Art. III, Sec.

9
“Private property shall not be taken for public use without just compensation.”

1. Can the government take private real property without just compensation?
The answer is a big NO. Article III, Section 9 of the Philippine Constitution states that
"Private property shall not be taken for public use without just compensation"

2. What is the concept of public use?

As a requirement for eminent domain, "public use" is the general concept of meeting
public need or public exigency. It is not confined to actual use by the public in its traditional
sense.

In the case of Reyes vs. NHA, GR No. 147511, Jan. 20, 2003, the term "public use" has now
been held to be synonymous with "public interest", "public benefit", "public welfare", and
"public convenience".

3. How are properties classified according to ownership?

 Public dominion
 Private ownership

4. What is a private ownership?

- it is a property owned by:
 Private persons, either individually or collectively; and
 The State in its private capacity (patrimonial property)

Patrimonial property- all other properties possessed by LGUs without prejudice to special laws.
It is a property not devoted to public use, public service, or the development of the national
wealth. It is intended rather for the attainment of the economic ends of the State, that is, for
subsistence. It is owned by the State in its private or proprietary capacity.

5. What is public dominion?

Property owned by the State (or its political subdivisions) in its public or sovereign
capacity and intended for public use.

6. What is the definition of the word "just"?

In its literal sense, just means fair, impartial or reasonable. The term can also be
defined in a wider sense to mean ethically, morally and legally correct or right.

7. What is the concept of just compensation?

In the case of Eslaban vs. De Onorio, just compensation means not only the correct
amount to be paid to the owner of the land but also payment within a reasonable time from
its taking. - it is the full and fair equivalent of the property taken; the fair market value of
the property.

8. How do we determine just compensation?

In determining just compensation, the cost of acquisition of the land, the current value
of the like properties, its nature, actual use and income, the sworn valuation by the owner,
the tax declarations, and the assessment made by government assessors shall be considered.
 Reckoning point of market value of the property. It was declared that the value of the
property must be determined either as of the date of the taking or the filing of the complaint,
whichever comes first. (Eslaban v. De Onorio)

9. Who else may be entitled to just compensation?

Entitlement to the payment of just compensation is not, however, limited to the
"owner", but includes all those who have lawful interest in the property to be condembed,
including a mortgagee, a lessee, and a vendee in posession under an executory contract.

10. What does this particular section of the Bill of Rights mean?
This imposes a limit on the government's exercise of the power of eminent domain
and provides a measure of protection to the individual's right to property.

Sec 10.
No law impairing the obligation of contracts shall be passed

1. What is a contract?
Ans. The term contract used in the impairment clause refers to any lawful agreement on
property or property rights whether real or personal, tangible or intangible.

2. Can you give an example of a contract?

Ans. Anytime an individual, business, or other entity agrees to take action, or to make an
exchange or payment for something of value, a contract has been created. Examples of such
agreements in business include bills of sale, purchase orders, and employment agreements.

3. What is an obligation?
Ans. An obligation is the vinculum juris or the tie that binds the parties to each other.

4. What is the difference between a contract and an obligation?

A contract is one of the sources of obligation. There can be no contract if there is no obligation,
though not all obligations arise from contracts because obligations also arise from the law,
quasi-contracts, delicts and quasi-delicts.

5. Are there certain agreements that are not covered under the term “contracts”
as used in the impairment clause?
Ans. Yes. Such as marriage contracts, which, more than a mere agreement between the
spouses, is regarded as a social institution subject at all times to regulation by the legislature.
And also, licenses, example an operation of a cockpit or an industrial forest management
agreement, as these involves grants of privileges only that are revocable.

6. What is the purpose of the impairment clause?

Ans. The purpose is to safeguard the integrity of valid contractual agreements against
unwarranted interference by the state. The rule is for the legislature to respect the will of the
contracting parties by not tampering the same with subsequent laws that will change the
intention or modify the rights and obligations.
7. What do you mean about impairment?
Ans. Impairment is anything that diminishes the efficacy of the contract, to impair, the law
must retroact so as to affect existing contracts concluded before its enactment. There is no
impairment if the law is made to operate prospectively only, to cover contracts entered into
after its enactment.

8. Is the impairment clause absolute?

Ans. No, there are instances when contracts are valid at the time they have been constituted
but later on may become invalid or some of its provision will become illegal due to subsequent
laws.

9. Since the impairment clause is not absolute, what is the limitation?

Ans. All contracts and all rights are subject to the police power of the State. Such regulations
must be subject to change from time to time which depends upon the necessity required by
the general well-being of the community. If the law is a proper exercise of police power, it
will prevail over the contract.

10. Can give an example of such instances?

Ans. In the case of Ortigas & Co v. Feati Bank, two lots were sold by Ortigas to Feati bank.
One of the provisions of their contract is that the lots shall only be for residential purposes.
However, the latter constructed a commercial building. The former sought to restrain such
construction however there was a subsequent zoning resolution adopted declaring the area
where the lots were located commercial and industrial zone. The zoning resolution is a valid
exercise of police power thus modifying the said provision in the contract of the parties.
The purpose of zoning is to allow local and national authorities to regulate and control land
and property markets to ensure complementary uses. Zoning can also provide the opportunity
to stimulate or slow down development in specific areas.