Professional Documents
Culture Documents
Last Minute Tips (October 2023)
Last Minute Tips (October 2023)
OBLIGATIONS
1. If the debtor is in delay in delivering a specific thing which subsequently got lost due to fortuitous event, the debtor shall be
liable for the loss.
2. In case a passenger is injured due to the negligence of the taxi driver, the passenger may sue the taxi driver based on quasi-
delict. He may include the taxi operator in the suit based on the employer’s solidary liability for the acts of its employee.
3. In case a passenger is injured due to the negligence of the taxi driver, the passenger may sue the taxi operator based on
breach of contract of carriage. He may not include the taxi driver since a contract of carriage is only between the taxi
operator and the passenger.
4. In case a passenger is injured due to the negligence of the taxi driver, the passenger may sue the taxi driver based on delict.
He cannot include the taxi operator in the suit since only the actor can be charged criminally. But, the taxi operator is
subsidiarily liable in case the taxi driver is convicted and insolvent.
5. The diligence required of common carriers is extraordinary diligence, which is greater than the diligence of a good father of
a family.
6. While solidary debtors may be compelled to pay the share of an insolvent co-debtor, joint debtors may not be compelled to
do so.
7. In alternative obligations, the person entitled to choose cannot choose the things lost due to fortuitous event or due to the
fault of the one entitled to choose.
8. In alternative obligations, once the choice is made, the obligation becomes pure and demandable.
9. In facultative obligations, whatever happens to the thing substituted after substitution does not affect the substituting
obligation.
10. In facultative obligations, the choice to substitute always belong to the debtor.
11. Solidarity does not mean indivisibility. Neither does indivisibility mean solidarity.
12. In case two debtors are obliged to deliver an indivisible thing (e.g. car), if one refuses to perform, the obligation to deliver
shall be converted into an obligation to pay the value of the undelivered car where only the refusing debtor is liable for
damages and the debtor willing to perform paying for his share in the obligation (without damages) had it been properly
performed.
13. In dacion en pago, if the property given in exchange is valued less than the monetary obligation, the extinguishment shall
only be partial and up to the extent of the value of the property, unless the conduct of the parties or a stipulation provides
that the exchange is in consideration of the total extinguishment of the obligation.
14. In dacion en pago, if the property given in exchange is lost by the creditor through eviction, the original obligation shall be
revived, and the accessory obligation shall remain extinguished.
15. In payment by cession, ownership over the debtor’s property is not transferred to the creditors. The extinguishment is only
up to the extent of the proceeds of the sale of ceded properties.
16. Compensation is only available when both debts are in money or to deliver consumable things.
17. A third person who pays the debt of a debtor without the debtor’s knowledge and consent, cannot be subrogated to the
rights of the creditor and is only entitled to reimbursement up to the extent beneficial to the debtor. This strict rule ensures
that third persons are more careful in paying debts of other persons and protecting debtors from being liable for more than
what they actually owe.
18. Remission, being gratuitous in nature, must observe the formalities required of donations.
19. If a father loans his son an amount and donates the same credit to his son, the obligation to pay the loan is extinguished by
merger or confusion. Same effect happens if the father dies and leaves the son as his only heir.
20. When a debtor promised to deliver a determinate thing to each of two persons, the debtor will be liable to the creditors in
case of loss of said thing even if it is due to fortuitous event.
CONTRACTS
21. Love and affection, though not valuable consideration, is still a consideration that can complete the requisites of a valid
contract like donation.
22. Obligatoriness refers to the force and effect of contract as law between the contracting parties.
23. Relativity of contracts refers to the binding effect of a contract to its contracting parties, their heirs, and assigns.
24. Mutuality of contracts refers to the equality of standing of contracting parties in a contract.
25. Autonomy of contracts refers to the freedom of the contracting parties to agree to any term or condition provided it is not
contrary to law, public policy, good morals, and good customs.
26. The Philippines follows the Cognition Theory (when the acceptance comes to the knowledge of the offeror) when it comes
to perfection of contracts.
27. Before an offer is accepted, it may be withdrawn by the offeror, except if there is consideration given in order for the
offeree to decide on the offer.
28. When an offeror is convicted for a crime which is punishable by imprisonment of at least reclusion temporal, the offer is
considered withdrawn because civil interdiction is deemed imposed with the prison sentence.
29. Stipulations in favor of third persons only bind the third persons upon their acceptance. Prior to said acceptance, contracting
parties may withdraw said stipulations.
30. In case a minor enters into a contract, the other contracting party, who is capacitated, cannot seek the annulment of the
voidable contract.
31. If the lesion or damage suffered by a minor, ward, or absentee in a contract entered into by the guardian or representative is
exactly 25% of the property, the contract is valid. It must be more than 25% to be rescissible.
32. An action for rescission is a subsidiary remedy or a remedy of last resort.
33. Unenforceable contracts may be ratified by partial performance no matter how small since such performance is deemed an
admission to the existence of said contract.
SALES
41. A sale of future inheritance is void.
42. An oral sale of large cattle is void.
43. A deed of sale where the consideration had not in fact been paid is a void contract of sale.
44. Inadequacy of price does not invalidate a sale unless such inadequacy is so gross that it is unconscionable or shocking to the
senses of men or to the judicial sensibilities of the court.
45. While a contract of sale is void since it has no valuable consideration, it may be some other valid contract like a donation.
46. Failure to pay the consideration is different from lack of consideration. The first only results to breach of contract of sale,
while the latter voids a contract of sale.
47. In the absence of a principal contract of loan, no contract of sale can be construed as an equitable mortgage.
48. A contract of sale of necessaries entered into by a minor is valid.
49. Married couples who are legally separated may enter into a contract of sale.
50. An unpaid seller can no longer exercise his or her right of stoppage in transitu if the goods have already been received by
the buyer or its agent.
51. When an unpaid seller exercises his or her right of resale, the buyer shall be liable for any deficiency. But in case of profit,
it shall inure to the benefit of the unpaid seller.
52. In case of foreclosure of chattel mortgage over a personal property bought in installments, recovery of deficiency is not
allowed. In case of excess, it shall belong to the mortgagor unless there is a stipulation to the contrary.
53. If the redemption period is “after 10 years from date of sale”, it is a void stipulation and considered as if not written. Hence,
the period shall be 4 years.
54. The right of redemption of a co-owner defeats the pre-emptive right of an adjacent landowner.
CREDIT TRANSACTIONS
55. A contract of pledge is generally indivisible, hence partial payment does not lead to proportionate extinguishment of the
pledge.
56. In legal pledge, the excess in the sale proceeds shall belong to the legal pledgor and the legal pledgee shall be entitled to
recover in case of deficiency.
57. While a real estate mortgage requires registration in order to be valid, an unregistered real estate mortgage is binding
between the contracting parties.
58. In judicial foreclosure of real estate mortgage, there is right of redemption and equity of redemption.
59. In chattel mortgage, there is equity of redemption which must be exercised before the foreclosure sale.
60. A chattel mortgage over a house is valid.
BP 22
61. A check that was dishonored due to closed account is also a check dishonored due to insufficient of funds. If a check was
dishonored due to a stop payment order, the drawee-bank is obliged to explicitly state in the notice of dishonor whether or
not there are sufficient funds had there been no stop payment order.
62. The making, drawing and issuance of a check payment of which is refused by the drawee because of insufficient funds in or
credit with such bank, when presented within ninety (90) days from the date of the check, shall be prima facie evidence of
knowledge of such insufficiency of funds or credit unless such maker or drawer pays the holder thereof the amount due
thereon, or makes arrangements for payment in full by the drawee of such check within (5) banking days after receiving
notice that such check has not been paid by the drawee.
63. In a sale by approval, the crimes committed when upon the issuance of check for payment subsequently bounces, are BP 22
and estafa
64. Simultaneous filing of BP 22 and estafa cases does not amount to double jeopardy.
CONSUMER PROTECTION
65. Products must not be sold at higher prices than those stated in the price tag.
66. The Lemon Law covers only brand-new motor vehicles.
67. The Lemon Law specifically excludes motorcycles, delivery trucks, dump trucks, buses, lawn mowers, heavy equipment,
and farm equipment.
68. The Lemon Law covers those irreparable nonconformities which substantially impair the use, value, or safety of these new
vehicles and prevent such motor vehicles from conforming to the manufacturers’ or distributors’ standards or specifications.
CORPORATIONS
113. A corporation is said to be have a strong juridical personality because of its inherent attribute that it has the right of
succession.
114. The piercing of the corporate veil is used to reach the persons forming it, instead of reaching the corporations formed
by persons liable. This principle also applies to One Person Corporations (OPCs).
115. A corporation has the constitutional rights to due process, equal protection, and against unreasonable search and
seizure.
116. A corporation sole has no nationality.
117. The Roman Catholic Church is a corporation by prescription.
118. An ultra vires act is not necessarily an illegal act, but an illegal act is always an ultra vires act.
119. If a corporation aims to amend its articles of incorporation to change its corporate name, the dissenting stockholders
cannot exercise their appraisal right.
120. Incorporators of a corporation may be natural or juridical persons.
121. There is no minimum paid up capital for corporations.
122. Authorized capital stock >= issued shares >= outstanding shares
123. In case of increase of authorized capital, the 25%-25% rule must be based on the net increase.
124. A postdated check cannot be considered as a valid consideration for shares of stocks.
125. For services to be a valid consideration for shares of stocks, it must have already been rendered.
126. Advances for future subscription are not covered by the trust fund doctrine. They cannot be used to pay the creditors of
the corporation.
127. Foreigners can incorporate a corporation.
128. In the absence of any denial of voting right in the articles of incorporation, holders of preferred shares and redeemable
shares are entitled to vote in the similar manner as the holders of common shares.
129. All matters where a stockholder’s right of appraisal is available, require 2/3 vote of the stockholders holding
outstanding capital stock.
130. In matters which has important or significant consequences to the corporation and its stockholders, holders of non-
voting shares are entitled to vote.
131. Directors and trustees can never vote by proxy in directors’ or trustees’ meeting.
132. A proxy form can be valid for just one meeting or for a period not exceeding 5 years.
133. A voting trust agreement can be valid for more than 5 years if it is executed as required in a loan agreement, but it shall
be automatically terminated upon full payment of said loan.
INSURANCE
167. An additional element of an insurance contract is insurable interest.
168. Perfection of insurance contract follows the Cognition Theory.
169. A beneficiary need not have an insurable interest.
170. The insurer in a life insurance contract shall be liable in case of suicide only when it is committed after the policy has
been in force for a period of two (2) years from the date of its issue or of its last reinstatement, unless the policy provides a
shorter period.
171. If the insurer granted a credit term for the payment of the premium, nonpayment of premiums will not void the
insurance contract.
172. The insurer is given two (2) years – from the effectivity of a life insurance contract and while the insured is alive – to
discover or prove that the policy is void from the beginning or is rescindable by reason of fraud, concealment or
misrepresentation of the insured or his agent.
173. A concealment whether intentional or unintentional entitles the injured party to rescind a contract of insurance.
COOPERATIVES
174. A cooperative may be formed by at least 15 natural persons.
175. No foreigner can form a cooperative. Only Filipinos can.
176. A cooperative, similar to a corporation, has limited liability and a separate personality other than the persons
composing it.
177. The minimum paid up capital for single purpose cooperatives is P15,000. For multipurpose cooperatives, it is
P100,000.
178. The par value of shares in a cooperative cannot be less than P100, but not more than P1,000.
179. A cooperative may issue preferred shares if provided in the bylaws and it cannot exceed 25% of its total authorized
capital stock.
180. A member cannot own more than 10% of the capital stock in a cooperative.
181. If a member inherits capital stock from a co-member, he can only receive the portion that will not make him exceed
10% of the capital stock. The excess has to be acquired by the cooperative by paying the fair value of the excess shares.
182. The quorum required for the general assembly meeting of cooperatives is generally at least 25%.
183. The quorum required for the general assembly meeting of electric cooperatives is at least 5%.
184. The quorum required for the general assembly meeting of cooperative banks is at least majority.
185. A laboratory cooperative does not have juridical personality.
186. When a director is removed, he or she may be replaced by the remaining directors still constituting majority.
187. The term of directors in a cooperative is 2 years.
188. If there is no fixed date of the cooperative’s general assembly regular meeting, it shall be held within 90 days from the
close of its fiscal year.
189. Proxy voting by members of a cooperative is only prohibited in primary cooperatives.
190. In a cooperative with 200 members, the presence of 50 (25%) constitutes a quorum, and 38 (75%) members of those
present may remove a director after observance of due process. The same goes for ratification of contracts with self-dealing
and interlocking directors, and mergers.
191. A cooperative’s articles of cooperation or bylaws may only be amended by 2/3 vote of ALL its voting members. The
vote of the board of directors is NOT necessary.
192. The prior written notice of special board meetings in cooperatives is at least ONE WEEK.
193. When a cooperative is dissolved and liquidated, the assets distributable to an unknown member shall be given to the
federation or union to which the cooperative is affiliated with.
PDIC
194. PDIC shall commence the determination of insured deposits due the depositors of a closed bank upon its actual
takeover of the closed bank.
195. When a depositor has both an individual account and a joint account, the maximum proceeds he can get from PDIC for
his or her insured deposits is P1,000,000.
196. If the account is held jointly by two or more natural persons, or by two or more juridical persons or entities, the
maximum insured deposit shall be divided into as many equal shares as there are individuals, juridical persons or entities,
unless a different sharing is stipulated in the document of deposit.
197. The depositor shall retain his or her claim for any uninsured portion of his or her deposit, which legal preference shall
be the same as that of the subrogated claim of PDIC for its payment of insured deposits.
AMLA
205. The Chairman of the Anti-Money Laundering Council is the BSP Governor.
206. As a general rule, the threshold for covered transactions is in excess of P500,000.00.
207. In case of casinos, the threshold for covered transactions is in excess of P5,000,000.00.
208. In case of jewelry dealers, the threshold for covered transactions is in excess of P1,000,000.00.
209. In case of real estate developers or brokers, the threshold for covered transactions is in excess of P7,500,000.00.
210. Only the Court of Appeals can issue a freeze order.
211. Under the Safe Harbor Rule, no administrative, criminal, or civil proceedings, shall lie against any person for having
made a transaction report in the regular performance of his duties and in good faith, whether or not such results in any
criminal prosecution under Philippine laws.
212. Should a transaction be determined to be both a covered and a suspicious transaction, it shall be reported as a
suspicious transaction.
213. If there is money laundering connected to a commission of a crime, the offender may be prosecuted for both crimes.
214. The Regional Trial Court (RTC) has jurisdiction over all cases of money laundering, but if the crime of money
laundering is committed by public officers and private person who are in conspiracy with such public officers, the
Sandiganbayan shall have jurisdiction.
215. All records of all transactions of covered institutions shall be maintained and safely stored for 5 years from the date of
transactions.
216. No prior criminal charge, pendency of a case, or conviction for an unlawful activity or ML offense is necessary for the
commencement or the resolution of a petition for civil forfeiture.
217. No asset shall be attached or forfeited to the prejudice of a candidate for an electoral office during an election period.
218. Lawyers and accountants who are: (a) authorized to practice their profession in the Philippines; and (b) engaged as
independent legal or accounting professionals, in relation to information concerning their clients, or where disclosure of
information would compromise client confidences or the attorney-client relationship are not required to file CTRs.
219. Lawyers and accountants, however, are not precluded from submitting STRs to the AMLC with regard to any
transaction of their clients that is in any way related to ML/TF or related unlawful activity that is about to be committed, is
being or has been committed.
INTELLECTUAL PROPERTY
220. In the case of a work commissioned by a person other than an employer of the author and who pays for it and the work
is made in pursuance of the commission, the person who so commissioned the work shall have ownership of the work, but
the copyright thereto shall remain with the creator, unless there is a written stipulation to the contrary.
221. No protection related to copyright shall extend to any idea, procedure, system, method or operation, concept, principle,
discovery or mere data as such, even if they are expressed, explained, illustrated or embodied in a work; news of the day
and other miscellaneous facts having the character of mere items of press information; or any official text of a legislative,
administrative or legal nature, as well as any official translation thereof.
222. Fair use of a copyrighted work for criticism, comment, news reporting, teaching including multiple copies for
classroom use scholarship, research and similar purposes is not an infringement of copyright.
223. If you posted your selfie on Instagram today, it shall be protected for 50 years commencing on January 1, 2024.
224. When someone wrote and sent you a letter, the letter belongs to you, but you cannot disclose the contents of the letter
without the consent of the sender.
225. The term of a patent is 20 years from the date of application and non-renewable.
226. Under the Doctrine of Equivalents, an infringement also takes place when a device appropriates a prior invention by
incorporating its innovative concept and, although with some modification and change, performs substantially the same
function in substantially the same way to achieve substantially the same result.
227. If two or more persons have made the invention separately and independently of each other the right to the patent shall
belong to the person who first filed an application for such invention.
LABOR LAW
252. Where there are two (2) successive regular holidays, like Maundy Thursday and Good Friday, an employee may not be
paid for both holidays if he/she absents himself/herself from work on the day immediately preceding the first holiday,
unless he/she works on the first holiday, in which case he/she is entitled to his/her holiday pay on the second holiday.
253. Seasonal workers may not be paid the required holiday pay during off-season when they are not at work.
254. The “no work, no pay” principle applies during special days and on such other special days as may be proclaimed by
the President or by Congress.
255. Workers who are not required or permitted to work on special days are not entitled to any compensation.
256. The unused service incentive leave is commutable to its money equivalent at the end of the year.
257. The maternity leave benefit applies to all covered female employees, regardless of civil status, employment status, and
the legitimacy of her child.
Salamat po sa lahat ng mga taong nagmamahal at patuloy na sumusuporta sa aming lahat—sa aming mga kapamilya,
kaibigan, guro, kaklase, kasama na rin ng mga taong hindi namin kakilala ngunit nagbibigay sa amin ng karagdagang pag-asa
upang mapagtagumpayan ang nalalapit na pagsusulit. Gaano man kami katapang at kahanda, batid Ninyo kung ano ang tunay
naming nararamdaman sa aming mga puso. Nawa’y tanggalin ‘Nyo lahat ng pag-aagam-agam at pagdududa sa aming puso at
isipan. Muli Ninyong ipaalala sa amin ang walang katapusang pagmamahal na matagal na Ninyong ipinamalas at
ipinaramdam sa amin. Hindi kami aabot nang ganito kalayo kung wala kaming kakayahan upang tapusin ang kahuli-huling
hakbang patungo sa katuparan ng aming mga pangarap. Sa mga darating na araw, ipanatag Ninyo nawa ang aming puso at
isipan upang buo naming maalala lahat ng aming inaral. Iniaalay po naming lahat ang Inyong ipinangakong tagumpay para sa
kapurian ng Inyong Pangalan.
Lahat ng ito ay aming buong pusong ipinapanalangin sa ngalan ng Maykapal at tanging Tagapagligtas.
AMEN.