2nd Week – Property Law 2. Rule of Description.

– If the property can be transported from one place to

another, and no injury would be suffered by it, then it is personal property,
a. Memorize and discuss Article 416.
unless expressly included in Art. 415.
Art. 416. The following things are deemed to be personal property:
e. Memorize and discuss Article 418.
(1) Those movables susceptible of appropriation which are not included in the
Art. 418. Movable property is either consumable or non-consumable. To the first
preceding article;
class belong those movables which cannot be used in a manner appropriate to their
(2) Real property which by any special provision of law is considered as
nature without their being consumed; to the second class belong all the others.
personalty;
(3) Forces of nature which are brought under control by science; and f. When is a property considered as a consumable or as a non-
(4) In general, all things which can be transported from place to place without consumable?
impairment of the real property to which they are fixed.
Classification Of Property As To Consumability
Comment:
(1) Consumable property. – is one which cannot be used according to its
Example: nature without being consumed or being eaten or used up. Example: A
glass of wine.
(1) Phone, Lampshade
(2) Non-Consumable property. – is one which can be used according to its
(2) Immovable Property  Doctrine of Estoppel  Movable Property
nature without being consumed or being eaten or used up. Example:
(3) Electric Generator, Gas Stove
Eyeglasses which could be used without being consumed.
(4) Blanket, Computer
Comment:
b. Memorize and discuss Article 417.
(1) Horse meat – consumable
Art. 417. The following are also considered as personal property;
(2) Race Horse – can be used without consumed
(1) Obligations and actions which have for their object movables or
g. Are the terms consumable/non-consumable interchangeable with
demandable sums; and
fungible/non-fungible?
(2) Shares of stock of agricultural, commercial, and industrial entities,
although they may have real estate. Fungibles and Non-Fungibles. – In many instances, the terms fungibles and non-
fungibles are used interchangeably with consumables and non-consumables
Comment:
respectively in the Civil Code. But there is no accuracy in the interchange of the
Demandable sums – any amount whether due and demandable or not, for as long concepts because a property may be fungible yet non-consumable or non-fungible
as somebody possess the right to collect is already considered property yet consumable.

c. Explain the Rule of Exclusion. Comment:

d. Explain the Rule of Description. Fungiblity of an object/property – can be replaced

Tests To Determine Whether Property Is Real or Personal Non-fungibility of an object/ property – cannot be replaced

1. Rule of Exclusion. – If the property is not included in Art. 415 then it is Example: Consumable but Non-Fungible
deemed excluded (inclusion unius est exclusion alterius).
- The Very First Chocolate Produced (consumable but has historical value)
 h. Discuss Article 419.
Art. 419. Property is either of public dominion or of private ownership.
i. When is a property considered belonging to public domain?
j. When is property considered of private ownership?
Classifications Of Property According To Ownership
(1) Property of public dominion – is property of the State in its public capacity.
Such properties are those intended for public use, for some public service,
or for the development of national wealth.
Dominium – is the capacity of the State to own or acquire property. The
use of this term is appropriate with reference to lands held by the State in
its propriety character. In such capacity, it may provide for the exploitation
and use of lands and other natural resources, including their disposition,
except as limited by the Constitution.
(2) Property of private ownership – consists of all property belonging to
private persons either individually or collectively (Art. 425).
k. What are the things considered as property of public dominion (Art. 420)?
Read also Sections 2 and 3 of Article XII of the 1987 Constitution.
Art. 420. The following things are property of public dominion:
(1) Those intended for public use, such as roads, canals, rivers, torrents, ports
and bridges constructed by the State, banks, shores, roadsteads, and
others of similar character;
(2) Those which belong to the State, without being for public use, and are
intended for some public service or for the development of the national
wealth.
Kinds Of Property Of Public Dominion
(1) Those for public use – such as roads, bridges, ports, canals constructed by
the State, rivers, torrents and similar others which could be used by
everyone including foreigners in the country.
(2) Those for public service – such as State buildings, firearms used by the
police and military officers, government vehicles use of certain public
officials, battleships. Only authorized personnel of the Government may
use them.
(3) Those for the development of the national wealth such as forests lands,
timberlands, mineral lands.
Section 2 of Article XII of the 1987 Constitution - All lands of the public domain,
waters, minerals, coal, petroleum, and other mineral oils, all forces of potential
energy, fisheries, forests or timber, wildlife, flora and fauna, and other natural
resources are owned by the State. With the exception of agricultural lands, all other
natural resources shall not be alienated. The exploration, development, and
utilization of natural resources shall be under the full control and supervision of the
State. The State may directly undertake such activities, or it may enter into co-
production, joint venture, or production-sharing agreements with Filipino citizens,
or corporations or associations at least sixty per centum of whose capital is owned
by such citizens. Such agreements may be for a period not exceeding twenty-five
years, renewable for not more than twenty-five years, and under such terms and
conditions as may be provided by law. In cases of water rights for irrigation, water
supply, fisheries, or industrial uses other than the development of water power,
beneficial use may be the measure and limit of the grant.
The State shall protect the nation’s marine wealth in its archipelagic waters,
territorial sea, and exclusive economic zone, and reserve its use and enjoyment
exclusively to Filipino citizens.
The Congress may, by law, allow small-scale utilization of natural resources by
Filipino citizens, as well as cooperative fish farming, with priority to subsistence
fishermen and fishworkers in rivers, lakes, bays, and lagoons.
The President may enter into agreements with foreign-owned corporations
involving either technical or financial assistance for large-scale exploration,
development, and utilization of minerals, petroleum, and other mineral oils
according to the general terms and conditions provided by law, based on real
contributions to the economic growth and general welfare of the country. In such
agreements, the State shall promote the development and use of local scientific and
technical resources.
The President shall notify the Congress of every contract entered into in accordance
with this provision, within thirty days from its execution.
Section 3 of Article XII of the 1987 Constitution - Lands of the public domain are
classified into agricultural, forest or timber, mineral lands, and national parks.
Agricultural lands of the public domain may be further classified by law according to
the uses which they may be devoted. Alienable lands of the public domain shall be
limited to agricultural lands. Private corporations or associations may not hold such
alienable lands of the public domain except by lease, for a period not exceeding
twenty-five years, renewable for not more than twenty-five years, and not to
exceed one thousand hectares in area. Citizens of the Philippines may lease not
more than five hundred hectares, or acquire not more than twelve hectares thereof
by purchase, homestead, or grant.
Taking into account the requirements of conservation, ecology, and development,
and subject to the requirements of agrarian reform, the Congress shall determine,
by law, the size of lands of the public domain which may be acquired, developed,
held, or leased and the conditions therefor.
k.1. Discuss Manila International Airport Authority v. CA, G.R.
No.
163072, 02 April 2009.
k.2. Discuss Laurel v. Garcia, G.R. No. 92013, 25 July 1990.
l. What is considered as patrimonial property (Art.421)?
Art. 421. All other property of the State, which is not of the character stated in the
preceding article, is patrimonial property.
Patrimonial Property, Meaning – This is a property pertaining to the State which is
not intended for public use, public service, or for the development of the national
wealth. It is intended rather for the attainment of the economic ends of the State,
that is, for its subsistence.
It may be disposed of by the State in the same manner that private individuals
dispose of their own property subject, however, to administrative laws and
regulations, In other words, a patrimonial property is a private property of the
State. It is owned in its private and not public capacity. Thus, it can be subject to
prescription (Art. 1113), and it can be the object of ordinary contracts or
agreements.
Possession of patrimonial property of the Government, whether spanning decades
or centuries, cannot ipso facto ripen into ownership.
m. Discuss Art. 422.
Art. 422. Property of public dominion, when no longer intended for public use or for
public service, shall form part of the patrimonial property of the State.
n. Discuss Art. 423.
Art. 423. The property of provinces, cities, and municipalities is divided into
property for public use and patrimonial property.
o. Discuss Art. 424.
p. What is a political subdivision?
Art. 424. Property for public use, in the provinces, cities, and municipalities, consist
of the provincial roads, city streets, municipal streets, the squares, fountains, public
waters, promenades, and public works for public service paid for by said provinces,
cities, or municipalities.
All other property possessed by any of them is patrimonial and shall be governed by
this Code, without prejudice to the provisions of special laws.
q. What are the classes of property of political subdivisions of a state?
Classes Of Property Of Political Subdivisions Of The State
1. Property for public use – consists of provincial roads, city streets,
municipal streets, squares, fountains, public waters, promenades, and
public works for public service.
2. Patrimonial property – consists of all other property without prejudice to
special laws.
r. Discuss Article 425.
Art. 425. Property of private ownership, besides the patrimonial property of the
State, provinces, cities, and municipalities, consist if all property belonging to
private persons, either individually or collectively.
s. What is the Regalian Doctrine?
Regalian Doctrine – under the Regalian doctrine all lands not otherwise appearing
to be clearly within private ownership are presumed to belong to the State.
Bases on the same doctrine, all mines underneath any land and all natural resources
belong to the State.
s.1. Discuss Secretary of DENR v. Yap, G.R. No. 167707, 08
October 2008.
t. Discuss Section 7 of Article XII 1987 Constitution.
Section 7 of Article XII 1987 Constitution - Save in cases of hereditary succession, no
private lands shall be transferred or conveyed except to individuals, corporations, or
associations qualified to acquire or hold lands of the public domain.
 v.1. Discuss Halili and Halili v. Court of Appeals, et al., G.R. No.
113539, 12 March 1998
Comment:

Section 8 of Article XII 1987 Constitution - Notwithstanding the provisions of

Section 7 of this Article, a natural-born citizen of the Philippines who has lost his x. Discuss Section 5 of Republic Act No. 8179.
Philippine citizenship may be a transferee of private lands, subject to limitations
Sec. 5. The Foreign Investments Act is further amended by inserting a new section
provided by law.
designated as Section 10 to read as follows:
3 Kinds of Succession
"Sec. 10. Other Rights of Natural Born Citizen Pursuant to the Provisions of Article
- Testamentary succession – a person's will, especially the part relating to
XII, Sec. 8 of the Constitution. – Any natural born citizen who has the legal capacity
personal property.
to enter into a contract under Philippine laws may be a transferee of a private land
- Intestate succession – relating to a person who dies without having made a
up to a maximum area of five thousand (5,000) square meters in the case of urban
will.
land or three (3) hectares in the case of rural land to be used by him for business or
- Mixed succession
other purposes. In the case of married couples, one of them may avail of the
In the Philippines, joint wills are not allowed by the law. privilege herein granted: provided, that if both shall avail of the same, the total area
acquired shall not exceed the maximum herein fixed.
A person cannot also transfer lands to foreigners.
"In case the transferee already owns urban or rural land for business or other
In other words, the Constitution explicitly prohibits non-Filipinos from acquiring or
purposes, he shall still be entitled to be a transferee of additional urban or rural
holding title to private lands. Among the exceptions are as follows:
land for business or other purposes which when added to those already owned by
(1) Transfer to an alien by way of legal succession; or him shall not exceed the maximum areas herein authorized.

(2) If the acquisition was made by a former natural-born citizen.  "A transferee under this Act may acquire not more than two (2) lots which should
u. Who are qualified to own private lands according to the Philippine be situated in different municipalities or cities anywhere in the Philippines:
Constitution? provided, that the total land area thereof shall not exceed five thousand (5,000)
hectares in the case of rural land for use by him for business or other purposes. A
Section 1 of Article XIII of the Constitution, natural resources, with the exception of transferee who has already acquired urban land shall be disqualified from acquiring
public agricultural land, shall not be alienated, and with respect to public rural land area and vice versa."
agricultural lands, their alienation is limited to Filipino citizens. 
y. Discuss Article 426.
It’s clear from this provision that private land may be transferred only to persons or
entitles who/which has the capacity “to acquire or hold lands of the public Art. 426. Whenever by provision of the law, or an individual declaration, the
domain.”  expression “immovable things or property”, or “movable things or property,” is
used, it shall be deemed to include, respectively, the things enumerated in Chapter
v. What is the rationale for prohibiting foreigners from acquiring lands in 1 and in Chapter 2.
the country?
Whenever the word “muebles,” or “furniture,” is used alone, it shall not be deemed
The rationale for prohibiting foreigners from acquiring (agricultural and urban) to include money, credits, commercial securities, stocks and bonds, jewelry,
lands in the Philippines is to prevent Filipino citizens from being landless in the scientific or artistic collection, books, medals, arms, clothing, horses or carriages
future. and their accessories, grains, liquids and merchandise, or other things which do not
have as their principal object the furnishing or ornamenting of a building, except
where from the context of the law, or the individual declaration, the contrary
clearly appears.