Magis Notes Pre-Week Day 2

ATENEO CENTRAL DAY 2
BAR OPERATIONS 2022 CRIMINAL AND COMMERCIAL LAW
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TABLE OF CONTENTS: CRIMINAL LAW
I. PRINCIPLES OF CRIMINAL LAW.....................................................................................................8
A. GENERAL PRINCIPLES .............................................................................................................8

B. FELONIES ............................................................................................................................. 10
II. CRIMES UNDER THE REVISED PENAL CODE ................................................................................ 37
A. CRIMES AGAINST NATIONAL SECURITY AND THE LAWS OF NATION ......................................37

B. CRIMES AGAINST THE FUNDAMENTAL LAW OF THE STATE.................................................... 37
C. CRIMES AGAINST PUBLIC ORDER .......................................................................................... 38
D. CRIMES AGAINST PUBLIC INTEREST ...................................................................................... 38
E. CRIMES AGAINST PUBLIC MORALS ....................................................................................... 40
F. CRIMES COMMITTED BY PUBLIC OFFICERS ........................................................................... 40
G. CRIMES AGAINST PERSONS ..................................................................................................41
H. CRIMES AGAINST PERSONAL LIBERTY AND SECURITY ............................................................ 51
I. CRIMES AGAINST PROPERTY ................................................................................................ 53
J. CRIMES AGAINST CHASTITY .................................................................................................61
K. CRIMES AGAINST THE CIVIL STATUS OF PERSONS .................................................................62
L. CRIMES AGAINST HONOR ....................................................................................................62
M. QUASI-OFFENSES ................................................................................................................. 63
III. SPECIAL PENAL LAWS............................................................................................................... 64
A. ANTI-CHILD PORNOGRAPHY ACT OF 2009 (R.A. No. 9775) ..................................................... 64

B. ANTI-FENCING LAW OF 1979 (P.D. No. 1612) ........................................................................ 64
C. ANTI-GRAFT AND CORRUPT PRACTICES ACT (R.A. No. 3019, as amended by R.A. No. 3047, P.D.
No. 677, P.D. No. 1288, B.P. Blg. 195 and R.A. No. 10910) ..................................................... 65
D. ANTI-HAZING ACT OF 2018 (R.A. No. 8049, as amended by R.A. No. 11053) .......................... 67
E. ANTI-MONEY LAUNDERING ACT OF 2001 (R.A. No. 9160) ...................................................... 69
F. ANTI-PHOTO AND VIDEO VOYEURISM ACT OF 2009 (R.A. No. 9995) ......................................72
G. ANTI-PLUNDER ACT (R.A. No. 7080, as amended by R.A. No. 7659) ....................................... 72
H. ANTI-TORTURE ACT OF 2009 (R.A. No. 9745) ........................................................................ 73
I. ANTI-TRAFFICKING IN PERSONS ACT (R.A. No. 9208) ............................................................. 76
J. ANTI-VIOLENCE AGAINST WOMEN AND THEIR CHILDREN ACT OF 2004 (R.A. No. 9262) ......... 81
K. ANTI-WIRETAPPING ACT (R.A. No. 4200) .............................................................................. 83
L. BOUNCING CHECKS LAW (B.P. Blg. 22).................................................................................. 84
M. COMPREHENSIVE DANGEROUS DRUGS ACT OF 2002 (R.A. No. 9165 as amended by R.A. No.
10640) .................................................................................................................................87
N. CYBERCRIME PREVENTION ACT OF 2012 (R.A. No. 10175) ..................................................... 93
O. NEW ANTI-CARNAPPING ACT OF 2016 (R.A. No. 10883) ........................................................ 95
P. SPECIAL PROTECTION OF CHILDREN AGAINST ABUSE, EXPLOITATION, AND DISCRIMINATION
ACT (R.A. No. 7610) ............................................................................................................. 96
Q. SWINDLING BY SYNDICATE (P.D. No. 1689) ........................................................................... 99

IV. CRIMINAL LAW PRACTICAL EXERCISES ................................................................................... 101
A. COMPLAINT IN CRIMINAL CASES ........................................................................................ 101

B. INFORMATION IN CRIMINAL CASES .................................................................................... 103
C. AFFIDAVIT OF DESISTANCE................................................................................................. 105


I. PRINCIPLES OF CRIMINAL LAW Penalty imposed Violation of law is

depends on whether punished only when
the crime is accomplished or
A. GENERAL PRINCIPLES consummated, consummated because
frustrated, or intent is inherent in
1. MALA IN SE AND MALA PROHIBITA attempted attempted or frustrated
stage and intent is not
Q: What is the difference between intent to relevant in crimes mala
commit and intent to perpetrate? prohibita
MORAL TURPITUDE
A: Intent to commit the crime and intent to Crimes mala in se Not involved in crimes
perpetrate the act must be distinguished. A person generally involve moral mala prohibita because
may not have consciously intended to commit a turpitude logically so the act would not have
crime; but he did intend to commit an act, and that for its basis is the moral been wrong if not for the
act is, by the very nature of things, the crime itself. state of the offender prohibition by law
When an act is prohibited by a special law, it is LAW VIOLATED
considered injurious to public welfare, and the Generally, the Revised Generally, special penal
performance of the prohibited act is the crime itself. Penal Code laws
(Sama y Hinupas vs. People, G.R. No. 224469, J.
CAGUIOA) (Boado, Compact Reviewer in Criminal Law)
Q: What is the difference between Mala In Se and —end of topic—

Mala Prohibita?
MALA IN SE MALA PROHIBITA 2. APPLICABILITY AND EFFECTIVITY

BASIS OF THE RPC
Moral state of the Voluntariness
offender a. Generality
GOOD FAITH
Good faith or lack of Good faith or lack of Q: What is the Generality principle of Criminal
criminal intense is a criminal intense is not a Law?
defense defense unless intent is
an element of the crime A: Penal laws and those of public security and
(e.g. Sec. 3[e] of R.A. safety shall be obligatory upon all who live or
3019) sojourn in the Philippine territory, subject to the
MODIFYING CIRCUMSTANCES principles of public international law and to treaty
Taken into account in Not considered because stipulations. (Art. 14, NCC)
imposing the penalty the law intends to
on the offender discourage the Q: What are the exceptions to the Generality
precisely because his commission of the acts principle of Criminal Law?
moral trait is the basis specially prohibited
of the crime. Greater a. Treaty Stipulations (e.g. RP-US Visiting
perversity deserves a Forces Agreement)
higher penalty whereas b. Laws on Preferential Application (e.g. R.A.
lesser depravity 75)
deserves mitigation c. Principles of Public International Law (e.g.
DEGREE OF PARTICIPATION blanket diplomatic immunity)
Penalty is computed on Penalty on the offenders
the basis of whether is the same as they are b. Territoriality
the malefactor is a all deemed principals
principal offender, or Q: What is the Territoriality principle of Criminal
merely an accomplice Law?
or accessory
A: Penal laws have the force and effect only within
its territory. (Art 2, RPC)
STAGE OF ACCOMPLISHMENT Q: What are the exceptions to the Territoriality

principle of Criminal Law?

A: Penal laws are not applicable within or without c. Prospectivity

Philippine territory if so provided in:
1. Treaties; and Q: What is the Prospectivity principle of Criminal
2. Laws of preferential application. (Art. 2, Law?
RPC)
A: A penal law cannot make an act punishable in a
Q: What are the exceptions to the rule that penal manner in which it was not punishable when
laws of the Philippines are enforceable only committed. The rule of non-retroactivity applies.
within its territory?
No felony shall be punishable by any penalty not
1. Those who should commit an offense while prescribed by law prior to its commission. (Art. 21,
on a Philippine Ship or airship; RPC)
2. Those who should forge or counterfeit any
coin or currency note of the Philippine Q: What is the exception to the Prospectivity
Islands or obligations and securities issued principle of Criminal Law?
by the government of the Philippine
Islands; A: There may be retroactive effect when the new
3. Those who should be liable for acts law is favorable to the accused (Art. 22, RPC) such
connected with the introduction into these as when law prescribes a lighter penalty for the
islands of the obligations and securities crime committed.
mentioned in the preceding number;
4. Those who, while being public officers or Q: What are the exceptions to the exception to
employees, should commit an offense in the Prospectivity principle of Criminal Law?
the exercise of their functions;
5. Those who should commit any of the 1. Where the new law is expressly made
crimes against national security and the law inapplicable to pending actions or existing
of nations defined in Title One of Book Two causes of action (Tavera v. Valdez, G.R.
(Arts. 114-123, RPC) No. L-922, 1902); and
(Art. 2, RPC) 2. When the accused is a habitual delinquent
(Art 22, RPC)
Q: Differentiate between the French Rule and the
English Rule. Q: What is the effect of a repeal of a penal law?
FRENCH RULE ENGLISH RULE Absolute or total repeal or express repeal:

GENERAL RULE 1. Pending case – Dismissed whether the
Crimes committed Crimes committed accused is a habitual delinquent or not
aboard a foreign vessel aboard a foreign vessel 2. Offender has been convicted and
within the territorial within the territorial or/serving sentence – Released if he is
waters of a country are waters of the not a habitual delinquent or the law
subject to the Philippines are subject provides that detention is to continue
jurisdiction of the flag to the jurisdiction of the
state. Philippines. Partial or relative repeal, or implied repeal or
EXCEPTION repeal by re-enactment
The host country will The country of registry 1. First law will govern – If the accused is a
have jurisdiction if the will have jurisdiction habitual delinquent or when the favorable
crime affects the peace when the crime merely second law prohibits retroactivity
and security of the affects things within the 2. Second law will govern – If favorable to
territory, or endangers vessel or refers to the the offender who is not a habitual
the safety of the state internal management delinquent or the law is silent as to its
(e.g. drug-trafficking) thereof. retroactivity (Boado, Compact Reviewer in
Criminal Law)
When a Philippine merchant ship is in high seas, it
in effect is an extension of Philippine territory
because the crime shall be subject to Philippine
courts as the high seas is no within the jurisdiction 3. INTERPRETATION OF PENAL
of any country. (Boado, Compact Reviewer in LAWS
Criminal Law)

Q: How should a penal law, which admits of two

interpretations, be interpreted? a. Classification of Felonies
(Grave, Less Grave, and Light
A: The doctrine of in dubio pro reo provides that Felonies)
“[W]hen the court is faced with two possible
interpretations of a penal statute, one that is
Q: Differentiate between grave felonies, less
prejudicial to the accused and another that is
grave felonies, and light felonies.
favorable to him. The rule calls for the adoption of
an interpretation which is more lenient to the
a. GRAVE FELONIES - Punishable by
accused.” (Estate of Gonzalez v. People, G.R. No.
reclusion perpetua, reclusion temporal,
181409)
perpetual or temporary absolute
disqualification, perpetual or temporary
—end of topic—
special disqualification and prision mayor.
b. LESS GRAVE FELONIES - Punishable by
prision correccional, arresto mayor,
4. RETROACTIVE EFFECT OF PENAL suspension and destierro.
LAWS c. LIGHT FELONIES - Those infractions of
law for the commission of which the penalty
Q: What are ex post facto laws? of arresto menor or a fine not exceeding
40,000 pesos or both, is provided. Light
A: An ex post facto law is one which: felonies are punishable only when they
1. Makes criminal an act done before the passage have been consummated. They produce
of the law and which was innocent when done, such light, such insignificant moral and
and punishes such an act; material injuries that public conscience is
2. Aggravates a crime, or makes it greater than it satisfied with providing a light penalty for
was, when committed; their consummation.
3. Changes the punishment and inflicts a greater
punishment than the law annexed to the crime NOTE: Light felonies are punishable only
when committed; when they have been consummated. But
4. Alters the legal rules of evidence, and felonies committed against persons or
authorizes conviction upon less or different property, are punishable even if attempted
testimony than the law required at the time of or frustrated.
the commission of the offense;
5. Assuming to regulate civil rights and remedies Q: What is mistake of fact?
only, in effect imposes penalty or deprivation of
a right for something which when done was A: Mistake of fact is a misapprehension of fact on
lawful; and the part of the person who caused injury to another.
6. Deprives a person accused of a crime of some He is not criminally liable, because he did not act
lawful protection to which he has become with criminal intent. (Reyes, Book I)
entitled, such as the protection of a former
conviction or acquittal, or a proclamation of Q: What are the requisites of mistake of fact?
amnesty. (Mejia vs. Pamaran, G.R. Nos. L-
56741-42) A: The requisites of mistake of fact are as follows:
a. The act done would have been lawful had
Q: When may penal laws be given retroactive the facts been as the accused believed
effect? them to be;
1. If the law is favorable to the accused, who b. The intention of the accused in performing
is not a habitual delinquent; the act should be lawful; and
2. If the law decriminalizes an act; or c. The mistake must be without fault or
3. If the law expressly provides retroactivity. carelessness on the part of the accused.
(Campanilla, Criminal Law Reviewer Volume I) (Id)
—end of topic— b. Aberratio Ictus, Error in

Personae, And Praeter
B. FELONIES Intentionem
1. CRIMINAL LIABILITIES AND Q: Differentiate between aberratio ictus (mistake

in the blow), error in personae (mistake in
FELONIES

identity), praeter intentionem, and ignorantia

facti excusat (mistake of fact). c. Impossible Crimes
ABERRATIO ICTUS Q: What are the requisites of an impossible

The offender intends It is a compound crime crime?
the injury on one when the single act
person but the harm fell results in two or more 1. The act performed would be an offense
on another. crimes (Art. 48); against persons or property;
otherwise, the offenses 2. The act was done with evil intent;
shall be separately 3. Its accomplishment is inherently impossible
punished. or the means employed is either
ERROR IN PERSONAE inadequate or ineffectual; and
4. The act performed should not constitute a
Involves only one If the intended crime
Violation of another provision of the RPC.
offended party but the and crime actually
offender committed a committed are
Q: What is the difference between legal
mistake in ascertaining punished with different
impossibility and factual impossibility?
the identity of the penalties, the lesser
victim. penalty for the crime
Legal impossibility refers to intended acts even if
intended or committed
completed would not amount to a crime (e.g. killing
is imposed. If they are
a person already dead).
of the same gravity or
severity, the penalty is
Factual impossibility refers to extraneous
not mitigated (Art. 49)
circumstances unknown to the actor or beyond his
PRAETER INTENTIONEM
control prevent the consummation of the intended
The injury is on the Article 49 will not apply. crime (e.g. a man who puts his hand in another’s
intended victim but the pocket with intent to steal and finds the pocket
resulting consequence This is a mitigating empty). (Intod v. CA, G.R. No. 103119, 1992)
is much more grave circumstance. (Art. 13
than intended. par. 3) Q: A, B, C and D left the flea market and went to
IGNORANTIA FACTI EXCUSAT the house of E. B, upon seeing E, asked for a
A misapprehension of Not criminally liable, cigarette lighter. B struck E on the nape with a
fact on the part of the because the person did piece of firewood. B then took a bolo and hacked
person who caused not act with criminal E body on the side. E lost consciousness and as
injury to another. intent. he laid motionless on the ground, A stabbed him
twice in the chest using a knife. The lower courts
Q: The RTC found X guilty of the crime of found A guilty of murder qualified by treachery.
Murder, qualified by treachery. The CA affirmed A argues that he should only be convicted of
the RTC's conviction with modification only as committing an impossible crime. Allegedly, he
to the damages awarded despite the absence of cannot be held liable for Murder because it was
motive in the commission of the crime. X makes legally impossible for him to kill E as the latter
the claim that the CA erred in convicting him was already dead when B stabbed him. Is A’s
despite the prosecution's failure to establish a claim correct?
motive for the killing. Is X’s conviction for
Murder valid? A: No. The requisites of an impossible crime are: (1)
that the act performed would be an offense against
A: Yes. Motive pertains to the reason which prompts persons or property; (2) that the act was done with
the accused to engage in a particular criminal evil intent; and (3) that its accomplishment was
activity. It is not an essential element of a crime and inherently impossible, or the means employed was
need not be proven by the State in criminal either inadequate or ineffectual.
prosecutions. Hence, proof of motive alone will not
establish guilt in the same way that the absence The victim's fact of death before he was stabbed by
thereof cannot establish innocence. In previous A was not sufficiently established by the defense.
occasions, the Court has held that the question of While D testified that he thought E was already dead
motive only becomes material when there is doubt after he was hacked by B because the former was
as to the identity of the malefactor committing the already lying on the ground motionless, this
offense charged. (People v. Pentecostes y Cronico, statement cannot sufficiently support the conclusion
G.R. No. 226158, November 8, 2017, J. CAGUIOA) that, indeed, E was already dead when A stabbed

him. D’s opinion of the victim’s death was arrived at 2. Crimes consummated by mere attempt or
by merely looking at the latter's body. No other act proposal or overt act.
was done to ascertain this, such as checking of E's 3. Felony by omission – There is no attempted
pulse, heartbeat or breathing. (People v. Callao y stage in these crimes since the offender
Marcelino and Amad, G.R. No. 228945, Mar. 14, does not execute an act, but rather fails or
2018, J. CAGUIOA) omits to perform an act.
4. Crimes consummated by mere agreement
d. Stages of Execution (requires the intervention of two persons).
5. Material crimes – Crimes which have three
Q: Distinguish the three stages of committing a stages of execution (attempted, frustrated
felony. and consummated).
(Reyes, Book I)
a. ATTEMPTED – When the offender
commences the execution of the felony by Q: What are examples of crimes that do not have
overt acts but does not perform all the acts a frustrated stage?
of execution by reason of some cause or
accident other than his own spontaneous 1. Rape, because the gravamen of the offense is
desistance. carnal knowledge, so no matter how slight the
b. FRUSTRATED – When the offender penetration, the felony is consummated
performs all the acts of execution of the 2. Indirect bribery, because the offense is
felony but does not produce it by reason of committed by accepting gifts offered to the
causes independent of the will of the public officer by reason of his office
offender. 3. Corruption of public officers, since the crime
requires the concurrence of the will of both
c. CONSUMMATED – When the offender
parties
performs all the acts of execution and
4. Adultery, because the essence of the crime is
produces the felony. (Art. 6, RPC)
sexual congress
5. Physical injury, since its determination
Q: What are overt acts?
whether slight, less serious, or serious can only
be made once it is consummated
A: An overt act is some physical activity or deed,
6. Theft, since unlawful taking immediately
indicating the intention to commit a particular crime,
consummates the offense and the disposition of
more than a mere planning or preparation, which if
the thing is not an element
carried to its complete termination following its
natural course, without being frustrated by external
obstacles nor by the voluntary desistance of the e. Continuing Crimes
perpetrator, will logically and necessarily ripen into
a concrete offense. It is possible that an overt act Q: What is a continuing or continued crime?
may not be by physical activity but by mere
communication or proposal. (People v. Lizada, G.R. A: It is a single crime, consisting of a series of acts
No. 143468-71) but all arising from one criminal resolution. Although
there is a series of acts, there is only one crime
Q: When is spontaneous desistance committed; thus, only one penalty shall be imposed.
exculpatory? (Mallari v. People, G.R. No. L- 58886, 1988)
1. When made during the attempted stage; Q: Is a continued crime a complex crime?
AND
2. The acts already committed do not A: A continued crime is not a complex crime
constitute any other offense. (People v. because the offender in continued or continuous
Villacorte, G.R. No. L-21860, 1974) crime does not perform a single act, but a series of
acts, and one offense is not a necessary means for
Note: Cause for desistance is immaterial. (People v. committing the other. A continuous crime is a
Villacorte, G.R. No. L-21860, 1974) continuous, unlawful act or series of acts set on foot
by a single impulse and operated by an
Q: What are the manners of committing a crime? unintermittent force, however long a time it may
occupy. (Mallari vs. People, supra)
1. Formal crimes – These crimes are
consummated in one instant. There are no Q: What is an example of a continuing crime?
attempted or frustrated stages.

A: X defrauded A through falsification of a public

document by obtaining the title of a lot, belonging to Q: What are examples of compound crimes?
B, and by misrepresenting to A that B was badly in
need of money and was offering the title of the said a. When a single bullet results in the death of
lot as collateral for a loan of P1500. X executed a two or more persons. (People v Nelmida,
Deed of Real Estate Mortgage, signing the name of G.R. No. 184500)
B and induced A to deliver the amount of P1500. X b. A person fire a gun against another with
likewise defrauded C through the same means and intention to kill the latter, and not only kills
for the same amount. him but also a third person who was beside
the victim. We have a single act, a single
The series of acts committed by X amounts to a shot, which produces two homicides.
continued, continuous, or continuing offense. There (People v Buyco, G.R. No. L-539)
was only one deceit practiced by X on the 2 victims,
i.e. that being in need of money, B was willing to Q: What is a complex crime proper and the
mortgage 2 lots as security for a total loan of P3000. requisites thereof?
That there were 2 victims, however, did not
accordingly convert the crime into 2 separate A: A complex crime (proper) results when the
offenses, as the determinative factor is the unity or offender commits an offense which is a necessary
multiplicity of the criminal intent or of the means for committing another offense. (Art. 48,
transactions. RPC) Only one information shall be filed and if
proven, the penalty for the more serious crime shall
The singularity of the offense committed by be imposed. (People v. Pineda, G.R. No. L- 26222)
petitioner is further demonstrated by the fact that the
falsification of the 2 public documents as a means Requisites of a complex crime proper:
of committing estafa were performed on the same a. At least two offenses are committed;
date, in the same place, at the same time and on the b. One or some of the offenses must be
same occasion. (Mallari v. People, supra) Necessary to commit the other (Note:
necessary means is not equivalent to
indispensable means); and
f. Complex Crimes And c. Both or all of the offenses must be punished
Composite Crimes under the same statute.
Q: Define Plurality of Crimes. Q: What are examples of complex crimes

proper?
A: Plurality of crimes consists in the successive
execution by the same individual of different criminal 1. Direct assault with:
acts upon any of which no conviction has yet been a. Homicide;
declared. It is either formal or ideal plurality (only b. Murder;
one criminal liability) or real or material plurality c. Serious Physical Injuries or Less
(each act is a separate crime). (Reyes, Book I) Serious Physical Injuries; or
d. Tumults and other disturbances;
Q: What is a compound crime and the requisites 2. Estafa thru falsification of a public
thereof? document;
3. Malversation thru falsification;
A: A compound crime results when a single act 4. Discharge of firearm with SPI or LSPI;
constitutes 2 or more grave or less grave felonies. 5. Grave threats with intentional abortion;
6. Homicide with unintentional abortion;
7. Parricide with abortion (intentional or
unintentional);
Requisites of a compound crime: 8. Forcible abduction with rape (if there are
a. Only a single act is performed by the multiple rapes, only one will be complexed
offender; and with forcible abduction, and the rest shall be
b. The single act produces: considered separate crimes);
i. Two or more grave felonies; or 9. Simple seduction by means of usurpation of
ii. One or more grave and one or more official functions.
less grave felonies; or
iii. Two or more less grave felonies. Q: When is there no complex crime?

Q: What are examples of special complex

a. In case of continuous crimes crimes?
b. When one offense is committed to conceal
the other 1. Qualified Piracy or Qualified mutiny;
c. When the other crime is an indispensable 2. Robbery with:
part or an element of the other offenses a. Serious Physical Injuries (SPI):
d. Where one of the offenses is penalized by The victim should not be the
a special law robber; otherwise, they are
e. When the provision provides for a two- separate crimes. Note: under the
tiered penalty 4th act, violence need not result in
SPI; only that the violence be
Q: Distinguish the following from each other: unnecessary for the commission of
1) Complex crime under Article 48 of the the crime;
Revised Penal Code; b. Homicide: Intent to take personal
2) Special complex crime; and property must precede the killing.
3) Delito continuado. Otherwise, two separate crimes of
homicide/murder/parricide and
1. Complex crimes – There are two kinds of theft are committed. The law does
complex crimes. The first is known as not require that the victim of
compound crime, or when a single act robbery is also the victim of
constitutes two or more grave or less grave homicide; Rape: Intent to gain
felonies. The second is known as complex must also precede rape. This does
crime proper, or when an offense is a not cover robbery with attempted
necessary means for committing the other. rape.
(People v. Rebucan, G.R. No. 182551, July c. Intentional Mutilation: Castration
27, 2011) or mayhem; Arson: Robbery
should precede arson. And no
As to penalties in an ordinary complex rape, homicide, SPI, or intentional
crime, the penalty for the most serious mutilation should be committed or
crime shall be imposed and in its maximum else, arson will only be considered
period. (Art. 48, RPC) as an aggravation circumstance.
3. Rape with homicide (also, attempted and
2. Special Complex Crimes – It is made up frustrated rape with homicide): homicide
of two or more crimes which are considered must be by reason of or on occasion of
only as components of a single indivisible rape;
offense being punished in one provision of 4. Rape with serious illegal detention or
the RPC; hence, only one penalty is Kidnapping with rape: if there is an
specifically prescribed. The component attempted rape, it shall be considered as a
crimes are not regarded as distinct crimes separate crime. Regardless of the number
and so the penalty for the most serious of rapes, there is only one crime;
crime is not the penalty to be imposed nor 5. Kidnapping with
in its maximum period. (People v. Laraaga, a. Murder;
G.R. No. 138874- 75, 2004) b. Homicide (take note of specific
intent); Regardless of the number
3. Continuous or Continued Crime – It is of victims killed, there is one crime
the term used to denote as only one crime only of special complex crime of
a series of felonious acts arising from a kidnapping with homicide or
single criminal resolution, not susceptible of murder, as the case may be;
division, which are carried out in the same c. Serious Physical injuries.
place and at about the same time, and
violating one and the same penal provision. Q: Does Article 48 (Complex Crimes) apply to
acts penalized under Article 365 (Reckless
It involves a concurrence of felonious acts Imprudence)?
violating a common right, common penal
provision, and Impelled by a single criminal A: No. Article 48 is incongruent to the notion of
impulse. (People v. Ledesma, G.R. No. L- quasi-crimes under Article 365. It is conceptually
41522 1976) impossible for a quasi-offense to stand for (1) a
single act constituting two or more grave or less
grave felonies; or (2) an offense which is a

necessary means for committing another. (Ivler v. b. Reasonable necessity of the means
San Pedro, G.R. No. 172716. November 17, 2010) employed to prevent or repel it; an
c. The person defending be not induced
—end of topic— by revenge, resentment, or other evil
motive. (People v. Moral, G.R. No. L-
31139)
2. CIRCUMSTANCES AFFECTING
4. Avoidance of greater evil or injury
CRIMINAL LIABILITY
a. The evil sought to be avoided actually
exists;
a. Justifying Circumstances b. The injury feared be greater than that
done to avoid it; and
Q: What are justifying circumstances? c. There be no other practical and less
harmful means of preventing it. (Art.
A: Those where the act of a person is said to be in 11, par. 4)
accordance with law, so that such person is deemed
not to have transgressed the law and is free from 5. Performance of duty
both criminal and civil liability. There is no crime and a. The evil sought to be avoided actually
there is no criminal. exists
b. The injury feared be greater than that
Q: Is there civil liability for justifying done to avoid it; and
circumstances? c. There be no other practical and less
harmful means of preventing it. (Art.
A: There is also no civil liability, except in par. 4 of 11, par. 4)
Art. 11, RPC (avoidance of greater evil or injury).
6. Obedience to an order by a superior
Q: Enumerate the justifying circumstances. officer
1. Self-defense a. That an order has been issued by a

a. Unlawful aggression; superior
b. Reasonable necessity of the means b. That such order must be for some
employed to prevent or repel it; and lawful purpose
c. Lack of sufficient provocation on the c. That the means used by the
part of the person defending himself. subordinate to carry out said order is
(Art. 11, par. 1, RPC) lawful
NOTE: Both the person who gives the order
and the person who executes it, must be
2. Defense of relatives acting within the limitations prescribed by
a. Unlawful aggression; law (People v. Dolores, 52 Phil. 919)
b. Reasonable necessity of the means
employed to prevent or repel it; and Q: What is the difference between retaliation and
c. In case the provocation was given by self-defense?
the person attacked, the one making a
defense had no part therein. (People v. RETALIATION - The aggression that was begun by
Eduarte, G.R. No. 72976) the injured party already ceased to exist when the
accused attacked him.
Relatives who can be defended SELF-DEFENSE - The aggression still existed
a. Spouse; when the aggressor was injured by the person
b. Ascendants; defending. (People v. Decena, G.R. No. 107874,
c. Descendants; 1994)
d. Legitimate, natural or adopted brothers Q: What is the doctrine of rational equivalence?
and sisters, or relatives by affinity in the
same degree; and A: Under the doctrine of rational equivalence, a plea
e. Relatives by consanguinity within the of self-defense would prosper if there is a rational
4th civil degree. equivalence between the means of attack by the
unlawful aggressor and the means of defense by the
3. Defense of stranger accused that would characterize the defense as
a. Unlawful aggression; reasonable. The doctrine of rational equivalence

presupposes the consideration not only of the

nature and quality of the weapons used by the Q: Is the Battered Woman Syndrome a defense
defender and the assailant but also of the totality of against criminal liability?
circumstances surrounding the defense vis-a-vis,
the unlawful aggression. (People v. Olarbe, G.R. A: Yes. Women suffering from BWS do not incur
No. 227421) any criminal or civil liability notwithstanding the
absence of any of the elements for justifying
Q: During a fiesta after dancing, the victim circumstances of self-defense under the RPC. (RA
approached X's table and asked who was brave 9262, Sec. 26)
enough while drawing a knife tucked in the
waistband of his pants. X tried to escape by Q: Can BWS be invoked during the tranquil
moving backwards and, while doing so, he got stage?
hold of the victim's right hand. X twisted the
victim's arm, got hold of the knife and then A: Yes, as long as it is proven that the three phases
stabbed the victim several times on the chest. of the cycle of violence have occurred twice, and the
He delivered three (3) successive stabbing syndrome is established (People v. Genosa, G.R.
blows in a quick and swift manner because he No, 135981), further evidence of actual physical
panicked. He ran away immediately and assault (unlawful aggression) at the time of the
surrendered himself to the barangay officials killing is not required. (R.A. 9262, Sec. 26)
and they proceeded to the police station. The
RTC found X guilty of the crime of murder Q: Who are deemed strangers in defense of
qualified by treachery, which was affirmed by strangers?
the CA. X maintains his innocence based on his
plea of self-defense. Was X’s conviction A: A stranger is any person not included in the
correct? enumeration of relatives mentioned in par. 2. Hence,
even a close friend or a distant relative is a stranger
A: YES. A plea of self-defense admits the within the meaning of par. 3. (Reyes, Book I)
commission of the act charged as a crime;
accordingly, the onus probandi falls on the accused b. Exempting Circumstances
to prove that such killing was justified - failure to
discharge which renders the act punishable. Thus, Q: What are exempting circumstances?
to exonerate himself, the accused must establish: (i)
that there was unlawful aggression by the victim; (ii) A: Exempting circumstances (non-imputability) are
that the means employed to prevent or repel such those grounds for exemption from punishment
aggression were reasonable; and (iii) that there was because there is wanting in the agent of the crime
lack of sufficient provocation on his part. Of the any of the conditions which make the act voluntary
three, unlawful aggression is the foremost or negligent. (Reyes, Book I)
requirement; absent such element, self-defense,
whether complete or incomplete, cannot be Q: Differentiate between justifying and
appreciated.
exempting circumstances.
X failed to establish unlawful aggression on the part
JUSTIFYING EXEMPTING
of the victim. Necessarily, the claim of self-defense
of X has no more leg to stand on. (People v. Raytos CIRCUMSTANCES CIRCUMSTANCES
y Espino, G.R. No. 225623, June 7, 2017, J. WHO OR WHAT IS AFFECTED
CAGUIOA) Act Actor
Q: What is the battered woman syndrome?

NATURE OF ACT
A: Battered woman syndrome refers to a Act is considered Act is wrongful but actor
scientifically defined pattern of psychological and legal is not liable
behavioral symptoms found in women living in EXISTENCE OF A CRIME
battering relationships as a result of cumulative Yes, but since
abuse. (R.A. 9262, Sec. 3(c)) None voluntariness is absent
the actor is not liable
The three phases are: (1) tension-building phase, LIABILITY
(2) acute battering incident, and the (3) tranquil, No crime, no criminal, There is a crime, no
loving, or non-violent phase. (People v. Genosa, no criminal liability. criminal, no criminal
G.R. No. 135981, 2004) liability.

psychotic trends despite his calm behavior.

No civil liability There is civil liability According to Dr. X, Z had poor memory recall of
EXCEPT civil liability EXCEPT as to Art. 12(4) the incidents relating to the commission of the
in Art. 11(4) [injury by mere accident] crime and he did not know what he did at the
[avoidance of greater and (7) [lawful cause] time. Z showed not only psychotic trends, but a
evil or injury]: Under full-blown psychosis, and his schizophrenia had
Art. 101, the persons no chance of being completely healed. The RTC
for whose benefit the convicted Renato of the crime of murder,
harm has been emphasizing that the defense did not deny that
prevented shall be Z killed the victim, but failed to present evidence
civilly liable in to support Z's plea of insanity. The CA affirmed
proportion to the the RTC's conviction. Did the lower courts err in
benefit which they convicting Z of the crime charged?
may have received.
A: NO. Accused-appellant's defense of insanity was
Q: Enumerate the exempting circumstances. not proven. For this defense to be successfully
invoked to evade criminal liability, it is necessary
1. An imbecile or an insane person, unless the that insanity must relate to the time immediately
latter has acted during a lucid interval. preceding or simultaneous with the commission of
2. A person 15 years of age and below the offense. The accused must successfully show
3. A person above 15 years of age but below 18 that: (1) he was completely deprived of intelligence;
years of age and (2) such complete deprivation of intelligence
4. Any person who, while performing a lawful act must be manifest at the time or immediately before
with due care, causes an injury by mere the commission of the offense. Having invoked the
accident without fault or intention of causing it. defense of insanity, the accused-appellant is
5. Any person who acts under the compulsion of deemed to have admitted the commission of the
an irresistible force. crime. Accordingly, he has the onus to establish with
6. Any person who acts under the impulse of an certainty that he was completely deprived of
uncontrollable fear of an equal or greater injury. intelligence because of his mental condition or
7. Any person who fails to perform an act required illness.
by law, when prevented by some lawful or
insuperable cause. (Art. 12, RPC) There was no finding whatsoever that the accused-
appellant exhibited any of the myriad symptoms
Q: When is a person considered an imbecile? associated with schizophrenia immediately before
or simultaneous with the hacking of the victim.
A: Mere abnormality of the mental faculties will not (People v. Bacolot y Idlisan, G.R. No. 2339193, Oct.
exclude imputability. The accused must be so 10, 2018, J. CAGUIOA)
insane as to be incapable of entertaining a criminal
intent. He must be deprived of reason and act Q: What happens when the minor acts with or
without the least discernment because there is a without discernment?
complete absence of the power to discern or a total
deprivation of freedom of the will (People v. Pantoja, AGE,
CRIMINAL LIABILITY
G.R. No. 223114, November 29, 2017) DISCERNMENT
15 or under, Exempt from criminal liability
Q: An information was filed charging Z of the regardless of but shalI undergo
crime of murder. Z pleaded insanity as defense. discernment intervention program
His lone witness, Dr. X, testified that she had Above 15 but Exempt from criminal liability
previously examined Z in the year 2005 prior to below 18, without but shalI undergo
his arrest. That was when Z tried to burn himself discernment intervention program
and had to be admitted for his suicidal Above 15 but Subject to criminal liability
tendencies. Dr. X diagnosed Z then as having below 18, with but shall undergo diversion
"auditory hallucinations, depressed mood with discernment program
appropriate effect," and was "able to converse, At least 18 years Subject to criminal liability
but he was not oriented to time and place, he had old
poor memory recall of the incidents, and he had (R.A. No. 9344, Sec. 6, as amended by Sec. 3 of
blank stares." Dr. X again examined Z after his R.A. No. 10630)
arrest. Recent psychological tests led her to
recommend against Z's trial as he still had

Q: What is the difference between intent and

discernment? Q: What are mitigating circumstances?
A: Intent and discernment are two different A: Mitigating circumstances are those which, if
concepts. Intent is a determination to do a certain present in the commission of the crime, do not
thing which comprises the third element of dolo as a entirely free the actor from criminal liability, but
means of committing a felony, freedom and serve only to reduce the penalty. (Reyes, Book I)
intelligence being the other two. On the other hand,
the discernment that constitutes an exception to the Q: Enumerate the mitigating circumstances.
exemption from criminal liability of a minor under
fifteen years of age but over nine, who commits an 1. Incomplete justifying or exempting
act prohibited by law, is his mental capacity to circumstances
understand the difference between right and wrong. 2. When offender is over 15 years of age but
(CICL XXX v. People, G.R. No. 2372334, Aug. 14, under 18 years of age and acted with
2019, J. CAGUIOA) discernment or when he is over 70 years
old
Q: Who is a child in conflict with the law (CICL)? 3. Lack of intention to commit so grave a
wrong as that committed
A: A child alleged as, accused of or adjudged as, 4. Sufficient provocation or threat on the part
having committed an offense under PH laws (Sec. of the offended party
4I, R.A. 9344). BUT only if such child is 15 years old a. The provocation must be sufficient;
or below at the time of the commission of the crime. b. It must originate from the offended
This is conclusive presumption that CICL are party; and
incapable of performing the criminal act due to c. That the provocation must be
complete absence of intelligence, freedom of action, immediate to the act
or intent. (Ortega v. People, G.R. No. 151085, 5. Vindication of a grave offense
2008). a. Victim committed a grave offense
b. The grave offense was committed
Q: How do you determine the child’s age? against the offender or his spouse,
ascendants, descendants, legitimate,
1. Through the birth certificate, baptismal illegitimate or adopted brothers or
certificate, or any other pertinent sisters, or his relatives by affinity within
documents; the same degrees (Art. 13[5], RPC);
2. Based on information from the child c. The offender committed the crime in
himself/herself, testimonies of other proximate vindication of such grave
persons, physical appearance of the child offense (I CAMPANILLA, Reviewer)
and other relevant evidence; (Sec. 7, R.A. 6. Passion or obfuscation
9344) AND/OR a. There be an act, both unlawful and
3. Lack of any contrary evidence showing that sufficient to produce such a condition
the accused’s or his relative’s testimonies (passion or obfuscation) of the mind
are untrue. (Sierra v. People, G.R. No. (People v. Comillo, G.R. No. 186538,
182941, 2009) 2009).
b. Said act which produced the
Q: What offenses are not applicable to children? obfuscation was not far removed from
the commission of the crime by a
1. Prostitution under Art. 202 of the RPC; considerable length of time, during
2. Mendicancy under P .D. No. 1563; and which the perpetrator might recover his
3. Sniffing of rugby under P.D. 1619 (Sec. 58, normal equanimity (Del Poso v.
R.A. 9344) People, G.R. No. 210810, 2016); and
c. The passion or obfuscation must arise
Q: May a child apply for Probation? from lawful sentiments and not out of
revenge (Napone, Jr. v. People, G.R.
A: Yes. The court may, after it shall have convicted No. 193085, 2017).
and sentenced a CICL, and upon application at any 7. Voluntary surrender
time, place the child on probation in lieu of service a. The offender has Not actually been
of his/her sentence taking into account the best arrested;
interest of the child. (Sec. 42, R.A. 9344) b. The offender surrendered himself to a
person in authority or to the latter’s
c. Mitigating Circumstances agent; and

c. The surrender was voluntary (People circumstances of are absent, the case will
v. Placer, G.R. No. 181753, 2013) accident fall under Article 365.
8. Voluntary confession of guilt
a. The offender spontaneously confessed Q: What is the legal effect of the various ages of
his guilt; the offender?
b. The confession of guilt was made in
open court, that is, before the AGE LEGAL EFFECT
competent court that is to try the case 15 and below Exempted from penal
(judicial confession); and responsibility
c. The confession of guilt was made prior Without discernment:
to the presentation of evidence for the Exempting circumstance
prosecution (People v Juan y Leste, Above 15
G.R. No. 152289, 2004) but under 18 With discernment: Penalty is
9. Physical defect of offender (deaf, dumb, reduced by one (1) degree lower
blind, or others) than that imposed
10. Illness of offender diminishing his Minor Sentence suspended
willpower; and delinquent
a. The illness of the offender must under 18
diminish the exercise of his will-power; years of age
and who acted
b. Such illness should not deprive the WITH
offender of consciousness of his acts discernment
(REYES I) Over 18 years Full criminal responsibility
11. Other similar reasons or analogous and below 70
circumstances (RPC, Art 13) Mitigating, no imposition of death
of death penalty, if already
Q: What are the incomplete justifying or 70 years or
imposed, execution of death
exempting circumstances? over
penalty is suspended and
commuted.
A: This mitigating circumstance applies when not all
the requisites are present. If majority of the Q: When is voluntary surrender appreciated?
requisites are present, it is a privileged mitigating
circumstance.
A: In order for it to be appreciated, the same must
be spontaneous in such a manner that it shows the
INCOMPLETE ELEMENTS THAT MUST
interest of the accused to surrender unconditionally
JUSTIFYING BE PRESENT
to the authorities, either because he acknowledged
CIRCUMSTANCES
his guilt or because he wishes to save them the
Incomplete self- Unlawful aggression must trouble and expenses necessarily incurred in his
defense, defense of be present. When 2 of the search and capture. It is no longer mitigating if the
relatives, and requisites mentioned are accused had already been arrested. (People v.
defense of stranger present, it should be Lozano, G.R. No. 137370-71, 2003)
considered as a privileged
mitigating circumstance
referred to in Art. 69.
Incomplete If any of the last 2 d. Aggravating Circumstances
justifying requisites is absent, there
circumstance of is only a mitigating Q: What is a special aggravating circumstance?
avoidance of circumstance.
greater evil or injury A: They arise under special conditions to increase
the penalty for the offense to its maximum period but
Incomplete There is no ordinary not increase the penalty to the next higher degree.
justifying mitigating circumstance Examples are quasi-recidivism and complex crimes.
circumstance of under Art. 13, par. 1, when It does not change the character of the offense
performance of duty the justifying or exempting charged and cannot be offset by an ordinary
circumstance has 2 mitigating circumstance. (Palaganas v. People,
requisites only. G.R. No. 165483, 2006)
Incomplete If the requisites of (1) due
exempting care, and (2) without fault

Q: What are the kinds of aggravating and cannot be offset by mitigating

circumstances? circumstances
a. Quasi-recidivism;
1. Generic: Generally apply to all crimes b. Complex crimes;
a. Advantage taken of public position; c. Taking advantage of public position and
b. Contempt or insult of public authority; membership in an organized/syndicated
c. Crime committed in the dwelling of the crime group; and
offended party; d. Use of unlicensed firearm in homicide or
d. Abuse of confidence or obvious murder.
ungratefulness;
e. Where crime is committed in palace of Note: Error in personae is not a special aggravating
Chief Executive, in his presence, or where nor a mitigating circumstance (Reyes, Book I);
public authorities are engaged, or in a place
for religious worship; Q: Enumerate the aggravating circumstances
f. Nighttime, uninhabited place, or band; and the requisites thereof.
g. Recidivism;
h. Reiteracion or Habituality; 1. Taking advantage of public position
i. Craft, fraud or disguise; a. Public officer must use influence, prestige,
j. Unlawful entry; or ascendancy which his office gives him as
k. Breaking of wall, roof, floor, door or window; a means to attain his desired purpose.
and (Reyes, Book I)
l. Use of persons under 15 years of age; b. The accused abused his office to commit
the crime. (U.S. v. Rodriguez, G.R. No.
2. Specific: Apply only to particular crimes 6344, Mar. 21, 1991)
a. Disregard of rank, age, or sex due the
offended party in crimes against persons 2. Contempt or Insult to Public Authorities
and honor; a. Public authority is engaged in exercise of
b. Advantage of superior strength or means his functions;
be employed to weaken the defense; b. He who is engaged in the exercise of
c. Treachery in crimes against persons; functions is not the person against whom
d. Ignominy in crimes against chastity; the crime is committed;
e. Cruelty in crimes against persons; and c. Offender knows him to be a public authority;
f. Use of unlicensed firearm in the murder or and
homicide committed: this is absorbed in d. His presence has not prevented the
rebellion, insurrection, sedition, and offender from committing the criminal act.
attempted coup d’état; (R.A. No. 8294) (Reyes, Book I)
3. Qualifying: Change the nature of the crime 3. Disregard of rank, age, or sex against
a. Alevosia (treachery) or evident persons or honor
premeditation qualifies the killing of a • To appreciate disregard of rank it must be
person to murder; and shown that the accused deliberately
b. Art. 248, RPC enumerates the qualifying intended to insult the rank of the victim.
aggravating circumstances which qualify (People v. Talay, G.R. No. L-24952, Nov.
the killing of a person to murder; 28, 1980).
• To appreciate disregard of sex, it must be
4. Inherent: Must of necessity accompany the shown that the accuse deliberately
commission of the crime intended to offense or insult the sex of the
a. Evident premeditation in robbery, theft, victim, or showed manifest disrespect to
estafa, adultery and concubinage; her womanhood (People v. Reyes, G.R.
b. Abuse of public office in bribery; No. 153119, April 13, 2004).
c. Breaking of a wall or unlawful entry into a • To appreciate disregard of age, the
house in robbery with the use of force upon accused must deliberately intend to offend
things; or insult the age of the offended party
d. Fraud in estafa; and (People v. Onabia, G.R. No. 128288, April
e. Deceit in simple seduction. 20, 1999)
5. Special: Those which arise under special 4. Dwelling of the offended party
conditions to increase the penalty of the offense a. The offender committed the crime in the
dwelling of the offended party;

b. The offender committed the crime in commission of an offense, it shall be

disregard of the respect which the dwelling deemed to have been committed by a
is entitled; and band. (Reyes, Book I)
c. The offended has not given provocation. • Must all be principals by direct participation
(1976 Bar Exams) who acted together in the execution of the
acts constituting the crime (People v.
5. Abuse of Confidence Lozano, G.R. Nos. 137370-71, September
a. The offended party had trusted the 29, 2003);
offender;
b. The offender abused such trust by 11. Occasion of a conflagration, shipwreck,
committing a crime against the offended earthquake, epidemic, or other calamity or
party; and misfortune
c. The abuse of confidence facilitated the • Refers to the time of the commission of the
commission of the crime. (People v. crime, not the means (Reyes, Book I)
Luchico, G.R. No. 26170, December 6, • The offender must take advantage of the
1926) condition brought about by a calamity or
misfortune to facilitate the commission of
6. Obvious Ungratefulness the crime or to insure impunity.
• The ungratefulness must be obvious i.e. (Campanilla, Criminal Law Review Volume
manifest and clear (Reyes, Book I) 1)
7. (1) In the palace of the chief executive, or 12. Aid of armed men
in his presence, or (2) Where public a. Armed men or persons took part in the
authorities are engaged in the discharge commission of the crime, directly or
of their duties, or (3) In a place dedicated indirectly (People v. Lozano, supra);
to religious worship. b. The accused availed himself of their aid or
• The places mentioned are aggravating per relied upon them when the crime was
se even if no official duties or acts of committed; and
religious worship are being conducted c. There were at least 2 armed men.
there, except for the third, which requires
that official functions are being performed 13. Persons who insure or afford impunity
at the time of the commission of the crime. • Offender purposely sought or consciously
relied upon persons to secure him against
8. Nighttime detection and punishment. Said persons
a. Facilitated the commission of the crime; are not required to be armed. (Campanilla,
b. Especially sought for by the offender to Criminal Law Review Volume 1)
insure the commission of the crime or for
the purpose of impunity; or 14. Recidivism
c. The offender took advantage thereof for the a. The offender is on trial for an offense;
purpose of impunity. (U.S. v. Billedo, 32 b. He was previously convicted by final
Phil. 574, 579) judgment of another crime;
c. Both the first and the second offenses are
embraced in the same title of the Code; and
9. Uninhabited place d. The offender is convicted of the new
• An uninhabited place is one where there offense. (Art. 14[9], RPC)
are no houses at all, a place at a
considerable distance from town, or where 15. Reiteracion or habituality
the houses are scattered at a great a. The accused is on trial for an offense;
distance from each other. b. He previously served sentence for another
• This should not be considered when the offense to which the law attaches an (i)
place where the crime was committed Equal or (ii) Greater penalty or (iii) For two
could be seen and the voice of the or more crimes to which it attaches a lighter
deceased could be heard from a nearby penalty than that for the new offense; and
house. (People vs. Laoto, 52 Phil. 401, 408) c. That he is convicted of the new offense.
(Reyes, Book I)
10. By a Band
• Whenever more than three armed 16. In consideration of a Price, Reward,
malefactors shall have acted together in the Promise

a. There must be 2 or more principals; and • Insidious words or machinations used to

i) The one who gave or offered the price induce the victim to act in a manner which
or promise would enable the offender to carry out his
ii) The one who accepted it design (id)
b. Both are principals.(Reyes, Book I)
21. Employment of Disguise (disfraz)
17. That the crime be committed by means of • Resorting to any device to conceal identity
inundation, fire, poison, explosion, (id)
stranding of a vessel or international
damage thereto, derailment of a 22. Abuse of Superior Strength
locomotive, or by the use of any other • Abuse of superior strength is present
artifice involving great waste and ruin. whenever there is inequality of forces
• Under P.D. No. 1866 as amended by R.A. between the victim and the aggressor,
No. 9516, the use of explosive is not special considering that a situation of superiority of
aggravating circumstance anymore. strength is notoriously advantageous for
However, by means of explosion under the the aggressor and is selected or taken
RPC is an ordinary aggravating advantage of by him in the commission of
circumstance or a qualifying circumstance the crime (People v. Garchitorena, G. R.
in murder. No. 175606, August 28, 2009)
• If the means employed to commit a crime
or to kill a person as expressly mentioned 23. Means employed to Weaken the Defense
in the law such as explosion or poison, it is • The offender employs means that
not required that this circumstance caused materially weakens the resisting power of
great waste and ruin. However, if the the offended party.
means employed to commit a crime or to
kill a person is not expressly mentioned in 24. Treachery (Alevosia)
the law, it is required that the circumstance a. The means of execution employed gave
caused great waste and ruin. (Campanilla, the person attacked no opportunity to
Criminal Law Review Volume 1) defend himself or herself, or retaliate; and
b. The means of execution were deliberately
18. Evident Premeditation or consciously adopted. The mode of attack
• The prosecution must prove: must also be consciously adopted. (People
o Time when the offender v. Canatoy, G. R. No. No. 227195, July 29,
determined to commit the crime; 2019, J. CAGUIOA)
o Act manifestly indicating that the
culprit has clung to his 25. Ignominy
determination; and • A circumstance pertaining to the moral
o Sufficient Lapse of time between order, which adds disgrace and obloquy to
the determination and execution, the material injury caused by the crime.
to allow him to reflect upon the (People v. Cortezano , G.R. No. 123140,
consequences of his act and to Sept. 23, 2003)
allow his conscience to overcome 26. Unlawful entry
the resolution of his will (People v. • There is an unlawful entry when an
Raquipo, G.R. No. 90766, 1990 entrance is effected by a way not intended
• It is indispensable to show concrete for the purpose. (Reyes, Book I)
evidence on how and when the plan to kill
was hatched or how much time had 27. Breaking of Parts of the House (wall, roof,
elapsed before it was carried out. (People floor, door, or window)
v. Agramon, G.R. No. 212156, June 20, • The breaking must be utilized as a means
2018, J. CAGUIOA) to commit the crime. However, it is not
necessary that the offender should have
19. Employment of Craft (astucia) entered the building. What aggravates the
• Involves intellectual trickery and cunning on liability of the offender is the breaking of a
the part of the accused to aid in carrying out part of a building, (Reyes, Book I)
his criminal design and done in order not to
arouse the suspicion of the victim (Reyes, 28. Aid of persons under 15 years of age
Book I)
20. Employment of Fraud (fraude)

29. By means of motor vehicles, airships, or and second felonies. (People v. Jaranilla, G.R. No.
other similar means L-28547, 1974)
• The accused purposely and deliberately
used the motor vehicle in going to the place Q: Is dwelling aggravating in robbery?
of the crime, in carrying away the effects
thereof, and in facilitating their escape. A: It depends. It is aggravating in robbery committed
(People v. Espejo, G.R. No. L-27708,1970) through violence or intimidation of persons only
(People v. Cabato, G.R. No. L- 37400, 1988); it is
30. Cruelty inherent in robbery through force upon things, even
• It must be shown that the accused enjoyed if committed inside an inhabited house. (U.S. v. Cas,
and delighted in making his victim suffer 14 Phil 21)
slowly and gradually, causing him
unnecessary physical or moral pain in the Q: What is the difference between the
consummation of the criminal act. (People aggravating circumstances of by a band and aid
vs. Ong, No. L-34497, Jan. 30, 1975) of armed men or persons who afford impunity?
a. The injury caused be deliberately increased

AID OF ARMED MEN
by causing other wrong; and
OR PERSONS
b. Not necessary for its commission, or BY A BAND
WHO AFFORD
inhumanly increased the victims’ suffering
IMPUNITY
or outraged or scoffed at his person or
corpse. (People vs. Sitchon, G.R. No,
Four armed malefactors Two or more armed
13462, 2002)
take part in its men.
commission.
Q: Distinguish between place where public
authorities are engaged in the discharge of their
They are principals by The armed men are
duties (par. 5), from contempt or insult to public
direct participation. accomplices who take
authorities, (par. 2)
part in minor capacity,
directly or indirectly.
Par. 5 Par. 2
In both, the public authorities are in the
(Reyes, Book I)
performance of their duties.
The public authorities The public authorities Q: When is “aid of armed men” absorbed in “by
who are in the are performing their a band,” and when can it be taken separately as
performance of their duties outside of their another aggravating circumstance?
duties must be in their office.
office
A: When the offenders are more than three, all
He may be the offended the public authority
armed, and they actively cooperated in the
party. should not be the
commission of the crime, “The aid of armed men” is
offended part
absorbed in “by the band.” (People vs. Piring, 63
(U.S. vs. Baluyot, G.R. No. L-14476,1919)
Phil. 548)
But when the offender secured the services of
Q: What is the effect of pardon on the
armed men to commit the crime, that offender
appreciation of recidivism?
committed the crime with the aid of armed men.
(People vs. Ilane, G.R. No. 45902, 1938)
A: A pardon should not be an impediment to the
consideration of recidivism as an aggravating Q: Against whom can the aggravating
circumstance for a pardon only produces the circumstance of price, reward, or promise
extinction of the penalty, but not personal effects of appreciated?
the record of the conviction. (U.S. v. Sotelo, G.R.
No. L-9791, 1914)
A: This circumstance aggravates not only the
criminal liability of the receiver of the price, reward,
Q: How far apart must the two crimes be for
or promise but also the criminal liability of the one
recidivism to be considered? giving the offer. As all the defendants contributed
toward the attendance of this circumstance, it
A: There is no limit. Recidivism must be taken into should affect each and all of them. (People v.
account as an aggravating circumstance no matter Maharaja, G.R. No. 13312, 1918)
how many years have intervened between the first

attack is not sufficient to hold that treachery is

Q: When is evident premeditation not present, where the mode adopted by the aggressor
aggravating? does not positively tend to prove that they thereby
knowingly intended to insure the accomplishment of
A: In the case of implied conspiracy, evident their criminal purpose without any risk to themselves
premeditation may not be appreciated in the arising from the defense that the victim might offer.
absence of proof as to how and when the plan to kill Specifically, it must clearly appear that the method
the victim was hatched or what time elapsed before of assault adopted by the aggressor was
it was carried out, so that it cannot be determined if deliberately chosen with a view to accomplishing the
the accused had “sufficient time between its act without risk to the aggressor. (Arbas Recto v.
inception and its fulfillment dispassionately to People, G.R. No. 236461, Dec. 5, 2018, J.
consider and accept the consequences. (People v. CAGUIOA)
Manansala, G.R. No. 88752, 1992)
Q: What differentiates cruelty from ignominy?
Even if all the elements of evident premeditation
were present, it still cannot be appreciated if the A: Cruelty adds insult to the injury, pertaining to the
actual victim is different from the intended one. physical suffering of the victim. Ignominy refers to
(People v. Barros, G.R. Nos. 10107-08, 1995) the moral effects of a crime, pertaining to the moral
order, whether or not the victim is dead or alive.
Q: Is treachery always present, as long as the
attack was “sudden," "unexpected," and e. Alternative Circumstances
"without any warning or provocation?
Q: What are Alternative Circumstances?
A: NO. It is error to conclude that the killing was
attended by the qualifying circumstance of treachery A: Those that must be taken into consideration as
simply because the attack was "sudden," aggravating or mitigating according to the nature
"unexpected," and "without any warning or and effects of the crime and the other conditions
provocation." It does not always follow that because attending its commission.
the attack is sudden and unexpected, it is tainted
with treachery. (People v. Pilpa v. Dipaz, G.R. No. Q: What are the three kinds of Alternative
225336, Sept. 5, 2018, J. CAGUIOA) Circumstances?
Q: An Information for Murder was filed against A a. Relationship;

for the death of B. A alleged that the prosecution b. Intoxication; and
was able to show that the crime charged should c. Degree of instruction and education of the
be Homicide only and not Murder. He pointed offender.
out that C (son of B), who was 5 years old at the
time of the incident, testified that B was hit by Q: When are they considered as mitigating or
the bottle during a quarrel over money. Citing aggravating?
People v. Rivera, wherein the common-law wife
was killed by the common-law husband during a
RELATIONSHIP
heated argument, A argued that the case
established by the prosecution was thus merely
Mitigating Aggravating
Homicide due to the absence of the qualifying
circumstance of treachery. Was the killing
In crimes against In crimes against
attended by treachery?
property (Reyes, Book persons in cases where
I, p 489, Art. 332, RPC the offended party is a
A: NO. The evidence of the prosecution could, at
by analogy) relative of a higher
best, only convict him of Homicide and not Murder.
degree than the
The testimony of the main prosecution witness, C,
offender, or when the
was to the effect that his mother and the accused
offender and the
had an argument prior to her death.
offended party are
relatives of the same
Jurisprudence provides that treachery cannot be
level. (Reyes, Book I, p
appreciated if the accused did not make any
490)
preparation to kill the deceased in such manner as
to insure the commission of the killing or to make it
In less serious or slight In serious physical
impossible or difficult for the person attacked to
retaliate or defend himself. Mere suddenness of the

Q: What are the different kinds of absolutory

physical injuries, injuries, if the offended
causes?
relationship is party is a descendant of
mitigating. (Art. 265, the offender,
1. Spontaneous desistance during attempted
266 RPC) relationship is an
stage (Art.6) and no other crime is
aggravating
circumstance. (Art. committed;
263, RPC) 2. Light felony is only attempted or frustrated
and is not against person or property
(Art.7);
Note: Relationship is
3. Accessory is not liable in light felonies (Art.
not considered if it is an
16);
element of the offense.
4. Accessory is a relative of the principal
(Art.20) unless crime became a means to
INTOXICATION
gain (Art. 19, par. 1);
5. Legal grounds for arbitrary detention
(Art.124);
6. Slight or less serious physical injuries
If (1) the intoxication is If (1) the intoxication is
inflicted by person who surprised his
not habitual, or (2) if habitual, or (2) if it is
spouse or daughter in the act of sexual
intoxication is not intentional (subsequent
intercourse with another person (Art. 247);
subsequent to the plan to the plan to commit a
7. Legal grounds for trespass (Art.280);
to commit a felony. felony). (People v.
8. Mischief is committed against a relative
Camano, G.R. No. L-
(Art. 332);
36662-63, 1982)
9. Marriage of the offender with offended
party when the crime committed is rape
Note: There is a
(Art. 266-C), abduction, seduction, or acts
presumption that
of lasciviousness (Art. 344); and
intoxication is
10. Instigation. (Reyes, Book I, p. 254)
accidental.
Q: Differentiate between entrapment and
DEGREE OF INSTRUCTION OR EDUCATION
instigation.
OF THE OFFENDER
ENTRAPMENT INSTIGATION
The ways and means Instigator practically
Low degree of High degree of are resorted to for the induces the would-be
instruction and instruction and purpose of trapping accused into the
education or lack of it education is and capturing the commission of the
is generally mitigating. aggravating when the lawbreaker in the offense and himself
(People v. Baltazar, offender avails himself execution of his becomes a co- principal;
G.R. No. L- 30557, of his learning in criminal plan;
1980) committing the crime. NOT a bar to Accused will be
(Reyes, Book I, p. 503) accused’s acquitted; and
prosecution and
conviction; and
f. Absolutory Cause NOT an absolutory Absolutory cause
cause.
Q: What are absolutory causes?
—end of topic—
A: Those where the act committed is a crime but for
reasons of public policy and sentiment there is no
penalty imposed. 3. PERSONS LIABLE AND DEGREE
OF PARTICIPATION
Absolutory causes are neither justifying nor
exempting circumstances but nonetheless similarly
results in no criminal liability on the actor, not
a. Principals, Accomplices, and
because they are justified (Art. 11, RPC) nor exempt Accessories
(Art. 12, RPC), but because of public policy.
Q: What are the three kinds of principals?

KNOWLEDGE
1. Principals by direct participation – Has knowledge of the Has knowledge of the
Those who personally take part in the criminal design of the criminal design and
execution of the act constituting the crime. principal and merely carries/executes it
(Reyes, Book I) concurs with the
criminal purpose
2. Principals by Inducement – Those who:
a. Directly force another to commit a crime Q: What is the difference between an accomplice
i. Using irresistible force; or and a principle by indispensable cooperation?
ii. By causing uncontrollable fear;
b. Directly induce another to commit a PRINCIPAL BY
crime ACCOMPLICE INDISPENSABLE
i. By giving price, or offering reward or COOPERATION
promise; or NECESSITY OF PARTICIPATION
ii. By using words of command; Participation is not Participation is
indispensable and indispensable; and
3. Principal by indispensable cooperation DEGREE OF PARTICIPATION
– Those who: Cooperates in the Participates in the
a. Participate in the criminal resolution, execution of the offense criminal resolution, in
that is, there is either anterior by previous or such a way that there is
conspiracy or unity of criminal purpose simultaneous acts, with either anterior
and intention immediately before the the intention of conspiracy or unity of
commission of the crime charged. supplying material or criminal purpose and
b. Cooperate in the commission of the moral aid in the intention immediately
offense by performing Another act, execution of the crime before the commission
without which it would not have been in an efficacious way of the crime charged
accomplished.
NOTE:
Q: How do accessories take part in the
a. If participation is dispensable,
commission of the crime?
accused is only an accomplice, not
a principal; and
A: An accessory does not participate in the criminal
b. If cooperation is necessary in the
design, nor cooperate in the commission of the
execution of the offense, the
felony, but, with knowledge of the commission of the
accused is considered as a
crime, he subsequently takes part in 3 ways:
principal by direct participation.
1. By profiting themselves or assisting the offender
Q: What is the difference between an accomplice
to profit by the effects of the crime (Art. 19, Par.
and principal?
1, RPC)
ACCOMPLICE PRINCIPAL
a. Profiting themselves by the effects of
PARTICIPATION
the crime
Does not take direct Either takes direct part b. Assisting the offender to profit by the
part in the commission in the commission of the effects of the crime
of the act; does not act; induces, or forces 2. By concealing or destroying the body of the
force or induce others another to commit it; or crime, or the effects or instruments thereof, in
to commit it; or does cooperates in the order to prevent its discovery (Art. 19, Par. 2,
not cooperate in the commission of the crime RPC)
commission of the by another act, without 3. By harboring, concealing, or assisting in the
crime by another act, which it would not have escape of the principals of the crime, provided
without which it would been accomplished the accessory acts with abuse of his public
not have been functions or whenever the author of the crime is
accomplished, yet guilty of treason, parricide, murder, or an
cooperates in the attempt to take the life of the chief executive, or
execution of the act by is known to be habitually guilty of some other
previous or crime (Art. 19, Par. 3, RPC)
simultaneous means a. Public officers, who harbor, conceal or
assist in the escape of the principal of
any crime (not light felony) with abuse
of his public functions

b. Private persons, who harbor, conceal 2. Rebellion;

or assist in the escape of the author of 3. Insurrection;
the crime – guilty of treason, parricide, 4. Coup d’etat;
murder, or an attempt against the life of 5. Sedition;
the President, or who is known to be 6. Monopolies and combinations in restraint of
habitually guilty of some other crime. trade;
7. Espionage;
Q: Is conviction of an accessory possible, even 8. Highway robbery;
if the principal is acquitted? 9. Illegal association;
10. Selected acts committed under the
A: Conviction of an accessory is possible Comprehensive Dangerous Drugs Act;
notwithstanding the acquittal of the principal, if the 11. Arson; and
crime was in fact committed, but the principal was 12. Terrorism under the Human Security Act of
not held criminally liable, because of an exempting 2007 (now the Anti-Terrorism Act of 2020)
circumstance (Art. 12, RPC), such as insanity or
minority. In exempting circumstances, there is a Q: What are the rules on the liability of
crime committed. Hence, there is a basis for conspirators?
convicting the accessory. (Reyes, Book I)
General Rule: When conspiracy as a manner of
Even if the principal is still unknown or at large, the incurring criminal liability is established, all who
accessory may be held responsible provided the participated therein, irrespective of the quantity or
requisites prescribed by law for the existence of the quality of his participation is liable equally, whether
crime are present and that someone committed it. conspiracy is pre-planned or instantaneous.
(Id)
Exception: Unless one or some of the conspirators
Q: When are accessories exempt from criminal committed some other crime which is not part of the
liability? intended crime.
A: As a general rule, the accessory is exempt from Exception to the exception: When the act
criminal liability when the principal is his: constitutes a “single indivisible offense.”
1. Spouse;
2. Ascendant; Q: How is conspiracy proven?
3. Descendant; or
4. Legitimate, natural or adopted brother, sister, or A: While it is true that the elements of conspiracy
Relative by affinity within the same degree. must be proved by the same kind of proof (proof
beyond reasonable doubt) necessary to establish
the physical acts constituting the crime itself, this
As an exception, the accessory is NOT EXEMPT
is not to say that direct proof of such conspiracy is
from criminal liability even if the principal is related
always required. The existence of conspiracy
to him, if such accessory:
need not, at all times, be established by direct
a. Profited by the effects of the crime;
evidence. Nor is it necessary to prove prior
b. Assisted the offender to profit by the effects of agreement between the accused to commit the
the crime; and
crime charged. Indeed, conspiracy is very rarely
proved by direct evidence of an explicit agreement
b. Conspiracy and Proposal to commit the crime. Thus, the rule is well-settled
that conspiracy may be inferred from the conduct
Q: When are conspiracy and proposal to commit of the accused before, during and after the
felony punishable? commission of the crime, where such conduct
reasonably shows community of criminal purpose
A: Conspiracy and proposal to commit felony are or design. (People v. Solar y Dumbrique, G.R. No.
not punishable, except in cases in which the law 225595, J. CAGUIOA)
specially provides a penalty therefor, such as:
1. Treason;
c. Multiple Offenders
Q: Distinguish between the following:

a. Recidivism (Art. 14, par. 9);

b. Reiteracion or habituality (Art. 14, par. 10);
c. Multi-recidivism or habitual delinquency (Art. 62, par. 5); and
d. Quasi-recidivism (Art. 160)
RECIDIVISM HABITUALITY or HABITUAL DELINQUENCY QUASI-RECIDIVISM

(Art. 14, par. 9, REITERACION (Art. 62, par. 5, RPC) (Art. 160, RPC)
RPC) (Art. 14, par. 10,
RPC)
DEFINITION
A recidivist is one There is reiteracion There is habitual delinquency Any person, who shall
who, at the time of when the offender has when a person, within a period of commit a felony after
his trial for one crime, been previously 10 years from the date of his having been convicted by
shall have been punished for an release or last conviction of the final judgment, before
previously convicted offense to which the crimes of (1) serious or less beginning to serve such
by final judgment of law attaches an equal serious physical injuries, (2) sentence, or while serving
another crime or greater penalty or robbery, (3) theft, (4) estafa or (5) the same, shall be
embraced in the for two or more crimes falsification, is found guilty of any considered as a quasi-
same title of the to which it attaches a of said crimes a third time or recidivist. (Art. 160, RPC)
RPC. (People v. lighter penalty. (Art. oftener. (Art. 62, RPC)
Lagarto, G.R. No. 14, par. 10, RPC)
65833) In habitual delinquency, the
offender is either a recidivist or
one who has been previously
punished for two or more
offenses. He shall suffer an
additional penalty for being a
habitual delinquent. (Reyes,
Book I)
KIND OF AGGRAVATING CIRCUMSTANCE

Generic aggravating Generic aggravating Extraordinary aggravating Special aggravating
circumstance circumstance circumstance circumstance
REQUISITES
1. The offender is 1. The accused is 1. The offender had been 1. The offender
on trial for an on trial for an convicted of any of the committed a felony
offense; offense; crimes of serious or less after having been
2. He was 2. He previously serious physical injuries, convicted by final
previously served sentence robbery, theft, estafa or judgment; and
convicted by for another falsification; 2. The felony was
final judgment of offense to which 2. After that conviction or after committed before
another crime; the law attaches serving his sentence, and beginning to serve
3. Both the first and an equal or within 10 years from his first such sentence, or
the second greater penalty, conviction or release, he while serving the
offenses are or for 2 or more again commits any of said same.
embraced in the crimes to which it crimes for the second time;
same title of the attaches lighter and
code; and penalty than that 3. After his conviction of, or
4. The offender is for the new after service sentence for,
convicted of the offense; and the second offense, and
new offense. 3. He is convicted of within 10 years from his last
the new offense. conviction or last release for
said second offense, he
again committed any of said
crimes and also convicted,
the third time or oftener.
CRIMES COMMITTED

Crimes involved Involves any crime. Crimes are specified (serious or Involves any crime.
must be embraced in less serious physical injuries, Second offense must be a
the same title of the robbery, theft, estafa, or felony, while the first
Code. falsification). offense need not be.
WHEN THE CRIMES ARE COMMITTED
Offender is on trial Offender previously After conviction and serving out Offender has been
for an offense and is served sentence for his sentence, offender is convicted of an offense
subsequently another offense to convicted again of any of the and commits another
convicted of the new which the law second crimes and that after felony before or during
crime. attaches an equal or conviction and serving out his serving sentence.
greater penalty, or for sentence for the second crime,
Recidivism must be two or more crimes to offender again committed and
taken into account which it attaches was convicted within 10 years
no matter how many lighter penalty than from his last sentence or
years have that for the new conviction of any of the crimes
intervened between offense. specified the third time or oftener.
the first and second
felonies.(People v. It is necessary that he committed
Colocar, G.R. No. the second crime after his
40871) conviction of, or after service of
sentence for, the first crime; that
he committed the third crime
after his conviction of, or after
service of sentence for, the
second crime; the fourth crime,
after his conviction of, or after
service of sentence for, the third
crime, etc. (People vs. Santiago,
G.R. No. L-45367)
Q: What are the effects of habitual

delinquency? 4. PENALTIES
a. The law imposes an additional penalty based a. Imposable Penalties

on the criminal propensity of the accused apart
from that provided by law for the last crime for b. Classification
which he is found guilty. Habitual delinquency
is not, however, a crime in itself; it is only a Q: What are the classifications of penalties
factor in determining the total penalty. according to their gravity?
(Campanilla, Criminal Law Reviewer Volume I) A: Art. 25, RPC classifies penalties into:
b. An accused who is a habitual delinquent will 1. Principal penalties – Those expressly
not benefit from a favorable retroactive imposed by the court in the judgment of
application of a penal law. (Art. 22, RPC) conviction.
c. In case of the commission of another crime
during service of penalty, a habitual delinquent a. Capital Punishment
shall not be pardoned at the age of 70 years i. Death (now prohibited under
even if he already served out his original R.A. No. 9346).
sentence. (Art. 160, RPC). b. Afflictive Penalties
d. A habitual delinquent will not be entitled to the i. Reclusion perpetua;
1/2 deduction from term of imprisonment under ii. Reclusion temporal;
Art. 29. iii. Perpetual or temporary
e. The Indeterminate Sentence Law shall not absolute disqualification;
apply to those who are habitual delinquents. iv. Perpetual or temporary special
(Sec. 2, Act No. 4103) disqualification; and
v. Prision mayor.
—end of topic— c. Correctional Penalties
i. Prision correccional;

ii. Arresto mayor; Q: Distinguish between reclusion perpetua and

iii. Suspension; and life imprisonment
iv. Destierro.
d. Light Penalties RECLUSION LIFE
i. Arresto menor; and PERPETUA IMPRISONMENT
ii. Public censure.
e. Penalties Common to the 3 preceding The RPC does not
classes: prescribe the penalty of
i. Fine; and life imprisonment for any
ii. Bond to keep the peace. of the felonies therein
defined, that penalty
2. Accessory penalties – Those that are being invariably
deemed included in the imposition of the imposed for serious
principal penalties. offenses penalized not
a. Perpetual or temporary absolute by the RPC, but by
disqualification, special law.
b. Perpetual or temporary special Reclusion perpetua Does not appear to have
disqualification, entails imprisonment for any definite extent or
c. Suspension from public office, the right at least thirty (30) years duration.
to vote and be voted for, the profession after which the convict
or calling. becomes eligible for
d. Civil interdiction, pardon
e. Indemnification, Carries with it accessory Does not carry with it
f. Forfeiture or confiscation of penalties any accessory penalty
instruments and proceeds of the
offense, d. Application and Graduation of
g. Payment of costs. (Art. 25, RPC) Penalties
i. INDETERMINATE SENTENCE LAW

c. Duration And Effect (ISL)
Q: What is the duration of the different kinds of Q: How is the Indeterminate Sentence Law
penalties? Applied?
PENALTY DURATION A:The court must, instead of a single fixed penalty,

Reclusion 20 years and 1 day to 40 years determine two penalties, referred to in the
Perpetua Indeterminate Sentence Act as the "MAXIMUM" and
Reclusion 12 years and 1 day to 20 years "MINIMUM" terms. (Reyes, Book I)
Temporal
Prision Mayor 6 years and 1 day to 12 years, The prisoner must be sentenced to imprisonment for
and temporary except when the penalty of a period which is not more than the maximum and
disqualification disqualification is imposed as not less than the minimum.
an accessory penalty, in which
case, its duration shall be that The prisoner must serve the minimum before he is
of the principal penalty eligible for parole.
Prision 6 months and 1 day to 6 years,
correccional, except when suspension is The law does not impair the powers of the Chief
suspension, and imposed as an accessory Executive under the Administrative Code (Sec. 1).
destierro penalty, in which case, its
duration shall be that of the Q: When is the benefit of the Indeterminate
principal penalty Sentence Law not applicable?
Arresto mayor 1 month and 1 day to 6 months
Arresto menor 1 day to 30 days 1. To persons convicted of offenses punished with
Bond to keep the Such period of time as the death penalty or life imprisonment;
peace court may determine 2. To those convicted of treason, conspiracy or
proposal to commit treason;
3. To those convicted of misprision of treason,
rebellion, sedition or espionage;

4. To those convicted of piracy; Arresto Suspension of the right to hold

5. To those who are habitual delinquents; Mayor office and the right of suffrage
6. To those who shall have escaped from during the term of the sentence.
confinement or evaded sentence; Destierro No accessory penalties
7. To those who having been granted conditional
pardon by the Chief Executive shall have (Arts. 40-45, RPC)
violated the terms thereof;
8. To those whose maximum term of f. Subsidiary Imprisonment
imprisonment does not exceed 1 year; nor
9. To those already sentenced by final judgment Q: What is subsidiary imprisonment?
at the time of approval of this Act. (Sec. 2, ISL)
A: Under Art. 39 of the RPC as amended by R.A.
Q: How is the ISL applied in Special Laws? No. 10159, if the convict has no property with which
to meet the fine, he shall be subject to a subsidiary
A: If a person is convicted of illegal possession of personal liability at the rate of 1 day for each amount
firearms punishable by 1 year and 1 day to 8 years equivalent to the highest minimum wage rate
of imprisonment, the maximum term shall not prevailing in the Philippines at the time of the
exceed 8 years as fixed by law. The minimum term rendition of judgment of conviction by the trial court.
shall not be less than the minimum period of 1 year
and 1 day as prescribed by law. Subsidiary imprisonment is a penalty since under
Art. 39, it is imposed upon the accused and served
e. Accessory Penalties by him in lieu of the fine which he fails to pay on
account of insolvency.
Q: What are the penalties in which accessory
penalties are inherent? Q: What are the rules as to subsidiary
imprisonment ?
PENALTY ACCESSORY PENALTIES
Death, when a. Perpetual absolute PENALTY SUBSIDIARY IMPRISONMENT
not executed disqualification; and IMPOSED
by reason of b. Civil interdiction for 30 years, if Fine only Subsidiary imprisonment shall
commutation not expressly remitted in the not exceed 6 months, if the
or pardon pardon. culprit shall have been
Reclusion a. Civil interdiction for life or prosecuted for a grave or less
perpetua and during the sentence; and grave felony, and shall not
reclusion exceed 15 days, if for a light
temporal b. Perpetual absolute felony. (Art. 39, par. 2)
disqualification, unless Prision He shall remain under
expressly remitted in the correcional or confinement until his fine is
pardon of the principal arresto and fine satisfied, but his subsidiary
penalty. imprisonment shall not exceed
Prision a. Temporary absolute 1/3 of the term of the sentence,
mayor disqualification; and and in no case shall it continue
for more than 1 year. (Art. 39,
b. Perpetual special par. 1)
disqualification from suffrage,
unless expressly remitted in Note: Fraction or part of a day,
the pardon of the principal not counted.
penalty. Higher than No subsidiary imprisonment
Prision a. Suspension from public office, prision shall be imposed (Art. 39, par. 3)
correccional profession or calling, and correcional (6
years of
b. Perpetual special imprisonment)
disqualification from suffrage, Penalty Subsidiary penalty shall consist
if the duration of imprisonment imposed is not in the same deprivations as
exceeds 18 months, unless to be executed those of the principal penalty,
expressly remitted in the by under the same rules above.
pardon of the principal confinement,
penalty.
BACK TO TOC PAGE 31 OF 209

but of fixed
duration d. REPUBLIC ACT NO. 10592
In case the He shall pay the fine, (AMENDMENTS TO ARTICLES
financial notwithstanding the fact that the 29, 94, 97, 98, AND 99 OF THE
circumstances convict suffered subsidiary RPC)
of the convict personal liability therefor
should improve Q: What is the rule on preventive imprisonment?
Q: When is subsidiary imprisonment A: Offenders or accused who have undergone
inapplicable? preventive imprisonment shall be credited in the
service of their sentence consisting of deprivation of
A: liberty, with the full time during which they have
1. When the penalty imposed is higher than undergone preventive imprisonment if the detention
prision correcional. prisoner agrees voluntarily in writing after being
2. For failure to pay the reparation of the informed of the effects thereof and with the
damage caused, indemnification of the assistance of counsel to abide by the same
consequential damages, and the cost of the disciplinary rules imposed upon convicted
proceedings. prisoners. (Art. 29, RPC, as amended by R.A. No.
3. When the penalty imposed is a fine and a 10592)
penalty not to be executed by confinement
in a penal institution and which has no fixed If the detention prisoner does not agree to abide by
duration. the same disciplinary rules imposed upon convicted
prisoners, he shall do so in writing with the
—end of topic— assistance of a counsel and shall be credited in the
service of his sentence with 4/5 of the time during
which he has undergone preventive imprisonment.
5. EXECUTION AND SERVICE
Whenever an accused has undergone preventive
imprisonment for a period equal to the possible
a. Three-Fold Rule maximum imprisonment of the offense charged to
which he may be sentenced and his case is not yet
Q: What is the Three-Fold Rule? terminated, he shall be released immediately
without prejudice to the continuation of the trial
A: If an accused has to serve more than 3 thereof or the proceeding on appeal, if the same is
sentences, he cannot be sentenced to more than 3 under review.
times the most severe penalty that may be imposed
on him for the various crimes he might have Q: Does preventive imprisonment apply to those
committed. sentenced to reclusion perpetua?
A: The crediting of preventive imprisonment shall
Art. 70 provides that the maximum duration of the likewise extend to those who have been sentenced
convict's sentence shall not be more than three-fold to reclusion perpetua. Credit for preventive
the length of time corresponding to the most severe imprisonment for the penalty of reclusion perpetua
of the penalties imposed upon him. No other penalty shall be deducted from 30 years.
to which he may be liable shall be inflicted after the
sum total of those imposed equals the said Q: When is preventive imprisonment
maximum period. Such maximum period shall in no unavailable?
case exceed 40 years.
1. When they are recidivists, or have been
The three-fold rule applies although the penalties
convicted previously twice or more times of any
were imposed for different crimes, at different times, crime; and
and under separate informations. (Torres v.
2. When upon being summoned for the execution
Superintendent, G.R. No. 40373)
of their sentence, they have failed to surrender
voluntarily.
b. PROBATION LAW
(P.D. NO. 968, AS AMENDED) Q: How is criminal liability partially
extinguished?
c. JUVENILE JUSTICE AND
WELFARE ACT OF 2006 1. By conditional pardon;

2. By commutation of the sentence; and A: After promulgation of judgment or order where

3. For good conduct allowances which the culprit the imposable penalty for the crime or offense
may earn while he is undergoing preventive committed by the accused is arresto menor or
imprisonment or serving his sentence. (Art. 94, arresto mayor, it shall be the court's duty to inform
RPC, as amended by R.A. No. 10592) the accused of and announce in open court his/her
options within 15 calendar days from promulgation:
e. COMMUNITY SERVICE ACT a. file an appeal;
(R.A. NO. 11362; A.M. NO. 20- b. apply for probation as provided by law; or
06-14-SC) c. apply that the penalty be served by rendering
community service in the place where the crime
Q: When can the court impose community was committed. (A.M. NO. 20-06-14-SC)
service, in lieu of service in jail? It shall further be explained to the accused that if
he/she chooses to appeal the conviction, such
A: The court in the discretion may, in lieu of service resort thereto bars any application for community
service or probation
in jail, require that the penalties of arresto menor
and arresto mayor may be served by the defendant
by rendering community service in the place where Q: How many times can the privilege of
the crime was committed, under such terms as the rendering community service be availed of?
court shall determine, taking into consideration the
gravity of offense and the circumstances of the A: In no case shall the benefit of the Community
case, which shall be under the supervision of a Service Act be given to the accused more than
probation officer. (Sec. 3, R.A. No. 11362, amending once. (A.M. NO. 20-06-14-SC)
Art. 88a of Act No. 3815)
Q: What is the duration of community service?
The court will prepare an order imposing the
community service, specifying the number of hours A: The period for the community service to be
rendered should not be more than the maximum
to be worked and the period within which to
complete the service. The order is then referred to sentenced imposed by law, but not less than 1/3
the assigned probation officer who shall have thereof. (A.M. NO. 20-06-14-SC)
responsibility of the defendant. (Id)
Q: May the accused apply for probation, even
The imposition of the penalty of community service
is still within the discretion of the Court and should after applying for community service?
not be taken as an unbridled license to commit
A: In the event the court denies the application for
minor offenses. It is merely a privilege since the
offended cannot choose it over imprisonment as a community service, and the period to appeal has not
matter of right. In requiring community service, the yet lapsed, the accused may still choose to appeal
said judgment or apply for probation.
Court shall consider the welfare of the society and
the reasonable probability that the person
sentenced shall not violate the law while rendering An accused who has applied and was granted
probation in a previous case is not disqualified to
the service. (Realiza v. People, G.R. No. 228745)
apply for community service in a subsequent case.
Q: What are the consequences if the defendant (A.M. NO. 20-06-14-SC)
violates the terms of community service?
—end of topic—
A: If the defendant violates the terms of the
community service, the court shall order his/her re-
arrest and the defendant shall serve the full term of
the penalty, as the case may be, in jail, or in the 6. EXTINCTION OF CRIMINAL
house of the defendant as provided under Art. 88. LIABILITY
However, if the defendant has fully complied with
the terms of the community service, the court shall Q: When is there total extinction of criminal
order the release of the defendant unless detained liabilities?
for some other offenses. (Id)
1. Death of the convict whether before or after
Q: What are the options of the accused, after final judgment (Art. 89)
promulgation of judgment? 2. Service of sentence
3. Amnesty
4. Absolute pardon

5. Prescription of the crime (Art. 90) on a possible privation of right by

6. Prescription of the penalty prescription. (People v. Layag, G.R. No.
7. Forfeiture of right of government to execute 214875, 2016)
final sentence
8. Marriage of the offended woman Q: How is the prescription of offenses
computed?
Q: What is the effect of an offender's death to
criminal and civil liabilities? A: The period of prescription commences to run
from the day on which the crime is discovered by the
1. Before final judgment: His death offended party, the authorities or their agents. (Art.
extinguishes both his criminal and civil 91, RPC)
liabilities. (People v. Alison, No. L-20612,
1972) When the last day falls on a Sunday or legal holiday,
2. While the case is on appeal: Death of the the information can no longer be filed on the next
accused pending appeal of his conviction day as the crime has already prescribed.
extinguishes his criminal liability as well as (Yapdiangco v Buencamino, G.R. No. L-
the civil liability based solely thereon. 28841,1983)
(People v. Bayotas, GR No. 102007, 1994)
3. After final judgment: Criminal liability is It is interrupted by the filing of the complaint or
totally extinguished, but pecuniary information and commences to run again when the
penalties are not extinguished. (Art. 89, proceedings terminate without the accused being
RPC) convicted or acquitted or unjustifiably stopped for
any reason not imputable to him. (Art. 91, RPC)
Q: One of the accused died pending appeal and
before promulgation of the final judgment. Is the PENALTY OF PRESCRIPTIVE PERIOD
personal liability extinguished both as to OFFENSE
criminal liability and civil liability? Death, reclusion 20 years
perpetua, reclusion
A: Yes, the personal liability both as criminal and temporal
civil liability are both extinguished since the death Afflictive penalties 15 years
occurred before final judgment. The death of the Correctional penalty 10 years
accused pending appeal of his conviction (except arresto
extinguishes his criminal liability as well as his civil mayor)
liability ex delicto. Accordingly, the criminal case Arresto mayor 5 years
against should be dismissed. (People v. Alvin
Cenido y Picones and Remedios Contreras y Cruz, Q: When is there partial extinction of criminal
G.R. No. 210801, 2016) liability?
Q: What are the effects of the death of an a. Conditional pardon (Art. 95, RPC)
accused pending appeal on his liabilities? Conditional pardon refers to the exemption
of an individual, with certain limits or
A: The effects of the death of an accused pending conditions, from the punishment which the
appeal on his liabilities are as follows: law inflicts for the offense he had committed
1. Death terminates his criminal liability and resulting in the partial extinction of his
only the civil liability directly arising from criminal liability (Sec. 2[p], Revised Rules
and based solely on the offense committed; and Regulations of the Board of Pardons
2. Claim for civil liability survives and Parole).
notwithstanding death, if the same may
also be predicated on a source of obligation The usual condition imposed upon the
other than delict (i.e. laws, contracts, quasi- convict in conditional pardon is that he shall
contracts, quasi-delicts); not again violate any of the penal laws of
3. Where the civil liability survives, an action the Philippines.
for recovery may be pursued but only by
way of filing a separate civil action enforced b. Commutation of sentence (Art. 95, RPC)
either against the executor/administrator or Commutation of sentence refers to the
the estate of the accused; and reduction of the duration of a prison
4. The statute of limitations on the civil liability sentence of a prisoner. (Sec. 2[po],
is deemed interrupted during the pendency Revised Rules and Regulations of the
of the criminal case, to avoid apprehension Board of Pardons and Parole)

Q: What is the rule on special time allowance for

c. Good conduct allowances which the loyalty?
culprit may earn while he is serving his
sentence (Art. 95, RPC) A: A deduction of one fifth (1/5) of the period of
Allowances for good conduct are sentence is granted to any prisoner who, having
deductions from the term of the sentence evaded his prevented imprisonment or the service
for good behavior. (Art. 97, RPC) of his sentence, under the following circumstances:
a. On the occasion of disorder resulting from a
d. Parole (Reyes, Book I) conflagration, earthquake, explosion, or similar
Parole refers to the conditional release of catastrophe, or
an offender from a correctional institution b. During a mutiny in which he has not
after he has served the minimum of his participated — gives himself up to the
prison sentence. It consists in the authorities within 48 hours following the
suspension of the sentence of a convict issuance of a proclamation announcing the
after serving the minimum of the passing away of the calamity or catastrophe.
indeterminate penalty without the grant of A deduction of two-fifths (2/5) of the period of his
pardon. sentence shall be granted in case said prisoner
chose to stay in the place of his confinement
Q: What is the difference between conditional notwithstanding the existence of a calamity or
pardon and parole? catastrophe. (Art. 98, RPC)
CONDITIONAL PAROLE —end of topic—

PARDON
Granted by Chief Granted by the Board of
Executive Pardons and Parole 7. CIVIL LIABILITIES IN CRIMINAL
Basis is Basis is the CASES
Administrative Code Indeterminate Sentence
Law Q: Who are civilly liable in criminal cases?
Give any time after Given after prisoner has
final judgment served the minimum A: The obligation to make restoration or reparation
penalty for damages and indemnification for consequential
Violation of Violation of parole may damages devolves upon the heirs of the person
conditional pardon lead to reincarceration for liable. The action to demand restoration, reparation,
may result in service of unserved and indemnification likewise descends to the heirs
reincarceration and potion of original penalty of the person injured. (Art. 108, RPC)
prosecution under Art without prosecution for
159 (evasion of Art. 159. If there are 2 or more persons civilly liable for a
service of sentence) felony, the courts shall determine the amount for
which each must respond. (Art. 109, RPC)
Q: What are allowed deductions per month of
good behavior the Good Conduct Time The principals, accomplices, and accessories, each
Allowance? within their respective class, shall be liable severally
(in solidum) among themselves for their quotas, and
LENGTH OF ALLOWED subsidiarily for those of the other persons liable. (Art
SENTENCE SERVED DEDUCTION PER 110, par. 1, RPC)
MONTH OF GOOD
BEHAVIOR Q: What are included in civil liability ?
First 2 years 20 days
3rd to 5th years 23 days 1. Restitution (Art. 105, RPC)
6th to 10th years 25 days The restitution of the thing itself must be
11th year onwards 30 days made whenever possible, with allowance
for any deterioration or diminution of value
Aside from the deduction of from 20 to 30 days per as determined by the court. The thing itself
month of good behavior, an additional deduction of shall be restored, even though it be found
15 days is granted for each month of study, teaching in the possession of a third person who has
or mentoring rendered. (Art. 97, RPC, as amended acquired it by lawful means, saving to the
by R.A. No. 10592) latter his action against the proper person
who may be liable to him. (Art. 105)

committed by them or their employees. (Art. 102,

2. Reparation Of Damage Caused par. 1, RPC)
The court shall determine the amount of
damage, taking into consideration the price Innkeepers are also subsidiarily liable for the
of the thing, whenever possible, and its restitution of goods taken by robbery or theft within
special sentimental value to the injured their houses from guests lodging therein, or for the
party, and reparation shall be made payment of the value thereof, provided that such
accordingly. (Art. 106) guests shall have notified in advance the innkeeper
himself, or the person representing him, of the
If restitution cannot be made by the deposit of such goods within the inn; and shall
offender (Art. 105), or by his heirs (Art. furthermore have followed the directions which such
108), the law allows the offended party innkeeper or his representative may have given
reparation. (Id) them with respect to the care of and vigilance over
such goods. No liability shall attach in case of
3. Indemnification of Consequential robbery with violence against or intimidation of
Damages persons unless committed by the innkeeper's
Indemnification of consequential damages employees. (Art. 102, par. 2, RPC)
shall include not only those caused the
injured party, but also those suffered by his
family or by a third person by reason of the Q: When do employers have subsidiary civil
crime. (Art. 107) liability for crimes committed by their
employees?
Q: What are the instances when the extinction of
the penal action does not carry with it the A: Before the employers’ subsidiary liability is
extinction of the civil liability? exacted, there must be adequate evidence
establishing that
A: The acquittal of the accused does not 1. they are indeed the employers of the
automatically preclude a judgment against him on convicted employees;
the civil aspect of the case. The extinction of the 2. that the former are engaged in some kind of
penal action does not carry with it the extinction of industry;
the civil liability where: 3. that the crime was committed by the
a. Acquittal is based on reasonable doubt as employees in the discharge of their duties;
only preponderance of evidence is and
required; 4. that the execution against the latter has not
b. The court declares that the liability of the been satisfied due to insolvency. (Philippine
accused is only civil; and Rabbit Bus Lines, Inc. v. People, G.R. No.
c. Civil liability of the accused does not arise 147703)
from or is not based upon the crime of
which the accused is acquitted. —end of topic—
However, the civil action based on delict may be

deemed extinguished if mere is a finding on the final
judgment in the criminal action that the act or
omission from which the civil liability may arise did
not exist or where the accused did not commit the
acts or omission imputed to him. (Dy v. People, G.R.
No. 189081)
Q: What is the subsidiary civil liability of

innkeepers, tavernkeepers and proprietors of
establishment?
A: In default of the persons criminally liable,

innkeepers, tavernkeepers, and any other persons
or corporations shall be civilly liable for crimes
committed in their establishments, in all cases
where a violation of municipal ordinances or some
general or special police regulation shall have been

II. CRIMES UNDER THE REVISED PENAL B. CRIMES AGAINST THE

CODE FUNDAMENTAL LAW OF THE STATE
Q: What are the elements of arbitrary detention?

A. CRIMES AGAINST NATIONAL
SECURITY AND THE LAWS OF 1. Offender is a public officer or employee;
NATION 2. He detains a person; and
3. Detention is without legal grounds. (Art.
Q: What are the elements of treason? 123, RPC)
1. Offender is a Filipino citizen or an alien Q: When is detention without legal grounds?

residing in Philippines
2. There is a war in which the Philippines is 1. When person detained has not committed
involved, any crime or at least, there is no reasonable
3. Offender either levies war against the ground for suspicion that he has committed
government or adheres to the enemies by (i.e. valid warrantless arrest). (US v.
giving them aid or comfort (Art. 114, RPC) Gellada, G.R. No. 5151, 1910).
2. He is not suffering from violent insanity or
Q: What are the modes of committing any other ailment requiring compulsory
espionage? confinement in any hospital. (Reyes, p. 44,
2012).
1. By entering, without authority, a warship/
fort/ military or naval establishment/ Q: What is the difference between violation of
reservation to obtain any information, domicile and trespass to dwelling?
plans, or other data of confidential nature
relative to the defense of the Philippines; Trespass to dwelling Violation of domicile
2. By disclosing to the representative of a (Art. 280, RPC) (Art. 128, RPC)
foreign nation the contents of the articles Offender is a private Offender in violation of
data or information referred to in the first person or a public domicile is a public
mode which he had in his possession by officer acting in private officer acting under
reason of the public office he holds. (Art. capacity color of authority
117, RPC). Committed only by Violation of domicile is
entering the dwelling of committed in 3 different
Q: What are the punishable acts in piracy? another against the ways:
express and implied 1. Entering dwelling
1. Attacking or seizing a vessel on high seas will of the latter. of another against
or in Philippine waters; and the will of the
2. Seizing the whole or part of its cargo, latter;
complement or passengers while vessel is 2. Searching papers
on high seas or Philippine waters. (Art. 122, and other effects in
RPC). a dwelling without
the consent of the
Q: What are the circumstances which qualify owner; or
piracy? 3. Refusing to leave
the premises
1. Seizure of vessel by boarding or firing upon which he entered
the same; surreptitiously,
2. Abandonment of victims without any means after being
of saving themselves; and required to leave
3. When crime is accompanied by murder, the premises
homicide, physical injuries or rape. (Art.
123, RPC). —end of topic—
—end of topic—

C. CRIMES AGAINST PUBLIC ORDER government or

diminish state power
Q: What are the elements of rebellion or There is public uprising There is a swift attack
insurrection? and taking up of arms thru strategy, stealth,
threat, violence or
A: There must be: intimidation against
1. Public uprising and duly constituted
2. Taking arms against the government; authorities of the
Republic of the
For the purpose either to: Philippines, military
1. To remove from the allegiance to camp or installation,
government or laws: (a) territory of the communication
Philippines (in whole or in part); (b) body of networks, public
land, or army/naval/other forces; facilities or utilities
2. Deprive Chief Executive or Congress needed for the
wholly or partially of powers or exercise and continued
prerogatives. (Art. 134, RPC) possession of
governmental powers.
Q: Is there a complex crime of rebellion with
murder and other common crimes? —end of topic—
A: None. Hernandez remains binding doctrine
operating to prohibit the complexing of rebellion with
D. CRIMES AGAINST PUBLIC INTEREST
any other offense committed on the occasion
thereof, either as a means necessary to its
commission or as an unintended effect of an activity Q: The baptism of A was solemnized by B, an
that constitutes rebellion. (Enrile v. Salazar, G.R. ecclesiastical minister, in the absence of C, one
No. 92163, 92164, June 5, 1990) of the godparents. Upon request of the mother
of A, B caused the inclusion of the name of C in
Q: Distinguish rebellion from treason. the baptismal certificate of A as one of the
godparents and allowed a proxy for C during the
Rebellion Treason
baptismal ceremony. What is the criminal
(Art. 134, RPC) (Art. 114, RPC)
liability, if any, of the ecclesiastical minister?
Requires taking up of Does not require taking
arms up of arms
Giving of comfort and Giving of comfort and A: The ecclesiastical minister is not criminally liable
moral aid alone is not moral aid is punishable because the insertion of the name of C in the
punishable baptismal certificate will not affect the civil status of
No foreign enemy Foreign enemy A, which is a prerequisite before he can be charged
required with falsification under Art. 171. (Art. 171, RPC)
Committed during time Committed only during
of peace only time of war
Q: What is the difference between falsification of
Q: Distinguish rebellion from coup d’etat. public or official documents and that of private
documents?
Rebellion Coup d’etat
(Art. 134, RPC) (Art. 134-A, RPC) A: The essential difference between falsification of
Carried out by a May be committed by private documents and that of public or official
multitude of people many or only one documents lies in the fact that while in the former,
No qualifications as to Principal offenders are
the prejudice to a third party is primarily taken in to
offenders members of the
military, Philippine account so that if such damage is not apparent, or
National People, or there is at least no intention cause it, the falsification
public officer, acting as is not punishable; in the latter, that is, in the
principal offenders falsification of public or official documents, the
Purpose is to Purpose is to principal thing punished is the violation of public faith
overthrow the destabilize the and the perversion of truth which the document
government
solemnly proclaims, and for this reason it is

immaterial whether or not some prejudice has been malicious mischief. If he would be criminally liable
caused to third persons. (People v. Pacana, G.R. for swindling, the exemption in Art. 332 will obtain.
No. L-22642, 1924) (Art. 332; Art. 172, par. 2; Art. 315, par. 2[a], RPC)
Q: X, a Chinese national, filed a petition under Q: X submitted a photocopy of a Deed of Sale to

oath for naturalization, with RTC Manila. In his the PNP Crime Laboratory for examination of the
petition, he stated that he is married and living signatures found thereon. The Document
with Y in Manila; that he is of good moral Examiner confirmed that the subject deed was
character; and that he has conducted himself in falsified. However, under the Document Report
an irreproachable manner during his stay in the submitted, it was said that no definite
Philippines. However, at the time of the filing of conclusion can be rendered due to the fact the
the petition, Y was already living in Cebu, while questioned signatures are photocopies wherein
X was living with Z in Manila, with whom he has minute details are not clearly manifested. Y is
an amorous relationship. After his direct then charged with the crime of Falsification of
testimony, X withdrew his petition for Public Documents under Article 172(1) of the
naturalization. What crime or crimes, if any, did RPC. Can Y be convicted of the crime?
X commit? Explain. (2005 BAR)
A: X committed perjury. His declaration under oath A: No. In every criminal case, the accused is entitled
for naturalization that he is of good moral character to acquittal unless his guilt is shown beyond
and residing with Y are false. This information is reasonable doubt. Proof beyond reasonable doubt
material to his petition for naturalization. He does not mean absolute certainty; only moral
committed perjury for this willful and deliberate certainty is required, or that degree of proof which
assertion of falsehood, which is contained in a produces conviction in an unprejudiced mind. The
verified petition made for a legal purpose. (Choa v. prosecution must establish the fact of falsification or
People, G.R. No. 142011, 2003) forgery by clear, positive, and convincing evidence,
as the same is never presumed. In this case, the
Q: X leased his apartment to Y for P10,000 a genuineness and due execution of a photocopy
month. Y failed to pay the rent for 3 months. Z, could not be competently established without a copy
the son of X, prepared a demand letter falsely of the original. The declaration of the Document
alleging that his father had authorized him to Examiner is unreliable and inconsistent. Thus, it
collect the unpaid rentals. Y paid the unpaid cannot support a finding of guilt beyond reasonable
rentals to Z who kept the payment. What crime/s doubt against Lamsen. (Lamsen v. People, G.R. No.
did Z commit? Can Z invoke his relationship with 227069, 2017)
X to avoid criminal liability? (2008 BAR)
Q: X, a VP of a company, instructed Y to
A: Z committed either the crime of falsification of a withdraw money from her account via ATM. As
private document (if damage or at least intent to the ATMs were offline, Y got the amount through
cause damage could be proved) or the crime of the petty cash custodian of the company
swindling only. It could not be both falsification and instead. The company’s finance manager Z
swindling or a complex crime of estafa through informed X of the situation and the petty cash
falsification since the document falsified was a report and X immediately rectified the situation.
private document. The two crimes cannot go Z instructed the petty cash custodian to reverse
together. the report but informed the president of the
company of the situation. Z then instructed the
If Z would be made criminally liable for falsification petty cash custodian to retrieve the report, print
of a private document, he cannot invoke his it on a scratch paper, and make it look old. X was
relationship with X, his father, to avoid criminal administratively charged for using office funds
liability because Art. 332 of the RPC provides for personal use on the basis of such report. X
exemption from criminal liability in crimes against sued Z and the petty cash custodian for
property only, specifically for theft, swindling or Falsification of Private Documents. The petty

cash custodian argued that she was just crimes of Slander by deed and False
following Z’s instructions. Is the petty cash Certification?
custodian guilty of Falsification of Private
Documents? A: There is no probable cause for crimes of Slander
by Deed and False Certification. As aptly found by
A: Yes. The elements of Falsification of Private the ORSP, there was no improper motive on the part
Documents under Article 172 (2) of the RPC are: (a) of respondents in making the blotter entries as they
that the offender committed any of the acts of were made in good faith; in the performance of their
falsification, except those in Article 171 (7) of the official duties as barangay officials; and without any
same Code; (b) that the falsification was committed intention to malign, dishonor, or defame Cariaga.
in any private document; and (c) that the falsification Moreover, the statements contained in the blotter
caused damage to a third party or at least the entries were confirmed by disinterested parties who
falsification was committed with intent to cause such likewise witnessed the incidents recorded therein.
damage. On the other hand the elements of On the other hand, Cariaga's insistence that the
Falsification under Article 171 (4) of the RPC are as blotter entries were completely false essentially
follows: (a) the offender makes in a public document rests on mere self- serving assertions that deserve
untruthful statements in a narration of facts; (b) he no weight in law. Thus, respondents cannot be said
has a legal obligation to disclose the truth of the to have committed the crime of Slander by Deed.
facts narrated by him; and (c) the facts narrated by Furthermore, suffice it to say that the mere act of
him are absolutely false. In the instant case, the authenticating photocopies of the blotter entries
MeTC, RTC, and CA all correctly found Manansala cannot be equated to committing the crime of False
guilty beyond reasonable doubt of the aforesaid Certification under the law. (Cariaga v. Sapigao,
crime, considering that: (a) as UMC's Petty Cash G.R. No. 223844, 2017)
Custodian, she is legally obligated to disclose only
truthful statements in the documents she prepares —end of topic—
in connection with her work, such as the subject
report; (b) she knew all along that Siy never made
any cash advance nor utilized the proceeds thereof E. CRIMES AGAINST PUBLIC MORALS
for her personal use; (c) despite such knowledge,
Q: A succeeded in having sexual intercourse
she still proceeded in revising the subject report by
with B in consideration of Php 3,000 given by A.
inserting therein a statement that Siy made such a That was the first time she had sexual
cash advance; and (d) she caused great prejudice intercourse. Is B considered a prostitute?
to Siy as the latter was terminated from her job on
account of the falsified report that she prepared. A: No. One sexual intercourse with a man for money
(Manansala v. People, G.R. No. 215424, 2015) or profit does not make a woman a prostitute. A
woman is a prostitute when she:
Q: X filed a case against Y and others, accusing 1. habitually indulges in
a. sexual intercourse, or
them, as public officers, of the crimes of
b. lascivious conduct
Falsification of Public Documents, False 2. for money or profit. (Art. 202, RPC)
Certification, and Slander by Deed. X alleged
that their statements in 2 separate blotter entries —end of topic—
were false, and made to dishonor/discredit him.
The Office of the Provincial Prosecutor (OPP) F. CRIMES COMMITTED BY PUBLIC

dismissed both the complaint and the MR, and OFFICERS
the Office of the Regional State Prosecutor
(ORSP) did the same. X later filed a petition for Q: Define malfeasance, misfeasance and
review before the CA, who dismissed it holding nonfeasance.
the ORSP is not the final authority in the
Malfeasance Misfeasance Nonfeasance
hierarchy of the National Prosecution Service.
Performance Improper Omission of
Whether or not there was probable cause for the of some act performance some act

which ought of some act which ought to benefit of the offender

not to be which might be performed or of another person
done. lawfully be
done. —end of topic—
Q: Distinguish direct bribery from indirect

bribery G. CRIMES AGAINST PERSONS
Direct Bribery Indirect Bribery Q: What are the qualifying circumstances of
(Art. 210, RPC) (Art. 211, RPC)
murder?
Agreement between No such agreement
the public officer and exists
the giver of the gift 1. With treachery, taking advantage of superior
Offender agrees to Not necessary that the strength, with the aid of armed men, or
perform or performs an officer should do any employing means to weaken the defense or of
act, or refrains from particular act or even means or persons to insure or afford impunity.
doing something promise to do an act, 2. In consideration of a price, reward, or promise.
because of the gift or as it is enough that he 3. By means of inundation, fire, poison,
promise accepts gifts offered to
explosion, shipwreck, stranding of a vessel,
him by reason of his
office derailment or assault upon a street car or
locomotive, fall of an airship, by means of
Q: What are the principal distinctions of motor vehicles, or with the use of any other
malversation and estafa? means involving great waste and ruin.
4. On occasion of any of the calamities
Malversation Estafa with abuse of enumerated in the preceding paragraph, or of
(Art. 217, RPC) confidence an earthquake, eruption of a volcano,
(Art. 315, RPC)
destructive cyclone, epidemic or other public
Funds/property usually Funds/property are
public always private calamity.
Offender is usually a Offender is a private 5. With evident premeditation.
public officer who is individual or even a 6. With cruelty, by deliberately and inhumanly
accountable for the public officer who is not augmenting the suffering of the victim, or
public funds/property accountable for public outraging or scoffing at his person or corpse.
funds/property (Art. 248, RPC)
Crime is committed by Crime is commited by
appropriating, taking or misappropriating,
misappropriating/ coverting or denying Q: Is the killing of an eleven-year old boy
consenting or through having received murder?
abandonment or money, goods or other
negligence, permitting personal property A: Yes. It is murder qualified by treachery under Art.
any other person to 248. It is not so much as to put emphasis on the age
take public funds/ of the victim rather it is more of a description of the
property.
young victim’s state of helplessness. Minor children,
by reason of their tender years, cannot be expected
Q: What is the difference between illegal use of
public funds or property and malversation? to put a defense. When an adult person illegally
attacks a child, treachery exists. (People v Fallorina,
Illegal Use of Public Malversation GR No. 137347, 2004)
Funds or Property (Art. 217, RPC)
(Art. 220, RPC) Q: If the main objective of the offender is to kill
Offender does not Offender in certain a particular person who may be in a building or
derive any personal cases profits from
edifice and when fire is resorted to as a means
gain or profit proceeds of the crime
Public fund or property Public fund or property to accomplish such goal, what crime is
is applied to another is applied to the committed? (2012 BAR)
public use personal use and

A: The crime committed is murder only. Murder absolutory cause. (People v. Abarca, G.R. No.
qualified by means of fire absorbs the crime of arson 74433, 1987)
since the latter is an inherent means to commit the
former. (People v Baluntong GR No. 182061, 2010; Q: W kicked A’s stomach twice, after which, W
People v. Cedenio Gr No. 93485, 1994) picked up a rock to throw at A but was restrained
from doing so. As A stood up, Q punched him
Q: Is intent to kill presumed in cases where the on the stomach, causing him to collapse and cry
victim dies because of a deliberate act of the in pain. Thereafter, A was taken to the hospital.
malefactors? A was diagnosed to be suffering from "blunt
abdominal trauma with injury to the jejunum"
A: Yes. Intent to kill is conclusively presumed. In and was set for operation. A suffered cardiac
such case, even if there is no intent to kill, the crime arrest during the operation, and while he was
is homicide because with respect to crimes of revived through cardiopulmonary resuscitation,
personal violence, the penal law books particularly he lapsed into a coma after the operation.
to the material results following the unlawful act and
holds the aggressor responsible for all the Due to financial constraints, A was taken out of
consequences thereof. (Yapyuco v Sandiganbayan the hospital against the doctor's orders and
GR No. 120744-46 2012) eventually, died the next day. While A’s death
certificate indicated that the cause of his death
Q: What are the instances embraced in “death or was "cardiopulmonary arrest antecedent to a
physical injuries inflicted under exceptional perforated ileum and generalized peritonitis
circumstances”? secondary to mauling," an autopsy performed
on his remains revealed that the cause of his
1. Any legally married person who having death was "rupture of the aorta secondary to
surprised his spouse in the act of committing blunt traumatic injuries. The RTC found W and Q
sexual intercourse with another person, shall guilty beyond reasonable doubt of the crime of
kill any or both of them in the act or immediately Death Caused in a Tumultuous Affray. The CA
thereafter, or shall inflict upon them any serious modified W and Q’s conviction to that of
physical injury; and Homicide under Article 249 of the RPC with the
2. a parent who having surprised his daughter mitigating circumstance of lack of intent to
under eighteen (18) years of age and living with commit so grave a wrong.
him, in the act of committing sexual intercourse
with her seducer, shall kill any or both of them With the attending facts, are Q and C guilty of
in the act of immediately thereafter, or shall Homicide or Tumultuous Affray?
inflict upon them any serious physical injury
(Art. 247, RPC). He should not have promoted A: The SC agreed with the modification of the CA.
or facilitated the prostitution of his wife (or The elements of Death Caused in a Tumultuous
daughter) or that he or she has not consented Affray are as follows: (a) that there be several
to the infidelity of the other spouse. (People v persons; (b) that they did not compose groups
Puedan, GR No. 139576, 2002) organized for the common purpose of assaulting
and attacking each other reciprocally; (c) that these
Q: When does Art. 247 operate as a mitigating several persons quarreled and assaulted one
circumstance? When does it operate as an another in a confused and tumultuous manner; (d)
absolutory cause? that someone was killed in the course of the affray;
(e) that it cannot be ascertained who actually killed
A: Art. 247 does not define a crime but grants a the deceased; and (j) that the person or persons
mitigating circumstance for parricide, homicide and who inflicted serious physical injuries or who used
serious physical injuries committed under the violence can be identified. Based on case law, a
exceptional situation. If only less or slight physical tumultuous affray takes place when a quarrel occurs
injuries were inflicted, Art. 247 shall operate as an between several persons and they engage in a
confused and tumultuous affray, in the course of

which some person is killed or wounded and the that a person was killed; (b) the accused killed him
author thereof cannot be ascertained. or her; (c) the killing was attended by any of the
qualifying circumstances mentioned in Article 248 of
In the instant case, there was no tumultuous affray the RPC; and (d) the killing does not constitute
between groups of persons in the course of which A Parricide or Infanticide. One of the circumstances
died. On the contrary, the evidence clearly which qualifies the killing to Murder is the existence
established that there were only two (2) persons, W of treachery. There is treachery when the offender
and Q, who picked on one defenseless individual, A, commits any of the crimes against persons,
and attacked him repeatedly, taking turns in inflicting employing means, methods, or forms in the
punches and kicks on the poor victim. There was no execution thereof which tend directly and specially
confusion and tumultuous quarrel or affray, nor was to insure its execution, without risk to himself arising
there a reciprocal aggression in that fateful incident. from the defense which the offended party might
Since W and Q were even identified as the ones who make. In this case, the prosecution was able to
assaulted, the latter's death cannot be said to have prove that X’s attack on Y was so sudden and
been caused in a tumultuous affray. Therefore, W executed in such a manner that Y was caught off-
and Q’ s act of mauling A was the proximate cause guard on what X intended to do. (People v. Parba y
of the latter's death; and as such, they must be held Solon, G.R. No. 214506 (Resolution), 2015)
criminally liable therefore, specifically for the crime
of Homicide. (Wacoy y Bitol v. People, G.R. No. Q: An eyewitness testified that X fired four (4)
213792, 2015) gunshots towards Y, resulting to the latter's
death. To ensure Y's demise, X approached Y
Q: X, who was seated beside a vendor, suddenly and shot him again. Thereafter, accused-
shot Y at the back of his head as the latter was appellants fled the scene. The next day, Y's body
helping his daughter disembark from a was found near the duhat tree, prompting police
motorcycle. X fled but was chased by Z, a officers to conduct an investigation from which
security guard of the nearby school. X was were gathered the following evidence and
caught by the police the next day and was information: (a) a piece of bamboo was
subjected to a paraffin test, where X was recovered three (3) meters away from Y's
positive for gun residue. X denied the corpse; (b) Y purportedly had a previous
allegations and said that he was sleeping in his misunderstanding with X sometime in 1997, yet
house all morning and that a police officer the same was settled before the barangay; and
offered him to test his gun, and after firing the (c) Y allegedly had a drinking spree with his
gun, he was invited to the police station as friends at the time of the incident.
suspect.
An autopsy was likewise conducted on Y's body,
RTC convicted X with murder, saying that X revealing that there were four (4) incised
failed to present his wife or his brother to wounds on his left hand, a stab wound on his left
corroborate his testimony and to show that it chest, and five (5) gunshot wounds on his body;
was physically impossible for him to be at the that based on the nature and sizes of his
place of the incident. In fact, the short distance wounds, it was possible that the firearm used
of 100 meters between the crime scene and X’s was of the same caliber; and that his injuries
house, where he said he was, did not foreclose could not have been inflicted by a single person.
the possibility of his presence at the crime RTC and CA convicted the accused with the
scene since it would only take around 20 crime of Murder with the Use of an Unlicensed
minutes to get to the place. Firearm.
Is X correctly convicted for Murder? Are the lower courts correct?
A: Yes. In order to convict a person charged with the A: No. It is undisputed that Y sustained five (5)
crime of Murder, the prosecution must establish the gunshot wounds which led to his demise, it is
following elements beyond reasonable doubt: (a) unclear from the records: (a) whether or not the

police officers were able to recover the firearm used armed with .38 caliber revolvers standing a
as a murder weapon; and (b) assuming arguendo meter away from B. He saw P deliver the fourth
that such firearm was recovered, whether or not shot to B, but he could not identify the other
such firearm was licensed. The Court notes that the shooter. Thereafter, the two (2) assailants fled
disquisitions of the courts a quo were silent on a motorcycle. Z brought B to a Hospital. On
regarding this matter. Having failed in this respect, the way to the hospital, B told Z that it was P who
the Court cannot simply appreciate the use of an shot him. At around 11 o’clock in the morning of
unlicensed firearm as an aggravating circumstance. even date, B died due to gunshot wounds on his
(Manny Ramos, Roberto Salonga and Servillano head and trunk.
Nacional v. People of the Philippines; G.R. No.
218466, 2017) RTC convicted P of the crime of murder and
opined that it was attended with treachery. The
Q: One evening, several other people were RTC, however did not appreciate evident
sitting outside F’s house when R arrived and premeditation. Was the murder attended with
looking for a certain N. When A replied that N treachery?
wasn't there, R approached A and cocked a gun
at him. At that point, accused-appellant S arrived A: The Court agreed with the findings that P killed
and, without any warning, shot G in the chest. G B, and that the qualifying circumstance of treachery
was able to run away, and as S was chasing him, attended the same. The records show that B was
F heard another gunshot. Moments later, S outside when two (2) assailants shot him. During the
returned alone and left together with R. F tried to attack, B had no opportunity to raise any meaningful
contact G and when the latter did not respond, F defense against his assailants; and consequently,
went to look for him. Eventually, G was found he suffered multiple gunshot wounds on his head
dead in a kangkong swamp. and trunk, causing his death. (People v. Palanas,
G.R. No. 214453, 2015)
RTC found S guilty and appreciated treachery as
a qualifying circumstance. The CA affirmed the Q: X was walking with Y towards the mall, when
ruling and agreed with the findings of the RTC suddenly X stabbed Y repeatedly until the latter
that the killing of G was attended with treachery. died. X tried to flee but was caught by the police
The accused-appellant S claimed that such were and was charged with the crime of Murder. Z, a
acts of self-defense. Was treachery present? witness, testified against X. RTC convicted him
of Murder with qualifying circumstance of
A: Yes. Among the qualifying circumstances found evident premeditation, which it inferred from the
in Article 248 of the RPC is treachery. Under Article act of X in bringing with him a knife and waiting
14 of the same Code, there is treachery when the for the perfect moment to consummate the plan
offender commits any of the crimes against the to kill Y. Is the conviction correct?
person, employing means, methods, or forms in the
execution thereof which tend directly and specially A: NO. There is no evident premeditation as there
to insure its execution, without risk to himself arising has been nothing offered to establish when and how
from the defense which the offended party might he planned and prepared for the same, nor was
make. In People v. Tan, the Court held that the there a showing that sufficient time had lapsed
essence of treachery is the sudden and unexpected between his determination and execution. (People
attack, without the slightest provocation on the part v. Cirbeto y Giray, G.R. No. 231359. 2018)
of the person attacked. In this case, the prosecution
was able to prove that S's attack on G was so swift Q: What is treachery?
and sudden, and without any warning. (People v.
Samuya, G.R. No. 213214, 2015) A: Treachery is the direct employment of means,
methods, or forms in the execution of the crime
Q: Z who slept at at B’s residence heard 4 against persons which tends directly and specially
successive gunshots. Z looked through the to insure its execution, without risk to the offender
open door of B’s house and saw two (2) men arising from the defense which the offended party

might make. The essence of treachery is that the

was discharged but did
attack is deliberate and without warning, done in a
not hit the victim
swift and unexpected way, affording the hapless,
unarmed, and unsuspecting victim no chance to Attempted Murder If gun is directed at
resist or escape. In order for treachery to be properly or Homicide (Art. somebody else with intent
appreciated, two elements must be present: (1) at 248, 249, RPC) to kill but was not hit or the
the time of the attack, the victim was not in a position wound was not mortal
to defend himself; and (2) the accused consciously
and deliberately adopted the particular means, Frustrated Murder If gun was aimed at
methods, or forms of attack employed by him. or Homicide (Art. somebody with intent to
(People v. Cirbeto y Giray, G.R. No. 231359, 2018) 248, 249, RPC) kill, fired and hit the target
and the wound was mortal
Q: What are the elements of evident
premeditation?
Q: Will the subsequent marriage of the offender
A: For evident premeditation to be considered as a and the offended party extinguish the criminal
qualifying or an aggravating circumstance, the action or the penalty imposed in crimes of rape?
prosecution must prove: (a) the time when the Explain. (2002 BAR)
offender determined to commit the crime; (b) an act
manifestly indicating that the culprit has clung to his A: Yes. By express provision of law, subsequent
determination; and (c) a sufficient lapse of time valid marriage between the offender and offended
between the determination and execution, to allow party shall extinguish the criminal action or the
him to reflect upon the consequences of his act and penalty imposed, although rape has been
to allow his conscience to overcome the resolution reclassified from a crime against chastity, to that of
of his will. (People v. Cirbeto y Giray, G.R. No. a crime against persons. (Art. 266-C, RPC)
231359, 2018)
Q: Y, a 5-year old minor, was found dead in a
Q: What crime is committed in firing a gun? sack and after the autopsy conducted by the
PNP, it was found out that the child was raped.
After two witnesses made corroborated
Alarms and If the gun was fired in a statements pointing to X as the perpetrator of
Scandals (Art. 155, public place and not the crime, the latter was charged with the crime
RPC) aimed at anybody of rape with homicide. Was the State able to
discharge its burden to prove beyond
Illegal Discharge If the firearm was directed reasonable doubt every fact and circumstance
of Firearm (Art. at somebody else, fired, constituting the crime charged?
254, RPC) without intent to kill and
not hit A: Yes. When the crime is rape with homicide, there
may usually be no living witnesses if the rape victim
Frustrated Illegal If directed at somebody
is herself killed. Yet, the Rules of Court allows
Discharge (Art. without intent to kill and
circumstantial evidence to establish the commission
254, RPC) bullet jams
of the crime as well as the identity of the culprit.
Circumstantial evidence may be resorted to when to
Impossible Crime If accused fired the gun
insist on direct testimony would ultimately lead to
(Art. 4, RPC) without knowing that there
setting a felon free. (People v. Villaflores y Olano,
were no bullets
G.R. No. 184926, 2012)
Grave Threats (Art. If gun was pointed to the
282, RPC) victim for the victim’s Q: What are the necessary elements of statutory
family to turn over money rape?
in exchange of sparing the
victim’s life and the gun A: The elements of statutory rape are that:

1. The victim is a female under 12 years or is

demented; and Likewise, the “sweetheart theory” is effectively an
2. The offender has carnal knowledge of the admission of carnal knowledge of the victim and
victim. consequently places on him the burden of proving
the supposed relationship by substantial evidence.
Considering that the essence of statutory rape is To be worthy of judicial acceptance, such a defense
carnal knowledge of a female without her consent, should be supported by documentary, testimonial or
neither the use of force, threat or intimidation on the other evidence. (People vs. Grande, G.R. No.
female, nor the female’s deprivation of reason or 170476, 2009)
being otherwise unconscious, nor the employment
on the female of fraudulent machinations or grave Q: A is a 29-year-old woman with a mental age
abuse of authority is necessary to commit statutory of a six to seven-year-old. One evening, B, her
rape. Full penile penetration of the female’s genitalia neighbor, lured A to his house and succeeded to
is not likewise required, because carnal knowledge have carnal knowledge with her. Can B be found
is simply the act of a man having sexual bodily guilty of rape?
connections with a woman. (People v. Teodoro,
G.R. No. 175876, 2013). A: Yes. B can be found guilty of rape. Carnal
knowledge with a [person with intellectual disability]
Q: X was convicted of statutory rape by the RTC. is rape under paragraph 1 of Article 266-A of the
While the qualifying circumstance of RPC because a mental retardate is not capable of
relationship was not proven, the victim’s giving her consent to a sexual act. It is sufficient for
testimony showed that her age was only 11 the State to establish, one, the sexual congress
years at the time of the rape. X failed to object to between the accused and the victim, and, two, the
the said testimony regarding the victim’s age. [intellectual disability] of the victim. The Court has
Should X be held guilty only of simple rape given consistently held that carnal knowledge of a female
that during the trial, the victim’s birth certificate with a mental age below 12 years of age, as rape of
was not submitted as evidence? a woman deprived of reason. (People v. Butiong,
G.R. No. 168932, 2011)
A: Yes. The Pruna guidelines provides that in
proving the victim’s age, the complainant’s Q: A was sleeping when she was awakened by
testimony will suffice provided that it is expressly someone who was touching her feet. She saw
and clearly admitted by the accused and that the that it was B, who was poking her neck with a
failure of the accused to object to the testimonial knife. She resisted but B threatened to hurt A. B
evidence regarding age shall not be taken against dragged A outside the house and brought A to a
him. Since the only evidence offered to prove the nearby tree, where he injected an unknown
victim’s age was her own testimony, it was substance into A’s stomach. A fell unconscious.
necessary for X to clearly admit to the victim’s Upon regaining consciousness, she found
alleged age for the testimony to be admitted. X’s herself naked, and her vagina was aching and
mere failure to object to the testimony regarding the soaked with white and red substance.
victim’s age cannot be taken against him. (People v.
Lupac, G.R. 182230, 2012). A alleges that B raped her but B interposes that
there is no proof that it was him due to the fact
Q: What is the rule on sweet heart defense as an that A was said to be unconscious and therefore
affirmative defense in the crime of rape? could not be sure that she was in fact raped or
A: The “sweetheart defense” is a much abused that it was B who did such. Was B sufficiently
defense that rashly derides the intelligence of the proven guilty of raping A?
Court and sorely tests its patience. Being an
affirmative defense, it must be established with A: Yes. The commission of the rape was
convincing evidence by some documentary and/or competently established although A had been
other evidence like mementos, love letters, notes, unconscious during the commission of the act.
pictures and the like. Conviction for rape may be based on circumstantial

evidence when the victim cannot testify on the A: NO. In rape cases, the victim's sole testimony
actual commission of the rape as she was rendered must still stand the test of credibility. In this case, Y’s
unconscious when the act was committed, provided allegation of relationship with X was overwhelmingly
that more than one circumstance is duly proved and corroborated by his other witnesses. The finding of
that the totality or the unbroken chain of the a then subsisting relationship between the parties
circumstances proven lead to no other logical raises suspicions on the truthfulness of X’s
conclusion than the appellant’s guilt of the crime testimony, wherein she vehemently denied having a
charged. (People v. Belgar, G.R. No. 182794, 2014) relationship with the accused. Furthermore, the
conduct of X immediately following the alleged
Q: KKK executed a Complaint-Affidavit, alleging sexual assault is significant in establishing the truth
that her husband raped her at their residence or falsity of the charge of rape. The value of a
and then boxed her shoulder days after the rape witness's testimony should be compatible with
incident for refusing to have sex with him. The human knowledge, observation, and common
accused posits that consent to copulation is experience, such that whatever is repugnant to
presumed between cohabiting husband and wife these standards becomes incredible and must lie
unless the contrary is proved and that the outside judicial cognizance. Considering the totality
standards for determining the presence of of the evidence presented in this case, there is
consent or lack thereof must be adjusted on the doubt whether Y employed force or intimidation
ground that sexual community is a mutual right upon X during their sexual encounter. (People v.
and obligation between husband and wife. Can Rubillar Jr. y Gaberon, G.R. No. 224631, 2017)
rape exist within a marriage?
Q: X pointed a gun at Y, a 15-year-old girl, and
A: Yes. R.A. No 8353 is one of the measures that threatened to kill her and her parents. X then
eradicated the archaic notion that marital rape dragged Y to a barn and raped her. Y told the
cannot exist because a husband has absolute incident to Z but wished for the latter to remain
proprietary rights over his wife’s body and thus her silent, Z obliged. Y was unable to focus on her
consent to every act of sexual intimacy with him is studies so she moved to the city to continue her
always obligatory or at least, presumed. Rape, as a studies. X was able to track her down and made
form of sexual violence, exists within marriage. A Y his sex slave by forcing her to take shabu and
man who penetrates her wife without her consent or then sexually abusing her. Eventually, Y got
against her will commits sexual violence upon her. hooked on drugs and portrayed herself as X’s
He cannot be permitted to violate this dignity by paramour and decided to live together. The illicit
coercing her to engage in a sexual act without her relationship was reported to the barangay by X’s
full and free consent. CEDAW and its accompanying wife and Y’s parents. Y eventually underwent
Declaration, defines and penalizes the act as rape rehabilitation and, along with her parents, filed
under R.A. No. 8353. (People v. Jumawan, G.R. No. Rape against X.
187495, 2014)
RTC convicted him with the crime of rape, which
Q: X was on her way home when Y arrived and the CA affirmed saying that assuming arguendo
offered to take her home. However, Y took X to a that he indeed eventually had a relationship with
motel and allegedly raped her. Y then dropped Y, their first sexual encounter was without the
her off at a public market where X proceeded to latter's consent and was attended with force and
buy groceries before going home. Y was then intimidation as he pointed a gun at her while
charged with Rape. In his defense, Y claimed satisfying his lustful desires. Shall the
that they were sweethearts and that the sexual conviction for the crime of Rape be upheld?
act was consensual. Witnesses, including two of A: Yes. The gravamen of Rape is sexual intercourse
X’s friends, supported the claim that the two with a woman against her will. In this case, the
were in a relationship. Can Y be convicted of prosecution was able to prove beyond reasonable
Rape? doubt the presence of all the elements of Rape by
sexual intercourse under Article 266-A (1) of the
RPC, as amended by RA 8353. Through Y's positive

testimony, it was indeed established that on their prevail. RA 8353 is not only the more recent
first sexual encounter, X threatened Y, removed her statutory enactment but more importantly, the more
lower garments, covered her mouth, and proceeded comprehensive law on rape; therefore, the Court
to have carnal knowledge of her without her herein clarifies that in cases where a minor is raped
consent. The RTC, as affirmed by the CA, found Y's through sexual intercourse, the provisions of RA
testimony to be credible, noting further that X failed 8353 amending the RPC ought to prevail over
to establish any ill motive on her part which could Section 5 (b) of RA 7610 although the latter also
have compelled her to falsely accuse him of the penalizes the act of sexual intercourse against a
aforesaid act. In this relation, case law states that minor. (People v. Ejercito, G.R. No. 229861, 2018)
the trial court is in the best position to assess and
determine the credibility of the witnesses presented Q: AAA, her mother and sister, and her sister's
by both parties, and hence, due deference should common-law spouse, X, lived at the same house.
be accorded to the same. (People v. Ejercito, G.R. One afternoon, AAA was in the house of a
No. 229861, 2018) neighbor, when suddenly, X, who was drunk at
the time, pulled her into their house while AAA's
Q: What are the elements of Rape? mother and sister were not around. Once inside,
X ordered AAA to take off her clothes, covered
A: Article 266-A of the RPC states that Rape is her mouth, and then proceeded to have carnal
committed: knowledge of her. Later that day, AAA's mother
1. By a man who shall have carnal knowledge of noticed that AAA was pale, bruised, limping, and
a woman under any of the following her dress soiled, making her suspect that X had
circumstances: something to do with AAA's disheveled
a. Through force, threat, or intimidation; appearance. Such suspicion was later
b. When the offended party is deprived of confirmed when AAA admitted to her sister that
reason or otherwise unconscious; X raped her, prompting AAA's mother and sister
c. By means of fraudulent machination or to bring her to the hospital for medical
grave abuse of authority; and examination.
d. When the offended party is under twelve
(12) years of age or is demented, even They also went to the police station to report the
though none of the circumstances matter. During the trial, a psychiatric consultant
mentioned above be present. testified that: (a) while AAA is already 20 years
2. By any person who, under any of the old, she has a mild to moderate mental
circumstances mentioned in paragraph 1 retardation, with a mental age of 6-7 years old;
hereof, shall commit an act of sexual assault by (b) children of this mental age can recall and
inserting his penis into another person's mouth narrate events if coupled with subtle prodding;
or anal orifice, or any instrument or object, into and (c) AAA has difficulty in answering
the genital or anal orifice of another person. questions and can only respond in phrases; (d)
(People v. Ejercito, G.R. No. 229861, 2018) AAA had no overtures or distortions in her
perceptions or memory; and (e) AAA was not
Q. What should be the charge when both the suffering from psychosis, which meant that she
elements of Rape under Article 266-A and was in touch with reality and not hallucinating
Section 5(b) of RA 7610 are present? strangely. What is the criminal liability of X?
A: Between Article 266-A of the RPC, as amended A: X is guilty beyond reasonable doubt of the crime
by RA 8353 and Section 5 (b) of RA 7610, the Court of Rape as defined and penalized under Art. 266-A
deems it apt to clarify that Y should be convicted (1) of the RPC. The Court agrees with the findings
under Article 266-A. Verily, penal laws are crafted of both the RTC and the CA that the prosecution
by legislature to punish certain acts, and when two established, among others, that: (a) on May 1, 2006,
(2) penal laws may both theoretically apply to the AAA was in her neighbor's house when X pulled her
same case, then the law which is more special in into their own house; (b) once inside, X covered her
nature, regardless of the time of enactment, should mouth then had carnal knowledge of her; (c) AAA

confessed to her sister that X took advantage of her; vagina. Afterwards, AAA was returned to the
and (d) a medical examination confirmed that AAA cottage.
was indeed raped.
The next day, AAA's father found her crying at
AAA's mental retardation cannot be taken into the cottage. The RTC found accused appellants
account. It must be stressed that in all criminal guilty beyond reasonable doubt of the crime of
prosecutions, the accused shall be informed of the rape which was affirmed by the CA. Accused-
nature and cause of the accusation against him to appellants appealed. Decide whether or not the
ensure that his due process rights are observed. presence of either circumstance - "use of a
Thus, every indictment must embody the essential deadly weapon" or "by two or more persons" -
elements of the crime charged with reasonable qualifies the crime.
particularity as to the name of the accused, the time
and place of commission of the offense, and the A: Given that the rape occurred during the effectivity
circumstances thereof. In this case, suffice it to say of the old rape provision, it shall be controlling in the
that AAA's mental retardation, while proven during case. Under Art 335, “Rape is committed by having
trial, cannot be considered in view of the fact that it carnal knowledge of a woman under any of the
was not specifically alleged in the Information following circumstances: 1. By using force or
charging X of Rape. (People of the Philippines v. intimidation; 2. When the woman is deprived of
Mario Galia Bagamano; G.R. No. 222658, 2016) reason or otherwise unconscious; and 3. When the
woman is under twelve years of age or is demented.
Q: Respondent X is charged with the crime of Either circumstance is qualifying”. When the two
Statutory Rape. It is alleged that, on two circumstances are present, there is no legal basis to
separate instances, he forced himself upon his consider the remaining circumstance as a generic
9-year-old niece. Should the conviction be aggravating circumstance for either is not
upheld? considered as such under Article 14 of the Revised
Penal Code enumerating what are aggravating
A: Yes. There is no plausible reason for X’s niece to circumstances. (People of the Philippines v. Arugta,
testify against her own relative. Additionally, it is G.R. No. 213216, 2015)
noted that, for Statutory Rape, proof of threat or
force are not necessary elements of the crime, Q: Whether or not force employed in the
considering that the absence of consent is commission of the crime of rape must be
presumed when the victim is below 12 years. irresistible?
Furthermore, the Court found that the acts must be
upgraded to Qualified Statutory Rape, because X is A: In this case, records reveal that accused-
a relative by affinity within the third civil degree. appellants threatened AAA with a bladed instrument
(People v. De Guzman y Buhay, G.R. No. 234190, and tied her up before having carnal knowledge of
2018) her without her consent. Jurisprudence holds that
force or intimidation, as an element of Rape, need
Q: Accused-appellants A and C intercepted not be irresistible; as long as the assailant's
AAA, threatened her with a bladed weapon, objective is accomplished, any question of whether
dragged her to a cottage at a nearby beach the force employed was irresistible or not becomes
resort, and bound her hands and feet. irrelevant. Intimidation must be viewed from the lens
Thereafter, they removed her clothes and placed of the victim's perception and judgment and it is
her on the floor. A then mounted AAA and enough that the victim fears that something will
inserted his penis into her vagina. After A happen to her should she resist her assailant's
satisfied his lust, C took over and raped her. advances. In this regard, case law provides that the
Thereafter, accused-appellants left AAA at the act of holding a bladed instrument, by itself, is
cottage. An hour later, C returned and dragged strongly suggestive of force or, at least, intimidation,
AAA to a store. There C undressed her again, and threatening the victim with the same is sufficient
mounted her, and inserted his penis into her to bring her into submission. (People of the
Philippines v. Arugta, G.R. No. 213216, 2015)

Q: One evening, AAA joined her co-worker for a or more persons, the crime will be Qualified Rape,
vacation in the province of Nueva Ecija as they necessitating the imposition of a higher penalty.
were both laid off from work, and they stayed at (People of the Philippines v. Alberto Alejandro Y
the one-storey house of the latter's 62-year old Rigor And Joel Angeles Y De Jesus; G.R. No.
mother, BBB. Thereat, AAA would sleep at the 225608, 2017)
papag while BBB slept on a mattress on the
floor. At around 2:30 in the morning of January Q: AAA was playing with C, her cousin and the
5, 1996, AAA awoke to the sound of BBB's pleas daughter of her uncle, M, on the second floor of
for mercy. Aided by the kerosene lamp placed the latter’s house. At the time, M happened to
on the floor, AAA saw BBB being mauled and also be at the second floor of the house. When
stabbed to death by X and Y. Thereafter, X C went to the ground floor to urinate, M
approached AAA and restrained her arms, while approached AAA and began to remove his
Y pulled AAA's pants and underwear down and shorts. Thereafter, he laid AAA, raised her skirt
started having carnal knowledge of her. After Y and pulled down her underwear. M inserted his
was done, he switched places with X and the penis into her vagina, causing AAA to feel pain
latter took his turn ravishing AAA. and to shout for help from C.
As AAA was able to fight back by scratching X's When appellant realized that his daughter C
back, X punched her on the left side of her face might be returning anytime, he let AAA go. AAA
while Y hit her left jaw with a piece of wood. AAA did not recount her ordeal to anyone until she
then lost consciousness and woke up in a complained to her mother, CCC, of the pain in
hospital, while BBB succumbed to her injuries. her vagina. AAA then confessed that M inserted
What is the criminal liability of X and Y? his penis into her vagina. While M’s other niece,
BBB, was with him in his house, he inserted his
A: X should be convicted of one (1) count of penis into her mouth and threatened her not to
Qualified Rape and one (1) count of Homicide. This tell anyone what he had done. BBB did not
will no longer affect Y as he had already withdrawn report the incident immediately because she
his appeal prior to the promulgation of this decision. feared M. M was convicted for Simple Rape and
To successfully prosecute the crime of homicide, the for Rape by Sexual Assault. Should the
following elements must be proved beyond testimonies of AAA and BBB be given weight?
reasonable doubt: (1) that a person was killed; (2)
that the accused killed that person without any A: Testimonies of child-victims are normally given
justifying circumstance; (3) that the accused had the full weight and credit, since when a girl, particularly
intention to kill, which is presumed; and (4) that the if she is a minor, says that she has been raped, she
killing was not attended by any of the qualifying says in effect all that is necessary to show that rape
circumstances of murder, or by that of parricide or has in fact been committed. When the offended
infanticide. Moreover, the offender is said to have party is of tender age and immature, courts are
performed all the acts of execution if the wound inclined to give credit to her account of what
inflicted on the victim is mortal and could cause the transpired, considering not only her relative
death of the victim without medical intervention or vulnerability but also the shame to which she would
attendance. be exposed if the matter to which she testified is not
true. Youth and immaturity are generally badges of
On the other hand, under Art. 335 of the RPC, the truth and sincerity. A young girl’s revelation that she
elements of Rape are:(1) the offender had carnal had been raped, coupled with her voluntary
knowledge of the victim; and (2) said carnal submission to medical examination and willingness
knowledge was accomplished through the use of to undergo public trial where she could be
force or intimidation; or the victim was deprived of compelled to give out the details of an assault on her
reason or otherwise unconscious; or when the victim dignity, cannot be so easily dismissed as mere
was under twelve (12) years of age or demented. concoction.”
The provision also states that if the act is committed
either with the use of a deadly weapon or by two (2)

In proving the age of victims, there must be of her disability at the time of its commission. It is
independent evidence proving the age of the victim, settled that the evidence for the prosecution must
other than the testimonies of prosecution witnesses stand or fall on its own merits and cannot be allowed
and the absence of denial by the accused." to draw strength from the weakness of the evidence
Documents such as her original or duly certified birth for the defense. Additionally, mere relationship by
certificate, baptismal certificate or school records affinity between X and Y does not sufficiently create
would suffice as competent evidence of her age. moral certainty that the former knew of the latter's
(Here, there was nothing on record to prove the disability. (People v. Niebres, G.R. No. 230975.
minority of "AAA" other than her testimony, 2017)
appellant’s absence of denial, and their pre-trial
stipulation. The prosecution also failed to establish Q: After responding to a report and resorting to
that the documents referred to above were lost, a car chase, the officers were able to block its
destroyed, unavailable or otherwise totally absent.) path. Upon order of the officers, all the riders
(People v. Mendoza, G.R. No. 205382, 2014) stepped out of the vehicle except for the driver.
Police X, who was fully armed, opened the door
Q: X, the husband of Y’s sister, raped Y (a 16- opposite the driver’s side to check on him, but
year-old girl) on two occasions. After as soon as he did, the driver shot Police X thrice
complaining to her mother about abdominal in the chest. Was there treachery qualifying the
pains, Y was brought to the doctor who killing to murder?
discovered that she was 5 to 6 months pregnant.
The doctor also declared that she was suffering A: None. Pitulan was convicted of direct assault with
from a mild mental retardation with an homicide. Police X was a fully armed and trained
intelligence quotient equivalent to a nine-year- police officer; his training and police work would
old child. have prepared him for the possible hostilities that a
person’s impending arrest may commit. The
RTC ruled that X is guilty of Simple Rape as the previous car chase and the accused's refusal to
qualifying circumstance of relationship by heed police orders should have warned him of
affinity was not alleged in the information. CA possible violent behavior to evade arrest. When a
ruled that X should be convicted for Qualified police officer had been forewarned of brewing
Rape as (a) the state of mental retardation of Y violence, he or she could not have been completely
was completely established on the account of taken by surprise by the attack. In such instance,
the testimony and psychiatric evaluation of the therefore, treachery could not have attended the
doctor and (b) X failed to dispute the mental killing. (People v. Pitulan y Briones, G.R. No.
retardation of Y during trial. Should the 226486, 2020)
qualifying circumstance be considered?
—end of topic—
A: NO, X shall only be convicted for Simple Rape.
The CA erred in appreciating the qualifying
circumstance of X knowledge of Y’s mental disability H. CRIMES AGAINST PERSONAL
at the time of the commission of the crime, there LIBERTY AND SECURITY
being no sufficient and competent evidence to
substantiate the same. Such qualifying Q: What are the elements of kidnapping for
circumstance, however, must be sufficiently alleged ransom?
in the indictment and proved during trial to be
properly appreciated by the trial court. It must be a. The accused are private persons,
proved with equal certainty and clearness as the b. The person kidnapped is deprived of liberty,
crime itself; otherwise, there can be no conviction of c. That person was taken or detained against
the crime in its qualified form. The fact that X did not his/her will,
dispute Y's mental retardation during trial is d. That such kidnapping was illegal or unlawful,
insufficient to qualify the crime of rape, since it does and
not necessarily create moral certainty that he knew

e. The kidnapping was done in consideration of a Q: X, a private person, entered Y’s house by
ransom or a payment of release. (People v. pushing her when she answered the door and
Avancena, G.R. 200512, 2017) shouting at her to let him in or else he would hurt
her. This was in order to get away from a gang
Q: Y worked as a housemaid and yaya of the who was chasing after him with bolos. What is
one-week old son of the spouses A and B. When X’s criminal liability?
Y learned that her 70 year-old mother was
seriously ill, she asked B for a cash advance of A: He incurs no criminal liability. The provisions of
P1K but B refused. One morning, Y gagged the Art. 280 on qualified trespass to dwelling shall not
mouth of B’s son with stockings; placed the be applicable to any person who shall enter
child in a box; sealed it with masking tape and another’s dwelling for the purpose of preventing
placed the box in the attic. Later in the afternoon, some serious harm to himself. In this case, he
she demanded P5K as ransom for the release of entered Y’s house in order to avoid some serious
his son. B did not pay the ransom. harm to himself and so he incurs no criminal liability.
Subsequently, Y disappeared. (Art. 280, par. 3, RPC)
After a couple of days, B discovered the box in Q: X was forcibly taken from her house by a
the attic with his child already dead. According group of men. For several days, X was kept in a
to the autopsy report, the child died of house where she was guarded by several men.
asphyxiation barely three minutes after the box The kidnappers demanded ransom money from
was sealed. What crime or crimes did Y commit? X’s family. On the day of the pay- off, the
Explain. (BAR 2005) kidnappers were able to take the bag containing
the ransom but were subsequently arrested. Can
A: Murder was committed. There is no kidnapping they be convicted with Kidnapping for Ransom
with murder but only murder where a 3-year old child under Article 267 of the RPC?
was gagged and hidden in a box where the child
died and accused asked for ransom. The demand A: Yes. The elements of the crime are as follows:
did not convert the offense into kidnapping with (a) the offender is a private individual; (b) he kidnaps
murder because the accused was aware that the or detains another, or in any manner deprives the
victim would suffocate to death within minutes after. latter of his liberty; (c) the act of detention or
The demand is only a part of the diabolic scheme to kidnapping must be illegal; and (d) in the
conceal the body and demand money before commission of the offense any of the following
discovery of the body. (People v. Lora, G.R. No. L- circumstances is present: i) the kidnapping or
49430, 1982) detention lasts for more than three days; ii) it is
committed by simulating public authority; iii) any
Q: A, a private individual, kidnapped B, a minor. serious physical injuries are inflicted upon the
On the second day, A released B before any person kidnapped or detained or threats to kill him
criminal information was filed. At the trial of his are made; or iv) the person kidnapped or detained
case, A raised the defense that he did not incur is a minor, female, or a public officer. Notably, the
any criminal liability since he released the child duration of detention is immaterial if the victim is a
before the lapse of the 3- day period and before minor, or if the purpose of the kidnapping is to extort
criminal proceedings for kidnapping were ransom. There must be a purposeful or knowing
instituted. Will A's defense prosper? (2004 BAR) action by the accused to forcibly restrain the victim
coupled with intent. In this case, the kidnappers
A: No, A's defense will not prosper. Voluntary illegally detained X against her will for the purpose
release by the offender of the offended party in of extorting ransom from her family. Thus, they are
kidnapping is not absolutory. Restraint need not be guilty of Kidnapping for ransom. (People v. Lidasan,
permanent to be punished for kidnapping and G.R. No. 227425, 2017)
serious illegal detention. (Art. 267, RPC, US v.
Peralta, G.R. No. L-3273, 1907) —end of topic—

separate and distinct crime. (People v. Moreno, GR

I. CRIMES AGAINST PROPERTY No. 140033, 2002)
Q: X, armed with a long bladed weapon, entered Q: A and his family were inside their car, stuck
Y’s house. Y’s wife shouted “magnanakaw!” and in traffic. B suddenly appeared at the side of the
X stabbed Y’s wife, and stole from Y’s wallet. X car, poking a gun at him, asking for his phone. B
was charged with robbery with homicide. X then shot him after getting the phone. Despite
maintains that the Prosecution did not prove medical intervention, A died. Is the RTC and the
that violence or intimidation was employed in CA correct in finding B guilty of Robbery with
the course of the robbery. Homicide?
X argues that he could not be held liable for A: YES. The special complex crime of robbery with
robbery by using force upon things considering homicide takes place when a homicide is committed
that the culprit had neither broken any wall, roof, either by reason, or on the occasion, of the robbery.
floor, door or window to gain entry into the To sustain a conviction for robbery with homicide, it
house nor entered the house through an must be proven that there was: (1) the taking of
opening not intended for entrance. If at all, he personal property belonging to another; (2) with
could be liable only for the separate crimes of intent to gain; (3) with the use of violence or
theft and homicide, not of the composite crime intimidation against a person; and (4) on the
of robbery with homicide. Prosecution counters occasion or by reason of the robbery, the crime of
that the evidence showed that the X’s principal homicide, as used in its generic sense, was
intent had been to rob the victim’s house, with committed.
the homicide being perpetrated as a mere
incident of the robbery. Could X be held liable Furthermore, Homicide is said to have been
for robbery with homicide, instead of the committed by reason or on occasion of robbery if it
separate crimes of theft and homicide? was committed: (a) to facilitate the robbery or the
escape of the culprit; (b) to preserve the possession
A: Yes. The fact that X was armed with the long- by the culprit of the loot; (c) to prevent discovery of
bladed weapon, which was undoubtedly a deadly the commission of the robbery; or (d) to eliminate
weapon, competently proved the presence of witnesses in the commission of the crime. Thus, the
violence or intimidation against persons that intent to rob must precede the taking of human life
qualified the offense as robbery instead of theft. For but the killing may occur before, during or after the
sure, too, the patent intent of the appellant was robbery.
originally to commit robbery, with the homicide being
committed only in the course or on the occasion of It was established that B poked his gun at A, took
the perpetration of the robbery. As the records the latter’s phone, and thereafter, shot him, resulting
show, Y was awakened by someone shouting his death. (People v. Balute y Villanueva, G.R. No.
"Magnanakaw!" The shout was most probably made 212932, 2015)
by the victim, whom X then stabbed in order to
facilitate his escape. (People v. Esugon y Avila, G.R. Q: Respondents planned to rob the house of A.
No. 195244, 2015). They used a knife to get through the fence,
destroyed the knob of the kitchen door and
Q: How is Robbery with Rape committed? gained entry, where they took valuable items of
A. When A woke up, he was assaulted and
A: The offender must have the intent to take the stabbed by one of the respondents, which led to
personal property of another under circumstances his death. Are the respondents guilty of the
that makes the taking one of robbery, and such crime of Robbery with Homicide?
intent must precede the rape. If the original plan was
to commit rape, but the accused after committing the A: Yes. The elements for the crime of robbery with
rape also committed robbery when the opportunity homicide are: (a) the taking of personal property is
presented itself, the robbery should be viewed as a committed with violence or intimidation against

persons; (b) the property belongs to another; (c) the Q: On her way home, X saw an injured puppy.
taking is animo lucrandi or with intent to gain; and Since the puppy did not have a collar, she
(d) on the occasion or by reason of the robbery, brought it home so she could have it as a pet.
homicide was committed. A conviction requires that Her son in fact begged X to keep the puppy. The
the robbery is the main purpose and the killing is following day, X bought a collar for the puppy
merely incidental to the robbery. The intent to rob and brought it to a veterinarian for treatment.
must precede the taking of human life, but the killing Did X incur criminal liability in bringing the
may occur before, during or after the robbery. puppy home as a pet? Did she incur civil
liability? (2010 BAR)
It was established that the respondents were all
armed with knives when they broke into the house A: Yes, X incurred criminal liability for the crime of
of A, took personal properties, and in the course simple theft. Since Article 308 of the Revised Penal
thereof, stabbed A, resulting to his death. (People v. Code used the words personal property without
Palma y Varcas, G.R. No. 212151. 2015) qualification, it follows that all personal properties as
understood in the context of the Civil Code, may be
Q: While A, B, C and D were robbing a bank, the subject of theft. The puppy is personal property
policemen arrived. A crossfire ensued between which is susceptible of taking and has pecuniary
the bank robbers and the responding policemen, value. She took it with intent to own it, hence, with
and X, one of the policemen, was killed. What intent to gain. She also may incur civil liability if the
crime or crimes, if any, had been committed? owner of the puppy would incur loss due to non-
Explain. (2009 BAR) restitution or return thereof to the owner. Finding any
property of value, legally regarded as lost property,
A: The crimes committed are Robbery with would constitute theft if the finder failed to deliver the
Homicide, a single indivisible offense, and Direct same to local authorities or to its owner. Once she
Assault with Multiple Attempted Homicide, a is found liable for theft criminally, she will also be
complex crime. Robbery with Homicide was civilly liable. (Laurel v. Abrogar, G.R. No. 155076,
committed because one of the responding 2009, RPC)
policemen was killed by reason or on occasion of
the robbery being committed. The complex crime of Q: Can international telephone calls be an object
Direct Assault with Multiple Attempted Homicide of theft?
was committed in respect of the offender’s firing
guns at the responding policemen who are agents A: Yes. Any property which is not included in the
of persons in authority performing their duty when enumeration of real properties under the Civil Code
fired at to frustrate such performance. (Art. 294(1), and capable of appropriation are considered
RPC; People v. Ladjaalam, G.R. Nos. 136149-51, personal properties and can be the subject of theft
2000) under the RPC. (Laurel v. Abrogar, G.R. No.
155076, 2009)
Q: Suppose in the course of the robbery, before
the policemen arrived, B shot and killed A Q: What determines the consummation of theft?
following a heated disagreement on who should
carry the money bags, what would be the A: It is consummated upon the voluntary and
criminal liability of B, C and D? Explain. malicious taking of the property, which is realized by
the material occupation of the thing whereby the
A: B would be liable for Robbery with Homicide thief places it under his control and in such a
since killing A is considered to be by reason of situation that he could dispose of it once. There is
robbery. C and D would be liable for robbery only no crime of frustrated theft. (Valenzuela v. People,
since they conspired upon committing robbery only GR No. 160188, 2007)
– unless they were present with A and B and could
have prevented the killing, in which case they shall Q: How is Qualified Theft committed?
also be liable for Robbery with homicide even if they
did not actually kill B. (Art. 294(1), RPC) (DAMF)

1. If theft is committed by a Domestic servant; Q: X was the President and Chairman of the
2. If theft is committed with grave Abuse of Board of Trustees of Company A. X allowed his
confidence; son Y to tap into the electricity and water supply
3. If the property stolen is a Motor vehicle, mail of Company A. When X died, Z succeeded him
matter, large cattle, coconuts taken from the as President and filed a criminal complaint
premises of a plantation, or fish taken from a against Y for qualified theft, attended by the
fishpond or fishery ; or qualifying circumstance of grave abuse of
4. If property is taken on the occasion of Fire, confidence. Y argues that he was explicitly
earthquake, typhoon, volcanic eruption, or any allowed by X to use such electricity and water
other calamity, vehicular accident, or civil supply and no opposition was aired by anyone.
disturbance. (Art. 310, RPC as amended by RA Can Y be convicted with qualified theft?
120 and BP 71, 1980)
A: No. The elements of lack of owner's consent and
Q: X lives with his long-time girlfriend Y in a intent to gain are evidently absent in this case. First,
condominium in Makati. He has been secretly Y was permitted by X to tap into the electricity and
saving money in an envelope under their bed to water supply. As such, Y had no criminal intent to
buy her an engagement ring. One day, while Y appropriate the personal property as he acted on the
was cleaning their room, she found the faith of his father's authority, on behalf of Company
envelope, took the money, and left X. As A. There is no theft where the taker honestly and in
prosecutor, what crime, if any, would you charge good faith believes the property is his own or that of
Y? Explain. (2010 BAR) another, and that he has a right to take possession
of it for himself or for another". His bona fide belief
A: Y can be prosecuted for qualified theft. She took that he had authority from the real owner of the
away personal property belonging to another, electricity and water supply will not make him
without consent. The fact that this property was culpable of the crime of qualified theft because he
money supports a theory that she had intent to gain. was acting with a color of authority or a semblance
Furthermore, she committed this with grave abuse of right to do such act. Second, The Board of
of confidence, as she was trusted by X and they Trustees clothed X with such apparent authority to
shared a house together. However, Y can invoke act on behalf of Company A. By giving X apparent
Art. 332, which says that theft between spouses only authority, the Board of Trustees cannot now deny
gives rise to civil liability. As held in the case of and repudiate the legal effect of X’s consent to use
People v. Constantino, common-law spouses are the electricity and water supply. The element of lack
included in the term spouses, as used in Art. 332. of owner's consent is thus absent in this case. Thus,
(Art. 310, 332, RPC) the case should be dismissed. (People v. Delos
Santos, G.R. No. 220685, 2017)
Q: Forest Ranger A was patrolling a Watershed
when he noticed a big pile of cut logs outside the Q: While working as a housemaid, Respondent
gate. He then saw X & Y coming out of the gate X took her employer’s jewelry amounting to
with some more newly- cut logs. He more than P1 million. X claimed that she was
apprehended X & Y and charged them with the tricked into doing so via a phone call that her
proper offense. What is that offense? (2004 employer had gotten into an accident and
BAR) needed to be delivered to a third party. After
delivering the jewelry, she returned to her
A: The offense is qualified theft. Sec. 68 of PD 705 employer. Both the RTC and the CA convicted X
penalizes any person who directly or indirectly cuts, of the crime of Qualified Theft. X claims that her
gathers, removes, or smuggles timber, or other low educational attainment must be a basis to
forest products from any of the public forest. The presume that she was not fully aware of her
watershed is protected under the said law. (Sec. 68, actions. Furthermore, she maintains that her
P.D. 705) non- flight manifests her lack of intent to gain.
Decide.

A: No, her excuse that she was tricked cannot be 2. Offender Misappropriates or converts such
given credence, especially in view of the fact that money or property, or denies receipt of the
her employer had explicitly warned her against same;
scammers and to not entertain such calls. 3. Such misappropriation, conversion, or denial is
Jurisprudence provides that intent to gain can be to the Prejudice of another ; and
established through the overt acts of the offender, 4. There is Demand made by the offended party
and is presumed from the proven unlawful taking. to the offender. (Art. 315 (1)(b), RPC)
Actual gain is irrelevant. (People v. Manlao y
Laquila, G.R. No. 234023, 2018) Intent to defraud is not a necessary ingredient of
embezzlement under Art. 315(1)(b) of the RPC. It is
Q: Company V ordered diesel fuel from the breach of confidence or infidelity in the
Company U, owned by L. C is a truck driver conversion or diversion of trust funds that takes the
employed by L and was dispatched to deliver place of the usual element of fraud or deceit.
such diesel fuel to Company V. Later that day, it (Dayawon v. Judge Bautista, AM No. MTJ-00- 1309,
was found that Company V never received their 2000)
order. The NBI agents found the abandoned
lorry truck emptied of the diesel fuel. Under the Q: What are the elements of estafa by taking
foregoing premises, L filed a complaint against undue advantage of the signature in blank?
C for Qualified Theft. Is C guilty of the crime
Qualified Theft? (BDWD)
1. The paper with the offended party’s signature
A: Yes. It was sufficiently established that the diesel is in Blank;
fuel loaded into the truck driven by C for delivery to 2. The offended party Delivered the same to the
Company V was taken by him, without the authority offender;
and consent of L, the owner of the diesel fuel, and 3. The offender Wrote a document above the
that C abused the confidence reposed upon him by offended party’s signature without authority to
L, as his employer. (Candelaria v. People, G.R. No. do so; and
209386, 2014) 4. The document so written creates a liability of,
or causes Damage to the offended party or to
Q: What are the elements of estafa with third person/s. (Art. 315 (1)(c), RPC)
unfaithfulness?
Q: What are the ways of committing estafa by
(DAD) means of deceit?
1. Offender has an onerous obligation to Deliver
something of value; 1. By using fictitious name, or falsely pretending
2. He Alters its substance, quantity, or quality; to possess power, influence, qualification,
and property, credit, agency, business or imaginary
3. Damage or prejudice capable of pecuniary transactions, or by means of other similar
estimation is caused to the offended party or deceits;
third person/s. (Art. 315(1)(a), RPC) 2. By altering the quality, fineness, or weight of
anything pertaining to his art or business;
Q: What are the elements of estafa with abuse of 3. By pretending to have bribed any Government
confidence? employee;
4. By post-dating a check, or issuing a check in
(OMPD) payment of an obligation when the offender
1. Money, goods, or other personal property is had no funds in the bank or the funds were
received by the offender in trust, or on insufficient to cover the amount of the check.
commission, or for administration, or under any Failure to deposit the necessary amount within
other Obligation involving the duty to make 3 days from receipt of notice of dishonor from
delivery of, or to return the same; the bank and/or payee or holder shall be prima
facie evidence of the deceit (Art. 315(2), RPC)

NOTE: R.A. No. 10951 deleted paragraph 2(e) in allegation of X that it was Y who transacted with him
Art. 315 of the Code. Defrauding the victim by not on the phone is not reliable for lack of
paying for food, refreshment or accommodation is authentication. (People v. Wagas, G.R. No. 157943,
not anymore punishable as estafa under Art. 315, 2013)
but it shall constitute as other deceit under Art. 318
(Campanilla, 2020, p. 641) Q: What are the ways of committing estafa by
fraudulent means?
Q: X, an agent of an insurance company, was
convicted for the crime of estafa for allegedly 1. By inducing another to sign any document;
inducing Y to enter into a fraudulent investment 2. By resorting to some fraudulent practice to
opportunity. X made misrepresentations to Y insure success in a gambling game; or
that the latter’s money would be invested in the 3. By removing, concealing or destroying
insurance company and not to an investment documents. (Art. 315(3), RPC)
company. Was the conviction under Art.
315(2)(a) correct? Q: Can there be estafa through negligence?
A: No. X did not employ any deceit in soliciting Y’s A: No. There is no such crime as estafa through
investments because she did not use a fictitious negligence. In estafa, the profit or gain must be
name or pretend to possess, power, agency, or obtained by the accused personally, through his
certain qualifications, so that X’s acts do not fall own acts, and his mere negligence in allowing
under Art. 315 (2)(a). But she may be held liable for another to take advantage of or benefit from the
other deceits under Article 318, which is intended as entrusted chattel cannot constitute estafa. (People
a catch-all provision to cover all other kinds of deceit v. Nepomuceno, CA, 46 OG 6135, as cited by
not falling under Articles 315, 316, and 317 of the Reyes, Book 2)
Revised Penal Code. (Osorio v. People, G.R. No.
207711, 2018) Q: What are other forms of swindling?
Q: Petitioner X alleged that he had a telephone 1. Any person who, pretending to be owner of
conversation with Accused Y wherein Y agreed any real property, shall convey, sell, encumber
to issue a BPI check as payment for the goods Y or mortgage the same.
bought, but the check was dishonored due to 2. Any person, who, knowing that real property is
insufficiency of funds. On the contrary, Y encumbered, shall dispose of the same,
claimed that he issued the check to Z, his although such encumbrance be not recorded.
brother-in-law, that he did not have a telephone 3. The owner of any personal property who shall
conversation with X, and that it was Z who wrongfully take it from its lawful possessor, to
transacted with X proven by documents the prejudice of the latter or any third person.
showing that Z received the goods from X. Is 4. Any person who, to the prejudice of another,
proof beyond reasonable doubt established to shall execute any fictitious contract.
convict Y of the crime of estafa? 5. Any person who shall accept any
compensation given him under the belief that it
A: No. In order to constitute estafa, the act of was in payment of services rendered or labor
postdating or issuing a check in payment of an performed by him, when in fact he did not
obligation must be the efficient cause of the actually perform such services or labor.
defraudation. This means that the offender must be 6. Any person who, while being a surety in a bond
able to obtain money or property from the offended given in a criminal or civil action, without
party by reason of the issuance of the check, express authority from the court or before the
whether dated or postdated. The accused, to be cancellation of his bond or before being
guilty of estafa as charged, must have used the relieved from the obligation contracted by him,
check in order to defraud the complainant. What the shall sell, mortgage, or, in any other manner,
law punishes is the fraud or deceit, not the mere encumber the real property or properties with
issuance of the worthless check. Moreover, the

which he guaranteed the fulfillment of such prosecuted for estafa because the element of deceit
obligation. (Art. 316, RPC) is lacking. When the payee was informed that the
checks are not covered by adequate funds, bad faith
Q: X draws a check upon request of Y, the payee, or estafa shall not arise. (People v. Villanueva, G.R.
who told X that he would merely show the check No. 163662, 2015).
to his creditor to gain more time to pay his
account. The check bounced upon presentation Q: X was neither licensed nor authorized to
by the creditor. Under the circumstances, who recruit workers for employment abroad. X then
can be prosecuted for estafa based on the offered an employment opportunity abroad to Y.
dishonored check? (2011 BAR) X asked Y to provide documents and pay
placement fees to process the visa. However, Y
A: Y can be prosecuted for estafa as the one who never received the visa, and when he went to
negotiated the check contrary to the agreement look for X, could no longer find the latter. Is X
which resulted to the prejudice of the offended party. guilty of estafa?
The purpose of the issuance of the check was only
to show the check to the creditors and not to be used A: Yes. Estafa by means of deceit is committed
as payment. (Art. 315 (1)(b), RPC) when these elements concur: (a) the accused used
fictitious name or false pretense that he possesses
Q: Is the principal liable for estafa for power, influence, qualifications, property, credit,
appropriation of the proceeds of the sale agency, business or imaginary transactions, or other
through an agent without paying the agent’s similar deceits; (b) he used such deceitful means
commission? How is this case distinguished prior to or simultaneous with the commission of the
from failure of a lessee to return leased chattel fraud; (c) the offended party relied on such deceitful
at the termination of the lease? means to part with his money or property; and (d)
the offended party suffered damage. In this case, X
A: No, because there is no juridical transfer of defrauded Y by representing that he can provide
possession from the agent to the principal who is them with jobs abroad even though he had no
entitled to receive the full proceeds with the duty to license to recruit workers. He even collected
pay the agent for services rendered. The obligation irrelevant documents and placement fees.
to pay does not arise from any duty to deliver or Furthermore, Y could no longer locate X to recover
return the money to its supposed owner, but rather the amounts paid. Thus, X is guilty of estafa.
from the duty of a principal to give just compensation (People v. Racho y Somera, G.R. No. 227505,
to its agent for the services rendered by the latter. 2017)
On the other hand, even in the absence of a
fiduciary relationship, the lessee is obliged to return Q: X received several pieces of jewelry for sale
the chattel under lease to the lessor who originally on consignment from Y under the obligation that
had juridical possession which was transferred to X will remit the proceeds of the sale or if not
the lessee by virtue of the lease. Breach of the duty sold, to return them to Y after seven (7) days
to return constitutes estafa. (Murao, et. al. vs. from receipt of the same. However, X willfully
People, G.R. No. 141485, 2005) and unlawfully misappropriated the benefits to
her own personal use. When X failed to return
Q: What can the accused raise as a defense the proceeds and the jewelry, Y demanded the
when he is charged with estafa? same. X failed to do so and further argued that
her liability was only civil and not criminal. RTC
A: Estafa will not lie when the parties waive the found X guilty beyond reasonable doubt of the
negotiable character of a check, and instead treat crime of estafa defined and penalized under
the same as proof of an obligation. For instance, Article 315 (1)(b) of RPC. Should X be convicted
when there is an agreement between the parties at of estafa?
the time of the issuance and postdating of the
checks that the obligee shall not encash or present A: Yes, X is guilty of estafa. The facts clearly show
the same to the bank, the obligor cannot be the existence of all the elements of the crime

charged, considering that: (a) X received various charging Y of the crime of estafa defined and
pieces of jewelry from Y on a sale-on-consignment penalized under Art. 315(1)(b) of the RPC.
basis, as evidenced by the consignment document;
(b) X was under the obligation to either remit the Is Y guilty of three counts of estafa?
proceeds of the sale or return the jewelry after the
period of seven (7) days from receipt of the same; A: Yes. The essence of this kind of estafa is the
(c) X failed to perform her obligation, prompting Y to appropriation or conversion of money or property
demand compliance therewith; and (d) X failed to received to the prejudice of the entity to whom a
heed such demand, thereby causing prejudice to Y. return should be made. The words "convert" and
(Rivac v. People, G.R. No. 224673, 2018) "misappropriate" connote the act of using or
disposing of another's property as if it were one's
Q: What are the elements of estafa? own, or of devoting it to a purpose or use different
from that agreed upon. In proving the element of
A: The elements of estafa under Article 315 (1) (b) conversion or misappropriation, a legal presumption
of the RPC are as follows: of misappropriation arises when the accused fails to
1. the offender's receipt of money, goods, or deliver the proceeds of the sale or to return the items
other personal property in trust or on to be sold and fails to give an account of their
commission, or for administration, or under any whereabouts. Hence, Y is guilty of estafa defined
other obligation involving the duty to deliver or and penalized under Art. 315(1)(b). (Paz Cheng y
to return the same; Chu v. People; G.R. No. 174113, 2016)
2. misappropriation or conversion by the offender
of the money or property received, or denial of Q: X contracted the services of Y, a broker, for
receipt of the money or property; the sale of a share of stock. Y later introduced Z
3. the misappropriation, conversion or denial is to and they entered into a Deed of Absolute Sale.
the prejudice of another; and However, such sale was later annulled by the
4. demand by the offended party that the court. Thus, X returned to Z the sum of money
offender. (Rivac v. People, G.R. No. 224673, which the latter paid for the share, plus interest,
2018) and applied with the BIR for the refund of the
taxes paid for the annulled sale. Meanwhile, X
Q: X and Y entered into an agreement whereby requested Y for an accounting of the sum she
X shall deliver pieces of jewelry to Y for the latter received on behalf of X. In response, Y faxed
to sell on commission basis. After one month, Y documents. Examining the documents, X
is obliged to either: (a) remit the proceeds of the noticed a discrepancy in the faxed Capital Gains
sold jewelry; or (b) return the unsold jewelry to Tax Return: while the typewritten portion of the
the former. On different dates, X delivered Return indicated P1,480,000.00 as the capital
various sets of jewelry to Y. Upon the delivery of gains tax paid, the machine validation imprint
the last batch of jewelry, Y issued a check as full reflected only P80,000.00 as the amount paid.
security for the first two deliveries and as partial
security for the last. To clarify the discrepancy, X secured a certified
true copy of the Capital Gains Tax Return from
When Y failed to remit the proceeds or to return the BIR that reflected only P80,000.00 as the
the unsold jewelry on due date, X presented the capital gains tax paid for the sale of the share.
check to the bank for encashment, but was As a result, X demanded Y to properly account
dishonored due to insufficient funds. Upon for the P2,800,000.00 allegedly given to her for
assurance of Y, X re- deposited the check, but the payment of taxes and broker's fees, but to no
again, the same was dishonored because the avail.
drawee account had been closed. X then
decided to confront Y, who then uttered "Akala This led to the filing of an Information for the
mo, babayaran pa kita?" Thus, X was crime of estafa under Article 315, paragraph (1)
constrained to file three (3) separate Information (b) of the Revised Penal Code (RPC) against Y
before the RTC. The RTC and CA ruled that the

prosecution failed to establish that the elements no clear trade by which it can pay the assured profits
of estafa are present. The question is whether Y to its investors. Though not all proposals to invest in
can still be held liable for civil liability ex certain business ventures constitute fraud;
delicto? actionable fraud arose when X had knowledge that
the venture proposed would not reasonably yield the
A: No, Y cannot be held liable for civil liability ex promised results but, despite such knowledge,
delicto. When the element of misappropriation or deliberately continued with the misrepresentation. It
conversion is absent, there can be no estafa and became syndicated estafa because X was accused
concomitantly, the civil liability ex delicto does not alongside 5 or more people. (People v. Aquino, G.R.
exist. In estafa under Art. 315 (1)(b), the fraud which No. 234818, 2018)
the law considers as criminal is the act of
misappropriation or conversion. When the element Q: A was the Loans Bookkeeper of the Bank and
of misappropriation or conversion is missing, there she was authorized to collect and/or accept loan
can be no estafa. In such case, applying the payments of the Bank’s clients and issue
foregoing discussions on civil liability ex delicto, receipts therefor, and remit payments to her
there can be no civil liability as there is no act or supervisor. The Bank discovered that fraud and
omission from which any civil liability may be certain irregularities attended the same since
sourced. However, when an accused is acquitted there was non-remittance of some loan
because a reasonable doubt exists as to the payments. The Bank demanded an explanation
existence of misappropriation or conversion, then and to return the unremitted money involved. Is
civil liability may still be awarded. This means that, A guilty of estafa through misappropriation?
while there is evidence to prove fraud, such
evidence does not suffice to convince the court to A: No. The elements of estafa through
the point of moral certainty that the act of fraud misappropriation (Art 315 par. 1) are: a) the
amounts to estafa. As the act was nevertheless offender's receipt of money, goods, or other
proven, albeit without sufficient proof justifying the personal property in trust, or on commission, or for
imposition of any criminal penalty, civil liability administration, or under any other obligation
exists. (Estate of Honorio Poblador, Jr., involving the duty to deliver, or to return, the same;
Represented By Rafael A. Poblador V. Rosario L. (b) misappropriation or conversion by the offender
Manzano; G.R. No. 192391, 2017) of the money or property received, or denial of
receipt of the money or property; (c) the
Q: Private complainants allege that Respondent misappropriation, conversion or denial is to the
X, and other members of his company, prejudice of another; and (d) demand by the
convinced them to invest large sums of money offended party that the offender return the money or
into his company. The RTC found that X property received. Under the first element, there
fraudulently induced complainants to invest must also be juridical possession, which means a
their money, despite knowing that he is possession which gives the transferee a right over
prohibited from soliciting investments from the the thing which the transferee may set up even
general public. Furthermore, it was discovered against the owner.
that X issued checks representing the
investment of the complainants plus interest, In this case, A was merely a collector of loan
only for the checks to be dishonored upon payments from the Bank’s clients. The money
presentment for being drawn against closed merely passes into her hands and she takes custody
accounts. Is X guilty of the crime of syndicated thereof only for the duration of the banking day. The
estafa? sum of money received by A, is considered to be
only in her material possession, not juridical
A: Yes. X, along with other members of his possession. Hence, conversion of personal property
company, repeatedly induced the public to invest in in the case of an employee having mere material
his company on the undertaking that they would possession of the said property constitutes theft,
yield a huge percentage of returns. However, the whereas in the case of an agent to whom both
accused knew from the start that the company had material and juridical possession have been

transferred, misappropriation of the same property

constitutes Estafa. Lacking the first element of the Q: What are the exemptions from criminal
crime, A cannot be convicted of the crime Estafa. liability in crimes against property?
(Benabaye v. People, G.R. No. 203466, 2015.)
A: No criminal but only civil liability shall result from
Q: What are the special aggravating the commission of the crime of theft, swindling, or
circumstances in Arson? malicious mischief committed or caused mutually by
the following persons:
(IBSS) 1. Spouses, ascendants and descendants or
1. If committed with Intent to gain; relatives by affinity in the same line;
2. If committed for the Benefit of another; 2. The widowed spouse with respect to the
3. If the offender is motivated by Spite or hatred property which belonged to the deceased
towards the owner or occupant of the property spouse before the same shall have passed to
burned; the possession of another; and
4. If committed by a Syndicate (planned or carried 3. Brothers and sisters and brothers-in-law and
out by a group of 3 or more persons). (Sec. 4, sisters-in-law living together. (Art. 332, RPC)
PD 1613)
Q: What is the effect on the relationship after the
Q: What are the guidelines when death occurs death of one spouse?
on the occasion of arson?
A: Relationship by affinity between the surviving
A: Look at the offender’s main intent. spouse and the kindred of the deceased spouse
continues even after the death of the deceased
Intent was to burn the building Arson spouse, regardless of whether the marriage
● But death results by reason or produced children or not. (Carungcong v People and
on occasion of arson Sato GR. No. 181409, 2010)
● Homicide is absorbed.
—end of topic—
Intent was to kill Fire is used to kill Murder
a person the person
(becomes a J. CRIMES AGAINST CHASTITY
qualifying circ.)
Q: What are the elements of Adultery?
Fire is used to Arson
cover up the killing and A: Elements of Adultery:
Murder 1. That the woman is married (even if
(People v. Malngan, GR No. 170470, 2006) marriage is subsequently declared void);
2. That she has sexual intercourse with a man
Q: What are the special cases of malicious not her husband; and
mischief? 3. That as regards the man with whom she
has sexual intercourse, he must know her
A: (PPIP) to be married (Art. 333, RPC)
1. Causing Damage to obstruct performance of
Public functions; Q: Suspecting that her husband was having an
2. Using any Poisonous or corrosive substance; affair, Z hired a private investigator to spy on
3. Spreading any Infection or contagion among him. After two weeks, the private investigator
cattle; showed Z a video of her husband having sexual
4. Causing damage to the property of the intercourse with another woman in a room in a
National Museum or National Library or to any five star hotel. Based on what she saw in the
archive or registry, waterworks, road, video, Z accused her husband of concubinage.
promenade, or any other thing used in common Will the case prosper? Explain.
by the Public. (Art. 328, RPC)

A: No, there are only three ways to commit 2. Seduction of a sister by her brother, or
concubinage: seduction of a descendant by her
1. By keeping a mistress in the conjugal ascendant, regardless of her age or
dwelling; reputation (Incestuous Seduction)
2. Cohabiting with a woman not one’s wife in
any other place; and Q: What are the elements of forcible abduction?
3. Having sexual intercourse with a woman
not one’s wife under scandalous A: Art. 342, RPC
circumstances. 1. That the person abducted is any woman,
The husband committed none of these three acts by regardless of her age, civil status, or
having one instance of sexual intercourse with a reputation;
woman not his wife in the privacy of a hotel room. 2. That the abduction is against her will; and
Therefore, he cannot be charged with concubinage. 3. That the abduction is with lewd designs
(Art. 334, RPC)
—end of topic—
Q: What is the difference between acts of
lasciviousness and attempted rape?
K. CRIMES AGAINST THE CIVIL STATUS
ACTS OF ATTEMPTED OF PERSONS
LASCIVIOUSNESS RAPE
Offender’s lascivious Acts performed by Q: A and B were scheduled to marry each other
acts do not indicate offender clearly indicate but on the day of the wedding, the supposed
intent to have sexual that his purpose was to officiating priest refused to solemnize the
intercourse. lie with the offended marriage upon learning that the couple failed to
party.
secure a marriage license. A and B went to a
The lascivious acts The lascivious acts are different church and requested C to perform the
are the final objective but preparatory acts to ceremony. C agreed despite having been
sought by the the commission of rape. informed that the couple had no marriage
offender. license. C was charged with violation of Article
Manner of commission is the same
352 Performing an Illegal Ceremony. Will the
The performance of acts of lascivious character
case prosper?
is common to both.
Offended party is a person of either sex.
A: Yes. Art. 352 of the RPC penalizes an authorized
Q: In cases of acts of lasciviousness, is it solemnizing officer who shall perform or authorize
necessary that intimidation be irresistible? any illegal marriage ceremony. The elements are as
follows:
A: No. In cases of acts of lasciviousness, it is not 1. Authority of the solemnizing officer; and
necessary that intimidation be irresistible. It being 2. His performance of an illegal marriage
sufficient that some compulsion equivalent to ceremony
intimidation annuls or subdues the free exercise of Undoubtedly, the petitioner conducted a marriage
the will of the offended party. (Simbolon Jr v. ceremony despite knowledge that the essential and
People, GR No. 175888, 2009) formal requirements of marriage set by law were
lacking. The marriage ceremony, therefore, was
Q: What are the acts constituting qualified illegal. (Ronulo v. People, GR No. 182438, 2014)
seduction?
—end of topic—
A: Art. 334, RPC
1. Seduction of a virgin over 12 and under 18
years of age by certain persons, such as a L. CRIMES AGAINST HONOR
person in authority, priest, teacher, etc.;
Q: What are the cases where defamatory
and
imputations are not presumed malicious?

damage constitutes
A: Art. 354, RPC reckless imprudence.
1. Private communication in performance of
any legal, moral or social duty. —end of topic—
2. Fair and true report of official proceedings,
made in good faith, without any comments
and remarks
Q: Explain the doctrine of fair comment as a

defense in actions for libel or slander.
A: Fair commentaries on matters of public interest

are also qualifiedly privileged and constitute a valid
defense in an action for libel or slander.
—end of topic—
M. QUASI-OFFENSES
Q: What are the punishable acts for criminal

negligence?
A: Art. 365, RPC

1. By committing, through reckless imprudence,
any act which, had it been intentional, would
constitute a grave or less grave felony or light
felony;
2. By committing, through simple imprudence or
negligence, an act which would otherwise
constitute a grave or a less serious felony;
3. By causing damage to the property of another
through reckless imprudence or simple
imprudence or negligence; or
4. By causing, through simple imprudence or
negligence, some wrong which, if done
maliciously, would have constituted a light
felony
Q: Distinguish reckless imprudence from force

majeure.
RECKLESS FORCE
IMPRUDENCE MAJEURE
The immediate Pertains to events
personal harm or which could not be
damage to property is foreseen, or which,
perceivable and can be though foreseen, were
prevented by the inevitable. It implies an
exercise of reasonable extraordinary
care. The want of circumstance which is
reasonable care to independent of the will
prevent harm or of the actor.

III. SPECIAL PENAL LAWS b. To produce, direct, manufacture or create

any form of child pornography.
c. To publish, offer, transmit, sell, distribute,
A. ANTI-CHILD PORNOGRAPHY ACT OF broadcast, advertise, promote, export or
2009 (R.A. No. 9775) import any form of child pornography
d. To possess any form of child pornography
Q: Who is a child? with the intent to sell, distribute, publish, or
broadcast.
A: A child refers to any person before 18 or over but e. Willfully and intentionally providing a venue
is unable to fully take care of himself/herself from for the commission of prohibited acts.
abuse, neglect, cruelty, exploitation or f. Distribution of any form of child
discrimination because of a physical or mental pornography by film distributors, theaters
disability or condition. and telecommunication companies, by
themselves or in cooperation with other
A child is also: entities.
a. Any person regardless of age who is g. Assisting in any form of child pornography
presented, depicted or portrayed as a child; by a parent or guardian.
and, h. Engaging in luring or grooming.
b. Computer-generated, digitally or manually i. Engaging in pandering of any form of child
crafted images or graphics of a person who pornography.
is represented or who is made to appear to j. Willful access any form of child
be a child. pornography;
k. To conspire to commit any of the prohibited
Q: What is “child pornography”? acts stated in this section. Conspiracy to
commit any form of child pornography shall
A: "Child pornography" refers to any representation, be committed when two (2) or more
whether visual, audio, or written combination persons come to an agreement concerning
thereof, by electronic, mechanical, digital, optical, the commission of any of the said
magnetic or any other means, of child engaged or prohibited acts and decide to commit it; and
involved in real or simulated explicit sexual l. Possession of any form of child
activities. pornography.
Q: What is “Explicit Sexual Activity”? Q: When is the crime of child pornography
committed by syndicate?
A: This term includes actual or simulated –
A: The crime of child pornography is deemed
a. sexual intercourse or lascivious act committed by a syndicate if carried out by a group
including, but not limited to, contact of three (3) or more persons conspiring or
involving genital to genital, oral to genital, confederating with one another.
anal to genital, or oral to anal, whether
between persons of the same or opposite
—end of topic—
sex;
b. bestiality;
c. masturbation;
d. sadistic or masochistic abuse; B. ANTI-FENCING LAW OF 1979 (P.D. No.
e. lascivious exhibition of the genitals, 1612)
buttocks, breasts, pubic area and/or anus;
or Q: Who is a fence?
f. use of any object or instrument for
lascivious acts A: This includes any person, firm, association,
corporation or partnership or other organization
Q: What are the prohibited acts under the Anti- who/which commits the act of fencing.
Child Pornography Act ?
Q: What are the elements of fencing?
A: It shall be unlawful for any person:
a. To hire, employ, use, persuade, induce or 1. The crime of robbery or theft has been
coerce a child to perform in the creation or committed;
production of any form of child pornography 2. The accused, who is not the principal or
accomplice in the crime of robbery or theft,

buys, receives, possesses, keeps,

acquires, conceals, sells or disposes of, or A: Elective and appointive officials and employees,
shall buy and sell, or in any other manner whether permanent or temporary and whether in the
deal in any article, item, object or anything classified or unclassified or exempt service, and
of value, which has been derived from the receiving compensation from the government.
proceeds of the said crime;
3. The accused knows or should have known Q: What are the acts punishable under this law?
that the said article, item, object or anything
of value has been derived from the 1. Persuading, inducing or influencing
proceeds of the crime of robbery or theft; another public officer to perform an act
and, constituting a violation of rules and
4. There is, on the part of the accused, intent regulations duly promulgated by
to gain for himself or another. competent authority or an offense in
connection with the official duties of the
Q: What is the presumption of fencing and its
latter, or allowing himself to be persuaded,
exception?
induced, or influenced to commit such
A: The presumption is that mere possession of any violation or offense
good, article, object or anything of value which has a. Persuasion need not be
been subject of robbery or thievery shall be prima successful
facie evidence for fencing.
2. Directly or indirectly requesting or
The exception is when the person presumed to be a receiving any gift, present, share,
fence also possesses a clearance or a permit to sell percentage, or benefit, for himself or for
or use second-hand articles. any other person, in connection with any
contract or transaction between the
Q: What factors are considered when justifying Government and any other part, wherein
the presumption of fencing?
the public officer in his official capacity has
to intervene under the law
1. The time and place of the sale, both of
which may not be in accord with the usual a. This section refers to a public
practices of commerce; officer whose official intervention
2. The nature and condition of the goods sold; is required in a contract or
and, transaction
3. The fact that the seller is not regularly b. Lack of demand is immaterial
engaged in the business of selling goods. c. Clear intent of the public officer
taking the gift and considering it
as his or her own must be shown.
Q: Who shall be liable for the offense in cases of Mere physical receipt is not
juridical persons? enough.
A: If the fence is a partnership, firm, corporation or 3. Directly or indirectly requesting or receiving
association, the president or the manager or any any gift, present or other pecuniary or
officer thereof who knows or should have known the material benefit, for himself or for another,
commission of the offense shall be liable.
from any person for whom the public officer,
in any manner or capacity, has secured or
—end of topic—
obtained, or will secure or obtain, any
Government permit or license, in
C. ANTI-GRAFT AND CORRUPT consideration for the help given or to be
PRACTICES ACT (R.A. No. 3019, as given, without prejudice to Section thirteen
amended by R.A. No. 3047, P.D. No. of this Act.
677, P.D. No. 1288, B.P. Blg. 195 and
4. Accepting or having any member of his
R.A. No. 10910) family accept employment in a private
enterprise which has pending official
Q: What kind of government officials can be
business with him during the pendency
prosecuted under the Anti-Graft and Corruption
Act?

thereof or within one year after its unlawful, inequitable, or irregular

termination. transaction or acts by the board, panel or
group to which they belong.
5. Causing any undue injury to any party,
including the Government, or giving any 10. Knowingly approving or granting any
private party any unwarranted benefits, license, permit, privilege or benefit in favor
advantage or preference in the discharge of any person not qualified for or not legally
of his official administrative or judicial entitled to such license, permit, privilege or
functions through manifest partiality, advantage, or of a mere representative or
evident bad faith or gross inexcusable dummy of one who is not so qualified or
negligence. This provision shall apply to entitled.
officers and employees of offices or
government corporations charged with the 11. Divulging valuable information of a
grant of licenses or permits or other confidential character, acquired by his
concessions. office or by him on account of his official
position to unauthorized persons, or
6. Neglecting or refusing, after due demand or releasing such information in advance of its
request, without sufficient justification, to authorized release date.
act within a reasonable time on any matter
pending before him for the purpose of
obtaining, directly or indirectly, from any Q: Under RA 3019, what are the prohibitions on
person interested in the matter some the different kinds of individuals?
pecuniary or material benefit or advantage,
a. Private individuals: Any person having
or for the purpose of favoring his own
family or close personal relation with any
interest or giving undue advantage in favor
public official are prohibited from
of or discriminating against any other
capitalizing on, exploiting, or taking
interested party.
advantage of such relation
7. Entering, on behalf of the Government, into
b. Certain relatives: it shall be unlawful for
any contract or transaction manifestly and
the spouse or for any relative, by
grossly disadvantageous to the same,
consanguinity or affinity, within the
whether or not the public officer profited or
third civil degree, of
will profit thereby.
i. The President of the Philippines,
ii. The Vice-President of the
8. Director or indirectly having financing or
Philippines,
pecuniary interest in any business, contract
iii. The President of the Senate, or
or transaction in connection with which he
iv. The Speaker of the House of
intervenes or takes part in his official
Representatives
capacity, or in which he is prohibited by the
Constitution or by any law from having any to intervene, directly or indirectly, in any
interest. business, transaction, contract or
application with the Government.
9. Directly or indirectly becoming interested,
for personal gain, or having a material Note: the prohibition does not apply to:
interest in any transaction or act requiring
i. Any person who, prior to the
the approval of a board, panel or group of
assumption of office of any of the
which he is a member, and which exercises
above officials, has already been
discretion in such approval, even if he votes dealing with the Government
against the same or does not participate in ii. Any transaction, contract or
the action of the board, committee, panel or application already existing or
group. pending at the time of such
assumption of public office
Interest for personal gain shall be
iii. any application filed by him the
presumed against those public officers
approval of which is not discretionary
responsible for the approval of manifestly

on the part of the official or officials • in the case of a Head of Department or

concerned but depends upon chief of an independent office, with the
compliance with requisites provided Office of the President, or
by law, rules, or regulations • In the case of members of the Congress
iv. Any act lawfully performed in an and the officials and employees thereof,
official capacity or in the exercise of with the Office of the Secretary of the
a profession corresponding House (Sec. 7)
c. Members of Congress: It shall be unlawful
hereafter for any Member of the Congress Q: What is considered prima facie evidence of
during the term for which he has been and grounds for dismissal due to unexplained
elected, to acquire or receive any personal wealth?
pecuniary interest in any specific business
enterprise which will be directly and A: The following are prima facie evidence of and
particularly favored or benefited by any law grounds for dismissal due to unexplained wealth if
or resolution authored by him previously any public official is found:
approved or adopted by the Congress • To have acquired during his incumbency,
during the same term. an amount of property and/or money
manifestly out of proportion to his income;
Also applies to any other public officer who • Properties in the name of the spouse and
recommended the initiation in Congress of dependents of such public official may be
the enactment or adoption of any law or taken into consideration; or
resolution and acquires or receives such • Bank deposits in the name of or manifestly
interest excessive expenditures incurred by the
public official or any of their dependents.
Q: What is a statement of assets and liabilities
(SALN)?
Q: Must the prosecution of a violation of RA 3019
A: A true detailed and sworn statement of assets proceed independently of a violation of the
and liabilities, including
AMLA?
• a statement of the amounts and sources of
his income, A: The prosecution of any offense or violation under
• the amounts of his personal and family the AMLA shall proceed independently of any
expenses and proceeding relating to the unlawful activity.
• the amount of income taxes paid for the
next preceding calendar year. —end of topic—
Q: When is the SALN filed?

D. ANTI-HAZING ACT OF 2018 (R.A. No.
A: The SALN is filed 8049, as amended by R.A. No. 11053)
• after assuming office, and within the month
of January of every other year thereafter; Q: What is hazing?
• upon the expiration of his term of office, or
upon his resignation or separation from A: Hazing is:
office;
1. Any act that results in physical or
• public officers assuming office less than
psychological suffering, harm, or injury;
two months before the end of the calendar
2. Inflicted on a recruit, neophyte, applicant,
year, may file their statements in the
or member as part of an initiation rite or
following months of January.
practice made as a prerequisite for
admission or a requirement for continuing
Q: To whom is the SALN submitted?
membership in a fraternity, sorority, or
A: The SALN is submitted to: organization;
• The office of the corresponding Department 3. Including, but not limited to, paddling,
Head, or whipping, beating, branding, forced
calisthenics, exposure to the weather,
forced consumption of any food, liquor,

beverage, drug or other substance, or any 1. A written application to conduct initiation

other brutal treatment or forced physical rites shall be made to the proper authorities
activity which is likely to adversely affect the of the school not later than seven (7) days
physical and psychological health of such prior to the conduct of initiation;
recruit, neophyte, applicant, or member; 2. The written application must indicate:
and, a. Place and date of the initiation
4. Additionally, hazing includes any activity, rites;
intentionally made or otherwise, by one b. Names of the recruits, neophytes
person alone or acting with others, that or applicants to be initiated;
tends to humiliate or embarrass, degrade, c. Manner by which they will conduct
abuse, or endanger, by requiring a recruit, the initiation rites; and,
neophyte, applicant, or member to do d. Names of the incumbent officers of
menial, silly, or foolish tasks. (Sec. 2) the fraternity, sorority, or
organization and any person or
Q: What are initiation rites? persons who will take charge in the
conduct of the initiation rites.
A: It refers to ceremonies, practices, rituals, or other 3. The application shall be under oath with a
acts, whether formal or informal, that a person must
declaration that it has been posted in the
perform or take part in order to be accepted into a
fraternity, sorority, or organization as a full-fledged official school bulletin board, the bulletin
member. board of the office of the fraternity, sorority,
or organization, AND two (2) other
It includes ceremonies, practices, rituals, and other conspicuous places in the school or in the
acts in all stages of membership in a fraternity, premises of the organization.
sorority, or organization. 4. The application shall be posted from the
time of submission of the written notice to
Q: What are the acts not considered hazing? the school authorities or head of
organization and shall only be removed
A: The acts not considered as hazing are: from its posting three (3) days after the
conduct of the initiation rites;
1) Tests, trainings, practices and procedures
5. The initiation rites shall not last more than
employed for prospective regular members
three (3) days; and,
of the Armed Forces of the Philippines
6. There are at least two (2) representatives
(AFP) and Philippine National Police
of the school present during the initiation.
(PNP), as approved by the Secretary of
National Defense and the National Police Q: Who are the persons liable as principals for
Commission duly recommended by the hazing?
Chief of Staff of AFP and the Director
General of PNP; A: The persons liable as principals for the crime of
2) Similar procedures and practices approved hazing are:
by the respective heads of other uniformed
learning institutions as to their prospective 1. All persons who actually planned OR
members; and, participated in the conduct of the hazing;
3) Any customary athletic events or other 2. All incumbent and former officers,
similar contests and competitions, or any nonresident members, or alumni of the
activity or conduct that furthers a legal and fraternity, sorority or organization who are
legitimate objective, subject to prior actually present during the hazing;
submission of a medical clearance or 3. The adviser of the fraternity, sorority or
certificate. organization who is –
a. Present when the acts
Q: What are the requisites for school-based constituting the hazing were
initiation rites to not constitute hazing? committed; and
b. Failed to take action to prevent
A: School based initiation rites do not constitute the same; or,
hazing as long as c. Failed to promptly report the
same to the law enforcement

authorities, if such adviser or b. Have actual knowledge, but failed to

adviser or advisers can do so take any action to prevent the same; or,
without peril to their person or c. Failed to promptly report the same if they
their family. can do so without peril to their person or
4. Officers or members who knowingly their family.
cooperated in carrying out the hazing by
inducing the victim to be present thereat; —end of topic—
5. Members who are present during the
hazing when they are intoxicated or under E. ANTI-MONEY LAUNDERING ACT OF
the influence of alcohol or illegal drugs; 2001 (R.A. No. 9160)
6. Any person who shall intimidate, threaten,
force, or employ, or administer any form of Q: What is money laundering?
vexation against another person for the
purpose of recruitment in joining or A: Money laundering is a crime whereby the
promoting a particular fraternity, sorority, proceeds of an unlawful activity are transacted,
or organization. thereby making them appear to have originated from
a. The persistent and repeated legitimate sources.
proposal or invitation made to a
person who had twice refused to Q: What are the covered institutions under the
participate or join the proposed AMLA?
fraternity, sorority, or organization,
shall be prima facie evidence of A: The following are covered institutions under the
vexation. AMLA:
7. Owner or lessee of the place where hazing
1. banks, non-banks, quasi-banks, trust
is conducted, when he has actual
entities, and all other institutions and their
knowledge of the hazing but failed to take
subsidiaries and affiliates supervised or
action to prevent the same, OR failed to
regulated by the Bangko Sentral ng
promptly report the same if they can do so
Pilipinas (BSP);
without peril to their person or their family;
2. Insurance companies and all other
8. Parents if held in the home of one of the
institutions supervised or regulated by the
officers or members of the fraternity,
Insurance Commission;
group, or organization, when they have
3. (i) securities dealers, brokers, salesmen,
actual knowledge the hazing conducted
investment houses and other similar
but failed to take any action to prevent the
entities managing securities or rendering
same OR failed to promptly report the
services as investment agent, advisor, or
same if they can do so without peril to their
consultant, (ii) mutual funds, close and
person or their family.
investment companies, common trust
9. The presence of any person, even if such
funds, pre-need companies and other
person is not a member of the fraternity,
similar entities, (iii) foreign exchange
sorority, or organization, during the hazing
corporations, money changers, money
is prima facie evidence of participation
payment, remittance, and transfer
therein as a principal,
companies and other similar entities, and
a. unless such person or persons
(iv) other entities administering or
prevented the commission of the
otherwise dealing in currency, commodities
acts punishable, or promptly
or financial derivatives based thereon,
reported the same to the law
valuable objects, cash substitutes and
enforcement authorities if they
other similar monetary instruments or
can do so without peril, to their
property supervised or regulated by
person or their family.
Securities and Exchange Commission;
Q: Who are liable as accomplices for hazing? 4. Jewelry dealers in precious metals, who, as
a business, trade in precious metals, for
A: School authorities, barangay, municipal or city transactions in excess of P1,000,000.00;
officials shall be held liable as accomplice if:
a. They have consented to the hazing; or

5. jewelry dealers in precious stones, who, as c. Section 3 paragraphs B, C, E, G, H and I of

a business, trade in precious stones, for RA 3019, as amended, or the Anti-Graft
transactions in excess of P1,000,000.00; and Corrupt Practices Act;
6. company service providers which, as a d. Plunder under RA 7080, as amended;
business, provide any of the following e. Robbery and extortion under Articles 294,
services to third parties: (i) acting as a 295, 296, 299, 300, 301 and 302 of the
formation agent of juridical persons; (ii) RPC, as amended;
acting as (or arranging for another person f. Jueteng and Masiao punished as illegal
to act as) a director or corporate secretary gambling under PD 1602;
of a company, a partner of a partnership, or g. Piracy on the high seas under RPC, as
a similar position in relation to other juridical amended and PD 532;
persons; (iii) providing a registered office, h. Qualified theft under Article 310 of the RPC,
business address or accommodation, as amended;
correspondence or administrative address i. Swindling under Article 315 and Other
for a company, a partnership or any other Forms of Swindling under Article 316 of the
legal person or arrangement; and (iv) RPC, as amended;
acting as (or arranging for another person j. Smuggling under RA 455 and RA 1937;
to act as) a nominee shareholder for k. Violations of RA 8792 or the Electronic
another person; and Commerce Act of 2000;
7. persons who provide any of the following l. Hijacking and other violations under RA
services: (i) managing of client money, 6235; destructive arson and murder, as
securities or other assets; (ii) management defined under the RPC, as amended;
of bank, savings or securities accounts; (iii)
m. Terrorism and conspiracy to commit
organization of contributions for the
terrorism as defined and penalized under
creation, operation or management of
Sections 3 and 4 of RA 9372;
companies; and (iv) creation, operation or
n. Financing of terrorism under Section 4 and
management of juridical persons or
offenses punishable under Sections 5, 6, 7
arrangements, and buying and selling
and 8 of RA 10168, or the Terrorism
business entities. (Sec. 1, RA 10365)
Financing Prevention and Suppression Act
Q: Who are excluded from the definition of of 2012:
covered persons? o. Bribery under Articles 210, 211 and 211-A
of the RPC, as amended, and Corruption of
A: The term ‘covered persons’ shall exclude lawyers Public Officers under Article 212 of the
and accountants acting as independent legal RPC, as amended;
professionals in relation to information concerning p. Frauds and Illegal Exactions and
their clients or where disclosure of information would Transactions under Articles 213, 214, 215
compromise client confidences or the attorney-client and 216 of the RPC as amended;
relationship: Provided, that these lawyers and q. Malversation of Public Funds and Property
accountants are authorized to practice in the
under Articles 217 and 222 of the RPC, as
Philippines and shall continue to be subject to the
provisions of their respective codes of conduct amended;
and/or professional responsibility or any of its r. Forgeries and Counterfeiting under Articles
amendments. 163, 166, 167, 168, 169 and 176 of the
RPC, as amended;
Q: What are the unlawful activities under the s. Violations of Sections 4 to 6 of RA. 9208, or
AMLA? the Anti-Trafficking in Persons Act of 2003;
t. Violations of Sections 78 to 79 of Chapter
A: Unlawful activities refer to any act or omission or IV, of PD 705, or the Revised Forestry
series or combination thereof involving or having Code of the Philippines, as amended;
relation to the following: u. Violations of Sections 86 to 106 of Chapter
a. Kidnapping for ransom under RPC, as VI, of RA 8550, or the Philippine Fisheries
amended; Code of 1998;
b. Sections 4, 5, 6, 8, 9, 10, 11, 12, 13, 14, 15 v. Violations of Sections 101 to 107, and 110
and 16 of RA 9165 or the Comprehensive of RA 7942, or the Philippine Mining Act of
Dangerous Drugs Act of 2002; 1995;

w. Violations of Section 27(c), (e), (f), (g) and d. attempts or conspires to commit money
(i), of RA 9147, or the Wildlife Resources laundering offenses referred to in
Conservation and Protection Act; paragraphs (a), (b) or (c);
x. Violation of Section 7(b) of RA 9072, or the e. aids, abets, assists in or counsels the
National Caves and Cave Resources commission of the money laundering
Management Protection Act; offenses referred to in paragraphs (a), (b)
y. Violation of RA 6539, or the Anti- or (c) above; and performs or fails to
Carnapping Act of 2002, as amended; perform any act as a result of which he
z. Violations of Sections 1, 3 and 5 of PD facilitates the offense of money laundering
1866, as amended, or the decree Codifying referred to in paragraphs (a), (b) or (c)
the Laws on Illegal/Unlawful Possession, above; or
Manufacture, Dealing In, Acquisition or f. Any covered person who, knowing that a
Disposition of Firearms, Ammunition or covered or suspicious transaction is
Explosives; required under this Act to be reported to the
aa. Violation of PD 1612, otherwise known as Anti-Money Laundering Council (AMLC),
the Anti-Fencing Law; fails to do so.
bb. Violation of Section 6 of RA 8042, or the
Migrant Workers and Overseas Filipinos Q: What is the effect of the Bank Deposit
Act of 1995, as amended by Republic Act Secrecy Law on AMLA?
No. 10022;
cc. Violation of RA 8293, or the Intellectual A: When reporting covered transactions to the Anti-
Property Code of the Philippines; Money Laundering Council, covered institutions and
their officers, employees, representatives, agents,
dd. Violation of Section 4 of RA 9995, or the
advisors, consultants or associates shall not be
Anti-Photo and Video Voyeurism Act of deemed to have violated Republic Act No. 1405, as
2009; amended; Republic Act No. 6426, as amended;
ee. Violation of Section 4 of RA 9775, or the Republic Act No. 8791 and other similar laws. (Sec.
Anti-Child Pornography Act of 2009; 9, RA 9160)
ff. Violations of Sections 5, 7, 8, 9, 10(c), (d)
and (e), 11, 12 and 14 of RA 7610, or the Covered persons and their officers and employees
Special Protection of Children Against are prohibited from communicating, directly or
Abuse, Exploitation and Discrimination; indirectly, in any manner or by any means, to any
gg. Fraudulent practices and other violations person or entity, the media, the fact that a covered
or suspicious transaction has been reported or is
under RA 8799, or the Securities
about to be reported, the contents of the report, or
Regulation Code of 2000; and any other information in relation thereto. Neither
hh. Felonies or offenses of a similar nature that may such reporting be published or aired in any
are punishable under the penal laws of manner or form by the mass media", electronic mail,
other countries. or other similar devices. In case of violation thereof,
the concerned officer and employee of the covered
Q: Who is liable for the crime of money person and media shall be held criminally liable.
laundering?
—end of topic—
A: Money laundering is committed by any person
who, knowing that any monetary instrument or
property represents, involves, or relates to the
proceeds of any unlawful activity:
a. transacts said monetary instrument or
property;
b. converts, transfers, disposes of, moves,
acquires, possesses or uses said monetary
instrument or property;
c. conceals or disguises the true nature,
source, location, disposition, movement or
ownership of or rights with respect to said
monetary instrument or property;

F. ANTI-PHOTO AND VIDEO VOYEURISM or recording of sexual act or any similar

ACT OF 2009 (R.A. No. 9995) activity with or without consideration;
c. To sell or distribute, or cause to be sold or
Q: What is photo or video voyeurism? distributed, such photo or video or
recording of sexual act, whether it be the
A: Photo or video voyeurism is: original, copy or reproduction thereof; or
1. The taking photo or video coverage of a d. To publish or broadcast, or cause to be
person or group of persons performing published or broadcast, whether in print or
sexual act or any similar activity or of broadcast media, or show or exhibit the
capturing an image of the private area of a photo or video coverage or recordings of
person or persons without the latter's such sexual act or any similar activity
consent, under circumstances in which through VCD/DVD, internet, cellular
such person/s has/have a reasonable phones and other similar means or device.
expectation of privacy, or
2. The act of selling, copying, reproducing, The prohibition under paragraph (b), (c), and (d)
broadcasting, sharing, showing or shall apply notwithstanding that consent to record or
exhibiting the photo or video coverage or take photo or video coverage of the same was given
recordings of such sexual act or similar by such person/s.
activity through VCD/DVD, internet, cellular
phones and similar means or device —end of topic—
without the written consent of the person/s
involved, notwithstanding that consent to
G. ANTI-PLUNDER ACT (R.A. No. 7080,
record or take photo or video coverage of
as amended by R.A. No. 7659)
same was given by such person/s.
Q: What is ill-gotten wealth?
Q: What are circumstances in which a person
has a reasonable expectation of privacy?
A: ill-gotten wealth refers to any asset, property,
A: These are circumstances in which a reasonable business enterprise or material possession of any
person would believe that he/she could disrobe in person, acquired by him directly or indirectly
privacy, without being concerned that an image or a through dummies, nominees, agents,
private area of the person was being captured; or subordinates and/or business associates by any
circumstances in which a reasonable person would combination or series of the following means or
believe that a private area of the person would not similar schemes:
be visible to the public, regardless of whether that
person is in a public or private place. 1) Through misappropriation, conversion,
misuse, or malversation of public funds
Q: Under the Anti-Photo and Video Voyeurism
or raids on the public treasury;
Act, what are the prohibited acts?
2) By receiving, directly or indirectly, any
A: Any person who commits the following shall be commission, gift, share, percentage,
liable for photo or video voyeurism: kickbacks or any other form of pecuniary
a. To take photo or video coverage of a benefit from any person and/or entity in
person or group of persons performing connection with any government contract
sexual act or any similar activity or to or project or by reason of the office or
capture an image of the private area of a position of the public officer concerned;
person/s such as the naked or 3) By the illegal or fraudulent conveyance or
undergarment clad genitals, pubic area, disposition of assets belonging to the
buttocks or female breast without the National Government or any of its
consent of the person/s involved and under subdivisions, agencies or
circumstances in which the person/s instrumentalities or government-owned
has/have a reasonable expectation of or -controlled corporations and their
privacy; subsidiaries;
b. To copy or reproduce, or to cause to be 4) By obtaining, receiving or accepting
copied or reproduced, such photo or video directly or indirectly any shares of stock,

equity or any other form of interest or

participation including promise of future Q: When shall the crime of plunder prescribe?
employment in any business enterprise A: The crime of plunder shall prescribe in twenty
or undertaking; (20) years.
5) By establishing agricultural, industrial or
commercial monopolies or other The right of the State to recover properties
unlawfully acquired by public officers from them or
combinations and/or implementation of
from their nominees or transferees shall not be
decrees and orders intended to benefit
barred by prescription, laches, or estoppel.
particular persons or special interests; or
6) By taking undue advantage of official
—end of topic—
position, authority, relationship,
connection or influence to unjustly enrich
himself or themselves at the expense H. ANTI-TORTURE ACT OF 2009 (R.A.
and to the damage and prejudice of the No. 9745)
Filipino people and the Republic of the
Philippines. Q: What are the elements of torture?
Q: Differentiate a series from a combination
1. Any act by which severe physical or
under the Anti-Plunder Act.
mental pain or suffering;
2. Is inflicted by or at the instigation of or with
A: A combination refers to at least two (2) acts falling the consent or acquiescence of a person
under different categories of enumeration provided in authority or his agent;
in the definition of “ill-gotten wealth.” A series, on the 3. Intentionally inflicted on a person;
other hand, refers to two (2) or more overt or criminal 4. For the purpose of:
acts falling under the same category of enumeration a. Obtaining information or a
found in the definition of “ill-gotten wealth.” confession;
b. Punishment for an act he or a
Q: What is a pattern under the Anti-Plunder Act? third person has committed, or is
suspected of having committed;
A: It consists of at least a combination or series of c. Intimidation or coercion; and
overt or criminal acts enumerated under the d. Any reason based on
definition of “ill-gotten wealth,” directed towards a discrimination of any kind. (Sec.
common purpose or goal which is to enable the 3)
public officer to amass, accumulate or acquire ill-
gotten wealth. There must either be an “overall Q: What is physical torture?
unlawful scheme” or “conspiracy” to achieve said
common goal. A: It is a form of treatment or punishment inflicted by
a person in authority or agent of a person in authority
Q: What are the elements of the crime of upon another in his/her custody that causes severe
plunder? pain, exhaustion, disability or dysfunction of one or
more parts of the body, such as:
a. That the offender is a public officer who a. Systematic beating, headbanging,
acts by himself or in connivance with punching, kicking, striking with truncheon
members of his family, relatives by affinity or rifle butt or other similar objects, and
or consanguinity, business associates, jumping on the stomach;
subordinates, or other persons; b. Food deprivation or forcible feeding with
b. That he amassed, accumulated or acquired spoiled food, animal or human excreta and
ill-gotten wealth through a combination or other stuff or substances not normally
series using the means or similar scheme eaten;
enumerated under the definition of “ill- c. Electric shock;
gotten wealth” above; and d. Cigarette burning; burning by electrically
c. That the aggregate amount or total value of heated rods, hot oil, acid; by the rubbing of
the ill-gotten wealth amassed, accumulated pepper or other chemical substances on
or acquired is at least P50,000,000.00. mucous membranes, or acids or spices
(Sec. 12, RA 7659) directly on the wound(s);

e. The submersion of the head in water or h. Causing the torture sessions to be

water polluted with excrement, urine, vomit witnessed by the person’s family, relatives
and/or blood until the brink of suffocation; or any third party;
f. Being tied or forced to assume fixed and i. Denial of sleep/rest;
stressful bodily position; j. Shame infliction such as stripping the
g. Rape and sexual abuse, including the person naked, parading him/her in public
insertion of foreign objects into the sex places, shaving the victim’s head or putting
organ or rectum, or electrical torture of the marks on his/her body against his/her will;
genitals; k. Deliberately prohibiting the victim to
h. Mutilation or amputation of the essential communicate with any member of his/her
parts of the body such as the genitalia, ear, family; and
tongue, etc.; l. Other analogous acts of
i. Dental torture or the forced extraction of the mental/psychological torture. (Sec. 4)
teeth;
j. Pulling out of fingernails;
k. Harmful exposure to the elements such as Q: What is cruel, inhuman, degrading treatment
sunlight and extreme cold; or punishment?
l. The use of plastic bag and other materials
placed over the head to the point of A: It refers to a deliberate and aggravated
asphyxiation; treatment or punishment not enumerated under
m. The use of psychoactive drugs to change Section 4 of this Act, inflicted by a person in authority
the perception, memory, alertness or will of or agent of a person in authority against another
a person, such as: person in custody, which attains a level of severity
sufficient to cause suffering, gross humiliation or
• The administration of drugs to
induce confession and/or reduce debasement to the latter. (Sec 5)
mental competency; or Q: How do you assess the level of severity of a
• The use of drugs to induce punishment?
extreme pain or certain symptoms
of a disease; and A: The assessment of the level of severity shall
n. Other analogous acts of physical torture. depend on all the circumstances of the case,
(Sec. 4) including the duration of the treatment or
punishment, its physical and mental effects and, in
Q: What is Mental or Psychological Torture? some cases, the sex, religion, age and state of
health of the victim. (Sec. 5)
A: It refers to acts committed by a person in
authority or agent of a person in authority which are Q: Who may be held liable for torture?
calculated to affect or confuse the mind and/or
undermine a person’s dignity and morale, such as: A: The following shall be held criminally liable for the
a. Blindfolding; crime of torture:
b. Threatening a person(s) or his/her
relative(s) with bodily harm, execution or a. Liable as principals –
other wrongful acts; 1. Any person who actually participated
c. Confinement in solitary cells or secret or induced another in the commission
detention places; of torture or other cruel, inhuman and
d. Prolonged interrogation; degrading treatment or punishment or
e. Preparing a prisoner for a “show trial”, who cooperated in the execution of the
public display or public humiliation of a act of torture or other cruel, inhuman
detainee or prisoner; and degrading treatment or
f. Causing unscheduled transfer of a person punishment by previous or
deprived of liberty from one place to simultaneous acts
another, creating the belief that he/she
shall be summarily executed; 2. Any superior military, police or law
g. Maltreating a member/s of a person’s enforcement officer or senior
family; government official who issued an

order to any lower ranking personnel to act of torture or other cruel, inhuman
commit torture for whatever purpose and degrading treatment or
punishment.
3. The immediate commanding officer of
the unit concerned of the AFP or the The accessory acts should be done with the
immediate senior public official of the abuse of the official’s public functions. (Sec. 13)
PNP and other law enforcement
agencies for any act or omission, or
Q: What is the policy of the law when it comes to
negligence committed by him/her that
secret detention places?
shall have led, assisted, abetted or
allowed, whether directly or indirectly,
A: Secret detention places, solitary confinement,
the commission thereof by his/her
incommunicado or other similar forms of detention,
subordinates
where torture may be carried out with impunity are
If he/she has knowledge of or, owing to the hereby prohibited.
circumstances at the time, should have known
The PNP, AFP and other law enforcement agencies
that acts of torture or other cruel, inhuman and
degrading treatment or punishment shall be concerned shall make an updated list of all detention
centers and facilities under their respective
committed, is being committed, or has been
jurisdictions with the corresponding data on
committed by his/her subordinates or by others
prisoners or detainees incarcerated or detained
within his/her area of responsibility and, despite
therein. This list shall be available to the public at all
such knowledge, did not take preventive or
times and updated by the same agencies every 5
corrective action either before, during or
days of the month at the minimum. (Sec. 7)
immediately after its commission, when he/she
has the authority to prevent or investigate Q: Are pieces of evidence obtained as a result of
allegations of torture or other cruel, inhuman torture admissible?
and degrading treatment or punishment but
failed to prevent or investigate allegations of A: Generally, they are inadmissible pursuant to the
such act, whether deliberately or due to exclusionary rule. Any confession, admission or
negligence shall also be liable as principals. statement obtained as a result of torture shall be
inadmissible in evidence in any proceedings (Sec
b. Liable as accessory – Any public officer or 8).
employee shall be liable as an accessory if
he/she has knowledge that torture or other Q: Are there instances when the evidence
cruel, inhuman and degrading treatment or obtained as a result of torture considered
punishment is being committed and without admissible?
having participated therein, either as
principal or accomplice, takes part A: Yes, If the same is used as evidence against a
subsequent to its commission in any of the person or persons accused of committing torture.
following manner: (Sec. 8).
1. By themselves profiting from or Q: What is the refouler rule?

assisting the offender to profit from the
effects of the act of torture or other A: No person shall be expelled, returned or
cruel, inhuman and degrading extradited to another State where there are
treatment or punishment; substantial grounds to believe that such person
shall be in danger of being subjected to torture.
2. By concealing the act of torture or other
cruel, inhuman and degrading For the purposes of determining whether such
treatment or punishment and/or grounds exist, the Secretary of the Department of
destroying the effects or instruments Foreign Affairs (DFA) and the Secretary of the DOJ,
thereof in order to prevent its in coordination with the Chairperson of the CHR,
discovery; or shall take into account all relevant considerations
including, where applicable and not limited to, the
3. By harboring, concealing or assisting existence in the requesting State of a consistent
in the escape of the principals in the pattern of gross, flagrant or mass violations of
human rights. (Sec. 17)

payments or benefits to achieve the

Q: Can torture be absorbed as an element of consent of a person having control over
committing another crime? another person; and
e. For the purpose of exploitation which
A: Torture as a crime shall not absorb or shall not includes at a minimum, the exploitation or
be absorbed by any other crime or felony committed the prostitution of others or other forms of
as a consequence, or as a means in the conduct or sexual exploitation, forced labor or
commission thereof. It shall be treated as a separate services, slavery, servitude or the removal
and independent criminal act whose penalties shall or sale of organs.
be imposable without prejudice to any other criminal
liability provided for by domestic and international
The recruitment, transportation, transfer, harboring
laws. (Sec. 15)
or receipt of a child for the purpose of exploitation
Q: Can the Revised Penal Code be applied in the shall also be considered as “trafficking in persons”
application of the Anti-Torture Act? even if it does not involve any of the means set forth
in the preceding paragraph. (Sec. 3).
A: The provisions of the Revised Penal Code insofar Q: What acts are punishable under the Anti-
as they are applicable shall be suppletory to this Act. Trafficking in Persons Act?
Moreover, if the commission of any crime
punishable under Title Eight (Crimes Against
A: It shall be unlawful for any person, natural or
Persons) and Title Nine (Crimes Against Personal
juridical, to commit any of the following acts:
Liberty and Security) of the Revised Penal Code is
attended by any of the acts constituting torture and
a. To recruit, obtain, hire, provide, offer,
other cruel, inhuman and degrading treatment or
punishment as defined herein, the penalty to be transport, transfer, maintain, harbor, or
imposed shall be in its maximum period. (Sec. 22) receive a person by any means, including
those done under the pretext of domestic or
—end of topic— overseas employment or training or
apprenticeship, for the purpose of
prostitution, pornography, or sexual
I. ANTI-TRAFFICKING IN PERSONS ACT exploitation;
(R.A. No. 9208) b. To introduce or match for money, profit, or
material, economic or other consideration,
Q: Who is considered a child under the Anti- any person or, as provided for under
Trafficking in Persons Act? Republic Act No. 6955, any Filipino woman
to a foreign national, for marriage for the
A: A person below eighteen (18) years of age or one purpose of acquiring, buying, offering,
who is over eighteen (18) but is unable to fully take selling or trading him/her to engage in
care of or protect himself/herself from abuse, prostitution, pornography, sexual
neglect, cruelty, exploitation, or discrimination exploitation, forced labor, slavery,
because of a physical or mental disability or involuntary servitude or debt bondage;
condition. c. To offer or contract marriage, real or
simulated, for the purpose of acquiring,
Q: What are the elements of Trafficking in
buying, offering, selling, or trading them to
Persons?
engage in prostitution, pornography, sexual
exploitation, forced labor or slavery,
a. Recruitment, transportation, transfer or
involuntary servitude or debt bondage;
harboring, or receipt of persons;
d. To undertake or organize tours and travel
b. With or without the victim’s consent or
plans consisting of tourism packages or
knowledge;
c. Within or across national borders; activities for the purpose of utilizing and
d. By means of threat or use of force, or offering persons for prostitution,
other forms of coercion, abduction, fraud, pornography or sexual exploitation;
deception, abuse of power or of position, e. To maintain or hire a person to engage in
taking advantage of the vulnerability of the prostitution or pornography;
person, or, the giving or receiving of f. To adopt persons by any form of
consideration for exploitative purposes or

to facilitate the same for purposes of 4. The use, procuring or offering of a child
prostitution, pornography, sexual for illegal activities or work which, by its
exploitation, forced labor, slavery, nature or the circumstances in which it
involuntary servitude or debt bondage; is carried out, is likely to harm their
g. To adopt or facilitate the adoption of health, safety or morals; and
persons for the purpose of prostitution, 5. To organize or direct other persons to
pornography, sexual exploitation, forced commit the offenses defined as acts of
labor, slavery, involuntary servitude or debt trafficking under this Act. (Sec. 4)
bondage;
h. To recruit, hire, adopt, transport, transfer, Q: What is the penalty for violating the Anti-
obtain, harbor, maintain, provide, offer, Torture Act?
receive or abduct a person, by means of
threat or use of force, fraud, deceit, A: Any person found guilty of committing any of the
violence, coercion, or intimidation for the acts enumerated above shall suffer the penalty of
purpose of removal or sale of organs of said imprisonment of twenty (20) years and a fine of not
person; less than P1,000,000.00 but not more than
i. To recruit, transport, obtain, transfer, P2,000,000.00. (Sec. 10(a))
harbor, maintain, offer, hire, provide,
receive or adopt a child to engage in armed Q: What is attempted trafficking?
activities in the Philippines or abroad;
j. To recruit, transport, transfer, harbor, A: Where there are acts to initiate the
obtain, maintain, offer, hire, provide or commission of a trafficking offense but the
receive a person by means defined in offender failed to or did not execute all the
Section 3 of this Act for purposes of forced elements of the crime, by accident or by reason
labor, slavery, debt bondage and of some cause other than voluntary desistance,
involuntary servitude, including a scheme, such overt acts shall be deemed as an attempt to
plan, or pattern intended to cause the commit an act of trafficking in persons. As such, an
person either: To believe that if the person attempt to commit any of the offenses enumerated
did not perform such labor or services, he in Section 4 of this Act shall constitute attempted
or she or another person would suffer trafficking in persons.
serious harm or physical restraint; or
k. law or the legal processes; and Q: When the victim is a child, what acts are
l. To recruit, transport, harbor, obtain, considered attempted trafficking?
transfer, maintain, hire, offer, provide,
adopt or receive a child for purposes of A: Any of the following acts shall also be deemed
exploitation or trading them, including but as attempted trafficking in persons where victim
not limited to, the act of baring and/or is a child:
selling a child for any consideration or for a. Facilitating the travel of a child who travels
barter for purposes of exploitation. alone to a foreign country or territory
Trafficking for purposes of exploitation of without valid reason therefor and without
children shall include: the required clearance or permit from the
1. All forms of slavery or practices similar Department of Social Welfare and
to slavery, involuntary servitude, debt Development, or a written permit or
bondage and forced labor, including justification from the child’s parent or legal
recruitment of children for use in armed guardian;
conflict; b. Executing, for a consideration, an affidavit
2. The use, procuring or offering of a child of consent or a written consent for adoption;
for prostitution, for the production of c. Recruiting a woman to bear a child for the
pornography, or for pornographic purpose of selling the child;
performances; d. Simulating a birth for the purpose of selling
3. The use, procuring or offering of a child the child; and
for the production and trafficking of e. Soliciting a child and acquiring the custody
drugs; and thereof through any means from among
hospitals, clinics, nurseries, daycare

centers, refugee or evacuation centers, and distribution by any means, including the
low-income families, for the purpose of use of information technology and the
selling the child. (Sec. 4-A) internet, of any brochure, flyer, or any
propaganda material that promotes
Q: Who are considered accomplices in trafficking in persons;
Trafficking in Persons? d. To assist in the conduct of
misrepresentation or fraud for purposes of
A: Whoever knowingly aids, abets, cooperates in facilitating the acquisition of clearances and
the execution of the offense by previous or necessary exit documents from
simultaneous acts defined in this Act shall be government agencies that are mandated to
punished in accordance with the provisions of provide pre-departure registration and
Section 10(c) services for departing persons for the
purpose of promoting trafficking in persons;
Q: Who are considered accessories in e. To facilitate, assist or help in the exit and
Trafficking in Persons? entry of persons from/to the country at
international and local airports, territorial
A: Whoever has the knowledge of the commission boundaries and seaports who are in
of the crime, and without having participated therein, possession of unissued, tampered or
either as principal or as accomplices, take part in its fraudulent travel documents for the
commission in any of the following manners: purpose of promoting trafficking in persons;
f. To confiscate, conceal, or destroy the
1. By profiting themselves or assisting the passport, travel documents, or personal
offender to profit by the effects of the crime; documents or belongings of trafficked
2. By concealing or destroying the body of the persons in furtherance of trafficking or to
crime or effects or instruments thereof, in prevent them from leaving the country or
order to prevent its discovery; seeking redress from the government or
3. harboring, concealing or assisting in the appropriate agencies;
escape of the principal of the crime, g. To knowingly benefit from, financial or
provided the accessory acts with abuse of otherwise, or make use of, the labor or
his or her public functions or is known to be services of a person held to a condition of
habitually guilty of some other crime. involuntary servitude, forced labor, or
slavery.
Q: What are the acts that promote or facilitate h. To tamper with, destroy, or cause the
trafficking? destruction of evidence, or to influence or
attempt to influence witnesses, in an
A: The following acts which promote or facilitate investigation or prosecution of a case under
trafficking in persons, shall be unlawful: this Act;
a. To knowingly lease or sublease, use or i. To destroy, conceal, remove, confiscate or
allow to be used any house, building or possess, or attempt to destroy, conceal,
establishment for the purpose of promoting remove, confiscate or possess, any actual
trafficking in persons; or purported passport or other travel,
b. To produce, print and issue or distribute immigration or working permit or document,
unissued, tampered or fake counseling or any other actual or purported
certificates, registration stickers, overseas government identification, of any person in
employment certificates or other order to prevent or restrict, or attempt to
certificates of any government agency prevent or restrict, without lawful authority,
which issues these certificates, decals and the person’s liberty to move or travel in
such other markers as proof of compliance order to maintain the labor or services of
with government regulatory and pre- that person; or
departure requirements for the purpose of j. To utilize his or her office to impede the
promoting trafficking in persons; investigation, prosecution or execution of
c. To advertise, publish, print, broadcast or lawful orders in a case under this Act. (Sec.
distribute, or cause the advertisement, 5)
publication, printing, broadcasting or

Q: When is Trafficking in Persons qualified? possession of knowledge or information about

trafficking in persons cases.
A: The following are considered as qualified
trafficking: Q: Who may file a case?
a. When the trafficked person is a child;
b. When the adoption is effected through A: Any person who has personal knowledge of the
Republic Act No. 8043, otherwise known as commission of any offense under this Act, such as
the “Inter-Country Adoption Act of 1995” the trafficked person, the parents, spouse, siblings,
and said adoption is for the purpose of children or legal guardian may file a complaint for
prostitution, pornography, sexual trafficking.
exploitation, forced labor, slavery,
involuntary servitude or debt bondage; Q: What is the effect of an affidavit of desistance
c. When the crime is committed by a executed by the victim and his parents?
syndicate, or in large scale. Trafficking is
deemed committed by a syndicate if carried A: Cases involving trafficking in persons should not
out by a group of three (3) or more persons be dismissed based on the affidavit of desistance
conspiring or confederating with one executed by the victims or their parents or legal
another. It is deemed committed in large guardians. Public and private prosecutors are
scale if committed against three (3) or more directed to oppose and manifest objections to
persons, individually or as a group; motions for dismissal. (Sec. 8).
d. When the offender is a spouse, an
ascendant, parent, sibling, guardian or a Q: What is the prescriptive period for Trafficking
person who exercises authority over the in Persons?
trafficked person or when the offense is
committed by a public officer or employee; A: Trafficking cases under this Act shall prescribe in
e. When the trafficked person is recruited to ten (10) years.
engage in prostitution with any member of
the military or law enforcement agencies; Trafficking cases committed by a syndicate or in a
f. When the offender is a member of the large scale, or against a child, shall prescribe in
military or law enforcement agencies; twenty (20) years.
g. When by reason or on occasion of the act
of trafficking in persons, the offended party Q: When shall the prescriptive period
dies, becomes insane, suffers mutilation or commence to run?
is afflicted with Human Immunodeficiency
Virus (HIV) or the Acquired Immune A: The prescriptive period shall commence to run
Deficiency Syndrome (AIDS); from the day on which the trafficked person is
h. When the offender commits one or more delivered or released from the conditions of
violations of Section 4 over a period of sixty bondage, or in the case of a child victim, from the
(60) or more days, whether those days are day the child reaches the age of majority, and
continuous or not; and shall be interrupted by the filing of the complaint or
i. When the offender directs or through information and shall commence to run again when
another manages the trafficking victim in the proceedings terminate without the accused
carrying out the exploitative purpose of being convicted or acquitted or are unjustifiably
trafficking. (Sec. 6). stopped for any reason not imputable to the
accused. (Sec. 12).
Q: When shall law enforcement agents
investigate Trafficking in Persons cases? Q: Can trafficked persons incur criminal liability
for acts committed in furtherance of the acts
A: Law enforcement agencies are mandated to punishable under the Anti-Trafficking in
immediately initiate investigation and counter- Persons Act?
trafficking-intelligence gathering upon receipt of
statements or affidavit from victims of trafficking, A: Trafficked persons shall not be penalized for
migrant workers, or their families who are in unlawful acts committed as a direct result or
incident, or in-elation to being trafficked enumerated

in this act. In this regard, the consent of a trafficked deliberate intent, with intent to gain, did then
person to the intended exploitation set forth in this and there hire and/or recruit Y, a minor, 17 years
Act shall be irrelevant. old and Z for the purpose of prostitution and
sexual exploitation, by acting as their procurer
Victims of trafficking for purposes of prostitution as for different customers, for money, profit, or any
defined under Section 4 of this Act are not covered other consideration. The accused, X, testified
by Article 202 of the Revised Penal Code and as that while she was walking outside, two men
such, shall not be prosecuted, fined, or otherwise asked her if she knew someone named “A,” but
penalized under the said law. (Sec. 17). she replied that she only knew a certain “Y.” The
two men said that they were actually looking for
Q: Is the past sexual behavior of a victim of Y, gave her a piece of paper with a number on it,
trafficking relevant? and told her to tell Y to bring companions. When
X arrived home, she contacted Y. Y convinced
A: The past sexual behavior or the sexual her to come because allegedly, she would be
predisposition of a trafficked person shall be given money by the two males. The RTC found
considered inadmissible in evidence for the purpose X guilty beyond reasonable doubt. The Court of
of proving consent of the victim to engage in sexual Appeals likewise affirmed the same. X argued
behavior, or to prove to predisposition, sexual or that Y admitted to her that she was already
otherwise, of a trafficked person. engaged in prostitution, and therefore led X to
conclude that Y was predisposed to having sex
Q: Does the mere act of referring some for with customers for money. Can X’s argument
employment abroad be considered trafficking? prosper?
A: Given the broad definition of recruitment and A: No. Under Sec. 3(a) of R.A. 9208, trafficking in
placement, even the mere act of referring someone persons can still be committed even if victim gives
for placement abroad can be considered consent. The victim’s consent is rendered
recruitment. Such act of referral, in connivance with meaningless due to coercive, abusive, or deceptive
someone without the requisite authority or POEA means employed by perpetrators of human
license, constitutes illegal recruitment. In its simplest trafficking. R.A. 9208 further defines what qualifies
terms, illegal recruitment is committed by persons the crime of trafficking in persons, and one of them
who, without authority from the government, give the is when trafficked person is a child. The crime has
impression that they have the power to send been consummated for the mere “transaction” i.e.
workers abroad for employment purposes. that ‘solicitation’ for sex and handling over of the
“bust money” already consummated the act.
Lalli, Aringoy and Relampagos have conspired and
confederated with one another to recruit and place Q: Officer X went undercover in a KTV Bar where
Lolita for work in Malaysia without a POEA license. prostitution was rampant. Y approached officer
The three elements of syndicated illegal recruitment X and offered special services to be given by Z
are present in this case: in exchange for money. Z was a minor. Officer X
1. The accused have no valid license or accepted the agreement and hailed a cab for Z
authority required by law to lawfully and himself to head to a motel. Before arriving
engage in recruitment and placement of in the motel Z asked for the payment in
workers; exchange for the special services which Officer
2. The accused engaged in recruitment and X complied with, however shortly after he asked
place by actually recruiting, deploying, and the taxi to stop and introduced himself as an
transporting Lolita to Malaysia; and, Officer. He went back to the KTV Bar and
3. Illegal recruitment was committed by three arrested Y. In the defense of, Y she claimed that
persons, conspiring and confederating Z has given consent to conduct the interaction
with one another. (People v. Lalli, G.R. No. therefore absolving her from liability. Is Y still
195419, 2011) guilty?
A: Yes. Under Republic Act No. 10364, the
Q: An Information was filed against X, charging elements of trafficking in persons have been
her for violating R.A. 9208 Sec. 4(a), qualified by expanded to include the following acts:
Sec. 6(a). The Information states that: X, with

1. The act of "recruitment, obtaining, hiring, indispensable in the crime of trafficking in persons.
providing, offering, transportation, transfer, Neither is his identity relevant. It is sufficient that the
maintaining, harboring, or receipt of accused has lured, enticed, or engaged its victims
persons with or without the victim's consent or transported them for the established purpose of
or knowledge, within or across national exploitation, which was sufficiently shown by the
borders trafficked person's testimony alone.
2. The means used include "by means of —end of topic—

threat, or use of force, or other forms of
coercion, abduction, fraud, deception,
abuse of power or of position, taking J. ANTI-VIOLENCE AGAINST WOMEN
advantage of the vulnerability of the AND THEIR CHILDREN ACT OF 2004
person, or, the giving or receiving of (R.A. No. 9262)
payments or benefits to achieve the
consent of a person having control over Q: What is the battered woman syndrome?
another person
A: Battered woman syndrome refers to a
3. The purpose of trafficking includes "the scientifically defined pattern of psychological and
exploitation or the prostitution of others or behavioral symptoms found in women living in
battering relationships as a result of cumulative
other forms of sexual exploitation, forced
abuse. Victims-survivors suffering from battered
labor or services, slavery, servitude or the woman syndrome do not incur any criminal and
removal or sale of organs[.]" civil liability notwithstanding the absence of any of
the elements for justifying circumstances of self-
Here, Y was charged with having violated qualified defense under the RPC (Secs. 3 &26)
trafficking in relation to Section 4 (e) of Republic Act
No. 9208, which provides that it is unlawful for Q: What are the stages of the cycle of violence?
anyone to maintain or hire a person to engage in
prostitution or pornography. A: The stages of the cycle of violence are: 1)
Tension building phase; 2) Acute Battering Incident;
The court held that the victim’s consent is rendered AND 3) Tranquil, loving phase (non-violent phase)
(People v. Genosa, G.R. No. 135981, 2004)
meaningless due to the coercive, abusive, or
deceptive means employed by perpetrators of NOTE: In the determination of the state of mind of
human-trafficking. Even without the use of coercive, the woman who was suffering from battered woman
abusive, or deceptive means, a minor’s consent is syndrome at the time of the commission of the
not given out of his or her own free will. Y took crime, the courts shall be assisted by expert
advantage of the vulnerability of Z as a minor. Z ‘s psychiatrists and psychologists. (Sec. 26)
acquiescence to the transaction cannot be a valid
defense. Q: What are the different types of violence that
can be committed against women and children?
Q: The RTC found X of the crime of trafficking in
persons punished under Section 4(a) of Anti- [PEPS]
1. Physical violence - Refers to acts that
Trafficking in Persons, giving credence to the
include bodily or physical harm
testimony of A, whom X recruited to have sex
with Z, who was designated as a confidential 2. Sexual violence - Refers to an act which is
police asset, for P500. The CA affirmed the sexual in nature, committed against a
conviction of X. X argues that the prosecution woman or her child
failed to prove his guilt beyond reasonable 3. Psychological violence - Refers to acts or
doubt as Z, the confidential informant was not omissions causing or likely to cause mental
able to give a testimony, thus raising doubt on or emotional suffering of the victim such as
whether petitioner truly offered A to Z. Is X’s but not limited to intimidation, harassment,
argument tenable? stalking, damage to property, public ridicule
or humiliation, repeated verbal abuse and
A: No. The Court denied X’s contention. The marital infidelity. It includes causing or
testimony of the confidential informant is not

allowing the victim to witness the physical, a. whether legitimate or illegitimate,

sexual, or psychological abuse of a within or without the family abode.
member of the family to which the victim (Sec. 3(a))
belongs, or to witness pornography in any
form or to witness abusive injury to pets or Q: What are the different protection orders
to unlawful or unwanted deprivation of the granted under the law?
right to custody and/or visitation of common
A: The different protection orders are:
children.
1. Barangay Protection Order (BPO) -
4. Economic abuse - Refers to acts that make
Issued by punong barangay, after ex parte
or attempt to make a woman financially
determination of the basis of the
dependent (Sec. 3(a))
application, which orders perpetrator to
desist from committing acts under Section
Q: What are the acts of violence against women
and their children? 5 (1) and (2) of this Act
[CTA-ICO-SRA] Effective for fifteen (15) days.

1. Causing physical harm to the woman or her
child; 2. Temporary Protection Order (TPO) -
2. Threatening to cause physical harm to a Issued by the court on the date of filing of
woman or her child; the application after ex parte determination
3. Attempting to cause physical harm to a that such order should be issued.
woman or her child;
Effective for at least a period of thirty (30)
4. Placing a woman or her child in fear of
days and may be extended by order of the
Imminent physical harm; court. The court shall schedule a hearing on
5. Attempting to Compel a woman or child the issuance of a PPO prior to or on the
from engaging in conduct they have a right date of the expiration of the TPO.
to desist from, or restrict them from conduct
they have a right to engage in; 3. Permanent Protection Order (PPO) -
6. Inflicting or threatening to inflict physical Issued by the court after notice and
harm to Oneself to control their action or hearing.
decisions
Effective until revoked by a court upon
7. Causing or Attempting to cause them to
application of the person in whose favor the
engage in Sexual activity, not rape, thru order was issued (Sec. 14-16).
force, physical harm, or intimidation;
8. Engaging in purposely Reckless conduct Q: X and Y have a common child together but
that causes them substantial emotional or they are not married. X cheated on Y, so they
psychological distress; broke up. X was charged and convicted of a
9. Causing them mental or emotional violation of the VAWC law on economic abuse,
Sec. 5(e) of R.A. 9262, since he was not
Anguish, public ridicule, or humiliation.
complying with the order of the court to give
(Sec. 5) support to his illegitimate son with Y, X says that
since the information alleged that the acts
Q: Against whom are the said violent acts complained of caused mental or emotional
committed? anguish, public ridicule, or humiliation to Y and
the son. The conviction is improper since those
A: Said violent acts are committed against are elements to be alleged in relation to Sec. 5(i)
1. A woman: instead. Is the conviction correct?
a. who is his wife;
b. who is former wife, or A: Yes, the conviction under Sec. 5(e) of the VAWC
c. with whom the person has or had Law is proper. Economic abuse may include the
deprivation of support of a common child of the man-
a sexual or dating relationship, or
accused and woman-victim, whether the common
d. with whom he has a common child child is legitimate or not. The deprivation of financial
2. The woman’s child support is considered the act of violence against

women and children. The act of denying support to talkie or tape recorder, or however
a child is a continuing offense. otherwise described;
Sec. 5(i) classifies economic abuse as a form of b. be he a participant or not in the act or acts
psychological violence. R.A. 9262 punishes the act penalized in the next preceding sentence,
of causing mental or emotional anguish, public to knowingly possess any tape record,
ridicule, or humiliation to the woman and her child wire record, disc record, or any other such
including emotional and verbal abuse as well as the record, or copies thereof, of any
denial of financial support. The prosecution showed communication or spoken word secured
that X deprived Y and the child of support, no either before or after the effective date of
evidence was adduced to show the deprivation
this Act in the manner prohibited by this
caused either of them any mental or emotional
law;
anguish. Conviction under Sec. 5(e) is proper since
the element of psychological violence is already c. to replay the same for any other person/s;
specifically penalized therein. (Melgar v. People,
G.R. No. 223477, Feb. 14. 2018) d. to communicate the contents thereof, either
verbally or in writing, or to furnish
Q: An information was filed charging X, transcriptions thereof, whether complete or
husband, of committing psychological abuse partial, to any other person; or,
under the VAWC. This information was based on
the fact that X committed marital fidelity with a e. to willfully or knowingly do or aid, permit, or
woman in Singapore. X filed a Motion to Quash, cause to be done any of the acts under the
alleging that he cannot be held liable for a above-items (a) to (d) or any order issued
criminal act committed outside the Philippines.
thereunder, or aids, permits, or causes
Is the husband’s argument correct?
such violation. (Secs. 1 and 2)
A: No. Philippine Courts may exercise territorial Q: When is Wiretapping allowed?
jurisdiction over violations of VAWC if one of the
essential elements occurred in the Philippines. In A: Nothing under this Act shall render it unlawful or
this case, while the psychological violence was punishable for any peace officer, authorized by a
employed in Singapore, the mental anguish – written order of the Court, to execute any of the
another essential element– occurred in the acts declared to be unlawful above in cases
Philippines as this element is personal to the victim involving the following crimes:
(who is situated in the Philippines). (AAA v. BBB, a. Treason;
2018)
b. Espionage;
c. Provoking war and disloyalty in case of war;
—end of topic—
d. Piracy;
e. Mutiny in the high seas;
K. ANTI-WIRETAPPING ACT (R.A. No. f. Rebellion;
4200) g. Conspiracy and proposal to commit
rebellion, inciting to rebellion;
Q: What are Prohibited Acts under the Anti-Wire h. Sedition, conspiracy to commit sedition,
Tapping Act? inciting to sedition;
i. Kidnapping as defined by the Revised
A: It shall unlawful for any person to commit any of Penal Code; and,
the following acts: j. Violations of Commonwealth Act No. 616,
punishing espionage and other offenses
a. Not being authorized by all the parties to against national security. (Sec. 3)
any private communication or spoken word,
to tap any wire or cable, or by using any Q: What are the requisites for the issuance of the
other device or arrangement, to secretly written order?
overhear, intercept, or record such
communication or spoken word by using a A: The written order shall only be issued or granted–
device commonly known as a dictaphone a. Upon written application and the
or dictagraph or detectaphone or walkie- examination under oath or affirmation of the

applicant and the witnesses he may judicial, legislative or administrative hearing or

produce; investigation. (Sec. 4).
b. That there are reasonable grounds to
believe that any of the crimes enumerated Q: Is it necessary that the person being
above has been committed or is being punished be a party to the communication?
committed or is about to be committed; A: No, The Act clearly and unequivocally makes it
illegal for any person, not authorized by all the
In cases involving the offenses of rebellion,
parties to any private communication to secretly
conspiracy and proposal to commit
record such communication by means of a tape
rebellion, inciting to rebellion, sedition,
recorder. The law makes no distinction as to
conspiracy to commit sedition, and inciting
whether the party sought to be penalized by the
to sedition, such authority shall be granted
statute ought to be a party other than or different
only upon prior proof that a rebellion or acts
from those involved in the private communication.
of sedition, as the case may be, have
(Ramirez v. Court of Appeals, G.R. No. 93833,
actually been or are being committed.
1995).
c. That there are reasonable grounds to
believe that evidence will be obtained Q: Is an extension telephone covered by the
essential to the conviction of any person Anti-Wiretapping Act?
for, or to the solution of, or to the
prevention of, any such crimes; and A: An extension telephone cannot be placed in the
d. that there are no other means readily same category as a dictaphone, dictagraph or the
available for obtaining such evidence. other devices enumerated in Section 1 of RA No.
4200 as the use thereof cannot be considered as
The written order of the Court granted or issued "tapping" the wire or cable of a telephone line.
shall specify – Hence, the phrase "device or arrangement" in
a. identity of the person or persons whose Section 1 of RA No. 4200, although not exclusive to
communications, conversations, that enumerated therein, should be construed to
discussions, or spoken words are to be comprehend instruments of the same or similar
overheard, intercepted, or recorded and, in nature, that is, instruments the use of which would
be tantamount to tapping the main line of a
the case of telegraphic or telephonic
telephone. It refers to instruments whose installation
communications, the telegraph line or the or presence cannot be presumed by the party or
telephone number involved and its location; parties being overheard because, by their very
b. identity of the peace officer authorized to nature, they are not of common usage and their
overhear, intercept, or record the purpose is precisely for tapping, intercepting or
communications, conversations, recording a telephone conversation. (Gaanan v.
discussions, or spoken words; Intermediate Appellate Court, G.R. No. L-69809,
c. offense or offenses committed or sought to 1986)
be prevented; and
d. the period of the authorization. —end of topic—
The authorization shall be effective for the period

specified in the order which shall not exceed sixty L. BOUNCING CHECKS LAW (B.P. Blg.
(60) days from the date of issuance of the order, 22)
UNLESS extended or renewed by the court upon
being satisfied that such extension or renewal is in Q: What are the punishable acts under the
the public interest. Bouncing Check Law?
Q: Are pieces of evidence obtained in violation A: With insufficient funds upon making or drawing
of the Anti-Wiretapping Act admissible? and issuing check
A: Any communication or spoken word, or the With sufficient funds upon making or drawing and
existence, contents, substance, purport, effect, or issuing, but failed to keep the funds.
meaning of the same or any part thereof, or any
information therein contained, obtained or secured Q: What are the elements of the said punishable
by any person in violation of this Act shall not be acts?
admissible in evidence in any judicial, quasi-

a. With insufficient funds upon making or possession of the subject vehicle to X, wherein
drawing and issuing check (Sec. 1, par. 1) the ownership of the vehicle will only be
transferred to X after full payment of the vehicle
1. Any person makes or draws and issues a to ABC Corporation. X issued 34 post-dated
check to apply on account or for value; checks to ABC Corp for payment of the vehicle,
2. Knowledge of the maker, drawer or issuer wherein the corporation deposited the said
that he does not have sufficient funds in checks to Bank B. 11 out of the 34 checks where
the drawee bank for the payment of such honored, the rest were dishonored due to being
check in full upon its presentment; drawn from insufficient funds. ABC Corporation
sent demand letters to X but such demand
3. The (a) subsequent dishonor of the check remained unheeded. Thus the corporation filed
by the drawee bank for insufficiency of multiple counts of violations of B.P. 22 against
funds or credit, OR (b) dishonor for the X. X argues that he never received a notice of
same reason had not the drawer, without dishonor and she only knew of the dishonor of
any valid cause, ordered the bank to stop said checks when she received a complaint.
payment; ABC Corporation on the otherhand argues that
X admitted that she received a demand letter
4. The payee or holder of the dishonored during the pre-trial conference, but such
check gives a written notice of dishonor admission was not put into writing. The RTC
and demand for payment; and, acquitted the accused because the corporation
failed to prove that X received a notice of
5. After receipt of the written notice and
demand, refuses or fails to pay the value dishonor. The Court of Appeals reversed the
acquittal. W/N the CA was correct on reversing
of the check within five (5) banking days.
(Bax v. People, G.R. No. 149858, 2007). the acquittal?
b. With sufficient funds upon making or A: It appears in this case that the agreement or
drawing and issuing, but failed to keep the admissions made or entered during the preliminary
conference were not reduced in writing and signed
funds (Sec. 1, par. 2)
by the accused and her counsel, hence, such
1. Any person makes or draws and issues a agreement or admissions cannot be used against
check to apply on account or for value; the accused. This being the case, any agreement or
admissions made and entered during the
2. He had sufficient funds in or credit with the preliminary conference which was not signed by the
drawee bank upon making or drawing and accused and her counsel cannot be used against
issuing the check; said accused. Because the receipt of a notice of
dishonor could not be proved which is one of the
3. Failure to keep sufficient funds or to
key elements for proving a violation of B.P.22 in
maintain a credit to cover the full amount
this case because the admissions in this case of
of the check, if presented within 90 days
X could not be used due to it not being put in
from the date appearing thereon;
writing and signed by the counsel and approved
4. The drawee bank dishonors the check for by the court, the CA was incorrect on reversing the
such reason; acquittal of the accused. (Mandagan v. Jose Valero
Corporation, G.R. No. 215118, June 19, 2019)
5. The payee or holder of the dishonored
check gives a written notice of dishonor Q: What is the effect if a check is presented and
and demand for payment; and, dishonored within 90 days from its issuance?
6. After receipt of the written notice and

demand, refuses or fails to pay the value A: The making, drawing and issuance of a check
of the check within five (5) banking days. which is refused by the drawee because of
insufficient funds in or credit with such bank, when
Q: ABC Corporation entered into a lease-to-own presented within ninety (90) days from the date of
arrangement with Bank B for a vehicle wherein the check, shall be prima facie evidence of
they agreed that the Bank B will remain as the knowledge of such insufficiency of funds or credit.
registered owner of the subject vehicle until full
payment. Later ABC Corporation gave the

Q: When will the presentation of a dishonored refusal written, printed or stamped on it,
check within 90 days from its issuance not give with the reason therefore, shall be prima
to a prima facie evidence of knowledge of facie evidence of the making, issuance and
insufficiency of funds? presentment for payment of the said check
to the drawee, as well as its proper
dishonor for the reason written on said
A: If the maker or drawer: check. (Sec. 3)
a. Pays the holder thereof the amount due Q: What are the defenses available against BP
thereon; or, 22?
b. Makes arrangements for payment in full by a. The check was issued as payment of a
the drawee of such check within five (5) warranty deposit paid by an
banking days after receiving notice that accommodating party (respondent/private
such check has not been paid by the complainant) as required under the lease-
drawee. (Sec. 2). purchase agreement, with the latter not
ripening into a purchase but remaining a
lease with rentals. To charge the accused
Q: Is notice to the drawer necessary in order for
for the refund of a "warranty deposit" which
the prima facie presumption of knowledge of
he did not withdraw as it was not his own
insufficiency of funds to arise?
account, it having remained with LS
Finance, is to even make him pay an unjust
A: Yes, If such notice of non-payment by the drawee
bank is not sent to the maker or drawer of the check, "debt", to say the least, since petitioner
or if there is no proof as to when such notice was (accused) did not receive the amount in
received by the drawer, then the presumption or question. (Magno v. CA, G.R. No. 96132,
prima facie evidence cannot arise, since there would 1992)
simply be no way of reckoning the crucial 5-day b. The required notice of dishonor has not
period. been given. The drawer should be given a
notice of dishonor to give him the
Thus, this Court further ruled in King, "in order to opportunity to make good the value of the
create the prima facie presumption that the issuer
check within 5 banking days.
knew of the insufficiency of funds, it must be shown
that he or she received a notice of dishonor and, c. The dishonor of the check was not due to
within five banking days thereafter, failed to satisfy insufficiency of funds. If reason for dishonor
the amount of the check or make arrangement for is other than insufficiency of funds, such as
its payment." (Chua vs. People, G.R. No. 196853, failure of consideration, BP 22 is not
2015). violated.
d. The check was presented for payment
Q: What are the duties of a drawee in connection beyond 180 days from maturity.
with a BP 22 case?
e. Valid cause to stop payment.
a. When refusing to pay check to the holder f. Complainant was informed by issuer
upon presentment, the drawee must cause beforehand that the account had closed.
to be written, printed, or stamped in plain g. The complainant is the actual or potential
language thereon, or attached thereto, the wrongdoer or he had no more right to
reason for drawee's dishonor or refusal to encash the check for payment.
pay the same. h. Only an oral notice or demand to pay was
b. If there are no sufficient funds in or credit given to the drawer upon dishonor of
with such drawee bank, such fact shall drawee. The law requires that the
always be explicitly stated in the notice of insufficiency of funds in or credit shall be
dishonor or refusal.
explicitly stated in the written notice of
c. Notwithstanding receipt of an order to stop
dishonor and demand for payment.
payment, the drawee shall state in the
notice that there were no sufficient funds in (Domagsang v. Court of Appeals, G.R. No.
or credit with such bank for the payment in 139292, 2000
full of such check, if such be the fact.
d. The introduction in evidence of the unpaid —end of topic—
and dishonored check, with drawee’s

M. COMPREHENSIVE DANGEROUS ii. Acting as organizer,

DRUGS ACT OF 2002 (R.A. No. 9165 manager, or financier
as amended by R.A. No. 10640) 2. Sale, trading, administration, dispensation,
delivery, distribution and transportation of
Q: What is a Den, dive, or resort? dangerous drugs and/or controlled
precursors and essential chemicals,
A: It is a place where any dangerous drug and/or including any and all species of opium
controlled precursor and essential chemical is poppy regardless of the quantity and purity
administered, delivered, stored for illegal purposes,
involved.
distributed, sold or used in any form.
a. Note: Maximum penalty imposed
Q: When are the offenses under the when
Comprehensive Dangerous Drugs Act deemed i. Act transpires 100 meters
to be committed by syndicate? from a school
ii. Minors/mentally
A: when there is an organized group of two or more incapacitated individuals
person forming or joining together with the intention are used as runners,
of committing any offense under the Comprehensive
couriers, messengers, or
Dangerous Drugs Act
in any other capacity
Q: Who is a financier? iii. Victim of the offense is a
minor or a mentally
A: A financier is any person who pays for, raises or incapacitated individual,
supplies money for, or underwrites any of the illegal or that the drug/controlled
activities prescribed under the Comprehensive precursor/essential
Dangerous Drugs Act
chemical involved is the
Q: Who is a protector/coddler? proximate cause of death
of a victim
A: any person who knowingly and willfully consents iv. Acting as an organizer,
to the unlawful acts provided for in this Act and uses manager, or financier
his/her influence, power or position in shielding, b. The fact of sale must be
harboring, screening or facilitating the escape of any sufficiently established. It must be
person he/she knows, or has reasonable grounds to shown that the sale was
believe on or suspects, has violated the provisions
consummated. The elements to
of this Act in order to prevent the arrest, prosecution
and conviction of the violator prove such are:
i. the transaction or sale
Q: What are the punishable acts under the took place;
Comprehensive Dangerous Drugs Act? ii. the corpus delicti or the
illicit drug was presented
A: They are: as evidence; and
1. Importation of dangerous drugs and/or
iii. the buyer and the seller
controlled precursors and essential
were identified (People v.
chemicals, regardless of quantity or purity
Buniag, G.R. No. 217661,
involved
June 26, 2019)
a. Note: Maximum penalty imposed
c. Elements of an illegal sale:
when:
i. Identity of the buyer and
i. Done through the use of a
the seller, the object of the
diplomatic passport,
sale and the
diplomatic facilities, or
consideration;
any other means
ii. Delivery of the thing sold
involving the offender’s
and the payment therefor.
official status to facilitate
(People of the Philippines
unlawful entry
v. Teofilo Honrado and

Romulo Honrado, G.R. v. Any employment of a

No. 182197, 2012) practitioner, chemical
d. Delivery is defined as any act of engineer, public official or
knowingly passing a dangerous foreigner
drug to another, personally or c. Maximum penalty is imposed upon
otherwise, and by any means, with a person acting as organizer,
or without consideration manager, or financier.
3. Maintenance of a den, dive or resort 6. Illegal chemical diversion of controlled
a. Note: Maximum penalty imposed precursors and essential chemicals
when: a. Chemical diversion: the sale,
i. Any dangerous drug is distribution, supply or transport of
administered, delivered or legitimately imported, in-transit,
sold to a minor who is manufactured or procured
allowed to use the same controlled precursors and
in such a place. essential chemicals, in diluted,
ii. Acting as organizer, mixtures or in concentrated form,
manager, or financier. to any person or entity engaged in
4. Being an employee of a den, dive, or resort, the manufacture of any dangerous
who is aware of the nature of the place as drug
such i. Includes packaging,
5. Manufacture of dangerous drugs and/or repackaging, labeling,
controlled precursors and essential relabeling or concealment
chemicals of such transaction
a. The presence of any controlled through fraud, destruction
precursor and essential chemical of documents, fraudulent
or laboratory equipment in the use of permits
clandestine laboratory is a prima misdeclaration, use of
facie proof of manufacture of any front companies or mail
dangerous drug. fraud.
b. Circumstances of a clandestine 7. Manufacture or delivery of equipment,
laboratory considered as instrument, apparatus, and other
aggravating circumstances paraphernalia for dangerous drugs and/or
i. Any phase of the controlled precursors and essential
manufacturing process chemicals. The maximum penalty shall be
was conducted in the imposed when any person, who uses a
presence or with the help minor or a mentally incapacitated individual
of minor/s; to deliver such equipment, instrument,
ii. Any phase or apparatus and other paraphernalia for
manufacturing process dangerous drugs.
was established or 8. Possession of dangerous drugs, regardless
undertaken within 100 of purity of the quantities laid down in the
meters of a residential, act
business, church or a. Use is subsumed under
school premises; possession
iii. clandestine laboratory i. EXC: Where the
was secured or protected presence of dangerous
with booby traps; drugs for possession is
iv. clandestine laboratory only in the form of
was concealed with residue, he should be
legitimate business charged with use (People
operations

v. Martinez, G.R. No. 11. Possession of equipment, instrument,

191366, 2018) apparatus and other paraphernalia for fit or
b. Elements of possession intended for smoking, consuming,
i. the accused is in administering, injecting, ingesting, or
possession of an item or introducing any dangerous drug into the
object, which is identified body, during parties, social gatherings or
to be prohibited or meetings, or in the proximate company of
regulated drug; at least 2 persons shall suffer maximum
ii. such possession is not penalty
authorized by law; and 12. Use of Dangerous Drugs, after being found
iii. the accused freely and positive via a confirmatory test.
consciously possessed a. Nor applicable if the person tested
the drug. is also found to have in his/her
c. Illegal possession is mala possession I such quantity of any
prohibita, hence intent is not an dangerous drug
element, but prosecution must still 13. Cultivation or culture of plants classified as
prove intent to possess. dangerous drugs or are sources thereof
i. The prosecution must 14. Failure to maintain or keep original records
prove that accused of transactions on Dangerous Drugs and/or
knowingly, freely, controlled precursors and essential
intentionally, and chemicals
consciously possessed 15. Unnecessary prescription of dangerous
the prohibited articles in drugs – It is the act of prescribing any
his person dangerous drug to any person whose
d. Possession can be actual or physical or physiological condition does not
constructive require the use or in the dosage prescribed
i. Actual possession: the therein
drug is in the immediate 16. Unlawful prescription of drugs – Any
physical possesion r person, who, unless authorized by law,
control of the accused shall make or issue a prescription or any
ii. Constructive possession: other writing purporting to be a prescription
the drug is under the for any dangerous drug
dominion and control of
the accused, or that the Q: If the accused has in his possession two or
accused has such power more kinds of dangerous drugs, what effect
would there be on the charge of possession
over the place where the
against him?
drugs are placed
e. Exclusive possession or control is A: There would be no effect. The possession of two
not necessary or more kinds of dangerous drugs in a single
9. Possession of equipment, instrument, occasion constitutes only one charge of possession.
apparatus and other paraphernalia for fit or An accused may only be convicted of a single
intended for smoking, consuming, offense of possession of dangerous drugs if he or
administering, injecting, ingesting, or she was caught in possession of different kinds of
dangerous drugs in a single occasion. If convicted,
introducing any dangerous drug into the the higher penalty shall be imposed, which is still
body lighter than if the accused is convicted of two (2)
10. Possession of dangerous drugs during offenses having two (2) separate penalties.
parties, social gatherings or meetings, or in
the proximate company of at least 2 Q: What is the chain of custody rule?
persons, regardless of quantity and purity,
shall suffer maximum penalty A: The chain of custody the duly recorded
authorized movements and custody of seized drugs
or controlled chemicals or plant sources of

dangerous drugs or laboratory equipment of each i. Within 24 hours from receipt of judgment –
stage, from the time of seizure/confiscation to trial prosecutor shall inform the Board and
receipt in the forensic laboratory to safekeeping to request for leave to turn over the samples
presentation in court for destruction. Such record of to PDEA for destruction.
movements and custody of seized item shall include
the identity and signature of the person who held Non-compliance with Sec. 21(1), under justifiable
temporary custody of the seized item, the date and grounds, shall not void the seizure and custody over
time when such transfer of custody were made in the said items, as long as the integrity and
the course of safekeeping and use in court as evidentiary values of the seized items were properly
evidence, and the final disposition. preserved by the apprehending officer/team.
Q: What are the rules on chain of custody? Q: What principles must be observed for chain
of custody?
a. At the place where the search warrant is
served, or nearest police station, or nearest A: The mandatory policies that must be observed
office of the apprehending officer/team, are”
there must be the inventory and 1. In the sworn statements/affidavits, the
photographs done in the presence of the apprehending/seizing officers must state
accused, or his/her representative or their compliance with the requirements of
counsel with: Section 21 (1) of R.A. No. 9165, as
1. An elected public official; and amended, and its IRR.
2. In case of non-observance of the provision,
2. Representative of the National
the apprehending/seizing officers must
Prosecution Service or the media. state the justification or explanation
therefor as well as the steps they have
b. Within 24 hours from seizure, items must taken in order to preserve the integrity and
be submitted to the PDEA Forensic evidentiary value of the seized/confiscated
laboratory for examination. items.
c. Immediately upon receipt of the subject 3. If there is no justification or explanation
item/s, a certification under oath of the expressly declared in the sworn statements
forensic laboratory examiner shall be or affidavits, the investigating fiscal must
made. not immediately file the case before the
d. Within 72 hours from filing of criminal case, court. Instead, he or she must refer the
case for further preliminary investigation in
an ocular inspection shall be made.
order to determine the (non) existence of
e. Within 24 hours from filing of ocular, the probable cause.
drugs seized must be destroyed by the 4. If the investigating fiscal filed the case
PDEA in the presence of the accused or the despite such absence, the court may
person/s from whom such items were exercise its discretion to either refuse to
confiscated and/or seized, or his/her issue a commitment order (or warrant of
representative or counsel, a representative arrest) or dismiss the case outright for lack
from the media and the DOJ, civil society of probable cause in accordance with
groups and any elected public official. Section 5, 40 Rule 112, Rules of Court.
f. A representative sample in min. quantity
Caguioa concurring:
shall be retained. Those that belong to
1. The phrase "immediately after seizure and
lawful commerce shall be donated or confiscation" means that the physical
recycled for legitimate purposes. inventory and photographing of the drugs
g. Sworn certification of destruction shall be were intended by the law to be made
issued by the Board and submitted to the immediately after, or at the place of
court with jurisdiction of the case, along apprehension. And only if this is not
with the sample. practicable can the inventory and
h. Accused or representative are allowed to photographing then be done as soon as the
observe proceedings. If accused has no apprehending team reaches the nearest
counsel within 72hrs from written notice police station or the nearest office
2. The required witnesses should already be
prior to destruction, court shall appoint a
physically present at the time of
counsel from PAO. apprehension — a requirement that can

easily be complied with by the buy-bust

team considering that the buy-bust Q: X along with four (4) others were accused of
operation is, by its nature, a planned violating Sections 5 and 11 of R.A. No. 9165
activity. specifically the sale and possession of
3. Showing the transfer of hands of the drugs dangerous drugs, contrary to law. That the five
without showing compliance with the (5) accused in conspiracy with one another
inventory and photographing requirements acting as a syndicate. The RTC convicted X on
gives rise to the possibility that the drugs the strength of the prosecution’s claim while the
could have been planted, and thus the CA held that non-compliance with Sec. 21 of RA
marking and transfers prove the chain of 9165 does not necessarily affect the integrity of
custody of planted drugs. the evidence and result in the acquittal of the
4. In cases involving procedural lapses of the accused" and "what is of utmost importance is
police officers, proving the identity of the the preservation of the integrity and evidentiary
corpus delicti despite noncompliance with value of the seized items because the same will
Section 21 requires the saving clause to be be utilized in ascertaining the guilt or innocence
successfully triggered. of the accused" and the CA went on to hold that
5. For this purpose, the prosecution must the prosecution was able to establish the proper
satisfy its two-pronged requirement: first, chain of custody. Was X’s guilt for violation of
credibly justify the noncompliance, and Sections 5 and 11 of R.A. 9165 proven beyond
second, show that the integrity and reasonable doubt?
evidentiary value of the seized item were
properly preserved. (Lim v. People, G. R. A: NO, X is acquitted. In order to convict a person
No. 231989, 2018) charged with the crime of illegal sale of dangerous
drugs under Sec. 5, Article II of RA 9165, the
Q: Provide some examples of violations of chain prosecution must prove the following elements:
of custody rule 1. the identity of the buyer and the seller, the
object and the consideration; and
A: Some examples are 2. the delivery of the thing sold and the
1. Accused was not present during the payment thereof.
photography of the seized items
2. None of the three required witnesses were On the other hand, to reach a conviction in a case
present at the time of the arrest and the involving the crime of illegal possession of
seizure of the drugs. dangerous drugs, the following must be proved
a. The three witnesses should beyond reasonable doubt:
1. the accused is in possession of an item or
already be physically present at
the time of the conduct of the object which is identified to be a prohibited
drug;
inventory
2. such possession is not authorized by law;
3. Failure of the three required witnesses to
and
sign the inventory receipt
3. the accused freely and consciously
4. Barangay tanods were present during the
possessed the said drug.
inventory.
a. The law requires the presence of
In all drugs cases, compliance with the chain of
an elected public official. Barangay custody rule is crucial in any prosecution that follows
tanods are not elected; they are such an operation. Sec. 21, RA 9165 strictly
merely appointed requires that:
5. The drugs were turned over to the crime 1. the seized items be inventoried and
laboratory 10 days after seizure photographed immediately after seizure or
6. Lack of evidence as to handling and confiscation; and
condition of the specimen, as well as 2. the physical inventory and photographing
precautions taken to ensure that there was must be done in the presence of
no change in the condition of the specimen a. the accused or his/her
7. Failure to correctly mark the drugs and representative or counsel,
failure to make certificate of inventory for b. an elected public official,
the items taken c. a representative from the media,

d. a representative from the searched twice by these operatives. The agents

Department of Justice (DOJ). brought X to a military camp where he was
forced to sign a document. Was X’s guilt for
The provision further requires the apprehending violation of Sections 5 of R.A. 9165 proven
team to conduct a physical inventory of the seized beyond reasonable doubt?
items and the photographing of the same
immediately after seizure and confiscation. The said A: NO, X is acquitted. In order to convict a person
inventory must be done in the presence of the charged with the crime of illegal sale of dangerous
aforementioned required witness, all of whom shall drugs under Sec. 5, Article II of RA 9165, the
be required to sign the copies of the inventory and prosecution must prove the following elements:
be given a copy thereof. In this case, the 1. the identity of the buyer and the seller, the
apprehending team did not conduct the buy- bust object and the consideration; and
operation or the inventory post- operation in the 2. the delivery of the thing sold and the
presence of the required witnesses. It was also payment thereof.
testified that there was no media representative or On the other hand, to reach a conviction in a case
any elected public official during the stages involving the crime of illegal possession of
required. It bears emphasis that the presence of the dangerous drugs, the following must be proved
required witnesses at the time of the apprehension beyond reasonable doubt:
and inventory is mandatory, and that the law 1. the accused is in possession of an item or
imposes the said requirement because their object which is identified to be a prohibited
presence serves an essential purpose. Concededly,
drug;
Sec. 21 of the IRR provides that "noncompliance of
these requirements under justifiable grounds, as 2. such possession is not authorized by law;
long as the integrity and the evidentiary value of the and
seized items are properly preserved by the 3. the accused freely and consciously
apprehending officer/team, shall not render void and possessed the said drug.
invalid such seizures and custody over said items."
In all drugs cases, compliance with the chain of
For this provision to be effective, however, the custody rule is crucial in any prosecution that follows
prosecution must first: such an operation. Sec. 21, RA 9165 strictly
(1) recognize any lapse on the part of the requires that:
police officers and 1. the seized items be inventoried and
(2) be able to justify the same. photographed immediately after seizure or
In sum, the prosecution failed to provide justifiable confiscation; and
grounds for the apprehending team's deviation from 2. the physical inventory and photographing
the rules laid down in Sec. 21 of RA 9165. The
integrity and evidentiary value of the corpus delicti must be done in the presence of
have thus been compromised.(People v. Alcantara a. the accused or his/her
y Mapata, G.R. No. 231361, July 3, 2019) representative or counsel,
b. an elected public official,
Q: X was accused of violating Sections 5 of R.A. c. a representative from the media,
No. 9165 specifically the sale of dangerous
d. a representative from the
drugs contrary to law. The prosecution states
the following narration of facts: PDEA received Department of Justice (DOJ).
a report from a confidential informant regarding
X’s drug activities and thereafter conducted a The provision further requires the apprehending
buy- bust operation. The agents were able to team to conduct a physical inventory of the seized
obtain one (1) sachet of shabu from X, after items and the photographing of the same
which the agents identified themselves as immediately after seizure and confiscation.
members of PDEA and X was handcuffed and Concededly, Sec. 21 of the IRR provides that
searched. PDEA claims they have properly "noncompliance of these requirements under
complied with the chain of custody. The defense justifiable grounds, as long as the integrity and the
pleads not guilty and poses the following evidentiary value of the seized items are properly
narration of facts: An unknown female and two preserved by the apprehending officer/team, shall
(2) unknown armed males approached X, not render void and invalid such seizures and
pointing their gun at him; they grabbed him and custody over said items." For this provision to be
pulled his arms behind his back and brought effective, however, the prosecution must first:
him inside a vehicle. Thereafter, he was bodily

1. recognize any lapse on the part of the Q: Enumerate the different kinds of acts
police officers and punishable under the Cybercrime Prevention
2. be able to justify the same. Act.
In sum, the prosecution failed to provide justifiable A: Under the law, there are four different kinds of
grounds for the apprehending team's deviation from punishable acts:
the rules laid down in Sec. 21 of RA 9165. The a. Cybercrime offenses – Offenses against
integrity and evidentiary value of the corpus delicti the confidentiality, integrity, and availability
have thus been compromised. (People v. Cañete y of the computer data and systems
Fernandez, G.R. No. 242018, July 3, 2019) b. Computer-related offenses
c. Content-related offenses
Q: When is the unbroken chain of custody
essential? d. Other offenses
A: An unbroken chain of custody becomes Q: Enumerate and define the cybercrime

indispensable and essential when the item of real offenses.
evidence is not distinctive and is not readily
identifiable, or when its condition at the time of A: The cybercrime offenses are:
testing or trial is critical, or when a witness has failed 1. Illegal Access – the access to the whole or
to observe its uniqueness. any part of a computer system without right
2. Illegal Interception – interception made by
Q: Is the tip of a confidential informant sufficient
technical means without right of any non-
basis for an arrest or seizure?
public transmission of computer data to,
A: No, the tip of a confidential informant is not from, or within a computer system including
enough. Law enforcers cannot act solely on the electromagnetic emissions from a
basis of confidential or tipped information. A tip is computer system carrying such computer
still hearsay, no matter how reliable it may be. It is data.
not sufficient to constitute probable cause in the 3. Data Interference – intentional or reckless
absence of an other circumstance that will arouse
alteration, damaging, deletion or
suspicion. Thus, the cases adhering to the doctrine
that exclusive reliance on an unverified, anonymous deterioration of computer data, electronic
tip cannot engender probable cause that permits a document, or electronic data message,
warrantless seach of a moving vehicle that goes without right, including the introduction or
beyond a visual search should be prevailing and transmission of viruses.
controlling line of jurisprudence. (People of the 4. System Interference – intentional alteration
Philippines v. Jerry Sapla y Guerrero a.k.a. Eric or reckless hindering or interference with
Salibad y Mallari, G.R. No. 244045, June 16, 2020.)
the functioning of a computer or computer
—end of topic— network by inputting, transmitting,
damaging, deleting, deteriorating, altering
or suppressing computer data or program,
N. CYBERCRIME PREVENTION ACT OF electronic document, or electronic data
2012 (R.A. No. 10175) message, without right or authority,
including the introduction or transmission of
Q: Under the Cybercrime Prevention Act, what is viruses.
computer data? 5. Misuse of Devices
a) The use, production, sale,
A: Computer data is any representation of facts,
procurement, importation,
information, or concepts in a form suitable for
processing in a computer system including a distribution, or otherwise making
program suitable to cause a computer system to available, without right, of:
perform a function and includes electronic i) A device, including a
documents and/or electronic data messages computer program,
whether stored in local computer systems or online. designed or adapted
primarily for the purpose

of committing any of the perpetuating a fraudulent or

offenses under this Act; or dishonest design.
ii) A computer password, 2. Computer-related Fraud – Unauthorized
access code, or similar input, alteration, or deletion of computer
data by which the whole data or program or interference in the
or any part of a computer functioning of a computer system, causing
system is capable of damage thereby with fraudulent intent.
being accessed with a. If no damage has yet been
intent that it be used for caused, the penalty imposable
the purpose of committing shall be one (1) degree lower.
any of the offenses under 3. Computer-related Identity Theft –
this Act. Intentional acquisition, use, misuse,
b) The possession of an item referred transfer, possession, alteration or deletion
to above with intent to use said of identifying information belonging to
devices for the purpose of another, whether natural or juridical,
committing any of the offenses without right.
under this section. a. If no damage has yet been
6. Cyber-squatting – acquisition of a domain caused, the penalty imposable
name over the internet in bad faith to profit, shall be one (1) degree lower.
mislead, destroy reputation, and deprive
others from registering the same, if such a Q: Enumerate and define the content-related
domain name is: offenses.
a) Similar, identical, or confusingly
similar to an existing trademark A: They are:
registered with the appropriate 1. Cybersex – Willful engagement,
government agency at the time of maintenance, control, or operation, directly
the domain name registration; or indirectly, of any lascivious exhibition of
b) Identical or in any way similar with sexual organs or sexual activity, with the
the name of a person other than aid of a computer system, for favor or
the registrant, in case of a consideration.
personal name; and 2. Child Pornography — the unlawful or
c) Acquired without right or with prohibited acts denied and punishable by
intellectual property interests in it. Republic Act No. 9775 or the Anti-Child
Pornography Act of 2009, committed
Q: Enumerate and define the computer-related through a computer system.
offenses.
The penalty to be imposed shall be one (1)
A: They are: degree higher than that provided for in
1. Computer-related Forgery Republic Act No. 9775.
a. Input, alteration, or deletion of any 3. Libel — the unlawful or prohibited acts of
computer data without right libel as defined in Article 355 of the Revised
resulting in inauthentic data with Penal Code, as amended, committed
the intent that it be considered or through a computer system or any other
acted upon for legal purposes as if similar means which may be devised in the
it were authentic, regardless future.
whether or not the data is directly (a) It only penalizes online libel as
readable and intelligible; or valid and constitutional with
b. Act of knowingly using computer respect to the original author of the
data which is the product of post; but void and unconstitutional
computer- related forgery as with respect to others who simply
denied herein, for the purpose of receive the post and react to it.

Q: Enumerate the other offenses under the law.

Trailers having any number of wheels, when
A: They are propelled or intended to be propelled by attachment
1. Aiding or Abetting in the Commission of to a motor vehicle, shall be classified as a separate
Cybercrime – any person who willfully motor vehicle with no power rating.
abets or aids in the commission of any of
Q: What are the elements of carnapping?
the offenses enumerated in this Act shall be
held liable.
A: The elements of carnapping are:
(a) Applicable only to the following 1. Taking, with intent to gain;
crimes: 2. A motor vehicle belonging to another;
(i) Illegal Access 3. Without the latter’s consent;
(ii) Illegal Interception 4. By means of violence against or
(iii) Data Interference intimidation of persons; or by using force
(iv) System Interference upon things.
(v) Misuse of Devices
(vi) Cyber Squatting Q: What are the punishable acts under the Anti-
(vii) Computer- related Forgery carnapping Act?
(viii) Computer- related Fraud
(ix) Computer-related Identity A: The following acts are punishable under the Anti-
Theft Carnapping Act:
(x) Cybersex 1. When the carnapping is committed
WITHOUT violence against or intimidation
2. Attempt in the Commission of Cybercrime
of persons, or force upon things (Sec. 3);
— any person who willfully attempts to
2. When the carnapping is committed BY
commit any of the offenses enumerated in
MEANS OF violence against or intimidation
this Act shall be held liable.
of persons, or force upon things (Sec. 3);
3. When the owner, driver, or occupant of the
Q: What is the effect of committing a crime
carnapped motor vehicle is killed or raped
through cyberspace for crimes punishable
in the commission of the carnapping (Sec.
under the RPC and special laws?
3);
4. Concealment of carnapping (Sec. 4);
A: A penalty one degree higher than that provided
5. Failure to register the vehicle engine,
for by the relevant law shall be imposed.
engine block and chassis with the LTO –
—end of topic— Unregistered vehicle engine, engine block
and chassis with the LTO shall be
considered as a carnapped vehicle, an
O. NEW ANTI-CARNAPPING ACT OF untaxed importation or coming from illegal
2016 (R.A. No. 10883) source and shall be confiscated in favor of
the government (Sec. 6); and,
Q: What is a motor vehicle? 6. Failure to register the sale, transfer,
conveyance of motor vehicle engine,
A: A motor vehicle is any vehicle propelled by any engine block or chassis of a motor vehicle
power other than muscular power using the public – Otherwise, the presumption arises that it
highways, EXCEPT for the following: is a carnapped vehicle, an untaxed
1. road rollers, trolley cars, street sweepers,
imported vehicle, or a vehicle proceeding
sprinklers, lawn mowers, bulldozers, from illegal sources unless proven
graders, forklifts, amphibian trucks, and otherwise and shall be confiscated in favor
cranes if not used on public highways; of the government
2. vehicles which run only on rails or tracks;
and,
3. tractors, trailers and traction engines of all
kinds used exclusively for agricultural
purposes.

Q: What are acts considered unlawful under the Q: What must be proven in the special complex
Anti-Carnapping Act? crime of carnapping?
A: The following are classified as “UNLAWFUL A: To prove the special complex crime of
ACTS” under the law. However, the law does not carnapping with homicide, there must be proof not
provide for their penalties. only of the essential elements of carnapping, but
1. Defacing or tampering with serial numbers also that it was the original criminal design of the
of motor vehicles, engine blocks and culprit and the killing was perpetrated in the course
chassis (Sec. 14); of carnapping or on the occasion thereof. The killing
2. Transfer into another name, the chassis of the victim cannot qualify the carnapping into a
number, engine number and plate number special complex crime because the carnapping was
of a motor vehicle declared as "total an afterthought when the victim’s death was already
wreck" or beyond economic repair by fait accompli. (People v. Aquino, G.R. No. 201092,
concerned insurance company and/or law 2014)
enforcement agencies (Sec. 15);
3. Transfer of vehicle plate (Sec. 16); and, —end of topic—
4. Sale of second-hand spare parts taken
from carnapped vehicle (Sec. 17).
P. SPECIAL PROTECTION OF CHILDREN
Q: What are aggravating circumstances that AGAINST ABUSE, EXPLOITATION,
result to the denial of bail? AND DISCRIMINATION ACT (R.A. No.
7610)
A: Aside from when the evidence of guilt is strong,
the law provides that there shall be a denial of bail Q: Who are considered children covered
when the crime of carnapping is committed: under this law?
1. by criminal groups, gangs or syndicates;
2. by means of violence or intimidation of any A: A child refers to
person or persons; 1. Persons below 18 years of age or
3. by means of forced upon things; 2. Those over 18 but are unable to protect
4. when the owner, driver, passenger, or themselves because of physical or mental
occupant of the carnapped vehicle is killed disability or condition (Sec. 3[a])
or raped in the course of the carnapping
Q: What is child abuse?
Q: Can the frustrated and attempted homicide or
murder qualify carnapping to the special A: Maltreatment, whether habitual or not, of a child
complex crime of carnapping with homicide? which includes:
1. Psychological and physical abuse,
neglect, cruelty, sexual abuse and
A: Since the law used the phrase “is killed,” there
shall be no distinction between homicide and emotional maltreatment
murder. It follows then that the killing, whether it be 2. Act by deeds or words which debases,
homicide or murder, cannot be treated as a separate degrades or demeans the intrinsic worth
offense, but should only be considered to qualify the and dignity
crime of carnapping. 3. Unreasonable deprivation of basic needs
4. Failure to give immediate medical
Consequently, said phrase gives the unmistakable treatment (Sec. 3[b])
import thereof that it refers only to the consummated
felony of either murder or homicide. The frustrated Q: What is the punishable act of child
and attempted homicide or murder will not qualify prostitution and other sexual abuse?
carnapping. (People v. Mejia, G.R. No. 118940-41,
A: When children, whether male or female, who for
1997)
money, profit, other consideration or due to coercion
by an adult, is made to indulge in sexual intercourse
or lascivious conduct (Sec. 5).
It is punishable when: [PSA]

1. Any adult who engages in, promotes,

facilitates, or induces child Prostitution by: 3. Induce, deliver, or offer a minor to anyone
a. Acting as procurer; prohibited by this Act;
b. Inducing a client; 4. Managers, owners of establishments or
c. Taking advantage or influence or any person who allows a person to take
relation to procure a child as along with him any minor herein described
prostitute; to places of accommodations, residence,
d. Threatening or using violence to erc.; and
engage a child as a prostitute 5. Use, coerce, force or intimidate a child to
e. Giving pecuniary benefit or goods beg for a living, act as middleman in drug
to a child with intent to engage in trafficking, or conduct any illegal activities
prostitution (Sec. 10)
2. Any adult who commits Sexual intercourse
or lascivious conduct with a child Q: What are circumstances which gravely
threaten or endanger the survival and normal
exploited; and
development of children?
3. Any person who derives profit or
Advantage, such as the manager or owner A: This include, but are not limited to the following:
of establishment (Sec. 5) 1. Being in a community where there is
armed conflict
Q: What are considered as other acts of abuse? 2. Working conditions hazardous to life
3. Living in the streets or fending for
A: When the person: [DCDMB]
themselves
1. Commit any acts of child abuse, cruelty, or
4. Living under conditions of extreme poverty
exploitation, or be responsible for
5. Being a victim of man-made or natural
conditions prejudicial to the child’s
disaster or calamity
development;
6. Circumstances analogous (Sec. 3[c]).
2. Keep in his company a minor twelve (12)
years or under, or who is ten (10) years his
junior, unless related within the 4th degree;
Q: Compare Acts of Lasciviousness, Rape, and Sexual Assault under the RPC with Sexual Intercourse
or Lascivious Conduct under RA 7610.
BELOW 12 YEARS OLD 12 YEARS OLD - BELOW 18 YEARS OLD AND

18 YEARS OLD OR 18 ABOVE
YEARS AND ABOVE
WITH SPECIAL
CIRCUMSTANCES
Sexual Sexual intercourse with a Sexual abuse under Section Rape under Art. 266-A in
Intercourse victim who is under 12 years 5(b) of R.A. No. 7610 relation to Article 266-B of
old or is demented is the RPC, as amended by
statutory rape. (Rape under R.A. 8353
Art. 266-A in relation to
Article 266-B (penalties) of
the RPC, as amended by
R.A. 8353.
Sexual Assault Sexual assault (Art, 266-A Lascivious Conduct under

(2) RPC) in relations to Sec. Sec. 5(b) of R.A. 7610
5(b) of RA 7610

Q: What does “children exploited in prostitution intent to humiliate, abuse, harass, degrade, arouse,
or subjected to other sexual abuse” mean? or gratify the sexual desire of any person.
A: A child is considered as one “exploited in Force and intimidation were proven. BBB was AAA’s
prostitution or subjected to other sexual abuse” ROTC commander and teacher, thus BBB has
when the child indulges in sexual intercourse or moral ascendency and influence over her when he
lascivious conduct “under the coercion or influence did the acts in question. Force and intimidation are
of any adult.” Sexual intercourse or lascivious subsumed by coercion and influence, and that
conduct under the coercion or influence of any adult lascivious conduct under the coercion or influence
exists when there is some form of compulsion of an adult exists when there is some form of
equivalent to intimidation which subdues the free compulsion equivalent to intimidation which
exercise of the offended party’s free will. (Caballo v. subdues the exercise of free will by the other party.
People, G.R. No. 198732, 2013) Influence means the improper use of power or trust
in any way that deprives a person of free will and
Sec. 5 of RA 7610 punishes acts pertaining to or substitutes another’s objective. Coercion is the
connected with child prostitution wherein the child is improper use of power to compel another to submit
abused primarily for profit. On the other hand, to the wishes of one who wields it. Clearly, in this
paragraph (b) punishes sexual intercourse or case, BBB used his influence over AAA by telling
lascivious conduct committed on a child subjected her that only by acceding to his lewd requests would
to other sexual abuse. It covers not only a she gain rank in the ROTC. (Orsos v. People, G.R.
situation where a child is abused for profit but No. 214673, 2017)
also one in which a child, through coercion,
intimidation, or influence, engaged in sexual Q: X, a 17 year old high school student, met Y, a
intercourse or lascivious conduct. Hence, the law 23 year old college student, and they became
punishes not only child prostitution but also other sweethearts. Y convinced X top have sexual
forms of sexual abuse against children. (People v. intercourse several times by saying she
Ejercito, G.R. No. 229861, 2018) wouldn’t get pregnant since he would use the
withdrawal method, and that he would marry X.
Q: AAA is a 14 year old female third year high Later, X become pregnant and they were forced
school student. BBB, her ROTC Commandant, to break up. Y was charged with violation of Sec
told her that if she wanted to become an ROTC 5(b) of RA 7610 and convicted by the court. On
officer, he would have to initiate her. BBB told appeal, he argued that his promise to marry or
her to follow him to his house, where he to use the withdrawal method are not equivalent
confessed that he had a crush on her, pulled her to the elements of persuasion or inducement
onto his lap, told her to kiss him on the cheek that would lead to his conviction of the offense,
and lips, lifted her shirt and underwear and since the sex was consensual. Were the
suckled her breast for 2 minutes. She was elements of the crime of lascivious conduct
frightened and couldn’t complain, until a year properly established?
later when other students also complained that
BBB molested them as well, Later, AAA filed a A: Yes. The elements of Sec. 5(b) of RA 7610 are
case against him for lascivious conduct in (1) the accused commits the act of sexual
relation to RA 7610 Sec. 5(b), and BBB was intercourse or lasciviousness conduct; (2) the act is
convicted by the RTC. BBB raised in his appeal performed with a child exploited in prostitution or
that force and intimidation were not established subjected to other sexual abuse; and (3) the child,
by the prosecution. Was BBB properly whether male or female, is below 18 years of age.
convicted of lascivious conduct under RA 7610? The first and third elements are clearly present,
since X and Y repeatedly had sexual relations while
A: Yes, the conviction was proper. At the time, AAA X was a minor. The second elements is also
was a minor. Thus, the provisions of RA 7610 come present, since a child is deemed subjected to other
into play. The requisites for sexual abuse under RA sexual abuse when the child indulges in lascivious
7610 Sec. 5(b) are (1) the accused committed the conduct under the coercion or influence of any adult,
act of sexual intercourse or lascivious conduct; (2) which exists when there is some form of compulsion
the act is performed with a child exploited in equivalent to intimidation which subdues the free
prostitution or subjected to other sexual abuse; and exercise of the party’s free will. The court
(3) the child, whether male or female, is below 18 considered the fact that X was a minor, Y was 6
years of age. The IRR of RA 7610 provides that years older. Y gave all sorts of assurances like
lascivious conduct includes the intentional touching, marriage and the withdrawal method, and Y
either directly or through clothing, the breast of any pressured X several times until she gave in to his
person whether of the same or opposite sex, with an

requests (Caballo v. People, G.R. No. 198732,

266-A (1) (A,B,C) under 7610
2013)
the RPC
Q: 13-year-old A was raped by B. Because of
Offender is a man Offender is a man
this, B was convicted of rape under RA 7610
(Anti-Child Abuse Law). However, B is saying
Carnal knowledge of a Indulges in sexual
that he should be convicted of rape under the
woman intercourse with a
RPC. Should he be convicted of rape under the
RPC? female child exploited
in prostitution or other
sexual abuse, who is
A: No. If the victim of sexual abuse is below 12 years
12 years old or below
of age, the offender should be prosecuted for
18 or above 18 under
statutory rape under Article 266-A(1)(d) of the RPC.
special circumstances
On the other hand, if the victim is 12 years or older,
the offender should be charged with other sexual
Through force, threat or Coercion or influence of
abuse under Section 5(b) of RA 7610 or rape under
intimidation; when the any adult, syndicate or
Article 266-A (except paragraph 1[d] of the RPC.
offended party is group is employed
deprived of reason or against the child to
Here, since A was 13 years old, B can be
otherwise unconscious; become a prostitute
prosecuted either under Sec. 5(b) of RA 7610 for
and by means of
sexual abuse, or under Article 266-A of the RPC,
fraudulent machination
except for rape under paragraph 1(d). Therefore, B’s
or grave abuse of
conviction under RA 7610 is proper.(People v.
authority
Matias y Dela Fuente, G.R. No. 186469, 2012)
Q: B, with intent to harm and humiliate, did then Q: Is intent to debase necessary to convict the
and there, abuse, slap and whip A, a 14 year old accused of a violation of Section 10(a)?
minor with a T-shirt hitting his neck and A:
shoulder and causing him to fall down on the GR: Crimes punished by RA 7610 are mala
stairs of the barangay hall, to the damage and prohibitum. Intent to debase, degrade or demean
prejudice of the said victim in the amount to be the minor is not essential to degrade or demean the
proved during trial. Based on the physical minor is not essential to establish guilt.
examination conducted by Dr. Y, AA sustained a
contusion. A is the victim and B is the uncle of EXC: Acts done carelessly in anger do not amount
A. Is the prejudice to the development of the to an intent to debase the intrinsic worth and dignity
child necessary in violating Republic Act No. of a child. (Escolano v. People, G.R. No. 226991,
7610? 2018)
A: No. prejudice to the development of the child is —end of topic—

not a necessary element of the crime but constitutes
another act different the 3 other acts which are
enumerated in the same provision: child abuse,
Q. SWINDLING BY SYNDICATE (P.D. No.
child cruelty and child exploration. The act of
whipping a child three (3) times in the neck with a 1689)
wet t-shirt constitutes child abuse. The victim, AA,
was a child when the incident occurred. Q: When is swindling by syndicate punishable
by life imprisonment to death?
Q: In People vs. Tulagan, the Supreme Court
made a comparison of the elements of rape under A: It is punishable by life imprisonment to death
the RPC and sexual intercourse with a child under when:
Section 5(b) of the Child Abuse Law where the 1. Estafa or other forms of swindling as
offended party is between 12 years old and below defined in Article 315 and 316 of the
18: Revised Penal Code is committed;
2. The estafa or swindling is committed by a
syndicate of five or more persons;
Sexual Intercourse
Rape 3. Formed with the intention of carrying out
with a Child
the unlawful or illegal act, transaction,
Rape Under Article Section 5 (1) of R.A. enterprise or scheme; and,

4. Defraudation results in the —end of topic—

misappropriation of moneys contributed by
stockholders, or members of rural banks,
cooperatives, "samahang nayon(s)," or
farmers’ associations or of funds solicited
by corporations / associations from the
general public. (Sec. 1)
Q: When is swindling by syndicate punishable

by reclusion temporal to reclusion perpetua?
A: Swindling by syndicate punishable by reclusion

temporal to reclusion perpetua when:
1. The estafa or swindling is NOT committed
by a syndicate, as defined above;
2. Amount of the fraud EXCEEDS P100,000;
and,
3. All other elements above are present.
(Sec. 1)
Q: What are the requisites that must be met to

be considered a syndicate under PD 1689?
A: To be considered as a syndicate under PD 1689,

the perpetrators of an estafa must not only be
comprised of at least five individuals but must also
have also used the association that they formed or
managed to defraud its own stockholders, members
or depositors.
Section 1 of PD 1689 speaks of a syndicate formed

with the intention of carrying out the unlawful
scheme for the misappropriation of the money
contributed by the members of the association.
Thus, only those who formed [or] manage
associations that receive contributions from the
general public who misappropriated the
contributions can commit syndicated estafa. (Remo
v. Secretary of Justice, G.R. No. 192925, 2016)
Q: Are business investments a form of swindling

by syndicate?
A: No. Not all proposals to invest in certain business

ventures are tainted with fraud. To be sure, an
actionable fraud arises when the accused has
knowledge that the venture proposed would not
reasonably yield the promised results, and yet,
despite such knowledge, deliberately continues with
the misrepresentation. Business investments
ordinarily carry risks; but for as long as the incipient
representations related thereto are legitimate and
made in good faith, the fact that the business
eventually fails to succeed or skews from its
intended targets does not mean that there is fraud.
As case law instructs, "the gravamen of the [crime
of Estafa] is the employment of fraud or deceit to the
damage or prejudice of another.

offense is being charged (Rules of

IV. CRIMINAL LAW PRACTICAL
Court, Rule 110, Sec. 9).
EXERCISES 4. The name of the offended party;
• This includes he name and surname of
A. COMPLAINT IN CRIMINAL CASES the person against whom or against
whose property the offense was
Q: What is a complaint? committed, or any appellation or
nickname by which such person has
A: A complaint is a sworn written statement been or is known.
charging a person with an offense, subscribed by • If there is no better way of identifying
the offended party, any peace officer, or other public him, he must be described under a
fictitious name.
officer charged with the enforcement of the law
• In offenses against property, if the
violated. (Rules of Court, Rule 110, Sec 3).
name of the offended party is
unknown, the property must be
Q: How is a complaint done? described with such particularity
• If the offended party is a juridical
A: The complaint shall be:
person, it is sufficient to state its name,
1. in writing,
or any name or designation by which it
2. in the name of the People of the Philippines and
is known or by which it may be
3. against all persons who appear to be
identified, without need of averring that
responsible for the offense involved (Rules of
it is a juridical person or that it is
organized in accordance with law.
5. The approximate date of the commission of the
A complaint must charge but one offense, except
offense;
when the law prescribes a single punishment for
• State the precise date only when it is a
various offenses (Rules of Court, Rule 110, Sec.
material ingredient of the offense.
13).
• Otherwise, the offense may be alleged
The complaint is sufficient if it states: to have been committed on a date as
1. the name of the accused near as possible to the actual date of
its commission (Rules of Court, Rule
• • This includes the name and surname of the
110, Sec. 11).
accused or any appellation or nickname by
6. The place where the offense was committed
which he has been or is known.
• It is sufficient if the offense was
• If his name cannot be ascertained, he must
committed or some of the essential
be described under a fictitious name with a
ingredients occurred at some place
statement that his true name is unknown
within the jurisdiction of the court,
(Rules of Court, Rule 110, Sec. 7).
unless the particular place where it was
• When an offense is committed by more than
committed constitutes an essential
one person, all of them shall be included in
element of the offense or is necessary
the complaint.
for its identification (Rules of Court,
2. the designation of the offense given by the
Rule 110, Sec. 10).
statute;
• It must also aver the acts or omissions
constituting the offense and specify its
qualifying and aggravating
circumstances.
• If there is no designation of the offense,
reference shall be made to the section
or subsection of the statute punishing it
3. the acts or omissions complained of as
constituting the offense;
• These must be stated in ordinary and
concise language, not necessarily in
the language used in the statute but in
terms sufficient to enable a person of
common understanding to know what

FORM: Complaint
REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF JUSTICE
OFFICE OF THE CITY PROSECUTOR
[CITY/PROVINCE]
JUAN PABLO DELA CRUZ,

Complainant,
-versus- NPS Docket No. _________________

For: ___________________________
MARIANO ZAMORA,
Respondent.
x----------------------------------------------------------------------------------------------------------------------------- ----------------x
COMPLAINT-AFFIDAVIT
I [name/details] after having been sworn in accordance with law, hereby depose and state:
I accuse [name of offended party] of the crime of [designation of the offense], committed as follows:
That on or about the [approximate date of commission], in the [place of commission], and within
the jurisdiction of this Honorable Court, the above-named accused, [acts or omissions complained of as
constituting the offense], against [name of offended party].
I am executing this Complaint-Affidavit to attest to the truth of the foregoing and for this Honorable
Office to CHARGE Respondent with [specific charge].
IN WITNESS WHEREOF, I have hereunto set me hand this 29th of April, 2020, in the City of Makati.
JUAN PABLO DELA CRUZ
SUBSCRIBED AND SOWRN TO BEFORE ME this _th day of ____ 200_ in ____ City. I hereby certify that I
have personally examined the affiant and that I am satisfied that he/she voluntarily executed and understood
the statements in the foregoing Complaint-Affidavit.
____________________
Investigating Prosecutor

B. INFORMATION IN CRIMINAL CASES • If there is no designation of the offense,

reference shall be made to the section
Q: What is an information? or subsection of the statute punishing it
A: An information is an accusation in writing 3. the acts or omissions complained of as
charging a person with an offense, subscribed by constituting the offense;
the prosecutor and filed with the court (Rules of • These must be stated in ordinary and
Court, Rule 110, Sec. 4). concise language, not necessarily in
the language used in the statute but in
terms sufficient to enable a person of
Q: How is an Information done?
common understanding to know what
offense is being charged (Rules of
A: The information shall be:
1. In writing;
4. The name of the offended party;
2. In the name of the People of the Philippines;
• This includes he name and surname of
and
the person against whom or against
3. Against all persons who appear to be
whose property the offense was
responsible for the offenses involved (Rules of
committed, or any appellation or
nickname by which such person has
been or is known.
Complaint Information
• If there is no better way of identifying
May be signed by the Always signed by the
him, he must be described under a
offended party, any prosecuting officer
fictitious name.
peace officer, or other
• In offenses against property, if the
public officer in charge
name of the offended party is
with the enforcement of
unknown, the property must be
the law violated
described with such particularity
Sworn to by the person Need not be under
• If the offended party is a juridical
signing it oath, since the
person, it is sufficient to state its name,
prosecutor filing it is
or any name or designation by which it
already acting under
is known or by which it may be
the oath of his office
identified, without need of averring that
May be filed either with Always filed in the
it is a juridical person or that it is
the office of the court
organized in accordance with law.
prosecutor or with the
5. The approximate date of the commission of the
court
offense;
• State the precise date only when it is a
material ingredient of the offense.
The complaint is sufficient if it states:
1. the name of the accused • Otherwise, the offense may be alleged
to have been committed on a date as
• • This includes the name and surname of the
near as possible to the actual date of
accused or any appellation or nickname by
its commission (Rules of Court, Rule
which he has been or is known.
110, Sec. 11).
• If his name cannot be ascertained, he must
6. The place where the offense was committed
be described under a fictitious name with a
• It is sufficient if the offense was
statement that his true name is unknown
committed or some of the essential
ingredients occurred at some place
• When an offense is committed by more than
within the jurisdiction of the court,
one person, all of them shall be included in
unless the particular place where it was
the complaint or information.
committed constitutes an essential
2. the designation of the offense given by the
element of the offense or is necessary
statute;
for its identification (Rules of Court,
• It must also aver the acts or omissions Rule 110, Sec. 10).
constituting the offense and specify its
qualifying and aggravating
circumstances.

FORM: Information
Republic of the Philippines
REGIONAL TRIAL COURT
National Capital Judicial Region
BRANCH [#], [Venue]
PEOPLE OF THE PHILIPPINES, Crim. Case No. ___XXX______

Plaintiff,
-versus- For: Qualified Theft
JK CRUZ
Accused.
x-----------------------------------------------------------------------x
INFORMATION
The Undersigned Assistant City Prosecutor accuses [name of accused] of the crime of Qualified
Theft [designation of the offense], committed as follows:
That on or about the [approximate date of commission], in the [place of commission], and within
the jurisdiction of this Honorable Court, the above-named accused, [acts or omissions complained of as
constituting the offense, which must prove all the elements of the crime; include also aggravating
circumstances] against [name of offended party].
CONTRARY TO LAW.
Makati City, Philippines, June 29, 2020.
MERYLLIN STREEP
Assistant City Prosecutor
Approved:
AMOR POWERLESS
City Prosecutor
WITNESSES:
1. Brad Pito - c/o Mission Impossible Hauling Services Cooperative, 1 Rockwell Drive, Makati City
2. And others.
CERTIFICATE OF PRELIMINARY INVESTIGATION
I hereby certify that a preliminary investigation in this case was conducted by me in accordance with
law; that I examined the Complainant and her witnesses; that there is reasonable ground to believe that the
offense charged had been committed and that the accused is probably guilty thereof; that the accused was
informed of the Complaint and of that the accused is probably guilty thereof; that the accused was informed
of the Complaint and of the evidence submitted against him and was given the opportunity to submit
controverting evidence; and that the filing of this information is with the prior authority and approval of the City
Prosecutor.
MERYLLIN STREEP
Assistant City Prosecutor
SUBSCRIBED AND SOWRN TO BEFORE ME this _th day of ____ 200_ in ____ City.
BAIL RECOMMENDED: P 24,000.00

Address of the Accused: 1 GUMAMELA ST., BRGY. BAGONG BUHAY, MAKATI CITY

[Note: if Information is filed after inquest (and not preliminary investigation), add:
1. Place where accused is actually detained
2. Full name and address of evidence custodian
3. Detailed description of recovered items, if any]
C. AFFIDAVIT OF DESISTANCE
Q: What is an Affidavit of Desistance?
A: A sworn statement executed by a complainant in a criminal or administrative case that he or she is

discontinuing the action filed upon his or her complaint for whatever reason he or she may cite. (People v.
Romero, 224 SCRA 749, 757, 1993)
FORM: Affidavit of Desistance

AFFIDAVIT OF DESISTANCE
REPUBLIC OF THE PHILIPPINES)

CITY OF MANILA ) S.S.
I, Pedro Luna, of legal age, single, and a resident of # 168 North St., Malate, Manila, after having duly sworn
to in accordance with law hereby depose and state:
1. I am the complaining witness for Serious Physical Injuries against Maria Clara in the case
entitled "People of the Philippines versus Maria Clara", Criminal Case No. 67890, Metropolitan Trial Court,
Branch No. 5, City of Manila.
2. I have realized that because I was not wearing my eyeglasses and it was dark, I cannot point out,
without a doubt the accused or any other person/s who inflicted harm against me.
3. Since I could not state with certainty and without doubt the liability of Jesus Santos, in fairness to him,
I am permanently withdrawing my complaint against him. I clear him of whatever responsibility or liability to
me.
4. I hereby inform the City Prosecutor of Manila that I am withdrawing my complaint for Serious Physical
Injuries in Criminal Case No. 67890 entitled "People of the Philippines versus Maria Clara", Metropolitan Trial
Court, Branch No. 5, City of Manila.
5. I likewise request the Metropolitan Trial Court, Branch No. 5, City of Manila to dismiss with prejudice
the said criminal case.
6. I voluntarily executed this Affidavit of Desistance and I was not threatened or intimidated by anyone.
IN WITNESS WHEREOF, I hereby set my hand this __ day of September 2022 at the City of Manila.
PEDRO LUNA
Complaining Witness
SUBSCRIBED AND SOWRN to before me this _th day of September 2022 at the City of Manila, Philippines.
Geronimo Stilton
Public Prosecutor


TABLE OF CONTENTS: COMMERCIAL LAW
I. INSURANCE .......................................................................................................................................109
A. BASIC CONCEPTS OF INSURANCE ......................................................................................109

B. PERFECTION OF INSURANCE CONTRACT ..........................................................................116
C. RIGHTS AND OBLIGATIONS OF PARTIES ............................................................................120
D. RESCISSION OF INSURANCE CONTRSCTS .........................................................................120
II. TRANSPORTATION LAW ................................................................................................................126
A. COMMON CARRIERS ..............................................................................................................126

B. OBLIGATIONS AND LIABILITIES ...........................................................................................127
C. DEFENSES AVAILABLE TO A COMMON CARRIER .............................................................130
D. EXTENT OF LIABILITY.............................................................................................................131
III. CORPORATION LAW (Provisions of B.P. Blg 68, as amended by R.A. No. 11232) .................143
A. GENERAL PRINCIPLES ...........................................................................................................143

B. DE FACTO CORPORATION VERSUS CORPORATIONS BY ESTOPPEL ...........................145
C. CORPORATE POWERS ...........................................................................................................145
D. BOARD OF DIRECTORS AND TRUSTEES ............................................................................146
E. STOCKHOLDERS AND MEMBERS ........................................................................................151
F. CAPITAL STRUCTURE ............................................................................................................154
G. DISSOLUTION AND LIQUIDATION .........................................................................................157
H. OTHER CORPORATIONS ........................................................................................................160
I. MERGERS AND CONSOLIDATIONS ......................................................................................168
IV. INTELLECTUAL PROPERTY .........................................................................................................171
A. PATENTS ..................................................................................................................................171
B. TRADEMARKS..........................................................................................................................172
C. COPYRIGHT ..............................................................................................................................175
V. ANTI-MONEY LAUNDERING ACT (R.A. 9160, AS AMENDED) ....................................................178
A. COVERED INSITUTIONS AND THEIR OBLIGATIONS ..........................................................178

B. COVERED AND SUSPICOUS TRANSACTIONS ....................................................................178
C. SAFE HARBOR PROVISION ...................................................................................................180
D. WHEN IS MONEY LAUNDERING COMMITTED (INCLUDING PREDICATE CRIMES) ........180
E. AUTHORITY TO INQUIRE INTO BANK DEPOSITS ...............................................................180

F. FREZING AND FORFEITURE ..................................................................................................180
VI. ELECTRONIC COMMERCE ACT (R.A. No, 8792) ........................................................................181
A. LEGAL RECOGNITION OF ELECTRONIC DATA MESSAGES, DOCUMENTS, AND

SIGNATURES....................................................................................................................................181
B. PRESUMPTION RELATING TO ELECTRONIC SIGNATURES..............................................183
C. ADMISSIBILITY AND EVIDENTIAL WEIGHT OF ELECTRONIC DATA MESSAGE OR
ELECTRONIC DOCUMENT ..............................................................................................................183
D. OBLIGATION OF CONFIDENTIALITY .....................................................................................183
VII. FINANCIAL REHABILITATION, INSOLVENCY, LIQUIDATION AND SUSPENDION OF

PAUMENTS (R.A. No. 10142, FR RULES [A.M. No. 15-04-06-SC] ...................................................184
A. BASIC CONCEPTS ...................................................................................................................184

B. MODES OF REHABILITATION ................................................................................................185
C. LIQUIDATION ............................................................................................................................201
D. SUSPENSION OF PAYMENTS; SUSPENSION OF PAYMENT ORDER ...............................207

2. A partnership or an association.
I. INSURANCE
Q: Who is an insured?
A. BASIC CONCEPTS OF INSURANCE A: The person in whose favor the contract is
operative and who is indemnified against or is to
1. GENERAL OVERVIEW receive a sum upon the happening of a specified
event.
Q: What is a contract of insurance? 1. He must be competent to enter into a contract;
A: It Is an agreement whereby one undertakes for a 2. He must possess an insurable interest in the
consideration to indemnify another against loss, subject of the insurance; and
damage or liability arising from an unknown or 3. He must not be a public enemy (citizen or
contingent event. (Insurance Code, Sec. 2[a]). subject of country with whom the Philippines is
at war) (Insurance Code, Sec. 7)
Q: What is an unknown or contingent event?
A: A contingent event is one that is not certain to Q: Is consent of the other spouse necessary for
take place, while an unknown past event is one the validity of an insurance policy?
which already happened, but one is unaware if it A: The consent of the spouse is not necessary for
happened or not. the validity of an insurance policy taken out by a
married person on his or her life or that or his or her
Q: Additional Requisites for Insurance Contract: children (Insurance Code, Sec. 3, ¶ 2) or that of her
(IRADP) husband (Insurance Code, Sec. 10).
1. The insured must possess an interest of
some kind susceptible of pecuniary Q: Can a minor enter into a contract of insurance
estimation, known as insurable interest; without the consent of the parents/guardians?
2. The insured is subject to a risk of loss A: No. Under the Civil Code, the minor cannot enter
through the destruction or impairment of into a contract of insurance without the consent of
that interest by the happening of the parents/guardian and if he does, the contract is
designated perils; voidable. In such case, the insurer cannot, however,
3. The insurer assumes the risk of loss; raise the incapacity of the minor to the contract as
4. Such assumption is part of a general defense, as it is voidable at the option of the insured
scheme to distribute actual losses among a and not the insurer.
large group of persons bearing somewhat
similar risks; Q: Who is a beneficiary?
5. As consideration for the insurer’s promise, A: Person who is named or designated in a contract
the insured makes a ratable contribution of life, health, or accident insurance as the one who
called premium, to a general insurance is to receive the benefits which become payable,
fund. according to the terms of the contract, e.g. as the
death of the insured (44 Am Jur. 2d. 639, in de Leon,
Q: What is the test to determine if a contract is 2010, p.96).
one of insurance?
A: It depends on the nature of the promise, the act Q: How can a beneficiary be designated?
required to be performed, and the exact nature of A: As a GR, when one insures his own life, he may
the agreement in the light of the occurrence, designate any person as the beneficiary, whether or
contingency or circumstances under which the not the beneficiary has an insurable interest in the
performance becomes requisite. It is not by what it life of the insured. As an XPN, persons specified in
is called. (White Gold Marine Services v. Pioneer Article 739 of the Civil Code cannot be designated:
Insurance, G.R. No. 154514, 2005) 1. Those made between persons who were guilty
of adultery or concubinage (conviction is not a
PARTIES TO INSURANCE CONTRACT condition precedent);
2. Those made between persons found guilty of
Q: Who is an insurer? the same criminal offense, in consideration
A: The party who assumes or accepts the risk of thereof;
loss and undertakes for a consideration to 3. Those made to a public officer or his wife,
indemnify the insured or to pay him a certain sum descendants or ascendants by reason of his
on the happening of a specified contingency or office.
event. An insurer may be:
1. A foreign or domestic company or Q: Does the insured have the right to change the
corporation; or beneficiary in life insurance?

A: It depends. As a GR, the insured shall have the agent secures the policy in his name alone, it covers
right to change the beneficiary he designated in the only the interest of the agent and the principal has
policy (revocable beneficiary). (Insurance Code, no right of action against the insurer.
Sec. 11). As an XPN, however, if the insured
expressly waived his right to change the beneficiary, Q: Rule on agreement between the applicant and
this makes the latter an irrevocable beneficiary. But insurance agent only.
despite the waiver, he can still change the A: In an agreement between the applicant and the
beneficiary, provided he obtains the latter’s consent. agent only, there is no liability until the principal (or
(Insurance Code, Sec. 11) the insurer) approves the risk and receipt is given by
the agent. The acceptance of the application by the
NOTE: The insured also cannot obtain a policy loan agent is conditional and is subordinated to the act of
or cash surrender value on the policy, without the the company (or insurer) approving or rejecting the
consent of the irrevocable beneficiary because the application. (Great Pacific Life v. CA, G.R. No. L-
latter’s vested right extends to all benefits accruing 57308, 1990)
to the policy. Should the insured discontinue paying
premiums, the beneficiary may continue paying it Q: What is required of agents to exercise?
and be entitled to automatic extended term or paid- A: An agent must exercise the required degree of
up insurance options. (Philippine Commercial Laws: diligence in performing his duties so as to avoid
The Insurance Code Vol. 1 Commentary, Hernando committing an act of negligence. This entails the
B. Perez) timely collection of premiums to avoid situations of
non-payment by the insured.
Q: When can the interest of a beneficiary in a life
insurance policy be forfeited? Q: Can the negligence of an agent attach to the
A: When the beneficiary is the principal, accomplice, insurer?
or accessory in willfully bringing about the death of A: Yes. An insurer is not liable for a loss caused by
the insured; in which event, the share forfeited shall the willful act or though the connivance of the
be paid as follows: insured; but he is not exonerated by the negligence
1. To the other beneficiaries if not disqualified; of the insured, or of the agents or others. (Insurance
2. If no other beneficiaries, in accordance with the Code, Sec. 89)
policy contract (e.g. to the contingent or
substitute of beneficiaries); Q: Effect of failure of insurer to send its agent to
3. If the policy contract is silent, to the estate of the the insured for purpose of collecting premium in
insured. (Insurance Code, Sec. 12) industrial life insurance.
A: In case of industrial life insurance, the policy shall
Q: Do members of the LGBTQ+ have the right to not lapse for non-payment of premium if such non-
designate their partners as beneficiaries? payment was due to the failure of the insurer to send
A: Yes in cases where an individual secures a life its representative or agent to the insured at the
insurance policy on his or her own life, he or she residence of the insured or someplace indicated by
may designate any person as beneficiary provided him for the purpose of collecting such premium.
that such designation does not fall under the NOTE: However, this does not apply when the
enumerations provided in Article 739 of the Civil premium on the policy remains unpaid for a period
Code. (Insurance Commission, Legal Opinion No. of 3 months or 12 weeks after the grace period has
2020-02, dated March 04, 2020) expired.
Q: Who is an insurance agent? Q: Does a partner have an insurable interest in

A: Insurance agents are the legal representatives of the property of the partnership which will
insurers, the principals. A contract of insurance must support a separate policy for his benefit?
be assented to by both parties either in person or by A: Yes. When a partner takes a policy on the
their agents. partnership property in his own name, it includes his
separate interest alone, unless the “terms of the
Q: Rules on the principal-agent relationship in policy should be such as are applicable to the joint
an insurance policy. or common interest.” The policy procured by them
A: When property is in the possession of an agent, shall be applied exclusively to the proper interest of
the principal may insure the same as owner, while the person in whose name or for whose benefit it is
the agent who is responsible for such property may made unless otherwise specified.
likewise insure the same. If insurance is procured by
an agent and intended to cover interest of the
principal, this fact must be stated in the policy. If the

Q: Who is an assignee? Q: What are risks that may be insured?

A: An assignee is one who merely acquires the A: (1) Any contingent or unknown event, whether
rights of the insured. Thus, if the insured procured past or future, which may damnify (cause damage
the policy by fraud or misrepresentation, then the to) a person having an insurable interest; or (2) Any
assignee of the policy cannot be entitled to the contingent or unknown event, whether past or
proceeds as well. future, which may create a liability against the
person insured. (Insurance Code, Sec. 3)
Q: Mortgagor and mortgagee as parties to an
insurance contract. Q: When is the insurer liable for a past event?
A: Unless the policy otherwise provides, where a A: Ordinarily, the event covered by a policy is a
mortgagor of the property effects insurance in his future contingency. For a past event to be covered,
own name providing that the loss shall be payable it must be:
to the mortgagee, or assigns a policy of insurance 1. Unknown to both parties; and
to a mortgagee, the insurance is deemed to be upon 2. They must expressly stipulate that a prior loss
the interest of the mortgagor, who does not cease to is insured by the policy.
be a party to the original contract, and any act of his,
prior to the loss, which would otherwise avoid the NOTE: The Code does not authorize an insurance
insurance, will have the same effect, although the for or against the drawing of any lottery, any chance,
property is in the hands of the mortgagee, but any or ticket in a lottery drawing a prize. (Insurance
act which, under the contract of insurance, is to be Code, Sec. 4)
performed by the mortgagor, may be perform by the
mortgagee therein named, with the same effect as if Q: What are the types of insurable risks?
it had been performed by the mortgagor. (Insurance A: (1) Insurance against damage and (2) Insurance
Code, Sec. 8) against liability.
MORTGAGOR MORTGAGEE Q: Is an insurer liable for fortuitous events?

EXTENT OF INTEREST A: Yes. The nature of the insurer’s obligation
As owner, he has an As creditor with requires the assumption of risk.
insurable interest to security, has an
extent of the value of insurable interest in the INTERPRETATION OF INSURANCE CONTRACT
the property. mortgaged property to
the extent of the debt Q: Are insurance contracts considered
secured and does not contracts of adhesion?
exceed beyond the A: Yes. As a result, the terms of which must be
value of the mortgaged interpreted and enforced stringently against the
property. Mortgagee is insurer which prepared the contract. Note, however,
not insuring the that the cardinal rule is that “If the terms of a contract
property itself but his are clear and leave no doubt upon the intention of
interest or lien thereon the contracting parties, the literal meaning of its
as security of the stipulations shall control.” (Article 1307(1), CC)
mortgagor’s debt.
CONTINUING OF INTEREST 3. INSURABLE INTEREST
Interest continues even Interest continues only
if the debt has been until the mortgage debt Q: What is insurable interest?
paid. is extinguished. A: Interest which the law requires the owner of an
EXTENT OF RECOVERY insurance policy to have in the thing or person
Cannot recover that Cannot recover that insured.
which exceeds the full which (1) exceeds the
amount of loss. amount of credit at the Q: Rules on Insurable Interest.
time of loss AND (2) A: As a GR, it is pecuniary in nature in property or
exceeds the value of non-life insurance. A person is deemed to have an
the property insurable interest in the subject matter insured
mortgaged. where he has a relation or connection with or
concern in it that he will derive pecuniary benefit or
advantage from its preservation and will suffer
2. WHAT MAY AND MAY NOT BE pecuniary loss or damage from its destruction,
termination or injury by the happening of the event
INSURED insured against. (Lalican v. Insular Life Insurance

Co, G.R. No. 183526, 2009) Life Insurance is an Q: Insurable Interest in Life v. Property.
XPN. The expectation of benefit from the continued LIFE PROPERTY
life of that person need not necessarily be of BASIS
pecuniary nature. May be based on Based on pecuniary
pecuniary interest, interest.
Q: Insurable Interest in Life/Health. affinity, or
A: Every person has an insurable interest in the life consanguinity.
and health of: WHEN INTEREST MUST EXIST
• Himself, of his spouse and of his children; In life insurance (save Must exist when the
If a person will insure the life of another that effected by insurance takes effect
payable to himself, he must have an creditor on life of and when the loss
insurable interest in the life of the person debtor), it is enough occurs, but need not
whose life he is insuring. that insurable interest exist in the meantime.
• Any person on whom he depends wholly or in exists at the time the
party for education or support, or in whom he policy takes effect and
has pecuniary interest; need not exist at the
See Family Code, Art. 195. time of the loss.
• Any person under a legal obligation to him for AMOUNT OF INSURABLE INTEREST
the payment of money, or respecting property GR: No limit. Limited to the actual
or services, of which death or illness might XPN: If insurable value of
delay or prevent the performance; and interest is based on damage/injury/loss.
NOTE: A creditor may insure his debtor’s creditor-debtor
life for the purpose of protecting his debt, relationship, only to the
but only to the extent of the amount of the extent of the credit or
debt and the cost of carrying the insurance debt.
on the debtor’s life. WHEN BENEFICIARY MUST HAVE
• Any person upon whose life any estate or INSURABLE INTEREST
interest vested in him depends. (Insurance There is no need for No contract or policy of
Code, Sec. 10) the beneficiary to have insurance on property
insurable interest in the shall be enforceable
Q: Insurable Interest In Property. life insured, if the policy except for the benefit of
A: (a) Property itself; (b) Any relation thereto; or (c) owner is also the some person having an
Liability in respect thereof. (Insurance Code, Sec. insured. insurable interest in the
13). It may consist of: property insured.
1. An existing interest;
2. An inchoate interest founded on an existing Q: What is the general rule and exception to
interest; or change in interest of the thing insured?
3. An expectancy, coupled with an existing interest A: As a GR, a change in interest in the thing insured
in that out of which the expectancy arises. without a change in insurance does not transfer the
policy but suspends it until the interest in the thing
Q: What is the measure of insurable interest in and in the insurance are vested in the same person.
property? The XPNs are:
A: The extent to which the insured might be SEC. EXCEPTION
damnified by loss or injury thereof. In general, a 20 Life, health, and accident insurance.
person has an insurable interest in the property, if 21 A change of interest in the thing
he derives pecuniary benefit or advantage from its insured after the occurrence of an
preservation or would suffer pecuniary loss, damage injury which results in a loss.
or prejudice by its destruction whether he has or has 22 A change of interest in one or more of
no title in, or lien upon, or possession of the several things, separately insured by
property. Hence, pecuniary interest over the one policy.
property is always necessary.
23 A change of interest by will or
succession on the death of the insured.
Q: Can estoppel be invoked in ascertaining the
24 A transfer of interest by one of several
existence of insurable interest?
partners, joint owners, or owners in
A: No. Existence of insurable interest is a matter of
common, who are jointly insured, to the
public policy. Hence, the principle of estoppel
others.
cannot be invoked.
57 When a policy is so framed that it will
inure to the benefit of whomsoever,

during the continuance of the risk, may him, and such action may be brought
become the owner of the interest by the mortgagee even without
insured. including the mortgagor as party.
5. Upon recovery of the mortgagee to the extent of
Q: When does change of interest NOT suspend his credit from the insurer, the mortgagor is
an insurance contract? released from his indebtedness.
A: The change of interest contemplated by law is an
absolute transfer of the insured’s entire interest in Q: What is the effect when the insurance by
the property insured to one not previously interested mortgagee is of his own interest?
or insured. In the following cases, the policy is not A: The mortgagee may collect from the insurer upon
suspended: the occurrence of the loss to the extent of his credit.
1. Execution of a Mortgage Unless otherwise stated in the policy, the mortgagor
2. Lease of the insured property has no right to collect the balance of the proceeds
3. Vendor who has a Lien on the property sold until of the policy after payment of the interest of the
the purchase price is paid or the conditions of mortgagee. The insurer, upon payment to the
the sale are performed mortgagee-insured, becomes subrogated to the
4. Judgment debtor whose property has been sold rights of the mortgagee against the mortgagor and
on execution (Right to redeem) may collect the debt of the mortgagor to the extent
5. Mortgagor whose property has been foreclosed of the amount paid to the mortgagee.
(Right of redemption)
Q: What is a mortgage redemption insurance?
Q: What is the extent of insurable interest in a A: A mortgagee redemption insurance is a kind of
mortgage situation? life insurance procured by the mortgagor with the
A: The interest of the Mortgagor and the Mortgagee mortgagee as beneficiary up to the extent of the
in the mortgaged property is separate and distinct mortgage indebtedness.
from the other. In case both take out separate
insurance policies on the same property, or one
policy covering their respective interests, there is no Q: What is the effect of “Mortgagee
double insurance. The mortgagor, as owner, may Redemption” Insurance (MRI) procured by the
insure the property mortgaged to the full value of Mortgagor?
such property. On the other hand, the mortgagee A: In case the mortgagor-insured dies, the proceeds
can insure the same only to the extent of amount of of such insurance will be applied to the payment of
his credit. the mortgage debt to the mortgagee, thereby
relieving the heirs of the mortgagor of the burden of
Q: What is the effect when the insurance by the paying debt. Where the mortgagor pays the
mortgagor (MR) for the benefit of the mortgagee insurance premium under the MRI, making the loss
(ME) is assigned to the latter? payable to the mortgagee, the insurance is still on
1. The insurance is still deemed to be upon the the mortgagor’s interest, and the mortgagor
interest of the mortgagor who does not cease to continues to be a party to the contract, while
be a party to the original contract. mortgagee is simply a beneficiary of the insurance
2. Any act of the mortgagor, prior to the loss, which to the extent of the unpaid indebtedness and does
would otherwise avoid the insurance, will have not make the mortgagee a party to the contract.
the same effects, although the property is in the
hands of the mortgagee. Q: Standard or Union Mortgage Clause v. Open
3. Any act, which under the contract of insurance or Loss-Payable Mortgage Clause
is to be performed by the mortgagor, may be STANDARD/UNION OPEN
performed by the mortgagee with the same If a fire insurance It is a contract which
effect as if it has been performed by the policy contains this, the provides that the
mortgagor. acts of the mortgagor payment of loss to the
4. Upon the occurrence of the loss, the mortgagee do not affect the mortgagee, if any, will
is entitled to recover to the extent of his credit mortgagee. It makes a be according to his
and the balance, if any, is payable to the separate and distinct interest as it may
mortgagor since such policy is for the benefit of contract of insurance appear in the contract.
both the mortgagor and mortgagee. on the interest of the Under such clause, the
a. The mortgagee is the proper party to mortgagee. acts of the mortgagor
prosecute an action for a loss will affect the
sustained under a policy of insurance mortgagee.
where the loss was made payable to

4. DOUBLE INSURANCE AND OVER Subject of insurance is Subject of insurance is

INSURANCE property. the original insurer’s
risk.
Insured has to give his Consent of original
Q: Double Insurance v. Over insurance consent. insured, not necessary.
DOUBLE OVER INSURANCE
INSURANCE
REQUISITES: 5. NO FAULT CLAUSE, SUICIDE AND
The person injured is INCENTESTABILITY CLAUSE
the same;
There are two or more NO FAULT CLAUSE: CASUALTY INSURANCE
insurers insuring Q: What is casualty insurance?
separately; A: It is an insurance covering loss or liability arising
The subject matter is from accident or mishap, excluding those falling
the same; under fire, suretyship, life or marine insurance.
The interest insured is (Insurance Code, Sec. 176)
also the same;
The risk or peril insured Q: Is accident synonymous with no fault?
against is likewise the A: Not necessarily. It may be utilized simply to
same. distinguish intentional or malicious acts from
There may be no over Amount of insurance is negligent or careless acts of man (Pan Malayan
insurance as when the beyond the value of the Insurance Corp. v. CA, G.R. No. 81026, 1990).
sum total of the insured’s insurable • Accident: That which happens by chance or
amounts of the policies interest. fortuitously, without intention or design, which is
issued does not unexpected, unusual and unforeseen (Sun
exceed the insurable Insurance v. CA, G.R. No. 92383, 1992)
interest of the insured.
Several insurers May have only one Q: What is third party liability insurance?
involved. insurer involved. A: Insurance against specified perils which may give
rise to liability on the party of the insured for claims
Q: Insurance v. Reinsurance for injuries to or damage to property of others. (ex.
INSURANCE REINSURANCE Motor Vehicle, Professional, and Product Liability)
Written document Any contract by which
embodying the terms an insurer procures a Q: Right of the Injured Person to Sue Insurer of
and stipulations of the 3rd person (or the the Party at Fault. (Guingon v. Del Monte, G.R. No.
contract of insurance reinsurer) to insure him L-22042, 1967)
between the insured against loss or liability
and insurer. by reason of an original SCENARIO EFFECT
insurance. The contract provides 3rd persons, to whom
Formal written The original contract of for indemnity against the insured is liable,
instrument evidencing insurance and the liability to 3rd persons. CAN sue the insurer.
the contract of contract of reinsurance The contract is for 3rd persons CANNOT
insurance. are covered by indemnity against proceed against the
separate policies. actual loss or payment. insurer.
Q: Reinsurance v. Double Insurance NOTE: The injured person may sue the insurer and
DOUBLE REINSURANCE the person at fault, notwithstanding the stipulation
INSURANCE against suing the insurer (“no-action” clause) in the
Involves the same Insurance of different policy. Where casualty insurance insures against
interest. interests. liability, then an injured third party may have direct
Insurer remains in such Insurer becomes an recourse against the insurance. On the other hand,
capacity. insured in relation to if the casualty insurance insures against loss, then
Reinsurer. an injured third party will not be able to directly sue
Insured in the 1st Original insured has no the insurer.
contract is a party in interest in reinsurance
interest in the 2nd contract. NO FAULT CLAUSE: COMPULSORY MOTOR
contract. VEHICLE LIABILITY INSURANCE

Q: What is a Motor Vehicle? Q: Who is the proper insurer to claim from?

A: It shall mean any vehicle propelled by any power A: In the case of an occupant of a vehicle, the claim
other than muscular power using the public shall lie against the insurer of the vehicle in which
highways. (R.A. No. 4136, Sec. 3[a]) the occupant is riding, mounting or dismounting
• Exceptions: Road rollers, trolley cars, street from. If not an occupant, the claim shall lie against
sweepers, sprinklers, lawn mowers, bulldozers, the insurer of the directly offending vehicle.
graders, forklifts, amphibian trucks, and cranes
if not used in public highways, vehicles which SUICIDE CLAUSE
run only on rails or tracks, and tractors, trailers
and traction engines of all kinds used Q: When is the insurer still deemed liable even
exclusively for agricultural purposes. when there is a suicide clause?
A: The insurer is LIABLE in the ff cases:
Q: Scope of Coverage Required. 1. Suicide was committed after the policy has
OWNERS OF OPERATION OF been in force for a period of two years from the
PRIVATE MOTOR LAND date of its issue or its last reinstatement;
VEHICLES TRANSPORTATION 2. Suicide was committed after the policy has
Comprehensive Comprehensive been in force for a shorter period provided in the
against 3rd party against 3rd party policy, counted from the date of its issue or its
liability for death or liability for death or last reinstatement; or
bodily injuries. bodily injuries 3. Suicide committed in a state of insanity
regardless of the date of the commission of the
In case a private motor The insurer may suicide (Insurance Code, Sec. 183)
vehicle is being used to extend additional other
transport passengers risks at its option. Q: When is the insurer no longer liable?
for compensation, such A: The insurer is NOT liable in the ff cases:
coverage shall, in 1. The suicide is not by reason of insanity and is
addition, include committed within the two-year period;
passenger liability. 2. The suicide is by reason of insanity but is not
among the risks assumed by the insurer
Q: What are conditions for application of the no regardless of the date of commission; and
fault indemnity clause in a compulsory motor 3. The insurer can show that the policy was
vehicle liability insurance? obtained with the intention to commit suicide
1. The claim must be for death or bodily injuries even in the absence of any suicide exclusion in
only (property damage/liability not included). the policy.
2. The total indemnity in respect of any person
shall not be less than fifteen thousand pesos Q: Summary of points in the application of a
(P15,000). suicide clause in a life insurance contract.
3. The following proofs of loss, when submitted A: The insurer in a life insurance contract shall be
under oath, shall be sufficient evidence to liable in case of suicide only when it is committed
substantiate the claim: after the policy has been in force for a period of two
a. Police report of accident; and (2) years from the date of its issue or of its last
b. Death certificate and evidence reinstatement, unless the policy provides a shorter
sufficient to establish the proper payee; period. Provided, however, that suicide committed
or, in the state of insanity shall be compensable
c. Medical report and evidence or regardless of the date of commission. (Insurance
medical or hospital disbursement in Code, Sec. 183)
respect of which refund is claimed. NOTE: Any stipulation extending the 2-year period
4. Claim may be made against one motor vehicle is void.
only.
a. Against the insurer of the vehicle Q: Rules on killing of the insured done by the
where one is a passenger; beneficiary.
b. In any other case, the offending A: As a GR, the interest of a beneficiary in a life
vehicle. insurance policy shall be forfeited when the
beneficiary is the principal, accomplice, or
Q: Who is considered a claimant? accessory in willfully bringing about the death of the
A: The claimant or victim may be a “passenger” or a insured.
“third party” (Insurance Code, Sec. 391)

• In such a case, the share forfeited shall pass on Q: What is the period of contestability in
to the other beneficiaries, unless otherwise reinstated policies?
disqualified. A: When the policy lapses and is subsequently
• In the absence of other beneficiaries, the reinstated, the 2 year period of contestability should
proceeds shall be paid in accordance with the start from the date of last reinstatement because a
policy contract. reinstated policy should be viewed as a new
• If the policy contract is silent, the proceeds shall contract.
be paid to the estate of the insured. (Insurance
Code, Sec. 12) Q: What defenses are NOT barred by the
Q: What are the exceptions to the rule? incontestability clause? (PIME-TFC)
1. Accidental killing; 1. Premiums have not been paid;
2. Self-defense; and 2. Person taking the insurance lacked Insurable
3. Insanity of the beneficiary at the time he killed interest as required by law;
the insured. 3. Conditions of the policy relating to Military or
naval service have been violated;
INCONTESTABILITY CLAUSE 4. Cause of death of insured is Excepted risk;
5. Action was not brought within Time specified.
Q: What is an incontestable clause? 6. The Fraud is of a particularly vicious type,
A: An incontestable clause is an agreement by wherein:
which the insurance company limits the period of i. The policy was taken in furtherance of
time within which it will interpose objections to the a scheme to murder the insured;
validity of the policy or set up any defense. ii. The insured instituted another person
for the medical examination; and,
Q: What are the requisites of an incontestability iii. The beneficiary feloniously killed the
clause? insured;
A: The requisites are as follows: 7. Beneficiary failed to furnish proof of death or to
1. Must be a Life insurance policy. comply with any Condition imposed by the
2. Payable on the Death of the insured. policy after the loss has happened.
3. In force during the lifetime of the insured for at
least 2 years from its date of issue or of its last Q: When is the insurer liable for loss? (PINE)
reinstatement. 1. Loss, the Proximate cause of which is the peril
NOTE: The period of 2 years may be shortened but insured against;
it cannot be extended by stipulation. 2. Loss, the Immediate cause of which is the peril
insured against except where proximate cause
Q: What is the effect of an incontestability is an excepted peril;
clause? 3. Loss through the Negligence of insured except
A: When all requisites are present, the insurer can where there was gross negligence amount to
no longer escape liability nor be allowed to prove willful act; and
that the policy is void ab initio or rescindable. The 4. Loss caused by Efforts to rescue the thing from
insurer is precluded from contesting the policy on peril insured against – if during the course of
any ground. The purpose of the clause was to rescue, the thing is exposed to a peril not
prevent the inequities perpetrated by insurance insured against, which permanently deprives
companies of fishing for evidence to show that the the insured of its possession, in whole or in part.
insured made false representations to escape
liability on the policy. Q: When is the insurer NOT liable for loss?
1. Loss by insured’s willful act or gross negligence;
Q: What is the period of incontestability? 2. Loss due to connivance of the insured;
A: The insurer must rescind the life insurance 3. Loss where the excepted peril is the proximate
contract on the ground of concealment or cause.
misrepresentation within 2 years from the time the
policy was issued provided the insured is still alive B. PERFECTION OF INSURANCE
at that time. After the 2-year period lapses, or when CONTRACT
the insured dies within the period, the insurer must
make good on the policy, even though the policy Q: What is the nature of an insurance contract?
was obtained by fraud, concealment, or A: It is consensual. A contract of insurance must be
misrepresentation. (Sun Life v. Sibya, G.R. No. assented to by both parties, either in person or
211212, 2016) through their agents. (Perez v. CA, G.R. No.

112329, 2000). Thus, there is no perfection of an Q: What is the effect of non-payment of FIRST
insurance contract in any of the following cases: premium?
● Submission of application, even with premium A: As a general rule, it prevents the contract from
payment, is a mere offer; becoming binding notwithstanding the acceptance
● Where the applicant dies before the approval of of the application or the issuance of the policy. But
his application or it does not appear that the non-payment of the balance of the premium due
acceptance of the application ever came to the does not produce the cancellation of the contract.
knowledge of the applicant; or (Phil. Phoenix Surety & Insurance v. Woodworks,
● An acceptance made by letter except from the G.R. No. L-22684, Aug. 31, 1967).
time it came to the knowledge of the person
making the offer. (Enriquez v. Sun Life Q: What is the effect of non-payment of
Assurance, G.R. No. L-15895, 1920) SUBSEQUENT premiums?
A: They do not affect the validity of the contracts
Q: How is consent manifested? unless, by express stipulation, it is provided that the
A: Assent or consent is manifested by the meeting policy shall in that event be suspended or shall
of the offer and the acceptance upon the thing and lapse.
the cause which are to constitute the contract.
(Insurance, de Leon, p.176). Q: Are the exceptions to the rule? (GAITE)
1. Whenever the Grace period provision applies In
Q: Is the delivery of the policy a prerequisite to case of life and industrial life insurance;
the validity of an insurance contract? Individual Life or Endowment
A: No. (Insurance, de Leon, p.180). Insurance and Group Life Insurance:
Grace period of 30D within which the
Q: What is a premium? payment of any premium after the first
A: A premium is the consideration paid to an insurer premium payment may be made.
for undertaking to indemnify the insured against a Industrial Life Insurance: Grace period
specified peril. is 4 weeks, or if payment be made
monthly, 30D.
Q: What are the rights and obligations of the 2. Where there is an Acknowledgement in the
insurer in terms of payment of premium? contract that the premium had already been
A: An insurer has the right to receive premiums to paid. (Insurance Code, Sec. 79)
be paid by the insured. Notwithstanding any 3. An agreement allowing the insured to pay the
agreement to the contrary, no policy or contract of premium in Installments and partial payment
insurance issued by an insurance company is valid has been made at the time of loss (Makati
and binding unless and until the premium thereof Tuscany Condominium v. Court of Appeals,
has been paid, except in the case of a life or an G.R. No. 95546, 1992)
industrial life policy whenever the grace period i. Cf. Where the policy provides for
provision applies, or whenever under the broker and payment in premium in full before the
agency agreements with duly licensed “policy shall be deemed effective, valid,
intermediaries, a ninety (90)-day credit extension is and binding upon the company” – the
given. No credit extension to a duly licensed partial payment is merely treated as a
intermediary should exceed ninety (90) days from deposit and does not make the policy
date of issuance of the policy. (Insurance Code, binding. (Sps. Tibay v. CA, G.R. No.
Sec. 77) 119655, 1996)
4. Where a credit Term was agreed upon like the
Q: What are the rights and obligations of the agreement wherein the insurer granted a 60-90-
insured in terms of payment of premium? day credit term for the payment of the premiums
A: An insured is entitled to payment of premium as despite full awareness of Section 77 (UCPB
soon as the thing insured is exposed to the peril General Insurance, Inc. v. Masagana Telemart,
insured against (Insurance Code, Sec. 77). G.R. No. 137172, 1999)
Furthermore, since contracts of insurance are 5. Where the parties are barred by Estoppel. (Jose
contracts uberrimae fidei (i.e. good faith), the insurer Marques, et al. vs. Far East Bank and Trust
has a right to depend on the utmost good faith of the Company, et al. G.R. No. 171379, 2011)
insured regarding the nature of the risk to be
assumed. (Philippine Commercial Laws: The Q: What is the effect of the SC’s decision in
Insurance Code Vol. 1 Commentary, Hernando B. Chartis Philippines Insurance Inc. v. Cyber City
Perez) Teleservices Ltd (G.R. No 234299) in the useful
evaluation of Section 77?

1. If the insured paid the premium, the insurer's 3. Apply such value as the premium for a Paid-up
liability attaches correspondingly. insurance; and
2. If the insured did not pay the premium and the 4. Secure from such value an Automatic premium
parties did not agree that the insurer's liability loan before the expiration of the grace period.
has attached, then there is no valid or binding
contract of insurance. Q: What is a Cash Surrender Value?
3. If the insured did not actually pay the premium A: An amount to be paid to the insured upon
but the parties have agreed that the insurer's surrender of the policy contract, if provided in the
liability has attached, then the insured is policy contract.
considered to have extended credit on the
premium. Q: What are alternatives to a Cash Surrender
Value, if any?
Q: Does an agent have authority to receive 1. Extended Insurance/Term Insurance
premiums? • Here, after the payment of at least three full
A: Yes. Where an insurer authorizes an insurance annual premiums, the insured is given the
agent or broker to deliver a policy to the insured, it right, upon default, to have the policy
is deemed to have authorized said agent to receive continued in force from the date of default
the premium in its behalf. for a time either stated or equal to the
amount as the net value of the policy taken
Q: When is the insured entitled to return of as a single premium, will purchase. (See
premiums paid? (ELFS-ROI) Sec. 227[f])
1. The thing insured was never Exposed to the • In case of death of the insured within the
risks insured against; extended term, he may recover the face
2. Contract is voidable due to the Fraud or value of the policy. (De Leon, The
misrepresentation of insurer; Insurance Code of the Philippines
3. Insurer never incurred Liability; Annotated [2014])
4. The insurance is for a definite period and the 2. Paid-up Insurance
insured Surrenders his policy before the • Here, after the payment of at least three
termination thereof (pre-termination); annual premiums, the insured is given the
5. Contract is voidable because of the existence of right, upon default, to have the policy
facts of which the insured was Ignorant without continued in force from the date of default
his fault; for the whole period of the insurance
6. There is Over-insurance (but only a ratable without further payment of premiums. (See
return of premium); and Sec. 227[f]).
7. Rescission is granted due to the insurer’s • In case of death of the insured, he may
breach of contract. recover only the "paid-up" value of the
policy, usually less than the "paid-up"
Q: Is there a corresponding payment of interest premiums, under the same conditions as
on refund of premiums? the original policy. (De Leon, The Insurance
A: Only when there is unjustified refusal or Code of the Philippines Annotated [2014])
withholding of payment of claim by the insurer (only 3. Automatic Premium Loan
for variable life insurance; Insurance Code, Sec. 243 • This provision protects against the
and 244). Article 2209 of the Civil Code likewise unintentional lapse of the contract by
provides for payment of interest when the debtor is advancing, in the form of policy loan, the
in delay. However, in cases where the refusal to unpaid amount of a premium due. This
refund insurance premiums is because the insurer helps to continue the contract and all its
wants to rescind the contract due to concealment, features in full force and effect.
the insurance company did not unreasonably deny
or withhold the insurance proceeds (Sun Life v. Tan Q: What are the necessary conditions?
Kit, G.R. No. 183272, 2014). 1. In the event of default in premium payment, the
Premium Loan provision shall only apply if
Q: What are the options available to a requested in writing by the policyholder either in
policyholder in case of non-payment of premium the application or at any time before the
after three full annual premiums have been expiration of the grace period.
paid? (REPA) 2. The moment there is default in premium
1. Receive the cash surrender value; payment and no option has been elected either
2. Apply such value as the premium for an in the application or within the time specified in
Extended insurance; the policy, one of the paid-up options specified

therein shall automatically take effect. (De this amount must be

Leon, The Insurance Code of the Philippines considered, by
Annotated [2014]) agreement of the
insurer and the
Q: Is the insurance policy necessary for the insured, the actual
perfection of a contract? value of the property in
A: No. The Policy is only the formal written the absence of
instrument evidencing the contract. HOWEVER, an evidence of greater or
insurer is potentially exposed to sanctions unless lesser value. (Dev’t Ins.
the approval of the Commissioner is secured in: Corp. v. IAC, G.R. No.
1. The policy, certificate or contract of insurance L-71360, 1986).
before it shall be issued or delivered within the Definite valuation is
Philippines; agreed upon by both
2. The application form that shall be used with parties, and written on
such policy, certificate or contract; VALUED POLICY the face of the policy
3. The rider, clause, warranty or endorsement i.e. Marine and Fire
shall be attached to, printed or stamped upon Insurance (Insurance
such policy, certificate or contract (Insurance Code, Sec. 51)
Code, Sec. 232) Contemplates
successive insurances
Q: What are the formal requirements of an and provides that the
insurance policy? RUNNING POLICY subject of policy may
A: It must be (1) in printed form which may contain from time to time be
blank spaces; and (2) filled out with any word, defined. (Insurance
phrase, clause, mark, sign, symbol, signature, Code, Sec. 62)
number or words necessary to complete the
contract (Insurance Code, Sec. 50) Q: What are considered void stipulations in an
insurance contract?
Q: What are the contents of an insurance policy? A: (1) Payment of loss whether the person insured
(PAPPI-RIP) has any interest in the property insured or not; (2)
1. The Parties between whom the contract is Policy shall be received as proof of such interest; or
made; (3) Policies executed by way of gaming or wagering.
2. The Amount to be insured except in the cases
of open or running policies; Q: What does delivery of the policy prove?
3. The Premium, or if the insurance is of a A: Delivery of the policy by the insurer to the insured
character where the exact premium is only is the best evidence to prove that a contract has
determinable upon the termination of the been entered into between the insurer and the
contract, a statement of the basis and rates insured.
upon which the final premium is to be
determined; Q: What happens when there is a reinstatement
4. The Property or Life insured; of a lapsed policy?
5. The Interest of the insured in property insured, A: The policyholder shall be entitled to have the
if he is not the absolute owner thereof; policy reinstated at any time within 3 years (for
6. The Risks insured against; and individual life or endowment insurance) from the
7. The Period during which the insurance is to date of default of premium payment unless the cash
continue. (Insurance Code, Sec. 50) surrender value has been duly paid, or the extension
period has expired, upon production of evidence of
Q: Kinds of Policies. insurability satisfactory to the company and upon
OPEN OR Value of thing insured payment of all overdue premiums and any
UNVALUED POLICY is not agreed upon, but indebtedness to the company upon said policy, with
left to be ascertained in interest rate not exceeding that which would have
case of loss (Insurance been applicable to said premiums and indebtedness
Code, Sec. 60). The in the policy years prior to reinstatement.
parties may agree on
the maximum amount Q: Requisites for reinstatement of lapsed Life
of recovery or limit to Insurance Policy. (3G-AD-NO)
the liability of the 1. Application shall be made within three (3) years
insurer. In case of loss, from the date of lapse;

2. There should be a production of evidence of the 2. A cover note shall be deemed to be a contract
Good health of the insured: of insurance within the meaning of Section 1(1)
3. If the rate of premium depends upon the Age of of the Code.
the Beneficiary, there should likewise be a 3. No cover note shall be issued or renewed
production of evidence of his or her good health; unless in the form previously approved by the
4. There should be presented such other evidence Insurance Commission.
of insurability at the Date of application for 4. A cover note shall be valid and binding for a
reinstatement; period not exceeding sixty (60) days from the
5. There should be No change which has taken date of its issuance, whether or not the premium
place in such good health and insurability therefor has been paid. But such cover note
subsequent to the date of such application and may be cancelled by either party upon at least
before the policy is reinstated; and seven (7) days’ notice to the other party.
6. All Overdue premiums and other indebtedness 5. If a cover note is not so cancelled, a policy of
in respect of the policy, together with interest at insurance shall, within sixty (60) days after the
six per cent, compounded annually, should first issuance of such cover note, be issued in lieu
be paid. (Andres v. Crown Life Insurance Co., thereof. Such policy shall include within its
G.R. No. L-10874, 1958) terms the identical insurance bond under the
cover note and the premium.
Q: What are Riders/Endorsements? 6. Cover notes may be extended or renewed
A: Attachment to an insurance policy that modifies beyond such sixty (60) days with the written
the conditions of the policy by expanding or approval of the Commissioner that such
restricting its benefits or excluding certain conditions extension is not contrary to and is not for the
from the coverage. purpose of violating any provisions of this Code.
The Commissioner may promulgate rules and
Q: Formal Requirements of Riders? regulations governing such extensions to
A: Riders, together with other attachments to the prevent such violations and dispense with the
policy, like clause, warranty or endorsements, are requirement of written approval by him in the
not binding won the insured unless: case of extension in compliance with such rules
1. The descriptive title or name thereof is and regulations. (Section 52, Insurance Code)
mentioned and written on the blank spaces 7. Insurance companies may impose on cover
provided in the policy and; notes a deposit premium equivalent to at least
2. Countersigned by insured or owner. 25% of the estimated premium of the intended
XPN: No need to countersign if the rider or other insurance coverage but in no case less than
attachment is applied for by the insured or owner of P500.00. (Ins. Cir. Letter, Jan. 17, 1980.) (De
the policy. Leon, The Insurance Code of the Philippines
Annotated [2014])
Q: Does a rider containing an “Automatic
Increase Clause” a separate contract? Q: Do separate premiums have to be paid on a
A: No. It is in the nature of a conditional obligation cover note?
(CIR v. Lincoln Philippine Life Insurance Company, A: No. By their nature, cover notes do not contain
G.R. No. 119176, March 19, 2001). particulars that would serve as basis for the
computation of the premiums and consequently, no
Q: If there is inconsistency between the policy separate premiums are intended or required to be
and the rider, which one prevails? paid therefor. (Pacific Timber Export Corp. v. CA,
A: The rider, it being a more deliberate expression G.R. No. L-38613, 1982)
of the agreement.
C. RIGHTS AND OBLIGATIONS OF
Q: What is a cover note? PARTIES
A: It is a contract for temporary insurance for a
reasonable time until the policy or policies can be The questions under this topic are integrated with
written or issued by the insurer. the other topics.
Q: What are the rules on cover notes?
D. RESCISSION OF INSURANCE
1. Insurance companies doing business in the
Philippines may issue cover notes to bind CONTRSCTS
insurance temporarily, pending the issuance of
the policy. Q: What are the devices of the insurer in
ascertaining and controlling risks?

A: Concealment, Representation, Warranties, 2. Where it was possible for the agent, in the
Conditions, and Exceptions (stipulations excluding exercise of reasonable diligence, to have made
certain specified risks that otherwise would be the communication before the making of the
included under the general language describing the insurance contract.
risks assumed).
NOTE: Failure on the part of the insured to disclose
Q: Requisites of Concealment. (KDNA) such facts known to his agent, or wholly due to the
1. A party Knows the fact which he neglects to fault of the agent, will avoid the policy, despite the
communicate or disclose to the other; good faith of the insured.
2. Such party concealing is Duty bound to disclose
such fact to the other; Q: What are things which a party must disclose
3. Such party concealing makes No warranty of to the other, in good faith, even without inquiry?
the fact concealed; and ● Party concealing must have knowledge of the
4. The other party has not the means of facts concealed;
Ascertaining the fact concealed. ● Facts concealed must be material to the risk;
● Party is duty bound to disclose such fact to the
Q: Does fraud have to be proven in order to other;
prove concealment? ● Party concealing makes no warranty as to the
A: Generally, no. Concealment, regardless of actual facts concealed;
intent to defraud, "is equivalent to a false ● Other party has no other means of ascertaining
representation." (Insular Life vs Heirs of Alvarez, the facts concealed.
G.R. No. 207526) Good faith is also not a defense.
(Saturnino vs Phil. American Life Insurance, G. R. Q: What are items to disclose upon inquiry?
No. L-16163, 1963) A: As a general rule, neither party to the insurance
contract is bound to communicate information on the
Exception: When the concealment is made by the following matters, except in answer to the
insured in relation to the falsity of a warranty, the inquiries of the other: (KOWP)
non-disclosure must be intentional and fraudulent in 1. Those of which the other Knows;
order that the contract may be rescinded. (Insurance 2. That which, in the exercise of Ordinary care, the
Code, Sec. 29) other ought to know and of which the former has
no reason to suppose his ignorance, i.e. political
Q: What is the effect of concealment? situation, general usages of trade;
A: As a GR, concealment, whether intentional or 3. Those of which the other Waives
not, entitles the injured party to rescind a contract of communication;
insurance (Insurance Code, Sec. 27), even if the 4. Those which prove or tend to prove the
death or loss is due to a cause not related to the existence of the risk excluded by a Warranty
concealed matter. (Sunlife v. CA, G.R. No. 105135, and which are not otherwise material; and
1995) 5. Those which relate to a risk excepted from the
Policy and which are not otherwise material.
Exceptions: (WAIM) (Insurance Code, Sec. 30)
1. Waiver or estoppel;
2. Incontestability Clause (Insurance Code, Secs. Q: Is the insured required to communicate the
48 and 233[b]) nature or amount of his insurable interest in the
3. Concealment made After the contract has life or property insured to the insurer?
become effective; A: As a general rule, no. The exceptions are as
4. In Marine insurance, in situations where follows:
concealment does not vitiate the entire contract, 1. When the insurer makes inquiry from the
but merely exonerates the insurer from a loss insured of the nature or amount of the latter’s
resulting from the risk concealed (Insurance insurable interest, whether in life or property
Code, Sec. 112). insurance; or
2. Insurance policy must specify the interest of the
Q: What are the instances when concealment insured in the property insured, if he is not the
made by an agent procuring the insurance binds absolute owner thereof.
the principal?
1. Where it was the duty of the agent to acquire Q: When is there a waiver of disclosure of
and communicate information of the facts in material facts?
question; or A: (1) By the terms of the insurance (express
waiver); or (2) By the neglect to make inquiry as to

such facts, where they are distinctly implied in other or withdrawn before the insurance is effected, but
facts which information is communicated (implied not afterwards. (Insurance Code, Sec. 47)
waiver). (Insurance Code, Sec. 33)
Q: Requisites for Misrepresentation. (UWiM)
Q: Is there a duty to disclose opinions? 1. The insured stated a fact which is Untrue;
A: None, because such opinion would add nothing 2. Such fact was stated with knowledge that it is
to the appraisal of the application. (Insurance Code, untrue and With Intent to deceive or which he
Sec. 35) states positively as true without knowing it to be
true and which has a tendency to mislead;
Q: How is materiality to be determined? 3. Such fact in either case is Material to the risk.
A: Materiality is to be determined not by the event,
but solely by the probable and reasonable influence Q: Is misrepresentation considered an
of the facts upon the party to whom the affirmative defense?
communication is due in forming his estimate of the A: Yes. To avoid liability, the insurer has the duty to
disadvantages of the proposed contract; or in establish such a defense by satisfactory and
making his inquiries. (Insurance Code, Sec. 31) convincing evidence. (Ng Gan Zee v. Asian
Crusader, G.R. No. L-30685, 1983)
Q: What is the test of materiality?
A: “Was the insurer misled or deceived into entering Q: What are the kinds of representation?
a contract obligation or in fixing the premium of 1. Affirmative - an affirmation of a fact existing
insurance by a withholding of material information or when the contracts begins; or
facts within the assured’s knowledge or presumed 2. Promissory - a statement by the insured
knowledge?” (Argente v. West Coast Life, G.R. No. concerning what is to happen during the term of
L-24899, 1928) the insurance.
Q: Materiality in Medical Examinations. Q: What is the effect of expressions of opinion

A: As a general rule, non-disclosure is tantamount or expectation on an Insurance Policy?
to concealment. Where the applicant concealed the A: A representation of the expectation, intention,
fact that he had pneumonia, diabetes or syphilis, the belief, opinion or judgment of the insured, although
policy is avoided although the cause of the death false, WILL NOT AVOID the policy if there is no
(e.g., plane crash) be totally unconnected with the actual fraud in inducing the acceptance of the risk,
material fact concealed or misrepresented. or its acceptance at a lower rate of premium (Philam
Health Systems v. CA, G.R. No. 125678, 2002);
Exception: Imprecise description of information is However, in marine insurance, information of the
not concealment. belief or expectation of a third person, in reference
• In the absence of evidence that the insured to a material fact, is material. (Insurance Code, Sec.
had sufficient medical knowledge, his 110)
statement that said tumor was "associated
with peptic ulcer" must be presumed to Q: Rule on adoption of misrepresentation.
have been made by him without knowledge A: An insured who signed the pension plan
of its incorrectness and without deliberate application, adopted as his own the written
intent to mislead the insurer. (Ng Zee v. representations and declarations embodied in it
Asian Crusader, G.R. No. L-30685, 1983) (Ma. Lourdes S. Florendo vs. Philam Plans, Inc.,
Perla Abcede, et al., G.R. No. 186983, 2012).
Q: What is misrepresentation?
A: It is a factual statement made by the insured at Q: What is the effect of misrepresentation?
the time of, or prior to, the issuance of the policy, to A: The injured party is entitled to rescind from the
give information to the insurer and otherwise induce time when the representation becomes false.
him to enter into the insurance contract. A (Insurance Code, Sec. 45)
representation cannot qualify an express provision
in a contract of insurance but it may qualify an Q: What is the test of materiality?
implied warranty. (Insurance Code, Sec. 40) A: The injured party can rescind the contract (1)
when the representation fails to correspond with the
Q: When is misrepresentation made? facts (Insurance Code, Sec. 44); and (2) when it is
A: It may be made orally or in writing. It may be false in a material point (Insurance Code, Sec. 45)
made at the time of, or before, the issuance of the
policy. (Insurance Code, Sec. 37) It may be altered

NOTE: The materiality of a representation is

Part of the contract. Collateral
determined by the same rules as the materiality of
inducement.
concealment. (Insurance Code, Sec. 46)
Written on the policy Need not be written.
Q: Concealment v. Misrepresentation.
or in a valid rider or
CONCEALMENT MISREPRESENTATION attachment. (except
for implied
The insured withholds The insured makes warranties)
information of erroneous statements
material facts from of facts with the intent Generally, Should be
the insurer. of inducing the insurer conclusively established to be
to enter into the presumed to be material.
insurance contract. material.
Passive form of the Active form of the act. Falsity or non- Falsity renders the
act. fulfillment operates policy voidable or
as a breach of rescissible on the
Usually occurs prior May be made at the contract. ground of fraud.
to making of the time of the insurance
insurance contract. of the contract. Facts warranted must Requires only to be
be strictly complied substantially true.
In cases of rescission In cases of rescission with.
due to concealment, due to
proof of fraudulent misrepresentation,
intent not necessary proof of fraudulent Q: Where must the express warranty be
intent necessary contained?
A: Either (1) in the policy itself; or (2) in another
instrument signed by the insured and referred to in
The Insurance Code dispenses with proof of the policy as making a part of it.
fraudulent intent in cases of rescission due to
concealment, but not so in cases of rescission due Q: What is the effect of omission or breach?
to false representations. (The Insular Life Assurance A: As a GR, The violation of a material warranty or
Co., Ltd. v. Heirs of Alvarez, G.R. Nos. 207526 & other material provision of the policy gives the
210156, 2018) insurer the right to rescind the insurance policy
(Insurance Code, Sec. 74)
Q: What is breach of warranty?
A: A statement or promise set forth in the policy or NOTE: A policy may declare that a violation of
by reference incorporated therein, the untruth or specified provisions shall avoid it. Otherwise, the
nonfulfillment of which in any respect, and without breach of an immaterial provision does not avoid the
reference to whether insurer was in fact prejudiced policy. (Insurance Code, Sec. 75)
by such untruth or non-fulfillment, renders the policy
VOIDABLE by the insurer. Q: What are the instances of warranties relating
to the future (XPN to GR)?
Q: What are the kinds of breach of warranty? A: There are three instances
1. Express – An agreement contained in the 1. Loss occurs before the time of performance of
policy as part thereof the warranty;
2. Implied – They are found usually in marine 2. The performance becomes unlawful;
insurance. 3. Performance becomes impossible. (Section 73,
3. Affirmative – Asserts the existence of a fact or Insurance Code)
condition at the time it is made;
4. Promissory – The insured stipulates that NOTE: Waiver or estoppel may also prevent the
certain facts or conditions shall exist or thin shall insurer from being discharged from liability (Pioneer
be done or omitted. v. Yap, G.R. No. L-36232, 1974)
Q: Warranty v. Representation. Q: What is an Other Insurance Clause?

WARRANTY REPRESENTATION A: This is a clause in the policy that provides that
the policy shall be void if the insured procures
additional insurance without the consent of the

insurer. The “other insurance clause” may be

subject to waiver but the waiver must either be Q: When are the defects in the notice of loss
express or if it is to be implied from conduct mainly, deemed waived?
said conduct must be clearly indicative of a clear A: All defects in a notice of loss, or in preliminary
intent to waive such right. There must be clear proof thereof, which the insured might remedy, and
showing that the insurer knew about the violation of which the insurer omits to specify to him, without
the clause. (General Insurance and Surety Corp. v. unnecessary delay, as grounds of objection, are
Ng Hua, G.R. No 14373, 1960). waived. (Insurance Code, Sec. 92)
When may an insurer exercise the right to Q: When is delay in the presentation of notice or
rescind the insurance contract? proof of loss is deemed waived?
A: In a Non-Life Policy, prior to the commencement A: Delay in the presentation to an insurer of notice
of an action on the contract itself; In a Life Policy, or proof of loss is waived if caused by any act of him,
before the incontestability clause sets in. or if he omits to take objection promptly and
specifically upon that ground. (Insurance Code, Sec.
Q: Grounds for Cancellation of a Non-Life Policy 93)
by the Insurer. (PC-FIPD) NOTE: A notice of claim under Compulsory Motor
1. Non-payment of Premium; Vehicle Insurance must be filed within 6 months
2. Conviction of a crime out of acts increasing from the date of the accident.
the hazard insured against;
3. Fraud or material misrepresentation; Q: What is the period for the filing of actions in
4. Willful or reckless acts or omissions any policy of insurance?
Increasing the risk insured against; A: A condition, stipulation, or agreement in any
5. Physical changes in the property insured policy of insurance, limiting the time for commencing
making it uninsurable; and an action thereunder to a period of less than 1 year
6. Determination by the Insurance from the time when the cause of action accrues, is
Commissioner that the policy would violate void. (Insurance Code, Sec. 63)
the Insurance Code. (Sec. 64, Insurance
Code) Q: What is the period for the filing of actions
pursuant to Compulsory Motor Vehicle Liability
Q: Requisites for Cancellation by Insurer (Other insurance?
Than Life Insurance Contracts): (NAWG) A: Any person having any claim upon the policy
1. Prior Notice of cancellation to insured; issued pursuant to Compulsory Motor Vehicle
2. Notice must be based on the occurrence After Liability Insurance shall, without any unnecessary
effective date of the policy of one or more of the delay, present to the insurance company concerned
grounds mentioned; a written notice of claim setting forth the nature,
3. Notice must be in Writing, mailed or delivered to extent and duration of the injuries sustained certified
the insured at the address shown in the policy; by a duly licensed physician.
and ● Notice of claim must be filed within 6 months
4. Notice must state the Grounds relied upon and from the date of accident, otherwise, the claim
upon request of insured, to furnish facts on shall be deemed waived.
which cancellation is based. ● Action or suit for recovery of damage due to loss
or injury must be brought, in proper cases, with
Q: Are the requirements of notice and proof of the Commissioner or the courts within 1 year
loss mandatory? from denial of the claim, otherwise, the
A: Yes. The requirement of the notice of loss and claimant’s right of action shall prescribe.
obligation to file a proof of loss are conditions with (Insurance Code, Sec. 397)
which the insured MUST comply before there is any
liability on the part of the insurer. This shall be given Q: Payment of proceeds in Life Insurance.
without unnecessary delay or within a reasonable A: The proceeds shall be paid immediately upon the
time. maturity of the policy (survival benefits) if there is
such a maturity date. If the policy matures by the
Q: Form Required of Notice or Proof of Loss. death of the insured, within 60 days after
A: In case of loss upon fire insurance, the law presentation of the claim and filing of the proof of the
requires written notice. (Insurance Code, Sec. 90) death of the insured.
For other kinds of insurance, absent any stipulation
in the policy, notice or proof may be given orally or Q: Payment of proceeds in Property Insurance.
in writing.

A: Proceeds shall be paid within 30 days after proof

of loss is received by the insurer and ascertainment
of the loss or damage is made either by agreement
or by arbitration. If no ascertainment is made within
60 days after receipt of proof of loss, the loss shall
be paid within 90 days.
Q: Rules for Renewal of Non-Life Insurance.

A: The insured shall be entitled to renew the policy
upon payment of the premium due on the effective
date of the renewal. Policy written:
● Term of less than 1 year - considered as if
written for a term of 1 year
● Term longer than 1 year or any policy with
no fixed expiration date - considered as if
written for successive policy periods or terms of
1 year
Exception: The insurer at least 45 days in advance

of the end of the policy period mails or delivers to
the named insured at the address shown in the
policy notice of its intention not to renew the policy
or to condition its renewal upon reduction of limits or
elimination of coverages. (Insurance Code, Sec. 66)
—end of topic—

(c) Consignee: Party who receives the goods

II. TRANSPORTATION LAW
or cargo. The consignee and the shipper
may be the same.
TOPIC SUBTOPICS/LEGAL BASIS
Land Common Carriers - Civil Code
Q: What are the elements of a Common Carrier:
Sea Maritime Transportation - Code of A:
Commerce, COGSA (a) Persons, corporations, firms, or
Subtopics:
associations;
a. Maritime Contracts – Bills of
Lading and Charter Parties (b) Engaged in the business of carrying or
b. Persons in Maritime Law – transporting passengers or goods or both;
Shipowner, Ship agent, (c) By land, water, or air;
Captain, Sailing Mate, (d) For compensation; and
Supercargo (e) Offering their services to the public. (Civil
c. Limited Liability rule Code, Art. 1732)
d. Maritime Accidents – General
Average, Arrivals under Q: What is the test in determining a common
Stress, Collisions, Shipwreck carrier?
and Salvage A:
e. COGSA (a) It must be engaged in the business of
Air Montreal Convention carrying goods for others as a public
Registered Extent of Liability employment and must hold itself out as
Owner Rule
ready to engage in the transportation of
goods generally as a business and not as a
A. COMMON CARRIERS
casual occupation;
(b) It must undertake to carry goods of the kind
Q: What is a Contract of Transportation?
A: A contract of transportation is a consensual that to which its business is confined;
contract perfected by meeting of the minds. Natural (c) It must undertake to carry by the method by
or juridical persons bind themselves to transport which his business is conducted, and over
persons, goods, or both for compensation offering its established roads;
their services to the public. (d) The transportation must be for hire.
(First Philippine Industrial Corporation v. CA, 360
Phil. 852)
1. CONCEPT
Q: Who are the Parties to the Contract of 2. COMMON CARRIER vs. PRIVATE
Transportation? CARRIER
A: In the Carriage of Passengers,
(a) Carrier: Party who binds himself to Q: What is a private carrier?
transport persons, goods, or both. It may be A: Persons or entities who undertake to transport
a common carrier or a private carrier. goods or persons from one place or another by
(b) Passenger: One who travels in a public special agreement in a particular instance only,
conveyance by virtue of an express or without making the activity a vocation or without
implied contract with the common carrier, holding himself out to the public as ready to act for
paying fare or what is the equivalent thereof all who may desire his/her/its services, either
(Jesusa Vda. de Nueca v. Manila Railroad gratuitously or for hire. (Sps. Pereña v. Sps. Zarate,
693 Phil. 373)
Company, G.R. No. 31731-R, 1968)
Q: How is a common carrier different from a
A: In the Carriage of Goods,
private carrier?
(a) Shipper: Person who delivers the goods to
A: The distinction between a common carrier and
the carrier for transportation and pays the private carrier lies in the character of the business,
consideration, or on whose behalf the such that if the undertaking is a single transaction,
payment is made not a part of the general business or occupation,
(b) Carrier: Party who binds himself to although involving the carriage of goods for a fee,
transport persons, goods, or both. It may be the person or corporation offering such service is a
a common carrier or a private carrier.

private carrier. (Schmitz Transport v. Transport right to receive the goods under the bill of lading can
Venture, G.R. No. 150255, 2005) be considered as a constructive delivery. After all,
the issuance of a bill of lading is prima facie
Q: Is a Certificate of Public Convenience evidence of the receipt of the goods by the carrier
required to incur liability? (Saludo v. CA, G.R. No. 95536)
A: It is not a requisite to incur liability under the Civil
Code provisions governing common carriers. (De Q: When does the liability of common carriers
Guzman v. CA, 250 Phil. 613) arise in transportation of passenger
A: As to the commencement of the duty to exercise
extraordinary diligence, there are two views:
3. DILIGENCE REQUIRED
Liberal View v. Strict View
Q: What type of diligence is required of LIBERAL The liberal view is based only on
common carriers? VIEW perfection of contract (or meeting of
A: Common carriers are required to exercise the minds) between carrier and
extraordinary diligence both over the goods and passenger.
over the safety of the passengers they are STRICT The strict view is based on both
transporting, according to all the circumstances of VIEW perfection of contract (or meeting of
each case. (Civil Code, Art. 1733) the minds) between carrier and
passenger and actual physical
Q: What is the duty of common carriers in the contact of passenger with the
transportation of Goods vs Passengers? vehicle, ship or airplane.
GOODS PASSENGERS
To transport with To carry passengers safely NOTE: Do not confuse perfection of the contract of
greatest skill and as far as human care and carriage with the commencement of the duty to
utmost foresight foresight can provide, exercise extraordinary diligence. The contract of
Utmost vigilance of Using utmost diligence of a carriage may be perfected in January while the duty
very cautious very cautious person, to exercise extraordinary diligence may only start or
person, according With due regard for all the commence in March.
to all circumstances (Sulpicio v.
circumstances First Lepanto, G.R. No. For example: It is possible for a law student to enter
140349, 2005). into a perfected contract with the carrier (such as
buying a ticket online) in June before the Bar Exam
B. OBLIGATIONS AND LIABILITIES for a trip or voyage scheduled in December after the
Bar Exam. The duty to exercise extraordinary
Q: When does liability of common carriers arise diligence over the safety of the law student will
in transportation of goods? obviously not start or begin in June but only when
A: Lasts from the time the goods are unconditionally the law student actually boards the ship or airplane
placed in the possession of, and received by the in December (this is the strict view which is more
carrier for transportation until the same are logical and less absurd than the liberal view)
delivered, actually or constructively, by the carrier to
the consignee or to the person who has a right to 1. VIGILANCE OVER GOODS
receive them or to his duly authorized agent and a
reasonable time is given him to remove the goods. Q: When is negligence of common carriers
(Nedlloyd B.V. Rotterdam v Glow Laks, G.R. No. presumed?
156330, 2014)
A: Presumption of Negligence
General Rule: The common carrier is presumed to
Q: What is actual delivery?
have been at fault or to have acted negligently when
A: Actual delivery: Actual delivery is when
the goods transported are lost, destroyed or
possession has been turned over to the consignee
deteriorated, or when a passenger dies or is injured.
or to his duly authorized agent and a reasonable
This is not a conclusive but disputable presumption,
time is given to him to remove the goods (Westwind
and it may be overcome by contrary evidence of
Shipping Corporation v. UCPB General Insurance
defenses.
Co., Inc., 722 Phil. 38)
Q: What is constructive delivery? Q: What are the exceptions?

A: Constructive delivery: Delivery of the bill of (a) Flood, earthquake, storm, lightning or other
lading to the consignee or any person who has a natural disaster or calamity

(b) Act of the public enemy in war, whether carrier will be governed by considered
international or civil. the Civil Code provisions on “goods” and the
(c) Act or omission of the shipper or owner of hotelkeepers and passenger is
the goods innkeepers. Hand-carried considered the
(d) The character of the goods or defects in the baggage are considered shipper/consignee.
packing or in the containers items of necessary deposit.
Common carriers shall be
(e) Order or act of competent authority
treated as depositaries.
(Civil Code, Art. 1734)
In Custody of
Q: What are the requisites for the defenses Passenger Carrier
against the presumption of negligence? Applicable Rule
Civil Code, Arts. 1998, 2000- Civil Code, Arts.
DEFENSES CONDITIONS TO AVAIL 2003 1733-1753
Flood, storm, Proximate and only cause; Diligence by Common Carrier
earthquake,
Exercise of diligence to Diligence of a depositary Extraordinary
lightning, or other (ordinary diligence)
prevent or minimize loss; diligence
natural disaster or
calamity and
Q: What is the inspection duty of a carrier?
Act of the public
No delay A: General Rule:
enemy in war, Inquiry may be made as to the nature of passengers’
whether baggage, but beyond this, constitutional boundaries
international or are already in danger of being transgressed (Nocum
civil v. Laguna Tayabas, G.R. No. L-23733, October 31,
Act or omission of If owner or shipper is the 1969).
the shipper or proximate cause, exempting
owner of the Exception: While there is no law that authorizes
goods If there is contributory bus operators to open the luggage of their
negligence, mitigating passengers, RA 6235 (Acts Inimical to Civil
Aviation) gives airline companies authority to open
Immediate protest by carrier; and investigate packages and cargoes loaded on
else: estoppel board. Should the personnel of the airline fail to
discover explosives, it could only be due to their
The character of Exercise of due diligence to failure to exercise the utmost diligence of very
the goods or forestall or prevent loss cautious persons.
defects in the
Immediate protest by carrier; Q: What is a carrier’s liability when a passenger
packing or in the
otherwise, estoppel declares the contents of a package which
containers
results to injuries to other passengers?
The carrier is not liable. It exercised extraordinary
Order or act of Said public authority had the diligence. It is to be presumed that a passenger will
competent public power to issue the order not take with him anything dangerous to the life and
authority limbs of his co-passengers, not to speak of his own.
The order or act of the
Not to be considered lightly is the right to privacy to
competent public authority which each passenger is entitled. (Nocum v. Laguna
needs to be a legal or lawful Tayabas Bus Co., G.R. No. L-23733, 1969)
order or act. It cannot be
illegal nor unlawful. NOTE: The Supreme Court ruled in Fortune
(Ganzon v CA) Express v. CA (G.R. No. 119756, 1999) that: “Under
the circumstances, simple precautionary measures
Q: How is Hand-Carried Baggage and Checked- to protect the safety of passengers, such as frisking
In Baggage different? passengers and inspecting their baggages,
HAND-CARRIED CHECK-IN preferably with non-intrusive gadgets such as metal
Legal Nature of Baggage detectors, before allowing them on board could have
been employed without violating the passenger’s
For hand-carried baggage, The checked-in constitutional rights. In Gacal v. Philippine Air Lines,
the responsibility of the baggage is Inc., a common carrier can be liable for failing to

prevent a hijacking by frisking passengers and

inspecting their baggages.” It is presumed that a person driving a motor vehicle
has been negligent if at the time of the mishap, he
Q: What is the relationship between a consignee was violating a traffic regulation, unless there is
and an arrastre operator? proof to the contrary. (Sps. Estrada v. Philippine
The relationship between the consignee and the Rabbit, G.R. 203902, 2017)
arrastre operator is bailor-bailee or depositor-
depositary. An arrastre operator does not render Q: What defenses are available to common
any service of a maritime nature. (Unknown Owner carriers?
of MV China vs. Asian Terminals, G.R. No 195661, A: Defenses Available to Common Carrier
2015) (a) Fortuitous event
(b) Extraordinary diligence
Thus, an arrastre operator should adhere to the
same degree of diligence as that legally expected of (c) Passenger is the proximate cause of death
a warehouseman or a common carrier as set forth or injury
in Warehouse Receipts Act and Article 1733 of the (d) Employees could not have prevented by
Civil Code. As custodian of the shipment discharged ordinary diligence the willful act or
from the vessel, the arrastre operator must take negligence of other passengers or
good care of the same and turn it over to the party strangers (which caused the death)
entitled to its possession. (Marina Port Service, Inc. (e) If the contract of carriage is gratuitous and
v. American Home Assurance Corporation, G.R. there is no willful act or negligence on the
201822, 2015) part of the carrier, a stipulation limiting
liability is valid
2. SAFETY OF PASSENGERS
f. Liability for Acts of Others
Q: Who is a passenger?
Q: When is a common carrier liable for the acts
A: One who travels in a public conveyance by virtue
of an express or implied contract with the common of others?
carrier paying fare or what is equivalent thereof. A: Yes, for their employees. Common carriers are
(Jesusa Vda. De Nueca v. Manila Railroad liable even if the employees may have acted beyond
Company, G.R. No. 31731-R, 1968) the scope of their authority or in violation of the
orders of the common carrier.
Q: Who are not considered passengers?
A:
• One who has not yet boarded any part of a g. Liability for delays in the
vehicle regardless of whether or not he has a commencement of voyage
ticket; Q: Can a common carrier be held liable for the
• One who remains on a carrier for an delay in the commencement of voyage?
unreasonable length of time after he has been A: If the departure of a vessel is delayed, the
afforded every safe opportunity to alight; passengers have the right to:
• One who has boarded by fraud, stealth, or (a) Remain on board; and
deceit; (b) Be furnished with food for the account of
• One who attempts to board a moving vehicle, the vessel. (Code of Commerce, Art. 698)
although he has a ticket, unless he attempt be
with the knowledge and consent of the carrier; These rights will not be present if the delay is due to
• One who has boarded a wrong vehicle, has been an accidental cause or force majeure. (Code of
properly informed of such fact, and on alighting, Commerce, Art. 698)
is injured by the carrier; or
• One who rides any part of the vehicle which is If the delay exceeds ten days, the passengers are
unsuitable or dangerous or which he knows is entitled to:
not designed or intended for passengers (a) The return of the passage, should the
passengers request it; and
Q: When is negligence of common carriers (b) Demand indemnity for losses and
presumed? damages, if the delay is caused exclusively
A: Presumption of Negligence by the captain or agent. (Code of
If the passenger is injured or killed, there is a Commerce, Art. 698)
presumption of negligence against a carrier. (Civil
Code, Art. 1756)

h. Liability for defects in equipment

and facilities Q: What requisites must be present to exempt
Q: When is a common carrier liable for defects the carrier from liability?
in equipment and facilities? A: The requisites are:
A: The carrier will be liable for the accident if the a. The event must be independent of human will
cause of the accident is a mechanical defect of the b. The occurrence must render it impossible for
conveyance or the fault of the equipment which was the debtor to fulfill the obligation in a normal
easily discoverable if the vehicle had been manner
subjected to more thorough or rigid inspections. (La
c. The obligor must be free of participation in, or
Mallorca v. De Jesus, 123 Phil. 857)
aggravation of, the injury to the creditor, and
C. DEFENSES AVAILABLE TO A d. The event must have been impossible to
COMMON CARRIER foresee, or if it could be foreseen, must have
been impossible to avoid
1. PROOF OF NEGLIGENCE
4. CONTRIBUTORY NEGLIGENCE
Q: How can the presumption of negligence
be overcome? Q: What is contributory negligence?
A: To overcome this presumption, the common A: General Rule: If the shipper/owner
carrier must prove that he exercised contributed to the loss, destruction, or
extraordinary diligence in transporting the goods deterioration of the goods caused proximately by
and/or passengers. the common carrier, the carrier’s liability shall be
equitably reduced. (Civil Code, Art. 1741)
In order to prove the exercise of extraordinary
Exception: In collision cases (moving object strikes
diligence, the carrier must do more than merely
another moving object) and allision cases (moving
showing the possibility that some other party
object strikes a stationary object). In such cases, the
could be responsible for the damage. (Calvo v.
parties are liable for their own damage
UCPB General Insurance, Co., Inc., 429 Phil.
244) 5. DOCTRINE OF LAST CLEAR
CHANCE
2. DUE DILIGENCE IN the SELECTION
AND SUPERVISION OF Q: What is the doctrine of last clear chance?
EMPLOYEES A: That the person who has the last fair chance
to avoid the impending harm and fails to do so is
Q: When is this defense available? chargeable with the consequences, without
A: The defense of the exercise of all the diligence of
reference to the prior negligence of the other
a good father in the selection and supervision of
party. (Picart v. Smith, G.R. No. L-12219, 1918)
their employees is appropriate only in quasi-delict or
culpa aquiliana. Such defense is not available in The doctrine of last clear chance states that where
culpa contractual and therefore, a common carrier both parties are negligent but the negligent act of
cannot raise such defense in action brought by its one is appreciably later than that of the other, or
passengers based on contract where it is impossible to determine whose fault or
negligence caused the loss, the one who had the
3. FORTUITOUS EVENT last clear opportunity to avoid the loss but failed to
do so is chargeable with the loss. (Lapanday
Q: What are the conditions required to avail of Agricultural and Development Corporation v.
this defense? Angala, G.R. No. 153076, 2007)
A: The conditions are:
a. Natural disaster was the proximate and only NOTE: Last Clear Chance Doctrine does not apply
cause in maritime law. Neither does the concept of
b. Exercise of diligence to prevent or minimize contributory negligence. (Reason: Code of
loss before, during and after the occurrence Commerce provides for specific rules on allocation
of liabilities – see Art. 827)
of the natural disaster
c. No delay

Q: What requisites must be present to exempt one for the client and one for the attorney. In
the carrier from liability? transportation law, what is relevant is attorney’s fees
A: The requisites are: for the client and not for the attorney.
(a) The event must be independent of human will
(b) The occurrence must render it impossible for Maritime Transportation
I. Maritime Contracts (Bills of Lading and
the debtor to fulfill the obligation in a normal
Charter Parties)
manner
(c) The obligor must be free of participation in, or
Q: What is a bill of lading?
aggravation of, the injury to the creditor, and
A: A written acknowledgment of the receipt of the
(d) The event must have been impossible to
goods and an agreement to transport and deliver
foresee, or if it could be foreseen, must have them at a specified place to a person named or on
been impossible to avoid. his/her order. It is signed by the captain and shipper,
and furnished to the consignee (Saludo v. CA, G.R.
D. EXTENT OF LIABILITY No. 95536)
1. RECOVERABLE DAMAGES Q: What are its contents?

A:
Q: When can damages be awarded? (a) The name, registry, and tonnage of the
A: Damages can be awarded in cases of injuries vessel;
suffered by or deaths of passengers in accordance (b) The name of the captain and the captain’s
with the provisions of the Civil Code on Damages. domicile;
(Civil Code, Art. 1764) (c) The port of loading and unloading;
(d) The name of the shipper;
Q: What kinds of damages are available to (e) The name of the consignee, if the bill of
passengers? lading is issued to order;
A: The following are available defenses: (f) The quantity, quality, number of packages,
(a) Actual or Compensatory Damages and marks of the merchandise; and
(b) Moral Damages (g) The freight and the primage stipulated
(c) Exemplary Damages (Code of Commerce, Art. 706)
(d) Nominal Damages
Q: What is the “three-fold character” of a bill of
(e) Temperate Damages
lading?
(f) Liquidated Damages A:
1. It is receipt of the goods shipped;
Q: When can moral damages be awarded? The issuance of a bill of lading carries the
A: General Rule: Moral damages are not presumption that the goods were delivered to the
recoverable in actions for damages predicated on a carrier issuing the bill and is prima facie evidence of
breach of contract of carriage. the receipt of the goods by the carrier (Saludo v. CA,
G.R. No. 95536)
Exceptions: Moral Damages may be awarded in a
breach of contract caused by the common carrier 2. It is a contract between the parties; and
where: The acceptance of a paper containing the terms of
• There is death of a passenger (Civil Code, Art. a proposed contract generally constitutes an
1764) acceptance of the contract and all of its terms and
• In breach of contract of carriage, there must be conditions of which the acceptor has actual or
fraud, bad faith, or death (Sps. Estrada v. constructive notice. (Keng Hua Paper Products, Co.,
Philippine Rabbit Bus Lines, G.R. No. 203902, Inc. v. CA, 349 Phil. 925)
2017)
• The carrier was guilty of fraud or bad faith even 3. It is a symbolic representation of the goods,
if there is no death. Only injured passengers are i.e., it is a document of title
entitled to moral damages due to injuries In case In the charter of the entire vessel, the bill of lading
of death, only compulsory heirs are entitled to issued by the master to the charterer is in fact a
claim moral damages. (Sulpicio Lines, Inc. v. receipt and document of title, not a contract. (Home
Curso, G.R. No. 157009) Insurance v. American Steamship Agencies, Inc.,
131 Phil. 552)
NOTE: Attorney’s Fees are considered as actual
damages. There are two kinds of attorney’s fees –

Q: What is the obligation of common carriers in Within 24 hours following the receipt of
the delivery of goods? the merchandise
A: Common carriers are obliged to deliver the goods SUIT The CLAIM is a condition precedent to
in the same condition which they were at the time of the filing of a SUIT.
their receipt, without any detriment or impairment.
(Code of Commerce, Art. 363) The consignee shall file a SUIT within 1
year from either:
Q: When is this obligation not applicable? Delivery of the goods; or
A: If the goods suffered damage or impairment: Denial of the claim
4. Due to accidents;
5. Due to force majeure; or Q: What is a charter party?
6. By virtue of the nature or defect of the A: Charter Party
goods (Code of Commerce, Art. 363 & It is a contract by virtue of which the owner or the
Code of Commerce, Art. 361) agent of a vessel binds himself to transport
merchandise or persons at a fixed price. (San
Q: What is the required period of delivery? Miguel Corporation v. Heirs of Inguito, 433 Phil. 428)
A: The period of delivery will depend on what is
Q: What are the general categories or kinds of
provided on the bill of lading.
charter party?
NO FIXED First shipment of the same or DEMISE / CONTRACT OF
PERIOD similar goods which the carrier may BAREBOAT AFFREIGHTMENT
make to the point of delivery. (Code The charterer mans The owner of a vessel
of Commerce, Art. 358) the vessel with its own leases the whole or
STIPULA Within the period provided in the bill people, and is part of its space to haul
TED of lading. (Code of Commerce, Art. considered the owner goods for another.
pro hac vice (for this
PERIOD 370) occasion only).
Owner retains
Q: What is the period for filing claims? Owner completely and possession, command,
A: The period of filing of claims will depend on exclusively and navigation of the
whether the damage or average can be determined relinquishing ship.
from the exterior of the packaging: possession,
CAN BE Claims should be filed upon command, and It includes time
ASCERTAINED the receipt of the package; navigation to the charters and voyage
charterer. charters
CANNOT BE Claims should be filed within Charterer is liable for Shipowner is liable for
ASCERTAINED twenty-four (24) hours damages damages
following the receipt of the Carrier is converted to Carrier remains as
goods. private carrier – common carrier –
ordinary diligence extraordinary diligence
Q: What is the period for filing actions?
A: Actions relating to the delivery of cargo or to the Q: What is a bareboat/demise charter?
indemnity for delays and damages suffered by the A: Under a Bareboat/Demise Charter, the charterer
goods transported prescribe after one (1) year. mans the vessel with his own people and becomes,
in effect, the owner of the ship for the voyage or
The prescriptive period will be counted from: service stipulated, subject to the liability for
(a) The day of delivery of the cargo at the place of damages caused by negligence. (San Miguel
its destination; or Corporation v. Heirs of Inguito, 433 Phil. 428)
(b) From the day on which it should be delivered
according to the conditions of its transportation. Q: How is a common carrier converted to a
(Code of Commerce, Art. 952) private carrier?
A: A charter party may transform a common carrier
Q: What is the difference between a claim and a into a private carrier. However, it must be a bareboat
suit? or demise charter where the charterer mans the
vessel with his own people and becomes, in effect,
CLAIM File a CLAIM against the carrier:
the owner for the voyage or service stipulated
Upon receipt of the goods; or
(Caltex v. Sulpicio Lines, G.R. No. 131166, 1999)

Q: What is a time charter? A: The ship owner and ship agent shall NOT be
A: The leased vessel is leased to the charterer for a liable for obligations contracted by the captain which
fixed period of time. (San Miguel Corporation v. exceeds the powers and privileges granted to the
Heirs of Inguito, 433 Phil. 428) latter. However, the owner and agent will be again
liable if the amounts claimed were used for the
Q: What is a voyage/trip charter? benefit of the vessel. (Code of Commerce, Art. 588)
A: The ship is leased for a single voyage. (San
Miguel Corporation v. Heirs of Inguito, 433 Phil. 428) III. Limited Liability rule
Q: What is the limited liability rule?
A: General Rule: The liability of the ship owner is
II. Persons in Maritime Law (Shipowner, Ship limited to the value of the vessel, its equipment, and
agent, Captain, Sailing Mate, Supercargo) freight. The rule is “no vessel, no liability.” (Code of
Commerce, Art. 837)
Q: Who are the persons participating in
maritime commerce? Exceptions:
A: (a) The injury or death is due either to the fault of
(a) Ship owner and/or ship agent – the ship agent is the shipowner or to the concurring negligence
the person entrusted with the provisioning of a of the shipowner and captain
vessel or who represents her in the port in which (b) The vessel is insured
she may be found (c) Workmen’s Compensation Cases (Chua Yek
(b) Captain or Master — the person in charge of the Hong v. Intermediate Appellate Court, 248 Phil.
vessel and navigates it. The captain also acts as 422)
the general agent of the ship owner. (d) Expenses for repairs on the vessel before its
(c) Other officers of the vessel (i.e. sailing mate, loss (Luzon Stevedoring v CA, G.R. No. L-
second mate, third mate, marine engineer) 58897, 1987)
(d) Supercargo — the person specially employed by
the owner of cargo to take charge of and sell to Q: Who Can Exercise the Right of
the best advantage merchandise which has Abandonment?
been shipped, and to purchase returning A: General Rule: Only the ship owner and the ship
cargoes and to receive freight agent can make an abandonment.
Exception: In cases of co-ownership of a vessel, a

Q: What are the basic functions of a captain?
co-owner may exempt himself from liability by the
A: A master or captain, for purposes of maritime
abandonment of the part of the vessel belonging to
commerce, is one who has command of a vessel. A
him.
captain commonly performs three (3) distinct roles:
(a) he is a general agent of the shipowner;
Q: When can abandonment be availed to avoid
(b) he is also commander and technical director of liability?
the vessel; and A:
(c) he is a representative of the country under (a) For civil liability to third persons arising from the
whose flag he navigates conduct of the captain in the vigilance over the
(Inter-Orient Maritime Enterprises, Inc. vs NLRC, goods which the vessel carried;
G.R. No. 115286, 1994). (b) For the proportionate contribution of co-owners
of the vessel to a common fund for the results
Q: When is the ship owner and ship agent shall
of the acts of the captain referred to in Art. 587
civilly liable?
of the Code of Commerce; and
A:
(a) Acts of the captain; and (c) For the civil liability incurred by the ship owner
(b) The obligations contracted by the captain to in case of collision.
repair, equip, and provision the vessel,
provided the creditor proves that the amount IV. Maritime Accidents – General Average,
claimed was invested therein. (Code of Arrivals under Stress, Collisions, Shipwreck and
Commerce, Art. 586) Salvage
Q: When is the ship owner and ship agent NOT Q: What are Averages?
civilly liable? A: The Code of Commerce in Art. 806 states:

1. All extraordinary or accidental expenses which from the accidents of the sea, dispositions of the
may be incurred during the navigation for the authority, or faults of men, provided that the
preservation of the vessel or cargo, or both; or circumstances producing the peril should be
2. All damage or deterioration the vessel may ascertained and imminent or may rationally be
suffer from the time she puts to sea from the said to be certain and imminent. This last
port of departure until she casts anchor in the
requirement exclude measures undertaken
port of destination, and those suffered by the
merchandise from the time it is loaded in the against a distant peril.
port of shipment until it is unloaded in the port (b) Second, that for the common safety part of the
of consignment. (Code of Commerce, Art. 806) vessel or of the cargo or both is sacrificed
deliberately.
Q: What are the kinds of averages? (c) Third, that from the expenses or damages
A: Simple or Particular AND General or Gross caused follows the successful saving of the
vessel and cargo.
Q: What is a simple or particular average? (d) Fourth, that the expenses or damages should
A: The expenses and damages caused to the have been incurred or inflicted after taking
vessel or to her cargo which have not redounded to proper legal steps and authority.
the benefit of all persons interested in the vessel and
(A. Magsaysay, Inc. v Anastacio Agan, G.R. No. L-
her cargo. (Code of Commerce, Art. 809)
6393, 1955)
Q: Who bears this type of average?
Arrivals Under Stress
A: This shall be borne by the owner of the goods
Q: When is there arrival under stress
which gave rise to the expense or suffered the
A: If the captain during the navigation should believe
damage. (Code of Commerce, Art. 810)
that the vessel cannot continue the voyage to the
port of destination on account of
Q: What is a general or gross average?
(a) the lack of provisions
A: The expenses and damages which are
deliberately caused in order to save the vessel, her (b) well-founded fear of seizure, privateers or pirates
cargo, or both at the same time, from a real known (c) by reason of any accident of the sea disabling
risk. (Code of Commerce, Art. 811) her to navigate
Q: Who bears this type of average? Q: When is arrival under stress not legal?
A: This shall be borne by all persons having an (a) Lack of provisions should arise from the failure
interest in the vessel and cargo at the time of the to take the necessary provisions for the voyage,
occurrence of the average. (Code of Commerce, according to usage and custom, or if they should
Art. 812) have been rendered useless or lost through bad
stowage or negligence in their care.
(b) If the risk of enemies, privateers, or pirates
Q: How are the expenses and cause of damages
should not have been well known, manifest, and
as general/gross average incurred?
(a) A resolution of the captain, adopted after based on positive and justifiable facts.
deliberation with the sailing mate and other (c) If the injury to the vessel should have been
officers of the vessel; and caused by reason of her not being repaired,
(b) A hearing with the persons interested in the rigged, equipped, and arranged in a convenient
cargo who may be present. (Code of manner for the voyage, or by reason of some
Commerce, Art. 813) erroneous order of the captain.
(d) Whenever malice, negligence, want of foresight,
Q: What are the four requisites of general or lack of skill on the part of the captain is the
average? reason for the act causing the damage. (Code of
A: Tolentino, in his commentaries on the Code of Commerce, Art. 820)
Commerce, gives the following requisites for
general average: Q: What are the rule on expenses?
(a) First, there must be a common danger. This A: General Rule: For the account of shipowner or
means, that both the ship and the cargo, after agent
has been loaded, are subject to the same
danger, whether during the voyage, or in the port Exception: Damage caused by reason of arrival
under stress, provided the latter is legitimate
of loading or unloading; that the danger arises

Exception to Exception: Otherwise, the shipowner shall be liable for their own damage. (Code of
or agent and captain shall be jointly liable Commerce, Art. 830)
(Code of Commerce, Art. 821) (e) If a vessel is forced to collide with another by a
third vessel, the owner of the third vessel shall
Collisions and allisions indemnify all losses and damages caused. The
Q: What is a collision?
captain of the third vessel will then be liable to
A: The impact of two or more vessels, both of
the owner of the third vessel. (Code of
which are moving.
Commerce, Article 832)
Q: What is an allision? (f) If a storm or force majeure forces a properly
A: The impact between a moving vessel against a anchored and moored vessel to collide with other
stationary object. vessels in her immediate vicinity, the damages
caused shall be considered as a
Q: What are the zones of collision? simple/particular average. (Code of Commerce,
(a) First Zone – All the time up to the moment Art. 832)
the risk of collision begins;
(b) Second Zone – All the time from the Shipwreck
moment the risk of collision begins up to the Q: What is a Shipwreck?
moment the collision becomes a practical A: It covers all types of loss/wreck of a vessel at sea
certainty; and either by being swallowed up by the waves or by
(c) Third Zone – All the time when the collision running against another vessel or thing at sea or at
the coast and the vessel is rendered incapable of
is certain up to the point of impact. (A.
navigation.
Urrutia Co v. Baco River Plantation Co., 26
Phil. 632) Q: Who are liable in shipwrecks?
A: General Rule: The losses and deteriorations
Q: What is the doctrine of error in extremis? suffered by a vessel and her cargo by reason of
A: A sudden movement by a faultless vessel during shipwreck or stranding shall be individually for the
the third zone of collision with another vessel which account of the owners, the part of the wreck which
is at fault during the second zone of collision will not may be saved belonging to them in the same
make the faultless vessel responsible for any fault proportion. (Code of Commerce, Art. 840)
due to the sudden movement. (A. Urrutia Co v. Baco
River Plantation Co., 26 Phil. 632) Exception: If the wreck or stranding should arise
through the malice, negligence, or lack of skill of the
Q: What are the rules governing collisions? captain, or because the vessel put to sea
(a) If a vessel collides with another through the fault, insufficiently repaired and prepared, the owner or
negligence, or lack of skill of the captain, sailing the freighters may demand indemnity of the captain
mate, or any other member of the crew, the for the damages caused to the vessel or cargo by
owner of the vessel at fault shall be liable for the the accident. (Code of Commerce, Art. 841)
suffered losses and damages after appraisal
(Code of Commerce, Art. 826) Salvage
Q: What are the elements of a valid salvage?
(b) If both colliding vessels are at fault, each vessel
(a) A marine peril
shall be liable for its own damages. Moreover,
(b) Service voluntarily rendered when not
both vessels shall be solidarily liable to the
required as an existing duty or from special
damages suffered by their cargoes. (Code of
contract
Commerce, Art. 827)
(c) Success, in whole or in part, or that the
(c) If it cannot be determined which of the two
services rendered contributed to such
vessels are at fault, it will be considered as if both
success (Barrios vs. Go Thong, G.R. No. L-
vessels are at fault. Therefore, both vessels shall
17192, 1963)
be liable for their own damages but solidarily
liable for the damages suffered by their cargoes. Q: What is a contract of towage?
This is also called as the Doctrine of Inscrutable A: A contract to render service whereby a vessel
Fault. (Code of Commerce, Art. 828) pulls or tows another from one place to another for
(d) If a vessel is forced to collide with another by compensation. It is not a contract of carriage or
reason of accident or force majeure, each vessel transportation. Only the owner of the towing vessel
can ask for compensation.

(a) Collision;
Q: What is the difference between salvage and (b) Arrival under stress
towage? (c) Shipwreck; and
SALVAGE TOWAGE (d) In case the vessel has gone through a
Crew of salvaging ship Crew of the towing ship hurricane or when the captain believes that the
is entitled to salvage, does not have any
cargo has suffered damages.
and can look to the interest or rights with
salvaged vessel for its the remuneration
Maritime Protest shall also be done if the vessel
share pursuant to the
having been wrecked, the captain is saved alone or
contract. Only the
with part of the crew, in which case, the captain shall
owner of the tugboat
appear before the nearest authority and make a
will receive
sworn statement of the facts.
compensation in
towage.
Q: What is a salvage?
Salvor takes Tower has no
A: It is the compensation allowed to persons by
possession and may possessory lien; only
whose voluntary assistance a ship at sea or her
retain possession until an action for recovery
cargo or both have been saved in whole or in part
he is paid of sum of money.
from an impending peril, or such property recovered
Court has power to Court has no power to
from actual peril or loss. In case of shipwreck,
reduce the amount of change amount in derelict, or recapture; a service which one person
remuneration if towage even if renders to the owner of a ship or goods by his own
unconscionable unconscionable labor, preserving the goods or ship which the owner
or those entrusted with the care of them either
Maritime Protest abandoned in distress at sea or are unable to
Q: What is a maritime protest? protect and secure.
A: It is a written statement under oath, made by the
master of a vessel, after the occurrence of an Q: What is a derelict?
accident or disaster in which the vessel or cargo is A: It is a ship or cargo which is abandoned and
lost or injured, with respect to the circumstances deserted at sea by those who are in charge of it,
attending such occurrence. without any hope of recovering it, or without any
intention of returning to it.
It is intended to show that the loss or damage
resulted from a peril of the sea, or some other cause V. COGSA (Carriage of Goods by Sea Act)
for which neither master nor owner was responsible,
Q: When is COGSA applicable?
and concludes with a protest against any liability of
A: The COGSA is the applicable law for all contracts
the owner for such loss or damage.
of carriage by sea to and from the Philippines in
foreign trade. (COGSA, Sec. 1 & Cua v. Wallem
It is a condition precedent or prerequisite to recovery
Philippines Shipping, Inc., 690 Phil. 491)
of damages arising from collisions and other
maritime accidents (Code of Commerce, Art. 835)
Q: Is it applicable to domestic trade?
A: Yes, provided there is a Paramount Clause in the
Q: Who makes a maritime protest?
contract.
A: Captain
Q: What is a paramount clause?
Q: When is a maritime protest made?
A: A stipulation or clause either on the bill of lading
A: Within 24 hours from the time the collision took
or charter party stipulating the laws that the parties
place (Code of Commerce, Art. 835); Upon arrival at
agreed to be used for that particular transport.
the place of destination, the captain shall ratify the
protest within 24 hours.
Q: What is the responsibility of the Carrier
under the COGSA?
Q: Before whom is a maritime protest made?
A: The responsibility of the carrier begins when the
1. Competent authority at the point of collision
goods are brought to the carrier and crosses one
or at the first port of arrival, if collision took side of the vessel (portside). It ceases only when the
place in the Philippines goods cross the other side (starboard side). This is
2. Philippine consul, if the collision took place also known as the “tackle to tackle” rule.
abroad (Code of Commerce, Art. 835)
Q: What are the requisites for a contract to be
Q: When is a maritime protest required? covered by COGSA?

(a) Contracts for the carriage of goods commerce, or disappeared in much a way that their
(b) By sea existence is unknown, or they cannot be recovered.
(c) To and from Philippine ports
(d) In foreign trade Q: When is there NOT a loss?
• There was indeed delivery — but delivery to the
Q: What is the shipper’s guaranty? wrong person, or a misdelivery (Ang. V.
A: Shipper’s Guaranty upon Delivery of the American Steamship, G.R. No. L-22491, 1967)
Goods to Carrier for Shipment • Damage arising from delay or late delivery
The shipper guarantees at the time of shipment the (Mitsui O.S.K. Lines v. CA, G.R. No. 119571,
accuracy of the marks, number, quantity, and weight 1998).
of the goods. The shipper shall indemnify the carrier In such instances, the Civil Code rules on
against all losses, damages and expenses arising prescription shall apply.
from errors or inaccuracies.
Q: What is the period of prescription?
Q: Before and at the beginning of the voyage, A: Actions must be brought within one (1) year after:
what is the carrier is bound to exercise due (a) Delivery of the goods; or
diligence to? (b) The date when the goods should have been
(a) Make the ship seaworthy delivered. (COGSA, Sec. 3[6])
(b) Properly man, equip, and supply the ship
(c) Make the holds, refrigerating and cooling Q: What is effect of failing to file within the
chambers, and all other parts of the ship in prescriptive period?
which goods are carried, fit and safe for A: It will discharge the common carrier and the
reception, carriage, and preservation. vessel from liability. (COGSA, Sec. 3[6])
However, the shipper shall not lose the right to

Q: What is required in a notice of loss or
initiate an action against the carrier or the vessel if
damage? no notice of loss or damage is given. (COGSA, Sec.
A: When there is loss or damage of the goods, there 3[6])
must be a written notice that provides:
(a) The general nature of such loss or damage Q: When is the one-Year period in COGSA
(b) Given to the carrier or his agent interrupted?
(c) At the port of discharge or at the time of the (a) When an action is filed in court; (Universal
removal of the goods. Shipping Lines v. IAC, G.R. No. 74125,
1990); and
Q: When must the notice be given? (b) When there is a contrary agreement
A: If the loss or damage is not apparent, the notice between the parties. (Stevens v.
must be given within 3 days from delivery. The Norddeuscher, G.R. No. L-17730, 1962)
notice of loss or damage may be endorsed upon the
receipt for the goods given by the person taking
delivery thereof. 2. STIPULATIONS LIMITING LIABILITY
Q: When is the notice not required? In Transportation Of Goods

A: The notice or writing need not be given if the state Q: What are valid stipulations limiting liability
of the goods at the time of their receipt has been the for transportation of goods?
subject of Joint Survey Inspection. (COGSA, Sec. (a) Degree less than extraordinary diligence
3(6)) (b) Limitation of liability to a fixed amount
Q: Is the filing of a notice of a claim required Q: What are the requisites of a valid limitation
before filing a suit? of degree less than extraordinary diligence?
A: No. Under COGSA, the filing of a notice of claim A: Valid if it is:
is NOT a condition precedent to filing a suit (UCPB 1. In writing, signed by the shipper or owner;
v. Aboitiz Shipping G.R. No. 168433, 2009) 2. Supported by a valuable consideration other
than the service rendered by the carrier; and
Q: When is there a loss? 3. Reasonable, just, and not contrary to public
A: It contemplates merely a situation where no policy (Civil Code, Art. 1744)
delivery at all was made by the shipper of the goods
because the same had perished, gone out of

Q: What are other stipulations limiting liability (b) Fairly and freely agreed upon. (Civil Code,
of common carrier? Art. 1750)
A: A stipulation limiting the common carrier’s
liability: Q: What is the limitation of liability in absence
(a) May be annulled by the shipper/owner if the of declaration of greater value?
carrier refused to carry the goods, unless A: General Rule: A stipulation limiting the carrier’s
the shipper/owner agreed to such liability to the value of the goods appearing in the bill
stipulation (Civil Code, Art. 1746) of lading is valid.
(b) Cannot be availed of if the common carrier,
without just cause, delays the transportation Exception: A passenger who declares a greater or
of the goods, or changes the stipulated or higher value must also pay additional freight. (Civil
usual route in cases of loss, destruction, or Code, Art. 1749)
deterioration of the goods. (Civil Code, Art.
Q: What is the rule if there are multi-carriers?
1747) A: When there are several carriers who
(c) For delay on account of strikes or riots is successively transport goods, or there is a single
valid. (Civil Code, Art. 1748) “through bill of lading” issued by one carrier and
(d) To the value of the goods appearing in the honored by other carriers, the following are the
bill of lading is valid, unless the rules:
shipper/owner declares a greater value. (a) Last carrier assumes the obligation of the
(Civil Code, Art. 1749) previous carriers. But last carrier, if not
directly responsible, may proceed against
Q: What factors should be considered when previous carriers.
refusing stipulations limiting liability? (b) Shipper/consignee has cause of action
(a) Refusal to carry goods, UNLESS against carrier who executed the contract or
stipulation limiting liability is signed by other carriers who received goods without
shipper (Civil Code, Art. 1746) reservation.
(b) Delay or deviation, without just cause (Civil (c) Carriers who made a reservation may still
Code, Art. 1747) be liable for their own acts.
(c) Lack or presence of competition (Civil
Code, Art. 1751) NOTE: Carriers with reservations are NOT relieved
of responsibilities for their own acts
Q: When is a stipulation in a contract of
transportation of goods limiting liability void? Q: What are the prohibited stipulations in a
(a) Unreasonable contract of carriage?
(b) Unjust (a) That the goods are transported at the risk of
(c) Contrary to public policy the Owner or shipper;
(b) That the common carrier will not be Liable
Q: What is the liability in the absence of a for any loss, destruction, or deterioration of
rejection clause in a contract of carriage of the goods;
goods? (c) That the common carrier need not observe
A: In the absence of a “rejection clause” in a contract any Diligence in the custody of the goods;
of carriage of goods, Articles 361, 362, 364, 365 of (d) That the common carrier shall exercise a
the Code of Commerce become applicable. The
degree of diligence less than that of a good
aforementioned provisions, in summary, state that if
the goods are delivered but arrived at the Father of a family, or of a man of ordinary
destination in damaged condition, the remedies to prudence in the vigilance over the movables
be pursued by the consignee depend on the extent transported;
of damage on the goods. (Loadstar Shipping (e) That the common carrier shall not be
Company, Incorporated v. Malayan Insurance responsible for the acts or omission of his or
Company, Incorporated, G.R. No. 185565, 2014) its Employees;
(f) That the common carrier's liability for acts
Q: What are the requisites of a valid limitation committed by Thieves, or of robbers who do
of liability to a fixed amount? not act with grave or irresistible threat,
A: It must be: violence or force, is dispensed with or
(a) Reasonable and just under the
diminished;
circumstances; and

(g) That the common carrier is not responsible either within the territories of another State
for the loss, destruction, or deterioration of of two States Parties, or (Article 1 par 2)
goods on account of the defective condition within the territory of a
of the car, vehicle, ship, airplane, or other single State Party if there is
equipment used in the contract of carriage. an agreed stopping place
within the territory of
another State, even if that
State is not a State Party.
In Transportation Of Passengers
Q: What are void stipulations?
A: General Rule: The responsibility of a common
carrier cannot be dispensed with or lessened by Q: What actions are available to a passenger
stipulation, by posting of notices, or by statements against carrier in transportation of: (Article 36)
on tickets. A reduced fare cannot justify limited GOODS PASSENGER
liability. 1. Passenger or General Rule:
consignor will have The passenger or any
Exception: If the carriage is gratuitous or for free, a a right of action person entitled to
stipulation limiting liability is valid. against the first compensation in
carrier respect of him or her
Exception to the Exception: The stipulation does 2. The passenger or can take action only
not cover willful acts or gross negligence of the consignee who is against the carrier
carrier. (Civil Code, Arts. 1757-1759) entitled to delivery which performed the
will have a right of carriage during which
Reason: Waiver of future fraud or gross negligence action against the the accident or the
is invalid (Civil Code, Art. 1172) last carrier delay occurred
3. Further, each may Exception:
NOTE: Moral damages may be recovered in an take action against By express agreement,
action for breach of contract of transportation when the carrier which the first carrier has
death results. Even if the passenger does not die, performed the assumed liability for
the passenger can recover moral damages if the carriage during the whole journey.
carrier is guilty of fraud or bad faith. However, only which the
the passenger is entitled to moral damages not destruction, loss,
anyone else. damage or delay
took place.
3. LIMITATIONS UNDER MONTREAL These carriers will be
jointly and severally
CONVENTION liable to the passenger
or to the consignor or
Convention for the Unification of Certain Rules for consignee.
International Carriage by Air - Montreal, 28 May
1999 Q: Is an air waybill or cargo receipt a prima facie
evidence?
Q: When is the Montreal Convention applicable? A: The air waybill or the cargo receipt is prima facie
A: It applies to all international carriage of persons, evidence of the conclusion of the contract, of the
baggage or cargo performed by aircraft for reward. acceptance of the cargo and of the conditions of
It applies equally to gratuitous carriage by aircraft carriage mentioned therein. (Article 11, par 1)
performed by an air transport undertaking. (Article 1
par. 1)
Damage to Baggage (Article 17)
Q: What is an international carriage?
A: International Carriage (Article 1 par 2) Q: What is a baggage?
COVERED NOT COVERED A: Baggage means both checked baggage and
Any carriage in which, Carriage between unchecked baggage. (Article 17, par 4)
according to the agreement two points within
between the parties, the the territory of a Q: What are the liabilities of a carrier?
place of departure and the single State Party (a) Liable for damage sustained in case of death
place of destination, without an agreed or bodily injury of a passenger upon
whether or not there be a stopping place condition only that the accident which
break in the carriage or a within the territory
caused the death or injury took place on
transshipment, are situated
board the aircraft or in the course of any of

the operations of embarking or Exception: If it proves that it and its servants and
disembarking. agents took all measures that could reasonably be
(b) Liable for damage sustained in case of required to avoid the damage or that it was
destruction or loss of, or of damage to, impossible for it or them to take such measures.
checked baggage upon condition only that
Q: What are the defenses available to carrier?
the event which caused the destruction, loss
A: (Article 20)
or damage took place on board the aircraft If the carrier proves the following, the carrier shall be
or during any period within which the wholly or partly exonerated from its liability to the
checked baggage was in the charge of the extent of damage contributed:
carrier. However, the carrier is not liable if (a) If the carrier proves that the damage was
and to the extent that the damage resulted caused or contributed to by the negligence
from the inherent defect, quality, or vice of or other wrongful act or omission of the
the baggage. person claiming compensation, or the
(c) In the case of unchecked baggage, including person from whom he or she derives his or
personal items, the carrier is liable if the her rights
damage resulted from its fault or that of its (b) When by reason of death or injury of a
servants or agents. passenger compensation is claimed by a
(d) If the carrier admits the loss of the checked person other than the passenger
baggage, or if the checked baggage has not
arrived at the expiration of twenty-one days Q: What is the amount of compensation
after the date on which it ought to have available to passengers?
arrived, the passenger is entitled to enforce A: (Article 21)
against the carrier the rights which flow from (a) Damages not exceeding 100 000 Special
the contract of carriage. Drawing Rights - the carrier shall not be able
to exclude or limit its liability.
7. Damages exceeding 100 000 Special
Q: What are the liabilities of a common carrier Drawing Rights – the carrier is liable unless
for damage to cargo? the carrier proves that:
A: (Article 18) a. such damage was not due to the
General Rule: The carrier is liable for damage negligence or other wrongful act or
sustained in the event of the destruction or loss of, omission of the carrier or its servants or
or damage to, cargo upon condition only that the agents; or
event which caused the damage so sustained took b. such damage was solely due to the
place during the carriage by air. negligence or other wrongful act or
omission of a third party.
Exception: Not liable if and to the extent it proves
that the destruction, or loss of, or damage to, the Q: What limitations of liability are available to
cargo resulted from one or more of the following: the common carrier?
(a) inherent defect, quality or vice of that A: (Article 22)
cargo; (a) Damage caused by delay
(b) defective packing of that cargo performed
by a person other than the carrier or its Liability of the carrier for each passenger is limited
servants or agents; to four (4) 150 Special Drawing Rights
(c) an act of war or an armed conflict;
(d) an act of public authority carried out in (b) In the carriage of baggage, in case of
connection with the entry, exit or transit of destruction, loss, damage or delay
the cargo.
General Rule: Liability is limited to limited to 1000
Q: What are the liabilities of a common carrier Special Drawing Rights for each passenger
for delay of cargo?
A: (Article 19) Exception: The passenger has made, at the time
General Rule: The carrier is liable for damage when the checked baggage was handed over to the
occasioned by delay in the carriage by air of carrier, a special declaration of interest in delivery at
passengers, baggage, or cargo. destination and has paid a supplementary sum if the
case so requires. In that case the carrier will be

liable to pay a sum not exceeding the declared sum, the document of carriage or with
unless it proves that the sum is greater than the the record preserved
passenger’s actual interest in delivery at destination.
DAMAGE Complain to the carrier forthwith
(c) In the carriage of cargo, the liability of the after the discovery of the damage
carrier in the case of destruction, loss,
damage or delay At the latest, within seven days
from the date of receipt in the
General Rule: Limited to a sum of 17 Special case of checked baggage and
Drawing Rights per kilogram fourteen days from the date of
receipt in the case of cargo
Exception: The consignor has made, at the time DELAY Complaint must be made at the
when the package was handed over to the carrier, a latest within twenty-one days
special declaration of interest in delivery at from the date on which the
destination and has paid a supplementary sum if the baggage or cargo have been
case so requires. placed at his or her disposal.
In that case the carrier will be liable to pay a sum not Q: What is the effect of non-compliance to the
exceeding the declared sum, unless it proves that prescriptive period?
the sum is greater than the consignor’s actual A: General Rule: If no complaint is made within the
interest in delivery at destination. times aforesaid, no action shall lie against the carrier
Q: What must be proven to be exempted from Exception: Fraud

liability resulting from delay or damage in the
carriage of baggage? Q: When is the right to damages extinguished?
A: Damage resulted from an act or omission of the A: If an action is not brought within a period of two
carrier, its servants, or agents, done with intent to years, reckoned from:
cause damage or recklessly and with knowledge (a) the date of arrival at the destination, or
that damage would probably result; provided that, in (b) from the date on which the aircraft ought to
the case of such act or omission of a servant or have arrived, or
agent, it is also proved that such servant or agent (c) from the date on which the carriage
was acting within the scope of its employment. stopped.
Q: What is a valid stipulation regarding Q: What is the method of calculating the period?
limitation of liability? A: Determined by the law of the court seized of the
A: (Article 25) A carrier may stipulate that the case. Lex Fori (or the law of the forum).
contract of carriage shall be subject to higher limits
of liability than those provided for in this Convention ADDITIONAL TOPIC/S
or to no limits of liability whatsoever.
Q: What is the Registered Owner Rule for
Q: What is a void stipulation regarding limitation Common Carriers?
of liability? A: General rule: The registered owner is liable
A: (Article 26) directly and primarily to the general public or to third
Any provision tending to relieve the carrier of liability persons and not the actual owner or driver of the
or to fix a lower limit than that which is laid down in vehicle.
this Convention shall be null and void. Reason: For easy identification.
NOTE: It does not result to the nullity of the whole Recourse: The registered owner may seek
contract reimbursement from the actual owner or driver of the
vehicle (the real party at fault) by filing a cross-claim
Q: What is the prescriptive period for filing of or third-party complaint in the same case. (BA
complaints? Finance v. CA, G.R. No. 98275, 1992)
A: Every complaint must be made in writing and
given or dispatched within the times aforesaid. Exception: In case of a stolen vehicle, the
(Article 31) registered owner may not be held liable. The
RECEIPT Prima facie evidence that the Supreme Court has ruled that to rule otherwise
WITHOUT same has been delivered in good would be absurd (Duavit v CA, G.R. No. 82318,
COMPLAINT condition and in accordance with 1989)

Q: Is a registered owner absolved from liability

if the vehicle is leased?
A: The registered owner rule applies even if the
registered owner leased the vehicle to another who
is the actual operator.
Defense: The lessor-owner should register the

lease contract with the LTO in order for the lessor-
owner to be free from liability (PCI Leasing and
Finance v. UCPB General Insurance, G.R. No.
162267, 2008)
Q: What is the “kabit system”?

A: Kabit system is an arrangement whereby a
person who has been granted a certificate of public
convenience allows other persons who own motor
vehicles to operate under his license sometimes for
a fee or percentage of the earnings. This is contrary
to public policy and therefore void and inexistent
under Art. 1409 of the Civil Code. This arrangement
is a circumvention of the requirement for license.
Q: How is liability apportioned?

While the Court ruled in previous cases that the
registered owner or operator of a passenger vehicle
is jointly and severally liable with the driver of the
said vehicle for damages incurred by passengers or
third persons as a consequence of injuries or death
sustained in the operation of the said vehicle, in no
case is the actual owner of the passenger vehicle
exempted from liability. In fact, the registered owner
or operator has the right to be indemnified by the
real or actual owner of the amount that he may be
required to pay as damage for the injury caused.
(R Transport vs. Luisito Yu, G.R. No 174161, 2015)
—end of topic—

regardless of the nationality of majority of its

III. CORPORATION LAW (Provisions of
stockholders (RCC, Sec. 140).
B.P. Blg 68, as amended by R.A. No.
11232) a. Control Test
A. GENERAL PRINCIPLES Q: What is the control test?

A: The nationality of a private corporation is
Q: What is the definition of a Corporation? determined by the character or citizenship of its
A: It is an artificial being created by operation of law, controlling stockholders (Narra Nickel Mining &
having the right of succession and the powers, Development Corp. v. Redmont Consolidc1ted
attributes and properties expressly authorized by Mines Corp., G.R. No. 195580).
law or incident to its existence. (Revised
Corporation Code [“RCC”], Sec.2) Q: What is the primary test in determining the
nationality of a corporation?
Q: What are the attributes of a corporation? A: The place of incorporation test is the primary and
(ALSP) general test used in determining the nationality of a
A: corporation (RCC, Sec. 140).
a. Artificial being with separate and
distinct personality; However, the control test may be used:
b. Created by operation of Law; 1. In times of war (Filipinas Campen/a De
c. Has the right of Succession; Seguros v. Christern, G.R. No. L-2294,
d. Has the Powers and attributes May 25, 1951);
conferred by law or incident to its 2. In determining compliance with
existence. (RCC, Sec. 2) constitutional and statutory foreign equity
restrictions (Narra Nickel Mining &
Development Corp. v. Redmont
1. NATIONALITY OF Consolidated Mines Corp., G.R. No.
195580, April 21, 2014); or
CORPORATIONS
3. For corporations organized for the purpose
of exploiting natural resources, owning, and
Q: What is a Domestic Corporation?
operating public utilities, mass media,
A: A Domestic Corporation is one formed,
advertising, and other corporations subject
organized or existing under Philippine laws (R.A.
to foreign equity restrictions under Sec. 11
No. 7042, otherwise known as the "Foreign
of Article XII and Sec. 11 of Article XVI of
Investments Act of 1991", Sec. 3 [hereinafter FIA]).
the Constitution (Roy Ill v. Herbosa, G.R.
No. 207246, November 22, 2016).
Q: What is a Foreign Corporation?
A: A Foreign Corporation is one formed, organized
Q: Under the Foreign Investments Act, when is a
or existing under laws other than those of the
corporation considered as a Philippine
Philippines' and whose laws allow Filipino citizens
National?
and corporations to do business in its own country
A: The term "Philippine National" shall mean a
or State (RCC, Sec. 140).
corporation organized under the laws of the
Philippines of which at least 60% of the capital stock
Q: What are the principal tests in determining
outstanding and entitled to vote is owned and held
the nationality of a corporation?
by citizens of the Philippines shall be considered a
A: The tests in determining the corporate nationality
Philippine National.
of a corporation are the following:
1. Place of Incorporation test (RCC, Sec.
A corporation organized abroad and registered as
140); and
doing business in the Philippines under the
2. Control test (Narra Nickel Mining &
Corporation Code of which 100% of the capital stock
Development Corp. v. Redmont
outstanding and entitled to vote is wholly owned by
Consolidated Mines Corp., G.R. No.
Filipinos is a Philippine National (FIA, Sec. 3).
195580, April 21, 2014).
Q: As a general rule, what test is used to
Q: What is the place of incorporation test?
determine the nationality of a corporation
A: Under the place of incorporation test, the
engaged in nationalized or partly-nationalized
nationality of a corporation is determined by under
areas of activities?
whose laws it has been organized and registered,

A: In determining the nationality of a corporation 1. That the foreign investors provide

engaged in nationalized or partly nationalized areas practically all the funds for the joint
of activities, as a general rule, the Control Test shall investment undertaken by these Filipino
be used. Under the Control Test, a corporation shall businessmen and their foreign partner;
be considered a Filipino corporation if the Filipino 2. That the foreign investors undertake to
ownership of its capital is at least 60% and where provide practically all the technological
the 60-40 Filipino-alien shareholdings is not in doubt support for the joint venture;
(Narra Nickel Mining & Development Corp. v. 3. That the foreign investors, while being
Redmont Consolidated Mines Corp., G.R. No. minority stockholders, Manage the
195580, April 21, 2014). company and prepare all economic viability
studies (Narra Nickel Mining and
b. Grandfather Rule Development Corp. v. Redmon/
Consolidated Mines Corp., G.R. No.
Q: What is the Grandfather Rule? 195580, January 28, 2015).
A: The Grandfather Rule is the method by which the
percentage of Filipino equity in a corporation Q: What is the basis of computing for the 60-40
engaged in nationalized and/or partly nationalized percentage requirement?
areas of activities, provided for under the A: The Supreme Court held that what the
Constitution and other nationalization laws, is Constitution requires is that full and legal beneficial
computed, in cases where corporate shareholders ownership of 60% of the outstanding capital stock,
are present, by attributing the nationality of the coupled with 60% of the voting rights, must rest in
second or even subsequent tier of ownership to the hands of Filipino nationals.
determine the nationality of the corporate
shareholder. It involves further investigation as to Thus, for purposes of determining compliance with
the nationality of the personalities with the beneficial constitutional or statutory ownership requirements,
ownership and control of the corporate shareholders the required percentage of Filipino ownership shall
in both the investing and investee corporations be applied to both:
(Narra Nickel Mining & Development Corp. v. 1. The total number of outstanding shares of
Redmont Consolidated Mines Corp, G.R. No. stock entitled to vote in the election
195580, January 28, 2015). directors; and
2. The total number of outstanding shares of
The Strict Rule or the Grandfather Rule applies only stock, whether or not entitled to vote (Roy
when the 60-40 Filipino-foreign equity ownership is Ill v. Herbosa, G.R. No. 207246, Resolution
in doubt. If there is no doubt, the Grandfather Rule of April 18, 2017).
will not apply. (Narra Nickel Mining & Development
Corp. v.Redmont Consolidated Mines Corp., G.R. Both the Voting Control Test and the Beneficial
No. 195580, April 21, 2014}. Ownership Test must be applied to determine
whether a corporation is a "Philippine national" (Roy
Note: It is only when the Control Test is first Ill v. Herbosa, G.R. No. 207246, November 22,
complied with that the Grandfather Rule may 2016).
be applied. Put in another manner, if the subject
corporation's Filipino equity falls below the threshold
60%, the corporation is immediately considered 2. DOCTRINE OF SEPARATE
foreign-owned, in which case, the need to resort to JURIDICAL PERSONALITY
the Grandfather Rule disappears (Narra Nickel
Mining & Development Corp. v. Redmont Q: What is the Doctrine of Separate Juri(Jlcal
Consolidated Mines Corp, G.R. No. 195580, Personality?
January 28, 2015). A: A corporation is a juridical entity with a legal
personality separate and distinct from those acting
Q: What is the meaning of "doubt" for purposes for and on its behalf, and, in general, from the people
of applying the Grandfather Rule? (FTMP) comprising it; the obligations incurred by the
A: "Doubt" refers to various indicia that the corporation, acting through its directors, officers and
"beneficlal ownership" and "control" of the employees are its sole liabilities (Santos v NLRC,
corporation do not in fact reside in Filipino G.R. No. 101699, 1996).
shareholders but in foreign stakeholders.
Q: What is the principle of limited liability? ..
Indicators of doubt include: A: The principle of limited liability provides that a
corporate officer or a stockholder, as a general rule,

is not personally held liable for corporate debts. complained of (Concept Builders Inc. v. NLRC,
Since a corporation has a separate and distinct 108734, 1996).
personality, it may incur its own liabilities and is
responsible for the payment of its debts (Zomer B. DE FACTO CORPORATION VERSUS
Development Co., Jnc,, v. Special Twentieth CORPORATIONS BY ESTOPPEL
Division of the CA, Cebu City, G.R. No. 194461,
January 7, 2020). De jure corporation – Corporation organized in
accordance with requirements of law;
3. DOCTRINE OF PIERCING THE
CORPORATE VEIL De facto corporation (Sec. 19)
A corporation claiming in good faith to be a
Q: What is the Doctrine of Piercing the corporation under the Corporation Code but where
Corporate Veil? there exists a flaw in its incorporation or it falls short
A: Under certain circumstances, the courts may of the requirements provided by law.
disregard the separate and distinct personality of the
corporation from its members or stockholders and Elements of a De facto corporation: (LAGI)
treat the corporation as a mere collection of a. Valid Law under which incorporated;
individuals or an aggregation of persons b. Assumption of corporate powers;
undertaking business as a group such as when the c. Attempt in Good faith to incorporate or
corporate legal entity is used as a cloak for fraud or “colorable compliance;” and
illegality (Kukan Int’l v Reyes, G.R. No. 182729, d. Issuance of certificate of incorporation.
2010). (Arnold Hall v. Piccio, G.R. No. L-2598, 1950)
Q: What are the classifications of piercing Corporation by estoppel – There is a corporation

cases? by estoppel when persons assume to act as a
A: corporation knowing it to be without authority to do
a. Fraud piercing – when a corporate entity is so. (RCC, Sec. 20; Macasaet v. Co, Jr. G.R. No.
used to commit fraud or justify a wrong or to 156759, 2013)
defend a crime.
b. Alter-ego piercing – when a corporate entity C. CORPORATE POWERS
is used to defeat public convenience or is
merely a farce since the corporation is merely 1. How Powers are Exercised
the alter ego, business conduit, or
instrumentality of a person or another entity. Q: How are the corporate powers exercised by
c. Equity cases – when piercing the corporate the shareholders?
fiction is necessary to achieve justice or equity. A: Generally, the vote requirement (either a majority
or ⅔) of the shareholders or members are joined
The three cases may appear together in one with or is a ratification of a majority vote by the Board
application (R.F. Sugay & Co. v. Reyes, G.R. No. L- of Directors.
20451, 1964).
Q: How are the corporate powers exercised by
Q: What are the tests to determine the the Board?
application of Doctrine of Piercing of the A: The Board of Directors is the main agency by
Corporate Veil? (CUP) which all corporate powers and authority are
A: Control – not mere stock control but Complete exercised. Generally, a majority vote of the Board is
Domination – not only of finances, but of policy and needed.
business practice in respect to the transaction
attacked and must have been such that the Q: How are the corporate powers exercised by
corporate entity as to this transaction had at the time the officers?
no separate mind, will or existence of its own. A: The officers shall manage the corporation and
a. Such control must have been Used by the perform such duties as may be provided in the
defendant to commit a fraud or wrong to bylaws and/or as resolved by the board of directors.
perpetuate the violation of a statutory or other (Sec. 24)
positive legal breach of duty, or a dishonest
and an unjust act in contravention of the c. Ultra Vires Acts
plaintiff’s legal right; and,
b. The said control and breach of duty must have Q: What are ultra vires acts?
Proximately caused the injury or unjust loss

A: These are acts done by a corporation outside of Q: What are the consequences of ultra vires
those conferred by the corporation code or by its acts?
AOI and those that are not necessary or incidental • Executed contract – Courts will not set
to the exercise of the powers so conferred. (RCC, aside or interfere with such contracts;
Sec. 45) • Executory contracts – No enforcement
even at the suit of either party (void and
Q: What is required to ratify an ultra vires act? unenforceable);
A: The corporation may ratify the unauthorized acts • Partly executed and partly executory –
of its corporate officer. The substance of the Principle against unjust enrichment shall
doctrine is confirmation after conduct, amounting to apply.
a substitute for a prior authority. Ratification can be
made either expressly or impliedly like silence or d. Trust Fund Doctrine
acquiescence and acceptance of benefits (Yasuma
v. Heirs of Cecilio De Villa, G.R. No. 150350, 2006). Q: What is the trust fund doctrine?
A: The subscriptions to the capital stock of a
Illegal acts cannot be ratified. corporation constitute a fund to which the creditors
have a right to look for satisfaction of their claims
Q: What is the Doctrine of Apparent Authority? and that the assignee in insolvency can maintain an
A: If a corporation knowingly permits one of its action upon any unpaid stock subscription in order
officers, or any other agent, to act within the scope to realize assets for the payment of its debts. (Phil.
of an apparent authority, it holds him out to the Trust Co. v. Rivera, G.R. No. L-19761, 1923)
public possessing the power to so do those acts;
and thus, the corporation will, as against anyone Q: What is the coverage of the trust fund
who has in good faith dealt with it through such doctrine?
agent, be estopped from denying the agent’s A: In case of Solvency: The coverage of the trust
authority. (Francisco v. GSIS, G.R. No. L-18287, fund doctrine is only up to the extent of the “capital
1963) stock” of the corporation. In this sense, the
unrestricted retained earnings do not constitute part
Q: Can an officer of a corporation be a third of the capital stock.
person in contract with the said corporation and
thus, be allowed to invoke Doctrine of Apparent In case of Insolvency: The trust fund doctrine is not
Authority? limited to reaching the stockholders’ unpaid
A: Yes. While it is true that the doctrine cannot be subscriptions. The scope of the doctrine when the
invoked by one who is not a third party, an officer of corporation is insolvent encompasses not only the
a corporation can actually be a third person in capital stock, but also other property and assets
contract with the corporation. (People’s Aircargo v. generally regarded in equity as a trust fund for the
Court of Appeals, G.R. No. 117847, 1998) payment of corporate debts. (Halley v. Printwell,
G.R. No. 157549, 2011)
Q: What are the applicable types of Ultra Vires
cases? Releasing Subscribers: where the corporation
A: released the subscribers to the capital stock from
a. First type: Acts done beyond the powers their subscriptions without valuable consideration.
of the corporation as provided for in the (Ong yong v. Tiu, G.R. No.144476, 2003)
law or its articles of incorporation (Sec.
44) D. BOARD OF DIRECTORS AND
b. Second type: Acts or contracts entered TRUSTEES
into on behalf of the corporation by
persons without corporate authority, even 1. Basic Principles
though the contract is within the powers of
the corporation (Manila Metal Container a. Doctrine of Centralized
Corp. v. PNB, G.R. No. 166862, 2006) Management
and
c. Third type: Acts or contracts, which are Q: What is the doctrine of “Centralized
per se illegal as being contrary to law.
Management”?
A: The corporate powers of corporations shall be
exercised, all business conducted and all property
of such corporations controlled and held by the
board of directors or trustees to be elected from

among the holders of stocks, or where there is no for educational corporations and religious societies
stock, from among the members of the corporation which, under Sections 106 and 114 of the RCC,
(RCC, Sec. 22). shall have not less than 5 nor more than 15 trustees.
b. Business Judgment Rule Q: What is the term of a director or trustee?

(RCC, Sec. 22)
Q: What is the “Business Judgment Rule”? A: Directors shall be elected for a term of one (1)
A: It provides that questions of policy or year from among the holders of stocks registered in
management are left solely to the honest decision of the corporation’s books.
officers and directors of a corporation and the courts
are without authority to substitute their judgment for Trustees shall be elected for a term not exceeding
the judgment of the board of directors; so long as it three (3) years from among the members of the
acts in good faith its orders are not reviewable by corporation.
the courts or the SEC. (PSE v. CA, G.R. No.
125469, 1997) Each director/trustee shall hold office until the
successor is elected and qualified.
The rule has two consequences:
1. The resolution, contracts and Q: What are their qualifications?
transactions of the Board, cannot be a. Must own at least one (1) share of the capital
overturned or set aside by the stock of the corporation in his own name or
stockholders, members or the courts; must be a member in the case of non-stock
and corporations
2. Directors and duly authorized officers b. Any director who ceases to be the owner of
cannot be held personally liable for acts at least one (1) share of the capital stock of
or contracts done with the exercise of the corporation of which he is a director shall
their business judgment. thereby cease to be a director. (Sec. 22)
(VILLANUEVA, PHILIPPINE c. He must not be disqualified under the RCC
CORPORATE LAW 316 (2013)) (Sec. 26)
d. He must possess other qualifications as may
Q: What are the exceptions to the Business be prescribed in the by-laws of the
Judgment Rule? (EFC) corporation. (Gokongwei, Jr. v. SEC, G.R.
a. When the Corporation Code Expressly No. L-45911, 1979)
provides otherwise; e. He must be of legal age
b. When the directors or officers acted with
Fraud, gross negligence or in bad faith; and Q: Is it valid to amend By-Laws in order to place
c. When the directors or officers act against the additional qualifications for members of the
corporation in a Conflict of interest situation. Board of Directors?
(RCC, Sec. 30) A: It is valid to amend By-Laws to place more
qualifications for members of the Board of Directors
other than those required in the Corporation Code.
2. Tenure, Qualifications and The law only provides for minimum qualifications
Disqualifications of Directors that corporations are free to expand. As held in
Gokongwei v. SEC (G.R. No. L-45911, 1979), every
corporation has the inherent power to adopt by-laws
Q: How many members are in the Board of for internal government and to regulate the conduct
Directors? and relationships of its members even in the
A: For Stock Corporations - Shall not be more than absence of enabling specific provisions in the
15 (RCC, Sec. 13) charter.
For Non-Stock Corporations – Q: What are the Disqualifications of Directors,

a. Ordinary Non-Stock - May be more than 15 Trustees, or Officers?
(RCC, Sec. 13) A: A person shall be disqualified from being a
b. Educational corporations and religious director, trustee, or officer of any corporation if,
society – Not less than 5 nor more than 15 within five (5) years prior to the election or
(RCC, Sec. 106 and 114) appointment as such, the person was:
a. Convicted by final judgment:
NOTE: There is no more minimum number of
directors or trustees prescribed in the RCC, except

i. Of an offense punishable by b. Banks and quasi-banks, NSSLAs,

imprisonment for a period pawnshops, corporations engaged in
exceeding six (6) years; money service business, pre-need, trust
ii. For violating this Code; and and insurance companies, and other
iii. For violating “The Securities financial intermediaries; and
Regulation Code”; c. Other corporations engaged in business
b. Found administratively liable for any vested with public interest similar to the
offense involving fraud acts; and above, as may be determined by the SEC,
c. By a foreign court or equivalent foreign considering such factors:
regulatory authority for acts, violations or i. such as the extent of minority
misconduct similar to those enumerated in ownership,
paragraphs (a) and (b) above.(Sec. 26) ii. type of financial products or
securities issued or offered to
Q: Are these grounds exclusive? investors,
A: No, the foregoing is without prejudice to iii. public interest involved in the
qualifications or other disqualifications, which the nature of business operations, and
SEC or the Philippine Competition Commission may iv. other analogous factors.
impose in its promotion of good corporate
governance or as a sanction in its administrative Q: What is the term of a director or trustee
proceedings. (Sec. 26) elected to fill a vacancy?
A: A director or trustee elected to fill a vacancy and
Q: What are the requirements of independent shall serve only for the unexpired term of the
directors? (ISES) predecessor in office. (RCC, Sec. 28)
1. Independent of management and free from
any relationship which could materially
interfere with the exercise of independent 3. Election and Removal of Directors
judgment as a director or Trustees
2. Shareholder and receive fees from the
corporation a. Election of Directors or Trustees
3. Elected by the shareholders present or (Sec. 23)
entitled to vote in absentia during the
election of directors. Q: What is the number of directors or trustees
4. Subject to rules and regulations governing allowed by law?
their qualifications, disqualifications, voting A: The number of directors or trustees allowed by
requirements, duration of term and term law are as follows:
limit, maximum number of board 1. Stock Corporation - shall not be more than 15
memberships and other requirements that (RCC, Sec. 10)
the SEC will prescribe (RCC, Sec. 22) 2. Ordinary Non-Stock Corporation - may be
more than 15 (RCC, Sec. 91);
Q: When are independent directors required? 3. Education corporations and Religious
(RCC, Sec. 22) Society - not less than 5 nor more than 15
A: (RCC, Sec. 106, 114);and
The board of the following corporations vested with 4. Corporation Sole - none (RCC, Sec. 108).
public interest shall have independent directors
constituting at least twenty percent (20%) of such Q: When should the election of directors or
board: trustees be made?
a. Corporations covered by “The Securities A: Elections must be held once every year. The
Regulation Code”, namely: Revised Corporation Code authorizes the
i. those whose securities are corporation to provide in the by-laws the time for
registered with the SEC, holding the annual election of directors or trustees
ii. corporations listed with an and the mode or manner of giving notice thereof
exchange or with assets of at least (RCC, Sec. 46(g)).
Fifty million pesos
(P50,000,000.00) and having two Q: What is the quorum for purposes of election?
hundred (200) or more holders of A: At all elections of directors or trustees, there must
shares, each holding at least one be present, either in person or through a
hundred (100) shares of a class of representative authorized to act by written proxy, the
its equity shares; owners of majority of the outstanding capital stock,

or if there be no capital stock, a majority of the Q: What are the requisites for the removal of a
members entitled to vote. A stockholder or member Director?
who participates through remote communication A: (MN-2/3-C)
or in absentia, shall be deemed present for a. Regular meeting or special Meeting of the
purposes of quorum (RCC, Sec. 23). stockholders or members called for the
purpose;
Q: What are the modes of voting of directors and b. Previous Notice to the stockholders or
trustees? members of the intention to remove;
A: Stockholders or members may vote in the c. Removal must be by a vote of the
following ways: stockholders representing at least 2/3 of the
1. In person; OCS or at least 2/3 of the members, as the
2. Through a representative authorized to act case may be;
by written proxy; or d. Director may be removed with or without
3. Through remote communication or in Cause, unless he was elected by the
absentia, provided that: minority, in which case, it is required that
a. It is so authorized in the by-laws, or there is cause for removal. (RCC, Sec. 27)
b. By a majority of the board of directors.
Q: When are elections for vacancy may be held?
NOTE: The right to vote through remote (RCC, Sec. 28)
communication or in absentia may be exercised in a. Due to term expiration- the election shall be
corporations vested with public interest, held no later than the day of such expiration
notwithstanding the absence of a provision in the at a meeting called for that purpose.
bylaws of such corporations (RCC, Sec 23). b. Result of removal- the election may be held
on the same day of the meeting authorizing
Q: What are the methods of voting in stock the removal and this fact must be so stated
corporations? in the agenda and notice of said meeting.
A: The following are the methods of voting in a stock c. In all other cases, the election must be held
corporation: no later than forty-five (45) days from the
1. Straight Voting – A stockholder may vote time the vacancy arose.
such number of shares for as many persons
as there are directors to be elected; Q: When can a vacancy NOT by removal or
2. Cumulative Voting for One Candidate – A expiration of term be filled? (RCC, Sec. 28)
stockholder may cumulate said shares and A: It may be filled by:
give one (1) candidate as many votes as a. the vote of at least a majority of the
the number of directors to be elected remaining directors or trustees, if still
multiplied by the number of the shares constituting a quorum;
owned; and b. if not, said vacancies must be filled by the
3. Cumulative Voting by Distribution – A stockholders or members in a regular or
stockholder may distribute them on the special meeting called for that purpose.
same principle among as many candidates
as may be seen fit (RCC, Sec. 23). Q: When is Emergency Action required? (RCC,
Sec. 28)
Q: What are the methods of voting in non-stock A: Requirements:
corporations? a. If the vacancy prevents the remaining
A: Members of non-stock corporations may cast as directors from constituting a quorum
many votes as there are trustees to be elected but b. emergency action is required to prevent
may cast not more than one vote for one candidate. grave, substantial, and irreparable loss or
This is the manner of voting in non-stock damage to the corporation
corporations unless otherwise provided in the AOI
(RCC, Sec. 23). Q: What are the effects when Emergency Action
is taken?
NOTE: Cumulative voting is not available unless a. The vacancy may be temporarily filled from
allowed and provided for by the AOI or by-laws among the officers of the corporation by
(RCC, Sec. 23). unanimous vote of the remaining directors
or trustees.
b. Removal of Directors or Trustees b. The action by the designated director or
(Sec. 27) trustee shall be limited to the emergency
action necessary,

c. The term shall cease within a reasonable

time from the termination of the emergency c. Personal Liabilities
or upon election of the replacement director
or trustee, whichever comes earlier. Q: What is the rule on liability of Directors,
d. The corporation must notify the SEC within Trustees and Officers?
three (3) days from the creation of the A: General Rule: Corporate personality is a shield
against personal liability of corporate officers.
emergency board, stating therein the
(Consolidated Bank v. Court of Appeals, G.R. No.
reason for its creation.
141767, 2001)
Q: What is the rule on the alien membership in HOWEVER, personal liability of a corporate director,
Board of Directors? trustee or officer along (although not necessarily)
A: P.D. No. 715: "election of aliens as members of with the corporation may so validly attach, as a rule,
the board of directors of governing body of only when: (ABCAWAL)
corporations or associations engaging in partially 1. He Assents to a patently unlawful act of the
nationalized activity shall be allowed in proportion to corporation (RCC, Sec. 30)
their allowable participation or share in the capital of 2. Bad faith or gross negligence in directing its
such entities." affairs (RCC, Sec. 30)
3. Conflict of interest resulting in damage to the
Non-Filipino citizens may become members of the corporation, its stockholders or other persons
board of directors of a bank to the extent of the (RCC, Secs. 30 & 33)
foreign participation in the equity of said bank. 4. He attempts to Acquire, or acquires any interest
(General Banking Law, Sec. 15) adverse to the corporation in respect of any
matter which has been reposed in them in
confidence (liable as a trustee for the
4. Duties, Responsibilities and corporation under Sec. 30(2))
Liabilities for Unlawful Acts 5. He consents to the issuance of Watered stocks
or, having knowledge thereof, he does not
a. Rules on Fiduciaries’ Duties and forthwith file with the corporate secretary his
Liabilities written objection thereto (RCC, Sec.64);
6. He Agrees to hold himself personally and
Q: What are the three Three-Fold Duties of solidarily liable with the corporation;
Directors? 7. He is made personally liable by a specific
provision of Law. (RCC, Sec. 158; Tramat
DUTY OF To direct the affairs of the Mercantile v. Court of Appeals, G.R. No.
OBEDIENCE corporation only in 111008, 1994.)
accordance with the
purposes for which it was d. Responsibility For Crimes
organized (Sec. 24)
Q: What is the rule for the responsibility for
DUTY OF Directors or trustees shall crimes of directors/trustee?
LOYALTY not acquire any personal or A: General rule: The Board being generally a
pecuniary interest in conflict policy-making body, directors as such cannot be
with their duty as such held liable under a criminal statute making those in
directors or trustees (Sec. 30 charge of the management of the corporation liable
& 33) for the criminal acts done in pursuit of corporate
DUTY OF Directors and/or trustees operations.
DILIGENCE shall not willfully and
knowingly vote for or assent Exception: To be held criminally liable for the acts
to patently unlawful acts of of a corporation, there must be a showing that its
the corporation or act in bad officers, directors, and shareholders actively
faith or with gross participated in or had the power to prevent the
negligence in directing the wrongful act. (SEC v. Price Richardson Corp., G.R.
affairs of the corporation. No. 197032, 2017)
(Sec. 30)
e. Special Fact Doctrine
b. Solidary liabilities for damages Q: What is the special fact doctrine?

A: Under the Special Facts Doctrine, although a Q: X filed a complaint against Y Corp. praying
director does not stand in fiduciary relation to the that he be allowed to inspect Y Corp.’s corporate
stockholder, he is under legal obligation to make fair books and records, minutes of meetings, and
and full disclosure of pertinent official information financial statements. X claimed to be a bona fide
where special circumstances exist, giving rise to the stockholder of Y Corp. and attached copies of
obligation to disclose. (Soledad M. Cagampang, stock certificates indorsed in his favor on the
The Fiduciary Duties of Corporate Directors Under dorsal portion of the original holders. Y Corp.
Philippine Law, 46 Phil. L. J., 513, 562 [1971]) claimed that X was not a stockholder. To verify
X’s stock ownership, the RTC asked X to
Q: P held shares of stock of R, a domestic produce his stock certificates. After X failed to
corporation. R decided to amend its articles of produce his stock certificates, the RTC
incorporation to remove stockholders’ pre- dismissed the complaint. Is the presentation of
emptive rights to newly issued shares of stock a stock certificate a condition sine qua non for
but the petitioners voted against it and proving one’s shareholding in a corporation?
demanded payment of their shares at P2/share
based on book value. However, R found that the A: No. Although a stock certificate is prima facie
fair value was unacceptable and insisted it evidence that the holder is a shareholder of the
should only be P0.41/share considering it had corporation, the possession of the certificate is not
no unrestricted retained earnings to cover the the sole determining factor of one’s stock
amount. Due to the disagreement, an appraisal ownership. A stock certificate is merely the paper
committee was constituted. The committee representative or tangible evidence of the stock
reported its valuation of P2.5/share and so P itself and of the various interests therein. The
demanded payment based on that. Still, R certificate is not stock in the corporation but is
refused to pay the dissenting stockholders. merely evidence of the holder's interest and status
in the corporation, his ownership of the share
Can payment be made to any dissenting represented thereby, but is not in law the equivalent
stockholder in case the R has no available of such ownership. It expresses the contract
unrestricted retained earnings? between the corporation and the stockholder, but it
is not essential to the existence of a share in stock
A: No. As a general rule, a stockholder who dissents or the creation of the relation of shareholder to the
from a certain corporate action has the right to corporation. There are other competent means of
demand payment of the fair value of his or her establishing one’s shareholdings in a corporation,
shares and that is known as right of appraisal. such as official receipts of payments for
(RCC, Sec. 80) Notwithstanding the foregoing, no subscriptions of shares, copies duly certified by the
payment shall be made to any dissenting SEC stating that the corporation had issued shares
stockholder unless the corporation has unrestricted in favor of the complainant, and the General
retained earnings in its books to cover the payment. Information Sheet. (Insigne v. Abra Valley Colleges,
In case the corporation has no available unrestricted G.R. No. 204089, 2015)
retained earnings in its books, Sec. 82 of the RCC
provides that if the dissenting stockholder is not paid E. STOCKHOLDERS AND MEMBERS
the value of his shares within 30 days after the
award, his voting and dividend rights shall 1. Rights and Obligations of
immediately be restored. The trust fund doctrine Stockholders and Members
backstops the requirement of unrestricted retained
earnings to fund the payment of the shares of stocks Q: What are the fundamental rights of
of the withdrawing stockholders. The creditors of a stockholders and members?
corporation have the right to assume that the board A: The following are important rights of
of directors will not use the assets of the corporation stockholders, which continue to exist even when the
to purchase its own stock for as long as the shares have been sequestered:
corporation has outstanding debts and liabilities. a. Right to attend meetings and to vote
There can be no distribution of assets among the b. Right to receive dividends
stockholders without first paying corporate debts. c. Right to receive distributions upon
Thus, any disposition of corporate funds and assets liquidation of the corporation
to the prejudice of creditors is null and void. (Turner d. Right to inspect the books of the
v. Lorenzo Shipping Corporation, G.R. No. 157479, corporation
November 24, 2010) e. Pre-emptive rights (Cojuangco, Jr. vs.
Roxas, G.R. No. 91925, 1991)

a. Doctrine of Equality of Shares b. Increase/Decrease Corporate Stock;

(Sec. 6) c. Incur, Create Bonded Indebtedness;
d. Deny pre-emptive right;
Q: What is the presumption on the value of each e. Sell, dispose, lease, encumber all or
share with respect to others shares? substantially all of corporate assets;
A: Under the Doctrine of Equality of Shares, each f. Investing another corporation, business other
share shall be equal in all respects to every other than the primary purpose;
share, except as otherwise provided in the articles g. Declare stock dividends
of incorporation and in the certificate of stock (RCC, h. Enter into management contract if
Sec. 6). 1. A stockholder or stockholders representing
the same interest of both the managing and
2. Participation In Management the managed corporations own or control
more than 1/3 of the total outstanding
b. Proxy capital entitled to vote of the managing
corporation; or
Q: What is a proxy and its requisites? 2. A majority of the members of the board of
A: Section 57 of the Corporation Code provides that directors of the managing corporation also
stockholders and members may vote in person or by constitute a majority of the members of the
proxy in all meetings of stockholders or members. board of the managed corporation;
i. Amend the Articles of Incorporation
Requisites: (WSF)
1. The proxy shall be in Writing;
2. Signed by the stockholder or member; and 3. Proprietary Rights
3. Filed before the scheduled meeting with the
corporate secretary (Sec. 57) e. Right To Dividends
Q: Can a proxy holder be voted for as a director Q: When does the right to dividends accrue?
or trustee? A: The accrual of right to dividends depends on the
A: No. Proxies, who are not stockholders or type of dividend declared:
members, cannot be elected as a director or trustee. 1. Cash dividends - as soon as cash dividends
(Lim v. Moldex Land, Inc., G.R. No. 206038, 2017) are publicly declared, the stockholders have
the right to their pro rata shares; or
c. Voting Trust 2. Stock dividends - a stock dividend, aside
from board approval, requires approval of
Q: What are voting trust agreements? stockholders representing at least 2/3 of the
A: A stockholder confers upon a trustee the right to outstanding capital stock (RCC, Sec. 42).
vote and other rights pertaining to the shares for a
period not exceeding 5 years at any one time. (Sec. Q: How does delinquency of a stockholder affect
58) his/her right to dividends?
A: The delinquent stockholder is still entitled to
Requisites: (WNTF) dividends, subject to the following conditions:
1. The proxy shall be in Writing; 1. Cash dividends due on delinquent stock shall
2. It is Notarized; first be applied to the unpaid balance on the
3. Specifying the Terms and conditions; subscription plus costs and expenses; and
4. A certified copy must be Filed with the 2. Stock dividends shall be withheld until their
corporation and with the SEC. (Sec. 58)) unpaid subscription is fully paid (RCC, Sec.
42).
d. Cases When Stockholder’s Action
is Required f. Right To Inspect
Q: When is a majority stockholders’ vote Q: What is the right to inspect?

required? A: Corporate records, regardless of the form in
1. To enter into management contract if any of which they are stored, shall be open to inspection by
the two instances stated above are absent; any director, trustee, stockholder or member of the
2. To adopt, amend or repeal the by-laws. corporation in person or by a representative at
reasonable hours on business days, and a demand
Q: When is a 2/3 stockholders’ vote required? in writing may be made by such director, trustee or
a. Extend or shorten corporate term;

stockholder at their expense, for copies of such This right may be denied by the articles of
records or excerpts from said records. (Sec. 73). incorporation or an amendment thereto. (RCC, Sec.
38)
Also, a corporation shall furnish a stockholder or
member, within 10 days from receipt of their written Q: What is the right of first refusal?
request, its most recent financial statement (Sec. A: Right of first refusal provides that a stockholder
74). who may wish to sell or assign his shares must first
offer the shares to the corporation or to the existing
Note: the first three are the formulation of the old stockholders of the corporation. Only when the
code. Under the Revised Corporation Code, corporation or the other stockholders do not or fail
inspection rights covers a’’ “corporate records, to exercise their option, is the offering stockholder at
regardless of the form in which they are stored” (see liberty to dispose of his shares to third parties.
(Villanueva, Philippine Corporate Law 422-23
Sec. 73)
(2013))
Q: What are the grounds for not allowing
Q: What is the difference between pre-emptive
inspection by a Stockholder? right and right of first refusal?
a. If the person demanding to examine the
RIGHT OF FIRST
records has improperly used any information PRE-EMPTIVE RIGHT
REFUSAL
secured for prior examination,
b. He is not acting in good faith, Generally may be
c. A requesting party who is not a stockholder Arises only by virtue of
exercised, subject to
or member of record, or is a competitor shall contractual
limitations in Corporation
have no right to inspect or demand stipulations or by law
Code
reproduction of corporate records. (Sec. 73)
Covers unissued shares Covers shares already
g. Pre-Emptive Right offered for subscriptions issued
Q: What is the rule regarding the shareholder’s Can only be exercised

preemptive rights? by the owner and not
May be exercised by
A: General Rule: Stockholders have the pre- mere trustee or
mere trustee or
emptive right to subscribe to all issues or disposition conservator, since it is
conservator (Republic v.
of shares of any class in proportion to their an act of ownership
Sandiganbayan, G.R.
shareholdings (Republic v.
No. 107789, 2003)
Sandiganbayan, G.R.
Exception: No. 107789, 2003)
• Denied by the Articles of Incorporation or
amendment thereto; Right claimed against the Right exercisable
• Shares are issued in compliance with laws Corporation, where the against the seller-
requiring minimum stock ownership by the stockholder must pay stockholder
public
• Shares issued in good faith in exchange for
property for corporate purposes approved h. Right of First Refusal
by 2/3 of the OCS
Q: What is the right of first refusal?
• Shares in payment of previously contracted
A: The right of first refusal is the option granted to
debts approved by 2/3 of OCS (RCC, Sec.
the corporation and/or its stockholders to purchase
38)
the shares of a transferring stockholder upon
reasonable terms and conditions. The corporation
Q: What is preemptive right?
and its stockholders have no right of first refusal
A: Preemptive right is the shareholders’ right to
unless such restriction on transfer is embodied in
subscribe to all issues or dispositions of shares of
the articles of incorporation, bylaws of the
any class in proportion to his present stockholdings,
corporation, and stock certificates of the corporation
the purpose being to enable the shareholder to
(DIVINA, Divina on Commercial Law: A
retain his proportionate control in the corporation.
Comprehensive Guide (2021), p. 671).

4. Remedial Rights F. CAPITAL STRUCTURE
Q: What actions can a shareholder file to protect 1. Shares of Stock

his or the corporation's interests?
A: A shareholder has the right to file three types of a. Nature of Shares of Stock
suits:
1. Individual Suits; Q: What is the nature of shares of stock?
2. Representative Suits; or A: Shares of stock are intangible personal property
3. Derivative Suits (Cua, Jr. v. Tan, G.R. No. with an intrinsic pecuniary value. They represent
181455-56, December 4, 2009). aliquot parts of the corporation’s capital and are
symbolized by a stock certificate.
5. Intra-Corporate Disputes They do not represent proprietary rights of

shareholders to the assets or properties of the
Q: What are the two tests to determine existence corporation.
of intra-corporate dispute?
1. Relationship Test b. Consideration for Shares of Stock
A dispute is intra-corporate if it is: (Sec. 61)
1. Between the corporation,
partnership or association and the public; Q: What are the considerations that the law
2. Between the corporation, allows for the issuance of stock? (APLIUOSO)
partnership or association and the state A: Consideration for the issuance of stock may be:
insofar as its franchise, permit or license to (a) Actual cash paid to the corporation
operate is concerned; (b) Property, tangible or intangible, actually
3. Between the corporation, received by the corporation and necessary
partnership or association and its or convenient for its use and lawful
stockholders, partners, members or officers; purposes at a fair valuation equal to the par
and or issued value of the stock issued;
4. Among the stockholders, partners (c) Labor performed for or services actually
or associates themselves (Philippine rendered to the corporation;
Communications Satellite Corp. v.
Sandiganbayan, G.R. No. 203023, 2015) Note: This refers to service already
performed since a value can be assigned to
2. Nature of the Controversy Test such service. It cannot be future services.
The dispute itself must be intrinsically connected
with the regulation of the corporation, partnership or (d) Previously incurred Indebtedness of the
association. corporation;
The controversy "must not only be rooted in the (e) Amounts transferred from Unrestricted
existence of an intra-corporate relationship, but retained earnings to stated capital;
must also refer to the enforcement of the parties' (f) Outstanding shares exchanged for stocks in
correlative rights and obligations under the the event of reclassification or conversion;
Corporation Code as well as the internal and (g) Shares of stock in another corporation;
intra-corporate regulatory rules of the corporation." and/or
(Dy Teban Trading Inc. v. Dy, G.R. No. 161803, (h) Other generally accepted form of
2008) consideration.
Q: Who has the jurisdiction to settle intra- Q: What are the limitations for the issuance of
corporate disputes? stocks?
A: Section 5 of the Securities Regulation Code A: The limitations are:
transferred the jurisdiction of the (SEC) over 1. Stocks shall not be issued for a
intra-corporate disputes to RTCs designated by the consideration less than the par or
Supreme Court as commercial courts. The issued price thereof.
existence of an intra-corporate dispute must be 2. Shares of stock shall not be issued in
clearly alleged in the complaint. However, the SEC exchange for promissory notes or future
shall retain jurisdiction over pending cases involving service.
intracorporate disputes submitted for final 3. If the consideration is other than actual
resolution. cash, or consists of intangible property
such as patents or copyrights, the

valuation thereof shall initially be A: Treasury shares are stocks previously issued
determined by the stockholders or the and fully paid for and reacquired by the corporation
board of directors, subject to the through lawful means (purchase, donation, etc.); not
approval of the Commission. entitled to vote and no dividends could be declared
c. Watered Stock thereon as corporations cannot declare dividends to
itself.
Q: What are watered stocks?
A: Watered stocks are issued for less than the par
2. Certificate of Stock
value or issued value or for a consideration other
than cash, valued in excess of its fair value.
a. Nature of the Certificate (Sec. 62)
Q: What is the liability of directors for watered
Q: What is the nature and function of a certificate
stocks?
of stock?
A: The issuance of watered stocks is prohibited.
A: A stock certificate is a written instrument signed
When a director or officer of a corporation either (a)
by the proper corporate officers stating or
consents or (b) having knowledge of the insufficient
acknowledging that the person named in the
consideration, does not file a written objection with
document is the owner of a designated number of
the corporate secretary, they shall be liable to the
shares of its stock. (Lao v. Lao, G.R. No. 170585,
corporation or its creditors, solidarily with the
2008)
stockholder concerned for the difference between
the value received at the time of issuance of the
A stock certificate is not necessary to render one a
stock and the par or issued value of the same.
shareholder in a corporation; nevertheless, it is the
paper representative or tangible evidence of the
d. Situs of the Shares of Stock
share itself and the various interests therein. The
stock certificate expresses the contract between the
Q: What is the situs of shares of stock?
corporation and the shareholder, but it is not
A: Situs of shares is the domicile of the corporation
essential to the existence of a share in or the
that issued them. (Wells Fargo Bank and Union v.
creation of the relationship with the shareholder.
Collector, G.R. No. L-46720, 1940)
(Tan v. SEC, G.R. No. 95696, 1992)
e. Classes of Shares of Stock (Sec. 6)
b. Uncertified Shares (Sec. 62)
Q: What are common shares?
Q: What are the rules on uncertificated shares?
A: Common shares are also called ordinary shares
A: The Commission may require corporations
and they share in profits pro-rata.
whose securities are traded in trading markets, and
which can reasonably demonstrate their capability
Q: What are preferred shares?
to do so to issue their securities or shares of stocks
A: Preferred shares y be preferred (a) as to
in uncertificated or scripless form in accordance with
dividends, or (b) as to distribution of assets during
the rules of the Commission.
liquidation, or (c) as to any other manner stated in
the Articles, not violative of the Corp Code. If
c. Negotiability; Requirements for
authorized by Articles, Board may fix terms. It is
Valid Transfer of Stocks
ALWAYS with a stated par value.
Q: Why is a stock certificate regarded as quasi-
Q: What are founder’s shares? negotiable instrument and not a negotiable one?
A: Given rights and privileges not enjoyed by A: A stock certificate is merely a quasi-negotiable
owners of other stocks; exclusive right to vote/be instrument in the sense that it may be transferred by
voted in the election of directors shall not exceed 5 endorsement, coupled with delivery; but it is not
years. negotiable because the holder thereof takes it
without prejudice to such rights or defenses as the
Q: What are redeemable shares? registered owners or transferor’s creditors may have
A: These are expressly provided in articles; may be under the law, except only insofar as such rights or
purchased/taken up upon expiration of the period of defenses are subject to the limitations imposed by
said shares purchased whether or not there are the principles governing estoppel. (Delos Santos v.
unrestricted retained earnings; may be deprived of Republic, G.R. No. L-4818, 1955)
voting rights.
d. Issuance (Sec. 63)
Q: What are treasure shares?

Q: What is the rule on issuance of shares? 3. Disposition and Encumbrance of

A: No certificate of stock shall be issued to a Shares
subscriber until the full amount of the subscription
together with interest and expenses (in case of a. Sale of Shares
delinquent shares), if any is due, has been paid.
Q: What is the rules on sales of shares?
e. Lost or Destroyed Certificates General Rule: Shares are not owned or are the
(Sec. 72) assets of the corporation—they are owned by the
shareholders of record. Based on the Doctrine of
Q: What is the procedure for issuance of new Free Transferability of Shares, the sale of shares
certificates of stock in lieu of those which have may be made by shareholders as this is their
been lost, stolen or destroyed? property right.
A: The following procedure shall be followed by a
corporation in issuing new certificates of stock in lieu Exception: Right of First Refusal
of those which have been lost, stolen or destroyed: No shares of stock against which the corporation
(a) Affidavit – The registered owner shall holds any unpaid claim shall be transferable in the
execute and file an affidavit regarding the books of the corporation. (Sec. 62)
share and the circumstances regarding its
loss; b. Allowable restrictions on the sale
(b) Verification – The corporation shall verify of shares
the affidavit and other information and
evidence with the books of the corporation; Q: What are the allowable restrictions on the
(c) Publication – The corporation shall publish sale of shares?
a notice in a newspaper of general A: The following are allowable restrictions on the
circulation published in the place where the sale of shares:
corporation has its principal office, once a 3. Pledge or Mortgage (Fua Cun v.
week for 3 consecutive weeks at the Summers, G.R. No. 19441, 1923)
expense of the registered owner of the 4. Equitable Mortgage Assignment (APT
certificate of stock that has been lost, stolen, v. Sandiganbayan, G.R. No. 109376,
or destroyed; 2000)
(d) One-Year Waiting Period – There shall be a 5. Attachments and Executions (Chemphil
waiting period of 1 year from the date of the Export & Import Corp. v. CA, G,R. Nos.
last publication during which a contest can 112438-39, 1995)
be interposed; 6. Other Encumbrances on Shares
(e) Contest – If a contest has been presented
to said corporation or if an action is pending c. Requisites of a Valid Transfer
in court regarding the ownership of said
certificate of stock, the issuance of the new Q: What are the requirements for a valid transfer
certificate of stock shall be suspended until of stocks?
the final decision of the court regarding the A: Under Sec. 62 of RCC, certain minimum
ownership of said certificate of stock which requisites must be complied with for there to be a
has been lost, stolen or destroyed; and valid transfer of stocks:
(f) Replacement – If there is no contest within (a) there must be delivery of the stock certificate;
the one-year period, the corporation shall (b) the certificate must have been endorsed by the
then replace the certificate (RCC, Sec. 72) owner or his attorney-in-fact or other persons legally
authorized to make the transfer; and to be valid
Exception (SEC Opinion 28 Jan. 1999) against third parties, the transfer must be recorded
While Sec. 72 of RCC appears to be mandatory, the in the corporate books.
same admits exceptions, such that a corporation
may voluntarily issue a new certificate in lieu of the No transfer, however, shall be valid, except as
original stock certificate which has been lost without between the parties, until the transfer is recorded in
complying with the requirements under said section. the books of the corporation showing the names of
It would be an internal matter for the corporation to the parties to the transaction, the date of the
find measures in ascertaining who are the real transfer, the number of the certificate or certificates,
owners of shares for purposes of liquidation. It is and the number of shares transferred. (Sec. 62)
well-settled that unless proven otherwise, the “stock
and transfer book” is the best evidence to establish d. Involuntary Dealings
stock ownership.

Q: What are involuntary dealings of shares? registered mail at least twenty (20) days
A: Involuntary dealings of shares are recognized prior to the meeting;
under Sec. 54 of the RCC which pertains to the right 3. The notice of meeting should also be
of a stockholder to grant security interest in his or published for once in a newspaper
her shares in stock corporations. published in the principal place of business,
otherwise, in a newspaper of general
G. DISSOLUTION AND LIQUIDATION circulation
4. The resolution to dissolve must be
Q: What is corporate dissolution?
approved by the majority of the
A: Extinguishment of the franchise of a corporation
and the initiation of the termination of its corporate directors/trustees and approved by the
existence stockholders representing at least majority
of the outstanding capital stock or majority
However, the corporation shall nevertheless be of members;
continued as a body corporate for three (3) years 5. A verified request for dissolution is then
after the time when it would have been so dissolved, filed with the SEC stating the reason for
for the purpose of prosecuting and defending suits dissolution, and the complying with the
by or against it and enabling it to settle and close its requirements of formality.
affairs, to dispose of and convey its property and to 6. In addition, the following shall be submitted
distribute its assets, but not for the purpose of to the SEC:
continuing the business for which it was established. a. Copy of the resolution authorizing
(Sec. 122)
the dissolution, certified by a
majority of the board and
1. Modes of Dissolution: countersigned by the secretary;
b. Proof of publication
Q: What are the two modes of dissolution under c. Favorable recommendation from
the RCC? the appropriate regulatory agency,
A: A corporation organized under the Code may be when necessary.
dissolved voluntarily or involuntarily. 7. The SEC shall, within 15 days from the
receipt of the verified request for
e. Voluntary dissolution, and in the absence of any
withdrawal within said period, approve the
Q: What are the modes of voluntary dissolution? request and issue the certificate of
A: The modes of voluntary corporate dissolution are: dissolution, upon which the dissolution will
1. Expiration of the original term (Sec. 11) take effect (Sec. 134)
2. Voluntary dissolution where NO
creditors are affected, after vote of the Q: How may voluntary dissolution be effected
board of directors or trustees and the where creditors are affected?
stockholders or members of the A: Procedure where the dissolution of the
corporation. (Sec. 134) corporation may prejudice the rights of any creditor:
3. Voluntary dissolution where dissolution 1. A verified petition for dissolution shall be
of the corporation may prejudice the filed with the SEC.
rights of any creditor, after hearing and 2. The petition shall be:
judgement of the SEC. (Sec. 135) a. signed by a majority of the
4. By shortening the corporate term, by corporation’s board of directors or
amending the AOI (Sec. 137) trustees
5. By withdrawal of dissolution (Sec. 137)
b. verified by its president or
secretary or one of its directors or
Q: How may voluntary dissolution be affected
where no creditors are affected? trustees
A: Procedure of voluntary dissolution where no c. shall set forth all claims and
creditors are affected: demands against it
1. A meeting must be held on the call of d. that its dissolution was resolved
directors or trustees; upon by the affirmative vote of the
2. Notice of the meeting should be given to the stockholders representing at least
stockholders by personal delivery or two-thirds (2/3) of the outstanding
capital stock or at least two-thirds

(2/3) of the members at a meeting 1. Approved by a majority vote of the board of

of its stockholders or members directors or trustees, and
called for that purpose. 2. Ratified at a meeting by the stockholders or
3. The petition shall likewise state: members representing at least two-thirds
a. the reason for the dissolution; (2/3) of the outstanding capital stock or of
b. the form, manner, and time when its members.
the notices were given;
c. the date, place, and time of the Q: When is the corporation deemed dissolved
meeting in which the vote was when the corporate term is shorted?
made. A: The corporation shall be deemed dissolved
4. The corporation shall submit to the SEC the without any further proceedings, subject to
following: provisions on liquidation, upon the expiration of the
shortened term as stated in the approved amended
a. a copy of the resolution authorizing
AOI. In the case of expiration of corporate term,
the dissolution, certified by a dissolution shall automatically take effect on the day
majority of the board of directors or following the last day of the corporate term stated in
trustees and countersigned by the the AOI, without need for the issuance by the SEC
secretary of the corporation; and of the certificate of dissolution. (Sec. 136)
b. list of all its creditors.
5. By an order reciting the purpose of the Q: How can a corporation whose term expired,
petition, the SEC shall fix a deadline for apply for revival?
filing objections to the petition (shall not be A: If a corporation’s term has expired, it may apply
less than thirty (30) days nor more than for a revival of its corporate existence, together with
sixty (60) days after the entry of the order). all the rights and privileges under its certificate of
6. Publication: Before such the deadline, a incorporation and subject to all of its duties, debts
and liabilities existing prior to its revival. Upon
copy of the order shall be published at least
approval by the SEC, the corporation shall be
once a week for three (3) consecutive
deemed revived and a certificate of revival of
weeks in a newspaper of general corporate existence shall be issued, giving it
circulation published in the municipality or perpetual existence, unless its application for revival
city where the principal office of the provides otherwise. (Sec. 11)
corporation is situated, otherwise, in a
newspaper of general circulation in the Q: How may a withdrawal of Request of
Philippines dissolution be affected?
7. Posting: A similar copy shall be posted for A: The withdrawal shall be made:
three (3) consecutive weeks in three (3) 1. Made in writing,
public places in such municipality or city. 2. Duly verified by an incorporator, director,
8. After the expiration of the time to file trustee, shareholder or member, and
objections, a hearing shall be conducted 3. Signed by the necessary number of
upon prior five (5) day notice to hear the incorporators, directors, trustees,
objections; shareholders, or members necessary to
9. Judgment shall be rendered dissolving the request for dissolution; and
corporation and directing the disposition of 4. Submitted to the no later than 15 days
assets; the judgment may include from receipt by the SEC of the request for
appointment of a receiver. dissolution (Sec. 137)
Q: When does voluntary dissolution take effect? Q: How may a procedure on withdrawal of
A: The dissolution shall take effect only upon Petition for dissolution be affected?
issuance by the SEC of a certificate of dissolution* A: A withdrawal of the petition for dissolution shall
(Sec. 134-135) be in the form of a motion and similar in substance
to a withdrawal of request for dissolution but shall be
Q: How may voluntary dissolution by shortening verified and filed prior to publication of the order
the corporate term be effected? setting the deadline for filing objections to the
A: A private corporation may extend or shorten its petition. (Sec. 137)
term by amending the articles of incorporation,
when: f. Involuntary

Q: How may a corporation be dissolved A: The following are the methods of corporate
involuntarily? liquidation:
A: A corporation may be dissolved bythe SEC motu 1. Through the corporation’s Board of
proprio or upon filing of a verified complaint by any directors or trustees (Sec. 139, Par. 1)
interested party. (Sec. 138) 2. Through a trustee to whom the corporate
assets have been conveyed (Sec. 139, Par.
Q: What are the grounds for involuntary 2)
dissolution of the corporation: 3. Through a management committee or
A: The following may be the grounds for the rehabilitation receiver appointed by the
dissolution of the corporation: SEC (Sec. 135, Par. 5)
a. Non-use of corporate charter as provided
under Section 21 of this Code; Q: How may the corporation effect its
b. Continuous inoperation of a corporation as liquidation?
provided under Section 21 of this Code; A: Through its board of directors or trustees through
c. Upon receipt of a lawful court order the normal procedure within the three-year period.
dissolving the corporation; BUT even if no trustee is appointed or designated
during the three-year period of the liquidation of the
d. Upon finding by final judgment that the
corporation, the Court has held that the Board of
corporation procured its incorporation Directors may be permitted to complete the
through fraud; corporate liquidation by continuing as trustees by
e. Upon finding by final judgment that the legal implication (Vigilla et al. v Philippine College of
corporation: Criminology, G.R. No. 200094, 2013)
1. Was created for the purpose of
committing, concealing or aiding NOTE: This only concerns the matters/actions that
the SEC of securities violations, are initiated during the 3 year grace period. The
smuggling, tax evasion, money Board cannot be considered as trustees for matters
laundering, or graft and corrupt initiated after the 3-year period.
practices;
2. Committed or aided in the SEC of Q: How is liquidation made through trustees?
A: Liquidation through trustee may be made at any
securities violations, smuggling,
tax evasion, money laundering, or time during the three years of liquidation, a
graft and corrupt practices, and its corporation is authorized and empowered to convey
stockholders knew of the same; all of its property to trustees for the benefit of
stockholders, members, creditors, and other
and
persons in interest. The three (3)-year limitation will
3. Repeatedly and knowingly
not apply provided the designation of the trustee is
tolerated the SEC of graft and
made within said period.
corrupt practices or other
fraudulent or illegal acts by its
Q: When may a receiver be appointed to
directors, trustees, officers, or
facilitate the liquidation of a corporation?
employees. (Sec. 138) A: Liquidation through a receiver is created by
means of judicial or quasi-judicial appointment of the
2. Methods of Liquidation
receiver. The receiver is actually an officer of the
court and must therefore be accountable to the
Q: What is liquidation?
court.
A: Process by which all the assets of the corporation
are converted into liquid assets in order to facilitate
the payment of obligations to creditors, and the Q: In what instances may liquidated be effected
remaining balance if any is to be distributed to the even after the three-year period?
stockholders. A: If full liquidation can only be effected after the 3-
year period and there is no trustee, the directors
There is no time limit within which the trustees must may be permitted to complete the liquidation by
complete a liquidation placed in their hands (Vigilla continuing as trustees by legal implication
et.al. v. Philippine College of Criminology, G.R. No. (Reburiano v. CA, G.R. No. 102965, 1999).
200094, 2013).
The trustee may continue to prosecute a case
Q: What are the methods of corporate commenced by the corporation within three years
liquidation? from its dissolution until rendition of the final

judgment, even if such judgment is rendered beyond be held of record by not more than a
the three-year period allowed by Section [139]. specified number of persons, not exceeding
However, an already defunct corporation cannot twenty (20)
initiate a suit after the lapse of the three-year period. 2. All the issued stock of all classes shall be
(Alabang Dev’t v. Alabang Hills Village Ass’n, G.R. subject to one or more specified restrictions
No. 196950, 2014) on transfer permitted by this Title
3. The corporation shall not list in any stock
Q: What must the corporation wind up its exchange or make any public offering of
affairs? any of its stock of any class.
A: If it is dissolved by:
a. By expiry of term or NOTE: A corporation shall not be deemed a close
b. Is annulled by forfeiture, or otherwise, or corporation when at least two-thirds (2/3) of its
c. Is terminated In any other manner (Sec. voting stock or voting rights is owned or controlled
139) by another corporation which is not a close
corporation within the meaning of the Corporation
Q: What are the effects of winding up of affairs? Code. (Sec. 95)
A: The following are the effects of winding up of
affairs:
a. Continues as a corporate body for 3 years 2. Non-Stock Corporations
to prosecute and defend suits against it,
Q: What is a non-stock corporation?
close its affairs, dispose and convey its
A: A non-stock corporation is one where no part of
property and distribute assets
its income is distributed as dividends to its
b. Cannot continue business for which it was members, trustees, or officers, subject to the
established provisions of the Corporation Code on dissolution.
c. Can convey property to trustees for the (Sec. 86 – 87)
benefit of the stockholders/members,
creditors and other persons in interest Requisites:
i. Legal interest vests in 1. Does not have a capital stock divided into
business share
ii. Beneficial interest remains 2. No part of its income is distributable as
with stockholders/ members, dividends to its member
creditors 3. They must be formed or organized for
d. Assets distributable to unknown creditors, purposes specified in Sec. 87
stockholders/ members, persons in interest
Q: What are the purposes provided by law for
or those who cannot be found shall be
non-stock corporations?
escheated to the city or municipality where A: A non-stock corporation may be formed or
the assets are located. organized for the following purposes:
e. Distribution of assets only upon lawful a. Charitable,
dissolution and payment of all debts and b. Religious,
liabilities. c. Educational,
Exceptions: d. Professional,
a. Decrease of capital stock e. Cultural,
b. As otherwise allowed in the f. Recreation,
Corporation Code (Sec. 139) g. Fraternal,
h. Literary,
H. OTHER CORPORATIONS i. Scientific,
j. Social,
1. Close Corporations k. Civic Service,
l. Similar purposes, like trade, industry,
Q: What are the characteristics of a close agriculture and like chambers, or
corporation? m. Any combination of thereof (Sec. 87)
A: A close corporation, within the meaning of the
Corporation Code, is one whose articles of Q: What is the treatment of profits earned by a
incorporation provides that: non-stock corporation?
1. All the corporation's issued stock of all A: The mere fact that a non-stock corporation may
classes, exclusive of treasury shares, shall earn profit does not make it a profit-making

corporation, where such profit is used to carry out

Board appoints the Board appoints the
the purposes set forth in the Articles of Incorporation
officers officers. Members may
and is not distributed to its incorporators, members,
also directly elect
trustees, or officers. (SEC Opinion, 13 November
officers, unless
1990, XXIV SEC Quarterly Bulletin 63)
otherwise provided in
the articles of
STOCK (RCC, Sec. 3) NON-STOCK (RCC, incorporation of by-laws
Sec. 86-87)
Dissolution = corporation Dissolution =
Free transferability of Membership and all can no longer carry on its corporation can no
stocks rights arising therefrom business enterprise longer carry on its
are purely personal and operations as a
non-transferable corporation. If it does, it
(unless otherwise will only be deemed an
provided in the articles ordinary association
of incorporation) without juridical
personality
Incorporators may be any Juridical persons may
person, partnership, be members of a non-
NOTE: A stock corporation may be converted into a
association or stock corporation,
non-stock corporation by mere amendment of the
corporation (sec. 10) provided that they have
articles of incorporation. On the other hand, a non-
a representative for the
stock corporation must be dissolved first and
purposes of qualifying
thereafter, the members may organize the stock
them as incorporators
corporation. (See VILLANUEVA, PHILIPPINE
Non-voting stocks may Members may be CORPORATE LAW 901-902 (2013))
still vote on certain denied entirely of their
matters voting rights in the
articles of incorporation 3. Foreign Corporations
or by-laws
Q: What is a foreign corporation?
Proxy representation Proxy representation A: A corporation formed, organized or existing under
cannot be denied may be denied in any law other than those of the Philippines, and
articles of incorporation whose laws allow Filipino citizens and corporations
or by-laws to do business in its own country or state. (Sec. 140)
Delinquency of stock Right to vote or be voted Q: What are the bases of authority over foreign
automatically suspends upon is suspended only corporations?
the right to vote or be when the delinquent A: The following are the bases of authority over
voted upon stockholder is foreign corporations:
disenfranchised under 1. Consent - It is the voluntary surrender of
the articles of jurisdiction over its person in a pending suit before
incorporation or by-laws the host state (Salonga, Private International Law,
1979 ed., p.344).
Quorum is determined by Quorum is determined
the number of by the number of actual 2. “Doing Business” with regard to Foreign
outstanding voting stocks living members with Corporations - Continuity of commercial dealings
voting rights incident to prosecution of purpose and object of the
organization. Isolated, occasional or casual
Only cumulative voting GR: straight voting transactions do not amount to engaging in business.
EX: cumulative voting, But where the isolated act is not incidental/casual
only if in articles of but indicates the foreign corporation’s intention to do
incorporation or by-laws other business, said single act constitutes engaging
in business in the Philippines.
Must not be more than 15 Board of Trustees may
Board of Directors exceed 15 Q: What are the laws applicable to foreign
corporations?

A: A foreign corporation lawfully doing business in e. Maintaining a stock of goods in the

the Philippines shall be bound by all laws, rules and Philippines solely for the purpose of having
regulations applicable to domestic corporations of the same processed by another entity in the
the same class, except: Philippines;
1. those which provide for the creation, f. Consignment by a foreign entity of equipment
formation, organization or dissolution of with a local company to be used in the
corporations or processing of products for export;
2. those which fix the relations, liabilities, g. Collecting information in the Philippines; and
responsibilities, or duties of stockholders, h. Performing services auxiliary to an existing
members, or officers of corporations to isolated contract of sale which are not on a
each other or to the corporation. (Sec. 146) continuing basis, such as Installing in the
Philippine machinery it has manufactured or
a. What constitutes “Doing exported to the Philippines, servicing the
Business”
same, training domestic workers to operate it,
and similar incidental services. (IRR of FIA,
Q: What acts of a foreign corporation are
included in the phrase “doing business” in the Sec. 1)
Philippines?
A: The phrase “ “Doing Business” in the Philippines Q: What are the tests on whether a foreign
Includes: corporation is doing business in the
a. Soliciting orders, service contracts, opening Philippines?
offices, whether called “liaison” offices or A: The tests to determine whether a corporation is
doing business in the Philippines are:
branches;
a. Isolated Transactions Test: where a foreign
b. Appointing representatives or distributors
corporation needs to obtain a license and fails
domiciled in the Philippines;
to do so, whether it should be denied legal
c. Participating in the management,
standing to obtain remedies from local courts
supervision, or control of any domestic
and administrative agencies or not, depends
business, firm, entity, or corporation in the
therefore on the issue whether it will engage in
Philippines; and
business in the Philippines. Not every activity
d. Any other act or acts that imply a continuity of
undertaken in the Philippines amounts to doing
commercial dealings or arrangements, and
business as to require a foreign corporation to
contemplate to that extent the performance of
obtain such license.
acts or works, or the exercise of some of the
b. Twin Characterization Test (Mentholatum Co.
functions normally incident to, and in
Inc v. Mangaliman G.R. No. 47701, 1941)
progressive prosecution of, commercial gain
or of the purpose and object of the business
Substance Test: Consider the body or substance of
organization the business or the enterprise for which it was
ORGANIZED or whether it has substantially retired
Q: What acts of a foreign corporation are NOT from it and turned it over to another.
included in the phrase “doing business” in the
Philippines? Continuity Test: That doing business implies a
A: The Implementing Rules and Regulations (IRR) continuity of commercial dealings and
of the FIA recognizes the following as NOT arrangements and contemplates, to that extent, the
constituting “doing business” in the Philippines: performance of acts or works or the exercise of
a. Mere investment as a shareholder by a some of the functions normally incidental to, and in
foreign entity in domestic corporations duly progressive prosecution of, the purpose and object
registered to do business, and/or the of its organization.
exercise of rights as such investor;
b. Having a nominee director or officer to Taken together, DOING BUSINESS in the
represent its interests in such corporation; Philippines must cover transactions and series of
c. Appointing a representative or distributor transactions in pursuit of the main business goals of
domiciled in the Philippines which transacts the corporation and done with the intent to continue
business in its own name and for its own the same in the Philippines.
account;
c. Contract Test: if the salient points of a contract
d. The publication of a general advertisement
do not find themselves in the Philippines,
through any print or broadcast media;

Philippine authorities have no business pursue in the transaction of its

subjecting the parties to local registration and business in the Philippines: Provided,
licensing requirements (Pacific Vegetable Oil That said purpose or purposes are
Corp. v Singzon, G.R. No. 7917, 1955) those specifically stated in the
certificate of authority issued by the
b. Necessity of a License to Do appropriate government agency;
Business: f. The names and addresses of the
present directors and officers of the
Q: When is the consent to transact business in corporation;
the Philippines obtained by a foreign
g. A statement of its authorized capital
corporation?
A: A corporation shall have the right to transact stock and the aggregate number of
business in the Philippines after obtaining a license shares which the corporation has
for that purpose in accordance with the RCC and a authority to issue, itemized by class,
certificate of authority from the appropriate par value of shares, shares without par
government agency (Sec. 140) value, and series, if any;
h. A statement of its outstanding capital
Q: Why is there a necessity of a license to do stock and the aggregate number of
business in the Philippines? shares which the corporation has
A: The necessity of a license to do business in the issued, itemized by class, par value of
Philippines purpose is: shares, shares without par value, and
a. To place them under the jurisdiction of the series, if any;
courts i. A statement of the amount actually
b. To place them in the same footing as
paid in; and
domestic corporations
j. Such additional information as may be
c. Protection for the public in dealing with said
necessary or appropriate in order to
corporations.
enable the Commission to determine
whether such corporation is entitled to
c. Requisites for Issuance of License
a license to transact business in the
Q: What are the requisites for issuance of a Philippines, and to determine and
license? assess the fees payable.
A: A foreign corporation applying for a license to 3. The application shall be accompanied by the
transact business in the Philippines shall submit to following:
the SEC the following: a. A certificate under oath duly executed
1. A copy of its articles of incorporation and by the authorized official or officials of
bylaws, certified in accordance with law and the jurisdiction of its incorporation,
their translation to an official language of the attesting to the fact that the laws of the
Philippines, if necessary. country or State of the applicant allow
2. The application shall be under oath and shall Filipino citizens and corporations to do
specifically set forth the following: business therein, and that the applicant
a. The date and term of incorporation; is an existing corporation in good
b. The address, including the street standing. If the certificate is in a foreign
number, of the principal office of the language, a translation thereof in
corporation in the country or State of English under oath of the translator
incorporation; shall be attached to the application.
c. The name and address of its resident b. A statement under oath of the
agent authorized to accept summons president or any other person
and process in all legal proceedings authorized by the corporation, showing
and all notices affecting the to the satisfaction of the Commission
corporation, pending the establishment and when appropriate, other
of a local office; governmental agencies that the
d. The place in the Philippines where the applicant is solvent and in sound
corporation intends to operate; financial condition, setting forth the
e. The specific purpose or purposes assets and liabilities of the corporation
which the corporation intends to as of the date not exceeding one (1)

year immediately prior to the filing of A: Consent that service upon such resident agent
the application. shall be admitted and held as valid as if served upon
4. Foreign banking, financial, and insurance the duly authorized officers of the foreign
corporations shall, in addition to the above corporation at its home office.
requirements, comply with the provisions of a. Whenever such service of summons or
existing laws applicable to them. other process is made upon the SEC, it
5. In the case of all other foreign corporations, no must, within 10 days thereafter, transmit by
application for license to transact business in mail a copy of such summons or other legal
the Philippines shall be accepted by the process to the corporation at its home or
Commission without previous authority from the principal office. When SEC sends such
appropriate government agency, whenever copy, it shall constitute a necessary part of
required by law. (Sec. 142) and shall complete such service
b. In case of a change of address of the
Q: How may the articles of incorporation or by- resident agent, it shall be his or its duty to
laws of a foreign corporation be amended? immediately notify the SEC in writing. (Sec.
A: Sixty (60) days after the effectivity of the 145)
amendment of the articles of incorporation or bylaws
of a foreign corporation authorized to transact e. Personality to Sue and Suability
business in the Philippines, such foreign corporation
shall, file with the Commission, and in the proper Q: What are the principles on personality of a
cases, with the appropriate government agency, a foreign corporation to sue?
duly authenticated copy of the amended articles of A: The principles regarding the right of a foreign
incorporation or bylaws, indicating clearly in capital corporation to bring suit in the Philippine courts:
letters or underscoring the change or changes
made, duly certified by the authorized official or Every foreign corporation:
officials of the country or State of incorporation. ● Doing business in the Philippines with a license
may sue and can be sued in the Philippines
Such filing shall not in itself enlarge or alter the ● Doing business in the Philippines without a
purpose or purposes for which such corporation is
license cannot sue, but may be sued in the
authorized to transact business in the Philippines.
(Sec. 147) Philippines
● Not doing business in the Philippines, or on
d. Resident Agent isolated transactions may sue and can be sued
(if jurisdiction can be acquired)
Q: What is a resident agent?
A: A resident agent is a resident of the Philippines Q: What are the rules regarding a foreign
designated by the corporation, on whom summons corporation’s right to bring suit in the
and other legal processes may be served in all Philippines?
actions or other legal proceedings against such
corporation, and consenting that service upon such FOREIGN CORP CAN FC SUE IN PH?
resident agent shall be admitted and held as valid STATUS
as if served upon the duly authorized officers of the Doing business in Cannot sue before
foreign corporation at its home office (Sec. 145) Philippines without a Philippine courts
license
Q: Who may be a resident agent? Not doing business in Can sue before
A: The following could be a resident agent: the Philippines Philippine courts on an
a. Individual residing in the Philippines of isolated transaction or
good moral character and of sound on a cause of action
financial standing entirely independent
b. Domestic corporation lawfully transacting of any business
business in the Philippines, with a sound transaction
financial standing and must show proof that Doing business in the Can sue before
it is in good standing as certified by the SEC Philippines without a Philippine courts due
license, but Philippine to estoppel
(Sec. 144)
citizen or entity has
contracted with said
Q: How may service of process upon a foreign
corporation or derived
corporation be done through a resident agent?

benefits from the to intellectual property rights or the repression of

Foreign Corporation unfair competition, to which the Philippines is also a
party or extends reciprocal rights, may sue in
Doing business in the Can sue before trademark or service mark enforcement action
Philippines and has Philippine courts on (Sehwani Inc v. In-n-Out Burger, G.R. No. 171053,
the required license any transaction 2007).
Capability to Sue and Suability of Foreign f. Grounds for Revocation of License

Corporations W/N Doing Business
Q: What are the grounds for revocation of
DOING BUSINESS IN THE NOT DOING license to transact business in the Philippines?
PHILIPPINES BUSINESS IN A: Section 151 provides that the SEC may cancel
THE the certificate or license of a foreign corporation on
PHILIPPINES any of the following grounds:
LICENSED UNLICENSED ISOLATED a. Failure to file its annual report or pay any
TRANSACTIONS fees as required by Code;
b. Failure to appoint and maintain a resident
YES, can NO, cannot Yes, can sue;
agent;
sue sue;
EXC: if c. Failure to inform SEC of the change of
EXC: transactions resident agent or the latter’s change of
estoppel exhibits intent to address;
do business, d. Failure to submit a copy of amended
Foreign articles of incorporation or by- laws; or
Corporation articles of merger or consolidation;
needs license to e. A misrepresentation of any material
sue matters in reports;
YES, can YES, can be sued f. Failure to pay any and all taxes, imposts,
be sued assessments or penalties;
Qualifier: as long as summons g. Engaged in a business not authorized by
were properly served (to acquire
SEC;
jurisdiction)
h. Acting as a dummy of a foreign corporation
(Agilent Technologies v. Integrated Silicon, G.R. No.
154618, 2004) not licensed to do business in the
Philippines; or
Q: When may an unlicensed foreign corporation i. Any other ground as would render it unfit to
be allowed to sue transact business in the Philippines.
A: The following are the instances when an
unlicensed foreign corporation may be allowed to 4. One Person Corporations
sue:
a. Isolated transactions; Q: What is a one person corporation (OPC)?
b. Action to protect good name, goodwill, and A: A One Person Corporation is a corporation with
reputation of a foreign corporation; a single stockholder (Sec. 116)
c. The subject contracts provide that
Philippine Courts will be venue to Q: Who may form an OPC?
A: Only a natural person, trust or an estate may form
controversies;
an OPC (Sec. 116)
d. A license subsequently granted enables
the foreign corporation to sue on contracts Q: Who may NOT form an OPC?
executed before the grant of the license A: The following are not allowed to incorporate as
(Eriks Ltd. v. Court of Appeals, G.R. No. OPC:
118843, 1997); a. Banks,
e. Recovery of misdelivered property; b. Non-bank financial institutions,
f. Where the defendant is estopped. c. Quasi-banks,
d. Pre-need,
The Intellectual Property Code provides that any e. Trust,
foreign corporation not engaged in business in the f. Insurance public and publicly listed
Philippines and a national of a country which is a companies,
party to any convention, treaty or agreement relating g. Non-chartered GOCCs; and

h. Natural person who is licensed to exercise o A single stockholder who is

a profession may not organize an OPC for likewise the self-appointed
the purpose of exercising such a treasurer of the corporation shall:
profession. EXC: unless otherwise ▪ Give a bond to the SEC in
provided by special laws. (Sec. 116) such sum as may be
required
Q: What is the minimum capital stock o Undertake in writing to faithfully
requirement to form an OPC? administer the OPC’s dunds to be
A: General rule: No minimum authorized capital received as treasurer, and to
stock distribute and invest the same
Exception: as otherwise provided by special law according to the AOI as approved
(Sec. 177) by the SEC
o Renew the bond every 2 years or
Q: What is required in the AOI of an OPC? as often as may be required (Sec.
A: Requirements for filing the Articles of 122)
Incorporation: • Who and when to notify - Securities and
i. In accordance with Sec. 14 of the RCC. Exchange Commission (SEC)
ii. If the single stockholder is a trust or an o within five (5) days from
estate - the name, nationality, and appointment
residence of the trustee, administrator, o using the Appointment Form as
executor, guardian, conservator, custodian, may be prescribed by the SEC
or other person exercising fiduciary duties (SEC Memorandum 7-2019)
together with the proof of such authority to
act on behalf of the trust or estate Q: What are the special functions of the
iii. Name, nationality, residence of the corporate secretary?
nominee and alternate nominee, and the A: In addition to the functions designated by the One
extent, coverage and limitation of the Person Corporation, the corporate secretary shall:
authority. (Sec. 118) 1. Be responsible for maintaining the minutes
book and/or records of the corporation
NOTE: OPCs are NOT required to file their 2. Notify the nominee or alternate nominee of
corporate bylaws. (Sec. 119) the death or incapacity of the single
stockholder
Q: What must be included in the corporate name a. notice shall be given no later than
of an OPC? five (5) days from such occurrence
A: It should Indicate the letters “OPC” either below 3. Notify the SEC of the death of the single
or at the end of their corporate name. (Sec. 120) stockholder
a. within five (5) days from such
Q: What is the position of the single stockholder occurrence
of the OPC? b. state the names, residence
A: The single stockholder shall be the sole director addresses, and contact details of
and president of the One Person Corporation. (Sec. all known legal heirs
121) 4. Call the nominee or alternate nominee and
the known legal heirs to a meeting and
Q: What are the rules in appoint officers of an advise the legal heirs with regard to:
OPC? a. the election of a new director
A: The following are the rules in appointing officers b. amendment of the articles of
of an OPC” incorporation
• When to appoint officers - Within fifteen c. other ancillary and/or
(15) days from the issuance of its certificate consequential matters. (Sec. 123)
of incorporation (Sec. 122)
• Who to appoint – The treasurer, corporate Q: What is a nominee?
secretary, and other officers as may be A: A nominee/alternate nominee is:
deemed necessary 1. designated by a single stockholder
o The single stockholder may not be 2. in the event of the single stockholder’s
appointed as the corporate death or incapacity, nominee takes the
secretary place of the single stockholder as director
and shall manage the corporation’s affairs

3. written consent of both nominee and

alternate nominee (SEC Memorandum 7- Q: How may an OPC take action on any matter?
2019) – to be attached in the application of A: When action is needed on any matter, it shall be
incorporation sufficient to prepare a written resolution, signed and
a. may be withdrawn in writing any dated by the single stockholder, and recorded in the
time before the death or incapacity minutes book of the One Person Corporation. The
of the single stockholder date of recording in the minutes book shall be
4. may be changed at any time deemed to be the date of the meeting for all
a. by submitting to the SEC the purposes under this Code. (Sec. 128)
names of the new nominees and
their corresponding written Q: What is the obligation of a sole shareholder
consent claiming limited liability?
b. Articles of Incorporation need NOT A: A sole shareholder claiming limited liability has
be amended (SEC Memorandum the burden of affirmatively showing that:
7-2019) 1. the corporation was adequately financed.
2. the property of the One Person Corporation
Q: What is an alternate nominee? is independent of the stockholder’s
A: An alternate nominee is one who: Shall sit as personal property.
director and manage the One Person Corporation
in case of the nominee’s inability, incapacity, death, The principles of piercing the corporate veil applies
or refusal to discharge the functions as director and with equal force to One Person Corporations as with
manager of the corporation other corporations (Sec. 130)
Q: What shall be contained in articles of Q: How may an OPC be converted to an OPC and
incorporation with regard to the nominee and vice-versa?
alternate nominee?
A: The following shall be contained in the AOI: Conversion from an Ordinary Corporation to a
a. Names OPC (Sec. 131)
b. Residence addresses When a single stockholder acquires all the stocks of
c. Contact details an ordinary stock corporation, the latter may apply
d. Extent and limitations of their authority in for conversion into a OPC, subject to the submission
managing the affairs of the One Person of such documents as the SEC may require. If the
Corporation. application for conversion is approved, the SEC
shall issue certificate of filing of amended articles of
Q: What is the term of officer of a nominee and incorporation reflecting the conversion.
alternate nominee?
A: The term of the nominee/alternate nominee Conversion from an OPC to an Ordinary Stock
depends upon incapacity of the single stockholder: Corporation (Sec. 132)
1. Temporary - until the stockholder, by self A One Person Corporation may be converted into
determination, regains the capacity to assume an ordinary stock corporation after due notice to the
such duties. SEC of such fact and of the circumstances leading
2. Death or Permanent - until the legal heirs of the to the conversion, and after compliance with all
single stockholder have been lawfully other requirements for stock corporations under this
determined, and the heirs have designated one Code and applicable rules. Such notice shall be filed
of them or have agreed that the estate shall be with the SEC within sixty (60) days from the
the single stockholder of the One Person occurrence of the circumstances leading to the
Corporation conversion into an ordinary stock corporation. If all
requirements have been complied with, the SEC
NOTE: The alternate nominee shall serve for the shall issue an amended certificate of incorporation
same term and under the same conditions reflecting the conversion.
applicable to the nominee
In case of death of the single stockholder, the
Q: What is included in the minutes and nominee or alternate nominee shall transfer the
records of an OPC? shares to the duly designated legal heir or estate
A: A One Person Corporation shall maintain a within seven (7) days from receipt of either an
minutes book which shall contain all actions, affidavit of heirship or self- adjudication executed by
decisions, and resolutions taken by the One Person a sole heir, or any other legal document declaring
Corporation. (Sec. 127) the legal heirs of the single stockholder and notify

the SEC of the transfer. Within sixty (60) days from b. The terms of the merger or
the transfer of the shares, the legal heirs shall notify consolidation and the mode of carrying
the SEC of their decision to either wind up and the same into effect;
dissolve the One Person Corporation or convert it c. A statement of the changes, if any, in
into an ordinary stock corporation. the articles of incorporation of the
surviving corporation in case of
NOTE: The Converted Corporations shall succeed
merger; and, in case of consolidation,
the former corporation and be legally responsible for
all the statements required to be set
all the latter’s outstanding liabilities as of
forth in the articles of incorporation for
corporations organized under this
I. MERGERS AND CONSOLIDATIONS Code; and
d. Such other provisions with respect to
1. Concept the proposed merger or consolidation
as are deemed necessary or desirable.
Q: What is a merger?
A: A union whereby one or more existing STEP 2: Board Approval (Sec. 75)
corporations are absorbed by another corporation The plan of merger or consolidation shall be
that survives and continues the combined business approved by majority vote of each of the boards of
(Villanueva, 2018). the corporations involved at separate meetings;
Q: What is consolidation? STEP 3: Stockholders’ or Members’ Approval (Sec.

A: The union of two or more existing corporations. 76)
A new corporation is created, and consolidating 1. Notice of such meeting should be given to
corporations are extinguished. (PNB v. Andrada all stockholders or members at least 1 week
Electric & Engineering Co., G.R. No. 142936, [April before the meeting.
17, 2002], 430 PHIL 882-903) 2. The plan has to be approved by a vote of
stockholders representing ⅔ of the
Q: Differentiate a merger from a consolidation outstanding capital stock, if a stock
A: The following are the differences: corporation, or ⅔ of the members of the
non- stock corporation.
MERGER CONSOLIDATION
3. Dissenting stockholders may exercise their
A corporation A NEW corporation is
right of appraisal. However, if the board
ABSORBS another created, and
abandons the plan, such right is
corporation and constituent
REMAINS IN corporations are extinguished.
EXISTENCE while the EXTINGUISHED. 4. Any amendment to the plan must be
other is DISSOLVED approved by the same votes of the board
members or trustees and stockholders or
The power to merge or consolidate is not within the members required for the original plan.
inherent powers of the corporation. Therefore, it
must be expressly granted by law. STEP 4: Articles of Merger or Consolidation (Sec.
77)
Merger or consolidation does not become effective Once the required number of stockholders or
by mere agreement of the constituent corporations. members approved of the plan, Articles of Merger or
The approval of the SEC is required (PNB v. Articles of Consolidation shall be executed by each
Andrada Electric & Engr. Co., Inc., G.R. No. 142936, of the constituent corporations, to be signed by the
2002) president or vice-president and certified by the
secretary or assistant secretary of each corporation,
Q: What is the procedure of merger or setting forth:
consolidation? a. The plan of the merger or the plan of
A: STEP 1: Drawing up of the Plan of Merger or consolidation;
Consolidation (Sec. 75) b. As to stock corporations, the number of
The board of constituent corporations shall draw up shares outstanding, or in the case of
a plan of merger or consolidation. It shall contain the non-stock corporations, the number of
following: members;
a. The names of the constituent
corporations;

c. As to each corporation, the number of

shares or members voting for or against Q: What shall the articles of merger o
such plan, respectively; consolidation contain?
d. The carrying amounts and fair values of A: The articles must be signed by the president or
the assets and liabilities of the vice president and certified by the secretary or
respective companies as of the agreed assistant secretary setting forth:
i. The plan of the merger or the plan of
cut-off date;
consolidation;
e. The method to be used in the merger or
ii. As to stock corporations, the number of
consolidation of accounts of the
shares outstanding, or in the case of
companies;
non-stock corporations, the number of
f. The provisional or pro-forma values, as
members;
merged or consolidated, using the
iii. As to each corporation, the number of
accounting method; and
shares or members voting for or
g. Such other information as may be
against such plan, respectively;
prescribed by the SEC.
iv. The carrying amounts and fair values
STEP 5: Approval by the SEC of the assets and liabilities of the
The Articles of Merger or Articles of Consolidation respective companies as of the agreed
shall be submitted to the SEC for approval. cut-off date;
However, in the case of special corporations, like v. The method to be used in the merger
banks, insurance companies, building and loan or consolidation of accounts of the
associations, etc., the favorable recommendation of companies;
the appropriate government agency shall first be vi. The provisional or pro-forma values, as
obtained. merged or consolidated, using the
1. If the SEC is satisfied that the merger or accounting method; and
consolidation of the corporations vii. Such other information as may be
concerned is legal, it shall issue a certificate prescribed by the SEC. (Sec. 78)
of merger or of consolidation, at which time
the merger or consolidation shall be
effective. 2. Effects and Limitations of Merger
2. If the SEC is not satisfied, it shall set a and Consolidation
hearing to give the corporations concerned
the opportunity to be heard. Written notice Q: When foes a merger of consolidation become
of the date, time and place of hearing shall effective?
be given to each constituent corporation at A: A merger does not become effective upon the
least two (2) weeks before said hearing. mere agreement of the constituent corporations, but
open approval of the articles of merger by the SEC
Q: What shall a plan of merger or consolidation issuing the certificate of merger as required by
contain? Section 79 of the Corporation Code (Bank of
A: The plan of merger or consolidation shall set forth Commerce v. Heirs of Rodolfo dela Cruz).
the ff:
1) The names of the constituent corporations; Q: What are the effects of merger or
2) The terms of the merger or consolidation consolidation?
and the mode of carrying the same into A: The effects of merger or consolidation are the
following:
effect;
1. Constituent corporations become a single
3) A statement of the changes, if any, in the
corporation
articles of incorporation of the surviving
a. Merger: surviving corporation
corporation in case of merger; and, in case
b. Consolidation: consolidated
of consolidation, all the statements required
corporation under
to be set forth in the articles of incorporation
the plan of
for corporations organized under this Code;
consolidation
and
2. Separate existence of constituent
4) Such other provisions with respect to the
corporations cease EXCEPT that of the
proposed merger or consolidation as are
surviving or consolidated corporation
deemed necessary or desirable. (Sec. 75)

3. Surviving or consolidated corporation Parties to a merger or acquisition agreement without

possesses the rights privileges immunities; complying with the thresholds are prohibited from
and powers and is subject to all duties and consummating their agreement until thirty (30) days
liabilities of a corporation organized under after providing notification to the Commission in the
this Code form and containing the information specified in the
4. ALL of the following are deemed regulations issued by the Commission. A
transaction that meets the thresholds and does not
transferred to and vested in such surviving
comply with the notification requirements and
or consolidated corporation: (BY
waiting periods set out in Section 5 shall be
OPERATION OF LAW) considered void and will subject the parties to an
a. Rights administrative fine of one percent (1%) to five
b. Privileges percent (5%) of the value of the transaction. (Sec.
c. Immunities 17 of R.A. no. 10667; PCA Rule 4, as amended by
d. Franchises of each constituent PCC Resolution No. 02-2020)
corporation
e. Real or personal property —end of topic—
f. Receivables due on whatever
account (hence
surviving/consolidated corporation
has the power to file an action for
recovery) including:
i. subscriptions to shares
and other choses in action
ii. and every other interest
of, belonging to, or due to
each constituent
corporation
5. Regarding liabilities and pending claims:
a. Liabilities and obligations of each
constituent corporation:
i. Surviving or consolidated
corporation shall be
responsible
b. Pending claim, action or
proceeding brought by or against
any constituent corporation
i. may be prosecuted by or
against the surviving or
consolidated corporation
c. The rights of creditors or liens
upon the property of such
constituent corporations are not
impaired
d. Employee contracts
Q: What are the limitations on mergers and

acquisitions under the Philippine Competition
Act (PCA)?
A: Under the Philippine Competition Act (R.A. no.
10667), the Philippine Competition Commission can
review the mergers and acquisitions of a
corporation/s based on the factors it deems to be
relevant. (Sec. 16 of R.A. no. 10667)

2. transforms an article from one state to

IV. INTELLECTUAL PROPERTY
another, then it may be patentable.
A. PATENTS Q: How long is the term of a patent?

A: The term of a patent shall be 20 years from the
Q: What are Patentable Inventions? filing date of the application. (Sec. 54, IP Code)
A: Any technical solution of a problem in any field of
human activity which is: Q: Who owns the rights to a patent?
(a) new, involves an A: The right to a patent belongs to the inventor, his
(b) inventive step and is heirs, or assigns. When two (2) or more persons
(c) industrially applicable shall be patentable. have jointly made an invention, the right to a patent
shall belong to them jointly. (Sec. 28, IP Code)
It may be, or may relate to:
(a) a product, or Q: What is the First-to-File Rule?
(b) process, or an A: If two (2) or more persons have made the
(c) improvement of any of the foregoing. (Sec. invention separately and independently of each
21, IP Code) other, the right to the patent shall belong to the
person who filed an application for such invention,
Q: What are Non-Patentable Inventions? or where two or more applications are filed for the
A: same invention, to the applicant who has the earliest
1. Discoveries, scientific theories and filing date or the earliest priority date. (Sec. 29, IP
mathematical methods. Code)
2. Schemes, rules and methods of performing
mental acts, playing games or doing Q: If an employee made an invention in the
business and program for computers. course of his regular employment, who shall the
3. Methods for human or animal treatment by patent belong to?
surgery or therapy and diagnostic methods A:
practiced on the human or animal body. 1. The employee, the inventive activity is not
4. Plant varieties or animal breeds or part of his regular duties (even if the
biological process for the production of employee uses the time, facilities, and
plants or animals. materials of the employer);
5. Aesthetic creations; and 2. The employer, if the invention is the result
6. Anything contrary to public order or of the performance of the employee’s
morality. (Sec. 22, IP Code) regular duties UNLESS there is an
agreement to the contrary.
Q: Who is a Person Skilled In The Art?
A: A hypothetical person presumed to be an Q: What are the grounds for the cancellation of
ordinary practitioner aware of what was common a patent?
general knowledge in the art at the relevant date. He A: Any interested person may, upon payment of the
or she is also presumed to have: required fee, petition to cancel the patent or any
1. knowledge of all references that are sufficiently claim thereof, or parts of the claim, on any of the
related to one another and to the pertinent art; following grounds:
2. knowledge of all arts reasonably pertinent to the 1. That what is claimed as the invention is not
particular problems with which the inventor was new or patentable;
involved; and 2. That the patent does not disclose the
3. normal means and capacity for routine work and invention in a manner sufficiently clear and
experimentation at his or her disposal. (Sec. complete for it to be carried out by any
26.2, IP Code) person skilled in the art; or
3. That the patent is contrary to public order or
Q: Are computer programs subject to morality.
Intellectual Property rights?
A: The general rule is that computer programs are Q: What is patent infringement?
subjects of copyright. In addition, the machine or A: Consists of the following acts:
article described below may be patentable if the (1) making, using, offering for sale, selling, or
computer program: importing a patented product or a product
1. is implemented by a particular machine in a obtained directly or indirectly from a
non-conventional and non-trivial manner, patented process; or
or

(2) use of a patented process without the B. TRADEMARKS

authorization of the patentee constitutes
patent infringement. Q: What is the difference between a Mark,
Collective Mark and a Trade Name?
Q: Can there be patent infringement when a
patent has not been issued yet? MARK Any visible sign capable of:
A: No. There can be no infringement of a patent until a. distinguishing the
a patent has been issued, since whatever right one goods (trademark)
has to the invention covered by the patent arises or services
alone from the grant of patent. (Creser Precision (service mark) of
Systems, Inc. v. Court of Appeals, G.R. No. 118708, an enterprise and
1998) b. shall include a
stamped or
However: The exclusive right of a patentee to make, marked container
use and sell a patented product, article or process of goods. (Sec.
exists only during the term of the patent. (Phil 121.1, IP Code)
Pharmawealth, Inc. v. Pfizer, Inc., G.R. No. 167715, COLLECTIVE Any visible sign designated as
2010) MARK such in the application for
registration and capable of
Q: What are the two tests of patent distinguishing the origin or any
infringement? other common characteristic,
A: The two tests of patent infringement are (1) including the quality of goods or
Literal Infringement and (2) Doctrine of Equivalents. services of different enterprises
which use the sign under the
In the Literal Infringement test, Resort must be had control of the registered owner
to the words of the claim. If accused matter clearly of the collective mark. (Sec.
falls within the claim, then there is literal 121.2, IP Code)
infringement. TRADE Any name or designation
NAME identifying or distinguishing an
To determine whether the particular item falls within enterprise (Sec. 121.3, IP
the literal meaning of the patent claims, the Court Code);
a. Compares the claims of the patent and the
accused product within the overall context
of the claims and specifications, and Q: How are rights of a mark acquired?
b. Determines whether there is exact identity A: The rights in a mark shall be acquired through
of all material elements. (Godines v. Court registration made validly in accordance with the
of Appeals, G.R. No. 97343, 1993) provisions of this law. (Zuneca Pharmaceutical v.
Natrapharm, Inc., G.R. No. 211850, 2020)
While in the Doctrine of Equivalents, this occurs
when a device appropriates a prior invention by Q: What is the Doctrine of Secondary Meaning?
incorporating its innovative concept and, albeit with A: A word or phrase originally incapable of exclusive
some modification and change, performs appropriation with reference to an article in the
substantially the same function in substantially the market (because it is geographically or otherwise
same way to achieve substantially the same result. descriptive) might nevertheless have been used for
(Smith Kline Beckman Corp. v. Court of Appeals, so long and so exclusively by one producer with
G.R. No. 126627, 2003) reference to his article that, in the trade and to that
branch of the purchasing public, the word or phrase
Q: May a foreign national bring an infringement has come to mean that the article was his property.
action in the Philippines? (Pearl & Dean (Phil.) v. Shoemart, G.R. No. 148222,
A: Any foreign national or juridical entity who meets 2003)
the requirements of Section 3 (Rule on Reciprocity)
and not engaged in business in the Philippines, to Q: How long is the duration of a certificate of
which a patent has been granted or assigned under Trademark registration?
this Act, may bring an action for infringement of A: A certificate of registration shall remain in force
patent, whether or not it is licensed to do business for 10 years: Provided, That the registrant shall file
in the Philippines under existing law. (Sec. 77, IP a declaration of actual use and evidence to that
Code). effect, or shall show valid reasons based on the
existence of obstacles to such use, as prescribed by

the Regulations, within 1 year from the fifth geographical origin of the goods or
anniversary of the date of the registration of the services;
mark. Otherwise, the mark shall be removed from h. Consists exclusively of signs that are
the Register by the Office. generic for the goods or services that they
seek to identify;
A certificate of registration may be renewed for i. Consists exclusively of signs or of
periods of 10 years at its expiration upon payment indications that have become customary or
of the prescribed fee and upon filing of a request. usual to designate the goods or services in
everyday language or in bona fide and
Q: What are Non-Registrable Marks? established trade practice;
A: A mark cannot be registered if it: j. Consists exclusively of signs or of
a. Consists of immoral, deceptive or indications that may serve in trade to
scandalous matter, or matter which may designate the kind, quality, quantity,
disparage or falsely suggest a connection intended purpose, value, geographical
with persons, living or dead, institutions, origin, time or production of the goods or
beliefs, or national symbols, or bring them rendering of the services, or other
into contempt or disrepute; characteristics of the goods or services;
b. Consists of the flag or coat of arms or other k. Consists of shapes that may be
insignia of the Philippines or any of its necessitated by technical factors or by the
political subdivisions, or of any foreign nature of the goods themselves or factors
nation, or any simulation thereof; that affect their intrinsic value;
c. Consists of a name, portrait or signature l. Consists of color alone, unless defined by
identifying a particular living individual a given form; or
except by his written consent, or the name, m. Is contrary to public order or morality. (Sec.
signature, or portrait of a deceased 123.1, IP Code)
President of the Philippines, during the life
of his widow, if any, except by written Q: What is the concept of Actual Use?
consent of the widow; A: Within 3 years from the filing date of the
application, the applicant or the registrant shall file a
d. Is identical with a registered mark declaration of actual use of the mark with evidence
belonging to a different proprietor or a mark to that effect. Failure to do so shall result to a refusal
with an earlier filing or priority date, in of the application or removal of the mark from the
respect of: Register by the Director. (Section 124.2, IP Code)
i. The same goods or services, or The most convincing proof of use of a mark in
ii. Closely related goods or services, commerce is testimony of such witnesses as
or customers, or the orders of buyers during a certain
iii. If it nearly resembles such a mark period. (Converse Rubber Corporation v. Universal
as to be likely to deceive or cause Rubber Products, 147 SCRA 154, 1987)
confusion;
e. Is identical with, or confusingly similar to, or Q: What is the effect of a Trademark
constitutes a translation of a mark which is Registration?
considered by the competent authority of A: Registration is only an administrative
the Philippines to be well-known confirmation of the existence of the right of
internationally and in the Philippines, ownership of the mark, but does not perfect such
whether or not it is registered here, as being right; actual use thereof is the perfecting ingredient.
already the mark of a person other than the The registration of a trademark unaccompanied by
applicant for registration, and used for actual use thereof in the country accords the
identical or similar goods or services; registrant only the standing to sue for infringement
f. Is identical with, or confusingly similar to, or in Philippine courts. (Philip Morris v. Fortune
constitutes a translation of a mark Tobacco, G.R. No. 91332, 1993)
considered well-known in accordance with
the preceding paragraph, which is Q: What are well-known marks?
registered in the Philippines with respect to A: The countries of the Union undertake, ex officio
goods or services which are not similar to if their legislation so permits, or at the request of an
those with respect to which registration is interested party, to refuse or to cancel the
applied for. registration, and to prohibit the use, of a trademark
g. Is likely to mislead the public, particularly as which constitutes a reproduction, an imitation, or a
to the nature, quality, characteristics or translation, liable to create confusion, of a mark

considered by the competent authority of the of each particular case. (Philip Morris, Inc. v.
country of registration or use to be well known in that Fortune Tobacco Corp., G.R. No. 158589, 2006
country as being already the mark of a person
entitled to the benefits of this Convention and used To establish trademark infringement, the following
for identical or similar goods. These provisions shall elements must be shown:
also apply when the essential part of the mark i. The validity of plaintiff’s mark;
constitutes a reproduction of any such well-known ii. The plaintiff’s ownership of the mark;
mark or an imitation liable to create confusion and
therewith. (Art. 6bis, Paris Convention) iii. The use of the mark or its colorable
imitation by the alleged infringer results
Q: What are the exclusive rights of an owner of in “likelihood of confusion.”
a registered mark? (McDonald's Corp. v. L.C. Big Mak
A: The owner of a registered mark shall have the Burger, Inc., G.R. No. 143993, 2004)
exclusive right:
1. to prevent all third parties not having the Q: What is the Test to determine Likelihood of
owner’s consent Confusion?
2. from using in the course of trade identical A: The test to determine “Likelihood of confusion” is
or similar signs or containers for goods or the use of the dominancy test. The dominancy test
services which are identical or similar to focuses on the similarities of the prevalent features
those in respect of which the trademark is of the competing trademarks that might cause
registered confusion of deception. (Mcdonald’s v. Big Mak,
3. where such use would result in a likelihood G.R. No. 143993, 2004)
of confusion. (Sec. 147.1, IP Code)
NOTE: The Holistic Test in determining
Q: How may a person be liable for trademark resemblance of marks has been abandoned. (Kolin
infringement? v.Kolin, G.R. No. 228165, 2021)
A: A person shall be liable for trademark
infringement if, without the consent of the owner of Q: What are the limitations to Actions for
the registered mark, he: Infringement?
i. Uses in commerce any reproduction or A:
colorable imitation of a registered mark 1. A registered mark shall have no effect
or the same container or a dominant against any person who, in good faith,
feature thereof in connection with the before the filing date or the priority date,
sale, offering for sale, distribution, was using the mark for the purposes of his
advertising of any goods or services business or enterprise. (Zuneca v.
which is likely to cause confusion, or to Natrapharm, G.R. No. 211850, 2020 -
cause mistake, or to deceive; wherein the SC held that the first to file rule
ii. Reproduces or colorably imitates a shall prevail against a user of a mark in
registered mark or a dominant feature good faith.)
thereof and applies such reproduction 2. Where an infringer who is engaged solely
or colorable imitation to signs, in the business of printing the mark or other
packages, or advertisements intended infringing materials for others is an innocent
to be used in commerce upon or in infringer, the owner of the right infringed
connection with the sale, offering for shall be entitled as against such infringer
sale, distribution, or advertising of only to an injunction against future printing.
goods or services which likely to cause 3. Where the infringement complained of is
confusion, or to cause mistake, or to contained in or is part of paid advertisement
deceive. (Sec. 155, IP Code) in a periodical or in an electronic
communication, the remedies of the owner
Q: What is “likelihood of confusion” in of the right infringed as against the
trademark infringement? publisher or distributor of periodical or
A: The “likelihood of confusion” is the gravamen of electronic communication shall be limited to
trademark infringement. But likelihood of confusion an injunction against the presentation of
is a relative concept, the particular, and sometimes such advertising matter in future issues.
peculiar, circumstances of each case being 4. There shall be no infringement of
determinative of its existence. Thus, in trademark trademarks or tradenames of imported or
infringement cases, more than in other kinds of sold drugs and medicines as well as
litigation, precedents must be evaluated in the light imported or sold off-patent drugs and

medicines PROVIDED, the marks v) Musical compositions, with or without

appearing thereon have been registered words;
marks that have not been tampered or vi) Works of drawing, painting,
unlawfully modified. architecture, sculpture, engraving,
lithography or other works of art;
Q: What is the difference between Trademark models or designs for works of art;
infringement v. Unfair Competition? vii) Original ornamental designs or models
A: The law on unfair competition is broader and for articles of manufacture, whether or
more inclusive than the law on trademark not registrable as an industrial design,
infringement. Trademark infringement is more and other works of applied art;
limited, but it recognizes a more exclusive right viii) Illustrations, maps, plans, sketches,
derived from the trademark adoption and charts and three-dimensional works
registration by the person whose goods or business relative to geography, topography,
is first associated with it. The law on trademarks is a architecture or science;
specialized subject distinct from the law on unfair ix) Drawings or plastic works of a scientific
competition, although the two subjects are entwined or technical character;
with each other and are dealt with together in the IP x) Photographic works including works
Code. produced by a process analogous to
photography; lantern slides;
Hence, even if one fails to establish his exclusive xi) Audiovisual works and
property right to a trademark, he may still obtain cinematographic works and works
relief on the ground of his competitor's unfairness or produced by a process analogous to
fraud. Conduct constitutes unfair competition if the cinematography or any process for
effect is to pass off on the public the goods of one making audio-visual recordings;
man as the goods of another. It is not necessary that xii) Pictorial illustrations and
any particular means should be used to this end. advertisements;
(Mighty Corp. v. E. & J. Gallo Winery, G.R. No. xiii) Computer programs; and
154342, 2004) xiv) Other literary, scholarly, scientific and
artistic works. (Sec. 172.1, IP Code)
C. COPYRIGHT b) Derivative Works
i) Dramatizations, translations,
Q: When is copyright for a work acquired? adaptations, abridgments,
A: The copyright for a work is acquired by an arrangements, and other alterations of
intellectual creator from the moment of creation literary or artistic works; and
even in the absence of registration and deposit ii) Collections of literary, scholarly or
(Columbia Pictures v. CA, G.R. No. 110318, 1996) artistic works, and compilations of data
and other materials which are original
Q: Who is an author? by reason of the selection or
A: An author is “he to whom anything owes its origin; coordination or arrangement of their
originator; maker; one who completes a work of contents. (Sec. 173.1, IP Code)
science or literature.” (Burrow-Giles Lithographic
Company v. Sarony, 111 U.S. 53, 1884) Q: What are non-copyrightable works?
A: No protection shall extend to any:
1. Idea, procedure, system, method or
Q: What are copyrightable works? operation, concept, principle, discovery or
a) Original Literary or Artistic Works mere data
i) Books, pamphlets, articles and other 2. News of the day and other miscellaneous
writings; facts having the character of mere items of
i) Periodicals and newspapers; press information; or
ii) Lectures, sermons, addresses, 3. Official text of a legislative, administrative
dissertations prepared for oral delivery, or legal nature, as well as any official
whether or not reduced in writing or translation thereof. (Sec. 175, IP Code)
other material form;
iii) Letters; Q: What are the rights conferred by a copyright?
iv) Dramatic or dramatico-musical A: Copyright or economic rights shall consist of the
compositions; choreographic works or exclusive right to carry out, authorize or prevent the
entertainment in dumb shows; following acts:

i. Reproduction of the work or substantial an agreement, express or

portion of the work; implied, to the contrary
ii. Dramatization, translation, adaptation, Ownership of the work belongs
abridgment, arrangement or other to the person other than the
transformation of the work; employer who commissioned
iii. The first public distribution of the original Independent the work and who pays for it.
and each copy of the work by sale or other Contractor’s
forms of transfer of ownership; Work Copyright remains with the
iv. Rental of the original or a copy of an creator, unless there is a
audiovisual or cinematographic work, a written stipulation to the
work embodied in a sound recording, a contrary.
computer program, a compilation of data • Copyright belongs to the
and other materials or a musical work in producer, the author of the
graphic form, irrespective of the ownership scenario, the composer of
of the original or the copy which is the the music, the film
subject of the rental; director, and the author of
v. Public display of the original or a copy of the work so adapted.
the work; • The producer shall
vi. Public performance of the work; and exercise the copyright to
vii. Other communication to the public of the Audiovisual an extent required for the
work, e.g. online/Internet. Work exhibition of the work in
any manner.
Q: What are the rules of ownership of a
copyright? Exception: Right to collect
performing license fees for the
TYPE OF performance of musical
OWNERSHIP
WORK compositions, with or without
Original words, which are incorporated
Copyright belongs to the
Literary and into the work
author of the work.
Artistic Works Copyright belongs to the writer
• Co-authors shall be the subject to the provisions of
original owners of the Article 723 of the Civil Code
copyright. wherein it provides that the
Letters
• In the absence of court may authorize their
agreement, rights shall be publication or dissemination if
governed by the rules on the public good or the interest
co-ownership. of justice so requires.
Joint
Authorship NOTE: If a work of joint Q: What is the doctrine on fair use?
authorship consists of parts A: Fair use is a privilege to use the copyrighted
that can be used separately material in a reasonable manner without the consent
and the author of each part of the copyright owner or as copying the theme or
can be identified, the author of ideas rather than their expression. Fair use is an
each part shall be the original exception to the copyright owner’s monopoly of the
owner of the copyright in the use of the work to avoid stifling the very creativity
part that he has created. which that law is designed to foster. (ABS-CBN
Copyright shall belong to: Corp. v. Gozon, G.R. No. 195956, 2015)
1. Employee: creation of the
object of copyright is not a Q: How is copyright infringement committed?
part of his regular duties A: IP Code when one:
even if the employee uses a. Directly commits an infringement (direct
Employee’s
the time, facilities and infringement);
Work
materials of the employer. b. Benefits from the infringing activity of
2. Employer: work is the another person who commits an
result of the performance infringement if the person benefiting has
of his regularly-assigned been given notice of the infringing activity
duties, UNLESS there is and has the right and ability to control the

activities of the other person (vicarious

infringement); or
c. With knowledge of infringing activity,
induces, causes or materially contributes to
the infringing conduct of another (direct
infringement). (Sec. 216, IP Code)
Also includes the act of any person who at the time

when copyright subsists in a work has in his
possession an article which he known, or ought to
know, to be an infringing copy of the work for the
purpose of:
a. Selling, letting for hire, or by way of trade
offering or exposing for sale, or hire, the
article
b. Distributing the article for purpose of trade,
or for any other purpose to an extent that
will prejudice the rights of the copyright
owner in the work; or
c. Trade exhibit of the article in public. (Sec.
217.3, IP Code)
Q: What is gravamen of Copyright Infringement?

A: The gravamen of copyright infringement is not
merely the unauthorized “manufacturing” of
intellectual works but rather the unauthorized
performance of any of the acts covered by Sec. 177
(economic rights). Hence, any person who performs
any of the acts thereunder without obtaining the
copyright owner’s prior consent renders himself
civilly and criminally liable for copyright
infringement. (NBI - Microsoft Corp. v. Hwang, G.R.
No. 147043, 2005)
—end of topic—

acting as (or arranging for another person

V. ANTI-MONEY LAUNDERING ACT (R.A.
to act as) a director or corporate secretary
9160, AS AMENDED)
of a company, a partner of a partnership,
or a similar position in relation to other
A. COVERED INSITUTIONS AND THEIR juridical persons; (iii) providing a
OBLIGATIONS registered office, business address or
accommodation, correspondence or
Q: What is money laundering? administrative address for a company, a
A: Money laundering is a crime whereby the
partnership or any other legal person or
proceeds of an unlawful activity are transacted,
thereby making them appear to have originated arrangement; and (iv) acting as (or
from legitimate sources. arranging for another person to act as) a
nominee shareholder for another person;
and
Q: What are the covered institutions under the 7. persons who provide any of the following
AMLA? services: (i) managing of client money,
A: The following are covered institutions under the securities or other assets; (ii) management
AMLA:
of bank, savings or securities accounts;
1. banks, non-banks, quasi-banks, trust
(iii) organization of contributions for the
entities, and all other institutions and their
creation, operation or management of
subsidiaries and affiliates supervised or
companies; and (iv) creation, operation or
regulated by the Bangko Sentral ng
management of juridical persons or
Pilipinas (BSP);
arrangements, and buying and selling
2. Insurance companies and all other
business entities. (Sec. 1, RA 10365)
institutions supervised or regulated by the
Insurance Commission; Q: Who are excluded from the definition of
3. (i) securities dealers, brokers, salesmen, covered persons?
investment houses and other similar A: The term ‘covered persons’ shall exclude
entities managing securities or rendering lawyers and accountants acting as independent
services as investment agent, advisor, or legal professionals in relation to information
consultant, (ii) mutual funds, close and concerning their clients or where disclosure of
investment companies, common trust information would compromise client confidences
funds, pre-need companies and other or the attorney-client relationship: Provided, that
these lawyers and accountants are authorized to
similar entities, (iii) foreign exchange
practice in the Philippines and shall continue to be
corporations, money changers, money subject to the provisions of their respective codes
payment, remittance, and transfer of conduct and/or professional responsibility or any
companies and other similar entities, and of its amendments.
(iv) other entities administering or
otherwise dealing in currency, B. COVERED AND SUSPICOUS
commodities or financial derivatives based TRANSACTIONS
thereon, valuable objects, cash substitutes
and other similar monetary instruments or Q: What are the unlawful activities under the
property supervised or regulated by AMLA?
Securities and Exchange Commission; A: Unlawful activities refer to any act or omission or
4. Jewelry dealers in precious metals, who, series or combination thereof involving or having
as a business, trade in precious metals, relation to the following:
for transactions in excess of a. Kidnapping for ransom under RPC, as
P1,000,000.00; amended;
5. jewelry dealers in precious stones, who, b. Sections 4, 5, 6, 8, 9, 10, 11, 12, 13, 14, 15
as a business, trade in precious stones, and 16 of RA 9165 or the Comprehensive
for transactions in excess of Dangerous Drugs Act of 2002;
P1,000,000.00; c. Section 3 paragraphs B, C, E, G, H and I of
6. company service providers which, as a RA 3019, as amended, or the Anti-Graft
business, provide any of the following and Corrupt Practices Act;
services to third parties: (i) acting as a d. Plunder under RA 7080, as amended;
formation agent of juridical persons; (ii)

e. Robbery and extortion under Articles 294, x. Violation of Section 7(b) of RA 9072, or the
295, 296, 299, 300, 301 and 302 of the National Caves and Cave Resources
RPC, as amended; Management Protection Act;
f. Jueteng and Masiao punished as illegal y. Violation of RA 6539, or the Anti-
gambling under PD 1602; Carnapping Act of 2002, as amended;
g. Piracy on the high seas under RPC, as z. Violations of Sections 1, 3 and 5 of PD
amended and PD 532; 1866, as amended, or the decree Codifying
h. Qualified theft under Article 310 of the RPC, the Laws on Illegal/Unlawful Possession,
as amended; Manufacture, Dealing In, Acquisition or
i. Swindling under Article 315 and Other Disposition of Firearms, Ammunition or
Forms of Swindling under Article 316 of the Explosives;
RPC, as amended; aa. Violation of PD 1612, otherwise known as
j. Smuggling under RA 455 and RA 1937; the Anti-Fencing Law;
k. Violations of RA 8792 or the Electronic bb. Violation of Section 6 of RA 8042, or the
Commerce Act of 2000; Migrant Workers and Overseas Filipinos
l. Hijacking and other violations under RA Act of 1995, as amended by Republic Act
6235; destructive arson and murder, as No. 10022;
defined under the RPC, as amended; cc. Violation of RA 8293, or the Intellectual
m. Terrorism and conspiracy to commit Property Code of the Philippines;
terrorism as defined and penalized under dd. Violation of Section 4 of RA 9995, or the
Sections 3 and 4 of RA 9372; Anti-Photo and Video Voyeurism Act of
n. Financing of terrorism under Section 4 and 2009;
offenses punishable under Sections 5, 6, 7 ee. Violation of Section 4 of RA 9775, or the
and 8 of RA 10168, or the Terrorism Anti-Child Pornography Act of 2009;
Financing Prevention and Suppression Act ff. Violations of Sections 5, 7, 8, 9, 10(c), (d)
of 2012: and (e), 11, 12 and 14 of RA 7610, or the
o. Bribery under Articles 210, 211 and 211-A Special Protection of Children Against
of the RPC, as amended, and Corruption of Abuse, Exploitation and Discrimination;
Public Officers under Article 212 of the gg. Fraudulent practices and other violations
RPC, as amended; under RA 8799, or the Securities
p. Frauds and Illegal Exactions and Regulation Code of 2000; and
Transactions under Articles 213, 214, 215 hh. Felonies or offenses of a similar nature that
and 216 of the RPC as amended; are punishable under the penal laws of
q. Malversation of Public Funds and Property other countries.
under Articles 217 and 222 of the RPC, as
amended; Q: Who is liable for the crime of money
r. Forgeries and Counterfeiting under Articles laundering?
163, 166, 167, 168, 169 and 176 of the A: Money laundering is committed by any person
RPC, as amended; who, knowing that any monetary instrument or
property represents, involves, or relates to the
s. Violations of Sections 4 to 6 of RA. 9208, or
proceeds of any unlawful activity:
the Anti-Trafficking in Persons Act of 2003; a. transacts said monetary instrument or
t. Violations of Sections 78 to 79 of Chapter property;
IV, of PD 705, or the Revised Forestry b. converts, transfers, disposes of, moves,
Code of the Philippines, as amended; acquires, possesses or uses said monetary
u. Violations of Sections 86 to 106 of Chapter instrument or property;
VI, of RA 8550, or the Philippine Fisheries c. conceals or disguises the true nature,
Code of 1998; source, location, disposition, movement or
v. Violations of Sections 101 to 107, and 110 ownership of or rights with respect to said
of RA 7942, or the Philippine Mining Act of monetary instrument or property;
1995; d. attempts or conspires to commit money
w. Violations of Section 27(c), (e), (f), (g) and laundering offenses referred to in
(i), of RA 9147, or the Wildlife Resources paragraphs (a), (b) or (c);
Conservation and Protection Act;

e. aids, abets, assists in or counsels the the concerned officer and employee of the covered
commission of the money laundering person and media shall be held criminally liable
offenses referred to in paragraphs (a), (b)
or (c) above; and performs or fails to F. FREZING AND FORFEITURE
perform any act as a result of which he
facilitates the offense of money laundering Q: What is the scope of a freeze order?
referred to in paragraphs (a), (b) or (c) A: The freeze order or asset preservation order
issued under this Act shall be limited only to the
above; or
amount of cash or monetary instrument or value
f. Any covered person who, knowing that a of property that court finds there is probable cause
covered or suspicious transaction is to be considered as proceeds of a predicate
required under this Act to be reported to the offense, and the freeze order or asset preservation
Anti-Money Laundering Council (AMLC), order shall not apply to amounts in the same
fails to do so. account in excess of the amount or value of the
proceeds of the predicate offense.
C. SAFE HARBOR PROVISION
Q: What is the scope of forfeiture?
Q: What is the Safe Harbor Provision? A: The forfeiture shall include those other
A: No administrative, criminal or civil proceedings, monetary instrument or property having an
shall lie against any person for having made a equivalent value to that of the monetary
covered or suspicious transaction report in the instrument or property found to be related in any
regular performance of his duties in good faith, way to an unlawful activity or a money laundering
whether or not such reporting results in any criminal offense, when with due diligence, the former
prosecution under this Act or any other law. (Sec. 9) cannot be located, or it has been substantially
altered, destroyed, diminished in value or otherwise
rendered worthless by any act or omission, or it has
been concealed, removed, converted, or otherwise
D. WHEN IS MONEY LAUNDERING transferred, or it is located outside the Philippines or
COMMITTED (INCLUDING has been placed or brought outside the jurisdiction
PREDICATE CRIMES) of the court, or it has been commingled with other
monetary instrument or jurisdiction of the court, or it
The questions under this topic are integrated with has been commingled with other monetary
the other topics. instrument or property belonging to either the
offender himself or a third person or entity, thereby
E. AUTHORITY TO INQUIRE INTO BANK rendering the same difficult to identify or be
DEPOSITS segregated for purposes of forfeiture.
Q: What is the effect of the Bank Deposit —end of topic—

Secrecy Law on AMLA?
A: When reporting covered transactions to the Anti-
Money Laundering Council, covered institutions and
their officers, employees, representatives, agents,
advisors, consultants or associates shall not be
deemed to have violated Republic Act No. 1405, as
amended; Republic Act No. 6426, as amended;
Republic Act No. 8791 and other similar laws. (Sec.
9, RA 9160)
Covered persons and their officers and employees

are prohibited from communicating, directly or
indirectly, in any manner or by any means, to any
person or entity, the media, the fact that a covered
or suspicious transaction has been reported or is
about to be reported, the contents of the report, or
any other information in relation thereto. Neither
may such reporting be published or aired in any
manner or form by the mass media", electronic mail,
or other similar devices. In case of violation thereof,

and any authorized change, or any change

VI. ELECTRONIC COMMERCE ACT (R.A.
which arises in the normal course of
No, 8792)
communication, storage and display; and
b. It is reliable in the light of the purpose for
A. LEGAL RECOGNITION OF which it was generated and in the light of all
ELECTRONIC DATA MESSAGES, relevant circumstances.
DOCUMENTS, AND SIGNATURES
Q: When can an electronic data message or
Q: Are electronic data messages and electronic electronic document serve as best evidence for
documents legally recognized? the agreement or transactions contained
A: Yes. Information shall not be denied validity or therein?
enforceability by reason that it is in the form of an A: An electronic data message or electronic
electronic data message or electronic document. document meeting and complying with the
(Section 7, IRR) requirements of Sections 6 or 7 of the Electronic
Commerce Act shall be the best evidence of the
Q: What are the legal effects, validity, or agreement and transaction contained therein.
enforceability of electronic data messages or
electronic documents? However, a person is not required to use or accept
1. A requirement under law that information is in information contained in electronic data messages,
writing is satisfied if the information is in the form electronic documents, or electronic signatures, but
of an electronic data message or electronic a person's consent to do so may be inferred from
document. (Section 7(a), IRR) the person's conduct. (Section 9, IRR)
2. A requirement under law for a person to provide
information in writing to another person is Q: What is the weight and legal recognition of an
satisfied by the provision of the information in electronic signature?
an electronic data message or electronic A: An electronic signature on the electronic
document shall be equivalent to the signature of a
document. (Section 7(b), IRR)
person on a written document if the signature is an
3. A requirement under law for a person to provide
electronic signature and proved by showing that a
information to another person in a specified prescribed procedure, not alterable by the parties
non-electronic form is satisfied by the provision interested in the electronic document, existed under
of the information in an electronic data message which:
or electronic document if the information is 1. A method is used to identify the party sought to
provided in the same or substantially the same be bound and to indicate said party's access to
form. (Section 7(c), IRR) the electronic document necessary for his
4. Nothing limits the operation of any requirement consent or approval through the electronic
under law for information to be posted or signature;
displayed in specified manner, time or location; 2. Said method is reliable and appropriate for the
or for any information or document to be purpose for which the electronic document was
communicated by a specified method unless generated or communicated, in the light of all
and until a functional equivalent shall have been circumstances, including any relevant
developed, installed, and implemented. agreement;
(Section 7(d), IRR) 3. It is necessary for the party sought to be bound,
in order to proceed further with the transaction,
Q: Is an electronic document or electronic data to have executed or provided the electronic
message sufficient when a document is required signature; and
by law to be in writing, or obliges the parties to 4. The other party is authorized and enabled to
conform to a writing, or provides consequences
verify the electronic signature and to make the
in the event information is not presented in its
original form? decision to proceed with the transaction
A: Yes. Provided that it: authenticated by the same
1. Maintains its integrity and reliability; and
2. Can be authenticated so as to be usable for Q: When can an electronic data message or
subsequent reference in that: electronic document be considered as an
original document?
a. It has remained complete and unaltered,
A: It is considered as an original document if:
apart from the addition of any endorsement

1. There exists a reliable assurance as to the A: The person seeking to introduce an electronic
integrity of the electronic document or electronic data message or electronic document in any legal
data message from the time when it was first proceeding. (Section 11(3), ECA)
generated in its final form and such integrity is
shown by evidence other than the electronic Q: How can the integrity of the information and
data message itself; and (Section 11(a), IRR) communication system of an electronic data
message and/or electronic document be
2. The electronic document or electronic data
established?
message is capable of being displayed to the 1. By evidence that at all material times the
person to whom it is to be presented. (Section information and communication system or other
11(b), IRR) similar device was operating in a manner that
did not affect the integrity of the electronic data
Q: What are the criteria in assessing the integrity
message or electronic document, and there are
of an electronic document or electronic data
message? no other reasonable grounds to doubt the
A: Whether the information has remained complete integrity of the information and communication
and unaltered, apart from the addition of any system; (Section 11(4a), ECA)
endorsement and any change which arises in the 2. By showing that the electronic data message or
normal course of communication, storage and electronic document was recorded or stored by
display. It shall be assessed in the light of the a party to the proceedings who is adverse in
purpose in which the information was generated and interest to the party using it; or (Section 11(4b),
all the relevant circumstances. (Section 11(c), IRR) ECA)
3. By showing that the electronic data message or
Q: How are electronic data messages and/or
electronic document was recorded or stored in
electronic documents authenticated?
A: By demonstrating, substantiating and validating the usual and ordinary course of business by a
a claimed identity of a user, device, or another entity person who is not a party to the proceedings
in an information or communication system, among and who did not act under the control of the
other ways, as follows: party using the record. (Section 11(4c), ECA)
1. Electronic signature - By proof that a letter,
character, number or other symbol in electronic Q: In what form can an electronic data messages
form representing the persons named in and or electronic documents be retained when a
attached to or logically associated with an provision of law requires that documents be
electronic data message and electronic retained in their original form?
A: In the form which the electronic data message or
document were employed and executed by a
electronic document:
person with the intention of authenticating or 1. Remains accessible so as to be usable for
approving such electronic data message or subsequent reference; (Section 20(a)(i), IRR)
electronic document; (Section 11(1a), ECA) 2. Is retained in the format in which it was
2. Electronic data message or electronic generated, sent or received, or in a format
document - By proof that an appropriate which can be demonstrated to accurately
security procedure was adopted and employed represent the electronic data message or
for the purpose of verifying the originator of an electronic document generated, sent or
electronic data message or electronic received; and (Section 20(a)(ii), IRR)
document, or detecting error or alteration in the 3. Where applicable, enables the identification of
communication, content or storage of an its originator and addressee, as well as the
electronic document or electronic data message determination of the date and the time it was
from a specific point, which, using algorithm or sent or received. (Section 20(a)(iii), IRR)
codes, identifying words or numbers,
encryptions, answers back or acknowledgment NOTE: This requirement is satisfied by using the
procedures, or similar security devices. (Section services of a third party, provided that the conditions
11(1b), ECA) set forth above are met. (Section 20(b), IRR)
Q: Who has the burden of proving authenticity Relevant government agencies tasked with
of an electronic data message or electronic enforcing or implementing applicable laws relating
document? to the retention of certain documents may, by
appropriate issuances, impose regulations to

ensure the integrity, reliability of such documents

and its proper implementation. (Section 20(c), IRR) Q: What is the admissibility of an electronic data
message or electronic document?
Q: How are the matters of admissibility and A: In any legal proceeding, nothing in the application
evidentiary weight, and the presumption of of the rules on evidence shall deny the admissibility
integrity of an electronic signature presumed to of an electronic data message or electronic
be established? document in evidence:
A: By an affidavit given to the best of the deponent's 1. On the sole ground that it is in electronic form;
or affiant's personal knowledge subject to the rights or (Section 18(a), IRR)
of parties in interest to cross-examine such 2. On the ground that it is not in the standard
deponent or affiant as a matter of right. (Section 19, written form. (Section 18(b), IRR)
IRR)
Q: What is the evidentiary weight of an
Q: Can the deponent of affidavit establishing electronic data massage or electronic
matters of admissibility and evidentiary weight, document?
and the presumption of integrity of an electronic A: The reliability of the manner in which it was
signature be cross examined? generated, stored or communicated, the reliability of
A: The deponent may be cross-examined by a party the manner in which its originator was identified, and
to the proceedings who is adverse in interest to the other relevant factor shall be given due regard.
party who has introduced the affidavit or has caused (Section 18, IRR)
the affidavit to be introduced. (Section 15(1), ECA)
D. OBLIGATION OF CONFIDENTIALITY
NOTE: The person who is not a party to the
proceedings and who did not act under the control
Q: What is the obligation of confidentiality?
of the party using the electronic data message or
A: Except for the purposes authorized under ECA,
electronic document may also be cross-examined
any person who obtained access to any electronic
provided that the electronic data message or
key, electronic data message or electronic
electronic document was recorded or stored in the
document, book, register, correspondence,
usual and ordinary course of business by the former.
information, or other material pursuant to any
(Section 15(2), ECA)
powers conferred under ECA, shall not convey to or
share the same with any other person. (Section 32,
B. PRESUMPTION RELATING TO ECA)
ELECTRONIC SIGNATURES
—end of topic—
Q: What are the presumptions relating to
electronic signatures?
A: The proof of the electronic signature shall give
rise to the rebuttable presumption that:
1. The electronic signature is the signature of the
person to whom it correlates; and (IRR, Section
14 (a))
2. The electronic signature was affixed by that
person with the intention of signing or approving
the electronic data message or electronic
document, unless the person relying on the
electronically signed electronic data message
or electronic document knows or has notice of
defects in or unreliability of the signature or
reliance on the electronic signature is not
reasonable under the circumstances. (Section
14(b), IRR)
C. ADMISSIBILITY AND EVIDENTIAL

WEIGHT OF ELECTRONIC DATA
MESSAGE OR ELECTRONIC
DOCUMENT

Q: Does FRIA apply to pending Insolvency,

VII. FINANCIAL REHABILITATION,
Suspension of Payments and Rehabilitation
INSOLVENCY, LIQUIDATION AND Cases?
SUSPENDION OF PAUMENTS (R.A. No. A: Generally, NO. It only governs all petitions filed
10142, FR RULES [A.M. No. 15-04-06-SC] after it has taken effect. (i.e., prospectively)
However, if, in the opinion of the court, the
A. BASIC CONCEPTS application of prior laws and regulations would not
be feasible or would work injustice, the court may
apply FRIA as the governing law. (FRIA, RA 10142,
Q: What is the nature of FRIA Proceedings?
A: FRIA Proceedings are (a) In Rem, (b) Summary, Sec. 146; Situs Dev. Corp v. Asiatrust Bank, G.R.
and (c) Non-adversarial (FRIA, RA 10142, Sec. 3) No. 233850, 2019)
Q: Who are the Parties in FRIA?

Q: What is the effect of the In Rem nature of FRIA
A: Debtors are:
Proceedings?
1. Partnership duly registered with the SEC;
A: Jurisdiction over all persons affected by the
proceedings shall be considered as acquired upon 2. Individual debtor who is natural person,
publication of the notice of the commencement of resident and citizen of the Philippines,
the proceedings in any newspaper of general and has become insolvent;
circulation in the Philippines as prescribed under the 3. Corporation duly organized and existing
Supreme Court rules of procedure. under Philippine laws; or
4. Sole Proprietorship registered with the DTI
Q: What is the effect of the Summary nature of
the FRIA Proceedings? (FRIA, RA 10142, Sec. 4[k], [o])
A: The following are prohibited pleadings:
(a) motion to dismiss; The term debtor does not include:
(b) motion for a bill of particulars; 1. Banks, except Government FIs and
(c) petition for relief; GOCCs (unless the charter provides
(d) motion for extension; otherwise)
(e) motion for postponement and other 2. Insurance companies,
motions of similar intent; 3. Pre-need companies, and
(f) reply; 4. National and local government agencies or
(g) rejoinder; units.
(h) Intervention; and
NOTE: There are special rules for foreign
(i) any pleading or motion similar to, or of like
corporations undergoing rehab proceedings abroad
effect as, any of the foregoing. but also doing business in the country (FRIA, RA
10142, Sec. 139-142)
Any order issued by the court under the FR and
FLSP Rules are immediately executory. Reliefs Creditors are natural or juridical persons which
ordered by the court shall take into account the need have a claim against their respective debtors that
for resolution of the proceedings in a just, equitable, arose on or before the commencement date. (FRIA,
and speedy manner. (FR Rules, Rule 1, Sec. 4; RA 10142, Sec. 4[h])
FLSP Rules, Rule 1, Sec. 3)
Q: Will the fact of default bar the initiation of
Q: Does the principle of res judicata apply in FRIA Proceedings?
FRIA Proceedings? A: NO. A debtor may file for rehabilitation despite
A: YES. The element of identity of parties only having already defaulted on its obligations to its
requires substantial identity of parties. Thus, if creditor. If the petition for rehabilitation is sufficient
there was already a previous decision involving one and the rehabilitation plan feasible, rehabilitation
creditor and one debtor which was decided with should proceed. (Metrobank v. Liberty Corrugated,
finality, and there is another claim involving a G.R. No. 184317, 25 Jan. 2017)
different creditor litigating the same matter as the
previous decision, the previous decision is res Q: What do Claims include?
judicata and should apply to the second claim. A: All claims or demands of whatever nature or
(Pryce Corp. v. Chinabank, G.R. No. 172302, 18 character against the debtor or its property,
Feb. 2014) whether for money or otherwise, liquidated or
unliquidated, fixed or contingent, matured or

unmatured, disputed or undisputed, including, but Upon motion filed by the individual debtor, the court
not limited to: may issue an order suspending any pending
a. All claims of the government, whether execution against the individual debtor.
national or local, including taxes, tariffs and Provided, That properties held as security by
customs duties; and secured creditors shall not be the subject of such
suspension order. The suspension order shall lapse
b. Claims against directors and officers of the
when three (3) months shall have passed without
debtor arising from acts done in the the proposed agreement being accepted by the
discharge of their functions falling within the creditors or as soon as such agreement is denied.
scope of their authority. (FRIA, RA 10142, Sec. 96)
This inclusion does not prohibit the creditors or third
parties from filing cases against the directors and No creditor shall sue or institute proceedings to
officers acting in their personal capacities. collect his claim from the debtor from the time of
the filing of the petition for suspension of payments
Q: What is Rehabilitation? and for as long as proceedings remain pending
A: Rehabilitation refers to the restoration of the except:
debtor to a condition of successful operation and (a) those creditors having claims for personal
solvency, if it is shown that its continuance of labor, maintenance, expense of last illness
operation is economically feasible and its creditors and funeral of the wife or children of the
can recover by way of the present value of debtor incurred in the sixty (60) days
payments projected in the plan, more if the debtor
immediately prior to the filing of the petition;
continues as a going concern than if it is
immediately liquidated. (FRIA, RA 10142, Sec. and
4[gg]) (b) secured creditors.
Q: What is an Insolvent? B. MODES OF REHABILITATION

A: Insolvent shall refer to the financial condition of a
debtor that is generally unable to pay its or his 1. COURT-SUPERVISED
liabilities as they fall due in the ordinary course of REHABILITATION
business or has liabilities that are greater than its or
his assets. (FRIA, RA 10142, Sec. 4[p]) Q: What are the kinds of Court-supervised
rehabilitation?
All that is required to be able to file a petition is that A: Court-supervised rehabilitation may be
an individual debtor, who may possess sufficient voluntary (FRIA, RA 10142, Sec. 12), or
property to cover all his debts, foresees the involuntary (FRIA, RA 10142, Sec. 13 & 14). This
impossibility of meeting his debts when they refers to the party initiating the proceedings -
respectively fall due (FRIA, RA 10142, Sec. 94) voluntary if the debtor initiates the proceedings, or
involuntary if the creditor initiates.
Q: What is Liquidation?
A: In Liquidation, corporations preserve their assets Q: Who files the petition on behalf of the debtor
in order to sell them. Without these assets, in a voluntary insolvency proceeding?
business operations are effectively discontinued. A: The following may authorize the filing of the
The proceeds of the sale are distributed equitably petition for voluntary rehabilitation on behalf of the
among creditors, and surplus is divided or losses debtor:
are re-allocated. (Viva Shipping Lines v. Keppel 1. If sole proprietorship, owner
Philippines Mining, G.R. No. 177382, 2016)
2. If partnership, majority of partners
Q: What is the nature of FRIA Proceedings? 3. If corporation, majority of directors/trustees,
A: FRIA Proceedings are (a) In Rem, (b) Summary, authorized by stockholders representing at
and (c) Non-adversarial (FRIA, RA 10142, Sec. 3) least 2/3 of the outstanding capital stock or
2/3 of the members in non-stock
Q: What is Suspension of Payments? corporations (FRIA, RA 10142, Sec. 12)
A: The individual debtor may file a verified petition
that he be declared in the state of suspension of Q: Can a group of debtors file a petition for a
payments by the court of the province or city in voluntary insolvency proceeding?
which he has resided for six (6) months prior to the A: YES. A group of debtors may jointly file a petition
petition for liquidation. (FLSP Rules, Rule 3, Sec. 1) for rehabilitation when:

1. One or more of its members foresee the i. The names of at least 3 nominees to the
impossibility of meeting debts when they position of rehabilitation receiver; and
respectively fall due, and j. Other documents required to be filed with
2. The financial distress would likely the petition pursuant to the FRIA and the
adversely affect the financial condition rules of procedure as may be promulgated
and/or operations of the other members of by the Supreme Court. (FRIA, RA 10142,
the group and/or the participation of the Sec. 12)
other members of the group is essential
under the terms and conditions of the Q: Where should a petition for voluntary
proposed Rehabilitation Plan. (FR Rules, insolvency proceeding be filed?
A: The venue for a petition for voluntary insolvency
Rule 2, Sec. 1)
proceeding is the RTC of the province or city where
the insolvent debtor resides, as stated in the
A group of debtors shall refer to: Articles of Incorporation. However, when it is
1. Corporations that are financially related to uncontroverted that the insolvent corporation
one another as parent corporations, abandoned the old principal office, the corporation
subsidiaries or affiliates; is considered a resident of the city where its actual
2. Partnerships that are owned more than fifty principal office is currently found. (Pilipinas Shell
percent (50%) by the same person; and Petroleum Corp. v. Royal Ferry Services, Inc., G.R.
3. Single proprietorships that are owned by No. 188146, 1 Feb. 2017)
the same person.
Q: Who may file the petition in an involuntary
insolvency proceeding?
When the petition covers a group of debtors, all A: The creditor or group of creditors may file the
reference under the rules to debtor shall include and petition for involuntary rehabilitation if their claim is
apply to the group of debtors. (FRIA, RA 10142, at least:
Sec. 4[n]) 1. P1,000,000; or
2. At least 25% of subscribed capital stock or
Q: What are the requirements in a voluntary
insolvency proceeding? partners’ contributions, whichever is higher.
A: The law requires the fact of the debtor’s (FRIA, RA 10142, Sec. 13; FR Rules, Rule
insolvency, and the viability of its rehabilitation. 2, Sec. 4)
The following are also required to be either an
attachment or a part of the body of the petition: Q: When can a creditor file a petition for an
a. Identification of the debtor, its principal involuntary insolvency proceeding?
activities and its addresses; A: The creditors mentioned in the item immediately
b. Statement of the fact of and the cause of preceding this can file a petition for an involuntary
the debtor's insolvency or inability to pay its insolvency proceeding when:
1. The due and demandable claims have not
obligations as they become due;
been paid for at least 60 days or that the
c. The specific relief sought pursuant to the
debtor has failed generally to meet its
FRIA;
liabilities as they fall due; or
d. The grounds upon which the petition is
2. A creditor, other than the petitioners, has
based;
initiated foreclosure proceedings against
e. Other information that may be required
the debtor that will prevent the debtor from
under the FRIA depending on the form of
paying its debts as they become due or will
relief requested;
render it insolvent. (FRIA, RA 10142, Sec.
f. Schedule of the debtor's debts and
13)
liabilities including a list of creditors with
their addresses, amounts of claims and
Q: What are the requirements in an involuntary
collaterals, or securities, if any; insolvency proceeding?
g. An inventory of all its assets including A: The law requires the substantial likelihood of
receivables and claims against third the debtor’s rehabilitation. The following are also
parties; required to be a part of the body of the petition:
h. A Rehabilitation Plan; a. Identification of the debtor its principal
activities and its address;

b. The circumstances sufficient to support a COMMENCEMENT ORDER

petition to initiate involuntary rehabilitation Q: What are the effects of a Commencement
proceedings under Section 13 of the FRIA; Order?
A: The following are the effects of a
c. The specific relief sought under the FRIA;
Commencement Order:
d. A Rehabilitation Plan; 1. Vest the rehabilitation with all the powers
e. The names of at least 3 nominees to the and functions provided for the FRIA, such
position of rehabilitation receiver; as the right to review and obtain records to
f. Other information that may be required which the debtor's management and
under the FRIA depending on the form of directors have access, including bank
relief requested; and accounts or whatever nature of the debtor
g. Other documents required to be filed with subject to the approval by the court of the
the petition pursuant to the FRIA and the performance bond filed by the rehabilitation
rules of procedure as may be promulgated receiver;
by the Supreme Court. (FRIA, RA 10142, 2. Prohibit or otherwise serve as the legal
Sec. 14) basis rendering null and void the results
of any extrajudicial activity or process to
Q: What is the venue for Court-supervised
seize property, sell encumbered property,
rehabilitation proceedings?
A: Shall be filed with the RTC which has jurisdiction or otherwise attempt to collection or
over the principal office of the debtor alleged to enforce a claim against the debtor after
be insolvent as specified in its articles of commencement date unless otherwise
incorporation or partnership or in its registration allowed in the FRIA, subject to the
papers with the Department of Trade and Industry provisions of Section 50 hereof;
(DTI) in cases of sole proprietorship, as the case
3. Exempt the debtor from liability for
may be.
taxes and fees, including penalties,
A petition for voluntary or involuntary rehabilitation interests, and charges due to the
involving a group of debtors shall be filed in the RTC government;
which has jurisdiction over the principal office of any 4. Serve as the legal basis for rendering null
of the debtors alleged to be insolvent, as specified and void any setoff after the
in its articles of incorporation or partnership, or commencement date of any debt owed to
registration papers with the DTI in cases of sole
the debtor by any of the debtor's creditors;
proprietorship, as the case may be. (FR Rules, Rule
1, Sec. 6) 5. Serve as the legal basis for rendering null
and void the perfection of any lien
Q: What must the court do upon receipt of the against the debtor's property after the
petition for Court-supervised rehabilitation commencement date; and
proceeding? 6. Consolidate the resolution of all legal
A: Upon receipt of the petition, the Court may take proceedings by and against the debtor to
on any of the three courses of action:
the court; provided, however, that the court
1. If the court finds the petition to be
may allow the continuation of cases on
substantial in form and substance, the
other courts where the debtor had
commencement order shall be issued
initiated the suit. (FR Rules, Rule 2, Sec.
within 5 working days from its filing
9)
2. If found deficient within the same period,
the court may give 5 working days from
Q: What is duration of the Commencement
receipt of the notice of order to satisfy the Order?
deficiency. A: The Commencement Order shall be effective for
3. The court shall dismiss the petition if the the duration of the rehabilitation proceedings,
deficiency is not complied within the unless:
extended 5-day period (FR Rules, Rule 2, a. Earlier lifted by the court;
Sec. 7) b. The Rehabilitation Plan is seasonably
confirmed or approved; or

c. The Rehabilitation proceedings are Q: Are the effects of a Stay or Suspension Order
ordered terminated by the court (FR retroactive?
Rules, Rule 2, Sec. 11) A: YES. The effects of a Stay Order are immediate,
and shall also be retroactive to the date of the filing
Q: What is the Commencement date? of the petition.
A: “Commencement date” refers to the date on
Once due notice is made through publication, the
which the court issues the Commencement Order,
rehabilitation court may nullify actions inconsistent
which shall be retroactive to the date of filing of the
with the stay order but which may have been taken
petition for voluntary or involuntary proceedings.
prior to publication. Because prior to publication,
creditors may not yet be aware that they are to
Hence, The effects of the Commencement Order
shall be reckoned from the date of the filing of desist from pursuing claims against the insolvent
debtor. (Allied Banking Corp. v. Equitable PCI Bank,
the petition for corporate rehabilitation, be it
Inc., G.R. No. 191939, 2018)
voluntary or involuntary.
Q: Do the Commencement Order and Stay or
The determination of the date of the filing of the
Suspension Order suspend the right of creditors
petition for rehabilitation is relevant in ascertaining
to enforce the security or lien over the
the extent of the legal effects of a Commencement
properties of the debtor?
Order.
A: YES. The issuance of the Commencement Order
and the Suspension or Stay Order, and any other
Determining the date when ownership of the subject
provision of the Act, shall not in any way diminish or
properties was vested upon the creditor is crucial. If
impair the security or lien of a secured creditor, or
the ownership was vested prior to the filing of the
the value of his lien or security, except that his
petition for corporate rehabilitation, the effect of
such sale is to release the debtor from its right to enforce the security or lien may be
suspended during the term of the Stay Order.
outstanding obligation. In other words there is no
The court may allow the enforcement of the security
more creditor-debtor relationship to speak of. Thus,
or lien if the property is not necessary for the
the Stay Order does not apply anymore as
rehabilitation of the debtor. (FR Rules, Rule 2, Sec.
Section 17 of the FRIA extends only to
59)
processes which occurred after the
commencement date. (Land Bank of the
Q: Do the Commencement Order and Stay or
Philippines v. Polillo Paradise Island
Suspension Order prohibit the commencement
Corporation,G.R. No. 211537, 2019)
of actions or proceedings against the debtor?
A: NO. The issuance of a stay order does not
STAY OR SUSPENSION ORDER deprive creditors the right to enforce their claims
Q: What are the effects of a Stay or Suspension against the debtor. It does not affect the right to
Order? commence actions or proceedings in order to
A: The following are the effects of a Stay or preserve ad cautelam a claim against the debtor
Suspension Order: and to toll the running of the prescriptive period
a. Suspend all actions or proceedings, in to file the claim. (Allied Banking Corp. v. Equitable
court or otherwise, for the enforcement of PCI Bank, Inc., G.R. No. 191939, 2018)
claims against the debtor;
b. Suspend all actions to enforce any Q: Can creditors still claim against the sureties
judgment, attachment or other of the debtor despite the issuance of the
provisional remedies against the debtor; Commencement Order and Stay or Suspension
Order?
c. Prohibit the debtor from selling,
A: Claims against sureties and other persons
encumbrancing, transferring or solidarily liable with the debtor is not barred by a stay
disposing in any manner any of its order. (Trade and Investment Development
properties (except in the ordinary course of Corporation of the Philippines v. Philippine Veterans
business); and Bank, G.R. No. 233850, 2019)
d. Prohibit the debtor from making any
Q: What happens if the creditor violates the Stay
payment of its liabilities outstanding as of
or Suspension Order?
the commencement date (except as may A: The creditors must ventilate their claims before
be provided in the order). (FRIA, RA 10142, the rehabilitation court, and any “attempts to seek
Sec. 16[q]) legal or other resource against the distressed

corporation shall be sufficient to support a finding of Q: What is the rationale of the Stay Order? (Bar
indirect contempt of court.” (Bureau of Internal 2006)
Revenue v. Lepanto Ceramics, Inc., G.R. No. A: “The justification for the suspension of actions or
224764, 2017) claims, without distinction, pending rehabilitation
proceedings is to enable the management
Q: What are the exceptions to the Stay or committee or rehabilitation receiver to effectively
Suspension Order? exercise its/his powers free from any judicial or
A: The following are exceptions to the Stay or extra-judicial interference that might unduly hinder
Suspension Order: or prevent the "rescue" of the debtor company.
1. Cases already pending in the SC as of the
commencement date; To allow such other actions to continue would only
2. Cases pending or filed at a specialized add to the burden of the management committee or
rehabilitation receiver, whose time, effort and
court or quasi-judicial agency;
resources would be wasted in defending claims
3. Enforcement actions against: against the corporation instead of being directed
a. sureties and other persons toward its restructuring and rehabilitation.”
solidarily liable with the debtor
b. third party or accommodation REHABILITATION RECEIVER & MEMBERS OF
mortgagors THE MANAGEMENT COMMITTEE
c. unless the property subject of the Q: Who are the court-appointed persons in a
third party or accommodation rehabilitation proceeding?
A: The following are court-appointed individuals:
mortgagor is necessary for the
1. Rehabilitation receiver
rehabilitation of the debtor, as
2. Members of the Management Committee
determined by the court upon
(FR Rules, Rule 1, Sec. 5[m][p])
recommendation of the
rehabilitation receiver Q: What is a rehabilitation receiver?
d. issuers of letters of credit A: The person or persons, natural or juridical,
4. Any action of customers/clients of a appointed as such by the court pursuant to the FRIA
securities market participant to recover and which shall be entrusted with such powers and
money/securities entrusted to the latter in duties as set forth herein. (FRIA, R.A. 10142, Sec.
the ordinary course of business, and any 4[hh])
action of such securities market participant
Q: What are the minimum requirements to be
or the appropriate regulatory agency/self- appointed as a rehabilitation
regulatory organization to pay or settle receiver/management committee?
such claims or liabilities; A: If the rehabilitation receiver is a natural person:
5. Actions of a licensed broker/dealer to sell 1. Citizen of the Philippines or a resident of
pledged securities of a debtor, pursuant to the Philippines in the 6 months prior to
a securities pledge or margin agreement for nomination;
the settlement of securities transactions; 2. Not been earlier dismissed as a
6. Clearing and settlement of financial rehabilitation receiver;
transactions through the facilities of a 3. As far as practicable, has expertise and
clearing agency or similar entity duly acumen to manage and operate a business
authorized, registered and/or recognized similar in size and complexity of that of the
by the appropriate regulatory agency (like debtor;
BSP, SEC, etc.) as well as any form of 4. Has a general familiarity with the rights of
actions of such agencies to reimburse creditors subject to suspension of payment
themselves for any transactions settled by or rehabilitation and a general
the debtor; and understanding of the duties and obligations
7. Criminal actions against the individual of a rehabilitation receiver;
debtor or owner, partner, director, or officer 5. Of good moral character and with
of the debtor. (FRIA, RA 10142 Sec. 18) acknowledged integrity, impartiality and
independence;
6. No conflict of interest;

7. Has an operating knowledge in rehabilitation receiver. (FR Rules, Rule 2,

management, finance, and rehabilitation of Sec. 21)
distressed companies; and
8. Willing and able to file a bond in such Q: What are the principal duties of the
amount as determined by the court (FR rehabilitation receiver?
A: The principal duties of the rehabilitation receiver
Rules, Rule 2, Sec. 21[A])
are the following:
a. Preserving and maximizing the value of the
NOTE: The conflict of interest requirement may be
assets of the debtor during the
waived, expressly or impliedly, by a party who may
be prejudiced thereby. (FRIA, RA 10142, Sec. 29[d]) proceedings;
b. Determining the viability of the
If the rehabilitation receiver is a juridical person: rehabilitation;
1. Duly authorized to do business in the c. Preparing and recommending a
Philippines for at least six (6) years prior to Rehabilitation Plan to the court; and
its appointment; Implementing the approved Rehabilitation
2. Good standing as certified by the Plan (FR Rules, Rule 2, Sec. 26)
appropriate regulatory agency/ies;
3. No conflict of interest; Q: Does the rehabilitation receiver have the
4. Not been earlier dismissed as a power to determine the validity of the
rehabilitation receiver; rehabilitation plan, and to approve it?
A: No. The determination of the validity and the
5. Must submit the name of the person
approval of the rehabilitation plan is not the
designated to discharge the responsibilities responsibility of the rehabilitation receiver, but
and powers of a rehabilitation receiver and remains the function of the court – notwithstanding
the names of the employees and other the credentials of the court-appointed rehabilitation
persons authorized to assist the designated receiver. While the court may consider the receiver's
representative, together with a sworn report favorably recommending the debtor's
certification that these persons possess the rehabilitation, it is not bound thereby if, in its
judgment, the debtor's rehabilitation is not feasible.
qualifications and none of the
(Land Bank of the Philippines v. Fastech Synergy
disqualifications required from natural Philippines, Inc., G.R. No. 206150, 2017)
persons;
6. Must submit a sworn undertaking, duly Q: How is the removal of the rehabilitation
approved in accordance with law, binding receiver initiated?
itself to be solidarily liable with the persons A: The rehabilitation receiver may be removed at
designated by it to discharge the functions any time by the court, either:
a. motu proprio; or
and responsibilities of a rehabilitation
b. upon motion by any creditor/s holding more
receiver;
than 50% of the total obligations of the
7. Willing and able to file a bond in such
debtor (FR Rules, Rule 2, Sec. 27)
amount as may be determined by the court;
8. Not disqualified to discharge the duties of a
Q: What are the grounds for the removal of the
rehabilitation receiver under the rehabilitation receiver?
Constitution and other relevant laws (FR A: The following are the grounds for removal of the
Rules, Rule 2, Sec. 21) rehabilitation receiver:
1. Incompetence, gross negligence, failure to
The Representatives of Juridical Persons must have perform or failure to exercise the proper
the following requirements: degree of care in the performance of his
1. Duly designated and authorized to act for duties and powers;
and on behalf of the juridical entity; 2. Lack of a particular or specialized
2. Must be a director, officer, stockholder or competency required by the specific case;
partner of the juridical entity; and 3. Illegal acts or conduct in the performance
3. Must submit a sworn undertaking that he of his duties and powers;
shall be solidarily liable with his firm for all 4. Lack of qualification or presence of any
the obligations and responsibilities of a disqualification;

5. Conflict of interest that arises after his Any party to the proceeding adversely affected by
appointment; the appointment of any person with a conflict of
6. Manifest lack of independence that is interest to any court-appointed position in a
rehabilitation proceeding may however waive his
detrimental to the general body of the
right to object to such appointment and, if the
stakeholders; waiver is unreasonably withheld, the court may
7. Failure, without just cause, to perform any disregard the conflict of interest, taking into account
of his powers and functions under these the general interest of the stakeholders. (FR Rules,
Rules; or Rule 2, Sec. 24)
8. Any of the grounds for removing a trustee
under the general principles of trusts. Q: Who is in charge of the management of the
debtor’s business?
A: General Rule: The management of the juridical
Q: When will an individual be deemed to have a
debtor shall remain with existing management.
conflict of interest in a rehabilitation
proceeding?
Exception: Displacement of Existing Management
A: An individual shall be deemed to have a conflict
by the Management Committee
of interest if he is so situated as to be materially
influenced in the exercise of his judgment for or
Upon motion of any interested party and within the
against any party to the proceedings. Without
soonest possible time, the court may appoint and
limiting the generality of the foregoing, an individual
direct the rehabilitation receiver to assume the
shall be deemed to have a conflict of interest if:
powers of management of the debtor, or appoint a
1. He is a creditor, owner, partner or
management committee that will undertake the
stockholder of the debtor; management of the debtor, upon clear and
2. He is engaged in a line of business which convincing evidence of any of the following
competes with that of the debtor; circumstances:
3. He is, or was, within 5 years from the filing a. Actual or imminent danger of dissipation,
of the petition, a director, officer, owner, loss, wastage or destruction of the debtor's
partner or employee of the debtor or any of assets or other properties; or
the creditors, or the auditor or accountant b. Paralyzation of the business operations of
of the debtor; the debtor; or
4. He is, or was, within 2 years from the filing c. Gross mismanagement of the debtor, fraud
of the petition, an underwriter of the or other wrongful conduct on the part of, or
outstanding securities of the debtor; gross or willful violation of the Act by the
5. is related by consanguinity or affinity within existing management of the debtor or the
the fourth civil degree to any individual owner, partner, director, officer or
creditor, owner/s of a sale proprietorship- representative/s in management of the
debtor, partners of a partnership-debtor or debtor.
to any stockholder, director, officer,
employee or underwriter of a corporation- In case the court appoints the rehabilitation receiver
debtor; or to assume the management of the debtor, the court
may:
6. He has any other direct or indirect material
a. Require the rehabilitation receiver to post
interest in the debtor or any of the creditors. an additional bond;
(FR Rules, Rule 2, Sec. 22)
b. Authorize him to engage the services or to
employ persons or entities to assist him in
Q: What is the effect of the presence of any
conflict of interest of the rehabilitation receiver? the discharge of his managerial functions;
A: Any rehabilitation receiver, member of the and
management committee or persons employed or c. Authorize a commensurate increase in his
contracted by them possessing any conflict of compensation. (FR Rules, Rule 2, Sec. 31)
interest shall make the appropriate disclosure
either to the court or to the creditors in case of out- Q: What is the effect of appointing the
of-court rehabilitation proceedings. (FRIA, R.A. rehabilitation receiver to assume the
10142, Sec. 40) management of the debtor’s business?

A: The following are the implications of appointing good faith in the exercise of their powers and
the rehabilitation receiver to assume the functions. (FR Rules, Rule 2, Sec. 38)
management of the debtor’s business:
1. The rehabilitation receiver and its Exception: If the act or omission is in bad faith or not
representative/s shall remain solidarily in the exercise of their powers and functions.
liable for all obligations and responsibilities,
subject to the right of withdrawal prior to the DETERMINATION OF CLAIMS
implementation of the disputed decision. Q: Are the claims against the debtor, as stated
in the petition disputable?
(FR Rules, Rule 2, Sec. 31) A: Yes.
2. Upon assumption of management, the
receiver shall exercise the same powers Q: How are claims against the debtor disputed?
granted under Sec. 26 in addition to the A: Through the establishment of a preliminary
powers granted to the management registry of claims, which will be open for public
committee (FR Rules, Rule 2, Sec. 32) inspection. (FR Rules, Rule 2, Sec. 44)
Q: What is the procedure for the determination

Q: In case the rehabilitation receiver is a juridical
of claims?
person, which action should be deemed valid
1. Establishment of the preliminary
and binding?
A: In case the rehabilitation receiver is a juridical registry of claims
person, the acts of its designated representative Within twenty (20)-days from his assumption into
shall be presumed to be carried out in accordance office, the rehabilitation receiver shall establish a
with the authority vested in him by the juridical entity preliminary registry of claims based on the schedule
which he represents. In case of conflict, the decision of debts and liabilities provided in the petition.
of the governing body of the juridical entity shall
prevail. (FR Rules, Rule 2, Sec. 31) All claims included in the registry of claims must be
duly supported by sufficient evidence. (FR Rules,
Q: What is the Management Committee? Rule 2, Sec. 44)
A: Management committee is composed of persons,
natural or juridical, appointed by the court, to the rule 2. Inspection of registry of claims
on displacement of existing management of the The rehabilitation receiver shall make the registry
debtor’s business. available for public inspection and give notice to the
debtor, creditors and stakeholders on where and
Q: What is the role of the management when they may inspect it by causing the publication
committee/rehabilitation receiver who has been of the place/s and date/s of inspection in a
appointed to manage the debtor’s business? newspaper of general circulation in the Philippines
A: The management committee shall: once every week for two (2) consecutive weeks.
a. Take custody of and control all assets
owned or possessed by the debtor; The period of inspection shall not exceed fifteen
b. Take the place of the management and (15) days from the last publication. (FR Rules,
Rule 2, Sec. 44)
governing body of the debtor; and
c. Assume the powers, rights and 3. Opposition or Challenge of Claims
responsibilities of the debtor (FR Rules, Within thirty (30) days from the expiration of the
Rule 2, Sec. 33) period to inspect the registry of claims, the debtor,
Note: The management committee may overrule or creditors, stakeholders and other interested parties
revoke the actions of the previous management or may submit to the court a challenge to the claim/s,
governing body of the debtor (FR Rules, Rule 2, as listed in the registry of claims serving a certified
Sec. 33) copy on the rehabilitation receiver and the creditor
holding the challenged claim/s. (FR Rules, Rule 2,
Q: Can you sue the rehabilitation receiver, Sec. 45)
management committee, or any persons that
they engage for any act in the exercise of their 4. Appeal to the Court
powers and functions? The aggrieved party may seek the review of the
A: Generally, no. The rehabilitation receiver, the decision of the rehabilitation receiver on a claim by
members of the management committee, and all filing a motion with the rehabilitation court within five
persons they engage shall not be subject to any (5) days from receipt of the rehabilitation receiver's
action, claim or demand for any act or omission in

assailed decision, which shall be decided by the 5. Establish subclasses of voting creditors if
court at the soonest possible time. (FR Rules, Rule prior approval has been granted by the
2, Sec. 46) court;
6. Indicate how the insolvent debtor will be
5. Submission of Claims to the Court
rehabilitated, among others, through: debt
Upon the expiration of the thirty (30)-day period, the
rehabilitation receiver shall submit to the court the forgiveness; debt rescheduling;
registry of claims. The registry of claims shall reorganization or quasi-reorganization;
include the following lists of dacion en pago; debt- to-equity conversion;
a. claims that have not been subject to payment of unpaid subscriptions by
challenge; shareholders; sale of the business as a
b. claims resolved by the rehabilitation going concern; setting-up of a new
receiver after these have been challenged; business entity or other similar
and arrangements, to restore the financial well-
c. disputed but unresolved claims. (FR Rules, being and viability of the insolvent debtor;
Rule 2, Sec. 45) 7. Specify the treatment of each class or
subclass described in subsections 4 and 5
REHABILITATION PLAN (i.e., voting creditors);
Q: What is the rehabilitation plan? 8. Provide for equal treatment of all claims
A: A plan by which the financial well-being and within the same class or subclass, unless a
viability of an insolvent debtor can be restored using particular creditor agrees to a less
various means including, but not limited to, debt favorable treatment;
forgiveness, debt rescheduling, reorganization or
9. Ensure that the payments made under the
quasi- reorganization, dacion en pago, debt-equity
conversion and sale of the business (or parts of it) Rehabilitation Plan (which shall include
as a going concern, or setting-up of new business proposed dates of payment and specific
entity, or other similar arrangements as may be amounts on such dates to be paid to each
approved by the court or creditors. (FRIA, RA and every creditor) will follow the priority
10142, Sec. 4[ii]) established under the provisions of the Civil
Code on concurrence and preference of
Q: What are the minimum contents of the
credits and other applicable laws;
rehabilitation plan?
1. Specify the underlying assumptions, the 10. Maintain the security interest of secured
financial goals and procedures proposed to creditors and preserve the liquidation value
accomplish these goals, including the of the security unless this has been waived
duration and coverage of the rehabilitation; or modified voluntarily;
2. Contain a liquidation analysis setting out 11. Include relevant foreign ownership limits or
for each creditor or each class of creditor, information, if any;
as applicable, the amounts they expect to 12. Disclose all payments to creditors for pre-
receive under the Rehabilitation Plan and commencement debts made during the
those that they will receive if liquidation proceedings and the justifications for these
ensues within one hundred twenty (120) payments;
days after the filing of the petition; 13. Describe the disputed claims and the
3. Contain information sufficient to give the provisioning of funds to account for
various classes of creditors a reasonable appropriate payments should the claim be
basis for determining whether supporting ruled valid or its amount adjusted;
the Plan is in their financial interest when 14. Identify the debtor's role in the
compared to the immediate liquidation of implementation of the Rehabilitation Plan;
the debtor, including any reduction of 15. State any rehabilitation covenants of the
principal interest and penalties payable to debtor, whose breach shall be considered
the creditors; a material breach of the Rehabilitation
4. Establish classes of voting creditors; Plan;
16. Identify those responsible for the future
management of the debtor and the

supervision and implementation of the informed decision on the feasibility of the

Rehabilitation Plan, their affiliation with the Rehabilitation Plan.
debtor and their remuneration;
17. Address the treatment of claims arising NOTE: Rehabilitation plan should be genuine and
after the confirmation of the Rehabilitation made in good faith. (Philippine Bank of
Communications v. Basic Polyprinters and
Plan;
Packaging Corporation, G.R. No. 187581, 2014)
18. Require the debtor and its counter-parties
to adhere to the terms of all contracts that Q: What is the purpose of the liquidation
the debtor has chosen to confirm; analysis?
19. Arrange for the payment of all outstanding A: The failure to include a liquidation analysis in the
administrative expenses as a condition to rehabilitation plan would not allow the Court to
the Rehabilitation Plan's approval unless “properly determine whether its creditors could
recover by way of the present value of the payments
such condition has been waived in writing
projected in the plan than if the assets were to be
by the creditors concerned; sold by a liquidator.” (MTV Klinika Health Spa Inc. v.
20. Arrange for the payment of all outstanding BDO Leasing and Finance, Inc., G.R. No. 216123,
taxes and assessments, or an adjusted 2017)
amount pursuant to a compromise
settlement with the BIR or other applicable Q: What are the contents of the liquidation
tax authorities; analysis?
A: The liquidation analysis may include the
21. Include a certified copy of a certificate of tax following:
clearance or evidence of a compromise ● Total liquidation assets;
settlement with the BIR; ● Estimated liquidation return to the creditors;
22. Include a valid and binding resolution of a ● Fair market value vis-à-vis the forced
meeting of the debtor's stockholders to liquidation value of the fixed assets. (Land
increase the shares by the required amount Bank of the Philippines v. Fastech Synergy
in cases where the Rehabilitation Plan Philippines, Inc., G.R. No. 206150, 2017)
contemplates an additional issuance of
shares by the debtor; Q: What is the purpose of the Material Financial
23. State the compensation and status, if any, Commitment in a Rehabilitation Plan?
of the rehabilitation receiver before and A: A material financial commitment becomes
after the approval of the Rehabilitation significant in gauging the resolve, determination,
earnestness and good faith of the distressed
Plan;
corporation in financing the proposed rehabilitation
24. Contain provisions for conciliation and plan.
mediation as a prerequisite to court
assistance or intervention; This commitment may include the voluntary
25. Include material financial undertakings undertakings of the stockholders or the would-be
or commitments to support the investors of the debtor-corporation indicating their
Rehabilitation Plan; readiness, willingness, and ability to contribute
funds or property to guarantee the continued
26. Contain provisions for monitoring the
successful operation of the debtor-corporation
implementation of the Rehabilitation Plan, during the period of rehabilitation. (Land Bank of the
including, requiring the rehabilitation Philippines v. Fastech Synergy Philippines, Inc.,
receiver and/or debtor to make reports from G.R. No. 206150, 2017)
time to time;
27. Contain the manner of its implementation, Q: Provide a consideration of creditors, future
giving due regard to the interests of investors, or the general public in the material
financial commitment in a rehabilitation plan.
secured creditors such as the non-
A: The submitted commitments by the corporation
impairment of their security liens or must not be identical to another corporation’s
interests; and commitment. Submitting identical commitments
28. Contain such other relevant information to pertaining to their respective rehabilitation plan
enable a reasonable investor to make an negates firm assurances that could convince
creditors, future investors and the general public of

its financial and operational viability. (Philippine Q: What is an indicator of a rehabilitation plan
Bank of Communications v. Basic Polyprinters and that has the sole purpose of delaying
Packaging Corporation, G.R. No. 187581,2014) enforcement of the rights of the creditors?
A: If it has the characteristics of an infeasible
Q: When will a rehabilitation plan be denied? rehabilitation plan. (Land Bank of the Philippines v.
1. Non-compliance with the rules Fastech Synergy Philippines, Inc., G.R. No. 206150,
It is well to emphasize that the remedy of 2017)
rehabilitation should be denied to corporations that
do not qualify under the Rules. (Land Bank of the Q: Characteristics of an economically feasible
Philippines v. Fastech Synergy Philippines, Inc., and infeasible rehabilitation plan?
G.R. No. 206150, 2017) A: The characteristics of a feasible rehabilitation
plan are the following:
2. Sole purpose of the rehabilitation plan is (a) The debtor has assets that can generate
to delay enforcement of the rights of the more cash if used in its daily operations
creditors (bad faith) than if sold;
Neither should it be allowed to corporations whose (b) Liquidity issues can be addressed by a
sole purpose is to delay the enforcement of any of practicable business plan that will generate
the rights of the creditors. (Land Bank of the enough cash to sustain daily operations;
Philippines v. Fastech Synergy Philippines, Inc., (c) The debtor has a definite source of
G.R. No. 206150, 2017)
financing for the proper and full
3. Test of Economic Feasibility implementation of a Rehabilitation Plan that
If the results of such examination and analysis show is anchored on realistic assumptions and
that there is a real opportunity to rehabilitate the goals.
corporation in view of the assumptions made and
financial goals stated in the proposed rehabilitation The characteristics of an infeasible rehabilitation
plan, then it may be said that a rehabilitation is plan are the following:
feasible. (a) The absence of a sound and workable
business plan;
On the other hand, if the results of the financial (b) Baseless and unexplained assumptions,
examination and analysis clearly indicate that there targets and goals;
lies no reasonable probability that the distressed
(c) Speculative capital infusion or complete
corporation could be revived and that liquidation
would, in fact, better subserve the interests of its lack thereof for the execution of the
stakeholders, then it may be said that a business plan;
rehabilitation would not be feasible. (Land Bank of (d) Cash flow cannot sustain daily operations;
the Philippines v. Fastech Synergy Philippines, Inc., and
G.R. No. 206150, 2017) (e) Negative net worth and the assets are near
full depreciation or fully depreciated (Viva
4. Failure to ensure the closest present
Shippings Lines v. Keppel Philippines
value recovery for the creditors
Mining, G.R. No. 177382, 2016)
Due to the suspension of payments and the
changing value of money, it would be unfair if the
creditor merely receives the face value of the debt CREDITOR APPROVAL AND CONFIRMATION
by the time the creditor is paid. Present value of the Q: How is the rehabilitation plan approved?
credit takes into account the interest that the A: Within 20 days from notice to creditors and
amount of money would have earned if the stakeholders, the creditors shall be convened for
creditor were paid on time. purposes of voting on the approval of the
Rehabilitation Plan. The Plan shall be deemed
Trial courts must ensure that the projected cash flow rejected unless approved by all classes of
from a business' rehabilitation plan allows for the creditors. (FRIA, RA 10142, Sec. 64)
closest present value recovery for its creditors. If
the projected cash flow is realistic and allows The Plan is deemed to have been approved by a
the corporation to meet all its obligations, then class of creditors if members of the said class
courts should favor rehabilitation over holding more than 50% of the total class vote in
liquidation. (Viva Shippings Lines v. Keppel favor of the plan (FR Rules, Rule 2, Sec. 62)
Philippines Mining, G.R. No. 177382, 2016)

Q: What is the procedure for the determination Amounts of any indebtedness or obligations
of claims? reduced or forgiven in connection with a Plan's
A: The rehabilitation receiver shall notify the court, approval shall not be subject to any tax. (FR
the creditors or creditors' committee and the Rules, Rule 2, Sec. 69)
stakeholders of the approval or rejection of the
Rehabilitation Plan within five (5) days from the date Q: What must the rehabilitation receiver do if the
of such voting. (FR Rules, Rule 2, Sec. 62) rehabilitation plan is approved?
A: The rehabilitation receiver shall submit the
Q: Can the court still confirm the rehabilitation approved Plan to the court for confirmation. Within
plan if it has been rejected? five (5) days from receipt of the Rehabilitation Plan,
A: General Rule: No. the court shall notify the creditors that the
Exception: Notwithstanding the rejection of the Rehabilitation Plan has been submitted for
Rehabilitation Plan, the court may, motu proprio or confirmation; that any creditor may obtain copies of
upon motion of any interested party within ten (10) the Rehabilitation Plan; and that any creditor may
days from notice of the rejection of the Rehabilitation file an objection thereto. (FR Rules, Rule 2, Sec. 63)
Plan, confirm the Plan if all of the following
circumstances are present: Q: Upon receiving the notice that the
1. The Rehabilitation Plan complies with the rehabilitation plan has been submitted for
requirements specified in the FRIA and the confirmation, can the creditors object to the
FR Rules; confirmation?
A: Yes. A creditor may file a verified opposition
2. The rehabilitation receiver recommends the
containing its written objections to the Rehabilitation
confirmation of the Rehabilitation Plan; Plan accompanied by affidavits and supporting
3. The shareholders, owners or partners of documents within twenty (20)-days from receipt of
the juridical debtor lose at least their notice from the court that the Rehabilitation Plan has
controlling interest as a result of the been submitted for confirmation. (FR Rules, Rule 2,
Rehabilitation Plan; and Sec. 64)
4. The Rehabilitation Plan would likely provide
Q: What are the grounds for objection?
the objecting class of creditors with
1. The creditors’ support was induced by
compensation, which has a net present
fraud;
value greater than that which they would
2. The documents or data relied upon in the
have received if the debtor were under
Rehabilitation Plan are materially false or
liquidation. (FR Rules, Rule 2, Sec. 62)
misleading; or
3. The Rehabilitation Plan is in fact not
NOTE: This is what is referred as the “Cram
down power” supported by the voting creditors. (FR
Rules, Rule 2, Sec. 64)
Q: Is the rehabilitation receiver’s report binding
on the Court? Q: When shall the court confirm the order?
A: Although it may consider the rehabilitation A: The court shall issue an order confirming the
receiver's report favorably recommending the Rehabilitation Plan in any of the following instances:
rehabilitation of the debtor, the Court is not bound (a) No objections are filed within the twenty
by the receiver’s report if rehabilitation, in its (20)-day period from receipt of notice from
judgment, will not be viable. (MTV Klinika Health the court that a Rehabilitation Plan has
Spa Inc. v. BDO Leasing and Finance, Inc.,G.R. No. been submitted to court;
216123, 2017)
(b) court finds the objections lacking in merit;
Q: What is the effect of the approval of a (c) The basis for the objection has been cured;
rehabilitation plan? or
A: The approval of the Rehabilitation Plan shall not (d) The debtor has complied with the order to
affect the rights of creditors to pursue separate cure the objection. (FR Rules, Rule 2, Sec.
actions against general partners of a partnership 66)
to the extent they are liable under relevant
legislation for the debts thereof. (FR Rules, Rule 2,
The order confirming the Rehabilitation Plan shall
Sec. 68)
specify the portions approved by the court and the
portions rejected during consideration or cured by

the rehabilitation receiver. (FR Rules, Rule 2, Sec.

66) Note: This applies for the confirmation for the
rehabilitation plan arising from all kinds of
Q: What are factors that do NOT affect the rehabilitation proceedings
decision of the court to confirm the order?
A: The court may confirm the Rehabilitation Plan Q: What happens when a creditor fails to include
notwithstanding unresolved disputes over bring up their claims during the proceedings?
claims if the Rehabilitation Plan has made adequate A: A creditor whose claim is not listed in the
provisions for paying such claims. schedule of debts and liabilities and who fails to file
a notice of claim in accordance with the
The court shall have the power to approve or Commencement Order but subsequently files a
implement the Rehabilitation Plan despite the lack belated claim shall not be entitled to participate in
of approval, or objection from the owners, the rehabilitation proceedings but shall be entitled to
partners or stockholders of the insolvent debtor: receive distributions arising therefrom. (FRIA, R.A.
provided, that the terms thereof are necessary to R.A. 10142, Sec. 23)
restore the financial well-being and viability of the
insolvent debtor. (FR Rules, Rule 2, Sec. 66) FAILURE OF REHABILITATION
Q: When is there a failure of rehabilitation?
Q: What are factors that do affect the decision of 1. Dismissal of the petition by the court;
the court to confirm the order? 2. Failure to submit a Rehabilitation Plan;
A: If the court finds that there is no substantial
3. A Rehabilitation Plan is not confirmed by
likelihood that the debtor can be rehabilitated, it shall
not confirm the Rehabilitation Plan and, instead, the court;
declare a failure of rehabilitation. (FR Rules, Rule 2, 4. Under the Rehabilitation Plan submitted by
Sec. 66) the debtor, there is no substantial likelihood
that the debtor can be rehabilitated within a
Q: What are the effects of the confirmation of the reasonable period based on the
rehabilitation plan? requirements of Section 21 of the Act;
1. The Plan and its provisions shall bind the
5. The Rehabilitation Plan or its amendment is
debtor and all persons who may be affected
approved by the court but in the
thereby, including the creditors, whether or
implementation thereof, the debtor fails to
not such persons have participated in the
perform its obligations thereunder (or has
proceedings or opposed the Plan or
committed a breach of the terms of the
whether or not their claims have been
Plan) or there is a failure to realize the
scheduled;
objectives, targets or goals set forth
2. The debtor shall comply with the provisions
therein, including the timelines and
of the Plan and shall take all actions
conditions for the settlement of the
necessary to carry them out;
obligations due to the creditors and other
3. Payments shall be made to the creditors in
claimants;
accordance with the provisions of the Plan;
6. Determination that the Rehabilitation Plan
4. Contracts and other arrangements
may no longer be implemented in
between the debtor and its creditors shall
accordance with its terms, conditions,
remain valid and continue to apply to the
restrictions, or assumptions;
extent that they do not conflict with the
7. There is a finding that fraud was committed
provisions of the Plan;
in securing the approval of the
5. Any compromises on amounts or
Rehabilitation Plan or its amendment;
rescheduling of timing of payments by the
8. In cases falling under Section 65 of this
debtor shall be binding on the creditors
Rule, where, after finding merit in the
regardless of whether or not the Plan is
objection/s raised against the confirmation
successfully implemented; and
of the Rehabilitation Plan, the defect is not
6. Claims arising after the approval of the Plan
cured within such time as the court may
that are otherwise not treated by the Plan
order, or if the court determines that the
are not subject to any Suspension Order.
debtor acted in bad faith, or that it is not
(FR Rules, Rule 2, Sec. 67)
feasible to cure the defect; and

9. Failure of the debtor to comply with these other than technical grounds, the proceedings shall
Rules, the Rules of Court, or any order of be immediately converted to liquidation
the court. (FR Rules, Rule 2, Sec. 73) proceedings. (FR Rules, Rule 2, Sec. 74)
Q: What are the remedies to a breach of the PRE-NEGOTIATED REHABILITATION

rehabilitation plan or failure of rehabilitation? Q: Who files the petition for the approval of the
A: Upon a breach of, or failure of the Rehabilitation pre-negotiated rehabilitation plan?
Plan, the court, upon motion by an affected party, A: An insolvent debtor, by itself or jointly with any of
and after hearing, may: its creditors
1. issue an order directing that the breach be
cured within a specified period of time, The petition must be supported by a an affidavit
showing the written approval/endorsement by:
failing which the proceedings may be
(a) Creditors holding at least 2/3 of total
converted to liquidation proceedings;
liabilities of the debtor;
2. issue an order converting the proceedings
(b) Secured creditors holding more than 50%
to liquidation proceedings;
of total secured claims; and
3. allow the debtor or rehabilitation receiver to (c) Unsecured creditors holding more than
submit amendments whose approval shall 50% of total unsecured claims (FRIA, RA
be governed by the same requirements for 10142, Sec. 76,)
creditor approval and court confirmation of
a Rehabilitation Plan; Q: What are the minimum contents of a pre-
4. issue any other order to remedy the breach negotiated rehabilitation plan?
consistent with the [FRIA] and [FR Rules], A: The petition shall include as a minimum:
other applicable law and the best interests 1. Schedule of the debtor's debts and
of the creditors; or liabilities;
5. enforce the applicable provisions of the 2. Inventory of the debtor's assets;
Rehabilitation Plan through a writ of 3. The pre-negotiated Rehabilitation Plan,
execution. (FR Rules, Rule 2, Sec. 72) including the names of at least 3 qualified
nominees for rehabilitation receiver; and
Q: How are rehabilitation proceedings 4. Summary of disputed claims against the
terminated? debtor and a report on the provisioning of
A: At any time from the filing of the petition, any funds to account for appropriate payments
interested party or the rehabilitation receiver may file should any such claims be ruled valid or
a motion for the termination of the proceedings.
their amounts adjusted. (FRIA, RA 10142,
After hearing the motion, the court may order the Sec. 76)
proceedings terminated by either declaring a
successful implementation of the Rehabilitation Q: What happens after the pre-negotiated
Plan or a failure of rehabilitation. (FR Rules, Rule 2, rehabilitation plan is deemed sufficient?
Sec. 73) A: Within five (5) working days, and after
determination that the petition is sufficient in form
Q: What is the effect of the termination of the and substance, the court shall issue an Order which
proceedings? shall:
A: Termination of the proceedings shall result in the 1. Identify the debtor, its principal business of
following: activity/ies and its principal place of
1. the discharge of the rehabilitation receiver business;
subject to his submission of a final 2. Declare that the debtor is under
accounting; and rehabilitation;
2. the lifting of the Stay Order and any other 3. Summarize the grounds for the filling of the
court order holding in abeyance any action petition;
for the enforcement of a claim against the 4. Direct the publication of the Order in a
debtor. (FR Rules, Rule 2, Sec. 74) newspaper of general circulation in the
Philippines once a week for at least 2
If the termination of proceedings is due to failure of consecutive weeks, with the first
rehabilitation or dismissal of the petition for reasons

publication to be made within 7 days from b. Majority of any class of creditors do not in
the time of its issuance; fact support the Rehabilitation Plan;
5. Direct the service by personal delivery of a c. The Rehabilitation Plan fails to accurately
copy of the petition on each creditor who is account for a claim against the debtor and
not a petitioner holding at least 10% of the the claim in not categorically declared as a
total liabilities of the debtor, as determined contested claim; or
in the schedule attached to the petition, d. Support of the creditors, or any of them was
within 3 days; induced by fraud.
6. State that copies of the petition and the
Rehabilitation Plan are available for Q: Who shall receive the copies of the objection
examination and copying by any interested to the rehabilitation plan?
A: Copies of any objection to the petition of the
party;
Rehabilitation Plan shall be served on
7. State that creditors and other interested 1. the debtor,
parties opposing the petition or 2. the rehabilitation receiver (if applicable),
Rehabilitation Plan may file their objections 3. the secured creditor with the largest claim
or comments thereto within a period of not and who supports the Rehabilitation Plan,
later than 20 days from the second and
publication of the Order; 4. the unsecured creditor with the largest
8. Appoint a rehabilitation receiver, if provided claim and who supports the Rehabilitation
for in the Plan; and Plan. (FRIA, RA 10142, Sec. 79)
9. Include a Suspension or Stay Order as
described in the FRIA. (FRIA, RA 10142, Q: What is the procedure for pre-negotiated
Sec. 77) rehabilitation? (SUMMARY)
1. Filing of the petition by debtor (FR Rules,
Q: Is the approval of a sufficient pre-negotiated Rule 3, Sec. 1)
rehabilitation plan required? 2. Issuance of Court Order (FR Rules, Rule 3,
A: Yes, but only if there are no objections within the Sec. 2)
period provided by law.
3. Publication of Order and Notification of
If no verified objection to the petition or the Creditors (FR Rules, Rule 3, Sec. 2)
Rehabilitation Plan is filed within eight (8) days from 4. Verified Objection to the petition or
the date of the second publication of the Order Rehabilitation Plan (FR Rules, Rule 3, Sec.
provided in the preceding section, the court shall 5)
approve the rehabilitation plan within ten (10) days 5. Comments (FR Rules, Rule 3, Sec. 6)
from the date of the second publication of such
6. Hearing on Objections (FR Rules, Rule 3,
order. (FR Rules, Rule 3, Sec. 4)
Sec. 7)
Q: When shall the approved pre-negotiated 7. Approval of the Plan (FR Rules, Rule 3,
rehabilitation plan be implemented? Sec. 4)
A: The approved rehabilitation plan shall not be
implemented until after the lapse of twenty (20)-days PERIOD AND EFFECT OF APPROVAL
from the date of the second publication of the Order, Q: What is the period for approval?
unless the court conducts a hearing to consider the A: The court shall have a maximum period of one
objections and comments filed within twenty (20)- hundred twenty (120) days from the filing of the
days from the date of the second publication of the petition to approve or disapprove the Pre-
Order. Negotiated Rehabilitation Plan.
Q: What are the grounds for objection? If the court fails to so act within the said period, the
A: The grounds for objection are limited to the Pre-Negotiated Rehabilitation Plan shall be deemed
following: approved.
a. Allegations in the petition or the
Rehabilitation Plan or the attachments In such a case, the court shall certify that no action
thereto are materially false or misleading; has been made within the one hundred twenty
(120)-day period and the Pre-Negotiated Plan is
deemed approved. (FR Rules, Rule 3, Sec. 8)

a. 85% of total liabilities, secured and

Q: What is the effect of the approval of a pre- unsecured, of the debtor;
negotiated rehabilitation plan? b. 67% of secured obligations of the
A: Pre-Negotiated Rehabilitation Plans, when
debtor; and
approved by the court, have the same legal effect as
confirmation of a judicially supervised plan. (FRIA, c. 75% of unsecured obligations of
RA 10142, Sec. 82) the debtor; (FRIA, RA 10142, Sec.
84) and
Q: Compare the periods in court-supervised and 3. Publication of the notice of the OCRA once
pre-negotiated rehabilitation a week for at least three (3) consecutive
weeks in a newspaper of general
COURT PRE- circulation in the Philippines. (FR Rules,
SUPERVISED NEGOTIATED Rule 4, Sec. 1)
REHABILITATION REHABILITATION
STANDSTILL PERIOD
PERIOD OF 20 days from the 120 days from Q: What is a Standstill period?
APPROVAL date of the filing of the A: A Standstill period is the period agreed upon by
notification to petition (max) the debtor and its creditors to enable them to
creditors and (FR Rules, Rule negotiate and enter into an OCRA. The standstill
stakeholders for 3, Sec. 8) agreement may include provisions identical with or
examination of similar to the legal effects of a commencement order
the Rehabilitation issued during court-supervised rehabilitation. (FR
Plan (FR Rules, Rules, Rule 1, Sec. 5[q])
Rule 2, Sec. 62)
Q: When can the parties enter into a Standstill
period?
EFFECT OF Submission to the Confirmation of
A: A Standstill period may be agreed upon by the
APPROVAL court for Rehabilitation parties pending negotiation and finalization of the
confirmation of Plan (FR Rules, plan. (FRIA, RA 10142, Sec. 85)
Rehabilitation Rule 3, Sec. 9)
Plan (FR Rules, Q: Who are covered by the Standstill period?
Rule 2, Sec. 66) A: A Standstill period shall cover not only the
negotiating parties but also all other creditors.
EFFECT OF Deemed Deemed (FRIA, RA 10142, Sec. 85)
NON- Rejected (FR Approved (FR
Q: What are the requirements of a Standstill
APPROVAL Rules, Rule 2, Rules, Rule 3,
period?
Sec. 62) Sec. 8) A: A Standstill period must meet the following
requirements:
OUT-OF-COURT OR INFORMAL 1. Approved by creditors representing more
RESTRUCTURING AGREEMENTS OR than 50% of total liabilities;
REHABILITATION PLANS 2. Notice is published in a newspaper of
general circulation in the Phils. once a week
MINIMUM REQUIREMENTS for 2 consecutive weeks; and
Q: What are the minimum requirements for an 3. Standstill period does not exceed 120 days
Out-of-Court or Informal Restructuring from date of effectivity (FRIA, RA 10142,
Agreement or Rehabilitation Plan? Sec. 85)
A: An out-of-court or informal restructuring/workout
agreement or rehabilitation plan (OCRA) must
comply with the following requirements: CRAM DOWN EFFECT
1. The debtor must agree to the out-of-court Q: What is the Cram down power of the Court?
A: The power of the rehabilitation court to approve
or informal restructuring/workout
and implement a rehabilitation plan notwithstanding
agreement or Rehabilitation Plan; the objection of the majority of creditors. The “cram-
2. Must be approved by creditors representing down” clause is necessary to curb the majority
at least: creditors’ natural tendency to dictate their own terms
and conditions to the rehabilitation, absent due

regard to the greater long-term benefit of all 2. Certificate attesting to the holding of a
stakeholders. Otherwise stated, it forces the meeting of the stockholders, members or
creditors to accept the terms and conditions of the partners comprising the debtor, as the case
rehabilitation plan, preferring long-term viability over
may be, called for the purpose and the
immediate but incomplete recovery. (Bank of the
Philippine Islands vs. Sarabia Manor Hotel approval during the meeting of a resolution
Corporation, GR No. 175844, 2013) to file the petition by the stockholders
holding at least two-thirds (2/3) of the
C. LIQUIDATION outstanding capital stock of the stock
corporation, or two-thirds (2/3) of the
VOLUNTARY LIQUIDATION VS. INVOLUNTARY members or partners in case of a non-stock
LIQUIDATION VS. CONVERSION corporation, association or partnership, as
the case may be, signed by the chairman
VOLUNTARY LIQUIDATION FILED BY and the secretary of the meeting
JURIDICAL DEBTORS
3. Schedule of the debtor's debts and
Q: Who may file an application for voluntary liabilities including a list of creditors with
liquidation? their addresses, amounts of claims and
A: An insolvent debtor may apply for liquidation by collaterals, or securities, if any;
filing a petition for liquidation (FLSP, Rule 2, Sec. 1) 4. Inventory of all its assets including
receivables and claims against third
Q: Where must the application for voluntary parties; and
liquidation be filed?
5. Schedule of current income and
A: General Rule: RTC which has jurisdiction over
its principal office as specified in its articles of expenditures within three (3) months prior
incorporation or partnership. Where the principal to the filing of the petition;
office of the corporation or partnership as registered 6. List of all properties acquired by the debtor
with the Securities and Exchange Commission in the immediately preceding two (2) years;
(SEC) is in Metro Manila, the petition must be filed 7. List of all properties sold, disposed of, or
in the RTC Court of the city or municipality where donated by the debtor in the immediately
the head office is located. (FLSP, Rule 2, Sec. 1)
preceding two (2) years;
Exception: Motion for conversion from 8. Schedule of the debtor's executory
rehabilitation to liquidation (FLSP, Rule 2, Sec. 2) contracts and unexpired leases;
9. Audited financial statements of the debtor
Q: What are the minimum requirements for the for the immediately preceding three (3)
contents of the petition for voluntary years; and
liquidation?
10. Income tax return of the debtor for the
A: The petition shall be verified, shall establish the
insolvency of the debtor and shall indicate the immediately preceding year (FLSP, Rule 2,
names of at least 3 nominees to the position of Sec. 1)
liquidator.
Q: What action must the court take upon receipt
It shall include, as minimum attachments, the of the petition?
following: A: If the court finds the petition or motion, as the
1. Certificate attesting to the holding of a case may be, to be sufficient in form and substance,
meeting of the Board of Directors of a stock it shall issue the Liquidation Order. Otherwise, the
corporation or the Board of Trustees of a court shall dismiss the petition or deny the motion.
(FLSP Rules, Rule 2, Secs. 3)
non-stock corporation, as the case may be,
called for the purpose and the approval
VOLUNTARY LIQUIDATION FILED BY
during the meeting of a resolution to file the INDIVIDUAL DEBTORS
petition, signed by the secretary of the Q: Who may file an application for voluntary
meeting and at least a majority of the liquidation?
members of the Board present during the A: An individual debtor whose properties are not
meeting; sufficient to cover his liabilities, and owing debts
exceeding Php500,000.00, may apply to be
discharged from his debts and liabilities by filing a

verified petition with the court of the province or city in the RTC Court of the city or municipality where
in which he has resided for 6 months prior to the the head office is located.
filing of such petition. (FLSP Rules, Rule 3, Sec. 11)
Exception: Motion for conversion from
Q: What are the minimum requirements for the rehabilitation to liquidation. (FLSP Rules, Rule 2,
contents of the petition for voluntary Sec. 6)
liquidation?
A: The petition shall indicate the names of at least 3 Q: What are the minimum requirements for the
nominees to the position of commissioner and shall contents of the petition for involuntary
include, as minimum attachments, the following: liquidation?
1. Schedule of debts and liabilities, including A: The motion shall be verified, shall indicate the
a list of creditors with their addresses, names of at least 3 nominees to the position of
amount of claims and collaterals, if any; liquidator, and must show that:
(a) There is no genuine issue of fact or law on
2. Inventory of all the debtor's assets,
the claims/s of the petitioner/s, and that the
including receivables and claims against
third parties; due and demandable payments thereon
have not been made for at least one
3. Schedule of current income and
hundred eighty (180) days or that the
expenditures within three (3) months prior
debtor has failed generally to meet its
to the filing of the petition;
liabilities as they fall due; and
4. Income tax return of the debtor for the
(b) There is no substantial likelihood that the
immediately preceding year;
debtor may be rehabilitated (FRIA, RA
5. List of all properties acquired by the debtor
10142, Sec. 91)
in the immediately preceding two (2) years;
6. List of all properties sold, disposed of, or
The petition shall also include information to the best
donated by the debtor in the immediately knowledge of the petitioners on:
preceding two (2) years; and (a) The schedule of debts and liabilities,
7. Schedule of the debtor's executory including a list of its known creditors with
contracts and unexpired leases (FLSP their addresses, amounts of claims and
Rules, Rule 3, Sec. 11) collaterals, or securities, if any;
(b) The debtor's assets, including receivables
Q: What action must the court take upon receipt and claims against third parties; and
of the petition?
(c) Audited financial statements of the debtor
A: If the court finds the petition sufficient in form and
substance it shall, within five (5) working days issue for the immediately preceding three (3)
the Liquidation Order (FLSP Rules, Rule 3, Sec. 12) years. (FLSP Rules, Rule 2, Sec. 4)
INVOLUNTARY LIQUIDATION – FILED Q: Is there a bond requirement for involuntary

JURIDICAL DEBTORS liquidation?
Q: Who may file an application for involuntary A: YES. The petitioners shall post a bond in an
liquidation? amount at least equal in value to the aggregate of
A: The applicants must be 3 or more creditors their claims, conditioned upon payment to the debtor
whose claim(s) is/are: of all expenses and damages it may incur by reason
(a) At least P1,000,000.00; or of the filing of the petition if the same is later denied
(b) At least 25% of the subscribed capital stock or dismissed by the court, or withdrawn by the
petitioners without the consent of the debtor. (FLSP
or partners’ contributions (FLSP Rules,
Rule 2, Sec. 4)
Q: What action must the court take upon receipt
Q: Where must the application for involuntary of the petition?
liquidation be filed? A: If the court finds the petition or motion sufficient
A: General Rule: RTC which has jurisdiction over in form and substance, it shall issue an order:
its principal office as specified in its articles of (a) directing the publication of the petition or
incorporation or partnership. Where the principal motion in a newspaper of general
office of the corporation or partnership as registered
circulation in the Philippines once a week
with the Securities and Exchange Commission
(SEC) is in Metro Manila, the petition must be filed for two (2) consecutive weeks;

(b) directing the debtor, all known creditors, 3. He conceals himself to avoid the service of
and any other interested party, to file their legal process for the purpose of hindering
comment on the petition or motion within or delaying the liquidation or of defrauding
fifteen (15) days from notice of the order; his creditors;
and 4. He conceals, or is removing, any of his
(c) directing that a copy of the petition or property to avoid its being attached or taken
motion be served on the debtor and on all on legal process;
known creditors, unless they exceed twenty 5. He has suffered his property to remain
(20) in number, in which case, service shall under attachment or legal process for 3
be made on at least the first twenty (20) days for the purpose of hindering or
largest known creditors of the debtor in delaying the liquidation or of defrauding his
terms of credits held. However, if there are creditors;
more than twenty (20) known creditors 6. He has confessed or offered to allow
(who are not petitioners) and one or more judgment in favor of any creditor or claimant
of them acquired their credit/s within the six for the purpose of hindering or delaying the
(6)-month period immediately preceding liquidation or of defrauding any creditors or
the filing of the petition, the number of claimant;
creditors to be served copies of the petition 7. He has willfully suffered judgment to be
shall be increased by the same number. taken against him by default for the purpose
(FLSP Rules, Rule 2, Sec. 7) of hindering or delaying the liquidation or of
defrauding his creditors;
Q: What action must the court take upon 8. He has suffered or procured his property to
determination that the petition is sufficient in be taken on legal process with intent to give
form and substance?
a preference to one or more of his creditors
A: The court shall conduct a hearing if the petition
or motion, as well as the comments thereto raise and thereby hinder or delay the liquidation
issues of facts. On the basis of the pleadings and or defraud any one of his creditors;
the hearing conducted, if any, the court shall 9. He has made any assignment, gift, sale,
determine whether the evidence is sufficient to conveyance or transfer of his estate,
warrant the issuance of a Liquidation Order. property, rights or credits with intent to
Otherwise, the court shall dismiss the petition or hinder or delay the liquidation or defraud his
deny the motion. (FLSP Rules, Rule 2, Sec. 8)
creditors;
10. He has, in contemplation of insolvency,
INVOLUNTARY LIQUIDATION – FILED BY
INDIVIDUAL DEBTORS made any payment, gift, grant, sale,
Q: Who may file an application for involuntary conveyance or transfer of his estate,
liquidation? property, rights or credits;
A: Any creditor or group of creditors with a claim of, 11. Being a merchant or tradesman, he has
or with claims aggregating at least Php500,000.00 generally defaulted in the payment of his
may file a verified petition for liquidation. (FLSP current obligations for a period of 30 days;
12. For a period of 30 days, he has failed, after
Q: What are other requirements to be included demand, to pay any moneys deposited with
in a petition? him or received by him in a fiduciary; and
A: The following shall be considered acts of 13. An execution having been issued against
insolvency, and the petition for liquidation shall set him on final judgment for money, he shall
forth or allege at least one of such acts: have been found to be without sufficient
1. Such person is about to depart or has property subject to execution to satisfy the
departed from the Republic of the judgment. (FLSP Rules, Rule 3, Sec. 13)
Philippines, with intent to defraud his
creditors; Q: What action must the court take upon receipt
2. Being absent from the Republic of the of the petition?
Philippines, with intent to defraud his A: If the petition is sufficient in form and substance,
creditors, he remains absent; the court, within five working (5) days from the filing

of the petition, shall issue summons to the debtor proceedings by filing a motion in the same
requiring him, by way of comment on or opposition court where the rehabilitation proceedings
to the petition within an inextendible period of fifteen are pending to convert the rehabilitation
(15) days from service of the summons, to show
proceedings into liquidation proceedings.
cause why he should not be declared insolvent.
(FLSP Rules, Rule 3, Sec. 15) 5. At any other time upon the
recommendation of the rehabilitation
After this, the court shall set the petition for hearing receiver that the rehabilitation of the debtor
in order to determine whether the evidence is is not feasible.
sufficient to warrant the issuance of a Liquidation
Order. (FLSP Rules, Rule 3, Sec. 17) Q: What action must the court take upon receipt
of the petition?
Q: What action can the creditor take to protect A: For Voluntary Liquidation: If the Court finds the
their interests during the proceedings? petition sufficient in form and substance, it shall,
A: Upon motion of any creditor and after hearing, issue the Liquidation Order (FLSP Rules, Rule 2,
the court may, upon good cause shown, issue an Secs. 3;, Rule 3, Sec. 12)
order prohibiting the debtor from paying any of his
debts, or from transferring any property belonging to For involuntary Liquidation: causing notice to
him, until the court issues a Liquidation Order or interested parties, for juridical debtors (FLSP Rules,
dismisses the petition, whichever is earlier. Rule 2, Sec. 7), or issuing summons to the individual
However, nothing contained herein shall affect or debtor (FLSP Rules, Rule 3, Sec. 15). These are
impair the rights of a secured creditor to enforce his acts preparatory for the hearing to determine if the
lien in accordance with its terms. (FLSP Rules, Rule evidence is sufficient to warrant the issuance of a
3, Sec. 16) Liquidation Order. (FLSP Rules, Rule 2, Sec. 8;
Rule 3, 17)
PROCEDURE
Q: When can a court convert the proceedings Q: Provide a summary of the procedure for
from rehabilitation to liquidation? liquidation
A: During the pendency of court-supervised or pre- 1. Filing of Petition
negotiated rehabilitation proceedings, the court may 2. Issuance of Court Order
order the conversion of rehabilitation proceedings to 3. Publication of Petition and Notification of
liquidation proceedings pursuant to:
Parties
1. Section 25(c) of the FRIA (upon receipt of
4. Filing of Comments
the report of the rehabilitation receiver)
5. Hearing on the petition or motion
which states that conversions can be done
6. Issuance of Liquidation Order
when the debtor is insolvent and there is no
7. Publication of Liquidation Order
substantial likelihood for the debtor to be
8. Hearing
successfully rehabilitated; or
9. Appointment of Liquidator (FLSP Rules,
2. Section 72 of the FRIA or if no
Rule 4, Sec. 9-10)
Rehabilitation Plan is confirmed within 1
10. Registry of Claims (FLSP Rules, Rule 4,
year from the date of the filing of a petition
Sec. 17)
to confirm the rehabilitation plan, the
11. Opposition or challenge to claims (FLSP
proceedings may, upon motion or motu
Rules, Rule 4, Sec.19)
proprio, be converted into one for the
12. Submissions of disputed claims to court
liquidation of the debtor; or
(FLSP Rules, Rule 4, Sec. 20)
3. Section 75 of the FRIA or if termination of
13. Submission of Liquidation Plan (FLSP
proceedings is due to failure of
rehabilitation or dismissal of the petition for
14. Implementation of the Liquidation Plan
reasons other than technical grounds, the
15. Complete Implementation of Plan
proceedings shall be immediately
16. Termination of Proceedings (FLSP Rules,
converted to liquidation; or
Rule 4, Sec. 29)
4. Section 90 of the FRIA or if during the
17. Discharge of Liquidator (FLSP Rules, Rule
pendency of court-supervised or pre-
4, Sec. 16)
negotiated rehabilitation proceedings, the
debtor may also initiate liquidation

LIQUIDATION ORDER; EFFECTS 4. No separate action for the collection of an

Q: What are the contents of a Liquidation Order? unsecured claim shall be allowed. Such
A: The Liquidation Order shall: actions already pending will be transferred
1. Declare the debtor insolvent;
to the Liquidator for him to accept and settle
2. Order the liquidation of the debtor and, in
or contest. If the liquidator contests or
the case of a juridical debtor, declare it as
disputes the claim, the court shall allow,
dissolved;
hear and resolve such contest except when
3. Order the sheriff to take possession and
the case is already on appeal. In such a
control of all the property of the debtor, case, the suit may proceed to judgment,
except those that may be exempt from
and any final and executor judgment
execution;
therein for a claim against the debtor shall
4. Order the publication of the petition or
be filed and allowed in court; and
motion in a newspaper of general
5. No foreclosure proceeding shall be allowed
circulation once a week for 2 consecutive
for a period of 180 days. (FLSP Rules, Rule
weeks;
4, Sec. 3)
5. Direct payments of any claims and
conveyance of any property due the debtor Q: What happens to the rights of a secured
to the liquidator; creditor?
6. Prohibit payments by the debtor and the A: The Liquidation Order shall not affect the right of
transfer of any property by the debtor; a secured creditor to enforce his lien in accordance
7. Direct all creditors to file their claims with with the applicable contract or law, unless he waives
his right. (FLSP Rules, Rule 4, Sec. 4)
the liquidator within the period set by the
rules of procedure; Q: What are the options of a secured creditor
8. Authorize the payment of administrative when a liquidation order is made?
expenses as they become due; A: A secured creditor may:
9. State that the debtor and creditors who are (a) Waive his right under the security or lien,
not petitioner/s may submit the names of prove his claim in the liquidation
other nominees to the position of liquidator; proceedings and share in the distribution of
and the assets of the debtor; or
10. Set the case for hearing for the election and (b) Maintain his rights under the security or
appointment of the liquidator, which date lien.
shall not be less than 30 days nor more
than 45 days from the date of the last NOTE: Failure to file a manifestation means that the
publication. (FRIA, RA 10142, Sec. 112 ; secured creditor is deemed to have opted to
maintain his right under the security or lien (FLSP
FLSP Rules, Rule 4, Sec. 2)
Q: What are the effects of a Liquidation Order? Q: How can secured creditors waive their
A: Upon issuance of the Liquidation Order: rights?
1. Juridical debtor shall be deemed dissolved A: A secured creditor shall not be deemed to have
and its corporate or juridical existence waived his right under the security or lien unless the
terminated; waiver is made in a public document, in unequivocal
2. Legal title to and control of all the assets of language, and with full knowledge of the
the debtor, except those that may be consequences of his action. If a secured creditor
exempt from execution, shall be deemed waives his right, he shall be entitled to participate in
the liquidation proceedings as an unsecured
vested in the liquidator or, pending his creditor. (FLSP Rules, Rule 4, Sec. 6)
election or appointment, with the court;
3. All contracts of the debtor shall be deemed Q: What is the effect if secured creditors
terminated and/or breached, unless the maintain their rights?
liquidator, within 90 days from the date of A: If the secured creditor maintains his rights under
his assumption of office, declares the security or lien:
1. The value of the property may be fixed in a
otherwise and the contracting party agrees;
manner agreed upon by the creditor and

the liquidator. When the value of the (c) After being elected, the liquidator fails to
property is less than the claim it secures, qualify ; or
the liquidator may convey the property to (d) Vacancy occurs for any reason
the secured creditor and the latter will be whatsoever, In any of the cases provided
admitted in the liquidation proceedings as a herein, the court may instead set another
creditor for the balance. If its value exceeds hearing of the election of the liquidator.
the claim secured, the liquidator may (FLSP Rules, Rule 4, Sec. 10)
convey the property to the creditor and
waive the debtor's right of redemption upon Q: What are the qualifications of a Liquidator?
receiving the excess from the creditor; A: The liquidator shall have the same qualifications
as the rehabilitation receiver
2. Liquidator may sell the property and satisfy
the secured creditor's entire claim from the Q: Compare a liquidator from a rehabilitation
proceeds of the sale; or receiver?
3. Secure creditor may enforce the lien or
foreclose on the property pursuant to
REHABILITATION LIQUIDATOR
applicable laws. (FLSP Rules, Rule 4, Sec.
RECEIVER
7)
Preserve and maximize Preserve and
Q: What is Liquidator?
the value of the assets of maximize the value of
A: The Liquidator is a natural person or juridical
the debtor the assets of the
entity appointed as such by the court and entrusted
with such powers and duties. If the liquidator is a debtor
juridical entity, it must designate a natural person
who possesses all the qualifications and none of the Determine the viability of Recover the assets of
disqualifications as its representative, it being rehabilitation the debtor
understood that the juridical entity and the
representative are solidarity liable for all obligations
and responsibilities of the liquidator. (FLSP Rules, Preparing, Liquidating the assets
Rule 4, Sec. 8) Recommending the of the debtor; and
Rehabilitation Plan; and, Discharging the
Q: How is Liquidator elected? Implementing the claims of the debtor
A: The creditors entitled to vote will elect the approved (FLSP Rules, Rule 4,
liquidator in open court. The nominee receiving the Rehabilitation Plan (FR Sec. 12)
highest number of votes cast in terms of amount of Rules, Rule 2, Sec. 26)
claims and who is qualified shall be appointed as the
liquidator.
Q: How must a Liquidation Plan be issued?
Note that only creditors who have filed their claims A: The Liquidation Plan shall, as a minimum
within the period set by the court, and whose claims enumerate all the assets of the debtor and a
are not barred by the statute of limitations, will be schedule of liquidation of the assets and payment of
allowed to vote in the election of the liquidator. the claims. (FLSP Rules, Rule 4, Sec. 23)
A secured creditor will not be allowed to vote unless: Q: What properties are exempt from liquidation?
(a) He waives his security or lien; or A: It shall be the duty of the court, upon petition and
(b) Has the value of the property subject of his after hearing, to exempt and set apart, for the use
and benefit of the said insolvent, such real and
security or lien fixed by agreement with the
personal property as is by law exempt from
liquidator, and is admitted for the balance execution, and also a homestead.
of his claim. (FLSP Rules, Rule 4, Sec. 9)
However, no such petition shall be heard as
Q: How is Liquidator appointed? aforesaid until it is first proved that notice of the
A: The court may appoint the liquidator if: hearing of the application therefor has been duly
(a) On the date set for the election of the given by the clerk, by causing such notice to be
liquidator, the creditors do not attend; posted it at least 3 public places in the province or
(b) Creditors who attend, fail or refuse to elect city at least 10 days prior to the time of such hearing,
a liquidator; which notice shall set forth the name of the said

insolvent debtor, and the time and place appointed payments by the court of the province or city in
for the hearing of such application, and shall briefly which he has resides for six (6) months prior to the
indicate the homestead sought to be exempted or filing of his petition. (FLSP Rules, Rule 3, Sec. 1)
the property sought to be set aside; and the decree
must show that such proof was made to the Q: What action must the court take upon receipt
satisfaction of the court, and shall be conclusive of the petition?
evidence of that fact. (FRIA, R.A. 10142, Sec. 130) A: If the Court finds the petition sufficient in form and
substance, it shall, within five (5) working days from
Q: How are the rules of preference of credit the filing of the petition, issue a Suspension of
applied in liquidation proceedings? Payments Order:
A: General Rule: The Liquidation Plan and its
Implementation shall ensure that the concurrence Q: What action must the court take upon receipt
and preference of credits as enumerated in the Civil of the petition?
Code and other relevant laws shall be observed A: If the Court finds the petition sufficient in form and
substance, it shall, within five (5) working days from
Exception: unless a preferred creditor voluntarily the filing of the petition, issue a Suspension of
waives his preferred right. Payments Order: Rule 3, Sec. 3)
For purposes of this chapter, credits for services (a) prohibiting creditors from suing or
rendered by employees or laborers to the debtor instituting proceedings for collection
shall enjoy first preference under Article 2244 of the against the debtor, except:
Civil Code, unless the claims constitute legal liens
(i) creditors having claims for
under Article 2241 and 2242 thereof. (FLSP Rules,
Rule 4, Sec. 25) personal labor, maintenance,
expense of last illness and funeral
Q: What happens after completion of of the wife or children of the debtor
liquidation? incurred within sixty (60) days
A: Upon determining that the liquidation has been immediately prior to the filing of the
completed, the court shall issue an Order approving
petition; and
the report and ordering the SEC to remove the
debtor from the registry of legal entities. (ii) secured creditors;
(b) calling a meeting of all the creditors named
Upon receipt of evidence showing that the debtor in the schedule of debts and liabilities at a
has been removed from the registry of legal entities time not less than fifteen (15) days nor
at the SEC, the court shall issue an Order more than forty (40) days from the date of
terminating the proceedings. (FLSP Rules, Rule 4, such order and designating the date, time,
Sec. 29)
and place of the meeting;
Q: Is there a right to set-off in liquidation (c) directing such creditors to present written
proceedings? evidence of their claims before the
A: YES. If the debtor and creditor are mutually scheduled creditors' meeting;
debtor and creditor of each other, one debt shall be (d) directing the publication of the said order in
set off against the other and only the balance, if any, a newspaper of general circulation in the
shall be allowed in the liquidation proceedings. Philippines once a week for two (2)
consecutive weeks, with the first
D. SUSPENSION OF PAYMENTS; publication to be made within seven (7)
SUSPENSION OF PAYMENT ORDER days from the time of the issuance of the
order;
NOTE: Only for individual debtors (e) directing the clerk of court to send or cause
the sending of a copy of the order by
Q: Who may file a petition for suspension of registered mail, postage prepaid, to all
payments? creditors named in the schedule of debts
A: An individual debtor who, possessing sufficient
and liabilities;
property to cover all his debts but foreseeing the
impossibility of meeting them when they (f) prohibiting the petitioner from selling,
respectively fall due, may file a verified petition that transferring, encumbering or disposing his
he be declared in the state of suspension of property, except those used in the ordinary

operations of commerce or of industry in

which the petitioner is engaged as long as
the proceedings are pending;
(g) prohibiting the petitioner from making any
payment outside of the necessary or
legitimate expenses of his business or
industry, as long as the proceedings are
pending; and
(h) appointing a commissioner to preside over
the creditors' meeting, who may or may not
be from among the nominees of the debtor.
—end of topic—


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ATENEO CENTRAL DAY 2

BAR OPERATIONS 2022 CRIMINAL AND COMMERCIAL LAW

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TABLE OF CONTENTS: CRIMINAL LAW

I. PRINCIPLES OF CRIMINAL LAW.....................................................................................................8

A. GENERAL PRINCIPLES .............................................................................................................8

II. CRIMES UNDER THE REVISED PENAL CODE ................................................................................ 37

A. CRIMES AGAINST NATIONAL SECURITY AND THE LAWS OF NATION ......................................37

III. SPECIAL PENAL LAWS............................................................................................................... 64

A. ANTI-CHILD PORNOGRAPHY ACT OF 2009 (R.A. No. 9775) ..................................................... 64

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IV. CRIMINAL LAW PRACTICAL EXERCISES ................................................................................... 101

A. COMPLAINT IN CRIMINAL CASES ........................................................................................ 101

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I. PRINCIPLES OF CRIMINAL LAW Penalty imposed Violation of law is

Q: What is the difference between Mala In Se and —end of topic—

MALA IN SE MALA PROHIBITA 2. APPLICABILITY AND EFFECTIVITY

STAGE OF ACCOMPLISHMENT Q: What are the exceptions to the Territoriality

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A: Penal laws are not applicable within or without c. Prospectivity

FRENCH RULE ENGLISH RULE Absolute or total repeal or express repeal:

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Q: How should a penal law, which admits of two

—end of topic— b. Aberratio Ictus, Error in

1. CRIMINAL LIABILITIES AND Q: Differentiate between aberratio ictus (mistake

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identity), praeter intentionem, and ignorantia

ABERRATIO ICTUS Q: What are the requisites of an impossible

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A: X defrauded A through falsification of a public

Q: Define Plurality of Crimes. Q: What are examples of complex crimes

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Q: What are examples of special complex

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1. Self-defense a. That an order has been issued by a

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presupposes the consideration not only of the

Q: What is the battered woman syndrome?

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psychotic trends despite his calm behavior.

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Q: What is the difference between intent and

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Q: What are the kinds of aggravating and cannot be offset by mitigating

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b. The offender committed the crime in commission of an offense, it shall be

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a. There must be 2 or more principals; and • Insidious words or machinations used to

20. Employment of Fraud (fraude)

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a. The injury caused be deliberately increased

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attack is not sufficient to hold that treachery is

Q: An Information for Murder was filed against A a. Relationship;

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Q: What are the different kinds of absolutory

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