UNIVERSITY OF SAN-JOSE RECOLETOS

SCHOOL OF LAW
Cebu City

SYLLABUS/ COURSE OUTLINE

PROPERTY
First Semester AY 2021-2022

ATTY. MARIO DENNIS A. CALVO

Professor

COURSE DESCRIPTION: The study of the different kinds of property, the elements
and characteristics of ownership, possession, usufruct, easements or servitudes,
nuisance, and the different modes of acquiring ownership.

REFERENCE BOOKS:

Books on “Property” by the following authors:

1. Edgardo Paras
2. De Leon

GRADING SYSTEM:

The final grade will be determined as follows:

Quizzes 10 %
Recitation 10 %
Prelims 10%
Midterm Exams 30 %
Final Exams 40 %
100 %

COURSE OUTLINE

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I. DEFINITION

A. Classification under the Civil Code – Art. 414

1. Immovable or Real Property – Art. 415
a. by Nature – (1) & (8)
b. by Incorporation – (2), (3), (7)
c. by Destination – (4), (5), (6), (9)
d. by Analogy – (10)

2. Movable or Personal Property – Arts. 416 – 417

Standard Oil Co. of New York v. Jaramillo 44 Phil 630

Davao Sawmill v. Castillo 61 Phil 709
Berkenkotter v. Cu Unjieng 61 Phil 663
Mindanao Bus Co. v. City Assessor and Treasurer 6 SCRA 197
Makati Leasing v. Wearever 122 SCRA 296
Bicerra v. Teneza 6 SCRA 649
Serg’s Products v. PCI Leasing and Finance G.R. No. 137705 August 22, 2000
Tumalad v. Vicencio 41 SCRA 143
Tsai v. Court of Appeals 366 SCRA 324
Bd. of Assessment Appeals v. Meralco 10 SCRA 63
Benguet Corp. v. Central Bd. of Assessment Appeals 218 SCRA 271
Marcelo Soriano v. Sps. Galit G.R. No. 156295 1/29/2003
Sibal v. Valdez 50 Phil 521
Punzalan v. Lacsama 121 SCRA 381
FELS Energy Inc. v. Province of Batangas Feb 16, 2007 G.R. Nos. 168557 &
170628
Provincial Assessor of Agusan del Sur v. Filipinas Palm Oil Plantation G.R. No.
183416 October 5, 2016

3. Importance and Significance of Classification

a. From point of view of:
i. Criminal Law – nature of the crime
ii. Form of contracts involving movables or
immovables – public documents or verbal
contract
iii. Prescription – filing action
iv. Venue
v. Taxation

3. Differences between Real Rights and Personal Rights

B. By Ownership – PUBLIC OR PRIVATE OWNERSHIP

1. Res Nullius
2. Public Domain, (cf. Patrimonial – those that are not, or are
no longer, for public use or public service or property of the
State owned by it in its private or proprietary capacity)
(Arts. 419, 420-422, 424)

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 n.b. Art 422 – not self executing.

a. Property of State – Art. 420-422

i. For Public Use
ii. For Public Service
iii. For Development of National Wealth –
minerals, coal, oil, forest and other natural
resources

Municipality of Cavite v. Rojas 30 Phil. 602

Heirs of Malabanan v. Republic Sept 3, 2013 GR No. 179987
Chavez v. Public Estates Authority 384 SCRA 152
On Reconsideration: Chavez v. Public Estates Authority G.R. No. 133250 May 6,
2003
Usero v. CA G.R. No. 152115 Jan 26, 2005
Manila International Airport Authority v. CA 495 SCRA 591

b. Property of Municipal Corporations – Art. 424, par. 1

i. For Public Use including Public works for
Public Service

Levy Macasiano v. Roberto Diokno G.R. No. 97764 Aug 10, 1992

3. Private Property
i. Patrimonial Property of State – Art. 424 2nd
par.
ii. Patrimonial Property of Municipal
Corporations – Art. 424, par. 2
iii. Private Property of Private Persons – Art. 425

Government v. Cabangis 53 Phil 112

Cebu v. Bercilles 66 SCRA 481
Tantoco v. Municipal Council 49 Phil 52
Salas v. Jarencio 46 SCRA 743
Zamboanga del Norte v. City of Zamboanga 22 SCRA 1334

4. Effect and Significance of Classification of Property as

Property of Public Dominion
a. Property is Outside the Commerce of Man
b. Property Cannot be the Subject of Acquisitive
Prescription
c. Property Cannot be Attached or Levied upon in
Execution
d. Property Cannot be Burdened with a Voluntary
Easement

C. Other Classification
1. By their physical existence
a. Corporeal
b. Incorporeal

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 2. By their Autonomy of Dependence
a. Principal
b. Accessory
3. By their Subsistence After Use
a. Consumable – Art. 418
b. Non – Consumable – Art. 418
Differentiated from Fungible or Non – Fungible

c. Deteriorable or Non – deteriorable

4. By reason of their Susceptibility to Division

a. Divisible
b. Indivisible
5. By reason of Designation
a. Generic
b. Specific
6. Existence in Point of Time
a. Present
b. Future
7. Contents and Constitution
a. Singular
i. Simple
ii. Compound
b. Universal
8. Susceptibility to Appropriation
a. Non – appropriable
b. Appropriable
i. Already appropriated
ii. Not yet appropriated
9. Susceptibility to Commerce
a. Within the Commerce of Man
b. Outside the Commerce of Man

II. OWNERSHIP

A. Definitions
Ownership – It is an independent right of exclusive enjoyment and control of a
thing for the purpose of deriving therefrom all the advantages required by the
reasonable needs of the owner (or holder of the right) and the promotion of the general
welfare, but subject to the restrictions imposed by law and rights of others. (J.B.L. Reyes)

Ownership is a relation in private law by virtue of which a thing (or property

right) pertaining to one person is completely subjected to his will in everything not
prohibited by public law or the concurrence with the rights of another. (Scialoja)

B. Bundle of rights included in Ownership Art. 429

1. Jus Utendi (right to use and enjoy)

2. Jus Fruendi (right over the fruits – natural, civil & industrial)
3. Jus Abutendi (right to consume the thing by its use and to abuse)
4. Jus Disponendi (right to dispose, alienate, donate, sell, pledge, mortgage)
5. Jus Vindicandi (right to vindicate or recover possession/ownership)
6. Jus Possidendi (right to possess)

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 C. Other Specific Rights Found in Civil Code Arts. 429, 430, 437, 438,
444

a. Right to Exclude; Self-Help; Doctrine of Self-Help;

Elements Art. 429
b. Right to Enclose or Fence – Art. 430
c. Right to Receive Just Compensation in Case of
Expropriation – Art. 435
d. Right to Hidden Treasure – Arts. 438-439
e. Right to Accession – Art. 440
f. Right to Recover Possession and/or Ownership – Jus
Vindicandi

i. Available Actions to Recover

Possession/Ownership

Re: Immovable Property

- Accion Reivindicatoria
- Accion Publiciana
- Forcible Entry/ Unlawful Detainer (Rule 70 Rules
of Court)
Re: Movable Property

- Replevin (Rule 60 Rules of Civil Procedure)

ii. Requisites for Recovery – Art. 434

a. Identify the property

b. Prove his right of ownership – rely on strength of
his evidence not on weakness of defendant (Art.
434)

Perez v. Mendoza, G.R. No. L-22006 July 28, 1975

Dizon v. CA G.R. No. 101929 January 6, 1993
Santos v. Ayon G.R. No. 137013 May 6, 2005
Ganila v. CA G.R. No. 150755 June 8, 2005

D. Limitations of Real Right of Ownership

1. General Limitation
a. police power
b. taxation
c. eminent domain
2. Specific Limitation
3. Limitation From Scattered Provisions of Civil Code
Arts. 431, 432
Arts. 2191, 677-679, 649 & 652, 637, 676, 644, 684-687

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 U.S. v. Causby 328 U.S. 256
Lunod v. Meneses 11 Phil 128

a. Latin Maxim: Sic Utere Tuo Ut Alienum Non Laedas – Art.

431
b. Act in State of Necessity

III. RIGHT OF ACCESSION

A. Concept – Art. 440 – NOT a mode of acquiring ownership but a
mere attribute or an incident of ownership except art 461 (exchange
of ownership of river beds)
B. General Principles of Accession
a. Accessory Follows the Principal
b. No Unjust Enrichment
c. All works, Sowing and Planting are Presumed Made by
Owner and at His Expense, Unless contrary is Proved
d. Accessory Incorporated to Principal such that it cannot be
Separated without Injury to Work Constructed or Destruction
to Plantings, Construction or Works – Art. 447
e. Bad Faith involves Liability for Damages and Other Dire
Consequences
f. Bad Faith of One Party Neutralizes Bad Faith of the Other –
Art. 453
g. Ownership of Fruits – Rule: To Owner of Principal Thing:

Exceptions:

i. Possession in Good Faith

ii. In Usufruct
iii. In Lease
iv. In Antichresis

C. Obligations of Receiver of Fruits to Pay Expenses by 3 rd Person in

Production, Gathering and Preservation – Art. 443
D. Kinds of Accession
1. Accession Discreta (Fruits) – Art. 440
a. Natural – spontaneous products of soil & the young &
other products of animals
b. Industrial – those produced by lands of any kind thru
cultivation or labor
c. Civil – rent of buildings, the price of leases of land and
other property and the amount of perpetual or life
annuities or other similar income

Bachrach v. Seifert, 87 Phil 117

Bachrach v. Talisay Silay, 56 Phil 117

2. Accession Continua

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 a. Over Immovables
1. Artificial or Industrial – Building, Planting, Sowing
(BSP) ---- The rules on accession industrial are inapplicable
to cases where there is a juridical relation existing between the
owner of the land and the B, P or S covering the property in
question; instead their agreement, primarily, and the
provisions of the CC on obligations and contracts including
special contracts that could be relevant, suppletorily, would
govern. (example lease –CC 1678, usufruct CC529)

a. Owner is Builder, Planter, Sower (BPS)

Using Material of Another Art. 447

- In Good Faith
- In Bad Faith
b. BPS Builds, Plants or Sows on Another’s Land
Using His Own Materials – Art. 448-454
BPS in Good Faith – Art. 448

BPS In Bad Faith – Art. 449, 450, 451

i. Options Open to Owner of Land

a. To acquire building, planting and sowing
BPS has right of retention

- retains possession without paying rental

- not entitled to fruits; his rights are the same as an
antichretic creditor
b. To sell land to BP to lease land S
- BP may refuse if value of land considerable more
than BP; then – forced lease by LO and BP

BPS in Bad Faith – Art. 449, 450, 451

ii. Rights of Builder Planter Sower in Bad Faith –

Art. 452, 443
- Landowner in bad faith but BPS in good faith –
Art, 454, 447 – reason for adverting to rule 447

b. BPS builds, plants, sows on another’s land with

materials owned by 3rd person – Art. 455
Nota Bene: good faith does not exclude negligence – Art.
456

Bernardo v. Bataclan, 66 Phil 598

Ignacio v. Hilarion, 76 Phil 605
Sarmiento v. Agana, 129 SCRA 122
Pershing Tan Queto v. CA 148 SCRA 54
Pecson v. CA 244 SCRA 407

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Depra v. Dumlao, 136 SCRA 475
Tecnogas Phils. v. CA 268 SCRA 5
Ortiz v. Kayanan 92 SCRA 146
Geminiano v. CA 259 SCRA 10
Pleasantville Dev’t. Corp. v. CA 253 SCRA 10
Baltazar v. Caridad 17 SCRA 460
Spouses Del Campo v. Abesia 167 SCRA 379
Programme Incorporated v. Province of Bataan 492 SCRA 529
Sulo sa Nayon Inc. v. Nayong Pilipino Foundation 576 SCRA 655
Ballatan v. CA 304 SCRA 37

2. Natural

a. Alluvium – Art. 457 – gives the owners of the lands

adjoining the banks of rivers or streams any accretion
which is gradually received from the effects of the current
of waters

REASON: to provide some kind of compensation to

owners of land continually exposed to the destructive force
of water and subject to various easements.

Republic v. CA 132 SCRA 514

Grande v. CA G.R. No. L-17652 June 30, 1962

c. Avulsion
d. Change of Course of River – Art. 461-463
Baes v. CA, 224 SCRA 562
Binalay v. Manalo 195 SCRA 374

e. Formation of Islands – Art. 461-465

PRESIDENTIAL DECREE NO. 1067

3. Over Movables
a. Conjunction and Adjunction
i. Inclusion or Engraftment
ii. Soldadura or soldering
a. Plumbatura – different metals
b. Ferruminatio – same metal
iii. Tejido or weaving
iv. Escritura or writing
v. Pintura or painting
b. Commixtion and Confusion

Siari Valley Estates v. Lucasan G.R. No. L-7046, August 31, 1955
Santos v. Bernabe, 54 Phil 19

c. Specification

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IV. QUIETING OF TITLE

A. Differences Between Action to Quiet Title and Action:

- To Remove a Cloud
- To Prevent a Cloud
B. Prescription of Action – Imprescriptible if plaintiff is in
possession; if not, prescribes within period for filing accion
publiciana, accion reivindicatoria

Olviga v. CA, G.R. No. 104813 October 21, 1993

Pingol v. CA, G.R. No. 102909 September 6, 1993

C. Who are Entitled to Bring Action? Art 477

D. Notes:
1. There is a cloud on title to real property or any interest to
real property (Art. 476)
2. Plaintiff has legal or equitable title to or interest in the
subject/real property
3. Instrument record claim, etc. must be valid and binding on
its face but in truth and in fact invalid, ineffective, voidable
or unenforceable
4. Plaintiff must return benefits received from defendant
Titong v. Court of Appeals G.R. No. 111141 March 6, 1998

V. CO-OWNERSHIP

A. Definition
The right of common dominion which two or more persons have in a spiritual
part (or ideal portion) or a thing which is not physically divided.

B. Characteristics
1. There is plurality of owners, but only one real right or
ownership;
2. The recognition of ideal shares, defined but not physically
identified.
3. Each co-owner has absolute control over his ideal share;
4. Mutual respect among co-owners in regard to use enjoyment
and preservation of thing as a whole

Pardell v. Bartolome, 23 Phil 450

C. Differences between co-ownership and joint tenancy

D. Differences between partnership and co-ownership
Gatchalian v. Collector, 67 Phil 666

E. Sources of co-ownership

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 a. LAW
i. Cohabitation (Art. 147 & 148, Family Code);
Art. 90 on suppletory application of the
principles of co-ownership to ACP
ii. Purchase (Art. 1452)
iii. Succession (Intestate: Art. 1078; Testate:
Property is given to two or more heirs)
iv. Donation (Art. 753 2nd par.)
v. Chance (Art. 472)
Case: Siari Valley Estate v. Lucasan, supra

vi. Hidden treasure (Art. 438)

vii. Easement of party wall (Art. 658)
viii. Occupation
Punzalan v. Boon Liat, 44 Phil 320

ix. Condominium Law (Sec. 6(c) Rep. Act 4726,

as amended)

b. CONTRACT
i. By agreement (duration of co-ownership, Art.
494)
ii. Universal partnership (Arts. 1778-1780)
iii. Association and societies with secret articles
(Art. 1775)
F. Rights of each co-owner as to thing owned in common:

a. To use the thing according to the purpose intended may

be altered by agreement, express or implied; provided:
i. It is without injury or prejudice to interest of
co-ownership and;
ii. Without preventing the use of other co-
owners, Art. 486
Case: Pardell v. Bartolome, 23 Phil 450

b. To share in the benefits in proportion to his interest,

provided the charges are borne by each in the same
proportion (Art. 485)
- Contrary stipulation in void
- Presumption is that portions are equal unless
contrary is proved
c. Each co-owner may bring an action in ejectment (Art.
487)
d. To compel other co-owner to contribute to expenses for
preservation of the thing or right owned in common and
to payment of taxes (Art. 488)
- Co-owner’s option not to contribute by waiving
his undivided interest equal to amount of
contribution (exception: if waiver prejudicial to co-
ownership)

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 - Requisites before repairs for preservation may be
made or expenses for embellishment or
improvement may be made (Art. 489)

- Effects of failure to notify co-owners

Trinidad v. Ricafort 7 Phil 449

Hibberd v. Estate of McElroy 25 Phil 164

e. To oppose any act of alteration; remedy of other co-

owners re: acts of alteration (Art. 491)
1. Acts of alteration
i. Concept
ii. Distinguished from acts of administration Art.
492
iii. Effect of acts of alteration and remedies of
non-consenting co-owner
Query: Is lease of real property owned in common
an act of alteration? Art. 1647 in relation to Art.
1878(8)

f. To protest against acts of majority which are prejudicial

to minority (Art. 492 par. 3)

Lavadia v. Cosme, 72 Phil 196

Melencio v. Dy Tiao Lay, 55 Phil 100
Tuason v. Tuason, 88 Phil 428

g. To exercise legal redemption – Art. 1620, 1623

Mariano v. CA, 222 SCRA 736

Verdad v. CA, 256 SCRA 593

h. To ask for partition – Art. 494

Ramirez v. Ramirez 21 SCRA 384

Aguilar v. CA, G.R. NO. 76351 October 26, 1993

i. Other cases where right of legal redemption is given –

Arts. 1621, 1622

Halili v. CA G.R. No. 113539, March 12, 1998

Francisco v. Boiser G.R. No. 137677, May 31, 2000

G. Implications of co-owners right over his ideal share:

a. Co-owner has the right:

1. To share in fruits and benefits

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 2. To alienate, mortgage or encumber, and dispose of his
ideal share – (but other co-owners may exercise right of
legal redemption)
3. To substitute another person in the enjoyment of thing
4. To renounce part of his interest to reimburse necessary
expenses incurred by another co-owner (Art. 488)

i. Effect of transaction by each co-owner

i. Limited to his share in the partition
ii. Transferee does not acquire any specific
portion of whole property until partition
iii. Creditors of co-owners may intervene in
partition or attack the same if prejudicial
(Art. 499), except that creditors cannot ask
for rescission even if not notified in the
absence of fraud (Art. 497)

Carvajal v. CA 112 SCRA 237

Pamplona v. Moreto 96 SCRA 775
Castro v. Atienza 53 SCRA 264
Estoque v. Pajimula 24 SCRA 59
Diversified Credit v. Rosado 26 SCRA 470
PNB v. CA 98 SCRA 207

b. Rules on co-ownership not applicable to conjugal

partnership of gains or absolute community of
property.
c. Special rules on ownership of different stories of
a house as differentiated from provisions of
Condominium Law (Act No. 4726)
i. Concept of Condominium
ii. Essential requisites for Condominium
iii. Rights and Obligations of Condominium
owner
Sunset View Condominium v. Judge Campos G.R. No. 52361,
April 27, 1981

d. Extinguishment of co-ownership
i. Total destruction of thing
ii. Merger of all interests in one person
iii. Acquisitive prescription
a. By a third person
b. By one co-owner as against the other
co-owners requisites and
unequivocal acts of:
1. Unequivocal acts of
repudiation of co-ownership
(acts amounting to ouster of
other co-owners) known to

12
 other co-owners and shown by
clear and convincing evidence
2. Open and adverse possession,
not mere silent possession for
the required period of
extraordinary acquisitive
prescription
3. The presumption is that
possession by co-owner is not
adverse

iv. Partition or Division

a. Right to ask for partition at any time
except:
1. When there is a stipulation
against it (not over ten years)
2. When condition of indivision
is imposed by transferor
(donor or testator) not exceed
20 years – Art. 494
3. When the legal nature of
community prevents partition
(party wall)
4. When partition is generally
prohibited by law (e.g.
absolute community of
property)
5. When partition would render
the thing unserviceable (but
the thing may be sold and co-
owners divide the proceeds)
(Art. 494)
- Action for partition will fail if
acquisitive prescription has set in

b. Effect of Partition- Arts. 1091, 543,

1092-1093, 499-501
c. Right of Creditors of Individual Co-
owners Art. 497
d. Procedure for Partition – Rule 69
Rules of Court

5. POSSESSION

a. Definition and Concept (Art. 523)

b. Essential requisites of possession:

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 a. Holding or control of a thing or right
(corpus) consists of either
1. The material or physical either
2. Exercise of a right
3. Constructive possession
Ramos v. Director of Lands, 39 Phil 175
Director v. CA, 130 SCRA 9
b. Intention to possess (animus
possidendi)

c. Degrees of holding or possession

i. Mere holding or possession without title
whatsoever and in violation of the right of
the owner, e.g. possession of a thief or a
usurper of land. –
a. thief, squatter ---without any legal
basis or justification
b. can’t ripen into ownership (Art 1133)
ii. Possession with juridical title but not that
of ownership, e.g. possession of tenant,
depository agent, bailee trustee, lessee,
antichretic creditor. This degree of
possession will never ripen into full
ownership as long as there is no
repudiation of concept under which
property is held.
----predicated on a juridical relation that exists
between the possessor and the owner of the
thing

iii. Possession in the Concept of an Owner..---

Possession with just title or title sufficient
to transfer ownership, but not from the true
owner e.g. possession of a vendee from
vendor who pretends to be the owner. This
degree of possession ripens into full
ownership by lapse of time.
iv. Possession with just title from the true
owner. Possession with a Title in Fee
Simple. Highest degree of possession.
The delivery of possession transfer
ownership, and strictly speaking, is the jus
possidendi
d. Cases of possession:
i. Possession for oneself, or possession
exercised in one’s own name and
possession in the name of another – (Art.
524)
ii. Possession in the concept of an owner and
possession in the concept of a holder with

14
 the ownership belonging to another (Art.
525)
iii. Possession in good faith and possession in
bad faith (Art. 526)
Pleasantville Development Corp. v. CA 253 SCRA 10
supra

a. Mistake upon a doubtful or difficult

question of law as a basis of good
faith.
Kasilag v. Roque G.R. No. 46623, December 17, 1939

e. What things or rights may be possessed.

f. What may not be possessed by private persons.
a. Res communes
b. Property of public dominion
c. Right under discontinuous and/or
non-apparent easement
g. Acquisition of Possession
i. Ways of acquiring possession (Art. 531)
a. Material occupation of the thing
1. The doctrine of constructive
possession
2. Includes constructive delivery:

1. Traditio brevi manu (things already in

transferee’s hands, e.g. under a contract of lease,
then delivered under a sale)
2. Traditio constitutum possessorium (thing
remains in transferor’s hands, e.g. sale, then
retained under a commodatum)
b. Subjection to the action of our will
Includes traditio longa manu and traditio simbolica

c. Proper acts and legal formalities –

refers to the acquisition of possession
by sufficient title, intervivos or
mortis causa, lucrative or onerous.
Example: donations, succession
(testate or intestate), contracts,
judicial writs of possession, writ of
execution of judgments, execution
and registration of public
instruments.

Banco Español Filipino v. Peterson 7 Phil 409

ii. By whom may possession be acquired:

(Art. 532)

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 a. By same person; elements of
personal acquisition
b. By his legal representative; requisites
c. By his agent
d. By any person without any power
whatsoever but subject to
ratification, without prejudice to
proper case of negotiorum gestio
(Arts. 2144, 4129, 2150)
e. Qualifiedly, minors and
incapacitated persons (Art. 525)

iii. What do not affect possession (Arts. 537,

1119)
a. Acts merely tolerated
b. Acts executed clandestinely and
without the knowledge of the
possessor
c. Acts by violence as long as possessor
objects thereto (i.e. he files a case)
(Art. 536)

iv. Rules to solve conflict of possession (Art.

538)

General Rule: Possession cannot be recognized in two different

personalities, except in cases of co-possession by co-possessors
without conflict claims or interest.

In case of conflicting possession – preference is given to:

1. Present possessor or actual possessor

2. If there are two or more possessors, the one longer in
possession
3. If dates of possession are the same, the one who presents a
title
4. If all conditions are equal, the thing shall be placed in
judicial deposit pending determination of possession or
ownership through proper proceedings

h. Effects of Possession
i. In general, every possessor has a right to be
respected in his possession; if disturbed
therein, possessor has right to be protected
in or restored to said possession (Art. 539)
a. Actions to recover possession

16
 1. summary proceedings –
forcible entry and unlawful
detainer. Plaintiff may ask for
writ of preliminary mandatory
injunction may be asked.

- Within 10 days from filing of complaint in

forcible entry (art. 539)
- The same writ is available in unlawful detainer
actions upon appeal (Art. 1674)
2. Accion publiciana (based on
superior right of possession,
not of ownership)
3. Accion reivindicatoria
(recovery of ownership)
4. Action for replevin (possession
or ownership for movable
property)

b. Possessor can employ self-help (Art.

429)
ii. Entitlement to fruits – possessor in good
faith/bad faith
iii. Reimbursement for expenses – possessor in
good faith/bad faith
a. Liability for loss or deterioration of
property by possessor in bad faith.
(Art. 553; 552)
iv. Possession of movable acquired in good (in
concept of owner) is equivalent to title (Art.
559)
- Possessor has actual title which is defeasible only
by true owner.
- One who has lost a movable or has been
unlawfully deprived thereof may recover it
without reimbursement, except if possessor
acquired it at a public sale.

i. Effect of possession in the concept of owner:

a. Possession may be lapsed of time
ripen into full ownership, subject to
certain exceptions
b. Presumption of just title and cannot
be obliged to show or prove it (Art.
541); exception (Art. 1131)
c. Possessor may bring all actions
necessary to protect his possession
except accion reivindicatoria

17
 d. May employ self-help under Art. 429
e. Possessor may ask for inscription of
such real right of possession in the
registry of property
f. Has right to the fruits and
reimbursement for expenses
(assuming he is a possessor in good
faith)
g. Upon recovery of possession which
he has been unlawfully deprived
may demand fruits and damages
h. Generally, he can do on the things
possessed everything that the law
authorizes owner to do until he is
ousted by one who has a better right
i. Possession in good faith and
possession in bad faith (Art. 528)
i. mistake upon a doubtful
or difficult question of
law as a basis of good
faith (Art. 527)
j. Presumption in favor of the possessor:
i. Of good faith until the contrary is proved
(Art. 527)
ii. Of continuity of initial good faith in which
possession was commenced or possession
in good faith does not lose this character
except in the case and from the moment
possessor became aware or is not unaware
of improper or wrongful possession (Art.
528)
Cordero v. Cabral, 122 SCRA 532

iii. Of enjoyment of possession in the same

character in which possession was required
until contrary is proved (Art. 529)

iv. Of non-interruption of possession in favor

of present possessor who proves
possession at a previous time until the
contrary is proved (Art. 554) Arts. 1120-
1124
v. Of continuous possession or non-
interruption of possession of which he was
wrongfully deprived for all purposes
favorable to him (Art. 561)
vi. Other presumptions with respect to specific
properties or property rights:
1. Of extension of possession of
real property to all movables

18
 contained therein so long as it
is not shown that they should
be excluded; exceptions (Art.
426)
2. Non-interruption of possession
of hereditary property (Art.
533 & 1078)
3. Of just title in favor of
possession in concept of owner
(Art. 541; but see: Art. 1141)
k. Possession may be lost by:
a. Abandonment
b. Assignment, either onerous or
gratuitous
c. Destruction or total loss of thing or it
goes out of commerce
d. Possession by another; if possession
has lasted longer that one year; real
right of possession not lost until after
ten (10) years
- subject to Art. 537 (acts merely tolerated, etc.)

VII. USUFRUCT

A. Concept – (Art. 562)

B. Historical considerations

C. Characteristic of Usufruct

D. Usufruct distinguished from lease; from servitude

E. Classes of Usufruct

1. By origin:

a. Voluntary
b. Legal – Art. 321 cc; Art. 226 Family Code
c. Mixed
2. By person enjoying right of usufruct

a. Simple

b. Multiple

ii. Simultaneous
iii. Successive
Limitation on successive usufruct (Art. 756, 863 & 869)

3. By object of usufruct

a.Rights – (Art. 574)

19
 b. Things
1. Normal
2. Abnormal, irregular or quasi – usufruct
4. By the extent of the usufruct

a. As to the fruits

1. Total
2. Partial (Art. 598)
b. As to object

i. Singular
ii. Universal (Art. 595)
- subject to provisions of Arts. 758 & 759

5. By the terms of usufruct (Art. 564)

a. Pure
b. Conditional
c. With a term (period)

F. Rights of Usufructuary

1. As to the thing and its fruit

a. Right to possess and enjoy the thing itself, its fruits and
accessions
- Fruit consist of natural, industrial and civil fruits
- As to hidden treasure, usufructuary is considered
a stranger (Art. 566; 436)
- Fruits pending at the beginning of usufruct (Art.
567)
- Civil fruits (Arts. 569, 588)
b. Right to lease the thing (Art. 572)

- Limitations
- Liability of usufructuary – lessor (Art. 590)
- Exceptions to right of leasing the thing
Fabie v. David, 75 Phil 536

c. Right to improve the thing (Art. 579)

2. As to the legal right of usufruct itself

a. Right to mortgage; right of usufruct (Art. 572)

b. Right to alienate the usufruct, except in purely personal

usufructs, or when title constituting it prohibits the same

G. Rights of the naked owner

1. At the beginning of usufruct (obligations of usufructuary at

the beginning of usufruct)

20
 2. During the usufruct:
b. Retains title to the thing or property
c. He may alienate the property
Limitations (Art. 581)

H. Obligations of Usufructuary
1. At the beginning of usufruct or before exercising the
usufruct
a. to make inventory (Art. 583)
1. Requisites of inventory

i. Immovables described
ii. Movables appraised

2. Exception to requirement of inventory

i. no one will be injured thereby (Art. 585)

ii. title constituting usufruct excused the making of
inventory
iii. title constituting usufruct already makes an
inventory
b. To give a bond for the faithful performance of duties as
usufruct
1. No bond are required in the following:

i. No prejudice would result (Art. 585)

ii. Usufruct is reserved by donor (Art. 584)
iii. Title constituting usufruct excused
usufructuary
2. Effect of filing a bond (Art. 588)
3. Effect of failure to give bond (Art. 586, 599)
2. During the usufruct

a. To take care of the thing like a good father or a family (Art.

589)

Effect of failure to comply with obligation (Art. 610)

b. To undertake ordinary repairs (Art. 592)

- concept of ordinary repairs

c. To notify owner of need to undertake extra-ordinary
repairs (Art. 593)
1. Concept of extraordinary repairs
2. Naked owner obliged to undertake them but
when made by owner, usufructuary pays legal
interest on the amount while usufruct lasts.
(Art. 594, par. 1)

21
 3. Naked owner cannot be compelled to
undertake extra-ordinary repairs
a. If indispensable and owner fails to
undertake extraordinary repairs made
be made by usufructuary; repairs
usufructuary right (Art. 594, par. 2)
d. To pay for annual charges and taxes on the fruits
Board of Assessment Appeals of Zamboanga del Sur v. Samar Mining
Company Inc. 37 SCRA 734

e. To notify owner of any act detrimental to ownership

(Art. 601)

NHA v. CA GR. No. 198840 April 13, 2005

f. To shoulder the costs of litigation re usufruct (Art. 602)

g. To answer for fault or negligence of alienee, lessee, or
agent of usufructuary (Art. 590)

I. At the time termination of the usufruct -- To deliver the thing in

usufruct to the owner in the condition in which he has received it,
after undertaking ordinary repairs
Exception: abnormal usufruct

J. Special Cases of Usufruct

1. Usufruct over a pension or periodical income (Art. 570)
2. Usufruct of property owned in common (Art. 582)
3. Usufruct of head of cattle (Art. 591)
4. Usufruct over vineyards and woodlands (Arts. 575-576)
5. Usufruct on a right of action (Art. 578)
6. Usufruct of mortgaged property (Art. 600)
7. Usufruct over an entire patrimony (Art. 598)
- Liability of usufructuary for debts
8. Usufruct over deteriorable property (Art. 578)
9. Usufruct over consumable property (or quasi-usufruct) (Art.
574)
K. Extinguishment of Usufruct (Art. 603)
1. Death of usufructuary
Exception:

i. unless a contrary intention clearly appeals

2. Expiration of period or fulfillment of resolutory condition
imposed on usufruct by person constituting the usufruct
Baluran v. Navarro 79 SCRA 309

a. time that may elapse before a third person attains a

certain age, even if the latter dies before period expires –
unless granted only in consideration of his existence
(Art. 606)
3. Merger of rights of usufruct and naked ownership in one
person

22
 4. Renunciation of usufruct
a. Limitations
- Must be express
- If made in fraud of creditors, waiver may be
rescinded by them through action under Art. 1381
5. Extinction or loss of property
a. If destroyed property is insured before the termination
of the usufruct (Art. 608)
1. When insurance premium paid by owner
and usufructuary (Art. 608, par. 1)
a. If owner rebuilds, usufruct subsists
on new building
b. If owner does not rebuild interest
upon insurance proceeds paid to
usufructuary
2. When the insurance taken by owner only
because usufructuary refuses (Art. 608, par.
2)
a. Owner entitled to insurance
money (no interest paid to
usufructuary)
b. If he does not rebuild, usufruct
continues over remaining land
and/or owner may pay interest
on value of both (Art. 607)
c. If owner rebuilds, usufruct does
not continue on new building, but
owner must pay interest on value
on land and old materials
3. When insurance taken by usufructuary
only depends on value of usufructuary’s
insurable interest (not provided for in Civil
Code)
b. Insurance proceeds to usufructuary
c. No obligation to rebuild
d. Usufruct continues on the land
e. Owner does not share in insurance proceeds
1. If destroyed property is not insured (Art. 607)
a. If building forms part of an immovable
under usufruct
b. If owner does not rebuild, usufruct
continues over the land and materials
c. If owner rebuilds, usufructuary must allow
owner to occupy the land and to make use
of materials, but value of both and land
and materials

VI. Termination of right of person constituting the usufruct

VII. Prescription

23
 Cases covered: If third party acquires ownership of
thing or property in usufruct or right of ownership lost
through prescription or right of usufruct not began
within prescriptive period, or if there is a tacit
abandonment or non-user of thing held in usufruct for
required period.

VIII. What do not cause extinguishment of usufruct

A. Expropriation of thing in usufruct (Art. 609)
B. Bad use of thing in usufruct (Art. 810) - Owner’s right
C. Usufruct over a building (Art. 607, 608)

IX. EASEMENT OR SERVITUDES

A. Definition – Easement or real servitude is a real right which burdens
a thing with a presentation consisting of determinate servitudes for
the exclusive enjoyment of a person who is not its owner or of a
tenement belonging to another, or, it is the real right immovable by
nature i.e. land and buildings, by virtue of which the owner of the
same has to abstain from doing or to allow somebody else to do
something in his property for the benefit of another thing or person.
B. Essential feature of easements/real servitudes/praedial servitudes:
1. It is a real right, i.e., it gives an action in rem or real action
against any possessor of servient estate.
2. It is a right enjoyed over another property (jus in re aliena)
i.e., it cannot exist in one’s own property (nulli res sua
servit).
3. It is a right constituted over an immovable by nature (Land
and buildings), not over movables.
4. It limits the servient owner’s right of ownership for the
benefit of the dominant estate. Right of limited use, but no
right to possess servient estate. Being an abnormal limitation
of ownership, it cannot be presumed.
5. It creates a relation between tenements.
6. It cannot consist in requiring the owner of the servient estate
to do an act, (servitus in faciendo consistere nequit) unless
the act is accessory to a praedial servitude (obligation
propter rem).
7. Generally, it may consist in the owner of the dominant estate
demanding that the owner of the servient estate refrain from
doing something (servitus in non faciendo), or that the latter
permit that something be done over the servient property
(servitus in patendo), but not in the right to demand that the
owner of the servient estate do something (servitus in
faciendo) except if such act is an accessory obligation to a
praedial servitude (obligation propter rem).
8. It is inherent or inseparable from estate to which they
actively or passively belong (Art. 617)
9. It is intransmissible, i.e., it cannot be alienated separately
from the tenement affected, or benefited.

24
 10. It is indivisible. (Art. 616)
11. It has permanence, i.e., once it attaches, whether used or not,
it continues and may be used at anytime.
C. Classification of Servitudes
1. As to recipient of benefits:
a. Real or Praedial
b. Personal (Art. 614) [But note that under Roman Law,
usufruct together with usus habitatio, and operae
servorum were classified as personal servitudes]
2. As to course or origin:
a. Legal, whether for public use or for the interest of
private persons (Art. 634)
b. Voluntary
3. As to its exercise (Art. 615)
a. Continuous
b. Discontinuous

4. As indication of its existence (Art. 615)

a. Apparent
b. Non-apparent
5. By the object or obligation imposed (Art. 616)
a. Positive
b. Negative (prescription start to run from service of
notarial prohibition)
D. General rules relating to servitudes
1. No one can have a servitude over his own property (nulli res
sua servit)
2. A servitude cannot consist in doing (servitus in faciendo
consistere nequit)
3. There cannot be a servitude over another servitude (servitus
servitutes esse non potest)
4. A servitude must be exercised civiliter, i.e., in a way least
burdensome to the owner of the land.
5. A servitude must have a perpetual cause.
E. Modes of Acquiring Easements
North Negros v. Hidalgo 63 Phil 664

1. By title-juridical act which give rise to the servitude, e.g. law,

donations, contracts or wills.
Dumangas v. Bishop of Jaro, 34 Phil 541

a. If easement has been acquired but no proof of existence

of easement available, and easement is one that cannot
be acquired by prescription – then
i. May be cured by deed of recognition by owner of
servient estate, or
ii. By final judgment, or
iii. Existence of an apparent sign considered a title (Art.
624)
Amor v. Florentino, 74 Phil 404

25
 2. By prescription
Ronquillo v. Roco, 103 Phil 84

F. Rights and Obligations of Owners of Dominant and Servient Estates

1. Right of owner of dominant estate
a. To use the easement (Art. 626) and exercise all rights
necessary for the use of the (Art. 625)
b. To do at his expense, all necessary works for the use and
preservation of the easement (Art. 627)
c. In a right of way, to ask for change in width of easement
sufficient for needs of dominant estate (Art. 651)
2. Obligations of the owner of Dominant Estate
a. To use the easement for benefit of immovable and in the
manner originally established (Art. 626)
b. To notify owner of servient estate before making repairs
and to make repairs in a manner least inconvenient to
servient estate (Art. 627)
c. Not to alter easement or render it more burdensome
(Art. 627)

Valderrama v. North Negros, 48 Phil 482

d. To contribute to expenses of works necessary for use and

preservation of servitude, if there are several dominant
estates, unless be renounces his interest (Art. 628)
3. Rights of owner of servient estate
a. To retain ownership and use of his property (Art. 630)

Pilar Dev. Corp. v. Dumadag G.R. No. 194336 March 11, 2013

b. To change the place and manner of use of the easement

(Art. 629, par. 2)
4. Obligations of the servient estate
a. Not to impair the use of the easement (Art. 628, par. 1)
b. To contribute proportionately to expenses if he uses the
easement (Art. 628, par. 2)

G. Modes of Extinguishment of Easements:

1. Merger – must be absolute, perfect and definite, not merely
temporary
2. By non-user for 10 years
a. Computation of the period
(1) discontinuous easements; counted from the
day they ceased to be used.
(2) continuous easements: counted from the day
an act adverse to the exercise took place.
b. The use by co-owner of the dominant estate bars
prescription with respect to the others (Art. 633)
c. Servitudes not yet exercised cannot be extinguished by
non-user.

26
 3. Extinguishment by impossibility of use
4. Expiration of the term or fulfillment of resolutory condition
5. Renunciation of the owner of dominant estate – must be
specific clear, express (distinguished from non-user)
6. Redemption agreed upon between the owners
7. Other causes not mentioned in Art. 631
a. Annulment or rescission of the Title constituting the
easement
b. Termination of the right of grantor
c. Abandonment of the servient estate
d. Eminent domain
e. Special cause for extinction of legal rights of way; if right
of way; if right of way no longer necessary
H. Legal Easements
1. Law Governing Legal Easements
a. For public easements
1. special laws and regulations relating thereto, e.g., Pres.
Decree 1067, P.D. 705
2. by the provisions of Chapter 2, Title VII, Book II New
Civil Code
b. For private legal easements
1. by agreement of the interested parties whenever
the law does not prohibit it and no injury is
suffered by a third person
2. by the provisions of Chapter 2, Title VII Book II

2. Private Legal Easements provided for by the New Civil

Code
a. those established for the uses of water or easements
relating to waters (Art. 637-648)
1. Natural drainage of waters (Art. 637)
Case: Ongsiako v. Ongsiako
2. Easements on lands along riverbanks (Art.
638), see Water Code
3. Abutment of a dam (Art. 639)
4. Aqueduct (Art. 642-646)
5. Drawing waters and watering animals (Art.
640)
6. Stop lock or sluice gate (Art. 649)

b. The easement of right of way (Arts. 649-657)

Quimen v. CA, G.R. No. 112331, May 29, 1996

David Chan v. CA, 268 SCRA 677
La Vista Assn. v. CA, G.R. No. 95252, Sept. 5, 1997
Vda. De Beltazar v. CA, 245 SCRA 333
Calimoso v. Roullo January 25, 2016 G.R. No. 198594

c. The easement of party walls (Arts. 658-666)

d. The easement of light and view (Art. 667-673)

27
 e. The easement of drainage of buildings (Arts. 674-676)
f. The easement of distance for certain constructions and
plantings (Arts. 677-681)
g. The easement against nuisances (Art. 682-683)
h. The easement of lateral and subjacent support (Arts. 684-
687)

BOOK III – DIFFERENT MODES OF ACQUIRING OWNERSHIP

1. MODE AND TITLE DIFFERENTIATED

2. MODES OF ACQUIRING OWNERSHIP
A. Original Modes – which produce the acquisition of ownership
independent of any pre – existing right of another person, hence,
free from any burdens or encumbrances.
i. Occupation
ii. intellectual creation
B. Derivative Modes – based on a right previously held by another
person, and therefore, subject to the same characteristic powers,
burdens, etc. as when held by previous owner.
1. Law – e.g. registration under Act 496; estoppel of title
under Art. 1434 CC; marriage under absolute
community of property system; hidden treasure;
accession (Art. 445); change in river’s course (Art. 461);
accession continua over movables (Art. 466); Arts. 681,
1456 CC, and Art. 120 FC.
i. Donation
ii. Succession
iii. Prescription
iv. Tradition
Requisites:

1.) Pre-existence of right in estate of grantor

2.) Just cause or title for the transmission
3.) Intention – of both grantor and grantee
4.) Capacity – to transmit and to acquire
5.) An Act giving it outward form, physically,
symbolically, or legally.
Legal Maxim: “Non nudis pactis, sed traditione, dominia rerum transferentur”
(Not by mere agreement, but by delivery, is ownership
transferred).

Kinds of Tradition:

a. Real Tradition
b. Constructive Tradition
i. Symbolical delivery
ii. Delivery of Public Instrument
iii. Traditio Longa manu
iv. Traditio Brevi manu
v. Traditio Constitutum Possessorium
vi. Quasi – Tradition

28
 vii. Tradition by operation of law
3. OCCUPATION
A. Not applicable to ownership of a piece of land (Art. 714 CC)
B. Privilege to hunt and fish regulated by special law (Art. 715)
C. Occupation of a swarm of bees or domesticated animals (Art. 716) –
see also Art. 560
D. Pigeons and fish (Art. 717)
E. Hidden treasure (Art. 718) see also Arts. 438-439
F. Lost movables; procedure after finding lost movables (Art. 719-720)

4. INTELLECTUAL CREATION – Intellectual Property Code (Rep. Act No.

8293)
Intellectual Property Rights (IPR):
a. Copyright & related rights
b. Trademarks & service marks
c. Geographic indications
d. Industrial designs
e. Patents
f. Topographies of integrated circuits
g. Rights of performers, producers of sound recordings & broadcasting
orgs.
h. Protection of undisclosed information
i. Laws repealed by the Intellectual Property Code (Sec. 239)

All Acts and part of Acts inconsistent with Intellectual Property

Code, particularly:

- Pres. Decree No. 49 – Intellectual Property

Decree, including PD 285 as amended
- Rep. Act No. 165, as amended – Patent Law
- Rep. Act No. 166, as amended
- Arts. 188 & 189 of the Revised Penal Code

DONATION

I. Nature of Donation – A bilateral contract creating unilateral obligations on

donor’s part
II. Requisites of donation:
a. Consent and capacity of the parties
b. Animus donandi (causa)
c. Delivery of thing donated
d. Form as prescribed by law
Note: There must be impoverishment (In fact) of donor’s patrimony and
enrichment on part of donee)

III. Kinds of donations

1. As to its taking effect
a. Inter vivos (Arts. 729, 730, 731)

29
 b. Mortis causa (Art. 728)
c. Propter nuptias (Arts. 82, 87, Family Code)
2. As to cause or consideration:
a. simple
b. renumeratory
c. onerous – (imposes a burden inferior in to value property
donated)
i. improper-burden equal in value to property donated
ii. sub-modo or modal – e.g. imposes a prestation upon
donee as to how property donated will be applied
(see: Art. 882 C.C.)
iii. mixed donations – negotium mixtum cum donatione
e.g. sale for price lower than value of property
Lagazo v. Court of Appeals 287 SCRA 24

3. As to effectivity or extinguishment
a. pure
b. conditional (Art. 730, 731)
i. effect of an impossible condition
c. with a term
4. Importance of classification
a. as to form
b. as to governing rules
c. as to impossible conditions – Art. 727, 1183
5. Characteristics of a donation mortis causa
a. convey no title or ownership before donor’s death
b. before donor’s death transfer is revocable
c. transfer is void if donor survives donee

6. Distinction between donation mortis causa and donation inter vivos

a. what is important is the time of transfer of ownership, even
if transfer of property donated may be subject to a condition
or a term.
b. Importance of classification – validity and revocation of
donation.

Cases: Bonsato v. Court of Appeals, 95 Phil 481

Gestopa v. Court of Appeals, 342 SCRA 105
Austria-Magat v. CA, G.R. No. 106755 February 1, 2002

IV. Who may not give or receive donations – Art. 735, 737, 738, 742, 742
V. Who may give or receive donations – Art. 736, 739 (1027, 1032), 740, 743,
744
Vitug v. Court of Appeals, 183 SCRA 755
Hemedes v. Court of Appeals, 316 SCRA 347
VI. Acceptance of donation
a. who may accept (Art. 745, 747)
b. time of acceptance of donation inter vivos (Art. 746) –
donation mortis causa
Lagazo v. Court of Appeals 287 SCRA 24

30
VII. Form of donations
a. personal property (Art. 748)
b. real property (Art. 749)
c. rules in Art. 748 and 749 not applicable to:
i. onerous donations
ii. modal donations
iii. mortis causa donations
iv. donations propter nuptias
Sumipat v. Banga, G.R. No. 155810 August 13, 2004
C.J.-Yulo & Sons v. Roman Catholic Bishop of San Pablo, Inc. G.R. No. 133705
March 31, 2005

VIII. What may be donated

1. All present property, or part thereof, of donor
a. provided he reserves, in full ownership or usufruct,
sufficient means for support of himself and all relatives
entitled to be supported by donor at time of acceptance (Art.
750)
b. provided that no person may give or receive by way of
donation, more than he may give or receive by will (Art. 752)
also, reserves property sufficient to pay donor’s debts
contracted before donation, otherwise, donation is in fraud
of creditors, (Arts. 759, 1387)
If donation exceeds the disposable or free portion of his estate,
donation is inofficious.

Exceptions:

a. donations provided for in marriage settlements between

future spouses (Art. 84; Family Code; Art. 130 C.C.) –
not more than 1/5 of present property.
b. donations propter nuptias by an ascendant consisting of
jewelry, furniture or clothing not to exceed 1/10 of
disposable portion (Art. 1070)
2. What may not be donated
a. future property – meaning of future property (Art. 751)
exception: marriage settlements of future spouses only in
event of death to extent laid down in Civil Code re:
testamentary succession (Art. 130 C.C.; Art. 84 Family Code)

IX. Effect of Donation

A. In general
1. Donee may demand actual delivery of thing donated.
2. Donee is subrogated to rights of donor in the property
donated (Art. 754)
3. Donor not obliged to warrant things donated, except in
onerous donations in which case donor is liable for eviction
up to extent of burden (Art. 754)
4. Donor is liable for eviction or hidden defects in case of bad
faith on his part (Art. 754)

31
 5. In donations propter nuptias donor must release property
donated from mortgages and other encumbrances, unless
contrary has been stipulated – (Art. 131 C.C.)
a. Donations propter nuptias of property subject to
encumbrances are valid. Effect of foreclosure (Art. 85
F.C.)
6. Donations to several donees jointly – no right of accretion,
except:
a. Donor provides otherwise
b. Donation to husband and wife jointly with right of
accretion (jus accrescendi), unless donor provides
otherwise (Art. 753)
B. Special provisions

1. Reservation by donor of power to dispose (in whole or in part)

or to encumber property donated (Art. 755)
2. Donation of naked ownership to one donee and usufruct to
another (Art. 756 CC)
3. Conventional reversion in favor of donor or other person (Art.
757)
4. Payment of donor’s debt – (Art. 758)

a. If expressly stipulated
1. donee to pay only debts contracted before the
donation, unless specified otherwise – but in no
case shall donee be responsible for debts
exceeding value of property donated, unless
clearly intended.
b. If there is no stipulation – donee answerable only for
donor’s debt only in case of donation is in fraud of
creditors

X. Revocation and Reduction of Donations

A. Revocation distinguished from reduction of donations
B. Causes of Reduction/Revocation
1. Inofficiousness of donation (Art. 752, 771, 773; Art. 911 & 912
also govern reduction)
a. Who may ask for reduction (772)
b. Rule applied – If disposable portion not sufficient to
cover two or more donations (Art. 773)
2. Subsequent birth, reappearance of child or adoption of minor by
donor (Art. 760)

C. Revocation (only)

1. Ingratitude (Art. 765)

a. Causes
b. Time to file action for revocation (Art. 769)
c. Who may file (Art. 770)

32
 d. Effect of revocation
i. On alienation and mortgages (Art. 766, 767)

Eduarte v. Court of Appeals 253 SCRA 391

Noceda v. Court of Appeals 313 SCRA 504

2. Violation of condition
a. Prescription of action
b. Transmissibility of action
3. Effect of revocation or reduction – (Art. 762, 764 par. 2, 767)
4. Effect as to fruits (Art. 768)

LEASE

1. General characteristics (of every lease)

i. temporary duration
ii. onerous
iii. price is fixed according to contract duration

2. Kinds of Leases
a. Lease of things – movables and immovables
b. Lease of work or contract of labors (Arts. 1700-1712)
c. Lease of services
i. household service
ii. contract for a piece of work (Arts. 1713-1731)
iii. lease of services of common carriers (Art. 1732-1763)
3. Lease of Things
a. Concept – (Art. 1643)
b. Consumable things cannot be the subject matter of lease,
except: (Art. 1645)
i. consumable only for display or advertising (lease ad
pompam et ostentationem)
ii. goods are necessary to an industrial establishment, e.g.
coal in a factory
c. Special characteristics of lease of things:
i. essential purpose is to transmit the use and enjoyment of a
thing
ii. consensual
iii. onerous
iv. price fixed in relation to period of use or enjoyment
v. temporary
d. Lease distinguished from sale, usufruct, commodatum
e. Period of lease – cannot be perpetual
i. definite period – not more than 99 years
ii. indefinite period:
a. rural land (Art. 1682)
b. urban land (Art. 1687)
f. Assignment of lease (Art. 1649)
g. Sublease (Art. 1650)

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 i. House Rental Law (R.A. 877) now RA 9161
ii. obligation of sublessee to lessor (Art. 1651)
a. for rents (Art. 1652)
h. Rights and obligations of lessor and lessee:
i. obligations of lessor (Art. 1654, 1661)
ii. obligations of lessee (Art. 1657, 1662, 1663, 1665, 1668,
1667)
iii. right of lessee to suspend payment of rentals (Art. 1658)
iv. right to ask for rescission (Art. 1659, 1660)
v. lessor not obliged to answer for mere act of trespass by a
third person (Art. 1664)
i. Grounds for ejectment of Lessee by Lessor (Art. 1673) (Note:
the grounds under the RA 1961 Rental Reform Act of 2002,
RA 9653 & RA 9341; Query. Are they still effective?),
j. Right to ask for writ of preliminary mandatory injunction in
unlawful detainer cases (Art. 1674; 539 par. 2)
k. Implied extension of lease (Arts. 1670, 1682, 1687, 1675)
l. Right of purchaser of leased land (Art. 1676, 1677)
m. Useful improvements in good faith made by lessee (Art.
1678)
n. Special provisions for leases of rural lands (Art. 1680-1685)
o. Special provisions for leases of urban lands (Art. 1686-1688)

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