B 4.

Void Marriages
 ABSENCE of any formal/essential requisites
 Solemnized by any person not legally authorized
CIVIL NOTES  Mistake of one contracting part as to the identity of the
other
I. In General  Bigamous & Polygamous marriages
A. When law takes effect  Subsequent marriage, upon reappearance of spouse
B. Retroactivity of laws  Bad faith on both spouses in subsequent marriage
C. Mandatory or prohibitory laws  Psychologically incapacitated
D. Waiver of Rights  Void subsequent marriages (failure to comply w/ reqs. of annulled
E. Repeal of laws marriage)
F. Conflict of laws (Private International Law)  Incestuous marriages
G. Human relations  By reason of public policy
H. Applicability of penal laws
5. Voidable Marriages (Annulment)
II. Persons and Family Relations  18 – 21 yr old without consent of parents*
A. Persons  Unsound mind*
1. Kinds of Persons  Consent obtained by FRAUD* - there must be
2. Capacity to Act concealment/nondisclosure
3. Domicile and residence of persons  Previous conviction of final judgment involving moral
turpitude
B. Rights and Obligations of Couples in Intimate Relationships (R.A.  Wife pregnant by another man at the time of marriage
No.9262)  STD regardless of nature as long as there’s concealment
 Drug addiction
C. Marriage  Habitual alcoholism
1. Requisites  Homosexuality & Lesbianism existing at the time of
 Essential marriage
 Legal Capacity
 Consent Rule: no other misrepresentation as to CHARACTER, HEALTH, RANK,
 Formal FORTUNE or CHASTITY shall constitute such fraud
 Authority of Solemnizing Officer
 Consent obtained by FORCE, INTIMIDATION or UNDUE INFLUENCE*
 Valid Marriage License
 Physically incapable of consummating the marriage/ Impotency ^
 Marriage ceremony with presence of not less than 2 witness
- Should be unknown to the other party at the time of marriage
2. Marriages celebrated abroad
 Afflicted with a sexually transmissible disease – must be SERIOUS &
3. Foreign divorce
INCURABLE, but need not be concealed^
 * subject to ratification by CONTINUED COHABITATION
^ within 5 years of marriage after that action will prescribe
6. Unmarried Cohabitation
-there is an INFORMAL CIVIL PARTNERSHIP which entitle parties to an equal
interest in property acquired by their joint efforts
D. Legal Separation
1. Grounds
 Repeated physical violence/ grossly abusive conduct
 Physical violence/moral pressure to compel change in religious or
political affiliation
 To corrupt or induce petioner, child of petitioner or common child
to engage in prostitution
 Final judgement of imprisonment of more than 6 years
 Drug addiction or habitual alcoholism*
 Lesbianism or Homosexuality*
 Contracting subsequent Bigamous marriage whether in PH or
abroad
 Sexual infidelity or Perversion
 Attempt by the respondent against the life of the petitioner
 Abandonment without justifiable cause for more than one year
* It is enough that it arises DURING the existence of the marriage.
2. Defenses
 Condonation (express or implied)
 Consent (express or implied)
 Connivance
 Mutual Guilt between spouses
 Collusion to obtain decree of legal separation
 Prescription of action (within 5 yrs from occurrence of cause)
 Reconciliation during pendency of action
 Death of either party during pendency of action
3. Procedure
 Cooling off Period – action for LS can only be tried after 6 months
from filing of the petition.
 Mandatory 6 month cooling-off period does NOT apply in cases
where violence is alleged. (VACW law)
4. Effects of Filing Petition
 Spouses are entitled to live SEPARATELY
 Administration of community/conjugal propery assigned by court to either
party or 3rd person
5. Effects of Pendency
 Support of spouses from ACP or CPG
 Custody of Children (Court shall provide if no agreement between spouses)
 Visitation rights
6. Effects of decree of legal separation
 Spouses can live separately
 ACP or CPG dissolved, Guilty spouse (GS) share forfeited
 Custody of minor children to innocent spouse (IS)
 GS disqualified from inheriting from IS: Intestate and testate
 Donations in favor of GS from IS may be revoked
-prescribes after 5 yrs from decree
 IS may revoke GS as beneficiary in any insurance policy
 Obligation of mutual support ceases bt court may order GS to support IS
 Wife SHALL continue to use surname of husband
7. Reconciliation
 LS proceedings terminated at whatever stage
 Final decree of LS, set aside
 Separation of property and Forfeiture of share by GS shall subsists.
 Joint custody of children restored
 Right to INTESTATE succession by GS restored
8. Effect of death of one of the parties
- Death of either party to a legal separation proceeding, before final decree, ABATES
the action since it is a purely personal right. So it follows that death of one party to
the action, causes the death of the action itself.
-even if the action involved property rights, abatement will still apply. Art. 6 of FC
shows that they are solely the EFFECTS of the decree of LS hence they cannot
survive the death of either party if it occurs prior to the decree.
E. Rights and Obligations between Husband and Wife
5. Conjugal Partnership of Gains
F. Property Relations of the Spouses
1. Marriage Settlements
2. Donations by reason of marriage
 Donation proper nuptias
 Made BEFORE the marriage
 Made IN CONSIDERATION of the marriage
 Made IN FAVOR of one or both of the future spouses
 Even if the marriage is not celebrated, the donation proper nuptias is still valid,
although revocable in character. It would only entitle the donor to ask for
revocation, it’s not revoked by operation of law.
 Only a person who is directly prejudiced by the donation at the time when it
was made can subsequently question its validity
3. Void donations by the spouses
 Donations Before marriage
- The limit of 1/5 only applies when the donation is contained in the marriage
settlement. If it is contained in another instrument, the general rules on
inoffiicious donations shall apply
 Donations During marriage
- A spouse cannot donate to persons which the other spouse may inherit from
as it constitutes an indirect donation
- Moderate donations will be judged depending upon the financial
circumstances of the donor
4. Absolute Community of Property
 When one spouse is incapacitated or unable to participate in the
administration of properties, the other spouse may assume sole powers
EXCEPT:
(1) Disposition ; and (2) Encumbrance
-There’s a prior requirement of (A) Authority of the court, or (B) Consent of the
spouse that is needed.
 Exclusive Property (Paraphernal – wife ; Capital – husband)
 Property brought INTO the marriage as his/her own
 Acquired DURING the marriage by GRATUITOUS titles
 Acquired by right of REDEMPTION, BARTER or EXCHANGE
 Purchased with EXCLUSIVE MONEY of such spouse
o The status of the property acquired by right of redemption is
determined, not by the status of the source of the funds used for
redeeming said property, but by the status of the right itself.
o Compensatory damages = conjugal ; Moral damages = paraphernal
 Conjugal Property
 From labor, industry or profession of either or both spouses
 Fruits from common property & Net fruits from exclusive property
 Acquired by ONEROUS title DURING MARRIAGE at the expense
of COMMON FUND regardless if it’s for only one of the spouse
 All property acquired DURING the marriage is PRESUMED
conjugal
o The nature of the proceeds of the insurance policy will depend on
upon the nature of the source of the premiums that were paid.
o Improvement + Lot = The conversion from exclusive property to
conjugal is subject to the SUSPENSIVE CONDITION that its value
shall be reimbursed to the estate of the owner-spouse. This can only
be done at the time of LIQUIDATION. This is applicable only if the
building/improvement is still existing at the time of the liquidation.
 Charges upon the Conjugal Partnership
 Support of the family and legitimate children of either spouse
  All obligations contracted DURING the marriage for the benefit of
the conjugal partnership of gains
 All expenses for mere preservation upon the SEPARATE property
of either spouse, REGARDLESS if it’s used by the family. Because
the CP is the usufructuary of all separate properties.
 Ante-nuptial debts of either spouse insofar as they have
REDOUNDED to the BENEFIT of the family
 Personal Debts of either spouse BEFORE or DURING the marriage
insofar as they REDOUNDED to the BENEFIT of the family even
WITHOUT CONSENT of the other.
o Principal Obligor of a debt = falls within for the benefit of the CP
o Surety or Guarantor = proof must be presented first to establish it
redounded to the benefit of the CP
o The fruits of paraphernal property, although conjugal, cannot be held
liable for purely personal obligations of the husband
6. Regime of Separation of Property
 Before the marriage – may be PARTIAL or TOTAL
o Through marriage settlement
 During the marriage (Only through Judicial Order) - TOTAL
o Voluntary
o Involuntary/ For Sufficient cause
7. Judicial Separation of Property
 Sufficient Cause for Judicial Separation
o Spouse sentenced to a penalty with civil interdiction*
o Spouse judicially declared an absentee*
o Loss of parental authority of spouse as decreed by court*
o Spouse abandoned family or failed to comply with duties^
o Spouse abused power of administration in marriage settlements^
o Spouses separated de facto for at least 1 year^
* Presentation of Final Judgement against spouse required for Judicial Order to be
granted
^ Proof of the Cause is required for JS to be granted.
8. Property Regime of Unions Without Marriage
 Art 147 - Cohabitation with NO Legal Impediment (even if void as long as no
LI)
 Co-Ownership – presumption that properties acquired are through
their joint efforts. Proof of actual contribution not needed.
 Art 148 – Cohabitation WITH Legal Impediment
 Co-ownership in proportion to Actual Joint Contribution – presumption
of “equality of contribution” will not arise unless condition of “actual
joint contribution” is proven first.
G. The Family
1. Concept of Family
*Husband and Wife *Parents and Children
*Other ascendants and descendants *Brothers & Sisters, full or half blood
2. Effects on Legal Disputes
 No suit between members of the same family shall proper unless petition
shows that EARNEST EFFORT towards COMPROMISE have been made but
FAILED.
3. Family Home
 Descendants (grandchildren, great-grandchildren) cannot be considered
“beneficiaries” if they are supported by their own parents and not by the
ascendants who constituted the family home.
 FH may not be subject to execution EXCEPT:
 Non-payment of taxes
 Debts incurred prior to the constitution of FH
 Debts secured by mortgages on the FH before or after such
constitution
 Due to those who rendered service or furnish material for construction
of FH
H. Paternity and Filiation
1. Legitimate Children  If nobody asserts the legitimacy or illegitimacy of the child born after 300 days
following the termination of the marriage – Child is considered ILLEGITIMATE.
 RIGHT TO REPUDIATE or contest the legitimacy of a child born in wedlock
belongs only to the HUSBAND and can be exercised only by him or his heirs 4. Action to Impugn Legitimacy
in such cases.
 Rights of Legitimate Children:  PHYSICALLY IMPOSSIBLE to have sex within first 120 days of the 300 days
(a) Surname (b) Support (c)Legitime immediately preceding birth of child.
o Physical Incapacity to perform sex (Impotency not sterility)
2. Proof of Filiation o LIVING SEPARATELY in such a way sex is not possible
o SERIOUS ILLNESS that ABSOLUTELY PREVENTS sex
 PRIMARY EVIDENCE:
 Proved for BIOLOGICAL or other scientific reasons.
 Record of birth in civil register*
 For Artificial Insemination, Written Authorization obtained through MISTAKE,
 Final Judgment* FRAUD, VIOLENCE, INTIMIDATION or UNDUE INFLUENCE (MFVIUi)
 Admission of Legitimate Filiation in PUBLIC DOCUMENT*
 Admission of LF in PRIVATE HANDWRITTEN INSTRUMENT & SIGNED by 5. Legitimated Children
parent*
 SECONDARY EVIDENCE:  Where the child dies before the celebration of the parent’s marriage, the
legitimation of the child shall benefit their DESCENDANTS.
 OPEN & CONTINUOUS POSSESSION of status of legitimate child^
 Any other means allowed by ROC and Special laws^ I. Adoption
* --- in itself a voluntary recognition, does NOT require a separate action for judicial 1. Domestic Adoption Law (RA 8552)
approval
 Relationship established by adopter-adoptee does not extend to other
^--- a JUDICIAL ACTION is essential in order to establish child’s acknowledgement relatives
 Adopted –XXX-- Ascendants & Collaterals of adopter
 Although the WILL was not presented for probate or it was revoked before death,
it still constitutes a PUBLIC DOCUMENT or a PRIVATE HANDWRITTEN  Adopted –XXX—Legitimate Children of Adopter AFTER adoption
INSTRUMENT enough to establish legitimate filiation  Children of Adopted –XXX--- Adopter
 Birth certificate NOT SIGNED by the alleged father is not competent evidence.  Who Can Adopt (listed are uncommon reqs only):
 At least 16 years older than adoptee except when –
3. Illegitimate Children o Biological parent
o Spouse of the adoptee’s parent
 Establishment of illegitimate filiation
 In a position to support & care for his/her children in keeping with the
 May be brought during LIFETIME of the CHILD means of the family
-if action is based on PRIMARY EVIDENCE.  Additional reqs for Aliens (listed are uncommon reqs only):
 Must be brought during LIFETIME of alleged PARENT  Living in PH for 3 CONTINUOUS YEARS prior to filing & MAINTAINS
- if action is based on open & continuous possession of status; other such residence until decree is entered
means
 Certified that he has the LEGAL CAPACITY to adopt in his/her country
 His Govt allows adoptee to enter his country and reside there
permanently as an adopted child
 Residency & Certification of Legal Capacity for aliens may be waived:
 Adopter is former PH citizen who is adopting a relative within 4th
degree
 Adopter seeks to adopt LEGITIMATE CHILD of Filipino spouse
 Adopter is married to PH citizen who seeks to adopt jointly a relative of
the latter within the 4th degree
Note: Waiver NOT APPLICABLE to aliens married to a FORMER FILIPINO
 DSWD must certify the child as legally available for adoption as a prerequisite
for adoption proceedings.
 Adoption does not confer citizenship of the adopter to the adopted.
 Adopter may not file an action for recission because adoption is in the best
interest of the child, however adopter may DISINHERIT the child based on
certain causes.
2. Law on Inter-Country Adoption (RA8043)
 It must be satisfactorily shown that child CANNOT BE ADOPTED LOCALLY.
 Who can adopt (listed are uncommon reqs only)
 At least 27 yrs old and at least 16 yrs older than adoptee
 If married, spouse must jointly file for adoption
 Eligible to adopt under his/her national law
 Agrees to uphold the basic rights of child as embodied under UN
Convention
 Adoptee must be below 15 yrs old & a legally-free child
 Adoption Process
 Family Selection/Matching Process
 Applicant’s acceotance
 Pre-departure Preparation of the Child
 Physical transfer of the child – adopter shall personally fetch child here
in PH and stay for at least 5 days to bond.
 Trial Custody – it shall last for 6 months
 Petition for Adoption – if satisfactory pre-adoptive relationship, board
shall transmit an Affidavit of Consent to the Adoption.
 Decree of Adoption
J. Support
1. What it comprises – everything indispensable for sustenance.
2. Who are obliged to give support
 Wife is entitled to expenses of the litigation
 If a wife is forced to leave the conjugal home for justifiable cause, she is
entitled to SEPARATE MAINTENANCE
3. Source of support – separate property for illegitimate children and brothers &
sisters
4. Order of support- Spouse > Descendants > Ascendants > Brothers & Sisters
5. Amount of support – It shall be in proportion to the MEANS of the provider & the
NEEDS of the receiver, it can be subject to changes bec amount is variable and thus
no final judgement.
6. Manner and time of payment- DEMANDABLE from the moment of necessity for it
arises. PAYABLE from the time of extrajudicial demand.
7.Renunciation &termination- validity of marriage can be collaterally attacked in
action for support.
8. Support pendent lite- defacto separation does not affect ACP/CPG, except that
spouse who leaves home w/o just cause shall not be entitled to support.
9. Procedure in applications for support – When theres dispute in filiation of child
claiming for support, an order is issued only if paternity is established by clear &
convincing evidence.
K. Parental Authority
1. General Provisions – may NOT be transferred EXCEPT through: ADOPTION,
GUARDIANSHIP and Commitment of child to entities ENGAGED in CHILD CARE.
2. Substitute parental authority – grandparents, oldest sibling over 21 y.o; child’s
actual custodian over 21 y.o. court appointed guardian; SUBSIDIARILY LIABLE for
damages caused by minor
3. Special parental authority – schools, entities engaged in child care; PRINCIPALLY
& SOLIDARILY LIABLE for damages where such minor is under their custody,
supervision or instruction.
 To be liable there must be a finding that their NEGLIGENCE is the PROXIMATE
CAUSE of the injury caused by the minor under their supervision.
1. Cause of Emancipation- attainment of age of majory 18 yrs old
2. Effect of Emancipation- person emancipated becomes responsible for all his acts
M. Summary Judicial Proceedings in the Family Code
N. Use of Surnames
 When Legal Separation is granted, wife SHALL SRILL continue to her name &
surname employed before the legal separation. This is mandatory. E.g. her
husband’s surname.

4. Effects of parental authority over the child’s person – shall be civilly liable for the O. Absence
injuries and damages caused by the unemancipated children under their personal 1. Provisional measure in case of absence- judge may appoint a person to represent
authority. absentee
5. Effects of parental authority over the child’s property- if property market value or Requisites:
annual income of child exceeds 50k, parents required to furnish a BOND not less
than 10% the amount of the property, to guarantee the performance of obligations as  Person disappears from domicile
guardians.  His whereabouts are unknown
 He did not leave an agent to administer his property
6. Suspension or termination of parental authority—in no case shall person exercising
special parental authority (school,etc) shall inflict corporal punishment upon the child.
2. Declaration of absence – GR: 2 years since last receipt of news about absentee
7. Solo parents (Rep. Act No. 8972)
Exception: 5 years in case absentee left an agent to administer
 Benefits of SPs whose INCOME BELOW the poverty threshold property.
 Comprehensive Package of Social Development & Welfare Services 3. Administration of the Property of the Absentee – spouse-administrator cannot
 Educational Benefits alienate or encumber property without prior JUDICIAL AUTHORITY.
 Housing Benefits
 Medical Assistance 4. Presumption of death
 Flexible Work Schedule***
 7 years – all purposes except succession
 Right to be protected against Work Discrimination***
 10 years- opening of succession
 Parental Leave***
 5 years - after age of 75, all purposes INCLUDING succession
*** Benefits of SPs whose INCOME ABOVE the poverty threshold  2 years – all purposes INCUDING division of estate
o Vessel lost at sea/ airplanes missing
L. Emancipation o Armed forces in war
o In danger of death under other circumstance

 Purposes of Remarriage
 Absence of 4 YEARS + well founded belief that absent spouse is dead
- there must be a DECLARATION OF PRESUMPTIVE DEATH of
absentee
 Absence of 2 YEARS + well founded belief that absent spouse is dead +
under danger of death circumstances
P. Civil Registrar
 RA 9048 Correction of Error in NAME
 Clerical/ Typographical Error – visible to the eyes/ obvious to the
understanding
 First name or Nickname – ridiculous, tainted w/ dishonor or extremely
difficult to write or pronounce; new first name is habitually &
continuously used.
 RA 101172 Correction of Error in BIRTHDAY and SEX
 Correction of the DAY and MONTH in date of birth (NO CHANGE OF
YEAR)
 Correction of the SEX- must not have undergone sex change or
transplant
II. Property
A. Classification of Property
1. Immovables
 By Nature – cannot be moved from place to place.
 By Incorporation – attached to immovable in a fixed manner as an INTEGRAL
PART
 By Destination - with the PURPOSE & INTENTION of attaching them
permanently.
- OWNER placed it to tend DIRECTLY to meet the NEEDS of
said industry.
 By Analogy – Contracts or other REAL RIGHTS over immovable property
 A building by itself may be mortgaged apart from the land.
 Real rights over land like mortgage must be REGISTERED in the Registry of
Property to constitute it as an immovable property by analogy.
2. Movables
 Consumables - Non-consumables (possibility of being consumed by their
use)
 Fungibles – Non-fungibles (possibility of being substituted by others of same
kind)
 Public Dominion – Patrimonial Property/Private ownership
 Conversion to patrimonial property must be made in an EXPRESS
DECLARATION in the form of a LAW duly enacted by Congress. Being declared
as alienable and disposable is not enough to convert such property.
 If it is a MAN-MADE/ARTIFICIAL ACCRETION like the dumping of boulders or
other filling materials then it is part of Public Domain.
B. Ownership
1. Bundle of rights
a. Actions to recover ownership & possession of real property
 Accion Interdictal/ Action for Ejectment – summary proceeding brought
WITHIN 1 yr.
o Forcible Entry – Force, Intimidation, Strategy, Threats & Stealth
(F.I.S.T.S.)
o Unlawful Detainer – refusal to vacate upon demand.
 Accion Publiciana – recovery of real RIGHT OF POSSESSION filed BEYOND 1
yr.
 Accion Reivindicatoria – recovery of OWNERSHIP and dominion of property.
b. Actions for recovery of possession of movable property
 Replevin – action for MANUAL DELIVERY of movable.
2. Distinction between real and personal rights
- Real rights confer upon its holder an autonomous power that can be DIRECTED
AGAINST the WHOLE WORLD.
- Personal rights gives such person a right to DEMAND FROM ANOTHER the  Accession Natural
fulfillment of a prestation TO GIVE, TO DO or NOT TO DO. o Alluvion – those received by the lands adjoining riverbanks GRADUALLY
receive from the effects of the CURRENT of the waters.
3. Modes of Acquiring Citizenship (see Section J. below) o Avulsion – when the CURRENT of waters SEGREGATES from an estate a
4. Limitations of Ownership KNOWN PORTION of land and transfers it another.
o Change of River Bed
 General Limitations o Formation of Islands
 Taxation  Compensation should be borne by the person who has been BENEFITED by the
 Eminent Domain accession.
 Police Power  During the period of the RIGHT OF RETENTION, builder cannot be compelled to
 Specific Limitations pay rentals. Because retention is a security for the payment of the required
 Legal Servitudes (easement of right of way, light and view, etc) indemnity.
 Must not injure the rights of a third person  SUBSIDIARY LIABILITY of land owner to pay the owner of materials is NOT
 Actions in a State of Necessity (interference needed to avert an imminent APPLICABLE if landowner demands the DEMOLITION or REMOVAL of the work.
danger)  The accretion does NOT AUTOMATICALLY become registered land just because
 Nuisance land of the riparian owner which receives it is covered by a Torrens title. It is not
 Imposed by the owner himself (voluntary easements)) entitled to PROTECTION of IMPRESCRIPTIBILITY unless such accretion is
 Imposed by the party transmitting the property either by Contract or Will registered too.
 The owner of the lands adjoining the old bed CAN COMPEL the owner of the old
C. Accession bed to acquire the same by paying a value that shall not exceed the value of the
area occupied by the new bed.
1. Right to hidden treasure – important requisite if discovery is made on property of
another is that the finder must discover it by chance. b. For movables – accession only exists if separation is not feasible without
substantial injury.
2. Rules of Accession – “Accessory follows the Principal”
 Adjunction or Conjunction – each of the movables united preserves its own
a. For immovables
nature.
 Accession Discreta – ownership over everything which is PRODUCED:  Commixtion (solids) or Confusion (liquids) – the components lose their identity.
 Natural Fruits  Specification – transformation of another’s material by the application of labor,
 Industrial Fruits into a thing of a different kind.
 Civil Fruits
D. Quieting of Title
 Accession Continua – ownership over everything which is ATTACHED thereto
 Accession Industrial 1. Requisites
o Building
o Planting  Action to Quiet Title
o Sowing  Claimant must show that there is an:
 >>> Instrument ; >>> Record; >>> Claim; c. Joint Purchase h. Easement of Party Wall
>>> Encumbrance; >>>Proceeding d. Succession i. Contract
 Which constitutes or casts a: e. Donation j. Occupation
>>> cloud; >>> doubt;
>>> question; >>> shadow; 3. Rights of co-owners
 Upon the owner’s title to or interest in real property  Share in the Benefits and Charges
-- Proportional to their respective interests
 Action to Prevent a Cloud  Use the Thing Owned in Common
 Plaintiff has title or interest to a real property  Bring an Action in Ejectment
 Defendant is bent on creating a cloud. It must be imminent not merely  If plaintiff co-owner claims to be the sole owner, the action will be
speculative. dismissed
 Unless the defendant is restrained, the title or interest of plaintiff will be  Compel others to Contribute to the Expenses of Preservation & Taxes
prejudiced.  CO need not pay if he renounced his undivided interest as equivalent
2. Distinctions between quieting title and removing/preventing a cloud to his share in the expenses & taxes
 Expenses to Improve/ Embellish – APPROVAL OF MAJORITY
Quieting a Title is to put a stop to vexatious litigation in relation to the property. While  Expenses for Pure Luxury – NOT REFUNDABLE, not for preservation
Removing a cloud pertains to the cancellation, delivery, removal or release of an  To Reimbursement for NECESSARY Repairs
encumbrance which can be considered a claim.  Lack of notice even if practicable does NOT EXEMPT others to
contribute. CO that advanced them have burden of proof, expenses
3. Prescription/ non-prescription of action were properly incurred.
 Plaintiff is IN POSSESSION – does NOT PRESCRIBE  Majority OPPOSE REPAIRS – if it resulted to damages later on, the
 Plaintiff is NOT in possession opposition shall be RESPONSIBLE for DAMAGES.
 Plaintiff is a possessor WITH a real right – 10 years  Oppose ALTERATIONS ( permanent change/ an act of ownership)
 Plaintiff is the OWNER – 30 years  UNANIMOUS CONSENT needed
 Full Ownership of his part & its Fruits and Benefits
E. Co-Ownership  CO may ALIENATE, ASSIGN, MORTGAGE and SUBSTITUTE
ANOTHER FOR ITS ENJOYMENT, as far as his ideal share is
1. Characteristics of Ownership concerned.
 The object is not physically divided, the ideal share of the whole  Partition
 No mutual representation by the co-owners  10 years – parties can agree to keep the thing undivided.
 It is a trust & every co-owner is a trustee for the rest -- This may be extended by a NEW AGREEMENT.
 20 years – donor or testator may prohibit partition
2. Sources of co-ownership  Redemption
a. Marriage – ACP or CPG f. Chance k. Condominium  Participate in Administration of Property Owned in Common
b. Cohabitation g. Hidden Treasure
  Approval of the MAJORITY of the COs who represent the
CONTROLLING INTEREST is needed for any resolution.
 If approved resolution are SERIOUSLY PREJUDICIAL , Court may
intervene
o Acts for Alterations (sale, mortgage, assignment) – ALL
o Acts of Administration- MAJORITY of CO’s representing Controlling Interest
o Improvement/Embellishing the thing/ Useful Expenses - MAJORITY…””
o Lease
 Personal Property – MAJORITY
 Real Property
 Recorded in ROP, regardless of duration – ALL
 Not recorded in ROP, duration >1 year – ALL
 Not recorded in ROP, duration <1 year - MAJORITY
4. Termination of co-ownership
>>> Total Destruction of thing >>> Partition or Division
>>> Merger of all interests in 1 person >>> Sale of Property
>>> Acquisitive Prescription >>> Termination of Period Agreed Upon
 Traditio brevi manu- transferee already had possession under different
title
 Traditio constitutum possessorium- TFE continues possession but not as
owner
 Fact that it is subject to our will
 Traditio simbolica – delivering an object & placing thing under TFE’s
control
 Traditio longa manu- TFR points tp TFE the things being transferred or
both consented that delivery has been effected
 By the proper acts & legal formalities established for acquiring such right
- acquisition by Just Title
 What DOES NOT Affect Possession?
 Acts merely TOLERATED
 Acts executed CLANDESTINELY & W/O THE KNOWLEDGE of the possessor
 Acts of VIOLENCE as long as the possessor OBJECTS thereto
 To constitute as foundation of prescriptive right, possession must be under CLAIM
OF TITLE. It must be ADVERSE.

 At the time of dissolution of marriage, conjugal property ceases to belong to 3. Effects of Possession
the Conjugal partnership and becomes community property by OPERATION
 Entitlement to FRUITS
OF LAW. Thus, Surviving Spouse may alienate, assign or mortgage her
 Fruits
UNDIVIDED SHARE
GF- entitled to all fruits until possession is LEGALLY INTERRUPTED
F. Possession  Fruits still pending
GF- entitled PRO-RATA to fruits already growing when possession was
1. Characteristics interrupted
 Entitlement to EXPENSES
 Material occupation / Occupation in fact
 Necessary Expenses
 Intent to Possess (animus possidendi)
GF - right of retention until reimbursed
 Jus Possessionis (Right of Possession)
 Useful Expenses
 Jus Possidendi (Right to Possess)
GF – right of rete ntion until reimbursed
2. Acquisition of Possession --can remove improvements as long as it won’t cause damage to the
principal thing
 Material Occupation/ Exercise of a right  Ornamental Expenses/ Expenses for Pure Luxury
GF – NO Refund
 -- can remove improvements as long as it won’t cause damage to the
principal thing
4. Loss or unlawful deprivation of a movable
Doctrine of Irrevindicability – possession in GF of a movable is PRESUMED
OWNERSHIP. It is equivalent to a title. But merely presumptive because it can be
defeated by the true owner
 Possession should be in GF
 Former owner VOLUNTARILY PARTED with the possession of the thing
 Possession is IN THE CONCEPT OF OWNER
Exception: True owner may recover it without reimbursement if proven:
 Ownership of the thing
 Loss or Unlawful deprivation; OR
 Bad faith of the possessor
Exception to the Exception:
 Owner acts negligently; OR
 Voluntarily parts with the thing owned; OR
 Possessor acquired it in GF at a PUBLIC SALE.
- Owner must first REIMBURSE the price paid by the GF possessor
 Period to Recover Movables
 8 years – from time possession is lost whether GF or BF
 4 years – action prescribes if there is UNINTERRUPTED POSSESSION IN
GOOD FAITH
 No prescription – if possessed through a CRIME
5. Possession in concept of owner, holder, in one’s own name, and in name of
another
 In one’s own name -FACT of possession & RIGHT of possession is found in same
person
 In the name of another- mere instrument of another in the exercise of latter;s
possession
 Holder with ownership belonging to another - one who acknowledges in another a
superior right which he believes to be ownership. E.g. lessees
 Owner – may be exercised by the owner ship or one who claims to be so.
-- shows overt acts which tend to induce the belief on the part of others that
he is the owner. May eventually become the owner by prescription
6. Rights of Possessor
 Good Faith
- one who is unaware that there exists a flaw which invalidates his acquisition of
the thing.
 Possessor has presumption of CONTINUITY of good faith
 To consolidate title by prescription, possession mus be under claim of
ownership and it must be PEACEFUL, PUBLIC & UNINTERRUPTED
 Non-interruption of possession during intermediate period
 Bad Faith
 Requisites:
o Possessor has a TITLE or mode of acquisition
o There is a FLAW or DEFECT in said title
o Possessor is AWARE of the flaw in the title
 Obligations of Possessor in Bad Faith (impt ones only):
o Liability to deterioration/loss of a thing possessed even in fortuitous events
o Reimburse value of fruits & which the legitimate possessor could have
received
7. Loss or termination of possession
 by ABANDONMENT of the thing
 by ASSIGNMENT made to another either onerous or gratuituous
 by DESTRUCTION or TOTAL LOSS
 by possession of another for MORE THAN 1 YR, but real right is not lost till 10
years
 ACQUISITIVE PRESCRIPTION
 recovery by ANOTHER LAWFULLY ENTITLED person/entity
G. Usufruct
1. Characteristics
 it is a REAL RIGHT for temporary use & enjoyment of another’s property
 it may be WHOLE or PART of the fruits of the thing, it is TRANSMISSIBLE
 Must preserve the form or substance of the thing
2. Classification
 Manner of Creation: Voluntary – Legal --- Mixed
 Number of Beneficiaries: Simple – Multiple – Simultaneous – Successive
 Object: Normal (non consumable) – Abnormal (consumable) – Quasi-usufruct
 Effectivity: Pure – With a term – Conditional
 Extent: Fruits Total – Partial; Object  Singular--Universal (all of owner’s
property)
 If UF’s constituted SIMULTANEOUSLY: All UFs must be ALIVE or at least
CONCEIVED
 IF UF’s constituted SUCCESSIVELY:
 By Donation – ALL UFs must be alive at the time of donation
 By Will – there should only be 2 UFs, BOTH must be alive at time of testator’s
death
 Obligations on Usufruct over Property that Deteriorates:
 Return the thing in the condition in which they are found at the expirations of
the usufruct despite ordinary defects produced by age and time.
 Obligations on Usufruct over Consumable Property Obligations:
 If appraised at time of delivery – pay appraised value
 If not appraised – Return same good in same quality & quantity; OR
-- Pay Current price at the time of cessation of usufruct
3. Rights & Obligations of Usufructuary
 Rights (complete pnemonics SERIAL-ABE)
 Right to the Thing and its Fruits
(S.E.R.3.I.A.L.: Set-off, Enjoy, Receive, Remove, Retain, Improve, Accession,
Lease)
 Right to Lease the thing
Lease executed by usufructuary before the termination of such usufruct &
subsisting after the termination MUST BE RESPECTED. But the RENTS for the
REMAINING PERIOD will belong to the OWNER.
Lease executed by the owner BEFORE the creation of usufruct is NOT
EXTINGUISHED by such usufruct
Future crops may be sold but such sale would be void if usufruct terminates
prior to harvest of future fruits.
Usufructuary-lessor is liable for the acts of the substitute-lesses
 Right to Improve the thing
 Not entitled to indemnification
 Option to remove improvements belong to the usufructuary
 Right to Set Off Improvements
 Right to Mortgage or Alienate the Right of Usufruct
 (A.B.E. – Alienate, Bring Action, Exercise all rights)
 All contracts he may enter shall terminate upon the expiration of the usufruct
 Obligations (important/uncommon ones only)
 BEGINNING
 Make Inventory EXCEPT:
o No one will be injured
o Title constituting it excused the making of one;OR already made one
themselves
 Give Security EXCEPT on certain conditions (check codals)
 DURING (C.A.P.C.O.R.N)
 Take CARE of the property as a good father of the family
 ALLOW IMPROVEMENTS by naked owner provided its not prejudicial to
UF’s right
 PAY a.i.d.e. (annual taxes, interest, debts, expenses for litigation)
 COLLECT Credit
 Make ORDINARY Repairs
 REPLACE Animals
 NOTIFY naked owner of Urgent Repairs & Preducial Acts by 3rd persons
 TERMINATION (R.I.P.)
 RETURN the thing
 INDEMNIFY the naked owner for loss caused by UF’s negligence
 PAY proper interest on taxes & legal interest for extraordinary repairs
4. Rights of the Owner
 Owner may ALIENATE the property, but UF must be respected by new owner
 If easement is PERPETUAL, consent of both UF and NO must be obtained.
5. Extinction, termination and extinguishment
 DEATH of Usufructuary
 EXPIRATION of period of usufruct
o Juridical persons’ limit as usufructuary for 50 years only
 Fulfillment of any RESOLUTORY condition
 MERGER of usufruct & ownership in the same person
 RENUNCIATION of the usufructuary (made expressly or impliedly)
 TOTAL LOSS of the thing in usufruct
o NOT Insured
Both building & land; Owner does not rebuild
- UF continues over land & use materials + interest
Building only; Owner does not rebuild
- UF continues over land & use materials + interest
; Owner rebuilds
-Owner can occupy land &use materials ; pay UF during the
remaining period, the INTEREST on the value of the land &
materials
o INSURED
Premium paid by BOTH; Owner does not rebuild
-UF shall receive INTEREST on the insurance proceeds
; Owner rebuilds
-UF can continue enjoying the building
Paid by Owner only bec. UF refuses; Owner does not rebuild
-Usufruct continues over remaining land & materials + interest
; Owner rebuilds
-Usufruct DOES NOT continue on the new building, but owner
should PAY INTEREST on the value of land & materials
 TERMINATION of the right of person constituting the usufruct
 ACQUISITIVE PRESCRIPTION by a 3rd person
H. Easements
1. Characteristics
 Easement may exist even if they are not expressly stated or annotated on the
titles
 It is inherent or inseparable from the estate, merely accessory to the tenements
 Easement may be constituted only on a CORPOREAL IMMOVABLE PROPERTY
 There can be no easement over a usufruct & vice versa
2. Classification (important ones only)
 Its exercise: Continuous (incessant use) - Discontinuous (depended upon the acts
of man)
 Its existence: Apparent – Non-apparent
 Object of obligation: Positive – Negative
 No such thing as JUDICIAL EASEMENT – courts can merely declare the existence
of one if it exists by virtue of law or will of the parties
 Kinds of Easements (relevant ones only):
 Natural Drainage
 Aqueduct
 Right of Way
Requisites:
o There must be absolutely NO ACCESS to a public highway
o There is access but DIFFICULT/DANGEROUS TO USE, or GROSSLY
INSUFFICIENT
o Isolation of the property is NOT DUE to Dominant Owner’s own acts
o There is PAYMENT of indemnity
WIDTH of the easement shall be that which is SUFFICIENT FOR THE NEEDS of
the dominant estate, and may change accordingly from time to time.
 Party wall
Consent of the other owner is needed if a party wants to open a window
 Easement of Light & View – can only be acquired through a 10 yr prescription
period
Positive: Opening a window through a party wall
-prescription begins upon the opening being made through another’s wall
Negative: Opening a window through a wall on the dominant estate
 -prescription begins upon FORMAL PROHIBITION upon the owner of the  Not to alter the easement or render it more burdensome
adjoining land. Rights of Servient Estate Owner (SEO)
2 METERS – req. distance between the window/balconies and the contiguous  To use the easement, provided SEO shall also be obliged to pay necessary
property expenses
60 CENTIMETERS – for side and oblique views towards such contiguous  Change the place or manner of use of easement provided its EQUALLY
property CONVENIENT
3 METERS–distance servient estate cant build w/ if title to have direct view is Obligations of Servient Estate Owner (SEO)
acquired  Pay for the expenses incurred for the change of location or form of the
 Drainage of Buildings easement
 Intermediate Distances (planting of trees, rules on branches, roots & fruits)
 Lateral & Subjacent support 5. Modes of Extinguishment (M.I.N.E.R.R.O.)
 Easement Against Nuisance  MERGER in the same person of the SEO and DEO – must be absolute, perfect,
3. Modes of Acquiring Easements definite
 IMPOSSIBILITY of use – unusable for all time
 By Title or by Something Equivalent to a Title  NON-USE for 10 years – inaction due to voluntarily abstention by dominant owner
-Absence of doc or proof showing origin of easement which is imprescriptible  EXPIRATION of the term/ Fulfillment of condition – for voluntary easements only
can be cured by a DEED OF RECOGNITION by owner of the servient estate or  Outright RENUNCIATION of the DEO – must be specific, clear and express
FINAL JUDGEMENT  REDEMPTION agreed upon between the owners
 By Law/Legal Easements  OTHER causes- e.g. termination of right of grantor of the voluntary easement, etc.
 By Will of Owner/ Voluntary Easements
-PERPETUAL Voluntary Easements need consent of both usufructuary & naked I. Nuisance
owner 1. Nuisance per se- nuisance at ALL TIMES & under ALL CIRCUMSTANCES
 By Prescription 2. Nuisance per accidens - depends upon certain conditions & circumstances, its
-CONTINUOUS & APPARENT easements may be acquired by 10 YEARS existence being a QUESTION OF FACT. There must be prior REASONABLE NOTICE
prescription to the person alleged to be maintaining the nuisance per accidens
- No need for good or just title 3. Liabilities
Example: Easement of Light & View
 Successive Owner or Possessor of property may be held liable if he has ACTUAL
4. Rights & Obligations of the owners of the dominant & servient estates KNOWLEDGE of the existence of the nuisance, and it is WITHIN HIS POWER to
abate the same but he FAILS or REFUSE to do so.
 Rights of Dominant Estate Owner (DEO)
 Granted the right to use principal easement & ALL ACCESSORY SERVITUDES 4. No prescription
 Obligations of Dominant Estate Owner 5. Criminal prosecution as remedy
 If established for a particular purpose, the easement cannot be used for a 6. Judgment with abatement as remedy
different one 7. Extrajudicial abatement as remedy- district health officer is in-charge
 Notify the SEO before making repaird
  Abatement without judicial proceedings:
 Must be REASONABLY & EFFICIENTLY exercised
 Means employed must NOT BE UNDULY OPPRESSIVE on individuals
 Only the NECESSARY injury of rights must be done to accomplish abatement
 NO RIGHT TO COMPENSATION if property taken/destroyed is a nuisance
8. Special injury to Individual – demand be made first upon the owner but it was
rejected, abatement approved by district health officer & executed with PNP. Value is
less than 3k.
9. Right of individual to abate a public nuisance
10. Right to damages- Abatement & Claim for damages are cumulative remedies
11. Defenses to action – replevin, enjoin the sale of the property, etc.
12. Who may sue on private nuisance – Civil action OR Extrajudicial Abatement
J. Modes of Acquiring Ownership
1. Occupation
a. Characteristics- the inconvenience caused by the lapse of time should be
borne by the party negligent in the assertion of his right.
b. Requisites
c. Periods
B. When Prescription is Inapplicable
1. By offender- can never acquire movable possessed through crime of theft, estafa,
etc.
2. Registered lands
3. Actions to demand right of way; to abate a nuisance – not extinguished by
prescription
4. Action to quiet title if plaintiff is in possession
5. Void contracts
6. Action to demand partition; distinguished from laches
*Estoppel by laches – UNREASONABLE DELAY in bringing a cause of action before
the court.
7. Property of public dominion EXCEPT PATRIMONIAL PROPERTY

>>> Hunting & Fishing >>> Finding Hidden Treasures C. Prescription or Limitation of Actions
>>>Finding Abandoned Movables >>> Finding movables which never had an 1. To recover movables
owner 2. To recover immovables
3. Other actions
2. Donation – refer to attached tables pg. 195 – 203
3. Prescription – acquisitive prescription is deemed to have acquired the right at the  4 YEARS
moment the prescription began to run, once the period is completed. Retroactive.  Reconveyance: from discovery of fraud
 Injury to rights of plaintiff
III. Prescription  Quasi-delict
A. Types of Prescription  10 YEARS
1. Acquisitive  Reconveyance based on implied or constructive trust,alleged fraudulent
a. Ordinary- possession in GF with just title registration
b. Extraordinary- possession only, no need or title & in BF.  Action to foreclose a mortgage: from principal obligation becomes due &
 Movable = 4 years – Ordinary; 8 years - extraordinary demandable
 Immovable- 10 years- Ordinary; 30 years – extraordinary  Actions upon: 1. Written contract, 2. Obligation created by law, 3. Judgement
 Possession in the CONCEPT OF AN OWNER, PUBLIC, PEACEFUL &  6 YEARS
UNINTERRUPTED  Oral Contract
2. Extinctive  Quasi-Contract
  5 YEARS – all actions where periods NOT FIXED BY LAW  The CLASS or CAUSE that will benefit from the disposition
 1 YEAR  Governing law is the citizenship of the testator AT THE TIME of execution of the
 Forcible Entry & Unlawful detainer will, hence Joint Wills by naturalized Americans that were former filo spouses
 Defamation are valid.
 Revoke donation on ground of ingratitude  Extrinsic evidence CANNOT include ORAL declarations of the testator
 Enforce warranty of solvency of debts in assignment of credits  Physical disability does not affect testamentary capacity. (e.g. blind, deaf-mute)
 Notarial Wills
D. Interruption  Formal Requisites:
o SUBSCRIPTION by the testator at the END/BOTTOM of the will
 When prescription runs again, it will be reset
o ATTESTATION CLAUSE by the witnesses shall state:
 For acquisitive prescription – interruption of possession for more than 1 year
 Number of pages
 For extinctive prescription – action is filed; written extrajudicial demand by the
 Fact that testator signed every page of the will in the presence of the
creditor is received; written acknowledgement of debt by the debtor
witnesses
IV. Succession  That the witnesses signed every page in the presence of testator &one
another
A. General Provisions o MARGINAL SIGNATURES- the testator & the witnesses shall sign on the
1. Definition LEFT MARGIN, every page except the last page
2. Succession occurs at the moment of death o PAGE NUMBERS – placed in the upper part of each page
 Opens after 10 years from disappearance of Absentee; 5 years only if 75 y/o o Acknowledged by a NOTARY PUBLIC
3. Kinds of Successors o Subscribed by witnesses IN THE PRESENCE OF THE TESTATOR & OF ONE
 Heirs (Voluntary, Compulsory, Legal) ANOTHER
 Legatees – gifts are personal properties -Disqualified are persons NOT DOMICILED in the PH, Convicted of
 Devisees - gifts are real properties falsification, etc.
 Right of Legal Redemption of other heirs as co-owner may be exercised within  TRUE TEST OF PRESENCE: is whether they might have seen each other sign,
30 days from notice by the vendor-heir that he’s selling his share to third had they chosen to do so, considering their mental & physical condition and
persons. If it is exercised, buying-heir is NOT DEEMED to have acquired it position with relation to each other at the moment of inscription of each
directly from the decedent. signature
 VOID WILL case: attestation clause did not state that the signature of the
B. Testamentary Succession
testator was written by a third person
1. Wills
 VOID WILL case: witnesses didn’t sign at the bottom of the attestatioin clause,
 Matters that CANNOT be left to the discretion of 3rd persons (important ones regardless if they signed at the left hand margin of the page.
only)  Qualifications for witnesses are NOT CONTINUING REQUIREMENTS.
 PORTION that the heirs will receive, if they are instituted by name/as specific  Holographic Wills
heirs.  Requisites:
 Whether or not a testamentary disposition is to be OPERATIVE o In writing
 o In a language known by the testator
o Entirely WRITTEN, DATED & SIGNED in the hand of the testator himself
 PROBATE must be by a witness that KNOWS the handwriting & signature of
the testator and EXPLICITY DECLARES that one found in the will is the
testator’s.
 CANCELLATION need NOT be authenticated but ALTERATION, like insertion,
of a holographic will MUST be authenticated.
 CODICIL- supplement or addition to a will, made after the execution of a will &
annexed to be taken as a part thereof. Codicil must be EXECUTED too to take
effect
 MODES OF REVOCATION
 By OPERATION OF LAW
 WILL, CODICIL or other WRITING EXECUTED (express or implied)
-implied revocation is when subsequent will have INCONSISTENT
PROVISIONS & there is COMPLETE INCOMPATIBILITY between the two
wills.
 PHYSICAL DESTRUCTION of the will
o Corpus – overt act of destruction; coupled with
o Animus revocandi –intent to revoke on the part of the testator
 General Rule: DOCTRINE OF ABSOLUTE REVOCATION
- If subsequent will becomes INOPERATIVE because of (1) INCAPACITY
of the heirs, legatees, devisee; or their (2) RENUNCIATION. The revocation remains
EFFECTIVE.
- If new will is VOID for FAILURE to comply w/ the FORMALITIES of
notarial will, then the revocation is NOT EFFECTIVE
 Exception: DOCTRINE OF DEPENDENT RELATIVE REVOCATION
- If testator himself provides that the revocation is subject to the condition
that the new will remain operative. Hence if there’s INCAPACITY or
RENUNCIATION by the heirs, etc. Previous will REMAINS EFFECTIVE.
 REPUBLICATION – to make operative a previously void or revoked will
 Will void to its FORM – REPRODUCE the dispositions in a subsequent
will
 REVOKED will- Execute a CODICIL REFERRING to the previous will
 Will VOID but not as to form- Execute a CODICIL referring to the previous
wil
REVIVAL- EXPRESS revocation of the second will DOES NOT REVIVE the first
will
 Probate court may look into the INTRINSIC VALIDITY of a will if it is
PATENTLY VOID
2. Institution of heirs
Presumption that institution is SIMULTANEOUS not successive.
The Omission must be COMPLETE and TOTAL for preterition to happen.
No preterition if the SPOUSE is omitted. Compulsory heir must be in the direct
line
3. Substitution of heirs (for voluntary heirs only)
 Simple/Vulgar-take place if OG heir has (1)PREDECEASE, (2) REFUSAL or (3)
INCAPACITY
 Brief/Compendious
- BRIEF is when 2 or more appointed substitutes for 1 heir, COMPENDIOUS is
vice versa
 Reciprocal- heirs instituted in UNEQUAL SHARES should be reciprocally
substituted.
 Fideicommissary Substitution –expressly made
o 1st heir(FIDUCIARY) takes the property upon death of testator
o 2nd heir(FIDEICOMMISSARY) AFTER SPECIFIED PERIOD or UPON
FDCRY’S DEATH
4. Conditional testamentary dispositions and testamentary dispositions w/ a term
Condition not to contract a SUBSEQUENT MARRIAGE if imposed by the
deceased spouse or its ascendants, descendants to the widow is VALID.
DISPOSITION CAPTATORIA- disposition w/ the condition that the heir will make
a provision in his will in favor of the testator or any other person shall be VOID.
MODAL INSTITUTION/MODE- imposes an obligation/charge upon an heir but it
does not affect the efficacy of his rights to the succession.
 CAUCION MAUCIANA- security given by the heir to secure compliance with a
mode.
Condition by testator NOT to alienate or transfer the property limited to 20
YEARS
5. Legitime (Refer to table in reviewer pg.353)
C. Legal or Intestate Succession
1. General provisions
a. Relationship
EXCLUSION THEORY (Rule of Preference Between Lines)
-Persons in the direct DESCENDING LINE exclude those in the direct
ASCENDING & COLLATERAL lines.
-Persons in the direct ASCENDING LINE exclude those in the COLLATERAL line.
CONCURRENCE THEORY (Rule of Equal Division)
- Relatives in SAME degree shall inherit in equal shares subject to exceptions
RULE OF PROXIMITY
-Relative NEAREST in degree excludes the more distance ones
EXCEPT when the right of representation takes place
CURTAIN BAR RULE
- the illegitimate family CANNOT INHERIT BY INTESTATE succession from the
legitimate family and vice versa. (see examples)
b. Right of representation
- right created by virtue of which the representative is RAISED to the PLACE and
DEGREE of the person represented, & acquires the rights which the latter would have
if he had inherited
Cases where representation is allowed:
(1) PREDECEASE (2) INCAPACITY or UNWORTHINESS (3)
DISINHERITANCE
Rules for Representation in the DIRECT LINE:
Only Legitimate Children (LC) can represent a Legitimate child (LCL) of the
decedent
Both LC and Illegitimate Children can represent an Illegitimate Child of the
decedent
Rules for representation in the COLLATERAL LINE:
Takes place only in favor of the children of brothers & sisters, whether full or
half-blood. And ONLY if they CONCUR w/ one or more uncle/s or aunt/s
If there’s repudiation BY ALL IN THE SAME DEGREE, no representation but
instead the following degree shall INHERIT IN THEIR OWN RIGHT.
Division shall be made PER STIRPES.
2. Order of intestate succession (check full table in reviewer, pg. 387)
If Surviving Spouse (SS) concurs w/ LEGITIMATE Bro & Sis, Nephews & Nieces
-1/2 estate for SP; 1/2 estate for LB, LS, Nephews & Nieces
If Surviving Spouse (SS) concurs w/ ILLEGITIMATE Bro & Sis, Nephews &
Nieces
-1/2 estate for SP; 1/2 estate for LB, LS, Nephews & Nieces
Legitimate Parents (LP) concurs w/ SS and Illegitimate Children (ILC)
-1/2 estate for LP; 1/4 estate for SS; 1/4 estate for ILC
Legitimate children (LC) concurs w/ SS & ILC
-SS has same share as 1 legitimate child; ILC gets ½ share of each LC
If first marriage is VOID for PSYCHOLOGICAL INCAPACITY, children are
LEGITIMATE HEIRS. There shares should be equal to the share of the other LC
in the 2nd marriage
If first marriage was declared VOID NOT FOR PSYCHOLOGICAL INCAPACITY,
children are ILLEGITIMATE HEIRS. Their share should be ½ of share of LC in
the 2nd marriage
D. Provisions Common to Testate and Intestate Succession
1. Right of accretion
If the part repudiated is the LEGITIME, other co-heirs shall succeed in their own
right.
Accretion in Testamentary Succession:
 Plurality of subject - Two or more persons to 1 inheritance
 Unity of object – called to the same undivided part in the free portion
  1 of them PREDECEASED, RENOUNCED, INCAPACITATED, SUSPENSIVE
CONDITION UNFULFILLED, VOLUNTARY HEIR CANNOT BE IDENTIFIED.
Accretion in Intestate Succession
 Several relatives in the same degree, 1 either REPUDIATED,
INCAPACITATED, PREDECEASED. His portion shall accrue to OTHERS of
the SAME DEGREE.
 For cases of Predecease & Incapacity, Right of REPRESENTATION
PREVAILS OVER Right of ACCRETION.
2. Capacity to succeed by will or intestacy – Absolute Incapacity OR Relative
Incapacity
Incapacity due to UNDUE INFLUENCE (impt/tricky ones only)
 WIFE of the Minister is NOT EXCLUDED bec it only speaks of relatives
 Individuals, Associations & Corporations NOT PERMITTED BY LAW to
inherit (this disqualified applies to BOTH intestate & testate)
Incapacity due to PUBLIC POLICY & MORALS
Incapacity due to ACTS OF UNWORTHINESS (impt/tricky ones only)
 ACCUSED the testator of crime w/ imprisonment of 6yrs & found
GROUNDLESS*
 Person CONVICTED of Adultery/Concubinage w/ spouse of the testator*
 Person CONVICTED of an ATTEMPT against life of testator and his/her
family*
***- Final judgment is necessary
3. Acceptance and repudiation of the inheritance
Voluntary Heir dies AFTER DEATH of testator – no acceptance or repudiation
-inheritance is transmitted to his heirs
If parents/guardians REPUDIATE the inheritance - JUDICIAL AUTHORIZATION
needed
Deaf-mutes who CAN READ & WRITE may accept personally, or though his
agent
Heir repudiates to the PREJUDICE OF HIS OWN CREDITORS - Creditor can
petition the court to authorize them to ACCEPT IT IN THE NAME OF THE HEIR
Implied acceptance examples:
 Heir renounces the same, gratuitously, for the benefit of 1 or more of his co-
heirs
 Heir renounces it for a price in favor of ALL his co-heirs INDISCRIMINATELY
4. Collation – purpose is to determine the legitime & the free portion
Imputation- the donations to compulsory heirs will be charged against the
legitime
Inofficious or excessive donations may be REDUCED in this order:
 Non-Preferred Legacies & Devices & Testamentary dispositions
 Preferred Legacies & Devises (stated in the will that that they are preferred)
 Donations inter vivos (from oldest to newest)
If grandchildren inherit in representation of their parents, they shall bring to
collation all that THEY HAVE RECEIVED & THEIR PARENTS WOULD HAVE
BEEN OBLIGED TO BRING from the decedent during his lifetime.
5. Partition & Distribution of Estate
VERBAL PARTITION as an act inter vivos by the decedent himself is valid. It will
only be effective after death.
LESION - when any one of the co-heirs received things, whose VALUE IS LESS,
BY AT LEAST 1/4 than the share to which he is entitled, the partition may be
rescinded.
20 years – period of indivision limit provided by the TESTATOR
10 years – CO-HEIRS agreed, estate shall not be divided. Renewable for
another 10 yrs
V. Obligations
A. General Provisions
1. Definition – a juridical necessity to give, to do or not to do.
2. Elements of an obligation – Juridical tie, Object, Subject
a) Prestation b) Passive subject/Obligor/Debtor c)Active
subject/Obligee/Creditor
3. Sources of obligations – 5 exclusive sources (L.C.QC.D.QD.)
a)Law b)Contracts c)Quasi-Contracts d)Delict e)Quasi-Delict o Omission of that diligence which is required by the nature of the obligation
and corresponds with the circumstances of the persons, of the time and
B. Nature and Effect of Obligations place
1. Obligation to give o Culpa Aquiliana – quasi-delict where negligence itself is the source of
obligation
 DUE DILIGENCE - Take care of thing with the DILIGENCE OF A GOOD FATHER o Culpa Contractual – negligence in performance of contractual obligation
of the fam o Culpa Delica (Criminal negligence) – negligence that results in criminal
 Creditor (C) has the right to the FRUITS from the moment the obligation to liability
deliver arises  DELAY
o Demand is indispensable before OR can be considered to be in delay
2. Obligation to do or not to do
EXCEPT:
 If only the Obligor (OR) can perform the obligation, hence the act cannot be done  Time is of the essence – the designation of time when thing is to be
by somebody else, the remedy is to RECOVER DAMAGES delivered was a controlling motive for the
 Remedies if obligor performs the obligation poorly: establishment of the contract
 Obligee (OE) can have it UNDONE  Demand would be useless – OR has rendered beyond his power to
 OE can have the obligation done by SOMEBODY ELSE at the EXPENSE of perform
the OR  Reciprocal oblgtn - delay only begins when 1 of the parties fulfill his
obligation
3. Transmissibility of obligations – take effect between the PARTIES, their ASSIGNS & o Compensation Morae- both parties are in delay
HEIRS  ANY MANNER THAT CONTRAVENES THE TENOR
 Fortuitous Event – could not be foreseen, or though foreseen, is inevitable.
4. Performance of obligations
 Even if there is FE, Liability subsists when:
 IDENTITY – obligations must be complied with precisely. What is obliged and o Debtor delays
what is performed must be identical. o Debtor promised the same thing to two or more persons
 INTEGRITY – compliance must be complete o Debtor/Obligor is also at fault
o Nature of obligation makes OR liable (Ex. Insurance)
5. Breach of obligations – total or partial breach; total non-compliance, defective o Liability from delict
compliance
6. Remedies available to creditor in cases of breach – ALL JUDICIAL in nature
 Modes of breach
 FRAUD  Principal Remedies
o It is the INTENTIONAL EVASION of the FAITHFUL PERFORMANCE of the  Specific Performance - actual accomplishment of a contract by a bound party
obligation  Substitute Performance – done by others at the cost of the obligor
o It is the DELIBERATE INTENTION to cause damage or prejudice  Equivalent Performance – Action for Damages
 NEGLIGENCE  Subsidiary Remedies
 Subrogatory action/ Accion Subrogatoria – case against the debtor’s debtor
 o C has a RIGHT OF CREDIT against D though it may not be liquidated at the
moment
o Credit must be DUE AND DEMANDABLE
o There’s FAILURE of D to COLLECT from 3rd persons (willfully or negligently)
o ASSETS in the hand of D are INSUFFICIENT
o Actions are NOT PURELY PERSONAL or inherent in the person of D
 Rescissory Action / Accion Pauliana - creditor will impugn the acts of the
debtor that is in fraud of the creditors.
o Plaintiff/Crdtr has a CREDIT PRIOR TO THE ALIENATION, although
demandable later
o D made a SUBSEQUENT contract conveying a patrimonial benefit to a 3rd
person
o C has NO OTHER LEGAL REMEDY to satisfy his claim/ Action of LAST
RESORT
o The act being impugned is FRAUDULENT
o 3rd person who received the property has been an ACCOMPLICE in the
fraud
Presupposes a judgment & issuance by court of WRIT OF EXECUTION for
satisfaction
 Action Directa – allows direct actions against third persons
C. Kinds of Obligations
1. Pure – no condition or period is attached, demandable at once
2. Conditional – a FUTURE & UNCERTAIN EVENT or a PAST EVENT UNKNOWN to
the parties
 SUSPENSIVE- happening of the condition or event GIVES RISE to the obligation
 RESOLUTORY- happening of the condition or event EXTINGUISHES the
obligation
 POTESTATIVE-depends upon the SOLE WILL of the PARTY
 CASUAL- depends on CHANCE or WILL of 3rd person
 MIXED - a mix of casual & potestative conditions
 Effects of Suspensive Potestative Condition:
 Depends on Will of Obligor/Debtor – Conditional Obligation is VOID
 Depends on Will of Obligee/Creditor - Conditional Obligation is VALID
 Not attached on birth of the obligation – VALID & Court must FIX PERIOD to
comply
 Effects of Positive Impossible Condition- makes whole obligation VOID unless
DIVISIBLE.
 If OR voluntarily prevents, its deemed CONSTRUCTIVE FULFILLMENT of
suspensive con.
 Rights upon fulfillment of Resolutory Condition
-MUTUAL RESTITUTION, the parties shall return to each other what they
received.
 Rights upon failure to fulfill suspensive condition
 Supposed obligation does not obtain obligatory force; obligation will not arise.
 OE may refuse to proceed w/ the agreement
 OE may waive the fulfillment of the condition
 Rules on DETERIORATION BEFORE fulfillment of suspensive condition
 Due to Debtor’s fault – Damages + 1)Rescission OR 2) Specific Performance
 Rules on IMPROVEMENT BEFORE fulfillment of Suspensive condition
 Due to Debtors Expense - reimbursed for necessary expenses only but NOT for
the expenses for the improvement itself or expenses for ornaments
 Rules on DETERIORATION UPON fulfillment of Resolutory condition
 Due to OR’s fault – 1) Rescission + damages; OR
2) Disregard the res. condition, proceed w/ the contract +
damages
 RECIPROCAL OBLIGATIONS – performance of one obligation is conditioned on
the fulfillment of the other obligation.
o Power to JUDICIALLY RESCIND is implied in reciprocal obligations
o No need to rescind an obligation if there’s still no obligation in the first place
(sus. con)
o Rescission can be carried out only when one who demands it can return
whatever he may be obliged to restore, together w/ their fruits & interest; Mutual
Restitution
o Rescission will only be permitted for such SUBSTANTIAL & FUNDAMENTAL
BREACH as would defeat the very object of the parties in making the agreement.
3. Obligation w/ a period or a term – a FIXED DATE or a day which must
NECESSARILY COME
  When the means of the debtor permits him to do so - VALID PERIOD not
condition.
 If there’s delivery by mistake, Debtor may recover it IF the period is for the
benefit of BOTH Creditor and Debtor. If GF – insofar as he was benefitted; BF-
w/fruits & interest
 Court may be asked to fix period:
 When Period is intended as can be inferred from the nature of the obligation
- no action for specific performance can be filed unless the period is fixed.
 When Period depends upon the will of the debtor
 When Debtor binds himself to pay when his means permit him to do so
4. Alternative or Facultative
 ALTERNATIVE– there’s 2 or more prestations but the debtor is obliged to
perform only 1
 FACULTATIVE- 1 prestation was agreed upon but D may render another in
substitution
 If D communicates his choice to C, the choice is effective even if C disagrees
with it.
 D cannot make choice due to C’s fault – D may RESCIND + DAMAGES
 D did not make a choice bec of his own fault – C may FILE CASE to COMPEL
HIM to make a choice. Only after making such choice, SPECIFIC
PERFORMANCE is available as remedy
 Even if D caused the loss of the other alternatives, he will NOT BE LIABLE if he
was not the cause of the loss of the LAST REMAINING alternative
 Even if there are remaining alternatives, D will always be liable for damages if the
other alternatives are lost due to his fault.
 Loss of 1 alternative through D’s fault – 1) claim any one of those subsisting +
damages
2) price of the 1 lost alternative + damages
 For Facultative obligations – if the principal is lost or void, no need to give the
substitute
 For Facultative obligations, the option to substitute is always with the debtor
5. Joint and Solidary Obligations
 SOLIDARY – each of the Ds is liable for the entire obligation & each of the Cs is
entitled to demand the satisfaction of the whole obligation from any or all of the
Ds.
 JOINT – D’s is liable only for a proportionate part of the debt and the C is entitled
to demand only a proportionate part of the credit.
 INDIVISIBLE- not susceptible of being executed or performed in parts by reason
of their nature, or as provided by law or their agreement
 Effect of Joint Indivisible Obligations:
o Act of one Joint C. does not prejudice all & the collective acts of all is
required
o C must demand performance only against ALL JOINT Ds.
o Non-compliance by one D will CONVERT the obligation into one for
DAMAGES
 Demand against one does not preclude further demand against others so long
as the debt is not fully paid.
 Rules on Active Solidarity (Solidarity among creditors - SC)
o Any 1 of the SCs may extinguish the obligation (novation, compensation,
remission, etc.) subject to being liable to the other SCs who did not consent
o But SC may not do anything prejudicial to other SCs
o SC must get CONSENT of other SCs before ASSIGNING or TRANSFERRING
his right in the credit to 3rd persons
 Rules on Passive Solidarity (Solidarity among debtors- SD)
o Extension of time given in favor of one SD will not release the other SD.
o SD may raise defenses that pertain to one debtor only, against the creditor
o SD who has right of reimbursement is entitled to INTEREST if he paid on due
date
o SD who obtained release of entire obligation is NOT ENTITLED to
reimbursement
o SD who is released from his obligation by a creditor, remains to be an SD
- if remission was made AFTER PAYMENT of whole obligation, SD who paid
is still entitled reimbursement from the SD whose obligation was remitted.
- SD who was released/remitted is still liable for the share of an insolvent SD
6. Obligations with a penal clause -makes one party liable or makes him perform
another prestation if principal obligation is not fulfilled
  If you have penal clause w/ amount agreed upon in case of liability, then
obligee have proof of liability which more than the amount in the penal clause.
The amount in the PENAL CLAUSE would be followed because: no proof of
damage is necessary in order for a penal clause to be enforced.
D. Extinguishment of Obligations
1. Payment or performance
 3rd person may not compel C to accept payment/perf, C may insist that D should
pay
 Right of 3rd person if payment is WITH consent of D – 1) Reimbursement; 2)
Subrogation
 Right of 3rd person if payment is WITHOUT consent of D
 LIMITED RIGHT of reimbursement – up to what is beneficial to D
 NO RIGHT of subrogation
 Proof is needed to prove that payment by D to 3rd persons is binding w/ the
creditor EXCEPT WHEN:
 If after payment, 3rd person acquires C’s rights
 If C ratifies the payment to the 3rd person
 If by creditor’s conduct, debtor has been led to believe that the 3rd person
had authority to receive the payment.
 Dacion in Payment/ Dacion in Pago – transmission of ownership of a thing by the
Debtor to the Creditor as an ACCEPTED EQUIVALENT of the obligation.
 Instead of original prestation, a DIFFERENT PRESTATION is performed
 Parties AGREED that the perf. of the diff. prestation EXTINGUISHES the
obligation
 Even if C accepts the check, obligation is not deemed paid UNLESS:
 Commercial paper/document is ENCASHED; or
 Paper/Doc is IMPAIRED due to the fault of the creditor like when C failed to
encash it for a long period of time & the 3rd person owning the account
became insolvent.
- this exception does not apply if the instrument delivered was issued by D
himself because D’s obligation remains even if the check becomes stale.
 Delivery of mercantile documents may be acceptable If what is being done is
NOT PAYMENT, but to EXERCISE A RIGHT. E.g. right to redeem
 Application of Payments, requisites:
 There are TWO OR MORE DEBTS
 The D & C in such obligations are THE SAME
 Obligations must be of the SAME KIND
 Obligations are ALL DUE & DEMANDABLE
 Payment made is NOT SUFFICIENT to pay all obligations
 If D & C don’t designate the debts’ order, application of payment is deemed by
operation of law:
 Applied to the INTEREST FIRST before application to the principal
 Applied to the Debt that is MOST ONEROUS, most to least onerous
examples below:
o Debt in which D is solidarily liable with another
o Debt secured by mortgage
o Interest bearing debt
o Unsecured debt
 If same burden & terms, applied IN PROPORTION to the debt
 When D designates which debt the payment should be applied for, it is not
binding if what he is paying is less than the amount that is due. C cannot be
compelled to accept partial payments.
2. Loss of determinate thing due or impossibility or difficulty of performance,
EXCEPTIONS:
 THEORY OF IMPREVISIBILITY- when prestation has become so difficult as to be
manifestly beyond the contemplation of the parties, OR may be released from it.
 Change in circumstance is UNFORESEEABLE at the time of the execution
 Makes the performance of the contract EXTREMELY DIFFICULT but not
impossible
 Must be NOT DUE to the fault or negligence by any parties
 Contact is for a FUTURE PRESTATION
3. Condonation or remission of debt
- act of liberality by which OE renounces the enforcement of the obligation which is
extinguished in its entirety or in part.
 Waiver of the accessory obligation does not result in the extinguishment of the
principal obligation
4. Confusion/Merger
- takes place from the time the characters of C & D are merged in the same person.
5. Compensation
- extinguishing to the concurrent amount the obligations of persons who in their
own right and as PRINCIPALS are RECIPROCALLY DEBTORS & CREDITORS of
each other.
 Each one of the obligors must be bound PRINCIPALLY, nnot as surety or
guarantor, etc.
 Effect is BY OPERATION OF LAW, but parties may waive the benefit of
compensation
 If not all requisites are present, parties can do facultative or voluntary
compensation
 Interested parties (guarantor, surety) can also claim the DEFENSE of
compensation
 Important requisite is that NEITHER obligation should have any retention or
controversy, commenced by 3rd persons & communicated in due time to the
debtor
o One obligation is being claimed by a 3rd person who filed a case stating
he is the real creditor; or
o a 3rd person attached or garnished one obligation
 Rules on Assignment/ Transfer before Compensation concurs (check examples
pg 529)
 If notice is given at the time of transfer of credit
o Compensation of all debts DUE PRIOR to the transfer is effective but
ineffective as debts DUE AFTER the transfer
 If assignment was made w/o notice to or knowledge of debtor
o D may setup the defense of compensation of all credits PRIOR TO
OBTAINING KNOWLEDGE of the assignment,
6. Novation
- the extinguishment of an obligation by a subsequent one which terminates
it,either by changing its object or principal conditions, by substituting a new debtor in
place of an old one, or by subrogating a third person to the rights of the creditor.
 a PREVIOUS VALID obligation
 there must be an AGREEMENT of the parties concerned to a NEW
CONTRACT
 there must be EXTINGUISHMENT (express, implied) of the OLD CONTRACT
 there’s a VALID NEW CONTRACT
 Cases when there is Extinctive Novation
 Pure obligation turned to an Obligation w/ suspensive or resolutory condition
 Amount to be paid is increased in new obligation
 Parties agreed to reduce the period
 Different object is delivered
 Subjective Novation – when it’s the Ds or Cs that are changed
 Expromission – initiative does not come from the Debtor
o Consent of D is not even necessary
o Insolvency of new D before or after the novation DOES NOT revive the
obligation of the old D
 Delegacion - initiative comes from the Debtor
o Consent of D, C and 3rd person are present
o Insolvency of new D REVIVES the obligation of old D if:
a) Insolvency is anterior – existing at the time of novation; AND
b) Insolvency is Public Knowledge or Known to the Debtor
VI. Contracts
A. General Provisions
 Contracts – it is a meeting of minds between two persons whereby one binds
himself with respect to the other, to give something
or to render some service.
1. Stages of contracts – 1) Negotiation, 2) Perfection, 3) Consummation
2. Classification
 As to the nature of consideration:
 Onerous – there is an exchange of correlative values
 Gratuitous – the mere liberality of the benefactor is the cause
  Remuneratory – party gives something to another because of some service
rendered or benefit given where such such service or benefit
was not due as a legal obligation.
 Basic Characteristics of Contracts:
 Autonomy – may agree on any terms as they may deem convenient provided
I it’s not contrary to law, morals, good customs, public order or
policy.
 Mutuality – binds ALL parties. The validity & compliance of contracts cannot
be left t to the will of one of the parties
 Relativity – takes effect between parties, their ASSIGNS and HEIRS.
 Obligatoriness – it’s the law between the parties & must be complied with in
GF
3. Essential requisites (C.O.C.)
 Consent
- manifested by the meeting of the offer & the acceptance upon the object & the
cause.
 Offer – a manifestation of willingness to enter into a bargain
-- Must be COMPLETE and DEFINITE in its terms
 Acceptance – signification of conformity with ALL the terms of the offer
-- Must be UNQUALIFIED and UNCONDITIONAL
 Cognition Theory – acceptance takes effect from the time it came to the
knowledge of the offeror.
 VICES OF CONSENT (Mistake, Violence, Intimidation, Undue Influence,
Fraud)
o Mistake – must be a mistake of fact & must refer to the substance of the
thing
o Violence – degree of physical constraint or danger ACTUALLY INFLICTED.
o Intimidation – exertion of moral force or compulsion; when a party is
compelled by a reasonable and well-grounded fear of an
imminent and grave evil upon his person or property.
o Undue Influence – any means employed to a party which he could not
well resist & which controlled his volition & induced him to
give his consent to a contract, which he wouldn’t have
entered otherwise
o Fraud – employment of insidious words or machinations of one of the
parties to induce the other to enter into a contract which, without
them, he would not have agreed to.
 Object - the thing or right which is the subject matter of the contract.
 Consideration – the reason that impels a party to assume an obligation under a
contract
 Inadequacy of the consideration will adverse the contract only if it is
coupled with other grounds like fraud, mistake or undue influence. Selling
a thing at a bargain will not invalidate the contract.
B. Formality – general rule is that no formality/solemnity is required for contracts
unless:
 Necessary for the VALIDITY of the contract
 Make the contract BINDING on 3rd PERSONS
 Allow PROOF of the EXISTENCE or ENFORCEABILITY of the contract
C. Reformation of Instruments
- filing of a case in order to have the document that constitutes the evidence of
the agreement to REFLECT the REAL INTENT of the parties. Purpose is not to
make a new contract but reform the same to reflect the true intention of the parties.
 Causes for Reformation
 Mutual Mistake
 One party was mistaken, other acted fraudulently or inequitably
 One party was mistaken, other knew but concealed the fact from the former
 3rd persons who drafted the doc was mistaken due to ignorance, lack of skill,
negligence or bad faith
 No reformation: 1) Gratuitous Contracts (donation,will); 2) if the Real Agreement
Is Void
 Parties can no longer ask for reformation if ACTION FOR SPECIFIC
PERFORMANCE is filed
D. Interpretation of Contracts
 Cardinal Rule is to seek the intention of the parties
  If words used are unambiguous: the contemporaneous, subsequent and
previous acts of the parties should be considered
 If settling the doubt is impossible: Interpretation should be such that involves the
LEAST TRANSMISSION of rights.
 Contracts of Adhesion – prepared by one party only while the other party merely
affixes his signature,Its construed in favor of the latter. E.g. Insurance, plane
tickets, credit card
E. Defective Contracts
1. RESCISSIBLE – contract should’ve been valid but by reason of injury/damage to
3rd persons, contract may be rescinded as a matter of equity. Here
are the grounds:
 Transfer of Property in Litigation/ Custodia Legis
 Transfer by Insolvent
- payment by an insolvent even if he cannot be compelled to pay a t the time he
made the payment is rescissible. His Insolvency must NOT be judicially declared.
- if insolvency is judicially declared, transfer is VOID.
 Lesion
– contract entered by a guardian or representative of an absentee or ward where
injury suffered by one who does not receive a full equivalent for what he gives in
a commutative contract. (Party suffered more than ¼ of the value)
-- contract in lesion must not require court approval OR there is no approval of
court.
 In Fraud of Creditors
-- it must be proven that both parties have acted maliciously and with fraud and
for the purpose of prejudicing the creditor.
-- BADGES OF FRAUD ex: vendee fails to take exclusive possession of all the
property, transfer made by D after suit against him has begun, etc.
 Rescission is the last resort. Party can’t rescind unless there is no other remedy
available
2. VOIDABLE - valid until annulled. Prescriptive period is 4 years. Here are the
grounds:
 Due to Incapacity of one party (MIDI)
- incapacity because of Minority, Insanity, Imbecility or Deaf-mute who cannot
write
 Due to Vitiated Consent (M. I. V. U. F.)
-- vitiated through Mistake, Intimidation, Violence, Undue Influence or Fraud
 3rd persons may file an action to annul if he is prejudiced in his rights with
respect to one of the parties and can prove in court the detriment which would
result to him.
 An Incapacitated person is not obliged to make any restitution except insofar as
he has been benefitted by the thing or price received by him.
 Effect of loss of thing due to fortuitous event, to be returned by plaintiff:
-plaintiff can compel defendant to return what he received, if plaintiff offers to
pay the VALUE of the thing he received at the TIME OF THE LOSS.
 Effect of loss of thing due to fortuitous event, to be returned by defendant:
- must return the VALUE of thing at the time of loss but WITHOUT INTEREST.
3. Unenforceable contracts – cannot be sued upon unless ratified. Here are the
ground:
 Due to Incapacity of Both Parties
 Due to Absence of Authority/ Legal Representation or acted Beyond his powers
 Due to violation of Statue of Frauds
o Agreement whose terms is not to be performed within a year from the making
- no longer applicable if one party has complete performed his obligation
o Special promise to answer for debt, default or miscarriage of another
- the promise should be COLLATERAL to the agreement, like surety.
o Agreement in consideration of marriage
o Sale of goods above P500
-Not applicable if buyer accepts & receives part of the goods or buyer paid
partially
o Lease for more than 1 year
-Not covered if the tenant/lessee is already in possession of the property
o Sale of real property or an interest therein
-Interest on land may include conveyance of Right of First Refusal
o Representation as the credit of 3rd person
  SOF is not applicable if contract is already wholly or partially  Natural obligations do not grant a right of action to enforce their performance, but
performed/executed. after VOLUNTARY fulfillment by the obligor. They authorize the RETENTION of
 Formality required for SOF is it should be in WRITING & SUBSCRIBED by the what has been delivered by reason thereof.
party E.g. payment of prescribed obligation, voluntary performance after dismissal of
 Ratification: by failure to object to the presentation of oral evidence to prove the case, etc.
same
VIII. Estoppel
4. Void or inexistent contracts – an absolute nullity and produces no effect.
 An ADMISSION or REPRESENTATION is rendered CONCLUSIVE upon the person
 Contrary to law, morals, good customs, public order or public policy making it, and cannot be denied or disproved as against the person relying
 Absolutely simulated or fictitious thereon.
 Cause or Object did not exist at the time of the transaction
 No need file an action so set aside a void contract BUT its necessary to file an IX. Special Contracts
ACTION FOR DECLARATION OF NULLITY so that plaintiff, if it’s the innocent A. Sales
party, may recover what he may have given by virtue of the void contract.
 If contract was a direct result of a PREVIOUS ILLEGAL CONTRACT, the second  One of the parties obligates himself to TRANSFER THE OWNERSHIP and TO
contract is also void for and has no leg to stand on. DELIVER A DETERMINATE THING, and the other party obligates to PAY
therefore a PRICE CERTAIN in money or its equivalent
5. Distinguish: resolution and rescission of contracts
1. General provisions
Art. 1380 Rescission Art. 1191 Resolution
SUBSIDIARY ACTION, involving partial PRINCIPAL ACTION, retaliatory in nature  Rules on Double Sale of Immovable property
resolution  Buyer who first registered In GF > First Possessor in GF> Presents the Oldest
Prejudice on the economic interest of Breach of Faith Title in GF
party
 Knowledge gained by 1st buyer of the second sale cannot defeat the 1st buyer’s
Payment of damages by defendant, Reparation of damages for the breach is
action cannot be maintained anymore purely secondary rights EXCEPT when the 2nd buyer registers in GOOD FAITH the second sale
Prejudiced 3rd party may also seek Only contracting parties may seek ahead of the first
remedy remedy  Execution sales of unregistered laws, the buyer merely steps into the shoes of
Grounds on EQUITY Grounds on NON-COMPLIANCE the judgment debtor. Thus, if JD already sold his property before it was levied
Right to seek remedy is not affected by May be denied if court finds there there upon, the buyer at the auction sale shall not acquire the property.
extension of time is sufficient reason to justify extension  Option Contract– contract whereby the PROSPECTIVE BUYER for a
4 years prescription 10 years prescription consideration DISTINCT FROM THE PRICE is given the right to purchase the
thing to be sold.
VII. Natural Obligations  There is a already perfected contract of sale if the offer is accepted before the
offer is withdrawn.
 A juridical tie is created by reason of EQUITY and NATURAL JUSTICE. There is a
moral but not a legal duty to perform or pay. 2. Parties
  Sales to those who are Relatively Incapacitated to Buy are VOID even if there’s
consent
EXCEPT sale to an agent with consent of the principal
3. Obligations of the vendor/seller
 Delivery of lesser quantity than what was contracted– buyer may reject delivery
 Retention knowing that S won’t perform in full -> must pay for CONTRACT
RATE
 Retention w/o knowing that S won’t perform in full -> pay only FAIR VALUE of
goods
 Delivery of Real Property: Sale Per Unit
- VR obliged to deliver all that may have been stated in the contract. If less is
delivered:
 Proportional Reduction of Price; OR
 Rescission of contract IF lack in area is MORE THAN 1/10th of what was stated
 Delivery of Real Property: Lump Sum Sale
- there shall be no increase/decrease of price, even if area is greater/less than
stated
-if there’s conflict between the actual area & estimated area in the contract, VR
shall deliver only when the excess or deficiency between the two is
REASONABLE.
4. Obligations of the vendee
 Inspection and Acceptance
Generally, Vendee is not bound to accept delivery of goods in installment.
 To Pay the Price
Mere act of trespass shall not authorize the suspension of the payment of the
price
 To Bear the Expenses for the Execution of Sale & Putting Goods in a Deliverable
State
5. Transfer of ownership
Perfection of the contract of sale constitutes only a RIGHT to the transfer or
acquisition of ownership. While DELIVERY is the METHOD of accomplishing the
same.
Execution of a public instrument gives rise only to a prima facie presumption of
delivery, it can be negated by failure of buyer to take actual possession of the
land sold.
6. Risk of loss
Risk of loss AFTER Perfection but BEFORE Delivery (conflicting views)
- Res perit creditori means buyer bears the risk of loss, obligation to pay shall
subsist
-Res perit domino owner bears the risk of loss
7. Document of title – any doc used as PROOF OF POSSESSION or CONTROL of the
goods
Bill of Lading – doc that serves as evidence of receipt of goods for shipment
issued by a common carried. Other docs of title: Quedan, Dock Warrant, etc.
Bearer Document is not always a bearer document, if it is indorsed to a specified
person, it then becomes an Order Document.
No Holder in Due Course for Docs of title, hence the title that is acquired by the
indorsee of the negotiable doc of title is SUBJECT to the defenses of prior parties.
Persons who negotiates DOES NOT WARRANT the SOLVENCY of the BAILEE
and does not make an assurance that the bailee or the previous endorses fulfill
their obligations.
8. Warranties (implied or express)
- a STATEMENT or REPRESENTATION made by the seller contemporaneously &
as part of the contract of sale that has reference to the CHARACTER, QUALITY or
TITLE of the goods.
 Implied Warranty Against Eviction
 The required eviction to enforce this warranty must by virtue of a FINAL
JUDGEMENT
 Waiver of Warranty in Case of Eviction (Conciente & Intentionada)
 o Conciente – VE waived it w/o knowledge of the risk of eviction, VR shall only
pay the v value of the object at the time of the eviction
 Implied Warranty Against Hidden Defects
 Knowledge of the vendor of the hidden defects is NOT ESSENTIAL for the
enforcement of the warranty; Prescriptive period is 6 months from delivery.
 Implied Warranty of Quality or Fitness in Sale of Goods
 Goods are of MECHANTABLE QUALITY & REASONABLY FIT for the purpose
for
which the goods are acquired.
9. Breach of contract
Remedies of Unpaid Seller of Goods Even AFTER Delivery:
- these special remedies have HIERARCHICAL APPLICATION. (1) Right of
Possessory Lien & (2) Right of Stoppage In Transitu must have been exercised
first before (3) Right to Resell & (4) Right to Rescind can be availed of.
 Right of Stoppage in transitu
o Goods are no longer in transit if after arrival, the carrier or other bailee
acknowledges to the buyer that he(bailee) continues to hold the goods on his
(buyer’s) behalf
 Right of Resale
o Notice to the 1st buyer is not necessary for the validity of the 2nd sale
o VR shall not be liable to the 1st buyer for any PROFIT made by such resale BUT
may recover from the 1st buyer DAMAGES for any loss occasioned by the
breach of contract
RECTO LAW (Sale of Movables on Installment)
Vendor may exercise any of the ALTERNATIVE remedies:
 Exact Fulfillment of the obligation/ Specific Performance
-Foreclosure of a Real Estate mortgage is one way of exacting fulfillment of the
obligation, therefore VR can recover the deficiency if any.
 Cancel the sale, if VE fails to pay at least 2 or more installments
 Foreclose the Chattel Mortgage
-foreclosure of the chattel shall BAR RECOVERY for any deficiency.
MACEDA LAW (Sale of Immovables on Installment)
- includes residential condominium apartments, it covers Contracts to Sell.
 Rule if Buyer (B) has paid at least 2 years of Installment
o Grace Period – 1 month for every 1 year of installment,
-- B can pay WITHOUT interest during this period.
o This right can be exercised only ONCE EVERY 5 YRS of the life of the
contract
o Twin Requirement for Cancellation of sale:
 Notarized Notice of Cancellation
 Refund of the Cash Surrender Value
- 50% of the total payments made + 5% for every year after the first 5
years
 Rule if Buyer (B) has paid less than 2 years of Installment
o Grace Period – B may pay within 60 days from date of installment became
due
o Seller may cancel after 30 days from receipt of the buyer of the only
requirement which is the Notarized Notice of Cancellation, no CSV to be paid
anymore.
10. Performance of contract (refer to obligations of the vendor and vendee)
11. Extinguishment
 Conventional Redemption (Sale Con Pacto De Retro)
-by express agreement, seller is given the right to repurchase the thing sold.
 Equitable Mortgage – a mortgage which although lacking in some formality, it
still reveals the intention of the parties to charge real property as security for a
debt
 Sale Con Pacto De Retro is be presumed to be Equitable Mortgage in certain
cases.
 Legal Redemption
- the right to be subrogated upon the same terms in the place of one who
acquires a thing by purchase. E.g. co-owner redeems share of other COs that are
sold to 3rd persons
 WRITTEN Notice by the vendor to the redemptioners is INDISPENSABLE
B. Trusts
 A FIDUCIARY relationship by virtue of which a person, herein TRUSTOR, reposes
to another, herein TRUSTEE, his confidence as regards a property for the benefit
of a person referred to as the BENEFICIARY
C. 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.
Persons dealing with an agent must ascertain not only the fact of agency but also
the NATURE & EXTENT of the agent’s authority
Special Power to Sell EXCLUDES the Power to Mortgage and vice versa
Power to Compromise DOES NOT AUTHORIZE Power of Submission to
Arbitration
Procuring Cause Rule
- agent is entitled to the stipulated compensation as long as the sale must be
concluded through the measures that the agent employed & the efforts that he
exerted. The agent is the procuring cause of the transaction.
Doctrine of Apparent Authority aka Holding Out Theory or Doctrine of Ostensible
Agency
- anybody who makes it appear that the agent is authorized is bound by the acts
of the agent. It is determined only by the acts of the principal not by the acts of
the agent.
D. Compromise
- a contract whereby the parties, by making RECIPROCAL CONCESSIONS, avoid
a litigation or to put an end to one already commenced.
E. Loan
1. Loan
- a party, delivers to another either a non-consumable so that the latter may use it for
a certain time and return it or a consumable thing like money so that the bailee may
consume it with the obligation to pay the same amount of the same kind & quality
 Contract of loan is UNILATERAL since the delivery by the lender perfects the
contract of loan, hence the obligation after the perfection is only for the bailee to
pay.
2. Commodatum (Bailor/Lender – Bailee/Borrower)
- the bailor delivers to another something not consumable so that the bailee may
use the same for a certain time. Use of the fruits not included unless expressly
provided.
 It is essentially GRATUITOUS, if compensation is paid it ceases to be a
commodatum.
 It is PERSONAL in nature, hence bailee can’t lend or lease the thing to a 3rd
person.
 Only members of the bailee’s household can borrow, gf/bf not included.
 Bailee CANNOT RETAIN the thing loaned if the bailor owes him something like
EXPENSES
 However bailee has a RIGHT OF RETENTION for DAMAGES because of a flaw or
defect in the thing loaned which the bailor was aware.
 Bailor may ask for the return of thing in the ff. cases:
 Urgent Need – temporary suspension of the contract of commodatum
 Acts of Ingratitude by the bailee
 Precarium – neither the DURATION or USE of thing has been stipulated in the
contract
-- Use of the thing is merely TOLERATED
3. Simple loan/ Mutuum (Creditor-Debtor)
-the creditor delivers to another, money or other consumable thing upon the
condition that an equal amount of the same kind and quality shall be paid.
 The bank can make use as its own the money deposited.
 Bank has the right to compensation, it can set off the deposits with the
indebtedness of the depositor that are due and demandable
4. Interests on loan
a. Conventional interest/ Monetary Interest
- paid for the principal at a certain rate fixed or stipulated by the parties
  If written agreement says interest will be paid, but rate is not stipulated. The
current legal interest of 6% per annum will be the controlling rate.
 Unilateral increase of interest is not allowed by law,it violates the mutuality of
contracts
 If borrower paid interest by mistake as when there’s no stipulation to pay interest,
then solution indebiti applies and there can be recovery of amount paid.
 Interest rate should not be UNCONSCIOUNABLE, UNREASONABLE and
CONFISCATORY.
b. Interest on interest (Compounding of Interest)
-imposed when interest due and unpaid is capitalized or added to the principal.
c. Compensatory, penalty or indemnity interest/ Legal Interest
- law directs to be charged in the absence of any agreement as to the rate between
the parties or when there are actual and compensatory damages imposed by court.
d. Finance charges
- is a cost imposed on a consumer for obtaining credit. Finance charge include
interest on debt balances and any extra fees imposed by the credit-issuing entity
 RA.3765 Truth In Lending Act
o This law applies to all persons who extend credit, who require as an incident to
extending credit, the payment of a finance charge.
o Finance charge includes interest, fees, service charges, discounts, and such
other charges incident to extending credit, the payment of a finance charge.
o There’s a requirement for DISCLOSURE prior to the consummation of the
transactions hence the finance charges should be included in the disclosure
form
 Under the Philippine Credit Card Industry Regulation Law
o This law governs all credit card issuers, acquirers and all credit card
transactions
o Finance charges here refers to the interest charged to the cardholder on all
credit card transactions in accordance with the terms & conditions specified in
the agreement
o In computing for the CREDIT CARD LIMIT, the finance charge is included
o Credit card issuers shall only charge interest or finance charges arising from the
NON-PAYMENT IN FULL or ON TIME of the outstanding balance based on the
unpaid amount of the outstanding balance as of statement cut-off date.
e. Usury
 Although usury is legally inexistent, courts will not hesitate to declare void
“EXCESSIVE, INIQUITIOUS, UNCONSCIOUNABLE, EXORBITANT interest”
F. Deposit
- its constituted from the moment a person receives a thing belonging to another,
with the obligation of SAFELY KEEPING it and return the same.
G. Lease - Lessor (landlord) -- Lessee(tenant)
 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.
 Lease of Work or Service – one of the parties binds himself to execute a piece of
work or render to the other some service for a price certain.
Lessee cannot ASSIGN the lease w/o the consent of the lessor unless there’s a
stipulation
Lesee can SUBLEASE the property, in whole or in part, if there is no express
prohibition
Implied New Lease (Tacita reconduccion)
o The right of the lessee to continue enjoying the de facto possession of the thing
lease within a period of time fixed by law.
o Lessee has continued enjoying the thing for 15 days with the acquiescence of the
lessor
o The implied extension/period would depend on what their payment arrangement
in their previous contract of lease, either annually, monthly, weekly or daily
o INL carries with it only the terms of the lease itself & not a right to repurchase
X. Quasi-contracts
A. Negotiorum Gestio
B. Solutio Indebiti
XI. Land Titles And Deeds A. Principles

A. Torrens System 1. Abuse of right; elements

1. Concept and background 2. Unjust enrichment

2. Certificate of title 3. Liability without fault

B. Agrarian Titles and Ancestral Lands and Domains 4. Acts contrary to law

1. Concept and registration of agrarian titles 5. Acts contrary to morals

2. Concept and registration of ancestral lands and domains B. Classification of Torts

C. Citizenship Requirement 1. According to manner of commission

1. Individuals 2. According to scope

2. Corporations C. The Tortfeasor

D. Original Registration 1. Direct tortfeasor

1. Who may apply a. Natural persons

2. Registration process and requirements b. Juridical persons

3. Remedies 2. Persons made responsible for others

4. Cadastral registration 3. Joint tortfeasors

E. Subsequent Registration D. Proximate Cause

1. Voluntary dealings 1. Concept

2. Involuntary dealings 2. Cause in fact

F. Non-Registrable Properties 3. Efficient intervening cause

G. Dealings With Unregistered Lands 4. Cause as distinguished from condition

XII. Torts 5. Last clear chance

E. Legal Injury 2. Products liablity; manufacturers or processors

1. Concept 3. Nuisance

2. Elements of right 4. Violation of constitutional rights; violation of civil liberties

3. Violation of right or legal injury 5. Violation of rights committed by public officers

4. Classes of injury 6. Provincies, cities and municipalities

F. Intentional Torts 7. Owner of motor vehicle

1. General 8. Proprietor of building or structure or thing

a. Concept 9. Head of family

b. Classes 10. Violations of data privacy

2. Interference with rights to persons and property I. Strict Liability

3. Interference with relations 1. Animals; possessor and user of an animal

G. Negligence 2. Nuisance

1. Concept 3. Products liability; Consumer Act

2. Good father of a family or reasonably prudent person XIII. Damages

3. Standard of care; emergency rule A. General Consideration

4. Unreasonable risk of harm 1. Classification

5. Evidence 2. Kinds of Damages

6. Presumption of negligence a. Actual and Compensatory

7. Defenses b. Moral

H. Special Liability in Particular Activities c. Nominal

1. In general; concepts d. Temperate

e. Liquidated

f. Exemplary

3. When damages may be recovered

B. Damages in Case of Death

C. Graduation of Damages

1. Duty of injured party

2. Rules

a. In crimes

b. In quasi-delicts

c. In contracts and quasi-contracts

d. Liquidated damages

e. Compromise