Beruflich Dokumente
Kultur Dokumente
BAR REVIEWER
FACULTY ADVISER
ACADEMICS HEAD
SUBJECT HEADS
CIVIL LAW
Table of Contents
PRELIMINARY TITLE
1. Effect and Effectivity of Law
2. Human Relations
PERSONS8
===================================
A. General Provisions
B. Natural Persons
C. Juridical Persons
D. Domicile
E. Marriage
F. Legal Separation
G. Rights and Obligations Between Husband and Wife
H. Property Relations Between Husband and Wife
I. The Family
J. Family Home
K. Paternity and Filiation
L. Adoption
M. Support
N. Parental Authority
O. Funerals
P. Surname
Q. Absence
R. Civil Register
PROPERTY37
===================================
A. Classification of Property (Arts. 414-418, CC)
B. Ownership (Arts. 427-439, CC)
C. Accessions
D. Quieting Title
E. Co-ownership
F. Condominium Act (RA 4726)
G. Possession
H. Usufruct
I. Easements
J. Modes Of Acquring Ownership
K. Occupation
L. Intellectual Creation
M. Donation
N. Other Modes of Acquiring Ownership
O. Nuisance
PRESCRIPTION78
===================================
A. Definition
B. No Prescription Applicable
C. Prescription or limitation of actions
D. Interruption
OBLIGATIONS 82
===================================
A. Definition
B. Elements of an Obligation
C. Different Kinds of Prestations
D. Classification of Obligations
E. Sources of obligations (Arts. 1156-1157)
F. Nature and Effect of Obligations
G. Kinds of Civil Obligations
H. Joint and Solidary Obligation
I. Extinguishment of Obligations
CONTRACTS 109
===================================
A. Essential Requisites (Art. 1261)
B. Kinds of Contracts
C. Formality (Arts. 1356, 1357, 1358)
D. Defective Contracts
E. Effect of contracts (Art. 1311)
SALES 123
===================================
A. Introduction
B. Parties to a Contract of Sale
C. Subject Matter
D. Obligations of the Seller to Transfer Ownership
E. Price
F. Formation of Contract of Sale
G. Transfer of Ownership
H. Risk of Loss
I. Documents of Title
J. Remedies of an Unpaid Seller
K. Performance of Contract
L. Warranties
M. Breach of Contract
N. Extinguishment of the Sale
Page 3 of 338
LEASE 199
=================================
A. Lease of Things
B. Lease of Work or Services
C. Lease of Rural and Urban Lands
D. Contract for Piece of Work
E. Rights and Obligations of Lessor and Lessee
PARTNERSHIP 205
=================================
A. Contract Of Partnership
B. Rights and Obligations of Partnership
C. Rights and Obligations of Partners Among Themselves
D. Obligations of Partnership/Partnership to Third Persons
E. Dissolution
F. Limited Partnership
AGENCY 221
=================================
A. Definition of Agency
B. Powers
C. Express V. Implied Agency
D. Agency By Estoppel
E. General vs. Special Agency
F. Agency Couched in General Terms
G. Agency Requiring Special Power of Attorney
H. Agency by Operation of Law
I. Rights and Obligations of Principal
J. Modes of Extinguishment
CREDIT TRANSACTIONS235
=================================
A. Loan
B. DEPOSIT
283
A. Torrens System
B. Regalian Doctrine
C. Citizen Requirements
D. Non-Registrable Properties
E. Original Registration
F. Subsequent Registration
G. Dealings With Unregistered Land
Page 4 of 338
CIVIL LAW
b) Mandatory Effect of Laws
================================
TOPICS UNDER THE SYLLABUS
A. PRELIMINARY TITLE
1. Effect and Effectivity of Law
a. When laws become effective
b. Mandatory effect of laws
c. Irretroactivity of laws
d. Waiver of rights
e. Repeal of laws
f. Judicial decisions
g. Presumption and Applicability of Custom
h. Computation of Time
i. Governing laws
j. Rules on Prohibitive laws
2. Human Relations
a. Application
b. Duty to act with justice, observe honesty
and good faith
c. Actions for breach of promise to marry
d. Unjust enrichment at the expense of others
e. Rights to personal dignity and privacy
f. Liability of Public Officers
=========================================
CIVIL LAW branch of law that regulates relations of
assistance, authority and obedience among family members
as well as members of a society for the protection of private
interests
NEW CIVIL CODE: took effect on August 30, 1950
=================================================
c)
Page 5 of 338
Judicial Decisions
(relating to
family rights
and duties,
status, legal
capacity)
Property Laws
Philippines,
including those
living abroad
Nationality: follow
ones own national
laws
Real and
personal
property
Laws on Forms
and
Solemnities
Forms and
solemnities of
contracts, wills,
public
instruments
j)
2. HUMAN RELATIONS
g)
Computation of Time
Penal Laws
Status Laws
Matters/Persons
Bound
All those who
live or sojourn in
Philippine
territory
Citizens of the
Principle/ Doctrine
Principle of
Territoriality: follow
laws of the place
where crime was
committed
Principle of
a)
Application
Page 6 of 338
Note:
c)
e)
Requisites:
1. Defendant has been enriched
2. Plaintiff suffered a loss
3. Unjust Enrichment of defendant is without just or legal
ground
4. Plaintiff has no other action based on contract, quasicontract, crime, or quasi-delict
Distinguished from solutio indebiti: Mistake is an essential
element in solutio indebiti but not in accion in rem verso.
DUTY TO INDEMNIFY ONE FOR DAMAGE TO HIS PROPERTY
(Art. 23): when defendant was benefitted even if not due to
fault or negligence
DUTY OF COURTS TO PROTECT A PARTY IN A CONTRACT
(Art. 24): When such party is at a disadvantage on account of
his: (MIgIMenTO)
Moral dependence
Ignorance
Indigence
Mental weakness
Tender age
Other handicap
THOUGHTLESS EXTRAVAGANCE (Art. 25)
May be prevented if the ff requisites are present:
1. During an acute public want or emergency
2. Person seeking to stop it is the govt or a private
charitable institution
Page 7 of 338
I. PERSONS
=================================================
B. NATURAL PERSONS
NATURAL PERSONS V. JURIDICAL PERSONS
Natural Persons
Juridical Persons
A human being, has
Exists only in
physical existence
contemplation of law
Product of procreation
Product of legal fiction
1.
A. GENERAL PROVISIONS
2. Rules on Survivorship
Doubts as to Order of Death: As between two or more
persons called to succeed each other, if there is doubt as to
which of them died first, whoever alleges the death of prior
to the other shall prove the same. In the absence of proof, it
is presumed that they died at the same time and there shall
be no transmission of rights from one to the other.
This rule applies only to cases involving succession
C. JURIDICAL PERSONS
1.
Page 8 of 338
2.
3.
1.
2.
3.
CITIZENSHIP
In the Philippine jurisdiction, what is followed is the
concept of jus sanguinis (citizenship by blood) as
opposed to jus soli (citizenship by place of birth)
D. DOMICILE
DOMICILE ( Arts. 50-51)
For natural persons, it is the place of
habitual residence
For juridical persons, it is where their legal
representation is established or where
they exercise their principal functions
(when the law creating them does not fix
the domicile)
A minor follows the domicile of his parents
Domicile of origin can only be lost when a change of
domicile occurs.
Requirements for the acquisition of new domicile:
1. Bodily presence in a new locality
2. Intention to remain therein (animus manendi)
3. Intention to abandon the old domicile (animus non
revertendi)
The husband and the wife shall fix the family domicile. In
case of disagreement, the court shall decide
Kinds of Domicile
1. Domicile of origin received by a person at birth
2. Domicile of choice the place freely chosen by a person
sui juris
3. Constructive domicile assigned to a child by law at the
time of his birth
================================
TOPICS UNDER THE SYLLABUS
E. Marriage (Arts. 1-54, Family Code)
1. Concept
2. Essential and Formal Requirements
3. Non-Essential Requirements
4. Marriages Celebrated Outside the
Philippines
a. Validity and Exceptions
b. Foreign Divorce
5. Void Marriages
a. Void ab initio under Art. 35
b. Void under Art. 36
c. Void for Being Incestuous under Art. 37
d. Void for Reason of Public Policy under
Art. 38
e. Imprescriptibility of action or defense for
declaration of nullity of marriage. (Art. 39)
f. Subsequent Marriage Without Judicial
Declaration of Nullity of Previous Void
Marriage (Art. 40)
6. Annullable Marriages
7. Procedure and Effects of Termination of
Marriage
================================================
E. MARRIAGE
1. CONCEPT
Marriage is
1. A special contract
2. of permanent union
3. Between a man and a woman
4. Entered into in accordance with law
5. For the establishment of conjugal and family life
2.
Page 9 of 338
Exceptions:
1. Marriage at the point of death (articulo mortis)
2. Marriage in remote places
3. Marriage at a house or place designated by the
parties in a sworn statement upon their written
request to the solemnizing officer
Page 10 of 338
OTHER REQUIREMENTS:
Either or Both Parties
Requires
18 years old and above but
below 21
21 years old and above but
below 25
Parental consent
Marriage counseling
Parental advice
Marriage counseling
EFFECTS
Lack of parental consent
Marriage is VOIDABLE
Lack of parental advice or NO EFFECT on th validity of
marriage counselling
marriage
However, this will suspend
the issuance of the
marriage license for 3
months from the
completion of publication
3. NON-ESSENTIAL REQUIREMENTS
Marriage Certificate
While a marriage certificate is considered the primary
evidence of a marital union, it is not regarded as the sole and
exclusive evidence of marriage. Jurisprudence teaches that
the fact of marriage may be proven by relevant evidence
other than the marriage certificate. Hence, even a persons
birth certificate may be recognized as competent evidence of
the marriage between his parents. (Anonuevo vs. Int. Estate
of Jalandoni, [GR 178221, December 1, 2010])
Exceptions:
1. Where either or both parties are below 18 years old
2. Bigamous or polygamous marriage (except Art. 41
on presumptive death of spouse)
3. Mistake in identity
4. Marriages void under Art. 53 contracted following
the annulment or declaration of nullity of a previous
marriage but before partition
5. Psychological incapacity
6. Incestuous marriages
7. Marriage void for reasons of public policy
b)
Foreign Divorce
Divorce by Foreigner-Spouse:
If a Filipino is married to a foreigner and the latter
subsequently obtains a valid divorce abroad capacitating
him/her to remarry, the Filipino spouse shall likewise
have the capacity to remarry under the Philippine law.
(Art. 26, par. 2)
Requisites:
a.) There is a valid marriage that had been celebrated
between Filipino citizen and a foreigner
b.) A valid divorce is obtained abroad by the alien
spouse capacitating him or her to remarry
The traditional rule applies when parties at the time of
celebration are a Filipino and an alien BUT
This includes cases involving parties who, at the time of
the celebration of the marriage, were Filipino citizens
but, later on, one of them becomes naturalized as a
foreign citizen and obtains a divorce decree. The Filipino
spouse should be allowed to remarry as if the other
party was a foreigner at the time of the solemnization of
the marriage. Republic v. Orbecido III, 472 SCRA 114
(2005)
For the second paragraph of Article 26 to apply, a spouse
who obtained the divorce must not be a Filipino at the
time of the divorce. Otherwise, the divorce is not
recognized in the Philippines. Republic v. Iyoy, G.R. No.
15277, September 21, 2005
Additionally, an action based on the second paragraph of
Article 26 of the Family Code is not limited to the
recognition of the foreign divorce decree. If the court
finds that the decree capacitated the alien spouse to
remarry, the courts can declare that the Filipino spouse
is likewise capacitated to contract another marriage. No
court in this jurisdiction, however, can make a similar
declaration for the alien spouse (other than that already
established by the decree), whose status and legal
capacity are generally governed by his national law.
Corpuz vs. Sto. Tomas, G.R. No. 186571, August 11,
2010
Page 11 of 338
5. VOID MARRIAGES
a)
1.
2.
3.
4.
6.
b)
5.
Mistake in identity
The contemplated mistake here refers to the
actual physical identity of the other party, and
not merely mistake in the name, character, age,
or other attributes of the person.
Subsequent marriage void under Art. 53
- A person whose marriage has been annulled
may remarry as long as after the marriage is
annulled, the properties of the spouses must be
partitioned and distributed and the presumptive
legitimes of the children be distributed.
Furthermore, the judgment of annulment or
absolute nullity, the partition and distribution,
and the delivery of the presumptive legitimes
must be recorded in the appropriate civil registry
and registries of property. Failure to comply
Page 12 of 338
3.
4.
5.
6.
7.
8.
2.
3.
4.
5.
6.
7.
8.
9.
Page 13 of 338
Under the new Family Code, the following can now marry
each other:
a. Brother-in-law and sister-in-law
b. Stepbrother and stepsister
c. Guardian and ward
d. Adopted and illegitimate child of the
adopter
e. Parties who have been convicted of
adultery or concubinage
NOTE: R.A. 6995 (Mail Order Bride Act) declares as unlawful
the practice of matching Filipino women for marriage to
foreign nationals on a mail-order basis and other similar
practices including the advertisement, publication, printing or
distribution of brochures, fliers, and other propaganda
materials in furtherance thereof.
e)
Page 14 of 338
d.
4.
5.
3.
4.
5.
6.
ARTICLE 45
The STD is a ground for
annulment
The STD does not have to
be concealed
The STD must be serious
and incurable
ARTICLE 46
The STD is a type of fraud
which in turn is a ground for
annulment
The STD must be concealed
6. ANNULLABLE MARRIAGES
Grounds for Annulment (art. 45): (PUFFIS)
1. Lack of parental consent
2. Either party is of unsound mind
3. Fraudulent means of obtaining consent of either
party
Circumstances constituting fraud: (Art. 46)
a. Non-disclosure of conviction by final
judgment of crime involving moral
turpitude
b. Concealment of pregnancy by another man
c. Concealment of sexually transmissible
disease, regardless of nature, existing at
the time of marriage
Page 15 of 338
b. Parent or guardian
Sane spouse
2 views:
RATIFICATION
Free cohabitation after reaching 21
Sempio-Diy:
Before death of other party
Dean Del Castillo:
Within 5 years from the time the
right or action accrues
Guardian of insane spouse
Insane spouse
Fraud
Injured Party
Vitiated consent
Injured Party
Injured Party
Page 16 of 338
BASIS
Status of
children
Property
Relations
Donations
Propter
Nuptias
Insurance
Succession
Page 17 of 338
BASIS
As to nature
As to susceptibility to
ratification
As to effect on property
As to effect on children
a.
b.
a.
b.
c.
VOIDABLE
Valid until annulled
Can be ratified either by free cohabitation or prescription
a.
b.
c.
Page 18 of 338
2. Insanity
b.No-Consent
Party
a. Sane spouse
without
knowledge of
insanity
b. Within 5 years
after reaching 21
a. Anytime before
death of either
party
b. Relative,
guardian or
person having
legal charge of
insane
b. Anytime
before death of
either party
c. Insane spouse
c. During lucid
interval or after
regaining sanity
3. Fraud
Injured Party
4. Vitiated
Consent
Injured Party
5. Incapability to
Consummate/
Sexually
Transmitted
Disease
Injured Party
Within 5 years
from discovery of
fraud
Within 5 years
from time of
force,
intimidation or
undue influence
disappeared or
ceased
Within 5 years
after the
marriage
ceremony
C. Service of Summons
Governed by the Rule 14 of the Rules of Court and
the following:
Page 19 of 338
Page 20 of 338
K. Decision
Copies will be served on the parties, including the
SolGen and public prosecutor
Final after expiration of 15 days from notice to the
parties
Should be registered in the Civil Registry where the
marriage was celebrated and in the Civil Registry of
the place where the Family Court is located
L. Appeal
Not allowed if no motion for reconsideration or
new trial is made w/in 15 days from notice of
judgment
M. Death
Party dies before entry of judgment: case closed
and terminated w/o prejudice to the settlement
of the estate in proper proceedings in the regular
courts
7.
8.
9.
2.
3.
4.
5.
6.
7.
8.
Condonation
failure of the husband to look for his adulterous
wife is not condonation to wifes adultery
Consent
Connivance
Collusion
Mutual guilt
Prescription action for legal separation must be filed
within five years from the time of the occurrence of
the cause of action
Death of either party during the pendency of the case
Lapuz-Sy v. Eufemio, 43 SCRA 177 (1972)
Reconciliation of the spouses during the pendency of
the case
Effects of Separation:
1. Spouses are entitled to live separately
2. Marriage bond is not severed
3. Dissolution of property regime
4. Forfeiture of the share of the guilty spouse in the net
profits of the ACP/CPG
5. Custody of minor children to innocent spouse (subject
to Art. 213: parental authority shall be exercised by
parent designated by the court)
The imposed custodial regime under the second
paragraph of Article 213 is limited in duration, lasting
only until the childs seventh year. From the eighth
year until the childs emancipation, the law gives the
separated parents freedom, subject to the usual
contractual limitations, to agree on custody regimes
they see fit to adopt. (Dacasin vs. Dacasin, GR168785,
February 5, 2010)
6. Guilty spouse is disqualified from intestate succession
and provisions made by innocent spouse in his favor in
a will shall be revoked by operation of law
7. Innocent spouse may revoke the donation made by
him in favor of the offending spouse. However,
alienations, liens and encumbrances registered in
good faith before the recording of the complaint for
revocation in the registries of property shall be
respected.
Page 21 of 338
8.
================================================
Profession
General Rule - Either spouse may exercise any legitimate
profession/business without the consent of the other
Exception - The other spouse may object on valid, serious
and moral grounds. In case of disagreement,
the court shall decide whether
a. The objection is proper AND
b. Benefit has accrued to the family before
and after the objection.
If benefit accrued to the family before the objection,
the resulting obligation shall be enforced against the
separate property of the spouse who has not obtained
consent
If benefit accrued to the family after the objection has
been made, the resulting obligation shall be enforced
against the community property
================================================
3.
Local customs
Page 22 of 338
2. MARRIAGE SETTLEMENT
Requisites of a Valid Marriage Settlement: (WSB-TC-CR)
1. In writing
2. Signed by the parties
3. Executed before the celebration of marriage
4. To fix the terms and conditions of their property
relations
5. If parental consent is needed for the marriage, the
parent/guardian must be made a party to the
agreement
6. If the party executing the settlement is under civil
interdiction or any other disability, the guardian
appointed by the court must be made a party to the
settlement
7. Registration (to bind 3rd persons)
General Rule: Property Relations are governed by
Philippine laws
Exceptions:
1. When both are aliens, even if married in the Phils.
2. As to extrinsic validity of contracts
3. Contrary stipulation
Future
Property
May be included
provided donation is
mortis causa
Cannot be included
Grounds for
revocation
Art. 86 of Family
Code
Page 23 of 338
By operation of law if
donee-spouse contracted
subsequent void marriage in
bad faith
5 years
4. PROPERTY RELATIONS
a. System of Absolute Community (acp)
The property regime of spouses in the absence of a
marriage settlement or when the regime agreed upon is
void.
NOTE: Shall commence at the precise moment that the
marriage is celebrated. Any stipulation, express or implied,
for the commencement of the regime at any other time
shall be VOID.
No waiver of rights allowed during the marriage except in
case of judicial separation of property. The waiver must be
in a public instrument.
Property acquired during the marriage, whether acquisition
appears to have been made in the name of one or both
spouses, is PRESUMED to belong to the community.
General Rule: The community property consists of all the
property owned by the spouses at the time of the
celebration of the marriage or acquired thereafter.
Page 24 of 338
4.
Page 25 of 338
b. encumbrance
Both spouses must approve any disposition or
encumbrance. Any encumbrance or disposition is
void if without the written consent of the other
spouse or the court approval. However, the
transaction shall be construed as a continuing
offer on the part of the consenting spouse, which
may be perfected as a binding contract upon
acceptance by the spouse or court approval.
Separation of Property
Page 26 of 338
4. Abandonment or
failure to comply with
marital obligations
4. Other void
marriages / live-in
Salaries and
wages
Owned in equal
shares
Properties
acquired
through
exclusive
funds
Remains exclusive
provided there is
proof
Presumed to be
obtained in equal
shares since it is
presumed to have
been acquired
through joint efforts
Properties
acquired
while living
together
7. Void marriages by
reason of public
policy under Art.38
Exclusively owned;
married party
property of CPG of
legitimate marriage
Remains exclusive
Page 27 of 338
1.
==============================================
5.
1. MANNER OF CONSTITUTION
GUIDELINES:
2.
3.
4.
6.
2. QUALIFIED PROPERTY
Actual value of the family home shall not exceed P300,000
in URBAN areas and P200,000 in RURAL areas (Art.157)
3. EXEMPTION FROM EXECUTION
General Rule: (Art. 153) The family home (FH) is exempted
from:
1. Execution
2. Forced Sale
3. Attachment
Exceptions: (Art. 155)
1. Non-payment of taxes
2. Debts incurred prior to constitution of home
3. Debts secured by mortgages on the premises
4. Debts due laborers, mechanics, architects, builders,
materialmen, and others who have rendered service
or furnished materials for the construction of the
building
NOTE: The exemption is limited to the value allowed by the
Family Code
4. SALE
Sale, Alienation, Donation, Assignment, Or Encumbrance
Of The Family Home
1. The person who constituted the same must give
his/her written consent
2. The spouse of the person who constituted the family
home must also give his/her written consent
3. A majority of the beneficiaries of legal age must also
give their written consent
4. In case of conflict, the court shall decide
Requisites For Creditor To Avail Of The Right To Execute:
(Art. 160)
1. He must be a judgment creditor
2. His claim is not among those excepted under Art. 155
Page 28 of 338
3.
PROCEDURE:
1. Creditor to file a motion in the court proceeding where
he obtained a favorable for a writ of execution against
FH.
2. Hearing on the motion where the creditor must prove
that the actual value of the FH exceeds the maximum
amount fixed by the Family Code, either at the time of
its constitution or as a result of improvements
introduced thereafter its constitution.
3. If creditor proves that actual value exceeds the
maximum amount the, court will order its sale in
execution.
4. If FH is sold for more than the value allowed, the
proceeds shall be applied as follows:
a. First, the obligations enumerated in Art. 155 must
be paid (listed above)
b. Then the judgment in favor of the creditor will be
paid, plus all the costs of execution
c. The excess, if any, shall be delivered to the
judgment debtor
a.
==============================================
1.KINDS OF FILIATION
2.CHILDREN BY NATURE
Legitimate Children
b. Illegitimate Children
ILLEGITIMATE CHILDREN -are those conceived AND born
outside a valid marriage.
Exceptions: Those children who are:
1. Born of marriages which are void ab initio such as
bigamous and incestuous marriages and void
marriages by reason of public policy
2. Born of voidable marriages born after the decree of
annulment
Page 29 of 338
c.
Legitimated Children
To claim filiation
i. Proof of filiation
PROOF OF FILIATION
General Rule: (Art. 172, Par. 1) Filiation of legitimate or
illegitimate children is established by any of the following:
1. The record of birth appearing in the civil register or a
final judgment
Page 30 of 338
4.
b. To impugn filiation
WHO MAY IMPUGN THE LEGITIMACY OF A CHILD:
General Rule: Only the husband can impugn the legitimacy
of a child
Exceptions: The heirs of the husband may impugn the
childs filiation in the following cases:
a. If the husband dies before the expiration of period for
filing the action
b. If the husband dies after filing without desisting
c. If the child was born after the death of the husband
GROUNDS TO IMPUGN THE LEGITIMACY OF THE CHILD:
(EXCLUSIVE LIST) (PBA)
1. It was physically impossible for the husband to have
sexual intercourse with his wife within the first 120
days of the 300 days which immediately preceded the
birth of the child because of:
a. Physical incapacity of the husband to have sexual
intercourse with his wife
b. Fact that the husband and wife were living
separately in such a way that sexual intercourse
was not possible, or
c. Serious illness of the husband which absolutely
prevented intercourse
2. If its proved that for biological or other scientific
reasons, the child could not have been that of the
husband, except in the case of children conceived
through artificial insemination
3. In case of children conceived through artificial
insemination, when the written authorization or
ratification of either parent was obtained through
mistake, fraud, violence, intimidation, or undue
influence
PERIODS FOR FILING OF ACTION TO IMPUGN LEGITIMACY:
1. If the husband (or his heirs, in proper cases) resides in
the SAME city or municipality: within 1 year from
knowledge of the birth OR its recording in the civil
register
2. If the husband (or his heirs) does NOT RESIDE in the
city or municipality where the childs birth took place
or was recorded BUT his residence is IN THE PHILS.:
within 2 years
3. If the childs birth took place or was recorded in the
PHILS. while the husband has his residence ABROAD,
or vice-versa: within 3 years
NOTE:
The period shall be counted from the knowledge of the
childs birth or its recording in the civil register.
HOWEVER, if the childs birth was concealed from or
was unknown to the husband or his heirs, the period
shall be counted from the discovery or knowledge of
the birth of the child or of the act of registration of said
birth, whichever is earlier.
2.
4. RIGHTS OF LEGITIMATE/LEGITIMATED/ILLEGITIMATE
CHILDREN
RIGHTS OF LEGITIMATE AND ILLEGITIMATE CHILDREN
BASIS
LEGITIMATE
ILLEGITIMATE
Use of father
Use of mothers
Surname
and mothers
surname
surname
NOTE: R.A. 9255
Page 31 of 338
Legitime
Support
Entitled to
legitime and
other
successional
rights granted
to them by the
NCC
Entitled to
receive support
from parents,
ascendants,
and in proper
cases, brothers
and sisters
under Art. 174
Entitled only to of
legitime of legitimate
child
Receive support
according to the
provision of the FC
Action for
claim for
legitimacy or
illegitimacy
His/her whole
lifetime regardless
of type of proof
provided under
Art.172 par. 1
ONLY lifetime of
alleged parent for
Art. 172 par. 2
Transmissible
to heirs under
Art.173?
Yes
No
Yes
No right to inherit ab
intesto from legitimate
children and relative
of father and mother
under Art. 992 NCC
NOTE:
Use the surname of the mother if the requisites of R.A.
9255 are not complied with
Use the surname of the father if the childs filiation has
been expressly recognized by the father, either
through:
1. Record of birth in civil register
2. Fathers admission in public document
3. Fathers admission in private handwritten
document (R.A. 9255, Sec. 1, effective March 19,
2004)
NOTE: The father under R.A. 9255, Sec. 1 has the right
to file an action to prove non-filiation during his
lifetime.
His/her whole
lifetime
regardless of
type of proof
provided under
Art. 172
Right to
inherit ab
intesto
=============================================
1. CONSTRUCTION
INTER-COUNTRY ADOPTION -is the socio-legal process of
adopting a Filipino child by a foreigner or a Filipino citizen
permanently residing abroad where the petition is filed,
the supervised trial custody is undertaken, and the decree
of adoption is issued outside the Philippines.
2. QUALIFICATIONS
ADOPTER
AND
DISQUALIFICATIONS
OF
Page 32 of 338
8.
9.
g.
2.
AND
DISQUALIFICATIONS
OF
3.
ALIEN
a.
Page 33 of 338
3.
4.
5.
6.
4.
EFFECTS OF ADOPTION:
1. Severance of all legal ties between the biological
parents and the adoptee and the same shall then be
vested on the adopters EXCEPT in cases where the
biological parent is the spouse of the adopter
2.
3.
4.
5.
RULES ON SUCCESSION
6.
RECISSION OF ADOPTION
Page 34 of 338
Absolute community of
conjugal partnership
Absolute community or
conjugal property
Absolute community or
conjugal property
a. Spouses
b. Ascendants and Descendants
c. Parents and Legitimate/Illegitimate
Children/Descendants
d. Legitimate/Illegitimate Brothers and
Sisters
RULES REGARDING SUPPORT TO ILLEGITIMATE BROTHERS
AND SISTERS (WHETHER FULL OR HALF BLOOD):
1. If the one asking for support is below majority age, he
is entitled to support from his illegitimate brother or
sister to the full extent, without any condition
2. If the one asking for support is already of majority age,
he is entitled to support only if his need for support is
not due to a cause imputable to his fault or negligence
(Art. 196)
Legitimate ascendants,
other legitimate and
illegitimate descendants,
and legitimate and
illegitimate brothers and
sisters
2. CONTRACTUAL SUPPORT
3. BASIS OF SUPPORT
LEGACY OF SUPPORT
Based on law
Exempt from execution and
attachment
CONTRACTUAL SUPPORT
Based on contract, so it can
be between strangers
Not exempt from attachment
and execution because it is
not a legal obligation
Page 35 of 338
DURING THE
MARRIAGE
4. OPTIONS OF GIVER
From the
community
property
From the
community
property
SOURCES OF SUPPORT
PENDING
AFTER LITIGATION
LITIGATION
SPOUSES
From the
community
property assets
except if Art. 203
applies, i.e. if the
claimant spouse is
No obligation to
the guilty spouse,
support except if
he/she will not be
there is legal
entitled to support.
separation, in which
case the court may
If the spouses are
require the guilty
under CPG, support
spouse to give
is considered an
support
advance of such
spouses' share; the
rule does not apply
if the spouses are
under ACP, based
on Art 153
CHILDREN
From the separate
From the community
property of the
property
spouses
=============================================
When the obligation to give support falls upon two or
more persons, the payment of the same shall be
divided between them in proportion to the resources
of each.
However, in case of urgent need and by special
circumstances, the judge may order only one of them
to furnish the support provisionally, without prejudice
to his right to claim from the other obligors the share
due from them.
When two or more recipients at the same time claim
support from one and the same person legally obliged
Page 36 of 338
==========================================
1. CONTEMPT
PARENTAL AUTHORITY (PATRIA POTESTAS) -is the mass of
rights and obligations which parents have in relation to the
person and property of their children until their
emancipation, and even after, under certain circumstances.
Characteristics Of Parental Authority:
1. It is a natural right and duty of the parents (Art. 209)
2. It cannot be renounced, transferred or waived, except
in cases authorized by law (Art. 210)
3. It is jointly exercised by the father and the mother
(Art. 211)
4. It is purely personal and cannot be exercised through
agents
5. It is temporary
2. OVER PERSON
RULES AS TO THE EXERCISE OF PARENTAL AUTHORITY:
1. The father and the mother shall jointly exercise
parental authority over the persons of their common
children. In case of disagreement, the father's decision
shall prevail, unless there is a judicial order to the
contrary (Art. 211)
2. If the child is illegitimate, parental authority is with the
mother.
WHO EXERCISES PARENTAL AUTHORITY
Absence of
Parent present
either parent
Death of
Surviving parent
either parent
Remarriage
Surviving parent, unless the court appoints
of surviving
a guardian
parent
Parent designated by the court, taking into
account all relevant considerations,
especially the choice of the child over 7
years old, unless the parent chosen is unfit
GR: A child under 7 years of age shall not
be separated from the mother
UNLESS the court finds compelling
Separation of
reasons to order otherwise (TENDER
parents
YEARS DOCTRINE)
(Art. 213)
Paramount consideration in matters of
custody of a child is the welfare and wellbeing of the child Tonog v. Court of
Appeals, [G.R. No. 122906, February 7,
2002]
3. OVER PROPERTY
Effect Of Parental Authority Upon The Property Of The
Child:
1. The father and mother shall jointly exercise legal
guardianship over the property of the minor common
child without court appointment
2. In case of disagreement, the fathers decision shall
prevail, unless there is judicial order to the contrary
3. If the market value of the property or the annual
income of the child exceeds P50,000, the parent is
required to furnish a bond of not less than 10% of the
value of the childs property or income
Page 37 of 338
2.
5. SUSPENSION/TERMINATION OF PARENTAL
AUTHORITY
Grounds For Suspension Of Parental Authority: (CHOBA)
1. Conviction of parent for crime with civil interdiction
2. Treats child with excessive harshness and cruelty
3. Gives corrupting orders, counsel or example
4. Compels child to beg
5. Subjects to or allows him to be subjected to acts of
lasciviousness
=================================
TOPIC UNDER SYLLABUS
N. Funerals (Arts. 305-310,CC)
O. Surname (Arts 364-380, CC)
P. Absence (Arts. 381-396,CC)
Q. Civil Register (Arts. 407-413,CC)
=================================
N. FUNERAL
General Guidelines:
1. Duty and right to make arrangement in funerals in
accordance with Art. 199 FC:
a. Spouse
b. Descendants in nearest degree
Page 38 of 338
2.
3.
4.
WIFE
a.
b.
Valid
marriage
Husband is
living
(Art. 370)
d.
O. SURNAME
USE OF SURNAME
CHILD CONCERNED
Legitimate child
Legitimated child
Adopted child
Illegitimate child
SURNAME TO BE USED
Fathers surname
Fathers surname
Adopters surname
1. Mothers surname; or
2. Fathers name if they
were recognized by their
father in the record of
birth or in an authentic
writing
Fathers surname
Mothers surname
Husband is
dead
(Art. 373)
Wife is the
guilty party
Between
ascendants and
descendants (Art.
375)
c.
SURNAME TO BE USED
First name and maiden
name + her husbands
surname
First name + her husbands
surname
Her husbands full name,
but prefixing a word
indicating that she is his
wife, such as Mrs
Retain the use of her
maiden name (use of
husbands surname is not a
duty but merely an option
of the wife)
Page 39 of 338
P. ABSENCE
Persons Who May Be Appointed By Way Of Court Order
As The Representative Of An Absentee In Case Of
Provisional Absence Or As An Administrator
1. If no legal separation, the spouse present
2. If no spouse or if the spouse present is a minor, any
competent person
The spouse who is appointed as administratrix of the
absentee spouses property cannot alienate or
encumber the same, or that of the conjugal
partnership, without judicial authority.
When Administration Shall Cease
1. Absentee appears personally or by means of an agent;
2. Death of the absentee is proved and his estate or
intestate heirs appear;
3. A third person appears, showing by a proper
document that he has acquired the absentee's
property by purchase or other title
Page 40 of 338
STAGES
Provisional Absence
- A person disappears from his
domicile, whereabouts are
unknown and
a. He did not leave any agent; or
b. He left an agent but agent's
power has expired
Judicial Declaration of Absence
-Necessary for interested persons
to be able to protect the interest
of the absentee
WHEN TO FILE
No statutory period
Without administrator
- After 2 years having elapsed
without any news about the
absentee or since the last
news
With administrator
- After 5 years from time of
disappearance
Presumption of death
a. Interested party
b. Relative
c. Friend
a.
b.
c.
d.
Spouse
Voluntary heirs
Intestate heirs
Those who may have over the
property of the absentee some
right subordinated to the
condition of the absentee's
death
Spouse
ORDINARY ABSENCE
4 years person presumed dead for purposes of remarriage of the
spouse present
7 years presumed dead for all purposes EXCEPT for those of
succession
10 years person presumed dead for purposes of opening
succession
EXCEPT if he disappeared after the age of 75, an absence of 5 years is
sufficient
EXTRAORDINARY ABSENCE
1. If a person rode an airplane or sea vessel lost in the course of
voyage, from the time of loss of the airplane or sea vessel
2. If a person joined the armed forces who has taken part in war, from
the time he is considered missing in action
3. Danger of death under other circumstances, from time of
disappearance
REMEDY
a. Receivership (Art. 12, FC)
b. Judicial separation of property (Art. 12,
FC)
c. Authority to be sole administrator of the
conjugal partnership (Art . 12, FC)
a. When the spouse of the absentee is
asking for separation of property(Art.
135, FC)
b. When the spouse of the absentee is
asking the Court that the administration
of all classes in the marriage be
transferred to her(Art.142, FC)
Action to declare a person presumptively
dead is proper only when the spouse of the
absentee wants to remarry
COMMENTS
In provisional absence,
the judge at the instance
of an interested party, a
relative, or a friend may
appoint a person to
represent him in all that
may be necessary.
Judicial declaration of
absence does not take
effect until six months
after its publication in a
newspaper of general
circulation.
Page 41 of 338
Q. CIVIL REGISTER
MATTERS RECORDED/ENTERED IN THE CIVIL REGISTER:
1. Acts, events and judicial decrees concerning the civil status
of persons
2. Birth
3. Marriage
4. Death
5. Legal separation
6. Annulment of marriage
7. Judgments declaring marriage void from the beginning
8. Legitimation
9. Adoption
10. Acknowledgement of natural children
11. Naturalization
12. Loss of citizenship
13. Recovery of citizenship
14. Civil interdiction
15. Judicial determination
16. Voluntary emancipation of a minor
17. Change of name
General Rule: Entries in the civil register may be changed or
altered only upon a judicial order.
Exception: Clerical or typographical errors or change in the
name or nickname can be changed administratively through
verified petition with the local office of the civil registrar.
Who may file petition: Any person having direct and personal
interest in any act, event, order or decree concerning the civil
status of persons or change of name
PROCEDURAL REQUIREMENTS FOR A PETITION FOR CHANGE
OF NAME:
1. 3 years residency in the province where change is sought
prior to the filing
2. Must not be filed within 30 days prior to an election
3. Petition must be verified
PROPER AND REASONABLE CAUSES THAT MAY WARRANT THE
GRANT OF A PETITION FOR CHANGE OF FIRST
NAME/NICKNAME:
1. Petitioners true and official name is ridiculous;
2. Petitioners true and official name is tainted with dishonor
3. Petitioners true and official name is extremely difficult to
write or pronounce
4. New first name or nickname has been habitually and
continuously used by the petitioner and he has been
publicly known by the first names and nicknames in the
community
5. When the change is necessary to avoid confusion (Sec. 4,
R.A. 9048)
6.
Page 42 of 338
or nickname
NOTE: The new law, R.A. 9048, applies only to clerical and
typographical errors in entries of name and does not modify
the rules mentioned above
Page 38 of 338
II. PROPERTY
===================================
5.
6.
===================================
PROPERTY: An object or a right which is appropriated or
susceptible of appropriation by man, with capacity to satisfy
human wants and needs.
A. CLASSIFICATION OF PROPERTY
Requisites of Property: (USA)
1. Utility for the satisfaction of some human wants
endows property with value susceptible of
pecuniary estimation (e.g. food, shelter, clothing,
recreation)
2. Substantivity or individuality
quality of having existence apart from any other
thing (e.g. blood, when separated from the body)
3. Appropriability
susceptibility of being possessed by men
not susceptible of appropriation:
I. Common things (res communes)
Exception: those that may be appropriated
under certain conditions in a limited way
(e.g. Electricity, oxygen)
II. Due to physical impossibility (e.g. Sun)
III. Due to legal impossibility (e.g. Human body)
IV. Due to no ownership (e.g. wild animals) or
abandonment by the owner.
Classification of Property
1. Mobility and Non-mobility
A. Movable or personal property
B. Immovable or real property
2. Ownership
A. Public
B. Private
3. Alienability
A. Within the commerce of man (or which may be
the objects of contracts or judicial transactions)
B. Outside the commerce of man
4. Existence
A. Present property (res existents)
B. Future property (res futurae)
NOTE: Both present and future property may be
the subject of sale but generally not the subject
of donation.
7.
8.
9.
Materiality or Immateriality
A. Tangible or corporeal
B. Intangible or incorporeal
Dependence or Importance
A. Principal
B. Accessory
Capability of Substitution
A. Fungible capable of substitution by other things
of the same quality and quantity
B. Non-Fungible incapable of such substitution,
hence, the identical thing must be given or
returned
Nature or Definiteness
A. Generic one referring to a group or class
B. Specific one referring to a single, unique object
Whether in the Custody of the Court or Free
A. In custodia legis in the custody of the court
B. free property
1. IMMOVABLE PROPERTY
Juridical Classification of Immovable Properties: (NIDA)
1. By nature cannot be moved from place to place
because of their nature (Art. 415 par 1 & 8 NCC)
A. land, buildings, roads and constructions of all
kinds adhered to soil
a structure which is merely superimposed on
the soil may be considered movable.
B. mines, quarries, and slag dumps, while the
matter thereof forms parts of the bed, and
waters either running or stagnant
Page 37 of 338
2.
3.
B.
C.
D.
4.
2. MOVABLE PROPERTY
Movable Property: (SIFTOS)
1. Susceptible of appropriation that are not included in
enumeration in immovables. Example
interest in the business is personal property.
Involuntary Insolvency of Strochechker v.
Ramirez,[44 Phil 933 (1922)]
2. Immovable that are designated as movable by special
provision of law. Examples
Growing crops are considered immovable under
Art. 415(2) but personal property by Chattel
Mortgage Law. Sibal v. Valdez, 50 Phil 512 (1927)
House built on leased land may be treated insofar
as the parties are concerned as personal property
and be the object of a chattel mortgage. Navarro
v. Reyes,[9 SCRA 63 (1963)]
3. Forces of nature brought under control by science.
Examples
Electricity, gas, rays, heat, light, oxygen, atomic
energy, water power etc.
Electricity, the same as gas, is an article bought
and sold like other personal property and is
capable of appropriation by another. United
States v. Carlos,[21 Phil. 364 (1946)]
4. Things which can be transported w/o impairment of
real property where they are fixed
5. Obligations which have for their object movables or
demandable sums (credits)
obligations and actions must be legally
demandable
demandable sums must be liquidated
6. Shares of stocks of agricultural, commercial &
industrial entities although they may have real estate
Classification Of Movables:
1. According to nature
a. Consumable cannot be utilized w/o being
consumed
b. Non-consumable
Page 38 of 338
2.
3. ACCORDING TO OWNERSHIP
a. Public Dominion
Public Dominion outside the commerce of men.
KINDS: (USD)
A. intended for public use can be used by the
public or everybody
B. intended for specific public service of state,
provinces, cities & municipalities can be
used only by duly authorized persons, such
as government buildings and vehicles
C. for the development of national wealth
Characteristics:
A. Outside the commerce of men cannot be
alienated or leased or be the subject of any
contract
B. Cannot be acquired by private individual or
even municipalities through prescription
C. Not subject to attachment & execution
D. Cannot be burdened by voluntary easement
E. Cannot be registered under the Land
Registration Law and be the subject of a
Torrens Title
F. In general, can be used by everybody
NOTE: Fishponds are considered as part of public dominion and
cannot be acquired by private persons unless it is converted
into patrimonial property. However, fishponds may be leased
by the government.
Properties which the government owns for fundamental
purposes for rendering government services are properties
of public dominion. They are held by the local
governments for public service, but at the same time, they
can be removed by the State from the LGUs without
having to pay just compensation because the LGUs are
merely acting as agents. (City of Zamboanga Del Norte v.
Province of Zamboanga Del Norte)
b. Private Ownership
KINDS:
Patrimonial property - the property of the State owned by it in
its private or proprietary capacity, the property is not intended
for public use, or for some public service, or for the
development of the national wealth.
G.
- Exist for attaining economic ends of state
- Property of public dominion when no longer
intended for public use/service declared
patrimonial (Article 422 NCC)
- Subject to prescription
- May be an object of ordinary contract
- Example: property acquired in execution and tax
sales, incomes or rents of the State
H. Property for LGUs
- Property for public use
- roads, streets, squares, fountains, public
waters, promenades and public works for public
service paid for by the LGUs
- all other properties possessed by LGUs without
prejudice to special laws are considered
patrimonial
NOTE: Patrimonial properties of LGUs cannot be removed
by the State without paying just compensation.
I. Property of Private Ownership - all properties
belonging to private persons and those belonging to
the State and any of its political subdivisions which are
patrimonial in nature
Conversion Of Property Of Public Dominion To Patrimonial
Property
1. Property of the National Government
formal declaration by the executive or legislative
department that the property is no longer
needed for public use or for public service
2. Property of political subdivisions
must be authorized by law
NOTE: Sacred and religious objects are outside the commerce
of man. They are neither public nor private party.
Political subdivisions cannot register as their own any part of
the public domain, UNLESS:
1. grant has been made
2. possession has been enjoyed during the period necessary
to establish a presumption of ownership
Aliens have no right to acquire any public or private
agricultural, commercial, or residential lands except by
hereditary succession.
Private individual has superior right over the property against
the state.
The right of the public to use the city streets may not be
bargained away through contract. Rule: Local government
Page 39 of 338
3.
4.
5.
6.
7.
A property continues to be part of the public domain
until there is a formal declaration on the part of the
government to withdraw it from being such. An
abandonment of the intention to use the property for
public service and to make it patrimonial property must be
definite. It cannot be inferred from the non-use alone.
Laurel v. Garcia, [187 SCRA 797 (1990)]
====================================================
1. RIGHTS OF OWNERSHIP/LIMITATIONS
Seven Rights Of Ownership:
1. JUS ABUTENDI right to consume, transform or
abuse by its use
2. JUS ACCESIONES right to fruits and accessories
Page 40 of 338
ACTION
CAUSE
Forcible
entry
(detencion)
GROUND
GROUND: deprivation of
possession
through:
force,
intimidation,
strategy, threat, or stealth
(FISTS)
Accion
Interdictal
Unlawful
detainer
(desahuico)
Lessor/person
having
legal right over property
deprived of such when
the
lessee/person
withholding
property
refuses to surrender
possession of property
after
expiration
of
lease/right
to
hold
property
Better right of possession
Physical
possession
Recovery of dominion of
property
based
on
ownership
OWNERSHIP
Accion Publiciana
Accion Reinvindicatoria
I.
II.
Possession
DE FACTO
PERIOD
Within 1 year from
(1)
unlawful
deprivation,
or
from (2) discovery,
in case of stealth
or strategy
Within 1 year from
unlawful
deprivation: date
of last demand or
last
letter
of
demand
COURT
MTC
PROCEEDINGS
Summary
proceeding
MTC
Summary
proceeding
Within a period of
10
years,
otherwise the real
right of possession
is lost
30 years
Depends on
ASSESSED
VALUE
Depends on
ASSESSED
VALUE
Civil
Injunction
- Generally not available as a remedy.
- When injunction is allowed:
A. Actions for forcible entry
B. Ejectment
- possessor admittedly the owner or in possession in concept of owner
- possessor clearly not entitled to property
- extraordinary cases where urgency, expediency and necessity so required
Writ of possession
- When proper:
A. Land registration cases
B. Foreclosure, judicial or extra-judicial, of mortgage provided that the mortgagor has possession and no
third party has intervened
C. Execution sales
D. Eminent domain proceedings
E. Ejectment
Page 41 of 338
3. PRESUMPTION OF OWNERSHIP
a)
1.
2.
Eminent Domain
Page 37 of 338
4. HIDDEN TREASURE
Concept of Treasure: (HUM)
1. Hidden and unknown
2. Unknown owner
3. Consists of Money, jewels, or other precious objects.
(not raw materials)
Right to Hidden Treasure:
1. Finder is the same as owner of the property treasure
totally belongs to him.
2. Finder is third person and he discovered it by chance
finder is entitled to one half of the value of the treasure.
3. Finder is an intruder he is not entitled to anything
4. Finder was given express permission by the owner
subject to the contract of service and principle of unjust
enrichment
Following Article 1187 of the Civil Code, the MCIAA may keep
whatever income or fruits it may have obtained from Lot No.
988, and X need not account for the interests that the amounts
they received as just compensation may have earned in the
meantime.
Respondents, as creditors, do not have to settle as part of the
process of restitution the appreciation in value of Lot 988 which
is a natural consequence of nature and time. x x x,"
c)
Police Power
Page 38 of 338
BASIS
REPLEVIN
Action or provisional remedy where
the complainant prays for the recovery
of the possession of the personal
property
Definition
Where to
file
Issue
involved
* NOT APPLICABLE TO
(a) Movables distrained or taken for a
tax assessment or fine pursuant to law
(b) Those under a writ of execution or
preliminary attachment
(c) Those under custodia legis
MTC or RTC depending on the amount
of money involved
Recovery of possession of personal
property
Action
Prescription
Others
In Personam
Steps:
i. Complaint is filed at
commencement or at any
time before answer of
other party
ii. Complaint should allege
OWTA (owner, wrongfully
taken, taken against law)
iii. Pay bond double the
amount of property
iv. Sheriff takes property
v. Doors broken if necessary
FORCIBLE ENTRY
Summary action to recover
material or physical
possession of real property
when a person originally in
possession was deprived
thereof by (FISTS)
Force,
Intimidation, Strategy,
Threat, or
Stealth
UNLAWFUL DETAINER
ACCION PUBLICIANA
ACCION
REINVINDICATORIA
Action to recover
ownership of real
property
It is the preliminary
action to recover a
better right to
possess
Material or physical
possession of real property
Possession de facto
Material or physical
possession of real property
Possession de facto
Ownership of real
property
Quasi in Rem
1 year from dispossession
FIT from dispossession
SS from discovery
Quasi in Rem
1 year from the time the
possession became
unlawful last date of
demand or letter of
demand
Better right of
possession of real
property. Possession
de jure
Quasi in Rem
10 years
2 kinds:
a) Possession not
through FISTS
- can be filed
Immediately
Accion reinvindicatoria
can be filed
simultaneously with
FE
Judgment of
ownership usually
includes the right of
possession
MTC
Page 39 of 338
RTC
RTC
Quasi in Rem
10 or 30 years depending
on whether its ordinary
or extraordinary
prescription
Should remember
Article 434. In an
action to recover
Defendants remedy:
1. File a bond double the amount,
and
2. Give copy to plaintiff
Strangers remedy File a 3rd party
claim
(land
Refers to any kind of
land
It should be alleged
that the right to
possess had been
terminated and that
the continued
possession was
unlawful
Not the remedy if
what is sought is
specific performance
Demand
Necessary - if there is a
breach
Not necessary if the fixed
period just expires
Page 40 of 338
ownership, the
property must be
identified, and the
plaintiff must rely on
the strength of his
title and not on the
weakness of the
defendants claim
================================
TOPICS UNDER THE SYLLABUS
C. Accessions
1. Accession Discreta
a. Natural Fruits
b. Industrial Fruits
c.
Civil Fruits
2. Accession Continua
a.1 Accession Industrial
i. Builder/ Planter/ Sower (BPS) in
Good Faith
ii. BPS in Bad Faith
iii. No Claim of Ownership
a.2 Accession Natural
a.3 For Personal Property
i. Adjucntion/ Conjunction
ii. Mixture
iii. Specification
================================
C. ACCESSION
ACCESSION is the right of the owner of a thing, real or
personal, to become the owner of everything which is
produced thereby, or which is incorporated or attached
thereto, either naturally or artificially.
NOTE: It is NOT one of the modes of acquiring ownership
enumerated in Article 712.
2 KINDS OF ACCESSION:
1.
2.
i.
Gathered Fruits
PLANTER
OWNER
Planter in
Good Faith
(GF)
Keeps fruits
Planter in
Bad Faith
(BF)
Reimbursed for
expenses for
production,
gathering, and
preservation
(necessary
expenses)
ii.
No need to reimburse
the planter of expenses
since he retains the
fruits
Gets fruits, pay planter
necessary expenses
Standing Crops
Planter in
GF
Planter in
BF
PLANTER
Reimbursed for
expenses
for
production,
gathering,
and
preservation
Loses everything.
No
right
to
reimbursement
OWNER
Owns fruits provided
he
pays
planter
expenses
for
production, gathering,
and
preservation.
(forced co-ownership)
Owns fruits
Page 41 of 338
ESSENCE OF DISTINGUISHMENT
In planting: planter may be required to buy the land.
In sowing: sower may be required to pay rents.
PLANTING V. SOWING
1.
2.
Page 48 of 338
OPTIONS:
1.
Or
2.
LO = BF
Builder = BF
(as if both in GF)
LO = GF
Builder= BF
BUILDER
1. Right to indemnification
a. Necessary expenses, w/ right of retention until
reimbursed
b. Useful expenses, w/ right of retention
2. Right of removal - if the thing suffers no injury, and if his
successor in the possession does not prefer to refund
the amount expended.
Appropriate improvements as
his own after paying for
indemnity
Compel the builder to buy the
land where the building has
been built
Exception:
Value of land > Value of improvements rent to
be paid
If builder fails to pay the rent:
no right of retention
LO entitled to removal of improvement
OPTIONS:
1. Appropriate the improvements
- must pay for:
- a. necessary expenses for the preservation of
the land
- b. damages
no need to pay for its value or other
expenses
2. right to demolish or removal + damages
at the builders expense
3. compel the builder or planter to pay the
price of the land, and the sower the proper rent +
damages
whether or not the value of the land is
considerably more than the value of the house
3.
4.
REMEDIES:
1. Demolish what has been built, sown, or planted
2. Consider price of land as an ordinary money debt of the
builder
- may enforce payment thru an ordinary action for
the recovery of a money debt (levy and execution)
EXCEPTIONS to the Rule on Builders, etc. (HSBC)
1. Builder, etc. does not claim ownership over the land
but possesses it as mere Holder, agent, usufructuary
or tenant; he knows that the land is not his.
Page 49 of 338
2.
RD
Page 48 of 338
Page 49 of 338
ACCESSION
Accession
Discreta
Natural
Fruits
Industrial
Fruits
Spontaneous
products of the
soil,
Young and
other products
of animals
Accession
Continua
Real
Civil
Fruits
rents of buildings
price of leases of
land &
other property
amount of
perpetual or life
annuities or
other similar
income
Accession
Industrial
Building
Planting
Sowing
Accession
Natural
Alluvium
Avulsion
Change of course
of rivers
Formation of
islands
Personal
Adjunction/ Specification
Conjunction
(ISTEP)
Inclusion or
engraftment
Soldadura or
soldering
Tejido or weaving
Escritura or
writing
Pintura or Painting
Page 51 of 338
Mixed
1)
2)
commixtion
confusion
Accession Natural
i. Alluvium
ALLUVION - the accretion which the banks of rivers gradually
receive from the effects of the current of the waters and
which belong to the owners of lands adjoining the said
banks.
ACCRETION - act or process by which a riparian land
gradually and imperceptively receives addition made by the
water to which the land is contiguous.
ESSENTIAL ELEMENTS:
1. Deposit or accumulation of soil or sediment must be
gradual and imperceptible.
2. Accretion results from the effects or action of the
current of the waters of the river.
3. The land where accretion takes place must be adjacent
to the bank of a river.
ii. Avulsion
AVULSION - accretion which takes place when the current of
a river, creek, or torrent segregates from an estate on its
bank a known portion and transfers it to another estate, in
Page 52 of 338
Tejido (weaving)
Escritura (writing)
Pintura (painting)
a. Owner of the principal:
a. By law becomes the owner of the resulting
object
b. Indemnifies the owner of the accessories
for the values thereof.
2.
3.
OP = GF
OA = GF
Or
OP = BF
OA = GF
OP =GF
OA = BF
OP = BF
OA = GF
RULES AS TO OWNERSHIP
OWNER OF
OWNER OF ACCESSORY
PRINCIPAL (OP)
(OA)
Acquires the
May demand reparation:
accessory
a. If no injury will be
- indemnifies the
caused
former owner for b. If value of accessory
its value
is greater than principal even if damages will be
caused to principal
(expenses is to the one
who caused the
conjunction)
1. Owns the
1. Loses the thing
accessory
incorporated
2. Right to
2. Indemnify the OP
damages
for the damages OP may
have suffered
1. Pay OA value Right to choose between
of accessory or
1. OP paying him its
2. Principal and value or
accessory be
2. That the thing
separated
belonging to him be
PLUS
separated even though it
Liability for
be necessary to destroy
damages
the principal thing
ii. Mixture
Page 53 of 338
b.
================================
TOPICS UNDER THE SYLLABUS
D. Quieting Title
================================
QUIETING OF TITLE is a remedy or proceeding which has
for its purpose an adjudication that a claim of title to realty
or an interest thereon, adverse to the plaintiff, is invalid or
inoperative, or otherwise defective and hence, the plaintiff
and those claiming under him may forever be free of any
hostile claim.
Reasons:
1. Prevent litigation
2. Protect true title & possession
3. Real interest of both parties which requires that precise
state of title be known
ACTION TO QUIET TITLE
1. Puts an end to vexatious litigation in respect to property
involved; plaintiff asserts his own estate & generally
declares that defendants claim is w/o foundation
2. Remedial
3. QUASI IN REM - suits against a particular person or
persons in respect to the res May not be brought for the
purpose of settling a boundary disputes
4. Applicable to real property or any interest therein. The
law, however, does not exclude personal property from
actions to quiet title.
5. An action to quiet title brought by the person in
possession of the property is IMPRESCRIPTIBLE.
6. If he is not in possession, he must invoke his remedy
within the prescriptive period.
Classifications:
1. Remedial action to remove cloud on title
2. Preventive action to prevent the casting of a
(threatened ) cloud on the title.
Requisites: (TICR)
1. Plaintiff must have a legal or equitable Title or interest
in the real property
2. Cloud in such title
3. Such cloud must be due to some Instrument, record,
claim, encumbrance or proceeding which is:
a) apparently valid
b) but is in truth invalid, ineffective, voidable or
unenforceable
c) prejudicial to the plaintiffs title
4. Plaintiff must Return to the defendant all benefits
received from the latter or reimburse him for expenses
that may have redounded to his benefit
NO APPLICATION TO:
1. Questions involving interpretation of documents
2. Mere written or oral assertions of claims, EXCEPT
a. If made in a legal proceeding
b. If it is being asserted that the instrument of entry in
plaintiffs favor is not what it purports to be
3. Boundary disputes
4. Deeds by strangers to the title UNLESS purporting to
convey the property of the plaintiff
5. Instruments invalid on their face
6. Where the validity of the instrument involves pure
questions of law
Page 54 of 338
================================
TOPICS UNDER THE SYLLABUS
E. Co-ownership
1. Elements
2. How Created
3. Rights of Co-owners
a. Ownership over Whole Property
b. Sale/ Alienation
i. Of Individual Interest
ii. Of Entire Property
iii. Redemption by Other Co-owners
iv. Prescription
c. Benefits/ Fruits/ Interest/ Income
d. Use/ Possession
e. Management/ Administration
4. Partition
a. Demandable Anytime
b. Prohibition for Indivision
5. Obligations of Co-owners
6. Termination
================================
Page 55 of 338
E. CO-OWNERSHIP
CO-OWNERSHIP is a form of ownership which exists
whenever an undivided thing or right belongs to different
persons.
Representation
Effect of death
1. ELEMENTS
1. Plurality of subjects many owners
2. Object of ownership must be undivided
3. Recognition of ideal shares; no one is an owner of a
specific portion of the property until it is partitioned.
2. HOW CREATED
1. Law
2. Contracts
3. Succession
4. Fortuitous event/chance (i.e., commixtion)
5. Occupancy (i.e.,2 persons catch a wild animal)
6. Donation
Kinds of Co-ownership:
1. Ordinary right of partition exists
2. Compulsory no right partition exists (party wall)
3. Legal created by law
4. Contractual created by contract
5. Universal over universal things (co-heirs)
6. Singular or Particular over particular or specific thing
7. Incidental exists independently of the will of the
parties
NOTE: 20 years is
the maximum if
imposed by the
testator or donee
Substitution
Profits
of the common
property
As a rule, no
mutual
representation
Not dissolved by
death or
incapacity of a coowner
Can dispose of his
share without
consent of others
Must always
depend on
proportionate
shares
As a rule, there is
mutual
representation
Dissolved by the
death or
incapacity of a
partner
Cannot
substitute
another as
partner in his
place without
consent of
others
May be
stipulated upon
Page 56 of 338
3. RIGHTS OF CO-OWNERS
a. Ownership over Whole Property
b.
Sale/ Alienation
i.
ii.
Of Individual Interest
o Right to alienate, assign or mortgage
own part; except personal rights like
right to use and habitation
Of Entire Property
iii.
Right of redemption
i. Right to be adjudicated thing (subject to right of
others to be indemnified)
ii. Right to share in proceeds of sale of thing if
thing is indivisible and they cannot agree that it
be allotted to one of them
NOTE:
iv.
Prescription
c.
d.
Use/ Possession
o Right to use thing co-owned
i. For purpose for which it is intended
ii. Without prejudice to interest of
ownership
iii. Without preventing other co-owners
from making use thereof
e.
Management/ Administration
o
o
o
ii.
o
o
4. PARTITION
a. Demandable Anytime
Page 57 of 338
7.
8.
9.
================================
REQUISITES OF REPUDIATION:
1. Unequivocal acts of repudiation of the co-ownership
amounting to an ouster of the other co-owners
2. Positive acts of repudiation have been made Known
3. Evidence is clear and conclusive
4. Open, continuous, exclusive, notorious possession
5. OBLIGATIONS OF CO-OWNERS
1.
2.
3.
4.
5.
6.
================================
CONDOMINIUM an interest in real property consisting of a
separate interest in a unit in a residential, commercial or
industrial building and an undivided interest in common,
directly or indirectly, in the land on which it is located and in
other common areas of the building.
a. Any transfer or conveyance of a unit or an
apartment office or store or other space therein
shall include the transfer and conveyance of the
undivided interest in the common areas or in a
proper case, the membership or shareholdings in
the condominium: provided however, that where
the common areas in the condominium project are
held by the owners of separate units as co-owners
thereof, no condominium unit therein shall be
conveyed or transferred to persons other than
Filipino citizens or corporations at least 60% of the
capital stock of which belong to Filipino citizens,
except in cases of hereditary succession.
General Rule: Common areas shall remain undivided, and
there shall be no judicial partition thereof
Exceptions
1. When the project has not been rebuilt or repaired
substantially to its state prior to its damage or destruction 3
Page 58 of 338
================================
TOPICS UNDER THE SYLLABUS
G. Possession
1. Elements
2. Kinds
3. RequirementsTo Ripen into Ownership
4. Acquisitive Prescription
5. Rights of Legal Processor
a. Peaceful & Uninterrupted Possession
i. Co-possession
ii. Actions in Case of Deprivation of
Possession
b. Fruits
i. Civil Fruits
ii. Natural/ Industrial Fruits
iii. Pending Fruits
c. Indemnity for Expenses/ Improvements
i. Necessary
ii. Useful
iii. Luxurious
iv. Possession by Lessee
6. Prescription of Just Title
a. When Applicable
b. Meaning of Just Title
7. Possession of Movables
a. When Lost
b. Unlawful Deprivation
8. Loss of Possession
================================
1.
ELEMENTS
a. Occupancy actual or constructive (corpus)
b. Intent to possess (animus possidendi)
c. Must be by virtue of ones own right
Extent of Possession:
1. Physical/actual occupancy in fact of the whole or at
least substantially the whole
2. Constructive occupancy in part in the name of the
whole under such circumstances that the law extends
the occupancy to the possession of the whole
Subject of possession: things or rights which are susceptible
of being appropriated
Exceptions:
1. Res communes
2. Property of public dominion
3. Discontinuous servitudes
4. Non-apparent servitudes
DEGREES OF POSSESSION:
1. Holding w/o title and in violation of right of owner
(grammatical degree)
Ex. possession of a thief
2. Possession with juridical title but not that of owner
(juridical possession)
Ex. that of a lessee, pledge, depositary
3. Possession with just title but not from true owner
(possessory right)
Ex. A in good faith buys a car from B who
delivers the same to A but B merely
pretended to be the owner
4. Possession with just title from true owner
ACQUISITION OF POSSESSION FROM THE VIEWPOINT OF
WHO POSSESSES:
1. Personal
Requisites:
a. Intent to possess
b. Capacity to possess
c. Object must be capable of being possessed
2. Thru authorized person (agent or legal representative)
Requisites:
a. Intent to possess for principal (not for agent)
b. Authority or capacity to possess (for another)
c. Principal has intent and capacity to possess
3. Thru Unauthorized person (but only if subsequently
ratified)
Requisites:
a. Intent to possess for another (the principal)
Page 59 of 338
b.
c.
Classes of Possession:
1. In concept of owner owner himself or adverse
possessor
Effects:
A. May be converted into ownership through
acquisitive prescription
B. Bring actions necessary to protect
possession
C. Ask for inscription of possession
D. Demand fruits and damages from one
unlawfully detaining property
2. In concept of holder usufruct, lessee, bailee in
commodatum
3. In oneself personal acquisition
A. must have capacity to acquire possession
B. intent to possess
C. possibility to acquire possession
4. In name of another agent; subject to authority
and ratification if not authorized; negotiorum gestio
A. Voluntary as when an agent possesses
for the principal
B. Necessary as when a mother possesses
for a child still in the maternal womb
C. Unauthorized this will become the
principals possession only after there has
been a ratification without prejudice to
the effects of negotiorum gestio
4. ACQUISITIVE PRESCRIPTION
POSSESSOR IN GOOD FAITH is one who is not aware that
there exist a flaw in the title or mode w/c invalidates it.
b.
c.
MINORS/INCAPACITATED:
1. May acquire MATERIAL possession but not right to
possession;
Page 60 of 338
a.
b.
o
o
i. Co-possession
Co-possessors deemed to have exclusively possessed part
which may be allotted to him; interruption in whole or in
part shall be to the prejudice of all
Page 61 of 338
2.
In general, no
right to refund or
retention but can
remove if no
substantial injury
is caused.
However, owner
has OPTION to
allow:
a. Possessor to
remove
b. Or retain for
himself (the
owner) the
ornament by
refunding the
amount spent (art.
548)
In general, no right
of refund or
retention but can
remove if no
substantial injury is
caused. However,
owner has OPTION
to allow:
1. Possessor to
remove
2. Or retain for
himself (the owner)
the ornament by
refunding the value
it has at the time
owner enters into
possession (art. 549)
Taxes and
Charges
Regarding
gathered or
severed fruits
Regarding
pending or
ungathered
fruits
1. On capital
charged to owner
1. On capital
charged to owner
2. On fruits
charged to
possessor
2. On fruits
charged to owner
3. Charges
prorated
3. Charges to
owner
Possessor must
return value of fruits
already received as
well as value of
fruits which the
owner or legitimate
possessor (not the
possessor in BF)
could have received
with due care or
diligence, MINUS
necessary expenses
for cultivation,
gathering, and
harvesting, to
prevent the owner
from being unjustly
enriched
To possessor
Cultivation
expenses of
gathered fruits
not reimbursed to
possessor
Reimbursed to
possessor
pro-rating
between
possessor and
owner of
expenses, net
harvest, and
charges
To owner
Page 62 of 338
Improvements
no longer
existing
Liability for
accidental loss
or
deterioration
Improvements
due to time or
nature
Production
expenses of
pending fruits
indemnity pro rata
to possessor:
(owners option)
money allowing
full cultivation and
gathering of all
fruits; if possessor
refused, he shall
lose all the right to
be indemnified in
any other manner.
No indemnity
No
reimbursement
No reimbursement
Only if acting w/
fraudulent intent
or negligence,
after summons
To owner or lawful
possessor
To owner or lawful
possessor
b.
Page 63 of 338
a.
b.
c.
d.
5.
Fruits
Possession and enjoyments
Lease of property
Sale/Alienation of Usufructuary rights
Obligations of the Usufructuary
a. Before the Usufruct commences
b. During the Usufruct
i. Alteration of form and substance
ii. Exercise of diligence
iii. Repairs
iv. Charges and Taxes
v. Insurance
6. Termination of Usufruct
8. LOSS OF POSSESSION
================================
NATURE/ELEMENTS
Characteristics or Elements
1. Essential those without which it cannot be termed
usufruct
a. A real right (whether registered in the Registry of
Property or not)
b. Of a temporary nature or duration
c. Purpose: to enjoy the benefits and derive all
advantages from the object as a consequence of
normal use or exploitation
2. Natural that which ordinarily is present, but a contrary
stipulation can eliminate it because it is not essential
a. Obligation of conserving or preserving the form and
substance (value) of the thing
3. Accidental those which may be present or absent
depending upon the stipulation of the parties
a. Whether it be a pure or a conditional usufruct
b. The number of years it will exist
c. Whether it is in favor of one person or several, etc
DISTINGUISHED FROM EASEMENT
================================
TOPICS UNDER THE SYLLABUS
H. USUFRUCT
1. Nature/Elements
2. Application to Personal and Real Properties
3. How constituted
4. Rights of the Usufructuary
BASIS
Object
Extent
USUFRUCT
May be real or
personal property.
Can also be on rights,
but not personal
rights
What can be enjoyed
here are all uses and
EASEMENT
Involves only real
property
Limited to a
particular use
Page 64 of 338
Coverage
Effect of
death
BASIS
Extent
Nature
Creator
Origin
Cause
Repairs
Taxes
May be constituted
in favor or, or
burdening, a piece
of land held in
usufruct
Not extinguished by
the death of the
owner of the
dominant estate
As to
other
things
The usufructuary
pays for the annual
charges and taxes
on the fruits
A usufructuary
may lease the
property itself to
another
KINDS:
1. As to Origin
a. Legal created by law such as usufruct of parents
over the properties of their children
b. Voluntary or conventional
i.
Created by will of the parties inter vivos
ii.
Created mortis causa
c. Mixed partly created by law and partly by will
d. Prescriptive is one acquired by a third person
through continuous use of the usufruct for the
period required by law
2.
As to quantity or extent
a. As to fruits
i.
Total
ii.
Partial
b. As to extent
i.
Universal if over the entire patrimony
ii.
Particular/Singular - if only individual things
are included
3.
5.
As to terms or conditions
a. Pure no term or condition
b. With a term or period
Page 65 of 338
i.
ii.
iii.
II.
HOW CONSTITUTED
c.
RIGHTS OF USUFRUCTUARY
a. Fruits
b. Possession and enjoyments
Lease of Property
4.
3.
4.
5.
Page 66 of 338
6.
7.
8.
9.
A.
iii.
ii.
Exercise of diligence
Insurance
Page 67 of 338
TERMINATION OF USUFRUCT
================================
TOPICS UNDER THE SYLLABUS
I. EASEMENTS
1. Kinds of Easements
2. Rights and Obligations
3. Modes of Extinguishment
4. Legal Easements
a. Public
b. Private
i. Waters
ii. Right of Way
iii. Party Wall
iv. Light and View
v. Drainage of Building
vi. Intermediate Distances
vii. Against Nuisance
viii. Lateral and Subjacent Support
================================
EASEMENT is an encumbrance imposed upon an immovable
for the benefit of another immovable belonging to a different
owner. The immovable in favor of which the easement is
established is called the dominant estate; that which is
subject thereto, the servient estate.
1. KINDS
a) According to purpose of easement or the nature of
limitation
a. Positive one which imposes upon the servient
estate the obligation of allowing something to be
done or of doing it himself
Page 68 of 338
b.
b)
c)
d)
How established:
1. By law (Legal)
2. By the will of the owners (Voluntary)
3. Through prescription (only for continuous and apparent
easements)
Page 69 of 338
Page 70 of 338
Page 71 of 338
================================
TOPICS UNDER THE SYLLABUS
J. Modes of Acquiring Ownership
1. Mode v. Title
2. Original/Derivative Modes
K. Occupation
L. Intellectual Creation
M. Donation
1. Essential Elements
2. Kinds
3. Conditional Donations
a. Effect of Impossible/Illegal Conditions
4. Inter Vivos/Mortis Causa Donations
5. Form
a. Onerous Donations
6. Capacity
a. Of Donor
b. Of Donee
7. Revocation
a. Birth, Survival or Adoption
b. Ingratitude
c. Non-fulfillment of Condition
d. Innoficiousness
N. OTHER MODES OF ACQUIRING OWNERSHIP
1. Law
2. Prescription
O. NUISANCE
================================
MODES OF ACQUIRING OWNERSHIP: (OLDTIPS)
1. Occupation
2. Law
3. Donation
4. Tradition
5. Intellectual Creation
6. Prescription
7. Succession
1.
MODE V. TITLE
Mode
Directly and immediately
produces a real right
The cause
Proximate cause
Essence of the right which
is to be created or
transmitted
2.
Title
Serves merely to give the
occasion for its acquisition
or existence
The means
Remote cause
Means whereby that
essence is transmitted
ORIGINAL/DERIVATIVE MODES
Page 72 of 338
5.
6.
Intent to appropriate
Compliance with the requisites or conditions of the law
Abandonment requires (1) a clear and absolute
intention to renounce a right or a claim or to abandon a
right or property; and (2) an external act by which that
intention is expressed or carried into effect. The
intention to abandon implies a departure, with the
avowed intent of never returning, resuming or claiming
the right and the interest that have been abandoned.
Castellano v. Francisco, [G.R. No. 155640, May 7, 2008]
2.
J.
INTELLECTUAL CREATION
Animals
1. Swarm of bees
owner shall have right to pursue them to anothers
land (owner to identify latter for damages, if any)
land owner shall occupy/retain the bees if after 2
days, owner did not pursue the bees
2. Domesticated animals
may be redeemed within 20 days from occupation
of another person; if no redemption is made, they
shall pertain to the one who caught them
3. Pigeons and fish
when they go to another breeding place, they shall
be owned by the new owner provided they are not
enticed
Movables:
1. Treasure found on anothers property
K. DONATION
DONATION is an act of liberality whereby a person disposes
gratuitously of a thing or right in favor of another, who
accepts it
1.
ESSENTIAL ELEMENTS
Characteristics
1. Unilateral obligation imposed on the donor
2. Consensual perfected at time donor knows of
acceptance
Requisites: (CIDA)
Page 73 of 338
1.
2.
3.
4.
Requirements of a Donation:
1. Subject matter anything of value; present and
not future property, must not impair legitime
2. Cause anything to support a consideration,
generosity, charity, goodwill, past service, debt
3. Capacity to donate, dispose and accept donation
4. Form depends on value of donation
2.
b)
As to Consideration
1. Simple the cause of which is the pure liberality of
the donor in consideration of the donees merits
2. Remuneratory or compensatory it is given out of
gratitude on account of the services rendered by
the donee to the donor, provided they do not
constitute a demandable debt.
3. Modal imposes upon the donee a burden less
than the value of the gift
4. Onerous the value of which is considered the
equivalent of the consideration for which it is given
and thus governed by the rules of obligations and
contracts
c)
As to Effectivity of Extinguishment
1. Pure not subject to any condition (uncertain
event) or period
2. Conditional subject to suspensive or resolutory
condition
3. With a Term subject to a period, suspensive or
resolutory
CONDITIONAL DONATIONS
KINDS
3.
a) As to Effectivity
1. Inter vivos takes effect during the lifetime of the
donor
2. Mortis Causa takes effect upon the death of the
donor
3. Propter Nuptias made by reason of marriage and
before its celebration, in consideration of the same
and in favor of one or both of the future spouses.
DONATION INTER VIVOS
Disposition and acceptance
to take effect during
lifetime of donor and
donee
Already pertains to the
donee unless there is a
contrary intent
Formalities required follow law on donations
and certain kinds of
donations and law on
obligations and contracts
(suppletory)
Irrevocable at the instance
of the donor; may be
revoked only by reasons
provided by law
Revoked only for reasons
provided for by law (except
onerous donations)
a.
Revocable ad mutuum
(exclusive will of donor)
5.
6.
FORM
a. Onerous Donations
CAPACITY
a. Of Donor
Of Donee
Page 74 of 338
2.
4.
Page 75 of 338
Law
to
apply/
forms
Law on
donations
REMUNERATO CONDITI
RY
ONAL
Liberality or Valuable
merits of
consideradonee or
tion is
burden/
imposed
charge of
but value is
past
less than
services
value of
provided
thing
they do not donated
constitute
demandabl
e debt
Law on
Extent of
donations
burden
ONEROUS
Valuable
consideration given
Law on
obligations
imposed>
ObliCon
excess>
donation
Form of
acceptance
Required
Reservation
w/regard to
personal
support
and
legitime
Applicable
Warranty
against
eviction
and hidden
defects
In bad faith
only
Required
Required
Required
Applicable
Applicable
Not
Applicable
In bad faith
only
In bad faith
only
Applies
Revocation
Applicable
Applicable
2.
3.
Applicable
Applicable
DOUBLE DONATIONS:
Rule: Priority in time, priority in right
1. If movable one who first takes possession in good faith
2. If immovable one who recorded in registry of property
in good faith
No inscription, one who first took possession in
good faith
In absence thereof, one who presents oldest title
7.
4.
REVOCATION
Page 76 of 338
3.
BIRTH OF CHILD
Ipso jure
revocation, no
need for action,
court
decision is merely
declaratory
Extent: portion
which may impair
legitime of heirs
Property must be
returned
Alienation/mortg
ages done prior to
recording in
Register of Deeds:
If already sold or
cannot be
returned the
value must be
returned
If mortgaged
donor may
redeem the
mortgage with
right to recover
from donee
Fruits to be
returned at filing
of action for
revocation
Prescription of
action is 4 years
from birth, etc.
Action cannot be
renounced
Right of action
transmitted to
heirs
Action extends to
donees heirs
NONFULFILLMENT OF
CONDITION
Needs court
action
Extent: whole
portion but court
may rule partial
revocation only
Property in
excess
Alienations/mort
gages imposed
are void unless
registered with
Register of Deeds
INGRTITAUDE
Needs court
action
Extent: Whole
portion returned
Property to be
returned
Prior ones are
void; demand
value of property
when alienated
and cannot be
recovered or
redeemed from
3rd persons
Fruits to be
returned at filing
of complainant
Prescription is 4
years from nonfulfillment
Action cannot be
renounced in
advance
Right of action at
instance of donor
but may be
transmitted to
heirs
Action does not
extend to
Prescription is 1
year from
knowledge of
fact and it was
possible for him
to bring action
Page 77 of 338
donees heirs
Exception to rule on intransmissibility of action with regard
to revocation due to ingratitude:
1. Personal to the donor; general rule is heir cannot
institute if donor did not institute
2. Heirs can only file in the following cases:
a. Donor has instituted proceedings but dies before
bringing civil action for revocation
b. Donor already instituted civil action but died, heirs
can substitute
c. Donee killed donor or his ingratitude caused the
death of the donor
d. Donor died w/o having known the ingratitude done
e. Criminal action filed but abated by death
3. Can only make heirs of donee liable if complaint was
already filed when donee died
Inofficious donations:
1. Shall be reduced with regard to the excess
2. Action to reduce shall be filed by heirs who have
right to legitime at time of donation
3. Donees/creditors of deceased donor cannot ask for
reduction of donation
4. If there are 2 or more donation: recent ones shall
be suppressed
5. If 2 or more donation at same time treated
equally and reduction is pro rata but donor may
impose preference which must be expressly stated
in donation
6. Effect of declaration as inofficious: the donation is
annulled only as to the portion diminishing the
legitime
Page 78 of 338
Extra-ordinary
a. Just title is proved
b. Within time fixed by law
i. 10 years for movables
ii. 30 years for immovables
1. In concept of an owner
2. Public, peaceful, uninterrupted
GOOD FAITH
Page 79 of 338
TACKING PERIOD
There must be privity between previous and present
possessor
Possible when there is succession of rights
If character of possession different:
predecessor in bad faith possessor in good faith
use extraordinary prescription
PRESCRIPTION OF ACTIONS
PRESCRIPTIVE
ACTION
PERIOD
30 yrs
1. action over immovables - from
time possession is lost
10 yrs
1. mortgage action
2. action upon written contract
3. action upon obligation created by
law
4. action upon a judgment
8 yrs
1. action to recover movables - from
time possession is lost
6 yrs
1. action upon an oral contract
2. action upon a quasi-contract
4 yrs
1. upon injury to rights of plaintiff
2. upon a quasi-delict
1 yr
1. forcible entry and unlawful
detainer
2. defamation
5 yrs
1. others where periods are not fixed
by law
Rights not extinguished by prescription:
1. Demand right of way
2. Abate public/private nuisance
3. Declare contract void
4. Recover property subject to expressed trust
5. Probate of a will
6. Quiet title
O. NUISANCE
NUISANCE is any act, omission, establishment, business,
condition of property, or anything else which:
1. Injures or endangers the health or safety of others
2. Annoys or offends the senses
3. Shocks, defies or disregards decency or morality
4. Obstructs or interferes with the free passage of any
public highway or street, or any body of water
5. Hinders or impairs the use of property
Page 80 of 338
2.
Page 81 of 338
OBLIGATIONS
A. GENERAL PROVISIONS
================================
TOPICS UNDER THE SYLLABUS
A. GENERAL PROVISIONS
1. Definition
2. Elements of an Obligation
3. Different Kinds of Prestation
4. Classification of Obligations
5. Sources of Obligations
A. Art. 1157
B. Natural obligations
C. Extra-contractual obligations
=========================================
1. DEFINITION
OBLIGATION:
1. A juridical necessity to give, to do or not to do. (Art. 1156)
2. It is a legal bond whereby constraint is laid upon a
person or group of persons to act or forbear on behalf of
another person or group of persons.1
=========================================
=========================================
=========================================
2. ELEMENTS OF AN OBLIGATION
=========================================
Page 82 of 338
=========================================
5. Sources of Obligations
=========================================
=========================================
4. CLASSIFICATION OF OBLIGATIONS
A. Viewpoint of Sanction
a. Civil Obligations give a right of action to compel
their performance
b. Natural Obligations not based on positive law
but on equity and natural law, do not grant a right
of action to enforce their performance, but after
voluntary fulfillment by the obligor, they authorize
retention of what has been delivered or rendered
by reason thereof.
c. Moral Obligations those that cannot be enforced
by action but which are binding on the party who
makes it in conscience and natural law.
B. Viewpoint of Performance
a. Positive Obligation to give; to do.
b. Negative Obligation not to do.
C. Viewpoint of Subject Matter
a. Personal Obligation
b. Real Obligation
I. Determinate or Specific
II. Generic
III. Limited Generic
D. Viewpoint of Person Obliged
a. Unilateral only one party is bound
b. Bilateral both parties are bound
Distinguish a Civil Obligation from Natural Obligation
CIVIL OBLIGATION
NATURAL OBLIGATION
Art. 1156
Arts. 1423- 1430
Based on positive law
Based on equity and
natural justice
Enforceable by court
Cannot be compeled by
action
cour action but depends
exclusively upon the good
conscience of the debtor
=========================================
5. SOURCES OF OBLIGATION
A. ARTICLE 1157. OBLIGATIONS ARISE FROM
(1) Law;
(2) Contracts;
(3) Quasi-contracts;
(4) Acts or omissions punished by law; and
(5) Quasi-delicts
NOTE: The list is exclusive (Sagrado Orden v. Nacoco, [G.R.
No. L-37756, June 30, 1952]). However, some writers
expressly recognize that a UNILATERAL PROMISE can give
rise to obligations (Tolentino, Volume IV, p. 62).
A.1. LAW (OBLIGATION EX LEGE)
The law cannot exist as a source of obligations,
unless the acts to which its principles may be
applied exist.
Once the acts or facts exist, the obligations arising
therefrom by virtue of the express provisions of
the law are entirely independent of the agreement
of the parties. And such obligations and their
correlative rights are governed by the law by which
they are created.
It must be expressly or impliedly set forth and
cannot be presumed.
A.2. CONTRACTS (OBLIGATION EX CONTRACTU)
A juridical conventions manifested in legal form, by
virtue of which one or more persons bind
themselves in favor another, or others, or
reciprocally, to the fulfillment of a prestation to
give, to do, or not to do. (Sanchez Roman)
Obligations arising from contracts have the force
of law between the contracting parties and should
be complied with in good faith. (Art. 1159)
The terms of the contracts determine the
respective obligations of the parties.
If the terms of the contract are clear and leave no
doubt upon the contracting parties intention, such
terms should be applied in their literal meaning.
Neither party may unilaterally evade his obligation
in the contract, unless the contract authorizes it or
the other party assents.
Page 83 of 338
Page 84 of 338
Technical Estoppel
a. Estoppel by deed
b. Estoppel by record
c. Estoppel by judgment
d. Estoppel by laches
Statutory
Applies at law
Based on a fixed time
Page 85 of 338
================================
=========================================
Personal Obligations: obligations to do or not to do; where
the subject matter is an act to be done or not to be done
a. Positive obligation to do
b. Negative obligation not to do
Real Obligations: obligations to give; where the subject
matter is a thing which the obligor must deliver to the
obligee
a. Determinate or specific object is particularly
designated or physically segregated from all other
things of the same class
b. Generic object is designated by its class or genus
c. Limited Generic generic objects confined to a
particular class
a. Ex: An obligation to deliver one of my
horses (Tolentino, Volume IV, p. 91; De
Leon, 2003 ed., p. 7)
1. OBLIGATION TO GIVE
A. DUTIES OF OBLIGOR IN AN OBLIGATION TO GIVE A
DETERMINATE THING (Arts. 1163, 1164, 1166.)
To preserve or take care of the thing due with the diligence
of a good father of a family
EXCEPTION: if the law requires or the parties stipulate
another standard of care
B. DUTIES OF OBLIGOR IN AN OBLIGATION TO GIVE A
GENERIC THING (Arts. 1246 AND 1170)
To deliver the thing of the quality intended by the parties,
taking into consideration the purpose of the obligation,
intent of the parties, and other circumstances;
To be liable for damages in case of fraud, negligence, or
delay, in the performance of his obligation, or contravention
of the tenor thereof.
1. To deliver the fruits of the thing: Right to the fruits of the
thing from the time the obligation to deliver it arises;
2. To deliver its accessions and accessories (Art. 1166)
a. Accessions additions to or improvements upon a
thing. Ex: air conditioner in a car.
b. Accessories things joined to, or included with the
principal thing for its better use, embellishment or
completion. Ex: key of a house; frame of a picture (De
Leon, 2003 ed., pp. 37-38)
3. To deliver the thing itself (Specific Performance)
Page 86 of 338
2.
Page 87 of 338
TYPES OF FRAUD:
1. Causal Fraud (Dolo Causante): fraud employed in the
execution of the contract
2. Incidental Fraud (Dolo Incidente): fraud in
performance of obligation already existing because of a
contract
Page 88 of 338
FRAUD IN THE
PERFORMANCE/ DOLO
INCIDENTE
(ART. 1170)
Present
during
the
performance of a preexisting obligation
Purpose is to evade the
normal fulfillment of the
obligation
Results in the breach of an
obligation
Gives rise to a right in favor
of the creditor to recover
damages
Present
during
the
perfection of a contract
Purpose is to secure the
consent of another to enter
into the contract
Results in vitiation of
consent; voidable contract
Gives rise to a right of an
innocent party to annul the
contract
KINDS OF NEGLIGENCE
a. Quasi-Delict (Culpa aquiliana/culpa extra
contractual) source of obligation; wrong or
negligence committed independent of contract and
without criminal intent
b. Contractual Negligence (Culpa Contractual)
wrong or negligence in the performance of a
obligation/contract
c. Criminal Negligence (Culpa Criminal) wrong or
negligence in the commission of a crime
CRIME
WHAT IT
PUNISHABLE
Acts punishable
by law
CONDITION OF
THE MIND
Criminal intent
unnecessary
Necessary
Page 89 of 338
LIABILITY FOR
DAMAGES
Damages may be
awarded to injured
party
Some crimes do
not give rise to
civil liability
NATURE OF THE
RIGHT VIOLATED
AMOUNT OF
EVIDENCE
Violation of private
rights
Preponderance of
evidence
Public rights
COMPROMISE
Can be
compromised as
any other civil
liability
Presumption of
negligence
Criminal liability
can never be
compromised
PRESUMPTION
Proof beyond
reasonable
doubt
Presumption of
innocence
ON
NOT to do an
impossible thing
Condition is preexisting and NOT
dependent on the
fulfillment
of
impossible condition
for existence
Condition
IMPOSSIBLE
BUT
Obligation DIVISIBLE
VALID
VALID
DISREGARD
CONDITION
VOID
Page 90 of 338
A. SPECIFIC PERFORMANCE
To demand specific performance or fulfillment of the
obligation with a right to indemnity for damages
B. RESCISSION
It means to abrogate the contract from the beginning
and to restore the parties to their relative positions as if
no contract has been made.
It is to declare the contract void at its inception and to
put an end to it as though it never was.2
It is predicated on the breach of faith by any party that
violates the reciprocity between them.
NOTE: In the case of Adorable v. Court of Appeals [G.R. No.
119466, November 25, 1999], the Court held that unless a
debtor acted in fraud of his creditor, the creditor has no
right to rescind a sale made by the debtor to someone on
the mere ground that such sale will prejudice the creditors
rights in collecting later on from the debtor. The creditors
right against the debtor is only a personal right to receive
payment for the loan; it is not a real right over the lot
subject of the deed of sale transferring the debtors
property.3
C. DAMAGES
To demand payment of damages when it is a feasible
remedy
D. SUSIDIARY REMEDIES OF CREDITORS
1. Accion Subrogatoria action which the creditor may
exercise in the place of his negligent debtor in order to
preserve or recover for the patrimony of the debtor the
product of such action, and then obtain therefrom the
satisfaction of his own credit
2. Accion Pauliana action to revoke or rescind acts which
the debtor may have done to defraud his creditor.
3. Accion Directa - (Arts. 1652, 1608, 1729, 1893)
================================
Page 91 of 338
1. Pure Obligations
=========================================
1. PURE OBLIGATIONS
It is an unqualified obligation which is demandable
immediately. It is an obligation whose performance does
not depend upon a future and uncertain event, or past
event unknown to the parties. (Art. 1179)
=========================================
2. CONDITIONAL OBLIGATIONS
It is exactly the reverse of a pure obligation. The
performance in conditional obligations depends upon a
future or uncertain event or upon a past event unknown to
parties.
A. RESOLUTORY CONDITION
Demandable at once
Once the condition is established or acknowledged, the
right to demand performance immediately exists and
therefore the obligation concomitant to the right can
be demanded at once.
It is also known as condition subsequent
It extinguishes obligations
NOTE: In case of a contract with a reciprocal obligation, the
obligation of one is a resolutory condition of the obligation
of the other, the non-fulfillment of which entitles the other
party to rescind the contract.
B. SUSPENSIVE CONDITION
Not demandable at once
It gives rise to the performance of an obligation (ex.
Contract to Sell)
It is also known as condition precedent
It gives birth to obligations
C. POTESTATIVE CONDITION
The fulfillment of the condition entirely depends upon the
sole will of the debtor.
GENERAL RULE: All potestative conditions are void.
Page 92 of 338
2.
3.
=========================================
Page 93 of 338
Page 94 of 338
================================
================================
TOPICS UNDER THE SYLLABUS
D. JOINT AND SOLIDARY OBLIGATION
1. Joint (Divisible) Obligation
A. Concurrence of two or more creditors and/or
two or more debtors
A.1. Joint obligation is presumed, unless
otherwise indicated by the law or nature of
obligation (Art. 1207)
A.2. Obligation presumed to be divided into as
many equal shares as there are creditors or
debtors
A.3. Each credit is distinct from one another,
therefore a joint debtor cannot be required to
pay for the share of another with debtor,
although he may pay if he wants to (Art. 1209)
A.4. Insolvency of a joint debtor, others not
liable for his share (Art. 1209)
2. Joint (Indivisible) Obligation
A. Obligation cannot be performed in parts but
debtors are bound jointly
B. In case of failure of one joint debtor to perform
his part (share), there is default but only the guilty
shall be liable for damages
3. Solidary Obligation
A. Mutual agency among solidary debtors (Arts.
1214-1215)
B. Mutual guaranty among solidary debtors (Arts.
1216, 1217, 1222)
C. Each one of solidary creditors may do whatever
may be useful to the others, but not anything
prejudicial to them (Art. 1212)
C.1. Effect of any novation, compensation,
confusion or remission of debt executed by a
solidary creditor
4. Divisible and Indivisible (Art. 1225)
Page 95 of 338
=========================================
=========================================
Page 96 of 338
Released
a.
b.
=========================================
c.
d.
=========================================
e.
3. SOLIDARY OBLIGATION
f.
SOLIDARY OBLIGATION (Obligacion Solidaria) must be
expressed in stipulation or provided by law or by nature of
obligation
g.
h.
1.
2.
3.
EFFECTS:
Payment made before debt is due, no interest can
be charged, otherwise interest can be charged
Insolvency of one others are liable for share prorata
If different terms and conditions collect only
what is due, later on collect from any
No reimbursement if payment is made after
prescription or became illegal
Remission made after payment is made codebtor still entitled to reimbursement
Effect of insolvency or death of co-debtor still
liable for whole amount
Fault of any debtor everyone is responsible
price, damage and interest
Complete/ personal defense total or partial ( up
to amount of share only ) if not personal to him
4.
5.
a.
b.
c.
d.
e.
Page 97 of 338
Intention of parties
NOTES:
Divisibility or indivisibility of the obligation refers to the
performance of the prestation and not to the thing
which is the object thereof
Intention of parties should be taken into account to
determine whether obligation is divisible or not
Penalty of payment in
lieu of the principal must
be expressly granted
Creditor may demand
both if expressly granted
=========================================
Page 98 of 338
================================
E. EXTINGUISHMENT OF OBLIGATIONS
================================
TOPICS UNDER THE SYLLABUS
E. EXTINGUISHMENT OF OBLIGATIONS
1. Payment (Arts. 1236-1238)
A. Dation in payment (Art. 1245)
Page 99 of 338
Other Modes:
7. Annulment
8. Rescission
9. Fulfillment of resolutory condition
10. Prescription
Not Stated in the Civil Code:
11. Death of a Party in Personal Obligations
12. Mutual Desistance
13. Compromise
14. Impossibility of Fulfillment
15. Happening of Fortuitous Event
16. Arrival of Resolutory Period
17. Will of One of the Parties Due to Indeterminate
Duration or Nature of the Prestation/ Unilateral
Withdrawal in Partnerships
18. Change of Civil Status
19. Rebus Sic Stantibus (Art. 1267)
20. Want of Interest in Some Circumstances
21. Abandonment in Special Cases
22. Insolvency Judicially Declared and Debtor is Discharged
1. PAYMENT OR PERFORMANCE
Delivery of money and performance, in any other manner of
the obligation
REQUISITES FOR VALID PAYMENT/PERFORMANCE
1. With respect to prestation itself
a. Identity
b. Integrity or completeness
c. Indivisibility
2. With respect to parties - must be made by proper party
to proper party
a. Payor
1. Payor - the one performing, he can be the debtor
himself or his heirs or assigns or his agent, or anyone
interested in the fulfillment of the obligation; can be anyone
as long as it is with the creditor's consent
2. 3RD person pays/performs - only the creditor's consent;
if performance is done also with debtor's consent - he takes
the place of the debtor. There is subrogation except if the
3rd person intended it to be a donation
3. 3rd person pays/performs with consent of creditor but
not with debtor's consent, the repayment is only to the
extent that the payment has been beneficial to debtor
b. Payee
1.
2.
Deviation is slight
Omission/Defect is technical or unimportant
Must not be so material that intention of parties is not
attained
agreement subsequent
and independent from
the original contract is
entered into by the
parties to have the
property collaterizes in
the original agreement
as payment of the debt
Valid
a.
b.
c.
d.
e.
b.
c.
d.
EFFECTS OF ASSIGNMENT:
a. Creditors do not become the owner; they are
merely assignees with authority to sell
b. Debtor is released up to the amount of the net
proceeds of the sale, unless there is a stipulation
to the contrary
c. Creditors will collect credits in the order of
preference agreed upon, or in default of
agreement, in the order ordinarily established by
law
DATION IN PAYMENT DISTINGUISHED FROM CESSION IN
PAYMENT
DATION IN PAYMENT
CESSION IN PAYMENT
One creditor
Plurality of creditors
Not necessarily in state of Debtor must b partially or
financial difficulty
relatively insolvent
Thing
delivered
is Universality of property of
considered as equivalent of debtor is what is ceded
performance
Payment
extinguishes Merely releases debtor for
obligation to the extent of net proceeds of things
the value of the thing ceded of, assigned, unless
delivered as agreed upon, there is a contrary
proved or implied from the intention
conduct of the creditor
D. TENDER AND CONSIGNATION
TENDER -the act of offering the creditor what is due him
together with a demand that the creditor accept the same
(When creditor refuses w/o just cause to accept payment,
he becomes in mora accepiendi and debtor is released from
responsibility if he consigns the thing or sum due)
CONSIGNATION the act of depositing the thing due with
the court or judicial authorities whenever the creditor
cannot accept or refuses to accept payment; generally
requires prior tender of payment
REQUISITES OF VALID CONSIGNATION:
a. Existence of valid debt
e.
judicial
=========================================
OF
PERFROMANCE
IN
of
EXTENT
a. Total
KINDS
a. Principal accessory
also condoned
==========================================
TOPICS UNDER THE SYLLABUS
E. EXTINGUISHMENT OF OBLIGATIONS
4. Confusion or Merger
=========================================
4. CONFUSION OR MERGER
CONFUSION OR MERGER: character of debtor and
creditor is merged in same person with respect to same
obligation
REQUISITES:
a. It must take place between principal debtor and
principal creditor only
b. Merger must be clear and definite
c. The obligation involved must be same and identical
one obligation only
d.
=========================================
is
b. Partial
b. Accessory principal
still outstanding
c. Accessory obligation of
pledge condoned;
presumption
only,
rebuttable
b.
c.
d.
e.
f.
=========================================
one obligation
impossibility of payment
b.
c.
d.
e.
KINDS OF NOVATION:
1. REAL/OBJECTIVE change object, cause/consideration
or principal condition
2.
PERSONAL/SUBJECTIVE
i. Substituting person of debtor (passive)
EXPROMISION: initiative is from 3rd
person or new debtor; new debtor and
creditor to consent; old debtor released
from obligation; subject to full
reimbursement and subrogation if made
w/ consent of old debtor; if w/o consent
or against will , only beneficial
reimbursement; if new debtor is
insolvent, not responsible since w/o his
consent
DELEGACION: initiative of old debtor; all
parties to consent; full reimbursement;
if insolvent new debtor not
responsible old debtor because
obligation extinguished by valid
novation unless: insolvency already
existing and of public knowledge or
know to him at time of delegacion
1. Delegante old debtor
2. Delegatario - creditor
3. Delegado new debtor
two
obligations;
one
is
extinguished and new one created
new debtor is obliged to pay
================================
CONTRACTS
7. Effect of contracts (Art. 1311)
A. GENERAL PROVISIONS
================================
TOPICS UNDER THE SYLLABUS
A. GENERAL PROVISIONS
1. Essential Requisites (Art. 1261)
2. Kinds of Contracts
A. Consensual
B. Real
C. Formal or solemn
C.1. Donations (Arts. 748-749)
C.2. Partnership where real property
contributed (Arts. 1771, 1773)
C.3. Antichresis (Art. 2134)
C.4. Agency to sell real property or an interest
therein (Art. 1874)
C.5. Stipulation to charge interest (Art. 1956)
C.6. Stipulation limiting common carriers duty
of extraordinary diligence to ordinary diligence
(Art. 1744)
C.7. Chattel mortgage
C.8. Sale of large cattle
3. Formality (Arts. 1356, 1357, 1358)
4. Reformation of Contracts
5. Interpretation of Contracts
6. Defective Contracts
A. Rescissible contracts (Art. 1381)
A.1. Difference with rescission (resolution)
under Art. 1191
B. Voidable contracts (Arts. 1328-1344, 13901402)
C. Unenforceable contracts (Arts. 1403-1408,
1317)
D. Void contracts (Arts. 1409, 1346)
(1) Pactum commissorium (Arts. 2088, 2130,
1390)
(2) Pactum de non alienando (Art. 2130)
(3) Pactum leonine (Art. 1799)
=========================================
1. ESSENTIAL REQUISITES
ESSENTIAL ELEMENTS:
1. Consent
2. Subject Matter
3. Consideration
A. CONSENT
CONSENT meeting of minds between parties on subject
matter and cause of contract; concurrence of offer and
acceptance
REQUIREMENTS:
1. Must be manifested by the concurrence of the offer and
payment;
2. Parties are legally capacitate to enter into contracts
3. Consent must be intelligent, free, spontaneous, and real
AUTO CONTRACTS - made by a person acting in anothers
name in one capacity
COLLECTIVE CONTRACTS - will of majority binds a minority
to an agreement notwithstanding the opposition of the
latter
CONTRACTS OF ADHESION - one party has already a
prepared form of a contract, containing the stipulations he
desires, and he simply asks the other party to agree to them
if he wants to enter into the contract
NOTE: We follow the theory of cognition and not the theory
of manifestation.
Under our Civil Law, the offer and acceptance concur only
when the offeror comes to know, and not when the offeree
merely manifests his acceptance.
OFFER a proposal made by one party to another to enter
into a contract; must be certain or definite, complete and
intentional
Intimidation
REQUISITES:
b. Determining cause for the contract
c. Threatened act is unjust and unlawful
d. Real and serious
e. Produces a well grounded fear that the person
making it will carry it over
Reluctant consent a contract is valid even
though one of the parties entered into it against
his wishes and desires or even against his better
judgment. Contracts are also valid even though
they are entered into by one of the parties without
hope of advantage or profit. Martinez vs.
Hongkong and Shanghai Bank, [15 Phil 252]
3.
Mistake
Not only wrong conception of the thing but also
the lack of knowledge with respect to it (Manresa)
Fraud
When, through insidious words or machinations of
1 of the contracting parties, the other is induced to
WANT OF CAUSE
ABSENCE
OF
CAUSA
ILLEGALITY OF
CAUSA
FALSITY
OF
CAUSA
CAUSA
NOT
STATED
IN
CONTRACT
INADEQUACY OF
CAUSA
EFFECT
Void - produce no legal effect
Void - produce no legal effect
Voidable party must prove that
cause is untruthful; presumption of
validity but rebuttable
Presumed to Exist - burden of proof
is on the person assailing its
existence
Does not Invalidate Contract per se
Exceptions:
* Fraud
* Mistake
* Undue influence
* Cases specified by law
SIMULATED CONTRACTS
1. Absolute no intention to be bound at all, fictitious
only void from beginning
2. Relative there is intention to be bound but
concealed; concealed contract binds:
c. No prejudice to 3rd persons
d. Not contrary to law, morals, etc.
B. OBJECT
REQUISITES:
1. Within the commerce of man either existing or in
potency
2. Licit or not contrary to law, good customs
3. Possible
4. Determinate as to its kind or determinable w/o need to
enter into a new contract
5. Transmissible
THINGS WHICH CANNOT BE THE OBJECT OF CONTRACT:
1. Things which are outside the commerce of men
2. Intransmissible rights
3. Future inheritance, except in cases expressly authorized
by law
4. Services which are contrary to law, morals, good
customs, public order or public policy
5. Impossible things or services
6. Objects which are not possible of determination as to
their kind
C. CAUSE (CAUSA)
CAUSA- Immediate, direct and most proximate reason why
parties enter into contract
REQUISITES:
1. It must exist
2. It must be true
3. It must be licit
MOTIVE:
Purely private reason; illegality does not invalidate contract
except when it predetermines purpose of contract; when
merged into one
CAUSE DISTINGUISHED FROM MOTIVE
CAUSE
MOTIVE
Direct and most proximate Indirect or remote reasons
reason of a contract
Objective and juridical
reason of contract
Cause us always same for
each contracting party
Legality or illegality of cause
affects the existence or
validity of the contract
obligation
Psychological
or
purely
personal reason
The motive differs for each
contracting party
Legality or illegality of
motive does not affect the
existence or validity of
contract
contract
6.
7.
8.
E. TEST OF BENFICIAL SITUATION
The fairest to determine whether the interest of
3rd person in a contract is a stipulation pour autrui
or merely an incidental interest is to rely upon the
intention of the parties as disclosed by their
contract. Determine whether contracting parties
desired to tender him such interest Uy Tam vs.
Leonard, [30 Phil 471]
=========================================
9.
=========================================
2. KINDS OF CONTRACTS
1. As to perfection or formation
a. Consensual perfected by agreement of parties
b. Real perfected by delivery (e.g. commodatum,
pledge, deposit)
c. Formal/solemn perfected by conformity to
essential formalities (donation )
2. As to cause
a. Onerous with valuable consideration
b. Gratuitous founded on liberality
c. Remunerative prestation is given for service
previously rendered not as obligation
3. As to importance or dependence of one upon another
a. Principal contract may stand alone
b. Accessory depends on another contract for its
existence; may not exist on its own
c. Preparatory not an end by itself; a means
through which future contracts may be made
4. As to parties obliged
a. Unilateral only one of the parties has an
obligations
b. Bilateral both parties are required to render
reciprocal prestations
5. As to form
a. Common or informal require no particular form
STAGES IN A CONTRACT:
1.
2.
3.
Preparation - negotiation
Perfection/birth
Consummation performance
FORMAL CONTRACTS
1. Donation
2.
Partnership
A partnership may be constituted in any form,
except where immovable property or real rights
are contributed thereto, in which case a public
instrument shall be necessary. (Article 1771)
A contract of partnership is void, whenever
immovable property is contributed thereto, if an
inventory of said property is not made, signed by
the parties, and attached to the public instrument.
(Article 1773)
7.
Chattel Mortgage
By a chattel mortgage, personal property is
recorded in the Chattel Mortgage Register as a
security for the performance of an obligation. If
the movable, instead of being recorded, is
delivered to the creditor or a third person, the
contract is a pledge and not a chattel mortgage.
8.
=========================================
3.
Antichresis
The amount of the principal and of the interest
shall be specified in writing; otherwise, the
contract of antichresis shall be void
4.
5.
Interest
No interest shall be due unless it has been
expressly stipulated in writing (Article 1876)
6.
Ordinary Diligence
A stipulation between the common carrier and the
shipper or owner limiting the liability of the former
for the loss, destruction, or deterioration of the
goods to a degree less than extraordinary diligence
shall be valid, provided it be:
o
3. FORM OF CONTRACTS
FORM: in some kind of contracts only as contracts are
generally consensual; form is a manner in which a contract
is executed or manifested
1. Informal may be entered into whatever form as long
as there is consent, object and cause
2. Formal required by law to be in certain specified form
such as: donation of real property, stipulation to pay
interest, transfer of large cattle, sale of land thru agent,
contract of antichresis, contract of partnership,
registration of chattel mortgage, donation of personal
prop in excess of 5,000
3. Real creation of real rights over immovable prop must
be written
WHEN FORM IS IMPORTANT:
1. For validity (formal/solemn contracts)
2. For enforceability (statute of frauds)
3. For convenience
3.
4.
NOTE:
Prescribes in 10 years from date of execution of
instrument
When one of the parties has brought an action to
enforce the instrument, no subsequent reformation can be
asked. (principle of estoppel)
Reformation is based on justice and equity
When there is no meeting of the minds, the proper
remedy is annulment and not reformation
WHEN REFORMATION NOT AVAILABLE:
1.
Simple donation inter vivos
2.
Wills
3.
When real agreement is void
4.
Estoppel when party has brought suit to enforce it
=========================================
5. INTERPRETATION OF CONTRACTS
GENERAL RULE: If the terms of the contract are clear and
leave no doubt upon the intention of the contracting
parties, the literal meaning of its stipulations shall control.
(Art. 1370)
EXCEPTION: It is alleged and proved that the intention of
the parties is otherwise.
Sec. 13 Rule 130 of the Rules of Court: When an
instrument consists partly of written words and partly of a
printed form, and the two are inconsistent, the former
controls the latter.
NOTE:
1. If the law is clear, there is no room for interpretation
2. In case of ambiguity, the most important guideline is
intention of the parties.
=========================================
6. DEFECTIVE CONTRACTS
KINDS OF DEFECTIVE CONTRACTS:
A. RESCISSIBLE CONTRACTS
RESCISSIBLE CONTRACTS - Those which have caused a
particular economic damage either to one of the parties or
to a 3rd person and which may be set aside even if valid. It
may be set aside in whole or in part, to the extent of the
damage caused
REQUISITES:
(a) Contract must be rescissible
Under Art 1381: Contracts entered into by persons
exercising fiduciary capacity:
1.
2.
3.
4.
5.
3.
4.
e.
f.
In state of drunkenness
In state of hypnotic spell
MISTAKE
False belief of something which is contrary to the real
intention of the parties
REQUISITES:
a. Refers to the subject of the thing which is the object of
the contract
b. Refers to the nature of the contract
c. Refers to the principal conditions in an agreement
d. Error as to person - when it is the principal
consideration of the contract
e. Error as to legal effect - when mistake is mutual and
frustrates the real purpose of parties
VIOLENCE
Serious or irresistible force is employed to wrest consent
INTIMIDATION
One party is compelled by a reasonable and well-grounded
fear of an imminent and grave danger upon person and
property of himself, spouse, ascendants or descendants
(moral coercion)
UNDUE INFLUENCE
Person takes improper advantage of his power over will of
another depriving latter of reasonable freedom of choice
The doctrine on reluctant consent provides that a contract
is still valid even if one of the parties entered it against his
wishes or even against his better judgment. Contracts are
also valid even though they are entered into by one of the
parties without hope of advantage or profit. Martinez vs.
HSBC, [12 Phil 252]
FRAUD
Thru insidious words or machinations of contracting parties,
other is induced to enter into contract w/o w/c he will not
enter (dolo causante)
KINDS OF FRAUD IN THE PERFORMANCE OF OBLIGATION
OR CONTRACTS
a. Causal Fraud (dolo causante) deception of serious
character without which the other party would not have
entered into; contract is VOIDABLE (Art. 1338)
b. Incidental Fraud (dolo incidente) deception which are
not serious and without which the other party would still
have entered into the contract; holds the guilty party liable
for DAMAGES (Art. 1344)
c. Tolerated Fraud includes minimizing the defects of
the thing, exaggeration of its god qualities and giving it
qualities it does not have; LAWFUL misrepresentation
NOTE:
Expression of an opinion not fraud unless made by expert
and other party relied on the formers special knowledge
Fraud by third person does not vitiate consent; only
action for damages except if there is collusion between one
party and the third person, or resulted to substantial
mistake, mutual between parties.
CAUSES OF EXTINCTION OF ACTION TO ANNUL
a. PRESCRIPTION - Period to bring an action for Annulment
i. Intimidation, violence, undue influence - 4 years from
time defect of consent ceases
ii. Mistake, fraud 4 years from time of discovery
iii.Incapacity - From time guardianship ceases
b. RATIFICATION
REQUISITES:
i. Knowledge of reason rendering contract
voidable
ii. Such reason must have ceased, except in case of
ratification effected by the guardian to contracts
entered into by an incapacitated,
iii. The injured party must have executed an act
which expressly or impliedly conveys an
intention to waive his right
c. LOSS OF THE THING which is the object of the contract
through fraud or fault of the person who is entitled to
annul the contract
NOTE: Object is lost through a fortuitous event, the contract
can still be annulled, but the person obliged to return the
same can be held liable only for the value of the thing at the
time of the loss, but without interest thereon.
i.
ii.
iii.
iv.
v.
vi.
STATUTE OF FRAUDS:
Agreement to be performed within a year after making
contract
Special promise to answer for debt, default or
miscarriage of another
Agreement made in consideration of promise to marry
Agreement for sale of goods, chattels or things in action
at price not less than 500; exception: auction when
recorded sale in sales book
Agreement for lease of property for more than one
year and sale of real property regardless of price
Representation as to credit of another
TWO WAYS OF CURING UNENFORCEABLE CONTRACTS:
a. Failure of defendant to object in time, to the
presentation of parole evidence in court, the defect of
unenforceability is cured
b.
NOTES:
The contracts/agreements under the Statute of Frauds
require that the same be evidenced by some note or
memorandum or writing, subscribed by the party
charged or by his agent, otherwise, the said contracts
shall be unenforceable.
D. VOID OR INEXISTENT
VOID OR INEXISTENT of no legal effect
CHARACTERISTICS:
a. It produces no effect whatsoever either against
or in favor of anyone
b. There is no action for annulment necessary as
such is ipso jure. A judicial declaration to that
effect is merely a declaration
c. It cannot be confirmed, ratified or cured
d. If performed, restoration is in order, except if
pari delicto will apply
e. The right to set up the defense of nullity cannot
be waived
f. Imprescriptible
g. Anyone may invoke the nullity of the contract
whenever its juridical effects are asserted
against him
KINDS OF VOID CONTRACT:
a. Those lacking in essential elements: no consent,
no object, no cause (inexistent ones) essential
formalities are not complied with ( ex: donation
propter nuptias should conform to formalities of
a donation to be valid )
i. Those w/c are absolutely simulated or
fictitious no cause
ii. Those which cause or object did not exist at
the time of the transaction no cause/object
iii. Those whose object is outside the commerce
of man no object
iv. Those w/c contemplate an impossible service
no object
v. Those w/c intention of parties relative to
principal object of the contract cannot be
ascertained
b. Prohibited by law
c. Those expressly prohibited or declared void by
law - Contracts w/c violate any legal provision,
whether it amounts to a crime or not
d. Illegal/Illicit ones Those whose cause, object or
purpose is contrary to law, morals, good customs,
public order or public policy ; Ex: Contract to sell
marijuana
OTHER VOID CONTRACTS:
e.
f.
g.
7. EFFECT OF CONTRACTS
Contracts take effect only between the parties, their assigns
and heirs, except in case where the rights and obligations
arising from the contract are not transmissible by their
nature, or by stipulation or by provision of law. The heir is
not liable beyond the value of the property he received
from the decedent. (Article 1311)
If a 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. A mere incidental benefit or interest of a person
is not sufficient. The contracting parties must have clearly
and deliberately conferred a favor upon a third person.
(Article 1311)
SALES
A. INTRODUCTION
================================
TOPICS UNDER THE SYLLABUS
A. Introduction
1. Definition of sales (Arts. 1458, 1470)
2. Essential requisites of a contract of sale (Art.
1505)
3. Stages of contract of sale
4. Obligations created (Art. 1165)
5. Characteristics of a contract of sale
6. Sale is title and not mode
7. Sale distinguished from other contracts
8. Contract of sale/contract to sell
=========================================
4. OBLIGATIONS CREATED
2 sets of real obligations to give
Obligation of the Seller:
a. to transfer ownership and
b. to deliver possession
=========================================
=========================================
=========================================
=========================================
=========================================
=========================================
1. Consent
=========================================
========================================
=========================================
Lease
Use of thing is for a specified
period only with an
obligation to return
Sale
Obligation to absolutely
transfer ownership of thing
Consideration is rent
Lessor need not be owner
Consideration is price
Seller needs to be owner of
thing to transfer ownership
Principal contract
Buyer becomes owner of
thing; in agency
Seller warrants
Not unilaterally
revocable
Seller receives profit
Real Contract
=========================================
=========================================
================================
2. ABSOLUTE INCAPACITY
MINORS, INSANE AND DEMENTED PERSONS, AND DEAFMUTES
Contracts are voidable, subject to annulment or
ratification
Also includes:
-
State of drunkenness
Hypnotic spell
=========================================
3. RELATIVE INCAPACITY
A. SPOUSES - A spouse may, without the consent of the
other spouse, enter into sales transactions in the regular
pursuit of their profession, vocation, or trade. These
contracts are void.
GENERAL RULE: The husband and the wife cannot sell
property to each other.
EXCEPTION:
When a separation of property was agreed upon in the
marriage settlement
=========================================
Emptio rei
speratae
Sale of an
expected thing
Sale is subject to
the condition;
that the thing
will exist; if it
does not, there
is no contract
Uncertainty is
with regard to
the quantity and
quality of the
thing and not
the existence of
the thing
Object is a
future thing
Emptio spei
Sale of a mere hope or
expectancy that the thing will
come to existence; sale of the
hope itself
Sale is effective even if the
thing does not come into
existence, unless it is a vain
hope (Art 1461 Sale of a vain
hope or expectancy is void)
The uncertainty is with regard
to the existence of the thing
=========================================
================================
Requisites:
1. Things
A. Possible - existing, future, and contingent
i.Whether the subject matter is of a type and
nature that exists or could be made to exist to
allow the seller reasonable certainty of being
able to comply with his obligations
ii.Minimum requirement of potential existence:
taking into consideration the state of science
and technology at the time of perfection of
the contract
B. Licit
B.1. Not outside the commerce of man
B.2. If illicit, contract is void
B.3. Prohibited:
i. Animals with contagious diseases
ii. Sale of future inheritance
C. Determinate or determinable
i. Determinate: particularly designated or physically
segregated from all others of the same class;
always specific
ii. Determinable: always generic
a) Thing is capable of being made determinate
b) Without the necessity of a new or further
contract between the parties.
Future inheritance
b.
Service
=========================================
2. PARTICULAR KINDS
GOODS THAT MAY BE THE OBJECTS OF SALE
1. Existing goods goods owned or possessed by the
seller at the time of perfection
2.
NOTES:
Quantity of subject matter is not essential for perfection;
must determine nature and quality of subject matter
Generic things may be the object of sale, but the
obligation to deliver the subject matter can only be
complied with when the subject matter has been made
determinate (either by physical segregation or
particular designation)
================================
================================
ii.
E. PRICE
================================
Ascertainable:
a.
b.
c.
d.
e.
1. MEANING OF PRICE
PRICE The sum stipulated as the equivalent of the thing
sold and also every incident taken into consideration for the
fixing of the price, put to the debit of the vendee and agreed
to by him.
Note: When the 3rd party is unwilling to set the price, the
parties may not ask the court to fix the price because the
condition imposed on the contract has not happened yet
and thus, no enforceable contract has arisen.
EFFECT WHERE PRICE IS SIMULATED
The act may be shown to have been in reality a
donation, or some other act or contract
=========================================
If there is a real price but what is stated in the
contract is not the one intended to be paid (only
relatively simulated): the contract of sale is valid
but subject to reformation (false price)
A. Real
When at the perfection of the contract of sale, there is
every intention on the buyer to pay the price, and every
expectation on the part of the seller to receive such price as
the value of the subject matter he obligates himself to
deliver. (Test of intention)
1.
Specific performance or
2.
Rescission.
=========================================
=========================================
=========================================
3.
4.
5.
6.
7.
4. INADEQUACY OF PRICE
EFFECT OF GROSS INADEQUACY OF PRICE
=========================================
================================
4. Offer floated
without
period/without
condition
5. Offer is floated
and there
is counter-offer
6. Offer is floated
7. Offer accepted
absolutely
1. PREPARATORY
3 STAGES IN LIFE OF A CONTRACT OF SALE
A. Policitacion/Negotiation Stage - offer is floated,
acceptance is floated but they do not meet; the time when
parties indicate their interest but no concurrence of offer
and acceptance.
B. Perfection - concurrence of all requisites; meeting of the
minds.
C. Consummation - parties perform their respective
undertakings
A. PREPARATORY
I.
b.
Nominate
c.
d.
Onerous
e.
Commutative
f.
g.
Preparatory
RULES:
1. Offer is floated
3. Offer floated w/
condition
Not conditional
Not subject to specific
performance
b.
=========================================
2. PERFECTION OF SALES
RIGHT OF FIRST REFUSAL:
1. Creates a promise to enter into a contract of
sale and it has no separate consideration, not
subject to specific performance because there is
no contractual relationship here and it is not an
obligation to give (not a real contract)
2.
1.
2.
3.
=========================================
b.
c.
2.
3.
4.
=========================================
B.
2.
3.
================================
=========================================
================================
G. TRANSFER OF OWNERSHIP
G. Transfer of Ownership
1. Manner of Transfer (Arts. 1477, 1496-1501)
2. When delivery does not transfer title
3. Kinds of delivery
4. Double sales (Art. 1544)
5. Property Registration Decree
5.1. Requisites for registration of deed of sale
in good faith
5.2. Accompanied by vendors duplicate
certificate of title, payment of capital gains tax,
and documentary tax registration fees
=========================================
1. MANNER OF TRANSFER
NOTE: Stage where parties both comply with their
obligation.
OBLIGATIONS OF THE SELLER
1. Preserve subject matter (proper diligence of a good father
of a family unless law or parties stipulate another standard)
2. Deliver transfer ownership and deliver object
3. Deliver fruits and accessories
4. Warrant subject matter against eviction and hidden
defects
A. Delivery of the Thing - Transfer ownership (tradicion)
covers twin obligations of the seller which are:
1. To transfer the ownership; and
2. To deliver a determinate thing
B. Delivery of the thing together with the payment of the
price, marks the consummation of the contract of sale. PNB
v. Ling, [69 Phil 611, October 5, 1927]
The act of delivery must be coupled with the intention of
delivering the thing and putting the buyer under control.
Norkis Distributor v. CA, [195 SCRA 694, February 7, 1991]
=========================================
=========================================
Symbolic delivery
Constitutum possessarium
5.
Quasi-tradition
B.
II.
2.
3.
4.
I.
Tradition by operation of law
A.
b.
c.
d.
E.
At reasonable hour
E. EFFECTS OF DELIVERY
GENERAL RULE: The ownership of the thing sold shall be
transferred to the buyer upon the actual or constructive
delivery thereof.
EXCEPTION: When the contrary is stipulated such in the
cases of:
1. Contract to sell
1.
2.
SALE BY DESCRIPTION/SAMPLE
1.
2.
3.
=========================================
G. OBLIGATIONS OF BUYER
1. Pay the price
o
4. DOUBLE SALE
GENERAL RULE: FIRST IN TIME, PRIORITY IN RIGHT
When does it apply: when not all requisites embodied in
Art. 1544 concur.
I.
transactions
2.
3.
4.
must
2.
3.
4.
CONDITION
1. Effect of Non-Fulfillment of Condition
The other party may
a. refuse to proceed with the contract
b.
=========================================
================================
H. RISK OF LOSS
CIVIL LAW REVIEWER
================================
TOPICS UNDER THE SYLLABUS
H. Risk of Loss
1. General Rule (Arts. 1263, 1189)
2. When loss occurred before perfection
3. When loss occurred at time of perfection
(Arts. 1493 and 1494)
4. When loss occurred after perfection but
before delivery
5. When ownership is transferred (Art. 1504)
=========================================
1. GENERAL RULE
Legal consequences from point of perfection are the
same in both legal systems: upon perfection of an
unconditional contract of sale involving specific or
determinate subject matter, the risk of loss
deterioration and the benefits of fruits and
improvements, were fro the account of the buyer.
If Subject matter is GENERIC, Simply replace item.
BEFORE PERFECTION
3.
Tolentino: SELLER
4.
AFTER DELIVERY
Res perit domino
Delivery extinguishes ownership vis-a-vis the
seller and creates a new one in favor of the
buyer
================================
I. DOCUMENTS OF TITLE
================================
TOPICS UNDER THE SYLLABUS
I. Documents of Title
1. Definition (Art. 1636)
2. Purpose of documents of title
3. Negotiable documents of title
4. Non-negotiable documents of title
5. Warranties of seller of documents of title (Art.
1516)
6. Rules on levy/garnishment of goods (Arts.
1514, 1519, 1520)
=========================================
2.
AT PERFECTION
=========================================
DOCUMENTS OF TITLE
1. DEFINITION
ii.
2.
3.
=========================================
=========================================
=========================================
2. PURPOSE OF DOCUMENTS
=========================================
=========================================
Warranties on Negotiation
1. The document is genuine
2.
3.
4.
=========================================
NON NEGOTIABLE:
=========================================
b.
NEGOTIABLE:
o
c.
d.
Negotiation is enjoined
e.
NEGOTIATION
ASSIGNMENT
Transferor/holder
acquires title to goods
PERFECTION STAGE
a.
b.
c.
GENERAL RULE:
Co-owner sells whole property prior to partition sale
of property itself is void but valid as to his spiritual
share
PERFECTION STAGE
a. Valid sale buyer acquires title of goods
d.
e.
2.
CONSUMMATION STAGE
a.
2.
CONSUMMATION STAGE
o
Valid sale if title has not yet been avoided,
buyer buys goods under following condition:
in good faith
for value
================================
2.
3.
=========================================
a.
b.
c.
d.
=========================================
REQUISITES:
1. Subject matter goods
2. Seller is unpaid not completely paid or received
negotiable instrument under a condition and condition has
been breached by reason of dishonor
3. Physical possession is with seller
=========================================
Stoppage In Transitu
Goods are in transit
Requisites when goods are in transit
1.
2.
3.
2.
3.
2.
3.
4.
B.
Expressly stipulated
2.
================================
K. PERFORMANCE OF CONTRACT
================================
TOPICS UNDER THE SYLLABUS
K. Performance of Contract
1. Delivery of thing sold
(1) Sale of movables (Arts. 1522, 1537, 1480)
(2) Sale of immovables (Arts. 1539, 1543)
(3) Inspections and Acceptance
2. Payment of price
=========================================
b.
c.
B. IMMOVABLES
o
iii.
i.
ii.
ii.
If Less in area:
Rescission
Proportional reduction of price: LACK IN
AREA SHLD NOT BE LESS THAN 1/10 OF
AREA AGREED UPON
iii.
If Greater in area:
2.
=========================================
1. EXPRESS WARRANTIES
I. Condition
1.
2.
=========================================
2. PAYMENT OF PRICE
II. Warranties
A statement or representation made by the seller
contemporaneously and as a part of the contract of sale,
having reference to the character, quality, or title of the
goods, and by which he promises or undertakes to insure
that certain facts are or shall be as he then represents
Express Warranties
REQUISITES:
1.
2.
3.
4.
================================
L. WARRANTIES
================================
TOPICS UNDER THE SYLLABUS
L. Warranties
1. Express warranties
=========================================
Partial Eviction
=========================================
2. Implied Warranties
Deemed included in all contracts of sale whether parties are
actually aware or not, whether they were intended or not;
by operation of law
1.
5.
1.
2.
Not applicable to
mortgagee, pledge
sheriff,
a.
b.
Warranty
cannot
be
enforced
aforementioned requisites concur
c.
d.
e.
auctioneer,
b.
c.
2.
3.
4.
1.
Rescission
2.
Mutual restitution
3.
until
REQUISITES:
a. Immovable sold is encumbered with nonapparent
burden or servitude not mentioned in the agreement
b.
c.
d.
4.
2.
3.
a.
b.
d.
d.
e.
f.
Defects on animals
a. Even in the case of professional inspection but
hidden defect is of such nature that expert
knowledge is not sufficient to discover it - defect
shall be considered as REDHIBITORY
b.
c.
e.
f.
c.
g.
5.
2.
3.
4.
3. EFFECTS OF WARRANTIES
=========================================
4. EFFECTS OF WAIVER
Waiver in Warranty against eviction - Parties may increase
or diminish implied warranty against eviction; but effect
depends on good faith or bad faith on the part of the seller.
3.
================================
5.
Waiver to a specific case of eviction - wipes out
warranty as to that specific risk but not as to eviction caused
by other reasons.
M. BREACH OF CONTRACT
================================
TOPICS UNDER THE SYLLABUS
M. Breach of Contract
1. Remedies of the seller (Arts. 1636, 1594)
(1) Sale of movables
2. Recto Law: sale of movables on installment
(Arts. 1484-1486)
3. Sale of immovables
(1) PD 957, sec. 23, 24
(2)Maceda Law: sale of immovables on
Installment
4. Remedies of the Buyer
(1) Sale of movable
=========================================
2.
3.
=========================================
Rescission
1. When chosen, there is correlative obligation to restitute
2. But stipulations that installments paid are forfeited are
valid if not unconscionable
3. Deemed chosen when:
Notice of rescission is sent
-
Foreclosure
i. Barring effect on recovery of balance
ii. Extent of barring effect: purchase price
iii. Exception: mortgagor refuses to deliver property to
effect foreclosure, recover also expenses incurred in
attorneys fees, etc. (Perverse Buyer-Mortgagor)
=========================================
3. SALE OF IMMOVABLES
Remedies of Seller
Anticipatory breach
1. Seller has reasonable grounds to fear loss of immovable
sold and its price, sue for RESCISSION
2.
4.
IMMOVABLES (BY INSTALLMENT)
Art 1592 Applies only to contract of sale
MACEDA LAW
1.
2.
1.
Excluded:
a.
Industrial
b.
Commercial
c.
=========================================
TOPICS UNDER THE SYLLABUS
M. BREACH OF CONTRACT
3. Remedies of the Buyer
=========================================
4. REMEDIES OF THE BUYER
RESCIND
Other rights:
o
2.
3.
a.
2.
b.
3.
Condonation or remission
4.
5.
Compensation
6.
Novation
7.
Annulment
8.
Rescission
9.
10.
Prescription
c.
=========================================
TOPICS UNDER THE SYLLABUS
N. EXTINGUISHMENT OF SALE
2. Conventional Redemption
================================
=========================================
N. EXTINGUISHMENT OF SALE
================================
TOPICS UNDER THE SYLLABUS
N. Extinguishment of Sale
1. Causes (Arts. 1600, 1231)
2. Conventional redemption (Art. 1601)
3. Equitable mortgage (Arts. 1602-1604)
4. Distinguish from option to buy (Art. 1602)
5. Period of redemption (Art. 1606)
6. Exercise of the right to redeem (Art. 1616)
7. Legal redemption (Art. 1619)
8. Age redemption (Art. 1619)
2. CONVENTIONAL REDEMPTION
Only extinguishes obligations pertaining to
contract of sale, not extinguish contract itself; only
applies to contract of sale
a.
b.
Expenses of contract,
c.
d.
e.
=========================================
1. CAUSES
I. GROUNDS (same grounds whereby obligations in general
are extinguished)
1.
Payment or performance
b.
=========================================
TOPICS UNDER THE SYLLABUS
N. EXTINGUISHMENT OF SALE
3. Equitable Mortgage
=========================================
3. EQUITABLE MORTGAGE
One which lacks the proper formalities, form of words, or
other requisites prescribed by law for a mortgage, but
shows the intention of the parties to make the property
subject of the contract as security for a debt and contains
nothing impossible contrary to law. Cachola v. CA, [208
SCRA 496]
=========================================
TOPICS UNDER THE SYLLABUS
N. EXTINGUISHMENT OF SALE
4. Distinguish from option to buy
=========================================
b.
c.
d.
e.
f.
=========================================
TOPICS UNDER THE SYLLABUS
N. EXTINGUISHMENT OF SALE
5. Period of Redemption
=========================================
5. PERIOD OF REDEMPTION
a.
b.
c.
d.
e.
f.
b.
=========================================
TOPICS UNDER THE SYLLABUS
N. EXTINGUISHMENT OF SALE
6. Exercise of the Right to Redeem
IN CASE OF MULTI-PARTIES
1. When an undivided thing is sold because coowners cannot agree that it be allotted to one of
them vendee a retro may compel the vendor to
redeem the whole thing
2.
When an undivided thing is sold by co-owners / coheirs, vendors a retro may only exercise his right
over his respective share; vendee a retro may
demand that they must come to an agreement
first and may not be compelled to consent to a
partial redemption
3.
4.
=========================================
EFFECT WHEN THERE IS NO REDEMPTION MADE
i.
Jurisprudence before the NCC: buyer a retro
automatically acquires full ownership
ii.
FRUITS
What controls is the stipulation between parties as regards
the fruits;
If none:
a. At time of execution of the sale a retro there are
visible or growing fruits there shall be no prorating at time of redemption if no indemnity was
paid by the vendee a retro
b.
PRE-EMPTION
1. Arises before sale
2. No rescission because no
sale exists yet
3. The action is directed
against prospective seller
REDEMPTION
Arises after sale
There can be rescission of
the original sale
Action is directed against
buyer
=========================================
=========================================
7. LEGAL REDEMPTION
LEGAL REDEMPTION
Only applies to contracts of sale.
The right to be subrogated upon the same terms and
conditions stipulated in the contract, in the place of
one who acquires the thing by (1) purchase OR (2) by
dation in payment OR (3) by other transaction whereby
ownership is transmitted by onerous title.
a.
Among co-heirs
i.
ii.
d.
b.
Among co-owners
i. any or all of co-owners sells their shares to 3
person
c.
rd
Redemption of homesteads
b.
c.
1.
3.
4.
=========================================
TOPICS UNDER THE SYLLABUS
N. EXTINGUISHMENT OF SALE
8. Age Redemption
=========================================
5.
6.
ii.
2.
3.
II.
2.
III.
EFFECTS OF ASSIGNMENT
1.
2.
3.
4.
5.
IV.
TRANSFER OF OWNERSHIP
1.
2.
3.
4.
VII.
V.
EFFECT OF PAYMENT
ASSIGNMENT OF CREDIT
1.
OF
DEBTOR
c.
d.
1.
After Notice
2.
a.
3.
b.
VI.
AFTER
b.
2.
He warrants the existence and legality of credit there is warranty except when expressly sold as a
doubtful account
a.
b.
a.
NOTE:
IX.
1.
2.
is
to
presumably
preserve
the
tenement
================================
================================
================================
================================
KINDS OF HEIRS
H. SUCCESSION
=================================
=================================
I. GENERAL PROVISIONS
SUCCESSION mode of acquisition by virtue of which the
property, rights and obligations to the extent of the value of
the inheritance, of a person are transmitted through his
death to another or others either by his will or by operation
of law. (Art. 774)
ii.
Preterition
b.
Imperfect disinheritance
2.
Testamentarysuccession by will
c.
After-acquired properties
3.
d.
4.
1.
ELEMENTS OF SUCCESSION
I.
Subjective Element
A.
B.
Successors
i.
II.
Property and
obligations
transmissible
rights
and
RIGHTS EXTINGUISHED
TRANSMISSIBLE)
ii.
BY
1.
Support
2.
Usufruct
3.
Those
arising
consideration
4.
Personal easements
5.
Partnership rights
6.
Agency
7.
Life Annuity
DEATH
from
(NOT
personal
(1) In General
(a) Definition and characteristics (Arts.
783-787)
(2) Testamentary capacity and intent (Arts.
796-803)
(a) Age requirement (Art. 797)
(b) Soundness of mind (Arts. 798-801)
(3) Form
(a) Rules governing the formal validity of
wills (Arts. 17, 815-817, 819)
(b) Common requirements (Art. 804)
(c) Notarial wills
(d) Holographic wills
(e) Joint wills (Arts. 818-819)
(4) Codicils (Arts. 825-826)
(a) Definition and formal requirements
(5) Incorporate by reference (Art. 827)
(6) Revocation (Arts. 828-834)
(a) Kinds (Art. 830)
(7) Allowance and disallowance of wills (Arts.
838-839)
(a) Probate requirement (Art. 838)
(b) Grounds for denying probate (Art. 839)
=================================
II. TESTAMENTARY SUCCESSION
Inheritance
A. WILLS
CONCEPT OF A WILL (Art. 783)
1.
It is an act;
2.
3.
4.
5.
6.
=================================
TOPICS UNDER THE SYLLABUS
II. Testamentary Succession
A. Wills
KINDS OF WILLS:
1.
2.
6.
7.
8.
9.
CHARACTERISTICS OF A WILL:
1.
2.
ii.
iii.
b.
ii.
3.
4.
5.
11. STATUTORY
2.
3.
II.
4.
1.
2.
FORMS OF WILL
NOTE: This rule applies only to legacies and devisees and
not to institution of heirs
COMMON FORMALITIES:
1.
2.
SPECIAL FORMALITIES:
1.
I.
2.
3.
a.
b.
c.
A.
B.
C.
b.
c.
E.
ATTESTATION v. SUBSCRIPTION
Attestation An act of witnessing execution of will by
testator in order to see and take note mentally those things
are done which the statute requires for the execution of a
will and that the signature of the testator exists as a fact
Subscription manual act of instrumental witnesses in
affixing their signature to the instrument
ATTESTATION
SUBSCRIPTION
2. mental act
2. mechanical act
3. Purpose is to render
available proof during the
probate that such will had
been executed in
accordance with the
formalities prescribed by
law
3. Purpose is for
identification
b.
2.
bad faith
forgery
fraud
undue and
influence
improper
pressure
and
i.
ii.
II.
In the absence of
o
A.
B.
3.
4.
a.
ii.
1.
2.
3.
4.
2.
3.
4.
B.
C.
D.
C.
Of sound mind
B.
C.
D.
E.
F.
FORMAL VALIDITY
FORMAL
VALIDITY
FILIPINO
ALIEN
EXECUTED IN
PHILIPPINES
(a) CC of
Philippines
(a)CC of the
Philippines
AMENDMENT OF WILLS
1.
2.
(b)Law of His
Country
FOREIGN
COUNTRY
(a) CC of
Philippines
(a) CC of
Philippines
2.
A.
B.
C.
REVOCATION OF WILLS
1.
b.
preterition
c.
d.
substantial transformation
bequeathed
e.
SUBSTANTIVE VALIDITY
Order of succession
B.
Capacity to succeed
C.
D. Intrinsic validity
of
specific
thing
2.
b.
3.
REQUISITES:
LAWS WHICH GOVERN REVOCATION
a.
b.
IN PHILIPPINES
c.
Philippine Law
d.
e.
OUTSIDE
PHILIPPINES
Philippine Law
Domicile
Philippine Law
Non
Domicile
LAW
REQUISITES:
a.
b.
It must be false
c.
d.
1.
2.
3.
a.
b.
c.
d.
b.
Previously revoked
2.
II.
REPUBLICATION
REVIVAL
Corrects
extrinsic
extrinsic defects
and
1.
DISALLOWANCE OF
disallowance of a will:
WILL
grounds
1.
2.
3.
PROBATE OF A WILL
for
4.
5.
6.
Voluntary
testator
act
of
2.
3.
4.
5.
6.
DISALLOWANCE
the
2.
3.
2.
3.
1.
2.
b.
b.
b.
2.
3.
c.
EFFECTS OF PRETERITION:
RULES ON INSTITUTION OF ALIQUOT SHARE LESS THAN OR
IN EXCESS OF THE WHOLE ESTATE:
1.
1.
2.
3.
Intestacy Results if
a.
b.
a.
b.
c.
3.
PRETERITION
ELEMENTS OF PRETERITION
1.
2.
3.
4.
5.
b.
Deprivation
of
compulsory heir of
legitime is tacit
a
his
Deprivation
of
the
compulsory of his legitime is
express
Always voluntary
If disinheritance is unlawful,
compulsory heir is merely
restored to his legitime
C. SUBSTITUTION OF HEIRS
CLASSES OF SUBSTITUTION
1.
DISINHERITANCE
b.
2.
3.
4.
2.
3.
The fiduciary or first heir and the second heir are living
and qualified to succeed at the time of the death of the
testator
4.
5.
2.
3.
4.
Disposicion
Captatoria/Scriptura
Captatoria
5.
6.
7.
8.
9.
INTERPRETATION
Constructive Compliance
a.
b.
if mixed
i. If dependent partly on chance not applicable
POTESTATIVE
2.
2.
condition is fulfilled
2.
3.
2.
3.
CASUAL OR MIXED
Positive
b.
1.
E. LEGITIMES
ii.
The heirs for whom the law reserves such portion are
called compulsory heirs.
ascendants
1.
Surviving spouse
Illegitimate children
descendant
2.
3.
Surviving spouse
1.
NOTE:
a. Mere estrangement is not a ground for the
disqualification of the surviving spouse as heir
b. Effect of decree of legal separation:
i. On the offending spouse disqualified
ii. On the innocent spouse no effect
c. Death of either spouse during the pendency of a
petition for legal separation dismissal of the case
Illegitimate children and descendants (legitimate
or illegitimate)
Testator is a Legitimate
Person
Legitimate children
descendant
and
Testator is an Illegitimate
Person
2.
3.
b.
Rule of proximity
c.
b.
Non-impairment of legitime
a.
EXCEPTIONS:
a.
b.
Legitimate children
descendants
and
1.
Illegitimate
ascendants
and
2.
parents
3.
4.
7.
b.
c.
5.
6.
8.
HEIR
LEGITIME
FREE PORTION
1/2
1/2
1/2
1/2
CHILDREN 1/2
1/4
SPOUSE -1/4
LEGITIMATE CHILDREN (LC) & SPOUSE
CHILDREN 1/2
SPOUSE EQUAL TO SHARE OF 1 (ONE)
WHAT REMAINS
LC
LEGITIMATE CHILDREN (LC) & ILLEGITIMATE CHILDREN
LC -1/2
(ILC)
ILC 1/2 OF SHARE OF 1 (ONE) LC
LEGITIMATE PARENTS/ASCENDANT & SURVIVING
SPOUSE
SPOUSE 1/4
LEGIMITATE PARENTS/ASCENDANTS & ILLEGIMTATE
LEGITIMATE PARENTS/ASCENDANTS
CHILDREN
1/2
1/4
1/4
ILLEGIMITATE CHILDREN 1/4
ILLEGITIMATE CHILDREN & SURVIVING SPOUSE
ILC 1/3
1/3
SPOUSE 1/3
LEGIMIATE CHILDREN/DESCENDANTS, SURVIVING
SPOUSE & ILLEGITIMATE CHILDREN
LC 1/2
WHATEVER REMAINS
1/8 ESTATE
ILC 1/4
SURVIVING SPOUSE
GENERALLY
1/2
1/2
ARTICULO MORTIS
1/3
2/3
1/2
1/2
ILLEGITIMATE PARENTS
1/2
1/2
1/2
SPOUSE 1/4
RESERVA TRONCAL
RESERVA TRONCAL: The reservation by virtue of which an
ascendant who inherits from his descendant any property
which the latter may have acquired by gratuitous title from
another ascendant or a brother or sister, is obliged to
reserve the property for the benefit of relative within the 3rd
degree and who belong from the same line from which the
property came from.
It constitutes as an exception to both the system of
legitime and the order of intestate succession.
NOTE: The Civil Code did not provide for the rules on
how the reservatarios would succeed to the reservista.
However, the following rules on intestacy have been
consistently applied:
a. Rule of preference between the lines
b. Rule of proximity
c. Right of representation provided that the
representative is a relative within the 3rd degree,
and that he belongs to the line from which the
reservable property came
d. full blood/double share rule in Article 1006
PERSONAL ELEMENTS
1. ORIGINATOR the ascendant, brother or sister from
whom the propositus had acquired the property by
gratuitous title
2.
OBLIGATIONS
OF
A
RESERVISTA
AND
THE
CORRESPONDING RIGHTS OF THE RESERVATARIOS (A-I-SA)
1. To inventory reserved properties
2. To annotate the reservable character (if registered
immovables) in the Registry of Property within 90 days
from acceptance by the reservista
3. To appraise the movables
4. To secure by means of mortgage:
1. The indemnity for any deterioration of or damage to
the property occasioned by the reservistas fault or
negligence, and
2. The payment of the value of such reserved
movables as may be alienated by the reservista
onerously and gratuitously
3. As restitution for movables not alienated
RIGHT OF THE RESERVISTA OVER THE RESERVABLE
PROPERTY
1. The right of the reservista over the reserved property is
one of ownership
2. The ownership is subject to a resolutory condition
3. The right of ownership is alienable
4. The right of ownership is registrable
RIGHT OF THE RESERVASTARIOS OVER THE RESERVABLE
PROPERTY
1. The reservatarios have a right of expectancy over the
property
2. The right is subject to a suspensive condition
3. The right is alienable, but subject to the same
suspensive condition
4. The right is registrable
PROPERTY SUBJECT TO RESERVATION:
GENERAL RULE: It must be the same property which the
reservista had acquired by operation of law from the
propositus upon the latters death and which the latter, in
turn had acquired by gratuitous title during his lifetime from
another ascendant, brother or sister.
EXCEPTION: Substitution of the reservable property through
unavoidable necessity:
1. Property is consumable
2. Lost or destroyed through the fault of the reservista
3. Deteriorated through the same cause
4. It has been alienated
Reserva Maxima
Much of the potentially
reservable property as
possible must be deemed
included in the part that
passes by operation of law
Reserva Minima
Every single property in the
Prepositus estate must be
deemed to pass, partly by
will and partly by operation
of law, in the same
proportion that the part
given by will bears to the
part not so given
Minima
finds
wider
acceptance here
2.
i.
ii.
7.
3.
4.
5.
6.
7.
EFFECTS OF DISINHERITANCE
1. Total exclusion of the compulsory heir in from the
inheritance, which includes his legitime, his intestate
portion, and any testamentary disposition made in a
prior will.
2.
3.
e.
3.
4.
3.
a.
b.
Abandonment by parents
a. Willfully left the children to fend for themselves
b. Abdication of parental duties.
c. Only refers to abandoned child.
d. Induced daughters to lead a disgraceful life also
applicable to sons.
2.
Parent v. parent
Even if parents are not married, it is still a ground.
No need for conviction. As long as the heir can
prove that there is an attempt.
They do not need to be spouses. However, the
testator must be a common child.
GROUND
CHILD/
PARENT/
DESCEND
ASCEND
SPOUSE
N/A
N/A
testator,
spouse,
ascendant,
descendant
Accusation of a crime with penalty of
six years
Induce testator to make/change the
will.
1.Maltreatment
of
1.
testator
2.
Leading
disgraceful life
3.
Commission
2.
Abandonment
parents
Separation
2. Support
one
of
by
parent
against
another parent.
crime which carries
with it the penalty of
civil interdiction
of
PRETERITION
The person omitted must
be a compulsory heir in the
direct line
IMPLIED
EITHER
intentional
or
unintentional
Effect: total annulment of
institution of heirs
REVOCATION OF DISINHERITANCE
1. Reconciliation
NOTE: This refers to the resumption of genuine cordial
relationship between the testator and the disinherited
heir, approximating that which prevailed before the
testator learned of the cause for disinheritance,
reciprocally manifested by their actions subsequent to
the act of disinheritance.
2. Subsequent institution of the disinherited heir
3. Nullity of the will which contains the disinheritance
NOTES:
Even if validly disinherited, heir can still be validly
restored in the legitime by RECONCILIATION.
A subsequent reconciliation between the offender and
the offended person deprives the latter of the right to
disinherit and renders ineffectual any disinheritance
that may have been made. (Art. 922)
Reconciliation when in speaking terms again, no
particular form required, it may be express or tacit.
Compulsory heir;
Voluntary heir;
Legatee or devisee;
Estate.
2.
3.
4.
5.
6.
7.
1.
He may convey more than what he owns - the state should try to
acquire the part or interest owned by other parties. If other parties are
unwilling to alienate, the estate should give the legatee/devisee the
monetary equivalent (analogy with Article 931)
2.
General Rule:
1. If testator ordered acquisition of the thing - the order should be
complied with. If the owner is unwilling to part with the thing, the
legatee/devisee should be given the monetary equivalent
2.
If testator erroneously believed that the thing belonged to him legacy/device is void
Exception: if testator acquire the thing onerously or gratuitously after
making of the disposition, disposition is validated
3.
If testator knew that the thing did not belong to him but did not order
its acquisition - code is silent but disposition should be considered valid
- there is an implied order to acquire and doubts must be resolved in
favor of intestacy
1.
2.
If thing was owned by another person at time of making the will and
thereafter it is acquired by legatee/devisee:
a.
b.
3.
ii.
If thing was owned by testator at time will was made and L/D acquired
The encumbrance must be removed by paying the debt unless the testator
intended otherwise
=================================
TOPICS UNDER THE SYLLABUS
III. Legal or Intestate Succession (Arts. 960-1014)
A. General provisions (Arts. 960-969)
(1) Relationship (Arts. 963-969)
(2) Right of representation (Arts. 970-977)
B. Order of intestate succession (Arts. 978-1014,
992)
=================================
4.
a.
1.
b.
c.
2.
2.
d.
5.
6.
1.
2.
3.
4.
5.
6.
7.
2.
5.
6.
TESTAMENTARY
INTESTATE
When Takes Place
COMPULSORY HEIR:
LEGAL HEIR:
dies before the testator
is unworthy to succeed
is unworthy to succeed
is disinherited
Effects Upon The Division
Acquires the right with Acquires the right with
respect to the legitime
respect to the entire legal
portion
Per stirpes
Per stirpes
Predecease
Incapacity of Unworthiness
Disinheritance
2. Intestate succession
CHARACTERISTICS OF REPRESENTATION
1.
2.
3.
4.
A right of subrogation
Exception to the rule on proximity and equal
division
Called to succession by law
Representative succeeds the decedent and NOT
the person represented
OUTLINE OF RULES:
KIND OF HEIR
Predecease
Compulsory
Voluntary
Legal
Incapacity
Renunciation
Disinheritance
Transmits nothing;
Transmits nothing;
Transmits nothing;
Transmits nothing;
Representation
Representation
NO Representation
Representation
Transmits nothing;
Transmits nothing;
Transmits nothing;
Not applicable
NO Representation
NO Representation
NO Representation
Transmits nothing;
Transmits nothing;
Transmits nothing;
Representation
Representation
NO Representation
Not applicable
QUALIFICATIONS TO REPRESENT
1.
2.
2. Intestacy:
a.
b.
3.
OF
ILLEGITIMATE
OR
Division
All grandchildren
inherit per stirpes
Nephews and
inherit per capita
still
nieces
ADOPTED
Factual Situation
EFFECTS OF REPUDIATION
1.
Legitimate Children/Descendants
2.
Illegitimate Children/Descendants
3.
4.
Illegitimate Parents
5.
Surviving Spouse
5.
6.
7.
State
Legitimate Children/Descendants
2.
Illegitimate Children/Descendants
3.
Illegitimate Parents
4.
Surviving Spouse
5.
6.
State
EXCLUDES
CONCURS WITH
EXCLUDED BY
Ascendants,
collaterals and
state
No one
Illegitimate
parents,
collaterals and
state
No one
Collaterals and
state
Legitimate
children
Illegitimate children
and surviving spouse
Illegitimate parents
Collaterals and
state
Legitimate
children and
illegitimate
children
Surviving spouse
Surviving spouse
Collaterals
other than
siblings,
nephews and
nieces
No one
Legitimate children
All other
collaterals and
state
Legitimate
children,
illegitimate
children,
Surviving spouse
Illegitimate children
Surviving spouse
Legitimate children
and legitimate parents
Illegitimate children
Legitimate parents and
Illegitimate parents
Surviving spouse
Legitimate
parents and
illegitimate
parents
Other collaterals within 5th
degree
Collateral
remoter in
degree and
state
Legitimate
children
Illegitimate
children
Legitimate
parents
Illegitimate
parents and
Surviving
spouse
State
No one
Everyone
No one
LEGITIME
FREE PORTION
TOTAL
(1/2)
(1/2)
100%
(1/2)
(1/2)
100%
1 (ONE) LEGITIMATE
CHILDREN/DESCENDANT & SURVIVING
SPOUSE
CHILDREN 1/2
CHILDREN 1/2
SPOUSE -1/4
CHILDREN 1/2
SPOUSE -1/4
SPOUSE - 1/2
ENTIRE ESTATE IS
DIVIDED EQUALLY
BETWEEN TOTAL
NUMBER OF
CHILDREN &
SPOUSE
SPOUSE EQUAL TO
SHARE OF 1 (ONE) LC
LC -1/2
LEGITIMATE
PARENTS/ASCENDANT
1/2
SPOUSE 1/4
WHOLE ESTATE
DIVIDED BY THE
RATIO OF 2:1 FOR
EACH LEGITIMATE
CHILD AS
COMPARED TO THE
ILLEGITIMATE
CHILD
PARENT 1/2
SPOUSE -1/4
SPOUSE - 1/2
LEGITIMATE
PARENTS/ASCENDANTS
1/2
PARENTS - 1/2
ILLEGIMITATE
CHILDREN 1/4
ILC - 1/2
ILC 1/3
ILC - 1/6
ILC - 1/2
SPOUSE
SPOUSE 1/3
LEGIMIATE CHILDREN/DESCENDANTS,
SURVIVING SPOUSE & ILLEGITIMATE
CHILDREN
SPOUSE - 1/6
SPOUSE - 1/2
WHOLE ESTATE
DIVIDED BY THE
RATIO OF 2:1 FOR
EACH LEGITIMATE
CHILD AS
COMPARED TO THE
ILLEGITIMATE
CHILD
LC 1/2
SPOUSE EQUAL TO 1
(ONE) LC
ILC 1/2 OF SHARE OF
ONE (1) LC
LEGITIMATE PARENTS/ASCENDANTS,
SURVIVING SPOUSE, & ILLEGITIMATE
CHILDREN
LEGIMIATE
PARENTS/ASCENDANTS
1/2
LEGITIMATE
PARENTS - 1/2
SPOUSE - 1/4 ILC
- 1/4
SPOUSE 1/8
SPOUSE - 1/8
ILC 1/4
SURVIVING SPOUSE
GENERALLY
(1/2)
(1/2)
100%
ARTICULO
MORTIS
(1/3)
(2/3)
100%
(1/2)
(1/2)
100%
ILLEGITIMATE PARENTS
(1/2)
(1/2)
100%
ILLEGITIMATE PARENTS
1/4
ILLEGIMITATE
PARENTS - 1/2
SPOUSE - 1/2
SPOUSE 1/4
SIBLINGS, NEPHEWS & NIECE
(1/2)
(1/2)
100%
SPOUSE 1/2
NEPHEWS/SIBLINGS
1/2
SPOUSE (1/2)
NEPHEWS/SIBLINGS (1/2)
=================================
TOPICS UNDER THE SYLLABUS
IV. Provisions Common to Testate and Intestate
Succession (Arts. 1015-1105)
A. Right of accretion (Arts. 1015-1023)
(1) Definition and requisites (Arts. 1015-1016)
B. Capacity to succeed by will or intestacy (Arts.
1024-1040)
(1) Persons incapable of succeeding (Arts.
1027, 739, 1032)
(2) Unworthiness vs. Disinheritance
C. Acceptance and repudiation of the inheritance
(Arts. 1041-1057)
D. Collation (Arts. 908-910, 1061-1062)
E. Partition and distribution of estate (Arts.
1078-1105)
(1) Partition (Arts. 1079, 1080)
(2) Partition inter vivos
(3) Effects of partition (Arts. 1091, 1097, 1100,
1104-1105)
=================================
IV. PROVISIONS COMMON TO TESTATE AND
INTESTATE SUCCESSION
In Testamentary Succession
Predecease
Incapacity
Repudiation
Non-fulfillment of suspensive condition imposed
upon instituted heir
e. Ineffective testamentary disposition
a.
b.
c.
d.
2.
In Intestate Succession
a. Predecease of a legal heir (only
representation does not apply)
b. Incapacity of legal heir (only
representation does not apply)
c. Repudiation by a legal heir
when
when
2.
3.
4.
SUMMARY:
I. In testamentary succession:
1. Legitime:
In case of predecease of an heir, there is
representation if there are children or
descendants; if none, the others inherit in
their own rights.
In case of incapacity, results are the same as
in predecease.
In case of disinheritance, results are the same
as in predecease.
In case of repudiation by an heir, the others
inherit in their own rights.
2. Disposable free portion:
Accretion takes place when requisites are
present, but if such requisites are not present,
the others inherit in their own right.
II. In intestate succession:
In case of predecease, there is representation if
there are children or descendants; if none, the
others inherit in their own rights.
In case of incapacity, results are the same as in
predecease.
In case of repudiation, there is always accretion.
CAPACITY TO SUCCEED
The following are capable of succeeding:
1. Natural Persons
a. General Rule must be (1) living when succession
opens, and (2) not incapacitated or disqualified by
law to succeed.
NOTE: It is enough that the heir, devisee or legatee
be already conceived in accordance with Arts 40
and 41, to be considered living.
b. If institution subject to a suspensive condition
successor must be living both when decedent dies
and when the condition happens
c.
2.
Juridical Persons
Organizations or associations which possess
juridical personality
b.
c.
d.
e.
f.
2.
c.
RELATIVE INCAPACITY
Those Prohibited under Art 1027 due to Undue
Influence or Interest
Priest who heard the confession of the testator during
his last illness, or the minister of the gospel who
extended spiritual aid to him during the same period
Relatives of such priest or minister of the gospel within
the 4th degree, the church, order, chapter, community,
organization, or institution to which such priest or
minister may belong
Guardian with respect to testamentary dispositions
given by a ward in his favor before the final accounts of
the guardianship have been approved, even if the
testator should die after the approval thereof; EXCEPT
if the guardian is his ascendant, descendant, brother,
sister, or spouse
Attesting witness to execution of will, their spouses,
parents, children or any one claiming under such
witness, spouse, parents or children
Physician, surgeon, nurse, health officer or druggist
who took care of the testator during his last illness
Individuals, associations, and corporations not
permitted by law to inherit
NOTE: Possible only in testamentary succession.
Therefore, if the one incapacitated is a compulsory heir,
it does not affect the legitime but only the free portion.
Those prohibited under Art 739 from giving and
receiving donation from each other based on Morality
or Public Policy
a. Those made between persons who were guilty of
adultery or concubinage at the time of the
donation;
b. Those made between persons found guilty of the
same criminal offense, in consideration thereof;
EXPRESS
Made by the execution of a
document or any writing in
which the descendent
condones the cause of
incapacity
Cannot be revoked
IMPLIED
Effected when testator
makes a will instituting the
unworthy heir with
knowledge of the cause of
incapacity
Revoked when the testator
revokes the will or the
institution
CHARACTERISTICS OF REPUDIATION
1. Free and Voluntary Act
2. Irrevocable once made and cannot be impugned, except
in cases vitiating consent.
3. Retroactive
REQUISITES FOR A VALID REPUDIATION
Heir repudiating must be certain of two things before
repudiating:
a. Death of the person from whom he is to inherit;
b. Right to the inheritance.
c.
2.
2.
3.
4.
NOTE:
PROHIBITION TO PARTITION
1. The prohibition to partition for a period not exceeding
20 years can be imposed on the legitime.
2. If the prohibition to partition is for more than 20 years,
the excess is void.
3. Even if a prohibition is imposed, the heirs by mutual
agreement can still make the partition.
LEGAL REDEMPTION IN FAVOR OF CO-HEIRS
The right of legal redemption predicated upon the fact
that the sale made by the co-heir is effected before the
partition of the estate but after the death of the
decedent.
Requisites:
1. There must be several co-heirs
2. That one of them sells his right to a stranger
3. That the sale is made before the partition
4. That the right of redemption must be exercised by
one or more of the co-heirs within 1 month from
the time they were notified in writing by the coheir vendor
5. The vendee is reimbursed for the price of the sale.
EFFECTS OF PARTITION
Confers upon each heir the exclusive ownership of the
property adjudicated.
END OF DISCUSSION
==========================================
III. LEASE
=================================
TOPIC UNDER THE SYLLABUS:
A. Lease of Things
B. Lease of Work or Services
C. Lease of Rural and Urban Lands
1. Qualified persons
2. Registration
3. Prohibitions
D. Contract for Piece of Work
E. Rights and Obligations of Lessor and Lessee
=================================
CONTRACT OF LEASE is a contract by which one person binds
himself to grant temporarily, the use of a thing or the
rendering of some service to another who undertakes to pay
some rent, compensation, or price
Characteristics Of Lease Of Things: (CLONS-PEP-TP)
1. Consensual
2. Lessor need not be the owner
3. Onerous
4. Nominate
5. Subject matter must be within the commerce of man
(i.e. not belonging to public domain)
6. Principal contract
7. Purpose is to allow Enjoyment or use of a thing
8. Purpose to which the thing will be devoted should not
be immoral
9. Period is Temporary
10. Period may be definite or indefinite
NOTE: Persons disqualified to buy under Arts. 1490 and 1491
of the Civil Code are also disqualified to become lessees of
the things mentioned therein. (Art. 1646, NCC)
Kinds Of Lease
1. Lease of things (whether immovable or movable
property)
One of the parties binds himself to give to another
the enjoyment or use of a thing
For a price certain and
For a period which may be definite or indefinite
NOTE: However, no lease for more than 99 years shall be
valid.
General Rule: The contract of lease may be made orally
Exception: Lease of real property for more than 1 year (must
be in writing to comply with Statute of Frauds)
2.
Lease of service
One party binds himself to render to the other
some service
For a price certain
CONTRACT FOR A
PIECE OF WORK
(Locatio Operis)
The object of
contract is the
result of the work
without
considering the
labor that
produced it
If the result
promised is not
accomplished,
the lessor is not
entitled to
compensation
CONTRACT OF
LEASE OF
SERVICE (Locatio
Operarum)
The object of
contract is the
service itself and
not the result
which it
generates
Even if the result
intended is not
attained, the
services of the
lessor must still
be paid.
In case of breach,
no action for
specific
performance
CONTRACT OF
LEASE OF
THING
The object of
contract is a
thing
Lessor has to
deliver the
thing leased.
In case of
breach, there
can be an
action for
specific
performance
6.
Owner has the right to fix the rent because the contract
is consensual and not imposed by law.
Increasing the rent is NOT an absolute right of the
lessor.
If the rent is fixed for the first time, courts cannot
interfere, but if it is a renewal, the courts can settle the
disagreements.
There being no agreement on the reasonable
compensation that a lessee must pay for its continuing
use and occupation of the premises after the
termination of the lease, it was proper for the lower
courts to determine the same. MATERCCO v. First
Landlink Asia Development Corporation, [G.R. No.
175678 (2007)]
In lease of rural lands, lessee has no right to a reduction
of the rent on account of the sterility of land leased, or
by reason of the loss of fruits due to ordinary fortuitous
events, except when the loss more than of the fruits is
through extraordinary and unforeseen fortuitous events
unless there be stipulation to the contrary.
definite period
It may be created by
contract as a general rule
Lessee has no duty to
make repairs
Lessee has no duty to pay
taxes
Lessee cannot constitute a
usufruct of the property
leased
indefinite period
It may be created by law,
contract,
last
will
or
prescription
Usufructuary has duty to
make repairs
Usufructuary has a duty to
pay taxes
Usufructuary may constitute
a sublease
Duration Of Lease
1. Lease may be for a determinate time or fixed period
2.
distinct juridical
relationship (lessor-lessee
and sublessor-sublessee)
Sublessee does not have
any direct action against
the lessor
Subleasing is allowed
unless there is an express
prohibition
1.
2.
3.
IV. PARTNERSHIP
=================================
TOPICS UNDER THE SYLLABUS
A. CONTRACT OF PARTNERSHIP
B. RIGHTS AND OBLIGATIONS OF PARTNERSHIP
C. RIGHTS AND OBLIGATIONS OF PARTNERS
AMONG THEMSELVES
D. OBLIGATIONS OF PARTNERSHIP/PARTNERSHIP
TO THIRD PERSONS
E. DISSOLUTION
F. LIMITED PARTNERSHIP
=================================
CHAPTER 1: GENERAL PROVISIONS
A. CONTRACT OF PARTNERSHIP
c.
CHARACTERISTICS:
1. Essentially contractual in nature (Art. 1767, 1784)
2. Separate juridical personality (Art. 1768)
3. Delectus personae
4. Mutual Agency (Art. 1803)
5. Personal liability of partners for partnership debts
3. RULES TO DETERMINE EXISTENCE
GENERAL RULE: Persons who are NOT partners as between
themselves, CANNOT be partners as to third persons. (Art.
1769(1))
EXCEPTION: Partnership by Estoppel under Art. 1825
1. DEFINITION
PARTNERSHIP - a contract wherein two or more persons bind
themselves to contribute money, property, or industry to a
common fund, with the intention of dividing the profits
among themselves.
2. ELEMENTS
ELEMENTS OF A PARTNERSHIP:
There shall be a partnership whenever:
1. There is a meeting of the minds;
2. To form a common fund;
3. With intention that profits (and losses) will be divided
among the contracting parties.
ESSENTIAL FEATURES:
1. There must be a VALID CONTRACT.
2. The parties must have legal capacity to enter into the
contract.
3. There must be a mutual contribution of money,
property, or industry to a common fund.
4. There must be a lawful OBJECT.
5. The purpose or primary purpose must be to obtain
profits and divide the same among the parties.
ADDITIONAL REQUIREMENT FOR JURICICAL PERSONALITY
a. It is also required that the articles of partnership must
NOT be kept SECRET among the members; otherwise,
the association shall have no legal personality and shall
be governed by the provisions on CO-OWNERSHIP (Art.
1775).
b. "kept secret among the members" - secrecy directed
not to third persons but to some of the partners
3.
4.
No existing partnership
& all those represented
consented;
Not all partners of
existing partnership
consents to
representation
No existing partnership
& not all represented
consented;
None of partners in
existing partnership
consented
b.
Person who represented himself
liable & those who
made/consented to
representation separately liable
a.
c.
d.
10. MANAGEMENT
See Rights and Obligations of Partners Among Themselves
B. RIGHTS AND OBLIGATIONS OF PARTNERSHIP
General Rule A partnership begins from the moment of the
execution of the contract, unless it is otherwise stipulated.
Exception
1. Where immovable property/real rights are contributed
(Art. 1771)
Public instrument is necessary
Inventory of the property contributed must be
made, signed by the parties and attached to the
public instrument otherwise it is VOID
2. When the contract falls under the coverage of the
Statute of Frauds (Art. 1409)
3. Where capital is P3,000 or more, in money or property
(Art. 1772)
Public instrument is necessary
Must be registered with SEC
But failure to comply shall not affect the liability of the
partnership and the members thereof to third persons
A void partnership under Article 1773, in relation to Article
1771, may still be considered a partnership de facto or by
estoppel vis--vis third persons; and may be considered by
the courts as an ordinary contract (though not exactly an
Art. 1767 partnership) from which rights and obligations
may legally stem. Torres v. CA, 320 SCRA 428 (1999)
SEC Opinion, 1 June 1960: For purposes of convenience in
dealing with government offices and financial institutions,
registration of partnership having a capital of less than Php
3,000 is recommended.
MUTUAL AGENCY
(According to Dean Villanueva)
Unless otherwise stated, all partners are considered agents
and whatever any one of them may do alone shall bind the
partnership (Arts. 1803(1), 1818)
Partners can dispose of partnership property even when in
partnership name (Art. 1819)
PARTNERSHIP
Creation
Created by a
contract, by
mere
agreement of
the parties
Has a juridical
personality
separate and
distinct from
that of each
partner
Juridical
personality
Purpose
Realization of
profits
Duration/
Term of
existence
No limitation
CO-OWNER
SHIP
Created by
law
None
Common
enjoyment
of a thing or
right
10 years
maximum
Disposal/
Transferabil
ity of
interest
Partner may
not dispose of
his individual
interest unless
agreed upon
by all partners
Co-owner
may freely
do so
Power to
act with 3rd
persons
In absence of
stipulation to
contrary, a
partner may
bind
partnership
(each partner
is agent of
partnership)
Co-owner
cannot
represent
the coownership
Effect of
death
Death of
partner
results in
dissolution of
partnership
Dissolution
May be
dissolved at
any time by
the will of any
or all of the
partners
# of
incorporato
rs
Commence
ment of
juridical
personality
Minimum of 2
persons
CORP
Created by
law
Has a
juridical
personality
separate and
distinct from
that of each
stockholder
Depends on
AOI
50 years
maximum,
extendible to
not more
than 50 years
in any one
instance
Stockholder
has a right to
transfer
shares
without prior
consent of
other
stockholders
Management
is vested with
the Board of
Directors
From the
moment of
execution of
contract of
partnership
Death of
stockholder
does not
dissolve
corporation
Can only be
dissolved
with the
consent of
the state
Minimum of
5
incorporators
From date of
issuance of
certificate of
incorporation
by the SEC
Bautista, E.
De Leon
As to legality of existence
No public Instrument,
No Inventory
VOID
VOID
VOID
VOID
As to purpose
COMMERCIAL OR TRADING PARTNERSHIPone formed
for the transaction of business
PROFESSIONAL OR NON TRADING PARTNERSHIPone
formed for the exercise of a profession
VALID
No Public Instrument,
With Inventory
KINDS OF PARTNERS
VOID
VALID
PROMISED CONTRIBUTION
Obligations with respect to contribution of property:
1. to contribute at the beginning of the partnership or at
the stipulated time the money, property or industry
which he may have promised to contribute (Art. 1786)
To answer for eviction in case the partnership is
deprived of the determinate property contributed (Art.
1786)
2. To answer to the partnership for the fruits of the
property the contribution of which he delayed, from the
date they should have been contributed up to the time
of actual delivery (Art. 1786)
3. To preserve said property with the diligence of a good
father of a family pending delivery to partnership (Art.
1163)
4. To indemnify partnership for any damage caused to it by
the retention of the same or by the delay in its
contribution (Arts. 1788, 1170)
Effect of failure to contribute property promised:
Partners becomes ipso jure a debtor of the partnership even
in the absence of any demand (See Art. 1169[1])
Remedy of the other partner is not rescission but specific
performance with damages from defaulting partner (Art.
1788)
Obligations with respect to contribution of money and
money converted to personal use:
1. To contribute on the date fixed the amount he has
undertaken to contribute to the partnership
2. To reimburse any amount he may have taken from the
partnership coffers and converted to his own use
3. To pay for the agreed or legal interest, if he fails to pay
his contribution on time or in case he takes any amount
from the common fund and converts it to his own use
4. To indemnify the partnership for the damages caused to
it by delay in the contribution or conversion of any sum
for his personal benefits
(See Art. 1788)
FIDUCIARY DUTY
CAPITALIST PARTNER
- cannot engage in
business (with same kind
of business with the
partnership) for his own
account, unless there is
a stipulation to the
contrary.
( Art. 1808)
Risk is borne by
partner
Risk is borne by
partnership
Risk is borne
partnership
Risk is borne
partnership
Risk is borne
partnership
Risk is borne
partner
by
by
by
by
Power of
managing
partner is
irrevocable
without
just/lawful
Vote of partners
representing
controlling
interest
necessary to
revoke power
Partner is appointed
manager after
constitution of
partnership
2 or more persons
entrusted with
management of
partnership without
specification of
duties/stipulation
that each shall not
act w/o the other's
consent
cause; Revocable
only when in bad
faith
Power is
revocable any
time for any
cause
Each may
execute all acts
of administration
Concurrence of
all necessary for
the validity of
acts
Manner of
management not
agreed upon
In case of
opposition,
decision of
majority shall
prevail; In case
of tie, decision
of partners
owning
controlling
interest shall
prevail
Absence or
disability of any
one cannot be
alleged unless
there is
imminent
danger of grave
or irreparable
injury to
partnership
If refusal of
partner is
manifestly
prejudicial to
interest of
partnership,
court's
intervention
may be sought
the
business
or
1) EFFECTS OF DISSOLUTION
AUTHORITY OF PARTNER TO BIND PARTNERSHIP
GENERAL RULE: Authority of partners to bind partnership is
terminated
EXCEPTIONS
1. To wind up partnership affairs
2. Complete transactions not finished
Qualifications:
With respect to partners
Authority of partners to bind partnership by new contract is
immediately terminated when dissolution is not due to ACT,
DEATH or INSOLVENCY (ADI) of a partner (art 1833);
If due to ADI, partners are liable as if partnership not
dissolved, when the ff. concur:
If cause is ACT of partner, acting partner
must have knowledge of such dissolution
If cause is DEATH or INSOLVENCY, acting
partner must have knowledge/ notice
With respect to persons not partners (Art. 1834)
Partner continues to bind partnership even after dissolution
in ff. cases:
Transactions in connection to winding up partnership
affairs/completing transactions unfinished
Transactions which would bind partnership if not dissolved,
when the other party/obligee:
Situation 1 Had extended credit to partnership prior to dissolution &
Had no knowledge/notice of dissolution, or
Situation 2 i. Did not extend credit to partnership
Had known partnership prior to dissolution
Had no knowledge/notice of dissolution/fact of dissolution
not advertised in a newspaper of general circulation in the
place where partnership is regularly carried on
Partner cannot bind the partnership anymore after
dissolution:
Where dissolution is due to unlawfulness to carry on with
business (except: winding up of partnership affairs)
Where partner has become insolvent
Where partner unauthorized to wind up partnership affairs,
except by transaction with one who:
3.
resources. It can only pay out what it has for its total
assets. But this is subject to the priority enjoyed by
outside creditors. After all the (said) creditors have
been paid, whatever is left of the partnership assets
becomes available for the payment of partners shares.
Villareal v. Ramirez, 406 SCRA 145
F. LIMITED PARTNERSHIP
Characteristics:
1. Formed by compliance with statutory requirements
2. One or more general partners control the business
3. One or more general partners contribute to the capital
and share in the profits but do not participate in the
management of the business and are not personally
liable for partnership obligations beyond their capital
contributions
4. May ask for the return of their capital contributions
under conditions prescribed by law
5. Partnership debts are paid out of common fund and the
individual properties of general partners
LIMITED
Liability extends only to
his capital contributions
No participation in
management
Contribute cash or
property only, not
industry
Not proper party to
proceedings by/against
partnership
Interest is freely
assignable
Name must appear in
firm name
No prohibition against
engaging in business
Does not have same
effect; rights transferred
to legal representative
1.
2.
3.
4.
5.
6.
7.
8.
5.
6.
7.
V. AGENCY
=================================
TOPICS UNDER THE SYLLABUS
A. DEFINITION OF AGENCY
B. POWERS (ARTS. 1877-1878
C. EXPRESS V. IMPLIED AGENCY
D. AGENCY BY ESTOPPEL
E. GENERAL VS. SPECIAL AGENCY
F. AGENCY COUCHED IN GENERAL TERMS
G. AGENCY REQUIRING SPECIAL POWER OF
ATTORNEY
H. AGENCY BY OPERATION OF LAW
I. RIGHTS AND OBLIGATIONS OF PRINCIPAL
J. MODES OF EXTINGUISHMENT
=================================
A. DEFINITION OF AGENCY
CONTRACT OF AGENCY is a contract whereby a person binds
himself to render some service or to do something in
representation or on behalf of another, with the consent or
authority of the latter.
Characteristics:
Consensual: perfected by mere consent;
Nominate: it has its own name;
Preparatory: entered into as means to enter into other
contracts
Principal: does not depend on another contract for its
existence and validity;
Unilateral/Bilaterial:
Unilateral: if contract is gratuitous or it creates obligations
for only one party (i.e. the agent)
Bilateral: if contract is for compensation or gives rise to
reciprocal rights and obligations
Nature: Since it is a contract, there must be a meeting of the
minds as to consent, object, and cause.
Exception to contractual nature:
When the agency is created by operation of law
Ex: Agency by Estoppel
Basis: Representation
The acts of the agent on behalf of the principal within the
scope of his authority produce the same legal and binding
effects as if they were personally done by the principal.
Hence, the distinguishing features of agency are its
representative character & its derivative authority.
Agent
Insofar as third persons are concerned, it is enough that the
principal is capacitated.
Insofar as his obligations to his principal are concerned, the
agent must be able to bind himself.
As an agent, some mental capacity is necessary, therefore,
those who are absolutely incapacitated (ex. Insane persons)
cannot be agents.
ESSENTIAL ELEMENTS
Consent of the parties to establish the relationship;
Object of the contract is the execution of a juridical act in
relation to third persons;
Agent acts as a representative and not for himself; and
Agent acts within the scope of his authority.
An illegal termination of agency does not justify
reinstatement of the agent as such. The agency cannot be
compelled by the courts to be reinstated because such
relationship can only be given effect with the consent of the
principal. Orient Air Services v. CA, G.R. No. 76931, May 29,
1991
Acts That Cannot Be Done By Agent:
Personal Acts ex. making of a will
Criminal or Illegal Acts
Nature of Relationship between Principal and Agent:
Fiduciary based on trust & confidence
Agent is estopped from asserting interest adverse to his
principals
Agent must not act as an adverse party
Agent must not act for an adverse party
Agent must not use or disclose secret information
Agent must give notice of material facts
GENERAL RULE: Knowledge of the agent is imputed to the
principal even though the agent never communicated it
to his principal
EXCEPTIONS:
Where the interests of the agent are adverse to those of the
principal;
Agent Acts in Bad Faith or Where the person claiming the
benefit of the rule colludes with the agent to defraud the
principal.
B. POWERS (ARTS. 1877-1878)
Special powers of attorney are necessary in the following
cases: (PECWAM-LLB-BOCARO)
To make such payments as are not usually considered as acts
of administration;
To effect novations which put an end to obligations already
in existence at the time the agency was constituted;
To compromise, to submit questions to arbitration, to
renounce the right to appeal from a judgment, to waive
objections to the venue of an action or to abandon a
prescription already acquired;
To waive any obligation gratuitously;
To enter into any contract by which the ownership of an
immovable is transmitted or acquired either gratuitously
or for a valuable consideration;
To make gifts, except customary ones for charity or those
made to employees in the business managed by the
agent;
To loan or borrow money, unless the latter act be urgent and
indispensable for the preservation of the things which
are under administration;
To lease any real property to another person for more than
one year;
To bind the principal to render some service without
compensation;
To bind the principal in a contract of partnership;
To obligate the principal as a guarantor or surety;
To create or convey real rights over immovable property;
To accept or repudiate an inheritance;
To ratify or recognize obligations contracted before the
agency;
Any other act of strict dominion.
A special power to sell excludes the power to mortgage;
and a special power to mortgage does not include the
power to sell.
of the sale
Agent can return the object
Buyer, as a general rule,
in case he is unable to sell
cannot return the object sold
the same to a third person
Agent in dealing with the
Buyer can deal with the thing
thing received is bound to
as he pleases, being the
act according to the
owner
instructions of his principal
Distinction between Agent & Contractor
AGENT
INDEPENDENT CONTRACTOR
Represents his principal
Employed by the employer
Acts under the principals
Acts according to his own
control and instruction
method
Principal is liable for torts
Employer not liable for torts
committed by the agent
committed by the independent
within the scope of his
contractor.
authority
Distinction between Agency and Partnership
AGENCY
PARTNERSHIP
An agent must submit to the A co-partner is not subject to
principals right to control
co-partners right to control,
unless there is an agreement
to that effect
The agent assumes no
The partner binds not only
personal liability where he
the firm members but
acts within the scope of his
himself as well
authority
The agent takes his agreed
The profits belong to all the
share of profits not as owner partners as common
but as an agreed measure of proprietors in agreed
compensation for his
proportions
services
C. EXPRESS VS. IMPLIED AGENCY
Express agent has been actually authorized by the
principal, either orally or in writing
Implied agency is implied from the acts of the principal,
from his silence, or lack of action, or his failure to
repudiate the agency knowing that another person is
acting on his behalf without authority, or from the
acts of the agent which carry out the agency,
OTHER CLASSIFICATIONS OF AGENCY
As to character
Gratuitous agent receives no compensation for his
services
Onerous agent receives compensation for his services
As to extent of business of the principal
General agency comprises all the business of the
principal
Special agency comprises one or more specific
transactions
As to authority conferred
Couched in general terms only acts of administration
Couched in specific terms only the performance of a
specific act/s
As to nature and effects
Ostensible or Representative agent acts in the name and
representation of the principal
Simple or Commission agent acts in his own name but
for the account of the principal.
Forms of Agency
GENERAL RULE: Appointment of an agent may be oral or
written; no formal requirements
EXCEPTION: When the law requires a specific form (ex.
agents sale of real property or any interest
therein)
Agency is presumed to be for compensation, unless
there is proof to the contrary.
The agent does not have to prove that the agency is for
compensation.
But the prima facie presumption that the agency is for a
compensation may be contradicted by contrary
evidence
Broker - negotiate contracts relative to property in behalf of
others and for a compensation/fee
When Broker Entitled to Compensation:
Whenever he brings to his principal a party who is able
and willing to take the property, and enter into a valid
contract upon the terms named by the principal,
although the particulars may be arranged and the
matter negotiated and completed between the principal
and the purchaser directly
However, a broker is never entitled to commission for
unsuccessful efforts.
The broker should be paid his commission where he is
the efficient procuring cause in bringing the sale.
Efficient procuring cause: when there is a close
proximate and causal connection between the efforts
and labor of the agent and the principals sale of
property. Manotoc Brothers v. CA, 221 SCRA 224 (1993)
LAW ON DOUBLE AGENCY
Disapproved by law for being against public policy and sound
morality EXCEPT where the agent acted with full
knowledge and consent of the principals
Right of agent to compensation in case of double agency:
With knowledge of both principals - recovery can be had
from both principals
Without the knowledge of both principals - the agent can
BASIS
Scope of
Authority
Nature of
Service
Authorized
Extent to
Which Agent
May Bind the
Principal
Termination
of Authority
Construction
of Principals
Instructions
GENERAL AGENCT
All acts connected
with the business or
employment in
which he is engaged
Involves continuity
of service
SPECIAL AGENT
Specific acts in
pursuance of
particular
instructions or with
restrictions
necessarily implied
from the act to be
done
No continuity of
service
Merely advisory in
nature
Strictly construed as
they limit the agents
authority
Answer for damages which through his nonperformance the principal may suffer
Finish the business already begun on the death of the
principal should delay entail any danger (exception to
the rule that death extinguishes agency)
Observe the diligence of a good father of a family in the
custody and preservation of the goods forwarded to
him by the owner in case he declines an agency, until
an agent is appointed
Advance necessary funds if there be a stipulation to do
so (except when the principal is insolvent)
Act in accordance with the instructions of the principal,
and in default thereof, to do all that a good father of a
family would do
Exceptions (to the rule that the agent must not depart
from the instructions of principal): (SAI)
Theres a sudden emergency
If the instructions are ambiguous
If the departure is so insubstantial that it does
not affect the result and the principal suffers no
damage thereby
Not to carry out the agency if it would manifestly result in
loss or damage to the principal
Answer for damages if there being a conflict between his &
his principals interests, he prefers his own
Not to loan to himself if he has been authorized to loan
money at interest
Render an account of his transactions and deliver to the
principal whatever he may have received by virtue of
the agency (If the agent fails to deliver and instead
converts or appropriates for his own use the money or
property belonging to his principal, he may be charged
with ESTAFA.)
Be responsible in certain cases for the act of the substitute
appointed by him
Pay interest on funds he has applied to his own use
Distinctions between Authority and the Principals
Instructions
AUTHORITY
INSTRUCTIONS
Sum total of the powers
Contemplates only a private
committed to the agent by
rule of guidance to the
the principal
agent; independent and
distinct in character
Relates to the
Refers to the manner or
subject/business with which
mode of agents action
the agent is empowered to
deal or act
Limitations of authority are
Without significance as
operative as against those
against those with neither
who have/charged with
knowledge nor notice of
knowledge of them
them
Contemplated to be made
Not expected to be made
Mismanagement of
the business by the
agent
Tort committed by
the agent
EFFECT
Binds principal;
Agent not personally liable
EXCEPTION(S)
Agent liable if he:
Expressly makes himself liable
Exceeds the limits of his authority without
giving the parties sufficient notice of his
powers
Binding on the principal when:
Ratified or
The principal allowed the agent to act as
though he had full powers
When the transaction involves things belonging
to the principal:
Remedy of the principal - damages for
agents failure to comply with the
agency
Remedies of the third person
If the case falls under the general rule, he
can sue the agent.
But when the contract involves things
belonging to the principal, he can
sue the principal.
But if it cannot be determined without
litigation who is liable, he can sue
both.
constituted.
By the death, civil interdiction, insanity or insolvency of the
principal or of the agent;
By the withdrawal of the agent;
By the accomplishment of the object or purpose of the
agency;
By its revocation;
By the dissolution of the firm or corporation which entrusted
or accepted the agency (Art. 1919)
The list not exclusive; causes particular only to agency; may
be extinguished by the modes of extinguishment of
obligations in general whenever they are applicable, like loss
of the thing and novation
Agency is TERMINATED, as a matter of law, upon the
outbreak of war.
Presumption of Continuance of Agency - when once shown
to have existed, an agency relation will be presumed to have
continued, in the absence of anything to show its
termination.
Continuance of Agency
Parties must be
Present,
Capacitated and
Solvent
Modes of extinguishing an agency, generally: (ASO)
Agreement
Subsequent acts of the parties which may be either:
By the act of both parties or by mutual consent
By the unilateral act of one of them
NOTE: Even if the reason for extinguishing the agency is not
true, the agent cannot insist on reinstatement. The agent
can only demand damages.
What happens if the subject matter of the agency is lost or
destroyed?
In the absence of any agreement by the parties to the
contrary, the loss or destruction of the subject matter of the
agency terminates the agents authority to deal with
reference to it
EXCEPTIONS:
If it is possible to substitute other material for that which was
destroyed without substantial detriment to either party
If the destroyed subject matter was not in fact essential to
the contract
A partial loss or destruction
Form of renunciation
It is not always necessary for the agent to renounce the
agency expressly. He can do so impliedly, such as:
Where he has conducted himself in a manner incompatible
with his duties as agent
When he abandons the object of his agency and acts for
himself in committing a fraud upon his principals
When he files a complaint against the principal and adopts
an antagonistic attitude towards him
Exceptions to Extinguishment by Death (CKID)
If the agency is coupled with an interest
If the act of the agent was executed without the knowledge
of the death of the principal and the third person who
contracted with the agent acted in good faith
To avoid damage
If it has been constituted in the common interest of the
principal and of the agent, or in the interest of a third
person who has accepted the stipulation in his favor
Can the heirs continue the agency?
GENERAL RULE: agency calls for personal services on the part
of the agent; rights & obligations are not transmissible
EXCEPTIONS:
Agency by operation of law, or a presumed or tacit agency
Agency is coupled with an interest in the subject matter of
the agency (ex. power of sale in a mortgage).
Exceptions to Extinguishment Upon Loss or Destruction of
Subject Matter
If it is possible to substitute other material for that which was
destroyed without substantial detriment to either party or if
the destroyed subject matter was not in fact essential to the
contract;
A partial loss or destruction does not always result in a
complete termination of the agency, and under such
circumstances, while the agency may be ended in so far as
the destroyed property is concerned, it may continue in
existence as to other property not affected
If the loss brought about by the principal (ex..
principal sells subject matter to another party even
if an agent has been constituted in reference to it),
principal liable for damages for his wrongful
terminating act; if subject matter is lost without
principals fault, no liability assumed by him
Change of Circumstance:
GENERAL RULE: when there is a basic change in the
circumstances surrounding the transaction, which was not
contemplated by the parties and which would reasonably
lead the agent to believe that the principal would not desire
him to act, the authority of the agent is terminated
EXCEPTIONS:
If the original circumstances are restored within a reasonable
period of time, the agent's authority may be revived
Where the agent has reasonable doubts as to whether the
principal would desire him to act, his authority will not
be terminated if he acts reasonably
Where the principal and agent are in close daily contact, the
agent's authority to act will not terminate upon a
change of circumstances if the agent knows the principal
is aware of the change and does not give him new
instructions
Revocation - termination of the agency by the subsequent
act of the principal
Renunciation/Withdrawal - termination of the agency by the
subsequent act of the agent
May the agency be extinguished at will?
AGENT may do so but subject to the contractual obligations
owing to the principal (i.e. fixed period of time for the
agency or purpose not yet accomplished);
Expressly or impliedly
conducted himself in a manner incompatible with his
duties;
abandons the object of agency and acts for himself in
committing a fraud upon his principal;
he files a complaint against the principal and adopts an
antagonistic attitude towards him
with just cause - give due notice
without just cause - liable for damages if the principal
suffers damages thereby UNLESS the agent should
base his withdrawal upon the impossibility of
continuing the performance of the agency without
grave detriment to himself
The mere fact that the agent violates his instructions does
not amount to renunciation, and although he may thus
render himself liable to the principal, he does not cease
to become an agent.
PRINCIPAL may also revoke the agency at will
EXCEPTION: agency coupled with interest
When a bilateral contract depends upon the agency
When the agency is the means of fulfilling an obligation
already contracted
When a partner is appointed as manager of a
partnership in the contract of partnership and his
removal from the management is unjustifiable.
Exception to the exception: when the agent acts to
defraud the principal
Implied Revocation of Agency
Principal appoints a new agent for the same business or
1.
2.
LOAN
Delivery by one party
and the receipt by the
other party of a given
sum of money or other
consumable thing upon
an agreement, express
or implied
To repay the same
amount of the same
kind and quality, w/ or
w/o interest
CREDIT
Ability of an individual to
borrow money or things by
virtue of the confidence or
trust reposed by a lender
that he will pay what he may
promise w/in a specified
period
COMMODATUM
(Articles 1935-1952)
CHARACTERISTICS AND CERTAIN RULES TO REMEMBER:
1. Gratuitous: If there is compensation, then its not
commodatum. It may be a lease.
2. Personal: Death of lender/borrower EXTINGUISHES
the contract
a. Borrower cant lend or lease the thing to
third persons
i. EXCEPTION: when stipulated that
he can
ii. EXCEPTION: the members of the
borrowers household may make
use of the thing
iii. EXCEPTION TO EXCEPTION: when
stipulated that members of the
househould cannot use or if the
nature of the thing forbids such use
3. Subject Matter:
a.
4.
5.
6.
7.
General Rule: To allow the bailee the use of the thing loaned
for the duration of the period stipulated or until the
accomplishment of the purpose for w/c the commodatum
was constituted.
Exceptions: Bailor may demand the return of the thing or its
temporary use when:
a.
Bailor has an urgent need for the thing (Art. 1946)
the contract is suspended
b. Bailee commits an act of ingratitude (Art. 1948)
REASONS:
a. Bailee pays because of the benefit derived from the
use of the thing
b. Bailor pays the other because he is the owner and
the thing will be returned to him
Exception Stipulation to the contrary (e.g. different
apportionment or sole burden by bailee or bailor)
5.
All other expenses which are not necessary for the use
and preservation of the thing must be shouldered by the
borrower (bailee)
b.
Money
If the transfer of ownership is on a non-fungible thing,
with the obligation of the other to give things of the
same kind, quantity and quality, it is a barter
FORM OF PAYMENT
1. If the thing loaned is money currency stipulated,
otherwise that which is legal tender in the Philippines. In
case of extraordinary inflation or deflation, payment
shall be in the value of the currency at the time of the
creation of the obligation.
2. If other than money another thing of the same kind,
quality and quantity. If impossible to do so, payment
must be its value at the time of perfection of the loan.
2.
SIMPLE LOAN OR MUTUUM is a contract whereby one of the
parties delivers to another money or other fungible thing w/
the understanding that the same amount of the same kind
and quality shall be paid.
Nature of Mutuum
a. Bilateral borrowers promise to pay is the
consideration for the lenders obligation
to furnish the loan
b. No criminal liability upon failure to pay
Subject Matter
a. Fungible or consumable - depending on the intent of
the parties; that the return of the thing is equivalent
only and not the identical thing
3.
Exceptions:
1. Indemnity for damages the debtor in delay is liable
to pay legal interest (6%/12%) as indemnity for
damages even in the absence of a stipulation for the
payment of interest. Interest as indemnity for
damages is payable only in case of default or nonperformance of contract.
======================================
TOPIC UNDER THE SYLLABUS:
B. Deposit
1. Voluntary Deposit
2. Necessary Deposit
3. Judicial Deposit
======================================
DEPOSIT
(Arts. 1962-2009)
DEPOSIT is constituted from the moment a person receives a
thing belonging to another, with the obligation of safely
keeping it and of returning the same. Safekeeping must be
the principal purpose of the contract.
Characteristics
1. Real - because it is perfected only by the delivery of the
subject matter
BUT an agreement to constitute a deposit is binding
and enforceable, since it is merely consensual
2. Unilateral - if gratuitous
3. Bilateral - if with compensation
Creation of deposit (Art. 1964)
1. By virtue of a court order or
2. By law
3. Not by the will of the parties
4. Depositary must not be the owner of the property
deposited (Art. 1962)
Kinds of Deposit
1. Judicial - when an attachment or seizure of property in
litigation is ordered
2. Extrajudicial (Art. 1967)
a. Voluntary - delivery is made by the will of the
depositor or by two or more persons each of whom
believes himself entitled to the thing deposited
b. Necessary - made in compliance with a legal
obligation, or on the occasion of any calamity, or by
travelers in hotels and inns or by travelers with
common carriers. There is lack of free choice in the
depositor.
BASIS
Creation
JUDICIAL
Will of the court
Purpose
Security or to ensure
the right of a party to
the property or to
recover in case of
favorable judgment
Generally immovables
Subject
Matter
Cause
Always onerous
EXTRAJUDICIAL
Will of the contracting
parties
Custody
and
safekeeping
Movables only
May be compensated
but
generally
gratuitious
Return
of thing
In whose
behalf it
is held
Upon demand of
depositor
Depositor or / 3rd
person designated
DEPOSITARY
INCAPACITATED /
DEPOSITOR CAPACITATED
Depositary does not incur
the
obligations
of
a
depositary
Depositary, however, is
liable to:
a) Return the thing
deposited while still in
his possession; AND
BASIS
Demandability
Benefit
Preference of
credit
IRREGULAR
DEPOSIT
Demandable at
will
of
the
irregular
depositor
for
whose benefit the
deposit has been
constituted
Benefit accrues to
the depositor
Depositor
has
preference over
other
creditors
with respect to
thing deposited
MUTUUM
Lender is bound by
the provisions of the
contract and cannot
seek restitution until
the time of payment
as provided in the
contract has arisen
Necessity of the
borrower
Enjoy no preference
in the distribution of
the
debtors
property
3.
6.
a.
8.
9.
b.
c.
b.
c.
d.
3.
19. Liability in case of alienation by the depositarys Heir
(Art. 1991)
20. Depositary may Retain the thing in pledge until the full
payment of what may be due him by reason of the
deposit (Art. 1994)
IRREGULAR DEPOSIT
May be demanded at will
by the irregular depositor
for whose benefit the
deposit
has
been
constituted
Only benefit is that which
accrues to the depositor
Depositor has preference
over other creditors
MUTUUM
Lender is bound by the
provision of the contract and
cannot seek restitution until
the time for payment, as
provided in the contract, has
arisen
If with interest, benefit if
both parties
No preference
Extinguishment of Deposit
a. Upon the loss or deterioration of the thing
deposited;
b. Upon the death of the depositary, ONLY in
gratuitous deposits;
c. Other provisions in the Civil Code (novation,
merger, etc.)
NECESSARY DEPOSIT
A deposit is necessary when: (LCCT)
1. It is made in compliance with a legal obligation
2.
3.
4.
b.
JUDICIAL DEPOSIT
Cause or origin
Purpose
Security;
Secure the right of a
party to recover in
case of favorable
judgment.
Either movable or
immovable property
but
generally,
immovable
Subject Matter
Remuneration
Always remunerated
(onerous)
In
whose
behalf it is
held
In behalf of the
person who, by the
judgment, has a right
EXTRAJUDICIAL
DEPOSIT
By will of the
parties. Hence,
there
is
a
contract
Custody;
Safekeeping of
the thing
Only
movable
property
Generally
gratuitous, but
may
be
compensated
In behalf of the
depositor
or
third
person
designated
======================================
TOPIC UNDER THE SYLLABUS:
C. Guaranty and Suretyship
1. Nature and extent of guaranty
2. Effects of guaranty
3. Extinguishment of guaranty
4. Legal and judicial bonds
======================================
GUARANTY AND SURETYSHIP
(Arts. 2047-2084)
GUARANTY By guaranty, a person called the guarantor,
binds himself to the creditor, to fulfill the obligation of the
principal debtor in case the latter should fail to do so. It is a
contract between the guarantor and the creditor.
CHARACTERISTICS OF THE CONTRACT
1.
2.
3.
Unilateral
a. It gives rise only to a duty on the part of the
guarantor in relation to the creditor and not vice
versa
b. It may be entered into even without the
intervention of the principal debtor.
4.
1.
2.
3.
Examples:
a.
b.
2.
Article 2057:
1. Requires conviction in the first instance of a crime
involving dishonesty to have the right to demand
another.
2. Judicial declaration of insolvency is not necessary in
order for the creditor to have a right to demand another
guarantor.
3.
2.
a.
4.
5.
has
left
manager
or
2.
2.
3.
2.
REASON: A compromise binds only the parties thereto and
not third persons. Thus, it cannot prejudice the guarantor or
debtor who was not party to the compromise. But if it
3.
4.
2.
3.
2.
b.
c.
2.
a.
b.
c.
2.
2.
3.
1.
2.
The law does not even grant the surety the right to sue
the creditor for delay, as protection against the risks of
possible insolvency of the debtor; but in view of the
efficacy of the action on the contract against the surety,
beginning with the date the obligation becomes due, his
b.
c.
d.
4.
1.
2.
3.
4.
5.
6.
1.
2.
3.
4.
======================================
TOPIC UNDER THE SYLLABUS:
D. Pledge
1. Definition
2. Kinds
3. Essential requirements
4. Obligation of pledge
5. Rights of pledgor
6. Perfection (Arts. 2093, 2096)
7. Foreclosure (Arts. 2112, 2115)
8. Pledge by operation of law (Art. 2121-2122)
9. Distinguished from chattel mortgage (Arts.
2140, 1484)
======================================
PROVISIONS COMMON TO PLEDGE AND MORTGAGE
(Arts. 2085-2123)
5.
6.
7.
8.
9.
PLEDGE
Constituted on movables
Property is delivered to
the pledgee, or by
common consent to a 3rd
person
Not valid against 3rd
persons
unless
a
description of the thing
pledged and the date of
the pledge appear in a
public instrument
1.
MORTGAGE
Constituted on immovables
Delivery not necessary
2.
1.
2.
3.
4.
5.
6.
7.
1.
2.
3.
4.
5.
6.
7.
Creditor :
a. Shall take care of the thing pledged with the
diligence of a good father of a family
b.
e.
9.
c.
d.
Pledgor:
a. Has the responsibility for flaws of the thing pledged.
b.
c.
d.
e.
f.
1.
2.
3.
8.
4.
Pledgee:
a. Take care of the thing with diligence of a good
father of a family.
b.
c.
d.
5.
6.
1.
2.
3.
1.
2.
Legal Pledges
1.
2.
3.
The agent may retain the things which are the objects of
agency until the principal effects the reimbursement and
pays the indemnity. (Art. 1914)
1.
2.
4.
======================================
TOPIC UNDER THE SYLLABUS:
E. Real Mortgage
1. Definition and characteristics
2. Essential requisites
3. Foreclosure
======================================
MORTGAGE
REAL MORTGAGE (Arts. 2124-2131) is a contract whereby
the debtor secures to the creditor the fulfillment of a
principal obligation, specially subjecting to such security
immovable property or real rights over immovable property
Important Points
As a general rule, the mortgagor retains possession of
the property. He may deliver said property to the
mortgagee without altering the nature of the contract of
mortgage.
It is not an essential requisite that the principal of the
mortgage credit bears interest, or that the interest as
compensation for the use of the principal and the
enjoyment of its fruits be in the form of a certain
percent thereof.
Kinds of Mortgage:
1. Voluntary
2. Legal
3. Equitable one which, although it lacks the proper
formalities of a mortgage shows the intention of the parties
to make the property as a security for a debt (governed by
Arts. 1365, 1450, 1454, 1602, 1603, 1604 and 1607)
1.
2.
3.
4.
5.
1.
2.
3.
4.
5.
Effect of Mortgage
1. Creates right in rem or real rights. A lien inseparable
from the property mortgaged, enforceable against the
whole world as long as it is registered. If not registered
the third party must know of the mortgage.
2. Creates merely an encumbrance. The law considers void
any stipulation forbidding the owner from alienating the
immovable mortgaged (Art. 2130).
The mortgagors default does not operate to vest in
the mortgagee the ownership of the encumbered
property.
His failure to redeem the property does not
automatically vest ownership of the property to the
mortgagee.
3.
4.
5.
6.
7.
2.
3.
4.
5.
6.
7.
8.
Execution of judgment
5.
6.
1.
2.
3.
a.
9.
1.
2.
3.
2.
3.
Property may be sold for less than its fair market value
upon the theory that the lesser the price the easier for
the owner to redeem
The value of the mortgaged property has no bearing on
the bid price at the public auction, provided that the
public auction was regularly and honestly conducted
a.
b.
c.
2.
3.
Judicial Foreclosure
BANKS
NON-
Extrajudicial Foreclosure
BANKS
NON-BANKS
1 year
from
registratio
n of sale
Until
registratio
n of
certificate
of sale or 3
months
from sale
whichever
is earlier
1 year
from
registratio
n of sale
1 year
from
registratio
n of sale
BANK
S
Individual
debtors/mortgagor
s
Juridical persons as
debtors/mortgagor
s
1 year
from
registratio
n of sale
1 year
from
registratio
n of sale
======================================
TOPIC UNDER THE SYLLABUS:
F. Antichresis
1. Definition and Characteristics
2. Obligations of Antichretic Creditor
======================================
ANTICHRESIS
(Arts. 2132-2139)
ANTICHRESIS is a contract whereby the creditor acquires the
right to receive the fruits of an immovable of the debtor, with
the obligation to apply them to the payment of the interest,
if owing, and thereafter to the principal of the credit.
CHARACTERISTICS
1. Accessory contract it secures the performance of a
principal obligation
Formal contract it must be in a specified form to be valid
(Art. 2134)
SPECIAL REQUISITES:
1. Only the fruits of an immovable property
2. Delivery of the immovable is necessary for the creditor
to receive the fruits and not that the contract shall be
binding
3. Amount of principal and interest must be specified in
writing (otherwise, void)
4. Express agreement that debtor will give possession of
the property to creditor and that the latter will apply the
fruits to the interest, if any, then to the principal of his
credit
NOTE: The obligation to pay interest is not essential in a
contract of antichresis, there being nothing in the Code to
show that antichresis is only applicable to securing the
payment of interest-bearing loans. On the contrary,
antichresis is susceptible of guaranteeing all kinds of
obligations, pure or conditional
OBLIGATIONS OF ANTICHRETIC CREDITOR: (FAT-P)
1. To pay taxes and charges on the estate, including
necessary expenses
NOTE: Creditor may avoid said obligation by:
a. Compelling debtor to reacquire enjoyment of the
property
b. By stipulation to the contrary
2. To apply all the fruits, after receiving them, to the
payment of interest, if owing, and thereafter to the
principal
3. To render an account of the fruits to the debtor
4. To bear the expenses necessary for its preservation and
repair
REMEDIES OF CREDITOR IN CASE OF NON-PAYMENT OF
DEBT
1. Action for specific performance
2. Petition for the sale of the real property as in a
foreclosure of mortgages under Rule 68 of the Rules of
Court
NOTE: The parties, however, may agree on an extrajudicial
foreclosure in the same manner as they are allowed in
contracts of mortgage and pledge. Tavera v. El Hogar
Filipino, Inc. [68 Phil 712]
======================================
TOPIC UNDER THE SYLLABUS:
G. Chattel Mortgage
1. Definition and characteristics
2. Registration
======================================
CHATTEL MORTGAGE
CHATTEL MORTGAGE (Arts. 2140-2141) is a contract by
virtue of which a personal property is recorded in the Chattel
Mortgage Register as security for the performance of an
obligation.
NOTE: If the movable, instead of being recorded is delivered
to the creditor, it is a pledge and not a chattel mortgage.
CHATTEL MORTGAGE
Involves movable property
Delivery of the personal
property is NOT necessary
Registration is necessary for
validity
Procedure: Sec 14 of Act no
1508, as amended
If the property is foreclosed,
the excess over the amount
due goes to the debtor
Creditor is entitled to
recover deficiency from the
debtor EXCEPT if it is a
security for the purchase of
personal
property
in
installments
1.
2.
3.
4.
5.
PLEDGE
Involves movable property
Delivery of the personal
property is necessary
Registration
is
NOT
necessary for validity
Procedure: Art 2112 of Civil
Code
If the property is sold, the
debtor is not entitled to the
to the excess UNLESS it is
otherwise agreed or in case
of legal pledge
Creditor is not entitled to
recover
deficiency
notwithstanding
any
stipulation to the contrary
1.
2.
EFFECT OF REGISTRATION
Creates real rights binding notice and symbolical
possession
Adds nothing to mortgage
RIGHT OF REDEMPTION
When the condition of a chattel mortgage is broken, the
ff may redeem:
a. Mortgagor;
b. Person holding a subsequent mortgage;
c. Subsequent attaching creditor.
======================================
TOPIC UNDER THE SYLLABUS:
H. Concurrence and Preference of Credits
1. Solutio Indebiti
2. Negotiorum Gestio
======================================
Solutio Indebiti and Negotiorium Gestio
(Arts. 2236-2251)
======================================
TOPIC UNDER THE SYLLABUS:
I. Concurrence and Preference of Credits
1. Meaning of Concurrence and Preference
2. Preferred Credits on Specific Movables
3. Exempt Property
4. Classification of Credits
======================================
CONCURRENCE AND PREFERENCE OF CREDITS
3.
4.
5.
1.
2.
3.
4.
5.
6.
======================================
TOPIC UNDER THE SYLLABUS:
J. Insolvency Law
1. Definition of insolvency
2. Suspension of payments
3. Voluntary insolvency
4. Involuntary insolvency
======================================
INSOLVENCY LAW FRIA
FRIA DEFINITION OF INSOLVENCY
Financial condition of a debtor that is generally unable to pay
its or his liabilities as they gall due in the ordinary course of
business or has liabilities that are greater than its or his
assets
For FRIA to be applicable, there must be insolvency
proceedings in the courts designated by the Supreme Court
to hear and resolve cases brought under this act
PURPOSES OF FRIA
1. To effect equitable distribution of the insolvents
property among its or his creditors
2. To benefit the debtor in discharging him from his
liabilities and enabling him to start afresh with the
property set apart to him as exempt
3. To ensure or maintain certainty and predictability of
commercial affairs
FRIA DEFINTION OF DEBTOR
Sole proprietorship (juridical debtor)
Partnership (juridical debtor)
Corporation (juridical debtor)
Individual debtor who has become insolvent
(natural debtor)
NATURE OF PROCEEDINGS
Insolvency proceedings in FRIA are proceedings in rem
HOW JURISDICTION IS ACQUIRED
Jurisdiction is acquired upon publication of notice of the
commencement of proceedings in any newspaper of general
circulation
7.
MODES OF REHABILITATION
Court-supervised rehabilitation
Pre-negotiated rehabilitation
Out of court or informal restructuring
agreements or rehabilitation plans
o
1. COURT-SUPERVISED REHABILITATION
Owner, partnership or corporation may initiate
proceedings for rehabilitation, which the proper
court oversees and deliver a final judgment
regarding the rehabilitation plan
REHABILITATION
o Restoration of the debtor to a condition of
successful operation and solvency
o The debtor is economically feasible and its
creditors can recover by way of present
value of payments projected in the plan
REHABILITATION PLAN
o Plan by which the financial well-being and
viability of the insolvent debtor can be
restored using various means
REHABILITATION RECEIVER
o Persons or persons, natural or juridical,
appointed as such by the court entrusted
with powers and duties set forth in the
FRIA
KINDS
Voluntary proceedings
o Filing a petition for rehabilitation with the
court done by the insolvent debtor
Involuntary proceedings
o Filed by a creditor or group of creditors
o Claim or aggregate claim is at least P1M or
at least 25% of capital stock or partners
contribution, whichever is higher
TYPES OF PROCEEDINGS
Initiation proceedings
o
o
o
o
Failure of rehabilitation:
Dismissal of petition by court
2. PRE-NEGOTIATED REHABILITATION
Parties to file a petition for a pre-negotiated rehabilitation
plan
Insolvent debtor by itself; or
Jointly with any of its creditors
Requisites for a petition for a pre-negotiated rehabilitation
plan
RESTRUCTING
I.
II.
Voluntary Liquidation:
a.
b.
Procedure:
i. Filing of Petition (Sec 90)
ii. If court finds petition sufficient in form and
substance, it shall issue the Liquidation
Order (Sec 104)
iii. Publication of the petition or motion in a
newspaper of general circulation once a
week for 2 consecutive weeks [Sec 112
(d)]
iv. Hearing for election and appointment of
liquidator [Sec 112 (j)]
v. Direct payments of any claims and
conveyance of any property due the
debtor to the liquidator [Sec 112 (e)]
vi. Liquidation of the debtors assets and
payment of his debts by the Liquidator
(Sec 119)
vii. Discharge of Liquidator (Sec 122)
viii. Appeal if proper
b.
Procedure:
i. Filing of the petition of 3 or more
creditors (Sec 91)
ii. Issuance of order:
1. Directing publication of
petition or motion in a
newspaper
of
general
circulation once a week for 2
consecutive weeks
2. Directing the debtor and all
creditors to file their
comment on the petition
iii. Filing of comments
iv. Consideration of comments filed by
the court
v. Issuance of the liquidation order
vi. Publication of the petition or motion
in a newspaper of general circulation
once a week for 2 consecutive weeks
[Sec 112 (d)]
vii. Hearing for election and appointment
of the liquidator [Sec 112 (j)]
viii. Direct payments of any claims and
conveyance of any property due the
debtor to the liquidator [Sec 112 (e)]
ix. Liquidation of the debtors assets and
payment his debts by the Liquidator
(Sec 119)
x. Discharge of Liquidator (Sec 122)
xi. Appeal if proper
Involuntary Liquidation:
a.
I.
d.
e.
b.
c.
Procedure:
i. Filing of petition by debtor (Sec 94)
ii. Issuance by the court of an order
calling a meeting of creditor (Sec 95)
iii. Publication of said order and service
of summons
Purpose
Property
Amount of
Indebtedness
Amount of
indebtedness is
not affected
INSOVENCY
Discharge the
debtor from the
payment of debts
Debtor does not
have sufficient
property
Creditors receive
less than their
credits, and in
case there are
preferences,
some creditors
may not receive
any amount at all
I.
Voluntary Liquidation
a.
b.
Procedure:
i. Filing of the petition by the debtor
praying for the declaration of
insolvency (Sec 103)
ii. If the court finds the petition
sufficient in form and substance, it
shall issue the Liquidation Order (Sec
104)
iii. Publication of the petition or motion
in a newspaper of general circulation
once a week for 2 consecutive weeks
[Sec 112 (d)]
d.
e.
II.
Involuntary Liquidation
a.
c.
Acts of Insolvency:
i. That such person is about to depart
or has departed from the Republic of
the Philippines, with intent to defraud
his creditors;
ii. That being absent from the Republic
of the Philippines, with intent to
defraud his creditors, he remains
absent;
iii. That he conceals himself to avoid the
service of legal process for the
purpose of hindering or delaying the
liquidation or of defrauding his
creditors;
iv. That he conceals, or is removing, any
of his property to avoid its being
attached or taken on legal process;
v. That he has suffered his property to
remain under attachment or legal
process for three (3) days for the
purpose of hindering or delaying the
liquidation or of defrauding his
creditors;
vi. That he has confessed or offered to
allow judgment in favor of any
creditor or claimant for the purpose
of hindering or delaying the
liquidation or of defrauding any
creditors or claimant;
vii. That he has willfully suffered
judgment to be taken against him by
default for the purpose of hindering
d.
iii.
iv.
v.
vi.
vii.
viii.
ix.
x.
xi.
xii.
e.
f.
g.
1.
2.
3.
4.
Number of
creditors
Filed by:
VOLUNTARY
One
Insolvent debtor
Acts of insolvency
Must not be
guilty
Amounts of
indebtedness
Bond
Order of
Adjudication
Length of
residence (for
RTC)
Must exceed
P500,000
Not Required
May be granted
ex parte
Province or city
in which debtor
has resided for 6
months prior to
petition
Upon filing of the
voluntary
petition
INVOLUNTARY
Any creditor or
group of creditors
3 or more creditors
with qualifications
set by laws
Must have
committed one or
more
Not less than
P500,000
Required
Granted only after
hearing
Immaterial
g)
h)
REHABILITATION
LIQUIDATION
COURT SUPERVISED
How Made
Voluntary
Proceedings
Involuntary
Proceedings
PRE-NEGOTIATED
- verified
petition
- verified
petition
-verified petition
INFORMAL
RESTRUCTURING
AGREEMENT
Done without
court
intervention
provided that it
meets the
minimum
requirement of
FRIA
Voluntary
Involuntary
1) verified
petition for
liquidation in
court
2) verified
motion to
convert pending
rehabilitation
proceeding into
a liquidation
proceeding
1) verified
petition for
liquidation in
court
2) verified
motion to
convert
pending
rehabilitatio
n proceeding
into a
liquidation
proceeding
Purpose
Establish
insolvency and
the viability of
rehabilitation
in court
Establish
insolvency and
the viability of
rehabilitation
in court
To negotiate
terms of the
rehabilitation
plan without
court
intervention
To establish the
insolvency of
debtor for
purposes of
liquidation
To establish
the
insolvency of
debtor for
purposes of
liquidation
Parties
Filed by
Insolvent
Debtor
-sole
proprietorship:
owner
Filed by
Creditor or
group of
creditors with
aggregate claim
of at least 1M
Filed by Insolvent
debtor by itself or
jointly with other
creditors
Rehabilitation
Plan must be
approved by:
1) debtor
2) creditors
representing at
Filed by the
Insolvent debtor
3 or more
creditors
with the
aggregate
claims of at
least 1M or
Involuntary
Liquidation
Suspension
of Payments
Verified
petition
court of the
city/province
where
debtor has
resided 6
months prior
to filing
Verified
petition in
the court of
the province
or city in
which the
individual
debtor
resides
Verified
petition
before
city/province
where
debtor has
resided 6
months prior
to filing
to impound
all of
debtors
non-exempt
property, to
distribute it
equitably
among his
creditors and
to release
him from
further
liability
Creditor or
group of
creditors
with a claim
or aggregate
claim of at
to be
declared in a
state of
suspension
of payment
*filing of
such
petition=act
of insolvency
to apply for
discharge of
debts and
liabilities
Individual
debtor
Individual
debtor
Grounds
-partnership:
partners
-corporation:
majority vote
of BoD or
trustees + 2/3
vote of SH
representing
outstanding
capital stock or
2/3 vote of
members
or at least 24%
of subscribed
capital stock or
partners
contributions,
whichever is
higher
Debtors
insolvency or
inability to pay
its obligations
as they become
due
1) no genuine
issue of fact or
law on the
claim/s of the
petitioner/s
and that the
due and
demandable
payments have
not been made
for at least 60
days or that the
debtor has
generally failed
to meet its
liabilities as
they fall due
2)creditor,
other than the
petitioner/s has
initiated
Consent of the
parties involved
to the informal
re-structuring
agreement
at least 25%
of the
subscribed
capital stock
or partners
contributions
of the
debtor,
whichever is
higher
Rehabilitation is
no longer
possible
1) no
genuine
issue of fact
or law on the
claim/s of
the
petitioner/s,
and that the
due and
demandable
payments
thereon have
not been
made for at
least 180
days or the
debtor has
failed
generally to
meet its
liabilities as
they fall due
least 500K
Debtor
doesnt have
sufficient
properties to
cover his
liabilities and
the debts
which he
owes
exceeds 500k
Acts of
Insolvency
which tends
to delay the
liquidation or
to defraud
any creditors
like:
1)debtor has
departed
from the
Philippines,
with intent
to defraud
his creditors;
2) he
conceals
himself to
avoid the
service of
legal process
for the
Debtor has
sufficient
property to
cover all his
debts BUT
foresees the
impossibility
of meeting
debts when
they become
due
foreclosure
proceedings
against the
debtor that will
prevent the
debtor from
paying its debts
as they become
due or will
render it
insolvent
1)
circumstances
sufficient to
support
petition
2)specific relief
sought
3)Rehabilitatio
n Plan
4) names of at
least 3
nominees to
the position of
receiver
Minimum
requiremen
ts of the
petition
1) schedule of
debtors
liabilities with
list of creditors
2)an inventory
of all its assets
3)Rehabilitatio
n Plan
4) names of at
least 3
nominees to
the position of
receiver
Court
Action
(if sufficient
in form and
substance)
COMMENCEMENT ORDER
-shall appoint a rehabilitation
receiver
-summarize requirements and
deadlines for creditors to
establish their claim
-include a STAY or SUSPENSION
ORDER
purpose of
hindering or
delaying the
liquidation
2) no
substantial
likelihood
that the
debtor may
be
rehabilitated
1) schedule of
debtors liabilities
with list of
creditors
2)an inventory of
all its assets
3) pre-negotiated
Rehabilitation plan
and names of at
least 3 nominees
to the position of
receiver
4) summary of
disputed claims
against debtor and
report on the
provisioning of
funds
Court order
-shall appoint a
rehabilitation
receiver, if
provided in the
plan
- service of petition
to each creditor
who is not a
petitioner holding
at least 10% of
N/A
1) schedule of
debtors
liabilities with
list of creditors
2)an inventory
of all its assets
3) names of at
least 3 nominees
to the position
of liquidator
none
1)schedule of
debts and
liabilities
2) inventory
of assets
Posting of
bond in the
amount
determined
by the court
1)schedule of
debts and
liabilities
2)inventory
of assets
3)proposed
agreement
with
creditors
Insolvent debtor
or creditor may
seek court
assistance for the
execution or
implementation
of the agreed
Rehabilitation
Plan
Liquidation
Order
Court Order:
1)publication
2)directing
debtors and
creditors to
file comment
Liquidation
order
1) show
cause order
2) liquidation
order
Court Order:
1) calling of
creditors
meeting
2)publication
of said order
and service
of such order
to all
creditors
3)suspend
Liquidation
order
total liabilities of
debtor
-
Publication
none
Notice of
Rehabilitation
plan: published
once a week for 3
consecutive
weeks in a
newspaper of
general
circulation
Petition or
motion: Once a
week for 2
consecutive
weeks in a
newspaper of
general
circulation
Petition or
motion:
Once a week
for 2
consecutive
weeks in a
newspaper
of general
circulation
none
none
Hearing
For the
determination of
the objections to
the Rehabilitation
plan
N/A
For the
election and
appointment
of liquidator
For the
election and
appointment
of liquidator
For the
election and
appointment
of liquidator
Approval of the
Rehabilitation plan
shall have the legal
effect as
Confirmation of
Plan
CRAM DOWN
EFFECT: the
Rehabilitation
Plan shall have
the same legal
effect as
Confirmation of a
Plan
LIQUIDATION ORDER:
1)The juridical debtor is dissolved and its juridical existence
terminated
2)Legal title of all the assets of the debtor shall be vested in the
liquidator/court
3)All contracts of the debtor shall be deemed terminated unless
the liquidator, w/in 90 days from the date of his assumption of
office, declares otherwise and the contracting party agree
4)No separate action for the collection of an unsecured claim
shall be allowed (direct claims to liquidator)
5) No foreclosure proceeding shall be allowed for 180 days
Effect
CONFIRMATION OF
REHABILITATION PLAN
any pending
execution
against
debtor upon
motion
Order: Once
a week for 2
consecutive
weeks in a
newspaper
of general
circulation;
with first
publication
made within
7 days from
issuance of
Order
SUSPENSION
ORDER: No
creditor shall
sue or
institute
proceedings
to collect his
claim from
the debtor
from the
time of filing
of the
Plan shall be
deemed approved.
petition and
for so long as
the
proceedings
remain
pending
Except:
a)those
creditors
having claims
for personal
labor,
maintenance
, expense of
last illness of
debtor 60
days prior
filing
b) secured
creditors
Object
Purpose
Obligation
Status of
Ownership
Ability to demand
return
COMMODATUM
Non-consumable
Except:
consumable if
used for
exhibition
purposes only
Temporary use of
the thing
Anytime, if no
period or purpose
has been agreed
upon or if by
mere tolerance
only (precarium)
MUTUUM
Fungible/
consumable
(i.e. money)
DEPOSIT
Movable/personal
property
BARTER
Non-consumable
Consumption
Safekeeping
Use or
consumption
Return a thing of
the same kind
and quality
Passes to bailee
Anytime
Compensation
Gratuitous or
onerous
Gratuitous or
onerous
Passes to the
other party
(mutual
exchange)
Cannot demand
return because
contract is
already
extinguished
Rescission only if
grounds exist
If there is an
urgent necessity
Acts of
ingratitude by the
bailee
Essentially
gratuitous
Exchange (sale)
Exchange a thing
of the same kind,
quality and
quantity
onerous
Retained by the
depositor
Anytime up to:
a. Surrender of
warehouse
receipt
b. Offer to pay
warehousema
ns lien
c. Sign the
acknowledgem
ent
Onerous
REAL MORTGAGE
Object
Immovables
Real Rights over immovables
(leasehold rights)
Requisites
1.
2.
3.
CHATTEL MORTGAGE
Movables
Except: can CM buildings by
agreement and no innocent
third party prejudiced
PLEDGE
ANTICHRESIS
Movables
Incorporeal
rights
evidenced
by
negotiable instruments,
bills of lading, shares of
stock,
bonds,
warehouse receipts
1.
2.
*RM, CM and Pledge is VALID as between the parties even if registration requirements
are not complied with BUT is not binding to 3rd persons
To bind 3rd
persons
Delivery?
Effect
default
of
Foreclosure
Deficiency
Immovables
Must be in a public
instrument with a
description of thing
pledged and the date
Delivery essential
constitute pledge
Must be in writing
Express agreement
between
debtorcreditor that the
fruits will be applied
to
payment
of
interest if any, and
then to the principal
Must be registered in the
RD
to
3.
4.
5.
6.
2. CERTIFICATE OF TITLE
PROBATIVE VALUE OF THE TORRENS TITLE
Torrens Title may be received in evidence in all Philippine
courts , and shall be conclusive as to all matters contained
therein, principally as to the identity of the land owner except
so far as provided in the Land Registration Act.
3. Accretion
2.
1. Public Grant
2. Acquisitive
Prescription
Requisites: G-C-A
1. The deposit of soil or sediment
be gradual and imperceptible,
2. It is the result of the current of
the waters (river/sea), and
3. The land where accretion takes
place is adjacent to the banks
of rivers or the sea coast
Accretion to registered lands needs
new registration
4. Reclamation
5. Voluntary Transfer
6. Involuntary
Alienation
7. Descent or Devise
8. Emancipation
Patent/Grant
(Certificate of Land
Ownership Award)
B. REGALIAN DOCTRINE
1. CONCEPT
Under the Regalian doctrine which is embodied in Section 2,
Article XII of the 1987 Constitution, all lands of the public
domain belong to the State, which is the source of any asserted
right to ownership of land. ll lands of the public domain,
waters, minerals, coal, petroleum and other mineral oils, all
forces of potential energy, fisheries, forests, or timber, wildlife,
flora and fauna, and natural resources belong to the state.
With the exception of agricultural lands, all other natural
resources shall not be alienated
2. EFFECTS
All lands not appearing to be clearly within private
ownership are presumed to belong to the State. Unless public
land is shown to have been reclassified or alienated to a private
person by the State, it remains part of the inalienable public
domain. To overcome this presumption, incontrovertible
evidence must be established that the land subject of the
application is alienable or disposable.
To prove that the land subject of an application for
registration is alienable, an applicant must establish the
existence of a positive act of the government such as a
3. CONCEPT OF
IMMEMORIAL
NATIVE
TITLE,
1.
2.
3.
4.
TIME
5.
6.
7.
C. CITIZEN REQUIREMENTS
1. INDIVIDUALS AND CORPORATIONS
Alienable lands of the public domain:
Only Filipino citizens may acquire not more than 12 hectares
by purchase, homestead or grant, or lease not more than 500
hectares.
Private corporations may lease not more than 1,000 hectares
for 25 years renewable for another 25 years
D. NON-REGISTRABLE PROPERTIES
NON-REGISTRABLE PROPERTIES
Article 420 NCC
1. Those intended for public use, such
as roads, rivers, torrents, ports and
bridges constructed by the State,
banks, shores, roadsteads, and
others of similar character
2. Those which belong to the State,
without being for public use, and
are intended for some public
service or for the development of
the national wealth.
Regalian Doctrine
under the 1935,
1973, and 1987
Constitution
E. ORIGINAL REGISTRATION
Types Of Registration:
1. Original Registration
2. Subsequent Registration
ORIGINAL REGISTRATION UNDER P.D. 1529 is a proceeding
brought before the RTC (as a land registration court) to
determine title or ownership of land on the basis of an
5.
Purpose of publication:
1. To confer jurisdiction over the land applied for upon the
court
2. To charge the whole world with knowledge of the
application of the land involved, and invite them to take
part in the case and assert and prove their rights over
the subject land
b.
3.
4.
the LRA
Publication of notice of the filing of the application and
the date and place of the hearing in the Official Gazette.
The notices required are mandatory.
a. Publication of notice of initial hearing
i.
Once in the Official Gazette (this confers
jurisdiction upon the court)
ii.
Once in a newspaper of general circulation
Mailing
Within 7 days after publication of said notice in
the OG, mailing of notice to:
i.
Persons named in the notice
ii.
Sec. of Public Highways, Provincial Governor,
and Mayor, if the applicant requests to have
the line of a public way or road determined
iii.
Sec. of Agrarian Reform, Solicitor General,
Director of Lands, Director of Fisheries, and
Director of Mines, if the land borders on a
river, navigable stream, or shore, or on an arm
of the sea where a river or harbor lies
iv.
Other persons as the court may deem proper
c. Posting
Posting in conspicuous place on subject land and on
bulletin board of municipal building at least 14 days
before initial hearing
6.
2.
3.
4.
1987 Constitution)
a. May only Lease (CANNOT own land of the public
domain) for 25 years renewable
b. Limited to 1,000 hectares
c. Apply to both Filipinos & foreign corporations
Determinative of this issue is the character of the parcels of
land whether they were still public or already private when
the registration proceedings were commenced. If they are
already private lands, the constitutional prohibition against
acquisitions by a private corporation would not apply.
Natividad v. CA, [202 SCRA 439, 1991]
FORM OF THE APPLICATION
(Sec. 15, PD 1529): (WSS)
1. Written
2. Signed by the applicant or person duly authorized in his
behalf
- If there is more than 1 applicant, the application shall
be signed and sworn to by and in behalf of each.
3. Sworn to before an officer authorized to administer oath
for the province or city where the application was actually
signed
CONTENTS OF APPLICATION
(Sec. 15, P.D. 1529): (MADFARCE)
1. Manner of acquisition of land
2. Assessed value of the land and the buildings and other
improvements based on the last assessment for taxation
purposes
3. Description of the land applied for together with the
buildings and improvements; the plan approved by
Director of Lands and the technical descriptions must be
attached
4. The court may require Facts to be stated in the application
in addition to those prescribed by the Decree not
inconsistent therewith and may require the filing of
additional papers
5. Full names and addresses of All occupants of the land and
those of the Adjoining owners, if known; and if not known,
the applicant shall state the extent of the search made to
find them
6. If the application describes the land as bounded by a
public or private way or Road, it shall state whether or not
the applicant claims any portion of the land within the
limits of the way or road, and whether the applicant
desires to have the line of way or road determined (Sec.
20, PD 1529)
7. Citizenship and Civil status of the applicant
if married, name of spouse, and
if the marriage has been legally dissolved, when
and how the marriage relation was terminated
8. Mortgage or Encumbrance affecting the land or names of
other persons who may have an interest therein, legal or
equitable
9. If the applicant is a non-resident of the Philippines, he shall
SPECIAL DEFAULT
When a party appears at initial
hearing without having filed an
answer and asks court for time
to file answer but failed to do
so within period allowed
the land and the winning party desires to oust him therefrom.
Ronald Ting v. Liro, [G.R. No. 168913, March 14, 2007]
Post-Judgment Incidents
1. Writ of Possession: order to sheriff to deliver the land to
the successful party litigant; no prescription against: (1)
the loser and (2) anyone unlawfully and adversely
occupying
When writ may not issue: When a party entered into property
after issuance of final decree, is not an oppositor in registration
proceeding, and is in possession of land for at least 10 years
2.
3.
4.
5.
6.
7.
8.
9.
Parties
Purpose
3. CADASTRAL REGISTRATION
PD 1529
Voluntary
Landowner
usually involves
private land
it may also refer to
public agricultural
lands if the object
of the action is
confirmation of an
imperfect title
Applicant and
opponent
Petitioner comes to
court to confirm his
title and seeks the
registration of the
land in his name
Landowner
CADASTRAL
Compulsory
Director of Lands
all classes of lands
are included
Government,
Landowners must
come to court as
claimants of their
own lands
Government asks
the court to settle
and adjudicate the
title of the land
Person who
requests the
survey
Effect of
judgment
Procedure: (NN-CP-PAHD-DI)
1. Notice of cadastral survey published once in OG and
posted in conspicuous place with a copy furnished to
the mayor and barangay captain
2. Notice of date of survey by the Bureau of Land
Management and posting in bulletin board of the
municipal building of the municipality or barrio, and
he shall mark the boundaries of the lands by
PATENTS
Classification of Land of Public Domain:
The classification is the exclusive prerogative of executive and
no adverse claim
if the applicant
fails to prove his
title, his application
may be dismissed
without prejudice
(no res judicata)
Government
if none of the
applicants can
prove that he is
entitled to the land,
the same shall be
declared public (res
judicata)
1.
2.
Homestead Restrictions:
1. Land cannot be alienated within 5 years after approval
of application for patent
2. It cannot be liable for satisfaction of debt within 5 years
after approval of patent application
3. Subject to repurchase of heirs within 5 years after
alienation when allowed already
4. No private corporation, partnership, association may
lease land unless it is solely for commercial, industrial,
educational, religious or charitable purpose, or right of
way (subject to consent of grantee and approval of
Secretary of Environment & Natural Resources)
Exceptions:
1. Action for partition because it is not a conveyance
2. Alienations or encumbrances made in favor of the
government
Erring Homesteader not Barred by Pari Delicto
- Pari delicto rule does not apply in void contracts
- Violation of prohibition results in void contract
- Action to recover does not prescribe
KINDS
Homestead
Patent
Free
Patent
TO WHOM
GRANTED
To any
Filipino
citizen over
the age of
18 years or
head of a
family
To any
natural born
citizen of the
Philippines
(filing ended
Dec. 31,
OTHER REQUIREMENTS
Grantee does not own more than 12
hectares of land in the Philippines or
has not had the benefit of any
gratuitous allotment of more than 12
hectares
must have resided continuously for
at least 1 year in the municipality
where the land is situated
must have cultivated at least 1/5 of
the land applied for
Grantee does not own more than 12
hectares of land
has continuously occupied and
cultivated, either by himself or his
predecessors-in-interest, tracts of
disposable agricultural public land for
at least 30 years prior to March
28,1990
2000)
Sales
Patent
Citizens of
the
Philippines
of lawful age
or head of
the family
may
purchase
public
agricultural
land of not
more than
12 hectares
To any
citizen of
legal age for
residential
purposes
Special
Patent
To NonChristian
Filipinos
under the
Public Land
Act
1.
2.
3.
4.
lapse of one year -- may still bring an action for the reversion
to the public domain of land that has been fraudulently
granted to private individuals. Further, this indefeasibility
cannot be a bar to an investigation by the State as to how the
title has been acquired, if the purpose of the investigation is
to determine whether fraud has in fact been committed in
securing the title. Republic v. Heirs of Alejaga, [393 SCRA
361, 2002]
4. REMEDIES
REMEDIES AVAILABLE TO AGGRIEVED PARTY IN
REGISTRATION PROCEEDINGS
Motion to Lift/Set Aside order of default
(Rule 9 3)
By defaulted oppositor
Before judgment
Fraud, accident, mistake, excusable negligence (FAME) and
with valid defense, under oath
Motion for New Trial
(Rule 37)
By aggrieved party
Within 15 days from receipt of judgment
Grounds (FAMINE):
a. FAME
b. Newly discovered evidence:
Discovered after trial
not discovered earlier even with exercise of diligence
will probably alter judgment
c. Award of excessive damages, or insufficiency of
evidence to justify decision, or that the decision is
against the law
Appeal
by aggrieved party
Within 15 days from notice of judgment
To the CA by ordinary appeal; thence to SC by petition for
review
Relief from Judgment
(Rule 38 2)
By aggrieved party
Within 60 days from knowledge of, and 6 months from,
judgment
no new trial
upon finality of judgment
Requisites:
a. FAME, with affidavit of merit; in case of extrinsic fraud,
state that deprived of hearing or prevented from
appealing
b. After judgment
c. Person deprived of right is party to case (applicant or
oppositor)
Petition for Review of Registration Decree
( 32 PD1529)
By aggrieved party, including person deprived of
opportunity to be heard
To be filed in same registration case
Within 1 year after entry of decree of registration
it will not prosper if transferred to innocent purchaser for
value
Grounds:
a. actual or extrinsic fraud, committed outside trial,
preventing petitioner from presenting his side
b. fatal infirmity in the decision for want of due process
c. lack of jurisdiction of the court
Requisites:
a. Petitioner has a real and dominical right
b. He has been deprived of such right
c. Through actual or extrinsic fraud
d. The petition is filed within 1 year from the issuance of
the decree
e. The property has not been passed on to an innocent
purchaser for value (IPV)
Action for
Reconveyance
(96 PD 1529/ 102 Act 496)
By aggrieved party, whose land was registered wrongly to
another person
Before issuance of decree, or within/after 1 year from entry
Available so long as property not yet passed to IPV
action in personam
if based on fraud, it must be instituted within 4 years from
the discovery of the fraud
if based on implied trust: it must be filed within 10 years
from issuance of OCT,
if action brought by registered owner or his children, coheir, or plaintiff in possession: imprescriptible
if based on expressed trust: imprescriptible
if based on void contract: imprescriptible
Action for Damages
By aggrieved party
After 1 year from decree and no reconveyance possible due
to IPV
Within 4 years from discovery of fraud (actual or
constructive)
Against person responsible for fraud
Requisites:
a. Person is wrongfully deprived of his land by registration
in name of another
b. No negligence on his part
c. Barred/ precluded from bringing an action (after 1 year
from decree)
d. Action for compensation has not prescribed
Action for Compensation from the Assurance Fund
By person deprived of his land by reason of operation of
Torrens System, provided: no negligence on his part and
barred from recovering land
a.
b.
c.
d.
e.
c.
2.
7.
b.
JUDICIAL RECONSTITUTION
Process:
1. File a petition with the RTC (In rem proceeding)
2. The court shall cause a NOTICE to be PUBLISHED,
POSTED and MAILED. Non-compliance voids the
proceeding as such requirements are jurisdictional
3. When the court grants the petition, it shall issue a
corresponding order to ROD.
Sources:
1. FOR OCT (in this order):
a. Owners duplicate of the certificate of title
b. Co-owners, mortgagees or lessees duplicate of
said certificate
c. Certified copy of such certificate, previously
issued by the ROD
d. Authenticated copy of the decree of registration
or patent, as the case may be, which was the
basis of the certificate of title,
e. Deed of mortgage, lease, or encumbrance
containing description of property covered by the
2.
g.
NOTE:
The law provides for retroactive application thereof to cases 15
years immediately preceding 1989
When the duplicate title of the landowner is lost, the proper
petition is not reconstitution of title, but one filed with the
court for issuance of new title in lieu of the lost copy
PUBLICATION, MAILING AND POSTING IN PETITIONS FOR
RECONSTITUTION OF TITLE:
Notice shall be PUBLISHED twice in successive issues of the
Official Gazette,
ADMINISTRATIVE RECONSTITUTION
May be availed of only in case of:
1. Substantial loss or destruction of the original land
titles due to fire, flood, or other force majeure as
determined by the Administrator of the LRA
2. The number of certificates of title lost or damaged
should be at least 10% of the total number in the
possession of the Office of the ROD
3. These lost or damaged titles should not be less than
500, and
4. Petitioner must have the duplicate copy of the
certificate of title (RA 6732)
Sources:
1. Owners duplicate of the certificate of title
2. Co-owners, mortgagees, or lessees duplicate
of said certificate
Contents
a. That the owners duplicate of the certificate of
title had been lost or destroyed
b. That no co-owners, mortgagors, or lessees
duplicate had been issued
c. The location, area and boundaries of the
property
d. The nature and description of the buildings or
improvements, if any, which do not belong to
the owner of the land, and the names and
addresses of the owners of such buildings or
improvements
e. The names and addresses of the (a) occupants
or persons in possession of the property, (b) of
the owners of the adjoining properties and (c)
of all persons who may have any interest in the
property
f. A detailed description of the encumbrance, if
any, affecting the property
6.
F. SUBSEQUENT REGISTRATION
SUBSEQUENT REGISTRATION
Sale
Real property mortgage
Lease
Pacto de retro sale
Extra-judicial settlement
Free patent/homestead
Powers of attorney
Trusts
An innocent purchaser for
value of registered land
becomes the registered
owner the moment he
presents and files a duly
notarized and valid deed of
sale and the same is
entered in the day book
and at the same time he
surrenders or presents the
owners
duplicate
certificate of title covering
the land sold and pays the
registration fees
Need to present title to
INVOLUNTARY DEALINGS
Refer to such writ or order or
process issued by a court of
record affecting registered
land which by law should be
registered to be effective, and
also to such instruments which
are not the willful acts of the
registered owner and which
may have been executed even
without his knowledge or
against his consent
Attachment
Injunction
Mandamus
Sale on execution of
judgment or sales for taxes
Adverse claims
Notice of lis pendens
Entry thereof in the day book
of the ROD is sufficient notice
to all persons even if the
owners duplicate certificate
of title is not presented to the
ROD
No
presentation
required;
1. VOLUNTARY DEALINGS
Operative Act: registration by owner, if deed is not
registered, is binding only between parties
General Rule MIRROR DOCTRINE: Where there is nothing
on the certificate of title to indicate any cloud or vice in the
ownership of the property, or any encumbrance thereon, the
purchaser is not required to explore further than what the
Torrens title upon its face indicates in quest for any hidden
defect or inchoate right that may defeat his right thereto.
Fule v. Legare,[ 7 SCRA 351, 1963]
Every person dealing with registered land may safely rely on
the correctness of the certificate of title issued therefore
Even if a decree in a registration proceeding is infected with
nullity, still, an innocent purchaser for value relying on a
Torrens title issued in pursuance thereof is protected. Cruz v.
CA & Suzara, [281 SCRA 491, 1997]
Although generally a forged or fraudulent deed is a nullity
and conveys no title, however, there are instances where
such a fraudulent document may become the root of a valid
title. One such instance is where the certificate of title was
already transferred from the name of the true owner to the
forger, and while it remained that way, the land was
subsequently sold to an innocent purchaser. Fule v. Legare,
[7 SCRA 351, 1963]
Exceptions (BOB-MILK)
1. Where the purchaser or mortgagee is a
bank/financing institution, the general rule that a
purchaser or mortgagee of the land is not required to
look further than what appears on the face of the title
does not apply. Dela Merced v. GSIS, [365 SCRA 1,
2001]
2. The ruling in Fule v. Legare cannot be applied where
the owner still holds a valid and existing certificate of
title covering the same property because the law
protects the lawful holder of a registered title over
the transfer of a vendor bereft of any transmissible
right. Tomas v. Tomas, [98 SCRA 280, 1980]
3. Purchaser in bad faith. Egeo v. CA, [174 SCRA 484,
1989]
4. Where a person buys land not from the registered
owner but from one whose rights to the land has been
merely annotated on the certificate of title. Quiniano
v. CA, [39 SCRA 221, 1971]
5. Sufficiently strong indications to impel closer inquiry
into the location, boundaries, and condition of the lot.
2.
Effects of Registration
1. Creates a lien that attaches to the property in favor of
the mortgagee
2. Constructive notice of his interest in the property to the
whole world
Effects of Failure to Register
1. Valid between parties but void against 3rd persons
2. If instead of registration, it is delivered, it shall be a
pledge and not a chattel mortgage (if no chattel
mortgage deed executed)
3. Actual knowledge is same effect as registration
An Affidavit of Good Faith states that:
1. Mortgage is made to secure obligation specified
2. That it is a valid and just obligation
3. That it is not entered into for purposes of fraud
Effect of Absence of Affidavit of Good Faith
4. Vitiates mortgage as against creditors and subsequent
encumbrancers
5. Mortgage is not valid as between parties
6. No need to be in public document
Registration of Lease
It is the lessee, not the lessor, who is required to initiate the
registration.
1.
2.
3.
2. INVOLUNTARY DEALINGS
Transactions affecting land in which cooperation of registered
owner is not needed, or even against his will
1. Attachment
A writ issued at the institution or during progress of an action
commanding the sheriff to attach the property, rights, credits,
or effects of the defendant to satisfy demands of the plaintiff
Kinds:
c. Preliminary
d. Garnishment
e. Levy on execution
Registration of Attachment/Other Liens
1. Copy of writ in order to preserve any lien, right, or
attachment upon registered land may be filed with ROD
where land lies, containing number of certificate of title
of land to be affected or description of land
2. ROD to index attachment in names of both plaintiff and
defendant or name of person for whom property is held
or in whose name stands in the records
3. If duplicate of certificate of title is not presented:
a. ROD shall, within 36 hours, send notice to
registered owner by mail stating that there has
been registration and request him to produce
duplicate so that memorandum may be made
b. If the owner neglects or refuses to comply, the ROD
shall report the matter to the court
c. The court, after notice, shall enter an order to
owner to surrender certificate at the time and place
named therein
4. Although notice of attachment is not noted in
duplicate, notation in book of entry of ROD
produces the effect of registration already.
Effects of Registration of Attachment (REEA)
1. Creates real right
2. Has priority over execution sale
3. But between 2 attachments, one that is registered earlier
is preferred
4. If it is not registered, actual knowledge is the same as
registration
2. Execution Sale
To enforce a lien of any description on registered land, any
execution or affidavit to enforce such lien shall be filed with
3. Tax Sale
Sale of land for collection of delinquent taxes and penalties
due the government
a. In personam (all persons interested shall be notified so
that they may be given an opportunity to be heard)
b. Notice to be given to delinquent tax payer at his last
known address
c. Publication of notice must also be made in English,
Spanish, and local dialect, posted in a public and
conspicuous place in the place where the property is
situated and at the main entrance of the provincial
building
d. Sale cannot affect rights of other lien holders unless
given the right to defend their rights: due process must
be strictly observed
e. Tax lien is superior to an attachment
f. There is no need to register a tax lien because it is
automatically registered once the tax accrues
g. But the sale of registered land to foreclose a tax lien
needs to be registered
Procedure of Registration of Tax Sale
1. Officers return shall be submitted to the ROD
together with the owners duplicate title
2. Register in the registration book
3. Memorandum shall be entered in the certificate as an
adverse claim or encumbrance
4. After the period of redemption has expired and no
redemption was made (2 years from registration of
auction sale), title must be cancelled and a new title
will be issued
5. Before the cancellation, notice shall be sent to
registered owner, with the directive that he surrender
title and show cause why it should not be cancelled
4. Adverse Claim
A notice to third persons that someone is claiming an
interest on the property or has a better right than the
registered owner thereof. The disputed land is subject to the
outcome of the dispute. Sajonas v. CA, [258 SCRA 79, 1996]
Claim is adverse when:
1. A claimants right or interest in the registered
land is adverse to the registered owner;
2. Such right arose subsequent to date of original
registration
3. No other provision is made in the Decree for
the registration of such right or claim (Sec. 70,
PD 1529)
b.
c.
d.
FILING of APPLICATION
INITIAL HEARING
TRIAL
same order as ordinary civil
proceedings
JUDGMENT
Appeal
(15) days
FINALITY OF JUDGMENT
Decree of finality
Instruction to LRA to issue decree
of registration
Entry of DECREE OF
REGISTRATION in LRA
Copy sent to Registrar of Deeds
OCT
Transcription of the decree
and issuance of the OCT
Filing of OPPOSITION
By any party
claiming interest
On/ before hearing
OR time allowed by
court
CADASTRAL
SURVEY
President orders
Dir. Of Lands to
cause cadastral
survey
NOTICE of
Survey to
persons appearing
to claim interest
Publication
1x in OG
Mailing
Posting
Geodetic
Engineer/
employees of
Bureau of Lands
inform occupants/
persons claiming
interest
Persons claiming
interest cooperate
w/ Engineer re:
boundaries
Instituted by Dir. of
Lands (represented by
Sol-Gen)
Containing:
technical
description
survey plan
HEARING
JUDGMENT DECREE
ANSWER to
Petition
NOTICE of Initial
Hearing to parties
appearing to have
interest and adjoining
owners
Publication 2x in
OG (successive
issues)
Mailing
Posting
MOTION TO DISMISS
If land covered
prior OCT
pursuant to land
patent
if barred by res
judicata
Page 305 of 338
Appeal
Court may
issue writ of
possession or
order
demolition
ANNEX B: CADASTRAL
REGISTRATION
PROCEEDINGS
O. TORTS
=================================
TOPICS UNDER THE SYLLABUS
I. Principles
A. Abuse of right; elements
B. Unjust enrichment
C. Liability without fault
D. Acts contrary to law
E. Acts contrary to morals
II. Classification of Torts
A. According to manner of commission:
intentional, negligent and strict liability
B. According to scope: general or specific
=================================
I. PRINCIPLES
Art. 2176. Whoever by act or omission causes damage to
another, there being fault or negligence, is obliged to pay
for the damage done. Such fault or negligence, if there is no
pre-existing contractual relation between the parties, is
called a quasi-delict and is governed by the provisions of this
Chapter. (1902a)
ELEMENTS OF QUASI DELICT/TORTS:
1. Act or omission
2. Damage or injury is caused to another
3. Fault or negligence is present
4. There is no pre-existing contractual relations
between the parties
5. Causal connection between damage done and
act/omission
II.
CLASSIFICATION OF TORTS
NEGLIGENCE
The omission of that degree of diligence which is required
by the nature of the obligation and corresponding to the
circumstances of the persons, time and place. (Art. 1173,
NCC)
COMISSION OF TORTS
KINDS OF NEGLIGENCE
1. Quasi delict (Art. 2176 NCC)
2. Criminal negligence (Art. 356 RPC)
3. Contractual negligence (NCC provisions on contracts
particularly Arts. 1170 to 1174)
ACCORDING TO SCOPE
GENERAL TORTS: Covered by Art. 2176 on Quasi-Delict
=================================
TOPICS UNDER THE SYLLABUS
III. The Tortfeasor
A. The direct tortfeasor
(1) Natural persons
(2) Juridical persons
B. Persons made responsible for others
(1) In General
(a) Quasi-delicts under Article 2180, how
interpreted Family Code, Arts. 218-219,
221
(b) Indirect liability for intentional acts
(c) Presumption of negligence on persons
indirectly responsible
(d) Nature of liability; joint or solidary?
(2) In Particular
(a) Parents
(b) Guardian
(c) Owners and managers of establishments
and enterprises
(d) Employers
(e) State
(f) Teachers and heads of establishments of
arts and trades
C. Joint tortfeasors (Art. 2194, Civil Code)
=================================
III. TORTFEASOR
TORTFEASOR - Whoever by act or omission causes damage
to another, there being no fault or negligence is obliged to
pay for the damage done (art 2176).
CORPORATE TORTFEASOR
A corporation is civilly liable in the same manner as natural
persons for torts, because "generally speaking, the rules
governing the liability of a principal or master for a tort
committed by an agent or servant are the same whether the
principal or master be a natural person or a corporation,
and whether the servant or agent be a natural or artificial
person. All of the authorities agree that a principal or
master is liable for every tort which he expressly directs or
authorizes, and this is just as true of a corporation as of a
natural person, A corporation is liable, therefore, whenever
a tortious act is committed by an officer or agent under
express direction or authority from the stockholders or
members acting as a body, or, generally, from the directors
as the governing body.
1. CHILDREN
The action of the child will not necessarily be judged
according to the standard of an adult. But if the minor is
mature enough to understand and appreciate the nature
and consequences of his actions, he will be considered
negligent if he fails to exercise due care and precaution in
the commission of such acts.
NOTE: Applying the provisions of the RPC, Judge Sangco
takes the view that a child who is 9 or below is
conclusively presumed to be incapable of negligence.
On the other hand, if the child is above 9 years but
below 15, there is a disputable presumption of absence
or negligence.
Absence of negligence does not necessarily mean
absence of liability. A child under 9 years can still be
subsidiarily liable with his property (Art. 100 RPC)
2. PHYSICAL DISABILITY
GENERAL RULE: a weak or accident prone person must
come up to the standard of a reasonable man, otherwise, he
will be considered as negligent
EXCEPTION: If the defect amounts to a real disability, the
standard of conduct is that of a reasonable person under
like disability.
=================================
TOPICS UNDER THE SYLLABUS
V. Proximate Cause
A. Concept
(1) Definition
(2) Test
(3) Distinguished from immediate cause
(4) Distinguished from intervening cause
(5) Distinguished from remote and concurrent
B. Cause in fact
(1) Substantial factor test
(2) Concurrent causes
C. Legal cause
(1) Natural and probable consequences
(2) Foreseeability
D. Efficient intervening cause
NECESSARY LINK
Vda. de Bataclan v. Medina, [G.R. No. L-10126, October
22, 1957]
It may be that ordinarily, when a passenger bus
overturns, and pins down a passenger, merely causing
him physical injuries, if through some event, unexpected
and extraordinary, the overturned bus is set on fire, say,
by lightning, or if some highwaymen after looting the
vehicle sets it on fire, and the passenger is burned to
death, one might still contend that the proximate cause
of his death was the fire and not the overturning of the
vehicle. But in the present case and under the
circumstances obtaining in the same, we do not hesitate
to hold that the proximate cause of the death of Bataclan
was the overturning of the bus, this for the reason that
when the vehicle turned not only on its side but
completely on its back, the leaking of the gasoline from
the tank was not unnatural or unexpected; that the
coming of the men with a lighted torch was in response
to the call for help, made not only by the passengers, but
most probably, by the driver and the conductor
themselves, and that because it was very dark (about
2:30 in the morning), the rescuers had to carry a light
with them; and coming as they did from a rural area
where lanterns and flashlights were not available, they
had to use a torch, the most handy and available; and
what was more natural than that said rescuers should
innocently approach the overturned vehicle to extend
the aid and effect the rescue requested from them. In
other words, the coming of the men with the torch was
to be expected and was natural sequence of the
overturning of the bus, the trapping of some of its
passengers bus, the trapping of some of its passengers
and the call for outside help
NOTE: If plaintiff's negligence is only contributory, he is
considered partly responsible only. Plaintiff may still recover
from defendant but the award may be reduced by the
courts in proportion to his own negligence
IMMEDIATE CAUSE
The cause nearest in time to, the injury.
INTERVENING CAUSE
Phoenix Construction v. IAC, [G.R. L-65295, March 10,
1987]
If the intervening cause is one which in ordinary human
experience is reasonably to be anticipated or one which
the defendant has reason to anticipate under the
particular circumstances, the defendant may be negligence
among other reasons, because of failure to guard against
it; or the defendant may be negligent only for that reason.
Thus one who sets a fire may be required to foresee that
an ordinary, usual and customary wind arising later wig
B. CAUSE IN FACT
BUT FOR TEST
The (but for) test requires a plaintiff to establish that the act
complained of probably caused the subsequent disability.
NELSON V. FIBREBOARD CORPORATION, [912 F.2d 469]
The test applied to determine whether negligent conduct
was the efficient, or proximate cause of the injury or loss
suffered by the claimant is whether such conduct is a cause
without which the injury would not have taken place (which
test is frequently referred to as the "sine qua non rule"), or
is the efficient cause which set in motion the chain of
C. LEGAL CAUSE
TEST OF FORSEEABILITY
Where the particular harm was reasonably foreseeable at
the time of the defendants misconduct, his act or omission
is the legal cause thereof. Foreseeability is the fundamental
test of the law of negligence. To be negligent, the defendant
must have acted or failed to act in such a way that an
ordinary reasonable man would have realized that certain
interests of certain persons were unreasonably subjected to
a general but definite class of risk which made the actors
conduct negligent, it is obviously the consequence for the
actor must be held legally responsible. Otherwise, the legal
duty is entirely defeated. Accordingly, the generalization
may be formulated that all particular consequences, that is,
consequences which occur in a manner which was
reasonably foreseeable by the defendant at the time of his
misconduct are legally caused by his breach of duty.
TEST OF NATURAL AND PROBABLE CAUSES
A natural consequence of an act is the consequence which
ordinarily follows it. A probable consequence is one that is
more likely to follow than fail to follow its supposed cause
but it is need one be one which necessarily follow such
cause. (Sangco, Philippine Law on Torts and Damages,
1994)
HINDSIGHT TEST
A party guilty of negligence or omission is responsible for all
the consequences which a prudent and experienced party,
fully acquainted with all the circumstances which in fact
exist, whether they could have been ascertained by
reasonable diligence, or not, would have thought at the
time of the negligent act as reasonably possible to follow, if
they had been suggested to his mind.
E. CAUSE/CONDITION
Phoenix Construction v. IAC, G.R. L-65295, [March 10,
1987]
Many courts have sought to distinguish between the active
"cause" of the harm and the existing "conditions" upon
which that cause operated. If the defendant has created
only a passive static condition, which made the damage
possible, the defendant is said not to be liable. But so far
as the fact of causation is concerned, in the sense of
necessary antecedents which have played an important
part in producing the result it is quite impossible to
distinguish between active forces and passive situations,
particularly since, as is invariably the case, the latter are
the result of other active forces which have gone before.
The defendant who spills gasoline about the premises
creates a "condition," but the act may be culpable because
of the danger of fire. When a spark ignites the gasoline,
the condition has done quite as much to bring about the
fire as the spark; and since that is the very risk, which the
defendant has created, the defendant will not escape
responsibility. Even the lapse of a considerable time during
which the "condition" remains static will not necessarily
affect liability; one who digs a trench in the highway may
still be liable to another who fans into it a month
afterward. "Cause" and "condition" still find occasional
mention in the decisions; but the distinction is now almost
entirely discredited. So far as it has any validity at all, it
must refer to the type of case where the forces set in
operation by the defendant have come to rest in a position
of apparent safety, and some new force intervenes. But
even in such cases, it is not the distinction between
"cause" and "condition" which is important but the nature
of the risk and the character of the intervening cause.
ORBIT TEST
E.
=================================
TOPICS UNDER THE SYLLABUS
VI. Legal Injury
A. Concept
B. Elements of right
C. Violation of right or legal injury
D. Classes of injury
(1) Injury to persons
(2) Injury to property
(3) Injury to relations
=================================
VI. LEGAL INJURY
DAMAGE the detriment, injury or loss which is occasioned
by reason of fault of another in the property or person
DAMAGES the pecuniary compensation, recompense or
satisfaction for an injury sustained, or as otherwise
expressed, the pecuniary consequences which the law
imposes for the breach of some duty or the violation of
some rights
DAMNUM ABSQUE INJURIA or Damage without Injury a
person may have suffered physical hurt or injury, but for as
long as no legal injury or wrong has been done, there is no
liability
INJURY
DAMAGE
DAMAGES
Legal invasion of Loss, hurt or The recompense
a legal right
harm
which or compensation
results from the awarded for the
injury
damage suffered
=================================
TOPICS UNDER THE SYLLABUS
VII. Intentional Torts
A. General
(1) Concept
(2) Classes
(a) Interference with persons and property
(b) Interference with relations
B. Interference with rights to persons and
property
(1) Intentional physical harms
(a) General
(b) Violation of persons security, physical
injuries (Art. 33, Civil Code)
(c) False imprisonment (illegal detention)
(d) Trespass to land
(e) Interference with personal property
(2) Intentional non-physical harms
(a) General
(b) Violation of personal dignity
(c) Infliction of emotional distress
(d) Violation of privacy
(e) Disturbance of peace of mind
(f) Malicious prosecution
(g) Defamation
(h) Fraud or misrepresentation (formerly
deceit)
(i) Seduction
(j) Unjust dismissal
C. Interference with relations
(1) General
(a) Concept
(b) Kinds
(2) Family relations
(a) Alienation of affection
(b) Loss of consortium
(c) Criminal conversation (adultery)
(3) Social relations
(a) Meddling with or disturbing family
relations
(b) Intriguing to cause another to be
alienated from his friends
(4) Economic relations
(a) Interference with contractual relations
(b) Unfair competition
(5) Political relations
(a) Violation of right to suffrage (NCC, Art.
32)
(b) Violation of other political rights
2.
3. SEXUAL ASSAULT
Defendant is liable for all forms of sexual assault
4. DESERTION BY A SPOUSE
A spouse has the legal obligation to live with
his/her spouse. If a spouse does not perform
his/her duty to the other, he may be liable for
Public officers
KINDS
Nuisance Per Se - denounced as nuisance by
common law or by statute
Nuisance Per Accidens - those which are in their
nature not nuisances, but may become so by reason
=================================
TOPICS UNDER THE SYLLABUS
VII. Negligence
A. Concept
B. Good father of a family or reasonably prudent
man
C. Standard of care
(1) Civil Code, Art. 1173
(2) Emergency Rule
D. Unreasonable risk of harm
E. Evidence
F. Presumption of negligence
(1) Legal provisions
(2) Res ipsa loquitur
G. Defenses
(1) Complete
(a) Absence of element
(b) Accident or fortuitous event
(c) Damnum absque injuria
(d) Authority of law
(e) Assumption of risk
(f) Last clear chance
(g) Prescription (Civil Code, Arts. 1144, 1146,
and 1150)
(h) Waiver
(i) Double recovery (Civil Code, Art. 2177)
=================================
3.
NOTE:
Failure of the court to make any pronouncement,
favorable or unfavorable, as to the civil liability of the
accused amounts to a reservation of the right to have
the civil liability litigated and determined in a separate
action. The rules nowhere provide that if the court fails
to determine the civil liability it becomes no longer
enforceable. Jarantilla v. CA, [171 SCRA 42]
A quasi-delict is a separate legal institution under the
Civil Code and is entirely apart and independent from a
delict or crime a distinction exists between the civil
liability arising from a crime and the responsibility for
quasi-delicts or culpa extra-contractual. Castillo v. CA,
[176 SCRA 591]
TESTS OF NEGLIGENCE
Did the defendant in doing the alleged negligent act use
the reasonable care and caution which an ordinary
prudent person would have used in the same situation?
If not, then he is guilty of negligence
Could a prudent man, in the case under consideration,
foresee harm as a result of the course pursued?
If so, it as the duty of the actor to take precautions to
guard against harm
VII. NEGLIGENCE
ELEMENTS OF QUASI DELICT/TORTS:
1. Act or omission
2. Damage or injury is caused to another
3. Fault or negligence is present
4. There is no pre-existing contractual relations
between the parties
5. Causal connection between damage done and
act/omission
NEGLIGENCE - The omission of that degree of diligence
which is required by the nature of the obligation and
corresponding to the circumstances of the persons, time
and place
KINDS OF NEGLIGENCE
1. Quasi delict (Art. 2176 NCC)
2. Criminal negligence (Art. 356 RPC)
on
Vinculum Juris
Proof Needed
Defense available
Pre-existing contract
Burden of proof
CONTRACT
Contract
Preponderance of evidence
Exercise of extraordinary diligence (in contract
of carriage), Force Majeure
There is a pre-existing contract
Contractual party.
Prove the ff.:
1. existence of a contract
2. breach
CONTRACT
Vinculum Juris
Contract
Proof Needed
Defense available
Preponderance of evidence
Exercise of extraordinary
diligence (in contract of
carriage), Force Majeure
There is a pre-existing
contract
Contractual party.
Prove the ff.:
1. existence of a contract
2. breach
Solidary
Pre-existing contract
Burden of proof
Liability of Employer
Reservation Requirement
QUASI DELICT
Negligent act/ omission (culpa, imprudence)
Preponderance of evidence
Exercise of diligence of a good father of a family in
the selection and supervision of employees
No pre-existing contract
Victim.
Prove the ff.:
1.damage
2. negligence
3.causal connection between negligence and
damage done
DELICT
Act / omission committed by means of dolo (deliberate,
malicious, in bad faith)
Proof beyond reasonable doubt
No pre-existing contract
Prosecution. Accused is presumed innocent until the
contrary is proved.
Subsidiary
Civil aspect is Impliedly instituted with criminal action
CIRCUMSTANCES TO CONSIDER
1. Time
2. Place
3. Personal circumstances of the Actors
GOOD FATHER OF A FAMILY (pater familias)
The only standard of conduct used in the Philippines (Art.
1173 NCC)
2.
EMERGENCY RULE
Under this rule, one who suddenly finds himself in a place of
danger, and is required to act without time to consider the best
means that may be adopted to avoid the impending danger, is
not guilty of negligence, if he fails to adopt what subsequently
and upon reflection may appear to have been a better method,
unless the danger in which he finds himself is brought about by
his own negligence DELSAN Transport v. C&A Construction,
[G.R. 156034, October 1, 2003]
UNREASONABLE RISK OF HARM
Indeed, a higher degree of care is required of someone who has
in his possession or under his control an instrumentality
extremely dangerous in character, such as dangerous weapons
or substances. Such person in possession or control of
dangerous instrumentalities has the duty to take exceptional
precautions to prevent any injury being done thereby. Unlike
the ordinary affairs of life or business which involve little or no
risk, a business dealing with dangerous weapons requires the
exercise of a higher degree of care. Pacis v. Morales, [G.R.
169467, February 25, 2010]
EVIDENCE
1.
DAMAGE / INJURY
b.
c.
2.
3.
REQUISITES:
a. Plaintiff was in a position of danger by his own
negligence
REQUISITES:
a. Intentional exposure to a known danger
b. One who voluntarily assumed the risk of an
injury from a known danger cannot recover in an
action for negligence or an injury is incurred
c. Plaintiffs
acceptance
of
risk
(by
law/contract/nature of obligation) has erased
defendants duty so that his negligence is not a
legal wrong
d. Applies to all known danger
6.
EXAMPLES
The owner or lawful possessor of a thing has the right
to exclude any person from the enjoyment and
disposal thereof. For this purpose, he may use such
force as may be reasonably necessary to repel or
prevent an actual or threatened unlawful physical
invasion or usurpation of his property (Art. 429 NCC)
Article 11 of the Revised Penal Code (Act 3815):
i. Self-Defense
ii. Defense of Property
iii. Obedience to Lawful Order
iv. Lawful Exercise of a right or duty
7.
REQUISITES:
a. The cause of the unforeseen and unexpected
occurrence, or of the failure of the debtor to comply
with his obligation, must be independent of the
human will;
b. It must be impossible to foresee the event which
constitutes caso fortuito or if it can be foreseen it
must be impossible to avoid
c. The occurrence must be such as to render it
impossible for the debtor to fulfill his obligation in a
normal manner
d. The obligor must be free from any participation in
the aggravation of the injury resulting to the
creditor.
11. PRESCRIPTION
a. Injury to right of plaintiff/quasi delict - 4
years
b. Defamation - 1 year
c. When no specific provision, must be counted
from the day they may be brought
12. PROSCRIPTION AGAINST DOUBLE RECOVERY Responsibility for fault or negligence under quasidelict is entirely separate and distinct from civil action
arising from the RPC but plaintiff cannot recover
damages twice for same act or omission of the
defendant
13. WAIVER/ CONSENT
9.
===============================
TOPICS UNDER THE SYLLABUS
IX. Special Liability in Particular Activities
A. General
(1) Concept
B. Products Liability
(1) Manufacturers or processors
a. Elements
b. Consumer Act [RA 7394, Sec. 92-107, (Ch. 1)]
C. Nuisance (Civil Code, Arts. 694-707)
(1) Nuisance per se and nuisance per accidence
(2) Public nuisance and private nuisance
(3) Attractive nuisance
D. Violation of constitutional rights
(1) Violation of civil liberties
E. Violation of rights committed by public officers
F. Provinces, cities and municipalities
G. Owner of motor vehicle
H. Proprietor of building or structure or thing
I. Head of family
X. Strict Liability
a. Animals
(1) Possessor and user of an animal
b. Nuisance (supra)
(1) Classes: Per se or per accidents; Public or
Private
(2) Easement against nuisance
c. Products Liability (supra)
(1) Consumer Act
===============================
IX. SPECIAL LIABILITY
STRICT LIABILITY: PERSONS EXPRESSLY MADE LIABLE BY LAW
EVEN WITHOUT FAULT
1. POSSESSOR OF AN ANIMAL
GENERAL RULE: The possessor of an animal or whoever may
make use of the same is responsible for the damage which it
may cause
EXCEPTIONS:
a.
b.
2.
Force majeure
Fault of the injured/damaged person
NOTE: Every owner of a motor vehicle shall file with the proper
government office a bond executed by a governmentcontrolled corporation or office, to answer for damages to third
persons.
3. MANUFACTURERS & PROCESSORS OF FOODSTUFFS,
DRINKS, TOILET ARTICLES & SIMILAR GOODS
a.
b.
c.
d.
e.
6.
Public officers
===============================
TOPICS UNDER THE SYLLABUS
DAMAGES-BOOK II
I. General Considerations
A. Classification
(1) Under Art. 2197 of the Civil Code
(2) According to purpose
(3) According to manner of determination
b.
REQUIREMENTS:
i.
Need to be pleaded
ii.
Pray for the relief that claim for loss be granted
iii.
Prove the loss
WHEN LOSS NEED NOT BE PROVED:
a. Liquidated damages previously agreed upon;
liquidated damages take the place of actual damages
except when additional damages incurred
b. If damages other than actual are sought
c. Loss is presumed (ex: loss if a child or spouse)
d. Forfeiture of bonds in favor of the government for the
purpose of promoting public interest or policy (ex:
bond for temporary stay of alien)
CONTRACTS AND QUASI-CONTRACTS
a. Damages in case of Good Faith
i.
Natural and probable consequences of breach of
obligations
ii.
Parties have foreseen or could have reasonably
foreseen at the time the obligation was created
b. Damages in case of Bad Faith
i.
It is sufficient that damages may be reasonably
attributed to the non-performance of the
obligation.
CRIMES AND QUASI-CRIMES
a. Defendant is liable for all damages that are natural
and probable consequences of the act complained of;
b. Not necessary that damages have been foreseen or
could have been reasonably foreseen.
VALUE OF LOSS SUFFERED
Destruction of things, fines or penalties, medical & hospital
bills, attorney's fees, interests, cost of litigation
LOSS OF EARNING CAPACITY:
Variables to consider are:
a. life expectancy
b. net income/earnings total of the earnings less
expenses necessary for the creation of such earnings
and less living or other incidental expenses
Formula: American Expectancy Table of Mortality or the
Actuarial of Combined Experience Table of Mortality
i.
ii.
iii.
iv.
v.
===============================
TOPICS UNDER THE SYLLABUS
III. Moral Damages
A. Concept (Arts. 2217-2218)
B. When recoverable (Arts. 2219-2220)
(1) In seduction, abduction, rape and other
lascivious acts
(2) In acts referred to in Arts. 21, 26, 27, 28, 29,
32, 34 & 35, Civil Code
(3) In cases of malicious prosecution
IV. Nominal Damages
A. Concept
B. When awarded
V. Temperate or Moderate Damages
A. Concept
B. When awarded
VI. Liquidated Damages
A. Concept (Civil Code, Art. 2226)
B. Rules governing in case of breach of contract
VII. Exemplary or Corrective Damages
A. Concept (Civil Code, Art. 2229)
B. When recovered
(1) In criminal offenses (Civil Code, Art. 2230)
(2) In quasi-delicts (Civil Code, Art. 2231)
(3) In contracts and quasi-contracts (Civil Code,
Art. 2232)
C. Requisites
(1) Arts. 2233, 2234
===============================
C. MORAL
MORAL DAMAGES Include: (PBMF-MWSS)
a. Physical suffering
b. Besmirched reputation
c. Mental anguish
d. Fright
e.
f.
g.
h.
i.
j.
k.
Moral shock
Wounded feelings
Social humiliation
Serious anxiety
Sentimental value of real or personal property may be
considered in adjudicating moral damages
The social and economic/financial standing of the
offender and the offended party should be taken into
consideration in the computation of moral damages
Moral damages is awarded only to enable the injured
party to obtain means, diversions or amusements that
will serve to alleviate the moral suffering he has
undergone, by reason of defendant's culpable action
and not intended to enrich a complainant at the
expense of defendant
D. NOMINAL DAMAGES
Adjudicated in order that a right of the plaintiff, which
has been violated or invaded by the defendant, may be
vindicated or recognized, and not for the purpose of
indemnifying the plaintiff for any loss suffered by him
ELEMENTS:
a. Plaintiff has a right
b. Right of plaintiff is violated
c. Purpose is not to identify but vindicate or recognize
right violated
NOTE:
The Law presumes damage although actual or
compensatory damages are not proven
They are damages in the name only and are allowed simply
in recognition of a technical injury based on a violation of a
legal right
Nominal damages cannot coexist with actual or
compensatory damages
E. TEMPERATE OR MODERATE DAMAGES
More than nominal but less than compensatory where
some pecuniary loss has been suffered but its amount
can't be proved with certainty due to the nature of the
case
In cases where the resulting injury might be continuing and
possible future complications directly arising from the
injury, while certain to occur are difficult to predict,
temperate damages can and should be awarded on top of
actual or compensatory damages; in such cases there is no
incompatibility between actual and temperate damages.
REQUISITES:
a. Some pecuniary loss
b. Loss is incapable of pecuniary estimation
c. Must be reasonable
F. LIQUIDATED DAMAGES
Those agreed upon by the parties to a contract, to be paid
in case of breach thereof
WHEN LIQUIDATED DAMAGES MAY BE EQUITABLY REDUCED:
a. Iniquitous or unconscionable
b. Partial or irregular performance
G. EXEMPLARY
===============================
TOPICS UNDER THE SYLLABUS
XIII. Damages in Case of Death
A. In crimes and quasi-delicts causing death
(1) In death caused by breach of conduct by a
common crime
IX. Graduation of Damages
A. Duty of injured party