CIVIL LAW employee refuses or neglects, without just
cause, to perform his official duty may file an
Partnership (Articles 1767—1867), Credit
Transactions (Articles 2047— 2092; 2124—
2131; and 2140—2141), except for Loan and
Deposit; and
Concurrence and Preference of Credits
(Articles 2236—2251) will be part of
Commercial Law. Civil Code provisions on
Labor will not be covered in Civil Law. The
procedure for foreclosure of mortgage (real
and personal) will be covered in Remedial
Law.
1.
GENERAL
A. When law takes effect
B. Retroactivity of laws
C. Mandatory or prohibitory laws
D. Waiver of rights
E. Repeal of laws
F. Conflict of laws
-The Apostille Convention on Authentication
of Documents took effect in the Philippines on
May 14, 2019. This means that the DFA will
no longer issue Authentication Certificates
and instead will affix an Apostille to public
documents for use abroad as proof of
authentication in Apostille-contracting parties.
An apostille certifies “the authenticity of the
signature, the capacity in which the person
signing the document has acted and, where
appropriate, the identity of the seal or stamp
which it bears
G. Human relations
-The principal rights protected under this
provision are the following: 1. The right to
personal dignity 2. The right to personal
security 3. The right to family relations 4. The
right to social intercourse 5. The right to
privacy 6. The right to peace of mind; not
exclusive merely examples of acts violative of
a person’s rights to dignity, personality,
privacy and peace of mind. Other “similar
acts” are also covered within the scope of the
article
-Art. 27, CC. Any person suffering material or
moral loss because a public servant or
action for damages and other relief against the
latter, without prejudice to any disciplinary
administrative action that may be taken.
-Art. 32, CC. Any public officer or employee,
or any private individual, who directly or
indirectly obstructs, defeats, violates or in any
manner impedes or impairs any of the
following rights and liberties of another
person shall be liable to the latter for damages
-Art. 34, CC. When a member of a city or
municipal police force refuses or fails to
render aid or protection to any person in case
of danger to life or property, such peace
officer shall be primarily liable for damages,
IN
and the city or municipality shall be
subsidiarily responsible therefor. The civil
action herein recognized shall be independent
of any criminal proceedings, and a
preponderance of evidence shall suffice to
support such action.
H. Applicability of penal laws
11. PERSONS AND FAMILY RELATIONS
A. PERSONS
1. Kinds of Persons
-7 months or more is considered born if alive
(e.g. can breathe independently, etc. upon
delivery)
-Less than 7 months considered born If alive
after completion of 24 hours from delivery
2. Capacity to act
3. Domicile and residence of persons-While
domicile is permanent (there is intent to
remain), residence is temporary and may be
changed anytime (there is no necessary intent
to remain
B. RIGHTS AND OBLIGATIONS OF
COUPLES m INTIMATE RELATIONSHIPS
(REP. ACT No. 9262)
C. MARRIAGE
1. Requisites
2. Marriages celebrated abroad
3. Foreign divorce
4. Void marriages
5. Voidable marriages
6. Unmarried cohabitation
D. LEGAL SEPARATION
1. Grounds
2. Defenses
3. Procedure
-A petition for legal separation may be filed
only by the husband or the wife
-The petition shall be filed in the Family Court
of the province or city where the petitioner or
the respondent has been residing for at least
six months prior to the date of filing “or in the
case of a non-resident respondent, where he
may be found in the Philippines, at the
election of the petitioner; An action for legal
separation shall in no case be tried before six
months shall have elapsed since the filing of
the petition
4. Effects of filing petition
5. Effects of pendency
6. Effects of decree of legal separation
7. Reconciliation
8. Effect of death of one of the parties
E. RIGHTS AND OBLIGATIONS-148: salaries and wages are separately owned
BETWEEN HUSBAND AND WIFE
F. PROPERTY RELATIONS OF THE
SPOUSES
1. Marriage settlements
2. Donations by reason of marriage
3. Void donations by the spouses
4. Absolute community of property
-The community property consists of all the
property owned by the spouses at the time of
the celebration of the marriage, and those
either one or both of them acquired during the
marriage
-exc: Properties acquired before the marriage,
for those with legitimate descendants by a
former marriage; Properties acquired during
the marriage by a gratuitous title Except:
When expressly provided by the donor or
testator that the property shall form part of the 1. Legitimate children
ACP; Properties for personal use i.e. wearing
apparel, toilet articles, eyeglasses Except: 1.
Luxurious jewelry and those of special value
that increase in value over time (partakes of
the nature of an investment)
5. Conjugal partnership of gains
-However, the spouses also place in a
common fund the proceeds, products, fruits
and income of their separate property and
those acquired by either or both spouses
through their efforts or by chance
-EXC: Property brought into the marriage by
each spouse as his/her own, Property acquired
by right of redemption, by barter, or by
exchange with property belonging to either
spouse, *same gratuitous exc in ACP,
Property purchased with exclusive money of
either spouse, Property purchased by
installment, paid partly with conjugal funds
and partly with exclusive funds, if full
ownership was vested before the marriage
6. Regime of separation of property
7. Judicial separation of property
8. Property regime of unions without marriage
-147: salaries and wages are owned in equal
shares
-properties by both through work and
industry: co-ownership
-properties acquired while living
together: presumed to be owned in equal
-properties by both through work and
industry: owned in common in proportion to
their respective contribution
-properties acquired while living
together: No presumption of joint acquisition.
When there is evidence of joint acquisition but
none as to the extent of actual contribution,
there is a presumption of equal sharing.
G. THE FAMILY
1. Concept of family
2. Effects on legal disputes
3. Family home
H. PATERNITY AND FILIATION
-action to claim filiation for legitimate
children: a. The child can bring the action
during his or her lifetime b. If the child dies
during minority or in a state of insanity, such
action shall be transmitted to his heirs, who
shall have a period of five years within which
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 to institute the action. c. The action 5. Effects of parental authority over the child's
commenced by the child shall survive property
notwithstanding the death of either or both of 6. Suspension or termination of parental
the parties. authority
2. Proof of filiation 7. Solo parents (Rep. Act No. 8972)
3. Illegitimate children
-ACTION FOR CLAIMING L. EMANCIPATION
ILLEGITIMATE FILIATION Illegitimate l. Cause of emancipation
children may establish their illegitimate 2. Effect of emancipation
filiation in the same way and on the same -Effects of Emancipation General: •
evidence as legitimate children. a. For actions Termination of parental authority over the
based on primary evidence, the same periods person and property of the child emancipated •
stated in Art. 173 of FC apply - lifetime of the The person emancipated becomes qualified
child, will not be extinguished by death of and responsible for all acts of civil life.
either parties b. For actions based on Exception: • Persons possessing parental
secondary evidence, the action may only be authority over the emancipated individual are
brought during the lifetime of the alleged needed to give their respective parental
parent. consent until the emancipated individual is at
4. Action to impugn legitimacy the age of twenty-one. • Nothing shall be
5. Legitimated children construed to derogate the duty and
responsibility of parents and guardians for
I. ADOPTION children and wards below twenty-one years of
1. Domestic Adoption Law age mentioned in the second and third
2. Law on Inter-Country Adoption paragraphs of Article 2180 of the Civil Code.
• Other exceptions established by existing
J. SUPPORT laws in special cases
1. What it compromises-Support consists of M. SUMMARY JUDICIAL PROCEED
everything indispensable for sustenance, IN THE FAMILY CODE
dwelling, clothing, medical attendance,
education and transportation, in keeping with N. USE OF SURNAMES
the financial capacity of the family
2. Who are obliged to give support O. ABSENCE
3. Source of support l. Provisional measures in case of absence
4. Order of support 2. Declaration of absence
5. Amount of support 3. Administration of the property of the absentee
6. Manner and time of payment 4. Presumption of death
7. Renunciation and termination
8. Support pendente lite P. CIVIL REGISTRAR
9. Procedure in applications for support
11. PROPERTY
K. PARENTAL AUTHORITY
l. General provisions A. CLASSIFICATION OF PROPERTY
2. Substitute parental authority-In case of death, l. Immovables
absence, or unsuitability of the parents by 2. Movables
grandparents etc.
3. Special parental authority
B. OWNERSHIP
4. Effect of parental authority over the child's
1. Bundle of rights
person
a. Actions to recover ownership and possession
of real property and its distinctions

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b. Actions for recovery of possession of movable
property
2. Distinction between real and personal rights
3. Modes of acquiring ownership
4. Limitations of ownership 1 3. Rights of co-owners
C. ACCESSION
l . Right to hidden treasure
2. Rules of accession
a. For immovables
b. For movables
D. QUIETING OF TITLE
l. Requisites
2. Distinctions between quieting title and
removing/preventing a cloud- The purpose of
quieting is to put a stop to vexatious litigation
in relation to the property. Removing a cloud
pertains to the cancellation, delivery, removal
or release of an encumbrance which can be
considered a claim re: plaintiff’s title.
3. Prescription/non-prescription of action
- When the plaintiff is in possession of the
property, the action to quiet title does not
prescribe.
- When the plaintiff is NOT in possession of
the real property, the action to quiet title may
prescribe depending upon the right of action
filed by the plaintiff: 1. 10 years – if plaintiff
is a possessor with a real right, i.e. accion
publiciana, or if action is for reconveyance on
the basis of a constructive trust under Art.
1456, CC 2. 30 years – if plaintiff is the owner
of real property
- An action to quiet title may be defeated by a
claim of ordinary or extraordinary acquisitive
prescription by the defendant
E. CO-OWNERSHIP- There is co-
ownership whenever the ownership of
an undivided thing or right belongs to
different persons
l. Characteristics of co-ownership- 1. There
are 2 or more co-owners. 2. There is a single
object which is not materially or physically
divided and his ideal share of the whole. 3.
There is no mutual representation by the co-
owners. 4. It exists for the common enjoyment
of the co-owners. 5. It has no distinct legal
personality. 6. It is a trust and every co-owner
is a trustee for the rest. 7. It is governed first
of all by the contract of the parties; otherwise,
by special legal provisions, and in default of
such provisions, by the provisions of Title III
on Co-Ownership.
2. Sources of co-ownership
4. Termination of co-ownership- a. Total
Destruction of the Thing Owned in Common
b. Merger of All Interests in One Person c.
Acquisitive Prescription d. Partition e. Sale of
Property Co-Owned f. Termination of Period
Agreed upon in Coownership
F.POSSESSION- Possession is the holding of
a thing or the enjoyment of a right.
l . Characteristics
2. Acquisition of possession- a. By material
occupation of a thing or the exercise of a right
b. By the fact that it is subject to the action of
our will c. By the proper acts and legal
formalities for acquiring possession
3. Effects of possession
4. Loss or unlawful deprivation of a movable
- One who has lost any movable or has been
unlawfully deprived thereof, may recover it
from the person in possession of the same.
[Art. 559, CC]
- Relate this to Art. 556 which states that the
possession of movables is not deemed LOST
so long as they remain under the control of the
possessor even though FOR THE TIME
BEING he may not know their whereabouts
(e.g. A ring misplaced or just lost in a
particular place or vicinity). The possessor has
not lost his legal right to the object. He retains
his juridical control of the thing which
remains in his, and not another’s patrimony
5. Possession in concept of owner, holder, in
one's own name, and in name of another
6. Rights of the possessor- Fruits, Refund of
necessary expenses Refund of useful expenses
Right of retention when there are unpaid
necessary or useful expenses Removal of
useful/ornamental improvements without
damage to the principal thing No liability for
deterioration or loss, except in cases of
fraudulent intent or negligence Can exercise
the right of pre-emption and is entitled to
indemnity in case of appropriation Has
presumption of continuity of good faith
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7. Loss or termination of possession- 1. By the
abandonment of the thing; Note: The one who
abandons must have been a possessor in the
concept of an owner]. 2. By an assignment
made to another either by onerous or
gratuitous title; Note: There should be
complete transmission of ownership to another
person. 3. By the destruction or total loss of
the thing, or because it goes out of commerce;
4. By the possession of another for more than
one year, subject to the provisions of Art. 537
(acts merely tolerated, clandestine acts and
violence). But the real right of possession is
not lost till after the lapse of 10 years.
G. USUFRUCT
l. Characteristics
2. Classification
3. Rights and obligations of usufructuary
4. Rights of the owner- 1. The owner retains title
to the thing or property. 2. He may alienate the
property. [Art. 581, CC] He may not alter the
form or substance of the thing, nor do
anything prejudicial to the usufructuary. 3. He
may construct buildings, make improvements
and plantings, provided: ● The value of the
usufruct is not impaired; and ● The rights of
the usufructuary are not prejudiced. 4. He can
constitute a voluntary easement over
land/building held in usufruct without the
usufructuary’s consent. But if it affects the
usufructuary’s right, the latter must give his
consent. If the easement is perpetual, the
consent of both must be obtained
5. Extinction, termination, and extinguishment-
death of usufructuary, termi of period,
fulfillment of reso condition, merger,
renunciation of usufructuary, total loss or
destruction, termination of the right of the
person constituting the usufruct, prescription
H. EASEMENTS
l. Characteristics,
2. Classification
3. Modes of acquiring easements- An easement
is either acquired through a title/juridical act
or by prescription.
4. Rights and obligations of the owners of the
dominant and servient estates
5. Modes of extinguishment- By merger in the
same person of the ownership of the dominant
and servient estates, By non-user for ten years,
Impossibility of use, By the expiration of the
term or the fulfillment of the resolutory
condition, By the renunciation of the owner of
the dominant estate, By the redemption agreed
upon between the owners of the dominant and
servient estates. 1. Annulment and rescission
of the title constituting the voluntary
easement; 2. Termination of the right of
grantor of the voluntary easement; 3.
Abandonment of the servient estate; Eminent
domain;
I. NUISANCE
- A nuisance is any act, omission,
establishment, condition of property, or
anything else which Injures or endangers the
health or safety of others; or others, Annoys or
offends the senses, Shocks, defies, or
disregards decency or morality, Obstructs or
interferes with the free passage of any public
highway or street, or any body of water,
Hinders or impairs the use of property
l. Nuisance per se
- Generally defined as an act, occupation, or
structure, which is a nuisance at all times and
under any circumstances, regardless of
location or surrounding
- Since they affect the immediate safety of
persons and property, they may be summarily
abated under the undefined law of necessity
2. Nuisance per accidens
- Those that are nuisances because of
particular facts and circumstances surrounding
the otherwise harmless cause of the nuisance;
Generally a question of fact, to be determined
in the first instance before the term nuisance
can be applied to it.
- No authority has the right to compel the
abatement of a particular thing or act as a
nuisance without reasonable notice to the
person alleged to be maintaining or doing the
same of the time and place of hearing before a
tribunal authorized to decide whether such a
thing or act does in law constitute a nuisance
3. Liabilities-owners and successive
owners who know of the nuisance and refuse
to abate it;
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-A private person or public official shall be
liable for damages if: a. In an extrajudicial
abatement; b. He causes unnecessary injury;
or c. An alleged nuisance is later declared by
the courts to be not a real nuisance.
4. No prescription-EXC: Art. 698- Lapse
of time cannot legalize any nuisance, whether
public or private.
and 1143(2)- To bring an action to abate a
public or private nuisance.
5. Criminal prosecution- The remedies
against a public nuisance are: 1. A prosecution
under the Penal Code or any local ordinance;
or 2. A Civil Action; or 3. Abatement, without
judicial proceedings
6. Judgment with abatement
7. Extrajudicial abatement
- Abatement, without judicial proceedings.
[Art. 699, CC] ! It must be reasonably and
efficiently exercised. Means employed must
not be unduly oppressive on individuals. ! No
more injury must be done to the property or
rights of individuals than is necessary to
accomplish the abatement. No right to
compensation if property taken or destroyed is
a nuisance.
8. Special injury to individual- A private
person may file an action on account of public
nuisance, if it is specially injurious to himself
- Any private person may abate a public
nuisance which is specially injurious to him
by removing or, if necessary, destroying the
thing which constitutes the same, without
committing a breach of the peace, or doing
necessary injury. But if necessary: 1. That
demand be first made upon the owner or
possessor of the property to abate the
nuisance; 2. That demand has been rejected; 3.
That the abatement be approved by the district
health officer and executed with the assistance
of the local police; and 4. That the value of the
destruction does not exceed Three-Thousand
Pesos
9. Right of individual to abate a public
nuisance
- Process for Extrajudicial Abatement: 1. The
district health officer shall take care that one
or all of the remedies against a public
nuisance are availed of. [Art. 700, CC] 2. The
district health officer shall determine whether
or not abatement, without judicial
proceedings, is the best remedy against a
public nuisance.
- Process for Judicial Abatement (through
Civil Action): 1. General Rule: If a civil action
is brought by reason of the maintenance of a
public nuisance, such action shall be
commenced by the city or municipal mayor.
[Art. 701, CC] 2. Exception: A private person
may file an action on account of a public
nuisance if it is especially injurious to him
10. Right to damages
11. Defenses to action- Remedies of the
property owner A person whose property is
seized or destroyed as a nuisance may resort
to the courts to determine whether or not it
was in fact a nuisance. 1. An action for
replevin; 2. To enjoin the sale or destruction
of the property; 3. An action for the proceeds
of its sale and damages if it has been sold; or
4. To enjoin private parties from proceeding to
abate a supposed nuisance.
12. Who may sue on private nuisance
J. MODES OF ACQUIRNG
OWNERSHIP
l. Occupation
2. Donation
3. Prescription
111. PRESCRIPTION
A. TYPES OF PRESCRIPTION
1. Acquisitive
a. Ordinary
- Ordinary acquisitive prescription: requires
possession of things in good faith and with
just title for the time fixed by law. Note:
Ownership and other real rights over
immovable property are acquired by ordinary
prescription through possession of ten years
b. Extraordinary
- Extraordinary acquisitive prescription:
acquisition of ownership and other real rights
without need of title or of good faith or any
other condition
- Ordinary i. Movable properties - 4 years ii.
Immovable properties - 10 years b.
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 Extraordinary: i. Movable properties - 8 years summons are received. b. For extinctive
ii. Immovable properties - 30 prescription – starts from the time action is
2. Extinctive filed in court, written extrajudicial demand by
- The loss or extinguishment of property rights the creditors is received, or when there is
or actions through the possession by another written acknowledgment of the debt by the
of a thing for the period provided by law or debtor
through failure to bring the necessary action to
enforce one’s right within the period fixed by IV.
law SUCCESSION
- Requires inaction of the owner out of
possession or neglect of one with a right to A. GENERAL PROVISIONS
bring his action l. Definition
- Applicable to all kinds of rights, whether real 2. Succession occurs at the moment of death
or personal.; Merely results in the loss of a 3. Kinds of Successors
real or personal right, or bars the cause of B. TESTAMENTARY SUCCESSION
action to enforce said right 1. Wills
a. Characteristics 2. Institution of heirs
b. Requisites 3. Substitution of heirs
c. Periods 4. Conditional testamentary dispositions and
testamentary dispositions with a term
B. WHEN PRESCRIPTION IS 5. Legitime
INAPPLICABLE
l. By offender C. LEGAL OR INTESTATE
2. Registered lands SUCCESSION
3. Actions to demand right of way; to abate a l. General provisions
nuisance a. Relationship
4. Action to quiet title if plaintiff is in possession b. Right of representation
5. Void contracts 2. Order of intestate succession
6. Action to demand partition; distinguished
from laches D. PROVISIONS COMMON TO T
7. Property of public dominion AND INTESTATE SUCCESSION
1. Right of accretion
C. PRESCRIPTION OR LIMITATION 2. Capacity to succeed by will or intestacy
OF ACTIONS 3. Acceptance and repudiation of the inheritance
l . To recover movables 4. Collation
2. To recover immovables 5. Partition and distribution of estate
3. Other actions
V. OBLIGATIONS
E. INTERRUPTION- When
prescription of actions is interrupted a. A. GENERAL PRous10Ns
They are filed before the court; b. When l. Definition
there is a written extrajudicial demand 2. Elements of an obligation
by the creditors; and c. When there is 3. Sources of obligations
any written acknowledgment of the
debt by the debtor B. NATURE AND EFFECT OF
- Types of interruption 1. Natural - Any OBLIGATIONS
natural cause that interrupts the possession for l. Obligation to give
more than one year. 2. Civil a. For acquisitive 2. Obligation to do or not to do
prescription – starts from the time judicial 3. Transmissibility of obligations

Page 7 of 13
 4. Performance of obligations
5. Breaches of obligations
6. Remedies available to creditor in cases of
breach
-Rescisssion under 1380- Based on lesion or
fraud upon creditors, Action is instituted by
either party or by a third person, Subsidiary
action, in the absence of any other legal means
to obtain reparation, Applies to either
unilateral or reciprocal obligations even when
the contract has been fully fulfilled, Non-
performance by the other party is immaterial.
C. KINDS OF OBLIGATIONS
l. Pure
2. Conditional
3. Obligation with a period or a term
4. Alternative or facultative
5. Joint and solidary obligations
6. Obligations with a penal clause
D. EXTINGUISHMENT OF
OBLIGATIONS
l. Payment or performance
2. Loss of determinate thing due or impossibility
or difficulty of performance
3. Condonation or remission of debt
4. Confusion
5. Compensation
6. Novation
VI. CONTRACTS
A. GENERAL PRous10Ns
1. Stages of contracts
2. Classification
3. Essential requisites
B. FORMALITY
C. REFORMATION OF INSTRUMENTS- In
granting reformation, the remedy in equity is
not making a new contract for the parties, but
establishing and perpetuating the real contract
between the parties which, under the technical
rules of law, could not be enforced but for
such reformation.
D. INTERPRETATION OF
CONTRACTS
E. DEFECTIVE CONTRACTS
1. Rescissible contracts
2. Voidable contracts
3. Unenforceable contracts
4. Void or inexistent contracts
5. Distinguish: resolution and rescission of
contracts
Vil. NATURAL OBLIGATIONS
Vlll. ESTOPPEL
-Kinds:
- a. Equitable Estoppel or Estoppel in
pais or by conduct 1. Estoppel by silence 2.
Estoppel by acceptance of benefits
- b. Technical Estoppels 1. Estoppel by
Deed – a party to a deed is precluded from
asserting as against the other party, a material
fact asserted therein; and 2. Estoppel by
Record – a party is precluded from denying
the truth of the matters set forth in a record
whether judicial or legislative and also to deny
the facts adjudicated by a court of competent
jurisdiction.
- c. Estoppel by Judgment – a party to
a case is precluded from denying the facts
adjudicated by a court of competent
jurisdiction
- d. Estoppel by laches
IX. SPECIAL CONTRACTS
A.SALES- y the contract of sale one of
the contracting parties obligates himself
to transfer the ownership and to deliver
a determinate thing, and the other to
pay therefor a price certain in money or
its equivalent.
1. General provisions
-Conditional contract of sale: Sale is already
perfected and buyer is presumed a buyer in
bad faith; upon fulfillment of suspensive
condition, sale becomes absolute;
Page 8 of 13
-contract to sell: no perfected sale yet,
subsequent buyer in good faith; no double sale
because previous sale was not perfected
despite fulfillment of suspensive condition
2. Parties
3. Obligations of the vendor
- 1. To transfer ownership of the thing 2. To
deliver the thing, with its accessions and
accessories, if any 3. To warrant against
eviction and against hidden defects 4. To take
care of the thing, pending delivery, with
proper diligence 5. To pay for the expenses of
the deed of sale
- The three instances when the vendee shall
pay interest for the period between delivery
and payment of the price: 1. If there was a
stipulation; 2. If the thing sold and delivered
produces fruits or income; 3. If the vendee is
in default, from the time of judicial or
extrajudicial demand for payment
4. Obligations of the vendee-inspection
and examine, deliver, pay price and interest,
Obligation to Bear the Expenses for the
Execution and Registration of the Sale and
Putting the Goods in a Deliverable State, if so
Stipulated
5. Transfer of ownership
6. Risk of loss
- General Rule: Risk of loss shall be borne by
the owner (Note: owner is not always the
seller)
- Exceptions 1. When ownership of the goods
has been transferred to him, the buyer bears
the risk of loss. 2. When there is a stipulation
to the contrary. 3. When the seller retains the
title for security, the buyer bears the risk of
loss. 4. When there is delay in the delivery,
the party in fault bears the risk of loss. 5.
When sale is for “approval or trial”, the seller
bears the risk of loss until the buyer approves
or the trial period lapses. 6. When sale is on
“return”, the buyer bears the risk of loss until
he returns it
- Prior to Perfection of Contract Seller bears
risk of loss and deterioration. Basis: Res perit
domino When there is no proof that the parties
have agreed as to the thing which should be
the subject of the contract and that one has
accepted the terms proposed by the other, it
cannot be said that the contracting parties have
given their mutual consent as to the subject
and consideration of the contract. The
disappearance or loss of property which the
owner intended or attempted to sell can only
interest the owner, who should suffer the loss,
and not a third party who has acquired no
rights nor incurred any liability with respect
thereto.
-at the time of perfection Seller bears risk of
loss and deterioration because of res perit
domino
-after perfection: General Rule: Buyer bears
risk of loss and deterioration Exceptions: a.
Where delivery has been made either to the
buyer or to the bailee for the buyer, but
ownership in the goods has been retained by
the seller merely to secure performance by the
buyer of his obligations under the contract;
and b. Where actual delivery has been delayed
through the fault of either the buyer or seller,
the goods are at the risk of the party in fault.
- Before Perfection Seller bears risk of loss or
deterioration Seller also benefits from the
fruits and improvements therein
-At Perfection Entire Loss will be ineffective
Substantial Loss or Deterioration shall allow
buyer to withdraw or buy the remainder at a
proportionate price.
-After Perfection Seller bears risk of loss
Buyer bears risk of deterioration Buyer also
benefits from the fruits and improvements
therein
-Before Delivery Buyer bears risk of loss or
deterioration Buyer also benefits from the
fruits and improvements therein
7. Documents of title
- Rights Acquired by Negotiation A document
of title represents the right of the consignee in
the goods so that: • A person to whom a
negotiable document of title had been duly
negotiated acquires not merely the rights of
his vendor but also whatever rights the
original consignee had over the goods. • The
buyer of the document of title may acquire a
better title than his vendor, constituting an
exception to Art 1505
- Implied Warranties A person who transfers
or negotiates a document of title for value: •
Warrants not only the genuineness and
validity of the document and his right to
Page 9 of 13
transfer it • BUT ALSO assumed all the
warranties of a vendor of goods
- However, he does NOT warrant that the
common carrier will fulfill its obligations to
deliver the goods or that the previous
indorsers will fulfill their obligation
- A document of title refers to specific goods
in the possession of the carrier ○ This cannot
be substituted by similar goods of the same
kind and quantity should the carrier fail to
deliver the goods described in the document
8. Warranties- A statement or
representation made by the seller
contemporaneously and as part of the contract
of sale, having reference to the character,
quality, or title of the goods, and by which he
promises or undertakes to ensure that certain
facts are or shall be as he then represents
- For there to be express warranty, the
following requisites must concur: a. An
affirmation of fact or any promise relating to
the thing sold; b. The natural tendency of such
affirmation or promise is to induce the buyer
to buy; c. The buyer buys the thing relying
thereon. d. Made before the sale, not upon
delivery or any other point
- An implied warranty is derived by law, by
implication, or inference from the nature of
the transaction or relativation, or
circumstances of the parties, irrespective of
any intention of the seller to create it
- IMPLIED WARRANTY OF TITLE Implied
warranty arises by operation of law and need
not be stipulated in the contract of sale.
Warranty of Seller’s Right to Sell: Seller
warrants his right to sell at the time the
ownership is to pass. Inapplicable to a sheriff,
auctioneer, mortgagee, pledgee, or other
person professing to sell by virtue of authority
in fact or law
- Warranty against Eviction: Seller warrants
that buyer, from the time ownership passes,
shall have and enjoy legal and peaceful
possession of the thing. Its requisites are: a.
Buyer is deprived of the whole or a part of the
thing sold; b. Eviction is by final judgment; c.
Final judgment based on a right prior to the
sale or an act imputable to the vendor; d.
Seller is summoned and made codefendant in
the suit for eviction at the instance of the
buyer
- IMPLIED WARRANTY AGAINST
ENCUMBRANCE/NON-APPARENT
SERVITUDES Requisites for breach: a. Thing
sold is an immovable b. Burden or servitude
encumbering the thing sold is: 1. Non-
apparent to the naked eye 2. Not mentioned in
the agreement 3. Of such nature that it must be
presumed that the buyer would not have
bought it had he been aware of it 4. Not
recorded in the Registry of Property unless
there is an express warranty that the thing is
free from all burdens and encumbrances
- IMPLIED WARRANTY AGAINST
HIDDEN DEFECTS Requisites for breach: a.
The defect renders the thing sold unfit for the
use for which it was intended OR diminishes
its fitness for such use to such an extent that
had the buyer been aware thereof, he would
not have bought it or would have paid a lower
price; b. The defect is not patent or visible; c.
The buyer is not an expert who, by reason of
his trade or profession, should have known the
defect d. The seller is aware of the hidden
fault or defect, OR even if he is not aware
thereof, if there is no stipulation to the
contrary
- The buyer must also give notice of such
redhibitory defect within a reasonable time.
The use contemplated must be that which is
stipulated, and in the absence of stipulation,
that which is adopted to the nature of the
thing, and to the business of the buyer
- IMPLIED WARRANTY AS TO
MERCHANTABLE QUALITY AND
FITNESS OF GOODS Merchantable Quality
a. Where the goods are brought by description
from a seller who deals in goods of that
description [Art. 1562, CC] b. In a sale by
sample, if the seller is a dealer in goods of that
kind and the defect is not apparent on
reasonable examination of the sample
- Warranty of merchantability is warranty that
goods are reasonably fit for the general
purpose for which the same are sold. While
Warranty of fitness is warranty that goods are
suitable for the special purpose of the buyer
which will not be satisfied by mere fitness for
general purposes.
Page 10 of 13
- IMPLIED WARRANTY AGAINST
REDHIBITORY DEFECT IN THE SALE OF
ANIMALS Redhibitory defect – a hidden
defect of animals of such nature that expert
knowledge is not sufficient to discover it, even
in a case where a professional inspection has
been made No warranty in case of a. Animals
sold at fairs or public auctions b. Livestock
sold as condemned
- Remedies of buyer for breach of warranty,
both implied and express: • Accept goods +
demand diminution/extinction of price •
Accept goods + damages • Refuse to accept
goods + damages Rescind (Refuse to accept or
return or offer to return) + recover price paid
- Period specified in express warranty OR 4
years, if no period is specified; Measure of
damages: Difference between value of goods
at the time of delivery and the value they
would have had if they had answered to the
warranty
- IMPLIED WARRANTY AGAINST
REDHIBITORY DEFECTS OF ANIMALS
Remedies • Withdraw from contract +
damages • Demand a proportionate reduction
of the price + damages
9. Breach of contract
- Prescriptive periods • 10 years if based on
written contract • 6 years if based on oral
contract
-Sale of Price
- ACTION FOR PRICE a. When the
ownership of the goods has passed to the
buyer and he wrongfully neglects or refuses to
pay for the price b. When the price is payable
on a certain day and the buyer wrongfully
neglects to pay such price, whether or not
ownership has passed c. When the goods
cannot readily be resold for a reasonable price,
and the buyer wrongfully refuses to accept the
goods, whether or not ownership has passed
= In an action by the seller under (b), buyer
can set up the defense that the seller, at any
time before judgment in such action, could not
or did not intend to deliver the goods. Unless
the contrary appears, payment and delivery are
presumed to be concurrent acts, and the
obligation of each party to perform the
contract is dependent upon the simultaneous
performance by the other party
- If ownership has not yet passed to the buyer,
the seller cannot maintain an action for the
price, unless it involves (1) or (3). Title to
goods passes from the moment the goods are
placed at the buyer’s disposal when refusal to
accept is without just cause.
- ACTION FOR DAMAGES When
ownership has not yet passed and the buyer,
without lawful cause, neglects or refuses to
ACCEPT and PAY for the goods
- General rule: Measure of damages is
the ESTIMATED LOSS directly and naturally
resulting in the ordinary course of events from
the buyer’s breach. Exceptions: a. Where there
is available market for goods: Difference
between the contract price and the market
price. The market price is fixed at the time the
goods ought to have been accepted, or if no
time was fixed, at the time of refusal to accept.
Note: When there are special circumstances
showing proximate damages of a greater
amount than the difference between the
contract price and market price, seller is
entitled to such higher amount of damages
when such damages may be reasonably
attributed to the non-performance of the
obligation b. Where labor or expense of
material amount is necessary on the part of the
seller to perform the contract: Cost of labor
performed or expenses made before receiving
notice of buyer’s repudiation, and unrealized
profit.
- RESCISSION BY GIVING THE BUYER
NOTICE OF THE ELECTION TO RESCIND
When the goods have not yet been delivered
to the buyer, and the buyer repudiated the
contract of sale, or manifested his inability to
perform his obligations, or has committed a
breach of the contract of sale. Under this rule,
rescission would bar an action on the contract
because it means cancellation of the
contractual obligations between the parties.
The unpaid seller’s right to rescind for non-
performance is not absolute. Not allowed to
rescind when: a. There are 3rd persons
possessing the objects of the contract to whom
no bad faith is imputable [b. Breach is on
slight or casual The seller cannot unilaterally
and extrajudicially rescind a contract absent
Page 11 of 13
express stipulation to do so, except as
provided in Art. 1597
-Remedies of an unpaid seller- Seller is
deemed to be unpaid seller: 1. When the
whole of the price has not been paid or
tendered; 2. When a bill of exchange or other
negotiable instrument has been received as
conditional payment, and the condition on
which it was received has been broken by
reason of the dishonor of the instrument, the
insolvency of the buyer, or otherwise
- a. Possessory lien; b. Stoppage in
transitu; c. Special right of resale; and d.
Special right to rescind Note: These special
remedies have a hierarchical application. The
special rights to resell and to rescind can be
availed of by the unpaid seller only when
either of the two prior rights of possessory lien
or stoppage in transitu have been exercised by
the unpaid seller.
-Recto Law
-Sale of movables in installment The
rule is intended to apply to sales of movables,
the price of which is payable in 2 or more
installments, but not to straight-term sales
where the price is payable in full, after making
a down payment because the law aims to
protect improvident buyers who may be
tempted to buy beyond their means.; remedies
are alternative and exclusive
-specific performance: If specific
performance has become impossible, the seller
may still choose rescission
-Cancellation of sale if vendee fails to
pay 2 or more installments When the seller
cancels the sale by repossessing the property
sold, he is barred from exacting payment for
its price. It can only be carried out when he
who demands rescission can return whatever
he may be obliged to restore.
-Foreclosure of Chattel Mortgage if
vendee fails to pay 2 or more installments If
seller chooses this remedy, he shall have no
further action to recover any unpaid balance,
and any stipulation to the contrary shall be
void. The purpose of the law is to remedy the
abuses committed in foreclosure of chattel
mortgages. It prevents mortgagees from
seizing the mortgaged property, buying it at
foreclosure sale for a low price and then
bringing the suit against the mortgagor for a
deficiency judgment. The almost invariable
result of this procedure was that the mortgagor
found himself minus the property and still
owing practically the full amount of his
original indebtedness
- Sale of Immovables RESCISSION
FOR ANTICIPATORY BREACH Note: This
is applicable to both cash sales and sales in
installments. Requisites a. There is delivery of
immovable property b. Vendee has not yet
paid the price; and c. Vendor has reasonable
grounds to fear the loss of property and the
loss of price If there is no such reasonable
ground, Art. 1191 applies (specific
performance or rescission with damages
-MACEDA LAW-SECS. 23 AND 24, PD
957 Non-forfeiture of payments No
installment payment made by the buyer shall
be forfeited in favor of the owner or
developer of the condominium or subdivision
project, after due notice, when the buyer
desists from paying due to the failure of the
developer or owner to develop the project
according to the approved plans or within the
time limit stated. Buyer’s Remedy: At his
option, he may reimburse the total amount
paid including amortization interest with
interest thereon at the legal rate. If the buyer
fails to pay the installments for reasons other
than the failure of the owner or developer to
develop the project, his rights shall be
governed by RA 6552.
-RA 6552 does NOT apply to: a.
Industrial lots b. Commercial buildings c.
Sale to tenants under Agricultural Reform
Code [RA 3844] d. Sale of lands payable in
straight term
-Rights of the Buyer: The law imposes
additional requirements on the part of the
seller for a valid rescission. a. If buyer has
paid at least 2 years of installments then
defaults: • Buyer has right to a grace period
of 1 month per year of installment payment
made BUT the buyer may only avail of the
grace period once every 5 years • Buyer has
right to the refund of Cash Surrender Value
(CSV): 50% of total amount paid + 5% for
every year after the first 5 years of
installments BUT total CSV should not be
Page 12 of 13
 greater than 90% of total amount paid • After
the lapse of the grace period, buyer is given a
notice of cancellation or demand for
rescission by notarial act, effective 30 days
from the buyer’s receipt thereof AND only
upon full payment of CSV
-b. If buyer has paid less than 2 years
of installments: • Grace period of at least 60
days • After the lapse of the grace period,
buyer is given a notice of cancellation or
demand for rescission by notarial act,
effective 30 days upon receipt thereof
-c. During the grace period, the buyer
shall also have the right: • To sell or assign
his rights, evidenced in a notarial instrument
• To update his account • To pay in advance
any installment, or the full unpaid balance of
the price, without any interest, and to have
such full payment of the purchase price
annotated in the certificate of title covering
the property.
10. Performance of contract
-LIABILITY FOR INTEREST The vendee is
bound to accept delivery and to pay the price
of the thing sold at the time and place
stipulated in the contract (Art. 1582, CC: If
the time and place should not have been
stipulated, payment must be made at the time
and place of delivery of the thing sold).
General Rule: The vendee shall owe interest
on the price from the time the thing is
delivered up to the time of payment if there is
a stipulation requiring interests • If there is no
stipulation: from the time of judicial or
extrajudicial demand for payment. • This
applies if the thing delivered produces fruits or
income, or if the buyer incurs in default
11. Extinguishment
-Conventional Redemption exists when the
vendor reserves the right to repurchase the
thing sold, with the obligation to: 1. Return
price of the sale 2. Expenses of the contract 3.
Any other legitimate payments by reason of
the sale 4. Necessary and useful expenses
-General Rule: Follow period
stipulated in contract, but should not exceed
10 years. Exceptions: 1. If no period stipulated
but the parties intended a period, then it shall
be 10 years from the date of the contract. 2. If
no period stipulated, then it shall be four years
from the execution of the contract 3. But
vendor may still exercise the right to
repurchase within thirty days from the time
final judgment was rendered in a civil action
on the basis that the contract was a true sale
with right to repurchase
-By itself, no equitable mortgage under the ff.
instances: 1. Mere tolerated possession 2.
Mere delay in transferring title to the buyer
-in equitable mortgages, Remedies of
apparent vendor a. If the instrument does
not reflect the true agreement: remedy is
reformation b. If decreed to be an
equitable mortgage: any money, fruits or
other benefit to be received by the buyer
as rent or otherwise considered as
interest. c. If decreed as a true sale with
right to purchase: seller may redeem
within 30 days from finality of judgment,
even if the period for redemption has
expired.
-Legal redemption: redemption by co-
owners, adjoining land-owners(rural and
urban land), public land act(non-dispo of
patented lands within 5 yrs from
conveyance), under agrarian land reform
code in favor of agricultural lessee(180d
from notice in writing)
B.TRUSTS-A trust is the legal relationship
between one person having an equitable
ownership of property and another person
owning the legal title to such property, the
equitable ownership of the former entitling
him to the performance of certain duties
and the exercise of certain powers by the
latter
-implied trusts must be proved by clear
and convincing evidence
-Resulting Trusts - a trust
raised by implication of law and presumed
to have been contemplated by the parties
-Constructive Trusts - a trust not created
by any words, either expressly or
impliedly evincing a direct intension to
create a trust, but by the construction of
equity in order to satisfy the demands of
justice
Page 13 of 13
C.AGENCY-By the contract of
agency, a person binds himself to
render some service or to do
something in representation or on
behalf of another, with the consent
or authority of the latter
-Agency by estoppel-No actual
agency, only the presence of an
apparent authority; Liability depends
whether estoppel is caused by the
principal or the agent; A third
party’s reliance in the representation
is necessary to invoke agency by
estoppel.
-Obligations of the agent: to act
within scope of authority, to carry
out terms of agency, to prefer
interest of principal over his own, to
render and deliver an account, to pay
interest 1. The sums he has applied
to his own use from the day on
which he did so; and 2. Those which
he still owes after the
extinguishment of the agency; To be
liable for fraud and negligence The
agent is also liable for fraud and
negligence. In this case, negligence
shall be judged with more or less
rigor by the courts, according to
whether the agency was or was not
for compensation
D. COMPROMISE
-a. Judicial – puts an end to a pending
litigation b. Extrajudicial – to avoid
litigation
-Void Compromise No compromise upon
the following questions shall be valid: (1)
The civil status of persons; (2) The validity
of a marriage or a legal separation; (3)
Any ground for legal separation; (4)
Future support; (5) The jurisdiction of
courts; (6) Future legitime.
-If one of the parties fails or refuses to
abide by the compromise, the other party
may either enforce the compromise or
regard it as rescinded and insist upon his
original demand
E.LOAN-By the contract of loan, one
of the parties delivers to another,
either something not consumable so
the latter may use the same for a
certain time and return it, in which
case the contract is called a
commodatum, or money or other
consumable thing, upon the
condition that the same amount of
the same kind and quality shall be
paid, in which case the contract is
simply called a loan or mutuum
1. Loan
2. Commodatum
-Obligations of the Bailee: Take care of the
thing loaned with the proper diligence of a
good father of a family, Use the thing
loaned only for the purpose for which it
was loaned and not for any other purpose,
Not to lend the thing to a third person who
is not a member of his household., Return
the thing upon the expiration of the period
stipulated or after the accomplishment of
the use for which it has been constitute,
Pay for the ordinary expenses for the use
and preservation of the thing loaned, Bear
equally (with the bailor) the extraordinary
expenses arising on the, occasion of actual
use of the thing by the bailee even though
bailee acted without fault., Solidarily liable
when there are two or more bailees to
whom a thing is loaned in the same
contrac
-Bailee has right of retention for
damages when the bailor who, knowing
the flaws of the thing loaned, does not
advise the bailee of the same
-Obligations of Bailor:
-Demand the return of the thing
only upon the expiration of the term or
after the accomplishment of the use, When
bailor has urgent need of the thing, he may
demand its return (extinguish
commodatum) or its temporary use
(suspend commodatum), Precarium or a
contractual relation where the bailor may
Page 14 of 13
 demand the property loaned at will, If
bailee commits any acts of ingratitude in
Art. 765
-Refund the extraordinary expenses
during the contract for the preservation of
the thing loaned Provided that: Bailee
brings the same to the knowledge of the
bailor before incurring them, except when
they are so urgent that the reply cannot be
awaited without danger.
-Bear equally (with the bailee) the
extraordinary expenses arising on the
occasion of actual use of the thing by the
bailee Exception: Contrary stipulation
-Pay damages to the bailee for
hidden flaws known to the bailor; Note:
Bailor has no right of abandonment; he
cannot exempt himself from payment of
expenses or damages to the bailee by
abandoning the thing to the latter
3. Simple loan
-Interest
-Simple interest – Paid for the
principal at a certain rate fixed or
stipulated by the parties.
-Compound Interest – Interest
which is imposed when interest due and
unpaid is capitalized or added to the
principal
-Compound interest is
allowed: a. When there is an express
written stipulation to that effect [Art.1956,
CC] OR b. Upon judicial demand.
However, debtor is not liable to pay
compound interest even after judicial
demand when there is no stipulation for
payment of interest
-Also known as Legal Interest –
That which the law directs to be charged in
the absence of any agreement as to the rate
between the parties, or when there are
actual and compensatory damages
imposed by the Court
-Rules for the Award of Interest in the
Concept of Actual and Compensatory
Damages Note: Jurisprudential basis is
Nacar v. Gallery Frames, G.R. No. 189871
(2013) modifying Eastern Shipping Lines
vs. CA, G.R. No. 97412 (1994)] in light of
BSP-MB Circular No. 799]
-1. When the obligation is breached,
and it consists in the payment of a sum of
money, i.e., a loan or forbearance of
money, a. The interest due should be that
which may have been stipulated in writing.
b. The interest due shall itself earn legal
interest from the time it is judicially
demanded.; . In the absence of stipulation,
the rate of interest shall be 6% per annum
to be computed from default, i.e., from
judicial or extrajudicial demand under and
subject to the provisions of Article 1169 of
the CC.
-2. When an obligation, not
constituting a loan or forbearance of
money, is breached a. An interest on the
amount of damages awarded may be
imposed at the discretion of the court at
the rate of 6% per annum. b. No interest,
however, shall be adjudged on
unliquidated claims or damages, except
when or until the demand can be
established with reasonable certainty. c.
Where the demand is established with
reasonable certainty, the interest shall
begin to run from the time the claim is
made judicially or extrajudicially d. When
such certainty cannot be so reasonably
established at the time the demand is
made, the interest shall begin to run only
from the date the judgment of the court is
made [at which time the quantification of
damages may be deemed to have been
reasonably ascertained]. e. The actual base
for the computation of legal interest shall,
in any case, be on the amount finally
adjudged.
-3. When the judgment of the court
awarding a sum of money becomes final
and executory, the rate of legal interest,
whether the case falls under paragraph 1 or
paragraph 2, above, shall be 6% per annum
Page 15 of 13
 from such finality until its satisfaction, this
interim period being deemed to be by then
an equivalent to a forbearance of credit.
4. Interests on loan
a. Conventional interest
b. Interest on interest
c. Compensatory, penalty or indemnity interest
d. Finance charges-"Finance charge" includes
interest, fees, service charges, discounts,
and such other charges incident to the
extension of credit as the Board may be
regulation prescribe; This law applies to
all persons who extend credit, who require
as an incident to extending credit, the
payment of a finance charge
-"finance charge" represents the amount to
be paid by the debtor incident to the
extension of credit such as interest or
discounts, collection fees, credit
investigation fees, attorney’s fees, and
other service charges. The total finance
charge represents the difference between
(1) the aggregate consideration (down
payment plus installments) on the part of
the debtor, and (2) the sum of the cash
price and non-finance charges
e. Usury
F. DEPOSIT-A deposit is constituted from the
moment a person receives a thing
belonging to another, with the obligation
of safely keeping it and of returning the
same
-A deposit is generally gratuitous, except:
1. If there is an agreement to the contrary
2. When the depositary is engaged in the
business of storing goods
-Depositary NOT LIABLE FOR LOSS
General rule: The depositary is not liable
in the event of loss. The required degree of
care however, is greater if the deposit is
for compensation.
-Exceptions: 1. Loss is through his fault or
Negligence or the negligence of his
employee, even if the thing was insured; 2.
Loss while in his Possession, ordinarily
raises presumption of fault on his part. 3.
Loss arose from the Character of the thing
deposited, and the depositary was notified
of, or was aware of such character at the
time of the constitution of the deposit.
Loss is through a Fortuitous event, and if
a. It is stipulated that depositary will be
liable; b. Depositary uses the thing without
Depositor’s permission; c. Depositary
delays its return; or d. Depositary allows
others to use it. 5. Loss when depositary
Uses the thing Exception: Use with
permission or for preservation 6. Loss
when depositary deposits the thing with a
Third person Exception: if deposit with a
third person is allowed Exception to the
exception: if such third person is
manifestly careless or unfit 7. Loss occurs
and the depositary Receives
money/replacement, he must deliver such
to the depositor
-Authority of Depositary: 1. Depositary
may Change way of deposit if he may
reasonably presume that the depositor
would consent if he knew the situation. He
is to notify the depositor thereof and wait
for the latter’s decision, unless delay
would cause danger. 2. Depositary is
required to Collect on interest earned by
certificates, bonds, securities and
instruments when it becomes due3.
Depositary cannot make Use of the thing
deposited unless with depositor’s consent
or its preservation requires its use. 4.
Depositary may Return the thing to the
depositor even before the time designated,
if there is justifiable reason not to keep it.
Exception: when the deposit is for
valuable consideration
G. LEASE-In the lease of things, one of the
parties binds himself to give to another the
enjoyment or use of a thing for a price
certain, and for a period, which may be
definite or indefinite. However, no lease
for more than ninety-nine years shall be
valid
Page 16 of 13
H. -Obligations of a Lessor (1) To deliver the
thing which is the object of the contract in
such a condition as to render it fit for the
use intended; (2) To make on the same
during the lease all the necessary repairs,
unless there is a stipulation to the contrary;
(3) To maintain the lessee in the peaceful
and adequate enjoyment of the lease (4) If
lessee makes improvements in good faith,
without altering form or substance, lessor,
upon the termination of the lease, shall pay
the lessee one-half of the value of the
improvements at that time. If payment is
refused, lessee may remove the
improvements, even though the principal
thing may suffer damage thereby
-Note: If the thing leased is totally
destroyed by a fortuitous event, the
lease is extinguished. If the
destruction is partial, the lessee may
choose between 1. Proportional
reduction of the rent and, 2. A
rescission of the lease
-Obligations of a Lessee (1) To pay the
price of the lease according to the terms
stipulated; (2) To use the thing leased as a
diligent father of a family, devoting it to
the use stipulated; Note: In the absence of
stipulation, the diligence required is to that
which may be inferred from the nature of
the thing leased, according to the custom
of the place; (3) To pay expenses for the
deed of lease (4) To notify the lessor of
usurpation or untoward act which any third
person may or will commit (5) To advise
the lessor of need for repairs, to return the
property leased upon.
-General Rule: In a contract of sale, there
is an implied warranty on the part of the
seller that: 1. He has a right to sell the
thing at the time when the ownership is to
pass, and that the buyer shall from that
time have and enjoy the legal and peaceful
possession of the thing; and 2. The thing
shall be free from any hidden faults or
defects, or any charge or encumbrance not
declared or known to the buyer. Exception:
Unless a contrary intention appears
-warrants against eviction and defects are
still present
X. QUASI-CONTRACTS
A. NEGOTIORUMGESTIO
B. SOLUTIO INDEBITI
Xl. LAND TITLES AND DEEDS
-Land Registration is A judicial or
administrative proceeding whereby a
person’s claim of ownership over a
particular land is determined and
confirmed or recognized so that such land
and the ownership thereof may be
recorded in a public registry
-Registrable lands are a. Alienable public
agricultural lands If the land is in the
public domain, the land must be classified
as alienable and disposable. It must be
classified as such at the time of filing the
application for registration. b. Private
lands
-Patents – Whenever public land is by the
Government alienated, granted or
conveyed to any person, the same shall be
brought forthwith under the operation of
this Decree [PD 1529
A.TORRENS SYSTEM-Claims and
liens of whatever character existing
against the land prior to the issuance
of the certificate of title are cut off
by such certificate and the certificate
so issued binds the whole world,
including the government;
-Exceptions: • Those claims noted
on the certificate • Liens, claims, or
rights arising or existing under the
laws and the Constitution, which
are not by law required to appear on
record in the Register in order to be
valid • Unpaid real estate taxes
levied and assessed within 2 years
immediately preceding the
acquisition of any right over the
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 land by an innocent purchaser for areas, and natural resources therein, held
valu under a claim of ownership, occupied or
1. Concept and background possessed by ICCs/IPs, by themselves or
2. Certificate of title through their ancestors, communally or
individually since time immemorial,
B. AGRARIAN TITLES AND ANCESTRAL
continuously to the present except when
LANDS AND DOMAINS
interrupted by war, force majeure or
l. Concept and registration of agrarian titles
displacement by force, deceit, stealth or as
-Agrarian reform is defined as the
a consequence of government projects or
redistribution of lands, regardless of crops
any other voluntary dealings entered into
or fruits produced, to farmers and regular
by government and private
farmworkers who are landless, irrespective
individuals/corporations, and which are
of tenurial arrangement, to include the
necessary to ensure their economic, social
totality of factors and support services
and cultural welfare.
designed to lift the economic status of the
C. CITIZENSHIP REQUIREMENT
beneficiaries and all other arrangements
1. Individuals
alternative to the physical redistribution of
2. Corporations-General Rule: Private
lands, such as production or profit-sharing,
corporations may not hold alienable lands
labor administration, and the distribution
of the public domain. Exceptions a. By
of shares of stocks, which will allow
lease for a period not exceeding twentyfive
beneficiaries to receive a just share of the
years, renewable for not more than twenty-
fruits of the lands they work
five years and not to exceed one thousand
-P.D. 27, or The Tenant Emancipation hectares in area. b. If the predecessors-in-
Doctrine Provides for the emancipation of interest of the corporation have been in
farmers of private agricultural lands possession of the land in question since
primarily devoted to rice and corn under a June12,1945 or earlier, then it may
system of sharecrop or lease-tenancy, rightfully apply confirmation of title to the
whether classified as landed estate or not. land. The vested right has to be respected.
2. Concept and registration of ancestral lands
and domains
D. ORIGINAL REGISTRATION-
-Lands under native title are not part of
When right of ownership or title to
public domain, “lands possessed by an
land is for the first time made of
occupant and his predecessors since time
public record
immemorial, such possession would justify
l. Who may apply
the presumption that the land had never
Under Sec. 14, PD 1529: 1. Those who by
been part of the public domain or that it
themselves or through their predecessors-
had been private property even before the
in-interest, have been in open, continuous,
Spanish conquest
exclusive and notorious possession and
-Ancestral lands Refers to land occupied,
occupation of alienable and disposable
possessed and utilized by individuals,
lands of the public domain under a bona
families and clans who are members of the
fide claim of ownership since June 12,
ICCs/IPs since time immemorial, by
1945, or earlier. 2. Those who have
themselves or through their predecessors-
acquired ownership of private lands by
in-interest.
prescription 3. Those who have acquired
-Ancestral domains Refer to all areas
ownership of private lands or abandoned
generally belonging to ICCs/IPs
river beds by right or accession or
comprising lands, inland waters, coastal
accretion 4. Those who have acquired

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ownership of land in any other manner
provided for by law: ● Land owned in
common: ALL co-owners shall file the
application jointly. ● Land has been sold
under pacto de retro: the vendor a retro
may file an application for the original
registration of the land, provided,
however, that should the period for
redemption expire during the pendency of
the registration proceedings and ownership
to the property consolidated in the vendee
a retro, the latter shall be substituted for
the applicant and may continue the
proceedings. ● Land subject of a trust
agreement: A trustee on behalf of his
principal may apply for original
registration of any land held in trust by
him, unless prohibited by the instrument
creating the trust.
-Under Sec. 12, CA 141; Any person who:
1. Is a citizen of the Philippines over the
age of 18, or the head of a family; 2. Does
not own more than 24 hectares of land in
the Philippines, or has not had the benefit
of any gratuitous allotment of more than
24 hectares of land since the occupation of
the Philippines by the United States Note:
they may enter a homestead of not
exceeding 24 hectares of agricultural land
of the public domain
-Under RA 8371: 1. Sec. 11 – Formal
recognition of ancestral domains by virtue
of Native Title may be solicited by
ICCs/IPs concerned 2. Sec. 12 – Option to
secure certificate of title under CA 141 or
Land Registration Act 496 ● Individual
members of cultural communities with
respect to individually-owned ancestral
lands who, by themselves or through their
predecessors-in -interest, have been in
continuous possession and occupation of
the same in the concept of owner since
time immemorial or for a period of not less
than thirty (30) years immediately
preceding the approval of this Act and
uncontested by the members of the same
ICCs/IPs shall have the option to secure
title to their ancestral lands ● Option
granted shall be exercised within 20 years
from the approval of RA 8371
2. Registration process and requirements
3. Remedies-An aggrieved party in a
registration proceeding may avail himself
of the following remedies: 1. Motion for
New Trial Relief from Judgment 2. Appeal
3. Relief from Judgment 4. Petition for
Review of Decree of Registration 5.
Action for Reconveyance 6. Quieting of
Title 7. Cancellation of Title 8. Action for
Damages 9. Action for Compensation
from the Assurance Fund 10. Annulment
of Judgment or Final Orders and
Resolutions 11. Reversion 12. Criminal
Prosecution
-Petition for Review of Decree of
Registration a. Requisites: 1. The
petitioner has a real and dominical right; 2.
That he has been deprived thereof (through
fraud); 3. That the action is filed within
one year from the issuance and entry of the
decree of registration; and 4. That the
property has not been transferred to an
innocent purchaser for value; b. To whom
available: Only to an aggrieved party who
has been deprived of land or any estate or
interest therein by decree of registration c.
When to file: Any time after the rendition
of the court’s decision and before the
expiration of 1 year from entry of decree
of registration
-d. Sole and ONLY Ground: Actual
Fraud 1. Actual fraud proceeds from an
intentional deception practiced by means
of misrepresentation or concealment of
material fact 2. The fraud must consist in
an intentional omission of fact required by
law to be stated in the application or a
wilful statement of a claim against the
truth 3. Any fraudulent act of the
successful party in a litigation which is
committed outside the trial of a case
against the defeated party, or his agents,
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attorneys or witnesses, whereby said
defeated party is prevented from
presenting fully and fairly his side of the
case
-Action for Reconveyance An action for
reconveyance is the remedy granted to the
rightful owner of land which has been
wrongfully or erroneously registered in the
name of another for the purpose of
compelling the latter to transfer or
reconvey the land to him.
-Reconveyance is available not only
to the legal owner of the property, but also
the the person with a better right than the
person under whose name said property
was erroneously registered
-When to file: a. Before issuance of
decree, or within/after 1 year from entry b.
If based on implied trust, 10 years; c. If
based on express trust and void contract,
or if the plaintiff is in possession of the
land, imprescriptible d. If based on fraud,
4 years from the discovery
-It does not reopen proceedings but
a mere transfer of the land from registered
owner to the rightful owner
-Action for Compensation from the
Assurance Fund Requisites: 1. That a
person sustains loss or damage, or is
deprived of any estate or interest in land;
2. On account of the bringing of land
under the operation of the Torrens System
arising after original registration; 3.
Through fraud, error, omission, mistake or
misdescription in a certificate of title or
entry or memorandum in the registration
book; 4. Without negligence on his part;
and 5. Is barred or precluded from
bringing an action for the recovery of such
land or estate or interest therein
-Reversion A reversion is instituted by the
government, through the Solicitor General
in all cases where lands of public domain
are held in violation of the Constitution or
were fraudulently conveyed
4. Cadastral registration-It is a proceeding in
rem, initiated by the filing of a petition for
registration by the government, not by the
persons claiming ownership of the land
subject thereof, and the latter are, on the
pain of losing their claim thereto, in effect
compelled to go to court to make known
their claim or interest therein, and to
substantiate such claim or interest. Unlike
other kinds of registration, this is
compulsory as it is initiated by the
government.
-Period of Filing: Extended up to
December 31, 2020
-Only unregistered lands may be the
subject of a Cadastral Survey The object of
cadastral proceedings is to “settle and
adjudicate” lands. Private lands are not
contemplated since ownership thereof had
already been finally determined and
adjudicated
E. SUBSEQUENT REGISTRATION-
Any transaction affecting such
originally registered land, if in order,
may be registered in the Office of
the Register of Deeds concerned
1. Voluntary dealings
-Dealings with unregistered land under act
3344 cannot defeat a person with a better right
e.g. 3rd person who trace their title under
registered land under the LRA
2. Involuntary dealings
-ADVERSE CLAIM A claim is adverse
when: a. Claimant’s right or interest in
registered land is adverse to the registered
owner, and b. Such right arose subsequent
to date of original registration, and c. No
other provision is made in the Decree for
the registration of such right or claimant
-Requisites for registration of an
adverse claim: a. The adverse claimant
must give a statement of the following in
writing: 1. His alleged right or interest 2.
How and under whom such alleged right
or interest is acquired 3. The description of
the land in which the right or interest is
claimed and 4. The number of the
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certificate of title b. The statement must
be: 1. Signed by the adverse claimant 2.
Sworn before a notary public c. The
statement must also state his residence or
the place to which all notices may be
served upon him
-a. 30 days from the date of
registration. b. After that the annotation of
adverse claim may be cancelled upon
filing of a verified petition by the party in
interest; Adverse claim is not ipso facto
cancelled after 30 days, hearing is
necessary
-LIS PENDENS Literally means “pending
suit.” It is an announcement to the whole
world that a particular real property is in
litigation. The inscription serves as a
warning that one who acquires an interest
over litigated property does so at his own
risk, or that he gambles on the result of the
litigation over the property.
-When notice of lis pendens is
proper: 1. To recover possession of real
estate 2. To quiet title 3. To remove clouds
upon the title thereof 4. For partition 5.
Other proceedings of any kind in court
directly affecting the title to land or the use
or occupation thereof or the buildings
thereon
-When notice of lis pendens is NOT
proper: 1. Proceedings for the recovery of
money judgments 2. Attachments 3.
Proceedings on the probate of wills 4.
Administration of the estate of deceased
persons 5. Levies on execution 6.
Foreclosure
-Process of Registration: By
Memorandum or Notice stating 1. The
institution of the action or proceeding 2.
The court wherein the same is pending 3.
The date of the institution of the action 4.
Reference to the number of the certificate
of title 5. Adequate description of the land
affected and registered owner thereo
-Cancellation of lis pendens Under
Sec. 4, Rule 13 of the 1997 Rules of Civil
Procedure, a notice of lis pendens may
cancelled on the following grounds: 1. The
annotation was for the purpose of
molesting the title of the adverse party; 2.
The annotation is not necessary to protect
the title of the party who caused it to be
recorded. Requisites: 1. Before final
judgment 2. Upon order of the court 3.
Upon Action by the Register of Deeds at
the instance of the party that caused the
registration or upon verified petition of the
latter; and 4. Must be due to the grounds
mentioned.
F. NON-REGISTRABLE PROPERTIES
G. DEALINGS WITH
UNREGISTERED LANDS
Ml. TORTS
A. PRNCIPLES
1. Abuse of right; elements-There is a legal
right or duty; 2. Which is exercised in bad
faith; 3. For the sole intent of prejudicing
or injuring another
2. Unjust enrichment
3. Liability without fault
4. Acts contrary to law-1. The act must be
willful or negligent; 2. It must be contrary
to law; and 3. Damages must be suffered
by the injured party.
5. Acts contrary to morals-1. There is an act
which is legal; 2. But which is contrary to
morals, good customs, and public policy;
and 3. It is done with intent to injure.
-Defenses: Plaintiff’s own negligence, implied
invitation to visit the premises of another,
attractive nuisance, assumption of risk,
emergency rule, last clear chance,
prescription, diligence required was
established, partial defenses of contributory
negligence
B. CLASSIFICATION OF TORTS
1. According to manner of commission
-intentional torts: Harmful consequences are
substantially certain to occur or are
intended
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 -negligent torts: The act or omission be adopted to avoid the impending danger,
merely creates a foreseeable risk or harm, is not guilty of negligence if he fails to
which may or may not actually be realized undertake what subsequently and upon
2. According to scope reflection may appear to be a better
solution, unless the emergency was
C. THE TORTFEASOR brought by his own negligence
1. Direct tortfeasor 4. Unreasonable risk of harm
a. Natural persons 5. Evidence
b. Juridical persons 6. Presumption of negligence
2. Persons made responsible for others 7. Defenses
3. Joint tortfeasors
H. SPECIAL LIABILITY m
D. PROXIMATE CAUSE PARTICULAR ACTIVITIES
l. Concept l. In general; concepts
2. Cause in fact 2. Products liability; manufacturers or processors
3. Efficient intervening cause 3. Nuisance
4. Cause as distinguished from condition 4. Violation of constitutional rights; violation of
5. Last clear chance-The antecedent civil liberties
negligence of the plaintiff does not 5. Violation of rights committed by public
preclude him from recovering damages officers
caused by the supervening negligence of 6. Provinces, cities and municipalities
the defendant, who had the last fair chance 7. Owner of motor vehicle
to prevent the impending harm by the 8. Proprietor of building or structure or thing
exercise of due diligence 9. Head of family
10. Violations of data privacy
E. LEGAL INJURY
1. STRICT LIABILITY
1. Concept
1. Animals; possessor and user of an animal
2. Elements of right
2. Nuisance
3. Violation of right or legal injury
3. Products liability; Consumer Act
4. Classes of injury

F. INTENTIONAL TORTS Mil. DAMAGES-Damages may be defined

l. General as the pecuniary compensation,
a. Concept recompense, or satisfaction for an injury
b. Classes sustained, or as otherwise expressed, the
2. Interference with rights to persons and pecuniary consequences, which the law
property imposes for the breach of some duty or the
3. Interference with relations violation of some right

G. NEGLIGENCE A. GENERAL CONSIDERATIONS

1. Concept
2. Good father of a family or reasonably prudent
person
3. Standard of care; emergency rule-.
Emergency rule An individual who
suddenly finds himself in a situation of
danger and is required to act without much
time to consider the best means that may
1. Classification
-General Damages Those which are the
natural and necessary result of the
wrongful act or omission asserted as the
foundation of liability. It includes those
which follow as a conclusion of law from
the statement of the facts of the injury.

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 -Special Damages Damages that arise from
the special circumstance of the case,
which, if properly pleaded, may be added
to the general damages which the law
presumes or implies from the mere
invasion of the plaintiff’s rights. Special
damages are the natural, but NOT the
necessary result of an injury. These are not
implied by law
2. Kinds of damages
a. Actual and Compensatory
--Two kinds of ACTUAL DAMAGES: 1.
Damnum emergens/ dano emergente -
actual loss or loss of what a person already
possesses 2. Lucrum cessans/lucro cesante
- a cession of gain or amount of profit lost
or loss of which would have pertained to a
person
-Net earning capacity = Life
Expectancy × (Gross annual income –
Reasonable living expenses)
-Life expectancy = × (80 – age of
victim at the time of death) General Rule:
Damages for loss of earning capacity shall
be awarded in every case, and that
claimant shall present documentary
evidence to substantiate claim for damages
-Exceptions: 1. If the deceased was
self-employed and earning less than the
minimum wage; or 2. The deceased was a
daily wage worker earning less than the
minimum wage under current labor laws.
-General Rule: Attorney’s fees and costs
of litigation are recoverable IF stipulated
-Exceptions: If there is no stipulation, they
are recoverable only in the following
cases: 1. By reason of malice or bad faith
a. When exemplary damages are awarded
b. In case of a clearly unfounded civil
action c. Where defendant acted in gross
and evident bad faith d. When at least
double judicial costs are awarded 2. By
reason of plaintiff’s indigence in a.
Actions for legal support b. Actions for
recovery of wages of laborers, etc. c.
Actions for workmen’s compensation 3.
By reason of crimes in a. Criminal cases of
malicious prosecution b. Separate actions
to recover civil liability arising from crime
4. By reason of equity a. Where the
defendant’s act compelled plaintiff to
litigate with third persons b. Where the
Court deems it just and equitabl
b. Moral-Its award is aimed at the restoration,
within the limits of the possible, of the
spiritual status quo ante, and it must be
proportional to the suffering inflicted
-Requisites for awarding moral damages
The conditions for awarding moral
damages are 1. There must be an injury,
whether physical, mental, or
psychological, clearly substantiated by the
claimant; 2. There must be a culpable act
or omission factually established; 3. The
wrongful act or omission of the defendant
must be the proximate cause of the injury
sustained by the claimant; and 4. The
award of damages is predicated on any of
the cases stated in Art. 2219 of the
-1. A criminal offense resulting in physical
injuries; 2. Quasi-delicts causing physical
injuries; 3. Seduction, abduction, rape, or
other lascivious acts; 4. Adultery or
concubinage; 5. Illegal or arbitrary
detention or arrest; 6. Illegal search; 7.
Libel, slander or any other form of
defamation; 8. Malicious prosecution; 9.
Acts mentioned in article 309; 10. Acts
and actions referred to in articles 21, 26,
27, 28, 29, 30, 32, 34, and 35. The parents
of the female seduced, abducted, raped, or
abused, referred to in No. 3 of this article,
may also recover moral damages. The
spouse, descendants, ascendants, and
brothers and sisters may bring the action
mentioned in No. 9 of this article, in the
order named
c. Nominal-1. Invasion or violation of any
legal or property right. 2. No proof of loss
is required. 3. The award is to vindicate
the right violated.
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d. Temperate -Crimes The crime was committed with an
e. Liquidated aggravating circumstance/s
f. Exemplary-Exemplary damages cannot be -Quasidelicts Defendant acted with gross
awarded alone: they must be awarded IN negligence
ADDITION to moral, temperate, -Contracts and Quasicontracts Defendant
liquidated or compensatory damages. acted in a wanton, fraudulent, reckless,
-3. The defendant must be guilty of malice oppressive, or malevolent manner
or negligence above the ordinary. 4. 3. When damages may be recovered-When
Plaintiff is not required to prove the Allowed The obligation to repair the
amount of exemplary damages. (a) But damages exists whether done intentionally
plaintiff must show that he is entitled to or negligently and whether or not
moral, temperate, or compensatory punishable by law
damage; that is, substantial damages, not
purely nominal ones. This requirement B. DAMAGES IN CASE OF DEATH
applies even if the contract stipulates
liquidated damages (b) The amount of C. GRADUATION OF DAMAGES
exemplary damage need not be pleaded in 1. Duty of injured party
the complaint because the same cannot be 2. Rules
proved. It is merely incidental or a. In crimes
dependent upon what the court may award b. In quasi-delicts
as compensatory damage c. In contracts and quasi-contracts
d. Liquidated damages
e. Compromise

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