PROPERTY LAW BUKSU – College of Law
COSTITUTIONAL FRAMEWORKS
 ARTICLE II DECLARATION OF PRINCIPLES AND
STATE POLICIES PRINCIPLES
Section 5. The maintenance of peace and order, the protection
of life, liberty, and property, and promotion of the general
welfare are essential for the enjoyment by all the people of the
blessings of democracy.
Section 10. The State shall promote social justice in all phases
of national development.
 ARTICLE III - BILL OF RIGHTS
Section 1. No person shall be deprived of life, liberty, or
property without due process of law, nor shall any person be
denied the equal protection of the laws.
Section 9. Private property shall not be taken for public use
without just compensation.
Section 10. No law impairing the obligation of contracts shall be
passed.
 ARTICLE V SUFFRAGE
Section 1. Suffrage may be exercised by all citizens of the
Philippines, not otherwise disqualified by law, who are at least
eighteen years of age, and who shall have resided in the
Philippines for at least one year and in the place wherein they
propose to vote, for at least six months immediately preceding
the election. No literacy, property, or other substantive
requirement shall be imposed on the exercise of suffrage.
 ARTICLE XII NATIONAL ECONOMY AND
PATRIMONY
Section 6. The use of property bears a social function, and all
economic agents shall contribute to the common good.
Individuals and private groups, including corporations,
cooperatives, and similar collective organizations, shall have the
right to own, establish, and operate economic enterprises,
subject to the duty of the State to promote distributive justice
and to intervene when the common good so demands.
 ARTICLE XIII SOCIAL JUSTICE AND HUMAN RIGHTS
Section 1. The Congress shall give highest priority to the
enactment of measures that protect and enhance the right of all
the people to human dignity, reduce social, economic, and
political inequalities, and remove cultural inequities by equitably
diffusing wealth and political power for the common good.
To this end, the State shall regulate the acquisition, ownership,
use, and disposition of property and its increments.
 Universal Declaration of Human Rights (UDHR)
Article 2
Everyone is entitled to all the rights and freedoms set forth in
this Declaration, without distinction of any kind, such as race,
colour, sex, language, religion, political or other opinion, national
or social origin, property, birth or other status.
Article 17
1. Everyone has the right to own property alone as well as in
association with others.
2. No one shall be arbitrarily deprived of his property.
CASES:
PHILIPPINE BLOOMING MILLS EMPLOYMENT
ORGANIZATION vs. PHILIPPINE BLOOMING MILLS CO.,
INC.
Facts:
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Philippine Blooming Employees Organization (PBMEO) decided
to stage a mass demonstration in front of Malacañang to
express their grievances against the alleged abuses of the
Pasig Police.
After learning about the planned mass demonstration, Philippine
Blooming Mills Inc., called for a meeting with the leaders of the
PBMEO. During the meeting, the planned demonstration was
confirmed by the union. But it was stressed out that the
demonstration was not a strike against the company but was in
fact an exercise of the laborers' inalienable constitutional right to
freedom of expression, freedom of speech and freedom for
petition for redress of grievances.
The company asked them to cancel the demonstration for it
would interrupt the normal course of their business which may
result in the loss of revenue. This was backed up with the threat
of the possibility that the workers would lose their jobs if they
pushed through with the rally.
A second meeting took place where the company reiterated
their appeal that while the workers may be allowed to
participate, those from the 1st and regular shifts should not
absent themselves to participate, otherwise, they would be
dismissed. Since it was too late to cancel the plan, the rally took
place and the officers of the PBMEO were eventually dismissed
for a violation of the ‘No Strike and No Lockout’ clause of
their Collective Bargaining Agreement.
The lower court decided in favor of the company and the officers
of the PBMEO were found guilty of bargaining in bad faith. Their
motion for reconsideration was subsequently denied by the
Court of Industrial Relations for being filed two days late.
PROPERTY LAW BUKSU – College of Law
Issue:
Whether or not the workers who joined the strike violated the
CBA?
Held:
No. While the Bill of Rights also protects property rights, the
primacy of human rights over property rights is recognized.
Because these freedoms are "delicate and vulnerable, as well
as supremely precious in our society" and the "threat of
sanctions may deter their exercise almost as potently as the
actual application of sanctions," they "need breathing space to
survive," permitting government regulation only "with narrow
specificity." Property and property rights can be lost thru
prescription; but human rights are imprescriptible. In the
hierarchy of civil liberties, the rights to freedom of expression
and of assembly occupy a preferred position as they are
essential to the preservation and vitality of our civil and political
institutions; and such priority "gives these liberties the sanctity
and the sanction not permitting dubious intrusions."
The freedoms of speech and of the press as well as of peaceful
assembly and of petition for redress of grievances are absolute
when directed against public officials or "when exercised in
relation to our right to choose the men and women by whom we
shall be governed.”
PROPERTY RIGHTS IN PHILIPPINE CIVIL CODE
 NCC 414
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Art. 414. All things which are or may be the object of
appropriation are considered either:
(1) Immovable or real property; or
(2) Movable or personal property.
 Ownership NCC 427-428
Art. 427. Ownership may be exercised over things or rights. (n)
Art. 428. The owner has the right to enjoy and dispose of a
thing, without other limitations than those established by law.
The owner has also a right of action against the holder and
possessor of the thing in order to recover it. (348a)
 Possession NCC 523
Art. 523. Possession is the holding of a thing or the enjoyment
of a right. (430a)
 Usufruct, NCC 562
Art. 562. Usufruct gives a right to enjoy the property of another
with the obligation of preserving its form and substance, unless
the title constituting it or the law otherwise provides. (467)
RIGHT HOLDERS
1. Natural Person
 Individual – NCC 37 – 38; Art II, s,6: UDHR 2, 17
Art. 37. Juridical capacity, which is the fitness to be the subject
of legal relations, is inherent in every natural person and is lost
only through death. Capacity to act, which is the power to do
acts with legal effect, is acquired and may be lost. (n)
Art. 38. Minority, insanity or imbecility, the state of being a deaf-
mute, prodigality and civil interdiction are mere restrictions on
capacity to act, and do not exempt the incapacitated person
PROPERTY LAW BUKSU – College of Law
from certain obligations, as when the latter arise from his acts or
from property relations, such as easements. (32a)
ARTICLE II DECLARATION OF PRINCIPLES AND STATE
POLICIES PRINCIPLES
Section 6. The separation of Church and State shall be
inviolable.
Universal Declaration of Human Rights (UDHR)
Article 2
Everyone is entitled to all the rights and freedoms set forth in
this Declaration, without distinction of any kind, such as race,
colour, sex, language, religion, political or other opinion, national
or social origin, property, birth or other status.
Article 17
1. Everyone has the right to own property alone as well as in
association with others.
2. No one shall be arbitrarily deprived of his property.
 Marital Partners – FC 88, 90-93, 105-106, 108, 116
Art. 88. No judgment annulling a marriage shall be promulgated
upon a stipulation of facts or by confession of judgment.
Art. 90. When a marriage is annulled, the court shall award the
custody of the children as it may deem best, and make provision
for their education and support. Attorney's fees and expenses
incurred in the litigation shall be charged to the conjugal
partnership property, unless the action fails. (33a)
Art. 91. Damages may be awarded in the following cases when
the marriage is judicially annulled or declared void from the
beginning:
(1) If there has been fraud, force or intimidation in obtaining the
consent of one of the contracting parties;
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(2) If either party was, at the time of the marriage, physically
incapable of entering into the married state, and the other party
was unaware thereof;
(3) If the person solemnizing the marriage was not legally
authorized to perform marriages, and that fact was known to
one of the contracting parties, but he or she concealed it from
the other;
(4) If a bigamous or polygamous marriage was celebrated, and
the impediment was concealed from the plaintiff by the party
disqualified;
(5) If in an incestuous marriage, or a marriage between a
stepbrother and a stepsister or other marriage prohibited by
article 82, the relationship was known to only one of the
contracting parties but was not disclosed to the other;
(6) If one party was insane and the other was aware thereof at
the time of the marriage. (n)
Art. 92. Every priest, or minister, or rabbi authorized by his
denomination, church, sect, or religion to solemnize marriage
shall send to the proper government office a sworn statement
setting forth his full name and domicile, and that he is
authorized by his denomination, church, sect, or religion to
solemnize marriage, attaching to said statement a certified copy
of his appointment. The director of the proper government
office, upon receiving such sworn statement containing the
information required, and being satisfied that the denomination,
church, sect, or region of the applicant operates in the
Philippines, shall record the name of such priest or minister in a
suitable register and issue to him an authorization to solemnize
PROPERTY LAW BUKSU – College of Law
marriage. Said priest or minister or rabbi shall be obliged to
exhibit his authorization to the contracting parties, to their
parents, grandparents, guardians, or persons in charge
demanding the same. No priest or minister not having the
required authorization may solemnize marriage. (34a)
Art. 93. Freedom of religion shall be observed by public officials
in the issuance of authorization to solemnize marriages.
Consequently, no public official shall attempt to inquire into the
truth or validity of any religious doctrine held by the applicant or
by his church. (n)
Art. 105. During the pendency of legal separation proceedings
the court shall make provision for the care of the minor children
in accordance with the circumstances and may order the
conjugal partnership property or the income therefrom to be set
aside for their support; and in default thereof said minor children
shall be cared for in conformity with the provisions of this Code;
but the Court shall abstain from making any order in this respect
in case the parents have by mutual agreement, made provision
for the care of said minor children and these are, in the
judgment of the court, well cared for. (7a, Act 2710)
Art. 106. The decree of legal separation shall have the following
effects:
(1) The spouses shall be entitled to live separately from each
other, but marriage bonds shall not be severed;
(2) The conjugal partnership of gains or the absolute conjugal
community of property shall be dissolved and liquidated, but the
offending spouse shall have no right to any share of the profits
earned by the partnership or community, without prejudice to
the provisions of Article 176;
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(3) The custody of the minor children shall be awarded to the
innocent spouse, unless otherwise directed by the court in the
interest of said minors, for whom said court may appoint a
guardian;
(4) The offending spouse shall be disqualified from inheriting
from the innocent spouse by intestate succession. Moreover,
provisions in favor of the offending spouse made in the will of
the innocent one shall be revoked by operation of law. (n)
Art. 108. Reconciliation stops the proceedings for legal
separation and rescinds the decree of legal separation already
rendered.
The revival of the conjugal partnership of gains or of the
absolute conjugal community of property shall be governed by
Article 195. (10a. Act 2710)
Art. 116. When one of the spouses neglects his or her duties to
the conjugal union or brings danger, dishonor or material injury
upon the other, the injured party may apply to the court for relief.
The court may counsel the offender to comply with his or her
duties, and take such measures as may be proper. (n)
 Indigenous People Communities – R.A. No. 8371 –
3,5,7,8
REPUBLIC ACT NO. 8371
AN ACT TO RECOGNIZE, PROTECT AND PROMOTE THE
RIGHTS OF INDIGENOUS CULTURAL
COMMUNITIES/INDIGENOUS PEOPLES, CREATING A
NATIONAL COMMISSION ON INDIGENOUS PEOPLES,
ESTABLISHING IMPLEMENTING MECHANISMS,
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APPROPRIATING FUNDS THEREFOR, AND FOR OTHER
PURPOSES
SECTION 3. Definition of Terms. — For purposes of
this Act, the following terms shall mean:
a) Ancestral Domains — Subject to Section 56 hereof,
refer to all areas generally belonging to ICCs/IPs comprising
lands, inland waters, coastal areas, and natural resources
therein, held under a claim of ownership, occupied or
possessed by ICCs/IPs, by themselves or through their
ancestors, communally or individually since time immemorial,
continuously to the present except when interrupted by war,
force majeure or displacement by force, deceit, stealth or as a
consequence of government projects or any other voluntary
dealings entered into by government and private
individuals/corporations, and which are necessary to ensure
their economic, social and cultural welfare. It shall include
ancestral lands, forests, pasture, residential, agricultural, and
other lands individually owned whether alienable and disposable
or otherwise, hunting grounds, burial grounds, worship areas,
bodies of water, mineral and other natural resources, and lands
which may no longer be exclusively occupied by ICCs/IPs but
from which they traditionally had access to for their subsistence
and traditional activities, particularly the home ranges of
ICCs/IPs who are still nomadic and/or shifting cultivators;
b) Ancestral Lands — Subject to Section 56 hereof,
refers to land occupied, possessed and utilized by individuals,
families and clans who are members of the ICCs/IPs since time
immemorial, by themselves or through their predecessors-in-
interest, under claims of individual or traditional group
ownership, continuously, to the present except when interrupted
by war, force majeure or displacement by force, deceit, stealth,
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or as a consequence of government projects and other
voluntary dealings entered into by government and private
individuals/corporations, including, but not limited to, residential
lots, rice terraces or paddies, private forests, swidden farms and
tree lots;
c) Certificate of Ancestral Domain Title — refers to a
title formally recognizing the rights of possession and ownership
of ICCs/IPs over their ancestral domains identified and
delineated in accordance with this law;
d) Certificate of Ancestral Lands Title — refers to a title
formally recognizing the rights of ICCs/IPs over their ancestral
lands;
e) Communal Claims — refer to claims on land,
resources and rights thereon, belonging to the whole community
within a defined territory;
f) Customary Laws — refer to a body of written and/or
unwritten rules, usages, customs and practices traditionally and
continually recognized, accepted and observed by respective
ICCs/IPs;
g) Free and Prior Informed Consent — as used in this
Act shall mean the consensus of all members of the ICCs/IPs to
be determined in accordance with their respective customary
laws and practices, free from any external manipulation,
interference and coercion, and obtained after fully disclosing the
intent and scope of the activity, in a language and process
understandable to the community;
h) Indigenous Cultural Communities/Indigenous
Peoples — refer to a group of people or homogenous societies
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identified by self-ascription and ascription by others, who have
continuously lived as organized community on communally
bounded and defined territory, and who have, under claims of
ownership since time immemorial, occupied, possessed and
utilized such territories, sharing common bonds of language,
customs, traditions and other distinctive cultural traits, or who
have, through resistance to political, social and cultural inroads
of colonization, non-indigenous religions and cultures, became
historically differentiated from the majority of Filipinos. ICCs/IPs
shall likewise include peoples who are regarded as indigenous
on account of their descent from the populations which
inhabited the country, at the time of conquest or colonization, or
at the time of inroads of non-indigenous religions and cultures,
or the establishment of present state boundaries, who retain
some or all of their own social, economic, cultural and political
institutions, but who may have been displaced from their
traditional domains or who may have resettled outside their
ancestral domains;
i) Indigenous Political Structures — refer to
organizational and cultural leadership systems, institutions,
relationships, patterns and processes for decision-making and
participation, identified by ICCs/IPs such as, but not limited to,
Council of Elders, Council of Timuays, Bodong Holders, or any
other tribunal or body of similar nature;
j) Individual Claims — refer to claims on land and rights
thereon which have been devolved to individuals, families and
clans including, but not limited to, residential lots, rice terraces
or paddies and tree lots;
k) National Commission on Indigenous Peoples (NCIP)
— refers to the office created under this Act, which shall be
under the Office of the President, and which shall be the primary
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government agency responsible for the formulation and
implementation of policies, plans and programs to recognize,
protect and promote the rights of ICCs/IPs;
l) Native Title — refers to pre-conquest rights to lands
and domains which, as far back as memory reaches, have been
held under a claim of private ownership by ICCs/IPs, have never
been public lands and are thus indisputably presumed to have
been held that way since before the Spanish Conquest;
m) Nongovernment Organization — refers to a private,
nonprofit voluntary organization that has been organized
primarily for the delivery of various services to the ICCs/IPs and
has an established track record for effectiveness and
acceptability in the community where it serves;
n) People’s Organization — refers to a private, nonprofit
voluntary organization of members of an ICC/IP which is
accepted as representative of such ICCs/IPs;
o) Sustainable Traditional Resource Rights — refer to
the rights of ICCs/IPs to sustainably use, manage, protect and
conserve a) land, air, water, and minerals; b) plants, animals
and other organisms; c) collecting, fishing and hunting grounds;
d) sacred sites; and e) other areas of economic, ceremonial and
aesthetic value in accordance with their indigenous knowledge,
beliefs, systems and practices; and
p) Time Immemorial — refers to a period of time when
as far back as memory can go, certain ICCs/IPs are known to
have occupied, possessed in the concept of owner, and utilized
a defined territory devolved to them, by operation of customary
law or inherited from their ancestors, in accordance with their
customs and traditions.
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SECTION 5. Indigenous Concept of Ownership. —
Indigenous concept of ownership sustains the view that
ancestral domains and all resources found therein shall serve
as the material bases of their cultural integrity. The indigenous
concept of ownership generally holds that ancestral domains
are the ICC’s/IP’s private but community property which belongs
to all generations and therefore cannot be sold, disposed or
destroyed. It likewise covers sustainable traditional resource
rights.
SECTION 7. Rights to Ancestral Domains. — The
rights of ownership and possession of ICCs/IPs to their
ancestral domains shall be recognized and protected. Such
rights shall include:
a) Right of Ownership. — The right to claim ownership
over lands, bodies of water traditionally and actually occupied
by ICCs/IPs, sacred places, traditional hunting and fishing
grounds, and all improvements made by them at any time within
the domains;
b) Right to Develop Lands and Natural Resources. —
Subject to Section 56 hereof, right to develop, control and use
lands and territories traditionally occupied, owned, or used; to
manage and conserve natural resources within the territories
and uphold the responsibilities for future generations; to benefit
and share the profits from allocation and utilization of the natural
resources found therein; the right to negotiate the terms and
conditions for the exploration of natural resources in the areas
for the purpose of ensuring ecological, environmental protection
and the conservation measures, pursuant to national and
customary laws; the right to an informed and intelligent
participation in the formulation and implementation of any
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project, government or private, that will affect or impact upon the
ancestral domains and to receive just and fair compensation for
any damages which they may sustain as a result of the project;
and the right to effective measures by the government to
prevent any interference with, alienation and encroachment
upon these rights;
c) Right to Stay in the Territories. — The right to stay in
the territory and not to be removed therefrom. No ICCs/IPs will
be relocated without their free and prior informed consent, nor
through any means other than eminent domain. Where
relocation is considered necessary as an exceptional measure,
such relocation shall take place only with the free and prior
informed consent of the ICCs/IPs concerned and whenever
possible, they shall be guaranteed the right to return to their
ancestral domains, as soon as the grounds for relocation cease
to exist. When such return is not possible, as determined by
agreement or through appropriate procedures, ICCs/IPs shall be
provided in all possible cases with lands of quality and legal
status at least equal to that of the land previously occupied by
them, suitable to provide for their present needs and future
development. Persons thus relocated shall likewise be fully
compensated for any resulting loss or injury;
d) Right in Case of Displacement. — In case
displacement occurs as a result of natural catastrophes, the
State shall endeavor to resettle the displaced ICCs/IPs in
suitable areas where they can have temporary life support
systems: Provided, That the displaced ICCs/IPs shall have the
right to return to their abandoned lands until such time that the
normalcy and safety of such lands shall be determined:
Provided, further, That should their ancestral domain cease to
exist and normalcy and safety of the previous settlements are
not possible, displaced ICCs/IPs shall enjoy security of tenure
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over lands to which they have been resettled: Provided,
furthermore, That basic services and livelihood shall be
provided to them to ensure that their needs are adequately
addressed;
e) Right to Regulate Entry of Migrants. — Right to
regulate the entry of migrant settlers and organizations into the
domains;
f) Right to Safe and Clean Air and Water. — For this
purpose, the ICCs/IPs shall have access to integrated systems
for the management of their inland waters and air space;
g) Right to Claim Parts of Reservations. — The right to
claim parts of the ancestral domains which have been reserved
for various purposes, except those reserved and intended for
common public welfare and service; and
h) Right to Resolve Conflict. — Right to resolve land
conflicts in accordance with customary laws of the area where
the land is located, and only in default thereof shall the
complaints be submitted to amicable settlement and to the
Courts of Justice whenever necessary.
SECTION 8. Rights to Ancestral Lands. — The right of
ownership and possession of the ICCs/IPs to their ancestral
lands shall be recognized and protected.
a) Right to transfer land/property. — Such right shall
include the right to transfer land or property rights to/among
members of the same ICCs/IPs, subject to customary laws and
traditions of the community concerned.
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b) Right to Redemption. — In cases where it is shown
that the transfer of land/property rights by virtue of any
agreement or devise, to a non-member of the concerned
ICCs/IPs is tainted by the vitiated consent of the ICCs/IPs, or is
transferred for an unconscionable consideration or price, the
transferor ICC/IP shall have the right to redeem the same within
a period not exceeding fifteen (15) years from the date of
transfer.
CASE:
Cruz vs Sec. of Environmental and Natural Resources , et.
al.
FACTS:
Petitioners Isagani Cruz and Cesar Europa filed a suit for
prohibition and mandamus as citizens and taxpayers, assailing
the constitutionality of certain provisions of Republic Act No.
8371, otherwise known as the Indigenous People’s Rights Act of
1997 (IPRA) and its implementing rules and regulations (IRR).
The petitioners assail certain provisions of the IPRA and its IRR
on the ground that these amount to an unlawful deprivation of
the State’s ownership over lands of the public domain as well as
minerals and other natural resources therein, in violation of the
regalian doctrine embodied in section 2, Article XII of the
Constitution.
ISSUE:
Do the provisions of IPRA contravene the Constitution?
HELD:
No, the provisions of IPRA do not contravene the Constitution.
Examining the IPRA, there is nothing in the law that grants to
the ICCs/IPs ownership over the natural resources within their
ancestral domain. Ownership over the natural resources in the
ancestral domains remains with the State and the rights granted
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by the IPRA to the ICCs/IPs over the natural resources in their
ancestral domains merely gives them, as owners and occupants
of the land on which the resources are found, the right to the
small scale utilization of these resources, and at the same time,
a priority in their large scale development and exploitation.
Additionally, ancestral lands and ancestral domains are not part
of the lands of the public domain. They are private lands and
belong to the ICCs/IPs by native title, which is a concept of
private land title that existed irrespective of any royal grant from
the State. However, the right of ownership and possession by
the ICCs/IPs of their ancestral domains is a limited form of
ownership and does not include the right to alienate the same.
2. Juridical Persons
In general –NCC 44-47
Art. 44. The following are juridical persons:
(1) The State and its political subdivisions;
(2) Other corporations, institutions and entities for public interest
or purpose, created by law; their personality begins as soon as
they have been constituted according to law;
(3) Corporations, partnerships and associations for private
interest or purpose to which the law grants a juridical
personality, separate and distinct from that of each shareholder,
partner or member. (35a)
Art. 45. Juridical persons mentioned in Nos. 1 and 2 of the
preceding article are governed by the laws creating or
recognizing them.
Private corporations are regulated by laws of general application
on the subject.
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Partnerships and associations for private interest or purpose are
governed by the provisions of this Code concerning
partnerships. (36 and 37a)
Art. 46. Juridical persons may acquire and possess property of
all kinds, as well as incur obligations and bring civil or criminal
actions, in conformity with the laws and regulations of their
organization. (38a)
Art. 47. Upon the dissolution of corporations, institutions and
other entities for public interest or purpose mentioned in No. 2 of
Article 44, their property and other assets shall be disposed of in
pursuance of law or the charter creating them. If nothing has
been specified on this point, the property and other assets shall
be applied to similar purposes for the benefit of the region,
province, city or municipality which during the existence of the
institution derived the principal benefits from the same. (39a)
i) Partnership – NCC 1767-1768
Art. 1767. By the contract of partnership 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.
Two or more persons may also form a partnership for the
exercise of a profession. (1665a)
Art. 1768. The partnership has a judicial personality separate
and distinct from that of each of the partners, even in case of
failure to comply with the requirements of Article 1772, first
paragraph. (n)
ii) Private Corporations –BP 68, s, 2,3,36,109
Batas Pambansa Bilang 68
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THE CORPORATION CODE OF THE PHILIPPINES
Section 2. Corporation defined. – A corporation is an artificial
being created by operation of law, having the right of succession
and the powers, attributes and properties expressly authorized
by law or incident to its existence. (2)
Section 3. Classes of corporations. – Corporations formed or
organized under this Code may be stock or non-stock
corporations. Corporations which have capital stock divided into
shares and are authorized to distribute to the holders of such
shares dividends or allotments of the surplus profits on the basis
of the shares held are stock corporations. All other corporations
are non-stock corporations. (3a)
POWERS OF CORPORATIONS
Section 36. Corporate powers and capacity. – Every
corporation incorporated under this Code has the power and
capacity:
1. To sue and be sued in its corporate name;
2. Of succession by its corporate name for the period of time
stated in the articles of incorporation and the certificate of
incorporation;
3. To adopt and use a corporate seal;
4. To amend its articles of incorporation in accordance with the
provisions of this Code;
5. To adopt by-laws, not contrary to law, morals, or public policy,
and to amend or repeal the same in accordance with this Code;
6. In case of stock corporations, to issue or sell stocks to
subscribers and to sell stocks to subscribers and to sell treasury
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stocks in accordance with the provisions of this Code; and to
admit members to the corporation if it be a non-stock
corporation;
7. To purchase, receive, take or grant, hold, convey, sell, lease,
pledge, mortgage and otherwise deal with such real and
personal property, including securities and bonds of other
corporations, as the transaction of the lawful business of the
corporation may reasonably and necessarily require, subject to
the limitations prescribed by law and the Constitution;
8. To enter into merger or consolidation with other corporations
as provided in this Code;
9. To make reasonable donations, including those for the public
welfare or for hospital, charitable, cultural, scientific, civic, or
similar purposes: Provided, That no corporation, domestic or
foreign, shall give donations in aid of any political party or
candidate or for purposes of partisan political activity;
10. To establish pension, retirement, and other plans for the
benefit of its directors, trustees, officers and employees; and
11. To exercise such other powers as may be essential or
necessary to carry out its purpose or purposes as stated in the
articles of incorporation. (13a)
RELIGIOUS CORPORATIONS
Section 109. Classes of religious corporations. – Religious
corporations may be incorporated by one or more persons.
Such corporations may be classified into corporations sole and
religious societies.
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Religious corporations shall be governed by this Chapter and by
the general provisions on non-stock corporations insofar as they
may be applicable. (n)
iii) Other Private Juridical entities – RA 6938, s, 3,6,9
Republic Act No. 6938
AN ACT TO ORDAIN A COOPERATIVE CODE OF THE
PHILIPPINES
Section 3. General Concepts. - A cooperative is a duly
registered association of persons, with a common bond of
interest, who have voluntarily joined together to achieve a lawful
common social or economic end, making equitable contributions
to the capital required and accepting a fair share of the risks and
benefits of the undertaking in accordance with universally
accepted cooperative principles.
Section 6. Organization of Cooperatives. A Cooperative may
be organized and registered by at least fifteen (15) persons for
any or all of the following purposes:
(1) To encourage thrift and savings mobilization among the
members;
(2) To generate funds and extend credit to the members for
productive and provident purposes;
(3) To encourage among members systematic production and
marketing;
(4) To provide goods and services and other requirements to
the members;
(5) To develop expertise and skills among its members;
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(6) To acquire lands and provide housing benefits for the
members;
(7) To insure against losses of the members;
(8) To promote and advance the economic, social and
educational status of the members;
(9) To establish, own, lease or operate cooperative banks,
cooperative wholesale and retail complexes, insurance and
agricultural/industrial processing enterprises, and public
markets;
(10) To coordinate and facilitate the activities of cooperatives;
and
(11) To undertake any and all other activities for the effective
and efficient implementation of the provisions of this Code.
Section 9. Cooperative Powers and Capacities. - A
cooperative registered under this Code shall have the following
powers and capacities:
(1) To sue and be sued in its cooperative name;
(2) Of succession;
(3) To amend its articles of cooperation in accordance with the
provisions of this code;
(4) To adopt by-laws not contrary to law, morals or public policy,
and to amend and repeal the same in accordance with this
Code;
PROPERTY LAW BUKSU – College of Law
(5) To purchase, receive, take or grant, hold, convey, sell, lease,
pledge, mortgage, and otherwise deal with such real and
personal property as the transaction of the lawful affairs of the
cooperative may reasonably and necessarily require, subject to
the limitations prescribed by law and the Constitution;
(6) To enter into division, merger or consolidation, as provided
in this Code;
(7) To join federations or unions, as provided in this Code;
(8) To accept and receive grants, donations and assistance
from foreign and domestic sources; and
(9) To exercise such other powers granted in this Code or
necessary to carry out its purpose or purposes as stated in its
articles of cooperation.
iv) Public Corporations
State- NCC 420-422, Art XII, s 1-2
Art. 420. The following things are property of public dominion:
(1) Those intended for public use, such as roads, canals, 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. (339a)
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Art. 421. All other property of the State, which is not of the
character stated in the preceding article, is patrimonial property.
(340a)
Art. 422. Property of public dominion, when no longer intended
for public use or for public service, shall form part of the
patrimonial property of the State. (341a)
ARTICLE XII NATIONAL ECONOMY AND PATRIMONY
Section 1. The goals of the national economy are a more
equitable distribution of opportunities, income, and wealth; a
sustained increase in the amount of goods and services
produced by the nation for the benefit of the people; and an
expanding productivity as the key to raising the quality of life for
all, especially the underprivileged.
The State shall promote industrialization and full employment
based on sound agricultural development and agrarian reform,
through industries that make full of efficient use of human and
natural resources, and which are competitive in both domestic
and foreign markets. However, the State shall protect Filipino
enterprises against unfair foreign competition and trade
practices.
In the pursuit of these goals, all sectors of the economy and all
region s of the country shall be given optimum opportunity to
develop. Private enterprises, including corporations,
cooperatives, and similar collective organizations, shall be
encouraged to broaden the base of their ownership.
Section 2. All 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
other natural resources are owned by the State. With the
exception of agricultural lands, all other natural resources shall
not be alienated. The exploration, development, and utilization
of natural resources shall be under the full control and
supervision of the State. The State may directly undertake such
activities, or it may enter into co-production, joint venture, or
PROPERTY LAW BUKSU – College of Law
production-sharing agreements with Filipino citizens, or
corporations or associations at least 60 per centum of whose
capital is owned by such citizens. Such agreements may be for
a period not exceeding twenty-five years, renewable for not
more than twenty-five years, and under such terms and
conditions as may provided by law. In cases of water rights for
irrigation, water supply, fisheries, or industrial uses other than
the development of waterpower, beneficial use may be the
measure and limit of the grant.
The State shall protect the nations marine wealth in its
archipelagic waters, territorial sea, and exclusive economic
zone, and reserve its use and enjoyment exclusively to Filipino
citizens.
The Congress may, by law, allow small-scale utilization of
natural resources by Filipino citizens, as well as cooperative fish
farming, with priority to subsistence fishermen and fish workers
in rivers, lakes, bays, and lagoons.
The President may enter into agreements with foreign-owned
corporations involving either technical or financial assistance for
large-scale exploration, development, and utilization of minerals,
petroleum, and other mineral oils according to the general terms
and conditions provided by law, based on real contributions to
the economic growth and general welfare of the country. In such
agreements, the State shall promote the development and use
of local scientific and technical resources.
The President shall notify the Congress of every contract
entered into in accordance with this provision, within thirty days
from its execution.
Subdivision of the State –NCC 423-424, LGC 17b.2.ii;
18-19,21-22,89,447. a.5.i;458.a.5.i
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Art. 423. The property of provinces, cities, and municipalities is
divided into property for public use and patrimonial property.
(343)
Art. 424. Property for public use, in the provinces, cities, and
municipalities, consist of the provincial roads, city streets,
municipal streets, the squares, fountains, public waters,
promenades, and public works for public service paid for by said
provinces, cities, or municipalities.
AN ACT PROVIDING FOR A LOCAL GOVERNMENT CODE
OF 1991
Section 17. Basic Services and Facilities. -
(b) Such basic services and facilities include, but are not
limited to, the following:
(2) For a Municipality:
(ii) Pursuant to national policies and
subject to supervision, control and review of
the DENR, implementation of community-
based forestry projects which include
integrated social forestry programs and
similar projects; management and control of
communal forests with an area not
exceeding fifty (50) square kilometers;
establishment of tree parks, greenbelts, and
similar forest development projects;
Section 18. Power to Generate and Apply Resources. - Local
government units shall have the power and authority to
establish an organization that shall be responsible for the
PROPERTY LAW BUKSU – College of Law
efficient and effective implementation of their development
plans, program objectives and priorities; to create their own
sources of revenues and to levy taxes, fees, and charges which
shall accrue exclusively for their use and disposition and which
shall be retained by them; to have a just share in national taxes
which shall be automatically and directly released to them
without need of any further action; to have an equitable share in
the proceeds from the utilization and development of the
national wealth and resources within their respective territorial
jurisdictions including sharing the same with the inhabitants by
way of direct benefits; to acquire, develop, lease, encumber,
alienate, or otherwise dispose of real or personal property held
by them in their proprietary capacity and to apply their resources
and assets for productive, developmental, or welfare purposes,
in the exercise or furtherance of their governmental or
proprietary powers and functions and thereby ensure their
development into self-reliant communities and active
participants in the attainment of national goals.
Section 19. Eminent Domain. - A local government unit may,
through its chief executive and acting pursuant to an ordinance,
exercise the power of eminent domain for public use, or purpose
or welfare for the benefit of the poor and the landless, upon
payment of just compensation, pursuant to the provisions of the
Constitution and pertinent laws: Provided, however, That the
power of eminent domain may not be exercised unless a valid
and definite offer has been previously made to the owner, and
such offer was not accepted: Provided, further, That the local
government unit may immediately take possession of the
property upon the filing of the expropriation proceedings and
upon making a deposit with the proper court of at least fifteen
percent (15%) of the fair market value of the property based on
the current tax declaration of the property to be expropriated:
Provided, finally, That, the amount to be paid for the
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expropriated property shall be determined by the proper court,
based on the fair market value at the time of the taking of the
property.
Section 21. Closure and Opening of Roads. -
(a) A local government unit may, pursuant to an
ordinance, permanently or temporarily close or open any
local road, alley, park, or square falling within its
jurisdiction: Provided, however, That in case of
permanent closure, such ordinance must be approved by
at least two-thirds (2/3) of all the members of the
sanggunian, and when necessary, an adequate
substitute for the public facility that is subject to closure is
provided.
(b) No such way or place or any part thereof shall be
permanently closed without making provisions for the
maintenance of public safety therein. A property thus
permanently withdrawn from public use may be used or
conveyed for any purpose for which other real property
belonging to the local government unit concerned may be
lawfully used or conveyed: Provided, however, That no
freedom park shall be closed permanently without
provision for its transfer or relocation to a new site.
(c) Any national or local road, alley, park, or square may
be temporarily closed during an actual emergency, or
fiesta celebrations, public rallies, agricultural or industrial
fairs, or an undertaking of public works and highways,
telecommunications, and waterworks projects, the
duration of which shall be specified by the local chief
executive concerned in a written order: Provided,
however, That no national or local road, alley, park, or
PROPERTY LAW BUKSU – College of Law
square shall be temporarily closed for athletic, cultural, or
civic activities not officially sponsored, recognized, or
approved by the local government unit concerned.
(d) Any city, municipality, or barangay may, by a duly
enacted ordinance, temporarily close and regulate the
use of any local street, road, thoroughfare, or any other
public place where shopping malls, Sunday, flea or night
markets, or shopping areas may be established and
where goods, merchandise, foodstuffs, commodities, or
articles of commerce may be sold and dispensed to the
general public.
Section 22. Corporate Powers. -
(a) Every local government unit, as a corporation, shall
have the following powers:
(1) To have continuous succession in its corporate
name;
(2) To sue and be sued;
(3) To have and use a corporate seal;
(4) To acquire and convey real or personal
property;
(5) To enter into contracts; and
(6) To exercise such other powers as are granted
to corporations, subject to the limitations provided
in this Code and other laws.
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(b) Local government units may continue using, modify,
or change their existing corporate seals: Provided, That
newly established local government units or those
without corporate seals may create their own corporate
seals which shall be registered with the Department of
the Interior and Local Government: Provided, further,
That any change of corporate seal shall also be
registered as provided hereon.
(c) Unless otherwise provided in this Code, no contract
may be entered into by the local chief executive in behalf
of the local government unit without prior authorization by
the sanggunian concerned. A legible copy of such
contract shall be posted at a conspicuous place in the
provincial capitol or the city, municipal or barangay hall.
(d) Local government units shall enjoy full autonomy in
the exercise of their proprietary functions and in the
limitations provided in this Code and other applicable
laws,
Section 89. Prohibited Business and Pecuniary Interest. -
(a) It shall be unlawful for any local government official or
employee, directly or indirectly, to:
(1) Engage in any business transaction with the
local government unit in which he is an official or
employee or over which he has the power of
supervision, or with any of its authorized boards,
officials, agents, or attorneys, whereby money is to
be paid, or property or any other thing of value is
to be transferred, directly or indirectly, out of the
PROPERTY LAW BUKSU – College of Law
resources of the local government unit to such
person or firm;
(2) Hold such interests in any cockpit or other
games licensed by a local government unit;
(3) Purchase any real estate or other property
forfeited in favor of such local government unit for
unpaid taxes or assessment, or by virtue of a legal
process at the instance of the said local
government unit;
(4) Be a surety for any person contracting or doing
business with the local government unit for which
a surety is required; and
(5) Possess or use any public property of the local
government unit for private purposes.
(b) All other prohibitions governing the conduct of
national public officers relating to prohibited business and
pecuniary interest so provided for under Republic Act
Numbered Sixty-seven thirteen (R.A. No. 6713)
otherwise known as the "Code of Conduct and Ethical
Standards for Public Officials and Employees" and other
laws shall also be applicable to local government officials
and employees.
Section 447. Powers, Duties, Functions and Compensation. -
(a) The sangguniang bayan, as the legislative body of the
municipality, shall enact ordinances, approve resolutions
and appropriate funds for the general welfare of the
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municipality and its inhabitants pursuant to Section 16 of
this Code and in the proper exercise of the corporate
powers of the municipality as provided for under Section
22 of this Code, and shall:
(5) Approve ordinances which shall ensure the
efficient and effective delivery of the basic services
and facilities as provided for under Section 17 of
this Code, and in addition to said services and
facilities, shall:
(i) Provide for the establishment,
maintenance, protection, and conservation
of communal forests and watersheds, tree
parks, greenbelts, mangroves, and other
similar forest development projects;
Section 458. Powers, Duties, Functions and Compensation.
(a) The sangguniang panlungsod, as the legislative body
of the city, shall enact ordinances, approve resolutions
and appropriate funds for the general welfare of the city
and its inhabitants pursuant to Section 16 of this Code
and in the proper exercise of the corporate powers of the
city as provided for under Section 22 of this Code, and
shall:
(5) Approve ordinances which shall ensure the
efficient and effective delivery of the basic services
and facilities as provided for under Section 17 of
this Code, and in addition to said services and
facilities, shall:
PROPERTY LAW BUKSU – College of Law
(i) Provide for the establishment,
maintenance, protection, and conservation
of communal forests and watersheds, tree
parks, greenbelts, mangroves, and other
similar forest development projects;
GOCC’s – The Corporation Code,s 4, 36
Section 4. Corporations created by special laws or charters. -
Corporations created by special laws or charters shall be
governed primarily by the provisions of the special law or
charter creating them or applicable to them, supplemented by
the provisions of this Code, insofar as they are applicable. (n)
POWERS OF CORPORATIONS
Section 36. Corporate powers and capacity. - Every
corporation incorporated under this Code has the power and
capacity: 1. To sue and be sued in its corporate name; 2. Of
succession by its corporate name for the period of time stated in
the articles of incorporation and the certificate of incorporation;
3. To adopt and use a corporate seal; 4. To amend its articles of
incorporation in accordance with the provisions of this Code; 5.
To adopt by-laws, not contrary to law, morals, or public policy,
and to amend or repeal the same in accordance with this Code;
6. In case of stock corporations, to issue or sell stocks to
subscribers and to sell stocks to subscribers and to sell treasury
stocks in accordance with the provisions of this Code; and to
admit members to the corporation if it be a non-stock
corporation; 7. To purchase, receive, take or grant, hold,
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 PROPERTY LAW BUKSU – College of Law

convey, sell, lease, pledge, mortgage and otherwise deal with

such real and personal property, including securities and bonds
of other corporations, as the transaction of the lawful business
of the corporation may reasonably and necessarily require,
subject to the limitations prescribed by law and the Constitution;
8. To enter into merger or consolidation with other corporations
as provided in this Code; 9. To make reasonable donations,
including those for the public welfare or for hospital, charitable,
cultural, scientific, civic, or similar purposes: Provided, That no
corporation, domestic or foreign, shall give donations in aid of
any political party or candidate or for purposes of partisan
political activity; 10. To establish pension, retirement, and other
plans for the benefit of its directors, trustees, officers and
employees; and 11. To exercise such other powers as may be
essential or necessary to carry out its purpose or purposes as
stated in the articles of incorporation. (13a)

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