NEW CIVIL CODE

EFFECT AND APPLICATION OF

LAWS

LEX REI SITAE (2002 III-C)

General Rule: Real Property as well as
personal property is subject to the law
of the country where it is is located
EXCEPTION: (2ND PAR.)
In testate and testamentary
successions, it is the national law of
the person whose succession is under
consideration that shall be applied,
regardless of the nature and location
of the property, with respect to the
following:
1. order of sucession
2. amount of sucessional rights
3. intrinsic validity of will and
4. capacity to succeed.

- The forms and solemnities of

contracts, wills, and other public
instruments shall be governed by the
laws of the country in which they were
exectued. (par.1 )
- Probative laws concerning persons,
their acts or property, and those which
have for their object, public order,
public policy, and good customs shall
not be rendered ineffective by laws or
judgements promulgated, or by
determinations or conventions agreed
upon in a foreign country. (par.3)
- According to the doctine of lex loci
contractus, as a general rule, the law
of the place where a contract is made
or entered into governs with respect to
its nature and validity, obligation and
interpretation. This has been said to
be the rule even though the place
where the contract was made is
different from the place where it is to
be performed, and particularly so, if
the place of performance are the same
( In Zalanea v CA)

RENOVI DOCTIRNE
Literally means a "referring back", this
doctrine is usually pertinent where the
decedent is a national of one country,
and a domicile of another, and the
issue involved is with regard to :(a) the
order of succession; (b) the amount of
successional rights (c) the intrinsic
validity of the provisions of the will;
and (d) the capacity to succeed (Aznar
v Garcia)

LAWS GOVERNING THE FORMS

AND SOLEMNITIES OF
CONTRACTS/ LEX LOCI
CELEBTATIONIS (1992 XIV-a) (2002
III-B/ XIII-A/C)

FAMILY CODE
MARRIAGE
SOLEMNIEZED/DIVORCE OBTAINED
ABROAD (1992 I a-c/ 2002 III-a)
(par 1) VALIDITY OF MARRIAGES
SOLEMNIZED ABROAD
GENERAL RULE: Marriage solemnized
outside the Philippines is valid if
solemnized on accordance with the
laws of the country of celebration
EXCEPTIONS:
minors (Art. 35(1))
1. Bigamous or Polygamous
Marriages

2. those contracted through

mistake of one contracting party as to
the identity of the
other
3. subsequent marriages that
are void
4. marriages contracted by any
party who, at the time of celebration
was
psychologically
incapacitated
5. incestous marriages
6. those marriages that are void
for reason of public policy
(par 2) VALIDITY OF DIVORCE
OBTAINED ABROAD

1. The man and woman must

have been living together as husband
and wife for at least five years before
the marriage
2. The parties have no legal
impediment to marry each other
3. The fact of absence of legal
impediment between the parties must
be present at the time of marriage
4. The parties must execute an
affidavit that they have lived together
of at least five years.
5. The solemnizing officer must
execute a sworn statement that he
has ascertained the qualifications of
the parties and that he had found no
legal impediment to their marriage

RULE: A divorce validly obtained

abroad by the alien spouse,
capacitating him/her to remarry can
low the Filipino to remarry.

PSYCHOLOGICAL INCAPACITY AS A
MARRIAGE GROUN FOR NULILITY
OF MARRIAGE (2002 II-A,B,C)

The reckoning point is not the

citizenship of the parties at the time of
the celebration of their marriage, but
their citizenship at the time a valid
divorce is obtained abroad by the alien
spouse capacitating the latter to
remarry.

A marriage contracted by any party

who, at the time of the celebration,
was psychologically incapacitated to
comply with the essential marital
obligations of marriage, shall be void
even if such incapacity becomes
manifest only after its solemnization.

A foreign divorce can be recognized

here, provided the divorce decree is
proven as a fact and as valid under
the national law of the alien spouse.

Psychological incapacity must be

characterized by (a) gravity (b)
juridical antecedence and (c)
incurability.

LEGAL RATIFICATION OF
COHABITATION
Exempt from Marriage License
(2002, I-B)
Requisites:

Such graveness must be grave enough

to bring about the disability of the
party to assume the essential
obligations of marriage. Thus, "mild
characterological peculiarities, moods
changes occasional emotional
outbursts" cannot be accepted as root
causes. The Illness must be shown as
downright incapacity or inability, not a

refusal, neglect or difficulty, much less

ill will.
The other forms of psychoses, if
existing at the inception of marriage,
like the state of a party being of
unsound mind or concealment of drug
addiction, habitual alcoholism,
homosexuality or lesbianism, merely
renders the marriage contract
voidable pursuant to Art 46, Family
Code. If drug addiction, habitual
alcoholism, lesbianism, should only
occur during the marriage, that
become mere grounds for legal
separation under Art 55 of the Family
Code. These provisions of the code,
however, do not necessarily preclude
the possibility of these various
circumstances being themselves,
depending on the degree and severity
of the disorder, indicia of psychological
incapacity.

ACTION FOR DECLARATION OF

ABSOLUTE NULLITY (2002 X-B)
VOID MARRIAGE
Decree of Nullity can be attacked
directly or collaterally always void
actions does not prescribe
VOIDABLE MARRIAGE
Decree for annulment can only be
attacked directly valid until annulled
action prescribes
A void marriage may be questioned by
any interested party in any proceeding
where the resolution of the issue is
material.

RULE ON MARRIAGE CONTRACTED

DURING THE EFFECTIVITY OF
PREVIOUS MARRIAGE (1992 I-D)
GENERAL RULE: NULL AND VOID
EXCEPTION: when prior spouse had
been absent for 4 years, or 2 years in
case of disappearance with danger of
death, and spouse present had wellfounded belief that former was already
dead. The present spouse must
institute a summary proceeding for
the declaration of the presumptive
death of absent spouse. Otherwise,
the marriage shall be null and void.

LIMITED CONCEPT OF FRAUD AS A

GROUND FOR ANNULMENT OF
MARRIAGE (2002 II-C)
1. non-disclosure of a previous
conviction by final judgement of the
party of a crime involving moral
turpitude
2. concealment by the wife of
the fact that at the time of the
marriage, she was pregnant by a man
other than her husband
3. concealment of a sexually
transmissible disease, regardless of its
nature, existing at the time of
marriage
4. concealment of drug addition,
habitual alcoholism or homosexuality
or lesbianism existing at the time of
marriage the enumeration above is
exclusive.
LEGAL SEPARATION
GROUNDS FOR LEGAL SEPARATION
(2002 II-C)

SYSTEM PF ABSOLUTE
COMMUNITY (1992 II-C)
DRUG ADDITION AS A GROUND
FOR LEGAL SEPARATION
1. there should be no condonation or
consent to the drug addiction (Art 56)
2. the action has not prescribed (Art
57)
3. the drug addiction arises during the
marriage every act of sexual infidelity
committed by the man is a ground for
legal separation under Art. 55 (8)

PROPERTY RELATIONS BETWEEN

HUSBAND AND WIFE
PROPERTY REGIME BETWEEN
HUSBAN AND WIFE (1992 II-C)
In the absence of marriage
settlements, or when the regime
agreed upon is void, the system of
absolute community of property shall
govern
NOTE:
Prior to the effectivity of
the Family code on August 3, 2988,
the system of conjugal partnership of
gains governed the property relations
of husband and wife.

GENERAL RULE: Community property

shall consist of all property owned by
the spouses at the time their marriage
or the marriage or acquired thereafter.

DISPOSITION OR ENCUMBERANCE
OF CONJUGAL PROPERTY (2002
VII-B)
Only in the event where one spouse is
incapacitated or otherwise unable to
participate in the administration of the
conjugal properties, may the other
spouse assume sole powers of
administration. However these powers
do not include the powers of
disposition or encumbrance which
must have the authority of the court or
the written consent of the other
spouse. In the absence of such
authority or consent, the disposition or
encumbrance is void, but may be
perfected as a binding contract with
other spouse's acceptance or courts
authorization before withdrawal

PROPERTY REGIME OF UNIONS

WITHOUT MARRIAGE
WHERE PARTIES HAVE NO LEGAL
IMPEDIMENT TO MARRY (1992 IIA)

RULES ON CO-OWNERSHIP
SUPPLETORY (ACP) (1992 II-C)
The provision on co-ownership shall
apply to the absolute community of
property between the spouses in all
matters not provided for in this
Chapter.

Presumption: Presumption of joint

acquisition and equal sharing as to the
property acquired while they live
together
Salaries and wages: Owned in equal
shares
Property acquired exclusively by either
party: Belongs to such party provided

there is proof that he/she acquired it

by exclusive funds.
Property acquired by both parties:
Governed by the rules on coownership.
Forfeiture: When only one of the
parties is in good faith, the share of
the party in bad faith in the coownership shall be forfeited:
a. in favor of their common children;
or
b. in default of or in case of waiver by
any or any all of the common children
or their descendants in favor of the
innocent party.

PROPERTY REGIME OF UNIONS

WITHOUT MARRIAGE
WHERE PARTIES ARE WITHLEGAL
IMPEDIMENT TO MARRY (1992 IIB)
Presumption: When there is evidence
of joint acquisition but none as to the
extent of contribution, there is a
presumption of equal sharing.
Salaries and Wages: Separately owned
by the parties.
Property acquired exclusively by either
party: belongs to such party
Property acquired by both parties:
Owned by them in common in
proportion to their respective
contributions. The efforts of one of the
parties in maintaining the family and
household shall not be considered
adequate contribution in the
acquisition of properties.
Forfeitures: If one party is validly
married to another, his/her share in
the co-ownership shall accrue to the

benefit of the absolute community or

conjugal partnership existing in the
such valid marriage.
If the party who acted in bad faith is
not validly married to another, his/her
share shall be forfeited in the manner
provided in the last paragraph of Art.
147.

PROPERTY
RIGHTS AND OBLIGATIONS OF THE
LANDOWNER AND THE BUILDER,
PLANTER AND SOWER (1992 IV- AE)
LANDOWNER IN Good Faith
Option 1: appropriate for himself
whatever gas been built after paying
indemnity for necessary expenses and
the useful expenses.
As far as the useful expenses is
concerned, the owner has the option
to refund the amount of expenses or
pay the increased in value which the
thing may have acquired by reason
thereof. (related with Art 546 and 548)
Option 2: oblige the builder to pay
the price of the land, if the value of
the land is not considerably more than
the value of the building.
Sower only pays proper rent
BUILDER in Good Faith
Option 1: has the right of retention
over the land without having to pay
rent until landowner pays the
indemnity.
Option 2: If the value of the land is
considerably more than the value of
the building, he cannot be compelled
to buy the land; in such case, he shall
pay reasonable rent.

In case of disagreement upon the

terms of the lease, the court shall fix
the terms thereof.
If the builder voluntarily agrees to buy
the land but fails to pay, the
landowner shall be entitled to recover
his land and to have the building
removed (Depra v Dumalo)
Good Faith is always to be presmed in
the absence of proof to the contrary.
(Technogas Phils v CA)

EXPENSES FOR PRESERVATION

(1992 VI-A)
A co-owner hast the right to compel
the others to share in the expenses of
preservation
A co-owner may exempt himself from
his duty to reimburse by renouncing
so much hid undivided share as may
be equivalent to his share of the
expenses and taxes.

SALE BY CO-OWNERS (1992 VIB,E)

Each co-owner shall have the fullownership of his part and of the fruits
and benefits pertaining thereto, and
he may therefore alienate, assign or
mortgage it, and even substitute
another person in its enjoyment,
except when personal rights are
involved. But the effect of alienation
and mortgage, with respect to the coowners, shall be limited to the portion
which may be allotted to him in the
division upon the termination of the
co-ownership.
"Until a partition is made among coowners, no one of them can claim any
particular portion of an undivided

property as exclusively as his own.

That portion can only be ascertained
until such time as the co-ownership
shall have ceased."
WHEN NO PRESCRIPTION SHALL
RUN IN FAOR OF A CO-OWNER
AGAINST HIS CO-OWNERS (2002V)
No prescription shall run in favor of a
co-owner or co-heir against his coowners of co-heirs so long as he
expressly or impliedly recognizes the
co-ownership.
Par 3. A donor or testator may prohibit
partition of a period of which shall not
exceed twenty years.
In order that the title may prescribe in
favor of co-owner, the following
requisites must concur:
1. the co-owner has performed
unequivocal acts of repudiation
amounting to an ouster of the other
co-owners;
2. such positive acts of repudation
have been known to the other coowners; and
3. the evidence thereof is clear and
convincing (Robles v CA)
NECESSARY AND USEFUL
EXPENSES Relate to Art 448
(1992 IV-A-B)
NECESSARY EXPENSES (GASTOS
NECESARIOS)
Those made for the preservation of
the thing
Rights of a Possessor (in the concept
of owner) as to the necessary
expenses: if in good faith-entitled to:
-Refund

-Retain premises until paid

B. in bad faith- entitled to:

injured to recover damages for its past

existence.

-Refund
-No right of Retention
USEFUL EXPENSES (GASTOS UTILES)
They are those that add value
to the property
Rights of a Possessor (in the
concept of owner) as to the useful
expenses:
If in good faith- entitled to:
-Reimbursement (at owner's
option)
-Right of Retention until paid

DIFFERENT MODES OF ACQUIRING

OWNERSHIP
RULE WHEN ONE FINDS A
MOVABLE (1992 -IX)
(Par 1) Whoever finds a movable,
which is not treasured, must return it
to its previous possessor. If the latter
is unknown, the finder shall
immediately deposit it with the Mayor
of the City or Municipality where the
finding was taken place.

SUCESSION

-Right of Removal (provided no

substantial damage or injury is caused
to the principal, reducing its value

WHEN A WILL MADE IN THE

PHILIPPINES BY AN ALIEN MAY BE
GIVEN EFFECT (2002 III-B)

b. if in Bad Faith- not entitled to

indemnity for any useful improvement
on the premises.

EASEMENTS RELATING TO
WATEERS (2002-IV)

A will made in the Philippines but

executed in accordance with the law
( as to formalities/extrinsic validity) of
the foreign country of which the alien
is a subject, may be given the same
effect as if executed according to the
laws of the Philippines.

Lower estates are obliged to receive

the waters which naturally and without
interruption of man descend from the
higher estate.

SIMPLE SUBSTITUTION OF HEIRS

(2002 VIII-B)

The lower estate cannot construct

works to impede this easement nor
can the higher estate make works
which will increase the burden.

There is simple substitution when the

testator designates one or more heirs
to substitute the heirs instituted in
case such heirs should:
1. Predecease

ABATEMENT OF NUISANCE (2002VI)

The abatement of a nuisance does not
preclude the right of any person

2. Renounce or repudiate
3. Be incapacitated

FIDEICOMMISSARY SUBSTITUTION
(2002 VIII-B)
It is that which takes place when the
fiduciary or first heir instituted is
entrusted with the obligation to
preserve and to transmit to a second
heir the whole or part of the
inheritance, provided such substitution
does not go beyond one degree from
the heir originally instituted, and
provided further, that the fiduciary or
first heir and the second heir are living
at the time of the death of the
testator.
INSTITUTION OF HEIRS (2002 VIIIA)
A modal institution is the institution of
heir made for a certain purpose or
cause.
MODAL INSTITUTION (2002 VIII-AC)
In modal institution, the testator
states (1) the object of institution, (2)
the purpose or application of the
property left by the testator, or (3) the
charge imposed by the testator upon
the heir. These are not considered s
conditions unless it appears that such
was the intention of the testator.
When an institution is modal, that
which has been left in this manner
may be claimed at once upon the
death of the testator.
Effect of Non-Fulfillment of a
Testamentary Disposition Subject to a
Mode: if a sanction is clearly imposed
by the testator in his will in case of
non-fulfillment of the obligation, it
should be given effect.
Since testamentary disposition are
generally acts of liberality, an
obligation imposed up in the heir

should not be considered a condition

unless it clearly appears from the will
itself that such was the intention of
the testator. In case of doubt, the
institution should be considered as
modal and not conditional. (Rabadilla
v CA)

INHERITANCE BY CHILDREN (1992

V-A)
The children of the deceased shall
always inherit from him in their own
right, dividing the inheritance in equal
shares.
SHARES OF BROTHERS AND
SISTERS (1992 V-B)
Should the only survivors be brothers
and sister of the full blood, they shall
inherit equal shares.

PRESCRIPTION
ACUISITIVE PRESCRIPTION (1992
VII, 2002 VII-B)

REQUISITES:
Possession must be in good faith
Possession must be by virtue of a just
title
Acquisitive prescription of dominion
and other real rights may be:
Ordinary- requires possession in
good faith and with just title for 10
years
Extraordinary- through
uninterrupted adverse possession
thereof for thirty years
without need of title or of good faith.

JUST TITLE (1992 VII)

For purposes of prescription, there is
just title when the adverse claimant
came into possession of the property
through one of the mode recognized
by law for the acquisition of ownership
or other real right, but the grantor was
not the owner or could no transmit any
right.

OBLIGATIONS AND CONTRACTS

WHEN DELAY IS INCURRED (2002
X(a))
(Par 3.) In reciprocal obligations,
neither party incurs in delay if the
other does not comply in a proper
manner with what is incumbent upon
him. From the moment one of the
parties fulfills his obligation, delay by
the other begins.
Reciprocal Obligations are to be
performed simultaneously, so that the
performance of one is a conditioned
upon the simultaneous fulfillment of
the other. (Integrated Packaging Corp.
v CA)
FORTUITOUS EVENTS (2002 XVIIA)
GENERAL RULE: No person shall be
responsible for those events which,
could not be foreseen, or which,
though foreseen, were inevitable.
EXCEPTION:
1. when expressly specified by law
2. when expressly stipulated in the
contract
3. when the nature of the obligation
requires the assumption of risk

"Defective brakes, tire blow-outs and

others a similar nature cannot be
classified as fortuitous events per se
within the meaning of the law."
A fortuitous event should occur
independent of the will of the debtor
or without his participation or
aggravation.
JOINT AND SOLIDARY
OBLIGATIONS (1992 III- B,D)
GENERAL RULE: obligation presumed
to be joint if there is concurrence of
two or more debtors and /or two or
more creditors in same obligation.
EXCEPTION:
1. when expressly stated to be
solidary;
2. when the law requires solidarity;
and
3. when the nature of the obligation
requires solidarity.
In solidary obligations, a creditor has
the right to demand full payment of
the obligation from any of the solidary
debtors.

AGAINST WHOM THE CREDITOR

MAY PROCEED IN SOLIDARY
OBLIGATIONS (1992 III A-C)
The creditor may proceed against any
one of the solidary debtors or some or
all of them simultaneously;
The demand made against one of
them shall not be an obstacle to those
which may subsequently be directed
against the others, so long as the debt
has not been fully collected.

REUISITES OF A VALID
COMPENSATION (2002 IX)
1. There must be two parties, who, in
their own right, are principal creditors
and principal debtors of each other;
2. both debts must consist in money,
or if the things due are fungibles, they
must be of the same kind and quality
3. both debts must be due
4. both debts must be liquidated and
demandable
5. there must be no retention or
controversy commenced by third
persons over either of the debts and
communicated in due time to the
debtor and
6. Compensation must not be
prohibited by law.
As a general rule, a bank has a right of
set off of the deposits in its hands for
the payment of any indebtness to it on
the part of the depositor. (Gullas v
PNB)

RELATIVITY OF CONTRACTS (2002

X-I)
GENERAL RULE: A contract is only
valid between parties , their assigns
and the heirs
EXCEPTIONS:
1. Stipulation pour atrui- if the
contract should contain some
stipulation in favor of a third person,
he may demand its fulfillment
provided he communicated his
acceptance to the obligor before its
revocation
2. when a third person induces a party
to violate contract

3. third persons who come into

possession of the object of the
contract creating real rights
4. contracts entered into in fraud of
creditors

ESTOPPEL/LACHES (2002 VII A-B)

ESTOPOPEL BY LACHES: The doctrine
of laches is based on public policy
which requires, for the peace of
society, the discouragement of stale
claims, and unlike the Statute of
Limitations, is not a mere question of
time but it principally a question of the
inequity or unfairness of permitting a
right or claim to be enforced or
asserted. (Tijam v Sibonghanoy)
Laches is the failure or neglect, for an
unreasonable and unexplained length
of time, to do what by exercising due
diligence could or should have been
don earlier. It is negligence or
omission to assert a right within a
reasonable time. ( De Vera v CA)
Mere delay in filing an action, standing
alone, does not constitute laches.
(Agra v PNB)
Four Essential Elements of Laches:
1. conduct on the part of the
defendant, or of one under whom he
claims, giving rise to the situation of
which the complaint seeks a remedy
2. delay in asserting complainant's
rights, the complainant having had
knowledge or notice of the
defendant's conduct and having been
afforded an opportunity to institute a
suit
3. lack of knowledge or notice on the
part of the defendant that the

complainant would assert the right on

which he bases his suits and
4. injury or prejudice to the defendant
in the even relief is accorded to the
complainant or suit is not held to be
barred.

SALES
NATURE AND FORM OF CONTRACT
(2002 XIV-B)
The contract of sale is perfected at the
moment there is a meeting og minds
upon the thing which is the object of
the contract and upon the price.
From the moment, the parties may
reciprocally demand performance,
subject to the provisions of the law
governing the form of contracts.
Sale is a consensual contract that is
perfected by mere consent, which may
either be express or implied. A wife's
consent to the husband's disposition
of conjugal property does not always
have to be explicit or set forth in any
particular document, so long as it is
shown by acts of the wife that such
consent or approval was indeed given.
OPTION CONTRACT (2002 XIV-A)
An accepted unilateral promise to buy
ot to sell a determinate thing for a
price certain is biding upon the
promisor if the promise is supported
by a consideration distinct from the
price
An option contract is a contract
granting a person the privilege to buy
or not to buy certain objects at any
time within the agreed period at a
fixed price. The contract of option is a
separate and distinct contract from
the contract which parties may enter

into upon the consummation of the

contract; therefore an option must
have its own cause or consideration.
(Enriuez dela Cavada v Diaz)

EARNEST MONEY (2002 XIV- B,C)

Whenever earnest money is given in a
contract of sale, it shall be considered
as part of the price and as proof of the
perfection of the contract.
CONTRACT OF SALE BY STATED
INSTALLMENTS
(2002 X- A,B)
(Par 2.) When there is a contract of
sale of goods to be delivered by stated
installments, which are to be
separately paid form and the seller
akes defective deliveries in respect of
one of more installments, or the buyer
neglects or refuses without just cause
to take delivery of or pay for one or
more installment, it depends in each
case on the terms of the contract and
the circumstances of the case,
whether the breach of contract is so
material as to justify the injured party
in refusing to proceed further and
suing for damages for breach is
severable, giving rise to a claim for
compensation but not to a right to
treat the whole contract as broken

RIGHT OF LEGAL REDEMTION OF

CO-OWNER
(2002 IV, XI-A)
A co-owner of a thing may exercise
the right of redemption incase the
shares of all the other co-owners or of
any of them, are sold to a third
person. if the price of the alienation is

grossly excessive, the redemption-er

shall pay only a reasonable one.

- if rent is paid daily- lease is

from day to day

Should two or more co-owners desire

to exercise the right of redemption,
they may only do so in proportion to
the share they may respectively have
in the thing owned in common.

- if rent is paid weekly- lease is

from week to week

The right to succession are

transmitted to the heirs from the
moment of death of the decedent. As
a consequence, the heirs become coowners of the still undivided share of
the estate. Any one of them is entitled
to exercise the right of legal
redemption if any one of the coowners has sold her undivided share
to a stranger. Redemption by on coowner inures to the benefit of all. (Si v
CA)
RIGHT OF LEGAL REDEMPTION
(2002 XII)
The thirty (30) day period for the
exercise of the right of legal
redemption does not begin unless a
notice in writing of the sale is given to
the redemptioner by the prospective
vendor or vendor.
Written notice under this article is
mandatory for the right of redemption
to commence.

GENERAL RULES IF DURATION OF

LEASE IS NOT FIXED (1992 VIII)
1. If there is a fixed period- the lease
will be for said period
2. if there is NO fixed period, apply the
ff rules:

- if rent is paid monthly- lease is

from month to month
- if rent is paid annual- lease is
from year to year however,

1. Even though a monthly rent is paid,

and no period for lease has been setthe courts may fix a longer term for
the lease after the lessee has
occupied the premises for over one
year
2. if the rent is weekly- the courts may
likewise determine a longer period
after the lessee has been in
possession for over six months
3. in case of daily rent- the courts may
also fix a longer period after the lessee
has stayed in the place for over one
month

LEASE
EXTRA ORDINARY DILIGENCE BY
COMMON CARRIERS (1992 X A,B)
A Common carrier is bound to carry
the passengers safely as far as human
care and foresight can provide, using
the utmost diligence of every cautious
persons, with due regard for all the
circumstances.

WHEN COMMON CARRIER LIABLE

FOR MORAL DAMAGES (1992 X
-C,D)

1. If the passenger is MERELY INJURED

- common carrier is not liable, unless
there was fraud or bad faith

LOAN
RULE WHEN DEPOSITARY LOST
THE THING BY FORCE MAJEURE

2. if their passenger DIES- he is

LIABLE.

(1992 IX)

PARTNERSHIP

If the Depositary by force majeure or

government order loses the thing and
receives money or another thing in its
place, he shall deliver the sum or
other thing to the depositor.

OBLIGATION OF THE PARTNERS

AMONG THERMSELVES (1992 XII)
If two or more partners have been
entrusted with the management of the
partnership without specification of
their respective duties, or without a
stipulation that one of them shall not
act without the consent of all the
others, each one may separately
execute all acts of administration, but
if any of them should oppose the acts
of the others, the decision of the
majority shall prevail. In case of a tie,
the matter shall be decided by the
partners owing the controlling interest.

This article contemplates of a thing

received by the depositary in
substitution of the thing originally
deposited

GUARANTY
GUARANTY AND SURETYSHIP
(1992 III-C)
GUARANTOR
Subsidiary liability pays if the debtor
CANNOT
Insurer of the debtor's insolvency

AGENCY
AGENCY COUCHED IN GENERAL
TERMS (1992 VIII)
An agency couched in general term
compromises only acts of
administration, even if the principal
should state that he withholds no
power or that the agent may execute
such as he may consider appropriate,
or even though the agency should
authorize a general and unlimited
management.

SURETY
Primary liability
Pays if the debtors DOES NOT
Insurer of the debt
When the contract is one of
suretyship, the provisions of the Civil
Code on solidary obligations shall be
observed.

EXTRA CONTRACTUAL
OBLIGATIONS
NEGOTIORUM GESTIO (1992 XIII-A)

It is a juridical relation in the nature of

a quasi-contract which arises when a
person (gestio negotiorum or officious
manager) voluntarily takes charge of
the agency or management of the
business or property of another,
without any power form the latter, as
a consequence of which, he is obliged
to continue the same until the
termination of the affair and its
incidents, or to require the person
concerned to substitute him, if the
owner is in the position to do so.
EFFECT OF RATIFICATION BY THE
OWNER OF THE BUSINESS (1992
XIII-D)
The ratification produces the effects of
an express agency, even if the
business may not have been
successful.

PRESSUMPTION OF NEGLIGENCE
(2002 XVII-C)
In motor vehicle mishaps, the owner is
solidary liable with his driver, if the
former, who was in the vehicle, could
have, by the cause of due diligence
prevented the misfortune.... xxxxxx..
The law does not require the owner to
supervise the driver every minute that
he is driving. Only when, through his
negligence, the owner has lost an
opportunity to prevent the accident
would he be liable
If the owner was not in the Vehicle, the
provision of Art 2180 are applicable
(Vicarious Liability)

VICARIOUS LIABILITY (1992 X-B/

2002 XVII-B)

LIABILITY OF PROPRIETORS (2002

VI)

It is that liability which arises by virtue

of the presumption of negligence on
the part of the person made
responsible under this article, derived
from their failure to exercise due care
and vigilance over the acts of
subordinates to prevent them from
causing damage. Negligence is
imputed by law unless the contrary.

XXXX

"The responsibility treated under this

article shall cease when the person
herein mentioned prove that they
observed all diligence of a good father
of a family to prevent damage"
- the primary and solidary liability of
the employer under this article can be
established by proving the existence
of an ER-EE Relationship with the actor
and the latter cause the injury while
performing his assigned task.

(4) By emanations from tubes, canals,

sewers or deposits of infectious
matter, constructed without
precautions suitable to the place.

DAMAGES
DAMAGES FOR DEATH CAUSE BY A
CRIME OR QUASI-DELICT (1992 XD)
Shall be at least P50,000.00;
In addition, the defendant shall be
liable for the loss of the earning
capacity of the deceased, and the
indemnity shall be paid to the heirs of
the latter;
If the deceased was obliged to give
support, the recipient which is not an

heir called to the decedent's

inheritance by the law of testate or
intestate succession, may demand
support from the person causing the
death
The spouse, legitimate and illegitimate
descendants and ascendants of the
deceased may demand moral
damages for mental anguish by
reason of the death of the deceased.
CONCEPT OF ATTORNEY'S FEES AS
DAMAGES (2002 XVI-B)
These are actual damages, it is due to
the plaintiff and not to the counsel
the plaintiff must allege the basis of
his claim for attorney's fees in the
complaint

7. in actions for the recovery of wages

of households helpers, laborers, and
skilled workers
8. in actions for indemnity under
workmens compensation and
employer's liability laws;
9. in a separate civil action to recover
civil liability arising from a crime
10. when at least double judicial costs
11. in any other case where the court
dee3ms it just and equitable that
attorney's fees and expense of
litigation must be reasonable.
In all cases, the attorneys fees and
expenses of litigation must be
reasonable
The basis should be one of the 11
cases specified

GENERAL RILE: in the absence of

stipulation, attorneys fees and
expenses of litigation, other than
judicial costs, cannot be recovered.
EXCEPTIONS:
1. when exemplary damages are
awarded;
2. when the defendants act has
compelled the plaintiff to litigate with
third persons or to incur expenses to
protect his interest
3. in criminal cases of malicious
prosecution against the plaintiff;
4. in case of clearly unfounded civil
action or proceeding against the
plaintiff
5. where the defendant acted in gross
and evident bad faith in refusing to
satisfy the plaintiff's plainly valid, just
and demandable claim
6. in actions for legal support

INTEREST ON DAMAGES FOR

BREACH OF CONTRACT (2002 XV)
With respect to damages for breach of
contract, the legal interest is 6%
computed from the time of the final
demand up to the finality of
judgement of the decision and 12% of
the total amount from finality of
judgement until judgement is fully
paid. The court considered the latter
as a forbearance of money. (Eastern
shipping lines v CA)
INTEREST RTE ON LOANS OR
FOREBEARANCE OF MONEY
Central Bank Circular No. 416
prescribes that the rate interest of the
loan, or forbearance of money, good
or credits and the rate allowed in
judgements, in the absence of express
contract as to such rate of interest

shall be 12%. With respect to

collection of money or promissory
note, it being forbearance of money,
the legal rate if interest for having
defaulted on the payment of 12% shall
apply".

INTEREST AS PART OF DAMAGE

(2002 XV)
In crimes and quasi-delicts, interest
as part of the damages may, in proper
case, be adjudicated in the discretion
of the court.

WHEN MORAL DAMAGED MAY BE

RECOVERED
(1992 X-D/ 2002 XVI-A)
1. Criminal Offenses resulting to
physical injuries
2. quasi-delicts causing physical
injuries
3. seduction, rape or other lascivious
acts (parents of the female victim may
also recover moral damages)
4. Adultery or concubinage
5. Illegal or arbitrary detention or
arrest;
6. Illegal Search
7. Libel, slander, or any form of
defamation
8. Malicious prosecution (proof of bad
faith)
9. Action for damages against persons
who show disrespect for the dead
xxxxxx (the spouse, descendants,
ascendants, and brother and sister
may bring the action in the order
named)

10. Acts and actions referred to in Art.

21, 26, 27,28,29,30,32,34 and 35.

LAND TITLES AND DEEDS

CONCLUSIVENESS OF A DECREE
OF REGISTRATION (1992 XI/ 2002
XI)
PD 1529
(Par 2) The decree of registration shall
bind the land and quiet title thereto,
subject only to such exceptions or
liens as may be provided by law. It
shall be conclusive upon and against
all persons, including the National
Government and all branches thereof,
whether mentioned by name in the
application or notice..

ELEMENTS FOR ALL THE

ALLOWANCE OF THE REVIEW OF A
DECREE OR REGISTRATION/
EQUITABLE REMEDY OF
RECONVEYANCE
1. That the petitioner has a real or
dominical right;
2. that he has been deprived thereof
through actual fraud
3. that the petition is files within one
(1) year from the date of entry of the
decree;
4. that the property has not yet been
transferred to an innocent purchaser
for value.

CONFLICTS OF LAWS
SITUS OR ELECTIC THEORY (1992
XIV A-C)

In general, it states that the capacity,

legal condition, or status of an
individual should be governed not
necessarily by the law of his
nationality nor by the law of his
domicile but by the law of the place
(situs) where an important element of
the problem occurs or is situated.

PLACE OF THE MOST SIGNIFICANT

RELATIONSHIPS
To determine which the state of the
most significant relationship was, the
factual contacts of each case are
considered. In Contract cases, the
factual contracts include:

1. the laws chosen by the parties and

in the absence thereof; by
2. the place of contracting
3. the place of negotiation of the
contract;
4. the place of performance
5. the domicile, residence, nationality,
place of incorporation and the
business of the parties
These contacts are evaluated
depending on their relative
importance and relevance to the issue
at hand.