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PART I.
I. PRELIMINARY TITLE

1. When do laws take effect?

If silent as to its date of effectivity
If it provides for its own date of
effectivity
If the law provides that it shall take
effect immediately upon its approval
It takes effect after fifteen (15) days following the
completion of its publication in the Official Gazette
or in a newspaper of general circulation.
It takes effect on such date, provided there is
publication.
It takes effect immediately after its publication.

2. What are the exceptions to the general rule that laws shall have no retroactive effect?

1. If the law itself provides for its retroactivity (Art. 4, NCC)

2. Penal laws favorable to the accused who is not a habitual criminal, although at the time of the
publication of such laws, a final sentence has been pronounced and the convict is serving the
same. (Art. 22, Revised Penal Code)
3. If the law is procedural so long as it does not affect or change vested rights.
4. If the law creates new substantive rights. (Bona vs. Briones, G.R. No. L-10806, July 06, 1918)
5. If the law is curative in nature. (Jurado, Civil Law Reviewer [2019])
6. If the law is interpretative of other laws. (Jurado, supra.)

3. What is the doctrine of processual presumption?

Where a foreign law is not pleaded or, even if pleaded, is not validly proved, the presumption is
that the foreign law is the same as the domestic law. It is also known as the doctrine of presumed-
identity approach. (EDI-Staffbuilders Int’l. vs. NLRC, G.R. No. 145587, October 26, 2007)

4. When does the principle of unjust enrichment as embodied in Art. 22 of the Civil Code
apply?

For the principle to apply, the following requisites must concur: (i) a person is unjustly benefited;
and (ii) such benefit is derived at the expense of or with damages to another. (Yon Mitori International
Industries vs. Union Bank of the Philippines, G.R. No. 225538, October 14, 2020, J. Caguioa)

II. PERSONS AND FAMILY RELATIONS

5. Distinguish Juridical Capacity and Capacity to Act.

Juridical Capacity (Art. 37, NCC) Capacity to Act (Art. 37, NCC)

Fitness to be the subject of legal Power to do acts with legal effect.

relations.

Inherent Through fulfillment of specific legal activities.

Extinguished through death Through death and other causes.

Can exist without capacity to act. Cannot exist without juridical capacity.

No Limitations. Minority, insanity or imbecility, state of being deaf-mute,

prodigality, and civil interdiction (restriction)

Age, insanity, imbecility, state of being deaf-mute, penalty,

prodigality, family relations, alienage, absence, insolvency,
and trusteeship, among others. (modification/limitation)

6. When is a child considered born for civil purposes?

a) Fetus with an intrauterine life of at least seven (7) months - the fetus is considered born if it
is alive at the time it is completely delivered from the mother’s womb.
b) Fetus with an intrauterine life of less than seven (7) months - it is deemed born if it is alive
within 24 hours after its complete delivery from the maternal womb. (Art. 41, NCC)

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7. What is the presumption on survivorship?

If there is a doubt, as between two or more persons who are called to succeed each other, as to
which of them died first, whoever alleges the death of one prior to the other, shall prove the same;
in the absence of proof, it is presumed that they died at the same time and there shall be no
transmission of rights from one to the other. (Art. 43, NCC)

8. What are the grounds to change the first name of a person?

(a) The petitioner finds that the first name or nickname to be ridiculous, tainted with dishonor or
extremely difficult to pronounce;
(b) The new first name or nickname has been habitually and continuously used by the petitioner
and he has been publicly known by that first name or nickname in the community; and,
(c) The change will avoid confusion. (Sec. 4, R.A. No. 9048, as amended)

9. Luigi is the illegitimate child of Lovely Guzman and Bong Revilla. Bong Revilla
acknowledged Luigi as his son through an Affidavit of Acknowledgment. Later on,
Lovely Guzman married Patrick Santos, who, in turn, legally adopted Luigi. Thus, Luigi's
name was changed from "Luigi Guzman" to "Luigi G. Santos." Luigi grew up close to
Bong Revilla and the latter's wife and children and was treated by the family as a
legitimate son. He also used the name "Luigi Revilla" when he entered show business.
Thus, he filed a petition for change of name seeking to change his surname from
"Santos" to "Revilla": 1) to avoid confusion, 2) to show his sincere and genuine desire
to associate himself to Bong Revilla and to the Revillas, and 3) to ensure that his
records show his true identity as Bong Revilla's son. Should the change of his surname
be allowed?

No. To justify a change of name, a person must show not only some proper or compelling reason
but also that he will be prejudiced by the use of his true and official name. Luigi failed to prove
that there is any compelling reason to justify a change of surname from "Santos" to "Revilla."
Specifically:

1) The mere fact that Luigi began using a different name, i.e., "Luigi Revilla," when he joined
show business does not constitute a proper and reasonable cause to legally authorize a change
of name. Any confusion created by the use of said name is mainly due to the unauthorized use
of a name other than Luigi’s true legal name. Convenience is not a recognized ground for
change of name, which may be allowed only for compelling reasons that must be alleged and
proved.
2) A sincere desire to associate oneself to a certain person or family, without more, does not
justify a change of surname.
3) By virtue of the adoption, Luigi Santos’ true legal identity is that he is the legitimate son of
Patrick Santos. As adoption severs all legal ties between the adoptee and his or her biological
parents, there is no basis to allow petitioner to change his name to "Revilla" simply because
he is, biologically, the son of Bong Revilla and wants to associate himself with the Revilla family.
(Santos v. Republic, G.R. No. 250520, May 5, 2021, J. Caguioa)

10. Is a petition for declaration of the nullity of marriage proper when a person found out
that a marriage was registered under her name, despite not having personal
knowledge of such marriage having taken place?

No. The proper remedy is correction and/or cancellation of entries in the civil registry under Rule
108 and not a petition for declaration of the nullity of the marriage as there was no marriage to
speak of. If there is no marriage to speak of, the remedy is simply a petition for correction and/or
cancellation of entries in the Civil Registry under Rule 108 and not a petition to declare a marriage
void. (Republic v. Olaybar, G.R. No. 189538, February 10, 2014)

11. May a divorce decree obtained abroad by a Filipino married to a foreigner be recognized
as valid in the Philippines pursuant to Par. 2, Art. 26 of the Family Code?

Yes, Par. 2, Art. 26 of the Family Code still applies even if it is the Filipino spouse who obtained a
divorce decree, thus, it will still capacitate him or her to remarry. The purpose of Par. 2 of Article
26 is to avoid the absurd situation where the Filipino spouse remains married to the alien spouse
who, after a foreign divorce decree that is effective in the country where it was rendered, is no
longer married to the Filipino spouse. Whether the Filipino spouse initiated the foreign divorce
proceeding or not, a favorable decree dissolving the marriage bond and capacitating his or her
alien spouse to remarry will have the same result: the Filipino spouse will effectively be without a
husband or wife. (Republic vs. Manalo, G.R. No. 221029, April 24, 2018)

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12. Distinguish between the rulings under Republic v. Albios, G.R. No. 198780, October 16,
2013 and Ado-an-Morimoto v. Morimoto, G.R. No. 247576, March 15, 2021.
Republic v. Albios Ado-an-Morimoto v. Morimoto
As to Intention of Parties to Enter into Marriage
A citizen of the Philippines married an A citizen of the Philippines married a Japanese
American citizen solely for the purpose of citizen as a way to facilitate her acquisition of
acquiring American citizenship in a Japanese visa.
consideration of a sum of money.
As to Formal and Essential Requisites
All present. No valid marriage license.
As to Validity of Marriage
Valid. Void for absence of a marriage license at the
time of celebration of marriage.

13. What are the changes on the Molina guidelines (Republic vs. CA and Molina, G.R. No.
108763, February 13, 1997) in the interpretation and application of Art. 36 after the
ruling in Tan-Andal v. Andal (G.R. No. 196359, May 11, 2021)?

Guidelines Republic vs. CA and Molina Tan-Andal vs. Andal

1. Nature of Psychological Mental incapacity or Durable or enduring aspects

Incapacity Personality disorder of a person's personality,
called “personality structure”

2. Necessity of an expert Required Not required; An ordinary

opinion witness may testify

3. Incurability Incurable in medical sense Incurable in legal sense

14. Is an expert opinion required in an action for nullity of marriage on the ground of
psychological incapacity under Art. 36 of the Family Code, as amended?

No. Psychological incapacity is neither a mental incapacity nor a personality disorder that must be
proven through expert opinion. There must be proof, however, of the durable or enduring aspects
of a person's personality, called "personality structure," which manifests itself through clear acts of
dysfunctionality that undermines the family. The spouse's personality structure must make it
impossible for him or her to understand and, more important, to comply with his or her essential
marital obligations. (Rosanna L. Tan-Andal v. Mario Victor M. Andal, G.R. No. 196359, May 11, 2021)

15. What does the “well-founded belief” refer to in an action to declare a spouse as
presumptively dead?

The present spouse must prove that his/her belief was the result of diligent and reasonable efforts
and inquiries to locate the absent spouse and that based on these efforts and inquiries, he/she
believes that under the circumstances, the absent spouse is already dead. It requires exertion of
active effort and not a mere passive one. (Republic vs. Quinonez, G.R. No. 237412, January 6, 2020, J. Caguioa)

16. Mike and Jane contracted married in 2004. Prior to their marriage, Jane got pregnant
in 2001. Few months into the marriage, Mike found out that he was not the real father
of his supposed three-year-old child. May a petition for annulment be filed on the
ground of fraud?

No. In order to annul a marriage on the ground of fraud under Art. 46(2) of the Family Code, the
following requisites must concur: 1) the wife must have been pregnant by a man other than her
husband at the time of the marriage; and 2) the wife must have fraudulently concealed the same.
(Republic vs. Villacorta, G.R. No. 249953, June 23, 2021, J. Caguioa)

17. What are the requisites of Donations Propter Nuptias?

The following are the requisites of donations propter nuptias:

(a) Must be made before the celebration of the marriage;
(b) Must be made in consideration of the marriage;
(c) Must be in favor of one of both of the future spouses. (Art. 82, Family Code)

18. What is the rule on donations between spouses during marriage?

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 Status of Marriage Status of Donation or Grant of Gratuitous Advantage
Valid or Voidable marriage Donation is Void – Every donation or grant of gratuitous
advantage, direct or indirect, between the spouses during
the marriage shall be void, except moderate gifts which the
spouses may give each other on the occasion of any family
rejoicing. (Art. 87, 1st sentence)
Void marriage Donation is Void - The prohibition shall also apply to persons
living together as husband and wife without a valid marriage.
(Art.87, 2nd sentence; Perez, Jr. v. Perez-Senerpida, G.R. No. 233365,
March 24, 2021, J. Caguioa)

19. Distinguish between the effect of disposition or encumbrance of conjugal property by

one of the spouses without the consent of the other spouse under the Family Code and
Civil Code.

Family Code Civil Code

Entire contract is void (Art. 124, Family Code)
XPN: When one of the spouses dies before the
judgment declaring the contract void, the
conjugal property is terminated. The inchoate
interest of the spouses in the property then
becomes actual interest. Hence, the
transaction should be upheld with respect to
the ideal share of the transacting spouse.
Contract is voidable. Since the failure to bring
the action within ten (10) years from the
transaction renders the contract between the
husband and the third-person perfectly valid
and binding, the remedy provided for under
Art. 173 is for a voidable contract. (Article 166 in
relation to Article 173 of the Civil Code Spouses Cueno v.
Spouses Bautista, G.R. No. 246445, March 2, 2021, J.
Caguioa)

20. What property regime will govern a subsequent marriage of the surviving spouse who
failed to liquidate the previous absolute community or conjugal partnership of his
previous marriage, which was terminated by reason of the death of his first spouse?

A mandatory regime of complete separation of property shall govern the property relations of the
subsequent marriage should the surviving spouse contract a subsequent marriage without
liquidating the absolute community or conjugal partnership property. If a complete or total
separation of property governs the property relations, no portion of the properties of the marriage
will be common, and the fruits of the properties of either spouse, as well as his or her earnings
from any profession, work or industry, will belong to him or her as exclusive property. (Heirs of the
late Apolinario Caburnay vs. Heirs of Teodulo Sison, G.R. No. 230934, December 2, 2020, J. Caguioa)

21. Discuss the property regimes of the two kinds of unions without marriage under the
Family Code.

Article 147 Article 148

1. Capacitated to marry each other. With legal impediment to marry.
2. Live exclusively as husband and wife
without the benefit of marriage or under
a void marriage (due to absence of formal
requisites).
Salaries are owned in equal shares. Salaries are eparately owned by the parties.
Properties are governed by the rules on co- Properties are owned by them in common in
ownership when the presumption of joint proportion to their respective contributions.
acquisition and equal sharing applies.
Presumption of joint acquisition and equal No presumption of joint acquisition. When there
sharing as to property acquired while they is evidence of joint acquisition but none as to
live together. A party who did not participate the extent of actual contribution, there is a
in the acquisition by the other party of any presumption of equal sharing.
property shall be deemed to have contributed
jointly in the acquisition thereof if the
former’s efforts consisted in the care and
maintenance of the family and of the
household.
When one of the parties is in bad faith, his 1. If one of the parties is validly married to
share in the co-ownership shall be forfeited: another, his/her share in the co-ownership
1. In favor of their common children; shall accrue to the absolute community or
conjugal partnership existing in such valid
marriage.

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 2. In favor of the innocent party, in default
of or in case of waiver by any or all of the
common children or their descendants.
2. If the party who acted in bad faith is not
validly married to another or if both parties
are in bad faith, such share shall be forfeited
in accordance with the rule on forfeiture in
Art. 147.

22. What is the status of a disposition of a property, which was acquired during the
marriage, without the consent of the other spouse under Art. 147 and 148 of the Family
Code?

Article 147 Entire contract is void (Art. 147 (3), Family Code)

Article 148 Transaction is valid with respect only to the ideal share of the transacting
co-owner. (Art. 493, NCC)

23. When may the husband bring an action to impugn the legitimacy of a child?

1. If the husband or his heirs reside in the city or municipality where birth took place or was
recorded - one year from knowledge of birth or recording of such birth in the civil register.
2. If the husband or his heirs do not reside at the place of birth or where it was recorded, but are
residing within the Philippines - two years.
3. If the husband or his heirs reside abroad - three years. (Art. 170, Family Code)
24. What are the Rules on Proof of Filiation of Legitimate and Illegitimate Children?

Proof Period to file action

(a) The record of birth appearing in the
civil register or a final judgment;
(b) An admission of legitimate filiation in
a public document;
(c) An admission of legitimate filiation on
a private handwritten instrument and
signed by the parent concerned.
The action may be brought by the child during his
lifetime and shall be transmitted to the heirs should
the child die during minority or in a state of insanity.
The heirs shall have five (5) years within which to
institute the action. Action already commenced by
the child shall survive notwithstanding the death of
either or both of the parties. (Art. 173, NCC)

(a) The open and continuous possession Legitimate:

of the status of a legitimate child; or The action may be brought by the child during his
lifetime and shall be transmitted to the heirs should
(b) Any other means allowed by the Rules the child die during minority or in a state of insanity.
of Court and special laws. The heirs shall have five (5) years within which to
institute the action. Action already commenced by
the child shall survive notwithstanding the death of
either or both of the parties. (Art. 173, NCC)

Illegitimate:
The action must be brought within the same period
specified in Art. 173, but during the lifetime of the
alleged parent. (Art. 175, NCC)

25. Who may adopt under the Domestic Adoption Act of 1998?

a) A Filipino citizen:
i. Of legal age;
ii. In possession of full civil capacity and legal rights;
iii. Of good moral character;
iv. Has not been convicted of any crime involving moral turpitude;
v. Emotionally and psychologically capable of caring for children;
vi. At least 16 years older than the adoptee, in a position to support and care for his
children in keeping with the means of the family.

b) An Alien desiring to adopt must possess the same qualifications for Filipino citizens and:
i. His country has diplomatic relations with the Republic of the Philippines;
ii. He has been living in the Philippines for at least three continuous years prior to the
filing of the petition for adoption and maintains such residence until the adoption decree
is entered;

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 iii. He has been certified by his diplomatic or consular office or any appropriate government
agency to have the legal capacity to adopt in his country;
iv. His government allows the adoptee to enter his country as his adopted child.

c) The guardian with respect to the ward after the termination of the guardianship and clearance
of his/her financial accountabilities. (Sec. 7, R.A. No. 8552)

26. Distinguish Substitute and Special Parental authority.

Substitute Parental Authority Special Parental Authority

In the order indicated:
(1) The surviving grandparent. In case several
survive, the one designated by the court.
(2) The oldest brother or sister, over twenty-one
years of age, unless unfit or disqualified; and
(3) The child’s actual custodian, over twenty-one
years of age, unless unfit or disqualified.
In default of parents or a judicially appointed
guardian
Subsidiary liability.
The school, its administrators and teachers,
or the individual, entity or institution
engaged in childcare.
While under their supervision, instruction,
or custody.
Principally and solidarily liable for damages
caused by the acts or omissions of the
unemancipated minor.

III. SUCCESSION

27. What are the formalities of a will?

Common Formalities
1. It must be in writing;
2. It must be executed in a language or dialect known to the testator. (Art. 804, NCC)
Notarial Will Holographic Will Special Cases
1. Subscribed at the end thereof by the 1. Entirely written by 1. If the testator be deaf,
testator himself or by testator’s name the hand of the or a deaf-mute, he
written by some other person in his testator himself must personally read
presence and by his express direction 2. Entirely dated by the will, if able;
2. Attested and subscribed by 3 or more the hand of the otherwise, he shall
credible witnesses in the presence of testator himself designate two persons
the testator and of one another 3. Signed by the to read it and
3. All of the pages are signed, except the hand of the communicate to him, in
last, on the left margin by the testator testator himself. some practicable
or the person requested by him to (Art. 810, NCC) manner, the contents
write his name and the instrumental thereof. (Art. 807, NCC)
witnesses 2. If the testator is blind,
4. All pages are numbered correlatively the will shall be read to
in letters places on the upper part of him twice; once, by one
each page of the subscribing
5. Attestation clause executed by the witnesses, and again,
witnesses showing the number of by the notary public
pages used, the fact that the testator before whom the will is
signed the will and every page acknowledged. (Arts.
thereof, and that the instrumental 797, 798, 808, NCC)
witnesses witnessed and signed the
will and all the pages in the presence
of the testator and of one another (Art.
805, NCC)
6. Properly acknowledged before a
notary public by the testator and the
witnesses (Art. 806, NCC)

28. Is the requirement of reading to the testator the contents of a last will and testament
twice under Article 808 also applicable to illiterates?

Yes. While the law imposes the requirement only when the testator is blind, the Court has expanded
its coverage to those who are illiterate. However, substantial compliance is acceptable where the
purpose of the law has been satisfied, the reason being that the solemnities surrounding the
execution of wills are intended to protect the testator from all kinds of fraud and trickery but are
never intended to be so rigid and inflexible as to destroy the testamentary privilege. Article 808 is

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 meant to protect the testator from all kinds of fraud and trickery but is never intended to be so
rigid and inflexible as to destroy testamentary privilege. (Cosico v. Guia, G.R. No. 246997, May 5, 2021)

29. Is a prior determination of the status as a legal or compulsory heir in a separate special
proceeding a prerequisite to an ordinary civil action for recovery of ownership and
possession of property?

No. Unless there is a pending special proceeding for the settlement of the decedent’s estate or for
the determination of heirship, the compulsory or intestate heirs may commence an ordinary civil
action to declare the nullity of a deed or instrument, and for recovery of property, or any other
action in the enforcement of their ownership rights acquired by virtue of succession, without the
necessity of a prior and separate judicial declaration of their status as such. (Treyes vs. Larlar, G.R. No.
232579, September 08, 2020, J. Caguioa)

30. What are the rules on the amount of legitime of compulsory heirs?

Legend: Surviving spouse (SS); Legitimate child or descendant/s (LC); Illegitimate child (ILC);
Legitimate parent/s or ascendant/s (LP); Illegitimate parent/s (ILP); Free portion (FP)
When compulsory heir/s of the same kind survive alone
1 LC ½ of the estate of the father and mother. (Art. 888, NCC)
2 or more LCs ½ of the estate of the father and mother to be divided equally. (Art. 888, NCC)
LPA ½ of the estate of their children and descendants to be divided equally. (Art.
889, NCC)
IP ½ of the estate.
SS ½ of the estate.
⅓ if marriage was solemnized in articulo mortis and the testator died within
3 months from the time of the marriage.
½ if the surviving spouse and the testator have been living as husband and
wife for more than 5 years. (Art. 900, NCC)
IC ½ of the estate divided equally among the IC.
When Primary concurs with compulsory heirs
1LC; SS LC - ½ of the estate of the father and mother. (Art. 888, NCC)
SS - ¼ of the estate. (Art. 892, NCC)
In case of legal separation, the SS may inherit if it was the deceased who
had given cause for the same. (Art. 892, NCC)
2 or more LC; LC - ½ of the estate divided in equal portions. (Art. 888, NCC);
SS SS - equal to 1LC. (Art. 892, NCC)
LC; LC - ½, in equal portions. (Art. 888, NCC);
IC IC - ½ share of each LC. (Art. 176, FC)
1 LC; LC - ½ of the estate of the father and mother. (Art. 888, NCC)
SS; SS - ¼ of the estate. (Art. 892, NCC)
IC IC - ½ share of each LC. (Art. 176, FC)
The share of the SS has preference over that of the IC, whose share may
suffer reduction pro rata in case of insufficiency. (Art. 895, NCC)
2 or more LC; LC - ½ of the estate divided in equal portions. (Art. 888, NCC);
IC; IC - ½ share of each LC. (Art. 176, FC)
SS SS - equal to 1LC. (Arts. 892, 897, NCC)
When secondary heirs concur with concurring compulsory heirs
LPA; LPA - ½ of the estate of their children and descendants to be divided equally.
IC IC - ¼ of the estate. (Art. 896, NCC)
LPA; LPA - ½ of the estate of their children and descendants to be divided equally.
SS (Art. 889, NCC)
SS - ¼ of the estate. (Art. 893, NCC)
LPA LPA - ½ of the estate of their children and descendants to be divided equally.
SS (Art. 889, NCC)
IC SS ⅛ of the estate. (Art. 899, NCC)
IC - ¼ of the estate. (Art. 899, NCC)
IP; IP - ¼ of the estate.
SS SS - ¼ of the estate. (Art. 903, NCC)
Concurrence among concurring compulsory heirs
SS; SS - ⅓ of the estate.
IC IC - ⅓ of the estate. (Art. 894, NCC)

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31. When does the right of representation take place?

a. In testamentary succession, in case some, but not all, of the compulsory heir in the direct
descending line (a) dies before the testator; (b) becomes incapacitated to succeed from the
testator; or (c) is disinherited, and he is survived by his children or descendants. But not when
the compulsory heir repudiates his share. (Art. 856, 923, and 1035, NCC)
b. In intestate succession, in case some, but not all, of the legal heir in the direct descending line
(a) dies before; or (b) becomes incapacitated to succeed from, the decedent, and he is survived
by his children or descendant, or in the absence of other heirs which can exclude them from
the succession, a brother or sister dies before the decedent survived by his or her own children.
(Arts. 972, 975, 981, 982, and 1035 NCC; Jurado, Civil Law Reviewer, 2009)

32. Discuss the rules in intestate succession.

Surviving spouse (SS); Legitimate child or descendant/s (LC); Illegitimate child (ILC); Legitimate
parent/s or ascendant/s (LP); Legitimate ascendant/s (LA); Brothers and sisters (BS); and Nephews
and nieces (NN)
Intestate succession in the direct descending line

LC with ILC ILC: ½ of the share of the LC

LC with SS SS: same share as that of each LC

LC with ILC and SS SS: same share as that of each LC

ILC: ½ of the share of an LC
(Art. 983, NCC; Art. 176, Family Code)

Intestate succession in the direct ascending line

LA with ILC LA: ½

ILC: ½

SS with LP SS: ½
LP: ½

LA with SS and ILC LA: ½

SS: ¼
ILC: ¼
(Arts. 983 and 999, NCC; Art. 176, Family Code)

Illegitimate children

SS with ILC SS: ½

ILC: ½
(Art. 998, NCC)

Collateral blood relatives

BS with SS BS: ½
SS: ½
(Art. 1001, NCC)

33. When is there a Right of Accretion?

The right of accretion occurs when two or more persons are called to the same inheritance, legacy,
or devise, but by reason of (RIP) (1) REPUDIATION, or (2) INCAPACITY, or (3)
PREDECEASE, a vacancy is created in the inheritance. Therefore, in the absence of any expressed
will of the decedent, the law presumes that had he been able to express his will, he would have
given such vacant portion to the co-heirs, co-legatees, or co-devisees. (Art. 1015, NCC)

IV. OBLIGATIONS AND CONTRACTS

34. What are the kinds of delay?

i. Mora Solvendi – delay of the obligor/debtor to perform his obligation.

ii. Mora Accipiendi – delay of the obligee/creditor to accept the delivery of the thing which
is the object of the obligation

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 iii. Compensatio morae – delay of the parties or obligors in reciprocal obligations. (Paras, Civil
Code of the Philippines Annotated, 2016, p.124-125).

35. The co-owners of a property entered into a Deed of Partial Partition and subsequently
entered into a Memorandum of Agreement that they shall share alike and receive equal
shares in the proceeds of the sale of the property subject of the partition. Was there
novation of the Deed of Partition with the execution of the MOA?

No. There is no novation because there was no inconsistency between the two contracts, as they
can stand together. Novation, in order to extinguish an obligation, should have the following
requisites: (a) There is a previous valid obligation; (b) The parties concerned agree to a new
contract; (c) The old contract is extinguished; and (d) There is a new valid contract. In order for
there to be implied novation, the old and the new obligations be on every point incompatible with
each other (Jurado, Civil Law Reviewer, 2009, p. 797 citing Uraca vs. CA, G.R. No. 115158, September 5, 1997).

36. What is the concept of “tender of payment”?

Tender of payment is the definitive act of offering the creditor what is due him or her, together
with the demand that the creditor accept the same (Cinco vs. CA, G. R. No. 151903, October 9, 2009).

37. What are the different kinds of contracts?

Parameters Rescissible Voidable Unenforceable Void or

Contracts Contracts Contracts Inexistent
Contracts
Nature There is lesion or (1) One of the (1) Entered into Void contracts
damage to one of contracting without or in excess are absolute
the parties. (Art. parties does not of authority; nullity and
1380, NCC) have legal (2) They do not produce no
capacity; comply with the effect, as if it
(2) Vitiated Statute of Frauds; or had never
consent (3) Both the been executed
contracting parties or entered
do not possess the into. (Francisco
required legal vs. Herrera, Ibid).
capacity.
Ratification Yes Yes Yes No
Prescription 4 years 4 years Imprescriptible
Who can By the injured party By the injured Parties to the By third
assail party contract persons

38. Distinguish rescission under Art. 1191 from rescission under Art. 1383.

Art. 1381 Art. 1191

Rescission is a subsidiary remedy Rescission is a principal remedy

The ground is lesion or economic Substantial breach of the contract

prejudice

The action may be availed of even by a The action can be availed of only by a party to a
third party. contract.

Rescission applies to all kinds of Rescission applies exclusively to reciprocal

obligations obligations

4 years from accrual of right of action Either 10 years (for written contracts) or 6 years
(for oral contracts)

If the ground is proved, the court has no The court has discretionary power not to grant
discretion but to order rescission rescission if there is just cause for the fixing period.

39. What are the kinds of quasi-contract?

1. Negotiorum Gestio – juridical relation which arises whenever a person voluntarily takes charge
of the agency management of the business or property of another without any power or
authority from the latter.

9
 2. Solutio indebiti – juridical relation which arises whenever a person unduly delivers a thing
through mistake to another who has no right to demand it. (Jurado, Obligations and Contracts, 2010,
p. 10)

40. Discuss the different types of special contracts under the Civil Code.

DEFINITION
Sales A contract where one of the contracting parties obligates himself to
transfer the ownership and to deliver a determinate thing, and the other
party to pay a price certain in money or its equivalent. (Art. 1458, NCC)
Lease In the lease of things, one of the parties binds himself to give to another
the enjoyment or use of a thing for a price certain, and for a period
which may be definite or indefinite. (Art. 1643, NCC)
Partnership By the contract of partnership two or more persons bind themselves to
contribute money, property, or industry to a common fund, with the
intention of dividing the profits among themselves. (Art. 1767, NCC)
Agency By a contract of agency, a person binds himself to render some service
or to do something in representation or on behalf of another, with the
consent or authority of the latter. (Art. 1868, NCC)
Loan Commodatum One of the parties delivers to another, either
something not consumable so that the latter may use
the same for a certain time and return it. (Art. 1933,
NCC)
Mutuum One of the parties delivers to another, money or other
consumable thing, upon the condition that the same
amount of the same kind and quality shall be paid.
(Art. 1933, NCC)
Deposit It is constituted from the moment a person receives a thing belonging
to another, with the obligation of safely keeping it and of returning the
same. (Art. 1962, NCC)
Guaranty By guaranty, a person, called the guarantor, binds himself to the creditor
to fulfill the obligation of the principal debtor in case the latter should
fail to do so. (Art. 2047, NCC)
Suretyship By suretyship, a person binds himself solidarily with the principal debtor.
(Art. 2047, NCC)

V. SALES

41. What are the requisites of a double sale?

a. The two (or more) sales transactions must constitute valid sales;
b. The two (or more) sales transactions must pertain to exactly the same subject matter;
c. The two (or more) buyers at odds over the rightful ownership of the subject matter must
each represent conflicting interests; and
d. The two (or more) buyers at odds over the rightful ownership of the subject matter must
each have bought from the very same seller. (Cheng vs. Genato, G.R. No. 129760, December 29,
1998)

42. Differentiate contract of sale and contract to sell.

Contract of Sale Contract to Sell

Ownership is transferred to the buyer upon delivery Ownership is transferred upon full
of the object to him. payment of the purchase price.

There is only one contract executed between the 1.The contract to sell.
seller and the buyer. 2. The deed of absolute sale.

Non-payment of the price is a resolutory condition. Full payment of the price is a positive
Vendor loses ownership over the property and cannot suspensive condition.
recover it until and unless the contract is resolved or
rescinded.

1. Specific performance 1. Resolution

2. Rescission 2. Damages
3. Damages

10
43. Mr. A purchased three (3) air conditioners for P60k from Delta Motors via a Deed of
Conditional Sale. These are payable in 24 installments. Mr. A was able to pay 12
monthly installments, after which, they defaulted in paying at least two installments.
Due to this Delta Motors repossessed the air conditioners and the contract was
rescinded. Delta also sought to recover the unpaid balance from the sale of about P35k.
May Delta still demand Mr. A to pay the balance, notwithstanding the repossession of
the air conditioners and cancellation of the sale?

No. In a contract of sale of personal property the price of which is payable in installments, the
vendor may exercise any of the following remedies:(a) Exact fulfillment of the obligation, should
the vendee fail to pay at least one installment; (b) Cancel the sale, should the vendee’s failure to
pay cover two or more installments; (c) Foreclose the chattel mortgage on the thing sold, if one
has been constituted, should the vendee’s failure to pay cover two or more installments (Art. 1484,
NCC). Foregoing remedies are alternative and not cumulative. If the creditor chooses one remedy,
he cannot avail himself of the other two. (Delta Motors vs. Niu Kim Duan, G.R. No. 61043, September 2, 1992)

44. What are the rights of a buyer under the Maceda Law?

Buyer has paid at least 2 years of Buyer has paid less than 2 years of
installments installments

1. The buyer must pay, without additional
interest, the unpaid installments due within the
total grace period earned by him. There shall be
one (1) month grace period for every one (1)
year of installment payments made.
1. Buyer is entitled to pay unpaid installments
within a grace period of NOT less than 60
days from the date the installments became
due. Within the grace period, the buyer also
has the right to assign his rights.

2. The buyer shall have the right to sell his rights 2. After the grace period, the seller may
or assign the same to another person OR to cancel the contract AFTER 30 days from
reinstate the contract by updating the account receipt of the buyer of notice of cancellation
during the grace period and before actual or demand for rescission by a notarial act.
cancellation of the contract.
3. Here, there is no cash surrender value.
3. The buyer shall have the right to pay in
advance any installment or the full unpaid
balance of the purchase price any time without
interest and to have such full payment of the
purchase price annotated in the certificate of
title covering the property

45. What is a Conventional Redemption (Pacto de Retro)?

Conventional Redemption exists when the vendor reserves the right to repurchase the thing sold
with the obligation to reimburse to the vendee the price of the sale, the expenses of the contract,
other legitimate payments made by reason of the sale, as well as necessary and useful expenses
made on the thing sold. (Arts. 1601 and 1616, NCC)

46. When are contracts presumed to be an Equitable Mortgage?

1. When the price of a sale with a right to repurchase is unusually inadequate;

2. When the vendor remains in possession as lessee or otherwise;
3. When the period for the exercise of the right to repurchase is extended;
4. When the purchaser retains for himself a part of the purchase price;
5. When the vendor binds himself to pay the taxes on the thing sold;
6. When the real intention of the parties is that the transaction shall secure they payment of a
debt or the transaction shall secure the payment of a debt or the performance of any other
obligation. (De Leon, Comments and Cases on Sales and Lease, 2005, p. 389)

VI. LEASE

47. What are the requisites of an implied lease (tacita reconduccion)?

An implied new lease or tacita reconduccion will set in when the following requisites are found to
exist: a) the term of the original contract of lease has expired; b) the lessor has not given the
lessee a notice to vacate; and c) the lessee continued enjoying the thing leased for fifteen days
with the acquiescence of the lessor. (Samelo vs. Manotok Services, Inc. G.R. No. 170509, June 27, 2012)

11
 VII. PARTNERSHIP

48. What are the liabilities of a partner by estoppel?

A partner by estoppel is liable to any such person to whom such representation has been made
and to those who, on the faith of such representation, given credit to the actual or apparent
partnership.
a. When partnership liability results, he is liable as though he were an actual member of the
partnership;
b. When no partnership liability results, he is liable pro rata with the other persons, if any, so
consenting to the contract or representation; and
c. When there are no such other persons, he is separately liable. (Art. 1825, NCC)

VIII. AGENCY

49. What are the instances when an agency may not be revoked at will?

(a) if a bilateral contract depends upon it, or

(b) if it is the means of fulfilling an obligation already contracted, or
(c) if a partner is appointed manager of a partnership in the contract of partnership and his removal
from the management is unjustifiable. (Art. 1927, NCC)

IX. CREDIT TRANSACTIONS

50. Differentiate guaranty from surety.

Guaranty Suretyship

Liability depends upon an independent Surety assumes liability as a regular party to

agreement to pay the obligation if the primary the undertaking.
debtor fails to do so.

Collateral undertaking Original promisor

Guarantor is secondarily liable. Surety is primarily liable.

Insurer of the insolvency of the debtor. Insurer of the debt.

Guarantor can avail of the benefit of excussion Surety cannot avail of such benefit.
and division in case the creditor proceeds
against him.

Guarantor binds himself to pay if the principal Surety undertakes to pay if the principal does
cannot pay. not pay.

Not bound to take notice of the non- Held to know every default of his principal
performance of his principal

Often discharged by the mere indulgence of the Not discharged by mere indulgence of the
creditor or want of notice of default creditor or want of notice of default.

Has the right to have all the property of the Not entitled to the benefit of exhaustion of the
debtor and legal remedies against the debtor debtor’s assets.
first exhausted before he can be compelled to
pay the creditor.
(Phil. Export & Foreign Loan Guarantee Corp. vs. V.P. Usebio Construction, Inc., G.R. No. 140047, July 13, 2004)

51. When is a depositary liable for the loss of thing through fortuitous event?

The depositary is liable for the loss of the thing through a fortuitous event:
a. If it is so stipulated;
b. If he uses the thing without the depositor’s permission;
c. If he delays its return;
d. If he allows others to use it, even though he himself may have been authorized to use the
same. (Art. 1979, NCC)

12
 X. TORTS AND DAMAGES

52. Who are persons vicariously liable under Article 2180 of the Civil Code?

PERSONS VICARIOUSLY LIABLE DAMAGE CAUSED BY

Parents and other persons
exercising parental authority.
Guardians
Schools, administrators, teachers,
and individuals, entities or
institutions engaged in childcare.
Owners/managers of
establishment or enterprise
Employers
State
Teachers/Heads of establishment
of arts and trades for their pupils/
students/apprentices.
Minor Children
If at least 18 but below 21, provided the following
conditions are satisfied:
i. the age of the child is at least 18 but below 21;
and
ii. the child is living in their company. (Art.
2180, NCC)
Minors and incapacitated persons under their authority
and living in their company.
Children under their special parental authority within
the school premises.
Employees in the service of their branches in which they
are employed, or on occasion of their functions.
Employees and household helpers acting within the
scope of their assigned tasks, even though the employer
is not engaged in any business or industry.
Special agents.
Students and apprentices while under their custody.

53. Distinguish culpa aquiliana, culpa contractual vs. culpa criminal.

Culpa Aquiliana Culpa Contractual Culpa Criminal

Obligation arises from the breach
Fault or negligence resulting
of the contract because of the Existence of a law clearly
in damage or injury to
defendant's failure to exercise punishing the act.
another.
due care in its performance.
Negligence is merely incident to
Direct, substantive and the performance of an obligation Direct, substantive and
independent. already existing because of a independent.
contract.
Proof beyond reasonable
Preponderance of Evidence.
doubt
No pre-existing obligation
(except the duty to be
There is a pre-existing obligation. None.
careful in all human
actuations.
As to the Employer’s Defense of Exercising the Diligence of “Good Father of a
Family” in the Selection and Supervision of his Employees
A complete proper defense.
XPN: If the employer ratifies
the wrongful acts or takes Not a complete and proper
Not a proper defense.
no step to avert further defense.
damage, the employer
would still be liable.
As to the Presumption of Negligence
The presumption of negligence in
culpa contractual immediately
attaches by a failure of the
No presumption of
covenant or its tenor. The innocence of the
negligence. Injured party
In culpa contractual, the plaintiff accused is presumed until
must prove the negligence
only needs to establish the the contrary is proven.
of the defendant.
existence of the contract and the
obligor’s failure to perform his
obligation.

13
54. What are the elements of quasi-delict?

A quasi-delict has the following elements: a) the damage suffered by the plaintiff; b) the act or
omission of the defendant supposedly constituting fault or negligence; and c) the causal connection
between the act and the damage sustained by the plaintiff, or proximate cause. (VDM Trading, Inc.
and Sps. Domingo vs. Carungcong, G.R. No. 206709, February 6, 2019, J. Caguioa)

55. Discuss the diligence required in the following instances:

Diligence required A higher degree of care is required of someone who has in his
of gun store owners possession or under his control an instrumentality extremely
dangerous in character, such as dangerous weapons or substances.
Diligence required The degree of care ordinarily exercised by children of the same age,
of children capacity, discretion, knowledge and experience under the same or
similar circumstances.
Diligence required The highest practicable degree of prudence, thoughtfulness, and
of pharmacists vigilance, and most exact and reliable safeguards consistent with the
reasonable conduct of the business.
Diligence required The degree of care, skill and diligence which physicians in the same
of physicians general neighborhood, and in the same general line of practice,
ordinarily possess and exercise in like cases.

PART II
I. PROPERTY

56. What are the properties of public dominion?

There are three kinds of property of public dominion: (1) those intended for public use, which
may be used by anybody, such as roads and canals; and (2) those that belong to the State, without
being for public use, and are intended for public service and those used for the development
of national wealth, such as our natural resources. (Art. 420, NCC)

57. May an heir sell an unpartitioned lot without the consent of the other heirs?

Yes. Sale of the property owned in common amounts to an alteration thereof which requires the
unanimous consent of the other co-owners. However, under Art. 493 of the Civil Code, each co-
owner shall have the full ownership of his part and of the fruits and benefits pertaining thereto,
and he may therefore alienate, assign or mortgage it, and even substitute another person in its
enjoyment, except when personal rights are involved. But the effect of the alienation or the
mortgage, with respect to the co-owners, shall be limited to the portion which may be allotted to
him in the division upon the termination of the co-ownership. (Ulay vs. Bustamante, G.R. No. 231721, March
18, 2021, J. Caguioa)

58. Differentiate among the different kinds of possession.

Possession in one’s own name vs Possession in the name of another

Possession in one’s own name – the possession Possession in another’s name – the possession
which embraces all kinds of possession by a person without any right of his own and
anchored on a juridical title or right. one which is strictly of an agent or merely an
instrument in the exercise of such possession.
Possession in the concept of owner vs Possession in the concept of holder
Possession in the concept of owner – it refers to Possession in the concept of holder – one who
the opinion or belief of the neighbors and the possesses as a mere holder acknowledges in
rest of the world and not that of the possessor. another a superior right which he believes to
be ownership, whether his belief be right or
wrong.
Possession in good faith vs Possession in bad faith
Possessor in good faith – he is not aware that Possessor in bad faith – he is aware that there
there exists in his title or mode of acquisition exists in his title or mode of acquisition any
any flaw which invalidates it. flaw which invalidates it.

59. May possession be acquired through acts merely tolerated?

Acts which are merely tolerated do not affect possession. In other words, persons whose
occupation of a property by sheer tolerance of its owners are not considered as possessors in law.
(Rabuya, Ibid., p. 612)

14
60. In industrial succession, what are the rights, liabilities and remedies available to a
landowner, builder, planter, sower, and owner of the materials?

Landowner (LO); Builder, Planter, Sower (B, P, S); Owner of the Materials (OM)
BUILDING, PLANTING, OR SOWING ON ONE’S OWN LAND WITH MATERIALS
BELONGING TO ANOTHER
If both the LO and the If both the If LO acted in bad If LO acted in
OM acted in good faith LO and the faith and OM acted in good faith and
OM acted in good faith OM acted in bad
bad faith faith
(1) LO may appropriate The bad faith of (1) LO is liable for OM loses his
what he has built, one neutralizes damages. materials without
planted or sown, but the bad faith of (2) OM may: any right
must pay the value of the other. a. Demand the value whatsoever and is
the materials; OR Hence, they of his materials liable to the LO for
(2) LO may return the must be treated plus damages; OR damages.
materials to the OM, if as if both of b. Demand the
it can be made them acted in return of the
without damage to good faith. materials, even if
the materials. injury is caused to
the land, plus
damages.
BUILDING, PLANTING, OR SOWING
WITH ONE’S OWN MATERIALS ON THE LAND BELONGING TO ANOTHER
If both the LO and If both the LO If the LO acted in If the LO acted in
the BPS-OM acted and the BPS-OM good faith and the bad faith and the
in good faith acted in bad BPS-OM acted in bad BPS-OM acted in
faith faith good faith
(1) LO may The bad faith of (1) LO may appropriate (1) BPS-OM may:
appropriate as his one neutralizes the as his own the works, a. Demand
own the works, bad faith of the sowing, or planting, the value of
sowing, or other. Hence, they without need of his
planting, but must must be treated as paying indemnity, materials
pay the BPS-OM if both of them plus damages; OR plus
the necessary and acted in good faith. (2) LO may demand the damages;
useful expenses, demolition of OR
and in proper whatever has been b. Demand
cases, expenses built, planted, or the return
for pure luxury; OR sown even if injury is of the
(2) LO may oblige the caused to the land, materials,
BP to pay the price plus damages; OR even if
of the land, if the (3) LO may compel the injury is
value of the land is BP to pay the price of caused to
not considerably the land, even if the the land,
more than that of land is considerably plus
the building or more than that of the damages.
trees; and the S, building or trees, plus
the proper rent. damages.
(3) LO is entitled to (4) BPS-OM is entitled to
remove the works, reimbursement of
sowing, or planting necessary expenses
when, after having for the preservation
chosen to sell his of the land.
land, the BPS-OM
fails to pay for the
same;
(4) Pending
reimbursement,
the BPS-OM has
the right of
retention.

15
61. What is usufruct and its characteristics?

It is the right to enjoy the property of another temporarily, including both the jus utendi and the
jus fruendi, with the owner retaining the jus disponendi or the power to alienate the same. Its
characteristics are:
(a) It is real right (whether registered or not in the Registry of Property) of use and enjoyment;
(b) It is temporary in duration;
(c) Transmissible;
(d) May be constituted on real or personal property, consumable or non-consumable, tangible
or intangible, the ownership of which is vested in another.
(e) To derive all advantages from the thing due to normal exploitation (Rabuya, Property, 2008, p.
467).

62. May a usufructuary claim reimbursement from the land owner for real property tax
payments made during the term of the usufruct, and in case the land owner refuses,
may the usufructuary refuse return of the subject property?

Yes, the usufructuary may refuse the return of the land due to the right of retention. The
usufructuary enjoys a right of retention until payment of the sum that may have been advanced
by the usufructuary for payment of taxes which are imposed directly on the capital is reimbursed
to him. (Art. 602, NCC)

63. X created a usufruct over his land in favor of Y, to last until the child of Y turns 18 years
old. The child of Y died when he was 10 years old. Would the usufruct continue?

Yes, the usufruct would continue. A usufruct granted for the time that may elapse before a third
person attains a certain age, shall subsist for the number of years specified, even if the third person
should die before the period expires. Here, the child of Y is the third person in which the effectivity
of the contract was tied to. Being a third person to the contract, even if he died early, the usufruct
would still persist since the law provides that the same will subsist, not for the lifespan of the third
person but for the subsisting number of years agreed upon in the contract. (Art. 606, NCC)

64. What are the rights and obligations of the owner of the dominant and servient estate?

Dominant Estate Servient Estate

a. Make on the servient estate all the works a. To retain ownership and possession of
necessary for the use and preservation of the the servient estate (Art. 630, NCC);
servitude (Art. 627, NCC); b. To make use of the easement, unless
b. Ask for a mandatory injunction to prevent there is agreement to the contrary (Art. 630,
impairment of his use of the easement (Art. NCC); and
625, NCC); c. To change the place or manner of the
c. Renounce the easement if he desires to easement, provided it be equally convenient
exempt himself from contribution to necessary (Art. 629, NCC).
expenses (Art. 628, NCC); and
d. To exercise all the rights necessary for the
use of the easement (Art. 625, NCC).
Obligations
a. Cannot alter the easement or render it more GR: Cannot impair the use of the easement
burdensome (Art. 627, NCC);
b. Notify the servient owner of works necessary XPN:
for the use and preservation of the servitude i. The same should become very
(Art. 627, NCC); inconvenient to the owner of the servient
c. Choose the most convenient time and manner estate; or
in making the necessary works as to cause the ii. Should prevent him from making any
least inconvenience to the servient owner (Art. important works, repairs or improvements
627, NCC);
thereon.
d. Contribute to the necessary expenses if there
are several dominant estates (Art. 628, NCC);
e. Cannot use the easement except for the
benefit of the immovable originally
contemplated.
f. Exercise the easement in any other manner
than that previously established (Art. 626, NCC).

16
65. What are the requisites for a compulsory easement to be granted?

Under Article 649 of the NCC, easement is not compulsory if the isolation of the immovable is due
to the proprietor's acts. Furthermore,, to be entitled to a legal easement of right of way, the
following requisites must concur: (a) the dominant estate is surrounded by other immovable and
has no adequate outlet to a public highway; (b) payment of proper indemnity; (c) the isolation was
not due to acts of the proprietor of the dominant estate; and (d) the right of way claimed is at the
point least prejudicial to the servient estate, and insofar as consistent with this rule, where the
distance of the dominant estate to a public highway may be the shortest. (Woodridge School, Inc. vs.
ARB Construction, G.R. No. 157285, February 16, 2007)

66. What are the obligations of the dominant and the servient estate regarding easements
relating to waters?

Dominant Estate Servient Estate

1. To receive the waters which naturally and
without the intervention of man flow from the
higher estates, as well as the stones or earth
which they carry with them; and
2. He may not construct works, such as dikes,
walls or hedges, which will block or impede the
flow of waters, unless he provides an alternative
method of drainage. (Art. 637, NCC)
1. He may not construct works which will
increase the burden or increase the natural
flow.
2. To select the routes and methods of
drainage that will cause the minimum
damage to the lower lands if he shall resort
to artificial means of draining waters from
higher to the lower estate.
3. To pay just compensation to the lower
estate (Rabuya, Property, 2008 p. 538).

67. What are the requisites of acquiring easements by apparent sign established by the
owner of two adjoining estates?

(a) That there exists an apparent sign of servitude between two estates;
(b) That at the time of the establishment of such sign, the ownership of the two estates resides
in one person;
(c) That the sign of the easement be established by the owner of both estates because the
article will not apply when the easement is established by a person different from the owner;
(d) That the ownership over the two estates is later on divided, either by alienation or partition;
and
(e) That at the time of division of ownership, nothing is stated in the document of alienation or
partition contrary to the easement nor is the sign of the easement removed before the
execution of the document (Art. 624, NCC).

68. What are the modes of acquiring ownership?

Occupation Donation Prescription Intellectual

Occupation is a mode of
acquiring ownership by the
seizure or apprehension of
things corporeal which
have no owner with the
intention of acquiring them
and according to the rules
laid down by law (3
Sanchez Roman, 209).
An act of liberality One acquires ownership
whereby a person and other real rights
disposes through the lapse of time in
gratuitously of a the manner and under the
thing or right in conditions laid down by law.
favor of another, In the same way, rights and
who accepts it actions are lost by
(Art. 725, NCC). prescription (Art. 1106,
NCC).
Creation
By intellectual creation,
the following persons
acquire ownership:
(1) The author with
regard to his work;
(2) The composer, as to
his musical
composition;
(3) The artist, with
respect to the product
of his art;
(4) Any other person
with regard to his
discovery or invention.
(Art. 721, NCC).

69. What are the requisites of occupation as a mode of acquiring ownership?

1. Thing must be res nullius – a thing which never had an owner or has no owner at the time of
occupation;
2. Must be appropriable by nature or one that can be seized or apprehended;
3. Must be brought into the actual possession or control of the one professing to acquire it;
4. Person must acquire it with the intention of acquiring ownership. (Rabuya, Civil Law Reviewer, 2017,
p. 627)

17
70. What are the formalities required in a donation?

a. With simultaneous delivery

Value is more than P5,000.00
The donation and acceptance must be in writing.
(Art. 748[3]. NCC)
Value is P5,000.00 or less
1. Can be made orally – but requires the
simultaneous delivery of the thing.
2. Can be made in writing – acceptance may
be oral or written (Art. 748, NCC)

b. Without simultaneous delivery – the donation and acceptance must be in public or private
instrument.

71. Differentiate acquisitive prescription from extinctive prescription.

Distinction Acquisitive Prescription Extinctive Prescription

As to required Requires action possessor Requires inaction of the owner
actions/inactions claimant) who is not the owner. out of possession or neglect of
one with a right to bring his
action.
As to applicability to Applicable to ownership and Applicable to all kinds of rights,
ownership and other other real rights. whether real or personal.
rights
As to vesting of title Vests the property Vests the Vests the property and raise a
property and raise a new title in new title in the occupation
the occupant.
As to effects/results Results in the acquisition Merely results in the loss of a real
ownership or other real rights in or personal right, or bars the
a person as well as the loss of cause of action to enforce said
said ownership or real rights in right.
another.
As to pleadings Can be proven under the general Should be affirmatively pleaded
issue without its being and proved to bar the action or
affirmatively pleaded. claim of the adverse party.

72. What are the kinds of acquisitive prescription?

Ordinary
Requires possession of things in good faith and with
just title for the time fixed by law (Art. 1117, NCC).
Requisites:
1. Possession in good faith; (Art. 1127 and 1128, 526,
NCC).
2. Just title; (Arts. 1129 and 1130, NCC)
3. Within the time fixed by law (4 years for
immovables and 10 years for movables)
4. In the concept of an owner;
5. It must be public, peaceful and uninterrupted;
6. Capacity to acquire by prescription; and
7. Object must be susceptible of prescription.
Extraordinary
Acquisition of ownership and other real
rights without need of title or of good
faith or any other condition (Art. 1137, NCC).
Requisites:
1. Within the time fixed by law (8 years
for movables, 30 years for immovable)
2. Capacity to acquire by prescription
3. Object must be susceptible of
prescription
4. In the concept of an owner
5. It must be public, peaceful and
uninterrupted.

73. Provide for the prescriptive period of different kinds of actions.

Prescriptive Periods Actions

Imprescriptible To declare an inexistent or void contract
To quiet title
To demand a right of way
To bring an action for abatement of public nuisance
To enforce a trust
Probate of a will
To recover possession of a registered land under the land registration
act by the registered owner
30 years Real actions over immovables (but not foreclosure) without prejudice
to the acquisition of ownership or real rights by acquisitive
prescription (Art. 1141, NCC)
10 years Actions upon a written contract

18
 Actions upon an obligation created by law
Actions upon a judgment from the time judgment becomes final
Actions among co-heirs to enforce warranty against eviction in
partition
Mortgage action
8 years Action to recover movables without prejudice to acquisition of title
for a shorter period or to the possessor’s title under Art. 559, 1505
and 1133
6 years Actions upon an oral (verbal) contract
Actions upon a quasi-contract
5 years Action for annulment of marriages (except on the ground of insanity)
and for legal separation counted from the occurrence of the cause
Actions against the co-heirs for warranty of solvency the debtor in
credits assigned in partition
Action for the declaration of the incapacity of an heir (devisee or
legatee) to succeed
All other actions whose period are not fixed by law, counted from the
time the right of action accrues
4 years Action to revoke donations due to non-compliance of conditions
Action to rescind partition of deceased’s estate on account of lesion
Action to claim rescission of contracts
Annulment of contracts for vice of consent
Actions upon a Quasi-delict or Tort
Action to revoke or reduce donations based on birth, appearance or
adoption of a child
Actions upon an injury to the rights of the plaintiff (not arising from
contract)
3 years Actions under the eight -hour labor law
Actions to recover losses in gambling
Money claims as a consequence of employer-employee relationship
Action to impugn legitimacy of a child if the husband or his heirs
reside abroad.

74. What are the requisites that must concur for an action to quiet title to prosper?

In this remedy, two requisites must concur: (1) the plaintiff has a legal or an equitable title to or
interest in the real property subject of the action; and (2) the deed, claim, encumbrance or
proceeding claimed to be casting cloud on his title must be shown to be in fact invalid or inoperative
despite its prima facie appearance of validity or legal efficacy. (FEMCO vs. Heirs of Llanes, G.R. No. 194114,
March 27, 2019, J. Caguioa)

75. What are the actions for recovery of possession of real property?

Accion Interdictal Accion Publiciana Accion Reivindicatoria

It is a summary action that seeks
the recovery of physical possession
where the dispossession has not
lasted for more than a year, and is
to be exclusively brought in the
proper inferior court. (Martinez vs.
Heirs of Lim, G.R. No. 234655,
September 11, 2019)
It is a plenary action to
recover the right of
possession and the issue is
which party has the better
right of possession. (Id.)
When the period to file an
accion interdictal lapses, the
proper remedy is accion
publiciana.
It is an action whereby the plaintiff
alleges ownership over a parcel of
land and seeks recovery of its full
possession. (Heirs of Yusingco vs.
Busilak, G.R. No. 210504, January
24, 2018)

II. CREDIT TRANSACTIONS

76. What are the essential requisites of a real estate mortgage?

1. Constituted to secure the fulfillment of a principal obligation; (Art. 2085, NCC)

2. The mortgagor or antichretic debtor must be the absolute owner of the thing pledged or
mortgaged; (Ibid.)
3. The mortgagor or antichretic debtor have the free disposal of their property, or are legally
authorized for the purpose;
4. When the principal obligation becomes due, the subject matter of the pledge, mortgage or
antichresis may be alienated for the payment to the creditor. (Art. 2087, NCC)
5. It can cover only immovable property and alienable real rights imposed upon immovables.

19
77. What is Security Interest?

It is a property right in collateral that secures payment or other performance of an obligation,

regardless of whether the parties have denominated it as a security interest, and regardless of the
type of asset, the status of the grantor or secured creditor, or the nature of the secured obligation;
including the right of a buyer of accounts receivable and a lessor under an operating lease for not
less than one year. (Sec. 3(j) RA 11057)

78. How are security interests perfected?

A security interest shall be perfected when it has been created and the secured creditor has
taken one of the actions in accordance with the following means:
1. Registration of a notice with the Registry;
2. Possession of the collateral by the secured creditor; and
3. Control of investment property and deposit account. (Secs. 11 (a) and 12, R.A. No. 11057)

In Tangible In Intangible Intermediated Electronic Investment

Assets Assets Securities or Securities Property that is
Deposit (non- Electronic
Accounts intermediated) (Intermediated)
a. Registration a. Registration of a. Registration of a a. Registration of a. Registration of a
of a notice with a notice with the notice with the a notice with the notice with the
the Registry; or Registry; or Registry; Registry; Registry; or

b. Possession, b. Conclusion of b. Creation of a b. Execution of a b. Execution of a

whether actual control security interest in control control agreement
or agreement. favor of the agreement among the
constructive, of deposit-taking between the intermediary, the
the tangible institution or the grantor and grantor and
asset either by intermediary; or secured creditor; secured creditor.
the secured or
creditor or a c. Conclusion of a
depositary control agreement. c. Control,
acting for the through notation
secured of a security
creditor. interest in the
Provided, that books
the debtor or maintained by or
the grantor on behalf of the
cannot possess issuer for the
the collateral purpose of
on behalf of recording the
the secured name of the
creditor for holder of the
purposes of securities.
perfecting and
maintaining
the security
interest over
such collateral.

III. LAND TITLES AND DEEDS

79. What is the Curtain Principle or Indefeasibility of Titles?

The principle means that the current certificate of title contains all the information about the title
and it is not necessary for an interested person such as a potential purchaser to worry about any
past dealings with the property. (Sps. Cusi vs. Domingo, G.R. No. 195825, February 27, 2013)

80. What is the mirror principle under the Torrens System?

Under this principle, a purchaser is not required to explore beyond what the record in the registry
indicates on its face, in quest for any hidden defect or inchoate right which may subsequently
defeat his right thereto. (Viray vs. CA, G.R. No. 92481 November 9, 1990)

20
81. What are the different kinds of lands of the public domain?

Agricultural Lands Forest Lands Mineral Lands National Parks

Those public lands Include the public Any area where A forest reservation
acquired from Spain forest, the permanent mineral resources essentially for national
which are not timber or forest or forest are found. wilderness character
mineral lands. reserves, and forest which has been
reservations. withdrawn from
Note: These are the settlement, occupancy
only lands of public or form of exploitation.
domain that are
alienable.

82. May a foreigner acquire lands in the Philippines? What are the exceptions, if any?

No. as a general rule, only Filipino citizens are capacitated to acquire lands in the Philippines.
Foreigners are not allowed to acquire or own lands in the Philippines. The exceptions are:

1. Hereditary succession – succession by operation of law (succession with respect to the legitime
and intestate succession); (Sec. 7, Art. XII, 1987 Constitution)
2. A former natural born Filipino citizen to acquire lands in the Philippines subject to a maximum:
a. Urban – maximum areas up to 5,000sqm;
b. Rural – maximum areas up to 3 hectares; (R.A. 8179)
3. Those Americans who acquired lands pursuant to the parity agreement during the 1935
Constitution.

Note: In the case of foreign citizens who registered the title to the real property in the name of a
Filipino citizen, there is no right of reimbursement on the ground of implied trust. What cannot be
done directly cannot be done indirectly (In re: Petition of Separation of Property, Muller v. Muller,
G.R. No. 149615, Aug. 29, 2006)

83. Can a corporation acquire public lands?

No. Corporations are disqualified to acquire lands of the public domain. (Sec. 3, Art. XII, 1987 Constitution)
But corporations can acquire private lands with imperfect titles or those lands that are private but
are not yet registered under the Torrens System. (Director of Lands vs. IAC, G.R. No. 73002, December 29,
1986)

84. Who may apply for ordinary registration of land title?

Section 14 of P.D. No. 1529 provides that the following persons may file in the proper court, an
application for registration of title to land:

1) Those who by themselves or through their predecessors-in-interest have been in Open,

continuous, exclusive and notorious possession and occupation of alienable and disposable
lands of the public domain under a bona fide claim of ownership since June 12, 1945, or earlier
(Sec. 14[1], P.D. 1529);
2) Those who have acquired ownership of private lands by Prescription under the provision of
existing laws (Sec. 14[2], P.D. 1529).

85. What are the requisites for registration under the Property Registration Decree?

Under Sec. 14(1) Under Sec. 14(2)

1. The land is alienable and disposable 1. The land is an alienable and disposable,
property of the public domain;
2. The applicant and its predecessors in
interest have been in open, continuous,
exclusive and notorious possession and
occupation of the land under a bona fide
claim of ownership; and
3. The applicant and its predecessors-in-
interest have possessed and occupied
the land since June 12, 1945, or earlier.
(Republic vs. Zurbaran Realty and Development
Corporation, G.R. No. 164408, March 24, 2014)
and patrimonial property of the public
domain;
2. The applicant and its predecessors-in-
interest have been in possession of the land
for at least 10 years, in good faith and with
just title, or for at least 30 years, regardless
of good faith or just title; and
3. The land had already been converted to or
declared as patrimonial property of the
State at the beginning of the said 10-year
or 30-year period of possession. (Republic vs.
Zurbaran Realty and Development Corporation, G.R.
No. 164408, March 24, 2014)

21
86. Is it necessary under Sec. 14(1) of the Property Registration Decree that the land must
have already been declared alienable and disposable as of June 12, 1945?

No. It is not necessary that the land must have been declared alienable and disposable as of June
12, 1945, or earlier, because the law simply requires the property sought to be registered to be
alienable and disposable at the time the application for registration of title is filed, provided the
applicant’s possession and occupation of the land dated back to June 12, 1945, or earlier. (Republic
vs. Zurbaran Realty and Development Corporation, G.R. No. 164408, March 24, 2014; Heirs of Mario Malabanan vs.
Republic, G.R. No. 179987, September 3, 2013; Heirs of Mario Malabanan vs. Republic, 587 SCRA 172, April 29, 2009)

87. What are the effects of decree of registration?

1. It binds the land, quiets title, subject only to such XPNs or liens as may be provided by law.
2. It is conclusive upon all persons including the national government and all branches thereof.
(Sec. 31, P.D. 1529)

88. Provide the rules on the review of decree of registration.

GR: The decree of registration shall not be reopened or revised by reason of absence, minority, or
other disability of any person adversely affected thereby, nor by any proceeding in any court for
reversing judgments.

XPN: Courts may reopen proceedings already closed by final decision or decree when application
for review is filed not later than one year from and after the date of the entry of such decree of
registration by the party aggrieved or deprived of land or of any estate or interest therein by such
adjudication or confirmation of title obtained by actual fraud.

Requisites:
a. The petitioner must have an estate or interest in the land;
b. He must show actual or extrinsic fraud in the procurement of the decree of registration;
c. The petition must be filed within one year from the issuance of the decree by the Land
Registration Authority;
d. The property has not yet passed to an innocent purchaser for value. (Sec. 38, Act No. 496)

XPN to XPN: In no case shall such petition be entertained by the court where an innocent
purchaser for value has acquired the land or an interest therein, whose rights may be prejudiced.
(Sec. 32, P.D. 1529)
Note: Under Section 48 of PD 1529, a certificate of title shall not be subject to collateral attack

89. What are the prescriptive periods for an action for reconveyance?

Plaintiff is not in possession Plaintiff is in possession

The prescriptive period is 10 years from The action is imprescriptible because the action
issuance of the title because it is based on would be in the nature of a suit for quieting of title.
implied trust where the defendant acquires
the disputed property through mistake or
fraud so that he would be bound to hold
the property for the benefit of the person
who is truly entitled to it and reconvey it to
him.
(Sps. Aboitiz vs. Sps. Po, G.R. No. 208450, June 5, 2017)

90. What are voluntary and involuntary dealings?

Voluntary Dealings Involuntary Dealings

It refers to deeds, instruments or It refers to an attachment, or a copy of any writ,
documents, which are the results of the order or process issued by a court of record,
free and voluntary acts of the parties intended to create or preserve any lien, status,
thereto. right, or attachment upon registered land. (Sec. 69,
P.D. No. 1529)
Kinds
1. Sales, conveyances or transfer of 1. Attachment (Sec. 69, P.D. 1529)
ownership over the titled property; 2. Mandamus (Sec. 73, P.D. 1529)
2. Real property mortgages; 3. Sale on execution of judgment or sales for taxes
3. Lease; (Sec. 74, P.D. 1529)
4. Pacto de retro sale; 4. Adverse claims (Sec. 70, P.D. 1529)
5. Extra-judicial settlement; 5. Notice of lis pendens (Sec. 76, P.D. 1529)

22
 6. Free patent/homestead; 6. Expropriation (Sec. 85, P.D. 1529)
7. Powers of attorney; and 7. Forfeiture (Sec. 75, P.D. 1529)
8. Trusts. (Aquino, Land Registration and Related 8. Auction sale on foreclosure of mortgage (Sec. 74,
Proceedings, 2007, p. 184) P.D. 1529)
Effect of Registration
An innocent purchaser for value of Entry thereof in the day book of the Register of
registered land becomes the registered Deeds is sufficient notice to all persons even if the
owner the moment he presents and files a owner’s duplicate certificate of title is not
duly notarized and valid deed of sale, and presented to the Register of Deeds. (Sec. 31, P.D.
the same day is entered in the book and at 1529)
the same time he surrenders or presents
the owner’s duplicate certificate of title
covering the land sold. (Durawood vs. Bona,
G.R. No. 179884, January 25, 2012)
Presentment of Title
Presentment of Certificate of Title is Presentment of Certificate of Title is not required,
required to record the deed in the registry annotation in entry book is sufficient.
and to make memorandum on title.

91. What are the formal requisites of an adverse claim for purposes of registration?

1. Adverse claimant must state the following in writing:

a. His allege right or interest;
b. How and under whom such alleged right or interest is acquired;
c. The description of the land in which the right or interest is claimed;
d. The certificate of the title number;
2. Such statement must be signed and sworn to before a Notary public; and
3. Claimant shall state his residence or place to which all notices may be served upon him. (Sec. 70,
P.D. No. 1529)

92. What are the different administrative proceedings and who may apply?

Proceedings Who may apply?

1. For Homestead Settlement Any citizen of the Philippines over the age of 18
years, or the head of a family, who does not own
more than twelve (12) hectares of land in the
Philippines or has not had the benefit of any
gratuitous allotment of more than twelve (12)
hectares of land since the occupation of the
Philippines by the United States
Limitation: Not exceeding twenty-four hectares
of agricultural land of the public domain.
2. By sale Any citizen of lawful age of the Philippines, and
any such citizen who is a head of a family.
Limitation: Not exceeding twelve (12) hectares.
3. By lease (a) Any citizen of lawful age of the Philippines
(b) Any corporation or association of which at
least sixty per centum (60%) of the capital stock
or of any interest in said capital stock belongs
wholly to citizens of the Philippines, and which is
organized and constituted under the laws of the
Philippines.
4. By Confirmation of Imperfect or (a) Those who, prior to the transfer of
Incomplete Titles sovereignty from Spain to the United States,
have applied for the purchase, composition or
A. Judicial Legalization other form of grant of lands of the public domain
under the laws and royal decrees then in force
and have instituted and prosecuted the
proceedings in connection therewith, but have
with or without default upon their part, or for any
other cause, not received title therefore, if such
applicants or grantees and their heirs have
occupied and cultivated said lands continuously
since the filing of their applications.
(b) Those who, by themselves or through their
predecessors in interest, have been in open,

23

5. By Administrative Legalization
6. Socialized Housing
continuous, exclusive, and notorious possession
and occupation of agricultural lands of the public
domain, under a bona fide claim of acquisition or
ownership, for at least thirty (30) years
immediately preceding the filing of the
application for confirmation of title.
(c) Members of the national cultural minorities
who by themselves or through their
predecessors-in-interest have been in open,
continuous, exclusive and notorious public
domain suitable to agriculture, whether
disposable or not, under a bona fide claim of
ownership for at least thirty (30) years shall be
entitled to the rights granted in sub-Sec. (b)
hereof.
(a) Any natural-born citizen of the Philippines
who is not the owner of more than twelve (12)
hectares and who since July 4, 1926 or prior
thereto, has continuously occupied and
cultivated, either by himself or through his
predecessors-in-interest, a tract or tracts of
agricultural public lands subject to disposition, or
who shall have paid the real estate tax thereon
while the same has not been occupied by any
person
Limitation: Not to exceed twelve (12) hectares.
(b) A member of the national cultural minorities
who has continuously occupied and cultivated,
either by himself or through his predecessors-in-
interest, a tract or tracts of land, whether
disposable or not since July 4, 1955.
1. Must be a Filipino citizen;
2. Must be an underprivileged citizen;
3. Must not own any real property;
4. Must not be a professional squatter. (Sec. 16.
R.A. No. 7292)

93. When is the remedy to recovery damages against the Assurance Fund available?

A person who, without negligence on his part, sustains loss or damage, or is deprived of land or
any estate or interest therein in consequence of the bringing of the land under the operation of
the Torrens system of arising after original registration of land, through fraud or in consequence
of any error, omission, mistake or misdescription in any certificate of title or in any entry or
memorandum in the registration book, and who by the provisions of this Decree is barred or
otherwise precluded under the provision of any law from bringing an action for the recovery of
such land or the estate or interest therein, may bring an action in any court of competent
jurisdiction for the recovery of damages to be paid out of the Assurance Fund. (Sec. 95, P.D. No. 1529)

94. What is the limitation for action to recover damages against the Assurance Fund?

Any action for compensation against the Assurance Fund by reason of any loss, damage or
deprivation of land or any interest therein shall be instituted within a period of six years from the
time the right to bring such action first occurred. (Sec. 102, P.D. No. 1529)

24
 PRACTICAL EXERCISES

1. Draft a Complaint in a Civil action.

CAPTION
REPUBLIC OF THE PHILIPPINES
_____________ JUDICIAL REGION
_________TRIAL COURT
_________ CITY, BRANCH _______

(Name of Plaintiff)
Plaintiff, CIVIL CASE NO. _____

FOR: _______________
-versus-

(Name of Defendant)
Defendant,
x-------------------------------------------x

COMPLAINT
BODY
Plaintiff, through counsel, states that,

1. (State personal circumstances of Plaintiff: Name, Age, Address, Citizenship);

2. (State personal circumstances of Defendant: Name, Age, Address, Citizenship);
3. (Details of the cause of action).

PRAYER

Plaintiff respectfully prays that:

1. (State reliefs prayed for).

Other equitable reliefs as the court sees fit are likewise prayed for.

(Place) and (Date)

SIGNATURE

(signed)
Atty. (Counsel - DO NOT USE YOUR NAME)
Roll No.: _____;
IBP No.:_____;
PTR No.: _____;
MCLE No.: _____.
(Office Address)
(Contact Details)

25
2. Draft a Demand Letter.

(Date)

(Addressee)
(Address)
DEMAND TO PAY

Dear, Mr./Ms. ___________

We write on behalf of our client, (Name of Client)., the matter of your non-payment of your obligation.

Records disclose that you have an outstanding obligation with our client in the amount of Php (amount of
obligation) inclusive of interest and surcharges. Despite repeated demands, you failed and continuously
failed to pay the aforesaid amount.

Thus, final demand is hereby made upon you to settle the amount of Php (amount of obligation) within
(no. of days) from receipt of this demand letter. Otherwise, we will be constrained to file the necessary
legal action against you to protect the interest of our client.

We trust that you will give this matter your prompt and preferential attention to avoid the expense and
inconvenience of litigation.

Respectfully,

ATTY. (Name of Counsel - DO NOT USE YOUR NAME)

Counsel of Mr./Ms. (Name of person making the demand)

26
3. Draft a Special Power of Attorney

REPUBLIC OF THE PHILIPPINES )

CITY OF (Name of City / Municipality ) S.S

SPECIAL POWER OF ATTORNEY

THIS SPECIAL POWER OF ATTORNEY IS ENTERED BETWEEN:

(Name of Principal),(State personal circumstances: Name, Age, Address, Citizenship), the Principal,
And
(Name of Agent), (State personal circumstances: Name, Age, Address, Citizenship), the Agent.

I, (Principal), do hereby appoint, (Agent) to be my true and lawful attorney-in-fact, to do and perform the
following acts:

1. (Enumerate the powers to be given to Attorney-in-fact)

HEREBY GIVING AND GRANTING unto my said attorney-in-fact full power and authority to do and perform
any and every act and thing whatsoever requisite, necessary to be done in and about the premises as fully
to all intents and purpose as I might or could lawfully do if personally present and hereby ratifying and
confirming all that my said attorney-in-fact shall lawfully do and cause to be done under by virtue of these
presents.

(Place) and (Date)

(Name of Principal) (Name of Attorney-in-fact)

Principal Attorney-in-fact

WITNESSES

[ACKNOWLEDGMENT]

27
4. Draft Deed of Usufruct (Simple Contract; For other purposes, change the marked details)

DEED OF USUFRUCT

THIS CONTRACT, MADE AND ENTERED INTO BY AND BETWEEN:

(State personal circumstances: Name, Age, Address, Citizenship), and hereinafter referred to as the
OWNER;

And

(State personal circumstances: Name, Age, Address, Citizenship), and hereinafter referred to as the
USUFRUCTUARY;

WITNESSETH THAT:

The OWNER offers to USUFRUCTUARY, and such offer has been accepted, the USUFRUCT of a (State
the subject property), for (State purpose), within (Period), commencing on (Date).

The USUFRUCTUARY further agrees and acknowledges that the title to, and ownership of, the
subject property remains with the OWNER.

(State other circumstances pertaining to the usufruct);

(Place) and (Date)

(Name of Owner) (Name of Usufructuary)

OWNER USUFRUCTUARY

WITNESSES

[ACKNOWLEDGMENT]

Note:

For ABSOLUTE SALE:

> Seller cedes, transfers, and conveys all legal right and title to Subject Property to Buyer, and in
consideration thereof, Buyer shall pay to Seller the amount of XX as fair purchase price thereof.

For CONDITIONAL SALE:

> Seller, shall cede, transfer, and convey all legal right and title to Subject Property to Buyer, upon
[condition]. Buyer acknowledges that until compliance of the aforementioned condition, the contract of
sale remains conditional, and failure to comply within [deadline] shall result in rescission of the Sale.

For CONTRACT TO SELL:

> Buyer shall pay the total contract price of XX and comply with the other conditions as provided herein,
and only then shall Seller execute a Deed of Absolute Sale conveying the subject property.

For LEASE:
> Lessor leases to Lessee the Subject Property for the period of [start date to end date], and in
consideration thereof, Lessee shall pay to Lessor the monthly rental in the amount of XX.

28
5. Draft an Authorization Letter.

(Date)

(Addressee)
(Address)

AUTHORIZATION

Dear, Mr./Ms. ___________

I, (Name of authorizing person), hereby authorize (Name of authorized person), my (Relationship), to act
on my behalf in all necessary transactions concerning (State personal circumstance/matters, as applicable).
A copy of my (Indicate type of Identification) ID is with her/him for your reference. Thank you.

(Name of Authorizing Person)

-OR-

(Date)

To Whom It May Concern:

I, (Name), give full authorization to (Name of Representative) receive, sign, and transact any
communication with any representative of (Name or Type of courier) in connection with receiving my
Philippine passport on my behalf.

Thank you very much.

Sincerely,

(Signature over Complete Name)

29