Civil Code of The Philippines

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CIVIL CODE OF THE PHILIPPINES : FULL TEXT : CHAN ROBLES VIRTUAL LAW LIBRARY
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This web page contains the Full Text of Republic Act No. 386 June 18, 1949
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The Civil Code of the Philippines

AN ACT TO ORDAIN AND INSTITUTE THE CIVIL CODE OF THE PHILIPPINES
PRELIMINARY TITLE CHAPTER I EFFECT AND APPLICATION OF LAWS Art icle 1. This Act shall be known as t he "Civil Code of the Philippines." (n ) Art . 2. Laws shall t ake effect aft er fift een day s following t he complet ion of t heir publicat ion in t he Official Gazet t e, unless it is ot herwise provided. This Code shall t ake effect one y ear aft er such publicat ion. (1 a ) Art . 3. Ignorance of t he law excuses no one from compliance t herewit h. (2) Art . 4. Laws shall have no ret roact ive effect , unless t he cont rary is provided. (3) Art . 5. Act s execut ed against t he provisions of mandat ory or prohibit ory laws shall be void, except when t he law it self aut horizes t heir validit y . (4a ) Art . 6. Right s may be waived, unless t he waiver is cont rary t o law, public order, public policy , morals, or good cust oms, or prejudicial t o a t hird person wit h a right recognized by law. (4a ) Art . 7 . Laws are repealed only by subsequent ones, and t heir violat ion or non-observance shall not be excused by disuse, or cust om or pract ice t o t he cont rary . When t he court s declared a law t o be inconsist ent wit h t he Const it ut ion, t he former shall be void and t he lat t er shall govern. Administ rat ive or execut ive act s, orders and regulat ions shall be valid only when t hey are not cont rary t o t he laws or t he Const it ut ion. (5a ) Art . 8. Judicial decisions apply ing or int erpret ing t he laws or t he Const it ut ion shall form a part of t he legal sy st em of t he Philippines. (n ) Art . 9. No judge or court shall decline t o render judgment by reason of t he silence, obscurit y or insufficiency of t he laws. (6)
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Art . 10. In case of doubt in t he int erpret at ion or applicat ion of laws, it is presumed t hat t he lawmaking body int ended right and just ice t o prevail. (n ) Art . 11. Cust oms which are cont rary t o law, public order or public policy shall not be count enanced. (n ) Art . 12. A cust om must be proved as a fact , according t o t he rules of evidence. (n ) Art . 13. When t he laws speak of y ears, mont hs, day s or night s, it shall be underst ood t hat y ears are of t hree hundred sixt y -five day s each; mont hs, of t hirt y day s; day s, of t went y -four hours; and night s from sunset t o sunrise. If mont hs are designat ed by t heir name, t hey shall be comput ed by t he number of day s which t hey respect ively have. In comput ing a period, t he first day shall be excluded, and t he last day included. (7a ) Art . 14. Penal laws and t hose of public securit y and safet y shall be obligat ory upon all who live or sojourn in t he Philippine t errit ory , subject t o t he principles of public int ernat ional law and t o t reat y st ipulat ions. (8a ) Art . 15. Laws relat ing t o family right s and dut ies, or t o t he st at us, condit ion and legal capacit y of persons are binding upon cit izens of t he Philippines, even t hough living abroad. (9a ) Art . 16. Real propert y as well as personal propert y is subject t o t he law of t he count ry where it is st ipulat ed. However, int est at e and t est ament ary successions, bot h wit h respect t o t he order of succession and t o t he amount of successional right s and t o t he int rinsic validit y of t est ament ary provisions, shall be regulat ed by t he nat ional law of t he person whose succession is under considerat ion, what ever may be t he nat ure of t he propert y and regardless of t he count ry wherein said propert y may be found. (1 0a ) Art . 17 . The forms and solemnit ies of cont ract s, wills, and ot her public inst rument s shall be governed by t he laws of t he count ry in which t hey are execut ed. When t he act s referred t o are execut ed before t he diplomat ic or consular officials of t he Republic of t he Philippines in a foreign count ry , t he solemnit ies est ablished by Philippine laws shall be observed in t heir execut ion. Prohibit ive laws concerning persons, t heir act s or propert y , and t hose which have, for t heir object , public order, public policy and good cust oms shall not be rendered ineffect ive by laws or judgment s promulgat ed, or by det erminat ions or convent ions agreed upon in a foreign count ry . (1 1 a ) Art . 18. In mat t ers which are governed by t he Code of Commerce and special laws, t heir deficiency shall be supplied by t he provisions of t his Code. (1 6a ) CHAPTER 2 HUMAN RELATIONS (n ) Art . 19. Every person must , in t he exercise of his right s and in t he performance of his dut ies, act wit h just ice, give every one his due, and observe honest y and good fait h. Art . 20. Every person who, cont rary t o law, wilfully or negligent ly causes damage t o anot her, shall indemnify t he lat t er for t he same. Art . 21. Any person who wilfully causes loss or injury t o anot her in a manner t hat is cont rary t o morals, good cust oms or public policy shall compensat e t he lat t er for t he damage. Art . 22. Every person who t hrough an act of performance by anot her, or any ot her means, acquires or comes int o possession of somet hing at t he expense of t he lat t er wit hout just or legal ground, shall ret urn t he same t o him. Art . 23. Even when an act or event causing damage t o anot her's propert y was not due t o t he fault or negligence of t he defendant , t he lat t er shall be liable for indemnit y if t hrough t he act or event he was benefit ed. Art . 24. In all cont ract ual, propert y or ot her relat ions, when one of t he part ies is at a disadvant age on account of his moral dependence, ignorance, indigence, ment al weakness, t ender age or ot her handicap, t he court s must be vigilant for his prot ect ion. Art . 25. Thought less ext ravagance in expenses for pleasure or display during a period of acut e public want or emergency may be st opped by order of t he court s at t he inst ance of any government or privat e charit able inst it ut ion. Art . 26. Every person shall respect t he dignit y , personalit y , privacy and peace of mind of his neighbors and ot her persons. The following and similar act s, t hough t hey may not const it ut e a criminal offense, shall produce a cause of act ion for damages, prevent ion and ot her relief: (1) Pry ing int o t he privacy of anot her's residence: (2) Meddling wit h or dist urbing t he privat e life or family relat ions of anot her;
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(3) Int riguing t o cause anot her t o be alienat ed from his friends; (4) Vexing or humiliat ing anot her on account of his religious beliefs, lowly st at ion in life, place of birt h, phy sical defect , or ot her personal condit ion. Art . 27 . Any person suffering mat erial or moral loss because a public servant or employ ee refuses or neglect s, wit hout just cause, t o perform his official dut y may file an act ion for damages and ot her relief against he lat t er, wit hout prejudice t o any disciplinary administ rat ive act ion t hat may be t aken. Art . 28. Unfair compet it ion in agricult ural, commercial or indust rial ent erprises or in labor t hrough t he use of force, int imidat ion, deceit , machinat ion or any ot her unjust , oppressive or highhanded met hod shall give rise t o a right of act ion by t he person who t hereby suffers damage. Art . 29. When t he accused in a criminal prosecut ion is acquit t ed on t he ground t hat his guilt has not been proved bey ond reasonable doubt , a civil act ion for damages for t he same act or omission may be inst it ut ed. Such act ion requires only a preponderance of evidence. Upon mot ion of t he defendant , t he court may require t he plaint iff t o file a bond t o answer for damages in case t he complaint should be found t o be malicious. If in a criminal case t he judgment of acquit t al is based upon reasonable doubt , t he court shall so declare. In t he absence of any declarat ion t o t hat effect , it may be inferred from t he t ext of t he decision whet her or not t he acquit t al is due t o t hat ground. Art . 30. When a separat e civil act ion is brought t o demand civil liabilit y arising from a criminal offense, and no criminal proceedings are inst it ut ed during t he pendency of t he civil case, a preponderance of evidence shall likewise be sufficient t o prove t he act complained of. Art . 31. When t he civil act ion is based on an obligat ion not arising from t he act or omission complained of as a felony , such civil act ion may proceed independent ly of t he criminal proceedings and regardless of t he result of t he lat t er. Art . 32. Any public officer or employ ee, or any privat e individual, who direct ly or indirect ly obst ruct s, defeat s, violat es or in any manner impedes or impairs any of t he following right s and libert ies of anot her person shall be liable t o t he lat t er for damages: (1) Freedom of religion; (2) Freedom of speech; (3) Freedom t o writ e for t he press or t o maint ain a periodical publicat ion; (4) Freedom from arbit rary or illegal det ent ion; (5) Freedom of suffrage; (6) The right against deprivat ion of propert y wit hout due process of law; (7 ) The right t o a just compensat ion when privat e propert y is t aken for public use; (8) The right t o t he equal prot ect ion of t he laws; (9) The right t o be secure in one's person, house, papers, and effect s against unreasonable searches and seizures; (10) The libert y of abode and of changing t he same; (11) The privacy of communicat ion and correspondence; (12) The right t o become a member of associat ions or societ ies for purposes not cont rary t o law; (13) The right t o t ake part in a peaceable assembly t o pet it ion t he government for redress of grievances; (14) The right t o be free from involunt ary servit ude in any form; (15) The right of t he accused against excessive bail; (16) The right of t he accused t o be heard by himself and counsel, t o be informed of t he nat ure and cause of t he accusat ion against him, t o have a speedy and public t rial, t o meet t he wit nesses face t o face, and t o have compulsory process t o secure t he at t endance of wit ness in his behalf; (17 ) Freedom from being compelled t o be a wit ness against one's self, or from being forced t o confess guilt , or from being induced by a promise of immunit y or reward t o make such confession, except when t he person confessing becomes a St at e wit ness; (18) Freedom from excessive fines, or cruel and unusual punishment , unless t he same is imposed or inflict ed in accordance wit h a st at ut e which has not been judicially declared unconst it ut ional; and
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(19) Freedom of access t o t he court s. In any of t he cases referred t o in t his art icle, whet her or not t he defendant 's act or omission const it ut es a criminal offense, t he aggrieved part y has a right t o commence an ent irely separat e and dist inct civil act ion for damages, and for ot her relief. Such civil act ion shall proceed independent ly of any criminal prosecut ion (if t he lat t er be inst it ut ed), and mat be proved by a preponderance of evidence. The indemnit y shall include moral damages. Exemplary damages may also be adjudicat ed. The responsibilit y herein set fort h is not demandable from a judge unless his act or omission const it ut es a violat ion of t he Penal Code or ot her penal st at ut e. Art . 33. In cases of defamat ion, fraud, and phy sical injuries a civil act ion for damages, ent irely separat e and dist inct from t he criminal act ion, may be brought by t he injured part y . Such civil act ion shall proceed independent ly of t he criminal prosecut ion, and shall require only a preponderance of evidence. Art . 34. When a member of a cit y or municipal police force refuses or fails t o render aid or prot ect ion t o any person in case of danger t o life or propert y , such peace officer shall be primarily liable for damages, and t he cit y or municipalit y shall be subsidiarily responsible t herefor. The civil act ion herein recognized shall be independent of any criminal proceedings, and a preponderance of evidence shall suffice t o support such act ion. Art . 35. When a person, claiming t o be injured by a criminal offense, charges anot her wit h t he same, for which no independent civil act ion is grant ed in t his Code or any special law, but t he just ice of t he peace finds no reasonable grounds t o believe t hat a crime has been commit t ed, or t he prosecut ing at t orney refuses or fails t o inst it ut e criminal proceedings, t he complaint may bring a civil act ion for damages against t he alleged offender. Such civil act ion may be support ed by a preponderance of evidence. Upon t he defendant 's mot ion, t he court may require t he plaint iff t o file a bond t o indemnify t he defendant in case t he complaint should be found t o be malicious. If during t he pendency of t he civil act ion, an informat ion should be present ed by t he prosecut ing at t orney , t he civil act ion shall be suspended unt il t he t erminat ion of t he criminal proceedings. Art . 36. Pre-judicial quest ions which must be decided before any criminal prosecut ion may be inst it ut ed or may proceed, shall be governed by rules of court which t he Supreme Court shall promulgat e and which shall not be in conflict wit h t he provisions of t his Code.
BOOK I PERSONS Tit le I. - CIVIL PERSONALITY CHAPTER 1 GENERAL PROVISIONS Art . 37 . Juridical capacit y , which is t he fit ness t o be t he subject of legal relat ions, is inherent in every nat ural person and is lost only t hrough deat h. Capacit y t o act , which is t he power t o do act s wit h legal effect , is acquired and may be lost . (n ) Art . 38. Minorit y , insanit y or imbecilit y , t he st at e of being a deaf-mut e, prodigalit y and civil int erdict ion are mere rest rict ions on capacit y t o act , and do not exempt t he incapacit at ed person from cert ain obligat ions, as when t he lat t er arise from his act s or from propert y relat ions, such as easement s. (32a ) Art . 39. The following circumst ances, among ot hers, modify or limit capacit y t o act : age, insanit y , imbecilit y , t he st at e of being a deaf-mut e, penalt y , prodigalit y , family relat ions, alienage, absence, insolvency and t rust eeship. The consequences of t hese circumst ances are governed in t his Code, ot her codes, t he Rules of Court , and in special laws. Capacit y t o act is not limit ed on account of religious belief or polit ical opinion. A married woman, t went y -one y ears of age or over, is qualified for all act s of civil life, except in cases specified by law.
(n )
CHAPTER 2 NATURAL PERSONS Art . 40. Birt h det ermines personalit y ; but t he conceived child shall be considered born for all purposes t hat are favorable t o it , provided it be born lat er wit h t he condit ions specified in t he following art icle. (29a ) Art . 41. For civil purposes, t he fet us is considered born if it is alive at t he t ime it is complet ely delivered from t he mot her's womb. However, if t he fet us had an int ra-ut erine life of less t han seven mont hs, it is not deemed born if it dies wit hin t went y -four hours aft er it s complet e delivery from t he mat ernal womb. (30a )
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Art . 42. Civil personalit y is ext inguished by deat h. The effect of deat h upon t he right s and obligat ions of t he deceased is det ermined by law, by cont ract and by will. (32a ) Art . 43. If t here is a doubt , as bet ween t wo or more persons who are called t o succeed each ot her, as t o which of t hem died first , whoever alleges t he deat h of one prior t o t he ot her, shall prove t he same; in t he absence of proof, it is presumed t hat t hey died at t he same t ime and t here shall be no t ransmission of right s from one t o t he ot her. (33) CHAPTER 3 JURIDICAL PERSONS Art . 44. The following are juridical persons: (1) The St at e and it s polit ical subdivisions; (2) Ot her corporat ions, inst it ut ions and ent it ies for public int erest or purpose, creat ed by law; t heir personalit y begins as soon as t hey have been const it ut ed according t o law; (3) Corporat ions, part nerships and associat ions for privat e int erest or purpose t o which t he law grant s a juridical personalit y , separat e and dist inct from t hat of each shareholder, part ner or member. (35a ) Art . 45. Juridical persons ment ioned in Nos. 1 and 2 of t he preceding art icle are governed by t he laws creat ing or recognizing t hem. Privat e corporat ions are regulat ed by laws of general applicat ion on t he subject . Part nerships and associat ions for privat e int erest or purpose are governed by t he provisions of t his Code concerning part nerships. (36 a n d 37a ) Art . 46. Juridical persons may acquire and possess propert y of all kinds, as well as incur obligat ions and bring civil or criminal act ions, in conformit y wit h t he laws and regulat ions of t heir organizat ion. (38a ) Art . 47 . Upon t he dissolut ion of corporat ions, inst it ut ions and ot her ent it ies for public int erest or purpose ment ioned in No. 2 of Art icle 44, t heir propert y and ot her asset s shall be disposed of in pursuance of law or t he chart er creat ing t hem. If not hing has been specified on t his point , t he propert y and ot her asset s shall be applied t o similar purposes for t he benefit of t he region, province, cit y or municipalit y which during t he exist ence of t he inst it ut ion derived t he principal benefit s from t he same. (39a ) Tit le II. - CITIZENSHIP AND DOMICILE Art . 48. The following are cit izens of t he Philippines: (1) Those who were cit izens of t he Philippines at t he t ime of t he adopt ion of t he Const it ut ion of t he Philippines; (2) Those born in t he Philippines of foreign parent s who, before t he adopt ion of said Const it ut ion, had been elect ed t o public office in t he Philippines; (3) Those whose fat hers are cit izens of t he Philippines; (4) Those whose mot hers are cit izens of t he Philippines and, upon reaching t he age of majorit y , elect Philippine cit izenship; (5) Those who are nat uralized in accordance wit h law. (n ) Art . 49. Nat uralizat ion and t he loss and reacquisit ion of cit izenship of t he Philippines are governed by special laws. (n ) Art . 50. For t he exercise of civil right s and t he fulfillment of civil obligat ions, t he domicile of nat ural persons is t he place of t heir habit ual residence. (40a ) Art . 51. When t he law creat ing or recognizing t hem, or any ot her provision does not fix t he domicile of juridical persons, t he same shall be underst ood t o be t he place where t heir legal represent at ion is est ablished or where t hey exercise t heir principal funct ions. (41 a ) Tit le III. - MARRIAGE CHAPTER 1 REQUISITES OF MARRIAGE Art . 52. Marriage is not a mere cont ract but an inviolable social inst it ut ion. It s nat ure, consequences and incident s are governed by law and not subject t o st ipulat ion, except t hat t he marriage set t lement s may t o a cert ain ext ent fix
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t he propert y relat ions during t he marriage. (n ) Art . 53. No marriage shall be solemnized unless all t hese requisit es are complied wit h: (1) Legal capacit y of t he cont ract ing part ies; (2) Their consent , freely given; (3) Aut horit y of t he person performing t he marriage; and (4) A marriage license, except in a marriage of except ional charact er (Sec. 1 a , Art . 361 3). Art . 54. Any male of t he age of sixt een y ears or upwards, and any female of t he age of fourt een y ears or upwards, not under any of t he impediment s ment ioned in Art icles 80 t o 84, may cont ract marriage. (2) Art . 55. No part icular form for t he ceremony of marriage is required, but t he part ies wit h legal capacit y t o cont ract marriage must declare, in t he presence of t he person solemnizing t he marriage and of t wo wit nesses of legal age, t hat t hey t ake each ot her as husband and wife. This declarat ion shall be set fort h in an inst rument in t riplicat e, signed by signat ure or mark by t he cont ract ing part ies and said t wo wit nesses and at t est ed by t he person solemnizing t he marriage. In case of a marriage on t he point of deat h, when t he dy ing part y , being phy sically unable, cannot sign t he inst rument by signat ure or mark, it shall be sufficient for one of t he wit nesses t o t he marriage t o sign in his name, which fact shall be at t est ed by t he minist er solemnizing t he marriage. (3) Art . 56. Marriage may be solemnized by : (1) The Chief Just ice and Associat e Just ices of t he Supreme Court ; (2) The Presiding Just ice and t he Just ices of t he Court of Appeals; (3) Judges of t he Court s of First Inst ance; (4) May ors of cit ies and municipalit ies; (5) Municipal judges and just ices of t he peace; (6) Priest s, rabbis, minist ers of t he gospel of any denominat ion, church, religion or sect , duly regist ered, as provided in Art icle 92; and (7 ) Ship capt ains, airplane chiefs, milit ary commanders, and consuls and vice-consuls in special cases provided in Art icles 7 4 and 7 5. (4a ) Art . 57 . The marriage shall be solemnized publicly in t he office of t he judge in open court or of t he may or; or in t he church, chapel or t emple, as t he case may be, and not elsewhere, except in cases of marriages cont ract ed on t he point of deat h or in remot e places in accordance wit h Art icle 7 2 of t his Code, or in case of marriage referred t o in Art icle 7 6 or when one of t he parent s or t he guardian of t he female or t he lat t er herself if over eight een y ears of age request it in writ ing, in which cases t he marriage may be solemnized at a house or place designat ed by said parent or guardian of t he female or by t he lat t er herself in a sworn st at ement t o t hat effect . (5a ) Art . 58. Save marriages of an except ional charact er aut horized in Chapt er 2 of t his Tit le, but not t hose under Art icle 7 5, no marriage shall be solemnized wit hout a license first being issued by t he local civil regist rar of t he municipalit y where eit her cont ract ing part y habit ually resides. (7a ) Art . 59. The local civil regist rar shall issue t he proper license if each of t he cont ract ing part ies swears separat ely before him or before any public official aut horized t o administ er oat hs, t o an applicat ion in writ ing set t ing fort h t hat such part y has t he necessary qualificat ions for cont ract ing marriage. The applicant s, t heir parent s or guardians shall not be required t o exhibit t heir residence cert ificat es in any formalit y in connect ion wit h t he securing of t he marriage license. Such applicat ion shall insofar as possible cont ain t he following dat a: (1) Full name of t he cont ract ing part y ; (2) Place of birt h; (3) Age, dat e of birt h; (4) Civil st at us (single, widow or widower, or divorced); (5) If divorced, how and when t he previous marriage was dissolved; (6) Present residence; (7 ) Degree of relat ionship of t he cont ract ing part ies;
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(8) Full name of t he fat her; (9) Residence of t he fat her; (10) Full name of t he mot her; (11) Residence of t he mot her; (12) Full name and residence of t he guardian or person having charge, in case t he cont ract ing part y has neit her fat her nor mot her and is under t he age of t went y y ears, if a male, or eight een y ears if a female. (7a ) Art . 60. The local civil regist rar, upon receiving such applicat ion, shall require t he exhibit ion of t he original bapt ismal or birt h cert ificat es of t he cont ract ing part ies or copies of such document s duly at t est ed by t he persons having cust ody of t he originals. These cert ificat es or cert ified copies of t he document s required by t his art icle need not t o be sworn t o and shall be exempt from t he document ary st amp t ax. The signat ure and official t it le of t he person issuing t he cert ificat e shall be sufficient proof of it s aut hent icit y . If eit her of t he cont ract ing part ies is unable t o produce his bapt ismal or birt h cert ificat e or a cert ified copy of eit her because of t he dest ruct ion or loss of t he original, or if it is shown by an affidavit of such part y or of any ot her person t hat such bapt ismal or birt h cert ificat e has not y et been received t hough t he same has been request ed of t he person having cust ody t hereof at least fift een day s prior t o t he dat e of t he applicat ion, such part y may furnish in lieu t hereof his residence cert ificat e for t he current y ear or any previous y ears, t o show t he age st at ed in his applicat ion or, in t he absence t hereof, an inst rument drawn up and sworn t o before t he local civil regist rar concerned or any public official aut horized t o solemnize marriage. Such inst rument shall cont ain t he sworn declarat ion of t wo wit nesses, of lawful age, of eit her sex, set t ing fort h t he full name, profession, and residence of such cont ract ing part y and of his or her parent s, if known, and t he place and dat e of birt h of such part y . The nearest of kin of t he cont ract ing part ies shall be preferred as wit nesses, and in t heir default , persons well known in t he province or t he localit y for t heir honest y and good reput e. The exhibit ion of bapt ismal or birt h cert ificat es shall not be required if t he parent s of t he cont ract ing part ies appear personally before t he local civil regist rar concerned and swear t o t he correct ness of t he lawful age of said part ies, as st at ed in t he applicat ion, or when t he local civil regist rar shall, by merely looking at t he applicant s upon t heir personally appearing before him, be convinced t hat eit her or bot h of t hem have t he required age. (8a ) Art . 61. In case eit her of t he cont ract ing part ies is a widowed or divorced person, t he same shall be required t o furnish, inst ead of t he bapt ismal or birt h cert ificat e required in t he last preceding art icle, t he deat h cert ificat e of t he deceased spouse or t he decree of t he divorce court , as t he case may be. In case t he deat h cert ificat e cannot be found, t he part y shall make an affidavit set t ing fort h t his circumst ance and his or her act ual civil st at us and t he name and t he dat e of t he deat h of t he deceased spouse. In case eit her or bot h of t he cont ract ing part ies, being neit her widowed nor divorced, are less t han t went y y ears of age as regards t he male and less t han eight een y ears as regards t he female, t hey shall, in addit ion t o t he requirement s of t he preceding art icles, exhibit t o t he local civil regist rar, t he consent t o t heir marriage, of t heir fat her, mot her or guardian, or persons having legal charge of t hem, in t he order ment ioned. Such consent shall be in writ ing, under oat h t aken wit h t he appearance of t he int erest ed part ies before t he proper local civil regist rar or in t he form of an affidavit made in t he presence of t wo wit nesses and at t est ed before any official aut horized by law t o administ er oat hs.
(9a )
Art . 62. Males above t went y but under t went y -five y ears of age, or females above eight een but under t went y -t hree y ears of age, shall be obliged t o ask t heir parent s or guardian for advice upon t he int ended marriage. If t hey do not obt ain such advice, or if it be unfavorable, t he marriage shall not t ake place t ill aft er t hree mont hs following t he complet ion of t he publicat ion of t he applicat ion for marriage license. A sworn st at ement by t he cont ract ing part ies t o t he effect t hat such advice has been sought , t oget her wit h t he writ t en advice given, if any , shall accompany t he applicat ion for marriage license. Should t he parent s or guardian refuse t o give any advice, t his fact shall be st at ed in t he sworn declarat ion. (n ) Art . 63. The local civil regist rar shall post during t en consecut ive day s at t he main door of t he building where he has his office a not ice, t he locat ion of which shall not be changed once it has been placed, set t ing fort h t he full names and domiciles of t he applicant s for a marriage license and ot her informat ion given in t he applicat ion. This not ice shall request all persons having knowledge of any impediment t o t he marriage t o advise t he local regist rar t hereof. The license shall be issued aft er t he complet ion of t he publicat ion, unless t he local civil regist rar receives informat ion upon any alleged impediment t o t he marriage. (1 0a ) Art . 64. Upon being advised of any alleged impediment t o t he marriage, t he local civil regist rar shall fort hwit h make an invest igat ion, examining persons under oat h. If he is convict ed t hat t here is an impediment t o t he marriage, it shall be his dut y t o wit hhold t he marriage license, unless he is ot herwise ordered by a compet ent court . (n ) Art . 65. The local civil regist rar shall demand t he previous pay ment of fees required by law or regulat ions for each license issued. No ot her sum shall be collect ed, in t he nat ure of a fee or t ax of any kind, for t he issuance of a marriage license. Marriage licenses shall be issued free of charge t o indigent part ies, when bot h male and female do not each own assessed real propert y in excess of five hundred pesos, a fact cert ified t o, wit hout cost , by t he provincial t reasurer, or in t he absence t hereof, by a st at ement duly sworn t o by t he cont ract ing part ies before t he local civil regist rar. The
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license shall be valid in any part of t he Philippines; but it shall be good for no more t han one hundred and t went y day s from t he dat e on which it is issued and shall be deemed canceled at t he expirat ion of said period if t he int erest ed part ies have not made use of it . (1 1 a ) Art . 66. When eit her or bot h of t he cont ract ing part ies are cit izens or subject s of a foreign count ry , it shall be necessary , before a marriage license can be obt ained, t o provide t hemselves wit h a cert ificat e of legal capacit y t o cont ract marriage, t o be issued by t heir respect ive diplomat ic or consular officials. (1 3a ) Art . 67 . The marriage cert ificat e in which t he cont ract ing part ies shall st at e t hat t hey t ake each ot her as husband and wife, shall also cont ain: (1) The full names and domiciles of t he cont ract ing part ies; (2) The age of each; (3) A st at ement t hat t he proper marriage license has been issued according t o law and t hat t he cont ract ing part ies have t he consent of t heir parent s in case t he male is under t went y or t he female under eight een y ears of age; and (4) A st at ement t hat t he guardian or parent has been informed of t he marriage, if t he male is bet ween t he ages of t went y and t went y -five y ears, and t he female bet ween eight een and t went y -t hree y ears of age. (1 5a ) Art . 68. It shall be t he dut y of t he person solemnizing t he marriage t o furnish t o eit her of t he cont ract ing part ies one of t he t hree copies of t he marriage cont ract referred t o in Art icle 55, and t o send anot her copy of t he document not lat er t han fift een day s aft er t he marriage t ook place t o t he local civil regist rar concerned, whose dut y it shall be t o issue t he proper receipt t o any person sending a marriage cont ract solemnized by him, including marriages of an except ional charact er. The official, priest , or minist er solemnizing t he marriage shall ret ain t he t hird copy of t he marriage cont ract , t he marriage license and t he affidavit of t he int erest ed part y regarding t he solemnizat ion of t he marriage in a place ot her t han t hose ment ioned in Art icle 57 if t here be any such affidavit , in t he files t hat he must keep. (1 6a ) Art . 69. It shall be t he dut y of t he local civil regist rar t o prepare t he document s required by t his Tit le, and t o administ er oat hs t o all int erest ed part ies wit hout any charge in bot h cases. The document s and affidavit s filed in connect ion wit h applicat ions for marriage licenses shall be exempt from t he document ary st amp t ax. (1 7a ) Art . 7 0. The local civil regist rar concerned shall ent er all applicat ions for marriage licenses filed wit h him in a regist er book st rict ly in t he order in which t he same shall be received. He shall ent er in said regist er t he names of t he applicant s, t he dat e on which t he marriage license was issued, and such ot her dat a as may be necessary . (1 8a ) Art . 7 1. All marriages performed out side t he Philippines in accordance wit h t he laws in force in t he count ry where t hey were performed, and valid t here as such, shall also be valid in t his count ry , except bigamous, poly gamous, or incest uous marriages as det ermined by Philippine law. (1 9a ) CHAPTER 2 MARRIAGES OF EXCEPTIONAL CHARACTER Art . 7 2. In case eit her of t he cont ract ing part ies is on t he point of deat h or t he female has her habit ual residence at a place more t han fift een kilomet ers dist ant from t he municipal building and t here is no communicat ion by railroad or by provincial or local highway s bet ween t he former and t he lat t er, t he marriage may be solemnized wit hout necessit y of a marriage license; but in such cases t he official, priest , or minist er solemnizing it shall st at e in an affidavit made before t he local civil regist rar or any person aut horized by law t o administ er oat hs t hat t he marriage was performed in art iculo mort is or at a place more t han fift een kilomet ers dist ant from t he municipal building concerned, in which lat t er case he shall give t he name of t he barrio where t he marriage was solemnized. The person who solemnized t he marriage shall also st at e, in eit her case, t hat he t ook t he necessary st eps t o ascert ain t he ages and relat ionship of t he cont ract ing part ies and t hat t here was in his opinion no legal impediment t o t he marriage at t he t ime t hat it was solemnized. (20) Art . 7 3. The original of t he affidavit required in t he last preceding art icle, t oget her wit h a copy of t he marriage cont ract , shall be sent by t he person solemnizing t he marriage t o t he local civil regist rar of t he municipalit y where it was performed wit hin t he period of t hirt y day s, aft er t he performance of t he marriage. The local civil regist rar shall, however, before filing t he papers, require t he pay ment int o t he municipal t reasury of t he legal fees required in Art icle 65. (21 ) Art . 7 4. A marriage in art iculo mort is may also be solemnized by t he capt ain of a ship or chief of an airplane during a voy age, or by t he commanding officer of a milit ary unit , in t he absence of a chaplain, during war. The dut ies ment ioned in t he t wo preceding art icles shall be complied wit h by t he ship capt ain, airplane chief or commanding officer. (n ) Art . 7 5. Marriages bet ween Filipino cit izens abroad may be solemnized by consuls and vice-consuls of t he Republic of
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t he Philippines. The dut ies of t he local civil regist rar and of a judge or just ice of t he peace or may or wit h regard t o t he celebrat ion of marriage shall be performed by such consuls and vice-consuls. (n ) Art . 7 6. No marriage license shall be necessary when a man and a woman who have at t ained t he age of majorit y and who, being unmarried, have lived t oget her as husband and wife for at least five y ears, desire t o marry each ot her. The cont ract ing part ies shall st at e t he foregoing fact s in an affidavit before any person aut horized by law t o administ er oat hs. The official, priest or minist er who solemnized t he marriage shall also st at e in an affidavit t hat he t ook st eps t o ascert ain t he ages and ot her qualificat ions of t he cont ract ing part ies and t hat he found no legal impediment t o t he marriage. (n ) Art . 7 7 . In case t wo persons married in accordance wit h law desire t o rat ify t heir union in conformit y wit h t he regulat ions, rit es, or pract ices of any church, sect , or religion it shall no longer be necessary t o comply wit h t he requirement s of Chapt er 1 of t his Tit le and any rat ificat ion made shall merely be considered as a purely religious ceremony . (23) Art . 7 8. Marriages bet ween Mohammedans or pagans who live in t he non-Christ ian provinces may be performed in accordance wit h t heir cust oms, rit es or pract ices. No marriage license or formal requisit es shall be necessary . Nor shall t he persons solemnizing t hese marriages be obliged t o comply wit h Art icle 92. However, t went y y ears aft er approval of t his Code, all marriages performed bet ween Mohammedans or pagans shall be solemnized in accordance wit h t he provisions of t his Code. But t he President of t he Philippines, upon recommendat ion of t he Secret ary of t he Int erior, may at any t ime before t he expirat ion of said period, by proclamat ion, make any of said provisions applicable t o t he Mohammedan and non-Christ ian inhabit ant s of any of t he non-Christ ian provinces. (25a ) Art . 7 9. Mixed marriages bet ween a Christ ian male and a Mohammedan or pagan female shall be governed by t he general provision of t his Tit le and not by t hose of t he last preceding art icle, but mixed marriages bet ween a Mohammedan or pagan male and a Christ ian female may be performed under t he provisions of t he last preceding art icle if so desired by t he cont ract ing part ies, subject , however, in t he lat t er case t o t he provisions of t he second paragraph of said art icle. (26) CHAPTER 3 VOID AND VOIDABLE MARRIAGES Art . 80. The following marriages shall be void from t he beginning: (1) Those cont ract ed under t he ages of sixt een and fourt een y ears by t he male and female respect ively , even wit h t he consent of t he parent s; (2) Those solemnized by any person not legally aut horized t o perform marriages; (3) Those solemnized wit hout a marriage license, save marriages of except ional charact er; (4) Bigamous or poly gamous marriages not falling under Art icle 83, Number 2; (5) Incest uous marriages ment ioned in Art icle 81; (6) Those where one or bot h cont ract ing part ies have been found guilt y of t he killing of t he spouse of eit her of t hem; (7 ) Those bet ween st epbrot hers and st epsist ers and ot her marriages specified in Art icle 82. (n ) Art . 81. Marriages bet ween t he following are incest uous and void from t heir performance, whet her t he relat ionship bet ween t he part ies be legit imat e or illegit imat e: (1) Bet ween ascendant s and descendant s of any degree; (2) Bet ween brot hers and sist ers, whet her of t he full or half blood; (3) Bet ween collat eral relat ives by blood wit hin t he fourt h civil degree. (28a ) Art . 82. The following marriages shall also be void from t he beginning: (1) Bet ween st epfat hers and st epdaught ers, and st epmot hers and st epsons; (2) Bet ween t he adopt ing fat her or mot her and t he adopt ed, bet ween t he lat t er and t he surviving spouse of t he former, and bet ween t he former and t he surviving spouse of t he lat t er; (3) Bet ween t he legit imat e children of t he adopt er and t he adopt ed. (28a ) Art . 83. Any marriage subsequent ly cont ract ed by any person during t he lifet ime of t he first spouse of such person wit h any person ot her t han such first spouse shall be illegal and void from it s performance, unless:
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(1) The first marriage was annulled or dissolved; or (2) The first spouse had been absent for seven consecut ive y ears at t he t ime of t he second marriage wit hout t he spouse present having news of t he absent ee being alive, or if t he absent ee, t hough he has been absent for less t han seven y ears, is generally considered as dead and believed t o be so by t he spouse present at t he t ime of cont ract ing such subsequent marriage, or if t he absent ee is presumed dead according t o Art icles 390 and 391. The marriage so cont ract ed shall be valid in any of t he t hree cases unt il declared null and void by a compet ent court . (29a ) Art . 84. No marriage license shall be issued t o a widow t ill aft er t hree hundred day s following t he deat h of her husband, unless in t he meant ime she has given birt h t o a child. (n ) Art . 85. A marriage may be annulled for any of t he following causes, exist ing at t he t ime of t he marriage: (1) That t he part y in whose behalf it is sought t o have t he marriage annulled was bet ween t he ages of sixt een and t went y y ears, if male, or bet ween t he ages of fourt een and eight een y ears, if female, and t he marriage was solemnized wit hout t he consent of t he parent , guardian or person having aut horit y over t he part y , unless aft er at t aining t he ages of t went y or eight een y ears, as t he case may be, such part y freely cohabit ed wit h t he ot her and bot h lived t oget her as husband and wife; (2) In a subsequent marriage under Art icle 83, Number 2, t hat t he former husband or wife believed t o be dead was in fact living and t he marriage wit h such former husband or wife was t hen in force; (3) That eit her part y was of unsound mind, unless such part y , aft er coming t o reason, freely cohabit ed wit h t he ot her as husband or wife; (4) That t he consent of eit her part y was obt ained by fraud, unless such part y aft erwards, wit h full knowledge of t he fact s const it ut ing t he fraud, freely cohabit ed wit h t he ot her as her husband or his wife, as t he case may be; (5) That t he consent of eit her part y was obt ained by force or int imidat ion, unless t he violence or t hreat having disappeared, such part y aft erwards freely cohabit ed wit h t he ot her as her husband or his wife, as t he case may be; (6) That eit her part y was, at t he t ime of marriage, phy sically incapable of ent ering int o t he married st at e, and such incapacit y cont inues, and appears t o be incurable. (30a ) Art . 86. Any of t he following circumst ances shall const it ut e fraud referred t o in Number 4 of t he preceding art icle: (1) Misrepresent at ion as t o t he ident it y of one of t he cont ract ing part ies; (2) Non-disclosure of t he previous convict ion of t he ot her part y of a crime involving moral t urpit ude, and t he penalt y imposed was imprisonment for t wo y ears or more; (3) Concealment by t he wife of t he fact t hat at t he t ime of t he marriage, she was pregnant by a man ot her t han her husband. No ot her misrepresent at ion or deceit as t o charact er, rank, fort une or chast it y shall const it ut e such fraud as will give grounds for act ion for t he annulment of marriage. (n ) Art . 87 . The act ion for annulment of marriage must be commenced by t he part ies and wit hin t he periods as follows: (1) For causes ment ioned in Number 1 of Art icle 85, by t he part y whose parent or guardian did not give his or her consent , wit hin four y ears aft er at t aining t he age of t went y or eight een y ears, as t he case may be; or by t he parent or guardian or person having legal charge, at any t ime before such part y has arrived at t he age of t went y or eight een y ears; (2) For causes ment ioned in Number 2 of Art icle 85, by t he spouse who has been absent , during his or her lifet ime; or by eit her spouse of t he subsequent marriage during t he lifet ime of t he ot her; (3) For causes ment ioned in Number 3 of Art icle 85, by t he sane spouse, who had no knowledge of t he ot her's insanit y ; or by any relat ive or guardian of t he part y of unsound mind, at any t ime before t he deat h of eit her part y ; (4) For causes ment ioned in Number 4, by t he injured part y , wit hin four y ears aft er t he discovery of t he fraud; (5) For causes ment ioned in Number 5, by t he injured part y , wit hin four y ears from t he t ime t he force or int imidat ion ceased; (6) For causes ment ioned in Number 6, by t he injured part y , wit hin eight y ears aft er t he marriage. (31 a ) Art . 88. No judgment annulling a marriage shall be promulgat ed upon a st ipulat ion of fact s or by confession of judgment . Art . 89. Children conceived or born of marriages which are void from t he beginning shall have t he same st at us, right s
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and obligat ions as acknowledged nat ural children, and are called nat ural children by legal fict ion. Children conceived of voidable marriages before t he decree of annulment shall be considered as legit imat e; and children conceived t hereaft er shall have t he same st at us, right s and obligat ions as acknowledged nat ural children, and are also called nat ural children by legal fict ion. (n ) Art . 90. When a marriage is annulled, t he court shall award t he cust ody of t he children as it may deem best , and make provision for t heir educat ion and support . At t orney 's fees and expenses incurred in t he lit igat ion shall be charged t o t he conjugal part nership propert y , unless t he act ion fails. (33a ) Art . 91. Damages may be awarded in t he following cases when t he marriage is judicially annulled or declared void from t he beginning: (1) If t here has been fraud, force or int imidat ion in obt aining t he consent of one of t he cont ract ing part ies; (2) If eit her part y was, at t he t ime of t he marriage, phy sically incapable of ent ering int o t he married st at e, and t he ot her part y was unaware t hereof; (3) If t he person solemnizing t he marriage was not legally aut horized t o perform marriages, and t hat fact was known t o one of t he cont ract ing part ies, but he or she concealed it from t he ot her; (4) If a bigamous or poly gamous marriage was celebrat ed, and t he impediment was concealed from t he plaint iff by t he part y disqualified; (5) If in an incest uous marriage, or a marriage bet ween a st epbrot her and a st epsist er or ot her marriage prohibit ed by art icle 82, t he relat ionship was known t o only one of t he cont ract ing part ies but was not disclosed t o t he ot her; (6) If one part y was insane and t he ot her was aware t hereof at t he t ime of t he marriage. (n ) CHAPTER 4 AUTHORITY TO SOLEMNIZE MARRIAGES Art . 92. Every priest , or minist er, or rabbi aut horized by his denominat ion, church, sect , or religion t o solemnize marriage shall send t o t he proper government office a sworn st at ement set t ing fort h his full name and domicile, and t hat he is aut horized by his denominat ion, church, sect , or religion t o solemnize marriage, at t aching t o said st at ement a cert ified copy of his appoint ment . The direct or of t he proper government office, upon receiving such sworn st at ement cont aining t he informat ion required, and being sat isfied t hat t he denominat ion, church, sect , or region of t he applicant operat es in t he Philippines, shall record t he name of such priest or minist er in a suit able regist er and issue t o him an aut horizat ion t o solemnize marriage. Said priest or minist er or rabbi shall be obliged t o exhibit his aut horizat ion t o t he cont ract ing part ies, t o t heir parent s, grandparent s, guardians, or persons in charge demanding t he same. No priest or minist er not having t he required aut horizat ion may solemnize marriage. (34a ) Art . 93. Freedom of religion shall be observed by public officials in t he issuance of aut horizat ion t o solemnize marriages. Consequent ly , no public official shall at t empt t o inquire int o t he t rut h or validit y of any religious doct rine held by t he applicant or by his church. (n ) Art . 94. The public official in charge of regist rat ion of priest s and minist ers shall cancel t he aut horizat ion issued t o a bishop, head, priest , rabbi, past or or minist er of t he gospel of any denominat ion, church, sect , or religion, on his own init iat ive or at t he request of any int erest ed part y , upon showing t hat t he church, sect or religion whose minist ers have been aut horized t o solemnize marriage is no longer in operat ion. The cancellat ion of t he aut horizat ion grant ed t o a priest , past or or minist er shall likewise be ordered upon t he request of t he bishop, head, or lawful aut horit ies of t he denominat ion, church, sect or religion t o which he belongs. (35a ) Art . 95. The public official in charge of regist rat ion of priest s and minist ers, wit h t he approval of t he proper head of Depart ment , is hereby aut horized t o prepare t he necessary forms and t o promulgat e regulat ions for t he purpose of enforcing t he provisions of t his Tit le. Said official may also by regulat ions fix and collect fees for t he aut horizat ion of priest s and minist ers t o solemnize marriages. (36a ) Art . 96. The exist ing laws which punish act s or omissions concerning t he marriage license, solemnizat ion of marriage, aut horit y t o solemnize marriages, and ot her act s or omissions relat ive t o t he celebrat ion of marriage shall remain and cont inue t o be in force. (n ) Tit le IV. - LEGAL SEPARATION Art . 97 . A pet it ion for legal separat ion may be filed: (1) For adult ery on t he part of t he wife and for concubinage on t he part of t he husband as defined in t he Penal Code; or
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(2) An at t empt by one spouse against t he life of t he ot her. (n ) Art . 98. In every case t he court must t ake st eps, before grant ing t he legal separat ion, t oward t he reconciliat ion of t he spouses, and must be fully sat isfied t hat such reconciliat ion is highly improbable. (n ) Art . 99. No person shall be ent it led t o a legal separat ion who has not resided in t he Philippines for one y ear prior t o t he filing of t he pet it ion, unless t he cause for t he legal separat ion has t aken place wit hin t he t errit ory of t his Republic. (Sec. 2a , Act No. 271 0) Art . 100. The legal separat ion may be claimed only by t he innocent spouse, provided t here has been no condonat ion of or consent t o t he adult ery or concubinage. Where bot h spouses are offenders, a legal separat ion cannot be claimed by eit her of t hem. Collusion bet ween t he part ies t o obt ain legal separat ion shall cause t he dismissal of t he pet it ion. (3a ,
Act No. 271 0)
Art . 101. No decree of legal separat ion shall be promulgat ed upon a st ipulat ion of fact s or by confession of judgment . In case of non-appearance of t he defendant , t he court shall order t he prosecut ing at t orney t o inquire whet her or not a collusion bet ween t he part ies exist s. If t here is no collusion, t he prosecut ing at t orney shall int ervene for t he St at e in order t o t ake care t hat t he evidence for t he plaint iff is not fabricat ed. (n ) Art . 102. An act ion for legal separat ion cannot be filed except wit hin one y ear from and aft er t he dat e on which t he plaint iff became cognizant of t he cause and wit hin five y ears from and aft er t he dat e when such cause occurred. (4a , Act
271 0)
Art . 103. An act ion for legal separat ion shall in no case be t ried before six mont hs shall have elapsed since t he filing of t he pet it ion. (5a, Act 27 10) Art . 104. Aft er t he filing of t he pet it ion for legal separat ion, t he spouses shall be ent it led t o live separat ely from each ot her and manage t heir respect ive propert y . The husband shall cont inue t o manage t he conjugal part nership propert y but if t he court deems it proper, it may appoint anot her t o manage said propert y , in which case t he administ rat or shall have t he same right s and dut ies as a guardian and shall not be allowed t o dispose of t he income or of t he capit al except in accordance wit h t he orders of t he court . (6, Act 271 0) Art . 105. During t he pendency of legal separat ion proceedings t he court shall make provision for t he care of t he minor children in accordance wit h t he circumst ances and may order t he conjugal part nership propert y or t he income t herefrom t o be set aside for t heir support ; and in default t hereof said minor children shall be cared for in conformit y wit h t he provisions of t his Code; but t he Court shall abst ain from making any order in t his respect in case t he parent s have by mut ual agreement , made provision for t he care of said minor children and t hese are, in t he judgment of t he court , well cared for. (7a , Act 271 0) Art . 106. The decree of legal separat ion shall have t he following effect s: (1) The spouses shall be ent it led t o live separat ely from each ot her, but marriage bonds shall not be severed; (2) The conjugal part nership of gains or t he absolut e conjugal communit y of propert y shall be dissolved and liquidat ed, but t he offending spouse shall have no right t o any share of t he profit s earned by t he part nership or communit y , wit hout prejudice t o t he provisions of Art icle 17 6; (3) The cust ody of t he minor children shall be awarded t o t he innocent spouse, unless ot herwise direct ed by t he court in t he int erest of said minors, for whom said court may appoint a guardian; (4) The offending spouse shall be disqualified from inherit ing from t he innocent spouse by int est at e succession. Moreover, provisions in favor of t he offending spouse made in t he will of t he innocent one shall be revoked by operat ion of law. (n ) Art . 107 . The innocent spouse, aft er a decree of legal separat ion has been grant ed, may revoke t he donat ions by reason of marriage made by him or by her t o t he offending spouse. Alienat ion and mort gages made before t he not at ion of t he complaint for revocat ion in t he Regist ry of Propert y shall be valid. This act ion lapses aft er four y ears following t he dat e t he decree became final. (n ) Art . 108. Reconciliat ion st ops t he proceedings for legal separat ion and rescinds t he decree of legal separat ion already rendered. The revival of t he conjugal part nership of gains or of t he absolut e conjugal communit y of propert y shall be governed by Art icle 195. (1 0a . Act 271 0) Tit le V. - RIGHTS AND OBLIGATIONS BETWEEN HUSBAND AND WIFE
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Art . 109. The husband and wife are obliged t o live t oget her, observe mut ual respect and fidelit y , and render mut ual help and support . (56a ) Art . 110. The husband shall fix t he residence of t he family . But t he court may exempt t he wife from living wit h t he husband if he should live abroad unless in t he service of t he Republic. (58a ) Art . 111. The husband is responsible for t he support of t he wife and t he rest of t he family . These expenses shall be met first from t he conjugal propert y , t hen from t he husband's capit al, and last ly from t he wife's paraphernal propert y . In case t here is a separat ion of propert y , by st ipulat ion in t he marriage set t lement s, t he husband and wife shall cont ribut e proport ionat ely t o t he family expenses. (n ) Art . 112. The husband is t he administ rat or of t he conjugal propert y , unless t here is a st ipulat ion in t he marriage set t lement s conferring t he administ rat ion upon t he wife. She may also administ er t he conjugal part nership in ot her cases specified in t his Code. (n ) Art . 113. The husband must be joined in all suit s by or against t he wife, except : (1) When t hey are judicially separat ed; (2) If t hey have in fact been separat ed for at least one y ear; (3) When t here is a separat ion of propert y agreed upon in t he marriage set t lement s; (4) If t he administ rat ion of all t he propert y in t he marriage has been t ransferred t o her, in accordance wit h Art icles 196 and 197 ; (5) When t he lit igat ion is bet ween t he husband and wife; (6) If t he suit concerns her paraphernal propert y ; (7 ) When t he act ion is upon t he civil liabilit y arising from a criminal offense; (8) If t he lit igat ion is incident al t o t he profession, occupat ion or business in which she is engaged; (9) In any civil act ion referred t o in Art icles 25 t o 35; and (10) In an act ion upon a quasi-delict . In t he cases ment ioned in Nos. 7 t o 10, t he husband must be joined as a part y defendant if t he t hird paragraph of Art icle 163 is applicable. (n ) Art . 114. The wife cannot , wit hout t he husband's consent acquire any propert y by grat uit ous t it le, except from her ascendant s, descendant s, parent s-in-law, and collat eral relat ives wit hin t he fourt h degree. (n ) Art . 115. The wife manages t he affairs of t he household. She may purchase t hings necessary for t he support of t he family , and t he conjugal part nership shall be bound t hereby . She may borrow money for t his purpose, if t he husband fails t o deliver t he proper sum. The purchase of jewelry and precious object s is voidable, unless t he t ransact ion has been expressly or t acit ly approved by t he husband, or unless t he price paid is from her paraphernal propert y . (62a ) Art . 116. When one of t he spouses neglect s his or her dut ies t o t he conjugal union or brings danger, dishonor or mat erial injury upon t he ot her, t he injured part y may apply t o t he court for relief. The court may counsel t he offender t o comply wit h his or her dut ies, and t ake such measures as may be proper. (n ) Art . 117 . The wife may exercise any profession or occupat ion or engage in business. However, t he husband may object , provided: (1) His income is sufficient for t he family , according t o it s social st anding, and (2) His opposit ion is founded on serious and valid grounds. In case of disagreement on t his quest ion, t he parent s and grandparent s as well as t he family council, if any , shall be consult ed. If no agreement is st ill arrived at , t he court will decide what ever may be proper and in t he best int erest of t he family . (n ) Tit le VI. - PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE CHAPTER 1 GENERAL PROVISIONS Art . 118. The propert y relat ions bet ween husband and wife shall be governed in t he following order: (1) By cont ract execut ed before t he marriage;
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(2) By t he provisions of t his Code; and (3) By cust om. (1 31 5a ) Art . 119. The fut ure spouses may in t he marriage set t lement s agree upon absolut e or relat ive communit y of propert y , or upon complet e separat ion of propert y , or upon any ot her regime. In t he absence of marriage set t lement s, or when t he same are void, t he sy st em of relat ive communit y or conjugal part nership of gains as est ablished in t his Code, shall govern t he propert y relat ions bet ween husband and wife. (n ) Art . 120. A minor who according t o law may cont ract marriage, may also execut e his or her marriage set t lement s; but t hey shall be valid only if t he persons designat ed by law t o give consent t o t he marriage of t he minor t ake part in t he ant e-nupt ial agreement . In t he absence of t he parent s or of a guardian, t he consent t o t he marriage set t lement s will be given by t he family council. (1 31 8a ) Art . 121. In order t hat any modificat ion in t he marriage set t lement s may be valid, it must be made before t he celebrat ion of t he marriage, subject t o t he provisions of Art icle 191. (1 31 9a ) Art . 122. The marriage set t lement s and any modificat ion t hereof shall be governed by t he St at ut e of Frauds, and execut ed before t he celebrat ion of t he marriage. They shall not prejudice t hird persons unless t hey are recorded in t he Regist ry of Propert y . (1 321 a ) Art . 123. For t he validit y of marriage set t lement s execut ed by any person upon whom a sent ence of civil int erdict ion has been pronounced, t he presence and part icipat ion of t he guardian shall be indispensable, who for t his purpose shall be designat ed by a compet ent court , in accordance wit h t he provisions of t he Rules of Court . (1 323a ) Art . 124. If t he marriage is bet ween a cit izen of t he Philippines and a foreigner, whet her celebrat ed in t he Philippines or abroad, t he following rules shall prevail: (1) If t he husband is a cit izen of t he Philippines while t he wife is a foreigner, t he provisions of t his Code shall govern t heir relat ions; (2) If t he husband is a foreigner and t he wife is a cit izen of t he Philippines, t he laws of t he husband's count ry shall be followed, wit hout prejudice t o t he provisions of t his Code wit h regard t o immovable propert y . (1 325a ) Art . 125. Every t hing st ipulat ed in t he set t lement s or cont ract s referred t o in t he preceding art icles in considerat ion of a fut ure marriage shall be rendered void and wit hout effect what ever, if t he marriage should not t ake place. However, t hose st ipulat ions t hat do not depend upon t he celebrat ion of t he marriage shall be valid. (1 326a ) CHAPTER 2 DONATIONS BY REASON OF MARRIAGE Art . 126. Donat ions by reasons of marriage are t hose which are made before it s celebrat ion, in considerat ion of t he same and in favor of one or bot h of t he fut ure spouses. (1 327) Art . 127 . These donat ions are governed by t he rules on ordinary donat ions est ablished in Tit le III of Book III, except as t o t heir form which shall be regulat ed by t he St at ut e of Frauds; and insofar a s t hey are not modified by t he following art icles. (1 328a ) Art . 128. Minors may make and receive donat ions in t heir ant e-nupt ial cont ract , provided t hey are aut horized by t he persons who are t o give t heir consent t o t he marriage of said minors. (1 329a ) Art . 129. Express accept ance is not necessary for t he validit y of t hese donat ions. (1 330) Art . 130. The fut ure spouses may give each ot her in t heir marriage set t lement s as much as one-fift h of t heir present propert y , and wit h respect t o t heir fut ure propert y , only in t he event of deat h, t o t he ext ent laid down by t he provisions of t his Code referring t o t est ament ary succession. (1 331 a ) Art . 131. The donor by reason of marriage shall release t he propert y donat ed from mort gages and all ot her encumbrances upon t he same, wit h t he except ion of easement s, unless in t he marriage set t lement s or in t he cont ract s t he cont rary has been st ipulat ed. (1 332a ) Art . 132. A donat ion by reason of marriage is not revocable, save in t he following cases: (1) If it is condit ional and t he condit ion is not complied wit h; (2) If t he marriage is not celebrat ed; (3) When t he marriage t akes place wit hout t he consent of t he parent s or guardian, as required by law; (4) When t he marriage is annulled, and t he donee act ed in bad fait h; (5) Upon legal separat ion, t he donee being t he guilt y spouse;
14/187
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(6) When t he donee has commit t ed an act of ingrat it ude as specified by t he provisions of t his Code on donat ions in general. (1 333a ) Art . 133. Every donat ion bet ween t he spouses during t he marriage shall be void. This prohibit ion does not apply when t he donat ion t akes effect aft er t he deat h of t he donor. Neit her does t his prohibit ion apply t o moderat e gift s which t he spouses may give each ot her on t he occasion of any family rejoicing. (1 334a ) Art . 134. Donat ions during t he marriage by one of t he spouses t o t he children whom t he ot her spouse had by anot her marriage, or t o persons of whom t he ot her spouse is a presumpt ive heir at t he t ime of t he donat ion are voidable, at t he inst ance of t he donor's heirs aft er his deat h. (1 335a ) CHAPTER 3 PARAPHERNAL PROPERTY Art . 135. All propert y brought by t he wife t o t he marriage, as well as all propert y she acquires during t he marriage, in accordance wit h art icle 148, is paraphernal. (1 381 a ) Art . 136. The wife ret ains t he ownership of t he paraphernal propert y . (1 382) Art . 137 . The wife shall have t he administ rat ion of t he paraphernal propert y , unless she delivers t he same t o t he husband by means of a public inst rument empowering him t o administ er it . In t his case, t he public inst rument shall be recorded in t he Regist ry of Propert y . As for t he movables, t he husband shall give adequat e securit y . (1 384a ) Art . 138. The fruit s of t he paraphernal propert y form part of t he asset s of t he conjugal part nership, and shall be subject t o t he pay ment of t he expenses of t he marriage. The propert y it self shall also be subject t o t he daily expenses of t he family , if t he propert y of t he conjugal part nership and t he husband's capit al are not sufficient t herefor. (1 385a ) Art . 139. The personal obligat ions of t he husband can not be enforced against t he fruit s of t he paraphernal propert y , unless it be proved t hat t hey redounded t o t he benefit of t he family . (1 386) Art . 140. A married woman of age may mort gage, encumber, alienat e or ot herwise dispose of her paraphernal propert y , wit hout t he permission of t he husband, and appear alone in court t o lit igat e wit h regard t o t he same. (n ) Art . 141. The alienat ion of any paraphernal propert y administ ered by t he husband gives a right t o t he wife t o require t he const it ut ion of a mort gage or any ot her securit y for t he amount of t he price which t he husband may have received.
(1 390a )
CHAPTER 4 CONJUGAL PARTNERSHIP OF GAINS SECTION 1. - General Provisions Art . 142. By means of t he conjugal part nership of gains t he husband and wife place in a common fund t he fruit s of t heir separat e propert y and t he income from t heir work or indust ry , and divide equally , upon t he dissolut ion of t he marriage or of t he part nership, t he net gains or benefit s obt ained indiscriminat ely by eit her spouse during t he marriage. (1 392a ) Art . 143. All propert y of t he conjugal part nership of gains is owned in common by t he husband and wife. (n ) Art . 144. When a man and a woman live t oget her as husband and wife, but t hey are not married, or t heir marriage is void from t he beginning, t he propert y acquired by eit her or bot h of t hem t hrough t heir work or indust ry or t heir wages and salaries shall be governed by t he rules on co-ownership. (n ) Art . 145. The conjugal part nership shall commence precisely on t he dat e of t he celebrat ion of t he marriage. Any st ipulat ion t o t he cont rary shall be void. (1 393) Art . 146. Waiver of t he gains or of t he effect s of t his part nership during marriage cannot be made except in case of judicial separat ion. When t he waiver t akes place by reason of separat ion, or aft er t he marriage has been dissolved or annulled, t he same shall appear in a public inst rument , and t he credit ors shall have t he right which Art icle 1052 grant s t hem. (1 394a ) Art . 147 . The conjugal part nership shall be governed by t he rules on t he cont ract of part nership in all t hat is not in conflict wit h what is expressly det ermined in t his Chapt er. (1 395)
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SECTION 2. - Exclusive Propert y of Each Spouse Art . 148. The following shall be t he exclusive propert y of each spouse: (1) That which is brought t o t he marriage as his or her own; (2) That which each acquires, during t he marriage, by lucrat ive t it le; (3) That which is acquired by right of redempt ion or by exchange wit h ot her propert y belonging t o only one of t he spouses; (4) That which is purchased wit h exclusive money of t he wife or of t he husband. (1 396) Art . 149. Whoever gives or promises capit al t o t he husband shall not be subject t o warrant y against evict ion, except in case of fraud. (1 937) Art . 150. Propert y donat ed or left by will t o t he spouses, joint ly and wit h designat ion of det erminat e shares, shall pert ain t o t he wife as paraphernal propert y , and t o t he husband as capit al, in t he proport ion specified by t he donor or t est at or, and in t he absence of designat ion, share and share alike, wit hout prejudice t o what is provided in Art icle 7 53.
(1 398a )
Art . 151. If t he donat ions are onerous, t he amount of t he charges shall be deduct ed from t he paraphernal propert y or from t he husband's capit al, whenever t hey have been borne by t he conjugal part nership. (1 399a ) Art . 152. If some credit pay able in a cert ain number of y ears, or a life pension, should pert ain t o one of t he spouses, t he provisions of Art icles 156 and 157 shall be observed t o det ermine what const it ut es t he paraphernal propert y and what forms t he capit al of t he husband. (1 400a ) SECTION 3. - Conjugal Part nership Propert y Art . 153. The following are conjugal part nership propert y : (1) That which is acquired by onerous t it le during t he marriage at t he expense of t he common fund, whet her t he acquisit ion be for t he part nership, or for only one of t he spouses; (2) That which is obt ained by t he indust ry , or work, or as salary of t he spouses, or of eit her of t hem; (3) The fruit s, rent s or int erest s received or due during t he marriage, coming from t he common propert y or from t he exclusive propert y of each spouse. (1 401 ) Art . 154. That share of t he hidden t reasure which t he law awards t o t he finder or t he propriet or belongs t o t he conjugal part nership. (n ) Art . 155. Things acquired by occupat ion, such as fishing and hunt ing, pert ain t o t he conjugal part nership of gains. (n ) Art . 156. Whenever an amount or credit pay able in a cert ain number of y ears belongs t o one of t he spouses, t he sums which may be collect ed by inst allment s due during t he marriage shall not pert ain t o t he conjugal part nership, but shall be considered capit al of t he husband or of t he wife, as t he credit may belong t o one or t he ot her spouse. (1 402) Art . 157 . The right t o an annuit y , whet her perpet ual or of life, and t he right of usufruct , belonging t o one of t he spouses shall form a part of his or her separat e propert y , but t he fruit s, pensions and int erest s due during t he marriage shall belong t o t he part nership. The usufruct which t he spouses have over t he propert y of t heir children, t hough of anot her marriage, shall be included in t his provision. (1 403a ) Art . 158. Improvement s, whet her for ut ilit y or adornment , made on t he separat e propert y of t he spouses t hrough advancement s from t he part nership or t hrough t he indust ry of eit her t he husband or t he wife, belong t o t he conjugal part nership. Buildings const ruct ed, at t he expense of t he part nership, during t he marriage on land belonging t o one of t he spouses, also pert ain t o t he part nership, but t he value of t he land shall be reimbursed t o t he spouse who owns t he same. (1 404a ) Art . 159. Whenever t he paraphernal propert y or t he husband's capit al consist s, in whole or in part , of livest ock exist ing upon t he dissolut ion of t he part nership, t he number of animals exceeding t hat brought t o t he marriage shall be deemed t o be of t he conjugal part nership. (1 405a ) Art . 160. All propert y of t he marriage is presumed t o belong t o t he conjugal part nership, unless it be proved t hat it pert ains exclusively t o t he husband or t o t he wife. (1 407) SECTION 4. - Charges Upon and Obligat ion
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of t he Conjugal Part nership Art . 161. The conjugal part nership shall be liable for: (1) All debt s and obligat ions cont ract ed by t he husband for t he benefit of t he conjugal part nership, and t hose cont ract ed by t he wife, also for t he same purpose, in t he cases where she may legally bind t he part nership; (2) Arrears or income due, during t he marriage, from obligat ions which const it ut e a charge upon propert y of eit her spouse or of t he part nership; (3) Minor repairs or for mere preservat ion made during t he marriage upon t he separat e propert y of eit her t he husband or t he wife; major repairs shall not be charged t o t he part nership; (4) Major or minor repairs upon t he conjugal part nership propert y ; (5) The maint enance of t he family and t he educat ion of t he children of bot h husband and wife, and of legit imat e children of one of t he spouses; (6) Expenses t o permit t he spouses t o complet e a professional, vocat ional or ot her course. (1 408a ) Art . 162. The value of what is donat ed or promised t o t he common children by t he husband, only for securing t heir fut ure or t he finishing of a career, or by bot h spouses t hrough a common agreement , shall also be charged t o t he conjugal part nership, when t hey have not st ipulat ed t hat it is t o be sat isfied from t he propert y of one of t hem, in whole or in part . (1 409) Art . 163. The pay ment of debt s cont ract ed by t he husband or t he wife before t he marriage shall not be charged t o t he conjugal part nership. Neit her shall t he fines and pecuniary indemnit ies imposed upon t hem be charged t o t he part nership. However, t he pay ment of debt s cont ract ed by t he husband or t he wife before t he marriage, and t hat of fines and indemnit ies imposed upon t hem, may be enforced against t he part nership asset s aft er t he responsibilit ies enumerat ed in Art icle 161 have been covered, if t he spouse who is bound should have no exclusive propert y or if it should be insufficient ; but at t he t ime of t he liquidat ion of t he part nership such spouse shall be charged for what has been paid for t he purpose above-ment ioned. (1 41 0) Art . 164. What ever may be lost during t he marriage in any kind of gambling, bet t ing or game, whet her permit t ed or prohibit ed by law, shall be borne by t he loser, and shall not be charged t o t he conjugal part nership. (1 41 1 a ) SECTION 5. - Administ rat ion of t he Conjugal Part nership Art . 165. The husband is t he administ rat or of t he conjugal part nership. (1 41 2a ) Art . 166. Unless t he wife has been declared a non compos ment is or a spendt hrift , or is under civil int erdict ion or is confined in a leprosarium, t he husband cannot alienat e or encumber any real propert y of t he conjugal part nership wit hout t he wife's consent . If she refuses unreasonably t o give her consent , t he court may compel her t o grant t he same. This art icle shall not apply t o propert y acquired by t he conjugal part nership before t he effect ive dat e of t his Code.
(1 41 3a )
Art . 167 . In case of abuse of powers of administ rat ion of t he conjugal part nership propert y by t he husband, t he court s, on pet it ion of t he wife, may provide for receivership, or administ rat ion by t he wife, or separat ion of propert y . (n ) Art . 168. The wife may , by express aut horit y of t he husband embodied in a public inst rument , administ er t he conjugal part nership propert y . (n ) Art . 169. The wife may also by express aut horit y of t he husband appearing in a public inst rument , administ er t he lat t er's est at e. (n ) Art . 17 0. The husband or t he wife may dispose by will of his or her half of t he conjugal part nership profit s. (1 41 4a ) Art . 17 1. The husband may dispose of t he conjugal part nership propert y for t he purposes specified in Art icles 161 and 162. (1 41 5a ) Art . 17 2. The wife cannot bind t he conjugal part nership wit hout t he husband's consent except in cases provided by law.
(1 41 6a )
Art . 17 3. The wife may , during t he marriage, and wit hin t en y ears from t he t ransact ion quest ioned, ask t he court s for t he annulment of any cont ract of t he husband ent ered int o wit hout her consent , when such consent is required, or any act or cont ract of t he husband which t ends t o defraud her or impair her int erest in t he conjugal part nership propert y . Should t he wife fail t o exercise t his right , she or her heirs, aft er t he dissolut ion of t he marriage, may demand t he
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value of propert y fraudulent ly alienat ed by t he husband. (n ) Art . 17 4. Wit h t he except ion of moderat e donat ions for charit y , neit her husband nor wife can donat e any propert y of t he conjugal part nership wit hout t he consent of t he ot her. (n ) SECTION 6. - Dissolut ion of t he Conjugal Part nership Art . 17 5. The conjugal part nership of gains t erminat es: (1) Upon t he deat h of eit her spouse; (2) When t here is a decree of legal separat ion; (3) When t he marriage is annulled; (4) In case of judicial separat ion of propert y under Art icle 191. (1 41 7a ) Art . 17 6. In case of legal separat ion, t he guilt y spouse shall forfeit his or her share of t he conjugal part nership profit s, which shall be awarded t o t he children of bot h, and t he children of t he guilt y spouse had by a prior marriage. However, if t he conjugal part nership propert y came most ly or ent irely from t he work or indust ry , or from t he wages and salaries, or from t he fruit s of t he separat e propert y of t he guilt y spouse, t his forfeit ure shall not apply . In case t here are no children, t he innocent spouse shall be ent it led t o all t he net profit s. (n ) Art . 17 7 . In case of annulment of t he marriage, t he spouse who act ed in bad fait h or gave cause for annulment shall forfeit his or her share of t he conjugal part nership profit s. The provision of t he preceding art icle shall govern. (n ) Art . 17 8. The separat ion in fact bet ween husband and wife wit hout judicial approval, shall not affect t he conjugal part nership, except t hat : (1) The spouse who leaves t he conjugal home or refuses t o live t herein, wit hout just cause, shall not have a right t o be support ed; (2) When t he consent of one spouse t o any t ransact ion of t he ot her is required by law, judicial aut horizat ion shall be necessary ; (3) If t he husband has abandoned t he wife wit hout just cause for at least one y ear, she may pet it ion t he court for a receivership, or administ rat ion by her of t he conjugal part nership propert y , or separat ion of propert y . (n ) SECTION 7 . - Liquidat ion of t he Conjugal Part nership Art . 17 9. Upon t he dissolut ion of t he conjugal part nership, an invent ory shall be formed, but such invent ory shall not be necessary : (1) If, aft er t he dissolut ion of t he part nership, one of t he spouses should have renounced it s effect s and consequences in due t ime; or (2) When separat ion of propert y has preceded t he dissolut ion of t he part nership. (1 41 8a ) Art . 180. The bed and bedding which t he spouses ordinarily use shall not be included in t he invent ory . These effect s, as well as t he clot hing for t heir ordinary use, shall be delivered t o t he surviving spouse. (1 420) Art . 181. The invent ory having been complet ed, t he paraphernal propert y shall first be paid. Then, t he debt s and charges against t he conjugal part nership shall be paid. (1 422a ) Art . 182. The debt s, charges and obligat ions of t he conjugal part nership having been paid; t he capit al of t he husband shall be liquidat ed and paid t o t he amount of t he propert y invent oried. (1 423a ) Art . 183. The deduct ions from t he invent oried propert y having been made as provided in t he t wo preceding art icles, t he remainder of said propert y shall const it ut e t he credit of t he conjugal part nership. (1 424) Art . 184. The loss or det eriorat ion of t he movables belonging t o eit her spouse, alt hough t hrough fort uit ous event , shall be paid from t he conjugal part nership of gains, should t here be any . Those suffered by real propert y shall not be reimbursable in any case, except t hose on paraphernal propert y administ ered by t he husband, when t he losses were due t o his fault . He shall pay for t he same. (1 425a ) Art . 185. The net remainder of t he conjugal part nership of gains shall be divided equally bet ween t he husband and t he wife or t heir respect ive heirs, unless a different basis of division was agreed upon in t he marriage set t lement s. (1 426a ) Art . 186. The mourning apparel of t he widow shall be paid for out of t he est at e of t he deceased husband. (1 427a ) Art . 187 . Wit h regard t o t he format ion of t he invent ory , rules for appraisal and sale of propert y of t he conjugal
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part nership, and ot her mat t ers which are not expressly det ermined in t he present Chapt er, t he Rules of Court on t he administ rat ion of est at es of deceased persons shall be observed. (1 428a ) Art . 188. From t he common mass of propert y support shall be given t o t he surviving spouse and t o t he children during t he liquidat ion of t he invent oried propert y and unt il what belongs t o t hem is delivered; but from t his shall be deduct ed t hat amount received for support which exceeds t he fruit s or rent s pert aining t o t hem. (1 430) Art . 189. Whenever t he liquidat ion of t he part nership of t wo or more marriages cont ract ed by t he same person should be carried out at t he same t ime, in order t o det ermine t he capit al of each part nership all kinds of proof in t he absence of invent ories shall be admit t ed; and in case of doubt , t he part nership propert y shall be divided bet ween t he different part nerships in proport ion t o t he durat ion of each and t o t he propert y belonging t o t he respect ive spouses. (1 431 ) CHAPTER 5 SEPARATION OF PROPERTY OF THE SPOUSES AND ADMINISTRATION OF PROPERTY BY THE WIFE DURING THE MARRIAGE Art . 190. In t he absence of an express declarat ion in t he marriage set t lement s, t he separat ion of propert y bet ween spouses during t he marriage shall not t ake place save in virt ue of a judicial order. (1 432a ) Art . 191. The husband or t he wife may ask for t he separat ion of propert y , and it shall be decreed when t he spouse of t he pet it ioner has been sent enced t o a penalt y which carries wit h it civil int erdict ion, or has been declared absent , or when legal separat ion has been grant ed. In case of abuse of powers of administ rat ion of t he conjugal part nership propert y by t he husband, or in case of abandonment by t he husband, separat ion of propert y may also be ordered by t he court , according t o t he provisions of Art icles 167 and 17 8, No. 3. In all t hese cases, it is sufficient t o present t he final judgment which has been ent ered against t he guilt y or absent spouse. (1 433a ) The husband and t he wife may agree upon t he dissolut ion of t he conjugal part nership during t he marriage, subject t o judicial approval. All t he credit ors of t he husband and of t he wife, as well as of t he conjugal part nership shall be not ified of any pet it ion for judicial approval or t he volunt ary dissolut ion of t he conjugal part nership, so t hat any such credit ors may appear at t he hearing t o safeguard his int erest s. Upon approval of t he pet it ion for dissolut ion of t he conjugal part nership, t he court shall t ake such measures as may prot ect t he credit ors and ot her t hird persons. Aft er dissolut ion of t he conjugal part nership, t he provisions of Art icles 214 and 215 shall apply . The provisions of t his Code concerning t he effect of part it ion st at ed in Art icles 498 t o 501 shall be applicable. (1 433a ) Art . 192. Once t he separat ion of propert y has been ordered, t he conjugal part nership shall be dissolved, and it s liquidat ion shall be made in conformit y wit h what has been est ablished by t his Code. However, wit hout prejudice t o t he provisions of Art icle 292, t he husband and t he wife shall be reciprocally liable for t heir support during t he separat ion, and for t he support and educat ion of t heir children; all in proport ion t o t heir respect ive propert y . The share of t he spouse who is under civil int erdict ion or absent shall be administ ered in accordance wit h t he Rules of Court . (1 434a ) Art . 193. The complaint for separat ion and t he final judgment declaring t he same, shall be not ed and recorded in t he proper regist ers of propert y , if t he judgment should refer t o immovable propert y . (1 437) Art . 194. The separat ion of propert y shall not prejudice t he right s previously acquired by credit ors. (1 438) Art . 195. The separat ion of propert y ceases: (1) Upon reconciliat ion of t he spouses, in case of legal separat ion; (2) When t he civil int erdict ion t erminat es; (3) When t he absent spouse appears; (4) When t he court , at t he inst ance of t he wife, aut horizes t he husband t o resume t he administ rat ion of t he conjugal part nership, t he court being sat isfied t hat t he husband will not again abuse his powers as an administ rat or; (5) When t he husband, who has abandoned t he wife, rejoins her. In t he above cases, t he propert y relat ions bet ween t he spouses shall be governed by t he same rules as before t he separat ion, wit hout prejudice t o t he act s and cont ract s legally execut ed during t he separat ion.
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The spouses shall st at e, in a public document , all t he propert y which t hey ret urn t o t he marriage and which shall const it ut e t he separat e propert y of each. This public document shall be recorded in t he Regist ry of Propert y . In t he cases referred t o in t his art icle, all t he propert y brought in shall be deemed t o be newly cont ribut ed, even t hough all or some may be t he same which exist ed before t he liquidat ion effect ed by reason of t he separat ion. (1 439a ) Art . 196. Wit h t he conjugal part nership subsist ing, t he administ rat ion of all classes of propert y in t he marriage may be t ransferred by t he court s t o t he wife: (1) When she becomes t he guardian of her husband; (2) When she asks for t he declarat ion of his absence; (3) In case of civil int erdict ion of t he husband. The court s may also confer t he administ rat ion t o t he wife, wit h such limit at ion as t hey may deem advisable, if t he husband should become a fugit ive from just ice or be in hiding as a defendant in a criminal case, or if, being absolut ely unable t o administ er, he should have failed t o provide for administ rat ion. (1 441 a ) Art . 197 . The wife t o whom t he administ rat ion of all t he propert y of t he marriage is t ransferred shall have, wit h respect t o said propert y , t he same powers and responsibilit y which t he husband has when he is t he administ rat or, but alway s subject t o t he provisions of t he last paragraph of t he preceding art icle. (1 442a ) CHAPTER 6 SY STEM OF ABSOLUTE COMMUNITY (n ) Art . 198. In case t he fut ure spouses agree in t he marriage set t lement s t hat t he sy st em of absolut e communit y shall govern t heir propert y relat ions during marriage, t he following provisions shall be of supplement ary applicat ion. Art . 199. In t he absence of st ipulat ion t o t he cont rary , t he communit y shall consist of all present and fut ure propert y of t he spouses not except ed by law. Art . 200. Neit her spouse may renounce any inherit ance wit hout t he consent of t he ot her. In case of conflict , t he court shall decide t he quest ion, aft er consult ing t he family council, if t here is any . Art . 201. The following shall be excluded from t he communit y : (1) Propert y acquired by grat uit ous t it le by eit her spouse, when it is provided by t he donor or t est at or t hat it shall not become a part of t he communit y ; (2) Propert y inherit ed by eit her husband or wife t hrough t he deat h of a child by a former marriage, t here being brot hers or sist ers of t he full blood of t he deceased child; (3) A port ion of t he propert y of eit her spouse equivalent t o t he presumpt ive legit ime of t he children by a former marriage; (4) Personal belongings of eit her spouse. However, all t he fruit s and income of t he foregoing classes of propert y shall be included in t he communit y . Art . 202. Ant e-nupt ial debt s of eit her spouse shall not be paid from t he communit y , unless t he same have redounded t o t he benefit of t he family . Art . 203. Debt s cont ract ed by bot h spouses or by one of t hem wit h t he consent of t he ot her shall be paid from t he communit y . If t he common propert y is insufficient t o cover common debt s, t he same may be enforced against t he separat e propert y of t he spouses, who shall be equally liable. Art . 204. Debt s cont ract ed by eit her spouse wit hout t he consent of t he ot her shall be chargeable against t he communit y t o t he ext ent t hat t he family may have been benefit ed t hereby . Art . 205. Indemnit ies t hat must be paid by eit her spouse on account of a crime or of a quasi-delict shall be paid from t he common asset s, wit hout any obligat ion t o make reimbursement . Art . 206. The ownership, administ rat ion, possession and enjoy ment of t he common propert y belong t o bot h spouses joint ly . In case of disagreement , t he court s shall set t le t he difficult y . Art . 207 . Neit her spouse may alienat e or encumber any common propert y wit hout t he consent of t he ot her. In case of unjust ifiable refusal by t he ot her spouse, t he court s may grant t he necessary consent . Art . 208. The absolut e communit y of propert y shall be dissolved on any of t he grounds specified in Art icle 17 5.
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Art . 209. When t here is a separat ion in fact bet ween husband and wife, wit hout judicial approval, t he provisions of Art icle 17 8 shall apply . Art . 210. Upon t he dissolut ion and liquidat ion of t he communit y , t he net asset s shall be divided equally bet ween t he husband and t he wife or t heir heirs. In case of legal separat ion or annulment of marriage, t he provisions of Art icles 17 6 and 17 7 shall apply t o t he net profit s acquired during t he marriage. Art . 211. Liquidat ion of t he absolut e communit y shall be governed by t he Rules of Court on t he administ rat ion of t he est at e of deceased persons. CHAPTER 7 SY STEM OF COMPLETE SEPARATION OF PROPERTY (n ) Art . 212. Should t he fut ure spouses agree in t he marriage set t lement s t hat t heir propert y relat ions during marriage shall be based upon t he sy st em of complet e separat ion of propert y , t he following provisions shall supplement t he marriage set t lement s. Art . 213. Separat ion of propert y may refer t o present or fut ure propert y or bot h. It may be t ot al or part ial. In t he lat t er case, t he propert y not agreed upon as separat e shall pert ain t o t he conjugal part nership of gains. Art . 214. Each spouse shall own, dispose of, possess, administ er and enjoy his or her own separat e est at e, wit hout t he consent of t he ot her. All earnings from any profession, business or indust ry shall likewise belong t o each spouse. Art . 215. Each spouse shall proport ionat ely bear t he family expenses. Tit le VII. - THE FAMILY (n ) CHAPTER 1 THE FAMILY AS AN INSTITUTION Art . 216. The family is a basic social inst it ut ion which public policy cherishes and prot ect s. Art . 217 . Family relat ions shall include t hose: (1) Bet ween husband and wife; (2) Bet ween parent and child; (3) Among ot her ascendant s and t heir descendant s; (4) Among brot hers and sist ers. Art . 218. The law governs family relat ions. No cust om, pract ice or agreement which is dest ruct ive of t he family shall be recognized or given any effect . Art . 219. Mut ual aid, bot h moral and mat erial, shall be rendered among members of t he same family . Judicial and administ rat ive officials shall fost er t his mut ual assist ance. Art . 220. In case of doubt , all presumpt ions favor t he solidarit y of t he family . Thus, every int endment of law or fact s leans t oward t he validit y of marriage, t he indissolubilit y of t he marriage bonds, t he legit imacy of children, t he communit y of propert y during marriage, t he aut horit y of parent s over t heir children, and t he validit y of defense for any member of t he family in case of unlawful aggression. Art . 221. The following shall be void and of no effect : (1) Any cont ract for personal separat ion bet ween husband and wife; (2) Every ext ra-judicial agreement , during marriage, for t he dissolut ion of t he conjugal part nership of gains or of t he absolut e communit y of propert y bet ween husband and wife; (3) Every collusion t o obt ain a decree of legal separat ion, or of annulment of marriage; (4) Any simulat ed alienat ion of propert y wit h int ent t o deprive t he compulsory heirs of t heir legit ime. Art . 222. No suit shall be filed or maint ained bet ween members of t he same family unless it should appear t hat earnest effort s t oward a compromise have been made, but t hat t he same have failed, subject t o t he limit at ions in Art icle 2035. CHAPTER 2 THE FAMILY HOME (n )
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SECTION 1. - General Provisions Art . 223. The family home is t he dwelling house where a person and his family reside, and t he land on which it is sit uat ed. If const it ut ed as herein provided, t he family home shall be exempt from execut ion, forced sale or at t achment , except as provided in Art icles 232 and 243. Art . 224. The family home may be est ablished judicially or ext rajudicially . SECTION 2. - Judicial Const it ut ion of t he Family Home Art . 225. The family home may be const it ut ed by a verified pet it ion t o t he Court of First Inst ance by t he owner of t he propert y , and by approval t hereof by t he court . Art . 226. The following shall be beneficiaries of t he family home: (1) The person est ablishing t he same; (2) His or her spouse; (3) His or her parent s, ascendant s, descendant s, brot hers and sist ers, whet her t he relat ionship be legit imat e or ot herwise, who are living in t he family home and who depend upon him for support . Art . 227 . The family home may also be set up by an unmarried person who is t he head of a family or household. Art . 228. If t he pet it ioner is married, t he family home may be select ed from t he conjugal part nership or communit y propert y , or from t he separat e propert y of t he husband, or, wit h t he consent of t he wife, from her paraphernal propert y . Art . 229. The pet it ion shall cont ain t he following part iculars: (1) Descript ion of t he propert y ; (2) An est imat e of it s act ual value; (3) A st at ement t hat t he pet it ioner is act ually residing in t he premises; (4) The encumbrances t hereon; (5) The names and addresses of all t he credit ors of t he pet it ioner and of all mort gagees and ot her persons who have an int erest in t he propert y ; (6) The names of t he ot her beneficiaries specified in Art icle 226. Art . 230. Credit ors, mort gagees and all ot her persons who have an int erest in t he est at e shall be not ified of t he pet it ion, and given an opport unit y t o present t heir object ions t heret o. The pet it ion shall, moreover, be published once a week for t hree consecut ive weeks in a newspaper of general circulat ion. Art . 231. If t he court finds t hat t he act ual value of t he proposed family home does not exceed t went y t housand pesos, or t hirt y t housand pesos in chart ered cit ies, and t hat no t hird person is prejudiced, t he pet it ion shall be approved. Should any credit or whose claim is unsecured, oppose t he est ablishment of t he family home, t he court shall grant t he pet it ion if t he debt or gives sufficient securit y for t he debt . Art . 232. The family home, aft er it s creat ion by virt ue of judicial approval, shall be exempt from execut ion, forced sale, or at t achment , except : (1) For nonpay ment of t axes; or (2) In sat isfact ion of a judgment on a debt secured by a mort gage const it ut ed on t he immovable before or aft er t he est ablishment of t he family home. In case of insolvency of t he person const it ut ing t he family home, t he propert y shall not be considered one of t he asset s t o be t aken possession of by t he assignee for t he benefit of credit ors. Art . 233. The order of t he court approving t he est ablishment of t he family home shall be recorded in t he Regist ry of Propert y . Art . 234. When t here is danger t hat a person obliged t o give support may lose his or her fort une because of grave mismanagement or on account of riot ous living, his or her spouse, if any , and a majorit y of t hose ent it led t o be support ed by him or by her may pet it ion t he Court of First Inst ance for t he creat ion of t he family home. Art . 235. The family home may be sold, alienat ed or encumbered by t he person who has const it ut ed t he same, wit h t he consent of his or her spouse, and wit h t he approval of t he court . However, t he family home shall under no circumst ances be donat ed as long as t here are beneficiaries. In case of sale, t he price or such port ion t hereof as may be
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det ermined by t he court shall be used in acquiring propert y which shall be formed int o a new family home. Any sum of money obt ained t hrough an encumbrance on t he family home shall be used in t he int erest of t he beneficiaries. The court shall t ake measures t o implement t he last t wo provisions. Art . 236. The family home may be dissolved upon t he pet it ion of t he person who has const it ut ed t he same, wit h t he writ t en consent of his or her spouse and of at least one half of all t he ot her beneficiaries who are eight een y ears of age or over. The court may grant t he pet it ion if it is sat isfact orily shown t hat t he best int erest of t he family requires t he dissolut ion of t he family home. Art . 237 . In case of legal separat ion or annulment of marriage, t he family home shall be dissolved, and t he propert y shall cease t o be exempt from execut ion, forced sale or at t achment . Art . 238. Upon t he deat h of t he person who has set up t he family home, t he same shall cont inue, unless he desired ot herwise in his will. The heirs cannot ask for it s part it ion during t he first t en y ears following t he deat h of t he person const it ut ing t he same, unless t he court finds powerful reasons t herefor. Art . 239. The family home shall not be subject t o pay ment of t he debt s of t he deceased, unless in his will t he cont rary is st at ed. However, t he claims ment ioned in Art icle 232 shall not be adversely affect ed by t he deat h of t he person who has est ablished t he family home. SECTION 3. - Ext ra-judicial Creat ion of t he Family Home Art . 240. The family home may be ext rajudicially const it ut ed by recording in t he Regist ry of Propert y a public inst rument wherein a person declares t hat he t hereby est ablishes a family home out of a dwelling place wit h t he land on which it is sit uat ed. Art . 241. The declarat ion set t ing up t he family home shall be under oat h and shall cont ain: (1) A st at ement t hat t he claimant is t he owner of, and is act ually residing in t he premises; (2) A descript ion of t he propert y ; (3) An est imat e of it s act ual value; and (4) The names of t he claimant 's spouse and t he ot her beneficiaries ment ioned in Art icle 226. Art . 242. The recording in t he Regist ry of Propert y of t he declarat ion referred t o in t he t wo preceding art icles is t he operat ive act which creat es t he family home. Art . 243. The family home ext rajudicially formed shall be exempt from execut ion, forced sale or at t achment , except : (1) For nonpay ment of t axes; (2) For debt s incurred before t he declarat ion was recorded in t he Regist ry of Propert y ; (3) For debt s secured by mort gages on t he premises before or aft er such record of t he declarat ion; (4) For debt s due t o laborers, mechanics, archit ect s, builders, mat erial-men and ot hers who have rendered service or furnished mat erial for t he prosecut ion of t he building. Art . 244. The provisions of Art icles 226 t o 228 and 235 t o 238 are likewise applicable t o family homes ext rajudicially est ablished. Art . 245. Upon t he deat h of t he person who has ext rajudicially const it ut ed t he family home, t he propert y shall not be liable for his debt s ot her t han t hose ment ioned in Art icle 243. However, he may provide in his will t hat t he family home shall be subject t o pay ment of debt s not specified in Art icle 243. Art . 246. No declarat ion for t he ext rajudicial est ablishment of t he family home shall be recorded in t he Regist ry of Propert y if t he est imat ed act ual value of t he building and t he land exceeds t he amount st at ed in Art icle 231. Art . 247 . When a credit or whose claim is not ment ioned in Art icle 243 obt ains a judgment in his favor, and he has reasonable grounds t o believe t hat t he family home of t he judgment debt or is wort h more t han t he amount ment ioned in Art icle 231, he may apply t o t he C ourt of First Inst ance for an order direct ing t he sale of t he propert y under execut ion. Art . 248. The hearing on t he pet it ion, appraisal of t he value of t he family home, t he sale under execut ion and ot her mat t ers relat ive t o t he proceedings shall be governed by such provisions in t he Rules of Court as t he Supreme Court shall promulgat e on t he subject , provided t hey are not inconsist ent wit h t his Code. Art . 249. At t he sale under execut ion referred t o in t he t wo preceding art icles, no bid shall be considered unless it exceeds t he amount specified in Art icle 231. The proceeds of t he sale shall be applied in t he following order: (1) To t he amount ment ioned in Art icle 231;
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(2) To t he judgment and t he cost s. The excess, if any , belongs t o t he person const it ut ing t he family home. Art . 250. The amount ment ioned in Art icle 231 t hus received by t he person who has est ablished t he family home, or as much t hereof as t he court may det ermine, shall be invest ed in const it ut ion of a new family home. The court shall t ake measures t o enforce t his provision. Art . 251. In case of insolvency of t he person creat ing t he family home, t he claims specified in Art icle 243 may be sat isfied not wit hst anding t he insolvency proceedings. If t he assignee has reasonable grounds t o believe t hat t he act ual value of t he family home exceeds t he amount fixed in Art icle 231, he may t ake act ion under t he provisions of Art icles 247 , 248 and 249. CHAPTER 3 THE FAMILY COUNCIL (n ) Art . 252. The Court of First Inst ance may , upon applicat ion of any member of t he family , a relat ive, or a friend, appoint a family council, whose dut y it shall be t o advise t he court , t he spouses, t he parent s, guardians and t he family on import ant family quest ions. Art . 253. The family council shall be composed of five members, who shall be relat ives of t he part ies concerned. But t he court may appoint one or t wo friends of t he family . Art . 254. The family council shall elect it s chairman, and shall meet at t he call of t he lat t er or upon order of t he court . Tit le VIII. - PATERNITY AND FILIATION CHAPTER 1 LEGITIMATE CHILDREN Art . 255. Children born aft er one hundred and eight y day s following t he celebrat ion of t he marriage, and before t hree hundred day s following it s dissolut ion or t he separat ion of t he spouses shall be presumed t o be legit imat e. Against t his presumpt ion no evidence shall be admit t ed ot her t han t hat of t he phy sical impossibilit y of t he husband's having access t o his wife wit hin t he first one hundred and t went y day s of t hree hundred which preceded t he birt h of t he child. This phy sical impossibilit y may be caused: (1) By t he impot ence of t he husband; (2) By t he fact t hat t he husband and wife were living separat ely , in such a way t hat access was not possible; (3) By t he serious illness of t he husband. (1 08a ) Art . 256. The child shall be presumed legit imat e, alt hough t he mot her may have declared against it s legit imacy or may have been sent enced as an adult eress. (1 09) Art . 257 . Should t he wife commit adult ery at or about t he t ime of t he concept ion of t he child, but t here was no phy sical impossibilit y of access bet ween her and her husband as set fort h in Art icle 255, t he child is prima facie presumed t o be illegit imat e if it appears highly improbable, for et hnic reasons, t hat t he child is t hat of t he husband. For t he purposes of t his art icle, t he wife's adult ery need not be proved in a criminal case. (n ) Art . 258. A child born wit hin one hundred eight y day s following t he celebrat ion of t he marriage is prima facie presumed t o be legit imat e. Such a child is conclusively presumed t o be legit imat e in any of t hese cases: (1) If t he husband, before t he marriage, knew of t he pregnancy of t he wife; (2) If he consent ed, being present , t o t he put t ing of his surname on t he record of birt h of t he child; (3) If he expressly or t acit ly recognized t he child as his own. (1 1 0a ) Art . 259. If t he marriage is dissolved by t he deat h of t he husband, and t he mot her cont ract ed anot her marriage wit hin t hree hundred day s following such deat h, t hese rules shall govern: (1) A child born before one hundred eight y day s aft er t he solemnizat ion of t he subsequent marriage is disput ably presumed t o have been conceived during t he former marriage, provided it be born wit hin t hree hundred day s aft er t he deat h of t he former husband: (2) A child born aft er one hundred eight y day s following t he celebrat ion of t he subsequent marriage is prima
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facie presumed t o have been conceived during such marriage, even t hough it be born wit hin t he t hree hundred day s aft er t he deat h of t he former husband. (n ) Art . 260. If aft er a judgment annulling a marriage, t he former wife should believe herself t o be pregnant by t he former husband, she shall, wit hin t hirt y day s from t he t ime she became aware of her pregnancy , not ify t he former husband or his heirs of t hat fact . He or his heirs may ask t he court t o t ake measures t o prevent a simulat ion of birt h. The same obligat ion shall devolve upon a widow who believes herself t o have been left pregnant by t he deceased husband, or upon t he wife who believes herself t o be pregnant by her husband from whom she has been legally separat ed. (n ) Art . 261. There is no presumpt ion of legit imacy or illegit imacy of a child born aft er t hree hundred day s following t he dissolut ion of t he marriage or t he separat ion of t he spouses. Whoever alleges t he legit imacy or t he illegit imacy of such child must prove his allegat ion. (n ) Art . 262. The heirs of t he husband may impugn t he legit imacy of t he child only in t he following cases: (1) If t he husband should die before t he expirat ion of t he period fixed for bringing his act ion; (2) If he should die aft er t he filing of t he complaint , wit hout having desist ed from t he same; (3) If t he child was born aft er t he deat h of t he husband. (1 1 2) Art . 263. The act ion t o impugn t he legit imacy of t he child shall be brought wit hin one y ear from t he recording of t he birt h in t he Civil Regist er, if t he husband should be in t he same place, or in a proper case, any of his heirs. If he or his heirs are absent , t he period shall be eight een mont hs if t hey should reside in t he Philippines; and t wo y ears if abroad. If t he birt h of t he child has been concealed, t he t erm shall be count ed from t he discovery of t he fraud. (1 1 3a ) Art . 264. Legit imat e children shall have t he right : (1) To bear t he surnames of t he fat her and of t he mot her; (2) To receive support from t hem, from t heir ascendant s and in a proper case, from t heir brot hers and sist ers, in conformit y wit h Art icle 291; (3) To t he legit ime and ot her successional right s which t his Code recognizes in t heir favor. (1 1 4) CHAPTER 2 PROOF OF FILIATION OF LEGITIMATE CHILDREN Art . 265. The filiat ion of legit imat e children is proved by t he record of birt h appearing in t he Civil Regist er, or by an aut hent ic document or a final judgment . (1 1 5) Art . 266. In t he absence of t he t it les indicat ed in t he preceding art icle, t he filiat ion shall be proved by t he cont inuous possession of st at us of a legit imat e child. (1 1 6) Art . 267 . In t he absence of a record of birt h, aut hent ic document , final judgment or possession of st at us, legit imat e filiat ion may be proved by any ot her means allowed by t he Rules of Court and special laws. (1 1 7a ) Art . 268. The act ion t o claim his legit imacy may be brought by t he child during all his lifet ime, and shall be t ransmit t ed t o his heirs if he should die during his minorit y or in a st at e of insanit y . In t hese cases t he heirs shall have a period of five y ears wit hin which t o inst it ut e t he act ion. The act ion already commenced by t he child is t ransmit t ed upon his deat h t o t he heirs, if t he proceeding has not y et lapsed. (1 1 8) CHAPTER 3 LEGITIMATED CHILDREN Art . 269. Only nat ural children can be legit imat ed. Children born out side wedlock of parent s who, at t he t ime of t he concept ion of t he former, were not disqualified by any impediment t o marry each ot her, are nat ural. (1 1 9a ) Art . 27 0. Legit imat ion shall t ake place by t he subsequent marriage bet ween t he parent s. (1 20a ) Art . 27 1. Only nat ural children who have been recognized by t he parent s before or aft er t he celebrat ion of t he marriage, or have been declared nat ural children by final judgment , may be considered legit imat ed by subsequent marriage. If a nat ural child is recognized or judicially declared as nat ural, such recognit ion or declarat ion shall ext end t o his or her brot hers or sist ers of t he full blood: Provided, That t he consent of t he lat t er shall be implied if t hey do not impugn
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t he recognit ion wit hin four y ears from t he t ime of such recognit ion, or in case t hey are minors, wit hin four y ears following t he at t ainment of majorit y . (1 21 a ) Art . 27 2. Children who are legit imat ed by subsequent marriage shall enjoy t he same right s as legit imat e children.
(1 22)
Art . 27 3. Legit imat ion shall t ake effect from t he t ime of t he child's birt h. (1 23a ) Art . 27 4. The legit imat ion of children who died before t he celebrat ion of t he marriage shall benefit t heir descendant s.
(1 24)
Art . 27 5. Legit imat ion may be impugned by t hose who are prejudiced in t heir right s, when it t akes place in favor of t hose who do not have t he legal condit ion of nat ural children or when t he requisit es laid down in t his Chapt er are not complied wit h. (1 28a ) CHAPTER 4 ILLEGITIMATE CHILDREN SECTION 1. - Recognit ion of Nat ural Children Art . 27 6. A nat ural child may be recognized by t he fat her and mot her joint ly , or by only one of t hem. (1 29) Art . 27 7 . In case t he recognit ion is made by only one of t he parent s, it shall be presumed t hat t he child is nat ural, if t he parent recognizing it had legal capacit y t o cont ract marriage at t he t ime of t he concept ion. (1 30) Art . 27 8. Recognit ion shall be made in t he record of birt h, a will, a st at ement before a court of record, or in any aut hent ic writ ing. (1 31 a ) Art . 27 9. A minor who may not cont ract marriage wit hout parent al consent cannot acknowledge a nat ural child, unless t he parent or guardian approves t he acknowledgment or unless t he recognit ion is made in a will. (n ) Art . 280. When t he fat her or t he mot her makes t he recognit ion separat ely , he or she shall not reveal t he name of t he person wit h whom he or she had t he child; neit her shall he or she st at e any circumst ance whereby t he ot her parent may be ident ified. (1 32a ) Art . 281. A child who is of age cannot be recognized wit hout his consent . When t he recognit ion of a minor does not t ake place in a record of birt h or in a will, judicial approval shall be necessary . A minor can in any case impugn t he recognit ion wit hin four y ears following t he at t ainment of his majorit y . (1 33a ) Art . 282. A recognized nat ural child has t he right : (1) To bear t he surname of t he parent recognizing him: (2) To receive support from such parent , in conformit y wit h art icle 291; (3) To receive, in a proper case, t he heredit ary port ion which is det ermined in t his Code. (1 34) Art . 283. In any of t he following cases, t he fat her is obliged t o recognize t he child as his nat ural child: (1) In cases of rape, abduct ion or seduct ion, when t he period of t he offense coincides more or less wit h t hat of t he concept ion; (2) When t he child is in cont inuous possession of st at us of a child of t he alleged fat her by t he direct act s of t he lat t er or of his family ; (3) When t he child was conceived during t he t ime when t he mot her cohabit ed wit h t he supposed fat her; (4) When t he child has in his favor any evidence or proof t hat t he defendant is his fat her. (n ) Art . 284. The mot her is obliged t o recognize her nat ural child: (1) In any of t he cases referred t o in t he preceding art icle, as bet ween t he child and t he mot her; (2) When t he birt h and t he ident it y of t he child are clearly proved. (1 36a ) Art . 285. The act ion for t he recognit ion of nat ural children may be brought only during t he lifet ime of t he presumed parent s, except in t he following cases: (1) If t he fat her or mot her died during t he minorit y of t he child, in which case t he lat t er may file t he act ion before t he expirat ion of four y ears from t he at t ainment of his majorit y ;
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(2) If aft er t he deat h of t he fat her or of t he mot her a document should appear of which not hing had been heard and in which eit her or bot h parent s recognize t he child. In t his case, t he act ion must be commenced wit hin four y ears from t he finding of t he document . (1 37a ) Art . 286. The recognit ion made in favor of a child who does not possess all t he condit ions st at ed in Art icle 269, or in which t he requirement s of t he law have not been fulfilled, may be impugned by t hose who are prejudiced by such recognit ion. (1 37) SECTION 2. - Ot her Illegit imat e Children Art . 287 . Illegit imat e children ot her t han nat ural in accordance wit h Art icle 269 and ot her t han nat ural children by legal fict ion are ent it led t o support and such successional right s as are grant ed in t his Code. (n ) Art . 288. Minor children ment ioned in t he preceding art icle are under t he parent al aut horit y of t he mot her. (n ) Art . 289. Invest igat ion of t he pat ernit y or mat ernit y of children ment ioned in t he t wo preceding art icles is permit t ed under t he circumst ances specified in Art icles 283 and 284. (n ) Tit le IX. - SUPPORT Art . 290. Support is every t hing t hat is indispensable for sust enance, dwelling, clot hing and medical at t endance, according t o t he social posit ion of t he family . Support also includes t he educat ion of t he person ent it led t o be support ed unt il he complet es his educat ion or t raining for some profession, t rade or vocat ion, even bey ond t he age of majorit y . (1 24a ) Art . 291. The following are obliged t o support each ot her t o t he whole ext ent set fort h in t he preceding art icle: (1) The spouses; (2) Legit imat e ascendant s and descendant s; (3) Parent s and acknowledged nat ural children and t he legit imat e or illegit imat e descendant s of t he lat t er; (4) Parent s and nat ural children by legal fict ion and t he legit imat e and illegit imat e descendant s of t he lat t er; (5) Parent s and illegit imat e children who are not nat ural. Brot hers and sist ers owe t heir legit imat e and nat ural brot hers and sist ers, alt hough t hey are only of t he half-blood, t he necessaries for life, when by a phy sical or ment al defect , or any ot her cause not imput able t o t he recipient s, t he lat t er cannot secure t heir subsist ence. This assist ance includes, in a proper case, expenses necessary for element ary educat ion and for professional or vocat ional t raining. (1 43a ) Art . 292. During t he proceedings for legal separat ion, or for annulment of marriage, t he spouses and children, shall be support ed from t he conjugal part nership propert y . Aft er t he final judgment of legal separat ion, or of annulment of marriage, t he obligat ion of mut ual support bet ween t he spouses ceases. However, in case of legal separat ion, t he court may order t hat t he guilt y spouse shall give support t o t he innocent one, t he judgment specify ing t he t erms of such order. (n ) Art . 293. In an act ion for legal separat ion or annulment of marriage, at t orney 's fees and expenses for lit igat ion shall be charged t o t he conjugal part nership propert y , unless t he act ion fails. (n ) Art . 294. The claim for support , when proper and t wo or more persons are obliged t o give it , shall be made in t he following order: (1) From t he spouse; (2) From t he descendant s of t he nearest degree; (3) From t he ascendant s, also of t he nearest degree; (4) From t he brot hers and sist ers. Among descendant s and ascendant s t he order in which t hey are called t o t he int est at e succession of t he person who has a right t o claim support shall be observed. (1 44) Art . 295. When t he obligat ion t o give support falls upon t wo or more persons, t he pay ment of t he same shall be divided bet ween t hem in proport ion t o t he resources of each. However, in case of urgent need and by special circumst ances, t he judge may order only one of t hem t o furnish t he support provisionally , wit hout prejudice t o his right t o claim from t he ot her obligors t he share due from t hem.
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When t wo or more recipient s at t he same t ime claim support from one and t he same person legally obliged t o give it , and t he lat t er should not have sufficient means t o sat isfy all, t he order est ablished in t he preceding art icle shall be followed, unless t he concurrent obligees should be t he spouse and a child subject t o parent al aut horit y , in which case t he lat t er shall be preferred. (1 45) Art . 296. The amount of support , in t he cases referred t o in t he five numbers of art icle 291, shall be in proport ion t o t he resources or means of t he giver and t o t he necessit ies of t he recipient . (1 46a ) Art . 297 . Support in t he cases referred t o in t he preceding art icle shall be reduced or increased proport ionat ely , according t o t he reduct ion or increase of t he needs of t he recipient and t he resources of t he person obliged t o furnish t he same. (1 47) Art . 298. The obligat ion t o give suppor t shall be demandable from t he t ime t he person who has a right t o receive t he same needs it for maint enance, but it shall not be paid except from t he dat e it is ext rajudicially demanded. Pay ment shall be made mont hly in advance, and when t he recipient dies, his heirs shall not be obliged t o ret urn what he has received in advance. (1 48a ) Art . 299. The person obliged t o give support may , at his opt ion, fulfill his obligat ion eit her by pay ing t he allowance fixed, or by receiving and maint aining in his house t he person who has a right t o receive support . The lat t er alt ernat ive cannot be availed of in case t here is a moral or legal obst acle t heret o. (1 49a ) Art . 300. The obligat ion t o furnish support ceases upon t he deat h of t he obligor, even if he may be bound t o give it in compliance wit h a final judgment . (1 50) Art . 301. The right t o receive support cannot be renounced; nor can it be t ransmit t ed t o a t hird person. Neit her can it be compensat ed wit h what t he recipient owes t he obligor. However, support in arrears may be compensat ed and renounced, and t he right t o demand t he same may be t ransmit t ed by onerous or grat uit ous t it le. (1 51 ) Art . 302. Neit her t he right t o receive legal support nor any money or propert y obt ained as such support or any pension or grat uit y from t he government is subject t o at t achment or execut ion. (n ) Art . 303. The obligat ion t o give support shall also cease: (1) Upon t he deat h of t he recipient ; (2) When t he resources of t he obligor have been reduced t o t he point where he cannot give t he support wit hout neglect ing his own needs and t hose of his family ; (3) When t he recipient may engage in a t rade, profession, or indust ry , or has obt ained work, or has improved his fort une in such a way t hat he no longer needs t he allowance for his subsist ence; (4) When t he recipient , be he a forced heir or not , has commit t ed some act which gives rise t o disinherit ance; (5) When t he recipient is a descendant , brot her or sist er of t he obligor and t he need for support is caused by his or her bad conduct or by t he lack of applicat ion t o work, so long as t his cause subsist s. (1 52a ) Art . 304. The foregoing provisions shall be applicable t o ot her cases where, in virt ue of t his Code or of any ot her law, by will, or by st ipulat ion t here is a right t o receive support , save what is st ipulat ed, ordered by t he t est at or or provided by law for t he special case. (1 53a ) Tit le X. - FUNERALS (n) Art . 305. The dut y and t he right t o make arrangement s for t he funeral of a relat ive shall be in accordance wit h t he order est ablished for support , under Art icle 294. In case of descendant s of t he same degree, or of brot hers and sist ers, t he oldest shall be preferred. In case of ascendant s, t he pat ernal shall have a bet t er right . Art . 306. Every funeral shall be in keeping wit h t he social posit ion of t he deceased. Art . 307 . The funeral shall be in accordance wit h t he expressed wishes of t he deceased. In t he absence of such expression, his religious beliefs or affiliat ion shall det ermine t he funeral rit es. In case of doubt , t he form of t he funeral shall be decided upon by t he person obliged t o make arrangement s for t he same, aft er consult ing t he ot her members of t he family . Art . 308. No human remains shall be ret ained, int erred, disposed of or exhumed wit hout t he consent of t he persons ment ioned in art icles 294 and 305. Art . 309. Any person who shows disrespect t o t he dead, or wrongfully int erferes wit h a funeral shall be liable t o t he family of t he deceased for damages, mat erial and moral. Art . 310. The const ruct ion of a t ombst one or mausoleum shall be deemed a part of t he funeral expenses, and shall be
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chargeable t o t he conjugal part nership propert y , if t he deceased is one of t he spouses. Tit le XI. - PARENTAL AUTHORITY CHAPTER 1 GENERAL PROVISIONS Art . 311. The fat her and mot her joint ly exercise parent al aut horit y over t heir legit imat e children who are not emancipat ed. In case of disagreement , t he fat her's decision shall prevail, unless t here is a judicial order t o t he cont rary . Children are obliged t o obey t heir parent s so long as t hey are under parent al power, and t o observe respect and reverence t oward t hem alway s. Recognized nat ural and adopt ed children who are under t he age of majorit y are under t he parent al aut horit y of t he fat her or mot her recognizing or adopt ing t hem, and are under t he same obligat ion st at ed in t he preceding paragraph. Nat ural children by legal fict ion are under t he joint aut horit y of t he fat her and mot her, as provided in t he first paragraph of t his art icle. (1 54a ) Art . 312. Grandparent s shall be consult ed by all members of t he family on all import ant family quest ions. (n ) Art . 313. Parent al aut horit y cannot be renounced or t ransferred, except in cases of guardianship or adopt ion approved by t he court s, or emancipat ion by concession. The court s may , in cases specified by law, deprive parent s of t heir aut horit y . (n ) Art . 314. A foundling shall be under t he parent al aut horit y of t he person or inst it ut ion t hat has reared t he same. (n ) Art . 315. No descendant can be compelled, in a criminal case, t o t est ify against his parent s and ascendant s. (n ) CHAPTER 2 EFFECT OF PARENTAL AUTHORITY UPON THE PERSONS OF THE CHILDREN Art . 316. The fat her and t he mot her have, wit h respect t o t heir unemancipat ed children: (1) The dut y t o support t hem, t o have t hem in t heir company , educat e and inst ruct t hem in keeping wit h t heir means and t o represent t hem in all act ions which may redound t o t heir benefit ; (2) The power t o correct t hem and t o punish t hem moderat ely . (1 55) Art . 317 . The court s may appoint a guardian of t he child' s propert y , or a guardian ad lit em when t he best int erest of t he child so requires. (n ) Art . 318. Upon cause being shown by t he parent s, t he local may or may aid t hem in t he exercise of t heir aut horit y over t he child. If t he child is t o be kept in a children's home or similar inst it ut ion for not more t han one mont h, an order of t he just ice of t he peace or municipal judge shall be necessary , aft er due hearing, where t he child shall be heard. For his purpose, t he court may appoint a guardian ad lit em. (1 56a ) Art . 319. The fat her and t he mot her shall sat isfy t he support for t he det ained child; but t hey shall not have any int ervent ion in t he regime of t he inst it ut ion where t he child is det ained. They may lift t he det ent ion when t hey deem it opport une, wit h t he approval of t he court . (1 58a ) CHAPTER 3 EFFECT OF PARENTAL AUTHORITY ON THE PROPERTY OF THE CHILDREN Art . 320. The fat her, or in his absence t he mot her, is t he legal administ rat or of t he propert y pert aining t o t he child under parent al aut horit y . If t he propert y is wort h more t han t wo t housand pesos, t he fat her or mot her shall give a bond subject t o t he approval of t he Court of First Inst ance. (1 59a ) Art . 321. The propert y which t he unemancipat ed child has acquired or may acquire wit h his work or indust ry , or by any lucrat ive t it le, belongs t o t he child in ownership, and in usufruct t o t he fat her or mot her under whom he is under parent al aut horit y and in whose company he lives; but if t he child, wit h t he parent 's consent , should live independent ly from t hem, he shall be considered as emancipat ed for all purposes relat ive t o said propert y , and he shall have over it dominion, usufruct and administ rat ion. (1 60) Art . 322. A child who earns money or acquires propert y wit h his own work or indust ry shall be ent it led t o a reasonable allowance from t he earnings, in addit ion t o t he expenses made by t he parent s for his support and educat ion. (n )
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Art . 323. The fruit s and int erest of t he child's propert y referred t o in art icle 321 shall be applied first t o t he expenses for t he support and educat ion of t he child. Aft er t hey have been fully met , t he debt s of t he conjugal part nership which have redounded t o t he benefit of t he family may be paid from said fruit s and int erest . (n ) Art . 324. What ever t he child may acquire wit h t he capit al or propert y of t he parent s belongs t o t he lat t er in ownership and in usufruct . But if t he parent s should expressly grant him all or part of t he profit s t hat he may obt ain, such profit s shall not be charged against his legit ime. (1 61 ) Art . 325. The propert y or income donat ed, bequeat hed or devised t o t he unemancipat ed child for t he expenses of his educat ion and inst ruct ion shall pert ain t o him in ownership and usufruct ; but t he fat her or mot her shall administ er t he same, if in t he donat ion or t est ament ary provision t he cont rary has not been st at ed. (1 62) Art . 326. When t he propert y of t he child is wort h more t han t wo t housand pesos, t he fat her or mot her shall be considered a guardian of t he child's propert y , subject t o t he dut ies and obligat ions of guardians under t he Rules of Court . (n ) CHAPTER 4 EXTINGUISHMENT OF PARENTAL AUTHORITY Art . 327 . Parent al aut horit y t erminat es: (1) Upon t he deat h of t he parent s or of t he child; (2) Upon emancipat ion; (3) Upon adopt ion of t he child; (4) Upon t he appoint ment of a general guardian. (1 67a ) Art . 328. The mot her who cont ract s a subsequent marriage loses t he parent al aut horit y over her children, unless t he deceased husband, fat her of t he lat t er, has expressly provided in his will t hat his widow might marry again, and has ordered t hat in such case she should keep and exercise parent al aut horit y over t heir children. The court may also appoint a guardian of t he child's propert y in case t he fat her should cont ract a subsequent marriage. (1 68a ) Art . 329. When t he mot her of an illegit imat e child marries a man ot her t han it s fat her, t he court may appoint a guardian for t he child. (n ) Art . 330. The fat her and in a proper case t he mot her, shall lose aut horit y over t heir children: (1) When by final judgment in a criminal case t he penalt y of deprivat ion of said aut horit y is imposed upon him or her; (2) When by a final judgment in legal separat ion proceedings such loss of aut horit y is declared. (1 69a ) Art . 331. Parent al aut horit y is suspended by t he incapacit y or absence of t he fat her, or in a proper case of t he mot her, judicially declared, and also by civil int erdict ion. (1 70) Art . 332. The court s may deprive t he parent s of t heir aut horit y or suspend t he exercise of t he same if t hey should t reat t heir children wit h excessive harshness or should give t hem corrupt ing orders, counsels, or examples, or should make t hem beg or abandon t hem. In t hese cases, t he court s may also deprive t he parent s in whole or in part , of t he usufruct over t he child's propert y , or adopt such measures as t hey may deem advisable in t he int erest of t he child.
(1 71 a )
Art . 333. If t he widowed mot her who has cont ract ed a subsequent marriage should again become a widow, she shall recover from t his moment her parent al aut horit y over all her unemancipat ed children. (1 72) CHAPTER 5 ADOPTION Art . 334. Every person of age, who is in full possession of his civil right s, may adopt . (1 73a ) Art . 335. The following cannot adopt : (1) Those who have legit imat e, legit imat ed, acknowledged nat ural children, or nat ural children by legal fict ion; (2) The guardian, wit h respect t o t he ward, before t he final approval of his account s; (3) A married person, wit hout t he consent of t he ot her spouse; (4) Non-resident aliens;
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(5) Resident aliens wit h whose government t he Republic of t he Philippines has broken diplomat ic relat ions; (6) Any person who has been convict ed of a crime involving moral t urpit ude, when t he penalt y imposed was six mont hs' imprisonment or more. (1 74a ) Art . 336. The husband and wife may joint ly adopt . Parent al aut horit y shall, in such case, be exercised as if t he child were t heir own by nat ure. (n ) Art . 337 . Any person, even if of age, may be adopt ed, provided t he adopt er is sixt een y ears older. (1 73a ) Art . 338. The following may be adopt ed: (1) The nat ural child, by t he nat ural fat her or mot her; (2) Ot her illegit imat e children, by t he fat her or mot her; (3) A st ep-child, by t he st ep-fat her or st ep-mot her. (n ) Art . 339. The following cannot be adopt ed: (1) A married person, wit hout t he writ t en consent of t he ot her spouse; (2) An alien wit h whose government t he Republic of t he Philippines has broken diplomat ic relat ions; (3) A person who has already been adopt ed. (n ) Art . 340. The writ t en consent of t he following t o t he adopt ion shall be necessary : (1) The person t o be adopt ed, if fourt een y ears of age or over; (2) The parent s, guardian or person in charge of t he person t o be adopt ed. (n ) Art . 341. The adopt ion shall: (1) Give t o t he adopt ed person t he same right s and dut ies as if he were a legit imat e child of t he adopt er: (2) Dissolve t he aut horit y vest ed in t he parent s by nat ure; (3) Make t he adopt ed person a legal heir of t he adopt er; (4) Ent it le t he adopt ed person t o use t he adopt er's surname. (n ) Art . 342. The adopt er shall not be a legal heir of t he adopt ed person, whose parent s by nat ure shall inherit from him.
(1 77a )
Art . 343. If t he adopt er is survived by legit imat e parent s or ascendant s and by an adopt ed person, t he lat t er shall not have more successional right s t han an acknowledged nat ural child. (n ) Art . 344. The adopt er may donat e propert y , by an act int er vivos or by will, t o t he adopt ed person, who shall acquire ownership t hereof. (n ) Art . 345. The proceedings for adopt ion shall be governed by t he Rules of Court insofar as t hey are not in conflict wit h t his Code. (n ) Art . 346. The adopt ion shall be recorded in t he local civil regist er. (1 79a ) Art . 347 . A minor or ot her incapacit at ed person may , t hrough a guardian ad lit em, ask for t he rescission of t he adopt ion on t he same grounds t hat cause t he loss of parent al aut horit y . (n ) Art . 348. The adopt er may pet it ion t he court for revocat ion of t he adopt ion in any of t hese cases: (1) If t he adopt ed person has at t empt ed against t he life of t he adopt er; (2) When t he adopt ed minor has abandoned t he home of t he adopt er for more t han t hree y ears; (3) When by ot her act s t he adopt ed person has definit ely repudiat ed t he adopt ion. (n ) CHAPTER 6 SUBSTITUTE PARENTAL AUTHORITY (n ) Art . 349. The following persons shall exercise subst it ut e parent al aut horit y : (1) Guardians; (2) Teachers and professors;
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(3) Heads of children's homes, orphanages, and similar inst it ut ions; (4) Direct ors of t rade est ablishment s, wit h regard t o apprent ices; (5) Grandparent s; (6) The oldest brot her or sist er. Art . 350. The persons named in t he preceding art icle shall exercise reasonable supervision over t he conduct of t he child. Art . 351. A general guardian or a guardian over t he person shall have t he same aut horit y over t he ward's person as t he parent s. Wit h regard t o t he child's propert y , t he Rules of Court on guardianship shall govern. Art . 352. The relat ions bet ween t eacher and pupil, professor and st udent , are fixed by government regulat ions and t hose of each school or inst it ut ion. In no case shall corporal punishment be count enanced. The t eacher or professor shall cult ivat e t he best pot ent ialit ies of t he heart and mind of t he pupil or st udent . Art . 353. Apprent ices shall be t reat ed humanely . No corporal punishment against t he apprent ice shall be permit t ed. Art . 354. Grandparent s and in t heir default t he oldest brot her or sist er shall exercise parent al aut horit y in case of deat h or absence of t he child's parent s. If t he parent s are living, or if t he child is under guardianship, t he grandparent s may give advice and counsel t o t he child, t o t he parent s or t o t he guardian. Art . 355. Subst it ut e parent al aut horit y shall be exercised by t he grandparent s in t he following order: (1) Pat ernal grandparent s; (2) Mat ernal grandparent s. Tit le XII. - CARE AND EDUCATION OF CHILDREN Art . 356. Every child: (1) Is ent it led t o parent al care; (2) Shall receive at least element ary educat ion; (3) Shall be given moral and civic t raining by t he parent s or guardian; (4) Has a right t o live in an at mosphere conducive t o his phy sical, moral and int ellect ual development . Art . 357 . Every child shall: (1) Obey and honor his parent s or guardian; (2) Respect his grandparent s, old relat ives, and persons holding subst it ut e parent al aut horit y ; (3) Exert his ut most for his educat ion and t raining; (4) Cooperat e wit h t he family in all mat t ers t hat make for t he good of t he same. Art . 358. Every parent and every person holding subst it ut e parent al aut horit y shall see t o it t hat t he right s of t he child are respect ed and his dut ies complied wit h, and shall part icularly , by precept and example, imbue t he child wit h highmindedness, love of count ry , venerat ion for t he nat ional heroes, fidelit y t o democracy as a way of life, and at t achment t o t he ideal of permanent world peace. Art . 359. The government promot es t he full growt h of t he facult ies of every child. For t his purpose, t he government will est ablish, whenever possible: (1) Schools in every barrio, municipalit y and cit y where opt ional religious inst ruct ion shall be t aught as part of t he curriculum at t he opt ion of t he parent or guardian; (2) Puericult ure and similar cent ers; (3) Councils for t he Prot ect ion of Children; and (4) Juvenile court s. Art . 360. The Council for t he Prot ect ion of Children shall look aft er t he welfare of children in t he municipalit y . It shall, among ot her funct ions: (1) Fost er t he educat ion of every child in t he municipalit y ; (2) Encourage t he cult ivat ion of t he dut ies of parent s;
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(3) Prot ect and assist abandoned or mist reat ed children, and orphans; (4) Take st eps t o prevent juvenile delinquency ; (5) Adopt measures for t he healt h of children; (6) Promot e t he opening and maint enance of play grounds; (7 ) Coordinat e t he act ivit ies of organizat ions devot ed t o t he welfare of children, and secure t heir cooperat ion. Art . 361. Juvenile court s will be est ablished, as far as pract icable, in every chart ered cit y or large municipalit y . Art . 362. Whenever a child is found delinquent by any court , t he fat her, mot her, or guardian may in a proper case be judicially admonished. Art . 363. In all quest ions on t he care, cust ody , educat ion and propert y of children t he lat t er's welfare shall be paramount . No mot her shall be separat ed from her child under seven y ears of age, unless t he court finds compelling reasons for such measure. Tit le XIII. - USE OF SURNAMES (n ) Art . 364. Legit imat e and legit imat ed children shall principally use t he surname of t he fat her. Art . 365. An adopt ed child shall bear t he surname of t he adopt er. Art . 366. A nat ural child acknowledged by bot h parent s shall principally use t he surname of t he fat her. If recognized by only one of t he parent s, a nat ural child shall employ t he surname of t he recognizing parent . Art . 367 . Nat ural children by legal fict ion shall principally employ t he surname of t he fat her. Art . 368. Illegit imat e children referred t o in Art icle 287 shall bear t he surname of t he mot her. Art . 369. Children conceived before t he decree annulling a voidable marriage shall principally use t he surname of t he fat her. Art . 37 0. A married woman may use: (1) Her maiden first name and surname and add her husband's surname, or (2) Her maiden first name and her husband's surname or (3) Her husband's full name, but prefixing a word indicat ing t hat she is his wife, such as "Mrs." Art . 37 1. In case of annulment of marriage, and t he wife is t he guilt y part y , she shall resume her maiden name and surname. If she is t he innocent spouse, she may resume her maiden name and surname. However, she may choose t o cont inue employ ing her former husband's surname, unless: (1) The court decrees ot herwise, or (2) She or t he former husband is married again t o anot her person. Art . 37 2. When legal separat ion has been grant ed, t he wife shall cont inue using her name and surname employ ed before t he legal separat ion. Art . 37 3. A widow may use t he deceased husband's surname as t hough he were st ill living, in accordance wit h Art icle 37 0. Art . 37 4. In case of ident it y of names and surnames, t he y ounger person shall be obliged t o use such addit ional name or surname as will avoid confusion. Art . 37 5. In case of ident it y of names and surnames bet ween ascendant s and descendant s, t he word "Junior" can be used only by a son. Grandsons and ot her direct male descendant s shall eit her: (1) Add a middle name or t he mot her's surname, or (2) Add t he Roman Numerals II, III, and so on. Art . 37 6. No person can change his name or surname wit hout judicial aut horit y . Art . 37 7 . Usurpat ion of a name and surname may be t he subject of an act ion for damages and ot her relief. Art . 37 8. The unaut horized or unlawful use of anot her person's surname gives a right of act ion t o t he lat t er. Art . 37 9. The employ ment of pen names or st age names is permit t ed, provided it is done in good fait h and t here is no
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injury t o t hird persons. Pen names and st age names cannot be usurped. Art . 380. Except as provided in t he preceding art icle, no person shall use different names and surnames. Tit le XIV. - ABSENCE CHAPTER 1 PROVISIONAL MEASURES IN CASE OF ABSENCE Art . 381. When a person disappears from his domicile, his whereabout s being unknown, and wit hout leaving an agent t o administ er his propert y , t he judge, at t he inst ance of an int erest ed part y , a relat ive, or a friend, may appoint a person t o represent him in all t hat may be necessary . This same rule shall be observed when under similar circumst ances t he power conferred by t he absent ee has expired.
(1 81 a )
Art . 382. The appoint ment referred t o in t he preceding art icle having been made, t he judge shall t ake t he necessary measures t o safeguard t he right s and int erest s of t he absent ee and shall specify t he powers, obligat ions and remunerat ion of his represent at ive, regulat ing t hem, according t o t he circumst ances, by t he rules concerning guardians. (1 82) Art . 383. In t he appoint ment of a represent at ive, t he spouse present shall be preferred when t here is no legal separat ion. If t he absent ee left no spouse, or if t he spouse present is a minor, any compet ent person may be appoint ed by t he court .
(1 83a )
CHAPTER 2 DECLARATION OF ABSENCE Art . 384. Two y ears having elapsed wit hout any news about t he absent ee or since t he receipt of t he last news, and five y ears in case t he absent ee has left a person in charge of t he administ rat ion of his propert y , his absence may be declared. (1 84) Art . 385. The following may ask for t he declarat ion of absence: (1) The spouse present ; (2) The heirs inst it ut ed in a will, who may present an aut hent ic copy of t he same; (3) The relat ives who may succeed by t he law of int est acy ; (4) Those who may have over t he propert y of t he absent ee some right subordinat ed t o t he condit ion of his deat h.
(1 85)
Art . 386. The judicial declarat ion of absence shall not t ake effect unt il six mont hs aft er it s publicat ion in a newspaper of general circulat ion. (1 86a ) CHAPTER 3 ADMINISTRATION OF THE PROPERTY OF THE ABSENTEE Art . 387 . An administ rat or of t he absent ee's propert y shall be appoint ed in accordance wit h Art icle 383. (1 87a ) Art . 388. The wife who is appoint ed as an administ rat rix of t he husband's propert y cannot alienat e or encumber t he husband's propert y , or t hat of t he conjugal part nership, wit hout judicial aut horit y . (1 88a ) Art . 389. The administ rat ion shall cease in any of t he following cases: (1) When t he absent ee appears personally or by means of an agent ; (2) When t he deat h of t he absent ee is proved and his t est at e or int est at e heirs appear; (3) When a t hird person appears, showing by a proper document t hat he has acquired t he absent ee's propert y by purchase or ot her t it le. In t hese cases t he administ rat or shall cease in t he performance of his office, and t he propert y shall be at t he disposal of t hose who may have a right t heret o. (1 90) CHAPTER 4 PRESUMPTION OF DEATH
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Art . 390. Aft er an absence of seven y ears, it being unknown whet her or not t he absent ee st ill lives, he shall be presumed dead for all purposes, except for t hose of succession. The absent ee shall not be presumed dead for t he purpose of opening his succession t ill aft er an absence of t en y ears. If he disappeared aft er t he age of sevent y -five y ears, an absence of five y ears shall be sufficient in order t hat his succession may be opened. (n ) Art . 391. The following shall be presumed dead for all purposes, including t he division of t he est at e among t he heirs: (1) A person on board a vessel lost during a sea voy age, or an aeroplane which is missing, who has not been heard of for four y ears since t he loss of t he vessel or aeroplane; (2) A person in t he armed forces who has t aken part in war, and has been missing for four y ears; (3) A person who has been in danger of deat h under ot her circumst ances and his exist ence has not been known for four y ears. (n ) Art . 392. If t he absent ee appears, or wit hout appearing his exist ence is proved, he shall recover his propert y in t he condit ion in which it may be found, and t he price of any propert y t hat may have been alienat ed or t he propert y acquired t herewit h; but he cannot claim eit her fruit s or rent s. (1 94) CHAPTER 5 EFFECT OF ABSENCE UPON THE CONTINGENT RIGHTS OF THE ABSENTEE Art . 393. Whoever claims a right pert aining t o a person whose exist ence is not recognized must prove t hat he was living at t he t ime his exist ence was necessary in order t o acquire said right . (1 95) Art . 394. Wit hout prejudice t o t he provision of t he preceding art icle, upon t he opening of a succession t o which an absent ee is called, his share shall accrue t o his co-heirs, unless he has heirs, assigns, or a represent at ive. They shall all, as t he case may be, make an invent ory of t he propert y . (1 96a ) Art . 395. The provisions of t he preceding art icle are underst ood t o be wit hout prejudice t o t he act ion of pet it ion for inherit ance or ot her right s which are vest ed in t he absent ee, his represent at ives or successors in int erest . These right s shall not be ext inguished save by lapse of t ime fixed for prescript ion. In t he record t hat is made in t he Regist ry of t he real est at e which accrues t o t he coheirs, t he circumst ance of it s being subject t o t he provisions of t his art icle shall be st at ed. (1 97) Art . 396. Those who may have ent ered upon t he inherit ance shall appropriat e t he fruit s received in good fait h so long as t he absent ee does not appear, or while his represent at ives or successors in int erest do not bring t he proper act ions.
(1 98)
Tit le XV. - EMANCIPATION AND AGE OF MAJORITY CHAPTER 1 EMANCIPATION Art . 397 . Emancipat ion t akes place: (1) By t he marriage of t he minor; (2) By t he at t ainment of majorit y ; (3) By t he concession of t he fat her or of t he mot her who exercise parent al aut horit y . (31 4) Art . 398. Emancipat ion t reat ed of in No. 3 of t he preceding art icle shall be effect ed in a public inst rument which shall be recorded in t he Civil Regist er, and unless so recorded, it shall t ake no effect against t hird persons. (31 6a ) Art . 399. Emancipat ion by marriage or by volunt ary concession shall t erminat e parent al aut horit y over t he child's person. It shall enable t he minor t o administ er his propert y as t hough he were of age, but he cannot borrow money or alienat e or encumber real propert y wit hout t he consent of his fat her or mot her, or guardian. He can sue and be sued in court only wit h t he assist ance of his fat her, mot her or guardian. (31 7a ) Art . 400. In order t hat emancipat ion by concession of t he fat her or of t he mot her may t ake place, it is required t hat t he minor be eight een y ears of age, and t hat he give his consent t heret o. (31 8) Art . 401. Emancipat ion is final or irrevocable. (31 9a ) CHAPTER 2 AGE OF MAJORITY
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Art . 402. Majorit y commences upon t he at t ainment of t he age of t went y -one y ears. The person who has reached majorit y is qualified for all act s of civil life, save t he except ions est ablished by t his Code in special cases. (320a ) Art . 403. Not wit hst anding t he provisions of t he preceding art icle, a daught er above t went y -one but below t went y t hree y ears of age cannot leave t he parent al home wit hout t he consent of t he fat her or mot her in whose company she lives, except t o become a wife, or when she exercises a profession or calling, or when t he fat her or mot her has cont ract ed a subsequent marriage. (321 a ) Art . 404. An orphan who is minor may , at t he inst ance of any relat ive or ot her person, obt ain emancipat ion by concession upon an order of t he Court of First Inst ance. (322a ) Art . 405. For t he concession and approval referred t o in t he preceding art icle it is necessary : (1) That t he minor be eight een y ears of age; (2) That he consent t heret o; and (3) That t he concession be deemed convenient for t he minor. The concession shall be recorded in t he Civil Regist er. (323a ) Art . 406. The provisions of Art icle 399 are applicable t o an orphan who has been emancipat ed according t o Art icle 404. The court will give t he necessary approval wit h respect t o t he cont ract s ment ioned in Art icle 399. In lit igat ions, a guardian ad lit em for t he minor shall be appoint ed by t he court . (324a ) Tit le XVI. - CIVIL REGISTER Art . 407 . Act s, event s and judicial decrees concerning t he civil st at us of persons shall be recorded in t he civil regist er.
(325a )
Art . 408. The following shall be ent ered in t he civil regist er: (1) Birt hs; (2) marriages; (3) deat hs; (4) legal separat ions; (5) annulment s of marriage; (6) judgment s declaring marriages void from t he beginning; (7 ) legit imat ions; (8) adopt ions; (9) acknowledgment s of nat ural children; (10) nat uralizat ion; (11) loss, or (12) recovery of cit izenship; (13) civil int erdict ion; (14) judicial det erminat ion of filiat ion; (15) volunt ary emancipat ion of a minor; and (16) changes of name. (326a ) Art . 409. In cases of legal separat ion, adopt ion, nat uralizat ion and ot her judicial orders ment ioned in t he preceding art icle, it shall be t he dut y of t he clerk of t he court which issued t he decree t o ascert ain whet her t he same has been regist ered, and if t his has not been done, t o send a copy of said decree t o t he civil regist ry of t he cit y or municipalit y where t he court is funct ioning. (n ) Art . 410. The books making up t he civil regist er and all document s relat ing t heret o shall be considered public document s and shall be prima facie evidence of t he fact s t herein cont ained. (n ) Art . 411. Every civil regist rar shall be civilly responsible for any unaut horized alt erat ion made in any civil regist er, t o any person suffering damage t hereby . However, t he civil regist rar may exempt himself from such liabilit y if he proves t hat he has t aken every reasonable precaut ion t o prevent t he unlawful alt erat ion. (n ) Art . 412. No ent ry in a civil regist er shall be changed or correct ed, wit hout a judicial order. (n ) Art . 413. All ot her mat t ers pert aining t o t he regist rat ion of civil st at us shall be governed by special laws. (n )
BOOK II PROPERTY , OWNERSHIP, AND ITS MODIFICATIONS

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Tit le I. - CLASSIFICATION OF PROPERTY PRELIMINARY PROVISIONS Art . 414. All t hings which are or may be t he object of appropriat ion are considered eit her: (1) Immovable or real propert y ; or (2) Movable or personal propert y . (333) CHAPTER 1 IMMOVABLE PROPERTY Art . 415. The following are immovable propert y : (1) Land, buildings, roads and const ruct ions of all kinds adhered t o t he soil; (2) Trees, plant s, and growing fruit s, while t hey are at t ached t o t he land or form an int egral part of an immovable; (3) Every t hing at t ached t o an immovable in a fixed manner, in such a way t hat it cannot be separat ed t herefrom wit hout breaking t he mat erial or det eriorat ion of t he object ; (4) St at ues, reliefs, paint ings or ot her object s for use or ornament at ion, placed in buildings or on lands by t he owner of t he immovable in such a manner t hat it reveals t he int ent ion t o at t ach t hem permanent ly t o t he t enement s; (5) Machinery , recept acles, inst rument s or implement s int ended by t he owner of t he t enement for an indust ry or works which may be carried on in a building or on a piece of land, and which t end direct ly t o meet t he needs of t he said indust ry or works; (6) Animal houses, pigeon-houses, beehives, fish ponds or breeding places of similar nat ure, in case t heir owner has placed t hem or preserves t hem wit h t he int ent ion t o have t hem permanent ly at t ached t o t he land, and forming a permanent part of it ; t he animals in t hese places are included; (7 ) Fert ilizer act ually used on a piece of land; (8) Mines, quarries, and slag dumps, while t he mat t er t hereof forms part of t he bed, and wat ers eit her running or st agnant ; (9) Docks and st ruct ures which, t hough float ing, are int ended by t heir nat ure and object t o remain at a fixed place on a river, lake, or coast ; (10) Cont ract s for public works, and servit udes and ot her real right s over immovable propert y . (334a ) CHAPTER 2 MOVABLE PROPERTY Art . 416. The following t hings are deemed t o be personal propert y : (1) Those movables suscept ible of appropriat ion which are not included in t he preceding art icle; (2) Real propert y which by any special provision of law is considered as personal propert y ; (3) Forces of nat ure which are brought under cont rol by science; and (4) In general, all t hings which can be t ransport ed from place t o place wit hout impairment of t he real propert y t o which t hey are fixed. (335a ) Art . 417 . The following are also considered as personal propert y : (1) Obligat ions and act ions which have for t heir object movables or demandable sums; and (2) Shares of st ock of agricult ural, commercial and indust rial ent it ies, alt hough t hey may have real est at e.
(336a )
Art . 418. Movable propert y is eit her consumable or nonconsumable. To t he first class belong t hose movables which cannot be used in a manner appropriat e t o t heir nat ure wit hout t heir being consumed; t o t he second class belong all t he ot hers. (337)
37/187
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CHAPTER 3 PROPERTY IN RELATION TO THE PERSON TO WHOM IT BELONGS Art . 419. Propert y is eit her of public dominion or of privat e ownership. (338) Art . 420. The following t hings are propert y of public dominion: (1) Those int ended for public use, such as roads, canals, rivers, t orrent s, port s and bridges const ruct ed by t he St at e, banks, shores, roadst eads, and ot hers of similar charact er; (2) Those which belong t o t he St at e, wit hout being for public use, and are int ended for some public service or for t he development of t he nat ional wealt h. (339a ) Art . 421. All ot her propert y of t he St at e, which is not of t he charact er st at ed in t he preceding art icle, is pat rimonial propert y . (340a ) Art . 422. Propert y of public dominion, when no longer int ended for public use or for public service, shall form part of t he pat rimonial propert y of t he St at e. (341 a ) Art . 423. The propert y of provinces, cit ies, and municipalit ies is divided int o propert y for public use and pat rimonial propert y . (343) Art . 424. Propert y for public use, in t he provinces, cit ies, and municipalit ies, consist of t he provincial roads, cit y st reet s, municipal st reet s, t he squares, fount ains, public wat ers, promenades, and public works for public service paid for by said provinces, cit ies, or municipalit ies. All ot her propert y possessed by any of t hem is pat rimonial and shall be governed by t his Code, wit hout prejudice t o t he provisions of special laws. (344a ) Art . 425. Propert y of privat e ownership, besides t he pat rimonial propert y of t he St at e, provinces, cit ies, and municipalit ies, consist s of all propert y belonging t o privat e persons, eit her individually or collect ively . (345a )
PROVISIONS COMMON TO THE THREE PRECEDING CHAPTERS Art . 426. Whenever by provision of t he law, or an individual declarat ion, t he expression "immovable things or property," or "movable things or property," is used, it shall be deemed t o include, respect ively , t he t hings enumerat ed in Chapt er 1 and Chapt er 2. Whenever t he word "muebles," or "furniture," is used alone, it shall not be deemed t o include money , credit s, commercial securit ies, st ocks and bonds, jewelry , scient ific or art ist ic collect ions, books, medals, arms, clot hing, horses or carriages and t heir accessories, grains, liquids and merchandise, or ot her t hings which do not have as t heir principal object t he furnishing or ornament ing of a building, except where from t he cont ext of t he law, or t he individual declarat ion, t he cont rary clearly appears. (346a ) Tit le II. - OWNERSHIP CHAPTER 1 OWNERSHIP IN GENERAL Art . 427 . Ownership may be exercised over t hings or right s. (n ) Art . 428. The owner has t he right t o enjoy and dispose of a t hing, wit hout ot her limit at ions t han t hose est ablished by law. The owner has also a right of act ion against t he holder and possessor of t he t hing in order t o recover it . (348a ) Art . 429. The owner or lawful possessor of a t hing has t he right t o exclude any person from t he enjoy ment and disposal t hereof. For t his purpose, he may use such force as may be reasonably necessary t o repel or prevent an act ual or t hreat ened unlawful phy sical invasion or usurpat ion of his propert y . (n ) Art . 430. Every owner may enclose or fence his land or t enement s by means of walls, dit ches, live or dead hedges, or by any ot her means wit hout det riment t o servit udes const it ut ed t hereon. (388) Art . 431. The owner of a t hing cannot make use t hereof in such manner as t o injure t he right s of a t hird person. (n ) Art . 432. The owner of a t hing has no right t o prohibit t he int erference of anot her wit h t he same, if t he int erference is necessary t o avert an imminent danger and t he t hreat ened damage, compared t o t he damage arising t o t he owner from t he int erference, is much great er. The owner may demand from t he person benefit ed indemnit y for t he damage t o him. (n )
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Art . 433. Act ual possession under claim of ownership raises disput able presumpt ion of ownership. The t rue owner must resort t o judicial process for t he recovery of t he propert y . (n ) Art . 434. In an act ion t o recover, t he propert y must be ident ified, and t he plaint iff must rely on t he st rengt h of his t it le and not on t he weakness of t he defendant 's claim. (n ) Art . 435. No person shall be deprived of his propert y except by compet ent aut horit y and for public use and alway s upon pay ment of just compensat ion. Should t his requirement be not first complied wit h, t he court s shall prot ect and, in a proper case, rest ore t he owner in his possession. (349a ) Art . 436. When any propert y is condemned or seized by compet ent aut horit y in t he int erest of healt h, safet y or securit y , t he owner t hereof shall not be ent it led t o compensat ion, unless he can show t hat such condemnat ion or seizure is unjust ified. (n ) Art . 437 . The owner of a parcel of land is t he owner of it s surface and of every t hing under it , and he can const ruct t hereon any works or make any plant at ions and excavat ions which he may deem proper, wit hout det riment t o servit udes and subject t o special laws and ordinances. He cannot complain of t he reasonable requirement s of aerial navigat ion. (350a ) Art . 438. Hidden t reasure belongs t o t he owner of t he land, building, or ot her propert y on which it is found. Nevert heless, when t he discovery is made on t he propert y of anot her, or of t he St at e or any of it s subdivisions, and by chance, one-half t hereof shall be allowed t o t he finder. If t he finder is a t respasser, he shall not be ent it led t o any share of t he t reasure. If t he t hings found be of int erest t o science of t he art s, t he St at e may acquire t hem at t heir just price, which shall be divided in conformit y wit h t he rule st at ed. (351 a ) Art . 439. By t reasure is underst ood, for legal purposes, any hidden and unknown deposit of money , jewelry , or ot her precious object s, t he lawful ownership of which does not appear. (352) CHAPTER 3 RIGHT OF ACCESSION GENERAL PROVISIONS Art . 440. The ownership of propert y gives t he right by accession t o every t hing which is produced t hereby , or which is incorporat ed or at t ached t heret o, eit her nat urally or art ificially . (353) SECTION 1. - Right of Accession wit h Respect t o What is Produced by Propert y Art . 441. To t he owner belongs: (1) The nat ural fruit s; (2) The indust rial fruit s; (3) The civil fruit s. (354) Art . 442. Nat ural fruit s are t he spont aneous product s of t he soil, and t he y oung and ot her product s of animals. Indust rial fruit s are t hose produced by lands of any kind t hrough cult ivat ion or labor. Civil fruit s are t he rent s of buildings, t he price of leases of lands and ot her propert y and t he amount of perpet ual or life annuit ies or ot her similar income. (355a ) Art . 443. He who receives t he fruit s has t he obligat ion t o pay t he expenses made by a t hird person in t heir product ion, gat hering, and preservat ion. (356) Art . 444. Only such as are manifest or born are considered as nat ural or indust rial fruit s. Wit h respect t o animals, it is sufficient t hat t hey are in t he womb of t he mot her, alt hough unborn. (357) SECTION 2. - Right of Accession wit h Respect t o Immovable Propert y Art . 445. What ever is built , plant ed or sown on t he land of anot her and t he improvement s or repairs made t hereon, belong t o t he owner of t he land, subject t o t he provisions of t he following art icles. (358)
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Art . 446. All works, sowing, and plant ing are presumed made by t he owner and at his expense, unless t he cont rary is proved. (359) Art . 447 . The owner of t he land who makes t hereon, personally or t hrough anot her, plant ings, const ruct ions or works wit h t he mat erials of anot her, shall pay t heir value; and, if he act ed in bad fait h, he shall also be obliged t o t he reparat ion of damages. The owner of t he mat erials shall have t he right t o remove t hem only in case he can do so wit hout injury t o t he work const ruct ed, or wit hout t he plant ings, const ruct ions or works being dest roy ed. However, if t he landowner act ed in bad fait h, t he owner of t he mat erials may remove t hem in any event , wit h a right t o be indemnified for damages. (360a ) Art . 448. The owner of t he land on which any t hing has been built , sown or plant ed in good fait h, shall have t he right t o appropriat e as his own t he works, sowing or plant ing, aft er pay ment of t he indemnit y provided for in Art icles 546 and 548, or t o oblige t he one who built or plant ed t o pay t he price of t he land, and t he one who sowed, t he proper rent . However, t he builder or plant er cannot be obliged t o buy t he land if it s value is considerably more t han t hat of t he building or t rees. In such case, he shall pay reasonable rent , if t he owner of t he land does not choose t o appropriat e t he building or t rees aft er proper indemnit y . The part ies shall agree upon t he t erms of t he lease and in case of disagreement , t he court shall fix t he t erms t hereof. (361 a ) Art . 449. He who builds, plant s or sows in bad fait h on t he land of anot her, loses what is built , plant ed or sown wit hout right t o indemnit y . (362) Art . 450. The owner of t he land on which any t hing has been built , plant ed or sown in bad fait h may demand t he demolit ion of t he work, or t hat t he plant ing or sowing be removed, in order t o replace t hings in t heir former condit ion at t he expense of t he person who built , plant ed or sowed; or he may compel t he builder or plant er t o pay t he price of t he land, and t he sower t he proper rent . (363a ) Art . 451. In t he cases of t he t wo preceding art icles, t he landowner is ent it led t o damages from t he builder, plant er or sower. (n ) Art . 452. The builder, plant er or sower in bad fait h is ent it led t o reimbursement for t he necessary expenses of preservat ion of t he land. (n ) Art . 453. If t here was bad fait h, not only on t he part of t he person who built , plant ed or sowed on t he land of anot her, but also on t he part of t he owner of such land, t he right s of one and t he ot her shall be t he same as t hough bot h had act ed in good fait h. It is underst ood t hat t here is bad fait h on t he part of t he landowner whenever t he act was done wit h his knowledge and wit hout opposit ion on his part . (354a ) Art . 454. When t he landowner act ed in bad fait h and t he builder, plant er or sower proceeded in good fait h, t he provisions of art icle 447 shall apply . (n ) Art . 455. If t he mat erials, plant s or seeds belong t o a t hird person who has not act ed in bad fait h, t he owner of t he land shall answer subsidiarily for t heir value and only in t he event t hat t he one who made use of t hem has no propert y wit h which t o pay . This provision shall not apply if t he owner makes use of t he right grant ed by art icle 450. If t he owner of t he mat erials, plant s or seeds has been paid by t he builder, plant er or sower, t he lat t er may demand from t he landowner t he value of t he mat erials and labor. (365a ) Art . 456. In t he cases regulat ed in t he preceding art icles, good fait h does not necessarily exclude negligence, which gives right t o damages under art icle 217 6. (n ) Art . 457 . To t he owners of lands adjoining t he banks of rivers belong t he accret ion which t hey gradually receive from t he effect s of t he current of t he wat ers. (336) Art . 458. The owners of est at es adjoining ponds or lagoons do not acquire t he land left dry by t he nat ural decrease of t he wat ers, or lose t hat inundat ed by t hem in ext raordinary floods. (367) Art . 459. Whenever t he current of a river, creek or t orrent segregat es from an est at e on it s bank a known port ion of land and t ransfers it t o anot her est at e, t he owner of t he land t o which t he segregat ed port ion belonged ret ains t he ownership of it , provided t hat he removes t he same wit hin t wo y ears. (368a ) Art . 460. Trees uproot ed and carried away by t he current of t he wat ers belong t o t he owner of t he land upon which t hey may be cast , if t he owners do not claim t hem wit hin six mont hs. If such owners claim t hem, t hey shall pay t he expenses incurred in gat hering t hem or put t ing t hem in a safe place. (369a ) Art . 461. River beds which are abandoned t hrough t he nat ural change in t he course of t he wat ers ipso fact o belong t o t he owners whose lands are occupied by t he new course in proport ion t o t he area lost . However, t he owners of t he lands adjoining t he old bed shall have t he right t o acquire t he same by pay ing t he value t hereof, which value shall not exceed t he value of t he area occupied by t he new bed. (370a ) Art . 462. Whenever a river, changing it s course by nat ural causes, opens a new bed t hrough a privat e est at e, t his bed
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shall become of public dominion. (372a ) Art . 463. Whenever t he current of a river divides it self int o branches, leaving a piece of land or part t hereof isolat ed, t he owner of t he land ret ains his ownership. He also ret ains it if a port ion of land is separat ed from t he est at e by t he current . (374) Art . 464. Islands which may be formed on t he seas wit hin t he jurisdict ion of t he Philippines, on lakes, and on navigable or float able rivers belong t o t he St at e. (371 a ) Art . 465. Islands which t hrough successive accumulat ion of alluvial deposit s are formed in non-navigable and nonfloat able rivers, belong t o t he owners of t he margins or banks nearest t o each of t hem, or t o t he owners of bot h margins if t he island is in t he middle of t he river, in which case it shall be divided longit udinally in halves. If a single island t hus formed be more dist ant from one margin t han from t he ot her, t he owner of t he nearer margin shall be t he sole owner t hereof. (373a ) SECTION 3. - Right of Accession wit h Respect t o Movable Propert y Art . 466. Whenever t wo movable t hings belonging t o different owners are, wit hout bad fait h, unit ed in such a way t hat t hey form a single object , t he owner of t he principal t hing acquires t he accessory , indemnify ing t he former owner t hereof for it s value. (375) Art . 467 . The principal t hing, as bet ween t wo t hings incorporat ed, is deemed t o be t hat t o which t he ot her has been unit ed as an ornament , or for it s use or perfect ion. (376) Art . 468. If it cannot be det ermined by t he rule given in t he preceding art icle which of t he t wo t hings incorporat ed is t he principal one, t he t hing of t he great er value shall be so considered, and as bet ween t wo t hings of equal value, t hat of t he great er volume. In paint ing and sculpt ure, writ ings, print ed mat t er, engraving and lit hographs, t he board, met al, st one, canvas, paper or parchment shall be deemed t he accessory t hing. (377) Art . 469. Whenever t he t hings unit ed can be separat ed wit hout injury , t heir respect ive owners may demand t heir separat ion. Nevert heless, in case t he t hing unit ed for t he use, embellishment or perfect ion of t he ot her, is much more precious t han t he principal t hing, t he owner of t he former may demand it s separat ion, even t hough t he t hing t o which it has been incorporat ed may suffer some injury . (378) Art . 47 0. Whenever t he owner of t he accessory t hing has made t he incorporat ion in bad fait h, he shall lose t he t hing incorporat ed and shall have t he obligat ion t o indemnify t he owner of t he principal t hing for t he damages he may have suffered. If t he one who has act ed in bad fait h is t he owner of t he principal t hing, t he owner of t he accessory t hing shall have a right t o choose bet ween t he former pay ing him it s value or t hat t he t hing belonging t o him be separat ed, even t hough for t his purpose it be necessary t o dest roy t he principal t hing; and in bot h cases, furt hermore, t here shall be indemnit y for damages. If eit her one of t he owners has made t he incorporat ion wit h t he knowledge and wit hout t he object ion of t he ot her, t heir respect ive right s shall be det ermined as t hough bot h act ed in good fait h. (379a ) Art . 47 1. Whenever t he owner of t he mat erial employ ed wit hout his consent has a right t o an indemnit y , he may demand t hat t his consist in t he delivery of a t hing equal in kind and value, and in all ot her respect s, t o t hat employ ed, or else in t he price t hereof, according t o expert appraisal. (380) Art . 47 2. If by t he will of t heir owners t wo t hings of t he same or different kinds are mixed, or if t he mixt ure occurs by chance, and in t he lat t er case t he t hings are not separable wit hout injury , each owner shall acquire a right proport ional t o t he part belonging t o him, bearing in mind t he value of t he t hings mixed or confused. (381 ) Art . 47 3. If by t he will of only one owner, but in good fait h, t wo t hings of t he same or different kinds are mixed or confused, t he right s of t he owners shall be det ermined by t he provisions of t he preceding art icle. If t he one who caused t he mixt ure or confusion act ed in bad fait h, he shall lose t he t hing belonging t o him t hus mixed or confused, besides being obliged t o pay indemnit y for t he damages caused t o t he owner of t he ot her t hing wit h which his own was mixed. (382) Art . 47 4. One who in good fait h employ s t he mat erial of anot her in whole or in part in order t o make a t hing of a different kind, shall appropriat e t he t hing t hus t ransformed as his own, indemnify ing t he owner of t he mat erial for it s value. If t he mat erial is more precious t han t he t ransformed t hing or is of more value, it s owner may , at his opt ion, appropriat e t he new t hing t o himself, aft er first pay ing indemnit y for t he value of t he work, or demand indemnit y for
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t he mat erial. If in t he making of t he t hing bad fait h int ervened, t he owner of t he mat erial shall have t he right t o appropriat e t he work t o himself wit hout pay ing any t hing t o t he maker, or t o demand of t he lat t er t hat he indemnify him for t he value of t he mat erial and t he damages he may have suffered. However, t he owner of t he mat erial cannot appropriat e t he work in case t he value of t he lat t er, for art ist ic or scient ific reasons, is considerably more t han t hat of t he mat erial.
(383a )
Art . 47 5. In t he preceding art icles, sent iment al value shall be duly appreciat ed. (n ) CHAPTER 3 QUIETING OF TITLE (n ) Art . 47 6. Whenever t here is a cloud on t it le t o real propert y or any int erest t herein, by reason of any inst rument , record, claim, encumbrance or proceeding which is apparent ly valid or effect ive but is in t rut h and in fact invalid, ineffect ive, voidable, or unenforceable, and may be prejudicial t o said t it le, an act ion may be brought t o remove such cloud or t o quiet t he t it le. An act ion may also be brought t o prevent a cloud from being cast upon t it le t o real propert y or any int erest t herein. Art . 47 7 . The plaint iff must have legal or equit able t it le t o, or int erest in t he real propert y which is t he subject mat t er of t he act ion. He need not be in possession of said propert y . Art . 47 8. There may also be an act ion t o quiet t it le or remove a cloud t herefrom when t he cont ract , inst rument or ot her obligat ion has been ext inguished or has t erminat ed, or has been barred by ext inct ive prescript ion. Art . 47 9. The plaint iff must ret urn t o t he defendant all benefit s he may have received from t he lat t er, or reimburse him for expenses t hat may have redounded t o t he plaint iff's benefit . Art . 480. The principles of t he general law on t he quiet ing of t it le are hereby adopt ed insofar as t hey are not in conflict wit h t his Code. Art . 481. The procedure for t he quiet ing of t it le or t he removal of a cloud t herefrom shall be governed by such rules of court as t he Supreme Court shall promulgat ed. CHAPTER 4 RUINOUS BUILDINGS AND TREES IN DANGER OF FALLING Art . 482. If a building, wall, column, or any ot her const ruct ion is in danger of falling, t he owner shall be obliged t o demolish it or t o execut e t he necessary work in order t o prevent it from falling. If t he propriet or does not comply wit h t his obligat ion, t he administ rat ive aut horit ies may order t he demolit ion of t he st ruct ure at t he expense of t he owner, or t ake measures t o insure public safet y . (389a ) Art . 483. Whenever a large t ree t hreat ens t o fall in such a way as t o cause damage t o t he land or t enement of anot her or t o t ravelers over a public or privat e road, t he owner of t he t ree shall be obliged t o fell and remove it ; and should he not do so, it shall be done at his expense by order of t he administ rat ive aut horit ies. (390a ) Tit le III. - CO-OWNERSHIP Art . 484. There is co-ownership whenever t he ownership of an undivided t hing or right belongs t o different persons. In default of cont ract s, or of special provisions, co-ownership shall be governed by t he provisions of t his Tit le. (392) Art . 485. The share of t he co-owners, in t he benefit s as well as in t he charges, shall be proport ional t o t heir respect ive int erest s. Any st ipulat ion in a cont ract t o t he cont rary shall be void. The port ions belonging t o t he co-owners in t he co-ownership shall be presumed equal, unless t he cont rary is proved.
(393a )
Art . 486. Each co-owner may use t he t hing owned in common, provided he does so in accordance wit h t he purpose for which it is int ended and in such a way as not t o injure t he int erest of t he co-ownership or prevent t he ot her co-owners from using it according t o t heir right s. The purpose of t he co-ownership may be changed by agreement , express or implied. (394a ) Art . 487 . Any one of t he co-owners may bring an act ion in eject ment . (n ) Art . 488. Each co-owner shall have a right t o compel t he ot her co-owners t o cont ribut e t o t he expenses of preservat ion of t he t hing or right owned in common and t o t he t axes. Any one of t he lat t er may exempt himself from t his obligat ion by renouncing so much of his undivided int erest as may be equivalent t o his share of t he expenses and t axes. No such
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waiver shall be made if it is prejudicial t o t he co-ownership. (395a ) Art . 489. Repairs for preservat ion may be made at t he will of one of t he co-owners, but he must , if pract icable, first not ify his co-owners of t he necessit y for such repairs. Expenses t o improve or embellish t he t hing shall be decided upon by a majorit y as det ermined in Art icle 492. (n ) Art . 490. Whenever t he different st ories of a house belong t o different owners, if t he t it les of ownership do not specify t he t erms under which t hey should cont ribut e t o t he necessary expenses and t here exist s no agreement on t he subject , t he following rules shall be observed: (1) The main and part y walls, t he roof and t he ot her t hings used in common, shall be preserved at t he expense of all t he owners in proport ion t o t he value of t he st ory belonging t o each; (2) Each owner shall bear t he cost of maint aining t he floor of his st ory ; t he floor of t he ent rance, front door, common y ard and sanit ary works common t o all, shall be maint ained at t he expense of all t he owners pro rat a; (3) The st airs from t he ent rance t o t he first st ory shall be maint ained at t he expense of all t he owners pro rat a, wit h t he except ion of t he owner of t he ground floor; t he st airs from t he first t o t he second st ory shall be preserved at t he expense of all, except t he owner of t he ground floor and t he owner of t he first st ory ; and so on successively . (396) Art . 491. None of t he co-owners shall, wit hout t he consent of t he ot hers, make alt erat ions in t he t hing owned in common, even t hough benefit s for all would result t herefrom. However, if t he wit hholding of t he consent by one or more of t he co-owners is clearly prejudicial t o t he common int erest , t he court s may afford adequat e relief. (397a ) Art . 492. For t he administ rat ion and bet t er enjoy ment of t he t hing owned in common, t he resolut ions of t he majorit y of t he co-owners shall be binding. There shall be no majorit y unless t he resolut ion is approved by t he co-owners who represent t he cont rolling int erest in t he object of t he co-ownership. Should t here be no majorit y , or should t he resolut ion of t he majorit y be seriously prejudicial t o t hose int erest ed in t he propert y owned in common, t he court , at t he inst ance of an int erest ed part y , shall order such measures as it may deem proper, including t he appoint ment of an administ rat or. Whenever a part of t he t hing belongs exclusively t o one of t he co-owners, and t he remainder is owned in common, t he preceding provision shall apply only t o t he part owned in common. (398) Art . 493. Each co-owner shall have t he full ownership of his part and of t he fruit s and benefit s pert aining t heret o, and he may t herefore a lienat e, assign or mort gage it , and even subst it ut e anot her person in it s enjoy ment , except when personal right s are involved. But t he effect of t he alienat ion or t he mort gage, wit h respect t o t he co-owners, shall be limit ed t o t he port ion which may be allot ed t o him in t he division upon t he t erminat ion of t he co-ownership. (399) Art . 494. No co-owner shall be obliged t o remain in t he co-ownership. Each co-owner may demand at any t ime t he part it ion of t he t hing owned in common, insofar as his share is concerned. Nevert heless, an agreement t o keep t he t hing undivided for a cert ain period of t ime, not exceeding t en y ears, shall be valid. This t erm may be ext ended by a new agreement . A donor or t est at or may prohibit part it ion for a period which shall not exceed t went y y ears. Neit her shall t here be any part it ion when it is prohibit ed by law. No prescript ion shall run in favor of a co-owner or co-heir against his co-owners or co-heirs so long as he expressly or impliedly recognizes t he co-ownership. (400a ) Art . 495. Not wit hst anding t he provisions of t he preceding art icle, t he co-owners cannot demand a phy sical division of t he t hing owned in common, when t o do so would render it unserviceable for t he use for which it is int ended. But t he co-ownership may be t erminat ed in accordance wit h Art icle 498. (401 a ) Art . 496. Part it ion may be made by agreement bet ween t he part ies or by judicial proceedings. Part it ion shall be governed by t he Rules of Court insofar as t hey are consist ent wit h t his Code. (402) Art . 497 . The credit ors or assignees of t he co-owners may t ake part in t he division of t he t hing owned in common and object t o it s being effect ed wit hout t heir concurrence. But t hey cannot impugn any part it ion already execut ed, unless t here has been fraud, or in case it was made not wit hst anding a formal opposit ion present ed t o prevent it , wit hout prejudice t o t he right of t he debt or or assignor t o maint ain it s validit y . (403) Art . 498. Whenever t he t hing is essent ially indivisible and t he co-owners cannot agree t hat it be allot t ed t o one of t hem who shall indemnify t he ot hers, it shall be sold and it s proceeds dist ribut ed. (404) Art . 499. The part it ion of a t hing owned in common shall not prejudice t hird persons, who shall ret ain t he right s of mort gage, servit ude or any ot her real right s belonging t o t hem before t he division was made. Personal right s
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pert aining t o t hird persons against t he co-ownership shall also remain in force, not wit hst anding t he part it ion. (405) Art . 500. Upon part it ion, t here shall be a mut ual account ing for benefit s received and reimbursement s for expenses made. Likewise, each co-owner shall pay for damages caused by reason of his negligence or fraud. (n ) Art . 501. Every co-owner shall, aft er part it ion, be liable for defect s of t it le and qualit y of t he port ion assigned t o each of t he ot her co-owners. (n ) Tit le IV. - SOME SPECIAL PROPERTIES CHAPTER I WATERS SECTION 1. - Ownership of Wat ers Art . 502. The following are of public dominion: (1) Rivers and t heir nat ural beds; (2) Cont inuous or int ermit t ent wat ers of springs and brooks running in t heir nat ural beds and t he beds t hemselves; (3) Wat ers rising cont inuously or int ermit t ent ly on lands of public dominion; (4) Lakes and lagoons formed by Nat ure on public lands, and t heir beds; (5) Rain wat ers running t hrough ravines or sand beds, which are also of public dominion; (6) Subt erranean wat ers on public lands; (7 ) Wat ers found wit hin t he zone of operat ion of public works, even if const ruct ed by a cont ract or; (8) Wat ers rising cont inuously or int ermit t ent ly on lands belonging t o privat e persons, t o t he St at e, t o a province, or t o a cit y or a municipalit y from t he moment t hey leave such lands; (9) The wast e wat ers of fount ains, sewers and public est ablishment s. (407) Art . 503. The following are of privat e ownership: (1) Cont inuous or int ermit t ent wat ers rising on lands of privat e ownership, while running t hrough t he same; (2) Lakes and lagoons, and t heir beds, formed by Nat ure on such lands; (3) Subt erranean wat ers found on t he same; (4) Rain wat ers falling on said lands, as long as t hey remain wit hin t he boundaries; (5) The beds of flowing wat ers, cont inuous or int ermit t ent , formed by rain wat er, and t hose of brooks, crossing lands which are not of public dominion. In every drain or aqueduct , t he wat er, bed, banks and floodgat es shall be considered as an int egral part of t he land of building for which t he wat ers are int ended. The owners of lands, t hrough which or along t he boundaries of which t he aqueduct passes, cannot claim ownership over it , or any right t o t he use of it s bed or banks, unless t he claim is based on t it les of ownership specify ing t he right or ownership claimed. (408) SECTION 2. - The Use of Public Wat ers Art . 504. The use of public wat ers is acquired: (1) By administ rat ive concession; (2) By prescript ion for t en y ears. The ext ent of t he right s and obligat ions of t he use shall be t hat est ablished, in t he first case, by t he t erms of t he concession, and, in t he second case, by t he manner and form in which t he wat ers have been used. (409a ) Art . 505. Every concession for t he use of wat ers is underst ood t o be wit hout prejudice t o t hird persons. (41 0) Art . 506. The right t o make use of public wat ers is ext inguished by t he lapse of t he concession and by non-user for five y ears. (41 1 a ) SECTION 3. - The Use of Wat ers of Privat e Ownership
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Art . 507 . The owner of a piece of land on which a spring or brook rises, be it cont inuous or int ermit t ent , may use it s wat ers while t hey run t hrough t he same, but aft er t he wat ers leave t he land t hey shall become public, and t heir use shall be governed by t he Special Law of Wat ers of August 3, 1866, and by t he Irrigat ion Law. (41 2a ) Art . 508. The privat e ownership of t he beds of rain wat ers does not give a right t o make works or const ruct ions which may change t heir course t o t he damage of t hird persons, or whose dest ruct ion, by t he force of floods, may cause such damage. (41 3) Art . 509. No one may ent er privat e propert y t o search wat ers or make use of t hem wit hout permission from t he owners, except as provided by t he Mining Law. (41 4a ) Art . 510. The ownership which t he propriet or of a piece of land has over t he wat ers rising t hereon does not prejudice t he right s which t he owners of lower est at es may have legally acquired t o t he use t hereof. (41 5) Art . 511. Every owner of a piece of land has t he right t o const ruct wit hin his propert y , reservoirs for rain wat ers, provided he causes no damage t o t he public or t o t hird persons. (41 6) SECTION 4. - Subt erranean Wat ers Art . 512. Only t he owner of a piece of land, or anot her person wit h his permission, may make explorat ions t hereon for subt erranean wat ers, except as provided by t he Mining Law. Explorat ions for subt erranean wat ers on lands of public dominion may be made only wit h t he permission of t he administ rat ive aut horit ies. (41 7a ) Art . 513. Wat ers art ificially brought fort h in accordance wit h t he Special Law of Wat ers of August 3, 1866, belong t o t he person who brought t hem up. (41 8) Art . 514. When t he owner of wat ers art ificially brought t o t he surface abandons t hem t o t heir nat ural course, t hey shall become of public dominion. (41 9) SECTION 5. - General Provisions Art . 515. The owner of a piece of land on which t here are defensive works t o check wat ers, or on which, due t o a change of t heir course, it may be necessary t o reconst ruct such works, shall be obliged, at his elect ion, eit her t o make t he necessary repairs or const ruct ion himself, or t o permit t hem t o be done, wit hout damage t o him, by t he owners of t he lands which suffer or are clearly exposed t o suffer injury . (420) Art . 516. The provisions of t he preceding art icle are applicable t o t he case in which it may be necessary t o clear a piece of land of mat t er, whose accumulat ion or fall may obst ruct t he course of t he wat ers, t o t he damage or peril of t hird persons. (421 ) Art . 517 . All t he owners who part icipat e in t he benefit s arising from t he works referred t o in t he t wo preceding art icles, shall be obliged t o cont ribut e t o t he expenses of const ruct ion in proport ion t o t heir respect ive int erest s. Those who by t heir fault may have caused t he damage shall be liable for t he expenses. (422) Art . 518. All mat t ers not expressly det ermined by t he provisions of t his Chapt er shall be governed by t he special Law of Wat ers of August 3, 1866, and by t he Irrigat ion Law. (425a ) CHAPTER 2 MINERALS Art . 519. Mining claims and right s and ot her mat t ers concerning minerals and mineral lands are governed by special laws. (427a ) CHAPTER 3 TRADE-MARKS AND TRADE-NAMES Art . 520. A t rade-mark or t rade-name duly regist ered in t he proper government bureau or office is owned by and pert ains t o t he person, corporat ion, or firm regist ering t he same, subject t o t he provisions of special laws. (n ) Art . 521. The goodwill of a business is propert y , and may be t ransferred t oget her wit h t he right t o use t he name under which t he business is conduct ed. (n ) Art . 522. Trade-marks and t rade-names are governed by special laws. (n ) Tit le V. - POSSESSION
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CHAPTER 1 POSSESSION AND THE KINDS THEREOF Art . 523. Possession is t he holding of a t hing or t he enjoy ment of a right . (430a ) Art . 524. Possession may be exercised in one's own name or in t hat of anot her. (41 3a ) Art . 525. The possession of t hings or right s may be had in one of t wo concept s: eit her in t he concept of owner, or in t hat of t he holder of t he t hing or right t o keep or enjoy it , t he ownership pert aining t o anot her person. (432) Art . 526. He is deemed a possessor in good fait h who is not aware t hat t here exist s in his t it le or mode of acquisit ion any flaw which invalidat es it . He is deemed a possessor in bad fait h who possesses in any case cont rary t o t he foregoing. Mist ake upon a doubt ful or difficult quest ion of law may be t he basis of good fait h. (433a ) Art . 527 . Good fait h is alway s presumed, and upon him who alleges bad fait h on t he part of a possessor rest s t he burden of proof. (434) Art . 528. Possession acquired in good fait h does not lose t his charact er except in t he case and from t he moment fact s exist which show t hat t he possessor is not unaware t hat he possesses t he t hing improperly or wrongfully . (435a ) Art . 529. It is presumed t hat possession cont inues t o be enjoy ed in t he same charact er in which it was acquired, unt il t he cont rary is proved. (436) Art . 530. Only t hings and right s which are suscept ible of being appropriat ed may be t he object of possession. (437) CHAPTER 2 ACQUISITION OF POSSESSION Art . 531. Possession is acquired by t he mat erial occupat ion of a t hing or t he exercise of a right , or by t he fact t hat it is subject t o t he act ion of our will, or by t he proper act s and legal formalit ies est ablished for acquiring such right . (438a ) Art . 532. Possession may be acquired by t he same person who is t o enjoy it , by his legal represent at ive, by his agent , or by any person wit hout any power what ever: but in t he last case, t he possession shall not be considered as acquired unt il t he person in whose name t he act of possession was execut ed has rat ified t he same, wit hout prejudice t o t he juridical consequences of negot iorum gest io in a proper case. (439a ) Art . 533. The possession of heredit ary propert y is deemed t ransmit t ed t o t he heir wit hout int errupt ion and from t he moment of t he deat h of t he decedent , in case t he inherit ance is accept ed. One who validly renounces an inherit ance is deemed never t o have possessed t he same. (440) Art . 534. On who succeeds by heredit ary t it le shall not suffer t he consequences of t he wrongful possession of t he decedent , if it is not shown t hat he was aware of t he flaws affect ing it ; but t he effect s of possession in good fait h shall not benefit him except from t he dat e of t he deat h of t he decedent . (442) Art . 535. Minors and incapacit at ed persons may acquire t he possession of t hings; but t hey need t he assist ance of t heir legal represent at ives in order t o exercise t he right s which from t he possession arise in t heir favor. (443) Art . 536. In no case may possession be acquired t hrough force or int imidat ion as long as t here is a possessor who object s t heret o. He who believes t hat he has an act ion or a right t o deprive anot her of t he holding of a t hing, must invoke t he aid of t he compet ent court , if t he holder should refuse t o deliver t he t hing. (441 a ) Art . 537 . Act s merely t olerat ed, and t hose execut ed clandest inely and wit hout t he knowledge of t he possessor of a t hing, or by violence, do not affect possession. (444) Art . 538. Possession as a fact cannot be recognized at t he same t ime in t wo different personalit ies except in t he cases of co-possession. Should a quest ion arise regarding t he fact of possession, t he present possessor shall be preferred; if t here are t wo possessors, t he one longer in possession; if t he dat es of t he possession are t he same, t he one who present s a t it le; and if all t hese condit ions are equal, t he t hing shall be placed in judicial deposit pending det erminat ion of it s possession or ownership t hrough proper proceedings. (445) CHAPTER 3 EFFECTS OF POSSESSION Art . 539. Every possessor has a right t o be respect ed in his possession; and should he be dist urbed t herein he shall be prot ect ed in or rest ored t o said possession by t he means est ablished by t he laws and t he Rules of Court .
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A possessor deprived of his possession t hrough forcible ent ry may wit hin t en day s from t he filing of t he complaint present a mot ion t o secure from t he compet ent court , in t he act ion for forcible ent ry , a writ of preliminary mandat ory injunct ion t o rest ore him in his possession. The court shall decide t he mot ion wit hin t hirt y (30) day s from t he filing t hereof. (446a ) Art . 540. Only t he possession acquired and enjoy ed in t he concept of owner can serve as a t it le for acquiring dominion.
(447)
Art . 541. A possessor in t he concept of owner has in his favor t he legal presumpt ion t hat he possesses wit h a just t it le and he cannot be obliged t o show or prove it . (448a ) Art . 542. The possession of real propert y presumes t hat of t he movables t herein, so long as it is not shown or proved t hat t hey should be excluded. (449) Art . 543. Each one of t he part icipant s of a t hing possessed in common shall be deemed t o have exclusively possessed t he part which may be allot t ed t o him upon t he division t hereof, for t he ent ire period during which t he co-possession last ed. Int errupt ion in t he possession of t he whole or a part of a t hing possessed in common shall be t o t he prejudice of all t he possessors. However, in case of civil int errupt ion, t he Rules of Court shall apply . (450a ) Art . 544. A possessor in good fait h is ent it led t o t he fruit s received before t he possession is legally int errupt ed. Nat ural and indust rial fruit s are considered received from t he t ime t hey are gat hered or severed. Civil fruit s are deemed t o accrue daily and belong t o t he possessor in good fait h in t hat proport ion. (451 ) Art . 545. If at t he t ime t he good fait h ceases, t here should be any nat ural or indust rial fruit s, t he possessor shall have a right t o a part of t he expenses of cult ivat ion, and t o a part of t he net harvest , bot h in proport ion t o t he t ime of t he possession. The charges shall be divided on t he same basis by t he t wo possessors. The owner of t he t hing may , should he so desire, give t he possessor in good fait h t he right t o finish t he cult ivat ion and gat hering of t he growing fruit s, as an indemnit y for his part of t he expenses of cult ivat ion and t he net proceeds; t he possessor in good fait h who for any reason what ever should refuse t o accept t his concession, shall lose t he right t o be indemnified in any ot her manner. (452a ) Art . 546. Necessary expenses shall be refunded t o every possessor; but only t he possessor in good fait h may ret ain t he t hing unt il he has been reimbursed t herefor. Useful expenses shall be refunded only t o t he possessor in good fait h wit h t he same right of ret ent ion, t he person who has defeat ed him in t he possession having t he opt ion of refunding t he amount of t he expenses or of pay ing t he increase in value which t he t hing may have acquired by reason t hereof. (453a ) Art . 547 . If t he useful improvement s can be removed wit hout damage t o t he principal t hing, t he possessor in good fait h may remove t hem, unless t he person who recovers t he possession exercises t he opt ion under paragraph 2 of t he preceding art icle. (n ) Art . 548. Expenses for pure luxury or mere pleasure shall not be refunded t o t he possessor in good fait h; but he may remove t he ornament s wit h which he has embellished t he principal t hing if it suffers no injury t hereby , and if his successor in t he possession does not prefer t o refund t he amount expended. (454) Art . 549. The possessor in bad fait h shall reimburse t he fruit s received and t hose which t he legit imat e possessor could have received, and shall have a right only t o t he expenses ment ioned in paragraph 1 of Art icle 546 and in Art icle 443. The expenses incurred in improvement s for pure luxury or mere pleasure shall not be refunded t o t he possessor in bad fait h, but he may remove t he object s for which such expenses have been incurred, provided t hat t he t hing suffers no injury t hereby , and t hat t he lawful possessor does not prefer t o ret ain t hem by pay ing t he value t hey may have at t he t ime he ent ers int o possession. (445a ) Art . 550. The cost s of lit igat ion over t he propert y shall be borne by every possessor. (n ) Art . 551. Improvement s caused by nat ure or t ime shall alway s insure t o t he benefit of t he person who has succeeded in recovering possession. (456) Art . 552. A possessor in good fait h shall not be liable for t he det eriorat ion or loss of t he t hing possessed, except in cases in which it is proved t hat he has act ed wit h fraudulent int ent or negligence, aft er t he judicial summons. A possessor in bad fait h shall be liable for det eriorat ion or loss in every case, even if caused by a fort uit ous event . (457a ) Art . 553. One who recovers possession shall not be obliged t o pay for improvement s which have ceased t o exist at t he t ime he t akes possession of t he t hing. (458) Art . 554. A present possessor who shows his possession at some previous t ime, is presumed t o have held possession also during t he int ermediat e period, in t he absence of proof t o t he cont rary . (459)
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Art . 555. A possessor may lose his possession: (1) By t he abandonment of t he t hing; (2) By an assignment made t o anot her eit her by onerous or grat uit ous t it le; (3) By t he dest ruct ion or t ot al loss of t he t hing, or because it goes out of commerce; (4) By t he possession of anot her, subject t o t he provisions of Art icle 537 , if t he new possession has last ed longer t han one y ear. But t he real right of possession is not lost t ill aft er t he lapse of t en y ears. (460a ) Art . 556. The possession of movables is not deemed lost so long as t hey remain under t he cont rol of t he possessor, even t hough for t he t ime being he may not know t heir whereabout s. (461 ) Art . 557 . The possession of immovables and of real right s is not deemed lost , or t ransferred for purposes of prescript ion t o t he prejudice of t hird persons, except in accordance wit h t he provisions of t he Mort gage Law and t he Land Regist rat ion laws. (462a ) Art . 558. Act s relat ing t o possession, execut ed or agreed t o by one who possesses a t hing belonging t o anot her as a mere holder t o enjoy or keep it , in any charact er, do not bind or prejudice t he owner, unless he gave said holder express aut horit y t o do such act s, or rat ifies t hem subsequent ly . (463) Art . 559. The possession of movable propert y acquired in good fait h is equivalent t o a t it le. Nevert heless, one who has lost any movable or has been unlawfully deprived t hereof may recover it from t he person in possession of t he same. If t he possessor of a movable lost or which t he owner has been unlawfully deprived, has acquired it in good fait h at a public sale, t he owner cannot obt ain it s ret urn wit hout reimbursing t he price paid t herefor. (464a ) Art . 560. Wild animals are possessed only while t hey are under one's cont rol; domest icat ed or t amed animals are considered domest ic or t ame if t hey ret ain t he habit of ret urning t o t he premises of t he possessor. (465) Art . 561. One who recovers, according t o law, possession unjust ly lost , shall be deemed for all purposes which may redound t o his benefit , t o have enjoy ed it wit hout int errupt ion. (466) Tit le VI. - USUFRUCT CHAPTER 1 USUFRUCT IN GENERAL Art . 562. Usufruct gives a right t o enjoy t he propert y of anot her wit h t he obligat ion of preserving it s form and subst ance, unless t he t it le const it ut ing it or t he law ot herwise provides. (467) Art . 563. Usufruct is const it ut ed by law, by t he will of privat e persons expressed in act s int er vivos or in a last will and t est ament , and by prescript ion. (468) Art . 564. Usufruct may be const it ut ed on t he whole or a part of t he fruit s of t he t hing, in favor of one more persons, simult aneously or successively , and in every case from or t o a cert ain day , purely or condit ionally . It may also be const it ut ed on a right , provided it is not st rict ly personal or int ransmissible. (469) Art . 565. The right s and obligat ions of t he usufruct uary shall be t hose provided in t he t it le const it ut ing t he usufruct ; in default of such t it le, or in case it is deficient , t he provisions cont ained in t he t wo following Chapt ers shall be observed. (470) CHAPTER 2 RIGHTS OF THE USUFRUCTUARY Art . 566. The usufruct uary shall be ent it led t o all t he nat ural, indust rial and civil fruit s of t he propert y in usufruct . Wit h respect t o hidden t reasure which may be found on t he land or t enement , he shall be considered a st ranger. (471 ) Art . 567 . Nat ural or indust rial fruit s growing at t he t ime t he usufruct begins, belong t o t he usufruct uary . Those growing at t he t ime t he usufruct t erminat es, belong t o t he owner. In t he preceding cases, t he usufruct uary , at t he beginning of t he usufruct , has no obligat ion t o refund t o t he owner any expenses incurred; but t he owner shall be obliged t o reimburse at t he t erminat ion of t he usufruct , from t he proceeds of t he growing fruit s, t he ordinary expenses of cult ivat ion, for seed, and ot her similar expenses incurred by t he usufruct uary . The provisions of t his art icle shall not prejudice t he right s of t hird persons, acquired eit her at t he beginning or at t he t erminat ion of t he usufruct . (472)
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Art . 568. If t he usufruct uary has leased t he lands or t enement s given in usufruct , and t he usufruct should expire before t he t erminat ion of t he lease, he or his heirs and successors shall receive only t he proport ionat e share of t he rent t hat must be paid by t he lessee. (473) Art . 569. Civil fruit s are deemed t o accrue daily , and belong t o t he usufruct uary in proport ion t o t he t ime t he usufruct may last . (474) Art . 57 0. Whenever a usufruct is const it ut ed on t he right t o receive a rent or periodical pension, whet her in money or in fruit s, or in t he int erest on bonds or securit ies pay able t o bearer, each pay ment due shall be considered as t he proceeds or fruit s of such right . Whenever it consist s in t he enjoy ment of benefit s accruing from a part icipat ion in any indust rial or commercial ent erprise, t he dat e of t he dist ribut ion of which is not fixed, such benefit s shall have t he same charact er. In eit her case t hey shall be dist ribut ed as civil fruit s, and shall be applied in t he manner prescribed in t he preceding art icle. (475) Art . 57 1. The usufruct uary shall have t he right t o enjoy any increase which t he t hing in usufruct may acquire t hrough accession, t he servit udes est ablished in it s favor, and, in general, all t he benefit s inherent t herein. (479) Art . 57 2. The usufruct uary may personally enjoy t he t hing in usufruct , lease it t o anot her, or alienat e his right of usufruct , even by a grat uit ous t it le; but all t he cont ract s he may ent er int o as such usufruct uary shall t erminat e upon t he expirat ion of t he usufruct , saving leases of rural lands, which shall be considered as subsist ing during t he agricult ural y ear. (480) Art . 57 3. Whenever t he usufruct includes t hings which, wit hout being consumed, gradually det eriorat e t hrough wear and t ear, t he usufruct uary shall have t he right t o make use t hereof in accordance wit h t he purpose for which t hey are int ended, and shall not be obliged t o ret urn t hem at t he t erminat ion of t he usufruct except in t heir condit ion at t hat t ime; but he shall be obliged t o indemnify t he owner for any det eriorat ion t hey may have suffered by reason of his fraud or negligence. (481 ) Art . 57 4. Whenever t he usufruct includes t hings which cannot be used wit hout being consumed, t he usufruct uary shall have t he right t o make use of t hem under t he obligat ion of pay ing t heir appraised value at t he t erminat ion of t he usufruct , if t hey were appraised when delivered. In case t hey were not appraised, he shall have t he right t o ret urn at t he same quant it y and qualit y , or pay t heir current price at t he t ime t he usufruct ceases. (482) Art . 57 5. The usufruct uary of fruit -bearing t rees and shrubs may make use of t he dead t runks, and even of t hose cut off or uproot ed by accident , under t he obligat ion t o replace t hem wit h new plant s. (483a ) Art . 57 6. If in consequence of a calamit y or ext raordinary event , t he t rees or shrubs shall have disappeared in such considerable number t hat it would not be possible or it would be t oo burdensome t o replace t hem, t he usufruct uary may leave t he dead, fallen or uproot ed t runks at t he disposal of t he owner, and demand t hat t he lat t er remove t hem and clear t he land. (484a ) Art . 57 7 . The usufruct uary of woodland may enjoy all t he benefit s which it may produce according t o it s nat ure. If t he woodland is a copse or consist s of t imber for building, t he usufruct uary may do such ordinary cut t ing or felling as t he owner was in t he habit of doing, and in default of t his, he may do so in accordance wit h t he cust om of t he place, as t o t he manner, amount and season. In any case t he felling or cut t ing of t rees shall be made in such manner as not t o prejudice t he preservat ion of t he land. In nurseries, t he usufruct uary may make t he necessary t hinnings in order t hat t he remaining t rees may properly grow. Wit h t he except ion of t he provisions of t he preceding paragraphs, t he usufruct uary cannot cut down t rees unless it be t o rest ore or improve some of t he t hings in usufruct , and in such case shall first inform t he owner of t he necessit y for t he work. (485) Art . 57 8. The usufruct uary of an act ion t o recover real propert y or a real right , or any movable propert y , has t he right t o bring t he act ion and t o oblige t he owner t hereof t o give him t he aut horit y for t his purpose and t o furnish him what ever proof he may have. If in consequence of t he enforcement of t he act ion he acquires t he t hing claimed, t he usufruct shall be limit ed t o t he fruit s, t he dominion remaining wit h t he owner. (486) Art . 57 9. The usufruct uary may make on t he propert y held in usufruct such useful improvement s or expenses for mere pleasure as he may deem proper, provided he does not alt er it s form or subst ance; but he shall have no right t o be indemnified t herefor. He may , however, remove such improvement s, should it be possible t o do so wit hout damage t o t he propert y . (487) Art . 580. The usufruct uary may set off t he improvement s he may have made on t he propert y against any damage t o t he same. (488)
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Art . 581. The owner of propert y t he usufruct of which is held by anot her, may alienat e it , but he cannot alt er it s form or subst ance, or do any t hing t hereon which may be prejudicial t o t he usufruct uary . (489) Art . 582. The usufruct uary of a part of a t hing held in common shall exercise all t he right s pert aining t o t he owner t hereof wit h respect t o t he administ rat ion and t he collect ion of fruit s or int erest . Should t he co-ownership cease by reason of t he division of t he t hing held in common, t he usufruct of t he part allot t ed t o t he co-owner shall belong t o t he usufruct uary . (490) CHAPTER 3 OBLIGATIONS OF THE USUFRUCTUARY Art . 583. The usufruct uary , before ent ering upon t he enjoy ment of t he propert y , is obliged: (1) To make, aft er not ice t o t he owner or his legit imat e represent at ive, an invent ory of all t he propert y , which shall cont ain an appraisal of t he movables and a descript ion of t he condit ion of t he immovables; (2) To give securit y , binding himself t o fulfill t he obligat ions imposed upon him in accordance wit h t his Chapt er.
(491 )
Art . 584. The provisions of No. 2 of t he preceding art icle shall not apply t o t he donor who has reserved t he usufruct of t he propert y donat ed, or t o t he parent s who are usufruct uaries of t heir children's propert y , except when t he parent s cont ract a second marriage. (492a ) Art . 585. The usufruct uary , what ever may be t he t it le of t he usufruct , may be excused from t he obligat ion of making an invent ory or of giving securit y , when no one will be injured t hereby . (493) Art . 586. Should t he usufruct uary fail t o give securit y in t he cases in which he is bound t o give it , t he owner may demand t hat t he immovables be placed under administ rat ion, t hat t he movables be sold, t hat t he public bonds, inst rument s of credit pay able t o order or t o bearer be convert ed int o regist ered cert ificat es or deposit ed in a bank or public inst it ut ion, and t hat t he capit al or sums in cash and t he proceeds of t he sale of t he movable propert y be invest ed in safe securit ies. The int erest on t he proceeds of t he sale of t he movables and t hat on public securit ies and bonds, and t he proceeds of t he propert y placed under administ rat ion, shall belong t o t he usufruct uary . Furt hermore, t he owner may , if he so prefers, unt il t he usufruct uary gives securit y or is excused from so doing, ret ain in his possession t he propert y in usufruct as administ rat or, subject t o t he obligat ion t o deliver t o t he usufruct uary t he net proceeds t hereof, aft er deduct ing t he sums which may be agreed upon or judicially allowed him for such administ rat ion. (494) Art . 587 . If t he usufruct uary who has not given securit y claims, by virt ue of a promise under oat h, t he delivery of t he furnit ure necessary for his use, and t hat he and his family be allowed t o live in a house included in t he usufruct , t he court may grant t his pet it ion, aft er due considerat ion of t he fact s of t he case. The same rule shall be observed wit h respect t o implement s, t ools and ot her movable propert y necessary for an indust ry or vocat ion in which he is engaged. If t he owner does not wish t hat cert ain art icles be sold because of t heir art ist ic wort h or because t hey have a sent iment al value, he may demand t heir delivery t o him upon his giving securit y for t he pay ment of t he legal int erest on t heir appraised value. (495) Art . 588. Aft er t he securit y has been given by t he usufruct uary , he shall have a right t o all t he proceeds and benefit s from t he day on which, in accordance wit h t he t it le const it ut ing t he usufruct , he should have commenced t o receive t hem. (496) Art . 589. The usufruct uary shall t ake care of t he t hings given in usufruct as a good fat her of a family . (497) Art . 590. A usufruct uary who alienat es or leases his right of usufruct shall answer for any damage which t he t hings in usufruct may suffer t hrough t he fault or negligence of t he person who subst it ut es him. (498) Art . 591. If t he usufruct be const it ut ed on a flock or herd of livest ock, t he usufruct uary shall be obliged t o replace wit h t he y oung t hereof t he animals t hat die each y ear from nat ural causes, or are lost due t o t he rapacit y of beast s of prey . If t he animals on which t he usufruct is const it ut ed should all perish, wit hout t he fault of t he usufruct uary , on account of some cont agious disease or any ot her uncommon event , t he usufruct uary shall fulfill his obligat ion by delivering t o t he owner t he remains which may have been saved from t he misfort une. Should t he herd or flock perish in part , also by accident and wit hout t he fault of t he usufruct uary , t he usufruct shall cont inue on t he part saved. Should t he usufruct be on st erile animals, it shall be considered, wit h respect t o it s effect s, as t hough const it ut ed on fungible t hings. (499a )
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Art . 592. The usufruct uary is obliged t o make t he ordinary repairs needed by t he t hing given in usufruct . By ordinary repairs are underst ood such as are required by t he wear and t ear due t o t he nat ural use of t he t hing and are indispensable for it s preservat ion. Should t he usufruct uary fail t o make t hem aft er demand by t he owner, t he lat t er may make t hem at t he expense of t he usufruct uary . (500) Art . 593. Ext raordinary repairs shall be at t he expense of t he owner. The usufruct uary is obliged t o not ify t he owner when t he need for such repairs is urgent . (501 ) Art . 594. If t he owner should make t he ext raordinary repairs, he shall have a right t o demand of t he usufruct uary t he legal int erest on t he amount expended for t he t ime t hat t he usufruct last s. Should he not make t hem when t hey are indispensable for t he preservat ion of t he t hing, t he usufruct uary may make t hem; but he shall have a right t o demand of t he owner, at t he t erminat ion of t he usufruct , t he increase in value which t he immovable may have acquired by reason of t he repairs. (502a ) Art . 595. The owner may const ruct an y works and make any improvement s of which t he immovable in usufruct is suscept ible, or make new plant ings t hereon if it be rural, provided t hat such act s do not cause a diminut ion in t he value of t he usufruct or prejudice t he right of t he usufruct uary . (503) Art . 596. The pay ment of annual charges and t axes and of t hose considered as a lien on t he fruit s, shall be at t he expense of t he usufruct uary for all t he t ime t hat t he usufruct last s. (504) Art . 597 . The t axes which, during t he usufruct , may be imposed direct ly on t he capit al, shall be at t he expense of t he owner. If t he lat t er has paid t hem, t he usufruct uary shall pay him t he proper int erest on t he sums which may have been paid in t hat charact er; and, if t he said sums have been advanced by t he usufruct uary , he shall recover t he amount t hereof at t he t erminat ion of t he usufruct . (505) Art . 598. If t he usufruct be const it ut ed on t he whole of a pat rimony , and if at t he t ime of it s const it ut ion t he owner has debt s, t he provisions of Art icles 7 58 and 7 59 relat ing t o donat ions shall be applied, bot h wit h respect t o t he maint enance of t he usufruct and t o t he obligat ion of t he usufruct uary t o pay such debt s. The same rule shall be applied in case t he owner is obliged, at t he t ime t he usufruct is const it ut ed, t o make periodical pay ment s, even if t here should be no known capit al. (506) Art . 599. The usufruct uary may claim any mat ured credit s which form a part of t he usufruct if he has given or gives t he proper securit y . If he has been excused from giving securit y or has been able t o give it , or if t hat given is not sufficient , he shall need t he aut horizat ion of t he owner, or of t he court in default t hereof, t o collect such credit s. The usufruct uary who has given securit y may use t he capit al he has collect ed in any manner he may deem proper. The usufruct uary who has not given securit y shall invest t he said capit al at int erest upon agreement wit h t he owner; in default of such agreement , wit h judicial aut horizat ion; and, in every case, wit h securit y sufficient t o preserve t he int egrit y of t he capit al in usufruct . (507) Art . 600. The usufruct uary of a mort gaged immovable shall not be obliged t o pay t he debt for t he securit y of which t he mort gage was const it ut ed. Should t he immovable be at t ached or sold judicially for t he pay ment of t he debt , t he owner shall be liable t o t he usufruct uary for what ever t he lat t er may lose by reason t hereof. (509) Art . 601. The usufruct uary shall be obliged t o not ify t he owner of any act of a t hird person, of which he may have knowledge, t hat may be prejudicial t o t he right s of ownership, and he shall be liable should he not do so, for damages, as if t hey had been caused t hrough his own fault . (51 1 ) Art . 602. The expenses, cost s and liabilit ies in suit s brought wit h regard t o t he usufruct shall be borne by t he usufruct uary . (51 2) CHAPTER 4 EXTINGUISHMENT OF USUFRUCT Art . 603. Usufruct is ext inguished: (1) By t he deat h of t he usufruct uary , unless a cont rary int ent ion clearly appears; (2) By t he expirat ion of t he period for which it was const it ut ed, or by t he fulfillment of any resolut ory condit ion provided in t he t it le creat ing t he usufruct ; (3) By merger of t he usufruct and ownership in t he same person; (4) By renunciat ion of t he usufruct uary ;
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(5) By t he t ot al loss of t he t hing in usufruct ; (6) By t he t erminat ion of t he right of t he person const it ut ing t he usufruct ; (7 ) By prescript ion. (51 3a ) Art . 604. If t he t hing given in usufruct should be lost only in part , t he right shall cont inue on t he remaining part . (51 4) Art . 605. Usufruct cannot be const it ut ed in favor of a t own, corporat ion, or associat ion for more t han fift y y ears. If it has been const it ut ed, and before t he expirat ion of such period t he t own is abandoned, or t he corporat ion or associat ion is dissolved, t he usufruct shall be ext inguished by reason t hereof. (51 5a ) Art . 606. A usufruct grant ed for t he t ime t hat may elapse before a t hird person at t ains a cert ain age, shall subsist for t he number of y ears specified, even if t he t hird person should die before t he period expires, unless such usufruct has been expressly grant ed only in considerat ion of t he exist ence of such person. (51 6) Art . 607 . If t he usufruct is const it ut ed on immovable propert y of which a building forms part , and t he lat t er should be dest roy ed in any manner what soever, t he usufruct uary shall have a right t o make use of t he land and t he mat erials. The same rule shall be applied if t he usufruct is const it ut ed on a building only and t he same should be dest roy ed. But in such a case, if t he owner should wish t o const ruct anot her building, he shall have a right t o occupy t he land and t o make use of t he mat erials, being obliged t o pay t o t he usufruct uary , during t he cont inuance of t he usufruct , t he int erest upon t he sum equivalent t o t he value of t he land and of t he mat erials. (51 7) Art . 608. If t he usufruct uary shares wit h t he owner t he insurance of t he t enement given in usufruct , t he former shall, in case of loss, cont inue in t he enjoy ment of t he new building, should one be const ruct ed, or shall receive t he int erest on t he insurance indemnit y if t he owner does not wish t o rebuild. Should t he usufruct uary have refused t o cont ribut e t o t he insurance, t he owner insuring t he t enement alone, t he lat t er shall receive t he full amount of t he insurance indemnit y in case of loss, saving alway s t he right grant ed t o t he usufruct uary in t he preceding art icle. (51 8a ) Art . 609. Should t he t hing in usufruct be expropriat ed for public use, t he owner shall be obliged eit her t o replace it wit h anot her t hing of t he same value and of similar condit ions, or t o pay t he usufruct uary t he legal int erest on t he amount of t he indemnit y for t he whole period of t he usufruct . If t he owner chooses t he lat t er alt ernat ive, he shall give securit y for t he pay ment of t he int erest . (51 9) Art . 610. A usufruct is not ext inguished by bad use of t he t hing in usufruct ; but if t he abuse should cause considerable injury t o t he owner, t he lat t er may demand t hat t he t hing be delivered t o him, binding himself t o pay annually t o t he usufruct uary t he net proceeds of t he same, aft er deduct ing t he expenses and t he compensat ion which may be allowed him for it s administ rat ion. (520) Art . 611. A usufruct const it ut ed in favor of several persons living at t he t ime of it s const it ut ion shall not be ext inguished unt il deat h of t he last survivor. (521 ) Art . 612. Upon t he t erminat ion of t he usufruct , t he t hing in usufruct shall be delivered t o t he owner, wit hout prejudice t o t he right of ret ent ion pert aining t o t he usufruct uary or his heirs for t axes and ext raordinary expenses which should be reimbursed. Aft er t he delivery has been made, t he securit y or mort gage shall be cancelled. (522a ) Tit le VII. - EASEMENTS OF SERVITUDES CHAPTER 1 EASEMENTS IN GENERAL SECTION 1. - Different Kinds of Easement s Art . 613. An easement or servit ude is an encumbrance imposed upon an immovable for t he benefit of anot her immovable belonging t o a different owner. The immovable in favor of which t he easement is est ablished is called t he dominant est at e; t hat which is subject t heret o, t he servient est at e. (530) Art . 614. Servit udes may also be est ablished for t he benefit of a communit y , or of one or more persons t o whom t he encumbered est at e does not belong. (531 ) Art . 615. Easement s may be cont inuous or discont inuous, apparent or nonapparent . Cont inuous easement s are t hose t he use of which is or may be incessant , wit hout t he int ervent ion of any act of man. Discont inuous easement s are t hose which are used at int ervals and depend upon t he act s of man. Apparent easement s are t hose which are made known and are cont inually kept in view by ext ernal signs t hat reveal t he use and enjoy ment of t he same.
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Nonapparent easement s are t hose which show no ext ernal indicat ion of t heir exist ence. (532) Art . 616. Easement s are also posit ive or negat ive. A posit ive easement is one which imposes upon t he owner of t he servient est at e t he obligat ion of allowing somet hing t o be done or of doing it himself, and a negat ive easement , t hat which prohibit s t he owner of t he servient est at e from doing somet hing which he could lawfully do if t he easement did not exist . (533) Art . 617 . Easement s are inseparable from t he est at e t o which t hey act ively or passively belong. (534) Art . 618. Easement s are indivisible. If t he servient est at e is divided bet ween t wo or more persons, t he easement is not modified, and each of t hem must bear it on t he part which corresponds t o him. If it is t he dominant est at e t hat is divided bet ween t wo or more persons, each of t hem may use t he easement in it s ent iret y , wit hout changing t he place of it s use, or making it more burdensome in any ot her way . (535) Art . 619. Easement s are est ablished eit her by law or by t he will of t he owners. The former are called legal and t he lat t er volunt ary easement s. (536) SECTION 2. - Modes of Acquiring Easement s Art . 620. Cont inuous and apparent easement s are acquired eit her by virt ue of a t it le or by prescript ion of t en y ears.
(537a )
Art . 621. In order t o acquire by prescript ion t he easement s referred t o in t he preceding art icle, t he t ime of possession shall be comput ed t hus: in posit ive easement s, from t he day on which t he owner of t he dominant est at e, or t he person who may have made use of t he easement , commenced t o exercise it upon t he servient est at e; and in negat ive easement s, from t he day on which t he owner of t he dominant est at e forbade, by an inst rument acknowledged before a not ary public, t he owner of t he servient est at e, from execut ing an act which would be lawful wit hout t he easement .
(538a )
Art . 622. Cont inuous nonapparent easement s, and discont inuous ones, whet her apparent or not , may be acquired only by virt ue of a t it le. (539) Art . 623. The absence of a document or proof showing t he origin of an easement which cannot be acquired by prescript ion may be cured by a deed of recognit ion by t he owner of t he servient est at e or by a final judgment . (540a ) Art . 624. The exist ence of an apparent sign of easement bet ween t wo est at es, est ablished or maint ained by t he owner of bot h, shall be considered, should eit her of t hem be alienat ed, as a t it le in order t hat t he easement may cont inue act ively and passively , unless, at t he t ime t he ownership of t he t wo est at es is divided, t he cont rary should be provided in t he t it le of convey ance of eit her of t hem, or t he sign aforesaid should be removed before t he execut ion of t he deed. This provision shall also apply in case of t he division of a t hing owned in common by t wo or more persons. (541 a ) Art . 625. Upon t he est ablishment of an easement , all t he right s necessary for it s use are considered grant ed. (542) Art . 626. The owner of t he dominant est at e cannot use t he easement except for t he benefit of t he immovable originally cont emplat ed. Neit her can he exercise t he easement in any ot her manner t han t hat previously est ablished. (n ) SECTION 3. - Right s and Obligat ions of t he Owners of t he Dominant and Servient Est at es Art . 627 . The owner of t he dominant est at e may make, at his own expense, on t he servient st at e any works necessary for t he use and preservat ion of t he servit ude, but wit hout alt ering it or rendering it more burdensome. For t his purpose he shall not ify t he owner of t he servient est at e, and shall choose t he most convenient t ime and manner so as t o cause t he least inconvenience t o t he owner of t he servient est at e. (543a ) Art . 628. Should t here be several dominant est at es, t he owners of all of t hem shall be obliged t o cont ribut e t o t he expenses referred t o in t he preceding art icle, in proport ion t o t he benefit s which each may derive from t he work. Any one who does not wish t o cont ribut e may exempt himself by renouncing t he easement for t he benefit of t he ot hers. If t he owner of t he servient est at e should make use of t he easement in any manner what soever, he shall also be obliged t o cont ribut e t o t he expenses in t he proport ion st at ed, saving an agreement t o t he cont rary . (544) Art . 629. The owner of t he servient est at e cannot impair, in any manner what soever, t he use of t he servit ude. Nevert heless, if by reason of t he place originally assigned, or of t he manner est ablished for t he use of t he easement , t he same should become very inconvenient t o t he owner of t he servient est at e, or should prevent him from making any import ant works, repairs or improvement s t hereon, it may be changed at his expense, provided he offers anot her place or manner equally convenient and in such a way t hat no injury is caused t hereby t o t he owner of t he dominant est at e or t o t hose who may have a right t o t he use of t he easement . (545)
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Art . 630. The owner of t he servient est at e ret ains t he ownership of t he port ion on which t he easement is est ablished, and may use t he same in such a manner as not t o affect t he exercise of t he easement . (n ) SECTION 4. - Modes of Ext inguishment of Easement s Art . 631. Easement s are ext inguished: (1) By merger in t he same person of t he ownership of t he dominant and servient est at es; (2) By nonuser for t en y ears; wit h respect t o discont inuous easement s, t his period shall be comput ed from t he day on which t hey ceased t o be used; and, wit h respect t o cont inuous easement s, from t he day on which an act cont rary t o t he same t ook place; (3) When eit her or bot h of t he est at es fall int o such condit ion t hat t he easement cannot be used; but it shall revive if t he subsequent condit ion of t he est at es or eit her of t hem should again permit it s use, unless when t he use becomes possible, sufficient t ime for prescript ion has elapsed, in accordance wit h t he provisions of t he preceding number; (4) By t he expirat ion of t he t erm or t he fulfillment of t he condit ion, if t he easement is t emporary or condit ional; (5) By t he renunciat ion of t he owner of t he dominant est at e; (6) By t he redempt ion agreed upon bet ween t he owners of t he dominant and servient est at es. (546a ) Art . 632. The form or manner of using t he easement may prescribe as t he easement it self, and in t he same way . (547a ) Art . 633. If t he dominant est at e belongs t o several persons in common, t he use of t he easement by any one of t hem prevent s prescript ion wit h respect t o t he ot hers. (548) CHAPTER 2 LEGAL EASEMENTS SECTION 1. - General Provisions Art . 634. Easement s imposed by law have for t heir object eit her public use or t he int erest of privat e persons. (549) Art . 635. All mat t ers concerning easement s est ablished for public or communal use shall be governed by t he special laws and regulat ions relat ing t heret o, and, in t he absence t hereof, by t he provisions of t his Tit le. (550) Art . 636. Easement s est ablished by law in t he int erest of privat e persons or for privat e use shall be governed by t he provisions of t his Tit le, wit hout prejudice t o t he provisions of general or local laws and ordinances for t he general welfare. These easement s may be modified by agreement of t he int erest ed part ies, whenever t he law does not prohibit it or no injury is suffered by a t hird person. (551 a ) SECTION 2. - Easement s Relat ing t o Wat ers Art . 637 . Lower est at es are obliged t o receive t he wat ers which nat urally and wit hout t he int ervent ion of man descend from t he higher est at es, as well as t he st ones or eart h which t hey carry wit h t hem. The owner of t he lower est at e cannot const ruct works which will impede t his easement ; neit her can t he owner of t he higher est at e make works which will increase t he burden. (552) Art . 638. The banks of rivers and st reams, even in case t hey are of privat e ownership, are subject t hroughout t heir ent ire lengt h and wit hin a zone of t hree met ers along t heir margins, t o t he easement of public use in t he general int erest of navigat ion, float age, fishing and salvage. Est at es adjoining t he banks of navigable or float able rivers are, furt hermore, subject t o t he easement of t owpat h for t he exclusive service of river navigat ion and float age. If it be necessary for such purpose t o occupy lands of privat e ownership, t he proper indemnit y shall first be paid. (553a ) Art . 639. Whenever for t he diversion or t aking of wat er from a river or brook, or for t he use of any ot her cont inuous or discont inuous st ream, it should be necessary t o build a dam, and t he person who is t o const ruct it is not t he owner of t he banks, or lands which must support it , he may est ablish t he easement of abut ment of a dam, aft er pay ment of t he proper indemnit y . (554) Art . 640. Compulsory easement s for drawing wat er or for wat ering animals can be imposed only for reasons of public use in favor of a t own or village, aft er pay ment of t he proper indemnit y . (555)
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Art . 641. Easement s for drawing wat er and for wat ering animals carry wit h t hem t he obligat ion of t he owners of t he servient est at es t o allow passage t o persons and animals t o t he place where such easement s are t o be used, and t he indemnit y shall include t his service. (556) Art . 642. Any person who may wish t o use upon his own est at e any wat er of which he can dispose shall have t he right t o make it flow t hrough t he int ervening est at es, wit h t he obligat ion t o indemnify t heir owners, as well as t he owners of t he lower est at es upon which t he wat ers may filt er or descend. (557) Art . 643. One desiring t o make use of t he right grant ed in t he preceding art icle is obliged: (1) To prove t hat he can dispose of t he wat er and t hat it is sufficient for t he use for which it is int ended; (2) To show t hat t he proposed right of way is t he most convenient and t he least onerous t o t hird persons; (3) To indemnify t he owner of t he servient est at e in t he manner det ermined by t he laws and regulat ions. (558) Art . 644. The easement of aqueduct for privat e int erest cannot be imposed on buildings, court y ards, annexes, or out houses, or on orchards or gardens already exist ing. (559) Art . 645. The easement of aqueduct does not prevent t he owner of t he servient est at e from closing or fencing it , or from building over t he aqueduct in such manner as not t o cause t he lat t er any damage, or render necessary repairs and cleanings impossible. (560) Art . 646. For legal purposes, t he easement of aqueduct shall be considered as cont inuous and apparent , even t hough t he flow of t he wat er may not be cont inuous, or it s use depends upon t he needs of t he dominant est at e, or upon a schedule of alt ernat e day s or hours. (561 ) Art . 647 . One who for t he purpose of irrigat ing or improving his est at e, has t o const ruct a st op lock or sluice gat e in t he bed of t he st ream from which t he wat er is t o be t aken, may demand t hat t he owners of t he banks permit it s const ruct ion, aft er pay ment of damages, including t hose caused by t he new easement t o such owners and t o t he ot her irrigat ors. (562) Art . 648. The est ablishment , ext ent , form and condit ions of t he servit udes of wat ers, t o which t his sect ion refers, shall be governed by t he special laws relat ing t heret o insofar as no provision t herefor is made in t his Code. (563a ) SECTION 3. - Easement of Right of Way Art . 649. The owner, or any person who by virt ue of a real right may cult ivat e or use any immovable, which is surrounded by ot her immovables pert aining t o ot her persons and wit hout adequat e out let t o a public highway , is ent it led t o demand a right of way t hrough t he neighboring est at es, aft er pay ment of t he proper indemnit y . Should t his easement be est ablished in such a manner t hat it s use may be cont inuous for all t he needs of t he dominant est at e, est ablishing a permanent passage, t he indemnit y shall consist of t he value of t he land occupied and t he amount of t he damage caused t o t he servient est at e. In case t he right of way is limit ed t o t he necessary passage for t he cult ivat ion of t he est at e surrounded by ot hers and for t he gat hering of it s crops t hrough t he servient est at e wit hout a permanent way , t he indemnit y shall consist in t he pay ment of t he damage caused by such encumbrance. This easement is not compulsory if t he isolat ion of t he immovable is due t o t he propriet or's own act s. (564a ) Art . 650. The easement of right of way shall be est ablished at t he point least prejudicial t o t he servient est at e, and, insofar as consist ent wit h t his rule, where t he dist ance from t he dominant est at e t o a public highway may be t he short est . (565) Art . 651. The widt h of t he easement of right of way shall be t hat which is sufficient for t he needs of t he dominant est at e, and may accordingly be changed from t ime t o t ime. (566a ) Art . 652. Whenever a piece of land acquired by sale, exchange or part it ion, is surrounded by ot her est at es of t he vendor, exchanger, or co-owner, he shall be obliged t o grant a right of way wit hout indemnit y . In case of a simple donat ion, t he donor shall be indemnified by t he donee for t he est ablishment of t he right of way .
(567a )
Art . 653. In t he case of t he preceding art icle, if it is t he land of t he grant or t hat becomes isolat ed, he may demand a right of way aft er pay ing a indemnit y . However, t he donor shall not be liable for indemnit y . (n ) Art . 654. If t he right of way is permanent , t he necessary repairs shall be made by t he owner of t he dominant est at e. A proport ionat e share of t he t axes shall be reimbursed by said owner t o t he propriet or of t he servient est at e. (n ) Art . 655. If t he right of way grant ed t o a surrounded est at e ceases t o be necessary because it s owner has joined it t o anot her abut t ing on a public road, t he owner of t he servient est at e may demand t hat t he easement be ext inguished,
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ret urning what he may have received by way of indemnit y . The int erest on t he indemnit y shall be deemed t o be in pay ment of rent for t he use of t he easement . The same rule shall be applied in case a new road is opened giving access t o t he isolat ed est at e. In bot h cases, t he public highway must subst ant ially meet t he needs of t he dominant est at e in order t hat t he easement may be ext inguished. (568a ) Art . 656. If it be indispensable for t he const ruct ion, repair, improvement , alt erat ion or beaut ificat ion of a building, t o carry mat erials t hrough t he est at e of anot her, or t o raise t herein scaffolding or ot her object s necessary for t he work, t he owner of such est at e shall be obliged t o permit t he act , aft er receiving pay ment of t he proper indemnit y for t he damage caused him. (569a ) Art . 657 . Easement s of t he right of way for t he passage of livest ock known as animal pat h, animal t rail or any ot her, and t hose for wat ering places, rest ing places and animal folds, shall be governed by t he ordinances and regulat ions relat ing t heret o, and, in t he absence t hereof, by t he usages and cust oms of t he place. Wit hout prejudice t o right s legally acquired, t he animal pat h shall not exceed in any case t he widt h of 7 5 met ers, and t he animal t rail t hat of 37 met ers and 50 cent imet ers. Whenever it is necessary t o est ablish a compulsory easement of t he right of way or for a wat ering place for animals, t he provisions of t his Sect ion and t hose of Art icles 640 and 641 shall be observed. In t his case t he widt h shall not exceed 10 met ers. (570a ) SECTION 4. - Easement of Part y Wall Art . 658. The easement of part y wall shall be governed by t he provisions of t his Tit le, by t he local ordinances and cust oms insofar as t hey do not conflict wit h t he same, and by t he rules of co-ownership. (571 a ) Art . 659. The exist ence of an easement of part y wall is presumed, unless t here is a t it le, or ext erior sign, or proof t o t he cont rary : (1) In dividing walls of adjoining buildings up t o t he point of common elevat ion; (2) In dividing walls of gardens or y ards sit uat ed in cit ies, t owns, or in rural communit ies; (3) In fences, walls and live hedges dividing rural lands. (572) Art . 660. It is underst ood t hat t here is an ext erior sign, cont rary t o t he easement of part y wall: (1) Whenever in t he dividing wall of buildings t here is a window or opening; (2) Whenever t he dividing wall is, on one side, st raight and plumb on all it s facement , and on t he ot her, it has similar condit ions on t he upper part , but t he lower part slant s or project s out ward; (3) Whenever t he ent ire wall is built wit hin t he boundaries of one of t he est at es; (4) Whenever t he dividing wall bears t he burden of t he binding beams, floors and roof frame of one of t he buildings, but not t hose of t he ot hers; (5) Whenever t he dividing wall bet ween court y ards, gardens, and t enement s is const ruct ed in such a way t hat t he coping sheds t he wat er upon only one of t he est at es; (6) Whenever t he dividing wall, being built of masonry , has st epping st ones, which at cert ain int ervals project from t he surface on one side only , but not on t he ot her; (7 ) Whenever lands inclosed by fences or live hedges adjoin ot hers which are not inclosed. In all t hese cases, t he ownership of t he walls, fences or hedges shall be deemed t o belong exclusively t o t he owner of t he propert y or t enement which has in it s favor t he presumpt ion based on any one of t hese signs. (573) Art . 661. Dit ches or drains opened bet ween t wo est at es are also presumed as common t o bot h, if t here is no t it le or sign showing t he cont rary . There is a sign cont rary t o t he part -ownership whenever t he eart h or dirt removed t o open t he dit ch or t o clean it is only on one side t hereof, in which case t he ownership of t he dit ch shall belong exclusively t o t he owner of t he land having t his ext erior sign in it s favor. (574) Art . 662. The cost of repairs and const ruct ion of part y walls and t he maint enance of fences, live hedges, dit ches, and drains owned in common, shall be borne by all t he owners of t he lands or t enement s having t he part y wall in t heir favor, in proport ion t o t he right of each. Nevert heless, any owner may exempt himself from cont ribut ing t o t his charge by renouncing his part -ownership,
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except when t he part y wall support s a building belonging t o him. (575) Art . 663. If t he owner of a building, support ed by a part y wall desires t o demolish t he building, he may also renounce his part -ownership of t he wall, but t he cost of all repairs and work necessary t o prevent any damage which t he demolit ion may cause t o t he part y wall, on t his occasion only , shall be borne by him. (576) Art . 664. Every owner may increase t he height of t he part y wall, doing at his own expense and pay ing for any damage which may be caused by t he work, even t hough such damage be t emporary . The expenses of maint aining t he wall in t he part newly raised or deepened at it s foundat ion shall also be paid for by him; and, in addit ion, t he indemnit y for t he increased expenses which may be necessary for t he preservat ion of t he part y wall by reason of t he great er height or dept h which has been given it . If t he part y wall cannot bear t he increased height , t he owner desiring t o raise it shall be obliged t o reconst ruct it at his own expense and, if for t his purpose it be necessary t o make it t hicker, he shall give t he space required from his own land. (577) Art . 665. The ot her owners who have not cont ribut ed in giving increased height , dept h or t hickness t o t he wall may , nevert heless, acquire t he right of part -ownership t herein, by pay ing proport ionally t he value of t he work at t he t ime of t he acquisit ion and of t he land used for it s increased t hickness. (578a ) Art . 666. Every part -owner of a part y wall may use it in proport ion t o t he right he may have in t he co-ownership, wit hout int erfering wit h t he common and respect ive uses by t he ot her co-owners. (579a ) SECTION 5. - Easement of Light and View Art . 667 . No part -owner may , wit hout t he consent of t he ot hers, open t hrough t he part y wall any window or apert ure of any kind. (580) Art . 668. The period of prescript ion for t he acquisit ion of an easement of light and view shall be count ed: (1) From t he t ime of t he opening of t he window, if it is t hrough a part y wall; or (2) From t he t ime of t he formal prohibit ion upon t he propriet or of t he adjoining land or t enement , if t he window is t hrough a wall on t he dominant est at e. (n ) Art . 669. When t he dist ances in Art icle 67 0 are not observed, t he owner of a wall which is not part y wall, adjoining a t enement or piece of land belonging t o anot her, can make in it openings t o admit light at t he height of t he ceiling joint s or immediat ely under t he ceiling, and of t he size of t hirt y cent imet ers square, and, in every case, wit h an iron grat ing imbedded in t he wall and wit h a wire screen. Nevert heless, t he owner of t he t enement or propert y adjoining t he wall in which t he openings are made can close t hem should he acquire part -ownership t hereof, if t here be no st ipulat ion t o t he cont rary . He can also obst ruct t hem by const ruct ing a building on his land or by raising a wall t hereon cont iguous t o t hat having such openings, unless an easement of light has been acquired. (581 a ) Art . 67 0. No windows, apert ures, balconies, or ot her similar project ions which afford a direct view upon or t owards an adjoining land or t enement can be made, wit hout leaving a dist ance of t wo met ers bet ween t he wall in which t hey are made and such cont iguous propert y . Neit her can side or oblique views upon or t owards such cont erminous propert y be had, unless t here be a dist ance of sixt y cent imet ers. The nonobservance of t hese dist ances does not give rise t o prescript ion. (582a ) Art . 67 1. The dist ance referred t o in t he preceding art icle shall be measured in cases of direct views from t he out er line of t he wall when t he openings do not project , from t he out er line of t he lat t er when t hey do, and in cases of oblique view from t he dividing line bet ween t he t wo propert ies. (583) Art . 67 2. The provisions of Art icle 67 0 are not applicable t o buildings separat ed by a public way or alley , which is not less t han t hree met ers wide, subject t o special regulat ions and local ordinances. (584a ) Art . 67 3. Whenever by any t it le a right has been acquired t o have direct views, balconies or belvederes overlooking an adjoining propert y , t he owner of t he servient est at e cannot build t hereon at less t han a dist ance of t hree met ers t o be measured in t he manner provided in Art icle 67 1. Any st ipulat ion permit t ing dist ances less t han t hose prescribed in Art icle 67 0 is void. (585a ) SECTION 6. - Drainage of Buildings Art . 67 4. The owner of a building shall be obliged t o const ruct it s roof or covering in such manner t hat t he rain wat er
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shall fall on his own land or on a st reet or public place, and not on t he land of his neighbor, even t hough t he adjacent land may belong t o t wo or more persons, one of whom is t he owner of t he roof. Even if it should fall on his own land, t he owner shall be obliged t o collect t he wat er in such a way as not t o cause damage t o t he adjacent land or t enement . (586a ) Art . 67 5. The owner of a t enement or a piece of land, subject t o t he easement of receiving wat er falling from roofs, may build in such manner as t o receive t he wat er upon his own roof or give it anot her out let in accordance wit h local ordinances or cust oms, and in such a way as not t o cause any nuisance or damage what ever t o t he dominant est at e. (587 ) Art . 67 6. Whenever t he y ard or court of a house is surrounded by ot her houses, and it is not possible t o give an out let t hrough t he house it self t o t he rain wat er collect ed t hereon, t he est ablishment of an easement of drainage can be demanded, giving an out let t o t he wat er at t he point of t he cont iguous lands or t enement s where it s egress may be easiest , and est ablishing a conduit for t he drainage in such manner as t o cause t he least damage t o t he servient est at e, aft er pay ment of t he propert y indemnit y . (583) SECTION 7 . - Int ermediat e Dist ances and Works for Cert ain Const ruct ions and Plant ings Art . 67 7 . No const ruct ions can be built or plant ings made near fort ified places or fort resses wit hout compliance wit h t he condit ions required in special laws, ordinances, and regulat ions relat ing t heret o. (589) Art . 67 8. No person shall build any aqueduct , well, sewer, furnace, forge, chimney , st able, deposit ory of corrosive subst ances, machinery , or fact ory which by reason of it s nat ure or product s is dangerous or noxious, wit hout observing t he dist ances prescribed by t he regulat ions and cust oms of t he place, and wit hout making t he necessary prot ect ive works, subject , in regard t o t he manner t hereof, t o t he condit ions prescribed by such regulat ions. These prohibit ions cannot be alt ered or renounced by st ipulat ion on t he part of t he adjoining propriet ors. In t he absence of regulat ions, such precaut ions shall be t aken as may be considered necessary , in order t o avoid any damage t o t he neighboring lands or t enement s. (590a ) Art . 67 9. No t rees shall be plant ed near a t enement or piece of land belonging t o anot her except at t he dist ance aut horized by t he ordinances or cust oms of t he place, and, in t he absence t hereof, at a dist ance of at least t wo met ers from t he dividing line of t he est at es if t all t rees are plant ed and at a dist ance of at least fift y cent imet ers if shrubs or small t rees are plant ed. Every landowner shall have t he right t o demand t hat t rees hereaft er plant ed at a short er dist ance from his land or t enement be uproot ed. The provisions of t his art icle also apply t o t rees which have grown spont aneously . (591 a ) Art . 680. If t he branches of any t ree should ext end over a neighboring est at e, t enement , garden or y ard, t he owner of t he lat t er shall have t he right t o demand t hat t hey be cut off insofar as t hey may spread over his propert y , and, if it be t he root s of a neighboring t ree which should penet rat e int o t he land of anot her, t he lat t er may cut t hem off himself wit hin his propert y . (592) Art . 681. Fruit s nat urally falling upon adjacent land belong t o t he owner of said land. (n ) SECTION 8. - Easement Against Nuisance (n ) Art . 682. Every building or piece of land is subject t o t he easement which prohibit s t he propriet or or possessor from commit t ing nuisance t hrough noise, jarring, offensive odor, smoke, heat , dust , wat er, glare and ot her causes. Art . 683. Subject t o zoning, healt h, police and ot her laws and regulat ions, fact ories and shops may be maint ained provided t he least possible annoy ance is caused t o t he neighborhood. SECTION 9. - Lat eral and Subjacent Support (n ) Sec. 684. No propriet or shall make such excavat ions upon his land as t o deprive any adjacent land or building of sufficient lat eral or subjacent support . Art . 685. Any st ipulat ion or t est ament ary provision allowing excavat ions t hat cause danger t o an adjacent land or building shall be void. Art . 686. The legal easement of lat eral and subjacent support is not only for buildings st anding at t he t ime t he excavat ions are made but also for const ruct ions t hat may be erect ed. Art . 687 . Any propriet or int ending t o make any excavat ion cont emplat ed in t he t hree preceding art icles shall not ify all owners of adjacent lands.
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CHAPTER 3 VOLUNTARY EASEMENTS Art . 688. Every owner of a t enement or piece of land may est ablish t hereon t he easement s which he may deem suit able, and in t he manner and form which he may deem best , provided he does not cont ravene t he laws, public policy or public order. (594) Art . 689. The owner of a t enement or piece of land, t he usufruct of which belongs t o anot her, may impose t hereon, wit hout t he consent of t he usufruct uary , any servit udes which will not injure t he right of usufruct . (595) Art . 690. Whenever t he naked ownership of a t enement or piece of land belongs t o one person and t he beneficial ownership t o anot her, no perpet ual volunt ary easement may be est ablished t hereon wit hout t he consent of bot h owners. (596) Art . 691. In order t o impose an easement on an undivided t enement , or piece of land, t he consent of all t he co-owners shall be required. The consent given by some only , must be held in abey ance unt il t he last one of all t he co-owners shall have expressed his conformit y . But t he consent given by one of t he co-owners separat ely from t he ot hers shall bind t he grant or and his successors not t o prevent t he exercise of t he right grant ed. (597a ) Art . 692. The t it le and, in a proper case, t he possession of an easement acquired by prescript ion shall det ermine t he right s of t he dominant est at e and t he obligat ions of t he servient est at e. In default t hereof, t he easement shall be governed by such provisions of t his Tit le as are applicable t heret o. (598) Art . 693. If t he owner of t he servient est at e should have bound himself, upon t he est ablishment of t he easement , t o bear t he cost of t he work required for t he use and preservat ion t hereof, he may free himself from t his obligat ion by renouncing his propert y t o t he owner of t he dominant est at e. (599) Tit le VIII. - NUISANCE (n ) Art . 694. A nuisance is any act , omission, est ablishment , business, condit ion of propert y , or any t hing else which: (1) Injures or endangers t he healt h or safet y of ot hers; or (2) Annoy s or offends t he senses; or (3) Shocks, defies or disregards decency or moralit y ; or (4) Obst ruct s or int erferes wit h t he free passage of any public highway or st reet , or any body of wat er; or (5) Hinders or impairs t he use of propert y . Art . 695. Nuisance is eit her public or privat e. A public nuisance affect s a communit y or neighborhood or any considerable number of persons, alt hough t he ext ent of t he annoy ance, danger or damage upon individuals may be unequal. A privat e nuisance is one t hat is not included in t he foregoing definit ion. Art . 696. Every successive owner or possessor of propert y who fails or refuses t o abat e a nuisance in t hat propert y st art ed by a former owner or possessor is liable t herefor in t he same manner as t he one who creat ed it . Art . 697 . The abat ement of a nuisance does not preclude t he right of any person injured t o recover damages for it s past exist ence. Art . 698. Lapse of t ime cannot legalize any nuisance, whet her public or privat e. Art . 699. The remedies against a public nuisance are: (1) A prosecut ion under t he Penal Code or any local ordinance: or (2) A civil act ion; or (3) Abat ement , wit hout judicial proceedings. Art . 7 00. The dist rict healt h officer shall t ake care t hat one or all of t he remedies against a public nuisance are availed of. Art . 7 01. If a civil act ion is brought by reason of t he maint enance of a public nuisance, such act ion shall be commenced by t he cit y or municipal may or. Art . 7 02. The dist rict healt h officer shall det ermine whet her or not abat ement , wit hout judicial proceedings, is t he best remedy against a public nuisance.
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Art . 7 03. A privat e person may file an act ion on account of a public nuisance, if it is specially injurious t o himself. Art . 7 04. Any privat e person may abat e a public nuisance which is specially injurious t o him by removing, or if necessary , by dest roy ing t he t hing which const it ut es t he same, wit hout commit t ing a breach of t he peace, or doing unnecessary injury . But it is necessary : (1) That demand be first made upon t he owner or possessor of t he propert y t o abat e t he nuisance; (2) That such demand has been reject ed; (3) That t he abat ement be approved by t he dist rict healt h officer and execut ed wit h t he assist ance of t he local police; and (4) That t he value of t he dest ruct ion does not exceed t hree t housand pesos. Art . 7 05. The remedies against a privat e nuisance are: (1) A civil act ion; or (2) Abat ement , wit hout judicial proceedings. Art . 7 06. Any person injured by a privat e nuisance may abat e it by removing, or if necessary , by dest roy ing t he t hing which const it ut es t he nuisance, wit hout commit t ing a breach of t he peace or doing unnecessary injury . However, it is indispensable t hat t he procedure for ext rajudicial abat ement of a public nuisance by a privat e person be followed. Art . 7 07 . A privat e person or a public official ext rajudicially abat ing a nuisance shall be liable for damages: (1) If he causes unnecessary injury ; or (2) If an alleged nuisance is lat er declared by t he court s t o be not a real nuisance. Tit le IX. - REGISTRY OF PROPERTY Art . 7 08. The Regist ry of Propert y has for it s object t he inscript ion or annot at ion of act s and cont ract s relat ing t o t he ownership and ot her right s over immovable propert y . (605) Art . 7 09. The t it les of ownership, or of ot her right s over immovable propert y , which are not duly inscribed or annot at ed in t he Regist ry of Propert y shall not prejudice t hird persons. (606) Art . 7 10. The books in t he Regist ry of Propert y shall be public for t hose who have a known int erest in ascert aining t he st at us of t he immovables or real right s annot at ed or inscribed t herein. (607) Art . 7 11. For det ermining what t it les are subject t o inscript ion or annot at ion, as well as t he form, effect s, and cancellat ion of inscript ions and annot at ions, t he manner of keeping t he books in t he Regist ry , and t he value of t he ent ries cont ained in said books, t he provisions of t he Mort gage Law, t he Land Regist rat ion Act , and ot her special laws shall govern. (608a )
BOOK III DIFFERENT MODES OF ACQUIRING OWNERSHIP PRELIMINARY PROVISION Art . 7 12. Ownership is acquired by occupat ion and by int ellect ual creat ion. Ownership and ot her real right s over propert y are acquired and t ransmit t ed by law, by donat ion, by est at e and int est at e succession, and in consequence of cert ain cont ract s, by t radit ion. They may also be acquired by means of prescript ion. (609a ) Tit le I. - OCCUPATION Art . 7 13. Things appropriable by nat ure which are wit hout an owner, such as animals t hat are t he object of hunt ing and fishing, hidden t reasure and abandoned movables, are acquired by occupat ion. (61 0) Art . 7 14. The ownership of a piece of land cannot be acquired by occupat ion. (n ) Art . 7 15. The right t o hunt and t o fish is regulat ed by special laws. (61 1 ) Art . 7 16. The owner of a swarm of bees shall have a right t o pursue t hem t o anot her's land, indemnify ing t he possessor of t he lat t er for t he damage. If t he owner has not pursued t he swarm, or ceases t o do so wit hin t wo consecut ive day s, t he possessor of t he land may occupy or ret ain t he same. The owner of domest icat ed animals may also claim t hem
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wit hin t went y day s t o be count ed from t heir occupat ion by anot her person. This period having expired, t hey shall pert ain t o him who has caught and kept t hem. (61 2a ) Art . 7 17 . Pigeons and fish which from t heir respect ive breeding places pass t o anot her pert aining t o a different owner shall belong t o t he lat t er, provided t hey have not been ent iced by some art icle of fraud. (61 3a ) Art . 7 18. He who by chance discovers hidden t reasure in anot her's propert y shall have t he right grant ed him in art icle 438 of t his Code. (61 4) Art . 7 19. Whoever finds a movable, which is not t reasure, must ret urn it t o it s previous possessor. If t he lat t er is unknown, t he finder shall immediat ely deposit it wit h t he may or of t he cit y or municipalit y where t he finding has t aken place. The finding shall be publicly announced by t he may or for t wo consecut ive weeks in t he way he deems best . If t he movable cannot be kept wit hout det eriorat ion, or wit hout expenses which considerably diminish it s value, it shall be sold at public auct ion eight day s aft er t he publicat ion. Six mont hs from t he publicat ion having elapsed wit hout t he owner having appeared, t he t hing found, or it s value, shall be awarded t o t he finder. The finder and t he owner shall be obliged, as t he case may be, t o reimburse t he expenses. (61 5a ) Art . 7 20. If t he owner should appear in t ime, he shall be obliged t o pay , as a reward t o t he finder, one-t ent h of t he sum or of t he price of t he t hing found. (61 6a ) Tit le II. - INTELLECTUAL CREATION Art . 7 21. By int ellect ual creat ion, t he following persons acquire ownership: (1) The aut hor wit h regard t o his lit erary , dramat ic, hist orical, legal, philosophical, scient ific or ot her work; (2) The composer; as t o his musical composit ion; (3) The paint er, sculpt or, or ot her art ist , wit h respect t o t he product of his art ; (4) The scient ist or t echnologist or any ot her person wit h regard t o his discovery or invent ion. (n ) Art . 7 22. The aut hor and t he composer, ment ioned in Nos. 1 and 2 of t he preceding art icle, shall have t he ownership of t heir creat ions even before t he publicat ion of t he same. Once t heir works are published, t heir right s are governed by t he Copy right laws. The paint er, sculpt or or ot her art ist shall have dominion over t he product of his art even before it is copy right ed. The scient ist or t echnologist has t he ownership of his discovery or invent ion even before it is pat ent ed. (n ) Art . 7 23. Let t ers and ot her privat e communicat ions in writ ing are owned by t he person t o whom t hey are addressed and delivered, but t hey cannot be published or disseminat ed wit hout t he consent of t he writ er or his heirs. However, t he court may aut horize t heir publicat ion or disseminat ion if t he public good or t he int erest of just ice so requires. (n ) Art . 7 24. Special laws govern copy right and pat ent . (429a ) Tit le III. - DONATION CHAPTER 1 NATURE OF DONATIONS Art . 7 25. Donat ion is an act of liberalit y whereby a person disposes grat uit ously of a t hing or right in favor of anot her, who accept s it . (61 8a ) Art . 7 26. When a person gives t o anot her a t hing or right on account of t he lat t er's merit s or of t he services rendered by him t o t he donor, provided t hey do not const it ut e a demandable debt , or when t he gift imposes upon t he donee a burden which is less t han t he value of t he t hing given, t here is also a donat ion. (61 9) Art . 7 27 . Illegal or impossible condit ions in simple and remunerat ory donat ions shall be considered as not imposed. (n ) Art . 7 28. Donat ions which are t o t ake effect upon t he deat h of t he donor part ake of t he nat ure of t est ament ary provisions, and shall be governed by t he rules est ablished in t he Tit le on Succession. (620) Art . 7 29. When t he donor int ends t hat t he donat ion shall t ake effect during t he lifet ime of t he donor, t hough t he propert y shall not be delivered t ill aft er t he donor's deat h, t his shall be a donat ion inter vivos . The fruit s of t he propert y from t he t ime of t he accept ance of t he donat ion, shall pert ain t o t he donee, unless t he donor provides
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ot herwise. (n ) Art . 7 30. The fixing of an event or t he imposit ion of a suspensive condit ion, which may t ake place bey ond t he nat ural expect at ion of life of t he donor, does not dest roy t he nat ure of t he act as a donat ion int er vivos, unless a cont rary int ent ion appears. (n ) Art . 7 31. When a person donat es somet hing, subject t o t he resolut ory condit ion of t he donor's survival, t here is a donat ion inter vivos . (n ) Art . 7 32. Donat ions which are t o t ake effect int er vivos shall be governed by t he general provisions on cont ract s and obligat ions in all t hat is not det ermined in t his Tit le. (621 ) Art . 7 33. Donat ions wit h an onerous cause shall be governed by t he rules on cont ract s and remunerat ory donat ions by t he provisions of t he present Tit le as regards t hat port ion which exceeds t he value of t he burden imposed. (622) Art . 7 34. The donat ion is perfect ed from t he moment t he donor knows of t he accept ance by t he donee. (623) CHAPTER 2 PERSONS WHO MAY GIVE OR RECEIVE A DONATION Art . 7 35. All persons who may cont ract and dispose of t heir propert y may make a donat ion. (624) Art . 7 36. Guardians and t rust ees cannot donat e t he propert y ent rust ed t o t hem. (n ) Art . 7 37 . The donor's capacit y shall be det ermined as of t he t ime of t he making of t he donat ion. (n ) Art . 7 38. Al t hose who are not specially disqualified by law t herefor may accept donat ions. (625) Art . 7 39. The following donat ions shall be void: (1) Those made bet ween persons who were guilt y of adult ery or concubinage at t he t ime of t he donat ion; (2) Those made bet ween persons found guilt y of t he same criminal offense, in considerat ion t hereof; (3) Those made t o a public officer or his wife, descedant s and ascendant s, by reason of his office. In t he case referred t o in No. 1, t he act ion for declarat ion of nullit y may be brought by t he spouse of t he donor or donee; and t he guilt of t he donor and donee may be proved by preponderance of evidence in t he same act ion. (n ) Art . 7 40. Incapacit y t o succeed by will shall be applicable t o donat ions inter vivos . (n ) Art . 7 41. Minors and ot hers who cannot ent er int o a cont ract may become donees but accept ance shall be done t hrough t heir parent s or legal represent at ives. (626a ) Art . 7 42. Donat ions made t o conceived and unborn children may be accept ed by t hose persons who would legally represent t hem if t hey were already born. (627) Art . 7 43. Donat ions made t o incapacit at ed persons shall be void, t hough simulat ed under t he guise of anot her cont ract or t hrough a person who is int erposed. (628) Art . 7 44. Donat ions of t he same t hing t o t wo or more different donees shall be governed by t he provisions concerning t he sale of t he same t hing t o t wo or more different persons. (n ) Art . 7 45. The donee must accept t he donat ion personally , or t hrough an aut horized person wit h a special power for t he purpose, or wit h a general and sufficient power; ot herwise, t he donat ion shall be void. (630) Art . 7 46. Accept ance must be made during t he lifet ime of t he donor and of t he donee. (n ) Art . 7 47 . Persons who accept donat ions in represent at ion of ot hers who may not do so by t hemselves, shall be obliged t o make t he not ificat ion and not at ion of which Art icle 7 49 speaks. (631 ) Art . 7 48. The donat ion of a movable may be made orally or in writ ing. An oral donat ion requires t he simult aneous delivery of t he t hing or of t he document represent ing t he right donat ed. If t he value of t he personal propert y donat ed exceeds five t housand pesos, t he donat ion and t he accept ance shall be made in writ ing, ot herwise, t he donat ion shall be void. (632a ) Art . 7 49. In order t hat t he donat ion of an immovable may be valid, it must be made in a public document , specify ing t herein t he propert y donat ed and t he value of t he charges which t he donee must sat isfy . The accept ance may be made in t he same deed of donat ion or in a separat e public document , but it shall not t ake effect unless it is done during t he lifet ime of t he donor.
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If t he accept ance is made in a separat e inst rument , t he donor shall be not ified t hereof in an aut hent ic form, and t his st ep shall be not ed in bot h inst rument s. (633) CHAPTER 3 EFFECT OF DONATIONS AND LIMITATIONS THEREON Art . 7 50. The donat ions may comprehend all t he present propert y of t he donor, or part t hereof, provided he reserves, in full ownership or in usufruct , sufficient means for t he support of himself, and of all relat ives who, at t he t ime of t he accept ance of t he donat ion, are by law ent it led t o be support ed by t he donor. Wit hout such reservat ion, t he donat ion shall be reduced in pet it ion of any person affect ed. (634a ) Art . 7 51. Donat ions cannot comprehend fut ure propert y . By fut ure propert y is underst ood any t hing which t he donor cannot dispose of at t he t ime of t he donat ion. (635) Art . 7 52. The provisions of Art icle 7 50 not wit hst anding, no person may give or receive, by way of donat ion, more t han he may give or receive by will. The donat ion shall be inofficious in all t hat it may exceed t his limit at ion. (636) Art . 7 53. When a donat ion is made t o several persons joint ly , it is underst ood t o be in equal shares, and t here shall be no right of accret ion among t hem, unless t he donor has ot herwise provided. The preceding paragraph shall not be applicable t o donat ions made t o t he husband and wife joint ly , bet ween whom t here shall be a right of accret ion, if t he cont rary has not been provided by t he donor. (637) Art . 7 54. The donee is subrogat ed t o all t he right s and act ions which in case of evict ion would pert ain t o t he donor. The lat t er, on t he ot her hand, is not obliged t o warrant t he t hings donat ed, save when t he donat ion is onerous, in which case t he donor shall be liable for evict ion t o t he concurrence of t he burden. The donor shall also be liable for evict ion or hidden defect s in case of bad fait h on his part . (638a ) Art . 7 55. The right t o dispose of some of t he t hings donat ed, or of some amount which shall be a charge t hereon, may be reserved by t he donor; but if he should die wit hout having made use of t his right , t he propert y or amount reserved shall belong t o t he donee. (639) Art . 7 56. The ownership of propert y may also be donat ed t o one person and t he usufruct t o anot her or ot hers, provided all t he donees are living at t he t ime of t he donat ion. (640a ) Art . 7 57 . Reversion may be validly est ablished in favor of only t he donor for any case and circumst ances, but not in favor of ot her persons unless t hey are all living at t he t ime of t he donat ion. Any reversion st ipulat ed by t he donor in favor of a t hird person in violat ion of what is provided in t he preceding paragraph shall be void, but shall not nullify t he donat ion. (61 4a ) Art . 7 58. When t he donat ion imposes upon t he donee t he obligat ion t o pay t he debt s of t he donor, if t he clause does not cont ain any declarat ion t o t he cont rary , t he former is underst ood t o be liable t o pay only t he debt s which appear t o have been previously cont ract ed. In no case shall t he donee be responsible for t he debt s exceeding t he value of t he propert y donat ed, unless a cont rary int ent ion clearly appears. (642a ) Art . 7 59. There being no st ipulat ion regarding t he pay ment of debt s, t he donee shall be responsible t herefor only when t he donat ion has been made in fraud of credit ors. The donat ion is alway s presumed t o be in fraud of credit ors, when at t he t ime t hereof t he donor did not reserve sufficient propert y t o pay his debt s prior t o t he donat ion. (643) CHAPTER 4 REVOCATION AND REDUCTION OF DONATIONS Art . 7 60. Every donat ion int er vivos, made by a person having no children or descendant s, legit imat e or legit imat ed by subsequent marriage, or illegit imat e, may be revoked or reduced as provided in t he next art icle, by t he happening of any of t hese event s: (1) If t he donor, aft er t he donat ion, should have legit imat e or legit imat ed or illegit imat e children, even t hough t hey be post humous; (2) If t he child of t he donor, whom t he lat t er believed t o be dead when he made t he donat ion, should t urn out t o be living; (3) If t he donor subsequent ly adopt a minor child. (644a )
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Art . 7 61. In t he cases referred t o in t he preceding art icle, t he donat ion shall be revoked or reduced insofar as it exceeds t he port ion t hat may be freely disposed of by will, t aking int o account t he wh ole est at e of t he donor at t he t ime of t he birt h, appearance or adopt ion of a child. (n ) Art . 7 62. Upon t he revocat ion or reduct ion of t he donat ion by t he birt h, appearance or adopt ion of a child, t he propert y affect ed shall be ret urned or it s value if t he donee has sold t he same. If t he propert y is mort gaged, t he donor may redeem t he mort gage, by pay ing t he amount guarant eed, wit h a right t o recover t he same from t he donee. When t he propert y cannot be ret urned, it shall be est imat ed at what it was wort h at t he t ime of t he donat ion. (645a ) Art . 7 63. The act ion for revocat ion or reduct ion on t he grounds set fort h in art icle 7 60 shall prescribe aft er four y ears from t he birt h of t he first child, or from his legit imat ion, recognit ion or adopt ion, or from t he judicial declarat ion of filiat ion, or from t he t ime informat ion was received regarding t he exist ence of t he child believed dead. This act ion cannot be renounced, and is t ransmit t ed, upon t he deat h of t he donor, t o his legit imat e and illegit imat e children and descendant s. (646a ) Art . 7 64. The donat ion shall be revoked at t he inst ance of t he donor, when t he donee fails t o comply wit h any of t he condit ions which t he former imposed upon t he lat t er. In t his case, t he propert y donat ed shall be ret urned t o t he donor, t he alienat ions made by t he donee and t he mort gages imposed t hereon by him being void, wit h t he limit at ions est ablished, wit h regard t o t hird persons, by t he Mort gage Law and t he Land Regist rat ion Laws. This act ion shall prescribe aft er four y ears from t he noncompliance wit h t he condit ion, may be t ransmit t ed t o t he heirs of t he donor, and may be exercised against t he donee's heirs. (647a ) Art . 7 65. The donat ion may also be revoked at t he inst ance of t he donor, by reason of ingrat it ude in t he following cases: (1) If t he donee should commit some offense against t he person, t he honor or t he propert y of t he donor, or of his wife or children under his parent al aut horit y ; (2) If t he donee imput es t o t he donor any criminal offense, or any act involving moral t urpit ude, even t hough he should prove it , unless t he crime or t he act has been commit t ed against t he donee himself, his wife or children under his aut horit y ; (3) If he unduly refuses him support when t he donee is legally or morally bound t o give support t o t he donor.
(648a )
Art . 7 66. Alt hough t he donat ion is revoked on account of ingrat it ude, nevert heless, t he alienat ions and mort gages effect ed before t he not at ion of t he complaint for revocat ion in t he Regist ry of Propert y shall subsist . Lat er ones shall be void. (649) Art . 7 67 . In t he case referred t o in t he first paragraph of t he preceding art icle, t he donor shall have a right t o demand from t he donee t he value of propert y alienat ed which he cannot recover from t hird persons, or t he sum for which t he same has been mort gaged. The value of said propert y shall be fixed as of t he t ime of t he donat ion. (650) Art . 7 68. When t he donat ion is revoked for any of t he causes st at ed in Art icle 7 60, or by reason of ingrat it ude, or when it is reduced because it is inofficious, t he donee shall not ret urn t he fruit s except from t he filing of t he complaint . If t he revocat ion is based upon noncompliance wit h any of t he condit ions imposed in t he donat ion, t he donee shall ret urn not only t he propert y but also t he fruit s t hereof which he may have received aft er having failed t o fulfill t he condit ion. (651 ) Art . 7 69. The act ion grant ed t o t he donor by reason of ingrat it ude cannot be renounced in advance. This act ion prescribes wit hin one y ear, t o be count ed from t he t ime t he donor had knowledge of t he fact and it was possible for him t o bring t he act ion. (652) Art . 7 7 0. This act ion shall not be t ransmit t ed t o t he heirs of t he donor, if t he lat t er did not inst it ut e t he same, alt hough he could have done so, and even if he should die before t he expirat ion of one y ear. Neit her can t his act ion be brought against t he heir of t he donee, unless upon t he lat t er's deat h t he complaint has been filed. (653) Art . 7 7 1. Donat ions which in accordance wit h t he provisions of Art icle 7 52, are inofficious, bearing in mind t he est imat ed net value of t he donor's propert y at t he t ime of his deat h, shall be reduced wit h regard t o t he excess; but t his reduct ion shall not prevent t he donat ions from t aking effect during t he life of t he donor, nor shall it bar t he donee from appropriat ing t he fruit s.
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For t he reduct ion of donat ions t he provisions of t his Chapt er and of Art icles 911 and 912 of t his Code shall govern. (654) Art . 7 7 2. Only t hose who at t he t ime of t he donor's deat h have a right t o t he legit ime and t heir heirs and successors in int erest may ask for t he reduct ion or inofficious donat ions. Those referred t o in t he preceding paragraph cannot renounce t heir right during t he lifet ime of t he donor, eit her by express declarat ion, or by consent ing t o t he donat ion. The donees, devisees and legat ees, who are not ent it led t o t he legit ime and t he credit ors of t he deceased can neit her ask for t he reduct ion nor avail t hemselves t hereof. (655a ) Art . 7 7 3. If, t here being t wo or more donat ions, t he disposable port ion is not sufficient t o cover all of t hem, t hose of t he more recent dat e shall be suppressed or reduced wit h regard t o t he excess. (656) Tit le IV. - SUCCESSION CHAPTER 1 GENERAL PROVISIONS Art . 7 7 4. Succession is a mode of acquisit ion by virt ue of which t he propert y , right s and obligat ions t o t he ext ent of t he value of t he inherit ance, of a person are t ransmit t ed t hrough his deat h t o anot her or ot hers eit her by his will or by operat ion of law. (n ) Art . 7 7 5. In t his Tit le, "decedent " is t he general t erm applied t o t he person whose propert y is t ransmit t ed t hrough succession, whet her or not he left a will. If he left a will, he is also called t he t est at or. (n ) Art . 7 7 6. The inherit ance includes all t he propert y , right s and obligat ions of a person which are not ext inguished by his deat h. (659) Art . 7 7 7 . The right s t o t he succession are t ransmit t ed from t he moment of t he deat h of t he decedent . (657a ) Art . 7 7 8. Succession may be: (1) Test ament ary ; (2) Legal or int est at e; or (3) Mixed. (n ) Art . 7 7 9. Test ament ary succession is t hat which result s from t he designat ion of an heir, made in a will execut ed in t he form prescribed by law. (n ) Art . 7 80. Mixed succession is t hat effect ed part ly by will and part ly by operat ion of law. (n ) Art . 7 81. The inherit ance of a person includes not only t he propert y and t he t ransmissible right s and obligat ions exist ing at t he t ime of his deat h, but also t hose which have accrued t heret o since t he opening of t he succession. (n ) Art . 7 82. An heir is a person called t o t he succession eit her by t he provision of a will or by operat ion of law. Devisees and legat ees are persons t o whom gift s of real and personal propert y are respect ively given by virt ue of a will.
(n )
CHAPTER 2 TESTAMENTARY SUCCESSION SECTION 1. - Wills SUBSECTION 1. - Wills in General Art . 7 83. A will is an act whereby a person is permit t ed, wit h t he formalit ies prescribed by law, t o cont rol t o a cert ain degree t he disposit ion of t his est at e, t o t ake effect aft er his deat h. (667a ) Art . 7 84. The making of a will is a st rict ly personal act ; it cannot be left in whole or in part of t he discret ion of a t hird person, or accomplished t hrough t he inst rument alit y of an agent or at t orney . (670a ) Art . 7 85. The durat ion or efficacy of t he designat ion of heirs, devisees or legat ees, or t he det erminat ion of t he port ions which t hey are t o t ake, when referred t o by name, cannot be left t o t he discret ion of a t hird person. (670a ) Art . 7 86. The t est at or may ent rust t o a t hird person t he dist ribut ion of specific propert y or sums of money t hat he may leave in general t o specified classes or causes, and also t he designat ion of t he persons, inst it ut ions or est ablishment s t o which such propert y or sums are t o be given or applied. (671 a )
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Art . 7 87 . The t est at or may not make a t est ament ary disposit ion in such manner t hat anot her person has t o det ermine whet her or not it is t o be operat ive. (n ) Art . 7 88. If a t est ament ary disposit ion admit s of different int erpret at ions, in case of doubt , t hat int erpret at ion by which t he disposit ion is t o be operat ive shall be preferred. (n ) Art . 7 89. When t here is an imperfect descript ion, or when no person or propert y exact ly answers t he descript ion, mist akes and omissions must be correct ed, if t he error appears from t he cont ext of t he will or from ext rinsic evidence, excluding t he oral declarat ions of t he t est at or as t o his int ent ion; and when an uncert aint y arises upon t he face of t he will, as t o t he applicat ion of any of it s provisions, t he t est at or's int ent ion is t o be ascert ained from t he words of t he will, t aking int o considerat ion t he circumst ances under which it was made, excluding such oral declarat ions. (n ) Art . 7 90. The words of a will are t o be t aken in t heir ordinary and grammat ical sense, unless a clear int ent ion t o use t hem in anot her sense can be gat hered, and t hat ot her can be ascert ained. Technical words in a will are t o be t aken in t heir t echnical sense, unless t he cont ext clearly indicat es a cont rary int ent ion, or unless it sat isfact orily appears t hat he was unacquaint ed wit h such t echnical sense. (675a ) Art . 7 91. The words of a will are t o receive an int erpret at ion which will give t o every expression some effect , rat her t han one which will render any of t he expressions inoperat ive; and of t wo modes of int erpret ing a will, t hat is t o be preferred which will prevent int est acy . (n ) Art . 7 92. The invalidit y of one of several disposit ions cont ained in a will does not result in t he invalidit y of t he ot her disposit ions, unless it is t o be presumed t hat t he t est at or would not have made such ot her disposit ions if t he first invalid disposit ion had not been made. (n ) Art . 7 93. Propert y acquired aft er t he making of a will shall only pass t hereby , as if t he t est at or had possessed it at t he t ime of making t he will, should it expressly appear by t he will t hat such was his int ent ion. (n ) Art . 7 94. Every devise or legacy shall cover all t he int erest which t he t est at or could device or bequeat h in t he propert y disposed of, unless it clearly appears from t he will t hat he int ended t o convey a less int erest . (n ) Art . 7 95. The validit y of a will as t o it s form depends upon t he observance of t he law in force at t he t ime it is made. (n ) SUBSECTION 2. - Test ament ary Capacit y and Int ent Art . 7 96. All persons who are not expressly prohibit ed by law may make a will. (662) Art . 7 97 . Persons of eit her sex under eight een y ears of age cannot make a will. (n ) Art . 7 98. In order t o make a will it is essent ial t hat t he t est at or be of sound mind at t he t ime of it s execut ion. (n ) Art . 7 99. To be of sound mind, it is not necessary t hat t he t est at or be in full possession of all his reasoning facult ies, or t hat his mind be wholly unbroken, unimpaired, or unshat t ered by disease, injury or ot her cause. It shall be sufficient if t he t est at or was able at t he t ime of making t he will t o know t he nat ure of t he est at e t o be disposed of, t he proper object s of his bount y , and t he charact er of t he t est ament ary act . (n ) Art . 800. The law presumes t hat every person is of sound mind, in t he absence of proof t o t he cont rary . The burden of proof t hat t he t est at or was not of sound mind at t he t ime of making his disposit ions is on t he person who opposes t he probat e of t he will; but if t he t est at or, one mont h, or less, before making his will was publicly known t o be insane, t he person who maint ains t he validit y of t he will must prove t hat t he t est at or made it during a lucid int erval.
(n )
Art . 801. Supervening incapacit y does not invalidat e an effect ive will, nor is t he will of an incapable validat ed by t he supervening of capacit y . (n ) Art . 802. A married woman may make a will wit hout t he consent of her husband, and wit hout t he aut horit y of t he court . (n ) Art . 803. A married woman may dispose by will of all her separat e propert y as well as her share of t he conjugal part nership or absolut e communit y propert y . (n ) SUBSECTION 3. - Forms of Wills Art . 804. Every will must be in writ ing and execut ed in a language or dialect known t o t he t est at or. (n ) Art . 805. Every will, ot her t han a holographic will, must be subscribed at t he end t hereof by t he t est at or himself or by t he t est at or's name writ t en by some ot her person in his presence, and by his express direct ion, and at t est ed and subscribed by t hree or more credible wit nesses in t he presence of t he t est at or and of one anot her.
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The t est at or or t he person request ed by him t o writ e his name and t he inst rument al wit nesses of t he will, shall also sign, as aforesaid, each and every page t hereof, except t he last , on t he left margin, and all t he pages shall be numbered correlat ively in let t ers placed on t he upper part of each page. The at t est at ion shall st at e t he number of pages used upon which t he will is writ t en, and t he fact t hat t he t est at or signed t he will and every page t hereof, or caused some ot her person t o writ e his name, under his express direct ion, in t he presence of t he inst rument al wit nesses, and t hat t he lat t er wit nessed and signed t he will and all t he pages t hereof in t he presence of t he t est at or and of one anot her. If t he at t est at ion clause is in a language not known t o t he wit nesses, it shall be int erpret ed t o t hem. (n ) Art . 806. Every will must be acknowledged before a not ary public by t he t est at or and t he wit nesses. The not ary public shall not be required t o ret ain a copy of t he will, or file anot her wit h t he Office of t he Clerk of Court . (n ) Art . 807 . If t he t est at or be deaf, or a deaf-mut e, he must personally read t he will, if able t o do so; ot herwise, he shall designat e t wo persons t o read it and communicat e t o him, in some pract icable manner, t he cont ent s t hereof. (n ) Art . 808. If t he t est at or is blind, t he will shall be read t o him t wice; once, by one of t he subscribing wit nesses, and again, by t he not ary public before whom t he will is acknowledged. (n ) Art . 809. In t he absence of bad fait h, forgery , or fraud, or undue and improper pressure and influence, defect s and imperfect ions in t he form of at t est at ion or in t he language used t herein shall not render t he will invalid if it is proved t hat t he will was in fact execut ed and at t est ed in subst ant ial compliance wit h all t he requirement s of Art icle 805. (n ) Art . 810. A person may execut e a holographic will which must be ent irely writ t en, dat ed, and signed by t he hand of t he t est at or himself. It is subject t o no ot her form, and may be made in or out of t he Philippines, and need not be wit nessed. (678, 688a ) Art . 811. In t he probat e of a holographic will, it shall be necessary t hat at least one wit ness who knows t he handwrit ing and signat ure of t he t est at or explicit ly declare t hat t he will and t he signat ure are in t he handwrit ing of t he t est at or. If t he will is cont est ed, at least t hree of such wit nesses shall be required. In t he absence of any compet ent wit ness referred t o in t he preceding paragraph, and if t he court deem it necessary , expert t est imony may be resort ed t o. (61 9a ) Art . 812. In holographic wills, t he disposit ions of t he t est at or writ t en below his signat ure must be dat ed and signed by him in order t o make t hem valid as t est ament ary disposit ions. (n ) Art . 813. When a number of disposit ions appearing in a holographic will are signed wit hout being dat ed, and t he last disposit ion has a signat ure and a dat e, such dat e validat es t he disposit ions preceding it , what ever be t he t ime of prior disposit ions. (n ) Art . 814. In case of any insert ion, cancellat ion, erasure or alt erat ion in a holographic will, t he t est at or must aut hent icat e t he same by his full signat ure. (n ) Art . 815. When a Filipino is in a foreign count ry , he is aut horized t o make a will in any of t he forms est ablished by t he law of t he count ry in which he may be. Such will may be probat ed in t he Philippines. (n ) Art . 816. The will of an alien who is abroad produces effect in t he Philippines if made wit h t he formalit ies prescribed by t he law of t he place in which he resides, or according t o t he formalit ies observed in his count ry , or in conformit y wit h t hose which t his Code prescribes. (n ) Art . 817 . A will made in t he Philippines by a cit izen or subject of anot her count ry , which is execut ed in accordance wit h t he law of t he count ry of which he is a cit izen or subject , and which might be proved and allowed by t he law of his own count ry , shall have t he same effect as if execut ed according t o t he laws of t he Philippines. (n ) Art . 818. Two or more persons cannot make a will joint ly , or in t he same inst rument , eit her for t heir reciprocal benefit or for t he benefit of a t hird person. (669) Art . 819. Wills, prohibit ed by t he preceding art icle, execut ed by Filipinos in a foreign count ry shall not be valid in t he Philippines, even t hough aut horized by t he laws of t he count ry where t hey may have been execut ed. (733a ) SUBSECTION 4. - Wit nesses t o Wills Art . 820. Any person of sound mind and of t he age of eight een y ears or more, and not bind, deaf or dumb, and able t o read and writ e, may be a wit ness t o t he execut ion of a will ment ioned in Art icle 805 of t his Code. (n ) Art . 821. The following are disqualified from being wit nesses t o a will: (1) Any person not domiciled in t he Philippines; (2) Those who have been convict ed of falsificat ion of a document , perjury or false t est imony . (n )
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Art . 822. If t he wit nesses at t est ing t he execut ion of a will are compet ent at t he t ime of at t est ing, t heir becoming subsequent ly incompet ent shall not prevent t he allowance of t he will. (n ) Art . 823. If a person at t est s t he execut ion of a will, t o whom or t o whose spouse, or parent , or child, a devise or legacy is given by such will, such devise or legacy shall, so far only as concerns such person, or spouse, or parent , or child of such person, or any one claiming under such person or spouse, or parent , or child, be void, unless t here are t hree ot her compet ent wit nesses t o such will. However, such person so at t est ing shall be admit t ed as a wit ness as if such devise or legacy had not been made or given. (n ) Art . 824. A mere charge on t he est at e of t he t est at or for t he pay ment of debt s due at t he t ime of t he t est at or's deat h does not prevent his credit ors from being compet ent wit nesses t o his will. (n ) SUBSECTION 5. - Codicils and Incorporat ion by Reference Art . 825. A codicil is supplement or addit ion t o a will, made aft er t he execut ion of a will and annexed t o be t aken as a part t hereof, by which disposit ion made in t he original will is explained, added t o, or alt ered. (n ) Art . 826. In order t hat a codicil may be effect ive, it shall be execut ed as in t he case of a will. (n ) Art . 827 . If a will, execut ed as required by t his Code, incorporat es int o it self by reference any document or paper, such document or paper shall not be considered a part of t he will unless t he following requisit es are present : (1) The document or paper referred t o in t he will must be in exist ence at t he t ime of t he execut ion of t he will; (2) The will must clearly describe and ident ify t he same, st at ing among ot her t hings t he number of pages t hereof; (3) It must be ident ified by clear and sat isfact ory proof as t he document or paper referred t o t herein; and (4) It must be signed by t he t est at or and t he wit nesses on each and every page, except in case of voluminous books of account or invent ories. (n ) SUBSECTION 6. - Revocat ion of Wills and Test ament ary Disposit ions Art . 828. A will may be revoked by t he t est at or at any t ime before his deat h. Any waiver or rest rict ion of t his right is void. (737a ) Art . 829. A revocat ion done out side t he Philippines, by a person who does not have his domicile in t his count ry , is valid when it is done according t o t he law of t he place where t he will was made, or according t o t he law of t he place in which t he t est at or had his domicile at t he t ime; and if t he revocat ion t akes place in t his count ry , when it is in accordance wit h t he provisions of t his Code. (n ) Art . 830. No will shall be revoked except in t he following cases: (1) By implicat ion of law; or (2) By some will, codicil, or ot her writ ing execut ed as provided in case of wills; or (3) By burning, t earing, cancelling, or oblit erat ing t he will wit h t he int ent ion of revoking it , by t he t est at or himself, or by some ot her person in his presence, and by his express direct ion. If burned, t orn, cancelled, or oblit erat ed by some ot her person, wit hout t he express direct ion of t he t est at or, t he will may st ill be est ablished, and t he est at e dist ribut ed in accordance t herewit h, if it s cont ent s, and due execut ion, and t he fact of it s unaut horized dest ruct ion, cancellat ion, or oblit erat ion are est ablished according t o t he Rules of Court . (n ) Art . 831. Subsequent wills which do not revoke t he previous ones in an express manner, annul only such disposit ions in t he prior wills as are inconsist ent wit h or cont rary t o t hose cont ained in t he lat t er wills. (n ) Art . 832. A revocat ion made in a subsequent will shall t ake effect , even if t he new will should become inoperat ive by reason of t he incapacit y of t he heirs, devisees or legat ees designat ed t herein, or by t heir renunciat ion. (740a ) Art . 833. A revocat ion of a will based on a false cause or an illegal cause is null and void. (n ) Art . 834. The recognit ion of an illegit imat e child does not lose it s legal effect , even t hough t he will wherein it was made should be revoked. (71 4) SUBSECTION 7 . - Republicat ion and Revival of Wills Art . 835. The t est at or cannot republish, wit hout reproducing in a subsequent will, t he disposit ions cont ained in a previous one which is void as t o it s form. (n ) Art . 836. The execut ion of a codicil referring t o a previous will has t he effect of republishing t he will as modified by t he codicil. (n )
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Art . 837 . If aft er making a will, t he t est at or makes a second will expressly revoking t he first , t he revocat ion of t he second will does not revive t he first will, which can be revived only by anot her will or codicil. (739a ) SUBSECTION 8. - Allowance and Disallowance of Wills Art . 838. No will shall pass eit her real or personal propert y unless it is proved and allowed in accordance wit h t he Rules of Court . The t est at or himself may , during his lifet ime, pet it ion t he court having jurisdict ion for t he allowance of his will. In such case, t he pert inent provisions of t he Rules of Court for t he allowance of wills aft er t he t est at or's a deat h shall govern. The Supreme Court shall formulat e such addit ional Rules of Court as may be necessary for t he allowance of wills on pet it ion of t he t est at or. Subject t o t he right of appeal, t he allowance of t he will, eit her during t he lifet ime of t he t est at or or aft er his deat h, shall be conclusive as t o it s due execut ion. (n ) Art . 839. The will shall be disallowed in any of t he following cases: (1) If t he formalit ies required by law have not been complied wit h; (2) If t he t est at or was insane, or ot herwise ment ally incapable of making a will, at t he t ime of it s execut ion; (3) If it was execut ed t hrough force or under duress, or t he influence of fear, or t hreat s; (4) If it was procured by undue and improper pressure and influence, on t he part of t he beneficiary or of some ot her person; (5) If t he signat ure of t he t est at or was procured by fraud; (6) If t he t est at or act ed by mist ake or did not int end t hat t he inst rument he signed should be his will at t he t ime of affixing his signat ure t heret o. (n ) SECTION 2. - Inst it ut ion of Heir Art . 840. Inst it ut ion of heir is an act by virt ue of which a t est at or designat es in his will t he person or persons who are t o succeed him in his propert y and t ransmissible right s and obligat ions. (n ) Art . 841. A will shall be valid even t hough it should not cont ain an inst it ut ion of an heir, or such inst it ut ion should not comprise t he ent ire est at e, and even t hough t he person so inst it ut ed should not accept t he inherit ance or should be incapacit at ed t o succeed. In such cases t he t est ament ary disposit ions made in accordance wit h law shall be complied wit h and t he remainder of t he est at e shall pass t o t he legal heirs. (764) Art . 842. One who has no compulsory heirs may dispose by will of all his est at e or any part of it in favor of any person having capacit y t o succeed. One who has compulsory heirs may dispose of his est at e provided he does not cont ravene t he provisions of t his Code wit h regard t o t he legit ime of said heirs. (763a ) Art . 843. The t est at or shall designat e t he heir by his name and surname, and when t here are t wo persons having t he same names, he shall indicat e some circumst ance by which t he inst it ut ed heir may be known. Even t hough t he t est at or may have omit t ed t he name of t he heir, should he designat e him in such manner t hat t here can be no doubt as t o who has been inst it ut ed, t he inst it ut ion shall be valid. (772) Art . 844. An error in t he name, surname, or circumst ances of t he heir shall not vit iat e t he inst it ut ion when it is possible, in any ot her manner, t o know wit h cert aint y t he person inst it ut ed. If among persons having t he same names and surnames, t here is a similarit y of circumst ances in such a way t hat , even wit h t he use of t he ot her proof, t he person inst it ut ed cannot be ident ified, none of t hem shall be an heir. (773a ) Art . 845. Every disposit ion in favor of an unknown person shall be void, unless by some event or circumst ance his ident it y becomes cert ain. However, a disposit ion in favor of a definit e class or group of persons shall be valid. (750a ) Art . 846. Heirs inst it ut ed wit hout designat ion of shares shall inherit in equal part s. (765) Art . 847 . When t he t est at or inst it ut es some heirs individually and ot hers collect ively as when he say s, "I designate as my heirs A and B, and the children of C," t hose collect ively designat ed shall be considered as individually inst it ut ed, unless it clearly appears t hat t he int ent ion of t he t est at or was ot herwise. (769a )
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Art . 848. If t he t est at or should inst it ut e his brot hers and sist ers, and he has some of full blood and ot hers of half blood, t he inherit ance shall be dist ribut ed equally unless a different int ent ion appears. (770a ) Art . 849. When t he t est at or calls t o t he succession a person and his children t hey are all deemed t o have been inst it ut ed simult aneously and not successively . (771 ) Art . 850. The st at ement of a false cause for t he inst it ut ion of an heir shall be considered as not writ t en, unless it appears from t he will t hat t he t est at or would not have made such inst it ut ion if he had known t he falsit y of such cause.
(767a )
Art . 851. If t he t est at or has inst it ut ed only one heir, and t he inst it ut ion is limit ed t o an aliquot part of t he inherit ance, legal succession t akes place wit h respect t o t he remainder of t he est at e. The same rule applies if t he t est at or has inst it ut ed several heirs, each being limit ed t o an aliquot part , and all t he part s do not cover t he whole inherit ance. (n ) Art . 852. If it was t he int ent ion of t he t est at or t hat t he inst it ut ed heirs should become sole heirs t o t he whole est at e, or t he whole free port ion, as t he case may be, and each of t hem has been inst it ut ed t o an aliquot part of t he inherit ance and t heir aliquot part s t oget her do not cover t he whole inherit ance, or t he whole free port ion, each part shall be increased proport ionally . (n ) Art . 853. If each of t he inst it ut ed heirs has been given an aliquot part of t he inherit ance, and t he part s t oget her exceed t he whole inherit ance, or t he whole free port ion, as t he case may be, each part shall be reduced proport ionally .
(n )
Art . 854. The pret erit ion or omission of one, some, or all of t he compulsory heirs in t he direct line, whet her living at t he t ime of t he execut ion of t he will or born aft er t he deat h of t he t est at or, shall annul t he inst it ut ion of heir; but t he devises and legacies shall be valid insofar as t hey are not inofficious. If t he omit t ed compulsory heirs should die before t he t est at or, t he inst it ut ion shall be effect ual, wit hout prejudice t o t he right of represent at ion. (81 4a ) Art . 855. The share of a child or descendant omit t ed in a will must first be t aken from t he part of t he est at e not disposed of by t he will, if any ; if t hat is not sufficient , so much as may be necessary must be t aken proport ionally from t he shares of t he ot her compulsory heirs. (1 080a ) Art . 856. A volunt ary heir who dies before t he t est at or t ransmit s not hing t o his heirs. A compulsory heir who dies before t he t est at or, a person incapacit at ed t o succeed, and one who renounces t he inherit ance, shall t ransmit no right t o his own heirs except in cases expressly provided for in t his Code. (766a ) SECTION 3. - Subst it ut ion of Heirs Art . 857 . Subst it ut ion is t he appoint ment of anot her heir so t hat he may ent er int o t he inherit ance in default of t he heir originally inst it ut ed. (n) Art . 858. Subst it ut ion of heirs may be: (1) Simple or common; (2) Brief or compendious; (3) Reciprocal; or (4) Fideicommissary . (n ) Art . 859. The t est at or may designat e one or more persons t o subst it ut e t he heir or heirs inst it ut ed in case such heir or heirs should die before him, or should not wish, or should be incapacit at ed t o accept t he inherit ance. A simple subst it ut ion, wit hout a st at ement of t he cases t o which it refers, shall comprise t he t hree ment ioned in t he preceding paragraph, unless t he t est at or has ot herwise provided. (774) Art . 860. Two or more persons may be subst it ut ed for one; and one person for t wo or more heirs. (778) Art . 861. If heirs inst it ut ed in unequal shares should be reciprocally subst it ut ed, t he subst it ut e shall acquire t he share of t he heir who dies, renounces, or is incapacit at ed, unless it clearly appears t hat t he int ent ion of t he t est at or was ot herwise. If t here are more t han one subst it ut e, t hey shall have t he same share in t he subst it ut ion as in t he inst it ut ion. (779a ) Art . 862. The subst it ut e shall be subject t o t he same charges and condit ions imposed upon t he inst it ut ed heir, unless and t est at or has expressly provided t he cont rary , or t he charges or condit ions are personally applicable only t o t he heir inst it ut ed. (780)
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Art . 863. A fideicommissary subst it ut ion by virt ue of which t he fiduciary or first heir inst it ut ed is ent rust ed wit h t he obligat ion t o preserve and t o t ransmit t o a second heir t he whole or part of t he inherit ance, shall be valid and shall t ake effect , provided such subst it ut ion does not go bey ond one degree from t he heir originally inst it ut ed, and provided furt her, t hat t he fiduciary or first heir and t he second heir are living at t he t ime of t he deat h of t he t est at or. (781 a ) Art . 864. A fideicommissary subst it ut ion can never burden t he legit ime. (782a ) Art . 865. Every fideicommissary subst it ut ion must be expressly made in order t hat it may be valid. The fiduciary shall be obliged t o deliver t he inherit ance t o t he second heir, wit hout ot her deduct ions t han t hose which arise from legit imat e expenses, credit s and improvement s, save in t he case where t he t est at or has provided ot herwise.
(783)
Art . 866. The second heir shall acquire a right t o t he succession from t he t ime of t he t est at or's deat h, even t hough he should die before t he fiduciary . The right of t he second heir shall pass t o his heirs. (784) Art . 867 . The following shall not t ake effect : (1) Fideicommissary subst it ut ions which are not made in an express manner, eit her by giving t hem t his name, or imposing upon t he fiduciary t he absolut e obligat ion t o deliver t he propert y t o a second heir; (2) Provisions which cont ain a perpet ual prohibit ion t o alienat e, and even a t emporary one, bey ond t he limit fixed in art icle 863; (3) Those which impose upon t he heir t he charge of pay ing t o various persons successively , bey ond t he limit prescribed in art icle 863, a cert ain income or pension; (4) Those which leave t o a person t he whole part of t he heredit ary propert y in order t hat he may apply or invest t he same according t o secret inst ruct ions communicat ed t o him by t he t est at or. (785a ) Art . 868. The nullit y of t he fideicommissary subst it ut ion does not prejudice t he validit y of t he inst it ut ion of t he heirs first designat ed; t he fideicommissary clause shall simply be considered as not writ t en. (7 86) Art . 869. A provision whereby t he t est at or leaves t o a person t he whole or part of t he inherit ance, and t o anot her t he usufruct , shall be valid. If he gives t he usufruct t o various persons, not simult aneously , but successively , t he provisions of Art icle 863 shall apply . (787a ) Art . 87 0. The disposit ions of t he t est at or declaring all or part of t he est at e inalienable for more t han t went y y ears are void. (n ) SECTION 4. - Condit ional Test ament ary Disposit ions and Test ament ary Disposit ions Wit h a Term Art . 87 1. The inst it ut ion of an heir may be made condit ionally , or for a cert ain purpose or cause. (790a ) Art . 87 2. The t est at or cannot impose any charge, condit ion, or subst it ut ion what soever upon t he legit imes prescribed in t his Code. Should he do so, t he same shall be considered as not imposed. (81 3a ) Art . 87 3. Impossible condit ions and t hose cont rary t o law or good cust oms shall be considered as not imposed and shall in no manner prejudice t he heir, even if t he t est at or should ot herwise provide. (792a ) Art . 87 4. An absolut e condit ion not t o cont ract a first or subsequent marriage shall be considered as not writ t en unless such condit ion has been imposed on t he widow or widower by t he deceased spouse, or by t he lat t er's ascendant s or descendant s. Nevert heless, t he right of usufruct , or an allowance or some personal prest at ion may be devised or bequeat hed t o any person for t he t ime during which he or she should remain unmarried or in widowhood. (793a ) Art . 87 5. Any disposit ion made upon t he condit ion t hat t he heir shall make some provision in his will in favor of t he t est at or or of any ot her person shall be void. (794a ) Art . 87 6. Any purely pot est at ive condit ion imposed upon an heir must be fulfilled by him as soon as he learns of t he t est at or's deat h. This rule shall not apply when t he condit ion, already complied wit h, cannot be fulfilled again. (795a ) Art . 87 7 . If t he condit ion is casual or mixed, it shall be sufficient if it happens or be fulfilled at any t ime before or aft er t he deat h of t he t est at or, unless he has provided ot herwise. Should it have exist ed or should it have been fulfilled at t he t ime t he will was execut ed and t he t est at or was unaware t hereof, it shall be deemed as complied wit h. If he had knowledge t hereof, t he condit ion shall be considered fulfilled only when it is of such a nat ure t hat it can no
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longer exist or be complied wit h again. (796) Art . 87 8. A disposit ion wit h a suspensive t erm does not prevent t he inst it ut ed heir from acquiring his right s and t ransmit t ing t hem t o his heirs even before t he arrival of t he t erm. (799a ) Art . 87 9. If t he pot est at ive condit ion imposed upon t he heir is negat ive, or consist s in not doing or not giving somet hing, he shall comply by giving a securit y t hat he will not do or give t hat which has been prohibit ed by t he t est at or, and t hat in case of cont ravent ion he will ret urn what ever he may have received, t oget her wit h it s fruit s and int erest s. (800a ) Art . 880. If t he heir be inst it ut ed under a suspensive condit ion or t erm, t he est at e shall be placed under administ rat ion unt il t he condit ion is fulfilled, or unt il it becomes cert ain t hat it cannot be fulfilled, or unt il t he arrival of t he t erm. The same shall be done if t he heir does not give t he securit y required in t he preceding art icle. (801 a ) Art . 881. The appoint ment of t he administ rat or of t he est at e ment ioned in t he preceding art icle, as well as t he manner of t he administ rat ion and t he right s and obligat ions of t he administ rat or shall be governed by t he Rules of Court . (804a ) Art . 882. The st at ement of t he object of t he inst it ut ion, or t he applicat ion of t he propert y left by t he t est at or, or t he charge imposed by him, shall not be considered as a condit ion unless it appears t hat such was his int ent ion. That which has been left in t his manner may be claimed at once provided t hat t he inst it ut ed heir or his heirs give securit y for compliance wit h t he wishes of t he t est at or and for t he ret urn of any t hing he or t hey may receive, t oget her wit h it s fruit s and int erest s, if he or t hey should disregard t his obligat ion. (797a ) Art . 883. When wit hout t he fault of t he heir, an inst it ut ion referred t o in t he preceding art icle cannot t ake effect in t he exact manner st at ed by t he t est at or, it shall be complied wit h in a manner most analogous t o and in conformit y wit h his wishes. If t he person int erest ed in t he condit ion should prevent it s fulfillment , wit hout t he fault of t he heir, t he condit ion shall be deemed t o have been complied wit h. (798a ) Art . 884. Condit ions imposed by t he t est at or upon t he heirs shall be governed by t he rules est ablished for condit ional obligat ions in all mat t ers not provided for by t his Sect ion. (791 a ) Art . 885. The designat ion of t he day or t ime when t he effect s of t he inst it ut ion of an heir shall commence or cease shall be valid. In bot h cases, t he legal heir shall be considered as called t o t he succession unt il t he arrival of t he period or it s expirat ion. But in t he first case he shall not ent er int o possession of t he propert y unt il aft er having given sufficient securit y , wit h t he int ervent ion of t he inst it ut ed heir. (805) SECTION 5. - Legit ime Art . 886. Legit ime is t hat part of t he t est at or's propert y which he cannot dispose of because t he law has reserved it for cert ain heirs who are, t herefore, called compulsory heirs. (806) Art . 887 . The following are compulsory heirs: (1) Legit imat e children and descendant s, wit h respect t o t heir legit imat e parent s and ascendant s; (2) In default of t he foregoing, legit imat e parent s and ascendant s, wit h respect t o t heir legit imat e children and descendant s; (3) The widow or widower; (4) Acknowledged nat ural children, and nat ural children by legal fict ion; (5) Ot her illegit imat e children referred t o in Art icle 287 . Compulsory heirs ment ioned in Nos. 3, 4, and 5 are not excluded by t hose in Nos. 1 and 2; neit her do t hey exclude one anot her. In all cases of illegit imat e children, t heir filiat ion must be duly proved. The fat her or mot her of illegit imat e children of t he t hree classes ment ioned, shall inherit from t hem in t he manner and t o t he ext ent est ablished by t his Code. (807a ) Art . 888. The legit ime of legit imat e children and descendant s consist s of one-half of t he heredit ary est at e of t he fat her and of t he mot her.
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The lat t er may freely dispose of t he remaining half, subject t o t he right s of illegit imat e children and of t he surviving spouse as hereinaft er provided. (808a ) Art . 889. The legit ime of legit imat e parent s or ascendant s consist s of one-half of t he heredit ary est at es of t heir children and descendant s. The children or descendant s may freely dispose of t he ot her half, subject t o t he right s of illegit imat e children and of t he surviving spouse as hereinaft er provided. (809a ) Art . 890. The legit ime reserved for t he legit imat e parent s shall be divided bet ween t hem equally ; if one of t he parent s should have died, t he whole shall pass t o t he survivor. If t he t est at or leaves neit her fat her nor mot her, but is survived by ascendant s of equal degree of t he pat ernal and mat ernal lines, t he legit ime shall be divided equally bet ween bot h lines. If t he ascendant s should be of different degrees, it shall pert ain ent irely t o t he ones nearest in degree of eit her line. (81 0) Art . 891. The ascendant who inherit s from his descendant any propert y which t he lat t er may have acquired by grat uit ous t it le from anot her ascendant , or a brot her or sist er, is obliged t o reserve such propert y as he may have acquired by operat ion of law for t he benefit of relat ives who are wit hin t he t hird degree and who belong t o t he line from which said propert y came. (871 ) Art . 892. If only one legit imat e child or descendant of t he deceased survives, t he widow or widower shall be ent it led t o one-fourt h of t he heredit ary est at e. In case of a legal separat ion, t he surviving spouse may inherit if it was t he deceased who had given cause for t he same. If t here are t wo or more legit imat e children or descendant s, t he surviving spouse shall be ent it led t o a port ion equal t o t he legit ime of each of t he legit imat e children or descendant s. In bot h cases, t he legit ime of t he surviving spouse shall be t aken from t he port ion t hat can be freely disposed of by t he t est at or. (834a ) Art . 893. If t he t est at or leaves no legit imat e descendant s, but leaves legit imat e ascendant s, t he surviving spouse shall have a right t o one-fourt h of t he heredit ary est at e. This fourt h shall be t aken from t he free port ion of t he est at e. (836a ) Art . 894. If t he t est at or leaves illegit imat e children, t he surviving spouse shall be ent it led t o one-t hird of t he heredit ary est at e of t he deceased and t he illegit imat e children t o anot her t hird. The remaining t hird shall be at t he free disposal of t he t est at or. (n ) Art . 895. The legit ime of each of t he acknowledged nat ural children and each of t he nat ural children by legal fict ion shall consist of one-half of t he legit ime of each of t he legit imat e children or descendant s. The legit ime of an illegit imat e child who is neit her an acknowledged nat ural, nor a nat ural child by legal fict ion, shall be equal in every case t o four-fift hs of t he legit ime of an acknowledged nat ural child. The legit ime of t he illegit imat e children shall be t aken from t he port ion of t he est at e at t he free disposal of t he t est at or, provided t hat in no case shall t he t ot al legit ime of such illegit imat e children exceed t hat free port ion, and t hat t he legit ime of t he surviving spouse must first be fully sat isfied. (840a ) Art . 896. Illegit imat e children who may survive wit h legit imat e parent s or ascendant s of t he deceased shall be ent it led t o one-fourt h of t he heredit ary est at e t o be t aken from t he port ion at t he free disposal of t he t est at or. (841 a ) Art . 897 . When t he widow or widower survives wit h legit imat e children or descendant s, and acknowledged nat ural children, or nat ural children by legal fict ion, such surviving spouse shall be ent it led t o a port ion equal t o t he legit ime of each of t he legit imat e children which must be t aken from t hat part of t he est at e which t he t est at or can freely dispose of. (n ) Art . 898. If t he widow or widower survives wit h legit imat e children or descendant s, and wit h illegit imat e children ot her t han acknowledged nat ural, or nat ural children by legal fict ion, t he share of t he surviving spouse shall be t he same as t hat provided in t he preceding art icle. (n ) Art . 899. When t he widow or widower survives wit h legit imat e parent s or ascendant s and wit h illegit imat e children, such surviving spouse shall be ent it led t o one-eight h of t he heredit ary est at e of t he deceased which must be t aken from t he free port ion, and t he illegit imat e children shall be ent it led t o one-fourt h of t he est at e which shall be t aken also from t he disposable port ion. The t est at or may freely dispose of t he remaining one-eight h of t he est at e. (n ) Art . 900. If t he only survivor is t he widow or widower, she or he shall be ent it led t o one-half of t he heredit ary est at e of t he deceased spouse, and t he t est at or may freely dispose of t he ot her half. (837a ) If t he marriage bet ween t he surviving spouse and t he t est at or was solemnized in art iculo mort is, and t he t est at or died wit hin t hree mont hs from t he t ime of t he marriage, t he legit ime of t he surviving spouse as t he sole heir shall be onet hird of t he heredit ary est at e, except when t hey have been living as husband and wife for more t han five y ears. In t he
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lat t er case, t he legit ime of t he surviving spouse shall be t hat specified in t he preceding paragraph. (n ) Art . 901. When t he t est at or dies leaving illegit imat e children and no ot her compulsory heirs, such illegit imat e children shall have a right t o one-half of t he heredit ary est at e of t he deceased. The ot her half shall be at t he free disposal of t he t est at or. (842a ) Art . 902. The right s of illegit imat e children set fort h in t he preceding art icles are t ransmit t ed upon t heir deat h t o t heir descendant s, whet her legit imat e or illegit imat e. (843a ) Art . 903. The legit ime of t he parent s who have an illegit imat e child, when such child leaves neit her legit imat e descendant s, nor a surviving spouse, nor illegit imat e children, is one-half of t he heredit ary est at e of such illegit imat e child. If only legit imat e or illegit imat e children are left , t he parent s are not ent it led t o any legit ime what soever. If only t he widow or widower survives wit h parent s of t he illegit imat e child, t he legit ime of t he parent s is one-fourt h of t he heredit ary est at e of t he child, and t hat of t he surviving spouse also one-fourt h of t he est at e. (n ) Art . 904. The t est at or cannot deprive his compulsory heirs of t heir legit ime, except in cases expressly specified by law. Neit her can he impose upon t he same any burden, encumbrance, condit ion, or subst it ut ion of any kind what soever.
(81 3a )
Art . 905. Every renunciat ion or compromise as regards a fut ure legit ime bet ween t he person owing it and his compulsory heirs is void, and t he lat t er may claim t he same upon t he deat h of t he former; but t hey must bring t o collat ion what ever t hey may have received by virt ue of t he renunciat ion or compromise. (81 6) Art . 906. Any compulsory heir t o whom t he t est at or has left by any t it le less t han t he legit ime belonging t o him may demand t hat t he same be fully sat isfied. (81 5) Art . 907 . Test ament ary disposit ions t hat impair or diminish t he legit ime of t he compulsory heirs shall be reduced on pet it ion of t he same, insofar as t hey may be inofficious or excessive. (81 7) Art . 908. To det ermine t he legit ime, t he value of t he propert y left at t he deat h of t he t est at or shall be considered, deduct ing all debt s and charges, which shall not include t hose imposed in t he will. To t he net value of t he heredit ary est at e, shall be added t he value of all donat ions by t he t est at or t hat are subject t o collat ion, at t he t ime he made t hem. (81 8a ) Art . 909. Donat ions given t o children shall be charged t o t heir legit ime. Donat ions made t o st rangers shall be charged t o t hat part of t he est at e of which t he t est at or could have disposed by his last will. Insofar as t hey may be inofficious or may exceed t he disposable port ion, t hey shall be reduced according t o t he rules est ablished by t his Code. (81 9a ) Art . 910. Donat ions which an illegit imat e child may have received during t he lifet ime of his fat her or mot her, shall be charged t o his legit ime. Should t hey exceed t he port ion t hat can be freely disposed of, t hey shall be reduced in t he manner prescribed by t his Code. (847a ) Art . 911. Aft er t he legit ime has been det ermined in accordance wit h t he t hree preceding art icles, t he reduct ion shall be made as follows: (1) Donat ions shall be respect ed as long as t he legit ime can be covered, reducing or annulling, if necessary , t he devises or legacies made in t he will; (2) The reduct ion of t he devises or legacies shall be pro rat a, wit hout any dist inct ion what ever. If t he t est at or has direct ed t hat a cert ain devise or legacy be paid in preference t o ot hers, it shall not suffer any reduct ion unt il t he lat t er have been applied in full t o t he pay ment of t he legit ime. (3) If t he devise or legacy consist s of a usufruct or life annuit y , whose value may be considered great er t han t hat of t he disposable port ion, t he compulsory heirs may choose bet ween comply ing wit h t he t est ament ary provision and delivering t o t he devisee or legat ee t he part of t he inherit ance of which t he t est at or could freely dispose.
(820a )
Art . 912. If t he devise subject t o reduct ion should consist of real propert y , which cannot be convenient ly divided, it shall go t o t he devisee if t he reduct ion does not absorb one-half of it s value; and in a cont rary case, t o t he compulsory heirs; but t he former and t he lat t er shall reimburse each ot her in cash for what respect ively belongs t o t hem. The devisee who is ent it led t o a legit ime may ret ain t he ent ire propert y , provided it s value does not exceed t hat of t he disposable port ion and of t he share pert aining t o him as legit ime. (821 )
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Art . 913. If t he heirs or devisees do not choose t o avail t hemselves of t he right grant ed by t he preceding art icle, any heir or devisee who did not have such right may exercise it ; should t he lat t er not make use of it , t he propert y shall be sold at public auct ion at t he inst ance of any one of t he int erest ed part ies. (822) Art . 914. The t est at or may devise and bequeat h t he free port ion as he may deem fit . (n ) SECTION 6. - Disinherit ance Art . 915. A compulsory heir may , in consequence of disinherit ance, be deprived of his legit ime, for causes expressly st at ed by law. (848a ) Art . 916. Disinherit ance can be effect ed only t hrough a will wherein t he legal cause t herefor shall be specified. (849) Art . 917 . The burden of proving t he t rut h of t he cause for disinherit ance shall rest upon t he ot her heirs of t he t est at or, if t he disinherit ed heir should deny it . (850) Art . 918. Disinherit ance wit hout a specificat ion of t he cause, or for a cause t he t rut h of which, if cont radict ed, is not proved, or which is not one of t hose set fort h in t his Code, shall annul t he inst it ut ion of heirs insofar as it may prejudice t he person disinherit ed; but t he devises and legacies and ot her t est ament ary disposit ions shall be valid t o such ext ent as will not impair t he legit ime. (851 a ) Art . 919. The following shall be sufficient causes for t he disinherit ance of children and descendant s, legit imat e as well as illegit imat e: (1) When a child or descendant has been found guilt y of an at t empt against t he life of t he t est at or, his or her spouse, descendant s, or ascendant s; (2) When a child or descendant has accused t he t est at or of a crime for which t he law prescribes imprisonment for six y ears or more, if t he accusat ion has been found groundless; (3) When a child or descendant has been convict ed of adult ery or concubinage wit h t he spouse of t he t est at or; (4) When a child or descendant by fraud, violence, int imidat ion, or undue influence causes t he t est at or t o make a will or t o change one already made; (5) A refusal wit hout just ifiable cause t o support t he parent or ascendant who disinherit s such child or descendant ; (6) Malt reat ment of t he t est at or by word or deed, by t he child or descendant ; (7 ) When a child or descendant leads a dishonorable or disgraceful life; (8) Convict ion of a crime which carries wit h it t he penalt y of civil int erdict ion. (756, 853, 674a ) Art . 920. The following shall be sufficient causes for t he disinherit ance of parent s or ascendant s, whet her legit imat e or illegit imat e: (1) When t he parent s have abandoned t heir children or induced t heir daught ers t o live a corrupt or immoral life, or at t empt ed against t heir virt ue; (2) When t he parent or ascendant has been convict ed of an at t empt against t he life of t he t est at or, his or her spouse, descendant s, or ascendant s; (3) When t he parent or ascendant has accused t he t est at or of a crime for which t he law prescribes imprisonment for six y ears or more, if t he accusat ion has been found t o be false; (4) When t he parent or ascendant has been convict ed of adult ery or concubinage wit h t he spouse of t he t est at or; (5) When t he parent or ascendant by fraud, violence, int imidat ion, or undue influence causes t he t est at or t o make a will or t o change one already made; (6) The loss of parent al aut horit y for causes specified in t his Code; (7 ) The refusal t o support t he children or descendant s wit hout just ifiable cause; (8) An at t empt by one of t he parent s against t he life of t he ot her, unless t here has been a reconciliat ion bet ween t hem. (756, 854, 674a ) Art . 921. The following shall be sufficient causes for disinherit ing a spouse: (1) When t he spouse has been convict ed of an at t empt against t he life of t he t est at or, his or her descendant s, or ascendant s;
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(2) When t he spouse has accused t he t est at or of a crime for which t he law prescribes imprisonment of six y ears or more, and t he accusat ion has been found t o be false; (3) When t he spouse by fraud, violence, int imidat ion, or undue influence cause t he t est at or t o make a will or t o change one already made; (4) When t he spouse has given cause for legal separat ion; (5) When t he spouse has given grounds for t he loss of parent al aut horit y ; (6) Unjust ifiable refusal t o support t he children or t he ot her spouse. (756, 855, 674a ) Art . 922. A subsequent reconciliat ion bet ween t he offender and t he offended person deprives t he lat t er of t he right t o disinherit , and renders ineffect ual any disinherit ance t hat may have been made. (856) Art . 923. The children and descendant s of t he person disinherit ed shall t ake his or her place and shall preserve t he right s of compulsory heirs wit h respect t o t he legit ime; but t he disinherit ed parent shall not have t he usufruct or administ rat ion of t he propert y which const it ut es t he legit ime. (857) SECTION 7 . - Legacies and Devises Art . 924. All t hings and right s which are wit hin t he commerce of man be bequeat hed or devised. (865a ) Art . 925. A t est at or may charge wit h legacies and devises not only his compulsory heirs but also t he legat ees and devisees. The lat t er shall be liable for t he charge only t o t he ext ent of t he value of t he legacy or t he devise received by t hem. The compulsory heirs shall not be liable for t he charge bey ond t he amount of t he free port ion given t hem. (858a ) Art . 926. When t he t est at or charges one of t he heirs wit h a legacy or devise, he alone shall be bound. Should he not charge any one in part icular, all shall be liable in t he same proport ion in which t hey may inherit . (859) Art . 927 . If t wo or more heirs t ake possession of t he est at e, t hey shall be solidarily liable for t he loss or dest ruct ion of a t hing devised or bequeat hed, even t hough only one of t hem should have been negligent . (n ) Art . 928. The heir who is bound t o deliver t he legacy or devise shall be liable in case of evict ion, if t he t hing is indet erminat e and is indicat ed only by it s kind. (860) Art . 929. If t he t est at or, heir, or legat ee owns only a part of, or an int erest in t he t hing bequeat hed, t he legacy or devise shall be underst ood limit ed t o such part or int erest , unless t he t est at or expressly declares t hat he gives t he t hing in it s ent iret y . (864a ) Art . 930. The legacy or devise of a t hing belonging t o anot her person is void, if t he t est at or erroneously believed t hat t he t hing pert ained t o him. But if t he t hing bequeat hed, t hough not belonging t o t he t est at or when he made t he will, aft erwards becomes his, by what ever t it le, t he disposit ion shall t ake effect . (862a ) Art . 931. If t he t est at or orders t hat a t hing belonging t o anot her be acquired in order t hat it be given t o a legat ee or devisee, t he heir upon whom t he obligat ion is imposed or t he est at e must acquire it and give t he same t o t he legat ee or devisee; but if t he owner of t he t hing refuses t o alienat e t he same, or demands an excessive price t herefor, t he heir or t he est at e shall only be obliged t o give t he just value of t he t hing. (861 a ) Art . 932. The legacy or devise of a t hing which at t he t ime of t he execut ion of t he will already belonged t o t he legat ee or devisee shall be ineffect ive, even t hough anot her person may have some int erest t herein. If t he t est at or expressly orders t hat t he t hing be freed from such int erest or encumbrance, t he legacy or devise shall be valid t o t hat ext ent . (866a ) Art . 933. If t he t hing bequeat hed belonged t o t he legat ee or devisee at t he t ime of t he execut ion of t he will, t he legacy or devise shall be wit hout effect , even t hough it may have subsequent ly alienat ed by him. If t he legat ee or devisee acquires it grat uit ously aft er such t ime, he can claim not hing by virt ue of t he legacy or devise; but if it has been acquired by onerous t it le he can demand reimbursement from t he heir or t he est at e. (878a ) Art . 934. If t he t est at or should bequeat h or devise somet hing pledged or mort gaged t o secure a recoverable debt before t he execut ion of t he will, t he est at e is obliged t o pay t he debt , unless t he cont rary int ent ion appears. The same rule applies when t he t hing is pledged or mort gaged aft er t he execut ion of t he will. Any ot her charge, perpet ual or t emporary , wit h which t he t hing bequeat hed is burdened, passes wit h it t o t he legat ee or devisee. (867a ) Art . 935. The legacy of a credit against a t hird person or of t he remission or release of a debt of t he legat ee shall be
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effect ive only as regards t hat part of t he credit or debt exist ing at t he t ime of t he deat h of t he t est at or. In t he first case, t he est at e shall comply wit h t he legacy by assigning t o t he legat ee all right s of act ion it may have against t he debt or. In t he second case, by giving t he legat ee an acquit t ance, should he request one. In bot h cases, t he legacy shall comprise all int erest s on t he credit or debt which may be due t he t est at or at t he t ime of his deat h. (870a ) Art . 936. The legacy referred t o in t he preceding art icle shall lapse if t he t est at or, aft er having made it , should bring an act ion against t he debt or for t he pay ment of his debt , even if such pay ment should not have been effect ed at t he t ime of his deat h. The legacy t o t he debt or of t he t hing pledged by him is underst ood t o discharge only t he right of pledge. (871 ) Art . 937 . A generic legacy of release or remission of debt s comprises t hose exist ing at t he t ime of t he execut ion of t he will, but not subsequent ones. (872) Art . 938. A legacy or devise made t o a credit or shall not be applied t o his credit , unless t he t est at or so expressly declares. In t he lat t er case, t he credit or shall have t he right t o collect t he excess, if any , of t he credit or of t he legacy or devise.
(837a )
Art . 939. If t he t est at or orders t he pay ment of what he believes he owes but does not in fact owe, t he disposit ion shall be considered as not writ t en. If as regards a specified debt more t han t he amount t hereof is ordered paid, t he excess is not due, unless a cont rary int ent ion appears. The foregoing provisions are wit hout prejudice t o t he fulfillment of nat ural obligat ions. (n ) Art . 940. In alt ernat ive legacies or devises, t he choice is presumed t o be left t o t he heir upon whom t he obligat ion t o give t he legacy or devise may be imposed, or t he execut or or administ rat or of t he est at e if no part icular heir is so obliged. If t he heir, legat ee or devisee, who may have been given t he choice, dies before making it , t his right shall pass t o t he respect ive heirs. Once made, t he choice is irrevocable. In t he alt ernat ive legacies or devises, except as herein provided, t he provisions of t his Code regulat ing obligat ions of t he same kind shall be observed, save such modificat ions as may appear from t he int ent ion expressed by t he t est at or.
(874a )
Art . 941. A legacy of generic personal propert y shall be valid even if t here be no t hings of t he same kind in t he est at e. A devise of indet erminat e real propert y shall be valid only if t here be immovable propert y of it s kind in t he est at e. The right of choice shall belong t o t he execut or or administ rat or who shall comply wit h t he legacy by t he delivery of a t hing which is neit her of inferior nor of superior qualit y . (875a ) Art . 942. Whenever t he t est at or expressly leaves t he right of choice t o t he heir, or t o t he legat ee or devisee, t he former may give or t he lat t er may choose whichever he may prefer. (876a ) Art . 943. If t he heir, legat ee or devisee cannot make t he choice, in case it has been grant ed him, his right shall pass t o his heirs; but a choice once made shall be irrevocable. (877a ) Art . 944. A legacy for educat ion last s unt il t he legat ee is of age, or bey ond t he age of majorit y in order t hat t he legat ee may finish some professional, vocat ional or general course, provided he pursues his course diligent ly . A legacy for support last s during t he lifet ime of t he legat ee, if t he t est at or has not ot herwise provided. If t he t est at or has not fixed t he amount of such legacies, it shall be fixed in accordance wit h t he social st anding and t he circumst ances of t he legat ee and t he value of t he est at e. If t he t est at or or during his lifet ime used t o give t he legat ee a cert ain sum of money or ot her t hings by way of support , t he same amount shall be deemed bequeat hed, unless it be markedly disproport ionat e t o t he value of t he est at e. (879a ) Art . 945. If a periodical pension, or a cert ain annual, mont hly , or weekly amount is bequeat hed, t he legat ee may pet it ion t he court for t he first inst allment upon t he deat h of t he t est at or, and for t he following ones which shall be due at t he beginning of each period; such pay ment shall not be ret urned, even t hough t he legat ee should die before t he expirat ion of t he period which has commenced. (880a ) Art . 946. If t he t hing bequeat hed should be subject t o a usufruct , t he legat ee or devisee shall respect such right unt il it is legally ext inguished. (868a )
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Art . 947 . The legat ee or devisee acquires a right t o t he pure and simple legacies or devises from t he deat h of t he t est at or, and t ransmit s it t o his heirs. (881 a ) Art . 948. If t he legacy or device is of a specific and det erminat e t hing pert aining t o t he t est at or, t he legat ee or devisee acquires t he ownership t hereof upon t he deat h of t he t est at or, as well as any growing fruit s, or unborn offspring of animals, or uncollect ed income; but not t he income which was due and unpaid before t he lat t er's deat h. From t he moment of t he t est at or's deat h, t he t hing bequeat hed shall be at t he risk of t he legat ee or devisee, who shall, t herefore, bear it s loss or det eriorat ion, and shall be benefit ed by it s increase or improvement , wit hout prejudice t o t he responsibilit y of t he execut or or administ rat or. (882a ) Art . 949. If t he bequest should not be of a specific and det erminat e t hing, but is generic or of quant it y , it s fruit s and int erest s from t he t ime of t he deat h of t he t est at or shall pert ain t o t he legat ee or devisee if t he t est at or has expressly so ordered. (884a ) Art . 950. If t he est at e should not be sufficient t o cover all t he legacies or devises, t heir pay ment shall be made in t he following order: (1) Remunerat ory legacies or devises; (2) Legacies or devises declared by t he t est at or t o be preferent ial; (3) Legacies for support ; (4) Legacies for educat ion; (5) Legacies or devises of a specific, det erminat e t hing which forms a part of t he est at e; (6) All ot hers pro rat a. (887a ) Art . 951. The t hing bequeat hed shall be delivered wit h all it s accessories and accessories and in t he condit ion in which it may be upon t he deat h of t he t est at or. (883a ) Art . 952. The heir, charged wit h a legacy or devise, or t he execut or or administ rat or of t he est at e, must deliver t he very t hing bequeat hed if he is able t o do so and cannot discharge t his obligat ion by pay ing it s value. Legacies of money must be paid in cash, even t hough t he heir or t he est at e may not have any . The expenses necessary for t he delivery of t he t hing bequeat hed shall be for t he account of t he heir or t he est at e, but wit hout prejudice t o t he legit ime. (886a ) Art . 953. The legat ee or devisee cannot t ake possession of t he t hing bequeat hed upon his own aut horit y , but shall request it s delivery and possession of t he heir charged wit h t he legacy or devise, or of t he execut or or administ rat or of t he est at e should he be aut horized by t he court t o deliver it . (885a ) Art . 954. The legat ee or devisee cannot accept a part of t he legacy or devise and repudiat e t he ot her, if t he lat t er be onerous. Should he die before having accept ed t he legacy or devise, leaving several heirs, some of t he lat t er may accept and t he ot hers may repudiat e t he share respect ively belonging t o t hem in t he legacy or devise. (889a) Art . 955. The legat ee or devisee of t wo legacies or devises, one of which is onerous, cannot renounce t he onerous one and accept t he ot her. If bot h are onerous or grat uit ous, he shall be free t o accept or renounce bot h, or t o renounce eit her. But if t he t est at or int ended t hat t he t wo legacies or devises should be inseparable from each ot her, t he legat ee or devisee must eit her accept or renounce bot h. Any compulsory heir who is at t he same t ime a legat ee or devisee may waive t he inherit ance and accept t he legacy or devise, or renounce t he lat t er and accept t he former, or waive or accept bot h. (890a ) Art . 956. If t he legat ee or devisee cannot or is unwilling t o accept t he legacy or devise, or if t he legacy or devise for any reason should become ineffect ive, it shall be merged int o t he mass of t he est at e, except in cases of subst it ut ion and of t he right of accret ion. (888a ) Art . 957 . The legacy or devise shall be wit hout effect : (1) If t he t est at or t ransforms t he t hing bequeat hed in such a manner t hat it does not ret ain eit her t he form or t he denominat ion it had; (2) If t he t est at or by any t it le or for any cause alienat es t he t hing bequeat hed or any part t hereof, it being underst ood t hat in t he lat t er case t he legacy or devise shall be wit hout effect only wit h respect t o t he part t hus alienat ed. If aft er t he alienat ion t he t hing should again belong t o t he t est at or, even if it be by reason of nullit y of t he cont ract , t he legacy or devise shall not t hereaft er be valid, unless t he reacquisit ion shall have been effect ed by virt ue of t he exercise of t he right of repurchase;
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(3) If t he t hing bequeat hed is t ot ally lost during t he lifet ime of t he t est at or, or aft er his deat h wit hout t he heir's fault . Nevert heless, t he person obliged t o pay t he legacy or devise shall be liable for evict ion if t he t hing bequeat hed should not have been det erminat e as t o it s kind, in accordance wit h t he provisions of Art icle 928.
(869a )
Art . 958. A mist ake as t o t he name of t he t hing bequeat hed or devised, is of no consequence, if it is possible t o ident ify t he t hing which t he t est at or int ended t o bequeat h or devise. (n ) Art . 959. A disposit ion made in general t erms in favor of t he t est at or's relat ives shall be underst ood t o be in favor of t hose nearest in degree. (751 ) CHAPTER 3 LEGAL OR INTESTATE SUCCESSION SECTION 1. - General Provisions Art . 960. Legal or int est at e succession t akes place: (1) If a person dies wit hout a will, or wit h a void will, or one which has subsequent ly lost it s validit y ; (2) When t he will does not inst it ut e an heir t o, or dispose of all t he propert y belonging t o t he t est at or. In such case, legal succession shall t ake place only wit h respect t o t he propert y of which t he t est at or has not disposed; (3) If t he suspensive condit ion at t ached t o t he inst it ut ion of heir does not happen or is not fulfilled, or if t he heir dies before t he t est at or, or repudiat es t he inherit ance, t here being no subst it ut ion, and no right of accret ion t akes place; (4) When t he heir inst it ut ed is incapable of succeeding, except in cases provided in t his Code. (91 2a ) Art . 961. In default of t est ament ary heirs, t he law vest s t he inherit ance, in accordance wit h t he rules hereinaft er set fort h, in t he legit imat e and illegit imat e relat ives of t he deceased, in t he surviving spouse, and in t he St at e. (91 3a ) Art . 962. In every inherit ance, t he relat ive nearest in degree excludes t he more dist ant ones, saving t he right of represent at ion when it properly t akes place. Relat ives in t he same degree shall inherit in equal shares, subject t o t he provisions of art icle 1006 wit h respect t o relat ives of t he full and half blood, and of Art icle 987 , paragraph 2, concerning division bet ween t he pat ernal and mat ernal lines. (91 2a ) SUBSECTION 1. - Relat ionship Art . 963. Proximit y of relat ionship is det ermined by t he number of generat ions. Each generat ion forms a degree. (91 5) Art . 964. A series of degrees forms a line, which may be eit her direct or collat eral. A direct line is t hat const it ut ed by t he series of degrees among ascendant s and descendant s. A collat eral line is t hat const it ut ed by t he series of degrees among persons who are not ascendant s and descendant s, but who come from a common ancest or. (91 6a ) Art . 965. The direct line is eit her descending or ascending. The former unit es t he head of t he family wit h t hose who descend from him. The lat t er binds a person wit h t hose from whom he descends. (91 7) Art . 966. In t he line, as many degrees are count ed as t here are generat ions or persons, excluding t he progenit or. In t he direct line, ascent is made t o t he common ancest or. Thus, t he child is one degree removed from t he parent , t wo from t he grandfat her, and t hree from t he great -grandparent . In t he collat eral line, ascent is made t o t he common ancest or and t hen descent is made t o t he person wit h whom t he comput at ion is t o be made. Thus, a person is t wo degrees removed from his brot her, t hree from his uncle, who is t he brot her of his fat her, four from his first cousin, and so fort h. (91 8a ) Art . 967 . Full blood relat ionship is t hat exist ing bet ween persons who have t he same fat her and t he same mot her. Half blood relat ionship is t hat exist ing bet ween persons who have t he same fat her, but not t he same mot her, or t he same mot her, but not t he same fat her. (920a ) Art . 968. If t here are several relat ives of t he same degree, and one or some of t hem are unwilling or incapacit at ed t o succeed, his port ion shall accrue t o t he ot hers of t he same degree, save t he right of represent at ion when it should t ake
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place. (922) Art . 969. If t he inherit ance should be repudiat ed by t he nearest relat ive, should t here be one only , or by all t he nearest relat ives called by law t o succeed, should t here be several, t hose of t he following degree shall inherit in t heir own right and cannot represent t he person or persons repudiat ing t he inherit ance. (923) SUBSECTION 2. - Right of Represent at ion Art . 97 0. Represent at ion is a right creat ed by fict ion of law, by virt ue of which t he represent at ive is raised t o t he place and t he degree of t he person represent ed, and acquires t he right s which t he lat t er would have if he were living or if he could have inherit ed. (942a ) Art . 97 1. The represent at ive is called t o t he succession by t he law and not by t he person represent ed. The represent at ive does not succeed t he person represent ed but t he one whom t he person represent ed would have succeeded. (n ) Art . 97 2. The right of represent at ion t akes place in t he direct descending line, but never in t he ascending. In t he collat eral line, it t akes place only in favor of t he children of brot hers or sist ers, whet her t hey be of t he full or half blood. (925) Art . 97 3. In order t hat represent at ion may t ake place, it is necessary t hat t he represent at ive himself be capable of succeeding t he decedent . (n ) Art . 97 4. Whenever t here is succession by represent at ion, t he division of t he est at e shall be made per st irpes, in such manner t hat t he represent at ive or represent at ives shall not inherit more t han what t he person t hey represent would inherit , if he were living or could inherit . (926a ) Art . 97 5. When children of one or more brot hers or sist ers of t he deceased survive, t hey shall inherit from t he lat t er by represent at ion, if t hey survive wit h t heir uncles or aunt s. But if t hey alone survive, t hey shall inherit in equal port ions. (927) Art . 97 6. A person may represent him whose inherit ance he has renounced. (928a ) Art . 97 7 . Heirs who repudiat e t heir share may not be represent ed. (929a ) SECTION 2. - Order of Int est at e Succession SUBSECTION 1. - Descending Direct Line Art . 97 8. Succession pert ains, in t he first place, t o t he descending direct line. (930) Art . 97 9. Legit imat e children and t heir descendant s succeed t he parent s and ot her ascendant s, wit hout dist inct ion as t o sex or age, and even if t hey should come from different marriages. An adopt ed child succeeds t o t he propert y of t he adopt ing parent s in t he same manner as a legit imat e child. (931 a ) Art . 980. The children of t he deceased shall alway s inherit from him in t heir own right , dividing t he inherit ance in equal shares. (932) Art . 981. Should children of t he deceased and descendant s of ot her children who are dead, survive, t he former shall inherit in t heir own right , and t he lat t er by right of represent at ion. (934a ) Art . 982. The grandchildren and ot her descendant s shall inherit by right of represent at ion, and if any one of t hem should have died, leaving several heirs, t he port ion pert aining t o him shall be divided among t he lat t er in equal port ions. (933) Art . 983. If illegit imat e children survive wit h legit imat e children, t he shares of t he former shall be in t he proport ions prescribed by Art icle 895. (n ) Art . 984. In case of t he deat h of an adopt ed child, leaving no children or descendant s, his parent s and relat ives by consanguinit y and not by adopt ion, shall be his legal heirs. (n ) SUBSECTION 2. - Ascending Direct Line Art . 985. In default of legit imat e children and descendant s of t he deceased, his parent s and ascendant s shall inherit from him, t o t he exclusion of collat eral relat ives. (935a ) Art . 986. The fat her and mot her, if living, shall inherit in equal shares.
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Should one only of t hem survive, he or she shall succeed t o t he ent ire est at e of t he child. (936) Art . 987 . In default of t he fat her and mot her, t he ascendant s nearest in degree shall inherit . Should t here be more t han one of equal degree belonging t o t he same line t hey shall divide t he inherit ance per capit a; should t hey be of different lines but of equal degree, one-half shall go t o t he pat ernal and t he ot her half t o t he mat ernal ascendant s. In each line t he division shall be made per capit a. (937) SUBSECTION 3. - Illegit imat e Children Art . 988. In t he absence of legit imat e descendant s or ascendant s, t he illegit imat e children shall succeed t o t he ent ire est at e of t he deceased. (939a ) Art . 989. If, t oget her wit h illegit imat e children, t here should survive descendant s of anot her illegit imat e child who is dead, t he former shall succeed in t heir own right and t he lat t er by right of represent at ion. (940a ) Art . 990. The heredit ary right s grant ed by t he t wo preceding art icles t o illegit imat e children shall be t ransmit t ed upon t heir deat h t o t heir descendant s, who shall inherit by right of represent at ion from t heir deceased grandparent .
(941 a )
Art . 991. If legit imat e ascendant s are left , t he illegit imat e children shall divide t he inherit ance wit h t hem, t aking one-half of t he est at e, what ever be t he number of t he ascendant s or of t he illegit imat e children. (942-841 a ) Art . 992. An illegit imat e child has no right t o inherit ab int est at o from t he legit imat e children and relat ives of his fat her or mot her; nor shall such children or relat ives inherit in t he same manner from t he illegit imat e child. (943a ) Art . 993. If an illegit imat e child should die wit hout issue, eit her legit imat e or illegit imat e, his fat her or mot her shall succeed t o his ent ire est at e; and if t he child's filiat ion is duly proved as t o bot h parent s, who are bot h living, t hey shall inherit from him share and share alike. (944) Art . 994. In default of t he fat her or mot her, an illegit imat e child shall be succeeded by his or her surviving spouse who shall be ent it led t o t he ent ire est at e. If t he widow or widower should survive wit h brot hers and sist ers, nephews and nieces, she or he shall inherit one-half of t he est at e, and t he lat t er t he ot her half. (945a ) SUBSECTION 4. - Surviving Spouse Art . 995. In t he absence of legit imat e descendant s and ascendant s, and illegit imat e children and t heir descendant s, whet her legit imat e or illegit imat e, t he surviving spouse shall inherit t he ent ire est at e, wit hout prejudice t o t he right s of brot hers and sist ers, nephews and nieces, should t here be any , under art icle 1001. (946a ) Art . 996. If a widow or widower and legit imat e children or descendant s are left , t he surviving spouse has in t he succession t he same share as t hat of each of t he children. (834a ) Art . 997 . When t he widow or widower survives wit h legit imat e parent s or ascendant s, t he surviving spouse shall be ent it led t o one-half of t he est at e, and t he legit imat e parent s or ascendant s t o t he ot her half. (836a ) Art . 998. If a widow or widower survives wit h illegit imat e children, such widow or widower shall be ent it led t o one-half of t he inherit ance, and t he illegit imat e children or t heir descendant s, whet her legit imat e or illegit imat e, t o t he ot her half. (n ) Art . 999. When t he widow or widower survives wit h legit imat e children or t heir descendant s and illegit imat e children or t heir descendant s, whet her legit imat e or illegit imat e, such widow or widower shall be ent it led t o t he same share as t hat of a legit imat e child. (n ) Art . 1000. If legit imat e ascendant s, t he surviving spouse, and illegit imat e children are left , t he ascendant s shall be ent it led t o one-half of t he inherit ance, and t he ot her half shall be divided bet ween t he surviving spouse and t he illegit imat e children so t hat such widow or widower shall have one-fourt h of t he est at e, and t he illegit imat e children t he ot her fourt h. (841 a ) Art . 1001. Should brot hers and sist ers or t heir children survive wit h t he widow or widower, t he lat t er shall be ent it led t o one-half of t he inherit ance and t he brot hers and sist ers or t heir children t o t he ot her half. (953, 837a ) Art . 1002. In case of a legal separat ion, if t he surviving spouse gave cause for t he separat ion, he or she shall not have any of t he right s grant ed in t he preceding art icles. (n ) SUBSECTION 5. - Collat eral Relat ives Art . 1003. If t here are no descendant s, ascendant s, illegit imat e children, or a surviving spouse, t he collat eral
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relat ives shall succeed t o t he ent ire est at e of t he deceased in accordance wit h t he following art icles. (946a ) Art . 1004. Should t he only survivors be brot hers and sist ers of t he full blood, t hey shall inherit in equal shares. (947) Art . 1005. Should brot hers and sist ers survive t oget her wit h nephews and nieces, who are t he children of t he descendant 's brot hers and sist ers of t he full blood, t he former shall inherit per capit a, and t he lat t er per st irpes. (948) Art . 1006. Should brot her and sist ers of t he full blood survive t oget her wit h brot hers and sist ers of t he half blood, t he former shall be ent it led t o a share double t hat of t he lat t er. (949) Art . 1007 . In case brot hers and sist ers of t he half blood, some on t he fat her's and some on t he mot her's side, are t he only survivors, all shall inherit in equal shares wit hout dist inct ion as t o t he origin of t he propert y . (950) Art . 1008. Children of brot hers and sist ers of t he half blood shall succeed per capit a or per st irpes, in accordance wit h t he rules laid down for t he brot hers and sist ers of t he full blood. (91 5) Art . 1009. Should t here be neit her brot hers nor sist ers nor children of brot hers or sist ers, t he ot her collat eral relat ives shall succeed t o t he est at e. The lat t er shall succeed wit hout dist inct ion of lines or preference among t hem by reason of relat ionship by t he whole blood. (954a ) Art . 1010. The right t o inherit ab int est at o shall not ext end bey ond t he fift h degree of relat ionship in t he collat eral line. (955a ) SUBSECTION 6. - The St at e Art . 1011. In default of persons ent it led t o succeed in accordance wit h t he provisions of t he preceding Sect ions, t he St at e shall inherit t he whole est at e. (956a ) Art . 1012. In order t hat t he St at e may t ake possession of t he propert y ment ioned in t he preceding art icle, t he pert inent provisions of t he Rules of Court must be observed. (958a ) Art . 1013. Aft er t he pay ment of debt s and charges, t he personal propert y shall be assigned t o t he municipalit y or cit y where t he deceased last resided in t he Philippines, and t he real est at e t o t he municipalit ies or cit ies, respect ively , in which t he same is sit uat ed. If t he deceased never resided in t he Philippines, t he whole est at e shall be assigned t o t he respect ive municipalit ies or cit ies where t he same is locat ed. Such est at e shall be for t he benefit of public schools, and public charit able inst it ut ions and cent ers, in such municipalit ies or cit ies. The court shall dist ribut e t he est at e as t he respect ive needs of each beneficiary may warrant . The court , at t he inst ance of an int erest ed part y , or on it s own mot ion, may order t he est ablishment of a permanent t rust , so t hat only t he income from t he propert y shall be used. (956a ) Art . 1014. If a person legally ent it led t o t he est at e of t he deceased appears and files a claim t heret o wit h t he court wit hin five y ears from t he dat e t he propert y was delivered t o t he St at e, such person shall be ent it led t o t he possession of t he same, or if sold t he municipalit y or cit y shall be account able t o him for such part of t he proceeds as may not have been lawfully spent . (n ) CHAPTER 4 PROVISIONS COMMON TO TESTATE AND INTESTATE SUCCESSIONS SECTION 1. - Right of Accret ion Art . 1015. Accret ion is a right by virt ue of which, when t wo or more persons are called t o t he same inherit ance, devise or legacy , t he part assigned t o t he one who renounces or cannot receive his share, or who died before t he t est at or, is added or incorporat ed t o t hat of his co-heirs, co-devisees, or co-legat ees. (n ) Art . 1016. In order t hat t he right of accret ion may t ake place in a t est ament ary succession, it shall be necessary : (1) That t wo or more persons be called t o t he same inherit ance, or t o t he same port ion t hereof, pro indiviso ; and (2) That one of t he persons t hus called die before t he t est at or, or renounce t he inherit ance, or be incapacit at ed t o receive it . (928a ) Art . 1017 . The words "one-half for each" or "in equal shares" or any ot hers which, t hough designat ing an aliquot part , do not ident ify it by such descript ion as shall make each heir t he exclusive owner of det erminat e propert y , shall not exclude t he right of accret ion.
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In case of money or fungible goods, if t he share of each heir is not earmarked, t here shall be a right of accret ion. (983a ) Art . 1018. In legal succession t he share of t he person who repudiat es t he inherit ance shall alway s accrue t o his coheirs. (981 ) Art . 1019. The heirs t o whom t he port ion goes by t he right of accret ion t ake it in t he same proport ion t hat t hey inherit .
(n )
Art . 1020. The heirs t o whom t he inherit ance accrues shall succeed t o all t he right s and obligat ions which t he heir who renounced or could not receive it would have had. (984) Art . 1021. Among t he compulsory heirs t he right of accret ion shall t ake place only when t he free port ion is left t o t wo or more of t hem, or t o any one of t hem and t o a st ranger. Should t he part repudiat ed be t he legit ime, t he ot her co-heirs shall succeed t o it in t heir own right , and not by t he right of accret ion. (985) Art . 1022. In t est ament ary succession, when t he right of accret ion does not t ake place, t he vacant port ion of t he inst it ut ed heirs, if no subst it ut e has been designat ed, shall pass t o t he legal heirs of t he t est at or, who shall receive it wit h t he same charges and obligat ions. (986) Art . 1023. Accret ion shall also t ake place among devisees, legat ees and usufruct uaries under t he same condit ions est ablished for heirs. (987a ) SECTION 2. - Capacit y t o Succeed by Will of by Int est acy Art . 1024. Persons not incapacit at ed by law may succeed by will or ab intestato . The provisions relat ing t o incapacit y by will are equally applicable t o int est at e succession. (744, 91 4) Art . 1025. In order t o be capacit at ed t o inherit , t he heir, devisee or legat ee must be living at t he moment t he succession opens, except in case of represent at ion, when it is proper. A child already conceived at t he t ime of t he deat h of t he decedent is capable of succeeding provided it be born lat er under t he condit ions prescribed in art icle 41. (n ) Art . 1026. A t est ament ary disposit ion may be made t o t he St at e, provinces, municipal corporat ions, privat e corporat ions, organizat ions, or associat ions for religious, scient ific, cult ural, educat ional, or charit able purposes. All ot her corporat ions or ent it ies may succeed under a will, unless t here is a provision t o t he cont rary in t heir chart er or t he laws of t heir creat ion, and alway s subject t o t he same. (746a ) Art . 1027 . The following are incapable of succeeding: (1) The priest who heard t he confession of t he t est at or during his last illness, or t he minist er of t he gospel who ext ended spirit ual aid t o him during t he same period; (2) The relat ives of such priest or minist er of t he gospel wit hin t he fourt h degree, t he church, order, chapt er, communit y , organizat ion, or inst it ut ion t o which such priest or minist er may belong; (3) A guardian wit h respect t o t est ament ary disposit ions given by a ward in his favor before t he final account s of t he guardianship have been approved, even if t he t est at or should die aft er t he approval t hereof; nevert heless, any provision made by t he ward in favor of t he guardian when t he lat t er is his ascendant , descendant , brot her, sist er, or spouse, shall be valid; (4) Any at t est ing wit ness t o t he execut ion of a will, t he spouse, parent s, or children, or any one claiming under such wit ness, spouse, parent s, or children; (5) Any phy sician, surgeon, nurse, healt h officer or druggist who t ook care of t he t est at or during his last illness; (6) Individuals, associat ions and corporat ions not permit t ed by law t o inherit . (745, 752, 753, 754a ) Art . 1028. The prohibit ions ment ioned in art icle 7 39, concerning donat ions int er vivos shall apply t o t est ament ary provisions. (n ) Art . 1029. Should t he t est at or dispose of t he whole or part of his propert y for pray ers and pious works for t he benefit of his soul, in general t erms and wit hout specify ing it s applicat ion, t he execut or, wit h t he court 's approval shall deliver one-half t hereof or it s proceeds t o t he church or denominat ion t o which t he t est at or may belong, t o be used for such pray ers and pious works, and t he ot her half t o t he St at e, for t he purposes ment ioned in Art icle 1013. (747a ) Art . 1030. Test ament ary provisions in favor of t he poor in general, wit hout designat ion of part icular persons or of any communit y , shall be deemed limit ed t o t he poor living in t he domicile of t he t est at or at t he t ime of his deat h, unless it should clearly appear t hat his int ent ion was ot herwise.
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The designat ion of t he persons who are t o be considered as poor and t he dist ribut ion of t he propert y shall be made by t he person appoint ed by t he t est at or for t he purpose; in default of such person, by t he execut or, and should t here be no execut or, by t he just ice of t he peace, t he may or, and t he municipal t reasurer, who shall decide by a majorit y of vot es all quest ions t hat may arise. In all t hese cases, t he approval of t he Court of First Inst ance shall be necessary . The preceding paragraph shall apply when t he t est at or has disposed of his propert y in favor of t he poor of a definit e localit y . (749a ) Art . 1031. A t est ament ary provision in favor of a disqualified person, even t hough made under t he guise of an onerous cont ract , or made t hrough an int ermediary , shall be void. (755) Art . 1032. The following are incapable of succeeding by reason of unwort hiness: (1) Parent s who have abandoned t heir children or induced t heir daught ers t o lead a corrupt or immoral life, or at t empt ed against t heir virt ue; (2) Any person who has been convict ed of an at t empt against t he life of t he t est at or, his or her spouse, descendant s, or ascendant s; (3) Any person who has accused t he t est at or of a crime for which t he law prescribes imprisonment for six y ears or more, if t he accusat ion has been found groundless; (4) Any heir of full age who, having knowledge of t he violent deat h of t he t est at or, should fail t o report it t o an officer of t he law wit hin a mont h, unless t he aut horit ies have already t aken act ion; t his prohibit ion shall not apply t o cases wherein, according t o law, t here is no obligat ion t o make an accusat ion; (5) Any person convict ed of adult ery or concubinage wit h t he spouse of t he t est at or; (6) Any person who by fraud, violence, int imidat ion, or undue influence should cause t he t est at or t o make a will or t o change one already made; (7 ) Any person who by t he same means prevent s anot her from making a will, or from revoking one already made, or who supplant s, conceals, or alt ers t he lat t er's will; (8) Any person who falsifies or forges a supposed will of t he decedent . (756, 673, 674a ) Art . 1033. The cause of unwort hiness shall be wit hout effect if t he t est at or had knowledge t hereof at t he t ime he made t he will, or if, having known of t hem subsequent ly , he should condone t hem in writ ing. (757a ) Art . 1034. In order t o judge t he capacit y of t he heir, devisee or legat ee, his qualificat ion at t he t ime of t he deat h of t he decedent shall be t he crit erion. In cases falling under Nos. 2, 3, or 5 of Art icle 1032, it shall be necessary t o wait unt il final judgment is rendered, and in t he case falling under No. 4, t he expirat ion of t he mont h allowed for t he report . If t he inst it ut ion, devise or legacy should be condit ional, t he t ime of t he compliance wit h t he condit ion shall also be considered. (758a ) Art . 1035. If t he person excluded from t he inherit ance by reason of incapacit y should be a child or descendant of t he decedent and should have children or descendant s, t he lat t er shall acquire his right t o t he legit ime. The person so excluded shall not enjoy t he usufruct and administ rat ion of t he propert y t hus inherit ed by his children.
(761 a )
Art . 1036. Alienat ions of heredit ary propert y , and act s of administ rat ion performed by t he excluded heir, before t he judicial order of exclusion, are valid as t o t he t hird persons who act ed in good fait h; but t he co-heirs shall have a right t o recover damages from t he disqualified heir. (n ) Art . 1037 . The unwort hy heir who is excluded from t he succession has a right t o demand indemnit y or any expenses incurred in t he preservat ion of t he heredit ary propert y , and t o enforce such credit s as he may have against t he est at e.
(n )
Art . 1038. Any person incapable of succession, who, disregarding t he prohibit ion st at ed in t he preceding art icles, ent ered int o t he possession of t he heredit ary propert y , shall be obliged t o ret urn it t oget her it it s accessions. He shall be liable for all t he fruit s and rent s he may have received, or could have received t hrough t he exercise of due diligence. (760a ) Art . 1039. Capacit y t o succeed is governed by t he law of t he nat ion of t he decedent . (n ) Art . 1040. The act ion for a declarat ion of incapacit y and for t he recovery of t he inherit ance, devise or legacy shall be brought wit hin five y ears from t he t ime t he disqualified person t ook possession t hereof. It may be brought by any one who may have an int erest in t he succession. (762a )
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SECTION 3. - Accept ance and Repudiat ion of t he Inherit ance Art . 1041. The accept ance or repudiat ion of t he inherit ance is an act which is purely volunt ary and free. (988) Art . 1042. The effect s of t he accept ance or repudiat ion shall alway s ret roact t o t he moment of t he deat h of t he decedent . (989) Art . 1043. No person may accept or repudiat e an inherit ance unless he is cert ain of t he deat h of t he person from whom he is t o inherit , and of his right t o t he inherit ance. (991 ) Art . 1044. Any person having t he free disposal of his propert y may accept or repudiat e an inherit ance. Any inherit ance left t o minors or incapacit at ed persons may be accept ed by t heir parent s or guardians. Parent s or guardians may repudiat e t he inherit ance left t o t heir wards only by judicial aut horizat ion. The right t o accept an inherit ance left t o t he poor shall belong t o t he persons designat ed by t he t est at or t o det ermine t he beneficiaries and dist ribut e t he propert y , or in t heir default , t o t hose ment ioned in Art icle 1030. (992a ) Art . 1045. The lawful represent at ives of corporat ions, associat ions, inst it ut ions and ent it ies qualified t o acquire propert y may accept any inherit ance left t o t he lat t er, but in order t o repudi at e it , t he approval of t he court shall be necessary . (993a ) Art . 1046. Public official est ablishment s can neit her accept nor repudiat e an inherit ance wit hout t he approval of t he government . (994) Art . 1047 . A married woman of age may repudiat e an inherit ance wit hout t he consent of her husband. (995a ) Art . 1048. Deaf-mut es who can read and writ e may accept or repudiat e t he inherit ance personally or t hrough an agent . Should t hey not be able t o read and writ e, t he inherit ance shall be accept ed by t heir guardians. These guardians may repudiat e t he same wit h judicial approval. (996a) Art . 1049. Accept ance may be express or t acit . An express accept ance must be made in a public or privat e document . A t acit accept ance is one result ing from act s by which t he int ent ion t o accept is necessarily implied, or which one would have no right t o do except in t he capacit y of an heir. Act s of mere preservat ion or provisional administ rat ion do not imply an accept ance of t he inherit ance if, t hrough such act s, t he t it le or capacit y of an heir has not been assumed. (999a ) Art . 1050. An inherit ance is deemed accept ed: (1) If t he heirs sells, donat es, or assigns his right t o a st ranger, or t o his co-heirs, or t o any of t hem; (2) If t he heir renounces t he same, even t hough grat uit ously , for t he benefit of one or more of his co-heirs; (3) If he renounces it for a price in favor of all his co-heirs indiscriminat ely ; but if t his renunciat ion should be grat uit ous, and t he co-heirs in whose favor it is made are t hose upon whom t he port ion renounced should devolve by virt ue of accret ion, t he inherit ance shall not be deemed as accept ed. (1 000) Art . 1051. The repudiat ion of an inherit ance shall be made in a public or aut hent ic inst rument , or by pet it ion present ed t o t he court having jurisdict ion over t he t est ament ary or int est at e proceedings. (1 008) Art . 1052. If t he heir repudiat es t he inherit ance t o t he prejudice of his own credit ors, t he lat t er may pet it ion t he court t o aut horize t hem t o accept it in t he name of t he heir. The accept ance shall benefit t he credit ors only t o an ext ent sufficient t o cover t he amount of t heir credit s. The excess, should t here be any , shall in no case pert ain t o t he renouncer, but shall be adjudicat ed t o t he persons t o whom, in accordance wit h t he rules est ablished in t his Code, it may belong. (1 001 ) Art . 1053. If t he heir should die wit hout having accept ed or repudiat ed t he inherit ance his right shall be t ransmit t ed t o his heirs. (1 006) Art . 1054. Should t here be several heirs called t o t he inherit ance, some of t hem may accept and t he ot hers may repudiat e it . (1 007a ) Art . 1055. If a person, who is called t o t he same inherit ance as an heir by will and ab intestato , repudiat es t he inherit ance in his capacit y as a t est ament ary heir, he is underst ood t o have repudiat ed it in bot h capacit ies. Should he repudiat e it as an int est at e heir, wit hout knowledge of his being a t est ament ary heir, he may st ill accept it in t he lat t er capacit y . (1 009) Art . 1056. The accept ance or repudiat ion of an inherit ance, once made, is irrevocable, and cannot be impugned, except
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when it was made t hrough any of t he causes t hat vit iat e consent , or when an unknown will appears. (997) Art . 1057 . Wit hin t hirt y day s aft er t he court has issued an order for t he dist ribut ion of t he est at e in accordance wit h t he Rules of Court , t he heirs, devisees and legat ees shall signify t o t he court having jurisdict ion whet her t hey accept or repudiat e t he inherit ance. If t hey do not do so wit hin t hat t ime, t hey are deemed t o have accept ed t he inherit ance. (n ) SECTION 4. - Execut ors and Administ rat ors Art . 1058. All mat t ers relat ing t o t he appoint ment , powers and dut ies of execut ors and administ rat ors and concerning t he administ rat ion of est at es of deceased persons shall be governed by t he Rules of Court . (n ) Art . 1059. If t he asset s of t he est at e of a decedent which can be applied t o t he pay ment of debt s are not sufficient for t hat purpose, t he provisions of Art icles 2239 t o 2251 on Preference of Credit s shall be observed, provided t hat t he expenses referred t o in Art icle 2244, No. 8, shall be t hose involved in t he administ rat ion of t he decedent 's est at e. (n ) Art . 1060. A corporat ion or associat ion aut horized t o conduct t he business of a t rust company in t he Philippines may be appoint ed as an execut or, administ rat or, guardian of an est at e, or t rust ee, in like manner as an individual; but it shall not be appoint ed guardian of t he person of a ward. (n ) SECTION 5. - Collat ion Art . 1061. Every compulsory heir, who succeeds wit h ot her compulsory heirs, must bring int o t he mass of t he est at e any propert y or right which he may have received from t he decedent , during t he lifet ime of t he lat t er, by way of donat ion, or any ot her grat uit ous t it le, in order t hat it may be comput ed in t he det erminat ion of t he legit ime of each heir, and in t he account of t he part it ion. (1 035a ) Art . 1062. Collat ion shall not t ake place among compulsory heirs if t he donor should have so expressly provided, or if t he donee should repudiat e t he inherit ance, unless t he donat ion should be reduced as inofficious. (1 036) Art . 1063. Propert y left by will is not deemed subject t o collat ion, if t he t est at or has not ot herwise provided, but t he legit ime shall in any case remain unimpaired. (1 037) Art . 1064. When t he grandchildren, who survive wit h t heir uncles, aunt s, or cousins, inherit from t heir grandparent s in represent at ion of t heir fat her or mot her, t hey shall bring t o collat ion all t hat t heir parent s, if alive, would have been obliged t o bring, even t hough such grandchildren have not inherit ed t he propert y . They shall also bring t o collat ion all t hat t hey may have received from t he decedent during his lifet ime, unless t he t est at or has provided ot herwise, in which case his wishes must be respect ed, if t he legit ime of t he co-heirs is not prejudiced. (1 038) Art . 1065. Parent s are not obliged t o bring t o collat ion in t he inherit ance of t heir ascendant s any propert y which may have been donat ed by t he lat t er t o t heir children. (1 039) Art . 1066. Neit her shall donat ions t o t he spouse of t he child be brought t o collat ion; but if t hey have been given by t he parent t o t he spouses joint ly , t he child shall be obliged t o bring t o collat ion one-half of t he t hing donat ed. (1 040) Art . 1067 . Expenses for support , educat ion, medical at t endance, even in ext raordinary illness, apprent iceship, ordinary equipment , or cust omary gift s are not subject t o collat ion. (1 041 ) Art . 1068. Expenses incurred by t he parent s in giving t heir children a professional, vocat ional or ot her career shall not be brought t o collat ion unless t he parent s so provide, or unless t hey impair t he legit ime; but when t heir collat ion is required, t he sum which t he child would have spent if he had lived in t he house and company of his parent s shall be deduct ed t herefrom. (1 042a ) Art . 1069. Any sums paid by a parent in sat isfact ion of t he debt s of his children, elect ion expenses, fines, and similar expenses shall be brought t o collat ion. (1 043a ) Art . 107 0. Wedding gift s by parent s and ascendant s consist ing of jewelry , clot hing, and out fit , shall not be reduced as inofficious except insofar as t hey may exceed one-t ent h of t he sum which is disposable by will. (1044) Art . 107 1. The same t hings donat ed are not t o be brought t o collat ion and part it ion, but only t heir value at t he t ime of t he donat ion, even t hough t heir just value may not t hen have been assessed. Their subsequent increase or det eriorat ion and even t heir t ot al loss or dest ruct ion, be it accident al or culpable, shall be for t he benefit or account and risk of t he donee. (1 045a ) Art . 107 2. In t he collat ion of a donat ion made by bot h parent s, one-half shall be brought t o t he inherit ance of t he fat her, and t he ot her half, t o t hat of t he mot her. That given by one alone shall be brought t o collat ion in his or her inherit ance. (1 046a )
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Art . 107 3. The donee's share of t he est at e shall be reduced by an amount equal t o t hat already received by him; and his co-heirs shall receive an equivalent , as much as possible, in propert y of t he same nat ure, class and qualit y . (1 047) Art . 107 4. Should t he provisions of t he preceding art icle be impract icable, if t he propert y donat ed was immovable, t he co-heirs shall be ent it led t o receive it s equivalent in cash or securit ies, at t he rat e of quot at ion; and should t here be neit her cash or market able securit ies in t he est at e, so much of t he ot her propert y as may be necessary shall be sold at public auct ion. If t he propert y donat ed was movable, t he co-heirs shall only have a right t o select an equivalent of ot her personal propert y of t he inherit ance at it s just price. (1 048) Art . 107 5. The fruit s and int erest of t he propert y subject t o collat ion shall not pert ain t o t he est at e except from t he day on which t he succession is opened. For t he purpose of ascert aining t heir amount , t he fruit s and int erest of t he propert y of t he est at e of t he same kind and qualit y as t hat subject t o collat ion shall be made t he st andard of assessment . (1 049) Art . 107 6. The co-heirs are bound t o reimburse t o t he donee t he necessary expenses which he has incurred for t he preservat ion of t he propert y donat ed t o him, t hough t hey may not have augment ed it s value. The donee who collat es in kind an immovable which has been given t o him must be reimbursed by his co-heirs for t he improvement s which have increased t he value of t he propert y , and which exist at t he t ime t he part it ion if effect ed. As t o works made on t he est at e for t he mere pleasure of t he donee, no reimbursement is due him for t hem; he has, however, t he right t o remove t hem, if he can do so wit hout injuring t he est at e. (n ) Art . 107 7 . Should any quest ion arise among t he co-heirs upon t he obligat ion t o bring t o collat ion or as t o t he t hings which are subject t o collat ion, t he dist ribut ion of t he est at e shall not be int errupt ed for t his reason, provided adequat e securit y is given. (1 050) SECTION 6. - Part it ion and Dist ribut ion of t he Est at e SUBSECTION 1. - Part it ion Art . 107 8. Where t here are t wo or more heirs, t he whole est at e of t he decedent is, before it s part it ion, owned in common by such heirs, subject t o t he pay ment of debt s of t he deceased. (n ) Art . 107 9. Part it ion, in general, is t he separat ion, division and assignment of a t hing held in common among t hose t o whom it may belong. The t hing it self may be divided, or it s value. (n ) Art . 1080. Should a person make part it ion of his est at e by an act int er vivos, or by will, such part it ion shall be respect ed, insofar as it does not prejudice t he legit ime of t he compulsory heirs. A parent who, in t he int erest of his or her family , desires t o keep any agricult ural, indust rial, or manufact uring ent erprise int act , may avail himself of t he right grant ed him in t his art icle, by ordering t hat t he legit ime of t he ot her children t o whom t he propert y is not assigned, be paid in cash. (1 056a ) Art . 1081. A person may , by an act int er vivos or mort is causa, int rust t he mere power t o make t he part it ion aft er his deat h t o any person who is not one of t he co-heirs. The provisions of t his and of t he preceding art icle shall be observed even should t here be among t he co-heirs a minor or a person subject t o guardianship; but t he mandat ary , in such case, shall make an invent ory of t he propert y of t he est at e, aft er not ify ing t he co-heirs, t he credit ors, and t he legat ees or devisees. (1 057a ) Art . 1082. Every act which is int ended t o put an end t o indivision among co-heirs and legat ees or devisees is deemed t o be a part it ion, alt hough it should purport t o be a sale, and exchange, a compromise, or any ot her t ransact ion. (n ) Art . 1083. Every co-heir has a right t o demand t he division of t he est at e unless t he t est at or should have expressly forbidden it s part it ion, in which case t he period of indivision shall not exceed t went y y ears as provided in art icle 494. This power of t he t est at or t o prohibit division applies t o t he legit ime. Even t hough forbidden by t he t est at or, t he co-ownership t erminat es when any of t he causes for which part nership is dissolved t akes place, or when t he court finds for compelling reasons t hat division should be ordered, upon pet it ion of one of t he co-heirs. (1 051 a ) Art . 1084. Volunt ary heirs upon whom some condit ion has been imposed cannot demand a part it ion unt il t he condit ion has been fulfilled; but t he ot her co-heirs may demand it by giving sufficient securit y for t he right s which t he former may have in case t he condit ion should be complied wit h, and unt il it is known t hat t he condit ion has not been fulfilled or can never be complied wit h, t he part it ion shall be underst ood t o be provisional. (1 054a ) Art . 1085. In t he part it ion of t he est at e, equalit y shall be observed as far as possible, dividing t he propert y int o lot s, or assigning t o each of t he co-heirs t hings of t he same nat ure, qualit y and kind. (1 061 )
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Art . 1086. Should a t hing be indivisible, or would be much impaired by it s being divided, it may be adjudicat ed t o one of t he heirs, provided he shall pay t he ot hers t he excess in cash. Nevert heless, if any of t he heirs should demand t hat t he t hing be sold at public auct ion and t hat st rangers be allowed t o bid, t his must be done. (1 062) Art . 1087 . In t he part it ion t he co-heirs shall reimburse one anot her for t he income and fruit s which each one of t hem may have received from any propert y of t he est at e, for any useful and necessary expenses made upon such propert y , and for any damage t heret o t hrough malice or neglect . (1 063) Art . 1088. Should any of t he heirs sell his heredit ary right s t o a st ranger before t he part it ion, any or all of t he co-heirs may be subrogat ed t o t he right s of t he purchaser by reimbursing him for t he price of t he sale, provided t hey do so wit hin t he period of one mont h from t he t ime t hey were not ified in writ ing of t he sale by t he vendor. (1 067a ) Art . 1089. The t it les of acquisit ion or ownership of each propert y shall be delivered t o t he co-heir t o whom said propert y has been adjudicat ed. (1 065a ) Art . 1090. When t he t it le comprises t wo or more pieces of land which have been assigned t o t wo or more co-heirs, or when it covers one piece of land which has been divided bet ween t wo or more co-heirs, t he t it le shall be delivered t o t he one having t he largest int erest , and aut hent ic copies of t he t it le shall be furnished t o t he ot her co-heirs at t he expense of t he est at e. If t he int erest of each co-heir should be t he same, t he oldest shall have t he t it le. (1 066a ) SUBSECTION 2. - Effect s of Part it ion Art . 1091. A part it ion legally made confers upon each heir t he exclusive ownership of t he propert y adjudicat ed t o him.
(1 068)
Art . 1092. Aft er t he part it ion has been made, t he co-heirs shall be reciprocally bound t o warrant t he t it le t o, and t he qualit y of, each propert y adjudicat ed. (1 069a ) Art . 1093. The reciprocal obligat ion of warrant y referred t o in t he preceding art icle shall be proport ionat e t o t he respect ive heredit ary shares of t he co-heirs, but if any one of t hem should be insolvent , t he ot her co-heirs shall be liable for his part in t he same proport ion, deduct ing t he part corresponding t o t he one who should be indemnified. Those who pay for t he insolvent heir shall have a right of act ion against him for reimbursement , should his financial condit ion improve. (1 071 ) Art . 1094. An act ion t o enforce t he warrant y among heirs must be brought wit hin t en y ears from t he dat e t he right of act ion accrues. (n ) Art . 1095. If a credit should be assigned as collect ible, t he co-heirs shall not be liable for t he subsequent insolvency of t he debt or of t he est at e, but only for his insolvency at t he t ime t he part it ion is made. The warrant y of t he solvency of t he debt or can only be enforced during t he five y ears following t he part it ion. Co-heirs do not warrant bad debt s, if so known t o, and accept ed by , t he dist ribut ee. But if such debt s are not assigned t o a co-heir, and should be collect ed, in whole or in part , t he amount collect ed shall be dist ribut ed proport ionat ely among t he heirs. (1 072a ) Art . 1096. The obligat ion of warrant y among co-heirs shall cease in t he following cases: (1) When t he t est at or himself has made t he part it ion, unless it appears, or it may be reasonably presumed, t hat his int ent ion was ot herwise, but t he legit ime shall alway s remain unimpaired; (2) When it has been so expressly st ipulat ed in t he agreement of part it ion, unless t here has been bad fait h; (3) When t he evict ion is due t o a cause subsequent t o t he part it ion, or has been caused by t he fault of t he dist ribut ee of t he propert y . (1 070a ) SUBSECTION 3. - Rescission and Nullit y of Part it ion Art . 1097 . A part it ion may be rescinded or annulled for t he same causes as cont ract s. (1 073a ) Art . 1098. A part it ion, judicial or ext ra-judicial, may also be rescinded on account of lesion, when any one of t he coheirs received t hings whose value is less, by at least one-fourt h, t han t he share t o which he is ent it led, considering t he value of t he t hings at t he t ime t hey were adjudicat ed. (1 074a ) Art . 1099. The part it ion made by t he t est at or cannot be impugned on t he ground of lesion, except when t he legit ime of t he compulsory heirs is t hereby prejudiced, or when it appears or may reasonably be presumed, t hat t he int ent ion of t he t est at or was ot herwise. (1 075) Art . 1100. The act ion for rescission on account of lesion shall prescribe aft er four y ears from t he t ime t he part it ion was
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made. (107 6) Art . 1101. The heir who is sued shall have t he opt ion of indemnify ing t he plaint iff for t he loss, or consent ing t o a new part it ion. Indemnit y may be made by pay ment in cash or by t he delivery of a t hing of t he same kind and qualit y as t hat awarded t o t he plaint iff. If a new part it ion is made, it shall affect neit her t hose who have not been prejudiced nor t hose have not received more t han t heir just share. (1 077a ) Art . 1102. An heir who has alienat ed t he whole or a considerable part of t he real propert y adjudicat ed t o him cannot maint ain an act ion for rescission on t he ground of lesion, but he shall have a right t o be indemnified in cash. (1 078a ) Art . 1103. The omission of one or more object s or securit ies of t he inherit ance shall not cause t he rescission of t he part it ion on t he ground of lesion, but t he part it ion shall be complet ed by t he dist ribut ion of t he object s or securit ies which have been omit t ed. (1 079a ) Art . 1104. A part it ion made wit h pret erit ion of any of t he compulsory heirs shall not be rescinded, unless it be proved t hat t here was bad fait h or fraud on t he part of t he ot her persons int erest ed; but t he lat t er shall be proport ionat ely obliged t o pay t o t he person omit t ed t he share which belongs t o him. (1 080) Art . 1105. A part it ion which includes a person believed t o be an heir, but who is not , shall be void only wit h respect t o such person. (1 081 a ) Tit le V. - PRESCRIPTION CHAPTER 1 GENERAL PROVISIONS Art . 1106. By prescript ion, one acquires ownership and ot her real right s t hrough t he lapse of t ime in t he manner and under t he condit ions laid down by law. In t he same way , right s and condit ions are lost by prescript ion. (1 930a ) Art . 1107 . Persons who are capable of acquiring propert y or right s by t he ot her legal modes may acquire t he same by means of prescript ion. Minors and ot her incapacit at ed persons may acquire propert y or right s by prescript ion, eit her personally or t hrough t heir parent s, guardians or legal represent at ives. (1 931 a ) Art . 1108. Prescript ion, bot h acquisit ive and ext inct ive, runs against : (1) Minors and ot her incapacit at ed persons who have parent s, guardians or ot her legal represent at ives; (2) Absent ees who have administ rat ors, eit her appoint ed by t hem before t heir disappearance, or appoint ed by t he court s; (3) Persons living abroad, who have managers or administ rat ors; (4) Juridical persons, except t he St at e and it s subdivisions. Persons who are disqualified from administ ering t heir propert y have a right t o claim damages from t heir legal represent at ives whose negligence has been t he cause of prescript ion. (1 932a ) Art . 1109. Prescript ion does not run bet ween husband and wife, even t hough t here be a separat ion of propert y agreed upon in t he marriage set t lement s or by judicial decree. Neit her does prescript ion run bet ween parent s and children, during t he minorit y or insanit y of t he lat t er, and bet ween guardian and ward during t he cont inuance of t he guardianship. (n ) Art . 1110. Prescript ion, acquisit ive and ext inct ive, runs in favor of, or against a married woman. (n ) Art . 1111. Prescript ion obt ained by a co-propriet or or a co-owner shall benefit t he ot hers. (1 933) Art . 1112. Persons wit h capacit y t o alienat e propert y may renounce prescript ion already obt ained, but not t he right t o prescribe in t he fut ure. Prescript ion is deemed t o have been t acit ly renounced when t he renunciat ion result s from act s which imply t he abandonment of t he right acquired. (1 935) Art . 1113. All t hings which are wit hin t he commerce of men are suscept ible of prescript ion, unless ot herwise provided. Propert y of t he St at e or any of it s subdivisions not pat rimonial in charact er shall not be t he object of prescript ion.
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(1 936a )
Art . 1114. Credit ors and all ot her persons int erest ed in making t he prescript ion effect ive may avail t hemselves t hereof not wit hst anding t he express or t acit renunciat ion by t he debt or or propriet or. (1 937) Art . 1115. The provisions of t he present Tit le are underst ood t o be wit hout prejudice t o what in t his Code or in special laws is est ablished wit h respect t o specific cases of prescript ion. (1 938) Art . 1116. Prescript ion already running before t he effect ivit y of t his Code shall be governed by laws previously in force; but if since t he t ime t his Code t ook effect t he ent ire period herein required for prescript ion should elapse, t he present Code shall be applicable, even t hough by t he former laws a longer period might be required. (1 939) CHAPTER 2 PRESCRIPTION OF OWNERSHIP AND OTHER REAL RIGHTS Art . 1117 . Acquisit ive prescript ion of dominion and ot her real right s may be ordinary or ext raordinary . Ordinary acquisit ive prescript ion requires possession of t hings in good fait h and wit h just t it le for t he t ime fixed by law. (1 940a) Art . 1118. Possession has t o be in t he concept of an owner, public, peaceful and unint errupt ed. (1 941 ) Art . 1119. Act s of possessory charact er execut ed in virt ue of license or by mere t olerance of t he owner shall not be available for t he purposes of possession. (1 942) Art . 1120. Possession is int errupt ed for t he purposes of prescript ion, nat urally or civilly . (1 943) Art . 1121. Possession is nat urally int errupt ed when t hrough any cause it should cease for more t han one y ear. The old possession is not revived if a new possession should be exercised by t he same adverse claimant . (1 944a ) Art . 1122. If t he nat ural int errupt ion is for only one y ear or less, t he t ime elapsed shall be count ed in favor of t he prescript ion. (n ) Art . 1123. Civil int errupt ion is produced by judicial summons t o t he possessor. (1 945a ) Art . 1124. Judicial summons shall be deemed not t o have been issued and shall not give rise t o int errupt ion: (1) If it should be void for lack of legal solemnit ies; (2) If t he plaint iff should desist from t he complaint or should allow t he proceedings t o lapse; (3) If t he possessor should be absolved from t he complaint . In all t hese cases, t he period of t he int errupt ion shall be count ed for t he prescript ion. (1 946a ) Art . 1125. Any express or t acit recognit ion which t he possessor may make of t he owner's right also int errupt s possession. (1 948) Art . 1126. Against a t it le recorded in t he Regist ry of Propert y , ordinary prescript ion of ownership or real right s shall not t ake place t o t he prejudice of a t hird person, except in virt ue of anot her t it le also recorded; and t he t ime shall begin t o run from t he recording of t he lat t er. As t o lands regist ered under t he Land Regist rat ion Act , t he provisions of t hat special law shall govern. (1 949a ) Art . 1127 . The good fait h of t he possessor consist s in t he reasonable belief t hat t he person from whom he received t he t hing was t he owner t hereof, and could t ransmit his ownership. (1 950a ) Art . 1128. The condit ions of good fait h required for possession in Art icles 526, 527 , 528, and 529 of t his Code are likewise necessary for t he det erminat ion of good fait h in t he prescript ion of ownership and ot her real right s. (1 951 ) Art . 1129. For t he purposes of prescript ion, t here is just t it le when t he adverse claimant came int o possession of t he propert y t hrough one of t he modes recognized by law for t he acquisit ion of ownership or ot her real right s, but t he grant or was not t he owner or could not t ransmit any right . (n ) Art . 1130. The t it le for prescript ion must be t rue and valid. (1 953) Art . 1131. For t he purposes of prescript ion, just t it le must be proved; it is never presumed. (1 954a ) Art . 1132. The ownership of movables prescribes t hrough unint errupt ed possession for four y ears in good fait h. The ownership of personal propert y also prescribes t hrough unint errupt ed possession for eight y ears, wit hout need of any ot her condit ion.
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Wit h regard t o t he right of t he owner t o recover personal propert y lost or of which he has been illegally deprived, as well as wit h respect t o movables acquired in a public sale, fair, or market , or from a merchant 's st ore t he provisions of Art icles 559 and 1505 of t his Code shall be observed. (1 955a ) Art . 1133. Movables possessed t hrough a crime can never be acquired t hrough prescript ion by t he offender. (1 956a ) Art . 1134. Ownership and ot her real right s over immovable propert y are acquired by ordinary prescript ion t hrough possession of t en y ears. (1 957a ) Art . 1135. In case t he adverse claimant possesses by mist ake an area great er, or less t han t hat expressed in his t it le, prescript ion shall be based on t he possession. (n ) Art . 1136. Possession in wart ime, when t he civil court s are not open, shall not be count ed in favor of t he adverse claimant . Art . 1137 . Ownership and ot her real right s over immovables also prescribe t hrough unint errupt ed adverse possession t hereof for t hirt y y ears, wit hout need of t it le or of good fait h. (1 959a ) Art . 1138. In t he comput at ion of t ime necessary for prescript ion t he following rules shall be observed: (1) The present possessor may complet e t he period necessary for prescript ion by t acking his possession t o t hat of his grant or or predecessor in int erest ; (2) It is presumed t hat t he present possessor who was also t he possessor at a previous t ime, has cont inued t o be in possession during t he int ervening t ime, unless t here is proof t o t he cont rary ; (3) The first day shall be excluded and t he last day included. (1 960a ) CHAPTER 3 PRESCRIPTION OF ACTIONS Art . 1139. Act ions prescribe by t he mere lapse of t ime fixed by law. (1 961 ) Art . 1140. Act ions t o recover movables shall prescribe eight y ears from t he t ime t he possession t hereof is lost , unless t he possessor has acquired t he ownership by prescript ion for a less period, according t o Art icles 1132, and wit hout prejudice t o t he provisions of Art icles 559, 1505, and 1133. (1 962a ) Art . 1141. Real act ions over immovables prescribe aft er t hirt y y ears. This provision is wit hout prejudice t o what is est ablished for t he acquisit ion of ownership and ot her real right s by prescript ion. (1 963) Art . 1142. A mort gage act ion prescribes aft er t en y ears. (1 964a ) Art . 1143. The following right s, among ot hers specified elsewhere in t his Code, are not ext inguished by prescript ion: (1) To demand a right of way , regulat ed in Art icle 649; (2) To bring an act ion t o abat e a public or privat e nuisance. (n ) Art . 1144. The following act ions must be brought wit hin t en y ears from t he t ime t he right of act ion accrues: (1) Upon a writ t en cont ract ; (2) Upon an obligat ion creat ed by law; (3) Upon a judgment . (n ) Art . 1145. The following act ions must be commenced wit hin six y ears: (1) Upon an oral cont ract ; (2) Upon a quasi-cont ract . (n ) Art . 1146. The following act ions must be inst it ut ed wit hin four y ears: (1) Upon an injury t o t he right s of t he plaint iff; (2) Upon a quasi-delict ; However, when t he act ion arises from or out of any act , act ivit y , or conduct of any public officer involving t he exercise of powers or aut horit y arising from Mart ial Law including t he arrest , det ent ion and/or t rial of t he plaint iff, t he same must be brought wit hin one (1) y ear. (As a men ded by PD No. 1 755, Dec. 24, 1 980.) Art . 1147 . The following act ions must be filed wit hin one y ear:
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(1) For forcible ent ry and det ainer; (2) For defamat ion. (n ) Art . 1148. The limit at ions of act ion ment ioned in Art icles 1140 t o 1142, and 1144 t o 1147 are wit hout prejudice t o t hose specified in ot her part s of t his Code, in t he Code of Commerce, and in special laws. (n ) Art . 1149. All ot her act ions whose periods are not fixed in t his Code or in ot her laws must be brought wit hin five y ears from t he t ime t he right of act ion accrues. (n ) Art . 1150. The t ime for prescript ion for all kinds of act ions, when t here is no special provision which ordains ot herwise, shall be count ed from t he day t hey may be brought . (1 969) Art . 1151. The t ime for t he prescript ion of act ions which have for t heir object t he enforcement of obligat ions t o pay principal wit h int erest or annuit y runs from t he last pay ment of t he annuit y or of t he int erest . (1 970a ) Art . 1152. The period for prescript ion of act ions t o demand t he fulfillment of obligat ion declared by a judgment commences from t he t ime t he judgment became final. (1 971 ) Art . 1153. The period for prescript ion of act ions t o demand account ing runs from t he day t he persons who should render t he same cease in t heir funct ions. The period for t he act ion arising from t he result of t he account ing runs from t he dat e when said result was recognized by agreement of t he int erest ed part ies. (1 972) Art . 1154. The period during which t he obligee was prevent ed by a fort uit ous event from enforcing his right is not reckoned against him. (n ) Art . 1155. The prescript ion of act ions is int errupt ed when t hey are filed before t he court , when t here is a writ t en ext rajudicial demand by t he credit ors, and when t here is any writ t en acknowledgment of t he debt by t he debt or.
(1 973a )
BOOK IV OBLIGATIONS AND CONTRACTS Tit le. I. - OBLIGATIONS CHAPTER 1 GENERAL PROVISIONS Art . 1156. An obligat ion is a juridical necessit y t o give, t o do or not t o do. (n) Art . 1157 . Obligat ions arise from: (1) Law; (2) Cont ract s; (3) Quasi-cont ract s; (4) Act s or omissions punished by law; and (5) Quasi-delict s. (1089a) Art . 1158. Obligat ions derived from law are not presumed. Only t hose expressly det ermined in t his Code or in special laws are demandable, and shall be regulat ed by t he precept s of t he law which est ablishes t hem; and as t o what has not been foreseen, by t he provisions of t his Book. (1090) Art . 1159. Obligat ions arising from cont ract s have t he force of law bet ween t he cont ract ing part ies and should be complied wit h in good fait h. (1091a) Art . 1160. Obligat ions derived from quasi-cont ract s shall be subject t o t he provisions of Chapt er 1, Tit le XVII, of t his Book. (n) Art . 1161. Civil obligat ions arising from criminal offenses shall be governed by t he penal laws, subject t o t he provisions of Art icle 217 7 , and of t he pert inent provisions of Chapt er 2, Preliminary Tit le, on Human Relat ions, and of Tit le XVIII of t his Book, regulat ing damages. (1092a) Art . 1162. Obligat ions derived from quasi-delict s shall be governed by t he provisions of Chapt er 2, Tit le XVII of t his Book, and by special laws. (1093a)
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CHAPTER 2 NATURE AND EFFECT OF OBLIGATIONS Art . 1163. Every person obliged t o give somet hing is also obliged t o t ake care of it wit h t he proper diligence of a good fat her of a family , unless t he law or t he st ipulat ion of t he part ies requires anot her st andard of care. (1094a) Art . 1164. The credit or has a right t o t he fruit s of t he t hing from t he t ime t he obligat ion t o deliver it arises. However, he shall acquire no real right over it unt il t he same has been delivered t o him. (1095) Art . 1165. When what is t o be delivered is a det erminat e t hing, t he credit or, in addit ion t o t he right grant ed him by Art icle 117 0, may compel t he debt or t o make t he delivery . If t he t hing is indet erminat e or generic, he may ask t hat t he obligat ion be complied wit h at t he expense of t he debt or. If t he obligor delay s, or has promised t o deliver t he same t hing t o t wo or more persons who do not have t he same int erest , he shall be responsible for any fort uit ous event unt il he has effect ed t he delivery . (1096) Art . 1166. The obligat ion t o give a det erminat e t hing includes t hat of delivering all it s accessions and accessories, even t hough t hey may not have been ment ioned. (1097 a) Art . 1167 . If a person obliged t o do somet hing fails t o do it , t he same shall be execut ed at his cost . This same rule shall be observed if he does it in cont ravent ion of t he t enor of t he obligat ion. Furt hermore, it may be decreed t hat what has been poorly done be undone. (1098) Art . 1168. When t he obligat ion consist s in not doing, and t he obligor does what has been forbidden him, it shall also be undone at his expense. (1099a) Art . 1169. Those obliged t o deliver or t o do somet hing incur in delay from t he t ime t he obligee judicially or ext rajudicially demands from t hem t he fulfillment of t heir obligat ion. However, t he demand by t he credit or shall not be necessary in order t hat delay may exist : (1) When t he obligat ion or t he law expressly so declare; or (2) When from t he nat ure and t he circumst ances of t he obligat ion it appears t hat t he designat ion of t he t ime when t he t hing is t o be delivered or t he service is t o be rendered was a cont rolling mot ive for t he est ablishment of t he cont ract ; or (3) When demand would be useless, as when t he obligor has rendered it bey ond his power t o perform. In reciprocal obligat ions, neit her part y incurs in delay if t he ot her does not comply or is not ready t o comply in a proper manner wit h what is incumbent upon him. From t he moment one of t he part ies fulfills his obligat ion, delay by t he ot her begins. (1100a) Art . 117 0. Those who in t he performance of t heir obligat ions are guilt y of fraud, negligence, or delay , and t hose who in any manner cont ravene t he t enor t hereof, are liable for damages. (1101) Art . 117 1. Responsibilit y arising from fraud is demandable in all obligat ions. Any waiver of an act ion for fut ure fraud is void. (1102a) Art . 117 2. Responsibilit y arising from negligence in t he performance of every kind of obligat ion is also demandable, but such liabilit y may be regulat ed by t he court s, according t o t he circumst ances. (1103) Art . 117 3. The fault or negligence of t he obligor consist s in t he omission of t hat diligence which is required by t he nat ure of t he obligat ion and corresponds wit h t he circumst ances of t he persons, of t he t ime and of t he place. When negligence shows bad fait h, t he provisions of Art icles 117 1 and 2201, paragraph 2, shall apply . If t he law or cont ract does not st at e t he diligence which is t o be observed in t he performance, t hat which is expect ed of a good fat her of a family shall be required. (1104a) Art . 117 4. Except in cases expressly specified by t he law, or when it is ot herwise declared by st ipulat ion, or when t he nat ure of t he obligat ion requires t he assumpt ion of risk, no person shall be responsible for t hose event s which could not be foreseen, or which, t hough foreseen, were inevit able. (1105a) Art . 117 5. Usurious t ransact ions shall be governed by special laws. (n) Art . 117 6. The receipt of t he principal by t he credit or wit hout reservat ion wit h respect t o t he int erest , shall give rise t o t he presumpt ion t hat said int erest has been paid. The receipt of a lat er inst allment of a debt wit hout reservat ion as t o prior inst allment s, shall likewise raise t he presumpt ion t hat such inst allment s have been paid. (1110a) Art . 117 7 . The credit ors, aft er having pursued t he propert y in possession of t he debt or t o sat isfy t heir claims, may
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exercise all t he right s and bring all t he act ions of t he lat t er for t he same purpose, save t hose which are inherent in his person; t hey may also impugn t he act s which t he debt or may have done t o defraud t hem. (1111) Art . 117 8. Subject t o t he laws, all right s acquired in virt ue of an obligat ion are t ransmissible, if t here has been no st ipulat ion t o t he cont rary . (1112) CHAPTER 3 DIFFERENT KINDS OF OBLIGATIONS SECTION 1. - Pure and Condit ional Obligat ions Art . 117 9. Every obligat ion whose performance does not depend upon a fut ure or uncert ain event , or upon a past event unknown t o t he part ies, is demandable at once. Every obligat ion which cont ains a resolut ory condit ion shall also be demandable, wit hout prejudice t o t he effect s of t he happening of t he event . (1113) Art . 1180. When t he debt or binds himself t o pay when his means permit him t o do so, t he obligat ion shall be deemed t o be one wit h a period, subject t o t he provisions of Art icle 1197 . (n) Art . 1181. In condit ional obligat ions, t he acquisit ion of right s, as well as t he ext inguishment or loss of t hose already acquired, shall depend upon t he happening of t he event which const it ut es t he condit ion. (1114) Art . 1182. When t he fulfillment of t he condit ion depends upon t he sole will of t he debt or, t he condit ional obligat ion shall be void. If it depends upon chance or upon t he will of a t hird person, t he obligat ion shall t ake effect in conformit y wit h t he provisions of t his Code. (1115) Art . 1183. Impossible condit ions, t hose cont rary t o good cust oms or public policy and t hose prohibit ed by law shall annul t he obligat ion which depends upon t hem. If t he obligat ion is divisible, t hat part t hereof which is not affect ed by t he impossible or unlawful condit ion shall be valid. The condit ion not t o do an impossible t hing shall be considered as not having been agreed upon. (1116a) Art . 1184. The condit ion t hat some event happen at a det erminat e t ime shall ext inguish t he obligat ion as soon as t he t ime expires or if it has become indubit able t hat t he event will not t ake place. (1117 ) Art . 1185. The condit ion t hat some event will not happen at a det erminat e t ime shall render t he obligat ion effect ive from t he moment t he t ime indicat ed has elapsed, or if it has become evident t hat t he event cannot occur. If no t ime has been fixed, t he condit ion shall be deemed fulfilled at such t ime as may have probably been cont emplat ed, bearing in mind t he nat ure of t he obligat ion. (1118) Art . 1186. The condit ion shall be deemed fulfilled when t he obligor volunt arily prevent s it s fulfillment . (1119) Art . 1187 . The effect s of a condit ional obligat ion t o give, once t he condit ion has been fulfilled, shall ret roact t o t he day of t he const it ut ion of t he obligat ion. Nevert heless, when t he obligat ion imposes reciprocal prest at ions upon t he part ies, t he fruit s and int erest s during t he pendency of t he condit ion shall be deemed t o have been mut ually compensat ed. If t he obligat ion is unilat eral, t he debt or shall appropriat e t he fruit s and int erest s received, unless from t he nat ure and circumst ances of t he obligat ion it should be inferred t hat t he int ent ion of t he person const it ut ing t he same was different . In obligat ions t o do and not t o do, t he court s shall det ermine, in each case, t he ret roact ive effect of t he condit ion t hat has been complied wit h. (1120) Art . 1188. The credit or may , before t he fulfillment of t he condit ion, bring t he appropriat e act ions for t he preservat ion of his right . The debt or may recover what during t he same t ime he has paid by mist ake in case of a suspensive condit ion. (1121a) Art . 1189. When t he condit ions have been imposed wit h t he int ent ion of suspending t he efficacy of an obligat ion t o give, t he following rules shall be observed in case of t he improvement , loss or det eriorat ion of t he t hing during t he pendency of t he condit ion: (1) If t he t hing is lost wit hout t he fault of t he debt or, t he obligat ion shall be ext inguished; (2) If t he t hing is lost t hrough t he fault of t he debt or, he shall be obliged t o pay damages; it is underst ood t hat t he t hing is lost when it perishes, or goes out of commerce, or disappears in such a way t hat it s exist ence is unknown or it cannot be recovered; (3) When t he t hing det eriorat es wit hout t he fault of t he debt or, t he impairment is t o be borne by t he credit or; (4) If it det eriorat es t hrough t he fault of t he debt or, t he credit or may choose bet ween t he rescission of t he
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obligat ion and it s fulfillment , wit h indemnit y for damages in eit her case; (5) If t he t hing is improved by it s nat ure, or by t ime, t he improvement shall inure t o t he benefit of t he credit or; (6) If it is improved at t he expense of t he debt or, he shall have no ot her right t han t hat grant ed t o t he usufruct uary . (1122) Art . 1190. When t he condit ions have for t heir purpose t he ext inguishment of an obligat ion t o give, t he part ies, upon t he fulfillment of said condit ions, shall ret urn t o each ot her what t hey have received. In case of t he loss, det eriorat ion or improvement of t he t hing, t he provisions which, wit h respect t o t he debt or, are laid down in t he preceding art icle shall be applied t o t he part y who is bound t o ret urn. As for t he obligat ions t o do and not t o do, t he provisions of t he second paragraph of Art icle 1187 shall be observed as regards t he effect of t he ext inguishment of t he obligat ion. (1123) Art . 1191. The power t o rescind obligat ions is implied in reciprocal ones, in case one of t he obligors should not comply wit h what is incumbent upon him. The injured part y may choose bet ween t he fulfillment and t he rescission of t he obligat ion, wit h t he pay ment of damages in eit her case. He may also seek rescission, even aft er he has chosen fulfillment , if t he lat t er should become impossible. The court shall decree t he rescission claimed, unless t here be just cause aut horizing t he fixing of a period. This is underst ood t o be wit hout prejudice t o t he right s of t hird persons who have acquired t he t hing, in accordance wit h Art icles 1385 and 1388 and t he Mort gage Law. (1124) Art . 1192. In case bot h part ies have commit t ed a breach of t he obligat ion, t he liabilit y of t he first infract or shall be equit ably t empered by t he court s. If it cannot be det ermined which of t he part ies first violat ed t he cont ract , t he same shall be deemed ext inguished, and each shall bear his own damages. (n) SECTION 2. - Obligat ions wit h a Period Art . 1193. Obligat ions for whose fulfillment a day cert ain has been fixed, shall be demandable only when t hat day comes. Obligat ions wit h a resolut ory period t ake effect at once, but t erminat e upon arrival of t he day cert ain. A day cert ain is underst ood t o be t hat which must necessarily come, alt hough it may not be known when. If t he uncert aint y consist s in whet her t he day will come or not , t he obligat ion is condit ional, and it shall be regulat ed by t he rules of t he preceding Sect ion. (1125a) Art . 1194. In case of loss, det eriorat ion or improvement of t he t hing before t he arrival of t he day cert ain, t he rules in Art icle 1189 shall be observed. (n) Art . 1195. Any t hing paid or delivered before t he arrival of t he period, t he obligor being unaware of t he period or believing t hat t he obligat ion has become due and demandable, may be recovered, wit h t he fruit s and int erest s. (1126a) Art . 1196. Whenever in an obligat ion a period is designat ed, it is presumed t o have been est ablished for t he benefit of bot h t he credit or and t he debt or, unless from t he t enor of t he same or ot her circumst ances it should appear t hat t he period has been est ablished in favor of one or of t he ot her. (1127 ) Art . 1197 . If t he obligat ion does not fix a period, but from it s nat ure and t he circumst ances it can be inferred t hat a period was int ended, t he court s may fix t he durat ion t hereof. The court s shall also fix t he durat ion of t he period when it depends upon t he will of t he debt or. In every case, t he court s shall det ermine such period as may under t he circumst ances have been probably cont emplat ed by t he part ies. Once fixed by t he court s, t he period cannot be changed by t hem. (1128a) Art . 1198. The debt or shall lose every right t o make use of t he period: (1) When aft er t he obligat ion has been cont ract ed, he becomes insolvent , unless he gives a guarant y or securit y for t he debt ; (2) When he does not furnish t o t he credit or t he guarant ies or securit ies which he has promised; (3) When by his own act s he has impaired said guarant ies or securit ies aft er t heir est ablishment , and when t hrough a fort uit ous event t hey disappear, unless he immediat ely gives new ones equally sat isfact ory ; (4) When t he debt or violat es any undert aking, in considerat ion of which t he credit or agreed t o t he period;
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(5) When t he debt or at t empt s t o abscond. (1129a) SECTION 3. - Alt ernat ive Obligat ions Art . 1199. A person alt ernat ively bound by different prest at ions shall complet ely perform one of t hem. The credit or cannot be compelled t o receive part of one and part of t he ot her undert aking. (1131) Art . 1200. The right of choice belongs t o t he debt or, unless it has been expressly grant ed t o t he credit or. The debt or shall have no right t o choose t hose prest at ions which are impossible, unlawful or which could not have been t he object of t he obligat ion. (1132) Art . 1201. The choice shall produce no effect except from t he t ime it has been communicat ed. (1133) Art . 1202. The debt or shall lose t he right of choice when among t he prest at ions whereby he is alt ernat ively bound, only one is pract icable. (1134) Art . 1203. If t hrough t he credit or's act s t he debt or cannot make a choice according t o t he t erms of t he obligat ion, t he lat t er may rescind t he cont ract wit h damages. (n) Art . 1204. The credit or shall have a right t o indemnit y for damages when, t hrough t he fault of t he debt or, all t he t hings which are alt ernat ively t he object of t he obligat ion have been lost , or t he compliance of t he obligat ion has become impossible. The indemnit y shall be fixed t aking as a basis t he value of t he last t hing which disappeared, or t hat of t he service which last became impossible. Damages ot her t han t he value of t he last t hing or service may also be awarded. (1135a) Art . 1205. When t he choice has been expressly given t o t he credit or, t he obligat ion shall cease t o be alt ernat ive from t he day when t he select ion has been communicat ed t o t he debt or. Unt il t hen t he responsibilit y of t he debt or shall be governed by t he following rules: (1) If one of t he t hings is lost t hrough a fort uit ous event , he shall perform t he obligat ion by delivering t hat which t he credit or should choose from among t he remainder, or t hat which remains if only one subsist s; (2) If t he loss of one of t he t hings occurs t hrough t he fault of t he debt or, t he credit or may claim any of t hose subsist ing, or t he price of t hat which, t hrough t he fault of t he former, has disappeared, wit h a right t o damages; (3) If all t he t hings are lost t hrough t he fault of t he debt or, t he choice by t he credit or shall fall upon t he price of any one of t hem, also wit h indemnit y for damages. The same rules shall be applied t o obligat ions t o do or not t o do in case one, some or all of t he prest at ions should become impossible. (1136a) Art . 1206. When only one prest at ion has been agreed upon, but t he obligor may render anot her in subst it ut ion, t he obligat ion is called facult at ive. The loss or det eriorat ion of t he t hing int ended as a subst it ut e, t hrough t he negligence of t he obligor, does not render him liable. But once t he subst it ut ion has been made, t he obligor is liable for t he loss of t he subst it ut e on account of his delay , negligence or fraud. (n) SECTION 4. - Joint and Solidary Obligat ions Art . 1207 . The concurrence of t wo or more credit ors or of t wo or more debt ors in one and t he same obligat ion does not imply t hat each one of t he former has a right t o demand, or t hat each one of t he lat t er is bound t o render, ent ire compliance wit h t he prest at ion. There is a solidary liabilit y only when t he obligat ion expressly so st at es, or when t he law or t he nat ure of t he obligat ion requires solidarit y . (1137 a) Art . 1208. If from t he law, or t he nat ure or t he wording of t he obligat ions t o which t he preceding art icle refers t he cont rary does not a ppear, t he credit or debt shall be presumed t o be divided int o as many shares as t here are credit ors or debt ors, t he credit s or debt s being considered dist inct from one anot her, subject t o t he Rules of Court governing t he mult iplicit y of suit s. (1138a) Art . 1209. If t he division is impossible, t he right of t he credit ors may be prejudiced only by t heir collect ive act s, and t he debt can be enforced only by proceeding against all t he debt ors. If one of t he lat t er should be insolvent , t he ot hers shall not be liable for his share. (1139) Art . 1210. The indivisibilit y of an obligat ion does not necessarily give rise t o solidarit y . Nor does solidarit y of it self
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imply indivisibilit y . (n) Art . 1211. Solidarit y may exist alt hough t he credit ors and t he debt ors may not be bound in t he same manner and by t he same periods and condit ions. (1140) Art . 1212. Each one of t he solidary credit ors may do what ever may be useful t o t he ot hers, but not any t hing which may be prejudicial t o t he lat t er. (1141a) Art . 1213. A solidary credit or cannot assign his right s wit hout t he consent of t he ot hers. (n) Art . 1214. The debt or may pay any one of t he solidary credit ors; but if any demand, judicial or ext rajudicial, has been made by one of t hem, pay ment should be made t o him. (1142a) Art . 1215. Novat ion, compensat ion, confusion or remission of t he debt , made by any of t he solidary credit ors or wit h any of t he solidary debt ors, shall ext inguish t he obligat ion, wit hout prejudice t o t he provisions of Art icle 1219. The credit or who may have execut ed any of t hese act s, as well as he who collect s t he debt , shall be liable t o t he ot hers for t he share in t he obligat ion corresponding t o t hem. (1143) Art . 1216. The credit or may proceed against any one of t he solidary debt ors or some or all of t hem simult aneously . The demand made against one of t hem shall not be an obst acle t o t hose which may subsequent ly be direct ed against t he ot hers, so long as t he debt has not been fully collect ed. (1144a) Art . 1217 . Pay ment made by one of t he solidary debt ors ext inguishes t he obligat ion. If t wo or more solidary debt ors offer t o pay , t he credit or may choose which offer t o accept . He who made t he pay ment may claim from his co-debt ors only t he share which corresponds t o each, wit h t he int erest for t he pay ment already made. If t he pay ment is made before t he debt is due, no int erest for t he int ervening period may be demanded. When one of t he solidary debt ors cannot , because of his insolvency , reimburse his share t o t he debt or pay ing t he obligat ion, such share shall be borne by all his co-debt ors, in proport ion t o t he debt of each. (1145a) Art . 1218. Pay ment by a solidary debt or shall not ent it le him t o reimbursement from his co-debt ors if such pay ment is made aft er t he obligat ion has prescribed or become illegal. (n) Art . 1219. The remission made by t he credit or of t he share which affect s one of t he solidary debt ors does not release t he lat t er from his responsibilit y t owards t he co-debt ors, in case t he debt had been t ot ally paid by any one of t hem before t he remission was effect ed. (1146a) Art . 1220. The remission of t he whole obligat ion, obt ained by one of t he solidary debt ors, does not ent it le him t o reimbursement from his co-debt ors. (n) Art . 1221. If t he t hing has been lost or if t he prest at ion has become impossible wit hout t he fault of t he solidary debt ors, t he obligat ion shall be ext inguished. If t here was fault on t he part of any one of t hem, all shall be responsible t o t he credit or, for t he price and t he pay ment of damages and int erest , wit hout prejudice t o t heir act ion against t he guilt y or negligent debt or. If t hrough a fort uit ous event , t he t hing is lost or t he performance has become impossible aft er one of t he solidary debt ors has incurred in delay t hrough t he judicial or ext rajudicial demand upon him by t he credit or, t he provisions of t he preceding paragraph shall apply . (1147 a) Art . 1222. A solidary debt or may , in act ions filed by t he credit or, avail himself of all defenses which are derived from t he nat ure of t he obligat ion and of t hose which are personal t o him, or pert ain t o his own share. Wit h respect t o t hose which personally belong t o t he ot hers, he may avail himself t hereof only as regards t hat part of t he debt for which t he lat t er are responsible. (1148a) SECTION 5. - Divisible and Indivisible Obligat ions Art . 1223. The divisibilit y or indivisibilit y of t he t hings t hat are t he object of obligat ions in which t here is only one debt or and only one credit or does not alt er or modify t he provisions of Chapt er 2 of t his Tit le. (1149) Art . 1224. A joint indivisible obligat ion gives rise t o indemnit y for damages from t he t ime any one of t he debt ors does not comply wit h his undert aking. The debt ors who may have been ready t o fulfill t heir promises shall not cont ribut e t o t he indemnit y bey ond t he corresponding port ion of t he price of t he t hing or of t he value of t he service in which t he obligat ion consist s. (1150) Art . 1225. For t he purposes of t he preceding art icles, obligat ions t o give definit e t hings and t hose which are not suscept ible of part ial performance shall be deemed t o be indivisible. When t he obligat ion has for it s object t he execut ion of a cert ain number of day s of work, t he accomplishment of work
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by met rical unit s, or analogous t hings which by t heir nat ure are suscept ible of part ial performance, it shall be divisible. However, even t hough t he object or service may be phy sically divisible, an obligat ion is indivisible if so provided by law or int ended by t he part ies. In obligat ions not t o do, divisibilit y or indivisibilit y shall be det ermined by t he charact er of t he prest at ion in each part icular case. (1151a) SECTION 6. - Obligat ions wit h a Penal Clause Art . 1226. In obligat ions wit h a penal clause, t he penalt y shall subst it ut e t he indemnit y for damages and t he pay ment of int erest s in case of noncompliance, if t here is no st ipulat ion t o t he cont rary . Nevert heless, damages shall be paid if t he obligor refuses t o pay t he penalt y or is guilt y of fraud in t he fulfillment of t he obligat ion. The penalt y may be enforced only when it is demandable in accordance wit h t he provisions of t his Code. (1152a) Art . 1227 . The debt or cannot exempt himself from t he performance of t he obligat ion by pay ing t he penalt y , save in t he case where t his right has been expressly reserved for him. Neit her can t he credit or demand t he fulfillment of t he obligat ion and t he sat isfact ion of t he penalt y at t he same t ime, unless t his right has been clearly grant ed him. However, if aft er t he credit or has decided t o require t he fulfillment of t he obligat ion, t he performance t hereof should become impossible wit hout his fault , t he penalt y may be enforced. (1153a) Art . 1228. Proof of act ual damages suffered by t he credit or is not necessary in order t hat t he penalt y may be demanded. (n) Art . 1229. The judge shall equit ably reduce t he penalt y when t he principal obligat ion has been part ly or irregularly complied wit h by t he debt or. Even if t here has been no performance, t he penalt y may also be reduced by t he court s if it is iniquit ous or unconscionable. (1154a) Art . 1230. The nullit y of t he penal clause does not carry wit h it t hat of t he principal obligat ion. The nullit y of t he principal obligat ion carries wit h it t hat of t he penal clause. (1155) CHAPTER 4 EXTINGUISHMENT OF OBLIGATIONS GENERAL PROVISIONS Art . 1231. Obligat ions are ext inguished: (1) By pay ment or performance: (2) By t he loss of t he t hing due: (3) By t he condonat ion or remission of t he debt ; (4) By t he confusion or merger of t he right s of credit or and debt or; (5) By compensat ion; (6) By novat ion. Ot her causes of ext inguishment of obligat ions, such as annulment , rescission, fulfillment of a resolut ory condit ion, and prescript ion, are governed elsewhere in t his Code. (1156a) SECTION 1. - Pay ment or Performance Art . 1232. Pay ment means not only t he delivery of money but also t he performance, in any ot her manner, of an obligat ion. (n) Art . 1233. A debt shall not be underst ood t o have been paid unless t he t hing or service in which t he obligat ion consist s has been complet ely delivered or rendered, as t he case may be. (1157 ) Art . 1234. If t he obligat ion has been subst ant ially performed in good fait h, t he obligor may recover as t hough t here had been a st rict and complet e fulfillment , less damages suffered by t he obligee. (n) Art . 1235. When t he obligee accept s t he performance, knowing it s incomplet eness or irregularit y , and wit hout expressing any prot est or object ion, t he obligat ion is deemed fully complied wit h. (n) Art . 1236. The credit or is not bound t o accept pay ment or performance by a t hird person who has no int erest in t he
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fulfillment of t he obligat ion, unless t here is a st ipulat ion t o t he cont rary . Whoever pay s for anot her may demand from t he debt or what he has paid, except t hat if he paid wit hout t he knowledge or against t he will of t he debt or, he can recover only insofar as t he pay ment has been beneficial t o t he debt or. (1158a) Art . 1237 . Whoever pay s on behalf of t he debt or wit hout t he knowledge or against t he will of t he lat t er, cannot compel t he credit or t o subrogat e him in his right s, such as t hose arising from a mort gage, guarant y , or penalt y . (1159a) Art . 1238. Pay ment made by a t hird person who does not int end t o be reimbursed by t he debt or is deemed t o be a donat ion, which requires t he debt or's consent . But t he pay ment is in any case valid as t o t he credit or who has accept ed it . (n) Art . 1239. In obligat ions t o give, pay ment made by one who does not have t he free disposal of t he t hing due and capacit y t o alienat e it shall not be valid, wit hout prejudice t o t he provisions of Art icle 1427 under t he Tit le on "Natural Obligations ." (1160a) Art . 1240. Pay ment shall be made t o t he person in whose favor t he obligat ion has been const it ut ed, or his successor in int erest , or any person aut horized t o receive it . (1162a) Art . 1241. Pay ment t o a person who is incapacit at ed t o administ er his propert y shall be valid if he has kept t he t hing delivered, or insofar as t he pay ment has been beneficial t o him. Pay ment made t o a t hird person shall also be valid insofar as it has redounded t o t he benefit of t he credit or. Such benefit t o t he credit or need not be proved in t he following cases: (1) If aft er t he pay ment , t he t hird person acquires t he credit or's right s; (2) If t he credit or rat ifies t he pay ment t o t he t hird person; (3) If by t he credit or's conduct , t he debt or has been led t o believe t hat t he t hird person had aut horit y t o receive t he pay ment . (1163a) Art . 1242. Pay ment made in good fait h t o any person in possession of t he credit shall release t he debt or. (1164) Art . 1243. Pay ment made t o t he credit or by t he debt or aft er t he lat t er has been judicially ordered t o ret ain t he debt shall not be valid. (1165) Art . 1244. The debt or of a t hing cannot compel t he credit or t o receive a different one, alt hough t he lat t er may be of t he same value as, or more valuable t han t hat which is due. In obligat ions t o do or not t o do, an act or forbearance cannot be subst it ut ed by anot her act or forbearance against t he obligee's will. (1166a) Art . 1245. Dat ion in pay ment , whereby propert y is alienat ed t o t he credit or in sat isfact ion of a debt in money , shall be governed by t he law of sales. (n) Art . 1246. When t he obligat ion consist s in t he delivery of an indet erminat e or generic t hing, whose qualit y and circumst ances have not been st at ed, t he credit or cannot demand a t hing of superior qualit y . Neit her can t he debt or deliver a t hing of inferior qualit y . The purpose of t he obligat ion and ot her circumst ances shall be t aken int o considerat ion. (1167 a) Art . 1247 . Unless it is ot herwise st ipulat ed, t he ext rajudicial expenses required by t he pay ment shall be for t he account of t he debt or. Wit h regard t o judicial cost s, t he Rules of Court shall govern. (1168a) Art . 1248. Unless t here is an express st ipulat ion t o t hat effect , t he credit or cannot be compelled part ially t o receive t he prest at ions in which t he obligat ion consist s. Neit her may t he debt or be required t o make part ial pay ment s. However, when t he debt is in part liquidat ed and in part unliquidat ed, t he credit or may demand and t he debt or may effect t he pay ment of t he former wit hout wait ing for t he liquidat ion of t he lat t er. (1169a) Art . 1249. The pay ment of debt s in money shall be made in t he currency st ipulat ed, and if it is not possible t o deliver such currency , t hen in t he currency which is legal t ender in t he Philippines. The delivery of promissory not es pay able t o order, or bills of exchange or ot her mercant ile document s shall produce t he effect of pay ment only when t hey have been cashed, or when t hrough t he fault of t he credit or t hey have been impaired. In t he meant ime, t he act ion derived from t he original obligat ion shall be held in t he abey ance. (117 0) Art . 1250. In case an ext raordinary inflat ion or deflat ion of t he currency st ipulat ed should supervene, t he value of t he currency at t he t ime of t he est ablishment of t he obligat ion shall be t he basis of pay ment , unless t here is an agreement t o t he cont rary . (n)
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Art . 1251. Pay ment shall be made in t he place designat ed in t he obligat ion. There being no express st ipulat ion and if t he undert aking is t o deliver a det erminat e t hing, t he pay ment shall be made wherever t he t hing might be at t he moment t he obligat ion was const it ut ed. In any ot her case t he place of pay ment shall be t he domicile of t he debt or. If t he debt or changes his domicile in bad fait h or aft er he has incurred in delay , t he addit ional expenses shall be borne by him. These provisions are wit hout prejudice t o venue under t he Rules of Court . (117 1a) SUBSECTION 1. - Applicat ion of Pay ment s Art . 1252. He who has various debt s of t he same kind in favor of one and t he same credit or, may declare at t he t ime of making t he pay ment , t o which of t hem t he same must be applied. Unless t he part ies so st ipulat e, or when t he applicat ion of pay ment is made by t he part y for whose benefit t he t erm has been const it ut ed, applicat ion shall not be made as t o debt s which are not y et due. If t he debt or accept s from t he credit or a receipt in which an applicat ion of t he pay ment is made, t he former cannot complain of t he same, unless t here is a cause for invalidat ing t he cont ract . (117 2a) Art . 1253. If t he debt produces int erest , pay ment of t he principal shall not be deemed t o have been made unt il t he int erest s have been covered. (117 3) Art . 1254. When t he pay ment cannot be applied in accordance wit h t he preceding rules, or if applicat ion can not be inferred from ot her circumst ances, t he debt which is most onerous t o t he debt or, among t hose due, shall be deemed t o have been sat isfied. If t he debt s due are of t he same nat ure and burden, t he pay ment shall be applied t o all of t hem proport ionat ely . (117 4a) SUBSECTION 2. - Pay ment by Cession Art . 1255. The debt or may cede or assign his propert y t o his credit ors in pay ment of his debt s. This cession, unless t here is st ipulat ion t o t he cont rary , shall only release t he debt or from responsibilit y for t he net proceeds of t he t hing assigned. The agreement s which, on t he effect of t he cession, are made bet ween t he debt or and his credit ors shall be governed by special laws. (117 5a) SUBSECTION 3. - Tender of Pay ment and Consignat ion Art . 1256. If t he credit or t o whom t ender of pay ment has been made refuses wit hout just cause t o accept it , t he debt or shall be released from responsibilit y by t he consignat ion of t he t hing or sum due. Consignat ion alone shall produce t he same effect in t he following cases: (1) When t he credit or is absent or unknown, or does not appear at t he place of pay ment ; (2) When he is incapacit at ed t o receive t he pay ment at t he t ime it is due; (3) When, wit hout just cause, he refuses t o give a receipt ; (4) When t wo or more persons claim t he same right t o collect ; (5) When t he t it le of t he obligat ion has been lost . (117 6a) Art . 1257 . In order t hat t he consignat ion of t he t hing due may release t he obligor, it must first be announced t o t he persons int erest ed in t he fulfillment of t he obligat ion. The consignat ion shall be ineffect ual if it is not made st rict ly in consonance wit h t he provisions which regulat e pay ment . (117 7 ) Art . 1258. Consignat ion shall be made by deposit ing t he t hings due at t he disposal of judicial aut horit y , before whom t he t ender of pay ment shall be proved, in a proper case, and t he announcement of t he consignat ion in ot her cases. The consignat ion having been made, t he int erest ed part ies shall also be not ified t hereof. (117 8) Art . 1259. The expenses of consignat ion, when properly made, shall be charged against t he credit or. (117 8) Art . 1260. Once t he consignat ion has been duly made, t he debt or may ask t he judge t o order t he cancellat ion of t he obligat ion.
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Before t he credit or has accept ed t he consignat ion, or before a judicial declarat ion t hat t he consignat ion has been properly made, t he debt or may wit hdraw t he t hing or t he sum deposit ed, allowing t he obligat ion t o remain in force. (1180) Art . 1261. If, t he consignat ion having been made, t he credit or should aut horize t he debt or t o wit hdraw t he same, he shall lose every preference which he may have over t he t hing. The co-debt ors, guarant ors and suret ies shall be released. (1181a) SECTION 2. - Loss of t he Thing Due Art . 1262. An obligat ion which consist s in t he delivery of a det erminat e t hing shall be ext inguished if it should be lost or dest roy ed wit hout t he fault of t he debt or, and before he has incurred in delay . When by law or st ipulat ion, t he obligor is liable even for fort uit ous event s, t he loss of t he t hing does not ext inguish t he obligat ion, and he shall be responsible for damages. The same rule applies when t he nat ure of t he obligat ion requires t he assumpt ion of risk. (1182a) Art . 1263. In an obligat ion t o deliver a generic t hing, t he loss or dest ruct ion of any t hing of t he same kind does not ext inguish t he obligat ion. (n) Art . 1264. The court s shall det ermine whet her, under t he circumst ances, t he part ial loss of t he object of t he obligat ion is so import ant as t o ext inguish t he obligat ion. (n) Art . 1265. Whenever t he t hing is lost in t he possession of t he debt or, it shall be presumed t hat t he loss was due t o his fault , unless t here is proof t o t he cont rary , and wit hout prejudice t o t he provisions of art icle 1165. This presumpt ion does not apply in case of eart hquake, flood, st orm, or ot her nat ural calamit y . (1183a) Art . 1266. The debt or in obligat ions t o do shall also be released when t he prest at ion becomes legally or phy sically impossible wit hout t he fault of t he obligor. (1184a) Art . 1267 . When t he service has become so difficult as t o be manifest ly bey ond t he cont emplat ion of t he part ies, t he obligor may also be released t herefrom, in whole or in part . (n) Art . 1268. When t he debt of a t hing cert ain and det erminat e proceeds from a criminal offense, t he debt or shall not be exempt ed from t he pay ment of it s price, what ever may be t he cause for t he loss, unless t he t hing having been offered by him t o t he person who should receive it , t he lat t er refused wit hout just ificat ion t o accept it . (1185) Art . 1269. The obligat ion having been ext inguished by t he loss of t he t hing, t he credit or shall have all t he right s of act ion which t he debt or may have against t hird persons by reason of t he loss. (1186) SECTION 3. - Condonat ion or Remission of t he Debt Art . 127 0. Condonat ion or remission is essent ially grat uit ous, and requires t he accept ance by t he obligor. It may be made expressly or impliedly . One and t he ot her kind shall be subject t o t he rules which govern inofficious donat ions. Express condonat ion shall, furt hermore, comply wit h t he forms of donat ion. (1187 ) Art . 127 1. The delivery of a privat e document evidencing a credit , made volunt arily by t he credit or t o t he debt or, implies t he renunciat ion of t he act ion which t he former had against t he lat t er. If in order t o nullify t his waiver it should be claimed t o be inofficious, t he debt or and his heirs may uphold it by proving t hat t he delivery of t he document was made in virt ue of pay ment of t he debt . (1188) Art . 127 2. Whenever t he privat e document in which t he debt appears is found in t he possession of t he debt or, it shall be presumed t hat t he credit or delivered it volunt arily , unless t he cont rary is proved. (1189) Art . 127 3. The renunciat ion of t he principal debt shall ext inguish t he accessory obligat ions; but t he waiver of t he lat t er shall leave t he former in force. (1190) Art . 127 4. It is presumed t hat t he accessory obligat ion of pledge has been remit t ed when t he t hing pledged, aft er it s delivery t o t he credit or, is found in t he possession of t he debt or, or of a t hird person who owns t he t hing. (1191a) SECTION 4. - Confusion or Merger of Right s Art . 127 5. The obligat ion is ext inguished from t he t ime t he charact ers of credit or and debt or are merged in t he same person. (1192a) Art . 127 6. Merger which t akes place in t he person of t he principal debt or or credit or benefit s t he guarant ors. Confusion which t akes place in t he person of any of t he lat t er does not ext inguish t he obligat ion. (1193)
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Art . 127 7 . Confusion does not ext inguish a joint obligat ion except as regards t he share corresponding t o t he credit or or debt or in whom t he t wo charact ers concur. (1194) SECTION 5. - Compensat ion Art . 127 8. Compensat ion shall t ake place when t wo persons, in t heir own right , are credit ors and debt ors of each ot her. (1195) Art . 127 9. In order t hat compensat ion may be proper, it is necessary : (1) That each one of t he obligors be bound principally , and t hat he be at t he same t ime a principal credit or of t he ot her; (2) That bot h debt s consist in a sum of money , or if t he t hings due are consumable, t hey be of t he same kind, and also of t he same qualit y if t he lat t er has been st at ed; (3) That t he t wo debt s be due; (4) That t hey be liquidat ed and demandable; (5) That over neit her of t hem t here be any ret ent ion or cont roversy , commenced by t hird persons and communicat ed in due t ime t o t he debt or. (1196) Art . 1280. Not wit hst anding t he provisions of t he preceding art icle, t he guarant or may set up compensat ion as regards what t he credit or may owe t he principal debt or. (1197 ) Art . 1281. Compensat ion may be t ot al or part ial. When t he t wo debt s are of t he same amount , t here is a t ot al compensat ion. (n) Art . 1282. The part ies may agree upon t he compensat ion of debt s which are not y et due. (n) Art . 1283. If one of t he part ies t o a suit over an obligat ion has a claim for damages against t he ot her, t he former may set it off by proving his right t o said damages and t he amount t hereof. (n) Art . 1284. When one or bot h debt s are rescissible or voidable, t hey may be compensat ed against each ot her before t hey are judicially rescinded or avoided. (n) Art . 1285. The debt or who has consent ed t o t he assignment of right s made by a credit or in favor of a t hird person, cannot set up against t he assignee t he compensat ion which would pert ain t o him against t he assignor, unless t he assignor was not ified by t he debt or at t he t ime he gave his consent , t hat he reserved his right t o t he compensat ion. If t he credit or communicat ed t he cession t o him but t he debt or did not consent t heret o, t he lat t er may set up t he compensat ion of debt s previous t o t he cession, but not of subsequent ones. If t he assignment is made wit hout t he knowledge of t he debt or, he may set up t he compensat ion of all credit s prior t o t he same and also lat er ones unt il he had knowledge of t he assignment . (1198a) Art . 1286. Compensat ion t akes place by operat ion of law, even t hough t he debt s may be pay able at different places, but t here shall be an indemnit y for expenses of exchange or t ransport at ion t o t he place of pay ment . (1199a) Art . 1287 . Compensat ion shall not be proper when one of t he debt s arises from a deposit um or from t he obligat ions of a deposit ary or of a bailee in commodat um. Neit her can compensat ion be set up against a credit or who has a claim for support due by grat uit ous t it le, wit hout prejudice t o t he provisions of paragraph 2 of Art icle 301. (1200a) Art . 1288. Neit her shall t here be compensat ion if one of t he debt s consist s in civil liabilit y arising from a penal offense. (n) Art . 1289. If a person should have against him several debt s which are suscept ible of compensat ion, t he rules on t he applicat ion of pay ment s shall apply t o t he order of t he compensat ion. (1201) Art . 1290. When all t he requisit es ment ioned in Art icle 127 9 are present , compensat ion t akes effect by operat ion of law, and ext inguishes bot h debt s t o t he concurrent amount , even t hough t he credit ors and debt ors are not aware of t he compensat ion. (1202a) SECTION 6. - Novat ion Art . 1291. Obligat ions may be modified by : (1) Changing t heir object or principal condit ions;
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(2) Subst it ut ing t he person of t he debt or; (3) Subrogat ing a t hird person in t he right s of t he credit or. (1203) Art . 1292. In order t hat an obligat ion may be ext inguished by anot her which subst it ut e t he same, it is imperat ive t hat it be so declared in unequivocal t erms, or t hat t he old and t he new obligat ions be on every point incompat ible wit h each ot her. (1204) Art . 1293. Novat ion which consist s in subst it ut ing a new debt or in t he place of t he original one, may be made even wit hout t he knowledge or against t he will of t he lat t er, but not wit hout t he consent of t he credit or. Pay ment by t he new debt or gives him t he right s ment ioned in Art icles 1236 and 1237 . (1205a) Art . 1294. If t he subst it ut ion is wit hout t he knowledge or against t he will of t he debt or, t he new debt or's insolvency or non-fulfillment of t he obligat ions shall not give rise t o any liabilit y on t he part of t he original debt or. (n) Art . 1295. The insolvency of t he new debt or, who has been proposed by t he original debt or and accept ed by t he credit or, shall not revive t he act ion of t he lat t er against t he original obligor, except when said insolvency was already exist ing and of public knowledge, or known t o t he debt or, when t he delegat ed his debt . (1206a) Art . 1296. When t he principal obligat ion is ext inguished in consequence of a novat ion, accessory obligat ions may subsist only insofar as t hey may benefit t hird persons who did not give t heir consent . (1207 ) Art . 1297 . If t he new obligat ion is void, t he original one shall subsist , unless t he part ies int ended t hat t he former relat ion should be ext inguished in any event . (n) Art . 1298. The novat ion is void if t he original obligat ion was void, except when annulment may be claimed only by t he debt or or when rat ificat ion validat es act s which are voidable. (1208a) Art . 1299. If t he original obligat ion was subject t o a suspensive or resolut ory condit ion, t he new obligat ion shall be under t he same condit ion, unless it is ot herwise st ipulat ed. (n) Art . 1300. Subrogat ion of a t hird person in t he right s of t he credit or is eit her legal or convent ional. The former is not presumed, except in cases expressly ment ioned in t his Code; t he lat t er must be clearly est ablished in order t hat it may t ake effect . (1209a) Art . 1301. Convent ional subrogat ion of a t hird person requires t he consent of t he original part ies and of t he t hird person. (n) Art . 1302. It is presumed t hat t here is legal subrogat ion: (1) When a credit or pay s anot her credit or who is preferred, even wit hout t he debt or's knowledge; (2) When a t hird person, not int erest ed in t he obligat ion, pay s wit h t he express or t acit approval of t he debt or; (3) When, even wit hout t he knowledge of t he debt or, a person int erest ed in t he fulfillment of t he obligat ion pay s, wit hout prejudice t o t he effect s of confusion as t o t he lat t er's share. (1210a) Art . 1303. Subrogat ion t ransfers t o t he persons subrogat ed t he credit wit h all t he right s t heret o appert aining, eit her against t he debt or or against t hird person, be t hey guarant ors or possessors of mort gages, subject t o st ipulat ion in a convent ional subrogat ion. (1212a) Art . 1304. A credit or, t o whom part ial pay ment has been made, may exercise his right for t he remainder, and he shall be preferred t o t he person who has been subrogat ed in his place in virt ue of t he part ial pay ment of t he same credit . (1213) Tit le II. - CONTRACTS CHAPTER 1 GENERAL PROVISIONS Art . 1305. A cont ract is a meet ing of minds bet ween t wo persons whereby one binds himself, wit h respect t o t he ot her, t o give somet hing or t o render some service. (1254a) Art . 1306. The cont ract ing part ies may est ablish such st ipulat ions, clauses, t erms and condit ions as t hey may deem convenient , provided t hey are not cont rary t o law, morals, good cust oms, public order, or public policy . (1255a) Art . 1307 . Innominat e cont ract s shall be regulat ed by t he st ipulat ions of t he part ies, by t he provisions of Tit les I and II of t his Book, by t he rules governing t he most analogous nominat e cont ract s, and by t he cust oms of t he place. (n) Art . 1308. The cont ract must bind bot h cont ract ing part ies; it s validit y or compliance cannot be left t o t he will of one of t hem. (1256a)
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Art . 1309. The det erminat ion of t he performance may be left t o a t hird person, whose decision shall not be binding unt il it has been made known t o bot h cont ract ing part ies. (n) Art . 1310. The det erminat ion shall not be obligat ory if it is evident ly inequit able. In such case, t he court s shall decide what is equit able under t he circumst ances. (n) Art . 1311. Cont ract s t ake effect only bet ween t he part ies, t heir assigns and heirs, except in case where t he right s and obligat ions arising from t he cont ract are not t ransmissible by t heir nat ure, or by st ipulat ion or by provision of law. The heir is not liable bey ond t he value of t he propert y he received from t he decedent . If a cont ract should cont ain some st ipulat ion in favor of a t hird person, he may demand it s fulfillment provided he communicat ed his accept ance t o t he obligor before it s revocat ion. A mere incident al benefit or int erest of a person is not sufficient . The cont ract ing part ies must have clearly and deliberat ely conferred a favor upon a t hird person. (1257 a) Art . 1312. In cont ract s creat ing real right s, t hird persons who come int o possession of t he object of t he cont ract are bound t hereby , subject t o t he provisions of t he Mort gage Law and t he Land Regist rat ion Laws. (n) Art . 1313. Credit ors are prot ect ed in cases of cont ract s int ended t o defraud t hem. (n) Art . 1314. Any t hird person who induces anot her t o violat e his cont ract shall be liable for damages t o t he ot her cont ract ing part y . (n) Art . 1315. Cont ract s are perfect ed by mere consent , and from t hat moment t he part ies are bound not only t o t he fulfillment of what has been expressly st ipulat ed but also t o all t he consequences which, according t o t heir nat ure, may be in keeping wit h good fait h, usage and law. (1258) Art . 1316. Real cont ract s, such as deposit , pledge and Commodat um, are not perfect ed unt il t he delivery of t he object of t he obligat ion. (n) Art . 1317 . No one may cont ract in t he name of anot her wit hout being aut horized by t he lat t er, or unless he has by law a right t o represent him. A cont ract ent ered int o in t he name of anot her by one who has no aut horit y or legal represent at ion, or who has act ed bey ond his powers, shall be unenforceable, unless it is rat ified, expressly or impliedly , by t he person on whose behalf it has been execut ed, before it is revoked by t he ot her cont ract ing part y . (1259a) CHAPTER 2 ESSENTIAL REQUISITES OF CONTRACTS GENERAL PROVISIONS Art . 1318. There is no cont ract unless t he following requisit es concur: (1) Consent of t he cont ract ing part ies; (2) Object cert ain which is t he subject mat t er of t he cont ract ; (3) Cause of t he obligat ion which is est ablished. (1261) SECTION 1. - Consent Art . 1319. Consent is manifest ed by t he meet ing of t he offer and t he accept ance upon t he t hing and t he cause which are t o const it ut e t he cont ract . The offer must be cert ain and t he accept ance absolut e. A qualified accept ance const it ut es a count er-offer. Accept ance made by let t er or t elegram does not bind t he offerer except from t he t ime it came t o his knowledge. The cont ract , in such a case, is presumed t o have been ent ered int o in t he place where t he offer was made. (1262a) Art . 1320. An accept ance may be express or implied. (n) Art . 1321. The person making t he offer may fix t he t ime, place, and manner of accept ance, all of which must be complied wit h. (n) Art . 1322. An offer made t hrough an agent is accept ed from t he t ime accept ance is communicat ed t o him. (n) Art . 1323. An offer becomes ineffect ive upon t he deat h, civil int erdict ion, insanit y , or insolvency of eit her part y before accept ance is convey ed. (n) Art . 1324. When t he offerer has allowed t he offeree a cert ain period t o accept , t he offer may be wit hdrawn at any t ime before accept ance by communicat ing such wit hdrawal, except when t he opt ion is founded upon a considerat ion, as somet hing paid or promised. (n)
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Art . 1325. Unless it appears ot herwise, business advert isement s of t hings for sale are not definit e offers, but mere invit at ions t o make an offer. (n) Art . 1326. Advert isement s for bidders are simply invit at ions t o make proposals, and t he advert iser is not bound t o accept t he highest or lowest bidder, unless t he cont rary appears. (n) Art . 1327 . The following cannot give consent t o a cont ract : (1) Unemancipat ed minors; (2) Insane or dement ed persons, and deaf-mut es who do not know how t o writ e. (1263a) Art . 1328. Cont ract s ent ered int o during a lucid int erval are valid. Cont ract s agreed t o in a st at e of drunkenness or during a hy pnot ic spell are voidable. (n) Art . 1329. The incapacit y declared in Art icle 1327 is subject t o t he modificat ions det ermined by law, and is underst ood t o be wit hout prejudice t o special disqualificat ions est ablished in t he laws. (1264) Art . 1330. A cont ract where consent is given t hrough mist ake, violence, int imidat ion, undue influence, or fraud is voidable. (1265a) Art . 1331. In order t hat mist ake may invalidat e consent , it should refer t o t he subst ance of t he t hing which is t he object of t he cont ract , or t o t hose condit ions which have principally moved one or bot h part ies t o ent er int o t he cont ract . Mist ake as t o t he ident it y or qualificat ions of one of t he part ies will vit iat e consent only when such ident it y or qualificat ions have been t he principal cause of t he cont ract . A simple mist ake of account shall give rise t o it s correct ion. (1266a) Art . 1332. When one of t he part ies is unable t o read, or if t he cont ract is in a language not underst ood by him, and mist ake or fraud is alleged, t he person enforcing t he cont ract must show t hat t he t erms t hereof have been fully explained t o t he former. (n) Art . 1333. There is no mist ake if t he part y alleging it knew t he doubt , cont ingency or risk affect ing t he object of t he cont ract . (n) Art . 1334. Mut ual error as t o t he legal effect of an agreement when t he real purpose of t he part ies is frust rat ed, may vit iat e consent . (n) Art . 1335. There is violence when in order t o wrest consent , serious or irresist ible force is employ ed. There is int imidat ion when one of t he cont ract ing part ies is compelled by a reasonable and well-grounded fear of an imminent and grave evil upon his person or propert y , or upon t he person or propert y of his spouse, descendant s or ascendant s, t o give his consent . To det ermine t he degree of int imidat ion, t he age, sex and condit ion of t he person shall be borne in mind. A t hreat t o enforce one's claim t hrough compet ent aut horit y , if t he claim is just or legal, does not vit iat e consent . (1267 a) Art . 1336. Violence or int imidat ion shall annul t he obligat ion, alt hough it may have been employ ed by a t hird person who did not t ake part in t he cont ract . (1268) Art . 1337 . There is undue influence when a person t akes improper advant age of his power over t he will of anot her, depriving t he lat t er of a reasonable freedom of choice. The following circumst ances shall be considered: t he confident ial, family , spirit ual and ot her relat ions bet ween t he part ies, or t he fact t hat t he person alleged t o have been unduly influenced was suffering from ment al weakness, or was ignorant or in financial dist ress. (n) Art . 1338. There is fraud when, t hrough insidious words or machinat ions of one of t he cont ract ing part ies, t he ot her is induced t o ent er int o a cont ract which, wit hout t hem, he would not have agreed t o. (1269) Art . 1339. Failure t o disclose fact s, when t here is a dut y t o reveal t hem, as when t he part ies are bound by confident ial relat ions, const it ut es fraud. (n) Art . 1340. The usual exaggerat ions in t rade, when t he ot her part y had an opport unit y t o know t he fact s, are not in t hemselves fraudulent . (n) Art . 1341. A mere expression of an opinion does not signify fraud, unless made by an expert and t he ot her part y has relied on t he former's special knowledge. (n) Art . 1342. Misrepresent at ion by a t hird person does not vit iat e consent , unless such misrepresent at ion has creat ed subst ant ial mist ake and t he same is mut ual. (n)
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Art . 1343. Misrepresent at ion made in good fait h is not fraudulent but may const it ut e error. (n) Art . 1344. In order t hat fraud may make a cont ract voidable, it should be serious and should not have been employ ed by bot h cont ract ing part ies. Incident al fraud only obliges t he person employ ing it t o pay damages. (127 0) Art . 1345. Simulat ion of a cont ract may be absolut e or relat ive. The former t akes place when t he part ies do not int end t o be bound at all; t he lat t er, when t he part ies conceal t heir t rue agreement . (n) Art . 1346. An absolut ely simulat ed or fict it ious cont ract is void. A relat ive simulat ion, when it does not prejudice a t hird person and is not int ended for any purpose cont rary t o law, morals, good cust oms, public order or public policy binds t he part ies t o t heir real agreement . (n) SECTION 2. - Object of Cont ract s Art . 1347 . All t hings which are not out side t he commerce of men, including fut ure t hings, may be t he object of a cont ract . All right s which are not int ransmissible may also be t he object of cont ract s. No cont ract may be ent ered int o upon fut ure inherit ance except in cases expressly aut horized by law. All services which are not cont rary t o law, morals, good cust oms, public order or public policy may likewise be t he object of a cont ract . (127 1a) Art . 1348. Impossible t hings or services cannot be t he object of cont ract s. (127 2) Art . 1349. The object of every cont ract must be det erminat e as t o it s kind. The fact t hat t he quant it y is not det erminat e shall not be an obst acle t o t he exist ence of t he cont ract , provided it is possible t o det ermine t he same, wit hout t he need of a new cont ract bet ween t he part ies. (127 3) SECTION 3. - Cause of Cont ract s Art . 1350. In onerous cont ract s t he cause is underst ood t o be, for each cont ract ing part y , t he prest at ion or promise of a t hing or service by t he ot her; in remunerat ory ones, t he service or benefit which is remunerat ed; and in cont ract s of pure beneficence, t he mere liberalit y of t he benefact or. (127 4) Art . 1351. The part icular mot ives of t he part ies in ent ering int o a cont ract are different from t he cause t hereof. (n) Art . 1352. Cont ract s wit hout cause, or wit h unlawful cause, produce no effect what ever. The cause is unlawful if it is cont rary t o law, morals, good cust oms, public order or public policy . (127 5a) Art . 1353. The st at ement of a false cause in cont ract s shall render t hem void, if it should not be proved t hat t hey were founded upon anot her cause which is t rue and lawful. (127 6) Art . 1354. Alt hough t he cause is not st at ed in t he cont ract , it is presumed t hat it exist s and is lawful, unless t he debt or proves t he cont rary . (127 7 ) Art . 1355. Except in cases specified by law, lesion or inadequacy of cause shall not invalidat e a cont ract , unless t here has been fraud, mist ake or undue influence. (n) CHAPTER 3 FORM OF CONTRACTS Art . 1356. Cont ract s shall be obligat ory , in what ever form t hey may have been ent ered int o, provided all t he essent ial requisit es for t heir validit y are present . However, when t he law requires t hat a cont ract be in some form in order t hat it may be valid or enforceable, or t hat a cont ract be proved in a cert ain way , t hat requirement is absolut e and indispensable. In such cases, t he right of t he part ies st at ed in t he following art icle cannot be exercised. (127 8a) Art . 1357 . If t he law requires a document or ot her special form, as in t he act s and cont ract s enumerat ed in t he following art icle, t he cont ract ing part ies may compel each ot her t o observe t hat form, once t he cont ract has been perfect ed. This right may be exercised simult aneously wit h t he act ion upon t he cont ract . (127 9a) Art . 1358. The following must appear in a public document : (1) Act s and cont ract s which have for t heir object t he creat ion, t ransmission, modificat ion or ext inguishment of real right s over immovable propert y ; sales of real propert y or of an int erest t herein a governed by Art icles 1403, No. 2, and 1405; (2) The cession, repudiat ion or renunciat ion of heredit ary right s or of t hose of t he conjugal part nership of gains;
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(3) The power t o administ er propert y , or any ot her power which has for it s object an act appearing or which should appear in a public document , or should prejudice a t hird person; (4) The cession of act ions or right s proceeding from an act appearing in a public document . All ot her cont ract s where t he amount involved exceeds five hundred pesos must appear in writ ing, even a privat e one. But sales of goods, chat t els or t hings in act ion are governed by Art icles, 1403, No. 2 and 1405. (1280a) CHAPTER 4 REFORMATION OF INSTRUMENTS (n) Art . 1359. When, t here having been a meet ing of t he minds of t he part ies t o a cont ract , t heir t rue int ent ion is not expressed in t he inst rument purport ing t o embody t he agreement , by reason of mist ake, fraud, inequit able conduct or accident , one of t he part ies may ask for t he reformat ion of t he inst rument t o t he end t hat such t rue int ent ion may be expressed. If mist ake, fraud, inequit able conduct , or accident has prevent ed a meet ing of t he minds of t he part ies, t he proper remedy is not reformat ion of t he inst rument but annulment of t he cont ract . Art . 1360. The principles of t he general law on t he reformat ion of inst rument s are hereby adopt ed insofar as t hey are not in conflict wit h t he provisions of t his Code. Art . 1361. When a mut ual mist ake of t he part ies causes t he failure of t he inst rument t o disclose t heir real agreement , said inst rument may be reformed. Art . 1362. If one part y was mist aken and t he ot her act ed fraudulent ly or inequit ably in such a way t hat t he inst rument does not show t heir t rue int ent ion, t he former may ask for t he reformat ion of t he inst rument . Art . 1363. When one part y was mist aken and t he ot her knew or believed t hat t he inst rument did not st at e t heir real agreement , but concealed t hat fact from t he former, t he inst rument may be reformed. Art . 1364. When t hrough t he ignorance, lack of skill, negligence or bad fait h on t he part of t he person draft ing t he inst rument or of t he clerk or t y pist , t he inst rument does not express t he t rue int ent ion of t he part ies, t he court s may order t hat t he inst rument be reformed. Art . 1365. If t wo part ies agree upon t he mort gage or pledge of real or personal propert y , but t he inst rument st at es t hat t he propert y is sold absolut ely or wit h a right of repurchase, reformat ion of t he inst rument is proper. Art . 1366. There shall be no reformat ion in t he following cases: (1) Simple donat ions int er vivos wherein no condit ion is imposed; (2) Wills; (3) When t he real agreement is void. Art . 1367 . When one of t he part ies has brought an act ion t o enforce t he inst rument , he cannot subsequent ly ask for it s reformat ion. Art . 1368. Reformat ion may be ordered at t he inst ance of eit her part y or his successors in int erest , if t he mist ake was mut ual; ot herwise, upon pet it ion of t he injured part y , or his heirs and assigns. Art . 1369. The procedure for t he reformat ion of inst rument shall be governed by rules of court t o be promulgat ed by t he Supreme Court . CHAPTER 5 INTERPRETATION OF CONTRACTS Art . 137 0. If t he t erms of a cont ract are clear and leave no doubt upon t he int ent ion of t he cont ract ing part ies, t he lit eral meaning of it s st ipulat ions shall cont rol. If t he words appear t o be cont rary t o t he evident int ent ion of t he part ies, t he lat t er shall prevail over t he former. (1281) Art . 137 1. In order t o judge t he int ent ion of t he cont ract ing part ies, t heir cont emporaneous and subsequent act s shall be principally considered. (1282) Art . 137 2. However general t he t erms of a cont ract may be, t hey shall not be underst ood t o comprehend t hings t hat are dist inct and cases t hat are different from t hose upon which t he part ies int ended t o agree. (1283) Art . 137 3. If some st ipulat ion of any cont ract should admit of several meanings, it shall be underst ood as bearing t hat import which is most adequat e t o render it effect ual. (1284)
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Art . 137 4. The various st ipulat ions of a cont ract shall be int erpret ed t oget her, at t ribut ing t o t he doubt ful ones t hat sense which may result from all of t hem t aken joint ly . (1285) Art . 137 5. Words which may have different significat ions shall be underst ood in t hat which is most in keeping wit h t he nat ure and object of t he cont ract . (1286) Art . 137 6. The usage or cust om of t he place shall be borne in mind in t he int erpret at ion of t he ambiguit ies of a cont ract , and shall fill t he omission of st ipulat ions which are ordinarily est ablished. (1287 ) Art . 137 7 . The int erpret at ion of obscure words or st ipulat ions in a cont ract shall not favor t he part y who caused t he obscurit y . (1288) Art . 137 8. When it is absolut ely impossible t o set t le doubt s by t he rules est ablished in t he preceding art icles, and t he doubt s refer t o incident al circumst ances of a grat uit ous cont ract , t he least t ransmission of right s and int erest s shall prevail. If t he cont ract is onerous, t he doubt shall be set t led in favor of t he great est reciprocit y of int erest s. If t he doubt s are cast upon t he principal object of t he cont ract in such a way t hat it cannot be known what may have been t he int ent ion or will of t he part ies, t he cont ract shall be null and void. (1289) Art . 137 9. The principles of int erpret at ion st at ed in Rule 123 of t he Rules of Court shall likewise be observed in t he const ruct ion of cont ract s. (n) CHAPTER 6 RESCISSIBLE CONTRACTS Art . 1380. Cont ract s validly agreed upon may be rescinded in t he cases est ablished by law. (1290) Art . 1381. The following cont ract s are rescissible: (1) Those which are ent ered int o by guardians whenever t he wards whom t hey represent suffer lesion by more t han one-fourt h of t he value of t he t hings which are t he object t hereof; (2) Those agreed upon in represent at ion of absent ees, if t he lat t er suffer t he lesion st at ed in t he preceding number; (3) Those undert aken in fraud of credit ors when t he lat t er cannot in any ot her manner collect t he claims due t hem; (4) Those which refer t o t hings under lit igat ion if t hey have been ent ered int o by t he defendant wit hout t he knowledge and approval of t he lit igant s or of compet ent judicial aut horit y ; (5) All ot her cont ract s specially declared by law t o be subject t o rescission. (1291a) Art . 1382. Pay ment s made in a st at e of insolvency for obligat ions t o whose fulfillment t he debt or could not be compelled at t he t ime t hey were effect ed, are also rescissible. (1292) Art . 1383. The act ion for rescission is subsidiary ; it cannot be inst it ut ed except when t he part y suffering damage has no ot her legal means t o obt ain reparat ion for t he same. (1294) Art . 1384. Rescission shall be only t o t he ext ent necessary t o cover t he damages caused. (n) Art . 1385. Rescission creat es t he obligat ion t o ret urn t he t hings which were t he object of t he cont ract , t oget her wit h t heir fruit s, and t he price wit h it s int erest ; consequent ly , it can be carried out only when he who demands rescission can ret urn what ever he may be obliged t o rest ore. Neit her shall rescission t ake place when t he t hings which are t he object of t he cont ract are legally in t he possession of t hird persons who did not act in bad fait h. In t his case, indemnit y for damages may be demanded from t he person causing t he loss. (1295) Art . 1386. Rescission referred t o in Nos. 1 and 2 of Art icle 1381 shall not t ake place wit h respect t o cont ract s approved by t he court s. (1296a) Art . 1387 . All cont ract s by virt ue of which t he debt or alienat es propert y by grat uit ous t it le are presumed t o have been ent ered int o in fraud of credit ors, when t he donor did not reserve sufficient propert y t o pay all debt s cont ract ed before t he donat ion. Alienat ions by onerous t it le are also presumed fraudulent when made by persons against whom some judgment has been issued. The decision or at t achment need not refer t o t he propert y alienat ed, and need not have been obt ained by t he part y seeking t he rescission. In addit ion t o t hese presumpt ions, t he design t o defraud credit ors may be proved in any ot her manner recognized by t he law of evidence. (1297 a)
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Art . 1388. Whoever acquires in bad fait h t he t hings alienat ed in fraud of credit ors, shall indemnify t he lat t er for damages suffered by t hem on account of t he alienat ion, whenever, due t o any cause, it should be impossible for him t o ret urn t hem. If t here are t wo or more alienat ions, t he first acquirer shall be liable first , and so on successively . (1298a) Art . 1389. The act ion t o claim rescission must be commenced wit hin four y ears. For persons under guardianship and for absent ees, t he period of four y ears shall not begin unt il t he t erminat ion of t he former's incapacit y , or unt il t he domicile of t he lat t er is known. (1299) CHAPTER 7 VOIDABLE CONTRACTS Art . 1390. The following cont ract s are voidable or annullable, even t hough t here may have been no damage t o t he cont ract ing part ies: (1) Those where one of t he part ies is incapable of giving consent t o a cont ract ; (2) Those where t he consent is vit iat ed by mist ake, violence, int imidat ion, undue influence or fraud. These cont ract s are binding, unless t hey are annulled by a proper act ion in court . They are suscept ible of rat ificat ion. (n) Art . 1391. The act ion for annulment shall be brought wit hin four y ears. This period shall begin: In cases of int imidat ion, violence or undue influence, from t he t ime t he defect of t he consent ceases. In case of mist ake or fraud, from t he t ime of t he discovery of t he same. And when t he act ion refers t o cont ract s ent ered int o by minors or ot her incapacit at ed persons, from t he t ime t he guardianship ceases. (1301a) Art . 1392. Rat ificat ion ext inguishes t he act ion t o annul a voidable cont ract . (1309a) Art . 1393. Rat ificat ion may be effect ed expressly or t acit ly . It is underst ood t hat t here is a t acit rat ificat ion if, wit h knowledge of t he reason which renders t he cont ract voidable and such reason having ceased, t he person who has a right t o invoke it should execut e an act which necessarily implies an int ent ion t o waive his right . (1311a) Art . 1394. Rat ificat ion may be effect ed by t he guardian of t he incapacit at ed person. (n) Art . 1395. Rat ificat ion does not require t he conformit y of t he cont ract ing part y who has no right t o bring t he act ion for annulment . (1312) Art . 1396. Rat ificat ion cleanses t he cont ract from all it s defect s from t he moment it was const it ut ed. (1313) Art . 1397 . The act ion for t he annulment of cont ract s may be inst it ut ed by all who are t hereby obliged principally or subsidiarily . However, persons who are capable cannot allege t he incapacit y of t hose wit h whom t hey cont ract ed; nor can t hose who exert ed int imidat ion, violence, or undue influence, or employ ed fraud, or caused mist ake base t heir act ion upon t hese flaws of t he cont ract . (1302a) Art . 1398. An obligat ion having been annulled, t he cont ract ing part ies shall rest ore t o each ot her t he t hings which have been t he subject mat t er of t he cont ract , wit h t heir fruit s, and t he price wit h it s int erest , except in cases provided by law. In obligat ions t o render service, t he value t hereof shall be t he basis for damages. (1303a) Art . 1399. When t he defect of t he cont ract consist s in t he incapacit y of one of t he part ies, t he incapacit at ed person is not obliged t o make any rest it ut ion except insofar as he has been benefit ed by t he t hing or price received by him. (1304) Art . 1400. Whenever t he person obliged by t he decree of annulment t o ret urn t he t hing can not do so because it has been lost t hrough his fault , he shall ret urn t he fruit s received and t he value of t he t hing at t he t ime of t he loss, wit h int erest from t he same dat e. (1307 a) Art . 1401. The act ion for annulment of cont ract s shall be ext inguished when t he t hing which is t he object t hereof is lost t hrough t he fraud or fault of t he person who has a right t o inst it ut e t he proceedings. If t he right of act ion is based upon t he incapacit y of any one of t he cont ract ing part ies, t he loss of t he t hing shall not be an obst acle t o t he success of t he act ion, unless said loss t ook place t hrough t he fraud or fault of t he plaint iff. (1314a)
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Art . 1402. As long as one of t he cont ract ing part ies does not rest ore what in virt ue of t he decree of annulment he is bound t o ret urn, t he ot her cannot be compelled t o comply wit h what is incumbent upon him. (1308) CHAPTER 8 UNENFORCEABLE CONTRACTS (n) Art . 1403. The following cont ract s are unenforceable, unless t hey are rat ified: (1) Those ent ered int o in t he name of anot her person by one who has been given no aut horit y or legal represent at ion, or who has act ed bey ond his powers; (2) Those t hat do not comply wit h t he St at ut e of Frauds as set fort h in t his number. In t he following cases an agreement hereaft er made shall be unenforceable by act ion, unless t he same, or some not e or memorandum, t hereof, be in writ ing, and subscribed by t he part y charged, or by his agent ; evidence, t herefore, of t he agreement cannot be received wit hout t he writ ing, or a secondary evidence of it s cont ent s: (a) An agreement t hat by it s t erms is not t o be performed wit hin a y ear from t he making t hereof; (b) A special promise t o answer for t he debt , default , or miscarriage of anot her; (c) An agreement made in considerat ion of marriage, ot her t han a mut ual promise t o marry ; (d) An agreement for t he sale of goods, chat t els or t hings in act ion, at a price not less t han five hundred pesos, unless t he buy er accept and receive part of such goods and chat t els, or t he evidences, or some of t hem, of such t hings in act ion or pay at t he t ime some part of t he purchase money ; but when a sale is made by auct ion and ent ry is made by t he auct ioneer in his sales book, at t he t ime of t he sale, of t he amount and kind of propert y sold, t erms of sale, price, names of t he purchasers and person on whose account t he sale is made, it is a sufficient memorandum; (e) An agreement of t he leasing for a longer period t han one y ear, or for t he sale of real propert y or of an int erest t herein; (f) A represent at ion as t o t he credit of a t hird person. (3) Those where bot h part ies are incapable of giving consent t o a cont ract . Art . 1404. Unaut horized cont ract s are governed by Art icle 1317 and t he principles of agency in Tit le X of t his Book. Art . 1405. Cont ract s infringing t he St at ut e of Frauds, referred t o in No. 2 of Art icle 1403, are rat ified by t he failure t o object t o t he present at ion of oral evidence t o prove t he same, or by t he accept ance of benefit under t hem. Art . 1406. When a cont ract is enforceable under t he St at ut e of Frauds, and a public document is necessary for it s regist rat ion in t he Regist ry of Deeds, t he part ies may avail t hemselves of t he right under Art icle 1357 . Art . 1407 . In a cont ract where bot h part ies are incapable of giving consent , express or implied rat ificat ion by t he parent , or guardian, as t he case may be, of one of t he cont ract ing part ies shall give t he cont ract t he same effect as if only one of t hem were incapacit at ed. If rat ificat ion is made by t he parent s or guardians, as t he case may be, of bot h cont ract ing part ies, t he cont ract shall be validat ed from t he incept ion. Art . 1408. Unenforceable cont ract s cannot be assailed by t hird persons. CHAPTER 9 VOID AND INEXISTENT CONTRACTS Art . 1409. The following cont ract s are inexist ent and void from t he beginning: (1) Those whose cause, object or purpose is cont rary t o law, morals, good cust oms, public order or public policy ; (2) Those which are absolut ely simulat ed or fict it ious; (3) Those whose cause or object did not exist at t he t ime of t he t ransact ion; (4) Those whose object is out side t he commerce of men; (5) Those which cont emplat e an impossible service; (6) Those where t he int ent ion of t he part ies relat ive t o t he principal object of t he cont ract cannot be ascert ained; (7 ) Those expressly prohibit ed or declared void by law.
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These cont ract s cannot be rat ified. Neit her can t he right t o set up t he defense of illegalit y be waived. Art . 1410. The act ion or defense for t he declarat ion of t he inexist ence of a cont ract does not prescribe. Art . 1411. When t he nullit y proceeds from t he illegalit y of t he cause or object of t he cont ract , and t he act const it ut es a criminal offense, bot h part ies being in pari delict o, t hey shall have no act ion against each ot her, and bot h shall be prosecut ed. Moreover, t he provisions of t he Penal Code relat ive t o t he disposal of effect s or inst rument s of a crime shall be applicable t o t he t hings or t he price of t he cont ract . This rule shall be applicable when only one of t he part ies is guilt y ; but t he innocent one may claim what he has given, and shall not be bound t o comply wit h his promise. (1305) Art . 1412. If t he act in which t he unlawful or forbidden cause consist s does not const it ut e a criminal offense, t he following rules shall be observed: (1) When t he fault is on t he part of bot h cont ract ing part ies, neit her may recover what he has given by virt ue of t he cont ract , or demand t he performance of t he ot her's undert aking; (2) When only one of t he cont ract ing part ies is at fault , he cannot recover what he has given by reason of t he cont ract , or ask for t he fulfillment of what has been promised him. The ot her, who is not at fault , may demand t he ret urn of what he has given wit hout any obligat ion t o comply his promise. (1306) Art . 1413. Int erest paid in excess of t he int erest allowed by t he usury laws may be recovered by t he debt or, wit h int erest t hereon from t he dat e of t he pay ment . Art . 1414. When money is paid or propert y delivered for an illegal purpose, t he cont ract may be repudiat ed by one of t he part ies before t he purpose has been accomplished, or before any damage has been caused t o a t hird person. In such case, t he court s may , if t he public int erest will t hus be subserved, allow t he part y repudiat ing t he cont ract t o recover t he money or propert y . Art . 1415. Where one of t he part ies t o an illegal cont ract is incapable of giving consent , t he court s may , if t he int erest of just ice so demands allow recovery of money or propert y delivered by t he incapacit at ed person. Art . 1416. When t he agreement is not illegal per se but is merely prohibit ed, and t he prohibit ion by t he law is designat ed for t he prot ect ion of t he plaint iff, he may , if public policy is t hereby enhanced, recover what he has paid or delivered. Art . 1417 . When t he price of any art icle or commodit y is det ermined by st at ut e, or by aut horit y of law, any person pay ing any amount in excess of t he maximum price allowed may recover such excess. Art . 1418. When t he law fixes, or aut horizes t he fixing of t he maximum number of hours of labor, and a cont ract is ent ered int o whereby a laborer undert akes t o work longer t han t he maximum t hus fixed, he may demand addit ional compensat ion for service rendered bey ond t he t ime limit . Art . 1419. When t he law set s, or aut horizes t he set t ing of a minimum wage for laborers, and a cont ract is agreed upon by which a laborer accept s a lower wage, he shall be ent it led t o recover t he deficiency . Art . 1420. In case of a divisible cont ract , if t he illegal t erms can be separat ed from t he legal ones, t he lat t er may be enforced. Art . 1421. The defense of illegalit y of cont ract is not available t o t hird persons whose int erest s are not direct ly affect ed. Art . 1422. A cont ract which is t he direct result of a previous illegal cont ract , is also void and inexist ent . Tit le III. - NATURAL OBLIGATIONS Art . 1423. Obligat ions are civil or nat ural. Civil obligat ions give a right of act ion t o compel t heir performance. Nat ural obligat ions, not being based on posit ive law but on equit y and nat ural law, do not grant a right of act ion t o enforce t heir performance, but aft er volunt ary fulfillment by t he obligor, t hey aut horize t he ret ent ion of what has been delivered or rendered by reason t hereof. Some nat ural obligat ions are set fort h in t he following art icles. Art . 1424. When a right t o sue upon a civil obligat ion has lapsed by ext inct ive prescript ion, t he obligor who volunt arily performs t he cont ract cannot recover what he has delivered or t he value of t he service he has rendered. Art . 1425. When wit hout t he knowledge or against t he will of t he debt or, a t hird person pay s a debt which t he obligor is not legally bound t o pay because t he act ion t hereon has prescribed, but t he debt or lat er volunt arily reimburses t he t hird person, t he obligor cannot recover what he has paid. Art . 1426. When a minor bet ween eight een and t went y -one y ears of age who has ent ered int o a cont ract wit hout t he consent of t he parent or guardian, aft er t he annulment of t he cont ract volunt arily ret urns t he whole t hing or price received, not wit hst anding t he fact t he he has not been benefit ed t hereby , t here is no right t o demand t he t hing or
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price t hus ret urned. Art . 1427 . When a minor bet ween eight een and t went y -one y ears of age, who has ent ered int o a cont ract wit hout t he consent of t he parent or guardian, volunt arily pay s a sum of money or delivers a fungible t hing in fulfillment of t he obligat ion, t here shall be no right t o recover t he same from t he obligee who has spent or consumed it in good fait h. (1160A) Art . 1428. When, aft er an act ion t o enforce a civil obligat ion has failed t he defendant volunt arily performs t he obligat ion, he cannot demand t he ret urn of what he has delivered or t he pay ment of t he value of t he service he has rendered. Art . 1429. When a t est at e or int est at e heir volunt arily pay s a debt of t he decedent exceeding t he value of t he propert y which he received by will or by t he law of int est acy from t he est at e of t he deceased, t he pay ment is valid and cannot be rescinded by t he pay er. Art . 1430. When a will is declared void because it has not been execut ed in accordance wit h t he formalit ies required by law, but one of t he int est at e heirs, aft er t he set t lement of t he debt s of t he deceased, pay s a legacy in compliance wit h a clause in t he defect ive will, t he pay ment is effect ive and irrevocable. Tit le IV. - ESTOPPEL (n) Art . 1431. Through est oppel an admission or represent at ion is rendered conclusive upon t he person making it , and cannot be denied or disproved as against t he person rely ing t hereon. Art . 1432. The principles of est oppel are hereby adopt ed insofar as t hey are not in conflict wit h t he provisions of t his Code, t he Code of Commerce, t he Rules of Court and special laws. Art . 1433. Est oppel may be in pais or by deed. Art . 1434. When a person who is not t he owner of a t hing sells or alienat es and delivers it , and lat er t he seller or grant or acquires t it le t heret o, such t it le passes by operat ion of law t o t he buy er or grant ee. Art . 1435. If a person in represent at ion of anot her sells or alienat es a t hing, t he former cannot subsequent ly set up his own t it le as against t he buy er or grant ee. Art . 1436. A lessee or a bailee is est opped from assert ing t it le t o t he t hing leased or received, as against t he lessor or bailor. Art . 1437 . When in a cont ract bet ween t hird persons concerning immovable propert y , one of t hem is misled by a person wit h respect t o t he ownership or real right over t he real est at e, t he lat t er is precluded from assert ing his legal t it le or int erest t herein, provided all t hese requisit es are present : (1) There must be fraudulent represent at ion or wrongful concealment of fact s known t o t he part y est opped; (2) The part y precluded must int end t hat t he ot her should act upon t he fact s as misrepresent ed; (3) The part y misled must have been unaware of t he t rue fact s; and (4) The part y defrauded must have act ed in accordance wit h t he misrepresent at ion. Art . 1438. One who has allowed anot her t o assume apparent ownership of personal propert y for t he purpose of making any t ransfer of it , cannot , if he received t he sum for which a pledge has been const it ut ed, set up his own t it le t o defeat t he pledge of t he propert y , made by t he ot her t o a pledgee who received t he same in good fait h and for value. Art . 1439. Est oppel is effect ive only as bet ween t he part ies t heret o or t heir successors in int erest . Tit le V. - TRUSTS (n) CHAPTER 1 GENERAL PROVISIONS Art . 1440. A person who est ablishes a t rust is called t he t rust or; one in whom confidence is reposed as regards propert y for t he benefit of anot her person is known as t he t rust ee; and t he person for whose benefit t he t rust has been creat ed is referred t o as t he beneficiary . Art . 1441. Trust s are eit her express or implied. Express t rust s are creat ed by t he int ent ion of t he t rust or or of t he part ies. Implied t rust s come int o being by operat ion of law. Art . 1442. The principles of t he general law of t rust s, insofar as t hey are not in conflict wit h t his Code, t he Code of Commerce, t he Rules of Court and special laws are hereby adopt ed.
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CHAPTER 2 EXPRESS TRUSTS Art . 1443. No express t rust s concerning an immovable or any int erest t herein may be proved by parol evidence. Art . 1444. No part icular words are required for t he creat ion of an express t rust , it being sufficient t hat a t rust is clearly int ended. Art . 1445. No t rust shall fail because t he t rust ee appoint ed declines t he designat ion, unless t he cont rary should appear in t he inst rument const it ut ing t he t rust . Art . 1446. Accept ance by t he beneficiary is necessary . Nevert heless, if t he t rust imposes no onerous condit ion upon t he beneficiary , his accept ance shall be presumed, if t here is no proof t o t he cont rary . CHAPTER 3 IMPLIED TRUSTS Art . 1447 . The enumerat ion of t he following cases of implied t rust does not exclude ot hers est ablished by t he general law of t rust , but t he limit at ion laid down in Art icle 1442 shall be applicable. Art . 1448. There is an implied t rust when propert y is sold, and t he legal est at e is grant ed t o one part y but t he price is paid by anot her for t he purpose of having t he beneficial int erest of t he propert y . The former is t he t rust ee, while t he lat t er is t he beneficiary . However, if t he person t o whom t he t it le is convey ed is a child, legit imat e or illegit imat e, of t he one pay ing t he price of t he sale, no t rust is implied by law, it being disput ably presumed t hat t here is a gift in favor of t he child. Art . 1449. There is also an implied t rust when a donat ion is made t o a person but it appears t hat alt hough t he legal est at e is t ransmit t ed t o t he donee, he nevert heless is eit her t o have no beneficial int erest or only a part t hereof. Art . 1450. If t he price of a sale of propert y is loaned or paid by one person for t he benefit of anot her and t he convey ance is made t o t he lender or pay or t o secure t he pay ment of t he debt , a t rust arises by operat ion of law in favor of t he person t o whom t he money is loaned or for whom it s is paid. The lat t er may redeem t he propert y and compel a convey ance t hereof t o him. Art . 1451. When land passes by succession t o any person and he causes t he legal t it le t o be put in t he name of anot her, a t rust is est ablished by implicat ion of law for t he benefit of t he t rue owner. Art . 1452. If t wo or more persons agree t o purchase propert y and by common consent t he legal t it le is t aken in t he name of one of t hem for t he benefit of all, a t rust is creat ed by force of law in favor of t he ot hers in proport ion t o t he int erest of each. Art . 1453. When propert y is convey ed t o a person in reliance upon his declared int ent ion t o hold it for, or t ransfer it t o anot her or t he grant or, t here is an implied t rust in favor of t he person whose benefit is cont emplat ed. Art . 1454. If an absolut e convey ance of propert y is made in order t o secure t he performance of an obligat ion of t he grant or t oward t he grant ee, a t rust by virt ue of law is est ablished. If t he fulfillment of t he obligat ion is offered by t he grant or when it becomes due, he may demand t he reconvey ance of t he propert y t o him. Art . 1455. When any t rust ee, guardian or ot her person holding a fiduciary relat ionship uses t rust funds for t he purchase of propert y and causes t he convey ance t o be made t o him or t o a t hird person, a t rust is est ablished by operat ion of law in favor of t he person t o whom t he funds belong. Art . 1456. If propert y is acquired t hrough mist ake or fraud, t he person obt aining it is, by force of law, considered a t rust ee of an implied t rust for t he benefit of t he person from whom t he propert y comes. Art . 1457 . An implied t rust may be proved by oral evidence. Tit le VI. - SALES CHAPTER 1 NATURE AND FORM OF THE CONTRACT Art . 1458. By t he cont ract of sale one of t he cont ract ing part ies obligat es himself t o t ransfer t he ownership and t o deliver a det erminat e t hing, and t he ot her t o pay t herefor a price cert ain in money or it s equivalent . A cont ract of sale may be absolut e or condit ional. (1445a) Art . 1459. The t hing must be licit and t he vendor must have a right t o t ransfer t he ownership t hereof at t he t ime it is delivered. (n) Art . 1460. A t hing is det erminat e when it is part icularly designat ed or phy sical segregat ed from all ot her of t he same
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class. The requisit e t hat a t hing be det erminat e is sat isfied if at t he t ime t he cont ract is ent ered int o, t he t hing is capable of being made det erminat e wit hout t he necessit y of a new or furt her agreement bet ween t he part ies. (n) Art . 1461. Things having a pot ent ial exist ence may be t he object of t he cont ract of sale. The efficacy of t he sale of a mere hope or expect ancy is deemed subject t o t he condit ion t hat t he t hing will come int o exist ence. The sale of a vain hope or expect ancy is void. (n) Art . 1462. The goods which form t he subject of a cont ract of sale may be eit her exist ing goods, owned or possessed by t he seller, or goods t o be manufact ured, raised, or acquired by t he seller aft er t he perfect ion of t he cont ract of sale, in t his Tit le called "future goods ." There may be a cont ract of sale of goods, whose acquisit ion by t he seller depends upon a cont ingency which may or may not happen. (n) Art . 1463. The sole owner of a t hing may sell an undivided int erest t herein. (n) Art . 1464. In t he case of fungible goods, t here may be a sale of an undivided share of a specific mass, t hough t he seller purport s t o sell and t he buy er t o buy a definit e number, weight or measure of t he goods in t he mass, and t hough t he number, weight or measure of t he goods in t he mass is undet ermined. By such a sale t he buy er becomes owner in common of such a share of t he mass as t he number, weight or measure bought bears t o t he number, weight or measure of t he mass. If t he mass cont ains less t han t he number, weight or measure bought , t he buy er becomes t he owner of t he whole mass and t he seller is bound t o make good t he deficiency from goods of t he same kind and qualit y , unless a cont rary int ent appears. (n) Art . 1465. Things subject t o a resolut ory condit ion may be t he object of t he cont ract of sale. (n) Art . 1466. In const ruing a cont ract cont aining provisions charact erist ic of bot h t he cont ract of sale and of t he cont ract of agency t o sell, t he essent ial clauses of t he whole inst rument shall be considered. (n) Art . 1467 . A cont ract for t he delivery at a cert ain price of an art icle which t he vendor in t he ordinary course of his business manufact ures or procures for t he general market , whet her t he same is on hand at t he t ime or not , is a cont ract of sale, but if t he goods are t o be manufact ured specially for t he cust omer and upon his special order, and not for t he general market , it is a cont ract for a piece of work. (n) Art . 1468. If t he considerat ion of t he cont ract consist s part ly in money , and part ly in anot her t hing, t he t ransact ion shall be charact erized by t he manifest int ent ion of t he part ies. If such int ent ion does not clearly appear, it shall be considered a bart er if t he value of t he t hing given as a part of t he considerat ion exceeds t he amount of t he money or it s equivalent ; ot herwise, it is a sale. (1446a) Art . 1469. In order t hat t he price may be considered cert ain, it shall be sufficient t hat it be so wit h reference t o anot her t hing cert ain, or t hat t he det erminat ion t hereof be left t o t he judgment of a special person or persons. Should such person or persons be unable or unwilling t o fix it , t he cont ract shall be inefficacious, unless t he part ies subsequent ly agree upon t he price. If t he t hird person or persons act ed in bad fait h or by mist ake, t he court s may fix t he price. Where such t hird person or persons are prevent ed from fixing t he price or t erms by fault of t he seller or t he buy er, t he part y not in fault may have such remedies against t he part y in fault as are allowed t he seller or t he buy er, as t he case may be. (1447 a) Art . 147 0. Gross inadequacy of price does not affect a cont ract of sale, except as it may indicat e a defect in t he consent , or t hat t he part ies really int ended a donat ion or some ot her act or cont ract . (n) Art . 147 1. If t he price is simulat ed, t he sale is void, but t he act may be shown t o have been in realit y a donat ion, or some ot her act or cont ract . (n) Art . 147 2. The price of securit ies, grain, liquids, and ot her t hings shall also be considered cert ain, when t he price fixed is t hat which t he t hing sold would have on a definit e day , or in a part icular exchange or market , or when an amount is fixed above or below t he price on such day , or in such exchange or market , provided said amount be cert ain. (1448) Art . 147 3. The fixing of t he price can never be left t o t he discret ion of one of t he cont ract ing part ies. However, if t he price fixed by one of t he part ies is accept ed by t he ot her, t he sale is perfect ed. (1449a) Art . 147 4. Where t he price cannot be det ermined in accordance wit h t he preceding art icles, or in any ot her manner, t he cont ract is inefficacious. However, if t he t hing or any part t hereof has been delivered t o and appropriat ed by t he buy er he must pay a reasonable price t herefor. What is a reasonable price is a quest ion of fact dependent on t he circumst ances of each part icular case. (n)
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Art . 147 5. The cont ract of sale is perfect ed at t he moment t here is a meet ing of minds upon t he t hing which is t he object of t he cont ract and upon t he price. From t hat moment , t he part ies may reciprocally demand performance, subject t o t he provisions of t he law governing t he form of cont ract s. (1450a) Art . 147 6. In t he case of a sale by auct ion: (1) Where goods are put up for sale by auct ion in lot s, each lot is t he subject of a separat e cont ract of sale. (2) A sale by auct ion is perfect ed when t he auct ioneer announces it s perfect ion by t he fall of t he hammer, or in ot her cust omary manner. Unt il such announcement is made, any bidder may ret ract his bid; and t he auct ioneer may wit hdraw t he goods from t he sale unless t he auct ion has been announced t o be wit hout reserve. (3) A right t o bid may be reserved expressly by or on behalf of t he seller, unless ot herwise provided by law or by st ipulat ion. (4) Where not ice has not been given t hat a sale by auct ion is subject t o a right t o bid on behalf of t he seller, it shall not be lawful for t he seller t o bid himself or t o employ or induce any person t o bid at such sale on his behalf or for t he auct ioneer, t o employ or induce any person t o bid at such sale on behalf of t he seller or knowingly t o t ake any bid from t he seller or any person employ ed by him. Any sale cont ravening t his rule may be t reat ed as fraudulent by t he buy er. (n) Art . 147 7 . The ownership of t he t hing sold shall be t ransferred t o t he vendee upon t he act ual or const ruct ive delivery t hereof. (n) Art . 147 8. The part ies may st ipulat e t hat ownership in t he t hing shall not pass t o t he purchaser unt il he has fully paid t he price. (n) Art . 147 9. A promise t o buy and sell a det erminat e t hing for a price cert ain is reciprocally demandable. An accept ed unilat eral promise t o buy or t o sell a det erminat e t hing for a price cert ain is binding upon t he promissor if t he promise is support ed by a considerat ion dist inct from t he price. (1451a) Art . 1480. Any injury t o or benefit from t he t hing sold, aft er t he cont ract has been perfect ed, from t he moment of t he perfect ion of t he cont ract t o t he t ime of delivery , shall be governed by Art icles 1163 t o 1165, and 1262. This rule shall apply t o t he sale of fungible t hings, made independent ly and for a single price, or wit hout considerat ion of t heir weight , number, or measure. Should fungible t hings be sold for a price fixed according t o weight , number, or measure, t he risk shall not be imput ed t o t he vendee unt il t hey have been weighed, count ed, or measured and delivered, unless t he lat t er has incurred in delay . (1452a) Art . 1481. In t he cont ract of sale of goods by descript ion or by sample, t he cont ract may be rescinded if t he bulk of t he goods delivered do not correspond wit h t he descript ion or t he sample, and if t he cont ract be by sample as well as descript ion, it is not sufficient t hat t he bulk of goods correspond wit h t he sample if t hey do not also correspond wit h t he descript ion. The buy er shall have a reasonable opport unit y of comparing t he bulk wit h t he descript ion or t he sample. (n) Art . 1482. Whenever earnest money is given in a cont ract of sale, it shall be considered as part of t he price and as proof of t he perfect ion of t he cont ract . (1454a) Art . 1483. Subject t o t he provisions of t he St at ut e of Frauds and of any ot her applicable st at ut e, a cont ract of sale may be made in writ ing, or by word of mout h, or part ly in writ ing and part ly by word of mout h, or may be inferred from t he conduct of t he part ies. (n) Art . 1484. In a cont ract of sale of personal propert y t he price of which is pay able in inst allment s, t he vendor may exercise any of t he following remedies: (1) Exact fulfillment of t he obligat ion, should t he vendee fail t o pay ; (2) Cancel t he sale, should t he vendee's failure t o pay cover t wo or more inst allment s; (3) Foreclose t he chat t el mort gage on t he t hing sold, if one has been const it ut ed, should t he vendee's failure t o pay cover t wo or more inst allment s. In t his case, he shall have no furt her act ion against t he purchaser t o recover any unpaid balance of t he price. Any agreement t o t he cont rary shall be void. (1454-A-a) Art . 1485. The preceding art icle shall be applied t o cont ract s purport ing t o be leases of personal propert y wit h opt ion t o buy , when t he lessor has deprived t he lessee of t he possession or enjoy ment of t he t hing. (1454-A-a) Art . 1486. In t he case referred t o in t wo preceding art icles, a st ipulat ion t hat t he inst allment s or rent s paid shall not be ret urned t o t he vendee or lessee shall be valid insofar as t he same may not be unconscionable under t he
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circumst ances. (n) Art . 1487 . The expenses for t he execut ion and regist rat ion of t he sale shall be borne by t he vendor, unless t here is a st ipulat ion t o t he cont rary . (1455a) Art . 1488. The expropriat ion of propert y for public use is governed by special laws. (1456) CHAPTER 2 CAPACITY TO BUY OR SELL Art . 1489. All persons who are aut horized in t his Code t o obligat e t hemselves, may ent er int o a cont ract of sale, saving t he modificat ions cont ained in t he following art icles. Where necessaries are t hose sold and delivered t o a minor or ot her person wit hout capacit y t o act , he must pay a reasonable price t herefor. Necessaries are t hose referred t o in Art icle 290. (1457 a) Art . 1490. The husband and t he wife cannot sell propert y t o each ot her, except : (1) When a separat ion of propert y was agreed upon in t he marriage set t lement s; or (2) When t here has been a judicial separat ion or propert y under Art icle 191. (1458a) Art . 1491. The following persons cannot acquire by purchase, even at a public or judicial auct ion, eit her in person or t hrough t he mediat ion of anot her: (1) The guardian, t he propert y of t he person or persons who may be under his guardianship; (2) Agent s, t he propert y whose administ rat ion or sale may have been ent rust ed t o t hem, unless t he consent of t he principal has been given; (3) Execut ors and administ rat ors, t he propert y of t he est at e under administ rat ion; (4) Public officers and employ ees, t he propert y of t he St at e or of any subdivision t hereof, or of any government owned or cont rolled corporat ion, or inst it ut ion, t he administ rat ion of which has been int rust ed t o t hem; t his provision shall apply t o judges and government expert s who, in any manner what soever, t ake part in t he sale; (5) Just ices, judges, prosecut ing at t orney s, clerks of superior and inferior court s, and ot her officers and employ ees connect ed wit h t he administ rat ion of just ice, t he propert y and right s in lit igat ion or levied upon an execut ion before t he court wit hin whose jurisdict ion or t errit ory t hey exercise t heir respect ive funct ions; t his prohibit ion includes t he act of acquiring by assignment and shall apply t o lawy ers, wit h respect t o t he propert y and right s which may be t he object of any lit igat ion in which t hey may t ake part by virt ue of t heir profession. (6) Any ot hers specially disqualified by law. (1459a) Art . 1492. The prohibit ions in t he t wo preceding art icles are applicable t o sales in legal redempt ion, compromises and renunciat ions. (n) CHAPTER 3 EFFECTS OF THE CONTRACT WHEN THE THING SOLD HAS BEEN LOST Art . 1493. If at t he t ime t he cont ract of sale is perfect ed, t he t hing which is t he object of t he cont ract has been ent irely lost , t he cont ract shall be wit hout any effect . But if t he t hing should have been lost in part only , t he vendee may choose bet ween wit hdrawing from t he cont ract and demanding t he remaining part , pay ing it s price in proport ion t o t he t ot al sum agreed upon. (1460a) Art . 1494. Where t he part ies purport a sale of specific goods, and t he goods wit hout t he knowledge of t he seller have perished in part or have wholly or in a mat erial part so det eriorat ed in qualit y as t o be subst ant ially changed in charact er, t he buy er may at his opt ion t reat t he sale: (1) As avoided; or (2) As valid in all of t he exist ing goods or in so much t hereof as have not det eriorat ed, and as binding t he buy er t o pay t he agreed price for t he goods in which t he ownership will pass, if t he sale was divisible. (n) CHAPTER 4 OBLIGATIONS OF THE VENDOR SECTION 1. - General Provisions
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Art . 1495. The vendor is bound t o t ransfer t he ownership of and deliver, as well as warrant t he t hing which is t he object of t he sale. (1461a) Art . 1496. The ownership of t he t hing sold is acquired by t he vendee from t he moment it is delivered t o him in any of t he way s specified in Art icles 1497 t o 1501, or in any ot her manner signify ing an agreement t hat t he possession is t ransferred from t he vendor t o t he vendee. (n) SECTION 2. - Delivery of t he Thing Sold Art . 1497 . The t hing sold shall be underst ood as delivered, when it is placed in t he cont rol and possession of t he vendee. (1462a) Art . 1498. When t he sale is made t hrough a public inst rument , t he execut ion t hereof shall be equivalent t o t he delivery of t he t hing which is t he object of t he cont ract , if from t he deed t he cont rary does not appear or cannot clearly be inferred. Wit h regard t o movable propert y , it s delivery may also be made by t he delivery of t he key s of t he place or deposit ory where it is st ored or kept . (1463a) Art . 1499. The delivery of movable propert y may likewise be made by t he mere consent or agreement of t he cont ract ing part ies, if t he t hing sold cannot be t ransferred t o t he possession of t he vendee at t he t ime of t he sale, or if t he lat t er already had it in his possession for any ot her reason. (1463a) Art . 1500. There may also be t radit ion constitutum possessorium. (n) Art . 1501. Wit h respect t o incorporeal propert y , t he provisions of t he first paragraph of art icle 1498 shall govern. In any ot her case wherein said provisions are not applicable, t he placing of t he t it les of ownership in t he possession of t he vendee or t he use by t he vendee of his right s, wit h t he vendor's consent , shall be underst ood as a delivery . (1464) Art . 1502. When goods are delivered t o t he buy er "on sale or return" t o give t he buy er an opt ion t o ret urn t he goods inst ead of pay ing t he price, t he ownership passes t o t he buy er of delivery , but he may revest t he ownership in t he seller by ret urning or t endering t he goods wit hin t he t ime fixed in t he cont ract , or, if no t ime has been fixed, wit hin a reasonable t ime. (n) When goods are delivered t o t he buy er on approval or on t rial or on sat isfact ion, or ot her similar t erms, t he ownership t herein passes t o t he buy er: (1) When he signifies his approval or accept ance t o t he seller or does any ot her act adopt ing t he t ransact ion; (2) If he does not signify his approval or accept ance t o t he seller, but ret ains t he goods wit hout giving not ice of reject ion, t hen if a t ime has been fixed for t he ret urn of t he goods, on t he expirat ion of such t ime, and, if no t ime has been fixed, on t he expirat ion of a reasonable t ime. What is a reasonable t ime is a quest ion of fact . (n) Art . 1503. When t here is a cont ract of sale of specific goods, t he seller may , by t he t erms of t he cont ract , reserve t he right of possession or ownership in t he goods unt il cert ain condit ions have been fulfilled. The right of possession or ownership may be t hus reserved not wit hst anding t he delivery of t he goods t o t he buy er or t o a carrier or ot her bailee for t he purpose of t ransmission t o t he buy er. Where goods are shipped, and by t he bill of lading t he goods are deliverable t o t he seller or his agent , or t o t he order of t he seller or of his agent , t he seller t hereby reserves t he ownership in t he goods. But , if except for t he form of t he bill of lading, t he ownership would have passed t o t he buy er on shipment of t he goods, t he seller's propert y in t he goods shall be deemed t o be only for t he purpose of securing performance by t he buy er of his obligat ions under t he cont ract . Where goods are shipped, and by t he bill of lading t he goods are deliverable t o order of t he buy er or of his agent , but possession of t he bill of lading is ret ained by t he seller or his agent , t he seller t hereby reserves a right t o t he possession of t he goods as against t he buy er. Where t he seller of goods draws on t he buy er for t he price and t ransmit s t he bill of exchange and bill of lading t oget her t o t he buy er t o secure accept ance or pay ment of t he bill of exchange, t he buy er is bound t o ret urn t he bill of lading if he does not honor t he bill of exchange, and if he wrongfully ret ains t he bill of lading he acquires no added right t hereby . If, however, t he bill of lading provides t hat t he goods are deliverable t o t he buy er or t o t he order of t he buy er, or is indorsed in blank, or t o t he buy er by t he consignee named t herein, one who purchases in good fait h, for value, t he bill of lading, or goods from t he buy er will obt ain t he ownership in t he goods, alt hough t he bill of exchange has not been honored, provided t hat such purchaser has received delivery of t he bill of lading indorsed by t he consignee named t herein, or of t he goods, wit hout not ice of t he fact s making t he t ransfer wrongful. (n) Art . 1504. Unless ot herwise agreed, t he goods remain at t he seller's risk unt il t he ownership t herein is t ransferred t o t he buy er, but when t he ownership t herein is t ransferred t o t he buy er t he goods are at t he buy er's risk whet her act ual delivery has been made or not , except t hat : (1) Where delivery of t he goods has been made t o t he buy er or t o a bailee for t he buy er, in pursuance of t he
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cont ract and t he ownership in t he goods has been ret ained by t he seller merely t o secure performance by t he buy er of his obligat ions under t he cont ract , t he goods are at t he buy er's risk from t he t ime of such delivery ; (2) Where act ual delivery has been delay ed t hrough t he fault of eit her t he buy er or seller t he goods are at t he risk of t he part y in fault . (n) Art . 1505. Subject t o t he provisions of t his Tit le, where goods are sold by a person who is not t he owner t hereof, and who does not sell t hem under aut horit y or wit h t he consent of t he owner, t he buy er acquires no bet t er t it le t o t he goods t han t he seller had, unless t he owner of t he goods is by his conduct precluded from deny ing t he seller's aut horit y t o sell. Not hing in t his Tit le, however, shall affect : (1) The provisions of any fact ors' act , recording laws, or any ot her provision of law enabling t he apparent owner of goods t o dispose of t hem as if he were t he t rue owner t hereof; (2) The validit y of any cont ract of sale under st at ut ory power of sale or under t he order of a court of compet ent jurisdict ion; (3) Purchases made in a merchant 's st ore, or in fairs, or market s, in accordance wit h t he Code of Commerce and special laws. (n) Art . 1506. Where t he seller of goods has a voidable t it le t heret o, but his t it le has not been avoided at t he t ime of t he sale, t he buy er acquires a good t it le t o t he goods, provided he buy s t hem in good fait h, for value, and wit hout not ice of t he seller's defect of t it le. (n) Art . 1507 . A document of t it le in which it is st at ed t hat t he goods referred t o t herein will be delivered t o t he bearer, or t o t he order of any person named in such document is a negot iable document of t it le. (n) Art . 1508. A negot iable document of t it le may be negot iat ed by delivery : (1) Where by t he t erms of t he document t he carrier, warehouseman or ot her bailee issuing t he same undert akes t o deliver t he goods t o t he bearer; or (2) Where by t he t erms of t he document t he carrier, warehouseman or ot her bailee issuing t he same undert akes t o deliver t he goods t o t he order of a specified person, and such person or a subsequent endorsee of t he document has indorsed it in blank or t o t he bearer. Where by t he t erms of a negot iable document of t it le t he goods are deliverable t o bearer or where a negot iable document of t it le has been indorsed in blank or t o bearer, any holder may indorse t he same t o himself or t o any specified person, and in such case t he document shall t hereaft er be negot iat ed only by t he endorsement of such endorsee. (n) Art . 1509. A negot iable document of t it le may be negot iat ed by t he endorsement of t he person t o whose order t he goods are by t he t erms of t he document deliverable. Such endorsement may be in blank, t o bearer or t o a specified person. If indorsed t o a specified person, it may be again negot iat ed by t he endorsement of such person in blank, t o bearer or t o anot her specified person. Subsequent negot iat ions may be made in like manner. (n) Art . 1510. If a document of t it le which cont ains an undert aking by a carrier, warehouseman or ot her bailee t o deliver t he goods t o bearer, t o a specified person or order of a specified person or which cont ains words of like import , has placed upon it t he words "not negotiable," "non-negotiable" or t he like, such document may nevert heless be negot iat ed by t he holder and is a negot iable document of t it le wit hin t he meaning of t his Tit le. But not hing in t his Tit le cont ained shall be const rued as limit ing or defining t he effect upon t he obligat ions of t he carrier, warehouseman, or ot her bailee issuing a document of t it le or placing t hereon t he words "not negotiable," "non-negotiable," or t he like. (n) Art . 1511. A document of t it le which is not in such form t hat it can be negot iat ed by delivery may be t ransferred by t he holder by delivery t o a purchaser or donee. A non-negot iable document cannot be negot iat ed and t he endorsement of such a document gives t he t ransferee no addit ional right . (n) Art . 1512. A negot iable document of t it le may be negot iat ed: (1) By t he owner t herefor; or (2) By any person t o whom t he possession or cust ody of t he document has been ent rust ed by t he owner, if, by t he t erms of t he document t he bailee issuing t he document undert akes t o deliver t he goods t o t he order of t he person t o whom t he possession or cust ody of t he document has been ent rust ed, or if at t he t ime of such ent rust ing t he document is in such form t hat it may be negot iat ed by delivery . (n) Art . 1513. A person t o whom a negot iable document of t it le has been duly negot iat ed acquires t hereby : (1) Such t it le t o t he goods as t he person negot iat ing t he document t o him had or had abilit y t o convey t o a purchaser in good fait h for value and also such t it le t o t he goods as t he person t o whose order t he goods were t o be delivered by t he t erms of t he document had or had abilit y t o convey t o a purchaser in good fait h for value; and
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(2) The direct obligat ion of t he bailee issuing t he document t o hold possession of t he goods for him according t o t he t erms of t he document as fully as if such bailee had cont ract ed direct ly wit h him. (n) Art . 1514. A person t o whom a document of t it le has been t ransferred, but not negot iat ed, acquires t hereby , as against t he t ransferor, t he t it le t o t he goods, subject t o t he t erms of any agreement wit h t he t ransferor. If t he document is non-negot iable, such person also acquires t he right t o not ify t he bailee who issued t he document of t he t ransfer t hereof, and t hereby t o acquire t he direct obligat ion of such bailee t o hold possession of t he goods for him according t o t he t erms of t he document . Prior t o t he not ificat ion t o such bailee by t he t ransferor or t ransferee of a non-negot iable document of t it le, t he t it le of t he t ransferee t o t he goods and t he right t o acquire t he obligat ion of such bailee may be defeat ed by t he levy of an at t achment of execut ion upon t he goods by a credit or of t he t ransferor, or by a not ificat ion t o such bailee by t he t ransferor or a subsequent purchaser from t he t ransfer of a subsequent sale of t he goods by t he t ransferor. (n) Art . 1515. Where a negot iable document of t it le is t ransferred for value by delivery , and t he endorsement of t he t ransferor is essent ial for negot iat ion, t he t ransferee acquires a right against t he t ransferor t o compel him t o endorse t he document unless a cont rary int ent ion appears. The negot iat ion shall t ake effect as of t he t ime when t he endorsement is act ually made. (n) Art . 1516. A person who for value negot iat es or t ransfers a document of t it le by endorsement or delivery , including one who assigns for value a claim secured by a document of t it le unless a cont rary int ent ion appears, warrant s: (1) That t he document is genuine; (2) That he has a legal right t o negot iat e or t ransfer it ; (3) That he has knowledge of no fact which would impair t he validit y or wort h of t he document ; and (4) That he has a right t o t ransfer t he t it le t o t he goods and t hat t he goods are merchant able or fit for a part icular purpose, whenever such warrant ies would have been implied if t he cont ract of t he part ies had been t o t ransfer wit hout a document of t it le t he goods represent ed t hereby . (n) Art . 1517 . The endorsement of a document of t it le shall not make t he endorser liable for any failure on t he part of t he bailee who issued t he document or previous endorsers t hereof t o fulfill t heir respect ive obligat ions. (n) Art . 1518. The validit y of t he negot iat ion of a negot iable document of t it le is not impaired by t he fact t hat t he negot iat ion was a breach of dut y on t he part of t he person making t he negot iat ion, or by t he fact t hat t he owner of t he document was deprived of t he possession of t he same by loss, t heft , fraud, accident , mist ake, duress, or conversion, if t he person t o whom t he document was negot iat ed or a person t o whom t he document was subsequent ly negot iat ed paid value t herefor in good fait h wit hout not ice of t he breach of dut y , or loss, t heft , fraud, accident , mist ake, duress or conversion. (n) Art . 1519. If goods are delivered t o a bailee by t he owner or by a person whose act in convey ing t he t it le t o t hem t o a purchaser in good fait h for value would bind t he owner and a negot iable document of t it le is issued for t hem t hey cannot t hereaft er, while in possession of such bailee, be at t ached by garnishment or ot herwise or be levied under an execut ion unless t he document be first surrendered t o t he bailee or it s negot iat ion enjoined. The bailee shall in no case be compelled t o deliver up t he act ual possession of t he goods unt il t he document is surrendered t o him or impounded by t he court . (n) Art . 1520. A credit or whose debt or is t he owner of a negot iable document of t it le shall be ent it led t o such aid from court s of appropriat e jurisdict ion by injunct ion and ot herwise in at t aching such document or in sat isfy ing t he claim by means t hereof as is allowed at law or in equit y in regard t o propert y which cannot readily be at t ached or levied upon by ordinary legal process. (n) Art . 1521. Whet her it is for t he buy er t o t ake possession of t he goods or of t he seller t o send t hem t o t he buy er is a quest ion depending in each case on t he cont ract , express or implied, bet ween t he part ies. Apart from any such cont ract , express or implied, or usage of t rade t o t he cont rary , t he place of delivery is t he seller's place of business if he has one, and if not his residence; but in case of a cont ract of sale of specific goods, which t o t he knowledge of t he part ies when t he cont ract or t he sale was made were in some ot her place, t hen t hat place is t he place of delivery . Where by a cont ract of sale t he seller is bound t o send t he goods t o t he buy er, but no t ime for sending t hem is fixed, t he seller is bound t o send t hem wit hin a reasonable t ime. Where t he goods at t he t ime of sale are in t he possession of a t hird person, t he seller has not fulfilled his obligat ion t o deliver t o t he buy er unless and unt il such t hird person acknowledges t o t he buy er t hat he holds t he goods on t he buy er's behalf. Demand or t ender of delivery may be t reat ed as ineffect ual unless made at a reasonable hour. What is a reasonable hour is a quest ion of fact . Unless ot herwise agreed, t he expenses of and incident al t o put t ing t he goods int o a deliverable st at e must be borne by t he seller. (n)
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Art . 1522. Where t he seller delivers t o t he buy er a quant it y of goods less t han he cont ract ed t o sell, t he buy er may reject t hem, but if t he buy er accept s or ret ains t he goods so delivered, knowing t hat t he seller is not going t o perform t he cont ract in full, he must pay for t hem at t he cont ract rat e. If, however, t he buy er has used or disposed of t he goods delivered before he knows t hat t he seller is not going t o perform his cont ract in full, t he buy er shall not be liable for more t han t he fair value t o him of t he goods so received. Where t he seller delivers t o t he buy er a quant it y of goods larger t han he cont ract ed t o sell, t he buy er may accept t he goods included in t he cont ract and reject t he rest . If t he buy er accept s t he wh ole of t he goods so delivered he must pay for t hem at t he cont ract rat e. Where t he seller delivers t o t he buy er t he goods he cont ract ed t o sell mixed wit h goods of a different descript ion not included in t he cont ract , t he buy er may accept t he goods which are in accordance wit h t he cont ract and reject t he rest . In t he preceding t wo paragraphs, if t he subject mat t er is indivisible, t he buy er may reject t he whole of t he goods. The provisions of t his art icle are subject t o any usage of t rade, special agreement , or course of dealing bet ween t he part ies. (n) Art . 1523. Where, in pursuance of a cont ract of sale, t he seller is aut horized or required t o send t he goods t o t he buy er, delivery of t he goods t o a carrier, whet her named by t he buy er or not , for t he purpose of t ransmission t o t he buy er is deemed t o be a delivery of t he goods t o t he buy er, except in t he case provided for in Art icle 1503, first , second and t hird paragraphs, or unless a cont rary int ent appears. Unless ot herwise aut horized by t he buy er, t he seller must make such cont ract wit h t he carrier on behalf of t he buy er as may be reasonable, having regard t o t he nat ure of t he goods and t he ot her circumst ances of t he case. If t he seller omit so t o do, and t he goods are lost or damaged in course of t ransit , t he buy er may decline t o t reat t he delivery t o t he carrier as a delivery t o himself, or may hold t he seller responsible in damages. Unless ot herwise agreed, where goods are sent by t he seller t o t he buy er under circumst ances in which t he seller knows or ought t o know t hat it is usual t o insure, t he seller must give such not ice t o t he buy er as may enable him t o insure t hem during t heir t ransit , and, if t he seller fails t o do so, t he goods shall be deemed t o be at his risk during such t ransit . (n) Art . 1524. The vendor shall not be bound t o deliver t he t hing sold, if t he vendee has not paid him t he price, or if no period for t he pay ment has been fixed in t he cont ract . (1466) Art . 1525. The seller of goods is deemed t o be an unpaid seller wit hin t he meaning of t his Tit le: (1) When t he whole of t he price has not been paid or t endered; (2) When a bill of exchange or ot her negot iable inst rument has been received as condit ional pay ment , and t he condit ion on which it was received has been broken by reason of t he dishonor of t he inst rument , t he insolvency of t he buy er, or ot herwise. In Art icles 1525 t o 1535 t he t erm "seller" includes an agent of t he seller t o whom t he bill of lading has been indorsed, or a consignor or agent who has himself paid, or is direct ly responsible for t he price, or any ot her person who is in t he posit ion of a seller. (n) Art . 1526. Subject t o t he provisions of t his Tit le, not wit hst anding t hat t he ownership in t he goods may have passed t o t he buy er, t he unpaid seller of goods, as such, has: (1) A lien on t he goods or right t o ret ain t hem for t he price while he is in possession of t hem; (2) In case of t he insolvency of t he buy er, a right of st opping t he goods in t ransit u aft er he has part ed wit h t he possession of t hem; (3) A right of resale as limit ed by t his Tit le; (4) A right t o rescind t he sale as likewise limit ed by t his Tit le. Where t he ownership in t he goods has not passed t o t he buy er, t he unpaid seller has, in addit ion t o his ot her remedies a right of wit hholding delivery similar t o and coext ensive wit h his right s of lien and st oppage in t ransit u where t he ownership has passed t o t he buy er. (n) Art . 1527 . Subject t o t he provisions of t his Tit le, t he unpaid seller of goods who is in possession of t hem is ent it led t o ret ain possession of t hem unt il pay ment or t ender of t he price in t he following cases, namely : (1) Where t he goods have been sold wit hout any st ipulat ion as t o credit ; (2) Where t he goods have been sold on credit , but t he t erm of credit has expired; (3) Where t he buy er becomes insolvent . The seller may exercise his right of lien not wit hst anding t hat he is in possession of t he goods as agent or bailee for t he
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buy er. (n) Art . 1528. Where an unpaid seller has made part delivery of t he goods, he may exercise his right of lien on t he remainder, unless such part delivery has been made under such circumst ances as t o show an int ent t o waive t he lien or right of ret ent ion. (n) Art . 1529. The unpaid seller of goods loses his lien t hereon: (1) When he delivers t he goods t o a carrier or ot her bailee for t he purpose of t ransmission t o t he buy er wit hout reserving t he ownership in t he goods or t he right t o t he possession t hereof; (2) When t he buy er or his agent lawfully obt ains possession of t he goods; (3) By waiver t hereof. The unpaid seller of goods, having a lien t hereon, does not lose his lien by reason only t hat he has obt ained judgment or decree for t he price of t he goods. (n) Art . 1530. Subject t o t he provisions of t his Tit le, when t he buy er of goods is or becomes insolvent , t he unpaid seller who has part ed wit h t he possession of t he goods has t he right of st opping t hem in t ransit u, t hat is t o say , he may resume possession of t he goods at any t ime while t hey are in t ransit , and he will t hen become ent it led t o t he same right s in regard t o t he goods as he would have had if he had never part ed wit h t he possession. (n) Art . 1531. Goods are in t ransit wit hin t he meaning of t he preceding art icle: (1) From t he t ime when t hey are delivered t o a carrier by land, wat er, or air, or ot her bailee for t he purpose of t ransmission t o t he buy er, unt il t he buy er, or his agent in t hat behalf, t akes delivery of t hem from such carrier or ot her bailee; (2) If t he goods are reject ed by t he buy er, and t he carrier or ot her bailee cont inues in possession of t hem, even if t he seller has refused t o receive t hem back. Goods are no longer in t ransit wit hin t he meaning of t he preceding art icle: (1) If t he buy er, or his agent in t hat behalf, obt ains delivery of t he goods before t heir arrival at t he appoint ed dest inat ion; (2) If, aft er t he arrival of t he goods at t he appoint ed dest inat ion, t he carrier or ot her bailee acknowledges t o t he buy er or his agent t hat he holds t he goods on his behalf and cont inues in possession of t hem as bailee for t he buy er or his agent ; and it is immat erial t hat furt her dest inat ion for t he goods may have been indicat ed by t he buy er; (3) If t he carrier or ot her bailee wrongfully refuses t o deliver t he goods t o t he buy er or his agent in t hat behalf. If t he goods are delivered t o a ship, freight t rain, t ruck, or airplane chart ered by t he buy er, it is a quest ion depending on t he circumst ances of t he part icular case, whet her t hey are in t he possession of t he carrier as such or as agent of t he buy er. If part delivery of t he goods has been made t o t he buy er, or his agent in t hat behalf, t he remainder of t he goods may be st opped in t ransit u, unless such part delivery has been under such circumst ances as t o show an agreement wit h t he buy er t o give up possession of t he whole of t he goods. (n) Art . 1532. The unpaid seller may exercise his right of st oppage in t ransit u eit her by obt aining act ual possession of t he goods or by giving not ice of his claim t o t he carrier or ot her bailee in whose possession t he goods are. Such not ice may be given eit her t o t he person in act ual possession of t he goods or t o his principal. In t he lat t er case t he not ice, t o be effect ual, must be given at such t ime and under such circumst ances t hat t he principal, by t he exercise of reasonable diligence, may prevent a delivery t o t he buy er. When not ice of st oppage in t ransit u is given by t he seller t o t he carrier, or ot her bailee in possession of t he goods, he must redeliver t he goods t o, or according t o t he direct ions of, t he seller. The expenses of such delivery must be borne by t he seller. If, however, a negot iable document of t it le represent ing t he goods has been issued by t he carrier or ot her bailee, he shall not obliged t o deliver or just ified in delivering t he goods t o t he seller unless such document is first surrendered for cancellat ion. (n) Art . 1533. Where t he goods are of perishable nat ure, or where t he seller expressly reserves t he right of resale in case t he buy er should make default , or where t he buy er has been in default in t he pay ment of t he price for an unreasonable t ime, an unpaid seller having a right of lien or having st opped t he goods in t ransit u may resell t he goods. He shall not t hereaft er be liable t o t he original buy er upon t he cont ract of sale or for any profit made by such resale, but may recover from t he buy er damages for any loss occasioned by t he breach of t he cont ract of sale. Where a resale is made, as aut horized in t his art icle, t he buy er acquires a good t it le as against t he original buy er. It is not essent ial t o t he validit y of resale t hat not ice of an int ent ion t o resell t he goods be given by t he seller t o t he
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original buy er. But where t he right t o resell is not based on t he perishable nat ure of t he goods or upon an express provision of t he cont ract of sale, t he giving or failure t o give such not ice shall be relevant in any issue involving t he quest ion whet her t he buy er had been in default for an unreasonable t ime before t he resale was made. It is not essent ial t o t he validit y of a resale t hat not ice of t he t ime and place of such resale should be given by t he seller t o t he original buy er. The seller is bound t o exercise reasonable care and judgment in making a resale, and subject t o t his requirement may make a resale eit her by public or privat e sale. He cannot , however, direct ly or indirect ly buy t he goods. (n) Art . 1534. An unpaid seller having t he right of lien or having st opped t he goods in t ransit u, may rescind t he t ransfer of t it le and resume t he ownership in t he goods, where he expressly reserved t he right t o do so in case t he buy er should make default , or where t he buy er has been in default in t he pay ment of t he price for an unreasonable t ime. The seller shall not t hereaft er be liable t o t he buy er upon t he cont ract of sale, but may recover from t he buy er damages for any loss occasioned by t he breach of t he cont ract . The t ransfer of t it le shall not be held t o have been rescinded by an unpaid seller unt il he has manifest ed by not ice t o t he buy er or by some ot her overt act an int ent ion t o rescind. It is not necessary t hat such overt act should be communicat ed t o t he buy er, but t he giving or failure t o give not ice t o t he buy er of t he int ent ion t o rescind shall be relevant in any issue involving t he quest ion whet her t he buy er had been in default for an unreasonable t ime before t he right of rescission was assert ed. (n) Art . 1535. Subject t o t he provisions of t his Tit le, t he unpaid seller's right of lien or st oppage in t ransit u is not affect ed by any sale, or ot her disposit ion of t he goods which t he buy er may have made, unless t he seller has assent ed t heret o. If, however, a negot iable document of t it le has been issued for goods, no seller's lien or right of st oppage in t ransit u shall defeat t he right of any purchaser for value in good fait h t o whom such document has been negot iat ed, whet her such negot iat ion be prior or subsequent t o t he not ificat ion t o t he carrier, or ot her bailee who issued such document , of t he seller's claim t o a lien or right of st oppage in t ransit u. (n) Art . 1536. The vendor is not bound t o deliver t he t hing sold in case t he vendee should lose t he right t o make use of t he t erms as provided in Art icle 1198. (1467 a) Art . 1537 . The vendor is bound t o deliver t he t hing sold and it s accessions and accessories in t he condit ion in which t hey were upon t he perfect ion of t he cont ract . All t he fruit s shall pert ain t o t he vendee from t he day on which t he cont ract was perfect ed. (1468a) Art . 1538. In case of loss, det eriorat ion or improvement of t he t hing before it s delivery , t he rules in Art icle 1189 shall be observed, t he vendor being considered t he debt or. (n) Art . 1539. The obligat ion t o deliver t he t hing sold includes t hat of placing in t he cont rol of t he vendee all t hat is ment ioned in t he cont ract , in conformit y wit h t he following rules: If t he sale of real est at e should be made wit h a st at ement of it s area, at t he rat e of a cert ain price for a unit of measure or number, t he ven dor shall be obliged t o deliver t o t he vendee, if t he lat t er should demand it , all t hat may have been st at ed in t he cont ract ; but , should t his be not possible, t he vendee may choose bet ween a proport ional reduct ion of t he price and t he rescission of t he cont ract , provided t hat , in t he lat t er case, t he lack in t he area be not less t han onet ent h of t hat st at ed. The same shall be done, even when t he area is t he same, if any part of t he immovable is not of t he qualit y specified in t he cont ract . The rescission, in t his case, shall only t ake place at t he will of t he vendee, when t he inferior value of t he t hing sold exceeds one-t ent h of t he price agreed upon. Nevert heless, if t he vendee would not have bought t he immovable had he known of it s smaller area of inferior qualit y , he may rescind t he sale. (1469a) Art . 1540. If, in t he case of t he preceding art icle, t here is a great er area or number in t he immovable t han t hat st at ed in t he cont ract , t he vendee may accept t he area included in t he cont ract and reject t he rest . If he accept s t he whole area, he must pay for t he same at t he cont ract rat e. (147 0a) Art . 1541. The provisions of t he t wo preceding art icles shall apply t o judicial sales. (n) Art . 1542. In t he sale of real est at e, made for a lump sum and not at t he rat e of a cert ain sum for a unit of measure or number, t here shall be no increase or decrease of t he price, alt hough t here be a great er or less area or number t han t hat st at ed in t he cont ract . The same rule shall be applied when t wo or more immovables as sold for a single price; but if, besides ment ioning t he boundaries, which is indispensable in every convey ance of real est at e, it s area or number should be designat ed in t he cont ract , t he vendor shall be bound t o deliver all t hat is included wit hin said boundaries, even when it exceeds t he area or number specified in t he cont ract ; and, should he not be able t o do so, he shall suffer a reduct ion in t he price, in
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proport ion t o what is lacking in t he area or number, unless t he cont ract is rescinded because t he vendee does not accede t o t he failure t o deliver what has been st ipulat ed. (147 1) Art . 1543. The act ions arising from Art icles 1539 and 1542 shall prescribe in six mont hs, count ed from t he day of delivery . (147 2a) Art . 1544. If t he same t hing should have been sold t o different vendees, t he ownership shall be t ransferred t o t he person who may have first t aken possession t hereof in good fait h, if it should be movable propert y . Should it be immovable propert y , t he ownership shall belong t o t he person acquiring it who in good fait h first recorded it in t he Regist ry of Propert y . Should t here be no inscript ion, t he ownership shall pert ain t o t he person who in good fait h was first in t he possession; and, in t he absence t hereof, t o t he person who present s t he oldest t it le, provided t here is good fait h. (147 3) SECTION 3. - Condit ions and Warrant ies Art . 1545. Where t he obligat ion of eit her part y t o a cont ract of sale is subject t o any condit ion which is not performed, such part y may refuse t o proceed wit h t he cont ract or he may waive performance of t he condit ion. If t he ot her part y has promised t hat t he condit ion should happen or be performed, such first ment ioned part y may also t reat t he nonperformance of t he condit ion as a breach of warrant y . Where t he ownership in t he t hing has not passed, t he buy er may t reat t he fulfillment by t he seller of his obligat ion t o deliver t he same as described and as warrant ed expressly or by implicat ion in t he cont ract of sale as a condit ion of t he obligat ion of t he buy er t o perform his promise t o accept and pay for t he t hing. (n) Art . 1546. Any affirmat ion of fact or any promise by t he seller relat ing t o t he t hing is an express warrant y if t he nat ural t endency of such affirmat ion or promise is t o induce t he buy er t o purchase t he same, and if t he buy er purchase t he t hing rely ing t hereon. No affirmat ion of t he value of t he t hing, nor any st at ement purport ing t o be a st at ement of t he seller's opinion only , shall be const rued as a warrant y , unless t he seller made such affirmat ion or st at ement as an expert and it was relied upon by t he buy er. (n) Art . 1547 . In a cont ract of sale, unless a cont rary int ent ion appears, t here is: (1) An implied warrant y on t he part of t he seller t hat he has a right t o sell t he t hing at t he t ime when t he ownership is t o pass, and t hat t he buy er shall from t hat t ime have and enjoy t he legal and peaceful possession of t he t hing; (2) An implied warrant y t hat t he t hing shall be free from any hidden fault s or defect s, or any charge or encumbrance not declared or known t o t he buy er. This Art icle shall not , however, be held t o render liable a sheriff, auct ioneer, mort gagee, pledgee, or ot her person professing t o sell by virt ue of aut horit y in fact or law, for t he sale of a t hing in which a t hird person has a legal or equit able int erest . (n) SUBSECTION 1. - Warrant y in Case of Evict ion Art . 1548. Evict ion shall t ake place whenever by a final judgment based on a right prior t o t he sale or an act imput able t o t he vendor, t he vendee is deprived of t he whole or of a part of t he t hing purchased. The vendor shall answer for t he evict ion even t hough not hing has been said in t he cont ract on t he subject . The cont ract ing part ies, however, may increase, diminish, or suppress t his legal obligat ion of t he vendor. (147 5a) Art . 1549. The vendee need not appeal from t he decision in order t hat t he vendor may become liable for evict ion. (n) Art . 1550. When adverse possession had been commenced before t he sale but t he prescript ive period is complet ed aft er t he t ransfer, t he vendor shall not be liable for evict ion. (n) Art . 1551. If t he propert y is sold for nonpay ment of t axes due and not made known t o t he vendee before t he sale, t he vendor is liable for evict ion. (n) Art . 1552. The judgment debt or is also responsible for evict ion in judicial sales, unless it is ot herwise decreed in t he judgment . (n) Art . 1553. Any st ipulat ion exempt ing t he vendor from t he obligat ion t o answer for evict ion shall be void, if he act ed in bad fait h. (147 6) Art . 1554. If t he vendee has renounced t he right t o warrant y in case of evict ion, and evict ion should t ake place, t he vendor shall only pay t he value which t he t hing sold had at t he t ime of t he evict ion. Should t he vendee have made t he waiver wit h knowledge of t he risks of evict ion and assumed it s consequences, t he vendor shall not be liable. (147 7 )
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Art . 1555. When t he warrant y has been agreed upon or not hing has been st ipulat ed on t his point , in case evict ion occurs, t he vendee shall have t he right t o demand of t he vendor: (1) The ret urn of t he value which t he t hing sold had at t he t ime of t he evict ion, be it great er or less t han t he price of t he sale; (2) The income or fruit s, if he has been ordered t o deliver t hem t o t he part y who won t he suit against him; (3) The cost s of t he suit which caused t he evict ion, and, in a proper case, t hose of t he suit brought against t he vendor for t he warrant y ; (4) The expenses of t he cont ract , if t he vendee has paid t hem; (5) The damages and int erest s, and ornament al expenses, if t he sale was made in bad fait h. (147 8) Art . 1556. Should t he vendee lose, by reason of t he evict ion, a part of t he t hing sold of such import ance, in relat ion t o t he whole, t hat he would not have bought it wit hout said part , he may demand t he rescission of t he cont ract ; but wit h t he obligat ion t o ret urn t he t hing wit hout ot her encumbrances t hat t hose which it had when he acquired it . He may exercise t his right of act ion, inst ead of enforcing t he vendor's liabilit y for evict ion. The same rule shall be observed when t wo or more t hings have been joint ly sold for a lump sum, or for a separat e price for each of t hem, if it should clearly appear t hat t he vendee would not have purchased one wit hout t he ot her. (147 9a) Art . 1557 . The warrant y cannot be enforced unt il a final judgment has been rendered, whereby t he vendee loses t he t hing acquired or a part t hereof. (1480) Art . 1558. The vendor shall not be obliged t o make good t he proper warrant y , unless he is summoned in t he suit for evict ion at t he inst ance of t he vendee. (1481a) Art . 1559. The defendant vendee shall ask, wit hin t he t ime fixed in t he Rules of Court for answering t he complaint , t hat t he vendor be made a co-defendant . (1482a) Art . 1560. If t he immovable sold should be encumbered wit h any non-apparent burden or servit ude, not ment ioned in t he agreement , of such a nat ure t hat it must be presumed t hat t he vendee would not have acquired it had he been aware t hereof, he may ask for t he rescission of t he cont ract , unless he should prefer t he appropriat e indemnit y . Neit her right can be exercised if t he non-apparent burden or servit ude is recorded in t he Regist ry of Propert y , unless t here is an express warrant y t hat t he t hing is free from all burdens and encumbrances. Wit hin one y ear, t o be comput ed from t he execut ion of t he deed, t he vendee may bring t he act ion for rescission, or sue for damages. One y ear having elapsed, he may only bring an act ion for damages wit hin an equal period, t o be count ed from t he dat e on which he discovered t he burden or servit ude. (1483a) SUBSECTION 2. - Warrant y Against Hidden Defect s of or Encumbrances Upon t he Thing Sold Art . 1561. The vendor shall be responsible for warrant y against t he hidden defect s which t he t hing sold may have, should t hey render it unfit for t he use for which it is int ended, or should t hey diminish it s fit ness for such use t o such an ext ent t hat , had t he vendee been aware t hereof, he would not have acquired it or would have given a lower price for it ; but said vendor shall not be answerable for pat ent defect s or t hose which may be visible, or for t hose which are not visible if t he vendee is an expert who, by reason of his t rade or profession, should have known t hem. (1484a) Art . 1562. In a sale of goods, t here is an implied warrant y or condit ion as t o t he qualit y or fit ness of t he goods, as follows: (1) Where t he buy er, expressly or by implicat ion, makes known t o t he seller t he part icular purpose for which t he goods are acquired, and it appears t hat t he buy er relies on t he seller's skill or judgment (whet her he be t he grower or manufact urer or not ), t here is an implied warrant y t hat t he goods shall be reasonably fit for such purpose; (2) Where t he goods are brought by descript ion from a seller who deals in goods of t hat descript ion (whet her he be t he grower or manufact urer or not ), t here is an implied warrant y t hat t he goods shall be of merchant able qualit y . (n) Art . 1563. In t he case of cont ract of sale of a specified art icle under it s pat ent or ot her t rade name, t here is no warrant y as t o it s fit ness for any part icular purpose, unless t here is a st ipulat ion t o t he cont rary . (n) Art . 1564. An implied warrant y or condit ion as t o t he qualit y or fit ness for a part icular purpose may be annexed by t he usage of t rade. (n)
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Art . 1565. In t he case of a cont ract of sale by sample, if t he seller is a dealer in goods of t hat kind, t here is an implied warrant y t hat t he goods shall be free from any defect rendering t hem unmerchant able which would not be apparent on reasonable examinat ion of t he sample. (n) Art . 1566. The vendor is responsible t o t he vendee for any hidden fault s or defect s in t he t hing sold, even t hough he was not aware t hereof. This provision shall not apply if t he cont rary has been st ipulat ed, and t he vendor was not aware of t he hidden fault s or defect s in t he t hing sold. (1485) Art . 1567 . In t he cases of Art icles 1561, 1562, 1564, 1565 and 1566, t he vendee may elect bet ween wit hdrawing from t he cont ract and demanding a proport ionat e reduct ion of t he price, wit h damages in eit her case. (1486a) Art . 1568. If t he t hing sold should be lost in consequence of t he hidden fault s, and t he vendor was aware of t hem, he shall bear t he loss, and shall be obliged t o ret urn t he price and refund t he expenses of t he cont ract , wit h damages. If he was not aware of t hem, he shall only ret urn t he price and int erest t hereon, and reimburse t he expenses of t he cont ract which t he vendee might have paid. (1487 a) Art . 1569. If t he t hing sold had any hidden fault at t he t ime of t he sale, and should t hereaft er be lost by a fort uit ous event or t hrough t he fault of t he vendee, t he lat t er may demand of t he vendor t he price which he paid, less t he value which t he t hing had when it was lost . If t he vendor act ed in bad fait h, he shall pay damages t o t he vendee. (1488a) Art . 157 0. The preceding art icles of t his Subsect ion shall be applicable t o judicial sales, except t hat t he judgment debt or shall not be liable for damages. (1489a) Art . 157 1. Act ions arising from t he provisions of t he preceding t en art icles shall be barred aft er six mont hs, from t he delivery of t he t hing sold. (1490) Art . 157 2. If t wo or more animals are sold t oget her, whet her for a lump sum or for a separat e price for each of t hem, t he redhibit ory defect of one shall only give rise t o it s redhibit ion, and not t hat of t he ot hers; unless it should appear t hat t he vendee would not have purchased t he sound animal or animals wit hout t he defect ive one. The lat t er case shall be presumed when a t eam, y oke pair, or set is bought , even if a separat e price has been fixed for each one of t he animals composing t he same. (1491) Art . 157 3. The provisions of t he preceding art icle wit h respect t o t he sale of animals shall in like manner be applicable t o t he sale of ot her t hings. (1492) Art . 157 4. There is no warrant y against hidden defect s of animals sold at fairs or at public auct ions, or of live st ock sold as condemned. (1493a) Art . 157 5. The sale of animals suffering from cont agious diseases shall be void. A cont ract of sale of animals shall also be void if t he use or service for which t hey are acquired has been st at ed in t he cont ract , and t hey are found t o be unfit t herefor. (1494a) Art . 157 6. If t he hidden defect of animals, even in case a professional inspect ion has been made, should be of such a nat ure t hat expert knowledge is not sufficient t o discover it , t he defect shall be considered as redhibit ory . But if t he vet erinarian, t hrough ignorance or bad fait h should fail t o discover or disclose it , he shall be liable for damages. (1495) Art . 157 7 . The redhibit ory act ion, based on t he fault s or defect s of animals, must be brought wit hin fort y day s from t he dat e of t heir delivery t o t he vendee. This act ion can only be exercised wit h respect t o fault s and defect s which are det ermined by law or by local cust oms. (1496a) Art . 157 8. If t he animal should die wit hin t hree day s aft er it s purchase, t he vendor shall be liable if t he disease which cause t he deat h exist ed at t he t ime of t he cont ract . (1497 a) Art . 157 9. If t he sale be rescinded, t he animal shall be ret urned in t he condit ion in which it was sold and delivered, t he vendee being answerable for any injury due t o his negligence, and not arising from t he redhibit ory fault or defect . (1498) Art . 1580. In t he sale of animals wit h redhibit ory defect s, t he vendee shall also enjoy t he right ment ioned in art icle 1567 ; but he must make use t hereof wit hin t he same period which has been fixed for t he exercise of t he redhibit ory act ion. (1499) Art . 1581. The form of sale of large cat t le shall be governed by special laws. (n)
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CHAPTER 5 OBLIGATIONS OF THE VENDEE Art . 1582. The vendee is bound t o accept delivery and t o pay t he price of t he t hing sold at t he t ime and place st ipulat ed in t he cont ract . If t he t ime and place should not have been st ipulat ed, t he pay ment must be made at t he t ime and place of t he delivery of t he t hing sold. (1500a) Art . 1583. Unless ot herwise agreed, t he buy er of goods is not bound t o accept delivery t hereof by inst allment s. Where t here is a cont ract of sale of goods t o be delivered by st at ed inst allment s, which are t o be separat ely paid for, and t he seller makes defect ive deliveries in respect of one or more inst alment s, or t he buy er neglect s or refuses wit hout just cause t o t ake delivery of or pay for one more inst alment s, it depends in each case on t he t erms of t he cont ract and t he circumst ances of t he case, whet her t he breach of cont ract is so mat erial as t o just ify t he injured part y in refusing t o proceed furt her and suing for damages for breach of t he ent ire cont ract , or whet her t he breach is severable, giving rise t o a claim for compensat ion but not t o a right t o t reat t he whole cont ract as broken. (n) Art . 1584. Where goods are delivered t o t he buy er, which he has not previously examined, he is not deemed t o have accept ed t hem unless and unt il he has had a reasonable opport unit y of examining t hem for t he purpose of ascert aining whet her t hey are in conformit y wit h t he cont ract if t here is no st ipulat ion t o t he cont rary . Unless ot herwise agreed, when t he seller t enders delivery of goods t o t he buy er, he is bound, on request , t o afford t he buy er a reasonable opport unit y of examining t he goods for t he purpose of ascert aining whet her t hey are in conformit y wit h t he cont ract . Where goods are delivered t o a carrier by t he seller, in accordance wit h an order from or agreement wit h t he buy er, upon t he t erms t hat t he goods shall not be delivered by t he carrier t o t he buy er unt il he has paid t he price, whet her such t erms are indicat ed by marking t he goods wit h t he words "collect on delivery ," or ot herwise, t he buy er is not ent it led t o examine t he goods before t he pay ment of t he price, in t he absence of agreement or usage of t rade permit t ing such examinat ion. (n) Art . 1585. The buy er is deemed t o have accept ed t he goods when he int imat es t o t he seller t hat he has accept ed t hem, or when t he goods have been delivered t o him, and he does any act in relat ion t o t hem which is inconsist ent wit h t he ownership of t he seller, or when, aft er t he lapse of a reasonable t ime, he ret ains t he goods wit hout int imat ing t o t he seller t hat he has reject ed t hem. (n) Art . 1586. In t he absence of express or implied agreement of t he part ies, accept ance of t he goods by t he buy er shall not discharge t he seller from liabilit y in damages or ot her legal remedy for breach of any promise or warrant y in t he cont ract of sale. But , if, aft er accept ance of t he goods, t he buy er fails t o give not ice t o t he seller of t he breach in any promise of warrant y wit hin a reasonable t ime aft er t he buy er knows, or ought t o know of such breach, t he seller shall not be liable t herefor. (n) Art . 1587 . Unless ot herwise agreed, where goods are delivered t o t he buy er, and he refuses t o accept t hem, having t he right so t o do, he is not bound t o ret urn t hem t o t he seller, but it is sufficient if he not ifies t he seller t hat he refuses t o accept t hem. If he volunt arily const it ut es himself a deposit ary t hereof, he shall be liable as such. (n) Art . 1588. If t here is no st ipulat ion as specified in t he first paragraph of art icle 1523, when t he buy er's refusal t o accept t he goods is wit hout just cause, t he t it le t heret o passes t o him from t he moment t hey are placed at his disposal. (n) Art . 1589. The vendee shall owe int erest for t he period bet ween t he delivery of t he t hing and t he pay ment of t he price, in t he following t hree cases: (1) Should it have been so st ipulat ed; (2) Should t he t hing sold and delivered produce fruit s or income; (3) Should he be in default , from t he t ime of judicial or ext rajudicial demand for t he pay ment of t he price. (1501a) Art . 1590. Should t he vendee be dist urbed in t he possession or ownership of t he t hing acquired, or should he have reasonable grounds t o fear such dist urbance, by a vindicat ory act ion or a foreclosure of mort gage, he may suspend t he pay ment of t he price unt il t he vendor has caused t he dist urbance or danger t o cease, unless t he lat t er gives securit y for t he ret urn of t he price in a proper case, or it has been st ipulat ed t hat , not wit hst anding any such cont ingency , t he vendee shall be bound t o make t he pay ment . A mere act of t respass shall not aut horize t he suspension of t he pay ment of t he price. (1502a) Art . 1591. Should t he vendor have reasonable grounds t o fear t he loss of immovable propert y sold and it s price, he may immediat ely sue for t he rescission of t he sale. Should such ground not exist , t he provisions of Art icle 1191 shall be observed. (1503)
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Art . 1592. In t he sale of immovable propert y , even t hough it may have been st ipulat ed t hat upon failure t o pay t he price at t he t ime agreed upon t he rescission of t he cont ract shall of right t ake place, t he vendee may pay , even aft er t he expirat ion of t he period, as long as no demand for rescission of t he cont ract has been made upon him eit her judicially or by a not arial act . Aft er t he demand, t he court may not grant him a new t erm. (1504a) Art . 1593. Wit h respect t o movable propert y , t he rescission of t he sale shall of right t ake place in t he int erest of t he vendor, if t he vendee, upon t he expirat ion of t he period fixed for t he delivery of t he t hing, should not have appeared t o receive it , or, having appeared, he should not have t endered t he price at t he same t ime, unless a longer period has been st ipulat ed for it s pay ment . (1505) CHAPTER 6 ACTIONS FOR BREACH OF CONTRACT OF SALE OF GOODS Art . 1594. Act ions for breach of t he cont ract of sale of goods shall be governed part icularly by t he provisions of t his Chapt er, and as t o mat t ers not specifically provided for herein, by ot her applicable provisions of t his Tit le. (n) Art . 1595. Where, under a cont ract of sale, t he ownership of t he goods has passed t o t he buy er and he wrongfully neglect s or refuses t o pay for t he goods according t o t he t erms of t he cont ract of sale, t he seller may maint ain an act ion against him for t he price of t he goods. Where, under a cont ract of sale, t he price is pay able on a cert ain day , irrespect ive of delivery or of t ransfer of t it le and t he buy er wrongfully neglect s or refuses t o pay such price, t he seller may maint ain an act ion for t he price alt hough t he ownership in t he goods has not passed. But it shall be a defense t o such an act ion t hat t he seller at any t ime before t he judgment in such act ion has manifest ed an inabilit y t o perform t he cont ract of sale on his part or an int ent ion not t o perform it . Alt hough t he ownership in t he goods has not passed, if t hey cannot readily be resold for a reasonable price, and if t he provisions of art icle 1596, fourt h paragraph, are not applicable, t he seller may offer t o deliver t he goods t o t he buy er, and, if t he buy er refuses t o receive t hem, may not ify t he buy er t hat t he goods are t hereaft er held by t he seller as bailee for t he buy er. Thereaft er t he seller may t reat t he goods as t he buy er's and may maint ain an act ion for t he price. (n) Art . 1596. Where t he buy er wrongfully neglect s or refuses t o accept and pay for t he goods, t he seller may maint ain an act ion against him for damages for nonaccept ance. The measure of damages is t he est imat ed loss direct ly and nat urally result ing in t he ordinary course of event s from t he buy er's breach of cont ract . Where t here is an available market for t he goods in quest ion, t he measure of damages is, in t he absence of special circumst ances showing proximat e damage of a different amount , t he difference bet ween t he cont ract price and t he market or current price at t he t ime or t imes when t he goods ought t o have been accept ed, or, if no t ime was fixed for accept ance, t hen at t he t ime of t he refusal t o accept . If, while labor or expense of mat erial amount is necessary on t he part of t he seller t o enable him t o fulfill his obligat ions under t he cont ract of sale, t he buy er repudiat es t he cont ract or not ifies t he seller t o proceed no furt her t herewit h, t he buy er shall be liable t o t he seller for labor performed or expenses made before receiving not ice of t he buy er's repudiat ion or count ermand. The profit t he seller would have made if t he cont ract or t he sale had been fully performed shall be considered in awarding t he damages. (n) Art . 1597 . Where t he goods have not been delivered t o t he buy er, and t he buy er has repudiat ed t he cont ract of sale, or has manifest ed his inabilit y t o perform his obligat ions t hereunder, or has commit t ed a breach t hereof, t he seller may t ot ally rescind t he cont ract of sale by giving not ice of his elect ion so t o do t o t he buy er. (n) Art . 1598. Where t he seller has broken a cont ract t o deliver specific or ascert ained goods, a court may , on t he applicat ion of t he buy er, direct t hat t he cont ract shall be performed specifically , wit hout giving t he seller t he opt ion of ret aining t he goods on pay ment of damages. The judgment or decree may be uncondit ional, or upon such t erms and condit ions as t o damages, pay ment of t he price and ot herwise, as t he court may deem just . (n) Art . 1599. Where t here is a breach of warrant y by t he seller, t he buy er may , at his elect ion: (1) Accept or keep t he goods and set up against t he seller, t he breach of warrant y by way of recoupment in diminut ion or ext inct ion of t he price; (2) Accept or keep t he goods and maint ain an act ion against t he seller for damages for t he breach of warrant y ; (3) Refuse t o accept t he goods, and maint ain an act ion against t he seller for damages for t he breach of warrant y ; (4) Rescind t he cont ract of sale and refuse t o receive t he goods or if t he goods have already been received, ret urn t hem or offer t o ret urn t hem t o t he seller and recover t he price or any part t hereof which has been paid. When t he buy er has claimed and been grant ed a remedy in any one of t hese way s, no ot her remedy can
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t hereaft er be grant ed, wit hout prejudice t o t he provisions of t he second paragraph of Art icle 1191. Where t he goods have been delivered t o t he buy er, he cannot rescind t he sale if he knew of t he breach of warrant y when he accept ed t he goods wit hout prot est , or if he fails t o not ify t he seller wit hin a reasonable t ime of t he elect ion t o rescind, or if he fails t o ret urn or t o offer t o ret urn t he goods t o t he seller in subst ant ially as good condit ion as t hey were in at t he t ime t he ownership was t ransferred t o t he buy er. But if det eriorat ion or injury of t he goods is due t o t he breach or warrant y , such det eriorat ion or injury shall not prevent t he buy er from ret urning or offering t o ret urn t he goods t o t he seller and rescinding t he sale. Where t he buy er is ent it led t o rescind t he sale and elect s t o do so, he shall cease t o be liable for t he price upon ret urning or offering t o ret urn t he goods. If t he price or any part t hereof has already been paid, t he seller shall be liable t o repay so much t hereof as has been paid, concurrent ly wit h t he ret urn of t he goods, or immediat ely aft er an offer t o ret urn t he goods in exchange for repay ment of t he price. Where t he buy er is ent it led t o rescind t he sale and elect s t o do so, if t he seller refuses t o accept an offer of t he buy er t o ret urn t he goods, t he buy er shall t hereaft er be deemed t o hold t he goods as bailee for t he seller, but subject t o a lien t o secure pay ment of any port ion of t he price which has been paid, and wit h t he remedies for t he enforcement of such lien allowed t o an unpaid seller by Art icle 1526. (5) In t he case of breach of warrant y of qualit y , such loss, in t he absence of special circumst ances showing proximat e damage of a great er amount , is t he difference bet ween t he value of t he goods at t he t ime of delivery t o t he buy er and t he value t hey would have had if t hey had answered t o t he warrant y . (n) CHAPTER 7 EXTINGUISHMENT OF SALE Art . 1600. Sales are ext inguished by t he same causes as all ot her obligat ions, by t hose st at ed in t he preceding art icles of t his Tit le, and by convent ional or legal redempt ion. (1506) SECTION 1. - Convent ional Redempt ion Art . 1601. Convent ional redempt ion shall t ake place when t he vendor reserves t he right t o repurchase t he t hing sold, wit h t he obligat ion t o comply wit h t he provisions of Art icle 1616 and ot her st ipulat ions which may have been agreed upon. (1507 ) Art . 1602. The cont ract shall be presumed t o be an equit able mort gage, in any of t he following cases: (1) When t he price of a sale wit h right t o repurchase is unusually inadequat e; (2) When t he vendor remains in possession as lessee or ot herwise; (3) When upon or aft er t he expirat ion of t he right t o repurchase anot her inst rument ext ending t he period of redempt ion or grant ing a new period is execut ed; (4) When t he purchaser ret ains for himself a part of t he purchase price; (5) When t he vendor binds himself t o pay t he t axes on t he t hing sold; (6) In any ot her case where it may be fairly inferred t hat t he real int ent ion of t he part ies is t hat t he t ransact ion shall secure t he pay ment of a debt or t he performance of any ot her obligat ion. In any of t he foregoing cases, any money , fruit s, or ot her benefit t o be received by t he vendee as rent or ot herwise shall be considered as int erest which shall be subject t o t he usury laws. (n) Art . 1603. In case of doubt , a cont ract purport ing t o be a sale wit h right t o repurchase shall be const rued as an equit able mort gage. (n) Art . 1604. The provisions of Art icle 1602 shall also apply t o a cont ract purport ing t o be an absolut e sale. (n) Art . 1605. In t he cases referred t o in Art icles 1602 and 1604, t he apparent vendor may ask for t he reformat ion of t he inst rument . (n) Art . 1606. The right referred t o in Art icle 1601, in t he absence of an express agreement , shall last four y ears from t he dat e of t he cont ract . Should t here be an agreement , t he period cannot exceed t en y ears. However, t he vendor may st ill exercise t he right t o repurchase wit hin t hirt y day s from t he t ime final judgment was rendered in a civil act ion on t he basis t hat t he cont ract was a t rue sale wit h right t o repurchase. (1508a) Art . 1607 . In case of real propert y , t he consolidat ion of ownership in t he vendee by virt ue of t he failure of t he vendor t o comply wit h t he provisions of art icle 1616 shall not be recorded in t he Regist ry of Propert y wit hout a judicial order,
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aft er t he vendor has been duly heard. (n) Art . 1608. The vendor may bring his act ion against every possessor whose right is derived from t he vendee, even if in t he second cont ract no ment ion should have been made of t he right t o repurchase, wit hout prejudice t o t he provisions of t he Mort gage Law and t he Land Regist rat ion Law wit h respect t o t hird persons. (1510) Art . 1609. The vendee is subrogat ed t o t he vendor's right s and act ions. (1511) Art . 1610. The credit ors of t he vendor cannot make use of t he right of redempt ion against t he vendee, unt il aft er t hey have exhaust ed t he propert y of t he vendor. (1512) Art . 1611. In a sale wit h a right t o repurchase, t he vendee of a part of an undivided immovable who acquires t he whole t hereof in t he case of art icle 498, may compel t he vendor t o redeem t he whole propert y , if t he lat t er wishes t o make use of t he right of redempt ion. (1513) Art . 1612. If several persons, joint ly and in t he same cont ract , should sell an undivided immovable wit h a right of repurchase, none of t hem may exercise t his right for more t han his respect ive share. The same rule shall apply if t he person who sold an immovable alone has left several heirs, in which case each of t he lat t er may only redeem t he part which he may have acquired. (1514) Art . 1613. In t he case of t he preceding art icle, t he vendee may demand of all t he vendors or co-heirs t hat t hey come t o an agreement upon t he purchase of t he whole t hing sold; and should t hey fail t o do so, t he vendee cannot be compelled t o consent t o a part ial redempt ion. (1515) Art . 1614. Each one of t he co-owners of an undivided immovable who may have sold his share separat ely , may independent ly exercise t he right of repurchase as regards his own share, and t he vendee cannot compel him t o redeem t he whole propert y . (1516) Art . 1615. If t he vendee should leave several heirs, t he act ion for redempt ion cannot be brought against each of t hem except for his own share, whet her t he t hing be undivided, or it has been part it ioned among t hem. But if t he inherit ance has been divided, and t he t hing sold has been awarded t o one of t he heirs, t he act ion for redempt ion may be inst it ut ed against him for t he whole. (1517 ) Art . 1616. The vendor cannot avail himself of t he right of repurchase wit hout ret urning t o t he vendee t he price of t he sale, and in addit ion: (1) The expenses of t he cont ract , and any ot her legit imat e pay ment s made by reason of t he sale; (2) The necessary and useful expenses made on t he t hing sold. (1518) Art . 1617 . If at t he t ime of t he execut ion of t he sale t here should be on t he land, visible or growing fruit s, t here shall be no reimbursement for or prorat ing of t hose exist ing at t he t ime of redempt ion, if no indemnit y was paid by t he purchaser when t he sale was execut ed. Should t here have been no fruit s at t he t ime of t he sale and some exist at t he t ime of redempt ion, t hey shall be prorat ed bet ween t he redempt ioner and t he vendee, giving t he lat t er t he part corresponding t o t he t ime he possessed t he land in t he last y ear, count ed from t he anniversary of t he dat e of t he sale. (1519a) Art . 1618. The vendor who recovers t he t hing sold shall receive it free from all charges or mort gages const it ut ed by t he vendee, but he shall respect t he leases which t he lat t er may have execut ed in good fait h, and in accordance wit h t he cust om of t he place where t he land is sit uat ed. (1520) SECTION 2. - Legal Redempt ion Art . 1619. Legal redempt ion is t he right t o be subrogat ed, upon t he same t erms and condit ions st ipulat ed in t he cont ract , in t he place of one who acquires a t hing by purchase or dat ion in pay ment , or by any ot her t ransact ion whereby ownership is t ransmit t ed by onerous t it le. (1521a) Art . 1620. A co-owner of a t hing may exercise t he right of redempt ion in case t he shares of all t he ot her co-owners or of any of t hem, are sold t o a t hird person. If t he price of t he alienat ion is grossly excessive, t he redempt ioner shall pay only a reasonable one. Should t wo or more co-owners desire t o exercise t he right of redempt ion, t hey may only do so in proport ion t o t he share t hey may respect ively have in t he t hing owned in common. (1522a) Art . 1621. The owners of adjoining lands shall also have t he right of redempt ion when a piece of rural land, t he area of which does not exceed one hect are, is alienat ed, unless t he grant ee does not own any rural land. This right is not applicable t o adjacent lands which are separat ed by brooks, drains, ravines, roads and ot her apparent servit udes for t he benefit of ot her est at es.
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If t wo or more adjoining owners desire t o exercise t he right of redempt ion at t he same t ime, t he owner of t he adjoining land of smaller area shall be preferred; and should bot h lands have t he same area, t he one who first request ed t he redempt ion. (1523a) Art . 1622. Whenever a piece of urban land which is so small and so sit uat ed t hat a major port ion t hereof cannot be used for any pract ical purpose wit hin a reasonable t ime, having been bought merely for speculat ion, is about t o be resold, t he owner of any adjoining land has a right of pre-empt ion at a reasonable price. If t he re-sale has been perfect ed, t he owner of t he adjoining land shall have a right of redempt ion, also at a reasonable price. When t wo or more owners of adjoining lands wish t o exercise t he right of pre-empt ion or redempt ion, t he owner whose int ended use of t he land in quest ion appears best just ified shall be preferred. (n) Art . 1623. The right of legal pre-empt ion or redempt ion shall not be exercised except wit hin t hirt y day s from t he not ice in writ ing by t he prospect ive vendor, or by t he vendor, as t he case may be. The deed of sale shall not be recorded in t he Regist ry of Propert y , unless accompanied by an affidavit of t he vendor t hat he has given writ t en not ice t hereof t o all possible redempt ioners. The right of redempt ion of co-owners excludes t hat of adjoining owners. (1524a) CHAPTER 8 ASSIGNMENT OF CREDITS AND OTHER INCORPOREAL RIGHTS Art . 1624. An assignment of credit ors and ot her incorporeal right s shall be perfect ed in accordance wit h t he provisions of Art icle 147 5. (n) Art . 1625. An assignment of a credit , right or act ion shall produce no effect as against t hird person, unless it appears in a public inst rument , or t he inst rument is recorded in t he Regist ry of Propert y in case t he assignment involves real propert y . (1526) Art . 1626. The debt or who, before having knowledge of t he assignment , pay s his credit or shall be released from t he obligat ion. (1527 ) Art . 1627 . The assignment of a credit includes all t he accessory right s, such as a guarant y , mort gage, pledge or preference. (1528) Art . 1628. The vendor in good fait h shall be responsible for t he exist ence and legalit y of t he credit at t he t ime of t he sale, unless it should have been sold as doubt ful; but not for t he solvency of t he debt or, unless it has been so expressly st ipulat ed or unless t he insolvency was prior t o t he sale and of common knowledge. Even in t hese cases he shall only be liable for t he price received and for t he expenses specified in No. 1 of Art icle 1616. The vendor in bad fait h shall alway s be answerable for t he pay ment of all expenses, and for damages. (1529) Art . 1629. In case t he assignor in good fait h should have made himself responsible for t he solvency of t he debt or, and t he cont ract ing part ies should not have agreed upon t he durat ion of t he liabilit y , it shall last for one y ear only , from t he t ime of t he assignment if t he period had already expired. If t he credit should be pay able wit hin a t erm or period which has not y et expired, t he liabilit y shall cease one y ear aft er t he mat urit y . (1530a) Art . 1630. One who sells an inherit ance wit hout enumerat ing t he t hings of which it is composed, shall only be answerable for his charact er as an heir. (1531) Art . 1631. One who sells for a lump sum t he whole of cert ain right s, rent s, or product s, shall comply by answering for t he legit imacy of t he whole in general; but he shall not be obliged t o warrant each of t he various part s of which it may be composed, except in t he case of evict ion from t he whole or t he part of great er value. (1532a) Art . 1632. Should t he vendor have profit ed by some of t he fruit s or received any t hing from t he inherit ance sold, he shall pay t he vendee t hereof, if t he cont rary has not been st ipulat ed. (1533) Art . 1633. The vendee shall, on his part , reimburse t he vendor for all t hat t he lat t er may have paid for t he debt s of and charges on t he est at e and sat isfy t he credit s he may have against t he same, unless t here is an agreement t o t he cont rary . (1534) Art . 1634. When a credit or ot her incorporeal right in lit igat ion is sold, t he debt or shall have a right t o ext inguish it by reimbursing t he assignee for t he price t he lat t er paid t herefor, t he judicial cost s incurred by him, and t he int erest on t he price from t he day on which t he same was paid.
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A credit or ot her incorporeal right shall be considered in lit igat ion from t he t ime t he complaint concerning t he same is answered. The debt or may exercise his right wit hin t hirt y day s from t he dat e t he assignee demands pay ment from him. (1535) Art . 1635. From t he provisions of t he preceding art icle shall be except ed t he assignment s or sales made: (1) To a co-heir or co-owner of t he right assigned; (2) To a credit or in pay ment of his credit ; (3) To t he possessor of a t enement or piece of land which is subject t o t he right in lit igat ion assigned. (1536) CHAPTER 9 GENERAL PROVISIONS Art . 1636. In t he preceding art icles in t his Tit le governing t he sale of goods, unless t he cont ext or subject mat t er ot herwise requires: (1) "Document of title to goods" includes any bill of lading, dock warrant , "quedan," or warehouse receipt or order for t he delivery of goods, or any ot her document used in t he ordinary course of business in t he sale or t ransfer of goods, as proof of t he possession or cont rol of t he goods, or aut horizing or purport ing t o aut horize t he possessor of t he document t o t ransfer or receive, eit her by endorsement or by delivery , goods represent ed by such document . "Goods" includes all chat t els personal but not t hings in act ion or money of legal t ender in t he Philippines. The t erm includes growing fruit s or crops. "Order" relat ing t o document s of t it le means an order by endorsement on t he document s. "Quality of goods" includes t heir st at e or condit ion. "Specific goods" means goods ident ified and agreed upon at t he t ime a cont ract of sale is made. An ant ecedent or pre-exist ing claim, whet her for money or not , const it ut es "value" where goods or document s of t it le are t aken eit her in sat isfact ion t hereof or as securit y t herefor. (2) A person is insolvent wit hin t he meaning of t his Tit le who eit her has ceased t o pay his debt s in t he ordinary course of business or cannot pay his debt s as t hey become due, whet her insolvency proceedings have been commenced or not . (3) Goods are in a "deliverable state" wit hin t he meaning of t his Tit le when t hey are in such a st at e t hat t he buy er would, under t he cont ract , be bound t o t ake delivery of t hem. (n) Art . 1637 . The provisions of t his Tit le are subject t o t he rules laid down by t he Mort gage Law and t he Land Regist rat ion Law wit h regard t o immovable propert y . (1537 a) Tit le VII. - BARTER OR EXCHANGE Art . 1638. By t he cont ract of bart er or exchange one of t he part ies binds himself t o give one t hing in considerat ion of t he ot her's promise t o give anot her t hing. (1538a) Art . 1639. If one of t he cont ract ing part ies, having received t he t hing promised him in bart er, should prove t hat it did not belong t o t he person who gave it , he cannot be compelled t o deliver t hat which he offered in exchange, but he shall be ent it led t o damages. (1539a) Art . 1640. One who loses by evict ion t he t hing received in bart er may recover t hat which he gave in exchange wit h a right t o damages, or he may only demand an indemnit y for damages. However, he can only make use of t he right t o recover t he t hing which he has delivered while t he same remains in t he possession of t he ot her part y , and wit hout prejudice t o t he right s acquired in good fait h in t he meant ime by a t hird person. (1540a) Art . 1641. As t o all mat t ers not specifically provided for in t his Tit le, bart er shall be governed by t he provisions of t he preceding Tit le relat ing t o sales. (1541a) Tit le VIII. - LEASE CHAPTER 1 GENERAL PROVISIONS Art . 1642. The cont ract of lease may be of t hings, or of work and service. (1542) Art . 1643. In t he lease of t hings, one of t he part ies binds himself t o give t o anot her t he enjoy ment or use of a t hing for a price cert ain, and for a period which may be definit e or indefinit e. However, no lease for more t han ninet y -nine y ears
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shall be valid. (1543a) Art . 1644. In t he lease of work or service, one of t he part ies binds himself t o execut e a piece of work or t o render t o t he ot her some service for a price cert ain, but t he relat ion of principal and agent does not exist bet ween t hem. (1544a) Art . 1645. Consumable goods cannot be t he subject mat t er of a cont ract of lease, except when t hey are merely t o be exhibit ed or when t hey are accessory t o an indust rial est ablishment . (1545a) CHAPTER 2 LEASE OF RURAL AND URBAN LANDS SECTION 1. - General Provisions Art . 1646. The persons disqualified t o buy referred t o in Art icles 1490 and 1491, are also disqualified t o become lessees of t he t hings ment ioned t herein. (n) Art . 1647 . If a lease is t o be recorded in t he Regist ry of Propert y , t he following persons cannot const it ut e t he same wit hout proper aut horit y : t he husband wit h respect t o t he wife's paraphernal real est at e, t he fat her or guardian as t o t he propert y of t he minor or ward, and t he manager wit hout special power. (1548a) Art . 1648. Every lease of real est at e may be recorded in t he Regist ry of Propert y . Unless a lease is recorded, it shall not be binding upon t hird persons. (1549a) Art . 1649. The lessee cannot assign t he lease wit hout t he consent of t he lessor, unless t here is a st ipulat ion t o t he cont rary . (n) Art . 1650. When in t he cont ract of lease of t hings t here is no express prohibit ion, t he lessee may sublet t he t hing leased, in whole or in part , wit hout prejudice t o his responsibilit y for t he performance of t he cont ract t oward t he lessor. (1550) Art . 1651. Wit hout prejudice t o his obligat ion t oward t he sublessor, t he sublessee is bound t o t he lessor for all act s which refer t o t he use and preservat ion of t he t hing leased in t he manner st ipulat ed bet ween t he lessor and t he lessee. (1551) Art . 1652. The sublessee is subsidiarily liable t o t he lessor for any rent due from t he lessee. However, t he sublessee shall not be responsible bey ond t he amount of rent due from him, in accordance wit h t he t erms of t he sublease, at t he t ime of t he ext rajudicial demand by t he lessor. Pay ment s of rent in advance by t he sublessee shall be deemed not t o have been made, so far as t he lessor's claim is concerned, unless said pay ment s were effect ed in virt ue of t he cust om of t he place. (1552a) Art . 1653. The provisions governing warrant y , cont ained in t he Tit le on Sales, shall be applicable t o t he cont ract of lease. In t he cases where t he ret urn of t he price is required, reduct ion shall be made in proport ion t o t he t ime during which t he lessee enjoy ed t he t hing. (1553) SECTION 2. - Right s and Obligat ions of t he Lessor and t he Lessee Art . 1654. The lessor is obliged: (1) To deliver t he t hing which is t he object of t he cont ract in such a condit ion as t o render it fit for t he use int ended; (2) To make on t he same during t he lease all t he necessary repairs in order t o keep it suit able for t he use t o which it has been devot ed, unless t here is a st ipulat ion t o t he cont rary ; (3) To maint ain t he lessee in t he peaceful and adequat e enjoy ment of t he lease for t he ent ire durat ion of t he cont ract . (1554a) Art . 1655. If t he t hing leased is t ot ally dest roy ed by a fort uit ous event , t he lease is ext inguished. If t he dest ruct ion is part ial, t he lessee may choose bet ween a proport ional reduct ion of t he rent and a rescission of t he lease. (n) Art . 1656. The lessor of a business or indust rial est ablishment may cont inue engaging in t he same business or indust ry t o which t he lessee devot es t he t hing leased, unless t here is a st ipulat ion t o t he cont rary . (n) Art . 1657 . The lessee is obliged: (1) To pay t he price of t he lease according t o t he t erms st ipulat ed; (2) To use t he t hing leased as a diligent fat her of a family , devot ing it t o t he use st ipulat ed; and in t he absence of st ipulat ion, t o t hat which may be inferred from t he nat ure of t he t hing leased, according t o t he cust om of t he
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place; (3) To pay expenses for t he deed of lease. (1555) Art . 1658. The lessee may suspend t he pay ment of t he rent in case t he lessor fails t o make t he necessary repairs or t o maint ain t he lessee in peaceful and adequat e enjoy ment of t he propert y leased. (n) Art . 1659. If t he lessor or t he lessee should not comply wit h t he obligat ions set fort h in Art icles 1654 and 1657 , t he aggrieved part y may ask for t he rescission of t he cont ract and indemnificat ion for damages, or only t he lat t er, allowing t he cont ract t o remain in force. (1556) Art . 1660. If a dwelling place or any ot her building int ended for human habit at ion is in such a condit ion t hat it s use brings imminent and serious danger t o life or healt h, t he lessee may t erminat e t he lease at once by not ify ing t he lessor, even if at t he t ime t he cont ract was perfect ed t he former knew of t he dangerous condit ion or waived t he right t o rescind t he lease on account of t his condit ion. (n) Art . 1661. The lessor cannot alt er t he form of t he t hing leased in such a way as t o impair t he use t o which t he t hing is devot ed under t he t erms of t he lease. (1557 a) Art . 1662. If during t he lease it should become necessary t o make some urgent repairs upon t he t hing leased, which cannot be deferred unt il t he t erminat ion of t he lease, t he lessee is obliged t o t olerat e t he work, alt hough it may be very annoy ing t o him, and alt hough during t he same, he may be deprived of a part of t he premises. If t he repairs last more t han fort y day s t he rent shall be reduced in proport ion t o t he t ime - including t he first fort y day s - and t he part of t he propert y of which t he lessee has been deprived. When t he work is of such a nat ure t hat t he port ion which t he lessee and his family need for t heir dwelling becomes uninhabit able, he may rescind t he cont ract if t he main purpose of t he lease is t o provide a dwelling place for t he lessee. (1558a) Art . 1663. The lessee is obliged t o bring t o t he knowledge of t he propriet or, wit hin t he short est possible t ime, every usurpat ion or unt oward act which any t hird person may have commit t ed or may be openly preparing t o carry out upon t he t hing leased. He is also obliged t o advise t he owner, wit h t he same urgency , of t he need of all repairs included in No. 2 of Art icle 1654. In bot h cases t he lessee shall be liable for t he damages which, t hrough his negligence, may be suffered by t he propriet or. If t he lessor fails t o make urgent repairs, t he lessee, in order t o avoid an imminent danger, may order t he repairs at t he lessor's cost . (1559a) Art . 1664. The lessor is not obliged t o answer for a mere act of t respass which a t hird person may cause on t he use of t he t hing leased; but t he lessee shall have a direct act ion against t he int ruder. There is a mere act of t respass when t he t hird person claims no right what ever. (1560a) Art . 1665. The lessee shall ret urn t he t hing leased, upon t he t erminat ion of t he lease, as he received it , save what has been lost or impaired by t he lapse of t ime, or by ordinary wear and t ear, or from an inevit able cause. (1561a) Art . 1666. In t he absence of a st at ement concerning t he condit ion of t he t hing at t he t ime t he lease was const it ut ed, t he law presumes t hat t he lessee received it in good condit ion, unless t here is proof t o t he cont rary . (1562) Art . 1667 . The lessee is responsible for t he det eriorat ion or loss of t he t hing leased, unless he proves t hat it t ook place wit hout his fault . This burden of proof on t he lessee does not apply when t he dest ruct ion is due t o eart hquake, flood, st orm or ot her nat ural calamit y . (1563a) Art . 1668. The lessee is liable for any det eriorat ion caused by members of his household and by guest s and visit ors. (1564a) Art . 1669. If t he lease was made for a det erminat e t ime, it ceases upon t he day fixed, wit hout t he need of a demand. (1565) Art . 167 0. If at t he end of t he cont ract t he lessee should cont inue enjoy ing t he t hing leased for fift een day s wit h t he acquiescence of t he lessor, and unless a not ice t o t he cont rary by eit her part y has previously been given, it is underst ood t hat t here is an implied new lease, not for t he period of t he original cont ract , but for t he t ime est ablished in Art icles 1682 and 1687 . The ot her t erms of t he original cont ract shall be revived. (1566a) Art . 167 1. If t he lessee cont inues enjoy ing t he t hing aft er t he expirat ion of t he cont ract , over t he lessor's object ion, t he former shall be subject t o t he responsibilit ies of a possessor in bad fait h. (n) Art . 167 2. In case of an implied new lease, t he obligat ions cont ract ed by a t hird person for t he securit y of t he principal
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cont ract shall cease wit h respect t o t he new lease. (1567 ) Art . 167 3. The lessor may judicially eject t he lessee for any of t he following causes: (1) When t he period agreed upon, or t hat which is fixed for t he durat ion of leases under Art icles 1682 and 1687 , has expired; (2) Lack of pay ment of t he price st ipulat ed; (3) Violat ion of any of t he condit ions agreed upon in t he cont ract ; (4) When t he lessee devot es t he t hing leased t o any use or service not st ipulat ed which causes t he det eriorat ion t hereof; or if he does not observe t he requirement in No. 2 of Art icle 1657 , as regards t he use t hereof. The eject ment of t enant s of agricult ural lands is governed by special laws. (1569a) Art . 167 4. In eject ment cases where an appeal is t aken t he remedy grant ed in Art icle 539, second paragraph, shall also apply , if t he higher court is sat isfied t hat t he lessee's appeal is frivolous or dilat ory , or t hat t he lessor's appeal is prima facie merit orious. The period of t en day s referred t o in said art icle shall be count ed from t he t ime t he appeal is perfect ed. (n) Art . 167 5. Except in cases st at ed in Art icle 167 3, t he lessee shall have a right t o make use of t he periods est ablished in Art icles 1682 and 1687 . (157 0) Art . 167 6. The purchaser of a piece of land which is under a lease t hat is not recorded in t he Regist ry of Propert y may t erminat e t he lease, save when t here is a st ipulat ion t o t he cont rary in t he cont ract of sale, or when t he purchaser knows of t he exist ence of t he lease. If t he buy er makes use of t his right , t he lessee may demand t hat he be allowed t o gat her t he fruit s of t he harvest which corresponds t o t he current agricult ural y ear and t hat t he vendor indemnify him for damages suffered. If t he sale is fict it ious, for t he purpose of ext inguishing t he lease, t he supposed vendee cannot make use of t he right grant ed in t he first paragraph of t his art icle. The sale is presumed t o be fict it ious if at t he t ime t he supposed vendee demands t he t erminat ion of t he lease, t he sale is not recorded in t he Regist ry of Propert y . (157 1a) Art . 167 7 . The purchaser in a sale wit h t he right of redempt ion cannot make use of t he power t o eject t he lessee unt il t he end of t he period for t he redempt ion. (157 2) Art . 167 8. If t he lessee makes, in good fait h, useful improvement s which are suit able t o t he use for which t he lease is int ended, wit hout alt ering t he form or subst ance of t he propert y leased, t he lessor upon t he t erminat ion of t he lease shall pay t he lessee one-half of t he value of t he improvement s at t hat t ime. Should t he lessor refuse t o reimburse said amount , t he lessee may remove t he improvement s, even t hough t he principal t hing may suffer damage t hereby . He shall not , however, cause any more impairment upon t he propert y leased t han is necessary . Wit h regard t o ornament al expenses, t he lessee shall not be ent it led t o any reimbursement , but he may remove t he ornament al object s, provided no damage is caused t o t he principal t hing, and t he lessor does not choose t o ret ain t hem by pay ing t heir value at t he t ime t he lease is ext inguished. (n) Art . 167 9. If not hing has been st ipulat ed concerning t he place and t he t ime for t he pay ment of t he lease, t he provisions or Art icle 1251 shall be observed as regards t he place; and wit h respect t o t he t ime, t he cust om of t he place shall be followed. (157 4) SECTION 3. - Special Provisions for Leases of Rural Lands Art . 1680. The lessee shall have no right t o a reduct ion of t he rent on account of t he st erilit y of t he land leased, or by reason of t he loss of fruit s due t o ordinary fort uit ous event s; but he shall have such right in case of t he loss of more t han one-half of t he fruit s t hrough ext raordinary and unforeseen fort uit ous event s, save alway s when t here is a specific st ipulat ion t o t he cont rary . Ext raordinary fort uit ous event s are underst ood t o be: fire, war, pest ilence, unusual flood, locust s, eart hquake, or ot hers which are uncommon, and which t he cont ract ing part ies could not have reasonably foreseen. (157 5) Art . 1681. Neit her does t he lessee have any right t o a reduct ion of t he rent if t he fruit s are lost aft er t hey have been separat ed from t heir st alk, root or t runk. (157 6) Art . 1682. The lease of a piece of rural land, when it s durat ion has not been fixed, is underst ood t o have been for all t he t ime necessary for t he gat hering of t he fruit s which t he whole est at e leased may y ield in one y ear, or which it may y ield once, alt hough t wo or more y ears have t o elapse for t he purpose. (157 7 a) Art . 1683. The out going lessee shall allow t he incoming lessee or t he lessor t he use of t he premises and ot her means necessary for t he preparat ory labor for t he following y ear; and, reciprocally , t he incoming lessee or t he lessor is under obligat ion t o permit t he out going lessee t o do what ever may be necessary for t he gat hering or harvest ing and
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ut ilizat ion of t he fruit s, all in accordance wit h t he cust om of t he place. (157 8a) Art . 1684. Land t enancy on shares shall be governed by special laws, t he st ipulat ions of t he part ies, t he provisions on part nership and by t he cust oms of t he place. (157 9a) Art . 1685. The t enant on shares cannot be eject ed except in cases specified by law. (n) SECTION 4. - Special Provisions of t he Lease of Urban Lands Art . 1686. In default of a special st ipulat ion, t he cust om of t he place shall be observed wit h regard t o t he kind of repairs on urban propert y for which t he lessor shall be liable. In case of doubt it is underst ood t hat t he repairs are chargeable against him. (1580a) Art . 1687 . If t he period for t he lease has not been fixed, it is underst ood t o be from y ear t o y ear, if t he rent agreed upon is annual; from mont h t o mont h, if it is mont hly ; from week t o week, if t he rent is weekly ; and from day t o day , if t he rent is t o be paid daily . However, even t hough a mont hly rent is paid, and no period for t he lease has been set , t he court s may fix a longer t erm for t he lease aft er t he lessee has occupied t he premises for over one y ear. If t he rent is weekly , t he court s may likewise det ermine a longer period aft er t he lessee has been in possession for over six mont hs. In case of daily rent , t he court s may also fix a longer period aft er t he lessee has st ay ed in t he place for over one mont h. (1581a) Art . 1688. When t he lessor of a house, or part t hereof, used as a dwelling for a family , or when t he lessor of a st ore, or indust rial est ablishment , also leases t he furnit ure, t he lease of t he lat t er shall be deemed t o be for t he durat ion of t he lease of t he premises. (1582) CHAPTER 3 WORK AND LABOR SECTION 1. - Household Service (n) Art . 1689. Household service shall alway s be reasonably compensat ed. Any st ipulat ion t hat household service is wit hout compensat ion shall be void. Such compensat ion shall be in addit ion t o t he house helper's lodging, food, and medical at t endance. Art . 1690. The head of t he family shall furnish, free of charge, t o t he house helper, suit able and sanit ary quart ers as well as adequat e food and medical at t endance. Art . 1691. If t he house helper is under t he age of eight een y ears, t he head of t he family shall give an opport unit y t o t he house helper for at least element ary educat ion. The cost of such educat ion shall be a part of t he house helper's compensat ion, unless t here is a st ipulat ion t o t he cont rary . Art . 1692. No cont ract for household service shall last for more t han t wo y ears. However, such cont ract may be renewed from y ear t o y ear. Art . 1693. The house helper's clot hes shall be subject t o st ipulat ion. However, any cont ract for household service shall be void if t hereby t he house helper cannot afford t o acquire suit able clot hing. Art . 1694. The head of t he family shall t reat t he house helper in a just and humane manner. In no case shall phy sical violence be used upon t he house helper. Art . 1695. House helper shall not be required t o work more t han t en hours a day . Every house helper shall be allowed four day s' vacat ion each mont h, wit h pay . Art . 1696. In case of deat h of t he house helper, t he head of t he family shall bear t he funeral expenses if t he house helper has no relat ives in t he place where t he head of t he family lives, wit h sufficient means t herefor. Art . 1697 . If t he period for household service is fixed neit her t he head of t he family nor t he house helper may t erminat e t he cont ract before t he expirat ion of t he t erm, except for a just cause. If t he house helper is unjust ly dismissed, he shall be paid t he compensat ion already earned plus t hat for fift een day s by way of indemnit y . If t he house helper leaves wit hout just ifiable reason, he shall forfeit any salary due him and unpaid, for not exceeding fift een day s. Art . 1698. If t he durat ion of t he household service is not det ermined eit her by st ipulat ion or by t he nat ure of t he service, t he head of t he family or t he house helper may give not ice t o put an end t o t he service relat ion, according t o t he following rules: (1) If t he compensat ion is paid by t he day , not ice may be given on any day t hat t he service shall end at t he close of t he following day ; (2) If t he compensat ion is paid by t he week, not ice may be given, at t he lat est on t he first business day of t he week, t hat t he service shall be t erminat ed at t he end of t he sevent h day from t he beginning of t he week;
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(3) If t he compensat ion is paid by t he mont h, not ice may be given, at t he lat est , on t he fift h day of t he mont h, t hat t he service shall cease at t he end of t he mont h. Art . 1699. Upon t he ext inguishment of t he service relat ion, t he house helper may demand from t he head of t he family a writ t en st at ement on t he nat ure and durat ion of t he service and t he efficiency and conduct of t he house helper. SECTION 2. - Cont ract of Labor (n) Art . 17 00. The relat ions bet ween capit al and labor are not merely cont ract ual. They are so impressed wit h public int erest t hat labor cont ract s must y ield t o t he common good. Therefore, such cont ract s are subject t o t he special laws on labor unions, collect ive bargaining, st rikes and lockout s, closed shop, wages, working condit ions, hours of labor and similar subject s. Art . 17 01. Neit her capit al nor labor shall act oppressively against t he ot her, or impair t he int erest or convenience of t he public. Art . 17 02. In case of doubt , all labor legislat ion and all labor cont ract s shall be const rued in favor of t he safet y and decent living for t he laborer. Art . 17 03. No cont ract which pract ically amount s t o involunt ary servit ude, under any guise what soever, shall be valid. Art . 17 04. In collect ive bargaining, t he labor union or members of t he board or commit t ee signing t he cont ract shall be liable for non-fulfillment t hereof. Art . 17 05. The laborer's wages shall be paid in legal currency . Art . 17 06. Wit hholding of t he wages, except for a debt due, shall not be made by t he employ er. Art . 17 07 . The laborer's wages shall be a lien on t he goods manufact ured or t he work done. Art . 17 08. The laborer's wages shall not be subject t o execut ion or at t achment , except for debt s incurred for food, shelt er, clot hing and medical at t endance. Art . 17 09. The employ er shall neit her seize nor ret ain any t ool or ot her art icles belonging t o t he laborer. Art . 17 10. Dismissal of laborers shall be subject t o t he supervision of t he Government , under special laws. Art . 17 11. Owners of ent erprises and ot her employ ers are obliged t o pay compensat ion for t he deat h of or injuries t o t heir laborers, workmen, mechanics or ot her employ ees, even t hough t he event may have been purely accident al or ent irely due t o a fort uit ous cause, if t he deat h or personal injury arose out of and in t he course of t he employ ment . The employ er is also liable for compensat ion if t he employ ee cont ract s any illness or disease caused by such employ ment or as t he result of t he nat ure of t he employ ment . If t he mishap was due t o t he employ ee's own not orious negligence, or volunt ary act , or drunkenness, t he employ er shall not be liable for compensat ion. When t he employ ee's lack of due care cont ribut ed t o his deat h or injury , t he compensat ion shall be equit ably reduced. Art . 17 12. If t he deat h or injury is due t o t he negligence of a fellow worker, t he lat t er and t he employ er shall be solidarily liable for compensat ion. If a fellow worker's int ent ional malicious act is t he only cause of t he deat h or injury , t he employ er shall not be answerable, unless it should be shown t hat t he lat t er did not exercise due diligence in t he select ion or supervision of t he plaint iff's fellow worker. SECTION 3. - Cont ract for a Piece of Work Art . 17 13. By t he cont ract for a piece of work t he cont ract or binds himself t o execut e a piece of work for t he employ er, in considerat ion of a cert ain price or compensat ion. The cont ract or may eit her employ only his labor or skill, or also furnish t he mat erial. (1588a) Art . 17 14. If t he cont ract or agrees t o produce t he work from mat erial furnished by him, he shall deliver t he t hing produced t o t he employ er and t ransfer dominion over t he t hing. This cont ract shall be governed by t he following art icles as well as by t he pert inent provisions on warrant y of t it le and against hidden defect s and t he pay ment of price in a cont ract of sale. (n) Art . 17 15. The cont ract shall execut e t he work in such a manner t hat it has t he qualit ies agreed upon and has no defect s which dest roy or lessen it s value or fit ness for it s ordinary or st ipulat ed use. Should t he work be not of such qualit y , t he employ er may require t hat t he cont ract or remove t he defect or execut e anot her work. If t he cont ract fails or refuses t o comply wit h t his obligat ion, t he employ er may have t he defect removed or anot her work execut ed, at t he cont ract or's cost . (n) Art . 17 16. An agreement waiving or limit ing t he cont ract or's liabilit y for any defect in t he work is void if t he cont ract or act ed fraudulent ly . (n) Art . 17 17 . If t he cont ract or bound himself t o furnish t he mat erial, he shall suffer t he loss if t he work should be
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dest roy ed before it s delivery , save when t here has been delay in receiving it . (1589) Art . 17 18. The cont ract or who has undert aken t o put only his work or skill, cannot claim any compensat ion if t he work should be dest roy ed before it s delivery , unless t here has been delay in receiving it , or if t he dest ruct ion was caused by t he poor qualit y of t he mat erial, provided t his fact was communicat ed in due t ime t o t he owner. If t he mat erial is lost t hrough a fort uit ous event , t he cont ract is ext inguished. (1590a) Art . 17 19. Accept ance of t he work by t he employ er relieves t he cont ract or of liabilit y for any defect in t he work, unless: (1) The defect is hidden and t he employ er is not , by his special knowledge, expect ed t o recognize t he same; or (2) The employ er expressly reserves his right s against t he cont ract or by reason of t he defect . (n) Art . 17 20. The price or compensat ion shall be paid at t he t ime and place of delivery of t he work, unless t here is a st ipulat ion t o t he cont rary . If t he work is t o be delivered part ially , t he price or compensat ion for each part having been fixed, t he sum shall be paid at t he t ime and place of delivery , in t he absence if st ipulat ion. (n) Art . 17 21. If, in t he execut ion of t he work, an act of t he employ er is required, and he incurs in delay or fails t o perform t he act , t he cont ract or is ent it led t o a reasonable compensat ion. The amount of t he compensat ion is comput ed, on t he one hand, by t he durat ion of t he delay and t he amount of t he compensat ion st ipulat ed, and on t he ot her hand, by what t he cont ract or has saved in expenses by reason of t he delay or is able t o earn by a different employ ment of his t ime and indust ry . (n) Art . 17 22. If t he work cannot be complet ed on account of a defect in t he mat erial furnished by t he employ er, or because of orders from t he employ er, wit hout any fault on t he part of t he cont ract or, t he lat t er has a right t o an equit able part of t he compensat ion proport ionally t o t he work done, and reimbursement for proper expenses made. (n) Art . 17 23. The engineer or archit ect who drew up t he plans and specificat ions for a building is liable for damages if wit hin fift een y ears from t he complet ion of t he st ruct ure, t he same should collapse by reason of a defect in t hose plans and specificat ions, or due t o t he defect s in t he ground. The cont ract or is likewise responsible for t he damages if t he edifice falls, wit hin t he same period, on account of defect s in t he const ruct ion or t he use of mat erials of inferior qualit y furnished by him, or due t o any violat ion of t he t erms of t he cont ract . If t he engineer or archit ect supervises t he const ruct ion, he shall be solidarily liable wit h t he cont ract or. Accept ance of t he building, aft er complet ion, does not imply waiver of any of t he cause of act ion by reason of any defect ment ioned in t he preceding paragraph. The act ion must be brought wit hin t en y ears following t he collapse of t he building. (n) Art . 17 24. The cont ract or who undert akes t o build a st ruct ure or any ot her work for a st ipulat ed price, in conformit y wit h plans and specificat ions agreed upon wit h t he land-owner, can neit her wit hdraw from t he cont ract nor demand an increase in t he price on account of t he higher cost of labor or mat erials, save when t here has been a change in t he plans and specificat ions, provided: (1) Such change has been aut horized by t he propriet or in writ ing; and (2) The addit ional price t o be paid t o t he cont ract or has been det ermined in writ ing by bot h part ies. (1593a) Art . 17 25. The owner may wit hdraw at will from t he const ruct ion of t he work, alt hough it may have been commenced, indemnify ing t he cont ract or for all t he lat t er's expenses, work, and t he usefulness which t he owner may obt ain t herefrom, and damages. (1594a) Art . 17 26. When a piece of work has been ent rust ed t o a person by reason of his personal qualificat ions, t he cont ract is rescinded upon his deat h. In t his case t he propriet or shall pay t he heirs of t he cont ract or in proport ion t o t he price agreed upon, t he value of t he part of t he work done, and of t he mat erials prepared, provided t he lat t er y ield him some benefit . The same rule shall apply if t he cont ract or cannot finish t he work due t o circumst ances bey ond his cont rol. (1595) Art . 17 27 . The cont ract or is responsible for t he work done by persons employ ed by him. (1596) Art . 17 28. The cont ract or is liable for all t he claims of laborers and ot hers employ ed by him, and of t hird persons for deat h or phy sical injuries during t he const ruct ion. (n) Art . 17 29. Those who put t heir labor upon or furnish mat erials for a piece of work undert aken by t he cont ract or have an act ion against t he owner up t o t he amount owing from t he lat t er t o t he cont ract or at t he t ime t he claim is made. However, t he following shall not prejudice t he laborers, employ ees and furnishers of mat erials: (1) Pay ment s made by t he owner t o t he cont ract or before t hey are due; (2) Renunciat ion by t he cont ract or of any amount due him from t he owner.
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This art icle is subject t o t he provisions of special laws. (1597 a) Art . 17 30. If it is agreed t hat t he work shall be accomplished t o t he sat isfact ion of t he propriet or, it is underst ood t hat in case of disagreement t he quest ion shall be subject t o expert judgment . If t he work is subject t o t he approval of a t hird person, his decision shall be final, except in case of fraud or manifest error. (1598a) Art . 17 31. He who has execut ed work upon a movable has a right t o ret ain it by way of pledge unt il he is paid. (1600) SECTION 4. - Common Carriers (n) SUBSECTION 1. - General Provisions Art . 17 32. Common carriers are persons, corporat ions, firms or associat ions engaged in t he business of carry ing or t ransport ing passengers or goods or bot h, by land, wat er, or air, for compensat ion, offering t heir services t o t he public. Art . 17 33. Common carriers, from t he nat ure of t heir business and for reasons of public policy , are bound t o observe ext raordinary diligence in t he vigilance over t he goods and for t he safet y of t he passengers t ransport ed by t hem, according t o all t he circumst ances of each case. Such ext raordinary diligence in t he vigilance over t he goods is furt her expressed in Art icles 17 34, 17 35, and 17 45, Nos. 5, 6, and 7 , while t he ext raordinary diligence for t he safet y of t he passengers is furt her set fort h in Art icles 17 55 and 17 56. SUBSECTION 2. - Vigilance Over Goods Art . 17 34. Common carriers are responsible for t he loss, dest ruct ion, or det eriorat ion of t he goods, unless t he same is due t o any of t he following causes only : (1) Flood, st orm, eart hquake, light ning, or ot her nat ural disast er or calamit y ; (2) Act of t he public enemy in war, whet her int ernat ional or civil; (3) Act of omission of t he shipper or owner of t he goods; (4) The charact er of t he goods or defect s in t he packing or in t he cont ainers; (5) Order or act of compet ent public aut horit y . Art . 17 35. In all cases ot her t han t hose ment ioned in Nos. 1, 2, 3, 4, and 5 of t he preceding art icle, if t he goods are lost , dest roy ed or det eriorat ed, common carriers are presumed t o have been at fault or t o have act ed negligent ly , unless t hey prove t hat t hey observed ext raordinary diligence as required in Art icle 17 33. Art . 17 36. The ext raordinary responsibilit y of t he common carrier last s from t he t ime t he goods are uncondit ionally placed in t he possession of, and received by t he carrier for t ransport at ion unt il t he same are delivered, act ually or const ruct ively , by t he carrier t o t he consignee, or t o t he person who has a right t o receive t hem, wit hout prejudice t o t he provisions of Art icle 17 38. Art . 17 37 . The common carrier's dut y t o observe ext raordinary diligence over t he goods remains in full force and effect even when t hey are t emporarily unloaded or st ored in t ransit , unless t he shipper or owner has made use of t he right of st oppage in transitu. Art . 17 38. The ext raordinary liabilit y of t he common carrier cont inues t o be operat ive even during t he t ime t he goods are st ored in a warehouse of t he carrier at t he place of dest inat ion, unt il t he consignee has been advised of t he arrival of t he goods and has had reasonable opport unit y t hereaft er t o remove t hem or ot herwise dispose of t hem. Art . 17 39. In order t hat t he common carrier may be exempt ed from responsibilit y , t he nat ural disast er must have been t he proximat e and only cause of t he loss. However, t he common carrier must exercise due diligence t o prevent or minimize loss before, during and aft er t he occurrence of flood, st orm or ot her nat ural disast er in order t hat t he common carrier may be exempt ed from liabilit y for t he loss, dest ruct ion, or det eriorat ion of t he goods. The same dut y is incumbent upon t he common carrier in case of an act of t he public enemy referred t o in Art icle 17 34, No. 2. Art . 17 40. If t he common carrier negligent ly incurs in delay in t ransport ing t he goods, a nat ural disast er shall not free such carrier from responsibilit y . Art . 17 41. If t he shipper or owner merely cont ribut ed t o t he loss, dest ruct ion or det eriorat ion of t he goods, t he proximat e cause t hereof being t he negligence of t he common carrier, t he lat t er shall be liable in damages, which however, shall be equit ably reduced. Art . 17 42. Even if t he loss, dest ruct ion, or det eriorat ion of t he goods should be caused by t he charact er of t he goods, or
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t he fault y nat ure of t he packing or of t he cont ainers, t he common carrier must exercise due diligence t o forest all or lessen t he loss. Art . 17 43. If t hrough t he order of public aut horit y t he goods are seized or dest roy ed, t he common carrier is not responsible, provided said public aut horit y had power t o issue t he order. Art . 17 44. A st ipulat ion bet ween t he common carrier and t he shipper or owner limit ing t he liabilit y of t he former for t he loss, dest ruct ion, or det eriorat ion of t he goods t o a degree less t han ext raordinary diligence shall be valid, provided it be: (1) In writ ing, signed by t he shipper or owner; (2) Support ed by a valuable considerat ion ot her t han t he service rendered by t he common carrier; and (3) Reasonable, just and not cont rary t o public policy . Art . 17 45. Any of t he following or similar st ipulat ions shall be considered unreasonable, unjust and cont rary t o public policy : (1) That t he goods are t ransport ed at t he risk of t he owner or shipper; (2) That t he common carrier will not be liable for any loss, dest ruct ion, or det eriorat ion of t he goods; (3) That t he common carrier need not observe any diligence in t he cust ody of t he goods; (4) That t he common carrier shall exercise a degree of diligence less t han t hat of a good fat her of a family , or of a man of ordinary prudence in t he vigilance over t he movables t ransport ed; (5) That t he common carrier shall not be responsible for t he act s or omission of his or it s employ ees; (6) That t he common carrier's liabilit y for act s commit t ed by t hieves, or of robbers who do not act wit h grave or irresist ible t hreat , violence or force, is dispensed wit h or diminished; (7 ) That t he common carrier is not responsible for t he loss, dest ruct ion, or det eriorat ion of goods on account of t he defect ive condit ion of t he car, vehicle, ship, airplane or ot her equipment used in t he cont ract of carriage. Art . 17 46. An agreement limit ing t he common carrier's liabilit y may be annulled by t he shipper or owner if t he common carrier refused t o carry t he goods unless t he former agreed t o such st ipulat ion. Art . 17 47 . If t he common carrier, wit hout just cause, delay s t he t ransport at ion of t he goods or changes t he st ipulat ed or usual rout e, t he cont ract limit ing t he common carrier's liabilit y cannot be availed of in case of t he loss, dest ruct ion, or det eriorat ion of t he goods. Art . 17 48. An agreement limit ing t he common carrier's liabilit y for delay on account of st rikes or riot s is valid. Art . 17 49. A st ipulat ion t hat t he common carrier's liabilit y is limit ed t o t he value of t he goods appearing in t he bill of lading, unless t he shipper or owner declares a great er value, is binding. Art . 17 50. A cont ract fixing t he sum t hat may be recovered. by t he owner or shipper for t he loss, dest ruct ion, or det eriorat ion of t he goods is valid, if it is reasonable and just under t he circumst ances, and has been fairly and freely agreed upon. Art . 17 51. The fact t hat t he common carrier has no compet it or along t he line or rout e, or a part t hereof, t o which t he cont ract refers shall be t aken int o considerat ion on t he quest ion of whet her or not a st ipulat ion limit ing t he common carrier's liabilit y is reasonable, just and in consonance wit h public policy . Art . 17 52. Even when t here is an agreement limit ing t he liabilit y of t he common carrier in t he vigilance over t he goods, t he common carrier is disput ably presumed t o have been negligent in case of t heir loss, dest ruct ion or det eriorat ion. Art . 17 53. The law of t he count ry t o which t he goods are t o be t ransport ed shall govern t he liabilit y of t he common carrier for t heir loss, dest ruct ion or det eriorat ion. Art . 17 54. The provisions of Art icles 17 33 t o 17 53 shall apply t o t he passenger's baggage which is not in his personal cust ody or in t hat of his employ ee. As t o ot her baggage, t he rules in Art icles 1998 and 2000 t o 2003 concerning t he responsibilit y of hot el-keepers shall be applicable. SUBSECTION 3. - Safet y of Passengers Art . 17 55. A common carrier is bound t o carry t he passengers safely as far as human care and foresight can provide, using t he ut most diligence of very caut ious persons, wit h a due regard for all t he circumst ances. Art . 17 56. In case of deat h of or injuries t o passengers, common carriers are presumed t o have been at fault or t o have
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act ed negligent ly , unless t hey prove t hat t hey observed ext raordinary diligence as prescribed in Art icles 17 33 and 17 55. Art . 17 57 . The responsibilit y of a common carrier for t he safet y of passengers as required in Art icles 17 33 and 17 55 cannot be dispensed wit h or lessened by st ipulat ion, by t he post ing of not ices, by st at ement s on t icket s, or ot herwise. Art . 17 58. When a passenger is carried grat uit ously , a st ipulat ion limit ing t he common carrier's liabilit y for negligence is valid, but not for wilful act s or gross negligence. The reduct ion of fare does not just ify any limit at ion of t he common carrier's liabilit y . Art . 17 59. Common carriers are liable for t he deat h of or injuries t o passengers t hrough t he negligence or wilful act s of t he former's employ ees, alt hough such employ ees may have act ed bey ond t he scope of t heir aut horit y or in violat ion of t he orders of t he common carriers. This liabilit y of t he common carriers does not cease upon proof t hat t hey exercised all t he diligence of a good fat her of a family in t he select ion and supervision of t heir employ ees. Art . 17 60. The common carrier's responsibilit y prescribed in t he preceding art icle cannot be eliminat ed or limit ed by st ipulat ion, by t he post ing of not ices, by st at ement s on t he t icket s or ot herwise. Art . 17 61. The passenger must observe t he diligence of a good fat her of a family t o avoid injury t o himself. Art . 17 62. The cont ribut ory negligence of t he passenger does not bar recovery of damages for his deat h or injuries, if t he proximat e cause t hereof is t he negligence of t he common carrier, but t he amount of damages shall be equit ably reduced. Art . 17 63. A common carrier is responsible for injuries suffered by a passenger on account of t he wilful act s or negligence of ot her passengers or of st rangers, if t he common carrier's employ ees t hrough t he exercise of t he diligence of a good fat her of a family could have prevent ed or st opped t he act or omission. SUBSECTION 4. - Common Provisions Art . 17 64. Damages in cases comprised in t his Sect ion shall be awarded in accordance wit h Tit le XVIII of t his Book, concerning Damages. Art icle 2206 shall also apply t o t he deat h of a passenger caused by t he breach of cont ract by a common carrier. Art . 17 65. The Public Service Commission may , on it s own mot ion or on pet it ion of any int erest ed part y , aft er due hearing, cancel t he cert ificat e of public convenience grant ed t o any common carrier t hat repeat edly fails t o comply wit h his or it s dut y t o observe ext raordinary diligence as prescribed in t his Sect ion. Art . 17 66. In all mat t ers not regulat ed by t his Code, t he right s and obligat ions of common carriers shall be governed by t he Code of Commerce and by special laws. Tit le IX. - PARTNERSHIP CHAPTER 1 GENERAL PROVISIONS Art . 17 67 . By t he cont ract of part nership t wo or more persons bind t hemselves t o cont ribut e money , propert y , or indust ry t o a common fund, wit h t he int ent ion of dividing t he profit s among t hemselves. Two or more persons may also form a part nership for t he exercise of a profession. (1665a) Art . 17 68. The part nership has a judicial personalit y separat e and dist inct from t hat of each of t he part ners, even in case of failure t o comply wit h t he requirement s of Art icle 17 7 2, first paragraph. (n) Art . 17 69. In det ermining whet her a part nership exist s, t hese rules shall apply : (1) Except as provided by Art icle 1825, persons who are not part ners as t o each ot her are not part ners as t o t hird persons; (2) Co-ownership or co-possession does not of it self est ablish a part nership, whet her such-co-owners or copossessors do or do not share any profit s made by t he use of t he propert y ; (3) The sharing of gross ret urns does not of it self est ablish a part nership, whet her or not t he persons sharing t hem have a joint or common right or int erest in any propert y from which t he ret urns are derived; (4) The receipt by a person of a share of t he profit s of a business is prima facie evidence t hat he is a part ner in t he business, but no such inference shall be drawn if such profit s were received in pay ment :
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(a) As a debt by inst allment s or ot herwise; (b) As wages of an employ ee or rent t o a landlord; (c) As an annuit y t o a widow or represent at ive of a deceased part ner; (d) As int erest on a loan, t hough t he amount of pay ment vary wit h t he profit s of t he business; (e) As t he considerat ion for t he sale of a goodwill of a business or ot her propert y by inst allment s or ot herwise. (n) Art . 17 7 0. A part nership must have a lawful object or purpose, and must be est ablished for t he common benefit or int erest of t he part ners. When an unlawful part nership is dissolved by a judicial decree, t he profit s shall be confiscat ed in favor of t he St at e, wit hout prejudice t o t he provisions of t he Penal Code governing t he confiscat ion of t he inst rument s and effect s of a crime. (1666a) Art . 17 7 1. A part nership may be const it ut ed in any form, except where immovable propert y or real right s are cont ribut ed t heret o, in which case a public inst rument shall be necessary . (1667 a) Art . 17 7 2. Every cont ract of part nership having a capit al of t hree t housand pesos or more, in money or propert y , shall appear in a public inst rument , which must be recorded in t he Office of t he Securit ies and Exchange Commission. Failure t o comply wit h t he requirement s of t he preceding paragraph shall not affect t he liabilit y of t he part nership and t he members t hereof t o t hird persons. (n) Art . 17 7 3. A cont ract of part nership is void, whenever immovable propert y is cont ribut ed t heret o, if an invent ory of said propert y is not made, signed by t he part ies, and at t ached t o t he public inst rument . (1668a) Art . 17 7 4. Any immovable propert y or an int erest t herein may be acquired in t he part nership name. Tit le so acquired can be convey ed only in t he part nership name. (n) Art . 17 7 5. Associat ions and societ ies, whose art icles are kept secret among t he members, and wherein any one of t he members may cont ract in his own name wit h t hird persons, shall have no juridical personalit y , and shall be governed by t he provisions relat ing t o co-ownership. (1669) Art . 17 7 6. As t o it s object , a part nership is eit her universal or part icular. As regards t he liabilit y of t he part ners, a part nership may be general or limit ed. (167 1a) Art . 17 7 7 . A universal part nership may refer t o all t he present propert y or t o all t he profit s. (167 2) Art . 17 7 8. A part nership of all present propert y is t hat in which t he part ners cont ribut e all t he propert y which act ually belongs t o t hem t o a common fund, wit h t he int ent ion of dividing t he same among t hemselves, as well as all t he profit s which t hey may acquire t herewit h. (167 3) Art . 17 7 9. In a universal part nership of all present propert y , t he propert y which belongs t o each of t he part ners at t he t ime of t he const it ut ion of t he part nership, becomes t he common propert y of all t he part ners, as well as all t he profit s which t hey may acquire t herewit h. A st ipulat ion for t he common enjoy ment of any ot her profit s may also be made; but t he propert y which t he part ners may acquire subsequent ly by inherit ance, legacy , or donat ion cannot be included in such st ipulat ion, except t he fruit s t hereof. (167 4a) Art . 17 80. A universal part nership of profit s comprises all t hat t he part ners may acquire by t heir indust ry or work during t he exist ence of t he part nership. Movable or immovable propert y which each of t he part ners may possess at t he t ime of t he celebrat ion of t he cont ract shall cont inue t o pert ain exclusively t o each, only t he usufruct passing t o t he part nership. (167 5) Art . 17 81. Art icles of universal part nership, ent ered int o wit hout specificat ion of it s nat ure, only const it ut e a universal part nership of profit s. (167 6) Art . 17 82. Persons who are prohibit ed from giving each ot her any donat ion or advant age cannot ent er int o universal part nership. (167 7 ) Art . 17 83. A part icular part nership has for it s object det erminat e t hings, t heir use or fruit s, or specific undert aking, or t he exercise of a profession or vocat ion. (167 8) CHAPTER 2 OBLIGATIONS OF THE PARTNERS SECTION 1. - Obligat ions of t he Part ners Among Themselves
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Art . 17 84. A part nership begins from t he moment of t he execut ion of t he cont ract , unless it is ot herwise st ipulat ed. (167 9) Art . 17 85. When a part nership for a fixed t erm or part icular undert aking is cont inued aft er t he t erminat ion of such t erm or part icular undert aking wit hout any express agreement , t he right s and dut ies of t he part ners remain t he same as t hey were at such t erminat ion, so far as is consist ent wit h a part nership at will. A cont inuat ion of t he business by t he part ners or such of t hem as habit ually act ed t herein during t he t erm, wit hout any set t lement or liquidat ion of t he part nership affairs, is prima facie evidence of a cont inuat ion of t he part nership. (n) Art . 17 86. Every part ner is a debt or of t he part nership for what ever he may have promised t o cont ribut e t heret o. He shall also be bound for warrant y in case of evict ion wit h regard t o specific and det erminat e t hings which he may have cont ribut ed t o t he part nership, in t he same cases and in t he same manner as t he vendor is bound wit h respect t o t he vendee. He shall also be liable for t he fruit s t hereof from t he t ime t hey should have been delivered, wit hout t he need of any demand. (1681a) Art . 17 87 . When t he capit al or a part t hereof which a part ner is bound t o cont ribut e consist s of goods, t heir appraisal must be made in t he manner prescribed in t he cont ract of part nership, and in t he absence of st ipulat ion, it shall be made by expert s chosen by t he part ners, and according t o current prices, t he subsequent changes t hereof being for account of t he part nership. (n) Art . 17 88. A part ner who has undert aken t o cont ribut e a sum of money and fails t o do so becomes a debt or for t he int erest and damages from t he t ime he should have complied wit h his obligat ion. The same rule applies t o any amount he may have t aken from t he part nership coffers, and his liabilit y shall begin from t he t ime he convert ed t he amount t o his own use. (1682) Art . 17 89. An indust rial part ner cannot engage in business for himself, unless t he part nership expressly permit s him t o do so; and if he should do so, t he capit alist part ners may eit her exclude him from t he firm or avail t hemselves of t he benefit s which he may have obt ained in violat ion of t his provision, wit h a right t o damages in eit her case. (n) Art . 17 90. Unless t here is a st ipulat ion t o t he cont rary , t he part ners shall cont ribut e equal shares t o t he capit al of t he part nership. (n) Art . 17 91. If t here is no agreement t o t he cont rary , in case of an imminent loss of t he business of t he part nership, any part ner who refuses t o cont ribut e an addit ional share t o t he capit al, except an indust rial part ner, t o save t he vent ure, shall he obliged t o sell his int erest t o t he ot her part ners. (n) Art . 17 92. If a part ner aut horized t o manage collect s a demandable sum which was owed t o him in his own name, from a person who owed t he part nership anot her sum also demandable, t he sum t hus collect ed shall be applied t o t he t wo credit s in proport ion t o t heir amount s, even t hough he may have given a receipt for his own credit only ; but should he have given it for t he account of t he part nership credit , t he amount shall be fully applied t o t he lat t er. The provisions of t his art icle are underst ood t o be wit hout prejudice t o t he right grant ed t o t he ot her debt or by Art icle 1252, but only if t he personal credit of t he part ner should be more onerous t o him. (1684) Art . 17 93. A part ner who has received, in whole or in part , his share of a part nership credit , when t he ot her part ners have not collect ed t heirs, shall be obliged, if t he debt or should t hereaft er become insolvent , t o bring t o t he part nership capit al what he received even t hough he may have given receipt for his share only . (1685a) Art . 17 94. Every part ner is responsible t o t he part nership for damages suffered by it t hrough his fault , and he cannot compensat e t hem wit h t he profit s and benefit s which he may have earned for t he part nership by his indust ry . However, t he court s may equit ably lessen t his responsibilit y if t hrough t he part ner's ext raordinary effort s in ot her act ivit ies of t he part nership, unusual profit s have been realized. (1686a) Art . 17 95. The risk of specific and det erminat e t hings, which are not fungible, cont ribut ed t o t he part nership so t hat only t heir use and fruit s may be for t he common benefit , shall be borne by t he part ner who owns t hem. If t he t hings cont ribut e are fungible, or cannot be kept wit hout det eriorat ing, or if t hey were cont ribut ed t o be sold, t he risk shall be borne by t he part nership. In t he absence of st ipulat ion, t he risk of t he t hings brought and appraised in t he invent ory , shall also be borne by t he part nership, and in such case t he claim shall be limit ed t o t he value at which t hey were appraised. (1687 ) Art . 17 96. The part nership shall be responsible t o every part ner for t he amount s he may have disbursed on behalf of t he part nership and for t he corresponding int erest , from t he t ime t he expense are made; it shall also answer t o each part ner for t he obligat ions he may have cont ract ed in good fait h in t he int erest of t he part nership business, and for risks in consequence of it s management . (1688a) Art . 17 97 . The losses and profit s shall be dist ribut ed in conformit y wit h t he agreement . If only t he share of each part ner in t he profit s has been agreed upon, t he share of each in t he losses shall be in t he same proport ion.
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In t he absence of st ipulat ion, t he share of each part ner in t he profit s and losses shall be in proport ion t o what he may have cont ribut ed, but t he indust rial part ner shall not be liable for t he losses. As for t he profit s, t he indust rial part ner shall receive such share as may be just and equit able under t he circumst ances. If besides his services he has cont ribut ed capit al, he shall also receive a share in t he profit s in proport ion t o his capit al. (1689a) Art . 17 98. If t he part ners have agreed t o int rust t o a t hird person t he designat ion of t he share of each one in t he profit s and losses, such designat ion may be impugned only when it is manifest ly inequit able. In no case may a part ner who has begun t o execut e t he decision of t he t hird person, or who has not impugned t he same wit hin a period of t hree mont hs from t he t ime he had knowledge t hereof, complain of such decision. The designat ion of losses and profit s cannot be int rust ed t o one of t he part ners. (1690) Art . 17 99. A st ipulat ion which excludes one or more part ners from any share in t he profit s or losses is void. (1691) Art . 1800. The part ner who has been appoint ed manager in t he art icles of part nership may execut e all act s of administ rat ion despit e t he opposit ion of his part ners, unless he should act in bad fait h; and his power is irrevocable wit hout just or lawful cause. The vot e of t he part ners represent ing t he cont rolling int erest shall be necessary for such revocat ion of power. A power grant ed aft er t he part nership has been const it ut ed may be revoked at any t ime. (1692a) Art . 1801. If t wo or more part ners have been int rust ed wit h t he management of t he part nership wit hout specificat ion of t heir respect ive dut ies, or wit hout a st ipulat ion t hat one of t hem shall not act wit hout t he consent of all t he ot hers, each one may separat ely execut e all act s of administ rat ion, but if any of t hem should oppose t he act s of t he ot hers, t he decision of t he majorit y shall prevail. In case of a t ie, t he mat t er shall be decided by t he part ners owning t he cont rolling int erest . (1693a) Art . 1802. In case it should have been st ipulat ed t hat none of t he managing part ners shall act wit hout t he consent of t he ot hers, t he concurrence of all shall be necessary for t he validit y of t he act s, and t he absence or disabilit y of any one of t hem cannot be alleged, unless t here is imminent danger of grave or irreparable injury t o t he part nership. (1694) Art . 1803. When t he manner of management has not been agreed upon, t he following rules shall be observed: (1) All t he part ners shall be considered agent s and what ever any one of t hem may do alone shall bind t he part nership, wit hout prejudice t o t he provisions of Art icle 1801. (2) None of t he part ners may , wit hout t he consent of t he ot hers, make any import ant alt erat ion in t he immovable propert y of t he part nership, even if it may be useful t o t he part nership. But if t he refusal of consent by t he ot her part ners is manifest ly prejudicial t o t he int erest of t he part nership, t he court 's int ervent ion may be sought . (1695a) Art . 1804. Every part ner may associat e anot her person wit h him in his share, but t he associat e shall not be admit t ed int o t he part nership wit hout t he consent of all t he ot her part ners, even if t he part ner having an associat e should be a manager. (1696) Art . 1805. The part nership books shall be kept , subject t o any agreement bet ween t he part ners, at t he principal place of business of t he part nership, and every part ner shall at any reasonable hour have access t o and may inspect and copy any of t hem. (n) Art . 1806. Part ners shall render on demand t rue and full informat ion of all t hings affect ing t he part nership t o any part ner or t he legal represent at ive of any deceased part ner or of any part ner under legal disabilit y . (n) Art . 1807 . Every part ner must account t o t he part nership for any benefit , and hold as t rust ee for it any profit s derived by him wit hout t he consent of t he ot her part ners from any t ransact ion connect ed wit h t he format ion, conduct , or liquidat ion of t he part nership or from any use by him of it s propert y . (n) Art . 1808. The capit alist part ners cannot engage for t heir own account in any operat ion which is of t he kind of business in which t he part nership is engaged, unless t here is a st ipulat ion t o t he cont rary . Any capit alist part ner violat ing t his prohibit ion shall bring t o t he common funds any profit s accruing t o him from his t ransact ions, and shall personally bear all t he losses. (n) Art . 1809. Any part ner shall have t he right t o a formal account as t o part nership affairs: (1) If he is wrongfully excluded from t he part nership business or possession of it s propert y by his co-part ners; (2) If t he right exist s under t he t erms of any agreement ; (3) As provided by art icle 1807 ; (4) Whenever ot her circumst ances render it just and reasonable. (n) SECTION 2. - Propert y Right s of a Part ner
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Art . 1810. The propert y right s of a part ner are: (1) His right s in specific part nership propert y ; (2) His int erest in t he part nership; and (3) His right t o part icipat e in t he management . (n) Art . 1811. A part ner is co-owner wit h his part ners of specific part nership propert y . The incident s of t his co-ownership are such t hat : (1) A part ner, subject t o t he provisions of t his Tit le and t o any agreement bet ween t he part ners, has an equal right wit h his part ners t o possess specific part nership propert y for part nership purposes; but he has no right t o possess such propert y for any ot her purpose wit hout t he consent of his part ners; (2) A part ner's right in specific part nership propert y is not assignable except in connect ion wit h t he assignment of right s of all t he part ners in t he same propert y ; (3) A part ner's right in specific part nership propert y is not subject t o at t achment or execut ion, except on a claim against t he part nership. When part nership propert y is at t ached for a part nership debt t he part ners, or any of t hem, or t he represent at ives of a deceased part ner, cannot claim any right under t he homest ead or exempt ion laws; (4) A part ner's right in specific part nership propert y is not subject t o legal support under Art icle 291. (n) Art . 1812. A part ner's int erest in t he part nership is his share of t he profit s and surplus. (n) Art . 1813. A convey ance by a part ner of his whole int erest in t he part nership does not of it self dissolve t he part nership, or, as against t he ot her part ners in t he absence of agreement , ent it le t he assignee, during t he cont inuance of t he part nership, t o int erfere in t he management or administ rat ion of t he part nership business or affairs, or t o require any informat ion or account of part nership t ransact ions, or t o inspect t he part nership books; but it merely ent it les t he assignee t o receive in accordance wit h his cont ract t he profit s t o which t he assigning part ner would ot herwise be ent it led. However, in case of fraud in t he management of t he part nership, t he assignee may avail himself of t he usual remedies. In case of a dissolut ion of t he part nership, t he assignee is ent it led t o receive his assignor's int erest and may require an account from t he dat e only of t he last account agreed t o by all t he part ners. (n) Art . 1814. Wit hout prejudice t o t he preferred right s of part nership credit ors under Art icle 1827 , on due applicat ion t o a compet ent court by any judgment credit or of a part ner, t he court which ent ered t he judgment , or any ot her court , may charge t he int erest of t he debt or part ner wit h pay ment of t he unsat isfied amount of such judgment debt wit h int erest t hereon; and may t hen or lat er appoint a receiver of his share of t he profit s, and of any ot her money due or t o fall due t o him in respect of t he part nership, and make all ot her orders, direct ions, account s and inquiries which t he debt or part ner might have made, or which t he circumst ances of t he case may require. The int erest charged may be redeemed at any t ime before foreclosure, or in case of a sale being direct ed by t he court , may be purchased wit hout t hereby causing a dissolut ion: (1) Wit h separat e propert y , by any one or more of t he part ners; or (2) Wit h part nership propert y , by any one or more of t he part ners wit h t he consent of all t he part ners whose int erest s are not so charged or sold. Not hing in t his Tit le shall be held t o deprive a part ner of his right , if any , under t he exempt ion laws, as regards his int erest in t he part nership. (n) SECTION 3. - Obligat ions of t he Part ners Wit h Regard t o Third Persons Art . 1815. Every part nership shall operat e under a firm name, which may or may not include t he name of one or more of t he part ners. Those who, not being members of t he part nership, include t heir names in t he firm name, shall be subject t o t he liabilit y of a part ner. (n) Art . 1816. All part ners, including indust rial ones, shall be liable pro rat a wit h all t heir propert y and aft er all t he part nership asset s have been exhaust ed, for t he cont ract s which may be ent ered int o in t he name and for t he account of t he part nership, under it s signat ure and by a person aut horized t o act for t he part nership. However, any part ner may ent er int o a separat e obligat ion t o perform a part nership cont ract . (n) Art . 1817 . Any st ipulat ion against t he liabilit y laid down in t he preceding art icle shall be void, except as among t he
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part ners. (n) Art . 1818. Every part ner is an agent of t he part nership for t he purpose of it s business, and t he act of every part ner, including t he execut ion in t he part nership name of any inst rument , for apparent ly carry ing on in t he usual way t he business of t he part nership of which he is a member binds t he part nership, unless t he part ner so act ing has in fact no aut horit y t o act for t he part nership in t he part icular mat t er, and t he person wit h whom he is dealing has knowledge of t he fact t hat he has no such aut horit y . An act of a part ner which is not apparent ly for t he carry ing on of business of t he part nership in t he usual way does not bind t he part nership unless aut horized by t he ot her part ners. Except when aut horized by t he ot her part ners or unless t hey have abandoned t he business, one or more but less t han all t he part ners have no aut horit y t o: (1) Assign t he part nership propert y in t rust for credit ors or on t he assignee's promise t o pay t he debt s of t he part nership; (2) Dispose of t he good-will of t he business; (3) Do any ot her act which would make it impossible t o carry on t he ordinary business of a part nership; (4) Confess a judgment ; (5) Ent er int o a compromise concerning a part nership claim or liabilit y ; (6) Submit a part nership claim or liabilit y t o arbit rat ion; (7 ) Renounce a claim of t he part nership. No act of a part ner in cont ravent ion of a rest rict ion on aut horit y shall bind t he part nership t o persons having knowledge of t he rest rict ion. (n) Art . 1819. Where t it le t o real propert y is in t he part nership name, any part ner may convey t it le t o such propert y by a convey ance execut ed in t he part nership name; but t he part nership may recover such propert y unless t he part ner's act binds t he part nership under t he provisions of t he first paragraph of art icle 1818, or unless such propert y has been convey ed by t he grant ee or a person claiming t hrough such grant ee t o a holder for value wit hout knowledge t hat t he part ner, in making t he convey ance, has exceeded his aut horit y . Where t it le t o real propert y is in t he name of t he part nership, a convey ance execut ed by a part ner, in his own name, passes t he equit able int erest of t he part nership, provided t he act is one wit hin t he aut horit y of t he part ner under t he provisions of t he first paragraph of Art icle 1818. Where t it le t o real propert y is in t he name of one or more but not all t he part ners, and t he record does not disclose t he right of t he part nership, t he part ners in whose name t he t it le st ands may convey t it le t o such propert y , but t he part nership may recover such propert y if t he part ners' act does not bind t he part nership under t he provisions of t he first paragraph of Art icle 1818, unless t he purchaser or his assignee, is a holder for value, wit hout knowledge. Where t he t it le t o real propert y is in t he name of one or more or all t he part ners, or in a t hird person in t rust for t he part nership, a convey ance execut ed by a part ner in t he part nership name, or in his own name, passes t he equit able int erest of t he part nership, provided t he act is one wit hin t he aut horit y of t he part ner under t he provisions of t he first paragraph of Art icle 1818. Where t he t it le t o real propert y is in t he name of all t he part ners a convey ance execut ed by all t he part ners passes all t heir right s in such propert y . (n) Art . 1820. An admission or represent at ion made by any part ner concerning part nership affairs wit hin t he scope of his aut horit y in accordance wit h t his Tit le is evidence against t he part nership. (n) Art . 1821. Not ice t o any part ner of any mat t er relat ing t o part nership affairs, and t he knowledge of t he part ner act ing in t he part icular mat t er, acquired while a part ner or t hen present t o his mind, and t he knowledge of any ot her part ner who reasonably could and should have communicat ed it t o t he act ing part ner, operat e as not ice t o or knowledge of t he part nership, except in t he case of fraud on t he part nership, commit t ed by or wit h t he consent of t hat part ner. (n) Art . 1822. Where, by any wrongful act or omission of any part ner act ing in t he ordinary course of t he business of t he part nership or wit h t he aut horit y of co-part ners, loss or injury is caused t o any person, not being a part ner in t he part nership, or any penalt y is incurred, t he part nership is liable t herefor t o t he same ext ent as t he part ner so act ing or omit t ing t o act . (n) Art . 1823. The part nership is bound t o make good t he loss: (1) Where one part ner act ing wit hin t he scope of his apparent aut horit y receives money or propert y of a t hird person and misapplies it ; and
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(2) Where t he part nership in t he course of it s business receives money or propert y of a t hird person and t he money or propert y so received is misapplied by any part ner while it is in t he cust ody of t he part nership. (n) Art . 1824. All part ners are liable solidarily wit h t he part nership for every t hing chargeable t o t he part nership under Art icles 1822 and 1823. (n) Art . 1825. When a person, by words spoken or writ t en or by conduct , represent s himself, or consent s t o anot her represent ing him t o any one, as a part ner in an exist ing part nership or wit h one or more persons not act ual part ners, he is liable t o any such persons t o whom such represent at ion has been made, who has, on t he fait h of such represent at ion, given credit t o t he act ual or apparent part nership, and if he has made such represent at ion or consent ed t o it s being made in a public manner he is liable t o such person, whet her t he represent at ion has or has not been made or communicat ed t o such person so giving credit by or wit h t he knowledge of t he apparent part ner making t he represent at ion or consent ing t o it s being made: (1) When a part nership liabilit y result s, he is liable as t hough he were an act ual member of t he part nership; (2) When no part nership liabilit y result s, he is liable pro rat a wit h t he ot her persons, if any , so consent ing t o t he cont ract or represent at ion as t o incur liabilit y , ot herwise separat ely . When a person has been t hus represent ed t o be a part ner in an exist ing part nership, or wit h one or more persons not act ual part ners, he is an agent of t he persons consent ing t o such represent at ion t o bind t hem t o t he same ext ent and in t he same manner as t hough he were a part ner in fact , wit h respect t o persons who rely upon t he represent at ion. When all t he members of t he exist ing part nership consent t o t he represent at ion, a part nership act or obligat ion result s; but in all ot her cases it is t he joint act or obligat ion of t he person act ing and t he persons consent ing t o t he represent at ion. (n) Art . 1826. A person admit t ed as a part ner int o an exist ing part nership is liable for all t he obligat ions of t he part nership arising before his admission as t hough he had been a part ner when such obligat ions were incurred, except t hat t his liabilit y shall be sat isfied only out of part nership propert y , unless t here is a st ipulat ion t o t he cont rary . (n) Art . 1827 . The credit ors of t he part nership shall be preferred t o t hose of each part ner as regards t he part nership propert y . Wit hout prejudice t o t his right , t he privat e credit ors of each part ner may ask t he at t achment and public sale of t he share of t he lat t er in t he part nership asset s. (n) CHAPTER 3 DISSOLUTION AND WINDING UP Art . 1828. The dissolut ion of a part nership is t he change in t he relat ion of t he part ners caused by any part ner ceasing t o be associat ed in t he carry ing on as dist inguished from t he winding up of t he business. (n) Art . 1829. On dissolut ion t he part nership is not t erminat ed, but cont inues unt il t he winding up of part nership affairs is complet ed. (n) Art . 1830. Dissolut ion is caused: (1) Wit hout violat ion of t he agreement bet ween t he part ners: (a) By t he t erminat ion of t he definit e t erm or part icular undert aking specified in t he agreement ; (b) By t he express will of any part ner, who must act in good fait h, when no definit e t erm or part icular is specified; (c) By t he express will of all t he part ners who have not assigned t heir int erest s or suffered t hem t o be charged for t heir separat e debt s, eit her before or aft er t he t erminat ion of any specified t erm or part icular undert aking; (d) By t he expulsion of any part ner from t he business bona fide in accordance wit h such a power conferred by t he agreement bet ween t he part ners; (2) In cont ravent ion of t he agreement bet ween t he part ners, where t he circumst ances do not permit a dissolut ion under any ot her provision of t his art icle, by t he express will of any part ner at any t ime; (3) By any event which makes it unlawful for t he business of t he part nership t o be carried on or for t he members t o carry it on in part nership; (4) When a specific t hing which a part ner had promised t o cont ribut e t o t he part nership, perishes before delivery ; in any case by t he loss of t he t hing, when t he part ner who cont ribut ed it having reserved ownership t hereof, has only t ransferred t o t he part nership t he use or enjoy ment of t he same; but part nership shall not be dissolved by t he loss of t he t hing when it occurs aft er t he part nership has acquired ownership t hereof;
t he t he t he t he
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(5) By t he deat h of any part ner; (6) By t he insolvency of any part ner or of t he part nership; (7 ) By t he civil int erdict ion of any part ner; (8) By decree of court under t he following art icle. (17 00a and 17 01a) Art . 1831. On applicat ion by or for a part ner t he court shall decree a dissolut ion whenever: (1) A part ner has been declared insane in any judicial proceeding or is shown t o be of unsound mind; (2) A part ner becomes in any ot her way incapable of performing his part of t he part nership cont ract ; (3) A part ner has been guilt y of such conduct as t ends t o affect prejudicially t he carry ing on of t he business; (4) A part ner wilfully or persist ent ly commit s a breach of t he part nership agreement , or ot herwise so conduct s himself in mat t ers relat ing t o t he part nership business t hat it is not reasonably pract icable t o carry on t he business in part nership wit h him; (5) The business of t he part nership can only be carried on at a loss; (6) Ot her circumst ances render a dissolut ion equit able. On t he applicat ion of t he purchaser of a part ner's int erest under Art icle 1813 or 1814: (1) Aft er t he t erminat ion of t he specified t erm or part icular undert aking; (2) At any t ime if t he part nership was a part nership at will when t he int erest was assigned or when t he charging order was issued. (n) Art . 1832. Except so far as may be necessary t o wind up part nership affairs or t o complet e t ransact ions begun but not t hen finished, dissolut ion t erminat es all aut horit y of any part ner t o act for t he part nership: (1) Wit h respect t o t he part ners: (a) When t he dissolut ion is not by t he act , insolvency or deat h of a part ner; or (b) When t he dissolut ion is by such act , insolvency or deat h of a part ner, in cases where art icle 1833 so requires; (2) Wit h respect t o persons not part ners, as declared in art icle 1834. (n) Art . 1833. Where t he dissolut ion is caused by t he act , deat h or insolvency of a part ner, each part ner is liable t o his copart ners for his share of any liabilit y creat ed by any part ner act ing for t he part nership as if t he part nership had not been dissolved unless: (1) The dissolut ion being by act of any part ner, t he part ner act ing for t he part nership had knowledge of t he dissolut ion; or (2) The dissolut ion being by t he deat h or insolvency of a part ner, t he part ner act ing for t he part nership had knowledge or not ice of t he deat h or insolvency . Art . 1834. Aft er dissolut ion, a part ner can bind t he part nership, except as provided in t he t hird paragraph of t his art icle: (1) By any act appropriat e for winding up part nership affairs or complet ing t ransact ions unfinished at dissolut ion; (2) By any t ransact ion which would bind t he part nership if dissolut ion had not t aken place, provided t he ot her part y t o t he t ransact ion: (a) Had ext ended credit t o t he part nership prior t o dissolut ion and had no knowledge or not ice of t he dissolut ion; or (b) Though he had not so ext ended credit , had nevert heless known of t he part nership prior t o dissolut ion, and, having no knowledge or not ice of dissolut ion, t he fact of dissolut ion had not been advert ised in a newspaper of general circulat ion in t he place (or in each place if more t han one) at which t he part nership business was regularly carried on. The liabilit y of a part ner under t he first paragraph, No. 2, shall be sat isfied out of part nership asset s alone when such part ner had been prior t o dissolut ion: (1) Unknown as a part ner t o t he person wit h whom t he cont ract is made; and
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(2) So far unknown and inact ive in part nership affairs t hat t he business reput at ion of t he part nership could not be said t o have been in any degree due t o his connect ion wit h it . The part nership is in no case bound by any act of a part ner aft er dissolut ion: (1) Where t he part nership is dissolved because it is unlawful t o carry on t he business, unless t he act is appropriat e for winding up part nership affairs; or (2) Where t he part ner has become insolvent ; or (3) Where t he part ner has no aut horit y t o wind up part nership affairs; except by a t ransact ion wit h one who: (a) Had ext ended credit t o t he part nership prior t o dissolut ion and had no knowledge or not ice of his want of aut horit y ; or (b) Had not ext ended credit t o t he part nership prior t o dissolut ion, and, having no knowledge or not ice of his want of aut horit y , t he fact of his want of aut horit y has not been advert ised in t he manner provided for advert ising t he fact of dissolut ion in t he first paragraph, No. 2 (b). Not hing in t his art icle shall affect t he liabilit y under Art icle 1825 of any person who, aft er dissolut ion, represent s himself or consent s t o anot her represent ing him as a part ner in a part nership engaged in carry ing business. (n) Art . 1835. The dissolut ion of t he part nership does not of it self discharge t he exist ing liabilit y of any part ner. A part ner is discharged from any exist ing liabilit y upon dissolut ion of t he part nership by an agreement t o t hat effect bet ween himself, t he part nership credit or and t he person or part nership cont inuing t he business; and such agreement may be inferred from t he course of dealing bet ween t he credit or having knowledge of t he dissolut ion and t he person or part nership cont inuing t he business. The individual propert y of a deceased part ner shall be liable for all obligat ions of t he part nership incurred while he was a part ner, but subject t o t he prior pay ment of his separat e debt s. (n) Art . 1836. Unless ot herwise agreed, t he part ners who have not wrongfully dissolved t he part nership or t he legal represent at ive of t he last surviving part ner, not insolvent , has t he right t o wind up t he part nership affairs, provided, however, t hat any part ner, his legal represent at ive or his assignee, upon cause shown, may obt ain winding up by t he court . (n) Art . 1837 . When dissolut ion is caused in any way , except in cont ravent ion of t he part nership agreement , each part ner, as against his co-part ners and all persons claiming t hrough t hem in respect of t heir int erest s in t he part nership, unless ot herwise agreed, may have t he part nership propert y applied t o discharge it s liabilit ies, and t he surplus applied t o pay in cash t he net amount owing t o t he respect ive part ners. But if dissolut ion is caused by expulsion of a part ner, bona fide under t he part nership agreement and if t he expelled part ner is discharged from all part nership liabilit ies, eit her by pay ment or agreement under t he second paragraph of Art icle 1835, he shall receive in cash only t he net amount due him from t he part nership. When dissolut ion is caused in cont ravent ion of t he part nership agreement t he right s of t he part ners shall be as follows: (1) Each part ner who has not caused dissolut ion wrongfully shall have: (a) All t he right s specified in t he first paragraph of t his art icle, and (b) The right , as against each part ner who has caused t he dissolut ion wrongfully , t o damages breach of t he agreement . (2) The part ners who have not caused t he dissolut ion wrongfully , if t hey all desire t o cont inue t he business in t he same name eit her by t hemselves or joint ly wit h ot hers, may do so, during t he agreed t erm for t he part nership and for t hat purpose may possess t he part nership propert y , provided t hey secure t he pay ment by bond approved by t he court , or pay any part ner who has caused t he dissolut ion wrongfully , t he value of his int erest in t he part nership at t he dissolut ion, less any damages recoverable under t he second paragraph, No. 1 (b) of t his art icle, and in like manner indemnify him against all present or fut ure part nership liabilit ies. (3) A part ner who has caused t he dissolut ion wrongfully shall have: (a) If t he business is not cont inued under t he provisions of t he second paragraph, No. 2, all t he right s of a part ner under t he first paragraph, subject t o liabilit y for damages in t he second paragraph, No. 1 (b), of t his art icle. (b) If t he business is cont inued under t he second paragraph, No. 2, of t his art icle, t he right as against his co-part ners and all claiming t hrough t hem in respect of t heir int erest s in t he part nership, t o have t he value of his int erest in t he part nership, less any damage caused t o his co-part ners by t he dissolut ion, ascert ained and paid t o him in cash, or t he pay ment secured by a bond approved by t he court , and t o be
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released from all exist ing liabilit ies of t he part nership; but in ascert aining t he value of t he part ner's int erest t he value of t he good-will of t he business shall not be considered. (n) Art . 1838. Where a part nership cont ract is rescinded on t he ground of t he fraud or misrepresent at ion of one of t he part ies t heret o, t he part y ent it led t o rescind is, wit hout prejudice t o any ot her right , ent it led: (1) To a lien on, or right of ret ent ion of, t he surplus of t he part nership propert y aft er sat isfy ing t he part nership liabilit ies t o t hird persons for any sum of money paid by him for t he purchase of an int erest in t he part nership and for any capit al or advances cont ribut ed by him; (2) To st and, aft er all liabilit ies t o t hird persons have been sat isfied, in t he place of t he credit ors of t he part nership for any pay ment s made by him in respect of t he part nership liabilit ies; and (3) To be indemnified by t he person guilt y of t he fraud or making t he represent at ion against all debt s and liabilit ies of t he part nership. (n) Art . 1839. In set t ling account s bet ween t he part ners aft er dissolut ion, t he following rules shall be observed, subject t o any agreement t o t he cont rary : (1) The asset s of t he part nership are: (a) The part nership propert y , (b) The cont ribut ions of t he part ners necessary for t he pay ment of all t he liabilit ies specified in No. 2. (2) The liabilit ies of t he part nership shall rank in order of pay ment , as follows: (a) Those owing t o credit ors ot her t han part ners, (b) Those owing t o part ners ot her t han for capit al and profit s, (c) Those owing t o part ners in respect of capit al, (d) Those owing t o part ners in respect of profit s. (3) The asset s shall be applied in t he order of t heir declarat ion in No. 1 of t his art icle t o t he sat isfact ion of t he liabilit ies. (4) The part ners shall cont ribut e, as provided by art icle 17 97 , t he amount necessary t o sat isfy t he liabilit ies. (5) An assignee for t he benefit of credit ors or any person appoint ed by t he court shall have t he right t o enforce t he cont ribut ions specified in t he preceding number. (6) Any part ner or his legal represent at ive shall have t he right t o enforce t he cont ribut ions specified in No. 4, t o t he ext ent of t he amount which he has paid in excess of his share of t he liabilit y . (7 ) The individual propert y of a deceased part ner shall be liable for t he cont ribut ions specified in No. 4. (8) When part nership propert y and t he individual propert ies of t he part ners are in possession of a court for dist ribut ion, part nership credit ors shall have priorit y on part nership propert y and separat e credit ors on individual propert y , saving t he right s of lien or secured credit ors. (9) Where a part ner has become insolvent or his est at e is insolvent , t he claims against his separat e propert y shall rank in t he following order: (a) Those owing t o separat e credit ors; (b) Those owing t o part nership credit ors; (c) Those owing t o part ners by way of cont ribut ion. (n) Art . 1840. In t he following cases credit ors of t he dissolved part nership are also credit ors of t he person or part nership cont inuing t he business: (1) When any new part ner is admit t ed int o an exist ing part nership, or when any part ner ret ires and assigns (or t he represent at ive of t he deceased part ner assigns) his right s in part nership propert y t o t wo or more of t he part ners, or t o one or more of t he part ners and one or more t hird persons, if t he business is cont inued wit hout liquidat ion of t he part nership affairs; (2) When all but one part ner ret ire and assign (or t he represent at ive of a deceased part ner assigns) t heir right s in part nership propert y t o t he remaining part ner, who cont inues t he business wit hout liquidat ion of part nership affairs, eit her alone or wit h ot hers;
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(3) When any part ner ret ires or dies and t he business of t he dissolved part nership is cont inued as set fort h in Nos. 1 and 2 of t his art icle, wit h t he consent of t he ret ired part ners or t he represent at ive of t he deceased part ner, but wit hout any assignment of his right in part nership propert y ; (4) When all t he part ners or t heir represent at ives assign t heir right s in part nership propert y t o one or more t hird persons who promise t o pay t he debt s and who cont inue t he business of t he dissolved part nership; (5) When any part ner wrongfully causes a dissolut ion and t he remaining part ners cont inue t he business under t he provisions of art icle 1837 , second paragraph, No. 2, eit her alone or wit h ot hers, and wit hout liquidat ion of t he part nership affairs; (6) When a part ner is expelled and t he remaining part ners cont inue t he business eit her alone or wit h ot hers wit hout liquidat ion of t he part nership affairs. The liabilit y of a t hird person becoming a part ner in t he part nership cont inuing t he business, under t his art icle, t o t he credit ors of t he dissolved part nership shall be sat isfied out of t he part nership propert y only , unless t here is a st ipulat ion t o t he cont rary . When t he business of a part nership aft er dissolut ion is cont inued under any condit ions set fort h in t his art icle t he credit ors of t he di ssolved part nership, as against t he separat e credit ors of t he ret iring or deceased part ner or t he represent at ive of t he deceased part ner, have a prior right t o any claim of t he ret ired part ner or t he represent at ive of t he deceased part ner against t he person or part nership cont inuing t he business, on account of t he ret ired or deceased part ner's int erest in t he dissolved part nership or on account of any considerat ion promised for such int erest or for his right in part nership propert y . Not hing in t his art icle shall be held t o modify any right of credit ors t o set aside any assignment on t he ground of fraud. The use by t he person or part nership cont inuing t he business of t he part nership name, or t he name of a deceased part ner as part t hereof, shall not of it self make t he individual propert y of t he deceased part ner liable for any debt s cont ract ed by such person or part nership. (n) Art . 1841. When any part ner ret ires or dies, and t he business is cont inued under any of t he condit ions set fort h in t he preceding art icle, or in Art icle 1837 , second paragraph, No. 2, wit hout any set t lement of account s as bet ween him or his est at e and t he person or part nership cont inuing t he business, unless ot herwise agreed, he or his legal represent at ive as against such person or part nership may have t he value of his int erest at t he dat e of dissolut ion ascert ained, and shall receive as an ordinary credit or an amount equal t o t he value of his int erest in t he dissolved part nership wit h int erest , or, at his opt ion or at t he opt ion of his legal represent at ive, in lieu of int erest , t he profit s at t ribut able t o t he use of his right in t he propert y of t he dissolved part nership; provided t hat t he credit ors of t he dissolved part nership as against t he separat e credit ors, or t he represent at ive of t he ret ired or deceased part ner, shall have priorit y on any claim arising under t his art icle, as provided Art icle 1840, t hird paragraph. (n) Art . 1842. The right t o an account of his int erest shall accrue t o any part ner, or his legal represent at ive as against t he winding up part ners or t he surviving part ners or t he person or part nership cont inuing t he business, at t he dat e of dissolut ion, in t he absence of any agreement t o t he cont rary . (n) CHAPTER 4 LIMITED PARTNERSHIP (n) Art . 1843. A limit ed part nership is one formed by t wo or more persons under t he provisions of t he following art icle, having as members one or more general part ners and one or more limit ed part ners. The limit ed part ners as such shall not be bound by t he obligat ions of t he part nership. Art . 1844. Two or more persons desiring t o form a limit ed part nership shall: (1) Sign and swear t o a cert ificat e, which shall st at e (a) The name of t he part nership, adding t heret o t he word "Limited"; (b) The charact er of t he business; (c) The locat ion of t he principal place of business; (d) The name and place of residence of each member, general and limit ed part ners being respect ively designat ed; (e) The t erm for which t he part nership is t o exist ; (f) The amount of cash and a descript ion of and t he agreed value of t he ot her propert y cont ribut ed by each limit ed part ner; (g) The addit ional cont ribut ions, if any , t o be made by each limit ed part ner and t he t imes at which or
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event s on t he happening of which t hey shall be made; (h) The t ime, if agreed upon, when t he cont ribut ion of each limit ed part ner is t o be ret urned; (i) The share of t he profit s or t he ot her compensat ion by way of income which each limit ed part ner shall receive by reason of his cont ribut ion; (j) The right , if given, of a limit ed part ner t o subst it ut e an assignee as cont ribut or in his place, and t he t erms and condit ions of t he subst it ut ion; (k) The right , if given, of t he part ners t o admit addit ional limit ed part ners; (l) The right , if given, of one or more of t he limit ed part ners t o priorit y over ot her limit ed part ners, as t o cont ribut ions or as t o compensat ion by way of income, and t he nat ure of such priorit y ; (m) The right , if given, of t he remaining general part ner or part ners t o cont inue t he business on t he deat h, ret irement , civil int erdict ion, insanit y or insolvency of a general part ner; and (n) The right , if given, of a limit ed part ner t o demand and receive propert y ot her t han cash in ret urn for his cont ribut ion. (2) File for record t he cert ificat e in t he Office of t he Securit ies and Exchange Commission. A limit ed part nership is formed if t here has been subst ant ial compliance in good fait h wit h t he foregoing requirement s. Art . 1845. The cont ribut ions of a limit ed part ner may be cash or propert y , but not services. Art . 1846. The surname of a limit ed part ner shall not appear in t he part nership name unless: (1) It is also t he surname of a general part ner, or (2) Prior t o t he t ime when t he limit ed part ner became such, t he business has been carried on under a name in which his surname appeared. A limit ed part ner whose surname appears in a part nership name cont rary t o t he provisions of t he first paragraph is liable as a general part ner t o part nership credit ors who ext end credit t o t he part nership wit hout act ual knowledge t hat he is not a general part ner. Art . 1847 . If t he cert ificat e cont ains a false st at ement , one who suffers loss by reliance on such st at ement may hold liable any part y t o t he cert ificat e who knew t he st at ement t o be false: (1) At t he t ime he signed t he cert ificat e, or (2) Subsequent ly , but wit hin a sufficient t ime before t he st at ement was relied upon t o enable him t o cancel or amend t he cert ificat e, or t o file a pet it ion for it s cancellat ion or amendment as provided in Art icle 1865. Art . 1848. A limit ed part ner shall not become liable as a general part ner unless, in addit ion t o t he exercise of his right s and powers as a limit ed part ner, he t akes part in t he cont rol of t he business. Art . 1849. Aft er t he format ion of a lift ed part nership, addit ional limit ed part ners may be admit t ed upon filing an amendment t o t he original cert ificat e in accordance wit h t he requirement s of Art icle 1865. Art . 1850. A general part ner shall have all t he right s and powers and be subject t o all t he rest rict ions and liabilit ies of a part ner in a part nership wit hout limit ed part ners. However, wit hout t he writ t en consent or rat ificat ion of t he specific act by all t he limit ed part ners, a general part ner or all of t he general part ners have no aut horit y t o: (1) Do any act in cont ravent ion of t he cert ificat e; (2) Do any act which would make it impossible t o carry on t he ordinary business of t he part nership; (3) Confess a judgment against t he part nership; (4) Possess part nership propert y , or assign t heir right s in specific part nership propert y , for ot her t han a part nership purpose; (5) Admit a person as a general part ner; (6) Admit a person as a limit ed part ner, unless t he right so t o do is given in t he cert ificat e; (7 ) Cont inue t he business wit h part nership propert y on t he deat h, ret irement , insanit y , civil int erdict ion or insolvency of a general part ner, unless t he right so t o do is given in t he cert ificat e. Art . 1851. A limit ed part ner shall have t he same right s as a general part ner t o:
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(1) Have t he part nership books kept at t he principal place of business of t he part nership, and at a reasonable hour t o inspect and copy any of t hem; (2) Have on demand t rue and full informat ion of all t hings affect ing t he part nership, and a formal account of part nership affairs whenever circumst ances render it just and reasonable; and (3) Have dissolut ion and winding up by decree of court . A limit ed part ner shall have t he right t o receive a share of t he profit s or ot her compensat ion by way of income, and t o t he ret urn of his cont ribut ion as provided in Art icles 1856 and 1857 . Art . 1852. Wit hout prejudice t o t he provisions of Art icle 1848, a person who has cont ribut ed t o t he capit al of a business conduct ed by a person or part nership erroneously believing t hat he has become a limit ed part ner in a limit ed part nership, is not , by reason of his exercise of t he right s of a limit ed part ner, a general part ner wit h t he person or in t he part nership carry ing on t he business, or bound by t he obligat ions of such person or part nership, provided t hat on ascert aining t he mist ake he prompt ly renounces his int erest in t he profit s of t he business, or ot her compensat ion by way of income. Art . 1853. A person may be a general part ner and a limit ed part ner in t he same part nership at t he same t ime, provided t hat t his fact shall be st at ed in t he cert ificat e provided for in Art icle 1844. A person who is a general, and also at t he same t ime a limit ed part ner, shall have all t he right s and powers and be subject t o all t he rest rict ions of a general part ner; except t hat , in respect t o his cont ribut ion, he shall have t he right s against t he ot her members which he would have had if he were not also a general part ner. Art . 1854. A limit ed part ner also may loan money t o and t ransact ot her business wit h t he part nership, and, unless he is also a general part ner, receive on account of result ing claims against t he part nership, wit h general credit ors, a pro rat a share of t he asset s. No limit ed part ner shall in respect t o any such claim: (1) Receive or hold as collat eral securit y and part nership propert y , or (2) Receive from a general part ner or t he part nership any pay ment , convey ance, or release from liabilit y if at t he t ime t he asset s of t he part nership are not sufficient t o discharge part nership liabilit ies t o persons not claiming as general or limit ed part ners. The receiving of collat eral securit y , or pay ment , convey ance, or release in violat ion of t he foregoing provisions is a fraud on t he credit ors of t he part nership. Art . 1855. Where t here are several limit ed part ners t he members may agree t hat one or more of t he limit ed part ners shall have a priorit y over ot her limit ed part ners as t o t he ret urn of t heir cont ribut ions, as t o t heir compensat ion by way of income, or as t o any ot her mat t er. If such an agreement is made it shall be st at ed in t he cert ificat e, and in t he absence of such a st at ement all t he limit ed part ners shall st and upon equal foot ing. Art . 1856. A limit ed part ner may receive from t he part nership t he share of t he profit s or t he compensat ion by way of income st ipulat ed for in t he cert ificat e; provided t hat aft er such pay ment is made, whet her from propert y of t he part nership or t hat of a general part ner, t he part nership asset s are in excess of all liabilit ies of t he part nership except liabilit ies t o limit ed part ners on account of t heir cont ribut ions and t o general part ners. Art . 1857 . A limit ed part ner shall not receive from a general part ner or out of part nership propert y any part of his cont ribut ions unt il: (1) All liabilit ies of t he part nership, except liabilit ies t o general part ners and t o limit ed part ners on account of t heir cont ribut ions, have been paid or t here remains propert y of t he part nership sufficient t o pay t hem; (2) The consent of all members is had, unless t he ret urn of t he cont ribut ion may be right fully demanded under t he provisions of t he second paragraph; and (3) The cert ificat e is cancelled or so amended as t o set fort h t he wit hdrawal or reduct ion. Subject t o t he provisions of t he first paragraph, a limit ed part ner may right fully demand t he ret urn of his cont ribut ion: (1) On t he dissolut ion of a part nership; or (2) When t he dat e specified in t he cert ificat e for it s ret urn has arrived, or (3) Aft er he has six mont hs' not ice in writ ing t o all ot her members, if no t ime is specified in t he cert ificat e, eit her for t he ret urn of t he cont ribut ion or for t he dissolut ion of t he part nership. In t he absence of any st at ement in t he cert ificat e t o t he cont rary or t he consent of all members, a limit ed part ner, irrespect ive of t he nat ure of his cont ribut ion, has only t he right t o demand and receive cash in ret urn for his cont ribut ion.
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A limit ed part ner may have t he part nership dissolved and it s affairs wound up when: (1) He right fully but unsuccessfully demands t he ret urn of his cont ribut ion, or (2) The ot her liabilit ies of t he part nership have not been paid, or t he part nership propert y is insufficient for t heir pay ment as required by t he first paragraph, No. 1, and t he limit ed part ner would ot herwise be ent it led t o t he ret urn of his cont ribut ion. Art . 1858. A limit ed part ner is liable t o t he part nership: (1) For t he difference bet ween his cont ribut ion as act ually made and t hat st at ed in t he cert ificat e as having been made; and (2) For any unpaid cont ribut ion which he agreed in t he cert ificat e t o make in t he fut ure at t he t ime and on t he condit ions st at ed in t he cert ificat e. A limit ed part ner holds as t rust ee for t he part nership: (1) Specific propert y st at ed in t he cert ificat e as cont ribut ed by him, but which was not cont ribut ed or which has been wrongfully ret urned, and (2) Money or ot her propert y wrongfully paid or convey ed t o him on account of his cont ribut ion. The liabilit ies of a limit ed part ner as set fort h in t his art icle can be waived or compromised only by t he consent of all members; but a waiver or compromise shall not affect t he right of a credit or of a part nership who ext ended credit or whose claim arose aft er t he filing and before a cancellat ion or amendment of t he cert ificat e, t o enforce such liabilit ies. When a cont ribut or has right fully received t he ret urn in whole or in part of t he capit al of his cont ribut ion, he is nevert heless liable t o t he part nership for any sum, not in excess of such ret urn wit h int erest , necessary t o discharge it s liabilit ies t o all credit ors who ext ended credit or whose claims arose before such ret urn. Art . 1859. A limit ed part ner's int erest is assignable. A subst it ut ed limit ed part ner is a person admit t ed t o all t he right s of a limit ed part ner who has died or has assigned his int erest in a part nership. An assignee, who does not become a subst it ut ed limit ed part ner, has no right t o require any informat ion or account of t he part nership t ransact ions or t o inspect t he part nership books; he is only ent it led t o receive t he share of t he profit s or ot her compensat ion by way of income, or t he ret urn of his cont ribut ion, t o which his assignor would ot herwise be ent it led. An assignee shall have t he right t o become a subst it ut ed limit ed part ner if all t he members consent t heret o or if t he assignor, being t hereunt o empowered by t he cert ificat e, gives t he assignee t hat right . An assignee becomes a subst it ut ed limit ed part ner when t he cert ificat e is appropriat ely amended in accordance wit h Art icle 1865. The subst it ut ed limit ed part ner has all t he right s and powers, and is subject t o all t he rest rict ions and liabilit ies of his assignor, except t hose liabilit ies of which he was ignorant at t he t ime he became a limit ed part ner and which could not be ascert ained from t he cert ificat e. The subst it ut ion of t he assignee as a limit ed part ner does not release t he assignor from liabilit y t o t he part nership under Art icles 1847 and 1848. Art . 1860. The ret irement , deat h, insolvency , insanit y or civil int erdict ion of a general part ner dissolves t he part nership, unless t he business is cont inued by t he remaining general part ners: (1) Under a right so t o do st at ed in t he cert ificat e, or (2) Wit h t he consent of all members. Art . 1861. On t he deat h of a limit ed part ner his execut or or administ rat or shall have all t he right s of a limit ed part ner for t he purpose of set t ing his est at e, and such power as t he deceased had t o const it ut e his assignee a subst it ut ed limit ed part ner. The est at e of a deceased limit ed part ner shall be liable for all his liabilit ies as a limit ed part ner. Art . 1862. On due applicat ion t o a court of compet ent jurisdict ion by any credit or of a limit ed part ner, t he court may charge t he int erest of t he indebt ed limit ed part ner wit h pay ment of t he unsat isfied amount of such claim, and may appoint a receiver, and make all ot her orders, direct ions and inquiries which t he circumst ances of t he case may require. The int erest may be redeemed wit h t he separat e propert y of any general part ner, but may not be redeemed wit h part nership propert y .
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The remedies conferred by t he first paragraph shall not be deemed exclusive of ot hers which may exist . Not hing in t his Chapt er shall be held t o deprive a limit ed part ner of his st at ut ory exempt ion. Art . 1863. In set t ing account s aft er dissolut ion t he liabilit ies of t he part nership shall be ent it led t o pay ment in t he following order: (1) Those t o credit ors, in t he order of priorit y as provided by law, except t hose t o limit ed part ners on account of t heir cont ribut ions, and t o general part ners; (2) Those t o limit ed part ners in respect t o t heir share of t he profit s and ot her compensat ion by way of income on t heir cont ribut ions; (3) Those t o limit ed part ners in respect t o t he capit al of t heir cont ribut ions; (4) Those t o general part ners ot her t han for capit al and profit s; (5) Those t o general part ners in respect t o profit s; (6) Those t o general part ners in respect t o capit al. Subject t o any st at ement in t he cert ificat e or t o subsequent agreement , limit ed part ners share in t he part nership asset s in respect t o t heir claims for capit al, and in respect t o t heir claims for profit s or for compensat ion by way of income on t heir cont ribut ion respect ively , in proport ion t o t he respect ive amount s of such claims. Art . 1864. The cert ificat e shall be cancelled when t he part nership is dissolved or all limit ed part ners cease t o be such. A cert ificat e shall be amended when: (1) There is a change in t he name of t he part nership or in t he amount or charact er of t he cont ribut ion of any limit ed part ner; (2) A person is subst it ut ed as a limit ed part ner; (3) An addit ional limit ed part ner is admit t ed; (4) A person is admit t ed as a general part ner; (5) A general part ner ret ires, dies, becomes insolvent or insane, or is sent enced t o civil int erdict ion and t he business is cont inued under Art icle 1860; (6) There is a change in t he charact er of t he business of t he part nership; (7 ) There is a false or erroneous st at ement in t he cert ificat e; (8) There is a change in t he t ime as st at ed in t he cert ificat e for t he dissolut ion of t he part nership or for t he ret urn of a cont ribut ion; (9) A t ime is fixed for t he dissolut ion of t he part nership, or t he ret urn of a cont ribut ion, no t ime having been specified in t he cert ificat e, or (10) The members desire t o make a change in any ot her st at ement in t he cert ificat e in order t hat it shall accurat ely represent t he agreement among t hem. Art . 1865. The writ ing t o amend a cert ificat e shall: (1) Conform t o t he requirement s of Art icle 1844 as far as necessary t o set fort h clearly t he change in t he cert ificat e which it is desired t o make; and (2) Be signed and sworn t o by all members, and an amendment subst it ut ing a limit ed part ner or adding a limit ed or general part ner shall be signed also by t he member t o be subst it ut ed or added, and when a limit ed part ner is t o be subst it ut ed, t he amendment shall also be signed by t he assigning limit ed part ner. The writ ing t o cancel a cert ificat e shall be signed by all members. A person desiring t he cancellat ion or amendment of a cert ificat e, if any person designat ed in t he first and second paragraphs as a person who must execut e t he writ ing refuses t o do so, may pet it ion t he court t o order a cancellat ion or amendment t hereof. If t he court finds t hat t he pet it ioner has a right t o have t he writ ing execut ed by a person who refuses t o do so, it shall order t he Office of t he Securit ies and Exchange Commission where t he cert ificat e is recorded, t o record t he cancellat ion or amendment of t he cert ificat e; and when t he cert ificat e is t o be amended, t he court shall also cause t o be filed for record in said office a cert ified copy of it s decree set t ing fort h t he amendment . A cert ificat e is amended or cancelled when t here is filed for record in t he Office of t he Securit ies and Exchange
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Commission, where t he cert ificat e is recorded: (1) A writ ing in accordance wit h t he provisions of t he first or second paragraph, or (2) A cert ified copy of t he order of t he court in accordance wit h t he provisions of t he fourt h paragraph; (3) Aft er t he cert ificat e is duly amended in accordance wit h t his art icle, t he amended cert ified shall t hereaft er be for all purposes t he cert ificat e provided for in t his Chapt er. Art . 1866. A cont ribut or, unless he is a general part ner, is not a proper part y t o proceedings by or against a part nership, except where t he object is t o enforce a limit ed part ner's right against or liabilit y t o t he part nership. Art . 1867 . A limit ed part nership formed under t he law prior t o t he effect ivit y of t his Code, may become a limit ed part nership under t his Chapt er by comply ing wit h t he provisions of Art icle 1844, provided t he cert ificat e set s fort h: (1) The amount of t he original cont ribut ion of each limit ed part ner, and t he t ime when t he cont ribut ion was made; and (2) That t he propert y of t he part nership exceeds t he amount sufficient t o discharge it s liabilit ies t o persons not claiming as general or limit ed part ners by an amount great er t han t he sum of t he cont ribut ions of it s limit ed part ners. A limit ed part nership formed under t he law prior t o t he effect ivit y of t his Code, unt il or unless it becomes a limit ed part nership under t his Chapt er, shall cont inue t o be governed by t he provisions of t he old law. Tit le X. - AGENCY CHAPTER 1 NATURE, FORM AND KINDS OF AGENCY Art . 1868. By t he cont ract of agency a person binds himself t o render some service or t o do somet hing in represent at ion or on behalf of anot her, wit h t he consent or aut horit y of t he lat t er. (17 09a) Art . 1869. Agency may be express, or implied from t he act s of t he principal, from his silence or lack of act ion, or his failure t o repudiat e t he agency , knowing t hat anot her person is act ing on his behalf wit hout aut horit y . Agency may be oral, unless t he law requires a specific form. (17 10a) Art . 187 0. Accept ance by t he agent may also be express, or implied from his act s which carry out t he agency , or from his silence or inact ion according t o t he circumst ances. (n) Art . 187 1. Bet ween persons who are present , t he accept ance of t he agency may also be implied if t he principal delivers his power of at t orney t o t he agent and t he lat t er receives it wit hout any object ion. (n) Art . 187 2. Bet ween persons who are absent , t he accept ance of t he agency cannot be implied from t he silence of t he agent , except : (1) When t he principal t ransmit s his power of at t orney t o t he agent , who receives it wit hout any object ion; (2) When t he principal ent rust s t o him by let t er or t elegram a power of at t orney wit h respect t o t he business in which he is habit ually engaged as an agent , and he did not reply t o t he let t er or t elegram. (n) Art . 187 3. If a person specially informs anot her or st at es by public advert isement t hat he has given a power of at t orney t o a t hird person, t he lat t er t hereby becomes a duly aut horized agent , in t he former case wit h respect t o t he person who received t he special informat ion, and in t he lat t er case wit h regard t o any person. The power shall cont inue t o be in full force unt il t he not ice is rescinded in t he same manner in which it was given. (n) Art . 187 4. When a sale of a piece of land or any int erest t herein is t hrough an agent , t he aut horit y of t he lat t er shall be in writ ing; ot herwise, t he sale shall be void. (n) Art . 187 5. Agency is presumed t o be for a compensat ion, unless t here is proof t o t he cont rary . (n) Art . 187 6. An agency is eit her general or special. The former comprises all t he business of t he principal. The lat t er, one or more specific t ransact ions. (17 12) Art . 187 7 . An agency couched in general t erms comprises only act s of administ rat ion, even if t he principal should st at e t hat he wit hholds no power or t hat t he agent may execut e such act s as he may consider appropriat e, or even t hough t he agency should aut horize a general and unlimit ed management . (n) Art . 187 8. Special powers of at t orney are necessary in t he following cases: (1) To make such pay ment s as are not usually considered as act s of administ rat ion;
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(2) To effect novat ions which put an end t o obligat ions already in exist ence at t he t ime t he agency was const it ut ed; (3) To compromise, t o submit quest ions t o arbit rat ion, t o renounce t he right t o appeal from a judgment , t o waive object ions t o t he venue of an act ion or t o abandon a prescript ion already acquired; (4) To waive any obligat ion grat uit ously ; (5) To ent er int o any cont ract by which t he ownership of an immovable is t ransmit t ed or acquired eit her grat uit ously or for a valuable considerat ion; (6) To make gift s, except cust omary ones for charit y or t hose made t o employ ees in t he business managed by t he agent ; (7 ) To loan or borrow money , unless t he lat t er act be urgent and indispensable for t he preservat ion of t he t hings which are under administ rat ion; (8) To lease any real propert y t o anot her person for more t han one y ear; (9) To bind t he principal t o render some service wit hout compensat ion; (10) To bind t he principal in a cont ract of part nership; (11) To obligat e t he principal as a guarant or or suret y ; (12) To creat e or convey real right s over immovable propert y ; (13) To accept or repudiat e an inherit ance; (14) To rat ify or recognize obligat ions cont ract ed before t he agency ; (15) Any ot her act of st rict dominion. (n) Art . 187 9. A special power t o sell excludes t he power t o mort gage; and a special power t o mort gage does not include t he power t o sell. (n) Art . 1880. A special power t o compromise does not aut horize submission t o arbit rat ion. (17 13a) Art . 1881. The agent must act wit hin t he scope of his aut horit y . He may do such act s as may be conducive t o t he accomplishment of t he purpose of t he agency . (17 14a) Art . 1882. The limit s of t he agent 's aut horit y shall not be considered exceeded should it have been performed in a manner more advant ageous t o t he principal t han t hat specified by him. (17 15) Art . 1883. If an agent act s in his own name, t he principal has no right of act ion against t he persons wit h whom t he agent has cont ract ed; neit her have such persons against t he principal. In such case t he agent is t he one direct ly bound in favor of t he person wit h whom he has cont ract ed, as if t he t ransact ion were his own, except when t he cont ract involves t hings belonging t o t he principal. The provisions of t his art icle shall be underst ood t o be wit hout prejudice t o t he act ions bet ween t he principal and agent . (17 17 ) CHAPTER 2 OBLIGATIONS OF THE AGENT Art . 1884. The agent is bound by his accept ance t o carry out t he agency , and is liable for t he damages which, t hrough his non-performance, t he principal may suffer. He must also finish t he business already begun on t he deat h of t he principal, should delay ent ail any danger. (17 18) Art . 1885. In case a person declines an agency , he is bound t o observe t he diligence of a good fat her of a family in t he cust ody and preservat ion of t he goods forwarded t o him by t he owner unt il t he lat t er should appoint an agent or t ake charge of t he goods. (n) Art . 1886. Should t here be a st ipulat ion t hat t he agent shall advance t he necessary funds, he shall be bound t o do so except when t he principal is insolvent . (n) Art . 1887 . In t he execut ion of t he agency , t he agent shall act in accordance wit h t he inst ruct ions of t he principal. In default t hereof, he shall do all t hat a good fat her of a family would do, as required by t he nat ure of t he business. (17 19)
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Art . 1888. An agent shall not carry out an agency if it s execut ion would manifest ly result in loss or damage t o t he principal. (n) Art . 1889. The agent shall be liable for damages if, t here being a conflict bet ween his int erest s and t hose of t he principal, he should prefer his own. (n) Art . 1890. If t he agent has been empowered t o borrow money , he may himself be t he lender at t he current rat e of int erest . If he has been aut horized t o lend money at int erest , he cannot borrow it wit hout t he consent of t he principal. (n) Art . 1891. Every agent is bound t o render an account of his t ransact ions and t o deliver t o t he principal what ever he may have received by virt ue of t he agency , even t hough it may not be owing t o t he principal. Every st ipulat ion exempt ing t he agent from t he obligat ion t o render an account shall be void. (17 20a) Art . 1892. The agent may appoint a subst it ut e if t he principal has not prohibit ed him from doing so; but he shall be responsible for t he act s of t he subst it ut e: (1) When he was not given t he power t o appoint one; (2) When he was given such power, but wit hout designat ing t he person, and t he person appoint ed was not oriously incompet ent or insolvent . All act s of t he subst it ut e appoint ed against t he prohibit ion of t he principal shall be void. (17 21) Art . 1893. In t he cases ment ioned in Nos. 1 and 2 of t he preceding art icle, t he principal may furt hermore bring an act ion against t he subst it ut e wit h respect t o t he obligat ions which t he lat t er has cont ract ed under t he subst it ut ion. (17 22a) Art . 1894. The responsibilit y of t wo or more agent s, even t hough t hey have been appoint ed simult aneously , is not solidary , if solidarit y has not been expressly st ipulat ed. (17 23) Art . 1895. If solidarit y has been agreed upon, each of t he agent s is responsible for t he non-fulfillment of agency , and for t he fault or negligence of his fellows agent s, except in t he lat t er case when t he fellow agent s act ed bey ond t he scope of t heir aut horit y . (n) Art . 1896. The agent owes int erest on t he sums he has applied t o his own use from t he day on which he did so, and on t hose which he st ill owes aft er t he ext inguishment of t he agency . (17 24a) Art . 1897 . The agent who act s as such is not personally liable t o t he part y wit h whom he cont ract s, unless he expressly binds himself or exceeds t he limit s of his aut horit y wit hout giving such part y sufficient not ice of his powers. (17 25) Art . 1898. If t he agent cont ract s in t he name of t he principal, exceeding t he scope of his aut horit y , and t he principal does not rat ify t he cont ract , it shall be void if t he part y wit h whom t he agent cont ract ed is aware of t he limit s of t he powers grant ed by t he principal. In t his case, however, t he agent is liable if he undert ook t o secure t he principal's rat ificat ion. (n) Art . 1899. If a duly aut horized agent act s in accordance wit h t he orders of t he principal, t he lat t er cannot set up t he ignorance of t he agent as t o circumst ances whereof he himself was, or ought t o have been, aware. (n) Art . 1900. So far as t hird persons are concerned, an act is deemed t o have been performed wit hin t he scope of t he agent 's aut horit y , if such act is wit hin t he t erms of t he power of at t orney , as writ t en, even if t he agent has in fact exceeded t he limit s of his aut horit y according t o an underst anding bet ween t he principal and t he agent . (n) Art . 1901. A t hird person cannot set up t he fact t hat t he agent has exceeded his powers, if t he principal has rat ified, or has signified his willingness t o rat ify t he agent 's act s. (n) Art . 1902. A t hird person wit h whom t he agent wishes t o cont ract on behalf of t he principal may require t he present at ion of t he power of at t orney , or t he inst ruct ions as regards t he agency . Privat e or secret orders and inst ruct ions of t he principal do not prejudice t hird persons who have relied upon t he power of at t orney or inst ruct ions shown t hem. (n) Art . 1903. The commission agent shall be responsible for t he goods received by him in t he t erms and condit ions and as described in t he consignment , unless upon receiving t hem he should make a writ t en st at ement of t he damage and det eriorat ion suffered by t he same. (n) Art . 1904. The commission agent who handles goods of t he same kind and mark, which belong t o different owners, shall dist inguish t hem by count ermarks, and designat e t he merchandise respect ively belonging t o each principal. (n) Art . 1905. The commission agent cannot , wit hout t he express or implied consent of t he principal, sell on credit . Should he do so, t he principal may demand from him pay ment in cash, but t he commission agent shall be ent it led t o any int erest or benefit , which may result from such sale. (n)
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Art . 1906. Should t he commission agent , wit h aut horit y of t he principal, sell on credit , he shall so inform t he principal, wit h a st at ement of t he names of t he buy ers. Should he fail t o do so, t he sale shall be deemed t o have been made for cash insofar as t he principal is concerned. (n) Art . 1907 . Should t he commission agent receive on a sale, in addit ion t o t he ordinary commission, anot her called a guarant ee commission, he shall bear t he risk of collect ion and shall pay t he principal t he proceeds of t he sale on t he same t erms agreed upon wit h t he purchaser. (n) Art . 1908. The commission agent who does not collect t he credit s of his principal at t he t ime when t hey become due and demandable shall be liable for damages, unless he proves t hat he exercised due diligence for t hat purpose. (n) Art . 1909. The agent is responsible not only for fraud, but also for negligence, which shall be judged wit h more or less rigor by t he court s, according t o whet her t he agency was or was not for a compensat ion. (17 26) CHAPTER 3 OBLIGATIONS OF THE PRINCIPAL Art . 1910. The principal must comply wit h all t he obligat ions which t he agent may have cont ract ed wit hin t he scope of his aut horit y . As for any obligat ion wherein t he agent has exceeded his power, t he principal is not bound except when he rat ifies it expressly or t acit ly . (17 27 ) Art . 1911. Even when t he agent has exceeded his aut horit y , t he principal is solidarily liable wit h t he agent if t he former allowed t he lat t er t o act as t hough he had full powers. (n) Art . 1912. The principal must advance t o t he agent , should t he lat t er so request , t he sums necessary for t he execut ion of t he agency . Should t he agent have advanced t hem, t he principal must reimburse him t herefor, even if t he business or undert aking was not successful, provided t he agent is free from all fault . The reimbursement shall include int erest on t he sums advanced, from t he day on which t he advance was made. (17 28) Art . 1913. The principal must also indemnify t he agent for all t he damages which t he execut ion of t he agency may have caused t he lat t er, wit hout fault or negligence on his part . (17 29) Art . 1914. The agent may ret ain in pledge t he t hings which are t he object of t he agency unt il t he principal effect s t he reimbursement and pay s t he indemnit y set fort h in t he t wo preceding art icles. (17 30) Art . 1915. If t wo or more persons have appoint ed an agent for a common t ransact ion or undert aking, t hey shall be solidarily liable t o t he agent for all t he consequences of t he agency . (17 31) Art . 1916. When t wo persons cont ract wit h regard t o t he same t hing, one of t hem wit h t he agent and t he ot her wit h t he principal, and t he t wo cont ract s are incompat ible wit h each ot her, t hat of prior dat e shall be preferred, wit hout prejudice t o t he provisions of Art icle 1544. (n) Art . 1917 . In t he case referred t o in t he preceding art icle, if t he agent has act ed in good fait h, t he principal shall be liable in damages t o t he t hird person whose cont ract must be reject ed. If t he agent act ed in bad fait h, he alone shall be responsible. (n) Art . 1918. The principal is not liable for t he expenses incurred by t he agent in t he following cases: (1) If t he agent act ed in cont ravent ion of t he principal's inst ruct ions, unless t he lat t er should wish t o avail himself of t he benefit s derived from t he cont ract ; (2) When t he expenses were due t o t he fault of t he agent ; (3) When t he agent incurred t hem wit h knowledge t hat an unfavorable result would ensue, if t he principal was not aware t hereof; (4) When it was st ipulat ed t hat t he expenses would be borne by t he agent , or t hat t he lat t er would be allowed only a cert ain sum. (n) CHAPTER 4 MODES OF EXTINGUISHMENT OF AGENCY Art . 1919. Agency is ext inguished: (1) By it s revocat ion;
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(2) By t he wit hdrawal of t he agent ; (3) By t he deat h, civil int erdict ion, insanit y or insolvency of t he principal or of t he agent ; (4) By t he dissolut ion of t he firm or corporat ion which ent rust ed or accept ed t he agency ; (5) By t he accomplishment of t he object or purpose of t he agency ; (6) By t he expirat ion of t he period for which t he agency was const it ut ed. (17 32a) Art . 1920. The principal may revoke t he agency at will, and compel t he agent t o ret urn t he document evidencing t he agency . Such revocat ion may be express or implied. (17 33a) Art . 1921. If t he agency has been ent rust ed for t he purpose of cont ract ing wit h specified persons, it s revocat ion shall not prejudice t he lat t er if t hey were not given not ice t hereof. (17 34) Art . 1922. If t he agent had general powers, revocat ion of t he agency does not prejudice t hird persons who act ed in good fait h and wit hout knowledge of t he revocat ion. Not ice of t he revocat ion in a newspaper of general circulat ion is a sufficient warning t o t hird persons. (n) Art . 1923. The appoint ment of a new agent for t he same business or t ransact ion revokes t he previous agency from t he day on which not ice t hereof was given t o t he former agent , wit hout prejudice t o t he provisions of t he t wo preceding art icles. (17 35a) Art . 1924. The agency is revoked if t he principal direct ly manages t he business ent rust ed t o t he agent , dealing direct ly wit h t hird persons. (n) Art . 1925. When t wo or more principals have grant ed a power of at t orney for a common t ransact ion, any one of t hem may revoke t he same wit hout t he consent of t he ot hers. (n) Art . 1926. A general power of at t orney is revoked by a special one grant ed t o anot her agent , as regards t he special mat t er involved in t he lat t er. (n) Art . 1927 . An agency cannot be revoked if a bilat eral cont ract depends upon it , or if it is t he means of fulfilling an obligat ion already cont ract ed, or if a part ner is appoint ed manager of a part nership in t he cont ract of part nership and his removal from t he management is unjust ifiable. (n) Art . 1928. The agent may wit hdraw from t he agency by giving due not ice t o t he principal. If t he lat t er should suffer any damage by reason of t he wit hdrawal, t he agent must indemnify him t herefor, unless t he agent should base his wit hdrawal upon t he impossibilit y of cont inuing t he performance of t he agency wit hout grave det riment t o himself. (17 36a) Art . 1929. The agent , even if he should wit hdraw from t he agency for a valid reason, must cont inue t o act unt il t he principal has had reasonable opport unit y t o t ake t he necessary st eps t o meet t he sit uat ion. (17 37 a) Art . 1930. The agency shall remain in full force and effect even aft er t he deat h of t he principal, if it has been const it ut ed in t he common int erest of t he lat t er and of t he agent , or in t he int erest of a t hird person who has accept ed t he st ipulat ion in his favor. (n) Art . 1931. Any t hing done by t he agent , wit hout knowledge of t he deat h of t he principal or of any ot her cause which ext inguishes t he agency , is valid and shall be fully effect ive wit h respect t o t hird persons who may have cont ract ed wit h him in good fait h. (17 38) Art . 1932. If t he agent dies, his heirs must not ify t he principal t hereof, and in t he meant ime adopt such measures as t he circumst ances may demand in t he int erest of t he lat t er. (17 39) Tit le XI. - LOAN GENERAL PROVISIONS Art . 1933. By t he cont ract of loan, one of t he part ies delivers t o anot her, eit her somet hing not consumable so t hat t he lat t er may use t he same for a cert ain t ime and ret urn it , in which case t he cont ract is called a commodat um; or money or ot her consumable t hing, upon t he condit ion t hat t he same amount of t he same kind and qualit y shall be paid, in which case t he cont ract is simply called a loan or mutuum. Commodatum is essent ially grat uit ous. Simple loan may be grat uit ous or wit h a st ipulat ion t o pay int erest . In commodatum t he bailor ret ains t he ownership of t he t hing loaned, while in simple loan, ownership passes t o t he borrower. (17 40a)
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Art . 1934. An accept ed promise t o deliver somet hing by way of commodatum or simple loan is binding upon part ies, but t he commodatum or simple loan it self shall not be perfect ed unt il t he delivery of t he object of t he cont ract . (n) CHAPTER 1 COMMODATUM SECTION 1 - Nat ure of Commodatum Art . 1935. The bailee in commodatum acquires t he used of t he t hing loaned but not it s fruit s; if any compensat ion is t o be paid by him who acquires t he use, t he cont ract ceases t o be a commodatum. (1941a) Art . 1936. Consumable goods may be t he subject of commodatum if t he purpose of t he cont ract is not t he consumpt ion of t he object , as when it is merely for exhibit ion. (n) Art . 1937 . Movable or immovable propert y may be t he object of commodatum. (n) Art . 1938. The bailor in commodatum need not be t he owner of t he t hing loaned. (n) Art . 1939. Commodatum is purely personal in charact er. Consequent ly : (1) The deat h of eit her t he bailor or t he bailee ext inguishes t he cont ract ; (2) The bailee can neit her lend nor lease t he object of t he cont ract t o a t hird person. However, t he members of t he bailee's household may make use of t he t hing loaned, unless t here is a st ipulat ion t o t he cont rary , or unless t he nat ure of t he t hing forbids such use. (n) Art . 1940. A st ipulat ion t hat t he bailee may make use of t he fruit s of t he t hing loaned is valid. (n) SECTION 2. - Obligat ions of t he Bailee Art . 1941. The bailee is obliged t o pay for t he ordinary expenses for t he use and preservat ion of t he t hing loaned. (17 43a) Art . 1942. The bailee is liable for t he loss of t he t hing, even if it should be t hrough a fort uit ous event : (1) If he devot es t he t hing t o any purpose different from t hat for which it has been loaned; (2) If he keeps it longer t han t he period st ipulat ed, or aft er t he accomplishment of t he use for which t he commodatum has been const it ut ed; (3) If t he t hing loaned has been delivered wit h appraisal of it s value, unless t here is a st ipulat ion exempt ion t he bailee from responsibilit y in case of a fort uit ous event ; (4) If he lends or leases t he t hing t o a t hird person, who is not a member of his household; (5) If, being able t o save eit her t he t hing borrowed or his own t hing, he chose t o save t he lat t er. (17 44a and 17 45) Art . 1943. The bailee does not answer for t he det eriorat ion of t he t hing loaned due only t o t he use t hereof and wit hout his fault . (17 46) Art . 1944. The bailee cannot ret ain t he t hing loaned on t he ground t hat t he bailor owes him somet hing, even t hough it may be by reason of expenses. However, t he bailee has a right of ret ent ion for damages ment ioned in Art icle 1951. (17 47 a) Art . 1945. When t here are t wo or more bailees t o whom a t hing is loaned in t he same cont ract , t hey are liable solidarily . (17 48a) SECTION 3. - Obligat ions of t he Bailor Art . 1946. The bailor cannot demand t he ret urn of t he t hing loaned t ill aft er t he expirat ion of t he period st ipulat ed, or aft er t he accomplishment of t he use for which t he commodatum has been const it ut ed. However, if in t he meant ime, he should have urgent need of t he t hing, he may demand it s ret urn or t emporary use. In case of t emporary use by t he bailor, t he cont ract of commodatum is suspended while t he t hing is in t he possession of t he bailor. (17 49a) Art . 1947 . The bailor may demand t he t hing at will, and t he cont ract ual relat ion is called a precarium, in t he following cases: (1) If neit her t he durat ion of t he cont ract nor t he use t o which t he t hing loaned should be devot ed, has been st ipulat ed; or
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(2) If t he use of t he t hing is merely t olerat ed by t he owner. (17 50a) Art . 1948. The bailor may demand t he immediat e ret urn of t he t hing if t he bailee commit s any act of ingrat it ude specified in Art icle 7 65. (n) Art . 1949. The bailor shall refund t he ext raordinary expenses during t he cont ract for t he preservat ion of t he t hing loaned, provided t he bailee brings t he same t o t he knowledge of t he bailor before incurring t hem, except when t hey are so urgent t hat t he reply t o t he not ificat ion cannot be await ed wit hout danger. If t he ext raordinary expenses arise on t he occasion of t he act ual use of t he t hing by t he bailee, even t hough he act ed wit hout fault , t hey shall be borne equally by bot h t he bailor and t he bailee, unless t here is a st ipulat ion t o t he cont rary . (17 51a) Art . 1950. If, for t he purpose of making use of t he t hing, t he bailee incurs expenses ot her t han t hose referred t o in Art icles 1941 and 1949, he is not ent it led t o reimbursement . (n) Art . 1951. The bailor who, knowing t he flaws of t he t hing loaned, does not advise t he bailee of t he same, shall be liable t o t he lat t er for t he damages which he may suffer by reason t hereof. (17 52) Art . 1952. The bailor cannot exempt himself from t he pay ment of expenses or damages by abandoning t he t hing t o t he bailee. (n) CHAPTER 2 SIMPLE LOAN OR MUTUUM Art . 1953. A person who receives a loan of money or any ot her fungible t hing acquires t he ownership t hereof, and is bound t o pay t o t he credit or an equal amount of t he same kind and qualit y . (17 53a) Art . 1954. A cont ract whereby one person t ransfers t he ownership of non-fungible t hings t o anot her wit h t he obligat ion on t he part of t he lat t er t o give t hings of t he same kind, quant it y , and qualit y shall be considered a bart er. (n) Art . 1955. The obligat ion of a person who borrows money shall be governed by t he provisions of Art icles 1249 and 1250 of t his Code. If what was loaned is a fungible t hing ot her t han money , t he debt or owes anot her t hing of t he same kind, quant it y and qualit y , even if it should change in value. In case it is impossible t o deliver t he same kind, it s value at t he t ime of t he perfect ion of t he loan shall be paid. (17 54a) Art . 1956. No int erest shall be due unless it has been expressly st ipulat ed in writ ing. (17 55a) Art . 1957 . Cont ract s and st ipulat ions, under any cloak or device what ever, int ended t o circumvent t he laws against usury shall be void. The borrower may recover in accordance wit h t he laws on usury . (n) Art . 1958. In t he det erminat ion of t he int erest , if it is pay able in kind, it s value shall be appraised at t he current price of t he product s or goods at t he t ime and place of pay ment . (n) Art . 1959. Wit hout prejudice t o t he provisions of Art icle 2212, int erest due and unpaid shall not earn int erest . However, t he cont ract ing part ies may by st ipulat ion capit alize t he int erest due and unpaid, which as added principal, shall earn new int erest . (n) Art . 1960. If t he borrower pay s int erest when t here has been no st ipulat ion t herefor, t he provisions of t his Code concerning solutio indebiti, or nat ural obligat ions, shall be applied, as t he case may be. (n) Art . 1961. Usurious cont ract s shall be governed by t he Usury Law and ot her special laws, so far as t hey are not inconsist ent wit h t his Code. (n) Tit le XII. - DEPOSIT CHAPTER 1 DEPOSIT IN GENERAL AND ITS DIFFERENT KINDS Art . 1962. A deposit is const it ut ed from t he moment a person receives a t hing belonging t o anot her, wit h t he obligat ion of safely keeping it and of ret urning t he same. If t he safekeeping of t he t hing delivered is not t he principal purpose of t he cont ract , t here is no deposit but some ot her cont ract . (17 58a) Art . 1963. An agreement t o const it ut e a deposit is binding, but t he deposit it self is not perfect ed unt il t he delivery of t he t hing. (n) Art . 1964. A deposit may be const it ut ed judicially or ext rajudicially . (17 59)
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Art . 1965. A deposit is a grat uit ous cont ract , except when t here is an agreement t o t he cont rary , or unless t he deposit ary is engaged in t he business of st oring goods. (17 60a) Art . 1966. Only movable t hings may be t he object of a deposit . (17 61) Art . 1967 . An ext rajudicial deposit is eit her volunt ary or necessary . (17 62) CHAPTER 2 VOLUNTARY DEPOSIT SECTION 1. - General Provisions Art . 1968. A volunt ary deposit is t hat wherein t he delivery is made by t he will of t he deposit or. A deposit may also be made by t wo or more persons each of whom believes himself ent it led t o t he t hing deposit ed wit h a t hird person, who shall deliver it in a proper case t o t he one t o whom it belongs. (17 63) Art . 1969. A cont ract of deposit may be ent ered int o orally or in writ ing. (n) Art . 197 0. If a person having capacit y t o cont ract accept s a deposit made by one who is incapacit at ed, t he former shall be subject t o all t he obligat ions of a deposit ary , and may be compelled t o ret urn t he t hing by t he guardian, or administ rat or, of t he person who made t he deposit , or by t he lat t er himself if he should acquire capacit y . (17 64) Art . 197 1. If t he deposit has been made by a capacit at ed person wit h anot her who is not , t he deposit or shall only have an act ion t o recover t he t hing deposit ed while it is st ill in t he possession of t he deposit ary , or t o compel t he lat t er t o pay him t he amount by which he may have enriched or benefit ed himself wit h t he t hing or it s price. However, if a t hird person who acquired t he t hing act ed in bad fait h, t he deposit or may bring an act ion against him for it s recovery . (17 65a) SECTION 2. - Obligat ions of t he Deposit ary Art . 197 2. The deposit ary is obliged t o keep t he t hing safely and t o ret urn it , when required, t o t he deposit or, or t o his heirs and successors, or t o t he person who may have been designat ed in t he cont ract . His responsibilit y , wit h regard t o t he safekeeping and t he loss of t he t hing, shall be governed by t he provisions of Tit le I of t his Book. If t he deposit is grat uit ous, t his fact shall be t aken int o account in det ermining t he degree of care t hat t he deposit ary must observe. (17 66a) Art . 197 3. Unless t here is a st ipulat ion t o t he cont rary , t he deposit ary cannot deposit t he t hing wit h a t hird person. If deposit wit h a t hird person is allowed, t he deposit ary is liable for t he loss if he deposit ed t he t hing wit h a person who is manifest ly careless or unfit . The deposit ary is responsible for t he negligence of his employ ees. (n) Art . 197 4. The deposit ary may change t he way of t he deposit if under t he circumst ances he may reasonably presume t hat t he deposit or would consent t o t he change if he knew of t he fact s of t he sit uat ion. However, before t he deposit ary may make such change, he shall not ify t he deposit or t hereof and wait for his decision, unless delay would cause danger. (n) Art . 197 5. The deposit ary holding cert ificat es, bonds, securit ies or inst rument s which earn int erest shall be bound t o collect t he lat t er when it becomes due, and t o t ake such st eps as may be necessary in order t hat t he securit ies may preserve t heir value and t he right s corresponding t o t hem according t o law. The above provision shall not apply t o cont ract s for t he rent of safet y deposit boxes. (n) Art . 197 6. Unless t here is a st ipulat ion t o t he cont rary , t he deposit ary may commingle grain or ot her art icles of t he same kind and qualit y , in which case t he various deposit ors shall own or have a proport ionat e int erest in t he mass. (n) Art . 197 7 . The deposit ary cannot make use of t he t hing deposit ed wit hout t he express permission of t he deposit or. Ot herwise, he shall be liable for damages. However, when t he preservat ion of t h e t hing deposit ed requires it s use, it must be used but only for t hat purpose. (17 67 a) Art . 197 8. When t he deposit ary has permission t o use t he t hing deposit ed, t he cont ract loses t he concept of a deposit and becomes a loan or commodat um, except where safekeeping is st ill t he principal purpose of t he cont ract . The permission shall not be presumed, and it s exist ence must be proved. (17 68a) Art . 197 9. The deposit ary is liable for t he loss of t he t hing t hrough a fort uit ous event : (1) If it is so st ipulat ed;
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(2) If he uses t he t hing wit hout t he deposit or's permission; (3) If he delay s it s ret urn; (4) If he allows ot hers t o use it , even t hough he himself may have been aut horized t o use t he same. (n) Art . 1980. Fixed, savings, and current deposit s of money in banks and similar inst it ut ions shall be governed by t he provisions concerning simple loan. (n) Art . 1981. When t he t hing deposit ed is delivered closed and sealed, t he deposit ary must ret urn it in t he same condit ion, and he shall be liable for damages should t he seal or lock be broken t hrough his fault . Fault on t he part of t he deposit ary is presumed, unless t here is proof t o t he cont rary . As regards t he value of t he t hing deposit ed, t he st at ement of t he deposit or shall be accept ed, when t he forcible opening is imput able t o t he deposit ary , should t here be no proof t o t he cont rary . However, t he court s may pass upon t he credibilit y of t he deposit or wit h respect t o t he value claimed by him. When t he seal or lock is broken, wit h or wit hout t he deposit ary 's fault , he shall keep t he secret of t he deposit . (17 69a) Art . 1982. When it becomes necessary t o open a locked box or recept acle, t he deposit ary is presumed aut horized t o do so, if t he key has been delivered t o him; or when t he inst ruct ions of t he deposit or as regards t he deposit cannot be execut ed wit hout opening t he box or recept acle. (n) Art . 1983. The t hing deposit ed shall be ret urned wit h all it s product s, accessories and accessions. Should t he deposit consist of money , t he provisions relat ive t o agent s in art icle 1896 shall be applied t o t he deposit ary . (17 7 0) Art . 1984. The deposit ary cannot demand t hat t he deposit or prove his ownership of t he t hing deposit ed. Nevert heless, should he discover t hat t he t hing has been st olen and who it s t rue owner is, he must advise t he lat t er of t he deposit . If t he owner, in spit e of such informat ion, does not claim it wit hin t he period of one mont h, t he deposit ary shall be relieved of all responsibilit y by ret urning t he t hing deposit ed t o t he deposit or. If t he deposit ary has reasonable grounds t o believe t hat t he t hing has not been lawfully acquired by t he deposit or, t he former may ret urn t he same. (17 7 1a) Art . 1985. When t here are t wo or more deposit ors, if t hey are not solidary , and t he t hing admit s of division, each one cannot demand more t han his share. When t here is solidarit y or t he t hing does not admit of division, t he provisions of Art icles 1212 and 1214 shall govern. However, if t here is a st ipulat ion t hat t he t hing should be ret urned t o one of t he deposit ors, t he deposit ary shall ret urn it only t o t he person designat ed. (17 7 2a) Art . 1986. If t he deposit or should lose his capacit y t o cont ract aft er having made t he deposit , t he t hing cannot be ret urned except t o t he persons who may have t he administ rat ion of his propert y and right s. (17 7 3) Art . 1987 . If at t he t ime t he deposit was made a place was designat ed for t he ret urn of t he t hing, t he deposit ary must t ake t he t hing deposit ed t o such place; but t he expenses for t ransport at ion shall be borne by t he deposit or. If no place has been designat ed for t he ret urn, it shall be made where t he t hing deposit ed may be, even if it should not be t he same place where t he deposit was made, provided t hat t here was no malice on t he part of t he deposit ary . (17 7 4) Art . 1988. The t hing deposit ed must be ret urned t o t he deposit or upon demand, even t hough a specified period or t ime for such ret urn may have been fixed. This provision shall not apply when t he t hing is judicially at t ached while in t he deposit ary 's possession, or should he have been not ified of t he opposit ion of a t hird person t o t he ret urn or t he removal of t he t hing deposit ed. In t hese cases, t he deposit ary must immediat ely inform t he deposit or of t he at t achment or opposit ion. (17 7 5) Art . 1989. Unless t he deposit is for a valuable considerat ion, t he deposit ary who may have just ifiable reasons for not keeping t he t hing deposit ed may , even before t he t ime designat ed, ret urn it t o t he deposit or; and if t he lat t er should refuse t o receive it , t he deposit ary may secure it s consignat ion from t he court . (17 7 6a) Art . 1990. If t he deposit ary by force majeure or government order loses t he t hing and receives money or anot her t hing in it s place, he shall deliver t he sum or ot her t hing t o t he deposit or. (17 7 7 a) Art . 1991. The deposit or's heir who in good fait h may have sold t he t hing which he did not know was deposit ed, shall only be bound t o ret urn t he price he may have received or t o assign his right of act ion against t he buy er in case t he price has not been paid him. (17 7 8)
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SECTION 3. - Obligat ions of t he Deposit or Art . 1992. If t he deposit is grat uit ous, t he deposit or is obliged t o reimburse t he deposit ary for t he expenses he may have incurred for t he preservat ion of t he t hing deposit ed. (17 7 9a) Art . 1993. The deposit or shall reimburse t he deposit ary for any loss arising from t he charact er of t he t hing deposit ed, unless at t he t ime of t he const it ut ion of t he deposit t he former was not aware of, or was not expect ed t o know t he dangerous charact er of t he t hing, or unless he not ified t he deposit ary of t he same, or t he lat t er was aware of it wit hout advice from t he deposit or. (n) Art . 1994. The deposit ary may ret ain t he t hing in pledge unt il t he full pay ment of what may be due him by reason of t he deposit . (17 80) Art . 1995. A deposit it s ext inguished: (1) Upon t he loss or dest ruct ion of t he t hing deposit ed; (2) In case of a grat uit ous deposit , upon t he deat h of eit her t he deposit or or t he deposit ary . (n) CHAPTER 3 NECESSARY DEPOSIT Art . 1996. A deposit is necessary : (1) When it is made in compliance wit h a legal obligat ion; (2) When it t akes place on t he occasion of any calamit y , such as fire, st orm, flood, pillage, shipwreck, or ot her similar event s. (17 81a) Art . 1997 . The deposit referred t o in No. 1 of t he preceding art icle shall be governed by t he provisions of t he law est ablishing it , and in case of it s deficiency , by t he rules on volunt ary deposit . The deposit ment ioned in No. 2 of t he preceding art icle shall be regulat ed by t he provisions concerning volunt ary deposit and by Art icle 2168. (17 82) Art . 1998. The deposit of effect s made by t he t ravellers in hot els or inns shall also be regarded as necessary . The keepers of hot els or inns shall be responsible for t hem as deposit aries, provided t hat not ice was given t o t hem, or t o t heir employ ees, of t he effect s brought by t he guest s and t hat , on t he part of t he lat t er, t hey t ake t he precaut ions which said hot el-keepers or t heir subst it ut es advised relat ive t o t he care and vigilance of t heir effect s. (17 83) Art . 1999. The hot el-keeper is liable for t he vehicles, animals and art icles which have been int roduced or placed in t he annexes of t he hot el. (n) Art . 2000. The responsibilit y referred t o in t he t wo preceding art icles shall include t he loss of, or injury t o t he personal propert y of t he guest s caused by t he servant s or employ ees of t he keepers of hot els or inns as well as st rangers; but not t hat which may proceed from any force majeure. The fact t hat t ravellers are const rained t o rely on t he vigilance of t he keeper of t he hot els or inns shall be considered in det ermining t he degree of care required of him. (17 84a) Art . 2001. The act of a t hief or robber, who has ent ered t he hot el is not deemed force majeure, unless it is done wit h t he use of arms or t hrough an irresist ible force. (n) Art . 2002. The hot el-keeper is not liable for compensat ion if t he loss is due t o t he act s of t he guest , his family , servant s or visit ors, or if t he loss arises from t he charact er of t he t hings brought int o t he hot el. (n) Art . 2003. The hot el-keeper cannot free himself from responsibilit y by post ing not ices t o t he effect t hat he is not liable for t he art icles b rought by t he guest . Any st ipulat ion bet ween t he hot el-keeper and t he guest whereby t he responsibilit y of t he former as set fort h in art icles 1998 t o 2001 is suppressed or diminished shall be void. (n) Art . 2004. The hot el-keeper has a right t o ret ain t he t hings brought int o t he hot el by t he guest , as a securit y for credit s on account of lodging, and supplies usually furnished t o hot el guest s. (n) CHAPTER 4 SEQUESTRATION OR JUDICIAL DEPOSIT Art . 2005. A judicial deposit or sequest rat ion t akes place when an at t achment or seizure of propert y in lit igat ion is ordered. (17 85) Art . 2006. Movable as well as immovable propert y may be t he object of sequest rat ion. (17 86) Art . 2007 . The deposit ary of propert y or object s sequest rat ed cannot be relieved of his responsibilit y unt il t he cont roversy which gave rise t heret o has come t o an end, unless t he court so orders. (17 87 a)
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Art . 2008. The deposit ary of propert y sequest rat ed is bound t o comply , wit h respect t o t he same, wit h all t he obligat ions of a good fat her of a family . (17 88) Art . 2009. As t o mat t ers not provided for in t his Code, judicial sequest rat ion shall be governed by t he Rules of Court . (17 89) Tit le XIII. - ALEATORY CONTRACTS GENERAL PROVISIONS Art . 2010. By an aleat ory cont ract , one of t he part ies or bot h reciprocally bind t hemselves t o give or t o do somet hing in considerat ion of what t he ot her shall give or do upon t he happening of an event which is uncert ain, or which is t o occur at an indet erminat e t ime. (17 90) CHAPTER 1 INSURANCE Art . 2011. The cont ract of insurance is governed by special laws. Mat t ers not expressly provided for in such special laws shall be regulat ed by t his Code. (n) Art . 2012. Any person who is forbidden from receiving any donat ion under Art icle 7 39 cannot be named beneficiary of a life insurance policy by t he person who cannot make any donat ion t o him, according t o said art icle. (n) CHAPTER 2 GAMBLING Art . 2013. A game of chance is t hat which depends more on chance or hazard t han or skill or abilit y . For t he purposes of t he following art icles, in case of doubt a game is deemed t o be one of chance. (n) Art . 2014. No act ion can be maint ained by t he winner for t he collect ion of what he has won in a game of chance. But any loser in a game of chance may recover his loss from t he winner, wit h legal int erest from t he t ime he paid t he amount lost , and subsidiarily from t he operat or or manager of t he gambling house. (17 99a) Art . 2015. If cheat ing or deceit is commit t ed by t he winner, he, and subsidiarily t he operat or or manager of t he gambling house, shall pay by way of exemplary damages, not less t han t he equivalent of t he sum lost , in addit ion t o t he lat t er amount . If bot h t he winner and t he loser have perpet rat ed fraud, no act ion for recovery can be brought by eit her. (n) Art . 2016. If t he loser refuses or neglect s t o bring an act ion t o recover what has been lost , his or her credit ors, spouse, descendant s or ot her persons ent it led t o be support ed by t he loser may inst it ut e t he act ion. The sum t hereby obt ained shall be applied t o t he credit ors' claims, or t o t he support of t he spouse or relat ives, as t he case may be. (n) Art . 2017 . The provisions of Art icle 2014 and 2016 apply when t wo or more persons bet in a game of chance, alt hough t hey t ake no act ive part in t he game it self. (17 99a) Art . 2018. If a cont ract which purport s t o be for t he delivery of goods, securit ies or shares of st ock is ent ered int o wit h t he int ent ion t hat t he difference bet ween t he price st ipulat ed and t he exchange or market price at t he t ime of t he pret ended delivery shall be paid by t he loser t o t he winner, t he t ransact ion is null and void. The loser may recover what he has paid. (n) Art . 2019. Bet t ing on t he result of sport s, at hlet ic compet it ions, or games of skill may be prohibit ed by local ordinances. (n) Art . 2020. The loser in any game which is not one of chance, when t here is no local ordinance which prohibit s bet t ing t herein, is under obligat ion t o pay his loss, unless t he amount t hereof is excessive under t he circumst ances. In t he lat t er case, t he court shall reduce t he loss t o t he proper sum. (1801a) CHAPTER 3 LIFE ANNUITY Art . 2021. The aleat ory cont ract of life annuit y binds t he debt or t o pay an annual pension or income during t he life of one or more det erminat e persons in considerat ion of a capit al consist ing of money or ot her propert y , whose ownership is t ransferred t o him at once wit h t he burden of t he income. (1802a) Art . 2022. The annuit y may be const it ut ed upon t he life of t he person who gives t he capit al, upon t hat of a t hird person, or upon t he lives of various persons, all of whom must be living at t he t ime t he annuit y is est ablished. It may also be const it ut ed in favor of t he person or persons upon whose life or lives t he cont ract is ent ered int o, or in favor of anot her or ot her persons. (1803)
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Art . 2023. Life annuit y shall be void if const it ut ed upon t he life of a person who was already dead at t he t ime t he cont ract was ent ered int o, or who was at t hat t ime suffering from an illness which caused his deat h wit hin t went y day s following said dat e. (1804) Art . 2024. The lack of pay ment of t he income due does not aut horize t he recipient of t he life annuit y t o demand t he reimbursement of t he capit al or t o ret ake possession of t he propert y alienat ed, unless t here is a st ipulat ion t o t he cont rary ; he shall have only a right judicially t o claim t he pay ment of t he income in arrears and t o require a securit y for t he fut ure income, unless t here is a st ipulat ion t o t he cont rary . (1805a) Art . 2025. The income corresponding t o t he y ear in which t he person enjoy ing it dies shall be paid in proport ion t o t he day s during which he lived; if t he income should be paid by inst allment s in advance, t he whole amount of t he inst allment which began t o run during his life shall be paid. (1806) Art . 2026. He who const it ut es an annuit y by grat uit ous t it le upon his propert y , may provide at t he t ime t he annuit y is est ablished t hat t he same shall not be subject t o execut ion or at t achment on account of t he obligat ions of t he recipient of t he annuit y . If t he annuit y was const it ut ed in fraud of credit ors, t he lat t er may ask for t he execut ion or at t achment of t he propert y . (1807 a) Art . 2027 . No annuit y shall be claimed wit hout first proving t he exist ence of t he person upon whose life t he annuit y is const it ut ed. (1808) Tit le XIV. - COMPROMISES AND ARBITRATIONS CHAPTER 1 COMPROMISES Art . 2028. A compromise is a cont ract whereby t he part ies, by making reciprocal concessions, avoid a lit igat ion or put an end t o one already commenced. (1809a) Art . 2029. The court shall endeavor t o persuade t he lit igant s in a civil case t o agree upon some fair compromise. (n) Art . 2030. Every civil act ion or proceeding shall be suspended: (1) If willingness t o discuss a possible compromise is expressed by one or bot h part ies; or (2) If it appears t hat one of t he part ies, before t he commencement of t he act ion or proceeding, offered t o discuss a possible compromise but t he ot her part y refused t he offer. The durat ion and t erms of t he suspension of t he civil act ion or proceeding and similar mat t ers shall be governed by such provisions of t he rules of court as t he Supreme Court shall promulgat e. Said rules of court shall likewise provide for t he appoint ment and dut ies of amicable compounders. (n) Art . 2031. The court s may mit igat e t he damages t o be paid by t he losing part y who has shown a sincere desire for a compromise. (n) Art . 2032. The court 's approval is necessary in compromises ent ered int o by guardians, parent s, absent ee's represent at ives, and administ rat ors or execut ors of decedent 's est at es. (1810a) Art . 2033. Juridical persons may compromise only in t he form and wit h t he requisit es which may be necessary t o alienat e t heir propert y . (1812a) Art . 2034. There may be a compromise upon t he civil liabilit y arising from an offense; but such compromise shall not ext inguish t he public act ion for t he imposit ion of t he legal penalt y . (1813) Art . 2035. No compromise upon t he following quest ions shall be valid: (1) The civil st at us of persons; (2) The validit y of a marriage or a legal separat ion; (3) Any ground for legal separat ion; (4) Fut ure support ; (5) The jurisdict ion of court s; (6) Fut ure legit ime. (1814a) Art . 2036. A compromise comprises only t hose object s which are definit ely st at ed t herein, or which by necessary implicat ion from it s t erms should be deemed t o have been included in t he same. A general renunciat ion of right s is underst ood t o refer only t o t hose t hat are connect ed wit h t he disput e which was t he subject of t he compromise. (1815)
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Art . 2037 . A compromise has upon t he part ies t he effect and aut horit y of res judicat a; but t here shall be no execut ion except in compliance wit h a judicial compromise. (1816) Art . 2038. A compromise in which t here is mist ake, fraud, violence, int imidat ion, undue influence, or falsit y of document s, is subject t o t he provisions of Art icle 1330 of t his Code. However, one of part ies cannot set up a mist ake of fact as against t he ot her if t he lat t er, by virt ue of t he compromise, has wit hdrawn from a lit igat ion already commenced. (1817 a) Art . 2039. When t he part ies compromise generally on all differences which t hey might have wit h each ot her, t he discovery of document s referring t o one or more but not t o all of t he quest ions set t led shall not it self be a cause for annulment or rescission of t he compromise, unless said document s have been concealed by one of t he part ies. But t he compromise may be annulled or rescinded if it refers only t o one t hing t o which one of t he part ies has no right , as shown by t he newly -discovered document s. (n) Art . 2040. If aft er a lit igat ion has been decided by a final judgment , a compromise should be agreed upon, eit her or bot h part ies being unaware of t he exist ence of t he final judgment , t he compromise may be rescinded. Ignorance of a judgment which may be revoked or set aside is not a valid ground for at t acking a compromise. (1819a) Art . 2041. If one of t he part ies fails or refuses t o abide by t he compromise, t he ot her part y may eit her enforce t he compromise or regard it as rescinded and insist upon his original demand. (n) CHAPTER 2 ARBITRATIONS Art . 2042. The same persons who may ent er int o a compromise may submit t heir cont roversies t o one or more arbit rat ors for decision. (1820a) Art . 2043. The provisions of t he preceding Chapt er upon compromises shall also be applicable t o arbit rat ions. (1821a) Art . 2044. Any st ipulat ion t hat t he arbit rat ors' award or decision shall be final, is valid, wit hout prejudice t o Art icles 2038, 2039, and 2040. (n) Art . 2045. Any clause giving one of t he part ies power t o choose more arbit rat ors t han t he ot her is void and of no effect . (n) Art . 2046. The appoint ment of arbit rat ors and t he procedure for arbit rat ion shall be governed by t he provisions of such rules of court as t he Supreme Court shall promulgat e. (n) Tit le XV. - GUARANTY CHAPTER 1 NATURE AND EXTENT OF GUARANTY Art . 2047 . By guarant y a person, called t he guarant or, binds himself t o t he credit or t o fulfill t he obligat ion of t he principal debt or in case t he lat t er should fail t o do so. If a person binds himself solidarily wit h t he principal debt or, t he provisions of Sect ion 4, Chapt er 3, Tit le I of t his Book shall be observed. In such case t he cont ract is called a suret y ship. (1822a) Art . 2048. A guarant y is grat uit ous, unless t here is a st ipulat ion t o t he cont rary . (n) Art . 2049. A married woman may guarant ee an obligat ion wit hout t he husband's consent , but shall not t hereby bind t he conjugal part nership, except in cases provided by law. (n) Art . 2050. If a guarant y is ent ered int o wit hout t he knowledge or consent , or against t he will of t he principal debt or, t he provisions of Art icles 1236 and 1237 shall apply . (n) Art . 2051. A guarant y may be convent ional, legal or judicial, grat uit ous, or by onerous t it le. It may also be const it ut ed, not only in favor of t he principal debt or, but also in favor of t he ot her guarant or, wit h t he lat t er's consent , or wit hout his knowledge, or even over his object ion. (1823) Art . 2052. A guarant y cannot exist wit hout a valid obligat ion. Nevert heless, a guarant y may be const it ut ed t o guarant ee t he performance of a voidable or an unenforceable cont ract . It may also guarant ee a nat ural obligat ion. (1824a) Art . 2053. A guarant y may also be given as securit y for fut ure debt s, t he amount of which is not y et known; t here can
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be no claim against t he guarant or unt il t he debt is liquidat ed. A condit ional obligat ion may also be secured. (1825a) Art . 2054. A guarant or may bind himself for less, but not for more t han t he principal debt or, bot h as regards t he amount and t he onerous nat ure of t he condit ions. Should he have bound himself for more, his obligat ions shall be reduced t o t he limit s of t hat of t he debt or. (1826) Art . 2055. A guarant y is not presumed; it must be express and cannot ext end t o more t han what is st ipulat ed t herein. If it be simple or indefinit e, it shall compromise not only t he principal obligat ion, but also all it s accessories, including t he judicial cost s, provided wit h respect t o t he lat t er, t hat t he guarant or shall only be liable for t hose cost s incurred aft er he has been judicially required t o pay . (1827 a) Art . 2056. One who is obliged t o furnish a guarant or shall present a person who possesses int egrit y , capacit y t o bind himself, and sufficient propert y t o answer for t he obligat ion which he guarant ees. The guarant or shall be subject t o t he jurisdict ion of t he court of t he place where t his obligat ion is t o be complied wit h. (1828a) Art . 2057 . If t he guarant or should be convict ed in first inst ance of a crime involving dishonest y or should become insolvent , t he credit or may demand anot her who has all t he qualificat ions required in t he preceding art icle. The case is except ed where t he credit or has required and st ipulat ed t hat a specified person should be t he guarant or. (1829a) CHAPTER 2 EFFECTS OF GUARANTY SECTION 1. - Effect s of Guarant y Bet ween t he Guarant or and t he Credit or Art . 2058. The guarant or cannot be compelled t o pay t he credit or unless t he lat t er has exhaust ed all t he propert y of t he debt or, and has resort ed t o all t he legal remedies against t he debt or. (1830a) Art . 2059. The excussion shall not t ake place: (1) If t he guarant or has expressly renounced it ; (2) If he has bound himself solidarily wit h t he debt or; (3) In case of insolvency of t he debt or; (4) When he has absconded, or cannot be sued wit hin t he Philippines unless he has left a manager or represent at ive; (5) If it may be presumed t hat an execut ion on t he propert y of t he principal debt or would not result in t he sat isfact ion of t he obligat ion. (1831a) Art . 2060. In order t hat t he guarant or may make use of t he benefit of exclusion, he must set it up against t he credit or upon t he lat t er's demand for pay ment from him, and point out t o t he credit or available propert y of t he debt or wit hin Philippine t errit ory , sufficient t o cover t he amount of t he debt . (1832) Art . 2061. The guarant or having fulfilled all t he condit ions required in t he preceding art icle, t he credit or who is negligent in exhaust ing t he propert y point ed out shall suffer t he loss, t o t he ext ent of said propert y , for t he insolvency of t he debt or result ing from such negligence. (1833a) Art . 2062. In every act ion by t he credit or, which must be against t he principal debt or alone, except in t he cases ment ioned in Art icle 2059, t he former shall ask t he court t o not ify t he guarant or of t he act ion. The guarant or may appear so t hat he may , if he so desire, set up such defenses as are grant ed him by law. The benefit of excussion ment ioned in Art icle 2058 shall alway s be unimpaired, even if judgment sh ould be rendered against t he principal debt or and t he guarant or in case of appearance by t he lat t er. (1834a) Art . 2063. A compromise bet ween t he credit or and t he principal debt or benefit s t he guarant or but does not prejudice him. That which is ent ered int o bet ween t he guarant or and t he credit or benefit s but does not prejudice t he principal debt or. (1835a) Art . 2064. The guarant or of a guarant or shall enjoy t he benefit of excussion, bot h wit h respect t o t he guarant or and t o t he principal debt or. (1836) Art . 2065. Should t here be several guarant ors of only one debt or and for t he same debt , t he obligat ion t o answer for t he same is divided among all. The credit or cannot claim from t he guarant ors except t he shares which t hey are respect ively bound t o pay , unless solidarit y has been expressly st ipulat ed. The benefit of division against t he co-guarant ors ceases in t he same cases and for t he same reasons as t he benefit of excussion against t he principal debt or. (1837 )
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SECTION 2. - Effect s of Guarant y Bet ween t he Debt or and t he Guarant or Art . 2066. The guarant or who pay s for a debt or must be indemnified by t he lat t er. The indemnit y comprises: (1) The t ot al amount of t he debt ; (2) The legal int erest s t hereon from t he t ime t he pay ment was made known t o t he debt or, even t hough it did not earn int erest for t he credit or; (3) The expenses incurred by t he guarant or aft er having not ified t he debt or t hat pay ment had been demanded of him; (4) Damages, if t hey are due. (1838a) Art . 2067 . The guarant or who pay s is subrogat ed by virt ue t hereof t o all t he right s which t he credit or had against t he debt or. If t he guarant or has compromised wit h t he credit or, he cannot demand of t he debt or more t han what he has really paid. (1839) Art . 2068. If t he guarant or should pay wit hout not ify ing t he debt or, t he lat t er may enforce against him all t he defenses which he could have set up against t he credit or at t he t ime t he pay ment was made. (1840) Art . 2069. If t he debt was for a period and t he guarant or paid it before it became due, he cannot demand reimbursement of t he debt or unt il t he expirat ion of t he period unless t he pay ment has been rat ified by t he debt or. (1841a) Art . 207 0. If t he guarant or has paid wit hout not ify ing t he debt or, and t he lat t er not being aware of t he pay ment , repeat s t he pay ment , t he former has no remedy what ever against t he debt or, but only against t he credit or. Nevert heless, in case of a grat uit ous guarant y , if t he guarant or was prevent ed by a fort uit ous event from advising t he debt or of t he pay ment , and t he credit or becomes insolvent , t he debt or shall reimburse t he guarant or for t he amount paid. (1842a) Art . 207 1. The guarant or, even before having paid, may proceed against t he principal debt or: (1) When he is sued for t he pay ment ; (2) In case of insolvency of t he principal debt or; (3) When t he debt or has bound himself t o relieve him from t he guarant y wit hin a specified period, and t his period has expired; (4) When t he debt has become demandable, by reason of t he expirat ion of t he period for pay ment ; (5) Aft er t he lapse of t en y ears, when t he principal obligat ion has no fixed period for it s mat urit y , unless it be of such nat ure t hat it cannot be ext inguished except wit hin a period longer t han t en y ears; (6) If t here are reasonable grounds t o fear t hat t he principal debt or int ends t o abscond; (7 ) If t he principal debt or is in imminent danger of becoming insolvent . In all t hese cases, t he act ion of t he guarant or is t o obt ain release from t he guarant y , or t o demand a securit y t hat shall prot ect him from any proceedings by t he credit or and from t he danger of insolvency of t he debt or. (1834a) Art . 207 2. If one, at t he request of anot her, becomes a guarant or for t he debt of a t hird person who is not present , t he guarant or who sat isfies t he debt may sue eit her t he person so request ing or t he debt or for reimbursement . (n) SECTION 3. - Effect s of Guarant y as Bet ween Co-Guarant ors Art . 207 3. When t here are t wo or more guarant ors of t he same debt or and for t he same debt , t he one among t hem who has paid may demand of each of t he ot hers t he share which is proport ionally owing from him. If any of t he guarant ors should be insolvent , his share shall be borne by t he ot hers, including t he pay er, in t he same proport ion. The provisions of t his art icle shall not be applicable, unless t he pay ment has been made by virt ue of a judicial demand or unless t he principal debt or is insolvent . (1844a) Art . 207 4. In t he case of t he preceding art icle, t he co-guarant ors may set up against t he one who paid, t he same defenses which would have pert ained t o t he principal debt or against t he credit or, and which are not purely personal
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t o t he debt or. (1845) Art . 207 5. A sub-guarant or, in case of t he insolvency of t he guarant or for whom he bound himself, is responsible t o t he co-guarant ors in t he same t erms as t he guarant or. (1846) CHAPTER 3 EXTINGUISHMENT OF GUARANTY Art . 207 6. The obligat ion of t he guarant or is ext inguished at t he same t ime as t hat of t he debt or, and for t he same causes as all ot her obligat ions. (1847 ) Art . 207 7 . If t he credit or volunt arily accept s immovable or ot her propert y in pay ment of t he debt , even if he should aft erwards lose t he same t hrough evict ion, t he guarant or is released. (1849) Art . 207 8. A release made by t he credit or in favor of one of t he guarant ors, wit hout t he consent of t he ot hers, benefit s all t o t he ext ent of t he share of t he guarant or t o whom it has been grant ed. (1850) Art . 207 9. An ext ension grant ed t o t he debt or by t he credit or wit hout t he consent of t he guarant or ext inguishes t he guarant y . The mere failure on t he part of t he credit or t o demand pay ment aft er t he debt has become due does not of it self const it ut e any ext ent ion of t ime referred t o herein. (1851a) Art . 2080. The guarant ors, even t hough t hey be solidary , are released from t heir obligat ion whenever by some act of t he credit or t hey cannot be subrogat ed t o t he right s, mort gages, and preference of t he lat t er. (1852) Art . 2081. The guarant or may set up against t he credit or all t he defenses which pert ain t o t he principal debt or and are inherent in t he debt ; but not t hose t hat are personal t o t he debt or. (1853) CHAPTER 4 LEGAL AND JUDICIAL BONDS Art . 2082. The bondsman who is t o be offered in virt ue of a provision of law or of a judicial order shall have t he qualificat ions prescribed in Art icle 2056 and in special laws. (1854a) Art . 2083. If t he person bound t o give a bond in t he cases of t he preceding art icle, should not be able t o do so, a pledge or mort gage considered sufficient t o cover his obligat ion shall be admit t ed in lieu t hereof. (1855) Art . 2084. A judicial bondsman cannot demand t he exhaust ion of t he propert y of t he principal debt or. A sub-suret y in t he same case, cannot demand t he exhaust ion of t he propert y of t he debt or of t he suret y . Tit le XVI. - PLEDGE, MORTGAGE AND ANTICHRESIS CHAPTER 1 PROVISIONS COMMON TO PLEDGE AND MORTGAGE Art . 2085. The following requisit es are essent ial t o t he cont ract s of pledge and mort gage: (1) That t hey be const it ut ed t o secure t he fulfillment of a principal obligat ion; (2) That t he pledgor or mort gagor be t he absolut e owner of t he t hing pledged or mort gaged; (3) That t he persons const it ut ing t he pledge or mort gage have t he free disposal of t heir propert y , and in t he absence t hereof, t hat t hey be legally aut horized for t he purpose. Third persons who are not part ies t o t he principal obligat ion may secure t he lat t er by pledging or mort gaging t heir own propert y . (1857 ) Art . 2086. The provisions of Art icle 2052 are applicable t o a pledge or mort gage. (n) Art . 2087 . It is also of t he essence of t hese cont ract s t hat when t he principal obligat ion becomes due, t he t hings in which t he pledge or mort gage consist s may be alienat ed for t he pay ment t o t he credit or. (1858) Art . 2088. The credit or cannot appropriat e t he t hings given by way of pledge or mort gage, or dispose of t hem. Any st ipulat ion t o t he cont rary is null and void. (1859a) Art . 2089. A pledge or mort gage is indivisible, even t hough t he debt may be divided among t he successors in int erest of t he debt or or of t he credit or. Therefore, t he debt or's heir who has paid a part of t he debt cannot ask for t he proport ionat e ext inguishment of t he pledge or mort gage as long as t he debt is not complet ely sat isfied.
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Neit her can t he credit or's heir who received his share of t he debt ret urn t he pledge or cancel t he mort gage, t o t he prejudice of t he ot her heirs who have not been paid. From t hese provisions is expect ed t he case in which, t here being several t hings given in mort gage or pledge, each one of t hem guarant ees only a det erminat e port ion of t he credit . The debt or, in t his case, shall have a right t o t he ext inguishment of t he pledge or mort gage as t he port ion of t he debt for which each t hing is specially answerable is sat isfied. (1860) Art . 2090. The indivisibilit y of a pledge or mort gage is not affect ed by t he fact t hat t he debt ors are not solidarily liable. (n) Art . 2091. The cont ract of pledge or mort gage may secure all kinds of obligat ions, be t hey pure or subject t o a suspensive or resolut ory condit ion. (1861) Art . 2092. A promise t o const it ut e a pledge or mort gage gives rise only t o a personal act ion bet ween t he cont ract ing part ies, wit hout prejudice t o t he criminal responsibilit y incurred by him who defrauds anot her, by offering in pledge or mort gage as unencumbered, t hings which he knew were subject t o some burden, or by misrepresent ing himself t o be t he owner of t he same. (1862) CHAPTER 2 PLEDGE Art . 2093. In addit ion t o t he requisit es prescribed in Art icle 2085, it is necessary , in order t o const it ut e t he cont ract of pledge, t hat t he t hing pledged be placed in t he possession of t he credit or, or of a t hird person by common agreement . (1863) Art . 2094. All movables which are wit hin commerce may be pledged, provided t hey are suscept ible of possession. (1864) Art . 2095. Incorporeal right s, evidenced by negot iable inst rument s, bills of lading, shares of st ock, bonds, warehouse receipt s and similar document s may also be pledged. The inst rument proving t he right pledged shall be delivered t o t he credit or, and if negot iable, must be indorsed. (n) Art . 2096. A pledge shall not t ake effect against t hird persons if a descript ion of t he t hing pledged and t he dat e of t he pledge do not appear in a public inst rument . (1865a) Art . 2097 . Wit h t he consent of t he pledgee, t he t hing pledged may be alienat ed by t he pledgor or owner, subject t o t he pledge. The ownership of t he t hing pledged is t ransmit t ed t o t he vendee or t ransferee as soon as t he pledgee consent s t o t he alienat ion, but t he lat t er shall cont inue in possession. (n) Art . 2098. The cont ract of pledge gives a right t o t he credit or t o ret ain t he t hing in his possession or in t hat of a t hird person t o whom it has been delivered, unt il t he debt is paid. (1866a) Art . 2099. The credit or shall t ake care of t he t hing pledged wit h t he diligence of a good fat her of a family ; he has a right t o t he reimbursement of t he expenses made for it s preservat ion, and is liable for it s loss or det eriorat ion, in conformit y wit h t he provisions of t his Code. (1867 ) Art . 2100. The pledgee cannot deposit t he t hing pledged wit h a t hird person, unless t here is a st ipulat ion aut horizing him t o do so. The pledgee is responsible for t he act s of his agent s or employ ees wit h respect t o t he t hing pledged. (n) Art . 2101. The pledgor has t he same responsibilit y as a bailor in commodat um in t he case under Art icle 1951. (n) Art . 2102. If t he pledge earns or produces fruit s, income, dividends, or int erest s, t he credit or shall compensat e what he receives wit h t hose which are owing him; but if none are owing him, or insofar as t he amount may exceed t hat which is due, he shall apply it t o t he principal. Unless t here is a st ipulat ion t o t he cont rary , t he pledge shall ext end t o t he int erest and earnings of t he right pledged. In case of a pledge of animals, t heir offspring shall pert ain t o t he pledgor or owner of animals pledged, but shall be subject t o t he pledge, if t here is no st ipulat ion t o t he cont rary . (1868a) Art . 2103. Unless t he t hing pledged is expropriat ed, t he debt or cont inues t o be t he owner t hereof. Nevert heless, t he credit or may bring t he act ions which pert ain t o t he owner of t he t hing pledged in order t o recover it from, or defend it against a t hird person. (1869) Art . 2104. The credit or cannot use t he t hing pledged, wit hout t he aut horit y of t he owner, and if he should do so, or should misuse t he t hing in any ot her way , t he owner may ask t hat it be judicially or ext rajudicially deposit ed. When t he preservat ion of t he t hing pledged requires it s use, it must be used by t he credit or but only for t hat purpose. (187 0a)
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Art . 2105. The debt or cannot ask for t he ret urn of t he t hing pledged against t he will of t he credit or, unless and unt il he has paid t he debt and it s int erest , wit h expenses in a proper case. (187 1) Art . 2106. If t hrough t he negligence or wilful act of t he pledgee, t he t hing pledged is in danger of being lost or impaired, t he pledgor may require t hat it be deposit ed wit h a t hird person. (n) Art . 2107 . If t here are reasonable grounds t o fear t he dest ruct ion or impairment of t he t hing pledged, wit hout t he fault of t he pledgee, t he pledgor may demand t he ret urn of t he t hing, upon offering anot her t hing in pledge, provided t he lat t er is of t he same kind as t he former and not of inferior qualit y , and wit hout prejudice t o t he right of t he pledgee under t he provisions of t he following art icle. The pledgee is bound t o advise t he pledgor, wit hout delay , of any danger t o t he t hing pledged. (n) Art . 2108. If, wit hout t he fault of t he pledgee, t here is danger of dest ruct ion, impairment , or diminut ion in value of t he t hing pledged, he may cause t he same t o be sold at a public sale. The proceeds of t he auct ion shall be a securit y for t he principal obligat ion in t he same manner as t he t hing originally pledged. (n) Art . 2109. If t he credit or is deceived on t he subst ance or qualit y of t he t hing pledged, he may eit her claim anot her t hing in it s st ead, or demand immediat e pay ment of t he principal obligat ion. (n) Art . 2110. If t he t hing pledged is ret urned by t he pledgee t o t he pledgor or owner, t he pledge is ext inguished. Any st ipulat ion t o t he cont rary shall be void. If subsequent t o t he perfect ion of t he pledge, t he t hing is in t he possession of t he pledgor or owner, t here is a prima facie presumpt ion t hat t he same has been ret urned by t he pledgee. This same presumpt ion exist s if t he t hing pledged is in t he possession of a t hird person who has received it from t he pledgor or owner aft er t he const it ut ion of t he pledge. (n) Art . 2111. A st at ement in writ ing by t he pledgee t hat he renounces or abandons t he pledge is sufficient t o ext inguish t he pledge. For t his purpose, neit her t he accept ance by t he pledgor or owner, nor t he ret urn of t he t hing pledged is necessary , t he pledgee becoming a deposit ary . (n) Art . 2112. The credit or t o whom t he credit has not been sat isfied in due t ime, may proceed before a Not ary Public t o t he sale of t he t hing pledged. This sale shall be made at a public auct ion, and wit h not ificat ion t o t he debt or and t he owner of t he t hing pledged in a proper case, st at ing t he amount for which t he public sale is t o be held. If at t he first auct ion t he t hing is not sold, a second one wit h t he same formalit ies shall be held; and if at t he second auct ion t here is no sale eit her, t he credit or may appropriat e t he t hing pledged. In t his case he shall be obliged t o give an acquit t ance for his ent ire claim. (187 2a) Art . 2113. At t he public auct ion, t he pledgor or owner may bid. He shall, moreover, have a bet t er right if he should offer t he same t erms as t he highest bidder. The pledgee may also bid, but his offer shall not be valid if he is t he only bidder. (n) Art . 2114. All bids at t he public auct ion shall offer t o pay t he purchase price at once. If any ot her bid is accept ed, t he pledgee is deemed t o have been received t he purchase price, as far as t he pledgor or owner is concerned. (n) Art . 2115. The sale of t he t hing pledged shall ext inguish t he principal obligat ion, whet her or not t he proceeds of t he sale are equal t o t he amount of t he principal obligat ion, int erest and expenses in a proper case. If t he price of t he sale is more t han said amount , t he debt or shall not be ent it led t o t he excess, unless it is ot herwise agreed. If t he price of t he sale is less, neit her shall t he credit or be ent it led t o recover t he deficiency , not wit hst anding any st ipulat ion t o t he cont rary . (n) Art . 2116. Aft er t he public auct ion, t he pledgee shall prompt ly advise t he pledgor or owner of t he result t hereof. (n) Art . 2117 . Any t hird person who has any right in or t o t he t hing pledged may sat isfy t he principal obligat ion as soon as t he lat t er becomes due and demandable.(n) Art . 2118. If a credit which has been pledged becomes due before it is redeemed, t he pledgee may collect and receive t he amount due. He shall apply t he same t o t he pay ment of his claim, and deliver t he surplus, should t here be any , t o t he pledgor. (n) Art . 2119. If t wo or more t hings are pledged, t he pledgee may choose which he will cause t o be sold, unless t here is a st ipulat ion t o t he cont rary . He may demand t he sale of only as many of t he t hings as are necessary for t he pay ment of t he debt . (n) Art . 2120. If a t hird part y secures an obligat ion by pledging his own movable propert y under t he provisions of Art icle 2085 he shall have t he same right s as a guarant or under Art icles 2066 t o 207 0, and Art icles 207 7 t o 2081. He is not prejudiced by any waiver of defense by t he principal obligor. (n) Art . 2121. Pledges creat ed by operat ion of law, such as t hose referred t o in Art icles 546, 17 31, and 1994, are governed by t he foregoing art icles on t he possession, care and sale of t he t hing as well as on t he t erminat ion of t he pledge. However, aft er pay ment of t he debt and expenses, t he remainder of t he price of t he sale shall be delivered t o t he obligor. (n)
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Art . 2122. A t hing under a pledge by operat ion of law may be sold only aft er demand of t he amount for which t he t hing is ret ained. The public auct ion shall t ake place wit hin one mont h aft er such demand. If, wit hout just grounds, t he credit or does not cause t he public sale t o be held wit hin such period, t he debt or may require t he ret urn of t he t hing. (n) Art . 2123. Wit h regard t o pawnshops and ot her est ablishment s, which are engaged in making loans secured by pledges, t he special laws and regulat ions concerning t hem shall be observed, and subsidiarily , t he provisions of t his Tit le. (187 3a) CHAPTER 3 MORTGAGE Art . 2124. Only t he following propert y may be t he object of a cont ract of mort gage: (1) Immovables; (2) Alienable real right s in accordance wit h t he laws, imposed upon immovables. Nevert heless, movables may be t he object of a chat t el mort gage. (187 4a) Art . 2125. In addit ion t o t he requisit es st at ed in Art icle 2085, it is indispensable, in order t hat a mort gage may be validly const it ut ed, t hat t he document in which it appears be recorded in t he Regist ry of Propert y . If t he inst rument is not recorded, t he mort gage is nevert heless binding bet ween t he part ies. The persons in whose favor t he law est ablishes a mort gage have no ot her right t han t o demand t he execut ion and t he recording of t he document in which t he mort gage is formalized. (187 5a) Art . 2126. The mort gage direct ly and immediat ely subject s t he propert y upon which it is imposed, whoever t he possessor may be, t o t he fulfillment of t he obligat ion for whose securit y it was const it ut ed. (187 6) Art . 2127 . The mort gage ext ends t o t he nat ural accessions, t o t he improvement s, growing fruit s, and t he rent s or income not y et received when t he obligat ion becomes due, and t o t he amount of t he indemnit y grant ed or owing t o t he propriet or from t he insurers of t he propert y mort gaged, or in virt ue of expropriat ion for public use, wit h t he declarat ions, amplificat ions and limit at ions est ablished by law, whet her t he est at e remains in t he possession of t he mort gagor, or it passes int o t he hands of a t hird person. (187 7 ) Art . 2128. The mort gage credit may be alienat ed or assigned t o a t hird person, in whole or in part , wit h t he formalit ies required by law. (187 8) Art . 2129. The credit or may claim from a t hird person in possession of t he mort gaged propert y , t he pay ment of t he part of t he credit secured by t he propert y which said t hird person possesses, in t he t erms and wit h t he formalit ies which t he law est ablishes. (187 9) Art . 2130. A st ipulat ion forbidding t he owner from alienat ing t he immovable mort gaged shall be void. (n) Art . 2131. The form, ext ent and consequences of a mort gage, bot h as t o it s const it ut ion, modificat ion and ext inguishment , and as t o ot her mat t ers not included in t his Chapt er, shall be governed by t he provisions of t he Mort gage Law and of t he Land Regist rat ion Law. (1880a) CHAPTER 4 ANTICHRESIS Art . 2132. By t he cont ract of ant ichresis t he credit or acquires t he right t o receive t he fruit s of an immovable of his debt or, wit h t he obligat ion t o apply t hem t o t he pay ment of t he int erest , if owing, and t hereaft er t o t he principal of his credit . (1881) Art . 2133. The act ual market value of t he fruit s at t he t ime of t he applicat ion t hereof t o t he int erest and principal shall be t he measure of such applicat ion. (n) Art . 2134. The amount of t he principal and of t he int erest shall be specified in writ ing; ot herwise, t he cont ract of ant ichresis shall be void. (n) Art . 2135. The credit or, unless t here is a st ipulat ion t o t he cont rary , is obliged t o pay t he t axes and charges upon t he est at e. He is also bound t o bear t he expenses necessary for it s preservat ion and repair. The sums spent for t he purposes st at ed in t his art icle shall be deduct ed from t he fruit s. (1882) Art . 2136. The debt or cannot reacquire t he enjoy ment of t he immovable wit hout first having t ot ally paid what he owes t he credit or.
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But t he lat t er, in order t o exempt himself from t he obligat ions imposed upon him by t he preceding art icle, may alway s compel t he debt or t o ent er again upon t he enjoy ment of t he propert y , except when t here is a st ipulat ion t o t he cont rary . (1883) Art . 2137 . The credit or does not acquire t he ownership of t he real est at e for non-pay ment of t he debt wit hin t he period agreed upon. Every st ipulat ion t o t he cont rary shall be void. But t he credit or may pet it ion t he court for t he pay ment of t he debt or t he sale of t he real propert y . In t his case, t he Rules of Court on t he foreclosure of mort gages shall apply . (1884a) Art . 2138. The cont ract ing part ies may st ipulat e t hat t he int erest upon t he debt be compensat ed wit h t he fruit s of t he propert y which is t he object of t he ant ichresis, provided t hat if t he value of t he fruit s should exceed t he amount of int erest allowed by t he laws against usury , t he excess shall be applied t o t he principal. (1885a) Art . 2139. The last paragraph of Art icle 2085, and Art icles 2089 t o 2091 are applicable t o t his cont ract . (1886a) CHAPTER 5 CHATTEL MORTGAGE Art . 2140. By a chat t el mort gage, personal propert y is recorded in t he Chat t el Mort gage Regist er as a securit y for t he performance of an obligat ion. If t he movable, inst ead of being recorded, is delivered t o t he credit or or a t hird person, t he cont ract is a pledge and not a chat t el mort gage. (n) Art . 2141. The provisions of t his Code on pledge, insofar as t hey are not in conflict wit h t he Chat t el Mort gage Law shall be applicable t o chat t el mort gages. (n) Tit le XVII. - EXTRA-CONTRACTUAL OBLIGATIONS CHAPTER 1 QUASI-CONTRACTS Art . 2142. Cert ain lawful, volunt ary and unilat eral act s give rise t o t he juridical relat ion of quasi-cont ract t o t he end t hat no one shall be unjust ly enriched or benefit ed at t he expense of anot her. (n) Art . 2143. The provisions for quasi-cont ract s in t his Chapt er do not exclude ot her quasi-cont ract s which may come wit hin t he purview of t he preceding art icle. (n) SECTION 1. - Negotiorum Gestio Art . 2144. Whoever volunt arily t akes charge of t he agency or management of t he business or propert y of anot her, wit hout any power from t he lat t er, is obliged t o cont inue t he same unt il t he t erminat ion of t he affair and it s incident s, or t o require t he person concerned t o subst it ut e him, if t he owner is in a posit ion t o do so. This juridical relat ion does not arise in eit her of t hese inst ances: (1) When t he propert y or business is not neglect ed or abandoned; (2) If in fact t he manager has been t acit ly aut horized by t he owner. In t he first case, t he provisions of Art icles 1317 , 1403, No. 1, and 1404 regarding unaut horized cont ract s shall govern. In t he second case, t he rules on agency in Tit le X of t his Book shall be applicable. (1888a) Art . 2145. The officious manager shall perform his dut ies wit h all t he diligence of a good fat her of a family , and pay t he damages which t hrough his fault or negligence may be suffered by t he owner of t he propert y or business under management . The court s may , however, increase or moderat e t he indemnit y according t o t he circumst ances of each case. (1889a) Art . 2146. If t he officious manager delegat es t o anot her person all or some of his dut ies, he shall be liable for t he act s of t he delegat e, wit hout prejudice t o t he direct obligat ion of t he lat t er t oward t he owner of t he business. The responsibilit y of t wo or more officious managers shall be solidary , unless t he management was assumed t o save t he t hing or business from imminent danger. (1890a) Art . 2147 . The officious manager shall be liable for any fort uit ous event : (1) If he undert akes risky operat ions which t he owner was not accust omed t o embark upon; (2) If he has preferred his own int erest t o t hat of t he owner;
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(3) If he fails t o ret urn t he propert y or business aft er demand by t he owner; (4) If he assumed t he management in bad fait h. (1891a) Art . 2148. Except when t he management was assumed t o save propert y or business from imminent danger, t he officious manager shall be liable for fort uit ous event s: (1) If he is manifest ly unfit t o carry on t he management ; (2) If by his int ervent ion he prevent ed a more compet ent person from t aking up t he management . (n) Art . 2149. The rat ificat ion of t he management by t he owner of t he business produces t he effect s of an express agency , even if t he business may not have been successful. (1892a) Art . 2150. Alt hough t he officious management may not have been expressly rat ified, t he owner of t he propert y or business who enjoy s t he advant ages of t he same shall be liable for obligat ions incurred in his int erest , and shall reimburse t he officious manager for t he necessary and useful expenses and for t he damages which t he lat t er may have suffered in t he performance of his dut ies. The same obligat ion shall be incumbent upon him when t he management had for it s purpose t he prevent ion of an imminent and manifest loss, alt hough no benefit may have been derived. (1893) Art . 2151. Even t hough t he owner did not derive any benefit and t here has been no imminent and manifest danger t o t he propert y or business, t he owner is liable as under t he first paragraph of t he preceding art icle, provided: (1) The officious manager has act ed in good fait h, and (2) The propert y or business is int act , ready t o be ret urned t o t he owner. (n) Art . 2152. The officious manager is personally liable for cont ract s which he has ent ered int o wit h t hird persons, even t hough he act ed in t he name of t he owner, and t here shall be no right of act ion bet ween t he owner and t hird persons. These provisions shall not apply : (1) If t he owner has expressly or t acit ly rat ified t he management , or (2) When t he cont ract refers t o t hings pert aining t o t he owner of t he business. (n) Art . 2153. The management is ext inguished: (1) When t he owner repudiat es it or put s an end t heret o; (2) When t he officious manager wit hdraws from t he management , subject t o t he provisions of Art icle 2144; (3) By t he deat h, civil int erdict ion, insanit y or insolvency of t he owner or t he officious manager. (n) SECTION 2. - Solutio Indebiti Art . 2154. If somet hing is received when t here is no right t o demand it , and it was unduly delivered t hrough mist ake, t he obligat ion t o ret urn it arises. (1895) Art . 2155. Pay ment by reason of a mist ake in t he const ruct ion or applicat ion of a doubt ful or difficult quest ion of law may come wit hin t he scope of t he preceding art icle. (n) Art . 2156. If t he pay er was in doubt whet her t he debt was due, he may recover if he proves t hat it was not due. (n) Art . 2157 . The responsibilit y of t wo or more pay ees, when t here has been pay ment of what is not due, is solidary . (n) Art . 2158. When t he propert y delivered or money paid belongs t o a t hird person, t he pay ee shall comply wit h t he provisions of art icle 1984. (n) Art . 2159. Whoever in bad fait h accept s an undue pay ment , shall pay legal int erest if a sum of money is involved, or shall be liable for fruit s received or which should have been received if t he t hing produces fruit s. He shall furt hermore be answerable for any loss or impairment of t he t hing from any cause, and for damages t o t he person who delivered t he t hing, unt il it is recovered. (1896a) Art . 2160. He who in good fait h accept s an undue pay ment of a t hing cert ain and det erminat e shall only be responsible for t he impairment or loss of t he same or it s accessories and accessions insofar as he has t hereby been benefit ed. If he has alienat ed it , he shall ret urn t he price or assign t he act ion t o collect t he sum. (1897 ) Art . 2161. As regards t he reimbursement for improvement s and expenses incurred by him who unduly received t he t hing, t he provisions of Tit le V of Book II shall govern. (1898)
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Art . 2162. He shall be exempt from t he obligat ion t o rest ore who, believing in good fait h t hat t he pay ment was being made of a legit imat e and subsist ing claim, dest roy ed t he document , or allowed t he act ion t o prescribe, or gave up t he pledges, or cancelled t he guarant ies for his right . He who paid unduly may proceed only against t he t rue debt or or t he guarant ors wit h regard t o whom t he act ion is st ill effect ive. (1899) Art . 2163. It is presumed t hat t here was a mist ake in t he pay ment if somet hing which had never been due or had already been paid was delivered; but he from whom t he ret urn is claimed may prove t hat t he delivery was made out of liberalit y or for any ot her just cause. (1901) SECTION 3. - Ot her Quasi-Cont ract s Art . 2164. When, wit hout t he knowledge of t he person obliged t o give support , it is given by a st ranger, t he lat t er shall have a right t o claim t he same from t he former, unless it appears t hat he gave it out of piet y and wit hout int ent ion of being repaid. (1894a) Art . 2165. When funeral expenses are borne by a t hird person, wit hout t he knowledge of t hose relat ives who were obliged t o give support t o t he deceased, said relat ives shall reimburse t he t hird person, should t he lat t er claim reimbursement . (1894a) Art . 2166. When t he person obliged t o support an orphan, or an insane or ot her indigent person unjust ly refuses t o give support t o t he lat t er, any t hird person may furnish support t o t he needy individual, wit h right of reimbursement from t he person obliged t o give suppor t . The provisions of t his art icle apply when t he fat her or mot her of a child under eight een y ears of age unjust ly refuses t o support him. Art . 2167 . When t hrough an accident or ot her cause a person is injured or becomes seriously ill, and he is t reat ed or helped while he is not in a condit ion t o give consent t o a cont ract , he shall be liable t o pay for t he services of t he phy sician or ot her person aiding him, unless t he service has been rendered out of pure generosit y . Art . 2168. When during a fire, flood, st orm, or ot her calamit y , propert y is saved from dest ruct ion by anot her person wit hout t he knowledge of t he owner, t he lat t er is bound t o pay t he former just compensat ion. Art . 2169. When t he government , upon t he failure of any person t o comply wit h healt h or safet y regulat ions concerning propert y , undert akes t o do t he necessary work, even over his object ion, he shall be liable t o pay t he expenses. Art . 217 0. When by accident or ot her fort uit ous event , movables separat ely pert aining t o t wo or more persons are commingled or confused, t he rules on co-ownership shall be applicable. Art . 217 1. The right s and obligat ions of t he finder of lost personal propert y shall be governed by Art icles 7 19 and 7 20. Art . 217 2. The right of every possessor in good fait h t o reimbursement for necessary and useful expenses is governed by Art icle 546. Art . 217 3. When a t hird person, wit hout t he knowledge of t he debt or, pay s t he debt , t he right s of t he former are governed by Art icles 1236 and 1237 . Art . 217 4. When in a small communit y a nat ionalit y of t he inhabit ant s of age decide upon a measure for prot ect ion against lawlessness, fire, flood, st orm or ot her calamit y , any one who object s t o t he plan and refuses t o cont ribut e t o t he expenses but is benefit ed by t he project as execut ed shall be liable t o pay his share of said expenses. Art . 217 5. Any person who is const rained t o pay t he t axes of anot her shall be ent it led t o reimbursement from t he lat t er. CHAPTER 2 QUASI-DELICTS Art . 217 6. Whoever by act or omission causes damage t o anot her, t here being fault or negligence, is obliged t o pay for t he damage done. Such fault or negligence, if t here is no pre-exist ing cont ract ual relat ion bet ween t he part ies, is called a quasi-delict and is governed by t he provisions of t his Chapt er. (1902a) Art . 217 7 . Responsibilit y for fault or negligence under t he preceding art icle is ent irely separat e and dist inct from t he civil liabilit y arising from negligence under t he Penal Code. But t he plaint iff cannot recover damages t wice for t he same act or omission of t he defendant . (n) Art . 217 8. The provisions of Art icles 117 2 t o 117 4 are also applicable t o a quasi-delict . (n) Art . 217 9. When t he plaint iff's own negligence was t he immediat e and proximat e cause of his injury , he cannot recover damages. But if his negligence was only cont ribut ory , t he immediat e and proximat e cause of t he injury being t he defendant 's lack of due care, t he plaint iff may recover damages, but t he court s shall mit igat e t he damages t o be awarded. (n)
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Art . 2180. The obligat ion imposed by Art icle 217 6 is demandable not only for one's own act s or omissions, but also for t hose of persons for whom one is responsible. The fat her and, in case of his deat h or incapacit y , t he mot her, are responsible for t he damages caused by t he minor children who live in t heir company . Guardians are liable for damages caused by t he minors or incapacit at ed persons who are under t heir aut horit y and live in t heir company . The owners and managers of an est ablishment or ent erprise are likewise responsible for damages caused by t heir employ ees in t he service of t he branches in which t he lat t er are employ ed or on t he occasion of t heir funct ions. Employ ers shall be liable for t he damages caused by t heir employ ees and household helpers act ing wit hin t he scope of t heir assigned t asks, even t hough t he former are not engaged in any business or indust ry . The St at e is responsible in like manner when it act s t hrough a special agent ; but not when t he damage has been caused by t he official t o whom t he t ask done properly pert ains, in which case what is provided in Art icle 217 6 shall be applicable. Last ly , t eachers or heads of est ablishment s of art s and t rades shall be liable for damages caused by t heir pupils and st udent s or apprent ices, so long as t hey remain in t heir cust ody . The responsibilit y t reat ed of in t his art icle shall cease when t he persons herein ment ioned prove t hat t hey observed all t he diligence of a good fat her of a family t o prevent damage. (1903a) Art . 2181. Whoever pay s for t he damage caused by his dependent s or employ ees may recover from t he lat t er what he has paid or delivered in sat isfact ion of t he claim. (1904) Art . 2182. If t he minor or insane person causing damage has no parent s or guardian, t he minor or insane person shall be answerable wit h his own propert y in an act ion against him where a guardian ad lit em shall be appoint ed. (n) Art . 2183. The possessor of an animal or whoever may make use of t he same is responsible for t he damage which it may cause, alt hough it may escape or be lost . This responsibilit y shall cease only in case t he damage should come from force majeure or from t he fault of t he person who has suffered damage. (1905) Art . 2184. In mot or vehicle mishaps, t he owner is solidarily liable wit h his driver, if t he former, who was in t he vehicle, could have, by t he use of t he due diligence, prevent ed t he misfort une. It is disput ably presumed t hat a driver was negligent , if he had been found guilt y or reckless driving or violat ing t raffic regulat ions at least t wice wit hin t he next preceding t wo mont hs. If t he owner was not in t he mot or vehicle, t he provisions of Art icle 2180 are applicable. (n) Art . 2185. Unless t here is proof t o t he cont rary , it is presumed t hat a person driving a mot or vehicle has been negligent if at t he t ime of t he mishap, he was violat ing any t raffic regulat ion. (n) Art . 2186. Every owner of a mot or vehicle shall file wit h t he proper government office a bond execut ed by a government -cont rolled corporat ion or office, t o answer for damages t o t hird persons. The amount of t he bond and ot her t erms shall be fixed by t he compet ent public official. (n) Art . 2187 . Manufact urers and processors of foodst uffs, drinks, t oilet art icles and similar goods shall be liable for deat h or injuries caused by any noxious or harmful subst ances used, alt hough no cont ract ual relat ion exist s bet ween t hem and t he consumers. (n) Art . 2188. There is prima facie presumpt ion of negligence on t he part of t he defendant if t he deat h or injury result s from his possession of dangerous weapons or subst ances, such as firearms and poison, except when t he possession or use t hereof is indispensable in his occupat ion or business. (n) Art . 2189. Provinces, cit ies and municipalit ies shall be liable for damages for t he deat h of, or injuries suffered by , any person by reason of t he defect ive condit ion of roads, st reet s, bridges, public buildings, and ot her public works under t heir cont rol or supervision. (n) Art . 2190. The propriet or of a building or st ruct ure is responsible for t he damages result ing from it s t ot al or part ial collapse, if it should be due t o t he lack of necessary repairs. (1907 ) Art . 2191. Propriet ors shall also be responsible for damages caused: (1) By t he explosion of machinery which has not been t aken care of wit h due diligence, and t he inflammat ion of explosive subst ances which have not been kept in a safe and adequat e place; (2) By excessive smoke, which may be harmful t o persons or propert y ; (3) By t he falling of t rees sit uat ed at or near highway s or lanes, if not caused by force majeure; (4) By emanat ions from t ubes, canals, sewers or deposit s of infect ious mat t er, const ruct ed wit hout precaut ions
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suit able t o t he place. (1908) Art . 2192. If damage referred t o in t he t wo preceding art icles should be t he result of any defect in t he const ruct ion ment ioned in Art icle 17 23, t he t hird person suffering damages may proceed only against t he engineer or archit ect or cont ract or in accordance wit h said art icle, wit hin t he period t herein fixed. (1909) Art . 2193. The head of a family t hat lives in a building or a part t hereof, is responsible for damages caused by t hings t hrown or falling from t he same. (1910) Art . 2194. The responsibilit y of t wo or more persons who are liable for quasi-delict is solidary . (n) Tit le XVIII. - DAMAGES CHAPTER 1 GENERAL PROVISIONS Art . 2195. The provisions of t his Tit le shall be respect ively applicable t o all obligat ions ment ioned in Art icle 1157 . Art . 2196. The rules under t his Tit le are wit hout prejudice t o special provisions on damages formulat ed elsewhere in t his Code. Compensat ion for workmen and ot her employ ees in case of deat h, injury or illness is regulat ed by special laws. Rules governing damages laid down in ot her laws shall be observed insofar as t hey are not in conflict wit h t his Code. Art . 2197 . Damages may be: (1) Act ual or compensat ory ; (2) Moral; (3) Nominal; (4) Temperat e or moderat e; (5) Liquidat ed; or (6) Exemplary or correct ive. Art . 2198. The principles of t he general law on damages are hereby adopt ed insofar as t hey are not inconsist ent wit h t his Code. CHAPTER 2 ACTUAL OR COMPENSATORY DAMAGES Art . 2199. Except as provided by law or by st ipulat ion, one is ent it led t o an adequat e compensat ion only for such pecuniary loss suffered by him as he has duly proved. Such compensat ion is referred t o as act ual or compensat ory damages. Art . 2200. Indemnificat ion for damages shall comprehend not only t he value of t he loss suffered, but also t hat of t he profit s which t he obligee failed t o obt ain. (1106) Art . 2201. In cont ract s and quasi-cont ract s, t he damages for which t he obligor who act ed in good fait h is liable shall be t hose t hat are t he nat ural and probable consequences of t he breach of t he obligat ion, and which t he part ies have foreseen or could have reasonably foreseen at t he t ime t he obligat ion was const it ut ed. In case of fraud, bad fait h, malice or want on at t it ude, t he obligor shall be responsible for all damages which may be reasonably at t ribut ed t o t he non-performance of t he obligat ion. (1107 a) Art . 2202. In crimes and quasi-delict s, t he defendant shall be liable for all damages which are t he nat ural and probable consequences of t he act or omission complained of. It is not necessary t hat such damages have been foreseen or could have reasonably been foreseen by t he defendant . Art . 2203. The part y suffering loss or injury must exercise t he diligence of a good fat her of a family t o minimize t he damages result ing from t he act or omission in quest ion. Art . 2204. In crimes, t he damages t o be adjudicat ed may be respect ively increased or lessened according t o t he aggravat ing or mit igat ing circumst ances. Art . 2205. Damages may be recovered: (1) For loss or impairment of earning capacit y in cases of t emporary or permanent personal injury ; (2) For injury t o t he plaint iff's business st anding or commercial credit .
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Art . 2206. The amount of damages for deat h caused by a crime or quasi-delict shall be at least t hree t housand pesos, even t hough t here may have been mit igat ing circumst ances. In addit ion: (1) The defendant shall be liable for t he loss of t he earning capacit y of t he deceased, and t he indemnit y shall be paid t o t he heirs of t he lat t er; such indemnit y shall in every case be assessed and awarded by t he court , unless t he deceased on account of permanent phy sical disabilit y not caused by t he defendant , had no earning capacit y at t he t ime of his deat h; (2) If t he deceased was obliged t o give support according t o t he provisions of Art icle 291, t he recipient who is not an heir called t o t he decedent 's inherit ance by t he law of t est at e or int est at e succession, may demand support from t he person causing t he deat h, for a period not exceeding five y ears, t he exact durat ion t o be fixed by t he court ; (3) The spouse, legit imat e and illegit imat e descendant s and ascendant s of t he deceased may demand moral damages for ment al anguish by reason of t he deat h of t he deceased. Art . 2207 . If t he plaint iff's propert y has been insured, and he has received indemnit y from t he insurance company for t he injury or loss arising out of t he wrong or breach of cont ract complained of, t he insurance company shall be subrogat ed t o t he right s of t he insured against t he wrongdoer or t he person who has violat ed t he cont ract . If t he amount paid by t he insurance company does not fully cover t he injury or loss, t he aggrieved part y shall be ent it led t o recover t he deficiency from t he person causing t he loss or injury . Art . 2208. In t he absence of st ipulat ion, at t orney 's fees and expenses of lit igat ion, ot her t han judicial cost s, cannot be recovered, except : (1) When exemplary damages are awarded; (2) When t he defendant 's act or omission has compelled t he plaint iff t o lit igat e wit h t hird persons or t o incur expenses t o prot ect his int erest ; (3) In criminal cases of malicious prosecut ion against t he plaint iff; (4) In case of a clearly unfounded civil act ion or proceeding against t he plaint iff; (5) Where t he defendant act ed in gross and evident bad fait h in refusing t o sat isfy t he plaint iff's plainly valid, just and demandable claim; (6) In act ions for legal support ; (7 ) In act ions for t he recovery of wages of household helpers, laborers and skilled workers; (8) In act ions for indemnit y under workmen's compensat ion and employ er's liabilit y laws; (9) In a separat e civil act ion t o recover civil liabilit y arising from a crime; (10) When at least double judicial cost s are awarded; (11) In any ot her case where t he court deems it just and equit able t hat at t orney 's fees and expenses of lit igat ion should be recovered. In all cases, t he at t orney 's fees and expenses of lit igat ion must be reasonable. Art . 2209. If t he obligat ion consist s in t he pay ment of a sum of money , and t he debt or incurs in delay , t he indemnit y for damages, t here being no st ipulat ion t o t he cont rary , shall be t he pay ment of t he int erest agreed upon, and in t he absence of st ipulat ion, t he legal int erest , which is six per cent per annum. (1108) Art . 2210. Int erest may , in t he discret ion of t he court , be allowed upon damages awarded for breach of cont ract . Art . 2211. In crimes and quasi-delict s, int erest as a part of t he damages may , in a proper case, be adjudicat ed in t he discret ion of t he court . Art . 2212. Int erest due shall earn legal int erest from t he t ime it is judicially demanded, alt hough t he obligat ion may be silent upon t his point . (1109a) Art . 2213. Int erest cannot be recovered upon unliquidat ed claims or damages, except when t he demand can be est ablished wit h reasonably cert aint y . Art . 2214. In quasi-delict s, t he cont ribut ory negligence of t he plaint iff shall reduce t he damages t hat he may recover. Art . 2215. In cont ract s, quasi-cont ract s, and quasi-delict s, t he court may equit ably mit igat e t he damages under circumst ances ot her t han t he case referred t o in t he preceding art icle, as in t he following inst ances: (1) That t he plaint iff himself has cont ravened t he t erms of t he cont ract ;
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(2) That t he plaint iff has derived some benefit as a result of t he cont ract ; (3) In cases where exemplary damages are t o be awarded, t hat t he defendant act ed upon t he advice of counsel; (4) That t he loss would have result ed in any event ; (5) That since t he filing of t he act ion, t he defendant has done his best t o lessen t he plaint iff's loss or injury . CHAPTER 3 OTHER KINDS OF DAMAGES Art . 2216. No proof of pecuniary loss is necessary in order t hat moral, nominal, t emperat e, liquidat ed or exemplary damages, may be adjudicat ed. The assessment of such damages, except liquidat ed ones, is left t o t he discret ion of t he court , according t o t he circumst ances of each case. SECTION 1. - Moral Damages Art . 2217 . Moral damages include phy sical suffering, ment al anguish, fright , serious anxiet y , besmirched reput at ion, wounded feelings, moral shock, social humiliat ion, and similar injury . Though incapable of pecuniary comput at ion, moral damages may be recovered if t hey are t he proximat e result of t he defendant 's wrongful act for omission. Art . 2218. In t he adjudicat ion of moral damages, t he sent iment al value of propert y , real or personal, may be considered. Art . 2219. Moral damages may be recovered in t he following and analogous cases: (1) A criminal offense result ing in phy sical injuries; (2) Quasi-delict s causing phy sical injuries; (3) Seduct ion, abduct ion, rape, or ot her lascivious act s; (4) Adult ery or concubinage; (5) Illegal or arbit rary det ent ion or arrest ; (6) Illegal search; (7 ) Libel, slander or any ot her form of defamat ion; (8) Malicious prosecut ion; (9) Act s ment ioned in Art icle 309; (10) Act s and act ions referred t o in Art icles 21, 26, 27 , 28, 29, 30, 32, 34, and 35. The parent s of t he female seduced, abduct ed, raped, or abused, referred t o in No. 3 of t his art icle, may also recover moral damages. The spouse, descendant s, ascendant s, and brot hers and sist ers may bring t he act ion ment ioned in No. 9 of t his art icle, in t he order named. Art . 2220. Willful injury t o propert y may be a legal ground for awarding moral damages if t he court should find t hat , under t he circumst ances, such damages are just ly due. The same rule applies t o breaches of cont ract where t he defendant act ed fraudulent ly or in bad fait h. SECTION 2. - Nominal Damages Art . 2221. Nominal damages are adjudicat ed in order t hat a right of t he plaint iff, which has been violat ed or invaded by t he defendant , may be vindicat ed or recognized, and not for t he purpose of indemnify ing t he plaint iff for any loss suffered by him. Art . 2222. The court may award nominal damages in every obligat ion arising from any source enumerat ed in Art icle 1157 , or in every case where any propert y right has been invaded. Art . 2223. The adjudicat ion of nominal damages shall preclude furt her cont est upon t he right involved and all accessory quest ions, as bet ween t he part ies t o t he suit , or t heir respect ive heirs and assigns. SECTION 3. - Temperat e or Moderat e Damages Art . 2224. Temperat e or moderat e damages, which are more t han nominal but less t han compensat ory damages, may
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be recovered when t he court finds t hat some pecuniary loss has been suffered but it s amount can not , from t he nat ure of t he case, be provided wit h cert aint y . Art . 2225. Temperat e damages must be reasonable under t he circumst ances. SECTION 4. - Liquidat ed Damages Art . 2226. Liquidat ed damages are t hose agreed upon by t he part ies t o a cont ract , t o be paid in case of breach t hereof. Art . 2227 . Liquidat ed damages, whet her int ended as an indemnit y or a penalt y , shall be equit ably reduced if t hey are iniquit ous or unconscionable. Art . 2228. When t he breach of t he cont ract commit t ed by t he defendant is not t he one cont emplat ed by t he part ies in agreeing upon t he liquidat ed damages, t he law shall det ermine t he measure of damages, and not t he st ipulat ion. SECTION 5. - Exemplary or Correct ive Damages Art . 2229. Exemplary or correct ive damages are imposed, by way of example or correct ion for t he public good, in addit ion t o t he moral, t emperat e, liquidat ed or compensat ory damages. Art . 2230. In criminal offenses, exemplary damages as a part of t he civil liabilit y may be imposed when t he crime was commit t ed wit h one or more aggravat ing circumst ances. Such damages are separat e and dist inct from fines and shall be paid t o t he offended part y . Art . 2231. In quasi-delict s, exemplary damages may be grant ed if t he defendant act ed wit h gross negligence. Art . 2232. In cont ract s and quasi-cont ract s, t he court may award exemplary damages if t he defendant act ed in a want on, fraudulent , reckless, oppressive, or malevolent manner. Art . 2233. Exemplary damages cannot be recovered as a mat t er of right ; t he court will decide whet her or not t hey should be adjudicat ed. Art . 2234. While t he amount of t he exemplary damages need not be proved, t he plaint iff must show t hat he is ent it led t o moral, t emperat e or compensat ory damages before t he court may consider t he quest ion of whet her or not exemplary damages should be awarded. In case liquidat ed damages have been agreed upon, alt hough no proof of loss is necessary in order t hat such liquidat ed damages may be recovered, nevert heless, before t he court may consider t he quest ion of grant ing exemplary in addit ion t o t he liquidat ed damages, t he plaint iff must show t hat he would be ent it led t o moral, t emperat e or compensat ory damages were it not for t he st ipulat ion for liquidat ed damages. Art . 2235. A st ipulat ion whereby exemplary damages are renounced in advance shall be null and void. Tit le XIX. - CONCURRENCE AND PREFERENCE OF CREDITS CHAPTER 1 GENERAL PROVISIONS Art . 2236. The debt or is liable wit h all his propert y , present and fut ure, for t he fulfillment of his obligat ions, subject t o t he exempt ions provided by law. (1911a) Art . 2237 . Insolvency shall be governed by special laws insofar as t hey are not inconsist ent wit h t his Code. (n) Art . 2238. So long as t he conjugal part nership or absolut e communit y subsist s, it s propert y shall not be among t he asset s t o be t aken possession of by t he assignee for t he pay ment of t he insolvent debt or's obligat ions, except insofar as t he lat t er have redounded t o t he benefit of t he family . If it is t he husband who is insolvent , t he administ rat ion of t he conjugal part nership of absolut e communit y may , by order of t he court , be t ransferred t o t he wife or t o a t hird person ot her t han t he assignee. (n) Art . 2239. If t here is propert y , ot her t han t hat ment ioned in t he preceding art icle, owned by t wo or more persons, one of whom is t he insolvent debt or, his undivided share or int erest t herein shall be among t he asset s t o be t aken possession of by t he assignee for t he pay ment of t he insolvent debt or's obligat ions. (n) Art . 2240. Propert y held by t he insolvent debt or as a t rust ee of an express or implied t rust , shall be excluded from t he insolvency proceedings. (n) CHAPTER 2 CLASSIFICATION OF CREDITS
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Art . 2241. Wit h reference t o specific movable propert y of t he debt or, t he following claims or liens shall be preferred: (1) Dut ies, t axes and fees due t hereon t o t he St at e or any subdivision t hereof; (2) Claims arising from misappropriat ion, breach of t rust , or malfeasance by public officials commit t ed in t he performance of t heir dut ies, on t he movables, money or securit ies obt ained by t hem; (3) Claims for t he unpaid price of movables sold, on said movables, so long as t hey are in t he possession of t he debt or, up t o t he value of t he same; and if t he movable has been resold by t he debt or and t he price is st ill unpaid, t he lien may be enforced on t he price; t his right is not lost by t he immobilizat ion of t he t hing by dest inat ion, provided it has not lost it s form, subst ance and ident it y ; neit her is t he right lost by t he sale of t he t hing t oget her wit h ot her propert y for a lump sum, when t he price t hereof can be det ermined proport ionally ; (4) Credit s guarant eed wit h a pledge so long as t he t hings pledged are in t he hands of t he credit or, or t hose guarant eed by a chat t el mort gage, upon t he t hings pledged or mort gaged, up t o t he value t hereof; (5) Credit s for t he making, repair, safekeeping or preservat ion of personal propert y , on t he movable t hus made, repaired, kept or possessed; (6) Claims for laborers' wages, on t he goods manufact ured or t he work done; (7 ) For expenses of salvage, upon t he goods salvaged; (8) Credit s bet ween t he landlord and t he t enant , arising from t he cont ract of t enancy on shares, on t he share of each in t he fruit s or harvest ; (9) Credit s for t ransport at ion, upon t he goods carried, for t he price of t he cont ract and incident al expenses, unt il t heir delivery and for t hirt y day s t hereaft er; (10) Credit s for lodging and supplies usually furnished t o t ravellers by hot el keepers, on t he movables belonging t o t he guest as long as such movables are in t he hot el, but not for money loaned t o t he guest s; (11) Credit s for seeds and expenses for cult ivat ion and harvest advanced t o t he debt or, upon t he fruit s harvest ed; (12) Credit s for rent for one y ear, upon t he personal propert y of t he lessee exist ing on t he immovable leased and on t he fruit s of t he same, but not on money or inst rument s of credit ; (13) Claims in favor of t he deposit or if t he deposit ary has wrongfully sold t he t hing deposit ed, upon t he price of t he sale. In t he foregoing cases, if t he movables t o which t he lien or preference at t aches have been wrongfully t aken, t he credit or may demand t hem from any possessor, wit hin t hirt y day s from t he unlawful seizure. (1922a) Art . 2242. Wit h reference t o specific immovable propert y and real right s of t he debt or, t he following claims, mort gages and liens shall be preferred, and shall const it ut e an encumbrance on t he immovable or real right : (1) Taxes due upon t he land or building; (2) For t he unpaid price of real propert y sold, upon t he immovable sold; (3) Claims of laborers, masons, mechanics and ot her workmen, as well as of archit ect s, engineers and cont ract ors, engaged in t he const ruct ion, reconst ruct ion or repair of buildings, canals or ot her works, upon said buildings, canals or ot her works; (4) Claims of furnishers of mat erials used in t he const ruct ion, reconst ruct ion, or repair of buildings, canals or ot her works, upon said buildings, canals or ot her works; (5) Mort gage credit s recorded in t he Regist ry of Propert y , upon t he real est at e mort gaged; (6) Expenses for t he preservat ion or improvement of real propert y when t he law aut horizes reimbursement , upon t he immovable preserved or improved; (7 ) Credit s annot at ed in t he Regist ry of Propert y , in virt ue of a judicial order, by at t achment s or execut ions, upon t he propert y affect ed, and only as t o lat er credit s; (8) Claims of co-heirs for warrant y in t he part it ion of an immovable among t hem, upon t he real propert y t hus divided; (9) Claims of donors or real propert y for pecuniary charges or ot her condit ions imposed upon t he donee, upon t he immovable donat ed; (10) Credit s of insurers, upon t he propert y insured, for t he insurance premium for t wo y ears. (1923a)
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Art . 2243. The claims or credit s enumerat ed in t he t wo preceding art icles shall be considered as mort gages or pledges of real or personal propert y , or liens wit hin t he purview of legal provisions governing insolvency . Taxes ment ioned in No. 1, Art icle 2241, and No. 1, Art icle 2242, shall first be sat isfied. (n) Art . 2244. Wit h reference t o ot her propert y , real and personal, of t he debt or, t he following claims or credit s shall be preferred in t he order named: (1) Proper funeral expenses for t he debt or, or children under his or her parent al aut horit y who have no propert y of t heir own, when approved by t he court ; (2) Credit s for services rendered t he insolvent by employ ees, laborers, or household helpers for one y ear preceding t he commencement of t he proceedings in insolvency ; (3) Expenses during t he last illness of t he debt or or of his or her spouse and children under his or her parent al aut horit y , if t hey have no propert y of t heir own; (4) Compensat ion due t he laborers or t heir dependent s under laws providing for indemnit y for damages in cases of labor accident , or illness result ing from t he nat ure of t he employ ment ; (5) Credit s and advancement s made t o t he debt or for support of himself or herself, and family , during t he last y ear preceding t he insolvency ; (6) Support during t he insolvency proceedings, and for t hree mont hs t hereaft er; (7 ) Fines and civil indemnificat ion arising from a criminal offense; (8) Legal expenses, and expenses incurred in t he administ rat ion of t he insolvent 's est at e for t he common int erest of t he credit ors, when properly aut horized and approved by t he court ; (9) Taxes and assessment s due t he nat ional government , ot her t han t hose ment ioned in Art icles 2241, No. 1, and 2242, No. 1; (10) Taxes and assessment s due any province, ot her t han t hose referred t o in Art icles 2241, No. 1, and 2242, No. 1; (11) Taxes and assessment s due any cit y or municipalit y , ot her t han t hose indicat ed in Art icles 2241, No. 1, and 2242, No. 1; (12) Damages for deat h or personal injuries caused by a quasi-delict ; (13) Gift s due t o public and privat e inst it ut ions of charit y or beneficence; (14) Credit s which, wit hout special privilege, appear in (a) a public inst rument ; or (b) in a final judgment , if t hey have been t he subject of lit igat ion. These credit s shall have preference among t hemselves in t he order of priorit y of t he dat es of t he inst rument s and of t he judgment s, respect ively . (1924a) Art . 2245. Credit s of any ot her kind or class, or by any ot her right or t it le not comprised in t he four preceding art icles, shall enjoy no preference. (1925) CHAPTER 3 ORDER OF PREFERENCE OF CREDITS Art . 2246. Those credit s which enjoy preference wit h respect t o specific movables, exclude all ot hers t o t he ext ent of t he value of t he personal propert y t o which t he preference refers. Art . 2247 . If t here are t wo or more credit s wit h respect t o t he same specific movable propert y , t hey shall be sat isfied pro rat a, aft er t he pay ment of dut ies, t axes and fees due t he St at e or any subdivision t hereof. (1926a) Art . 2248. Those credit s which enjoy preference in relat ion t o specific real propert y or real right s, exclude all ot hers t o t he ext ent of t he value of t he immovable or real right t o which t he preference refers. Art . 2249. If t here are t wo or more credit s wit h respect t o t he same specific real propert y or real right s, t hey shall be sat isfied pro rat a, aft er t he pay ment of t he t axes and assessment s upon t he immovable propert y or real right . (1927 a) Art . 2250. The excess, if any , aft er t he pay ment of t he credit s which enjoy preference wit h respect t o specific propert y , real or personal, shall be added t o t he free propert y which t he debt or may have, for t he pay ment of t he ot her credit s. (1928a) Art . 2251. Those credit s which do not enjoy any preference wit h respect t o specific propert y , and t hose which enjoy preference, as t o t he amount not paid, shall be sat isfied according t o t he following rules: (1) In t he order est ablished in Art icle 2244; (2) Common credit s referred t o in Art icle 2245 shall be paid pro rat a regardless of dat es. (1929a)
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TRANSITIONAL PROVISIONS Art . 2252. Changes made and new provisions and rules laid down by t his Code which may prejudice or impair vest ed or acquired right s in accordance wit h t he old legislat ion shall have no ret roact ive effect . For t he det erminat ion of t he applicable law in cases which are not specified elsewhere in t his Code, t he following art icles shall be observed: (Pars. 1 and 2, Transit ional Provisions). Art . 2253. The Civil Code of 1889 and ot her previous laws shall govern right s originat ing, under said laws, from act s done or event s which t ook place under t heir regime, even t hough t his Code may regulat e t hem in a different manner, or may not recognize t hem. But if a right should be declared for t he first t ime in t his Code, it shall be effect ive at once, even t hough t he act or event which gives rise t heret o may have been done or may have occurred under prior legislat ion, provided said new right does not prejudice or impair any vest ed or acquired right , of t he same origin. (Rule 1) Art . 2254. No vest ed or acquired right can arise from act s or omissions which are against t he law or which infringe upon t he right s of ot hers. (n) Art . 2255. The former laws shall regulat e act s and cont ract s wit h a condit ion or period, which were execut ed or ent ered int o before t he effect ivit y of t his Code, even t hough t he condit ion or period may st ill be pending at t he t ime t his body of laws goes int o effect . (n) Art . 2256. Act s and cont ract s under t he regime of t he old laws, if t hey are valid in accordance t herewit h, shall cont inue t o be fully operat ive as provided in t he same, wit h t he limit at ions est ablished in t hese rules. But t he revocat ion or modificat ion of t hese act s and cont ract s aft er t he beginning of t he effect ivit y of t his Code, shall be subject t o t he provisions of t his new body of laws. (Rule 2a) Art . 2257 . Provisions of t his Code which at t ach a civil sanct ion or penalt y or a deprivat ion of right s t o act s or omissions which were not penalized by t he former laws, are not applicable t o t hose who, when said laws were in force, may have execut ed t he act or incurred in t he omission forbidden or condemned by t his Code. If t he fault is also punished by t he previous legislat ion, t he less severe sanct ion shall be applied. If a cont inuous or repeat ed act or omission was commenced before t he beginning of t he effect ivit y of t his Code, and t he same subsist s or is maint ained or repeat ed aft er t his body of laws has become operat ive, t he sanct ion or penalt y prescribed in t his Code shall be applied, even t hough t he previous laws may not have provided any sanct ion or penalt y t herefor. (Rule 3a) Art . 2258. Act ions and right s which came int o being but were not exercised before t he effect ivit y of t his Code, shall remain in full force in conformit y wit h t he old legislat ion; but t heir exercise, durat ion and t he procedure t o enforce t hem shall be regulat ed by t his Code and by t he Rules of Court . If t he exercise of t he right or of t he act ion was commenced under t he old laws, but is pending on t he dat e t his Code t akes effect , and t he procedure was different from t hat est ablished in t his new body of laws, t he part ies concerned may choose which met hod or course t o pursue. (Rule 4) Art . 2259. The capacit y of a married woman t o execut e act s and cont ract s is governed by t his Code, even if her marriage was celebrat ed under t he former laws. (n) Art . 2260. The volunt ary recognit ion of a nat ural child shall t ake place according t o t his Code, even if t he child was born before t he effect ivit y of t his body of laws. (n) Art . 2261. The exempt ion prescribed in Art icle 302 shall also be applicable t o any support , pension or grat uit y already exist ing or grant ed before t his Code becomes effect ive. (n) Art . 2262. Guardians of t he propert y of minors, appoint ed by t he court s before t his Code goes int o effect , shall cont inue t o act as such, not wit hst anding t he provisions of Art icle 320. (n) Art . 2263. Right s t o t he inherit ance of a person who died, wit h or wit hout a will, before t he effect ivit y of t his Code, shall be governed by t he Civil Code of 1889, by ot her previous laws, and by t he Rules of Court . The inherit ance of t hose who, wit h or wit hout a will, die aft er t he beginning of t he effect ivit y of t his Code, shall be adjudicat ed and dist ribut ed in accordance wit h t his new body of laws and by t he Rules of Court ; but t he t est ament ary provisions shall be carried out insofar as t hey may be permit t ed by t his Code. Therefore, legit imes, bet t erment s, legacies and bequest s shall be respect ed; however, t heir amount shall be reduced if in no ot her manner can every compulsory heir be given his full share according t o t his Code. (Rule 12a) Art . 2264. The st at us and right s of nat ural children by legal fict ion referred t o in art icle 89 and illegit imat e children ment ioned in Art icle 287 , shall also be acquired by children born before t he effect ivit y of t his Code. (n) Art . 2265. The right of ret ent ion of real or personal propert y arising aft er t his Code becomes effect ive, includes t hose t hings which came int o t he credit or's possession before said dat e. (n) Art . 2266. The following shall have not only prospect ive but also ret roact ive effect : (1) Art icle 315, whereby a descendant cannot be compelled, in a criminal case, t o t est ify against his parent s and
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ascendant s; (2) Art icles 101 and 88, providing against collusion in cases of legal separat ion and annulment of marriage; (3) Art icles 283, 284, and 289, concerning t he proof of illegit imat e filiat ion; (4) Art icle 838, aut horizing t he probat e of a will on pet it ion of t he t est at or himself; (5) Art icles 1359 t o 1369, relat ive t o t he reformat ion of inst rument s; (6) Art icles 47 6 t o 481, regulat ing act ions t o quiet t it le; (7 ) Art icles 2029 t o 2031, which are designed t o promot e compromise. (n) Art . 2267 . The following provisions shall apply not only t o fut ure cases but also t o t hose pending on t he dat e t his Code becomes effect ive: (1) Art icle 29, Relat ive t o criminal prosecut ions wherein t he accused is acquit t ed on t he ground t hat his guilt has not been proved bey ond reasonable doubt ; (2) Art icle 33, concerning cases of defamat ion, fraud, and phy sical injuries. (n) Art . 2268. Suit s bet ween members of t he same family which are pending at t he t ime t his Code goes int o effect shall be suspended, under such t erms as t he court may det ermine, in order t hat compromise may be earnest ly sought , or, in case of legal separat ion proceedings, for t he purpose of effect ing, if possible, a reconciliat ion. (n) Art . 2269. The principles upon which t he preceding t ransit ional provisions are based shall, by analogy , be applied t o cases not specifically regulat ed by t hem. (Rule 13a) REPEALING CLAUSE Art . 227 0. The following laws and regulat ions are hereby repealed: (1) Those part s and provisions of t he Civil Code of 1889 which are in force on t he dat e when t his new Civil Code becomes effect ive: (2) The provisions of t he Code of Commerce governing sales, part nership, agency , loan, deposit and guarant y ; (3) The provisions of t he Code of Civil Procedure on prescript ion as far as inconsist ent wit h t his Code; and (4) All laws, Act s, part s of Act s, rules of court , execut ive orders, and administ rat ive regulat ions which are inconsist ent wit h t his Code. (n) Approved, June 18, 1949.
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BOOK I Artic l es 37-413 BOOK II Artic l es 414-711 BOOK III Artic l es 712-1155 BOOK IV Artic l es 1156-2270 APPENDICES
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The Civil Code of the Philippines

BOOK II PROPERTY , OWNERSHIP, AND ITS MODIFICATIONS

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