ESTAFA

ART 315. SWINDLING (ESTAFA)

ELEMENTS

1. The accused defrauded another by

a. Abuse of confidence; or
b. Deceit
2. Damage or prejudice capable of pecuniary (monetary) estimation is caused to the offended
party or 3rd person

1st ELEMENT — 3 WAYS OF COMMITTING ESTAFA

Estafa is committed —

1. With unfaithfulness or abuse of confidence

2. By means of false pretenses or fraudulent acts
3. Through fraudulent means
- Fraud – voidable contracts (valid until annulled); use of machination to induce the other party to
enter into contract

DECEIT IS NOT AN ESSENTIAL REQUISITE OF ESTAFA WITH ABUSE OF CONFIDENCE

- When the property has been voluntarily entrusted

o Except in the abuse of confidence in misappropriating funds or property

2nd ELEMENT — BASIS OF THE PENALTY

ELEMENTS OF ESTAFA WITH UNFAITHFULNESS

1. Offender has an onerous obligation to deliver something of value

2. That he alters its substance, quantity, or quality
3. Damage or prejudice is caused to another

THERE MUST BE AN EXISTING OBLIGATION TO DELIVER SOMETHING OF VALUE

- The delivery already existed. On making the delivery, the offender has altered the thing he
delivered

BY VIRTUE OF ONEROUS OBLIGATION

- The thing to be delivered must be fully or partially paid when it was received
o If not, the offender will not be liable for estafa

ALTERATIONS

1. Substance i.e., delivering opium instead of molasses

a. Altering the substance may constitute violation of Food, Drug, and Cosmetic Act
2. Quantity i.e., pledging 20,000 bales of hemp, even though the offender has only 12,000
3. Quality i.e., delivering poor kind of rice instead of 1 st class
a. When there is no agreement as to the quality of the thing  not guilty of estafa
THERE IS STILL ESTAFA EVEN THOUGH THE OBLIGATION IS IMMORAL OR ILLEGAL

ELEMENTS OF ESTAFA WITH ABUSE OF CONFIDENCE (ART 315 NO 1 (A))

1. Money, goods, or other personal property be received by the offender in trust, commission,
administration, or any other obligation involving the duty to make delivery of, or to return,
the same (rent or loan?)
a. Check is included in the word “money”
Trust –
Commission – fee paid for services
Administration – the one who collects money?
2. There must be misappropriation or conversion of such money or property or denial on part of
receipt
3. That such misappropriation or conversion or denial is to the prejudice of another
4. There is a demand made by the offended party

PERSONAL PROPERTY (1st ELEMENT) MUST BE RECEIVED BY THE OFFENDER TRASNFERRING JURIDICAL
POSSESSION TO HIM

- Juridical possession – gives the transferee a right over the thing

PD 115 — TRUST RECEIPTS LAW

- Failure of an entrustee to turn over the proceeds of the sale of goods, documents or
instruments covered by a trust receipt to the extent of the amount owing to entruster  estafa

2 OBLIGATION

1. To turn it over (sales)

2. Return

WHEN THE GOODS SUBJECT OF THE TRUST RECEIPT ARE NOT INTENDED FOR SALE 
TRANSACTION IS LOAN  CANNOT BE CHARGED AS ESTAFA

THE PHRASE “OR UNDER ANY OBLIGATION INVOLVING THE DUTY TO MAKE DELIVERY OF, OR TO
RETURN THE SAME,” INCLUDES QUASI-CONTRACTS AND CERTAIN CONTRACTS OF BAILMENT

- Quasi-contract (1157, NCC)

o Solution indebiti – obligation to return money paid by mistake
o Negotiorum gestio – voluntary takes charge of the property of another
- Contracts of bailment
o Contract of deposit
o Contract of lease of personal property
o Commodatum –
Lessee or borrower acquires juridical possession  contracts require the return of the
thing received

CONTRACT OF PURCHASE AND SALE  NOT ESTAFA ONLY CIVIL LIABILITY

- When the transaction fails  not estafa

SAME WITH CASH ADVANCE

AND MUTUUM (LOAN OF MONEY)

- i.e., money market

NO “OBLIGATION INVOLVING THE DUTY TO RETURN THE SAME”  ONLY CIVIL LIABILITY

- i.e., sale of property on trial bases

THERE IS NO ESTAFA WHEN THE MONEY OR PERSONAL PROPERTY IS NOT TO BE USED FOR A
PARTICULAR PURPOSE OR TO BE RETURNED

- It must be stated clearly that it is received for [example] safekeeping, commission, or

administration

AMOUNTS PAID BY THE STUDENTS TO THE SCHOOL TO ANSWER FOR THE VALUE OF MATERIALS
BROKEN ARE NOT MERE DEPOSITS

- Relationship between them is debtor and creditor  treated as loan not deposit (mutuum?)

THERE IS NO ESTAFA IF THE THING RECEIVED UNDER A CONTRACT OF SALE ON CREDIT

- Credit -

CRIMINAL LIABILITY FOR ESTAFA IS NOT AFFECTED BY NOVATION OF CONTRACT

- Novation – consensual replacement of a contract's party or obligation with a new one. The new
party takes on the obligation of the original party, thus completely releasing the former party of
that obligation
o Difference from assignment is it includes rights, needs consent, and terminates the
original contract

ELEMENTS OF ESTAFA WITH ABUSE OF CONFIDENCE (ART 315 NO 1 (B))

1. Misappropriation – to take something for own benefit

2. Conversion – the act of disposing another’s property as if it were one’s own
3. Denial that the thing was received

MOMENTARY USE BY THE AGENT OF FUNDS BELONGING TO HIS PRINCIPAL DOES NOT CONSTITUTE
ESTAFA

- Fraudulent intent is a necessary element of estafa

THERE IS NO ESTAFA WHEN AN AGENT WHO GAVE TO A SUB-AGENT THE THING RECEIVED FROM HIS
PRINCIPAL

- The law on agency allows the appointment in the absence of an express agreement

WIHHOLDING APPLICATION OF MONEY RECEIVED BY AGEN  DECIDED ON ITS OWN PARTICULAR

FACTS — MUST ACT ON GOOD FAITH

RIGHT OF AGENT TO DEDUCT COMMISSION FROM AMOUNTS COLLECTED

 - Can an agent with a right to a commission who collected money for the principal be held for
estafa, if he failed to turn over that part of his collection to the latter?  IT DEPENDS
o If the agent is authorized to retain his commission  no estafa
o Otherwise, he is guilty of estafa, because he is not a joint owner

“TO THE PREJUDICE OF ANOTHER” — NOT NECESSARILY THE OWNER OF THE PROPERTY

PARTNERSHIP. WHEN THERE IS ESTAFA

- When the money or property had been received by a partner for specific purpose and he later
misappropriated  guilty of estafa

DEMAND NEED NOT BE FORMAL. IT MAY BE VERBAL

DEMAND IS NOT REQUIRED, BUT IS NECESSARY  IT IS A CIRCUMSTANCIAL EVIDENCE

DEMAND IS NOT NECESSARY IN ESTAFA THROUGH MISAPPROPRIATION OR CONVERSION

THERE IS NO ESTAFA THROUGH NEGLIGENCE

- Fraudulent act is necessary; same with intent to gain

THE GRAVITY OF THE CRIME OF ESTAFA IS DETERMINED ON THE BASIS OF THE AMOUNT NOT
RETURNED BEFORE THE INSTITUTION OF THE CRIMINAL ACTION

ESTAFA WITH ABUSE OF CONFIDENCE VS THEFT

ESTAFA THEFT
Material or physical possession of the thing
Offender receives the thing Offender takes the thing without consent
The offender must acquire the juridical
possession of the thing

WHEN THE OWNER DOES NOT EXPECT THE IMMEDIATE RETURN OF THE THING HE DELIVERED TO THE
ACCUSED  MISAPPROPRIATION IS ESTAFA

- EXCEPTION: obligation to deliver to a third person  qualified theft

o Applies with servants, domestics, or employees

POSSESSION OF AGENT VS POSSESSION OF TELLER OF BANK

AGENT TELLER OF BANK

Agent can assert as against his own principal Payment to the teller is payment to the bank —
itself
- Teller has no independent right to
possess the same as against the bank

SELLING THE THING RECEIVED TO BE PLEDGED WITH THE INTENT TO APPROPRIATE AT THE TIME IT
WAS RECEIVED  THEFT
ESTAFA WITH ABUSE OF CONFIDENCE VS MALVERSATION

ESTAFA MALVERSATION
(private) (public)
Offenders are entrusted with funds/property Offenders are entrusted with funds/property
Continuing offense Continuing offense
Property is always private Usually public funds/property
Offender is private individual or public officer Offender is usually a public officer accountable
who is not accountable for public funds/property for public funds/property
Crime is committed by misappropriation, Crime is committed by appropriation, taking or
conversion, or denial consenting

IN PROSECUTION FOR MALVERSATION

- The private individual allegedly in conspiracy with the offender may be held liable for estafa

MISAPPROPRIATION OF FIREARMS RECEIVED BY A POLICEMAN  MALVERSATION

ESTAFA BY TAKING UNDUE ADVANTAGE OF THE SIGNATURE OF THE OFFENDED PARTY IN BLANK (ART
315 NO 1 (C))

ELEMENTS

1. The paper with the signature of the offended party be in blank

2. The offended party should have delivered it to the offender
3. That above the signature of the offended party is a document is written by the offender
without authority to do so
4. The document so written creates a liability of, or causes damage to, the offended party or any
3rd person

ESTAFA BY MEANS OF DECEIT

ELEMENTS

1. There must be a false pretense, fraudulent act or fraudulent means

2. Must be made or executed prior to or simultaneously with the commission of the fraud
3. Offended party must have relied on the [act], that is, he was induced to part with his money or
property because of the [act]
4. Offended party suffered damage

THERE IS NO DECEIT IF THE COMPLAINANT WAS AWARE OF THE FICTITIOUS NATURE OF THE
PRETENSE  NO ESTAFA

3 WAYS OF COMMITTING ESTAFA UNDER (ART 315 NO 2 (A))

1. Fictitious name
2. Falsely pretending to possess:
a. Power
b. Influence
c. Qualifications
 d. Property
e. Credit
f. Agency
g. Business or imaginary transactions –
3. Other similar deceits

ILLEGAL RECRUITMENT

**check reviewer**

ESTAFA BY MEANS OF DECEIT VS THEFT

- THERE MAY BE THEFT EVEN IF THE ACCUSED HAS POSSESSION OF THE PROPERTY — IF HE WAS
ENTRUSTED ONLY WITH THE MATERIAL OR PHYSICAL (DE FACTO) POSSESSION

COMPLEX CRIME — ESTAFA THROUGH FALSIFICATION OF COMMERCIAL (PUBLIC) DOCUMENT

- Estafa + falsification of commercial document (“malversation”)

ESTAFA THROUGH FALSE PRETENSE MADE IN WRITING IS ONLY A SIMPLE CRIME OF ESTAFA

ATTEMPTED ESTAFA THROUGH FORGERY

ESTAFA “BY MEANS OF OTHER DECEITS” (ART 318)

- i.e., deed of donation, vitiated by lack of consent

- estafa by obtaining food or accommodation at a hotel

ESTAFA BY ALTERING THE QUALITY, FINENESS OR WEIGHT OF ANYTHING PERTAINING TO HIS ART OR
BUSINESS. ART 315 NO 2 (B)

- Fraudulent manipulation is punished under the Consumer Act of the Philippines

ESTAFA BY PRETENDING TO HAVE GIVEN BRIBE (ART NO 2 (C))

- If he really bribed  crime is corruption of public officer

ESTAFA BY POSTDATING A CHECK OR ISSUING A CHECK IN PAYMENT OF AN OBLIGATION (ART NO 2

(D))

ELEMENTS

1. Offender postdated a check or issued a check in payment of an obligation

2. The offender had no funds in the bank or his funds deposited therein were not sufficient to
cover the amount of the check

CHECK MUST BE GENUINE

BY INDUCING ANOTHER BY MEANS OF DECEIT TO SIGN ANY DOCUMENT (ART 315 NO 3 (A))

ESTAFA BY RESORTING TO SOME FRAUDULENT PRACTICE TO INSURE SUCCESS IN GAMBLING (ART 315
NO 3(B))

ESTAFA BY REMOVING, CONCEALING, OR DESTROYING DOCUMENTS (ART 315 NO 3(C))

DISTINGUISHED FROM INFIDELITY IN THE CUSTODY OF DOCUMENTS

- In infidelity, the offender is a public officer who is officially entrusted with the document

ELEMENTS OF DECEIT AND ABUSE OF CONFIDENCE MAY CO-EXIST

THERE CAN BE A COMPLEX CRIME OF THEFT AND ESTAFA

ART 316 OTHER FORMS OF SWINDLING

PAR 1 – BY CONVEYING, SELLING, ENCUMBERING, OR MORTGAGING ANY REAL PROPERTY.

PRETENDING TO BE THE OWNER OF THE SAME

ELEMENTS

1. Immovable (real property)

2. Offender who is not the owner of said property should represent that he is the owner thereof
3. Offender should have executed an act of ownership (selling…)
4. Prejudice of the owner or a 3rd person

EVEN IF THE DECEIT IS PRACTICED AGAINST THE SECOND PURCHASER AND THE DAMAGE IS INCURRED
BY THE FIRST PURCHASER  VIOLATION OF ART 316 PAR 1

PAR 2 – DISPOSING OF REAL PROPERTY AS FREE FROM ENCUMBRANCE. ALTHOUGH SUCH

ENCUMBRANCE BE NOT RECORDED

ELEMENTS

1. Real property
2. Offender knew that the real property was encumbered, whether the encumbrance is recorded
or not
3. Express representation by the offender that the real property is free from encumbrance
a. Requires misrepresentation, fraud, or deceit
4. The act of disposing be made to the damage of another

ENCUMBRANCE

- Every right or interest in the land which exists in favor of 3 rd persons

THE OFFENDED PARTY MUST HAVE BEEN DECEIVED, THAT IS, HE WOULD HAVE GRANTED THE LOAN
HE HAD KNOWN THAT THE PROPERTY WAS ALREADY ENCUMBERED

WHEN THE LOAN JAD ALREADY BEEN GRANTED  ART 316 PAR 2 NOT APPLICABLE

PAR 3 – BY WRONGFULLY TAKING BY THE OWNER OF HIS PERSONAL PROPERTY FROM ITS LAWFUL
POSSESSOR

ELEMENTS

1. Offender is the owner of personal property

2. Personal property is in the lawful possession of another
 3. Offender wrongfully takes it from its lawful possessor
4. Prejudice is thereby caused to the possessor or 3 rd person
- Example: pawnshop

PAR 4 – BY EXECUTING ANY FICTITIOUS CONTRACT TO THE PREJUDICE OF ANOTHER

PAR 5 – BY ACCEPTING ANY COMPENSATION FOR SERVICES NOT RENDERED OR FOR LABOR NOT
PERFORMED

PAR 6 – BY SELLING MORTGAGING, OR ENCUMBERING REAL PROPERTY OR PROPERTIES WITH WHICH

THE OFFENDER GUARANTEED THE FULFILLMENT OF HIS OBLIGATION AS SURETY

ELEMENT

1. Offender is a surety in a bond given in a criminal or civil action

2. He guaranteed the fulfillment of such obligation with his real property or properties
3. He sells, mortgages, or, in any other manner encumbers said real property
4. Such sale, mortgage, or encumbrance is
a. Without express authority from the court
b. Made before the cancellation of his bond
c. Before being relieved from the obligation contracted by him

SYNDICATED ESTAFA

- PENALTY: RT – RP

ELEMENTS

1. Estafa defined in Arts 315 and 316

2. Committed by a syndicate of at least 5 persons
3. The defraudation results in the misappropriation of moneys contributed by stockholders, or
members of rural banks, cooperatives, “samahang nayon(s)” or farmers’ associations of funds
solicited by corporations/associations from the general public

ART 317 SWINDLING A MINOR

ELEMENTS

1. Offender takes advantage of the inexperience of emotions or feelings of a minor

2. He induces such minor—
a. To assume an obligation
b. Give release
c. Execute a transfer of any property or right
3. That the consideration is
a. Some loan of money
b. Credit
c. Other personal property
d. Transaction is to the detriment of such minor

ART 318 OTHER DECEITS

 BP 22 – BOUNCING CHECKS LAW

VIOLATED IN 2 WAYS

1. By making or drawing and issuing any check to apply on account or for value, knowing at the
time of issuance that he does not have sufficient funds or credit.  check is dishonored by the
drawee bank for insufficiency of funds or credit
2. Having sufficient funds in or credit with the drawee bank when he makes or draws and issues a
check
a. BUT failure to keep sufficient funds or to maintain credit within the period of 90 days
from the date appearing there on  dishonored by the drawee bank