REPUBLIC ACT NO.

386
AN ACT TO ORDAIN AND INSTITUTE
THE CIVIL CODE OF THE PHILIPPINES
PRELIMINARY TITLE
CHAPTER I
EFFECT AND APPLICATION OF LAWS

Article 1. This Act shall be known as the "Civil Code of the Philippines." (n)
Art. 2. Laws shall take effect after fifteen days followin the co!pletion of their p"blication in the
#fficial $a%ette& "nless it is otherwise provided. This Code shall take effect one year after s"ch
p"blication. (1a)
Art. '. (norance of the law e)c"ses no one fro! co!pliance therewith. (2)
Art. *. Laws shall have no retroactive effect& "nless the contrary is provided. (')
Art. +. Acts e)ec"ted aainst the provisions of !andatory or prohibitory laws shall be void& e)cept
when the law itself a"thori%es their validity. (*a)
Art. ,. -ihts !ay be waived& "nless the waiver is contrary to law& p"blic order& p"blic policy&
!orals& or ood c"sto!s& or pre."dicial to a third person with a riht reconi%ed by law. (*a)
Art. /. Laws are repealed only by s"bse0"ent ones& and their violation or non1observance shall not
be e)c"sed by dis"se& or c"sto! or practice to the contrary.
2hen the co"rts declared a law to be inconsistent with the Constit"tion& the for!er shall be void
and the latter shall overn.
Ad!inistrative or e)ec"tive acts& orders and re"lations shall be valid only when they are not
contrary to the laws or the Constit"tion. (+a)
Art. 3. 4"dicial decisions applyin or interpretin the laws or the Constit"tion shall for! a part of
the leal syste! of the Philippines. (n)
Art. 5. 6o ."de or co"rt shall decline to render ."d!ent by reason of the silence& obsc"rity or
ins"fficiency of the laws. (,)
Art. 17. (n case of do"bt in the interpretation or application of laws& it is pres"!ed that the
law!akin body intended riht and ."stice to prevail. (n)
Art. 11. C"sto!s which are contrary to law& p"blic order or p"blic policy shall not be
co"ntenanced. (n)
Art. 12. A c"sto! !"st be proved as a fact& accordin to the r"les of evidence. (n)
Art. 1'. 2hen the laws speak of years& !onths& days or nihts& it shall be "nderstood that years are
of three h"ndred si)ty1five days each8 !onths& of thirty days8 days& of twenty1fo"r ho"rs8 and
nihts fro! s"nset to s"nrise.
(f !onths are desinated by their na!e& they shall be co!p"ted by the n"!ber of days which they
respectively have.
(n co!p"tin a period& the first day shall be e)cl"ded& and the last day incl"ded. (/a)
Art. 1*. Penal laws and those of p"blic sec"rity and safety shall be obliatory "pon all who live or
so.o"rn in the Philippine territory& s"b.ect to the principles of p"blic international law and to treaty
stip"lations. (3a)
Art. 1+. Laws relatin to fa!ily rihts and d"ties& or to the stat"s& condition and leal capacity of
persons are bindin "pon citi%ens of the Philippines& even tho"h livin abroad. (5a)
Art. 1,. -eal property as well as personal property is s"b.ect to the law of the co"ntry where it is
stip"lated.
9owever& intestate and testa!entary s"ccessions& both with respect to the order of s"ccession and
to the a!o"nt of s"ccessional rihts and to the intrinsic validity of testa!entary provisions& shall be
re"lated by the national law of the person whose s"ccession is "nder consideration& whatever !ay
be the nat"re of the property and reardless of the co"ntry wherein said property !ay be fo"nd.
(17a)
Art. 1/. The for!s and sole!nities of contracts& wills& and other p"blic instr"!ents shall be
overned by the laws of the co"ntry in which they are e)ec"ted.
2hen the acts referred to are e)ec"ted before the diplo!atic or cons"lar officials of the -ep"blic
of the Philippines in a forein co"ntry& the sole!nities established by Philippine laws shall be
observed in their e)ec"tion.
Prohibitive laws concernin persons& their acts or property& and those which have& for their ob.ect&
p"blic order& p"blic policy and ood c"sto!s shall not be rendered ineffective by laws or
."d!ents pro!"lated& or by deter!inations or conventions areed "pon in a forein co"ntry.
(11a)
Art. 13. (n !atters which are overned by the Code of Co!!erce and special laws& their
deficiency shall be s"pplied by the provisions of this Code. (1,a)

CHAPTER 2
HUMAN RELATIONS (n)

Art. 15. :very person !"st& in the e)ercise of his rihts and in the perfor!ance of his d"ties& act
with ."stice& ive everyone his d"e& and observe honesty and ood faith.
Art. 27. :very person who& contrary to law& wilf"lly or neliently ca"ses da!ae to another& shall
inde!nify the latter for the sa!e.
Art. 21. Any person who wilf"lly ca"ses loss or in."ry to another in a !anner that is contrary to
!orals& ood c"sto!s or p"blic policy shall co!pensate the latter for the da!ae.
Art. 22. :very person who thro"h an act of perfor!ance by another& or any other !eans& ac0"ires
or co!es into possession of so!ethin at the e)pense of the latter witho"t ."st or leal ro"nd&
shall ret"rn the sa!e to hi!.
Art. 2'. :ven when an act or event ca"sin da!ae to another;s property was not d"e to the fa"lt or
nelience of the defendant& the latter shall be liable for inde!nity if thro"h the act or event he
was benefited.
Art. 2*. (n all contract"al& property or other relations& when one of the parties is at a disadvantae
on acco"nt of his !oral dependence& inorance& indience& !ental weakness& tender ae or other
handicap& the co"rts !"st be viilant for his protection.
Art. 2+. Tho"htless e)travaance in e)penses for pleas"re or display d"rin a period of ac"te
p"blic want or e!erency !ay be stopped by order of the co"rts at the instance of any overn!ent
or private charitable instit"tion.
Art. 2,. :very person shall respect the dinity& personality& privacy and peace of !ind of his
neihbors and other persons. The followin and si!ilar acts& tho"h they !ay not constit"te a
cri!inal offense& shall prod"ce a ca"se of action for da!aes& prevention and other relief<
(1) Pryin into the privacy of another;s residence<
(2) =eddlin with or dist"rbin the private life or fa!ily relations of another8
(') (ntri"in to ca"se another to be alienated fro! his friends8
(*) >e)in or h"!iliatin another on acco"nt of his reliio"s beliefs& lowly station in life& place of
birth& physical defect& or other personal condition.
Art. 2/. Any person s"fferin !aterial or !oral loss beca"se a p"blic servant or e!ployee ref"ses
or nelects& witho"t ."st ca"se& to perfor! his official d"ty !ay file an action for da!aes and
other relief aainst he latter& witho"t pre."dice to any disciplinary ad!inistrative action that !ay be
taken.
Art. 23. ?nfair co!petition in aric"lt"ral& co!!ercial or ind"strial enterprises or in labor thro"h
the "se of force& inti!idation& deceit& !achination or any other "n."st& oppressive or hihhanded
!ethod shall ive rise to a riht of action by the person who thereby s"ffers da!ae.
Art. 25. 2hen the acc"sed in a cri!inal prosec"tion is ac0"itted on the ro"nd that his "ilt has not
been proved beyond reasonable do"bt& a civil action for da!aes for the sa!e act or o!ission !ay
be instit"ted. @"ch action re0"ires only a preponderance of evidence. ?pon !otion of the
defendant& the co"rt !ay re0"ire the plaintiff to file a bond to answer for da!aes in case the
co!plaint sho"ld be fo"nd to be !alicio"s.
(f in a cri!inal case the ."d!ent of ac0"ittal is based "pon reasonable do"bt& the co"rt shall so
declare. (n the absence of any declaration to that effect& it !ay be inferred fro! the te)t of the
decision whether or not the ac0"ittal is d"e to that ro"nd.
Art. '7. 2hen a separate civil action is bro"ht to de!and civil liability arisin fro! a cri!inal
offense& and no cri!inal proceedins are instit"ted d"rin the pendency of the civil case& a
preponderance of evidence shall likewise be s"fficient to prove the act co!plained of.
Art. '1. 2hen the civil action is based on an obliation not arisin fro! the act or o!ission
co!plained of as a felony& s"ch civil action !ay proceed independently of the cri!inal proceedins
and reardless of the res"lt of the latter.
Art. '2. Any p"blic officer or e!ployee& or any private individ"al& who directly or indirectly
obstr"cts& defeats& violates or in any !anner i!pedes or i!pairs any of the followin rihts and
liberties of another person shall be liable to the latter for da!aes<
(1) Areedo! of reliion8
(2) Areedo! of speech8
(') Areedo! to write for the press or to !aintain a periodical p"blication8
(*) Areedo! fro! arbitrary or illeal detention8
(+) Areedo! of s"ffrae8
(,) The riht aainst deprivation of property witho"t d"e process of law8
(/) The riht to a ."st co!pensation when private property is taken for p"blic "se8
(3) The riht to the e0"al protection of the laws8
(5) The riht to be sec"re in one;s person& ho"se& papers& and effects aainst "nreasonable searches
and sei%"res8
(17) The liberty of abode and of chanin the sa!e8
(11) The privacy of co!!"nication and correspondence8
(12) The riht to beco!e a !e!ber of associations or societies for p"rposes not contrary to law8
(1') The riht to take part in a peaceable asse!bly to petition the overn!ent for redress of
rievances8
(1*) The riht to be free fro! invol"ntary servit"de in any for!8
(1+) The riht of the acc"sed aainst e)cessive bail8
(1,) The riht of the acc"sed to be heard by hi!self and co"nsel& to be infor!ed of the nat"re and
ca"se of the acc"sation aainst hi!& to have a speedy and p"blic trial& to !eet the witnesses face to
face& and to have co!p"lsory process to sec"re the attendance of witness in his behalf8
(1/) Areedo! fro! bein co!pelled to be a witness aainst one;s self& or fro! bein forced to
confess "ilt& or fro! bein ind"ced by a pro!ise of i!!"nity or reward to !ake s"ch confession&
e)cept when the person confessin beco!es a @tate witness8
(13) Areedo! fro! e)cessive fines& or cr"el and "n"s"al p"nish!ent& "nless the sa!e is i!posed
or inflicted in accordance with a stat"te which has not been ."dicially declared "nconstit"tional8
and
(15) Areedo! of access to the co"rts.
(n any of the cases referred to in this article& whether or not the defendant;s act or o!ission
constit"tes a cri!inal offense& the arieved party has a riht to co!!ence an entirely separate and
distinct civil action for da!aes& and for other relief. @"ch civil action shall proceed independently
of any cri!inal prosec"tion (if the latter be instit"ted)& and !at be proved by a preponderance of
evidence.
The inde!nity shall incl"de !oral da!aes. :)e!plary da!aes !ay also be ad."dicated.
The responsibility herein set forth is not de!andable fro! a ."de "nless his act or o!ission
constit"tes a violation of the Penal Code or other penal stat"te.
Art. ''. (n cases of defa!ation& fra"d& and physical in."ries a civil action for da!aes& entirely
separate and distinct fro! the cri!inal action& !ay be bro"ht by the in."red party. @"ch civil
action shall proceed independently of the cri!inal prosec"tion& and shall re0"ire only a
preponderance of evidence.
Art. '*. 2hen a !e!ber of a city or !"nicipal police force ref"ses or fails to render aid or
protection to any person in case of daner to life or property& s"ch peace officer shall be pri!arily
liable for da!aes& and the city or !"nicipality shall be s"bsidiarily responsible therefor. The civil
action herein reconi%ed shall be independent of any cri!inal proceedins& and a preponderance of
evidence shall s"ffice to s"pport s"ch action.
Art. '+. 2hen a person& clai!in to be in."red by a cri!inal offense& chares another with the
sa!e& for which no independent civil action is ranted in this Code or any special law& b"t the
."stice of the peace finds no reasonable ro"nds to believe that a cri!e has been co!!itted& or the
prosec"tin attorney ref"ses or fails to instit"te cri!inal proceedins& the co!plaint !ay brin a
civil action for da!aes aainst the alleed offender. @"ch civil action !ay be s"pported by a
preponderance of evidence. ?pon the defendant;s !otion& the co"rt !ay re0"ire the plaintiff to file
a bond to inde!nify the defendant in case the co!plaint sho"ld be fo"nd to be !alicio"s.
(f d"rin the pendency of the civil action& an infor!ation sho"ld be presented by the prosec"tin
attorney& the civil action shall be s"spended "ntil the ter!ination of the cri!inal proceedins.
Art. ',. Pre1."dicial 0"estions which !"st be decided before any cri!inal prosec"tion !ay be
instit"ted or !ay proceed& shall be overned by r"les of co"rt which the @"pre!e Co"rt shall
pro!"late and which shall not be in conflict with the provisions of this Code.
REPUBLIC ACT NO. 386
AN ACT TO ORDAIN AND INSTITUTE
THE CIVIL CODE OF THE PHILIPPINES
BOOK I
PERSONS
Ti!" I. # CIVIL PERSONALITY
CHAPTER $
%ENERAL PROVISIONS

Art. '/. 4"ridical capacity& which is the fitness to be the s"b.ect of leal relations& is inherent in
every nat"ral person and is lost only thro"h death. Capacity to act& which is the power to do acts
with leal effect& is ac0"ired and !ay be lost. (n)
Art. '3. =inority& insanity or i!becility& the state of bein a deaf1!"te& prodiality and civil
interdiction are !ere restrictions on capacity to act& and do not e)e!pt the incapacitated person
fro! certain obliations& as when the latter arise fro! his acts or fro! property relations& s"ch as
ease!ents. ('2a)
Art. '5. The followin circ"!stances& a!on others& !odify or li!it capacity to act< ae& insanity&
i!becility& the state of bein a deaf1!"te& penalty& prodiality& fa!ily relations& alienae& absence&
insolvency and tr"steeship. The conse0"ences of these circ"!stances are overned in this Code&
other codes& the -"les of Co"rt& and in special laws. Capacity to act is not li!ited on acco"nt of
reliio"s belief or political opinion.
A !arried wo!an& twenty1one years of ae or over& is 0"alified for all acts of civil life& e)cept in
cases specified by law. (n)

CHAPTER 2
NATURAL PERSONS

Art. *7. Birth deter!ines personality8 b"t the conceived child shall be considered born for all
p"rposes that are favorable to it& provided it be born later with the conditions specified in the
followin article. (25a)
Art. *1. Aor civil p"rposes& the fet"s is considered born if it is alive at the ti!e it is co!pletely
delivered fro! the !other;s wo!b. 9owever& if the fet"s had an intra1"terine life of less than seven
!onths& it is not dee!ed born if it dies within twenty1fo"r ho"rs after its co!plete delivery fro!
the !aternal wo!b. ('7a)
Art. *2. Civil personality is e)tin"ished by death.
The effect of death "pon the rihts and obliations of the deceased is deter!ined by law& by
contract and by will. ('2a)
Art. *'. (f there is a do"bt& as between two or !ore persons who are called to s"cceed each other&
as to which of the! died first& whoever allees the death of one prior to the other& shall prove the
sa!e8 in the absence of proof& it is pres"!ed that they died at the sa!e ti!e and there shall be no
trans!ission of rihts fro! one to the other. ('')

CHAPTER 3
&URIDICAL PERSONS

Art. **. The followin are ."ridical persons<
(1) The @tate and its political s"bdivisions8
(2) #ther corporations& instit"tions and entities for p"blic interest or p"rpose& created by law8 their
personality beins as soon as they have been constit"ted accordin to law8
(') Corporations& partnerships and associations for private interest or p"rpose to which the law
rants a ."ridical personality& separate and distinct fro! that of each shareholder& partner or
!e!ber. ('+a)
Art. *+. 4"ridical persons !entioned in 6os. 1 and 2 of the precedin article are overned by the
laws creatin or reconi%in the!.
Private corporations are re"lated by laws of eneral application on the s"b.ect.
Partnerships and associations for private interest or p"rpose are overned by the provisions of this
Code concernin partnerships. (', and '/a)
Art. *,. 4"ridical persons !ay ac0"ire and possess property of all kinds& as well as inc"r
obliations and brin civil or cri!inal actions& in confor!ity with the laws and re"lations of their
orani%ation. ('3a)
Art. */. ?pon the dissol"tion of corporations& instit"tions and other entities for p"blic interest or
p"rpose !entioned in 6o. 2 of Article **& their property and other assets shall be disposed of in
p"rs"ance of law or the charter creatin the!. (f nothin has been specified on this point& the
property and other assets shall be applied to si!ilar p"rposes for the benefit of the reion& province&
city or !"nicipality which d"rin the e)istence of the instit"tion derived the principal benefits fro!
the sa!e. ('5a)

Title ((. 1 C(T(C:6@9(P A6D D#=(C(L:

Art. *3. The followin are citi%ens of the Philippines<
(1) Those who were citi%ens of the Philippines at the ti!e of the adoption of the Constit"tion of the
Philippines8
(2) Those born in the Philippines of forein parents who& before the adoption of said Constit"tion&
had been elected to p"blic office in the Philippines8
(') Those whose fathers are citi%ens of the Philippines8
(*) Those whose !others are citi%ens of the Philippines and& "pon reachin the ae of !a.ority&
elect Philippine citi%enship8
(+) Those who are nat"rali%ed in accordance with law. (n)
Art. *5. 6at"rali%ation and the loss and reac0"isition of citi%enship of the Philippines are overned
by special laws. (n)
Art. +7. Aor the e)ercise of civil rihts and the f"lfill!ent of civil obliations& the do!icile of
nat"ral persons is the place of their habit"al residence. (*7a)
Art. +1. 2hen the law creatin or reconi%in the!& or any other provision does not fi) the
do!icile of ."ridical persons& the sa!e shall be "nderstood to be the place where their leal
representation is established or where they e)ercise their principal f"nctions. (*1a)

Title E. 1 A?6:-AL@ (n)

Art. '7+. The d"ty and the riht to !ake arrane!ents for the f"neral of a relative shall be in
accordance with the order established for s"pport& "nder Article 25*. (n case of descendants of the
sa!e deree& or of brothers and sisters& the oldest shall be preferred. (n case of ascendants& the
paternal shall have a better riht.
Art. '7,. :very f"neral shall be in keepin with the social position of the deceased.
Art. '7/. The f"neral shall be in accordance with the e)pressed wishes of the deceased. (n the
absence of s"ch e)pression& his reliio"s beliefs or affiliation shall deter!ine the f"neral rites. (n
case of do"bt& the for! of the f"neral shall be decided "pon by the person oblied to !ake
arrane!ents for the sa!e& after cons"ltin the other !e!bers of the fa!ily.
Art. '73. 6o h"!an re!ains shall be retained& interred& disposed of or e)h"!ed witho"t the
consent of the persons !entioned in articles 25* and '7+.
Art. '75. Any person who shows disrespect to the dead& or wronf"lly interferes with a f"neral
shall be liable to the fa!ily of the deceased for da!aes& !aterial and !oral.
Art. '17. The constr"ction of a to!bstone or !a"sole"! shall be dee!ed a part of the f"neral
e)penses& and shall be chareable to the con."al partnership property& if the deceased is one of the
spo"ses.

Title E(. 1 PA-:6TAL A?T9#-(TF

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Art. '11. The father and !other .ointly e)ercise parental a"thority over their leiti!ate children
who are not e!ancipated. (n case of disaree!ent& the father;s decision shall prevail& "nless there is
a ."dicial order to the contrary.
Children are oblied to obey their parents so lon as they are "nder parental power& and to observe
respect and reverence toward the! always.
-econi%ed nat"ral and adopted children who are "nder the ae of !a.ority are "nder the parental
a"thority of the father or !other reconi%in or adoptin the!& and are "nder the sa!e obliation
stated in the precedin pararaph.
6at"ral children by leal fiction are "nder the .oint a"thority of the father and !other& as provided
in the first pararaph of this article. (1+*a)
Art. '12. $randparents shall be cons"lted by all !e!bers of the fa!ily on all i!portant fa!ily
0"estions. (n)
Art. '1'. Parental a"thority cannot be reno"nced or transferred& e)cept in cases of "ardianship or
adoption approved by the co"rts& or e!ancipation by concession.
The co"rts !ay& in cases specified by law& deprive parents of their a"thority. (n)
Art. '1*. A fo"ndlin shall be "nder the parental a"thority of the person or instit"tion that has
reared the sa!e. (n)
Art. '1+. 6o descendant can be co!pelled& in a cri!inal case& to testify aainst his parents and
ascendants. (n)

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Art. '1,. The father and the !other have& with respect to their "ne!ancipated children<
(1) The d"ty to s"pport the!& to have the! in their co!pany& ed"cate and instr"ct the! in keepin
with their !eans and to represent the! in all actions which !ay redo"nd to their benefit8
(2) The power to correct the! and to p"nish the! !oderately. (1++)
Art. '1/. The co"rts !ay appoint a "ardian of the child; s property& or a "ardian ad lite! when
the best interest of the child so re0"ires. (n)
Art. '13. ?pon ca"se bein shown by the parents& the local !ayor !ay aid the! in the e)ercise of
their a"thority over the child. (f the child is to be kept in a children;s ho!e or si!ilar instit"tion for
not !ore than one !onth& an order of the ."stice of the peace or !"nicipal ."de shall be necessary&
after d"e hearin& where the child shall be heard. Aor his p"rpose& the co"rt !ay appoint a "ardian
ad lite!. (1+,a)
Art. '15. The father and the !other shall satisfy the s"pport for the detained child8 b"t they shall
not have any intervention in the rei!e of the instit"tion where the child is detained. They !ay lift
the detention when they dee! it opport"ne& with the approval of the co"rt. (1+3a)

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Art. '27. The father& or in his absence the !other& is the leal ad!inistrator of the property
pertainin to the child "nder parental a"thority. (f the property is worth !ore than two tho"sand
pesos& the father or !other shall ive a bond s"b.ect to the approval of the Co"rt of Airst (nstance.
(1+5a)
Art. '21. The property which the "ne!ancipated child has ac0"ired or !ay ac0"ire with his work
or ind"stry& or by any l"crative title& belons to the child in ownership& and in "s"fr"ct to the father
or !other "nder who! he is "nder parental a"thority and in whose co!pany he lives8 b"t if the
child& with the parent;s consent& sho"ld live independently fro! the!& he shall be considered as
e!ancipated for all p"rposes relative to said property& and he shall have over it do!inion& "s"fr"ct
and ad!inistration. (1,7)
Art. '22. A child who earns !oney or ac0"ires property with his own work or ind"stry shall be
entitled to a reasonable allowance fro! the earnins& in addition to the e)penses !ade by the
parents for his s"pport and ed"cation. (n)
Art. '2'. The fr"its and interest of the child;s property referred to in article '21 shall be applied
first to the e)penses for the s"pport and ed"cation of the child. After they have been f"lly !et& the
debts of the con."al partnership which have redo"nded to the benefit of the fa!ily !ay be paid
fro! said fr"its and interest. (n)
Art. '2*. 2hatever the child !ay ac0"ire with the capital or property of the parents belons to the
latter in ownership and in "s"fr"ct. B"t if the parents sho"ld e)pressly rant hi! all or part of the
profits that he !ay obtain& s"ch profits shall not be chared aainst his leiti!e. (1,1)
Art. '2+. The property or inco!e donated& be0"eathed or devised to the "ne!ancipated child for
the e)penses of his ed"cation and instr"ction shall pertain to hi! in ownership and "s"fr"ct8 b"t the
father or !other shall ad!inister the sa!e& if in the donation or testa!entary provision the contrary
has not been stated. (1,2)
Art. '2,. 2hen the property of the child is worth !ore than two tho"sand pesos& the father or
!other shall be considered a "ardian of the child;s property& s"b.ect to the d"ties and obliations
of "ardians "nder the -"les of Co"rt. (n)

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Art. '2/. Parental a"thority ter!inates<
(1) ?pon the death of the parents or of the child8
(2) ?pon e!ancipation8
(') ?pon adoption of the child8
(*) ?pon the appoint!ent of a eneral "ardian. (1,/a)
Art. '23. The !other who contracts a s"bse0"ent !arriae loses the parental a"thority over her
children& "nless the deceased h"sband& father of the latter& has e)pressly provided in his will that
his widow !iht !arry aain& and has ordered that in s"ch case she sho"ld keep and e)ercise
parental a"thority over their children.
The co"rt !ay also appoint a "ardian of the child;s property in case the father sho"ld contract a
s"bse0"ent !arriae. (1,3a)
Art. '25. 2hen the !other of an illeiti!ate child !arries a !an other than its father& the co"rt
!ay appoint a "ardian for the child. (n)
Art. ''7. The father and in a proper case the !other& shall lose a"thority over their children<
(1) 2hen by final ."d!ent in a cri!inal case the penalty of deprivation of said a"thority is
i!posed "pon hi! or her8
(2) 2hen by a final ."d!ent in leal separation proceedins s"ch loss of a"thority is declared.
(1,5a)
Art. ''1. Parental a"thority is s"spended by the incapacity or absence of the father& or in a proper
case of the !other& ."dicially declared& and also by civil interdiction. (1/7)
Art. ''2. The co"rts !ay deprive the parents of their a"thority or s"spend the e)ercise of the sa!e
if they sho"ld treat their children with e)cessive harshness or sho"ld ive the! corr"ptin orders&
co"nsels& or e)a!ples& or sho"ld !ake the! be or abandon the!. (n these cases& the co"rts !ay
also deprive the parents in whole or in part& of the "s"fr"ct over the child;s property& or adopt s"ch
!eas"res as they !ay dee! advisable in the interest of the child. (1/1a)
Art. '''. (f the widowed !other who has contracted a s"bse0"ent !arriae sho"ld aain beco!e a
widow& she shall recover fro! this !o!ent her parental a"thority over all her "ne!ancipated
children. (1/2)

C9APT:- +
AD#PT(#6

Art. ''*. :very person of ae& who is in f"ll possession of his civil rihts& !ay adopt. (1/'a)
Art. ''+. The followin cannot adopt<
(1) Those who have leiti!ate& leiti!ated& acknowleded nat"ral children& or nat"ral children by
leal fiction8
(2) The "ardian& with respect to the ward& before the final approval of his acco"nts8
(') A !arried person& witho"t the consent of the other spo"se8
(*) 6on1resident aliens8
(+) -esident aliens with whose overn!ent the -ep"blic of the Philippines has broken diplo!atic
relations8
(,) Any person who has been convicted of a cri!e involvin !oral t"rpit"de& when the penalty
i!posed was si) !onths; i!prison!ent or !ore. (1/*a)
Art. '',. The h"sband and wife !ay .ointly adopt. Parental a"thority shall& in s"ch case& be
e)ercised as if the child were their own by nat"re. (n)
Art. ''/. Any person& even if of ae& !ay be adopted& provided the adopter is si)teen years older.
(1/'a)
Art. ''3. The followin !ay be adopted<
(1) The nat"ral child& by the nat"ral father or !other8
(2) #ther illeiti!ate children& by the father or !other8
(') A step1child& by the step1father or step1!other. (n)
Art. ''5. The followin cannot be adopted<
(1) A !arried person& witho"t the written consent of the other spo"se8
(2) An alien with whose overn!ent the -ep"blic of the Philippines has broken diplo!atic
relations8
(') A person who has already been adopted. (n)
Art. '*7. The written consent of the followin to the adoption shall be necessary<
(1) The person to be adopted& if fo"rteen years of ae or over8
(2) The parents& "ardian or person in chare of the person to be adopted. (n)
Art. '*1. The adoption shall<
(1) $ive to the adopted person the sa!e rihts and d"ties as if he were a leiti!ate child of the
adopter<
(2) Dissolve the a"thority vested in the parents by nat"re8
(') =ake the adopted person a leal heir of the adopter8
(*) :ntitle the adopted person to "se the adopter;s s"rna!e. (n)
Art. '*2. The adopter shall not be a leal heir of the adopted person& whose parents by nat"re shall
inherit fro! hi!. (1//a)
Art. '*'. (f the adopter is s"rvived by leiti!ate parents or ascendants and by an adopted person&
the latter shall not have !ore s"ccessional rihts than an acknowleded nat"ral child. (n)
Art. '**. The adopter !ay donate property& by an act inter vivos or by will& to the adopted person&
who shall ac0"ire ownership thereof. (n)
Art. '*+. The proceedins for adoption shall be overned by the -"les of Co"rt insofar as they are
not in conflict with this Code. (n)
Art. '*,. The adoption shall be recorded in the local civil reister. (1/5a)
Art. '*/. A !inor or other incapacitated person !ay& thro"h a "ardian ad lite!& ask for the
rescission of the adoption on the sa!e ro"nds that ca"se the loss of parental a"thority. (n)
Art. '*3. The adopter !ay petition the co"rt for revocation of the adoption in any of these cases<
(1) (f the adopted person has atte!pted aainst the life of the adopter8
(2) 2hen the adopted !inor has abandoned the ho!e of the adopter for !ore than three years8
(') 2hen by other acts the adopted person has definitely rep"diated the adoption. (n)
C9APT:- ,
@?B@T(T?T: PA-:6TAL A?T9#-(TF (n)

Art. '*5. The followin persons shall e)ercise s"bstit"te parental a"thority<
(1) $"ardians8
(2) Teachers and professors8
(') 9eads of children;s ho!es& orphanaes& and si!ilar instit"tions8
(*) Directors of trade establish!ents& with reard to apprentices8
(+) $randparents8
(,) The oldest brother or sister.
Art. '+7. The persons na!ed in the precedin article shall e)ercise reasonable s"pervision over the
cond"ct of the child.
Art. '+1. A eneral "ardian or a "ardian over the person shall have the sa!e a"thority over the
ward;s person as the parents. 2ith reard to the child;s property& the -"les of Co"rt on "ardianship
shall overn.
Art. '+2. The relations between teacher and p"pil& professor and st"dent& are fi)ed by overn!ent
re"lations and those of each school or instit"tion. (n no case shall corporal p"nish!ent be
co"ntenanced. The teacher or professor shall c"ltivate the best potentialities of the heart and !ind
of the p"pil or st"dent.
Art. '+'. Apprentices shall be treated h"!anely. 6o corporal p"nish!ent aainst the apprentice
shall be per!itted.
Art. '+*. $randparents and in their defa"lt the oldest brother or sister shall e)ercise parental
a"thority in case of death or absence of the child;s parents. (f the parents are livin& or if the child is
"nder "ardianship& the randparents !ay ive advice and co"nsel to the child& to the parents or to
the "ardian.
Art. '++. @"bstit"te parental a"thority shall be e)ercised by the randparents in the followin
order<
(1) Paternal randparents8
(2) =aternal randparents.
Title E((. 1 CA-: A6D :D?CAT(#6 #A C9(LD-:6

Art. '+,. :very child<
(1) (s entitled to parental care8
(2) @hall receive at least ele!entary ed"cation8
(') @hall be iven !oral and civic trainin by the parents or "ardian8
(*) 9as a riht to live in an at!osphere cond"cive to his physical& !oral and intellect"al
develop!ent.
Art. '+/. :very child shall<
(1) #bey and honor his parents or "ardian8
(2) -espect his randparents& old relatives& and persons holdin s"bstit"te parental a"thority8
(') :)ert his "t!ost for his ed"cation and trainin8
(*) Cooperate with the fa!ily in all !atters that !ake for the ood of the sa!e.
Art. '+3. :very parent and every person holdin s"bstit"te parental a"thority shall see to it that the
rihts of the child are respected and his d"ties co!plied with& and shall partic"larly& by precept and
e)a!ple& i!b"e the child with hih!indedness& love of co"ntry& veneration for the national heroes&
fidelity to de!ocracy as a way of life& and attach!ent to the ideal of per!anent world peace.
Art. '+5. The overn!ent pro!otes the f"ll rowth of the fac"lties of every child. Aor this p"rpose&
the overn!ent will establish& whenever possible<
(1) @chools in every barrio& !"nicipality and city where optional reliio"s instr"ction shall be
ta"ht as part of the c"rric"l"! at the option of the parent or "ardian8
(2) P"eric"lt"re and si!ilar centers8
(') Co"ncils for the Protection of Children8 and
(*) 4"venile co"rts.
Art. ',7. The Co"ncil for the Protection of Children shall look after the welfare of children in the
!"nicipality. (t shall& a!on other f"nctions<
(1) Aoster the ed"cation of every child in the !"nicipality8
(2) :nco"rae the c"ltivation of the d"ties of parents8
(') Protect and assist abandoned or !istreated children& and orphans8
(*) Take steps to prevent ."venile delin0"ency8
(+) Adopt !eas"res for the health of children8
(,) Pro!ote the openin and !aintenance of playro"nds8
(/) Coordinate the activities of orani%ations devoted to the welfare of children& and sec"re their
cooperation.
Art. ',1. 4"venile co"rts will be established& as far as practicable& in every chartered city or lare
!"nicipality.
Art. ',2. 2henever a child is fo"nd delin0"ent by any co"rt& the father& !other& or "ardian !ay in
a proper case be ."dicially ad!onished.
Art. ','. (n all 0"estions on the care& c"stody& ed"cation and property of children the latter;s
welfare shall be para!o"nt. 6o !other shall be separated fro! her child "nder seven years of ae&
"nless the co"rt finds co!pellin reasons for s"ch !eas"re.

Title E(((. 1 ?@: #A @?-6A=:@ (n)

Art. ',*. Leiti!ate and leiti!ated children shall principally "se the s"rna!e of the father.
Art. ',+. An adopted child shall bear the s"rna!e of the adopter.
Art. ',,. A nat"ral child acknowleded by both parents shall principally "se the s"rna!e of the
father. (f reconi%ed by only one of the parents& a nat"ral child shall e!ploy the s"rna!e of the
reconi%in parent.
Art. ',/. 6at"ral children by leal fiction shall principally e!ploy the s"rna!e of the father.
Art. ',3. (lleiti!ate children referred to in Article 23/ shall bear the s"rna!e of the !other.
Art. ',5. Children conceived before the decree ann"llin a voidable !arriae shall principally "se
the s"rna!e of the father.
Art. '/7. A !arried wo!an !ay "se<
(1) 9er !aiden first na!e and s"rna!e and add her h"sband;s s"rna!e& or
(2) 9er !aiden first na!e and her h"sband;s s"rna!e or
(') 9er h"sband;s f"ll na!e& b"t prefi)in a word indicatin that she is his wife& s"ch as "=rs."
Art. '/1. (n case of ann"l!ent of !arriae& and the wife is the "ilty party& she shall res"!e her
!aiden na!e and s"rna!e. (f she is the innocent spo"se& she !ay res"!e her !aiden na!e and
s"rna!e. 9owever& she !ay choose to contin"e e!ployin her for!er h"sband;s s"rna!e& "nless<
(1) The co"rt decrees otherwise& or
(2) @he or the for!er h"sband is !arried aain to another person.
Art. '/2. 2hen leal separation has been ranted& the wife shall contin"e "sin her na!e and
s"rna!e e!ployed before the leal separation.
Art. '/'. A widow !ay "se the deceased h"sband;s s"rna!e as tho"h he were still livin& in
accordance with Article '/7.
Art. '/*. (n case of identity of na!es and s"rna!es& the yo"ner person shall be oblied to "se
s"ch additional na!e or s"rna!e as will avoid conf"sion.
Art. '/+. (n case of identity of na!es and s"rna!es between ascendants and descendants& the word
"4"nior" can be "sed only by a son. $randsons and other direct !ale descendants shall either<
(1) Add a !iddle na!e or the !other;s s"rna!e& or
(2) Add the -o!an 6"!erals ((& (((& and so on.
Art. '/,. 6o person can chane his na!e or s"rna!e witho"t ."dicial a"thority.
Art. '//. ?s"rpation of a na!e and s"rna!e !ay be the s"b.ect of an action for da!aes and other
relief.
Art. '/3. The "na"thori%ed or "nlawf"l "se of another person;s s"rna!e ives a riht of action to
the latter.
Art. '/5. The e!ploy!ent of pen na!es or stae na!es is per!itted& provided it is done in ood
faith and there is no in."ry to third persons. Pen na!es and stae na!es cannot be "s"rped.
Art. '37. :)cept as provided in the precedin article& no person shall "se different na!es and
s"rna!es.

Title E(>. 1 AB@:6C:

C9APT:- 1
P-#>(@(#6AL =:A@?-:@ (6 CA@: #A AB@:6C:

Art. '31. 2hen a person disappears fro! his do!icile& his whereabo"ts bein "nknown& and
witho"t leavin an aent to ad!inister his property& the ."de& at the instance of an interested party&
a relative& or a friend& !ay appoint a person to represent hi! in all that !ay be necessary.
This sa!e r"le shall be observed when "nder si!ilar circ"!stances the power conferred by the
absentee has e)pired. (131a)
Art. '32. The appoint!ent referred to in the precedin article havin been !ade& the ."de shall
take the necessary !eas"res to safe"ard the rihts and interests of the absentee and shall specify
the powers& obliations and re!"neration of his representative& re"latin the!& accordin to the
circ"!stances& by the r"les concernin "ardians. (132)
Art. '3'. (n the appoint!ent of a representative& the spo"se present shall be preferred when there is
no leal separation.
(f the absentee left no spo"se& or if the spo"se present is a !inor& any co!petent person !ay be
appointed by the co"rt. (13'a)

C9APT:- 2
D:CLA-AT(#6 #A AB@:6C:

Art. '3*. Two years havin elapsed witho"t any news abo"t the absentee or since the receipt of the
last news& and five years in case the absentee has left a person in chare of the ad!inistration of his
property& his absence !ay be declared. (13*)
Art. '3+. The followin !ay ask for the declaration of absence<
(1) The spo"se present8
(2) The heirs instit"ted in a will& who !ay present an a"thentic copy of the sa!e8
(') The relatives who !ay s"cceed by the law of intestacy8
(*) Those who !ay have over the property of the absentee so!e riht s"bordinated to the condition
of his death. (13+)
Art. '3,. The ."dicial declaration of absence shall not take effect "ntil si) !onths after its
p"blication in a newspaper of eneral circ"lation. (13,a)

C9APT:- '
AD=(6(@T-AT(#6 #A T9: P-#P:-TF #A T9: AB@:6T::

Art. '3/. An ad!inistrator of the absentee;s property shall be appointed in accordance with Article
'3'. (13/a)
Art. '33. The wife who is appointed as an ad!inistratri) of the h"sband;s property cannot alienate
or enc"!ber the h"sband;s property& or that of the con."al partnership& witho"t ."dicial a"thority.
(133a)
Art. '35. The ad!inistration shall cease in any of the followin cases<
(1) 2hen the absentee appears personally or by !eans of an aent8
(2) 2hen the death of the absentee is proved and his testate or intestate heirs appear8
(') 2hen a third person appears& showin by a proper doc"!ent that he has ac0"ired the absentee;s
property by p"rchase or other title.
(n these cases the ad!inistrator shall cease in the perfor!ance of his office& and the property shall
be at the disposal of those who !ay have a riht thereto. (157)

C9APT:- *
P-:@?=PT(#6 #A D:AT9

Art. '57. After an absence of seven years& it bein "nknown whether or not the absentee still lives&
he shall be pres"!ed dead for all p"rposes& e)cept for those of s"ccession.
The absentee shall not be pres"!ed dead for the p"rpose of openin his s"ccession till after an
absence of ten years. (f he disappeared after the ae of seventy1five years& an absence of five years
shall be s"fficient in order that his s"ccession !ay be opened. (n)
Art. '51. The followin shall be pres"!ed dead for all p"rposes& incl"din the division of the
estate a!on the heirs<
(1) A person on board a vessel lost d"rin a sea voyae& or an aeroplane which is !issin& who has
not been heard of for fo"r years since the loss of the vessel or aeroplane8
(2) A person in the ar!ed forces who has taken part in war& and has been !issin for fo"r years8
(') A person who has been in daner of death "nder other circ"!stances and his e)istence has not
been known for fo"r years. (n)
Art. '52. (f the absentee appears& or witho"t appearin his e)istence is proved& he shall recover his
property in the condition in which it !ay be fo"nd& and the price of any property that !ay have
been alienated or the property ac0"ired therewith8 b"t he cannot clai! either fr"its or rents. (15*)

C9APT:- +
:AA:CT #A AB@:6C: ?P#6 T9:
C#6T(6$:6T -($9T@ #A T9: AB@:6T::

Art. '5'. 2hoever clai!s a riht pertainin to a person whose e)istence is not reconi%ed !"st
prove that he was livin at the ti!e his e)istence was necessary in order to ac0"ire said riht. (15+)
Art. '5*. 2itho"t pre."dice to the provision of the precedin article& "pon the openin of a
s"ccession to which an absentee is called& his share shall accr"e to his co1heirs& "nless he has heirs&
assins& or a representative. They shall all& as the case !ay be& !ake an inventory of the property.
(15,a)
Art. '5+. The provisions of the precedin article are "nderstood to be witho"t pre."dice to the
action of petition for inheritance or other rihts which are vested in the absentee& his
representatives or s"ccessors in interest. These rihts shall not be e)tin"ished save by lapse of
ti!e fi)ed for prescription. (n the record that is !ade in the -eistry of the real estate which
accr"es to the coheirs& the circ"!stance of its bein s"b.ect to the provisions of this article shall be
stated. (15/)
Art. '5,. Those who !ay have entered "pon the inheritance shall appropriate the fr"its received in
ood faith so lon as the absentee does not appear& or while his representatives or s"ccessors in
interest do not brin the proper actions. (153)

Title E>. 1 :=A6C(PAT(#6 A6D A$: #A =A4#-(TF

C9APT:- 1
:=A6C(PAT(#6

Art. '5/. :!ancipation takes place<
(1) By the !arriae of the !inor8
(2) By the attain!ent of !a.ority8
(') By the concession of the father or of the !other who e)ercise parental a"thority. ('1*)
Art. '53. :!ancipation treated of in 6o. ' of the precedin article shall be effected in a p"blic
instr"!ent which shall be recorded in the Civil -eister& and "nless so recorded& it shall take no
effect aainst third persons. ('1,a)
Art. '55. :!ancipation by !arriae or by vol"ntary concession shall ter!inate parental a"thority
over the child;s person. (t shall enable the !inor to ad!inister his property as tho"h he were of
ae& b"t he cannot borrow !oney or alienate or enc"!ber real property witho"t the consent of his
father or !other& or "ardian. 9e can s"e and be s"ed in co"rt only with the assistance of his father&
!other or "ardian. ('1/a)
Art. *77. (n order that e!ancipation by concession of the father or of the !other !ay take place& it
is re0"ired that the !inor be eihteen years of ae& and that he ive his consent thereto. ('13)
Art. *71. :!ancipation is final or irrevocable. ('15a)

CHAPTER 2
A%E OF MA&ORITY

Art. *72. =a.ority co!!ences "pon the attain!ent of the ae of twenty1one years.
The person who has reached !a.ority is 0"alified for all acts of civil life& save the e)ceptions
established by this Code in special cases. ('27a)
Art. *7'. 6otwithstandin the provisions of the precedin article& a da"hter above twenty1one b"t
below twenty1three years of ae cannot leave the parental ho!e witho"t the consent of the father or
!other in whose co!pany she lives& e)cept to beco!e a wife& or when she e)ercises a profession
or callin& or when the father or !other has contracted a s"bse0"ent !arriae. ('21a)
Art. *7*. An orphan who is !inor !ay& at the instance of any relative or other person& obtain
e!ancipation by concession "pon an order of the Co"rt of Airst (nstance. ('22a)
Art. *7+. Aor the concession and approval referred to in the precedin article it is necessary<
(1) That the !inor be eihteen years of ae8
(2) That he consent thereto8 and
(') That the concession be dee!ed convenient for the !inor.
The concession shall be recorded in the Civil -eister. ('2'a)
Art. *7,. The provisions of Article '55 are applicable to an orphan who has been e!ancipated
accordin to Article *7*. The co"rt will ive the necessary approval with respect to the contracts
!entioned in Article '55. (n litiations& a "ardian ad lite! for the !inor shall be appointed by the
co"rt. ('2*a)

Title E>(. 1 C(>(L -:$(@T:-

Art. *7/. Acts& events and ."dicial decrees concernin the civil stat"s of persons shall be recorded
in the civil reister. ('2+a)
Art. *73. The followin shall be entered in the civil reister<
(1) Births8
(2) !arriaes8
(') deaths8
(*) leal separations8
(+) ann"l!ents of !arriae8
(,) ."d!ents declarin !arriaes void fro! the beinnin8
(/) leiti!ations8
(3) adoptions8
(5) acknowled!ents of nat"ral children8
(17) nat"rali%ation8
(11) loss& or (12) recovery of citi%enship8
(1') civil interdiction8
(1*) ."dicial deter!ination of filiation8
(1+) vol"ntary e!ancipation of a !inor8 and
(1,) chanes of na!e. ('2,a)
Art. *75. (n cases of leal separation& adoption& nat"rali%ation and other ."dicial orders !entioned
in the precedin article& it shall be the d"ty of the clerk of the co"rt which iss"ed the decree to
ascertain whether the sa!e has been reistered& and if this has not been done& to send a copy of said
decree to the civil reistry of the city or !"nicipality where the co"rt is f"nctionin. (n)
Art. *17. The books !akin "p the civil reister and all doc"!ents relatin thereto shall be
considered p"blic doc"!ents and shall be pri!a facie evidence of the facts therein contained. (n)
Art. *11. :very civil reistrar shall be civilly responsible for any "na"thori%ed alteration !ade in
any civil reister& to any person s"fferin da!ae thereby. 9owever& the civil reistrar !ay e)e!pt
hi!self fro! s"ch liability if he proves that he has taken every reasonable preca"tion to prevent the
"nlawf"l alteration. (n)
Art. *12. 6o entry in a civil reister shall be chaned or corrected& witho"t a ."dicial order. (n)
Art. *1'. All other !atters pertainin to the reistration of civil stat"s shall be overned by special
laws. (n)
REPUBLIC ACT NO. 386
AN ACT TO ORDAIN AND INSTITUTE
THE CIVIL CODE OF THE PHILIPPINES
BOOK II
PROPERTY' OWNERSHIP' AND ITS MODIFICATIONS
Ti!" I. # CLASSIFICATION OF PROPERTY
PRELIMINARY PROVISIONS

Art. *1*. All thins which are or !ay be the ob.ect of appropriation are considered either<
(1) (!!ovable or real property8 or
(2) =ovable or personal property. (''')

CHAPTER $
IMMOVABLE PROPERTY

Art. *1+. The followin are i!!ovable property<
(1) Land& b"ildins& roads and constr"ctions of all kinds adhered to the soil8
(2) Trees& plants& and rowin fr"its& while they are attached to the land or for! an interal part of
an i!!ovable8
(') :verythin attached to an i!!ovable in a fi)ed !anner& in s"ch a way that it cannot be
separated therefro! witho"t breakin the !aterial or deterioration of the ob.ect8
(*) @tat"es& reliefs& paintins or other ob.ects for "se or orna!entation& placed in b"ildins or on
lands by the owner of the i!!ovable in s"ch a !anner that it reveals the intention to attach the!
per!anently to the tene!ents8
(+) =achinery& receptacles& instr"!ents or i!ple!ents intended by the owner of the tene!ent for
an ind"stry or works which !ay be carried on in a b"ildin or on a piece of land& and which tend
directly to !eet the needs of the said ind"stry or works8
(,) Ani!al ho"ses& pieon1ho"ses& beehives& fish ponds or breedin places of si!ilar nat"re& in
case their owner has placed the! or preserves the! with the intention to have the! per!anently
attached to the land& and for!in a per!anent part of it8 the ani!als in these places are incl"ded8
(/) Aertili%er act"ally "sed on a piece of land8
(3) =ines& 0"arries& and sla d"!ps& while the !atter thereof for!s part of the bed& and waters
either r"nnin or stanant8
(5) Docks and str"ct"res which& tho"h floatin& are intended by their nat"re and ob.ect to re!ain
at a fi)ed place on a river& lake& or coast8
(17) Contracts for p"blic works& and servit"des and other real rihts over i!!ovable property.
(''*a)
CHAPTER 2
MOVABLE PROPERTY

Art. *1,. The followin thins are dee!ed to be personal property<
(1) Those !ovables s"sceptible of appropriation which are not incl"ded in the precedin article8
(2) -eal property which by any special provision of law is considered as personal property8
(') Aorces of nat"re which are bro"ht "nder control by science8 and
(*) (n eneral& all thins which can be transported fro! place to place witho"t i!pair!ent of the
real property to which they are fi)ed. (''+a)
Art. *1/. The followin are also considered as personal property<
(1) #bliations and actions which have for their ob.ect !ovables or de!andable s"!s8 and
(2) @hares of stock of aric"lt"ral& co!!ercial and ind"strial entities& altho"h they !ay have real
estate. ('',a)
Art. *13. =ovable property is either cons"!able or noncons"!able. To the first class belon those
!ovables which cannot be "sed in a !anner appropriate to their nat"re witho"t their bein
cons"!ed8 to the second class belon all the others. (''/)

CHAPTER 3
PROPERTY IN RELATION TO THE PERSON TO WHOM IT BELON%S

Art. *15. Property is either of p"blic do!inion or of private ownership. (''3)
Art. *27. The followin thins are property of p"blic do!inion<
(1) Those intended for p"blic "se& s"ch as roads& canals& rivers& torrents& ports and brides
constr"cted by the @tate& banks& shores& roadsteads& and others of si!ilar character8
(2) Those which belon to the @tate& witho"t bein for p"blic "se& and are intended for so!e p"blic
service or for the develop!ent of the national wealth. (''5a)
Art. *21. All other property of the @tate& which is not of the character stated in the precedin
article& is patri!onial property. ('*7a)
Art. *22. Property of p"blic do!inion& when no loner intended for p"blic "se or for p"blic
service& shall for! part of the patri!onial property of the @tate. ('*1a)
Art. *2'. The property of provinces& cities& and !"nicipalities is divided into property for p"blic
"se and patri!onial property. ('*')
Art. *2*. Property for p"blic "se& in the provinces& cities& and !"nicipalities& consist of the
provincial roads& city streets& !"nicipal streets& the s0"ares& fo"ntains& p"blic waters& pro!enades&
and p"blic works for p"blic service paid for by said provinces& cities& or !"nicipalities.
All other property possessed by any of the! is patri!onial and shall be overned by this Code&
witho"t pre."dice to the provisions of special laws. ('**a)
Art. *2+. Property of private ownership& besides the patri!onial property of the @tate& provinces&
cities& and !"nicipalities& consists of all property belonin to private persons& either individ"ally
or collectively. ('*+a)

PROVISIONS COMMON TO THE THREE PRECEDIN% CHAPTERS

Art. *2,. 2henever by provision of the law& or an individ"al declaration& the e)pression
"i!!ovable thins or property&" or "!ovable thins or property&" is "sed& it shall be dee!ed to
incl"de& respectively& the thins en"!erated in Chapter 1 and Chapter 2.
2henever the word "!"ebles&" or "f"rnit"re&" is "sed alone& it shall not be dee!ed to incl"de
!oney& credits& co!!ercial sec"rities& stocks and bonds& .ewelry& scientific or artistic collections&
books& !edals& ar!s& clothin& horses or carriaes and their accessories& rains& li0"ids and
!erchandise& or other thins which do not have as their principal ob.ect the f"rnishin or
orna!entin of a b"ildin& e)cept where fro! the conte)t of the law& or the individ"al declaration&
the contrary clearly appears. ('*,a)

Ti!" II. # OWNERSHIP
CHAPTER $
OWNERSHIP IN %ENERAL

Art. *2/. #wnership !ay be e)ercised over thins or rihts. (n)
Art. *23. The owner has the riht to en.oy and dispose of a thin& witho"t other li!itations than
those established by law.
The owner has also a riht of action aainst the holder and possessor of the thin in order to
recover it. ('*3a)
Art. *25. The owner or lawf"l possessor of a thin has the riht to e)cl"de any person fro! the
en.oy!ent and disposal thereof. Aor this p"rpose& he !ay "se s"ch force as !ay be reasonably
necessary to repel or prevent an act"al or threatened "nlawf"l physical invasion or "s"rpation of
his property. (n)
Art. *'7. :very owner !ay enclose or fence his land or tene!ents by !eans of walls& ditches& live
or dead hedes& or by any other !eans witho"t detri!ent to servit"des constit"ted thereon. ('33)
Art. *'1. The owner of a thin cannot !ake "se thereof in s"ch !anner as to in."re the rihts of a
third person. (n)
Art. *'2. The owner of a thin has no riht to prohibit the interference of another with the sa!e& if
the interference is necessary to avert an i!!inent daner and the threatened da!ae& co!pared to
the da!ae arisin to the owner fro! the interference& is !"ch reater. The owner !ay de!and
fro! the person benefited inde!nity for the da!ae to hi!. (n)
Art. *''. Act"al possession "nder clai! of ownership raises disp"table pres"!ption of ownership.
The tr"e owner !"st resort to ."dicial process for the recovery of the property. (n)
Art. *'*. (n an action to recover& the property !"st be identified& and the plaintiff !"st rely on the
strenth of his title and not on the weakness of the defendant;s clai!. (n)
Art. *'+. 6o person shall be deprived of his property e)cept by co!petent a"thority and for p"blic
"se and always "pon pay!ent of ."st co!pensation.
@ho"ld this re0"ire!ent be not first co!plied with& the co"rts shall protect and& in a proper case&
restore the owner in his possession. ('*5a)
Art. *',. 2hen any property is conde!ned or sei%ed by co!petent a"thority in the interest of
health& safety or sec"rity& the owner thereof shall not be entitled to co!pensation& "nless he can
show that s"ch conde!nation or sei%"re is "n."stified. (n)
Art. *'/. The owner of a parcel of land is the owner of its s"rface and of everythin "nder it& and
he can constr"ct thereon any works or !ake any plantations and e)cavations which he !ay dee!
proper& witho"t detri!ent to servit"des and s"b.ect to special laws and ordinances. 9e cannot
co!plain of the reasonable re0"ire!ents of aerial naviation. ('+7a)
Art. *'3. 9idden treas"re belons to the owner of the land& b"ildin& or other property on which it
is fo"nd.
6evertheless& when the discovery is !ade on the property of another& or of the @tate or any of its
s"bdivisions& and by chance& one1half thereof shall be allowed to the finder. (f the finder is a
trespasser& he shall not be entitled to any share of the treas"re.
(f the thins fo"nd be of interest to science of the arts& the @tate !ay ac0"ire the! at their ."st
price& which shall be divided in confor!ity with the r"le stated. ('+1a)
Art. *'5. By treas"re is "nderstood& for leal p"rposes& any hidden and "nknown deposit of !oney&
.ewelry& or other precio"s ob.ects& the lawf"l ownership of which does not appear. ('+2)

CHAPTER 3
RI%HT OF ACCESSION
%ENERAL PROVISIONS

Art. **7. The ownership of property ives the riht by accession to everythin which is prod"ced
thereby& or which is incorporated or attached thereto& either nat"rally or artificially. ('+')

@:CT(#6 1. 1 -iht of Accession with -espect to
2hat is Prod"ced by Property

Art. **1. To the owner belons<
(1) The nat"ral fr"its8
(2) The ind"strial fr"its8
(') The civil fr"its. ('+*)
Art. **2. 6at"ral fr"its are the spontaneo"s prod"cts of the soil& and the yo"n and other prod"cts
of ani!als.
(nd"strial fr"its are those prod"ced by lands of any kind thro"h c"ltivation or labor.
Civil fr"its are the rents of b"ildins& the price of leases of lands and other property and the a!o"nt
of perpet"al or life ann"ities or other si!ilar inco!e. ('++a)
Art. **'. 9e who receives the fr"its has the obliation to pay the e)penses !ade by a third person
in their prod"ction& atherin& and preservation. ('+,)
Art. ***. #nly s"ch as are !anifest or born are considered as nat"ral or ind"strial fr"its.
2ith respect to ani!als& it is s"fficient that they are in the wo!b of the !other& altho"h "nborn.
('+/)

@:CT(#6 2. 1 -iht of Accession with -espect
to (!!ovable Property

Art. **+. 2hatever is b"ilt& planted or sown on the land of another and the i!prove!ents or repairs
!ade thereon& belon to the owner of the land& s"b.ect to the provisions of the followin articles.
('+3)
Art. **,. All works& sowin& and plantin are pres"!ed !ade by the owner and at his e)pense&
"nless the contrary is proved. ('+5)
Art. **/. The owner of the land who !akes thereon& personally or thro"h another& plantins&
constr"ctions or works with the !aterials of another& shall pay their val"e8 and& if he acted in bad
faith& he shall also be oblied to the reparation of da!aes. The owner of the !aterials shall have
the riht to re!ove the! only in case he can do so witho"t in."ry to the work constr"cted& or
witho"t the plantins& constr"ctions or works bein destroyed. 9owever& if the landowner acted in
bad faith& the owner of the !aterials !ay re!ove the! in any event& with a riht to be inde!nified
for da!aes. (',7a)
Art. **3. The owner of the land on which anythin has been b"ilt& sown or planted in ood faith&
shall have the riht to appropriate as his own the works& sowin or plantin& after pay!ent of the
inde!nity provided for in Articles +*, and +*3& or to oblie the one who b"ilt or planted to pay the
price of the land& and the one who sowed& the proper rent. 9owever& the b"ilder or planter cannot
be oblied to b"y the land if its val"e is considerably !ore than that of the b"ildin or trees. (n
s"ch case& he shall pay reasonable rent& if the owner of the land does not choose to appropriate the
b"ildin or trees after proper inde!nity. The parties shall aree "pon the ter!s of the lease and in
case of disaree!ent& the co"rt shall fi) the ter!s thereof. (',1a)
Art. **5. 9e who b"ilds& plants or sows in bad faith on the land of another& loses what is b"ilt&
planted or sown witho"t riht to inde!nity. (',2)
Art. *+7. The owner of the land on which anythin has been b"ilt& planted or sown in bad faith !ay
de!and the de!olition of the work& or that the plantin or sowin be re!oved& in order to replace
thins in their for!er condition at the e)pense of the person who b"ilt& planted or sowed8 or he !ay
co!pel the b"ilder or planter to pay the price of the land& and the sower the proper rent. (','a)
Art. *+1. (n the cases of the two precedin articles& the landowner is entitled to da!aes fro! the
b"ilder& planter or sower. (n)
Art. *+2. The b"ilder& planter or sower in bad faith is entitled to rei!b"rse!ent for the necessary
e)penses of preservation of the land. (n)
Art. *+'. (f there was bad faith& not only on the part of the person who b"ilt& planted or sowed on
the land of another& b"t also on the part of the owner of s"ch land& the rihts of one and the other
shall be the sa!e as tho"h both had acted in ood faith.
(t is "nderstood that there is bad faith on the part of the landowner whenever the act was done with
his knowlede and witho"t opposition on his part. ('+*a)
Art. *+*. 2hen the landowner acted in bad faith and the b"ilder& planter or sower proceeded in
ood faith& the provisions of article **/ shall apply. (n)
Art. *++. (f the !aterials& plants or seeds belon to a third person who has not acted in bad faith&
the owner of the land shall answer s"bsidiarily for their val"e and only in the event that the one
who !ade "se of the! has no property with which to pay.
This provision shall not apply if the owner !akes "se of the riht ranted by article *+7. (f the
owner of the !aterials& plants or seeds has been paid by the b"ilder& planter or sower& the latter !ay
de!and fro! the landowner the val"e of the !aterials and labor. (',+a)
Art. *+,. (n the cases re"lated in the precedin articles& ood faith does not necessarily e)cl"de
nelience& which ives riht to da!aes "nder article 21/,. (n)
Art. *+/. To the owners of lands ad.oinin the banks of rivers belon the accretion which they
rad"ally receive fro! the effects of the c"rrent of the waters. ('',)
Art. *+3. The owners of estates ad.oinin ponds or laoons do not ac0"ire the land left dry by the
nat"ral decrease of the waters& or lose that in"ndated by the! in e)traordinary floods. (',/)
Art. *+5. 2henever the c"rrent of a river& creek or torrent sereates fro! an estate on its bank a
known portion of land and transfers it to another estate& the owner of the land to which the
sereated portion beloned retains the ownership of it& provided that he re!oves the sa!e within
two years. (',3a)
Art. *,7. Trees "prooted and carried away by the c"rrent of the waters belon to the owner of the
land "pon which they !ay be cast& if the owners do not clai! the! within si) !onths. (f s"ch
owners clai! the!& they shall pay the e)penses inc"rred in atherin the! or p"ttin the! in a safe
place. (',5a)
Art. *,1. -iver beds which are abandoned thro"h the nat"ral chane in the co"rse of the waters
ipso facto belon to the owners whose lands are occ"pied by the new co"rse in proportion to the
area lost. 9owever& the owners of the lands ad.oinin the old bed shall have the riht to ac0"ire the
sa!e by payin the val"e thereof& which val"e shall not e)ceed the val"e of the area occ"pied by
the new bed. ('/7a)
Art. *,2. 2henever a river& chanin its co"rse by nat"ral ca"ses& opens a new bed thro"h a
private estate& this bed shall beco!e of p"blic do!inion. ('/2a)
Art. *,'. 2henever the c"rrent of a river divides itself into branches& leavin a piece of land or part
thereof isolated& the owner of the land retains his ownership. 9e also retains it if a portion of land is
separated fro! the estate by the c"rrent. ('/*)
Art. *,*. (slands which !ay be for!ed on the seas within the ."risdiction of the Philippines& on
lakes& and on naviable or floatable rivers belon to the @tate. ('/1a)
Art. *,+. (slands which thro"h s"ccessive acc"!"lation of all"vial deposits are for!ed in non1
naviable and non1floatable rivers& belon to the owners of the !arins or banks nearest to each of
the!& or to the owners of both !arins if the island is in the !iddle of the river& in which case it
shall be divided lonit"dinally in halves. (f a sinle island th"s for!ed be !ore distant fro! one
!arin than fro! the other& the owner of the nearer !arin shall be the sole owner thereof. ('/'a)

@:CT(#6 '. 1 -iht of Accession
with -espect to =ovable Property

Art. *,,. 2henever two !ovable thins belonin to different owners are& witho"t bad faith&
"nited in s"ch a way that they for! a sinle ob.ect& the owner of the principal thin ac0"ires the
accessory& inde!nifyin the for!er owner thereof for its val"e. ('/+)
Art. *,/. The principal thin& as between two thins incorporated& is dee!ed to be that to which the
other has been "nited as an orna!ent& or for its "se or perfection. ('/,)
Art. *,3. (f it cannot be deter!ined by the r"le iven in the precedin article which of the two
thins incorporated is the principal one& the thin of the reater val"e shall be so considered& and as
between two thins of e0"al val"e& that of the reater vol"!e.
(n paintin and sc"lpt"re& writins& printed !atter& enravin and lithoraphs& the board& !etal&
stone& canvas& paper or parch!ent shall be dee!ed the accessory thin. ('//)
Art. *,5. 2henever the thins "nited can be separated witho"t in."ry& their respective owners !ay
de!and their separation.
6evertheless& in case the thin "nited for the "se& e!bellish!ent or perfection of the other& is !"ch
!ore precio"s than the principal thin& the owner of the for!er !ay de!and its separation& even
tho"h the thin to which it has been incorporated !ay s"ffer so!e in."ry. ('/3)
Art. */7. 2henever the owner of the accessory thin has !ade the incorporation in bad faith& he
shall lose the thin incorporated and shall have the obliation to inde!nify the owner of the
principal thin for the da!aes he !ay have s"ffered.
(f the one who has acted in bad faith is the owner of the principal thin& the owner of the accessory
thin shall have a riht to choose between the for!er payin hi! its val"e or that the thin
belonin to hi! be separated& even tho"h for this p"rpose it be necessary to destroy the principal
thin8 and in both cases& f"rther!ore& there shall be inde!nity for da!aes.
(f either one of the owners has !ade the incorporation with the knowlede and witho"t the
ob.ection of the other& their respective rihts shall be deter!ined as tho"h both acted in ood
faith. ('/5a)
Art. */1. 2henever the owner of the !aterial e!ployed witho"t his consent has a riht to an
inde!nity& he !ay de!and that this consist in the delivery of a thin e0"al in kind and val"e& and
in all other respects& to that e!ployed& or else in the price thereof& accordin to e)pert appraisal.
('37)
Art. */2. (f by the will of their owners two thins of the sa!e or different kinds are !i)ed& or if the
!i)t"re occ"rs by chance& and in the latter case the thins are not separable witho"t in."ry& each
owner shall ac0"ire a riht proportional to the part belonin to hi!& bearin in !ind the val"e of
the thins !i)ed or conf"sed. ('31)
Art. */'. (f by the will of only one owner& b"t in ood faith& two thins of the sa!e or different
kinds are !i)ed or conf"sed& the rihts of the owners shall be deter!ined by the provisions of the
precedin article.
(f the one who ca"sed the !i)t"re or conf"sion acted in bad faith& he shall lose the thin belonin
to hi! th"s !i)ed or conf"sed& besides bein oblied to pay inde!nity for the da!aes ca"sed to
the owner of the other thin with which his own was !i)ed. ('32)
Art. */*. #ne who in ood faith e!ploys the !aterial of another in whole or in part in order to
!ake a thin of a different kind& shall appropriate the thin th"s transfor!ed as his own&
inde!nifyin the owner of the !aterial for its val"e.
(f the !aterial is !ore precio"s than the transfor!ed thin or is of !ore val"e& its owner !ay& at
his option& appropriate the new thin to hi!self& after first payin inde!nity for the val"e of the
work& or de!and inde!nity for the !aterial.
(f in the !akin of the thin bad faith intervened& the owner of the !aterial shall have the riht to
appropriate the work to hi!self witho"t payin anythin to the !aker& or to de!and of the latter
that he inde!nify hi! for the val"e of the !aterial and the da!aes he !ay have s"ffered.
9owever& the owner of the !aterial cannot appropriate the work in case the val"e of the latter& for
artistic or scientific reasons& is considerably !ore than that of the !aterial. ('3'a)
Art. */+. (n the precedin articles& senti!ental val"e shall be d"ly appreciated. (n)

CHAPTER 3
(UIETIN% OF TITLE (n)

Art. */,. 2henever there is a clo"d on title to real property or any interest therein& by reason of any
instr"!ent& record& clai!& enc"!brance or proceedin which is apparently valid or effective b"t is
in tr"th and in fact invalid& ineffective& voidable& or "nenforceable& and !ay be pre."dicial to said
title& an action !ay be bro"ht to re!ove s"ch clo"d or to 0"iet the title.
An action !ay also be bro"ht to prevent a clo"d fro! bein cast "pon title to real property or any
interest therein.
Art. *//. The plaintiff !"st have leal or e0"itable title to& or interest in the real property which is
the s"b.ect !atter of the action. 9e need not be in possession of said property.
Art. */3. There !ay also be an action to 0"iet title or re!ove a clo"d therefro! when the contract&
instr"!ent or other obliation has been e)tin"ished or has ter!inated& or has been barred by
e)tinctive prescription.
Art. */5. The plaintiff !"st ret"rn to the defendant all benefits he !ay have received fro! the
latter& or rei!b"rse hi! for e)penses that !ay have redo"nded to the plaintiff;s benefit.
Art. *37. The principles of the eneral law on the 0"ietin of title are hereby adopted insofar as
they are not in conflict with this Code.
Art. *31. The proced"re for the 0"ietin of title or the re!oval of a clo"d therefro! shall be
overned by s"ch r"les of co"rt as the @"pre!e Co"rt shall pro!"lated.

CHAPTER )
RUINOUS BUILDIN%S AND TREES IN DAN%ER OF FALLIN%

Art. *32. (f a b"ildin& wall& col"!n& or any other constr"ction is in daner of fallin& the owner
shall be oblied to de!olish it or to e)ec"te the necessary work in order to prevent it fro! fallin.
(f the proprietor does not co!ply with this obliation& the ad!inistrative a"thorities !ay order the
de!olition of the str"ct"re at the e)pense of the owner& or take !eas"res to ins"re p"blic safety.
('35a)
Art. *3'. 2henever a lare tree threatens to fall in s"ch a way as to ca"se da!ae to the land or
tene!ent of another or to travelers over a p"blic or private road& the owner of the tree shall be
oblied to fell and re!ove it8 and sho"ld he not do so& it shall be done at his e)pense by order of
the ad!inistrative a"thorities. ('57a)

Title (((. 1 C#1#26:-@9(P

Art. *3*. There is co1ownership whenever the ownership of an "ndivided thin or riht belons to
different persons.
(n defa"lt of contracts& or of special provisions& co1ownership shall be overned by the provisions
of this Title. ('52)
Art. *3+. The share of the co1owners& in the benefits as well as in the chares& shall be proportional
to their respective interests. Any stip"lation in a contract to the contrary shall be void.
The portions belonin to the co1owners in the co1ownership shall be pres"!ed e0"al& "nless the
contrary is proved. ('5'a)
Art. *3,. :ach co1owner !ay "se the thin owned in co!!on& provided he does so in accordance
with the p"rpose for which it is intended and in s"ch a way as not to in."re the interest of the co1
ownership or prevent the other co1owners fro! "sin it accordin to their rihts. The p"rpose of
the co1ownership !ay be chaned by aree!ent& e)press or i!plied. ('5*a)
Art. *3/. Any one of the co1owners !ay brin an action in e.ect!ent. (n)
Art. *33. :ach co1owner shall have a riht to co!pel the other co1owners to contrib"te to the
e)penses of preservation of the thin or riht owned in co!!on and to the ta)es. Any one of the
latter !ay e)e!pt hi!self fro! this obliation by reno"ncin so !"ch of his "ndivided interest as
!ay be e0"ivalent to his share of the e)penses and ta)es. 6o s"ch waiver shall be !ade if it is
pre."dicial to the co1ownership. ('5+a)
Art. *35. -epairs for preservation !ay be !ade at the will of one of the co1owners& b"t he !"st& if
practicable& first notify his co1owners of the necessity for s"ch repairs. :)penses to i!prove or
e!bellish the thin shall be decided "pon by a !a.ority as deter!ined in Article *52. (n)
Art. *57. 2henever the different stories of a ho"se belon to different owners& if the titles of
ownership do not specify the ter!s "nder which they sho"ld contrib"te to the necessary e)penses
and there e)ists no aree!ent on the s"b.ect& the followin r"les shall be observed<
(1) The !ain and party walls& the roof and the other thins "sed in co!!on& shall be preserved at
the e)pense of all the owners in proportion to the val"e of the story belonin to each8
(2) :ach owner shall bear the cost of !aintainin the floor of his story8 the floor of the entrance&
front door& co!!on yard and sanitary works co!!on to all& shall be !aintained at the e)pense of
all the owners pro rata8
(') The stairs fro! the entrance to the first story shall be !aintained at the e)pense of all the
owners pro rata& with the e)ception of the owner of the ro"nd floor8 the stairs fro! the first to the
second story shall be preserved at the e)pense of all& e)cept the owner of the ro"nd floor and the
owner of the first story8 and so on s"ccessively. ('5,)
Art. *51. 6one of the co1owners shall& witho"t the consent of the others& !ake alterations in the
thin owned in co!!on& even tho"h benefits for all wo"ld res"lt therefro!. 9owever& if the
withholdin of the consent by one or !ore of the co1owners is clearly pre."dicial to the co!!on
interest& the co"rts !ay afford ade0"ate relief. ('5/a)
Art. *52. Aor the ad!inistration and better en.oy!ent of the thin owned in co!!on& the
resol"tions of the !a.ority of the co1owners shall be bindin.
There shall be no !a.ority "nless the resol"tion is approved by the co1owners who represent the
controllin interest in the ob.ect of the co1ownership.
@ho"ld there be no !a.ority& or sho"ld the resol"tion of the !a.ority be serio"sly pre."dicial to
those interested in the property owned in co!!on& the co"rt& at the instance of an interested party&
shall order s"ch !eas"res as it !ay dee! proper& incl"din the appoint!ent of an ad!inistrator.
2henever a part of the thin belons e)cl"sively to one of the co1owners& and the re!ainder is
owned in co!!on& the precedin provision shall apply only to the part owned in co!!on. ('53)
Art. *5'. :ach co1owner shall have the f"ll ownership of his part and of the fr"its and benefits
pertainin thereto& and he !ay therefore alienate& assin or !ortae it& and even s"bstit"te another
person in its en.oy!ent& e)cept when personal rihts are involved. B"t the effect of the alienation
or the !ortae& with respect to the co1owners& shall be li!ited to the portion which !ay be alloted
to hi! in the division "pon the ter!ination of the co1ownership. ('55)
Art. *5*. 6o co1owner shall be oblied to re!ain in the co1ownership. :ach co1owner !ay de!and
at any ti!e the partition of the thin owned in co!!on& insofar as his share is concerned.
6evertheless& an aree!ent to keep the thin "ndivided for a certain period of ti!e& not e)ceedin
ten years& shall be valid. This ter! !ay be e)tended by a new aree!ent.
A donor or testator !ay prohibit partition for a period which shall not e)ceed twenty years.
6either shall there be any partition when it is prohibited by law.
6o prescription shall r"n in favor of a co1owner or co1heir aainst his co1owners or co1heirs so
lon as he e)pressly or i!pliedly reconi%es the co1ownership. (*77a)
Art. *5+. 6otwithstandin the provisions of the precedin article& the co1owners cannot de!and a
physical division of the thin owned in co!!on& when to do so wo"ld render it "nserviceable for
the "se for which it is intended. B"t the co1ownership !ay be ter!inated in accordance with
Article *53. (*71a)
Art. *5,. Partition !ay be !ade by aree!ent between the parties or by ."dicial proceedins.
Partition shall be overned by the -"les of Co"rt insofar as they are consistent with this Code.
(*72)
Art. *5/. The creditors or assinees of the co1owners !ay take part in the division of the thin
owned in co!!on and ob.ect to its bein effected witho"t their conc"rrence. B"t they cannot
i!p"n any partition already e)ec"ted& "nless there has been fra"d& or in case it was !ade
notwithstandin a for!al opposition presented to prevent it& witho"t pre."dice to the riht of the
debtor or assinor to !aintain its validity. (*7')
Art. *53. 2henever the thin is essentially indivisible and the co1owners cannot aree that it be
allotted to one of the! who shall inde!nify the others& it shall be sold and its proceeds distrib"ted.
(*7*)
Art. *55. The partition of a thin owned in co!!on shall not pre."dice third persons& who shall
retain the rihts of !ortae& servit"de or any other real rihts belonin to the! before the
division was !ade. Personal rihts pertainin to third persons aainst the co1ownership shall also
re!ain in force& notwithstandin the partition. (*7+)
Art. +77. ?pon partition& there shall be a !"t"al acco"ntin for benefits received and
rei!b"rse!ents for e)penses !ade. Likewise& each co1owner shall pay for da!aes ca"sed by
reason of his nelience or fra"d. (n)
Art. +71. :very co1owner shall& after partition& be liable for defects of title and 0"ality of the
portion assined to each of the other co1owners. (n)

Ti!" IV. # SOME SPECIAL PROPERTIES
CHAPTER I
WATERS

@:CT(#6 1. 1 #wnership of 2aters

Art. +72. The followin are of p"blic do!inion<
(1) -ivers and their nat"ral beds8
(2) Contin"o"s or inter!ittent waters of sprins and brooks r"nnin in their nat"ral beds and the
beds the!selves8
(') 2aters risin contin"o"sly or inter!ittently on lands of p"blic do!inion8
(*) Lakes and laoons for!ed by 6at"re on p"blic lands& and their beds8
(+) -ain waters r"nnin thro"h ravines or sand beds& which are also of p"blic do!inion8
(,) @"bterranean waters on p"blic lands8
(/) 2aters fo"nd within the %one of operation of p"blic works& even if constr"cted by a contractor8
(3) 2aters risin contin"o"sly or inter!ittently on lands belonin to private persons& to the @tate&
to a province& or to a city or a !"nicipality fro! the !o!ent they leave s"ch lands8
(5) The waste waters of fo"ntains& sewers and p"blic establish!ents. (*7/)
Art. +7'. The followin are of private ownership<
(1) Contin"o"s or inter!ittent waters risin on lands of private ownership& while r"nnin thro"h
the sa!e8
(2) Lakes and laoons& and their beds& for!ed by 6at"re on s"ch lands8
(') @"bterranean waters fo"nd on the sa!e8
(*) -ain waters fallin on said lands& as lon as they re!ain within the bo"ndaries8
(+) The beds of flowin waters& contin"o"s or inter!ittent& for!ed by rain water& and those of
brooks& crossin lands which are not of p"blic do!inion.
(n every drain or a0"ed"ct& the water& bed& banks and floodates shall be considered as an interal
part of the land of b"ildin for which the waters are intended. The owners of lands& thro"h which
or alon the bo"ndaries of which the a0"ed"ct passes& cannot clai! ownership over it& or any riht
to the "se of its bed or banks& "nless the clai! is based on titles of ownership specifyin the riht
or ownership clai!ed. (*73)
@:CT(#6 2. 1 The ?se of P"blic 2aters

Art. +7*. The "se of p"blic waters is ac0"ired<
(1) By ad!inistrative concession8
(2) By prescription for ten years.
The e)tent of the rihts and obliations of the "se shall be that established& in the first case& by the
ter!s of the concession& and& in the second case& by the !anner and for! in which the waters have
been "sed. (*75a)
Art. +7+. :very concession for the "se of waters is "nderstood to be witho"t pre."dice to third
persons. (*17)
Art. +7,. The riht to !ake "se of p"blic waters is e)tin"ished by the lapse of the concession and
by non1"ser for five years. (*11a)

@:CT(#6 '. 1 The ?se of 2aters of Private #wnership

Art. +7/. The owner of a piece of land on which a sprin or brook rises& be it contin"o"s or
inter!ittent& !ay "se its waters while they r"n thro"h the sa!e& b"t after the waters leave the land
they shall beco!e p"blic& and their "se shall be overned by the @pecial Law of 2aters of A""st
'& 13,,& and by the (rriation Law. (*12a)
Art. +73. The private ownership of the beds of rain waters does not ive a riht to !ake works or
constr"ctions which !ay chane their co"rse to the da!ae of third persons& or whose destr"ction&
by the force of floods& !ay ca"se s"ch da!ae. (*1')
Art. +75. 6o one !ay enter private property to search waters or !ake "se of the! witho"t
per!ission fro! the owners& e)cept as provided by the =inin Law. (*1*a)
Art. +17. The ownership which the proprietor of a piece of land has over the waters risin thereon
does not pre."dice the rihts which the owners of lower estates !ay have leally ac0"ired to the
"se thereof. (*1+)
Art. +11. :very owner of a piece of land has the riht to constr"ct within his property& reservoirs
for rain waters& provided he ca"ses no da!ae to the p"blic or to third persons. (*1,)

@:CT(#6 *. 1 @"bterranean 2aters

Art. +12. #nly the owner of a piece of land& or another person with his per!ission& !ay !ake
e)plorations thereon for s"bterranean waters& e)cept as provided by the =inin Law.
:)plorations for s"bterranean waters on lands of p"blic do!inion !ay be !ade only with the
per!ission of the ad!inistrative a"thorities. (*1/a)
Art. +1'. 2aters artificially bro"ht forth in accordance with the @pecial Law of 2aters of A""st
'& 13,,& belon to the person who bro"ht the! "p. (*13)
Art. +1*. 2hen the owner of waters artificially bro"ht to the s"rface abandons the! to their
nat"ral co"rse& they shall beco!e of p"blic do!inion. (*15)

@:CT(#6 +. 1 $eneral Provisions

Art. +1+. The owner of a piece of land on which there are defensive works to check waters& or on
which& d"e to a chane of their co"rse& it !ay be necessary to reconstr"ct s"ch works& shall be
oblied& at his election& either to !ake the necessary repairs or constr"ction hi!self& or to per!it
the! to be done& witho"t da!ae to hi!& by the owners of the lands which s"ffer or are clearly
e)posed to s"ffer in."ry. (*27)
Art. +1,. The provisions of the precedin article are applicable to the case in which it !ay be
necessary to clear a piece of land of !atter& whose acc"!"lation or fall !ay obstr"ct the co"rse of
the waters& to the da!ae or peril of third persons. (*21)
Art. +1/. All the owners who participate in the benefits arisin fro! the works referred to in the
two precedin articles& shall be oblied to contrib"te to the e)penses of constr"ction in proportion
to their respective interests. Those who by their fa"lt !ay have ca"sed the da!ae shall be liable
for the e)penses. (*22)
Art. +13. All !atters not e)pressly deter!ined by the provisions of this Chapter shall be overned
by the special Law of 2aters of A""st '& 13,,& and by the (rriation Law. (*2+a)

C9APT:- 2
=(6:-AL@

Art. +15. =inin clai!s and rihts and other !atters concernin !inerals and !ineral lands are
overned by special laws. (*2/a)

C9APT:- '
T-AD:1=A-G@ A6D T-AD:16A=:@

Art. +27. A trade1!ark or trade1na!e d"ly reistered in the proper overn!ent b"rea" or office is
owned by and pertains to the person& corporation& or fir! reisterin the sa!e& s"b.ect to the
provisions of special laws. (n)
Art. +21. The oodwill of a b"siness is property& and !ay be transferred toether with the riht to
"se the na!e "nder which the b"siness is cond"cted. (n)
Art. +22. Trade1!arks and trade1na!es are overned by special laws. (n)

Ti!" V. # POSSESSION
CHAPTER $
POSSESSION AND THE KINDS THEREOF

Art. +2'. Possession is the holdin of a thin or the en.oy!ent of a riht. (*'7a)
Art. +2*. Possession !ay be e)ercised in one;s own na!e or in that of another. (*1'a)
Art. +2+. The possession of thins or rihts !ay be had in one of two concepts< either in the
concept of owner& or in that of the holder of the thin or riht to keep or en.oy it& the ownership
pertainin to another person. (*'2)
Art. +2,. 9e is dee!ed a possessor in ood faith who is not aware that there e)ists in his title or
!ode of ac0"isition any flaw which invalidates it.
9e is dee!ed a possessor in bad faith who possesses in any case contrary to the foreoin.
=istake "pon a do"btf"l or diffic"lt 0"estion of law !ay be the basis of ood faith. (*''a)
Art. +2/. $ood faith is always pres"!ed& and "pon hi! who allees bad faith on the part of a
possessor rests the b"rden of proof. (*'*)
Art. +23. Possession ac0"ired in ood faith does not lose this character e)cept in the case and fro!
the !o!ent facts e)ist which show that the possessor is not "naware that he possesses the thin
i!properly or wronf"lly. (*'+a)
Art. +25. (t is pres"!ed that possession contin"es to be en.oyed in the sa!e character in which it
was ac0"ired& "ntil the contrary is proved. (*',)
Art. +'7. #nly thins and rihts which are s"sceptible of bein appropriated !ay be the ob.ect of
possession. (*'/)

CHAPTER 2
AC(UISITION OF POSSESSION
Art. +'1. Possession is ac0"ired by the !aterial occ"pation of a thin or the e)ercise of a riht& or
by the fact that it is s"b.ect to the action of o"r will& or by the proper acts and leal for!alities
established for ac0"irin s"ch riht. (*'3a)
Art. +'2. Possession !ay be ac0"ired by the sa!e person who is to en.oy it& by his leal
representative& by his aent& or by any person witho"t any power whatever< b"t in the last case& the
possession shall not be considered as ac0"ired "ntil the person in whose na!e the act of possession
was e)ec"ted has ratified the sa!e& witho"t pre."dice to the ."ridical conse0"ences of neotior"!
estio in a proper case. (*'5a)
Art. +''. The possession of hereditary property is dee!ed trans!itted to the heir witho"t
interr"ption and fro! the !o!ent of the death of the decedent& in case the inheritance is accepted.
#ne who validly reno"nces an inheritance is dee!ed never to have possessed the sa!e. (**7)
Art. +'*. #n who s"cceeds by hereditary title shall not s"ffer the conse0"ences of the wronf"l
possession of the decedent& if it is not shown that he was aware of the flaws affectin it8 b"t the
effects of possession in ood faith shall not benefit hi! e)cept fro! the date of the death of the
decedent. (**2)
Art. +'+. =inors and incapacitated persons !ay ac0"ire the possession of thins8 b"t they need the
assistance of their leal representatives in order to e)ercise the rihts which fro! the possession
arise in their favor. (**')
Art. +',. (n no case !ay possession be ac0"ired thro"h force or inti!idation as lon as there is a
possessor who ob.ects thereto. 9e who believes that he has an action or a riht to deprive another
of the holdin of a thin& !"st invoke the aid of the co!petent co"rt& if the holder sho"ld ref"se to
deliver the thin. (**1a)
Art. +'/. Acts !erely tolerated& and those e)ec"ted clandestinely and witho"t the knowlede of the
possessor of a thin& or by violence& do not affect possession. (***)
Art. +'3. Possession as a fact cannot be reconi%ed at the sa!e ti!e in two different personalities
e)cept in the cases of co1possession. @ho"ld a 0"estion arise reardin the fact of possession& the
present possessor shall be preferred8 if there are two possessors& the one loner in possession8 if the
dates of the possession are the sa!e& the one who presents a title8 and if all these conditions are
e0"al& the thin shall be placed in ."dicial deposit pendin deter!ination of its possession or
ownership thro"h proper proceedins. (**+)

CHAPTER 3
EFFECTS OF POSSESSION

Art. +'5. :very possessor has a riht to be respected in his possession8 and sho"ld he be dist"rbed
therein he shall be protected in or restored to said possession by the !eans established by the laws
and the -"les of Co"rt.
A possessor deprived of his possession thro"h forcible entry !ay within ten days fro! the filin
of the co!plaint present a !otion to sec"re fro! the co!petent co"rt& in the action for forcible
entry& a writ of preli!inary !andatory in."nction to restore hi! in his possession. The co"rt shall
decide the !otion within thirty ('7) days fro! the filin thereof. (**,a)
Art. +*7. #nly the possession ac0"ired and en.oyed in the concept of owner can serve as a title for
ac0"irin do!inion. (**/)
Art. +*1. A possessor in the concept of owner has in his favor the leal pres"!ption that he
possesses with a ."st title and he cannot be oblied to show or prove it. (**3a)
Art. +*2. The possession of real property pres"!es that of the !ovables therein& so lon as it is not
shown or proved that they sho"ld be e)cl"ded. (**5)
Art. +*'. :ach one of the participants of a thin possessed in co!!on shall be dee!ed to have
e)cl"sively possessed the part which !ay be allotted to hi! "pon the division thereof& for the
entire period d"rin which the co1possession lasted. (nterr"ption in the possession of the whole or a
part of a thin possessed in co!!on shall be to the pre."dice of all the possessors. 9owever& in
case of civil interr"ption& the -"les of Co"rt shall apply. (*+7a)
Art. +**. A possessor in ood faith is entitled to the fr"its received before the possession is leally
interr"pted.
6at"ral and ind"strial fr"its are considered received fro! the ti!e they are athered or severed.
Civil fr"its are dee!ed to accr"e daily and belon to the possessor in ood faith in that proportion.
(*+1)
Art. +*+. (f at the ti!e the ood faith ceases& there sho"ld be any nat"ral or ind"strial fr"its& the
possessor shall have a riht to a part of the e)penses of c"ltivation& and to a part of the net harvest&
both in proportion to the ti!e of the possession.
The chares shall be divided on the sa!e basis by the two possessors.
The owner of the thin !ay& sho"ld he so desire& ive the possessor in ood faith the riht to finish
the c"ltivation and atherin of the rowin fr"its& as an inde!nity for his part of the e)penses of
c"ltivation and the net proceeds8 the possessor in ood faith who for any reason whatever sho"ld
ref"se to accept this concession& shall lose the riht to be inde!nified in any other !anner. (*+2a)
Art. +*,. 6ecessary e)penses shall be ref"nded to every possessor8 b"t only the possessor in ood
faith !ay retain the thin "ntil he has been rei!b"rsed therefor.
?sef"l e)penses shall be ref"nded only to the possessor in ood faith with the sa!e riht of
retention& the person who has defeated hi! in the possession havin the option of ref"ndin the
a!o"nt of the e)penses or of payin the increase in val"e which the thin !ay have ac0"ired by
reason thereof. (*+'a)
Art. +*/. (f the "sef"l i!prove!ents can be re!oved witho"t da!ae to the principal thin& the
possessor in ood faith !ay re!ove the!& "nless the person who recovers the possession e)ercises
the option "nder pararaph 2 of the precedin article. (n)
Art. +*3. :)penses for p"re l")"ry or !ere pleas"re shall not be ref"nded to the possessor in ood
faith8 b"t he !ay re!ove the orna!ents with which he has e!bellished the principal thin if it
s"ffers no in."ry thereby& and if his s"ccessor in the possession does not prefer to ref"nd the
a!o"nt e)pended. (*+*)
Art. +*5. The possessor in bad faith shall rei!b"rse the fr"its received and those which the
leiti!ate possessor co"ld have received& and shall have a riht only to the e)penses !entioned in
pararaph 1 of Article +*, and in Article **'. The e)penses inc"rred in i!prove!ents for p"re
l")"ry or !ere pleas"re shall not be ref"nded to the possessor in bad faith& b"t he !ay re!ove the
ob.ects for which s"ch e)penses have been inc"rred& provided that the thin s"ffers no in."ry
thereby& and that the lawf"l possessor does not prefer to retain the! by payin the val"e they !ay
have at the ti!e he enters into possession. (**+a)
Art. ++7. The costs of litiation over the property shall be borne by every possessor. (n)
Art. ++1. (!prove!ents ca"sed by nat"re or ti!e shall always ins"re to the benefit of the person
who has s"cceeded in recoverin possession. (*+,)
Art. ++2. A possessor in ood faith shall not be liable for the deterioration or loss of the thin
possessed& e)cept in cases in which it is proved that he has acted with fra"d"lent intent or
nelience& after the ."dicial s"!!ons.
A possessor in bad faith shall be liable for deterioration or loss in every case& even if ca"sed by a
fort"ito"s event. (*+/a)
Art. ++'. #ne who recovers possession shall not be oblied to pay for i!prove!ents which have
ceased to e)ist at the ti!e he takes possession of the thin. (*+3)
Art. ++*. A present possessor who shows his possession at so!e previo"s ti!e& is pres"!ed to have
held possession also d"rin the inter!ediate period& in the absence of proof to the contrary. (*+5)
Art. +++. A possessor !ay lose his possession<
(1) By the abandon!ent of the thin8
(2) By an assin!ent !ade to another either by onero"s or rat"ito"s title8
(') By the destr"ction or total loss of the thin& or beca"se it oes o"t of co!!erce8
(*) By the possession of another& s"b.ect to the provisions of Article +'/& if the new possession has
lasted loner than one year. B"t the real riht of possession is not lost till after the lapse of ten
years. (*,7a)
Art. ++,. The possession of !ovables is not dee!ed lost so lon as they re!ain "nder the control
of the possessor& even tho"h for the ti!e bein he !ay not know their whereabo"ts. (*,1)
Art. ++/. The possession of i!!ovables and of real rihts is not dee!ed lost& or transferred for
p"rposes of prescription to the pre."dice of third persons& e)cept in accordance with the provisions
of the =ortae Law and the Land -eistration laws. (*,2a)
Art. ++3. Acts relatin to possession& e)ec"ted or areed to by one who possesses a thin belonin
to another as a !ere holder to en.oy or keep it& in any character& do not bind or pre."dice the owner&
"nless he ave said holder e)press a"thority to do s"ch acts& or ratifies the! s"bse0"ently. (*,')
Art. ++5. The possession of !ovable property ac0"ired in ood faith is e0"ivalent to a title.
6evertheless& one who has lost any !ovable or has been "nlawf"lly deprived thereof !ay recover
it fro! the person in possession of the sa!e.
(f the possessor of a !ovable lost or which the owner has been "nlawf"lly deprived& has ac0"ired it
in ood faith at a p"blic sale& the owner cannot obtain its ret"rn witho"t rei!b"rsin the price paid
therefor. (*,*a)
Art. +,7. 2ild ani!als are possessed only while they are "nder one;s control8 do!esticated or
ta!ed ani!als are considered do!estic or ta!e if they retain the habit of ret"rnin to the pre!ises
of the possessor. (*,+)
Art. +,1. #ne who recovers& accordin to law& possession "n."stly lost& shall be dee!ed for all
p"rposes which !ay redo"nd to his benefit& to have en.oyed it witho"t interr"ption. (*,,)

Ti!" VI. # USUFRUCT
CHAPTER $
USUFRUCT IN %ENERAL

Art. +,2. ?s"fr"ct ives a riht to en.oy the property of another with the obliation of preservin
its for! and s"bstance& "nless the title constit"tin it or the law otherwise provides. (*,/)
Art. +,'. ?s"fr"ct is constit"ted by law& by the will of private persons e)pressed in acts inter vivos
or in a last will and testa!ent& and by prescription. (*,3)
Art. +,*. ?s"fr"ct !ay be constit"ted on the whole or a part of the fr"its of the thin& in favor of
one !ore persons& si!"ltaneo"sly or s"ccessively& and in every case fro! or to a certain day&
p"rely or conditionally. (t !ay also be constit"ted on a riht& provided it is not strictly personal or
intrans!issible. (*,5)
Art. +,+. The rihts and obliations of the "s"fr"ct"ary shall be those provided in the title
constit"tin the "s"fr"ct8 in defa"lt of s"ch title& or in case it is deficient& the provisions contained
in the two followin Chapters shall be observed. (*/7)

CHAPTER 2
RI%HTS OF THE USUFRUCTUARY

Art. +,,. The "s"fr"ct"ary shall be entitled to all the nat"ral& ind"strial and civil fr"its of the
property in "s"fr"ct. 2ith respect to hidden treas"re which !ay be fo"nd on the land or tene!ent&
he shall be considered a straner. (*/1)
Art. +,/. 6at"ral or ind"strial fr"its rowin at the ti!e the "s"fr"ct beins& belon to the
"s"fr"ct"ary.
Those rowin at the ti!e the "s"fr"ct ter!inates& belon to the owner.
(n the precedin cases& the "s"fr"ct"ary& at the beinnin of the "s"fr"ct& has no obliation to
ref"nd to the owner any e)penses inc"rred8 b"t the owner shall be oblied to rei!b"rse at the
ter!ination of the "s"fr"ct& fro! the proceeds of the rowin fr"its& the ordinary e)penses of
c"ltivation& for seed& and other si!ilar e)penses inc"rred by the "s"fr"ct"ary.
The provisions of this article shall not pre."dice the rihts of third persons& ac0"ired either at the
beinnin or at the ter!ination of the "s"fr"ct. (*/2)
Art. +,3. (f the "s"fr"ct"ary has leased the lands or tene!ents iven in "s"fr"ct& and the "s"fr"ct
sho"ld e)pire before the ter!ination of the lease& he or his heirs and s"ccessors shall receive only
the proportionate share of the rent that !"st be paid by the lessee. (*/')
Art. +,5. Civil fr"its are dee!ed to accr"e daily& and belon to the "s"fr"ct"ary in proportion to the
ti!e the "s"fr"ct !ay last. (*/*)
Art. +/7. 2henever a "s"fr"ct is constit"ted on the riht to receive a rent or periodical pension&
whether in !oney or in fr"its& or in the interest on bonds or sec"rities payable to bearer& each
pay!ent d"e shall be considered as the proceeds or fr"its of s"ch riht.
2henever it consists in the en.oy!ent of benefits accr"in fro! a participation in any ind"strial or
co!!ercial enterprise& the date of the distrib"tion of which is not fi)ed& s"ch benefits shall have
the sa!e character.
(n either case they shall be distrib"ted as civil fr"its& and shall be applied in the !anner prescribed
in the precedin article. (*/+)
Art. +/1. The "s"fr"ct"ary shall have the riht to en.oy any increase which the thin in "s"fr"ct
!ay ac0"ire thro"h accession& the servit"des established in its favor& and& in eneral& all the
benefits inherent therein. (*/5)
Art. +/2. The "s"fr"ct"ary !ay personally en.oy the thin in "s"fr"ct& lease it to another& or
alienate his riht of "s"fr"ct& even by a rat"ito"s title8 b"t all the contracts he !ay enter into as
s"ch "s"fr"ct"ary shall ter!inate "pon the e)piration of the "s"fr"ct& savin leases of r"ral lands&
which shall be considered as s"bsistin d"rin the aric"lt"ral year. (*37)
Art. +/'. 2henever the "s"fr"ct incl"des thins which& witho"t bein cons"!ed& rad"ally
deteriorate thro"h wear and tear& the "s"fr"ct"ary shall have the riht to !ake "se thereof in
accordance with the p"rpose for which they are intended& and shall not be oblied to ret"rn the! at
the ter!ination of the "s"fr"ct e)cept in their condition at that ti!e8 b"t he shall be oblied to
inde!nify the owner for any deterioration they !ay have s"ffered by reason of his fra"d or
nelience. (*31)
Art. +/*. 2henever the "s"fr"ct incl"des thins which cannot be "sed witho"t bein cons"!ed&
the "s"fr"ct"ary shall have the riht to !ake "se of the! "nder the obliation of payin their
appraised val"e at the ter!ination of the "s"fr"ct& if they were appraised when delivered. (n case
they were not appraised& he shall have the riht to ret"rn at the sa!e 0"antity and 0"ality& or pay
their c"rrent price at the ti!e the "s"fr"ct ceases. (*32)
Art. +/+. The "s"fr"ct"ary of fr"it1bearin trees and shr"bs !ay !ake "se of the dead tr"nks& and
even of those c"t off or "prooted by accident& "nder the obliation to replace the! with new plants.
(*3'a)
Art. +/,. (f in conse0"ence of a cala!ity or e)traordinary event& the trees or shr"bs shall have
disappeared in s"ch considerable n"!ber that it wo"ld not be possible or it wo"ld be too
b"rdenso!e to replace the!& the "s"fr"ct"ary !ay leave the dead& fallen or "prooted tr"nks at the
disposal of the owner& and de!and that the latter re!ove the! and clear the land. (*3*a)
Art. +//. The "s"fr"ct"ary of woodland !ay en.oy all the benefits which it !ay prod"ce accordin
to its nat"re.
(f the woodland is a copse or consists of ti!ber for b"ildin& the "s"fr"ct"ary !ay do s"ch ordinary
c"ttin or fellin as the owner was in the habit of doin& and in defa"lt of this& he !ay do so in
accordance with the c"sto! of the place& as to the !anner& a!o"nt and season.
(n any case the fellin or c"ttin of trees shall be !ade in s"ch !anner as not to pre."dice the
preservation of the land.
(n n"rseries& the "s"fr"ct"ary !ay !ake the necessary thinnins in order that the re!ainin trees
!ay properly row.
2ith the e)ception of the provisions of the precedin pararaphs& the "s"fr"ct"ary cannot c"t down
trees "nless it be to restore or i!prove so!e of the thins in "s"fr"ct& and in s"ch case shall first
infor! the owner of the necessity for the work. (*3+)
Art. +/3. The "s"fr"ct"ary of an action to recover real property or a real riht& or any !ovable
property& has the riht to brin the action and to oblie the owner thereof to ive hi! the a"thority
for this p"rpose and to f"rnish hi! whatever proof he !ay have. (f in conse0"ence of the
enforce!ent of the action he ac0"ires the thin clai!ed& the "s"fr"ct shall be li!ited to the fr"its&
the do!inion re!ainin with the owner. (*3,)
Art. +/5. The "s"fr"ct"ary !ay !ake on the property held in "s"fr"ct s"ch "sef"l i!prove!ents or
e)penses for !ere pleas"re as he !ay dee! proper& provided he does not alter its for! or
s"bstance8 b"t he shall have no riht to be inde!nified therefor. 9e !ay& however& re!ove s"ch
i!prove!ents& sho"ld it be possible to do so witho"t da!ae to the property. (*3/)
Art. +37. The "s"fr"ct"ary !ay set off the i!prove!ents he !ay have !ade on the property
aainst any da!ae to the sa!e. (*33)
Art. +31. The owner of property the "s"fr"ct of which is held by another& !ay alienate it& b"t he
cannot alter its for! or s"bstance& or do anythin thereon which !ay be pre."dicial to the
"s"fr"ct"ary. (*35)
Art. +32. The "s"fr"ct"ary of a part of a thin held in co!!on shall e)ercise all the rihts
pertainin to the owner thereof with respect to the ad!inistration and the collection of fr"its or
interest. @ho"ld the co1ownership cease by reason of the division of the thin held in co!!on& the
"s"fr"ct of the part allotted to the co1owner shall belon to the "s"fr"ct"ary. (*57)

CHAPTER 3
OBLI%ATIONS OF THE USUFRUCTUARY

Art. +3'. The "s"fr"ct"ary& before enterin "pon the en.oy!ent of the property& is oblied<
(1) To !ake& after notice to the owner or his leiti!ate representative& an inventory of all the
property& which shall contain an appraisal of the !ovables and a description of the condition of the
i!!ovables8
(2) To ive sec"rity& bindin hi!self to f"lfill the obliations i!posed "pon hi! in accordance with
this Chapter. (*51)
Art. +3*. The provisions of 6o. 2 of the precedin article shall not apply to the donor who has
reserved the "s"fr"ct of the property donated& or to the parents who are "s"fr"ct"aries of their
children;s property& e)cept when the parents contract a second !arriae. (*52a)
Art. +3+. The "s"fr"ct"ary& whatever !ay be the title of the "s"fr"ct& !ay be e)c"sed fro! the
obliation of !akin an inventory or of ivin sec"rity& when no one will be in."red thereby. (*5')
Art. +3,. @ho"ld the "s"fr"ct"ary fail to ive sec"rity in the cases in which he is bo"nd to ive it&
the owner !ay de!and that the i!!ovables be placed "nder ad!inistration& that the !ovables be
sold& that the p"blic bonds& instr"!ents of credit payable to order or to bearer be converted into
reistered certificates or deposited in a bank or p"blic instit"tion& and that the capital or s"!s in
cash and the proceeds of the sale of the !ovable property be invested in safe sec"rities.
The interest on the proceeds of the sale of the !ovables and that on p"blic sec"rities and bonds&
and the proceeds of the property placed "nder ad!inistration& shall belon to the "s"fr"ct"ary.
A"rther!ore& the owner !ay& if he so prefers& "ntil the "s"fr"ct"ary ives sec"rity or is e)c"sed
fro! so doin& retain in his possession the property in "s"fr"ct as ad!inistrator& s"b.ect to the
obliation to deliver to the "s"fr"ct"ary the net proceeds thereof& after ded"ctin the s"!s which
!ay be areed "pon or ."dicially allowed hi! for s"ch ad!inistration. (*5*)
Art. +3/. (f the "s"fr"ct"ary who has not iven sec"rity clai!s& by virt"e of a pro!ise "nder oath&
the delivery of the f"rnit"re necessary for his "se& and that he and his fa!ily be allowed to live in a
ho"se incl"ded in the "s"fr"ct& the co"rt !ay rant this petition& after d"e consideration of the facts
of the case.
The sa!e r"le shall be observed with respect to i!ple!ents& tools and other !ovable property
necessary for an ind"stry or vocation in which he is enaed.
(f the owner does not wish that certain articles be sold beca"se of their artistic worth or beca"se
they have a senti!ental val"e& he !ay de!and their delivery to hi! "pon his ivin sec"rity for the
pay!ent of the leal interest on their appraised val"e. (*5+)
Art. +33. After the sec"rity has been iven by the "s"fr"ct"ary& he shall have a riht to all the
proceeds and benefits fro! the day on which& in accordance with the title constit"tin the "s"fr"ct&
he sho"ld have co!!enced to receive the!. (*5,)
Art. +35. The "s"fr"ct"ary shall take care of the thins iven in "s"fr"ct as a ood father of a
fa!ily. (*5/)
Art. +57. A "s"fr"ct"ary who alienates or leases his riht of "s"fr"ct shall answer for any da!ae
which the thins in "s"fr"ct !ay s"ffer thro"h the fa"lt or nelience of the person who
s"bstit"tes hi!. (*53)
Art. +51. (f the "s"fr"ct be constit"ted on a flock or herd of livestock& the "s"fr"ct"ary shall be
oblied to replace with the yo"n thereof the ani!als that die each year fro! nat"ral ca"ses& or are
lost d"e to the rapacity of beasts of prey.
(f the ani!als on which the "s"fr"ct is constit"ted sho"ld all perish& witho"t the fa"lt of the
"s"fr"ct"ary& on acco"nt of so!e contaio"s disease or any other "nco!!on event& the
"s"fr"ct"ary shall f"lfill his obliation by deliverin to the owner the re!ains which !ay have
been saved fro! the !isfort"ne.
@ho"ld the herd or flock perish in part& also by accident and witho"t the fa"lt of the "s"fr"ct"ary&
the "s"fr"ct shall contin"e on the part saved.
@ho"ld the "s"fr"ct be on sterile ani!als& it shall be considered& with respect to its effects& as
tho"h constit"ted on f"nible thins. (*55a)
Art. +52. The "s"fr"ct"ary is oblied to !ake the ordinary repairs needed by the thin iven in
"s"fr"ct.
By ordinary repairs are "nderstood s"ch as are re0"ired by the wear and tear d"e to the nat"ral "se
of the thin and are indispensable for its preservation. @ho"ld the "s"fr"ct"ary fail to !ake the!
after de!and by the owner& the latter !ay !ake the! at the e)pense of the "s"fr"ct"ary. (+77)
Art. +5'. :)traordinary repairs shall be at the e)pense of the owner. The "s"fr"ct"ary is oblied to
notify the owner when the need for s"ch repairs is "rent. (+71)
Art. +5*. (f the owner sho"ld !ake the e)traordinary repairs& he shall have a riht to de!and of the
"s"fr"ct"ary the leal interest on the a!o"nt e)pended for the ti!e that the "s"fr"ct lasts.
@ho"ld he not !ake the! when they are indispensable for the preservation of the thin& the
"s"fr"ct"ary !ay !ake the!8 b"t he shall have a riht to de!and of the owner& at the ter!ination
of the "s"fr"ct& the increase in val"e which the i!!ovable !ay have ac0"ired by reason of the
repairs. (+72a)
Art. +5+. The owner !ay constr"ct any works and !ake any i!prove!ents of which the
i!!ovable in "s"fr"ct is s"sceptible& or !ake new plantins thereon if it be r"ral& provided that
s"ch acts do not ca"se a di!in"tion in the val"e of the "s"fr"ct or pre."dice the riht of the
"s"fr"ct"ary. (+7')
Art. +5,. The pay!ent of ann"al chares and ta)es and of those considered as a lien on the fr"its&
shall be at the e)pense of the "s"fr"ct"ary for all the ti!e that the "s"fr"ct lasts. (+7*)
Art. +5/. The ta)es which& d"rin the "s"fr"ct& !ay be i!posed directly on the capital& shall be at
the e)pense of the owner.
(f the latter has paid the!& the "s"fr"ct"ary shall pay hi! the proper interest on the s"!s which
!ay have been paid in that character8 and& if the said s"!s have been advanced by the
"s"fr"ct"ary& he shall recover the a!o"nt thereof at the ter!ination of the "s"fr"ct. (+7+)
Art. +53. (f the "s"fr"ct be constit"ted on the whole of a patri!ony& and if at the ti!e of its
constit"tion the owner has debts& the provisions of Articles /+3 and /+5 relatin to donations shall
be applied& both with respect to the !aintenance of the "s"fr"ct and to the obliation of the
"s"fr"ct"ary to pay s"ch debts.
The sa!e r"le shall be applied in case the owner is oblied& at the ti!e the "s"fr"ct is constit"ted&
to !ake periodical pay!ents& even if there sho"ld be no known capital. (+7,)
Art. +55. The "s"fr"ct"ary !ay clai! any !at"red credits which for! a part of the "s"fr"ct if he
has iven or ives the proper sec"rity. (f he has been e)c"sed fro! ivin sec"rity or has been able
to ive it& or if that iven is not s"fficient& he shall need the a"thori%ation of the owner& or of the
co"rt in defa"lt thereof& to collect s"ch credits.
The "s"fr"ct"ary who has iven sec"rity !ay "se the capital he has collected in any !anner he
!ay dee! proper. The "s"fr"ct"ary who has not iven sec"rity shall invest the said capital at
interest "pon aree!ent with the owner8 in defa"lt of s"ch aree!ent& with ."dicial a"thori%ation8
and& in every case& with sec"rity s"fficient to preserve the interity of the capital in "s"fr"ct. (+7/)
Art. ,77. The "s"fr"ct"ary of a !ortaed i!!ovable shall not be oblied to pay the debt for the
sec"rity of which the !ortae was constit"ted.
@ho"ld the i!!ovable be attached or sold ."dicially for the pay!ent of the debt& the owner shall be
liable to the "s"fr"ct"ary for whatever the latter !ay lose by reason thereof. (+75)
Art. ,71. The "s"fr"ct"ary shall be oblied to notify the owner of any act of a third person& of
which he !ay have knowlede& that !ay be pre."dicial to the rihts of ownership& and he shall be
liable sho"ld he not do so& for da!aes& as if they had been ca"sed thro"h his own fa"lt. (+11)
Art. ,72. The e)penses& costs and liabilities in s"its bro"ht with reard to the "s"fr"ct shall be
borne by the "s"fr"ct"ary. (+12)

CHAPTER )
E*TIN%UISHMENT OF USUFRUCT

Art. ,7'. ?s"fr"ct is e)tin"ished<
(1) By the death of the "s"fr"ct"ary& "nless a contrary intention clearly appears8
(2) By the e)piration of the period for which it was constit"ted& or by the f"lfill!ent of any
resol"tory condition provided in the title creatin the "s"fr"ct8
(') By !erer of the "s"fr"ct and ownership in the sa!e person8
(*) By ren"nciation of the "s"fr"ct"ary8
(+) By the total loss of the thin in "s"fr"ct8
(,) By the ter!ination of the riht of the person constit"tin the "s"fr"ct8
(/) By prescription. (+1'a)
Art. ,7*. (f the thin iven in "s"fr"ct sho"ld be lost only in part& the riht shall contin"e on the
re!ainin part. (+1*)
Art. ,7+. ?s"fr"ct cannot be constit"ted in favor of a town& corporation& or association for !ore
than fifty years. (f it has been constit"ted& and before the e)piration of s"ch period the town is
abandoned& or the corporation or association is dissolved& the "s"fr"ct shall be e)tin"ished by
reason thereof. (+1+a)
Art. ,7,. A "s"fr"ct ranted for the ti!e that !ay elapse before a third person attains a certain ae&
shall s"bsist for the n"!ber of years specified& even if the third person sho"ld die before the period
e)pires& "nless s"ch "s"fr"ct has been e)pressly ranted only in consideration of the e)istence of
s"ch person. (+1,)
Art. ,7/. (f the "s"fr"ct is constit"ted on i!!ovable property of which a b"ildin for!s part& and
the latter sho"ld be destroyed in any !anner whatsoever& the "s"fr"ct"ary shall have a riht to
!ake "se of the land and the !aterials.
The sa!e r"le shall be applied if the "s"fr"ct is constit"ted on a b"ildin only and the sa!e sho"ld
be destroyed. B"t in s"ch a case& if the owner sho"ld wish to constr"ct another b"ildin& he shall
have a riht to occ"py the land and to !ake "se of the !aterials& bein oblied to pay to the
"s"fr"ct"ary& d"rin the contin"ance of the "s"fr"ct& the interest "pon the s"! e0"ivalent to the
val"e of the land and of the !aterials. (+1/)
Art. ,73. (f the "s"fr"ct"ary shares with the owner the ins"rance of the tene!ent iven in "s"fr"ct&
the for!er shall& in case of loss& contin"e in the en.oy!ent of the new b"ildin& sho"ld one be
constr"cted& or shall receive the interest on the ins"rance inde!nity if the owner does not wish to
reb"ild.
@ho"ld the "s"fr"ct"ary have ref"sed to contrib"te to the ins"rance& the owner ins"rin the
tene!ent alone& the latter shall receive the f"ll a!o"nt of the ins"rance inde!nity in case of loss&
savin always the riht ranted to the "s"fr"ct"ary in the precedin article. (+13a)
Art. ,75. @ho"ld the thin in "s"fr"ct be e)propriated for p"blic "se& the owner shall be oblied
either to replace it with another thin of the sa!e val"e and of si!ilar conditions& or to pay the
"s"fr"ct"ary the leal interest on the a!o"nt of the inde!nity for the whole period of the "s"fr"ct.
(f the owner chooses the latter alternative& he shall ive sec"rity for the pay!ent of the interest.
(+15)
Art. ,17. A "s"fr"ct is not e)tin"ished by bad "se of the thin in "s"fr"ct8 b"t if the ab"se sho"ld
ca"se considerable in."ry to the owner& the latter !ay de!and that the thin be delivered to hi!&
bindin hi!self to pay ann"ally to the "s"fr"ct"ary the net proceeds of the sa!e& after ded"ctin
the e)penses and the co!pensation which !ay be allowed hi! for its ad!inistration. (+27)
Art. ,11. A "s"fr"ct constit"ted in favor of several persons livin at the ti!e of its constit"tion shall
not be e)tin"ished "ntil death of the last s"rvivor. (+21)
Art. ,12. ?pon the ter!ination of the "s"fr"ct& the thin in "s"fr"ct shall be delivered to the owner&
witho"t pre."dice to the riht of retention pertainin to the "s"fr"ct"ary or his heirs for ta)es and
e)traordinary e)penses which sho"ld be rei!b"rsed. After the delivery has been !ade& the sec"rity
or !ortae shall be cancelled. (+22a)
Ti!" VII. # EASEMENTS OF SERVITUDES
CHAPTER $
EASEMENTS IN %ENERAL

@:CT(#6 1. 1 Different Ginds of :ase!ents

Art. ,1'. An ease!ent or servit"de is an enc"!brance i!posed "pon an i!!ovable for the benefit
of another i!!ovable belonin to a different owner.
The i!!ovable in favor of which the ease!ent is established is called the do!inant estate8 that
which is s"b.ect thereto& the servient estate. (+'7)
Art. ,1*. @ervit"des !ay also be established for the benefit of a co!!"nity& or of one or !ore
persons to who! the enc"!bered estate does not belon. (+'1)
Art. ,1+. :ase!ents !ay be contin"o"s or discontin"o"s& apparent or nonapparent.
Contin"o"s ease!ents are those the "se of which is or !ay be incessant& witho"t the intervention
of any act of !an.
Discontin"o"s ease!ents are those which are "sed at intervals and depend "pon the acts of !an.
Apparent ease!ents are those which are !ade known and are contin"ally kept in view by e)ternal
sins that reveal the "se and en.oy!ent of the sa!e.
6onapparent ease!ents are those which show no e)ternal indication of their e)istence. (+'2)
Art. ,1,. :ase!ents are also positive or neative.
A positive ease!ent is one which i!poses "pon the owner of the servient estate the obliation of
allowin so!ethin to be done or of doin it hi!self& and a neative ease!ent& that which prohibits
the owner of the servient estate fro! doin so!ethin which he co"ld lawf"lly do if the ease!ent
did not e)ist. (+'')
Art. ,1/. :ase!ents are inseparable fro! the estate to which they actively or passively belon.
(+'*)
Art. ,13. :ase!ents are indivisible. (f the servient estate is divided between two or !ore persons&
the ease!ent is not !odified& and each of the! !"st bear it on the part which corresponds to hi!.
(f it is the do!inant estate that is divided between two or !ore persons& each of the! !ay "se the
ease!ent in its entirety& witho"t chanin the place of its "se& or !akin it !ore b"rdenso!e in
any other way. (+'+)
Art. ,15. :ase!ents are established either by law or by the will of the owners. The for!er are
called leal and the latter vol"ntary ease!ents. (+',)

@:CT(#6 2. 1 =odes of Ac0"irin :ase!ents

Art. ,27. Contin"o"s and apparent ease!ents are ac0"ired either by virt"e of a title or by
prescription of ten years. (+'/a)
Art. ,21. (n order to ac0"ire by prescription the ease!ents referred to in the precedin article& the
ti!e of possession shall be co!p"ted th"s< in positive ease!ents& fro! the day on which the owner
of the do!inant estate& or the person who !ay have !ade "se of the ease!ent& co!!enced to
e)ercise it "pon the servient estate8 and in neative ease!ents& fro! the day on which the owner of
the do!inant estate forbade& by an instr"!ent acknowleded before a notary p"blic& the owner of
the servient estate& fro! e)ec"tin an act which wo"ld be lawf"l witho"t the ease!ent. (+'3a)
Art. ,22. Contin"o"s nonapparent ease!ents& and discontin"o"s ones& whether apparent or not&
!ay be ac0"ired only by virt"e of a title. (+'5)
Art. ,2'. The absence of a doc"!ent or proof showin the oriin of an ease!ent which cannot be
ac0"ired by prescription !ay be c"red by a deed of reconition by the owner of the servient estate
or by a final ."d!ent. (+*7a)
Art. ,2*. The e)istence of an apparent sin of ease!ent between two estates& established or
!aintained by the owner of both& shall be considered& sho"ld either of the! be alienated& as a title
in order that the ease!ent !ay contin"e actively and passively& "nless& at the ti!e the ownership of
the two estates is divided& the contrary sho"ld be provided in the title of conveyance of either of
the!& or the sin aforesaid sho"ld be re!oved before the e)ec"tion of the deed. This provision
shall also apply in case of the division of a thin owned in co!!on by two or !ore persons. (+*1a)
Art. ,2+. ?pon the establish!ent of an ease!ent& all the rihts necessary for its "se are considered
ranted. (+*2)
Art. ,2,. The owner of the do!inant estate cannot "se the ease!ent e)cept for the benefit of the
i!!ovable oriinally conte!plated. 6either can he e)ercise the ease!ent in any other !anner than
that previo"sly established. (n)

@:CT(#6 '. 1 -ihts and #bliations
of the #wners of the Do!inant and @ervient :states

Art. ,2/. The owner of the do!inant estate !ay !ake& at his own e)pense& on the servient state any
works necessary for the "se and preservation of the servit"de& b"t witho"t alterin it or renderin it
!ore b"rdenso!e.
Aor this p"rpose he shall notify the owner of the servient estate& and shall choose the !ost
convenient ti!e and !anner so as to ca"se the least inconvenience to the owner of the servient
estate. (+*'a)
Art. ,23. @ho"ld there be several do!inant estates& the owners of all of the! shall be oblied to
contrib"te to the e)penses referred to in the precedin article& in proportion to the benefits which
each !ay derive fro! the work. Any one who does not wish to contrib"te !ay e)e!pt hi!self by
reno"ncin the ease!ent for the benefit of the others.
(f the owner of the servient estate sho"ld !ake "se of the ease!ent in any !anner whatsoever& he
shall also be oblied to contrib"te to the e)penses in the proportion stated& savin an aree!ent to
the contrary. (+**)
Art. ,25. The owner of the servient estate cannot i!pair& in any !anner whatsoever& the "se of the
servit"de.
6evertheless& if by reason of the place oriinally assined& or of the !anner established for the "se
of the ease!ent& the sa!e sho"ld beco!e very inconvenient to the owner of the servient estate& or
sho"ld prevent hi! fro! !akin any i!portant works& repairs or i!prove!ents thereon& it !ay be
chaned at his e)pense& provided he offers another place or !anner e0"ally convenient and in s"ch
a way that no in."ry is ca"sed thereby to the owner of the do!inant estate or to those who !ay
have a riht to the "se of the ease!ent. (+*+)
Art. ,'7. The owner of the servient estate retains the ownership of the portion on which the
ease!ent is established& and !ay "se the sa!e in s"ch a !anner as not to affect the e)ercise of the
ease!ent. (n)

@:CT(#6 *. 1 =odes of :)tin"ish!ent of :ase!ents
Art. ,'1. :ase!ents are e)tin"ished<
(1) By !erer in the sa!e person of the ownership of the do!inant and servient estates8
(2) By non"ser for ten years8 with respect to discontin"o"s ease!ents& this period shall be
co!p"ted fro! the day on which they ceased to be "sed8 and& with respect to contin"o"s
ease!ents& fro! the day on which an act contrary to the sa!e took place8
(') 2hen either or both of the estates fall into s"ch condition that the ease!ent cannot be "sed8 b"t
it shall revive if the s"bse0"ent condition of the estates or either of the! sho"ld aain per!it its
"se& "nless when the "se beco!es possible& s"fficient ti!e for prescription has elapsed& in
accordance with the provisions of the precedin n"!ber8
(*) By the e)piration of the ter! or the f"lfill!ent of the condition& if the ease!ent is te!porary or
conditional8
(+) By the ren"nciation of the owner of the do!inant estate8
(,) By the rede!ption areed "pon between the owners of the do!inant and servient estates.
(+*,a)
Art. ,'2. The for! or !anner of "sin the ease!ent !ay prescribe as the ease!ent itself& and in
the sa!e way. (+*/a)
Art. ,''. (f the do!inant estate belons to several persons in co!!on& the "se of the ease!ent by
any one of the! prevents prescription with respect to the others. (+*3)

CHAPTER 2
LE%AL EASEMENTS

@:CT(#6 1. 1 $eneral Provisions

Art. ,'*. :ase!ents i!posed by law have for their ob.ect either p"blic "se or the interest of private
persons. (+*5)
Art. ,'+. All !atters concernin ease!ents established for p"blic or co!!"nal "se shall be
overned by the special laws and re"lations relatin thereto& and& in the absence thereof& by the
provisions of this Title. (++7)
Art. ,',. :ase!ents established by law in the interest of private persons or for private "se shall be
overned by the provisions of this Title& witho"t pre."dice to the provisions of eneral or local laws
and ordinances for the eneral welfare.
These ease!ents !ay be !odified by aree!ent of the interested parties& whenever the law does
not prohibit it or no in."ry is s"ffered by a third person. (++1a)

@:CT(#6 2. 1 :ase!ents -elatin to 2aters

Art. ,'/. Lower estates are oblied to receive the waters which nat"rally and witho"t the
intervention of !an descend fro! the hiher estates& as well as the stones or earth which they carry
with the!.
The owner of the lower estate cannot constr"ct works which will i!pede this ease!ent8 neither can
the owner of the hiher estate !ake works which will increase the b"rden. (++2)
Art. ,'3. The banks of rivers and strea!s& even in case they are of private ownership& are s"b.ect
thro"ho"t their entire lenth and within a %one of three !eters alon their !arins& to the
ease!ent of p"blic "se in the eneral interest of naviation& floatae& fishin and salvae.
:states ad.oinin the banks of naviable or floatable rivers are& f"rther!ore& s"b.ect to the
ease!ent of towpath for the e)cl"sive service of river naviation and floatae.
(f it be necessary for s"ch p"rpose to occ"py lands of private ownership& the proper inde!nity shall
first be paid. (++'a)
Art. ,'5. 2henever for the diversion or takin of water fro! a river or brook& or for the "se of any
other contin"o"s or discontin"o"s strea!& it sho"ld be necessary to b"ild a da!& and the person
who is to constr"ct it is not the owner of the banks& or lands which !"st s"pport it& he !ay
establish the ease!ent of ab"t!ent of a da!& after pay!ent of the proper inde!nity. (++*)
Art. ,*7. Co!p"lsory ease!ents for drawin water or for waterin ani!als can be i!posed only
for reasons of p"blic "se in favor of a town or villae& after pay!ent of the proper inde!nity. (+++)
Art. ,*1. :ase!ents for drawin water and for waterin ani!als carry with the! the obliation of
the owners of the servient estates to allow passae to persons and ani!als to the place where s"ch
ease!ents are to be "sed& and the inde!nity shall incl"de this service. (++,)
Art. ,*2. Any person who !ay wish to "se "pon his own estate any water of which he can dispose
shall have the riht to !ake it flow thro"h the intervenin estates& with the obliation to
inde!nify their owners& as well as the owners of the lower estates "pon which the waters !ay filter
or descend. (++/)
Art. ,*'. #ne desirin to !ake "se of the riht ranted in the precedin article is oblied<
(1) To prove that he can dispose of the water and that it is s"fficient for the "se for which it is
intended8
(2) To show that the proposed riht of way is the !ost convenient and the least onero"s to third
persons8
(') To inde!nify the owner of the servient estate in the !anner deter!ined by the laws and
re"lations. (++3)
Art. ,**. The ease!ent of a0"ed"ct for private interest cannot be i!posed on b"ildins& co"rtyards&
anne)es& or o"tho"ses& or on orchards or ardens already e)istin. (++5)
Art. ,*+. The ease!ent of a0"ed"ct does not prevent the owner of the servient estate fro! closin
or fencin it& or fro! b"ildin over the a0"ed"ct in s"ch !anner as not to ca"se the latter any
da!ae& or render necessary repairs and cleanins i!possible. (+,7)
Art. ,*,. Aor leal p"rposes& the ease!ent of a0"ed"ct shall be considered as contin"o"s and
apparent& even tho"h the flow of the water !ay not be contin"o"s& or its "se depends "pon the
needs of the do!inant estate& or "pon a sched"le of alternate days or ho"rs. (+,1)
Art. ,*/. #ne who for the p"rpose of irriatin or i!provin his estate& has to constr"ct a stop lock
or sl"ice ate in the bed of the strea! fro! which the water is to be taken& !ay de!and that the
owners of the banks per!it its constr"ction& after pay!ent of da!aes& incl"din those ca"sed by
the new ease!ent to s"ch owners and to the other irriators. (+,2)
Art. ,*3. The establish!ent& e)tent& for! and conditions of the servit"des of waters& to which this
section refers& shall be overned by the special laws relatin thereto insofar as no provision therefor
is !ade in this Code. (+,'a)

@:CT(#6 '. 1 :ase!ent of -iht of 2ay

Art. ,*5. The owner& or any person who by virt"e of a real riht !ay c"ltivate or "se any
i!!ovable& which is s"rro"nded by other i!!ovables pertainin to other persons and witho"t
ade0"ate o"tlet to a p"blic hihway& is entitled to de!and a riht of way thro"h the neihborin
estates& after pay!ent of the proper inde!nity.
@ho"ld this ease!ent be established in s"ch a !anner that its "se !ay be contin"o"s for all the
needs of the do!inant estate& establishin a per!anent passae& the inde!nity shall consist of the
val"e of the land occ"pied and the a!o"nt of the da!ae ca"sed to the servient estate.
(n case the riht of way is li!ited to the necessary passae for the c"ltivation of the estate
s"rro"nded by others and for the atherin of its crops thro"h the servient estate witho"t a
per!anent way& the inde!nity shall consist in the pay!ent of the da!ae ca"sed by s"ch
enc"!brance.
This ease!ent is not co!p"lsory if the isolation of the i!!ovable is d"e to the proprietor;s own
acts. (+,*a)
Art. ,+7. The ease!ent of riht of way shall be established at the point least pre."dicial to the
servient estate& and& insofar as consistent with this r"le& where the distance fro! the do!inant
estate to a p"blic hihway !ay be the shortest. (+,+)
Art. ,+1. The width of the ease!ent of riht of way shall be that which is s"fficient for the needs of
the do!inant estate& and !ay accordinly be chaned fro! ti!e to ti!e. (+,,a)
Art. ,+2. 2henever a piece of land ac0"ired by sale& e)chane or partition& is s"rro"nded by other
estates of the vendor& e)chaner& or co1owner& he shall be oblied to rant a riht of way witho"t
inde!nity.
(n case of a si!ple donation& the donor shall be inde!nified by the donee for the establish!ent of
the riht of way. (+,/a)
Art. ,+'. (n the case of the precedin article& if it is the land of the rantor that beco!es isolated& he
!ay de!and a riht of way after payin a inde!nity. 9owever& the donor shall not be liable for
inde!nity. (n)
Art. ,+*. (f the riht of way is per!anent& the necessary repairs shall be !ade by the owner of the
do!inant estate. A proportionate share of the ta)es shall be rei!b"rsed by said owner to the
proprietor of the servient estate. (n)
Art. ,++. (f the riht of way ranted to a s"rro"nded estate ceases to be necessary beca"se its owner
has .oined it to another ab"ttin on a p"blic road& the owner of the servient estate !ay de!and that
the ease!ent be e)tin"ished& ret"rnin what he !ay have received by way of inde!nity. The
interest on the inde!nity shall be dee!ed to be in pay!ent of rent for the "se of the ease!ent.
The sa!e r"le shall be applied in case a new road is opened ivin access to the isolated estate.
(n both cases& the p"blic hihway !"st s"bstantially !eet the needs of the do!inant estate in order
that the ease!ent !ay be e)tin"ished. (+,3a)
Art. ,+,. (f it be indispensable for the constr"ction& repair& i!prove!ent& alteration or
bea"tification of a b"ildin& to carry !aterials thro"h the estate of another& or to raise therein
scaffoldin or other ob.ects necessary for the work& the owner of s"ch estate shall be oblied to
per!it the act& after receivin pay!ent of the proper inde!nity for the da!ae ca"sed hi!. (+,5a)
Art. ,+/. :ase!ents of the riht of way for the passae of livestock known as ani!al path& ani!al
trail or any other& and those for waterin places& restin places and ani!al folds& shall be overned
by the ordinances and re"lations relatin thereto& and& in the absence thereof& by the "saes and
c"sto!s of the place.
2itho"t pre."dice to rihts leally ac0"ired& the ani!al path shall not e)ceed in any case the width
of /+ !eters& and the ani!al trail that of '/ !eters and +7 centi!eters.
2henever it is necessary to establish a co!p"lsory ease!ent of the riht of way or for a waterin
place for ani!als& the provisions of this @ection and those of Articles ,*7 and ,*1 shall be
observed. (n this case the width shall not e)ceed 17 !eters. (+/7a)

@:CT(#6 *. 1 :ase!ent of Party 2all

Art. ,+3. The ease!ent of party wall shall be overned by the provisions of this Title& by the local
ordinances and c"sto!s insofar as they do not conflict with the sa!e& and by the r"les of co1
ownership. (+/1a)
Art. ,+5. The e)istence of an ease!ent of party wall is pres"!ed& "nless there is a title& or e)terior
sin& or proof to the contrary<
(1) (n dividin walls of ad.oinin b"ildins "p to the point of co!!on elevation8
(2) (n dividin walls of ardens or yards sit"ated in cities& towns& or in r"ral co!!"nities8
(') (n fences& walls and live hedes dividin r"ral lands. (+/2)
Art. ,,7. (t is "nderstood that there is an e)terior sin& contrary to the ease!ent of party wall<
(1) 2henever in the dividin wall of b"ildins there is a window or openin8
(2) 2henever the dividin wall is& on one side& straiht and pl"!b on all its face!ent& and on the
other& it has si!ilar conditions on the "pper part& b"t the lower part slants or pro.ects o"tward8
(') 2henever the entire wall is b"ilt within the bo"ndaries of one of the estates8
(*) 2henever the dividin wall bears the b"rden of the bindin bea!s& floors and roof fra!e of one
of the b"ildins& b"t not those of the others8
(+) 2henever the dividin wall between co"rtyards& ardens& and tene!ents is constr"cted in s"ch
a way that the copin sheds the water "pon only one of the estates8
(,) 2henever the dividin wall& bein b"ilt of !asonry& has steppin stones& which at certain
intervals pro.ect fro! the s"rface on one side only& b"t not on the other8
(/) 2henever lands inclosed by fences or live hedes ad.oin others which are not inclosed.
(n all these cases& the ownership of the walls& fences or hedes shall be dee!ed to belon
e)cl"sively to the owner of the property or tene!ent which has in its favor the pres"!ption based
on any one of these sins. (+/')
Art. ,,1. Ditches or drains opened between two estates are also pres"!ed as co!!on to both& if
there is no title or sin showin the contrary.
There is a sin contrary to the part1ownership whenever the earth or dirt re!oved to open the ditch
or to clean it is only on one side thereof& in which case the ownership of the ditch shall belon
e)cl"sively to the owner of the land havin this e)terior sin in its favor. (+/*)
Art. ,,2. The cost of repairs and constr"ction of party walls and the !aintenance of fences& live
hedes& ditches& and drains owned in co!!on& shall be borne by all the owners of the lands or
tene!ents havin the party wall in their favor& in proportion to the riht of each.
6evertheless& any owner !ay e)e!pt hi!self fro! contrib"tin to this chare by reno"ncin his
part1ownership& e)cept when the party wall s"pports a b"ildin belonin to hi!. (+/+)
Art. ,,'. (f the owner of a b"ildin& s"pported by a party wall desires to de!olish the b"ildin& he
!ay also reno"nce his part1ownership of the wall& b"t the cost of all repairs and work necessary to
prevent any da!ae which the de!olition !ay ca"se to the party wall& on this occasion only& shall
be borne by hi!. (+/,)
Art. ,,*. :very owner !ay increase the heiht of the party wall& doin at his own e)pense and
payin for any da!ae which !ay be ca"sed by the work& even tho"h s"ch da!ae be te!porary.
The e)penses of !aintainin the wall in the part newly raised or deepened at its fo"ndation shall
also be paid for by hi!8 and& in addition& the inde!nity for the increased e)penses which !ay be
necessary for the preservation of the party wall by reason of the reater heiht or depth which has
been iven it.
(f the party wall cannot bear the increased heiht& the owner desirin to raise it shall be oblied to
reconstr"ct it at his own e)pense and& if for this p"rpose it be necessary to !ake it thicker& he shall
ive the space re0"ired fro! his own land. (+//)
Art. ,,+. The other owners who have not contrib"ted in ivin increased heiht& depth or thickness
to the wall !ay& nevertheless& ac0"ire the riht of part1ownership therein& by payin proportionally
the val"e of the work at the ti!e of the ac0"isition and of the land "sed for its increased thickness.
(+/3a)
Art. ,,,. :very part1owner of a party wall !ay "se it in proportion to the riht he !ay have in the
co1ownership& witho"t interferin with the co!!on and respective "ses by the other co1owners.
(+/5a)

@:CT(#6 +. 1 :ase!ent of Liht and >iew

Art. ,,/. 6o part1owner !ay& witho"t the consent of the others& open thro"h the party wall any
window or apert"re of any kind. (+37)
Art. ,,3. The period of prescription for the ac0"isition of an ease!ent of liht and view shall be
co"nted<
(1) Aro! the ti!e of the openin of the window& if it is thro"h a party wall8 or
(2) Aro! the ti!e of the for!al prohibition "pon the proprietor of the ad.oinin land or tene!ent& if
the window is thro"h a wall on the do!inant estate. (n)
Art. ,,5. 2hen the distances in Article ,/7 are not observed& the owner of a wall which is not party
wall& ad.oinin a tene!ent or piece of land belonin to another& can !ake in it openins to ad!it
liht at the heiht of the ceilin .oints or i!!ediately "nder the ceilin& and of the si%e of thirty
centi!eters s0"are& and& in every case& with an iron ratin i!bedded in the wall and with a wire
screen.
6evertheless& the owner of the tene!ent or property ad.oinin the wall in which the openins are
!ade can close the! sho"ld he ac0"ire part1ownership thereof& if there be no stip"lation to the
contrary.
9e can also obstr"ct the! by constr"ctin a b"ildin on his land or by raisin a wall thereon
conti"o"s to that havin s"ch openins& "nless an ease!ent of liht has been ac0"ired. (+31a)
Art. ,/7. 6o windows& apert"res& balconies& or other si!ilar pro.ections which afford a direct view
"pon or towards an ad.oinin land or tene!ent can be !ade& witho"t leavin a distance of two
!eters between the wall in which they are !ade and s"ch conti"o"s property.
6either can side or obli0"e views "pon or towards s"ch conter!ino"s property be had& "nless there
be a distance of si)ty centi!eters.
The nonobservance of these distances does not ive rise to prescription. (+32a)
Art. ,/1. The distance referred to in the precedin article shall be !eas"red in cases of direct views
fro! the o"ter line of the wall when the openins do not pro.ect& fro! the o"ter line of the latter
when they do& and in cases of obli0"e view fro! the dividin line between the two properties.
(+3')
Art. ,/2. The provisions of Article ,/7 are not applicable to b"ildins separated by a p"blic way or
alley& which is not less than three !eters wide& s"b.ect to special re"lations and local ordinances.
(+3*a)
Art. ,/'. 2henever by any title a riht has been ac0"ired to have direct views& balconies or
belvederes overlookin an ad.oinin property& the owner of the servient estate cannot b"ild thereon
at less than a distance of three !eters to be !eas"red in the !anner provided in Article ,/1. Any
stip"lation per!ittin distances less than those prescribed in Article ,/7 is void. (+3+a)

@:CT(#6 ,. 1 Drainae of B"ildins

Art. ,/*. The owner of a b"ildin shall be oblied to constr"ct its roof or coverin in s"ch !anner
that the rain water shall fall on his own land or on a street or p"blic place& and not on the land of his
neihbor& even tho"h the ad.acent land !ay belon to two or !ore persons& one of who! is the
owner of the roof. :ven if it sho"ld fall on his own land& the owner shall be oblied to collect the
water in s"ch a way as not to ca"se da!ae to the ad.acent land or tene!ent. (+3,a)
Art. ,/+. The owner of a tene!ent or a piece of land& s"b.ect to the ease!ent of receivin water
fallin fro! roofs& !ay b"ild in s"ch !anner as to receive the water "pon his own roof or ive it
another o"tlet in accordance with local ordinances or c"sto!s& and in s"ch a way as not to ca"se
any n"isance or da!ae whatever to the do!inant estate. (+3/)
Art. ,/,. 2henever the yard or co"rt of a ho"se is s"rro"nded by other ho"ses& and it is not
possible to ive an o"tlet thro"h the ho"se itself to the rain water collected thereon& the
establish!ent of an ease!ent of drainae can be de!anded& ivin an o"tlet to the water at the
point of the conti"o"s lands or tene!ents where its eress !ay be easiest& and establishin a
cond"it for the drainae in s"ch !anner as to ca"se the least da!ae to the servient estate& after
pay!ent of the property inde!nity. (+3')

@:CT(#6 /. 1 (nter!ediate Distances
and 2orks for Certain Constr"ctions and Plantins

Art. ,//. 6o constr"ctions can be b"ilt or plantins !ade near fortified places or fortresses witho"t
co!pliance with the conditions re0"ired in special laws& ordinances& and re"lations relatin
thereto. (+35)
Art. ,/3. 6o person shall b"ild any a0"ed"ct& well& sewer& f"rnace& fore& chi!ney& stable&
depository of corrosive s"bstances& !achinery& or factory which by reason of its nat"re or prod"cts
is danero"s or no)io"s& witho"t observin the distances prescribed by the re"lations and c"sto!s
of the place& and witho"t !akin the necessary protective works& s"b.ect& in reard to the !anner
thereof& to the conditions prescribed by s"ch re"lations. These prohibitions cannot be altered or
reno"nced by stip"lation on the part of the ad.oinin proprietors.
(n the absence of re"lations& s"ch preca"tions shall be taken as !ay be considered necessary& in
order to avoid any da!ae to the neihborin lands or tene!ents. (+57a)
Art. ,/5. 6o trees shall be planted near a tene!ent or piece of land belonin to another e)cept at
the distance a"thori%ed by the ordinances or c"sto!s of the place& and& in the absence thereof& at a
distance of at least two !eters fro! the dividin line of the estates if tall trees are planted and at a
distance of at least fifty centi!eters if shr"bs or s!all trees are planted.
:very landowner shall have the riht to de!and that trees hereafter planted at a shorter distance
fro! his land or tene!ent be "prooted.
The provisions of this article also apply to trees which have rown spontaneo"sly. (+51a)
Art. ,37. (f the branches of any tree sho"ld e)tend over a neihborin estate& tene!ent& arden or
yard& the owner of the latter shall have the riht to de!and that they be c"t off insofar as they !ay
spread over his property& and& if it be the roots of a neihborin tree which sho"ld penetrate into the
land of another& the latter !ay c"t the! off hi!self within his property. (+52)
Art. ,31. Ar"its nat"rally fallin "pon ad.acent land belon to the owner of said land. (n)

@:CT(#6 3. 1 :ase!ent Aainst 6"isance (n)

Art. ,32. :very b"ildin or piece of land is s"b.ect to the ease!ent which prohibits the proprietor
or possessor fro! co!!ittin n"isance thro"h noise& .arrin& offensive odor& s!oke& heat& d"st&
water& lare and other ca"ses.
Art. ,3'. @"b.ect to %onin& health& police and other laws and re"lations& factories and shops !ay
be !aintained provided the least possible annoyance is ca"sed to the neihborhood.

@:CT(#6 5. 1 Lateral and @"b.acent @"pport (n)

@ec. ,3*. 6o proprietor shall !ake s"ch e)cavations "pon his land as to deprive any ad.acent land
or b"ildin of s"fficient lateral or s"b.acent s"pport.
Art. ,3+. Any stip"lation or testa!entary provision allowin e)cavations that ca"se daner to an
ad.acent land or b"ildin shall be void.
Art. ,3,. The leal ease!ent of lateral and s"b.acent s"pport is not only for b"ildins standin at
the ti!e the e)cavations are !ade b"t also for constr"ctions that !ay be erected.
Art. ,3/. Any proprietor intendin to !ake any e)cavation conte!plated in the three precedin
articles shall notify all owners of ad.acent lands.

CHAPTER 3
VOLUNTARY EASEMENTS

Art. ,33. :very owner of a tene!ent or piece of land !ay establish thereon the ease!ents which he
!ay dee! s"itable& and in the !anner and for! which he !ay dee! best& provided he does not
contravene the laws& p"blic policy or p"blic order. (+5*)
Art. ,35. The owner of a tene!ent or piece of land& the "s"fr"ct of which belons to another& !ay
i!pose thereon& witho"t the consent of the "s"fr"ct"ary& any servit"des which will not in."re the
riht of "s"fr"ct. (+5+)
Art. ,57. 2henever the naked ownership of a tene!ent or piece of land belons to one person and
the beneficial ownership to another& no perpet"al vol"ntary ease!ent !ay be established thereon
witho"t the consent of both owners. (+5,)
Art. ,51. (n order to i!pose an ease!ent on an "ndivided tene!ent& or piece of land& the consent of
all the co1owners shall be re0"ired.
The consent iven by so!e only& !"st be held in abeyance "ntil the last one of all the co1owners
shall have e)pressed his confor!ity.
B"t the consent iven by one of the co1owners separately fro! the others shall bind the rantor and
his s"ccessors not to prevent the e)ercise of the riht ranted. (+5/a)
Art. ,52. The title and& in a proper case& the possession of an ease!ent ac0"ired by prescription
shall deter!ine the rihts of the do!inant estate and the obliations of the servient estate. (n
defa"lt thereof& the ease!ent shall be overned by s"ch provisions of this Title as are applicable
thereto. (+53)
Art. ,5'. (f the owner of the servient estate sho"ld have bo"nd hi!self& "pon the establish!ent of
the ease!ent& to bear the cost of the work re0"ired for the "se and preservation thereof& he !ay free
hi!self fro! this obliation by reno"ncin his property to the owner of the do!inant estate. (+55)

Title >(((. 1 6?(@A6C: (n)

Art. ,5*. A n"isance is any act& o!ission& establish!ent& b"siness& condition of property& or
anythin else which<
(1) (n."res or endaners the health or safety of others8 or
(2) Annoys or offends the senses8 or
(') @hocks& defies or disreards decency or !orality8 or
(*) #bstr"cts or interferes with the free passae of any p"blic hihway or street& or any body of
water8 or
(+) 9inders or i!pairs the "se of property.
Art. ,5+. 6"isance is either p"blic or private. A p"blic n"isance affects a co!!"nity or
neihborhood or any considerable n"!ber of persons& altho"h the e)tent of the annoyance& daner
or da!ae "pon individ"als !ay be "ne0"al. A private n"isance is one that is not incl"ded in the
foreoin definition.
Art. ,5,. :very s"ccessive owner or possessor of property who fails or ref"ses to abate a n"isance
in that property started by a for!er owner or possessor is liable therefor in the sa!e !anner as the
one who created it.
Art. ,5/. The abate!ent of a n"isance does not precl"de the riht of any person in."red to recover
da!aes for its past e)istence.
Art. ,53. Lapse of ti!e cannot leali%e any n"isance& whether p"blic or private.
Art. ,55. The re!edies aainst a p"blic n"isance are<
(1) A prosec"tion "nder the Penal Code or any local ordinance< or
(2) A civil action8 or
(') Abate!ent& witho"t ."dicial proceedins.
Art. /77. The district health officer shall take care that one or all of the re!edies aainst a p"blic
n"isance are availed of.
Art. /71. (f a civil action is bro"ht by reason of the !aintenance of a p"blic n"isance& s"ch action
shall be co!!enced by the city or !"nicipal !ayor.
Art. /72. The district health officer shall deter!ine whether or not abate!ent& witho"t ."dicial
proceedins& is the best re!edy aainst a p"blic n"isance.
Art. /7'. A private person !ay file an action on acco"nt of a p"blic n"isance& if it is specially
in."rio"s to hi!self.
Art. /7*. Any private person !ay abate a p"blic n"isance which is specially in."rio"s to hi! by
re!ovin& or if necessary& by destroyin the thin which constit"tes the sa!e& witho"t co!!ittin
a breach of the peace& or doin "nnecessary in."ry. B"t it is necessary<
(1) That de!and be first !ade "pon the owner or possessor of the property to abate the n"isance8
(2) That s"ch de!and has been re.ected8
(') That the abate!ent be approved by the district health officer and e)ec"ted with the assistance
of the local police8 and
(*) That the val"e of the destr"ction does not e)ceed three tho"sand pesos.
Art. /7+. The re!edies aainst a private n"isance are<
(1) A civil action8 or
(2) Abate!ent& witho"t ."dicial proceedins.
Art. /7,. Any person in."red by a private n"isance !ay abate it by re!ovin& or if necessary& by
destroyin the thin which constit"tes the n"isance& witho"t co!!ittin a breach of the peace or
doin "nnecessary in."ry. 9owever& it is indispensable that the proced"re for e)tra."dicial
abate!ent of a p"blic n"isance by a private person be followed.
Art. /7/. A private person or a p"blic official e)tra."dicially abatin a n"isance shall be liable for
da!aes<
(1) (f he ca"ses "nnecessary in."ry8 or
(2) (f an alleed n"isance is later declared by the co"rts to be not a real n"isance.
Title (E. 1 -:$(@T-F #A P-#P:-TF
Art. /73. The -eistry of Property has for its ob.ect the inscription or annotation of acts and
contracts relatin to the ownership and other rihts over i!!ovable property. (,7+)
Art. /75. The titles of ownership& or of other rihts over i!!ovable property& which are not d"ly
inscribed or annotated in the -eistry of Property shall not pre."dice third persons. (,7,)
Art. /17. The books in the -eistry of Property shall be p"blic for those who have a known interest
in ascertainin the stat"s of the i!!ovables or real rihts annotated or inscribed therein. (,7/)
Art. /11. Aor deter!inin what titles are s"b.ect to inscription or annotation& as well as the for!&
effects& and cancellation of inscriptions and annotations& the !anner of keepin the books in the
-eistry& and the val"e of the entries contained in said books& the provisions of the =ortae Law&
the Land -eistration Act& and other special laws shall overn. (,73a)
REPUBLIC ACT NO. 386
AN ACT TO ORDAIN AND INSTITUTE
THE CIVIL CODE OF THE PHILIPPINES
BOOK III
DIFFERENT MODES OF AC(UIRIN% OWNERSHIP

PRELIMINARY PROVISION

Art. /12. #wnership is ac0"ired by occ"pation and by intellect"al creation.
#wnership and other real rihts over property are ac0"ired and trans!itted by law& by donation& by
estate and intestate s"ccession& and in conse0"ence of certain contracts& by tradition.
They !ay also be ac0"ired by !eans of prescription. (,75a)

Title (. 1 #CC?PAT(#6

Art. /1'. Thins appropriable by nat"re which are witho"t an owner& s"ch as ani!als that are the
ob.ect of h"ntin and fishin& hidden treas"re and abandoned !ovables& are ac0"ired by
occ"pation. (,17)
Art. /1*. The ownership of a piece of land cannot be ac0"ired by occ"pation. (n)
Art. /1+. The riht to h"nt and to fish is re"lated by special laws. (,11)
Art. /1,. The owner of a swar! of bees shall have a riht to p"rs"e the! to another;s land&
inde!nifyin the possessor of the latter for the da!ae. (f the owner has not p"rs"ed the swar!& or
ceases to do so within two consec"tive days& the possessor of the land !ay occ"py or retain the
sa!e. The owner of do!esticated ani!als !ay also clai! the! within twenty days to be co"nted
fro! their occ"pation by another person. This period havin e)pired& they shall pertain to hi! who
has ca"ht and kept the!. (,12a)
Art. /1/. Pieons and fish which fro! their respective breedin places pass to another pertainin to
a different owner shall belon to the latter& provided they have not been enticed by so!e article of
fra"d. (,1'a)
Art. /13. 9e who by chance discovers hidden treas"re in another;s property shall have the riht
ranted hi! in article *'3 of this Code. (,1*)
Art. /15. 2hoever finds a !ovable& which is not treas"re& !"st ret"rn it to its previo"s possessor.
(f the latter is "nknown& the finder shall i!!ediately deposit it with the !ayor of the city or
!"nicipality where the findin has taken place.
The findin shall be p"blicly anno"nced by the !ayor for two consec"tive weeks in the way he
dee!s best.
(f the !ovable cannot be kept witho"t deterioration& or witho"t e)penses which considerably
di!inish its val"e& it shall be sold at p"blic a"ction eiht days after the p"blication.
@i) !onths fro! the p"blication havin elapsed witho"t the owner havin appeared& the thin
fo"nd& or its val"e& shall be awarded to the finder. The finder and the owner shall be oblied& as the
case !ay be& to rei!b"rse the e)penses. (,1+a)
Art. /27. (f the owner sho"ld appear in ti!e& he shall be oblied to pay& as a reward to the finder&
one1tenth of the s"! or of the price of the thin fo"nd. (,1,a)

Title ((. 1 (6T:LL:CT?AL C-:AT(#6

Art. /21. By intellect"al creation& the followin persons ac0"ire ownership<
(1) The a"thor with reard to his literary& dra!atic& historical& leal& philosophical& scientific or
other work8
(2) The co!poser8 as to his !"sical co!position8
(') The painter& sc"lptor& or other artist& with respect to the prod"ct of his art8
(*) The scientist or technoloist or any other person with reard to his discovery or invention. (n)
Art. /22. The a"thor and the co!poser& !entioned in 6os. 1 and 2 of the precedin article& shall
have the ownership of their creations even before the p"blication of the sa!e. #nce their works are
p"blished& their rihts are overned by the Copyriht laws.
The painter& sc"lptor or other artist shall have do!inion over the prod"ct of his art even before it is
copyrihted.
The scientist or technoloist has the ownership of his discovery or invention even before it is
patented. (n)
Art. /2'. Letters and other private co!!"nications in writin are owned by the person to who!
they are addressed and delivered& b"t they cannot be p"blished or disse!inated witho"t the consent
of the writer or his heirs. 9owever& the co"rt !ay a"thori%e their p"blication or disse!ination if the
p"blic ood or the interest of ."stice so re0"ires. (n)
Art. /2*. @pecial laws overn copyriht and patent. (*25a)

Ti!" III. # DONATION
CHAPTER $
NATURE OF DONATIONS

Art. /2+. Donation is an act of liberality whereby a person disposes rat"ito"sly of a thin or riht
in favor of another& who accepts it. (,13a)
Art. /2,. 2hen a person ives to another a thin or riht on acco"nt of the latter;s !erits or of the
services rendered by hi! to the donor& provided they do not constit"te a de!andable debt& or when
the ift i!poses "pon the donee a b"rden which is less than the val"e of the thin iven& there is
also a donation. (,15)
Art. /2/. (lleal or i!possible conditions in si!ple and re!"neratory donations shall be considered
as not i!posed. (n)
Art. /23. Donations which are to take effect "pon the death of the donor partake of the nat"re of
testa!entary provisions& and shall be overned by the r"les established in the Title on @"ccession.
(,27)
Art. /25. 2hen the donor intends that the donation shall take effect d"rin the lifeti!e of the
donor& tho"h the property shall not be delivered till after the donor;s death& this shall be a donation
inter vivos. The fr"its of the property fro! the ti!e of the acceptance of the donation& shall pertain
to the donee& "nless the donor provides otherwise. (n)
Art. /'7. The fi)in of an event or the i!position of a s"spensive condition& which !ay take place
beyond the nat"ral e)pectation of life of the donor& does not destroy the nat"re of the act as a
donation inter vivos& "nless a contrary intention appears. (n)
Art. /'1. 2hen a person donates so!ethin& s"b.ect to the resol"tory condition of the donor;s
s"rvival& there is a donation inter vivos. (n)
Art. /'2. Donations which are to take effect inter vivos shall be overned by the eneral provisions
on contracts and obliations in all that is not deter!ined in this Title. (,21)
Art. /''. Donations with an onero"s ca"se shall be overned by the r"les on contracts and
re!"neratory donations by the provisions of the present Title as reards that portion which e)ceeds
the val"e of the b"rden i!posed. (,22)
Art. /'*. The donation is perfected fro! the !o!ent the donor knows of the acceptance by the
donee. (,2')

C9APT:- 2
P:-@#6@ 29# =AF $(>: #- -:C:(>: A D#6AT(#6

Art. /'+. All persons who !ay contract and dispose of their property !ay !ake a donation. (,2*)
Art. /',. $"ardians and tr"stees cannot donate the property entr"sted to the!. (n)
Art. /'/. The donor;s capacity shall be deter!ined as of the ti!e of the !akin of the donation. (n)
Art. /'3. Al those who are not specially dis0"alified by law therefor !ay accept donations. (,2+)
Art. /'5. The followin donations shall be void<
(1) Those !ade between persons who were "ilty of ad"ltery or conc"binae at the ti!e of the
donation8
(2) Those !ade between persons fo"nd "ilty of the sa!e cri!inal offense& in consideration
thereof8
(') Those !ade to a p"blic officer or his wife& descedants and ascendants& by reason of his office.
(n the case referred to in 6o. 1& the action for declaration of n"llity !ay be bro"ht by the spo"se
of the donor or donee8 and the "ilt of the donor and donee !ay be proved by preponderance of
evidence in the sa!e action. (n)
Art. /*7. (ncapacity to s"cceed by will shall be applicable to donations inter vivos. (n)
Art. /*1. =inors and others who cannot enter into a contract !ay beco!e donees b"t acceptance
shall be done thro"h their parents or leal representatives. (,2,a)
Art. /*2. Donations !ade to conceived and "nborn children !ay be accepted by those persons who
wo"ld leally represent the! if they were already born. (,2/)
Art. /*'. Donations !ade to incapacitated persons shall be void& tho"h si!"lated "nder the "ise
of another contract or thro"h a person who is interposed. (,23)
Art. /**. Donations of the sa!e thin to two or !ore different donees shall be overned by the
provisions concernin the sale of the sa!e thin to two or !ore different persons. (n)
Art. /*+. The donee !"st accept the donation personally& or thro"h an a"thori%ed person with a
special power for the p"rpose& or with a eneral and s"fficient power8 otherwise& the donation shall
be void. (,'7)
Art. /*,. Acceptance !"st be !ade d"rin the lifeti!e of the donor and of the donee. (n)
Art. /*/. Persons who accept donations in representation of others who !ay not do so by
the!selves& shall be oblied to !ake the notification and notation of which Article /*5 speaks.
(,'1)
Art. /*3. The donation of a !ovable !ay be !ade orally or in writin.
An oral donation re0"ires the si!"ltaneo"s delivery of the thin or of the doc"!ent representin
the riht donated.
(f the val"e of the personal property donated e)ceeds five tho"sand pesos& the donation and the
acceptance shall be !ade in writin& otherwise& the donation shall be void. (,'2a)
Art. /*5. (n order that the donation of an i!!ovable !ay be valid& it !"st be !ade in a p"blic
doc"!ent& specifyin therein the property donated and the val"e of the chares which the donee
!"st satisfy.
The acceptance !ay be !ade in the sa!e deed of donation or in a separate p"blic doc"!ent& b"t it
shall not take effect "nless it is done d"rin the lifeti!e of the donor.
(f the acceptance is !ade in a separate instr"!ent& the donor shall be notified thereof in an
a"thentic for!& and this step shall be noted in both instr"!ents. (,'')

C9APT:- '
:AA:CT #A D#6AT(#6@ A6D L(=(TAT(#6@ T9:-:#6

Art. /+7. The donations !ay co!prehend all the present property of the donor& or part thereof&
provided he reserves& in f"ll ownership or in "s"fr"ct& s"fficient !eans for the s"pport of hi!self&
and of all relatives who& at the ti!e of the acceptance of the donation& are by law entitled to be
s"pported by the donor. 2itho"t s"ch reservation& the donation shall be red"ced in petition of any
person affected. (,'*a)
Art. /+1. Donations cannot co!prehend f"t"re property.
By f"t"re property is "nderstood anythin which the donor cannot dispose of at the ti!e of the
donation. (,'+)
Art. /+2. The provisions of Article /+7 notwithstandin& no person !ay ive or receive& by way of
donation& !ore than he !ay ive or receive by will.
The donation shall be inofficio"s in all that it !ay e)ceed this li!itation. (,',)
Art. /+'. 2hen a donation is !ade to several persons .ointly& it is "nderstood to be in e0"al shares&
and there shall be no riht of accretion a!on the!& "nless the donor has otherwise provided.
The precedin pararaph shall not be applicable to donations !ade to the h"sband and wife .ointly&
between who! there shall be a riht of accretion& if the contrary has not been provided by the
donor. (,'/)
Art. /+*. The donee is s"broated to all the rihts and actions which in case of eviction wo"ld
pertain to the donor. The latter& on the other hand& is not oblied to warrant the thins donated& save
when the donation is onero"s& in which case the donor shall be liable for eviction to the
conc"rrence of the b"rden.
The donor shall also be liable for eviction or hidden defects in case of bad faith on his part. (,'3a)
Art. /++. The riht to dispose of so!e of the thins donated& or of so!e a!o"nt which shall be a
chare thereon& !ay be reserved by the donor8 b"t if he sho"ld die witho"t havin !ade "se of this
riht& the property or a!o"nt reserved shall belon to the donee. (,'5)
Art. /+,. The ownership of property !ay also be donated to one person and the "s"fr"ct to another
or others& provided all the donees are livin at the ti!e of the donation. (,*7a)
Art. /+/. -eversion !ay be validly established in favor of only the donor for any case and
circ"!stances& b"t not in favor of other persons "nless they are all livin at the ti!e of the
donation.
Any reversion stip"lated by the donor in favor of a third person in violation of what is provided in
the precedin pararaph shall be void& b"t shall not n"llify the donation. (,1*a)
Art. /+3. 2hen the donation i!poses "pon the donee the obliation to pay the debts of the donor& if
the cla"se does not contain any declaration to the contrary& the for!er is "nderstood to be liable to
pay only the debts which appear to have been previo"sly contracted. (n no case shall the donee be
responsible for the debts e)ceedin the val"e of the property donated& "nless a contrary intention
clearly appears. (,*2a)
Art. /+5. There bein no stip"lation reardin the pay!ent of debts& the donee shall be responsible
therefor only when the donation has been !ade in fra"d of creditors.
The donation is always pres"!ed to be in fra"d of creditors& when at the ti!e thereof the donor did
not reserve s"fficient property to pay his debts prior to the donation. (,*')

C9APT:- *
-:>#CAT(#6 A6D -:D?CT(#6 #A D#6AT(#6@

Art. /,7. :very donation inter vivos& !ade by a person havin no children or descendants&
leiti!ate or leiti!ated by s"bse0"ent !arriae& or illeiti!ate& !ay be revoked or red"ced as
provided in the ne)t article& by the happenin of any of these events<
(1) (f the donor& after the donation& sho"ld have leiti!ate or leiti!ated or illeiti!ate children&
even tho"h they be posth"!o"s8
(2) (f the child of the donor& who! the latter believed to be dead when he !ade the donation&
sho"ld t"rn o"t to be livin8
(') (f the donor s"bse0"ently adopt a !inor child. (,**a)
Art. /,1. (n the cases referred to in the precedin article& the donation shall be revoked or red"ced
insofar as it e)ceeds the portion that !ay be freely disposed of by will& takin into acco"nt the
whole estate of the donor at the ti!e of the birth& appearance or adoption of a child. (n)
Art. /,2. ?pon the revocation or red"ction of the donation by the birth& appearance or adoption of a
child& the property affected shall be ret"rned or its val"e if the donee has sold the sa!e.
(f the property is !ortaed& the donor !ay redee! the !ortae& by payin the a!o"nt
"aranteed& with a riht to recover the sa!e fro! the donee.
2hen the property cannot be ret"rned& it shall be esti!ated at what it was worth at the ti!e of the
donation. (,*+a)
Art. /,'. The action for revocation or red"ction on the ro"nds set forth in article /,7 shall
prescribe after fo"r years fro! the birth of the first child& or fro! his leiti!ation& reconition or
adoption& or fro! the ."dicial declaration of filiation& or fro! the ti!e infor!ation was received
reardin the e)istence of the child believed dead.
This action cannot be reno"nced& and is trans!itted& "pon the death of the donor& to his leiti!ate
and illeiti!ate children and descendants. (,*,a)
Art. /,*. The donation shall be revoked at the instance of the donor& when the donee fails to
co!ply with any of the conditions which the for!er i!posed "pon the latter.
(n this case& the property donated shall be ret"rned to the donor& the alienations !ade by the donee
and the !ortaes i!posed thereon by hi! bein void& with the li!itations established& with reard
to third persons& by the =ortae Law and the Land -eistration Laws.
This action shall prescribe after fo"r years fro! the nonco!pliance with the condition& !ay be
trans!itted to the heirs of the donor& and !ay be e)ercised aainst the donee;s heirs. (,*/a)
Art. /,+. The donation !ay also be revoked at the instance of the donor& by reason of inratit"de in
the followin cases<
(1) (f the donee sho"ld co!!it so!e offense aainst the person& the honor or the property of the
donor& or of his wife or children "nder his parental a"thority8
(2) (f the donee i!p"tes to the donor any cri!inal offense& or any act involvin !oral t"rpit"de&
even tho"h he sho"ld prove it& "nless the cri!e or the act has been co!!itted aainst the donee
hi!self& his wife or children "nder his a"thority8
(') (f he "nd"ly ref"ses hi! s"pport when the donee is leally or !orally bo"nd to ive s"pport to
the donor. (,*3a)
Art. /,,. Altho"h the donation is revoked on acco"nt of inratit"de& nevertheless& the alienations
and !ortaes effected before the notation of the co!plaint for revocation in the -eistry of
Property shall s"bsist.
Later ones shall be void. (,*5)
Art. /,/. (n the case referred to in the first pararaph of the precedin article& the donor shall have
a riht to de!and fro! the donee the val"e of property alienated which he cannot recover fro!
third persons& or the s"! for which the sa!e has been !ortaed.
The val"e of said property shall be fi)ed as of the ti!e of the donation. (,+7)
Art. /,3. 2hen the donation is revoked for any of the ca"ses stated in Article /,7& or by reason of
inratit"de& or when it is red"ced beca"se it is inofficio"s& the donee shall not ret"rn the fr"its
e)cept fro! the filin of the co!plaint.
(f the revocation is based "pon nonco!pliance with any of the conditions i!posed in the donation&
the donee shall ret"rn not only the property b"t also the fr"its thereof which he !ay have received
after havin failed to f"lfill the condition. (,+1)
Art. /,5. The action ranted to the donor by reason of inratit"de cannot be reno"nced in advance.
This action prescribes within one year& to be co"nted fro! the ti!e the donor had knowlede of the
fact and it was possible for hi! to brin the action. (,+2)
Art. //7. This action shall not be trans!itted to the heirs of the donor& if the latter did not instit"te
the sa!e& altho"h he co"ld have done so& and even if he sho"ld die before the e)piration of one
year.
6either can this action be bro"ht aainst the heir of the donee& "nless "pon the latter;s death the
co!plaint has been filed. (,+')
Art. //1. Donations which in accordance with the provisions of Article /+2& are inofficio"s&
bearin in !ind the esti!ated net val"e of the donor;s property at the ti!e of his death& shall be
red"ced with reard to the e)cess8 b"t this red"ction shall not prevent the donations fro! takin
effect d"rin the life of the donor& nor shall it bar the donee fro! appropriatin the fr"its.
Aor the red"ction of donations the provisions of this Chapter and of Articles 511 and 512 of this
Code shall overn. (,+*)
Art. //2. #nly those who at the ti!e of the donor;s death have a riht to the leiti!e and their heirs
and s"ccessors in interest !ay ask for the red"ction or inofficio"s donations.
Those referred to in the precedin pararaph cannot reno"nce their riht d"rin the lifeti!e of the
donor& either by e)press declaration& or by consentin to the donation.
The donees& devisees and leatees& who are not entitled to the leiti!e and the creditors of the
deceased can neither ask for the red"ction nor avail the!selves thereof. (,++a)
Art. //'. (f& there bein two or !ore donations& the disposable portion is not s"fficient to cover all
of the!& those of the !ore recent date shall be s"ppressed or red"ced with reard to the e)cess.
(,+,)

Title (>. 1 @?CC:@@(#6

C9APT:- 1
$:6:-AL P-#>(@(#6@

Art. //*. @"ccession is a !ode of ac0"isition by virt"e of which the property& rihts and
obliations to the e)tent of the val"e of the inheritance& of a person are trans!itted thro"h his
death to another or others either by his will or by operation of law. (n)
Art. //+. (n this Title& "decedent" is the eneral ter! applied to the person whose property is
trans!itted thro"h s"ccession& whether or not he left a will. (f he left a will& he is also called the
testator. (n)
Art. //,. The inheritance incl"des all the property& rihts and obliations of a person which are not
e)tin"ished by his death. (,+5)
Art. ///. The rihts to the s"ccession are trans!itted fro! the !o!ent of the death of the
decedent. (,+/a)
Art. //3. @"ccession !ay be<
(1) Testa!entary8
(2) Leal or intestate8 or
(') =i)ed. (n)
Art. //5. Testa!entary s"ccession is that which res"lts fro! the desination of an heir& !ade in a
will e)ec"ted in the for! prescribed by law. (n)
Art. /37. =i)ed s"ccession is that effected partly by will and partly by operation of law. (n)
Art. /31. The inheritance of a person incl"des not only the property and the trans!issible rihts
and obliations e)istin at the ti!e of his death& b"t also those which have accr"ed thereto since
the openin of the s"ccession. (n)
Art. /32. An heir is a person called to the s"ccession either by the provision of a will or by
operation of law.
Devisees and leatees are persons to who! ifts of real and personal property are respectively
iven by virt"e of a will. (n)

C9APT:- 2
T:@TA=:6TA-F @?CC:@@(#6

@:CT(#6 1. 1 2ills

@?B@:CT(#6 1. 1 2ills in $eneral

Art. /3'. A will is an act whereby a person is per!itted& with the for!alities prescribed by law& to
control to a certain deree the disposition of this estate& to take effect after his death. (,,/a)
Art. /3*. The !akin of a will is a strictly personal act8 it cannot be left in whole or in part of the
discretion of a third person& or acco!plished thro"h the instr"!entality of an aent or attorney.
(,/7a)
Art. /3+. The d"ration or efficacy of the desination of heirs& devisees or leatees& or the
deter!ination of the portions which they are to take& when referred to by na!e& cannot be left to
the discretion of a third person. (,/7a)
Art. /3,. The testator !ay entr"st to a third person the distrib"tion of specific property or s"!s of
!oney that he !ay leave in eneral to specified classes or ca"ses& and also the desination of the
persons& instit"tions or establish!ents to which s"ch property or s"!s are to be iven or applied.
(,/1a)
Art. /3/. The testator !ay not !ake a testa!entary disposition in s"ch !anner that another person
has to deter!ine whether or not it is to be operative. (n)
Art. /33. (f a testa!entary disposition ad!its of different interpretations& in case of do"bt& that
interpretation by which the disposition is to be operative shall be preferred. (n)
Art. /35. 2hen there is an i!perfect description& or when no person or property e)actly answers
the description& !istakes and o!issions !"st be corrected& if the error appears fro! the conte)t of
the will or fro! e)trinsic evidence& e)cl"din the oral declarations of the testator as to his
intention8 and when an "ncertainty arises "pon the face of the will& as to the application of any of
its provisions& the testator;s intention is to be ascertained fro! the words of the will& takin into
consideration the circ"!stances "nder which it was !ade& e)cl"din s"ch oral declarations. (n)
Art. /57. The words of a will are to be taken in their ordinary and ra!!atical sense& "nless a clear
intention to "se the! in another sense can be athered& and that other can be ascertained.
Technical words in a will are to be taken in their technical sense& "nless the conte)t clearly
indicates a contrary intention& or "nless it satisfactorily appears that he was "nac0"ainted with s"ch
technical sense. (,/+a)
Art. /51. The words of a will are to receive an interpretation which will ive to every e)pression
so!e effect& rather than one which will render any of the e)pressions inoperative8 and of two
!odes of interpretin a will& that is to be preferred which will prevent intestacy. (n)
Art. /52. The invalidity of one of several dispositions contained in a will does not res"lt in the
invalidity of the other dispositions& "nless it is to be pres"!ed that the testator wo"ld not have
!ade s"ch other dispositions if the first invalid disposition had not been !ade. (n)
Art. /5'. Property ac0"ired after the !akin of a will shall only pass thereby& as if the testator had
possessed it at the ti!e of !akin the will& sho"ld it e)pressly appear by the will that s"ch was his
intention. (n)
Art. /5*. :very devise or leacy shall cover all the interest which the testator co"ld device or
be0"eath in the property disposed of& "nless it clearly appears fro! the will that he intended to
convey a less interest. (n)
Art. /5+. The validity of a will as to its for! depends "pon the observance of the law in force at the
ti!e it is !ade. (n)

@?B@:CT(#6 2. 1 Testa!entary Capacity and (ntent

Art. /5,. All persons who are not e)pressly prohibited by law !ay !ake a will. (,,2)
Art. /5/. Persons of either se) "nder eihteen years of ae cannot !ake a will. (n)
Art. /53. (n order to !ake a will it is essential that the testator be of so"nd !ind at the ti!e of its
e)ec"tion. (n)
Art. /55. To be of so"nd !ind& it is not necessary that the testator be in f"ll possession of all his
reasonin fac"lties& or that his !ind be wholly "nbroken& "ni!paired& or "nshattered by disease&
in."ry or other ca"se.
(t shall be s"fficient if the testator was able at the ti!e of !akin the will to know the nat"re of the
estate to be disposed of& the proper ob.ects of his bo"nty& and the character of the testa!entary act.
(n)
Art. 377. The law pres"!es that every person is of so"nd !ind& in the absence of proof to the
contrary.
The b"rden of proof that the testator was not of so"nd !ind at the ti!e of !akin his dispositions
is on the person who opposes the probate of the will8 b"t if the testator& one !onth& or less& before
!akin his will was p"blicly known to be insane& the person who !aintains the validity of the will
!"st prove that the testator !ade it d"rin a l"cid interval. (n)
Art. 371. @"pervenin incapacity does not invalidate an effective will& nor is the will of an
incapable validated by the s"pervenin of capacity. (n)
Art. 372. A !arried wo!an !ay !ake a will witho"t the consent of her h"sband& and witho"t the
a"thority of the co"rt. (n)
Art. 37'. A !arried wo!an !ay dispose by will of all her separate property as well as her share of
the con."al partnership or absol"te co!!"nity property. (n)

@?B@:CT(#6 '. 1 Aor!s of 2ills

Art. 37*. :very will !"st be in writin and e)ec"ted in a lan"ae or dialect known to the testator.
(n)
Art. 37+. :very will& other than a holoraphic will& !"st be s"bscribed at the end thereof by the
testator hi!self or by the testator;s na!e written by so!e other person in his presence& and by his
e)press direction& and attested and s"bscribed by three or !ore credible witnesses in the presence
of the testator and of one another.
The testator or the person re0"ested by hi! to write his na!e and the instr"!ental witnesses of the
will& shall also sin& as aforesaid& each and every pae thereof& e)cept the last& on the left !arin&
and all the paes shall be n"!bered correlatively in letters placed on the "pper part of each pae.
The attestation shall state the n"!ber of paes "sed "pon which the will is written& and the fact that
the testator sined the will and every pae thereof& or ca"sed so!e other person to write his na!e&
"nder his e)press direction& in the presence of the instr"!ental witnesses& and that the latter
witnessed and sined the will and all the paes thereof in the presence of the testator and of one
another.
(f the attestation cla"se is in a lan"ae not known to the witnesses& it shall be interpreted to the!.
(n)
Art. 37,. :very will !"st be acknowleded before a notary p"blic by the testator and the
witnesses. The notary p"blic shall not be re0"ired to retain a copy of the will& or file another with
the #ffice of the Clerk of Co"rt. (n)
Art. 37/. (f the testator be deaf& or a deaf1!"te& he !"st personally read the will& if able to do so8
otherwise& he shall desinate two persons to read it and co!!"nicate to hi!& in so!e practicable
!anner& the contents thereof. (n)
Art. 373. (f the testator is blind& the will shall be read to hi! twice8 once& by one of the s"bscribin
witnesses& and aain& by the notary p"blic before who! the will is acknowleded. (n)
Art. 375. (n the absence of bad faith& forery& or fra"d& or "nd"e and i!proper press"re and
infl"ence& defects and i!perfections in the for! of attestation or in the lan"ae "sed therein shall
not render the will invalid if it is proved that the will was in fact e)ec"ted and attested in
s"bstantial co!pliance with all the re0"ire!ents of Article 37+. (n)
Art. 317. A person !ay e)ec"te a holoraphic will which !"st be entirely written& dated& and
sined by the hand of the testator hi!self. (t is s"b.ect to no other for!& and !ay be !ade in or o"t
of the Philippines& and need not be witnessed. (,/3& ,33a)
Art. 311. (n the probate of a holoraphic will& it shall be necessary that at least one witness who
knows the handwritin and sinat"re of the testator e)plicitly declare that the will and the sinat"re
are in the handwritin of the testator. (f the will is contested& at least three of s"ch witnesses shall
be re0"ired.
(n the absence of any co!petent witness referred to in the precedin pararaph& and if the co"rt
dee! it necessary& e)pert testi!ony !ay be resorted to. (,15a)
Art. 312. (n holoraphic wills& the dispositions of the testator written below his sinat"re !"st be
dated and sined by hi! in order to !ake the! valid as testa!entary dispositions. (n)
Art. 31'. 2hen a n"!ber of dispositions appearin in a holoraphic will are sined witho"t bein
dated& and the last disposition has a sinat"re and a date& s"ch date validates the dispositions
precedin it& whatever be the ti!e of prior dispositions. (n)
Art. 31*. (n case of any insertion& cancellation& eras"re or alteration in a holoraphic will& the
testator !"st a"thenticate the sa!e by his f"ll sinat"re. (n)
Art. 31+. 2hen a Ailipino is in a forein co"ntry& he is a"thori%ed to !ake a will in any of the
for!s established by the law of the co"ntry in which he !ay be. @"ch will !ay be probated in the
Philippines. (n)
Art. 31,. The will of an alien who is abroad prod"ces effect in the Philippines if !ade with the
for!alities prescribed by the law of the place in which he resides& or accordin to the for!alities
observed in his co"ntry& or in confor!ity with those which this Code prescribes. (n)
Art. 31/. A will !ade in the Philippines by a citi%en or s"b.ect of another co"ntry& which is
e)ec"ted in accordance with the law of the co"ntry of which he is a citi%en or s"b.ect& and which
!iht be proved and allowed by the law of his own co"ntry& shall have the sa!e effect as if
e)ec"ted accordin to the laws of the Philippines. (n)
Art. 313. Two or !ore persons cannot !ake a will .ointly& or in the sa!e instr"!ent& either for their
reciprocal benefit or for the benefit of a third person. (,,5)
Art. 315. 2ills& prohibited by the precedin article& e)ec"ted by Ailipinos in a forein co"ntry shall
not be valid in the Philippines& even tho"h a"thori%ed by the laws of the co"ntry where they !ay
have been e)ec"ted. (/''a)

@?B@:CT(#6 *. 1 2itnesses to 2ills

Art. 327. Any person of so"nd !ind and of the ae of eihteen years or !ore& and not bind& deaf or
d"!b& and able to read and write& !ay be a witness to the e)ec"tion of a will !entioned in Article
37+ of this Code. (n)
Art. 321. The followin are dis0"alified fro! bein witnesses to a will<
(1) Any person not do!iciled in the Philippines8
(2) Those who have been convicted of falsification of a doc"!ent& per."ry or false testi!ony. (n)
Art. 322. (f the witnesses attestin the e)ec"tion of a will are co!petent at the ti!e of attestin&
their beco!in s"bse0"ently inco!petent shall not prevent the allowance of the will. (n)
Art. 32'. (f a person attests the e)ec"tion of a will& to who! or to whose spo"se& or parent& or child&
a devise or leacy is iven by s"ch will& s"ch devise or leacy shall& so far only as concerns s"ch
person& or spo"se& or parent& or child of s"ch person& or any one clai!in "nder s"ch person or
spo"se& or parent& or child& be void& "nless there are three other co!petent witnesses to s"ch will.
9owever& s"ch person so attestin shall be ad!itted as a witness as if s"ch devise or leacy had not
been !ade or iven. (n)
Art. 32*. A !ere chare on the estate of the testator for the pay!ent of debts d"e at the ti!e of the
testator;s death does not prevent his creditors fro! bein co!petent witnesses to his will. (n)
@?B@:CT(#6 +. 1 Codicils and (ncorporation by -eference
Art. 32+. A codicil is s"pple!ent or addition to a will& !ade after the e)ec"tion of a will and
anne)ed to be taken as a part thereof& by which disposition !ade in the oriinal will is e)plained&
added to& or altered. (n)
Art. 32,. (n order that a codicil !ay be effective& it shall be e)ec"ted as in the case of a will. (n)
Art. 32/. (f a will& e)ec"ted as re0"ired by this Code& incorporates into itself by reference any
doc"!ent or paper& s"ch doc"!ent or paper shall not be considered a part of the will "nless the
followin re0"isites are present<
(1) The doc"!ent or paper referred to in the will !"st be in e)istence at the ti!e of the e)ec"tion
of the will8
(2) The will !"st clearly describe and identify the sa!e& statin a!on other thins the n"!ber of
paes thereof8
(') (t !"st be identified by clear and satisfactory proof as the doc"!ent or paper referred to
therein8 and
(*) (t !"st be sined by the testator and the witnesses on each and every pae& e)cept in case of
vol"!ino"s books of acco"nt or inventories. (n)
@?B@:CT(#6 ,. 1 -evocation of 2ills and Testa!entary Dispositions

Art. 323. A will !ay be revoked by the testator at any ti!e before his death. Any waiver or
restriction of this riht is void. (/'/a)
Art. 325. A revocation done o"tside the Philippines& by a person who does not have his do!icile in
this co"ntry& is valid when it is done accordin to the law of the place where the will was !ade& or
accordin to the law of the place in which the testator had his do!icile at the ti!e8 and if the
revocation takes place in this co"ntry& when it is in accordance with the provisions of this Code. (n)
Art. 3'7. 6o will shall be revoked e)cept in the followin cases<
(1) By i!plication of law8 or
(2) By so!e will& codicil& or other writin e)ec"ted as provided in case of wills8 or
(') By b"rnin& tearin& cancellin& or obliteratin the will with the intention of revokin it& by the
testator hi!self& or by so!e other person in his presence& and by his e)press direction. (f b"rned&
torn& cancelled& or obliterated by so!e other person& witho"t the e)press direction of the testator&
the will !ay still be established& and the estate distrib"ted in accordance therewith& if its contents&
and d"e e)ec"tion& and the fact of its "na"thori%ed destr"ction& cancellation& or obliteration are
established accordin to the -"les of Co"rt. (n)
Art. 3'1. @"bse0"ent wills which do not revoke the previo"s ones in an e)press !anner& ann"l only
s"ch dispositions in the prior wills as are inconsistent with or contrary to those contained in the
latter wills. (n)
Art. 3'2. A revocation !ade in a s"bse0"ent will shall take effect& even if the new will sho"ld
beco!e inoperative by reason of the incapacity of the heirs& devisees or leatees desinated therein&
or by their ren"nciation. (/*7a)
Art. 3''. A revocation of a will based on a false ca"se or an illeal ca"se is n"ll and void. (n)
Art. 3'*. The reconition of an illeiti!ate child does not lose its leal effect& even tho"h the will
wherein it was !ade sho"ld be revoked. (/1*)

@?B@:CT(#6 /. 1 -ep"blication and -evival of 2ills

Art. 3'+. The testator cannot rep"blish& witho"t reprod"cin in a s"bse0"ent will& the dispositions
contained in a previo"s one which is void as to its for!. (n)
Art. 3',. The e)ec"tion of a codicil referrin to a previo"s will has the effect of rep"blishin the
will as !odified by the codicil. (n)
Art. 3'/. (f after !akin a will& the testator !akes a second will e)pressly revokin the first& the
revocation of the second will does not revive the first will& which can be revived only by another
will or codicil. (/'5a)

@?B@:CT(#6 3. 1 Allowance and Disallowance of 2ills

Art. 3'3. 6o will shall pass either real or personal property "nless it is proved and allowed in
accordance with the -"les of Co"rt.
The testator hi!self !ay& d"rin his lifeti!e& petition the co"rt havin ."risdiction for the
allowance of his will. (n s"ch case& the pertinent provisions of the -"les of Co"rt for the allowance
of wills after the testator;s a death shall overn.
The @"pre!e Co"rt shall for!"late s"ch additional -"les of Co"rt as !ay be necessary for the
allowance of wills on petition of the testator.
@"b.ect to the riht of appeal& the allowance of the will& either d"rin the lifeti!e of the testator or
after his death& shall be concl"sive as to its d"e e)ec"tion. (n)
Art. 3'5. The will shall be disallowed in any of the followin cases<
(1) (f the for!alities re0"ired by law have not been co!plied with8
(2) (f the testator was insane& or otherwise !entally incapable of !akin a will& at the ti!e of its
e)ec"tion8
(') (f it was e)ec"ted thro"h force or "nder d"ress& or the infl"ence of fear& or threats8
(*) (f it was proc"red by "nd"e and i!proper press"re and infl"ence& on the part of the beneficiary
or of so!e other person8
(+) (f the sinat"re of the testator was proc"red by fra"d8
(,) (f the testator acted by !istake or did not intend that the instr"!ent he sined sho"ld be his will
at the ti!e of affi)in his sinat"re thereto. (n)
@:CT(#6 2. 1 (nstit"tion of 9eir

Art. 3*7. (nstit"tion of heir is an act by virt"e of which a testator desinates in his will the person
or persons who are to s"cceed hi! in his property and trans!issible rihts and obliations. (n)
Art. 3*1. A will shall be valid even tho"h it sho"ld not contain an instit"tion of an heir& or s"ch
instit"tion sho"ld not co!prise the entire estate& and even tho"h the person so instit"ted sho"ld
not accept the inheritance or sho"ld be incapacitated to s"cceed.
(n s"ch cases the testa!entary dispositions !ade in accordance with law shall be co!plied with
and the re!ainder of the estate shall pass to the leal heirs. (/,*)
Art. 3*2. #ne who has no co!p"lsory heirs !ay dispose by will of all his estate or any part of it in
favor of any person havin capacity to s"cceed.
#ne who has co!p"lsory heirs !ay dispose of his estate provided he does not contravene the
provisions of this Code with reard to the leiti!e of said heirs. (/,'a)
Art. 3*'. The testator shall desinate the heir by his na!e and s"rna!e& and when there are two
persons havin the sa!e na!es& he shall indicate so!e circ"!stance by which the instit"ted heir
!ay be known.
:ven tho"h the testator !ay have o!itted the na!e of the heir& sho"ld he desinate hi! in s"ch
!anner that there can be no do"bt as to who has been instit"ted& the instit"tion shall be valid. (//2)
Art. 3**. An error in the na!e& s"rna!e& or circ"!stances of the heir shall not vitiate the instit"tion
when it is possible& in any other !anner& to know with certainty the person instit"ted.
(f a!on persons havin the sa!e na!es and s"rna!es& there is a si!ilarity of circ"!stances in
s"ch a way that& even with the "se of the other proof& the person instit"ted cannot be identified&
none of the! shall be an heir. (//'a)
Art. 3*+. :very disposition in favor of an "nknown person shall be void& "nless by so!e event or
circ"!stance his identity beco!es certain. 9owever& a disposition in favor of a definite class or
ro"p of persons shall be valid. (/+7a)
Art. 3*,. 9eirs instit"ted witho"t desination of shares shall inherit in e0"al parts. (/,+)
Art. 3*/. 2hen the testator instit"tes so!e heirs individ"ally and others collectively as when he
says& "( desinate as !y heirs A and B& and the children of C&" those collectively desinated shall
be considered as individ"ally instit"ted& "nless it clearly appears that the intention of the testator
was otherwise. (/,5a)
Art. 3*3. (f the testator sho"ld instit"te his brothers and sisters& and he has so!e of f"ll blood and
others of half blood& the inheritance shall be distrib"ted e0"ally "nless a different intention appears.
(//7a)
Art. 3*5. 2hen the testator calls to the s"ccession a person and his children they are all dee!ed to
have been instit"ted si!"ltaneo"sly and not s"ccessively. (//1)
Art. 3+7. The state!ent of a false ca"se for the instit"tion of an heir shall be considered as not
written& "nless it appears fro! the will that the testator wo"ld not have !ade s"ch instit"tion if he
had known the falsity of s"ch ca"se. (/,/a)
Art. 3+1. (f the testator has instit"ted only one heir& and the instit"tion is li!ited to an ali0"ot part
of the inheritance& leal s"ccession takes place with respect to the re!ainder of the estate.
The sa!e r"le applies if the testator has instit"ted several heirs& each bein li!ited to an ali0"ot
part& and all the parts do not cover the whole inheritance. (n)
Art. 3+2. (f it was the intention of the testator that the instit"ted heirs sho"ld beco!e sole heirs to
the whole estate& or the whole free portion& as the case !ay be& and each of the! has been instit"ted
to an ali0"ot part of the inheritance and their ali0"ot parts toether do not cover the whole
inheritance& or the whole free portion& each part shall be increased proportionally. (n)
Art. 3+'. (f each of the instit"ted heirs has been iven an ali0"ot part of the inheritance& and the
parts toether e)ceed the whole inheritance& or the whole free portion& as the case !ay be& each part
shall be red"ced proportionally. (n)
Art. 3+*. The preterition or o!ission of one& so!e& or all of the co!p"lsory heirs in the direct line&
whether livin at the ti!e of the e)ec"tion of the will or born after the death of the testator& shall
ann"l the instit"tion of heir8 b"t the devises and leacies shall be valid insofar as they are not
inofficio"s.
(f the o!itted co!p"lsory heirs sho"ld die before the testator& the instit"tion shall be effect"al&
witho"t pre."dice to the riht of representation. (31*a)
Art. 3++. The share of a child or descendant o!itted in a will !"st first be taken fro! the part of
the estate not disposed of by the will& if any8 if that is not s"fficient& so !"ch as !ay be necessary
!"st be taken proportionally fro! the shares of the other co!p"lsory heirs. (1737a)
Art. 3+,. A vol"ntary heir who dies before the testator trans!its nothin to his heirs.
A co!p"lsory heir who dies before the testator& a person incapacitated to s"cceed& and one who
reno"nces the inheritance& shall trans!it no riht to his own heirs e)cept in cases e)pressly
provided for in this Code. (/,,a)

@:CT(#6 '. 1 @"bstit"tion of 9eirs

Art. 3+/. @"bstit"tion is the appoint!ent of another heir so that he !ay enter into the inheritance in
defa"lt of the heir oriinally instit"ted. (n)
Art. 3+3. @"bstit"tion of heirs !ay be<
(1) @i!ple or co!!on8
(2) Brief or co!pendio"s8
(') -eciprocal8 or
(*) Aideico!!issary. (n)
Art. 3+5. The testator !ay desinate one or !ore persons to s"bstit"te the heir or heirs instit"ted in
case s"ch heir or heirs sho"ld die before hi!& or sho"ld not wish& or sho"ld be incapacitated to
accept the inheritance.
A si!ple s"bstit"tion& witho"t a state!ent of the cases to which it refers& shall co!prise the three
!entioned in the precedin pararaph& "nless the testator has otherwise provided. (//*)
Art. 3,7. Two or !ore persons !ay be s"bstit"ted for one8 and one person for two or !ore heirs.
(//3)
Art. 3,1. (f heirs instit"ted in "ne0"al shares sho"ld be reciprocally s"bstit"ted& the s"bstit"te shall
ac0"ire the share of the heir who dies& reno"nces& or is incapacitated& "nless it clearly appears that
the intention of the testator was otherwise. (f there are !ore than one s"bstit"te& they shall have the
sa!e share in the s"bstit"tion as in the instit"tion. (//5a)
Art. 3,2. The s"bstit"te shall be s"b.ect to the sa!e chares and conditions i!posed "pon the
instit"ted heir& "nless and testator has e)pressly provided the contrary& or the chares or conditions
are personally applicable only to the heir instit"ted. (/37)
Art. 3,'. A fideico!!issary s"bstit"tion by virt"e of which the fid"ciary or first heir instit"ted is
entr"sted with the obliation to preserve and to trans!it to a second heir the whole or part of the
inheritance& shall be valid and shall take effect& provided s"ch s"bstit"tion does not o beyond one
deree fro! the heir oriinally instit"ted& and provided f"rther& that the fid"ciary or first heir and
the second heir are livin at the ti!e of the death of the testator. (/31a)
Art. 3,*. A fideico!!issary s"bstit"tion can never b"rden the leiti!e. (/32a)
Art. 3,+. :very fideico!!issary s"bstit"tion !"st be e)pressly !ade in order that it !ay be valid.
The fid"ciary shall be oblied to deliver the inheritance to the second heir& witho"t other
ded"ctions than those which arise fro! leiti!ate e)penses& credits and i!prove!ents& save in the
case where the testator has provided otherwise. (/3')
Art. 3,,. The second heir shall ac0"ire a riht to the s"ccession fro! the ti!e of the testator;s
death& even tho"h he sho"ld die before the fid"ciary. The riht of the second heir shall pass to his
heirs. (/3*)
Art. 3,/. The followin shall not take effect<
(1) Aideico!!issary s"bstit"tions which are not !ade in an e)press !anner& either by ivin the!
this na!e& or i!posin "pon the fid"ciary the absol"te obliation to deliver the property to a
second heir8
(2) Provisions which contain a perpet"al prohibition to alienate& and even a te!porary one& beyond
the li!it fi)ed in article 3,'8
(') Those which i!pose "pon the heir the chare of payin to vario"s persons s"ccessively& beyond
the li!it prescribed in article 3,'& a certain inco!e or pension8
(*) Those which leave to a person the whole part of the hereditary property in order that he !ay
apply or invest the sa!e accordin to secret instr"ctions co!!"nicated to hi! by the testator.
(/3+a)
Art. 3,3. The n"llity of the fideico!!issary s"bstit"tion does not pre."dice the validity of the
instit"tion of the heirs first desinated8 the fideico!!issary cla"se shall si!ply be considered as
not written. (/3,)
Art. 3,5. A provision whereby the testator leaves to a person the whole or part of the inheritance&
and to another the "s"fr"ct& shall be valid. (f he ives the "s"fr"ct to vario"s persons& not
si!"ltaneo"sly& b"t s"ccessively& the provisions of Article 3,' shall apply. (/3/a)
Art. 3/7. The dispositions of the testator declarin all or part of the estate inalienable for !ore than
twenty years are void. (n)

@:CT(#6 *. 1 Conditional Testa!entary Dispositions and Testa!entary Dispositions 2ith a Ter!

Art. 3/1. The instit"tion of an heir !ay be !ade conditionally& or for a certain p"rpose or ca"se.
(/57a)
Art. 3/2. The testator cannot i!pose any chare& condition& or s"bstit"tion whatsoever "pon the
leiti!es prescribed in this Code. @ho"ld he do so& the sa!e shall be considered as not i!posed.
(31'a)
Art. 3/'. (!possible conditions and those contrary to law or ood c"sto!s shall be considered as
not i!posed and shall in no !anner pre."dice the heir& even if the testator sho"ld otherwise
provide. (/52a)
Art. 3/*. An absol"te condition not to contract a first or s"bse0"ent !arriae shall be considered as
not written "nless s"ch condition has been i!posed on the widow or widower by the deceased
spo"se& or by the latter;s ascendants or descendants.
6evertheless& the riht of "s"fr"ct& or an allowance or so!e personal prestation !ay be devised or
be0"eathed to any person for the ti!e d"rin which he or she sho"ld re!ain "n!arried or in
widowhood. (/5'a)
Art. 3/+. Any disposition !ade "pon the condition that the heir shall !ake so!e provision in his
will in favor of the testator or of any other person shall be void. (/5*a)
Art. 3/,. Any p"rely potestative condition i!posed "pon an heir !"st be f"lfilled by hi! as soon
as he learns of the testator;s death.
This r"le shall not apply when the condition& already co!plied with& cannot be f"lfilled aain.
(/5+a)
Art. 3//. (f the condition is cas"al or !i)ed& it shall be s"fficient if it happens or be f"lfilled at any
ti!e before or after the death of the testator& "nless he has provided otherwise.
@ho"ld it have e)isted or sho"ld it have been f"lfilled at the ti!e the will was e)ec"ted and the
testator was "naware thereof& it shall be dee!ed as co!plied with.
(f he had knowlede thereof& the condition shall be considered f"lfilled only when it is of s"ch a
nat"re that it can no loner e)ist or be co!plied with aain. (/5,)
Art. 3/3. A disposition with a s"spensive ter! does not prevent the instit"ted heir fro! ac0"irin
his rihts and trans!ittin the! to his heirs even before the arrival of the ter!. (/55a)
Art. 3/5. (f the potestative condition i!posed "pon the heir is neative& or consists in not doin or
not ivin so!ethin& he shall co!ply by ivin a sec"rity that he will not do or ive that which
has been prohibited by the testator& and that in case of contravention he will ret"rn whatever he
!ay have received& toether with its fr"its and interests. (377a)
Art. 337. (f the heir be instit"ted "nder a s"spensive condition or ter!& the estate shall be placed
"nder ad!inistration "ntil the condition is f"lfilled& or "ntil it beco!es certain that it cannot be
f"lfilled& or "ntil the arrival of the ter!.
The sa!e shall be done if the heir does not ive the sec"rity re0"ired in the precedin article.
(371a)
Art. 331. The appoint!ent of the ad!inistrator of the estate !entioned in the precedin article& as
well as the !anner of the ad!inistration and the rihts and obliations of the ad!inistrator shall be
overned by the -"les of Co"rt. (37*a)
Art. 332. The state!ent of the ob.ect of the instit"tion& or the application of the property left by the
testator& or the chare i!posed by hi!& shall not be considered as a condition "nless it appears that
s"ch was his intention.
That which has been left in this !anner !ay be clai!ed at once provided that the instit"ted heir or
his heirs ive sec"rity for co!pliance with the wishes of the testator and for the ret"rn of anythin
he or they !ay receive& toether with its fr"its and interests& if he or they sho"ld disreard this
obliation. (/5/a)
Art. 33'. 2hen witho"t the fa"lt of the heir& an instit"tion referred to in the precedin article
cannot take effect in the e)act !anner stated by the testator& it shall be co!plied with in a !anner
!ost analoo"s to and in confor!ity with his wishes.
(f the person interested in the condition sho"ld prevent its f"lfill!ent& witho"t the fa"lt of the heir&
the condition shall be dee!ed to have been co!plied with. (/53a)
Art. 33*. Conditions i!posed by the testator "pon the heirs shall be overned by the r"les
established for conditional obliations in all !atters not provided for by this @ection. (/51a)
Art. 33+. The desination of the day or ti!e when the effects of the instit"tion of an heir shall
co!!ence or cease shall be valid.
(n both cases& the leal heir shall be considered as called to the s"ccession "ntil the arrival of the
period or its e)piration. B"t in the first case he shall not enter into possession of the property "ntil
after havin iven s"fficient sec"rity& with the intervention of the instit"ted heir. (37+)

@:CT(#6 +. 1 Leiti!e

Art. 33,. Leiti!e is that part of the testator;s property which he cannot dispose of beca"se the law
has reserved it for certain heirs who are& therefore& called co!p"lsory heirs. (37,)
Art. 33/. The followin are co!p"lsory heirs<
(1) Leiti!ate children and descendants& with respect to their leiti!ate parents and ascendants8
(2) (n defa"lt of the foreoin& leiti!ate parents and ascendants& with respect to their leiti!ate
children and descendants8
(') The widow or widower8
(*) Acknowleded nat"ral children& and nat"ral children by leal fiction8
(+) #ther illeiti!ate children referred to in Article 23/.
Co!p"lsory heirs !entioned in 6os. '& *& and + are not e)cl"ded by those in 6os. 1 and 28 neither
do they e)cl"de one another.
(n all cases of illeiti!ate children& their filiation !"st be d"ly proved.
The father or !other of illeiti!ate children of the three classes !entioned& shall inherit fro! the!
in the !anner and to the e)tent established by this Code. (37/a)
Art. 333. The leiti!e of leiti!ate children and descendants consists of one1half of the hereditary
estate of the father and of the !other.
The latter !ay freely dispose of the re!ainin half& s"b.ect to the rihts of illeiti!ate children and
of the s"rvivin spo"se as hereinafter provided. (373a)
Art. 335. The leiti!e of leiti!ate parents or ascendants consists of one1half of the hereditary
estates of their children and descendants.
The children or descendants !ay freely dispose of the other half& s"b.ect to the rihts of
illeiti!ate children and of the s"rvivin spo"se as hereinafter provided. (375a)
Art. 357. The leiti!e reserved for the leiti!ate parents shall be divided between the! e0"ally8 if
one of the parents sho"ld have died& the whole shall pass to the s"rvivor.
(f the testator leaves neither father nor !other& b"t is s"rvived by ascendants of e0"al deree of the
paternal and !aternal lines& the leiti!e shall be divided e0"ally between both lines. (f the
ascendants sho"ld be of different derees& it shall pertain entirely to the ones nearest in deree of
either line. (317)
Art. 351. The ascendant who inherits fro! his descendant any property which the latter !ay have
ac0"ired by rat"ito"s title fro! another ascendant& or a brother or sister& is oblied to reserve s"ch
property as he !ay have ac0"ired by operation of law for the benefit of relatives who are within the
third deree and who belon to the line fro! which said property ca!e. (3/1)
Art. 352. (f only one leiti!ate child or descendant of the deceased s"rvives& the widow or
widower shall be entitled to one1fo"rth of the hereditary estate. (n case of a leal separation& the
s"rvivin spo"se !ay inherit if it was the deceased who had iven ca"se for the sa!e.
(f there are two or !ore leiti!ate children or descendants& the s"rvivin spo"se shall be entitled to
a portion e0"al to the leiti!e of each of the leiti!ate children or descendants.
(n both cases& the leiti!e of the s"rvivin spo"se shall be taken fro! the portion that can be freely
disposed of by the testator. (3'*a)
Art. 35'. (f the testator leaves no leiti!ate descendants& b"t leaves leiti!ate ascendants& the
s"rvivin spo"se shall have a riht to one1fo"rth of the hereditary estate.
This fo"rth shall be taken fro! the free portion of the estate. (3',a)
Art. 35*. (f the testator leaves illeiti!ate children& the s"rvivin spo"se shall be entitled to one1
third of the hereditary estate of the deceased and the illeiti!ate children to another third. The
re!ainin third shall be at the free disposal of the testator. (n)
Art. 35+. The leiti!e of each of the acknowleded nat"ral children and each of the nat"ral
children by leal fiction shall consist of one1half of the leiti!e of each of the leiti!ate children
or descendants.
The leiti!e of an illeiti!ate child who is neither an acknowleded nat"ral& nor a nat"ral child by
leal fiction& shall be e0"al in every case to fo"r1fifths of the leiti!e of an acknowleded nat"ral
child.
The leiti!e of the illeiti!ate children shall be taken fro! the portion of the estate at the free
disposal of the testator& provided that in no case shall the total leiti!e of s"ch illeiti!ate children
e)ceed that free portion& and that the leiti!e of the s"rvivin spo"se !"st first be f"lly satisfied.
(3*7a)
Art. 35,. (lleiti!ate children who !ay s"rvive with leiti!ate parents or ascendants of the
deceased shall be entitled to one1fo"rth of the hereditary estate to be taken fro! the portion at the
free disposal of the testator. (3*1a)
Art. 35/. 2hen the widow or widower s"rvives with leiti!ate children or descendants& and
acknowleded nat"ral children& or nat"ral children by leal fiction& s"ch s"rvivin spo"se shall be
entitled to a portion e0"al to the leiti!e of each of the leiti!ate children which !"st be taken
fro! that part of the estate which the testator can freely dispose of. (n)
Art. 353. (f the widow or widower s"rvives with leiti!ate children or descendants& and with
illeiti!ate children other than acknowleded nat"ral& or nat"ral children by leal fiction& the share
of the s"rvivin spo"se shall be the sa!e as that provided in the precedin article. (n)
Art. 355. 2hen the widow or widower s"rvives with leiti!ate parents or ascendants and with
illeiti!ate children& s"ch s"rvivin spo"se shall be entitled to one1eihth of the hereditary estate
of the deceased which !"st be taken fro! the free portion& and the illeiti!ate children shall be
entitled to one1fo"rth of the estate which shall be taken also fro! the disposable portion. The
testator !ay freely dispose of the re!ainin one1eihth of the estate. (n)
Art. 577. (f the only s"rvivor is the widow or widower& she or he shall be entitled to one1half of the
hereditary estate of the deceased spo"se& and the testator !ay freely dispose of the other half.
(3'/a)
(f the !arriae between the s"rvivin spo"se and the testator was sole!ni%ed in artic"lo !ortis&
and the testator died within three !onths fro! the ti!e of the !arriae& the leiti!e of the
s"rvivin spo"se as the sole heir shall be one1third of the hereditary estate& e)cept when they have
been livin as h"sband and wife for !ore than five years. (n the latter case& the leiti!e of the
s"rvivin spo"se shall be that specified in the precedin pararaph. (n)
Art. 571. 2hen the testator dies leavin illeiti!ate children and no other co!p"lsory heirs& s"ch
illeiti!ate children shall have a riht to one1half of the hereditary estate of the deceased.
The other half shall be at the free disposal of the testator. (3*2a)
Art. 572. The rihts of illeiti!ate children set forth in the precedin articles are trans!itted "pon
their death to their descendants& whether leiti!ate or illeiti!ate. (3*'a)
Art. 57'. The leiti!e of the parents who have an illeiti!ate child& when s"ch child leaves neither
leiti!ate descendants& nor a s"rvivin spo"se& nor illeiti!ate children& is one1half of the
hereditary estate of s"ch illeiti!ate child. (f only leiti!ate or illeiti!ate children are left& the
parents are not entitled to any leiti!e whatsoever. (f only the widow or widower s"rvives with
parents of the illeiti!ate child& the leiti!e of the parents is one1fo"rth of the hereditary estate of
the child& and that of the s"rvivin spo"se also one1fo"rth of the estate. (n)
Art. 57*. The testator cannot deprive his co!p"lsory heirs of their leiti!e& e)cept in cases
e)pressly specified by law.
6either can he i!pose "pon the sa!e any b"rden& enc"!brance& condition& or s"bstit"tion of any
kind whatsoever. (31'a)
Art. 57+. :very ren"nciation or co!pro!ise as reards a f"t"re leiti!e between the person owin
it and his co!p"lsory heirs is void& and the latter !ay clai! the sa!e "pon the death of the for!er8
b"t they !"st brin to collation whatever they !ay have received by virt"e of the ren"nciation or
co!pro!ise. (31,)
Art. 57,. Any co!p"lsory heir to who! the testator has left by any title less than the leiti!e
belonin to hi! !ay de!and that the sa!e be f"lly satisfied. (31+)
Art. 57/. Testa!entary dispositions that i!pair or di!inish the leiti!e of the co!p"lsory heirs
shall be red"ced on petition of the sa!e& insofar as they !ay be inofficio"s or e)cessive. (31/)
Art. 573. To deter!ine the leiti!e& the val"e of the property left at the death of the testator shall
be considered& ded"ctin all debts and chares& which shall not incl"de those i!posed in the will.
To the net val"e of the hereditary estate& shall be added the val"e of all donations by the testator
that are s"b.ect to collation& at the ti!e he !ade the!. (313a)
Art. 575. Donations iven to children shall be chared to their leiti!e.
Donations !ade to straners shall be chared to that part of the estate of which the testator co"ld
have disposed by his last will.
(nsofar as they !ay be inofficio"s or !ay e)ceed the disposable portion& they shall be red"ced
accordin to the r"les established by this Code. (315a)
Art. 517. Donations which an illeiti!ate child !ay have received d"rin the lifeti!e of his father
or !other& shall be chared to his leiti!e.
@ho"ld they e)ceed the portion that can be freely disposed of& they shall be red"ced in the !anner
prescribed by this Code. (3*/a)
Art. 511. After the leiti!e has been deter!ined in accordance with the three precedin articles&
the red"ction shall be !ade as follows<
(1) Donations shall be respected as lon as the leiti!e can be covered& red"cin or ann"llin& if
necessary& the devises or leacies !ade in the will8
(2) The red"ction of the devises or leacies shall be pro rata& witho"t any distinction whatever.
(f the testator has directed that a certain devise or leacy be paid in preference to others& it shall not
s"ffer any red"ction "ntil the latter have been applied in f"ll to the pay!ent of the leiti!e.
(') (f the devise or leacy consists of a "s"fr"ct or life ann"ity& whose val"e !ay be considered
reater than that of the disposable portion& the co!p"lsory heirs !ay choose between co!plyin
with the testa!entary provision and deliverin to the devisee or leatee the part of the inheritance
of which the testator co"ld freely dispose. (327a)
Art. 512. (f the devise s"b.ect to red"ction sho"ld consist of real property& which cannot be
conveniently divided& it shall o to the devisee if the red"ction does not absorb one1half of its
val"e8 and in a contrary case& to the co!p"lsory heirs8 b"t the for!er and the latter shall rei!b"rse
each other in cash for what respectively belons to the!.
The devisee who is entitled to a leiti!e !ay retain the entire property& provided its val"e does not
e)ceed that of the disposable portion and of the share pertainin to hi! as leiti!e. (321)
Art. 51'. (f the heirs or devisees do not choose to avail the!selves of the riht ranted by the
precedin article& any heir or devisee who did not have s"ch riht !ay e)ercise it8 sho"ld the latter
not !ake "se of it& the property shall be sold at p"blic a"ction at the instance of any one of the
interested parties. (322)
Art. 51*. The testator !ay devise and be0"eath the free portion as he !ay dee! fit. (n)

@:CT(#6 ,. 1 Disinheritance

Art. 51+. A co!p"lsory heir !ay& in conse0"ence of disinheritance& be deprived of his leiti!e& for
ca"ses e)pressly stated by law. (3*3a)
Art. 51,. Disinheritance can be effected only thro"h a will wherein the leal ca"se therefor shall
be specified. (3*5)
Art. 51/. The b"rden of provin the tr"th of the ca"se for disinheritance shall rest "pon the other
heirs of the testator& if the disinherited heir sho"ld deny it. (3+7)
Art. 513. Disinheritance witho"t a specification of the ca"se& or for a ca"se the tr"th of which& if
contradicted& is not proved& or which is not one of those set forth in this Code& shall ann"l the
instit"tion of heirs insofar as it !ay pre."dice the person disinherited8 b"t the devises and leacies
and other testa!entary dispositions shall be valid to s"ch e)tent as will not i!pair the leiti!e.
(3+1a)
Art. 515. The followin shall be s"fficient ca"ses for the disinheritance of children and
descendants& leiti!ate as well as illeiti!ate<
(1) 2hen a child or descendant has been fo"nd "ilty of an atte!pt aainst the life of the testator&
his or her spo"se& descendants& or ascendants8
(2) 2hen a child or descendant has acc"sed the testator of a cri!e for which the law prescribes
i!prison!ent for si) years or !ore& if the acc"sation has been fo"nd ro"ndless8
(') 2hen a child or descendant has been convicted of ad"ltery or conc"binae with the spo"se of
the testator8
(*) 2hen a child or descendant by fra"d& violence& inti!idation& or "nd"e infl"ence ca"ses the
testator to !ake a will or to chane one already !ade8
(+) A ref"sal witho"t ."stifiable ca"se to s"pport the parent or ascendant who disinherits s"ch child
or descendant8
(,) =altreat!ent of the testator by word or deed& by the child or descendant8
(/) 2hen a child or descendant leads a dishonorable or disracef"l life8
(3) Conviction of a cri!e which carries with it the penalty of civil interdiction. (/+,& 3+'& ,/*a)
Art. 527. The followin shall be s"fficient ca"ses for the disinheritance of parents or ascendants&
whether leiti!ate or illeiti!ate<
(1) 2hen the parents have abandoned their children or ind"ced their da"hters to live a corr"pt or
i!!oral life& or atte!pted aainst their virt"e8
(2) 2hen the parent or ascendant has been convicted of an atte!pt aainst the life of the testator&
his or her spo"se& descendants& or ascendants8
(') 2hen the parent or ascendant has acc"sed the testator of a cri!e for which the law prescribes
i!prison!ent for si) years or !ore& if the acc"sation has been fo"nd to be false8
(*) 2hen the parent or ascendant has been convicted of ad"ltery or conc"binae with the spo"se of
the testator8
(+) 2hen the parent or ascendant by fra"d& violence& inti!idation& or "nd"e infl"ence ca"ses the
testator to !ake a will or to chane one already !ade8
(,) The loss of parental a"thority for ca"ses specified in this Code8
(/) The ref"sal to s"pport the children or descendants witho"t ."stifiable ca"se8
(3) An atte!pt by one of the parents aainst the life of the other& "nless there has been a
reconciliation between the!. (/+,& 3+*& ,/*a)
Art. 521. The followin shall be s"fficient ca"ses for disinheritin a spo"se<
(1) 2hen the spo"se has been convicted of an atte!pt aainst the life of the testator& his or her
descendants& or ascendants8
(2) 2hen the spo"se has acc"sed the testator of a cri!e for which the law prescribes i!prison!ent
of si) years or !ore& and the acc"sation has been fo"nd to be false8
(') 2hen the spo"se by fra"d& violence& inti!idation& or "nd"e infl"ence ca"se the testator to !ake
a will or to chane one already !ade8
(*) 2hen the spo"se has iven ca"se for leal separation8
(+) 2hen the spo"se has iven ro"nds for the loss of parental a"thority8
(,) ?n."stifiable ref"sal to s"pport the children or the other spo"se. (/+,& 3++& ,/*a)
Art. 522. A s"bse0"ent reconciliation between the offender and the offended person deprives the
latter of the riht to disinherit& and renders ineffect"al any disinheritance that !ay have been !ade.
(3+,)
Art. 52'. The children and descendants of the person disinherited shall take his or her place and
shall preserve the rihts of co!p"lsory heirs with respect to the leiti!e8 b"t the disinherited
parent shall not have the "s"fr"ct or ad!inistration of the property which constit"tes the leiti!e.
(3+/)

@:CT(#6 /. 1 Leacies and Devises

Art. 52*. All thins and rihts which are within the co!!erce of !an be be0"eathed or devised.
(3,+a)
Art. 52+. A testator !ay chare with leacies and devises not only his co!p"lsory heirs b"t also
the leatees and devisees.
The latter shall be liable for the chare only to the e)tent of the val"e of the leacy or the devise
received by the!. The co!p"lsory heirs shall not be liable for the chare beyond the a!o"nt of the
free portion iven the!. (3+3a)
Art. 52,. 2hen the testator chares one of the heirs with a leacy or devise& he alone shall be
bo"nd.
@ho"ld he not chare anyone in partic"lar& all shall be liable in the sa!e proportion in which they
!ay inherit. (3+5)
Art. 52/. (f two or !ore heirs take possession of the estate& they shall be solidarily liable for the
loss or destr"ction of a thin devised or be0"eathed& even tho"h only one of the! sho"ld have
been nelient. (n)
Art. 523. The heir who is bo"nd to deliver the leacy or devise shall be liable in case of eviction& if
the thin is indeter!inate and is indicated only by its kind. (3,7)
Art. 525. (f the testator& heir& or leatee owns only a part of& or an interest in the thin be0"eathed&
the leacy or devise shall be "nderstood li!ited to s"ch part or interest& "nless the testator
e)pressly declares that he ives the thin in its entirety. (3,*a)
Art. 5'7. The leacy or devise of a thin belonin to another person is void& if the testator
erroneo"sly believed that the thin pertained to hi!. B"t if the thin be0"eathed& tho"h not
belonin to the testator when he !ade the will& afterwards beco!es his& by whatever title& the
disposition shall take effect. (3,2a)
Art. 5'1. (f the testator orders that a thin belonin to another be ac0"ired in order that it be iven
to a leatee or devisee& the heir "pon who! the obliation is i!posed or the estate !"st ac0"ire it
and ive the sa!e to the leatee or devisee8 b"t if the owner of the thin ref"ses to alienate the
sa!e& or de!ands an e)cessive price therefor& the heir or the estate shall only be oblied to ive the
."st val"e of the thin. (3,1a)
Art. 5'2. The leacy or devise of a thin which at the ti!e of the e)ec"tion of the will already
beloned to the leatee or devisee shall be ineffective& even tho"h another person !ay have so!e
interest therein.
(f the testator e)pressly orders that the thin be freed fro! s"ch interest or enc"!brance& the leacy
or devise shall be valid to that e)tent. (3,,a)
Art. 5''. (f the thin be0"eathed beloned to the leatee or devisee at the ti!e of the e)ec"tion of
the will& the leacy or devise shall be witho"t effect& even tho"h it !ay have s"bse0"ently
alienated by hi!.
(f the leatee or devisee ac0"ires it rat"ito"sly after s"ch ti!e& he can clai! nothin by virt"e of
the leacy or devise8 b"t if it has been ac0"ired by onero"s title he can de!and rei!b"rse!ent
fro! the heir or the estate. (3/3a)
Art. 5'*. (f the testator sho"ld be0"eath or devise so!ethin pleded or !ortaed to sec"re a
recoverable debt before the e)ec"tion of the will& the estate is oblied to pay the debt& "nless the
contrary intention appears.
The sa!e r"le applies when the thin is pleded or !ortaed after the e)ec"tion of the will.
Any other chare& perpet"al or te!porary& with which the thin be0"eathed is b"rdened& passes
with it to the leatee or devisee. (3,/a)
Art. 5'+. The leacy of a credit aainst a third person or of the re!ission or release of a debt of the
leatee shall be effective only as reards that part of the credit or debt e)istin at the ti!e of the
death of the testator.
(n the first case& the estate shall co!ply with the leacy by assinin to the leatee all rihts of
action it !ay have aainst the debtor. (n the second case& by ivin the leatee an ac0"ittance&
sho"ld he re0"est one.
(n both cases& the leacy shall co!prise all interests on the credit or debt which !ay be d"e the
testator at the ti!e of his death. (3/7a)
Art. 5',. The leacy referred to in the precedin article shall lapse if the testator& after havin !ade
it& sho"ld brin an action aainst the debtor for the pay!ent of his debt& even if s"ch pay!ent
sho"ld not have been effected at the ti!e of his death.
The leacy to the debtor of the thin pleded by hi! is "nderstood to dischare only the riht of
plede. (3/1)
Art. 5'/. A eneric leacy of release or re!ission of debts co!prises those e)istin at the ti!e of
the e)ec"tion of the will& b"t not s"bse0"ent ones. (3/2)
Art. 5'3. A leacy or devise !ade to a creditor shall not be applied to his credit& "nless the testator
so e)pressly declares.
(n the latter case& the creditor shall have the riht to collect the e)cess& if any& of the credit or of the
leacy or devise. (3'/a)
Art. 5'5. (f the testator orders the pay!ent of what he believes he owes b"t does not in fact owe&
the disposition shall be considered as not written. (f as reards a specified debt !ore than the
a!o"nt thereof is ordered paid& the e)cess is not d"e& "nless a contrary intention appears.
The foreoin provisions are witho"t pre."dice to the f"lfill!ent of nat"ral obliations. (n)
Art. 5*7. (n alternative leacies or devises& the choice is pres"!ed to be left to the heir "pon who!
the obliation to ive the leacy or devise !ay be i!posed& or the e)ec"tor or ad!inistrator of the
estate if no partic"lar heir is so oblied.
(f the heir& leatee or devisee& who !ay have been iven the choice& dies before !akin it& this
riht shall pass to the respective heirs.
#nce !ade& the choice is irrevocable.
(n the alternative leacies or devises& e)cept as herein provided& the provisions of this Code
re"latin obliations of the sa!e kind shall be observed& save s"ch !odifications as !ay appear
fro! the intention e)pressed by the testator. (3/*a)
Art. 5*1. A leacy of eneric personal property shall be valid even if there be no thins of the sa!e
kind in the estate.
A devise of indeter!inate real property shall be valid only if there be i!!ovable property of its
kind in the estate.
The riht of choice shall belon to the e)ec"tor or ad!inistrator who shall co!ply with the leacy
by the delivery of a thin which is neither of inferior nor of s"perior 0"ality. (3/+a)
Art. 5*2. 2henever the testator e)pressly leaves the riht of choice to the heir& or to the leatee or
devisee& the for!er !ay ive or the latter !ay choose whichever he !ay prefer. (3/,a)
Art. 5*'. (f the heir& leatee or devisee cannot !ake the choice& in case it has been ranted hi!& his
riht shall pass to his heirs8 b"t a choice once !ade shall be irrevocable. (3//a)
Art. 5**. A leacy for ed"cation lasts "ntil the leatee is of ae& or beyond the ae of !a.ority in
order that the leatee !ay finish so!e professional& vocational or eneral co"rse& provided he
p"rs"es his co"rse diliently.
A leacy for s"pport lasts d"rin the lifeti!e of the leatee& if the testator has not otherwise
provided.
(f the testator has not fi)ed the a!o"nt of s"ch leacies& it shall be fi)ed in accordance with the
social standin and the circ"!stances of the leatee and the val"e of the estate.
(f the testator or d"rin his lifeti!e "sed to ive the leatee a certain s"! of !oney or other thins
by way of s"pport& the sa!e a!o"nt shall be dee!ed be0"eathed& "nless it be !arkedly
disproportionate to the val"e of the estate. (3/5a)
Art. 5*+. (f a periodical pension& or a certain ann"al& !onthly& or weekly a!o"nt is be0"eathed& the
leatee !ay petition the co"rt for the first install!ent "pon the death of the testator& and for the
followin ones which shall be d"e at the beinnin of each period8 s"ch pay!ent shall not be
ret"rned& even tho"h the leatee sho"ld die before the e)piration of the period which has
co!!enced. (337a)
Art. 5*,. (f the thin be0"eathed sho"ld be s"b.ect to a "s"fr"ct& the leatee or devisee shall respect
s"ch riht "ntil it is leally e)tin"ished. (3,3a)
Art. 5*/. The leatee or devisee ac0"ires a riht to the p"re and si!ple leacies or devises fro! the
death of the testator& and trans!its it to his heirs. (331a)
Art. 5*3. (f the leacy or device is of a specific and deter!inate thin pertainin to the testator& the
leatee or devisee ac0"ires the ownership thereof "pon the death of the testator& as well as any
rowin fr"its& or "nborn offsprin of ani!als& or "ncollected inco!e8 b"t not the inco!e which
was d"e and "npaid before the latter;s death.
Aro! the !o!ent of the testator;s death& the thin be0"eathed shall be at the risk of the leatee or
devisee& who shall& therefore& bear its loss or deterioration& and shall be benefited by its increase or
i!prove!ent& witho"t pre."dice to the responsibility of the e)ec"tor or ad!inistrator. (332a)
Art. 5*5. (f the be0"est sho"ld not be of a specific and deter!inate thin& b"t is eneric or of
0"antity& its fr"its and interests fro! the ti!e of the death of the testator shall pertain to the leatee
or devisee if the testator has e)pressly so ordered. (33*a)
Art. 5+7. (f the estate sho"ld not be s"fficient to cover all the leacies or devises& their pay!ent
shall be !ade in the followin order<
(1) -e!"neratory leacies or devises8
(2) Leacies or devises declared by the testator to be preferential8
(') Leacies for s"pport8
(*) Leacies for ed"cation8
(+) Leacies or devises of a specific& deter!inate thin which for!s a part of the estate8
(,) All others pro rata. (33/a)
Art. 5+1. The thin be0"eathed shall be delivered with all its accessories and accessories and in the
condition in which it !ay be "pon the death of the testator. (33'a)
Art. 5+2. The heir& chared with a leacy or devise& or the e)ec"tor or ad!inistrator of the estate&
!"st deliver the very thin be0"eathed if he is able to do so and cannot dischare this obliation by
payin its val"e.
Leacies of !oney !"st be paid in cash& even tho"h the heir or the estate !ay not have any.
The e)penses necessary for the delivery of the thin be0"eathed shall be for the acco"nt of the heir
or the estate& b"t witho"t pre."dice to the leiti!e. (33,a)
Art. 5+'. The leatee or devisee cannot take possession of the thin be0"eathed "pon his own
a"thority& b"t shall re0"est its delivery and possession of the heir chared with the leacy or devise&
or of the e)ec"tor or ad!inistrator of the estate sho"ld he be a"thori%ed by the co"rt to deliver it.
(33+a)
Art. 5+*. The leatee or devisee cannot accept a part of the leacy or devise and rep"diate the
other& if the latter be onero"s.
@ho"ld he die before havin accepted the leacy or devise& leavin several heirs& so!e of the latter
!ay accept and the others !ay rep"diate the share respectively belonin to the! in the leacy or
devise. (335a)
Art. 5++. The leatee or devisee of two leacies or devises& one of which is onero"s& cannot
reno"nce the onero"s one and accept the other. (f both are onero"s or rat"ito"s& he shall be free to
accept or reno"nce both& or to reno"nce either. B"t if the testator intended that the two leacies or
devises sho"ld be inseparable fro! each other& the leatee or devisee !"st either accept or
reno"nce both.
Any co!p"lsory heir who is at the sa!e ti!e a leatee or devisee !ay waive the inheritance and
accept the leacy or devise& or reno"nce the latter and accept the for!er& or waive or accept both.
(357a)
Art. 5+,. (f the leatee or devisee cannot or is "nwillin to accept the leacy or devise& or if the
leacy or devise for any reason sho"ld beco!e ineffective& it shall be !ered into the !ass of the
estate& e)cept in cases of s"bstit"tion and of the riht of accretion. (333a)
Art. 5+/. The leacy or devise shall be witho"t effect<
(1) (f the testator transfor!s the thin be0"eathed in s"ch a !anner that it does not retain either the
for! or the deno!ination it had8
(2) (f the testator by any title or for any ca"se alienates the thin be0"eathed or any part thereof& it
bein "nderstood that in the latter case the leacy or devise shall be witho"t effect only with
respect to the part th"s alienated. (f after the alienation the thin sho"ld aain belon to the testator&
even if it be by reason of n"llity of the contract& the leacy or devise shall not thereafter be valid&
"nless the reac0"isition shall have been effected by virt"e of the e)ercise of the riht of rep"rchase8
(') (f the thin be0"eathed is totally lost d"rin the lifeti!e of the testator& or after his death
witho"t the heir;s fa"lt. 6evertheless& the person oblied to pay the leacy or devise shall be liable
for eviction if the thin be0"eathed sho"ld not have been deter!inate as to its kind& in accordance
with the provisions of Article 523. (3,5a)
Art. 5+3. A !istake as to the na!e of the thin be0"eathed or devised& is of no conse0"ence& if it is
possible to identify the thin which the testator intended to be0"eath or devise. (n)
Art. 5+5. A disposition !ade in eneral ter!s in favor of the testator;s relatives shall be "nderstood
to be in favor of those nearest in deree. (/+1)

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@:CT(#6 1. 1 $eneral Provisions

Art. 5,7. Leal or intestate s"ccession takes place<
(1) (f a person dies witho"t a will& or with a void will& or one which has s"bse0"ently lost its
validity8
(2) 2hen the will does not instit"te an heir to& or dispose of all the property belonin to the
testator. (n s"ch case& leal s"ccession shall take place only with respect to the property of which
the testator has not disposed8
(') (f the s"spensive condition attached to the instit"tion of heir does not happen or is not f"lfilled&
or if the heir dies before the testator& or rep"diates the inheritance& there bein no s"bstit"tion& and
no riht of accretion takes place8
(*) 2hen the heir instit"ted is incapable of s"cceedin& e)cept in cases provided in this Code.
(512a)
Art. 5,1. (n defa"lt of testa!entary heirs& the law vests the inheritance& in accordance with the r"les
hereinafter set forth& in the leiti!ate and illeiti!ate relatives of the deceased& in the s"rvivin
spo"se& and in the @tate. (51'a)
Art. 5,2. (n every inheritance& the relative nearest in deree e)cl"des the !ore distant ones& savin
the riht of representation when it properly takes place.
-elatives in the sa!e deree shall inherit in e0"al shares& s"b.ect to the provisions of article 177,
with respect to relatives of the f"ll and half blood& and of Article 53/& pararaph 2& concernin
division between the paternal and !aternal lines. (512a)

@?B@:CT(#6 1. 1 -elationship

Art. 5,'. Pro)i!ity of relationship is deter!ined by the n"!ber of enerations. :ach eneration
for!s a deree. (51+)
Art. 5,*. A series of derees for!s a line& which !ay be either direct or collateral.
A direct line is that constit"ted by the series of derees a!on ascendants and descendants.
A collateral line is that constit"ted by the series of derees a!on persons who are not ascendants
and descendants& b"t who co!e fro! a co!!on ancestor. (51,a)
Art. 5,+. The direct line is either descendin or ascendin.
The for!er "nites the head of the fa!ily with those who descend fro! hi!.
The latter binds a person with those fro! who! he descends. (51/)
Art. 5,,. (n the line& as !any derees are co"nted as there are enerations or persons& e)cl"din the
proenitor.
(n the direct line& ascent is !ade to the co!!on ancestor. Th"s& the child is one deree re!oved
fro! the parent& two fro! the randfather& and three fro! the reat1randparent.
(n the collateral line& ascent is !ade to the co!!on ancestor and then descent is !ade to the person
with who! the co!p"tation is to be !ade. Th"s& a person is two derees re!oved fro! his brother&
three fro! his "ncle& who is the brother of his father& fo"r fro! his first co"sin& and so forth. (513a)
Art. 5,/. A"ll blood relationship is that e)istin between persons who have the sa!e father and the
sa!e !other.
9alf blood relationship is that e)istin between persons who have the sa!e father& b"t not the sa!e
!other& or the sa!e !other& b"t not the sa!e father. (527a)
Art. 5,3. (f there are several relatives of the sa!e deree& and one or so!e of the! are "nwillin or
incapacitated to s"cceed& his portion shall accr"e to the others of the sa!e deree& save the riht of
representation when it sho"ld take place. (522)
Art. 5,5. (f the inheritance sho"ld be rep"diated by the nearest relative& sho"ld there be one only&
or by all the nearest relatives called by law to s"cceed& sho"ld there be several& those of the
followin deree shall inherit in their own riht and cannot represent the person or persons
rep"diatin the inheritance. (52')

@?B@:CT(#6 2. 1 -iht of -epresentation

Art. 5/7. -epresentation is a riht created by fiction of law& by virt"e of which the representative is
raised to the place and the deree of the person represented& and ac0"ires the rihts which the latter
wo"ld have if he were livin or if he co"ld have inherited. (5*2a)
Art. 5/1. The representative is called to the s"ccession by the law and not by the person
represented. The representative does not s"cceed the person represented b"t the one who! the
person represented wo"ld have s"cceeded. (n)
Art. 5/2. The riht of representation takes place in the direct descendin line& b"t never in the
ascendin.
(n the collateral line& it takes place only in favor of the children of brothers or sisters& whether they
be of the f"ll or half blood. (52+)
Art. 5/'. (n order that representation !ay take place& it is necessary that the representative hi!self
be capable of s"cceedin the decedent. (n)
Art. 5/*. 2henever there is s"ccession by representation& the division of the estate shall be !ade
per stirpes& in s"ch !anner that the representative or representatives shall not inherit !ore than
what the person they represent wo"ld inherit& if he were livin or co"ld inherit. (52,a)
Art. 5/+. 2hen children of one or !ore brothers or sisters of the deceased s"rvive& they shall
inherit fro! the latter by representation& if they s"rvive with their "ncles or a"nts. B"t if they alone
s"rvive& they shall inherit in e0"al portions. (52/)
Art. 5/,. A person !ay represent hi! whose inheritance he has reno"nced. (523a)
Art. 5//. 9eirs who rep"diate their share !ay not be represented. (525a)

@:CT(#6 2. 1 #rder of (ntestate @"ccession

@?B@:CT(#6 1. 1 Descendin Direct Line

Art. 5/3. @"ccession pertains& in the first place& to the descendin direct line. (5'7)
Art. 5/5. Leiti!ate children and their descendants s"cceed the parents and other ascendants&
witho"t distinction as to se) or ae& and even if they sho"ld co!e fro! different !arriaes.
An adopted child s"cceeds to the property of the adoptin parents in the sa!e !anner as a
leiti!ate child. (5'1a)
Art. 537. The children of the deceased shall always inherit fro! hi! in their own riht& dividin the
inheritance in e0"al shares. (5'2)
Art. 531. @ho"ld children of the deceased and descendants of other children who are dead& s"rvive&
the for!er shall inherit in their own riht& and the latter by riht of representation. (5'*a)
Art. 532. The randchildren and other descendants shall inherit by riht of representation& and if
any one of the! sho"ld have died& leavin several heirs& the portion pertainin to hi! shall be
divided a!on the latter in e0"al portions. (5'')
Art. 53'. (f illeiti!ate children s"rvive with leiti!ate children& the shares of the for!er shall be
in the proportions prescribed by Article 35+. (n)
Art. 53*. (n case of the death of an adopted child& leavin no children or descendants& his parents
and relatives by consan"inity and not by adoption& shall be his leal heirs. (n)

@?B@:CT(#6 2. 1 Ascendin Direct Line

Art. 53+. (n defa"lt of leiti!ate children and descendants of the deceased& his parents and
ascendants shall inherit fro! hi!& to the e)cl"sion of collateral relatives. (5'+a)
Art. 53,. The father and !other& if livin& shall inherit in e0"al shares.
@ho"ld one only of the! s"rvive& he or she shall s"cceed to the entire estate of the child. (5',)
Art. 53/. (n defa"lt of the father and !other& the ascendants nearest in deree shall inherit.
@ho"ld there be !ore than one of e0"al deree belonin to the sa!e line they shall divide the
inheritance per capita8 sho"ld they be of different lines b"t of e0"al deree& one1half shall o to the
paternal and the other half to the !aternal ascendants. (n each line the division shall be !ade per
capita. (5'/)

@?B@:CT(#6 '. 1 (lleiti!ate Children

Art. 533. (n the absence of leiti!ate descendants or ascendants& the illeiti!ate children shall
s"cceed to the entire estate of the deceased. (5'5a)
Art. 535. (f& toether with illeiti!ate children& there sho"ld s"rvive descendants of another
illeiti!ate child who is dead& the for!er shall s"cceed in their own riht and the latter by riht of
representation. (5*7a)
Art. 557. The hereditary rihts ranted by the two precedin articles to illeiti!ate children shall
be trans!itted "pon their death to their descendants& who shall inherit by riht of representation
fro! their deceased randparent. (5*1a)
Art. 551. (f leiti!ate ascendants are left& the illeiti!ate children shall divide the inheritance with
the!& takin one1half of the estate& whatever be the n"!ber of the ascendants or of the illeiti!ate
children. (5*213*1a)
Art. 552. An illeiti!ate child has no riht to inherit ab intestato fro! the leiti!ate children and
relatives of his father or !other8 nor shall s"ch children or relatives inherit in the sa!e !anner
fro! the illeiti!ate child. (5*'a)
Art. 55'. (f an illeiti!ate child sho"ld die witho"t iss"e& either leiti!ate or illeiti!ate& his father
or !other shall s"cceed to his entire estate8 and if the child;s filiation is d"ly proved as to both
parents& who are both livin& they shall inherit fro! hi! share and share alike. (5**)
Art. 55*. (n defa"lt of the father or !other& an illeiti!ate child shall be s"cceeded by his or her
s"rvivin spo"se who shall be entitled to the entire estate.
(f the widow or widower sho"ld s"rvive with brothers and sisters& nephews and nieces& she or he
shall inherit one1half of the estate& and the latter the other half. (5*+a)

@?B@:CT(#6 *. 1 @"rvivin @po"se

Art. 55+. (n the absence of leiti!ate descendants and ascendants& and illeiti!ate children and
their descendants& whether leiti!ate or illeiti!ate& the s"rvivin spo"se shall inherit the entire
estate& witho"t pre."dice to the rihts of brothers and sisters& nephews and nieces& sho"ld there be
any& "nder article 1771. (5*,a)
Art. 55,. (f a widow or widower and leiti!ate children or descendants are left& the s"rvivin
spo"se has in the s"ccession the sa!e share as that of each of the children. (3'*a)
Art. 55/. 2hen the widow or widower s"rvives with leiti!ate parents or ascendants& the
s"rvivin spo"se shall be entitled to one1half of the estate& and the leiti!ate parents or ascendants
to the other half. (3',a)
Art. 553. (f a widow or widower s"rvives with illeiti!ate children& s"ch widow or widower shall
be entitled to one1half of the inheritance& and the illeiti!ate children or their descendants& whether
leiti!ate or illeiti!ate& to the other half. (n)
Art. 555. 2hen the widow or widower s"rvives with leiti!ate children or their descendants and
illeiti!ate children or their descendants& whether leiti!ate or illeiti!ate& s"ch widow or
widower shall be entitled to the sa!e share as that of a leiti!ate child. (n)
Art. 1777. (f leiti!ate ascendants& the s"rvivin spo"se& and illeiti!ate children are left& the
ascendants shall be entitled to one1half of the inheritance& and the other half shall be divided
between the s"rvivin spo"se and the illeiti!ate children so that s"ch widow or widower shall
have one1fo"rth of the estate& and the illeiti!ate children the other fo"rth. (3*1a)
Art. 1771. @ho"ld brothers and sisters or their children s"rvive with the widow or widower& the
latter shall be entitled to one1half of the inheritance and the brothers and sisters or their children to
the other half. (5+'& 3'/a)
Art. 1772. (n case of a leal separation& if the s"rvivin spo"se ave ca"se for the separation& he or
she shall not have any of the rihts ranted in the precedin articles. (n)

@?B@:CT(#6 +. 1 Collateral -elatives

Art. 177'. (f there are no descendants& ascendants& illeiti!ate children& or a s"rvivin spo"se& the
collateral relatives shall s"cceed to the entire estate of the deceased in accordance with the
followin articles. (5*,a)
Art. 177*. @ho"ld the only s"rvivors be brothers and sisters of the f"ll blood& they shall inherit in
e0"al shares. (5*/)
Art. 177+. @ho"ld brothers and sisters s"rvive toether with nephews and nieces& who are the
children of the descendant;s brothers and sisters of the f"ll blood& the for!er shall inherit per
capita& and the latter per stirpes. (5*3)
Art. 177,. @ho"ld brother and sisters of the f"ll blood s"rvive toether with brothers and sisters of
the half blood& the for!er shall be entitled to a share do"ble that of the latter. (5*5)
Art. 177/. (n case brothers and sisters of the half blood& so!e on the father;s and so!e on the
!other;s side& are the only s"rvivors& all shall inherit in e0"al shares witho"t distinction as to the
oriin of the property. (5+7)
Art. 1773. Children of brothers and sisters of the half blood shall s"cceed per capita or per stirpes&
in accordance with the r"les laid down for the brothers and sisters of the f"ll blood. (51+)
Art. 1775. @ho"ld there be neither brothers nor sisters nor children of brothers or sisters& the other
collateral relatives shall s"cceed to the estate.
The latter shall s"cceed witho"t distinction of lines or preference a!on the! by reason of
relationship by the whole blood. (5+*a)
Art. 1717. The riht to inherit ab intestato shall not e)tend beyond the fifth deree of relationship
in the collateral line. (5++a)

@?B@:CT(#6 ,. 1 The @tate

Art. 1711. (n defa"lt of persons entitled to s"cceed in accordance with the provisions of the
precedin @ections& the @tate shall inherit the whole estate. (5+,a)
Art. 1712. (n order that the @tate !ay take possession of the property !entioned in the precedin
article& the pertinent provisions of the -"les of Co"rt !"st be observed. (5+3a)
Art. 171'. After the pay!ent of debts and chares& the personal property shall be assined to the
!"nicipality or city where the deceased last resided in the Philippines& and the real estate to the
!"nicipalities or cities& respectively& in which the sa!e is sit"ated.
(f the deceased never resided in the Philippines& the whole estate shall be assined to the respective
!"nicipalities or cities where the sa!e is located.
@"ch estate shall be for the benefit of p"blic schools& and p"blic charitable instit"tions and centers&
in s"ch !"nicipalities or cities. The co"rt shall distrib"te the estate as the respective needs of each
beneficiary !ay warrant.
The co"rt& at the instance of an interested party& or on its own !otion& !ay order the establish!ent
of a per!anent tr"st& so that only the inco!e fro! the property shall be "sed. (5+,a)
Art. 171*. (f a person leally entitled to the estate of the deceased appears and files a clai! thereto
with the co"rt within five years fro! the date the property was delivered to the @tate& s"ch person
shall be entitled to the possession of the sa!e& or if sold the !"nicipality or city shall be
acco"ntable to hi! for s"ch part of the proceeds as !ay not have been lawf"lly spent. (n)

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@:CT(#6 1. 1 -iht of Accretion

Art. 171+. Accretion is a riht by virt"e of which& when two or !ore persons are called to the sa!e
inheritance& devise or leacy& the part assined to the one who reno"nces or cannot receive his
share& or who died before the testator& is added or incorporated to that of his co1heirs& co1devisees&
or co1leatees. (n)
Art. 171,. (n order that the riht of accretion !ay take place in a testa!entary s"ccession& it shall
be necessary<
(1) That two or !ore persons be called to the sa!e inheritance& or to the sa!e portion thereof& pro
indiviso8 and
(2) That one of the persons th"s called die before the testator& or reno"nce the inheritance& or be
incapacitated to receive it. (523a)
Art. 171/. The words "one1half for each" or "in e0"al shares" or any others which& tho"h
desinatin an ali0"ot part& do not identify it by s"ch description as shall !ake each heir the
e)cl"sive owner of deter!inate property& shall not e)cl"de the riht of accretion.
(n case of !oney or f"nible oods& if the share of each heir is not ear!arked& there shall be a riht
of accretion. (53'a)
Art. 1713. (n leal s"ccession the share of the person who rep"diates the inheritance shall always
accr"e to his co1heirs. (531)
Art. 1715. The heirs to who! the portion oes by the riht of accretion take it in the sa!e
proportion that they inherit. (n)
Art. 1727. The heirs to who! the inheritance accr"es shall s"cceed to all the rihts and obliations
which the heir who reno"nced or co"ld not receive it wo"ld have had. (53*)
Art. 1721. A!on the co!p"lsory heirs the riht of accretion shall take place only when the free
portion is left to two or !ore of the!& or to any one of the! and to a straner.
@ho"ld the part rep"diated be the leiti!e& the other co1heirs shall s"cceed to it in their own riht&
and not by the riht of accretion. (53+)
Art. 1722. (n testa!entary s"ccession& when the riht of accretion does not take place& the vacant
portion of the instit"ted heirs& if no s"bstit"te has been desinated& shall pass to the leal heirs of
the testator& who shall receive it with the sa!e chares and obliations. (53,)
Art. 172'. Accretion shall also take place a!on devisees& leatees and "s"fr"ct"aries "nder the
sa!e conditions established for heirs. (53/a)

@:CT(#6 2. 1 Capacity to @"cceed by 2ill of by (ntestacy

Art. 172*. Persons not incapacitated by law !ay s"cceed by will or ab intestato.
The provisions relatin to incapacity by will are e0"ally applicable to intestate s"ccession. (/**&
51*)
Art. 172+. (n order to be capacitated to inherit& the heir& devisee or leatee !"st be livin at the
!o!ent the s"ccession opens& e)cept in case of representation& when it is proper.
A child already conceived at the ti!e of the death of the decedent is capable of s"cceedin
provided it be born later "nder the conditions prescribed in article *1. (n)
Art. 172,. A testa!entary disposition !ay be !ade to the @tate& provinces& !"nicipal corporations&
private corporations& orani%ations& or associations for reliio"s& scientific& c"lt"ral& ed"cational& or
charitable p"rposes.
All other corporations or entities !ay s"cceed "nder a will& "nless there is a provision to the
contrary in their charter or the laws of their creation& and always s"b.ect to the sa!e. (/*,a)
Art. 172/. The followin are incapable of s"cceedin<
(1) The priest who heard the confession of the testator d"rin his last illness& or the !inister of the
ospel who e)tended spirit"al aid to hi! d"rin the sa!e period8
(2) The relatives of s"ch priest or !inister of the ospel within the fo"rth deree& the ch"rch& order&
chapter& co!!"nity& orani%ation& or instit"tion to which s"ch priest or !inister !ay belon8
(') A "ardian with respect to testa!entary dispositions iven by a ward in his favor before the
final acco"nts of the "ardianship have been approved& even if the testator sho"ld die after the
approval thereof8 nevertheless& any provision !ade by the ward in favor of the "ardian when the
latter is his ascendant& descendant& brother& sister& or spo"se& shall be valid8
(*) Any attestin witness to the e)ec"tion of a will& the spo"se& parents& or children& or any one
clai!in "nder s"ch witness& spo"se& parents& or children8
(+) Any physician& s"reon& n"rse& health officer or dr"ist who took care of the testator d"rin his
last illness8
(,) (ndivid"als& associations and corporations not per!itted by law to inherit. (/*+& /+2& /+'& /+*a)
Art. 1723. The prohibitions !entioned in article /'5& concernin donations inter vivos shall apply
to testa!entary provisions. (n)
Art. 1725. @ho"ld the testator dispose of the whole or part of his property for prayers and pio"s
works for the benefit of his so"l& in eneral ter!s and witho"t specifyin its application& the
e)ec"tor& with the co"rt;s approval shall deliver one1half thereof or its proceeds to the ch"rch or
deno!ination to which the testator !ay belon& to be "sed for s"ch prayers and pio"s works& and
the other half to the @tate& for the p"rposes !entioned in Article 171'. (/*/a)
Art. 17'7. Testa!entary provisions in favor of the poor in eneral& witho"t desination of
partic"lar persons or of any co!!"nity& shall be dee!ed li!ited to the poor livin in the do!icile
of the testator at the ti!e of his death& "nless it sho"ld clearly appear that his intention was
otherwise.
The desination of the persons who are to be considered as poor and the distrib"tion of the
property shall be !ade by the person appointed by the testator for the p"rpose8 in defa"lt of s"ch
person& by the e)ec"tor& and sho"ld there be no e)ec"tor& by the ."stice of the peace& the !ayor& and
the !"nicipal treas"rer& who shall decide by a !a.ority of votes all 0"estions that !ay arise. (n all
these cases& the approval of the Co"rt of Airst (nstance shall be necessary.
The precedin pararaph shall apply when the testator has disposed of his property in favor of the
poor of a definite locality. (/*5a)
Art. 17'1. A testa!entary provision in favor of a dis0"alified person& even tho"h !ade "nder the
"ise of an onero"s contract& or !ade thro"h an inter!ediary& shall be void. (/++)
Art. 17'2. The followin are incapable of s"cceedin by reason of "nworthiness<
(1) Parents who have abandoned their children or ind"ced their da"hters to lead a corr"pt or
i!!oral life& or atte!pted aainst their virt"e8
(2) Any person who has been convicted of an atte!pt aainst the life of the testator& his or her
spo"se& descendants& or ascendants8
(') Any person who has acc"sed the testator of a cri!e for which the law prescribes i!prison!ent
for si) years or !ore& if the acc"sation has been fo"nd ro"ndless8
(*) Any heir of f"ll ae who& havin knowlede of the violent death of the testator& sho"ld fail to
report it to an officer of the law within a !onth& "nless the a"thorities have already taken action8
this prohibition shall not apply to cases wherein& accordin to law& there is no obliation to !ake an
acc"sation8
(+) Any person convicted of ad"ltery or conc"binae with the spo"se of the testator8
(,) Any person who by fra"d& violence& inti!idation& or "nd"e infl"ence sho"ld ca"se the testator
to !ake a will or to chane one already !ade8
(/) Any person who by the sa!e !eans prevents another fro! !akin a will& or fro! revokin one
already !ade& or who s"pplants& conceals& or alters the latter;s will8
(3) Any person who falsifies or fores a s"pposed will of the decedent. (/+,& ,/'& ,/*a)
Art. 17''. The ca"se of "nworthiness shall be witho"t effect if the testator had knowlede thereof
at the ti!e he !ade the will& or if& havin known of the! s"bse0"ently& he sho"ld condone the! in
writin. (/+/a)
Art. 17'*. (n order to ."de the capacity of the heir& devisee or leatee& his 0"alification at the ti!e
of the death of the decedent shall be the criterion.
(n cases fallin "nder 6os. 2& '& or + of Article 17'2& it shall be necessary to wait "ntil final
."d!ent is rendered& and in the case fallin "nder 6o. *& the e)piration of the !onth allowed for
the report.
(f the instit"tion& devise or leacy sho"ld be conditional& the ti!e of the co!pliance with the
condition shall also be considered. (/+3a)
Art. 17'+. (f the person e)cl"ded fro! the inheritance by reason of incapacity sho"ld be a child or
descendant of the decedent and sho"ld have children or descendants& the latter shall ac0"ire his
riht to the leiti!e.
The person so e)cl"ded shall not en.oy the "s"fr"ct and ad!inistration of the property th"s
inherited by his children. (/,1a)
Art. 17',. Alienations of hereditary property& and acts of ad!inistration perfor!ed by the e)cl"ded
heir& before the ."dicial order of e)cl"sion& are valid as to the third persons who acted in ood faith8
b"t the co1heirs shall have a riht to recover da!aes fro! the dis0"alified heir. (n)
Art. 17'/. The "nworthy heir who is e)cl"ded fro! the s"ccession has a riht to de!and inde!nity
or any e)penses inc"rred in the preservation of the hereditary property& and to enforce s"ch credits
as he !ay have aainst the estate. (n)
Art. 17'3. Any person incapable of s"ccession& who& disreardin the prohibition stated in the
precedin articles& entered into the possession of the hereditary property& shall be oblied to ret"rn
it toether it its accessions.
9e shall be liable for all the fr"its and rents he !ay have received& or co"ld have received thro"h
the e)ercise of d"e dilience. (/,7a)
Art. 17'5. Capacity to s"cceed is overned by the law of the nation of the decedent. (n)
Art. 17*7. The action for a declaration of incapacity and for the recovery of the inheritance& devise
or leacy shall be bro"ht within five years fro! the ti!e the dis0"alified person took possession
thereof. (t !ay be bro"ht by any one who !ay have an interest in the s"ccession. (/,2a)

@:CT(#6 '. 1 Acceptance and -ep"diation of the (nheritance

Art. 17*1. The acceptance or rep"diation of the inheritance is an act which is p"rely vol"ntary and
free. (533)
Art. 17*2. The effects of the acceptance or rep"diation shall always retroact to the !o!ent of the
death of the decedent. (535)
Art. 17*'. 6o person !ay accept or rep"diate an inheritance "nless he is certain of the death of the
person fro! who! he is to inherit& and of his riht to the inheritance. (551)
Art. 17**. Any person havin the free disposal of his property !ay accept or rep"diate an
inheritance.
Any inheritance left to !inors or incapacitated persons !ay be accepted by their parents or
"ardians. Parents or "ardians !ay rep"diate the inheritance left to their wards only by ."dicial
a"thori%ation.
The riht to accept an inheritance left to the poor shall belon to the persons desinated by the
testator to deter!ine the beneficiaries and distrib"te the property& or in their defa"lt& to those
!entioned in Article 17'7. (552a)
Art. 17*+. The lawf"l representatives of corporations& associations& instit"tions and entities
0"alified to ac0"ire property !ay accept any inheritance left to the latter& b"t in order to rep"diate
it& the approval of the co"rt shall be necessary. (55'a)
Art. 17*,. P"blic official establish!ents can neither accept nor rep"diate an inheritance witho"t the
approval of the overn!ent. (55*)
Art. 17*/. A !arried wo!an of ae !ay rep"diate an inheritance witho"t the consent of her
h"sband. (55+a)
Art. 17*3. Deaf1!"tes who can read and write !ay accept or rep"diate the inheritance personally
or thro"h an aent. @ho"ld they not be able to read and write& the inheritance shall be accepted by
their "ardians. These "ardians !ay rep"diate the sa!e with ."dicial approval. (55,a)
Art. 17*5. Acceptance !ay be e)press or tacit.
An e)press acceptance !"st be !ade in a p"blic or private doc"!ent.
A tacit acceptance is one res"ltin fro! acts by which the intention to accept is necessarily i!plied&
or which one wo"ld have no riht to do e)cept in the capacity of an heir.
Acts of !ere preservation or provisional ad!inistration do not i!ply an acceptance of the
inheritance if& thro"h s"ch acts& the title or capacity of an heir has not been ass"!ed. (555a)
Art. 17+7. An inheritance is dee!ed accepted<
(1) (f the heirs sells& donates& or assins his riht to a straner& or to his co1heirs& or to any of the!8
(2) (f the heir reno"nces the sa!e& even tho"h rat"ito"sly& for the benefit of one or !ore of his
co1heirs8
(') (f he reno"nces it for a price in favor of all his co1heirs indiscri!inately8 b"t if this ren"nciation
sho"ld be rat"ito"s& and the co1heirs in whose favor it is !ade are those "pon who! the portion
reno"nced sho"ld devolve by virt"e of accretion& the inheritance shall not be dee!ed as accepted.
(1777)
Art. 17+1. The rep"diation of an inheritance shall be !ade in a p"blic or a"thentic instr"!ent& or
by petition presented to the co"rt havin ."risdiction over the testa!entary or intestate proceedins.
(1773)
Art. 17+2. (f the heir rep"diates the inheritance to the pre."dice of his own creditors& the latter !ay
petition the co"rt to a"thori%e the! to accept it in the na!e of the heir.
The acceptance shall benefit the creditors only to an e)tent s"fficient to cover the a!o"nt of their
credits. The e)cess& sho"ld there be any& shall in no case pertain to the reno"ncer& b"t shall be
ad."dicated to the persons to who!& in accordance with the r"les established in this Code& it !ay
belon. (1771)
Art. 17+'. (f the heir sho"ld die witho"t havin accepted or rep"diated the inheritance his riht
shall be trans!itted to his heirs. (177,)
Art. 17+*. @ho"ld there be several heirs called to the inheritance& so!e of the! !ay accept and the
others !ay rep"diate it. (177/a)
Art. 17++. (f a person& who is called to the sa!e inheritance as an heir by will and ab intestato&
rep"diates the inheritance in his capacity as a testa!entary heir& he is "nderstood to have
rep"diated it in both capacities.
@ho"ld he rep"diate it as an intestate heir& witho"t knowlede of his bein a testa!entary heir& he
!ay still accept it in the latter capacity. (1775)
Art. 17+,. The acceptance or rep"diation of an inheritance& once !ade& is irrevocable& and cannot
be i!p"ned& e)cept when it was !ade thro"h any of the ca"ses that vitiate consent& or when an
"nknown will appears. (55/)
Art. 17+/. 2ithin thirty days after the co"rt has iss"ed an order for the distrib"tion of the estate in
accordance with the -"les of Co"rt& the heirs& devisees and leatees shall sinify to the co"rt
havin ."risdiction whether they accept or rep"diate the inheritance.
(f they do not do so within that ti!e& they are dee!ed to have accepted the inheritance. (n)

@:CT(#6 *. 1 :)ec"tors and Ad!inistrators

Art. 17+3. All !atters relatin to the appoint!ent& powers and d"ties of e)ec"tors and
ad!inistrators and concernin the ad!inistration of estates of deceased persons shall be overned
by the -"les of Co"rt. (n)
Art. 17+5. (f the assets of the estate of a decedent which can be applied to the pay!ent of debts are
not s"fficient for that p"rpose& the provisions of Articles 22'5 to 22+1 on Preference of Credits
shall be observed& provided that the e)penses referred to in Article 22**& 6o. 3& shall be those
involved in the ad!inistration of the decedent;s estate. (n)
Art. 17,7. A corporation or association a"thori%ed to cond"ct the b"siness of a tr"st co!pany in the
Philippines !ay be appointed as an e)ec"tor& ad!inistrator& "ardian of an estate& or tr"stee& in like
!anner as an individ"al8 b"t it shall not be appointed "ardian of the person of a ward. (n)

@:CT(#6 +. 1 Collation

Art. 17,1. :very co!p"lsory heir& who s"cceeds with other co!p"lsory heirs& !"st brin into the
!ass of the estate any property or riht which he !ay have received fro! the decedent& d"rin the
lifeti!e of the latter& by way of donation& or any other rat"ito"s title& in order that it !ay be
co!p"ted in the deter!ination of the leiti!e of each heir& and in the acco"nt of the partition.
(17'+a)
Art. 17,2. Collation shall not take place a!on co!p"lsory heirs if the donor sho"ld have so
e)pressly provided& or if the donee sho"ld rep"diate the inheritance& "nless the donation sho"ld be
red"ced as inofficio"s. (17',)
Art. 17,'. Property left by will is not dee!ed s"b.ect to collation& if the testator has not otherwise
provided& b"t the leiti!e shall in any case re!ain "ni!paired. (17'/)
Art. 17,*. 2hen the randchildren& who s"rvive with their "ncles& a"nts& or co"sins& inherit fro!
their randparents in representation of their father or !other& they shall brin to collation all that
their parents& if alive& wo"ld have been oblied to brin& even tho"h s"ch randchildren have not
inherited the property.
They shall also brin to collation all that they !ay have received fro! the decedent d"rin his
lifeti!e& "nless the testator has provided otherwise& in which case his wishes !"st be respected& if
the leiti!e of the co1heirs is not pre."diced. (17'3)
Art. 17,+. Parents are not oblied to brin to collation in the inheritance of their ascendants any
property which !ay have been donated by the latter to their children. (17'5)
Art. 17,,. 6either shall donations to the spo"se of the child be bro"ht to collation8 b"t if they
have been iven by the parent to the spo"ses .ointly& the child shall be oblied to brin to collation
one1half of the thin donated. (17*7)
Art. 17,/. :)penses for s"pport& ed"cation& !edical attendance& even in e)traordinary illness&
apprenticeship& ordinary e0"ip!ent& or c"sto!ary ifts are not s"b.ect to collation. (17*1)
Art. 17,3. :)penses inc"rred by the parents in ivin their children a professional& vocational or
other career shall not be bro"ht to collation "nless the parents so provide& or "nless they i!pair
the leiti!e8 b"t when their collation is re0"ired& the s"! which the child wo"ld have spent if he
had lived in the ho"se and co!pany of his parents shall be ded"cted therefro!. (17*2a)
Art. 17,5. Any s"!s paid by a parent in satisfaction of the debts of his children& election e)penses&
fines& and si!ilar e)penses shall be bro"ht to collation. (17*'a)
Art. 17/7. 2eddin ifts by parents and ascendants consistin of .ewelry& clothin& and o"tfit& shall
not be red"ced as inofficio"s e)cept insofar as they !ay e)ceed one1tenth of the s"! which is
disposable by will. (17**)
Art. 17/1. The sa!e thins donated are not to be bro"ht to collation and partition& b"t only their
val"e at the ti!e of the donation& even tho"h their ."st val"e !ay not then have been assessed.
Their s"bse0"ent increase or deterioration and even their total loss or destr"ction& be it accidental
or c"lpable& shall be for the benefit or acco"nt and risk of the donee. (17*+a)
Art. 17/2. (n the collation of a donation !ade by both parents& one1half shall be bro"ht to the
inheritance of the father& and the other half& to that of the !other. That iven by one alone shall be
bro"ht to collation in his or her inheritance. (17*,a)
Art. 17/'. The donee;s share of the estate shall be red"ced by an a!o"nt e0"al to that already
received by hi!8 and his co1heirs shall receive an e0"ivalent& as !"ch as possible& in property of
the sa!e nat"re& class and 0"ality. (17*/)
Art. 17/*. @ho"ld the provisions of the precedin article be i!practicable& if the property donated
was i!!ovable& the co1heirs shall be entitled to receive its e0"ivalent in cash or sec"rities& at the
rate of 0"otation8 and sho"ld there be neither cash or !arketable sec"rities in the estate& so !"ch of
the other property as !ay be necessary shall be sold at p"blic a"ction.
(f the property donated was !ovable& the co1heirs shall only have a riht to select an e0"ivalent of
other personal property of the inheritance at its ."st price. (17*3)
Art. 17/+. The fr"its and interest of the property s"b.ect to collation shall not pertain to the estate
e)cept fro! the day on which the s"ccession is opened.
Aor the p"rpose of ascertainin their a!o"nt& the fr"its and interest of the property of the estate of
the sa!e kind and 0"ality as that s"b.ect to collation shall be !ade the standard of assess!ent.
(17*5)
Art. 17/,. The co1heirs are bo"nd to rei!b"rse to the donee the necessary e)penses which he has
inc"rred for the preservation of the property donated to hi!& tho"h they !ay not have a"!ented
its val"e.
The donee who collates in kind an i!!ovable which has been iven to hi! !"st be rei!b"rsed by
his co1heirs for the i!prove!ents which have increased the val"e of the property& and which e)ist
at the ti!e the partition if effected.
As to works !ade on the estate for the !ere pleas"re of the donee& no rei!b"rse!ent is d"e hi!
for the!8 he has& however& the riht to re!ove the!& if he can do so witho"t in."rin the estate. (n)
Art. 17//. @ho"ld any 0"estion arise a!on the co1heirs "pon the obliation to brin to collation or
as to the thins which are s"b.ect to collation& the distrib"tion of the estate shall not be interr"pted
for this reason& provided ade0"ate sec"rity is iven. (17+7)

@:CT(#6 ,. 1 Partition and Distrib"tion of the :state

@?B@:CT(#6 1. 1 Partition

Art. 17/3. 2here there are two or !ore heirs& the whole estate of the decedent is& before its
partition& owned in co!!on by s"ch heirs& s"b.ect to the pay!ent of debts of the deceased. (n)
Art. 17/5. Partition& in eneral& is the separation& division and assin!ent of a thin held in
co!!on a!on those to who! it !ay belon. The thin itself !ay be divided& or its val"e. (n)
Art. 1737. @ho"ld a person !ake partition of his estate by an act inter vivos& or by will& s"ch
partition shall be respected& insofar as it does not pre."dice the leiti!e of the co!p"lsory heirs.
A parent who& in the interest of his or her fa!ily& desires to keep any aric"lt"ral& ind"strial& or
!an"fact"rin enterprise intact& !ay avail hi!self of the riht ranted hi! in this article& by
orderin that the leiti!e of the other children to who! the property is not assined& be paid in
cash. (17+,a)
Art. 1731. A person !ay& by an act inter vivos or !ortis ca"sa& intr"st the !ere power to !ake the
partition after his death to any person who is not one of the co1heirs.
The provisions of this and of the precedin article shall be observed even sho"ld there be a!on
the co1heirs a !inor or a person s"b.ect to "ardianship8 b"t the !andatary& in s"ch case& shall
!ake an inventory of the property of the estate& after notifyin the co1heirs& the creditors& and the
leatees or devisees. (17+/a)
Art. 1732. :very act which is intended to p"t an end to indivision a!on co1heirs and leatees or
devisees is dee!ed to be a partition& altho"h it sho"ld p"rport to be a sale& and e)chane& a
co!pro!ise& or any other transaction. (n)
Art. 173'. :very co1heir has a riht to de!and the division of the estate "nless the testator sho"ld
have e)pressly forbidden its partition& in which case the period of indivision shall not e)ceed
twenty years as provided in article *5*. This power of the testator to prohibit division applies to the
leiti!e.
:ven tho"h forbidden by the testator& the co1ownership ter!inates when any of the ca"ses for
which partnership is dissolved takes place& or when the co"rt finds for co!pellin reasons that
division sho"ld be ordered& "pon petition of one of the co1heirs. (17+1a)
Art. 173*. >ol"ntary heirs "pon who! so!e condition has been i!posed cannot de!and a partition
"ntil the condition has been f"lfilled8 b"t the other co1heirs !ay de!and it by ivin s"fficient
sec"rity for the rihts which the for!er !ay have in case the condition sho"ld be co!plied with&
and "ntil it is known that the condition has not been f"lfilled or can never be co!plied with& the
partition shall be "nderstood to be provisional. (17+*a)
Art. 173+. (n the partition of the estate& e0"ality shall be observed as far as possible& dividin the
property into lots& or assinin to each of the co1heirs thins of the sa!e nat"re& 0"ality and kind.
(17,1)
Art. 173,. @ho"ld a thin be indivisible& or wo"ld be !"ch i!paired by its bein divided& it !ay be
ad."dicated to one of the heirs& provided he shall pay the others the e)cess in cash.
6evertheless& if any of the heirs sho"ld de!and that the thin be sold at p"blic a"ction and that
straners be allowed to bid& this !"st be done. (17,2)
Art. 173/. (n the partition the co1heirs shall rei!b"rse one another for the inco!e and fr"its which
each one of the! !ay have received fro! any property of the estate& for any "sef"l and necessary
e)penses !ade "pon s"ch property& and for any da!ae thereto thro"h !alice or nelect. (17,')
Art. 1733. @ho"ld any of the heirs sell his hereditary rihts to a straner before the partition& any or
all of the co1heirs !ay be s"broated to the rihts of the p"rchaser by rei!b"rsin hi! for the price
of the sale& provided they do so within the period of one !onth fro! the ti!e they were notified in
writin of the sale by the vendor. (17,/a)
Art. 1735. The titles of ac0"isition or ownership of each property shall be delivered to the co1heir
to who! said property has been ad."dicated. (17,+a)
Art. 1757. 2hen the title co!prises two or !ore pieces of land which have been assined to two or
!ore co1heirs& or when it covers one piece of land which has been divided between two or !ore
co1heirs& the title shall be delivered to the one havin the larest interest& and a"thentic copies of
the title shall be f"rnished to the other co1heirs at the e)pense of the estate. (f the interest of each
co1heir sho"ld be the sa!e& the oldest shall have the title. (17,,a)

@?B@:CT(#6 2. 1 :ffects of Partition

Art. 1751. A partition leally !ade confers "pon each heir the e)cl"sive ownership of the property
ad."dicated to hi!. (17,3)
Art. 1752. After the partition has been !ade& the co1heirs shall be reciprocally bo"nd to warrant the
title to& and the 0"ality of& each property ad."dicated. (17,5a)
Art. 175'. The reciprocal obliation of warranty referred to in the precedin article shall be
proportionate to the respective hereditary shares of the co1heirs& b"t if any one of the! sho"ld be
insolvent& the other co1heirs shall be liable for his part in the sa!e proportion& ded"ctin the part
correspondin to the one who sho"ld be inde!nified.
Those who pay for the insolvent heir shall have a riht of action aainst hi! for rei!b"rse!ent&
sho"ld his financial condition i!prove. (17/1)
Art. 175*. An action to enforce the warranty a!on heirs !"st be bro"ht within ten years fro!
the date the riht of action accr"es. (n)
Art. 175+. (f a credit sho"ld be assined as collectible& the co1heirs shall not be liable for the
s"bse0"ent insolvency of the debtor of the estate& b"t only for his insolvency at the ti!e the
partition is !ade.
The warranty of the solvency of the debtor can only be enforced d"rin the five years followin the
partition.
Co1heirs do not warrant bad debts& if so known to& and accepted by& the distrib"tee. B"t if s"ch
debts are not assined to a co1heir& and sho"ld be collected& in whole or in part& the a!o"nt
collected shall be distrib"ted proportionately a!on the heirs. (17/2a)
Art. 175,. The obliation of warranty a!on co1heirs shall cease in the followin cases<
(1) 2hen the testator hi!self has !ade the partition& "nless it appears& or it !ay be reasonably
pres"!ed& that his intention was otherwise& b"t the leiti!e shall always re!ain "ni!paired8
(2) 2hen it has been so e)pressly stip"lated in the aree!ent of partition& "nless there has been
bad faith8
(') 2hen the eviction is d"e to a ca"se s"bse0"ent to the partition& or has been ca"sed by the fa"lt
of the distrib"tee of the property. (17/7a)
@?B@:CT(#6 '. 1 -escission and 6"llity of Partition

Art. 175/. A partition !ay be rescinded or ann"lled for the sa!e ca"ses as contracts. (17/'a)
Art. 1753. A partition& ."dicial or e)tra1."dicial& !ay also be rescinded on acco"nt of lesion& when
any one of the co1heirs received thins whose val"e is less& by at least one1fo"rth& than the share to
which he is entitled& considerin the val"e of the thins at the ti!e they were ad."dicated. (17/*a)
Art. 1755. The partition !ade by the testator cannot be i!p"ned on the ro"nd of lesion& e)cept
when the leiti!e of the co!p"lsory heirs is thereby pre."diced& or when it appears or !ay
reasonably be pres"!ed& that the intention of the testator was otherwise. (17/+)
Art. 1177. The action for rescission on acco"nt of lesion shall prescribe after fo"r years fro! the
ti!e the partition was !ade. (17/,)
Art. 1171. The heir who is s"ed shall have the option of inde!nifyin the plaintiff for the loss& or
consentin to a new partition.
(nde!nity !ay be !ade by pay!ent in cash or by the delivery of a thin of the sa!e kind and
0"ality as that awarded to the plaintiff.
(f a new partition is !ade& it shall affect neither those who have not been pre."diced nor those have
not received !ore than their ."st share. (17//a)
Art. 1172. An heir who has alienated the whole or a considerable part of the real property
ad."dicated to hi! cannot !aintain an action for rescission on the ro"nd of lesion& b"t he shall
have a riht to be inde!nified in cash. (17/3a)
Art. 117'. The o!ission of one or !ore ob.ects or sec"rities of the inheritance shall not ca"se the
rescission of the partition on the ro"nd of lesion& b"t the partition shall be co!pleted by the
distrib"tion of the ob.ects or sec"rities which have been o!itted. (17/5a)
Art. 117*. A partition !ade with preterition of any of the co!p"lsory heirs shall not be rescinded&
"nless it be proved that there was bad faith or fra"d on the part of the other persons interested8 b"t
the latter shall be proportionately oblied to pay to the person o!itted the share which belons to
hi!. (1737)
Art. 117+. A partition which incl"des a person believed to be an heir& b"t who is not& shall be void
only with respect to s"ch person. (1731a)

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Art. 117,. By prescription& one ac0"ires ownership and other real rihts thro"h the lapse of ti!e
in the !anner and "nder the conditions laid down by law.
(n the sa!e way& rihts and conditions are lost by prescription. (15'7a)
Art. 117/. Persons who are capable of ac0"irin property or rihts by the other leal !odes !ay
ac0"ire the sa!e by !eans of prescription.
=inors and other incapacitated persons !ay ac0"ire property or rihts by prescription& either
personally or thro"h their parents& "ardians or leal representatives. (15'1a)
Art. 1173. Prescription& both ac0"isitive and e)tinctive& r"ns aainst<
(1) =inors and other incapacitated persons who have parents& "ardians or other leal
representatives8
(2) Absentees who have ad!inistrators& either appointed by the! before their disappearance& or
appointed by the co"rts8
(') Persons livin abroad& who have !anaers or ad!inistrators8
(*) 4"ridical persons& e)cept the @tate and its s"bdivisions.
Persons who are dis0"alified fro! ad!inisterin their property have a riht to clai! da!aes fro!
their leal representatives whose nelience has been the ca"se of prescription. (15'2a)
Art. 1175. Prescription does not r"n between h"sband and wife& even tho"h there be a separation
of property areed "pon in the !arriae settle!ents or by ."dicial decree.
6either does prescription r"n between parents and children& d"rin the !inority or insanity of the
latter& and between "ardian and ward d"rin the contin"ance of the "ardianship. (n)
Art. 1117. Prescription& ac0"isitive and e)tinctive& r"ns in favor of& or aainst a !arried wo!an. (n)
Art. 1111. Prescription obtained by a co1proprietor or a co1owner shall benefit the others. (15'')
Art. 1112. Persons with capacity to alienate property !ay reno"nce prescription already obtained&
b"t not the riht to prescribe in the f"t"re.
Prescription is dee!ed to have been tacitly reno"nced when the ren"nciation res"lts fro! acts
which i!ply the abandon!ent of the riht ac0"ired. (15'+)
Art. 111'. All thins which are within the co!!erce of !en are s"sceptible of prescription& "nless
otherwise provided. Property of the @tate or any of its s"bdivisions not patri!onial in character
shall not be the ob.ect of prescription. (15',a)
Art. 111*. Creditors and all other persons interested in !akin the prescription effective !ay avail
the!selves thereof notwithstandin the e)press or tacit ren"nciation by the debtor or proprietor.
(15'/)
Art. 111+. The provisions of the present Title are "nderstood to be witho"t pre."dice to what in this
Code or in special laws is established with respect to specific cases of prescription. (15'3)
Art. 111,. Prescription already r"nnin before the effectivity of this Code shall be overned by
laws previo"sly in force8 b"t if since the ti!e this Code took effect the entire period herein re0"ired
for prescription sho"ld elapse& the present Code shall be applicable& even tho"h by the for!er
laws a loner period !iht be re0"ired. (15'5)

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Art. 111/. Ac0"isitive prescription of do!inion and other real rihts !ay be ordinary or
e)traordinary.
#rdinary ac0"isitive prescription re0"ires possession of thins in ood faith and with ."st title for
the ti!e fi)ed by law. (15*7a)
Art. 1113. Possession has to be in the concept of an owner& p"blic& peacef"l and "ninterr"pted.
(15*1)
Art. 1115. Acts of possessory character e)ec"ted in virt"e of license or by !ere tolerance of the
owner shall not be available for the p"rposes of possession. (15*2)
Art. 1127. Possession is interr"pted for the p"rposes of prescription& nat"rally or civilly. (15*')
Art. 1121. Possession is nat"rally interr"pted when thro"h any ca"se it sho"ld cease for !ore than
one year.
The old possession is not revived if a new possession sho"ld be e)ercised by the sa!e adverse
clai!ant. (15**a)
Art. 1122. (f the nat"ral interr"ption is for only one year or less& the ti!e elapsed shall be co"nted
in favor of the prescription. (n)
Art. 112'. Civil interr"ption is prod"ced by ."dicial s"!!ons to the possessor. (15*+a)
Art. 112*. 4"dicial s"!!ons shall be dee!ed not to have been iss"ed and shall not ive rise to
interr"ption<
(1) (f it sho"ld be void for lack of leal sole!nities8
(2) (f the plaintiff sho"ld desist fro! the co!plaint or sho"ld allow the proceedins to lapse8
(') (f the possessor sho"ld be absolved fro! the co!plaint.
(n all these cases& the period of the interr"ption shall be co"nted for the prescription. (15*,a)
Art. 112+. Any e)press or tacit reconition which the possessor !ay !ake of the owner;s riht also
interr"pts possession. (15*3)
Art. 112,. Aainst a title recorded in the -eistry of Property& ordinary prescription of ownership
or real rihts shall not take place to the pre."dice of a third person& e)cept in virt"e of another title
also recorded8 and the ti!e shall bein to r"n fro! the recordin of the latter.
As to lands reistered "nder the Land -eistration Act& the provisions of that special law shall
overn. (15*5a)
Art. 112/. The ood faith of the possessor consists in the reasonable belief that the person fro!
who! he received the thin was the owner thereof& and co"ld trans!it his ownership. (15+7a)
Art. 1123. The conditions of ood faith re0"ired for possession in Articles +2,& +2/& +23& and +25
of this Code are likewise necessary for the deter!ination of ood faith in the prescription of
ownership and other real rihts. (15+1)
Art. 1125. Aor the p"rposes of prescription& there is ."st title when the adverse clai!ant ca!e into
possession of the property thro"h one of the !odes reconi%ed by law for the ac0"isition of
ownership or other real rihts& b"t the rantor was not the owner or co"ld not trans!it any riht. (n)
Art. 11'7. The title for prescription !"st be tr"e and valid. (15+')
Art. 11'1. Aor the p"rposes of prescription& ."st title !"st be proved8 it is never pres"!ed. (15+*a)
Art. 11'2. The ownership of !ovables prescribes thro"h "ninterr"pted possession for fo"r years
in ood faith.
The ownership of personal property also prescribes thro"h "ninterr"pted possession for eiht
years& witho"t need of any other condition.
2ith reard to the riht of the owner to recover personal property lost or of which he has been
illeally deprived& as well as with respect to !ovables ac0"ired in a p"blic sale& fair& or !arket& or
fro! a !erchant;s store the provisions of Articles ++5 and 1+7+ of this Code shall be observed.
(15++a)
Art. 11''. =ovables possessed thro"h a cri!e can never be ac0"ired thro"h prescription by the
offender. (15+,a)
Art. 11'*. #wnership and other real rihts over i!!ovable property are ac0"ired by ordinary
prescription thro"h possession of ten years. (15+/a)
Art. 11'+. (n case the adverse clai!ant possesses by !istake an area reater& or less than that
e)pressed in his title& prescription shall be based on the possession. (n)
Art. 11',. Possession in warti!e& when the civil co"rts are not open& shall not be co"nted in favor
of the adverse clai!ant.
Art. 11'/. #wnership and other real rihts over i!!ovables also prescribe thro"h "ninterr"pted
adverse possession thereof for thirty years& witho"t need of title or of ood faith. (15+5a)
Art. 11'3. (n the co!p"tation of ti!e necessary for prescription the followin r"les shall be
observed<
(1) The present possessor !ay co!plete the period necessary for prescription by tackin his
possession to that of his rantor or predecessor in interest8
(2) (t is pres"!ed that the present possessor who was also the possessor at a previo"s ti!e& has
contin"ed to be in possession d"rin the intervenin ti!e& "nless there is proof to the contrary8
(') The first day shall be e)cl"ded and the last day incl"ded. (15,7a)
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Art. 11'5. Actions prescribe by the !ere lapse of ti!e fi)ed by law. (15,1)
Art. 11*7. Actions to recover !ovables shall prescribe eiht years fro! the ti!e the possession
thereof is lost& "nless the possessor has ac0"ired the ownership by prescription for a less period&
accordin to Articles 11'2& and witho"t pre."dice to the provisions of Articles ++5& 1+7+& and 11''.
(15,2a)
Art. 11*1. -eal actions over i!!ovables prescribe after thirty years.
This provision is witho"t pre."dice to what is established for the ac0"isition of ownership and other
real rihts by prescription. (15,')
Art. 11*2. A !ortae action prescribes after ten years. (15,*a)
Art. 11*'. The followin rihts& a!on others specified elsewhere in this Code& are not
e)tin"ished by prescription<
(1) To de!and a riht of way& re"lated in Article ,*58
(2) To brin an action to abate a p"blic or private n"isance. (n)
Art. 11**. The followin actions !"st be bro"ht within ten years fro! the ti!e the riht of action
accr"es<
(1) ?pon a written contract8
(2) ?pon an obliation created by law8
(') ?pon a ."d!ent. (n)
Art. 11*+. The followin actions !"st be co!!enced within si) years<
(1) ?pon an oral contract8
(2) ?pon a 0"asi1contract. (n)
Art. 11*,. The followin actions !"st be instit"ted within fo"r years<
(1) ?pon an in."ry to the rihts of the plaintiff8
(2) ?pon a 0"asi1delict8
9owever& when the action arises fro! or o"t of any act& activity& or cond"ct of any p"blic officer
involvin the e)ercise of powers or a"thority arisin fro! =artial Law incl"din the arrest&
detention andHor trial of the plaintiff& the sa!e !"st be bro"ht within one (1) year. (As a!ended
by PD 6o. 1/++& Dec. 2*& 1537.)
Art. 11*/. The followin actions !"st be filed within one year<
(1) Aor forcible entry and detainer8
(2) Aor defa!ation. (n)
Art. 11*3. The li!itations of action !entioned in Articles 11*7 to 11*2& and 11** to 11*/ are
witho"t pre."dice to those specified in other parts of this Code& in the Code of Co!!erce& and in
special laws. (n)
Art. 11*5. All other actions whose periods are not fi)ed in this Code or in other laws !"st be
bro"ht within five years fro! the ti!e the riht of action accr"es. (n)
Art. 11+7. The ti!e for prescription for all kinds of actions& when there is no special provision
which ordains otherwise& shall be co"nted fro! the day they !ay be bro"ht. (15,5)
Art. 11+1. The ti!e for the prescription of actions which have for their ob.ect the enforce!ent of
obliations to pay principal with interest or ann"ity r"ns fro! the last pay!ent of the ann"ity or of
the interest. (15/7a)
Art. 11+2. The period for prescription of actions to de!and the f"lfill!ent of obliation declared
by a ."d!ent co!!ences fro! the ti!e the ."d!ent beca!e final. (15/1)
Art. 11+'. The period for prescription of actions to de!and acco"ntin r"ns fro! the day the
persons who sho"ld render the sa!e cease in their f"nctions.
The period for the action arisin fro! the res"lt of the acco"ntin r"ns fro! the date when said
res"lt was reconi%ed by aree!ent of the interested parties. (15/2)
Art. 11+*. The period d"rin which the obliee was prevented by a fort"ito"s event fro! enforcin
his riht is not reckoned aainst hi!. (n)
Art. 11++. The prescription of actions is interr"pted when they are filed before the co"rt& when
there is a written e)tra."dicial de!and by the creditors& and when there is any written
acknowled!ent of the debt by the debtor. (15/'a)
REPUBLIC ACT NO. 386
AN ACT TO ORDAIN AND INSTITUTE
THE CIVIL CODE OF THE PHILIPPINES
BOOK IV
OBLI%ATIONS AND CONTRACTS
Ti!". I. # OBLI%ATIONS
CHAPTER $
%ENERAL PROVISIONS

Art. 11+,. An obliation is a ."ridical necessity to ive& to do or not to do. (n)
Art. 11+/. #bliations arise fro!<
(1) Law8
(2) Contracts8
(') I"asi1contracts8
(*) Acts or o!issions p"nished by law8 and
(+) I"asi1delicts. (1735a)
Art. 11+3. #bliations derived fro! law are not pres"!ed. #nly those e)pressly deter!ined in this
Code or in special laws are de!andable& and shall be re"lated by the precepts of the law which
establishes the!8 and as to what has not been foreseen& by the provisions of this Book. (1757)
Art. 11+5. #bliations arisin fro! contracts have the force of law between the contractin parties
and sho"ld be co!plied with in ood faith. (1751a)
Art. 11,7. #bliations derived fro! 0"asi1contracts shall be s"b.ect to the provisions of Chapter 1&
Title E>((& of this Book. (n)
Art. 11,1. Civil obliations arisin fro! cri!inal offenses shall be overned by the penal laws&
s"b.ect to the provisions of Article 21//& and of the pertinent provisions of Chapter 2& Preli!inary
Title& on 9"!an -elations& and of Title E>((( of this Book& re"latin da!aes. (1752a)
Art. 11,2. #bliations derived fro! 0"asi1delicts shall be overned by the provisions of Chapter 2&
Title E>(( of this Book& and by special laws. (175'a)

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Art. 11,'. :very person oblied to ive so!ethin is also oblied to take care of it with the proper
dilience of a ood father of a fa!ily& "nless the law or the stip"lation of the parties re0"ires
another standard of care. (175*a)
Art. 11,*. The creditor has a riht to the fr"its of the thin fro! the ti!e the obliation to deliver it
arises. 9owever& he shall ac0"ire no real riht over it "ntil the sa!e has been delivered to hi!.
(175+)
Art. 11,+. 2hen what is to be delivered is a deter!inate thin& the creditor& in addition to the riht
ranted hi! by Article 11/7& !ay co!pel the debtor to !ake the delivery.
(f the thin is indeter!inate or eneric& he !ay ask that the obliation be co!plied with at the
e)pense of the debtor.
(f the oblior delays& or has pro!ised to deliver the sa!e thin to two or !ore persons who do not
have the sa!e interest& he shall be responsible for any fort"ito"s event "ntil he has effected the
delivery. (175,)
Art. 11,,. The obliation to ive a deter!inate thin incl"des that of deliverin all its accessions
and accessories& even tho"h they !ay not have been !entioned. (175/a)
Art. 11,/. (f a person oblied to do so!ethin fails to do it& the sa!e shall be e)ec"ted at his cost.
This sa!e r"le shall be observed if he does it in contravention of the tenor of the obliation.
A"rther!ore& it !ay be decreed that what has been poorly done be "ndone. (1753)
Art. 11,3. 2hen the obliation consists in not doin& and the oblior does what has been forbidden
hi!& it shall also be "ndone at his e)pense. (1755a)
Art. 11,5. Those oblied to deliver or to do so!ethin inc"r in delay fro! the ti!e the obliee
."dicially or e)tra."dicially de!ands fro! the! the f"lfill!ent of their obliation.
9owever& the de!and by the creditor shall not be necessary in order that delay !ay e)ist<
(1) 2hen the obliation or the law e)pressly so declare8 or
(2) 2hen fro! the nat"re and the circ"!stances of the obliation it appears that the desination of
the ti!e when the thin is to be delivered or the service is to be rendered was a controllin !otive
for the establish!ent of the contract8 or
(') 2hen de!and wo"ld be "seless& as when the oblior has rendered it beyond his power to
perfor!.
(n reciprocal obliations& neither party inc"rs in delay if the other does not co!ply or is not ready
to co!ply in a proper !anner with what is inc"!bent "pon hi!. Aro! the !o!ent one of the
parties f"lfills his obliation& delay by the other beins. (1177a)
Art. 11/7. Those who in the perfor!ance of their obliations are "ilty of fra"d& nelience& or
delay& and those who in any !anner contravene the tenor thereof& are liable for da!aes. (1171)
Art. 11/1. -esponsibility arisin fro! fra"d is de!andable in all obliations. Any waiver of an
action for f"t"re fra"d is void. (1172a)
Art. 11/2. -esponsibility arisin fro! nelience in the perfor!ance of every kind of obliation is
also de!andable& b"t s"ch liability !ay be re"lated by the co"rts& accordin to the circ"!stances.
(117')
Art. 11/'. The fa"lt or nelience of the oblior consists in the o!ission of that dilience which is
re0"ired by the nat"re of the obliation and corresponds with the circ"!stances of the persons& of
the ti!e and of the place. 2hen nelience shows bad faith& the provisions of Articles 11/1 and
2271& pararaph 2& shall apply.
(f the law or contract does not state the dilience which is to be observed in the perfor!ance& that
which is e)pected of a ood father of a fa!ily shall be re0"ired. (117*a)
Art. 11/*. :)cept in cases e)pressly specified by the law& or when it is otherwise declared by
stip"lation& or when the nat"re of the obliation re0"ires the ass"!ption of risk& no person shall be
responsible for those events which co"ld not be foreseen& or which& tho"h foreseen& were
inevitable. (117+a)
Art. 11/+. ?s"rio"s transactions shall be overned by special laws. (n)
Art. 11/,. The receipt of the principal by the creditor witho"t reservation with respect to the
interest& shall ive rise to the pres"!ption that said interest has been paid.
The receipt of a later install!ent of a debt witho"t reservation as to prior install!ents& shall
likewise raise the pres"!ption that s"ch install!ents have been paid. (1117a)
Art. 11//. The creditors& after havin p"rs"ed the property in possession of the debtor to satisfy
their clai!s& !ay e)ercise all the rihts and brin all the actions of the latter for the sa!e p"rpose&
save those which are inherent in his person8 they !ay also i!p"n the acts which the debtor !ay
have done to defra"d the!. (1111)
Art. 11/3. @"b.ect to the laws& all rihts ac0"ired in virt"e of an obliation are trans!issible& if
there has been no stip"lation to the contrary. (1112)

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@:CT(#6 1. 1 P"re and Conditional #bliations

Art. 11/5. :very obliation whose perfor!ance does not depend "pon a f"t"re or "ncertain event&
or "pon a past event "nknown to the parties& is de!andable at once.
:very obliation which contains a resol"tory condition shall also be de!andable& witho"t pre."dice
to the effects of the happenin of the event. (111')
Art. 1137. 2hen the debtor binds hi!self to pay when his !eans per!it hi! to do so& the
obliation shall be dee!ed to be one with a period& s"b.ect to the provisions of Article 115/. (n)
Art. 1131. (n conditional obliations& the ac0"isition of rihts& as well as the e)tin"ish!ent or loss
of those already ac0"ired& shall depend "pon the happenin of the event which constit"tes the
condition. (111*)
Art. 1132. 2hen the f"lfill!ent of the condition depends "pon the sole will of the debtor& the
conditional obliation shall be void. (f it depends "pon chance or "pon the will of a third person&
the obliation shall take effect in confor!ity with the provisions of this Code. (111+)
Art. 113'. (!possible conditions& those contrary to ood c"sto!s or p"blic policy and those
prohibited by law shall ann"l the obliation which depends "pon the!. (f the obliation is
divisible& that part thereof which is not affected by the i!possible or "nlawf"l condition shall be
valid.
The condition not to do an i!possible thin shall be considered as not havin been areed "pon.
(111,a)
Art. 113*. The condition that so!e event happen at a deter!inate ti!e shall e)tin"ish the
obliation as soon as the ti!e e)pires or if it has beco!e ind"bitable that the event will not take
place. (111/)
Art. 113+. The condition that so!e event will not happen at a deter!inate ti!e shall render the
obliation effective fro! the !o!ent the ti!e indicated has elapsed& or if it has beco!e evident
that the event cannot occ"r.
(f no ti!e has been fi)ed& the condition shall be dee!ed f"lfilled at s"ch ti!e as !ay have
probably been conte!plated& bearin in !ind the nat"re of the obliation. (1113)
Art. 113,. The condition shall be dee!ed f"lfilled when the oblior vol"ntarily prevents its
f"lfill!ent. (1115)
Art. 113/. The effects of a conditional obliation to ive& once the condition has been f"lfilled&
shall retroact to the day of the constit"tion of the obliation. 6evertheless& when the obliation
i!poses reciprocal prestations "pon the parties& the fr"its and interests d"rin the pendency of the
condition shall be dee!ed to have been !"t"ally co!pensated. (f the obliation is "nilateral& the
debtor shall appropriate the fr"its and interests received& "nless fro! the nat"re and circ"!stances
of the obliation it sho"ld be inferred that the intention of the person constit"tin the sa!e was
different.
(n obliations to do and not to do& the co"rts shall deter!ine& in each case& the retroactive effect of
the condition that has been co!plied with. (1127)
Art. 1133. The creditor !ay& before the f"lfill!ent of the condition& brin the appropriate actions
for the preservation of his riht.
The debtor !ay recover what d"rin the sa!e ti!e he has paid by !istake in case of a s"spensive
condition. (1121a)
Art. 1135. 2hen the conditions have been i!posed with the intention of s"spendin the efficacy of
an obliation to ive& the followin r"les shall be observed in case of the i!prove!ent& loss or
deterioration of the thin d"rin the pendency of the condition<
(1) (f the thin is lost witho"t the fa"lt of the debtor& the obliation shall be e)tin"ished8
(2) (f the thin is lost thro"h the fa"lt of the debtor& he shall be oblied to pay da!aes8 it is
"nderstood that the thin is lost when it perishes& or oes o"t of co!!erce& or disappears in s"ch a
way that its e)istence is "nknown or it cannot be recovered8
(') 2hen the thin deteriorates witho"t the fa"lt of the debtor& the i!pair!ent is to be borne by the
creditor8
(*) (f it deteriorates thro"h the fa"lt of the debtor& the creditor !ay choose between the rescission
of the obliation and its f"lfill!ent& with inde!nity for da!aes in either case8
(+) (f the thin is i!proved by its nat"re& or by ti!e& the i!prove!ent shall in"re to the benefit of
the creditor8
(,) (f it is i!proved at the e)pense of the debtor& he shall have no other riht than that ranted to
the "s"fr"ct"ary. (1122)
Art. 1157. 2hen the conditions have for their p"rpose the e)tin"ish!ent of an obliation to ive&
the parties& "pon the f"lfill!ent of said conditions& shall ret"rn to each other what they have
received.
(n case of the loss& deterioration or i!prove!ent of the thin& the provisions which& with respect to
the debtor& are laid down in the precedin article shall be applied to the party who is bo"nd to
ret"rn.
As for the obliations to do and not to do& the provisions of the second pararaph of Article 113/
shall be observed as reards the effect of the e)tin"ish!ent of the obliation. (112')
Art. 1151. The power to rescind obliations is i!plied in reciprocal ones& in case one of the
obliors sho"ld not co!ply with what is inc"!bent "pon hi!.
The in."red party !ay choose between the f"lfill!ent and the rescission of the obliation& with the
pay!ent of da!aes in either case. 9e !ay also seek rescission& even after he has chosen
f"lfill!ent& if the latter sho"ld beco!e i!possible.
The co"rt shall decree the rescission clai!ed& "nless there be ."st ca"se a"thori%in the fi)in of a
period.
This is "nderstood to be witho"t pre."dice to the rihts of third persons who have ac0"ired the
thin& in accordance with Articles 1'3+ and 1'33 and the =ortae Law. (112*)
Art. 1152. (n case both parties have co!!itted a breach of the obliation& the liability of the first
infractor shall be e0"itably te!pered by the co"rts. (f it cannot be deter!ined which of the parties
first violated the contract& the sa!e shall be dee!ed e)tin"ished& and each shall bear his own
da!aes. (n)

@:CT(#6 2. 1 #bliations with a Period

Art. 115'. #bliations for whose f"lfill!ent a day certain has been fi)ed& shall be de!andable only
when that day co!es.
#bliations with a resol"tory period take effect at once& b"t ter!inate "pon arrival of the day
certain.
A day certain is "nderstood to be that which !"st necessarily co!e& altho"h it !ay not be known
when.
(f the "ncertainty consists in whether the day will co!e or not& the obliation is conditional& and it
shall be re"lated by the r"les of the precedin @ection. (112+a)
Art. 115*. (n case of loss& deterioration or i!prove!ent of the thin before the arrival of the day
certain& the r"les in Article 1135 shall be observed. (n)
Art. 115+. Anythin paid or delivered before the arrival of the period& the oblior bein "naware of
the period or believin that the obliation has beco!e d"e and de!andable& !ay be recovered&
with the fr"its and interests. (112,a)
Art. 115,. 2henever in an obliation a period is desinated& it is pres"!ed to have been
established for the benefit of both the creditor and the debtor& "nless fro! the tenor of the sa!e or
other circ"!stances it sho"ld appear that the period has been established in favor of one or of the
other. (112/)
Art. 115/. (f the obliation does not fi) a period& b"t fro! its nat"re and the circ"!stances it can be
inferred that a period was intended& the co"rts !ay fi) the d"ration thereof.
The co"rts shall also fi) the d"ration of the period when it depends "pon the will of the debtor.
(n every case& the co"rts shall deter!ine s"ch period as !ay "nder the circ"!stances have been
probably conte!plated by the parties. #nce fi)ed by the co"rts& the period cannot be chaned by
the!. (1123a)
Art. 1153. The debtor shall lose every riht to !ake "se of the period<
(1) 2hen after the obliation has been contracted& he beco!es insolvent& "nless he ives a "aranty
or sec"rity for the debt8
(2) 2hen he does not f"rnish to the creditor the "aranties or sec"rities which he has pro!ised8
(') 2hen by his own acts he has i!paired said "aranties or sec"rities after their establish!ent&
and when thro"h a fort"ito"s event they disappear& "nless he i!!ediately ives new ones e0"ally
satisfactory8
(*) 2hen the debtor violates any "ndertakin& in consideration of which the creditor areed to the
period8
(+) 2hen the debtor atte!pts to abscond. (1125a)

@:CT(#6 '. 1 Alternative #bliations

Art. 1155. A person alternatively bo"nd by different prestations shall co!pletely perfor! one of
the!.
The creditor cannot be co!pelled to receive part of one and part of the other "ndertakin. (11'1)
Art. 1277. The riht of choice belons to the debtor& "nless it has been e)pressly ranted to the
creditor.
The debtor shall have no riht to choose those prestations which are i!possible& "nlawf"l or which
co"ld not have been the ob.ect of the obliation. (11'2)
Art. 1271. The choice shall prod"ce no effect e)cept fro! the ti!e it has been co!!"nicated.
(11'')
Art. 1272. The debtor shall lose the riht of choice when a!on the prestations whereby he is
alternatively bo"nd& only one is practicable. (11'*)
Art. 127'. (f thro"h the creditor;s acts the debtor cannot !ake a choice accordin to the ter!s of
the obliation& the latter !ay rescind the contract with da!aes. (n)
Art. 127*. The creditor shall have a riht to inde!nity for da!aes when& thro"h the fa"lt of the
debtor& all the thins which are alternatively the ob.ect of the obliation have been lost& or the
co!pliance of the obliation has beco!e i!possible.
The inde!nity shall be fi)ed takin as a basis the val"e of the last thin which disappeared& or that
of the service which last beca!e i!possible.
Da!aes other than the val"e of the last thin or service !ay also be awarded. (11'+a)
Art. 127+. 2hen the choice has been e)pressly iven to the creditor& the obliation shall cease to be
alternative fro! the day when the selection has been co!!"nicated to the debtor.
?ntil then the responsibility of the debtor shall be overned by the followin r"les<
(1) (f one of the thins is lost thro"h a fort"ito"s event& he shall perfor! the obliation by
deliverin that which the creditor sho"ld choose fro! a!on the re!ainder& or that which re!ains
if only one s"bsists8
(2) (f the loss of one of the thins occ"rs thro"h the fa"lt of the debtor& the creditor !ay clai! any
of those s"bsistin& or the price of that which& thro"h the fa"lt of the for!er& has disappeared& with
a riht to da!aes8
(') (f all the thins are lost thro"h the fa"lt of the debtor& the choice by the creditor shall fall "pon
the price of any one of the!& also with inde!nity for da!aes.
The sa!e r"les shall be applied to obliations to do or not to do in case one& so!e or all of the
prestations sho"ld beco!e i!possible. (11',a)
Art. 127,. 2hen only one prestation has been areed "pon& b"t the oblior !ay render another in
s"bstit"tion& the obliation is called fac"ltative.
The loss or deterioration of the thin intended as a s"bstit"te& thro"h the nelience of the oblior&
does not render hi! liable. B"t once the s"bstit"tion has been !ade& the oblior is liable for the
loss of the s"bstit"te on acco"nt of his delay& nelience or fra"d. (n)

@:CT(#6 *. 1 4oint and @olidary #bliations

Art. 127/. The conc"rrence of two or !ore creditors or of two or !ore debtors in one and the sa!e
obliation does not i!ply that each one of the for!er has a riht to de!and& or that each one of the
latter is bo"nd to render& entire co!pliance with the prestation. There is a solidary liability only
when the obliation e)pressly so states& or when the law or the nat"re of the obliation re0"ires
solidarity. (11'/a)
Art. 1273. (f fro! the law& or the nat"re or the wordin of the obliations to which the precedin
article refers the contrary does not appear& the credit or debt shall be pres"!ed to be divided into as
!any shares as there are creditors or debtors& the credits or debts bein considered distinct fro!
one another& s"b.ect to the -"les of Co"rt overnin the !"ltiplicity of s"its. (11'3a)
Art. 1275. (f the division is i!possible& the riht of the creditors !ay be pre."diced only by their
collective acts& and the debt can be enforced only by proceedin aainst all the debtors. (f one of
the latter sho"ld be insolvent& the others shall not be liable for his share. (11'5)
Art. 1217. The indivisibility of an obliation does not necessarily ive rise to solidarity. 6or does
solidarity of itself i!ply indivisibility. (n)
Art. 1211. @olidarity !ay e)ist altho"h the creditors and the debtors !ay not be bo"nd in the
sa!e !anner and by the sa!e periods and conditions. (11*7)
Art. 1212. :ach one of the solidary creditors !ay do whatever !ay be "sef"l to the others& b"t not
anythin which !ay be pre."dicial to the latter. (11*1a)
Art. 121'. A solidary creditor cannot assin his rihts witho"t the consent of the others. (n)
Art. 121*. The debtor !ay pay any one of the solidary creditors8 b"t if any de!and& ."dicial or
e)tra."dicial& has been !ade by one of the!& pay!ent sho"ld be !ade to hi!. (11*2a)
Art. 121+. 6ovation& co!pensation& conf"sion or re!ission of the debt& !ade by any of the
solidary creditors or with any of the solidary debtors& shall e)tin"ish the obliation& witho"t
pre."dice to the provisions of Article 1215.
The creditor who !ay have e)ec"ted any of these acts& as well as he who collects the debt& shall be
liable to the others for the share in the obliation correspondin to the!. (11*')
Art. 121,. The creditor !ay proceed aainst any one of the solidary debtors or so!e or all of the!
si!"ltaneo"sly. The de!and !ade aainst one of the! shall not be an obstacle to those which !ay
s"bse0"ently be directed aainst the others& so lon as the debt has not been f"lly collected.
(11**a)
Art. 121/. Pay!ent !ade by one of the solidary debtors e)tin"ishes the obliation. (f two or !ore
solidary debtors offer to pay& the creditor !ay choose which offer to accept.
9e who !ade the pay!ent !ay clai! fro! his co1debtors only the share which corresponds to
each& with the interest for the pay!ent already !ade. (f the pay!ent is !ade before the debt is d"e&
no interest for the intervenin period !ay be de!anded.
2hen one of the solidary debtors cannot& beca"se of his insolvency& rei!b"rse his share to the
debtor payin the obliation& s"ch share shall be borne by all his co1debtors& in proportion to the
debt of each. (11*+a)
Art. 1213. Pay!ent by a solidary debtor shall not entitle hi! to rei!b"rse!ent fro! his co1debtors
if s"ch pay!ent is !ade after the obliation has prescribed or beco!e illeal. (n)
Art. 1215. The re!ission !ade by the creditor of the share which affects one of the solidary
debtors does not release the latter fro! his responsibility towards the co1debtors& in case the debt
had been totally paid by anyone of the! before the re!ission was effected. (11*,a)
Art. 1227. The re!ission of the whole obliation& obtained by one of the solidary debtors& does not
entitle hi! to rei!b"rse!ent fro! his co1debtors. (n)
Art. 1221. (f the thin has been lost or if the prestation has beco!e i!possible witho"t the fa"lt of
the solidary debtors& the obliation shall be e)tin"ished.
(f there was fa"lt on the part of any one of the!& all shall be responsible to the creditor& for the
price and the pay!ent of da!aes and interest& witho"t pre."dice to their action aainst the "ilty
or nelient debtor.
(f thro"h a fort"ito"s event& the thin is lost or the perfor!ance has beco!e i!possible after one
of the solidary debtors has inc"rred in delay thro"h the ."dicial or e)tra."dicial de!and "pon hi!
by the creditor& the provisions of the precedin pararaph shall apply. (11*/a)
Art. 1222. A solidary debtor !ay& in actions filed by the creditor& avail hi!self of all defenses
which are derived fro! the nat"re of the obliation and of those which are personal to hi!& or
pertain to his own share. 2ith respect to those which personally belon to the others& he !ay avail
hi!self thereof only as reards that part of the debt for which the latter are responsible. (11*3a)

@:CT(#6 +. 1 Divisible and (ndivisible #bliations

Art. 122'. The divisibility or indivisibility of the thins that are the ob.ect of obliations in which
there is only one debtor and only one creditor does not alter or !odify the provisions of Chapter 2
of this Title. (11*5)
Art. 122*. A .oint indivisible obliation ives rise to inde!nity for da!aes fro! the ti!e anyone
of the debtors does not co!ply with his "ndertakin. The debtors who !ay have been ready to
f"lfill their pro!ises shall not contrib"te to the inde!nity beyond the correspondin portion of the
price of the thin or of the val"e of the service in which the obliation consists. (11+7)
Art. 122+. Aor the p"rposes of the precedin articles& obliations to ive definite thins and those
which are not s"sceptible of partial perfor!ance shall be dee!ed to be indivisible.
2hen the obliation has for its ob.ect the e)ec"tion of a certain n"!ber of days of work& the
acco!plish!ent of work by !etrical "nits& or analoo"s thins which by their nat"re are
s"sceptible of partial perfor!ance& it shall be divisible.
9owever& even tho"h the ob.ect or service !ay be physically divisible& an obliation is indivisible
if so provided by law or intended by the parties.
(n obliations not to do& divisibility or indivisibility shall be deter!ined by the character of the
prestation in each partic"lar case. (11+1a)

@:CT(#6 ,. 1 #bliations with a Penal Cla"se

Art. 122,. (n obliations with a penal cla"se& the penalty shall s"bstit"te the inde!nity for da!aes
and the pay!ent of interests in case of nonco!pliance& if there is no stip"lation to the contrary.
6evertheless& da!aes shall be paid if the oblior ref"ses to pay the penalty or is "ilty of fra"d in
the f"lfill!ent of the obliation.
The penalty !ay be enforced only when it is de!andable in accordance with the provisions of this
Code. (11+2a)
Art. 122/. The debtor cannot e)e!pt hi!self fro! the perfor!ance of the obliation by payin the
penalty& save in the case where this riht has been e)pressly reserved for hi!. 6either can the
creditor de!and the f"lfill!ent of the obliation and the satisfaction of the penalty at the sa!e
ti!e& "nless this riht has been clearly ranted hi!. 9owever& if after the creditor has decided to
re0"ire the f"lfill!ent of the obliation& the perfor!ance thereof sho"ld beco!e i!possible
witho"t his fa"lt& the penalty !ay be enforced. (11+'a)
Art. 1223. Proof of act"al da!aes s"ffered by the creditor is not necessary in order that the
penalty !ay be de!anded. (n)
Art. 1225. The ."de shall e0"itably red"ce the penalty when the principal obliation has been
partly or irre"larly co!plied with by the debtor. :ven if there has been no perfor!ance& the
penalty !ay also be red"ced by the co"rts if it is ini0"ito"s or "nconscionable. (11+*a)
Art. 12'7. The n"llity of the penal cla"se does not carry with it that of the principal obliation.
The n"llity of the principal obliation carries with it that of the penal cla"se. (11++)

C9APT:- *
:ET(6$?(@9=:6T #A #BL($AT(#6@

$:6:-AL P-#>(@(#6@

Art. 12'1. #bliations are e)tin"ished<
(1) By pay!ent or perfor!ance<
(2) By the loss of the thin d"e<
(') By the condonation or re!ission of the debt8
(*) By the conf"sion or !erer of the rihts of creditor and debtor8
(+) By co!pensation8
(,) By novation.
#ther ca"ses of e)tin"ish!ent of obliations& s"ch as ann"l!ent& rescission& f"lfill!ent of a
resol"tory condition& and prescription& are overned elsewhere in this Code. (11+,a)

@:CT(#6 1. 1 Pay!ent or Perfor!ance

Art. 12'2. Pay!ent !eans not only the delivery of !oney b"t also the perfor!ance& in any other
!anner& of an obliation. (n)
Art. 12''. A debt shall not be "nderstood to have been paid "nless the thin or service in which the
obliation consists has been co!pletely delivered or rendered& as the case !ay be. (11+/)
Art. 12'*. (f the obliation has been s"bstantially perfor!ed in ood faith& the oblior !ay recover
as tho"h there had been a strict and co!plete f"lfill!ent& less da!aes s"ffered by the obliee. (n)
Art. 12'+. 2hen the obliee accepts the perfor!ance& knowin its inco!pleteness or irre"larity&
and witho"t e)pressin any protest or ob.ection& the obliation is dee!ed f"lly co!plied with. (n)
Art. 12',. The creditor is not bo"nd to accept pay!ent or perfor!ance by a third person who has
no interest in the f"lfill!ent of the obliation& "nless there is a stip"lation to the contrary.
2hoever pays for another !ay de!and fro! the debtor what he has paid& e)cept that if he paid
witho"t the knowlede or aainst the will of the debtor& he can recover only insofar as the pay!ent
has been beneficial to the debtor. (11+3a)
Art. 12'/. 2hoever pays on behalf of the debtor witho"t the knowlede or aainst the will of the
latter& cannot co!pel the creditor to s"broate hi! in his rihts& s"ch as those arisin fro! a
!ortae& "aranty& or penalty. (11+5a)
Art. 12'3. Pay!ent !ade by a third person who does not intend to be rei!b"rsed by the debtor is
dee!ed to be a donation& which re0"ires the debtor;s consent. B"t the pay!ent is in any case valid
as to the creditor who has accepted it. (n)
Art. 12'5. (n obliations to ive& pay!ent !ade by one who does not have the free disposal of the
thin d"e and capacity to alienate it shall not be valid& witho"t pre."dice to the provisions of Article
1*2/ "nder the Title on "6at"ral #bliations." (11,7a)
Art. 12*7. Pay!ent shall be !ade to the person in whose favor the obliation has been constit"ted&
or his s"ccessor in interest& or any person a"thori%ed to receive it. (11,2a)
Art. 12*1. Pay!ent to a person who is incapacitated to ad!inister his property shall be valid if he
has kept the thin delivered& or insofar as the pay!ent has been beneficial to hi!.
Pay!ent !ade to a third person shall also be valid insofar as it has redo"nded to the benefit of the
creditor. @"ch benefit to the creditor need not be proved in the followin cases<
(1) (f after the pay!ent& the third person ac0"ires the creditor;s rihts8
(2) (f the creditor ratifies the pay!ent to the third person8
(') (f by the creditor;s cond"ct& the debtor has been led to believe that the third person had a"thority
to receive the pay!ent. (11,'a)
Art. 12*2. Pay!ent !ade in ood faith to any person in possession of the credit shall release the
debtor. (11,*)
Art. 12*'. Pay!ent !ade to the creditor by the debtor after the latter has been ."dicially ordered to
retain the debt shall not be valid. (11,+)
Art. 12**. The debtor of a thin cannot co!pel the creditor to receive a different one& altho"h the
latter !ay be of the sa!e val"e as& or !ore val"able than that which is d"e.
(n obliations to do or not to do& an act or forbearance cannot be s"bstit"ted by another act or
forbearance aainst the obliee;s will. (11,,a)
Art. 12*+. Dation in pay!ent& whereby property is alienated to the creditor in satisfaction of a debt
in !oney& shall be overned by the law of sales. (n)
Art. 12*,. 2hen the obliation consists in the delivery of an indeter!inate or eneric thin& whose
0"ality and circ"!stances have not been stated& the creditor cannot de!and a thin of s"perior
0"ality. 6either can the debtor deliver a thin of inferior 0"ality. The p"rpose of the obliation and
other circ"!stances shall be taken into consideration. (11,/a)
Art. 12*/. ?nless it is otherwise stip"lated& the e)tra."dicial e)penses re0"ired by the pay!ent
shall be for the acco"nt of the debtor. 2ith reard to ."dicial costs& the -"les of Co"rt shall overn.
(11,3a)
Art. 12*3. ?nless there is an e)press stip"lation to that effect& the creditor cannot be co!pelled
partially to receive the prestations in which the obliation consists. 6either !ay the debtor be
re0"ired to !ake partial pay!ents.
9owever& when the debt is in part li0"idated and in part "nli0"idated& the creditor !ay de!and and
the debtor !ay effect the pay!ent of the for!er witho"t waitin for the li0"idation of the latter.
(11,5a)
Art. 12*5. The pay!ent of debts in !oney shall be !ade in the c"rrency stip"lated& and if it is not
possible to deliver s"ch c"rrency& then in the c"rrency which is leal tender in the Philippines.
The delivery of pro!issory notes payable to order& or bills of e)chane or other !ercantile
doc"!ents shall prod"ce the effect of pay!ent only when they have been cashed& or when thro"h
the fa"lt of the creditor they have been i!paired.
(n the !eanti!e& the action derived fro! the oriinal obliation shall be held in the abeyance.
(11/7)
Art. 12+7. (n case an e)traordinary inflation or deflation of the c"rrency stip"lated sho"ld
s"pervene& the val"e of the c"rrency at the ti!e of the establish!ent of the obliation shall be the
basis of pay!ent& "nless there is an aree!ent to the contrary. (n)
Art. 12+1. Pay!ent shall be !ade in the place desinated in the obliation.
There bein no e)press stip"lation and if the "ndertakin is to deliver a deter!inate thin& the
pay!ent shall be !ade wherever the thin !iht be at the !o!ent the obliation was constit"ted.
(n any other case the place of pay!ent shall be the do!icile of the debtor.
(f the debtor chanes his do!icile in bad faith or after he has inc"rred in delay& the additional
e)penses shall be borne by hi!.
These provisions are witho"t pre."dice to ven"e "nder the -"les of Co"rt. (11/1a)

@?B@:CT(#6 1. 1 Application of Pay!ents

Art. 12+2. 9e who has vario"s debts of the sa!e kind in favor of one and the sa!e creditor& !ay
declare at the ti!e of !akin the pay!ent& to which of the! the sa!e !"st be applied. ?nless the
parties so stip"late& or when the application of pay!ent is !ade by the party for whose benefit the
ter! has been constit"ted& application shall not be !ade as to debts which are not yet d"e.
(f the debtor accepts fro! the creditor a receipt in which an application of the pay!ent is !ade& the
for!er cannot co!plain of the sa!e& "nless there is a ca"se for invalidatin the contract. (11/2a)
Art. 12+'. (f the debt prod"ces interest& pay!ent of the principal shall not be dee!ed to have been
!ade "ntil the interests have been covered. (11/')
Art. 12+*. 2hen the pay!ent cannot be applied in accordance with the precedin r"les& or if
application can not be inferred fro! other circ"!stances& the debt which is !ost onero"s to the
debtor& a!on those d"e& shall be dee!ed to have been satisfied.
(f the debts d"e are of the sa!e nat"re and b"rden& the pay!ent shall be applied to all of the!
proportionately. (11/*a)

@?B@:CT(#6 2. 1 Pay!ent by Cession

Art. 12++. The debtor !ay cede or assin his property to his creditors in pay!ent of his debts. This
cession& "nless there is stip"lation to the contrary& shall only release the debtor fro! responsibility
for the net proceeds of the thin assined. The aree!ents which& on the effect of the cession& are
!ade between the debtor and his creditors shall be overned by special laws. (11/+a)

@?B@:CT(#6 '. 1 Tender of Pay!ent and Consination

Art. 12+,. (f the creditor to who! tender of pay!ent has been !ade ref"ses witho"t ."st ca"se to
accept it& the debtor shall be released fro! responsibility by the consination of the thin or s"!
d"e.
Consination alone shall prod"ce the sa!e effect in the followin cases<
(1) 2hen the creditor is absent or "nknown& or does not appear at the place of pay!ent8
(2) 2hen he is incapacitated to receive the pay!ent at the ti!e it is d"e8
(') 2hen& witho"t ."st ca"se& he ref"ses to ive a receipt8
(*) 2hen two or !ore persons clai! the sa!e riht to collect8
(+) 2hen the title of the obliation has been lost. (11/,a)
Art. 12+/. (n order that the consination of the thin d"e !ay release the oblior& it !"st first be
anno"nced to the persons interested in the f"lfill!ent of the obliation.
The consination shall be ineffect"al if it is not !ade strictly in consonance with the provisions
which re"late pay!ent. (11//)
Art. 12+3. Consination shall be !ade by depositin the thins d"e at the disposal of ."dicial
a"thority& before who! the tender of pay!ent shall be proved& in a proper case& and the
anno"nce!ent of the consination in other cases.
The consination havin been !ade& the interested parties shall also be notified thereof. (11/3)
Art. 12+5. The e)penses of consination& when properly !ade& shall be chared aainst the
creditor. (11/3)
Art. 12,7. #nce the consination has been d"ly !ade& the debtor !ay ask the ."de to order the
cancellation of the obliation.
Before the creditor has accepted the consination& or before a ."dicial declaration that the
consination has been properly !ade& the debtor !ay withdraw the thin or the s"! deposited&
allowin the obliation to re!ain in force. (1137)
Art. 12,1. (f& the consination havin been !ade& the creditor sho"ld a"thori%e the debtor to
withdraw the sa!e& he shall lose every preference which he !ay have over the thin. The co1
debtors& "arantors and s"reties shall be released. (1131a)

@:CT(#6 2. 1 Loss of the Thin D"e

Art. 12,2. An obliation which consists in the delivery of a deter!inate thin shall be e)tin"ished
if it sho"ld be lost or destroyed witho"t the fa"lt of the debtor& and before he has inc"rred in delay.
2hen by law or stip"lation& the oblior is liable even for fort"ito"s events& the loss of the thin
does not e)tin"ish the obliation& and he shall be responsible for da!aes. The sa!e r"le applies
when the nat"re of the obliation re0"ires the ass"!ption of risk. (1132a)
Art. 12,'. (n an obliation to deliver a eneric thin& the loss or destr"ction of anythin of the
sa!e kind does not e)tin"ish the obliation. (n)
Art. 12,*. The co"rts shall deter!ine whether& "nder the circ"!stances& the partial loss of the
ob.ect of the obliation is so i!portant as to e)tin"ish the obliation. (n)
Art. 12,+. 2henever the thin is lost in the possession of the debtor& it shall be pres"!ed that the
loss was d"e to his fa"lt& "nless there is proof to the contrary& and witho"t pre."dice to the
provisions of article 11,+. This pres"!ption does not apply in case of earth0"ake& flood& stor!& or
other nat"ral cala!ity. (113'a)
Art. 12,,. The debtor in obliations to do shall also be released when the prestation beco!es
leally or physically i!possible witho"t the fa"lt of the oblior. (113*a)
Art. 12,/. 2hen the service has beco!e so diffic"lt as to be !anifestly beyond the conte!plation
of the parties& the oblior !ay also be released therefro!& in whole or in part. (n)
Art. 12,3. 2hen the debt of a thin certain and deter!inate proceeds fro! a cri!inal offense& the
debtor shall not be e)e!pted fro! the pay!ent of its price& whatever !ay be the ca"se for the loss&
"nless the thin havin been offered by hi! to the person who sho"ld receive it& the latter ref"sed
witho"t ."stification to accept it. (113+)
Art. 12,5. The obliation havin been e)tin"ished by the loss of the thin& the creditor shall have
all the rihts of action which the debtor !ay have aainst third persons by reason of the loss.
(113,)

@:CT(#6 '. 1 Condonation or -e!ission of the Debt

Art. 12/7. Condonation or re!ission is essentially rat"ito"s& and re0"ires the acceptance by the
oblior. (t !ay be !ade e)pressly or i!pliedly.
#ne and the other kind shall be s"b.ect to the r"les which overn inofficio"s donations. :)press
condonation shall& f"rther!ore& co!ply with the for!s of donation. (113/)
Art. 12/1. The delivery of a private doc"!ent evidencin a credit& !ade vol"ntarily by the creditor
to the debtor& i!plies the ren"nciation of the action which the for!er had aainst the latter.
(f in order to n"llify this waiver it sho"ld be clai!ed to be inofficio"s& the debtor and his heirs !ay
"phold it by provin that the delivery of the doc"!ent was !ade in virt"e of pay!ent of the debt.
(1133)
Art. 12/2. 2henever the private doc"!ent in which the debt appears is fo"nd in the possession of
the debtor& it shall be pres"!ed that the creditor delivered it vol"ntarily& "nless the contrary is
proved. (1135)
Art. 12/'. The ren"nciation of the principal debt shall e)tin"ish the accessory obliations8 b"t the
waiver of the latter shall leave the for!er in force. (1157)
Art. 12/*. (t is pres"!ed that the accessory obliation of plede has been re!itted when the thin
pleded& after its delivery to the creditor& is fo"nd in the possession of the debtor& or of a third
person who owns the thin. (1151a)

@:CT(#6 *. 1 Conf"sion or =erer of -ihts

Art. 12/+. The obliation is e)tin"ished fro! the ti!e the characters of creditor and debtor are
!ered in the sa!e person. (1152a)
Art. 12/,. =erer which takes place in the person of the principal debtor or creditor benefits the
"arantors. Conf"sion which takes place in the person of any of the latter does not e)tin"ish the
obliation. (115')
Art. 12//. Conf"sion does not e)tin"ish a .oint obliation e)cept as reards the share
correspondin to the creditor or debtor in who! the two characters conc"r. (115*)

@:CT(#6 +. 1 Co!pensation

Art. 12/3. Co!pensation shall take place when two persons& in their own riht& are creditors and
debtors of each other. (115+)
Art. 12/5. (n order that co!pensation !ay be proper& it is necessary<
(1) That each one of the obliors be bo"nd principally& and that he be at the sa!e ti!e a principal
creditor of the other8
(2) That both debts consist in a s"! of !oney& or if the thins d"e are cons"!able& they be of the
sa!e kind& and also of the sa!e 0"ality if the latter has been stated8
(') That the two debts be d"e8
(*) That they be li0"idated and de!andable8
(+) That over neither of the! there be any retention or controversy& co!!enced by third persons
and co!!"nicated in d"e ti!e to the debtor. (115,)
Art. 1237. 6otwithstandin the provisions of the precedin article& the "arantor !ay set "p
co!pensation as reards what the creditor !ay owe the principal debtor. (115/)
Art. 1231. Co!pensation !ay be total or partial. 2hen the two debts are of the sa!e a!o"nt& there
is a total co!pensation. (n)
Art. 1232. The parties !ay aree "pon the co!pensation of debts which are not yet d"e. (n)
Art. 123'. (f one of the parties to a s"it over an obliation has a clai! for da!aes aainst the
other& the for!er !ay set it off by provin his riht to said da!aes and the a!o"nt thereof. (n)
Art. 123*. 2hen one or both debts are rescissible or voidable& they !ay be co!pensated aainst
each other before they are ."dicially rescinded or avoided. (n)
Art. 123+. The debtor who has consented to the assin!ent of rihts !ade by a creditor in favor of
a third person& cannot set "p aainst the assinee the co!pensation which wo"ld pertain to hi!
aainst the assinor& "nless the assinor was notified by the debtor at the ti!e he ave his consent&
that he reserved his riht to the co!pensation.
(f the creditor co!!"nicated the cession to hi! b"t the debtor did not consent thereto& the latter
!ay set "p the co!pensation of debts previo"s to the cession& b"t not of s"bse0"ent ones.
(f the assin!ent is !ade witho"t the knowlede of the debtor& he !ay set "p the co!pensation of
all credits prior to the sa!e and also later ones "ntil he had knowlede of the assin!ent. (1153a)
Art. 123,. Co!pensation takes place by operation of law& even tho"h the debts !ay be payable at
different places& b"t there shall be an inde!nity for e)penses of e)chane or transportation to the
place of pay!ent. (1155a)
Art. 123/. Co!pensation shall not be proper when one of the debts arises fro! a deposit"! or
fro! the obliations of a depositary or of a bailee in co!!odat"!.
6either can co!pensation be set "p aainst a creditor who has a clai! for s"pport d"e by
rat"ito"s title& witho"t pre."dice to the provisions of pararaph 2 of Article '71. (1277a)
Art. 1233. 6either shall there be co!pensation if one of the debts consists in civil liability arisin
fro! a penal offense. (n)
Art. 1235. (f a person sho"ld have aainst hi! several debts which are s"sceptible of
co!pensation& the r"les on the application of pay!ents shall apply to the order of the
co!pensation. (1271)
Art. 1257. 2hen all the re0"isites !entioned in Article 12/5 are present& co!pensation takes effect
by operation of law& and e)tin"ishes both debts to the conc"rrent a!o"nt& even tho"h the
creditors and debtors are not aware of the co!pensation. (1272a)

@:CT(#6 ,. 1 6ovation

Art. 1251. #bliations !ay be !odified by<
(1) Chanin their ob.ect or principal conditions8
(2) @"bstit"tin the person of the debtor8
(') @"broatin a third person in the rihts of the creditor. (127')
Art. 1252. (n order that an obliation !ay be e)tin"ished by another which s"bstit"te the sa!e& it
is i!perative that it be so declared in "ne0"ivocal ter!s& or that the old and the new obliations be
on every point inco!patible with each other. (127*)
Art. 125'. 6ovation which consists in s"bstit"tin a new debtor in the place of the oriinal one&
!ay be !ade even witho"t the knowlede or aainst the will of the latter& b"t not witho"t the
consent of the creditor. Pay!ent by the new debtor ives hi! the rihts !entioned in Articles 12',
and 12'/. (127+a)
Art. 125*. (f the s"bstit"tion is witho"t the knowlede or aainst the will of the debtor& the new
debtor;s insolvency or non1f"lfill!ent of the obliations shall not ive rise to any liability on the
part of the oriinal debtor. (n)
Art. 125+. The insolvency of the new debtor& who has been proposed by the oriinal debtor and
accepted by the creditor& shall not revive the action of the latter aainst the oriinal oblior& e)cept
when said insolvency was already e)istin and of p"blic knowlede& or known to the debtor& when
the deleated his debt. (127,a)
Art. 125,. 2hen the principal obliation is e)tin"ished in conse0"ence of a novation& accessory
obliations !ay s"bsist only insofar as they !ay benefit third persons who did not ive their
consent. (127/)
Art. 125/. (f the new obliation is void& the oriinal one shall s"bsist& "nless the parties intended
that the for!er relation sho"ld be e)tin"ished in any event. (n)
Art. 1253. The novation is void if the oriinal obliation was void& e)cept when ann"l!ent !ay be
clai!ed only by the debtor or when ratification validates acts which are voidable. (1273a)
Art. 1255. (f the oriinal obliation was s"b.ect to a s"spensive or resol"tory condition& the new
obliation shall be "nder the sa!e condition& "nless it is otherwise stip"lated. (n)
Art. 1'77. @"broation of a third person in the rihts of the creditor is either leal or conventional.
The for!er is not pres"!ed& e)cept in cases e)pressly !entioned in this Code8 the latter !"st be
clearly established in order that it !ay take effect. (1275a)
Art. 1'71. Conventional s"broation of a third person re0"ires the consent of the oriinal parties
and of the third person. (n)
Art. 1'72. (t is pres"!ed that there is leal s"broation<
(1) 2hen a creditor pays another creditor who is preferred& even witho"t the debtor;s knowlede8
(2) 2hen a third person& not interested in the obliation& pays with the e)press or tacit approval of
the debtor8
(') 2hen& even witho"t the knowlede of the debtor& a person interested in the f"lfill!ent of the
obliation pays& witho"t pre."dice to the effects of conf"sion as to the latter;s share. (1217a)
Art. 1'7'. @"broation transfers to the persons s"broated the credit with all the rihts thereto
appertainin& either aainst the debtor or aainst third person& be they "arantors or possessors of
!ortaes& s"b.ect to stip"lation in a conventional s"broation. (1212a)
Art. 1'7*. A creditor& to who! partial pay!ent has been !ade& !ay e)ercise his riht for the
re!ainder& and he shall be preferred to the person who has been s"broated in his place in virt"e of
the partial pay!ent of the sa!e credit. (121')

Title ((. 1 C#6T-ACT@

C9APT:- 1
$:6:-AL P-#>(@(#6@

Art. 1'7+. A contract is a !eetin of !inds between two persons whereby one binds hi!self& with
respect to the other& to ive so!ethin or to render so!e service. (12+*a)
Art. 1'7,. The contractin parties !ay establish s"ch stip"lations& cla"ses& ter!s and conditions as
they !ay dee! convenient& provided they are not contrary to law& !orals& ood c"sto!s& p"blic
order& or p"blic policy. (12++a)
Art. 1'7/. (nno!inate contracts shall be re"lated by the stip"lations of the parties& by the
provisions of Titles ( and (( of this Book& by the r"les overnin the !ost analoo"s no!inate
contracts& and by the c"sto!s of the place. (n)
Art. 1'73. The contract !"st bind both contractin parties8 its validity or co!pliance cannot be left
to the will of one of the!. (12+,a)
Art. 1'75. The deter!ination of the perfor!ance !ay be left to a third person& whose decision shall
not be bindin "ntil it has been !ade known to both contractin parties. (n)
Art. 1'17. The deter!ination shall not be obliatory if it is evidently ine0"itable. (n s"ch case& the
co"rts shall decide what is e0"itable "nder the circ"!stances. (n)
Art. 1'11. Contracts take effect only between the parties& their assins and heirs& e)cept in case
where the rihts and obliations arisin fro! the contract are not trans!issible by their nat"re& or
by stip"lation or by provision of law. The heir is not liable beyond the val"e of the property he
received fro! the decedent.
(f a contract sho"ld contain so!e stip"lation in favor of a third person& he !ay de!and its
f"lfill!ent provided he co!!"nicated his acceptance to the oblior before its revocation. A !ere
incidental benefit or interest of a person is not s"fficient. The contractin parties !"st have clearly
and deliberately conferred a favor "pon a third person. (12+/a)
Art. 1'12. (n contracts creatin real rihts& third persons who co!e into possession of the ob.ect of
the contract are bo"nd thereby& s"b.ect to the provisions of the =ortae Law and the Land
-eistration Laws. (n)
Art. 1'1'. Creditors are protected in cases of contracts intended to defra"d the!. (n)
Art. 1'1*. Any third person who ind"ces another to violate his contract shall be liable for da!aes
to the other contractin party. (n)
Art. 1'1+. Contracts are perfected by !ere consent& and fro! that !o!ent the parties are bo"nd
not only to the f"lfill!ent of what has been e)pressly stip"lated b"t also to all the conse0"ences
which& accordin to their nat"re& !ay be in keepin with ood faith& "sae and law. (12+3)
Art. 1'1,. -eal contracts& s"ch as deposit& plede and Co!!odat"!& are not perfected "ntil the
delivery of the ob.ect of the obliation. (n)
Art. 1'1/. 6o one !ay contract in the na!e of another witho"t bein a"thori%ed by the latter& or
"nless he has by law a riht to represent hi!.
A contract entered into in the na!e of another by one who has no a"thority or leal representation&
or who has acted beyond his powers& shall be "nenforceable& "nless it is ratified& e)pressly or
i!pliedly& by the person on whose behalf it has been e)ec"ted& before it is revoked by the other
contractin party. (12+5a)

C9APT:- 2
:@@:6T(AL -:I?(@(T:@ #A C#6T-ACT@

$:6:-AL P-#>(@(#6@

Art. 1'13. There is no contract "nless the followin re0"isites conc"r<
(1) Consent of the contractin parties8
(2) #b.ect certain which is the s"b.ect !atter of the contract8
(') Ca"se of the obliation which is established. (12,1)
@:CT(#6 1. 1 Consent

Art. 1'15. Consent is !anifested by the !eetin of the offer and the acceptance "pon the thin and
the ca"se which are to constit"te the contract. The offer !"st be certain and the acceptance
absol"te. A 0"alified acceptance constit"tes a co"nter1offer.
Acceptance !ade by letter or telera! does not bind the offerer e)cept fro! the ti!e it ca!e to his
knowlede. The contract& in s"ch a case& is pres"!ed to have been entered into in the place where
the offer was !ade. (12,2a)
Art. 1'27. An acceptance !ay be e)press or i!plied. (n)
Art. 1'21. The person !akin the offer !ay fi) the ti!e& place& and !anner of acceptance& all of
which !"st be co!plied with. (n)
Art. 1'22. An offer !ade thro"h an aent is accepted fro! the ti!e acceptance is co!!"nicated
to hi!. (n)
Art. 1'2'. An offer beco!es ineffective "pon the death& civil interdiction& insanity& or insolvency of
either party before acceptance is conveyed. (n)
Art. 1'2*. 2hen the offerer has allowed the offeree a certain period to accept& the offer !ay be
withdrawn at any ti!e before acceptance by co!!"nicatin s"ch withdrawal& e)cept when the
option is fo"nded "pon a consideration& as so!ethin paid or pro!ised. (n)
Art. 1'2+. ?nless it appears otherwise& b"siness advertise!ents of thins for sale are not definite
offers& b"t !ere invitations to !ake an offer. (n)
Art. 1'2,. Advertise!ents for bidders are si!ply invitations to !ake proposals& and the advertiser
is not bo"nd to accept the hihest or lowest bidder& "nless the contrary appears. (n)
Art. 1'2/. The followin cannot ive consent to a contract<
(1) ?ne!ancipated !inors8
(2) (nsane or de!ented persons& and deaf1!"tes who do not know how to write. (12,'a)
Art. 1'23. Contracts entered into d"rin a l"cid interval are valid. Contracts areed to in a state of
dr"nkenness or d"rin a hypnotic spell are voidable. (n)
Art. 1'25. The incapacity declared in Article 1'2/ is s"b.ect to the !odifications deter!ined by
law& and is "nderstood to be witho"t pre."dice to special dis0"alifications established in the laws.
(12,*)
Art. 1''7. A contract where consent is iven thro"h !istake& violence& inti!idation& "nd"e
infl"ence& or fra"d is voidable. (12,+a)
Art. 1''1. (n order that !istake !ay invalidate consent& it sho"ld refer to the s"bstance of the thin
which is the ob.ect of the contract& or to those conditions which have principally !oved one or both
parties to enter into the contract.
=istake as to the identity or 0"alifications of one of the parties will vitiate consent only when s"ch
identity or 0"alifications have been the principal ca"se of the contract.
A si!ple !istake of acco"nt shall ive rise to its correction. (12,,a)
Art. 1''2. 2hen one of the parties is "nable to read& or if the contract is in a lan"ae not
"nderstood by hi!& and !istake or fra"d is alleed& the person enforcin the contract !"st show
that the ter!s thereof have been f"lly e)plained to the for!er. (n)
Art. 1'''. There is no !istake if the party allein it knew the do"bt& continency or risk affectin
the ob.ect of the contract. (n)
Art. 1''*. ="t"al error as to the leal effect of an aree!ent when the real p"rpose of the parties is
fr"strated& !ay vitiate consent. (n)
Art. 1''+. There is violence when in order to wrest consent& serio"s or irresistible force is
e!ployed.
There is inti!idation when one of the contractin parties is co!pelled by a reasonable and well1
ro"nded fear of an i!!inent and rave evil "pon his person or property& or "pon the person or
property of his spo"se& descendants or ascendants& to ive his consent.
To deter!ine the deree of inti!idation& the ae& se) and condition of the person shall be borne in
!ind.
A threat to enforce one;s clai! thro"h co!petent a"thority& if the clai! is ."st or leal& does not
vitiate consent. (12,/a)
Art. 1'',. >iolence or inti!idation shall ann"l the obliation& altho"h it !ay have been e!ployed
by a third person who did not take part in the contract. (12,3)
Art. 1''/. There is "nd"e infl"ence when a person takes i!proper advantae of his power over the
will of another& deprivin the latter of a reasonable freedo! of choice. The followin circ"!stances
shall be considered< the confidential& fa!ily& spirit"al and other relations between the parties& or the
fact that the person alleed to have been "nd"ly infl"enced was s"fferin fro! !ental weakness& or
was inorant or in financial distress. (n)
Art. 1''3. There is fra"d when& thro"h insidio"s words or !achinations of one of the contractin
parties& the other is ind"ced to enter into a contract which& witho"t the!& he wo"ld not have areed
to. (12,5)
Art. 1''5. Aail"re to disclose facts& when there is a d"ty to reveal the!& as when the parties are
bo"nd by confidential relations& constit"tes fra"d. (n)
Art. 1'*7. The "s"al e)aerations in trade& when the other party had an opport"nity to know the
facts& are not in the!selves fra"d"lent. (n)
Art. 1'*1. A !ere e)pression of an opinion does not sinify fra"d& "nless !ade by an e)pert and
the other party has relied on the for!er;s special knowlede. (n)
Art. 1'*2. =isrepresentation by a third person does not vitiate consent& "nless s"ch
!isrepresentation has created s"bstantial !istake and the sa!e is !"t"al. (n)
Art. 1'*'. =isrepresentation !ade in ood faith is not fra"d"lent b"t !ay constit"te error. (n)
Art. 1'**. (n order that fra"d !ay !ake a contract voidable& it sho"ld be serio"s and sho"ld not
have been e!ployed by both contractin parties.
(ncidental fra"d only oblies the person e!ployin it to pay da!aes. (12/7)
Art. 1'*+. @i!"lation of a contract !ay be absol"te or relative. The for!er takes place when the
parties do not intend to be bo"nd at all8 the latter& when the parties conceal their tr"e aree!ent. (n)
Art. 1'*,. An absol"tely si!"lated or fictitio"s contract is void. A relative si!"lation& when it does
not pre."dice a third person and is not intended for any p"rpose contrary to law& !orals& ood
c"sto!s& p"blic order or p"blic policy binds the parties to their real aree!ent. (n)

@:CT(#6 2. 1 #b.ect of Contracts

Art. 1'*/. All thins which are not o"tside the co!!erce of !en& incl"din f"t"re thins& !ay be
the ob.ect of a contract. All rihts which are not intrans!issible !ay also be the ob.ect of contracts.
6o contract !ay be entered into "pon f"t"re inheritance e)cept in cases e)pressly a"thori%ed by
law.
All services which are not contrary to law& !orals& ood c"sto!s& p"blic order or p"blic policy !ay
likewise be the ob.ect of a contract. (12/1a)
Art. 1'*3. (!possible thins or services cannot be the ob.ect of contracts. (12/2)
Art. 1'*5. The ob.ect of every contract !"st be deter!inate as to its kind. The fact that the 0"antity
is not deter!inate shall not be an obstacle to the e)istence of the contract& provided it is possible to
deter!ine the sa!e& witho"t the need of a new contract between the parties. (12/')

@:CT(#6 '. 1 Ca"se of Contracts

Art. 1'+7. (n onero"s contracts the ca"se is "nderstood to be& for each contractin party& the
prestation or pro!ise of a thin or service by the other8 in re!"neratory ones& the service or benefit
which is re!"nerated8 and in contracts of p"re beneficence& the !ere liberality of the benefactor.
(12/*)
Art. 1'+1. The partic"lar !otives of the parties in enterin into a contract are different fro! the
ca"se thereof. (n)
Art. 1'+2. Contracts witho"t ca"se& or with "nlawf"l ca"se& prod"ce no effect whatever. The ca"se
is "nlawf"l if it is contrary to law& !orals& ood c"sto!s& p"blic order or p"blic policy. (12/+a)
Art. 1'+'. The state!ent of a false ca"se in contracts shall render the! void& if it sho"ld not be
proved that they were fo"nded "pon another ca"se which is tr"e and lawf"l. (12/,)
Art. 1'+*. Altho"h the ca"se is not stated in the contract& it is pres"!ed that it e)ists and is lawf"l&
"nless the debtor proves the contrary. (12//)
Art. 1'++. :)cept in cases specified by law& lesion or inade0"acy of ca"se shall not invalidate a
contract& "nless there has been fra"d& !istake or "nd"e infl"ence. (n)

C9APT:- '
A#-= #A C#6T-ACT@

Art. 1'+,. Contracts shall be obliatory& in whatever for! they !ay have been entered into&
provided all the essential re0"isites for their validity are present. 9owever& when the law re0"ires
that a contract be in so!e for! in order that it !ay be valid or enforceable& or that a contract be
proved in a certain way& that re0"ire!ent is absol"te and indispensable. (n s"ch cases& the riht of
the parties stated in the followin article cannot be e)ercised. (12/3a)
Art. 1'+/. (f the law re0"ires a doc"!ent or other special for!& as in the acts and contracts
en"!erated in the followin article& the contractin parties !ay co!pel each other to observe that
for!& once the contract has been perfected. This riht !ay be e)ercised si!"ltaneo"sly with the
action "pon the contract. (12/5a)
Art. 1'+3. The followin !"st appear in a p"blic doc"!ent<
(1) Acts and contracts which have for their ob.ect the creation& trans!ission& !odification or
e)tin"ish!ent of real rihts over i!!ovable property8 sales of real property or of an interest
therein a overned by Articles 1*7'& 6o. 2& and 1*7+8
(2) The cession& rep"diation or ren"nciation of hereditary rihts or of those of the con."al
partnership of ains8
(') The power to ad!inister property& or any other power which has for its ob.ect an act appearin
or which sho"ld appear in a p"blic doc"!ent& or sho"ld pre."dice a third person8
(*) The cession of actions or rihts proceedin fro! an act appearin in a p"blic doc"!ent.
All other contracts where the a!o"nt involved e)ceeds five h"ndred pesos !"st appear in writin&
even a private one. B"t sales of oods& chattels or thins in action are overned by Articles& 1*7'&
6o. 2 and 1*7+. (1237a)

C9APT:- *
-:A#-=AT(#6 #A (6@T-?=:6T@ (n)

Art. 1'+5. 2hen& there havin been a !eetin of the !inds of the parties to a contract& their tr"e
intention is not e)pressed in the instr"!ent p"rportin to e!body the aree!ent& by reason of
!istake& fra"d& ine0"itable cond"ct or accident& one of the parties !ay ask for the refor!ation of
the instr"!ent to the end that s"ch tr"e intention !ay be e)pressed.
(f !istake& fra"d& ine0"itable cond"ct& or accident has prevented a !eetin of the !inds of the
parties& the proper re!edy is not refor!ation of the instr"!ent b"t ann"l!ent of the contract.
Art. 1',7. The principles of the eneral law on the refor!ation of instr"!ents are hereby adopted
insofar as they are not in conflict with the provisions of this Code.
Art. 1',1. 2hen a !"t"al !istake of the parties ca"ses the fail"re of the instr"!ent to disclose
their real aree!ent& said instr"!ent !ay be refor!ed.
Art. 1',2. (f one party was !istaken and the other acted fra"d"lently or ine0"itably in s"ch a way
that the instr"!ent does not show their tr"e intention& the for!er !ay ask for the refor!ation of the
instr"!ent.
Art. 1','. 2hen one party was !istaken and the other knew or believed that the instr"!ent did not
state their real aree!ent& b"t concealed that fact fro! the for!er& the instr"!ent !ay be refor!ed.
Art. 1',*. 2hen thro"h the inorance& lack of skill& nelience or bad faith on the part of the
person draftin the instr"!ent or of the clerk or typist& the instr"!ent does not e)press the tr"e
intention of the parties& the co"rts !ay order that the instr"!ent be refor!ed.
Art. 1',+. (f two parties aree "pon the !ortae or plede of real or personal property& b"t the
instr"!ent states that the property is sold absol"tely or with a riht of rep"rchase& refor!ation of
the instr"!ent is proper.
Art. 1',,. There shall be no refor!ation in the followin cases<
(1) @i!ple donations inter vivos wherein no condition is i!posed8
(2) 2ills8
(') 2hen the real aree!ent is void.
Art. 1',/. 2hen one of the parties has bro"ht an action to enforce the instr"!ent& he cannot
s"bse0"ently ask for its refor!ation.
Art. 1',3. -efor!ation !ay be ordered at the instance of either party or his s"ccessors in interest&
if the !istake was !"t"al8 otherwise& "pon petition of the in."red party& or his heirs and assins.
Art. 1',5. The proced"re for the refor!ation of instr"!ent shall be overned by r"les of co"rt to
be pro!"lated by the @"pre!e Co"rt.

C9APT:- +
(6T:-P-:TAT(#6 #A C#6T-ACT@

Art. 1'/7. (f the ter!s of a contract are clear and leave no do"bt "pon the intention of the
contractin parties& the literal !eanin of its stip"lations shall control.
(f the words appear to be contrary to the evident intention of the parties& the latter shall prevail over
the for!er. (1231)
Art. 1'/1. (n order to ."de the intention of the contractin parties& their conte!poraneo"s and
s"bse0"ent acts shall be principally considered. (1232)
Art. 1'/2. 9owever eneral the ter!s of a contract !ay be& they shall not be "nderstood to
co!prehend thins that are distinct and cases that are different fro! those "pon which the parties
intended to aree. (123')
Art. 1'/'. (f so!e stip"lation of any contract sho"ld ad!it of several !eanins& it shall be
"nderstood as bearin that i!port which is !ost ade0"ate to render it effect"al. (123*)
Art. 1'/*. The vario"s stip"lations of a contract shall be interpreted toether& attrib"tin to the
do"btf"l ones that sense which !ay res"lt fro! all of the! taken .ointly. (123+)
Art. 1'/+. 2ords which !ay have different sinifications shall be "nderstood in that which is !ost
in keepin with the nat"re and ob.ect of the contract. (123,)
Art. 1'/,. The "sae or c"sto! of the place shall be borne in !ind in the interpretation of the
a!bi"ities of a contract& and shall fill the o!ission of stip"lations which are ordinarily
established. (123/)
Art. 1'//. The interpretation of obsc"re words or stip"lations in a contract shall not favor the party
who ca"sed the obsc"rity. (1233)
Art. 1'/3. 2hen it is absol"tely i!possible to settle do"bts by the r"les established in the
precedin articles& and the do"bts refer to incidental circ"!stances of a rat"ito"s contract& the
least trans!ission of rihts and interests shall prevail. (f the contract is onero"s& the do"bt shall be
settled in favor of the reatest reciprocity of interests.
(f the do"bts are cast "pon the principal ob.ect of the contract in s"ch a way that it cannot be
known what !ay have been the intention or will of the parties& the contract shall be n"ll and void.
(1235)
Art. 1'/5. The principles of interpretation stated in -"le 12' of the -"les of Co"rt shall likewise
be observed in the constr"ction of contracts. (n)

C9APT:- ,
-:@C(@@(BL: C#6T-ACT@

Art. 1'37. Contracts validly areed "pon !ay be rescinded in the cases established by law. (1257)
Art. 1'31. The followin contracts are rescissible<
(1) Those which are entered into by "ardians whenever the wards who! they represent s"ffer
lesion by !ore than one1fo"rth of the val"e of the thins which are the ob.ect thereof8
(2) Those areed "pon in representation of absentees& if the latter s"ffer the lesion stated in the
precedin n"!ber8
(') Those "ndertaken in fra"d of creditors when the latter cannot in any other !anner collect the
clai!s d"e the!8
(*) Those which refer to thins "nder litiation if they have been entered into by the defendant
witho"t the knowlede and approval of the litiants or of co!petent ."dicial a"thority8
(+) All other contracts specially declared by law to be s"b.ect to rescission. (1251a)
Art. 1'32. Pay!ents !ade in a state of insolvency for obliations to whose f"lfill!ent the debtor
co"ld not be co!pelled at the ti!e they were effected& are also rescissible. (1252)
Art. 1'3'. The action for rescission is s"bsidiary8 it cannot be instit"ted e)cept when the party
s"fferin da!ae has no other leal !eans to obtain reparation for the sa!e. (125*)
Art. 1'3*. -escission shall be only to the e)tent necessary to cover the da!aes ca"sed. (n)
Art. 1'3+. -escission creates the obliation to ret"rn the thins which were the ob.ect of the
contract& toether with their fr"its& and the price with its interest8 conse0"ently& it can be carried o"t
only when he who de!ands rescission can ret"rn whatever he !ay be oblied to restore.
6either shall rescission take place when the thins which are the ob.ect of the contract are leally
in the possession of third persons who did not act in bad faith.
(n this case& inde!nity for da!aes !ay be de!anded fro! the person ca"sin the loss. (125+)
Art. 1'3,. -escission referred to in 6os. 1 and 2 of Article 1'31 shall not take place with respect to
contracts approved by the co"rts. (125,a)
Art. 1'3/. All contracts by virt"e of which the debtor alienates property by rat"ito"s title are
pres"!ed to have been entered into in fra"d of creditors& when the donor did not reserve s"fficient
property to pay all debts contracted before the donation.
Alienations by onero"s title are also pres"!ed fra"d"lent when !ade by persons aainst who!
so!e ."d!ent has been iss"ed. The decision or attach!ent need not refer to the property
alienated& and need not have been obtained by the party seekin the rescission.
(n addition to these pres"!ptions& the desin to defra"d creditors !ay be proved in any other
!anner reconi%ed by the law of evidence. (125/a)
Art. 1'33. 2hoever ac0"ires in bad faith the thins alienated in fra"d of creditors& shall inde!nify
the latter for da!aes s"ffered by the! on acco"nt of the alienation& whenever& d"e to any ca"se& it
sho"ld be i!possible for hi! to ret"rn the!.
(f there are two or !ore alienations& the first ac0"irer shall be liable first& and so on s"ccessively.
(1253a)
Art. 1'35. The action to clai! rescission !"st be co!!enced within fo"r years.
Aor persons "nder "ardianship and for absentees& the period of fo"r years shall not bein "ntil the
ter!ination of the for!er;s incapacity& or "ntil the do!icile of the latter is known. (1255)

C9APT:- /
>#(DABL: C#6T-ACT@

Art. 1'57. The followin contracts are voidable or ann"llable& even tho"h there !ay have been no
da!ae to the contractin parties<
(1) Those where one of the parties is incapable of ivin consent to a contract8
(2) Those where the consent is vitiated by !istake& violence& inti!idation& "nd"e infl"ence or
fra"d.
These contracts are bindin& "nless they are ann"lled by a proper action in co"rt. They are
s"sceptible of ratification. (n)
Art. 1'51. The action for ann"l!ent shall be bro"ht within fo"r years.
This period shall bein<
(n cases of inti!idation& violence or "nd"e infl"ence& fro! the ti!e the defect of the consent
ceases.
(n case of !istake or fra"d& fro! the ti!e of the discovery of the sa!e.
And when the action refers to contracts entered into by !inors or other incapacitated persons& fro!
the ti!e the "ardianship ceases. (1'71a)
Art. 1'52. -atification e)tin"ishes the action to ann"l a voidable contract. (1'75a)
Art. 1'5'. -atification !ay be effected e)pressly or tacitly. (t is "nderstood that there is a tacit
ratification if& with knowlede of the reason which renders the contract voidable and s"ch reason
havin ceased& the person who has a riht to invoke it sho"ld e)ec"te an act which necessarily
i!plies an intention to waive his riht. (1'11a)
Art. 1'5*. -atification !ay be effected by the "ardian of the incapacitated person. (n)
Art. 1'5+. -atification does not re0"ire the confor!ity of the contractin party who has no riht to
brin the action for ann"l!ent. (1'12)
Art. 1'5,. -atification cleanses the contract fro! all its defects fro! the !o!ent it was
constit"ted. (1'1')
Art. 1'5/. The action for the ann"l!ent of contracts !ay be instit"ted by all who are thereby
oblied principally or s"bsidiarily. 9owever& persons who are capable cannot allee the incapacity
of those with who! they contracted8 nor can those who e)erted inti!idation& violence& or "nd"e
infl"ence& or e!ployed fra"d& or ca"sed !istake base their action "pon these flaws of the contract.
(1'72a)
Art. 1'53. An obliation havin been ann"lled& the contractin parties shall restore to each other
the thins which have been the s"b.ect !atter of the contract& with their fr"its& and the price with its
interest& e)cept in cases provided by law.
(n obliations to render service& the val"e thereof shall be the basis for da!aes. (1'7'a)
Art. 1'55. 2hen the defect of the contract consists in the incapacity of one of the parties& the
incapacitated person is not oblied to !ake any restit"tion e)cept insofar as he has been benefited
by the thin or price received by hi!. (1'7*)
Art. 1*77. 2henever the person oblied by the decree of ann"l!ent to ret"rn the thin can not do
so beca"se it has been lost thro"h his fa"lt& he shall ret"rn the fr"its received and the val"e of the
thin at the ti!e of the loss& with interest fro! the sa!e date. (1'7/a)
Art. 1*71. The action for ann"l!ent of contracts shall be e)tin"ished when the thin which is the
ob.ect thereof is lost thro"h the fra"d or fa"lt of the person who has a riht to instit"te the
proceedins.
(f the riht of action is based "pon the incapacity of any one of the contractin parties& the loss of
the thin shall not be an obstacle to the s"ccess of the action& "nless said loss took place thro"h
the fra"d or fa"lt of the plaintiff. (1'1*a)
Art. 1*72. As lon as one of the contractin parties does not restore what in virt"e of the decree of
ann"l!ent he is bo"nd to ret"rn& the other cannot be co!pelled to co!ply with what is inc"!bent
"pon hi!. (1'73)

C9APT:- 3
?6:6A#-C:ABL: C#6T-ACT@ (n)

Art. 1*7'. The followin contracts are "nenforceable& "nless they are ratified<
(1) Those entered into in the na!e of another person by one who has been iven no a"thority or
leal representation& or who has acted beyond his powers8
(2) Those that do not co!ply with the @tat"te of Ara"ds as set forth in this n"!ber. (n the followin
cases an aree!ent hereafter !ade shall be "nenforceable by action& "nless the sa!e& or so!e note
or !e!orand"!& thereof& be in writin& and s"bscribed by the party chared& or by his aent8
evidence& therefore& of the aree!ent cannot be received witho"t the writin& or a secondary
evidence of its contents<
(a) An aree!ent that by its ter!s is not to be perfor!ed within a year fro! the !akin thereof8
(b) A special pro!ise to answer for the debt& defa"lt& or !iscarriae of another8
(c) An aree!ent !ade in consideration of !arriae& other than a !"t"al pro!ise to !arry8
(d) An aree!ent for the sale of oods& chattels or thins in action& at a price not less than five
h"ndred pesos& "nless the b"yer accept and receive part of s"ch oods and chattels& or the
evidences& or so!e of the!& of s"ch thins in action or pay at the ti!e so!e part of the p"rchase
!oney8 b"t when a sale is !ade by a"ction and entry is !ade by the a"ctioneer in his sales book& at
the ti!e of the sale& of the a!o"nt and kind of property sold& ter!s of sale& price& na!es of the
p"rchasers and person on whose acco"nt the sale is !ade& it is a s"fficient !e!orand"!8
(e) An aree!ent of the leasin for a loner period than one year& or for the sale of real property or
of an interest therein8
(f) A representation as to the credit of a third person.
(') Those where both parties are incapable of ivin consent to a contract.
Art. 1*7*. ?na"thori%ed contracts are overned by Article 1'1/ and the principles of aency in
Title E of this Book.
Art. 1*7+. Contracts infrinin the @tat"te of Ara"ds& referred to in 6o. 2 of Article 1*7'& are
ratified by the fail"re to ob.ect to the presentation of oral evidence to prove the sa!e& or by the
acceptance of benefit "nder the!.
Art. 1*7,. 2hen a contract is enforceable "nder the @tat"te of Ara"ds& and a p"blic doc"!ent is
necessary for its reistration in the -eistry of Deeds& the parties !ay avail the!selves of the riht
"nder Article 1'+/.
Art. 1*7/. (n a contract where both parties are incapable of ivin consent& e)press or i!plied
ratification by the parent& or "ardian& as the case !ay be& of one of the contractin parties shall
ive the contract the sa!e effect as if only one of the! were incapacitated.
(f ratification is !ade by the parents or "ardians& as the case !ay be& of both contractin parties&
the contract shall be validated fro! the inception.
Art. 1*73. ?nenforceable contracts cannot be assailed by third persons.

C9APT:- 5
>#(D A6D (6:E(@T:6T C#6T-ACT@

Art. 1*75. The followin contracts are ine)istent and void fro! the beinnin<
(1) Those whose ca"se& ob.ect or p"rpose is contrary to law& !orals& ood c"sto!s& p"blic order or
p"blic policy8
(2) Those which are absol"tely si!"lated or fictitio"s8
(') Those whose ca"se or ob.ect did not e)ist at the ti!e of the transaction8
(*) Those whose ob.ect is o"tside the co!!erce of !en8
(+) Those which conte!plate an i!possible service8
(,) Those where the intention of the parties relative to the principal ob.ect of the contract cannot be
ascertained8
(/) Those e)pressly prohibited or declared void by law.
These contracts cannot be ratified. 6either can the riht to set "p the defense of illeality be
waived.
Art. 1*17. The action or defense for the declaration of the ine)istence of a contract does not
prescribe.
Art. 1*11. 2hen the n"llity proceeds fro! the illeality of the ca"se or ob.ect of the contract& and
the act constit"tes a cri!inal offense& both parties bein in pari delicto& they shall have no action
aainst each other& and both shall be prosec"ted. =oreover& the provisions of the Penal Code
relative to the disposal of effects or instr"!ents of a cri!e shall be applicable to the thins or the
price of the contract.
This r"le shall be applicable when only one of the parties is "ilty8 b"t the innocent one !ay clai!
what he has iven& and shall not be bo"nd to co!ply with his pro!ise. (1'7+)
Art. 1*12. (f the act in which the "nlawf"l or forbidden ca"se consists does not constit"te a
cri!inal offense& the followin r"les shall be observed<
(1) 2hen the fa"lt is on the part of both contractin parties& neither !ay recover what he has iven
by virt"e of the contract& or de!and the perfor!ance of the other;s "ndertakin8
(2) 2hen only one of the contractin parties is at fa"lt& he cannot recover what he has iven by
reason of the contract& or ask for the f"lfill!ent of what has been pro!ised hi!. The other& who is
not at fa"lt& !ay de!and the ret"rn of what he has iven witho"t any obliation to co!ply his
pro!ise. (1'7,)
Art. 1*1'. (nterest paid in e)cess of the interest allowed by the "s"ry laws !ay be recovered by the
debtor& with interest thereon fro! the date of the pay!ent.
Art. 1*1*. 2hen !oney is paid or property delivered for an illeal p"rpose& the contract !ay be
rep"diated by one of the parties before the p"rpose has been acco!plished& or before any da!ae
has been ca"sed to a third person. (n s"ch case& the co"rts !ay& if the p"blic interest will th"s be
s"bserved& allow the party rep"diatin the contract to recover the !oney or property.
Art. 1*1+. 2here one of the parties to an illeal contract is incapable of ivin consent& the co"rts
!ay& if the interest of ."stice so de!ands allow recovery of !oney or property delivered by the
incapacitated person.
Art. 1*1,. 2hen the aree!ent is not illeal per se b"t is !erely prohibited& and the prohibition by
the law is desinated for the protection of the plaintiff& he !ay& if p"blic policy is thereby
enhanced& recover what he has paid or delivered.
Art. 1*1/. 2hen the price of any article or co!!odity is deter!ined by stat"te& or by a"thority of
law& any person payin any a!o"nt in e)cess of the !a)i!"! price allowed !ay recover s"ch
e)cess.
Art. 1*13. 2hen the law fi)es& or a"thori%es the fi)in of the !a)i!"! n"!ber of ho"rs of labor&
and a contract is entered into whereby a laborer "ndertakes to work loner than the !a)i!"! th"s
fi)ed& he !ay de!and additional co!pensation for service rendered beyond the ti!e li!it.
Art. 1*15. 2hen the law sets& or a"thori%es the settin of a !ini!"! wae for laborers& and a
contract is areed "pon by which a laborer accepts a lower wae& he shall be entitled to recover the
deficiency.
Art. 1*27. (n case of a divisible contract& if the illeal ter!s can be separated fro! the leal ones&
the latter !ay be enforced.
Art. 1*21. The defense of illeality of contract is not available to third persons whose interests are
not directly affected.
Art. 1*22. A contract which is the direct res"lt of a previo"s illeal contract& is also void and
ine)istent.

Title (((. 1 6AT?-AL #BL($AT(#6@

Art. 1*2'. #bliations are civil or nat"ral. Civil obliations ive a riht of action to co!pel their
perfor!ance. 6at"ral obliations& not bein based on positive law b"t on e0"ity and nat"ral law& do
not rant a riht of action to enforce their perfor!ance& b"t after vol"ntary f"lfill!ent by the
oblior& they a"thori%e the retention of what has been delivered or rendered by reason thereof.
@o!e nat"ral obliations are set forth in the followin articles.
Art. 1*2*. 2hen a riht to s"e "pon a civil obliation has lapsed by e)tinctive prescription& the
oblior who vol"ntarily perfor!s the contract cannot recover what he has delivered or the val"e of
the service he has rendered.
Art. 1*2+. 2hen witho"t the knowlede or aainst the will of the debtor& a third person pays a debt
which the oblior is not leally bo"nd to pay beca"se the action thereon has prescribed& b"t the
debtor later vol"ntarily rei!b"rses the third person& the oblior cannot recover what he has paid.
Art. 1*2,. 2hen a !inor between eihteen and twenty1one years of ae who has entered into a
contract witho"t the consent of the parent or "ardian& after the ann"l!ent of the contract
vol"ntarily ret"rns the whole thin or price received& notwithstandin the fact the he has not been
benefited thereby& there is no riht to de!and the thin or price th"s ret"rned.
Art. 1*2/. 2hen a !inor between eihteen and twenty1one years of ae& who has entered into a
contract witho"t the consent of the parent or "ardian& vol"ntarily pays a s"! of !oney or delivers
a f"nible thin in f"lfill!ent of the obliation& there shall be no riht to recover the sa!e fro! the
obliee who has spent or cons"!ed it in ood faith. (11,7A)
Art. 1*23. 2hen& after an action to enforce a civil obliation has failed the defendant vol"ntarily
perfor!s the obliation& he cannot de!and the ret"rn of what he has delivered or the pay!ent of
the val"e of the service he has rendered.
Art. 1*25. 2hen a testate or intestate heir vol"ntarily pays a debt of the decedent e)ceedin the
val"e of the property which he received by will or by the law of intestacy fro! the estate of the
deceased& the pay!ent is valid and cannot be rescinded by the payer.
Art. 1*'7. 2hen a will is declared void beca"se it has not been e)ec"ted in accordance with the
for!alities re0"ired by law& b"t one of the intestate heirs& after the settle!ent of the debts of the
deceased& pays a leacy in co!pliance with a cla"se in the defective will& the pay!ent is effective
and irrevocable.

Title (>. 1 :@T#PP:L (n)

Art. 1*'1. Thro"h estoppel an ad!ission or representation is rendered concl"sive "pon the person
!akin it& and cannot be denied or disproved as aainst the person relyin thereon.
Art. 1*'2. The principles of estoppel are hereby adopted insofar as they are not in conflict with the
provisions of this Code& the Code of Co!!erce& the -"les of Co"rt and special laws.
Art. 1*''. :stoppel !ay be in pais or by deed.
Art. 1*'*. 2hen a person who is not the owner of a thin sells or alienates and delivers it& and later
the seller or rantor ac0"ires title thereto& s"ch title passes by operation of law to the b"yer or
rantee.
Art. 1*'+. (f a person in representation of another sells or alienates a thin& the for!er cannot
s"bse0"ently set "p his own title as aainst the b"yer or rantee.
Art. 1*',. A lessee or a bailee is estopped fro! assertin title to the thin leased or received& as
aainst the lessor or bailor.
Art. 1*'/. 2hen in a contract between third persons concernin i!!ovable property& one of the!
is !isled by a person with respect to the ownership or real riht over the real estate& the latter is
precl"ded fro! assertin his leal title or interest therein& provided all these re0"isites are present<
(1) There !"st be fra"d"lent representation or wronf"l conceal!ent of facts known to the party
estopped8
(2) The party precl"ded !"st intend that the other sho"ld act "pon the facts as !isrepresented8
(') The party !isled !"st have been "naware of the tr"e facts8 and
(*) The party defra"ded !"st have acted in accordance with the !isrepresentation.
Art. 1*'3. #ne who has allowed another to ass"!e apparent ownership of personal property for the
p"rpose of !akin any transfer of it& cannot& if he received the s"! for which a plede has been
constit"ted& set "p his own title to defeat the plede of the property& !ade by the other to a pledee
who received the sa!e in ood faith and for val"e.
Art. 1*'5. :stoppel is effective only as between the parties thereto or their s"ccessors in interest.
Title >. 1 T-?@T@ (n)

C9APT:- 1
$:6:-AL P-#>(@(#6@

Art. 1**7. A person who establishes a tr"st is called the tr"stor8 one in who! confidence is reposed
as reards property for the benefit of another person is known as the tr"stee8 and the person for
whose benefit the tr"st has been created is referred to as the beneficiary.
Art. 1**1. Tr"sts are either e)press or i!plied. :)press tr"sts are created by the intention of the
tr"stor or of the parties. (!plied tr"sts co!e into bein by operation of law.
Art. 1**2. The principles of the eneral law of tr"sts& insofar as they are not in conflict with this
Code& the Code of Co!!erce& the -"les of Co"rt and special laws are hereby adopted.

C9APT:- 2
:EP-:@@ T-?@T@

Art. 1**'. 6o e)press tr"sts concernin an i!!ovable or any interest therein !ay be proved by
parol evidence.
Art. 1***. 6o partic"lar words are re0"ired for the creation of an e)press tr"st& it bein s"fficient
that a tr"st is clearly intended.
Art. 1**+. 6o tr"st shall fail beca"se the tr"stee appointed declines the desination& "nless the
contrary sho"ld appear in the instr"!ent constit"tin the tr"st.
Art. 1**,. Acceptance by the beneficiary is necessary. 6evertheless& if the tr"st i!poses no onero"s
condition "pon the beneficiary& his acceptance shall be pres"!ed& if there is no proof to the
contrary.

C9APT:- '
(=PL(:D T-?@T@

Art. 1**/. The en"!eration of the followin cases of i!plied tr"st does not e)cl"de others
established by the eneral law of tr"st& b"t the li!itation laid down in Article 1**2 shall be
applicable.
Art. 1**3. There is an i!plied tr"st when property is sold& and the leal estate is ranted to one
party b"t the price is paid by another for the p"rpose of havin the beneficial interest of the
property. The for!er is the tr"stee& while the latter is the beneficiary. 9owever& if the person to
who! the title is conveyed is a child& leiti!ate or illeiti!ate& of the one payin the price of the
sale& no tr"st is i!plied by law& it bein disp"tably pres"!ed that there is a ift in favor of the
child.
Art. 1**5. There is also an i!plied tr"st when a donation is !ade to a person b"t it appears that
altho"h the leal estate is trans!itted to the donee& he nevertheless is either to have no beneficial
interest or only a part thereof.
Art. 1*+7. (f the price of a sale of property is loaned or paid by one person for the benefit of
another and the conveyance is !ade to the lender or payor to sec"re the pay!ent of the debt& a tr"st
arises by operation of law in favor of the person to who! the !oney is loaned or for who! its is
paid. The latter !ay redee! the property and co!pel a conveyance thereof to hi!.
Art. 1*+1. 2hen land passes by s"ccession to any person and he ca"ses the leal title to be p"t in
the na!e of another& a tr"st is established by i!plication of law for the benefit of the tr"e owner.
Art. 1*+2. (f two or !ore persons aree to p"rchase property and by co!!on consent the leal title
is taken in the na!e of one of the! for the benefit of all& a tr"st is created by force of law in favor
of the others in proportion to the interest of each.
Art. 1*+'. 2hen property is conveyed to a person in reliance "pon his declared intention to hold it
for& or transfer it to another or the rantor& there is an i!plied tr"st in favor of the person whose
benefit is conte!plated.
Art. 1*+*. (f an absol"te conveyance of property is !ade in order to sec"re the perfor!ance of an
obliation of the rantor toward the rantee& a tr"st by virt"e of law is established. (f the f"lfill!ent
of the obliation is offered by the rantor when it beco!es d"e& he !ay de!and the reconveyance
of the property to hi!.
Art. 1*++. 2hen any tr"stee& "ardian or other person holdin a fid"ciary relationship "ses tr"st
f"nds for the p"rchase of property and ca"ses the conveyance to be !ade to hi! or to a third
person& a tr"st is established by operation of law in favor of the person to who! the f"nds belon.
Art. 1*+,. (f property is ac0"ired thro"h !istake or fra"d& the person obtainin it is& by force of
law& considered a tr"stee of an i!plied tr"st for the benefit of the person fro! who! the property
co!es.
Art. 1*+/. An i!plied tr"st !ay be proved by oral evidence.

Title >(. 1 @AL:@

C9APT:- 1
6AT?-: A6D A#-= #A T9: C#6T-ACT

Art. 1*+3. By the contract of sale one of the contractin parties obliates hi!self to transfer the
ownership and to deliver a deter!inate thin& and the other to pay therefor a price certain in !oney
or its e0"ivalent.
A contract of sale !ay be absol"te or conditional. (1**+a)
Art. 1*+5. The thin !"st be licit and the vendor !"st have a riht to transfer the ownership
thereof at the ti!e it is delivered. (n)
Art. 1*,7. A thin is deter!inate when it is partic"larly desinated or physical sereated fro! all
other of the sa!e class.
The re0"isite that a thin be deter!inate is satisfied if at the ti!e the contract is entered into& the
thin is capable of bein !ade deter!inate witho"t the necessity of a new or f"rther aree!ent
between the parties. (n)
Art. 1*,1. Thins havin a potential e)istence !ay be the ob.ect of the contract of sale.
The efficacy of the sale of a !ere hope or e)pectancy is dee!ed s"b.ect to the condition that the
thin will co!e into e)istence.
The sale of a vain hope or e)pectancy is void. (n)
Art. 1*,2. The oods which for! the s"b.ect of a contract of sale !ay be either e)istin oods&
owned or possessed by the seller& or oods to be !an"fact"red& raised& or ac0"ired by the seller
after the perfection of the contract of sale& in this Title called "f"t"re oods."
There !ay be a contract of sale of oods& whose ac0"isition by the seller depends "pon a
continency which !ay or !ay not happen. (n)
Art. 1*,'. The sole owner of a thin !ay sell an "ndivided interest therein. (n)
Art. 1*,*. (n the case of f"nible oods& there !ay be a sale of an "ndivided share of a specific
!ass& tho"h the seller p"rports to sell and the b"yer to b"y a definite n"!ber& weiht or !eas"re
of the oods in the !ass& and tho"h the n"!ber& weiht or !eas"re of the oods in the !ass is
"ndeter!ined. By s"ch a sale the b"yer beco!es owner in co!!on of s"ch a share of the !ass as
the n"!ber& weiht or !eas"re bo"ht bears to the n"!ber& weiht or !eas"re of the !ass. (f the
!ass contains less than the n"!ber& weiht or !eas"re bo"ht& the b"yer beco!es the owner of the
whole !ass and the seller is bo"nd to !ake ood the deficiency fro! oods of the sa!e kind and
0"ality& "nless a contrary intent appears. (n)
Art. 1*,+. Thins s"b.ect to a resol"tory condition !ay be the ob.ect of the contract of sale. (n)
Art. 1*,,. (n constr"in a contract containin provisions characteristic of both the contract of sale
and of the contract of aency to sell& the essential cla"ses of the whole instr"!ent shall be
considered. (n)
Art. 1*,/. A contract for the delivery at a certain price of an article which the vendor in the
ordinary co"rse of his b"siness !an"fact"res or proc"res for the eneral !arket& whether the sa!e
is on hand at the ti!e or not& is a contract of sale& b"t if the oods are to be !an"fact"red specially
for the c"sto!er and "pon his special order& and not for the eneral !arket& it is a contract for a
piece of work. (n)
Art. 1*,3. (f the consideration of the contract consists partly in !oney& and partly in another thin&
the transaction shall be characteri%ed by the !anifest intention of the parties. (f s"ch intention does
not clearly appear& it shall be considered a barter if the val"e of the thin iven as a part of the
consideration e)ceeds the a!o"nt of the !oney or its e0"ivalent8 otherwise& it is a sale. (1**,a)
Art. 1*,5. (n order that the price !ay be considered certain& it shall be s"fficient that it be so with
reference to another thin certain& or that the deter!ination thereof be left to the ."d!ent of a
special person or persons.
@ho"ld s"ch person or persons be "nable or "nwillin to fi) it& the contract shall be inefficacio"s&
"nless the parties s"bse0"ently aree "pon the price.
(f the third person or persons acted in bad faith or by !istake& the co"rts !ay fi) the price.
2here s"ch third person or persons are prevented fro! fi)in the price or ter!s by fa"lt of the
seller or the b"yer& the party not in fa"lt !ay have s"ch re!edies aainst the party in fa"lt as are
allowed the seller or the b"yer& as the case !ay be. (1**/a)
Art. 1*/7. $ross inade0"acy of price does not affect a contract of sale& e)cept as it !ay indicate a
defect in the consent& or that the parties really intended a donation or so!e other act or contract. (n)
Art. 1*/1. (f the price is si!"lated& the sale is void& b"t the act !ay be shown to have been in
reality a donation& or so!e other act or contract. (n)
Art. 1*/2. The price of sec"rities& rain& li0"ids& and other thins shall also be considered certain&
when the price fi)ed is that which the thin sold wo"ld have on a definite day& or in a partic"lar
e)chane or !arket& or when an a!o"nt is fi)ed above or below the price on s"ch day& or in s"ch
e)chane or !arket& provided said a!o"nt be certain. (1**3)
Art. 1*/'. The fi)in of the price can never be left to the discretion of one of the contractin
parties. 9owever& if the price fi)ed by one of the parties is accepted by the other& the sale is
perfected. (1**5a)
Art. 1*/*. 2here the price cannot be deter!ined in accordance with the precedin articles& or in
any other !anner& the contract is inefficacio"s. 9owever& if the thin or any part thereof has been
delivered to and appropriated by the b"yer he !"st pay a reasonable price therefor. 2hat is a
reasonable price is a 0"estion of fact dependent on the circ"!stances of each partic"lar case. (n)
Art. 1*/+. The contract of sale is perfected at the !o!ent there is a !eetin of !inds "pon the
thin which is the ob.ect of the contract and "pon the price.
Aro! that !o!ent& the parties !ay reciprocally de!and perfor!ance& s"b.ect to the provisions of
the law overnin the for! of contracts. (1*+7a)
Art. 1*/,. (n the case of a sale by a"ction<
(1) 2here oods are p"t "p for sale by a"ction in lots& each lot is the s"b.ect of a separate contract
of sale.
(2) A sale by a"ction is perfected when the a"ctioneer anno"nces its perfection by the fall of the
ha!!er& or in other c"sto!ary !anner. ?ntil s"ch anno"nce!ent is !ade& any bidder !ay retract
his bid8 and the a"ctioneer !ay withdraw the oods fro! the sale "nless the a"ction has been
anno"nced to be witho"t reserve.
(') A riht to bid !ay be reserved e)pressly by or on behalf of the seller& "nless otherwise provided
by law or by stip"lation.
(*) 2here notice has not been iven that a sale by a"ction is s"b.ect to a riht to bid on behalf of
the seller& it shall not be lawf"l for the seller to bid hi!self or to e!ploy or ind"ce any person to
bid at s"ch sale on his behalf or for the a"ctioneer& to e!ploy or ind"ce any person to bid at s"ch
sale on behalf of the seller or knowinly to take any bid fro! the seller or any person e!ployed by
hi!. Any sale contravenin this r"le !ay be treated as fra"d"lent by the b"yer. (n)
Art. 1*//. The ownership of the thin sold shall be transferred to the vendee "pon the act"al or
constr"ctive delivery thereof. (n)
Art. 1*/3. The parties !ay stip"late that ownership in the thin shall not pass to the p"rchaser "ntil
he has f"lly paid the price. (n)
Art. 1*/5. A pro!ise to b"y and sell a deter!inate thin for a price certain is reciprocally
de!andable.
An accepted "nilateral pro!ise to b"y or to sell a deter!inate thin for a price certain is bindin
"pon the pro!issor if the pro!ise is s"pported by a consideration distinct fro! the price. (1*+1a)
Art. 1*37. Any in."ry to or benefit fro! the thin sold& after the contract has been perfected& fro!
the !o!ent of the perfection of the contract to the ti!e of delivery& shall be overned by Articles
11,' to 11,+& and 12,2.
This r"le shall apply to the sale of f"nible thins& !ade independently and for a sinle price& or
witho"t consideration of their weiht& n"!ber& or !eas"re.
@ho"ld f"nible thins be sold for a price fi)ed accordin to weiht& n"!ber& or !eas"re& the risk
shall not be i!p"ted to the vendee "ntil they have been weihed& co"nted& or !eas"red and
delivered& "nless the latter has inc"rred in delay. (1*+2a)
Art. 1*31. (n the contract of sale of oods by description or by sa!ple& the contract !ay be
rescinded if the b"lk of the oods delivered do not correspond with the description or the sa!ple&
and if the contract be by sa!ple as well as description& it is not s"fficient that the b"lk of oods
correspond with the sa!ple if they do not also correspond with the description.
The b"yer shall have a reasonable opport"nity of co!parin the b"lk with the description or the
sa!ple. (n)
Art. 1*32. 2henever earnest !oney is iven in a contract of sale& it shall be considered as part of
the price and as proof of the perfection of the contract. (1*+*a)
Art. 1*3'. @"b.ect to the provisions of the @tat"te of Ara"ds and of any other applicable stat"te& a
contract of sale !ay be !ade in writin& or by word of !o"th& or partly in writin and partly by
word of !o"th& or !ay be inferred fro! the cond"ct of the parties. (n)
Art. 1*3*. (n a contract of sale of personal property the price of which is payable in install!ents&
the vendor !ay e)ercise any of the followin re!edies<
(1) :)act f"lfill!ent of the obliation& sho"ld the vendee fail to pay8
(2) Cancel the sale& sho"ld the vendee;s fail"re to pay cover two or !ore install!ents8
(') Aoreclose the chattel !ortae on the thin sold& if one has been constit"ted& sho"ld the
vendee;s fail"re to pay cover two or !ore install!ents. (n this case& he shall have no f"rther action
aainst the p"rchaser to recover any "npaid balance of the price. Any aree!ent to the contrary
shall be void. (1*+*1A1a)
Art. 1*3+. The precedin article shall be applied to contracts p"rportin to be leases of personal
property with option to b"y& when the lessor has deprived the lessee of the possession or en.oy!ent
of the thin. (1*+*1A1a)
Art. 1*3,. (n the case referred to in two precedin articles& a stip"lation that the install!ents or
rents paid shall not be ret"rned to the vendee or lessee shall be valid insofar as the sa!e !ay not be
"nconscionable "nder the circ"!stances. (n)
Art. 1*3/. The e)penses for the e)ec"tion and reistration of the sale shall be borne by the vendor&
"nless there is a stip"lation to the contrary. (1*++a)
Art. 1*33. The e)propriation of property for p"blic "se is overned by special laws. (1*+,)

C9APT:- 2
CAPAC(TF T# B?F #- @:LL

Art. 1*35. All persons who are a"thori%ed in this Code to obliate the!selves& !ay enter into a
contract of sale& savin the !odifications contained in the followin articles.
2here necessaries are those sold and delivered to a !inor or other person witho"t capacity to act&
he !"st pay a reasonable price therefor. 6ecessaries are those referred to in Article 257. (1*+/a)
Art. 1*57. The h"sband and the wife cannot sell property to each other& e)cept<
(1) 2hen a separation of property was areed "pon in the !arriae settle!ents8 or
(2) 2hen there has been a ."dicial separation or property "nder Article 151. (1*+3a)
Art. 1*51. The followin persons cannot ac0"ire by p"rchase& even at a p"blic or ."dicial a"ction&
either in person or thro"h the !ediation of another<
(1) The "ardian& the property of the person or persons who !ay be "nder his "ardianship8
(2) Aents& the property whose ad!inistration or sale !ay have been entr"sted to the!& "nless the
consent of the principal has been iven8
(') :)ec"tors and ad!inistrators& the property of the estate "nder ad!inistration8
(*) P"blic officers and e!ployees& the property of the @tate or of any s"bdivision thereof& or of any
overn!ent1owned or controlled corporation& or instit"tion& the ad!inistration of which has been
intr"sted to the!8 this provision shall apply to ."des and overn!ent e)perts who& in any !anner
whatsoever& take part in the sale8
(+) 4"stices& ."des& prosec"tin attorneys& clerks of s"perior and inferior co"rts& and other officers
and e!ployees connected with the ad!inistration of ."stice& the property and rihts in litiation or
levied "pon an e)ec"tion before the co"rt within whose ."risdiction or territory they e)ercise their
respective f"nctions8 this prohibition incl"des the act of ac0"irin by assin!ent and shall apply to
lawyers& with respect to the property and rihts which !ay be the ob.ect of any litiation in which
they !ay take part by virt"e of their profession.
(,) Any others specially dis0"alified by law. (1*+5a)
Art. 1*52. The prohibitions in the two precedin articles are applicable to sales in leal rede!ption&
co!pro!ises and ren"nciations. (n)

C9APT:- '
:AA:CT@ #A T9: C#6T-ACT
29:6 T9: T9(6$ @#LD 9A@ B::6 L#@T

Art. 1*5'. (f at the ti!e the contract of sale is perfected& the thin which is the ob.ect of the
contract has been entirely lost& the contract shall be witho"t any effect.
B"t if the thin sho"ld have been lost in part only& the vendee !ay choose between withdrawin
fro! the contract and de!andin the re!ainin part& payin its price in proportion to the total s"!
areed "pon. (1*,7a)
Art. 1*5*. 2here the parties p"rport a sale of specific oods& and the oods witho"t the knowlede
of the seller have perished in part or have wholly or in a !aterial part so deteriorated in 0"ality as
to be s"bstantially chaned in character& the b"yer !ay at his option treat the sale<
(1) As avoided8 or
(2) As valid in all of the e)istin oods or in so !"ch thereof as have not deteriorated& and as
bindin the b"yer to pay the areed price for the oods in which the ownership will pass& if the sale
was divisible. (n)
C9APT:- *
#BL($AT(#6@ #A T9: >:6D#-

@:CT(#6 1. 1 $eneral Provisions

Art. 1*5+. The vendor is bo"nd to transfer the ownership of and deliver& as well as warrant the
thin which is the ob.ect of the sale. (1*,1a)
Art. 1*5,. The ownership of the thin sold is ac0"ired by the vendee fro! the !o!ent it is
delivered to hi! in any of the ways specified in Articles 1*5/ to 1+71& or in any other !anner
sinifyin an aree!ent that the possession is transferred fro! the vendor to the vendee. (n)

@:CT(#6 2. 1 Delivery of the Thin @old

Art. 1*5/. The thin sold shall be "nderstood as delivered& when it is placed in the control and
possession of the vendee. (1*,2a)
Art. 1*53. 2hen the sale is !ade thro"h a p"blic instr"!ent& the e)ec"tion thereof shall be
e0"ivalent to the delivery of the thin which is the ob.ect of the contract& if fro! the deed the
contrary does not appear or cannot clearly be inferred.
2ith reard to !ovable property& its delivery !ay also be !ade by the delivery of the keys of the
place or depository where it is stored or kept. (1*,'a)
Art. 1*55. The delivery of !ovable property !ay likewise be !ade by the !ere consent or
aree!ent of the contractin parties& if the thin sold cannot be transferred to the possession of the
vendee at the ti!e of the sale& or if the latter already had it in his possession for any other reason.
(1*,'a)
Art. 1+77. There !ay also be tradition constit"t"! possessori"!. (n)
Art. 1+71. 2ith respect to incorporeal property& the provisions of the first pararaph of article 1*53
shall overn. (n any other case wherein said provisions are not applicable& the placin of the titles
of ownership in the possession of the vendee or the "se by the vendee of his rihts& with the
vendor;s consent& shall be "nderstood as a delivery. (1*,*)
Art. 1+72. 2hen oods are delivered to the b"yer "on sale or ret"rn" to ive the b"yer an option to
ret"rn the oods instead of payin the price& the ownership passes to the b"yer of delivery& b"t he
!ay revest the ownership in the seller by ret"rnin or tenderin the oods within the ti!e fi)ed in
the contract& or& if no ti!e has been fi)ed& within a reasonable ti!e. (n)
2hen oods are delivered to the b"yer on approval or on trial or on satisfaction& or other si!ilar
ter!s& the ownership therein passes to the b"yer<
(1) 2hen he sinifies his approval or acceptance to the seller or does any other act adoptin the
transaction8
(2) (f he does not sinify his approval or acceptance to the seller& b"t retains the oods witho"t
ivin notice of re.ection& then if a ti!e has been fi)ed for the ret"rn of the oods& on the
e)piration of s"ch ti!e& and& if no ti!e has been fi)ed& on the e)piration of a reasonable ti!e. 2hat
is a reasonable ti!e is a 0"estion of fact. (n)
Art. 1+7'. 2hen there is a contract of sale of specific oods& the seller !ay& by the ter!s of the
contract& reserve the riht of possession or ownership in the oods "ntil certain conditions have
been f"lfilled. The riht of possession or ownership !ay be th"s reserved notwithstandin the
delivery of the oods to the b"yer or to a carrier or other bailee for the p"rpose of trans!ission to
the b"yer.
2here oods are shipped& and by the bill of ladin the oods are deliverable to the seller or his
aent& or to the order of the seller or of his aent& the seller thereby reserves the ownership in the
oods. B"t& if e)cept for the for! of the bill of ladin& the ownership wo"ld have passed to the
b"yer on ship!ent of the oods& the seller;s property in the oods shall be dee!ed to be only for
the p"rpose of sec"rin perfor!ance by the b"yer of his obliations "nder the contract.
2here oods are shipped& and by the bill of ladin the oods are deliverable to order of the b"yer
or of his aent& b"t possession of the bill of ladin is retained by the seller or his aent& the seller
thereby reserves a riht to the possession of the oods as aainst the b"yer.
2here the seller of oods draws on the b"yer for the price and trans!its the bill of e)chane and
bill of ladin toether to the b"yer to sec"re acceptance or pay!ent of the bill of e)chane& the
b"yer is bo"nd to ret"rn the bill of ladin if he does not honor the bill of e)chane& and if he
wronf"lly retains the bill of ladin he ac0"ires no added riht thereby. (f& however& the bill of
ladin provides that the oods are deliverable to the b"yer or to the order of the b"yer& or is
indorsed in blank& or to the b"yer by the consinee na!ed therein& one who p"rchases in ood
faith& for val"e& the bill of ladin& or oods fro! the b"yer will obtain the ownership in the oods&
altho"h the bill of e)chane has not been honored& provided that s"ch p"rchaser has received
delivery of the bill of ladin indorsed by the consinee na!ed therein& or of the oods& witho"t
notice of the facts !akin the transfer wronf"l. (n)
Art. 1+7*. ?nless otherwise areed& the oods re!ain at the seller;s risk "ntil the ownership therein
is transferred to the b"yer& b"t when the ownership therein is transferred to the b"yer the oods are
at the b"yer;s risk whether act"al delivery has been !ade or not& e)cept that<
(1) 2here delivery of the oods has been !ade to the b"yer or to a bailee for the b"yer& in
p"rs"ance of the contract and the ownership in the oods has been retained by the seller !erely to
sec"re perfor!ance by the b"yer of his obliations "nder the contract& the oods are at the b"yer;s
risk fro! the ti!e of s"ch delivery8
(2) 2here act"al delivery has been delayed thro"h the fa"lt of either the b"yer or seller the oods
are at the risk of the party in fa"lt. (n)
Art. 1+7+. @"b.ect to the provisions of this Title& where oods are sold by a person who is not the
owner thereof& and who does not sell the! "nder a"thority or with the consent of the owner& the
b"yer ac0"ires no better title to the oods than the seller had& "nless the owner of the oods is by
his cond"ct precl"ded fro! denyin the seller;s a"thority to sell.
6othin in this Title& however& shall affect<
(1) The provisions of any factors; act& recordin laws& or any other provision of law enablin the
apparent owner of oods to dispose of the! as if he were the tr"e owner thereof8
(2) The validity of any contract of sale "nder stat"tory power of sale or "nder the order of a co"rt
of co!petent ."risdiction8
(') P"rchases !ade in a !erchant;s store& or in fairs& or !arkets& in accordance with the Code of
Co!!erce and special laws. (n)
Art. 1+7,. 2here the seller of oods has a voidable title thereto& b"t his title has not been avoided
at the ti!e of the sale& the b"yer ac0"ires a ood title to the oods& provided he b"ys the! in ood
faith& for val"e& and witho"t notice of the seller;s defect of title. (n)
Art. 1+7/. A doc"!ent of title in which it is stated that the oods referred to therein will be
delivered to the bearer& or to the order of any person na!ed in s"ch doc"!ent is a neotiable
doc"!ent of title. (n)
Art. 1+73. A neotiable doc"!ent of title !ay be neotiated by delivery<
(1) 2here by the ter!s of the doc"!ent the carrier& wareho"se!an or other bailee iss"in the sa!e
"ndertakes to deliver the oods to the bearer8 or
(2) 2here by the ter!s of the doc"!ent the carrier& wareho"se!an or other bailee iss"in the sa!e
"ndertakes to deliver the oods to the order of a specified person& and s"ch person or a s"bse0"ent
endorsee of the doc"!ent has indorsed it in blank or to the bearer.
2here by the ter!s of a neotiable doc"!ent of title the oods are deliverable to bearer or where a
neotiable doc"!ent of title has been indorsed in blank or to bearer& any holder !ay indorse the
sa!e to hi!self or to any specified person& and in s"ch case the doc"!ent shall thereafter be
neotiated only by the endorse!ent of s"ch endorsee. (n)
Art. 1+75. A neotiable doc"!ent of title !ay be neotiated by the endorse!ent of the person to
whose order the oods are by the ter!s of the doc"!ent deliverable. @"ch endorse!ent !ay be in
blank& to bearer or to a specified person. (f indorsed to a specified person& it !ay be aain
neotiated by the endorse!ent of s"ch person in blank& to bearer or to another specified person.
@"bse0"ent neotiations !ay be !ade in like !anner. (n)
Art. 1+17. (f a doc"!ent of title which contains an "ndertakin by a carrier& wareho"se!an or
other bailee to deliver the oods to bearer& to a specified person or order of a specified person or
which contains words of like i!port& has placed "pon it the words "not neotiable&" "non1
neotiable" or the like& s"ch doc"!ent !ay nevertheless be neotiated by the holder and is a
neotiable doc"!ent of title within the !eanin of this Title. B"t nothin in this Title contained
shall be constr"ed as li!itin or definin the effect "pon the obliations of the carrier&
wareho"se!an& or other bailee iss"in a doc"!ent of title or placin thereon the words "not
neotiable&" "non1neotiable&" or the like. (n)
Art. 1+11. A doc"!ent of title which is not in s"ch for! that it can be neotiated by delivery !ay
be transferred by the holder by delivery to a p"rchaser or donee. A non1neotiable doc"!ent cannot
be neotiated and the endorse!ent of s"ch a doc"!ent ives the transferee no additional riht. (n)
Art. 1+12. A neotiable doc"!ent of title !ay be neotiated<
(1) By the owner therefor8 or
(2) By any person to who! the possession or c"stody of the doc"!ent has been entr"sted by the
owner& if& by the ter!s of the doc"!ent the bailee iss"in the doc"!ent "ndertakes to deliver the
oods to the order of the person to who! the possession or c"stody of the doc"!ent has been
entr"sted& or if at the ti!e of s"ch entr"stin the doc"!ent is in s"ch for! that it !ay be neotiated
by delivery. (n)
Art. 1+1'. A person to who! a neotiable doc"!ent of title has been d"ly neotiated ac0"ires
thereby<
(1) @"ch title to the oods as the person neotiatin the doc"!ent to hi! had or had ability to
convey to a p"rchaser in ood faith for val"e and also s"ch title to the oods as the person to whose
order the oods were to be delivered by the ter!s of the doc"!ent had or had ability to convey to a
p"rchaser in ood faith for val"e8 and
(2) The direct obliation of the bailee iss"in the doc"!ent to hold possession of the oods for hi!
accordin to the ter!s of the doc"!ent as f"lly as if s"ch bailee had contracted directly with hi!.
(n)
Art. 1+1*. A person to who! a doc"!ent of title has been transferred& b"t not neotiated& ac0"ires
thereby& as aainst the transferor& the title to the oods& s"b.ect to the ter!s of any aree!ent with
the transferor.
(f the doc"!ent is non1neotiable& s"ch person also ac0"ires the riht to notify the bailee who
iss"ed the doc"!ent of the transfer thereof& and thereby to ac0"ire the direct obliation of s"ch
bailee to hold possession of the oods for hi! accordin to the ter!s of the doc"!ent.
Prior to the notification to s"ch bailee by the transferor or transferee of a non1neotiable doc"!ent
of title& the title of the transferee to the oods and the riht to ac0"ire the obliation of s"ch bailee
!ay be defeated by the levy of an attach!ent of e)ec"tion "pon the oods by a creditor of the
transferor& or by a notification to s"ch bailee by the transferor or a s"bse0"ent p"rchaser fro! the
transfer of a s"bse0"ent sale of the oods by the transferor. (n)
Art. 1+1+. 2here a neotiable doc"!ent of title is transferred for val"e by delivery& and the
endorse!ent of the transferor is essential for neotiation& the transferee ac0"ires a riht aainst the
transferor to co!pel hi! to endorse the doc"!ent "nless a contrary intention appears. The
neotiation shall take effect as of the ti!e when the endorse!ent is act"ally !ade. (n)
Art. 1+1,. A person who for val"e neotiates or transfers a doc"!ent of title by endorse!ent or
delivery& incl"din one who assins for val"e a clai! sec"red by a doc"!ent of title "nless a
contrary intention appears& warrants<
(1) That the doc"!ent is en"ine8
(2) That he has a leal riht to neotiate or transfer it8
(') That he has knowlede of no fact which wo"ld i!pair the validity or worth of the doc"!ent8
and
(*) That he has a riht to transfer the title to the oods and that the oods are !erchantable or fit for
a partic"lar p"rpose& whenever s"ch warranties wo"ld have been i!plied if the contract of the
parties had been to transfer witho"t a doc"!ent of title the oods represented thereby. (n)
Art. 1+1/. The endorse!ent of a doc"!ent of title shall not !ake the endorser liable for any fail"re
on the part of the bailee who iss"ed the doc"!ent or previo"s endorsers thereof to f"lfill their
respective obliations. (n)
Art. 1+13. The validity of the neotiation of a neotiable doc"!ent of title is not i!paired by the
fact that the neotiation was a breach of d"ty on the part of the person !akin the neotiation& or
by the fact that the owner of the doc"!ent was deprived of the possession of the sa!e by loss&
theft& fra"d& accident& !istake& d"ress& or conversion& if the person to who! the doc"!ent was
neotiated or a person to who! the doc"!ent was s"bse0"ently neotiated paid val"e therefor in
ood faith witho"t notice of the breach of d"ty& or loss& theft& fra"d& accident& !istake& d"ress or
conversion. (n)
Art. 1+15. (f oods are delivered to a bailee by the owner or by a person whose act in conveyin
the title to the! to a p"rchaser in ood faith for val"e wo"ld bind the owner and a neotiable
doc"!ent of title is iss"ed for the! they cannot thereafter& while in possession of s"ch bailee& be
attached by arnish!ent or otherwise or be levied "nder an e)ec"tion "nless the doc"!ent be first
s"rrendered to the bailee or its neotiation en.oined. The bailee shall in no case be co!pelled to
deliver "p the act"al possession of the oods "ntil the doc"!ent is s"rrendered to hi! or
i!po"nded by the co"rt. (n)
Art. 1+27. A creditor whose debtor is the owner of a neotiable doc"!ent of title shall be entitled
to s"ch aid fro! co"rts of appropriate ."risdiction by in."nction and otherwise in attachin s"ch
doc"!ent or in satisfyin the clai! by !eans thereof as is allowed at law or in e0"ity in reard to
property which cannot readily be attached or levied "pon by ordinary leal process. (n)
Art. 1+21. 2hether it is for the b"yer to take possession of the oods or of the seller to send the!
to the b"yer is a 0"estion dependin in each case on the contract& e)press or i!plied& between the
parties. Apart fro! any s"ch contract& e)press or i!plied& or "sae of trade to the contrary& the
place of delivery is the seller;s place of b"siness if he has one& and if not his residence8 b"t in case
of a contract of sale of specific oods& which to the knowlede of the parties when the contract or
the sale was !ade were in so!e other place& then that place is the place of delivery.
2here by a contract of sale the seller is bo"nd to send the oods to the b"yer& b"t no ti!e for
sendin the! is fi)ed& the seller is bo"nd to send the! within a reasonable ti!e.
2here the oods at the ti!e of sale are in the possession of a third person& the seller has not
f"lfilled his obliation to deliver to the b"yer "nless and "ntil s"ch third person acknowledes to
the b"yer that he holds the oods on the b"yer;s behalf.
De!and or tender of delivery !ay be treated as ineffect"al "nless !ade at a reasonable ho"r. 2hat
is a reasonable ho"r is a 0"estion of fact.
?nless otherwise areed& the e)penses of and incidental to p"ttin the oods into a deliverable state
!"st be borne by the seller. (n)
Art. 1+22. 2here the seller delivers to the b"yer a 0"antity of oods less than he contracted to sell&
the b"yer !ay re.ect the!& b"t if the b"yer accepts or retains the oods so delivered& knowin that
the seller is not oin to perfor! the contract in f"ll& he !"st pay for the! at the contract rate. (f&
however& the b"yer has "sed or disposed of the oods delivered before he knows that the seller is
not oin to perfor! his contract in f"ll& the b"yer shall not be liable for !ore than the fair val"e to
hi! of the oods so received.
2here the seller delivers to the b"yer a 0"antity of oods larer than he contracted to sell& the
b"yer !ay accept the oods incl"ded in the contract and re.ect the rest. (f the b"yer accepts the
whole of the oods so delivered he !"st pay for the! at the contract rate.
2here the seller delivers to the b"yer the oods he contracted to sell !i)ed with oods of a
different description not incl"ded in the contract& the b"yer !ay accept the oods which are in
accordance with the contract and re.ect the rest.
(n the precedin two pararaphs& if the s"b.ect !atter is indivisible& the b"yer !ay re.ect the whole
of the oods.
The provisions of this article are s"b.ect to any "sae of trade& special aree!ent& or co"rse of
dealin between the parties. (n)
Art. 1+2'. 2here& in p"rs"ance of a contract of sale& the seller is a"thori%ed or re0"ired to send the
oods to the b"yer& delivery of the oods to a carrier& whether na!ed by the b"yer or not& for the
p"rpose of trans!ission to the b"yer is dee!ed to be a delivery of the oods to the b"yer& e)cept in
the case provided for in Article 1+7'& first& second and third pararaphs& or "nless a contrary intent
appears.
?nless otherwise a"thori%ed by the b"yer& the seller !"st !ake s"ch contract with the carrier on
behalf of the b"yer as !ay be reasonable& havin reard to the nat"re of the oods and the other
circ"!stances of the case. (f the seller o!it so to do& and the oods are lost or da!aed in co"rse of
transit& the b"yer !ay decline to treat the delivery to the carrier as a delivery to hi!self& or !ay
hold the seller responsible in da!aes.
?nless otherwise areed& where oods are sent by the seller to the b"yer "nder circ"!stances in
which the seller knows or o"ht to know that it is "s"al to ins"re& the seller !"st ive s"ch notice
to the b"yer as !ay enable hi! to ins"re the! d"rin their transit& and& if the seller fails to do so&
the oods shall be dee!ed to be at his risk d"rin s"ch transit. (n)
Art. 1+2*. The vendor shall not be bo"nd to deliver the thin sold& if the vendee has not paid hi!
the price& or if no period for the pay!ent has been fi)ed in the contract. (1*,,)
Art. 1+2+. The seller of oods is dee!ed to be an "npaid seller within the !eanin of this Title<
(1) 2hen the whole of the price has not been paid or tendered8
(2) 2hen a bill of e)chane or other neotiable instr"!ent has been received as conditional
pay!ent& and the condition on which it was received has been broken by reason of the dishonor of
the instr"!ent& the insolvency of the b"yer& or otherwise.
(n Articles 1+2+ to 1+'+ the ter! "seller" incl"des an aent of the seller to who! the bill of ladin
has been indorsed& or a consinor or aent who has hi!self paid& or is directly responsible for the
price& or any other person who is in the position of a seller. (n)
Art. 1+2,. @"b.ect to the provisions of this Title& notwithstandin that the ownership in the oods
!ay have passed to the b"yer& the "npaid seller of oods& as s"ch& has<
(1) A lien on the oods or riht to retain the! for the price while he is in possession of the!8
(2) (n case of the insolvency of the b"yer& a riht of stoppin the oods in transit" after he has
parted with the possession of the!8
(') A riht of resale as li!ited by this Title8
(*) A riht to rescind the sale as likewise li!ited by this Title.
2here the ownership in the oods has not passed to the b"yer& the "npaid seller has& in addition to
his other re!edies a riht of withholdin delivery si!ilar to and coe)tensive with his rihts of lien
and stoppae in transit" where the ownership has passed to the b"yer. (n)
Art. 1+2/. @"b.ect to the provisions of this Title& the "npaid seller of oods who is in possession of
the! is entitled to retain possession of the! "ntil pay!ent or tender of the price in the followin
cases& na!ely<
(1) 2here the oods have been sold witho"t any stip"lation as to credit8
(2) 2here the oods have been sold on credit& b"t the ter! of credit has e)pired8
(') 2here the b"yer beco!es insolvent.
The seller !ay e)ercise his riht of lien notwithstandin that he is in possession of the oods as
aent or bailee for the b"yer. (n)
Art. 1+23. 2here an "npaid seller has !ade part delivery of the oods& he !ay e)ercise his riht of
lien on the re!ainder& "nless s"ch part delivery has been !ade "nder s"ch circ"!stances as to
show an intent to waive the lien or riht of retention. (n)
Art. 1+25. The "npaid seller of oods loses his lien thereon<
(1) 2hen he delivers the oods to a carrier or other bailee for the p"rpose of trans!ission to the
b"yer witho"t reservin the ownership in the oods or the riht to the possession thereof8
(2) 2hen the b"yer or his aent lawf"lly obtains possession of the oods8
(') By waiver thereof.
The "npaid seller of oods& havin a lien thereon& does not lose his lien by reason only that he has
obtained ."d!ent or decree for the price of the oods. (n)
Art. 1+'7. @"b.ect to the provisions of this Title& when the b"yer of oods is or beco!es insolvent&
the "npaid seller who has parted with the possession of the oods has the riht of stoppin the! in
transit"& that is to say& he !ay res"!e possession of the oods at any ti!e while they are in transit&
and he will then beco!e entitled to the sa!e rihts in reard to the oods as he wo"ld have had if
he had never parted with the possession. (n)
Art. 1+'1. $oods are in transit within the !eanin of the precedin article<
(1) Aro! the ti!e when they are delivered to a carrier by land& water& or air& or other bailee for the
p"rpose of trans!ission to the b"yer& "ntil the b"yer& or his aent in that behalf& takes delivery of
the! fro! s"ch carrier or other bailee8
(2) (f the oods are re.ected by the b"yer& and the carrier or other bailee contin"es in possession of
the!& even if the seller has ref"sed to receive the! back.
$oods are no loner in transit within the !eanin of the precedin article<
(1) (f the b"yer& or his aent in that behalf& obtains delivery of the oods before their arrival at the
appointed destination8
(2) (f& after the arrival of the oods at the appointed destination& the carrier or other bailee
acknowledes to the b"yer or his aent that he holds the oods on his behalf and contin"es in
possession of the! as bailee for the b"yer or his aent8 and it is i!!aterial that f"rther destination
for the oods !ay have been indicated by the b"yer8
(') (f the carrier or other bailee wronf"lly ref"ses to deliver the oods to the b"yer or his aent in
that behalf.
(f the oods are delivered to a ship& freiht train& tr"ck& or airplane chartered by the b"yer& it is a
0"estion dependin on the circ"!stances of the partic"lar case& whether they are in the possession
of the carrier as s"ch or as aent of the b"yer.
(f part delivery of the oods has been !ade to the b"yer& or his aent in that behalf& the re!ainder
of the oods !ay be stopped in transit"& "nless s"ch part delivery has been "nder s"ch
circ"!stances as to show an aree!ent with the b"yer to ive "p possession of the whole of the
oods. (n)
Art. 1+'2. The "npaid seller !ay e)ercise his riht of stoppae in transit" either by obtainin
act"al possession of the oods or by ivin notice of his clai! to the carrier or other bailee in
whose possession the oods are. @"ch notice !ay be iven either to the person in act"al possession
of the oods or to his principal. (n the latter case the notice& to be effect"al& !"st be iven at s"ch
ti!e and "nder s"ch circ"!stances that the principal& by the e)ercise of reasonable dilience& !ay
prevent a delivery to the b"yer.
2hen notice of stoppae in transit" is iven by the seller to the carrier& or other bailee in
possession of the oods& he !"st redeliver the oods to& or accordin to the directions of& the seller.
The e)penses of s"ch delivery !"st be borne by the seller. (f& however& a neotiable doc"!ent of
title representin the oods has been iss"ed by the carrier or other bailee& he shall not oblied to
deliver or ."stified in deliverin the oods to the seller "nless s"ch doc"!ent is first s"rrendered
for cancellation. (n)
Art. 1+''. 2here the oods are of perishable nat"re& or where the seller e)pressly reserves the riht
of resale in case the b"yer sho"ld !ake defa"lt& or where the b"yer has been in defa"lt in the
pay!ent of the price for an "nreasonable ti!e& an "npaid seller havin a riht of lien or havin
stopped the oods in transit" !ay resell the oods. 9e shall not thereafter be liable to the oriinal
b"yer "pon the contract of sale or for any profit !ade by s"ch resale& b"t !ay recover fro! the
b"yer da!aes for any loss occasioned by the breach of the contract of sale.
2here a resale is !ade& as a"thori%ed in this article& the b"yer ac0"ires a ood title as aainst the
oriinal b"yer.
(t is not essential to the validity of resale that notice of an intention to resell the oods be iven by
the seller to the oriinal b"yer. B"t where the riht to resell is not based on the perishable nat"re of
the oods or "pon an e)press provision of the contract of sale& the ivin or fail"re to ive s"ch
notice shall be relevant in any iss"e involvin the 0"estion whether the b"yer had been in defa"lt
for an "nreasonable ti!e before the resale was !ade.
(t is not essential to the validity of a resale that notice of the ti!e and place of s"ch resale sho"ld be
iven by the seller to the oriinal b"yer.
The seller is bo"nd to e)ercise reasonable care and ."d!ent in !akin a resale& and s"b.ect to this
re0"ire!ent !ay !ake a resale either by p"blic or private sale. 9e cannot& however& directly or
indirectly b"y the oods. (n)
Art. 1+'*. An "npaid seller havin the riht of lien or havin stopped the oods in transit"& !ay
rescind the transfer of title and res"!e the ownership in the oods& where he e)pressly reserved the
riht to do so in case the b"yer sho"ld !ake defa"lt& or where the b"yer has been in defa"lt in the
pay!ent of the price for an "nreasonable ti!e. The seller shall not thereafter be liable to the b"yer
"pon the contract of sale& b"t !ay recover fro! the b"yer da!aes for any loss occasioned by the
breach of the contract.
The transfer of title shall not be held to have been rescinded by an "npaid seller "ntil he has
!anifested by notice to the b"yer or by so!e other overt act an intention to rescind. (t is not
necessary that s"ch overt act sho"ld be co!!"nicated to the b"yer& b"t the ivin or fail"re to ive
notice to the b"yer of the intention to rescind shall be relevant in any iss"e involvin the 0"estion
whether the b"yer had been in defa"lt for an "nreasonable ti!e before the riht of rescission was
asserted. (n)
Art. 1+'+. @"b.ect to the provisions of this Title& the "npaid seller;s riht of lien or stoppae in
transit" is not affected by any sale& or other disposition of the oods which the b"yer !ay have
!ade& "nless the seller has assented thereto.
(f& however& a neotiable doc"!ent of title has been iss"ed for oods& no seller;s lien or riht of
stoppae in transit" shall defeat the riht of any p"rchaser for val"e in ood faith to who! s"ch
doc"!ent has been neotiated& whether s"ch neotiation be prior or s"bse0"ent to the notification
to the carrier& or other bailee who iss"ed s"ch doc"!ent& of the seller;s clai! to a lien or riht of
stoppae in transit". (n)
Art. 1+',. The vendor is not bo"nd to deliver the thin sold in case the vendee sho"ld lose the riht
to !ake "se of the ter!s as provided in Article 1153. (1*,/a)
Art. 1+'/. The vendor is bo"nd to deliver the thin sold and its accessions and accessories in the
condition in which they were "pon the perfection of the contract.
All the fr"its shall pertain to the vendee fro! the day on which the contract was perfected. (1*,3a)
Art. 1+'3. (n case of loss& deterioration or i!prove!ent of the thin before its delivery& the r"les in
Article 1135 shall be observed& the vendor bein considered the debtor. (n)
Art. 1+'5. The obliation to deliver the thin sold incl"des that of placin in the control of the
vendee all that is !entioned in the contract& in confor!ity with the followin r"les<
(f the sale of real estate sho"ld be !ade with a state!ent of its area& at the rate of a certain price for
a "nit of !eas"re or n"!ber& the vendor shall be oblied to deliver to the vendee& if the latter
sho"ld de!and it& all that !ay have been stated in the contract8 b"t& sho"ld this be not possible& the
vendee !ay choose between a proportional red"ction of the price and the rescission of the contract&
provided that& in the latter case& the lack in the area be not less than one1tenth of that stated.
The sa!e shall be done& even when the area is the sa!e& if any part of the i!!ovable is not of the
0"ality specified in the contract.
The rescission& in this case& shall only take place at the will of the vendee& when the inferior val"e
of the thin sold e)ceeds one1tenth of the price areed "pon.
6evertheless& if the vendee wo"ld not have bo"ht the i!!ovable had he known of its s!aller area
of inferior 0"ality& he !ay rescind the sale. (1*,5a)
Art. 1+*7. (f& in the case of the precedin article& there is a reater area or n"!ber in the
i!!ovable than that stated in the contract& the vendee !ay accept the area incl"ded in the contract
and re.ect the rest. (f he accepts the whole area& he !"st pay for the sa!e at the contract rate.
(1*/7a)
Art. 1+*1. The provisions of the two precedin articles shall apply to ."dicial sales. (n)
Art. 1+*2. (n the sale of real estate& !ade for a l"!p s"! and not at the rate of a certain s"! for a
"nit of !eas"re or n"!ber& there shall be no increase or decrease of the price& altho"h there be a
reater or less area or n"!ber than that stated in the contract.
The sa!e r"le shall be applied when two or !ore i!!ovables as sold for a sinle price8 b"t if&
besides !entionin the bo"ndaries& which is indispensable in every conveyance of real estate& its
area or n"!ber sho"ld be desinated in the contract& the vendor shall be bo"nd to deliver all that is
incl"ded within said bo"ndaries& even when it e)ceeds the area or n"!ber specified in the contract8
and& sho"ld he not be able to do so& he shall s"ffer a red"ction in the price& in proportion to what is
lackin in the area or n"!ber& "nless the contract is rescinded beca"se the vendee does not accede
to the fail"re to deliver what has been stip"lated. (1*/1)
Art. 1+*'. The actions arisin fro! Articles 1+'5 and 1+*2 shall prescribe in si) !onths& co"nted
fro! the day of delivery. (1*/2a)
Art. 1+**. (f the sa!e thin sho"ld have been sold to different vendees& the ownership shall be
transferred to the person who !ay have first taken possession thereof in ood faith& if it sho"ld be
!ovable property.
@ho"ld it be i!!ovable property& the ownership shall belon to the person ac0"irin it who in
ood faith first recorded it in the -eistry of Property.
@ho"ld there be no inscription& the ownership shall pertain to the person who in ood faith was first
in the possession8 and& in the absence thereof& to the person who presents the oldest title& provided
there is ood faith. (1*/')

@:CT(#6 '. 1 Conditions and 2arranties

Art. 1+*+. 2here the obliation of either party to a contract of sale is s"b.ect to any condition
which is not perfor!ed& s"ch party !ay ref"se to proceed with the contract or he !ay waive
perfor!ance of the condition. (f the other party has pro!ised that the condition sho"ld happen or
be perfor!ed& s"ch first !entioned party !ay also treat the nonperfor!ance of the condition as a
breach of warranty.
2here the ownership in the thin has not passed& the b"yer !ay treat the f"lfill!ent by the seller of
his obliation to deliver the sa!e as described and as warranted e)pressly or by i!plication in the
contract of sale as a condition of the obliation of the b"yer to perfor! his pro!ise to accept and
pay for the thin. (n)
Art. 1+*,. Any affir!ation of fact or any pro!ise by the seller relatin to the thin is an e)press
warranty if the nat"ral tendency of s"ch affir!ation or pro!ise is to ind"ce the b"yer to p"rchase
the sa!e& and if the b"yer p"rchase the thin relyin thereon. 6o affir!ation of the val"e of the
thin& nor any state!ent p"rportin to be a state!ent of the seller;s opinion only& shall be constr"ed
as a warranty& "nless the seller !ade s"ch affir!ation or state!ent as an e)pert and it was relied
"pon by the b"yer. (n)
Art. 1+*/. (n a contract of sale& "nless a contrary intention appears& there is<
(1) An i!plied warranty on the part of the seller that he has a riht to sell the thin at the ti!e when
the ownership is to pass& and that the b"yer shall fro! that ti!e have and en.oy the leal and
peacef"l possession of the thin8
(2) An i!plied warranty that the thin shall be free fro! any hidden fa"lts or defects& or any chare
or enc"!brance not declared or known to the b"yer.
This Article shall not& however& be held to render liable a sheriff& a"ctioneer& !ortaee& pledee& or
other person professin to sell by virt"e of a"thority in fact or law& for the sale of a thin in which a
third person has a leal or e0"itable interest. (n)

@?B@:CT(#6 1. 1 2arranty in Case of :viction

Art. 1+*3. :viction shall take place whenever by a final ."d!ent based on a riht prior to the sale
or an act i!p"table to the vendor& the vendee is deprived of the whole or of a part of the thin
p"rchased.
The vendor shall answer for the eviction even tho"h nothin has been said in the contract on the
s"b.ect.
The contractin parties& however& !ay increase& di!inish& or s"ppress this leal obliation of the
vendor. (1*/+a)
Art. 1+*5. The vendee need not appeal fro! the decision in order that the vendor !ay beco!e
liable for eviction. (n)
Art. 1++7. 2hen adverse possession had been co!!enced before the sale b"t the prescriptive
period is co!pleted after the transfer& the vendor shall not be liable for eviction. (n)
Art. 1++1. (f the property is sold for nonpay!ent of ta)es d"e and not !ade known to the vendee
before the sale& the vendor is liable for eviction. (n)
Art. 1++2. The ."d!ent debtor is also responsible for eviction in ."dicial sales& "nless it is
otherwise decreed in the ."d!ent. (n)
Art. 1++'. Any stip"lation e)e!ptin the vendor fro! the obliation to answer for eviction shall be
void& if he acted in bad faith. (1*/,)
Art. 1++*. (f the vendee has reno"nced the riht to warranty in case of eviction& and eviction sho"ld
take place& the vendor shall only pay the val"e which the thin sold had at the ti!e of the eviction.
@ho"ld the vendee have !ade the waiver with knowlede of the risks of eviction and ass"!ed its
conse0"ences& the vendor shall not be liable. (1*//)
Art. 1+++. 2hen the warranty has been areed "pon or nothin has been stip"lated on this point& in
case eviction occ"rs& the vendee shall have the riht to de!and of the vendor<
(1) The ret"rn of the val"e which the thin sold had at the ti!e of the eviction& be it reater or less
than the price of the sale8
(2) The inco!e or fr"its& if he has been ordered to deliver the! to the party who won the s"it
aainst hi!8
(') The costs of the s"it which ca"sed the eviction& and& in a proper case& those of the s"it bro"ht
aainst the vendor for the warranty8
(*) The e)penses of the contract& if the vendee has paid the!8
(+) The da!aes and interests& and orna!ental e)penses& if the sale was !ade in bad faith. (1*/3)
Art. 1++,. @ho"ld the vendee lose& by reason of the eviction& a part of the thin sold of s"ch
i!portance& in relation to the whole& that he wo"ld not have bo"ht it witho"t said part& he !ay
de!and the rescission of the contract8 b"t with the obliation to ret"rn the thin witho"t other
enc"!brances that those which it had when he ac0"ired it.
9e !ay e)ercise this riht of action& instead of enforcin the vendor;s liability for eviction.
The sa!e r"le shall be observed when two or !ore thins have been .ointly sold for a l"!p s"!& or
for a separate price for each of the!& if it sho"ld clearly appear that the vendee wo"ld not have
p"rchased one witho"t the other. (1*/5a)
Art. 1++/. The warranty cannot be enforced "ntil a final ."d!ent has been rendered& whereby the
vendee loses the thin ac0"ired or a part thereof. (1*37)
Art. 1++3. The vendor shall not be oblied to !ake ood the proper warranty& "nless he is
s"!!oned in the s"it for eviction at the instance of the vendee. (1*31a)
Art. 1++5. The defendant vendee shall ask& within the ti!e fi)ed in the -"les of Co"rt for
answerin the co!plaint& that the vendor be !ade a co1defendant. (1*32a)
Art. 1+,7. (f the i!!ovable sold sho"ld be enc"!bered with any non1apparent b"rden or
servit"de& not !entioned in the aree!ent& of s"ch a nat"re that it !"st be pres"!ed that the
vendee wo"ld not have ac0"ired it had he been aware thereof& he !ay ask for the rescission of the
contract& "nless he sho"ld prefer the appropriate inde!nity. 6either riht can be e)ercised if the
non1apparent b"rden or servit"de is recorded in the -eistry of Property& "nless there is an e)press
warranty that the thin is free fro! all b"rdens and enc"!brances.
2ithin one year& to be co!p"ted fro! the e)ec"tion of the deed& the vendee !ay brin the action
for rescission& or s"e for da!aes.
#ne year havin elapsed& he !ay only brin an action for da!aes within an e0"al period& to be
co"nted fro! the date on which he discovered the b"rden or servit"de. (1*3'a)

@?B@:CT(#6 2. 1 2arranty Aainst 9idden Defects of or :nc"!brances ?pon the Thin @old

Art. 1+,1. The vendor shall be responsible for warranty aainst the hidden defects which the thin
sold !ay have& sho"ld they render it "nfit for the "se for which it is intended& or sho"ld they
di!inish its fitness for s"ch "se to s"ch an e)tent that& had the vendee been aware thereof& he
wo"ld not have ac0"ired it or wo"ld have iven a lower price for it8 b"t said vendor shall not be
answerable for patent defects or those which !ay be visible& or for those which are not visible if
the vendee is an e)pert who& by reason of his trade or profession& sho"ld have known the!. (1*3*a)
Art. 1+,2. (n a sale of oods& there is an i!plied warranty or condition as to the 0"ality or fitness of
the oods& as follows<
(1) 2here the b"yer& e)pressly or by i!plication& !akes known to the seller the partic"lar p"rpose
for which the oods are ac0"ired& and it appears that the b"yer relies on the seller;s skill or
."d!ent (whether he be the rower or !an"fact"rer or not)& there is an i!plied warranty that the
oods shall be reasonably fit for s"ch p"rpose8
(2) 2here the oods are bro"ht by description fro! a seller who deals in oods of that description
(whether he be the rower or !an"fact"rer or not)& there is an i!plied warranty that the oods shall
be of !erchantable 0"ality. (n)
Art. 1+,'. (n the case of contract of sale of a specified article "nder its patent or other trade na!e&
there is no warranty as to its fitness for any partic"lar p"rpose& "nless there is a stip"lation to the
contrary. (n)
Art. 1+,*. An i!plied warranty or condition as to the 0"ality or fitness for a partic"lar p"rpose !ay
be anne)ed by the "sae of trade. (n)
Art. 1+,+. (n the case of a contract of sale by sa!ple& if the seller is a dealer in oods of that kind&
there is an i!plied warranty that the oods shall be free fro! any defect renderin the!
"n!erchantable which wo"ld not be apparent on reasonable e)a!ination of the sa!ple. (n)
Art. 1+,,. The vendor is responsible to the vendee for any hidden fa"lts or defects in the thin
sold& even tho"h he was not aware thereof.
This provision shall not apply if the contrary has been stip"lated& and the vendor was not aware of
the hidden fa"lts or defects in the thin sold. (1*3+)
Art. 1+,/. (n the cases of Articles 1+,1& 1+,2& 1+,*& 1+,+ and 1+,,& the vendee !ay elect between
withdrawin fro! the contract and de!andin a proportionate red"ction of the price& with da!aes
in either case. (1*3,a)
Art. 1+,3. (f the thin sold sho"ld be lost in conse0"ence of the hidden fa"lts& and the vendor was
aware of the!& he shall bear the loss& and shall be oblied to ret"rn the price and ref"nd the
e)penses of the contract& with da!aes. (f he was not aware of the!& he shall only ret"rn the price
and interest thereon& and rei!b"rse the e)penses of the contract which the vendee !iht have paid.
(1*3/a)
Art. 1+,5. (f the thin sold had any hidden fa"lt at the ti!e of the sale& and sho"ld thereafter be lost
by a fort"ito"s event or thro"h the fa"lt of the vendee& the latter !ay de!and of the vendor the
price which he paid& less the val"e which the thin had when it was lost.
(f the vendor acted in bad faith& he shall pay da!aes to the vendee. (1*33a)
Art. 1+/7. The precedin articles of this @"bsection shall be applicable to ."dicial sales& e)cept that
the ."d!ent debtor shall not be liable for da!aes. (1*35a)
Art. 1+/1. Actions arisin fro! the provisions of the precedin ten articles shall be barred after si)
!onths& fro! the delivery of the thin sold. (1*57)
Art. 1+/2. (f two or !ore ani!als are sold toether& whether for a l"!p s"! or for a separate price
for each of the!& the redhibitory defect of one shall only ive rise to its redhibition& and not that of
the others8 "nless it sho"ld appear that the vendee wo"ld not have p"rchased the so"nd ani!al or
ani!als witho"t the defective one.
The latter case shall be pres"!ed when a tea!& yoke pair& or set is bo"ht& even if a separate price
has been fi)ed for each one of the ani!als co!posin the sa!e. (1*51)
Art. 1+/'. The provisions of the precedin article with respect to the sale of ani!als shall in like
!anner be applicable to the sale of other thins. (1*52)
Art. 1+/*. There is no warranty aainst hidden defects of ani!als sold at fairs or at p"blic a"ctions&
or of live stock sold as conde!ned. (1*5'a)
Art. 1+/+. The sale of ani!als s"fferin fro! contaio"s diseases shall be void.
A contract of sale of ani!als shall also be void if the "se or service for which they are ac0"ired has
been stated in the contract& and they are fo"nd to be "nfit therefor. (1*5*a)
Art. 1+/,. (f the hidden defect of ani!als& even in case a professional inspection has been !ade&
sho"ld be of s"ch a nat"re that e)pert knowlede is not s"fficient to discover it& the defect shall be
considered as redhibitory.
B"t if the veterinarian& thro"h inorance or bad faith sho"ld fail to discover or disclose it& he shall
be liable for da!aes. (1*5+)
Art. 1+//. The redhibitory action& based on the fa"lts or defects of ani!als& !"st be bro"ht within
forty days fro! the date of their delivery to the vendee.
This action can only be e)ercised with respect to fa"lts and defects which are deter!ined by law or
by local c"sto!s. (1*5,a)
Art. 1+/3. (f the ani!al sho"ld die within three days after its p"rchase& the vendor shall be liable if
the disease which ca"se the death e)isted at the ti!e of the contract. (1*5/a)
Art. 1+/5. (f the sale be rescinded& the ani!al shall be ret"rned in the condition in which it was
sold and delivered& the vendee bein answerable for any in."ry d"e to his nelience& and not
arisin fro! the redhibitory fa"lt or defect. (1*53)
Art. 1+37. (n the sale of ani!als with redhibitory defects& the vendee shall also en.oy the riht
!entioned in article 1+,/8 b"t he !"st !ake "se thereof within the sa!e period which has been
fi)ed for the e)ercise of the redhibitory action. (1*55)
Art. 1+31. The for! of sale of lare cattle shall be overned by special laws. (n)

C9APT:- +
#BL($AT(#6@ #A T9: >:6D::

Art. 1+32. The vendee is bo"nd to accept delivery and to pay the price of the thin sold at the ti!e
and place stip"lated in the contract.
(f the ti!e and place sho"ld not have been stip"lated& the pay!ent !"st be !ade at the ti!e and
place of the delivery of the thin sold. (1+77a)
Art. 1+3'. ?nless otherwise areed& the b"yer of oods is not bo"nd to accept delivery thereof by
install!ents.
2here there is a contract of sale of oods to be delivered by stated install!ents& which are to be
separately paid for& and the seller !akes defective deliveries in respect of one or !ore instal!ents&
or the b"yer nelects or ref"ses witho"t ."st ca"se to take delivery of or pay for one !ore
instal!ents& it depends in each case on the ter!s of the contract and the circ"!stances of the case&
whether the breach of contract is so !aterial as to ."stify the in."red party in ref"sin to proceed
f"rther and s"in for da!aes for breach of the entire contract& or whether the breach is severable&
ivin rise to a clai! for co!pensation b"t not to a riht to treat the whole contract as broken. (n)
Art. 1+3*. 2here oods are delivered to the b"yer& which he has not previo"sly e)a!ined& he is not
dee!ed to have accepted the! "nless and "ntil he has had a reasonable opport"nity of e)a!inin
the! for the p"rpose of ascertainin whether they are in confor!ity with the contract if there is no
stip"lation to the contrary.
?nless otherwise areed& when the seller tenders delivery of oods to the b"yer& he is bo"nd& on
re0"est& to afford the b"yer a reasonable opport"nity of e)a!inin the oods for the p"rpose of
ascertainin whether they are in confor!ity with the contract.
2here oods are delivered to a carrier by the seller& in accordance with an order fro! or aree!ent
with the b"yer& "pon the ter!s that the oods shall not be delivered by the carrier to the b"yer "ntil
he has paid the price& whether s"ch ter!s are indicated by !arkin the oods with the words
"collect on delivery&" or otherwise& the b"yer is not entitled to e)a!ine the oods before the
pay!ent of the price& in the absence of aree!ent or "sae of trade per!ittin s"ch e)a!ination.
(n)
Art. 1+3+. The b"yer is dee!ed to have accepted the oods when he inti!ates to the seller that he
has accepted the!& or when the oods have been delivered to hi!& and he does any act in relation
to the! which is inconsistent with the ownership of the seller& or when& after the lapse of a
reasonable ti!e& he retains the oods witho"t inti!atin to the seller that he has re.ected the!. (n)
Art. 1+3,. (n the absence of e)press or i!plied aree!ent of the parties& acceptance of the oods
by the b"yer shall not dischare the seller fro! liability in da!aes or other leal re!edy for
breach of any pro!ise or warranty in the contract of sale. B"t& if& after acceptance of the oods& the
b"yer fails to ive notice to the seller of the breach in any pro!ise of warranty within a reasonable
ti!e after the b"yer knows& or o"ht to know of s"ch breach& the seller shall not be liable therefor.
(n)
Art. 1+3/. ?nless otherwise areed& where oods are delivered to the b"yer& and he ref"ses to
accept the!& havin the riht so to do& he is not bo"nd to ret"rn the! to the seller& b"t it is
s"fficient if he notifies the seller that he ref"ses to accept the!. (f he vol"ntarily constit"tes hi!self
a depositary thereof& he shall be liable as s"ch. (n)
Art. 1+33. (f there is no stip"lation as specified in the first pararaph of article 1+2'& when the
b"yer;s ref"sal to accept the oods is witho"t ."st ca"se& the title thereto passes to hi! fro! the
!o!ent they are placed at his disposal. (n)
Art. 1+35. The vendee shall owe interest for the period between the delivery of the thin and the
pay!ent of the price& in the followin three cases<
(1) @ho"ld it have been so stip"lated8
(2) @ho"ld the thin sold and delivered prod"ce fr"its or inco!e8
(') @ho"ld he be in defa"lt& fro! the ti!e of ."dicial or e)tra."dicial de!and for the pay!ent of the
price. (1+71a)
Art. 1+57. @ho"ld the vendee be dist"rbed in the possession or ownership of the thin ac0"ired& or
sho"ld he have reasonable ro"nds to fear s"ch dist"rbance& by a vindicatory action or a
foreclos"re of !ortae& he !ay s"spend the pay!ent of the price "ntil the vendor has ca"sed the
dist"rbance or daner to cease& "nless the latter ives sec"rity for the ret"rn of the price in a proper
case& or it has been stip"lated that& notwithstandin any s"ch continency& the vendee shall be
bo"nd to !ake the pay!ent. A !ere act of trespass shall not a"thori%e the s"spension of the
pay!ent of the price. (1+72a)
Art. 1+51. @ho"ld the vendor have reasonable ro"nds to fear the loss of i!!ovable property sold
and its price& he !ay i!!ediately s"e for the rescission of the sale.
@ho"ld s"ch ro"nd not e)ist& the provisions of Article 1151 shall be observed. (1+7')
Art. 1+52. (n the sale of i!!ovable property& even tho"h it !ay have been stip"lated that "pon
fail"re to pay the price at the ti!e areed "pon the rescission of the contract shall of riht take
place& the vendee !ay pay& even after the e)piration of the period& as lon as no de!and for
rescission of the contract has been !ade "pon hi! either ."dicially or by a notarial act. After the
de!and& the co"rt !ay not rant hi! a new ter!. (1+7*a)
Art. 1+5'. 2ith respect to !ovable property& the rescission of the sale shall of riht take place in
the interest of the vendor& if the vendee& "pon the e)piration of the period fi)ed for the delivery of
the thin& sho"ld not have appeared to receive it& or& havin appeared& he sho"ld not have tendered
the price at the sa!e ti!e& "nless a loner period has been stip"lated for its pay!ent. (1+7+)

C9APT:- ,
ACT(#6@ A#- B-:AC9 #A C#6T-ACT #A @AL: #A $##D@

Art. 1+5*. Actions for breach of the contract of sale of oods shall be overned partic"larly by the
provisions of this Chapter& and as to !atters not specifically provided for herein& by other
applicable provisions of this Title. (n)
Art. 1+5+. 2here& "nder a contract of sale& the ownership of the oods has passed to the b"yer and
he wronf"lly nelects or ref"ses to pay for the oods accordin to the ter!s of the contract of
sale& the seller !ay !aintain an action aainst hi! for the price of the oods.
2here& "nder a contract of sale& the price is payable on a certain day& irrespective of delivery or of
transfer of title and the b"yer wronf"lly nelects or ref"ses to pay s"ch price& the seller !ay
!aintain an action for the price altho"h the ownership in the oods has not passed. B"t it shall be
a defense to s"ch an action that the seller at any ti!e before the ."d!ent in s"ch action has
!anifested an inability to perfor! the contract of sale on his part or an intention not to perfor! it.
Altho"h the ownership in the oods has not passed& if they cannot readily be resold for a
reasonable price& and if the provisions of article 1+5,& fo"rth pararaph& are not applicable& the
seller !ay offer to deliver the oods to the b"yer& and& if the b"yer ref"ses to receive the!& !ay
notify the b"yer that the oods are thereafter held by the seller as bailee for the b"yer. Thereafter
the seller !ay treat the oods as the b"yer;s and !ay !aintain an action for the price. (n)
Art. 1+5,. 2here the b"yer wronf"lly nelects or ref"ses to accept and pay for the oods& the
seller !ay !aintain an action aainst hi! for da!aes for nonacceptance.
The !eas"re of da!aes is the esti!ated loss directly and nat"rally res"ltin in the ordinary co"rse
of events fro! the b"yer;s breach of contract.
2here there is an available !arket for the oods in 0"estion& the !eas"re of da!aes is& in the
absence of special circ"!stances showin pro)i!ate da!ae of a different a!o"nt& the difference
between the contract price and the !arket or c"rrent price at the ti!e or ti!es when the oods
o"ht to have been accepted& or& if no ti!e was fi)ed for acceptance& then at the ti!e of the ref"sal
to accept.
(f& while labor or e)pense of !aterial a!o"nt is necessary on the part of the seller to enable hi! to
f"lfill his obliations "nder the contract of sale& the b"yer rep"diates the contract or notifies the
seller to proceed no f"rther therewith& the b"yer shall be liable to the seller for labor perfor!ed or
e)penses !ade before receivin notice of the b"yer;s rep"diation or co"nter!and. The profit the
seller wo"ld have !ade if the contract or the sale had been f"lly perfor!ed shall be considered in
awardin the da!aes. (n)
Art. 1+5/. 2here the oods have not been delivered to the b"yer& and the b"yer has rep"diated the
contract of sale& or has !anifested his inability to perfor! his obliations there"nder& or has
co!!itted a breach thereof& the seller !ay totally rescind the contract of sale by ivin notice of
his election so to do to the b"yer. (n)
Art. 1+53. 2here the seller has broken a contract to deliver specific or ascertained oods& a co"rt
!ay& on the application of the b"yer& direct that the contract shall be perfor!ed specifically&
witho"t ivin the seller the option of retainin the oods on pay!ent of da!aes. The ."d!ent
or decree !ay be "nconditional& or "pon s"ch ter!s and conditions as to da!aes& pay!ent of the
price and otherwise& as the co"rt !ay dee! ."st. (n)
Art. 1+55. 2here there is a breach of warranty by the seller& the b"yer !ay& at his election<
(1) Accept or keep the oods and set "p aainst the seller& the breach of warranty by way of
reco"p!ent in di!in"tion or e)tinction of the price8
(2) Accept or keep the oods and !aintain an action aainst the seller for da!aes for the breach of
warranty8
(') -ef"se to accept the oods& and !aintain an action aainst the seller for da!aes for the breach
of warranty8
(*) -escind the contract of sale and ref"se to receive the oods or if the oods have already been
received& ret"rn the! or offer to ret"rn the! to the seller and recover the price or any part thereof
which has been paid.

2hen the b"yer has clai!ed and been ranted a re!edy in anyone of these ways& no other re!edy
can thereafter be ranted& witho"t pre."dice to the provisions of the second pararaph of Article
1151.
2here the oods have been delivered to the b"yer& he cannot rescind the sale if he knew of the
breach of warranty when he accepted the oods witho"t protest& or if he fails to notify the seller
within a reasonable ti!e of the election to rescind& or if he fails to ret"rn or to offer to ret"rn the
oods to the seller in s"bstantially as ood condition as they were in at the ti!e the ownership was
transferred to the b"yer. B"t if deterioration or in."ry of the oods is d"e to the breach or warranty&
s"ch deterioration or in."ry shall not prevent the b"yer fro! ret"rnin or offerin to ret"rn the
oods to the seller and rescindin the sale.
2here the b"yer is entitled to rescind the sale and elects to do so& he shall cease to be liable for the
price "pon ret"rnin or offerin to ret"rn the oods. (f the price or any part thereof has already
been paid& the seller shall be liable to repay so !"ch thereof as has been paid& conc"rrently with the
ret"rn of the oods& or i!!ediately after an offer to ret"rn the oods in e)chane for repay!ent of
the price.
2here the b"yer is entitled to rescind the sale and elects to do so& if the seller ref"ses to accept an
offer of the b"yer to ret"rn the oods& the b"yer shall thereafter be dee!ed to hold the oods as
bailee for the seller& b"t s"b.ect to a lien to sec"re pay!ent of any portion of the price which has
been paid& and with the re!edies for the enforce!ent of s"ch lien allowed to an "npaid seller by
Article 1+2,.
(+) (n the case of breach of warranty of 0"ality& s"ch loss& in the absence of special circ"!stances
showin pro)i!ate da!ae of a reater a!o"nt& is the difference between the val"e of the oods at
the ti!e of delivery to the b"yer and the val"e they wo"ld have had if they had answered to the
warranty. (n)
C9APT:- /
:ET(6$?(@9=:6T #A @AL:

Art. 1,77. @ales are e)tin"ished by the sa!e ca"ses as all other obliations& by those stated in the
precedin articles of this Title& and by conventional or leal rede!ption. (1+7,)

@:CT(#6 1. 1 Conventional -ede!ption

Art. 1,71. Conventional rede!ption shall take place when the vendor reserves the riht to
rep"rchase the thin sold& with the obliation to co!ply with the provisions of Article 1,1, and
other stip"lations which !ay have been areed "pon. (1+7/)
Art. 1,72. The contract shall be pres"!ed to be an e0"itable !ortae& in any of the followin
cases<
(1) 2hen the price of a sale with riht to rep"rchase is "n"s"ally inade0"ate8
(2) 2hen the vendor re!ains in possession as lessee or otherwise8
(') 2hen "pon or after the e)piration of the riht to rep"rchase another instr"!ent e)tendin the
period of rede!ption or rantin a new period is e)ec"ted8
(*) 2hen the p"rchaser retains for hi!self a part of the p"rchase price8
(+) 2hen the vendor binds hi!self to pay the ta)es on the thin sold8
(,) (n any other case where it !ay be fairly inferred that the real intention of the parties is that the
transaction shall sec"re the pay!ent of a debt or the perfor!ance of any other obliation.
(n any of the foreoin cases& any !oney& fr"its& or other benefit to be received by the vendee as
rent or otherwise shall be considered as interest which shall be s"b.ect to the "s"ry laws. (n)
Art. 1,7'. (n case of do"bt& a contract p"rportin to be a sale with riht to rep"rchase shall be
constr"ed as an e0"itable !ortae. (n)
Art. 1,7*. The provisions of Article 1,72 shall also apply to a contract p"rportin to be an absol"te
sale. (n)
Art. 1,7+. (n the cases referred to in Articles 1,72 and 1,7*& the apparent vendor !ay ask for the
refor!ation of the instr"!ent. (n)
Art. 1,7,. The riht referred to in Article 1,71& in the absence of an e)press aree!ent& shall last
fo"r years fro! the date of the contract.
@ho"ld there be an aree!ent& the period cannot e)ceed ten years.
9owever& the vendor !ay still e)ercise the riht to rep"rchase within thirty days fro! the ti!e
final ."d!ent was rendered in a civil action on the basis that the contract was a tr"e sale with riht
to rep"rchase. (1+73a)
Art. 1,7/. (n case of real property& the consolidation of ownership in the vendee by virt"e of the
fail"re of the vendor to co!ply with the provisions of article 1,1, shall not be recorded in the
-eistry of Property witho"t a ."dicial order& after the vendor has been d"ly heard. (n)
Art. 1,73. The vendor !ay brin his action aainst every possessor whose riht is derived fro! the
vendee& even if in the second contract no !ention sho"ld have been !ade of the riht to
rep"rchase& witho"t pre."dice to the provisions of the =ortae Law and the Land -eistration
Law with respect to third persons. (1+17)
Art. 1,75. The vendee is s"broated to the vendor;s rihts and actions. (1+11)
Art. 1,17. The creditors of the vendor cannot !ake "se of the riht of rede!ption aainst the
vendee& "ntil after they have e)ha"sted the property of the vendor. (1+12)
Art. 1,11. (n a sale with a riht to rep"rchase& the vendee of a part of an "ndivided i!!ovable who
ac0"ires the whole thereof in the case of article *53& !ay co!pel the vendor to redee! the whole
property& if the latter wishes to !ake "se of the riht of rede!ption. (1+1')
Art. 1,12. (f several persons& .ointly and in the sa!e contract& sho"ld sell an "ndivided i!!ovable
with a riht of rep"rchase& none of the! !ay e)ercise this riht for !ore than his respective share.
The sa!e r"le shall apply if the person who sold an i!!ovable alone has left several heirs& in
which case each of the latter !ay only redee! the part which he !ay have ac0"ired. (1+1*)
Art. 1,1'. (n the case of the precedin article& the vendee !ay de!and of all the vendors or co1
heirs that they co!e to an aree!ent "pon the p"rchase of the whole thin sold8 and sho"ld they
fail to do so& the vendee cannot be co!pelled to consent to a partial rede!ption. (1+1+)
Art. 1,1*. :ach one of the co1owners of an "ndivided i!!ovable who !ay have sold his share
separately& !ay independently e)ercise the riht of rep"rchase as reards his own share& and the
vendee cannot co!pel hi! to redee! the whole property. (1+1,)
Art. 1,1+. (f the vendee sho"ld leave several heirs& the action for rede!ption cannot be bro"ht
aainst each of the! e)cept for his own share& whether the thin be "ndivided& or it has been
partitioned a!on the!.
B"t if the inheritance has been divided& and the thin sold has been awarded to one of the heirs& the
action for rede!ption !ay be instit"ted aainst hi! for the whole. (1+1/)
Art. 1,1,. The vendor cannot avail hi!self of the riht of rep"rchase witho"t ret"rnin to the
vendee the price of the sale& and in addition<
(1) The e)penses of the contract& and any other leiti!ate pay!ents !ade by reason of the sale8
(2) The necessary and "sef"l e)penses !ade on the thin sold. (1+13)
Art. 1,1/. (f at the ti!e of the e)ec"tion of the sale there sho"ld be on the land& visible or rowin
fr"its& there shall be no rei!b"rse!ent for or proratin of those e)istin at the ti!e of rede!ption&
if no inde!nity was paid by the p"rchaser when the sale was e)ec"ted.
@ho"ld there have been no fr"its at the ti!e of the sale and so!e e)ist at the ti!e of rede!ption&
they shall be prorated between the rede!ptioner and the vendee& ivin the latter the part
correspondin to the ti!e he possessed the land in the last year& co"nted fro! the anniversary of
the date of the sale. (1+15a)
Art. 1,13. The vendor who recovers the thin sold shall receive it free fro! all chares or
!ortaes constit"ted by the vendee& b"t he shall respect the leases which the latter !ay have
e)ec"ted in ood faith& and in accordance with the c"sto! of the place where the land is sit"ated.
(1+27)
@:CT(#6 2. 1 Leal -ede!ption

Art. 1,15. Leal rede!ption is the riht to be s"broated& "pon the sa!e ter!s and conditions
stip"lated in the contract& in the place of one who ac0"ires a thin by p"rchase or dation in
pay!ent& or by any other transaction whereby ownership is trans!itted by onero"s title. (1+21a)
Art. 1,27. A co1owner of a thin !ay e)ercise the riht of rede!ption in case the shares of all the
other co1owners or of any of the!& are sold to a third person. (f the price of the alienation is rossly
e)cessive& the rede!ptioner shall pay only a reasonable one.
@ho"ld two or !ore co1owners desire to e)ercise the riht of rede!ption& they !ay only do so in
proportion to the share they !ay respectively have in the thin owned in co!!on. (1+22a)
Art. 1,21. The owners of ad.oinin lands shall also have the riht of rede!ption when a piece of
r"ral land& the area of which does not e)ceed one hectare& is alienated& "nless the rantee does not
own any r"ral land.
This riht is not applicable to ad.acent lands which are separated by brooks& drains& ravines& roads
and other apparent servit"des for the benefit of other estates.
(f two or !ore ad.oinin owners desire to e)ercise the riht of rede!ption at the sa!e ti!e& the
owner of the ad.oinin land of s!aller area shall be preferred8 and sho"ld both lands have the sa!e
area& the one who first re0"ested the rede!ption. (1+2'a)
Art. 1,22. 2henever a piece of "rban land which is so s!all and so sit"ated that a !a.or portion
thereof cannot be "sed for any practical p"rpose within a reasonable ti!e& havin been bo"ht
!erely for spec"lation& is abo"t to be re1sold& the owner of any ad.oinin land has a riht of pre1
e!ption at a reasonable price.
(f the re1sale has been perfected& the owner of the ad.oinin land shall have a riht of rede!ption&
also at a reasonable price.
2hen two or !ore owners of ad.oinin lands wish to e)ercise the riht of pre1e!ption or
rede!ption& the owner whose intended "se of the land in 0"estion appears best ."stified shall be
preferred. (n)
Art. 1,2'. The riht of leal pre1e!ption or rede!ption shall not be e)ercised e)cept within thirty
days fro! the notice in writin by the prospective vendor& or by the vendor& as the case !ay be.
The deed of sale shall not be recorded in the -eistry of Property& "nless acco!panied by an
affidavit of the vendor that he has iven written notice thereof to all possible rede!ptioners.
The riht of rede!ption of co1owners e)cl"des that of ad.oinin owners. (1+2*a)

C9APT:- 3
A@@($6=:6T #A C-:D(T@ A6D #T9:- (6C#-P#-:AL -($9T@

Art. 1,2*. An assin!ent of creditors and other incorporeal rihts shall be perfected in accordance
with the provisions of Article 1*/+. (n)
Art. 1,2+. An assin!ent of a credit& riht or action shall prod"ce no effect as aainst third person&
"nless it appears in a p"blic instr"!ent& or the instr"!ent is recorded in the -eistry of Property in
case the assin!ent involves real property. (1+2,)
Art. 1,2,. The debtor who& before havin knowlede of the assin!ent& pays his creditor shall be
released fro! the obliation. (1+2/)
Art. 1,2/. The assin!ent of a credit incl"des all the accessory rihts& s"ch as a "aranty&
!ortae& plede or preference. (1+23)
Art. 1,23. The vendor in ood faith shall be responsible for the e)istence and leality of the credit
at the ti!e of the sale& "nless it sho"ld have been sold as do"btf"l8 b"t not for the solvency of the
debtor& "nless it has been so e)pressly stip"lated or "nless the insolvency was prior to the sale and
of co!!on knowlede.
:ven in these cases he shall only be liable for the price received and for the e)penses specified in
6o. 1 of Article 1,1,.
The vendor in bad faith shall always be answerable for the pay!ent of all e)penses& and for
da!aes. (1+25)
Art. 1,25. (n case the assinor in ood faith sho"ld have !ade hi!self responsible for the solvency
of the debtor& and the contractin parties sho"ld not have areed "pon the d"ration of the liability& it
shall last for one year only& fro! the ti!e of the assin!ent if the period had already e)pired.
(f the credit sho"ld be payable within a ter! or period which has not yet e)pired& the liability shall
cease one year after the !at"rity. (1+'7a)
Art. 1,'7. #ne who sells an inheritance witho"t en"!eratin the thins of which it is co!posed&
shall only be answerable for his character as an heir. (1+'1)
Art. 1,'1. #ne who sells for a l"!p s"! the whole of certain rihts& rents& or prod"cts& shall
co!ply by answerin for the leiti!acy of the whole in eneral8 b"t he shall not be oblied to
warrant each of the vario"s parts of which it !ay be co!posed& e)cept in the case of eviction fro!
the whole or the part of reater val"e. (1+'2a)
Art. 1,'2. @ho"ld the vendor have profited by so!e of the fr"its or received anythin fro! the
inheritance sold& he shall pay the vendee thereof& if the contrary has not been stip"lated. (1+'')
Art. 1,''. The vendee shall& on his part& rei!b"rse the vendor for all that the latter !ay have paid
for the debts of and chares on the estate and satisfy the credits he !ay have aainst the sa!e&
"nless there is an aree!ent to the contrary. (1+'*)
Art. 1,'*. 2hen a credit or other incorporeal riht in litiation is sold& the debtor shall have a riht
to e)tin"ish it by rei!b"rsin the assinee for the price the latter paid therefor& the ."dicial costs
inc"rred by hi!& and the interest on the price fro! the day on which the sa!e was paid.
A credit or other incorporeal riht shall be considered in litiation fro! the ti!e the co!plaint
concernin the sa!e is answered.
The debtor !ay e)ercise his riht within thirty days fro! the date the assinee de!ands pay!ent
fro! hi!. (1+'+)
Art. 1,'+. Aro! the provisions of the precedin article shall be e)cepted the assin!ents or sales
!ade<
(1) To a co1heir or co1owner of the riht assined8
(2) To a creditor in pay!ent of his credit8
(') To the possessor of a tene!ent or piece of land which is s"b.ect to the riht in litiation
assined. (1+',)
C9APT:- 5
$:6:-AL P-#>(@(#6@

Art. 1,',. (n the precedin articles in this Title overnin the sale of oods& "nless the conte)t or
s"b.ect !atter otherwise re0"ires<
(1) "Doc"!ent of title to oods" incl"des any bill of ladin& dock warrant& "0"edan&" or wareho"se
receipt or order for the delivery of oods& or any other doc"!ent "sed in the ordinary co"rse of
b"siness in the sale or transfer of oods& as proof of the possession or control of the oods& or
a"thori%in or p"rportin to a"thori%e the possessor of the doc"!ent to transfer or receive& either
by endorse!ent or by delivery& oods represented by s"ch doc"!ent.
"$oods" incl"des all chattels personal b"t not thins in action or !oney of leal tender in the
Philippines. The ter! incl"des rowin fr"its or crops.
"#rder" relatin to doc"!ents of title !eans an order by endorse!ent on the doc"!ents.
"I"ality of oods" incl"des their state or condition.
"@pecific oods" !eans oods identified and areed "pon at the ti!e a contract of sale is !ade.
An antecedent or pre1e)istin clai!& whether for !oney or not& constit"tes "val"e" where oods or
doc"!ents of title are taken either in satisfaction thereof or as sec"rity therefor.
(2) A person is insolvent within the !eanin of this Title who either has ceased to pay his debts in
the ordinary co"rse of b"siness or cannot pay his debts as they beco!e d"e& whether insolvency
proceedins have been co!!enced or not.
(') $oods are in a "deliverable state" within the !eanin of this Title when they are in s"ch a state
that the b"yer wo"ld& "nder the contract& be bo"nd to take delivery of the!. (n)
Art. 1,'/. The provisions of this Title are s"b.ect to the r"les laid down by the =ortae Law and
the Land -eistration Law with reard to i!!ovable property. (1+'/a)

Title >((. 1 BA-T:- #- :EC9A6$:

Art. 1,'3. By the contract of barter or e)chane one of the parties binds hi!self to ive one thin
in consideration of the other;s pro!ise to ive another thin. (1+'3a)
Art. 1,'5. (f one of the contractin parties& havin received the thin pro!ised hi! in barter&
sho"ld prove that it did not belon to the person who ave it& he cannot be co!pelled to deliver that
which he offered in e)chane& b"t he shall be entitled to da!aes. (1+'5a)
Art. 1,*7. #ne who loses by eviction the thin received in barter !ay recover that which he ave
in e)chane with a riht to da!aes& or he !ay only de!and an inde!nity for da!aes. 9owever&
he can only !ake "se of the riht to recover the thin which he has delivered while the sa!e
re!ains in the possession of the other party& and witho"t pre."dice to the rihts ac0"ired in ood
faith in the !eanti!e by a third person. (1+*7a)
Art. 1,*1. As to all !atters not specifically provided for in this Title& barter shall be overned by
the provisions of the precedin Title relatin to sales. (1+*1a)

Title >(((. 1 L:A@:

C9APT:- 1
$:6:-AL P-#>(@(#6@

Art. 1,*2. The contract of lease !ay be of thins& or of work and service. (1+*2)
Art. 1,*'. (n the lease of thins& one of the parties binds hi!self to ive to another the en.oy!ent
or "se of a thin for a price certain& and for a period which !ay be definite or indefinite. 9owever&
no lease for !ore than ninety1nine years shall be valid. (1+*'a)
Art. 1,**. (n the lease of work or service& one of the parties binds hi!self to e)ec"te a piece of
work or to render to the other so!e service for a price certain& b"t the relation of principal and
aent does not e)ist between the!. (1+**a)
Art. 1,*+. Cons"!able oods cannot be the s"b.ect !atter of a contract of lease& e)cept when they
are !erely to be e)hibited or when they are accessory to an ind"strial establish!ent. (1+*+a)

C9APT:- 2
L:A@: #A -?-AL A6D ?-BA6 LA6D@

@:CT(#6 1. 1 $eneral Provisions

Art. 1,*,. The persons dis0"alified to b"y referred to in Articles 1*57 and 1*51& are also
dis0"alified to beco!e lessees of the thins !entioned therein. (n)
Art. 1,*/. (f a lease is to be recorded in the -eistry of Property& the followin persons cannot
constit"te the sa!e witho"t proper a"thority< the h"sband with respect to the wife;s paraphernal
real estate& the father or "ardian as to the property of the !inor or ward& and the !anaer witho"t
special power. (1+*3a)
Art. 1,*3. :very lease of real estate !ay be recorded in the -eistry of Property. ?nless a lease is
recorded& it shall not be bindin "pon third persons. (1+*5a)
Art. 1,*5. The lessee cannot assin the lease witho"t the consent of the lessor& "nless there is a
stip"lation to the contrary. (n)
Art. 1,+7. 2hen in the contract of lease of thins there is no e)press prohibition& the lessee !ay
s"blet the thin leased& in whole or in part& witho"t pre."dice to his responsibility for the
perfor!ance of the contract toward the lessor. (1++7)
Art. 1,+1. 2itho"t pre."dice to his obliation toward the s"blessor& the s"blessee is bo"nd to the
lessor for all acts which refer to the "se and preservation of the thin leased in the !anner
stip"lated between the lessor and the lessee. (1++1)
Art. 1,+2. The s"blessee is s"bsidiarily liable to the lessor for any rent d"e fro! the lessee.
9owever& the s"blessee shall not be responsible beyond the a!o"nt of rent d"e fro! hi!& in
accordance with the ter!s of the s"blease& at the ti!e of the e)tra."dicial de!and by the lessor.
Pay!ents of rent in advance by the s"blessee shall be dee!ed not to have been !ade& so far as the
lessor;s clai! is concerned& "nless said pay!ents were effected in virt"e of the c"sto! of the place.
(1++2a)
Art. 1,+'. The provisions overnin warranty& contained in the Title on @ales& shall be applicable to
the contract of lease.
(n the cases where the ret"rn of the price is re0"ired& red"ction shall be !ade in proportion to the
ti!e d"rin which the lessee en.oyed the thin. (1++')
@:CT(#6 2. 1 -ihts and #bliations of the Lessor and the Lessee
Art. 1,+*. The lessor is oblied<
(1) To deliver the thin which is the ob.ect of the contract in s"ch a condition as to render it fit for
the "se intended8
(2) To !ake on the sa!e d"rin the lease all the necessary repairs in order to keep it s"itable for
the "se to which it has been devoted& "nless there is a stip"lation to the contrary8
(') To !aintain the lessee in the peacef"l and ade0"ate en.oy!ent of the lease for the entire
d"ration of the contract. (1++*a)
Art. 1,++. (f the thin leased is totally destroyed by a fort"ito"s event& the lease is e)tin"ished. (f
the destr"ction is partial& the lessee !ay choose between a proportional red"ction of the rent and a
rescission of the lease. (n)
Art. 1,+,. The lessor of a b"siness or ind"strial establish!ent !ay contin"e enain in the sa!e
b"siness or ind"stry to which the lessee devotes the thin leased& "nless there is a stip"lation to the
contrary. (n)
Art. 1,+/. The lessee is oblied<
(1) To pay the price of the lease accordin to the ter!s stip"lated8
(2) To "se the thin leased as a dilient father of a fa!ily& devotin it to the "se stip"lated8 and in
the absence of stip"lation& to that which !ay be inferred fro! the nat"re of the thin leased&
accordin to the c"sto! of the place8
(') To pay e)penses for the deed of lease. (1+++)
Art. 1,+3. The lessee !ay s"spend the pay!ent of the rent in case the lessor fails to !ake the
necessary repairs or to !aintain the lessee in peacef"l and ade0"ate en.oy!ent of the property
leased. (n)
Art. 1,+5. (f the lessor or the lessee sho"ld not co!ply with the obliations set forth in Articles
1,+* and 1,+/& the arieved party !ay ask for the rescission of the contract and inde!nification
for da!aes& or only the latter& allowin the contract to re!ain in force. (1++,)
Art. 1,,7. (f a dwellin place or any other b"ildin intended for h"!an habitation is in s"ch a
condition that its "se brins i!!inent and serio"s daner to life or health& the lessee !ay ter!inate
the lease at once by notifyin the lessor& even if at the ti!e the contract was perfected the for!er
knew of the danero"s condition or waived the riht to rescind the lease on acco"nt of this
condition. (n)
Art. 1,,1. The lessor cannot alter the for! of the thin leased in s"ch a way as to i!pair the "se to
which the thin is devoted "nder the ter!s of the lease. (1++/a)
Art. 1,,2. (f d"rin the lease it sho"ld beco!e necessary to !ake so!e "rent repairs "pon the
thin leased& which cannot be deferred "ntil the ter!ination of the lease& the lessee is oblied to
tolerate the work& altho"h it !ay be very annoyin to hi!& and altho"h d"rin the sa!e& he !ay
be deprived of a part of the pre!ises.
(f the repairs last !ore than forty days the rent shall be red"ced in proportion to the ti!e 1
incl"din the first forty days 1 and the part of the property of which the lessee has been deprived.
2hen the work is of s"ch a nat"re that the portion which the lessee and his fa!ily need for their
dwellin beco!es "ninhabitable& he !ay rescind the contract if the !ain p"rpose of the lease is to
provide a dwellin place for the lessee. (1++3a)
Art. 1,,'. The lessee is oblied to brin to the knowlede of the proprietor& within the shortest
possible ti!e& every "s"rpation or "ntoward act which any third person !ay have co!!itted or
!ay be openly preparin to carry o"t "pon the thin leased.
9e is also oblied to advise the owner& with the sa!e "rency& of the need of all repairs incl"ded in
6o. 2 of Article 1,+*.
(n both cases the lessee shall be liable for the da!aes which& thro"h his nelience& !ay be
s"ffered by the proprietor.
(f the lessor fails to !ake "rent repairs& the lessee& in order to avoid an i!!inent daner& !ay
order the repairs at the lessor;s cost. (1++5a)
Art. 1,,*. The lessor is not oblied to answer for a !ere act of trespass which a third person !ay
ca"se on the "se of the thin leased8 b"t the lessee shall have a direct action aainst the intr"der.
There is a !ere act of trespass when the third person clai!s no riht whatever. (1+,7a)
Art. 1,,+. The lessee shall ret"rn the thin leased& "pon the ter!ination of the lease& as he received
it& save what has been lost or i!paired by the lapse of ti!e& or by ordinary wear and tear& or fro!
an inevitable ca"se. (1+,1a)
Art. 1,,,. (n the absence of a state!ent concernin the condition of the thin at the ti!e the lease
was constit"ted& the law pres"!es that the lessee received it in ood condition& "nless there is proof
to the contrary. (1+,2)
Art. 1,,/. The lessee is responsible for the deterioration or loss of the thin leased& "nless he
proves that it took place witho"t his fa"lt. This b"rden of proof on the lessee does not apply when
the destr"ction is d"e to earth0"ake& flood& stor! or other nat"ral cala!ity. (1+,'a)
Art. 1,,3. The lessee is liable for any deterioration ca"sed by !e!bers of his ho"sehold and by
"ests and visitors. (1+,*a)
Art. 1,,5. (f the lease was !ade for a deter!inate ti!e& it ceases "pon the day fi)ed& witho"t the
need of a de!and. (1+,+)
Art. 1,/7. (f at the end of the contract the lessee sho"ld contin"e en.oyin the thin leased for
fifteen days with the ac0"iescence of the lessor& and "nless a notice to the contrary by either party
has previo"sly been iven& it is "nderstood that there is an i!plied new lease& not for the period of
the oriinal contract& b"t for the ti!e established in Articles 1,32 and 1,3/. The other ter!s of the
oriinal contract shall be revived. (1+,,a)
Art. 1,/1. (f the lessee contin"es en.oyin the thin after the e)piration of the contract& over the
lessor;s ob.ection& the for!er shall be s"b.ect to the responsibilities of a possessor in bad faith. (n)
Art. 1,/2. (n case of an i!plied new lease& the obliations contracted by a third person for the
sec"rity of the principal contract shall cease with respect to the new lease. (1+,/)
Art. 1,/'. The lessor !ay ."dicially e.ect the lessee for any of the followin ca"ses<
(1) 2hen the period areed "pon& or that which is fi)ed for the d"ration of leases "nder Articles
1,32 and 1,3/& has e)pired8
(2) Lack of pay!ent of the price stip"lated8
(') >iolation of any of the conditions areed "pon in the contract8
(*) 2hen the lessee devotes the thin leased to any "se or service not stip"lated which ca"ses the
deterioration thereof8 or if he does not observe the re0"ire!ent in 6o. 2 of Article 1,+/& as reards
the "se thereof.
The e.ect!ent of tenants of aric"lt"ral lands is overned by special laws. (1+,5a)
Art. 1,/*. (n e.ect!ent cases where an appeal is taken the re!edy ranted in Article +'5& second
pararaph& shall also apply& if the hiher co"rt is satisfied that the lessee;s appeal is frivolo"s or
dilatory& or that the lessor;s appeal is pri!a facie !eritorio"s. The period of ten days referred to in
said article shall be co"nted fro! the ti!e the appeal is perfected. (n)
Art. 1,/+. :)cept in cases stated in Article 1,/'& the lessee shall have a riht to !ake "se of the
periods established in Articles 1,32 and 1,3/. (1+/7)
Art. 1,/,. The p"rchaser of a piece of land which is "nder a lease that is not recorded in the
-eistry of Property !ay ter!inate the lease& save when there is a stip"lation to the contrary in the
contract of sale& or when the p"rchaser knows of the e)istence of the lease.
(f the b"yer !akes "se of this riht& the lessee !ay de!and that he be allowed to ather the fr"its
of the harvest which corresponds to the c"rrent aric"lt"ral year and that the vendor inde!nify hi!
for da!aes s"ffered.
(f the sale is fictitio"s& for the p"rpose of e)tin"ishin the lease& the s"pposed vendee cannot !ake
"se of the riht ranted in the first pararaph of this article. The sale is pres"!ed to be fictitio"s if
at the ti!e the s"pposed vendee de!ands the ter!ination of the lease& the sale is not recorded in
the -eistry of Property. (1+/1a)
Art. 1,//. The p"rchaser in a sale with the riht of rede!ption cannot !ake "se of the power to
e.ect the lessee "ntil the end of the period for the rede!ption. (1+/2)
Art. 1,/3. (f the lessee !akes& in ood faith& "sef"l i!prove!ents which are s"itable to the "se for
which the lease is intended& witho"t alterin the for! or s"bstance of the property leased& the lessor
"pon the ter!ination of the lease shall pay the lessee one1half of the val"e of the i!prove!ents at
that ti!e. @ho"ld the lessor ref"se to rei!b"rse said a!o"nt& the lessee !ay re!ove the
i!prove!ents& even tho"h the principal thin !ay s"ffer da!ae thereby. 9e shall not& however&
ca"se any !ore i!pair!ent "pon the property leased than is necessary.
2ith reard to orna!ental e)penses& the lessee shall not be entitled to any rei!b"rse!ent& b"t he
!ay re!ove the orna!ental ob.ects& provided no da!ae is ca"sed to the principal thin& and the
lessor does not choose to retain the! by payin their val"e at the ti!e the lease is e)tin"ished. (n)
Art. 1,/5. (f nothin has been stip"lated concernin the place and the ti!e for the pay!ent of the
lease& the provisions or Article 12+1 shall be observed as reards the place8 and with respect to the
ti!e& the c"sto! of the place shall be followed. (1+/*)

@:CT(#6 '. 1 @pecial Provisions for Leases of -"ral Lands

Art. 1,37. The lessee shall have no riht to a red"ction of the rent on acco"nt of the sterility of the
land leased& or by reason of the loss of fr"its d"e to ordinary fort"ito"s events8 b"t he shall have
s"ch riht in case of the loss of !ore than one1half of the fr"its thro"h e)traordinary and
"nforeseen fort"ito"s events& save always when there is a specific stip"lation to the contrary.
:)traordinary fort"ito"s events are "nderstood to be< fire& war& pestilence& "n"s"al flood& loc"sts&
earth0"ake& or others which are "nco!!on& and which the contractin parties co"ld not have
reasonably foreseen. (1+/+)
Art. 1,31. 6either does the lessee have any riht to a red"ction of the rent if the fr"its are lost after
they have been separated fro! their stalk& root or tr"nk. (1+/,)
Art. 1,32. The lease of a piece of r"ral land& when its d"ration has not been fi)ed& is "nderstood to
have been for all the ti!e necessary for the atherin of the fr"its which the whole estate leased
!ay yield in one year& or which it !ay yield once& altho"h two or !ore years have to elapse for
the p"rpose. (1+//a)
Art. 1,3'. The o"toin lessee shall allow the inco!in lessee or the lessor the "se of the pre!ises
and other !eans necessary for the preparatory labor for the followin year8 and& reciprocally& the
inco!in lessee or the lessor is "nder obliation to per!it the o"toin lessee to do whatever !ay
be necessary for the atherin or harvestin and "tili%ation of the fr"its& all in accordance with the
c"sto! of the place. (1+/3a)
Art. 1,3*. Land tenancy on shares shall be overned by special laws& the stip"lations of the parties&
the provisions on partnership and by the c"sto!s of the place. (1+/5a)
Art. 1,3+. The tenant on shares cannot be e.ected e)cept in cases specified by law. (n)
@:CT(#6 *. 1 @pecial Provisions of the Lease of ?rban Lands
Art. 1,3,. (n defa"lt of a special stip"lation& the c"sto! of the place shall be observed with reard
to the kind of repairs on "rban property for which the lessor shall be liable. (n case of do"bt it is
"nderstood that the repairs are chareable aainst hi!. (1+37a)
Art. 1,3/. (f the period for the lease has not been fi)ed& it is "nderstood to be fro! year to year& if
the rent areed "pon is ann"al8 fro! !onth to !onth& if it is !onthly8 fro! week to week& if the
rent is weekly8 and fro! day to day& if the rent is to be paid daily. 9owever& even tho"h a !onthly
rent is paid& and no period for the lease has been set& the co"rts !ay fi) a loner ter! for the lease
after the lessee has occ"pied the pre!ises for over one year. (f the rent is weekly& the co"rts !ay
likewise deter!ine a loner period after the lessee has been in possession for over si) !onths. (n
case of daily rent& the co"rts !ay also fi) a loner period after the lessee has stayed in the place for
over one !onth. (1+31a)
Art. 1,33. 2hen the lessor of a ho"se& or part thereof& "sed as a dwellin for a fa!ily& or when the
lessor of a store& or ind"strial establish!ent& also leases the f"rnit"re& the lease of the latter shall be
dee!ed to be for the d"ration of the lease of the pre!ises. (1+32)

C9APT:- '
2#-G A6D LAB#-

@:CT(#6 1. 1 9o"sehold @ervice (n)

Art. 1,35. 9o"sehold service shall always be reasonably co!pensated. Any stip"lation that
ho"sehold service is witho"t co!pensation shall be void. @"ch co!pensation shall be in addition to
the ho"se helper;s lodin& food& and !edical attendance.
Art. 1,57. The head of the fa!ily shall f"rnish& free of chare& to the ho"se helper& s"itable and
sanitary 0"arters as well as ade0"ate food and !edical attendance.
Art. 1,51. (f the ho"se helper is "nder the ae of eihteen years& the head of the fa!ily shall ive
an opport"nity to the ho"se helper for at least ele!entary ed"cation. The cost of s"ch ed"cation
shall be a part of the ho"se helper;s co!pensation& "nless there is a stip"lation to the contrary.
Art. 1,52. 6o contract for ho"sehold service shall last for !ore than two years. 9owever& s"ch
contract !ay be renewed fro! year to year.
Art. 1,5'. The ho"se helper;s clothes shall be s"b.ect to stip"lation. 9owever& any contract for
ho"sehold service shall be void if thereby the ho"se helper cannot afford to ac0"ire s"itable
clothin.
Art. 1,5*. The head of the fa!ily shall treat the ho"se helper in a ."st and h"!ane !anner. (n no
case shall physical violence be "sed "pon the ho"se helper.
Art. 1,5+. 9o"se helper shall not be re0"ired to work !ore than ten ho"rs a day. :very ho"se
helper shall be allowed fo"r days; vacation each !onth& with pay.
Art. 1,5,. (n case of death of the ho"se helper& the head of the fa!ily shall bear the f"neral
e)penses if the ho"se helper has no relatives in the place where the head of the fa!ily lives& with
s"fficient !eans therefor.
Art. 1,5/. (f the period for ho"sehold service is fi)ed neither the head of the fa!ily nor the ho"se
helper !ay ter!inate the contract before the e)piration of the ter!& e)cept for a ."st ca"se. (f the
ho"se helper is "n."stly dis!issed& he shall be paid the co!pensation already earned pl"s that for
fifteen days by way of inde!nity. (f the ho"se helper leaves witho"t ."stifiable reason& he shall
forfeit any salary d"e hi! and "npaid& for not e)ceedin fifteen days.
Art. 1,53. (f the d"ration of the ho"sehold service is not deter!ined either by stip"lation or by the
nat"re of the service& the head of the fa!ily or the ho"se helper !ay ive notice to p"t an end to the
service relation& accordin to the followin r"les<
(1) (f the co!pensation is paid by the day& notice !ay be iven on any day that the service shall
end at the close of the followin day8
(2) (f the co!pensation is paid by the week& notice !ay be iven& at the latest on the first b"siness
day of the week& that the service shall be ter!inated at the end of the seventh day fro! the
beinnin of the week8
(') (f the co!pensation is paid by the !onth& notice !ay be iven& at the latest& on the fifth day of
the !onth& that the service shall cease at the end of the !onth.
Art. 1,55. ?pon the e)tin"ish!ent of the service relation& the ho"se helper !ay de!and fro! the
head of the fa!ily a written state!ent on the nat"re and d"ration of the service and the efficiency
and cond"ct of the ho"se helper.

@:CT(#6 2. 1 Contract of Labor (n)

Art. 1/77. The relations between capital and labor are not !erely contract"al. They are so
i!pressed with p"blic interest that labor contracts !"st yield to the co!!on ood. Therefore& s"ch
contracts are s"b.ect to the special laws on labor "nions& collective barainin& strikes and locko"ts&
closed shop& waes& workin conditions& ho"rs of labor and si!ilar s"b.ects.
Art. 1/71. 6either capital nor labor shall act oppressively aainst the other& or i!pair the interest or
convenience of the p"blic.
Art. 1/72. (n case of do"bt& all labor leislation and all labor contracts shall be constr"ed in favor
of the safety and decent livin for the laborer.
Art. 1/7'. 6o contract which practically a!o"nts to invol"ntary servit"de& "nder any "ise
whatsoever& shall be valid.
Art. 1/7*. (n collective barainin& the labor "nion or !e!bers of the board or co!!ittee sinin
the contract shall be liable for non1f"lfill!ent thereof.
Art. 1/7+. The laborer;s waes shall be paid in leal c"rrency.
Art. 1/7,. 2ithholdin of the waes& e)cept for a debt d"e& shall not be !ade by the e!ployer.
Art. 1/7/. The laborer;s waes shall be a lien on the oods !an"fact"red or the work done.
Art. 1/73. The laborer;s waes shall not be s"b.ect to e)ec"tion or attach!ent& e)cept for debts
inc"rred for food& shelter& clothin and !edical attendance.
Art. 1/75. The e!ployer shall neither sei%e nor retain any tool or other articles belonin to the
laborer.
Art. 1/17. Dis!issal of laborers shall be s"b.ect to the s"pervision of the $overn!ent& "nder
special laws.
Art. 1/11. #wners of enterprises and other e!ployers are oblied to pay co!pensation for the
death of or in."ries to their laborers& work!en& !echanics or other e!ployees& even tho"h the
event !ay have been p"rely accidental or entirely d"e to a fort"ito"s ca"se& if the death or personal
in."ry arose o"t of and in the co"rse of the e!ploy!ent. The e!ployer is also liable for
co!pensation if the e!ployee contracts any illness or disease ca"sed by s"ch e!ploy!ent or as the
res"lt of the nat"re of the e!ploy!ent. (f the !ishap was d"e to the e!ployee;s own notorio"s
nelience& or vol"ntary act& or dr"nkenness& the e!ployer shall not be liable for co!pensation.
2hen the e!ployee;s lack of d"e care contrib"ted to his death or in."ry& the co!pensation shall be
e0"itably red"ced.
Art. 1/12. (f the death or in."ry is d"e to the nelience of a fellow worker& the latter and the
e!ployer shall be solidarily liable for co!pensation. (f a fellow worker;s intentional !alicio"s act
is the only ca"se of the death or in."ry& the e!ployer shall not be answerable& "nless it sho"ld be
shown that the latter did not e)ercise d"e dilience in the selection or s"pervision of the plaintiff;s
fellow worker.

@:CT(#6 '. 1 Contract for a Piece of 2ork

Art. 1/1'. By the contract for a piece of work the contractor binds hi!self to e)ec"te a piece of
work for the e!ployer& in consideration of a certain price or co!pensation. The contractor !ay
either e!ploy only his labor or skill& or also f"rnish the !aterial. (1+33a)
Art. 1/1*. (f the contractor arees to prod"ce the work fro! !aterial f"rnished by hi!& he shall
deliver the thin prod"ced to the e!ployer and transfer do!inion over the thin. This contract shall
be overned by the followin articles as well as by the pertinent provisions on warranty of title and
aainst hidden defects and the pay!ent of price in a contract of sale. (n)
Art. 1/1+. The contract shall e)ec"te the work in s"ch a !anner that it has the 0"alities areed
"pon and has no defects which destroy or lessen its val"e or fitness for its ordinary or stip"lated
"se. @ho"ld the work be not of s"ch 0"ality& the e!ployer !ay re0"ire that the contractor re!ove
the defect or e)ec"te another work. (f the contract fails or ref"ses to co!ply with this obliation&
the e!ployer !ay have the defect re!oved or another work e)ec"ted& at the contractor;s cost. (n)
Art. 1/1,. An aree!ent waivin or li!itin the contractor;s liability for any defect in the work is
void if the contractor acted fra"d"lently. (n)
Art. 1/1/. (f the contractor bo"nd hi!self to f"rnish the !aterial& he shall s"ffer the loss if the
work sho"ld be destroyed before its delivery& save when there has been delay in receivin it. (1+35)
Art. 1/13. The contractor who has "ndertaken to p"t only his work or skill& cannot clai! any
co!pensation if the work sho"ld be destroyed before its delivery& "nless there has been delay in
receivin it& or if the destr"ction was ca"sed by the poor 0"ality of the !aterial& provided this fact
was co!!"nicated in d"e ti!e to the owner. (f the !aterial is lost thro"h a fort"ito"s event& the
contract is e)tin"ished. (1+57a)
Art. 1/15. Acceptance of the work by the e!ployer relieves the contractor of liability for any
defect in the work& "nless<
(1) The defect is hidden and the e!ployer is not& by his special knowlede& e)pected to reconi%e
the sa!e8 or
(2) The e!ployer e)pressly reserves his rihts aainst the contractor by reason of the defect. (n)
Art. 1/27. The price or co!pensation shall be paid at the ti!e and place of delivery of the work&
"nless there is a stip"lation to the contrary. (f the work is to be delivered partially& the price or
co!pensation for each part havin been fi)ed& the s"! shall be paid at the ti!e and place of
delivery& in the absence if stip"lation. (n)
Art. 1/21. (f& in the e)ec"tion of the work& an act of the e!ployer is re0"ired& and he inc"rs in
delay or fails to perfor! the act& the contractor is entitled to a reasonable co!pensation.
The a!o"nt of the co!pensation is co!p"ted& on the one hand& by the d"ration of the delay and the
a!o"nt of the co!pensation stip"lated& and on the other hand& by what the contractor has saved in
e)penses by reason of the delay or is able to earn by a different e!ploy!ent of his ti!e and
ind"stry. (n)
Art. 1/22. (f the work cannot be co!pleted on acco"nt of a defect in the !aterial f"rnished by the
e!ployer& or beca"se of orders fro! the e!ployer& witho"t any fa"lt on the part of the contractor&
the latter has a riht to an e0"itable part of the co!pensation proportionally to the work done& and
rei!b"rse!ent for proper e)penses !ade. (n)
Art. 1/2'. The enineer or architect who drew "p the plans and specifications for a b"ildin is
liable for da!aes if within fifteen years fro! the co!pletion of the str"ct"re& the sa!e sho"ld
collapse by reason of a defect in those plans and specifications& or d"e to the defects in the ro"nd.
The contractor is likewise responsible for the da!aes if the edifice falls& within the sa!e period&
on acco"nt of defects in the constr"ction or the "se of !aterials of inferior 0"ality f"rnished by
hi!& or d"e to any violation of the ter!s of the contract. (f the enineer or architect s"pervises the
constr"ction& he shall be solidarily liable with the contractor.
Acceptance of the b"ildin& after co!pletion& does not i!ply waiver of any of the ca"se of action
by reason of any defect !entioned in the precedin pararaph.
The action !"st be bro"ht within ten years followin the collapse of the b"ildin. (n)
Art. 1/2*. The contractor who "ndertakes to b"ild a str"ct"re or any other work for a stip"lated
price& in confor!ity with plans and specifications areed "pon with the land1owner& can neither
withdraw fro! the contract nor de!and an increase in the price on acco"nt of the hiher cost of
labor or !aterials& save when there has been a chane in the plans and specifications& provided<
(1) @"ch chane has been a"thori%ed by the proprietor in writin8 and
(2) The additional price to be paid to the contractor has been deter!ined in writin by both parties.
(1+5'a)
Art. 1/2+. The owner !ay withdraw at will fro! the constr"ction of the work& altho"h it !ay
have been co!!enced& inde!nifyin the contractor for all the latter;s e)penses& work& and the
"sef"lness which the owner !ay obtain therefro!& and da!aes. (1+5*a)
Art. 1/2,. 2hen a piece of work has been entr"sted to a person by reason of his personal
0"alifications& the contract is rescinded "pon his death.
(n this case the proprietor shall pay the heirs of the contractor in proportion to the price areed
"pon& the val"e of the part of the work done& and of the !aterials prepared& provided the latter yield
hi! so!e benefit.
The sa!e r"le shall apply if the contractor cannot finish the work d"e to circ"!stances beyond his
control. (1+5+)
Art. 1/2/. The contractor is responsible for the work done by persons e!ployed by hi!. (1+5,)
Art. 1/23. The contractor is liable for all the clai!s of laborers and others e!ployed by hi!& and of
third persons for death or physical in."ries d"rin the constr"ction. (n)
Art. 1/25. Those who p"t their labor "pon or f"rnish !aterials for a piece of work "ndertaken by
the contractor have an action aainst the owner "p to the a!o"nt owin fro! the latter to the
contractor at the ti!e the clai! is !ade. 9owever& the followin shall not pre."dice the laborers&
e!ployees and f"rnishers of !aterials<
(1) Pay!ents !ade by the owner to the contractor before they are d"e8
(2) -en"nciation by the contractor of any a!o"nt d"e hi! fro! the owner.
This article is s"b.ect to the provisions of special laws. (1+5/a)
Art. 1/'7. (f it is areed that the work shall be acco!plished to the satisfaction of the proprietor& it
is "nderstood that in case of disaree!ent the 0"estion shall be s"b.ect to e)pert ."d!ent.
(f the work is s"b.ect to the approval of a third person& his decision shall be final& e)cept in case of
fra"d or !anifest error. (1+53a)
Art. 1/'1. 9e who has e)ec"ted work "pon a !ovable has a riht to retain it by way of plede "ntil
he is paid. (1,77)

@:CT(#6 *. 1 Co!!on Carriers (n)

@?B@:CT(#6 1. 1 $eneral Provisions

Art. 1/'2. Co!!on carriers are persons& corporations& fir!s or associations enaed in the
b"siness of carryin or transportin passeners or oods or both& by land& water& or air& for
co!pensation& offerin their services to the p"blic.
Art. 1/''. Co!!on carriers& fro! the nat"re of their b"siness and for reasons of p"blic policy& are
bo"nd to observe e)traordinary dilience in the viilance over the oods and for the safety of the
passeners transported by the!& accordin to all the circ"!stances of each case.
@"ch e)traordinary dilience in the viilance over the oods is f"rther e)pressed in Articles 1/'*&
1/'+& and 1/*+& 6os. +& ,& and /& while the e)traordinary dilience for the safety of the passeners
is f"rther set forth in Articles 1/++ and 1/+,.

@?B@:CT(#6 2. 1 >iilance #ver $oods

Art. 1/'*. Co!!on carriers are responsible for the loss& destr"ction& or deterioration of the oods&
"nless the sa!e is d"e to any of the followin ca"ses only<
(1) Alood& stor!& earth0"ake& lihtnin& or other nat"ral disaster or cala!ity8
(2) Act of the p"blic ene!y in war& whether international or civil8
(') Act of o!ission of the shipper or owner of the oods8
(*) The character of the oods or defects in the packin or in the containers8
(+) #rder or act of co!petent p"blic a"thority.
Art. 1/'+. (n all cases other than those !entioned in 6os. 1& 2& '& *& and + of the precedin article&
if the oods are lost& destroyed or deteriorated& co!!on carriers are pres"!ed to have been at fa"lt
or to have acted neliently& "nless they prove that they observed e)traordinary dilience as
re0"ired in Article 1/''.
Art. 1/',. The e)traordinary responsibility of the co!!on carrier lasts fro! the ti!e the oods are
"nconditionally placed in the possession of& and received by the carrier for transportation "ntil the
sa!e are delivered& act"ally or constr"ctively& by the carrier to the consinee& or to the person who
has a riht to receive the!& witho"t pre."dice to the provisions of Article 1/'3.
Art. 1/'/. The co!!on carrier;s d"ty to observe e)traordinary dilience over the oods re!ains in
f"ll force and effect even when they are te!porarily "nloaded or stored in transit& "nless the
shipper or owner has !ade "se of the riht of stoppae in transit".
Art. 1/'3. The e)traordinary liability of the co!!on carrier contin"es to be operative even d"rin
the ti!e the oods are stored in a wareho"se of the carrier at the place of destination& "ntil the
consinee has been advised of the arrival of the oods and has had reasonable opport"nity
thereafter to re!ove the! or otherwise dispose of the!.
Art. 1/'5. (n order that the co!!on carrier !ay be e)e!pted fro! responsibility& the nat"ral
disaster !"st have been the pro)i!ate and only ca"se of the loss. 9owever& the co!!on carrier
!"st e)ercise d"e dilience to prevent or !ini!i%e loss before& d"rin and after the occ"rrence of
flood& stor! or other nat"ral disaster in order that the co!!on carrier !ay be e)e!pted fro!
liability for the loss& destr"ction& or deterioration of the oods. The sa!e d"ty is inc"!bent "pon
the co!!on carrier in case of an act of the p"blic ene!y referred to in Article 1/'*& 6o. 2.
Art. 1/*7. (f the co!!on carrier neliently inc"rs in delay in transportin the oods& a nat"ral
disaster shall not free s"ch carrier fro! responsibility.
Art. 1/*1. (f the shipper or owner !erely contrib"ted to the loss& destr"ction or deterioration of the
oods& the pro)i!ate ca"se thereof bein the nelience of the co!!on carrier& the latter shall be
liable in da!aes& which however& shall be e0"itably red"ced.
Art. 1/*2. :ven if the loss& destr"ction& or deterioration of the oods sho"ld be ca"sed by the
character of the oods& or the fa"lty nat"re of the packin or of the containers& the co!!on carrier
!"st e)ercise d"e dilience to forestall or lessen the loss.
Art. 1/*'. (f thro"h the order of p"blic a"thority the oods are sei%ed or destroyed& the co!!on
carrier is not responsible& provided said p"blic a"thority had power to iss"e the order.
Art. 1/**. A stip"lation between the co!!on carrier and the shipper or owner li!itin the liability
of the for!er for the loss& destr"ction& or deterioration of the oods to a deree less than
e)traordinary dilience shall be valid& provided it be<
(1) (n writin& sined by the shipper or owner8
(2) @"pported by a val"able consideration other than the service rendered by the co!!on carrier8
and
(') -easonable& ."st and not contrary to p"blic policy.
Art. 1/*+. Any of the followin or si!ilar stip"lations shall be considered "nreasonable& "n."st and
contrary to p"blic policy<
(1) That the oods are transported at the risk of the owner or shipper8
(2) That the co!!on carrier will not be liable for any loss& destr"ction& or deterioration of the
oods8
(') That the co!!on carrier need not observe any dilience in the c"stody of the oods8
(*) That the co!!on carrier shall e)ercise a deree of dilience less than that of a ood father of a
fa!ily& or of a !an of ordinary pr"dence in the viilance over the !ovables transported8
(+) That the co!!on carrier shall not be responsible for the acts or o!ission of his or its
e!ployees8
(,) That the co!!on carrier;s liability for acts co!!itted by thieves& or of robbers who do not act
with rave or irresistible threat& violence or force& is dispensed with or di!inished8
(/) That the co!!on carrier is not responsible for the loss& destr"ction& or deterioration of oods on
acco"nt of the defective condition of the car& vehicle& ship& airplane or other e0"ip!ent "sed in the
contract of carriae.
Art. 1/*,. An aree!ent li!itin the co!!on carrier;s liability !ay be ann"lled by the shipper or
owner if the co!!on carrier ref"sed to carry the oods "nless the for!er areed to s"ch
stip"lation.
Art. 1/*/. (f the co!!on carrier& witho"t ."st ca"se& delays the transportation of the oods or
chanes the stip"lated or "s"al ro"te& the contract li!itin the co!!on carrier;s liability cannot be
availed of in case of the loss& destr"ction& or deterioration of the oods.
Art. 1/*3. An aree!ent li!itin the co!!on carrier;s liability for delay on acco"nt of strikes or
riots is valid.
Art. 1/*5. A stip"lation that the co!!on carrier;s liability is li!ited to the val"e of the oods
appearin in the bill of ladin& "nless the shipper or owner declares a reater val"e& is bindin.
Art. 1/+7. A contract fi)in the s"! that !ay be recovered. by the owner or shipper for the loss&
destr"ction& or deterioration of the oods is valid& if it is reasonable and ."st "nder the
circ"!stances& and has been fairly and freely areed "pon.
Art. 1/+1. The fact that the co!!on carrier has no co!petitor alon the line or ro"te& or a part
thereof& to which the contract refers shall be taken into consideration on the 0"estion of whether or
not a stip"lation li!itin the co!!on carrier;s liability is reasonable& ."st and in consonance with
p"blic policy.
Art. 1/+2. :ven when there is an aree!ent li!itin the liability of the co!!on carrier in the
viilance over the oods& the co!!on carrier is disp"tably pres"!ed to have been nelient in case
of their loss& destr"ction or deterioration.
Art. 1/+'. The law of the co"ntry to which the oods are to be transported shall overn the liability
of the co!!on carrier for their loss& destr"ction or deterioration.
Art. 1/+*. The provisions of Articles 1/'' to 1/+' shall apply to the passener;s baae which is
not in his personal c"stody or in that of his e!ployee. As to other baae& the r"les in Articles
1553 and 2777 to 277' concernin the responsibility of hotel1keepers shall be applicable.

@?B@:CT(#6 '. 1 @afety of Passeners

Art. 1/++. A co!!on carrier is bo"nd to carry the passeners safely as far as h"!an care and
foresiht can provide& "sin the "t!ost dilience of very ca"tio"s persons& with a d"e reard for all
the circ"!stances.
Art. 1/+,. (n case of death of or in."ries to passeners& co!!on carriers are pres"!ed to have been
at fa"lt or to have acted neliently& "nless they prove that they observed e)traordinary dilience as
prescribed in Articles 1/'' and 1/++.
Art. 1/+/. The responsibility of a co!!on carrier for the safety of passeners as re0"ired in
Articles 1/'' and 1/++ cannot be dispensed with or lessened by stip"lation& by the postin of
notices& by state!ents on tickets& or otherwise.
Art. 1/+3. 2hen a passener is carried rat"ito"sly& a stip"lation li!itin the co!!on carrier;s
liability for nelience is valid& b"t not for wilf"l acts or ross nelience.
The red"ction of fare does not ."stify any li!itation of the co!!on carrier;s liability.
Art. 1/+5. Co!!on carriers are liable for the death of or in."ries to passeners thro"h the
nelience or wilf"l acts of the for!er;s e!ployees& altho"h s"ch e!ployees !ay have acted
beyond the scope of their a"thority or in violation of the orders of the co!!on carriers.
This liability of the co!!on carriers does not cease "pon proof that they e)ercised all the dilience
of a ood father of a fa!ily in the selection and s"pervision of their e!ployees.
Art. 1/,7. The co!!on carrier;s responsibility prescribed in the precedin article cannot be
eli!inated or li!ited by stip"lation& by the postin of notices& by state!ents on the tickets or
otherwise.
Art. 1/,1. The passener !"st observe the dilience of a ood father of a fa!ily to avoid in."ry to
hi!self.
Art. 1/,2. The contrib"tory nelience of the passener does not bar recovery of da!aes for his
death or in."ries& if the pro)i!ate ca"se thereof is the nelience of the co!!on carrier& b"t the
a!o"nt of da!aes shall be e0"itably red"ced.
Art. 1/,'. A co!!on carrier is responsible for in."ries s"ffered by a passener on acco"nt of the
wilf"l acts or nelience of other passeners or of straners& if the co!!on carrier;s e!ployees
thro"h the e)ercise of the dilience of a ood father of a fa!ily co"ld have prevented or stopped
the act or o!ission.

@?B@:CT(#6 *. 1 Co!!on Provisions

Art. 1/,*. Da!aes in cases co!prised in this @ection shall be awarded in accordance with Title
E>((( of this Book& concernin Da!aes. Article 227, shall also apply to the death of a passener
ca"sed by the breach of contract by a co!!on carrier.
Art. 1/,+. The P"blic @ervice Co!!ission !ay& on its own !otion or on petition of any interested
party& after d"e hearin& cancel the certificate of p"blic convenience ranted to any co!!on carrier
that repeatedly fails to co!ply with his or its d"ty to observe e)traordinary dilience as prescribed
in this @ection.
Art. 1/,,. (n all !atters not re"lated by this Code& the rihts and obliations of co!!on carriers
shall be overned by the Code of Co!!erce and by special laws.

Title (E. 1 PA-T6:-@9(P

C9APT:- 1
$:6:-AL P-#>(@(#6@

Art. 1/,/. By the contract of partnership two or !ore persons bind the!selves to contrib"te
!oney& property& or ind"stry to a co!!on f"nd& with the intention of dividin the profits a!on
the!selves.
Two or !ore persons !ay also for! a partnership for the e)ercise of a profession. (1,,+a)
Art. 1/,3. The partnership has a ."dicial personality separate and distinct fro! that of each of the
partners& even in case of fail"re to co!ply with the re0"ire!ents of Article 1//2& first pararaph.
(n)
Art. 1/,5. (n deter!inin whether a partnership e)ists& these r"les shall apply<
(1) :)cept as provided by Article 132+& persons who are not partners as to each other are not
partners as to third persons8
(2) Co1ownership or co1possession does not of itself establish a partnership& whether s"ch1co1
owners or co1possessors do or do not share any profits !ade by the "se of the property8
(') The sharin of ross ret"rns does not of itself establish a partnership& whether or not the persons
sharin the! have a .oint or co!!on riht or interest in any property fro! which the ret"rns are
derived8
(*) The receipt by a person of a share of the profits of a b"siness is pri!a facie evidence that he is a
partner in the b"siness& b"t no s"ch inference shall be drawn if s"ch profits were received in
pay!ent<

(a) As a debt by install!ents or otherwise8
(b) As waes of an e!ployee or rent to a landlord8
(c) As an ann"ity to a widow or representative of a deceased partner8
(d) As interest on a loan& tho"h the a!o"nt of pay!ent vary with the profits of the b"siness8
(e) As the consideration for the sale of a oodwill of a b"siness or other property by install!ents or
otherwise. (n)
Art. 1//7. A partnership !"st have a lawf"l ob.ect or p"rpose& and !"st be established for the
co!!on benefit or interest of the partners.
2hen an "nlawf"l partnership is dissolved by a ."dicial decree& the profits shall be confiscated in
favor of the @tate& witho"t pre."dice to the provisions of the Penal Code overnin the confiscation
of the instr"!ents and effects of a cri!e. (1,,,a)
Art. 1//1. A partnership !ay be constit"ted in any for!& e)cept where i!!ovable property or real
rihts are contrib"ted thereto& in which case a p"blic instr"!ent shall be necessary. (1,,/a)
Art. 1//2. :very contract of partnership havin a capital of three tho"sand pesos or !ore& in
!oney or property& shall appear in a p"blic instr"!ent& which !"st be recorded in the #ffice of the
@ec"rities and :)chane Co!!ission.
Aail"re to co!ply with the re0"ire!ents of the precedin pararaph shall not affect the liability of
the partnership and the !e!bers thereof to third persons. (n)
Art. 1//'. A contract of partnership is void& whenever i!!ovable property is contrib"ted thereto& if
an inventory of said property is not !ade& sined by the parties& and attached to the p"blic
instr"!ent. (1,,3a)
Art. 1//*. Any i!!ovable property or an interest therein !ay be ac0"ired in the partnership na!e.
Title so ac0"ired can be conveyed only in the partnership na!e. (n)
Art. 1//+. Associations and societies& whose articles are kept secret a!on the !e!bers& and
wherein any one of the !e!bers !ay contract in his own na!e with third persons& shall have no
."ridical personality& and shall be overned by the provisions relatin to co1ownership. (1,,5)
Art. 1//,. As to its ob.ect& a partnership is either "niversal or partic"lar. As reards the liability of
the partners& a partnership !ay be eneral or li!ited. (1,/1a)
Art. 1///. A "niversal partnership !ay refer to all the present property or to all the profits. (1,/2)
Art. 1//3. A partnership of all present property is that in which the partners contrib"te all the
property which act"ally belons to the! to a co!!on f"nd& with the intention of dividin the sa!e
a!on the!selves& as well as all the profits which they !ay ac0"ire therewith. (1,/')
Art. 1//5. (n a "niversal partnership of all present property& the property which belons to each of
the partners at the ti!e of the constit"tion of the partnership& beco!es the co!!on property of all
the partners& as well as all the profits which they !ay ac0"ire therewith.
A stip"lation for the co!!on en.oy!ent of any other profits !ay also be !ade8 b"t the property
which the partners !ay ac0"ire s"bse0"ently by inheritance& leacy& or donation cannot be
incl"ded in s"ch stip"lation& e)cept the fr"its thereof. (1,/*a)
Art. 1/37. A "niversal partnership of profits co!prises all that the partners !ay ac0"ire by their
ind"stry or work d"rin the e)istence of the partnership.
=ovable or i!!ovable property which each of the partners !ay possess at the ti!e of the
celebration of the contract shall contin"e to pertain e)cl"sively to each& only the "s"fr"ct passin to
the partnership. (1,/+)
Art. 1/31. Articles of "niversal partnership& entered into witho"t specification of its nat"re& only
constit"te a "niversal partnership of profits. (1,/,)
Art. 1/32. Persons who are prohibited fro! ivin each other any donation or advantae cannot
enter into "niversal partnership. (1,//)
Art. 1/3'. A partic"lar partnership has for its ob.ect deter!inate thins& their "se or fr"its& or
specific "ndertakin& or the e)ercise of a profession or vocation. (1,/3)

C9APT:- 2
#BL($AT(#6@ #A T9: PA-T6:-@

@:CT(#6 1. 1 #bliations of the Partners A!on The!selves

Art. 1/3*. A partnership beins fro! the !o!ent of the e)ec"tion of the contract& "nless it is
otherwise stip"lated. (1,/5)
Art. 1/3+. 2hen a partnership for a fi)ed ter! or partic"lar "ndertakin is contin"ed after the
ter!ination of s"ch ter! or partic"lar "ndertakin witho"t any e)press aree!ent& the rihts and
d"ties of the partners re!ain the sa!e as they were at s"ch ter!ination& so far as is consistent with
a partnership at will.
A contin"ation of the b"siness by the partners or s"ch of the! as habit"ally acted therein d"rin the
ter!& witho"t any settle!ent or li0"idation of the partnership affairs& is pri!a facie evidence of a
contin"ation of the partnership. (n)
Art. 1/3,. :very partner is a debtor of the partnership for whatever he !ay have pro!ised to
contrib"te thereto.
9e shall also be bo"nd for warranty in case of eviction with reard to specific and deter!inate
thins which he !ay have contrib"ted to the partnership& in the sa!e cases and in the sa!e !anner
as the vendor is bo"nd with respect to the vendee. 9e shall also be liable for the fr"its thereof fro!
the ti!e they sho"ld have been delivered& witho"t the need of any de!and. (1,31a)
Art. 1/3/. 2hen the capital or a part thereof which a partner is bo"nd to contrib"te consists of
oods& their appraisal !"st be !ade in the !anner prescribed in the contract of partnership& and in
the absence of stip"lation& it shall be !ade by e)perts chosen by the partners& and accordin to
c"rrent prices& the s"bse0"ent chanes thereof bein for acco"nt of the partnership. (n)
Art. 1/33. A partner who has "ndertaken to contrib"te a s"! of !oney and fails to do so beco!es a
debtor for the interest and da!aes fro! the ti!e he sho"ld have co!plied with his obliation.
The sa!e r"le applies to any a!o"nt he !ay have taken fro! the partnership coffers& and his
liability shall bein fro! the ti!e he converted the a!o"nt to his own "se. (1,32)
Art. 1/35. An ind"strial partner cannot enae in b"siness for hi!self& "nless the partnership
e)pressly per!its hi! to do so8 and if he sho"ld do so& the capitalist partners !ay either e)cl"de
hi! fro! the fir! or avail the!selves of the benefits which he !ay have obtained in violation of
this provision& with a riht to da!aes in either case. (n)
Art. 1/57. ?nless there is a stip"lation to the contrary& the partners shall contrib"te e0"al shares to
the capital of the partnership. (n)
Art. 1/51. (f there is no aree!ent to the contrary& in case of an i!!inent loss of the b"siness of
the partnership& any partner who ref"ses to contrib"te an additional share to the capital& e)cept an
ind"strial partner& to save the vent"re& shall he oblied to sell his interest to the other partners. (n)
Art. 1/52. (f a partner a"thori%ed to !anae collects a de!andable s"! which was owed to hi! in
his own na!e& fro! a person who owed the partnership another s"! also de!andable& the s"! th"s
collected shall be applied to the two credits in proportion to their a!o"nts& even tho"h he !ay
have iven a receipt for his own credit only8 b"t sho"ld he have iven it for the acco"nt of the
partnership credit& the a!o"nt shall be f"lly applied to the latter.
The provisions of this article are "nderstood to be witho"t pre."dice to the riht ranted to the other
debtor by Article 12+2& b"t only if the personal credit of the partner sho"ld be !ore onero"s to hi!.
(1,3*)
Art. 1/5'. A partner who has received& in whole or in part& his share of a partnership credit& when
the other partners have not collected theirs& shall be oblied& if the debtor sho"ld thereafter beco!e
insolvent& to brin to the partnership capital what he received even tho"h he !ay have iven
receipt for his share only. (1,3+a)
Art. 1/5*. :very partner is responsible to the partnership for da!aes s"ffered by it thro"h his
fa"lt& and he cannot co!pensate the! with the profits and benefits which he !ay have earned for
the partnership by his ind"stry. 9owever& the co"rts !ay e0"itably lessen this responsibility if
thro"h the partner;s e)traordinary efforts in other activities of the partnership& "n"s"al profits have
been reali%ed. (1,3,a)
Art. 1/5+. The risk of specific and deter!inate thins& which are not f"nible& contrib"ted to the
partnership so that only their "se and fr"its !ay be for the co!!on benefit& shall be borne by the
partner who owns the!.
(f the thins contrib"te are f"nible& or cannot be kept witho"t deterioratin& or if they were
contrib"ted to be sold& the risk shall be borne by the partnership. (n the absence of stip"lation& the
risk of the thins bro"ht and appraised in the inventory& shall also be borne by the partnership& and
in s"ch case the clai! shall be li!ited to the val"e at which they were appraised. (1,3/)
Art. 1/5,. The partnership shall be responsible to every partner for the a!o"nts he !ay have
disb"rsed on behalf of the partnership and for the correspondin interest& fro! the ti!e the e)pense
are !ade8 it shall also answer to each partner for the obliations he !ay have contracted in ood
faith in the interest of the partnership b"siness& and for risks in conse0"ence of its !anae!ent.
(1,33a)
Art. 1/5/. The losses and profits shall be distrib"ted in confor!ity with the aree!ent. (f only the
share of each partner in the profits has been areed "pon& the share of each in the losses shall be in
the sa!e proportion.
(n the absence of stip"lation& the share of each partner in the profits and losses shall be in
proportion to what he !ay have contrib"ted& b"t the ind"strial partner shall not be liable for the
losses. As for the profits& the ind"strial partner shall receive s"ch share as !ay be ."st and e0"itable
"nder the circ"!stances. (f besides his services he has contrib"ted capital& he shall also receive a
share in the profits in proportion to his capital. (1,35a)
Art. 1/53. (f the partners have areed to intr"st to a third person the desination of the share of
each one in the profits and losses& s"ch desination !ay be i!p"ned only when it is !anifestly
ine0"itable. (n no case !ay a partner who has be"n to e)ec"te the decision of the third person& or
who has not i!p"ned the sa!e within a period of three !onths fro! the ti!e he had knowlede
thereof& co!plain of s"ch decision.
The desination of losses and profits cannot be intr"sted to one of the partners. (1,57)
Art. 1/55. A stip"lation which e)cl"des one or !ore partners fro! any share in the profits or losses
is void. (1,51)
Art. 1377. The partner who has been appointed !anaer in the articles of partnership !ay e)ec"te
all acts of ad!inistration despite the opposition of his partners& "nless he sho"ld act in bad faith8
and his power is irrevocable witho"t ."st or lawf"l ca"se. The vote of the partners representin the
controllin interest shall be necessary for s"ch revocation of power.
A power ranted after the partnership has been constit"ted !ay be revoked at any ti!e. (1,52a)
Art. 1371. (f two or !ore partners have been intr"sted with the !anae!ent of the partnership
witho"t specification of their respective d"ties& or witho"t a stip"lation that one of the! shall not
act witho"t the consent of all the others& each one !ay separately e)ec"te all acts of ad!inistration&
b"t if any of the! sho"ld oppose the acts of the others& the decision of the !a.ority shall prevail. (n
case of a tie& the !atter shall be decided by the partners ownin the controllin interest. (1,5'a)
Art. 1372. (n case it sho"ld have been stip"lated that none of the !anain partners shall act
witho"t the consent of the others& the conc"rrence of all shall be necessary for the validity of the
acts& and the absence or disability of any one of the! cannot be alleed& "nless there is i!!inent
daner of rave or irreparable in."ry to the partnership. (1,5*)
Art. 137'. 2hen the !anner of !anae!ent has not been areed "pon& the followin r"les shall be
observed<
(1) All the partners shall be considered aents and whatever any one of the! !ay do alone shall
bind the partnership& witho"t pre."dice to the provisions of Article 1371.
(2) 6one of the partners !ay& witho"t the consent of the others& !ake any i!portant alteration in
the i!!ovable property of the partnership& even if it !ay be "sef"l to the partnership. B"t if the
ref"sal of consent by the other partners is !anifestly pre."dicial to the interest of the partnership&
the co"rt;s intervention !ay be so"ht. (1,5+a)
Art. 137*. :very partner !ay associate another person with hi! in his share& b"t the associate shall
not be ad!itted into the partnership witho"t the consent of all the other partners& even if the partner
havin an associate sho"ld be a !anaer. (1,5,)
Art. 137+. The partnership books shall be kept& s"b.ect to any aree!ent between the partners& at
the principal place of b"siness of the partnership& and every partner shall at any reasonable ho"r
have access to and !ay inspect and copy any of the!. (n)
Art. 137,. Partners shall render on de!and tr"e and f"ll infor!ation of all thins affectin the
partnership to any partner or the leal representative of any deceased partner or of any partner
"nder leal disability. (n)
Art. 137/. :very partner !"st acco"nt to the partnership for any benefit& and hold as tr"stee for it
any profits derived by hi! witho"t the consent of the other partners fro! any transaction connected
with the for!ation& cond"ct& or li0"idation of the partnership or fro! any "se by hi! of its
property. (n)
Art. 1373. The capitalist partners cannot enae for their own acco"nt in any operation which is of
the kind of b"siness in which the partnership is enaed& "nless there is a stip"lation to the
contrary.
Any capitalist partner violatin this prohibition shall brin to the co!!on f"nds any profits
accr"in to hi! fro! his transactions& and shall personally bear all the losses. (n)
Art. 1375. Any partner shall have the riht to a for!al acco"nt as to partnership affairs<
(1) (f he is wronf"lly e)cl"ded fro! the partnership b"siness or possession of its property by his
co1partners8
(2) (f the riht e)ists "nder the ter!s of any aree!ent8
(') As provided by article 137/8
(*) 2henever other circ"!stances render it ."st and reasonable. (n)
@:CT(#6 2. 1 Property -ihts of a Partner

Art. 1317. The property rihts of a partner are<
(1) 9is rihts in specific partnership property8
(2) 9is interest in the partnership8 and
(') 9is riht to participate in the !anae!ent. (n)
Art. 1311. A partner is co1owner with his partners of specific partnership property.
The incidents of this co1ownership are s"ch that<
(1) A partner& s"b.ect to the provisions of this Title and to any aree!ent between the partners& has
an e0"al riht with his partners to possess specific partnership property for partnership p"rposes8
b"t he has no riht to possess s"ch property for any other p"rpose witho"t the consent of his
partners8
(2) A partner;s riht in specific partnership property is not assinable e)cept in connection with the
assin!ent of rihts of all the partners in the sa!e property8
(') A partner;s riht in specific partnership property is not s"b.ect to attach!ent or e)ec"tion&
e)cept on a clai! aainst the partnership. 2hen partnership property is attached for a partnership
debt the partners& or any of the!& or the representatives of a deceased partner& cannot clai! any
riht "nder the ho!estead or e)e!ption laws8
(*) A partner;s riht in specific partnership property is not s"b.ect to leal s"pport "nder Article
251. (n)
Art. 1312. A partner;s interest in the partnership is his share of the profits and s"rpl"s. (n)
Art. 131'. A conveyance by a partner of his whole interest in the partnership does not of itself
dissolve the partnership& or& as aainst the other partners in the absence of aree!ent& entitle the
assinee& d"rin the contin"ance of the partnership& to interfere in the !anae!ent or
ad!inistration of the partnership b"siness or affairs& or to re0"ire any infor!ation or acco"nt of
partnership transactions& or to inspect the partnership books8 b"t it !erely entitles the assinee to
receive in accordance with his contract the profits to which the assinin partner wo"ld otherwise
be entitled. 9owever& in case of fra"d in the !anae!ent of the partnership& the assinee !ay avail
hi!self of the "s"al re!edies.
(n case of a dissol"tion of the partnership& the assinee is entitled to receive his assinor;s interest
and !ay re0"ire an acco"nt fro! the date only of the last acco"nt areed to by all the partners. (n)
Art. 131*. 2itho"t pre."dice to the preferred rihts of partnership creditors "nder Article 132/& on
d"e application to a co!petent co"rt by any ."d!ent creditor of a partner& the co"rt which entered
the ."d!ent& or any other co"rt& !ay chare the interest of the debtor partner with pay!ent of the
"nsatisfied a!o"nt of s"ch ."d!ent debt with interest thereon8 and !ay then or later appoint a
receiver of his share of the profits& and of any other !oney d"e or to fall d"e to hi! in respect of
the partnership& and !ake all other orders& directions& acco"nts and in0"iries which the debtor
partner !iht have !ade& or which the circ"!stances of the case !ay re0"ire.
The interest chared !ay be redee!ed at any ti!e before foreclos"re& or in case of a sale bein
directed by the co"rt& !ay be p"rchased witho"t thereby ca"sin a dissol"tion<
(1) 2ith separate property& by any one or !ore of the partners8 or
(2) 2ith partnership property& by any one or !ore of the partners with the consent of all the
partners whose interests are not so chared or sold.
6othin in this Title shall be held to deprive a partner of his riht& if any& "nder the e)e!ption laws&
as reards his interest in the partnership. (n)

@:CT(#6 '. 1 #bliations of the Partners
2ith -eard to Third Persons

Art. 131+. :very partnership shall operate "nder a fir! na!e& which !ay or !ay not incl"de the
na!e of one or !ore of the partners.
Those who& not bein !e!bers of the partnership& incl"de their na!es in the fir! na!e& shall be
s"b.ect to the liability of a partner. (n)
Art. 131,. All partners& incl"din ind"strial ones& shall be liable pro rata with all their property and
after all the partnership assets have been e)ha"sted& for the contracts which !ay be entered into in
the na!e and for the acco"nt of the partnership& "nder its sinat"re and by a person a"thori%ed to
act for the partnership. 9owever& any partner !ay enter into a separate obliation to perfor! a
partnership contract. (n)
Art. 131/. Any stip"lation aainst the liability laid down in the precedin article shall be void&
e)cept as a!on the partners. (n)
Art. 1313. :very partner is an aent of the partnership for the p"rpose of its b"siness& and the act of
every partner& incl"din the e)ec"tion in the partnership na!e of any instr"!ent& for apparently
carryin on in the "s"al way the b"siness of the partnership of which he is a !e!ber binds the
partnership& "nless the partner so actin has in fact no a"thority to act for the partnership in the
partic"lar !atter& and the person with who! he is dealin has knowlede of the fact that he has no
s"ch a"thority.
An act of a partner which is not apparently for the carryin on of b"siness of the partnership in the
"s"al way does not bind the partnership "nless a"thori%ed by the other partners.
:)cept when a"thori%ed by the other partners or "nless they have abandoned the b"siness& one or
!ore b"t less than all the partners have no a"thority to<
(1) Assin the partnership property in tr"st for creditors or on the assinee;s pro!ise to pay the
debts of the partnership8
(2) Dispose of the ood1will of the b"siness8
(') Do any other act which wo"ld !ake it i!possible to carry on the ordinary b"siness of a
partnership8
(*) Confess a ."d!ent8
(+) :nter into a co!pro!ise concernin a partnership clai! or liability8
(,) @"b!it a partnership clai! or liability to arbitration8
(/) -eno"nce a clai! of the partnership.
6o act of a partner in contravention of a restriction on a"thority shall bind the partnership to
persons havin knowlede of the restriction. (n)
Art. 1315. 2here title to real property is in the partnership na!e& any partner !ay convey title to
s"ch property by a conveyance e)ec"ted in the partnership na!e8 b"t the partnership !ay recover
s"ch property "nless the partner;s act binds the partnership "nder the provisions of the first
pararaph of article 1313& or "nless s"ch property has been conveyed by the rantee or a person
clai!in thro"h s"ch rantee to a holder for val"e witho"t knowlede that the partner& in !akin
the conveyance& has e)ceeded his a"thority.
2here title to real property is in the na!e of the partnership& a conveyance e)ec"ted by a partner&
in his own na!e& passes the e0"itable interest of the partnership& provided the act is one within the
a"thority of the partner "nder the provisions of the first pararaph of Article 1313.
2here title to real property is in the na!e of one or !ore b"t not all the partners& and the record
does not disclose the riht of the partnership& the partners in whose na!e the title stands !ay
convey title to s"ch property& b"t the partnership !ay recover s"ch property if the partners; act does
not bind the partnership "nder the provisions of the first pararaph of Article 1313& "nless the
p"rchaser or his assinee& is a holder for val"e& witho"t knowlede.
2here the title to real property is in the na!e of one or !ore or all the partners& or in a third person
in tr"st for the partnership& a conveyance e)ec"ted by a partner in the partnership na!e& or in his
own na!e& passes the e0"itable interest of the partnership& provided the act is one within the
a"thority of the partner "nder the provisions of the first pararaph of Article 1313.
2here the title to real property is in the na!e of all the partners a conveyance e)ec"ted by all the
partners passes all their rihts in s"ch property. (n)
Art. 1327. An ad!ission or representation !ade by any partner concernin partnership affairs
within the scope of his a"thority in accordance with this Title is evidence aainst the partnership.
(n)
Art. 1321. 6otice to any partner of any !atter relatin to partnership affairs& and the knowlede of
the partner actin in the partic"lar !atter& ac0"ired while a partner or then present to his !ind& and
the knowlede of any other partner who reasonably co"ld and sho"ld have co!!"nicated it to the
actin partner& operate as notice to or knowlede of the partnership& e)cept in the case of fra"d on
the partnership& co!!itted by or with the consent of that partner. (n)
Art. 1322. 2here& by any wronf"l act or o!ission of any partner actin in the ordinary co"rse of
the b"siness of the partnership or with the a"thority of co1partners& loss or in."ry is ca"sed to any
person& not bein a partner in the partnership& or any penalty is inc"rred& the partnership is liable
therefor to the sa!e e)tent as the partner so actin or o!ittin to act. (n)
Art. 132'. The partnership is bo"nd to !ake ood the loss<
(1) 2here one partner actin within the scope of his apparent a"thority receives !oney or property
of a third person and !isapplies it8 and
(2) 2here the partnership in the co"rse of its b"siness receives !oney or property of a third person
and the !oney or property so received is !isapplied by any partner while it is in the c"stody of the
partnership. (n)
Art. 132*. All partners are liable solidarily with the partnership for everythin chareable to the
partnership "nder Articles 1322 and 132'. (n)
Art. 132+. 2hen a person& by words spoken or written or by cond"ct& represents hi!self& or
consents to another representin hi! to anyone& as a partner in an e)istin partnership or with one
or !ore persons not act"al partners& he is liable to any s"ch persons to who! s"ch representation
has been !ade& who has& on the faith of s"ch representation& iven credit to the act"al or apparent
partnership& and if he has !ade s"ch representation or consented to its bein !ade in a p"blic
!anner he is liable to s"ch person& whether the representation has or has not been !ade or
co!!"nicated to s"ch person so ivin credit by or with the knowlede of the apparent partner
!akin the representation or consentin to its bein !ade<
(1) 2hen a partnership liability res"lts& he is liable as tho"h he were an act"al !e!ber of the
partnership8
(2) 2hen no partnership liability res"lts& he is liable pro rata with the other persons& if any& so
consentin to the contract or representation as to inc"r liability& otherwise separately.
2hen a person has been th"s represented to be a partner in an e)istin partnership& or with one or
!ore persons not act"al partners& he is an aent of the persons consentin to s"ch representation to
bind the! to the sa!e e)tent and in the sa!e !anner as tho"h he were a partner in fact& with
respect to persons who rely "pon the representation. 2hen all the !e!bers of the e)istin
partnership consent to the representation& a partnership act or obliation res"lts8 b"t in all other
cases it is the .oint act or obliation of the person actin and the persons consentin to the
representation. (n)
Art. 132,. A person ad!itted as a partner into an e)istin partnership is liable for all the obliations
of the partnership arisin before his ad!ission as tho"h he had been a partner when s"ch
obliations were inc"rred& e)cept that this liability shall be satisfied only o"t of partnership
property& "nless there is a stip"lation to the contrary. (n)
Art. 132/. The creditors of the partnership shall be preferred to those of each partner as reards the
partnership property. 2itho"t pre."dice to this riht& the private creditors of each partner !ay ask
the attach!ent and p"blic sale of the share of the latter in the partnership assets. (n)

C9APT:- '
D(@@#L?T(#6 A6D 2(6D(6$ ?P

Art. 1323. The dissol"tion of a partnership is the chane in the relation of the partners ca"sed by
any partner ceasin to be associated in the carryin on as distin"ished fro! the windin "p of the
b"siness. (n)
Art. 1325. #n dissol"tion the partnership is not ter!inated& b"t contin"es "ntil the windin "p of
partnership affairs is co!pleted. (n)
Art. 13'7. Dissol"tion is ca"sed<
(1) 2itho"t violation of the aree!ent between the partners<
(a) By the ter!ination of the definite ter! or partic"lar "ndertakin specified in the aree!ent8
(b) By the e)press will of any partner& who !"st act in ood faith& when no definite ter! or
partic"lar is specified8
(c) By the e)press will of all the partners who have not assined their interests or s"ffered the! to
be chared for their separate debts& either before or after the ter!ination of any specified ter! or
partic"lar "ndertakin8
(d) By the e)p"lsion of any partner fro! the b"siness bona fide in accordance with s"ch a power
conferred by the aree!ent between the partners8
(2) (n contravention of the aree!ent between the partners& where the circ"!stances do not per!it
a dissol"tion "nder any other provision of this article& by the e)press will of any partner at any
ti!e8
(') By any event which !akes it "nlawf"l for the b"siness of the partnership to be carried on or for
the !e!bers to carry it on in partnership8
(*) 2hen a specific thin which a partner had pro!ised to contrib"te to the partnership& perishes
before the delivery8 in any case by the loss of the thin& when the partner who contrib"ted it havin
reserved the ownership thereof& has only transferred to the partnership the "se or en.oy!ent of the
sa!e8 b"t the partnership shall not be dissolved by the loss of the thin when it occ"rs after the
partnership has ac0"ired the ownership thereof8
(+) By the death of any partner8
(,) By the insolvency of any partner or of the partnership8
(/) By the civil interdiction of any partner8
(3) By decree of co"rt "nder the followin article. (1/77a and 1/71a)
Art. 13'1. #n application by or for a partner the co"rt shall decree a dissol"tion whenever<
(1) A partner has been declared insane in any ."dicial proceedin or is shown to be of "nso"nd
!ind8
(2) A partner beco!es in any other way incapable of perfor!in his part of the partnership
contract8
(') A partner has been "ilty of s"ch cond"ct as tends to affect pre."dicially the carryin on of the
b"siness8
(*) A partner wilf"lly or persistently co!!its a breach of the partnership aree!ent& or otherwise
so cond"cts hi!self in !atters relatin to the partnership b"siness that it is not reasonably
practicable to carry on the b"siness in partnership with hi!8
(+) The b"siness of the partnership can only be carried on at a loss8
(,) #ther circ"!stances render a dissol"tion e0"itable.
#n the application of the p"rchaser of a partner;s interest "nder Article 131' or 131*<
(1) After the ter!ination of the specified ter! or partic"lar "ndertakin8
(2) At any ti!e if the partnership was a partnership at will when the interest was assined or when
the charin order was iss"ed. (n)
Art. 13'2. :)cept so far as !ay be necessary to wind "p partnership affairs or to co!plete
transactions be"n b"t not then finished& dissol"tion ter!inates all a"thority of any partner to act
for the partnership<
(1) 2ith respect to the partners<
(a) 2hen the dissol"tion is not by the act& insolvency or death of a partner8 or
(b) 2hen the dissol"tion is by s"ch act& insolvency or death of a partner& in cases where article
13'' so re0"ires8
(2) 2ith respect to persons not partners& as declared in article 13'*. (n)
Art. 13''. 2here the dissol"tion is ca"sed by the act& death or insolvency of a partner& each partner
is liable to his co1partners for his share of any liability created by any partner actin for the
partnership as if the partnership had not been dissolved "nless<
(1) The dissol"tion bein by act of any partner& the partner actin for the partnership had
knowlede of the dissol"tion8 or
(2) The dissol"tion bein by the death or insolvency of a partner& the partner actin for the
partnership had knowlede or notice of the death or insolvency.
Art. 13'*. After dissol"tion& a partner can bind the partnership& e)cept as provided in the third
pararaph of this article<
(1) By any act appropriate for windin "p partnership affairs or co!pletin transactions "nfinished
at dissol"tion8
(2) By any transaction which wo"ld bind the partnership if dissol"tion had not taken place&
provided the other party to the transaction<
(a) 9ad e)tended credit to the partnership prior to dissol"tion and had no knowlede or notice of
the dissol"tion8 or
(b) Tho"h he had not so e)tended credit& had nevertheless known of the partnership prior to
dissol"tion& and& havin no knowlede or notice of dissol"tion& the fact of dissol"tion had not been
advertised in a newspaper of eneral circ"lation in the place (or in each place if !ore than one) at
which the partnership b"siness was re"larly carried on.
The liability of a partner "nder the first pararaph& 6o. 2& shall be satisfied o"t of partnership assets
alone when s"ch partner had been prior to dissol"tion<
(1) ?nknown as a partner to the person with who! the contract is !ade8 and
(2) @o far "nknown and inactive in partnership affairs that the b"siness rep"tation of the
partnership co"ld not be said to have been in any deree d"e to his connection with it.
The partnership is in no case bo"nd by any act of a partner after dissol"tion<
(1) 2here the partnership is dissolved beca"se it is "nlawf"l to carry on the b"siness& "nless the act
is appropriate for windin "p partnership affairs8 or
(2) 2here the partner has beco!e insolvent8 or
(') 2here the partner has no a"thority to wind "p partnership affairs8 e)cept by a transaction with
one who<
(a) 9ad e)tended credit to the partnership prior to dissol"tion and had no knowlede or notice of
his want of a"thority8 or
(b) 9ad not e)tended credit to the partnership prior to dissol"tion& and& havin no knowlede or
notice of his want of a"thority& the fact of his want of a"thority has not been advertised in the
!anner provided for advertisin the fact of dissol"tion in the first pararaph& 6o. 2 (b).
6othin in this article shall affect the liability "nder Article 132+ of any person who& after
dissol"tion& represents hi!self or consents to another representin hi! as a partner in a partnership
enaed in carryin b"siness. (n)
Art. 13'+. The dissol"tion of the partnership does not of itself dischare the e)istin liability of any
partner.
A partner is dischared fro! any e)istin liability "pon dissol"tion of the partnership by an
aree!ent to that effect between hi!self& the partnership creditor and the person or partnership
contin"in the b"siness8 and s"ch aree!ent !ay be inferred fro! the co"rse of dealin between
the creditor havin knowlede of the dissol"tion and the person or partnership contin"in the
b"siness.
The individ"al property of a deceased partner shall be liable for all obliations of the partnership
inc"rred while he was a partner& b"t s"b.ect to the prior pay!ent of his separate debts. (n)
Art. 13',. ?nless otherwise areed& the partners who have not wronf"lly dissolved the partnership
or the leal representative of the last s"rvivin partner& not insolvent& has the riht to wind "p the
partnership affairs& provided& however& that any partner& his leal representative or his assinee&
"pon ca"se shown& !ay obtain windin "p by the co"rt. (n)
Art. 13'/. 2hen dissol"tion is ca"sed in any way& e)cept in contravention of the partnership
aree!ent& each partner& as aainst his co1partners and all persons clai!in thro"h the! in respect
of their interests in the partnership& "nless otherwise areed& !ay have the partnership property
applied to dischare its liabilities& and the s"rpl"s applied to pay in cash the net a!o"nt owin to
the respective partners. B"t if dissol"tion is ca"sed by e)p"lsion of a partner& bona fide "nder the
partnership aree!ent and if the e)pelled partner is dischared fro! all partnership liabilities&
either by pay!ent or aree!ent "nder the second pararaph of Article 13'+& he shall receive in
cash only the net a!o"nt d"e hi! fro! the partnership.
2hen dissol"tion is ca"sed in contravention of the partnership aree!ent the rihts of the partners
shall be as follows<
(1) :ach partner who has not ca"sed dissol"tion wronf"lly shall have<

(a) All the rihts specified in the first pararaph of this article& and
(b) The riht& as aainst each partner who has ca"sed the dissol"tion wronf"lly& to da!aes breach
of the aree!ent.
(2) The partners who have not ca"sed the dissol"tion wronf"lly& if they all desire to contin"e the
b"siness in the sa!e na!e either by the!selves or .ointly with others& !ay do so& d"rin the areed
ter! for the partnership and for that p"rpose !ay possess the partnership property& provided they
sec"re the pay!ent by bond approved by the co"rt& or pay any partner who has ca"sed the
dissol"tion wronf"lly& the val"e of his interest in the partnership at the dissol"tion& less any
da!aes recoverable "nder the second pararaph& 6o. 1 (b) of this article& and in like !anner
inde!nify hi! aainst all present or f"t"re partnership liabilities.
(') A partner who has ca"sed the dissol"tion wronf"lly shall have<

(a) (f the b"siness is not contin"ed "nder the provisions of the second pararaph& 6o. 2& all the
rihts of a partner "nder the first pararaph& s"b.ect to liability for da!aes in the second
pararaph& 6o. 1 (b)& of this article.
(b) (f the b"siness is contin"ed "nder the second pararaph& 6o. 2& of this article& the riht as
aainst his co1partners and all clai!in thro"h the! in respect of their interests in the partnership&
to have the val"e of his interest in the partnership& less any da!ae ca"sed to his co1partners by the
dissol"tion& ascertained and paid to hi! in cash& or the pay!ent sec"red by a bond approved by the
co"rt& and to be released fro! all e)istin liabilities of the partnership8 b"t in ascertainin the val"e
of the partner;s interest the val"e of the ood1will of the b"siness shall not be considered. (n)
Art. 13'3. 2here a partnership contract is rescinded on the ro"nd of the fra"d or
!isrepresentation of one of the parties thereto& the party entitled to rescind is& witho"t pre."dice to
any other riht& entitled<
(1) To a lien on& or riht of retention of& the s"rpl"s of the partnership property after satisfyin the
partnership liabilities to third persons for any s"! of !oney paid by hi! for the p"rchase of an
interest in the partnership and for any capital or advances contrib"ted by hi!8
(2) To stand& after all liabilities to third persons have been satisfied& in the place of the creditors of
the partnership for any pay!ents !ade by hi! in respect of the partnership liabilities8 and
(') To be inde!nified by the person "ilty of the fra"d or !akin the representation aainst all
debts and liabilities of the partnership. (n)
Art. 13'5. (n settlin acco"nts between the partners after dissol"tion& the followin r"les shall be
observed& s"b.ect to any aree!ent to the contrary<
(1) The assets of the partnership are<

(a) The partnership property&
(b) The contrib"tions of the partners necessary for the pay!ent of all the liabilities specified in 6o.
2.
(2) The liabilities of the partnership shall rank in order of pay!ent& as follows<

(a) Those owin to creditors other than partners&
(b) Those owin to partners other than for capital and profits&
(c) Those owin to partners in respect of capital&
(d) Those owin to partners in respect of profits.
(') The assets shall be applied in the order of their declaration in 6o. 1 of this article to the
satisfaction of the liabilities.
(*) The partners shall contrib"te& as provided by article 1/5/& the a!o"nt necessary to satisfy the
liabilities.
(+) An assinee for the benefit of creditors or any person appointed by the co"rt shall have the riht
to enforce the contrib"tions specified in the precedin n"!ber.
(,) Any partner or his leal representative shall have the riht to enforce the contrib"tions specified
in 6o. *& to the e)tent of the a!o"nt which he has paid in e)cess of his share of the liability.
(/) The individ"al property of a deceased partner shall be liable for the contrib"tions specified in
6o. *.
(3) 2hen partnership property and the individ"al properties of the partners are in possession of a
co"rt for distrib"tion& partnership creditors shall have priority on partnership property and separate
creditors on individ"al property& savin the rihts of lien or sec"red creditors.
(5) 2here a partner has beco!e insolvent or his estate is insolvent& the clai!s aainst his separate
property shall rank in the followin order<

(a) Those owin to separate creditors8
(b) Those owin to partnership creditors8
(c) Those owin to partners by way of contrib"tion. (n)
Art. 13*7. (n the followin cases creditors of the dissolved partnership are also creditors of the
person or partnership contin"in the b"siness<
(1) 2hen any new partner is ad!itted into an e)istin partnership& or when any partner retires and
assins (or the representative of the deceased partner assins) his rihts in partnership property to
two or !ore of the partners& or to one or !ore of the partners and one or !ore third persons& if the
b"siness is contin"ed witho"t li0"idation of the partnership affairs8
(2) 2hen all b"t one partner retire and assin (or the representative of a deceased partner assins)
their rihts in partnership property to the re!ainin partner& who contin"es the b"siness witho"t
li0"idation of partnership affairs& either alone or with others8
(') 2hen any partner retires or dies and the b"siness of the dissolved partnership is contin"ed as
set forth in 6os. 1 and 2 of this article& with the consent of the retired partners or the representative
of the deceased partner& b"t witho"t any assin!ent of his riht in partnership property8
(*) 2hen all the partners or their representatives assin their rihts in partnership property to one
or !ore third persons who pro!ise to pay the debts and who contin"e the b"siness of the dissolved
partnership8
(+) 2hen any partner wronf"lly ca"ses a dissol"tion and the re!ainin partners contin"e the
b"siness "nder the provisions of article 13'/& second pararaph& 6o. 2& either alone or with others&
and witho"t li0"idation of the partnership affairs8
(,) 2hen a partner is e)pelled and the re!ainin partners contin"e the b"siness either alone or
with others witho"t li0"idation of the partnership affairs.
The liability of a third person beco!in a partner in the partnership contin"in the b"siness& "nder
this article& to the creditors of the dissolved partnership shall be satisfied o"t of the partnership
property only& "nless there is a stip"lation to the contrary.
2hen the b"siness of a partnership after dissol"tion is contin"ed "nder any conditions set forth in
this article the creditors of the dissolved partnership& as aainst the separate creditors of the retirin
or deceased partner or the representative of the deceased partner& have a prior riht to any clai! of
the retired partner or the representative of the deceased partner aainst the person or partnership
contin"in the b"siness& on acco"nt of the retired or deceased partner;s interest in the dissolved
partnership or on acco"nt of any consideration pro!ised for s"ch interest or for his riht in
partnership property.
6othin in this article shall be held to !odify any riht of creditors to set aside any assin!ent on
the ro"nd of fra"d.
The "se by the person or partnership contin"in the b"siness of the partnership na!e& or the na!e
of a deceased partner as part thereof& shall not of itself !ake the individ"al property of the
deceased partner liable for any debts contracted by s"ch person or partnership. (n)
Art. 13*1. 2hen any partner retires or dies& and the b"siness is contin"ed "nder any of the
conditions set forth in the precedin article& or in Article 13'/& second pararaph& 6o. 2& witho"t
any settle!ent of acco"nts as between hi! or his estate and the person or partnership contin"in
the b"siness& "nless otherwise areed& he or his leal representative as aainst s"ch person or
partnership !ay have the val"e of his interest at the date of dissol"tion ascertained& and shall
receive as an ordinary creditor an a!o"nt e0"al to the val"e of his interest in the dissolved
partnership with interest& or& at his option or at the option of his leal representative& in lie" of
interest& the profits attrib"table to the "se of his riht in the property of the dissolved partnership8
provided that the creditors of the dissolved partnership as aainst the separate creditors& or the
representative of the retired or deceased partner& shall have priority on any clai! arisin "nder this
article& as provided Article 13*7& third pararaph. (n)
Art. 13*2. The riht to an acco"nt of his interest shall accr"e to any partner& or his leal
representative as aainst the windin "p partners or the s"rvivin partners or the person or
partnership contin"in the b"siness& at the date of dissol"tion& in the absence of any aree!ent to
the contrary. (n)

C9APT:- *
L(=(T:D PA-T6:-@9(P (n)

Art. 13*'. A li!ited partnership is one for!ed by two or !ore persons "nder the provisions of the
followin article& havin as !e!bers one or !ore eneral partners and one or !ore li!ited
partners. The li!ited partners as s"ch shall not be bo"nd by the obliations of the partnership.
Art. 13**. Two or !ore persons desirin to for! a li!ited partnership shall<
(1) @in and swear to a certificate& which shall state 1

(a) The na!e of the partnership& addin thereto the word "Li!ited"8
(b) The character of the b"siness8
(c) The location of the principal place of b"siness8
(d) The na!e and place of residence of each !e!ber& eneral and li!ited partners bein
respectively desinated8
(e) The ter! for which the partnership is to e)ist8
(f) The a!o"nt of cash and a description of and the areed val"e of the other property contrib"ted
by each li!ited partner8
() The additional contrib"tions& if any& to be !ade by each li!ited partner and the ti!es at which
or events on the happenin of which they shall be !ade8
(h) The ti!e& if areed "pon& when the contrib"tion of each li!ited partner is to be ret"rned8
(i) The share of the profits or the other co!pensation by way of inco!e which each li!ited partner
shall receive by reason of his contrib"tion8
(.) The riht& if iven& of a li!ited partner to s"bstit"te an assinee as contrib"tor in his place& and
the ter!s and conditions of the s"bstit"tion8
(k) The riht& if iven& of the partners to ad!it additional li!ited partners8
(l) The riht& if iven& of one or !ore of the li!ited partners to priority over other li!ited partners&
as to contrib"tions or as to co!pensation by way of inco!e& and the nat"re of s"ch priority8
(!) The riht& if iven& of the re!ainin eneral partner or partners to contin"e the b"siness on the
death& retire!ent& civil interdiction& insanity or insolvency of a eneral partner8 and
(n) The riht& if iven& of a li!ited partner to de!and and receive property other than cash in ret"rn
for his contrib"tion.
(2) Aile for record the certificate in the #ffice of the @ec"rities and :)chane Co!!ission.
A li!ited partnership is for!ed if there has been s"bstantial co!pliance in ood faith with the
foreoin re0"ire!ents.
Art. 13*+. The contrib"tions of a li!ited partner !ay be cash or property& b"t not services.
Art. 13*,. The s"rna!e of a li!ited partner shall not appear in the partnership na!e "nless<
(1) (t is also the s"rna!e of a eneral partner& or
(2) Prior to the ti!e when the li!ited partner beca!e s"ch& the b"siness has been carried on "nder
a na!e in which his s"rna!e appeared.
A li!ited partner whose s"rna!e appears in a partnership na!e contrary to the provisions of the
first pararaph is liable as a eneral partner to partnership creditors who e)tend credit to the
partnership witho"t act"al knowlede that he is not a eneral partner.
Art. 13*/. (f the certificate contains a false state!ent& one who s"ffers loss by reliance on s"ch
state!ent !ay hold liable any party to the certificate who knew the state!ent to be false<
(1) At the ti!e he sined the certificate& or
(2) @"bse0"ently& b"t within a s"fficient ti!e before the state!ent was relied "pon to enable hi! to
cancel or a!end the certificate& or to file a petition for its cancellation or a!end!ent as provided in
Article 13,+.
Art. 13*3. A li!ited partner shall not beco!e liable as a eneral partner "nless& in addition to the
e)ercise of his rihts and powers as a li!ited partner& he takes part in the control of the b"siness.
Art. 13*5. After the for!ation of a lifted partnership& additional li!ited partners !ay be ad!itted
"pon filin an a!end!ent to the oriinal certificate in accordance with the re0"ire!ents of Article
13,+.
Art. 13+7. A eneral partner shall have all the rihts and powers and be s"b.ect to all the
restrictions and liabilities of a partner in a partnership witho"t li!ited partners. 9owever& witho"t
the written consent or ratification of the specific act by all the li!ited partners& a eneral partner or
all of the eneral partners have no a"thority to<
(1) Do any act in contravention of the certificate8
(2) Do any act which wo"ld !ake it i!possible to carry on the ordinary b"siness of the
partnership8
(') Confess a ."d!ent aainst the partnership8
(*) Possess partnership property& or assin their rihts in specific partnership property& for other
than a partnership p"rpose8
(+) Ad!it a person as a eneral partner8
(,) Ad!it a person as a li!ited partner& "nless the riht so to do is iven in the certificate8
(/) Contin"e the b"siness with partnership property on the death& retire!ent& insanity& civil
interdiction or insolvency of a eneral partner& "nless the riht so to do is iven in the certificate.
Art. 13+1. A li!ited partner shall have the sa!e rihts as a eneral partner to<
(1) 9ave the partnership books kept at the principal place of b"siness of the partnership& and at a
reasonable ho"r to inspect and copy any of the!8
(2) 9ave on de!and tr"e and f"ll infor!ation of all thins affectin the partnership& and a for!al
acco"nt of partnership affairs whenever circ"!stances render it ."st and reasonable8 and
(') 9ave dissol"tion and windin "p by decree of co"rt.
A li!ited partner shall have the riht to receive a share of the profits or other co!pensation by way
of inco!e& and to the ret"rn of his contrib"tion as provided in Articles 13+, and 13+/.
Art. 13+2. 2itho"t pre."dice to the provisions of Article 13*3& a person who has contrib"ted to the
capital of a b"siness cond"cted by a person or partnership erroneo"sly believin that he has
beco!e a li!ited partner in a li!ited partnership& is not& by reason of his e)ercise of the rihts of a
li!ited partner& a eneral partner with the person or in the partnership carryin on the b"siness& or
bo"nd by the obliations of s"ch person or partnership& provided that on ascertainin the !istake
he pro!ptly reno"nces his interest in the profits of the b"siness& or other co!pensation by way of
inco!e.
Art. 13+'. A person !ay be a eneral partner and a li!ited partner in the sa!e partnership at the
sa!e ti!e& provided that this fact shall be stated in the certificate provided for in Article 13**.
A person who is a eneral& and also at the sa!e ti!e a li!ited partner& shall have all the rihts and
powers and be s"b.ect to all the restrictions of a eneral partner8 e)cept that& in respect to his
contrib"tion& he shall have the rihts aainst the other !e!bers which he wo"ld have had if he
were not also a eneral partner.
Art. 13+*. A li!ited partner also !ay loan !oney to and transact other b"siness with the
partnership& and& "nless he is also a eneral partner& receive on acco"nt of res"ltin clai!s aainst
the partnership& with eneral creditors& a pro rata share of the assets. 6o li!ited partner shall in
respect to any s"ch clai!<
(1) -eceive or hold as collateral sec"rity and partnership property& or
(2) -eceive fro! a eneral partner or the partnership any pay!ent& conveyance& or release fro!
liability if at the ti!e the assets of the partnership are not s"fficient to dischare partnership
liabilities to persons not clai!in as eneral or li!ited partners.
The receivin of collateral sec"rity& or pay!ent& conveyance& or release in violation of the
foreoin provisions is a fra"d on the creditors of the partnership.
Art. 13++. 2here there are several li!ited partners the !e!bers !ay aree that one or !ore of the
li!ited partners shall have a priority over other li!ited partners as to the ret"rn of their
contrib"tions& as to their co!pensation by way of inco!e& or as to any other !atter. (f s"ch an
aree!ent is !ade it shall be stated in the certificate& and in the absence of s"ch a state!ent all the
li!ited partners shall stand "pon e0"al footin.
Art. 13+,. A li!ited partner !ay receive fro! the partnership the share of the profits or the
co!pensation by way of inco!e stip"lated for in the certificate8 provided that after s"ch pay!ent
is !ade& whether fro! property of the partnership or that of a eneral partner& the partnership assets
are in e)cess of all liabilities of the partnership e)cept liabilities to li!ited partners on acco"nt of
their contrib"tions and to eneral partners.
Art. 13+/. A li!ited partner shall not receive fro! a eneral partner or o"t of partnership property
any part of his contrib"tions "ntil<
(1) All liabilities of the partnership& e)cept liabilities to eneral partners and to li!ited partners on
acco"nt of their contrib"tions& have been paid or there re!ains property of the partnership
s"fficient to pay the!8
(2) The consent of all !e!bers is had& "nless the ret"rn of the contrib"tion !ay be rihtf"lly
de!anded "nder the provisions of the second pararaph8 and
(') The certificate is cancelled or so a!ended as to set forth the withdrawal or red"ction.
@"b.ect to the provisions of the first pararaph& a li!ited partner !ay rihtf"lly de!and the ret"rn
of his contrib"tion<
(1) #n the dissol"tion of a partnership8 or
(2) 2hen the date specified in the certificate for its ret"rn has arrived& or
(') After he has si) !onths; notice in writin to all other !e!bers& if no ti!e is specified in the
certificate& either for the ret"rn of the contrib"tion or for the dissol"tion of the partnership.
(n the absence of any state!ent in the certificate to the contrary or the consent of all !e!bers& a
li!ited partner& irrespective of the nat"re of his contrib"tion& has only the riht to de!and and
receive cash in ret"rn for his contrib"tion.
A li!ited partner !ay have the partnership dissolved and its affairs wo"nd "p when<
(1) 9e rihtf"lly b"t "ns"ccessf"lly de!ands the ret"rn of his contrib"tion& or
(2) The other liabilities of the partnership have not been paid& or the partnership property is
ins"fficient for their pay!ent as re0"ired by the first pararaph& 6o. 1& and the li!ited partner
wo"ld otherwise be entitled to the ret"rn of his contrib"tion.
Art. 13+3. A li!ited partner is liable to the partnership<
(1) Aor the difference between his contrib"tion as act"ally !ade and that stated in the certificate as
havin been !ade8 and
(2) Aor any "npaid contrib"tion which he areed in the certificate to !ake in the f"t"re at the ti!e
and on the conditions stated in the certificate.
A li!ited partner holds as tr"stee for the partnership<
(1) @pecific property stated in the certificate as contrib"ted by hi!& b"t which was not contrib"ted
or which has been wronf"lly ret"rned& and
(2) =oney or other property wronf"lly paid or conveyed to hi! on acco"nt of his contrib"tion.
The liabilities of a li!ited partner as set forth in this article can be waived or co!pro!ised only by
the consent of all !e!bers8 b"t a waiver or co!pro!ise shall not affect the riht of a creditor of a
partnership who e)tended credit or whose clai! arose after the filin and before a cancellation or
a!end!ent of the certificate& to enforce s"ch liabilities.
2hen a contrib"tor has rihtf"lly received the ret"rn in whole or in part of the capital of his
contrib"tion& he is nevertheless liable to the partnership for any s"!& not in e)cess of s"ch ret"rn
with interest& necessary to dischare its liabilities to all creditors who e)tended credit or whose
clai!s arose before s"ch ret"rn.
Art. 13+5. A li!ited partner;s interest is assinable.
A s"bstit"ted li!ited partner is a person ad!itted to all the rihts of a li!ited partner who has died
or has assined his interest in a partnership.
An assinee& who does not beco!e a s"bstit"ted li!ited partner& has no riht to re0"ire any
infor!ation or acco"nt of the partnership transactions or to inspect the partnership books8 he is
only entitled to receive the share of the profits or other co!pensation by way of inco!e& or the
ret"rn of his contrib"tion& to which his assinor wo"ld otherwise be entitled.
An assinee shall have the riht to beco!e a s"bstit"ted li!ited partner if all the !e!bers consent
thereto or if the assinor& bein there"nto e!powered by the certificate& ives the assinee that
riht.
An assinee beco!es a s"bstit"ted li!ited partner when the certificate is appropriately a!ended in
accordance with Article 13,+.
The s"bstit"ted li!ited partner has all the rihts and powers& and is s"b.ect to all the restrictions
and liabilities of his assinor& e)cept those liabilities of which he was inorant at the ti!e he
beca!e a li!ited partner and which co"ld not be ascertained fro! the certificate.
The s"bstit"tion of the assinee as a li!ited partner does not release the assinor fro! liability to
the partnership "nder Articles 13*/ and 13*3.
Art. 13,7. The retire!ent& death& insolvency& insanity or civil interdiction of a eneral partner
dissolves the partnership& "nless the b"siness is contin"ed by the re!ainin eneral partners<
(1) ?nder a riht so to do stated in the certificate& or
(2) 2ith the consent of all !e!bers.
Art. 13,1. #n the death of a li!ited partner his e)ec"tor or ad!inistrator shall have all the rihts of
a li!ited partner for the p"rpose of settin his estate& and s"ch power as the deceased had to
constit"te his assinee a s"bstit"ted li!ited partner.
The estate of a deceased li!ited partner shall be liable for all his liabilities as a li!ited partner.
Art. 13,2. #n d"e application to a co"rt of co!petent ."risdiction by any creditor of a li!ited
partner& the co"rt !ay chare the interest of the indebted li!ited partner with pay!ent of the
"nsatisfied a!o"nt of s"ch clai!& and !ay appoint a receiver& and !ake all other orders& directions
and in0"iries which the circ"!stances of the case !ay re0"ire.
The interest !ay be redee!ed with the separate property of any eneral partner& b"t !ay not be
redee!ed with partnership property.
The re!edies conferred by the first pararaph shall not be dee!ed e)cl"sive of others which !ay
e)ist.
6othin in this Chapter shall be held to deprive a li!ited partner of his stat"tory e)e!ption.
Art. 13,'. (n settin acco"nts after dissol"tion the liabilities of the partnership shall be entitled to
pay!ent in the followin order<
(1) Those to creditors& in the order of priority as provided by law& e)cept those to li!ited partners
on acco"nt of their contrib"tions& and to eneral partners8
(2) Those to li!ited partners in respect to their share of the profits and other co!pensation by way
of inco!e on their contrib"tions8
(') Those to li!ited partners in respect to the capital of their contrib"tions8
(*) Those to eneral partners other than for capital and profits8
(+) Those to eneral partners in respect to profits8
(,) Those to eneral partners in respect to capital.
@"b.ect to any state!ent in the certificate or to s"bse0"ent aree!ent& li!ited partners share in the
partnership assets in respect to their clai!s for capital& and in respect to their clai!s for profits or
for co!pensation by way of inco!e on their contrib"tion respectively& in proportion to the
respective a!o"nts of s"ch clai!s.
Art. 13,*. The certificate shall be cancelled when the partnership is dissolved or all li!ited
partners cease to be s"ch.
A certificate shall be a!ended when<
(1) There is a chane in the na!e of the partnership or in the a!o"nt or character of the
contrib"tion of any li!ited partner8
(2) A person is s"bstit"ted as a li!ited partner8
(') An additional li!ited partner is ad!itted8
(*) A person is ad!itted as a eneral partner8
(+) A eneral partner retires& dies& beco!es insolvent or insane& or is sentenced to civil interdiction
and the b"siness is contin"ed "nder Article 13,78
(,) There is a chane in the character of the b"siness of the partnership8
(/) There is a false or erroneo"s state!ent in the certificate8
(3) There is a chane in the ti!e as stated in the certificate for the dissol"tion of the partnership or
for the ret"rn of a contrib"tion8
(5) A ti!e is fi)ed for the dissol"tion of the partnership& or the ret"rn of a contrib"tion& no ti!e
havin been specified in the certificate& or
(17) The !e!bers desire to !ake a chane in any other state!ent in the certificate in order that it
shall acc"rately represent the aree!ent a!on the!.
Art. 13,+. The writin to a!end a certificate shall<
(1) Confor! to the re0"ire!ents of Article 13** as far as necessary to set forth clearly the chane
in the certificate which it is desired to !ake8 and
(2) Be sined and sworn to by all !e!bers& and an a!end!ent s"bstit"tin a li!ited partner or
addin a li!ited or eneral partner shall be sined also by the !e!ber to be s"bstit"ted or added&
and when a li!ited partner is to be s"bstit"ted& the a!end!ent shall also be sined by the assinin
li!ited partner.
The writin to cancel a certificate shall be sined by all !e!bers.
A person desirin the cancellation or a!end!ent of a certificate& if any person desinated in the
first and second pararaphs as a person who !"st e)ec"te the writin ref"ses to do so& !ay petition
the co"rt to order a cancellation or a!end!ent thereof.
(f the co"rt finds that the petitioner has a riht to have the writin e)ec"ted by a person who
ref"ses to do so& it shall order the #ffice of the @ec"rities and :)chane Co!!ission where the
certificate is recorded& to record the cancellation or a!end!ent of the certificate8 and when the
certificate is to be a!ended& the co"rt shall also ca"se to be filed for record in said office a certified
copy of its decree settin forth the a!end!ent.
A certificate is a!ended or cancelled when there is filed for record in the #ffice of the @ec"rities
and :)chane Co!!ission& where the certificate is recorded<
(1) A writin in accordance with the provisions of the first or second pararaph& or
(2) A certified copy of the order of the co"rt in accordance with the provisions of the fo"rth
pararaph8
(') After the certificate is d"ly a!ended in accordance with this article& the a!ended certified shall
thereafter be for all p"rposes the certificate provided for in this Chapter.
Art. 13,,. A contrib"tor& "nless he is a eneral partner& is not a proper party to proceedins by or
aainst a partnership& e)cept where the ob.ect is to enforce a li!ited partner;s riht aainst or
liability to the partnership.
Art. 13,/. A li!ited partnership for!ed "nder the law prior to the effectivity of this Code& !ay
beco!e a li!ited partnership "nder this Chapter by co!plyin with the provisions of Article 13**&
provided the certificate sets forth<
(1) The a!o"nt of the oriinal contrib"tion of each li!ited partner& and the ti!e when the
contrib"tion was !ade8 and
(2) That the property of the partnership e)ceeds the a!o"nt s"fficient to dischare its liabilities to
persons not clai!in as eneral or li!ited partners by an a!o"nt reater than the s"! of the
contrib"tions of its li!ited partners.
A li!ited partnership for!ed "nder the law prior to the effectivity of this Code& "ntil or "nless it
beco!es a li!ited partnership "nder this Chapter& shall contin"e to be overned by the provisions
of the old law.

Title E. 1 A$:6CF

C9APT:- 1
6AT?-:& A#-= A6D G(6D@ #A A$:6CF

Art. 13,3. By the contract of aency a person binds hi!self to render so!e service or to do
so!ethin in representation or on behalf of another& with the consent or a"thority of the latter.
(1/75a)
Art. 13,5. Aency !ay be e)press& or i!plied fro! the acts of the principal& fro! his silence or
lack of action& or his fail"re to rep"diate the aency& knowin that another person is actin on his
behalf witho"t a"thority.
Aency !ay be oral& "nless the law re0"ires a specific for!. (1/17a)
Art. 13/7. Acceptance by the aent !ay also be e)press& or i!plied fro! his acts which carry o"t
the aency& or fro! his silence or inaction accordin to the circ"!stances. (n)
Art. 13/1. Between persons who are present& the acceptance of the aency !ay also be i!plied if
the principal delivers his power of attorney to the aent and the latter receives it witho"t any
ob.ection. (n)
Art. 13/2. Between persons who are absent& the acceptance of the aency cannot be i!plied fro!
the silence of the aent& e)cept<
(1) 2hen the principal trans!its his power of attorney to the aent& who receives it witho"t any
ob.ection8
(2) 2hen the principal entr"sts to hi! by letter or telera! a power of attorney with respect to the
b"siness in which he is habit"ally enaed as an aent& and he did not reply to the letter or
telera!. (n)
Art. 13/'. (f a person specially infor!s another or states by p"blic advertise!ent that he has iven
a power of attorney to a third person& the latter thereby beco!es a d"ly a"thori%ed aent& in the
for!er case with respect to the person who received the special infor!ation& and in the latter case
with reard to any person.
The power shall contin"e to be in f"ll force "ntil the notice is rescinded in the sa!e !anner in
which it was iven. (n)
Art. 13/*. 2hen a sale of a piece of land or any interest therein is thro"h an aent& the a"thority
of the latter shall be in writin8 otherwise& the sale shall be void. (n)
Art. 13/+. Aency is pres"!ed to be for a co!pensation& "nless there is proof to the contrary. (n)
Art. 13/,. An aency is either eneral or special.
The for!er co!prises all the b"siness of the principal. The latter& one or !ore specific transactions.
(1/12)
Art. 13//. An aency co"ched in eneral ter!s co!prises only acts of ad!inistration& even if the
principal sho"ld state that he withholds no power or that the aent !ay e)ec"te s"ch acts as he !ay
consider appropriate& or even tho"h the aency sho"ld a"thori%e a eneral and "nli!ited
!anae!ent. (n)
Art. 13/3. @pecial powers of attorney are necessary in the followin cases<
(1) To !ake s"ch pay!ents as are not "s"ally considered as acts of ad!inistration8
(2) To effect novations which p"t an end to obliations already in e)istence at the ti!e the aency
was constit"ted8
(') To co!pro!ise& to s"b!it 0"estions to arbitration& to reno"nce the riht to appeal fro! a
."d!ent& to waive ob.ections to the ven"e of an action or to abandon a prescription already
ac0"ired8
(*) To waive any obliation rat"ito"sly8
(+) To enter into any contract by which the ownership of an i!!ovable is trans!itted or ac0"ired
either rat"ito"sly or for a val"able consideration8
(,) To !ake ifts& e)cept c"sto!ary ones for charity or those !ade to e!ployees in the b"siness
!anaed by the aent8
(/) To loan or borrow !oney& "nless the latter act be "rent and indispensable for the preservation
of the thins which are "nder ad!inistration8
(3) To lease any real property to another person for !ore than one year8
(5) To bind the principal to render so!e service witho"t co!pensation8
(17) To bind the principal in a contract of partnership8
(11) To obliate the principal as a "arantor or s"rety8
(12) To create or convey real rihts over i!!ovable property8
(1') To accept or rep"diate an inheritance8
(1*) To ratify or reconi%e obliations contracted before the aency8
(1+) Any other act of strict do!inion. (n)
Art. 13/5. A special power to sell e)cl"des the power to !ortae8 and a special power to
!ortae does not incl"de the power to sell. (n)
Art. 1337. A special power to co!pro!ise does not a"thori%e s"b!ission to arbitration. (1/1'a)
Art. 1331. The aent !"st act within the scope of his a"thority. 9e !ay do s"ch acts as !ay be
cond"cive to the acco!plish!ent of the p"rpose of the aency. (1/1*a)
Art. 1332. The li!its of the aent;s a"thority shall not be considered e)ceeded sho"ld it have been
perfor!ed in a !anner !ore advantaeo"s to the principal than that specified by hi!. (1/1+)
Art. 133'. (f an aent acts in his own na!e& the principal has no riht of action aainst the persons
with who! the aent has contracted8 neither have s"ch persons aainst the principal.
(n s"ch case the aent is the one directly bo"nd in favor of the person with who! he has
contracted& as if the transaction were his own& e)cept when the contract involves thins belonin
to the principal.
The provisions of this article shall be "nderstood to be witho"t pre."dice to the actions between the
principal and aent. (1/1/)

C9APT:- 2
#BL($AT(#6@ #A T9: A$:6T

Art. 133*. The aent is bo"nd by his acceptance to carry o"t the aency& and is liable for the
da!aes which& thro"h his non1perfor!ance& the principal !ay s"ffer.
9e !"st also finish the b"siness already be"n on the death of the principal& sho"ld delay entail
any daner. (1/13)
Art. 133+. (n case a person declines an aency& he is bo"nd to observe the dilience of a ood
father of a fa!ily in the c"stody and preservation of the oods forwarded to hi! by the owner "ntil
the latter sho"ld appoint an aent or take chare of the oods. (n)
Art. 133,. @ho"ld there be a stip"lation that the aent shall advance the necessary f"nds& he shall
be bo"nd to do so e)cept when the principal is insolvent. (n)
Art. 133/. (n the e)ec"tion of the aency& the aent shall act in accordance with the instr"ctions of
the principal.
(n defa"lt thereof& he shall do all that a ood father of a fa!ily wo"ld do& as re0"ired by the nat"re
of the b"siness. (1/15)
Art. 1333. An aent shall not carry o"t an aency if its e)ec"tion wo"ld !anifestly res"lt in loss or
da!ae to the principal. (n)
Art. 1335. The aent shall be liable for da!aes if& there bein a conflict between his interests and
those of the principal& he sho"ld prefer his own. (n)
Art. 1357. (f the aent has been e!powered to borrow !oney& he !ay hi!self be the lender at the
c"rrent rate of interest. (f he has been a"thori%ed to lend !oney at interest& he cannot borrow it
witho"t the consent of the principal. (n)
Art. 1351. :very aent is bo"nd to render an acco"nt of his transactions and to deliver to the
principal whatever he !ay have received by virt"e of the aency& even tho"h it !ay not be owin
to the principal.
:very stip"lation e)e!ptin the aent fro! the obliation to render an acco"nt shall be void.
(1/27a)
Art. 1352. The aent !ay appoint a s"bstit"te if the principal has not prohibited hi! fro! doin so8
b"t he shall be responsible for the acts of the s"bstit"te<
(1) 2hen he was not iven the power to appoint one8
(2) 2hen he was iven s"ch power& b"t witho"t desinatin the person& and the person appointed
was notorio"sly inco!petent or insolvent.
All acts of the s"bstit"te appointed aainst the prohibition of the principal shall be void. (1/21)
Art. 135'. (n the cases !entioned in 6os. 1 and 2 of the precedin article& the principal !ay
f"rther!ore brin an action aainst the s"bstit"te with respect to the obliations which the latter
has contracted "nder the s"bstit"tion. (1/22a)
Art. 135*. The responsibility of two or !ore aents& even tho"h they have been appointed
si!"ltaneo"sly& is not solidary& if solidarity has not been e)pressly stip"lated. (1/2')
Art. 135+. (f solidarity has been areed "pon& each of the aents is responsible for the non1
f"lfill!ent of aency& and for the fa"lt or nelience of his fellows aents& e)cept in the latter case
when the fellow aents acted beyond the scope of their a"thority. (n)
Art. 135,. The aent owes interest on the s"!s he has applied to his own "se fro! the day on
which he did so& and on those which he still owes after the e)tin"ish!ent of the aency. (1/2*a)
Art. 135/. The aent who acts as s"ch is not personally liable to the party with who! he contracts&
"nless he e)pressly binds hi!self or e)ceeds the li!its of his a"thority witho"t ivin s"ch party
s"fficient notice of his powers. (1/2+)
Art. 1353. (f the aent contracts in the na!e of the principal& e)ceedin the scope of his a"thority&
and the principal does not ratify the contract& it shall be void if the party with who! the aent
contracted is aware of the li!its of the powers ranted by the principal. (n this case& however& the
aent is liable if he "ndertook to sec"re the principal;s ratification. (n)
Art. 1355. (f a d"ly a"thori%ed aent acts in accordance with the orders of the principal& the latter
cannot set "p the inorance of the aent as to circ"!stances whereof he hi!self was& or o"ht to
have been& aware. (n)
Art. 1577. @o far as third persons are concerned& an act is dee!ed to have been perfor!ed within
the scope of the aent;s a"thority& if s"ch act is within the ter!s of the power of attorney& as written&
even if the aent has in fact e)ceeded the li!its of his a"thority accordin to an "nderstandin
between the principal and the aent. (n)
Art. 1571. A third person cannot set "p the fact that the aent has e)ceeded his powers& if the
principal has ratified& or has sinified his willinness to ratify the aent;s acts. (n)
Art. 1572. A third person with who! the aent wishes to contract on behalf of the principal !ay
re0"ire the presentation of the power of attorney& or the instr"ctions as reards the aency. Private
or secret orders and instr"ctions of the principal do not pre."dice third persons who have relied
"pon the power of attorney or instr"ctions shown the!. (n)
Art. 157'. The co!!ission aent shall be responsible for the oods received by hi! in the ter!s
and conditions and as described in the consin!ent& "nless "pon receivin the! he sho"ld !ake a
written state!ent of the da!ae and deterioration s"ffered by the sa!e. (n)
Art. 157*. The co!!ission aent who handles oods of the sa!e kind and !ark& which belon to
different owners& shall distin"ish the! by co"nter!arks& and desinate the !erchandise
respectively belonin to each principal. (n)
Art. 157+. The co!!ission aent cannot& witho"t the e)press or i!plied consent of the principal&
sell on credit. @ho"ld he do so& the principal !ay de!and fro! hi! pay!ent in cash& b"t the
co!!ission aent shall be entitled to any interest or benefit& which !ay res"lt fro! s"ch sale. (n)
Art. 157,. @ho"ld the co!!ission aent& with a"thority of the principal& sell on credit& he shall so
infor! the principal& with a state!ent of the na!es of the b"yers. @ho"ld he fail to do so& the sale
shall be dee!ed to have been !ade for cash insofar as the principal is concerned. (n)
Art. 157/. @ho"ld the co!!ission aent receive on a sale& in addition to the ordinary co!!ission&
another called a "arantee co!!ission& he shall bear the risk of collection and shall pay the
principal the proceeds of the sale on the sa!e ter!s areed "pon with the p"rchaser. (n)
Art. 1573. The co!!ission aent who does not collect the credits of his principal at the ti!e when
they beco!e d"e and de!andable shall be liable for da!aes& "nless he proves that he e)ercised
d"e dilience for that p"rpose. (n)
Art. 1575. The aent is responsible not only for fra"d& b"t also for nelience& which shall be
."ded with !ore or less rior by the co"rts& accordin to whether the aency was or was not for a
co!pensation. (1/2,)

C9APT:- '
#BL($AT(#6@ #A T9: P-(6C(PAL

Art. 1517. The principal !"st co!ply with all the obliations which the aent !ay have contracted
within the scope of his a"thority.
As for any obliation wherein the aent has e)ceeded his power& the principal is not bo"nd e)cept
when he ratifies it e)pressly or tacitly. (1/2/)
Art. 1511. :ven when the aent has e)ceeded his a"thority& the principal is solidarily liable with the
aent if the for!er allowed the latter to act as tho"h he had f"ll powers. (n)
Art. 1512. The principal !"st advance to the aent& sho"ld the latter so re0"est& the s"!s necessary
for the e)ec"tion of the aency.
@ho"ld the aent have advanced the!& the principal !"st rei!b"rse hi! therefor& even if the
b"siness or "ndertakin was not s"ccessf"l& provided the aent is free fro! all fa"lt.
The rei!b"rse!ent shall incl"de interest on the s"!s advanced& fro! the day on which the
advance was !ade. (1/23)
Art. 151'. The principal !"st also inde!nify the aent for all the da!aes which the e)ec"tion of
the aency !ay have ca"sed the latter& witho"t fa"lt or nelience on his part. (1/25)
Art. 151*. The aent !ay retain in plede the thins which are the ob.ect of the aency "ntil the
principal effects the rei!b"rse!ent and pays the inde!nity set forth in the two precedin articles.
(1/'7)
Art. 151+. (f two or !ore persons have appointed an aent for a co!!on transaction or
"ndertakin& they shall be solidarily liable to the aent for all the conse0"ences of the aency.
(1/'1)
Art. 151,. 2hen two persons contract with reard to the sa!e thin& one of the! with the aent
and the other with the principal& and the two contracts are inco!patible with each other& that of
prior date shall be preferred& witho"t pre."dice to the provisions of Article 1+**. (n)
Art. 151/. (n the case referred to in the precedin article& if the aent has acted in ood faith& the
principal shall be liable in da!aes to the third person whose contract !"st be re.ected. (f the aent
acted in bad faith& he alone shall be responsible. (n)
Art. 1513. The principal is not liable for the e)penses inc"rred by the aent in the followin cases<
(1) (f the aent acted in contravention of the principal;s instr"ctions& "nless the latter sho"ld wish to
avail hi!self of the benefits derived fro! the contract8
(2) 2hen the e)penses were d"e to the fa"lt of the aent8
(') 2hen the aent inc"rred the! with knowlede that an "nfavorable res"lt wo"ld ens"e& if the
principal was not aware thereof8
(*) 2hen it was stip"lated that the e)penses wo"ld be borne by the aent& or that the latter wo"ld
be allowed only a certain s"!. (n)

C9APT:- *
=#D:@ #A :ET(6$?(@9=:6T #A A$:6CF

Art. 1515. Aency is e)tin"ished<
(1) By its revocation8
(2) By the withdrawal of the aent8
(') By the death& civil interdiction& insanity or insolvency of the principal or of the aent8
(*) By the dissol"tion of the fir! or corporation which entr"sted or accepted the aency8
(+) By the acco!plish!ent of the ob.ect or p"rpose of the aency8
(,) By the e)piration of the period for which the aency was constit"ted. (1/'2a)
Art. 1527. The principal !ay revoke the aency at will& and co!pel the aent to ret"rn the
doc"!ent evidencin the aency. @"ch revocation !ay be e)press or i!plied. (1/''a)
Art. 1521. (f the aency has been entr"sted for the p"rpose of contractin with specified persons&
its revocation shall not pre."dice the latter if they were not iven notice thereof. (1/'*)
Art. 1522. (f the aent had eneral powers& revocation of the aency does not pre."dice third
persons who acted in ood faith and witho"t knowlede of the revocation. 6otice of the revocation
in a newspaper of eneral circ"lation is a s"fficient warnin to third persons. (n)
Art. 152'. The appoint!ent of a new aent for the sa!e b"siness or transaction revokes the
previo"s aency fro! the day on which notice thereof was iven to the for!er aent& witho"t
pre."dice to the provisions of the two precedin articles. (1/'+a)
Art. 152*. The aency is revoked if the principal directly !anaes the b"siness entr"sted to the
aent& dealin directly with third persons. (n)
Art. 152+. 2hen two or !ore principals have ranted a power of attorney for a co!!on
transaction& any one of the! !ay revoke the sa!e witho"t the consent of the others. (n)
Art. 152,. A eneral power of attorney is revoked by a special one ranted to another aent& as
reards the special !atter involved in the latter. (n)
Art. 152/. An aency cannot be revoked if a bilateral contract depends "pon it& or if it is the !eans
of f"lfillin an obliation already contracted& or if a partner is appointed !anaer of a partnership
in the contract of partnership and his re!oval fro! the !anae!ent is "n."stifiable. (n)
Art. 1523. The aent !ay withdraw fro! the aency by ivin d"e notice to the principal. (f the
latter sho"ld s"ffer any da!ae by reason of the withdrawal& the aent !"st inde!nify hi!
therefor& "nless the aent sho"ld base his withdrawal "pon the i!possibility of contin"in the
perfor!ance of the aency witho"t rave detri!ent to hi!self. (1/',a)
Art. 1525. The aent& even if he sho"ld withdraw fro! the aency for a valid reason& !"st contin"e
to act "ntil the principal has had reasonable opport"nity to take the necessary steps to !eet the
sit"ation. (1/'/a)
Art. 15'7. The aency shall re!ain in f"ll force and effect even after the death of the principal& if it
has been constit"ted in the co!!on interest of the latter and of the aent& or in the interest of a
third person who has accepted the stip"lation in his favor. (n)
Art. 15'1. Anythin done by the aent& witho"t knowlede of the death of the principal or of any
other ca"se which e)tin"ishes the aency& is valid and shall be f"lly effective with respect to third
persons who !ay have contracted with hi! in ood faith. (1/'3)
Art. 15'2. (f the aent dies& his heirs !"st notify the principal thereof& and in the !eanti!e adopt
s"ch !eas"res as the circ"!stances !ay de!and in the interest of the latter. (1/'5)

Title E(. 1 L#A6

$:6:-AL P-#>(@(#6@

Art. 15''. By the contract of loan& one of the parties delivers to another& either so!ethin not
cons"!able so that the latter !ay "se the sa!e for a certain ti!e and ret"rn it& in which case the
contract is called a co!!odat"!8 or !oney or other cons"!able thin& "pon the condition that the
sa!e a!o"nt of the sa!e kind and 0"ality shall be paid& in which case the contract is si!ply called
a loan or !"t""!.
Co!!odat"! is essentially rat"ito"s.
@i!ple loan !ay be rat"ito"s or with a stip"lation to pay interest.
(n co!!odat"! the bailor retains the ownership of the thin loaned& while in si!ple loan&
ownership passes to the borrower. (1/*7a)
Art. 15'*. An accepted pro!ise to deliver so!ethin by way of co!!odat"! or si!ple loan is
bindin "pon parties& b"t the co!!odat"! or si!ple loan itself shall not be perfected "ntil the
delivery of the ob.ect of the contract. (n)

C9APT:- 1
C#==#DAT?=

@:CT(#6 1 1 6at"re of Co!!odat"!

Art. 15'+. The bailee in co!!odat"! ac0"ires the "sed of the thin loaned b"t not its fr"its8 if any
co!pensation is to be paid by hi! who ac0"ires the "se& the contract ceases to be a co!!odat"!.
(15*1a)
Art. 15',. Cons"!able oods !ay be the s"b.ect of co!!odat"! if the p"rpose of the contract is
not the cons"!ption of the ob.ect& as when it is !erely for e)hibition. (n)
Art. 15'/. =ovable or i!!ovable property !ay be the ob.ect of co!!odat"!. (n)
Art. 15'3. The bailor in co!!odat"! need not be the owner of the thin loaned. (n)
Art. 15'5. Co!!odat"! is p"rely personal in character. Conse0"ently<
(1) The death of either the bailor or the bailee e)tin"ishes the contract8
(2) The bailee can neither lend nor lease the ob.ect of the contract to a third person. 9owever& the
!e!bers of the bailee;s ho"sehold !ay !ake "se of the thin loaned& "nless there is a stip"lation
to the contrary& or "nless the nat"re of the thin forbids s"ch "se. (n)
Art. 15*7. A stip"lation that the bailee !ay !ake "se of the fr"its of the thin loaned is valid. (n)

@:CT(#6 2. 1 #bliations of the Bailee

Art. 15*1. The bailee is oblied to pay for the ordinary e)penses for the "se and preservation of the
thin loaned. (1/*'a)
Art. 15*2. The bailee is liable for the loss of the thin& even if it sho"ld be thro"h a fort"ito"s
event<
(1) (f he devotes the thin to any p"rpose different fro! that for which it has been loaned8
(2) (f he keeps it loner than the period stip"lated& or after the acco!plish!ent of the "se for which
the co!!odat"! has been constit"ted8
(') (f the thin loaned has been delivered with appraisal of its val"e& "nless there is a stip"lation
e)e!ption the bailee fro! responsibility in case of a fort"ito"s event8
(*) (f he lends or leases the thin to a third person& who is not a !e!ber of his ho"sehold8
(+) (f& bein able to save either the thin borrowed or his own thin& he chose to save the latter.
(1/**a and 1/*+)
Art. 15*'. The bailee does not answer for the deterioration of the thin loaned d"e only to the "se
thereof and witho"t his fa"lt. (1/*,)
Art. 15**. The bailee cannot retain the thin loaned on the ro"nd that the bailor owes hi!
so!ethin& even tho"h it !ay be by reason of e)penses. 9owever& the bailee has a riht of
retention for da!aes !entioned in Article 15+1. (1/*/a)
Art. 15*+. 2hen there are two or !ore bailees to who! a thin is loaned in the sa!e contract& they
are liable solidarily. (1/*3a)

@:CT(#6 '. 1 #bliations of the Bailor

Art. 15*,. The bailor cannot de!and the ret"rn of the thin loaned till after the e)piration of the
period stip"lated& or after the acco!plish!ent of the "se for which the co!!odat"! has been
constit"ted. 9owever& if in the !eanti!e& he sho"ld have "rent need of the thin& he !ay de!and
its ret"rn or te!porary "se.
(n case of te!porary "se by the bailor& the contract of co!!odat"! is s"spended while the thin is
in the possession of the bailor. (1/*5a)
Art. 15*/. The bailor !ay de!and the thin at will& and the contract"al relation is called a
precari"!& in the followin cases<
(1) (f neither the d"ration of the contract nor the "se to which the thin loaned sho"ld be devoted&
has been stip"lated8 or
(2) (f the "se of the thin is !erely tolerated by the owner. (1/+7a)
Art. 15*3. The bailor !ay de!and the i!!ediate ret"rn of the thin if the bailee co!!its any act
of inratit"de specified in Article /,+. (n)
Art. 15*5. The bailor shall ref"nd the e)traordinary e)penses d"rin the contract for the
preservation of the thin loaned& provided the bailee brins the sa!e to the knowlede of the bailor
before inc"rrin the!& e)cept when they are so "rent that the reply to the notification cannot be
awaited witho"t daner.
(f the e)traordinary e)penses arise on the occasion of the act"al "se of the thin by the bailee& even
tho"h he acted witho"t fa"lt& they shall be borne e0"ally by both the bailor and the bailee& "nless
there is a stip"lation to the contrary. (1/+1a)
Art. 15+7. (f& for the p"rpose of !akin "se of the thin& the bailee inc"rs e)penses other than those
referred to in Articles 15*1 and 15*5& he is not entitled to rei!b"rse!ent. (n)
Art. 15+1. The bailor who& knowin the flaws of the thin loaned& does not advise the bailee of the
sa!e& shall be liable to the latter for the da!aes which he !ay s"ffer by reason thereof. (1/+2)
Art. 15+2. The bailor cannot e)e!pt hi!self fro! the pay!ent of e)penses or da!aes by
abandonin the thin to the bailee. (n)

C9APT:- 2
@(=PL: L#A6 #- =?T??=

Art. 15+'. A person who receives a loan of !oney or any other f"nible thin ac0"ires the
ownership thereof& and is bo"nd to pay to the creditor an e0"al a!o"nt of the sa!e kind and
0"ality. (1/+'a)
Art. 15+*. A contract whereby one person transfers the ownership of non1f"nible thins to another
with the obliation on the part of the latter to ive thins of the sa!e kind& 0"antity& and 0"ality
shall be considered a barter. (n)
Art. 15++. The obliation of a person who borrows !oney shall be overned by the provisions of
Articles 12*5 and 12+7 of this Code.
(f what was loaned is a f"nible thin other than !oney& the debtor owes another thin of the sa!e
kind& 0"antity and 0"ality& even if it sho"ld chane in val"e. (n case it is i!possible to deliver the
sa!e kind& its val"e at the ti!e of the perfection of the loan shall be paid. (1/+*a)
Art. 15+,. 6o interest shall be d"e "nless it has been e)pressly stip"lated in writin. (1/++a)
Art. 15+/. Contracts and stip"lations& "nder any cloak or device whatever& intended to circ"!vent
the laws aainst "s"ry shall be void. The borrower !ay recover in accordance with the laws on
"s"ry. (n)
Art. 15+3. (n the deter!ination of the interest& if it is payable in kind& its val"e shall be appraised at
the c"rrent price of the prod"cts or oods at the ti!e and place of pay!ent. (n)
Art. 15+5. 2itho"t pre."dice to the provisions of Article 2212& interest d"e and "npaid shall not
earn interest. 9owever& the contractin parties !ay by stip"lation capitali%e the interest d"e and
"npaid& which as added principal& shall earn new interest. (n)
Art. 15,7. (f the borrower pays interest when there has been no stip"lation therefor& the provisions
of this Code concernin sol"tio indebiti& or nat"ral obliations& shall be applied& as the case !ay be.
(n)
Art. 15,1. ?s"rio"s contracts shall be overned by the ?s"ry Law and other special laws& so far as
they are not inconsistent with this Code. (n)

Title E((. 1 D:P#@(T

C9APT:- 1
D:P#@(T (6 $:6:-AL A6D (T@ D(AA:-:6T G(6D@

Art. 15,2. A deposit is constit"ted fro! the !o!ent a person receives a thin belonin to another&
with the obliation of safely keepin it and of ret"rnin the sa!e. (f the safekeepin of the thin
delivered is not the principal p"rpose of the contract& there is no deposit b"t so!e other contract.
(1/+3a)
Art. 15,'. An aree!ent to constit"te a deposit is bindin& b"t the deposit itself is not perfected
"ntil the delivery of the thin. (n)
Art. 15,*. A deposit !ay be constit"ted ."dicially or e)tra."dicially. (1/+5)
Art. 15,+. A deposit is a rat"ito"s contract& e)cept when there is an aree!ent to the contrary& or
"nless the depositary is enaed in the b"siness of storin oods. (1/,7a)
Art. 15,,. #nly !ovable thins !ay be the ob.ect of a deposit. (1/,1)
Art. 15,/. An e)tra."dicial deposit is either vol"ntary or necessary. (1/,2)

C9APT:- 2
>#L?6TA-F D:P#@(T

@:CT(#6 1. 1 $eneral Provisions

Art. 15,3. A vol"ntary deposit is that wherein the delivery is !ade by the will of the depositor. A
deposit !ay also be !ade by two or !ore persons each of who! believes hi!self entitled to the
thin deposited with a third person& who shall deliver it in a proper case to the one to who! it
belons. (1/,')
Art. 15,5. A contract of deposit !ay be entered into orally or in writin. (n)
Art. 15/7. (f a person havin capacity to contract accepts a deposit !ade by one who is
incapacitated& the for!er shall be s"b.ect to all the obliations of a depositary& and !ay be
co!pelled to ret"rn the thin by the "ardian& or ad!inistrator& of the person who !ade the
deposit& or by the latter hi!self if he sho"ld ac0"ire capacity. (1/,*)
Art. 15/1. (f the deposit has been !ade by a capacitated person with another who is not& the
depositor shall only have an action to recover the thin deposited while it is still in the possession
of the depositary& or to co!pel the latter to pay hi! the a!o"nt by which he !ay have enriched or
benefited hi!self with the thin or its price. 9owever& if a third person who ac0"ired the thin
acted in bad faith& the depositor !ay brin an action aainst hi! for its recovery. (1/,+a)

@:CT(#6 2. 1 #bliations of the Depositary

Art. 15/2. The depositary is oblied to keep the thin safely and to ret"rn it& when re0"ired& to the
depositor& or to his heirs and s"ccessors& or to the person who !ay have been desinated in the
contract. 9is responsibility& with reard to the safekeepin and the loss of the thin& shall be
overned by the provisions of Title ( of this Book.
(f the deposit is rat"ito"s& this fact shall be taken into acco"nt in deter!inin the deree of care
that the depositary !"st observe. (1/,,a)
Art. 15/'. ?nless there is a stip"lation to the contrary& the depositary cannot deposit the thin with
a third person. (f deposit with a third person is allowed& the depositary is liable for the loss if he
deposited the thin with a person who is !anifestly careless or "nfit. The depositary is responsible
for the nelience of his e!ployees. (n)
Art. 15/*. The depositary !ay chane the way of the deposit if "nder the circ"!stances he !ay
reasonably pres"!e that the depositor wo"ld consent to the chane if he knew of the facts of the
sit"ation. 9owever& before the depositary !ay !ake s"ch chane& he shall notify the depositor
thereof and wait for his decision& "nless delay wo"ld ca"se daner. (n)
Art. 15/+. The depositary holdin certificates& bonds& sec"rities or instr"!ents which earn interest
shall be bo"nd to collect the latter when it beco!es d"e& and to take s"ch steps as !ay be necessary
in order that the sec"rities !ay preserve their val"e and the rihts correspondin to the! accordin
to law.
The above provision shall not apply to contracts for the rent of safety deposit bo)es. (n)
Art. 15/,. ?nless there is a stip"lation to the contrary& the depositary !ay co!!inle rain or
other articles of the sa!e kind and 0"ality& in which case the vario"s depositors shall own or have a
proportionate interest in the !ass. (n)
Art. 15//. The depositary cannot !ake "se of the thin deposited witho"t the e)press per!ission
of the depositor.
#therwise& he shall be liable for da!aes.
9owever& when the preservation of the thin deposited re0"ires its "se& it !"st be "sed b"t only for
that p"rpose. (1/,/a)
Art. 15/3. 2hen the depositary has per!ission to "se the thin deposited& the contract loses the
concept of a deposit and beco!es a loan or co!!odat"!& e)cept where safekeepin is still the
principal p"rpose of the contract.
The per!ission shall not be pres"!ed& and its e)istence !"st be proved. (1/,3a)
Art. 15/5. The depositary is liable for the loss of the thin thro"h a fort"ito"s event<
(1) (f it is so stip"lated8
(2) (f he "ses the thin witho"t the depositor;s per!ission8
(') (f he delays its ret"rn8
(*) (f he allows others to "se it& even tho"h he hi!self !ay have been a"thori%ed to "se the sa!e.
(n)
Art. 1537. Ai)ed& savins& and c"rrent deposits of !oney in banks and si!ilar instit"tions shall be
overned by the provisions concernin si!ple loan. (n)
Art. 1531. 2hen the thin deposited is delivered closed and sealed& the depositary !"st ret"rn it in
the sa!e condition& and he shall be liable for da!aes sho"ld the seal or lock be broken thro"h
his fa"lt.
Aa"lt on the part of the depositary is pres"!ed& "nless there is proof to the contrary.
As reards the val"e of the thin deposited& the state!ent of the depositor shall be accepted& when
the forcible openin is i!p"table to the depositary& sho"ld there be no proof to the contrary.
9owever& the co"rts !ay pass "pon the credibility of the depositor with respect to the val"e
clai!ed by hi!.
2hen the seal or lock is broken& with or witho"t the depositary;s fa"lt& he shall keep the secret of
the deposit. (1/,5a)
Art. 1532. 2hen it beco!es necessary to open a locked bo) or receptacle& the depositary is
pres"!ed a"thori%ed to do so& if the key has been delivered to hi!8 or when the instr"ctions of the
depositor as reards the deposit cannot be e)ec"ted witho"t openin the bo) or receptacle. (n)
Art. 153'. The thin deposited shall be ret"rned with all its prod"cts& accessories and accessions.
@ho"ld the deposit consist of !oney& the provisions relative to aents in article 135, shall be
applied to the depositary. (1//7)
Art. 153*. The depositary cannot de!and that the depositor prove his ownership of the thin
deposited.
6evertheless& sho"ld he discover that the thin has been stolen and who its tr"e owner is& he !"st
advise the latter of the deposit.
(f the owner& in spite of s"ch infor!ation& does not clai! it within the period of one !onth& the
depositary shall be relieved of all responsibility by ret"rnin the thin deposited to the depositor.
(f the depositary has reasonable ro"nds to believe that the thin has not been lawf"lly ac0"ired by
the depositor& the for!er !ay ret"rn the sa!e. (1//1a)
Art. 153+. 2hen there are two or !ore depositors& if they are not solidary& and the thin ad!its of
division& each one cannot de!and !ore than his share.
2hen there is solidarity or the thin does not ad!it of division& the provisions of Articles 1212 and
121* shall overn. 9owever& if there is a stip"lation that the thin sho"ld be ret"rned to one of the
depositors& the depositary shall ret"rn it only to the person desinated. (1//2a)
Art. 153,. (f the depositor sho"ld lose his capacity to contract after havin !ade the deposit& the
thin cannot be ret"rned e)cept to the persons who !ay have the ad!inistration of his property and
rihts. (1//')
Art. 153/. (f at the ti!e the deposit was !ade a place was desinated for the ret"rn of the thin& the
depositary !"st take the thin deposited to s"ch place8 b"t the e)penses for transportation shall be
borne by the depositor.
(f no place has been desinated for the ret"rn& it shall be !ade where the thin deposited !ay be&
even if it sho"ld not be the sa!e place where the deposit was !ade& provided that there was no
!alice on the part of the depositary. (1//*)
Art. 1533. The thin deposited !"st be ret"rned to the depositor "pon de!and& even tho"h a
specified period or ti!e for s"ch ret"rn !ay have been fi)ed.
This provision shall not apply when the thin is ."dicially attached while in the depositary;s
possession& or sho"ld he have been notified of the opposition of a third person to the ret"rn or the
re!oval of the thin deposited. (n these cases& the depositary !"st i!!ediately infor! the
depositor of the attach!ent or opposition. (1//+)
Art. 1535. ?nless the deposit is for a val"able consideration& the depositary who !ay have
."stifiable reasons for not keepin the thin deposited !ay& even before the ti!e desinated& ret"rn
it to the depositor8 and if the latter sho"ld ref"se to receive it& the depositary !ay sec"re its
consination fro! the co"rt. (1//,a)
Art. 1557. (f the depositary by force !a.e"re or overn!ent order loses the thin and receives
!oney or another thin in its place& he shall deliver the s"! or other thin to the depositor. (1///a)
Art. 1551. The depositor;s heir who in ood faith !ay have sold the thin which he did not know
was deposited& shall only be bo"nd to ret"rn the price he !ay have received or to assin his riht of
action aainst the b"yer in case the price has not been paid hi!. (1//3)

@:CT(#6 '. 1 #bliations of the Depositor

Art. 1552. (f the deposit is rat"ito"s& the depositor is oblied to rei!b"rse the depositary for the
e)penses he !ay have inc"rred for the preservation of the thin deposited. (1//5a)
Art. 155'. The depositor shall rei!b"rse the depositary for any loss arisin fro! the character of
the thin deposited& "nless at the ti!e of the constit"tion of the deposit the for!er was not aware
of& or was not e)pected to know the danero"s character of the thin& or "nless he notified the
depositary of the sa!e& or the latter was aware of it witho"t advice fro! the depositor. (n)
Art. 155*. The depositary !ay retain the thin in plede "ntil the f"ll pay!ent of what !ay be d"e
hi! by reason of the deposit. (1/37)
Art. 155+. A deposit its e)tin"ished<
(1) ?pon the loss or destr"ction of the thin deposited8
(2) (n case of a rat"ito"s deposit& "pon the death of either the depositor or the depositary. (n)
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Art. 155,. A deposit is necessary<
(1) 2hen it is !ade in co!pliance with a leal obliation8
(2) 2hen it takes place on the occasion of any cala!ity& s"ch as fire& stor!& flood& pillae&
shipwreck& or other si!ilar events. (1/31a)
Art. 155/. The deposit referred to in 6o. 1 of the precedin article shall be overned by the
provisions of the law establishin it& and in case of its deficiency& by the r"les on vol"ntary deposit.
The deposit !entioned in 6o. 2 of the precedin article shall be re"lated by the provisions
concernin vol"ntary deposit and by Article 21,3. (1/32)
Art. 1553. The deposit of effects !ade by the travellers in hotels or inns shall also be rearded as
necessary. The keepers of hotels or inns shall be responsible for the! as depositaries& provided that
notice was iven to the!& or to their e!ployees& of the effects bro"ht by the "ests and that& on
the part of the latter& they take the preca"tions which said hotel1keepers or their s"bstit"tes advised
relative to the care and viilance of their effects. (1/3')
Art. 1555. The hotel1keeper is liable for the vehicles& ani!als and articles which have been
introd"ced or placed in the anne)es of the hotel. (n)
Art. 2777. The responsibility referred to in the two precedin articles shall incl"de the loss of& or
in."ry to the personal property of the "ests ca"sed by the servants or e!ployees of the keepers of
hotels or inns as well as straners8 b"t not that which !ay proceed fro! any force !a.e"re. The
fact that travellers are constrained to rely on the viilance of the keeper of the hotels or inns shall
be considered in deter!inin the deree of care re0"ired of hi!. (1/3*a)
Art. 2771. The act of a thief or robber& who has entered the hotel is not dee!ed force !a.e"re&
"nless it is done with the "se of ar!s or thro"h an irresistible force. (n)
Art. 2772. The hotel1keeper is not liable for co!pensation if the loss is d"e to the acts of the "est&
his fa!ily& servants or visitors& or if the loss arises fro! the character of the thins bro"ht into the
hotel. (n)
Art. 277'. The hotel1keeper cannot free hi!self fro! responsibility by postin notices to the effect
that he is not liable for the articles bro"ht by the "est. Any stip"lation between the hotel1keeper
and the "est whereby the responsibility of the for!er as set forth in articles 1553 to 2771 is
s"ppressed or di!inished shall be void. (n)
Art. 277*. The hotel1keeper has a riht to retain the thins bro"ht into the hotel by the "est& as a
sec"rity for credits on acco"nt of lodin& and s"pplies "s"ally f"rnished to hotel "ests. (n)

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Art. 277+. A ."dicial deposit or se0"estration takes place when an attach!ent or sei%"re of property
in litiation is ordered. (1/3+)
Art. 277,. =ovable as well as i!!ovable property !ay be the ob.ect of se0"estration. (1/3,)
Art. 277/. The depositary of property or ob.ects se0"estrated cannot be relieved of his
responsibility "ntil the controversy which ave rise thereto has co!e to an end& "nless the co"rt so
orders. (1/3/a)
Art. 2773. The depositary of property se0"estrated is bo"nd to co!ply& with respect to the sa!e&
with all the obliations of a ood father of a fa!ily. (1/33)
Art. 2775. As to !atters not provided for in this Code& ."dicial se0"estration shall be overned by
the -"les of Co"rt. (1/35)

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Art. 2717. By an aleatory contract& one of the parties or both reciprocally bind the!selves to ive
or to do so!ethin in consideration of what the other shall ive or do "pon the happenin of an
event which is "ncertain& or which is to occ"r at an indeter!inate ti!e. (1/57)

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Art. 2711. The contract of ins"rance is overned by special laws. =atters not e)pressly provided
for in s"ch special laws shall be re"lated by this Code. (n)
Art. 2712. Any person who is forbidden fro! receivin any donation "nder Article /'5 cannot be
na!ed beneficiary of a life ins"rance policy by the person who cannot !ake any donation to hi!&
accordin to said article. (n)

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Art. 271'. A a!e of chance is that which depends !ore on chance or ha%ard than or skill or
ability. Aor the p"rposes of the followin articles& in case of do"bt a a!e is dee!ed to be one of
chance. (n)
Art. 271*. 6o action can be !aintained by the winner for the collection of what he has won in a
a!e of chance. B"t any loser in a a!e of chance !ay recover his loss fro! the winner& with
leal interest fro! the ti!e he paid the a!o"nt lost& and s"bsidiarily fro! the operator or !anaer
of the a!blin ho"se. (1/55a)
Art. 271+. (f cheatin or deceit is co!!itted by the winner& he& and s"bsidiarily the operator or
!anaer of the a!blin ho"se& shall pay by way of e)e!plary da!aes& not less than the
e0"ivalent of the s"! lost& in addition to the latter a!o"nt. (f both the winner and the loser have
perpetrated fra"d& no action for recovery can be bro"ht by either. (n)
Art. 271,. (f the loser ref"ses or nelects to brin an action to recover what has been lost& his or her
creditors& spo"se& descendants or other persons entitled to be s"pported by the loser !ay instit"te
the action. The s"! thereby obtained shall be applied to the creditors; clai!s& or to the s"pport of
the spo"se or relatives& as the case !ay be. (n)
Art. 271/. The provisions of Article 271* and 271, apply when two or !ore persons bet in a a!e
of chance& altho"h they take no active part in the a!e itself. (1/55a)
Art. 2713. (f a contract which p"rports to be for the delivery of oods& sec"rities or shares of stock
is entered into with the intention that the difference between the price stip"lated and the e)chane
or !arket price at the ti!e of the pretended delivery shall be paid by the loser to the winner& the
transaction is n"ll and void. The loser !ay recover what he has paid. (n)
Art. 2715. Bettin on the res"lt of sports& athletic co!petitions& or a!es of skill !ay be prohibited
by local ordinances. (n)
Art. 2727. The loser in any a!e which is not one of chance& when there is no local ordinance
which prohibits bettin therein& is "nder obliation to pay his loss& "nless the a!o"nt thereof is
e)cessive "nder the circ"!stances. (n the latter case& the co"rt shall red"ce the loss to the proper
s"!. (1371a)

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Art. 2721. The aleatory contract of life ann"ity binds the debtor to pay an ann"al pension or
inco!e d"rin the life of one or !ore deter!inate persons in consideration of a capital consistin
of !oney or other property& whose ownership is transferred to hi! at once with the b"rden of the
inco!e. (1372a)
Art. 2722. The ann"ity !ay be constit"ted "pon the life of the person who ives the capital& "pon
that of a third person& or "pon the lives of vario"s persons& all of who! !"st be livin at the ti!e
the ann"ity is established.
(t !ay also be constit"ted in favor of the person or persons "pon whose life or lives the contract is
entered into& or in favor of another or other persons. (137')
Art. 272'. Life ann"ity shall be void if constit"ted "pon the life of a person who was already dead
at the ti!e the contract was entered into& or who was at that ti!e s"fferin fro! an illness which
ca"sed his death within twenty days followin said date. (137*)
Art. 272*. The lack of pay!ent of the inco!e d"e does not a"thori%e the recipient of the life
ann"ity to de!and the rei!b"rse!ent of the capital or to retake possession of the property
alienated& "nless there is a stip"lation to the contrary8 he shall have only a riht ."dicially to clai!
the pay!ent of the inco!e in arrears and to re0"ire a sec"rity for the f"t"re inco!e& "nless there is
a stip"lation to the contrary. (137+a)
Art. 272+. The inco!e correspondin to the year in which the person en.oyin it dies shall be paid
in proportion to the days d"rin which he lived8 if the inco!e sho"ld be paid by install!ents in
advance& the whole a!o"nt of the install!ent which bean to r"n d"rin his life shall be paid.
(137,)
Art. 272,. 9e who constit"tes an ann"ity by rat"ito"s title "pon his property& !ay provide at the
ti!e the ann"ity is established that the sa!e shall not be s"b.ect to e)ec"tion or attach!ent on
acco"nt of the obliations of the recipient of the ann"ity. (f the ann"ity was constit"ted in fra"d of
creditors& the latter !ay ask for the e)ec"tion or attach!ent of the property. (137/a)
Art. 272/. 6o ann"ity shall be clai!ed witho"t first provin the e)istence of the person "pon
whose life the ann"ity is constit"ted. (1373)

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Art. 2723. A co!pro!ise is a contract whereby the parties& by !akin reciprocal concessions&
avoid a litiation or p"t an end to one already co!!enced. (1375a)
Art. 2725. The co"rt shall endeavor to pers"ade the litiants in a civil case to aree "pon so!e fair
co!pro!ise. (n)
Art. 27'7. :very civil action or proceedin shall be s"spended<
(1) (f willinness to disc"ss a possible co!pro!ise is e)pressed by one or both parties8 or
(2) (f it appears that one of the parties& before the co!!ence!ent of the action or proceedin&
offered to disc"ss a possible co!pro!ise b"t the other party ref"sed the offer.
The d"ration and ter!s of the s"spension of the civil action or proceedin and si!ilar !atters shall
be overned by s"ch provisions of the r"les of co"rt as the @"pre!e Co"rt shall pro!"late. @aid
r"les of co"rt shall likewise provide for the appoint!ent and d"ties of a!icable co!po"nders. (n)
Art. 27'1. The co"rts !ay !itiate the da!aes to be paid by the losin party who has shown a
sincere desire for a co!pro!ise. (n)
Art. 27'2. The co"rt;s approval is necessary in co!pro!ises entered into by "ardians& parents&
absentee;s representatives& and ad!inistrators or e)ec"tors of decedent;s estates. (1317a)
Art. 27''. 4"ridical persons !ay co!pro!ise only in the for! and with the re0"isites which !ay
be necessary to alienate their property. (1312a)
Art. 27'*. There !ay be a co!pro!ise "pon the civil liability arisin fro! an offense8 b"t s"ch
co!pro!ise shall not e)tin"ish the p"blic action for the i!position of the leal penalty. (131')
Art. 27'+. 6o co!pro!ise "pon the followin 0"estions shall be valid<
(1) The civil stat"s of persons8
(2) The validity of a !arriae or a leal separation8
(') Any ro"nd for leal separation8
(*) A"t"re s"pport8
(+) The ."risdiction of co"rts8
(,) A"t"re leiti!e. (131*a)
Art. 27',. A co!pro!ise co!prises only those ob.ects which are definitely stated therein& or which
by necessary i!plication fro! its ter!s sho"ld be dee!ed to have been incl"ded in the sa!e.
A eneral ren"nciation of rihts is "nderstood to refer only to those that are connected with the
disp"te which was the s"b.ect of the co!pro!ise. (131+)
Art. 27'/. A co!pro!ise has "pon the parties the effect and a"thority of res ."dicata8 b"t there
shall be no e)ec"tion e)cept in co!pliance with a ."dicial co!pro!ise. (131,)
Art. 27'3. A co!pro!ise in which there is !istake& fra"d& violence& inti!idation& "nd"e infl"ence&
or falsity of doc"!ents& is s"b.ect to the provisions of Article 1''7 of this Code.
9owever& one of parties cannot set "p a !istake of fact as aainst the other if the latter& by virt"e of
the co!pro!ise& has withdrawn fro! a litiation already co!!enced. (131/a)
Art. 27'5. 2hen the parties co!pro!ise enerally on all differences which they !iht have with
each other& the discovery of doc"!ents referrin to one or !ore b"t not to all of the 0"estions
settled shall not itself be a ca"se for ann"l!ent or rescission of the co!pro!ise& "nless said
doc"!ents have been concealed by one of the parties.
B"t the co!pro!ise !ay be ann"lled or rescinded if it refers only to one thin to which one of the
parties has no riht& as shown by the newly1discovered doc"!ents. (n)
Art. 27*7. (f after a litiation has been decided by a final ."d!ent& a co!pro!ise sho"ld be
areed "pon& either or both parties bein "naware of the e)istence of the final ."d!ent& the
co!pro!ise !ay be rescinded.
(norance of a ."d!ent which !ay be revoked or set aside is not a valid ro"nd for attackin a
co!pro!ise. (1315a)
Art. 27*1. (f one of the parties fails or ref"ses to abide by the co!pro!ise& the other party !ay
either enforce the co!pro!ise or reard it as rescinded and insist "pon his oriinal de!and. (n)

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Art. 27*2. The sa!e persons who !ay enter into a co!pro!ise !ay s"b!it their controversies to
one or !ore arbitrators for decision. (1327a)
Art. 27*'. The provisions of the precedin Chapter "pon co!pro!ises shall also be applicable to
arbitrations. (1321a)
Art. 27**. Any stip"lation that the arbitrators; award or decision shall be final& is valid& witho"t
pre."dice to Articles 27'3& 27'5& and 27*7. (n)
Art. 27*+. Any cla"se ivin one of the parties power to choose !ore arbitrators than the other is
void and of no effect. (n)
Art. 27*,. The appoint!ent of arbitrators and the proced"re for arbitration shall be overned by the
provisions of s"ch r"les of co"rt as the @"pre!e Co"rt shall pro!"late. (n)

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Art. 27*/. By "aranty a person& called the "arantor& binds hi!self to the creditor to f"lfill the
obliation of the principal debtor in case the latter sho"ld fail to do so.
(f a person binds hi!self solidarily with the principal debtor& the provisions of @ection *& Chapter
'& Title ( of this Book shall be observed. (n s"ch case the contract is called a s"retyship. (1322a)
Art. 27*3. A "aranty is rat"ito"s& "nless there is a stip"lation to the contrary. (n)
Art. 27*5. A !arried wo!an !ay "arantee an obliation witho"t the h"sband;s consent& b"t shall
not thereby bind the con."al partnership& e)cept in cases provided by law. (n)
Art. 27+7. (f a "aranty is entered into witho"t the knowlede or consent& or aainst the will of the
principal debtor& the provisions of Articles 12', and 12'/ shall apply. (n)
Art. 27+1. A "aranty !ay be conventional& leal or ."dicial& rat"ito"s& or by onero"s title.
(t !ay also be constit"ted& not only in favor of the principal debtor& b"t also in favor of the other
"arantor& with the latter;s consent& or witho"t his knowlede& or even over his ob.ection. (132')
Art. 27+2. A "aranty cannot e)ist witho"t a valid obliation.
6evertheless& a "aranty !ay be constit"ted to "arantee the perfor!ance of a voidable or an
"nenforceable contract. (t !ay also "arantee a nat"ral obliation. (132*a)
Art. 27+'. A "aranty !ay also be iven as sec"rity for f"t"re debts& the a!o"nt of which is not yet
known8 there can be no clai! aainst the "arantor "ntil the debt is li0"idated. A conditional
obliation !ay also be sec"red. (132+a)
Art. 27+*. A "arantor !ay bind hi!self for less& b"t not for !ore than the principal debtor& both as
reards the a!o"nt and the onero"s nat"re of the conditions.
@ho"ld he have bo"nd hi!self for !ore& his obliations shall be red"ced to the li!its of that of the
debtor. (132,)
Art. 27++. A "aranty is not pres"!ed8 it !"st be e)press and cannot e)tend to !ore than what is
stip"lated therein.
(f it be si!ple or indefinite& it shall co!pro!ise not only the principal obliation& b"t also all its
accessories& incl"din the ."dicial costs& provided with respect to the latter& that the "arantor shall
only be liable for those costs inc"rred after he has been ."dicially re0"ired to pay. (132/a)
Art. 27+,. #ne who is oblied to f"rnish a "arantor shall present a person who possesses interity&
capacity to bind hi!self& and s"fficient property to answer for the obliation which he "arantees.
The "arantor shall be s"b.ect to the ."risdiction of the co"rt of the place where this obliation is to
be co!plied with. (1323a)
Art. 27+/. (f the "arantor sho"ld be convicted in first instance of a cri!e involvin dishonesty or
sho"ld beco!e insolvent& the creditor !ay de!and another who has all the 0"alifications re0"ired
in the precedin article. The case is e)cepted where the creditor has re0"ired and stip"lated that a
specified person sho"ld be the "arantor. (1325a)

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@:CT(#6 1. 1 :ffects of $"aranty
Between the $"arantor and the Creditor

Art. 27+3. The "arantor cannot be co!pelled to pay the creditor "nless the latter has e)ha"sted all
the property of the debtor& and has resorted to all the leal re!edies aainst the debtor. (13'7a)
Art. 27+5. The e)c"ssion shall not take place<
(1) (f the "arantor has e)pressly reno"nced it8
(2) (f he has bo"nd hi!self solidarily with the debtor8
(') (n case of insolvency of the debtor8
(*) 2hen he has absconded& or cannot be s"ed within the Philippines "nless he has left a !anaer
or representative8
(+) (f it !ay be pres"!ed that an e)ec"tion on the property of the principal debtor wo"ld not res"lt
in the satisfaction of the obliation. (13'1a)
Art. 27,7. (n order that the "arantor !ay !ake "se of the benefit of e)cl"sion& he !"st set it "p
aainst the creditor "pon the latter;s de!and for pay!ent fro! hi!& and point o"t to the creditor
available property of the debtor within Philippine territory& s"fficient to cover the a!o"nt of the
debt. (13'2)
Art. 27,1. The "arantor havin f"lfilled all the conditions re0"ired in the precedin article& the
creditor who is nelient in e)ha"stin the property pointed o"t shall s"ffer the loss& to the e)tent
of said property& for the insolvency of the debtor res"ltin fro! s"ch nelience. (13''a)
Art. 27,2. (n every action by the creditor& which !"st be aainst the principal debtor alone& e)cept
in the cases !entioned in Article 27+5& the for!er shall ask the co"rt to notify the "arantor of the
action. The "arantor !ay appear so that he !ay& if he so desire& set "p s"ch defenses as are
ranted hi! by law. The benefit of e)c"ssion !entioned in Article 27+3 shall always be
"ni!paired& even if ."d!ent sho"ld be rendered aainst the principal debtor and the "arantor in
case of appearance by the latter. (13'*a)
Art. 27,'. A co!pro!ise between the creditor and the principal debtor benefits the "arantor b"t
does not pre."dice hi!. That which is entered into between the "arantor and the creditor benefits
b"t does not pre."dice the principal debtor. (13'+a)
Art. 27,*. The "arantor of a "arantor shall en.oy the benefit of e)c"ssion& both with respect to
the "arantor and to the principal debtor. (13',)
Art. 27,+. @ho"ld there be several "arantors of only one debtor and for the sa!e debt& the
obliation to answer for the sa!e is divided a!on all. The creditor cannot clai! fro! the
"arantors e)cept the shares which they are respectively bo"nd to pay& "nless solidarity has been
e)pressly stip"lated.
The benefit of division aainst the co1"arantors ceases in the sa!e cases and for the sa!e reasons
as the benefit of e)c"ssion aainst the principal debtor. (13'/)

@:CT(#6 2. 1 :ffects of $"aranty
Between the Debtor and the $"arantor

Art. 27,,. The "arantor who pays for a debtor !"st be inde!nified by the latter.
The inde!nity co!prises<
(1) The total a!o"nt of the debt8
(2) The leal interests thereon fro! the ti!e the pay!ent was !ade known to the debtor& even
tho"h it did not earn interest for the creditor8
(') The e)penses inc"rred by the "arantor after havin notified the debtor that pay!ent had been
de!anded of hi!8
(*) Da!aes& if they are d"e. (13'3a)
Art. 27,/. The "arantor who pays is s"broated by virt"e thereof to all the rihts which the
creditor had aainst the debtor.
(f the "arantor has co!pro!ised with the creditor& he cannot de!and of the debtor !ore than
what he has really paid. (13'5)
Art. 27,3. (f the "arantor sho"ld pay witho"t notifyin the debtor& the latter !ay enforce aainst
hi! all the defenses which he co"ld have set "p aainst the creditor at the ti!e the pay!ent was
!ade. (13*7)
Art. 27,5. (f the debt was for a period and the "arantor paid it before it beca!e d"e& he cannot
de!and rei!b"rse!ent of the debtor "ntil the e)piration of the period "nless the pay!ent has been
ratified by the debtor. (13*1a)
Art. 27/7. (f the "arantor has paid witho"t notifyin the debtor& and the latter not bein aware of
the pay!ent& repeats the pay!ent& the for!er has no re!edy whatever aainst the debtor& b"t only
aainst the creditor. 6evertheless& in case of a rat"ito"s "aranty& if the "arantor was prevented
by a fort"ito"s event fro! advisin the debtor of the pay!ent& and the creditor beco!es insolvent&
the debtor shall rei!b"rse the "arantor for the a!o"nt paid. (13*2a)
Art. 27/1. The "arantor& even before havin paid& !ay proceed aainst the principal debtor<
(1) 2hen he is s"ed for the pay!ent8
(2) (n case of insolvency of the principal debtor8
(') 2hen the debtor has bo"nd hi!self to relieve hi! fro! the "aranty within a specified period&
and this period has e)pired8
(*) 2hen the debt has beco!e de!andable& by reason of the e)piration of the period for pay!ent8
(+) After the lapse of ten years& when the principal obliation has no fi)ed period for its !at"rity&
"nless it be of s"ch nat"re that it cannot be e)tin"ished e)cept within a period loner than ten
years8
(,) (f there are reasonable ro"nds to fear that the principal debtor intends to abscond8
(/) (f the principal debtor is in i!!inent daner of beco!in insolvent.
(n all these cases& the action of the "arantor is to obtain release fro! the "aranty& or to de!and a
sec"rity that shall protect hi! fro! any proceedins by the creditor and fro! the daner of
insolvency of the debtor. (13'*a)
Art. 27/2. (f one& at the re0"est of another& beco!es a "arantor for the debt of a third person who
is not present& the "arantor who satisfies the debt !ay s"e either the person so re0"estin or the
debtor for rei!b"rse!ent. (n)

@:CT(#6 '. 1 :ffects of $"aranty as Between Co1$"arantors

Art. 27/'. 2hen there are two or !ore "arantors of the sa!e debtor and for the sa!e debt& the
one a!on the! who has paid !ay de!and of each of the others the share which is proportionally
owin fro! hi!.
(f any of the "arantors sho"ld be insolvent& his share shall be borne by the others& incl"din the
payer& in the sa!e proportion.
The provisions of this article shall not be applicable& "nless the pay!ent has been !ade by virt"e
of a ."dicial de!and or "nless the principal debtor is insolvent. (13**a)
Art. 27/*. (n the case of the precedin article& the co1"arantors !ay set "p aainst the one who
paid& the sa!e defenses which wo"ld have pertained to the principal debtor aainst the creditor&
and which are not p"rely personal to the debtor. (13*+)
Art. 27/+. A s"b1"arantor& in case of the insolvency of the "arantor for who! he bo"nd hi!self&
is responsible to the co1"arantors in the sa!e ter!s as the "arantor. (13*,)

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Art. 27/,. The obliation of the "arantor is e)tin"ished at the sa!e ti!e as that of the debtor&
and for the sa!e ca"ses as all other obliations. (13*/)
Art. 27//. (f the creditor vol"ntarily accepts i!!ovable or other property in pay!ent of the debt&
even if he sho"ld afterwards lose the sa!e thro"h eviction& the "arantor is released. (13*5)
Art. 27/3. A release !ade by the creditor in favor of one of the "arantors& witho"t the consent of
the others& benefits all to the e)tent of the share of the "arantor to who! it has been ranted.
(13+7)
Art. 27/5. An e)tension ranted to the debtor by the creditor witho"t the consent of the "arantor
e)tin"ishes the "aranty. The !ere fail"re on the part of the creditor to de!and pay!ent after the
debt has beco!e d"e does not of itself constit"te any e)tention of ti!e referred to herein. (13+1a)
Art. 2737. The "arantors& even tho"h they be solidary& are released fro! their obliation
whenever by so!e act of the creditor they cannot be s"broated to the rihts& !ortaes& and
preference of the latter. (13+2)
Art. 2731. The "arantor !ay set "p aainst the creditor all the defenses which pertain to the
principal debtor and are inherent in the debt8 b"t not those that are personal to the debtor. (13+')

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Art. 2732. The bonds!an who is to be offered in virt"e of a provision of law or of a ."dicial order
shall have the 0"alifications prescribed in Article 27+, and in special laws. (13+*a)
Art. 273'. (f the person bo"nd to ive a bond in the cases of the precedin article& sho"ld not be
able to do so& a plede or !ortae considered s"fficient to cover his obliation shall be ad!itted
in lie" thereof. (13++)
Art. 273*. A ."dicial bonds!an cannot de!and the e)ha"stion of the property of the principal
debtor.
A s"b1s"rety in the sa!e case& cannot de!and the e)ha"stion of the property of the debtor of the
s"rety.

Title E>(. 1 PL:D$:& =#-T$A$: A6D A6T(C9-:@(@

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Art. 273+. The followin re0"isites are essential to the contracts of plede and !ortae<
(1) That they be constit"ted to sec"re the f"lfill!ent of a principal obliation8
(2) That the pledor or !ortaor be the absol"te owner of the thin pleded or !ortaed8
(') That the persons constit"tin the plede or !ortae have the free disposal of their property&
and in the absence thereof& that they be leally a"thori%ed for the p"rpose.
Third persons who are not parties to the principal obliation !ay sec"re the latter by pledin or
!ortain their own property. (13+/)
Art. 273,. The provisions of Article 27+2 are applicable to a plede or !ortae. (n)
Art. 273/. (t is also of the essence of these contracts that when the principal obliation beco!es
d"e& the thins in which the plede or !ortae consists !ay be alienated for the pay!ent to the
creditor. (13+3)
Art. 2733. The creditor cannot appropriate the thins iven by way of plede or !ortae& or
dispose of the!. Any stip"lation to the contrary is n"ll and void. (13+5a)
Art. 2735. A plede or !ortae is indivisible& even tho"h the debt !ay be divided a!on the
s"ccessors in interest of the debtor or of the creditor.
Therefore& the debtor;s heir who has paid a part of the debt cannot ask for the proportionate
e)tin"ish!ent of the plede or !ortae as lon as the debt is not co!pletely satisfied.
6either can the creditor;s heir who received his share of the debt ret"rn the plede or cancel the
!ortae& to the pre."dice of the other heirs who have not been paid.
Aro! these provisions is e)pected the case in which& there bein several thins iven in !ortae
or plede& each one of the! "arantees only a deter!inate portion of the credit.
The debtor& in this case& shall have a riht to the e)tin"ish!ent of the plede or !ortae as the
portion of the debt for which each thin is specially answerable is satisfied. (13,7)
Art. 2757. The indivisibility of a plede or !ortae is not affected by the fact that the debtors are
not solidarily liable. (n)
Art. 2751. The contract of plede or !ortae !ay sec"re all kinds of obliations& be they p"re or
s"b.ect to a s"spensive or resol"tory condition. (13,1)
Art. 2752. A pro!ise to constit"te a plede or !ortae ives rise only to a personal action
between the contractin parties& witho"t pre."dice to the cri!inal responsibility inc"rred by hi!
who defra"ds another& by offerin in plede or !ortae as "nenc"!bered& thins which he knew
were s"b.ect to so!e b"rden& or by !isrepresentin hi!self to be the owner of the sa!e. (13,2)

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Art. 275'. (n addition to the re0"isites prescribed in Article 273+& it is necessary& in order to
constit"te the contract of plede& that the thin pleded be placed in the possession of the creditor&
or of a third person by co!!on aree!ent. (13,')
Art. 275*. All !ovables which are within co!!erce !ay be pleded& provided they are s"sceptible
of possession. (13,*)
Art. 275+. (ncorporeal rihts& evidenced by neotiable instr"!ents& bills of ladin& shares of stock&
bonds& wareho"se receipts and si!ilar doc"!ents !ay also be pleded. The instr"!ent provin the
riht pleded shall be delivered to the creditor& and if neotiable& !"st be indorsed. (n)
Art. 275,. A plede shall not take effect aainst third persons if a description of the thin pleded
and the date of the plede do not appear in a p"blic instr"!ent. (13,+a)
Art. 275/. 2ith the consent of the pledee& the thin pleded !ay be alienated by the pledor or
owner& s"b.ect to the plede. The ownership of the thin pleded is trans!itted to the vendee or
transferee as soon as the pledee consents to the alienation& b"t the latter shall contin"e in
possession. (n)
Art. 2753. The contract of plede ives a riht to the creditor to retain the thin in his possession or
in that of a third person to who! it has been delivered& "ntil the debt is paid. (13,,a)
Art. 2755. The creditor shall take care of the thin pleded with the dilience of a ood father of a
fa!ily8 he has a riht to the rei!b"rse!ent of the e)penses !ade for its preservation& and is liable
for its loss or deterioration& in confor!ity with the provisions of this Code. (13,/)
Art. 2177. The pledee cannot deposit the thin pleded with a third person& "nless there is a
stip"lation a"thori%in hi! to do so.
The pledee is responsible for the acts of his aents or e!ployees with respect to the thin pleded.
(n)
Art. 2171. The pledor has the sa!e responsibility as a bailor in co!!odat"! in the case "nder
Article 15+1. (n)
Art. 2172. (f the plede earns or prod"ces fr"its& inco!e& dividends& or interests& the creditor shall
co!pensate what he receives with those which are owin hi!8 b"t if none are owin hi!& or
insofar as the a!o"nt !ay e)ceed that which is d"e& he shall apply it to the principal. ?nless there
is a stip"lation to the contrary& the plede shall e)tend to the interest and earnins of the riht
pleded.
(n case of a plede of ani!als& their offsprin shall pertain to the pledor or owner of ani!als
pleded& b"t shall be s"b.ect to the plede& if there is no stip"lation to the contrary. (13,3a)
Art. 217'. ?nless the thin pleded is e)propriated& the debtor contin"es to be the owner thereof.
6evertheless& the creditor !ay brin the actions which pertain to the owner of the thin pleded in
order to recover it fro!& or defend it aainst a third person. (13,5)
Art. 217*. The creditor cannot "se the thin pleded& witho"t the a"thority of the owner& and if he
sho"ld do so& or sho"ld !is"se the thin in any other way& the owner !ay ask that it be ."dicially or
e)tra."dicially deposited. 2hen the preservation of the thin pleded re0"ires its "se& it !"st be
"sed by the creditor b"t only for that p"rpose. (13/7a)
Art. 217+. The debtor cannot ask for the ret"rn of the thin pleded aainst the will of the creditor&
"nless and "ntil he has paid the debt and its interest& with e)penses in a proper case. (13/1)
Art. 217,. (f thro"h the nelience or wilf"l act of the pledee& the thin pleded is in daner of
bein lost or i!paired& the pledor !ay re0"ire that it be deposited with a third person. (n)
Art. 217/. (f there are reasonable ro"nds to fear the destr"ction or i!pair!ent of the thin
pleded& witho"t the fa"lt of the pledee& the pledor !ay de!and the ret"rn of the thin& "pon
offerin another thin in plede& provided the latter is of the sa!e kind as the for!er and not of
inferior 0"ality& and witho"t pre."dice to the riht of the pledee "nder the provisions of the
followin article.
The pledee is bo"nd to advise the pledor& witho"t delay& of any daner to the thin pleded. (n)
Art. 2173. (f& witho"t the fa"lt of the pledee& there is daner of destr"ction& i!pair!ent& or
di!in"tion in val"e of the thin pleded& he !ay ca"se the sa!e to be sold at a p"blic sale. The
proceeds of the a"ction shall be a sec"rity for the principal obliation in the sa!e !anner as the
thin oriinally pleded. (n)
Art. 2175. (f the creditor is deceived on the s"bstance or 0"ality of the thin pleded& he !ay either
clai! another thin in its stead& or de!and i!!ediate pay!ent of the principal obliation. (n)
Art. 2117. (f the thin pleded is ret"rned by the pledee to the pledor or owner& the plede is
e)tin"ished. Any stip"lation to the contrary shall be void.
(f s"bse0"ent to the perfection of the plede& the thin is in the possession of the pledor or owner&
there is a pri!a facie pres"!ption that the sa!e has been ret"rned by the pledee. This sa!e
pres"!ption e)ists if the thin pleded is in the possession of a third person who has received it
fro! the pledor or owner after the constit"tion of the plede. (n)
Art. 2111. A state!ent in writin by the pledee that he reno"nces or abandons the plede is
s"fficient to e)tin"ish the plede. Aor this p"rpose& neither the acceptance by the pledor or
owner& nor the ret"rn of the thin pleded is necessary& the pledee beco!in a depositary. (n)
Art. 2112. The creditor to who! the credit has not been satisfied in d"e ti!e& !ay proceed before a
6otary P"blic to the sale of the thin pleded. This sale shall be !ade at a p"blic a"ction& and with
notification to the debtor and the owner of the thin pleded in a proper case& statin the a!o"nt
for which the p"blic sale is to be held. (f at the first a"ction the thin is not sold& a second one with
the sa!e for!alities shall be held8 and if at the second a"ction there is no sale either& the creditor
!ay appropriate the thin pleded. (n this case he shall be oblied to ive an ac0"ittance for his
entire clai!. (13/2a)
Art. 211'. At the p"blic a"ction& the pledor or owner !ay bid. 9e shall& !oreover& have a better
riht if he sho"ld offer the sa!e ter!s as the hihest bidder.
The pledee !ay also bid& b"t his offer shall not be valid if he is the only bidder. (n)
Art. 211*. All bids at the p"blic a"ction shall offer to pay the p"rchase price at once. (f any other
bid is accepted& the pledee is dee!ed to have been received the p"rchase price& as far as the
pledor or owner is concerned. (n)
Art. 211+. The sale of the thin pleded shall e)tin"ish the principal obliation& whether or not the
proceeds of the sale are e0"al to the a!o"nt of the principal obliation& interest and e)penses in a
proper case. (f the price of the sale is !ore than said a!o"nt& the debtor shall not be entitled to the
e)cess& "nless it is otherwise areed. (f the price of the sale is less& neither shall the creditor be
entitled to recover the deficiency& notwithstandin any stip"lation to the contrary. (n)
Art. 211,. After the p"blic a"ction& the pledee shall pro!ptly advise the pledor or owner of the
res"lt thereof. (n)
Art. 211/. Any third person who has any riht in or to the thin pleded !ay satisfy the principal
obliation as soon as the latter beco!es d"e and de!andable.(n)
Art. 2113. (f a credit which has been pleded beco!es d"e before it is redee!ed& the pledee !ay
collect and receive the a!o"nt d"e. 9e shall apply the sa!e to the pay!ent of his clai!& and
deliver the s"rpl"s& sho"ld there be any& to the pledor. (n)
Art. 2115. (f two or !ore thins are pleded& the pledee !ay choose which he will ca"se to be
sold& "nless there is a stip"lation to the contrary. 9e !ay de!and the sale of only as !any of the
thins as are necessary for the pay!ent of the debt. (n)
Art. 2127. (f a third party sec"res an obliation by pledin his own !ovable property "nder the
provisions of Article 273+ he shall have the sa!e rihts as a "arantor "nder Articles 27,, to 27/7&
and Articles 27// to 2731. 9e is not pre."diced by any waiver of defense by the principal oblior.
(n)
Art. 2121. Pledes created by operation of law& s"ch as those referred to in Articles +*,& 1/'1& and
155*& are overned by the foreoin articles on the possession& care and sale of the thin as well as
on the ter!ination of the plede. 9owever& after pay!ent of the debt and e)penses& the re!ainder
of the price of the sale shall be delivered to the oblior. (n)
Art. 2122. A thin "nder a plede by operation of law !ay be sold only after de!and of the a!o"nt
for which the thin is retained. The p"blic a"ction shall take place within one !onth after s"ch
de!and. (f& witho"t ."st ro"nds& the creditor does not ca"se the p"blic sale to be held within s"ch
period& the debtor !ay re0"ire the ret"rn of the thin. (n)
Art. 212'. 2ith reard to pawnshops and other establish!ents& which are enaed in !akin loans
sec"red by pledes& the special laws and re"lations concernin the! shall be observed& and
s"bsidiarily& the provisions of this Title. (13/'a)

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Art. 212*. #nly the followin property !ay be the ob.ect of a contract of !ortae<
(1) (!!ovables8
(2) Alienable real rihts in accordance with the laws& i!posed "pon i!!ovables.
6evertheless& !ovables !ay be the ob.ect of a chattel !ortae. (13/*a)
Art. 212+. (n addition to the re0"isites stated in Article 273+& it is indispensable& in order that a
!ortae !ay be validly constit"ted& that the doc"!ent in which it appears be recorded in the
-eistry of Property. (f the instr"!ent is not recorded& the !ortae is nevertheless bindin
between the parties.
The persons in whose favor the law establishes a !ortae have no other riht than to de!and the
e)ec"tion and the recordin of the doc"!ent in which the !ortae is for!ali%ed. (13/+a)
Art. 212,. The !ortae directly and i!!ediately s"b.ects the property "pon which it is i!posed&
whoever the possessor !ay be& to the f"lfill!ent of the obliation for whose sec"rity it was
constit"ted. (13/,)
Art. 212/. The !ortae e)tends to the nat"ral accessions& to the i!prove!ents& rowin fr"its&
and the rents or inco!e not yet received when the obliation beco!es d"e& and to the a!o"nt of
the inde!nity ranted or owin to the proprietor fro! the ins"rers of the property !ortaed& or in
virt"e of e)propriation for p"blic "se& with the declarations& a!plifications and li!itations
established by law& whether the estate re!ains in the possession of the !ortaor& or it passes into
the hands of a third person. (13//)
Art. 2123. The !ortae credit !ay be alienated or assined to a third person& in whole or in part&
with the for!alities re0"ired by law. (13/3)
Art. 2125. The creditor !ay clai! fro! a third person in possession of the !ortaed property& the
pay!ent of the part of the credit sec"red by the property which said third person possesses& in the
ter!s and with the for!alities which the law establishes. (13/5)
Art. 21'7. A stip"lation forbiddin the owner fro! alienatin the i!!ovable !ortaed shall be
void. (n)
Art. 21'1. The for!& e)tent and conse0"ences of a !ortae& both as to its constit"tion&
!odification and e)tin"ish!ent& and as to other !atters not incl"ded in this Chapter& shall be
overned by the provisions of the =ortae Law and of the Land -eistration Law. (1337a)

C9APT:- *
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Art. 21'2. By the contract of antichresis the creditor ac0"ires the riht to receive the fr"its of an
i!!ovable of his debtor& with the obliation to apply the! to the pay!ent of the interest& if owin&
and thereafter to the principal of his credit. (1331)
Art. 21''. The act"al !arket val"e of the fr"its at the ti!e of the application thereof to the interest
and principal shall be the !eas"re of s"ch application. (n)
Art. 21'*. The a!o"nt of the principal and of the interest shall be specified in writin8 otherwise&
the contract of antichresis shall be void. (n)
Art. 21'+. The creditor& "nless there is a stip"lation to the contrary& is oblied to pay the ta)es and
chares "pon the estate.
9e is also bo"nd to bear the e)penses necessary for its preservation and repair.
The s"!s spent for the p"rposes stated in this article shall be ded"cted fro! the fr"its. (1332)
Art. 21',. The debtor cannot reac0"ire the en.oy!ent of the i!!ovable witho"t first havin totally
paid what he owes the creditor.
B"t the latter& in order to e)e!pt hi!self fro! the obliations i!posed "pon hi! by the precedin
article& !ay always co!pel the debtor to enter aain "pon the en.oy!ent of the property& e)cept
when there is a stip"lation to the contrary. (133')
Art. 21'/. The creditor does not ac0"ire the ownership of the real estate for non1pay!ent of the
debt within the period areed "pon.
:very stip"lation to the contrary shall be void. B"t the creditor !ay petition the co"rt for the
pay!ent of the debt or the sale of the real property. (n this case& the -"les of Co"rt on the
foreclos"re of !ortaes shall apply. (133*a)
Art. 21'3. The contractin parties !ay stip"late that the interest "pon the debt be co!pensated
with the fr"its of the property which is the ob.ect of the antichresis& provided that if the val"e of the
fr"its sho"ld e)ceed the a!o"nt of interest allowed by the laws aainst "s"ry& the e)cess shall be
applied to the principal. (133+a)
Art. 21'5. The last pararaph of Article 273+& and Articles 2735 to 2751 are applicable to this
contract. (133,a)

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Art. 21*7. By a chattel !ortae& personal property is recorded in the Chattel =ortae -eister as
a sec"rity for the perfor!ance of an obliation. (f the !ovable& instead of bein recorded& is
delivered to the creditor or a third person& the contract is a plede and not a chattel !ortae. (n)
Art. 21*1. The provisions of this Code on plede& insofar as they are not in conflict with the
Chattel =ortae Law shall be applicable to chattel !ortaes. (n)

Title E>((. 1 :ET-A1C#6T-ACT?AL #BL($AT(#6@

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Art. 21*2. Certain lawf"l& vol"ntary and "nilateral acts ive rise to the ."ridical relation of 0"asi1
contract to the end that no one shall be "n."stly enriched or benefited at the e)pense of another. (n)
Art. 21*'. The provisions for 0"asi1contracts in this Chapter do not e)cl"de other 0"asi1contracts
which !ay co!e within the p"rview of the precedin article. (n)

@:CT(#6 1. 1 6eotior"! $estio

Art. 21**. 2hoever vol"ntarily takes chare of the aency or !anae!ent of the b"siness or
property of another& witho"t any power fro! the latter& is oblied to contin"e the sa!e "ntil the
ter!ination of the affair and its incidents& or to re0"ire the person concerned to s"bstit"te hi!& if
the owner is in a position to do so. This ."ridical relation does not arise in either of these instances<
(1) 2hen the property or b"siness is not nelected or abandoned8
(2) (f in fact the !anaer has been tacitly a"thori%ed by the owner.
(n the first case& the provisions of Articles 1'1/& 1*7'& 6o. 1& and 1*7* reardin "na"thori%ed
contracts shall overn.
(n the second case& the r"les on aency in Title E of this Book shall be applicable. (1333a)
Art. 21*+. The officio"s !anaer shall perfor! his d"ties with all the dilience of a ood father of
a fa!ily& and pay the da!aes which thro"h his fa"lt or nelience !ay be s"ffered by the owner
of the property or b"siness "nder !anae!ent.
The co"rts !ay& however& increase or !oderate the inde!nity accordin to the circ"!stances of
each case. (1335a)
Art. 21*,. (f the officio"s !anaer deleates to another person all or so!e of his d"ties& he shall be
liable for the acts of the deleate& witho"t pre."dice to the direct obliation of the latter toward the
owner of the b"siness.
The responsibility of two or !ore officio"s !anaers shall be solidary& "nless the !anae!ent was
ass"!ed to save the thin or b"siness fro! i!!inent daner. (1357a)
Art. 21*/. The officio"s !anaer shall be liable for any fort"ito"s event<
(1) (f he "ndertakes risky operations which the owner was not acc"sto!ed to e!bark "pon8
(2) (f he has preferred his own interest to that of the owner8
(') (f he fails to ret"rn the property or b"siness after de!and by the owner8
(*) (f he ass"!ed the !anae!ent in bad faith. (1351a)
Art. 21*3. :)cept when the !anae!ent was ass"!ed to save property or b"siness fro! i!!inent
daner& the officio"s !anaer shall be liable for fort"ito"s events<
(1) (f he is !anifestly "nfit to carry on the !anae!ent8
(2) (f by his intervention he prevented a !ore co!petent person fro! takin "p the !anae!ent.
(n)
Art. 21*5. The ratification of the !anae!ent by the owner of the b"siness prod"ces the effects of
an e)press aency& even if the b"siness !ay not have been s"ccessf"l. (1352a)
Art. 21+7. Altho"h the officio"s !anae!ent !ay not have been e)pressly ratified& the owner of
the property or b"siness who en.oys the advantaes of the sa!e shall be liable for obliations
inc"rred in his interest& and shall rei!b"rse the officio"s !anaer for the necessary and "sef"l
e)penses and for the da!aes which the latter !ay have s"ffered in the perfor!ance of his d"ties.
The sa!e obliation shall be inc"!bent "pon hi! when the !anae!ent had for its p"rpose the
prevention of an i!!inent and !anifest loss& altho"h no benefit !ay have been derived. (135')
Art. 21+1. :ven tho"h the owner did not derive any benefit and there has been no i!!inent and
!anifest daner to the property or b"siness& the owner is liable as "nder the first pararaph of the
precedin article& provided<
(1) The officio"s !anaer has acted in ood faith& and
(2) The property or b"siness is intact& ready to be ret"rned to the owner. (n)
Art. 21+2. The officio"s !anaer is personally liable for contracts which he has entered into with
third persons& even tho"h he acted in the na!e of the owner& and there shall be no riht of action
between the owner and third persons. These provisions shall not apply<
(1) (f the owner has e)pressly or tacitly ratified the !anae!ent& or
(2) 2hen the contract refers to thins pertainin to the owner of the b"siness. (n)
Art. 21+'. The !anae!ent is e)tin"ished<
(1) 2hen the owner rep"diates it or p"ts an end thereto8
(2) 2hen the officio"s !anaer withdraws fro! the !anae!ent& s"b.ect to the provisions of
Article 21**8
(') By the death& civil interdiction& insanity or insolvency of the owner or the officio"s !anaer.
(n)

@:CT(#6 2. 1 @ol"tio (ndebiti

Art. 21+*. (f so!ethin is received when there is no riht to de!and it& and it was "nd"ly delivered
thro"h !istake& the obliation to ret"rn it arises. (135+)
Art. 21++. Pay!ent by reason of a !istake in the constr"ction or application of a do"btf"l or
diffic"lt 0"estion of law !ay co!e within the scope of the precedin article. (n)
Art. 21+,. (f the payer was in do"bt whether the debt was d"e& he !ay recover if he proves that it
was not d"e. (n)
Art. 21+/. The responsibility of two or !ore payees& when there has been pay!ent of what is not
d"e& is solidary. (n)
Art. 21+3. 2hen the property delivered or !oney paid belons to a third person& the payee shall
co!ply with the provisions of article 153*. (n)
Art. 21+5. 2hoever in bad faith accepts an "nd"e pay!ent& shall pay leal interest if a s"! of
!oney is involved& or shall be liable for fr"its received or which sho"ld have been received if the
thin prod"ces fr"its.
9e shall f"rther!ore be answerable for any loss or i!pair!ent of the thin fro! any ca"se& and for
da!aes to the person who delivered the thin& "ntil it is recovered. (135,a)
Art. 21,7. 9e who in ood faith accepts an "nd"e pay!ent of a thin certain and deter!inate shall
only be responsible for the i!pair!ent or loss of the sa!e or its accessories and accessions insofar
as he has thereby been benefited. (f he has alienated it& he shall ret"rn the price or assin the action
to collect the s"!. (135/)
Art. 21,1. As reards the rei!b"rse!ent for i!prove!ents and e)penses inc"rred by hi! who
"nd"ly received the thin& the provisions of Title > of Book (( shall overn. (1353)
Art. 21,2. 9e shall be e)e!pt fro! the obliation to restore who& believin in ood faith that the
pay!ent was bein !ade of a leiti!ate and s"bsistin clai!& destroyed the doc"!ent& or allowed
the action to prescribe& or ave "p the pledes& or cancelled the "aranties for his riht. 9e who
paid "nd"ly !ay proceed only aainst the tr"e debtor or the "arantors with reard to who! the
action is still effective. (1355)
Art. 21,'. (t is pres"!ed that there was a !istake in the pay!ent if so!ethin which had never
been d"e or had already been paid was delivered8 b"t he fro! who! the ret"rn is clai!ed !ay
prove that the delivery was !ade o"t of liberality or for any other ."st ca"se. (1571)

@:CT(#6 '. 1 #ther I"asi1Contracts

Art. 21,*. 2hen& witho"t the knowlede of the person oblied to ive s"pport& it is iven by a
straner& the latter shall have a riht to clai! the sa!e fro! the for!er& "nless it appears that he
ave it o"t of piety and witho"t intention of bein repaid. (135*a)
Art. 21,+. 2hen f"neral e)penses are borne by a third person& witho"t the knowlede of those
relatives who were oblied to ive s"pport to the deceased& said relatives shall rei!b"rse the third
person& sho"ld the latter clai! rei!b"rse!ent. (135*a)
Art. 21,,. 2hen the person oblied to s"pport an orphan& or an insane or other indient person
"n."stly ref"ses to ive s"pport to the latter& any third person !ay f"rnish s"pport to the needy
individ"al& with riht of rei!b"rse!ent fro! the person oblied to ive s"pport. The provisions of
this article apply when the father or !other of a child "nder eihteen years of ae "n."stly ref"ses
to s"pport hi!.
Art. 21,/. 2hen thro"h an accident or other ca"se a person is in."red or beco!es serio"sly ill&
and he is treated or helped while he is not in a condition to ive consent to a contract& he shall be
liable to pay for the services of the physician or other person aidin hi!& "nless the service has
been rendered o"t of p"re enerosity.
Art. 21,3. 2hen d"rin a fire& flood& stor!& or other cala!ity& property is saved fro! destr"ction
by another person witho"t the knowlede of the owner& the latter is bo"nd to pay the for!er ."st
co!pensation.
Art. 21,5. 2hen the overn!ent& "pon the fail"re of any person to co!ply with health or safety
re"lations concernin property& "ndertakes to do the necessary work& even over his ob.ection& he
shall be liable to pay the e)penses.
Art. 21/7. 2hen by accident or other fort"ito"s event& !ovables separately pertainin to two or
!ore persons are co!!inled or conf"sed& the r"les on co1ownership shall be applicable.
Art. 21/1. The rihts and obliations of the finder of lost personal property shall be overned by
Articles /15 and /27.
Art. 21/2. The riht of every possessor in ood faith to rei!b"rse!ent for necessary and "sef"l
e)penses is overned by Article +*,.
Art. 21/'. 2hen a third person& witho"t the knowlede of the debtor& pays the debt& the rihts of
the for!er are overned by Articles 12', and 12'/.
Art. 21/*. 2hen in a s!all co!!"nity a nationality of the inhabitants of ae decide "pon a
!eas"re for protection aainst lawlessness& fire& flood& stor! or other cala!ity& any one who
ob.ects to the plan and ref"ses to contrib"te to the e)penses b"t is benefited by the pro.ect as
e)ec"ted shall be liable to pay his share of said e)penses.
Art. 21/+. Any person who is constrained to pay the ta)es of another shall be entitled to
rei!b"rse!ent fro! the latter.

C9APT:- 2
I?A@(1D:L(CT@

Art. 21/,. 2hoever by act or o!ission ca"ses da!ae to another& there bein fa"lt or nelience&
is oblied to pay for the da!ae done. @"ch fa"lt or nelience& if there is no pre1e)istin
contract"al relation between the parties& is called a 0"asi1delict and is overned by the provisions
of this Chapter. (1572a)
Art. 21//. -esponsibility for fa"lt or nelience "nder the precedin article is entirely separate and
distinct fro! the civil liability arisin fro! nelience "nder the Penal Code. B"t the plaintiff
cannot recover da!aes twice for the sa!e act or o!ission of the defendant. (n)
Art. 21/3. The provisions of Articles 11/2 to 11/* are also applicable to a 0"asi1delict. (n)
Art. 21/5. 2hen the plaintiff;s own nelience was the i!!ediate and pro)i!ate ca"se of his
in."ry& he cannot recover da!aes. B"t if his nelience was only contrib"tory& the i!!ediate and
pro)i!ate ca"se of the in."ry bein the defendant;s lack of d"e care& the plaintiff !ay recover
da!aes& b"t the co"rts shall !itiate the da!aes to be awarded. (n)
Art. 2137. The obliation i!posed by Article 21/, is de!andable not only for one;s own acts or
o!issions& b"t also for those of persons for who! one is responsible.
The father and& in case of his death or incapacity& the !other& are responsible for the da!aes
ca"sed by the !inor children who live in their co!pany.
$"ardians are liable for da!aes ca"sed by the !inors or incapacitated persons who are "nder
their a"thority and live in their co!pany.
The owners and !anaers of an establish!ent or enterprise are likewise responsible for da!aes
ca"sed by their e!ployees in the service of the branches in which the latter are e!ployed or on the
occasion of their f"nctions.
:!ployers shall be liable for the da!aes ca"sed by their e!ployees and ho"sehold helpers actin
within the scope of their assined tasks& even tho"h the for!er are not enaed in any b"siness or
ind"stry.
The @tate is responsible in like !anner when it acts thro"h a special aent8 b"t not when the
da!ae has been ca"sed by the official to who! the task done properly pertains& in which case
what is provided in Article 21/, shall be applicable.
Lastly& teachers or heads of establish!ents of arts and trades shall be liable for da!aes ca"sed by
their p"pils and st"dents or apprentices& so lon as they re!ain in their c"stody.
The responsibility treated of in this article shall cease when the persons herein !entioned prove
that they observed all the dilience of a ood father of a fa!ily to prevent da!ae. (157'a)
Art. 2131. 2hoever pays for the da!ae ca"sed by his dependents or e!ployees !ay recover fro!
the latter what he has paid or delivered in satisfaction of the clai!. (157*)
Art. 2132. (f the !inor or insane person ca"sin da!ae has no parents or "ardian& the !inor or
insane person shall be answerable with his own property in an action aainst hi! where a "ardian
ad lite! shall be appointed. (n)
Art. 213'. The possessor of an ani!al or whoever !ay !ake "se of the sa!e is responsible for the
da!ae which it !ay ca"se& altho"h it !ay escape or be lost. This responsibility shall cease only
in case the da!ae sho"ld co!e fro! force !a.e"re or fro! the fa"lt of the person who has
s"ffered da!ae. (157+)
Art. 213*. (n !otor vehicle !ishaps& the owner is solidarily liable with his driver& if the for!er&
who was in the vehicle& co"ld have& by the "se of the d"e dilience& prevented the !isfort"ne. (t is
disp"tably pres"!ed that a driver was nelient& if he had been fo"nd "ilty or reckless drivin or
violatin traffic re"lations at least twice within the ne)t precedin two !onths.
(f the owner was not in the !otor vehicle& the provisions of Article 2137 are applicable. (n)
Art. 213+. ?nless there is proof to the contrary& it is pres"!ed that a person drivin a !otor vehicle
has been nelient if at the ti!e of the !ishap& he was violatin any traffic re"lation. (n)
Art. 213,. :very owner of a !otor vehicle shall file with the proper overn!ent office a bond
e)ec"ted by a overn!ent1controlled corporation or office& to answer for da!aes to third persons.
The a!o"nt of the bond and other ter!s shall be fi)ed by the co!petent p"blic official. (n)
Art. 213/. =an"fact"rers and processors of foodst"ffs& drinks& toilet articles and si!ilar oods
shall be liable for death or in."ries ca"sed by any no)io"s or har!f"l s"bstances "sed& altho"h no
contract"al relation e)ists between the! and the cons"!ers. (n)
Art. 2133. There is pri!a facie pres"!ption of nelience on the part of the defendant if the death
or in."ry res"lts fro! his possession of danero"s weapons or s"bstances& s"ch as firear!s and
poison& e)cept when the possession or "se thereof is indispensable in his occ"pation or b"siness.
(n)
Art. 2135. Provinces& cities and !"nicipalities shall be liable for da!aes for the death of& or
in."ries s"ffered by& any person by reason of the defective condition of roads& streets& brides&
p"blic b"ildins& and other p"blic works "nder their control or s"pervision. (n)
Art. 2157. The proprietor of a b"ildin or str"ct"re is responsible for the da!aes res"ltin fro! its
total or partial collapse& if it sho"ld be d"e to the lack of necessary repairs. (157/)
Art. 2151. Proprietors shall also be responsible for da!aes ca"sed<
(1) By the e)plosion of !achinery which has not been taken care of with d"e dilience& and the
infla!!ation of e)plosive s"bstances which have not been kept in a safe and ade0"ate place8
(2) By e)cessive s!oke& which !ay be har!f"l to persons or property8
(') By the fallin of trees sit"ated at or near hihways or lanes& if not ca"sed by force !a.e"re8
(*) By e!anations fro! t"bes& canals& sewers or deposits of infectio"s !atter& constr"cted witho"t
preca"tions s"itable to the place. (1573)
Art. 2152. (f da!ae referred to in the two precedin articles sho"ld be the res"lt of any defect in
the constr"ction !entioned in Article 1/2'& the third person s"fferin da!aes !ay proceed only
aainst the enineer or architect or contractor in accordance with said article& within the period
therein fi)ed. (1575)
Art. 215'. The head of a fa!ily that lives in a b"ildin or a part thereof& is responsible for da!aes
ca"sed by thins thrown or fallin fro! the sa!e. (1517)
Art. 215*. The responsibility of two or !ore persons who are liable for 0"asi1delict is solidary. (n)

Title E>(((. 1 DA=A$:@

C9APT:- 1
$:6:-AL P-#>(@(#6@

Art. 215+. The provisions of this Title shall be respectively applicable to all obliations !entioned
in Article 11+/.
Art. 215,. The r"les "nder this Title are witho"t pre."dice to special provisions on da!aes
for!"lated elsewhere in this Code. Co!pensation for work!en and other e!ployees in case of
death& in."ry or illness is re"lated by special laws. -"les overnin da!aes laid down in other
laws shall be observed insofar as they are not in conflict with this Code.
Art. 215/. Da!aes !ay be<
(1) Act"al or co!pensatory8
(2) =oral8
(') 6o!inal8
(*) Te!perate or !oderate8
(+) Li0"idated8 or
(,) :)e!plary or corrective.
Art. 2153. The principles of the eneral law on da!aes are hereby adopted insofar as they are not
inconsistent with this Code.

C9APT:- 2
ACT?AL #- C#=P:6@AT#-F DA=A$:@

Art. 2155. :)cept as provided by law or by stip"lation& one is entitled to an ade0"ate co!pensation
only for s"ch pec"niary loss s"ffered by hi! as he has d"ly proved. @"ch co!pensation is referred
to as act"al or co!pensatory da!aes.
Art. 2277. (nde!nification for da!aes shall co!prehend not only the val"e of the loss s"ffered&
b"t also that of the profits which the obliee failed to obtain. (117,)
Art. 2271. (n contracts and 0"asi1contracts& the da!aes for which the oblior who acted in ood
faith is liable shall be those that are the nat"ral and probable conse0"ences of the breach of the
obliation& and which the parties have foreseen or co"ld have reasonably foreseen at the ti!e the
obliation was constit"ted.
(n case of fra"d& bad faith& !alice or wanton attit"de& the oblior shall be responsible for all
da!aes which !ay be reasonably attrib"ted to the non1perfor!ance of the obliation. (117/a)
Art. 2272. (n cri!es and 0"asi1delicts& the defendant shall be liable for all da!aes which are the
nat"ral and probable conse0"ences of the act or o!ission co!plained of. (t is not necessary that
s"ch da!aes have been foreseen or co"ld have reasonably been foreseen by the defendant.
Art. 227'. The party s"fferin loss or in."ry !"st e)ercise the dilience of a ood father of a
fa!ily to !ini!i%e the da!aes res"ltin fro! the act or o!ission in 0"estion.
Art. 227*. (n cri!es& the da!aes to be ad."dicated !ay be respectively increased or lessened
accordin to the aravatin or !itiatin circ"!stances.
Art. 227+. Da!aes !ay be recovered<
(1) Aor loss or i!pair!ent of earnin capacity in cases of te!porary or per!anent personal in."ry8
(2) Aor in."ry to the plaintiff;s b"siness standin or co!!ercial credit.
Art. 227,. The a!o"nt of da!aes for death ca"sed by a cri!e or 0"asi1delict shall be at least three
tho"sand pesos& even tho"h there !ay have been !itiatin circ"!stances. (n addition<
(1) The defendant shall be liable for the loss of the earnin capacity of the deceased& and the
inde!nity shall be paid to the heirs of the latter8 s"ch inde!nity shall in every case be assessed and
awarded by the co"rt& "nless the deceased on acco"nt of per!anent physical disability not ca"sed
by the defendant& had no earnin capacity at the ti!e of his death8
(2) (f the deceased was oblied to ive s"pport accordin to the provisions of Article 251& the
recipient who is not an heir called to the decedent;s inheritance by the law of testate or intestate
s"ccession& !ay de!and s"pport fro! the person ca"sin the death& for a period not e)ceedin five
years& the e)act d"ration to be fi)ed by the co"rt8
(') The spo"se& leiti!ate and illeiti!ate descendants and ascendants of the deceased !ay
de!and !oral da!aes for !ental an"ish by reason of the death of the deceased.
Art. 227/. (f the plaintiff;s property has been ins"red& and he has received inde!nity fro! the
ins"rance co!pany for the in."ry or loss arisin o"t of the wron or breach of contract co!plained
of& the ins"rance co!pany shall be s"broated to the rihts of the ins"red aainst the wrondoer or
the person who has violated the contract. (f the a!o"nt paid by the ins"rance co!pany does not
f"lly cover the in."ry or loss& the arieved party shall be entitled to recover the deficiency fro!
the person ca"sin the loss or in."ry.
Art. 2273. (n the absence of stip"lation& attorney;s fees and e)penses of litiation& other than
."dicial costs& cannot be recovered& e)cept<
(1) 2hen e)e!plary da!aes are awarded8
(2) 2hen the defendant;s act or o!ission has co!pelled the plaintiff to litiate with third persons
or to inc"r e)penses to protect his interest8
(') (n cri!inal cases of !alicio"s prosec"tion aainst the plaintiff8
(*) (n case of a clearly "nfo"nded civil action or proceedin aainst the plaintiff8
(+) 2here the defendant acted in ross and evident bad faith in ref"sin to satisfy the plaintiff;s
plainly valid& ."st and de!andable clai!8
(,) (n actions for leal s"pport8
(/) (n actions for the recovery of waes of ho"sehold helpers& laborers and skilled workers8
(3) (n actions for inde!nity "nder work!en;s co!pensation and e!ployer;s liability laws8
(5) (n a separate civil action to recover civil liability arisin fro! a cri!e8
(17) 2hen at least do"ble ."dicial costs are awarded8
(11) (n any other case where the co"rt dee!s it ."st and e0"itable that attorney;s fees and e)penses
of litiation sho"ld be recovered.
(n all cases& the attorney;s fees and e)penses of litiation !"st be reasonable.
Art. 2275. (f the obliation consists in the pay!ent of a s"! of !oney& and the debtor inc"rs in
delay& the inde!nity for da!aes& there bein no stip"lation to the contrary& shall be the pay!ent of
the interest areed "pon& and in the absence of stip"lation& the leal interest& which is si) per cent
per ann"!. (1173)
Art. 2217. (nterest !ay& in the discretion of the co"rt& be allowed "pon da!aes awarded for breach
of contract.
Art. 2211. (n cri!es and 0"asi1delicts& interest as a part of the da!aes !ay& in a proper case& be
ad."dicated in the discretion of the co"rt.
Art. 2212. (nterest d"e shall earn leal interest fro! the ti!e it is ."dicially de!anded& altho"h the
obliation !ay be silent "pon this point. (1175a)
Art. 221'. (nterest cannot be recovered "pon "nli0"idated clai!s or da!aes& e)cept when the
de!and can be established with reasonably certainty.
Art. 221*. (n 0"asi1delicts& the contrib"tory nelience of the plaintiff shall red"ce the da!aes
that he !ay recover.
Art. 221+. (n contracts& 0"asi1contracts& and 0"asi1delicts& the co"rt !ay e0"itably !itiate the
da!aes "nder circ"!stances other than the case referred to in the precedin article& as in the
followin instances<
(1) That the plaintiff hi!self has contravened the ter!s of the contract8
(2) That the plaintiff has derived so!e benefit as a res"lt of the contract8
(') (n cases where e)e!plary da!aes are to be awarded& that the defendant acted "pon the advice
of co"nsel8
(*) That the loss wo"ld have res"lted in any event8
(+) That since the filin of the action& the defendant has done his best to lessen the plaintiff;s loss or
in."ry.
C9APT:- '
#T9:- G(6D@ #A DA=A$:@

Art. 221,. 6o proof of pec"niary loss is necessary in order that !oral& no!inal& te!perate&
li0"idated or e)e!plary da!aes& !ay be ad."dicated. The assess!ent of s"ch da!aes& e)cept
li0"idated ones& is left to the discretion of the co"rt& accordin to the circ"!stances of each case.

@:CT(#6 1. 1 =oral Da!aes

Art. 221/. =oral da!aes incl"de physical s"fferin& !ental an"ish& friht& serio"s an)iety&
bes!irched rep"tation& wo"nded feelins& !oral shock& social h"!iliation& and si!ilar in."ry.
Tho"h incapable of pec"niary co!p"tation& !oral da!aes !ay be recovered if they are the
pro)i!ate res"lt of the defendant;s wronf"l act for o!ission.
Art. 2213. (n the ad."dication of !oral da!aes& the senti!ental val"e of property& real or personal&
!ay be considered.
Art. 2215. =oral da!aes !ay be recovered in the followin and analoo"s cases<
(1) A cri!inal offense res"ltin in physical in."ries8
(2) I"asi1delicts ca"sin physical in."ries8
(') @ed"ction& abd"ction& rape& or other lascivio"s acts8
(*) Ad"ltery or conc"binae8
(+) (lleal or arbitrary detention or arrest8
(,) (lleal search8
(/) Libel& slander or any other for! of defa!ation8
(3) =alicio"s prosec"tion8
(5) Acts !entioned in Article '758
(17) Acts and actions referred to in Articles 21& 2,& 2/& 23& 25& '7& '2& '*& and '+.
The parents of the fe!ale sed"ced& abd"cted& raped& or ab"sed& referred to in 6o. ' of this article&
!ay also recover !oral da!aes.
The spo"se& descendants& ascendants& and brothers and sisters !ay brin the action !entioned in
6o. 5 of this article& in the order na!ed.
Art. 2227. 2illf"l in."ry to property !ay be a leal ro"nd for awardin !oral da!aes if the
co"rt sho"ld find that& "nder the circ"!stances& s"ch da!aes are ."stly d"e. The sa!e r"le applies
to breaches of contract where the defendant acted fra"d"lently or in bad faith.

@:CT(#6 2. 1 6o!inal Da!aes

Art. 2221. 6o!inal da!aes are ad."dicated in order that a riht of the plaintiff& which has been
violated or invaded by the defendant& !ay be vindicated or reconi%ed& and not for the p"rpose of
inde!nifyin the plaintiff for any loss s"ffered by hi!.
Art. 2222. The co"rt !ay award no!inal da!aes in every obliation arisin fro! any so"rce
en"!erated in Article 11+/& or in every case where any property riht has been invaded.
Art. 222'. The ad."dication of no!inal da!aes shall precl"de f"rther contest "pon the riht
involved and all accessory 0"estions& as between the parties to the s"it& or their respective heirs and
assins.

@:CT(#6 '. 1 Te!perate or =oderate Da!aes

Art. 222*. Te!perate or !oderate da!aes& which are !ore than no!inal b"t less than
co!pensatory da!aes& !ay be recovered when the co"rt finds that so!e pec"niary loss has been
s"ffered b"t its a!o"nt can not& fro! the nat"re of the case& be provided with certainty.
Art. 222+. Te!perate da!aes !"st be reasonable "nder the circ"!stances.

@:CT(#6 *. 1 Li0"idated Da!aes

Art. 222,. Li0"idated da!aes are those areed "pon by the parties to a contract& to be paid in case
of breach thereof.
Art. 222/. Li0"idated da!aes& whether intended as an inde!nity or a penalty& shall be e0"itably
red"ced if they are ini0"ito"s or "nconscionable.
Art. 2223. 2hen the breach of the contract co!!itted by the defendant is not the one conte!plated
by the parties in areein "pon the li0"idated da!aes& the law shall deter!ine the !eas"re of
da!aes& and not the stip"lation.

@:CT(#6 +. 1 :)e!plary or Corrective Da!aes

Art. 2225. :)e!plary or corrective da!aes are i!posed& by way of e)a!ple or correction for the
p"blic ood& in addition to the !oral& te!perate& li0"idated or co!pensatory da!aes.
Art. 22'7. (n cri!inal offenses& e)e!plary da!aes as a part of the civil liability !ay be i!posed
when the cri!e was co!!itted with one or !ore aravatin circ"!stances. @"ch da!aes are
separate and distinct fro! fines and shall be paid to the offended party.
Art. 22'1. (n 0"asi1delicts& e)e!plary da!aes !ay be ranted if the defendant acted with ross
nelience.
Art. 22'2. (n contracts and 0"asi1contracts& the co"rt !ay award e)e!plary da!aes if the
defendant acted in a wanton& fra"d"lent& reckless& oppressive& or !alevolent !anner.
Art. 22''. :)e!plary da!aes cannot be recovered as a !atter of riht8 the co"rt will decide
whether or not they sho"ld be ad."dicated.
Art. 22'*. 2hile the a!o"nt of the e)e!plary da!aes need not be proved& the plaintiff !"st show
that he is entitled to !oral& te!perate or co!pensatory da!aes before the co"rt !ay consider the
0"estion of whether or not e)e!plary da!aes sho"ld be awarded. (n case li0"idated da!aes
have been areed "pon& altho"h no proof of loss is necessary in order that s"ch li0"idated
da!aes !ay be recovered& nevertheless& before the co"rt !ay consider the 0"estion of rantin
e)e!plary in addition to the li0"idated da!aes& the plaintiff !"st show that he wo"ld be entitled
to !oral& te!perate or co!pensatory da!aes were it not for the stip"lation for li0"idated
da!aes.
Art. 22'+. A stip"lation whereby e)e!plary da!aes are reno"nced in advance shall be n"ll and
void.

Title E(E. 1 C#6C?--:6C: A6D P-:A:-:6C:
#A C-:D(T@

C9APT:- 1
$:6:-AL P-#>(@(#6@

Art. 22',. The debtor is liable with all his property& present and f"t"re& for the f"lfill!ent of his
obliations& s"b.ect to the e)e!ptions provided by law. (1511a)
Art. 22'/. (nsolvency shall be overned by special laws insofar as they are not inconsistent with
this Code. (n)
Art. 22'3. @o lon as the con."al partnership or absol"te co!!"nity s"bsists& its property shall
not be a!on the assets to be taken possession of by the assinee for the pay!ent of the insolvent
debtor;s obliations& e)cept insofar as the latter have redo"nded to the benefit of the fa!ily. (f it is
the h"sband who is insolvent& the ad!inistration of the con."al partnership of absol"te co!!"nity
!ay& by order of the co"rt& be transferred to the wife or to a third person other than the assinee. (n)
Art. 22'5. (f there is property& other than that !entioned in the precedin article& owned by two or
!ore persons& one of who! is the insolvent debtor& his "ndivided share or interest therein shall be
a!on the assets to be taken possession of by the assinee for the pay!ent of the insolvent debtor;s
obliations. (n)
Art. 22*7. Property held by the insolvent debtor as a tr"stee of an e)press or i!plied tr"st& shall be
e)cl"ded fro! the insolvency proceedins. (n)

C9APT:- 2
CLA@@(A(CAT(#6 #A C-:D(T@

Art. 22*1. 2ith reference to specific !ovable property of the debtor& the followin clai!s or liens
shall be preferred<
(1) D"ties& ta)es and fees d"e thereon to the @tate or any s"bdivision thereof8
(2) Clai!s arisin fro! !isappropriation& breach of tr"st& or !alfeasance by p"blic officials
co!!itted in the perfor!ance of their d"ties& on the !ovables& !oney or sec"rities obtained by
the!8
(') Clai!s for the "npaid price of !ovables sold& on said !ovables& so lon as they are in the
possession of the debtor& "p to the val"e of the sa!e8 and if the !ovable has been resold by the
debtor and the price is still "npaid& the lien !ay be enforced on the price8 this riht is not lost by
the i!!obili%ation of the thin by destination& provided it has not lost its for!& s"bstance and
identity8 neither is the riht lost by the sale of the thin toether with other property for a l"!p
s"!& when the price thereof can be deter!ined proportionally8
(*) Credits "aranteed with a plede so lon as the thins pleded are in the hands of the creditor&
or those "aranteed by a chattel !ortae& "pon the thins pleded or !ortaed& "p to the val"e
thereof8
(+) Credits for the !akin& repair& safekeepin or preservation of personal property& on the !ovable
th"s !ade& repaired& kept or possessed8
(,) Clai!s for laborers; waes& on the oods !an"fact"red or the work done8
(/) Aor e)penses of salvae& "pon the oods salvaed8
(3) Credits between the landlord and the tenant& arisin fro! the contract of tenancy on shares& on
the share of each in the fr"its or harvest8
(5) Credits for transportation& "pon the oods carried& for the price of the contract and incidental
e)penses& "ntil their delivery and for thirty days thereafter8
(17) Credits for lodin and s"pplies "s"ally f"rnished to travellers by hotel keepers& on the
!ovables belonin to the "est as lon as s"ch !ovables are in the hotel& b"t not for !oney
loaned to the "ests8
(11) Credits for seeds and e)penses for c"ltivation and harvest advanced to the debtor& "pon the
fr"its harvested8
(12) Credits for rent for one year& "pon the personal property of the lessee e)istin on the
i!!ovable leased and on the fr"its of the sa!e& b"t not on !oney or instr"!ents of credit8
(1') Clai!s in favor of the depositor if the depositary has wronf"lly sold the thin deposited&
"pon the price of the sale.
(n the foreoin cases& if the !ovables to which the lien or preference attaches have been
wronf"lly taken& the creditor !ay de!and the! fro! any possessor& within thirty days fro! the
"nlawf"l sei%"re. (1522a)
Art. 22*2. 2ith reference to specific i!!ovable property and real rihts of the debtor& the
followin clai!s& !ortaes and liens shall be preferred& and shall constit"te an enc"!brance on
the i!!ovable or real riht<
(1) Ta)es d"e "pon the land or b"ildin8
(2) Aor the "npaid price of real property sold& "pon the i!!ovable sold8
(') Clai!s of laborers& !asons& !echanics and other work!en& as well as of architects& enineers
and contractors& enaed in the constr"ction& reconstr"ction or repair of b"ildins& canals or other
works& "pon said b"ildins& canals or other works8
(*) Clai!s of f"rnishers of !aterials "sed in the constr"ction& reconstr"ction& or repair of b"ildins&
canals or other works& "pon said b"ildins& canals or other works8
(+) =ortae credits recorded in the -eistry of Property& "pon the real estate !ortaed8
(,) :)penses for the preservation or i!prove!ent of real property when the law a"thori%es
rei!b"rse!ent& "pon the i!!ovable preserved or i!proved8
(/) Credits annotated in the -eistry of Property& in virt"e of a ."dicial order& by attach!ents or
e)ec"tions& "pon the property affected& and only as to later credits8
(3) Clai!s of co1heirs for warranty in the partition of an i!!ovable a!on the!& "pon the real
property th"s divided8
(5) Clai!s of donors or real property for pec"niary chares or other conditions i!posed "pon the
donee& "pon the i!!ovable donated8
(17) Credits of ins"rers& "pon the property ins"red& for the ins"rance pre!i"! for two years.
(152'a)
Art. 22*'. The clai!s or credits en"!erated in the two precedin articles shall be considered as
!ortaes or pledes of real or personal property& or liens within the p"rview of leal provisions
overnin insolvency. Ta)es !entioned in 6o. 1& Article 22*1& and 6o. 1& Article 22*2& shall first
be satisfied. (n)
Art. 22**. 2ith reference to other property& real and personal& of the debtor& the followin clai!s or
credits shall be preferred in the order na!ed<
(1) Proper f"neral e)penses for the debtor& or children "nder his or her parental a"thority who have
no property of their own& when approved by the co"rt8
(2) Credits for services rendered the insolvent by e!ployees& laborers& or ho"sehold helpers for one
year precedin the co!!ence!ent of the proceedins in insolvency8
(') :)penses d"rin the last illness of the debtor or of his or her spo"se and children "nder his or
her parental a"thority& if they have no property of their own8
(*) Co!pensation d"e the laborers or their dependents "nder laws providin for inde!nity for
da!aes in cases of labor accident& or illness res"ltin fro! the nat"re of the e!ploy!ent8
(+) Credits and advance!ents !ade to the debtor for s"pport of hi!self or herself& and fa!ily&
d"rin the last year precedin the insolvency8
(,) @"pport d"rin the insolvency proceedins& and for three !onths thereafter8
(/) Aines and civil inde!nification arisin fro! a cri!inal offense8
(3) Leal e)penses& and e)penses inc"rred in the ad!inistration of the insolvent;s estate for the
co!!on interest of the creditors& when properly a"thori%ed and approved by the co"rt8
(5) Ta)es and assess!ents d"e the national overn!ent& other than those !entioned in Articles
22*1& 6o. 1& and 22*2& 6o. 18
(17) Ta)es and assess!ents d"e any province& other than those referred to in Articles 22*1& 6o. 1&
and 22*2& 6o. 18
(11) Ta)es and assess!ents d"e any city or !"nicipality& other than those indicated in Articles
22*1& 6o. 1& and 22*2& 6o. 18
(12) Da!aes for death or personal in."ries ca"sed by a 0"asi1delict8
(1') $ifts d"e to p"blic and private instit"tions of charity or beneficence8
(1*) Credits which& witho"t special privilee& appear in (a) a p"blic instr"!ent8 or (b) in a final
."d!ent& if they have been the s"b.ect of litiation. These credits shall have preference a!on
the!selves in the order of priority of the dates of the instr"!ents and of the ."d!ents&
respectively. (152*a)
Art. 22*+. Credits of any other kind or class& or by any other riht or title not co!prised in the fo"r
precedin articles& shall en.oy no preference. (152+)

C9APT:- '
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Art. 22*,. Those credits which en.oy preference with respect to specific !ovables& e)cl"de all
others to the e)tent of the val"e of the personal property to which the preference refers.
Art. 22*/. (f there are two or !ore credits with respect to the sa!e specific !ovable property& they
shall be satisfied pro rata& after the pay!ent of d"ties& ta)es and fees d"e the @tate or any
s"bdivision thereof. (152,a)
Art. 22*3. Those credits which en.oy preference in relation to specific real property or real rihts&
e)cl"de all others to the e)tent of the val"e of the i!!ovable or real riht to which the preference
refers.
Art. 22*5. (f there are two or !ore credits with respect to the sa!e specific real property or real
rihts& they shall be satisfied pro rata& after the pay!ent of the ta)es and assess!ents "pon the
i!!ovable property or real riht. (152/a)
Art. 22+7. The e)cess& if any& after the pay!ent of the credits which en.oy preference with respect
to specific property& real or personal& shall be added to the free property which the debtor !ay
have& for the pay!ent of the other credits. (1523a)
Art. 22+1. Those credits which do not en.oy any preference with respect to specific property& and
those which en.oy preference& as to the a!o"nt not paid& shall be satisfied accordin to the
followin r"les<
(1) (n the order established in Article 22**8
(2) Co!!on credits referred to in Article 22*+ shall be paid pro rata reardless of dates. (1525a)

T-A6@(T(#6AL P-#>(@(#6@

Art. 22+2. Chanes !ade and new provisions and r"les laid down by this Code which !ay
pre."dice or i!pair vested or ac0"ired rihts in accordance with the old leislation shall have no
retroactive effect.
Aor the deter!ination of the applicable law in cases which are not specified elsewhere in this Code&
the followin articles shall be observed< (Pars. 1 and 2& Transitional Provisions).
Art. 22+'. The Civil Code of 1335 and other previo"s laws shall overn rihts oriinatin& "nder
said laws& fro! acts done or events which took place "nder their rei!e& even tho"h this Code
!ay re"late the! in a different !anner& or !ay not reconi%e the!. B"t if a riht sho"ld be
declared for the first ti!e in this Code& it shall be effective at once& even tho"h the act or event
which ives rise thereto !ay have been done or !ay have occ"rred "nder prior leislation&
provided said new riht does not pre."dice or i!pair any vested or ac0"ired riht& of the sa!e
oriin. (-"le 1)
Art. 22+*. 6o vested or ac0"ired riht can arise fro! acts or o!issions which are aainst the law or
which infrine "pon the rihts of others. (n)
Art. 22++. The for!er laws shall re"late acts and contracts with a condition or period& which were
e)ec"ted or entered into before the effectivity of this Code& even tho"h the condition or period
!ay still be pendin at the ti!e this body of laws oes into effect. (n)
Art. 22+,. Acts and contracts "nder the rei!e of the old laws& if they are valid in accordance
therewith& shall contin"e to be f"lly operative as provided in the sa!e& with the li!itations
established in these r"les. B"t the revocation or !odification of these acts and contracts after the
beinnin of the effectivity of this Code& shall be s"b.ect to the provisions of this new body of
laws. (-"le 2a)
Art. 22+/. Provisions of this Code which attach a civil sanction or penalty or a deprivation of rihts
to acts or o!issions which were not penali%ed by the for!er laws& are not applicable to those who&
when said laws were in force& !ay have e)ec"ted the act or inc"rred in the o!ission forbidden or
conde!ned by this Code.
(f the fa"lt is also p"nished by the previo"s leislation& the less severe sanction shall be applied.
(f a contin"o"s or repeated act or o!ission was co!!enced before the beinnin of the effectivity
of this Code& and the sa!e s"bsists or is !aintained or repeated after this body of laws has beco!e
operative& the sanction or penalty prescribed in this Code shall be applied& even tho"h the
previo"s laws !ay not have provided any sanction or penalty therefor. (-"le 'a)
Art. 22+3. Actions and rihts which ca!e into bein b"t were not e)ercised before the effectivity
of this Code& shall re!ain in f"ll force in confor!ity with the old leislation8 b"t their e)ercise&
d"ration and the proced"re to enforce the! shall be re"lated by this Code and by the -"les of
Co"rt. (f the e)ercise of the riht or of the action was co!!enced "nder the old laws& b"t is
pendin on the date this Code takes effect& and the proced"re was different fro! that established in
this new body of laws& the parties concerned !ay choose which !ethod or co"rse to p"rs"e. (-"le
*)
Art. 22+5. The capacity of a !arried wo!an to e)ec"te acts and contracts is overned by this
Code& even if her !arriae was celebrated "nder the for!er laws. (n)
Art. 22,7. The vol"ntary reconition of a nat"ral child shall take place accordin to this Code&
even if the child was born before the effectivity of this body of laws. (n)
Art. 22,1. The e)e!ption prescribed in Article '72 shall also be applicable to any s"pport& pension
or rat"ity already e)istin or ranted before this Code beco!es effective. (n)
Art. 22,2. $"ardians of the property of !inors& appointed by the co"rts before this Code oes into
effect& shall contin"e to act as s"ch& notwithstandin the provisions of Article '27. (n)
Art. 22,'. -ihts to the inheritance of a person who died& with or witho"t a will& before the
effectivity of this Code& shall be overned by the Civil Code of 1335& by other previo"s laws& and
by the -"les of Co"rt. The inheritance of those who& with or witho"t a will& die after the beinnin
of the effectivity of this Code& shall be ad."dicated and distrib"ted in accordance with this new
body of laws and by the -"les of Co"rt8 b"t the testa!entary provisions shall be carried o"t insofar
as they !ay be per!itted by this Code. Therefore& leiti!es& better!ents& leacies and be0"ests
shall be respected8 however& their a!o"nt shall be red"ced if in no other !anner can every
co!p"lsory heir be iven his f"ll share accordin to this Code. (-"le 12a)
Art. 22,*. The stat"s and rihts of nat"ral children by leal fiction referred to in article 35 and
illeiti!ate children !entioned in Article 23/& shall also be ac0"ired by children born before the
effectivity of this Code. (n)
Art. 22,+. The riht of retention of real or personal property arisin after this Code beco!es
effective& incl"des those thins which ca!e into the creditor;s possession before said date. (n)
Art. 22,,. The followin shall have not only prospective b"t also retroactive effect<
(1) Article '1+& whereby a descendant cannot be co!pelled& in a cri!inal case& to testify aainst his
parents and ascendants8
(2) Articles 171 and 33& providin aainst coll"sion in cases of leal separation and ann"l!ent of
!arriae8
(') Articles 23'& 23*& and 235& concernin the proof of illeiti!ate filiation8
(*) Article 3'3& a"thori%in the probate of a will on petition of the testator hi!self8
(+) Articles 1'+5 to 1',5& relative to the refor!ation of instr"!ents8
(,) Articles */, to *31& re"latin actions to 0"iet title8
(/) Articles 2725 to 27'1& which are desined to pro!ote co!pro!ise. (n)
Art. 22,/. The followin provisions shall apply not only to f"t"re cases b"t also to those pendin
on the date this Code beco!es effective<
(1) Article 25& -elative to cri!inal prosec"tions wherein the acc"sed is ac0"itted on the ro"nd that
his "ilt has not been proved beyond reasonable do"bt8
(2) Article ''& concernin cases of defa!ation& fra"d& and physical in."ries. (n)
Art. 22,3. @"its between !e!bers of the sa!e fa!ily which are pendin at the ti!e this Code oes
into effect shall be s"spended& "nder s"ch ter!s as the co"rt !ay deter!ine& in order that
co!pro!ise !ay be earnestly so"ht& or& in case of leal separation proceedins& for the p"rpose of
effectin& if possible& a reconciliation. (n)
Art. 22,5. The principles "pon which the precedin transitional provisions are based shall& by
analoy& be applied to cases not specifically re"lated by the!. (-"le 1'a)

-:P:AL(6$ CLA?@:

Art. 22/7. The followin laws and re"lations are hereby repealed<
(1) Those parts and provisions of the Civil Code of 1335 which are in force on the date when this
new Civil Code beco!es effective<
(2) The provisions of the Code of Co!!erce overnin sales& partnership& aency& loan& deposit
and "aranty8
(') The provisions of the Code of Civil Proced"re on prescription as far as inconsistent with this
Code8 and
(*) All laws& Acts& parts of Acts& r"les of co"rt& e)ec"tive orders& and ad!inistrative re"lations
which are inconsistent with this Code. (n)
Approved& 4"ne 13& 15*5.