NBV LMT For Bar 2022 On Civil and Commercial Laws

LAST-MINUTE TIPS FOR THE 2020/2021/2022 BAR EXAMINATIONS ON
THE LAW PERTAINING TO PRIVATE PERSONAL AND COMMERCIAL RELATIONS

BY ATTY. NICO B. VALDERRAMA, CPA, MPM, LLM
CIVIL LAW
LEGAL PERSONALITY; CAPACITY TO ACT into in accordance with law for the
establishment of conjugal and family life. By
1. Doctrine of PRESUMPTIVE PERSONALITY: A mere definition, same-sex marriages, even if
conceived child is presumed to have civil valid where celebrated, cannot be considered
personality for all purposes favorable to it valid in the Philippines.
provided that it is born in accordance with
Article 41 of the New Civil Code (NCC). 8. A marriage where any party is below 18, but
with consent of the parents and solemnized
2. JURIDICAL CAPACITY is the fitness to be the outside the Philippines and valid there as
subject of legal relations. NCC37 such, is VOID.FC26; FC35
3. CAPACITY TO ACT is the power to do acts 9. Those applying a marriage license NEED
with legal effects.NCC37 NOT BE OF LEGAL AGE on the date of the
filing of the application.DOJ Opinion No. 146, S. 1991
4. The legal capacity of aliens to enter into
contracts or marriage shall be governed by 10. ARE MARRIAGES ENTERED INTO FOR
their NATIONAL LAW pursuant to the PURPOSES OF MONEY VALID? Marriages
nationality principle. entered into for other purposes, limited or
otherwise, such as convenience,
5. CAN A PERSON companionship, money, status, and title,
DIE WITHOUT provided that they comply with all the legal
HAVING A requisites, are EQUALLY VALID.REPUBLIC VS.
LEGAL ALBIOS
PERSONALITY?
The Civil Code 11. A mere irregularity in the issuance of the
does not marriage license shall not render the marriage
explicitly state void, but the party responsible for the
that only those irregularity shall be CIVILLY, CRIMINALLY
who have AND ADMINISTRATIVELY LIABLE.FC5
acquired juridical personality could die. Death
has been defined as the cessation of life. Life 12. WHAT IS THE STATUS OF A MARRIAGE
is not synonymous with civil personality. One CELEBRATED USING AN EXPIRED
need not acquire civil personality first before MARRIAGE LICENSE? A marriage license is
he/she could die. Even a child inside the womb valid only for a period of 120 days from date
already has life. No less than the Constitution issue, and it is deemed automatically cancelled
recognizes the life of the unborn from upon expiration of said period. The marriage
conception, that the State must protect equally shall be void due to lack of one of the formal
with the life of the mother. If the unborn already requisites: valid marriage license.FC4; FC20
has life, then the cessation thereof even prior
to the child being delivered, qualifies as 13. A marriage celebrated without the required
death.CONTINENTAL STEEL VS. MONTANO parental advice remains VALID because
such is a mere irregularity in a formal
MARITAL RELATIONSHIPS requisite.FC4; FC16
6. WHO IS LEGALLY CAPACITATED TO 14. The duty of the local civil registrar in issuing
CONTRACT MARRIAGE? Any male or female the marriage license is PURELY
of the age of eighteen years or upwards not MINISTERIAL. He/she is not empowered to
under any of the impediments mentioned in rule upon the validity of the intended marriage
Articles 37 and 38 of the Family Code (FC).FC5 due to any known impediment.FC18
7. CAN SAME-SEX MARRIAGES BE 15. While a MARRIAGE CONTRACT is the best

CONSIDERED VALID IN THE PHILIPPINES? evidence of a marriage, the lack of it does not
No, Article 1 of the Family Code defines a negate the existence of a valid marriage.SPOUSES
marriage to be a special contract of permanent VILLANUEVA VS. CA
union between a man and a woman entered
“You didn’t reach this far just to make it this far.” - NBV
16. Divorce between Filipinos is VOID AND (c) when contracted through mistake of one
INEFFECTUAL under the nationality rule. contracting party as to the identity of the
Hence, any settlement of property between other;
the parties of the first marriage involving (d) if one of the parties in a subsequent
Filipinos submitted as an incident of such marriage is already a party to a prior
divorce obtained in a foreign country lacks marriage which has been annulled or
competent judicial approval, and cannot be judicially declared void but fails to comply
enforceable against the assets of the husband with the requirements of Article 52 of the
who contracts a subsequent marriage.LAVADIA VS. FC;
HEIRS OF LUNA
(e) where one of the parties to such marriage,
at the time of its celebration, is
17. A mayor who solemnized a marriage psychologically incapacitated to comply
BETWEEN AUGUST 3, 1988 AND with the essential marital obligations;
DECEMBER 31, 1991 did not have authority to (f) incestuous;
solemnize a marriage rendering the marriage (g) void by reason of public policy as
void.NCC56; FC7; LGC enumerated in Article 38 of the FC; and
(h) between members of the same sex.
18. WHEN ARE MARRIAGES CONSIDERED
VALID DESPITE ABSENCE OF A VALID 24. CAN A DIVORCE DECREE VALIDLY
MARRIAGE LICENSE? OBTAINED ABROAD BE RECOGNIZED IN
(a) Marriages in articulo mortisFC29; FC31; FC32; THE PHILIPPINES? As a general rule, divorce
(b) Marriages in remote placesFC28; decrees cannot be granted by Philippine
(c) Marriages among Muslims and members courts. However, a divorce obtained abroad by
of ethnic cultural communitiesFC33; an alien married to a Philippine national may
(d) Marriages celebrated abroad where a valid be recognized in the Philippines, provided the
marriage license is not required for validity decree of divorce is valid according to the
of such marriageFC26, and national law of the foreigner.BAYOT VS. CA Second,
(e) Ratification of marital cohabitationFC34. the reckoning point is not the citizenship of the
divorcing parties at birth or at the time of
19. In marital cohabitation, the FIVE-YEAR marriage, but their citizenship at the time a
PERIOD must be characterized with valid divorce is obtained abroad. And third, an
exclusivity and continuity.NINAL VS. BAYADOG absolute divorce secured by a Filipino married
to another Filipino is contrary to our concept of
20. What exempts contracting parties from the public policy and morality and shall not be
valid marriage license requirement under recognized in this jurisdiction.
Article 34 of FC is the FACT OF MARITAL
COHABITATION of at least 5 years, not the 25. A DIVORCE VALIDLY SECURED ABROAD
affidavit of such fact. that terminated the marriage between a
Filipino citizen and a foreigner may be given
21. The falsity of affidavit of marital cohabitation recognition in the Philippines regardless
(where no marital cohabitation existed for at whether who among the contracting parties
least 5 years) shall render the marriage VOID secured the divorce decree.REPUBLIC VS. MANALO
for lack of a valid marriage license.REPUBLIC VS.
BAYOT 26. If the marriage is annulled and the WIFE IS
THE INNOCENT PARTY, she may continue
22. A marriage celebrated through video using her former husband’s name, unless: (a)
conferencing where either or both parties do the court decrees otherwise, or (b) she or the
not appear personally before the solemnizing former husband is married again to another
officer is NOT VALID IF CELEBRATED IN THE person.NCC371
PHILIPPINES. If celebrated abroad, however,
and valid there as such, it shall likewise be 27. There can be NO INDEPENDENT
considered as valid in the Philippines. Same PROCEEDING for the express purpose of
rule applies with marriage by proxy.FC26; FC35 securing a judicial declaration that a person is
presumptively dead, except for purposes of
23. The following marriages are VOID even if such remarriage under Article 41 the FC.
are celebrated in a country where it is valid:
(a) where a party thereto is below 18 and he 28. Doctrine of TRIENNIAL COHABITATION
or she is a Filipino citizen; refers to the presumption that the husband is
(b) bigamous or polygamous; impotent should the wife still remain a virgin
after living together with the husband for at
least three years.
29. If INSANITY existed later than the date of 36. The judicial declaration required under Article
celebration of marriage, there could be no 40 of the FC is not necessary if the previous
action for annulment of marriage.FC45 marriage is between members of the SAME
SEX, since it is not a marriage defined under
30. In case of voidable marriages on the ground of Article 1 of the FC.
lack of parental consent, the parent or
guardian whose consent is required CANNOT 37. WHAT ARE THE REQUISITES FOR THE
FILE for the annulment of the voidable ISSUANCE OF JUDICIAL DECLARATION OF
marriage after the contracting party required PRESUMPTIVE DEATH?
to secure such consent has reached the age (a) The absent spouse has been missing for
of 21.FC47 four consecutive years, or two consecutive
years if the disappearance occurred where
31. The requisites for declaration of nullity of there is danger of death under the
marriage on the ground of psychological circumstances laid down in Article 391 of
incapacity are: the Civil Code;
(a) GRAVITY (serious enough that the (b) The spouse present wishes to remarry;
incapacitated party cannot assume the (c) The spouse present has a well-founded
marital and familial obligations), belief that the absentee spouse is dead;
(b) JURIDICAL ANTECEDENCE (the mental and
incapacity existed at the time of the (d) The spouse present files a summary
marriage though it manifested only later), proceeding for the declaration of
and presumptive death of the absentee.REPUBLIC
VS. NOLASCO
(c) INCURABILITY (the incapacity has no
cure, or if curable, the incapacitated has no
means to afford such cure).REPUBLIC VS. JAVIER 38. In asking for a judicial declaration of
presumptive death of an absent spouse for
32. DOES A PETITION FOR DECLARATION OF purposes of remarriage, the belief that the
NULLITY OF MARRIAGE DUE TO absent spouse is dead must be WELL-
PSYCHOLOGICAL INCAPACITY REQUIRE FOUNDED.FC41
EXPERT OPINION ON SAID INCAPACITY?
No, because under Sec. 2(d) of the new Rule 39. WHEN IS BELIEF OF ABSENT SPOUSE’S
on Declaration of Absolute Nullity of Void DEATH WELL-FOUNDED? In determining the
Marriages and Annulment of Voidable existence of a “well-founded belief,” the belief
Marriages, it has been clarified that a petition of the present spouse must be the result of
for declaration of nullity under Article 36 of the proper and honest to goodness inquiries and
Family Code need not allege expert opinion on efforts to ascertain the whereabouts of the
the psychological incapacity or on its root absent spouse and whether the absent spouse
cause. What must be alleged are the physical is still alive or is already dead. Whether or not
manifestations indicative of said incapacity. the spouse present acted on a well-founded
belief of death of the absent spouse depends
33. The property regime of a second marriage that upon the inquiries to be drawn from a great
is void under Article 40 (lack of judicial many circumstances occurring before and
declaration of nullity of a previous void after the disappearance of the absent spouse
marriage for purposes of remarriage) of the FC and the nature and extent of the inquiries
shall be either ABSOLUTE COMMUNITY OF made by the present spouse.REPUBLIC VS. CA &
ALEGRO
PROPERTY OR CONJUGAL PARTNERSHIP
OF GAINS depending on the date of
celebration of the second marriage.VALDEZ VS. RTC 40. Physical incapability to consummate
marriage, as a
34. DOES MERE REAPPEARANCE TERMINATE ground to annul a
THE SUBSEQUENT MARRIAGE marriage, refers
COTNTRACTED AFTER SECURING A to IMPOTENCY
JUDICIAL DECLARATION OF or the inability to
PRESUMPTIVE DEATH OF THE ABSENT perform a sexual
SPOUSE? No, it does not. It is the filing of an act, which is not
affidavit of reappearance that does.FC42 the same as
sterility (inability
35. The relative guardian or person having to produce an
legal charge of the insane in a voidable offspring).FC45
marriage and the sane spouse CANNOT
RATIFY said marriage.FC45; FC47
41. CAN A MARRIAGE BE ANNULLED ON THE 48. MAY COURTS ORDER SPOUSES TO LIVE
GROUND OF CONCEALMENT OF TOGETHER? Courts are powerless to order or
PREGNANCY IF THE WIFE DID NOT KNOW enforce the obligation of the spouses to live
SHE WAS PREGNANT AT THE TIME OF THE together.ILUSORIO VS. ILUSORIO-BILDNER
MARRIAGE? No, one of the requisites for such
ground is that the wife concealed the fact of 49. Either spouse may exercise any legitimate
pregnancy by another man from her husband profession, OCCUPATION, business or
at the time of celebration of marriage; and one activity without the consent of the other.FC73
cannot conceal a fact she did not know.FC46
50. In case of NON-CELEBRATION OF THE
42. In order for a sexually transmitted disease MARRIAGE, a donation propter nuptias is
(STD) to be a ground to annul a marriage, it revocable at instance of the donor, except
must be (a) existing at the time of the when said donation is embodied in a marriage
marriage, (b) serious, and (c) appears to be settlement in which case the donation is
incurable.FC45 If concealment of STD is to be a revoked by operation of law.FC81; FC86
ground, it need not be serious or incurable.FC46
51. A marriage settlement must be in writing in
43. In order for concealment of homosexuality order to be VALID.FC77
to be a ground to annul a marriage, the
concealment should vitiate the consent of the 52. For a marriage settlement to be
innocent party and such concealment ENFORCEABLE AGAINST THIRD PARTIES,
presupposes bad faith and INTENT TO it must be registered in the local civil registry
DEFRAUD the other party in giving consent to where the marriage contract is recorded as
the marriage.ALMELOR VS. RTC OF LAS PINAS well as in the registries of property. FC77
44. A threat to enforce one’s claim through 53. DONATIONS BETWEEN SPOUSES
competent authority, if the claim is just or (including those persons living together as
legal, DOES NOT VITIATE consent.NCC1335 If husband and wife without a valid marriage) are
such threat is made to obtain consent to a prohibited, except when it involves
marriage, it shall not be a ground for moderate gifts on the occasion of any family
annulment.FC45 rejoicing (and not family distress).FC87
45. In case of legal separation where violence 54. Under ACP, any property acquired during the
alleged also constitutes as violence specified marriage by gratuitous title by either spouse,
under RA 9262 (VAWC), NO COOLING-OFF including the fruits and income thereof,
period of 6 months shall be necessary before shall be considered EXCLUSIVE property.
the action can proceed.FC58 Under CPG, such property is exclusive, but the
fruits and income thereof are conjugal
46. ABANDONMENT, as a ground for legal properties.FC92,106
separation, must be without justifiable cause
and must have exceeded one year.FC55 55. Under ACP, the COMMUNITY property shall
consist of all the property owned by the
47. WHAT DEFENSES ARE AVAILABLE spouses at the time of the celebration of the
AGAINST AN ACTION FOR LEGAL marriage or acquired thereafter, unless
SEPARATION? An action for legal separation excluded under the FC or in the marriage
fails if one of the following grounds are invoked settlements.FC91
and proved:
(a) Condonation (forgiveness given after 56. WHEN DOES THE REGIME OF COMPLETE
commission of the ground); SEPARATION OF PROPERTY GOVERN THE
(b) Consent (given in advance of the PROPERTY RELATIONS OF THE SPOUSES?
commission of the ground); It governs when:
(c) Connivance (agreement of both spouses (a) Expressly declared in the marriage
to the ground); settlement; and
(d) Collusion (agreement to enable one (b) Ordered by a competent court.FC134
spouse to obtain legal separation)
(e) Mutual guilt (both spouses giving ground 57. Under CPG, all property acquired during the
for legal separation) marriage, whether the acquisition appears to
(f) Prescription (lapse of 5 years from have been made, contracted or registered in
occurrence of cause).FC56 the name of one or both spouses, is presumed
to be CONJUGAL, unless the contrary is
proved.FC116
58. Whatever may be lost during the marriage in be prima facie presumed to have no intention
any game of chance, betting, sweepstakes, or of returning to the conjugal dwelling.FC101; FC128
any other kind of gambling, whether permitted
or prohibited by law, shall be borne by the 64. If no liquidation of ACP/CPG is made within
loser and shall not be charged to the one year from the death of the deceased
community but any winnings therefrom shall spouse and the surviving spouse contracts a
form part of the COMMUNITY/CONJUGAL subsequent marriage, any disposition or
property.FC95; FC123 encumbrance involving the community
property of the terminated marriage shall be
59. A hidden treasure found by the husband in VOID.FC103; FC130
the lot exclusively owned by the wife shall
accrue in favor of the ACP or CPG.FC92; FC117 65. If no liquidation of ACP/CPG is made within
one year from the death of the deceased
60. The SEPARATION IN FACT between the spouse and the surviving spouse contracts a
spouses does not affect the property regime subsequent marriage, a MANDATORY
of the spouses.FC100; FC127 REGIME OF COMPLETE SEPARATION OF
PROPERTY shall govern the property relations
61. WHAT IS THE STATUS OF A DISPOSITION of the subsequent marriage.FC103,130
OF OR ENCUMBRANCE OVER A
COMMUNITY/CONJUGAL PROPERTY 66. The following are sufficient CAUSES FOR
WITHOUT THE CONSENT OF EITHER JUDICIAL SEPARATION OF PROPERTY:
SPOUSE? A disposition of or encumbrance (a) That the spouse of the petitioner has been
over a community/conjugal property without sentenced to a penalty which carries with
the consent or authority of either spouse shall it civil interdiction;
render such disposition or encumbrance void. (b) That the spouse of the petitioner has been
However, such transaction shall be construed judicially declared an absentee;
as a continuing offer on the part of the (c) That loss of parental authority of the
consenting spouse and the third person, and spouse of petitioner has been decreed by
may be perfected as a binding contract upon the court;
the acceptance by the other spouse or (d) That the spouse of the petitioner has
authorization by the court before the offer is abandoned the latter or failed to comply
withdrawn by either or both offerors.FC96; FC124 with his or her obligations to the family;
(e) That the spouse granted the power of
62. MAY A SPOUSE DONATE ANY administration in the marriage settlements
COMMUNITY/CONJUGAL PROPERTY has abused that power;
WITHOUT THE CONSENT OF THE OTHER (f) That at the time of the petition, the spouses
SPOUSE? Neither spouse may donate any have been separated in fact for at least
community/conjugal property without the one year and reconciliation is highly
consent of the other. However, either spouse improbable; and
may, without the consent of the other, make (g) Verified joint petition by the spouses.FC135;
FC136
moderate donations from the
community/conjugal property for charity or on
occasions of family rejoicing or family 67. WHEN DOES A SPOUSE BECOME THE
distress.FC98; FC125 ADMINISTRATOR OF ALL CLASSES OF
EXCLUSIVE PROPERTY OF THE OTHER
63. WHEN IS A SPOUSE CONSIDERED TO SPOUSE? The administration of all classes of
HAVE ABANDONED THE OTHER? A spouse exclusive property of either spouse may be
is deemed to have abandoned the other when transferred by the court to the other spouse:
her or she has left (a) When one spouse becomes the guardian
the conjugal of the other;
dwelling without (b) When one spouse is judicially declared an
intention of absentee;
returning. The (c) When one spouse is sentenced to a
spouse who has penalty which carries with it civil
left the conjugal interdiction; or
dwelling for a (d) When one spouse becomes a fugitive from
period of three justice or is in hiding as an accused in a
months or has criminal case.
failed within the same period to give any If the other spouse is not qualified because of
information as to his or her whereabouts shall just cause, the court shall appoint a suitable
person to be the administrator.FC142
68. WHAT ARE THE RULES ON EXPENSES (f) Subsequent marriage where there is
UNDER A REGIME OF COMPLETE failure to partition and distribute
SEPARATION OF PROPERTY? properties and delivery of presumptive
(a) Both spouses shall bear the family legitimes, and subsequent registration of
expenses in proportion to their income, or, such, including judgment of annulment or
in case of insufficiency or default thereof, termination of prior marriage
to the current market value of their
separate properties. 71. The following void marriages are governed by
(b) The liabilities of the spouses to creditors ARTICLE 148 of FC:
for family expenses shall, however, be (a) Bigamous or polygamous
solidary.FC146 (b) Incestuous
(c) Against public policy
69. PROPERTY REGIMES OF UNIONS (d) Subsequent marriage without judicial
WITHOUT BENEFIT OF MARRIAGE: declaration of presumptive death of first
BASIS ARTICLE 147 ARTICLE 148 and absent spouse
Man and woman (e) Subsequent marriage with judicial
Living together as husband and wife
declaration of presumptive death of first
Not capacitated
With capacity to to marry due to
and absent spouse where both parties
marry some legal are in bad faith; bigamous
APPLICABILITY impediments
Without benefit (adulterous, 72. WHAT SHALL GOVERN THE PROPERTY
of marriage or bigamous,
RELATIONS OF FILIPINOS WHO ENTERED
under void incestuous or
marriage void by reason INTO A SAME SEX MARRIAGE? In case of
of public policy) same-sex marriage, properties acquired by the
Exclusively couple shall be governed by the rules on co-
owned ownership, and not Articles 147 and 148 of FC.
SALARIES AND Owned in equal Married party:
WAGES shares property of ACP 73. The FC shall have RETROACTIVE EFFECT,
or CPG of except when such retroactive application
legitimate impairs vested rights.FC256
marriage
PROPERTIES
Remains PROPERTY
ACQUIRED
exclusive Remains
THROUGH
provided there exclusive
EXCLUSIVE
is proof 74. In order to be classified as property of PUBLIC
FUNDS DOMINION, an intention to devote it to
PROPERTIES
ACQUIRED BY Governed by
Owned by them public use or to public service is sufficient and
in proportion to it is not necessary that it must actually be used
BOTH THROUGH rules on co-
respective
THEIR ownership
contributions
as such.MANILA LODGE NO. 761 VS. CA
WORK/INDUSTRY
Presumed to be 75. WHAT DOES PUBLIC USE MEAN? Public use
obtained in their
joint efforts,
No presumption is that use which is not confined to privileged
of joint individuals, but is open to the indefinite public.
work or industry
acquisition.
and shall be
When there is
owned by them 76. Under Article 415(10) of NCC, a real right over
PROPERTIES evidence of joint
in equal shares.
ACQUIRED
Efforts in care
acquisition but an immovable property (such as land) is an
WHILE LIVING none as to the IMMOVABLE property as well. A mortgage on
and
TOGETHER extent of actual
maintenance of a parcel of land is only considered a real right
contribution,
family and if registered. Hence, an unregistered
there is a
household mortgage is a MOVABLE property, while a
presumption of
considered
contribution in
equal sharing. registered mortgage is an immovable
acquisition. property.
70. The following void marriages are governed by 77. A building of strong materials built on a land
ARTICLE 147 of FC: not owned by the builder is an IMMOVABLE
(a) Either or both parties are below 18 property.ASSOCIATED INSURANCE VS. IYA
(b) Lacking the authority of the solemnizing
officer 78. If a movable found is not treasure, it must be
(c) No valid marriage license RETURNED to the owner; otherwise, if the
(d) Mistake of identity finder retains it, he may be charged with
(e) Psychological incapacity theft.NCC719
79. WHEN IS A HOUSE CONSIDERED A use reasonable force to repel or prevent an

PERSONAL PROPERTY? A house is actual or threatened unlawful physical invasion
considered a personal property under the or usurpation of his property.NCC429 It may be
following instances: invoked by the owner or lawful possessor.
(a) if built using mixed materials, which by its
very nature is considered personal 83. DOCTRINE OF STATE OF NECESSITY: In the
property; enjoyment of his property, the owner cannot,
(b) if intended to be demolished, since what however, prohibit the interference by another
were really mortgaged are the materials if the same is necessary to avert an
imminent danger and the threatened
used;
damage, compared to the damage arising to
(c) if built on rented land, since an object
the owner from the interference, is much
placed on a land by one who only had
greater. The owner may, however, demand
temporary right to the same, does not from the person benefited indemnity for the
become immobilized by attachment; and damage to him.NCC432
(d) if built using strong materials, expressly
considered as personal property by the 84. A donation of IMMOVABLE property,
parties, and no innocent third parties will regardless of value, must be in a public
be prejudiced thereby. instrument.NCC749
80. OWNERSHIP refers to the independent right 85. ACTUAL POSSESSION under claim of
of exclusive enjoyment and control of the thing ownership raises disputable presumption of
for the purpose of deriving therefrom all ownership. The true owner must resort to
advantages required by the reasonable needs judicial process for the recovery of the
of the owner (holder of the right) and the property.NCC433
promotion of the general welfare but subject to
the restrictions imposed by law and the right of 86. THEORY OF IRREVINDICABILITY (OR
others. It includes the following rights: INDEFEASIBILITY): Possession in good faith
(a) Right to enjoy; of a movable is presumed ownership. It is
(b) Right over the fruits; equivalent to title, and no further proof is
(c) Right to possess; necessary.
(d) Right to use;
(e) Right to consume or abuse; 87. TREASURE refers to any hidden and unknown
(f) Right to dispose; deposit of money, jewelry, or other precious
(g) Right to recover; objects, the lawful ownership of which does
(h) Right to exclude others from the property; not appear.NCC439
(i) Right to enclose or fence his property;
(j) Right to compensation in case of eminent 88. TO WHOM
domain; BELONGS A
(k) Right to the surface, the sub-surface, and HIDDEN
the space above the land; TREASURE
(l) Right to hidden treasure; and FOUND? Hidden
(m) Right to accession. treasure belongs
to the owner of
81. WHAT ARE THE LIMITATIONS ON THE the land,
RIGHT OF OWNERSHIP? building, or other
(a) Police power, property on
(b) Power of eminent domain; which it is found.NCC438
(c) Power of taxation;
(d) Legal easements; 89. When the discovery of hidden treasure is
(e) Injunction of thoughtless extravagance; made on the property of another, or of the
(f) Lands acquired under free patent or State or any of its subdivisions, and by chance,
homestead; one-half thereof shall be allowed to the finder.
(g) Abuse of rights; If the finder is a TRESPASSER, he shall not be
(h) State of necessity; entitled to any share of the treasure.NCC438
(i) Testator’s prohibition; and
(j) Stipulations in a deed of restrictions 90. If the things found be OF INTEREST TO
SCIENCE OR THE ARTS, the State may
82. DOCTRINE OF SELF-HELP: In excluding acquire them at their just price, which shall be
others from the enjoyment of a property, the divided in conformity with Article 438 of the
owner or lawful possessor thereof may even NCC.NCC438
91. If the usufructuary accidentally finds hidden They are not even necessary parties, for a
treasure, he is entitled to HALF of it, for he is complete relief can be afforded in the suit even
considered a stranger.NCC438; NCC566 without their participation.CATEDRILLA VS. LAURON
92. CAN A CO-OWNER POINT TO A SPECIFIC 99. If the action is for the benefit of the co-owner
PORTION OF THE CO-OWNED PROPERTY alone who claims to be the sole owner and
AS HIS/HER OWN? By the nature of a co- entitled to the possession thereof, the ACTION
ownership, a co-owner cannot point to specific WILL NOT PROSPER, unless he/she impleads
portion of the property owned in common as the other co-owners who are indispensable
his/her own because his/her share therein parties.BALOLOY VS. HULAR
remains intangible.DAILISAN VS. CA
100. While a co-owner may bring an action in
93. Co-owners cannot agree that their benefits ejectment without the necessity of joining all
and/or charges in the co-ownership are NOT the other co-owners as co-plaintiffs, any
PROPORTIONAL to their respective interests. ADVERSE JUDGMENT cannot prejudice the
NCC485 rights of the unimpleaded co-owners.
However, any judgment of the court in favor of
94. CAN A CO-OWNER BE PREVENTED FROM the co-owner will benefit the others.PLASABAS VS.
CA
ALIENATING HIS/HER SHARE IN THE CO-
OWNERSHIP? A co-owner of an undivided
parcel of land is an owner of the whole, and
101. WILL A CO-OWNER BECOME THE SOLE
over the whole he/she exercises the right of OWNER OF A CO-OWNED PROPERTY
dominion, but he/she is at the same time the WHEN HE/SHE REDEEMS SAID PROPERTY?
owner of a portion which is truly abstract. No, a co-owner who redeems the property in
Hence, his/her co-owners have no right to its entirety does not make him/her the owner
enjoin a co-owner who intends to alienate or of all of it. The property remains in a condition
substitute his/her abstract portion or substitute of co-ownership as the redemption does not
a third person in its enjoyment.TORRES, JR. vs. LAPINID provide for a mode of terminating a co-
ownership.PAULMITAN VS. CA
95. WHEN CAN A CO-OWNER CLAIM TITLE
OVER A DEFINITE PORTION OF THE CO-
102. WHAT IS THE RIGHT IN FAVOR OF A
OWNED PROPERTY? During the existence of REDEEMING CO-OWNER? The one who
the co-ownership, no co-owner can claim title redeemed had the right to be reimbursed for
to any definite portion of the community the redemption price and until reimbursed,
property until the partition thereof, and prior to holds a lien upon the subject property for the
the partition, all that the co-owner has is an amount due.CABALES VS. CA
ideal or abstract quota or proportionate share
in the entire land or thing.PANGANIBAN VS. OAMIL
103. The SALE OR OTHER DISPOSITION OF
A CO-OWNER of the whole property affects
96. WHAT ARE THE LIMITATIONS TO A CO-
only his/her undivided share and the
OWNER’S RIGHT TO USE? transferee gets only what would correspond to
(a) It is use for the purpose intended; his/her grantor in the partition of the thing
(b) It must be use in such a way as not to injure owned in common,TORRES, JR. VS. LAPINID thereby
the interest of the other co-owners; and making the buyer a co-owner of the property.DE
FIGURACION VS. FIGURACION-GERILLA
(c) Such use does not prevent the other co-
owners from making use thereof according
to their own right.NCC486
104. WHAT IS THE PROPER ACTION IN CASE
A CO-OWNER HAS SOLD THE WHOLE
97. ANY ONE of the co-owners may bring an PROPERTY? The proper action is not for the
action in ejectment without joining the other nullification of the sale or for the recovery of
co-owners; the suit being deemed instituted possession of the thing owned in common
for the benefit of all.NCC487; SERING VS. PLAZO from the third person who substituted the co-
owner who alienated his/her share, but the
98. While all co-owners are real parties-in-interest division of the common property of the co-
in suits to recover properties, anyone of them owners who possessed and administered
may bring an action for the recovery of co- it.MERCADO VS. CA
owned properties. Only the co-owner who
filed the suit for the recovery of the co-owned 105. MAY A CO-OWNER BE OBLIGED TO
property becomes an INDISPENSABLE REMAIN IN CO-OWNERSHIP? No co-owner
PARTY thereto.ESTEBAN VS. SPOUSES MARCELO The shall be obliged to remain in the co-ownership.
other co-owners are not indispensable parties. Each co-owner may demand at any time the
partition of the thing owned in common, insofar 113. ACCESSION is the right of the owner of a
as his/her share is concerned, unless such thing to become the owner of everything that
partition is prohibited by law.NCC494 is produced thereby or which may be
inseparably attached or incorporated thereto,
106. CAN CO-OWNERS AGREE TO KEEP THE either naturally or artificially.NCC440
CO-OWNED PROPERTY UNDIVIDED FOR A
PERIOD OF TIME? Yes, an agreement to keep 114. ACCRETION does not automatically
the thing undivided for a certain period of time, become registered land just because the lot
not exceeding 10 years, shall be valid. This which receives such accretion is covered by
term may be extended by a new Torrens title.CUREG VS. IAC
agreement.NCC494
115. The accretion to registered land does not
107. HOW LONG CAN A DONOR OR preclude ACQUISITION of the additional area
TESTATOR PROHIBIT THE PARTITION OF by another person through
THE DONATED OR INHERITED PROPERTY? prescription.REYNANTE VS. CA
A donor or testator may prohibit partition for a
period which shall not exceed 20 years.NCC494 116. WHEN IS THE OWNER NOT ENTITLED
TO THE FRUITS?
108. DOES PRESCIPTION RUN IN FAVOR OF (a) In usufruct, the usufructuary shall be
A CO-OWNER/CO-HEIR AGAINST HIS/HER entitled to all the natural, industrial and civil
CO-OWNERS/CO-HEIRS? No prescription fruits of the property in usufruct.NCC526
shall run in favor (b) In lease of rural land, the lessee is entitled
of a co-owner or to the natural and industrial fruits of the
co-heir against thing leased while the lessor is entitled to
his/her co- civil fruits in the form of the rent paid by the
owners or co- lessee. NCC1654; NCC1676
heirs so long as (c) A possessor in good faith is entitled to the
he/she expressly fruits received by him/her before his/her
or impliedly possession is legally interrupted. NCC544
recognizes the (d) Fruits naturally falling upon adjacent land
co- belong to the owner of the said land and
ownership.NCC494 not to the owner of the tree. NCC681
109. The co-owners cannot demand a 117. To be deemed a BUILDER IN GOOD

physical division of the thing owned in FAITH, it is essential that a person asserts title
common, when to do so would render it to the land on which he/she builds, i.e., that
UNSERVICEABLE for the use for which it is he/she be a possessor in concept of owner,
intended.NCC495 The proper remedy is to sell the and that he/she be unaware that there exists
property and distribute the proceeds among in his/her title or mode of acquisition any flaw
the co-owners. which invalidates it.GR192268
110. HOW CAN A CO-OWNED PROPERTY BE 118. WHEN IS A BUILDER CONSIDERED IN

PARTITIONED? Partition may be made by BAD FAITH?
agreement between the parties or by judicial (a) If he/she is a buyer of a parcel of land who
proceedings.NCC496 constructed a house thereon, and he/she
is not an innocent purchaser for value;
111. Whenever the thing is ESSENTIALLY (b) When he/she ought to have been aware of
INDIVISIBLE and the co-owners cannot agree the binding effects of a decided case and
that it be allotted to one of them who shall the subsequent unconstitutionality of a law
indemnify the others, it shall be sold and its that granted the builder title and/or
proceeds distributed.NCC498 possession since all judicial decisions form
part of the law of the land; therefore, their
112. DOES A PARTITION AFFECT THIRD existence is a matter of mandatory judicial
PERSONS? The partition of a thing owned in notice;
common shall not prejudice third persons, who (c) If the builder’s occupation of the subject
shall retain the rights of mortgage, servitude or property was by mere tolerance, he/she is
any other real rights belonging to them before aware that his tolerated possession may be
the division was made.NCC499 terminated any time;
(d) If builder is a lessee; or
(e) If builder is a usufructuary.
119. DOES A RIPARIAN OWNER WHOSE apparent. It may be acquired by virtue of

LAND RECEIVES GRADUAL DEPOSITS OF prescription within a period of 10 years.NCC620
SOIL NEED TO MAKE AN EXPRESS ACT OF
POSSESSION BEFORE HE/SHE BECOMES 125. HOW IS A VOLUNTARY EASEMENT OF
THE OWNER THEREOF? No, the riparian RIGHT OF WAY TERMINATED? A voluntary
owner whose land receives the gradual easement of right of way, like any other
deposits of soil does not need to make an contract, could be extinguished only by mutual
express act of possession, and that no acts of agreement or by renunciation of the owner of
possession are necessary in that instance the dominant estate.UNISOURCE COMMERCIAL VS. CHUNG
because it is the law itself that pronounces the
alluvium to belong to the riparian owner from 126. An owner cannot, by his own act,
the time that the deposit created by the current ISOLATE his/her property from a public
of the water becomes manifest.REPUBLIC VS. SANTOS highway and then claim a right of way through
III
an adjacent estate.FRANCISCO VS. IAC
120. IF A RIVER DRIES UP, DOES THE 127. FOR PURPOSES OF EASEMENT OF
RIVERBED BELONG TO THE RIPARIAN RIGHT OF WAY, DOES THE DOMINANT
OWNER? No, the drying up of the river is not ESTATE NEED TO BE TOTALLY
accretion. Hence, the dried-up river bed LANDLOCKED? No, the estate need not be
belongs to the State as property of public totally landlocked as the isolation of the
dominion, not to the riparian owner, unless a dominant estate is also dependent on the
law vests the ownership in some other person. particular need of the dominant owner. What is
REPUBLIC VS. SANTOS III important to consider is whether or not a right
of way is necessary to fill a reasonable need
121. The registration under the Torrens system therefor by the owner.COSTABELLA CORP. VS. CA
does not protect the riparian owner against To
the DIMINUTION of the area of his/her 128. To be entitled to a compulsory right of
registered land through gradual changes in the way, it is necessary that the estate of the
course of an adjoining stream.VIAJAR VS. CA claimant of a right of way must be isolated and
without adequate outlet to a public
122. WHO OWNS THE RIVERBED THAT HAS highway.NCC649 The true standard for the grant
BEEN ABANDONED THROUGH THE of the legal right is “ADEQUACY.” COSTABELLA
CORP. VS. CA
NATURAL CHANGE OF THE COURSE OF
THE RIVER? Once the riverbed has been
abandoned through the natural change of the 129. Whenever there are several tenements
course of the river, the owners of the land surrounding the dominant estate, the right-of-
through which the new riverbed passes way must be established on the tenement
become the owners of the abandoned bed to where the distance to the public road or
the extent provided by Article 461 of the NCC. highway is shortest and where the least
There need be no act on their part to subject damage would be caused. If these two criteria
the old riverbed to their ownership, as it is (shortest distance and least damage) do not
subject thereto ipso jure from the moment the concur in a single tenement, the LEAST
mode of acquisition becomes evident, without PREJUDICE criterion must prevail over the
need of any formal act of acquisition.AGNE VS. shortest distance criterion.CALIMOSO VS. ROULLO
DIRECTOR OF LANDS
130. As between a right of way that would

123. WHAT IS AN EASEMENT? An easement demolish a store of strong materials to provide
is a real right which falls over the property egress to a public highway, and another right
itself. Or, from the viewpoint of the obligation of way which, although longer, will only
imposed, the servitude is imposed upon the require an avocado tree to be cut down, the
property itself and not upon its owner. Hence, second alternative should be
it is said that the easement or servitude is but PREFERRED.QUIMEN VS. CA
an accessory to the tenement of which it forms
part.SOLID MANILA VS. BIO HONG TRADING The easement is 131. For purposes of right of way, it is the needs
inseparable from the estate to which it actively of the dominant property which ultimately
or passively belongs.NCC617 determine the WIDTH OF THE PASSAGE.
And these needs may vary from time to
124. WHAT KIND OF EASEMENT MAY BE time.ENCARNACION VS. CA
ACQUIRED BY PRESCRIPTION? In order for
an easement to be acquired by virtue of
prescription it must be both continuous and
132. WHAT HAPPENS IF THE RIGHT OF WAY reason of circumstances, location, or

IS NO LONGER NECESSARY BECAUSE THE surroundings.
OWNER OF THE DOMINANT ESTATE HAS
JOINED IT TO ANOTHER ABUTTING ON A 137. A PUBLIC NUISANCE affects a
PUBLIC HIGHWAY AND SUCH PUBLIC community or neighborhood or any
HIGHWAY SUBSTANTIALLY MEETS THE considerable number of persons, although the
NEEDS OF THE DOMINANT ESTATE? The extent of the annoyance, danger or damage
owner of the servient estate may demand for upon individuals may be unequal. A private
the release of his/her estate from the servitude nuisance is one that is not included in the
by returning what he/she may have received foregoing definition.NCC695
by way of indemnity without interest. The
interest on the indemnity shall, instead, be 138. ARE THE REMEDIES OF ABATEMENT
considered as payment for the use of the AND RECOVERY OF DAMAGES
easement.NCC655 The same rule shall be applied ALTERNATIVE? No, the abatement of a
in cases where a new road is opened thereby nuisance does not preclude the right of any
giving access to the isolated estate.NCC655 person injured to recover damages for its past
existence.NCC697
133. WHAT JUSTIFIES THE IMPOSITION OF
THE SERVITUDE OF RIGHT OF WAY? In 139. The REMEDIES AGAINST A PUBLIC
order to justify the imposition of the servitude nuisance are:
of right of way, there must be a real, not a (a) A prosecution under the Penal Code or
fictitious or artificial necessity for it. Mere any local ordinance: or
convenience for the dominant estate is not (b) A civil action; or
what is required by law as the basis for setting (c) Abatement, without judicial
up a compulsory easement.DICHOSO VS. MARCOS proceedings.NCC699
134. PRESCRIPTION OF ACTIONS: 140. A PRIVATE

PRESCRIPTIVE PERSON may file
ACTION
PERIOD an action on
30 years Actions over immovables account of a
Mortgage public nuisance,
Written contract if it is specially
10 years
Obligation created by law injurious to
Judgment
himself.NCC703
8 years Recovery of movables
Oral contract
6 years
Quasi-contract
141. WHEN MAY A PRIVATE PERSON ABATE
5 years Law did not fix a period A PUBLIC NUISANCE? Any private person
Quasi-delict may abate a public nuisance which is specially
4 years Annul a contract injurious to him/her by removing, or if
Rescind a rescissible contract necessary, by destroying it, without
Forcible entry and unlawful committing a breach of the peace, or doing
1 year
detainer unnecessary injury.NCC704
Defamation
Recover possession de facto 142. The REMEDIES AGAINST A PRIVATE
nuisance are:
135. A NUISANCE is any act, omission, (a) A civil action; or
establishment, business, condition of property, (b) Abatement, without judicial
or anything else which: proceedings. NCC705
(a) Injures or endangers the health or safety

of others; or 143. WHAT IS THE REMEDY AVAILABLE TO
(b) Annoys or offends the senses; or A PERSON INJURED BY A PRIVATE
(c) Shocks, defies or disregards decency or NUISANCE? He/she may abate it by removing,
morality; or or if necessary, by destroying it, without
(d) Obstructs or interferes with the free committing a breach of the peace or doing
passage of any public highway or street, or unnecessary injury. However, it is
any body of water; or indispensable that the procedure for
(e) Hinders or impairs the use of extrajudicial abatement of a public nuisance by
property.NCC694 a private person be followed.NCC706
136. A nuisance PER SE is a nuisance at all

times and under any circumstance, while a
nuisance PER ACCIDENS is a nuisance by
144. A private person or a public official reimbursement from Y when Y becomes

extrajudicially abating a nuisance shall be solvent.
liable for DAMAGES: (j) E cannot sue X and/or Y based on QUASI-
(a) If he/she causes unnecessary injury; or CONTRACT, since the accident does not
(b) If an alleged nuisance is later declared by constitute any form of negotiorum gestio or
the courts to be not a real nuisance.NCC707 solutio indebiti.
(k) X is not criminally liable (DELICT) to either
145. CAN A NUISANCE BE LEGALIZED BY D or E since X is not the one who
LAPSE OF TIME? Lapse of time cannot committed the criminal act of negligence.
legalize any nuisance, whether public or (l) D and E cannot sue each other based on
private.NCC698 CONTRACT (because there is no contract
between D and E), QUASI-DELICT
OBLIGATIONS (because neither of the two is at fault or
negligent), DELICT (because neither of the
146. A TAXI OWNED BY X AND DRIVEN BY Y two is criminally at fault or negligent), and
FIGURED IN AN ACCIDENT DUE TO THE QUASI-CONTRACT (because nothing
NEGLIGENCE OF Y, CAUSING INJURY TO constitutes any form of negotiorum gestio
PASSENGER D AND PEDESTRIAN E. WHAT or solutio indebiti).
ARE THE RESULTING OBLIGATIONS? Hence:
(a) D may sue X for breach of CONTRACT due (a) D’s causes of action against X are based
to the injury sustained during transport. A on contract and quasi-delict.
contract of carriage is between D, being (b) D and E’s causes of action against Y are
the passenger, and X, being the operator based on quasi-delict and delict.
of the taxi. (c) E’s cause of action against X is based on
(b) D cannot sue Y for breach of CONTRACT quasi-delict only.
because Y is not a party to the contract of (d) If D or E files a criminal action (based on
carriage. Y is just an employee of X. delict) against Y, and Y is insolvent upon
(c) D may sue X and/or Y based on QUASI- conviction, X is subsidiarily liable for Y’s
DELICT. Y’s liability with X is solidary being civil liability to D or E.
the employer. If X proves exercise of due (e) D and E have no cause of action against X
diligence over Y, X is excused from liability. and/or Y based on quasi-contract.
If X pays, X may seek reimbursement from
Y. 147. An element of natural obligation before it
(d) D may sue Y only based on DELICT can be cognizable by the court is
because Y’s negligence resulting to injury VOLUNTARY FULFILLMENT by the
to D constitutes criminal negligence as obligor.NCC1423
well. If Y is convicted and is insolvent, X is
subsidiarily liable. If X pays, X may seek 148. If the obligation is DETERMINATE in the
reimbursement from Y when Y becomes sense that the object thereof is particularly
solvent. designated or physically segregated from all
(e) D cannot sue X and/or Y based on QUASI- others of the same class, the rights of the
CONTRACT, since the accident does not creditor are:
constitute any form of negotiorum gestio or (a) To compel specific performance; or
solutio indebiti. (b) To recover damages in case of breach of
(f) E cannot sue X for breach of CONTRACT, the obligation.NCC1165; NCC1170
since there is no contractual relationship
existing between E and X. 149. If the obligation is INDETERMINATE OR
(g) E cannot sue Y for breach of CONTRACT, GENERIC, the rights of the creditor are:
since there is no contractual relationship (a) To compel specific performance;
existing between E and X. (b) To ask for substitute performance
(h) E may sue X and/or Y based on QUASI- (comply at the expense of the debtor); or
DELICT. Y’s liability with X is solidary being (c) To recover damages in case of breach of
the employer. If X proves exercise of due the obligation.NCC1165; NCC1170; NCC1246
diligence over Y, X is excused from liability.
If X pays, X may seek reimbursement from 150. WHAT IS THE EXTENT OF LIABILITY IN
Y. DIFFERENT SOURCES OF OBLIGATIONS?
(i) E may sue Y only based on DELICT (a) Contract: joint, unless stipulatedNCC1207
because Y’s negligence resulting to injury (b) Quasi-contract: solidaryNCC2146; NCC2157
to E constitutes criminal negligence as (c) Delict: joint, unless provided by law
well. If Y is convicted and is insolvent, X is (d) Quasi-delict: solidaryNCC2194
subsidiarily liable. If X pays, X may seek
151. There is a SOLIDARY LIABILITY only: (e) When the object of the obligation is lost
(a) when the obligation expressly so states, and the loss occurs after the debtor has
(b) when the law requires solidarity, or incurred in delay
(c) the nature of the obligation requires (f) When the debtor promised to deliver the
solidarity.NCC1207 same thing to two or more persons who
do not have the same interest
152. A JOINT INDIVISIBLE OBLIGATION (g) When the obligation to deliver arises from
gives rise to indemnity for damages from the a criminal offense
time anyone of the debtors does not comply (h) When the obligation is generic
with his undertaking.NCC1224
158. Demand by the creditor is NOT
153. The penalty fixed in an obligation with a NECESSARY if:
penal clause SUBSTITUTES for damages in (a) the obligation or the law expressly so
case of breach, except when: (a) there is a declare;
contrary stipulation, (b) the debtor is sued for (b) when from the nature and circumstances
refusal to pay the agreed penalty, or (c) the of the obligation, the designation of time of
debtor is guilty of fraud.NCC1226 performance was a controlling motive for
its establishment; or
154. WHAT IS THE TEST OF DILIGENCE? Did (c) demand would be useless.NCC1169
the defendant in doing the alleged negligent
act use reasonable care and caution which an 159. WHAT IS THE REMEDY AGAINST A
ordinarily prudent person would have used in PARTY WHO FAILS TO PERFORM HIS/HER
the same OBLIGATION IN A RECIPROCAL
situation? OBLIGATION? It is a well-settled rule that the
injured party must invoke judicial aid. In
155. WHEN IS reciprocal obligations there is always a tacit
THE DEBTOR resolutory condition that if one party is unable
NOT HELD to comply with what is incumbent upon
LIABLE FOR him/her, the injured party has the power to
DAMAGES FOR rescind the obligation by going to court. Such
LOSS DUE TO rule can be applied only to a case where the
FORTUITOUS obligation is silent with respect to the power to
EVENT? If the obligation is determinate, as a rescind.NCC1191
general rule, the obligor or debtor cannot be
held liable for damages for loss due to 160. Where the COURTS ARE EMPOWERED
fortuitous event.NCC1262; NCC1174 TO FIX THE DURATION of the term or period:
(a) if the obligation does not fix a period but
156. There is a FORTUITOUS EVENT when the from its nature and circumstances it can
following requisites concur: be inferred that a period was intended by
(a) The event must be independent of the the parties;
will of the debtor; (b) if the duration of the period depends upon
(b) It must be either unforeseeable or the will of the debtor; or
unavoidable; (c) if the debtor binds himself/herself to pay
(c) The occurrence must render it when his/her means permit him to do
impossible for the debtor to fulfill the so.NCC1180; NCC1197
obligation in a normal manner; and
(d) The debtor must be free of participation 161. If there is an obligation to pay a sum in
in, or aggravation of the injury to the money, the rule of LEGAL TENDER
creditor. applies.NCC1249
157. WHEN IS A DEBTOR STILL HELD LIABLE 162. If there is no obligation to pay because the
IN CASE OF FORTUITOUS EVENT? payment of the price is merely incidental to
(a) Express provision of law the exercise of a right (such as payment of
(b) Declared stipulation by the contracting redemption price), the rule of LEGAL TENDER
parties IS NOT APPLICABLE.
(c) Nature of the obligation requires
assumption of risk 163. One of the requisites for compensation to
(d) When the object of the obligation is lost be proper is that the two debts are due. Hence,
and the loss is due partly to the fault of the if there are two debts and one is not yet due,
debtor NO COMPENSATION can take place.
164. WHAT ARE OBLIGATIONS WHICH ARE 169. If there is SHORTENING OF PERIOD of
NOT SUBJECT TO LEGAL payment, there is novation because the
COMPENSATION? debtor’s liability has changed, “hindi na sya as
(1) Debts arising from contracts of deposit liable as he/she originally was.”
(2) Debts arising from contracts of
commodatum (gratuitous loan of a thing) 170. DELEGACION VS. EXPROMISION:
(3) Claims for support due to gratuitous title KINDS OF
(4) Obligations arising from criminal offenses SUBSTITUTION
DELEGACION EXPROMISION
(PERSONAL
(5) Certain obligations in favor of the NOVATION)
government, such as taxes, fees, duties, CREDITOR’S
and others of a similar nature NCC1287,1288 CONSENT
Yes Yes
(indispensable
requirement)
165. A valid consignation (the deposit of the
ORIGINAL
object of the obligation in a competent court in DEBTOR’S Yes No
accordance with the rules prescribed by law, CONSENT
after refusal or inability of the creditor to NEW DEBTOR’S
Yes Yes
accept the tender of payment) requires TWO CONSENT
NOTICES to the creditor: (1) before making Right to Right to
reimbursement BENEFICIAL
the consignation, and (2) after consignation EFFECT OF
(how much was reimbursement
was made.NCC1257,1258 PAYMENT BY
paid by the new (how much was
NEW DEBTOR
debtor) and beneficial to the
166. WHEN IS PAYMENT TO subrogation original debtor)
No revival,
INCAPACITATED PERSONS CONSIDERED
REVIVAL OF UNLESS the
VALID? Payment to incapacitated persons is ORIGINAL insolvency was
considered valid: OBLIGATION IN already existing
No revival
(a) if he/she has kept the amount or thing paid CASE OF NEW and of public
or delivered, or DEBTOR’S knowledge or
INSOLVENCY known to the
(b) insofar as the payment has been beneficial debtor
to him/her.
In order to be considered BENEFICIAL to 171. WHAT IS THE DOCTRINE OF
him/her, the thing delivered or money paid CONSTRUCTIVE COMPLIANCE (OR
must be applied or spent for some rational, FULFILLMENT)? Under said doctrine, the
necessary, or useful purpose for the condition shall be deemed fulfilled when the
incapacitated person’s benefit. Hence, if the obligor (or debtor) voluntarily prevents its
incapacitated used the money to bet in lotto, it fulfillment. NCC1186 To apply, two requisites must
is not a valid payment and the debtor may still be present:
be demanded to pay once again. Betting in (a) the intent of the debtor to prevent
lotto is not considered a rational, necessary, or
fulfillment of the condition; and
useful act that benefits a person even if he/she
(b) actual prevention of compliance (or
wins the lotto.
fulfillment).
167. HOW DO WE DETERMINE WHETHER OR MERE INTENTION OF THE DEBTOR TO
NOT THERE IS NOVATION? There is PREVENT the happening of the condition, or
incompatibility when the two obligations to place ineffective obstacles to its
cannot stand together, each one having its compliance, without actually preventing the
independent existence. If the two obligations fulfillment, is insufficient.
cannot stand together, the latter obligation
novates the first. Changes that breed 172. ACQUITTAL of the defendant in a criminal
incompatibility must be essential in nature and case does not extinguish his/her liability for
not merely accidental. The incompatibility quasi-delict under Article 2176 of the New Civil
must affect any of the essential elements of the Code, unless (1) the acquittal is based on the
obligation, such as its object, cause or ground that he did not commit the offense
principal conditions thereof; otherwise, the charged, or (2) the fact from which the civil
change is merely modificatory in nature and liability may arise did not exist.
insufficient to extinguish the original obligation.
173. If the acquittal is based on the ground that
168. If there is EXTENSION OF PERIOD of the guilt has not been proved beyond
payment, there is no novation because the reasonable doubt, there may still be an action
debtor remains liable to pay as originally to recover damages based on QUASI-
agreed upon, “inextend lang.” DELICT.
CONTRACTS while one entered into by one prohibited to do

such is VOID in accordance with Articles 5 and
174. CHARACTERISTICS OF CONTRACTS: 1409(7) of the same Code.
(a) Obligatoriness: force of lawNCC1159
(b) Autonomy: free to stipulateNCC1306 182. An action for rescission under Article
(c) Mutuality: essential equality; in equal 1383 of the NCC is a SUBSIDIARY remedy or
footingNCC1308 a remedy of last resort.
(d) Relativity: binding upon contracting
partiesNCC1311 183. A contract entered into by contracting
parties who are BOTH INCAPACITATED to
175. IS FORM A REQUISITE FOR VALIDITY enter into contracts is unenforceable.NCC1403
OF CONTRACTS? As a general rule, no form
is required in order to make the contract 184. GENERAL
binding and effective between the parties RULE: If the
thereto, except those which are required to be contract is
in some form in order that they may be valid; unauthorized, or
and those which are required to be in some entered into by
form in order that they may be enforceable or one on behalf of
in order that they may be proved in a certain another without
way.NCC1356 authorization, the
contract is
176. If the LAW REQUIRES an act or contract unenforceable.
to be in a document or other special form, the EXCEPTION: If the unauthorized contract
contracting parties may compel each other to relates to the sale of a parcel of land, in which
observe that form, once the contract has been case, the contract is void pursuant to Article
perfected. This right may be exercised 1874 of the NCC.
simultaneously with the action upon the
contract.NCC1357 185. GENERAL RULE: A void or inexistent
contract does not produce legal effects.
177. CONTRACTS OF ADHESION: where one CONSEQUENCE: If the void contract is
party imposes a ready-made form of contract already performed, generally the law allows
which the other party may accept or reject but recovery of what was delivered by reason of a
cannot modify; one party prepares the void contract. EXCEPTION: when recovery is
stipulation in the contract, while the other party not allowed:
merely affixes his signature or his “adhesion” (a) In Illegal contracts (contracts whose
thereto, giving no room for negotiation and object, cause or purpose is contrary to law,
depriving the latter of the opportunity to morals, good customs, public order or
bargain on equal footing; generally valid; public policy) and both parties are equally
construed strictly against the one who at fault, or in pari delicto, the court cannot
drafted the same. come to the aid of any of the parties and
will simply leave them where they are.
178. A qualified acceptance constitutes a Hence, no recovery is allowed under the
COUNTER-OFFER.NCC1319 principle of in pari delicto.
(b) When the one recovering is guilty of
179. Acceptance made by letter or telegram laches, or he/she slumbered on his right
does not bind the offerer except from the time for an unreasonable length of time.
it CAME TO HIS KNOWLEDGE.NCC1319
186. The principle of IN PARI DELICTO (the law
180. WHO ARE THE PERSONS leaves where the parties are) only applies in
INCAPACITATED TO GIVE CONSENT? void contracts, but not in inexistent
(a) Minors contracts.NCC1411
(b) Insane or demented persons, unless the
contract was entered into during a lucid 187. An oral contract of sale of land, though
interval unenforceable, is VALID as long as all
(c) Deaf-mutes who do not know how to write essential requisites are present.NCC1458
(d) In a state of drunkenness or under a
hypnotic spellNCC1327; NCC1328 188. The Statute of Frauds applies only to
EXECUTORY contracts; hence, it won’t apply
181. A contract entered into by an in contracts where there is partial performance
incapacitated person is merely VOIDABLE in already.NCC1405
accordance with Article 1390 of the NCC,
189. There are only three transactions involving 196. If the parties to a contract of sale are
real property covered by the STATUTE OF husband and wife who are LEGALLY
FRAUDS: SEPARATED, the contract is valid, since
(a) sale of real property; those who are legally separated had a judicial
(b) lease of real property for a period longer separation of properties.NCC1490
than one year; and
(c) express trust over an immovable 197. IS FORM AN ESSENTIAL REQUISITE IN
property.NCC1403; NCC1443 ORDER FOR A SALE TO BE VALID? Sale is a
consensual contract. No form is required for its
190. A REAL ESTATE MORTGAGE contract is validity. It can be in writing, by word of mouth,
not covered by the Statute of Frauds. partly in writing and partly by word of mouth,
or it can be inferred from the conduct of the
191. WHAT ARE THE REQUISITES OF parties.NCC1483 Exceptions: The following must
TORTIOUS INTERFERENCE OF be in writing to be enforceable:NCC1357; NCC1403
CONTRACTS? (a) Sale of personal property at a price not
(a) Existence of a valid contract less than P500.00
(b) Knowledge on the part of the third person (b) Sale of real property or an interest therein
of the existence of the contract (c) Sale of property not to be performed within
(c) Interference of the third person without a year from the date thereof
legal justificationNCC1314 (d) When an applicable statute requires that
the contract of sale be in a certain form
192. IS ACTUAL KNOWLEDGE OF 198. WHAT IS THE CONSEQUENCE OF
CONTRACT ESSENTIAL IN TORTIOUS ENTERING INTO A CONTRACT OF SALE IN
INTERFERENCE OF CONTRACTS? VIOLATION OF SOMEONE’S RIGHT OF
Knowledge of the subsistence of the contract FIRST REFUSAL? A contract of sale entered
is an essential element to state a cause of into in violation of a right of first refusal of
action for tortuous interference. A defendant in another person, while valid, is rescissible.TANAY
such a case cannot be made liable for RECREATION VS. FAUSTO
On the other hand, if the third
interfering with a contract he/she is unaware person acted in good faith (or without
of. While it is not necessary to prove actual knowledge of the grantee’s right of first refusal,
knowledge, he/she must nonetheless be the contract cannot be rescinded. Instead, the
aware of the facts which, if followed by a remedy of the grantee is simply recovery of
reasonable inquiry, will lead to a complete damages against the grantor.
disclosure of the contractual relations and
rights of the parties in the contract.LAGON VS. CA 199. WHAT IS AN EQUITABLE MORTGAGE?
WHEN IS IT PRESUMED? An equitable
193. Sale is perfected by consent, but mortgage is one which lacks the proper
OWNERSHIP is transferred only upon formalities, form of words, or other requisites
delivery, whether actual or constructive, prescribed by law for a mortgage, but shows
unless there is reservation of ownership or the intention of the parties to make the
when the law provides for when the ownership property, subject of the contract, as a security
is transferred.NCC1458 for a debt and contains nothing impossible or
contrary to law. It is presumed:
194. The MANNER OF PAYMENT of the (a) When the price of a sale with right to
purchase price is an essential element before repurchase is unusually inadequate;
a valid and binding contract of sale can exist (b) When the vendor remains in possession as
since the agreement on the manner of lessee or otherwise;
payment goes into the price such that a (c) When upon or after the expiration of the
disagreement on the manner of payment is right to repurchase another instrument
tantamount to a failure to agree on the extending the period of redemption or
price.SWEDISH MATCH AB VS. CA granting a new period is executed;
(d) When the purchaser retains for himself a
195. WHAT IS THE EFFECT OF FAILURE TO part of the purchase price;
DETERMINE THE PRICE IN A CONTRACT (e) When the vendor binds himself to pay the
OF SALE? taxes on the thing sold;
(a) Where the contract is EXECUTORY: The (f) In any other case where it may be fairly
contract is INEFFICACIOUS. inferred that the real intention of the parties
(b) Where the thing has been DELIVERED to is that the transaction shall secure the
and APPROPRIATED by the buyer: The payment of a debt or the performance of
buyer must pay a REASONABLE PRICE any other obligation.NCC1602
therefor.
200. WHAT ARE THE REQUISITES FOR (b) If there is judicial demandNCC2212
SOLUTIO INDEBITI?
(a) Receipt of something 209. WHEN IS INTEREST RECOVERABLE
(b) There was no right to demand it. DESPITE ABSENCE OF STIPULATION?
(c) The undue delivery was because of (a) If the obligation consists in the payment of
mistake. a sum of money, and the debtor incurs in
delayNCC2209
201. GIVE EXAMPLES OF SOLUTIO INDEBITI. (b) Allowed upon damages awarded for
(a) Erroneous payment of interest not due. breach of contractNCC2210
(b) Erroneous payment of rental not called for (c) In crimes and quasi-delicts, in the
in view of the expiration of the lease discretion of the courtNCC2211
contract. (d) Legal interest from the time it is judicially
(c) Taxes erroneously given. demandedNC2212
202. CAN A MINOR BE AN AGENT? Yes. 210. With regard to an award of INTEREST IN
Insofar as third persons are concerned, it is THE CONCEPT OF DAMAGES, the rate of
enough that the principal is the one interest, as well as the accrual thereof is
capacitated, for generally an agent assumes imposed as follows:
no personal liability. As between the minor- (a) When the obligation breached consists of
agent and principal, the minor can invoke his payment of a sum of money, in the
incapacity, unless he/she is in estoppel. absence of an agreement, the rate shall be
the legal rate (6%) computed from delay.
LOAN AND MORTGAGE (b) In other cases, the rate of interest shall be
6% per annum.
203. In contracts of simple loan or MUTUUM, (c) When the judgment of the court awarding
there is transfer of ownership over the thing a sum of money becomes final and
loaned, while in COMMODATUM, there is executory, the rate of legal interest, shall
none.NCC1933 be 6% per annum from finality until its
satisfaction, this interim period being
204. WHAT IS THE NATURE OF DEPOSITS deemed to be by then an equivalent to a
OF MONEY IN BANKS? Deposits of money in forbearance of credit.NACAR VS. GALLERY FRAMES
banks are really loans to a bank because the
bank can use the same for its ordinary 211. USURIOUS INTEREST VS.
transactions and UNCONSCIONABLE INTEREST
for the banking UNCONSCIO-
USURIOUS
business in which ATTRIBUTES NABLE
INTEREST
it is engaged. INTEREST
Bank deposits one which
one which is either enslaves
are in the nature
greater than the borrowers or
of irregular DEFINITION
rate allowed by leads to a
deposits; they are law hemorrhaging
really loans of their assets
because they the stipulation
earn interest. Under Article 1980 of the NCC, as to payment
such stipulation
they are governed by the provisions EFFECT ON
is void, as if
of interest
concerning simple loans.BPI VS. CA STIPULATED remains and
there is no
INTEREST only the rate is
stipulation at all
205. DEATH of either party extinguishes the considered
invalidated
contract of commodatum.NCC1939
206. The BORROWER in a commodatum 212. While there is no ceiling imposed on

cannot lend or lease the thing loaned to a agreed interest rates as required under the
third person, but the members of his/her Usury Law, courts may REDUCE said rates if
household may use it.NCC1939 the rates are iniquitous, unreasonable,
unconscionable, or shocking to the judicial
sensibilities of the court.
207. No INTEREST shall be due unless it has
been expressly stipulated in writing.NCC1956
213. The liability of an accommodation
mortgagor extends only up to the LOAN
208. WHEN DOES ACCRUED INTEREST
VALUE OF THE MORTGAGED PROPERTY
EARN INTEREST? (not to the entire loan itself) at the time of
(a) If there is agreement to this effectNCC1959, or
constitution of the mortgage.SPOUSES BELO VS. PNB
214. While a real estate mortgage is not valid if 224. WHAT ARE THE REQUISITES OF
not registered with the Register of Property, it ACCION IN REM VERSO?
remains BINDING BETWEEN THE PARTIES (a) The defendant has been enriched.
who have the right to demand the execution (b) The plaintiff has suffered a loss.
and recording of the document.NCC2125 (c) The enrichment of the defendant is without
just or legal ground.
215. The mortgage follows the property. (d) The plaintiff has no other action based on
Whoever is in possession, the property contract, quasi-contract, crime, or quasi-
CONTINUES TO SECURE the obligation for delict.
whose security it was constituted.NCC2126
225. WHAT ARE THE ELEMENTS OF QUASI-
216. Even while in possession of a third DELICT?
person, a creditor may demand payment from (a) Act or omission
said third person of the PART OF THE CREDIT (b) Constituting fault or negligence
SECURED by the mortgaged property.NCC2129 (c) Damage or injury caused by the said act
or omission
217. Rules on third persons related to real (d) Causal relation between the damage and
estate mortgage apply if such mortgage is the act or omission
RECORDED in accordance with law.NCC2125 (e) There is no pre-existing contractual
relation between the partiesNCC2176
TORTS
226. An action upon quasi-delict must be
218. TORT consists in the violation of a right instituted within FOUR YEARS.NCC1146
given or the omission of a duty imposed by
law.NAGUIAT VS. NLRC 227. DOES ARTICLE 2176 ENCOMPASS ALL
ACTIONABLE WRONGS?
219. WHAT ARE THE ELEMENTS OF AN LEGAL
APPLICATION
PROVISIONS
ACTIONABLE CONDUCT? The elements of
Principle of abuse of rights; does not
an actionable conduct are: Article 19
provide a remedy for its violation
(a) duty, Applies to both willful and negligent
(b) breach, Article 20
acts; involves a violation of law
(c) injury, and Article 21 Applies only to willful acts
(d) proximate causation.GARCIA VS. SALVADOR Applies to both willful and negligent
acts; does not involve a breach of an
Article 2176
220. DEFINE INJURY, DAMAGE, AND existing law or a pre-existing
DAMAGES. contractual obligation
(a) Injury: the illegal invasion of a legal right
(b) Damage: the loss, hurt, or harm which 228. PROXIMATE CAUSE is that which, in
results from the injury natural and continuous sequence, unbroken
(c) Damages: the recompense or by an efficient intervening cause, produces
compensation awarded for the damage injury, and without which, the result would
sufferedSPOUSES CUSTODIO VS. CA not have occurred.
221. The elements of ABUSE OF RIGHT are: 229. EFFICIENT INTERVENING CAUSE is one
(a) existence of a legal right or duty, which destroys the causal connection
(b) exercise in bad faith, and between the negligent act and the injury and
(c) sole intent of prejudicing or injuring thereby negatives liability.
another.NCC19
230. ARTICLE 2183 of the NCC holds the
222. Any person who willfully (if negligent only, possessor liable even if the animal should
not applicable) causes loss or injury to another "escape or be lost" and so be removed from
in a manner that is CONTRARY TO MORALS, his control. And it does not matter either that
good customs or public policy shall the animal was tame and was merely provoked
compensate the latter for the damage. NCC21 by the victim into biting him/her. The law does
not speak only of vicious animals but covers
223. BREACH OF PROMISE TO MARRY per se even tame ones as long as they cause
is not an actionable wrong, unless: injury.VESTIL VS. IAC
(a) there is fraud or deceit,
(b) expenses are already incurred, or
(c) when the woman was forcibly abducted
and raped.NCC21
231. WHO ARE THE PERSONS VICARIOUSLY iii. that it exercised due diligence in
LIABLE UNDER ARTICLE 2180 OF NCC? selecting or supervising its employee.
VICARIOUSLY FOR DAMAGES CAUSED
LIABLE BY: 235. Under the ENROLLMENT CONTRACT,
children below 21 years old schools have the built-in obligation to ensure
Parents
who live in their company the safety of the student while they are inside
wards below 21 years old or the school premises. But the school is not the
incapacitated persons who are
Guardians insurer of its students against all risks. Thus,
under their authority and live
the school may still avoid liability by proving
in their company
employees in the service of that the breach of its contractual obligations is
Owners and not due to its negligence.ST. LUKE’S COLLEGE VS. PEREZ
the branches in which the
managers of an
latter are employed or on the
establishment 236. GENERAL
occasion of their functions
employees and household RULE: Every
helpers acting within the person obliged to
scope of their assigned tasks, give something is
Employers
even though the former is not also obliged to
engaged in any business or take care of it with
industry
the proper
State special agent
diligence of a
Teachers and
pupils and students or good father of a
heads of
apprentices while in their family. EXCEPTION: when the law or the
establishments of
custody stipulation of the parties requires another
arts and trades
standard of care
232. The defense of exercise of diligence of a
good father of a family in the selection and 237. WHEN IS NEGLIGENCE PRESUMED?
supervision of employees is not a proper and (a) Motor vehicle mishaps
complete defense under CULPA (b) Possession of dangerous weapons or
CONTRACTUAL, but in CULPA substances
ACQUILIANA, it is a proper and complete (c) Common carriers
defense in so far as employers are (d) Cases where res ipsa loquitur applies
concerned.NCC2180
238. The presumption of negligence in motor
233. While the proof of negligence required vehicle mishaps shall only apply if the
under culpa contractual and culpa acquiliana negligence is the PROXIMATE CAUSE of the
is PREPONDERANCE OF EVIDENCE, under injury or damage suffered.ANONUEVO VS. CA, NCC2185
culpa criminal, what is required is PROOF
BEYOND REASONABLE DOUBT. 239. There is due diligence of the employer
exercised in the SUPERVISION OF
234. WHEN IS THE EMPLOYER WHO IS ALSO EMPLOYEES if the employer carefully
THE REGISTERED-OWNER OF THE examined the applicant for employment as to
VEHICLE WHICH CAUSED THE DAMAGE his/her qualifications, experience, and record
OR INJURY HELD LIABLE? of service.REYES VS. DOCTOLERO
(a) The plaintiff must first establish that the
employer is the registered owner of the 240. There is due diligence of the employer
vehicle in question. exercised in the SUPERVISION OF
(b) Once the plaintiff successfully proves EMPLOYEES if the employer established rules
ownership, there arises a disputable and regulations, implemented them,
presumption that the requirements of monitored its implementation, and subjected
Article 2180 of the NCC have been proven. erring employees to disciplinary actions. REYES
VS. DOCTOLERO
(c) As a consequence, the burden of proof
shifts to the defendant to show that no
liability under Article 2180 has arisen. 241. DOCTRINE OF LAST CLEAR CHANCE:
(d) But employer has three available The negligence of the plaintiff does not
DEFENSES: preclude a recovery for the negligence of the
i. it may prove absence of employer- defendant where it appears that the defendant,
employee relationship; by exercising reasonable care and prudence,
ii. it may prove that the time of incident, might have avoided injurious
employee was not acting within the consequences to the plaintiff notwithstanding
scope of his assigned task; or the plaintiff’s negligence.
242. The person who has the last fair chance 248. RES IPSA LOQUITUR: “the thing speaks
to avoid the impending harm and fails to do for itself” ; where the thing which causes injury
so is chargeable with the consequences, is shown to be under the management of the
without reference to the prior negligence of the defendant, and the accident is such as in the
other party.PICART VS. SMITH ordinary course of things does not happen if
those who have the management use proper
243. The ELEMENTS of the doctrine of last care, it affords reasonable evidence, in the
clear chance are: absence of an explanation by the defendant,
(a) plaintiff was in a position of danger and, that the accident arose from want of care.
by his own negligence, became unable to
escape from such position by the use of 249. REQUISITES OF RES IPSA LOQUITUR:
ordinary care; (a) The occurrence of an injury
(b) The thing which caused the injury was
(b) defendant knew that the plaintiff was in a
under the control and management of
position of danger or in the exercise of
the defendant
ordinary care should have known such;
(c) The occurrence was such that in the
(c) defendant had the last clear chance to ordinary course of things, would not have
avoid the accident by the exercise of happened if those who had control or
ordinary care but failed to exercise such management used proper care, and
last clear chance; and (d) The absence of explanation by the
(d) the accident occurred as a proximate defendant
result of such failure.
250. DEFENSES AVAILABLE TO A
244. GROSS NEGLIGENCE implies a want or DEFENDANT IN CASE INVOLVING
absence of or failure to exercise slight care or NEGLIGENCE:
diligence, or the entire absence of care. It (a) Plaintiff’s negligence
evinces a thoughtless disregard of (b) Due diligence
consequences without exerting any effort to (c) Contributory negligence
avoid them. It is characterized by want of even (d) Fortuitous event
slight care, acting or omitting to act in a (e) Damnum absque injuria
situation where there is a duty to act, not (f) Authority of law
inadvertently but willfully and intentionally with (g) Assumption of risk
a conscious indifference to consequences in (h) Doctrine of last clear chance
so far as other persons may be affected.ILAO- (i) Prescription
ORETA VS. RONQUILLO (j) Involuntariness
(k) Waiver
245. CAN PARTIES STIPULATE THAT EITHER (l) Proscription against double recovery
PARTY SHALL NOT BE HELD LIABLE IN
CASE OF GROSS NEGLIGENCE? Since 251. DEATH is not a defense and case will
exemplary damages may be granted if the continue through the legal representative.
defendant acted with gross negligence and
exemplary damages may not be renounced in 252. DOCTRINE OF RELATIONS (OR
advance, advanced waiver of actions that may RELATIONS BACK DOCTRINE): The doctrine
arise from gross negligence shall be void.NCC223; should be applied where the injury was
NCC,2235 discovered long after the accident. The
offended party should not be prejudiced in
246. Because MEDICAL MALPRACTICE cases such case and the prescriptive period
are often highly technical, expert testimony is should commence to run only upon
usually essential to establish: discovery of the injury. (example: HIV
(a) the standard of care that the defendant contamination from blood transfusion)
was bound to observe under the
circumstances; 253. DOCTRINE OF ATTRACTIVE
(b) that the defendant’s conduct fell below NUISANCE: One who maintains on his
the acceptable standard; and premises dangerous instrumentalities or
(c) that the defendant’s failure to observe the appliances of a character likely to attract
industry standard caused injury to his children at play, and who fails to exercise
patient. BORROMEO VS. FAMILY CARE HOSPITAL ordinary care to prevent children from playing
therewith or resorting thereto, is liable to a
247. BUT: An expert witness is not necessary as child of tender years who is injured thereby,
the res ipsa loquitur doctrine is applicable.ROSIT even if the child is technically a trespasser in
VS. DAVAO DOCTORS HOSPITAL the premises.HIDALGO ENTERPRISES VS. BALANDAN
254. SALIENT FEATURES OF THE DAMAGES

CONSUMER ACT:
(a) Who are liable: suppliers of durable or 255. To recover ACTUAL DAMAGES, it must
non-durable consumer products be: pleaded, prayed for, and proven.
(b) Nature of liability: jointly liable
(c) Sources of liability: 256. LOSS OF EARNING CAPACITY is
i. imperfections in quality that render the computed as:
products unfit or inadequate for 𝟐
(𝟖𝟎 − 𝒂𝒈𝒆 𝒐𝒇 𝒕𝒉𝒆 𝒅𝒆𝒄𝒆𝒂𝒔𝒆𝒅) ∗ (𝑮𝑨𝑬 − 𝑵𝑳𝑬)
consumption for which they are 𝟑
designed or decrease their value, and
ii. those resulting from inconsistency with where GAE means gross annual earnings and
the information provided on the NLE means necessary living expenses which
container, packaging, labels or is presumed to be 50% of GAE in the absence
publicity messages/advertisement, of actual proof.PEOPLE VS. WAHIMAN
with due regard to the variations
resulting from their nature 257. As a rule, documentary evidence should
(d) Duty of the suppliers: correct the be presented to SUBSTANTIATE THE CLAIM
imperfection FOR LOSS OF EARNING CAPACITY. By way
(e) Remedy in case of breach of duty: within of exception, damages for loss of earning
30 days, the consumer may alternatively capacity may be awarded despite the absence
demand at his option: of documentary evidence when:
i. the replacement of the product by (a) the deceased is self-employed and earning
another of the same kind, in a perfect less than the minimum wage under current
state of use; labor laws, in which case, judicial notice
ii. the immediate reimbursement of the may be taken of the fact that in the
amount paid, with monetary updating, deceased's line of work, no documentary
without prejudice to any losses and evidence is available; or
damages; (b) the deceased is employed as a daily wage
iii. a proportionate price reduction. worker earning less than the minimum
(f) Agreement on the term: allowed; but wage under current labor laws.TAN VS. OMC
CARRIERS
such shall not be less than 7 nor more than
180 days
(g) The consumer may make immediate use of 258. Loss of earning capacity may be
the alternatives when the replacement of AWARDED to the heirs of a deceased non-
the imperfect parts may jeopardize the working victim simply because earning
product quality or characteristics, thus capacity, not necessarily actual earning, may
decreasing its value. be lost.ABROGAR V. COSMOS BOTTLING COMPANY
(h) If the consumer opts for the replacement,
and such is not possible, it may be 259. Damages for loss of earning capacity were
replaced by another of a different kind, GRANTED to the heirs of a third-year high
mark or model; provided, that any school student who had been killed when she
difference in price may result thereof was hit by a passenger bus. Compensation of
shall be supplemented or reimbursed by this nature is awarded not for loss of earnings
the party which caused the damage but for loss of capacity to earn money.
Evidence must be presented that the victim, if
not yet employed at the time of death, was
reasonably certain to complete training for a
specific profession.METRO MANILA
TRANSIT CORP. VS. COURT OF APPEALS
260. Damages for loss of earning capacity were

ORDERED TO BE PAID to the heirs of the 15-
year-old high school student killed by a
moving train. The awarded damages for loss of
earning capacity were computed on the basis
of the minimum wage in effect at the time of his
death.PEREÑA VS. ZARATE
261. WHEN ARE ATTORNEY’S FEES 265. WHEN IS A CORPORATION ENTITLED

RECOVERABLE? Attorney's fees and TO MORAL DAMAGES? As a general rule laid
expenses of litigation, other than judicial costs, down in ABS-CBN vs. CA, a corporation
can be recovered: cannot be entitled to moral damages since
(a) When stipulated; physical or mental suffering may only be
(b) When exemplary damages are awarded; experienced by one who has a nervous
(c) When the defendant's act or omission has system, which a corporation being an artificial
compelled the plaintiff to litigate with being has none. However, the said rule admits
third persons or to incur expenses to exceptions as already laid down in Filipinas
protect his interest; Broadcasting vs. AMEC and San Fernando vs.
(d) In criminal cases of malicious Cargill. In the former, a corporation may
prosecution against the plaintiff; recover damages if the case involves
(e) In case of a clearly unfounded civil defamation covered under Article 2219(7) of
action or proceeding against the plaintiff; the NCC; while in the latter, if the actuations of
(f) Where the defendant acted in gross and the defendant debased or besmirched the
evident bad faith in refusing to satisfy the corporation's good reputation or a contractual
plaintiff's plainly valid, just and demandable breach is attended by fraud or bad faith as
claim; provided under Article 2220 of the same Code,
(g) In actions for legal support; moral damages may be awarded to the
(h) In actions for the recovery of wages of corporation.
household helpers, laborers and skilled
workers; 266. WHEN ARE NOMINAL DAMAGES
(i) In actions for indemnity under AWARDED? Nominal damages are awarded
workmen's compensation and where a legal right is technically violated and
employer's liability laws; must be vindicated against an invasion that has
(j) In a separate civil action to recover civil produced no actual present loss of any kind, or
liability arising from a crime; where from the nature of the case, there has
(k) When at least double judicial costs are been some injury arising from the breach of
awarded; contract or legal duty the amount thereof has
(l) In any other case where the court deems it not been or cannot be shown.NCC2221
just and equitable that attorney's fees and
expenses of litigation should be 267. WHAT ARE THE REQUISITES TO
recovered.NCC2208 RECOVER TEMPERATE DAMAGES?
(a) There is actual damage.
262. WHAT ARE THE REQUISITES TO (b) Pecuniary amount of the damage cannot
RECOVER MORAL DAMAGES? be proved.
(a) there is an injury whether physical, mental, (c) Amount must be reasonable.
or psychological clearly sustained by the
claimant; 268. When NO DOCUMENTARY EVIDENCE of
(b) there is a culpable act or omission factually burial or funeral expenses is presented in
established; court, the amount of ₱50,000.00 as temperate
(c) the wrongful act or omission of the damages shall be awarded.PEOPLE VS. JUGUETA
defendant is the proximate cause of the
injury sustained by the claimant; and 269. To recover LIQUIDATED DAMAGES,
(d) the award of damages is predicated on any there is no need to prove amount of damages
of the cases stated in Article 2219 of the suffered; only the fact of the breach needs to
NCC.MANILA ELECTRIC VS. SPOUSES CHUA be proved.
263. Persons exercising SUBSTITUTE 270. LIQUIDATED DAMAGES shall substitute

PARENTAL AUTHORITY are to be the indemnity for damages and the payment of
considered ascendants for the purpose of interests in case of breach, except:
awarding moral damages. Persons (a) When there is a stipulation to the contrary;
exercising substitute parental authority are (b) When the obligor is sued for refusal to pay
intended to stand in place of a child's parents the agreed penalty; or
in order to ensure the well-being and welfare (c) When the obligor is guilty of fraud.NCC1226
of a child.CARAVAN TRAVEL AND TOURS VS. ABEJAR
264. SURVIVING BROTHERS AND SISTERS

are not entitled to recover moral
damages.NCC2219
271. WHAT ARE THE REQUISITES TO 278. Damages that must stand alone:
RECOVER EXEMPLARY DAMAGES? NOMINAL
(a) They may be imposed by way of example
in addition to compensatory damages, and 279. Damages that must be alleged, pleaded,
only after the claimant's right to them has and proved:
been established; (a) ACTUAL
(b) They cannot be recovered as a matter of (b) LIQUIDATED
right, their determination depending upon (c) MORAL
the amount of compensatory damages that
may be awarded to the claimant; 280. Damages that
(c) The act must be accompanied by bad faith need no specific
or done in a wanton, fraudulent, oppressive prayer to be
or malevolent manner.PNB VS. CA recoverable:
(a) NOMINAL
272. Exemplary damages may be awarded on (b) TEMPERATE
account of AGGRAVATING circumstances (c) EXEMPLARY
that are not alleged in the information but
proved during trial.PEOPLE VS. DIUNSAY-JALANDONI 281. HOW DO COURTS DETERMINE THE
APPORTIONMENT OF CIVIL LIABILITY IN
273. Being corrective in nature, exemplary CRIMINAL CASES? Courts are used to be
damages, therefore, can be AWARDED, not given a free hand in determining the
only in the presence of an aggravating apportionment of civil liability. However, the
circumstance, but also where the liability of persons criminally liable for felonies
circumstances of the case show the highly must be commensurate with the degree of
reprehensible or outrageous conduct of the participation of the accused in the crime
offender.PEOPLE VS. DALISAY committed. The proportion of individual liability
must be graduated not only according to the
274. Relative to the civil aspect of the case, an nature of the crime committed and the
aggravating circumstance, WHETHER circumstances attending it, but also the degree
ORDINARY OR QUALIFYING, should entitle and nature of participation of the individual
the offended party to an award of exemplary offender.PEOPLE VS. MONTESCARLOS
damages within the unbridled meaning of
Article 2230 of the NCC.PEOPLE VS. DADULLA
282. GRADUATION OF DAMAGES
275. RECOVERABLE DAMAGES in case of SOURCES OF POSSIBLE BASES OR
death are: OBLIGATIONS ADJUSTMENT GROUNDS
(a) civil indemnity, Aggravating or
Increase or
(b) loss of earning capacity, Crimes mitigating
Reduce
(c) actual or temperate damages, circumstances
(d) moral damages, Quasi- 1) QD only:
Reduce
delicts Contributory
(e) exemplary damages,
Contracts Reduce negligence
(f) attorney’s fees, 2) Contravention
(g) cost of suit, and of terms
(h) legal interest.FORTUNE EXPRESS VS. CA 3) Derivation of
some benefit
276. Damages that cannot co-exist: 4) Acting upon
(a) NOMINAL with other damages advice of
(b) ACTUAL and LIQUIDATED, unless Quasi- counsel
Reduce
stipulated contracts 5) Loss would
have resulted
in any event
277. Damages that must co-exist:
6) Doing one’s
EXEMPLARY with moral, temperate, best to lessen
liquidated, or actual the loss or
injury
COMMERCIAL LAW
CORPORATIONS corporation, with rights and duties
maintainable at law
283. WHAT IS A CORPORATION? Under (e) One person corporation (OPC): one with a
Section 2 of the Revised Corporation Code single stockholder formed in accordance
(RCC), corporation is an artificial being created with the RCC
by operation of law, having the right of (f) Close corporation: one whose articles of
succession and the powers, attributes and incorporation provides that:
properties expressly authorized by law or i. all the corporation's issued stock
incident to its existence. of all classes, exclusive of treasury
shares, shall be held of record by
284. WHAT ARE THE KINDS OF not more than a specified number
CORPORATIONS? of persons, not exceeding twenty
(a) As to existence of stocks: (20);
i. Stock: which has capital stock ii. all the issued stock of all classes
divided into shares and is shall be subject to one (1) or more
authorized to distribute to the specified restrictions on transfer
holders of such shares, dividends permitted by the RCC; and,
or allotments of the surplus profits iii. the corporation shall not list in any
on the basis of the shares held stock exchange or make any public
ii. Non-stock: all other corporations offering of its stocks of any class
aside from stock corporations (g) Religious corporations
(b) As to laws of incorporation i. Corporation sole: formed for the
i. Domestic: corporation formed, purpose of administering and
organized or existing under managing, as trustee, the affairs,
Philippine laws property and temporalities of any
ii. Foreign: formed, organized and religious denomination, sect or
existing under any law other than church, by the chief archbishop,
those of the Philippines and whose bishop, priest, minister, rabbi, or
laws allow Filipino citizens and other presiding elder of such
corporations to do business in its religious denomination, sect or
own country or state church
(c) As to governing law: ii. Religious societies: formed by any
i. Private: primarily governed by the religious society, religious order,
RCC diocese, or synod, or district
ii. Public: primarily governed by organization of any religious
special laws and the Local denomination, sect or church
Government Code incorporated for the purpose of
(d) As to legal status: administration of its temporalities
i. de jure: organized in accordance or for the management of its affairs,
with the requirements of law properties, and estate by filing the
ii. de facto: defectively organized as management of its affairs,
not to be a de jure corporation properties.
iii. Corporation by estoppel: where a
group of persons holds itself out as 285. CAN A CORPORATION PRACTICE A
a corporation and enters into a PROFESSION? Corporate practice of any
contract with third persons on the profession is not sanctioned based on the
strength of such appearance, and policy that the ethics of any profession is
cannot be permitted to deny its based upon the individual responsibility,
existence in an action under the personal accountability, and independence,
said contract which are all lost where one acts as a mere
iv. Corporation by prescription: not agent, or alter ego, of unlicensed persons or
formally organized as such but has corporations. However, under RA 9266,
been duly recognized by architectural professional corporations are
immemorial usage as a allowed to be registered.
286. A CORPORATION SOLE has no 290. CAN THE QUO WARRANTO PETITION
nationality. AGAINST A DE FACTO CORPORATION BE
FILED BY A PRIVATE INDIVIDUAL OR
287. RULES RELATED TO ONE PERSON ENTITY? No. Under the RCC, the petition can
CORPORATIONS (OPC): only be filed by the State through the Solicitor
(a) Banks and quasi-banks, pre-need, trust, General.RCC19
insurance, public and publicly-listed
companies, and non-chartered GOCCs 291. The RCC imposes NO MINIMUM
may not incorporate as OPCs.RCC116 AUTHORIZED CAPITAL STOCK except
(b) A natural person who is licensed to when a special law governing a particular
exercise a profession may not organize as business or industry provides for such.RCC12
an OPC for the purpose of exercising such
profession, except as otherwise provided 292. IS IT SUFFICIENT THAT A
under special laws.RCC116 CORPORATION’S CAPITAL STOCK IS
(c) The single stockholder shall be the sole DIVIDED INTO SHARES IN ORDER TO BE
director and president.RCC121 CLASSIFIED AS A STOCK CORPORATION?
(d) An OPC has a separate juridical No. The mere fact that a corporation has
personality separate from the single capital stock divided into shares is not
stockholder.rRCC18; RCC130 determinative of being a stock corporation. In
(e) A sole shareholder claiming limited liability order for a stock corporation to exist, two
has the burden of affirmatively showing requisites must be complied with, to wit: (1) a
that the corporation was adequately capital stock divided into shares and (2) an
financed.RCC130 authority to distribute to the holders of such
(f) Where the single stockholder cannot prove shares, dividends or allotments of the surplus
that the property of the OPC is profits on the basis of the shares held.
independent of the stockholder’s personal
property, the stockholder shall be jointly 293. TRUST FUND DOCTRINE: The
and severally liable for the debts and other requirement of unrestricted retained earnings
liabilities of the OPC. RCC130 to cover the shares is based on the trust fund
(g) The principles of piercing the corporate doctrine which means that the capital stock,
veil applies with equal force to OPCs as property and other assets of a corporation are
with other corporations. RCC130 regarded as equity in trust for the payment of
corporate creditors. The reason is that
288. WHAT IS THE DOCTRINE OF SEPARATE creditors of a corporation are preferred over
PERSONALITY? The general rule is that a the stockholders in the distribution of
corporation is invested by law with a corporate assets. There can be no distribution
personality separate and distinct from that of of assets among the stockholders without first
the persons composing it, or from any other paying corporate creditors. Hence, any
legal entity that it may be related to. The disposition of corporate funds to the prejudice
obligations of a corporation, acting through its of creditors is null and void.TURNER VS. LORENZO
directors, officers, and employees, are its own SHIPPING CORPORATION
sole liabilities. Therefore, the corporation’s

directors, officers, or employees are generally 294. ADVANCES FOR FUTURE
not personally liable for the obligations of the SUBSCRIPTION are not covered within the
corporation.BANK OF COMMERCE VS. NITE ambits of the trust fund doctrine. It is not the
payment of shares that constitutes one a
289. HOW CAN THE EXISTENCE OF A DE stockholder, but rather the act of subscribing
FACTO to shares of stock which may only be done
CORPORATION when the certificate of increase is issued by
BE ASSAILED? SEC. Prior to said issuance, those who paid in
The existence of advance are not yet stockholders of the
a de facto corporation and may still withdraw the money
corporation can they advanced.
only be assailed
by the State in a 295. Corporations are entitled to the following
quo warranto constitutional rights:
proceeding.RCC19 (a) DUE PROCESS;
(b) EQUAL PROTECTION; and
(c) Protection against UNREASONABLE
SEARCH AND SEIZURE.
296. WHAT IS THE DOCTRINE OF PIERCING (f) Number of directors/trustees

THE VEIL OF CORPORATE FICTION? When (g) Name, citizenship and residential
the veil of corporate fiction is used as a shield addresses of directors/trustees
to perpetuate fraud, to defeat public (h) Par value of shares, number of authorized
convenience, justify a wrong or defend the shares
crime, the corporation fiction shall be (i) For stock corporations:
disregarded and the individuals composing it a. Authorized Capital Stock (the
will be treated identically. amount fixed in the AOI)
b. Number of shares
297. WHO DETERMINES IF THE CORPORATE c. Par value of each share
VEIL SHOULD BE PIERCED? The courts. d. Statement about existence of no-
par value shares
298. The test in determining the applicability of e. Name, citizenship and residential
the doctrine of piercing the veil of corporate addresses of original subscribers
fiction are as follows: f. Subscribed Capital (the portion of
(a) CONTROL, not mere majority or complete the authorized capital stock that is
stock control, but COMPLETE covered by subscription
DOMINATION, not only of finances but of agreements whether fully paid or
policy and business practice in respect to not)
the transaction attacked; g. Paid-up Capital (the portion of the
(b) Such control must have been USED by the authorized capital stock which has
defendant to commit fraud or wrong, to been subscribed and fully paid)
perpetuate the violation of a statutory or h. Outstanding capital stock (total
other positive legal duty, or dishonest and shares of stock issued whether or
unjust acts; and not fully paid except treasury
(c) Such control and breach of duty is the shares)
PROXIMATE CAUSE of the injury or (j) For non-stock corporations:
unjust loss complained of. a. Capital
b. Name, citizenship and residential
299. The DOCTRINE OF PIERCING THE addresses of contributors
CORPORATE VEIL is an equitable doctrine c. Amount contributed
developed to address situations where the (k) Name of the treasurer elected
separate corporate personality of a (l) Such other matters consistent with law
corporation is abused or used for wrongful and which the incorporators may deem
purposes. Hence: necessary and convenientRCC13; RCC14
(a) It is a remedy of last resort, and is not
available when other remedies are still
302. The RCC requires no portion of the
available (e.g. annulment of contract based
authorized capital stock (ACS) to be
on vitiation of consent);
subscribed and paid-up at the time of
(b) The wrongdoing must be proven clearly
incorporation. But in case of INCREASE OF
and convincingly;
ACS, 25% of it must be subscribed and 25%
(c) The burden is on the party who seeks its
of the subscribed must be paid up.RCC14; RCC37
application; and
(d) It must be done with caution.
303. BYLAWS refers to the relatively
permanent and continuing rules of action
300. WHAT ARE THE REQUIREMENTS TO BE
adopted by the corporation for its own
AN INCORPORATOR?
government and that of the individuals
(a) Any person (natural or juridical);
composing it; it must be consistent with the
(b) Not more than 15;
AOI, the RCC and other pertinent laws and
(c) Must be of legal age (18 years of age);
regulations.
(d) Each must own or subscribe to at least one
share.RCC10
304. WHAT IS REQUIRED FOR THE
ADOPTION OF THE BYLAWS? For the
301. CONTENTS OF THE ARTICLES OF
adoption of bylaws by the corporation, the
INCORPORATION (AOI):
affirmative vote of the stockholders
(a) Name
representing at least a majority of the
(b) Purpose
outstanding capital stock, or of at least a
(c) Place of principal office
majority of the members in case of nonstock
(d) Term
corporations, shall be necessary. The bylaws
(e) Name, citizenship and residential
shall be signed by the stockholders or
addresses of the incorporators
members voting for them.RCC45
305. IF THE BYLAWS IS FILED PRIOR TO 308. WHEN DOES THE BYLAWS BECOME
INCORPORATION, WHAT IS REQUIRED EFFECTIVE? It shall be effective only upon the
FOR ITS ADOPTION? Such bylaws shall be issuance by the SEC of a certification that the
approved and signed by all the incorporators bylaws are in accordance with the RCC.RCC45
and submitted to the Securities and Exchange
Commission (SEC), together with the articles 309. The DELEGATED POWER to amend or
of incorporation.RCC45 repeal the bylaws
may be revoked
306. WHAT MAY BE THE CONTENTS OF THE by the
BYLAWS? A private corporation may provide stockholders
the following in its bylaws: owning or
(a) The time, place and manner of calling and representing a
conducting regular or special meetings of majority of the
the directors or trustees; outstanding
(b) The time and manner of calling and capital stock or
conducting regular or special meetings majority of the
members of a nonstock corporation.RCC47
and mode of notifying the stockholders or
members thereof; 310. WHEN DOES THE AMENDMENTS TO
(c) The required quorum in meetings of THE BYLAWS TAKE EFFECT? It shall be
stockholders or members and the manner effective only upon the issuance by the SEC of
of voting therein; a certification that the bylaws are in
(d) The modes by which a stockholder, accordance with the RCC and other relevant
member, director, or trustee may attend laws.RCC47
meetings and cast their votes;
(e) The form for proxies of stockholders and 311. Holders of DELINQUENT STOCKS are
members and the manner of voting them; entitled to cash and property dividends, but
(f) The directors’ or trustees’ qualifications, it would be applied to the unpaid balance on
duties and responsibilities, the guidelines the subscription plus cost and expenses. They
for setting the compensation of directors or are likewise entitled to stock dividends, but
its issuance will be withheld from the
trustees and officers, and the maximum
delinquent holder until the latter pays his
number of other board representations
unpaid subscription.RCC42
that an independent director or trustee
may have; 312. WATERED STOCKS refer to stocks issued
(g) The time for holding the annual election of not in exchange for its equivalent either in
directors or trustees and the mode or cash, property or services; thus, the issuance
manner of giving notice thereof; of such stocks are prohibited.
(h) The manner of election or appointment
and the term of office of all officers other 313. WHAT ARE THE CONSEQUENCES ON
than directors or trustees; THE PART OF THE CORPORATE OFFICERS
(i) The penalties for violation of the bylaws; OR BOARD OF DIRECTORS (BOD) IF THEY
(j) In the case of stock corporations, the CONSENTED TO THE ISSUANCE OF
manner of issuing stock certificates; WATERED STOCKS? They shall be liable to
the corporation or its creditors, solidarily with
(k) Such other matters as may be necessary;
the stockholder concerned for the difference
and
in value.RCC64
(l) An arbitration agreement.RCC46
314. Other INSTANCES that results to the
307. HOW MAY THE BYLAWS BE AMENDED issuance of watered stocks:
OR REPEALED? (a) Issuance of shares without
(a) By a majority vote of the board of consideration;
directors/trustees, and owners of at least a (b) The fair value of the property received is
majority of the outstanding capital stock or less than the par value of the issued
members of a nonstock corporation; or shares; or
(b) By majority vote of the board of (c) Issued as stock dividends when there are
directors/trustees only if such power was no sufficient retained earnings or
delegated by the owners of 2/3 of the surplus to justify it.
outstanding capital stock or 2/3 of the
members in a nonstock corporation.RCC47
315. WHEN MAY A CORPORATION ACQUIRE 320. DOCTRINE OF APPARENT AUTHORITY:

ITS OWN SHARES? The basic requirements If a corporation knowingly permits one of its
for a corporation to acquire its own shares are officers, or any other agent, to act within the
as follows: scope of apparent authority, it holds him out to
(a) The corporation has unrestricted retained the public as possessing the power to do those
earnings in its books to cover the shares to acts; and thus, the corporation will, as
be purchased/acquired. against anyone who has in good faith dealt
(b) For a legitimate corporation purpose, with it through such agent, be estopped
including the following cases: from denying the agent’s authority.
i. To eliminate fractional shares
arising out of stock dividends; 321. QUALIFICATIONS OF DIRECTORS AND
ii. To collect or compromise an TRUSTEES:
indebtedness to the corporation (a) Stock corporation: must own at least one
arising out of unpaid subscription in share of stock of the corporation, must be
a delinquency sale and to purchase a stockholder in his own right, must own
delinquent shares sold during the the LEGAL TITLE and not merely beneficial
sale; and title;
iii. To pay dissenting or withdrawing (b) Non-stock corporation: must be a
stockholders entitled to payment of member.
their shares.RCC40 (c) Of legal age
(d) Possesses all qualifications and none of
316. ON WHAT MATTERS CAN HOLDERS OF the disqualifications stated in the by-laws
NON-VOTING SHARES ARE ENTITLED TO of the corporationRCC22; RCC23
VOTE?
(a) Amendment of the AOI; 322. DISQUALIFICATIONS OF DIRECTORS,
(b) Adoption and amendment of bylaws; TRUSTEES, OR OFFICERS: If within 5 years
(c) Sale, lease, exchange, mortgage, pledge, prior to the election or appointment, he/she
or other disposition of all or substantially all was:
of the corporate property; (a) Convicted by final judgment;
(d) Incurring, creating, or increasing bonded i. Of an offense punishable by
indebtedness; imprisonment for a period
(e) Increase or decrease of authorized capital exceeding 6 years;
stock; ii. For violating the RCC; and
(f) Merger or consolidation; iii. For violating the Securities
(g) Investment of corporate funds in another Regulation Code (SRC);
corporation or business; and (b) Found administratively liable for any
(h) Corporate dissolution.RCC6 offense involving fraudulent acts; and
(c) By a foreign court or equivalent foreign
317. The BOARD OF DIRECTORS/TRUSTEES regulatory authority for act, violations, or
is the governing body of a stock/non-stock misconduct similar to those enumerated in
corporation. They exercise the powers of a (a) and (b).RCC26
corporation.RCC22
323. ELECTION of directors in a stock
318. WHAT IS THE BUSINESS JUDGMENT corporation should be by the stockholders
RULE? Questions of policy or management constituting a quorum. All shareholders
are left solely to the honest decision of officers holding voting shares have the right to
and directors of a corporation and the courts vote.RCC23
are without authority to substitute their
judgment for the judgment of the BOD. The 324. CONCURRENT POSITIONS
BOD is the business manager of the ALLOWEDRCC24:
corporation and so long as it acts in good faith, "
# President and Secretary
its orders are not reviewable by the court or "
# President and Treasurer (allowed in
the SEC. OPCsRCC122)
$
& Secretary and Treasurer
%
319. WHAT ARE THE CONSEQUENCES OF
ULTRA VIRES ACTS? 325. A disqualified director/trustee may be
(a) Executed contracts: cannot be set aside REMOVED:
(b) Executory contracts: cannot be enforced (a) By a vote of stockholders or members; or
(c) Partly executed and partly executory: (b) By the SEC, motu proprio or upon verified
apply principle of unjust enrichment complaint.RCC27
326. INDEPENDENT DIRECTOR is a person 328. WHEN DOES A PERSON BECOME A

who, apart from shareholdings and fees SHAREHOLDER? A person becomes a
received from the corporation, is independent shareholder the moment he/she:
of management and free from any business or (a) Enters into a subscription contract with an
other relationship which could, or could existing corporation; or
reasonably be perceived to materially interfere (b) Acquires shares from existing
with the exercise of independent judgment in shareholders by sale or any other contract.
carrying out the responsibilities as a director;
elected by the shareholders present or entitled 329. WHAT ARE THE RIGHTS OF
to vote in absentia during the election of STOCKHOLDERS?
directors; must constitute 20% of the board of (a) Voting rights
the following corporations vested with public (b) Right to dividends
interest: (c) Appraisal right
(a) Covered by the SRC; (d) Right to issuance of stock certificate for
(b) Banks and quasi-banks, NSSLAs (non- fully paid shares
stock savings and loans associations), (e) Proportionate participation in the
pawnshops, corporations engaged in distribution of assets in liquidation
money service business, pre-need, trust (f) Right to transfer of stocks in corporate
and insurance companies, and other books
financial intermediaries; and (g) Pre-emptive right
(c) Other corporations engaged in business (h) Right to inspect books and records and to
vested with public interest as may be be furnished with the most recent financial
determined by the SEC.RCC22 reports
(i) Right to file individual, representative and
327. DISTINGUISH TERM FROM TENURE. derivative suits
Term is distinguished from tenure in that an
officer's "tenure" represents the term during 330. WHAT ARE THE OBLIGATIONS OF A
which the incumbent actually holds office. The STOCKHOLDER?
tenure may be shorter (or, in case of holdover, (a) Liability for any unpaid subscription
longer) than the term for reasons within or (b) Liability to the corporation for interest on
beyond the power of the incumbent. When unpaid subscription if so required by the
Section 22 of the RCC declares that "the board by-laws
of directors x x x shall hold office for one (1) (c) Liability to the creditors of the corporation
year until their successors are elected and for unpaid subscription
qualified", it is construed to mean that the term (d) Liability for watered stock
of the members of the board of directors shall (e) Liability for dividends unlawfully paid
be only for one year; their term expires one
year after election to the office. The holdover 331. HOW MAY A STOCKHOLDER OR
period—that time from the lapse of one year MEMBER EXERCISE HIS/HER RIGHT TO
from a member's election to the Board and VOTE? The right to vote of stockholders or
until his/her successor's election and members may be exercised:
qualification—is (a) in person,
not part of the (b) through a proxy, or
director's original (c) when so authorized in the by-laws, through
term of office, nor remote communication or in absentia.RCC23
is it a new term;
the holdover 332. A stockholder or member who participates
period, however, THROUGH REMOTE COMMUNICATION OR
constitutes part
IN ABSENTIA, shall be deemed present for
of his tenure.
purposes of quorum. RCC23
Corollary, when
an incumbent member of the board of
directors continues to serve in a holdover 333. MEETINGS OF DIRECTORS OR
capacity, it implies that the office has a fixed TRUSTEES of corporations may be held
term, which has expired, and the incumbent is anywhere in the world, unless the bylaws
holding the succeeding term. provide otherwise.RCC52
334. A PROXY form is valid only for the (b) Shares issued in good faith in exchange for
stockholders’ meeting for which it is property needed for corporate
intended, unless otherwise stated; no proxy purposes;
shall be valid for a period longer than 5 years (c) Shares issued in payment for previously
at any one time.RCC57 contracted debt; and
(d) In case the right is denied in the Articles
335. Under a VOTING TRUST AGREEMENT, of Incorporation.RCC38
one or more stockholders of a corporation of a
stock corporation may create a voting trust for 340. MAY THE OTHER SHAREHOLDERS
the purpose of conferring upon a trustee or PURCHASE THE SHARES OFFERED TO THE
trustees the right to vote and other rights SHAREHOLDER BUT REFUSED TO
pertaining to the shares for a period not EXERCISE HIS/HER PRE-EMPTIVE RIGHT? If
exceeding five years at any one time. The one shareholder does not want to exercise
trustee can also be voted as a director.RCC58 his/her pre-emptive right, the other
shareholders are not entitled to purchase the
336. WHAT ARE LIMITATIONS ON THE corresponding shares of the shareholder who
RIGHT TO VOTE? declined. But if nobody purchased the same
(a) Where the AOI provide for classification of and later on the board re-issued the shares,
shares pursuant to Section 6 of RCC, non- the pre-emptive right applies.
voting shares are not entitled to vote
except as provided in the last paragraph of 341. WHEN CAN A DISSENTING
said section; STOCKHOLDER EXERCISE HIS/HER RIGHT
(b) Preferred and redeemable shares may be OF APPRAISAL?
deprived of the right to vote, unless (a) Extension or shortening of corporate term;
otherwise provided in the RCC; (b) Restriction of rights or privileges or shares
(c) Fractional shares cannot be voted unless through the amendment of the articles of
they constitute at least one full share; incorporation;
(d) Treasury shares have no voting rights as (c) Sale of all or substantially all of corporate
long as they remain in the treasury; assets;
(e) Holders of stock declared delinquent by (d) Equity investment in non-primary purpose
the BOD for unpaid subscription are NOT business enterprise; and
entitled to vote or a representation at any (e) Merger or consolidation.RCC41; RCC80
stockholders’ meeting;
(f) A transferee of stock cannot vote if his 342. WHEN DOES A FOREIGN
transfer is NOT registered in the stock and CORPORATION (FC) HAVE A RIGHT TO
transfer book of the corporation; and SUE IN PHILIPPINE COURTS?
(g) A stockholder is still entitled to vote even if (a) If a FC DOES BUSINESS in the Philippines
the shares are mortgaged or pledged WITHOUT a license, it CANNOT sue
unless he authorizes the creditor in writing before the Philippine courts;
to vote. (b) If a FC is NOT DOING BUSINESS in the
Philippines, it NEEDS NO LICENSE to sue
337. PRE-EMPTIVE RIGHT is the shareholder’s before Philippine courts on an isolated
right to subscribe to all issues or disposition of
transaction or on a cause of action entirely
shares of any class in proportion to his present
holdings, the purpose being to enable the independent of any business transaction;
shareholder to retain his/her proportionate (c) If a FC DOES BUSINESS in the Philippines
control in the corporation and to retain his/her WITHOUT a license, a Philippine citizen or
equity in the surplus. entity which has contracted with said FC
may be estopped from challenging the
338. Stock transactions COVERED by pre- FC’s personality in a suit brought before
emptive right: the Philippine courts; and
(a) increase in the authorized capital stock; (d) If a FC DOES BUSINESS in the Philippines
(b) opening for subscription the unissued with the required license, it CAN sue
portion of existing capital stock; and before the Philippine courts on any
(c) disposition of treasury shares. transaction.
339. Pre-emptive right is NOT AVAILABLE in
the following:
(a) Shares to be issued to comply with the
laws requiring stock offering or minimum
stock ownership by the public;
343. POWERS OF THE CORPORATION AND VOTE

VOTING REQUIREMENTS: REQUIRED VOTE REQUIRED
POWERS FROM THE FROM THE
VOTE
EXERCISEDRCC BOARD OF STOCKHOLDERS
REQUIRED VOTE REQUIRED
TRUSTEES OR OR MEMBERS
POWERS FROM THE FROM THE
DIRECTORS
EXERCISEDRCC BOARD OF STOCKHOLDERS
TRUSTEES OR OR MEMBERS Filling a
DIRECTORS vacancy in the
Unanimity of the
office of director
Extend or remaining NONE
and trustee in
shorten directors/trustees
Majority 2/3 case of
corporate
emergency28
term36
Grant of
Amendment of
compensation
articles of NONE Majority
to directors or
incorporation of Majority 2/3
trustees29
ordinary
corporations15 Ratification of a
director’s act of NONE 2/3
2/3 (none
disloyalty33
required in case
Sale or other
of nonstock
disposition of all INTRA-CORPORATE DISPUTE
Majority corporations
or substantially
where members
all of its assets39
have no voting
344. WHAT IS AN INTRA-CORPORATE
rights)
Investment of CONTROVERSY? An intra-corporate
corporate funds controversy is
in another one which arises
corporation or Majority 2/3 between a
business or for
any other
stockholder and
purpose41 the corporation
Merger or or among the
Majority 2/3
consolidation76 stockholders
Increase or involving internal
decrease Majority 2/3
capital stock37
affairs of the
Declare stock corporation.
Majority 2/3
dividends42
Declare cash or 345. WHAT ARE THE TWO TESTS IN
property Majority NONE DETERMINING WHETHER OR NOT A CASE
dividends42
Incur, create or
INVOLVES AN INTRA-CORPORATE
increase DISPUTE? The two tests are:
Majority 2/3
bonded (a) the relationship test, and
indebtedness37 (b) the nature of the controversy test.SAN JOSE VS.
Voluntary OZAMIZ
dissolution
where no Majority Majority
creditors are 346. Under the RELATIONSHIP TEST, there is
affected134 an intra-corporate controversy when the
Voluntary conflict is:
dissolution (a) between the corporation, partnership, or
Majority 2/3
where creditors
are affected119 association and the public;
2/3, in case of (b) between the corporation, partnership, or
good faith association and the State insofar as its
issuance of franchise, permit, or license to operate is
shares in
concerned;
exchange for
Deny pre- (c) between the corporation, partnership, or
Majority property needed
emptive right38
for corporate association and its stockholders, partners,
purposes or in members, or officers; and
payment of a (d) among the stockholders, partners, or
previously
contracted debt associates themselves. SAN JOSE VS. OZAMIZ
Acquire own
Majority NONE
shares40 347. Under the NATURE OF CONTROVERSY
Election of
Majority NONE TEST, an intra-corporate controversy arises
officers24 when the controversy is rooted in the
Removal of
directors or NONE 2/3
enforcement of the parties' correlative
trustees27 rights and obligations under the RCC and the
internal and intra-corporate regulatory rules of
the corporation. SAN JOSE VS. OZAMIZ
348. INDIVIDUAL ACTIONS are those brought intra-corporate controversies, as provided

by the shareholder in his/her own name under Section 5 of Presidential Decree No.
against the corporation when a wrong is 902-A. The SRC, which took effect on August
directly inflicted against him/her. 8, 2000, transferred said jurisdiction to courts
of general jurisdiction or regional trial courts
349. REPRESENTATIVE ACTIONS are those designated as Special Commercial Court by
brought by the stockholder on behalf of the Supreme Court.
himself/herself and all other stockholders
similarly situated when a wrong is committed 356. Intra-corporate disputes are commenced
against a group of stockholders. and tried in the REGIONAL TRIAL COURT
which has jurisdiction over the principal
350. DERIVATIVE ACTIONS are those brought office of the corporation, partnership, or
by one or more stockholders/members in the association concerned. Where the principal
name and on behalf of the corporation to office of the corporation, partnership or
redress wrongs committed against it or protect association is registered in the Securities and
or vindicate corporate rights whenever the Exchange Commission as Metro Manila, the
officials of the corporation refuse to sue or the action must be filed in the city or municipality
ones to be sued or has control of the where the head office is located.
corporation.
357. WHAT ARE THE CIVIL CASES COVERED
351. REQUISITES OF A DERIVATIVE ACTION: UNDER THE INTERIM RULES OF
(a) The plaintiff was a stockholder or PROCEDURE GOVERNING INTRA-
member at the time of the acts or CORPORATE CONTROVERSIES? These are
transactions subject of the action occurred civil cases involving:
and at the time the action was filed; (a) Devices or schemes employed by, or any
(b) He/she exerted all reasonable efforts, act of, the board of directors, business
and alleges the same with particularity in associates, officers or partners, amounting
the complaint, to exhaust all remedies to fraud or misrepresentation which may
available under the AOI, by-laws, laws or be detrimental to the interest of the public
rules; and/or of the stockholders, partners, or
(c) No appraisal rights are available for the members of any corporation, partnership,
act or acts complained of; and or association;
(d) The suit is not a nuisance or harassment (b) Controversies arising out of intra-
suit. corporate, partnership, or association
relations, between and among
352. WHEN SHALL INTRA-CORPORATE stockholders, members, or associates; and
DISPUTES BE REFERRED TO between, any or all of them and the
ARBITRATION? When an arbitration corporation, partnership, or association of
agreement is provided in the articles of which they are stockholders, members, or
incorporation or bylaws of an unlisted associates, respectively;
corporation, disputes between the (c) Controversies in the election or
corporation, its stockholders or members, appointment of directors, trustees, officers,
which arise from the implementation of the or managers of corporations, partnerships,
articles of incorporation or bylaws, or from or associations;
intra-corporate relations, shall be referred to (d) Derivative suits; and
arbitration. RCC181 (e) Inspection of corporate books.AM01-2-04-SC
353. WHEN IS DISPUTE NONARBITRABLE? A 358. The mere fact that a corporation's shares
dispute shall be nonarbitrable when it involves of stocks are owned by a sequestered
criminal offenses and interests of third corporation does not, by itself, automatically
parties.RCC181 categorize the matter as one involving
sequestered assets, or matters incidental to or
354. The ARBITRAL TRIBUNAL shall have the related to transactions involving sequestered
power to rule on its own jurisdiction and on corporations and/ or their assets. Hence, a
questions relating to the validity of the stockholder’s complaint for INSPECTION OF
arbitration agreement. RCC181 BOOKS OF A CORPORATION
SEQUESTERED by the PCGG is within the
355. WHICH COURT HAS JURISDICTION jurisdiction of the RTC, not the
OVER INTRA-CORPORATE DISPUTES? The Sandiganbayan. SAN JOSE VS. OZAMIZ
SEC was given original and exclusive

jurisdiction to hear and decide cases involving
359. WHEN AN INTRA-CORPORATE expressed, explained, illustrated or

DISPUTE IS FILED WITH THE RTC AND SAID embodied in a work
COURT DETERMINES THAT AN (b) News of the day and other miscellaneous
ARBITRATION AGREEMENT IS WRITTEN IN facts having the character of mere items of
THE CORPORATION’S ARTICLES OF press information
INCORPORATION, BYLAWS, OR IN A (c) Any official text of a legislative,
SEPARATION AGREEMENT, WHAT MUST administrative or legal nature, as well as
THE COURT DO? The court shall dismiss the any official translation thereof
case before the termination of the pretrial (d) Any work of the government of the
conference. RCC181 Philippines IPC175; IPC176
INTELLECTUAL PROPERTY 364. WHAT ARE THE ECONOMIC RIGHTS OF

A COPYRIGHT OWNER? A copyright owner
360. COPYRIGHT refers to the right over has the exclusive right to carry out, authorize
literary and artistic works, which are original or prevent:
intellectual creations in the literary and (a) Reproduction of the work or substantial
artistic domain protected from the moment of portion of the work
creation. (b) Dramatization, translation, adaptation,
abridgment, arrangement or other
361. Works are protected by the sole fact of transformation of the work
their creation, irrespective of their mode or (c) First public distribution of the original copy
form of expression, as well as of their content, of the work
quality and purpose. Under Section 172 of the (d) Rental of the original or a copy of an
Intellectual Property Code (IPC), audiovisual or cinematographic work
PROTECTION starts from the moment of (e) Public display of the original or a copy of
their creation.IPC172 the work
(f) Public performance of the work
362. WHAT ARE RULES ON WORKS OF THE (g) Other communication to the public of the
GOVERNMENT AS FAR AS INTELLECTUAL work IPC177
PROPERTY IS CONCERNED?
(a) No copyright shall subsist in any work of 365. WHAT ARE THE MORAL RIGHTS OF AN
the Government of the Philippines. AUTHOR OVER A PROTECTED WORK?
(b) However, prior approval of the government (a) Require that the authorship of the works be
agency or office wherein the work is attributed to him, in a prominent way on the
created shall be necessary for exploitation copies, and with the public use of the work;
of such work for profit. (b) Make any alterations of his work prior to or
(c) Such agency or office may, among other to withhold it from publication;
things, impose as a condition the payment (c) Object to any distortion, mutilation or other
of royalties. modification of, or other derogatory action
(d) No prior in relation to, his work which would be
approval or prejudicial to his honor or reputation; and
conditions (d) Restrain the use of his name with respect
shall be to any work not if his own creation or in a
required for distorted version of his work IPC193
the use for
any purpose 366. The MORAL RIGHT of an author to require
of statutes, that the authorship of the works be attributed
rules and to him, in a prominent way on the copies, and
regulations, with the public use of the work lasts during the
and speeches, lectures, sermons, lifetime of the author and in perpetuity after
addresses, and dissertations, pronounced, his death. Such right is not assignable or
read or rendered in courts of justice, subject to license.IPC198
before administrative agencies, in
deliberative assemblies and in meetings of 367. The OTHER MORAL RIGHTS of an author
public character. IPC176 shall be coterminous with the economic
rights. IPC198
363. WHAT ARE THE WORKS THAT CANNOT
BE PROTECTED BY COPYRIGHT?
(a) Any idea, procedure, system, method or
operation, concept, principle, discovery or
mere data as such, even if they are
368. An author may WAIVE his moral rights by scholarship, research, and similar purposes is
a written instrument except when the waiver not an infringement of copyright. IPC185
permits another that would substantially tend
to injure the literary or artistic reputation of 373. DECOMPILATION, which is the
another author or use the name of the author reproduction of the code and translation of the
with respect to a work he did not create. IPC195 forms of a computer program to achieve the
interoperability of an independently created
369. RULES ON OWNERSHIP OF computer program with other programs may
COPYRIGHT: also constitute fair use, to the extent that
(a) One creator: creator, his heirs or assigns such decompilation is done for the purpose of
owns copyright obtaining the information necessary to achieve
(b) Joint creation: co-authors shall be the such interoperability. IPC185
original owners of the copyright and in the
absence of agreement their rights shall be 374. WHAT ARE THE FACTORS TO BE
governed by the rules on co-ownership. CONSIDERED IN DETERMINING WHETHER
(c) Commissioned work: the person THE USE MADE OF A WORK IN ANY
commissioning owns the work; ownership PARTICULAR CASE IS FAIR USE?
of copyright remains with the creator, (a) Purpose and the character of the use;
unless there is a stipulation to the contrary (b) Nature of the copyrighted work;
(d) Audiovisual work: producer for purposes (c) Amount and substantiality of the portions
of exhibition; for all other purposes, the used; and
producer, the author of the scenario, the (d) Effect of the use upon the potential market
composer, the film director, the of the copyrighted work IPC185
photographic director and the author of the
work are the owners 375. TERM OF PROTECTION OF
(e) Pseudonymous and anonymous works: COPYRIGHTED WORKS:
unless the author is indisputably known, TERM OF
the publisher shall be presumed to be the WORKS
PROTECTION
representative of the author During the life of the
Original, derivative, and
(f) Employee’s work during course of author and for 50 years
posthumous works
employment: employer, if the result of after his death
regular functions or duties but the During the life of the last
employee owns it if it is not part of his Works of joint authorship surviving author and for
duties 50 years after his death
50 years from the date
Anonymous or on which the work was
370. All copies deposited and instruments in pseudonymous works first lawfully published
writing filed with the National Library and
the Supreme Court Library in accordance During the life of the
with the Intellectual Property Code shall If author’s identity is author (or last surviving
become the PROPERTY OF THE revealed or is no longer author) and for 50 years
GOVERNMENT. IPC227 in doubt after his death
371. RULES ON PRESUMPTION OF If not published 50 years from the

AUTHORSHIPIPC219: making of the work
(a) The natural person whose name is How to compute: The term of protection
subsequent to the death of the author shall run from
indicated on a work in the usual manner
the date of his death or of publication, but such terms
as the author shall, in the absence of proof shall always be deemed to begin on the first day of
to the contrary, be presumed to be the January of the year following the event which gave
author of the work. (applicable where the rise to them.
pseudonym leaves no doubt as to the Example: If the author of a literary work dies on July
identity of the author) 1, 2017, the 50 year-term shall begin to run on
(b) The person or body corporate whose January 1, 2018. Hence, the protection expires on
name appears on an audio-visual work December 31, 2067, and not June 30, 2067.
in the usual manner shall, in the absence Photographic and audio- 50 years from
of proof to the contrary, be presumed to be visual works publication
the maker of said work.
If not published 50 years from making
20 years from the date
372. WHAT IS THE DOCTRINE OF FAIR USE? Broadcasts the broadcast took
Fair use of a copyrighted work for criticism, place
comment, news reporting, teaching including
limited number of copies for classroom use,
376. WHAT IS COPYRIGHT INFRINGEMENT? honor the application as a valid, binding, and
It is when there is piracy or substantial effective insurance contract.
reproduction of copyrighted works, or when
one: 381. IS DELIVERY OF POLICY REQUIRED
(a) Directly commits an infringement; FOR THE PERFECTION OF A CONTRACT
(b) Benefits from the infringing activity; or OF INSURANCE? No, because an insurance
(c) With knowledge of infringing activity, contract is a consensual contract which merely
induces, causes, or materially contributes requires the meeting of the minds of the
to the infringing conduct of another.IPC216 insurer and the person procuring it in order for
the contract to be perfected.
377. WHAT ARE THE REMEDIES FOR
COPYRIGHT INFRINGEMENT? 382. IS PAYMENT OF PREMIUM REQUIRED
(a) Injunction to prevent infringement FOR INSURANCE CONTRACTS TO BE
(b) Action for damages which should be filed VALID AND BINDING? As a general rule, yes.
within 4 years from the time the cause of Under Section 77 of the Amended Insurance
action arose Code (AIC), notwithstanding any agreement to
(c) Impoundment during pendency of an the contrary, no
action policy or contract
(d) Destruction without compensation of all of insurance
infringing copies and devices issued by an
(e) Criminal case IPC216 insurance
company is valid
INSURANCE and binding
unless and until
378. WHEN IS A CONTRACT OF INSURANCE the premium
PERFECTED? An insurance contract is a thereof has been
consensual contract and is therefore perfected paid.
the moment there is a meeting of minds with
respect to the object and cause or 383. WHEN IS PAYMENT OF PREMIUM NOT
consideration, following the “cognition REQUIRED FOR INSURANCE CONTRACTS
theory.” TO BE VALID AND BINDING? Payment of
premium is not required for insurance
379. WHAT IS THE EFFECT OF DELAY IN THE contracts to be effective:
ACCEPTANCE OF THE POLICY? IS THERE (a) In case of life and industrial life whenever
AN EXCEPTION? As a general rule, mere the grace period provision applies;
delay in acceptance of the insurance (b) Where there is an acknowledgment in the
application will not result in a binding contract. contract or policy of insurance that the
A contract of insurance, like other contracts, premium had already been paid;
must be assented to by both parties either in (c) If the parties have agreed to the payment
person or by their agents. So long as an of the premium in installments and partial
application for insurance has not been either payment has been made at the time of the
accepted or rejected, it is merely an offer or loss;
proposal to make a contract. There can be no (d) Where a credit term was agreed upon; and
contract of insurance unless the minds of the (e) Where the parties are barred by estoppel .
parties have met in agreement. An exception
to this rule is when there is a prior agreement 384. WHAT IS INSURABLE INTEREST? In
fixing the date of effectivity. general, an insurable interest is that interest
which a person is deemed to have in the
380. WHY ARE INSURANCE COMPANIES subject matter insured, where he has a relation
REQUIRED TO ACT WITH HASTE UPON or connection with or concern in it, such that
INSURANCE APPLICATIONS? Being the person will derive pecuniary benefit or
contracts of adhesion, insurance contracts are advantage from the preservation of the subject
imbued with public interest that must be matter insured and will suffer pecuniary loss or
considered whenever the rights and damage from its destruction, termination, or
obligations of the insurer and the insured are injury by the happening of the event insured
to be delineated. Hence, in order to protect the against.
interest of insurance applicants, insurance
companies must be obligated to act with haste
upon insurance applications, to either deny or
approve the same, or otherwise be bound to
385. OF WHOM DOES A PERSON HAVE and the interest in the insurance are vested in
INSURABLE INTEREST OVER LIFE OR the same person. The exceptions are:
HEALTH? Under Section 10 of the AIC, every (a) In case of life, accident, and health
person has an insurable interest in the life or insurance;
health: (b) A change of interest in a thing insured,
(a) Of himself/herself, his/her spouse and of after the occurrence of an injury which
his/her children; results in a loss does not affect the right of
(b) Of any person on whom he/she depends the insured for the indemnity for the loss;
wholly or in part for education and support, (c) A change of interest in one or more of
or in whom he/she has a pecuniary several and distinct things, separately
interest; insured by one policy, does not avoid the
(c) Of any person under a legal obligation to insurance as to the others;
him for the payment of money, or (d) A change of interest, by will or succession,
respecting property or services, of which on the death of the insured does not avoid
death or illness might prevent or delay the the insurance, and his/her interest in the
performance; and, insurance passes to the person taking
(d) Of any person whose life any estate of his/her interest in the thing insured; and,
interest vested in him/her depends. (e) A transfer of interest by one of several
partners, joint owners, or owners in
386. WHEN IS A PERSON DEEMED TO HAVE common, who are jointly insured, to the
AN INSURABLE INTEREST OVER THE others, does not avoid an insurance even
THING OR PERSON INSURED? A person is though it has been agreed that the
deemed to have an insurable interest over the insurance shall cease upon an alienation of
thing or person insured when has a relation or the thing insured.
connection with or concern in it that he/she will
derive pecuniary or financial benefit or 390. WHAT IS THE EFFECT OF LACK OF
advantage from its destruction, termination, or INSURABLE INTEREST OVER THE THING
injury by the happening of the event insured INSURED? The insurance contract or policy
against. becomes unenforceable. Under Section 18 of
the AIC, no contract or policy of insurance
387. IS INSURABLE INTEREST PECUNIARY shall be enforceable except for the benefit of
IN NATURE? IF YES, WHAT IS THE some person having an insurable interest in
EXCEPTION? WHAT IS THE EXCEPTION TO the property insured.
THE EXCEPTION? Yes. It is required that the
insured will derive pecuniary or financial 391. WHEN SHOULD INSURABLE INTEREST
benefit or advantage from its destruction, IN LIFE OR HEALTH EXIST? Under Section
termination, or injury by the happening of the 19 of the AIC, interest in the life or health of a
event insured against. The exception is life person insured must exist when the insurance
insurance. However, when a creditor takes on takes effect, but need not exist thereafter or
an insurance on the life of his/her debtor, the when the loss occurs.
creditor’s recovery upon the death of said
debtor is limited to the amount of his/her 392. WHAT IS CONSIDERED AS AN
interest (debt). INSURABLE INTEREST IN PROPERTY?
Under Section 13 of the AIC, every interest in
388. WHAT IS THE INSURABLE INTEREST OF property whether real or personal, or any
A CARRIER OR DEPOSITARY OF ANY KIND relation thereto, or liability in respect thereof,
OVER THE THING INSURED? Under Section of such nature a contemplated peril might
15 of the AIC, a carrier or depositary of any directly damnify the insured.
kind has an insurable interest in a thing held by
him/her as such, to the extent of his/her liability 393. OF WHAT MAY INSURABLE INTEREST
but not to exceed the value thereof. IN PROPERTY CONSIST? Under Section 14
of the AIC, an insurable interest in property
389. WHAT IS THE EFFECT OF CHANGE OF may consists of:
INTEREST IN THE THING INSURED? ARE (a) An existing interest;
THERE ANY EXCEPTIONS? Under Section (b) An inchoate interest founded on an
20 of the AIC, a change of interest in any part existing interest;
of a thing insured unaccompanied by a (c) An expectancy, coupled with an existing
corresponding change in interest in the interest in that out of which the expectancy
insurance, suspends the insurance to an arises.
equivalent extent, until the interest of the thing
394. WHEN SHOULD INSURABLE INTEREST or of its last reinstatement, unless the policy
IN PROPERTY EXIST? Under Section 19 of provides a shorter period.AIC183
the AIC, it must exist when the insurance takes
effect, and when the loss occurs, but need not 401. If the insured committed SUICIDE IN THE
exist in the meantime. STATE OF INSANITY, such shall be
compensable regardless of the date of
395. Whenever a RIGHT TO RESCIND A commission. AIC183
CONTRACT OF INSURANCE is given to the
insurer by law, such right must be exercised 402. WHAT IS THE “INCONTESTABILITY
previous to the commencement of an action CLAUSE”? It is a provision in law that after a
on the contract.AIC48 policy of life insurance made payable on the
death of the insured shall have been in force
396. WHAT IS LIFE INSURANCE? Life during the lifetime of the insured for a period
insurance is insurance on human lives and of 2 years from the date of its issue or of its last
insurance appertaining thereto or connected reinstatement, the insurer cannot prove that
therewith. Likewise, contracts or undertakings the policy is void ab initio or is rescindable by
for the payment of annuities including reason of the fraudulent concealment or
contracts for the payment of lump sums under misrepresentation of the insured or his
a retirement program where a life insurance agent.AIC48
company manages or acts as a trustee for
such retirement program are considered a life 403. WHAT IS THE POLICY BEHIND THE
insurance contract for purposes of the AIC. INCONTESTABILITY CLAUSE? The insurer is
AIC181
deemed to have the necessary facilities to
discover such fraudulent concealment or
397. WHAT IS THE MEASURE OF INDEMNITY misrepresentation within a period of 2 years. It
UNDER A POLICY OF INSURANCE UPON is not fair for the insurer to collect the
LIFE AND HEALTH? Unless the interest of a premiums as long as the insured is still alive,
person insured is susceptible of exact only to raise the issue of fraudulent
pecuniary measurement, the measure of concealment or misrepresentation when the
indemnity under such policy is the sum fixed in insured dies in order to defeat the right of the
the policy.AIC186 beneficiary to recover under the policy. MANILA
BANKERS VS. ABAN
The purpose of the law is to give
398. A policy of protection to the insured or his/her beneficiary
insurance upon by limiting the rescinding of the contract of
life or health insurance to a period of only 2 years from the
MAY PASS BY issuance of the policy or its last
TRANSFER, reinstatement.MANILA BANKERS VS. ABAN
WILL OR
SUCCESSION to 404. WHEN IS THE INTEREST OF A
any person, BENEFICIARY IN A LIFE INSURANCE
whether he has POLICY FORFEITED? The interest of a
an insurable beneficiary in a life insurance policy shall be
interest or not, and such person may recover forfeited when the beneficiary is the principal,
upon it whatever the insured might have accomplice, or accessory in willfully bringing
recovered.AIC184 about the death of the insured.AIC12
399. WHEN IS AN INSURANCE UPON LIFE 405. IF THE INTEREST OF A BENEFICIARY IN

PAYABLE? An insurance upon life may be A LIFE INSURANCE POLICY IS
made payable: FOREGEITED, TO WHOM SHALL THE
(a) on the death of the person, or PROCEEDS BE PAID? In such a case, the
(b) on his/her surviving a specified period, or share forfeited shall pass on to the other
(c) otherwise contingently on the continuance beneficiaries, unless otherwise disqualified. In
or cessation of life.AIC182 the absence of other beneficiaries, the
proceeds shall be paid in accordance with the
400. WHEN IS THE INSURER IN A LIFE policy contract. If the policy contract is silent,
INSURANCE LIABLE IN CASE OF SUICIDE? the proceeds shall be paid to the estate of the
The insurer in a life insurance contract shall be insured. AIC12
liable in case of suicide only when it is
committed after the policy has been in force
for a period of 2 years from the date of its issue
406. DOES A BENEFICIARY IN A LIFE DATA PRIVACY

INSURANCE NEED TO HAVE INSURABLE
INTEREST IN THE LIFE OF THE INSURED? In 409. Under Section 3 of the Data Privacy Act
the case where the insured secures a life (DPA), DATA SUBJECT refers to an individual
insurance policy on his/her own life, it is of no whose personal information is processed.
moment whether or not the individual
designated by such insured as beneficiary has 410. CONSENT of the data subject refers to any
an insurable interest in the life of the insured, freely given, specific, informed indication
there being no provision in either the AIC or of will, whereby the data subject agrees to
the NCC requiring that the beneficiary have an the collection and processing of personal
insurable interest in the life of the insured, information about and/or relating to him or her.
subject to the application of Article 2012 in DPA3
relation to Article 739 of the NCC. Therefore,

there is no legal impediment to the designation 411. PERSONAL INFORMATION refers to any
as beneficiary of the domestic partner of an information whether recorded in a material
insured who has secured a life insurance form or not, from which the identity of an
policy on his/her own life.IC Legal Opinion 2020-02 individual is apparent or can be reasonably
and directly ascertained by the entity
407. WHERE A MORTGAGOR OF PROPERTY holding the information, or when put together
EFFECTS INSURANCE IN HIS/HER OWN with other information would directly and
NAME PROVIDING THAT THE LOSS SHALL certainly identify an individual. DPA3
BE PAYABLE TO THE MORTGAGEE, OR
ASSIGNS A POLICY OF INSURANCE TO A 412. PERSONAL INFORMATION
MORTGAGEE, UPON WHOSE INTEREST IS CONTROLLER refers to a person or
THE INSURANCE DEEMED TO BE? Under organization who controls the collection,
Section 8 of the AIC, unless the policy holding, processing or use of personal
otherwise provides, where a mortgagor of information, including a person or
property effects insurance in his/her own organization who instructs another person or
name providing that the loss shall be payable organization to collect, hold, process, use,
to the mortgagee, or assigns a policy of transfer or disclose personal information on
insurance to a mortgagee, the insurance is his or her behalf. The term excludes:
deemed to be upon the interest of the (a) A person or organization who performs
mortgagor. such functions as instructed by another
person or organization; and
408. WHAT ARE THE INSTANCES WHEN THE (b) An individual who collects, holds,
INSURED IS ENTITLED TO A REFUND OF processes or uses personal information in
PREMIUMS PAID? A person insured is connection with the individual’s personal,
entitled to return a premium: family or household affairs. DPA3
(a) If the thing insured was never exposed to
the risks insured against; 413. PERSONAL INFORMATION
(b) When the insurance is for a definite period PROCESSOR refers to any natural or juridical
and the insured surrenders his/her policy person qualified to act as such under DPA to
before the termination thereof; whom a personal information controller may
(c) The contract is voidable and subsequently outsource the processing of personal data
annulled under the provisions of the NCC; pertaining to a data subject. DPA3
(d) When the contract is voidable due to the
fraud or misrepresentation of insurer or of 414. PROCESSING refers to any operation or
his agent; any set of operations performed upon personal
(e) When the contract is annulled on account information including, but not limited to, the
of the fraud or misrepresentation of the collection, recording, organization,
insurer or of his agent or on account of storage, updating or modification, retrieval,
facts, or the existence of which the insured consultation, use, consolidation, blocking,
was ignorant of without his/her fault; erasure or destruction of data. DPA3
(f) When by default of the insured other than
actual fraud, the insurer never incurred any
liability under the policy;
(g) When there is over-insurance; and
(h) When rescission is granted due to the
insurer’s breach of contract.
415. SENSITIVE PERSONAL INFORMATION access to personal information;

refers to personal information: and
(a) About an individual’s race, ethnic origin, (c) The entity has other links in the
marital status, age, color, and religious, Philippines such as, but not limited to:
philosophical or political affiliations; 1) The entity carries on business in
(b) About an individual’s health, education, the Philippines; and
genetic or sexual life of a person, or to 2) The personal information was
any proceeding for any offense collected or held by an entity in the
committed or alleged to have been Philippines.DPA6
committed by such person, the disposal of
such proceedings, or the sentence of any 418. WHEN DOES THE DPA NOT APPLY?
court in such proceedings; When:
(c) Issued by government agencies peculiar to (a) Information about any individual who is or
an individual which includes, but not was an officer or employee of a
limited to, social security numbers, government institution that relates to the
previous or current health records, position or functions of the individual;
licenses or its denials, suspension or (b) Information about an individual who is or
revocation, and tax returns; and was performing service under contract
(d) Specifically established by an executive for a government institution that relates
order or an act of Congress to be kept to the services performed;
classified. DPA3 (c) Information relating to any discretionary
benefit of a financial nature;
416. WHAT IS THE SCOPE OF THE DATA (d) Personal information processed for
PRIVACY ACT? Said act applies to the journalistic, artistic, literary, or
processing of all types of personal information research purposes;
and to any natural and juridical person (e) Information necessary in order to carry out
involved in personal information processing the functions of public authority;
including those personal information (f) Information necessary for banks and
controllers and processors who, although not other financial institutions; and
found or established in the Philippines, use (g) Personal information originally collected
equipment that are located in the Philippines, from residents of foreign jurisdictions in
or those who maintain an office, branch or accordance with the laws of those foreign
agency in the Philippines, except when DPA is jurisdictions. DPA4
not applicable, subject to the requirements of
extraterritorial application.DPA4 419. WHAT ARE THE PRINCIPLES THAT
GOVERN PROCESSING OF PERSONAL
417. WHEN DOES THE DPA APPLY TO AN INFORMATION?
ENTITY’S ACT DONE OR PRACTICE The processing
ENGAGED IN AND OUTSIDE OF THE of personal
PHILIPPINES? Said act applies if: information shall
(a) The act, practice or processing relates to be allowed,
personal information about a Philippine subject to
citizen or a resident; compliance with
(b) The entity has a link with the Philippines, the requirements
and the entity is processing personal of the DPA and
information in the Philippines or even if the other laws
processing is outside the Philippines as allowing disclosure of information to the public
long as it is about Philippine citizens or and adherence to the principles of
residents such as, but not limited to, the transparency, legitimate purpose and
following: proportionality.DPA11
1) A contract is entered in the
Philippines; 420. PERSONAL INFORMATION must, be:
2) A juridical entity unincorporated in (a) Collected for legitimate purposes;
the Philippines but has central (b) Processed fairly and lawfully;
management and control in the (c) Accurate, relevant and, kept up to date;
country; and (d) Adequate and not excessive;
3) An entity that has a branch, (e) Retained only for as long as necessary;
agency, office or subsidiary in the and
Philippines and the parent or (f) Kept in a form which permits identification
affiliate of the Philippine entity has of data subjects for no longer than is
necessary. DPA11
421. The PERSONAL INFORMATION 424. WHEN CAN THE PROCESSING OF

CONTROLLER must ensure implementation PERSONAL INFORMATION BE
of personal information processing principles SUBCONTRACTED? A personal information
set out in the DPA. DPA11 controller may subcontract the processing of
personal information; provided, that the
422. WHEN IS PROCESSING OF PERSONAL personal information controller shall be
INFORMATION LAWFUL? The processing of responsible for ensuring that proper
personal information shall be permitted only if safeguards are in place to ensure the
not otherwise prohibited by law, and when at confidentiality of the personal information
least one of the following conditions exists: processed, prevent its use for unauthorized
(a) The data subject has given his/her purposes, and generally, comply with the
consent; requirements of the DPA and other laws for
(b) The processing of personal information is processing of personal information.DPA14
necessary and is related to the fulfillment
of a contract with the data subject; 425. CAN PERSONAL INFORMATION
(c) The processing is necessary for CONTROLLERS INVOKE THE PRINCIPLE
compliance with a legal obligation; OF PRIVILEGED COMMUNICATION OVER
(d) The processing is necessary to protect THE PRIVILEGED INFORMATION THAT
vitally important interests of the data THEY LAWFULLY CONTROL OR PROCESS?
subject; Yes, personal information controllers may
(e) The processing is necessary in order to invoke the principle of privileged
respond to national emergency, to communication over privileged information
comply with the requirements of public that they lawfully control or process. Subject to
order and safety, or to fulfill functions of existing laws and regulations, any evidence
public authority; or gathered on privileged information is
(f) The processing is necessary for the inadmissible. DPA15
purposes of the legitimate interests
pursued by the personal information 426. WHAT ARE THE RIGHTS OF A DATA
controller or by a third party or parties to SUBJECT?
whom the data is disclosed. DPA12 (a) Right to be informed that his/her personal
data will be, are being, or were, collected
423. WHEN IS THE PROCESSING OF and processed;
SENSITIVE AND PRIVILEGED (b) Right to access from an organization a
INFORMATION ALLOWED? The processing copy of any information relating to him/her;
of sensitive personal information and (c) Right to object if the personal data
privileged information shall be prohibited, processing involved is based on consent
except in the following cases: or on legitimate interest (exceptions:
(a) The data subject has given his/her processing is pursuant to a subpoena, for
consent; obvious purposes (contract, employer-
(b) The processing of the same is provided for employee relationship, etc.) or a result of
by existing laws and regulations; legal obligation);
(c) The processing is necessary to protect (d) Right to erasure or blocking of personal
the life and health of the data subject or data;
another person; (e) Right to damages in case of inaccurate,
(d) The processing is necessary to achieve the incomplete, outdated, false, unlawfully
lawful and noncommercial objectives of obtained or unauthorized use of personal
public organizations and their associations; data;
(e) The processing is necessary for purposes (f) Right to file a complaint with the National
of medical treatment; or Privacy Commission (NPC) if personal
(f) The processing concerns such personal information has been misused, maliciously
information as is necessary for the disclosed, or improperly disposed, or any
protection of lawful rights and interests of the foregoing rights has been violated;
of natural or legal persons in court (g) Right to rectify any inaccuracy or error in
proceedings, or the establishment, the data held by a personal information
exercise or defense of legal claims, or controller; and
when provided to government or public (h) Right to data portability or the right to
authority. DPA13 obtain and electronically move, copy, or
transfer personal data in a secure manner,
for further use.
427. ARE THE RIGHTS OF A DATA SUBJECT (d) The personal information controller must
TRANSMISSIBLE? Yes, they are. The lawful further ensure that third parties processing
heirs and assigns of the data subject may personal information on its behalf shall
invoke the rights of the data subject for, which implement the security measures
he/she is an heir or assignee at any time after required by the DPA.
the death of the data subject or when the data (e) The employees, agents or representatives
subject is incapacitated or incapable of of a personal information controller who
exercising the rights of the data subject. DPA17 are involved in the processing of personal
information shall operate and hold
428. WHEN ARE THE RULES ON RIGHTS OF personal information under strict
A DATA SUBJECT NOT APPLICABLE? The confidentiality if the personal information
rules on rights, its transmissibility, and are not intended for public disclosure.
portability are not applicable: (f) The personal information controller shall
(a) if the processed personal information are promptly notify the NPC and affected
used only for the needs of scientific and data subjects when sensitive personal
statistical research; and information or other information that may,
(b) to processing of personal information under the circumstances, be used to
gathered for the purpose of investigations enable identity fraud are reasonably
in relation to any criminal, administrative or believed to have been acquired by an
tax liabilities of a data subject. DPA19 unauthorized person, and the personal
information controller or the NPC believes
429. WHAT ARE THE DUTIES AND that such unauthorized acquisition is likely
RESPONSIBILITES OF THE PERSONAL to give rise to a real risk of serious harm to
INFORMATION CONTROLLER TO ENSURE any affected data subject. DPA20
SECURITY OF PERSONAL INFORMATION?
(a) The personal information controller must 430. WHAT ARE THE CRIMINAL VIOLATIONS
implement reasonable and appropriate OF THE DATA PRIVACY ACT?
organizational, physical and technical (a) Unauthorized processing of personal
measures intended for the protection of information and sensitive personal
personal information against any informationDPA25;
accidental or unlawful destruction, (b) Accessing personal information and
alteration and disclosure, as well as against sensitive personal information due to
any other unlawful processing.
negligenceDPA26;
(b) The personal information controller shall
(c) Improper disposal of personal information
implement reasonable and appropriate
measures to protect personal information and sensitive personal information; DPA27
against natural dangers and human (d) Unauthorized processing of personal
dangers. information and sensitive personal
(c) The determination of the appropriate level informationDPA28;
of security must take into account the (e) Unauthorized access or intentional
nature of the personal information to be breachDPA29;
protected, the risks represented by the (f) Concealment of security breaches
processing, the size of the organization involving sensitive personal
and complexity of its operations, current informationDPA30
;
data privacy best practices and the cost of (g) Malicious disclosureDPA31; and
security implementation. (h) Unauthorized disclosureDPA3
Panginoon, salamat po sa pagkakataong sumubok na maging isang ganap na abogado.

Salamat po sa lahat ng mga taong nagmamahal at patuloy na sumusuporta sa aming lahat—sa aming mga kapamilya,
kaibigan, guro, kaklase, kasama na rin ng mga taong hindi namin kakilala ngunit nagbibigay sa amin ng
karagdagang pag-asa upang mapagtagumpayan ang nalalapit na pagsusulit. Gaano man kami katapang at kahanda,
batid Ninyo kung ano ang tunay naming nararamdaman sa aming mga puso. Nawa’y tanggalin Nyo lahat ng pag-
aagam-agam at pagdududa sa aming puso at isipan. Muli Ninyong ipaalala sa amin ang walang katapusang
pagmamahal na matagal na Ninyong ipinamalas at ipinaramdam sa amin. Hindi kami aabot nang ganito kalayo kung
wala kaming kakayahan upang tapusin ang kahuli-huling hakbang patungo sa katuparan ng aming mga pangarap. Sa
mga susunod pang mga araw, ipanatag Ninyo nawa ang aming puso at isipan upang buo naming maalala lahat ng
aming inaral. Iniaalay po naming lahat ang Inyong ipinangakong tagumpay para sa kapurian ng Inyong Pangalan.
Lahat ng ito ay aming buong pusong ipinapanalangin sa ngalan ng Maykapal at tanging Tagapagligtas.
AMEN.

NBV LMT For Bar 2022 On Civil and Commercial Laws

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NBV LMT For Bar 2022 On Civil and Commercial Laws

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LAST-MINUTE TIPS FOR THE 2020/2021/2022 BAR EXAMINATIONS ON

THE LAW PERTAINING TO PRIVATE PERSONAL AND COMMERCIAL RELATIONS

7. CAN SAME-SEX MARRIAGES BE 15. While a MARRIAGE CONTRACT is the best

union between a man and a woman entered

79. WHEN IS A HOUSE CONSIDERED A use reasonable force to repel or prevent an

109. The co-owners cannot demand a 117. To be deemed a BUILDER IN GOOD

110. HOW CAN A CO-OWNED PROPERTY BE 118. WHEN IS A BUILDER CONSIDERED IN

119. DOES A RIPARIAN OWNER WHOSE apparent. It may be acquired by virtue of

130. As between a right of way that would

132. WHAT HAPPENS IF THE RIGHT OF WAY reason of circumstances, location, or

134. PRESCRIPTION OF ACTIONS: 140. A PRIVATE

(a) Injures or endangers the health or safety

136. A nuisance PER SE is a nuisance at all

144. A private person or a public official reimbursement from Y when Y becomes

CONTRACTS while one entered into by one prohibited to do

206. The BORROWER in a commodatum 212. While there is no ceiling imposed on

254. SALIENT FEATURES OF THE DAMAGES

TRANSIT CORP. VS. COURT OF APPEALS

260. Damages for loss of earning capacity were

261. WHEN ARE ATTORNEY’S FEES 265. WHEN IS A CORPORATION ENTITLED

263. Persons exercising SUBSTITUTE 270. LIQUIDATED DAMAGES shall substitute

264. SURVIVING BROTHERS AND SISTERS

sole liabilities. Therefore, the corporation’s

296. WHAT IS THE DOCTRINE OF PIERCING (f) Number of directors/trustees

315. WHEN MAY A CORPORATION ACQUIRE 320. DOCTRINE OF APPARENT AUTHORITY:

326. INDEPENDENT DIRECTOR is a person 328. WHEN DOES A PERSON BECOME A

343. POWERS OF THE CORPORATION AND VOTE

348. INDIVIDUAL ACTIONS are those brought intra-corporate controversies, as provided

SEC was given original and exclusive

359. WHEN AN INTRA-CORPORATE expressed, explained, illustrated or

INTELLECTUAL PROPERTY 364. WHAT ARE THE ECONOMIC RIGHTS OF

371. RULES ON PRESUMPTION OF If not published 50 years from the

399. WHEN IS AN INSURANCE UPON LIFE 405. IF THE INTEREST OF A BENEFICIARY IN

406. DOES A BENEFICIARY IN A LIFE DATA PRIVACY

relation to Article 739 of the NCC. Therefore,

415. SENSITIVE PERSONAL INFORMATION access to personal information;

421. The PERSONAL INFORMATION 424. WHEN CAN THE PROCESSING OF

Panginoon, salamat po sa pagkakataong sumubok na maging isang ganap na abogado.

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