is incumbent upon
him."
Petitioners contend that they have fully complied with their obligation
under the Memorandum of Agreement but due to respondents’ failure to
increase the capital stock of the corporation to an amount that will
accommodate their undertaking, it had become impossible for them to
perform their end of the Agreement. In reciprocal obligations, failure of
the other party to perform the obligation renders the other party to
demand fulfillment of the obligation or asked for the rescission of the
contract, but not simply not performing their part of the Agreement.
SOLIDARY OBLIGATION
90
The absence of the word "solidary" in the dispositive portion of the
Decision, renders the liability joint. Well-entrenched is the rule that
solidary obligation cannot lightly be inferred, and there is a solidary
liability only when the obligation expressly so states, when the law so
provides or when the nature of the obligation so requires.
PNB assails the order of dismissal of the lower court dismissing its
complaint against several solidary debtors on the gr.ound that one of the
defendants died during the pendency of the case and therefore the
complaint, being a money claim based on contract, should be prosecuted
in the testate or intestate proceeding for the settlement of the estate of
the deceased. The choice is undoubtedly left to the solidary creditor to
determine against whom he will enforce collection and in case of the
death of one of the solidary debtors, the creditor may, if he so chooses,
proceed against the surviving solidary debtors without necessity of filing
a claim in the estate of the deceased debtors.
JOINT OBLIGATIONS
TOPIC: JOINT and SOLIDARY OBLIGATIONS
Philtranco Bus has been held solidarily liable with its bus driver, Calang,
when Calang accidentally collided with a jeepney killing a bystander and
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two jeepney passengers while other passengers were seriously injured.
Since the cause of action against Calang was based on delict, Philtranco
cannot be held jointly and severally liable with Calang, based on quasi-
delict under Articles 2176 and 2180 of the Civil Code which pertain to
the vicarious liability of an employer for quasi-delicts that an employee
has committed.
RFC turned down the request of Saura, Inc. for an additional loan which
prompted Saura, Inc. to ask that the mortgage be cancelled, which was
done. The action thus taken by both parties was in the nature mutual
desistance — what Manresa terms "mutuo disenso" — which is a mode of
extinguishing obligations, a concept that derives from the principle that
since mutual aG.R.eement can create a contract, mutual disaG.R.eement
by the parties can cause its extinguishment.
AZCONA vs. JAMANDRE, G.R. NO. L-30597, SCRA, June 30, 1987
J. M. Tuason & Co., Inc. vs. Javier, NO. L-28569, February 27, 1970
Apart from the initial installment of P396.12, paid upon the execution of
the contract, the defendant religiously satisfied the monthly installments
accruing thereafter, for a period of almost eight (8) years and although
the principal obligation under the contract was P3,691.20, the total
payments made by the defendant including stipulated interest,
aggregated P4,134.08.
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If the obligation has been substantially performed in good faith, the
obligor may recover as though there had been a strict and complete
fulfillment, less damages suffered by the obligee.
ART 1240
TO WHOM PAYMENT SHOULD BE MADE
All dividends accruing to the said shares after the rendition of judgment
belonged to Aranas but UTEX paid the co-defendants despite its
knowledge and understanding of the final judgment. It is elementary
that payment made by a judgment debtor to a wrong party cannot
extinguish the obligation of such debtor to its creditor.
93
The promissory note in question provided on its face for payment of the
obligation in Philippine currency, but the aG.R.eement between the
parties originally involved a dollar transaction.
Appellant claims that lower court erred in declaring and holding that the
balance owing from defendant-appellant to plaintiff-appellee on the IRRI
Project should be paid on the basis of the rate of exchange of the U.S.
dollar to the Philippine peso at the time of payment of judgment. Even if
the obligation assumed by the defendant was to pay the plaintiff a sum of
money expressed in American currency, the indemnity to be allowed
should be expressed in Philippine currency at the rate of exchange at the
time of judgment rather than at the rate of exchange prevailing on the
date of defendant's breach.
LEGAL TENDER
Checks representing deposit money do not have legal tender power and
their acceptance in the payment of debts, both public and private, is at
the option of the creditor.
Petitioner received the payment partly in cash and partly in check but
was not able to encash the check, and now questions the said payment
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after 10 years. Respondents, on the other hand, want the petitioner to
deliver to them the owner’s duplicate of the title and the peaceful
possession and enjoyment of the lot in question.
The geneal rule is delivery of a check produces the effect of payment only
when it is cashed, pursuant to Art. 1249 of the Civil Code. The rule does
not apply, however, if the debtor is prejudiced by the creditor’s
unreasonable delay in the presentment of the check. Acceptance of a
check implies an undertaking of due diligence in presenting it for
payment, and if he from whom it is received sustains loss by want of
such diligence, it will be held to operate as actual payment of the debt or
obligation for which it was given.
B. CONSIGNATION
ART 1257
SOCO vs. MILITANTE, G.R. NO. L-58961 June 28, 1983
ART 1258
95
If the creditor to whom tender of payment has been made refuses without
just cause to accept it, the debtor shall be released from responsibility by
consignation which is the act of depositing the thing due with the court
or judicial authorities but it generally requires a prior tender of payment.
ART 1259
The decision subject of the present petition for review holds the view that
there was substantial compliance with the requisites of consignation and
so ruled in favor of private respondent. Substantial compliance is not
enough and the essential requisites of a valid consignation, under
Articles 1256 to 1261 of the New Civil Code must be complied with fully
and strictly in accordance with the law and must be accorded a
mandatory construction.
Respondents alleged that the offer to redeem was not sincere, because
there was no consignation. The right to redeem is a RIGHT, not an
obligation, therefore, there is no consignation required to preserve the
right to redeem.
TENDER OF PAYMENT
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incapacitated to receive the payment at the time it is due; or when,
without just cause, he refuses to give a receipt; or when two or more
persons claim the same right to collect; or when the title of the obligation
has been lost.
SPOUSES TEOFILO vs. REYES, G.R. NO. 150913, February 20, 2003
In order that consignation may be effective the debtor must show that (a)
there was a debt due; (b) the consignation of the obligation had been
made because the creditor to whom a valid tender of payment was made
refused to accept it; (c) previous notice of the consignation had been
given to the person interested in the performance of the obligation; (d)
the amount due was placed at the disposal of the court; and, (e) after the
consignation had been made the person interested was notified thereof.
C. DACION EN PAGO
CALTEX (PHILIPPINES), INC., vs. CA, G.R. NO. 72703, November 13,
1992
97
totally extinguished only when the parties, by aG.R.eement, express or
implied, or by their silence, consider the thing as equivalent to the
obligation.
In opposing the money claim, Respondent alleged that the surety bonds
and the indemnity agreements had been extinguished by the execution of
the deed of assignment, because this amounted to dation in payment
whereby the former is considered to have alienated his property in favor
of the latter in satisfaction of a monetary debt (Artide 1245). The
transaction could not be dation in payment because the deed of
assignment was executed on December 4, 1959, the obligation of the
assignor to refund the assignee had not yet arisen, hence, there was no
obligation yet on the part of the petitioner.
D. COMPENSATION
SOLINAP vs. DEL ROSARIO, G.R. No. L-50638 July 25, 1983
98
ART 1980
BPI vs CA, G.R. NO. 136202, January 25, 2007
A bank generally has a right of set-off over the deposits therein for the
payment of any withdrawals on the part of a depositor, because fixed,
savings, and current deposits of money in banks and similar institutions
are governed by the provisions concerning simple loan, hence, the
relationship between banks and depositors is that of creditor and debtor.
Legal compensation under Article 1278 of the Civil Code may take place
when all the requisites mentioned in Article 1279 are present.
GAN TION vs. HON. COURT OF APPEALS, G.R. NO. L-22490, May 21,
1969
The award for attorney's fees is made in favor of the litigant, not of his
counsel, hence, it is the litigant, not his counsel, who is the judgment
creditor and who may enforce the judgment by execution, such credit,
therefore, may properly be the subject of legal compensation.
ART 1278
PNB vs VDA. DE ONG ACERO, G.R. NO. L-69255, February 27, 1987
PNB's main thesis is that when it opened a savings account for ISABELA,
it (PNB) became indebted to ISABELA, so that when ISABELA itself
subsequently came to be indebted to it on account of ISABELA's breach
of the terms of the Credit Agreement, ISABELA and PNB became at the
same time creditors and debtors of each other, thus compensation
automatically took place between them, in accordance with Article 1278
of the Civil Code.
Compensation shall take when two persons, in their own right, are
creditors and debtors of each other and that compensation may transpire
by operation of law, as when all the requisites therefor, set out in Article
1279, are present. Nonetheless these legal provisions can not apply if it
has not proven by competent evidence that PNB is a creditor of ISABELA.
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FRANCIA vs. IAC, G.R. NO. L-67649 June 28, 1988
Francia contends that his tax delinquency has been extinguished by legal
compensation and claims that the government owed him when a portion
of his land was expropriated, hence, his tax obligation had been set-off
by operation of law.
100
Petitioner contended that, after extrajudicially foreclosing the mortgage,
private respondent still owes the former an amount, by way of deficiency.
Petitioner also claimed that it has the right to apply or set off private
respondent's money market claim despite the fact that the validity of the
extrajudicial foreclosure sale and petitioner's claim for deficiency are still
in question.
Article 1279 of the Civil Code requires among others, that in order that
legal compensation shall take place, "the two debts be due" and "they be
liquidated and demandable", because compensation is not proper where
the claim of the person asserting the set-off against the other is not clear
nor liquidated.
MONDRAGON vs. SOLA, JR., G.R. NO. 174882 January 21, 2013
E. NOVATION
LBP vs. ONG, , G.R. NO. 190755, November 24, 2010
Land Bank faults the CA for finding that novation given that substitution
of debtors was made without its consent, thus, it was not bound to
recognize the substitution under the rules on novation. Novation which
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consists in substituting a new debtor in the place of the original one,
may be made even without the knowledge or against the will of the latter,
but not without the consent of the creditor.
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F. RESCISSION
UNIVERSAL FOOD CORPORATION vs. CA, G.R. NO. L-29155, May 13,
1970
ART 1191
In the present case, the failure of respondents to pay the balance of the
purchase price within ten years from the execution of the Deed did not
amount to a substantial breach. Under Article 1191 of the Civil Code,
the right to rescind an obligation is predicated on the violation of the
reciprocity between parties, brought about by a breach of faith by one of
them however, rescission is allowed only where the breach is substantial
and fundamental to the fulfillment of the obligation.
ART 1169,1191
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SOLAR HARVEST, INC., vs DAVAO CORRUGATED CARTON
CORPORATION, G.R. NO. 176868. July 26, 2010
The CA added that even assuming that the agreement was for
respondent to deliver the boxes, respondent would not be liable for
breach of contract as petitioner had not yet demanded from it the
delivery of the boxes. Without a previous demand for the fulfillment of
the obligation, petitioner would not have a cause of action for rescission
against respondent as the latter would not yet be considered in breach of
its contractual obligation, since the right to rescind a contract arises
once the other party defaults in the performance of his obligation.
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this remains true notwithstanding the absence of express stipulations in
the agreement indicating the consequences of breaches which the parties
may commit.
Defendants contend (1) that the fulfillment and the rescission of the
obligation in reciprocal ones are alternative remedies, and plaintiff
having chosen fulfillment in the Civil Case, she cannot now seek
rescission; and (2) that even if plaintiff could seek rescission the action to
rescind the obligation has prescribed. The rule that the injured party
can only choose between fulfillment and rescission of the obligation, and
cannot have both, applies when the obligation is possible of fulfillment, if
the fulfillment has become impossible, Article 1191 (3) allows the injured
party to seek rescission even after he has chosen fulfillment.
ART 1234
ANGELES, ET AL vs. CALASANZ, G.R. NO. L-42283, March 18, 1985
The party who deems the contract violated may consider it resolved or
rescinded, and act accordingly, without previous court action, but it
proceeds at its own risk, for it is only the final judgment of the
corresponding court that will conclusively and finally settle whether the
action taken was or was not correct in law.
G. RESTITUTION
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UNIVERSAL FOOD CORPORATION vs. THE COURT OF APPEALS,
MAGDALO V. FRANCISCO, SR., and VICTORIANO N. FRANCISCO,
G.R. NO. L-29155, May 13, 1970
C O N T R A C T S
I. A. DEFINITION
SPOUSES BALILA vs. IAC, G.R. NO. L-68477 October 29, 1987
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In the present case, there is no question that the subject matter of the
sale is the 364-square meter Davao lot owned by the Spouses Tongson
and the selling price agreed upon by the parties is P3,000,000, but the
existence of the remaining element, which is consent of the contracting
parties, to sell the property, claiming that their consent was vitiated by
fraud, renders the contract of sale void.
A. CONSENT
Pending resolution of the case, both parties freely and voluntarily entered
into an agreement for the purpose of finally settling their dispute in this
case. As a contract, a compromise is perfected by mutual consent,
however, a judicial compromise, while immediately binding between the
parties upon its execution, is not executory until it is approved by the
court and reduced to a judgment.
Petitioner takes the position that he was pressured into signing the
Agreement because of private respondent's demand, for payment for the
"exploitation" of the life story of Moises Padilla, otherwise, she would "call
a press conference declaring the whole picture as a fake, fraud and a
hoax and would denounce the whole thing in the press, radio, television
and that they were going to Court to stop the picture." It is necessary to
distinguish between real duress and the motive which is present when
one gives his consent reluctantly because a contract is valid even though
one of the parties entered into it against his own wish and desires, or
even against his better judgment.
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Appellant made a qualified acceptance of appellee’s letter-offer of a parcel
of land but appellee made a new proposal to pay the amount in staggered
amounts within two years in quarterly amortizations. To convert the
offer into a contract, the acceptance must be absolute and must not
qualify the terms of the offer, for a qualified acceptance constitutes a
counter-offer and is a rejection of the original offer and such acceptance
is not sufficient to generate consent.
B. CAUSE OF CONTRACTS
ART 1354
LAW vs. OLYMPIC SAWMILL CO., G.R. NO. L-30771, May 28, 1984
The defendants admitted the principal obligation but claimed that the
additional amount constituted usurious interest. Under Article 1354 of
the Civil Code, the agreement of the parties relative to the additional
amount is presumed to exist and is lawful, unless the debtor proves the
contrary. Since no evidentiary hearing had been held, the defendants
therefore had not proven that the obligation was illegal.
C. CONSIDERATION
ART. 1354
Although the contract states that the purchase price of ₱2,000.00 was
paid by Policronio to Alfonso for the subject properties, it has been
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proven that no such payment was made. It is well-settled that where a
deed of sale states that the purchase price has been paid but in fact has
never been paid, the deed of sale is null and void for lack of
consideration.
III. FORMALITIES
ART 1724
DUE OBSERVANCE OF PRESCRIBED FORMALITIES
In the absence of a written authority by the owner for the changes in the
plans and specifications of the building and of a written agreement
between the parties on the additional price to be paid to the contractor,
as required by Article 1724, the claim for the cost of additional works
must be denied.
Petitioner Lao Sok promised to give his employees their separation pay,
as soon as he receives the insurance proceeds for his burned building,
but contends that the contract was orally made hence unenforceable
since it does not comply with the Statute of Frauds. Contracts in
whatever form they may have been entered into are binding on the
parties unless form is essential for the validity and enforceability of that
particular contract.
ART 1356
GALLARDO vs.HONORABLE INTERMEDIATE APPELLATE COURT,
G.R. NO. L-67742 October 29, 1987
The issue here is whether or not the unnotarized deed of sale can be
considered as a valid instrument for effecting the alienation by way of
sale of a parcel of land registerd under the Torrens System.
The general rule enunciated in said Art. 1356 is that contracts are
obligatory, in whatever form they may have been entered, provided all the
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essential requisites for their validity are present, except when the law so
requires requiring a contract to be in some form for validity or
enforceability.
From the exchange of telegrams between the two parties, there was not
yet a meeting of the minds as to the cause of the contract. The cause of a
contract has been defined "as the essential reason which moves the
contracting parties to enter into it (8 Manresa, 5th Edition, p. 450). In
other words, the cause is the immediate, direct and proximate reason
which justifies the creation of an obligation thru the will of the
contracting parties (3 Castan, 4th Edition, p. 347)." (General Enterprises,
Inc. v. Lianga Bay Logging Co., Inc., 11 SCRA 733, 739). For the private
respondent, the cause of the contract was the repair of its vessel
Zamboanga-J while for the petitioner the cause would be its commitment
to repair the vessel and make it seaworthy. The telegrams dated January
17, January 20, and January 28, 1975 sent by the petitioner to the
private respondent, however, indicate that the former had not accepted
the repair of Zamboanga-J, the reason being that the extent of the repair
to be made necessitated a major expense so that the petitioner insisted
on the presence of the private respondent for evaluation before it
accepted the repair of the wooden vessel. That the petitioner had not yet
consented to the contract is evident when on January 28, 1975, it sent a
telegram stating: "... NO AGREEMENT AS TO THE EX TENT OF REPAIRS
AND PAYMENT WILL UNDOCK VESSEL." The fact that the private
respondent who received this telegram ignored it, confirms that there
was no perfected contract to repair Zamboanga-J.
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SANCHEZ vs. RIGOS, G.R. NO. L-25494 June 14, 1972
V. INTERPRETATION OF CONTRACTS
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ASIAN CATHAY FINANCE AND LEASING CORPORATION vs.
SPOUSES G.R.AVADOR et al, G.R. NO. 186550, July 5, 2010
TIU vs. PLATINUM PLANS PHIL., INC., G.R. NO. 163512 February 28,
2007
CARIÑO vs. COURT OF APPEALS, G.R. NO. L-47661, July 31, 1987
Contracts of sale are void and produce no effect whatsoever where the
price, which appears therein as paid, has in fact never been paid by the
vendee to the vendor.
URETA vs. URETA, G.R. No. 165748, September 14, 2011 -Lacking in
an absolutely simulated contract is consent which is essential to a valid
and enforceable contract. Thus, where a person, in order to place his
property beyond the reach of his creditors, simulates a transfer of it to
another, he does not really intend to divest himself of his title and control
of the property; hence, the deed of transfer is but a sham. Similarly, in
this case, Alfonso simulated a transfer to Policronio purely for taxation
purposes, without intending to transfer ownership over the subject
lands.
The lower court held that the purchase by a lawyer of the property in
litigation from his client is categorically prohibited by Article 1491,
paragraph (5) of the Philippine Civil Code, and that consequently,
plaintiff's purchase of the property in litigation from his client was void
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and could produce no legal effect, by virtue of Article 1409, paragraph (7)
of our Civil Code. Contracts "expressly prohibited or declared void by
law' are "inexistent and that "(T)hese contracts cannot be ratified, neither
can the right to set up the defense of illegality be waived."
ART 1410
TONGOY vs. THE HONORABLE COURT OF APPEALS, G.R. NO. L-
45645 June 28, 1983
The issue in this case is whether or not the rights of herein respondents
over subject properties, which were the subjects of simulated or fictitious
transactions, have already prescribed. A void or inexistent contract is one
which has no force and effect from the very beginning, as if it had never
been entered into, and which cannot be validated either by time or by
ratification.
LITA ENTERPRISES, INC.,vs. IAC, G.R. NO. L-64693 April 27, 1984
Petitioner questions the validity of the sale between the respondent and
Suralta but the lower court held that the benefit of said prohibition in the
Public Land Act against the disposal of any land granted to a citizen
under that law does not inure to any third party. The right to set up the
nullity of a void or non-existent contract is not limited to the parties as in
the case of annulable or voidable contracts. The right to set up the
nullity of a void or non-existent contract is extended to third persons
who are directly affected by the contract.
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former being neither an owner nor administrator of the subject property,
and the sale cannot be the subject of the ratification by the probate
court.
Respondent, through fraudulent means was able to transfer the lot from
his parents to himself without consideration or cause through a
purported deed of The IAC held that the action had already prescribed
because an action to annul a contract based on fraud prescribes in four
years. The SC, however, held that the alleged contract of sale is vitiated
by the total absence of a valid cause or consideration which is an
indispensable requisite for the existence of a valid contract. Thus, Article
1410 of the Civil Code provides that '(T)he action or defense for the
declaration of the inexistence of a contract does not prescribe.
The illicit purpose becomes the illegal causa rendering the contracts void.
B. VOIDABLE CONTRACTS
ART 1327
The vendor Eligio, Sr. entered into an agreement with petitioner, but that
the former’s capacity to consent was vitiated by senile dementia. Insane
or demented persons cannot give consent to a contract, but if an insane
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or demented person does enter into a contract, the legal effect is that the
contract is voidable or annullable.
Applying Articles 1317 and 1403 of the Civil Code, the Court of Appeals
ruled that through their inaction and silence, the three sons of Emilia are
considered to have ratified the aforesaid sale of the subject property by
their mother. Ratification means that one under no disability voluntarily
adopts and gives sanction to some unauthorized act or defective
proceeding, which without his sanction would not be binding on him ,
hence, an alleged silence and inaction may not be interpreted as an act
of ratification on their part.
C. UNENFORCEABLE CONTRACTS
In the case at bar, it is undisputed that Atty. Adolfo Amor was entrusted,
as receiver, with the administration of BISTRANCO and it business, but
the act of entering into a contract is one which requires the authorization
of the court which appointed him receiver. The questioned contracts can
rightfully be classified as unenforceable for having been entered into by
one who had acted beyond his powers, due to Receiver Amor's failure to
secure the court's approval of said Contracts.
STATUTE OF FRAUDS
AINZA vs. SPOUSES PADUA, G.R. NO. 165420, June 30, 2005
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The contract of sale between Eugenia and Concepcion was evidenced by
a receipt signed by Eugenia. The verbal contract of sale between did not
violate the provisions of the Statute of Frauds because when a verbal
contract has been completed, executed or partially consummated, its
enforceability will not be barred by the Statute of Frauds, which applies
only to an executory agreement, thus, where one party has performed his
obligation, oral evidence will be admitted to prove the agreement.
Gabriel Sr., during his lifetime, sold the subject property to Antonita, the
purchase price payable on installment basis, thus, Gabriel Sr. appeared
to have been a recipient of some partial payments but after his death, his
son questions the verbal sale contract between Gabriel Sr. and Antonita,
and alleged that the contract is unenforceable for non-compliance with
the Statute of Frauds. The Statute of Frauds, in context, provides that a
contract for the sale of real property or of an interest therein shall be
unenforceable unless the sale or some note or memorandum thereof is in
writing and subscribed by the party or his agent. Where the verbal
contract of sale, however, has been partially executed through the partial
payments made by one party duly received by the vendor, as in the
present case, the contract is taken out of the scope of the Statute.
Both courts were of the view essentially that the evidence did not bear
out the claim of fraud; that under the Statute of Frauds, the parties'
covenant as to their properties' metes and bounds was unenforceable
since it was not reduced to writing. Not every agreement "affecting land"
must be put in writing to attain enforceability, under the Statute of
Frauds, Article 1403(2) (e) of the Civil Code, such formality is only
required of contracts involving leases for longer than one year, or for the
sale of real property or of an interest therein.
D. RESCISSIBLE CONTRACTS
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against him in and without paying any part of that judgment, Sadorra
sold the only two parcels of land belonging to the conjugal partnership to
his son-in-law. Contracts by virtue of which the debtor alienates
property by gratuitous title or alienations by onerous title when made by
persons against whom some judgment has been rendered in any
instance or some writ of attachment has been issued, are presumed to be
made in fraud of creditors, and the decision or attachment need not refer
to the property alienated and need not have been obtained by the party
seeking rescission.
1. CONSENSUALITY OF CONTRACTS
ART 1306 , 1336 , 1337
REPUBLIC OF THE PHILIPPINES vs. PLDT G.R. NO. L-18841
January 27, 1969
,
The Republic commenced suit against the PLDT commanding the PLDT
to execute a contract with it for the use of the facilities of latter's
telephone system throughout the Philippines. Parties can not be coerced
to enter into a contract where no agreement is had between them as to
the principal terms and conditions of the contract since freedom to
stipulate such terms and conditions is of the essence of our contractual
system, and by express provision of the statute, a contract may be
annulled if tainted by violence, intimidation, or undue influence (Articles
1306, 1336, 1337).
2. AUTONOMY OF CONTRACTS
ART 1306
WILLIAM GOLANGCO CONSTRUCTION CORPORATION vs.
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PHILIPPINE COMMERCIAL INTERNATIONAL BANK, G.R. NO. 142830
March 24, 2006
TIU vs. PLATINUM PLANS PHIL., INC., G.R. NO. 163512 February 28,
2007
It is admitted by both parties that the phrase "they shall not sell to
others these three lots but only to the seller Vicente Santiago or to his
heirs or successors" is an express prohibition against the sale of the lots
described in the "Compraventa" to third persons or strangers to the
contract. Parties may establish such stipulations, clauses, terms and
conditions as they may deem convenient, provided they are not contrary
to law, morals, good customs, public order, or public policy.
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A contract is the law between the contracting parties, and when there is
nothing in it which is contrary to law, morals, good customs, public
policy or public order, the validity of the contract must be sustained.
ART 1159
OCCENA vs. HON. JABSON, G.R. NO. L-44349, October 29, 1976
3. MUTUALITY OF CONTRACTS
BANCO FILIPINO SAVINGS vs. NAVARRO, G.R. NO. L-46591, July 28,
1987
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SPOUSES FLORENDO vs. COURT OF APPEALS, G.R. NO. 101771
December 17, 1996
In order that obligations arising from contracts may have the force of law
between the parties, there must be mutuality between the parties based
on their essential equality, hence, a contract containing a condition
which makes its fulfillment dependent exclusively upon the uncontrolled
will of one of the contracting parties, is void.
ART 1308
The spouses Rocamora posit that their loan would not have bloated to
more than double the original amount if PNB had not increased the
interest rates and had it immediately foreclosed the mortgages. Any
increase in the rate of interest made pursuant to an escalation clause
must not be left solely to the will of one of the parties, but must be the
result of a mutual agreement between the parties, hence, a de-escalation
clause that would authorize a reduction in the interest rates
corresponding to downward changes made by law or by the Monetary
Board must be included, otherwise, the change carries no binding effect.
Being an heir there is privity of interest between the heir and the
deceased, hence, heirs are bound by contracts entered into by their
predecessors-in-interest except when the rights and obligations arising
therefrom are not transmissible by (1) their nature, (2) stipulation or (3)
provision of law.
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"contracts can only bind the parties who entered into it, and it cannot
favor or prejudice a third person, even if he is aware of such contract and
has acted with knowledge thereof."
Contracts take effect only between the parties, their assigns and heirs,
and if a contract should contain some stipulation in favor of a third
person, the contracting parties must have clearly and deliberately
conferred a favor upon the third person.
A. INNOMINATE CONTRACTS
ART 1307
CORPUS vs. COURT OF APPEALS, G.R. NO. L-40424 June 30, 1980
There was no express contract between the parties for the payment of
attorney's fees, but the respondent rendered legal services to petitioner.
The payment of attorney's fees to respondent may be justified by virtue of
the innominate contract of facio ut des (I do and you give which is based
on the principle that "no one shall unjustly enrich himself at the expense
of another" and under Article 1307 such contracts shall be regulated by
the stipulations of the parties, by the general provisions or principles of
obligations and contracts, by the rules governing the most analogous
nominate contracts, and by the customs of the people.
B. DIVISIBLE CONTRACTS
BRIONES vs. CAMMAYO, ET AL., G.R. NO. L-23559, October 4, 1971
C. CONTRACT OF ADHESION
ART 1750
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ONG YIU vs. HONORABLE COURT OF APPEALS, G.R. NO. L-40597
June 29, 1979
ART 1326
C & C COMMERCIAL CORPORATION vs. MENOR, G.R. NO. L-28360
January 27, 1983
ART 1332
TANG vs. COURT OF APPEALS, G.R. NO. L-48563 May 25, 1979
It is the position of the petitioner that because Lee See Guat was illiterate
and spoke only Chinese, she could not be held guilty of concealment of
her health history because the applications for insurance were in English
and the insurer has not proved that the terms thereof had been fully
explained to her. The obligation to show that the terms of the contract
had been fully explained to the party who is unable to read or
understand the language of the contract, when fraud or mistake is
alleged, devolves on the party seeking to enforce it.
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signature or his "adhesion" thereto hence must be construed against the
party causing it.
The appellants seek to recover the insurance proceeds, relying upon the
insurance contract executed by and between the State Bonding &
Insurance Company, Inc. and Mora. Contracts take effect only between
the parties thereto, except where the contract contains some
stipulations, known as stipulations por atrui, in favor of a third person,
who is allowed to avail himself of a benefit granted to him by the terms of
the contract, provided that the contracting parties have clearly and
deliberately conferred a favor upon such person, however such third
person not a party to the contract has no action zagainst the parties
thereto, and cannot generally demand the enforcement of the same, if he
did not communicate his acceptance thereto to the obligor before the
revocation.
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