EXECUTIVE COUNCIL

REA MAY G. HERMOSURA

Chairperson

JANINE NICOLE C. ORCENA TRISHA ALEXIS R. MAINGAT JAYNIE P. PAJARILLAGA

Vice Chairperson for Academics Secretary Creative Director

SHASHLEY R. BERNARDEZ LANIE GRACE S. LIM IRISH ANA A. SALINAS

Vice Chairperson for Administration Treasurer Volunteer Core Head

CRISTOBAL N. RABINO GRACE PEREZ-SONIDO TIMOTHY JAMES D. PACSON

Operations Head Auditor Ways and Means Officer

CIVIL LAW I & II (AND PRACTICAL EXERCISES) COMMISSION

Patricia Marie C. Alonzo Bianca Chia R. Castro Loren Marciana B. Diwa

Commissioner Subject Head – Lease, Partnership, Agency Jona Myka Q. Dugayo
Johnver X A. Espineda
Charity Lasi Magtibay Louie Aeron R. Cordova Jane Eunice S. Gadin
Deputy Commissioner 1 Subject Head – Credit Transactions I and II Gee Marie G. Galang
Justinianne Joyce O. Guevarra
Kenneth A. Diano Precious Claire F. Formarejo Ibli Bernadette L. Inductivo
Deputy Commissioner 2 Subject Head – Torts and Damages Gee Maurene G. Manguera
Lorille J. Leones Ethel Joi M. Mendoza
Subject Head – Preliminary Title, and
Joshua L. Custodio Anna Hyacinth E. Nicerio
Persons and Family Relations Subject Head – Property John Robert M. Ortega
Elaine L. Pajaron
Timothy James D. Pacson Sherrie Mieko M. Obmerga Karen Joy T. Pamittan
Subject Head – Succession Subject Head – Land Titles and Deeds Maria Elena T. Pineda
Kevin M. Quioge
Albert John A. Ranoco Gille R. Abajar Roi Earl J. Red
Subject Head – Obligations and Contracts Lycelle Mae A. Balaoing Ma. Crizena M. Remo
Cesca Marcelli R. Balasbas April Anne G. Roma
Maureen N. Ramos Ma. Bernadette A. Castillo Rosalou L. Samaniego
Subject Head – Sales Adrian Paulo M. Catalan Globertina U. Sarangay
Members Romalyn E. Servañez
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Members
LEGAL ETHICS AND PRACTICAL EXERCISES COMMISSION

Donald Adrian M. Castillo Michael Renz Alambra

Commissioner Justine Marie R. Angulo
Alyssa M. Aquino
Nikka Mae B. Morales Mary Bernadette Joyce B. Betonio
Deputy Commissioner Araceli Marie M. De Guzman
Gladys C. de Vera
Ma. Dhelltria G. Garner John Angelo M. Gabrillo
Subject Head – Legal Ethics, Suspension,
Shiela May Noceda
Disbarment and Discipline of Lawyers (Rule
139; Rule 139-B) Jona B. Pranes
John Louie Pariñas
Janray M. Potente
Mikyla Janiene V. Cordero
Subject Head – Practical Exercises (Civil Joy Marie Sevilleno
Law and Criminal Law) Lourdes Tuozo
Gina B. Quintal
Members
 CENTER FOR LEGAL EDUCATION AND RESEARCH

ATTY. RODERICK M. VILLOSTAS

Director

ATTY. ANTONY J. PARREÑO

ATTY. LESTER NAZARENE V. OPLE
ATTY. RICKSON M. BUENVIAJE
Research Fellows

BRANDO F. DE TORRES
MARICAR S. ASUNCION
Research Staff

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 CIVIL LAW I & II (AND PRACTICAL EXERCISES)

PART I.

I. PRELIMINARY TITLE

A. Effect and application of laws

1. When does a law take effect?

Three possible scenarios:

(1) If the law does not provide for its own effectivity: it shall take effect “after fifteen (15) days
following the completion of its publication either in the Official Gazette, or in a newspaper of
general circulation in the Philippines.”
(2) If the law provides for its own effectivity: it shall take effect on such date, subject to the
requirement of complete publication.
(3) If the law provides that it shall become effective “immediately upon approval”: it shall take
effect immediately after its complete publication. (Art. 2, Civil Code; Tañada vs. Tuvera, supra.;
Rabuya, Civil Law Review Vol. 1, 2017)

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

a. If the law itself provides for its retroactivity (Art. 4, Civil Code)
b. Penal laws favorable to the accused who is not a habitual criminal, although at the time of the
publication of such laws, a final sentence has been pronounced and the convict is serving the
same. (Art. 22, Revised Penal Code)
c. If the law is procedural so long as it does not affect or change vested rights (Aguillon vs. Director
of Lands, G.R. No. L-5448, December 16, 1910)
d. If the law creates new substantive rights (Bona vs. Briones, G.R. No. L-10806, July 06, 1918)
e. If the law is curative in nature (Jurado, Civil Law Reviewer [2019])
f. If the law is interpretative of other laws (Jurado, supra.)

3. When may acts executed against the provisions of mandatory or prohibitory laws be
considered valid?

1. When the law itself authorizes its validity although generally, it would have been void;
2. When the law authorizes it, recognizes legal effect;
3. When the law only makes the act voidable and not void; or
4. When the law makes the act valid but punishes the violator (Rabuya, supra, p. 17-18).

4. Harvey, a minor, died after being hit by a reckless jeepney driver along the route of the
marathon he joined sponsored by the organization of Vikings. Harvey’s parents sued
Vikings for the accident. Vikings raised the defense that Harvey waived all his rights and
causes of actions arising from his participation in the marathon and that the doctrine of
assumption of risk was applicable. Is the defense of Vikings tenable?

No. Harvey could not have assumed the risk of death when he participated in the race because death
was neither a known nor normal risk incident to running a race. Neither was the waiver by Harvey,
then a minor, an effective form of express or implied consent in the context of the doctrine of
assumption of risk. The doctrine requires the concurrence of three elements, namely: (1) the plaintiff
must know that the risk is present; (2) he must further understand its nature; and (3) his choice to
incur it must be free and voluntary. (Abrogar vs. Cosmos Battling Company and Intergames Inc., G.R.
No. 164749, March 15, 2017)

1
5. In a tax refund case involving the Commissioner on Internal Revenue (CIR) and a mining
company, the CIR contends that Presidential Decree No. 972, a special law, which grants
a tax exemption to the latter was impliedly repealed by the enactment of R.A. No. 9337, a
general law, and therefore, the tax exemption granted by the former law should not be
applied to the current case. Is the contention of CIR correct?

No. It is a fundamental rule in statutory construction that a special law cannot be repealed or modified
by a subsequently enacted general law in the absence of any express provision in the latter law to that
effect. Hence, since there’s no express provision in RA 9337 to repeal PD No. 972, the former cannot
be impliedly repealed by latter. (CIR vs. Semirara Mining Corp., G.R. No. 202534, December 8, 2018)

6. What are the requisites of an implied repeal?

a. The law deals with the same subject matter; and

b. The later statute must be so irreconcilably inconsistent and repugnant with the existing law that
they cannot be made to reconcile and stand together. (Agujetas vs. Court of Appeals, G.R. No.
106560, August 23, 1996)

7. Briefly explain the following rules on conflict of laws:

(a) Generality of penal laws.

Penal laws and those of public security and safety shall be obligatory upon all who live or sojourn
in the Philippine territory, subject to the principles of public international law, treaty stipulations,
and laws of preferential application. (Art. 14, Civil Code)

(b) Nationality principle.

Laws relating to family rights and duties, or to the status, condition and legal capacity of persons
are binding upon citizens of the Philippines, even though living abroad. Prohibitive laws concerning
persons, their acts or property, and those which have for their object public order, public policy
and good customs shall not be rendered ineffective by laws or judgments promulgated, or by
determinations or conventions agreed upon in a foreign country. (Art. 15 and 17, Civil Code)

(c) Lex rei sitae.

Real property as well as personal property is subject to the law of the country where it is stipulated
situated. However, intestate and testamentary successions, both with respect to the order of
succession and to the amount of successional rights and to the intrinsic validity of testamentary
provisions, shall be regulated by the national law of the person whose succession is under
consideration, whatever may be the nature of the property and regardless of the country wherein
said property may be found. (Art. 16, Civil Code)

(d) Lex loci celebrationis.

The forms and solemnities of contracts, wills, and other public instruments shall be governed by
the laws of the country in which they are executed. (Art. 17, Civil Code)

(e) Doctrine of renvoi.

The court of the forum, in determining the question before it, must take into account the whole
law of the other jurisdiction, and also its rules as to conflict of laws, and then apply the law to the
actual question which the rules of the other jurisdiction prescribe, e.g., the English law directs its
judge to distribute the personal estate of an Englishman who has died domiciled in Belgium in
accordance with the law of his domicile, he must first inquire whether the law of Belgium would
distribute personal property upon death in accordance with the law of domicile, and if he finds that

2
 the Belgian law would make the distribution in accordance with the law of nationality — that is the
English law — he must accept this reference back to his own law. (In the Matter of the Testate
Estate of Christensen vs. Garcia, G.R. No. L-16749, January 31, 1963)

● Renvoi/ Remission - a procedure whereby a jural matter presented is referred by the

conflict of law rules of the forum to a foreign state, the conflict of laws rules of which in
turn refers the matter back to the law of the forum (remission) or a third state
(transmission)
● Transmission - it is the process of applying the law of a foreign state through the law of
a second foreign state. Not the same as renvoi.
● Double Renvoi - is that which occurs when the local court, in adopting the foreign court
theory, discovers that the foreign court accepts the renvoi.

RENVOI TRANSMISSION
Deals with two countries Deals with three or more countries
Deals with “referring back” Deals with “referring across” or
“transmitting”

(f) Doctrine of processual presumption.

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

(g) Forum Non Conveniens

This literally means “the forum is inconvenient”. Under this doctrine, a court, in conflicts of law
cases, au refuse impositions on its jurisdiction where it is not the most “convenient” or available
forum and the parties are not precluded from seeking remedies elsewhere.

(h) Scrivener’s error

This is the failure of the agreement to express the intention of the parties due to wrong
terminology, missing terminology, or clerical error. Because there is a failure to express the true
intent of the parties, the agreement is interpreted according to its plain or obvious meaning.

(i) State of the most significant relationship

Under this rule, to ascertain what state law to apply to a dispute, the court should determine which
state has the most substantial connection to the occurrence and the parties. In a case involving a
contract, the court should consider where the contract was made, was negotiated, was to be
performed, and the domicile, place of business, or place of incorporation of the parties.

(j) Foreign Element

A factual situation that cuts across territorial lines and is affected by the diverse laws of two or
more states (Saudi Arabian Airlines vs. Court of Appeals, G.R. No, 122191, October 8, 1998)

B. HUMAN RELATIONS

8. Briefly explain the following rules on human relations:

(a) Principle of abuse of rights.

A person must, in the exercise of legal right or duty, act in good faith (Art. 19, NCC). He would be
liable if he instead acted in bad faith, with intent to prejudice another. The elements of abuse of
are as follows:

(1) there is a legal right or duty;

3
 (2) which is exercised in bad faith;
(3) for the sole intent of prejudicing or injuring another. (California Clothing, Inc. vs. Quiñones,
G.R. No. 175822, October 23, 2013)

(b) Damnum absque injuria.

The damage resulting from the legitimate exercise of a person’s rights is a loss without injury for
which the law gives no remedy. (Amonoy vs. Gutierrez, G.R. No. 140420, February 15, 2001)

(c) Acts contra bonos mores.

Not because a person does not violate a law, he/she is not liable for damages to the person civilly
wronged. Any person who willfully causes loss or injury to another in manner that is contrary to
morals, good customs or public policy shall compensate the latter for the damage. (Art. 21, Civil
Code)

9. A person wants to file a complaint for damages against another person with whom it does
not have a contract with. What will be the basis of your cause of action: Arts. 19, 20 and
21, or Art. 2176 of the Civil Code?

An action for damages due to the negligence of another may be instituted on the basis of Art. 2176 of
the Civil Code which defines a quasi-delict. Art. 2176 applies when the negligent act causing damage
to another does not constitute “a breach of an existing law or a pre-existing contractual obligation.”
(St. Martin Polyclinic, Inc., vs. LWV Construction Corporation, G.R. No. 217426, December 4, 2017)

10. Distinguish accion in rem verso from solutio indebiti.

Accion in rem verso Solutio indebiti

Type of action Is an action for recovery of what Considered merely an auxiliary
has been paid without just cause action, available only when there
is no other remedy on contract,
quasi-contract, crime, and quasi-
delict.
Element of mistake It is not necessary that there Mistake is an essential element
should have been a mistake in
the payment
Basis of action Law Quasi-contract
(UP vs. Philab Industries, Inc., G.R. No. 152411, September 29, 2004; Rabuya, supra.)

11. When does the principle of unjust enrichment as enshrined in Article 22 of the Civil Code
apply?

Art. 22 of the New Civil Code provides that Every person who through an act of performance by another,
or any other means, acquires or comes into possession of something at the expense of the latter
without just or legal ground, shall return the same to him. For the principle to apply, the following
requisites must concur: (i) a person is unjustly benefited; and (ii) such benefit is derived at the expense
of or with damages to another.
(Yon Mitori International Industries vs. Union Bank of The Philippines, G.R. No. 225538, October 14,
2020, J. Caguioa)

4
 II. PERSONS AND FAMILY RELATIONS

A. Persons

1. Civil Personality

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

As a general rule, the fetus is considered born if it is alive at the time, it is completely delivered from
the mother’s womb. However, if the fetus had an intrauterine life of less than seven (7) months, it is
not deemed born if it dies within 24 hours after its complete delivery from the maternal womb. (Art.
41, Civil Code)

13. Distinguish juridical capacity from capacity to act

Basis Juridical Capacity Capacity to Act

(Art. 37, Civil Code) (Art. 37, Civil Code)
Definition Fitness to be subject of legal Power to do acts with legal
relations effect
Acquisition Inherent Through fulfillment of specific
legal activities
Extinguishment Only through death Through death and other causes
In relation to the other Can exist without capacity to Cannot exist without juridical
act capacity
Limitation None Minority, insanity or imbecility,
state of being deaf-mute,
prodigality, and civil interdiction
(restriction) (Art. 38, Civil Code)

Age, insanity, imbecility, state of

being deaf-mute, penalty,
prodigality, family relations,
alienage, absence, insolvency,
and trusteeship, among others.
(modification/limitation) (Art.
39, Civil Code)

14. What are the rules on the presumption of survivorship?

Art. 43, Civil Code Rule 131, Sec. 3(jj), Rules of Court
Applicability When the question of survivorship When there is no question of
involves persons “who are called upon succession or when the persons
to succeed each other” and when there involved are not called to succeed each
is question of succession other.
Requisites 1. There is no proof as to which of two 1. There is no proof as to which of two
persons died first; and persons died first; and
2. They are called to succeed each 2. They perish in the same calamity,
other. such as wreck, battle, or
conflagration.
Rules ● Whoever alleges the death of one ● If bother under 15, older is deemed
prior to the other, shall prove the the survivor;
same; ● If both above 60, younger is
deemed the survivor;

5
 ● In the absence of proof, they shall ● If one is under 15 and the other is
be presumed to have died at the above 60, the former is deemed
same time and there is no survivor;
transmission of rights from one to ● If bother over 15 but under 60 and
the other. sex is different, the male is deemed
the survivor; and
● If one is under 15 or over 60 and
the other between those ages, the
latter is deemed the survivor.

2. Use of Surnames

15. What are the rules on the use of surnames?

Generally, no person shall use different names and surnames ( Art. 380, NCC). The given name may be
freely selected by the parents for the child, but the surname to which the child is entitled is fixed by
law. (Rabuya, The Law on Persons and Family Relations, 2017 Ed., Pg. 1028) The exception to this
rule is when the employment of pen names or stage names is permitted, provided it is done in good
faith and there is no injury to third persons (Art. 379, NCC).

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

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

3. Entries in the Civil Registry and Clerical Error Law (R.A. no. 9048, as amended)

17. What are the entries included in the Civil Registry?

Acts, events, and judicial decrees concerning the civil status of persons shall be recorded in the civil
register. This includes the following: (a) Birth; (b) Marriages; (c) Deaths; (d) Legal Separations; (e)
Judgments of Annulment of marriage; (f) Judgment declaring marriages void from the beginning; (g)
Adoptions; (h) Legitimations; (i) Acknowledgments of natural children; (j) Naturalizations; (k) Election,
loss, or recovery of citizenship; (l) Civil interdiction; (m) Judicial determination of filiation; (n) Voluntary
emancipation of a minor; (o) Change of name. (Art. 407, Civil Code)

18. Distinguish clerical or typographical errors and substantial correction of an entry in the
Civil Registry.

Clerical or typographical errors Substantial correction

Refers to a mistake committed in the Substantial changes are changes which may affect
performance of clerical work in writing, the civil status from legitimate to illegitimate, sex,
copying, transcribing or typing and entry in the or citizenship of a person. (Republic v. Valencia,
civil register that is harmless and innocuous, G.R. No. L-32181 March 5, 1986)
such as misspelled name or misspelled place of
birth, mistake in the entry of the day and
month in the date of birth or the sex of the
person or the like, which is visible to the eyes
or obvious to the understanding, and can be
corrected or changed only by reference to

6
 other existing record or records (Sec. 2[3], RA
9048, as amended by RA 10172).
Clerical or Typographical Errors are subject to
administrative proceedings
A petition seeking a substantial correction of an
entry in a civil register must implead as parties to
the proceedings not only the local civil register, but
also all persons who have or claim any interest
which would be affected by the correction (Sec. 3,
Rule 108 of the Rules of Court).

4. Absence

a. Civil Code provisions

19. When can a person be declared absent?

Without administrator - Two years having elapsed without any news about the absentee or since the
receipt of the last news.

With administrator – Five years have elapsed without any news about the absentee or since the receipt
of the last news in case the absentee left a person in charge of the administration of his property. (Art.
384, Civil Code)

20. May a petition whose sole objective is to declare a person presumptively dead under Arts.
390 and 391 of the Civil Code be taken cognizance of by Philippine courts?

No. In our jurisdiction, a petition whose sole objective is to have a person declared presumptively dead
under the Civil Code is not regarded as a valid suit and no court has any authority to take cognizance
of the same. A rule creating a presumption of death is merely one of evidence that—while may be
invoked in any action or proceeding—cannot be the lone subject of an independent action or
proceeding. In such action, there would be no actual rights to be enforced, no wrong to be remedied
nor any status to be established. (Tadeo-Matias vs. Republic, G.R. No. 230751, April 25, 2018)

b. Presumptive death of absent spouse under the Family Code

21. What does "well-founded belief" refer to in an action to declare a spouse as presumptively
dead?

In order to comply with this requirement under Art. 41 of the Family Code, the present spouse must
prove that his/her belief was the result of diligent and reasonable efforts and inquiries to locate the
absent spouse and that based on these efforts and inquiries, he/she believes that under the
circumstances, the absent spouse is already dead. It requires exertion of active effort, and not a mere
passive one. In ordinary cases, an absence of four years is required, while in case of disappearance
where there is danger of death under the circumstances set forth in Article 391 of the Civil Code, an
absence of only two years shall be sufficient.
(Republic vs. Quinonez, G.R. No. 237412, January 6, 2020, J. Caguioa)

7
 B. Marriage

1. Requisites of marriage

22. What is the effect of absence, defect or irregularity in the essential and formal requisites
of marriage?

Absence, defect or Effect

irregularity
Absence
Of legal capacity, authority of GR: Marriage is void
the solemnizer or marriage
license XPN: Even if the solemnizing officer has no authority, the marriage is
valid if either or both parties believed in good faith that the solemnizing
officer had the legal authority to do so.
Of consent There is in fact no marriage
Of marriage ceremony There is in fact no marriage
Defect
In consent Marriage is voidable
Irregularity
In any of the formal requisites Does not affect the validity of the marriage but the party responsible
for the irregularity shall be civilly, criminally and administratively liable
(Rabuya, Civil Law Reviewer, Vol. 1, 2021, p.61-62)

23. May consul-generals, consuls, or vice-consuls solemnize a marriage abroad between a

Filipino and an Alien?

No, consul-generals, consults, or vice-consuls cannot solemnize mixed marriages. Only marriages
between Filipino citizens abroad may be solemnized by a consul-general, consul or vice-consul of the
Republic of the Philippines. With this, their authority is limited to marriages of both Filipinos residing
abroad. (Art. 10, Family Code)

2. Exemption from license requirement

24. What are the instances when marriage license may be dispensed with?

The requirement of marriage license may be dispensed with in the following instances:

(1) Marriage in articulo mortis (at the point of death) even if the ailing party subsequently survives;
(2) If the residence of either party is so located that there is no means of transportation to enable
such party to personally appear before the local civil registrar;
(3) Marriage among Muslims or among members of the ethnic cultural communities, provided they are
solemnized in accordance with their customs, rites or practices;
(4) Marriage of a man and a woman who have lived together and exclusively with each other as
husband and wife for a continuous and unbroken period of at least five years before the marriage.
(Arts. 27, 28, 33, and 34, Family Code, Ninal vs. Bayadog, G.R. No. 133778 dated March 14, 2000)
(5) Marriages celebrated abroad and in accordance with the laws of the place of celebration which do
not require a valid marriage license (Arts. 26 and 35, Family Code)

8
 3. Marriages solemnized abroad and foreign divorce

25. What are the exceptions to the rule that all marriages solemnized outside the Philippines,
in accordance with the laws in force in the country where they were solemnized, and valid
there as such, shall also be valid in the Philippines?

(1) Marriages contracted by any party below 18 years of age even with the consent of parents or
guardians (Art. 35 [1], Family Code);
(2) Bigamous or polygamous marriages not failing under Art. 41, which provides that where before the
celebration of a subsequent marriage, the prior spouse had been absent for four consecutive years
(or two years in case of disappearance where there is danger of death) and the spouse present
has a well-founded belief that the absent spouse was already dead (Art. 35 [4], Family Code);
(3) Marriages contracted through mistake of one contracting party as to the identity of the other (Art.
35 [5], Family Code);
(4) Subsequent marriages that are void under Art. 53, i.e., when there is non-compliance with the
requirement of recording in the appropriate civil registry and registries of property the judgment
of annulment or of absolute nullity of the marriage, the partition and distribution of the properties
of the spouses and the delivery of the children’s presumptive legitimes, and where either of the
former spouses marry again (Art. 35 [6], Family Code);
(5) A marriage contracted by any party who, at the time of the celebration, was psychologically
incapacitated to comply with the essential marital obligations of marriage, even if such incapacity
becomes manifest only after its solemnization (Art. 36, Family Code);
(6) Incestuous marriages (Art. 37, Family Code); or
(7) Void marriages by reasons of public policy. (Art. 38, Family Code)

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

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

4. Void and voidable marriages

27. What is the status of the following marriages?

(a) A marriage between a stepbrother and a stepsister.

If the marriage was celebrated during the effectivity of the Civil Code but prior to the effectivity of
the Family Code, said marriage is expressly prohibited, therefore, void. However, if the marriage
was celebrated from the time the Family Code took effect, or on or after 3 August 1988, said
marriage is no longer prohibited. (Art. 80, Civil Code)

(b) A marriage which took place five (5) months after the issuance of a marriage license.

Void for absence of an essential requisite. A marriage license shall be valid in any part of the
Philippines for a period of 120 days from the date of issue and shall be deemed automatically

9
 cancelled at the expiration of the said period if the contracting parties have not made use of it.
(Art. 20, Family Code)

(c) A marriage contracted by an 18-year-old illegitimate child who obtained the parental
consent only of her putative father.

Voidable for lack of parental consent. Since illegitimate children are under the exclusive parental
authority of their mother, it is the consent of the mother that is required. (Art. 176, Family Code)

28. What are the rules on sex determination vis-a-vis (a) sex reassignment and (b) persons
who are biologically intersex?

Sex reassignment. Considering that there is no law legally recognizing sex reassignment, the
determination of a person’s sex made at the time of his or her birth, if not attended by error, is
immutable. The sex of a person is determined at birth, visually done by the birth attendant (the
physician or midwife) by examining the genitals of the infant. (Silverio vs. Republic, G.R. No. 174689,
October 22, 2007)

Intersex. However, where the person is biologically or naturally intersex (or diagnosed with Congenital
Adrenal Hyperplasia), the determining factor in his gender classification would be what the individual,
having reached the age of majority, with good reason thinks of his/her sex. Sexual development in
cases of intersex persons makes the gender classification at birth inconclusive. It is at maturity that
the gender of such persons is fixed. (Republic vs. Cagandahan, G.R. No. 166676, September 12, 2008)

29. Aside from the husband or the wife in a void marriage, who else may file a petition for
declaration of nullity of marriage?

The aggrieved spouse in the prior marriage may file the petition of absolute nullity of a subsequent
marriage on the ground of bigamy. AM No. 02-11-10-SC does not preclude a spouse of a subsisting
marriage to question the validity of a subsequent marriage. On the contrary, the rule refers to the
husband or wife of the subsisting marriage because the parties to the subsequent bigamous marriage
are neither the husband or the wife under the law. (Juliano-Llave vs. Republic, G.R. No. 169766, March
30, 2011)

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

No. Psychological incapacity is neither a mental incapacity nor a personality disorder that must be
proven through expert opinion. There must be proof, however, of the durable or enduring aspects of
a person's personality, called "personality structure," which manifests itself through clear acts of
dysfunctionality that undermines the family. The spouse's personality structure must make it impossible
for him or her to understand and, more important, to comply with his or her essential marital
obligations.

Proof of these aspects of personality need not be given by an expert. Ordinary witnesses who have
been present in the life of the spouses before the latter contracted marriage may testify on behaviors
that they have consistently observed from the supposedly incapacitated spouse. From there, the judge
will decide if these behaviors are indicative of a true and serious incapacity to assume the essential
marital obligations. (Rosanna L. Tan-Andal v. Mario Victor M. Andal, G.R. No. 196359, May 11, 2021)

10
31. When is declaration of nullity of marriage on the ground of psychological incapacity
warranted?

To warrant the declaration of nullity of marriage, the psychological incapacity must be characterized
by:
(1) Gravity, i.e., it must be grave and serious such that the party would be incapable of carrying
out the ordinary duties required in a marriage;
(2) Juridical antecedence i.e., it must be rooted in the history of the party antedating the marriage,
although the overt manifestations may emerge only after the marriage; and
(3) Incurability i.e., it must be incurable, or even if it were otherwise, the cure would be beyond
the means of the party involved. (Santos vs. CA, G.R. No. 112019, January 4, 1995)

32. Discuss the difference between void marriages under Art. 40 and Art. 35 (4) of the Family
Code.

Distinction Art. 40 Art. 35 (4)

As to status of prior Prior marriage is itself void.. but Prior marriage is perfectly valid
marriage a party thereto did not secure a or at least voidable.
judicial declaration of nullity of
the prior marriage before
contracting a subsequent
marriage.
As to effect to the second The subsequent marriage is The subsequent marriage is
marriage also void because of failure to void for being bigamous
comply with Art. 40 of the pursuant to Article 35(4) of the
Family Code. Family Code.
As to property relations of ACP, CPG, or CSP Governed by Art. 148
the subsequent marriage

33. What is the effect of re-appearance of a presumptively dead spouse to the subsequent
marriage?

It will have no effect on the validity of the subsequent marriage, unless the re-appearing spouse files
an Affidavit of Reappearance. The second marriage shall automatically be terminated by recording the
affidavit of reappearance, unless there is a judgment annulling the previous marriage or declaring it
void ab initio. (Arts. 41 and 42, Family Code)

34. What are the actions for annulment of voidable marriages?

Persons Who May

Grounds Prescription Period Ratification
File
(Art. 45, FC) (Art. 47, FC) (Art. 45, FC)
(Art. 47, FC)
Parent/ legal
Any time before such party
guardian having
has reached the age of 21
Absence of charge of the minor Free cohabitation after
Parental Consent attaining the age of 21
Parties to the Within 5 years after attaining
marriage the age of 21

11
 Persons Who May
Grounds Prescription Period Ratification
File
(Art. 45, FC) (Art. 47, FC) (Art. 45, FC)
(Art. 47, FC)
Sane spouse who
has no knowledge of
the insanity Any time before the death of
either party Free cohabitation after
Unsound mind Relative guardian or the insane spouse
persons having legal regains sanity
charge of the insane
During lucid interval or after
Insane spouse
regaining sanity
Free cohabitation with
Within 5 years after the full knowledge of the
Fraud
discovery of fraud facts constituting the
fraud
Within 5 years from the time Free cohabitation after
Force, intimidation, the force, intimidation, or disappearance of force,
or undue influence Injured party undue influence disappeared intimidation / undue
or ceased influence, respectively

Impotency
Within 5 years after the No ratification since the
Serious and incurable
marriage defect is permanent
Sexually
Transmissible Disease

35. When can cohabitation for at least five (5) years be a substitute to the marriage license
requirement?

a. The man and woman must have been living as husband and wife for at least five (5) years before
the marriage;
b. The parties must have no legal impediment to marry each other;
c. The fact of absence of legal impediment between the parties must be present at the time of
marriage;
d. The parties must execute an affidavit stating that they have lived together for at least five (5) years
(and are without legal impediment to marry each other); and
e. The solemnizing officer must execute a sworn statement that he had ascertained the qualifications
of the parties and that he had found no legal impediment to their marriage (Borja-Manzano vs.
Sanchez, A.M. No. MTJ–00–1329, March 08, 2001).

36. Is filing of an affidavit of reappearance the exclusive remedy for a presumptively declared
deceased spouse?

No. The provision on reappearance in the Family Code as a remedy to effect the termination of the
subsequent marriage does not preclude the spouse who was declared presumptively dead from availing
other remedies existing in law. A subsequent marriage may also be terminated by filing an action in
court to prove the reappearance of the absentee and obtain a declaration of dissolution or termination
of the subsequent marriage. (Santos vs. Santos, G.R. No. 187061, October 08, 2014)

12
 C. Legal Separation

37. In an action for legal separation, is the grant of a preliminary injunction against the guilty
spouse in administering the conjugal properties in violation of the Family Code?

No. Article 124 of the Family Code expressly provides the spouses joint administration over the conjugal
properties. However, Article 61 states that after a petition for legal separation has been filed, the trial
court shall, in the absence of a written agreement between the couple, appoint either one of the
spouses or a third person to act as the administrator.
(Sabalones vs. CA, G.R. No. 106169, February 14, 1994)

38. What are the effects of the decree of legal separation?

a. The spouses shall be entitled to live separately from each other, but the marriage bonds shall not
be severed;
b. The absolute community or the conjugal partnership shall be dissolved and liquidated but the
offending spouse shall have no right to any share of the net profits earned by the absolute
community or the conjugal partnership, which shall be forfeited in accordance with the provisions
of Article 43 (2) of the Family Code;
c. The custody of the minor children shall be awarded to the innocent spouse, subject to the
provisions of Article 213 of the Family Code; and
d. The offending spouse shall be disqualified from inheriting from the innocent spouse by intestate
succession. Moreover, provisions in favor of the offending spouse made in the will of the innocent
spouse shall be revoked by operation of law. (Art. 63, Family Code)

D. Property relations between husband and wife

1. General Provisions

39. What is the law governing property relations of Filipino spouses?

GR: Philippine laws shall govern their property relations, regardless of place of celebration of marriage
and their residence. (Art. 80, Family Code)
XPN: For properties located outside of the Philippines, what shall govern is the law of the country
where the property is situated, whether the issue is the extrinsic or intrinsic validity of contracts
affecting said property. (Art. 80[2], Family Code in relation to Art. 16, New Civil Code)

2. Donations by reason of marriage

40. What are the requisites of Donations Propter Nuptias?

The following are the requisites of donations propter nuptias:

(a) Must be made before the celebration of the marriage;

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

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 3. Absolute Community of Property

41. What are the properties included and excluded in the absolute community of property?

Properties Acquired Prior Properties Acquired During

to the Marriage
GENERAL RULE
Included in the absolute community of property
(ACP).
EXCEPTIONS
a. Those excluded in the marriage settlement;
b. Those for personal and exclusive use; and
c. Those acquired by either spouse who has
legitimate descendants by a former
marriage, including fruits and income.
the Marriage
Included in the ACP.
a. Those acquired through gratuitous title,
including fruits and income unless expressly
provided by the grantor that they shall form
part of the ACP; and
b. Those for personal and exclusive use.
(Arts. 91-92, Family Code; Rabuya, supra.)

42. What is the property regime of a second marriage celebrated in 1990 without a marriage
settlement but one of the parties thereto had a prior void marriage which has not yet been
judicially declared void?

Absolute community of property. The said property regime applies by default in the absence of a
marriage settlement for marriages celebrated during the effectivity of the Family Code. Even though
the second marriage is void for failure to comply with the requirements of Article 40 of the Family
Code, the latter kind of void marriage is also governed by the same rules applicable to valid marriages
for purposes of determining its property regime. (Art. 50, in relation to Art. 43[2], Family Code; Diño
vs. Diño, supra.)

4. Conjugal Partnership of Gains

43. What are the properties included and excluded in the conjugal partnership of gains?

Properties Acquired Prior Properties Acquired During

to the Marriage the Marriage
GENERAL RULE
Not included in the conjugal partnership of gains Included in the CPG.
(CPG), but fruits and income accruing during the
marriage are included.
EXCEPTIONS
When included in the marriage settlement a. If acquired through gratuitous title, but the
subject to the following limitations: fruits and income of said properties are
a. May not exceed more than 1/5 of present included in the CPG.
property; and b. If acquired through onerous title and:
b. May not include properties acquired prior to i. Using exclusive money or funds; or
marriage if either of the future spouses has ii. Using conjugal funds but the acquisition
legitimate descendants in a former is by way of exercise of right of
marriage. redemption, subject to reimbursement.
(Arts. 109, and 116-117, Family Code; Rabuya,
supra.)

14
44. May a bank, being unable to foreclose a mortgage due to lack of marital consent from the
spouses, still recover the amount of a loan from the said spouses?

Yes. While the real estate mortgage was an encumbrance attached to a conjugal property without the
consent of the other spouse is void and legally inexistent, the law presumes that when the family
benefited from the loan, the conjugal partnership should be held liable. Although the bank cannot
foreclose the mortgage over the conjugal property in question, it can still recover the loan amount from
the conjugal partnership. (PNB vs. Reyes, Jr., supra.)

45. In a petition for dissolution of conjugal partnership, may a foreigner spouse seek
reimbursement from the Filipino spouse for half of the value of the properties, on the
ground that the funds used to purchase the parcels of land titled under the name of the
Filipino spouse and subject of the dispute are were his?

No, the foreign spouse cannot seek reimbursement on the ground of equity where it is clear that he
willingly and knowingly bought the property despite the prohibition against foreign ownership of
Philippine land enshrined under Sec. 7, Art. XII of the 1987 Philippine Constitution. (Beumer vs. Mores,
G.R. No. 195670, December 03, 2012)

5. Separation of property and administration of common property by one spouse during the
marriage

46. When may a complete separation of property govern the property relations of the spouses?

(a) By express declaration in the marriage settlement; (Arts. 134 and 74[1], FC)
(b) By judicial order; (Art. 134)
(c) By failure of the surviving spouse to liquidate the absolute community or conjugal partnership of
gains of a previous marriage which has been terminated by death within the one-year period required
by law prior to contracting another marriage. (Arts. 103 and 130, FC)

6. Regime of separation of property

47. Explain the property regime governing the following situations.

(a) A second marriage contracted by the surviving spouse during the effectivity of the
Family Code and without a marriage settlement after the prior marriage was
terminated by reason of death, but the surviving spouse failed to liquidate the conjugal
partnership of said prior marriage.

Complete separation of property. Under the Family Code, if the conjugal partnership or the absolute
community of the prior marriage was terminated by reason of death and the surviving spouse failed
to liquidate the property regime within one year from the death of the deceased spouse, the
subsequent marriage shall be mandatorily governed by complete separation. (Art. 130, Family
Code)

(b) When after the issuance of the decree of legal separation, the spouses reconciled and
obtained a decree of reconciliation from the court.

Complete separation of property. After the issuance of the decree of legal separation, the property
regime of the spouses shall be complete separation. While a decree of reconciliation sets aside the
decree of legal separation, the separation of property subsists, however, unless the spouses have
agreed to revive their former property regime. (Art. 66[2], Family Code; Sec. 23[d], Rule on Legal
Separation)

15
 (c) When after the issuance of the decree of reconciliation, the spouses executed an
agreement for the adoption of conjugal partnership of gains as their new property
regime and such agreement is approved by the court.

Complete separation of property. After the issuance of the decree of legal separation, the property
regime of the spouses shall be complete separation. Even when the spouses executed an
agreement for the adoption of conjugal partnership as their new property regime and the same is
approved by the court, the agreement is void because the law mandates that such property regime
can only commence at the precise moment of the celebration of the marriage. Any agreement to
the contrary, whether express or implied, is declared by law to be void. (Art. 107, in relation to Art.
88, Family Code)

7. Property regime of unions without marriage

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

Article 147 Article 148

APPLICABILITY
1. Capacitated to marry each other. With legal impediment to marry (e.g.,
2. Live exclusively as husband and wife without adulterous relationships, bigamous or
the benefit of marriage or under a void polygamous marriages, incestuous marriages,
marriage (due to absence of formal void marriages by reason of public policy under
requisites). Art. 38 of the Family Code).
3. Void marriage due to Art. 36 of the Family
Code (Diño v. Diño, G.R. No. 178044,
January 19, 2011)
SALARIES & WAGES
Owned in equal shares. Separately owned by the parties.
PROPERTY ACQUIRED EXCLUSIVELY BY EITHER PARTY
Belongs to such party provided there is proof Belongs to such party.
that he/she acquired it by exclusive funds.
PROPERTY ACQUIRED BY BOTH PARTIES
Governed by the rules on co-ownership when Owned by them in common in proportion to
the presumption of joint acquisition and equal their respective contributions.
Sharing applies.
PRESUMPTION (PRIMA FACIE)
Presumption of joint acquisition and equal No presumption of joint acquisition. When there
sharing as to property acquired while they live is evidence of joint acquisition but none as to
together. the extent of actual contribution, there is a
presumption of equal sharing.
FORFEITURE
When one of the parties is bad faith his share in 1. If one of the parties is validity married to
the co-ownership shall be fortified: another, his/her share in the co-ownership
1. In favor of their common children; shall accrue to the absolute community or
2. In favor of the innocent party, in default of conjugal partnership existing in such valid
or in case of waiver by any or all of the marriage.
common children or their descendants. 2. If the party who acted in bad faith is not
validly married to another or if both parties
are in bad faith, such share shall be fortified
in the manner provided in the last paragraph
of Art. 147 of the Family Code. (Arts. 147-
148, Family Code)

16
 E. Paternity and Filiation

1. Legitimate children

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

The action to impugn the legitimacy of the child shall be brought within one year from the knowledge
of the birth or its recording in the civil register, if the husband or, in a proper case, any of his heirs,
should reside in the city or municipality where the birth took place or was recorded.

If the husband or, in his default all of his heirs do not reside at the place of birth or where it was
recorded, the period shall be two years if they should reside in the Philippines. If the husband or all
heirs live abroad, the period shall be three years. (Art. 170, Family Code)

2. Proof of filiation

50. When may a child bring an action to claim filiation/legitimacy?

The action to claim legitimacy may be brought by the child during his or her lifetime and shall be
transmitted to the heirs should the child die during minority or in a state of insanity. In these cases,
the heirs shall have a period of five years within which to institute the action.

The action already commenced by the child shall survive notwithstanding the death of either or both
of the parties. (Art. 173, Family Code)

3. Illegitimate children

51. May an illegitimate child prove filiation through open and continuous possession of the
status as illegitimate child?

No. The Family Code provides that illegitimate children may establish their filiation the same way and
on the same evidence as legitimate children, but such action must be brought during the lifetime of
the alleged parent. (Ara vs. Pizzaro, G.R. No. 187273, February 15, 2017)

52. How may filiation of illegitimate children be established?

Yes. The filiation of illegitimate children, like legitimate children, is established by (1) the record of birth
appearing in the civil register or a final judgment; or (2) an admission of legitimate filiation in a public
document or a private handwritten instrument and signed by the parent concerned. (Aguilar vs. Siasat,
G.R. No. 200169, January 28, 2015)

53. May a birth certificate be registered by the biological father of an illegitimate child without
the knowledge and consent of the child’s biological mother?

No. Par. 5, Sec. 5 of Act No. 3753 (Civil Registry Law) states that in case of an illegitimate child, the
birth certificate shall be signed and sworn to jointly by the parents of the infant or only the mother if
the father refuses. Thus, it is mandatory that the mother of an illegitimate child signs the birth
certificate of her child in all cases, irrespective of whether the father recognizes the child as his or not.
(In the Matter of Petition for Cancellation of Certificates of Live Birth of Barcelote Tinitigan vs. Republic,
G.R. No. 222095, August 7, 2017)

17
 4. Legitimated children

54. What is legitimation?

Legitimation is the process provided under our law where the status of a child conceived and born out
of wedlock is improved, by operation of law, from illegitimacy to that of legitimacy by the mere
subsequent marriage of the parents. (Arts. 177-179, FC)

55. May legitimation be attacked collaterally in a petition for issuance of a protection order?

No. The issue of the legitimacy cannot be questioned collaterally in the petition for issuance of a
protection order. The putative parent, however, is not prevented from raising before the proper court
the issue of the legitimated child's status and filiation. (BBB vs. AAA, G.R. No. 193225, February 9,
2015)

F. Adoption

1. Domestic adoption (R.A. No. 8552)

a. Who may adopt

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

The following may adopt:

a) A Filipino citizen may adopt provided he meets the following qualifications:

(1) Of legal age;

(2) In possession of full civil capacity and legal rights;
(3) Of good moral character;
(4) Has not been convicted of any crime involving moral turpitude;
(5) Emotionally and psychologically capable of caring for children;
(6) At least 16 years older than the adoptee, in a position to support and care for his children in keeping
with the means of the family.

b) An alien desiring to adopt must possess the same qualifications for Filipino citizens and the following
additional requirements:

(1) His country has diplomatic relations with the Republic of the Philippines;
(2) He has been living in the Philippines for at least three continuous years prior to the filing of the
petition for adoption and maintains such residence until the adoption decree is entered;
(3) He has been certified by his diplomatic or consular office or any appropriate government agency
to have the legal capacity to adopt in his country;
(4) His government allows the adoptee to enter his country as his adopted child.

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

18
 b. Who may be adopted

57. Who may be adopted under the Domestic Adoption Act of 1998?

The following may be adopted:

a) Any person below eighteen (18) years of age who has been administratively or judicially declared
available for adoption;
b) The legitimate son/daughter of one spouse by the other spouse;
c) An illegitimate son/daughter by a qualified adopter to improve his/her status to that of legitimacy;
d) A person of legal age if, prior to the adoption, said person has been consistently considered and
treated by the adopter(s) as his/her own child since minority;
e) A child whose adoption has been previously rescinded; or
f) A child whose biological or adoptive parent(s) has died: Provided, that no proceedings shall be
initiated within six (6) months from the time of death of said parent(s). (Section 8, R.A. No. 8552)

58. May a husband adopt his illegitimate children out of wedlock despite having no consent
from his spouse and legitimate children?

No. The law on adoption requires that the adoption by the father of a child born out of wedlock obtain
not only the consent of his wife but also the consent of his legitimate children. The husband must first
obtain the consent of his wife if he seeks to adopt his own children born out of wedlock. (Art. 3, Sec.
7, RA No. 8552 (Castro vs. Gregorio, G.R. No. 188801, October 15, 2014)

59. What are the exceptions to the rule that husband and wife must jointly adopt?

Husband and wife are not required to adopt jointly:

(1) If one spouse seeks to adopt the legitimate son/daughter of the other;
(2) If one spouse seeks to adopt his/her own illegitimate son/daughter; provided, however, that the
other spouse has signified his/her consent thereto; or
(3) If the spouses are legally separated from each other. (Sec. 7, R.A. No. 8552)

c. Rights of an adopted child

60. What are the rights of an adopted child?

1. The right to use the surnames of the father and the mother;
2. The right to receive support from their parents, their ascendants, and in proper cases, their
brothers and sisters, in conformity with the provisions of the Family Code of the Philippines on
support; and
3. To be entitled to the legitimate and other successional rights granted to them by the Civil Code.
(Art. 174, FC)

d. Instances and effects of rescission

61. What are the instances when may adoption be rescinded?

1. Repeated physical and verbal maltreatment by the adopter(s) despite having undergone
counseling:
2. Attempt on the life of the adoptee;
3. Sexual assault or violence; or
4. Abandonment or failure to comply with parental obligations (Sec. 19, R.A. No. 8552).

19
62. What are the effects of rescission of adoption?

1. The parental authority of the adoptee’s biological parent (s), if known, or the legal custody of the
DSWD shall be restored if the adoptee is still a minor or incapacitated;
2. The reciprocal rights and obligations of the adopter(s) and the adoptee to each other shall be
extinguished;
3. The court shall order the civil registrar to cancel the amended certificate of birth of the adoptee
and restore his/her original birth certificate; and
4. Succession rights shall revert to its status prior to adoption, but only as of the date of judgment of
judicial rescission. Vested rights acquired prior to judicial rescission shall be respected (Sec. 20,
R.A. No. 8552).

2. Inter-country adoption (RA 8043)

a. When allowed

63. When is inter-country adoption allowed?

Inter-country adoption is allowed ONLY as a LAST RESORT. The Inter-Country Adoption Board is
mandated to ensure that all possibilities for adoption of the child under the FC have been exhausted
and that inter-country adoption is in the best interest of the child (Sec. 7, R.A. No. 8043).

b. Who may adopt

64. What are the requirements for an Alien to adopt a Filipino child pursuant to the Inter-
Adoption Act?

The following must be complied for an alien to adopt a Filipino Child pursuant to Inter-Country Adoption
Act of 1995:

a) is at least twenty-seven (27) years of age and at least sixteen (16) years older than the child to be
adopted, at the time of application unless the adopter is the parent by nature of the child to be
adopted or the spouse of such parent:
b) If married, his/her spouse must jointly file for the adoption;
c) Has the capacity to act and assume all rights and responsibilities of parental authority under his
national laws, and has undergone the appropriate counseling from an accredited counselor in
his/her country;
d) Has not been convicted of a crime involving moral turpitude; (e) is eligible to adopt under his/her
national law;
e) Is in a position to provide the proper care and support and to give the necessary moral values and
example to all his children, including the child to be adopted;
f) agrees to uphold the basic rights of the child as embodied under Philippine laws, the U.N.
Convention on the Rights of the Child, and to abide by the rules and regulations issued to implement
the provisions of this Act;
g) comes from a country with whom the Philippines has diplomatic relations and whose government
maintains a similarly authorized and accredited agency and that adoption is allowed under his/her
national laws; and
h) Possesses all the qualifications and none of the disqualifications provided herein and in other
applicable Philippine laws. (Section 9, R.A. No. 8043)

20
 c. Who may be adopted

65. Who may be adopted under the inter-country adoption?

Only a “legally-free child” (a child who is below 15 years of age and has been voluntarily or involuntarily
committed to the DSWD of the Philippines, in accordance with the Child and Youth Welfare Code) may
be adopted (Sec. 8, R.A. No. 8043).

No child shall be matched to a foreign adoptive family unless it is satisfactorily shown that the child
cannot be adopted locally (Sec. 11, R.A. No. 8043).

I. Support

66. When is the obligation to give support demandable?

The obligation to give support shall be demandable from the time the person who has a right to receive
the same needs it for maintenance, but it shall not be paid except from the date of judicial or
extrajudicial demand. (Abella vs. Cabañero, G.R. No. 206647, August 09, 2017)

67. Will an allegation of adultery preclude an action for support?

No. The allegation that the wife has committed adultery will not bar her from the right to receive
support pendente lite. While adultery is a defense in an action for support, the allegation must be
established by competent evidence. (Reyes vs. Ines-Luciano, G.R. No. L-48219, February 28, 1979)

J. Parental Authority

68. Distinguish substitute and special parental authority.

Substitute Parental Authority Special Parental Authority

As to who Surviving grandparent The school, its administrators and teachers, or
exercises In case several survive, the one the individual, entity or institution engaged in
designated by the court. (Art. 214, childcare (Art. 218, Family Code)
Family Code)
As to how In case of death, absence, or While under their supervision, instruction, or
exercised unsuitability of the parents (Art. custody (Art. 218, Family Code)
214, Family Code)
As to Subsidiary liability (Art. 219, Family Principally and solidarily liable for damages
liability Code) caused by the acts or omissions of the
unemancipated minor. (Art. 219, Family Code)

69. May the court grant “limited and temporary custody” to a parent who is deprived of the
care and custody of his/her minor child ahead of trial relating to custody of a child under
seven (7) years of age?

No. Sec. 15 of A.M. No. 03-04-04-SC (Rule on Custody of Minors and Writ of Habeas Corpus in Relation
to Custody of Minors) provides for temporary visitation rights, not temporary custody. It is only after
trial, when the court renders its judgment awarding the custody of the minor to the proper party, that
the court may likewise issue “any order that is just and reasonable permitting the parent who is
deprived of the care and custody of the minor to visit or have temporary custody.” By granting
temporary albeit limited custody ahead of trial, the trial court will overturn the tender-age presumption

21
 with nothing but bare allegations, to which the Court cannot give its imprimatur. (Masbate, vs. Relucio,
G.R. No. 235498, July 30, 2018)

L. Retroactivity of the Family Code

70. Does the Family Code have a retroactive effect?

Yes, the provisions of the Family Code have retroactive effect except if it will prejudice or impair vested
or acquired rights in accordance with the civil code or other laws (Art. 256, FC).

III. SUCCESSION

A. General provisions

71. What is succession?

Succession is a mode of acquisition by virtue of which the property, rights and obligations to the extent
of the value of the inheritance, of a person are transmitted through his death to another or others
either by his will or by operation of law. (Art. 774, NCC)

B. Testamentary Succession

1. Wills

72. What is a will?

A will is an act whereby a person is permitted with the formalities prescribed by law, to control to
a certain degree the disposition of his estate, to take effect after his death. (Art. 783, NCC)

73. What are the formalities of a will?

Common Formalities

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

22
 pages used, the fact that the testator
signed the will and every page
thereof, and that the instrumental
witnesses witnessed and signed the
will and all the pages in the presence
of the testator and of one another
(Art. 805, NCC)
6. Properly acknowledged before a
notary public by the testator and the
witnesses (Art. 806, NCC)

74. May a joint will executed in the US, where a joint will is allowed, by Two (2) Former
Filipino testators who became American citizens, be given legal effect in the Philippines?

Yes, under Art. 816 of the NCC, the will of an alien who is abroad produces effect in the Philippines if
made with the formalities prescribed by the law of the place in which he resides, or according to the
formalities observed in his country, or in conformity with those which the NCC prescribes. Here, Darna
and Ding were no longer Filipino citizens when they executed the joint will. Thus, said will may be
given effect in the Philippines.

2. Institution of heirs

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

No. The new rule provides that ”unless there is a pending special proceeding for the settlement of the
decedent's estate or for the determination of heirship, the compulsory or intestate heirs may
commence an ordinary civil action to declare the nullity of a deed or instrument, and for recovery of
property, or any other action in the enforcement of their ownership rights acquired by virtue of
succession, without the necessity of a prior and separate judicial declaration of their status as such.”
This rule is more consistent with the clear dictates of Article 777 of the Civil Code that the rights of
succession are immediately vested at the precise moment of the decedent’s death. From that point,
the heirs are legally deemed to have acquired ownership of their share in the inheritance and not at
the time of declaration of heirs, or partition, or distribution (Treyes v. Larlar, G.R. No. 232579,
September 08, 2020, J. Caguioa)

76. What is preterition?

Preterition is the omission in the testator's will of one, some, or all of the compulsory heirs in the direct
line, whether living at the time of the execution of the will or born after the death of the testator ( Art.
854, NCC), either because they are not mentioned therein, or, though mentioned, they are neither
instituted as heir nor expressly disinherited. Preterition happens when the following requisites
concur: (a) the heir omitted must be a compulsory heir in the direct line (Art. 854, par. 1, NCC); b.
(b) the omission must be complete and total in character in such a way that the omitted heir does not
and has not received anything at all from the testator by any title whatsoever (Morales vs. Olondriz,
G.R. No. 198994, February 3, 2016); and (c) the compulsory heir omitted should survive the testator.
(Art. 854, par. 2, NCC)

23
77. May an heir claim preterition if his name is omitted in a "Confirmation Affidavit of
Distribution of Real Property"?

No. Article 854 of the NCC partly provides that the preterition or omission of one, some, or all of the
compulsory heirs in the direct line, whether living at the time of the execution of the will or born after
the death of the testator, shall annul the institution of heir; but the devises and legacies shall be valid
insofar as they are not inofficious. There is no preterition in such instance because a) there is no will,
which is required for Art. 854 to apply; and b) if there are properties other than those stated in the
"Confirmation Affidavit" that may be the source of the said heir's share. (Mayuga vs. Atienza, G.R. No.
208197, January 10, 2018, J. Caguioa)

3. Substitution of heirs

78. Explain the concept of substitution of heirs.

Under Art. 857 of the NCC, substitution is the appointment of another heir so that he may enter into
the inheritance in default of the heir originally instituted. Further, under Art. 859 of the NCC, the
testator may designate one or more persons to substitute the heir or heirs instituted in case such heir
or heirs should die before him, or should not wish, or should be incapacitated to accept the inheritance.
(Rabadilla vs. CA, G.R. No. 113725, June 29, 2000)

4. Conditional testamentary dispositions and those with a term

79. What are the effects of suspensive conditions in a will?

In testamentary dispositions subject to a suspensive condition, successional rights are transmitted

only upon the happening of the condition, although the effects thereof retroact to the moment of the
testator’s death. (Arts. 1181 and 1187, in relation to Art. 884, NCC)
In other words, if it becomes certain that the condition cannot be fulfilled, the property must be
delivered either to a substitute (if one is provided), or to a co-heir with a right of accretion or the
legal heirs, as the case maybe. (Rabuya, Civil Law Reviewer, Vol. 1, 2021, p. 1003)

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

Legend: Surviving spouse (SS); Legitimate child or descendant/s (LC); Illegitimate child (ILC);
Legitimate parent/s or ascendant/s (LP); Illegitimate parent/s (ILP); Free portion (FP)

When compulsory heir/s of the same kind survive alone

1 LC ½ of the hereditary estate of the father and mother (Art. 888, NCC)
2 or ½ of the hereditary estate of the father and mother to be divided equally (Art. 888,
more LCs NCC)
LPA ½ of the hereditary estate of their children and descendants to be divided equally (Art.
889, NCC)
IP ½ of the hereditary estate
Parents of illegitimate children are compulsory heirs of the latter only in the case, when
such child leaves neither LC, nor a SS, nor IC (Art. 903, NCC)

24
SS ½ of hereditary estate
⅓ if marriage was solemnized in articulo mortis and the testator died within 3 months
from the time of the marriage
½ if the surviving spouse and the testator have been living as husband and wife for
more than 5 years (Art. 900, NCC)

IC ½ of hereditary estate divided equally among the IC

When Primary concurs with compulsory heirs

1LC; SS LC - ½ of the hereditary estate of the father and mother (Art. 888, NCC)
SS - ¼ of the hereditary estate to be taken from the FP (Art. 892, NCC)
In case of legal separation, the SS may inherit if it was the deceased who had given
cause for the same. (Art. 892, NCC)

2 or LC - ½ of the hereditary estate divided in equal portions (Art. 888, NCC);

more LC; SS - share of that equal to a child to be taken from the FP (Art. 892, NCC)
SS
LC; LC - ½, in equal portions (Art. 888, NCC);
IC IC - ½ share of each LC (Art. 176, FC)
1 LC; LC - ½ of the hereditary estate of the father and mother (Art. 888, NCC)
SS; SS - ¼ of the hereditary estate to be taken from the FP (Art. 892, NCC)
IC IC - ½ share of each LC (Art. 176, FC)
The legitime of the concurring CH are from the free portion.
The share of the SS has preference over that of the IC, whose share may suffer
reduction pro rata in case of insufficiency. (Art. 895, NCC)
2 or LC - ½ of the hereditary estate divided in equal portions (Art. 888, NCC);
more LC; IC - ½ share of each LC (Art. 176, FC)
IC; SS - share of that equal to a child to be taken from the FP (Arts. 892, 897, NCC)
SS
When secondary concurs with concurring compulsory heirs
LPA; LPA - ½ of the hereditary estate of their children and descendants to be divided equally
IC (Art. 890, NCC)
IC - ¼ of the hereditary estate to be taken from the FP (Art. 896, NCC)
LPA; LPA - ½ of the hereditary estate of their children and descendants to be divided equally
SS (Art. 889, NCC)
SS - ¼ of the hereditary estate (Art. 893, NCC)
LPA LPA - ½ of the hereditary estate of their children and descendants to be divided equally
SS (Art. 889, NCC)
IC SS ⅛ of the hereditary estate from the FP (Art. 899, NCC)
IC - ¼ of the estate from the FP (Art. 899, NCC)
IP; IP - ¼ of the hereditary estate
SS SS - ¼ of the hereditary estate (Art. 903, NCC)
Concurrence among concurring compulsory heirs

SS; SS - ⅓ of the hereditary estate

IC ⅓ of the hereditary estate (Art. 894, NCC)

25
 6. Disinheritance

81. Provide the rules on deprivation of legitime.

As a general rule, the testator cannot deprive his compulsory heirs of their legitime. (Art. 904, par. 1,
NCC). However, a compulsory heir may, in consequence of a valid disinheritance, be deprived of his
legitime. (Art. 915, NCC) Disinheritance can be effected only through a will wherein the legal cause
therefor shall be specified. (Art. 916, NCC)

82. What is the difference between preterition and disinheritance?

Distincti Preterition Disinheritance

on
As to Omission in the testator’s will of any of the Deprivation of a compulsory heir of his
nature of compulsory heirs in the direct line legitime through a testamentary
the act disposition
As to Presumed by law to be involuntary Always voluntary
voluntari
ness of
omission
As to There was merely oversight or mistake in It is for some legal cause
cause the omission
As to Results to the annulment of the institution Results to the annulment of the institution
effect of heirs in toto but devises and legacies of heirs but only in so far as it may
remain valid in so far as they are not in prejudice the person inherited.
officious
(Rabuya, Civil Law Reviewer, Vol. 1, 2021, p. 1027-1028)

83. What are the legal causes for valid disinheritance?

Causes common to all compulsory heirs

1. Conviction of final judgment of an attempt against life of the testator, his or her spouse,
descendant or ascendant.
2. Accusing the testator of a crime for which the law prescribes imprisonment for six years or
more, if the accusation has been found groundless or false.
3. When the heir causes the testator o make a will or to change one already made by fraud,
violence, intimidation or undue influence.
4. Unjustifiable refusal to give support.
Other grounds to disinherit children or descendants

1. When a child or descendant has been convicted of adultery or concubinage with

the spouse of the testator.
2. Maltreatment of the testator by word or deed, by the child or descendant.
3. When a child or descendant leads a dishonorable or disgraceful life.
4. Conviction of a crime which carries with it the penalty of civil interdiction.
Other grounds to disinherit parents or ascendants

1. When the parents have abandoned their children or induced their

daughters to live a corrupt or immoral life, or attempted against their
virtue.
2. When the parent or ascendant has been convicted of adultery or
concubinage with the spouse of the testator.
3. The loss of parental authority for causes specified in the Family Code

26
 4. An attempt by one of the parents against the life of the other, unless there
has been a reconciliation between them.
Other grounds to disinherit spouse
1. When the spouse has given cause for legal separation.
2. When the spouse has given grounds for the loss of parental authority.

C. Legal or Intestate Succession

1. General provisions; relationship and right of representation

84. May illegitimate children inherit ab intestato from the legitimate relatives of their father
or mother?

Under Art. 992 of the NCC, an illegitimate child has no right to inherit ab intestate from the legitimate
children and relatives of his father or mother; nor shall such children or relatives inherit in the same
manner from the illegitimate child. This is otherwise known as the “Iron Curtain Rule.” The right of
representation is not available to illegitimate descendants of legitimate children in the inheritance of a
legitimate grandparent. (Arado vs. Alcoran, G.R. No. 163362, July 8, 2015)

85. When does the right of representation take place?

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

86. Discuss the rules in intestate succession.

Surviving spouse (SS); Legitimate child or descendant/s (LC); Illegitimate child (ILC); Legitimate
parent/s or ascendant/s (LP); Legitimate ascendant/s (LA); Brothers and sisters (BS); and Nephews
and nieces (NN)

Intestate succession in the direct descending line

LC survive with ILC LC: double that of the ILC

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

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

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

Intestate succession in the direct ascending line

LA survive with ILC LA: ½

ILC: ½

27
 SS survives with LP SS: ½
LP: ½

LA survive with SS and ILC LA: ½

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

Illegitimate children

SS survives with ILC SS: ½

ILC: ½
(Art. 998, NCC)

Collateral blood relatives

BS survive with SS BS: ½

SS: ½
(Art. 1001, NCC)

2. Order of intestate succession

87. What is the Order of Intestate Succession?

The order is based on the presumed will of the decedent. Hence, in default of testamentary heirs, it
is presumed that the deceased would have provided in the following order: (Legitimate
relatives; Illegitimate relatives; Surviving spouse; and State)

Regular Order of intestate succession (if the decedent is a legitimate person)

a. Legitimate children or descendants (LCD) (Art. 979, NCC);
b. In default of LCD, Legitimate parents and ascendants (LPA) (Art. 986, NCC);
c. Illegitimate children and descendants (ILC) (Arts. 988, 990 and 992, NCC);
d. Surviving spouse (SS) (Art. 995, NCC);
e. Brothers and sisters (B/S), nephews, nieces (Ne/Ni) (Art. 995, NCC);
f. Other collateral relatives within 5th degree (Art. 1011, NCC);
g. The State (Art. 1011, NCC).

Irregular Order of intestate succession (if the decedent is an illegitimate person)

a. Legitimate children and descendants (Art. 979, NCC);
b. Illegitimate children and descendants (Arts. 988, 989, 990, NCC);
c. Illegitimate parents (Art. 993, NCC);
d. Surviving spouse (Art. 994, NCC);
e. Illegitimate brothers and sisters, nephews and nieces (Art. 994, NCC); and
f. The State (Art. 1011, NCC).

28
 D. Provisions Common to Testate and Intestate Succession

1. Right of accretion

88. When is there a Right of Accretion?

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

2. Capacity to succeed by will or by intestacy

89. Arturito, a citizen of Argentina and domiciled in the Philippines, died testate. He gave his
property located in Australia to his illegitimate son, Bogart. During probate, his legitimate
son, Coco, also a citizen of Argentina opposed the probate, contending that the law of
Argentina prohibits an illegitimate child to succeed. Decide.

Bogart will not succeed because the national law of the decedent prohibits an illegitimate child from
succeeding. Intestate and testamentary successions, both with respect to the order of succession, the
amount of successional rights, and intrinsic validity of testamentary provisions, shall be regulated by
the national law of the decedent, regardless of whatever the nature of the property and wherever the
property may be found. (Art. 16(2), NCC)

3. Acceptance and repudiation of inheritance

90. How may the inheritance be repudiated?

To be effective, the renunciation of an inheritance must either be: (a) by way of a notarial document;
(b) by way of an authentic document; or (c) by way of a petition presented to the court having
jurisdiction over the testamentary proceedings. (Art. 1051, NCC)

4. Partition and distribution of the estate

91. How may a title comprising two or more pieces of land be distributed?

When the title comprises two or more pieces of land which have been assigned to two or more co-
heirs, or when it covers one piece of land which has been divided between two or more co-heirs, the
title shall be delivered to the one having the largest interest, and authentic copies of the title shall be
furnished to the other co-heirs at the expense of the estate. If the interest of each co-heir should be
the same, the oldest shall have the title. (Art. 1090, NCC)

IV. OBLIGATIONS AND CONTRACTS

A. Obligations

92. What is an obligation?

An Obligation is a juridical necessity to give, to do or not to do. (Art.1156, NCC)

29
93. What are the essential elements of an obligation?

1. Active Subject (Obligee or creditor) - the person who is entitled to demand the fulfillment of
the obligation.
2. Passive Subject (obligor/debtor) - the person who is bound to the fulfillment of the obligation.
3. Juridical/legal tie (vinculum juris) - which binds or connects the parties to the obligation, and
which may arise from either bilateral or unilateral acts of persons.
4. Prestation or service (object) - conduct required to be observed by the debtor/obligor. (to give,
to do, or not to do). For it to be valid, it must be:
a. Licit;
b. Real or possible
c. Determinate or determinable
d. Must be within the commerce of men (Ang Yu Asuncion vs. CA, G.R. No. 109125, December
2, 1994)

1. General provisions

94. What are the sources of obligations?

A. Law - Obligations derived from law are not presumed. (Art. 1158, NCC)
B. Contracts - Obligations arising from contracts have the force of law between the contracting
parties and should be complied with in good faith. (Art. 1159, NCC)
C. Quasi-contracts - A juridical relation arising from lawful, voluntary, and unilateral act based on
the principle that no one shall be unjustly enriched or benefited at the expense of another (Art.
2142, NCC)
D. Delict -

GR: Every person criminally liable for a felony is also civilly liable (Art. 100, RPC)
XPN: Crimes of treason, rebellion, illegal possession of firearm and gambling.
E. Quasi-delict - act or omission causes damage to another, there being fault or negligence, with
no pre-existing contractual relations between the parties, is obliged to pay for the damage done
(Art. 2176, NCC)

2. Nature and Effect

95. What are the types of real obligation?

a. Determinate/specific - particularly designated or physically segregated from all others of the

same class
b. Indeterminate/Generic - is designated merely by its class or genus
c. Delimited generic - confined to a particular class.

96. What are the duties of a debtor in an obligation to give?

a. To give a determinate thing (Arts. 1163, 1164 & 1166, NCC)

b. To give a generic thing (Arts. 1246 and 1170, NCC)

97. What are the rights of a creditor in an obligation to do or not to do?

1. To do (Positive Personal)
i. The obligee is entitled to have the thing done in a proper manner, by himself or by a third person,
at the expense of the obligor;
ii. To demand what has been poorly done be undone;
iii. To recover damages because of breach of the obligation. (Art. 1167, NCC)

30
 2. Not to do (Negative Personal)
i. To have the thing undone at the expense of the obligor; and/or
ii. To ask for damages.

98. What are the sources of breach of obligations?

1. Voluntary - Debtor is liable for damage if he is guilty of those who in the performance of their
obligations are guilty of the following: (a) Fraud (dolo) - the deliberate and intentional evasion
of the normal fulfillment of obligations; (b) Negligence (culpa)- fault or negligence of the debtor
as an incident in the fulfillment of an existing obligation; (c) Default (mora) - Delay in the
fulfillment of the obligation; (d) And those who in any manner contravene the tenor thereof. Covers
any illicit act which impairs the strict and faithful fulfillment of the obligation. (Art. 1170, NCC)

2. Involuntary - Debtor is not liable for damages if he is unable to perform the obligation due to a
fortuitous event.

99. What are the kinds of default?

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

ii. Mora Accipiendi - delay of the obligee/creditor to accept the delivery of the thing which is the
object of the obligation
iii. Compensatio morae - delay of the parties or obligors in reciprocal obligations. (Paras, Civil Code
of the Philippines Annotated, 2016, p.124-125).

100. What are the effects of breach of obligation?

1. If a person obliged to do something fails to do it, the same shall be executed at his cost. This
same rule shall be observed if he does it in contravention of the tenor of the obligation.
Furthermore, it may be decreed that what has been poorly done be undone. (Art. 1167, NCC)
2. When the obligation consists in not doing, and the obligor does what has been forbidden him,
it shall also be undone at his expense. (Art. 1168, NCC)

3. Kinds

101. What are the classifications of the obligation as to the existence of a burden or
condition?

Pure Obligation Conditional Obligation Obligation with a term

It is an obligation whose
performance does not
depend upon a future or
uncertain event, or upon a
past event unknown to the
parties. Pure obligations
are demandable at once
(Art. 1179 [1], NCC).
It refers to one where the
acquisition of rights, as well as
the extinguishment or loss of
those already acquired, shall
depend upon the happening of
the event which constitutes the
condition (Art. 1181, NCC).
That kind of obligation which is
subject to the happening of the
event which will surely happen,
although the date may not be
known as of the moment. (Art.
1184, NCC)

31
102. What are the rights of the parties before the fulfillment of the condition?

Creditor Debtor
May bring the appropriate actions for the May recover what, during the same time, he has
preservation of his right (Art. 1188, NCC) paid by mistake in case of a suspensive condition.
such as: (Art. 1188, NCC)
a) Action for prohibition/restraining the
alienation of the thing pending the
happening of the suspensive
condition;
b) Petition for the annotation of the
creditor’s right with the proper
registry;
c) Action to demand security if the
debtor has become insolvent;
d) Action to set aside alienations made
by the debtor in fraud of creditors;
or
e) Action against adverse possessors
to interrupt the running of the
prescriptive period.

4. Extinguishment

103. What is Novation?

Novation is the substitution or change of an obligation by another, resulting in its extinguishment

or modification, either by changing its object or principal conditions or by substituting another in
place of the debtor, or by subrogating a third person in the rights of the creditor (8 Manresa, 5th
Ed. Bk. 1, p. 751)

104. Explain the requisites for dation in payment to extinguish an obligation.

(1) There must be the performance of the prestation in lieu of payment (animo solvendi) which
may consist in the delivery of a corporeal thing or a real right or a credit against the third person;
(2) There must be some difference between the prestation due and that which is given in
substitution (aliud pro alio); (3) There must be an agreement between the creditor and debtor that
the obligation is immediately extinguished by reason of the performance of a prestation different
from that due. (Lo vs. KJS ECO-FORMWORK System Phil., Inc., G.R. No. 149420, October 8, 2003).

105. Distinguish Dation in Payment and Payment in Cession

Dation in Payment Payment in Cessions

As to number of creditors

Maybe one creditor Plurality of creditors

As to object of the contract

The thing delivered is considered as equivalent Universality or property of debtor is what is

of performance ceded

32
 As to the extent of extinguishment

Payment extinguishes obligation to the extent Merely releases debtor for net proceeds of
of the value of the thing delivered as agreed things ceded or assigned, unless there is
upon, proved or implied from the conduct of contrary intention.
the creditor

As to ownership

Ownership is transferred to creditor upon Ownership is not transferred

deliver

As to presumption of insolvency

Does not presuppose insolvency Presupposes insolvency

(Jurado, Obligations and Contracts, 2010, p.275-276).

106. Define condonation.

An act of liberality by virtue of which the obligee, without receiving any price or equivalent,
renounces the enforcement of the obligation, as a result of which it is extinguished in its entirety
or in that part or aspect of the same to which the remission refers. It is the gratuitous abandonment
by the creditor of his right; a form of donation (Jurado, Ibid., p. 298)

107. X is indebted to Y in the amount of P100,000 secured by a real estate mortgage. Y

renounced his right over the mortgage. Can he still demand the payment of the
obligation? Why?

Yes, because the renunciation of the accessory does not extinguish the principal obligation. The
NCC provides that the renunciation of the principal debt shall extinguish the accessory obligations;
but the waiver of the latter shall leave the former in force. Here, what was renounced was the
accessory. Hence, the principal remains. (Art. 1296, NCC)

B. Contracts

1. General provisions

108. What are the requisites for mistake of fact to result in vitiation consent?

1. The error must be substantial regarding:

a. The object of the contract (error in re):
i. When the thing constitutes the object of the contract is confused with another thing
(Mistake as to Identity of the thing – error in corpore)
ii. Mistake as to the substance of the thing (error in substantia)
iii. Mistake regarding the quantity of the thing (error in quantitate); if mistake refers only to
accidental or secondary qualities, the contract is not rendered voidable (error in qualitate)
b. The conditions which principally moved or induced one of the parties
c. Identity or qualifications (error in personae), but only if such was the principal cause of the
contract.
d. The error must be excusable (not caused by negligence).
2. The error must be a mistake of fact, and not of law. (Jurado, Comments and Jurisprudence on
Obligations and Contracts, 2010 ed., pp. 430-432)

33
 3. A simple mistake of account, however, shall only give rise to its correction. (Art. 1331, NCC)
4. An error so patent and obvious that nobody could have made it, or one which could have been
avoided by ordinary prudence, cannot be invoked by the one who made it in order to annul his
contract. (Alcasid vs. CA, G.R. No. 104751, October 7, 1994)

109. What is the effect of fraud by third persons on the validity of a contract?

Misrepresentation by a third person does not vitiate consent, unless such misrepresentation has
created substantial mistake and the same is mutual. (Art. 1342, NCC) Misrepresentation
made in good faith is not fraudulent but may constitute error (Art. 1343, NCC)

2. Essential requisites

110. What are the essential requisites of a contract?

1. Consent of the contracting parties;

2. Object certain which is the subject matter of the contract;
3. Cause of the obligation which is established (Rabuya, Pre-bar Reviewer Civil Law, 2021, p. 400)

3. Reformation of instruments

111. What are the requisites of reformation?

1. There must have been a meeting of the minds of the parties to the contract;
2. The instrument does not express the true intention of the parties;
3. Failure of the instrument to express the true intention of the parties is due to mistake, fraud,
inequitable conduct, or accident. (Rabuya, Ibid, p. 417)

112. What are the requisites of reformation if there is a mistake?

1. the mistake should be of fact;

2. the same should be proved by clear and convincing evidence; and
3. The mistake should be common to both parties to the instrument. (Rabuya, Ibid.)

113. What are the instances where an instrument may not be reformed?

1. If mistake, fraud, inequitable conduct, or accident has prevented a meeting of the minds of
the parties— remedy should be annulment of the contract and not reformation;
2. In simple donations inter vivos wherein no condition is imposed;
3. In wills;
4. When the real agreement is void;
5. When one of the parties has brought an action to enforce the instrument, he cannot
subsequently ask for its reformation;
6. When the contract is unenforceable because of failure to comply with the Statute of Frauds.
(Rabuya, Ibid, p. 417-418)

4. Interpretation of contracts

114. What are some important rules of interpretation?

1. When the terms of the agreement are so clear and explicit that they do not justify an attempt
to read into it any alleged intention of the parties, the terms are to be understood literally just
as they appear on the face of the contract.

34
 2. Ejusdem generis- However general the terms of a contract may be, they shall not be
understood to comprehend things that are distinct and cases that are different from those
upon which the parties intended to agree;
3. Contra Pro-ferentem (construe against the drafting party)- the interpretation of obscure words
or stipulations in a contract shall not favor the party who caused the obscurity (in contract of
adhesion);
4. Principle of Effectiveness-when there are two interpretations, one would make the contract
meaningless and one which would give effect to the whole contract, the latter should prevail;
5. Complementary-contracts-construed-to- gether doctrine - an accessory contract must be read
in its entirety and together with the principal agreement.
6. Where the instrument is susceptible to two (2) interpretations, 1 which will make it invalid and
illegal, and another which will make it valid and legal, the latter interpretation should be
adopted.
7. In the construction of an instrument where there are several provisions or particulars, such a
construction is, if possible, to be adopted as will give effect to all.
8. An instrument may be construed according to usage in order to determine its true character.
(Rabuya, Ibid, p. 418)

5. Rescissible contracts

115. What are rescissible contracts?

Rescissible contracts are contracts which are considered valid, binding, and effective until it is
rescinded and contains all the requisites of a valid contract and are considered legally binding, but
by reason of injury or damage (lesion) to either of the contracting parties or to third persons, such
as creditors, it is susceptible to rescission at the instance of the party who may be prejudiced
thereby. (Art. 1380, NCC)

6. Voidable contracts

116. What is a voidable contract?

It is one in which the essential requisites for validity under Article 1318 are present, “but may be
annulled because of want of capacity or the vitiated consent of one of the parties; however, before
such annulment, the contract is existent, valid, and binding, hence, considered effective and
obligatory between parties, but it may be rendered perfectly valid by ratification, which can be
express or implied. (Francisco vs. Herrera, G.R. No. 139982, November 21, 2002)

117. What contracts are voidable or annullable even though there may have been no
damage to the contracting parties?

1. Those where one of the parties is incapable of giving consent to a contract;

2. Those where the consent is vitiated by mistake, violence, intimidation, undue influence or
fraud. (Art. 1390, NCC)

7. Unenforceable contracts

118. What are unenforceable contracts?

These are contracts which cannot be enforced by a proper action in court, unless they are ratified,
because either they are entered into without or in excess of authority or they do not comply with
the Statute of Frauds or both the contracting parties do not possess the required legal capacity.
Mercado vs. Allied Banking Corporation, G.R. No. 171460, July 24, 2007)

35
 The following contracts are unenforceable unless ratified:
1. Those entered into in the name of another person by 1 who has been given no authority or
legal representation, or who has acted beyond his powers;
2. Those that do not comply with the Statute of Frauds;
3. Those where both parties are incapable of giving consent to a contract. (Art. 1403, NCC)

119. What are the two principles in the statute of frauds?

1. Parol evidence is not admissible. However, there are 2 ways of bringing it out:
a. Failure to object by the opposing lawyer when parol evidence is used;
b. Acceptance of benefits (Art. 1405, NCC)
2. The Statute of Frauds applies only to executory contracts and not to those which have been
executed in whole or in part.
8. Void or inexistent contracts

120. What are void or inexistent contracts?

Void contracts are absolute nullity and produce no effect, as if it had never been executed or
entered into. (Francisco vs. Herrera, Ibid).

121. What are the characteristics of void and inexistent contracts?

1. The contract produces no effect whatsoever either against or in favor of anyone (Heirs of
Policarpio Ureta vs. Heirs of Liberato Ureta, G.R. 165748, September 14, 2011) ;
2. It cannot be confirmed, ratified or cured (Id.);
3. If it has been performed, the restoration of what has been given is in order, except if pari
delicto will apply;
4. The right to set the contract’s nullity cannot be waived;
5. The action for nullity is imprescriptible (Art. 1410, NCC);
6. Any person can invoke the contract’s nullity if its juridical effects are felt as to him.

122. What are the kinds of void or inexistent contracts?

The following contracts are inexistent and void from the beginning:
1. Those whose cause, object or purpose is contrary to law, morals. Good customs, public order
or public policy;
2. Those which are absolutely simulated or fictitious;
3. Those whose cause or object did not exist at the time of the transaction;
4. Those whose object is outside the commerce of men;
5. Those which contemplate an impossible service-no object;
6. Those where the intention of the parties relative to the principal object of the contract cannot
be ascertained;
7. Those expressly prohibited or declared void by law. (Art. 1409, NCC)

B. Natural Obligations

123. Distinguish between civil and natural obligations.

There are two essential distinctions between natural and civil obligations. They are:
1. Natural obligations are based on equity and natural law, whereas civil obligations are based on
positive law;
2. Natural obligations are not enforceable by court action, whereas civil obligations are
enforceable by court action. (Rabuya, Prebar Reviewer, 2021, p. 341)

36
 C. Estoppel

124. Discuss the three (3) types of estoppel.

1. Estoppel in pais - a person is considered in estoppel if by his conduct, representations,

admissions or silence when he ought to speak out, whether intentionally or through culpable
negligence, "causes another to believe certain facts to exist and such other rightfully relies and
acts on such belief, as a consequence of which he would be prejudiced if the former is
permitted to deny the existence of such facts."
2. Estoppel by deed - a party to a deed and his privies are precluded from denying any material
fact stated in the deed as against the other party and his privies.
3. Estoppel by laches - a kind of equitable estoppel, is when a person who has failed or neglected
to assert a right for an unreasonable and unexplained length of time is presumed to have
abandoned or otherwise declined to assert such right and cannot later on seek to enforce the
same, to the prejudice of the other party, who has no notice or knowledge that the former
would assert such rights and whose condition has so changed that the latter cannot, without
injury or prejudice, be restored to his. (Jose Go et al., vs. BSP, G.R. No. 202262, July 8, 2015).

125. Distinguish prescription from laches.

Prescription Laches

As to its Relation to Delay

Concerned with the fact of delay Concerned with the effect of delay

As to Nature

Question or matter of time Question of inequity of permitting the claim to

be enforced

As to Basis

Statutory Not statutory

As to Application

Applies in law Applies in equity

As to Availability as a Defense

Cannot be availed of unless it is specifically Being a defense in equity, it need not be

pleaded as an affirmative allegation specifically pleaded.

As to Basis in Respect of Fixed Time

Based on a fixed time Not based on a fixed time

37
 D. Trusts

126. How is a purchase money resulting trust created?

To give rise to a purchase money resulting trust, it is essential that there be:
1. An actual payment of money, property or services or an equivalent, consisting of valuable
consideration; and
2. The consideration must be furnished by the alleged beneficiary of a resulting trust (Morales,
et al., vs. CA, G.R. No. 117228, June 19, 1997).

127. A parcel of land used to be the conjugal property of Gregorio Yap and Rosario Diez. The
former died, leaving as heirs his wife and children. To facilitate the approval of a loan, she
executed an extrajudicial settlement of the property signed by the heirs except Gregorio
Yap, Jr., then a minor. The title was cancelled and Rosario exercised the rights of
ownership over the property. The heirs filed an action for partition alleging that the
extrajudicial settlement was simulated and void, but the RTC dismissed the action which
was affirmed by the CA, holding that the same was valid. In fact, both courts ruled that
Gregorio Yap, Jr. was barred by laches. Is the ruling correct?

Yes. The extrajudicial settlement is valid, but Gregorio Yap, Jr. was not barred by laches since he was
a minor at the time the extrajudicial settlement was executed. The registration of the land under
Rosario merely created an implied trust in her favor. Article 1451 of the NCC provides that when land
passes by succession to any person and he causes the legal title to be put in the name of another, a
trust is established by implication of law for the benefit of the true owner. In this case, the records
disclose that the intention of the parties to the extrajudicial settlement was to establish a trust in favor
of petitioner Yap, Jr. to the extent of his share. Rosario Diez testified that she did not claim the entire
property, while Atty. de la Serna added that the portion only involved the shares of the three (3)
participants. Although the registration of the land in private respondent Diez’s name operated as a
constructive notice of her claim of ownership, it cannot be taken as an act of repudiation adverse to
petitioner Yap, Jr.’s claim, whose share in the property was precisely not included by the parties in the
partition.

E. Quasi Contracts

128. What are the kinds of quasi-contract?

1. Negotiorum Gestio - juridical relation which arises whenever a person voluntarily takes charge
of the agency management of the business or property of another without any power or
authority from the latter.
2. Solutio indebiti - juridical relation which arises whenever a person unduly delivers a thing
through mistake to another who has no right to demand it. (Jurado, Obligations and Contracts,
2010, p. 10)

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 V. SALES

A. Nature and Form

1. Essential requisites

129. What is a sale?

In a contract of sale, the seller transfers the property sold to the buyer for a consideration called
the price, which means ownership is transferred to the buyer upon its execution through any of
the modes of delivery or tradition. (Heirs of Corazon Villeza v. Aliangan, G.R. No. 244667-69,
December 2, 2020, J. Caguioa)

2. Perfection

130. Is a Contract of Sale perfected by delivery?

No, contract of sale is perfected by mere consent and not by delivery. The contract of sale is
perfected at the moment there is a meeting of minds upon the thing which is the object of the
contract and upon the price (Art. 1475, NCC). However, there can be no ownership without delivery
and delivery need not be actual.

3. vs. contract to sell

131. What is a contract to sell?

In a contract to sell, the seller merely "agrees to transfer" the property object of the sale to the
buyer for a consideration called the price, which implies that ownership is not right away transferred
to the buyer. (Heirs of Corazon Villeza v. Aliangan, ibid.)

B. Capacity to Buy or Sell

C.
132. May a minor enter into a contract of sale?

As a general rule, contracts entered into by minors and other incapacitated persons are voidable
(Arts. 1327 & 1390, NCC). However, where necessaries are sold and delivered to a minor, he must
pay a reasonable price therefor even if it was entered without the intervention of the parent or
guardian (Art. 1489[2]). The sale of real estate, made by minors who pretend to be of legal age,
when in fact they are not, is valid, and they will not be permitted to excuse themselves from the
fulfilment of the obligations contracted by them, or to have them annulled ( Mercado and Mercado
vs. Espiritu, G.R. No. L-11872, December 1, 1917)

D. Effects of the Contract when the Thing Sold has been Lost

133. What is the effect of loss of thing at the time of sale?

When the thing which is the object of the contract has been entirely lost at the time the contract
of sale is perfected, the contract shall be without any effect. (Art. 1493[1], NCC). On the other
hand, when there is partial loss or when only a portion of the thing is lost or destroyed, the vendee
may elect between withdrawing from the contract and demanding the remaining part, paying its
proportionate price. (Art. 1493[2], NCC)

39
 E. Obligations of Vendor

134. Carlos purchased from Toyota Cubao (Toyota) a brand-new white Toyota Hi-Lux on
November 27, 1997. Carlos made a down payment leaving the balance payable in 36
months with 54% interest. The vehicle was eventually delivered to Carlos two days
later. On December 18, 1998, Carlos demanded replacement of the engine of the
vehicle because it developed a crack after traversing Marcos Highway during a heavy
rain. Carlos asserted that Toyota should replace the engine with a new one based on
an implied warranty. Toyota responded that the alleged damage on the engine was not
covered by a warranty. The refusal of Toyota to replace the engine with a new one
constrained Carlos to file a complaint for damages against Toyota. Is the damage on
the engine covered by a warranty?

No, the damage on the engine is not covered by warranty. In a contract of sale, the seller is
responsible for warranty against the hidden defects which the thing sold may have, should they
render it unfit for the use for which it is intended, or should they diminish its fitness for such use
to such an extent that, had the buyer been aware of the same, he would not have acquired it or
would have given a lower price for it. This is called implied warranty. Actions arising from the
provisions of warranty shall be barred after six months from the delivery of the thing sold. In this
case, the prescriptive period for implied warranty had lapsed. (Carlos B. De Guzman vs. Toyota
Cubao, Inc., G.R. No. 141480, November 29, 2006). Here, there is no existing express warranty
covering such damage, nor is the damage covered by an implied warranty.

F. Obligations of Vendee

135. What are the general obligations of a vendee?

The general obligations of a vendee are the following:

1) Payment of price (Art. 1582, NCC);
2) Accepting the delivery of thing sold (Art. 1582, NCC); and
3) Bear the expenses for the execution and registration of the sale and putting the goods in a
deliverable state, if such is the stipulation (Art. 1488, NCC).

G. Breach of Contract

1. Remedies

136. Kim sold a parcel of land to Red on 12 July 2015, payment and delivery to be made on
12 August 2015. It was stipulated that if payment were not to be made by Red on 12
August 2015, title would not pass and the sale between the parties would
automatically be rescinded. Red failed to pay on 12 August 2015, but offered to pay
three days later, which payment, Kim refused to accept, claiming that their contract of
sale had already been rescinded. Red contended that he should still be allowed to pay
as there has been no demand for rescission either judicially or by notarial act. Is Red’s
contention correct? Why?

No, Red is not correct. Article 1592 of the Civil Code, which provides that the vendee may pay even
after the expiration of the period as long as no demand for rescission has been made either
judicially or by notarial act, applies only to contracts of sale and not to contracts to sell or
conditional sales where title passes to the vendee only upon full payment of the purchase price
(Valarao v. CA, G.R No. 130347, March 3, 1999). Here, the contract executed by Kim and Red is
not a contract of sale but a conditional sale, where title would pass only after the full payment of

40
 the price on the agreed date. Hence, Red is not correct in his basis to pay the price, three days
after the stipulated date.

2. Recto Law and Maceda Law

137. Dean entered into a purchase agreement with Filinvest over a lot in Morong, Rizal. The
total contract price was P2,000,000, payable on monthly instalment for four years.
From January 12, 2003 to February 15, 2005, Orbe paid a total of P750,030.20, mainly
through several Metrobank checks. Dean was unable to make further payments
allegedly on account of financial difficulties. Filinvest sent a notice of cancellation.
Noting that efforts to seek for a reconsideration of said cancellation proved futile, and
that the parcel had since been sold by Filinvest in evident bad faith, Dean filed against
Filinvest a complaint for refund with damages. Can Dean avail the benefits under
Section 3 of Maceda Law?

No, Dean cannot avail of the benefits under Section 3 of the Maceda Law. When the Maceda Law
speaks of paying "at least two years of instalments", it refers to the proportionate value of the
instalments made, as well as payments having been made for at least 2 years. It does not only
refer to the period when the buyer has been making payments, with total disregard for the value
that the buyer has actually conveyed. When the buyer's payments fall short of the equivalent of
two (2) years' worth of instalments, the buyer may not avail of the benefits under Section 3 ( Orbe
vs. FilInvest, G.R. No. 208185, September 06, 2017). Here, Dean’s total payments from January
12, 2003 to February 15, 2005, did not amount to the aggregate value of 24 monthly instalments,
or at least Php1,000,000.00 for the same period. Hence, Dean cannot avail of the benefits under
Section 3 of the Maceda Law.

138. Brick ‘n Tile (BNT) purchased several heavy machineries from Single Equipment
Philippines (SEP) for Php10 Million, payable in 36 monthly instalments. A chattel
mortgage was constituted on the same machineries as security for the amount. As
additional security, the President of BNT, Stan Smirk, mortgaged his personal house
and lot. BNT failed to pay the 16th and succeeding monthly instalments. SEP then
commenced a collection suit against BNT, and in the course of the proceedings, a writ
of attachment was issued against BNT’s properties, including the mortgaged
machinery. The attached properties were subsequently sold at public auction, but the
proceeds thereof were insufficient to satisfy the judgment credit.

a) Can SEP legally recover the deficiency?

b) Instead of collecting the deficiency, can SEP commence extrajudicial proceedings
to foreclose the mortgage on Stan’s house and lot in order to recover the
deficiency?

a) Yes, SEP can legally recover the deficiency. Under jurisprudence, if there has been no
foreclosure of the chattel mortgage nor a foreclosure sale, the prohibition against further
collection under the Recto Law does not apply. Here, there has been no foreclosure of the
chattel mortgage nor a foreclosure sale and instead, SEP instituted a collection suit. Hence,
should the proceeds resulting from public auction be insufficient, SEP can legally recover the
deficiency. (Sps. Rosario vs. PCI, G.R. No. 139233, November 11, 2005)

b) No, SEP cannot foreclose the mortgage in lieu of collection of deficiency. Foreclosure of
mortgage and collection of deficiency under the Recto Law, are alternative, and not cumulative.
The exercise of one would bar the exercise of others. Here, SEP already chose to institute a
collection suit. This barred the remedy of extrajudicial foreclosure. Thus, SEP cannot

41
 commence extrajudicial proceedings to foreclose the mortgage on Stan’s house and lot in order
to recover the deficiency. (Ibid.)

H. Extinguishment

1. In general

139. What are the modes of extinguishment in a Contract of Sale?

Sales are extinguished by the following (Art. 1600, NCC):

1. The same causes as all other obligations as enumerated in Article 1231:
a. Payment/performance
b. Prescription
c. Loss of thing due
d. Annulment
e. Novation
f. Condonation/remission
g. Confusion/merger
h. Compensation
i. Rescission
j. Resolutory condition fulfilled
k. Redemption (Conventional or Legal)
2. By Conventional Redemption;
3. By Legal redemption.

140. Does payment or performance extinguish the contract of sale itself?

No, payment or performance only extinguishes the obligations to which they pertain to in a contract
of sale, but not necessarily the contract itself since the relationship between buyer and seller
remains after the performance or payment, such as the continuing enforceability of warranties of
the seller.(Villanueva, Law on Sales, 2009, p. 515)

2. Pacto de retro sale

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

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

3. Equitable mortgage

142. On July 14, 2004, Pedro executed in favor of Juan a Deed of Absolute Sale over a parcel
of land covered by TCT No. 6245. It appears in the Deed of Sale that Pedro received
payment from Juan of P120,000.00 as purchase price. However, Pedro retained the
owner's duplicate of said title. Thereafter, Juan, as lessor, and Pedro, as lessee,
executed a contract of lease over the property for a period of one (1) year with a
monthly rental of P1,000.00. Pedro, as lessee, was also obligated to pay the realty
taxes on the property during the period of lease. Subsequently, Pedro filed a complaint
against Juan for the reformation of the Deed of Absolute Sale, alleging that the
transaction covered by the deed was an equitable mortgage. Juan alleged that the
property was sold to him under the Deed of Absolute Sale, and interposed

42
 counterclaims to recover possession of the property and to compel Pedro to turn over
to him the owner's duplicate of title. Resolve the case with reasons.

The complaint of Pedro against Juan should be dismissed. The instances when a contract may be
presumed to be an equitable mortgage are enumerated in Article 1602 of the Civil Code:

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

2. When the vendor remains in possession as lessee or otherwise
3. When upon or after the expiration of the right to repurchase, another instrument extending
the period of redemption or granting a new period is executed
4. When the purchaser retains for himself a part of the purchase price
5. When the vendor binds himself to pay the taxes on the thing sold
6. In any other case where it may be fairly inferred that the real intention of the parties is that
the transaction shall secure the payment of a debt or the performance of any other obligation.

I. Assignment of Credits

143. May an assignment of credit bestow upon a third party the right to collect against a
sum of money owned another in a contract?

Yes, assignment of credit is the process of transferring the right of an assignor to the assignee.
The assignment may be done either gratuitously or onerously, in which case, the assignment has
an effect similar to that of a sale (Nyco Sales Corp. v. BA Finance Corp. G.R No.71694, August 16,
1991). This is not a case of subrogation, and the debtor's consent is not essential for the validity
of the assignment.

VI. LEASE

a. General provisions

144. May consumable goods be the subject of a lease agreement?

No. Consumable goods cannot be the subject matter of a contract of lease of things. To use or
enjoy them, they will have to be consumed. This cannot be done in lease since ownership over
them is not transferred by the contract of lease (De Leon, Comments and Cases on Sales and
Lease, 2005, p. 589) except if the goods are merely exhibited or if they are accessory to an
industrial establishment. (Art. 1645, NCC)

145. What are the nature and characteristics of a contract of lease?

A contract of lease is a consensual, bilateral, onerous and commutative contract by which the
owner temporarily grants the use of his property (Chua Tee Dee v. Court of Appeals, G.R. No.
135721, May 27, 2004) or rendering of some service to another who undertakes to pay the rent.
Being a consensual contract, it is perfected at the moment there is a meeting of the minds on the
thing and the cause and consideration, which are to constitute the contract (Bugatti v. Court of
Appeals, G.R. No. 138113, October 17, 2000), citing Vitug, Compendium of Civil Law and
Jurisprudence, 1993 edition, 653-654).

b. Rights and obligations of the lessor

146. In the event that improvements are introduced to the land subject of a lease
agreement, and the lease is terminated without fault of the parties, what are the rights
of the landowner-lessor and the lessee who caused the improvements?

43
 The Lessee has the right to remove the building and other improvements unless the landowner
decides to retain the building at the time of the termination of the lease and pay the lessee one-
half of the value of the improvements at that time. The lessee may remove the building even
though the principal thing may suffer damage but should not cause any more impairment upon the
property leased than is necessary. The lessee is not a builder in good faith because as lessee he
does not claim ownership over the property leased. The landowner/lessor may refuse to reimburse
1/2 of the value of the improvements and require the lessee to remove the improvements. (Art.
1678, NCC)

c. Rights and obligations of the lessee

147. State the rule on the assignment of lease to a third person and the subleasing of the
premises to a third person.

The lessee of real property may not assign the lease to a third person without the lessor’s consent,
unless there is a stipulation in the contract of lease to the contrary. On the other hand, the lessee
may sublease the premises to a third person without the consent of the lessor, unless there is an
express prohibition in the contract of lease. (Arts. 1649-1650, NCC)

VII. PARTNERSHIP

A. General provisions

148. What are the characteristics of a contract of partnership?

A contract of partnership is a principal contract that does not depend on other contracts;
preparatory that is entered as a means to an end; commutative contract which undertaking of each
one is considered equal with others; consensual that is perfected by mere consent; bilateral or
multilateral that is entered by two or more persons; onerous where contributions must be made;
and nominate since it has a special designation in law. (De Leon & De Leon, Jr., Comments and
Cases on Partnership, Agency, and Trusts, 2019, pp. 11-12)

B. Obligations of the partners

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

A partner by estoppel is liable to any such person to whom such representation has been made
and to those who, on the faith of such representation, given credit to the actual or apparent
partnership.

a. When partnership liability results, he is liable as though he were an actual member of the
partnership;
b. When no partnership liability results, he is liable pro rata with the other persons, if any, so
consenting to the contract or representation; and
c. When there are no such other persons, he is separately liable. (Art. 1825, NCC)

44
150. What are the rules to determine whether a partner can engage in a separate business?

CAPITALIST PARTNER INDUSTRIAL PARTNER

General Rule Cannot engage in his own account Cannot engage in business for himself
in any operation which is of the (absolute prohibition)
kind of business in which the
partnership is engaged

Exception Contrary stipulation The partnership expressly permits him

to do so.

Consequence He shall bring to the common funds The capitalist partners may either:
of Violation any profits accruing to him from his a. Exclude him from the firm, with
of the transactions. right to damagers; or
Prohibition b. Avail themselves of the benefits
He shall also personally bear all the which he may have obtained.
losses.

(Arts. 1808 and 1789, NCC)

151. What are the rights of the partners?

Some of the rights of partners enumerated under the NCC are: Property rights (Art. 1810, NCC);
rights in specific partnership property interest in the partnership (share in surplus and profits) (Art.
1812, NCC); to participate in management (Art. 1803, NCC); to associate with another person in
his share (Art. 1804, NCC); to inspect and copy partnership books (Art. 1805, NCC); to demand a
formal account (Art. 1809, NCC); and to ask for dissolution of the firm at the proper time (Art.
1830-1931, NCC).

152. What is the nature and extent of a partner's obligation for partnership liabilities?

The partners' obligation with respect to the partnership liabilities is subsidiary in nature. It provides
that the partners shall only be liable with their property after all the partnership assets have been
exhausted. Moreover, Article 1816 of the NCC provides that the partners' obligation to third persons
with respect to the partnership liability is pro rata or joint (Guy v Gacott, G.R. No. 206147, January
13, 2016)

C. Dissolution and winding up

153. Define dissolution, winding up, and termination of a partnership.

Dissolution Winding up Termination

It is the change in the relation of
the partners caused by any
partner ceasing to be associated in
the carrying on as distinguished
from the winding up of the
business (Art. 1828, NCC)
The process of settling Point in time after all the
business affairs after partnership affairs have been
the partnership’s wound up (Paras, Civil Code of
dissolution. the Philippines Annotated, 2016,
p.702).

45
154. What are the rights of partners upon dissolution of the partnership?

Without violation of Due to expulsion of a Due to violation of partnership

partnership partner agreement
agreement

a. To have Rights of the expelled Rights of the innocent partner:

partnership property partner: a. To have partnership property
applied to discharge the a. To be discharged from applied for payment of its liabilities;
liabilities of the all partnership liability; b. To receive in cash his share in the
partnership; surplus;
b. To receive in cash only c. To demand damages from the
b. To have surplus the net amount due him guilty partner;
applied to pay in cash from the partnership. d. To continue the business under
the net amount owing to the same name;
partners. e. To possess the partnership
property should they decide to
continue the business.

Rights of the guilty partner:

1. If business is not continued:
a. To have partnership
property applied to discharge
partnership liabilities;
b. To receive his share of
the surplus less damages
owing to the innocent partner.

2. If business is continued:
a. To have the value of his
interest less damages owing to
the innocent partner;
b. To be released from all
existing and future liabilities of
the partnership.

(Art. 1837, NCC)

46
 D. Limited partnership

155. Differentiate general partnership and limited partnership.

GENERAL PARTNERSHIP LIMITED PARTNERSHIP

Manner of General Rule: Any form, by contract Needs compliance with the requirements
constitution or conduct of parties set forth by law:
a. Signed and sworn certificate or
Exception: When immovable articles of limited partnership;
property or real rights are b. Filing of certificate or articles with
contributed thereto, a public SEC. (Art. 1844, NCC)
instrument is necessary. (Art. 1771,
NCC)

Members Only general partners (Art. 1767, One or more general partners and one or
NCC) more limited partners (Art. 1843, NCC)

Firm Name May or may not include the name of
one or more of the partners (Art.
1815, NCC)
General Rule: Must not include the name
of the limited partner
Exceptions:
a. It is also the surname of a general
partner, or
b. Prior to the time when the limited
partner became such, the business had
been carried on under a name in which
his surname appeared. (Art. 1846, NCC)

Priority in Claims of the general partners with Claims of the limited partners, who take
the respect to capital enjoy preference priority over general partners, with
distribution over those with respect to profits respect to profits enjoy preference over
of (Art. 1839, NCC) those with respect to capital (Art. 1863,
partnership NCC)
assets after
dissolution

156. Differentiate a general partner and a limited partner.

GENERAL PARTNER LIMITED PARTNER

Liability to Personally liable for partnership Liability extends only to his capital
third persons obligations (Art. 1816, NCC) contribution (Arts. 1845, 1848, and
1856, NCC)

47
Manner of All of the general partners shall have No share in the management (Art.
management an equal right in the management of 1848 in relation to Art. 1851, NCC)
when not the business, whether or not the
agreed upon partner has made any capital
contribution (Arts. 1803 and 1810,
NCC).

Contribution Money, property, or service (Art. 1767, Cash or property, but not services
NCC) (Art. 1845, NCC)

Priority in the Claims of the general partners with Claims of the limited partners, who
distribution respect to capital enjoy preference take priority over general partners,
of over those with respect to profits (Art. with respect to profits enjoy
partnership 1839, NCC) preference over those with respect
assets after to capital (Art. 1863, NCC)
dissolution

Propriety of May be a proper party to proceedings General Rule: Not a proper party to
being a party by or against a partnership proceedings by or against a
to partnership
proceedings
by or against Exceptions:
a partnership
a. He is also a general partner
(Art. 1853, NCC), or
b. The object of the proceeding is
to enforce a limited partner’s right
against, or liability to, the
partnership (Art. 1866, NCC).

Assignment May not be assigned as to make the Freely assignable, with the assignee
of interest in assignee a new partner without the acquiring all the rights of the limited
partnership consent of the other partners (Art. partner subject to certain
1813, NCC) but he may associate a qualifications (Art. 1859, NCC)
third person with him in his share (Art.
1804, NCC)

48
 Name in firm May or may not appear in the firm General Rule: Must not include the
name name (Art. 1815, NCC) name of the limited partner

Exceptions:

a. It is also the surname of a

general partner, or
b. Prior to the time when the
limited partner became such, the
business had been carried on under
a name in which his surname
appeared. (Art. 1846, NCC)

Prohibition General capitalist partner – prohibited No prohibition, considered as a mere

from from engaging in a business which is of contributor (Art. 1866, NCC)
engaging in the kind of business in which the
business partnership is engaged, unless with
stipulation to the contrary (Art. 1808,
NCC)

Industrial partner – prohibited from

engaging in any business for himself,
unless the partnership expressly
permits him to do so (Art. 1789, NCC)

Effect of Dissolution of partnership (Art.s 1860, Do not result to dissolution because

retirement, 1830, and 1831, NCC). the limited partner’s executor or
death, administrator shall have the rights of
insanity or a limited partner for the purpose of
insolvency selling his estate (Art. 1861, NCC).

VIII. AGENCY

A. Nature, form and kinds

157. What are the nature and characteristics of a contract of agency?

It is a principal, preparatory, bilateral, onerous, consensual, nominate and commutative contract.

This means that it is a contract that can stand by itself; a means by which other contracts may be
entered into; parties are bound reciprocally to each other; presumed to be for a compensation,
unless there is proof to the contrary. (Art. 1875, NCC); perfected by mere consent; has a name
given to it by law. (Art. 1868, NCC); and parties give and receive almost equivalent values hence,
there is real fulfillment.

49
 B. Obligations of the agent

158. What are the obligations of the agent to the principal?

The following are the obligations of the agent to the principal:

1. To carry out the agency which he has accepted (Art. 1884, NCC);
2. To be liable for damages, which, through his non-performance, the principal may suffer ( Art.
1884, NCC);
3. To finish business already begun, on the death of the principal, should delay entail any danger
(Art. 1884, NCC);
4. If he declines the agency, to observe diligence of a good father of a family in custody and
preservation of goods forwarded to him by the owner until the latter appoints an agent (Art.
1885, NCC);
5. To advance necessary funds should there be a stipulation to do so, except when the principal
is insolvent (Art. 1886, NCC);
6. To act in accordance with the instructions of the principal. In default thereof, to do all that a
good father of a family would do, as required by the nature of the business (Art. 1887, NCC);
7. Not carry out an agency if its execution would manifestly result in loss or damage to the
principal (Art. 1888, NCC);
8. To be liable for damages if, there being a conflict between his interests and those of the
principal, he should prefer his own (Art. 1889, NCC);
9. If he has been authorized to lend money at interest, he cannot borrow it without the consent
of the principal (Art. 1890, NCC);
10. To render an account of his transactions and to deliver to the principal whatever he may have
received by virtue of the agency, even though it may not be owing to the principal (Art. 1891,
NCC);
11. To be responsible for the interest on the sums he has applied to his own use from the day on
which he did so, and on those which he still owes after the extinguishment of the agency (Art.
1896, NCC); and
12. To be responsible not only for fraud, but also for negligence, which shall be judged with more
or less rigor by the courts, according to whether the agency was or was not for compensation
(Art. 1909, NCC).

159. What is the liability of the principal if the agent has exceeded his authority but was
allowed by the former?

The agent and principal are solidary liable. An agent is deemed to have acted within the scope of
his authority as to third persons if the contract is beyond the scope of agent’s authority and the
principal allowed the agent to act as though the latter had full powers, in which case, the principal
is solidarily liable with the agent (Art. 1911, NCC).

C. Obligations of the principal

160. What are the obligations of the principal?

In the absence of agreement, the primary obligations of a principal are: to comply with all the
obligations which the agent may have contracted within the scope of his authority ( Art. 1910, NCC);
to advance to the agent, should the latter so request, the sums necessary for the execution of the

50
 agency (Art. 1912 (1), NCC); to reimburse the agent therefore, even if the business or undertaking
was not successful, provided the agent is free from all fault ( Art. 1912 (2), NCC); to indemnify the
agent for all the damages which the execution of the agency may have caused the latter, without
fault or negligence on his part (Art. 1913, NCC); and to pay the agent compensation agreed upon
or the reasonable value of the latter’s services.

D. Modes of extinguishment

161. What are the modes of extinguishment of an Agency?

To following are some modes of extinguishment of an agency:

a. By its revocation;
b. By the withdrawal of the agent;
c. By the death, civil interdiction, insanity or insolvency of the principal or of the agent;
d. By the dissolution of the firm or corporation which entrusted or accepted the agency;
e. By the accomplishment of the object or purpose of the agency;
f. By the expiration of the period for which the agency was constituted. (Art. 1919, NCC)

162. What are the instances when an agency continues even after the death of a principal?

1. In cases when an agency is coupled with a common interest.

2. If it’s coupled with the interest of a third person who has accepted the stipulation in his favor.
It is a well-settled general rule that if the authority of an agent is coupled with an interest, it
is not revocable by the death, act, or condition of the principal, unless there is some agreement
to the contrary between the parties. (Art. 1930, NCC)

163. If the agent dies, what will be the legal consequences by virtue of his/her death?

If the heirs of the dead agent are unable to give notice, one good measure for them to do is to
consign the object or property of the agency in court. In this way, they can still protect the interests
of the principal, who trusted their predecessor in interest. The heir’s duty arises from what may be
termed as a presumed agency or tacit agency or an agency by operation of law. (Art. 1932, NCC)

IX. Credit Transactions

A. Loan

164. Differentiate mutuum from commodatum.

COMMODATUM MUTUUM or SIMPLE LOAN

As to the delivery of something not consumable delivery of money or other consumable

object so that the bailee may use the same for thing, upon the condition that the same
a certain time and return it amount of the same kind and quality
shall be paid

As to the movable or immovable thing, which is money or other consumable thing

subject ordinarily non-consumable
matter

51
 COMMODATUM MUTUUM or SIMPLE LOAN

As to essentially gratuitous may be gratuitous or with a stipulation

nature to pay interest

As to bailor retains the ownership of the ownership passes to the borrower

transfer of thing loaned
ownership
(Spouses Abella vs. Romeo, G.R. No. 195166, July 08, 2015)
B. Deposit
165. When is a depositary liable for the loss of thing through fortuitous event?

The depositary is liable for the loss of the thing through a fortuitous event:

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

166. A. What contract, if any, was perfected between a car owner and a hotel when the car
owner surrendered the key to his car to the hotel’s parking attendant?

The contract is a necessary deposit. Under Art. 1998 of the NCC, a deposit of effects made by
travelers or guests in hotels or inns is considered a necessary deposit. Under Art. 1999 of the NCC,
the necessary deposit includes not only the personal effects brought inside the hotel premises but
also vehicles, animals, and articles which have been introduced or placed in the annexes of the
hotel.

B. What is the liability, if any, of the hotel for the loss of such car?

Under Art. 1999, the hotel-keeper is liable for the vehicles, animals, and articles which have been
introduced or placed in the annexes of the hotel. The contract of deposit was perfected when the
guest surrendered the keys to his vehicle to the parking attendant and the hotel is under the
obligation of safely keeping and returning it. Accordingly, the hotel is liable for the loss of the
vehicle.

C. Guaranty and Suretyship

167. What is meant by the “benefit of excussion”?

It means that the guarantor cannot be compelled to pay the creditor unless the latter has exhausted
all the property of the principal debtor, and has resorted to all of the legal remedies against debtor.
(Art. 2058, NCC)

168. What is the benefit of division?

Should there be several guarantors of only one debtor and for the same debt, the obligation to
answer for the same is divided among all. The creditor cannot claim from the guarantors except
the shares which they are respectively bound to pay, unless solidarity has been expressly
stipulated. (Art. 2065, NCC)

52
169. What is the extent of the “right to indemnification” of the guarantor against the
principal debtor?

General Rule: A guarantor who pays for a debtor shall be indemnified by the latter and shall be
legally subrogated to the rights which the creditor has against the debtor.

Exception: A person who pays without the knowledge or against the will of the debtor has the
right to recover only insofar as the payment has been beneficial to the debtor. If the obligation
was subject to defenses on the part of the debtor, the same defenses which could have been set
up against the creditor can be set up against the paying guarantor. (Philippine Export and Foreign
Loan Guarantee Corporation vs. V.P. Eusebio Construction, Inc., G.R. No. 140047, July 13, 2004)

170. What is a letter of credit?

A letter of credit is a written instrument whereby the writer requests or authorizes the addressee
to pay money or deliver goods to a third person and assumes responsibility for payment of debt
therefore to the addressee. (Transfield Philippines, Inc. vs. Luzon Hydro Corp, G.R. No. 146717,
November 22, 2004)

171. Distinguish suretyship from guaranty.

SURETYSHIP GUARANTY

What is A surety is an insurer of debt. A guarantor is an insurer of the solvency

insured of the debtor.

Undertaking An undertaking that the debts shall
involved be paid (Surety promises to pay
the principal’s debt if the principal
will not pay.)
An undertaking that the debtor shall pay
(Guarantor agrees that the creditor, after
proceeding against the principal, may
proceed against the guarantor if the
principal is unable to pay.)

Nature of A surety is primarily liable to the A guarantor is secondarily or subsidiarily

liability creditor. liable to the creditor.

D. Quasi-contracts
172. What are the requisites of negotiorum gestio?

The following must be present before an obligation may arise from negotiorum gestio:

a. An ―officious manager‖ or ―gestor‖ voluntarily assumes the management or agency of the

business or property of another;
b. Property or business must be neglected or abandoned; otherwise what results is a case of
unenforceable contract and not negotiorum gestio.
c. No authorization from the owner, whether express or implied, otherwise what results is a
contract of agency and not negotiorum gestio; and
d. Assumption of agency or management must be done in good faith. (Art. 2144, NCC)

53
 X. TORTS AND DAMAGES

A. Torts

1. Culpa aquiliana v. culpa contractual v. culpa criminal

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

Culpa Aquiliana Culpa Contractual Culpa Criminal

As to the Basis of Liability
Obligation arises from the breach of Existence of a law
Fault or negligence resulting in damage or the contract because of defendant’s clearly punishing
injury to another (Art. 2176, NCC). failure to exercise due care in its the act (Nullum
performance (Art. 1173, NCC). crimen sine lege).
As to the Nature of Negligence
Negligence is merely incident to the
performance of an obligation
Direct, substantive and independent (Huang Direct,
already existing because of a
vs. Philippine Hoteliers, Inc. GR No. 180440, substantive and
contract (Huang vs. Philippine
December 5, 2012). independent
Hoteliers Inc., GR No. 180440, Dec.
5, 2012).
As to the Proof Needed
Preponderance of evidence (Rule
Preponderance of evidence (Rule 133, Section Proof beyond
133, Section 1, Rules of Court;
1, Rules of Court; Casupanan vs. Laroya, GR reasonable doubt
Barredo vs. Garcia, GR No. L-
No. 145391, August 26, 2002). (Ibid.).
48006, July 8, 1942).
As to the Existence of Pre-Existing Contractual Obligation
No pre-existing obligation (except the duty to
There is pre-existing obligation (a
be careful in all human actuations (Huang vs.
contract, either express or implied) None.
Philippine Hoteliers, Inc. GR No. 180440,
(Ibid.)
December 5, 2012).
As to the Employer’s Defense of Exercising the Diligence of “Good Father of a Family” in
the Selection and Supervision of his Employees
As a GR, a complete proper defense.
However, even if the employer can prove the
diligence in the selection and supervision (the Not a proper
latter aspect has not been established herein) defense (Albano,
of the employee, still if he ratifies the wrongful Not a complete and proper defense. Torts and
acts or take no step to avert further damage, Damages, supra
the employer would still be liable. (Spouses at 7).
Fontanilla vs. Hon. Maliaman, GR No. L-
55963, December 1, 1989).
As to the Presumption of Negligence
The presumption of negligence in
culpa contractual immediately
The innocence of
No presumption of negligence. Injured party attaches by a failure of the
the accused is
must prove the negligence of the defendant covenant or its tenor (FGU
presumed until
(Cangco vs. Manila Railroad Company, GR No. Insurance Corporation vs. G.P.
the contrary is
L-12191, October 14, 1918). Sarmiento Trucking Corporation,
proven.
GR No. 141910, Aug. 6, 2002)

54
 In culpa contractual, the plaintiff
only needs to establish the
existence of the contract and the
obligor’s failure to to perform his
obligation (Torres-Madrid
Brokerage, Inc. vs. FEB Mitsui
Marine Insurance Co. Inc., GR No.
194121, July 11, 2016).
As to the Nature of the Right Violated
Private Right Private Right Public Right
As to the Governing Law
Governed by
Governed by Article 2176; Articles 1172-1174 Governed by Arts. 1170-1174 of the Article 365 of the
are also applicable (Art. 2178, NCC). Civil Code. Revised Penal
Code.

3. Vicarious liability

174. How should the Registered-Owner Rule and the rule on Employer’s Vicarious Liability
under Article 2180 of the Civil Code be harmonized in cases where both rules apply?

In cases where both the registered-owner rule and Article 2180 apply, the plaintiff may first prove the
employer’s ownership of the vehicle involved in a mishap by presenting the vehicle’s registration in
evidence. Thereafter, a disputable presumption that the requirements for an employer’s liability under
Article 2180 of the Civil Code have been satisfied will arise. The burden of evidence then shifts to the
defendant to show that no liability under Article 2180 has ensued. (Caravan Travel and Tours
International, Inc. vs. Abejar, G.R. No. 170631, February 10, 2016)

4. Res ipsa loquitur

175. What are the requisites for the doctrine of res ipsa loquitur to apply?

The following requisites must concur: (a) the accident is of a kind which does not ordinarily occur
unless someone is negligent; (b) the cause of the injury was under the exclusive control of the person
in charge and (c) the injury suffered must not have been due to any voluntary action or contribution
on the part of the person injured. (Perla Compania de Seguros, Inc. and Pascual vs. Sps. Sarangaya
III, G.R. No. 147746, October 25, 2005)

5. Last clear chance

176. What is the doctrine of last clear chance? When is it applied?

The doctrine of last clear chance provides that where both parties are negligent but the negligent act
of one is appreciably later in point of time than that of the other, or where it is impossible to determine
whose fault or negligence brought about the occurrence of the incident, the one who had the last
clear opportunity to avoid the impending harm but failed to do so, is chargeable with the consequences
arising therefrom. Stated differently, the rule is that the antecedent negligence of a person does not
preclude recovery of damages caused by the supervening negligence of the latter, who had the last
fair chance to prevent the impending harm by the exercise of due diligence. (Philippine National
Railways vs. Vizcara, G.R. No. 190022, February 15, 2012)

55
 6. Damnum absque injuria

B. Proximate cause

C. Negligence

177. What is the test used to determine the existence of negligence in a particular case?

The test by which to determine the existence of negligence in a particular case may be stated as
follows: Did the defendant in doing the alleged negligent act use that person would have used in the
same situation? If not, then he is guilty of negligence. The law here in effect adopts the standard
supposed to be supplied by the imaginary conduct of the discreet paterfamilias of the Roman law. The
existence of negligence in a given case is not determined by reference to the personal judgment of
the actor in the situation before him. The law considers what would be reckless, blameworthy, or
negligent in the man of ordinary intelligence and prudence and determines liability by that. (Picart vs.
Smith, G.R. No. L-12219, March 15, 1918)

1. Standard of care

2. Presumptions

D. Damages

1. General Provisions

178. What is the difference between damage, injury, and damages?

Damage is the loss, hurt, or harm which results from the injury; Injury is the legal invasion of the legal
right; and Damages are the compensation awarded for the damage suffered. ( Far East Bank and Trust
Company vs. Pacilan, Jr., G.R. No. 157314, July 29, 2005)

2. Kinds of damages

179. What are the classifications of damages?

Under Art. 2197 of the NCC, the following are the kinds of damages: (a) moral; (b) exemplary or
corrective; (c) nominal; (d) temperate or moderate; (e) actual or compensatory; and (f) liquidated.

180. What are the kinds of actual or compensatory damages?

These are the kinds of actual or compensatory damages: (a) Damnum Emergens/Dano Emergente
(actual damages) - All the natural and probable consequences of the act or omission complained of,
classified as one for the loss of what a person already possesses; and (b) Lucrum Cessans/Lucro
Cesante (compensatory damages) - For failure to receive, as benefit, that which would have
pertained to him (expected profits) (Filipinas Synthetic vs. De Los Santos, G.R. No. 152033, March 16,
2011)

181. When may nominal damages be awarded?

Nominal damages may be awarded to a plaintiff whose right has been violated or invaded by the
defendant, for the purpose of vindicating or recognizing that right and not for indemnifying the plaintiff

56
 for any loss suffered by him. Its award is thus not for the purpose of indemnification for a loss but for
the recognition and vindication of a right (Libcap Marketing Corp. vs. Baquial, G.R. No. 192011, June
30, 2014)

182. When may Attorney’s Fees be awarded?

Attorney’s fees may be awarded when a party is compelled to litigate or incur expenses to protect its
interest, or when the court deems it just and equitable. (Durban Apartments Corp. vs. Pioneer
Insurance and Surety Corp., G.R. No. 179419, January 12, 2011)

183. What are the instances when Attorney’s fees may not be recovered?

a. When it is shown that the judgment creditor did not come to court with clean hands; and
b. When there is no evidence of fraud and bad faith on the part of the tortfeasor. ( Tac-an Danao vs.
CA, G.R. No. 62251, July 29, 1985)
c. When damages may be recovered.

3. In case of death

184. In case of death due to a negligence act or a crime, what kind of damages may be
recovered?

The following are the kind of damages that may be recovered: (a) civil indemnity ex delicto; (b) actual
or compensatory damages; (c) moral damages; (d) exemplary damages; (e) attorney’s fees and
expense of litigation; (f) interest, in proper cases; and (g) temperate damages, in lieu of actual
damages in proper cases (Torreon vs. Aparra, G.R. No. 188493, December 13, 2017).

PART II

I. PROPERTY

A. Classification of Property

185. What properties are considered immovable?

Article 415 of the NCC provides the enumeration of properties considered immovable. They are the
following:

(a) Land, buildings, roads and constructions of all kinds adhered to the soil;
(b) Trees, plants, and growing fruits, while they are attached to the land or form an integral part
of an immovable;
(c) Everything attached to an immovable in a fixed manner, in such a way that it cannot be
separated therefrom without breaking the material or deterioration of the object;
(d) Statues, reliefs, paintings or other objects for use or ornamentation, placed in buildings or on
lands by the owner of the immovable in such a manner that it reveals the intention to attach
them permanently to the tenements;
(e) Machinery, receptacles, instruments or implements intended by the owner of the tenement for
an industry or works which may be carried on in a building or on a piece of land, and which
tend directly to meet the needs of the said industry or works;
(f) Animal houses, pigeon-houses, beehives, fish ponds or breeding places of similar nature, in case
their owner has placed them or preserves them with the intention to have them permanently

57
 attached to the land, and forming a permanent part of it; the animals in these places are
included;
(g) Fertilizer actually used on a piece of land;
(h) Mines, quarries, and slag dumps, while the matter thereof forms part of the bed, and waters
either running or stagnant;
(i) Docks and structures which, though floating, are intended by their nature and object to remain
at a fixed place on a river, lake, or coast; and
(j) Contracts for public works, and servitudes and other real rights over immovable property.

186. Can a land that has been declared as alienable and disposable be still considered as a
land of public domain?

Yes. It only becomes patrimonial upon express declaration of the State that it is no longer needed
for public use, public service, or the development of the national wealth. (Republic vs. City of
Paranaque, G.R. No. 191109, July 18, 2012)

187. Lots “A” and “B” were registered in the name of the Province of Bataan. The Bataan
Colleges (BC) and the Bataan School of Arts and Trades (BSAT), both State-run schools,
occupied both lots. The Congress passed a law, converting the BSAT into Bataan
Polytechnic State College (BPSC). The law provides that “all parcels of land belonging
to the government occupied by BSAT and BC are declared to be the property of the
BPSC.” Congressman Garcia wrote to the Governor of Bataan, requesting the transfer
of the title of the aforesaid lots to BPSC. The Governor refused contending that the
subject lots were patrimonial properties of the Province of Bataan. Is the Governor’s
contention correct?

No, the contention is incorrect. In the case of Sangguniang Panlalawigan of Bataan v Cong. Garcia,
G.R. No. 174964, October 5, 2016, the Court ruled that if the property is owned by the municipal
corporation in its public and governmental capacity, it is public and Congress has absolute control
over it; but if the property is owned in its private or proprietary capacity, then it is patrimonial and
Congress has no absolute control, in which case, the municipality cannot be deprived of it without
due process and payment of just compensation. Here, the subject lots were not patrimonial
properties of the Province of Bataan. In the absence of proof that the Province of Bataan acquired
them with its own private or corporate funds, the lots must be presumed to belong to the State.

B. OWNERSHIP

1. General provisions

188. What is ownership and what are the rights included therein?

Ownership is an independent right of exclusive enjoyment and control of the thing for the purpose
of deriving therefrom all advantages required by the reasonable needs of the owner and the
promotion of the general welfare but subject to the restrictions imposed by law and the right of
others. (Rabuya, Civil Law Reviewer Vol. 1, 2021, p. 461)

The following are the rights included in ownership:

a. Right to enjoy
b. Right to dispose (jus disponendi)
c. Right to vindicate (jus vindicandi)
d. Right to exclude

58
 e. Right to demand indemnity for damages suffered due to lawful interference by a third person
to avert an imminent danger;
f. Right to just compensation in eminent domain cases;
g. Right to construct any works or make any plantations and excavations on the surface or
subsurface of the land;
h. Right to hidden treasure found in the owner’s property; and
i. Right to accessions. (Rabuya, Civil Law Reviewer Vol. 1, 2021, p. 461-462)

a. Rights of builder/planter/sower in good faith

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

Landowner (LO); Builder, Planter, Sower (B, P, S); Owner of the Materials (OM)
BUILDING, PLANTING, OR SOWINGON ONE’S OWN LAND WITH MATERIALS
BELONGING TO ANOTHER
If both the LO and If both the LO and If LO acted in bad If LO acted in good
the OM acted in the OM acted in faith and OM acted in faith and OM acted
good faith bad faith good faith in bad faith
(1) LO may The bad faith of one (1) LO is liable for OM loses his
appropriate neutralizes the bad damages. materials without any
what he has faith of the other. (2) OM may: right whatsoever and
built, planted or Hence, they must be a. Demand the is liable to the LO for
sown, but must treated as if both of value of his damages. (Arts. 447,
pay the value of them acted in good materials plus 449, and 455, Civil
the materials; faith. damages; OR Code)
OR b. Demand the
(2) LO may return return of the
the materials to materials, even
the OM, if it can if injury is
be made without caused to the
damage to the land, plus
materials. damages.

BUILDING, PLANTING, OR SOWING

WITH ONE’S OWN MATERIALS ON THE LAND BELONGING TO ANOTHER
If both the LO If both the LO and If the LO acted in If the LO acted in
and the BPS-OM the BPS-OM acted good faith and the bad faith and the
acted in good in bad faith BPS-OM acted in BPS-OM acted in
faith bad faith good faith
(1) LO may The bad faith of one (1) LO may (1) BPS-OM may:
appropriate as neutralizes the bad appropriate as his a. Demand the
his own the faith of the other. own the works, value of his
works, sowing, Hence, they must be sowing, or materials plus
or planting, but treated as if both of planting, without damages; OR
must pay the them acted in good need of paying b. Demand the
BPS-OM the faith. indemnity, plus return of the
necessary and damages; OR materials,
useful (2) LO may demand even if injury
expenses, and the demolition of is caused to
in proper cases, whatever has been the land, plus
expenses for built, planted, or damages.
pure luxury; OR sown even if injury (Arts. 448-

59
(2) LO may oblige is caused to the 454, Civil
the BP to pay land, plus Code)
the price of the damages; OR
land, if the (3) LO may compel the
value of the BP to pay the price
land is not of the land, even if
considerably the land is
more than that considerably more
of the building than that of the
or trees; and building or trees,
the S, the plus damages.
proper rent.
(4) BPS-OM is entitled
(3) LO is entitled to to reimbursement
remove the of necessary
works, sowing, expenses for the
or planting preservation of the
when, after land.
having chosen
to sell his land,
the BPS-OM
fails to pay for
the same;

(4) Pending
reimbursement,
the BPS-OM has
the right of
retention.

BUILDING, PLANTING, OR SOWING

ON THE LAND OF ANOTHER WITH MATERIALS BELONGING TO A THIRD PERSON
OM acted in good faith OM acted in bad faith
(1) OM must be paid the value of the (1) OM loses his materials without any right
materials; whatsoever and is liable for damages;
(2) BPS is primarily liable to make such (2) LO can claim what has been built, planted,
payment to the OM (with damages if BPS or sown on his land without any obligation
acted in bad faith); to indemnify the OM;
(3) If BPS pays, he becomes the OM and the (3) BPS who acted in good faith may claim from
case would be the same as that of the LO a reasonable compensation for his
building, planting, or sowing with one’s labor;
own materials on the land of another (4) BPS who acted in bad faith is not entitled to
(refer to the table above); anything; he is instead liable for damages.
(4) LO is subsidiarily for the payment of the (Arts. 447-454, Civil Code)
value of the materials. It will attach only
when: the BPS is insolvent; and the LO
chooses to appropriate the building,
planting, or sowing. However, if the LO
pays for the value of the materials, he
becomes the OM, who may: demand
damages from the BPS; or pay the BPS a
reasonable compensation if the latter
acted in good faith.

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 C. CO-OWNERSHIP

190. What are the characteristics of co-ownership?

The following are the characteristics of co-ownership:

a. There are two or more co-owners (Art. 484, NCC);

b. There is a single object which is not materially or physically divided and over which his ideal share
of the whole, each of the co-owner exercises ownership, together with the other co-owners
(Rabuya, Civil Law Reviewer Vol. 1, 2021, p. 548) ;
c. There is no mutual representation by the co-owners (Art. 485, NCC);
d. It exists for the common enjoyment of the co-owners (Art. 486, NCC);
e. It has no distinct legal personality (Art. 484, NCC);
f. It is governed first of all by the contract of the parties; otherwise, by special legal provisions, and
in default of such provisions, by the provisions of Title III on Co-ownership (Id.).

191. May a co-owner seek reimbursement for repair expenses from his co-owners?

Yes, Under Article 488 of the NCC, each co-owner has the right to compel the other co-owners to
contribute to the expenses of preservation of the thing or right owned in common and to the taxes,
even without the consent of the other co-owners.

D. POSSESSION

1. Kinds of possession

192. What are the requisites of possession?

In order that there be possession, the following must be present:

a. There must be occupancy, apprehension or taking; and
b. There must be intent to possess (animus possidendi). (Yu v. Pacleb, G.R. No. 130316 January
24, 2007)

193. What are the kinds of possession?

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

Possession in one’s own name – the possession Possession in another’s name – the possession
which embraces all kinds of possession anchored by a person without any right of his own and one
on a juridical title or right. which is strictly of an agent or merely an
instrument in the exercise of such possession.

Possession in the concept of owner and Possession in the concept of holder

Possession in the concept of owner – it refers to Possession in the concept of holder – one who
the opinion or belief of the neighbors and the possesses as a mere holder acknowledges in
rest of the world and not that of the possessor. another a superior right which he believes to be
ownership, whether his belief be right or wrong.

Possession in good faith and Possession in bad faith

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 Possessor in good faith – he is not aware that Possessor in bad faith – he is aware that there
there exists in his title or mode of acquisition any exists in his title or mode of acquisition any flaw
flaw which invalidates it. which invalidates it. (Rabuya, Civil Law Reviewer
Vol. 1, 2021, p. 594-597)

3. Effect of possession

194. What are the effects of possession?

A. Over the Fruits

If Possessor is in Good Faith

Fruits have already been received Fruits are still pending

The possessor in good faith is entitled to the
fruits received by him before his possession is
legally interrupted.
If at the time the good faith ceases, there should
be pending natural or industrial fruits, the
possessor and the owner shall have a right to a
part of the net harvest and each shall divide the
expenses of cultivation, both in proportion to the
time of their respective possessions.

If Possessor is in Bad Faith

Fruits have already been received Fruits are still pending

A possessor in bad faith has a specific obligation
to reimburse the legitimate possessor for
everything that the former received, and that the
latter could have received had its possession not
been interrupted.
He will lose the fruits in favor of the legitimate
possessor and he will not be entitled to the
reimbursement of the expenses he incurred in
relation to the fruits, including the expenses he
incurred for its production, and preservation.

He has the right to recover from the legitimate

possessor for the expenses from production,
gathering and preservation of the fruits, upon
the latter’s receipt of the reimbursement.
He is entitled to recover the necessary expenses incurred by him for the preservation of the land or
the thing which bore the fruit.

B. Over Expenses

Possessor in Good Faith Possessor in Bad Faith

As to reimbursement
As to right of retention
As to reimbursement
Necessary Expenses
A possessor is entitled to the refund of necessary expenses
incurred by him.
Entitled to retain the thing until Has no right of retention
he has been reimbursed
therefor – in relation to
necessary expenses
Useful Expenses
Entitled to the refund of useful Not entitled to the refund of
expenses useful expenses

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 As to right of retention
As to right of removal
As to reimbursement
As to right of removal
Until the possessor in good faith Has no right of retention
is reimbursed the useful
expenses, he also enjoys the
right to retain the property
He may, in lieu of Has no right to remove the
reimbursement for the useful useful improvements
expenses, remove the useful
improvement
Ornamental Expenses
Not entitled to a refund of the expenses incurred by him for pure
luxury or mere pleasure
Entitled to a right of removal of the ornaments with which they
embellished the principal thing provided that such principal will
suffer no injury

C. Upon Loss of Property

If Possessor is in Good Faith

He is not liable at all for the deterioration or loss of the thing possessed.

Note: The possessor who was originally in good faith but becomes in bad faith upon the service of
the judicial summons on him shall be liable for any deterioration or loss of the thing possessed only
if the same is caused by his negligence or fraudulent acts after the judicial summons.

If Possessor is in Bad Faith

He is liable for any deterioration or loss of the thing even when the same is caused by fortuitous
event.

(Rabuya, Civil Law Reviewer Vol. 1, 2021, p. 600-607)

E. USUFRUCT

1. In general

195. Magnolia owns a 1-hectare land. He informed his best friend Jolly that the latter could use
his land for agricultural production for 5 years. Because of the quality of the soil and the
land’s proximity to clean water, the Department of Agriculture expropriated the land,
paying Magnolia just compensation. Jolly now is asking for compensation since the
usufructuary agreement that he had with Magnolia is not yet finished and it prejudiced her
plans for the remaining duration. Magnolia said that he will not give compensation because
their usufructuary contract had already ceased when the Department of Agriculture
expropriated the land. May Jolly exercise remedies to protect her interests?

Yes, Jolly may exercise remedies to protect her interests. Article 609 of the NCC provides that if the
property held in usufruct was expropriated for public use, the usufruct is not extinguished. The owner
has the options of either replacing it with another thing of the same value and similar condition or
paying the usufructuary the legal interest on the amount of the indemnity for the whole period of the
usufruct, giving security for such payment. Here, Jolly may ask for Magnolia to either provide her with
another land so that he may continue his agricultural endeavors or pay Jolly the legal interest
amounting to the indemnity for the whole period of the usufruct.

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 2. Rights and obligations of the usufructuary

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

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

3. Extinguishment

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

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

F. EASEMENTS

1. Modes of acquiring easements

198. What are the modes of acquiring easements?

There are two modes of acquiring easements: (a) by title; and (b) by prescription.
If the easement is both continuous and apparent, it may be acquired by virtue of prescription within
a period of 10 years. (Art. 620, NCC)

2. Rights and obligations of the owners of the dominant and

servient estates

199. What are the rights of the dominant estate owner?

a. To use the easement and exercise all rights necessary for it (Art. 625, NCC);
b. To make, at his own expense, on the servient estate, any works necessary for the use and
preservation of the servitude, but without altering it or rendering it more burdensome. [Art. 627(1),
Civil Code];
c. To renounce totally the easement, if he desires to be exempt from contributing to the expenses.
(Art. 628, NCC)

200. What are the rights of the servient estate owner?

a. To retain the ownership of the portion of the estate on which the easement is established (Art.
630, NCC);
b. To use the easement, provided he shall also be obliged to pay the expenses necessary for the
preservation and use of the servitude. [Art. 628(2), NCC] (Exception to paying expenses: There
is an agreement to the contrary).

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 c. To change the place or manner of the use of the easement, provided it be equally convenient [Art.
629(2), NCC].

3. Modes of extinguishment

201. What are the different modes of extinguishing easement?

The following are the modes of extinguishing easement:

(a) Redemption agreed upon between the parties;

(b) Expiration of the term;
(c) Merger of ownership of the dominant and servient estate;
(d) Annulment or rescission of title constituting the easement;
(e) Permanent impossibility to use the easement;
(f) Non-use for 10 years;
(g) Renunciation;
(h) Termination of the right of the grantor;
(i) Abandonment of the servient estate;
(j) Eminent domain;
(k) Fulfillment of the resolutory condition. (Art. 631, NCC)

4. Legal v. voluntary easements

202. Distinguish legal easements from voluntary easements

Legal Easements Voluntary Easements

Are those imposed by law have for their object
either public use or the interest of private
persons (Art. 634, NCC).
Are those which may be established by the
owner of a tenement of piece of land as he may
deem suitable, and in the manner and form
which he may deem best, provided that he does
not contravene the laws, public policy or public
order (Art. 688, NCC).

5. Kinds of legal easement

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

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

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 G. NUISANCE

204. What is a nuisance?

Nuisance is any omission, establishment, business or condition of property or anything else which (a)
injures or endangers safety of others; (b) annoys or offends the senses; (c) shocks, defies or
disregards the decency or morality; (d) obstructs or interferes with the free passage to any public
highway or street or any body of water, or (e) hinders or impairs the use of the property (Art. 694,
NCC).

H. MODES OF ACQUIRING OWNERSHIP

1. Occupation

205. What are the requisites for occupation to apply as a mode of acquiring ownership?

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

a. Nature

206. What are the essential elements of donation?

The following are the essential elements of donation:

1. The essential reduction of the patrimony of the donor;

2. The increase in the patrimony of the done; and
3. The intent to do an act of liberality or animus donandi (Heirs of Florencio vs. Heirs of De Leon, G.R.
No. 149570, March 12, 2004).

b. Persons who may give or receive a donation

c. Effects and limitations of donation

207. What are the effects and limitations of donation?

In general, the following are the effects and limitations of donation:

a. Donee may demand the delivery of the thing donated

b. Donee is subrogated to the rights of the donor in the property (Art. 754, NCC).
c. In donations propter nuptias, the donor must release the property from encumbrances, except
servitudes (Art. 85, FC)
d. Donor’s warranty exists if:
i. Expressed
ii. Donation is propter nuptias
iii. Donation is onerous
iv. Donor is in bad faith (Art. 754, NCC)

66
 e. When the donation is made to several donees jointly, they are entitled to equal portions, without
accretion, unless the contrary is stipulated (Art. 753, NCC).

d. Revocation and reduction

208. What are the rules in the revocation of donation?

GR: Once the donation is accepted, it is irrevocable (Gestopa vs. CA, G.R. No. 111904, October 5,
2000).

XPNs: 1. Birth, Adoption or Reappearance (Art. 760, NCC); 2. Inofficious donations (Art. 771, NCC);
and 3. Made in fraud of creditors (Art. 1381[3], NCC).

3. Prescription

a. General provisions

b. Prescription of ownership and other real rights

209. Differentiate acquisitive prescription from extinctive prescription

Distinction Acquisitive Prescription Extinctive Prescription

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

c. Prescription of actions

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

Prescriptive Actions
Periods
Imprescriptible To declare an inexistent or void contract
To quiet title
To demand a right of way
To bring an action for abatement of public nuisance
To enforce a trust
Probate of a will

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 To recover possession of a registered land under the land registration act by the
registered owner
30 years Real actions over immovables (but not foreclosure) without prejudice to the
acquisition of ownership or real rights by acquisitive prescription (Art. 1141, NCC)
10 years Actions upon a written contract
Actions upon an obligation created by law
Actions upon a judgment from the time judgment becomes final
Actions among co-heirs to enforce warranty against eviction in partition
Mortgage action
8 years Action to recover movables without prejudice to acquisition of title for a shorter
period or to the possessor’s title under Art. 559, 1505 and 1133
6 years Actions upon an oral (verbal) contract
Actions upon a quasi-contract
5 years Action for annulment of marriages (except on the ground of insanity) and for legal
separation counted from the occurrence of the cause
Actions against the co-heirs for warranty of solvency the debtor in credits assigned
in partition
Action for the declaration of the incapacity of an heir (devisee or legatee) to
succeed
All other actions whose period are not fixed by law, counted from the time the
right of action accrues
4 years Action to revoke donations due to non-compliance of conditions
Action to rescind partition of deceased’s estate on account of lesion
Action to claim rescission of contracts
Annulment of contracts for vice of consent
Actions upon a Quasi- delict
Action to revoke or reduce donations based on birth, appearance or adoption of a
child
Actions upon an injury to the rights of the plaintiff (not arising from contract)
3 years Actions under the eight -hour labor law
Actions to recover losses in gambling
Money claims as a consequence of employer-employee relationship
Action to impugn legitimacy of a child if the husband or his heirs reside abroad.

I. QUIETING OF TITLE

211. What are the requisites of an action for quieting of title?

In order that an action for quieting of title may prosper, two requisites must concur: (1) the plaintiff
or complainant has a legal or equitable title or interest in the real property subject of the action; and
(2) the deed, claim, encumbrance, or proceeding claimed to be casting cloud on his title must be
shown to be in fact invalid or inoperative despite its prima facie appearance of validity or legal efficacy.
(Rabuya, Property, Property, 2008, p. 264)

J. ACTIONS TO RECOVER PROPERTY

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

Action Interdictal Accion Publiciana Accion Reinvindicatori

It is a summary action that It is a plenary action to recover It is an action whereby the
seeks the recovery of physical the right of possession and the plaintiff alleges ownership over
possession where the issue is which party has the a parcel of land and seeks
dispossession has not lasted for better right of possession. (Id.) recovery of its full possession.

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 more than a year, and is to be (Heirs of Yusingco vs. Busilak,
exclusively brought in the G.R. No. 210504, January 24,
proper inferior court. (Martinez 2018)
vs. Heirs of Lim, G.R. No.
234655, September 11, 2019)

II. CREDIT TRANSACTIONS

A. Antichresis
213. Explain the concept of antichresis

Art. 2132 of the Civil Code provides that in a contract of antichresis, the creditor acquires the right
to receive the fruits of an immovable of his debtor, with the obligation to apply them to the payment
of the interest, if owing, and thereafter to the principal of his credit. Antichresis involves an express
agreement between the parties whereby:
1. The creditor will have the possession of the debtor’s real property given as security;
2. Such creditor will apply the fruits of the said property to the interest owed by the debtor, if
any, then to the principal amount;
3. The creditor retains enjoyment of such property until the debtor has totally paid what he owes;
and
4. Should the obligation be duly paid, then the contract is automatically extinguished proceeding
from the accessory character of the agreement.
(Sps. Reyes vs. Heirs of Malance, G.R. No. 219071, August 24, 2016)

B. Pledge

214. What is the state policy of the Personal Property Security Act?

It is the policy of the State to promote economic activity by increasing access to least cost credit,
particularly for micro, small, and medium enterprises (MSMEs), by establishing a unified and
modern legal framework for securing obligations with personal property. (Sec. 2, R.A. No. 11057)

215. What is a security interest?

Security interest is a property right in collateral that secures payment or other performance of an
obligation, regardless of whether the parties have denominated it as a security interest, and
regardless of the type of asset, the status of the grantor or secured creditor, or the nature of the
secured obligation; including the right of a buyer of accounts receivable and a lessor under an
operating lease for not less than one (1) year. (Sec. 3[j], R.A. No. 11057)

216. What are the requisites of a security agreement?

a. The debtor must have an existing obligation to the creditor;

b. There is intent by the parties, including the grantor, to create a security interest to secure
performance of the principal obligation;
c. The agreement to create a security interest must be in writing;
d. The parties must sign the security agreement;
e. The security agreement must identify the secured obligation; and
f. The security agreement must identify the property that will serve as the collateral. (Aquino,
Essentials of credit transactions and insolvency law, 2021 Ed, 438-439).

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217. How is a security interest perfected?

A security interest may be perfected by:

a. Registration of a notice with the Registry;
b. Possession of the collateral by the secured creditor; and
c. Control of investment property and deposit account. (Sec. 12, R.A. No. 11057)

C. Real Estate Mortgage

218. What may be the object of a contract of real estate mortgage?

Only the following may be the object of a contract of real estate mortgage:
1. Immovable; and
2. Alienable real rights in accordance with the laws, imposed upon immovables. (Art. 2124, NCC)

219. What is the status of the stipulation in a mortgage contract forbidding the owner from
alienating the mortgaged property?

A stipulation forbidding the owner from alienating the immovable mortgaged shall be void. ( Art.
2130, NCC)

220. Enumerate the essential requisites of a contract of real estate mortgage.

The following are the essential requisites to a contract of real estate mortgage:
a. That the mortgage be constituted to Secure the fulfillment of a principal obligation;
b. That the mortgagor be the absolute Owner of the thing mortgaged;
c. That the persons constituting the mortgage have the free Disposal of their property and in the
absence thereof, that they may be legally authorized for the purpose. (Art. 2085, NCC)

221. Are accommodation mortgagors required to be furnished with loan documents and
notice of the borrower’s default?

No. Accommodation mortgagors are not entitled to the proceeds of the loan, nor were required to
be furnished with the loan documents or notice of the borrower’s default in paying the principal,
interests, penalties, and other charges on due date, or of the extrajudicial foreclosure proceedings,
unless stipulated in the deed. An accommodation mortgagor is a third person who is not a debtor
to a principal obligation but merely secures it by mortgaging his or her own property. Like an
accommodation party to a negotiable instrument, the accommodation mortgagor in effect becomes
a surety to enable the accommodated debtor to obtain credit. (Sps. Sierra vs. Paic Savings and
Mortgage Bank, Inc., G.R. No. 197857, September 10, 2014)

III. LAND TITLES AND DEEDS

A. Torrens System; general principles

222. What are the two types of Torrens certificate of title?

1. Original Certificate of Title -The first title issued in the name of the registered owner by
the Register of Deeds covering a parcel of land which had been registered by virtue of a judicial
or administrative proceeding.

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 2. Transfer Certificate of Title - the title issued by the ROD in favor of the transferee to whom the
ownership of the already registered land had been transferred by virtue of a sale or other modes
of conveyance. (Sec. 43, P.D. No. 1529)

B. Regalian Doctrine

223. What are the exceptions to the Regalian doctrine?

The following are the exceptions:

1. The Regalian Doctrine does not negate native title to lands held in private ownership since
time immemorial. (Cruz vs. Secretary of Environment and Natural Resources, G.R. No. 135385,
December 6, 2000)
2. The Indigenous Peoples’ Rights Act of 1997 or the IPRA Law categorically declares ancestral
lands and domains held by native title as never to have been public land –domains and lands
held under native title are, therefore, indisputably presumed to have never been public lands
and are private.

C. Original Registration

224. When does original registration take place?

It takes place when the title to land is made of public record for the first time in the name of its
lawful owner. It refers to the registration procedure from the filing of the application to issuance
of the original certificate of title based on the decree of registration, patent, award, or grant. (Sec.
14, P.D. 1529)

1. Ordinary registration

225. What is the nature of proceeding in ordinary registration?

Land registration or judicial titling is an action in rem or property (subject matter of registration)
and seeks judgment with respect to as against the whole world. (Sec. 2, P.D. No. 1529)

a. Who may apply

226. Who may apply for registration?

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

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

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

71
 b. Decree of registration

227. What are the effects of the decree of registration?

1) It binds the land, quiets title, subject only to such XPNs or liens as may be provided by law.
2) It is conclusive upon all persons including the national government and all branches thereof.
Such conclusiveness does not cease to exist when the title is transferred to a successor. (Sec.
31, P.D. 1529)

c. Review of decree of registration; innocent purchaser for value

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

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

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

XPN to XPN: In no case shall such petition be entertained by the court where an innocent
purchaser for value has acquired the land or an interest therein, whose rights may be prejudiced.
(Sec. 32, P.D. 1529)

D. Certificate of Title

229. What is a certificate of title?

It is the true copy of the decree of registration or the transcription thereof and, similar to the
decree, shall also be signed by LRA Administrator. (Sec. 39, P.D. No. 1529) It is an absolute and
indefeasible evidence of ownership of the property in favor of the person whose name appears
therein. It takes effect upon date of entry thereof, and the land covered thereby becomes a
registered land on that date. (Sec. 40, P.D. No. 1529)

E. Subsequent Registration

230. What is subsequent registration?

It refers to any transaction affecting an originally registered land and which, if in order, is registered
in the Office of the Registry of Deeds concerned. (Sec. 51, P.D. 1529)

1. Voluntary dealings; general provisions

2. Involuntary dealings

231. What are voluntary and involuntary dealings?

Voluntary Dealings Involuntary Dealings

It refers to deeds, instruments or It refers to an attachment, or a copy of any writ,
documents, which are the results of the order or process issued by a court of record,
free and voluntary acts of the parties intended to create or preserve any lien, status,
thereto. right, or attachment upon registered land. It shall

72
 be filed and registered in the Registry of Deeds for
the province or city in which the land lies, and, in
addition to the particulars required in such papers
for registration, shall contain a reference to the
number of the certificate of title to be affected and
the registered owner or owners thereof, and also if
the attachment, order, process or lien is not
claimed on all the land in any certificate of title a
description sufficiently accurate for identification of
the land or interest intended to be affected. A
restraining order, injunction or mandamus issued
by the court shall be entered and registered on the
certificate of title affected, free of charge. (Sec. 69,
P.D. No. 1529)
Kinds
1. Sales, conveyances or transfer of 1. Attachment (Sec. 69, P.D. 1529)
ownership over the titled property; 2. Mandamus (Sec. 73, P.D. 1529)
2. Real property mortgages; 3. Sale on execution of judgment or sales for
3. Lease; taxes (Sec. 74, P.D. 1529)
4. Pacto de retro sale; 4. Adverse claims (Sec. 70, P.D. 1529)
5. Extra-judicial settlement; 5. Notice of lis pendens (Sec. 76, P.D. 1529)
6. Free patent/homestead; 6. Expropriation (Sec. 85, P.D. 1529)
7. Powers of attorney; and 7. Forfeiture (Sec. 75, P.D. 1529)
8. Trusts. (Aquino, Land Registration 8. Auction sale on foreclosure of mortgage (Sec.
and Related Proceedings, 2007, p. 74, P.D. 1529)
184)
Effect of Registration
An innocent purchaser for value of Entry thereof in the day book of the Register of
registered land becomes the registered Deeds is sufficient notice to all persons even if the
owner the moment he presents and files a owner’s duplicate certificate of title is not
duly notarized and valid deed of sale, and presented to the Register of Deeds. (Sec. 31, P.D.
the same day is entered in the book and at 1529)
the same time he surrenders or presents
the owner’s duplicate certificate of title
covering the land sold. (Durawood vs.
Bona, G.R. No. 179884, January 25, 2012)
Presentment of Title
Presentment of Certificate of Title is Presentment of Certificate of Title is not required,
required to record the deed in the registry annotation in entry book is sufficient.
and to make memorandum on title.

a. Adverse claim

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

1. Adverse claimant must state the following in writing:

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

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 b. Notice of lis pendens

233. When is a notice of lis pendens proper?

A notice of lis pendens is proper in actions:

1. To recover possession of real estate;

2. To quiet title thereto;
3. To remove clouds upon the title thereof;
4. For partition; and
5. Any other proceeding of any kind in court directly affecting the title to the land or the use or
occupation thereof or the building thereon. (Sec. 76, P.D. No. 1529, Sec. 14, Rule 13, Rules of
Court)

E. Non-registrable Properties

234. What are non-registrable properties? What is its constitutional basis?

These are properties of public dominion which, under existing legislation, are not the subject of
private ownership and are reserved for public purposes.

All lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils, all forces
of potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other natural
resources are owned by the State. With the XPN of agricultural lands, all other natural resources
shall not be alienated. (Art. XII, Sec. 2, 1987 Constitution).

235. What are the different kinds of non-registrable lands?

1. Property of public domain or those intended for public use, public service or development of
the national wealth;
2. Forest or timber lands;
3. Water sheds;
4. Mangrove swamps;
5. Mineral lands;
6. National parks and plazas;
7. Military or naval reservations;
8. Foreshore lands;
9. Reclaimed lands;
10. Submerged areas;
11. River banks;
12. Lakes, rivers, creeks and lagoons;
13. Reservations for public and semi-public purposes;
14. Protected areas;
15. Resources within ancestral domains; and
16. Others of similar character. (Agcaoili, Property Registration Decree and Related Laws: Land
Titles and Deeds, 2006)

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 F. Dealings with Unregistered Land

236. What are untitled lands?

These are private lands that are not registered in the Register of Deeds and not covered by the
Torrens System. It refers to bare ownership of land or ownership that has not been adjudicated
either judicially or administratively and registered as Torrens title under P.D. 1529. (Noblejas,
Registration of Land Titles and Deeds, 2007)

G. Assurance Fund

1. Action of compensation from funds

237. What is an assurance fund?

It is created for the purpose of paying any damages which may result from an improper or illegal
registration. All the people of the Philippine Archipelago may be taxed for the purpose of paying
these damages if the "assurance fund" is not sufficient. (Loewenstein vs. Page, G.R. No. L-5599,
March 22, 1910)

2. Limitation of action

238. What is the prescriptive period in filing an action for compensation against the
Assurance Fund?

Sec. 102 of PD 1529 sets a six (6)-year prescriptive period “from the time the right to bring such
action first occurred” within which one may proceed to file an action for compensation against the
Assurance Fund. In actions for compensation against the Assurance Fund grounded on fraud,
registration of the innocent purchaser for value’s title should only be considered as a condition sine
qua non to file such an action and not as a form of constructive notice for the purpose of reckoning
prescription. The constructive notice rule on registration should not be made to apply to title holders
who have been unjustly deprived of their land without their negligence. As such, prescription, for
purposes of determining the right to bring an action against the Assurance Fund, should be
reckoned from the moment the innocent purchaser for value registers his or her title and upon
actual knowledge thereof of the original title holder/claimant. The registration of the innocent
purchaser for value’s title is a prerequisite for a claim against the Assurance Fund on the ground
of fraud to proceed, while actual knowledge of the registration is tantamount to the discovery of
the fraud. (Sps. Stilianopoulos vs. Register of Deeds for Legazpi City, supra.)

H. Cadastral System of Registration (Act No. 2259, as amended)

J. Registration Through Administrative Proceedings (C.A. 141, as amended)

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

Proceedings Who may apply?

1. For Homestead Settlement
Any citizen of the Philippines over the age of 18
years, or the head of a family, who does not own
more than twelve (12) hectares of land in the
Philippines or has not had the benefit of any
gratuitous allotment of more than twelve (12)
hectares of land since the occupation of the
Philippines by the United States, may enter a

75
 homestead of not exceeding twenty-four
hectares of agricultural land of the public domain.
2. By sale Any citizen of lawful age of the Philippines, and
any such citizen who is a head of a family. They
may purchase any tract of public agricultural land
disposable under this Act, not to exceed twelve
(12) hectares.
3. By lease (a) Any citizen of lawful age of the Philippines
(b) Any corporation or association of which at
least sixty per centum (60%) of the capital
stock or of any interest in said capital stock
belongs wholly to citizens of the
Philippines, and which is organized and
constituted under the laws of the
Philippines.
4. By Confirmation of Imperfect or (a) Those who, prior to the transfer of
Incomplete Titles sovereignty from Spain to the United
States, have applied for the purchase,
A. Judicial Legalization composition or other form of grant of lands
of the public domain under the laws and
royal decrees then in force and have
instituted and prosecuted the proceedings
in connection therewith, but have with or
without default upon their part, or for any
other cause, not received title therefore, if
such applicants or grantees and their heirs
have occupied and cultivated said lands
continuously since the filing of their
applications.
(b) Those who, by themselves or through their
predecessors in interest, have been in
open, continuous, exclusive, and notorious
possession and occupation of agricultural
lands of the public domain, under a bona
fide claim of acquisition or ownership, for
at least thirty (30) years immediately
preceding the filing of the application for
confirmation of title except when
prevented by war or force majeure. These
shall be conclusively presumed to have
performed all the conditions essential to a
Government grand and shall be entitled to
a certificate of title.
(c) Members of the national cultural minorities
who by themselves or through their
predecessors-in-interest have been in
open, continuous, exclusive and notorious
public domain suitable to agriculture,
whether disposable or not, under a bona
fide claim of ownership for at least thirty
(30) years shall be entitled to the rights
granted in sub-Sec. (b) hereof.

76
 5. By Administrative Legalization
(b) A member of the national cultural
6. Socialized Housing
(a) Any natural-born citizen of the Philippines
who is not the owner of more than twelve
(12) hectares and who since July 4, 1926
or prior thereto, has continuously occupied
and cultivated, either by himself or through
his predecessors-in-interest, a tract or
tracts of agricultural public lands subject to
disposition, or who shall have paid the real
estate tax thereon while the same has not
been occupied by any person shall be
entitled to have a free patent issued to him
for such tract or tracts of such land not to
exceed twelve (12) hectares.
minorities who has continuously occupied
and cultivated, either by himself or through
his predecessors-in-interest, a tract or
tracts of land, whether disposable or not
since July 4, 1955. Provided, that at the
time he files his free patent application he
is not the owner of any real property
secured or disposable under this provision
of the Public Land Law.
1. Must be a Filipino citizen;
2. Must be an underprivileged citizen;
3. Must not own any real property;
4. Must not be a professional squatter.
(Sec. 16. R.A. No. 7292)

K. Reconstitution of Titles

240. What are the requisites for the issuance of an order of reconstitution?

(a) that the certificate of title had been lost or destroyed;

(b) that the documents presented by petitioner are sufficient and proper to warrant reconstitution
of the lost or destroyed certificate of title;
(c) that the petitioner is the registered owner of the property or had an interest therein;
(d) that the certificate of title was in force at the time it was lost or destroyed; and
(e) that the description, area and boundaries of the property are substantially the same as those
contained in the lost or destroyed certificate of title. (Republic vs. Catarroja, G.R. No. 171774,
February 12, 2010)

77
 I. PRACTICAL EXERCISES

A. DEMAND AND AUTHORIZATION LETTERS

Sample form: DEMAND LETTER

(Date)

(Addressee)
(Address)

FINAL DEMAND TO PAY

Dear, Mr./Ms. ___________

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

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

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

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

Respectfully,

ATTY. (Name of Counsel)

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

78
Sample Form: LETTER OF AUTHORIZATION

(Date)

(Addressee)
(Address)

AUTHORIZATION

Dear, Mr./Ms. ___________

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

(Name of Authorizing Person)

or

(Date)

To Whom It May Concern:

I, (Name), give full authorization to (Name of Representative) receive, sign, and transact any
communication with any representative of (Name or Type of courier) in connection with (State personal
circumstance/matters, as applicable) .

Thank you very much.

Sincerely,

(Signature over Complete Name)

79
Sample Form: SPECIAL POWER OF ATTORNEY

REPUBLIC OF THE PHILIPPINES )

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

SPECIAL POWER OF ATTORNEY

THIS SPECIAL POWER OF ATTORNEY IS ENTERED BETWEEN:

(Name of Principal), the Principal,

And

(Name of Agent), the Agent.

(State personal circumstances: Name, Age, Address, Citizenship ), do hereby appoint, (Name of Attorney-
in-fact and state personal circumstances) to be my true and lawful attorney-in-fact, to do and perform the
following acts:

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

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

(Place) and (Date)

CONFORME:

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

Principal Attorney-in-fact

SIGNED IN THE PRESENCE OF:

(Name of Witness) (Name of Witness)

[ACKNOWLEDGMENT]

80
B. SIMPLE CONTRACTS

Sample Form: CONTRACT OF LEASE

CONTRACT OF LEASE

THIS CONTRACT OF LEASE IS ENTERED INTO BETWEEN:

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

And

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

WITNESSETH THAT:

The LESSOR sub-leases a (State kind the property being leased), in favor of the LESSEE, for (State purpose
of lease), within (Period of lease), commencing on (Date), for and in consideration of the monthly rental in
the amount of (Amount in words and in figures) Philippine Currency;

(State other circumstances pertaining to the lease: Date of payment, Amount of payment, Place and Time
of payment, and Tender of Payment);

(Place) and (Date)

(Name of Lessor) (Name of Lessee)

Lessor Lessee

SIGNED IN THE PRESENCE OF:

(Name of Witness) (Name of Witness)

Witness Witness

[ACKNOWLEDGMENT]

81
Sample Form: DEED OF ABSOLUTE SALE

DEED OF ABSOLUTE SALE

THIS DEED OF ABSOLUTE SALE IS MADE AND EXECUTED BY:

(State personal circumstances: Name, Age, Address, Citizenship), herein represented by their
Attorney in fact,(Name of Attorney-in-fact and state personal circumstances), respectively, are hereinafter
referred to collectively as SELLER;

And

(State personal circumstances: Name, Age, Address, Citizenship) and herein represented by (State
personal circumstances of representative: Name, Age, Address, Citizenship ), hereinafter referred as the
BUYER;

WITNESSETH THAT:

WHEREAS, SELLER is the absolute and registered owner in fee simple of a parcel of land with TCT
No. ______, registered under the name of (Name) , for the Registry of Deeds of (Place) , containing a total
area of ( Description of the parcel of land) , more or less;

WHEREAS, SELLER offered to sell said lot and the BUYER is willing to buy and has accepted the
offer;

NOW therefore, for and in consideration of the foregoing premises, the parties hereby agree and
the stipulate the following:

1. In consideration of the payment by the BUYER of the amount of (Amount in PHP) Philippine
currency, receipt of which is hereby acknowledged by the SELLER, and SELLER hereby SELLS, CEDES,
TRANSFERS and CONVEYS by way of absolute sale the above-mentioned improvement unto the BUYER,
their heirs, assigns and successors-in-interest free from all liens and encumbrances.

(State here the stipulation made by the parties)

(Date), (Place).

(Name of Seller) (Name of Seller’s Spouse)

Seller Marital Consent (if necessary)

(Name of Buyer)
Buyer

SIGNED IN THE PRESENCE OF:

(Name of Witness) (Name of Witness)

Witness Witness
[ACKNOWLEDGMENT]

82
Sample Form: DEED OF SALE OF PERSONAL PROPERTY

DEED OF SALE OF PERSONAL PROPERTY

KNOW ALL MEN BY THESE PRESENTS:

I, (State personal circumstances: Name, Age, Address, Citizenship), hereinafter known as

VENDOR;
And

(State personal circumstances: Name, Age, Address, Citizenship), hereinafter known as VENDEE;

WITNESSETH THAT:

1. The VENDOR is the absolute owner of (State description of the property owned)

2. That for and in consideration of the sum of (Amount of consideration), receipt of which I hereby
acknowledge, I hereby SELL, TRANSFER and CONVEY to the VENDEE, his heirs, assigns and
transferees, the aforesaid described automobile vehicle, free from all liens and encumbrances;

3. That the VENDEE undertakes to pay all taxes, registration and transfer fees.

(Date), (Place).

(Name of Vendor) (Name of Vendee)

Vendor Vendee

SIGNED IN THE PRESENCE OF:

(Name of Witness) (Name of Witness)

Witness Witness

[ACKNOWLEDGMENT]

83
Sample Form: ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES )

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

BEFORE ME, this ____ day of ____, _____ in the City of _________, personally appeared:

Name Competent Evidence of Identity Place and Date of Issue

_______________ ___________________ ___________________
_______________ ___________________ ___________________

known to me to be the same persons who executed the foregoing instrument, and acknowledged that
the same are their free act and deed.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal on the (Date
and Place).

NOTARY PUBLIC
Commission Expires on _______
Commission No.___: (Place) (Date)
Roll No. ____;
IBP No. ____;
PTR No. ____;
MCLE No.____.
(Office Address)
(Contact Details)

Doc. No. _____:

Page No. _____;
Book No. _____;
Series of _____.

84
C. CIVIL COMPLAINT

Sample Form: COMPLAINT

REPUBLIC OF THE PHILIPPINES

_____________ JUDICIAL REGION
_________TRIAL COURT
_________ CITY, BRANCH _______

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

FOR: _______________
-versus-

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

COMPLAINT

Plaintiff, through counsel, states that,

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

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

PRAYER

Plaintiff respectfully prays that:

1. (State reliefs prayed for).

Other equitable reliefs as the court sees fit are likewise prayed for.
(Place), (Date)

(signed)
Atty. (Name of Counsel)
Roll No.: _____;
IBP No.:_____;
PTR No.: _____;
MCLE No.: _____;
Telephone No.:____;
Email Address:____.

85
REPUBLIC OF THE PHILIPPINES)
CITY OF (Name of City / Municipality ) S.S

VERIFICATION AND CERTIFICATION AGAINST FORUM SHOPPING

I, (State personal circumstances: Name, Age, Address, Citizenship of Plaintiff) respectfully states
that:

1. I am the plaintiff in the above-entitled case;

2. I have caused the preparation of the foregoing complaint and read the pleading;
3. The allegations in the pleading are true and correct based on his personal knowledge, or based on
authentic documents;
4. The pleading is not filed to harass, cause unnecessary delay, or needlessly increase the cost of
litigation;
5. The factual allegations therein have evidentiary support or, if specifically so identified, will likewise
have evidentiary support after a reasonable opportunity for discovery;
6. I have not commenced any action or filed any claim involving the same issue in any court, tribunal,
or quasi-judicial agency and, to the best of my knowledge, no such other action or claim is pending
therein;
7. If there is such other pending action or claim, a complete statement of the present status thereof;
and
8. If I should thereafter learn that the same or similar action or claim has been filed or is pending, I
shall report that fact within five (5) calendar days therefrom to the court wherein aforesaid
complaint or initiatory pleading has been filed.

IN WITNESS WHEREOF, I hereunto affix my signature this (Date and Place where signed).

(signed)
(Name of Affiant)
Affiant

[JURAT]

86
Sample Form: CERTIFICATE OF NON-FORUM SHOPPING

REPUBLIC OF THE PHILIPPINES)

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

CERTIFICATION OF NON-FORUM SHOPPING

I, I, (State personal circumstances: Name, Age, Address, Citizenship of Affiant ), after having been sworn
in accordance with law, depose and state that:

1. I am the petitioner (Respondent/Plaintiff/Defendant) in the above-entitled case and have

caused the preparation of the foregoing petition (complaint/pleading);

2. I have not commenced any action or filed any claim involving the same issues in any court,
tribunal or quasi-judicial agency and , to the best of my knowledge, no such other action or claim
is pending therein;

3. If there is such other pending action or claim, I will furnish this Honorable Court with a
complete statement of the present status thereof; and

4. If I should thereafter learn that the same or similar action or claim has been filed or is
pending, I shall report that fact within five (5) days therefrom to this Honorable Court wherein
my aforesaid petition (complaint/pleading) has been filed.

IN WITNESS WHEREOF, I hereunto affix my signature this (Date and Place where signed).

(signed)
(Name of Affiant)
Affiant

[JURAT]

87
Sample Form: JURAT

JURAT

SWORN and SUBSCRIBED to before me this (Date) in (Place), with the affiant, (Name of Plaintiff),
presenting his (Type of Identification) with (I.D. Number) issued on (Date of Issuance at (Place / Office
where I.D. was issued) as proof of his identity.

(signed)
NOTARY PUBLIC
Commission Expires on (place)(date)
Commission No. ____:
Roll No.: ____;
IBP No.: ____;
PTR No.: ____;
MCLE No.: ___.
(Office Address)
(Contact Details)

Doc. No. _____;

Page No. _____;
Book No. _____;
Series of _____.

88